OTTAWA OTTAWA PROPERTY TOUR PROPERTY TOUR OCTOBER 23, 2019 OCTOBER 23, 2019 OTTAWA PROPERTY TOUR OCTOBER 23, 2019
PROREIT at a Glance Quick Facts Established in 2013, PROREIT owns $625 million of diversified commercial real estate properties in Canada, representing (As at October 16, 2019) over 4.4 million square feet of gross leasable area. PROREIT is Ticker Symbol (TSX) Total Units mainly focused on strong secondary markets in Québec, Atlantic PRV.UN 39,797,539 Canada and Ontario, with selective exposure in Western Canada. Tax Deferred Market Distribution Capitalization 100% (estimated) $285 million DRIP Eligible Yield 91 3% bonus units 8.8% Annual Distribution Average Daily Volume PROPERTIES $0.63 (post-consolidation) 103,000 IN 9 PROVINCES NOI by Asset Class (3 months ended June 30, 2019) Retail 43.8% BC: 5 Industrial 28.8% AB: 11 MB: 6 PEI: 1 SK: 4 Office 16.4% ON: 12 QC: 16 Commercial NB: 22 NS: 14 Mixed-Use 11.0% OTTAWA PROPERTY TOUR 2 OCTOBER 23, 2019
Increased Portfolio Diversification in Last Year Asset Class Number of Properties Occupancy (%) GLA (sq. ft.) Office 10 95.2 492,507 Retail 49 97.6 1,078,477 Industrial 24 98.0 2,102,011 Commercial Mixed-Use 8 98.4 723,066 Total 91 97.7 4,396,061 Based on in-place and committed base rent as of June 30, 2019, and including Sept. 2019 acquisitions Base Rent by Asset Class (%) Base Rent by Province (%) Retail Commercial Mixed Use Maritime Provinces Western Canada Industrial Office Québec Ontario 7.3 7.4 16.2 12.5 29.3 21.5 40.8 51.1 38.1 54.2 18.1 25.9 20.1 14.9 15.0 27.6 Q3 2018 Q3 2019 (1) Q3 2018 Q3 2019 (1) (1) Includes September 2019 seven properties acquisitions OTTAWA PROPERTY TOUR 3 OCTOBER 23, 2019
Our Growth History PROREIT CREATION BY FORMER CANMARC MANAGEMENT ► Internalization of asset management ► One $6 million (April 1, 2019) property, ► Graduation to TSX 397K sq. ft. GLA (May 7, 2019) ► TSX-V listing ► 32 properties, ► 66 properties, ► Consolidation (PRV.UN) 1.7M sq. ft. GLA 2.7M sq. ft. GLA of Units 3:1 2013 2014 2015 2016 2017 2018 2019 2019 Half-Year ► 23 properties, ► 39 properties, A TRANSFORMATIONAL FOCUSED ON 1.0M sq. ft. GLA 2.0M sq. ft. GLA YEAR THE FUTURE ► Achieved $500M ► Acquisitions asset target of 7 properties PROREIT has for $97.8M (closed ► 84 properties, Sept. 2019) consistently paid 3.7M sq. ft. GLA ► $57.6M equity ► $69.1 million in new attractive distributions offering (closed equity capital raised Aug. 16, 2019) every month, since ► Acquisition of property management platform January 2014 ► Present in 9 Canadian provinces OTTAWA PROPERTY TOUR 4 OCTOBER 23, 2019
Strong Experienced Management Team ► 70+ years of collective asset management and property management experience ► Former CANMARC REIT team James W. Gordon Lawlor , ► Sold to Cominar in 2012 Beckerleg CPA, CA Executive Vice President, Chief Executive Officer for $1.9B (43% annual ROI Chief Financial Officer and Trustee and Secretary since IPO) ► Extensive network of real estate and capital markets relationships ► Alignment with unitholders: officers and trustees own 6.5% Mark O'Brien Alison Schafer , Chris Andrea CPA, CA Managing Director President of outstanding Units Director of Finance Operations Compass Commercial Realty ► Competitive, objectives-based asset management structure OTTAWA PROPERTY TOUR 5 OCTOBER 23, 2019
Ottawa Market Overview Office Industrial Suburban Vacancy Rate Vacancy Rate Vacancy Rate 9.9% 8.8% 7.0% 7.0% 3.4% 2.3% Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2019 Q3 2019 Ottawa Office Ottawa Office Suburban AVG Ottawa Industrial Year-To-Date Absorption Asking Net Rents up (YoY) Year-To-Date Absorption 446,232 sq. ft. 3.7% 1,142,901 sq. ft. Ottawa Office CBD AVG Ottawa Industrial AVG Asking Asking Net Rents up (YoY) Net Rents up (YoY) 6.7% 12.9% All figures based on CBRE’s 2018 and 2019 Ottawa Office and Industrial Research Reports OTTAWA PROPERTY TOUR 6 OCTOBER 23, 2019
PROREIT Ottawa Portfolio Number of Properties Number of Tenants Portfolio WALT Portfolio Total GLA 7 62 5.4 Years 618,602 sq. ft. Ottawa Portfolio National Tenants as % of Base Rent as % of GLA as % of Occupancy Total Ottawa Base Rent Total Portfolio Total Portfolio 98.9% 82.5% 21.5% 14.1% OTTAWA PROPERTY TOUR 7 OCTOBER 23, 2019
PROREIT Ottawa Portfolio Top 5 Tenants Debt Investor’s Group Portfolio Based on Base Rent (In Order) Term Loan Amount Interest Rate Lender 5 Years $33.5M 4.33% RBC 1 DRS Technologies Canada 2 Ribbon Communications Canada 3 Government of Canada 251 Laurier Term Loan Amount Interest Rate Lender 4 Canada Post 10 Years $13.3M 2.94% TD 5 Costco Wholesale Top 5 Tenants 500 Palladium GLA as % of WALT Term Loan Amount Interest Rate Lender Total Ottawa Portfolio 7 Years 7 Years $33.9M 3.51% BMO 53% Base Rent as % of Total Ottawa Portfolio 54% OTTAWA PROPERTY TOUR 8 OCTOBER 23, 2019
