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SKYLINE RETAIL REIT
Skyline Wealth Management Inc. (“Skyline Wealth”) is an Exempt Market Dealer registered in the provinces of
Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario,
Prince Edward Island, Quebec, and Saskatchewan. The information provided herein is for general information
purposes only and does not constitute an offer of securities.
Commissions, trailing commissions, management fees and expenses all may be associated with investments in
exempt market products. Please read the confidential offering documents before investing. The indicated rate
of return is the annualized return including changes in unit value and reinvestment of all distributions and
does not consider sales, redemption, distribution or optional charges or income taxes payable by any
unitholder that would have reduced returns. Exempt market products are not guaranteed, their values change
frequently, and past performance may not be repeated. There is no active market through which the
securities may be sold, and redemption requests may be subject to monthly redemption limits. The payment
of distributions is not guaranteed and may fluctuate. The payment of distributions should not be confused
with an exempt market product’s performance. Distributions paid as a result of capital gains realized by an
exempt market product, and income and dividends earned are taxable in your hands in the year they are paid.
Your adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base
goes below zero, you will have to pay capital gains tax on the amount below zero. Prospective investors must
make an independent assessment of such matters in consultation with their own professional advisors.
Any information and opinions provided herein is current as at the date of publication and Skyline Wealth does
not undertake to advise the reader of any changes. Third party information contained herein has been
collected from sources believed to be reliable. However, Skyline Wealth has not taken any steps to verify the
information and does not guarantee its accuracy or completeness.
This communication is not intended to be directed to jurisdictions outside the provinces of registration.
Some of the investment products offered by Skyline Wealth are from related issuers. A full list of issuers
related to Skyline Wealth and details of the relationship between them is available upon request. Information
provided herein is current as at the date of publication and Skyline Wealth does not undertake to advise the
reader of any changes.
DISCLAIMER
Skyline Retail Real Estate Investment Trust (REIT) is an income-producing opportunity to
invest in a 100% Canadian diversified portfolio of retail properties with a focus on trusted
national brands with long-term leases.
The objectives of Skyline Retail REIT are to provide unitholders with stable and growing cash
distributions, payable monthly and, to the extent reasonably possible, tax-deferred, from
investments in a diversified portfolio of income-producing retail properties located in Canada.
The long-term goal is to maximize the unit value through the ongoing management of Skyline
Retail REIT’s assets, through the future acquisition, repositioning and disposition of properties.
Skyline Retail REIT focuses on owning and acquiring income producing community -based
retail properties that are known as everyday essential needs and services; the robust tenant mix
includes name-brand grocery, pharmacy, food service, banking, and beer & liquor stores.
Skyline Retail REIT seeks properties that act as centralized consumer hubs in secondary and
tertiary markets across Canada, with high visibility, access, and traffic within their respective
communities. Skyline Retail REIT evaluates properties based on the tenants’ underlying
strength, brand recognition, and the resilience of products and services offered amid a rapidly
changing retail landscape.
With locations in dozens of Canadian communities, Skyline Retail REIT draws on a well-
diversified pool of tenants, which results in historical stability and consistent growth in cash
distributions, paid to investors monthly. Skyline Retail REIT has also provided historical tax-
efficient growth for investors, with 100% of returns classified as return of capital (deferred
capital gains) since its inception in 2013.
