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Opportunity to invest in one of the fastest growing economies in Canada with the dominant player in the northern Canadian real estate market.
Unique REIT opportunity
• Strong economic environment in northern Canada
- Economy driven by oil and gas exploration and production, diamond and gold mining, government administration and tourism.
- Substantial GDP growth and high per capita income.
- NWT has the highest per capita GDP in Canada, GDP grew by 8.8% in 2000 and 20% in 2001.
- Nunavut’s per capita GDP exceeds the Canadian average.
• NPR REIT is the dominant player in northern Canada and there are significant structural impediments to new competition.
Strong real estate fundamentals
• Shortage of rental housing in NPR’s primary markets of Yellowknife, NWT and Iqaluit, Nunavut and significant barriers to entry have resulted in strong and growing rental rates.
• Cashflows supported by credit worthy tenants such as government and large corporations - 58% of revenues from leases to Federal and Territorial governments and large corporations.
• Higher capitalization rates, in combination with CMHC guaranteed financing, offers significant positive spread investing opportunities.
Stable and growing cashflows
• Normalized adjusted funds from operations exceed cash distributions at 90% payout ratio.
• Occupancy rates close to 100% for the last 10 years.
• Stable income from high quality tenants and predictable operating costs.
• Low capital investment requirements – properties well maintained and relatively new.
Opportunities for growth
• Unique opportunity to consolidate a fragmented industry, create value through leveraging management’s expertise and gaining economies of scale.
• Strategic alliance with one of northern Canada’s leading developers, provides a pipeline of further acquisition opportunities.
Management team
• Internal asset and property management.
• Management and Trustees to hold a significant stake in the REIT of approximately 14%.
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