Land has long been seen as a sound investment, and there’s opportunity to be had in Canada’s farmland — as global food demand increases and land values appreciate, Avenue Living Agricultural Land Trust takes an innovative approach to land, farming and capital stewardship.
Assets Under Management
Acres Owned
Square Miles
Avenue Living Agricultural Land Trust is a leveraged, mutual fund trust that invests in Canada’s farmland, leasing it to farm operators for cash rent. This model allows farmers to focus on what they do best — farming and producing a global food supply — rather than deal with the intense capital requirements required for land ownership. The Agricultural Land Trust’s model is to achieve returns through rental revenue, capital appreciation and land improvements.
Experts predict the world population will grow to nine billion by 2050, which means the demand for food will also grow. These increased food demands will in turn require an increase in arable land. Canada is one of the world’s largest producers and exporters of agricultural product, and our arable farmland — traditionally undervalued in comparison to other markets — has seen an appreciation in value that’s poised to continue. For investors focused on future growth, Canada’s farmland is brimming with opportunity.
The Agricultural Land Trust evaluates farmland by comparing acquisition costs to the quantum of potential rental income. Saskatchewan land, in particular, has appreciated significantly in the past decade, and is predicted to continue gaining value for years to come. According to Statistics Canada, Canadian farmland has appreciated 8.15% per year between 2008 and 2018, while land in Saskatchewan has appreciated 12.12% during that same period. In spite of growth, land in Saskatchewan remains some of the most affordable, having soil quality similar to that of the other prairie provinces.
The Agricultural Land Trust leases acquired land to local farm operators for cash rent. There is a natural alignment between the Trust and farmers: we work with farmers to identify land improvement and reclamation projects, which not only increases farmable acres but also improves farming efficiencies and ensures the land continues to be productive for future generations. These efforts generate value over time for both the farmers and the Trust, especially as the demand for agricultural products grows.
Investment in Canada’s farmland is a capital appreciation strategy. What makes us stand out from the competitors in our industry is the use of leverage. This results in the investor being exposed to the appreciation of more acres for an invested dollar than in a non-leveraged structure.
Product Type
Open-end Mutual Fund Trust – Sunset Date Dec 31, 2023
Prospectus Exemptions
Offering Memorandum (all provinces except Quebec) and Accredited (all provinces)
Maximum Offering
$30 million
Inception Date
December 2, 2016
Maturity Date
December 31, 2023 (Manager option to extend 1 year)
Fund AUM
$59 million
Current NAV
$13.47 (Calculated quarterly)
Sponsor Investment
$10 million commitment from founders and their family, friends and business associates
Minimum Investment
$100,000
Closing Dates
Second Thursday of each month
Target Net Return
12% targeted return per annum
Waterfall
Return of capital • 8% Preferred Return to LP • Remainder split between LP and GP
Management Fees
1.0%
Acquisition Fees
2.5%
ITD MER
1.99%
Investor Restrictions
Subscribers must be Canadian citizens or permanent residents of Canada
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