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Slate Retail REIT
Investor Update Q4 2019
Westhaven Town Center Franklin, TN
Company Overview
Slate Retail REIT | 1
100% Grocery-anchored1
TSX SRT.UNSRT.U
76 Properties2All U.S. Locations
9.9M Square Feet
$1.25B Enterprise Value3
8.4% Current Dividend Yield4
3.1%CAGR
U.S. grocery-anchored shopping centers with resilient cash flows that generate excess yield
1 Excludes properties under development2 As of December 31, 20193 In US$ 4 Annual US$0.864 distribution divided by January 24, 2020 unit price of US$10.26
Track record of distribution growth
$0.76
$0.79
$0.82
$0.84
$0.86 $0.864
2015 2016 2017 2018 2019 2020
Performance UpdateQuarterly
Annual
Note: All figures in thousands of US$ expect per unit amounts, unless otherwise noted
Slate Retail REIT | 2
Total Leasing Spreads (New & Renewal)
Total Leasing Spreads (New & Renewal)
Net Operating Income
Net Operating Income
Funds From Operations Per Unit
Funds From Operations Per Unit
6.5%7.0%
11.0%
6.5%
4.8%
Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
6.0%
12.5%13.1%
11.7%
7.4%
2015 2016 2017 2018 2019
$25,353
$24,266
Q4 2018 Q4 2019
$85,066
$100,932 $98,727
2017 2018 2019
$0.30 $0.29
Q4 2018 Q4 2019
$1.26 $1.27$1.20
2017 2018 2019
Portfolio
Mooresville Consumer SquareMooresville, NC
Diversified Portfolio
Geographically well diversified with 76 properties totaling 9.9M sq. ft. in 21 states and 19 metropolitan statistical areas
Top Five States (Ranked by Annual Base Rent1)
16.2% Florida
11.1% North Carolina
10.4% Pennsylvania
9.4% Georgia
8.9% South Carolina
Top Five Tenants (Ranked by Annual Base Rent1)
8.3% Walmart
6.4% Kroger
4.1% Ahold Delhaize
4.0% Publix
3.4% Southeastern Grocers
73.8% Remaining tenants (1,168 leases)
Florida
South Carolina
North Carolina
Pennsylvania
Georgia
1 As of December 31, 2019
Slate Retail REIT | 4
Necessity Based Tenancy
We derive the majority of our income from retailers that provide in-person services and leverage their physical stores to provide complementary e-commerce solutions
Supermarkets & Grocery1
38%
Financial Institutions4%
Fitness Facilities4%
Medical & Personal Services 15%
Liquor Stores1%
Sporting & Footwear2%
Dollar Stores1%
Pharmacy 1%
Discount & Off-Price7%
Other Necessity-Based & Daily Needs15%
Restaurants12%
1 Includes Walmart
Slate Retail REIT | 5
Drivers of long-term stable cash flow
94.8% Tenant retention since Q1 2016
100% Grocery-anchored centers
93.0% Occupancy rate
Company overview
(in USDs)30-Sep-18
Units outstanding45,800,000
SRT.U - unit price $10.00
Market Cap$ 458,000,000
Total Debt Outstanding$ 880,312,025
Cash $ (6,000,000)
Total Enterprise Value$ 1,332,312,025
USDCADCADCADCADCADCADCAD
Slate Retail REITHistorical distributionsSlate Retail REITPlaza Retail REITSmartCenters REITCrombie REITRioCan REITCT REITChoice Properties REIT
$ 0.18000Q3 2014$ 0.19774$ 0.06000$ 0.38700$ 0.22260$ 0.35250$ 0.16250$ 0.16250
$ 0.18600Q4 2014$ 0.21273$ 0.06000$ 0.40020$ 0.22260$ 0.35250$ 0.16358$ 0.16250
$ 0.18900Q1 2015$ 0.23401$ 0.06250$ 0.40020$ 0.22260$ 0.35250$ 0.16575$ 0.16250
$ 0.18900Q2 2015$ 0.23630$ 0.06250$ 0.40020$ 0.22260$ 0.35250$ 0.16575$ 0.16250
$ 0.18900Q3 2015$ 0.24750$ 0.06250$ 0.40020$ 0.22260$ 0.35250$ 0.16575$ 0.16250
$ 0.19089Q4 2015$ 0.26316$ 0.06250$ 0.41250$ 0.22260$ 0.35250$ 0.16717$ 0.16250
$ 0.19467Q1 2016$ 0.25874$ 0.06500$ 0.41250$ 0.22260$ 0.35250$ 0.17001$ 0.16750
$ 0.19467Q2 2016$ 0.25091$ 0.06500$ 0.41250$ 0.22260$ 0.35250$ 0.17001$ 0.16750
$ 0.19728Q3 2016$ 0.25790$ 0.06500$ 0.41250$ 0.22260$ 0.35250$ 0.17001$ 0.17750
$ 0.20250Q4 2016$ 0.26804$ 0.06500$ 0.42501$ 0.22260$ 0.35250$ 0.17167$ 0.17750
$ 0.20250Q1 2017$ 0.26754$ 0.06750$ 0.42501$ 0.22260$ 0.35250$ 0.17499$ 0.17750
$ 0.20250Q2 2017$ 0.26673$ 0.06750$ 0.42501$ 0.22260$ 0.35250$ 0.17499$ 0.18250
$ 0.20250Q3 2017$ 0.25155$ 0.06750$ 0.42501$ 0.22260$ 0.35250$ 0.17499$ 0.18500
$ 0.20750Q4 2017$ 0.26231$ 0.06750$ 0.43749$ 0.22260$ 0.35250$ 0.17733$ 0.18500
$ 0.21000Q1 2018$ 0.26503$ 0.06993$ 0.43749$ 0.22260$ 0.36000$ 0.18201$ 0.18500
$ 0.21000Q2 2018$ 0.27100$ 0.06999$ 0.43749$ 0.22260$ 0.36000$ 0.18201$ 0.18500
$ 0.21000Q3 2018
$ 0.21000Q4 2018 Est.
