SLIDE 1
This session is sponsored by: Panelists David Ward Director, - - PowerPoint PPT Presentation
This session is sponsored by: Panelists David Ward Director, - - PowerPoint PPT Presentation
This session is sponsored by: Panelists David Ward Director, Acquisitions, Morquard Investment Limited Ted Welter Managing Director, Real Estate & Mortgage Investments Greystone Managed Investments Inc . John Williams President North
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Economic Outlook
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00%
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2014 F Real GDP Growth
Sask Alberta Manitoba For the last 4 years Saskatchewan has mirrored Alberta in terms of GDP
- growth. This trend is now forecasted by Stats Canada to continue into the
future.
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Noteworthy Investment Sales 2012 2002 Airport Drive (Hotel) $37,150,000 Cap: 6.5%
- 250 Units, $148,600/unit
301 Confederation Drive $18,350,000, Cap: 6.6%
- 74,156 SF, Retail
838 48th Street East $18,270,000, Cap: 6.46%
- 65,698 SF, Office
118 & 124 Tubby Cres, 941 60th
- St. E
$10,650,000, Cap: 6.9% 2250 7th Ave N, 443 Lorne Street N, 2235 8th Ave N $5,175,00, Cap: 6.98%
- 45 Units, $115,000/Unit, Multi-family
4250 Albert Street $9,600,000, Cap: 7.38%
- 41,238 SF, Retail Building
1832 Victoria Avenue East $8,744,990, Cap: 6.81%
- 39,530 SF, Retail Building
402 McDonald St., 651 Henderson Dr., 310 Hoffer Dr. $17,700,000, Cap: 7.44%
- Industrial Building
Saskatoon Regina
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2012 Western Canada Cap Rates
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% Office Retail Industrial Multi-Family
Vancouver Calgary Edmonton Saskatoon Regina Winnipeg
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6.46% 6.60% 6.90% 6.90% 6.00% 6.81% 7.44% 6.98% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% Office Retail Industrial Multi-Family Saskatoon Regina
2012 Saskatoon & Regina Cap Rates
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Farm Land Values 1984 - 2012
- Saskatchewan Outlook
- Farmland values have seen a trend of increasing prices since 2002. In the past year,
average prices for an acre of farmland in northern Saskatchewan have risen from $650 to $1,200 per acre to $800 to $1,100 per acre, while prime farms in southern Saskatchewan are being bid as high as $2,000 per acre.
- Thus far in 2013 farmland values in Saskatchewan have increased by 9.7%, Manitoba
values increased 13.9% and Alberta by 7.2%.
- During the last 6 months the price of lower-valued land experienced a greater increase.
- Interest from out-of-province buyers continued. Retiring farmers sold large blocks of land
to take advantage of the strong prices to sell their entire operation.
- 20.00%
- 10.00%
0.00% 10.00% 20.00% 30.00% 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Farmland increased 1.04% annually since ’84; 4.2% annual increase since 2010.
Saskatchewan Alberta Manitoba
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The current yield on a 10-year Government of Canada (GoC) bond is approximately 1.70%, ~430 bps below the current national average cap rate of 6.00%, and ~500 bps below the average Saskatchewan cap rate of 6.70%. This spread is well above the historical national average of 323 bps since 1990, and above the maximum national average spread of 451 bps at year-end 2011. *Calculated based on the average cap rate for all property sectors excluding hotel.
Saskatchewan Cap Rate Analysis:
1.70% 6.00% 6.70% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 10-year GOC bond Canadian Average Saskatchewan Average
430 bps
500 bps
Historical National Average 4.93%
403 bps
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