February 1st, 2009
Greetings IGW REIT Member-Partners,
I am pleased to announce that, despite the downturn in world markets, the unit value for League's IGW REIT increased in the past quarter by .001 cents to a new value of $1.117 per unit.
The total annual return for the preceding 12 months is 14.04%. The annualized return since February 01, 2007 is 15.74%, which includes the cash distributions plus an 11.7% increase in the unit value since inception.
While a few properties decreased in value, others – thanks to the efforts of our redevelopment and leasing personnel – increased enough to offset these local market conditions. Thus, the diversity of properties in the REIT pool, as well as our inter-dependent compensation structure, have shown their merit, and we are still on target to achieve our goals.
As you will learn in detail in my next "State of the Units" report, League's renovation and leasing teams continue their work at many of the IGW REIT's properties. We are confident that their efforts will continue to offset the individual retreats in the value of some properties until the markets strengthen once again. Of course, this is impossible to predict with absolute certainty – especially in a market where "flat is the new up".
This, however, is what makes this quarter's revaluation announcement particularly worthy of celebration. We at League are extremely proud of our teams and wish to acknowledge their hard work and dedication. Where others would be tempted to throw up their hands and blame the markets, they have redoubled their efforts to help us reach the targets we set while times were still good. If you wish to join me in thanking them, you may do so at this address: team@league.ca. To them, your praise is just as valuable as their paycheque.
Turning to the future...
As always, I must remind you: past results are not an indicator of future results. That said, however, I believe that League's compensation structure stands apart in times such as these. Because our success – and remuneration – is inextricably tied to yours, we are especially motivated to "work through the pain" even harder at these times.
When the entire pool is reviewed by third-party appraisers in May, we will find out precisely where we stand and make unit value adjustments and tactical course-corrections to ride out the conditions that then prevail. We intend to position the IGW REIT to capitalize on corrections in property values when the time-to-buy returns.
In the meantime, we will continue to work on your wealth, so that you may continue to work on your dreams.
Best regards,
Emanuel.
Emanuel F. Arruda, Founding Partner
League Assets Corp.
Learn, Earn, Live, Give.™
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