Corporate Strategy

Growth Strategy

Whiterock seeks to achieve sustained, long term growth with a double-pronged strategy comprised of both internal and external expansion.

Internal (ie. organic) growth within the REIT, principally focuses on:

  • Increasing rental income through actively managing the tenant mix of each property
  • Leasing vacant space and maintaining good relations with tenants

The extensive experience of the Whiterock management team uncovers upside in individual properties with the intention of increasing distributable income to unitholders.

While Whiterock seeks to acquire properties occupied by top-tier tenants with long-term leases, the REIT will, as required, access the leasing community and retain appropriate brokers to replace and upgrade tenants. Whiterock actively manages its ongoing capital improvement program to ensure that the quality of the portfolio meets the standards of the most discriminating tenants and allows the properties to retain their structural and aesthetic integrity.

External growth is achieved via accretive acquisitions. Our acquisition strategy focuses on acquiring high-quality office, industrial and retail assets in primary markets across Canada. Key metrics for consideration in acquisitions include:

  • Well Located: The oldest real estate criteria is location, location, location and it holds true in our strategy. Assets that are well located should perform better over time by attracting more tenants, and enjoying increasing rental rates.
  • Strong Leasing: Whiterock REIT is focused on consistent cash distributions to unitholders and this starts with well-leased properties. This means leases to credit worthy tenants, with significant term remaining on the leases and rental rates in place that are at or below current market rents.
  • Limited Deferred Maintenance: Properties that have limited deferred maintenance were actively maintained by previous owners. The building systems work better, the physical plant is in better condition and tenants are happier than those at buildings that have been neglected by landlords. Whiterock looks for assets that are in good physical condition.
  • Appropriate Cost Basis: Purchasing a building below replacement cost is a defensive measure. It is usually not economically viable for a developer to build new, and then try to lease space to our tenants at compelling rates. That is, the developer would require much higher rental rates to attract our tenants (this, of course, depends on how far below replacement cost we were able to purchase the asset).