Canadian REITs have been busy. Over the past year, 26 major acquisitions totaling more than $3.25 billion changed hands across the country. That's not just noise in the market. It's a signal about where institutional money sees opportunity right now.

The numbers tell a story about conviction. When REITs deploy this much capital in a concentrated period, they're betting on fundamentals that go beyond short-term plays. And the distribution across sectors reveals something even more interesting: this wasn't panic buying or opportunistic bottom-feeding. This was strategic, deliberate portfolio building.

‍

Retail Makes a Statement

Let's start with the headline grabber. Primaris REIT dropped over $1.3 billion on three shopping centres in less than a year. That's bold, especially when conventional wisdom still questions the future of physical retail.

The biggest transaction? Promenades St-Bruno in Montreal for $565 million. This wasn't some distressed asset fire sale. The property sits on 154 acres, spans 1.1 million square feet, and was generating $271 million in annual sales. The math works out to $917 per square foot in productivity. That's healthy, not desperate.

Hamilton's Lime Ridge Mall followed at $416 million. Major anchors include Sport Chek, H&M, Lululemon, and Canada's largest Tesla retail location. Then came Les Galeries de la Capitale in Quebec City for $325 million, a property with 225-plus stores on 91 acres.

These aren't dying malls limping along. They're dominant regional centres with redevelopment potential and excess land. Primaris saw what others might have missed: strong bones, good locations, and room to densify. The retail apocalypse narrative doesn't apply to every property, and smart money knows it.

‍

Residential Leads the Pack (And That's a Problem)

Here's where the real volume shows up. Residential acquisitions accounted for 31% of total transactions, making it the most active sector over the 12-month period.

But let's be honest about what this actually means. When institutional REITs buy up residential properties at this scale, they're converting what could be homeownership opportunities into permanent rental stock. That's not a neutral market trend. It's a structural shift that makes it harder for regular Canadians to build equity and wealth through real estate.

CAPREIT went aggressive with seven deals totaling over $400 million. In November 2024, they picked up a three-property Montreal portfolio with 355 suites for $144 million. Later, they added The Pendrell in Vancouver, a 21-storey tower with 173 units, for $137 million.

CAPREIT also closed on Sterling Manor in Regina for $76.3 million (320 apartments), a 121-suite property called AVA in Montreal for $54.5 million, and 162 townhomes across two London communities for $56.2 million.

Boardwalk REIT focused on Western Canada. They picked up three communities in Laval totaling $249 million, then moved into Calgary with Elbow 5 Eight for $93 million (255 units) and The Circle for $77.6 million (295 units).

The strategy is clear across all these deals: target properties with below-market rents, then extract "organic growth" as leases roll. That's business-speak for raising rents. And when institutional landlords control this much housing stock, tenants have fewer options and less leverage.

Here's what concerns me most. These aren't just apartment buildings. CAPREIT bought townhomes in London. Boardwalk picked up entire communities. These are housing types that families traditionally buy to build equity. Now they're locked into corporate rental portfolios indefinitely.

The regional spread tells you where rental demand is tightest, but it also shows you where REITs see the best opportunity to profit from housing scarcity. Vancouver, Montreal, Calgary, Regina. These are markets where people already struggle to afford homeownership. Adding institutional competition for residential properties only makes that harder.

Yes, rental housing serves a purpose. Not everyone wants to own, and some people need flexibility. But when over $400 million in residential real estate shifts from potential ownership to permanent rental status in a single year, we're not just meeting rental demand. We're reducing the pathways to homeownership for an entire generation.

‍

Industrial Stays Tactical

Industrial didn't dominate headlines, but it didn't need to. Four strategic acquisitions showed REITs still see value in logistics and distribution assets, especially in markets with barriers to new development.

Dream Industrial REIT made three moves worth noting. They grabbed 27.5 acres in North Vancouver for $143 million, a portion of the Stellantis Assembly Plant in Brampton covering 32 acres for $80 million, and a 192,000-square-foot property in Richmond Hill for $60 million.

