BMO reveals Q1 earnings

Fergal McAlinden
other

The banking giant posted some noteworthy results in 2022’s first quarter

Bank of Montreal (BMO) has revealed that its net income rose by 45% to $2.93 billion in the first quarter of 2022, with the banking giant also posting a 46% increase in its reported earnings per share to $4.43.

Becoming the latest of Canada’s top six banks to release its first-quarter results in earnings season, BMO outstripped expectations for the seventh consecutive quarter, with analysts having predicted adjusted earnings of around $3.28 per share prior to the announcement.

Its statement showed strong performance in its Capital Markets division with reported net income of $705 million, up 47% over the same quarter last year.

Read next: National Bank releases Q1 2022 results

The bank said that was due to strong revenue performance and higher revenue in investment and Corporate Banking, helping make up for a drop in reported net income on the Wealth Management side from $336 million in 2021’s first quarter to $315 million this time around.

Darryl White, BMO’s chief executive officer, said its results had been boosted by effective risk management and credit quality, as well as investments in talent, technology and marketing.

“We continue to build on our operating momentum and delivered another quarter of very strong earnings, driven by our Canadian and US personal and commercial businesses, including accelerating commercial loan growth, and ongoing strength in BMO Capital Markets,” he commented.

The bank said its return on equity (ROI) had risen to 21.4%, up from 15.7% at the same time last year, while it also revealed recovery of the provision for credit losses of $99 million, compared with a provision for credit losses of $156 million.

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Massive waterfront parcel in Fraser Valley listed for sale

Frank O’Brien
Western Investor

Mission 86.7-acres on the Fraser River is open to bids as a ‘large-scale development site’ with OCP already in place for a variety of uses

 Mission waterfront site is preloaded and shovel ready. | Goodman Commercial.

Mission 86.7-acres on the Fraser River is open to bids as a ‘large-scale development site’ with OCP already in place for a variety of uses

An 86.7-acre riverfront parcel along the Fraser River in Mission has been listed for sale in what is considered one of the last large-scale waterfront development sites in the Fraser Valley.

The land, owned by the Braich family, stretches more than one kilometre along central Mission’s Fraser River shoreline.

The land is already designated for development under Mission’s official community plan (OCP) as part of its Waterfront Development Plan, according to listing agents Mark Goodman and Cynthia Jagger of Goodman Commercial, Vancouver.

‘No rezoning is required,” Goodman states in the offering.

Current zoning is industrial, but the OCP allows flexibility.

The offering, at 7011 Herman S. Braich Boulevard, Mission, comprises eight individual titles and provides a purchaser the opportunity to build-out a master-planned community with a wide range of building options.

The property is located just south of Lougheed Highway, with Highway 11 intersecting between the site and CP Rail running on the easterly border.

The site is surrounded by 296 acres that makes up the city’s Mission Waterfront Revitalization plan that has been in the works for years. In December 2021, Mission council approved a rough development plan for the waterfront.

City council is expected to finalize the waterfront plan for implementation this spring. The city’s vision is to create a vibrant waterfront river district with retail, restaurants, office, post-secondary institution, light industrial and residential uses, along with new public spaces along the waterfront. A pedestrian overpass, above the CP train tracks, will connect the site to the downtown.

About 780,000 cubic yards (600,00 cubic metres) of sand, which was dredged out of the Fraser River for Mission’s new main sewer line project, was used to preload the Braich land to flood-construction level.

There is no price listed for the lands. Goodman Commercial is accepting offers through a bid process.

 

© 2022 Western Investor

29-storey mixed-use development land located in 618 Sixth Street, New Westminster, B.C

Marcus & Millichap
Western Investor

High-density mixed-use development in Uptown could host 27 to 29 storeys of residential under current zoning.

Property type: Development land

Location: 618 Sixth Street, New Westminster, B.C

Size of land: 34,801 square feet

Land size in acres: 0.79 acres

Approved development options: 29-storey market condo + rental tower with commercial podium, or 27-storey rental only tower with commercial podium

Sale price: $27.5 million

Brokerage: Marcus & Millichap, Vancouver

Brokers: James Blair, Patrick McEvay and David Morris

 

© 2022 Western Investor

Taming the housing market: Real estate industry at odds with B.C. government

https://rem.ax/3M7t3y5
The Vancouver Sun

B.C. Real Estate Association is pushing back against province’s plan to allow homebuyers to back out of a sale within a “cooling period” of seven days.

 The B.C. real estate industry and provincial Finance Minister Selina Robinson are at odds over how to tame the blistering housing market. Photo by Mike Bell /PNG

The B.C. real estate industry and provincial Finance Minister Selina Robinson are at odds over how to tame the blistering housing market.

Last November, the province announced plans to implement a “cooling off period,” where a buyer has seven days to change their mind and back out of a sale after agreeing to buy a property.

