The Toronto Stock Exchange (TSX) is now awaiting the exit of two residential real estate investment trusts (REITs). Morgan Properties, one of the largest private multifamily housing owners in the United States, is set to acquire Dream Residential REIT and take it private, after the Ontario Superior Court recently granted approval for the deal.

The transaction, which will see the Canadian-headquartered REIT sell off a portfolio of U.S.-based assets, is scheduled to close no later than Dec. 19. REIT unit-holders and Class B unit-holders of DRR Holdings LLC will receive USD $10.80 (CAD $15.12) per unit — a premium on the current TSX unit price of USD $10.55.

Dream Residential REIT’s portfolio encompasses 3,300 dwelling units in 15 buildings, primarily located in the metro areas of Cincinnati, Oklahoma City and Dallas-Fort Worth. As of June 30, 2025 the portfolio was more than 95 per cent occupied and generating an average of USD $1,186 per apartment in monthly rents.

This follows after Ottawa-based CLV group, with backing from the global investment manager, GIC, struck a CAD $4-billion deal earlier this year to acquire InterRent REIT. It will see a Canadian portfolio of about 13,400 housing units in 123 buildings shift to private ownership, with InterRent REIT unit-holders receiving CAD $13.55 per unit. Court approval, under the Investment Canda Act, was granted in August, and the transaction is expected to close in late 2025 or early 2026.

Michael Brodie, managing director of real estate investment banking with BMO Capital Markets, recently noted that inconsistent investors have created the “weirdest environment” he has seen in 20 years. During a panel discussion at NAIOP’s 2025 annual conference in Toronto in September, he highlighted both the InterRent deal and this summer’s initial public offering (IPO) for GO Residential REIT, in which issuers raised USD $410 million (CAD $574 million) on the TSX toward luxury multifamily assets in New York City, to illustrate his case.

“We have a public market that trades, on an asset value, at about a 10 to 15 per cent discount to what we see in the private markets in Canada, “ Brodie observed. “You’ve got Canadian public capital supporting the IPO of a U.S. real estate portfolio at the same time you’ve got a depressed Canadian public market and global capital coming in and buying large Canadian companies at scale. It’s just a very weird dichotomy in the market.”