Choice Properties
Setting the Benchmark for REIT Performance and ESG Leadership in Canada

As Canada’s largest Real Estate Investment Trust (REIT), Choice Properties stands apart not only in size but also in the strength of its strategy, the quality of its assets, its industry-leading balance sheet, and its commitment to building places where Canadians thrive.

With over 700 properties across the country and a portfolio spanning necessity-based retail, industrial, and mixed-use and residential asset classes, the company believes its future is firmly anchored in the long term. At its core, Choice Properties is more than a landlord—it’s a steward of community, a partner in sustainability, and an innovator in placemaking.

When we sat down with Rael Diamond, President and CEO, Erin Johnston, Chief Financial Officer, and Orit Sarfaty, Vice President of Sustainability and Placemaking, the conviction in their voices was evident. This is a company driven by purpose, not pressure. With a steady eye on the long game, Choice Properties doesn’t just navigate challenges—it rises above them. From delivering strong financial returns to leading on ESG, outperforming the industry isn’t the goal—it’s the standard.

Diamond, who has been at the helm of Choice Properties since 2019 after serving as COO, brings extensive leadership experience from across the Canadian real estate sector, including senior roles at CREIT and several Brookfield subsidiaries.

He combines financial acumen with strategic vision, guiding Choice Properties’ growth with a steady hand and deep industry insight. Johnston has worked across various businesses in the George Weston Group of Companies for the past 15 years, including Loblaw Companies Limited, bringing a wealth of expertise to multiple facets of the organization. She oversees the company’s financial strategy and capital management, and leads its finance, investor relations, accounting, and technology teams. Meanwhile, Sarfaty brings a unique lens to her role, blending strategic design with a deep focus on environmental and social impact.

Leading the Pack Through Market Volatility

The Canadian real estate market is navigating a complex landscape. While others in the sector may be grappling with high interest rates, inflation, and recession fears, Johnston shares that Choice Properties remains focused on growth—not repair.

“When people ask what keeps REIT leaders up at night, they expect to hear about interest rates or recession,” Johnston says. “For us, it's different. We have a very strong balance sheet and are in the right asset classes—essential retail, high-quality industrial, and transit-oriented rental residential. That foundation allows us to focus on long-term opportunities.”

Necessity-based retail, for example, has proven particularly resilient. With 65 percent of its retail income derived from Loblaw—Canada’s largest grocery and pharmacy retailer and Choice’s largest tenant—the REIT’s neighbourhood centers house essential services Canadians rely on daily: grocery stores, pharmacies, medical offices, and banks. These were the tenants that remained open and vital during the COVID-19 lockdowns.

Industrial properties—another key part of the portfolio—are well-located and generic by design, appealing to a wide range of tenants. While purpose-built rental residential currently represents a smaller share, it is a growing component, especially critical in a housing-constrained country like Canada.

Thanks to its strong financial position, the company was able to act counter-cyclically during the pandemic. “When others were pulling back, we were picking up industrial land, which we’re now developing,” Johnston notes.

“We’re not reacting to headlines—we’re guided by long-term fundamentals,” Diamond adds. “That’s what allows us to make confident, forward-looking decisions even in times of uncertainty.”

A 360-Degree Perspective on Real Estate

Choice Properties' long-term orientation is echoed by Sarfaty, who emphasizes that real estate success today demands a holistic approach—one that considers not just financial outcomes but social and environmental impacts as well.

“We operate with a 360-degree perspective,” Sarfaty says. “That means tenants, investors, and the communities are important stakeholders whose interests are at the table when we plan, develop or invest.”

This approach yields tangible benefits. One standout initiative is a Memorandum of Understanding signed with RBC, a tenant that shares Choice’s sustainability goals. By collaborating to share energy data and usage trends on leased spaces, both organizations have advanced their ESG agendas. The partnership benefits not only RBC’s nationwide branches but also Choice’s portfolio of 700+ properties.

But ESG at Choice goes well beyond energy efficiency and emissions targets. It includes creating welcoming, inclusive spaces where communities can gather, celebrate, and grow.

“Placemaking is critical to our strategy,” Sarfaty explains.

“We see our retail centers not just as places of commerce but as potential community hubs—spaces for connection, celebration, and belonging.”

In Bradford West Gwillimbury, for example, the company transformed a vacant lot at one of its retail centers into a shaded, landscaped patio with vibrant furniture. Residents began frequenting the space not only for shopping but also for the simple pleasure of spending time in a public setting. Feedback confirmed a community need: a space to be with others, even without a specific transaction.

