AVENUE LIVING 2017: The Year In Review

A Special Message from the Founder and CEO

2017 was a year of many achievements for Avenue Living Asset Management. Despite the economic uncertainty in Alberta and Saskatchewan, Avenue Living completed a massive renovation program, achieved a record-high level of occupancy, introduced two new investment offerings, and, as the business model matured, commenced a significant equity raise going forward.

Please read on for the highlights, and all the best to you and yours for the upcoming New Year!

Anthony Giuffre,  Founder and CEO,  Avenue Living Asset Management

LARGE-SCALE RENOVATION PROGRAM COMPLETED

In 2017, Avenue Living Asset Management completed a massive, large-scale renovation program worth more than $85 Million, improving residential quality for tenants. Every building was renovated and improved, throughout the assets under management, worth $950 Million in total.

90% OCCUPANCY ACHIEVED

The response from current and new tenants to the large-scale renovation program was overwhelmingly positive toward Avenue Living Communities, our integrated property manager operates all assets on behalf of each mutual fund trust. The occupancy rate throughout the portfolio, some 6400+ units spanning 20 markets across Alberta, Saskatchewan and Manitoba, now stands at 90%.

OPPORTUNITY & AGRICULTURAL TRUSTS INTRODUCED

Avenue Living Asset Management introduced two new investment offerings this year, in addition to the original Avenue Living Real Estate Core Trust, an open-ended mutual fund trust with well-diversified assets across various core and non-core markets in Western Canada, established in 2006.

Introduced in January 2017, the Avenue Living Real Estate Opportunity Trust is a closed ended mutual fund trust, balancing underperforming multi-residential assets with stable, well-tenanted commercial assets across Western Canada. Collectively, this strategy drives capital growth coupled with predictable cash flows. The Opportunity Trust currently has more than 1,000 multi-residential units and 340,000+ square feet of retail, office and industrial space across Alberta and Saskatchewan under management and under contract.

Also initiated in January 2017, the Avenue Living Agricultural Land Trust is a closed-end mutual fund trust that invests in Canadian farm land. The business model involves investing in farm land and leasing it back to farm operators for cash rent. The Trust currently has more than 20,000 acres owned and under contract.

PLATFORM BECOMES MORE SOPHISTICATED

Since forming in 2006, Avenue Living Asset Management has been focused on growth. As one of the largest private real estate owner/operators in Western Canada, Avenue Living has acquired $950 Million in assets under management across various asset classes, risk profiles and primary/secondary Western Canadian markets.

Avenue Living’s experienced management team specializes in identifying and acquiring under performing real estate assets, typically well below replacement cost. The assets are stabilized through hands-on management and targeted value-add initiatives. Over the past decade, Avenue Living has built a significant portfolio of assets that generate solid returns for our investors, and provide quality homes and workplaces in our communities.

Now in its twelfth year, and after a transitional four quarters, the business platform has become more mature. The strategic efforts have progressed from structuring the next deal to a long-term outlook that encompasses the next ten years. Above all, the company is a value-oriented asset manager. This selective investment approach aims to create long-term value, preserve capital and drive compelling returns for investors through a variety of investment offerings.

NEW EQUITY RAISE

To date, Avenue Living Asset Management has raised $125 Million in equity from private, strategic capital partners. At the end of 2017 and into the next two quarters, the company is moving forward with a significant equity raise with the goal of continuing to deleverage and stabilize the business platform. Looking ahead to 2018, Avenue Living maintains a forecast of growth and adaptability in changing markets.