INFINITE POSSIBILITIES… INVESTOR PRESENTATION Q3 2019
NOTICE TO READER Readers are cautioned that certain terms used in this Investor Presentation (“Presentation”) such as Funds from Operations ("FFO"), Adjusted Cashflow from Operations ("ACFO"), "Gross Book Value", "Payout Ratio", "Interest Coverage", "Total Debt to Adjusted EBITDA" and any related per Unit amounts used by management to measure, compare and explain the operating results and financial performance of the Trust do not have any standardized meaning prescribed under IFRS and, therefore, should not be construed as alternatives to net income or cash flow from operating activities calculated in accordance with IFRS. These terms are defined in this Presentation and reconciled to the consolidated financial information of the Trust in the Management’s Discussion and Analysis (“MD&A”) for the three months ended September 30, 2019. Such terms do not have a standardized meaning prescribed by IFRS and may not be comparable to similarly titled measures presented by other publicly traded entities. Certain statements in this Presentation are "forward-looking statements" that reflect management's expectations regarding the Trust's future growth, results of operations, performance and business prospects and opportunities. More specifically, certain statements contained in this Presentation, including statements related to the Trust's maintenance of productive capacity, estimated future development plans and costs, view of term mortgage renewals including rates and upfinancing amounts, timing of future payments of obligations, intentions to secure additional financing and potential financing sources, and vacancy and leasing assumptions, and statements that contain words such as "could", "should", "can", "anticipate", "expect", "believe", "will", "may" and similar expressions and statements relating to matters that are not historical facts, constitute "forward-looking statements". These forward-looking statements are presented for the purpose of assisting the Trust's Unitholders and financial analysts in understanding the Trust's operating environment, and may not be appropriate for other purposes. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. However, such forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Although the forward-looking statements contained in this Presentation are based on what management believes to be reasonable assumptions, the Trust cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. These forward-looking statements are made as at the date of this Presentation and the Trust assumes no obligation to update or revise them to reflect new events or circumstances unless otherwise required by applicable securities legislation. SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION 2
CONTENTS ▪ Overview Page 4 ▪ Intensification & Development Page 6 ▪ Featured Initiatives Page 19 ▪ Retail Portfolio Page 62 ▪ Financial Highlights Page 69 SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION 3
OUR EV EVOL OLUTION UTION CONTINUES CONTINUES … 1999 1999 2014 2014 1989-1994 1989 1994 2003 2003 WALMART PENGUIN PICKUP MITCHELL GOLDHAR FIRST TRANSACTION JOINT VENTURE CONCEPT IS HELPS BRING WITH CALLOWAY REIT WITH SMARTCENTRES INTRODUCED WALMARTTO CANADA (CWT ASSETS $100M CAD) (WMT SALES $21B USD) Canada 2015 2015 2016 2016 2018 2018 CALLOWAY REIT SMARTCENTRES SMARTCENTRES FORMS JV PARTNERSHIPS ACQUIRES STRATEGIC FOCUS SMARTCENTRES EXTENDS TO MIXED USE SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION
