Message from the CEO
Dear Unitholders,
Transitioning through the high-interest rate environment of the past two years, All Island Equity REIT’s (“All Island REIT”) Management remained conservative and patient with respect to increasing Assets Under Management (“AUM”). Now that the Bank of Canada has implemented successive interest rate cuts, opportunities for accretive acquisitions are once again emerging for All Island REIT.
In 2025, Management will leverage All Island REIT’s position in desirable lifestyle communities by delivering a high-quality residential rental experience, to maximize value per Unit returns for our unitholders. While All Island REIT continuously evaluates acquisition opportunities, Management is more intently focused on driving internal improvements and making exceptional capital allocation decisions. By maximizing value per unit through internal growth, All Island REIT will achieve AUM growth faster in the long run and be well- positioned to take advantage of opportunistic acquisitions over the coming years. In a time of political and economic uncertainty, Management is focused on providing stability to our unitholders.
As a result of the operational efficiencies implemented, as well as increased revenue from strategic capital initiatives, the portfolio has increased in value during the year. The Board has determined it is prudent to adjust the Net Asset Value per Unit to $17.74 as of December 31, 2024. This represents a 12.14% trailing twelve-month total return on Class F DRIP Units and a 10.16% annual return since inception.
Appraisal and Audit Update
Management received the 2024 third-party appraisals for the portfolio in late December, the results of
which were positive. The third-party appraisals are currently being reviewed as part of the year-end audit. Following the completion of the audit in March 2025, the Board will review adjusting the Net Asset Value per Unit to reflect final audited appraised values.
Acquisition Update
Leveraging a period in the market when buyers were scarce and interest rates were dropping, Management secured two properties under contract this fall. Located in the Comox Valley, both properties will increase our presence in the Courtenay and Comox markets. This will allow All Island REIT to gain operational efficiencies through continued concentration of our portfolio within the Comox Valley.
The first property is a two-building, 92-suite, multi-family property in Courtenay that is scheduled to close in mid-January 2025. The second is a 74-suite, multi-family property in Comox, presently under due diligence review by Management that is scheduled to close in April 2025, provided conditions are waived. Management is excited to have secured both properties under contract and is looking forward to adding both to the portfolio