WEALTHCO. ASSET MANAGEMENT
THIRD QUARTER 2020
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Third Quarter Highlights
On May 5, 2020, Timbercreek Financial stated “COVID-19’s impact on April’s interest and principal payments was negligible, and there have been no material signs of deterioration in the portfolio to date”. Timbercreek Financial invests in Canadian commercial mortgages and generates a yield of ~8.1%.
We made a new investment in Timbercreek’s US Commercial Mortgage Fund in the second quarter. The fund invests in mortgages on real estate assets in the US, focusing on first mortgages with an average of ~70% loan-to-value in target cities such as Portland OR, West Los Angeles CA, and Tampa Bay FL. The fund is well diversified by location and property type, and has a target return of 9.0%.
Adventus Realty Trust, which operates suburban office buildings in Atlanta GA and Chicago IL, collected 96% of rents in June. The company stated on its conference call that management is in discussions to refinance our 8.0% convertible debentures, to take advantage of lower interest rates.
We reduced our fair value estimates for our retail-related real estate projects in the second quarter, including: the Tsawwassen Power Centre in Tsawwassen BC, the Blue Oaks Plaza near Sacramento CA, and the Poplar Medical Centre in Calgary AB.
Subsequent to quarter-end, we reduced our fair value estimates for our Enercapita preferred shares, and our real estate holdings in Calgary.
The results speak for themselves.
OUR HARD WORK, AT YOUR SERVICE.
Download the WealthCo Asset Management third quarter fund fact and see how they have weathered market volatility now, and over the past 20 years.
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