Our approach to rent collection in this environment is a balancing act between being firm and fair, assisting tenants, and preserving relationships. We want to say a big “thank you” to those tenants in our portfolio who paid their April rent. In other instances, landlords were forced to work on rent deferral programs with tenants whose businesses were directly impacted by the government-mandated shutdown. There were delays by some tenants who were attempting to preserve cash but ultimately paid their rent. Residential and commercial tenants who legitimately could pay their rent in fact did. Landlords around the world learned very quickly how their real estate portfolios would absorb the shock of the new reality.Īs bad as the press reports predicted, there were actually many positive outcomes. Over the past four weeks, our Nicola Wealth Real Estate (NWRE) team has been focused on rent collection for our Canadian and US income properties. Revised budgeting and cash flow forecasting are required to understand how long properties can weather the storm. Owners have financial obligations such as mortgage payments, operating costs, and property taxes not to mention the distribution of cash flow to investors. The current environment tests the stability of real estate as a reliable investment in terms of the fund composition, asset type, geography, and tenant profile. Real estate has historically been viewed as a desirable product in any investment portfolio. How long the government imposed shutdown will last and how severe the impact will be on rental income and property values is a concern for the entire real estate industry. Everyone, including all levels of government, was caught off guard putting us on the defensive. The foundation of real estate is undergoing a serious “stress test” the likes of which has never been experienced before. But these are not normal times and this has changed. In a normal environment, real estate functions consistently: tenants pay rent, operating costs, and property taxes are based on the contractual agreements allowing landlords to pay their mortgages and maintain the buildings in accordance with the lease.
April rent collection was the first of several “monthly tests” we will face in this COVID-19 environment but it has provided some data points we can share with our investors.
#Holliswealth wealth tracker update
I want to give an update on what has transpired with our Nicola Wealth Real Estate Funds since our last newsletter. Pinball Clemons: ‘You’re doing phenomenal work, but we still need more of you.By Mark Hannah, Managing Director – Real Estate.Scotia to pay $20 million in client compensation The goal at the time was to create a one-stop shopping model for clients, according to executives.įed is manipulating the dollar, says HollisWealth manager The sale would be a step forward in Scotia’s restructuring of its wealth management business, which combined services such as financial planning, investment management, and insurance products during a rebranding it underwent last year. The firm was renamed HollisWealth in late 2013, and its former head, Tuula Jalasjaa, left the firm earlier this year.
HollisWealth was acquired by ScotiaBank over four years, starting with a 2007 purchase of an 18% stake in the firm’s predecessor parent company DundeeWealth for $348 million and ending with Scotia buying the remaining shares for $2.3 billion. While wealth management firms face profit-shrinking challenges, insurers are gaining interest in such companies due to modest growth and low interest rates that are dampening their ability to achieve returns from low-risk investments. The network currently provides advisory services on investments, insurance, mortgages, and estate planning, among others. People familiar with the matter say Quebec-based insurer Industrial Alliance Insurance and Financial Services is ahead among prospective buyers, though the likelihood of a sale pushing through or the amount being offered was not mentioned.Ī successful sale of HollisWealth would let Industrial Alliance control a network of 800 advisors in more than 300 Canadian locations. As the wealth management industry is squeezed by slowing growth and increasing regulation of fees and commissions, Bank of Nova Scotia is reportedly engaging in talks to sell independent advisor network HollisWealth, according to an article by the Globe and Mail.
0 kommentar(er)
