Choice Properties Real Estate Investment Trust · TSX:CHP.UN
Choice Properties Real Estate Investment Trust — Q3 2024 Earnings Presentation
66 slides from Choice Properties Real Estate Investment Trust's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter Report 2024
2024 Third Quarter Report Places People Thrive ™
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this document constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Choice Properties REIT’s ("Choice Properties” or the "Trust”) future outlook and anticipated events or resu
Slide 3: Q3 2024 Financial and Operating Performance
Q3 2024 Financial and Operating Performance Q3 2024 Q2 2024 Q32023 FFO(1) $0,258 $0,255 $0,250 /unit /unit /unit +1.2% +3.2% AFFO™ $0,229 $0,244 $0,189 /unit /unit /unit -6.1% +21.2% Occupancy 97.7% 98.0% 97.7% -0.3% -- Same-Asset NOI, Cash Basis(1) $239.1 M $240.9M $232.2M -0.7% +3.0% Adjusted Debt
Slide 4: Contents
Contents ••Purpose-Driven Strategy Canada’s Premier REIT ••Proven Strategic Framework ••Our Near-Term Focus ••3 Strategic Asset Classes ••Winning Retail Portfolio Market Leading Portfolio ••High-Demand Industrial ••Mixed-Use & Residential • Developing with Purpose Transformational Development ••Deve
Slide 5: Canada's Premier REIT
Canada’s Premier REIT : . ae —— _ : ne. ChoiceProperties : eSelden Wir frere <i
Slide 6: Canada's Premier REIT
Canada’s Premier REIT Leading where it matters most Largest in Canada(1) Unmatched Necessity- Strategic Relationship with Based Portfolio Canada’s Largest Retailer 700+ High-quality 82% Necessity-based 57% Loblaw tenancy(3) properties retail portfolio(2) 3 Strategic asset 38M Grocery-anchored Relati
Slide 7: Purpose-Driven Strategy
Purpose-Driven Strategy Choice Properties is a leading Real Estate Investment Trust that creates enduring value through places where people thrive. We are more than a national owner, operator and developer of high-quality commercial and residential real estate. We believe in creating spaces that enh
Slide 8: Proven Strategic Framework
Proven Strategic Framework Creating Preservation Stable and growing Increases in NAV and G O ALS Enduring Value: of capital cash flows distributions overtime 1 Maintaining Care market-leading portfolio P R IO R IT IE S Ownership VALU ES Sustaining 2 operational excellence Respect CORE Delivering 3 V
Slide 9: Our Near-Term Focus
Our Near-Term Focus Priorities 1 Maintaining 2 Sustaining 3 Delivering market-leading operational development portfolio excellence pipeline Maximizing value in our Executing on our near-term Building for core asset classes Delivering best-in-class Industrial opportunity the Future Improving quality
Slide 10: Market Leading Portfolio
Market Leading Portfolio ae ChoiceProperties
Slide 11: 3 Strategic Asset Classes
3 Strategic Asset Classes A high-quality national footprint where Canadians live and work 705 Income Producing Properties 66.2M Square Feet $15e9B Fair Value(1) Mixed-Use & Portfolio Mix by Properties Retail Industrial Residential Asset Class(2) Under Predominately Flexible well-located Transit orie
Slide 12: Percentage of NOI by province
3 Strategic Asset Classes Percentage of NOI by province(1) 97.7% Total Occupancy (1) Calculated as a % of total NOI on a proportionate share cash basis for the three months ended September 30, 2024. Q3 2024 • 3 Strategic Asset Classes 12
Slide 13: Stable and Consistent Occupancy
Stable and Consistent Occupancy Period-End Occupancy Occupancy by Asset Class Retail 97.6% Industrial 98.1% Mixed-Use & 94.7% Residential(1) Total 97.7% (1) Occupancy represents retail and office portion of mixed-use properties; residential units are excluded. Q3 2024 • 3 Strategic Asset Classes 13
Slide 14: Long-Term Leases
Long-Term Leases High quality tenants provide cash flow stability Lease Expiry by Year(1) Weighted Average Lease Term Loblaw Ancillary Total 6.2 5.4 5.9 years years years (1) Lease expiry by year excludes ground leases
Slide 15: Winning Retail Portfolio
Winning Retail Portfolio Necessity-based, well-located properties supported by strong anchor tenants
Slide 16: Winning Retail Assets
Winning Retail Assets Predominantly necessity-based grocery anchored retail portfolio 44.5M 572 Square Feet Properties $11.2B 97.6% Fair Value(1) Occupancy (1) Fair value of investment properties is shown on a proportionate share basis. 607 cundles Road East Barrie, ON
Slide 17: Strong Necessity-Based Retail Anchor Tenants
