The Globe and Mail reports in its Wednesday edition that one of Canada's largest owners of apartment buildings and multifamily properties is struggling to turn around two funds that bet on U.S. rental housing, with higher rates and an oversupply of new units eating into profits. The Globe's Tim Kiladze writes that Starlight Investments launched two funds that invested in U.S. rental properties during the COVID-19 pandemic with hopes that rising rents and low interest rates would keep sending property values soaring. By November, 2022, however, the two publicly traded funds, known as the Starlight U.S. Residential Fund and the Starlight U.S. Multi-Family (No. 2) Core Plus Fund, faced some significant headwinds, and both halted their distributions because higher interest rates had sent their mortgage costs soaring. The pain has only worsened since, and this week both funds reported negative funds from operations in 2023. Not only have elevated interest rates continued to weigh on profits, because the funds' mortgage costs have jumped, but there is now also a growing supply of multifamily properties in the markets in which the funds have invested, including cities such as Phoenix, Ariz., Orlando, Fla., and Austin, Tex.