Real Estate and the Debt Market RealCapital 2012 February 29, 2012 - - PowerPoint PPT Presentation

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 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- Rating

2

Overview of New Issue Activity: 2004 – 2011

Jan-12 RioCan REIT 150 5.1 Years +239bps 3.800% BBB (H) NR BBB- Total Issuance 3,870 790 1,590 950 870 600 1,030 1,408 3,520 350 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2004 2005 2006 2007 2008 2009 2010 2011 2012YTD Supply (C$MM)

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 2,426

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Total Issuance 2,426

Market Makeup

Capital Components - Still Heavy Use of Secured Funding

Industry Unsecured Issuers

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Value for Investors

SECTION II

Wide End of Broader Corporate Universe

Value for Investors

5-Year Credit Rating Relative Value

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Value for Investors

Relative Value Chart – Real Estate Unsecured Issuers vs. CAD BBB Universe

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