Page 14 - Southport Value Proposition - Feb 2023 Update

Residential Development

Southport currently has 201 residential housing units in the rental portfolio. 188 of the units were existing
rental units (former military quarters) and the remaining units consist of one condo purchased by Southport
and 12 newly constructed rental units in Southport’s newest residential development area, Centennaire South.

Southport implemented a residential upgrade program in 2014. The program was designed as a long-term
approach to upgrade the 188 existing residential units with the goal of increasing asset values while addressing
life cycle upgrades and aligning our rent rates with current market value.

Since 2014, 140 units have been upgraded and are all rented at their new respective lease rates. The program will
continue with the upgrades to the remaining 48 units over the next 3 years.

Centennaire South was a new development created to address a need for diversity in Southport’s rental housing
portfolio and utilize 47 previously vacant lots. Since 2018, 2 duplexes (4 rental units) have been constructed each
year and have been successfully leased prior to construction completion.
Centennaire South units have an upscale design with luxury finishes not available in Southport’s original rental
units. The plan to develop the remaining lots will be finalized in 2022-23 and construction of four rental units per
year is anticipated until all the lots have been developed.
Southport is currently undergoing a residential furnace upgrade program as a part of its Climate Smart initiatives,
converting all gas furnaces to electric. The program will complete a life-cycle replacement of 188 aging furnaces
with new electric furnaces. Converting from gas furnaces to electric furnaces provides many advantages to
Southport including:
Reduction in carbon footprint

Reduction in maintenance costs

Lower upfront installation costs

Other significant initiatives over the next five years include the removal of approximately 80 dead or dangerous
trees and stumps, planting of 120 new trees appropriate in size and location, and paving/reconstruction at the
west end of Yellow Quill Drive to correct road elevations and line up with new builds. The next 8 years will see
Yellow Quill Drive lots being developed starting at the east end, moving west and finishing out with single family
style units.