On Monday, the B.C. Real Estate Association, which represents 24,000 real estate agents, pushed back against the plan.

“A ‘cooling off period’ is not the answer to alleviating the stresses consumers are currently facing in real estate transactions,” said BCREA CEO Darlene Hyde, citing analysis the group conducted of similar cooling off periods in other global jurisdictions. “While attractive at first blush, in a market characterized by low supply, such as ours, we believe that a cooling-off period will cause more problems than it solves.”

Instead, the association proposes a “pre-offer period,” where buyers would get five days to research and get information about a property once it’s listed, but before any offers are accepted.

In the case of buying a strata property, it proposes ensuring that documents such as strata bylaws, depreciation reports, information on contingency reserve funds and copies of insurance paperwork are available when listings are posted.

It’s all part of a 57-page white paper with 30 recommendations that the industry has for addressing current hot housing market conditions, which it described as being “untenable” with its bidding wars, supply scarcity and soaring prices.

The association said the B.C. government’s announcement in fall 2021 that it would implement a “cooling-off period” was done without broad consultation.

Hyde estimates the province is 25,000 listings short of what is needed for a balanced market and said the lack of supply may be further exacerbated by the 70,000 to 80,000 immigrants B.C. expects this year.

On Monday, Robinson responded by saying the real estate association, as a commission driven industry, has a vested interest in the market being hot, but the government’s work is to make sure people are protected.

“I’m aware of many points of view on this, including the association’s suggestion of a pre-offer period. Pre-offer periods are unlikely to address concerns about the risk to buyers, can encourage multiple offer situations and have an unknown effect on housing prices.”

Larry Anderson, president of the Fraser Valley Real Estate Board, pointed out that the record housing market is due to a combination of other factors, including rock-bottom interest rates, major shifts in lifestyle and work habits due to COVID-19 and a very low inventory.

 

Alex Goseltine, executive officer of the B.C. Northern Real Estate Board, cautioned against “one-size-fits-all” answers and said the “cooling off period” answer appeared to be based on current market conditions only in specific parts of the province.

One academic argued that instead of calming the market, the so-called flexibility provided by the proposed “cooling off period” could make the market even more prone to speculation.

Andrey Pavlov, who studies real estate finance at Simon Fraser University’s Beedie School of Business, likened it to being able to buy an airline ticket or book a hotel, knowing there is no penalty for walking away from the purchase for a few days when those bookings will be much more expensive.

He said a cooling off period as proposed by the government would allow buyers to purchase a home as a speculative financial asset, fix the price and then actually decide whether to buy it for real or not a few days later without needing to pay a percentage for that flexibility. He said the situation would favour experienced buyers with deep pockets who would find incentives in making lots of transactions in a way that first-time homebuyers couldn’t do as easily.

“We have all also heard the views of mortgage brokers, home inspectors and the experiences of prospective homebuyers about taking unfair risks to find a home in a heated market,” said Robinson. “Right now, the province’s real estate regulator is consulting about ways to bring in a cooling period that could be effective in B.C.”

 

© 2022 Vancouver Sun

Richmond industrial deal closes at $6.7 million per acre

CBRE Vancouver
Western Investor

Near nine-acre site near SkyTrain sells for $60.58 million in one of the city’s largest industrial transactions to date

Property type: Industrial

Location: 9800 Van Horne Way, Richmond

Property size: 112,019 square foot (warehouse)

Land size: 319,604 square feet

Land size in acres: 8.99 acres

Current zoning: IL (light industrial)

Potential: Industrial strata

Floor-space ratio: 1.0 FSR.

Sale price: $60.58 million

Date of sale: January 12, 2022 (closing date).

Brokerages: CBRE, Vancouver, with Avison Young, Vancouver.

Brokers: Terry Butt (associate), vice-presidents Bruce Richardson and Fraser Rowland, CBRE; Garth White, principal, Avison Young.

© 2022 Western Investor

Prince Rupert Port plans second container terminal

Western Investor Staff
Western Investor

The potential expansion would double the annual capacity at Canada’s third-largest port

Proposed new terminal at Port of Prince Rupert would double container capacity to four million twenty-foot equivalent units (TEUs) of annual capacity. | Prince Rupert Port Authority

The potential expansion would double the annual capacity at Canada’s third-largest port

The Prince Rupert Port Authority and DP World have started a two-year feasibility study on adding a second container terminal at what is already the third-largest container port in Canada.

The potential project would add up to two million twenty-foot equivalent units (TEUs) of annual capacity to the Port of Prince Rupert, significantly increasing Canadian trade capacity with Asia-Pacific markets.

The proposed terminal represents the continued advancement of the Prince Rupert Port Authority’s container terminal master plan done in 2019, which outlined the potential for an additional container terminal, south of the existing Fairview Terminal.  

