Crombie Real Estate Investment Trust · TSX:CRR.UN
Crombie Real Estate Investment Trust — Q2 2024 Earnings Presentation
33 slides from Crombie Real Estate Investment Trust's earnings presentation, Aug 8, 2024
Slide 1: Building Together
Building Together Crombie REIT Investor Presentation Q2 2024
Slide 2: Cautionary statements
Cautionary statements Forward-looking Information: Readers are cautioned that such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements. This presentation contains forward-looking statements that reflect
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 $2.7B 304 pro
Slide 4: Building Together
Building Together Enriching communities by building spaces and value today that leave a positive impact on tomorrow
Slide 5: 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 6: Own & Operate
Dp Own & Operate
Slide 7: 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 82% of AMR from necessity-based retailers5 Total $5.7B 19.3m Fair Value2 sq.ft Retail 75.7% 8.6 years weig
Slide 8: 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% 8 1. Economic occupancy was impacted in Q4 2022 and Q1 2023 by the addition of approximately 304,000 square feet o
Slide 9: Retail REIT WALT of 8.6 years
Retail REIT WALT of 8.6 years Long-term leases contribute to portfolio stability Empire 27.9% of leases mature over Other 11.0 the next five years Empire years % of total portfolio 1,400 10% Other 9% % of total portfolio 1,200 Sq. ft. in thousands 8% 4.4 1,000 6.5% 7.0% 7% years 5.7% 6% 800 5% 5.4%
Slide 10: Well-positioned defensive portfolio
Well-positioned defensive portfolio Long-term earnings and cash flow stability Property revenue1 SANOI2 Q2 2024 Q2 2024 +3.1% +3.4% Q2 2024 $116.4M | Q2 2023 $112.9M Q2 2024 $78.3M | Q2 2023 $75.7M Renewals Renewals spreads Q2 2024 Q2 2024 293,000 sq. ft. +9.6% projects in development of AMR generat
Slide 11: Optimize
<p Optimize
Slide 12: 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 13: Unlocking value with robust development pipeline
Unlocking value with robust development pipeline 26 development pipeline projects 3 105,000 sq.ft commercial GLA 960,000 sq.ft residential GLA near-term 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 14: 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 15: Near-term major development pipeline
Near-term major development pipeline Commercial Residential Residential Property CMA % Ownership GLA GLA Units The Marlstone Halifax 100% - 189,000 291 1780 East Broadway Vancouver 50%1 105,000 626,000 970 (Broadway & Commercial) Belmont Market – Phase II Victoria 100% - 145,000 200 Total near-term
Slide 16: Major development pipeline
Major development pipeline Site Size Property CMA Project Timing (acres) 1 The Marlstone Halifax 1 Near-term with zoning approvals 2 Belmont Market - Phase II Victoria 2 Near-term 3 Broadway & Commercial1 Vancouver 2 Near-term zoning applications submitted 4 Brunswick Place Halifax 1 Medium-term 5 M
Slide 17: Focused on advancing entitlements
Focused on advancing entitlements Number of Estimated Residential projects total sq. ft.1,2 units1,2 Zoned 4 1,499,000 1,801 Zoning applications submitted 4 3,090,000 3,460 Total 8 4,589,000 5,261 1. Square footage and unit information presented in the table are estimates only and are subject to cha
Slide 18: Creating value through non-major developments
Creating value through non-major developments1,2 Non-major developments Estimated GLA on Estimated Under construction cost to completion total cost complete Land-use intensification, redevelopment, and 54,000 $35M $26M other Modernizations3 - 26M - 1. Non-major developments, including land-use inten
Slide 19: Partner
Partner
Slide 20: Strategic partnership with Empire
Strategic partnership with Empire Capitalizing on a wide range of strategic transactions 89% 11.0 years • • Developing highly-tailored properties designed to meet Empire’s current and future needs Relationship unlocks major development opportunities • Diversified portfolio including both residential
Slide 21: 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, Ontario Montreal, Quebec 50% Joint Venture 50% Joint Venture 50% Joint Venture 21
Slide 22: Financial Strength
Dp Financial Strength
Slide 23: Q2 2024 financial highlights
Q2 2024 financial highlights Property revenue1 Q2 2024 Property revenue growth Increase in property revenue driven by $116.4M • Higher revenue from renewals, contractual rent step-ups, new leasing activity, and recently completed developments Q2 2023 $ 112.9M +3.1% • Partially offset by increased am
Slide 24: Financial strength and flexibility
Financial strength and flexibility $2.7B $707m 3.47x 7.68x BBB (low) Fair value of Available Interest Debt to positive trend unencumbered assets liquidity coverage1,2 adjusted EBITDA1,2 Morningstar DBRS credit rating As at June 30, 2024 Optimal low-cost capital structure 52.1% 50.7% 48.9% Equity 57.
Slide 25: Financial strength and flexibility
Financial strength and flexibility Strategically deploying capital to build long-term value for our stakeholders For the period ended Q2 2024 2023 2022 2021 2020 Available Liquidity 1 (millions) $707 $584 $583 $508 $472 Unencumbered Assets (billions) $2.7 $2.6 $2.2 $1.8 $1.4 Interest Coverage Ratio
Slide 26: Innovative capital funding
Innovative capital funding Strategic capital management priorities 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 Deploymen
Slide 27: Well-laddered debt maturity profile
Well-laddered debt maturity profile1,2 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
Slide 28: Environmental, Social & Governance
Environmental, Social & Governance
Slide 29: Crombie's commitment to ESG
Crombie River Riders 2024 Race on the River Crombie’s commitment to ESG New Glasgow, Nova Scotia Environmental Climate Action Leasing and Operations Design and Development Social Diversity, Equity, and Inclusion Building and Attracting Talent Health, Safety, and Well-being Governance Board Compositi
Slide 30: Crombie's commitment to ESG
Crombie’s commitment to ESG Climate Action Plan (CAP) - net zero commitment to reduce greenhouse gas emissions validated and approved by SBTi1 • Net zero by 2050 for scope 1, 2, and 3 • Near term scope 1 and 2 emission reduction of 50% by 2030 CAP progress • Scope 1, 2, and 3 operational emissions d
Slide 31: Appendix
Appendix Investor Presentation
Slide 32: 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 Q2 2024 2023 2022 20212,3 20202,3 Debt $ 2,483,303 $ 2,468,755 $ 2,359,458 $ 2,517,392 $ 2,649,583 Adjusted EBITDA 323,519 307,356 294,2
Slide 33: Building Together
Building Together Kara Cameron, CFO Ruth Martin, Senior Director, Investor investing@crombie.ca Relations & ESG Reporting (902) 755-8100 ruth.martin@crombie.ca (902) 759-0164
Crombie Real Estate Investment Trust — Q2 2024 Earnings Presentation on 6ix