NotesUnit priceUSDCADCADCADCADCADCAD
Fact Set30-Sep-14$10.69$3.92$25.72$12.95$25.67$11.02$10.31
Fact Set30-Sep-18$10.00$4.13$31.65$13.62$25.61$13.40$12.76
Change-6.5%5.4%23.1%5.2%-0.2%21.6%23.8%
SRTPlazaSmartCentersCrombieRioCanCTChoice
Current Dividend Yield8.38%6.66%5.49%6.54%5.56%5.35%5.80%
201420152016201720182019
SRT Annual Distributions$ 0.37$ 0.76$ 0.79$ 0.82$ 0.840.87
SRT Annual Distributions201420152016201720180.365999999999999990.757889999999999950.789120000000000040.815000000000000060.84
Current Dividend YieldSRTPlazaSmartCentersCrombieRioCanCTChoice8.3749999999999991E-26.6566585956416471E-25.489668246445497E-26.5374449339207052E-25.5642327215931271E-25.3458208955223879E-25.7994043887147337E-2
Performance update
Total Leasing Spreads (New & Renewal)
Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018
Lease spreads11.10%12.50%8.30%22.0%15%
Total Leasing Spreads (New & Renewal)
20142015201620172018
Lease spreads9.6%6.0%12.5%13.1%14.7%
Total leasing spreads (new & renewal)
Q3 2017Q4 2017Q1 2018Q2 2018Q3 20180.1110.1258.3000000000000004E-20.220.152
Total leasing spreads (new & renewal)
201420152016201720189.6000000000000002E-20.060.1250.131000000000000010.14699999999999999
Necessity-based tenancy
Supermarkets & Grocery1 38%
Other Necessity-Based & Daily Needs15%Liquor Stores1%Dollar Stores1%Pharmacy 1%
Sporting & Footwear2%Restaurants12%
Financial Institutions4%
Medical & Personal Services 15%
Fitness Facilities4%
Discount & Off-Price7%
Last mile food dist.
PowerTTM NOI% of Total NOI5-Mile Population5-Mile Avegage HH Income5-mile Median HH Income3-Mile Population3-Mile Avegage HH Income3-mile Median HH Income
Dorman$ 3,407,4303.4%87,435$ 54,264$ 36,82045,796$ 53,054$ 36,708
Uptown$ 2,235,9982.2%71,008$ 62,595$ 51,78449,280$ 60,220$ 49,271
Cordova$ 2,576,8082.6%138,585$ 59,811$ 46,79262,462$ 60,437$ 49,589
Total Power$ 8,220,2368.3%99,001$ 58,269$ 44,01651,968$ 57,318$ 44,163
Community
Mooresville Consumer$ 3,115,9093.1%63,543$ 92,560$ 79,24129,139$ 81,808$ 71,829
West Valley$ 2,334,0222.3%104,299$ 102,783$ 84,63347,718$ 104,317$ 86,555
Good Homes$ 1,665,6081.7%245,677$ 68,663$ 55,501103,228$ 69,768$ 56,220
Wedgewood$ 1,512,0761.5%98,436$ 84,615$ 59,79452,352$ 72,010$ 53,705
Cambridge$ 2,486,5302.5%248,999$ 95,678$ 75,08295,275$ 96,719$ 74,761
Summit Ridge$ 1,680,4141.7%27,234$ 52,345$ 42,92515,129$ 50,845$ 40,347
Charles Town$ 1,707,0071.7%32,575$ 78,484$ 62,71518,063$ 75,290$ 57,687
Kennywood$ 703,1330.7%217,357$ 54,416$ 44,33287,266$ 45,472$ 37,990
Indy Square$ 2,208,3062.2%212,950$ 76,904$ 58,98783,763$ 61,515$ 52,187
Derry $ 1,984,5602.0%53,573$ 94,329$ 82,18029,054$ 81,878$ 82,180
Total Community$ 19,397,56519.5%126,273$ 83,812$ 67,93154,152$ 77,754$ 64,848
Neighbourhood
All others$ 71,771,87472.2%113,593$ 76,735$ 63,23451,224$ 75,329$ 62,824
Total Neighborhood
TOTAL$ 99,389,675
*TTM as of Aug 31, 2018
5-Mile Population5-Mile Avegage HH Income5-mile Median HH Income3-Mile Population3-Mile Avegage HH Income3-mile Median HH Income
11 Galleria$1,241,0661074846101746725563846478148088
98 Palms$1,036,817172029152664209134508926464335
Abbott's Village$1,277,35617354113274211268883185134558117563
Alta Mesa Plaza$1,219,20824067568550568121283456463956397
Armstrong Plaza$409,308525187776164770229087028458824
Barefoot Commons$981,177298106406747194128906031046314
Battleground Village$1,044,1061900357135355676682339565372521
Bellview Plaza$846,1391288205201943977561415713448445
Birmingham Shoppes$987,4904037414993612207210941185796151790
Bloomingdale Plaza$810,9532066547856966882850187971069153
Buckeye Plaza$682,55735523249433312471625154435035179
Cambridge Crossings$2,443,533
Canton Shopping Center$1,005,0811935748524672939878978764977383
Charles Town Plaza$1,692,157
City Center Plaza$937,24925039166868566981052446358852345
