Keystone Portfolio
The Keystone Portfolio consists of 24 communities in three regions of Canada, providing a balance between financial performance and tremendous upside through unlocking nearly $8.5M in additional total revenues over seven years from the lease-up of 149 vacant sites and the build-out of an additional 932 sites. A result of a 52% increase in revenues and 53.8% increase in NOI over 2018.

The Alberta Region consists of seven communities located in areas with strong demographics and easily accessible locations around Calgary and Edmonton. Financial highlights of the Alberta Region include 97% economic occupancy, average rents of $478 per month per occupied site, bad debt of less than 0.15% of rents. Located approximately 40 minutes south of the Edmonton International Airport, four of the communities are in close proximity to one another (less than one hour apart). Together, these communities contribute 41% of this Region’s total income and NOI. Three of these communities are located in Census Division 13, which has an average household income of $90,793 and an average home price of $331,263. There is potential to increase revenues by nearly $2M over a seven year period through the lease-up of 30 vacant sites, the expansion of 100 undeveloped sites and typical revenue increases among the occupied sites.

The Central Canada Region consists of six communities: two communities near Toronto, one near Montreal, one on the Canadian side of Detroit (Michigan) and two in northern Ontario. This Region is operating at nearly 100% economic occupancy, average rents are $322 per occupied site, vacancy is less than 0.35% for 2018, and bad debt is just over $2,000 (less than 0.05% of rents) for 2017 and 2018. The Region benefits from utility reimbursements of nearly 82.5% of the actual expense and home rental income of nearly $0.6M per year. In addition, there is potential to increase revenues by more than $2.7M over a seven year period through the lease-up of six vacant sites, the expansion of 243 undeveloped sites and typical revenue increases among the occupied sites.

The Atlantic Canada Region consists of 11 communities in three Provinces (New Brunswick, Prince Edward Island and Nova Scotia). Of the eight communities in New Brunswick, five communities (925 sites or 61% of the portfolio’s revenues) are located around Moncton, two are near Sussex and one is in Fredericton. This Region offers significant potential for further development and home sale opportunities as nearly $4.1M in home sales have occurred since 2016, which points to strong demand. Lease-up of 113 vacant sites, site build-out of 589 expansion sites and typical revenue increases among the occupied sites will yield an additional $3.7M in revenues over a seven year period.

Due Diligence Site:
https://www.crexi.com/properties/144700

Drone Site:
http://keystone-communities.232f.brandcast.io/

Contact:
Mike.nissley@colliers.com