ON OUR JOURNEY OF INFIN INFINITE PO ITE POSSIBILITIES SSIBILITIES 34.4M SF income producing retail portfolio $9.7B dynamic real estate portfolio value 94 properties on which intensification opportunities have been identified 256 individual development projects (59.3M SF of density. REIT share 27.9M SF) An individual development project is a single apartment, office, seniors’ residence, self -storage facility, hotel, condo or townhouse project 5 SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION
BEST POSITIONED FOR INTE INTENSIFI NSIFICA CATION TION BEST BEST POR PORTF TFOLIO OLIO IN IN T THE HE CO COUN UNTR TRY EASY ACCESS FLEXIBLE STRUCTURES MAJOR INTERSECTIONS ONLY 25% COVERAGE TRANSIT CONNECTIVITY 2,775 UNBUILT ACRES STRONG TENANT RELATIONSHIPS 6 SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION
BEST POSITIONED FOR INTE INTENSIFI NSIFICA CATION TION DEVELOPMENT DEVELOPMENT THIS TEAM 86% 86% 155 155 60M 60M IN OUR DNA TEAM OF DEVELOPED SF SF DEVELOPED IN-HOUSE RESOURCES OF OUR CURRENT SINCE 1989 FOCUSED ON RETAIL AREA INTENSIFICATION PLANNERS / DEVELOPERS • ENGINEERS • GOVERNMENT RELATIONS • LEASING • ENVIRONMENTAL / GEOTECH SPECIALISTS • CONSTRUCTION • ARCHITECTS • LAWYERS • FINANCE / FINANCIAL ANALYSTS • MARKETING 7 SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION
$9.7B IN REAL ESTATE ASSETS + $12.1 12.1B IN PLANNED INTENSIFICATION (REIT SHARE $5.5B) 8 SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION
94 PROPERTIES IDENTIFIED FOR INTENSIFICA INTENSIFICATION TION … BRITISH COLUMBIA ALBERTA SASKATCHEWAN MANITOBA ONTARIO QUEBEC ATLANTIC TOTAL 20 6 3 2 2 61 0 94 MARKED FOR INTENSIFICATION 3 63 8 4 3 1 34 10 UNDER REVIEW FOR INTENSIFICATION 157 23 TOTAL 14 7 5 3 95 10 PROPERTIES …AND MORE TO COME 9 SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION
DEVELOPMENT STATUS 256 INDIVIDUAL DEVELOPMENT PROJECTS ACROSS 94 PROPERTIES S ELF-STORAGE (48) O FFICE BUILDINGS (10) RECURRING RECURRING TOTAL NON-RETAIL NON- PROJECT (SOSHAL) RECURRING COUNT 196 + 60 = 256 A PARTMENTS L IVING (88) ( 7 7 % ) ( 2 3 % ) ( 1 0 0 % ) S ENIORS (45) H OTELS (5) CONDOS (46) SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION TOWNHOUSES (14) 10
256 DEVELOPMENT PROJECTS 34 34 71 71 151 151 256 256 UNDERWAY ACTIVE FUTURE TOTAL CONSTRUCTION INITIATION (YEARS) 1 2 6+ 3 5 4 PLANNING 33 33 32 32 74 74 139 139 ENTITLEMENTS(#) 59,300,000 13,300,000 14,000,000 32,000,000 1 2 3 4 5 PROJECT SF REIT SHARE 27,900,000 6,000,000 6,400,000 15,500,000 POTENTIAL VALUE $3,446,800,000 $995,100,000 $667,800,000 $1,783,900,000 CREATION ($) $473,200,000 $199,400,000 $705,100,000 $1,377,700,000 REIT SHARE 11 SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION
VALUE CREATION $3.0B POTENTIAL VALUE CREATION $3.6B TO FROM THE 256 INTENSIFICATION PROJECTS REIT SHARE: $1.3B-$1.5B 12 SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION
VALUE CREATION EXAMPLE 19 1900 00 EGLINT EGLINTON ON AVE VE E 28 ACRES ∙ 380,000 SF 13 SMARTCENTRES REIT | Q3 2019 INVESTOR PRESENTATION
VALUE CREATION EXAMPLE 19 1900 00 EGLINT EGLINTON ON AVE VE E PLANNING ENTITLEMENTS FOR 5.3 MILLION SF (INCL. 14 TOWERS > 20 STORIES) FULL 20-YEAR BUILD-OUT WOULD YIELD $250M IN POTENTIAL VALUE ABOVE THE CURRENT IFRS VALUE.
VALUE CREATION EXAMPLE 19 1900 00 EGLINT EGLINTON ON AVE VE E PHASE 1: 2 APARTMENTS POTENTIAL VALUE CREATION: $7 MILLION ONLY PHASE 1 OF THIS REDEVELOPMENT IS INCLUDED IN TOTAL PROJECT COUNT (256) & POTENTIAL VALUE CREATION ($3.0B - $3.6B) CALCULATIONS.
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