Strong Necessity-Based Retail Anchor Tenants Reliable and stable cash flow +65% of retail revenue from Loblaw banners(1) +68% of retail revenue from grocery and pharmacy(1) +82% of retail revenue from necessity-based retail(1) (1) Calculated on segment's annualized gross rental revenue on a proporti
Slide 18: Retail Footprint
Retail Footprint(1) 85% of properties located at key intersections Square Footage Necessity- NOI(2) (M) based(3) . Neighbourhood 39.4 89% 89% Centres . Power Centres 5.1 11% 34% Total 44.5 82% (1) Calculated as a % of the retail segment's total GLA as at September 30, 2024. (2) Calculated as a % of
Slide 19: Strong Tenant Retention
Strong Tenant Retention Reliable and stable cash flow Lease Expiry by Year(1) 97.6% in-place occupancy •• Staggered maturities •• High probability of renewal •• Strong covenant tenants 1) Lease expiry by year excludes ground leases Q3 2024 • Winning Retail Portfolio 19
Slide 20: High-Demand Industrial
High-Demand Industrial High-quality generic industrial assets in key distribution markets
Slide 21: High-Demand Industrial
High-Demand Industrial Flexible well-located industrial portfolio 19.9M 122 Square Feet Properties $3.9B 98.1% Fair Value(1) Occupancy (1) Fair value of investment properties is shown on a proportionate share basis.
Slide 22: High-Demand Industrial
High-Demand Industrial(1) 87%of industrial assets are generic and nigh quality Square Footage % of Total (M) • Distribution 17.2 87% Warehouse(2) 2.7 13% Total GLA 19.9 (1) Calculated as a % of the industrial segment's total GLA as at September 30, 2024. (2) Warehouse includes certain Small Bay asse
Slide 23: Resilient Industrial Tenant Base
Resilient Industrial 30% Tenant Base Loblaw gross industrial revenue(1) Top 10 Industrial Tenants(1) 1 Loblaw 2 Amazon 3 Canada Cartage 4 Wonderbrands 5 Pet Valu 6 NFIIPD 7 Uline Canada Corporation 8 Canadian Tire 9 Kimberly-Clark 10 Alberta Gaming, Liquor and Cannabis (1) Calcula ted on segment's a
Slide 24: Significant Embedded Growth
Significant Embedded Growth Major Market Breakdown Choice Market Avg. Rent(1) $9.68 Vancouver $13.91 Avg. Rent(2) $20.28 Choice avg. in-place rent(1) based on Choice portfolio Edmonton $8.92 $10.20 Calgary $8.41 $11.39 $15.67 Greater Toronto Area $9.86 $17.56 Canadian Market avg. rent(2) Greater Mon
Slide 25: Mixed-Use & Residential
Mixed-Use & Residential Purpose-built rental in key markets ChoiceProperties
Slide 26: Mixed-Use & Residential
Mixed-Use & Residential Transit oriented mixed-use and residential portfolio 1.8M 11 923 Square Feet(1) Properties Residential Units S0.9B 94.7% FairValue(2) Occupancy(3) (1) 1.8 million sq. ft. of GLA includes 0.7 million sq. ft. associated with Choice Properties' 923 residential units. (2) Fair va
Slide 27: Mixed-Use & Residential Properties
Mixed-Use & Residential Properties Liberty House The Brixton Mount Pleasant Village Element Residential Residential Residential Residential Toronto, ON Toronto, ON Brampton, ON Ottawa, ON Units 440 units Units 397 units Units 302 units Units 252 units Ownership 50% Ownership 50% Ownership 50% Owners
Slide 28: Transformational Development
Transformational Development
Slide 29: Developing with Purpose
Developing with Purpose Diversifying our tenant base while delivering steady growth Retail Intensifications Near-Term Industrial Mixed-Use & Residential Delivering steady growth and Capitalizing on market trends with Transforming communities with maintaining portfolio quality 6.0M sq. ft of high-qua
Slide 30: Development Pipeline Positioned for Growth
Development Pipeline Positioned for Growth Driving near, medium and long-term value 19.2m sq.ft. Sq. ft (1) In Planning Zoned & Ready Active Total Retail - 0.3M 0.3M > 0.6M Industrial - 4.2M 1.8M ► 6.0M Mixed-Use & 9.0M 3.6M - ► 12.6M Residential Total 9.0M 8.1 M 2.1 M ► 19.2M (1) At the Trust’s sha
Slide 31: On the Move
On the Move Strengthening our portfolio with active development projects Projects under Sq. ft. upon Total active development completion(1) investment(1) Retail 20 0.3M $112M Industrial 2 1.8M $360M Residential(2) 1 - $2M Total 23 2.1 M $474M (1) Estimated upon completion, at the Trust's share. Acti
Slide 32: Industrial Development Pipeline
Industrial Development Pipeline Immense near-to-medium term opportunity within active and in planning developments Choice Caledon Business Park (Buildings A &H) 6.0M sq. ft. zoned(1) Caledon, ON 2 Projects 345 Net Developable Acres(1)(2) 0.9M 2024 completion sq. ft.(1)(3) 5.1 M 2025+ completions sq.
