Having Ceased All Acquisitions Due to the COVID-19 Pandemic

Dear Investor,
Having ceased all acquisitions due to the COVID-19 pandemic, our team is gearing up for re-entry into the market in the fourth quarter of 2020. Our acquisitions team has been closely monitoring the occupancy rates and rents collected from April to June across the US Multifamily portfolio.

The rent roll is an excellent indicator of the asset’s performance and the market as a whole, as consistent rent collection is indicative of asset stability. As per The National Multifamily Housing Council, 94% of apartment households have paid rent for that month. The figures were identical to collections during the same period in 2019, signaling that the pandemic has had minimal impact on collections.

We strongly believe that the various federal and state financial assistance programs have played a major role in ensuring higher collections across multifamily assets. Thus, it would be fair to assume that these figures may see downward pressure as the federal assistance programs are set to expire on July 31st.
However, we believe this unhindered performance through globally turbulent times speaks volumes on the stability of the asset type. Forbes Real Estate Council recently released data supporting multifamily properties as the best positioned real estate assets in the long term due to their low volatility and resilient demand.

While we will be closely monitoring the July and August rent rolls, we are confident that the multifamily real estate industry will outlast the potential economic slowdown that is predicted to follow the COVID-19 pandemic. This is due to the simple fact that people will always need a roof over their head, and more and more Americans are choosing to rent rather than own.

We have also noticed that the pandemic has created tremendous owner fatigue, with long term owners looking to exit their positions of managing the assets. We expect this to create favourable acquisition opportunities over the upcoming months.

We remain just as excited as all of you, to partner with you on our next acquisition. However, we choose to be cautiously optimistic to ensure your best interests and hard earned dollars remain protected. Our mission is to help investors maximize their returns while making our residents proud of calling our properties their home. Stay tuned for further updates on potential acquisitions in the upcoming months!

– August Biniaz
CEO & Founder, Canadian Passive Investing