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2023

Charting
the Course

2023

Charting
the Course

A Message
From Our CEO

Since founding Avenue Living in 2006, our commitment has always been to deliver exceptional customer service, act as responsible stewards of capital, and be an employer of choice. These pillars remain instrumental to our focus throughout the years, even as we’ve adapted to various changes in the market.

 

As 2023 began, we followed the market closely and anticipated changes that may impact our business lines. In response, we intensified our focus on asset performance, operational efficiency, and the customer experience. Rising interest rates and inflation put the cost of living at the forefront of North American’s minds, so we delivered more innovation and enhanced our sustainability efforts to offer greater energy efficiency and affordability. Our investments in our vertically integrated platform continued and allowed us to grow at scale without significantly increasing operational costs. We saw the benefits of this inward focus on existing assets, illustrated by strong retention and customer satisfaction.

 

In the second half of 2023, we shifted gears and closed several large acquisitions across our portfolio. In total, the Core Trust added over 2,640 suites. Mini Mall focused on adding density to regions that have proven fruitful and closed their largest acquisition to date, consisting of 19 properties in Ohio and West Virginia. Tract Farmland Partners LP had a successful first year in operation, garnering interest from the investment community, which allowed the partnership to acquire more than 3,370 acres in 2023.

 

Sustainability remained a cornerstone of our business. We continued to advance our deep energy retrofit projects, which are designed to revitalize existing housing stock while maintaining affordability, driving value for our investors, and demonstrating to the property management industry that we are leaders in responsible investment.

 

Our growth this year speaks to the durability of our business model — one that we’ve carefully refined over the years while staying true to our strategy. We surpassed the remarkable milestone of $5 billion in assets under management and are now approaching $6 billion. Our funds continued to achieve greater success as we invested in more opportunities across North America. Once again, the past year proved how defensible and resilient our strategy is in uncertain times.

 

As we look toward 2024, we do so with a continued commitment to ‘Investing in the Everyday.’ We are honoured that our customers, investors, and employees have remained at our side throughout this journey.

 

Thank you for your ongoing support.

As 2023 began, we followed the market closely and anticipated changes that may impact our business lines. In response, we intensified our focus on asset performance, operational efficiency, and the customer experience. Rising interest rates and inflation put the cost of living at the forefront of North American’s minds, so we delivered more innovation and enhanced our sustainability efforts to offer greater energy efficiency and affordability. Our investments in our vertically integrated platform continued and allowed us to grow at scale without significantly increasing operational costs. We saw the benefits of this inward focus on existing assets, illustrated by strong retention and customer satisfaction.

 

In the second half of 2023, we shifted gears and closed several large acquisitions across our portfolio. In total, the Core Trust added over 2,640 suites. Mini Mall focused on adding density to regions that have proven fruitful and closed their largest acquisition to date, consisting of 19 properties in Ohio and West Virginia. Tract Farmland Partners LP had a successful first year in operation, garnering interest from the investment community, which allowed the partnership to acquire more than 3,370 acres in 2023.

 

Sustainability remained a cornerstone of our business. We continued to advance our deep energy retrofit projects, which are designed to revitalize existing housing stock while maintaining affordability, driving value for our investors, and demonstrating to the property management industry that we are leaders in responsible investment.

 

Our growth this year speaks to the durability of our business model — one that we’ve carefully refined over the years while staying true to our strategy. We surpassed the remarkable milestone of $5 billion in assets under management and are now approaching $6 billion. Our funds continued to achieve greater success as we invested in more opportunities across North America. Once again, the past year proved how defensible and resilient our strategy is in uncertain times.

 

As we look toward 2024, we do so with a continued commitment to ‘Investing in the Everyday.’ We are honoured that our customers, investors, and employees have remained at our side throughout this journey.

 

Thank you for your ongoing support.

