Centurion Announces Strategic Growth Initiative: Offering 2% Non-Dilutive Discount on Net Asset Value for New Subscribers
As at Monday June 3, 2024 trade date, Centurion Apartment Real Estate Investment Trust (REIT) will be offering a 2% non-dilutive discount to Net Asset Value (“NAV”) for all new subscriptions up to and including August 1, 2024, or until our targeted allocation of $200,000,000 is reached. Centurion Asset Management Inc. will pick up the cost of this discount by waiving asset management fees for a period of two years on the capital raised.
Commenting on this recent initiative, Greg Romundt, Centurion President and CEO stated:
“Since early last year we have been messaging that we believed that there was going to be a window to execute on new opportunities for growth, but that we did not know when that time would come.
While we waited for the start of the next market cycle, we focused on executing on more recent purchases, and driving operational results, which have been exceptionally strong as the following portfolio metrics as at Q1 2024 demonstrate:
- Property Operating Revenues increased by 11.00%
- Same Store Net Operating Income ratio increased to 64.21% from 61.90%
- Same Store Operating Revenues increased by 6.82%
- Stabilized property occupancy rates of 98.71%
- Normalized Funds from Operations increased by 34.60% to $0.35/unit
On the acquisition front, we completed and closed on transactions we already had under contract or that were tuck ins to existing holdings and/or strategic in nature, patiently waiting for the window we believed was going to open.
We believe that window is now opening as we anticipate that the Bank of Canada will start cutting interest rates within the next month or two. Governments at all levels have announced incentives to develop new multi-family apartments to meet the dramatic housing shortage in Canada and new housing units which developers were building during the past few years.
To take advantage of this window of opportunity, we plan to be ready with the capital to execute in a market which we believe will have reduced competition, at least for a while. Just like in early 2020, when COVID began, we waited patiently with capital and then moved aggressively once the governments began to shower the economy with money as we knew that this would send inflation, rents, and values higher. It did.
We believe that recent government initiatives to get capital to the rental industry for new construction will be one of the best opportunities to grow in a business we’ve spent more than 10 years putting ourselves in the prime seat for new construction apartments.
Centurion is a leader in lending to and investing equity in new developments and buying the finished product. It has been and remains our view that we will see more apartments built in the next decade than have been built in the last two generations, but it will still not be enough. As such, we believe Centurion will win from both owning buildings in a rising rental environment and from is lending and joint venture investments.”
Advisors: If you have any questions or require further clarification, please reach out directly to your wholesaling team.
Investors: If you have any questions or require further clarification, please reach out directly to your investment advisor.