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, 2022

$3.8B

in real estate assets

$3.9B

in total assets

87

properties

Source of Return

2013201420152016201720182019202020212022
Income 4.3%4.3%4%4.5%4.4%4.2%4.2%3.9%3.4%2.5%
Capital 4.3%1.7%0.4%0.8%0.9%2.1%5.5%(1.1)%13.1%5.0%
Total 8.6%6%4.5%5.3%5.3%6.3%9.7%2.7%16.5%7.6%

Compound rates of return

(gross of investment management fees)
Three Month – Q3 -0.96%
Year-to-date 7.57%
One Year 11.58%
Three Year 9.77%
Five Year 8.79%
Ten Year 7.74%

Diversification by property type

By property type (millions)

Retail 10.9% $ 384
Office 31.6% $ 1,115
Industrial 31.9% $ 1,127
Residential 19.3% $ 681
Other 6.4% $ 224

Diversification by region

By region (millions)

British Columbia 22.1% $ 780
Alberta 9.6% $ 339
Prairies 0.6% $ 20
Ontario 57.1% $ 2,015
Quebec 8.2% $ 291
Atlantic 2.3% $ 80
U.S. 0.2% $ 6

Quarterly Highlights

Q2 2022 London Life Real Estate Fund Bulletin

Through the fist half of 2022 the London Life Real Estate Fund has produced an 8.6% total gross return, bringing the trailing twelve-month total to 18.2%.  The 3.3% Q2 performance was comprised of 80 bps of income and 250 bps of capital return.   Overall portfolio occupancy remained stable as the residential component of portfolio saw its vacancy rate contract by 390 bps to 5.6%.   With the addition of approximately $97M in new financing, the Fund’s loan to value ratio has improved to 20.2%, up from 18.7% at the end of Q1.  Activity for the quarter is outlined below:

33 Yonge Street, Toronto
33 Yonge Street, Toronto
33 Yonge Street, Toronto (Interior)
33 Yonge Street, Toronto (Lobby)
Financing Activity

Laird and Ridgeway business parks are two significant holdings for the Fund, comprising over 1.5M sq ft of newer generation, small and mid bay industrial product.   The assets are exceptionally well located in the west end of Mississauga, ON, with direct visibility from highway 403.  In June, the Fund completed a $73.5M financing on an interest only basis over a six-year term.   Further, the Fund completed two CMHC insured refinancing initiatives over the course of the quarter at Laurier House in Vancouver, BC, and 1541 Riverside in Ottawa, ON, delivering $24M in new proceeds. 

Industry Recognitions

33 Yonge Street, which is the headquarters of GWLRA in Toronto and one of the signature assets in the Fund, was first the recipient of BOMA’s certificate of excellence and then went on to win BOMA’s TOBY (‘The Outstanding Building of the Year’) award for office buildings in the 500,000-1,000,000 sq ft category.  The recognition is a testament to the hard work and dedication of the team and to the overall quality of the building. 

Forward Outlook

After a couple of record-breaking quarters of investment transactions, the market has paused as participants digest the implications of an evolving interest rate environment and inflation that remains well above target.   Fundamentals however are generally steady and improving as we move into the post pandemic era.  The Fund remains well positioned with a strong occupancy profile and limited rollover exposure over the next 36 months.

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

Q2 2022 Bulletin PDF (1 MB)
Q1 2022 Bulletin PDF (1 MB)
Q4 2021 Bulletin PDF (1 MB)
Q3 2021 Bulletin PDF (352 KB)

Want to Invest?

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