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 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
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
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
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
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
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
Development Case Study 1: 3 For 1 - Charlottetown, PEI 8
Development Case Study 2: Dead Mall To Super Strip - Sherbrooke, QC 9
Development Case Study 3: Shrink And Grow - Adapting To Market Conditions – Chambly Rd, Longueuil, QC 10
Development Case Study 4: Patience And Vision – Making It Happen – Moncton, NB 11
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
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
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
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
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
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
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
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
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
Recommend
More recommend
