Skyline Predicts Optimistic 2026 for Canadian Alternatives
Investment management firm Skyline has released an optimistic 2026 outlook for private alternative investments in Canada. Citing improving operating conditions, the firm sees stability and growth potential for its real estate investment trusts (REITs) and renewable energy infrastructure fund. The positive forecast applies to its real estate, renewable energy, and development investment opportunities.
- The firm's positive outlook is underpinned by an anticipated easing of the Bank of Canada's policy rate and neutral inflation expectations, which are expected to create a more stable operating environment in 2026 compared to the turbulence of 2025. - Skyline's CFO, Wayne Byrd, has stated the company will prioritize operational performance and portfolio stability by maintaining conservative debt leverage ratios and avoiding sectors vulnerable to cyclical policy changes. - The Skyline Industrial REIT ended 2025 with a 97.7% occupancy rate across its 10 million square foot portfolio, with 85.3% of the portfolio weighted in the high-demand warehousing, distribution, and logistics sector. - As of the end of 2025, the Skyline Retail REIT's portfolio was valued at $1.7 billion with a 97.2% occupancy rate, and essential goods and services tenants accounted for 79.9% of its base rent. - The Skyline Clean Energy Fund saw its total revenue grow by 10.28% year-over-year in Q3 2025, with assets under management reaching approximately $400 million from a portfolio of 84 solar projects and two biogas facilities. - Co-Founder & CEO Jason Castellan emphasizes a strategy of acquiring existing properties at a discount to new construction costs and improving them, while also building new, more premium rental products to meet demand from tenants looking to move up. - The broader Canadian commercial real estate market is also showing renewed optimism for 2026, with private capital from REITs and family offices expected to fill funding gaps as traditional debt and equity channels tighten. - The Canadian Renewable Energy Association (CanREA) forecasts a period of steady growth for the renewables sector, expecting to add approximately 8 GW of new utility-scale wind, solar, and storage capacity to grids nationwide by 2029.
