London Life Real Estate Fund

The London Life Real Estate Fund was launched in 1998 to create a vehicle for direct real estate investment. The Fund invests in high-quality, income-producing properties diversified by type and location. The objective is to provide investors with strong income returns and the opportunity for long-term capital appreciation. *

* Effective June 26, 2020, the valuation of the properties in the Fund resumed. The current conditions continue to give rise to significant valuation uncertainty. In the interests of protecting the Fund and its investors, the suspension of any contributions, redemptions or transfers from the Fund remains in place.

Fund Performance

as of September 30, 2020 *


in real estate assets *


in total assets *



Source of Return

Income 5.8%5.1%4.3%4.3%4%4.5%4.4%4.2%4.2%2.9%
Capital 12.5%14.1%4.3%1.7%0.4%0.8%0.9%2.1%5.5%(0.8)%
Total 18.2%19.2%8.6%6%4.5%5.3%5.3%6.3%9.7%2.1%

Compound rates of return

(gross of investment management fees)
Three Month – Q3 * 2.58%
Year-to-date * 2.11%
One Year 4.87%
Three Year 6.52%
Five Year 5.94%
Ten Year 8.62%

Diversification by property type

By property type (millions)

Retail 12.5% $ 375
Office 40.5% $ 1,218
Industrial 21.7% $ 653
Residential 18.6% $ 560
Other 6.6% $ 199

Diversification by region

By region (millions)

British Columbia 22.0% $ 666
Alberta 11.3% $ 340
Prairies 0.7% $ 290
Ontario 53.8% $ 1,615
Quebec 9.3% $ 278
Atlantic 2.6% $ 79
U.S. 0.2% $ 7

Quarterly Highlights

Q3 2020 London Life Real Estate Fund Bulletin

The London Life Real Estate Fund posted a 2.6% total gross return for the third quarter, driven largely by the stability of the Fund’s income return at 1.0%.  Despite ongoing challenges related to the global pandemic, income returns have been buoyed by strong occupancy and collection levels.  Increasing levels of investment and leasing activity helped to improve in-quarter visibility on valuation parameters, allowing appraisers to lift valuation uncertainty qualifications in the multi-family and selectively in the industrial asset class. At quarter end, most the Fund’s property valuations remain qualified and, as a result, the Fund’s temporary suspension remains in place. 

Livmore High Park, Toronto, ON
Livmore High Park, Toronto, ON
Livmore High Park, Toronto, ON
Livmore High Park, Toronto, ON
Occupancy and Rent Collection

Occupancy for the portfolio ended the quarter at 92.8%, virtually unchanged from the previous period.  The Fund is well positioned from a lease expiry profile standpoint with over 73% of its commercial leases secured beyond 2023.  Notably, of the rollover exposure in 2021, 61% of it is within the Fund’s industrial portfolio where market fundamentals remain favorable. 

Collection levels improved in the quarter, averaging better than 94% on a monthly basis and totaling 96.7% when adjusted for the inclusion of payments from the government sponsored Canadian Emergency Commercial Rent Assistance program (CECRA).  CECRA concluded in September and is intended to be replaced by the recently announced Canada Emergency Rent Subsidy (CERS).  This program directly contracts the tenant with the government, removing the landlord as a participant.  

Asset Valuation

In June, the Fund adopted an accelerated valuation process which increased the frequency of external valuations to a quarterly cadence and at the end of August, the first full cycle of valuations was completed.  Industrial and multi-family values rose as the accelerated adoption of e-commerce created favourable for the asset class, while the multi-family sector continues to benefit from strong investor appetite related in part to the availability of attractive CMHC insured financing and positive supply and demand dynamics.  Office and retail values were negatively impacted, as uncertainly around the timing and potential structural impacts of office use as well as evolving consumer shopping preferences take shape.

Development Update

The first phase of the Livmore High Park development was completed and granted an occupancy permit in August, with the second phase to follow in Q4.  Leasing activity within the first tower has been robust to date, now at 54%, with rental rates in line with proforma expectations.  The project represents a $160 million investment into 530 units of new generation, amenity rich, transit-oriented multi-family product adjacent to High Park in Toronto. 

Construction progress continues at Vancouver Centre II, which is now 52% preleased and scheduled to be complete in late 2021/early 2022.  More information about the exciting new project is available by following this link:


The Fund benchmarks performance against various peer groups to provide a relative measure.   The Fund posted very strong returns as compared to the MSCI’s Property Fund Index (PFI), which consists of 9 open-end Canadian core real estate funds.  For the third quarter, the Fund’s 2.57% gross return bested the PFI’s performance of 0.68% by an impressive 189 bps. Over the rolling 12-month and three-year periods, the Fund has outperformed the PFI by 265 bps and 15 bps respectively. Portfolio construction, which is highlighted by its geographic diversification, income-oriented characteristics, a defensive retail strategy and a strong multi-family allocation, continues to drive performance for stakeholders.  


Latest bulletin

Past Performance Reports

Quarterly Bulletins

Q3 2020 Bulletin PDF (318 KB)
Q2 2020 Bulletin PDF (193 KB)
Q1 2020 Bulletin PDF (1 MB)
Q4 2019 Bulletin PDF (1 MB)

Want to Invest?

Contact a London Life advisor to invest in the London Life Real Estate Fund.