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TOURMALINE INCREASES QUARTERLY DIVIDEND BY 11%, DECLARES A $1.25/SHARE SPECIAL DIVIDEND AND PROVIDES OPERATIONAL UPDATE

 Tourmaline Oil Corp. (TSX: TOU) ("Tourmaline" or the "Company") is pleased to announce a quarterly dividend increase and special cash dividend and provide an operational update. QUARTERLY DIVIDEND INCREASE AND SPECIAL DIVIDEND Tourmaline…

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 Tourmaline Oil Corp. (TSX: TOU) ("Tourmaline" or the "Company") is pleased to announce a quarterly dividend increase and special cash dividend and provide an operational update.

QUARTERLY DIVIDEND INCREASE AND SPECIAL DIVIDEND

Tourmaline is pleased to announce both a quarterly base dividend increase of 11% and the declaration of a special cash dividend of $1.25 /share, given the continued strong financial performance and outlook for the Company.  The quarterly dividend will be increased from $0.18 /share to $0.20 /share beginning in the first quarter of 2022.  The special dividend, the second by the Company, is part of Tourmaline's comprehensive shareholder return plan and will be paid on February 1, 2022 , to shareholders of record on January 25 , 2022.  This special cash dividend is designated as an "eligible dividend" for Canadian income tax purposes.

The Company anticipates paying further special dividends in 2022 as well as utilizing its normal course issuer bid during the course of the year.  Net debt (1) is forecast below the long-term net debt target of $1.0 - $1.2 billion .

EP OPERATIONS UPDATE

  • Tourmaline achieved the 2021 exit production target of 500,000 boepd and expects first quarter 2022 production to range between 500,000 and 510,000 boepd.
  • Current liquids production is 115,000 bpd, including 35,000 bpd of condensate.
  • Full-year 2022 production guidance remains at 500,000 boepd on unchanged EP capital spending of $1.125 billion .
  • Q4 2021 production averaged approximately 485,000 boepd, within the lower end of guidance.  Production was impacted by approximately 6,000 boepd in December due to weather related outages and minor EP operational and start-up delays.
  • The Company plans to drill 85 wells (gross), complete 97 wells (gross) and bring on production 83 new wells (gross) during the first quarter of 2022.  The Company accelerated the drilling of one NEBC pad and fracs on two additional pads into 2H December 2021 from Q1 2022, for operational continuity and to be in a position to take advantage of stronger winter natural gas prices.
  • Tourmaline is currently operating 13 drilling rigs and five frac spreads across the three operated EP complexes.
  • The two 2H 2021 BC major facility expansions were completed on budget.  The 2022 EP capital budget contains minimal new facility expenditures resulting in anticipated record 2022 capital efficiencies of approximately $6,000 /boepd.

________________________________

(1)

"Net debt" is defined as bank debt and senior unsecured notes plus working capital deficit (adjusted for the fair value of financial instruments, short-term lease liabilities, short-term decommissioning obligations and unrealized foreign exchange in working capital deficit). See "Non-GAAP Financial Measures" in this news release and in the Company's Q3 2021 Management's Discussion and Analysis.

Reader Advisories

CURRENCY

All amounts in this news release are stated in Canadian dollars unless otherwise specified.

