PV, Mit & Jeff
Today marks one year since Trump's "Liberation Day" tariffs. Oil is at $105. The S&P is down 4% this month. Tariff policy has changed more than 50 times in 12 months. The Strait of Hormuz is effectively closed. Every headline is screaming uncertainty. So we thought today was the perfect day to show you what's actually happening inside our portfolio. This is what boring, predictable income looks like
This is what we mean when we say apartments aren't a trend. They're infrastructure. The world outside changes every day. Inside our buildings, the work is the same: collect rent, renovate units, grow NOI, pay investors.
units across our portfolio collected rent this month. On time. In full. While oil crossed $105, the S&P sold off, and tariff headlines dominated every news cycle. The rent cheque doesn't read the news.
First of the month. PAD withdrawals process overnight. By the time headlines start running about Liberation Day anniversaries and oil spikes, rent is already collected. Our property management team confirms: April collection is tracking at 98%+ across the portfolio. Same as March. Same as February. Same as every month for the past three years.
Contractors are on site right now. Three units getting the full treatment: flooring, kitchens, paint, fixtures. These units were renting between $600 and $900/month. When they're stabilized, they'll be listed between $1,600 and $1,800/month. Each turnover adds roughly $200,000 to $250,000 in building value. And that's just the renovation side. We just got approval to add 2 new units at 57 Oliver St, bringing the building from 12 to 14 units, creating immediate equity. On top of that, we've submitted a Site Plan Approval (SPA) at Oliver to take it to 24 total units. Based on early feedback from the municipality, we're expecting reduced development fees, making the economics even stronger. More units in the same building means higher NOI without acquiring a single new property. This work is happening while oil crosses $105 and people debate tariff policy on TV.
Our leasing team has twelve showings lined up across four buildings this week. Recently renovated units are generating multiple applications within 48 hours of listing. Demand for workforce housing in Southwestern Ontario hasn't slowed. Vacancy in our buildings remains under 2%. While the national vacancy rate has climbed to 3.1% (and luxury condo rentals in Toronto are sitting empty at 6%+), our units rent within days of being listed. Different product. Different market. Different result.
Mit's team is processing April investor distributions. 7% annualized, paid monthly, landing on the 15th. Same rate we've paid through 11 Bank of Canada rate changes, a trade war, an oil crisis, and 50+ tariff revisions. The distribution has never changed. Not once. Because it's backed by rent from real tenants in real buildings, not by anything that trades on a screen.
Purpose-Built Rentals · CMHC Financing + GST Rebate Eligible
Government Grants + De-Risked Capital Stack
Targeted Returns: 24% to 27% Annualized
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."
Fri, Apr 4: Canada employment data for March. If jobs soften further, the BoC has a clearer path to cut on April 29.
Mid-April: The "oil cliff." Analysts warn strategic petroleum reserves run dry around April 19 if Hormuz stays closed. Oil could spike sharply from here.
Apr 29: Bank of Canada rate decision. Markets pricing a hold at 2.25%.
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.
Want to see photos from our recent renovations? Curious about what a typical turnover looks like or how we source tenants? Reply to this email. We answer the best questions in Thursday's Investor Q&A.
To your success,
PV, Mit & Jeff
P.S. Tomorrow is Investor Q&A. Got a question about how we manage our buildings, how distributions work, or what makes our portfolio different? Reply to this email and we'll answer it in tomorrow's note.
