August 2016 165 Ontario Street, St. Catharines, ON Diversified National Platform Positioned for Continued Profitable Growth 120 Dundas Street East, Mississauga, ON Azure, Fort St. John, BC Cobble Hill, Airdrie, AB
Disclaimer This presentation may contain forward-looking information. All information included in this presentation other than statements of historical fact, is forward-looking information. When used in this presentation, words “expect”, “estimate”, “project”, “potential” or other similar expressions identify forward-looking information. The forward-looking information included in this presentation relates to, among other things, current expectations of future results, performance, prospects and opportunities, including with respect to the benefits of the acquisition of True North Apartment REIT and properties from affiliates of Starlight Investments Ltd. and affiliates of the Public Sector Pension Investment Board, growth opportunities, payout ratio, market capitalization, mitigation of impact of commodity prices, population growth, results from the high-end renovation program, above guideline increases, opportunities to increase below market rents, results from the sub-metering program, cost savings from management internalization, development and acquisition opportunities, and debt management. This presentation reflects Northview’s current beliefs and is based on information currently available to senior management. Forward-looking information is provided for the purpose of presenting information about senior management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. This information is not a guarantee of future performance and is based on Northview’s estimates and assumptions, which include, but are not limited to market growth, the general economy, interest rates and real estate conditions are each stable, occupancy rates, results of operations, performance, prospects and opportunities. The forward-looking information is subject to a variety of known and unknown risks and uncertainties, which could cause actual events, results and performance to differ materially from the forward-looking information. Such risks and uncertainties include, but are not limited to, availability of cash flow, risks of unexpected operating results, risks of investment in and development of real property, competition, financing and refinancing risks, changes in economic conditions, changes in interest rates, changes in taxation rules, reliance on key personnel, environmental matters, tenant risks, fluctuations in commodity prices and other risk factors. Northview cautions that this list of factors is not exhaustive. Although the forward-looking information contained in this presentation is based on what Northview believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information. The forward-looking information is provided only as of the date of such information, and Northview, except as required by applicable law, assumes no obligation to update or revise this information to reflect new information or the occurrence of future events or circumstances. Certain measures contained in this presentation do not have any standardized meaning as prescribed by International Financial Reporting Standards (“IFRS”) and, therefore, are considered non-GAAP measures. These measures are provided to enhance the reader's overall understanding of financial conditions. They are included to provide investors and management with an alternative method for assessing operating results in a manner that is focused on the performance of operations and to provide a more consistent basis for comparison between periods. These measures include widely accepted measures of performance for Canadian real estate investment trusts; however, the measures are not defined by IFRS. In addition, these measures are subject to the interpretation of definitions by the preparers of financial statements and may not be applied consistently between real estate entities. Please refer to Northview’s Second Quarter 2016 Management's Discussion & Analysis for definitions of non-GAAP measures and additional GAAP measures, including NOI, FFO, debt to gross book value, and interest coverage. 2
Content Overview Page Investment Highlights 4 2015 Transaction Overview 9 2016 Strategic Objectives 11 Execution of Strategic Value Creation Initiatives 12 Growth Opportunities 16 Financial Metrics 20 Portfolio Overview 24 3
Investment Highlights TSX Symbol: NVU.UN For Investors Seeking Sustainable Yield and Growth • One of Canada’s largest multi -family RElTs • Diversified national platform • Identified organic growth opportunities, development program, and acquisition pipeline • Sustainable payout ratio • History of FFO and distribution growth 4
