Since the launch of the Avenue Living Agricultural Land Trust (ALAL) in 2016, the case for investing in farmland has become even more clear. From inception, ALAL has grown to manage $200.7 million in assets in Saskatchewan, which is home to more than 40% of Canada’s cultivated farmland. ALAL’s tenant farmers produce a range of crops, including grains, pulses, and canola — basic staples that meet robust global demand. To replicate our success in the agricultural space, we launched a new fund in late 2022, Tract Farmland Partners LP (Tract), which has grown to $16.2 million in assets under management. Tract provides investors with another opportunity to benefit from Avenue Living’s experience investing in Saskatchewan farmland.Â
COMBINED FARMLANDASSETS UNDER MANAGEMENT
$0M
Farms
0
COMBINED ACRES UNDER MANAGEMENT
0K
Annualized return SINCE INCEPTION
0%
*(Class A – Avenue Living Agricultural Land Trust)
Note: Returns net of fees, inclusive of reinvestment of distributions. Figures presented for the year ended December 31, 2023
Investment Strategy
Initiated in 2016 and 2022, respectively, ALAL and Tract provide investors with the opportunity to participate passively and indirectly in the consolidation of farmland in Saskatchewan. The two funds will seek to generate returns for investors via the capital appreciation and leasing of the portfolio of land holdings, as well as through value-add capital improvements and the strategic use of leverage.
2016
Inception of Avenue Living Agricultural Land Trust
2022
Inception of Tract Farmland Partners
“Despite the challenge of rising interest rates, Saskatchewan farmland prices have continued to rise, underlining the strong appeal of farmland investing. We have also seen a sustained interest from our tenants in expanding their farm businesses. This is driven by healthy commodity prices and economies of scale.
In 2023, we successfully grew our Tract portfolio, adding 3,379 acres of arable Saskatchewan farmland, and we continue to see more opportunities for expansion with a substantial pipeline of acres under contract. We’ve benefited from our strong track record in the space, identifying acquisitions through word-of-mouth referrals in the farming community, which speaks to our position as trusted partners. These referrals have resulted in the addition of acres to the portfolio in areas where we had an existing presence”.
– Leif Snethun
CEO, Avenue Living Agricultural Land Trust & Tract Farmland Partners LP
Returns
C$180,000
C$160,000
C$140,000
C$120,000
C$100,000
2017
2018
2019
2020
2021
2022
Calendar
Returns
2019
0%
2020
0%
2021
0%
2022
0%
Annualized Returns
1 Year
0%
3 year
0%
5 year
0%
Inception
0%
Note: Fund returns are based on Class F Trust Units. Figures presented as at September 30, 2023
Fund Returns
C$220,000
C$200,000
C$180,000
C$160,000
C$140,000
C$120,000
C$100,000
2016
2017
2018
2019
2020
2021
2022
2023
ALAL CALENDAR RETURNS
Class A
2020
16.12%
2021
18.04%
2022
19.69%
2023
12.61%
ALAL Annualized Returns
Class A
1 Year
12.61%
3 Year
16.74%
5 YEAR
16.24%
SINCE INCEPTION
12.28%
Note: Returns net of fees, inclusive of reinvestment of distributions. Figures presented for the year ended December 31, 2023.
Fund Returns
C$220,000
C$200,000
C$180,000
C$160,000
C$140,000
C$120,000
C$100,000
2016
2017
2018
2019
2020
2021
2022
2023
ALAL CALENDAR RETURNS
Class A
2020
16.12%
2021
18.04%
2022
19.69%
2023
12.61%
ALAL Annualized Returns
Class A
1 Year
12.61%
3 Year
16.74%
5 YEAR
16.24%
SINCE INCEPTION
12.28%
Note: Returns net of fees, inclusive of reinvestment of distributions. Figures presented for the year ended December 31, 2023.
Fund Returns
C$220,000
C$200,000
C$180,000
C$160,000
C$140,000
C$120,000
C$100,000
2016
2017
2018
2019
2020
2021
2022
2023
ALAL CALENDAR RETURNS
Class A
2020
16.12%
2021
18.04%
2022
19.69%
2023
12.61%
ALAL Annualized Returns
Class A
1 Year
12.61%
3 Year
16.74%
5 YEAR
16.24%
SINCE INCEPTION
12.28%
Note: Returns net of fees, inclusive of reinvestment of distributions. Figures presented for the year ended December 31, 2023.
This property presented the opportunity to increase farming efficiency and update field size to align with current agricultural practices. This improvement makes the property more attractive to current and prospective tenants, allowing them to operate the land and their machinery more efficiently, resulting in lower operating costs for the tenant while increasing their yield.
TODAY
What We Did
We broke ground on a project that will remove over 140 kilometres of tree rows, allowing tenants to save time and fuel when farming the land. The rows are being returned to farmable acres through a combination of work, including chain saws, CATs, mulching, and roto-tilling. The project investment totals nearly $400,000 as of Dec 31, 2023, and is approximately 50% complete. The progress has positively improved the tenant’s overall economics and the total property value. The added value will be reflected at lease renewal time and is expected to result in higher rental revenue.