FORWARD-LOOKING INFORMATION

This news release contains forward-looking information and statements (collectively, " forward-looking information ") within the meaning of applicable securities laws. The use of any of the words "forecast", "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "on track", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information. More particularly and without limitation, this news release contains forward-looking information concerning Tourmaline's plans and other aspects of its anticipated future operations, management focus, objectives, strategies, financial, operating and production results, business opportunities and shareholder return plan, including the following: the use of the normal course issuer bid; the future declaration and payment of dividends and the timing and amount thereof which assumes, among other things, the availability of free cash flow to fund such dividends; anticipated petroleum and natural gas production and production growth for various periods including estimated production levels for Q1 2022 and full-year 2022; expected full-year 2022 EP capital spending levels; the number of expected wells to be drilled, completed, and brought on production in Q1 2022; anticipated winter natural gas prices; and anticipated 2022 capital efficiencies. The forward-looking information is based on certain key expectations and assumptions made by Tourmaline, including expectations and assumptions concerning the following: prevailing and future commodity prices and currency exchange rates; the degree to which Tourmaline's operations and production may be disrupted by circumstances attributable to supply chain disruptions and the COVID-19 pandemic and the responses of governments and the public to the pandemic; applicable royalty rates and tax laws; interest rates; future well production rates and reserve volumes; operating costs, the timing of receipt of regulatory approvals; the performance of existing wells; the success obtained in drilling new wells; anticipated timing and results of capital expenditures; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the benefits to be derived from acquisitions; the state of the economy and the exploration and production business including the impacts of  the COVID-19 pandemic and the responses of governments and the public to the pandemic thereon; the availability and cost of financing, labour and services; and ability to market crude oil, natural gas and natural gas liquids successfully. Without limitation of the foregoing, future dividend payments, if any, and the level thereof is uncertain, as the Company's dividend policy and the funds available for the payment of dividends from time to time is dependent upon, among other things, free cash flow, financial requirements  for the Company's operations and the execution of its growth strategy, fluctuations in working capital and the timing and amount of capital expenditures, debt service requirements and other factors  beyond the Company's control. Further, the ability of Tourmaline to pay dividends will be subject to applicable laws (including the satisfaction of the solvency test contained in applicable corporate legislation) and contractual restrictions contained in the instruments governing its indebtedness, including its credit facility.

Although Tourmaline believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Tourmaline can give no assurances that it will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; supply chain disruptions; the uncertain impacts of COVID-19 on Tourmaline's business, and the societal, economic and governmental response to COVID-19; the uncertainty of estimates and projections relating to reserves, production, revenues, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; interest rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to complete or realize the anticipated benefits of acquisitions or dispositions; ability to access sufficient capital from internal and external sources; uncertainties associated with counterparty credit risk; failure to obtain required regulatory and other approvals; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. Readers are cautioned that the foregoing list of factors is not exhaustive.

Additional information on these and other factors that could affect Tourmaline, or its operations or financial results, are included in the Company's most recently filed  Management's Discussion and Analysis (See "Forward-Looking Statements" therein), Annual Information Form (See "Risk Factors" and "Forward-Looking Statements" therein) and other reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website ( www.sedar.com ) or Tourmaline's website ( www.tourmalineoil.com ).

The forward-looking information contained in this news release is made as of the date hereof and Tourmaline undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless expressly required by applicable securities laws.

BOE EQUIVALENCY

In this news release, production information may be presented on a "barrel of oil equivalent" or "BOE" basis. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, as the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

NON-GAAP FINANCIAL MEASURES

This news release includes references to "net debt" which is a financial measure commonly used in the oil and gas industry and does not have a standardized meaning prescribed by International Financial Reporting Standards ("GAAP"). Accordingly, the Company's use of this term may not be comparable to similarly defined measures presented by other companies. Management uses the term "net debt" for its own performance measures and to provide shareholders and potential investors with a measurement of the Company's efficiency. Investors are cautioned that this non-GAAP measure should not be construed as an alternative to financial measures determined in accordance with GAAP as an indication of the Company's performance. "Net debt" is defined as bank debt and senior unsecured notes plus working capital deficit (adjusted for the fair value of financial instruments, short-term lease liabilities, short-term decommissioning obligations and unrealized foreign exchange in working capital deficit). See "Non-GAAP Financial Measures" in the most recent Management's Discussion and Analysis for more information on the definition and description of this term.

OIL AND GAS METRICS

This news release contains certain oil and gas metrics which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included in this document to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the Company's future performance and future performance may not compare to the Company's performance in previous periods and therefore such metrics should not be unduly relied upon.

SUPPLEMENTAL INFORMATION REGARDING PRODUCT TYPES

This news release includes references to 2021 exit production, Q4 2021 production, Q1 2022 expected average daily production and full-year 2022 expected average daily production. The following table is intended to provide supplemental information about the product type composition for each of the production figures that are provided in this news release:


Light and Medium
Crude Oil (1)


Conventional
Natural Gas


Shale Natural Gas


Natural Gas
Liquids (1)


Oil Equivalent
Total


Company Gross
(Bbls)


Company Gross
(Mcf)


Company Gross
(Mcf)


Company Gross
(Bbls)


Company Gross
(Boe)

2021 Exit Production........

40,000


1,334,000


1,000,000


71,000


500,000

Q4 2021
Production........................