ABOUT THE REIT
FOOTNOTES1. Unit value is determined by a Net Asset Value (NAV) model based on evaluations by Senior Management and the Skyline Retail REIT Board of Trustees. 2. The annualized return is based on a single unit initial investment in the Skyline Retail REIT inclusive of unit price changes and reinvested distributions. 3. Current Annual Yield is equal to the annual distribution per unit divided by the current unit value. 4. Funds From Operations (FFO) is a REIT measurement of cash generated from operating rental properties. It is essentially profit from operations, excluding depreciation used for tax purposes and excluding any gains or losses on dispositions. 5. A payout ratio indicates what percentage of a company’s FFO is being paid out as distributions. Generally, a lower payout ratio may indicate a more sustainable distribution and opportunity for future growth within the Trust. 6. Accredited Investors and Eligible Investors under the Offering Memorandum Exemption. Full definition at https://skylinewealth.ca/faq
Highlights
7.38% Current Annual Yield
80%-85% Funds From Operations
Payout Ratio Range
$50,000 Minimum Investment
RRSP, RRIF & TFSA Eligible
Eligible Investors
No Redemption Fees
3
4
5
6
ABOUT THE REIT
Annualized Return2
1 Year : 7.65%
3 Year : 10.61%
5 Year : 11.39%
Inception : 12.55%(October 8, 2013)
as at Dec. 31, 2020
Unit Value & Annual Distribution Per Unit as at Dec. 31 of each year
Unit Value 1 Annual Distribution per Unit (on original investment)
73.6%GROCERY /PHARMACY ANCHORED
PROPERTIES
110PROVINCES
5COMMUNITIES
66
*Unaudited figure
SQUARE FEET
4.6MMASSET VALUE
$1.1*+BOCCUPANCY
96%
ABOUT THE REIT as at Dec. 31, 2020
ABOUT THE REIT
100% Canadian You’re investing in 100% Canadian Retail Real Estate
Monthly Income Monthly distributions or Distribution Re-Investment Plan (DRIP) available
Capital Growth Potential Potential for investment value to increase over time
Registered Account Eligible (RRSP, TFSA, RRIF, etc.) Maximize your returns by investing through existing or new Registered accounts
Potential Tax Efficiency Skyline Retail REIT may be a tax-efficient investment choice
Geographic Portfolio Diversification Diversified portfolio of Canadian retail properties
$50,000 Minimum InvestmentMinimum of $50,000 required for initial investment
No Redemption Fees1
No surprise costs or fees upon redemption
1. A transaction fee may apply if your account is held by a third-party registered plan trustee or dealer.
Gordon DriedgerPresident,
Skyline Retail Asset Management Inc.
• Over 25 years of industry experience
• Prior to joining Skyline, Gord held leadership positions
at First Capital Realty Inc., Bank of Montreal,
Canadian Tire, and Sobeys
• Active member of leading industry organizations
John HutchinsonDirector of Leasing,
Skyline Commercial Management Inc.
• Nearly 20 years of industry experience
• Oversees leasing for over 4.5 million square feet of
retail real estate
Mike BonneveldVice President,
Skyline Asset Management Inc.
• Over 20 years of industry experience
• Overseen over $4 B in acquisitions and $800 MM
indispositions for Skyline
Maria DuckettVice President,
Skyline Commercial Management Inc.
• Nearly 15 years of industry experience
• Manages over 11 million square feet of retail and
light industrial space
WHO WE ARE
WHERE WE ARE
The Skyline Retail REIT portfolio is comprised of properties in secondary
and tertiary markets across Canada, focusing on everyday essential
businesses. These locations are primarily centrally and strategically located in
high-traffic areas allowing for greater visibility, customer accessibility and one
stop shopping.
Cobourg
Dryden
Elmira
Fergus
Georgina
Gravenhurst
Grimsby
Guelph
Amherstburg
Aurora
Barrie
Bayfield
Belle River
Belleville
Casselman
Chatham-Kent
Hamilton
Hanmer
Hanover
Huntsville
Kincardine
Kitchener
Listowel
London
Midland
Mount Forest
Napanee
New Tecumseh
North Bay
Orangeville
Ottawa
Owen Sound
Port Elgin
Quinte West
Saint Mary’s
Saugeen Shores
Sault Ste. Marie
Strathroy
Sudbury
Thunder Bay
Timmins
Trenton
Walkerton
Wallaceburg
Waterloo
Welland
Windsor
Wingham
Boisbriand
Gatineau
L’Ile-Perrot
Lachute
Longueuil
Montreal
Riviere-Rouge
Saguenay
Saint-Felix-de-Valois
Shawinigan
Trois Rivieres
Pointe-du-Lac
Saint-Joseph-de-Beauce
WHERE WE ARE
Kelowna
Sooke
Edmonton
Grand Prairie
Red Deer
Steinbach
Winnipeg
TOP TENANTS
TOP TENANTS BASED ON PERCENTAGE TOTAL BASE RENT as at Dec. 31, 2020
1.30%
1.60%
2.90%
3.50%
5.80%
6.10%
7.50%
9.00%
14.90%
ESSENTIAL GOODS AND SERVICES TOTAL BASE RENT as at Dec. 31, 2020
47%9.38%
4.93%
5.92%
4.75%
1. Pharmacy, Grocery & GeneralStores (Dollar Stores)
2. Fast Food/ Liquor
3. Fitness
4. Medical/ Personal Services
5. Banks
180%
Base rent
from essential goods and services tenants2
3
45
COVID-19RESPONSE
Business Continuity
Plan, already in place,
enacted; allowing
employees to smoothly
transition to work
from home.
