Performance figures for each account are calculated using time weighted rate of returns on a daily basis. The Composite returns are calculated based on the asset-weighted monthly composite constituents based on beginning of month asset mix and include the reinvestment of all earnings as of the payment date. Composite returns are as follows:

Part 2: 2022 Virtual Strategic Outlook Q&A Responses


By Mark Hannah

On March 1, we hosted our 2022 Virtual Strategic Outlook eventA Tale of Two Perspectives.

We were fortunate to have many excellent questions posed for our Q&A session but could not answer them all due to time constraints. The following are Managing Director, Nicola Wealth Real Estate, Mark Hannah’s responses to some of the questions we received.

How will rising interest rates and high real estate valuations (housing) plus COVID’s impact on office demand affect returns?

Higher interest rates will usually have an impact on any investment, including real estate.  A key for our funds is to ensure we structure our leases to provide for annual growth to offset any impact of rising rates.  In regard to COVID, our portfolio weathered the storm with 98% rent collection.

What do you see as the effect of legislation prohibiting foreign ownership of residential real estate?

This is not great for condo developers, but they historically only sell, roughly, 5-7% to true foreign owners so it does not typically make a big impact.  The restriction of sales to foreign owners favours local consumers providing more choice and better pricing.

What can the City of Vancouver do to reduce permit times?

This appears to be a huge issue for all developers.  We feel the province needs to help the municipalities invest in more people to help speed up approvals to cut the red tape and long delays.   This investment is how we get more supply to the market and create more jobs.

Is the market east of Montreal too small for Nicola to consider?

We have not ruled out investing in markets further east, such as the Maritimes.  However, for the time being, we are concentrating on major markets in the east, such as Montreal and Ottawa and some strong secondary markets.

You seem to be acquiring real estate at a fast pace – any concerns with due diligence at that pace?

In 2021 we completed a high volume of acquisitions.  We are fortunate in that we have a very deep bench of experienced specialists to execute on the due diligence.

 

This material contains the current opinions of the author and such opinions are subject to change without notice. This material is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Nicola Wealth is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required provincial securities commissions.