Takeaways from the RBC CM Investor Sessions for Canadian REITs/REOCs in New York

Research evidence excerpt

Takeaways from the RBC CM Investor Sessions for Canadian REITs/REOCs in New York

still catching

up to the population growth of prior years, commentary was unanimously constructive. Demand from

grocers, value, and discount banners is particularly robust. Of note, SRU has already leased >50% of the

expansion at Toronto Premium Outlets. A broader acceleration of new supply seems unlikely given the

wide gap between market and replacement cost rents. Of the more discretionary retail portfolios, PMZ

also cited exceptionally strong CRU leasing velocity. Among retail attendees, we expect REI to lead on SP

NOI growth in 2026 (+3.5-4%), supported by robust leasing spreads and rising occupancy. The proposed

acquisition of FCR by CHP and KingSett Capital was also topical. As we noted on May 27, we see CHP’s

$5B acquisition of FCR’s assets as a strategically compelling deal that should enhance its growth profile

and quality. Bottom line, our preferred retail picks remain REI, CHP, PMZ, SRU, and APR.

Seniors housing operating metrics tracking on pace with targets. CSH reiterated its 95% SP-occupancy

target for 2026, with leading indicators moving in the right direction. With target growth of >4%

REVPOS, <4% DOEPOS, and minimal new supply, we see high-single/low double-digit SP NOI growth in

2026E/27E. Importantly, CSH is also building a pipeline of acquisition opportunities by partnering with

developers. While there are plenty of theories on CSH’s recent unit price weakness, we see current

levels as attractive. As for VITL, management is acutely focused on simplifying the business. Over time,

we expect its institutional investor draw to expand supported by a favourable outlook for healthcare

real estate fundamentals and a gradual shift to a more North American weighted footprint.