“This agreement is a clear demonstration of our commitment and confidence in the viability of a second terminal at the Port of Prince Rupert,” said Maksim Mihic, CEO and general manager of DP World (Canada) Inc. “Our vision for this proposed project will ensure the Canadian trade and supply chain landscapes are future-proofed. The feasibility studies will employ a pragmatic approach, exploring the use of advanced technologies and ideas to position the new terminal as an industry leader within Canada and the world.”

 “As Canada’s third-largest Port, Prince Rupert is a proven driver of sustainable economic development in northern British Columbia and has been fortunate to earn the support of communities throughout the corridor,” said Shaun Stevenson, president and CEO of the Prince Rupert Port Authority in a statement. “A second container terminal will help consumers, exporters and industries across the country while continuing to contribute significant economic benefit for local communities, the broader region and our Indigenous partners.”

The project’s development will maximize the value of strategic Prince Rupert attributes such as the shortest marine link to key Asian markets, uncongested marine approaches and harbour, available industrial land with room to expand critical logistics, transloading and warehousing activities and North American access via Canadian National’s Class 1 northern rail line, Stevenson added.

Once the study period is complete, both partners will finalize a development plan that will be subject to regulatory review and authorization.“The partners are committed to incorporating Indigenous knowledge, feedback and economic interested into its planning and development process,” according to the Port Authority.

© 2022 Western Investor

RBC reveals Q1 results

Fergal McAlinden
other

The bank’s first-quarter earnings arrive amid continuing challenges posed by COVID-19

Royal Bank of Canada (RBC) has posted its financial results for 2022’s first quarter, revealing net income of $4.1 billion during that period – a 6% year-over-year increase.

The bank said that its net income had risen by $248 million in the quarter ending January 31 compared with the same time last year, driven by robust earnings in its Personal & Commercial Banking and Wealth Management sectors.

It noted that strong business volume growth and double-digit residential mortgage growth thanks to housing activity had helped spur higher net interest income in Canadian Banking.

Solid performances in those areas helped compensate for the fact that the bank’s Capital Markets earnings dropped from their record first-quarter numbers posted in 2021, with Insurance and Investor & Treasury Services also seeing a year-over-year decrease.

RBC said that its pre-provision, pre-tax earnings of $5.5 billion marked a 10% increase over last year, with that performance mainly due to higher average fee-based client assets, record investment banking revenue and higher net interest income.

Read next: RBC on how Canadian home sellers are faring

In comments accompanying the banking giant’s news release, president and chief executive officer Dave McKay said that its first-quarter performance in 2022 showed the “significant momentum” it was building despite uncertain times amidst the continuing COVID-19 pandemic.

“This is a testament to our scale, diversified business model, and strategic investments in technology, talent and innovation to create differentiated value for our clients and shareholders,” he said.

“While the Omicron variant has created headwinds to the global economic recovery over the past quarter, RBC employees remained unwavering in their commitment to supporting our clients and communities.”

McKay said that the bank’s priority would remain its “Purpose-led” approach to delivering products and services in a changing world, “while also accelerating our commitments to enable a sustainable and inclusive future.”

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Kelowna 0.39-acre retail site sold for $5 million

Royal LePage Kelowna
Western Investor

Prime corner development site on Harvey Avenue at Pandosy Street sold for full list price.

Type of property: Retail

Location: 430 Harvey Street (Hwy 97N), Kelowna, B.C.

Number of units:1 (restaurant)

Property size: 5,500 square feet

Land size: 16,998 square feet

Land size in acres: 0.39 acres

Zoning: C-7

Potential floor-space ratio: 9 FSR.

List price: $5 million

Sale price: $5 million

Date of sale: June 23, 2021 (Reported to Done Deals Feb. 24, 2022)

Brokerage: Royal LePage Kelowna, B.C.

Broker: Robert Mistal

© 2022 Western Investor

Bosa set to pour foundation for 43-storey tower on New West waterfront

Theresa McManus
Western Investor

Concrete pour planned for March

 An architect’s rendering of the Pier West development that’s under construction on New Westminster’s waterfront. Contributed/File

A second “monolithic concrete pour” is set to take place on New Westminster’s waterfront in March.

City council has approved an exemption to the construction noise bylaw so Bosa Development can do a monolithic concrete pour for the creation of the foundation for the east tower of the Pier West development. The exemption would allow Bosa Development to do a one-night overnight concrete pour at 660 Quayside Dr.

“Bosa Development has confirmed that the monolithic pour of 4,500 cubic metres for the east tower core needs to occur as one single continuous event estimated to take approximately 24 hours,” said a report to council. “Bosa’s engineers report that the core footing needs to be a monolithic slab as it will be located below the water table due to its close proximity to the south Fraser River.”