Slide 33: Mixed-Use and Residential Development Pipeline
Mixed-Use and Residential Development Pipeline Significant future growth Golden Mile 25 Photography Dr. 13 Toronto, ON Toronto, ON Projects in planning 12.6M Potential sq. ft. Density(1) Potential 3,597 total units 2,356 total units 15,327 Residential Units(1) 19 acres 7.7acres (1) At the Trust's sh
Slide 34: Prudent Financial Management
Prudent Financial Management
Slide 35: Measuring Financial Success
Measuring Financial Success Proven Stability. Positioned for Growth. PRIORITIES Stable and growing cash flows FINANCIAL GOALS from existing portfolio • Maximizing value in our core asset classes 1 Maintaining • Improving quality through balanced capital recycling Preservation • Delivering best-in-cl
Slide 36: Significant Financial Capacity
Significant Financial Capacity BBB (High)/+ 1.7x below peer average(2) DBRS/S&P Rating $12.9B unencumbered assets(1) $1.5B unused portion of 2018 2019 2020 2021 2022 2023 Q3 2024 revolving credit facility(1) Adjusted Debt to EBITDAFV, net of cash(3)(4) (1) As at September 30, 2024. (2) Source: Q2 20
Slide 37: Capital Structure Targets
Capital Structure Targets Maintaining financial stability Mortgages and GL3 2024 Target Range 10% $1.8B Secured Facilities(4) Unused portion of Unsecured $5.4B $1.5B > $1.0B Debentures revolving credit facility Adjusted Debt to EBITDAFV(1) 7.0x 7.5x 30% Unsecured Credit Facility $0.0B ($I.5B total c
Slide 38: Debt Maturity Profile
Debt Maturity Profile(1) 4.17% 6.2 Well-balanced debt ladder e Yars WAIR(2) WATM(2) $1,000 (1) As at September 30, 2024, on a proportionate share basis. (2) Reflects senior unsecured debentures and fixed-rate secured debt. Q3 2024 • Debt Maturity Profile 38
Slide 39: Environmental, Social & Governance Program
Environmental. Social & Governance Prog ra m
Slide 40: Building Healthy, Resilient Communities
Building Healthy, Resilient Communities Commitment to ESG practices is ESG program is focused integral to our purpose of around two pillars which creating enduring value. align with stakeholder interests: Aspire to develop healthy, resilient communities through our Fighting dedication to social, eco
Slide 41: Leading by Example in ESG
Leading by Example in ESG Read our ESG Report to learn more about our sustainability strategy, initiatives, and achievements www.choicereit.ca/sustainability A close-up of solar panels Description automatically generated Q3 2024 • Leading by Example in ESG 41
Slide 42: Appendices
Appendices ChoiceProperties
Slide 43: Transformational Industrial Development
Transformational Industrial Development
Slide 44: Choice Caledon Business Park, Caledon, ON
Choice Caledon Business Park • 380-net acres of industrial Caledon, ON development land • Excellent access to major highways and intermodals • Strong labour pool • Multi-phase industrial park • New generation logistic space • Phase 1 underway: 90-acre ground lease with Loblaw • Partner: Rice Group Q
Slide 45: Mixed-Use & Residential in Planning
Mixed-Use & Residential in Planning
Slide 46: Grenville & Grosvenor, Toronto, ON
Grenville & Grosvenor • 1-acre site in Downtown Toronto, ON Toronto • 700+ units • Provincial Affordable Housing Lands Program • Transit accessible • Partner: Greenwin 99 97 91 Walk Score Transit Score Bike Score Q3 2024 • Appendices • Mixed-Use & Residential in Planning 46
Slide 47: Golden Mile, Toronto, ON
• 19-acre site in Toronto Golden Mile - Toronto, ON • Adjacent to two new transit stations along Eglinton Crosstown LRT • Large mixed-use community • High density residential and retail Q3 2024 • Appendices • Mixed-Use & Residential in Planning 47
Slide 48: Golden Mile Phase 1, Toronto, ON
Golden Mile Phase 1 Toronto,ON • 1 rental tower and 2 condo towers • 1,350 units • Mixed-use • Community innovation district • Partner: Daniels Q3 2024 • Appendices • Mixed-Use & Residential in Planning 48
