Artis REIT has launched a strategic review to boot its unit value as interest rates weigh heavily on it.

Winnipeg-based Artis said its board has formed a special committee that will examine why units are trading at a material discount to their intrinsic value.

The current interest-rate environment and shorter-duration debt exposure significantly impacted funds from operations and adjusted funds from operations on a per-unit basis in the second quarter, said Samir Manji, Artis’ president and CEO in a news release accompanying the REIT’s latest quarterly report.

The strategic review comes as Artis assets are performing well. In the second quarter of 2023, same property net return on investment increased 6.9% year-over-year. For the first six months of 2023, same property NOI climbed 7.7% from a year earlier.

Artis sold five Canadian retail properties, one U.S. land parcel and eight U.S. industrial assets for a combined C$279 million in the second quarter of 2023.