Anthony Giuffre

Anthony Giuffre

FOUNDER, CHIEF EXECUTIVE OFFICER & EXECUTIVE CHAIRMAN, AVENUE LIVING

FOUNDER, CHIEF EXECUTIVE OFFICER & EXECUTIVE CHAIRMAN, AVENUE LIVING

About Us

Avenue Living is a vertically integrated real-estate owner and operator with nearly $6 billion in assets under management (AUM). Established in 2006, we acquire, reposition, and manage real estate assets across Canada and the United States. Centered around the ethos of “Investing in the Everyday,” we actively manage multi-family residential, self-storage, farmland, and commercial assets. We consider ourselves stewards of capital — our goal is to create long-term value and drive returns through our proven investment strategy.

core-trust

2006*

Inception date

Multi-family

Canada/u.s.

8-12%

10-Year target returns
Per Annum (Net of fees)

*Through predecessor entities
Core Trust was formed in 2017

2020

Inception date

self-storage

Self-storage

Canada/u.s.

12-15%

10-Year target returns
Per Annum (Net of fees)

2022

Inception date

Farmland

tract-2

Saskatchewan

10-14%

10-Year target returns
Per Annum (Net of fees)

2016

Inception date

farmland

Farmland

Saskatchewan

Saskatchewan

11-14%

TARGET RETURNS
PER ANNUM (NET OF FEES)

*Exited December 2023

2016

Inception date

Multi-family/Commercial

Prairie provinces

Prairie provinces

148.3%

TOTAL RETURN SINCE INCEPTION
(NET OF FEES)

Note: Figures presented for the year ended December 31, 2023

About Us

Avenue Living is a vertically integrated real-estate owner and operator with nearly $6 billion in assets under management (AUM). Established in 2006, we acquire, reposition, and manage real estate assets across Canada and the United States. Centered around the ethos of “Investing in the Everyday,” we actively manage multi-family residential, self-storage, farmland, and commercial assets. We consider ourselves stewards of capital — our goal is to create long-term value and drive returns through our proven investment strategy.

core-trust

2006*

Inception date

*Through predecessor entities
Core Trust was formed in 2017

Multi-family

Canada/u.s.

8-12%

10-Year target returns Per Annum (Net of fees)

Note: Figures presented for the year ended December 31, 2023

2020

Inception date

self-storage

Self-storage

Canada/u.s.

12-15%

10-Year target returns Per Annum (Net of fees)

Note: Figures presented for the year ended December 31, 2023

2022

Inception date

Farmland

tract-2

Saskatchewan

10-14%

10-Year target returns Per Annum (Net of fees)

Note: Figures presented for the year ended December 31, 2023

2016

Inception date

farmland

Farmland

Saskatchewan

Saskatchewan

11-14%

10-Year target returns Per Annum (Net of fees)

Note: Figures presented for the year ended December 31, 2023

*Exited December 2023

2016

Inception date

Multi-family/ Commercial

Prairie provinces

Prairie provinces

148.3%

TOTAL RETURN SINCE INCEPTION (Net of fees)

Note: Figures presented for the year ended December 31, 2023

Core Values

Our values and principles guide us every day.

We look to them every time we make decisions for our team members, customers, or investors in the immediate future or the long term.

Duty of Care

We go the extra mile for our customers, investors, and employees.

Entrepreneurial Spirit

We own it, we adapt in the face of challenges, and we relentlessly pursue progress.

Integrity

Integrity

We act with integrity, and we always work to do the right thing.

honest

Honest Communication

We’re transparent in how we communicate and act.

together

In It Together

We stand together and work together to get things done.

Duty of Care

We go the extra mile for our customers, investors, and employees.

Entrepreneurial Spirit

We own it, we adapt in the face of challenges, and we relentlessly pursue progress.

Integrity

Integrity

We act with integrity, and we always work to do the right thing.

honest

Honest Communication

We’re transparent in how we communicate and act.

together

In It Together

We stand together and work together to get things done.

