PV, Mit & Jeff
Yesterday we covered the five stories shaping Canadian real estate. Today we're going inside our own buildings. This is what value add real estate actually looks like: the renovation process, the economics, and the numbers behind every unit turnover in our portfolio.
I owned two rental properties for 8 years. By the end I was exhausted. Tenant issues, maintenance calls, mortgage stress. I sold them and moved the capital into FCPRET. Same exposure to real estate, similar returns, zero involvement. Best financial decision I've made in the last decade.
average rent increase on unit turnovers across our portfolio in 2025. That's the gap between what a tenant was paying and what the market now supports. Every time a unit turns over, we capture that gap through renovation and repositioning.
Every unit in our portfolio is an opportunity to increase net operating income. We actively work to create turnovers, because units with outdated finishes and below market rents are the biggest drag on building performance. When a unit turns over, we execute a targeted renovation that repositions it at current market rates. That's how we drive NOI growth across the portfolio.
We are not building condos. We are making clean, modern, functional apartments that command market rent. New flooring, updated kitchens, fresh paint, modern fixtures, in unit laundry where possible. The goal is fast stabilization: get the unit market ready, leased, and cash flowing as quickly as possible. Every day a unit sits empty is lost revenue.
Across our portfolio in 2025, the average rent increase on unit turnovers was 25.7%. Units that were renting for $600 to $900 per month now rent between $1,600 to $1,800 per month after renovation. That rent lift is permanent. It compounds every month for as long as the unit is occupied. And when that tenant eventually leaves, the cycle repeats at the new market rate.
The renovation work doesn't just increase monthly cash flow. It drives the appraised value of the entire building. On average, every turnover increases a building's value by $200,000 to $250,000. Even just 10 turnovers across the portfolio is an increase of over $2.5 million in asset value. This is how passive real estate investing compounds: higher rents lift NOI, higher NOI lifts building value, higher value unlocks refinancing capital for the next acquisition.
Once a building is stabilized (typically 18 to 36 months after acquisition), we refinance at the higher appraised value with CMHC insured debt. That releases equity back into the fund. We redeploy that capital into the next acquisition. Buy, Renovate, Rent, Refinance, Repeat. It's not flashy. But it works. And every cycle compounds the portfolio's income and value for our investors.
Purpose-Built Rentals · CMHC Financing + GST Rebate Eligible
Government Grants + De-Risked Capital Stack
Targeted Returns: 24% to 27% Annualized
Wed, Apr 2: U.S. "reciprocal" tariff deadline. 25% on all auto imports takes effect. Watch for Canadian retaliation.
Fri, Apr 4: Canada employment data for March. If jobs soften, expect the BoC to cut in April.
Ongoing: Ontario HST rebate on new homes takes effect April 1. We are tracking how this impacts builder sentiment and starts data.
Catch this week's live session where we break down what's happening in the market and inside our portfolio. Watch it here or save it for later.
Cash-Flowing Apartment Buildings · Southwestern Ontario
Targeted Total Return: ~15%
Distributions: 7% Annualized, Paid Monthly
"I owned two rental properties for 8 years. By the end I was exhausted. Tenant issues, maintenance calls, mortgage stress. I sold them and moved the capital into FCPRET. Same exposure to real estate, similar returns, zero involvement. Best financial decision I've made in the last decade."
Want to see the actual renovation photos from our buildings? Or curious about the unit economics in your city? Reply to this email. We read every response.
To your success,
PV, Mit & Jeff
P.S. Tomorrow we're covering the April 2 tariff deadline and what it means for Canadian construction costs, developer exits, and why the supply crunch is getting worse. Don't miss it.