40,850


1,300,000


969,500


65,900


485,000

Q1 2022 Expected
Average Daily Production

42,000


1,250,000


1,090,000


73,000


505,000

2022 Expected Average
Daily Production...............

42,600


1,224,000


1,085,000


72,600


500,000











(1)

For the purposes of this disclosure, condensate has been combined with Light and Medium Crude Oil as the associated revenues and certain costs of condensate are similar to Light and Medium Crude Oil.   Accordingly, NGLs in this disclosure exclude condensate.

CERTAIN DEFINITIONS:

1H

first half

2H

second half

bbl

barrel

bbls/day

barrels per day

bbl/mmcf

barrels per million cubic feet

bcf

billion cubic feet

bcfe

billion cubic feet equivalent

bpd or bbl/d

barrels per day

boe

barrel of oil equivalent

boepd or boe/d

barrel of oil equivalent per day

bopd or bbl/d

barrel of oil, condensate or liquids per day

DUC

drilled but uncompleted wells

EP

exploration and production

gj

gigajoule

gjs/d

gigajoules per day

mbbls

thousand barrels

mmbbls

million barrels

mboe

thousand barrels of oil equivalent

mboepd

thousand barrels of oil equivalent per day

mcf

thousand cubic feet

mcfpd or mcf/d

thousand cubic feet per day

mcfe

thousand cubic feet equivalent

mmboe

million barrels of oil equivalent

mmbtu

million British thermal units

mmbtu/d

million British thermal units per day

mmcf

million cubic feet

mmcfpd or mmcf/d

million cubic feet per day

MPa

megapascal

mstb

thousand stock tank barrels

natural gas

conventional natural gas and shale gas

NCIB

normal course issuer bid

NGL or NGLs

natural gas liquids

tcf

trillion cubic feet

ABOUT TOURMALINE OIL CORP.

Tourmaline is an investment grade Canadian senior crude oil and natural gas exploration and production company focused on providing strong and predictable long-term growth and a steady return to shareholders through an aggressive exploration, development, production and acquisition program in the Western Canadian Sedimentary Basin by building its extensive asset base in its three core exploration and production areas and exploiting and developing these areas to increase reserves, production and cash flows at an attractive return on invested capital.

SOURCE Tourmaline Oil Corp.

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Economics

JA Worldwide Inducts 2022 Laureates into the Global Business Hall of Fame

JA Worldwide Inducts 2022 Laureates into the Global Business Hall of Fame
PR Newswire
BOSTON, May 26, 2022

BOSTON , May 26, 2022 /PRNewswire/ — The Global Business Hall of Fame, presented by JA Worldwide, features entrepreneurs and business leader…

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JA Worldwide Inducts 2022 Laureates into the Global Business Hall of Fame

PR Newswire

BOSTON , May 26, 2022 /PRNewswire/ -- The Global Business Hall of Fame, presented by JA Worldwide, features entrepreneurs and business leaders spanning the last two centuries. From the inventor of blue jeans to the co-founder of one of the world's leading biotech companies, visitors to our digital showcase find inspiring influencers to kindle their entrepreneurial spirit.

About the Global Business Hall of Fame

The Global Business Hall of Fame is not only reflective of JA's global reach, the diversity of JA students in 115 countries, and a wide range of global industries, but also prioritizes nominees who are working toward the Global Goals for Sustainable Development (SDGs), reinforcing to young people that they have the power to be a force for global good.

In addition, nominees for new laureates are grouped into two categories:

  • Leader: An executive-level professional who inspires others, the Leader's contributions have advanced the landscape of business with a focus on improving lives. As a result, the Leader has led companies and initiatives toward the Global Goals and is a role model who exhibits social values, inclusivity, and a global point of view. The Leader is likely to have led ventures with a large scope of responsibility, resources, and talent.
  • Innovator: Under 40 years of age, entrepreneurial in spirit, and community focused, the Innovator is changing the landscape globally or has recently emerged on the global stage. The Innovator is an inspiration, full of energy, passionate about work, courageous, and a promoter of change and innovation on behalf of the global good.

Each of our new laureates joins a digital exhibit with immersive, aspirational content, redesigned this year—thanks to the support of Delta Air Lines—to look and feel like a hall-of -fame exhibition. The Global Business Hall of Fame inspires young people through laureate stories and achievements.

