Growth Strategy
The REIT employs both the internal and external growth strategies described below to achieve its objectives.
Internal Growth Through Active Asset Management
The REIT’s internal growth strategy has been to focus on increasing rental income through actively managing the tenant mix of each property, leasing vacant space and maintaining good relations with tenants.
Arcturus Limited Partnership (“Arcturus”) provides property management services to the REIT in respect of the REIT's properties excluding the SmartCentres portfolio.
As part of the SmartCentres Transaction, SmartCentres Management (Canada's largest developer and operator of unenclosed shopping centres), pursuant to a management contract (the “SmartCentres Property Management Contract”), is engaged to conduct leasing, development and re-development of all of the REIT’s Properties. The REIT believes that it realizes significant benefit from SmartCentres’ relationships with many of the premier tenants in Canada, including many of those in the REIT’s current portfolio. Under the SmartCentres Property Management Contract, SmartCentres Management provides property management services for the SmartCentres Portfolio.
Management of the REIT works closely with SmartCentres to develop leasing strategies for each of the Properties that reflects the nature of the property and its position within the marketplace, as well as prevailing and forecasted economic conditions. The REIT’s priority continues to be on enhancing the performance of the Properties. The REIT will continue to seek opportunities to lease-up vacancies, improve building conditions and where appropriate redevelop individual Properties to attract and retain the tenants that enable the REIT to meet the needs of the shoppers in the communities served.
External Growth Through Acquisitions
In conjunction with the REIT's internal growth strategy, the external growth strategy is to focus on acquisitions. Throughout any acquisition process, the REIT identifies potential property acquisitions using investment criteria that focus primarily on return on equity, security of cash flow, the potential for capital appreciation and the potential to increase value by more efficient management of the assets being acquired, including accessing capital for expansion and development of those assets, which access might not otherwise be available to competitors and other property owners.