Granite Real Estate Investment Trust · TSX:GRT.UN
Granite Real Estate Investment Trust — Investor Presentation (November 2020)
20 slides from Granite Real Estate Investment Trust's investor presentation, November 2020
Slide 1: Investor Presentation
INVESTOR PRESENTATION | August 2020 INVESTOR PRESENTATION | November 2020
Slide 2: Presentation of Certain Information
PRESENTATION OF CERTAIN INFORMATION • Unless otherwise indicated in this presentation, all information is presented as of September 30, 2020 and all financial information that is identified as current refers to the period ending September 30, 2020. For definitions of certain non-IFRS measures used i
Slide 3: Granite Highlights
GRANITE HIGHLIGHTS ORGANIZATIONAL PRINCIPLES PORTFOLIO OVERVIEW FINANCIAL PERFORMANCE Long-term total return focused 101 income-producing properties + 76% LTM AFFO POR 7 development properties/land Conservative and flexible capital 24% net leverage ratio 45.3M square feet structure GRT.UN on TSX and
Slide 4: Granite Highlights - ESG
GRANITE HIGHLIGHTS - ESG ENVIRONMENTAL SOCIAL GOVERNANCE Promote energy efficiency and sustainable practices at our Promote employee well-being 100% independent Board properties excluding CEO Reduce use of resources and promote waste diversion Promote volunteerism and Experienced and diverse board c
Slide 5: Granite's Evolution
GRANITE’S EVOLUTION Investment Property Summary Then - December 31, 2011 Now - September 30, 2020 30.0M SF 13.8M SF Modern 14.1M SF Logistics/Distribution Multi-Purpose Special Purpose $3,316M $802M $1,089M 6.5M SF $1.9B Multi-Purpose $868M $5.3B Value Value 3 Properties Under Development and 4 Land
Slide 6: Portfolio Transformation Strategy
PORTFOLIO TRANSFORMATION STRATEGY Invest selectively/opportunistically in Target markets with superior Focus on modern facilities that meet evolving property types and markets economic conditions and market the demands of E-Commerce and benefiting from technological fundamentals traditional distribu
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Historical Operating Performance ($M) Distributions and Payout Ratios 91% 82% 81% $321 76% 71% $274 78% 79% 73% 78% 3.00 $248 $250 $245 2.90 71% 2.80 $223 69% 68% 68% $214 $216 2.72 $203 $204 $206 2.60 $183 $188 $185 $187 $181 2.43 $170 $173 $158 $162 $154 2.30 $145 2.21 $143 $
Slide 8: GRT Historical Performance
GRT HISTORICAL PERFORMANCE Total Return vs TSX Composite & TSX Capped REIT Indices Cumulative Total Return % Annualized Total Return % COVID-19 30% 220% 195% 20% 170% 10% 145% 120% 0% 95% 70% -10% 45% -20% 20% -5% -30% 1Yr 2Yr 3Yr 5Yr Granite REIT TSX Capped REIT Index TSX Composite Index Granite RE
Slide 9: Globally Diversified Portfolio
GLOBALLY DIVERSIFIED PORTFOLIO Eight countries – 108 properties – 45.3 million square feet GERMANY 11 properties ENGLAND 3.5M SF POLAND 1 property 2 properties 0.1M SF 0.3M SF CANADA 30 properties 5.9M SF NETHERLANDS 8 properties 2.6M SF UNITED STATES 44 properties 24.5M SF CZECH REPUBLIC AUSTRIA 1
Slide 10: Portfolio Segmentation by Geography
PORTFOLIO SEGMENTATION BY GEOGRAPHY By Income Producing Property Fair Value By Annualized Revenue $53.8M $52.2M $878M 17% $1,072M 17% 17% 20% $837M 16% $5.3B $64.9M 21% $312.1M $2,476M $141.2M 45% 47% By Square Feet By Number of Income-Producing Properties 6.8 13% 5.9 15% 21 21% 30 30% 18% 45.3M 11