The Global Business Hall of Fame 2022 Laureates

We're pleased to announce our 2022 laureates:

  • Bethlehem Tilahun Alemu (Leader/Ethiopia): When Bethlehem saw skilled artisans in her community living with chronic unemployment, she built a company that would showcase their skills and provide well-paying, sustainable jobs. Today, she is founder and Executive Director of soleRebels, Africa's fastest-growing footwear company. She has approached her other startups—The Republic of Leather, Garden of Coffee, Made by Ethiopia, Selam Bank, GIZA digital, NoodFoods, and TeffTastic—with the same goal: provide employment and economic prosperity in her community, while dispelling the myth that Ethiopians and Africans don't know how to create their own prosperity.
  • Alisée De Tonnac (Innovator/Switzerland): Alisée is CEO and co-founder of Seedstars World, the largest global competition for startups in emerging and fast-growing startup ecosystems, which connects entrepreneurs with investors and grants. Alisée has managed competitions in more than 85 cities and has a physical presence in 15 strategic co-working hubs around the world. As a result, more than 40,000 entrepreneurs from emerging markets have taken part in Seedstars' events and programs, fundraising more than US$250 million and creating more than 2,500 jobs. After the outbreak of COVID-19, Alisée also launched #SeedstarsCares, an initiative that facilitates discussions and forums via webinars, podcasts, and videos about the pandemic and other important world issues.
  • Marcos Galperin (Leader/Argentina): As founder and CEO of Mercado Libre, the largest ecommerce and fintech ecosystem in Latin America, Marcos has empowered the Latin American entrepreneurial community by leveling the playing field between large companies, small businesses, and entrepreneurs. Under Marcos's leadership, Mercado Libre seeks to foster entrepreneurship through educational initiatives that encourage financial literacy and inclusion and support entrepreneurs whose projects contribute to environmental, social, and economic goals, which the company calls "triple impact entrepreneurs." Through Mercado Libre, Marcos has brought decent work and economic growth to 18 countries in the Americas, enabling more than one million families to make their livelihoods by operating in the platform.
  • Audrey Cheng (Innovator/Kenya): Audrey is co-founder, former CEO, and board member of Moringa School, a learning accelerator headquartered in Kenya that teaches skills to African youth that increase their employability potential and launch their careers. Moringa School provides digital education—including a technology bootcamp—that gives rising developers and data scientists the skills they need to enter the booming tech workforce. Today, the school also offers scholarships to low-income students and women in an effort to even the socioeconomic and gender imbalance in tech. As a natural outgrowth of the school, Audrey co-founded LendHer Capital, which funds Kenyan, female-led businesses.
  • The Global Business Hall of Fame nomination process is designed to engage diverse stakeholders from around the world and to ensure protocols are followed in the selection of laureates. To ensure fairness and transparency, the annual process involves checking performed by PwC, the Global Process Integrity Partner of the Global Business Hall of Fame. PwC oversees JA Worldwide's processes for entry evaluation, manages the committee selection of finalists, and provides a platform for the Voting Jury.

About JA Worldwide
As one of the world's largest and most-impactful youth-serving NGOs, JA Worldwide delivers hands on, immersive learning in work readiness, financial health, entrepreneurship, sustainability, STEM, economics, citizenship, ethics, and more. Reaching more than 12 million young people each year through nearly half a million teachers and business volunteers, JA Worldwide is one of few organizations with the scale, experience, and passion to build a brighter future for the next generation of innovators, entrepreneurs, and leaders. Visit us at jaworldwide.org.

Contact
Tere Stouffer
Chief Marketing Office
JA Worldwide
+1-212-641-0747
tere.stouffer@jaworldwide.org

View original content to download multimedia:https://www.prnewswire.com/news-releases/ja-worldwide-inducts-2022-laureates-into-the-global-business-hall-of-fame-301555546.html

SOURCE JA Worldwide

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Economics

How digital technology can help keep cities green and pleasant

We know cities need green spaces – but what should they look like and where should they go?

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Preechar Bowonkitwanchai / shutterstock

Parks, small woodlands and even simple patches of grass not only keep a city attractive, but also help people find a sense of bliss in an otherwise bustling urban environment. With new technologies, we can plan and monitor these urban “green spaces” better than ever before.

