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CapitalDirectIIncomeTrustCAPITAL DIRECT I INCOME TRUST:
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- Historic Complete Portfolio Available Online
TFSA
RESP,RRSP
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Eligible*Annual return is based on 2018 income produced by Class A Units of the Trust.
**Ten - Year Historical Return as of December 31, 2018, is based on the income produced by the Class A Units of the Trust after any voluntary
reduction in Management fees or Income Participation.
Past performance is not an indication of future returns. All subscriptions for the purchase of units are made pursuant to available exemptions.
Investors should read the offering memorandum, especially the risk factors relating to the securities offered, before making an investment decision.
Capital Direct I Income Trust 305-555 W. 8th Avenue, Vancouver, BC, V5Z 1C6.
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http://www.incometrustone.comTRILLIUMHEALTH
PARTNERSFOUNDATIONCAROLINERISEBOROTrillium Health Partners
Foundation is pleased to
welcome Caroline Riseboro as
president and CEO, effective
February 24, 2020.
Caroline is internationally
recognized as one of the
most influential leaders in the
charitable sector today.
She has a 20-year track
record of transformative
success at top-tier non-profit
organizations, most recently
as president and CEO of Plan
International Canada. There,
her visionary leadership grew
the organization into one of
the largest charities in the
country.
Her many honours include
being recognized as one of
WXN’s Top 100 Most Powerful
Women in both 2017 and 2018,
and named as Canada’s Most
Admired CEO in the broader
public sector in 2019 by
Waterstone Human Capital.
In her new role, Caroline looks
forward to deepening the
community’s engagement
with Trillium Health Partners,
Canada’s largest community
academic hospital, to advance
its bold mission to create a
new kind of health care for a
healthier community.trilliumgiving.caB2| REPORTONBUSINESS OTHEGLOBEANDMAIL | SATURDAY,FEBRUARY22,2020
Telus Corp.’sretirement fund is
finalizing a deal to take full own-
ership of several buildings it co-
owns across Canada with Calgary-
based Strategic Group as a way to
recover unpaid loans and extract
itself from Strategic’s insolvency
in Alberta.
The transaction, which re-
quires court approval, is aimed at
repaying creditors and prevent-
ing more legal action stemming
from the receivership of Strate-
gic’s operations in Alberta, where
it has struggled with rising vacan-
cies as the economy has suffered.
Under the proposal, Telus Pen-
sions Master Trust (TPMT) would
acquire Strategic’s stakes in a
shopping centre in British Co-
lumbia, apartments in Edmonton
and several rental properties in
Atlantic Canada, none of which
were included in the receivership.
That package includes 45 proper-
ties in all, according to court doc-
uments filed this week.
Telus will also take control of
Strategic’s interests in properties
that are part of the receivership
and co-owned by Telus and Stra-
tegic. No dollar value has been
provided.
A total of 56 buildings are un-
der receivership, and TPMT was
Strategic’s partner in 25 of them.
Specific terms of the deal are be-
ing kept confidential.
The insolvency case began late
last year when the company’s
founder, property developer Riaz
Mamdani, sought to restructure
the Alberta assets under creditor
protection. Instead, a judge sided
with creditors and placed the as-
sets under the control of a receiv-
er. All told, creditors are owed
$708.5-million.
Telus has substantial exposure
to Strategic, which has dealt with
commercial tenants either shut-
ting down or moving to other lo-
cations as the energy industry has
slogged through five years of
downturn. Oil patch woes have
had a ripple effect, as oil and gas
producers as well as businesses
that support them have cut jobs.
In total, TPMT co-owns 95
properties with Strategic as part
of the partnership that began in- Its ownership stakes cur-
rently range from 6 per cent to 65
per cent. Telus has also lent a total
of $123.8-million to Strategic, in-
cluding about $44-million on the
buildings in the receivership case.
Mr. Mamdani said in an affida-
vit filed in court that all the lend-
ers have agreed to support the
transaction, or are expected to do
so. He described the deal as “an
omnibus settlement of issues be-
tween Strategic and TPMT.”
“This settlement will benefit
those parties as well as all of their
respective stakeholders as it will
avoid significant litigation which
may otherwise occur amongst
the various Strategic Group and
TPMT co-owners and other cred-
itors and enforcement actions by
the numerous mortgage lenders
on the co-owned properties,” Mr.
Mamdani said.
In a statement to The Globe
and Mail, he said Strategic would
keep managing its remaining
properties “with a strong focus on
the residential marketplace.”
Among the major lenders are
Canada ICI Capital Corp., Bank of
Montreal, Vancity Community
Investment Bank, ATB Financial,
Sun Life Assurance Co. and Indus-
trial Alliance.
TPMT declined to comment on
the proposal.
Under the deal, a shopping
centre in Duncan, B.C.; the 99-
unit Claridge apartment complex
in northeast Edmonton; and
rental units in Dartmouth, Hali-
fax, Sydney, Glace Bay and Kent-
ville, N.S., as well as in Saint John,
will be added to the receivership
list before TPMT acquires them
along with the other buildings
that it co-owns.
