Canadian REIT sector performance

Canadian real estate investment trusts (REITs) have reported varying performance across the retail and residential sectors.

In the retail sector, Slate Grocery REIT reported significant growth in leasing activity, with new leases reaching rates 41% above average in-place rent. Management attributed landlord pricing power to limited new retail development and elevated construction costs. Similarly, Crombie REIT reported stable rental income driven by food-oriented shopping centers and mixed-use properties, maintaining moderate growth through long-term leases with anchor tenants.

In the residential sector, Killam Apartment REIT saw 3.0% same-property net operating income growth and 97.6% occupancy, noting that increased federal defense spending has bolstered economic activity in its markets. Conversely, Canadian Apartment Properties REIT (CAPREIT) has faced a 24% share price decline over the past year. While maintaining income from its suite portfolio, CAPREIT has navigated a softer rental environment and higher interest costs, alongside a slight dip in same-property occupancy to 97.5%.