Macroeconomic Commentary

Favourable Supply & Demand Dynamics in Multi-Family Target Markets

Throughout 2023, we witnessed a remarkable surge in housing demand in Alberta, driven by historic levels of net migration as Canadians flocked to the province in search of more affordable living costs, while home-building struggled to keep pace. Net migration into Alberta skyrocketed by 168% year-over-year1, leading to a housing supply gap estimated at 130,000 homes by the Canada Mortgage and Housing Corporation (CMHC)2. Leveraging these tailwinds, alongside improved operational efficiencies, Avenue Living achieved an impressive 13.6% growth in same-door net rental revenue throughout 2023, with net operating income also showing a substantial improvement of 21.9% on a same-door basis. Avenue Living strategically operates in markets where housing affordability remains within the CMHC’s affordability construct, which allows us to provide homes for the surge of Canadians looking for more affordable housing options. Looking ahead to 2024, we anticipate these tailwinds will persist, and we remain poised to meet the rising demand for workforce housing in our target markets while we continue to seek strategic acquisitions below replacement costs.


1Source: https://economicdashboard.alberta.ca/dashboard/net-migration/#interprovincial
2 Source: https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/research-reports/accelerate-supply/housing-shortages-canada-updating-how-much-we-need-by-2030

Strategic Debt Management in the Face of Rising Interest Rates

In 2023, the Bank of Canada raised its policy interest rate three times, pushing rates to levels not witnessed in over two decades. This economic tightening has had profound and far-reaching impacts across asset classes and on real estate markets in particular. Avenue Living successfully navigated these challenging headwinds in 2023 through strategic debt management, such as rotating out short-term floating rate debt into long-term fixed mortgages. Avenue Living’s debt management approach remains steadfast, and is independent of the economic cycle as we continuously strive to enhance our weighted average cost of capital and leverage ratios while maintaining a robust liquidity position.

Defensible Asset Classes Combating Inflationary Forces

Inflation remained above the Bank of Canada’s two percent target in 2023, which had widespread impacts on financial markets, driving investors to seek stable returns and protection against the erosive effects of rising prices. Real assets, including multi-family properties, self-storage facilities, and farmland, are well-recognized for their ability to act as a natural hedge to inflation, providing ballast against its eroding influence and a source of return for investors during inflationary periods. Avenue Living’s private real estate investment vehicles are tied to the fundamentals of the underlying assets, shielding investors from the volatility observed in the public markets, with target returns across each of our funds that are well above the rate of inflation.

A Strategy Informed
by Research

Our data-informed strategy allows us to deliver superior service to our customers while driving value for our investors, helping our business thrive in any environment. In 2023, we continued to dedicate time and resources to researching the forces impacting the real estate industry. This work has optimized our operations to ensure we make informed decisions that benefit all our stakeholders.

Revitalizing Canada’s
Housing Landscape: The
Crucial Role of Retrofits

Harvesting Alpha in
Canada’s Agricultural
Heartland

Walking the Talk: How
Avenue Living Brings
Sustainable Investing to Life

What Investors Need to
Know About Borrowing
Amid Rising Interest Rates

An International Examination of Market Orientation & Performance in Residential Property Management

Sustainability

With our unique active management approach, our multi-family residential team effectively delivers on capital improvements and enhancements to benefit our residents and properties. These changes contribute to our portfolio’s ongoing sustainability, which enables us to address climate-related challenges on a significant scale. The United Nations estimates that 80% of today’s buildings will exist in 2050, making it crucial that older buildings are retrofitted to operate more efficiently. As one of Canada’s largest residential rental property owners, we understand the important role we play in this undertaking. We are committed to initiatives that reduce our carbon footprint and are proud to be industry leaders in sustainable solutions.

The importance of large-scale retrofits

In 2023, Avenue Living advanced its deep energy retrofit projects on multi-family buildings across Western Canada as part of the Canada Infrastructure Bank (CIB) partnership program. The sustainable retrofit initiatives aim to optimize building performance, reduce GHG emissions by up to 50%, and enhance functionality and comfort for over 10,000 Canadians.

