The Skyline Retail REIT just announced a 15% increase in the value of its Unit Price from $10.00 to $11.50 per Unit, and a 12.5% increase in the annual Distribution rate from $0.80 to $0.90 per Unit.
Made effective November 25th, 2015, these changes reflect the strong 2015 operational performance of the Skyline Retail REIT, its solid forecast for 2016, and the current market value of the portfolio.
The valuation process for the private Retail REIT’s Unit Value began with an evaluation of the REIT’s portfolio of assets. Next, the value of the outstanding debt (mortgages) was subtracted—leaving the total equity of the REIT. Lastly, the total equity was divided by the number of outstanding Units (currently held by Unitholders). The new unit value is a direct reflection of the actual value of the real estate.
For more information about how Skyline’s REIT Unit Values are calculated, and about these private investments in general, please see our FAQ page.
“While we are coming to the close of another exciting year of growth, we look ahead to further accretive opportunities in 2016,” said Jason Castellan, CEO and Co-Founder of the Skyline Group of Companies.
“We look forward to continued success, growth and opportunity in all three of Skyline’s REIT investment products.”
Launched in October 2013, the Skyline Retail REIT currently comprises 47 properties in 33 communities across Ontario, with more than 1.4 million square feet of commercial space. The REIT focuses on national brands as anchor tenants, such as Shoppers Drug Mart, TD Bank and Tim Hortons. Its properties are currently located in secondary and tertiary communities across Ontario.
Skyline Retail REIT is currently providing a 7.8% annual yield.
Find out more about Skyline Retail REIT here.