Presentation Q3 2019 1 FORWARD LOOKING STATEMENTS Certain - - PowerPoint PPT Presentation

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Presentation Q3 2019 1 FORWARD LOOKING STATEMENTS Certain - - PowerPoint PPT Presentation

Investor Presentation Q3 2019 1 FORWARD LOOKING STATEMENTS Certain statements contained in this document constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Choice Properties


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Investor Presentation

Q3 2019

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2 Certain statements contained in this document constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Choice Properties REIT’s (the “Trust”) future outlook and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the Trust. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the Trust or the real estate industry are forward-looking

  • statements. In some cases, forward-looking information can be identified by such terms such as ‘‘may’’, ‘‘might’’, ‘‘will’’, ‘‘could’’, ‘‘should’’, ‘‘would’’, ‘‘occur’’,

‘‘expect’’, ‘‘plan’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘intend’’, ‘‘estimate’’, ‘‘predict’’, ‘‘potential’’, ‘‘continue’’, ‘‘likely’’, ‘‘schedule’’, or the negative thereof or other similar expressions concerning matters that are not historical facts. The Trust has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs, including that the Canadian economy will remain stable over the next 12 months, that inflation will remain relatively low, that interest rates will remain stable, that tax laws remain unchanged, that conditions within the real estate market, including competition for acquisitions, will be consistent with the current climate, that the Canadian capital markets will provide the Trust with access to equity and/or debt at reasonable rates when required and that Loblaw will continue its involvement with the

  • Trust. Although the forward-looking statements contained in this document are based upon assumptions that management of the Trust believes are reasonable

based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking

  • statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Trust’s control, that

may cause the Trust’s or the industry’s actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors discussed under ‘‘Enterprise Risks and Risk Management’’ section of the Trust’s Report to Unitholders. The forward-looking statements made in this presentation relate only to events or information as of the date on which the statements are made in this document. Except as required by law, the Trust undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. These forward-looking statements are made as of November 26, 2019 and Choice Properties REIT assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

FORWARD LOOKING STATEMENTS

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A PREMIER DIVERSIFIED REIT

Choice Properties is an

  • wner, manager and

developer of a high-quality real estate portfolio Our goal is to provide NAV appreciation, stable NOI growth and capital preservation with a long- term focus

3

Stability

and

Growth

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Size, Scale and Reach

KEY INVESTMENT HIGHLIGHTS

Portfolio Stability and Reliability Development Potential Backed by a Robust Operating Platform Well-Positioned Portfolio Supported by Prudent Capital Structure

Canada’s premier REIT comprising of 726 properties spanning ~65.5M sq. ft. National footprint concentrated in Canada’s largest markets Portfolio focused on necessity- based retail, and high-quality industrial and office assets Strategic relationship with Loblaw and George Weston Limited Established operating platform with a proven track record of success Transformational development pipeline providing long-term value creation and growth Diversified portfolio with

  • ccupancy and staggered lease

maturities that support debt service Financial strength, solid balance sheet and investment grade credit rating (“BBB”)

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OUR PORTFOLIO

(1) As of September 30, 2019

Number of Properties (1) Retail Industrial 112 576

A diversified portfolio with a national footprint concentrated in Canada’s largest markets Offering stability through long-term leases and a strategic relationship with Loblaw – Canada’s largest retailer

INCOME PRODUCING Office Residential Developments 707 4 15 19 TOTAL

726

Square Footage (1) (M) 15.8 46.3 ~65.5 0.2 3.2

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TOP 10 TENANTS

(1) Gross rent for the three months ended September 30, 2019

Canadian Tire TJX Companies 1.0 2.4

High-quality tenant base Income stability through increased exposure to national investment grade tenants Anchored by a strategic relationship with Loblaw - Canada’s largest retailer

Dollarama Staples 0.7 0.8 Loblaw / Shoppers GoodLife Sobeys 0.6 0.6 TD Canada Trust LCBO 0.5 0.5 Lowe’s 0.5 64.7 57.1

Top 10 Tenants % of gross rental revenue (1)

