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H & R R e a l E s t a t e I n v e s t m e n t T r u s t ( T S X : H R . U N )
STABILITY,SECURITY& GROWTHTHROUGH QUALITY,
DIVERSIFICATION & SCALE
INVESTOR PRESENTATION
As at December 31, 2019unless otherwise noted
2 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Caution Regarding Forward-looking Statements
Forward Looking StatementsCertain statements made in this presentation will contain forward‐looking information within the meaning of applicable securities laws (also known as forward‐looking statements) including, among others, statements made or implied relating to H&R’s objectives, strategies to achieve those objectives, H&R’s beliefs,plans, estimates, projections and intentions and statements with respect to H&R’s development activities, including planned future expansions, redevelopmentof existing properties and building of new properties; the expected yield on cost of H&R’s developments and other investments; the expected costs of any ofH&R’s projects; and the expected occupancy, budget, net leasable area or contributions to rental revenue from H&R’s developments and other properties.Statements concerning forward‐looking information can be identified by words such as “outlook”, “objective”, “may”, “will”, “expect”, “intend”, “estimate”,“anticipate”, “believe”, “should”, “plans”, “project”, “budget” or “continue” or similar expressions suggesting future outcomes or events. Such forward‐lookingstatements reflect H&R’s current beliefs and are based on information currently available to management. Forward‐looking statements are provided for thepurpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statementsmay not be appropriate for other purposes. These statements are not guarantees of future performance and are based on H&R’s estimates and assumptionsthat are subject to risks and uncertainties, including those discussed in H&R’s materials filed with the Canadian securities regulatory authorities from time totime, including H&R’s MD&A for the year ended December 31, 2019 and H&R’s most recently filed annual information form, which could cause the actualresults and performance of H&R to differ materially from the forward‐looking statements made in this presentation. Although the forward‐looking statementsmade in this presentation are based upon what H&R believes are reasonable assumptions, there can be no assurance that actual results will be consistent withthese forward‐looking statements. Readers are also urged to examine H&R’s materials filed with the Canadian securities regulatory authorities from time totime as they may contain discussions on risks and uncertainties which could cause the actual results and performance of H&R to differ materially from theforward‐looking statements made in this presentation. All forward‐looking statements made in this presentation are qualified by these cautionary statements.These forward‐looking statements are made as of February 13, 2020 and H&R, except as required by applicable law, assumes no obligation to update or revisethem to reflect new information or the occurrence of future events or circumstances.
The REIT’s audited annual financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). H&R’s management uses anumber of measures which do not have a meaning recognized or standardized under IFRS or Canadian Generally Accepted Accounting Principles (“GAAP”). Thenon‐GAAP measures REIT’s proportionate share, Same‐Asset property operating income (cash basis), Interest Coverage ratio and Net Asset Value (“NAV”), aswell as other non‐GAAP measures discussed elsewhere in this presentation, should not be construed as an alternative to financial measures calculated inaccordance with GAAP. Further, H&R’s method of calculating these supplemental non‐GAAP financial measures may differ from the methods of other realestate investment trusts or other issuers, and accordingly may not be comparable. H&R uses these measures to better assess its underlying performance andprovides these additional measures so that investors may do the same. These non‐GAAP financial measures are more fully defined and discussed in H&R’sMD&A as at and for the year ended December 31, 2019, available at www.hr‐reit.com and on www.sedar.com.
Non-GAAP Measures
All figures have been reported at H&R’s ownership interest unless otherwise stated.
Other
3 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
H&RTotal Investment Properties
$13.9 billion(1)
H&RTotal Investment Properties
$13.9 billion(1)
Office(1)Office(1) Industrial(1)Industrial(1)Retail(1)
(Primaris)
Retail(1)
(Primaris)
Residential(1)
(Lantower Residential)
Residential(1)
(Lantower Residential)
Long Term LeasesLong Term Leases Pension Fund JVPension Fund JVStable PerformanceStable Performance High Growth OpportunityHigh Growth Opportunity
33 Properties ~10,811,000 Square Feet
86 Properties~8,813,000 Square Feet
311 Properties~13,479,000 Square Feet
22 Properties7,777 Residential Rental Units
The Bow, Calgary
Corus Quay, Toronto
Front St., Toronto
Dufferin Mall, Toronto
Orchard Park, Kelowna
Unilever, Mississauga
Grande Pines, Orlando
Legacy Lakes, Dallas
Stability, Security & Growth through Quality, Diversification & Scale
Fully Internalized Management (Insiders own 6%)
One of the Largest REITs in Canada With a Market Cap of
$6.4 billion
Purolator, Calgary
(1) Figures above are at H&R’s ownership interest including equity accounted investments and excludes assets held for sale.
