Real Estate and the Debt Market RealCapital 2012 February 29, 2012 February 29, 2012
Market Makeup SECTION I
Market Makeup Unsecured Issuance – Pension Funds and Public Real Estate Companies New Issue Activity: 2011 – 2012YTD Issue Amount Issue Rating Date Issuer (C$MM) Term Spread Coupon DBRS Moody's S&P Jan-11 RioCan REIT 225 5 Years +190bps 4.499% BBB (H) NR BBB- Jan-11 First Capital 150 8.5 Years +230bps 5.480% BBB Baa3 NR Jan-11 Cadillac Fairview Finance Trust 1,250 5 Years +68bps 3.240% AAA NR AAA Jan-11 Cadillac Fairview Finance Trust 750 10 Years +100bps 4.310% AAA NR AAA Jan-11 H&R REIT 180 5.5 Years +205bps 4.778% BBB NR NR Mar-11 First Capital 110 9.1 Years +243bps 5.600% BBB Baa3 NR May-11 Cadillac Fairview Finance Trust 600 7 Years +81bps 3.640% AAA NR AAA Jun-11 First Capital 65 8.8 Years +237bps 5.600% BBB Baa3 NR Aug-11 Calloway REIT 90 7 Years +270bps 4.700% BBB NR NR Nov-11 H&R REIT 100 6.3 Years +295bps 4.900% BBB NR NR Jan-12 Brookfield Properties Inc. 200 5 Years +300bps 4.300% BBB (H) NR BBB- Jan-12 RioCan REIT 150 5.1 Years +239bps 3.800% BBB (H) NR BBB- Total Issuance 3,870 Overview of New Issue Activity: 2004 – 2011 4,000 3,520 3,500 3,000 Supply (C$MM) 2,500 2,000 1,590 1,408 1,500 1,030 950 870 790 1,000 600 350 500 0 2004 2005 2006 2007 2008 2009 2010 2011 2012YTD 2
Market Makeup Mortgage Bonds Issuance New Issue Activity: 2009 – 2012YTD Amount Issue Date Parent Property (C$MM) Term Spread Rating Jun-09 Brookfield / ARCI Petro-Canada Centre 370 5 Years +390bps A2 - Moodys Dec-09 Brookfield / AIMCO / CPP First Canadian Place 310 5 Years +280bps N/A Jun-10 Ontrea Limeridge Mall 181 10 Years +195bps A(low) - DBRS Sep-10 Oxford Upper Canada Mall (50%) 120 10 Years +175bps N/A Mar-11 Morguard Bramalea CC (Series C) 75 7 Years +165bps N/A Mar-11 Morguard Bramalea CC (Series D) 100 10 Years +160bps N/A Apr-11 Ontrea RBC Centre 300 7 Years +155bps A(low) - DBRS Jun-11 Primaris Oakville Place 115 Years +168bps N/A Aug-11 Brookfield / AIMCO Fifth Avenue Place 350 10 Years +175bps A - DBRS Dec-11 Brookfield Bay Adelaide Centre 405 10 Years +260bps N/A Jan-12 Minto Minto Place 100 7.25 Years +250bps N/A Total Issuance Total Issuance 2,426 2,426 3
Market Makeup Capital Components - Still Heavy Use of Secured Funding Industry Unsecured Issuers ���������� �������������� ���������� ��������������� ��������������� ��� ��������������� ��� 4
Value for Investors SECTION II
Value for Investors Wide End of Broader Corporate Universe 5-Year Credit Rating Relative Value ��$ ������� �$� ��$ ��� �������� ��$ ������� "#���� �$� � !���� � !���� �0�����1(0�2 #'����� ��#���� ��$ �&�")� (#'����� ��� &�&���� -�$ �(!���� !����� (�*�")� �,#���� !���%��� ����� (�*��%��� #)��%��� -$� %'������ #)�")� �!#���� �&���� �#����� '������ (������ #������ -�$ (�*���� !������ (���� '!#���� ������� %������ #)���� ������ !����� ���!���� (�*���� !")���� !"����� (������ -�� %+� �&#������ %!&&���� '�(���� '%����� !����� ��%���� ������ ")����� !#����� �$ '!#���� $� � - � � . $ / � � � -� -- &&& &&3 && &&4 &3 & &4 (((3 ((( (((4 6
Value for Investors Wide End of Broader BBB Universe Relative Value Chart – Real Estate Unsecured Issuers vs. CAD BBB Universe ��� ��$ �$� ��$ ��� �0�����1�0�2 -�$ -$� -�$ -�� #��7�'����������������������� (((���86���� �$ -4,��4-� -/4��54-. ��4��04-$ �4���4-� �.4,��4-� /4��64-� 7
Value for Investors Good Risk Adjusted Value Market based measure of credit stability favourable ��� %����9�7�� ��8��9�7�� &6������9�7��878�5 ��� "# �.� � ! #'� ��# ��� ��� �0�����1�0�2 &�& ��� (& -/� ��* �!# %'�� �& &6�������0���� '��&�� ( !�� � -�� (�* (�� ��: �� '�( ��8��9�7�� �����9�7�� !� �� -� -- -� -� -. -$ -/ -� -� -� �� �- �� �� �. �$ �/ �� �� �� �� �- �� �� �. �$ �/ �� �� �� .� ��8���9�7��878�5�1�2 8
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