 

To facilitate large-scale retrofits, we established processes and benchmarks to ensure repeatability and maximum benefit for all stakeholders, from assessment to design to implementation.

The path to Large-Scale Retrofits

The SunRise: A Beacon of Sustainability and Community Revival in Edmonton

Construction is underway at The SunRise, formerly known as Capital Tower, a mixed-use multi-family and commercial property located in Edmonton. Built in the 1970s, the property is poised for a comprehensive, sustainable upgrade. The planned capital improvements include new interiors, insulation, triple-panel windows, heating and cooling systems, as well as a 26-metre (85-foot) array of solar panels, which will double as a mural that celebrates the intersection of Chinese and Indigenous cultures given its proximity to Chinatown and First Nations land. The $28 million project aligns with our sustainability initiatives and aims to provide a safe and comfortable home for future residents.

The SunRise: A Beacon of Sustainability and Community Revival in Edmonton

Construction is under way at The SunRise, formerly known as Capital Tower, a mixed-use multi-family and commercial property, located in Edmonton. Built in the 1970s, the property is poised for a comprehensive, sustainable upgrade. The planned capital improvements include new interiors, insulation, triple-panel windows, heating and cooling systems, as well as a 26-metre (85-foot) array of solar panels, which will double as a mural that celebrates the intersection of Chinese and Indigenous cultures given its proximity to Chinatown and First Nations land. The $28 million project aligns with our sustainability initiatives and aims to provide a safe and comfortable home for future residents.

Investing in the Future

Avenue Living regularly audits our portfolio to identify any gaps in efficiency and determine the optimal energy conservation measures (ECMs) that should be put in place. We consider a variety of components to ensure the upgrades we undertake seamlessly work together to make the greatest impact.

Interactive Diagram

Hover over each icon to learn more about our energy conservation measures.

Learn More on Our Environmental Page
zenbase

Freedom Through Financial Health

In late 2021, we partnered with Zenbase, an innovative fin-tech solution that provides financial peace of mind to residents by allowing them to split their monthly rent payment into smaller installments. The service helps residents reduce the financial stress that comes with late fees. It also minimizes the time property managers spend on rent collections.

 

In 2023, we’re proud to be the first property manager in Canada to adopt a rent reporting program through Zenbase. The automated rent reporting solution, CreditBuilder, allows our 25,000+ residents to build personal credit through their existing rent payments, free of charge. The program has numerous benefits, including access to lower interest rates and better finances for residents, all while obtaining a verified rent payment history.

 

Since launching these services to residents, we have seen strong buy-in, showing the demand — and need — for fin-tech solutions that bolster their financial health.

Fostering Respect & Collaboration

We value our employees and ensure that each individual can achieve their full potential by fostering a culture of respect, inclusivity, and diversity. By creating equal opportunities for all employees, we have built a stronger business that is poised to serve our customers and communities. Through important partnerships, employee engagement, and benefits that include access to family, financial, and mental health support, we strive to create safe spaces and opportunities, regardless of identity, nationality, or beliefs.

Supporting the Community

Every year, we enhance our commitment to support our communities through sponsorships, donations, partnerships, and volunteering. We are proud to have team members across the organization who actively support important organizations and causes that align with our three social impact pillars:

CHILDREN
& FAMILIES

HEALTHY
COMMUNITIES

DIVERSITY, EQUITY
& INCLUSION

Employer-Supported Volunteerism

Our teams have always shown a passion for community causes, dedicating their time and resources to help various instrumental groups outside of work.

 

In Q4 2023, we launched a new Employer-Supported Volunteerism (ESV) initiative to provide more time and opportunities for our employees to make a positive impact alongside other Avenue Living team members during work hours.

 

Within the first three months, our employees donated over 160 hours of recorded volunteer time to community organizations. This initiative supported 10 distinct organizations across the Prairies, including local food banks, Canadian Blood Services, veteran and seniors’ resource centers, community kitchens, and drop-in centers.