4 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Portfolio Diversification
By Segment
Fair Value of Investment Properties(1)
By Region
Ontario28%
United States40%
Other Canadian Provinces9%
Alberta23%
$13.9 Billion
Office43%
Industrial7%
Residential 20%
Retail30%
$13.9 Billion
(1) Includes H&R’s proportionate share of equity accounted investments and excludes assets classified as held for sale.
5 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Office Portfolio
Total value: $6.0 billion (weighted average cap rate: 5.57%) Average remaining lease term to maturity: 12.4 years Occupancy: 98.6%; committed occupancy: 99.6% Revenue from tenants with investment grade ratings: 87.1%
Hess Tower | HoustonCorus Quay | Toronto310-320-330 Front St.| Toronto 2 Gotham Centre | New York
Ontario Alberta Other Subtotal
Number of properties 19 4 4 27 6 33 Square feet (in thousands) 5,367 2,607 893 8,867 1,944 10,811 Fair value (in millions) $2,296 $1,717 $228 $4,241 $1,747 $5,988
United
StatesTotal
Canada
6 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Alberta Office Portfolio
(1) Same‐asset property operating income (cash basis) includes the proportionate share of equity accounted investments and excludes straight‐lining of contractual rent and realty taxes accounted for under IFRIC 21.
(2) Ovintiv Inc. (formerly Encana Corporation) has sublet 27 floors to Cenovus Energy.
H&R’s office tenants in Alberta are some of the strongest companies in the energy sector with an average remaining lease term of 17.0 years
There are currently no vacancies in H&R’s Alberta Office Portfolio
Address
Your
location
Total GLA
(Sq.Ft.)
Ownership
Interest
GLA at
H&R's
Interest
% of H&R's
Same-Asset
Property Operating
Income
(cash basis)(1)
Remaining
Lease Term
(years) Major Tenant
S&P Tenant
Credit Rating
5th Ave. at Centre St. Calgary 2,024,182 100% 2,024,182 14.0% 18.2 Ovintiv Inc.(2) BBB Stable
450‐1st St., S.W. Calgary 931,187 50% 465,594 2.2% 11.3 TC Energy Corporation BBB+ Stable
2767‐2nd Ave. Calgary 69,793 100% 69,793 0.1% 19.2 AltaLink, L.P. A Stable
2611‐3rd Ave. Calgary 95,225 50% 47,613 0.1% 19.2 AltaLink, L.P. A Stable
Total / Average 3,120,387 2,607,182 16.4% 17.0
7 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Retail Portfolio(1)
Total value: $4.2 billion (weighted average cap rate: 6.35%) Average remaining lease term to maturity: 6.6 years Occupancy: 91.5%; committed occupancy: 94.1%
Dufferin Mall | TorontoOrchard Park | Kelowna Stone Road Mall | Guelph
Ontario Alberta Other Subtotal ECHO Other Subtotal
Number of properties 38 17 14 69 226 16 242 311
Square feet (in thousands) 3,684 3,969 2,758 10,411 2,850 218 3,068 13,479
Fair value (in millions) $1,079 $1,230 $869 $3,178 $846 $133 $979 $4,157
CanadaTotal
United States
(1) Includes H&R’s proportionate share of equity accounted investments.
8 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Retail Portfolio
(1) Generally includes tenants occupying Commercial Retail Units (“CRU”) less than 15,000 square feet.(2) Reported as if Primaris owned 100% of these enclosed shopping centres.(3) Excluding Northland Village which is slated for redevelopment.
