Building trust: Solid operational efficiency and a low interest rate environment will support industry growth

The Real Estate Investment Trusts (REIT) industry in Canada has grown consistently over the five years to 2019, as solid operational efficiency and a low interest rate environment laid the foundation for growth. The industry benefited from a low level of revenue volatility that is backed by a steady stream of income from rentals amid stable economic growth. Industry revenue grows in line with the economy and benefits from the steady stream of income from rents. The overall health of the economy has been sound over the five years to 2019, which has benefited the industry through higher levels of investment to satisfy the increasing demand for properties by businesses. The outlook for the industry over the five years to 2024 is expected to be positive...read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 14-19
3.1%
Forecast Growth 19-24
Profit
Employment
11,533
Businesses
158

Industry Threats & Opportunities

  • Industry revenue grows in line with the economy and benefits from the steady stream of income from rents
  • Canada has a highly concentrated banking sector
  • The advantages of a listed REIT share are attractive to an aging population
  • Industry Report - Industry Key Buyers Chapter

    The Canadian Real Estate Investment Trusts (REIT) industry is categorized by a low level of market share concentration, with the top four REITs accounting for an estimated 36.0% of industry revenue. Many of the top players have lost market share to smaller REITs entering the industry, which has slightly diluted the concentration over the five years to 2019. However, acquisition activity from large REITs has increased, which dampened the dilution from new enterprises entering the industry.Consolidation activity is expected to continue in the first half of the next five years, as weaker enterprises look to shore up their capital bases by merging with or selling assets to larger companies. Con...purchase to read more.

    Additional Insights for the Real Estate Investment Trusts Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Real Estate Investment Trusts Industry are

  • Superior financial management and debt management
  • Access to highly skilled workforce
  • Access to real estate in key locations
  • IBISWorld analysts also discuss how external factors such as Rental vacancy rate and Corporate profit in the Real Estate Investment Trusts industry impact industry performance..

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    What's in this report

    What is the Real Estate Investment Trusts Industry?

    This industry comprises legal entities that are categorized as real estate investment trusts (REITs). REITs, similar to mutual funds, use the pooled capital of many investors to directly invest in income-yielding properties. To qualify as an REIT, a company or trust must annually distribute all of its taxable income to shareholders in the form of dividends. Income is largely generated from rent, interest and capital gains.

    Industry Products
  • Equity REITs (residential properties)
  • Equity REITs (commercial properties)
  • Mortgage REITs
  • Hybrid REITs
  • Industry Activities
  • Purchasing property such as commercial, industrial, and residential real estate
  • Developing properties such as commercial, industrial, and residential real estate
  • Managing properties such as commercial, industrial, and residential real estate
  • Financing mortgages
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Rental vacancy rate
  • Corporate profit
  • Overnight rate
  • Per capita disposable income
  • Number of businesses

  • Current Performance
  • Structural strength
  • Low interest rates
  • Corporate profit and investment
  • Chart: Revenue Growth

  • Industry Outlook
  • Aging population
  • Changing business model
  • Industry participants
  • Table: Real Estate Investment Trusts Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Real Estate Investment Trusts Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Men's Clothing Stores in Canada
  • Finance and Insurance In Canada
  • Private Equity, Hedge Funds & Investment Vehicles in Canada
  • Hotels & Motels in Canada

  • Key Selling Industries
  • Finance and Insurance In Canada
  • Real Estate Sales & Brokerage in Canada

  • Products & Services
  • Equity REITs (commercial properties)
  • Equity REITs (residential properties)
  • Mortgage REITs
  • Hybrid REITs
  • Chart: Real Estate Investment Trusts Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Office, hotel and industrial space
  • Retail
  • Residential
  • Healthcare
  • Chart: Major Market Segmentation for the Real Estate Investment Trusts Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitOtherDepreciationWages
  • Chart: Cost Structure Benchmarking – Sector vs Real Estate Investment Trusts

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Real Estate Investment Trusts Industry

  • Industry Globalization
    RioCan Real Estate Investment Trust, H&R Real Estate Investment Trust, SmartCentres Real Estate Investment Trust, CAPREIT,
  • Table: RioCan Real Estate Investment Trust - financial performance
  • Table: H&R Real Estate Investment Trust - financial performance
  • Table: SmartCentres Real Estate Investment Trust - financial performance
  • Table: CAPREIT - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Real Estate Investment Trusts Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Real Estate Investment Trusts Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Total Retail Sales (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Equity Reit
  • A company that actually owns or operates its real estate investments.
  • Funds From Operations
  • A measurement used to define cash flow from operations for REITs calculated by adding depreciation and amortization expenses to earnings.
  • Hybrid Reit
  • A company that generates income from equity and mortgage operations, specifically rent, capital gains and interest.
  • Mortgage Reit
  • A company that provides real estate mortgages to real estate developers and owners.
  • Mortgage-Backed Securities
  • An asset-backed security or debt obligation that is secured by a mortgage or collection of mortgages.
  • What Our Customers Say

    Why buy this report?

    The Real Estate Investment Trusts market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Real Estate Investment Trusts:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Real Estate Investment Trusts market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Real Estate Investment Trusts, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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