PV, Mit & Jeff
Canada's best 1-year GIC pays 3.65%. Inflation is running at 2.3%. That leaves you with a real return of 1.35%, or $135 on a $10,000 investment. Meanwhile, FCPRET has targeted a ~15% total return since inception, and has historically met or exceeded that number. On the same $10,000, that's $1,500. The vehicle you choose changes everything
A savings account preserves your capital. It doesn't grow it. At 1.35% real return, you're running in place. The question is whether you're comfortable standing still.
This isn't about taking on more risk. It's about understanding where real returns actually come from, and why your bank's best offer barely keeps you above water.
FCPRET's targeted ~15% total return isn't a single lever. It's two working together. The first is 7% annualized distributions, paid monthly. That's real cash flow deposited into your account every 30 days. The second is ~8% in property appreciation, driven by rising rents, mortgage paydown, and professional value-add management across our apartment portfolio in Southwestern Ontario.
A GIC gives you one number: the interest rate. And right now, that number barely stays ahead of inflation. FCPRET gives you income and equity growth. Since inception, we've consistently met or exceeded our 15% targeted return. That's not a projection. That's a track record.
Cash-Flowing Apartment Buildings · Southwestern Ontario
Targeted Total Return: ~15% (7% income + ~8% appreciation)
Distributions: 7% Annualized, Paid Monthly
Most Canadians park their capital in a savings account or GIC because it feels safe. And it is safe, in the sense that you won't lose your principal. But safety has a cost. With the Bank of Canada holding its overnight rate at 2.25% and GIC rates trending down, the window to lock in even 3.65% is closing. The big banks are already offering 1-year terms below 3%.
Meanwhile, people still need apartments. Vacancy in Southwestern Ontario is under 2%. Rents are climbing. Our buildings collect income every month regardless of what the Bank of Canada does. That's the difference between parking your money and putting it to work in essential infrastructure.
Your GIC doesn't appreciate. Your GIC doesn't pay monthly. Your GIC doesn't benefit from rising rents or mortgage paydown. It just sits there, barely keeping pace.
Purpose-Built Rentals · Build-to-Core, 4-Year Horizon
CMHC Financing + Government Grants
Targeted Returns: 24% to 27% Annualized
The Bank of Canada's next rate decision is March 18. Markets expect a hold at 2.25%. If rates stay flat, GIC yields have nowhere to go but down as current terms mature and reset lower. Meanwhile, rental demand continues to tighten. Tomorrow we'll look at what Q1 construction data is telling us about future supply.
Every month your capital sits in a savings account, inflation chips away at its purchasing power. FCPRET offers a different path: 7% monthly distributions plus ~8% appreciation, for a targeted total return of ~15% that we've historically met or beaten since inception. Same capital. Very different outcome.
To your success,
PV, Mit & Jeff
P.S. Your GIC earned you $135 on $10,000 last year after inflation. Our investors earned over 10x that. Want to see the full comparison? Just reply to this email and say "interested" and we'll set everything up for you.
By the Numbers