Enclosed
Shopping
Centre
Grocery
Anchored ECHO Other Total
Number of properties 17 22 226 46 311
Square feet (in thousands) 6,988 1,007 2,850 2,634 13,479
Fair value (in millions) $2,524 $224 $846 $563 $4,157
Enclosed Shopping Centres
All Store CRU Sales (per square foot)(1) 2015 2016 2017 2018 2019
British Columbia $614 $649 $653 $668 $655
Alberta 568 530 531 520 507
Manitoba 479 511 509 515 492
Ontario 542 552 575 574 562
Québec 415 423 431 428 436
New Brunswick 523 530 516 517 506
Total(2)(3) $539 $538 $545 $544 $532
CRU square feet (in thousands) 2,483 2,412 2,411 2,381 2,303
9 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Industrial Portfolio(1)
Total value: $1.0 billion (weighted average cap rate: 5.59%) Average remaining lease term to maturity: 6.7 years Occupancy: 97.2%; committed occupancy: 98.9%
Sleep Country | GTACanadian Tire | GTA(1) Includes H&R’s proportionate share of equity accounted investments and excludes
one property which was classified as held for sale as at December 31, 2019.
H&R has a 50% ownership interest in 79 of the 87 properties through a joint venture partnership with PSP Investment Board and Crestpoint Real Estate Investments Ltd.
Ontario Alberta Other Subtotal
Number of properties 35 19 28 82 4 86
Square feet (in thousands) 4,462 2,030 1,648 8,140 673 8,813
Fair value (in millions) $581 $254 $163 $998 $42 $1,040
Canada United
StatesTotal
10 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
144 Acres of Industrial Land – Caledon, ON To develop 2.7 million square feet
Currently three buildings under construction
Subsequent to December 31, 2019, H&R completed a 10‐year lease with Deutsche Post AG to occupy Building 1
Number of
Acres
Square
Feet
Total
Development
Budget
Properties
Under
Development
Costs
Remaining
to Complete
Expected
Yield
on Cost
Expected
Completion
Date
Building 1 16.8 342,821 $54,564 $24,373 $30,191 6.7% Q3 2020
Building 2 4.7 77,875 13,471 4,934 8,537 5.4% Q4 2020
Building 3 4.9 105,133 14,960 5,083 9,877 6.5% Q4 2020
Remaining lands 117.6 ‐ ‐ 70,601 ‐
Total 144.0 525,829 $82,995 $104,991 $48,605
11 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Residential Portfolio(1)
Total value: U.S. $2.1 Billion (weighted average cap rate: 4.75%)
Average age of properties: 6.4 years
During the year ended December 31, 2019, there were five properties (excluding Jackson Park) in lease‐up with a weighted average occupancy rate of 81.9%. For the three months and year ended December 31, 2019, the properties in lease‐up contributed U.S. $2.8 million and U.S. $8.7 million, respectively, to property operating income (excluding non‐cash items) and they are expected to contribute U.S. $13.5 million in 2020.
Brandon Crossroads | Florida
Ambrosio | Texas
(1) Includes H&R’s proportionate share of equity accounted investments and excludes two properties which were classified as held for sale as at December 31, 2019 and subsequently sold.
Texas FloridaNorth
CarolinaNew York Total
Number of properties 9 7 5 1 22
Number of residential rental units 2,776 2,433 1,632 936 7,777
Fair value (in millions of U.S. dollars) $424 $512 $360 $800 $2,096
12 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Strategy is to acquire or develop class A properties in U.S. Sun Belt cities where there is strong population and employment growth and to develop properties with partners in Gateway cities
13 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Acquired June 13, 2019
Class A units: 314
Year built: 2018
Occupancy upon acquisition: 94.3%
Purchase price: U.S. $74,732,000
Purchase price/unit: $238,000
Average rent: U.S. $1,571 per month
Rationale: New construction located in Orlando’s coveted I‐4 Tourism Corridor that is anchored by major employers and a $50B tourism industry.
2019 Acquisition: Lantower Grande Flats – Orlando, FL
14 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Acquired July 31, 2019
Class A units: 322
Year built: 2019
Occupancy upon acquisition: 47.2%
Purchase price: U.S. $62,790,000
Purchase price/unit: $195,000
Average rent: U.S. $1,357 per month
Rationale: New construction located near a major Charlotte employment center, University City (3 business parks with 75k jobs & UNC‐Charlotte).
