Yorkton Continues Growth, Buys New Edmonton Apt. Complex

March 30, 2023
Mario Toneguzzi

Here’s a quick summary of the report by RENX (Real Estate News Exchange)

• Yorkton Equity Group Inc. is an Edmonton-based company focused on acquiring multi-family rental properties in strategic markets across Canada.
• The company has built an asset value of about $100 million in just over two years.
• Yorkton is broadening its investment strategy to include luxury rental properties tailored to more affluent renters.
• The latest acquisition is the two-building, 188-unit luxury multifamily residential complex known as The Dwell on about 3.31 acres of land in the Schonsee neighborhood of Edmonton.
• The property was built in 2022, achieved 100% occupancy, and has a projected total annual revenue of approximately $3.4 million based on the current rent roll.
• Yorkton expects the property to yield a capitalization rate of approximately 5% on an annual NOI of about $2.1 million. This property has the potential to grow in the coming years.
• The company went public in 2020 and is traded on the TSX Venture exchange (TSX.V: YEG).
• The company reported substantial revenue growth in 2022, with total assets growing from $14.2 million at inception of becoming a public company to $58.1 million on Sept. 30, 2022.
• Yorkton plans to continue with future property acquisitions leveraging its lender relationships and Canada Mortgage and Housing Corporation lending programs. This will enable it to obtain favorable mortgage terms.
• The company expects the overall demand for residential rental units in Canada to remain strong due to high mortgage interest rates and strict mortgage qualification requirements.
• The Canadian government plans to admit approximately 1,450,000 new immigrants to Canada, the vast majority of whom are expected to rent before contemplating home ownership, which is favorable to Yorkton’s multifamily rental property business model.
• Yorkton has a strong property management team and feels that residential accommodation is low-risk because it is a basic necessity.

Source:

https://renx.ca/yorkton-acquires-new-edmonton-apt-property-for-417m…

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Yorkton Equity Group Inc. (TSX.V: YEG) – Focused on the accretive acquisition of multifamily rental assets in strategic markets across Canada.
• An early-stage growth stock
• Accretive acquisition of multifamily rental properties
• Growing portfolio of rental properties in Western Canada
• Management team of over 30 years of real estate experience

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Reg Liyanage (B.Sc.)
Executive Vice-President