Slide 49: 720 Broadview Ave., Toronto, ON
720 Broadview Ave. • 3.3-acresite Toronto, ON • 500 units • 1 residential building • Directly across from Broadview TTC subway station • New grocery store • Dedicated public park Q3 2024 • Appendices • Mixed-Use & Residential in Planning 49
Slide 50: 2280 Dundas St. W, Toronto, ON
2280 Dundas St. W - Toronto, ON Q3 2024 • Appendices • Mixed-Use & Residential in Planning 50
Slide 51: 2280 Dundas St. W, Toronto, ON
2280Dundas st.w • 13-acre site in Downtown Toronto, ON Toronto • Major transit hub (TTC, GO Train, UP Express) • Large mixed-use community • High density residential, retail and office Q3 2024 • Appendices • Mixed-Use & Residential in Planning 51
Slide 52: Parkway Forest Dr., Toronto, ON
Parkway Parkway Forest Dr. Forest Dr. • 3-acre site Toronto,ON Toronto, ON • 382 units • 1 residential building • Close proximity to Don Mills TTC subway station • Partner: Woodbourne Canada Q3 2024 • Appendices • Mixed-Use & Residential in Planning
Slide 53: 25 Photography Dr., Toronto, ON
25 Photography Dr. - Toronto, ON Q3 2024 • Appendices • Mixed-Use & Residential in Planning 53
Slide 54: 25 Photography Dr., Toronto, ON
25 Photography Dr. • 7.7 -acre site Toronto,ON • 7 mixed-use buildings • Major transit hub (Eglinton Crosstown LRT, GO Train, UP Express) • Community integration Q3 2024 • Appendices • Mixed-Use & Residential in Planning 54
Slide 55: 685 Warden Ave., Toronto, ON
685 Warden Ave. • 6.5-acresite Toronto, ON • 2,100 units • 6 residential buildings • Directly adjacent to Warden TTC subway station • Dedicated public park Q3 2024 • Appendices • Mixed-Use & Residential in Planning 55
Slide 56: 985 Woodbine Ave., Toronto, ON
985 Woodbine Ave. - Toronto, ON Q3 2024 • Appendices • Mixed-Use & Residential in Planning 56
Slide 57: 985 Woodbine Ave., Toronto, ON
985 Woodbine Ave. • 1.7-acre site in Toronto, ON Downtown Toronto • Two mid-rise rental residential buildings • 622 units • Directly adjacent to Woodbine TTC subway station • Grocery retail at-grade Q3 2024 • Appendices • Mixed-Use & Residential in Planning 57
Slide 58: 449 Carlaw Ave., Toronto, ON
• 5.6-acre site • 3 mixed-use buildings • 1,080 units • Transit-oriented community • Future stop on Ontario Line 449 Car law Ave. - Toronto, ON Q3 2024 • Appendices • Mixed-Use & Residential in Planning 58
Slide 59: North Road, Coquitlam, BC
North Road • 7.8-acre site in city Coquitlam, BC centre • Access to two lines of Vancouver SkyTrain • Revitalization into mixed-use community • High density residential and retail Q3 2024 • Appendices • Mixed-Use & Residential in Planning 59
Slide 60: Immense Value Opportunity
Immense Value Opportunity Choice Properties continues to grow and create value through its pipeline of potential commercial and mixed-use developments.
Slide 61: Toronto
Toronto • 52 properties in the City of Toronto • Significant long-term development potential Retail 40 Industrial 2 Mixed-use & 5 Residential • PUD 5 52 Q3 2024 • Appendices • Immense Value Opportunity 61
Slide 62: Leslie St., Toronto, ON
17 Leslie 17 Leslie St. • 6-acre site Toronto, St.Toronto,ON • Close proximity to Queen Streetcar ON Q3 2024 • Appendices • Immense Value Opportunity 62
Slide 63: Lower Jarvis St., Toronto, ON
10 Lower Jarvis St. 10 Lower Jarvis St. • 4-acresite Toronto, ON • Core downtown Toronto, ON location Q3 2024 • Appendices • Immense Value Opportunity 63
Slide 64: Greater Vancouver Area
Greater Vancouver Area • 19 properties in the GVA • Significant long-term development potential. Retail 16 Industrial 3 19 Q3 2024 • Appendices • Immense Value Opportunity 64
Slide 65: Montréal
Montréal Montréal • 38 properties in the GMA • Significant long-term development potential Retail 36 Industrial 2 38 Q3 2024 • Appendices • Immense Value Opportunity 65
Slide 66: Choice Properties
ChoiceProperties
Choice Properties Real Estate Investment Trust — Q3 2024 Earnings Presentation on 6ix