2019 Acquisition: Lantower Garrison Park – Charlotte, NC
15 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Jackson Park ‐ Long Island City, NY
RESIDENTIAL DEVELOPMENT
Location
28-10, 28-30, 28-40 Jackson Ave.,
Long Island City, New York
# of units 1,871
Ownership interest 50%
% occupied 96.0%
Current avg. rent $67 psf
16 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Jackson Park ‐ Long Island City, NY
In September 2019, H&R, together with its partners, secured a U.S. $1.0 billion interest-only first mortgage for Jackson Park (U.S. $500.0 million, at H&R’s ownership interest) at a fixed rate of 3.25% for a 10-year term. Upon closing, Jackson Park’s existing U.S. $640.0 million construction facility was discharged and the outstanding balance prior to this refinancing was repaid.
Jackson Park’s annualized unlevered yield on budgeted cost is expected to be 6.0%.
With the new financing in place, the REIT’s levered yield on its expected net cash contribution of U.S. $30.8 million to Jackson Park is approximately 50.4%
Q1 Q2 Q3 Q4 YTD Annual
Actual 2019 and Projected 2020 Net Income and FFO 2019 2019 2019 2019 2019 2020
(At H&R's ownership interest) (Actual) (Actual) (Actual) (Actual) (Actual) (Projected)
(in thousands of U.S. Dollars)
Property operating income $4,464 $6,519 $7,075 $7,035 $25,093 $32,000
Bank interest and charges (2,566) (2,980) (3,206) (4,185) (12,937) (16,476)
Effective interest rate accretion (542) (542) (542) (736) (2,362) (775)
Fair value adjustment on financial instruments and real estate assets (1,118) (2,600) (19,105) 12,596 (10,227) ‐
Net income (loss) 238 397 (15,778) 14,710 (433) 14,749
Fair value adjustment on financial instruments and real estate assets 1,118 2,600 19,105 (12,596) 10,227 ‐
Notional interest capitalization 283 72 ‐ ‐ 355 ‐
FFO $1,639 $3,069 $3,327 $2,114 $10,149 $14,749
17 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
U.S. Properties Under Development
(1) Mixed use development consisting of 528 residential rental units, approximately 373,000 square of retail space and 118,000 square feet of office space.(2) 35‐storey residential tower consisting of 315 luxury residential rental units and 6,450 square feet of retail.(3) Acquired a leasehold interest to develop up to 670 residential rental units. Located within the heart of the I‐4 Tourism Corridor in Orlando and the site is a seven‐minute drive
from Walt Disney World. Construction of Phase 1 is expected to commence in Q1 2020 which will consist of 321 residential rental units.(4) Excludes the right‐of‐use asset, which is a leasehold interest measured at an amount equal to the corresponding lease liability of U.S. $24.6 million.(5) Total project spans 38.4 acres. Construction commenced in June 2018 on Phase 1 of this project which will consist of 172 residential rental units and 13,979 square feet of retail.
Construction commenced in March 2019 on Phase 2 of this project which will consist of 232 residential rental units. Future phases will be announced as further development information becomes available.
(6) 383 residential rental units. Close to major technology employers including Apple, IBM, Oracle and Samsung as well as the University of Texas at Austin and downtown Austin. (7) 7‐storey residential tower consisting of 263 residential rental units. Part of a larger master planned community and is adjacent to transit, Microsoft, Inc.’s headquarters, and future
light rail which is expected to be completed in 2023.(8) Development budget metrics have not been determined as at December 31, 2019.
