TDAM's real estate strategy emphasizes sustainable growth and diversification across property sectors
In an exclusive feature by Benefits and Pension Monitor, in partnership with TD Asset Management Inc. (TDAM), the TD Greystone Real Estate Strategy is highlighted for its focus on sustainable income and growth from high-quality assets across Canada.
This strategy has become one of Canada’s leading open-ended real estate investment vehicles, boasting a gross asset value of over $23bn and delivering an annualized performance of more than nine percent since its inception in 2004.
Matt Sych, head of portfolio and asset management at TDAM, explained their disciplined, risk-aware approach, rooted in prairie-based pension plans.
“We don’t overreact,” Sych said, describing their measured approach to real estate market fluctuations. He also emphasized that diversifying across property types, such as industrial and residential, has allowed their portfolio to remain stable and continue growing returns.
Luke Schmidt, head of transactions at TDAM, also discussed the importance of diversification. “By not being overly concentrated in any particular property type, we could maintain the stability and returns of our portfolio.
“The industrial sector, having led the market in recent years, was clearly an advantage for industrial-centric portfolios. However, it's now the residential sector that's taking the lead, and a more diversified portfolio will reap the benefits of this rotation,” he said.
Sych noted that multi-unit residential properties were integrated into the portfolio in 2008, citing their stability and the ability to adjust rents annually as an advantage during inflationary periods.
Mark Cooksley, head of development at TDAM, addressed misconceptions surrounding commercial real estate (CRE), particularly the belief that the office sector is in decline.
“The notion that the office sector is dead is far from accurate. Despite facing challenges, the office market is alive and evolving,” he said.
Cooksley also highlighted TDAM’s pioneering efforts in sustainability, such as creating Canada’s first net-zero industrial building in Halifax.
TDAM’s approach, characterized by long-term strategies and sustainability initiatives, aims to future-proof investments while ensuring continued growth and stability in the real estate landscape.