Cordova Commons$2,629,094
County Line Plaza$706,8672637607990667042909707698863876
Cudahy Centre$528,3211385385839351377564415759350779
Derry Meadows Shoppes$2,054,332
Dill Creek Commons$677,965994567916361784416687041252269
Dorman Centre$3,625,888
Douglas Commons$1,121,978882066360557435380176232854426
Duluth Station$641,1381990149663968812656549688470129
East Brainerd Mall$1,675,177222475240540054135354620635084
East Little Creek$807,23520737461854493141204886340851304
Eastpointe Shopping Center$966,071392106294448776203967116156473
Errol Plaza$682,672773066650956201388616313254383
Eustis Village$1,685,469707955830947392295115505244544
Flowers Plantation$555,334407307691863876152789320779806
Forest Plaza$1,379,372551585768650412420505245445617
Fuquay Crossing$932,347591868239074118245417686969588
Glidden Crossing$1,285,630505845736648668387365173544306
Good Homes Plaza$1,821,000
Highland Square$1,176,520212474749937859122114179733666
Hocking Valley Mall$1,174,284509245464246428430935987242675
Independence Square$2,159,290
Kennywood Shops$706,746
Lake Raystown Plaza$1,782,019160415351243309134625104340850
Little River Pavilion$772,391311396342547650154545081942131
Locust Grove$841,933369206888358581135017932866830
Mapleridge Center$1,054,1652453867202756647801907352656724
Merchants Crossing$1,040,155644627015458253387436305250518
Merchants Square$1,230,7841846934861741715849124842641664
Meres Town Center$463,6661153436891056505466106701452904
Mitchellville Plaza$2,917,80414722510776310293854186118599114652
Mooresville Consumer Square$3,134,756
Mooresville Town Square$1,386,238647089571675976303149057775114
Mulberry Square$1,733,0036942210028585859402078723474133
National Hills$1,733,0001311726638654490480467799861699
North Augusta Plaza$2,308,452936775346840716457595009437278
North Branch Marketplace$922,31812361709276468698766937663112
North Hixson Marketplace$455,648475527866065442222867827067003
North Lake Commons$1,187,5678538616067912510941309157351123147
North Pointe$638,780988857663763468489108483369001
North Summit Square$1,388,228779605483742611316234470837917
Northland Center$1,049,104888247189655642736856570949474
Norwin Town Square$1,379,599844797585864513330478271168552
Oak Hill Village$645,5381684635841050590700765221047657
Oakland Commons$591,9881267387625162737730707076457970
Phalen Retail Center$764,58529790659619499451323115317146433
Pinewood Plaza$444,24021257753742443631016754739440001
Plaza St. Clair$680,8731149197626662588338858669070807
Plymouth Station$1,620,53512705314036810607853245143534109701
Robson Crossing$957,117657246659953262212756479953268
Roxborough Marketplace$1,370,7582577712892311472510637114533104270
Salerno Village Square$776,732834468011857770448777521855698
Seminole Oaks$778,6512389736540248611989686171051101
Shops at Cedar Point$1,226,14821398871214584721038467131757302
Smithfield Shopping Plaza$1,158,944190698843676285121369115777629
Southgate Crossing$2,192,837523747691160656322177409658877
Springboro Plaza$828,111814658259970072322847568164327
St. Elmo Central$713,159955415019436836359034719131247
Stadium Center$439,589627265490469190374614700667140
Stonefield Square$960,8891805657873769190604532717667140
Summit Ridge$1,702,783
Sunset Plaza$670,784785246135244001417686363145852
Taylorsville Town Center$1,209,10438433864644563711512436422655506
Uptown Station$2,782,374
Waterbury Plaza$1,805,9041618556716557702801135554447207
Watford Plaza$1,462,4063634986857897433369455876811
Wausau Pick 'n Save$694,110560226538950259405065967746454
Wedgewood Commons$1,660,312
Wellington Park$1,285,27416041890245736476075810215280708
West Valley Marketplace$2,528,627
Westhaven Town Center$673,018512019808979980194458968370487
Westminster Plaza$1,265,43533442065997568091335365776050643
Distributon growth
