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* This marketing material relate to the distribution of units of the InvestPlus Real Estate Investment Trust under an offering memorandum and is incorporated into and form part of the offering memorandum1 * Th is marketing material relate to the distribution of units of - - PowerPoint PPT Presentation
1 * Th is marketing material relate to the distribution of units of - - PowerPoint PPT Presentation
1 * Th is marketing material relate to the distribution of units of the InvestPlus Real Estate Investment Trust under an offering memorandum and is incorporated into and form part of the offering memorandu m Disclaimer The information contained
Disclaimer
The information contained herein is proprietary and strictly confidential. It is intended to be reviewed
- nly by the party receiving it from InvestPlus ● (the “Company”) and should not be made available to
any other person or entity without the written consent of the Company. The material contained herein is for information purposes only and does not constitute an offer to sell nor a solicitation of an offer to buy the securities. An offer can only be made by the Offering Memorandum and the appropriate exemption documents being provided to prospective purchasers. This information is inherently limited in scope and does not contain all of the applicable terms, conditions, limitations and exclusions of the investments described herein. Prospective purchasers should read the Offering Memorandum before considering investment in this project. This material is in no way a complete description of the proposed investment and is in all respects subject to the provisions of the Offering Memorandum and the Declaration of Trust . The information contained herein is not to be relied upon; investors should rely on the information described in the Offering Memorandum. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, expressed or implied, may be made as to the accuracy or reliability of the information contained herein. The only representations and warranties made by the Company would be those contained in an Offering Memorandum and a definitive subscription agreement. The InvestPlus Real Estate Investment Trust. intends to make regular distributions of its available cash to Unitholder, such distributions may be reduced or suspended and are not guaranteed. These offerings may be subject to potential risks associated with the investment, including market, liquidity and investment return risk. Please consult the offering documents for further information regarding these potential risks. Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remain the same even if the value of the securities purchased declines. In order to be eligible for subscription in this Offering, individuals must satisfy the criteria required for investors as described in the Offering Memorandum.
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History
- Based in Calgary, Alberta
- Incorporated in 2004
- Acquired MF & Commercial properties through Joint Ventures
& LPs
- Restructured into private InvestPlus REIT (IPR) in 2015
- Provides an opportunity
to invest in a diversified portfolio of multi-unit residential apartment and commercial buildings in western Canada
3 The York – 45 Suites
InvestPlus Transaction History
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✓ 18 buildings ✓ 420 Rental suites ✓ 100,000 SF Commercial ✓ Over 250 Investors ✓ Transacted over $80M in assets ✓ Current assets in BC, AB & SK
The Luxemburg – 23 Suites + 7,000 sq-ft commercial
InvestPlus REIT Portfolio
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✓ $35.2mm in Assets ✓ 8 buildings ✓ 161Rental Units ✓ 64,000 Sq-ft Commercial ✓ 60/40 split MF to Commercial
Calgary (2 properties) Edmonton ( 4 properties) Prince George (1 property ) Saskatoon (1 property)
SINCE THE INCEPTION OF REIT
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Recent Purchase
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- Purchase Dec 2015:
$2,800,000
- Lease Expiry:
December 2025
- Value Jan 1, 2019:
$3,500,000
- Triple-Net Lease
- Accretive – Additional free cash flow of
$31,600/year after distributions, debt, expenses and debt repayment based on current rents
The Brunswick – 13,704 sq-ft Prince George, BC
Recent Purchase
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- 17,900 sq-ft of commercial space, south
- f Calgary
- Purchased Aug 8, 2017: $3,63M
- 5-years left on lease
- Valued Jan 1 2019: $3,850,000
- Triple-net lease
- Accretive – Additional free cash flow of
$19,500/year after distributions, debt, expenses and debt repayment based on current rents
Recent Purchase
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- 30,000 SF of prime commercial space in SK
- Purchased Oct 10, 2017: $3.35M
- Valued Jan 1 2019: $3,600,000
- National tenants
- Accretive – Additional free cash flow of
$33,250/year after distributions, debt, expenses and debt repayment based on current rents
Target and acquire accretive Commercial and Multi-family properties where other public or private REITs don’t exploit due to size, lack of local presence or criteria.
Strategy
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FOCUSSED ON AN ASSET ALMOST INDEPENDENT OF THE MARKET
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Industrial
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Why are we focussed on Industrial
- The rise of both:
–Cannabis –E-Commerce
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Why are we focussed on Industrial & commercial – E-Commerce
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Canada is trending right behind the US at about 8%.
Why are we focussed on Industrial & commercial – E-Commerce
- The rising popularity of online retail is driving an unprecedented need for more industrial space for
distribution and return centers across Canada. As one interviewee noted, “Industrial is the new retail.” The sector is seeing significant rental increases for the first time in years, and it’s expected that demand will exceed supply for the next few years.
- PWC – Emerging Trends in Real Estate 2019
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Calgary Industrial Fundamentals
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Net absorption suggests vacancies dropping and rates increasing pushing values up.
Saskatoon Industrial Fundamentals
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Like Calgary, net absorption suggests vacancies dropping and rates increasing pushing values up.
