Welcome to our inaugural TAS View! The team and I want to use this as a platform to share our current lens on what we are seeing, hearing and doing. We also want to share our insights as we navigate the challenges ahead and the opportunities we are harnessing.
Canada’s real estate market remains in a state of uncertainty largely due to the correlated impact of interest rate levels and cap rate valuations. While the Bank of Canada has indicated its intent to level off interest rate increases, the test will be on March 8th when it provides its next economic outlook. This uncertainty has resulted in a general market pause on the transaction front as it specifically relates to deal transactions. Regardless of what happens next, we are in the fortunate position of having available capital to deploy in our newest strategy.
On the consumer front, housing sales and prices declined last quarter as the market remains cautious due to higher borrowing costs. One interesting note is that banks have been working with consumer borrowers to transfer the increase in interest rate impact towards the principal of their mortgage – an indication from the banks in terms of market confidence and a key stabilizing move towards market value. The banks’ move reflects the broader optimism in the Canadian market, supported by economic stability, strong population and immigration growth and a low unemployment rate. Supply and demand fundamentals remain strong, with demand for housing still far exceeding supply. This stability is consistent with what we saw throughout various economic cycles, including the pandemic, and we believe these fundamentals will persist in 2023.
TAS and Innovation
As a company, we have always put emphasis on innovation and leadership and we’re excited to see that our emergence as a global leader in Impact Investing is being recognized beyond our borders. As we spend more time with European investors, we are seeing a strong interest in the Canadian market and specifically how we drive profit and purpose at TAS. And on the topic of innovations, this is what ChatGPT has to say about why European investors are attracted to TAS:
“European investors who are interested in Canadian real estate with an impact and ESG focus are attracted to TAS Impact as a manager and investment opportunity for several reasons. Firstly, TAS Impact is a reputable and experienced real estate investment manager that specializes in impact and ESG-focused investments. This gives investors’ confidence that their investments will be managed with a long-term view that prioritizes sustainability, social impact, and responsible governance.
Secondly, TAS Impact has a track record of successful investments in the Canadian real estate market, with a focus on sustainable and socially responsible projects. This gives investors assurance that their investments will be managed with a high level of expertise and due diligence.
Finally, TAS Impact provides a range of investment opportunities, including direct investments in real estate projects and fund investments that give investors exposure to a diversified portfolio of impact-focused real estate investments. This flexibility allows investors to choose the investment that best aligns with their investment goals and risk tolerance.
Overall, European investors interested in impact and ESG-focused real estate investments are attracted to TAS Impact as a manager and investment opportunity because of its expertise, track record, and range of investment options.”
A Book Worth Reading:
Am I Being Too Subtle, Sam Zell
Sam Zell is a true legend! I recently heard him speak at a YPO Real Estate conference and was compelled to read his autobiography. Zell is a serial entrepreneur, a real estate legend and all-round rebel. His story is fascinating and inspiring. Hope you enjoy it as much as I did!
A Podcast Worth Listening To:
Dr. Gabor Maté — The Myth of Normal, Metabolizing Anger, Processing Trauma, and Finding the Still Voice Within (#620)
I am an avid podcast listener and Tim Ferriss has been a go to for me for several years. In this episode, he speaks with renowned Vancouver based Dr Gabor Mate on his lates book The Myth of the Normal: Trauma, Illness and Healing in a Toxic Culture exploring a range of topics on how our childhood experiences, from the womb onwards, can have a such a lasting impact on us and indicative of many of the traits and characteristics that we display as adults. The podcast is a great overview but I have also read the book and for anyone who is interested in the realm of personal development this is a fascinating exploration.