USDCADCADCADCADCADCAD
Slate Retail REITPlaza Retail REITSmartCenters REITCrombie REITRioCan REITCT REITChoice Properties REITNotes
Distribution yield8.6%6.8%5.5%6.5%5.6%5.4%5.8%as of Sept 30, 2018
FFO per unit$ 1.30$ 0.35$ 2.26$ 1.20$ 1.82$ 1.16$ 0.97SRT at 9/30/2018 | RBC - 2018E
Distribution$ 0.84$ 0.28$ 1.75$ 0.89$ 1.44$ 0.73$ 0.74Monthly (Sept 2018) annualized
FFO Payout Ratio64.6%80.0%77.4%74.2%79.1%62.8%76.3%TTM
6.5%8.0%7.7%7.4%7.9%6.3%7.6%
CADCADCADCADCADCADCAD
Historical distributionsSlate Retail REITPlaza Retail REITSmartCenters REITCrombie REITRioCan REITCT REITChoice Properties REIT
Q3 2014$ 0.1977$ 0.0600$ 0.3870$ 0.2226$ 0.3525$ 0.1625$ 0.1625$ - 0
Q4 2014$ 0.2127$ 0.0600$ 0.4002$ 0.2226$ 0.3525$ 0.1636$ 0.1625$ - 0
Q1 2015$ 0.2340$ 0.0625$ 0.4002$ 0.2226$ 0.3525$ 0.1658$ 0.1625$ - 0
Q2 2015$ 0.2363$ 0.0625$ 0.4002$ 0.2226$ 0.3525$ 0.1658$ 0.1625$ - 0
Q3 2015$ 0.2475$ 0.0625$ 0.4002$ 0.2226$ 0.3525$ 0.1658$ 0.1625$ - 0
Q4 2015$ 0.2632$ 0.0625$ 0.4125$ 0.2226$ 0.3525$ 0.1672$ 0.1625$ - 0
Q1 2016$ 0.2587$ 0.0650$ 0.4125$ 0.2226$ 0.3525$ 0.1700$ 0.1675$ - 0
Q2 2016$ 0.2509$ 0.0650$ 0.4125$ 0.2226$ 0.3525$ 0.1700$ 0.1675$ - 0
Q3 2016$ 0.2579$ 0.0650$ 0.4125$ 0.2226$ 0.3525$ 0.1700$ 0.1775$ - 0
Q4 2016$ 0.2680$ 0.0650$ 0.4250$ 0.2226$ 0.3525$ 0.1717$ 0.1775$ - 0
Q1 2017$ 0.2675$ 0.0675$ 0.4250$ 0.2226$ 0.3525$ 0.1750$ 0.1775$ - 0
Q2 2017$ 0.2667$ 0.0675$ 0.4250$ 0.2226$ 0.3525$ 0.1750$ 0.1825$ - 0
Q3 2017$ 0.2516$ 0.0675$ 0.4250$ 0.2226$ 0.3525$ 0.1750$ 0.1850$ - 0
Q4 2017$ 0.2623$ 0.0675$ 0.4375$ 0.2226$ 0.3525$ 0.1773$ 0.1850$ - 0
Q1 2018$ 0.2650$ 0.0699$ 0.4375$ 0.2226$ 0.3600$ 0.1820$ 0.1850$ - 0
Q2 2018$ 0.2710$ 0.0700$ 0.4375$ 0.2226$ 0.3600$ 0.1820$ 0.1850$ - 0
Q3 2018$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0
Slate Retail REITPlaza Retail REITSmartCenters REITCrombie REITRioCan REITCT REITChoice Properties REIT
Q3 2014100.0100.0100.0100.0100.0100.0100.0
Q4 2014107.6100.0103.4100.0100.7100.0100.0
Q1 2015118.3104.2103.4100.0102.0100.0100.0
Q2 2015119.5104.2103.4100.0102.0100.0100.0
Q3 2015125.2104.2103.4100.0102.0100.0100.0
Q4 2015133.1104.2106.6100.0102.9100.0100.0
Q1 2016130.8108.3106.6103.1104.6100.0100.0
Q2 2016126.9108.3106.6103.1104.6100.0100.0
Q3 2016130.4108.3106.6109.2104.6100.0100.0
Q4 2016135.6108.3109.8109.2105.6100.0100.0
Q1 2017135.3112.5109.8109.2107.7100.0100.0
Q2 2017134.9112.5109.8112.3107.7100.0100.0
Q3 2017127.2112.5109.8113.8107.7100.0100.0
Q4 2017132.7112.5113.0113.8109.1100.0100.0
Q1 2018134.0116.6113.0113.8112.0102.1100.0
Q2 2018137.0116.7113.0113.8112.0102.1100.0
Q3 2018- 0- 0- 0- 0- 0- 0- 0
Slate Retail REITPlaza Retail REITSmartCenters REITCrombie REITRioCan REITCT REITChoice Properties REIT
Q3 20140.0%0.0%0.0%0.0%0.0%0.0%0.0%
Q4 20147.6%0.0%3.4%0.0%0.7%0.0%0.0%
Q1 201518.3%4.2%3.4%0.0%2.0%0.0%0.0%
Q2 201519.5%4.2%3.4%0.0%2.0%0.0%0.0%
Q3 201525.2%4.2%3.4%0.0%2.0%0.0%0.0%
Q4 201533.1%4.2%6.6%0.0%2.9%0.0%0.0%
Q1 201630.8%8.3%6.6%3.1%4.6%0.0%0.0%
Q2 201626.9%8.3%6.6%3.1%4.6%0.0%0.0%
Q3 201630.4%8.3%6.6%9.2%4.6%0.0%0.0%
Q4 201635.6%8.3%9.8%9.2%5.6%0.0%0.0%
Q1 201735.3%12.5%9.8%9.2%7.7%0.0%0.0%
Q2 201734.9%12.5%9.8%12.3%7.7%0.0%0.0%
Q3 201727.2%12.5%9.8%13.8%7.7%0.0%0.0%
Q4 201732.7%12.5%13.0%13.8%9.1%0.0%0.0%
Q1 201834.0%16.6%13.0%13.8%12.0%2.1%0.0%
Q2 201837.0%16.7%13.0%13.8%12.0%2.1%0.0%
Q3 2018-100.0%-100.0%-100.0%-100.0%-100.0%-100.0%-100.0%
Slate Retail REITPlaza Retail REITCrombie REITSmartCenters REITRioCan REITCT REITChoice Properties REIT
37.0%16.7%13.8%13.0%12.0%2.1%0.0%
USD
Slate Retail REIT
Q3 2014$ 0.18
Q4 2014$ 0.19
Q1 2015$ 0.19
Q2 2015$ 0.19
Q3 2015$ 0.19
Q4 2015$ 0.19
Q1 2016$ 0.19
Q2 2016$ 0.19
Q3 2016$ 0.20
Q4 2016$ 0.20
Q1 2017$ 0.20
Q2 2017$ 0.20
Q3 2017$ 0.20
Q4 2017$ 0.21
Q1 2018$ 0.21
Q2 2018$ 0.21
Q3 2018$ 0.21
Slate Retail REIT
Q3 2014100.0
Q4 2014103.3