Participation in CECRA
(Canadian Emergency
Commercial rent
Assistance) Program,
enabling our most
vulnerable tenants to
survive.
Individualized
considerations for
tenants who did not
qualify for CECRA.
Designated curb side
pick up areas,
new/extended patio
seating approved to
help tenants with their
business continuity. Extra cleaning
measures, readily
available sanitation
stations, partitions
erected between work
station, mandatory
masks in common areas.
82%
84%
86%
88%
90%
92%
94%
96%
98%
100%
Apr. 2020 01-May-20 Jun. 2020 Jul. 2020 Aug. 2020 Sept. 2020 Oct. 2020 Nov. 2020 Dec. 2020 Jan. 2021 Feb. 2021
85.70% 84.60% 87.90% 92.70% 95.90% 98.20% 98.80% 97.20% 99.60% 99.40% 99.10%
Cash Collected Rent Deferred
RENT COLLECTION FROM APRIL 2020 TO FEBRUARY 2021
COVID-19 RESPONSE - IN THIS TOGETHER ‘Thanks and as a tenant, I would like to say that Skyline
has been very agreeable and supportive of us as a tenant
and as such, we look forward to a continued long
relationship with you.’
– Marcello Salon
‘I just wanted to share that I really appreciated the extra
help [your Admin Team] has given me via email to apply
for the rent subsidy program. All [their] emails are kind
and patient. Very nice to see in these very hard times’
– Personally Fit
‘It's making all the difference in my business being able
to move forward.’
– Fabutan
‘THANK YOU! I truly appreciate the fact that you have
helped me out with this. And it HAS helped.’
– MacMillan Entertainment Group
‘Your support is much appreciated’
– Smile Corner Dental
COVID-19 RESPONSE - IN THIS TOGETHER
‘The support that you are providing to your tenants helps us
continue to live our dreams of entrepreneurship. I am just very
thankful. I know many landlords are not supportive and I am just
thanking my lucky stars to have your assistance. Just wanted to let
you know that you make a big difference in our world and I
appreciate the kindness and help that you have given my family. I
just wanted to take a moment to thank you and Skyline again for
stepping up and supporting your tenants during this difficult time. I
am honoured to rent from Skyline and I am thankful for your quick
response and action during these uncertain times.’
– Quantum Float & Salt Cave
COVID-19 RESPONSE - IN THIS TOGETHER
THE FUTURE OFGROCERY
Michael Medline,
President, Empire Company
June 23, 2020 - grocerybusiness.ca
‘Since the pandemic began, the grocery industry has been at the
forefront, rapidly adapting and implementing measures to ensure that
Canadians continue to have access to safe food.
Safety and one-stop shopping are trumping everything now. In the 2008
recession, we saw discount rise, but with this situation, people are
balancing their pocketbooks with their concerns for health and safety.
People will not shop at as many stores as they once did because they
will want to shop at the one store that offers everything they want from
grocery and where they feel safe.
Before the crisis, grocery ecommerce accounted for 1.5 to 2 per cent of
the market and is expected to reach 5 per cent in three years, but bricks
and mortar will provide the cash to Invest in ecommerce.’
THE FUTURE OF GROCERY
https://www.altusgroup.com/data/insights/snapshot-investment-trends-q3-2020/
“Essential retail has flourished.“
Gordon DriedgerPresident, Skyline Retail REIT
2020 ACQUISITIONS
Colin Johnston, President, ALTUSNovember 2020
“Throughout 2020, we have proceeded with incremental
acquisitions that continue to fit our investment strategy and fit
within our expected cash flow parameters and anticipated rent
collections for the immediate future.
We expect competition for the very best of grocery and drug
anchored retail strips to continue to be fierce. In these difficult
times, the quality and resilience of these assets is even more
evident than ever.”
City: Montreal, QC
Address: 12285-12421 Rodolphe-Forget [ Faubourg Des Prairies]
Purchase Price: $16,500,000
GLA: 67,311 sq. ft.
