Our Business.Vision, Goals, & Strategy

Strategic acquisitions, property improvement, and customer care.


The REIT has an established and diversified portfolio focused on western Canada. We currently own 36 income-producing office, retail and industrial properties representing 2.84 million sf (square feet) in gross leasable area (GLA). These high-quality properties feature stable occupancy and a diversified mix of tenants, some of whom have been in place for over 25 years. The REIT is externally managed, administered and operated by Melcor Developments Ltd. (Melcor) pursuant to the asset management and property management agreements entered into in conjunction with the IPO.

Melcor holds an approximate 53.0% effective interest in the REIT through ownership of all Class B LP units of Melcor REIT Limited Partnership through an affiliate and a corresponding number of special voting units of the REIT. The Class B LP units are economically equivalent to, and are exchangeable for, trust units. Melcor is the ultimate controlling party.

Melcor, a real estate company founded in 1923, has a rich history of growth and performance. Our objective is to continue that tradition by providing stable monthly cash distributions to unitholders. Our growth strategy is simple: acquire and improve. Together with Melcor, we have a proven track record of doing both.

Aquire

Our acquisition growth strategy is focused on:


  • Diversifying the asset class mix of our property portfolio
  • Increasing penetration in existing geographic markets to exploit competitive advantage
  • Expanding to adjacent geographic markets

Acquiring properties via our proprietary pipeline:

As Melcor completes development and leasing of commercial properties, the REIT has a first right to purchase each asset for its portfolio. This organic asset pipeline is unique to Melcor REIT. Based on projects currently being developed or planned to begin in the near-term, we expect this current acquisition pipeline to yield over 6 million sf of GLA over the next 5-10 years. The REIT also has the opportunity to participate in investment opportunities, joint ventures and mezzanine financing on Melcor projects under the Development and Opportunities Agreement.

Acquiring accretive income-producing properties:

We actively seek strategic third party property acquisitions that fit our SMART investment criteria: properties that have a good Story, are in the right Market, Accretive to AFFO per unit, at the Right price and in our Targeted areas. Target acquisitions include properties with potential to increase value through expansion, redevelopment or improved property management. Continued competition for assets which meet our investment criteria highlights the strategic importance of the Melcor pipeline and our first right to these properties.

Improve

Reviewing, improving, and optimizing our properties.


There are two key components to improving our existing assets –property management and asset enhancement. The goals of our property management and asset enhancement programs are to:

  • Maximize occupancy
  • Maximize tenant retention
  • Increase rental income

As a component of our improvement strategy, we also regularly review our portfolio to identify opportunities to recycle capital and pare our portfolio of non-core assets. Value monetized through recycled assets allows the REIT to reduce debt and provides additional capacity to acquire and improve core assets.

Our Commitment

Property Management

We are commited to being the Landlord of Choice by providing consistent, high quality service to our clients. Our hands-on, on-site building management identify issues early on for prompt resolution. We are commited to being the Landlord of Choice by providing consistent, high quality service to our clients. Our property management practices are designed to improve operating efficiency and reduce cost while at the same time increasing client satisfaction and thus retention rates.

Asset Enhancement

We continually improve our assets with value-adding investments that enhance property quality, which leads to higher occupancy and rental rates. These upgrades typically focus on increasing operating efficiency, property attractiveness, functionality and desirability. We use our intimate knowledge of the buildings we operate to support capital investment decisions, optimize operating efficiency and continuously improve our buildings for enhanced client satisfaction.

Capital Recycling

We continually review our portfolio to identify opportunities to recycle capital. Our capital recycling strategy focuses on pruning non-core assets with a view to mitigate against market and tenancy exposures and maximize return on investment.

Stable Distributions

Melcor has maintained a stable distribution of $0.67 per year for the past 5 years, providing unitholders with reliable monthly income.