Ottawa Property Tour 8 Property Address 1 2 Gurdwara Rd, Ottawa 5 2 9 Auriga Drive, Ottawa 3 31 Auriga Drive, Ottawa 4 159 Cleopatra Drive, Ottawa 5 1335 Carling Ave, Ottawa 3 2 6 500 Palladium Drive, Kanata 1 7 50 Frank Nighbor, Kanata 4 8 251 Laurier St W, Ottawa 6 7 OTTAWA PROPERTY TOUR 9 OCTOBER 23, 2019
Overview of the Investor’s Group Office Portfolio 1 2 3 4 5 Property Address Total GLA Occupancy* 282,149 SF 97.3% 1 2 Gurdwara Rd, Ottawa Purchase price Purchase price per PSF 2 9 Auriga Drive, Ottawa $51.7M $183/psf 3 31 Auriga Drive, Ottawa WALT* Cap rate 3.7 Years 7.01% 4 159 Cleopatra Drive, Ottawa 5 1335 Carling Ave, Ottawa * Figures based on Q4 2018 transaction date OTTAWA PROPERTY TOUR 10 OCTOBER 23, 2019
2 Gurdwara Rd, Ottawa 1 Property Overview ► Six-storey office building located in the Hunt Club-Marivale GLA Occupancy WALT 94,473 sq. ft. 95.3% 4.1 Years node of Ottawa’s South-End submarket Year Acquired Year Built ► Stands out in the region due to great visibility along 2018 1990 Hunt Club Road and Prince of Wales Drive, two main arterial routes in the submarket Top Tenants ► Unique design and appeal J2 Global Canada Investors Group Financial Services ► Approx. 95% occupied by a mix of tenants, including Parkland Fuel Corporation national tenants such as Investors Group and Parkland Fuel ► Parking ratio of 3.5 stalls per 1,000 sq. ft. OTTAWA PROPERTY TOUR 11 OCTOBER 23, 2019
2 Gurdwara Rd, Ottawa 1 Property Overview OTTAWA OTTAWA PROPERTY TOUR PROPERTY TOUR 12 OCTOBER 23, 2019 OCTOBER 23, 2019
9 Auriga Drive, Ottawa 2 Property Overview ► Two-storey office building located in the Hunt GLA Occupancy WALT 29,149 sq. ft. 100% 2.3 Years Club-Marivale node Year Acquired Year Built ► Proximity to Hunt Club Road and Price of Wales Drive, 2018 1986 two main arterial routes in the South submarket region ► Direct access to the nearby airport and into Top Tenants downtown Ottawa Canada Post ► 100% occupied ► Above average parking ratio of 6 stalls per 1,000 sq. ft. OTTAWA PROPERTY TOUR 13 OCTOBER 23, 2019
9 Auriga Drive, Ottawa 2 Property Overview OTTAWA PROPERTY TOUR 14 OCTOBER 23, 2019
31 Auriga Drive, Ottawa 3 Property Overview ► Two-storey office building located in the Hunt Cub-Marivale node GLA Occupancy WALT 29,338 sq. ft. 100% 6.4 Years ► Benefits from its corner location on Auriga Drive and Deakin Street Year Acquired Year Built to provide great visibility 2018 2000 ► Proximity to Hunt Club Road and Prince of Wales Drive, two main arterial routes in the South submarket region Top Tenants Costco Wholesale ► 100% occupied and with potential for additional 10,000 sq. ft. ► Ample parking with a parking ratio of 3.6 stalls per 1,000 sq. ft. OTTAWA PROPERTY TOUR 15 OCTOBER 23, 2019
31 Auriga Drive, Ottawa 3 Property Overview OTTAWA PROPERTY TOUR 16 OCTOBER 23, 2019
159 Cleopatra Drive, Ottawa 4 Property Overview ► Two-storey office building located in the Hunt Club-Marivale node GLA Occupancy WALT 58,513 sq. ft. 100% 6.4 Years ► Proximity to many retail amenities along Hunt Club Road Year Acquired Year Built and Marivale Road 2018 1990 ► Close access to Hunt Club Road and Prince of Wales Drive Top Tenants ► Well connected to the rest of the Ottawa region Government of Canada ► 100% occupied with Government of Canada occupying 71% of NRA ► Unique in its ability to host, in its smaller leased space, a partial industrial user and ability for potential future industrial use OTTAWA PROPERTY TOUR 17 OCTOBER 23, 2019
159 Cleopatra Drive, Ottawa 4 Property Overview OTTAWA PROPERTY TOUR 18 OCTOBER 23, 2019
1335 Carling Ave, Ottawa 5 Property Overview ► Six-storey office building located in the Woodward-Carling GLA Occupancy WALT 69,538 sq. ft. 96.7% 2.6 Years node of Ottawa’s West-End submarket Year Acquired Year Built ► Great visibility along Carling Ave from the Queensway (HWY 417) 2018 1975 ► Approx. 97% occupied by a mix of medical offices and professional services Top Tenants Securitas Canada ► Easy access to the Queensway (HWY 417) and its location next to significant development projects taking place in the area ► Most notable project is RioCan’s redevelopment of adjacent Westgate Mall, where more than 1,100 residential units will be added OTTAWA PROPERTY TOUR 19 OCTOBER 23, 2019
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