Avenue giving

In the face of escalating food bank usage, our steadfast commitment to improving the health and wellness of communities and supporting children and families remained strong.

 

Together with our residents, we raised 7,193 pounds of food. By providing a convenient platform for our teams and residents to come together and give back, we continue to build meaningful relationships and make a real impact through our contributions. This achievement spanned across 18 locations, showcasing our communities’ widespread reach and collective generosity.

Learn More on Our Social Page

Avenue Living conducts business with integrity, honesty, and transparency. We have established policies and procedures to reduce risk and effectively handle various business scenarios. As custodians of capital and responsible building owner-operators, we recognize the importance of applying top-tier governance practices throughout our operations to safeguard the best interests of our investors.

Ethics

Avenue Living adheres to a comprehensive Code of Business Conduct with ethical standards to guide our decision-making.

 

This code communicates expected employee behavior and compliance with laws, promotes professionalism and deters misconduct.

Along with our commitment to ethical practices, Avenue Living provides a mechanism for confidentiality to address any complaints related to ethics, law violations, accounting, internal controls, auditing, fraud, or non-compliance. Each of our funds’ boards has adopted a Whistleblower Policy to facilitate secure reporting and a culture of openness without fear of discrimination, retaliation, or harassment, whether reported anonymously or otherwise.

Security

Our cybersecurity policy is designed to enhance the security of our digital infrastructure. This proactive measure reflects our commitment to safeguarding our customers and stakeholders while maintaining their trust. By prioritizing security, we aim to mitigate potential risks and ensure the resilience of our operations in an increasingly digital landscape.

Affiliations

We have strong relationships with industry-leading organizations that bolster our commitment to delivering stable results, making conscientious decisions, and creating safe and welcoming environments for our team and customers.

Independent Board Members

Samira Alibhai

Managing Principal, Mirada Investments Ltd.; Managing Director, LLS Hospitality, Inc.

Dr. Brian Brodie

Chairman of the Board, Mini Mall Storage Properties Trust; Physician; Past Chair, Board of Directors, Canadian Medical Association; Former President, Doctors of B.C.

Jack Coldwell

Chartered Professional Accountant; Former Board Member, Calgary Heritage Foundation

Catherine Connolly

Founder and President, Gist Capital Solutions Inc.; Past Chair of Institute of Corporate Directors (Calgary Chapter); Former Chair of Alberta Teachers’ Pension Plan Investment Committee

JT Dhoot

Founder and Principal, Omnis Valuations and Advisory Ltd.

John Fisher

Executive Vice President, CBRE

Dave Guichon, KC

Chairman of the Board, Tract Farmland Partners; Senior Partner, Norton Rose Fulbright Canada LLP; Former Vice President Law, Alliance Pipeline Group; Former CEO, Beauvert Gas Services Ltd.

Catriona Le May Doan

President and CEO, Sport Calgary

Salima Shivji

Inaugural Executive Director, Movement 51; Former Senior Associate, Dentons Canada LLP

Robert Verbuck

Chairman of the Board, Avenue Living Real Estate Core Trust; Managing Partner Western Canada, DS Lawyers LLP

Brad Wall

Special Advisor to the Tract Farmland Partners Board Special Advisor, Osler, Hoskin & Harcourt LLP; Former Premier of Saskatchewan

Avenue Living Real Estate Core Trust

Mini Mall Storage Properties Trust

Tract Farmland Partners

Avenue Living Agricultural Land Trust

Learn More on Our Governance Page

Operating Platforms

Avenue Living
Asset Management

Avenue Living
Communities

Mini Mall
Storage Properties

Operating Platforms

Avenue Living Asset Management

Avenue Living Communities

Mini Mall Storage Properties

Our Funds

Core
Trust

Mini Mall Storage
Properties Trust

Farmland

Opportunity
Trust

Our Funds

Core
Trust

Mini Mall Storage
Properties Trust

Farmland

Opportunity
Trust

Our Portfolio

Interactive Map

Hover or tab over a state or province to see the number of properties managed by Avenue Living

This report has been prepared for informational purposes only.  It does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction and it does not, and is not intended to, provide any financial, legal, accounting, or tax advice or counsel and must not be relied upon in that regard. This report is not to be distributed, reproduced, or communicated to any third party without the express written consent of Avenue Living Asset Management Ltd. 

