Crombie Real Estate Investment Trust · TSX:CRR.UN
Crombie Real Estate Investment Trust — Q4 2024 Earnings Presentation
32 slides from Crombie Real Estate Investment Trust's earnings presentation, Feb 20, 2025
Slide 1: Crombie REIT Investor Presentation Q4 2024
C A N A D A’ S E S S E N T I A L R E I T Crombie REIT Investor Presentation Q4 2024 COPYRIGHT © CROMBIE REIT OR ITS LICENSORS. ALL RIGHTS RESERVED 2025
Slide 2: Cautionary Statements
Cautionary Statements Readers are cautioned that such forward-looking statements are subject to certain risks Forward-looking Information and uncertainties that could cause actual results to differ materially from these statements. Crombie can give no assurance that actual results will be consistent
Slide 3: Connecting Communities Across Canada
Connecting Communities Across Canada 13 70 45 43 NFLD 67 AB+SK 17 49 Coast-to-coast presence spanning QC urban hubs to the BC centre of vibrant communities and MB NB+NS+PEI ON towns COPYRIGHT © CROMBIE REIT OR ITS LICENSORS. ALL RIGHTS RESERVED 2025 3
Slide 4: Focused on Grocery-Anchored, Necessity-Based Retail
Focused on Grocery-Anchored, Necessity-Based Retail TOTAL GROCERY-ANCHORED AND NECESSITY-BASED RETAIL1 82% 1 Necessity-based retailers include tenants that provide essential products and services, and predominantly fall into the following categories: grocery, pharmacy, liquor, dollar store, cannabis
Slide 5: Purpose-Driven, Results-Oriented
Purpose-Driven, Results-Oriented SCALE 304 $5.9B 19.1M properties 1 fair value 2,3 sq. ft. of GLA2 STABILITY 96.8% 81% 8.5 year committed occupancy of annual minimum rent (“AMR”) generated weighted average lease term from grocery-anchored properties inclusive (“WALT”) of retail-related industrial OP
Slide 6: Strategic Pillars Ensure Stability & Growth
Strategic Pillars Ensure Stability & Growth Building Together VALUE CREATION tidy Own & Operate Optimize Partner SOLID FOUNDATION Financial Strength People & Culture ESG Enriching communities by building spaces and value today that leave a positive impact on tomorrow COPYRIGHT © CROMBIE REIT OR ITS
Slide 7: Own & Operate
Own & Operate BUILT TO PERFORM COPYRIGHT © CROMBIE REIT OR ITS LICENSORS. ALL RIGHTS RESERVED 2025 7
Slide 8: Grocery-Anchored Retail Portfolio with Strategic Complementary Assets
Grocery-Anchored Retail Portfolio with Strategic Complementary Assets Three of the Most Desirable Asset Classes in Canadian Real Estate1 Retail Retail-Related Industrial Mixed-Use Residential $4.4B 15.0m $0.6B 2.5m $0.5B 0.6m FAIR VALUE SQ. FT. FAIR VALUE SQ. FT. FAIR VALUE SQ. FT. 1 Crombie’s portf
Slide 9: Coast-to-Coast Platform
Coast-to-Coast Platform BY GEOGRAPHY BY MARKET TYPE total 19.1M sq. ft Gross Leasable Area West 6.6m sq. ft. VECTOM1 6.6m sq. ft. Central 5.3m sq. ft. Major Markets2 4.9m sq. ft. Atlantic 7.1m sq. ft. Rest of Canada 7.6m sq. ft. 1 Vancouver, Edmonton, Calgary, Toronto, Ottawa-Gatineau, Montreal, as
Slide 10: Optimal Mix of Lease Terms
Optimal Mix of Lease Terms weighted average 32.9% of leases mature Other lease term over the next five years Empire 8.5 years % of total portfolio Empire: 10.8 years Other: 4.3 years 1400 10 1200 7.5% 8 1000 7.1% 7.1% 7.1% % of total portfolio sq. ft in thousands 6 of portfolio 800 5.7% 5.5% renews
Slide 11: Constantly Evaluating & Upgrading the Portfolio
