Here’s a sign of the times:
The latest property owner to attempt an initial public offering is aiming to pay an annual yield around 2 per cent, an uncommonly low rate that illustrates the heavy demand for Canadian apartment buildings.
Late last week, Toronto-based Continuum Residential Real Estate Investment Trust filed the paperwork for its IPO. According to two people familiar with the offering, the issuer is looking to raise $300-million and would pay investors 2 per cent annually if its units are priced at the mid-point of their marketing range.
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Amid such heavy demand, Minto Apartment REIT was able to go public in 2018 at a 2.8-per-cent yield and, 16 months later, Continuum is targeting an even lower level.
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Continuum’s bet reflects the conditions of the current market. Canadian Apartment Properties REIT, the country’s largest publicly traded rental-unit owner, now trades at a 2.4-per-cent yield, and Minto’s units have performed so well since the REIT’s IPO that they now yield 1.9 per cent.
Sorry this is so late! A number of non-market things came up unexpectedly last night!
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.5419 % | 1,839.3 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.5419 % | 3,375.1 |
| Floater | 6.55 % | 6.75 % | 42,987 | 12.88 | 4 | -0.5419 % | 1,945.1 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0787 % | 3,388.5 |
| SplitShare | 4.65 % | 4.64 % | 57,242 | 3.97 | 7 | -0.0787 % | 4,046.6 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0787 % | 3,157.3 |
| Perpetual-Premium | 5.47 % | -16.47 % | 59,034 | 0.09 | 8 | 0.0683 % | 3,009.8 |
| Perpetual-Discount | 5.42 % | 5.49 % | 68,169 | 14.55 | 25 | 0.1246 % | 3,185.4 |
| FixedReset Disc | 5.72 % | 5.48 % | 164,532 | 14.61 | 66 | -0.3118 % | 2,049.2 |
| Deemed-Retractible | 5.22 % | 5.78 % | 62,195 | 7.87 | 27 | -0.0016 % | 3,157.5 |
| FloatingReset | 6.53 % | 7.02 % | 82,774 | 12.53 | 2 | 0.1980 % | 2,312.7 |
| FixedReset Prem | 5.15 % | 4.10 % | 164,375 | 1.71 | 20 | 0.0373 % | 2,594.1 |
| FixedReset Bank Non | 1.97 % | 4.05 % | 85,907 | 2.24 | 3 | 0.1804 % | 2,679.2 |
| FixedReset Ins Non | 5.57 % | 8.02 % | 98,868 | 7.88 | 21 | -0.2598 % | 2,074.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| TRP.PR.B | FixedReset Disc | -2.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 10.24 Evaluated at bid price : 10.24 Bid-YTW : 6.27 % |
| EMA.PR.C | FixedReset Disc | -2.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 17.50 Evaluated at bid price : 17.50 Bid-YTW : 5.99 % |
| EMA.PR.F | FixedReset Disc | -1.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 16.15 Evaluated at bid price : 16.15 Bid-YTW : 6.17 % |
| HSE.PR.C | FixedReset Disc | -1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 15.60 Evaluated at bid price : 15.60 Bid-YTW : 7.15 % |
| BAM.PF.A | FixedReset Disc | -1.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 18.58 Evaluated at bid price : 18.58 Bid-YTW : 5.96 % |
| BAM.PF.E | FixedReset Disc | -1.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 15.42 Evaluated at bid price : 15.42 Bid-YTW : 6.30 % |
| TRP.PR.A | FixedReset Disc | -1.47 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 12.72 Evaluated at bid price : 12.72 Bid-YTW : 6.35 % |
| BAM.PR.X | FixedReset Disc | -1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 12.43 Evaluated at bid price : 12.43 Bid-YTW : 6.13 % |
| BAM.PR.R | FixedReset Disc | -1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 14.26 Evaluated at bid price : 14.26 Bid-YTW : 6.23 % |
| BIP.PR.A | FixedReset Disc | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 17.94 Evaluated at bid price : 17.94 Bid-YTW : 6.80 % |
| IAF.PR.G | FixedReset Ins Non | -1.19 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.25 Bid-YTW : 7.95 % |
| GWO.PR.N | FixedReset Ins Non | -1.10 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.52 Bid-YTW : 9.68 % |
| IAF.PR.B | Deemed-Retractible | -1.03 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.11 Bid-YTW : 6.18 % |
| SLF.PR.J | FloatingReset | 1.05 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 12.50 Bid-YTW : 11.49 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TD.PF.M | FixedReset Disc | 74,985 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 23.09 Evaluated at bid price : 24.75 Bid-YTW : 5.01 % |
| EMA.PR.C | FixedReset Disc | 58,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 17.50 Evaluated at bid price : 17.50 Bid-YTW : 5.99 % |
| BAM.PF.D | Perpetual-Discount | 53,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 21.20 Evaluated at bid price : 21.20 Bid-YTW : 5.83 % |
| PWF.PR.L | Perpetual-Discount | 52,700 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 23.21 Evaluated at bid price : 23.51 Bid-YTW : 5.51 % |
| CM.PR.S | FixedReset Disc | 47,750 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 17.65 Evaluated at bid price : 17.65 Bid-YTW : 5.52 % |
| BMO.PR.Y | FixedReset Disc | 40,800 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-10-08 Maturity Price : 18.38 Evaluated at bid price : 18.38 Bid-YTW : 5.49 % |
| There were 34 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| MFC.PR.R | FixedReset Ins Non | Quote: 24.23 – 24.70 Spot Rate : 0.4700 Average : 0.3097 YTW SCENARIO |
| IFC.PR.C | FixedReset Ins Non | Quote: 16.74 – 17.19 Spot Rate : 0.4500 Average : 0.3134 YTW SCENARIO |
| TD.PF.A | FixedReset Disc | Quote: 16.77 – 17.07 Spot Rate : 0.3000 Average : 0.2010 YTW SCENARIO |
| NA.PR.G | FixedReset Disc | Quote: 19.73 – 19.98 Spot Rate : 0.2500 Average : 0.1576 YTW SCENARIO |
| PVS.PR.E | SplitShare | Quote: 25.51 – 25.78 Spot Rate : 0.2700 Average : 0.1816 YTW SCENARIO |
| NA.PR.C | FixedReset Disc | Quote: 21.14 – 21.35 Spot Rate : 0.2100 Average : 0.1302 YTW SCENARIO |