2020 ACQUISITIONS
Q1 2020 - Greater Montreal Portfolio
City: Longueuil, QC
Address: 2235-2261 Boulevard Roland-Therrien
Purchase Price: $ 12,400,000
GLA: 41,955 sq. ft.
2020 ACQUISITIONS
Q1 2020 - Greater Montreal Portfolio
City: Montreal, QC
Address: 1220, 1300-1400 Saint-Jean Baptiste [Place Point-Aux-Trembles]
Purchase Price: $19,500,000
GLA: 115,810 sq. ft.
2020 ACQUISITIONS
Q1 2020 - Greater Montreal Portfolio
City: Saint-Félix-de-Valois, QC
Address: 3080-3110 Henri-L.-Chevrette & 5371 Saint-Jean
Purchase Price: $14,865,000
GLA: 74,877 sq. ft.
2020 ACQUISITIONS
Q2 2020- Marche St-Felix-de-Valois
City: Terrebonne, QC
Address: 675-677 Boulevard Des Seigneurs [Centre Terrebonne]
Purchase Price: $6,925,000
GLA: 39,286 sq. ft.
2020 ACQUISITIONS
Q4 2020 - Terrebonne
City: Terrebonne, QC
Address: 5661-5671 Boulevard Laurier [Marché La Plaine]
Purchase Price: $10,075,000
GLA: 47,478 sq. ft.
2020 ACQUISITIONS
Q4 2020 - Terrebonne
2020 DEVELOPMENTS From a development perspective, and despite Covid-19 related
construction delays across the country, the REIT continues to push forward
on the planning approval on several opportunities throughout the portfolio.
Most notably, two quick-service restaurants pads and pharmacy in Ontario
assets.
The REIT recently completed two significant construction projects. The first,
approximately 6,000sqf of new build in Sooke, BC., which is fully leased and is
home to a Tim Hortons, an H&R Block, and additional retail. The second,
approximately 4,500sqf of new build in Hanmer, ON, which is home to RBC.
Progress has been good, as well, on incremental organic opportunities within
the portfolio. Skyline Retail REIT expect to break ground on the
redevelopment of vacant lands in Gravenhurst in late Q1-2021 as
entitlements are nearing completion for approximately 200 residential units,
a Marriot branded hotel, and additional retail.
Tim Hortons Sooke, BC
RBC Sudbury, ON
2020 DEVELOPMENTS
155 & 225 Edward St & 351-431 Talisman Dr, Gravenhurst, ON
Throughout the 2020 year, the Asset Manager continued to assess the REIT
and its value. As indicated by the International Financial Reporting Standards
(IFRS) valuation and third party appraisals, capitalization rates1 associated
with the REIT’s assets have been maintained, or slightly compressed. This has
been borne out, as well, in the select dispositions the REIT has completed
thus far in 2020 wherein assets were sold at premiums, in some cases
substantial premiums, to IFRS values even during the pandemic.
Most recently, the sale of 139 Victoria Avenue East, Brandon, MB, which was
identified in 2019 as a non-core asset that was appropriate for a strategic
disposition, and was sold at a premium to the property’s purchase price, as
well as its value established in January 2020. Funds surfaced from the
property’s sale will be used toward accretive property acquisitions to
potentially maximize value for unitholders.
1. The capitalization rate (also known as cap rate) is used in the world of commercial real estate to indicate the rate of
return that is expected to be generated on a real estate investment property. This measure is computed based on
the net income which the property is expected to generate and is calculated by dividing net operating income by property
asset value and is expressed as a percentage. It is used to estimate the investor's potential return on their investment in the
real estate market.
2020DISPOSITIONS
City: Sarnia, ON
Address: 1378 Exmouth Street
Sale Price: $5,750,000
2020 Appraisal: $5,360,000
GLA: 21,802 sq. ft.
2020 DISPOSITIONS
Q2 - Sarnia
City: Winnipeg, MB
Address: 777 Sherbrooke Street
Sale Price: $6,285,000
2020 Appraisal: $5,800,000
GLA: 16,839 sq. ft.
2020 DISPOSITIONS
Q2 - Winnipeg
City: Brandon, MB
Address: 139 Victoria Avenue East
Sale Price: $6,500,000
2020 Appraisal: $5,560,000
GLA: 16,986 sq. ft.
2020 DISPOSITIONS
Q3 - Brandon
Thank You
For more information visit
SkylineWealth.ca or call 1 (888) 977-7348
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