As several studies have highlighted, nature within urban settings plays a pivotal role in combating many of the global public health challenges commonly associated with urbanisation. This includes maladies such as depression and high blood pressure. A 2022 study showed that trees actually have the ability to improve urban air quality as leaves and pine needles capture pollutants from the air.

That cities do need green spaces is therefore not a particularly contentious issue. It is, however, an open question as to how much green space a city ought to have. Even here, science can provide some guidelines, as research points to at least 9 square metres of green space per individual, with an ideal value of 50 square metres per capita in a city (for comparison, an average UK car parking space takes up about 12 square metres).

A small park viewed from above
Small parks for all? Sahara Prince / shutterstock

Green landscaping

The big question is therefore what kind of green space do we want? A well-kept but human-made park? Or something more natural and unkempt, such as groves, meadows or field-like areas? As we discuss in our forthcoming book, Designing Smart and Resilient Cities for a Post-Pandemic World: Metropandemic Revolution, this is largely contingent on the geographic preconditions of the city in question. The World Health Organization (WHO) recommends a diversity of different kinds of green areas if possible, yet it is an inescapable fact that some cities are blessed with lush vegetation while others are not.

However, all is not lost for cities without much natural green area, as such environments can be constructed in urban settings that have previously been bereft of naturally growing trees and grass. This “green landscaping” can be undertaken even in areas that would otherwise seem unlikely. One prime example is the High Line in New York City, a 1.45 mile (2.33km) long elevated linear park built on an abandoned railway viaduct. Since it opened in stages about a decade ago, the High Line has become an exemplar of green landscape redesign that seeks to turn obsolete infrastructure into green, vibrant public spaces.

People walk through park between tall buildings
All aboard the High Line. Massimo Salesi / shutterstock

While it is known that greenery has positive effects on mankind at large, it is more difficult to prove the exact causal relationship in exactly how green areas affect our health. In this regard, digital technology can be an essential tool for urban planners to determine where green landscape redesign is best employed.

Smart technology

One concept that is seeing particularly rapid development is “smart urban forests”, which refers to using tree monitors, 3D-imagery and other internet of things-linked technologies to help manage the forest. This “internet of nature” could monitor soil health, measure air pollution or ensure urban forests are adequately hydrated.

Future technology could also enable the use of open data platforms and more public engagement. Planners could collect various perspectives from the general population using an app, for instance, while also using digital technology to map and boost urban biodiversity and to ensure that green areas are placed where they will achieve maximum efficiency.

One example of this is the Treepedia research initiative, which was launched in 2016 by Massachusetts-based MIT Senseable City Lab. Treepedia aspires to raise awareness of urban forests by the use of digital vision techniques based on Google Street View images.

Map of Turin showing street tree dots
Treepedia calculates how much tree canopy is visible at various points on google street view. Treepedia, CC BY-SA

Treepedia focuses on pedestrian street trees found in multiple cities around the world, as opposed to parks. The main reason is that pedestrians are more likely to see street trees without planning to, whereas most people in parks made an active choice to be there. Using an open-source library, Treepedia means the public can calculate the quantities of tree coverage for their own city or region.

If urban planners become more aware of the potential of digital technology, then urban green spaces should have a bright future. However, designing the optimal green space that we want for our cities may also call for a deeper future collaboration between urban planners and engineers.


Read more: Neighbourhood green space is in rapid decline, deepening both the climate and mental health crises


Anthony Larsson works for the Stockholm Chamber of Commerce.

Andreas Hatzigeorgiou is also CEO of the the Stockholm Chamber of Commerce, and sits on the board of the Stockholm Senseable Lab, which is a collaboration between MIT and the KTH Royal Institute of Technology.

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Economics

Demand for commercial properties soars nationwide amidst economic expansion and stock market volatility, according to RE/MAX® Canada Brokers

Demand for commercial properties soars nationwide amidst economic expansion and stock market volatility, according to RE/MAX® Canada Brokers
Canada NewsWire
TORONTO, May 26, 2022

Investors flock to ‘bricks and mortar’ as hedge against inflation in …

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Demand for commercial properties soars nationwide amidst economic expansion and stock market volatility, according to RE/MAX® Canada Brokers

Canada NewsWire

Investors flock to 'bricks and mortar' as hedge against inflation in Q1 2022

TORONTO, May 26, 2022 /CNW/ -- With North American stock markets dangerously close to correction, bricks and mortar properties continue to resonate with institutional and private investors, particularly those who are personally vested, across almost every commercial asset class in major Canadian centres, according to RE/MAX brokers.

