Note: -Returns are based on change in unit value over the period and assumes all distributions reinvested in DRIP Program, calculated net of fees.
1. Annualized Returns, Net of Fees.
2. Formed Jan 24, 2012. first units sold were Class F units on (“Inception Date”) March 15, 2012. Inception Date of Class A units was September 1, 2016. Inception Date of USD Class F & USD Class A units was April 1, 2017. Returns shown include the effect of US tax reform passed December 2017.
RISE Properties Trust is a publicly offered, private Canadian REIT invested in the US multifamily sector, initially focused in the Greater Seattle area. Through management’s existing business platform and fully integrated operations, the Trust is able to acquire under-performing rental apartment properties and improve their operations, cash flow, and value.
As of December 31, 2019, the fund’s Total Net Asset Value is $327 Million.
The RISE management team currently owns ~$29 million of RISE.
RISE units are currently offered at $20.9905 CAD, and $16.1585 USD. A minimum investment of 100 units is required.
Quarterly dividends were $0.220 per unit as at December 31, 2019 for class F units. Since inception, class F unit distributions have increased 120%.
Quarterly dividends for class A units were $0.177 per unit as at December 31, 2019.
Invest in RISE through your Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA).
Jo-Anne Hellwig, Investor Relations Manager
250.880.5358 or Investor_Relations@riseproperties.ca
Dave Kirzinger, Acting CEO and Compliance Officer
425.503.2389 or DaveK@riseproperties.ca
THIS INFORMATION DOES NOT REPRESENT AN OFFERING OF SECURITIES. THE INFORMATION DISCLOSED IN THIS SUMMARY IS INCOMPLETE AND IS QUALIFIED IN ITS ENTIRETY BY THE OFFERING MEMORANDUM FOR RISE PROPERTIES TRUST.
The current annualized distribution yield is 4.19% for class F units and 3.38% for class A units, and is paid from operating cash flow.(5)
RISE is mandated to no greater than 2:1 leverage (67%) and is currently operating at 50.55%.
Weighted average cost of debt is 3.73% at December 31, 2019.
RISE currently has 86.8% of it’s debt in fixed instruments at December 31, 2019.
The current value of the portfolio is ±$614 million at December 31, 2019. Most recent appraisals and proforma values for projects under development reflect a ±$106.9 million increase in value (±17.4% from value-add activities).
RISE management subscribes to the “get rich slow” theory. Our active, hands-on approach to apartments is based on an enduring investment strategy, not a series of real estate deals.(3)
RISE units are purchased in Canadian Dollars. The fund owns US real estate. Therefore unit values may be affected by foreign currency adjustments.(3)
While there is an opportunity to redeem units, you will find that RISE is not as liquid as publicy offered REITs. We recommend fully understanding the redemption mechanism within RISE prior to investing.(3)
(3) Full disclosure of investment risks are set out in the RISE Properties Trust Offering Memorandum, which should be reviewed prior to investment.
(4) Historic returns set out above reflect both the yield earned on investment properties, the increases in the value of the investment properties due to improvements made by management, as well as any profit generated from conversion during the period. The returns are net of all fund expenses and management fees (both fixed and carried interest).
Investment properties are measured at fair value with any change therein recognized in income. We have determined increases in the value of real estate holdings using the income approach or direct comparison approach described in our significant accounting policies located in our financial statements. As we have relied on estimates to determine the value of the properties, the rates of return shown may vary if different estimation methods are applied. Calculated returns are based on the assumption that all dividends received by unit holders are re-invested in further units of the trust and, that dividends and other distributions are earned in a tax free account. Returns will be lower to the extent either of these assumptions are untrue.
(5) Distributions will vary based on net operating profit on the underlying properties. Although Rise Properties Trust intends to make regular distributions to unit holders, management has the right to reduce or suspend these if the trust has insufficient cash or, management wishes to preserve cash for future development projects.