Northern Property Real Estate Investment Trust ("NPR", the "Trust", or the "REIT") owns and operates rental real estate in secondary markets in Canada. NPR has significant multi-family residential real estate investments in Alberta, a growing position 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. NPR's income producing portfolio is primarily residential including multi-family apartment rental units and furnished execusuites. NPR also has a portfolio of commercial buidings focused on government tenancies predominantly located in Canada's far north.
NPR works in six diverse regions of Canada: Nunavut, the Northwest Territories, Newfoundland and Labrador, Alberta, British Columbia and Saskatchewan. NPR focuses on acquiring property in regions that are naturally wealthy or have the potential of becoming so. NPR is engaged in northern areas where growth rates are generally higher and competition more restrained than in the metropolitan areas.
The REIT's primary business is providing rental residential property to Canadians in these carefully selected communities. Our definition of housing is broad. NPR owns and operates rental apartments and townhomes. We are a significant provider of housing to government and corporations, which sublet our units to their staff. We provide furnished executive-suite 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 convenants and long-term leases.
Exposure to Canada's Natural Resource Economy
NPR's cities and towns 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 2011 was 47.8 percent. The 2011 Funds From Operations payout ratio was 65.3 percent.