Granite Real Estate Investment Trust · TSX:GRT.UN
Granite Real Estate Investment Trust — Investor Presentation (November 2021)
22 slides from Granite Real Estate Investment Trust's investor presentation, November 2021
Slide 1: Investor Presentation
INVESTOR PRESENTATION | August 2020 INVESTOR PRESENTATION | November 2021
Slide 2: Presentation of Certain Information
PRESENTATION OF CERTAIN INFORMATION • Unless otherwise indicated in this presentation, all information is presented as of September 30, 2021 and all financial information that is identified as current refers to the period ending September 30, 2021. For definitions of certain non-IFRS measures used i
Slide 3: Granite Highlights
GRANITE HIGHLIGHTS ORGANIZATIONAL PRINCIPLES PORTFOLIO OVERVIEW FINANCIAL PERFORMANCE Long-term total return focused 114 income-producing properties + 78% LTM AFFO POR 12 development properties/land Conservative and flexible capital 23% net leverage ratio 53.3M square feet with 99.2% structure occup
Slide 4: Granite Highlights – ESG+R
GRANITE HIGHLIGHTS – ESG+R ENVIRONMENTAL SOCIAL GOVERNANCE RESILIENCE Promote energy efficiency Promote employee well 100% independent Board Program aligned with Task and sustainable practices being excluding CEO Force on Climate-Related at our properties Financial Disclosures (“TCFD”) framework Re
Slide 5: ESG – GRESB 2021
ESG – GRESB 2021 Granite ranked 1st in the North American Industrial GRESB public disclosure group Granite 3rd and sole Canadian entity in the North American Industrial peer group for Standing Investments November 2021 5
Slide 6: Inaugural $500M Green Bond Use of Net Proceeds
ESG – INAUGURAL $500M GREEN BOND USE OF NET PROCEEDS (AS AT DEC 31, 20201) Property Eligible Green Certification Date Allocation 3501 North Lancaster Hutchins Rd, Lancaster, TX, USA LEED Silver Green Building Mar 1/19 $106.1 Oude Graaf 15, Weert, NED BREEAM “Excellent” Green Building May 1/20 31.9 1
Slide 7: Granite's Evolution
GRANITE’S EVOLUTION Investment Property Summary Then - December 31, 2011 Now - September 30, 2021 0.7M SF 13.8M SF Flex/Office2 Multi-Purpose2 14.1M SF $151M $802M 5.3M SF Special Purpose 38.5M SF Industrial/Warehouse2 $1,089M Distribution/E-commerce3 $923M $1.9B 8.9M SF $7.3B $4,932M Value Special
Slide 8: Portfolio Transformation Strategy
PORTFOLIO TRANSFORMATION STRATEGY Invest selectively/opportunistically in Target markets with superior Focus on modern facilities that meet evolving property types and markets economic conditions and market the demands of E-Commerce and benefiting from technological fundamentals traditional distribu
Slide 9: Financial Performance
FINANCIAL PERFORMANCE Historical Operating Performance ($M) Distributions and Payout Ratios 91% 82% 81% $381 78% 77% 71% $340 74% 3.10 79% 73% 78% 3.00 $294 78% 71% 2.90 $274 $265 2.80 68% 68% 2.72 $245 $248 $237 2.60 $223 $214 $216 $216 $204 2.43 $188 $187 $183 $181 $185 2.30 $173 2.21 $158 $162 $1
Slide 10: GRT Historical Performance
GRT HISTORICAL PERFORMANCE Total Return vs TSX Composite & TSX Capped REIT Indices Cumulative Total Return % Annualized Total Return % 370% COVID-19 190% 345% 320% 170% 295% 150% 270% 245% 130% 220% 110% 195% 170% 90% 145% 120% 70% 95% 50% 70% 45% 30% 20% 10% -5% -10% 1Yr 2Yr 3Yr 5Yr Granite REIT TS
Slide 11: Globally Diversified Portfolio
GLOBALLY DIVERSIFIED PORTFOLIO 6 countries – 126 properties – 53.3 million square feet GERMANY 11 properties 3.5M SF CANADA 31 properties 5.9M SF NETHERLANDS 13 properties 1 2 4.0M SF 4 UNITED STATES 61 properties CZECH 32.1M SF REPUBLIC AUSTRIA 1 property 9 properties 0.3M SF 7.5M SF Special Purpos
Slide 12: Portfolio Segmentation by Geography
