While REITs were active buyers in the Vancouver market 5 to 10 years ago, they have been fairly quiet over the past several years as a result of yield compression and few attractive opportunities relative to other markets. Canadian REITs showed strong returns of over 15% in 2012 (more than double that of the TSX), primarily through operating gains throughout their portfolio, but in terms of acquisitions, most have been challenged to find deals in Vancouver.

Here we take a look at 10 of the larger REITs that own assets in Vancouver (in no particular order):

1. RioCan (TSX: REI.UN)

Grandview Corners

Riocan is Canada’s largest REIT, focusing solely on retail. They own two properties outright in Metro Vancouver including the Best Buy/Canadian Tire building on Cambie Street (acquired in 2004), and Impact Plaza in Surrey (acquired in 2006). They also have a 50% ownership interest in a handful of shopping centres in the Fraser Valley, including Abbotsford Power Centre, Grandview Corners in South Surrey and Riocan Langley Centre. They have been pretty quiet here, and recently announced that they are “toning-down” acquisitions Canada-wide in the near term.

2. Boardwalk REIT (TSX: BEI.UN)

Horizon Towers

Boardwalk is an open-ended REIT that is active in Canada’s major markets in Multifamily apartments. Boardwalk’s B.C. portfolio reported occupancy at 98.23% in 2012. They own several large scale apartment complexes including Horizon Towers in Burnaby and Surrey Village in Surrey.

3. KEY REIT (TSX: KRE.UN)

KEY REIT is a small-box retail property owner that specializes in niche business model, leases, quality properties and a focus on a handful of name brand tenants (primarily KFC/Taco Bell and Shoppers Drug Mart). Among their few B.C. assets are an A&W at 4605 East Hastings in Burnaby, and two KFC’s on Kingsway and East Broadway in Vancouver.

4. Calloway REIT (TSX: CWT.UN)

Calloway is a well-known retail REIT with focus on larger name brand centres. While they have a strong presence in Western Canada, their ownership in Metro Vancouver is limited to two centres: Langley SmartCentre (acquired in 2004) and New Westminster Smartcentre (bought in 2005).

5. Artis REIT (TSX: AX.UN)

Willingdon Green

Artis REIT is a diversified REIT that is active in several markets in retail, office and industrial. They have been one of the more active buyers in Vancouver in recent years. They own several sizeable office assets in Metro Vancouver including: 1045 Howe Street in Downtown Vancouver, as well as the Kincaid Building, Willingdon Green, and Production Court in Burnaby. They also own retail assets such as King Edward Centre and Delta Shoppers Mall.

6. CAP REIT (TSX: CAR.UN)

Georgian Towers

CAPREIT is a multifamily focused investment trust that owns interest in 36,683 apartment units across Canada. The REIT owns 15 apartment properties in Metro Vancouver including highrises such as: International Plaza in North Vancouver, Georgian Towers Downtown and Ocean Park Place in the West End. They also own larger scale apartment complexes in Coquitlam, New Westminster and Richmond.

7. Dundee REIT (TSX: D.UN)

Dundee REIT’s focus is on central and suburban office assets in Canada’s major markets. In Vancouver their ownership covers ten buildings in suburban markets such as Surrey, Burnaby, Richmond and New Westminster.  One of their larger assets is Station Tower, one of Surrey’s few ‘A’ class highrise office buildings.

8. Allied Properties REIT (TSX: AP.UN)

840 Cambie St.

Allied REIT was incorporated in 2003, but is relatively new on the scene in Vancouver.  Allied owns and manages what they refer to as ‘Class I’ office properties in urban markets.  Their target acquisitions are older office buildings in established areas.  In just the past 18 months in Vancouver, Allied has acquired: 1040 Hamiltion, The Sun Tower, 1286 Homer Street, 840 Cambie Street and 948 Homer Street, for a total portfolio of 244,704 SF. Their focus continues to be on the Gastown and Yaletown areas.

9. Canadian Real Estate Investment Trust (CREIT) (TSX: REF.UN)

1185 W. Georgia St.

CREIT is a diversified REIT focusing on quality retail, industrial and office properties throughout Canada. In Vancouver their largest interests are in core office assets at 1185 West Georgia, and 1508 West Broadway (the Chapters Building).  They also have assets in Maple Ridge, and a total portfolio interest of over 1 Million SF in B.C.