Meanwhile, the court has giv-
en the receiver expanded powers
to launch sale processes for the
properties. The trustee for many
of the assets, Alvarez & Marsal
Canada Inc., said in a report to the
court that it is finalizing a con-
tract with a broker-adviser to
seek buyers or investors, but it
didn’t specify the buildings.
Many of the assets are office
buildings outside Calgary’s pre-
mium downtown core as well as
residential and commercial prop-
erties in the suburbs.
TELUS(T)
CLOSE:$51.88,DOWN13¢teluspension
plantotake
controlof
co-owned
properties
JEFFREYJONES
MERGERSANDACQUISITIONS
REPORTERRoyal Bank of Canadaraised its profit by 11
per cent with a standout quarter from its
capital markets division and encouraging
signs of steadying loan losses, setting a
high bar to start the fiscal first-quarter
earnings season for the country’s large
banks.
In a quarter when analysts expected
strong trading revenue, RBC’s capital mar-
kets arm still surprised investors with
$882-million in profit, a 35-per-cent in-
crease from a year earlier. Trading revenue
surged to $458-million, and so did under-
writing revenue from RBC’s investment
bank, which reached $627-million. And
while chief financial officer Rod Bolger said
in an interview that “this might be the high
water mark” for capital markets, “we con-
tinue to expect to grow market share.”
RBC’s provisions for credit losses – the
money banks set aside to cover loans gone
bad – were lower than expected, falling to
$419-million, from $499-million in the
fourth quarter last year. Banks’ projected
loan losses spiked late last year, rebound-
ing from unusually low levels, putting
analysts on high alert for signs of deterio-
rating credit.
“In our view the more important take-
away was the stability in credit metrics,”
said Scotia Capital Inc. analyst Sumit Mal-
hotra, in a research note, “particularly giv-
en the shakier end to 2019 for the sector
from a credit quality perspective.”
Even so, RBC’s chief executive, Dave
McKay, warned that the bank still faces
“challenging headwinds” from low interest
rates and slowing global economic growth.
Just as trade tensions appear to be eas-
ing, across North America and between the
United States and China, the deadly out-
break of COVID-19 combined with rail
blockades set up by Wet’suwet’en hered-
itary chiefs to oppose the Coastal GasLink
natural gas pipeline on their traditional
territories have once again clouded the
outlook for banks.
“Certainly there’s a sigh of relief on [the
trade] front,” Mr. Bolger said. “But the
world being the world, there’s always
something new to worry about. So we just
have to make sure that we keep a balanced
view on things and keep our eye on what’s
going on.”
The bank’s chief risk officer, Graeme
Hepworth, said it’s “too soon to really have
a view as to the real impact” of the virus or
the blockades. “Certainly clients are being
impacted, but it will really depend on the
duration of this and whether it has any
staying power or not.”
For the three months that ended Jan. 31,
RBC earned $3.51-billion, or
$2.40 a share, compared with
$3.17-billion, or $2.15, a year
ago. On average, analysts ex-
pected earnings for each
share of $2.26, or adjusted
EPS of $2.30, according to da-
ta from Refinitiv.
The bank raised its quar-
terly dividend by 3 cents, or 3
per cent, to $1.08 a share.
RBC’s core retail banking
operations turned in a solid
performance, with profit up 7
per cent overall, and 5 per
cent in Canada, despite a
continuing squeeze on the profit margins
on loans. Some of that pressure came from
rapid growth in the size of the bank’s mort-
gage portfolio, which increased by nearly 9
per cent year over year, but typically pro-
duces slimmer margins.
RBC’s head of personal and commercialbanking, Neil McLaughlin, said the bank is
grabbing a larger share of mortgages as a
result of an “end-to-end review” that re-
vamped processes, underwriting and re-
sponse times.
“We’ve not at all gone down the risk
curve,” he said, a reference to not having to
chase less creditworthy borrowers.
Mortgage lending could get a further
boost from recently announced changes to
the way home loans are
stress tested, which will take
effect in April. But Mr.
McLaughlin predicted the re-
vised stress tests will have “a
minimal impact,” allowing
the average borrower to
spend $20,000 to $25,000
more on a home.
The strong results spurred
higher expenses, which rose
8 per cent to $6.38-billion,
mostly because of higher bo-
nuses and stock-based pay.
But year-over-year reve-
nue increased nearly 11 per
cent to $12.84-billion.
“We believe these results will be hard to
top,” said Steve Theriault, an analyst at
Eight Capital Corp.RBC(RY)
CLOSE:$109.21,UP$1.21rBCsurpassesinvestorexpectations
withstrongcapitalmarketearnings
RBCpresidentandCEODaveMcKayaddressesthebank’sannualgeneralmeeting
inTorontoinApril,2018.CHRISYOUNG/THECANADIANPRESSWhiletrading,underwriting
revenuesurged,CEOwarns
bankstillstrugglingwithlow
interestrates,sluggishgrowth
JAMESBRADSHAWBAN INGREPORTER
RBC’scoreretail
bankingoperations
turnedinasolid
performance,with
profitup7percent
overall,and5per
centinCanada,
despiteacontinuing
squeezeontheprofit
marginsonloans.