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. 

 

Fund Performance

as of  September 30, 2021

$3.6B

in real estate assets

$3.8B

in total assets

86

properties

Source of Return

2012201320142015201620172018201920202021
Income 5.1%4.3%4.3%4%4.5%4.4%4.2%4.2%3.9%2.6%
Capital 14.1%4.3%1.7%0.4%0.8%0.9%2.1%5.5%(1.1)%9.7%
Total 19.2%8.6%6%4.5%5.3%5.3%6.3%9.7%2.7%12.3%

Compound rates of return

(gross of investment management fees)
Three Month – Q3 4.92%
Year-to-date 12.30%
One Year 13.04%
Three Year 8.39%
Five Year 7.50%
Ten Year 8.30%

Diversification by property type

By property type (millions)

Retail 11.7% $ 386
Office 35.6% $ 1,172
Industrial 27.7% $ 911
Residential 17.5% $ 576
Other 7.6% $ 249

Diversification by region

By region (millions)

British Columbia 22.4% $ 738
Alberta 9.5% $ 313
Prairies 0.6% $ 20
Ontario 56.4% $ 1,857
Quebec 8.5% $ 279
Atlantic 2.4% $ 80
U.S. 0.2% $ 6

Quarterly Highlights

Q3 2021 London Life Real Estate Fund Bulletin

The London Life Real Estate Fund capped off the third period of 2021 by posting a gross quarterly return of 4.9%, raising the year-to-date figure to 12.3% and the trailing twelve-month mark to 13.0%.   Income returns remained steady as occupancy in the portfolio improved to better than 92% while the Industrial component of the Fund continued to drive robust capital performance.  Key takeaways from the third quarter follow.

Home Depot Distribution Ctr, Calgary, AB
1 Adelaide Street, Toronto, ON
The Chronicle, 1500 Robson, Vancouver, BC
Financing Activity

Located in South East Calgary, AB and leased to Home Depot on a long-term basis, the Fund completed a $30M, ten-year loan on the 1.1 million square foot distribution centre at a fixed interest rate of 2.6%.  The facility features interest only payments for the full term, preserving efficient leverage and bringing the overall Fund’s LTV 21%. 

2021 GRESB Results

GRESB is the global environmental, social and governance (ESG) benchmark for real assets. The 2021 benchmark covers more than 1,520 property companies, representing US $5.7 trillion in real asset value.

In Q3, The Fund Manager, GWLRA, was again recognized by the Global Real Estate Sustainability Benchmark (GRESB) for its leadership in sustainability, earning a Green Star ranking for the seventh consecutive year, and its fifth consecutive GRESB ‘5 Star’ (top quintile) rating. GWLRA attained top marks in GRESB’s ‘Management Component’ for its robust ESG leadership, policies, reporting, risk management, and stakeholder engagement activities.

1 Adelaide Complex

Located at the southeast corner of Yonge and Adelaide in Toronto, ON, the property includes 1 Adelaide Street East, a 30-storey LEED® Gold certified office tower, 20 Victoria Street, a nine-storey boutique office building, and 85 Yonge Street, a three-storey retail building.  In Q3 the asset was awarded the “The National Outstanding Building of the Year (TOBY)” for Office Buildings in the 500,000 sq ft to 1 million sq ft category.  Judging is based on building standards; community impact; tenant relations; energy conservation, environmental, regulatory and sustainability practices; emergency preparedness and security standards. 

Also in Q3, the building participated in the Rick Hansen Foundation’s ‘Buildings Without Barriers Challenge’ and attained Rick Hansen Foundation Accessibility Certification (RHFAC). Through participation in the Challenge, the Fund manager was able to demonstrate to employees and tenants its commitment to creating accessible spaces for all.

Looking Ahead

After a pause through the first couple of quarters of the pandemic, Q3 Canadian investment activity picked up where it left off and produced the third highest volume on record*. Development forms a key component of Fund strategy as it provides the ability to deliver premium risk adjusted returns in an otherwise extremely competitive investment market.  From recently completed projects such as Livmore at High Park Village (https://livmorehighpark.com) to active sites like The Chronicle (https://rentchronicle.com/) and Vancouver Centre II  (https://www.vancouvercentre.com ) along with a significant long-term pipeline, the Fund is well positioned to continue to grow in prioritized markets and asset classes through its market leading development platform. 

*CBRE

The Segregated Funds described in this bulletin are offered through a variable insurance contract issued by The Canada Life Assurance Company.

Please note that unit values and investment returns will fluctuate, and past performance is not necessarily indicative of future performance.

For IVIC investors: A description of the key features of the segregated fund policy is contained in the information folder.

Downloads

Latest bulletin

Past Performance Reports

Quarterly Bulletins

Q3 2021 Bulletin PDF (352 KB)
Q2 2021 Bulletin PDF (348 KB)
Q1 2021 Bulletin PDF (428 KB)
Q4 2020 Bulletin PDF (264 KB)

Want to Invest?

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