52 slides from First Capital Real Estate Investment Trust's investor presentation, November 2018
Slide 1: Investor Presentation
Investor
Slide 2: Forward-looking Statements and Non-IFRS Financial Measures
Forward-looking Statements and Non-IFRS Financial Measures This material may contain forward-looking statements, including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend” and similar expressions to the extent they relate to First Capital Realty Inc
Slide 3: Corporate Snapshot (TSX: FCR)
Corporate Snapshot (TSX: FCR) Canada’s leading owner, developer and operator of grocery anchored, retail-focused urban properties where people live and shop for everyday life • Large urban market focus across Canada • 166 properties • 25.5 million sq. ft. (23.8 million sq. ft. at FCR share) of gross
Slide 4: Key Investment Highlights
Key Investment Highlights Best in Class Portfolio: • High quality major market, Canadian retail focused portfolio • Industry leading same property income growth Growth – Proven Development Capability: • Internal capability with strong track record of property development and repositioning • Developm
Slide 5: Strong Growth in NAV Per Share
Strong Growth in NAV Per Share 23.5% $22.54 Since Jan 1, 2016 $21.85 $19.53 $18.25 YE 2015 YE 2016 YE 2017 YTD 2018 5
Slide 6: Strong Growth in FFO Per Share
Strong Growth in FFO Per Share 17.2% Since Jan 1, 2016 $1.16 $1.11 $0.99 $0.92 YE 2015 YE 2016 YE 2017 YTD 2018 6
Slide 7: Best in Class Portfolio
Best in Class Portfolio
Slide 8: Urban Markets with High Barriers to Entry
Urban Markets with High Barriers to Entry Western Canada Central Canada Eastern Canada Edmonton Calgary 10% 9% Vancouver 12% 12% Quebec City 2% 13% Greater Toronto Area 6% Montreal Ottawa 39% PROPERTIES GLA FAIR VALUE% PROPERTIES GLA FAIR VALUE% PROPERTIES GLA FAIR VALUE% 50 7.3M 34% 64 9.0M 45% 52
Slide 9: Leading Portfolio Demographics
Leading Portfolio Demographics FCR Portfolio Demographic Metrics: Q3 2018 * 226,000 $110,000 US$112,000 $98,700 142,000 107,400 US Cdn Q3 US Cdn Peers ** Peers *** 2018 Cdn Q3 USPeers ** Peers *** 2018 Peers ** Peers *** US Peers ** 5 Km Population 5 Km Household Income As of September 30, 2018 * So
Slide 10: Premier Portfolio, Superior Rent Growth
Premier Portfolio Highest Rents in Sector Superior FCR rents are Rent Growth 26% higher Potential than peer group average $21.00 Average rent growth 5 year CAGR $20.14 • FCR: 3.2% • Peer Group: 1.7% $18.39 $18.32 $18.00 Peer Group Average $15.29 $15.98 $15.00 $14.48 $13.42 $12.00 $9.00 FCR Crombie R
Slide 11: Industry Leading Performance: Total Same Property NOI Growth
Industry Leading Performance Total Same Property NOI Growth 8.0% 7.0% 5 year average 10 year average 2.8% 3.3% 6.0% 5.0% 4.0% 3.1% 3.0% 2.0% 1.0% 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018 11
Slide 12: Industry Leading Performance: Lease Renewal Rate Increases
Industry Leading Performance Lease Renewal Rate Increases 16.0% 14.0% 5 year average 10 year average 8.5% 10.1% 12.0% 10.0% 8.0% 8.0% 6.0% 4.0% 2.0% 0.0% (1) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018 Represents increase on total portfolio basis. Includes renewal options, and contrac
Slide 13: Strategic and Diversified Tenant Mix
Strategic and Diversified Tenant Mix # of Stores % of Rent Grocery Stores 138 18.0% Pharmacies 136 9.1% Liquor Stores 102 3.4% Banks & Credit 217 8.6% Unions Restaurants & Cafes 999 13.7% Medical, Professional & 1,497 14.5% Personal Services Fitness Facilities 89 3.6% E-Commerce Daycare Proof ~ 33%
Slide 14: Top Tenants
Top 20 Tenants As of September 30, 2018 Contribute 46% of annualized minimum rent (AMR) Investment Investment Rank # Tenant AMR Rank # Tenant AMR Grade Grade 1. 10.0%* ✓ 11. 1.5% ✓ 2. 6.1% - 12. 1.3% ✓ 3. 3.9% ✓ 13. 1.2% ✓ 4. 2.8% ✓ 14. 1.2% ✓ 5. 2.7% ✓ 15. 1.1%** - 6. 2.1% ✓ 16. 1.0% - 7. 1.9% ✓ 17
Slide 15: Recent Acquisition / Development: Yonge and Bloor, Toronto
Recent Acquisition / Development Yonge and Bloor, Toronto, ON Demographics 3KM AVG Population (2018 Estimates) 309,300 Household Income (2018 Estimates) $136,000 Subject Site: 1 Bloor Street East 15
