Time to Value Development

Jenny Ma, Canadian Real Estate Analyst, and Gaurav Mathur, Real Estate/REITs Special Projects Analyst. Development and intensification activities have become increasingly important for Canadian retail REITs as they look for new avenues to drive growth amid ongoing challenges facing bricks-and-mortar retail. Development is a relatively new component of REIT strategies, however, with a number of projects at or near completion, combined with improved disclosures on individual projects, costs, and returns, it’s time to start giving credit for development activities. We created a proprietary framework which allows us to use a consistent methodology to value individual REIT development projects, which in many cases is incremental to NAV. We expect the development theme to remain topical as many Canadian REITs look for value-add opportunities to unlock growth. BMO clients can view our report, “Time to Value Development”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/910777bc-8f02-4af0-8029-4d777977242f/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/