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LONG-TERM LEASES PROVIDE CASH FLOW STABILITY

WALT TOTAL

6.8 years

LOBLAW

8.5 years

ANCILLARY

4.7 years

(1) As of September 30, 2019

1% 5% 6% 5% 12% 9% 61% 0% 10% 20% 30% 40% 50% 60% 70%

  • 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2019 2020 2021 2022 2023 2024 2025 & Beyond

LEASE EXPIRY BY YEAR (1)

Loblaw Ancillary % of Portfolio

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RETAIL

Strong composition of national tenants Focused on necessity- based retailers with 66% exposure to Loblaw, Canada’s largest food and drug retailer

8

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GLA (sq. ft.) GLA (sq. ft.) GLA (sq. ft.) GLA (sq. ft.)

Winston Churchill

RETAIL PROPERTIES

Seton Way Erin Mills

East Hastings

Mississauga, ON Calgary, AB Mississauga, ON Vancouver, BC

21K 320K 105K 260K

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INDUSTRIAL

High quality and generic product Critical mass in target markets Readily accommodates a broad range of tenants

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INDUSTRIAL PROPERTIES

3333 James Snow Parkway

Milton, ON

Choice Distribution Park

Calgary, AB

855K

  • sq. ft.

300K

  • sq. ft.

407K

  • sq. ft.

635K

  • sq. ft.

410 Business Centre

Brampton, ON

2755 190th Street

Surrey, BC

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OFFICE

Large office buildings in target markets Well-located office properties in the downtown core of some

  • f Canada’s largest cities

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GLA (sq. ft.) Ownership Major Tenants GLA (sq. ft.) Ownership Major Tenants GLA (sq. ft.) Ownership Major Tenants GLA (sq. ft.) Ownership Major Tenants

525 University Ave.

OFFICE PROPERTIES

175 Bloor St. East Calgary Place 1010 Sherbrooke Place

Toronto, ON Toronto, ON Calgary, AB Montreal, QC

330K 100%

  • Jarislowsky Fraser
  • McGill University
  • Canadian Bank

580K 50%

  • Alta Gas Ltd.
  • A.E.S.O.
  • MNP

600K 50%

  • Klick
  • Leo Burnett
  • Towers Watson
  • NORR Limited

200K 100%

  • Hospital for Sick Kids
  • Cancer Care Ontario
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TRANSFORMATIONAL DEVELOPMENT Development pipeline provides long-term growth and value creation

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(1) As of September 30, 2019 (2) Includes 4 major mixed use development projects currently in the pre-development phase for which the total investment and density is to be determined

GREENFIELD

18 projects

DEVELOPMENT PIPELINE (1)

0.5M $38M $169M

INTENSIFICATION

31 projects

  • sq. ft.

invested

total investment

1.2M $243M $367M

  • sq. ft.

invested

total investment

N/A $31M $49M

REDEVELOPMENT

4 projects (2)

invested

total investment

1.0M $112M $534M

RESIDENTIAL

7 projects

  • sq. ft.

invested

total investment

2.8M $424M $1.1B

TOTAL

60 projects

  • sq. ft.

invested

total investment

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210K sq. ft. Anchored by Sobeys and Shoppers Drug Mart Canada’s best community 2015 Partner:

Hopewell Development

RETAIL DEVELOPMENT

Mahogany Village Market

Calgary, AB

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300 Veterans Blvd.

Calgary, AB

47K sq. ft. of intensification Completed: Q3 2019 Leasing: 100% committed Anchored by Loblaws Intensification

includes Dollarama, Party City, and a Daycare

RETAIL INTENSIFICATION

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2994 Peddie Rd.

Milton, ON

28 acres 665K sq. ft. 36 foot clear heights Partner: Kylin Developments

INDUSTRIAL DEVELOPMENT

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390 DUFFERIN ST

TORONTO, ON 19

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390 Dufferin St.

Toronto, ON

347 units / 3 buildings Land acquired in Q3 2017 Transit accessible Partner:

Woodbourne Canada & CentreCourt Developments

RESIDENTIAL DEVELOPMENT

WALK SCORE TRANSIT SCORE BIKE SCORE 97 100 53

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39 EAST LIBERTY ST

TORONTO, ON 21

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39 East Liberty St.

