What is the “Plus” in A+ REIT?

Jan 11, 2024

A+ REIT stands as our flagship, stabilized private multi-family Real Estate Investment Trust (REIT) formed to deliver recurring, stable cash distributions to high net worth and institutional investors.

DECODING THE “PLUS” IN A+ REIT

People often will ask us, “What is the “Plus” in A+ REIT?” Below are some of the main characteristics offered by A+ REIT that we feel embody what the “Plus” means to our investors.

Private Market Diversification: Performance Aligned with Real Estate Dynamics

The “Plus” symbolizes an infusion of private diversification into your investment portfolio. Unlike public equity and bond markets, A+ REIT shields your investment from day-to-day market volatility. Quarterly Net Asset Value calculations can provide more stability and reduce concerns about abrupt drops in your investment’s value.

Valuations and returns from private REITs, including A+ REIT, are more closely correlated with the underlying performance and appraisals of the real estate held within the portfolio. This intrinsic link ensures a more stable and predictable investment environment.

Being managed by a trusted and professional team, A+ REIT can offer a compelling diversification value proposition. With a track record for success, this management team adds an extra layer of assurance for investors venturing into the alternative asset class.

Newly Built Apartments = A Better Tenant Experience

An investment in A+ REIT not only provides investors access to the attractive multi-family real estate market but also ensures that the portfolio in which they are investing is one of the newest in Canada. The average age of all our apartment real estate help in the portfolio is under 5 years old!

What benefits does investing in a newly-built portfolio offer our investors? We firmly believe that by enhancing the tenant experience in our rental communities, we create a more stable investment environment for our investors. Newly built real estate offers modern amenities, higher building energy efficiencies, and improved security, to name a few, resulting in higher quality and more stable tenants.

From an operations perspective, this often means these buildings are less capital-intensive, as they do not have significant deferred maintenance projects, and building systems can often still fall under warranties.

Real Cash Distributions with Tax Efficient Treatment

Investors in A+ REIT benefit from a REIT’s tax-efficient structure in that the income that is paid out to its investors as distributions is treated generally as Return of Capital, meaning it is not taxed as income.

A+ REIT pays quarterly distributions to its investors and targets an annual distribution yield of 3-4%. For those investors who do not need the cash, the REIT also offers a Distribution Reinvestment Program (DRIP) where investors can reinvest their distributions into additional REIT units at a 3% bonus.

The 2023 Blackrock Alternatives Global Private Markets survey noted that 82% of survey respondents from institutional investors indicated that income generation was one of the most important factors driving their allocation to private markets. P3 is proud to offer our investors access to the type of real cash-generating assets that global leading asset managers are looking to increase their allocations to.

FOR MORE INFORMATION ABOUT A+ REIT, PLEASE CONTACT TOM TONI, ASSOCIATE VICE PRESIDENT, REAL ESTATE CAPITAL FOR PRIVATE PENSION PARTNERS INVESTMENTS.

Tom Toni
Associate Vice President, Real Estate Capital
E: Tom@privatepensionpartners.com

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