PORTFOLIO SEGMENTATION BY GEOGRAPHY By Income Producing Property Fair Value By Annualized Revenue $55.0M $53.9M $1,095M 16% 15% 15% 20% $1,430M $349.7M 11% $769M $7.1B $61.7M 18% $3,804M $179.1M 51% 54% By Square Feet By Number of Income-Producing Properties 7.8M 11% 5.9M 15% 24 21% 30 26% 7.5M 14%
Slide 13: IPP Portfolio Segmentation by Category
IPP PORTFOLIO SEGMENTATION BY CATEGORY Distribution/E-commerce Properties Industrial/Warehouse 71 Properties 32 Properties 38.5M SF (∼542K SF/property) 5.3M SF (∼165K SF/property) $4.9B Fair Value (∼$128/SF) $0.9B Fair Value(∼$174/SF) WALT: 4.2 years WALT: 6.4 years $221.9 M Annualized Revenue(∼$5.7
Slide 14: Development and Expansion Pipeline
DEVELOPMENT AND EXPANSION PIPELINE Altbach, Germany ~0.3M SF Fort Worth, Texas ~0.6M SF Nashville area, Tennessee ~1.3M SF Mississauga, Ontario (expansion) Houston, Texas (Phase I and Phase II) Indiana ~1.0M SF ~0.1M SF ~1.4M SF Active development program to enhance total return & platform value Nov
Slide 15: Lease Expiration Profile
LEASE EXPIRATION PROFILE Outstanding Lease Expiries by Annualized Revenue Annualized Overall Revenue $349.7M WALT 5.8 Years Occupancy 99.2% 110 44.2% 100 Canada USA Austria Europe 90 Annualized Revenue (C$M) 80 70 60 18.4% 50 14.6% 40 6.5% 9.2% 30 7.1% 20 0.0% 10 0 2021 2022 2023 2024 2025 2026 2027
Slide 16: High Quality & Creditworthy Tenant Base
HIGH QUALITY & CREDITWORTHY TENANT BASE Other Tenants Annualized Credit Top 10 Tenants GLA % WALT Revenue % Rating1,2 Magna 31% 24% 4.2 A- Amazon 5% 5% 17.4 AA True Value Company 3% 3% 19.4 NR ADESA 2% —% 7.8 NR Restoration Hardware 2% 2% 6.6 Ba2 Light Mobility Solutions Gmbh 2% 1% 2.2 NR Hanon Syst
Slide 17: Balance Sheet Strength
BALANCE SHEET STRENGTH Capitalization Debt Maturity Profile Unit Price (10/29/2021) $100.32 $1,200 Units Outstanding 65.7 998 Weighted average debt term-to-maturity – 5.8 years Market Capitalization $6,590 $1,000 Weighted average cost of debt – 1.81% Credit Facility $0 $800 Debentures 3.873% due Nov
Slide 18: Credit Metrics Summary
CREDIT METRICS SUMMARY • The following table was sourced from DBRS’ North American Real Estate Peer Comparison dated August 26, 2021. DBRS North American Real Estate Peer Comparison1: Peer Group Granite Rank Granite2 Average Among Peer Group Total Debt to Capital 33.0% 49.8% #3 Total Debt to EBITDA
Slide 19: Financial Flexibility & Target Long-Term Leverage Ratio
FINANCIAL FLEXIBILITY & TARGET LONG-TERM LEVERAGE RATIO • Strong balance sheet provides pathway for measured growth with potential for further diversification and optimization of the portfolio • Target long term net leverage ratio of ∼30 - 35% while maintaining patient and opportunistic approach to
Slide 20: Canadian Real Estate Debt Comparison
CANADIAN REAL ESTATE DEBT COMPARISON1 Total Debt-to-Capital Total Debt-to-EBITDA 90% 19.0x 80% 17.0x 70% 15.0x 13.0x 60% 11.0x 50% 9.0x 40% 7.0x 30% 5.0x 20% 3.0x 10% 1.0x Granite has leading debt metrics within DBRS1 universe of Canadian Real Estate entities 1 Source: DBRS North American Real Estat
Slide 21: Canadian Real Estate Debt Comparison
CANADIAN REAL ESTATE DEBT COMPARISON1 EBITDA Interest Coverage Distributions/Cash Flow from Operations2 8.0x 1.40 7.0x 1.20 6.0x 1.00 5.0x 0.80 4.0x 0.60 3.0x 0.40 2.0x 1.0x 0.20 0.0x 0.00 Granite has leading cash flow coverage metrics among DBRS1 universe of Canadian Real Estate entities 1 Source:
Slide 22: Leadership Team
LEADERSHIP TEAM Kevan Gorrie Teresa Neto • President and Chief Executive Officer • Chief Financial Officer • Over 20 years of real estate experience in Canada, • Over 30 years of varied business experience, the United States and Germany. including ∼10 years as a CFO for publicly-traded • Previously
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