Slide 16: One Bloor East, Toronto, ON
One Bloor East, Toronto, ON Nordstrom Rack Grand Opening – May 3, 2018 Property Statistics Retail GLA 85,000 sq. ft. Commercial Parking 52 Stalls Purchase Price $189M Anchors 16
Slide 17: Recent Acquisition: Hazelton Hotel, Toronto
Recent Acquisition (IPP) Hazelton Hotel, Toronto, ON Demographics 3KM AVG Population (2018 Estimates) 314,400 Household Income (2018 Estimates) $136,700 Toronto’s First and Top Performing 5 Star Hotel 17
Slide 18: Yonge & Roselawn, Toronto, ON
Recent Acquisition / Future Mixed-Use Development Yonge & Roselawn, Toronto, ON Demographics 3KM AVG Population (2018 Estimates) 184,700 Household Income (2018 Estimates) $210,300 NORTH TORONTO COLLEGIATE 2.05 INSTITUTE acres 18
Slide 19: Major Redevelopment Property: Former Christie Cookie Site
Major Redevelopment Property Former Christie Cookie Site, Toronto, ON Demographics 3KM AVG Population (2018 Estimates) 81,500 Household Income (2018 Estimates) $120,000 50% Partner (non-managing) 28 acres 19
Slide 20: Major Redevelopment Property: Former Christie Cookie Site
Major Redevelopment Property Former Christie Cookie Site, Toronto, ON Surrounding Approved High Density 15 Residential Sites Additional Population Growth ~20,000 20
Slide 21: Development, Re-development and Intensification
Development, Re-development and Intensification (Core Competency)
Slide 22: Investment in Development and Redevelopment
Investment in Development and Redevelopment $164.6M – YTD 2018 Yorkville Village Assets 3080 Yonge Street Mount Royal Village Assets Toronto, ON Toronto, ON Calgary, AB King High Line Edmonton Brewery District Centre Commercial Wilderton Toronto, ON Edmonton, AB Montreal, QC Future Pipeline: 22.3M s
Slide 23: Yorkville Village, Toronto, ON
Yorkville Village, Toronto, ON Property Statistics 3KM AVG Population (2018 Estimates) 312,600 Household Income (average) $137,300 (2018 Estimates) Planned GLA upon completion 315,000 (Yorkville Village) One Bloor GLA 85,000 Hazelton Hotel GLA (FCR share) 40,000 Total Bloor/Yorkville 440,000 23
Slide 24: Yorkville Village: Avenue Road Façade
Yorkville Village, Toronto, ON Avenue Road Façade Before Current 24
Slide 25: Yorkville Village, Toronto, ON
Yorkville Village, Toronto, ON Avenue Road New Yorkville Entrance Interior Mall Events Program at Yorkville 25
Slide 26: Yorkville Village: Re-Developing Street Front Retail
Yorkville Village, Toronto, ON Re-Developing Street Front Retail 101 Yorkville - Pending Redevelopment 26
Slide 27: Mount Royal Village, Calgary, AB
Mount Royal Village, Calgary, AB Demographics 3KM AVG Population (2018 Estimates) 120,000 Household Income (2018 Estimates) $145,000 Total Acreage 4.1 Total GLA 380,000 27
Slide 28: Mount Royal Village: Redevelopment Phase Recently Completed
Mount Royal Village, Calgary, AB Redevelopment Phase recently completed Before 28
Slide 29: Mount Royal Village: Redevelopment Phase Recently Completed
Mount Royal Village, Calgary, AB Redevelopment Phase recently completed Current 29
Slide 30: Mount Royal West: Phase Under Development
Mount Royal West, Calgary, AB Phase Under Development Current 30
Slide 31: Mount Royal West: Phase Under Development
Mount Royal West, Calgary, AB Phase Under Development Future 31
Slide 32: Liberty Village Assets, Toronto, ON
Liberty Village Assets, Toronto, ON Urban Retail and Residential Development Demographics 3KM AVG Population (2018 Estimates) 232,200 Household Income (2018 Estimates) $111,500 Total Acreage 14.1 Total GLA 815,000 32
Slide 33: Liberty Village Assets: King High Line Phase
Liberty Village Assets, Toronto ON King High Line Phase Current Property Statistics Acreage 2.8 Residential GLA 320,000 Retail GLA 155,000 Total GLA 475,000 Anchor Tenants 33
Slide 34: King High Line Phase: Phase Under Development
King High Line Phase, Liberty Village, Toronto, ON Phase Under Development Future 34
Slide 35: Edmonton Brewery District, Edmonton, AB