Community Investment, Not Just Development

Perhaps the most poignant example of Choice Properties’ community-first mindset is the 985 Woodbine project in Toronto. Before beginning development of the site into a mixed-use residential building, the company activated an underused storefront by partnering with a local French-language theatre group. In exchange for reduced rent, the organization opened its doors to the public, hosting free art events and performances.

“We knew we had a long-term role to play in this community,” Sarfaty says. “Rather than leave a dead space, we filled it with culture and life. That’s how you invest in a community before the first shovel hits the ground.”

“We’re not chasing quick wins. Since our IPO, as of Q2 2025, we had delivered an annualized return of 9.2 percent outperforming our peers. that’s the result of a disciplined strategy.”

This ethos aligns with the company’s broader mission: to create enduring value through places where people thrive.

Strategic Discipline and Operational Excellence

Choice Properties doesn’t just talk about long-term vision—it delivers on it. Johnston outlined the company’s three goals: preservation of capital, stable and growing cash flows, and driving appreciation in net asset value (NAV) and distributions over time.

Part of that strategy involves active capital recycling. Since 2018, Choice has bought and sold approximately $5 billion in real estate, continuously optimizing the makeup of its portfolio. The company also maintains a robust development pipeline, with more than 18 million square feet in planning across residential, industrial, and retail assets.

Recent successes include delivering several million square feet of industrial space and multiple residential developments—all on time and on budget. Trust in the development and construction team runs deep and is backed by their ability to consistently deliver projects with strong return profiles that align with its value creation strategy.

Strategic Partnership with Loblaw

Integral to Choice Properties’ long-term value proposition is its strategic relationship with Loblaw. With 58 percent of gross rental revenue derived from the retailer, Choice gains deep insight into where and how Loblaw wants to grow.

This synergy allows the REIT to act quickly, intelligently, and seize opportunities that their competitors simply can’t see. In one case, Loblaw sought to establish a small-format discount store in Toronto. While most developers dismissed a site near Eglinton and Mount Pleasant as unviable due to high interest and construction costs, Choice, in sync with Loblaw, recognized the potential. Their transactions team acquired the vacant Shoppers Drug Mart location and converted it into a thriving No Frills—a win-win for both entities. It’s a compelling illustration of how real-time insight and a trusted partnership allow Choice to move decisively and unlock value where others hesitate.

“This type of coordination is only possible because of our partnership,” Johnston says.

Leading ESG from the Front

Choice Properties has set ambitious ESG targets, including a net-zero carbon emissions goal by 2050. Scaling that across hundreds of properties nationwide is no small task, but leadership is committed to delivering.

Sarfaty explains that their ESG strategy rests on two pillars: fighting climate change and strengthening communities to prosper. The company has already been recognized as an industry leader, earning the #1 ranking in its sector on Newsweek’s list of Canada’s Most Responsible Companies 2025 reinforcing its commitment to leadership and responsibility.

Internally, the REIT is also a leader in gender diversity. Over 50 percent of executives and board members are women, a number that rises to over 60 percent when considering the entire organization. For Sarfaty, diversity is more than a moral imperative—it’s a business one.

“Diversity drives innovation,” she says. “It helps us stay competitive, understand our communities, and reflect the values of today’s workforce.”

At the heart of this success is a workplace culture that celebrates people. Choice Properties takes immense pride in its inclusive, purpose-driven culture, which empowers employees to thrive, innovate, and grow. Recognitions such as one of Greater Toronto’s Top Employers by Great Place to Work in 2025 and Women Lead Here benchmark by The Globe and Mail in 2024, reflect a team that is not only high-performing but deeply aligned with the company’s values. This people-first approach is what drives enduring success—inside the organization and out in the communities they serve.

Vision for the Future

As the company looks ahead, its focus remains firmly on its three strategic asset classes. It believes that necessity-based retail, high-demand industrial, and purpose-built rental residential assets offer the stability, resiliency, and long-term growth potential needed to thrive in a dynamic market. With a best-in-class balance sheet and unmatched access to development land, Choice Properties is well-positioned to continue outperforming peers—even in uncertain times.

While many in the industry are preoccupied with weathering the storm, Choice is building for the next generation. Its belief in enduring value is not just a slogan; it’s an operating philosophy woven into every lease, every building, and every community partnership.

By staying true to its mission and executing with clarity, Choice Properties is proving that leadership in real estate isn’t about short-term gains. It’s about creating places where people thrive—and doing so with conviction, foresight, and heart.