Mark Kenney, whose name has been synonymous with Canadian Apartment Properties Real Estate Investment Trust (CAR-UN-T) for almost 30 years, is retiring from his positions as president and CEO on July 2. His successor will be another longtime industry executive, Brad Cutsey.

In an announcement Thursday night, made in conjunction with CAPREIT’s quarterly earnings release, the trust said Kenney will also resign from its board of directors on the same date, with Cutsey also taking on that role.

“I have greatly enjoyed the nearly 30 years I have spent with CAPREIT. I would like to thank our board and management for their collaboration and partnership throughout my time as CEO,” Kenney said in the announcement. “I know that with Brad, the REIT is in good hands and well-positioned for the future. 

“I continue to be invested in CAPREIT’s success and will remain engaged throughout the transition process, supporting Brad and our management team.”

Kenney steps aside after shepherding CAPREIT through a two-year transition period during which it wound down the operations of a subsidiary trust, European Residential REIT. That process just recently concluded after the majority of the ERES portfolio, based largely in Netherlands, had been sold. CAPREIT took the remaining assets of ERES private in a deal which valued the trust at $441 million. 

Kenney and CAPREIT

“On behalf of the board, I want to express our deep gratitude to Mark for his many years of dedicated service, leadership, and commitment to the organization,” Gina Parvaneh Cody, chair of the board, said in the announcement. “Mark has led the REIT through significant growth and change, and his impact will be lasting.

“We will miss his leadership, judgment, and steady hand very much, and we are sincerely thankful for everything he has given to CAPREIT.”

Kenney has spent the past seven-and-a-half years as CAPREIT’s CEO and president. He had previously spent 21 years as its chief operating officer. Earlier in his career, Kenney had been a district manager with Realstar Management, a senior property manager with Greenwin Property Management, and a property manager with Del Property Management / Tridel.

He has served as a board member with numerous industry associations, including REALPAC and FRPO. A highly visible leader, Kenney has also been a regular speaker and panellist at major industry functions, and is a frequently quoted source in many major media outlets.

Cutsey longtime industry executive

His successor, Cutsey, has spent 30 years within the commercial and multifamily real estate industry, including his most recent role as CEO of InterRent Real Estate Investment Trust (IIP-UN-T). He had previously served as InterRent’s president, group head of real estate investment banking and as an equity research analyst with prominent financial institutions.

Throughout his career, Cutsey has advised on billions of dollars of real estate transactions and equity and debt financings and has played roles in the formation of several publicly listed REITs. Cutsey is a Chartered Financial Analyst (CFA) and a graduate of the Bachelor of Business Administration (Finance concentration and Economics Major) program at Bishop’s University. 

The decision to appoint Cutsey has been unanimously approved by CAPREIT’s board.

“I’m excited to step into this role and lead a company recognized as Canada’s preeminent residential REIT,” Cutsey said in the announcement. “As the market continues to evolve, our focus will be on maintaining strong liquidity, executing disciplined portfolio management, and delivering a high-quality product for our residents. 

“We remain committed to driving stable, long-term cash flow growth through organic initiatives and the selective pursuit of strategic opportunities that create value for our investors.”

He will take the helm of Canada's largest publicly traded rental housing owner and operator. As at March 31, CAPREIT owns approximately 45,600 residential apartment suites and townhomes across Canada and, to a lesser extent, the Netherlands. The portfolio is valued at approximately $14.6 billion.

“We are delighted to welcome Brad as our next President and CEO. The Board very much looks forward to working with Brad to execute the REIT’s strategic vision, and this transition is being made with the entire senior leadership team remaining intact. We believe this continuity, combined with Brad’s experience and leadership style, positions the organization extremely well for the future,” Parvaneh Cody said.