The RE/MAX Canada 2022 Commercial Real Estate Report found demand for industrial, multi-unit residential – particularly purpose-built rentals – and farmland was unprecedented in the first quarter of 2022, with values hitting record levels, while retail and office are starting to show signs of growth in multiple markets. Highlights from the report, which examined 12 major Canadian centres from Metro Vancouver to St. John's, include the following:

  • 92 per cent of markets surveyed (11/12) reported extremely tight market conditions for industrial product in the first quarter of 2022. Newfoundland-Labrador was the only outlier.
  • 67 per cent of markets surveyed (8/12) found challenges leasing industrial space. Included in the mix were Vancouver, Edmonton, Calgary, Winnipeg, Ottawa, the Greater Toronto Area, Hamilton-Burlington-Niagara and London. Some realtors are recommending tenants start their search for new premises at least 18 months before their current leases come up for renegotiation.
  • While demand for overall office space in the core remains relatively soft in 92 per cent of markets (11/12) across the country, Metro Vancouver continues to buck the trend.
  • Suburban office space continues to prove exceptionally resilient in 67 per cent of markets surveyed (8/12). Those markets include Vancouver, Calgary, Saskatoon, Winnipeg, Hamilton-Burlington-Niagara, Ottawa, Halifax-Dartmouth and Newfoundland-Labrador.
  • Development land remained sought after (industrial/residential) in 67 per cent of markets surveyed (8/12) including Vancouver, Calgary, Regina, Saskatoon, Winnipeg, Ottawa, the Greater Toronto Area and Halifax-Dartmouth.
  • End users are encountering challenges in terms of expanding their businesses due to land constraints/shortages, with specific mentions of this noted in Vancouver, the Greater Toronto Area and Regina.
  • Retail is on the rebound in 75 per cent of major Canadian markets (9/12), with strong emphasis on prime locations in neighbourhood microcosms. The trend has been identified in Vancouver, Edmonton, Calgary, Saskatoon, Regina, Winnipeg, Hamilton-Burlington-Niagara, Toronto and Ottawa.

Download the full report with detailed regional market insights HERE.

"The overall strength of the Canadian economy continues to propel massive expansion in commercial markets across the country in 2022," says Christopher Alexander, President, RE/MAX Canada. "What began as heightened demand for industrial space to accommodate a growing ecommerce platform during the pandemic has blossomed into a full-blown distribution and logistics network that encompasses millions of square feet in markets across the country. Recent volatility in the stock markets has also prompted a shift to greater investment in the commercial segment as investors look to real estate as a hedge against inflation."

Given the current shortage of land/space, developers and end users looking to build, have become increasingly creative in 58 per cent of markets surveyed (7/12), including Metro Vancouver, Edmonton, Regina, Saskatoon, Winnipeg, London, and the Greater Toronto Area. The supply/demand crunch has proven the adage, 'necessity is the mother of ingenuity', as new solutions emerge in the marketplace. In Metro Vancouver, Oxford Properties introduced the first industrial multi-storey industrial/commercial space in 2019 and a second stratified multi-storey facility—Framework by Alliance Partners—is planned for False Creek Flats. The first building is nearing completion and leased to Amazon while the first and second phase of the False Creek development is sold out and a third phase is currently selling at $725 per square foot.

In the future, municipalities may also consider industrial land reserves, registered areas dedicated to industrial in municipalities that are experiencing land constraints, given overwhelming demand.

"Land development is pushing city boundaries in major centres and municipalities are scrambling to accommodate residential and industrial intensification," says Alexander. "At present the process is painfully slow in most centres, even where land is already serviced. Given the on-going likelihood of demand, policy that helps availability or fast-tracking of approvals would certainly be a boon to the market." 

The RE/MAX Canada 2022 Commercial Real Estate Report also identified a growing trend in infill land assembly that targets retail storefront/strip retail malls in mature areas for mixed-use developments by institutional and private investors. These new developments almost always have a residential housing component on top, often purpose-built rentals or condominiums, given the shortage and need for greater densification. Smaller investors and end users are largely shut out of this market and tenants are having difficulties securing long-term leases in these key areas. Canada Mortgage and Housing Corporation (CMHC) is offering an exceptionally attractive financing package for multi-unit, purpose-built residential construction, with a 50-year-amortization rate, low loan-to-value ratios, and favourable interest rates.

