Artis REIT (TSX: AX.UN) is one of the largest diversified commercial real estate investment trusts in Canada, and is an unincorporated closed-end real estate investment trust created under, and governed by, the laws of the Province of Manitoba.
Artis owns a portfolio of industrial, office and retail properties in Canada and the United States. At March 31, 2021, the REIT’s portfolio comprised 207 commercial properties (inclusive of properties held in joint-venture arrangements) totaling approximately 22.5 million square feet of gross leasable area.
On March 10, 2021, Artis announced a new vision and strategy – to become a best-in-class real estate asset management and investment platform focused on growing net asset value (“NAV”) per unit and distributions for its investors through value investing. Artis’ go-forward vision and strategy includes the following:
- Strengthening the balance sheet to provide significant liquidity and flexibility
- Unlocking value by monetizing a portion of Artis’ institutional-grade industrial portfolio;
- Maximizing value of Artis’ office and retail assets by improving operating performance and pursuing a measured, opportunistic and patient strategy for divestitures;
- Maintaining strong liquidity to capitalize on opportunities; and
- Maintaining low leverage and debt metrics within the investment grade credit rating parameters defined by DBRS Morningstar.
- Focusing on value investing by identifying real estate opportunities that are mispriced, misunderstood or mismanaged
- Identifying investments that are undervalued with potential to produce above average risk-adjusted returns over the medium-to-long term;
- Evaluating opportunistic investments that can be fixed or turned around;
- Acting as a catalyst to influence positive change; and
- Capitalizing on mispricing in the public markets.
- Driving organic growth
- Improving their income profile of assets to highest potential;
- Developing a recurring fee stream for management of assets through future joint arrangements;
- Optimizing the value of existing properties through operational efficiencies; and
- Focusing on operating in a cost-efficient manner across the organization.
- Institutionalizing the new platform
- Establishing an entrepreneurial culture that supports and promotes the execution of Artis’ long-term vision and strategy;
- Continuously raising the bar for financial reporting and other disclosures;
- Developing a robust environmental, social and governance strategy;
- Enhancing the investor relations and communications program; and
- Rebranding – new name, new image, new future.
The goal of the REIT’s new vision and strategy is to generate meaningful long-term growth in NAV per unit and distributions by monetizing assets, strengthening the balance sheet and scaling-up through value investing in real estate. Artis will concentrate its ownership in the highest and best return opportunities in an effort to maximize long-term value for unitholders.
Artis’ common units trade on the Toronto Stock Exchange under the symbol AX.UN and the REIT’s preferred units trade under the symbols AX.PR.A, AX.PR.E and AX.PR.I. Artis’ common units also trade in the United States on the OTCQX Best Market (“OTCQX”), under the symbol ARESF.
Artis REIT’s Management Team
Artis REIT’s management team has extensive experience in construction, development, and management of commercial and other properties in Canada and the United States. The management team at Artis REIT has implemented a prudent investment strategy, which includes stringent acquisition criteria, a conservative financing approach, and an attractive development pipeline.
Artis REIT is fully-internalized and operates its own asset management and property management functions. These functions are responsible for the day-to-day management of the REIT’s portfolio as well as administrative services.