Toronto, ON

387 units Construction commencement: Q1 2019 Transit accessible Partner:

Woodbourne Canada & CentreCourt Developments

RESIDENTIAL DEVELOPMENT

WALK SCORE TRANSIT SCORE BIKE SCORE 92 100 74

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Grenville and Grosvenor

Toronto, ON

700 units Provincial Affordable Housing Lands Program Transit accessible Partner: Greenwin

RESIDENTIAL DEVELOPMENT

WALK SCORE TRANSIT SCORE BIKE SCORE 99 100 75

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Major Mixed Use

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2280 DUNDAS ST. W

15-acre site in Downtown Toronto Major transit hub (TTC, GO Train, UP Express) Large mixed-use community High density residential, retail and

  • ffice

TORONTO, ON 25

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GOLDEN MILE

19-acre site in Toronto Adjacent to two new transit stations of Eglinton Crosstown Large mixed-use community High density residential and retail

TORONTO, ON 26

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NORTH ROAD

7-acre site in city centre Access to two lines of Vancouver SkyTrain Revitalization into mixed-use community High density residential and retail

COQUITLAM, BC 27

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985 WOODBINE AVE.

2-acre site in Downtown Toronto Directly adjacent to Woodbine TTC subway station Two mid-rise rental residential buildings Grocery retail at grade

TORONTO, ON 28

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47 properties in the City of Toronto Significant long-term development potential

LONG TERM POTENTIAL

Retail 35 Office 4 PUD 6 Residential 1 47

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10 LOWER JARVIS ST 4-acre site Core downtown location

TORONTO, ON 30

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31 TORONTO, ON

449 CARLAW AVE. 6-acre site Future stop on Downtown Relief Line

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32 TORONTO, ON

720 BROADVIEW AVE 3-acre site Close proximity to TTC subway station

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33 TORONTO, ON

25 PHOTOGRAPHY DR 7-acre site Adjacent to Eglinton LRT (Phase 1)

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34 TORONTO, ON

17 LESLIE ST 6-acre site Close proximity to Queen Streetcar

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FINANCIAL MANAGEMENT

Choice Properties’ foundation is built upon maintaining a strong balance sheet, financial flexibility, and prudent and disciplined financial management

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DEBT MATURITY PROFILE

(1) As at September 30, 2019 (2) Graph excludes $167M drawn on Choice Properties’ $1.5B unsecured revolving committed credit facility (revolver) (3) Proportionate share. Includes $99M of construction loans which are variable interest rate loans (weighted average interest rate

  • f 3.83% as at September 30, 2019)

PUBLIC DEBENTURES

Principal WAIR 3.67% $5,175M WATM 5.4 years

MORTGAGES & CONSTRUCTION LOANS

4.00% (3) $1,565M (3) 5.5 years

  • Choice Properties continues to maintain a well-balanced

debt maturity profile (2)

  • $1.5B unsecured revolving committed credit facility

provides liquidity and financial flexibility (matures May 2023)

$270 $179 $222 $109 $156 $152 $86 $46 $55 $38 $228 $550 $550 $600 $575 $750 $550

  • $750

$750

0% 12% 11% 12% 10% 13% 10% 1% 1% 12% 12% 5% $1,500

  • $200

$400 $600 $800 $1,000 $1,200 $1,400 $1,600 Revolver Capacity 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Thereafter

Debt Maturing ($M)

Mortgages and Construction Loans Current Unsecured Debentures Term Loan Facility Senior Unsecured Facility % of Debt

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Reducing leverage and strengthening

  • ur balance

sheet Additional capacity to fund

  • ur significant

development program

STRONG BALANCE SHEET

Q4 2018 Q3 2019

Debt ($M) $7.5M $6.9M Leverage Ratio 47.2% 43.5% Debt-to-EBITDA 8.0 X 7.5 X Weighted Avg. Term to Maturity 5.5 5.5 Weighted Avg. Interest Rate 3.74% 3.75%

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Stability

and Growth

OUTLOOK:

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