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Investor Presentation Spring 2015 Caution Concerning Forward Looking Statements Certain information in this presentation and oral answers to questions may contain forward-looking information. Actual results could differ materially from


  1. Investor Presentation Spring 2015

  2. Caution Concerning Forward Looking Statements Certain information in this presentation and oral answers to questions may contain forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information, and certain material factors or assumptions were applied in drawing conclusions or making forecasts or projections as reflected in the forward-looking information. Additional information about the material factors and risks that could cause actual results to differ materially from the conclusions, forecasts or projections in the forward-looking information presented herein is available in Plaza Retail REIT’s regulatory filings filed on SEDAR (www.sedar.com). 2

  3. Profile Existing Portfolio 306 properties  Developer and owner of retail properties primarily in Atlantic Canada, ~ 6.7M square feet Quebec and Ontario  Strong relationships with leading retailers Development Pipeline  National tenants comprise ~90% 20 of revenue projects  15 year history of accretive growth and value creation within the REIT through ~ 703,000 square feet in-house development expertise  Competitive advantage as a developer in Atlantic Canada TSX: PLZ.UN 52-week high / low: $4.60 / $3.79 Units o/s: 92.6 million Distribution: $0.25 / unit (annualized) Insider ownership: 23% 14% Rate of Return CAGR since IPO in 1999 Recent price: $4.43 AFFO payout ratio: 79.5% Market cap: $410 million Debt to GBV (ex converts): 47.7% 3

  4. Experienced, Internalized & Aligned Management • Co-founder of the Plaza Group Over 40 years experience in real estate development, acquisitions and management Earl Brewer • • Acquired and developed over $1 billion in real estate Executive Chairman LL.B. (University of New Brunswick), Bachelor of Arts (University of New Brunswick) • Co-founder of the Plaza Group • Michael Zakuta • 30 years experience in shopping centre development, acquisitions and management Acquired and developed over $1 billion in real estate • President & CEO • LL.B. (University of Montreal), Bachelor of Commerce (McGill University) • 25 years of business experience, 15 of them in the real estate industry Formerly CFO of Charter REIT and VP, Corporate Planning & Strategy at O&Y Properties Floriana Cipollone • • Bachelor of Commerce (University of Toronto) CFO • Member of the Institute of Chartered Accountants of Ontario since 1992 • 11 years experience in shopping centre development, acquisitions and management Jamie Petrie • Former partner with Stewart McKelvey COO B.B.A. and LL.B. (University of NB), Masters in Law (Duke University) • • 12 years experience in shopping centre development, acquisitions and management Kevin Salsberg • Former COO of KEY Reit; previously with RioCan (leasing) and Trinity Development (AM) CIO • MBA (University of Ottawa), Honours BSC (University of Western Ontario) 4

  5. What Sets Us Apart Plaza focuses on per unit growth through accretive developments 1 and redevelopments. Plaza is fully internalized and able to develop new retail 2 properties in-house - Plaza does not buy finished properties from 3 rd party developers or from related parties at low cap rates. 3 Insiders hold a significant ownership position in Plaza. Plaza relies on its entrepreneurial abilities to adapt 4 to changing market conditions. Plaza locks in consistent long-term returns by financing 5 with long term debt, generally matched to lease maturities. Plaza is one of only two REITs in Canada to have increased 6 its distribution every year over the past 12 years. 5

  6. Development vs. Acquisition Description: Development Acquisition Development/Acquisition Costs: $40,000,000 $40,000,000 Return on Costs – Unlevered: 9.0% 7.0% $40 Million Development NOI Before Debt Service: $3,600,000 $2,800,000 Incremental NAV: + $11.4 million ($0.124 / unit) Market Capitalization Rates: 7.00% 7.00% Market Value: $51,428,571 $40,000,000 Cash ROI: 20.12% 1 st Mortgage L/V Ratio: 60.00% 60.00% Incremental FFO: + $2.4 million ($0.026 / unit) Loan Amount: $30,857,143 $24,000,000 Interest Rate: 4.00% 4.00% Amortization: 30 years 30 years Annual Debt Service $1,760,778 $1,369,494 $40 Million Acquisition Investment Required: $9,142,857 $16,000,000 Cash Flow: $1,839,222 $1,430,506 Incremental NAV: Nil Cash Return on Investment: 20.12% 8.94% Cash ROI: 8.9% FFO: $2,365,714 $1,840,000 Incremental FFO: + $1.8 million ($0.020 / unit) FFO Return on Investment: 25.88% 11.50% Incremental FFO Per Unit (cents): 2.57 2.00 Incremental NAV Created: $11,428,571 $0 Incremental NAV as a % of Cost: 28.57% 0.00% Incremental NAV Per Unit (cents): 12.42 0 6

  7. Managing Development Risk  Strong growth with limited financial exposure:  Annual development expenditures of $40 to $50 million  Represents just 4% − 5% of the REIT’s asset base  Pre-leased to anchor tenants prior to construction  Financed with long term debt, matched to lease maturities  Complete larger developments in phases  Minimal speculative developments  Capitalize on intense local market knowledge 7

