Crombie Real Estate Investment Trust · TSX:CRR.UN
Crombie Real Estate Investment Trust — Q4 2023 Earnings Presentation
32 slides from Crombie Real Estate Investment Trust's earnings presentation, Feb 21, 2024
Slide 1: Growth-focused. Resilient. Sustainable.
Growth-focused. Resilient. Sustainable. Crombie REIT Investor Presentation Q4 2023
Slide 2: Cautionary statements
Cautionary statements Forward-looking Information: These factors should be considered carefully, and a reader should not place undue reliance on the forward-looking statements. There can be no assurance that the expectations of This presentation contains forward-looking statements that reflect the c
Slide 3: A leader in Canadian real estate
A leader in Canadian real estate Strong, stable portfolio with opportunity for growth High-quality portfolio driving Strong financial position with Robust value-enhancing strong, predictable cash flow access to multiple sources of development pipeline growth capital 7completed projects $2.6B 304 pro
Slide 4: Near-term priorities
Near-term priorities Deliver strong risk-adjusted returns and accelerate AFFO and NAV growth per unit Operational Portfolio Financial Excellence Optimization Strength • Own and operate our portfolio of • Focus on entitlement, development, • Maintain strong balance sheet, ample grocery-anchored retai
Slide 5: Own & Operate
Dp Own & Operate
Slide 6: Intentionally curated, stable portfolio of high-quality properties
Intentionally curated, stable portfolio of high-quality properties Necessity-based portfolio generates stable cash flow Portfolio Fair Value Gross Leasable Area by Asset Type1 by Market Class 1 81% of AMR from necessity-based retailers5 Total $5.6B 19.2m Fair Value2 sq.ft Retail 76.9% 8.8 years weig
Slide 7: Strong economic and committed occupancy
Strong economic and committed occupancy Persistent pursuit of operational excellence 98.0% Committed Occupancy (%) 97.0% Economic Occupancy (%) 96.0% 95.0% 94.0% 93.0% 92.0% 91.0% 90.0% 7 1. Economic occupancy was impacted in Q4 2022 and Q1 2023 by the addition of approximately 304,000 square feet o
Slide 8: Retail REIT WALT of 8.8 years
Retail REIT WALT of 8.8 years Long-term leases contribute to portfolio stability Empire Other 11.3 29% of leases mature over the Empire years next five years % of total portfolio 1,600 10% Other 9% % of total portfolio 1,400 Sq. ft. in thousands 8% 4.5 1,200 7% 7% years 6% 6% 1,000 6% 5% 5% 800 5% 4
Slide 9: Well-positioned defensive portfolio
Well-positioned defensive portfolio Long-term earnings and cash flow stability Property revenue1 SANOI2 Q4 2023 Q4 2023 +3.9% +4.0% Q4 2023 $114.30m | Q4 2022 $110.06m Q4 2023 $77.52m | Q4 2022 $74.57m Renewals Renewals spreads Q4 2023 Q4 2023 246,000 sq. ft. +8.4% projects Q4 2022 in development 37
Slide 10: Optimize
<p Optimize
Slide 11: Development pipeline drives future value creation
Development pipeline drives future value creation Creating sustainable real estate where people want to live, work, shop, and play 73% Major development pipeline located in VECTOM 1 15% 1 Pipeline properties with zoning 1 10 approval 4 4 Vancouver potential to add ~4,500 units Calgary & Edmonton 5 1
Slide 12: Unlocking value with robust development pipeline
Unlocking value with robust development pipeline 26 development pipeline projects 3 near-term 105,000 sq.ft commercial GLA 960,000 sq.ft residential GLA 1,461 residential units projects1 23 Medium/long- 1,039,000 sq.ft commercial GLA 8,500,000 sq.ft residential GLA 9,830 residential units term proje
Slide 13: Substantially completed major developments
Substantially completed major developments Retail- Substantial % Commercial related Residential Residential Property CMA Completion Ownership GLA industrial GLA Units Date GLA Belmont Market1,2 Victoria 100% Q1 2020 160,000 - - - Davie Street – Retail1 Vancouver 100% Q2 2020 54,000 - - - Avalon Mall
Slide 14: Near-term major development pipeline
Near-term major development pipeline Focus on mixed-use developments in Canada's top markets Commercial Residential Residential Property CMA % Ownership GLA GLA Units The Marlstone Halifax 100% - 189,000 291 Belmont Market – Phase II Victoria 100% - 145,000 200 1780 East Broadway Vancouver 50%1 105,
Slide 15: Major development pipeline
Major development pipeline Site Size with zoning approvals # Property CMA Project Timing (acres) 1 The Marlstone Halifax 1 Near-term 2 Belmont Market - Phase II Victoria 2 Near-term zoning applications submitted 3 Broadway & Commercial1 Vancouver 2 Near-term 4 Brunswick Place Halifax 1 Medium-term 5
