[Guelph, Ontario – January 8, 2024]
Skyline Industrial REIT, a Guelph, Ontario-based Real Estate Investment Trust (REIT) focused on acquiring, managing, and developing modern warehouse and logistics facilities across Canada, is pleased to announce another successful and transformative year.
Economic uncertainty amid the rising interest rate and the inflationary environment through 2023 has posed challenges for many industries, including the real estate sector. However, Skyline Industrial REIT has successfully managed these hurdles, in no small part due to the REIT’s robust and diverse tenant portfolio comprised of both near-term, under-market leases and long-term tenants with built-in rental rate increases. The REIT also credits its selective and opportunistic acquisition strategy, strong development partner relationships, and an influx of capital from the completion of its strategic dispositions for its stable performance throughout the past year.
The REIT has continued to modernize its portfolio with class-A industrial, warehousing, and logistics-focused assets. In 2023, the REIT completed eight transactions, adding three new assets to the portfolio and selling 15 non-core assets (in five separate transactions) . In total, the REIT transacted on 1,599,871 square feet with an aggregate gross asset value of $388.68 million in 2023.1
In total, the REIT completed $195.25 million in acquisitions in 2023, adding 883,517 square feet of modern A-class space to its portfolio.
As of December 31, 2023, Skyline Industrial REIT is comprised of 50 properties in five provinces across Canada, for a total portfolio size of 9,610,633 square feet of industrial space.
2023 was a banner year for Skyline’s investment in the Rosefellow Development Funds. The REIT broke ground on two industrial/logistical development projects in Candiac, Quebec. The projects, in partnership with Rosefellow Developments and F.I.T. Ventures, are located at 131 Montcalm Boulevard North and 450 Rue Paul-Gaugion in Candiac, together totaling approximately 619,750 square feet. Upon completion, 131 Montcalm Boulevard North will be carbon-zero certified, and 450 Rue Paul-Gaugion will be LEED-certified. The REIT, Rosefellow, and F.I.T. Ventures also commenced construction on a 296,350 square foot LEED-certified, carbon-zero development in Laval, Quebec, as well as a three-building, 585,401 square foot, Zero Net Carbon development in Kirkland, Quebec.
As a testament to the success of the Rosefellow development partnership, the REIT celebrated the completion of several Montreal development projects in 2023:
The REIT currently has seven development projects in its pipeline in partnership with Rosefellow and F.I.T Ventures.
The REIT was proud to break ground and report substantial progress on its joint venture, Bayers Lake Halifax Development, a 400,688 square foot, two-building, Net Zero Carbon development project on Susie Lake Crescent in Halifax, Nova Scotia.
The REIT has continued to explore opportunities to enhance the value of existing properties through expansion and development opportunities. In November 2023, it completed a 52,000 square-foot expansion for its tenant, TRW, at 6365 Hawthorne Drive in Windsor, Ontario, further strengthening the business relationship with TRW and the overall asset value.
The REIT also announced plans to construct an additional 96,726 square foot industrial building on vacant land within the REIT’s wholly-owned Rampart Business Park in Edmonton, Alberta. Construction is scheduled for completion in Q3 2024.
Together, the REIT’s pipeline of new developments will add approximately 3.1 million square feet of best-in-class industrial space by the end of 2025.
Skyline Industrial REIT places high value on its relationships with its partners and tenants. In a video released in August 2023 in conjunction with Rosefellow, Mike Bonneveld, President, Skyline Industrial REIT, reflected on the Skyline-Rosefellow partnership’s success and future plans.
The REIT has also positioned itself as a significant entity within the industrial space and has become a key player in many markets. In June 2023, the REIT ranked #8 in Canadian Property Management’s Top 10 Owned and Managed in Canadian Real Estate list, signifying the REIT’s substantial growth and position within the Canadian industrial real estate industry. Additionally, throughout the year, Bonneveld was featured on several podcasts as a guest speaker and was recently interviewed by RENX.ca, discussing the strengths and strategies of the REIT..
With considerations for environmental sustainability continuing to evolve within the industry, Skyline Industrial REIT is not only facilitating LEED and Zero Net Carbon developments but has also started to rollout an EV charging program across its portfolio, with plans for further installations in 2024. As part of Skyline Group of Companies, Skyline Industrial REIT aligns its sustainability initiatives and goals with those of the overarching Skyline entity, in an effort to reduce environmental impact while maintaining and enhancing unitholder value.
Heading into 2024, Skyline Industrial REIT remains grounded in its unwavering commitment to the principles that have defined its success to date. Occupancy rates remain very strong, and a continued growth trajectory is anticipated as the REIT strategically positions itself within key markets. The new year brings a renewed focus on tenant relationships: understanding their evolving needs and fostering REIT-tenant partnerships that extend beyond occupancy agreements.
Central to this philosophy is the proactive approach to tenant renewals and bolstering the longevity of these relationships, as well as bringing rental rates up to market, as the REIT’s leasing principles provide agility in responding to market trends and demands.
Skyline Industrial REIT will continue to focus on acquiring, operating and developing light industrial, logistics, and warehousing assets in primary Canadian cities along major transportation routes and global shipping outlets.
1 As of December 31, 2023.
Skyline Industrial REIT (the “REIT”) is a privately owned and managed portfolio of industrial properties, focused on acquiring warehousing and logistics-centred properties along major highway corridors and transportation routes in Canada.
Skyline Industrial REIT is distributed as an alternative investment product through Skyline Wealth Management Inc. (“Skyline Wealth Management”), the preferred Exempt Market Dealer for the REIT. It is also available on Fundserv (Code: SKY2012).
Skyline Industrial REIT is committed to providing outstanding places to do business and superior service to its tenants, while surfacing value with a goal to deliver stable returns to its investors.
To learn more about Skyline Industrial REIT, please visit SkylineIndustrialREIT.ca.
To learn about additional alternative investment products offered through Skyline Wealth Management, please visit SkylineWealth.ca.
Skyline Industrial REIT is operated and managed by Skyline Group of Companies.