When market conditions shift, it is preparation, experience and disciplined execution that distinguish those who struggle from those who succeed.

The past several years have been transformative for both Canadian and global real estate, as well as for the real estate investment platform at TD Asset Management Inc. (TDAM). Following a prolonged period of pricing adjustments across the market, optimism is beginning to re-emerge as the industry enters the early stages of a new real estate cycle. Participants at TDAM’s Real Estate & Mortgage Investor Day, held on October 1 and 2 in Montreal, gained insight into how a portfolio of high-quality assets, combined with the strength of an experienced team, enabled the platform to remain focused on its objectives, adapt to changing conditions and emerge stronger from a challenging environment.

Scale, Diversification, and Quality

The investment objectives of the real estate platform, which includes the TD Greystone Canadian and Global Real Estate Strategies, remain clear and consistent: to generate durable income today while preserving and compounding value over the long term.

Within the Canadian portfolio, scale provides significant advantages, including operational efficiency, enhanced access to investment opportunities, deep market relationships and resilience throughout market cycles. Diversification across property sectors and geographic regions further strengthens the portfolio by reducing exposure to downturns in any single market and providing access to a broad range of economic drivers.

While scale and diversification contribute to stability and resilience, quality remains the primary driver of long-term performance. Further, the platform’s build-to-core strategy and ongoing capital reinvestment initiatives are designed to create and enhance quality over time.

The Improvements

Over the past year, the platform has completed one of the most significant transformations in its history. This evolution included modernizing fund structures, expanding capital-raising channels, recapitalizing the multi-unit residential portfolio and continuing the growth of its global strategy.

Supported by shareholders, the modernization program was designed to deliver four key client outcomes: greater efficiency, stronger alignment of interests, enhanced liquidity management and broader access to capital. Among the most significant changes was the introduction of a unified structure, which simplifies portfolio construction, promotes greater consistency among investors, and reduces structural and transactional complexity. The establishment of the Limited Partner Advisory Committee (LPAC) further strengthened governance and investor engagement.

While each individual initiative is important, the collective impact is most meaningful. The result is a platform that is simpler, more transparent, more flexible and better aligned with client interests.

Global Real Estate Update

The Canadian strategy has long served as the foundation of the platform. However, the global strategy has now reached an important stage in its development. With assets under management exceeding C$1 billion¹ as at September 30, 2026, the strategy has achieved greater scale, relevance and access to a broader range of investment opportunities.

The portfolio has evolved from a predominantly indirect investment approach to one in which more than half of assets are invested directly across key markets, including London, Italy, Germany, the U.S. and Australia. This transition provides greater influence over asset selection, business planning, governance and execution.

A Portfolio Designed for Changing Markets

The decision to modernize during one of the most challenging periods of the real estate cycle is beginning to yield benefits as market conditions improve. Early indicators of a new cycle are emerging through increased transaction activity, improving confidence among buyers and sellers and more functional financing markets.

Nevertheless, the recovery is unlikely to be uniform across regions and property sectors. In this environment, the real estate team’s research capabilities, local market expertise, and disciplined asset selection process become increasingly important. The platform enters this next phase with enhanced liquidity, a broader capital base, clearly defined portfolio priorities and a structure designed to act selectively and strategically rather than reactively.

Occupancy as a Strategic Outcome

The office portfolio consists of high-quality, well-diversified assets. Occupancy levels have improved as a result of investments made during the pandemic. Rather than divesting assets during the downturn, the team maintained conviction in their long-term value and invested in enhancements that are now generating positive results. Upgrades to building systems, lobbies and common areas, combined with proactive engagement with prospective occupiers, have contributed meaningfully to improved occupancy.

The industrial portfolio has also stabilized following several years of rapid change. High-quality assets continue to generate consistent income, with performance supported by the ability to attract and retain high-calibre tenants.

Despite the widely publicized departure of certain large retailers, the retail portfolio remains resilient, supported by limited new supply and continued expansion among existing tenants. Ongoing efforts to increase customer traffic and enhance the attractiveness of properties demonstrate a commitment to asset quality that continues to be valued by retailers.

The multi-unit residential portfolio benefits from strong locations and larger unit formats that retain their appeal across market cycles. In addition, new developments within the portfolio are expected to represent the next phase of income growth.

Property Tour

The Real Estate Investor Day program also featured a panel discussion on commercial real estate with industry leaders, as well as a discussion on geopolitics and public policy. The event concluded with tours of several notable properties, including the Apple Store building on Sainte-Catherine Street West, La Parc on Rue Drummond and the Rue Crescent property, recognized for its iconic Leonard Cohen mural.