Summary TSX Symbol: NVU.UN Key Statistics Unit Price (1) $20.25 Trust Units Outstanding (Basic) (2) 52.2 million Market Capitalization $1.1 billion Enterprise Value $3.0 billion Annual Distributions Per Trust Unit $1.63 Distribution Yield 8% FFO Payout Ratio (2)(3) 77% Estimated AFFO Multiple 2016 (4) 12.0x Multi-Family Units (2) 24,314 Commercial Square Footage (2) 1,135,000 Execusuites and Hotel Units (2) 419 (1) Closing price as at August 31, 2016. (2) Source: Q2 2016 MD&A. (3) Diluted FFO payout ratio excluding Non-recurring Items for the six months ended June 30, 2016. (4) Source: BMO REIT Beat (dated August 26, 2016). 5
Diversified National Platform Geographically diverse portfolio operating in eight provinces and two territories 24,314 Multi-family Residential Units $3.0 billion Enterprise Value Northview property portfolio Western Atlantic Northern Ontario Québec Canada Canada Canada 2,402 2,285 8,235 7,241 4,151 6
Increased Scale: New Opportunities Enhanced access to capital, increased market liquidity $7.5 $4.9 $3.2 $3.0 $1.9 $1.8 $1.3 $1.0 $1.0 CAP Boardwalk Milestone Northview Killam Morguard InterRent Mainstreet Pure Multi- TM 2 9 F E B 2 1 0 2 1 0 2 2 2 0 9 5 Apartments Residential Equity Family Enterprise Value (1) $ billions (1) Source: Closing prices as at August 31, 2016. Data provided by Scotiabank. 7
National Portfolio Insulated from regional market risk Q2 2016 YTD NOI ($ MILLIONS) Q2 2015 YTD NOI ($ MILLIONS) Québec, $0.4 Québec, $4.6 Atlantic (1%) (5%) Canada, $6.9 Atlantic (12%) Canada, $11.2 Northern Resource Northern (12%) Canada, $31.7 Canada, $26.2 Based (34%) (46%) Regions Resourced 22% Based Markets Resource Based Markets Ontario, $24.3 Other Western (27%) Canada, $22.9 Regions Resource (Resource Based Based Markets Markets $16.0) 78% Western (41%) Canada, $19.5 (Resource Based Markets $12.3) (22%) Diversified portfolio across Canada provides stability, mitigating the impact of cyclical regional economic downturns. Source: Q2 2016 Financial Statements. NOI for resource based markets excludes Non-recurring Items. 8
2015 Transaction Overview Reduced risk and created new opportunities for profitable growth Reduced inherent risk associated with NPR’s portfolio • Portfolio concentration in Northern and Western Canada • Impact of resource based markets on occupancy and rental rates On strategy • Continues geographic expansion since NPR IPO in 2002 • Consistent with core skillset of owning and managing multi-family properties across Canada Delivers continued profitable growth • NPR’s high market penetration limited opportunities • Diversification through acquiring and developing properties in markets with expanding populations and growing economies in Central and Atlantic Canada 9
Unit Price Performance Delink from Oil Correlation to oil has decreased since the 2015 Transaction Pre Deal Close (12 Months) Since Deal Close (October 30, 2015) Price Return (Base = 100) Price Return (Base = 100) 110 135 Correlation: 90.9% Correlation: 47.1% 105 125 100 115 95 9.5% 90 105 Correl.: 85 (32.3%) 95 80 75 85 (12.8%) (25.9%) 70 75 65 (33.9%) 60 65 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Northern Property WTI Crude Oil (C$) Northview WTI Crude Oil (C$) Source: Bloomberg. 10
2016 Strategic Objectives Sustaining and enhancing value creation for Unitholders 1 • Execution of Strategic Value Creation Initiatives Creating Value for Unitholders 2 • Disposition of Non-Core Assets 3 • Restructure Credit Facilities 4 Maintain Current Conservative Distribution Levels 11
Execution of Strategic Value Creation Initiatives Realizing full value across through recent acquisition portfolios Value Creation Initiative Progress Completed 116 units in Q2 2016 YTD, 72 units expected in Q3 2016. High-End Renovation Program Average rental rate increase on 98 renovated units that have been leased is $203 per unit with average return on investment of 15%. Achieved $9 per unit increase in monthly rent on the acquired portfolio Below Market Rents since January 1, 2016. Identified 7,354 units, 3,727 units have been sub-metered of which Sub-Metering Program 40% are enrolled. Received approval on 2,850 units of which 1,250 units have been Above Guideline Increases approved in 2016 at an increase of 4%, including the 2016 guideline of 2%. Property Management Internalized 7,600 units in Ontario on April 1, 2016, with plans to Internalization internalize remaining 5,150 units in 2017 (NS, NB, QC, ON). 12
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