Q1 2015105.0
Q2 2015105.0
Q3 2015105.0
Q4 2015106.1
Q1 2016108.2
Q2 2016108.2
Q3 2016109.6
Q4 2016112.5
Q1 2017112.5
Q2 2017112.5
Q3 2017112.5
Q4 2017115.3
Q1 2018116.7
Q2 2018116.7
Q3 2018116.7
Slate Retail REIT
Q3 20140.0%
Q4 20143.3%
Q1 20155.0%
Q2 20155.0%
Q3 20155.0%
Q4 20156.1%
Q1 20168.2%
Q2 20168.2%
Q3 20169.6%
Q4 201612.5%
Q1 201712.5%
Q2 201712.5%
Q3 201712.5%
Q4 201715.3%
Q1 201816.7%
Q2 201816.7%
Q3 201816.7%
Growth in distributions per unit - $CAD
Slate Retail REITQ3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 201807.5806614746636969E-20.183422676241529190.195003540002022690.251643572367755470.330838474764842740.308485890563366060.268888439364822540.3042378881359360.355517346009911920.352988773136441610.348892485081420120.272125012642864260.326539900879943220.340295337311621090.37048649742085549Plaza Retail REITQ3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018004.1666666666666741E-24.1666666666666741E-24.1666666666666741E-24.1666666666666741E-28.3333333333333481E-28.3333333333333481E-28.3333333333333481E-28.3333333333333481E-20.125000000000000220.125000000000000220.125000000000000220.125000000000000220.16550000000000020.16650000000000009SmartCenters REITQ3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 201803.4108527131782918E-23.4108527131782918E-23.4108527131782918E-23.4108527131782918E-26.5891472868216949E-26.5891472868216949E-26.5891472868216949E-26.5891472868216949E-29.821705426356564E-29.821705426356564E-29.821705426356564E-29.821705426356564E-20.130465116279069320.130465116279069320.13046511627906932Crombie REITQ3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 20180000003.0756733804714997E-23.0756733804714997E-29.230712426385046E-29.230712426385046E-29.230712426385046E-20.123076165685134020.138460686395776020.138460686395776020.138460686395776020.13846068639577602RioCan REITQ3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 201806.6645743718500849E-31.9993723115550033E-21.9993723115550033E-21.9993723115550033E-22.8732130879194351E-24.6208946406483431E-24.6208946406483431E-24.6208946406483431E-25.6424268158349555E-27.6854911662082248E-27.6854911662082248E-27.6854911662082248E-29.1254823047242972E-20.120054645817564420.12005464581756442CT REITQ3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018000000000000002.1276595744680771E-22.1276595744680771E-2Choice Properties REITQ3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 20180000000000000000
Growth in distributions per unit - $CAD
Slate Retail REITPlaza Retail REITCrombie REITSmartCenters REITRioCan REITCT REITChoice Properties REIT0.370486497420855490.166500000000000090.138460686395776020.130465116279069320.120054645817564422.1276595744680771E-20
Dividend Yield and FFO payout ratio
FFO Payout RatioSlate Retail REITPlaza Retail REITSmartCenters REITCrombie REITRioCan REITCT REITChoice Properties REIT6.4615384615384616E-27.9988571428571437E-27.743185840707964E-27.4200000000000016E-27.9120879120879117E-26.2762068965517254E-27.6289072164948457E-2Distribution yield
Slate Retail REITPlaza Retail REITSmartCenters REITCrombie REITRioCan REITCT REITChoice Properties REIT8.6153846153846164E-26.7786924939467308E-25.52909952606635E-26.5374449339207052E-25.6228035923467395E-25.4331343283582093E-25.7994043887147337E-2
Financial strength
Debt Maturity
30-Sep-18
Debt TypeMaturityYear to MaturityAmount Outstanding
RevolverRevolving Facility26-Feb-212.41$ 148,123,895Revolving Facility$ 148,123,895
Term loanTerm Loan26-Feb-212.41$ 362,500,000Term Loan$ 612,500,000
PNC Term LoanTerm Loan9-Feb-234.36$ 250,000,000Mortgage Debt$ 119,688,130
Mortgage 1 Derry Meadows Mortgage Debt1-Mar-212.42$ 11,007,549
Mortgage 2 (Guggenheim)Mortgage Debt1-Jan-256.26$ 44,582,560
Mortgage 3 (AIG)Mortgage Debt15-Jun-256.71$ 56,018,019