 

Certain information set forth in this report may contain “forward-looking information” under applicable securities legislation. Such forward-looking statements may include, without limitation: expansion plans for the Avenue Living Group and its business and projects; execution of the Avenue Living Group’s vision and growth strategy; and sources and availability of third-party financing for the Avenue Living Group’s projects. Forward-looking statements are based on a number of assumptions, including without limitation: expectations about general economic conditions and conditions in the real estate markets where the projects are located or where the Avenue Living Group operates; expectations about the ability to raise sufficient funds to complete business objectives; and expectations about the Avenue Living Group’s ability to continue to execute on its business plans.  Although forward-looking statements contained in this report are based upon what management believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.  Management undertakes no obligation to update any such forward-looking statements if circumstances or management’s estimates or opinions should change, except as may be required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Past performance is not a guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance or any other factor mentioned in this report.

 

Avenue Living Asset Management Ltd. accepts no liability for any loss arising from the use of the information contained herein.  Information, opinions or statistical data contained herein was obtained or derived from sources believed to be reliable, including from third-party sources, but Avenue Living Asset Management Ltd. does not represent that any such information, opinion, or statistical data is accurate or complete, and they should not be relied upon as such. All estimates and opinions expressed herein constitute judgements as of the date of this report and are subject to change without notice. Avenue Living Asset Management Ltd. may have prepared certain information internally using proprietary analysis (unaudited).

 

The properties discussed in this report are not indicative of the full portfolio of properties held by the Avenue Living Group and there is no guarantee that future acquisitions will be comparable to the properties presented or will have similar results.

This report has been prepared for informational purposes only.  It does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction and it does not, and is not intended to, provide any financial, legal, accounting, or tax advice or counsel and must not be relied upon in that regard. This report is not to be distributed, reproduced, or communicated to any third party without the express written consent of Avenue Living Asset Management Ltd. 

 

Certain information set forth in this report may contain “forward-looking information” under applicable securities legislation. Such forward-looking statements may include, without limitation: expansion plans for the Avenue Living Group and its business and projects; execution of the Avenue Living Group’s vision and growth strategy; and sources and availability of third-party financing for the Avenue Living Group’s projects. Forward-looking statements are based on a number of assumptions, including without limitation: expectations about general economic conditions and conditions in the real estate markets where the projects are located or where the Avenue Living Group operates; expectations about the ability to raise sufficient funds to complete business objectives; and expectations about the Avenue Living Group’s ability to continue to execute on its business plans.  Although forward-looking statements contained in this report are based upon what management believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.  Management undertakes no obligation to update any such forward-looking statements if circumstances or management’s estimates or opinions should change, except as may be required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Past performance is not a guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance or any other factor mentioned in this report.

 

Avenue Living Asset Management Ltd. accepts no liability for any loss arising from the use of the information contained herein.  Information, opinions or statistical data contained herein was obtained or derived from sources believed to be reliable, including from third-party sources, but Avenue Living Asset Management Ltd. does not represent that any such information, opinion, or statistical data is accurate or complete, and they should not be relied upon as such. All estimates and opinions expressed herein constitute judgements as of the date of this report and are subject to change without notice. Avenue Living Asset Management Ltd. may have prepared certain information internally using proprietary analysis (unaudited).

 

The properties discussed in this report are not indicative of the full portfolio of properties held by the Avenue Living Group and there is no guarantee that future acquisitions will be comparable to the properties presented or will have similar results.

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