Skyline Apartment REIT - Investment Strategy

Skyline Apartment REITs Business Strategy

• Skyline buys at lower multiples of earnings
  Institutional buyers and large property syndicates purchase buildings in large urban centres based on the cost to reproduce the building.  The competition among buyers to acquire the new properties drives up the prices for the buildings.  Skyline Apartment REIT avoids purchasing buildings in large urban centres and purchases buildings based upon the income they produce.  Therefore, buildings are acquired at below replacement cost and at lesser multiples of earnings than those in large urban centres.
   
• Rural Consolidation
  The buildings that are purchased are in municipalities that meet a specific criteria that Skyline has developed through its years of experience in owning buildings in Ontario.  By purchasing solid, profitable buildings in more and more communities, Skyline believes that we are creating an entity of rural consolidation where the "whole is worth more than the sum of the parts". 
   
• Expense Reduction
  By purchasing buildings or portfolios from non-institutional owners, Skyline is able to use its portfolio size to attain better pricing and improve the overall condition of the property.  Implementation of Skyline's Portfolio Efficiency Plan (PEP) can increase investor yields by investing in items that not only reduce expenses to the building, but simultaniously improve the lifestyle of the residents.
   
• Revenue Increases
  Increases in rent cannot be imposed on our tenants without being earned.  As mentioned above, some of the PEP programs enhance the quality of living to the Skyline residents.  This in turn creates a demand for those wishing to live in a Skyline building where they will pay more to experience more.