Unit 3 at 57 Oliver was renting at $881 a month. Tenant moved out April 30. Renovated, re-leased at $1,675, occupied by May 12. That is a $794 monthly lift on a $15,000 capex spend, and roughly $173,000 of additional building value. Here is the day by day playbook.
PV, Mit & Jeff
Every turnover inside FCPRET is a small underwriting decision. Most never make the headlines, but they are the operating engine behind the 7% distribution and the 8% appreciation. Here is one, from start to finish.
A long term tenant in unit 3 at 57 Oliver Street in London gave their 60 days notice at the end of February. They had been in the unit for years, paying $881 a month. Ontario rent control kept their lease well below where the market had moved over the same period. A solid tenant. A long lease. A rent that had not caught up to reality in a long time.
Two months later, on April 30, they handed back the keys. Twelve days after that, on May 12, a new tenant was in the unit paying $1,675 a month. The same square footage. The same building. The same neighborhood. A $794 a month lift on a single unit. Roughly a 90% rent increase on turnover.
Nothing about that turnover was lucky. It was the result of the operating playbook we have refined across hundreds of these decisions. Today we are walking you through exactly what happened, day by day, so you can see how a routine event inside a building turns into the appreciation and the distribution that lands in your account.
Notice received.
Tenant gives proper 60 day notice. Our property management team immediately schedules an internal walk through and starts the market re-pricing analysis on the unit. The renovation budget is drafted that same week.
Trades booked.
Painter, flooring, plumber, and electrician scheduled in sequence for the week the tenant leaves. Materials ordered. Full kitchen update, bathroom renovation, new flooring throughout, fresh paint, modern fixtures. Total capex budgeted: ~$15,000. The scope reflects how far behind the unit had fallen on a 12 plus year tenancy.
Listing goes live.
Unit advertised at $1,675 a month, $325 above the outgoing rent. The listing emphasizes the building's location, the renovation in progress, and a clean move in date of May 1. Showings booked for the week of the renovation.
Keys back.
Tenant moves out on schedule. Final walk through completed the same afternoon. Unit photographed for the file. By that evening the trades are already on site.
Renovation completed in eight days.
Full kitchen refit, new bathroom, new flooring throughout, fresh paint, modern light and plumbing fixtures, deep clean. The unit goes from a 12 plus year tenancy with deferred refresh to a fully modernized rental that competes with new builds in the neighborhood. Capex lands inside the $15,000 envelope.
New tenant moves in at $1,675 a month.
Lease signed before the unit was even finished. Move in coordinated, deposits collected, keys handed over. Total vacancy: 12 days from keys back to keys handed back out. The unit is back to producing income, this time at a market clearing rent.
Operations make the unit happen. The math is what makes it matter on your statement.
One unit. One month. One re-lease. It looks small. But this is what happens inside the FCPRET portfolio across eight buildings and hundreds of units in southwestern Ontario. Tenants move. Renovations happen. Leases reset to market. NOI grows.
That growing NOI is what feeds the quarterly unit price update on FCPRET. It is also what funds the monthly distribution. It is also what MNP LLP audits annually. The same building, doing the same boring thing, again and again, is the entire investment thesis.
And it is also, in a way you do not usually see written down, the operational reason FCPRET has met the 15% targeted total return every year since inception.
Subscribe to FCPRET between now and Canada Day and we add 2% bonus units to your position. On a $100K subscription, that is roughly 149 additional units, worth about $2,000 at current pricing. Those bonus units earn the same 7% monthly distributions and 8% appreciation as the rest.
Eight Stabilized Apartment Buildings · Southwestern Ontario
$10K Minimum · RRSP / TFSA / RESP / LIRA Eligible
Targeted Return: 15% Annualized (7% cash + 8% appreciation)
Wellington Towers (Dev Fund II) Tranche 1 is still open at the 24% targeted return for accredited and existing FC investors. Foundation Affordable Housing Fund I just launched for accredited investors with three classes of capital to match your mandate. Reply if either resonates and we will send the deck.
To your success,
PV, Mit & Jeff
P.S. The reason we write these Inside the Portfolio notes is that most private REITs ask you to trust the headline returns without ever showing you the work that produces them. We would rather show you. One unit at a time, one renovation at a time, one re-lease at a time. The 2% bonus expires Canada Day. The operating discipline does not. Reply FCPRET if you want one of us to walk you through a subscription this week.