Constantly Evaluating & Upgrading the Portfolio Acquisitions Property Location Property Type GLA Occupancy Barnet Street Powell River, BC Grocery-anchored retail 48,000 100.0% 9th Avenue Golden, BC Grocery-anchored retail 14,000 100.0% Paul Street Dieppe, NB Land - - Zephyr (Davie Street) Vancouver,
Slide 12: Essential Portfolio Drives Stability & Growth
Essential Portfolio Drives Stability & Growth COMMITTED OCCUPANCY ANNUAL SAME-ASSET PROPERTY CASH LAST 3 YEARS NOI GROWTH (“SANOI”)1 LAST 3 YEARS 96.5% 96.9% 2.5% 2.9% 2%-3% Low High Average Q4 2024 Target ANNUAL MINIMUM RENT GROWTH Property Revenue 2022 $17.07 2024 2023 $17.58 +4.3% 2024 $18.27 Ren
Slide 13: Optimize
Optimize POSITIONED TO LEAD COPYRIGHT © CROMBIE REIT OR ITS LICENSORS. ALL RIGHTS RESERVED 2025 13
Slide 14: Four Key Levers for Flexibility in Both Non-Major and Major Developments
Four Key Levers for Flexibility in Both Non-Major and Major Developments NON-MAJOR MAJOR Projects less than $50M Projects greater than $50M Modernize Intensify Entitle Develop • Capital investments in • Adding GLA and/or • Advancing key sites • Large-scale, transformative existing grocery-anchored r
Slide 15: Consistent Value Creation Through Non-Major Developments
Consistent Value Creation Through Non-Major Developments Shorter Duration, Reduced Risk NON-MAJOR DEVELOPMENTS UNDER PROJECT GLA ON ESTIMATED ESTIMATED COST CONSTRUCTION COUNT COMPLETION TOTAL COST TO COMPLETE1 Land-use intensification, 1 52,000 $26.5M $17.0M redevelopment, and other Modernizations2
Slide 16: Our Major Development Pipeline Drives Long-Term Value Creation
Our Major Development Pipeline Drives Long-Term Value Creation * Potential to add 10.6m sq. ft. 11,291 residential units BC 1 AB NL 15% Pipeline properties 1 SK 1 10 MB with zoning approval1 4 Vancouver ON QB 4 NB NS Potential to add ~4,500 residential units Calgary & Edmonton Halifax 15% Pipeline p
Slide 17: Partner
Partner LEVERAGING AND UNLOCKING VALUE THROUGH OUR STRATEGIC PARTNERSHIPS COPYRIGHT © CROMBIE REIT OR ITS LICENSORS. ALL RIGHTS RESERVED 2025 17
Slide 18: Strategic Alignment with Empire
Strategic Alignment with Empire EMPIRE REPRESENTS 1 11.3M 59.1% 10.8 year 89% sq. ft. of occupied of AMR generated weighted average remaining of retail properties portfolio GLA by Empire Empire lease term anchored by Empire CAPITALIZING ON STRATEGIC ALIGNMENT ACQUISITIONS LAND-USE MODERNIZATIONS IND
Slide 19: Partnering Beyond Empire
Partnering Beyond Empire SPECIALIZED EXPERTISE, CAPITAL, AND INSIGHTS TO SUPPORT THE OPTIMIZATION OF OUR ASSETS PARTNERSHIPS TO SUPPORT… REDUCE CAPITAL UNLOCK GAIN LOCAL KNOWLEDGE ACCELERATE VALUE REQUIREMENTS INCOME AND RESOURCES CREATION COPYRIGHT © CROMBIE REIT OR ITS LICENSORS. ALL RIGHTS RESERV
Slide 20: Solid Foundation
Solid Foundation FINANCIAL STRENGTH, ESG LEADERSHIP, PEOPLE AND CULTURE. COPYRIGHT © CROMBIE REIT OR ITS LICENSORS. ALL RIGHTS RESERVED 2025 20
Slide 21: Well-Positioned Defensive Portfolio with Long-Term Earnings and Cash Flow Stability
Well-Positioned Defensive Portfolio with Long–Term Earnings and Cash Flow Stability As at December 31, 2024 $3.7B Optimal low-cost capital structure Fair Value of Unencumbered Assets 25.0% 3.1% 1.1% $682M 52.1% 50.7% 48.9% 45.7% 0.6% 45.3% 44.6% 45.2% 43.0% 43.6% 41.8% 13.8% Available Liquidity 2,3
Slide 22: Financial Strength and Flexibility