Edmonton Brewery District, Edmonton, AB Demographics 3KM AVG Population (2018 Estimates) 89,600 Household Income (2018 Estimates) $89,500 Total Acreage 11.8 Planned GLA upon completion 310,000 Anchor Tenants 35
Slide 36: Edmonton Brewery District, Edmonton, AB
Edmonton Brewery District, Edmonton, AB 36
Slide 37: 3080 Yonge St., Toronto: Re-development Commenced
3080 Yonge St., Toronto, ON Re-development Commenced Before 37
Slide 38: 3080 Yonge St., Toronto: Re-development Commenced
3080 Yonge St., Toronto, ON Re-development Commenced Current Demographics 3KM AVG Population (2018 Estimates) 149,200 Household Income (2018 Estimates) $213,800 Total Acreage 2.0 Upon completion 250,000 38
Slide 39: Centre Commercial Wilderton, Montreal: Re-development Commenced
Centre Commercial Wilderton, Montreal, QC Re-development Commenced Demographics 3KM AVG Population (2018 Estimates) 205,000 Household Income (2018 Estimates) $96,900 39
Slide 40: Centre Commercial Wilderton, Montreal: Re-development Commenced
Centre Commercial Wilderton, Montreal, QC Re-development Commenced Property Statistics Acreage 4.90 acres Existing GLA 112,000 Post Redevelopment GLA: Retail GLA 130,000 Residential GLA 500,000 Total GLA ~ 630,000 40
Slide 41: Corporate Social Responsibility
Corporate Social Responsibility
Slide 42: Sustainability Initiatives
Sustainability Initiatives 19% decrease in Greenhouse Gas (GHG) emissions from 2012-2017, despite 11% growth in GLA. 175 properties certified 35000 25000000 66% of portfolio in GLA. 30000 24500000 25000 24000000 Emissions (tC02e) 117 projects certified GLA (ft2) 20000 23500000 3.4 Million Sq. Ft. 15
Slide 43: Community Building: FCR Public Arts Program
Community Building FCR Public Arts Program 27 Public Art Installations across our portfolio Public Art Competitions in partnership with: 43
Slide 44: Canada's Most Gender Diverse Company
Canada’s Most Gender Diverse Company* * As per Canada’s First Gender Diversity ETF (TSX:HERS) – Launched in 2017 44
Slide 45: Financial Strength and Flexibility
Financial Strength and Flexibility
Slide 46: Capital Structure
Capital Structure Enterprise Value $9.3 Billion Mortgages and Secured Facilities: $1.3 Billion 14% Unsecured Debentures and Unsecured Facilities: $3.0 Billion 33% Equity Capitalization: $5.0 Billion (255.0 Million shares) Significant Shareholder 53% – Gazit Globe (31.3% as of September 30, 2018) As
Slide 47: Financial Strength and Flexibility
Financial Strength and Flexibility As at Q3 2018 2017 2016 2015 Unsecured credit facility 71% of $800M $800M $800M $800M total assets Unencumbered assets ($ billions) $7.3 $7.4 $6.6 $5.8 Unencumbered assets to unsecured debt 2.4x 2.4x 2.4x 2.3x Secured debt as % of total assets 12.6% 12.7% 12.7% 13.
Slide 48: Well-Staggered Term Debt Maturities
Well-Staggered Term Debt Maturities as of September 30, 2018 Weighted Average Interest Rate 4.3% Senior Unsecured Debentures Term to Maturity 5.1 years Mortgages 7.0% 100% of Term Debt is Fixed Rate Millions Weighted Average Effective Interest % $600 6.0% $500 5.0% $400 4.0% $300 3.0% $200 2.0% $100
Slide 49: Historical Performance: Conservative FFO Payout Ratio
Historical Performance Improving Conservative FFO Payout Ratio $300 84% 82% 82% 82% $284 82% $250 $261 $227 80% 78% $236 $220 78% $200 $215 76% 74% $150 74% 71% 72% $100 70% 68% $50 66% $- 64% 2013 2014 2015 2016 2017 YTD 2018 FFO (excl. OGLE) FFO (excl. OGLE) Payout Ratio FFO (excl $1.03 $1.04 $1.0
Slide 50: Outlook
Outlook Best in Class Portfolio: • High quality major market, Canadian retail portfolio • Defensive asset class with high barriers to entry • Industry leading same property income growth Growth – Proven Development Capability: • Internal capability with strong track record for development and re-pos
Slide 51: Outlook
Outlook Net Asset Value Growth: • Active asset management • Development, re-development and intensification FFO Growth: • Same property NOI growth • New investments (acquisitions, development and re-development) • Operating efficiencies 51
Slide 52: Contact Info