CANADIAN APARTMENT WALKS AWAY WITH REIT WALKABILITY

A new report from Desjardins Capital Markets looks at the “Walk Score” of Canada’s four major Canadian real estate investment trusts, a measure that could ultimately produce a higher market value for those REITs.

Michael Markidis and David Chrystal, analysts with Desjardins, found that Canadian Apartment Properties had the best walk score of the REITs measure with Interrent finishing second.

“Empirical evidence suggests that higher walkability is positively correlated with market value. Holding other factors constant, we believe a similar relationship may exist for rent growth over time,” the pair wrote in a report.

The Walk Score is a measure that quantifies the walkability of a given address based on how close a person can get to certain amenities by foot. Walk Score was first created in 2014 by a Seattle group and creates a score range from 0-100 by analyzing 13 categories for amenities using Google maps — full points awarded for amenities within a quarter- mile ( 400 metres) walking distance and destinations more than a mile receiving zero points.

CAP REIT’s entire portfolio received a 71, which fits into the 70- 89 range of the walk score. That range is regarded as very walkable. The analysts said CAP REIT’s score was helped by its focus in the Toronto region where its average weighted score was 74. InterRent’s score was 67. The report suggests that high walk scores in 14 major metro markets in the U.S. have impacted the value of single family residences which could translate into gains for apartment owners.