Financial Strength and Flexibility For the period ended 2024 2023 2022 2021 2020 Available Liquidity1 (millions) $682 $584 $583 $508 $472 Unencumbered Assets (billions) $3.7 $2.6 $2.2 $1.8 $1.4 Interest Coverage Ratio2,3 3.33x 3.16x 3.28x 3.01x6 2.89x6 WATM4 (years) 5.1 4.9 4.7 5.1 5.3 Debt to EBITD
Slide 23: Prudent Financial Position
Prudent Financial Position SOURCES AND USES OF CAPITAL Multiple Sources of Capital Capital Deployment Capital Markets Dispositions Free Cash Flow Empire Developments Debt Full or partial interest Acquisitions • Major • Unsecured notes Raw land sale Modernizations • Non-major • Mortgages Sale of the
Slide 24: Q4 2024 Highlights
Q4 2024 Highlights Available liquidity – Property revenue1 FFO per unit2,3 AFFO per unit2,3 unutilized credit facilities4 $121,595 $0.32 $0.28 $682,218 $116,986 +3.9% $0.30 +6.7% $0.26 +7.7% $583,770 +16.9% Same-asset property cash NOI 2,3 FFO payout ratio2 AFFO payout ratio2 Debt/EBITDA 2,3 $81,112
Slide 25: 2024 Highlights
2024 Highlights Available liquidity – Property revenue1 FFO per unit2,3 AFFO per unit2,3 unutilized credit facilities4 $471,025 $1.24 $1.08 $682,218 $451,689 +4.3% $1.17 +6.0% $1.01 +6.9% $583,770 +16.9% Same-asset property cash NOI2,3 FFO payout ratio2 AFFO payout ratio2 Debt/EBITDA2,3 $314,654 71.
Slide 26: ESG: Essential to Building a Sustainable Tomorrow
ESG: Essential to Building a Sustainable Tomorrow ENVIRONMENTAL SOCIAL GOVERNANCE NEAR-TERM Community Impact Strategy 2024 ACCOMPLISHMENTS focuses on three key pillars: Adding one new diverse Trustee 50% Reduction in Scope 1 and 2 GHG1 emissions by 2030 from 2019 base year2 FINANCIAL SUPPORT Refresh
Slide 27: People & Culture
People & Culture Empowering Talent, Building Together, & Delivering Impact Mentorship opportunities leadership training continuing education Prioritize diversity, equity, and inclusion Flexible work policies emphasis on well-being A workplace where collaboration, innovation, and accountability thriv
Slide 28: Appendix
Appendix COPYRIGHT © CROMBIE REIT OR ITS LICENSORS. ALL RIGHTS RESERVED 2025 28
Slide 29: Calculation of Non-GAAP Measures
Calculation of Non-GAAP Measures1 Debt to Trailing 12 Months Adjusted EBITDA 2024 2023 2022 20212,3 20202,3 Debt $2,614,825 $2,468,755 $2,359,458 $2,517,392 $2,649,583 Adjusted EBITDA 328,558 307,356 294,259 280,057 256,689 Debt to Trailing 12 Months Adjusted EBITDA 7.96x 8.03x 8.02x 8.99x 10.32x De
Slide 30: Calculation of Non-GAAP Measures
Calculation of Non-GAAP Measures1 Interest Coverage Ratio Q4 2024 2024 2023 2022 20212 20202 Adjusted EBITDA $85,129 $328,558 $307,356 $294,259 $280,057 $256,689 Adjusted Interest Expense 23,680 98,707 97,243 89,787 93,022 88,701 Interest Coverage Ratio 3.31x 3.33x 3.16x 3.28x 3.01x 2.89x 1Non-GAAP
Slide 31: Calculation of Non-GAAP Measures
Calculation of Non-GAAP Measures1 FFO and AFFO Three Months Ended Dec 31 Year Ended Dec 31 2024 2023 2024 2023 FFO $58,131 $54,590 $227,049 $210,003 Units Outstanding 183,657 180,728 182,567 179,684 Per Unit $0.32 $0.30 $1.24 $1.17 Payout Ratio 70.3% 73.7% 71.6% 76.2% Three Months Ended Dec 31 Year
Slide 32: Crombie REIT Investor Presentation
C A N A D A’ S E S S E N T I A L R E I T Crombie REIT Investor Presentation Q4 2024 COPYRIGHT © CROMBIE REIT OR ITS LICENSORS. ALL RIGHTS RESERVED 2025
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