Mortgage 4 Plymouth StationMortgage Debt1-Jan-3112.25$ 8,080,003
weighted avg. years to maturity3.5$ 880,312,025
notes:
Maturity date includes 1-year option to extend on Revolving Facility
2018201920202021202220232024202520262027+
Revolver000$ 148,123,8950$ - 00$ - 00$ - 0
Term Loan$ 362,500,000$ 250,000,0000
Mortgage$ 11,007,549$ 100,600,578$ 8,080,003
Percentage0.0%0.0%0.0%59.3%0.0%28.4%0.0%11.4%0.0%0.9%
Consolidated Debt
Revolver2018201920202021202220232024202520262027+000148123895000000Term Loan
[CELLRANGE]
2018201920202021202220232024202520262027+36250000025000000000.0%0.0%0.0%59.3%0.0%28.4%0.0%11.4%0.0%0.9%Mortgage
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
2018201920202021202220232024202520262027+11007548.686012164100600578.369118158080002.50.0%0.0%0.0%59.3%0.0%28.4%0.0%11.4%0.0%0.9%
Trading comps
CADCADCADCADCADCADUSD
RioCan REITSmartCenters REITChoice Properties REITPlaza Retail REITCT REITCrombie REITSlate Retail REITNotes
FFO Multiple14.1x14x13.2x11.8x11.6x11.4x7.5x
FFO$ 1.82$ 2.26$ 0.97$ 0.35$ 1.16$ 1.20$ 1.30SRT at 9/30/2018 | RBC - 2018E
Unit price$ 25.61$ 31.65$ 12.76$ 4.13$ 13.40$ 13.62$ 9.7530-Sep-18
CADCADCADUSD
InterRentCap REITKillam Slate Retail REIT
FFO Multiple26.3x24.7x17.6x7.5x
FFO$ 0.45$ 1.98$ 0.94$ 1.30RBC - 2018E
Unit price$ 11.85$ 48.97$ 16.53$ 9.7530-Sep-18
CADCADUSDUSD
GraniteSummitWPTSlate Retail REIT
FFO Multiple15.4x15.3x14.9x7.5x
FFO$ 3.70$ 0.58$ 0.92$ 1.30RBC - 2018E
Unit price$ 56.96$ 8.87$ 13.72$ 9.7530-Sep-18
Retail REITs - FFO Multiple
FFO Multiple
RioCan REITSmartCenters REITChoice Properties REITPlaza Retail REITCT REITCrombie REITSlate Retail REITCADCADCADCADCADCADUSD14.07142857142857114.00442477876106313.15463917525773111.811.55172413793103611.357.5
Residential REITs - FFO Multiple
FFO Multiple
InterRentCap REITKillam Slate Retail REITCADCADCADUSD26.33333333333333224.73232323232323217.5851063829787267.5
Industrial REITs - FFO Multiple
FFO Multiple
GraniteSummitWPTSlate Retail REITCADCADUSDUSD26.33333333333333224.73232323232323217.5851063829787267.5
ignore for now -->
land area
*use squares within squares
total acres
building
parking
excess
Last Mile Food Distribution
Grocery-anchored neighbourhood shopping centers located close to households serving as critical food distribution points
Note: data is based on 5-mile radius amounts 1 Percentage of total trailing twelve month net operating income
Neighbourhood 71.9%1
Avg. Household Income $83,131
Avg. Population 110,892
Power Centers 9.6%1
Avg. Household Income $61,648
Avg. Population 98,192
Community Centers 18.5%1
Avg. Household Income $93,513
Avg. Population 134,633
Slate Retail REIT | 6
Growth & Value Creation
Mooresville Town Square Mooresville, NC
6.2%
12.1% 12.4% 14.7%
17.7%
28.6%
$12.13
$11.37$11.61
$10.82$10.67
$11.19
$11.82
$6.00
$7.00
$8.00
$9.00
$10.00
$11.00
$12.00
$13.00
2020 2021 2022 2023 2024 2025+
Percentage of Portfolio GLA Expiring Average Expiring Base Rent
Market Rent
Organic Income Growth
Significant opportunity to increase expiring rents to current market rents
Average estimated spread of 5.8%
Sq. Ft. Expiring
619,259 1,193,703 1,217,989 1,447,791 1,742,782 2,823,815
Slate Retail REIT | 8
Stable Distribution Growth
1 Since Slate Retail TSX listing in April 20142 In US$
Higher yields in U.S. markets & organic growth drive outsized distribution growth
Low payout ratio supports distribution
Slate Retail REIT | 9
Growth in Distribution Per Unit1 – C$
2 2
Dividend Yield and FFO Payout Ratio
19.5% 19.2%
18.0%
16.7%
13.8%
2.1%
0.0%
SmartCentresREIT
Slate RetailREIT
CT REIT Plaza RetailREIT
ChoiceProperties
REIT
RioCan REIT Crombie REIT
72.0%
76.7%73.7%
77.4%79.5%
65.4%
74.9%
8.4%
5.9%
5.0%
5.8%
5.2%
4.7%
5.5%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
4 .0 %
14 .0 %
2 4. 0%
3 4. 0%
4 4. 0%
5 4. 0%
6 4. 0%
7 4.0 %
8 4. 0%