Source: Colliers International – Q3 Report
Winnipeg Industrial Fundamentals
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ASSETS UNDER CONSIDERATION
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Assets Under Consideration
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Province: BC Asset Type: Industrial Building Features SF: 38,000 Roof: New Ceiling Height 16’-18’ Purchase: $3.5M Cap Rate:
7%
Assets Under Consideration
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Province: SK Asset Type: Industrial/ Retail Long-Term Lease back Building Features SF: 24,000 with 15.5 Acres Building Condition: Newer Purchase: $9,97M Cap Rate:
7%+
Assets Under Consideration
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Province: AB Asset Type: Industrial/ Retail Long-Term Lease Building Features SF: 154,275 SF Access: Highway 16 & Anthony Henday Purchase: $19,6M Cap Rate:
6.5% to 7%
ALBERTA’S REAL ESTATE CYCLE
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24 Demographic Drivers
- 1. Employment Trends/Job Creation
- 2a. Net Migration/Population Shifts
- 2b. Population Age
- 3. Vacancy Rates
- 4. Housing Construction/Starts
- 5. Critical Infrastructure Expansion
- 6. Transportation Improvements
7 . The Real Estate Ripple Effect
Financial Drivers
- 1. ROI/Cash Flow Trend
- 2. Average Rent Trend
- 3. Property Taxes
- 4. Average Income Trend
- 3. Inflation
- 5. Gross Domestic Product (GDP)
- 6. More than One Employer in Region
- 7. Affordability Index
Emotional Drivers
- 1. Number of Days on the Market
- 2. Areas of Gentrification and
Revitalization
- 3. Number of new listings/ month
- 4. Number of sales/ month
The Offering
Target Yield 2019:
6.25% Annual distributions paid quarterly
Capital Appreciation: The growth of the unit values are tied to the value of all assets owned by the
- REIT. There is a potential for appreciation.
DRIP: Distribution Reinvestment Plan available for all Classes and it earns an additional 3% bonus on distributions Liquidity: Quarterly Redemptions
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The Offering
Minimum Investment: $ 25,000 Tax deferred Plans: RRSP, RESP, RRIF, LIRA & TFSA Securities Offered: Class A & F Trust units Offering: $10,000,000 Offering Bases: Available by Offering Memorandum in compliance with NI 45-106
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InvestPlus REIT Advantage
Favorable Timing
Low interest rates, attractive cap rates and anticipated economic up-turn in core target markets
Distributions Quarterly Distributions Diversified Portfolio
Current Assets are located in BC, Alberta and Saskatchewan
Existing Asset Base
REIT has an asset base of $35.2 mm.
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InvestPlus REIT Advantage
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Solid Track Record
20-year track record and 75 years of cumulative management experience
Corporate Governance
Experienced management team and Independent Board of Trustees.
InvestPlus REIT Apartments
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InvestPlus REIT Commercial
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Thank You
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Tel: (403) 663.8772 Toll Free: 1.877.663.8772 E-mail: info@investplusreit.com
For Further Information, Please Contact:
Notes
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1. Please refer to the Offering Memorandum with respect to the redemption terms and Quarterly Limit. There may be redemption penalties depending on the duration of the investment with InvestPlus REIT. 2. The total assets for the portfolio is as of Dec 31, 2018. As our business is to acquire, manage and sometimes divest of multi-family and commercial buildings, total assets under management may change from time to time depending on what assets fit our core mandate vs those that don’t. Please contact your investment advisor for more information 3. The estimated free cash flow is based on a distribution of $0.50/unit at a $8.00/unit value. 4. The target distribution is based on a certain amount of acquisition (Est. $30M) at a minimum 6.75% cap rates and deployment of $10M in equity into accretive asset
DISCLAIMER IMPORTANT INFORMATION: This communication is for information purposes only and is not, and under no circumstances is to be construed as, an invitation to make an
investment in InvestPlus REIT. Investing in the InvestPlus REIT Units involves risks. There is currently no secondary market through which the InvestPlus REIT Units may be sold and there can be no assurance that any such market will develop. A return on an investment in InvestPlus REIT Units is not comparable to the return on an investment in a fixed-income security. The recovery of an initial investment is at risk, and the anticipated return on such an investment is based on many performance assumptions. Although InvestPlus REIT intends to make regular distributions of its available cash to Unitholders, such distributions may be reduced or suspended. The actual amount distributed will depend on numerous factors, including InvestPlus REIT’s financial performance, debt covenants and obligations, interest rates, working capital requirements and future capital requirements. In addition, the market value of the InvestPlus REIT Units may decline if InvestPlus REIT is unable to meet its cash distribution targets in the future, and that decline may be material. It is important for an investor to consider the particular risk factors that may affect the industry in which it is investing and therefore the stability of the distributions that it receives. There can be no assurance that income tax laws and the treatment of mutual fund trusts will not be changed in a manner which adversely affects InvestPlus REIT.
PAST PERFORMANCE MAY NOT BE REPEATED. Investing in InvestPlus REIT Units can involve significant risks and the value of an investment may go down as well as up .There is no
guarantee of performance. An investment in a InvestPlus REIT is not intended as a complete investment program and should only be made after consultation with independent investment and tax advisors. Only investors who do not require immediate liquidity of their investment should consider a potential purchase of Units. The risks involved in this type of investment may be greater than those normally associated with other types of investments. Please refer to the InvestPlus REIT Offering Memorandum for a further discussion.