PV, Mit & Jeff
Two days ago, Morguard Corporation announced it's investing $1 billion into a $5 billion Canadian apartment portfolio managed by TD Asset Management. That's 106 properties. Over 15,500 units. And 19% of that portfolio sits in Southwestern Ontario, the same market where we operate every day. Here's why this validates exactly what we've been telling you
When the biggest institutional players in the country are writing billion-dollar cheques for apartments, it tells you something about where smart money sees the safest, most predictable returns.
When Canada's largest institutional players are deploying billion-dollar cheques into apartment buildings, it's not because they're speculating. It's because the math works and the fundamentals are undeniable.
Morguard isn't a speculative buyer. They're one of Canada's largest real estate companies, with $24 billion in managed assets after this deal. They already own and manage over 33,000 residential units across Canada and the U.S. When a company this size writes a billion-dollar cheque for Canadian apartments, they're not guessing. They've done the math.
And the math says the same thing we've been saying: Canadian multifamily fundamentals are strong. Morguard reported 7.4% average same-property NOI growth across their Canadian portfolio over the past four years. Sustained rental demand. Resilient operating fundamentals. That's their language, and it describes our portfolio just as well.
Here's the detail that jumped off the page for us: 19% of the Morguard-TD portfolio is concentrated in Southwestern Ontario. That's the second-largest geographic allocation in the entire $5 billion portfolio, behind only the Greater Toronto-Hamilton Area at 36%. It's ahead of Ottawa, Alberta, Quebec, and Nova Scotia.
This isn't a coincidence. Southwestern Ontario offers a combination that institutional capital loves: strong rental demand, vacancy under 2%, below-GTA acquisition costs, and operating margins that support reliable NOI growth. That's exactly the profile we've been building our portfolio around for years.
The difference? Morguard needs a billion dollars to get in. You don't.
Cash-Flowing Apartment Buildings · Southwestern Ontario
Targeted Total Return: 12 to 15%
Distributions: 7% Annualized, Paid Monthly
Morguard's billion-dollar bet and our Development Fund share the same thesis: purpose-built rental housing in high-demand Canadian markets is the most predictable, defensible real estate investment you can make. The demand is permanent. The income is controllable. And the institutional world is catching on to what we've known for years.
Wellington Tower is our version of this thesis at the development stage: 350 purpose-built rental units, CMHC-backed financing, government grants, and a 4-year build-to-core strategy that targets 24% to 27% annualized returns. While Morguard is buying stabilized assets at institutional prices, we're building them. That's where the outsized returns come from.
We started with 50 investor spots. 17 are already committed. 33 remain.
Purpose-Built Rentals · Build-to-Core, 4-Year Horizon
CMHC Financing + Government Grants
Targeted Returns: 24% to 27% Annualized
The Morguard-TD deal is expected to close in Q3 2026. We're watching how institutional capital continues to flow into Canadian multifamily. This isn't an isolated transaction. The next Bank of Canada rate decision is March 12, and the March CMHC rental market report will give us updated supply and vacancy numbers for Southwestern Ontario. All signs point to continued tightening.
You don't need a billion dollars to invest in the same asset class the institutions are lining up for. FCPRET gives you access to the same thesis: cash-flowing apartments in Southwestern Ontario, with 7% annualized distributions paid monthly and a targeted total return of 12 to 15%.
To your success,
PV, Mit & Jeff
P.S. Institutions are paying $5 billion for the same asset class you can access through FCPRET. Want to see how the numbers compare? Just reply to this email and say "interested" and we'll set everything up for you.
By the Numbers
