Investing in Equiton’s Apartment Fund: A Historically Stable Investment Amid Stock Market Volatility

Published On: May 6, 2025Categories: Insights

Staying Grounded in Shifting Markets

In today’s ever-changing financial landscape, investors are feeling the pressure of constant market swings. From ongoing tariff tensions and shifting trade policies to global crises and economic slowdowns, the stock market’s emotional rollercoaster can leave even the most seasoned investors feeling uncertain and uneasy. Volatility driven by political and economic uncertainty makes it more important than ever to consider strategies that prioritize stability and long-term growth.

Are you staying up late watching the market? Struggling to keep your sleep score in check as red arrows flash across your screen? You’re not alone. With daily fluctuations and no guarantee of stability, the stock market can feel like an unpredictable, nerve-wracking experience. What if there was another way to invest your money, a way that doesn’t keep you up at night, checking your portfolio every hour?

At Equiton, we offer private real estate investment opportunities that provide a tangible alternative that is largely insulated from the chaos of the public stock market. Our Apartment Fund* and other real estate offerings are backed by physical properties you can see, touch, and even drive past. These investments offer peace of mind and a track record of long-term stability, even when the stock market is under pressure.

*Equiton Residential Income Fund Trust

If your sleep score drops every time the stock market does, it’s time to invest in something steadier.

The Emotional Rollercoaster of the Stock Market

Stock market volatility has always been part of the game. But when markets become unstable, whether due to economic recessions, global events, or political instability, the emotional toll on investors can be significant. The daily highs and lows can leave you feeling exhausted, constantly wondering if today is the day your portfolio tanks.

For those who are invested in equities, this anxiety is all too real. In a market that’s affected by factors beyond your control, it’s easy to feel helpless. The emotional impact of market downturns can also lead to poor decision-making, such as panic selling or chasing after the next big “hot stock,” which often results in long-term losses.

The stock market’s volatility doesn’t just affect your portfolio, it can also impact your well-being. A recent survey found that 40% of Canadians experience anxiety or stress due to financial stress, with many reporting disrupted sleep patterns as a result.¹ A sleepless night here and there might be a minor inconvenience, but chronic stress related to your investments can have a significant effect on your mental and physical health.

Private Real Estate: A Calming Alternative to the Stock Market’s Emotional Storm

So, how can you break free from the emotional turmoil of the stock market? The answer lies in real estate, specifically, private real estate funds like Equiton’s Apartment Fund. Investing in tangible assets, such as apartment buildings, commercial real estate, and condo developments, allows you to escape the volatility of publicly traded stocks while enjoying long-term growth potential.

Tangible, Real Assets You Can See, Touch, and Drive Past

Unlike stocks, which represent ownership in a company, real estate represents ownership in a physical, tangible asset that has intrinsic value. You can see, touch, and even drive past the properties you invest in. This connection to something concrete offers a sense of security and reassurance that intangible financial assets simply cannot provide.

Equiton’s Apartment Fund is focused on acquiring and professionally managing a diversified portfolio of multi-residential properties across Canada. These properties have historically generated steady rental income, which is distributed to investors. Unlike publicly traded assets, private real estate investments are not subject to daily market fluctuations, offering potential stability during periods of broader market volatility.

Historically Steady, Long-Term Returns with Minimal Volatility

One of the key benefits historically associated with private real estate is its resilience. Unlike the stock market, which can experience sharp swings due to news events or investor sentiment, private real estate has often delivered more consistent, long-term returns. Equiton’s Apartment Fund, for example, has achieved 107 consecutive months of positive returns, over nine years of uninterrupted growth*, including during periods of economic uncertainty and market volatility.

*As at April 1, 2025. Past performance is not indicative of future returns.

Unlike stocks, private real estate investments aren’t traded on public markets, so they aren’t subject to the same daily price swings driven by headlines or investor sentiment. This insulation from market volatility offers a historically stable investment experience, one that appeals to investors looking for long-term performance. This consistent performance, supported by a clear and disciplined investment strategy, has helped our Apartment Fund deliver returns in several key ways:

Rental Income (Cash Flow)

Our in-house property management company, Equiton Living, collects monthly rent from residents across our portfolio of apartment buildings. After covering operational expenses and debt service, the remaining net income is distributed to investors, often on a monthly basis. This recurring income stream is a core component of the fund’s total return.

Appreciation of Property Values

Over time, the value of the apartment buildings can increase due to rising market demand, strategic improvements or renovations made by the Fund, and overall property performance. To ensure transparency and accuracy, our portfolio is appraised quarterly by independent third-party firms, providing investors with objective, up-to-date valuations of their investment.

Mortgage Paydown (Equity Buildup)

As residents’ rent helps pay down the fund’s mortgage obligations, the fund’s equity position improves. This gradual reduction in debt increases the underlying value of investors’ shares over time.

Operational Efficiency

The Fund may also generate returns through improved property management, cost control, and strategic upgrades. These efficiencies can boost net operating income, leading to higher distributions and increased property valuations.

When it comes to property improvements, we take a respectful, community-focused approach. Renovations are completed during natural resident turnover, such as when they need to relocate due to life events like moving to another province, getting married, or growing their family, ensuring minimal disruption to those who call our properties home. We’re committed to building welcoming communities where people are proud to live, enhancing both residents’ quality of life and long-term value for our investors.

Rest Easy with Equiton

If the wild swings of the stock market have been stealing your peace of mind, it might be time to invest in something that’s been historically consistent. Equiton’s Apartment Fund and other private real estate offerings provide just that. Backed by physical properties that have generated consistent returns, our investments allow you to grow your wealth without the stress of daily market fluctuations.

So, when markets fluctuate, you can take comfort in knowing your investment is backed by a historically resilient asset class. At Equiton, our focus is on providing access to private real estate, an approach that has offered stability in the past and may help bring greater confidence to your long-term financial planning; while helping you sleep at night.

Ready to invest in peace of mind?

Note: Past performance is not an indicator of future performance. Please, see the Offering Memorandum for more details.

Sources:

Ipsos. Four in 10 Canadians Have Trouble Sleeping at Night Due to Financial Stress. Conducted for RBC, 27 Apr. 2023, https://www.ipsos.com/en-ca/four-in-10-canadians-have-trouble-sleeping-night-due-financial-stress. Accessed 14 Apr. 2025.