Choice Properties REIT

1. Interest Rate Risk: As with any property investment, Choice Properties REIT is susceptible to changes in interest rates. A rise in interest rates could increase their financing costs and negatively impact their profitability.

2. Tenant Risk: Choice Properties REIT is exposed to the risk that tenants may not make rental payments on time, or may not renew their leases when they expire. This could lead to a decrease in rental income and negatively affect their financial performance.

3. Economic Cycles: The property market is cyclical, meaning that it can be subject to economic fluctuations. If an economic downturn occurs, the value of Choice Properties REIT’s assets could decrease, leading to losses for investors.

4. Geographical Concentration: The majority of Choice Properties REIT’s assets are located in Canada, which leaves the portfolio exposed to local economic conditions. If conditions deteriorate in Canada, that could lead to a decrease in the value of Choice Properties REIT’s assets and a decrease in their financial performance.

5. Property Buying and Selling Risk: There is also a risk that Choice Properties REIT will not be able to find buyers quickly for their properties, or that they may overpay when buying a property. Both of these scenarios could lead to losses for investors.