9 4. 0%
Slate RetailREIT
Plaza RetailREIT
ChoiceProperties
REIT
SmartCentresREIT
RioCan REIT CT REIT Crombie REIT
2020E FFO Payout Ratio Distribution yield
Value Creation Opportunity
$48M9% yield on investment
Current & Recently Completed1:
$3.6MProjected Incremental NOI
$84.9MValue Creation + Investment
Investment
$50M-$75M
Future:
Redevelopment Approach• Driven by tenant demand not vice-
versa• Visible value creation; longer lease
term, improved tenant mix, stronger tenant credit
• Build to own long-term
Risk Management• Pre-leased prior to build-out• Phased construction• Experienced team • Leverage long-standing relationships
1 Completed within the last 12 months
Slate Retail REIT | 10
Hocking Valley Mall North Augusta Plaza
Financial Metrics
St. Elmo CentralChattanooga, TN
31.6%
56.7%
10.7%
0.9%
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
500,000,000
2019 2020 2021 2022 2023 2024 2025 2026 2027+
Revolver Term Loan Mortgage
Financial Strength
$185M Deployable Capital Availability
2.4 years Weighted Average Debt Maturity1
107.6% Fixed Rate Debt
4.06% Weighted Average Interest Rate2
2.51x Interest Coverage Ratio3
87.1% Flexible Bank Debt
Ample liquidity and staggered debt maturities
1 Includes impact of Slate Retail REIT’s extension option2 Includes the impact of interest rate swaps 3 For the three months ended December 31, 2019
1
Slate Retail REIT | 12
Consolidated Debt Maturities
Management Platform
Slate Retail benefits from the ability to leverage the entire $6.2B Slate Asset Management platform and the expertise of more than 90real estate professionals
1 As of December 31, 20192 As of September 30, 2019
• Annual asset management fee equal to 40 bps of Gross Book Value • Performance fee totaling 15% of FFO per unit above $1.32 (plus inflation
mechanism). Calculation of FFO does not include gain from sales
• Acquisition fee equal to 75 bps of gross acquisition cost, capitalized upon closing
• No leasing, property management, construction, re-financing or disposition fees
• 5-year term(s) with internalization mechanism at $750M market cap (C$) equal to 1x trailing twelve-month fees
• Total trailing twelve-month fees of $5.5M1
• Slate Asset Management and insiders own 8.0% of Slate Retail REIT
Slate Retail REIT | 13
REIT Comparison – General & Administrative Expense
U.S. REITs (US$ thousands)2 Canadian REITs (C$ thousands)2
Slate Retail REIT1 Brixmor Kimco Realty Regency Centers Crombie REIT First Capital Plaza Retail REIT
G&A (quarterly figure) 2,479$ 24,550$ 23,832$ 16,705$ 6,112$ 9,519$ 2,523$
Total assets 1,315,080$ 8,160,161$ 11,085,131$ 11,172,950$ 3,929,784$ 10,585,127$ 1,171,178$
Total revenue 34,338$ 292,965$ 282,871$ 282,276$ 97,346$ 195,478$ 28,437$
G&A as % of total assets 0.2% 0.3% 0.2% 0.1% 0.2% 0.1% 0.2%
G&A as % of total revenue 7.2% 8.4% 8.4% 5.9% 6.3% 4.9% 8.9%
15.2x
13.5x
14.7x
12.9x
13.6x 13.6x
8.6x
9.2x 9.4x
7.2x
8.7x
6.7x
9.0x9.6x
-1 0 .0 x
-8 .0 x
-6 .0 x
-4 .0 x
-2 .0 x
0 .0 x
2 .0 x
4 .0 x
6 .0 x
8 .0 x
1 0. 0x
5 .0 x
7 .0 x
9 .0 x
11 .0 x
13 .0 x
15 .0 x
17 .0 x
RioCan REIT SmartCentresREIT
ChoiceProperties
REIT
Plaza RetailREIT
CT REIT Crombie REIT Slate RetailREIT¹
FFO 2020E Multiple Debt / 2020E EBITDA
REIT/REOC Trading Comps
1 In US$
At $11.29 NAV 9.5x
Slate Retail REIT | 14
Residential REITsRetail REITs
Industrial REITs
31.1x
25.2x
19.6x
8.6x
InterRent REIT CAPREIT Killam REIT Slate Retail REIT¹
FFO 2020E Multiple
20.8x19.8x
18.2x
8.6x
WPT Industrial REIT Summit IndustrialIncome REIT
Granite REIT Slate Retail REIT¹
FFO 2020E Multiple
REIT/REOC Trading Comps
Source: CIBC, SNL Financial, FactSet, company reports
Slate Retail REIT | 15
2020E FFO 2020E AFFO Debt /Price
Jan-24 2020Market Cap TEV Yield Multiple Payout Ratio Multiple Payout Ratio GBV
2020E EBITDA
Implied Cap Rate
TEV / OwnedSq. Ft.