(in thousands of U.S. Dollars)
At H&R Ownership Interest
Development Name
Ownership
Interest
Number
of Acres
Total
Development
Budget
Properties Under
Development
Costs
Remaining to
Complete
Expected
Yield
on Cost
Expected
Completion
Date
Current Developments:
River Landing, Miami, FL(1)
100.0% 8.1 $467,860 $367,008 $100,852 5.3% Q2 2020
Shoreline, Long Beach, CA(2)
31.2% 0.9 71,097 24,690 46,407 6.2% Q2 2021
Sunrise (Phase 1), Orlando, FL(3)(4)
100.0% 11.6 61,826 2,376 59,450 6.1% Q4 2021
Hercules Project (Phase 1), Hercules, CA(5)
31.7% 2.2 26,041 19,424 6,617 6.5% Q2 2020
Hercules Project (Phase 2), Hercules, CA(5)
31.7% 2.8 31,186 11,190 19,996 6.6% Q1 2021
The Pearl, Austin, TX(6)
33.3% 5.0 23,201 13,189 10,012 6.2% Q3 2020
Esterra Park, Seattle, WA(7)
33.3% 1.1 31,859 15,058 16,801 6.0% Q1 2021
31.7 $713,070 $452,935 $260,135
Future Developments:
Prosper, Dallas, TX(8)
100.0% 20.3 15,120
2214 Bryan St., Dallas, TX(8)
100.0% 3.3 23,616
Pinellas, Tampa, FL(8)
100.0% 8.4 6,287
Sunrise (Phase 2), Orlando, FL(3)(4)(8)
100.0% 12.4 350
Hercules Project (Remaining Phases), Hercules, CA(5)(8)
31.7% 33.4 11,393
Total per the REIT's Proportionate Share (excluding ECHO) 109.5 $713,070 $509,701 $260,135
18 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
River Landing ‐ Miami, FL
Prime urban mixed-use development 528 residential rental units 373,000 sf of urban retail 118,000 sf of office
19 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
River Landing ‐ Miami, FL
1,000 feet of waterfront on the Miami river
Adjacent to the Health District
Close proximity to downtown Miami
Major tenants: Publix, TJ Maxx, Hobby Lobby, Burlington, Ross, Old Navy
Total cost of project: U.S. $467.9M
U.S. $367.0M cost spent at December 31, 2019
Construction is expected to be completed in Q2 2020
Unlevered return on cost: 5.3%
20 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Shoreline Gateway ‐ Long Beach, CA
Land acquired July 16, 2018
H&R ownership: 31.2%
35-storey residential tower consisting of 315 residential rental units
6,450 sf of retail space
Development budget: U.S. $227.1M at 100% level
Construction financing: U.S. $132.0M secured at 100% level
Will become the tallest residential tower in Long Beach with views overlooking the Pacific Ocean
21 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Sunrise ‐ Orlando, FL
H&R ownership: 100%
Acquired a leasehold interest to develop up to 670 residential rental units
Located within the heart of the I-4 Tourism Corridor in Orlando and the site is a seven-minute drive from Walt Disney World
Construction of Phase 1 is excepted to commence in Q1 2020 which will consist of 321 residential rental units
22 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Hercules Bayfront ‐ San Francisco, CA
H&R ownership: 31.7%
38.4 acres of land to be developed into a waterfront master planned community which will be surrounded by a future intermodal transit centre
Phase 1 known as “The Exchange at Bayfront” will consist of 172 residential rental units including lofts and townhomes and 13,979 square feet of ground level retail
Phase 1 has a total development budget of U.S. $82.1M and construction financing of U.S. $57.5M has been secured, both at 100% level
Phase 1 is expected to be completed in Q2 2020
23 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Hercules Bayfront ‐ San Francisco, CA
Phase 2, known as “The Grand at Bayfront” will consist of 232 residential rental units including a state-of-the-art fitness centre, bike shop, residents lounge and sporting club
Phase 2 has a total development budget of U.S. $98.4 million and construction financing of U.S. $65.4 million has been secured, both at the 100% level
Phase 2 is expected to be completed in Q1 2021
24 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
The Pearl ‐ Austin, TX
H&R ownership: 33.3%
383 residential rental units
Development budget: U.S. $69.7M and construction financing of U.S. $47.9M has been secured, both at 100% level
Expected to be completed in Q3 2020
This residential development site is close to major technology employers including Apple, IBM, Oracle and Samsung, as well as the University of Texas at Austin and downtown Austin
25 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Esterra Park ‐ Seattle, WA
This residential development site is part of a larger master planned community and is adjacent to Microsoft, Inc.’s headquarters, bus transit and future light rail which is expected to be completed in 2023
H&R ownership: 33.3%
263 residential rental units
Development budget: U.S. $95.7M and construction financing of U.S. $66.5M has been secured, both at 100% level
Expected to be completed in Q1 2021
26 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Future Intensification Opportunities
Office Opportunities: 3777 Kingsway Street, Burnaby, BC 145 Wellington Street W., Toronto, ON 55 Yonge Street, Toronto, ON 310-320-330 Front Street W., Toronto, ON
Retail Opportunities: Dufferin Mall, Toronto, ON Grant Park, Winnipeg, MB Kildonan Place, Winnipeg, MB Northland Village, Calgary, AB Orchard Park Shopping Centre, Kelowna, BC Place d’Orleans, Orleans, ON Sunridge Mall, Calgary, AB
27 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Top 15 Tenants by Revenue
Predictable and stable income from long-term leases with high quality investment grade tenants
(1) Includes the proportionate share of equity accounted investments.(2) The percentage of rentals from investment properties is based on estimated annualized gross revenue excluding straight‐lining of contractual rent, rent amortization of tenant inducements and
capital expenditure recoveries.(3) Average lease term to maturity is based on net rent.(4) Ovintiv Inc. has sublet 27 floors to Cenovus Energy at The Bow located in Calgary, AB. Ovintiv Inc.’s lease obligations expire on May 13, 2038.(5) Canadian Tire Corporation includes Canadian Tire, Mark’s, Sport Chek, Atmosphere and Sports Experts. (6) Lowe’s Companies, Inc. includes Rona.(7) Loblaw Companies Limited includes Loblaw, No Frills and Shoppers Drug Mart.(8) Due to the confidentiality under the tenant’s lease, the term is not disclosed.