10. Pure Industrial REIT (PIRET) (TSX: AAR.UN)

Pure Industrial REIT invests in and manages income producing industrial properties in primary Canadian markets, including Vancouver. They have been active in the Vancouver market recently with the acquisition of several properties and they now have a portfolio of 13 properties in the Lower Mainland, including Burnaby, Delta, Richmond and Surrey. Just last week they announced the acquisition of 16111 Blundell Road in Richmond, a 280,000 SF facility for $32,300,000. PIRET is one of the few REITs that is finding opportunities in Vancouver currently.

Other REITs with significant holdings in Vancouver include: Chartwell Seniors Housing REIT, Loblaws (which is spinning its real estate into a REIT, owns several properties in Metro Vancouver.

NOTE: OMERS is the parent company of Oxford Properties, owners or part owners of the Marine Building, Gusiness Tower, Oceanic Plaza, 1021 West Hastings Street, 1133 Melville Street, 800 Burrard Street and 401 West Georgia in Vancouver.

OMERS Net Assets Surpass $60 Billion in 2012 With 10% Investment Return.

“TORONTO, ONTARIO–(Marketwire – Feb. 22, 2013) – OMERS, one of Canada’s largest pension plans, today announced its 2012 financial results. OMERS net assets grew to $60.8 billion, rising by $5.7 billion in 2012 and by over $17 billion since the 2008 global credit crisis. Now in its 50^th year, OMERS is an active, diversified investor, pension innovator, and an engine of economic growth and employment in Ontario and Canada.

OMERS total Plan investment return of 10% was driven by strong performance in its private market portfolio and solid public market performance in line with expectations and current market conditions. “OMERS had a strong year in 2012. The $5.7 billion increase in our net assets demonstrates the strength and robustness of OMERS business model with the capacity to generate growing investment cash yields and more than ample liquidity to withstand market shocks under stressed financial conditions,” said Michael Nobrega, OMERS President and CEO.

OMERS private market portfolio had a 13.8% investment return – with returns of 19.2% (OMERS Private Equity), 16.9% (Oxford Properties), 12.7% (Borealis Infrastructure) and negative 10.1% (OMERS Strategic Investments). OMERS Strategic Investments, which represents less than two and a half per cent of OMERS net investments, has its principal assets in Alberta’s oil and gas sector. The year-end valuation of these assets was negatively impacted as oil and gas prices fell to their lowest levels in five years.

OMERS Capital Markets, which manages the public market portfolio including public equities, fixed income and debt investments, generated a 7.5% return. “

Retail and real estate analysts believe large retailers such as Walmart or Target could start pushing for construction of a new mall on either of two downtown blocks that are ripe for redevelopment.

Canada Post’s sale in January of its long-time Vancouver headquarters to BC Investment Management Corp. (BCIMC) has opened up the block bounded by Georgia, Homer, Dunsmuir and Hamilton streets.

Two blocks east is Larwill Park, which is owned by the City of Vancouver and bounded by Georgia, Cambie, Dunsmuir and Beatty streets.

The Vancouver Art Gallery (VAG) is hoping to convince the city at a meeting, likely to be held in early March, that it should be given the site – which some estimate to be worth $200 million – to build a new $300 million gallery.

Neighbors to the North Emerge As Largest Foreign Investor In U.S. Real Estate – CoStar Group.

“As a handful of major deals this month attest, Canada continues to be the most dominant foreign investor in U.S. assets, with a total investment more than triple that of its nearest competitor country, according to Jones Lang LaSalle.

“Canada emerged from the recession in better financial shape due to its banks issuing recourse loans and suffering fewer hits during the mortgage meltdown versus other countries. These deeper pockets allowed Canadians to invest in U.S. real estate when values were most suppressed,” said Steve Collins, international director of Jones Lang LaSalle’s Capital Markets, who attended last week’s Association of Foreign Investors in Real Estate’s (AFIRE) annual Winter Conference in New York. “

After months of expansion in the British Columbia market, SpaceList launched its commercial real estate listing platform across Canada this week.

Based in Vancouver, SpaceList is now available in cities such as Toronto, Ottawa, Winnipeg, Calgary, Edmonton and Montreal. Finally, commercial real estate listings will be aggregated in a single place, making it easier for businesses to find a new location. In the past, those looking for space had to search through dozens of different websites, each displaying different information in different formats.

SpaceList has solved this problem by building the MLS for commercial real estate. With over 60 Million square feet of available space for rent across Canada, businesses and individuals can see more options in one place than ever before. Landlords and brokers can add their listings in minutes, and as a result, hundreds of new spaces are added each week.

Read more: http://www.newswire.ca/en/story/1118859/spacelist-launches-marketplace-for-office-retail-and-warehouse-space