Slide 11: Portfolio Segmentation by Category
PORTFOLIO SEGMENTATION BY CATEGORY Income-Producing Properties by Value Segmented by Category Multi-Purpose Properties 34 Properties 6.5 M SF (∼191K SF/property) $0.9 B Fair Value (∼$134/SF) WALT: 5.1 years $52.5M Annualized Revenue (∼$8.10/SF): 17% 17% Modern Logistics Properties Magna Concentratio
Slide 12: Development Pipeline
DEVELOPMENT PIPELINE Altbach, Germany Fort Worth, Texas Bleiswijk, Netherlands Houston, Texas (completed September 1, 2020) Incorporate development into our growth plans to enhance total return & platform value November 2020 12
Slide 13: Lease Expiration Profile
LEASE EXPIRATION PROFILE Outstanding Lease Expiries by Annualized Revenue Annualized Overall Revenue $312.1M WALT 5.9 Years Occupancy 98.9% 90 45.6% Canada USA Austria Europe 80 70 Annualized Revenue (C$M) 60 20.0% 50 40 11.3% 13.1% 30 1.7% 7.9% 20 0.4% 10 0 2020 2021 2022 2023 2024 2025 2026+ % of
Slide 14: High Quality & Creditworthy Tenant Base
HIGH QUALITY & CREDITWORTHY TENANT BASE Other Tenants Annualized Credit Top 10 Tenants GLA % WALT Revenue % Rating Magna 37% 30% 4.8 A (low) Amazon 6% 5% 18.3 AA (low) ADESA 3% —% 8.8 NR Restoration Hardware 2% 3% 7.6 NR Hanon Systems 2% 1% 8.9 AA Ingram Micro 2% 2% 4.3 BB (high) Cornerstone Brands
Slide 15: Balance Sheet Strength (C$M)
BALANCE SHEET STRENGTH Capitalization Debt Maturity Profile Unit Price (10/30/2020) $74.7 $600 Units Outstanding 57.8 499 500 Market Capitalization $4,321 $500 400 $400 Credit Facility $0 300 $300 250 246 (C$M) Debentures 3.788% due Jul/21 $250 Debentures 3.873% due Nov/23 $400 $200 Debentures 3.062
Slide 16: Credit Metrics Summary
CREDIT METRICS SUMMARY • The following table was sourced from DBRS’ Canadian Real Estate Peer Comparison dated September 2020. DBRS Canadian Real Estate Peer Comparison1: Peer Group Granite Rank Granite Average Among Peer Group Total Debt to Capital 27.4% 49.0% #1 Total Debt to EBITDA 5.6x 9.3x #1 C
Slide 17: Financial Flexibility & Target Long-Term Leverage Ratio
FINANCIAL FLEXIBILITY & TARGET LONG-TERM LEVERAGE RATIO • Strong balance sheet provides pathway for measured growth with potential for further diversification and optimization of the portfolio • Target long term net leverage ratio of ∼30 - 35% while maintaining patient and opportunistic approach to
Slide 18: Canadian Real Estate Debt Comparison
CANADIAN REAL ESTATE DEBT COMPARISON1 Total Debt-to-Capital Total Debt-to-EBITDA 80% 18.0x 16.0x 70% 14.0x 60% 12.0x 50% 10.0x 40% 8.0x 6.0x 30% 4.0x 20% 2.0x 10% 0.0x Granite has the lowest leverage within DBRS1 universe of Canadian Real Estate entities 1 Source: DBRS Canadian Real Estate Peer Comp
Slide 19: Canadian Real Estate Debt Comparison
CANADIAN REAL ESTATE DEBT COMPARISON1 EBITDA Interest Coverage Distributions/Cash Flow from Operations2 8.0x 1.20 7.0x 1.00 6.0x 0.80 5.0x 4.0x 0.60 3.0x 0.40 2.0x 0.20 1.0x 0.0x 0.00 Granite has leading cash flow coverage metrics among DBRS1 universe of Canadian Real Estate entities 1 Source: DBRS
Slide 20: Leadership Team
LEADERSHIP TEAM Kevan Gorrie Teresa Neto • President and Chief Executive Officer • Chief Financial Officer • Over 20 years of real estate experience in Canada, • Over 30 years of varied business experience, the United States and Germany. including ∼10 years as a CFO for publicly-traded • Previously
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