Institutional and private investors remain exceptionally active in the commercial market across the country, spurring demand for industrial/office/retail product on a large-scale basis. Extensive portfolios are a primary target, especially those containing 10 or more properties. Spillover from activity in major centres is also serving to bolster smaller, secondary markets, where affordable price points, in relative terms, prove attractive, especially as savvy investors anticipate future needs and potential, given urban sprawl, density, population growth, pricing and inventory trends. 

While retail is making a comeback in prime neighbourhoods, the return of foot traffic should have a positive impact on the market moving forward. Revitalization of older retail spaces and malls is underway to enhance the shopper experience and influence the return to in-person shopping. This, in turn, is attracting tenants. The sector is expected to continue to strengthen as markets move past former pandemic constraints and more favourable conditions emerge to support retail growth.

RE/MAX Canada has found that cannabis outlets are largely over-represented in most major Canadian centres. As the industry amalgamates, there could be an influx of retail inventory returned to the market over the next 12 to 18 months.

Other trends noted in the commercial market by RE/MAX Brokers include novel ways to expand exposure and streamline the selling process. As inventory of farmland dwindles and price per acre has risen, realtors have turned to auctions with great success in Saskatchewan. Saskatoon, for example, which typically has about 300 listings for grain farms for sale at this time of the year, has seen available properties drop to under 90. Realtors have turned to auctions as a more effective way to increase exposure to a wider audience, generating offers from across the country, as well as the US. The trend is another sign of a heated marketplace where buyers are willing to compete for the right product in the right location in a transparent process.

"The soaring price of commodities has bolstered Western Canadian markets, with resource-rich provinces such as Saskatchewan, Alberta, and Manitoba experiencing unprecedented growth as industries emerge from their slumber," says Elton Ash, Executive Vice President, RE/MAX Canada. "Saskatchewan, in particular, is reinvigorated, with the economic engine just heating up in agriculture, mining, forestry, and potash."

Continued strength is forecast in commercial markets, supported by population growth and further economic expansion. According to the RBC Economics, Provincial Outlook published in March, GDP growth is expected to climb to 4.3 per cent in Canada, led by BC, Saskatchewan, and Alberta in 2022. An unquenchable demand for product in the industrial, multi-unit residential and farmland sectors will persist as intentions remain strong, despite a serious scarcity of inventory. Buyers, large and small, will continue to seek opportunity as investors increasingly favour tangible assets. Dollar volume is up across the country in almost every market as the principals of supply and demand impact values. Lease rates are also edging upward. With the pandemic fading quickly from memory, the return to the workplace – either full-time or in a blended/hybrid format – is expected to spark the next wave of growth, revitalizing downtown office buildings, and breathing new life into the core.

About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC and RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children's Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.

Contributing RE/MAX Brokers and Agents:

Metro Vancouver

Saskatoon

Greater Toronto Area

Steve Da Cruz

Brent Haas

Michael Davidson

RE/MAX Commercial Advantage

RE/MAX Bridge City Realty

RE/MAX Realtron

604.889.9293

306.641.6929

Realty Inc.



416.831.7108




Edmonton

Winnipeg


Scott Hughes

Mark Theissen

Ottawa

RE/MAX Commercial Capital

RE/MAX Professionals

James Palmer

780.915.7895

204.794.5700

RE/MAX Hallmark



613.698.5356

Calgary

London


Darryl Terrio

Eavan Travers & Gary Robinson

Halifax-Dartmouth

RE/MAX Complete Realty

RE/MAX Advantage

Craig Snow

403.930.8555

519.649.6000

RE/MAX Nova



902-499-7886




Regina

Hamilton-Burlington-Niagara


Mack Macdonald

Conrad Zurini

Newfoundland & Labrador

RE/MAX Crown Real Estate

RE/MAX Escarpment

Jim Burton

306.539.6806

905.573.1188

RE/MAX Infinity



709.682.8663

Forward looking statements
This report includes "forward-looking statements" within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project," and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company's results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company's business, the Company's ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company's ability to attract and retain quality franchisees, (6) the Company's franchisees' ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company's ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company's ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company's website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

SOURCE RE/MAX Canada

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