(1)
Tenant
% of rental income
from investment
properties(2)
Number of
locations
H&R owned
sq.ft. (in 000’s)
Average lease
term to maturity
(years)(3)
Credit Ratings
(S&P)
Ovintiv Inc.(4)
(formerly Encana Corporation) 11.7% 1 1,997 18.4 BBB Stable
Bell Canada 8.1 23 2,537 14.8 BBB+ Stable
Hess Corporation 5.4 1 845 (8) BBB‐ Stable
New York City Department of Health 3.8 1 660 10.9 AA Stable
Giant Eagle, Inc. 3.4 190 1,652 11.3 Not Rated
Canadian Tire Corporation(5) 2.8 20 2,659 6.9 BBB+ Stable
TC Energy Corporation 1.9 1 466 11.3 BBB+ Stable
Lowe's Companies, Inc.(6) 1.8 14 1,710 11.8 BBB+ Stable
Corus Entertainment Inc. 1.7 1 472 13.2 BB Negative
Telus Communications 1.3 17 357 6.0 BBB+ Negative
Shell Oil Products 1.2 16 209 2.7 AA‐ Stable
Public Works and Government Services, Canada 1.1 5 342 4.5 AAA Stable
Toronto-Dominion Bank 1.0 7 286 7.3 AA‐ Stable
Loblaw Companies Limited(7) 0.9 19 273 8.8 BBB Stable
Royal Bank of Canada 0.9 5 247 5.4 AA‐ Stable
47.0% 321 14,712 12.0
28 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
191 160 277 685 454
2020 2021 2022 2023 2024
Industrial
Retail
Office
Limited Lease Rollover
(1) Includes the proportionate share of equity accounted investments and excludes residential properties.
Low‐risk rollover schedule Well diversified by property and geography Average remaining lease term of 9.6 years, one of the longest in the industry
% of the REIT‘s GLA 4% 5% 6% 3% 7%
Canadian Portfolio(in ‘000s sq.ft.)
U.S. Portfolio(in ‘000s sq.ft.)
% of the REIT’s GLA 1% <1% 1% 2% 1%
(1)
1,374 1,610
2,087
981
2,258
2020 2021 2022 2023 2024
Industrial
Retail
Office
29 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Strong Balance Sheet
(1) Debt includes mortgages payable, debentures payable, unsecured term loans and lines of credit.
Interest Coverage
3.0x
BBB (High) Stable Trend by
DBRS
Unencumbered Assets $4.0B
WAIR(1)
3.8%WATM(1)
3.9 years
Available under Lines of Credit
$291M
Mortgages 26%
Unsecured Debentures 9%
Unsecured Term Loans 5%
Lines of Credit6%
Unitholders' Equity and Exchangeable
Units 54%
Total Capitalization$13.7 Billion
Debt(1) to Total Assets
30 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE
Summary
One of the largest REITs in Canada with a market cap of $6.4B
High quality real estate
Predictable income Creditworthy tenants
Long‐term leases, with contractual rent escalations
High, stable occupancy
Minimal near term lease expiries and debt maturities
Development pipeline expected to create significant value and enhance cash flows
Solid balance sheet with a conservative payout ratio
Fully internalized and aligned management
CEO, founders and trustees own approximately6% of the REIT (including exchangeable units)
NAV per unit is $25.79(1)
Average annual return to unitholders since inception of 13%
(1) Refer to the December 31, 2019 MD&A for a detailed calculation.