Will We Continue to See Donut Cities?

All real estate indicators are positive, reports DBRS Morningstar, except for city center office and retail spaces. 

Yan Barcelo 29 September, 2021 | 1:50AM
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Building

Canadian real estate has been on a tear recently. But not all real estate. DBRS Morningstar recently released a report titled ‘Canada's Real Estate Financial Risk: A Post-Pandemic Rebound’ that noted that city center office space, and retail spaces continue to be laggards.

“From an overall credit risk perspective, we expect our rated portfolio of Canadian real estate issuers to rebound from the coronavirus pandemic. We anticipate year-over-year EBITDA growth to be 3.7% in 2021 and 5.8% in 2022, compared with a 7.6% decline in EBITDA in 2020 versus 2019… Our 2022 yearly growth expectation is the highest since 2019,” the report said. By the end of 2021, growth should have overtaken the levels of 2019 and erased all losses since the onset of the pandemic.

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About Author

Yan Barcelo  is a veteran financial and economic journalist with more than 30 years of experience, writing for many publications in Toronto and in Montreal, including CPA MagazineLes Affaires and Commerce.

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