Canadian Retail Comparables – C$
Choice Properties REIT $14.80 $10,364 $17,196 5.0% 14.7x 73.7% 17.2x 85.9% 43.5% 7.2x 5.6% $263
RioCan REIT $27.45 $8,720 $15,125 5.2% 15.2x 79.5% 16.8x 88.0% 43.0% 9.2x 5.4% $398
SmartCentres REIT $32.17 $5,424 $9,727 5.8% 13.5x 77.4% 14.4x 83.1% 44.3% 9.4x 5.9% $284
First Capital REIT $21.80 $4,776 $9,628 3.9% 17.8x 70.1% 19.9x 78.6% 48.1% 12.1x 5.3% $420
CT REIT $16.40 $3,727 $6,254 4.8% 13.6x 65.4% 15.7x 75.5% 42.8% 6.7x 6.0% $230
Crombie REIT $16.16 $2,452 $4,729 5.5% 13.6x 74.9% 16.3x 89.6% 47.9% 9.0x 6.2% $267
Plaza Retail REIT $4.71 $487 $1,080 5.9% 12.9x 76.7% 14.8x 88.2% 56.6% 8.7x 6.9% $162
Average 14.5x 73.9% 16.5x 84.1% 46.6% 8.9x 5.9% $289
U.S. Retail Comparables – US$
Regency Centers $63.79 $10,660 $14,816 3.7% 16.3x 59.9% 19.8x 72.5% 31.9% 5.2x 5.9% $344
Kimco $20.35 $8,592 $14,625 5.5% 13.5x 74.5% 17.7x 97.7% 39.9% 6.6x 6.5% $245
Brixmor Property Group $21.05 $6,270 $11,139 5.4% 10.7x 58.0% 14.2x 77.0% 46.2% 6.4x 7.6% $156
Weingarten Realty Investors $30.71 $3,952 $5,830 5.1% 14.4x 74.0% 18.0x 92.4% 35.4% 5.5x 6.4% $224
SITE Centers $13.47 $2,610 $4,994 5.9% 11.9x 70.9% 14.8x 87.8% 35.0% 6.0x 7.8% $212
Acadia Realty Trust $26.02 $2,262 $4,728 4.5% 18.7x 83.4% 20.9x 93.3% 37.5% 11.1x 7.1% $355
Cedar Realty Trust $2.84 $244 $1,051 7.0% 6.2x 43.9% 12.2x 86.2% 40.2% 8.3x 8.9% $123
Average 13.1x 66.4% 16.8x 86.7% 38.0% 7.0x 7.2% $237
Slate Retail REIT C$ $13.50 $594 $1,642 8.4% 8.6x 72.0% 10.9x 92.1% 59.9% 9.6x 7.8% $156
Slate Retail REIT US$ $10.26 $451 $1,249 8.4% 8.6x 72.0% 10.9x 92.1% 59.9% 9.6x 7.8% $119
($ millions)
Analyst Coverage
BMO Capital Markets Jenny [email protected]
Raymond JamesJohann [email protected]
Echelon Partners Stephan [email protected]
Slate Retail REIT | 16
RBC Capital MarketsPammi [email protected]
CIBC Capital Markets Sumayya [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]
Cautionary Statements
Forward-Looking StatementsThis presentation contains forward-looking information within the meaning of applicable securities laws. These statements include, but are not limited to, statements concerning theREIT’s objectives, its strategies to achieve those objectives, as well as statements with respect to management’s beliefs, plans, estimates, and intentions, and similar statementsconcerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Readers should not place undue reliance on any such forward-looking statements. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievementsof the REIT to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Actual results and developmentsare likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained herein. Such forward-looking statements are based on anumber of assumptions that may prove to be incorrect, including, but not limited to, the continued availability of mortgage financing and current interest rates; the extent ofcompetition for properties; assumptions about the markets in which the REIT and its subsidiaries operate; the global and North American economic environment; and changes ingovernmental regulations or tax laws. Although the forward-looking information contained in this presentation is based upon what management believes are reasonable assumptions,there can be no assurance that actual results will be consistent with these forward-looking statements. Certain statements included in this presentation may be considered “financialoutlook” for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this presentation. Except as required by applicable law,the REIT undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-IFRS MeasuresThis presentation contains financial measures that do not have a standardized meaning under International Financial Reporting Standards (“IFRS”) as prescribed by the InternationalAccounting Standards Board. Slate Retail uses the following non-IFRS financial measures: Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), Net OperatingIncome (“NOI”), and Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”). Management believes that in addition to conventional measures prepared inaccordance with IFRS, investors in the real estate industry use these non-IFRS financial measures to evaluate the REIT’s performance and financial condition. Accordingly, these non-IFRS financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for performance measures prepared in accordancewith IFRS. In addition, they do not have standardized meanings and may not be comparable to measures used by other issuers in the real estate industry or other industries.
Use of EstimatesThe preparation of the REIT financial statements in conformity with IFRS requires management to make estimates, judgments and assumptions that affect the reported amounts ofassets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reportingperiod. Management’s estimates are based on historical experience and other assumptions that are believed to be reasonable under the circumstances. Actual results could differ fromthose estimates under different assumptions.
Slate Retail REIT | 17
Slide Number 1Company OverviewPerformance UpdateSlide Number 4Diversified PortfolioNecessity Based TenancyLast Mile Food DistributionSlide Number 8Organic Income GrowthStable Distribution GrowthValue Creation OpportunitySlide Number 12Financial StrengthManagement PlatformREIT/REOC Trading CompsREIT/REOC Trading CompsAnalyst CoverageCautionary Statements