Skyline Apartment REIT vs Public REIT

This post compares the return of a publicly traded REIT and a private REIT.  The Skyline Apartment REIT is the private REIT example.  Although it holds both apartments and commercial property, we can compare it to Canadian Apartment REIT (discussed in the earlier condo vs. REIT post).

Skyline has just increased their unit value significantly, so feel free to look back at earlier investment values as well.  The chart below shows the unit value and total return assuming the monthly distributions were reinvested in their DRIP plan.  Since January 2006, a single $10 unit would have grown to 1.89 units valued at $13.25 each - a January 2013 value of $25.01.  That's a 14% annual return.

Skyline Apartment REIT

The shares in Canadian Apartment Properties REIT increased from $16 to $24.40 over the same 7 year period - that is an annual return of 13.6%.  When you add in the total distributions of $7.58, Canadian Apartment Properties REIT comes out ahead, but as you can see below, its at the price of a lot of volatility.