According to a report to council, splitting the pour over two days isn’t recommended because it would result in a seam within the slab and introduce concerns regarding future water seepage issues due to hydrostatic pressures.

“The seam also would introduce a risk of water migrating into the elevator shaft,” said the report. “Those risks are eliminated by conducting one continuous pour.”

Bosa is hoping to begin the pour on Friday, March 11 at 6 a.m., which is one hour earlier than what’s allowed under the city’s construction bylaws. The pour would continue until 9 a.m. on Saturday, March 12, which is 13 hours after the end of permitted hours.

The exemption to the city’s construction noise bylaw allows the work to be done from 6 a.m. on March 11 until 9 a.m. on March 12. If weather prevents the work from being done at that time, the exemption allows the work to be done during those same hours on one of the following two weekends (March 18/19 or March 25/26).

“During the pour, there will be four concrete pump trucks located around the foundation of the area of the work site,” said the report. “Concrete will be supplied by approximately 19 concrete supply trucks per hour for a total load of 429 trucks during the duration of the entire concrete pour.”

Pier West, which will be one of the tallest waterfront residential properties in the Lower Mainland, will include 43- and 53-storey highrises. It will also include a three-storey commercial building that includes childcare and retail spaces, about two acres of park and open space, an extension to Westminster Pier Park, and a public plaza and esplanade space.

In October 2021, a monolithic concrete pour took place for west tower, which is the taller Pier West building.

A staff report outlined some of the transportation impacts impacting the area during the upcoming concrete pour. These include:

* Temporary closure of the 600 and 700 blocks of Quayside Drive to motor vehicles so concrete trucks and get to and from the site.

* Because of the increased truck traffic on Quayside Drive, a traffic control person will direct pedestrian traffic and ask cyclists to dismount in this area.

* The #103 bus route won’t have any bus stop closures but it could experience some minor delays because of additional congestion on Quayside Drive and the McInnis Street overpass.

* Begbie Street, south of Front Street, will be closed to motor vehicle traffic for the duration of the pour, as this is where concrete trucks will enter the site.

* In the event that trains are travelling through the area near the Begbie Street crossing, concrete trucks will detour and access the site via Stewardson Way, the Third Avenue overpass and Quayside Drive. (This is because it is “critical” that the monolithic concrete pour is continuous.)

* A traffic control person will be stationed at the intersection of K de K Court and Quayside Drive to direct customers and deliveries going to River Market.

In addition to sending out notifications to nearby residents and businesses, Bosa Development will be posting updates at www.660QuaysideDr.com.

 

© 2022 Western Investor

Hudson’s Bay downtown Vancouver site eyed for office tower

Frank O’Brien
Western Investor

 Rezoning application will soon go to Vancouver city hall for ambitious redevelopment plan of century-old Granville Street location

Iconic Hudson’s Bay store: rezoning sought for one-million-square-foot office tower and “next level” shopping centre. | Rendering from Streetworks Development

Rezoning application will soon go to Vancouver city hall for ambitious redevelopment plan of century-old Granville Street location

Hudson’s Bay Company (HBC) has partnered with Toronto-based RioCan Real Estate Trust in a bid to transform the iconic Hudson’s Bay building in downtown Vancouver into a mixed-use development that includes one million square feet of office space.

Streetworks Development, the real estate development arm of HBC Properties and Investments, is leading the revitalization of the Bay Building as well as a variety of HBC’s other real estate assets across North America.

The century-old HBC outlet in Vancouver is located smack dab in the heart of the city’s downtown at 674 Granville Street at the corner of West Georgia Street.

“This project represents the next chapter in HBC’s retail history and its continued commitment to Vancouver,” said Richard Hamori, COO, Streetworks Development. “We intend to honour the heritage of our flagship building, as well as that of historic Granville Street, while expressing our confidence in the future of Vancouver’s downtown.”

The proposed makeover includes reconfiguring the existing retail space into about 350,000 square feet of “next level” shopping and will allow other retailers to lease space in the complex, according to Doug Adams, senior vice president of development, Streetworks.

A new 12-storey tower will be built above the existing six-floor store, providing one million square feet of new office space. With large floorplates of up to 61,000 square feet, the aim is to attract large tech sector tenants, Adams added.

A rooftop garden and internal multi-level atriums are also planned for use by tenants in the new building.

The reconfiguration includes improved access from the building to the Granville SkyTrain station, the Vancouver-City Centre Canada Line station, local bus routes, a new underground indoor bike hub able to store up to 1,500 bicycles, and new public pedestrian walkways that will provide covered access linking the Bay complex and shopping areas downtown.

The developers are expected to apply for Vancouver rezoning in the next week, a spokesman said February 23.

Processing the rezoning application could take up to a year, or more, and will include public engagement. Once approved, an application will be submitted for a development permit and subsequent building permit, with construction potentially starting as early as 2024.

 

 

© 2022 Western Investor