  8. Development Case Study 1: 3 For 1 - Charlottetown, PEI 8

  9. Development Case Study 2: Dead Mall To Super Strip - Sherbrooke, QC 9

  10. Development Case Study 3: Shrink And Grow - Adapting To Market Conditions – Chambly Rd, Longueuil, QC 10

  11. Development Case Study 4: Patience And Vision – Making It Happen – Moncton, NB 11

  12. Planned Development Activity Planned Development Activity % Ownership Sq. Ft. at 100% Plaza de L’Ouest (Phase III), Sherbrooke, QC 50% 40,000 90 Blvd. Tache Ouest, Montmagny, QC 50% 6,000 St. Jerome (Phase I, II & III), St. Jerome (Montreal), QC 20% 188,066 Plaza Chemin Chambly, Longueuil (Montreal), QC (redevelopment) 100% 37,099 Oromocto Mall, Oromocto, NB (redevelopment) 100% 76,150 Grand Falls Shopping Centre, Grand Falls, NB (redevelopment) 100% 105,647 Lansdowne Place (Phase II), Saint John, NB 100% 60,000 Fairville Blvd (Phase III), Saint John, NB 100% 24,000 Starrs Rd, Yarmouth, NS (redevelopment) 100% 49,189 960 Cole Harbour Rd, Dartmouth (Halifax), NS (redevelopment) 100% 4,000 9 James St., Antigonish, NS (redevelopment) 100% 3,000 Lakeshore Blvd, Toronto, ON (redevelopment) 100% 1,878 280 Main St., Fredericton, NB 100% 35,000 Beauport, Beauport, QC (redevelopment) 100% 2,600 St. Charles, Kirkland, QC (redevelopment) 100% 2,554 Buchanan (Phase II), Charlottetown, PE 100% 63,601 37 th Street SW, Calgary, AB (redevelopment) 100% 2,161 274 North Front St., Belleville, ON (redevelopment) 100% 2,100 12

  13. Our Portfolio: Geography Percentage by Region: Sq. Ft. PROVINCE # Properties Region (000s) Alberta 11 51 Western Manitoba 8 35 Western Ontario 84 720 Ontario Atlantic Québec 97 1,835 Québec New Brunswick 49 1,724 Atlantic 61% Newfoundland 10 641 Atlantic Nova Scotia 37 1,167 Atlantic P.E.I. 10 509 Atlantic Total 306 6,682 100% Western 1% 27% Quebec 11% Ontario Competitive advantage in Atlantic Canada 13

  14. Our Portfolio: Tenancies Top Ten Tenants – 57% National & Regional Tenants (Q1 2015) (Q1 2015) 4.2% 1.3% 24.6% 4.1% 11.4% National 4.6% Regional 3.3% Local 2.9% 2.7% Non-Retail 2.3% 1.9% 90.4% 1.8% 1.8% 0 10 20 30 Quality tenant mix of creditworthy national retailers 14

  15. Our Portfolio: Occupancy 100.0% 97.9% 97.8% 97.4% 96.9% 96.8% 96.7% 96.5% 96.4% 95.9% 95.6% 94.8% 90.0% 80.0% 70.0% 60.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Current Preferred locations + high quality tenants = consistent high occupancy 15

  16. Our Portfolio: Lease Expiry Schedule 600,000 9.9% 9.5% 500,000 8.0% 400,000 7.2% Square Feet 6.5% 300,000 200,000 100,000 0 Remainder 2015 2016 2017 2018 2019 Strip Plazas Enclosed Malls Single-User Single-User Total Retail QSR Average Lease Term 6.9 years 3.9 years 9.0 years 4.5 years 6.6 years Average lease term ~ 6.6 years 16

  17. Our Portfolio: Mortgage Maturities 16.0% 14.7% 14.0% 11.8% 12.0% % of Total Principal 9.7% 10.0% 7.8% 8.0% 6.0% 4.0% 1.8% 2.0% 0.0% Remainder 2015 2016 2017 2018 2019 $6.3M $42.0M $34.3M $27.7M $52.3M 5.15% 5.31% 5.24% 4.96% 3.77% WA Expiring Rate WA Term to Maturity = 6.4 yrs Debt-to-Gross Assets = 47.7% (excluding converts) 53.9% (including converts) 17

  18. Track Record of Distribution Increases $0.30 $0.25 $0.20 Per Unit $0.15 $0.10 $0.05 $0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 18

  19. Cumulative Dividend/Distribution Growth vs Peers 180.00% Plaza 160.00% Calloway 140.00% 120.00% Crombie 100.00% First Capital 80.00% Riocan 60.00% 40.00% 20.00% 0.00% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 19

  20. Plaza’s Payout Ratio vs. Selected Retail Peers 140.0% 130.2% 120.0% 97.2% 90.4% 100.0% 89.6% 82.6% 79.5% 80.0% 60.0% 40.0% 20.0% 0.0% Plaza Calloway First Capital Riocan Crombie Retrocom (1) (1) Represents approximate amount based on public information as Retrocom doesn’t report AFFO 20

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