Supply-chain constraints will not hamper Canadian automobile dealers’ ability to pay rents, says Automotive Properties REIT.

“Overall, the REIT believes that the fundamentals of the automotive dealership business remain solid, and that the industry is resilient and essential,” said APR in its third-quarter report.

North America’s automotive industry has been hit hard by supply-chain constraints in the past two years due to microchip, parts and electric-vehicle battery shortages, port bottlenecks, unavailability of containers and other factors. Pressures have eased somewhat, but APR noted that certain automobile models and brands’ supply remains constrained.

APR expects continued consolidation within the “highly fragmented” auto-dealership sector over the mid-to-long-term as increased industry sophistication and growing capital requirements encourage more economies of scale. The REIT owns 77 auto-dealership properties containing 2.9 million square feet of gross leasable area across Canada. The REIT

Dilawri Group, Canada’s largest automotive group, recently opened a new Audi dealership in Thornhill, Ont. The company plans to launch another one in Richmond, Hill, Ont., as part of a mixed-use property development..