To Our Investors and Partners,
As we report on our third quarter results for 2023, Crown’s operations continue to hold strong, despite the obvious macro and geopolitical uncertainties that prevail. Such challenging times underscore the critical importance of an efficient operating platform. The foundation of our success rests with our people. They are the frontline, serving our investors, clients and office communities, making strategic decisions, managing risks, identifying investments and driving innovation.
Crown’s 23-year track record of active, integrated property management, deep leasing market intelligence, and focus on sustainability, have proven essential for safeguarding and enhancing asset value regardless of market conditions. These are demonstrated by this quarter’s achievements:
- We continued to bolster our operating platform, welcoming a new EVP Operations, Anthony Kingsley.
- Leasing activity continues to align with our budgeted leasing across our fund portfolio. Year to date, we have completed over 375,000 sq. ft. of leasing transactions across our fund portfolio.
- Rental rates have continued to hold firm, with renewal rates that are at or above in-place rents for 96% of those leases.
- Touring activity has remained consistent throughout the year, with an average of 80 tours a quarter, 15% higher than in 2022.
- We continue to progress our dispositions and capital recycling program, with private investors being the most active purchasers of our assets. Year-to-date, we completed over $77 million of asset sales that are each <$25 million, achieving an average IRR in excess of 27% and EM in excess of 2.0 x.
- We demonstrated our leadership in ESG, expanding our disclosures to GRESB, the gold standard sustainability benchmark. We achieved 5-star ratings across the board and Crown’s Core Fund achieved a performance ranking of 1st in its peer group of non-listed Canadian office funds and 2nd in the Americas (read more here).
Our commitment remains steadfast in utilizing our unique operating platform to deliver on our promise of superior returns to investors and superior work environments for the businesses within our buildings.