The Forum Real Estate Income and Impact Fund (REIIF) has acquired two newly built student accommodation properties in Ontario to capitalize on the growing demand for purpose-built student housing amid a market undersupply.

Target Information

The Forum Real Estate Income and Impact Fund (REIIF) recently reported its financial outcomes for the quarter ending June 30, 2024. Investors in Series F have achieved a time-weighted return of 7.46% year-to-date, which incorporates a monthly distribution of 3.97 cents, equating to a projected annual return of 4.2%. Over the past twelve months, REIIF has delivered an impressive time-weighted return of 15.45%. The Fund's portfolio predominantly consists of Purpose-Built Student Accommodation (PBSA) properties, which have demonstrated significant leasing momentum in anticipation of the upcoming academic year. This surge in demand is largely attributed to the scarcity of purpose-built student housing across Canada.

Recent reports from The Globe and Mail have emphasized the critical shortage of student housing impacting universities and colleges nationwide, despite recent limitations on international student visas imposed by the government. The ongoing deficiency in purpose-built accommodations exacerbates supply constraints in the general rental market, thereby driving robust rental growth across key Canadian cities. Higher interest rates, increasing government fees, and escalating construction costs further intensify the imbalance between supply and demand, suggesting that strong rental growth is likely to persist in the long term.

Industry Overview in Canada

The Canadian real estate market, particularly in the rental sector, is facing unprecedented challenges stemming from a substantial lack of available housing stock. This situation is critical in the context of student housing, where the demand is outstripping supply, particularly in urban centers across