Strategies
Platform highlights
Fengate remains disciplined in its active management of the commercial portfolio, resulting in high tenant retention rates, prudent cost management and continued exploration and implementation of value-add opportunities. Portfolio efficiencies are amplified through economies of scale, as well as geographic proximity. These synergies position the platform for long-term value creation and expansion as economic conditions continue to stabilize.
Market trends
Commercial sectors continued to stabilize in the first half of 2026. Industrial rents levelled off after several quarters of decline, with availability steady at 5%. In the suburban Oakville office sector, availability compressed 130 basis points quarter-over-quarter as return-to-office momentum continued. Retail fundamentals also remained strong, supported by limited recent and planned supply; Hudson’s Bay closures have had minimal impact on suburban strip centres, where investment and leasing demand remain strong.
With industrial and office supply pipelines tapering, the outlook remains positive for absorption and rent stabilization, and Fengate’s portfolio is well positioned to benefit from the flight to quality and sustained demand.
Achievements
Asset repositioning
Secured net new revolving credit facility to promote flexibility in asset repositioning strategies.
Industrial award
Received the Co-Star Impact Award for Industrial Development of the Year for a best-in-class 418,000 square-foot logistics campus located at Highway 50 and Langstaff Road.
Occupancy increased
Increased retail and flex occupancy by 140 basis points, and 260 basis points, respectively, year-over-year to 100% occupied.
Occupancy
Portfolio (square feet)
Net forecasted return
Same asset NOI growth1
Figures as of December 2025
(1) Excludes vacant 2351 Upper Middle Rd
Strategic initiatives
NAV and liquidity management
monitor NAV growth, balance leverage opportunities, and manage real asset allocations on an ongoing basis.
Leasing activity
continued focus on tenant retention and enhanced absorption across the portfolio, leveraging marketing and sales support across Fengate’s platform, as well as through third-party partnerships.
Pipeline execution
execution of Fengate’s industrial development pipeline remains on track, with an anticipated 6.4 million square feet of new product by 2030.
Market rent resetting
focus on bringing industrial portfolio rents up to market levels by engaging in early lease renewal discussions and prioritizing existing tenants looking to expand within the portfolio.
Asset repositioning strategies
such as site intensification and build out to enhance portfolio performance are underway, with the commercial team reviewing property-level business plans to identify further value add opportunities.