Slide 16: Focused on accelerating pace of entitlements
Focused on accelerating pace of entitlements Number of Estimated Residential projects total sq. ft.1,2 units1,2 Zoned 4 1,499,000 1,801 Zoning applications 4 3,090,000 3,460 submitted Total 8 4,589,000 5,261 1. Square footage and unit information presented in the table are estimates only and are sub
Slide 17: Creating value through accretive non-major developments
Creating value through accretive non-major developments1,2 Under construction Completed GLA in 2023 GLA on Estimated Estimated cost Market class Q1 Q2 Q3 Q4 Total GLA completion total cost to complete Land-use intensification 28,000 $20M $8M VECTOM 5,000 5,000 Modernizations3, Major Markets 24,000 2
Slide 18: Partners
Partners
Slide 19: Strategic partnership with Empire
Strategic partnership with Empire Capitalizing on a wide range of strategic transactions with Empire 88% 11.3years o Developing highly-tailored properties designed to meet Empire’s current and future needs o Relationship unlocks major development opportunities of retail properties weighted average o
Slide 20: Joint venture partners
Joint venture partners Leveraging and unlocking value through partnerships Zephyr – Davie Street The Village at Bronte Harbour Le Duke Vancouver, British Columbia Oakville (Toronto), Ontario Montreal, Quebec 50% Joint Venture 50% Joint Venture 50% Joint Venture 20
Slide 21: Financial Strength
Dp Financial Strength
Slide 22: Q4 2023 financial highlights
Q4 2023 financial highlights Property revenue1 Q4 2023 Increase in property revenue driven by Property revenue growth • Higher revenue from completed developments, renewals, and new leasing activity $114.30M • Offset in part by reduced revenue related to dispositions in 2022 1 for the year ended Q4
Slide 23: Financial strength and flexibility
Financial strength and flexibility $2.6B $584M 3.16x 8.03x BBB (low) Fair value of Available Interest Debt to stable trend unencumbered assets liquidity coverage1,2 adjusted EBITDA1,2 DBRS rating provides attractive unsecured debt financing As at December 31, 2023 Optimal low-cost capital structure
Slide 24: Financial strength and flexibility
Financial strength and flexibility Strategically deploying capital to build long-term value for our stakeholders For the period ended 2023 2022 2021 2020 2019 Available Liquidity 1 (millions) $584 $583 $508 $472 $449 Unencumbered Assets (billions) $2.6 $2.2 $1.8 $1.4 $1.2 Interest Coverage Ratio 2,3
Slide 25: Innovative capital funding
Innovative capital funding Strategic capital management priorities • Maintain multiple sources of both debt and equity financing • De-risk by pre-funding capital commitments • Utilize sources of capital with the most efficient cost of capital Multiple sources of capital Capital Deployment Debt Acqui
Slide 26: Well-laddered debt maturity profile
Well-laddered debt maturity profile1 Strategically deploying capital to build long-term value for our stakeholders $500 6.0% Millions $450 5.0% $400 $350 4.0% $300 $250 3.0% $200 2.0% $150 $100 1.0% $50 $0 0.0% 2024 2025 2026 2027 2028 2029 2030 2031 2032 Mortgage Maturities Unsecured Notes Joint Ve
Slide 27: Environmental, Social, & Governance
Environmental, Social, & Governance
Slide 28: Environmental, Social, and Governance (ESG) considerations
Environmental, Social, and Governance (ESG) considerations Environmental Social Governance Climate Action Diversity, Equity, & Inclusion Board Composition & Governance Leasing & Operations Building and Attracting Talent Risk Management Design & Development Health, Safety, & Well-being 28
Slide 29: Crombie's commitment to ESG
Crombie’s commitment to ESG Climate Action Plan - net zero commitment to reduce greenhouse gas emissions was validated and approved by SBTi1 • Net zero by 2050 for scopes 1, 2 and 3 • Near term reducing scope 1 and 2 emissions by a minimum of 50% by 2030 2023 GRESB results • Received Green Star for
Slide 30: Appendix
Appendix Investor Presentation
Slide 31: Calculation of non-GAAP measures
Calculation of non-GAAP measures1 Shown in thousands of Canadian dollars, except per unit amounts and as otherwise noted Debt to Trailing 12 Months Adjusted EBITDA 2023 2022 20212,3 20202,3 20192,3 Debt $ 2,468,755 $ 2,359,458 $ 2,517,392 $ 2,649,583 $ 2,416,898 Adjusted EBITDA 307,356 294,259 280,0
Slide 32: Growth-focused. Resilient. Sustainable.
Growth-focused. Resilient. Sustainable. Kara Cameron, Interim CFO Ruth Martin, Senior Director, Investor investing@crombie.ca Relations and Financial Analysis (902) 755-8100 ruth.martin@crombie.ca (902) 759-0164
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