Choice Properties REIT also stayed active, picking up five properties from Loblaws for $178.9 million and acquiring a 50% interest in 6941 Kennedy Road in Mississauga for $89.6 million.

These weren't speculative plays. They were about securing well-located assets in the Greater Toronto Area and Greater Vancouver, two markets where industrial land is increasingly scarce and user demand remains strong.

‍

What the Geography Reveals

Follow the money, and you'll see where institutional investors think Canadian real estate works best right now.

The Greater Toronto Area pulled in multiple acquisitions across industrial and mixed-use properties. Greater Vancouver saw strong residential activity, particularly at the premium end. Montreal and Quebec City attracted major retail and residential investments. Calgary captured significant residential rental interest.

This isn't random. These are Canada's major metros where population growth, employment hubs, and infrastructure support long-term real estate value. REITs aren't gambling on tertiary markets hoping for a turnaround. They're doubling down on proven geographies.

‍

How They Financed It

The financing approaches varied, which tells you something about market conditions and deal structures.

Primaris used mixed consideration structures combining cash and equity. Automotive Properties REIT leaned on vendor take-back mortgages for some transactions. Several deals involved assuming existing debt at favorable rates, which made sense when older mortgages carried lower interest costs than current market rates.

The ability to close these deals using diverse financing tools shows liquidity hasn't frozen up. Capital is available for the right assets at the right price, even if the days of ultra-cheap money are behind us.

‍

What This Means for the Market

When REITs deploy $3.25 billion in a 12-month window, they're not guessing. They've run the numbers, stress-tested the assumptions, and decided these assets will generate returns that justify the capital.

The concentration in residential tells a more complicated story than just market demand. Yes, Canada needs more housing. But the solution shouldn't be institutional investors buying up existing residential stock and locking it into rental portfolios. That creates a system where people rent from corporations their entire lives instead of building equity through ownership. The retail investments suggest that quality shopping centres with strong fundamentals and redevelopment potential still have a future. The industrial acquisitions reinforce that logistics real estate in supply-constrained markets remains a safe bet.

But beyond the sector specifics, the sheer volume of activity signals confidence. These are long-term holds backed by institutional capital. REITs are public companies with sophisticated investors who demand transparency and returns. They don't write nine-figure cheques on hope.

The premiums paid for quality assets in key markets also tell you something. When Primaris drops $565 million on a single shopping centre, they're paying for proven performance and future optionality. When CAPREIT chases newly built residential assets with below-market rents, they're banking on organic income growth as leases roll.

‍

The Bigger Picture

Real estate cycles move in waves, and right now we're seeing institutional capital flow toward assets that offer defensive income streams and growth potential. But the residential piece deserves scrutiny. When corporate landlords control more housing stock, it fundamentally changes the market dynamics for everyone else.

Retail, at least the dominant regional kind, offers anchor tenants on long leases plus land for future densification. Industrial benefits from e-commerce tailwinds and limited new supply. Those sectors make sense for REIT activity. But residential is different. Housing is where most Canadians build wealth. When that opportunity gets converted into a rent-extraction model for institutional investors, we're not just seeing market activity. We're watching homeownership slip further out of reach.

The fact that REITs are actively buying rather than sitting on cash or deleveraging suggests they see the current environment as a window, not a warning. Interest rates have stabilized even if they haven't dropped dramatically. Cap rates have adjusted to reflect the new cost of capital. And deal flow is happening at prices that pencil out for sophisticated buyers.

For individual investors, sellers, or anyone trying to read the tea leaves on Canadian real estate, this acquisition spree offers a data point worth considering. When the smart money moves, it's worth asking why. But it's also worth asking what gets left behind when institutional capital dominates residential markets.

The answer here seems straightforward on the surface: Canada's major markets still attract investment. Quality assets with strong fundamentals continue to draw capital even when macro conditions get choppy. But for residential specifically, we need to ask harder questions about whether this trend serves Canadians well in the long run.

When people spend their entire lives paying rent to corporate landlords instead of building equity in their own homes, that's not just a market outcome. It's a societal shift that concentrates wealth at the top and leaves everyone else on the treadmill.