Northern Property Real Estate Investment Trust ("NPR") owns and operates rental real estate in secondary markets in Canada. NPR has significant multi-family residential real estate investments in Alberta, growing positions in British Columbia and Saskatchewan, and is the largest multi-family residential landlord in each of the Northwest Territories, Nunavut and the Province of Newfoundland and Labrador, and has recently entered in the Québec market. NPR's income producing portfolio is primarily residential which includes multi-family apartment rental units and a limited number of furnished execusuites and hotels. NPR also has a portfolio of commercial buildings focused on government tenancies predominantly located in Canada's far north.
NPR operates in seven diverse regions of Canada: Nunavut, the Northwest Territories, Newfoundland and Labrador, Alberta, British Columbia, Saskatchewan and more recently in Québec. NPR focuses on acquiring property in regions that are naturally wealthy or have the potential of becoming so. NPR is engaged in northern and secondary areas of Canada where growth rates are generally higher and competition more restrained than in the metropolitan areas.
NPR's primary business is providing residential rental property to Canadians in these carefully selected communities. Our definition of housing is broad. NPR owns and operates rental apartments, town homes and mixed use properties. NPR is a significant provider of housing to government and corporations, which sublet our units to their staff. NPR also provides furnished executive-suite and hotel accommodation in selected locations.
In addition, NPR has a portfolio of commercial properties primarily located in its northern communities. Our commercial property most often involves government or corporate covenants and longer-term leases.
Exposure to Canada's Natural Resource Economy
NPR's cities and town are multi-faceted economically and often have an important natural resource component. Our properties are in communities which have leadership positions in oil, natural gas, diamonds, forestry products or agriculture. The communities in which we invest are filled with people who produce the commodities for which Canada is famous. NPR embraces the great Canadian resource economy.
The Trust operates on a financially prudent basis. NPR's debt to the Fair Market Value of its assets at year end was 45.0 percent. The 2013 Funds from Operations payout ratio was 68.0 percent, excluding Stapled Unit current income tax.