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Farewell to a top-performing REIT: RBC’s Neil Downey reflects on Canadian Real Estate Investment Trust

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For CREIT unit holders, the returns were good: $10,000 invested in September, 1993 was worth $229,000 at the end of last year and $261,000 when the plan of arrangement was completed last week.Peter J. Thompson/National Post

Neil Downey, managing director of global research at RBC Capital Markets, said goodbye to an old friend this week, when Choice Properties REIT and Canadian Real Estate Investment Trust (CREIT) completed the plan of arrangement that will see the merged entity become what he calls “Canada’s premier diversified REIT.”

That merger marks “the end of an era for CREIT as a standalone entity,” after it was taken public almost 25 years back, Downey said.

At the operations level, the REIT was a very strong performer: over the 24-plus years that the fund was public, it posted a compound annual growth rate in funds from operations per unit, in distributions per unit and a 20 year internal rate of return of 8 per cent, 5 per cent and 14 per cent respectively.

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