First Capital Real Estate Investment Trust · TSX:FCR.UN
First Capital Real Estate Investment Trust — Investor Presentation (January 2020)
55 slides from First Capital Real Estate Investment Trust's investor presentation, Jan 2, 2020
Slide 1: Investor Presentation Q3 2019
Q3 2019 Investor Presentation
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 REIT (“Com
Slide 3: Company Snapshot
COMPANY SNAPSHOT (TSX: FCR.UN) One of Canada’s leading, developers, owners and operators of mixed-used urban real estate in Canada’s most densely populated centres 166 25.1m sf Properties Super of gross leasable area (22.9m sf at FCR share) urban $10.1b Market focus across Canada $4.8b Total enterpr
Slide 4: Super Urban Investment Strategy
SUPER URBAN INVESTMENT STRATEGY Two-part strategy: 1. Continue to invest in high-quality, mixed-use properties with the focus on building large positions in targeted high growth urban neighbourhoods 2. Complete strategic dispositions to de-lever post the share repurchase transaction, and to provide
Slide 5: Super Urban Neighbourhoods
SUPER URBAN NEIGHBOURHOODS Creating high quality, super urban 300,000 neighbourhoods while enhancing +20% demographic profile 280,000 +20% 250,000 207,000 Q4 Q4 Q3 2016 2018 2019 2021 5 KM Population First Capital 5
Slide 6: Canada's Super Urban Portfolio
Canada's Super Urban Portfolio First Capital 6
Slide 7: Strong Growth in NAV per Share
STRONG GROWTH IN NAV PER SHARE +6.5% CAGR since January 1, 2016 $22.59 $23.08 $21.85 $19.53 $18.25 2015 2016 2017 2018 YTD 2019 First Capital 7
Slide 8: Super Urban Neighbourhoods in Canada's Largest Cities
SUPER URBAN NEIGHBOURHOODS IN CANADA’S LARGEST CITIES Vancouver, Calgary, Western Canada Central Canada Toronto Eastern Canada Montreal, Ottawa Edmonton Properties 47 Properties 68 Properties 51 GLA 7.0m GLA 9.1m GLA 6.8m Fair Value % 31% Fair Value % 50% Fair Value % 19% 8% 12% 10% 2% 45% 12% 5% 3%
Slide 9: North American Leader in Population Density
NORTH AMERICAN LEADER IN POPULATION DENSITY FCR Portfolio Demographic Metrics vs. its Peer Group: Q3 2019 * US $120,000 $118,000 280,000 $100,000 153,000 111,000 US Peers ** FCR Q3 **US Peers ***CDN Peers FCR Q3 **US Peers ***CDN Peers 2019 2019 5 KM Population 5 KM Average Household Income As of Se
Slide 10: Super Urban Neighbourhoods
SUPER URBAN NEIGHBOURHOODS >90% Public Transit Of portfolio within 5-minute walk of public transit 78 Walk Score Average walk score for our portfolio = ‘Very Walkable’ First Capital 10
Slide 11: Premier Portfolio: Highest Rents in Sector
PREMIER PORTFOLIO HIGHEST RENTS IN SECTOR FCR rents are 26% higher than peer group average 2.4% FCR Average rent growth 5 year CAGR $20.65 $19.65 $18.59* Peer Group Average $16.34 $15.44 $14.78* $13.61 1.5% Peer Average rent growth 5 year CAGR 2015 2016 2017 2018 2019 Q3 2019 Base Rent *Crombie and
Slide 12: Industry Leading Performance: Same Property NOI Growth
INDUSTRY LEADING PERFORMANCE Total Same Property NOI Growth 5.0% 4.0% 3.2% 10 Year Average 3.0% 2.9% 2.0% 1.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2019 First Capital 12
Slide 13: Industry Leading Performance: Lease Renewal Rate Increases
INDUSTRY LEADING PERFORMANCE 12.0% Lease Renewal Rate Increases 10.9%* 10.0% 9.5% 10 Year Average 8.0% 6.0% 4.0% 2.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2019 Represents increase on total portfolio basis. Includes renewal options, and contractual fixed rate renewals. * The Company
Slide 14: Strategic and Diversified Retail Tenant Mix
STRATEGIC AND DIVERSIFIED RETAIL TENANT MIX # of Stores % of Rent Grocery Stores 133 17.4% Medical, Professional & 1,459 15.1% Personal Services Restaurants & Cafes 1,004 14.2% Pharmacies 132 9.2% Banks & Credit Unions 210 8.4% Fitness Facilities 89 3.8% Liquor Stores 101 3.4% Daycare & Learning 102
Slide 15: Top 20 Retail Tenants
TOP 20 RETAIL TENANTS Contribute 45% of annualized minimum rent (AMR) Investment Investment Rank # Tenant AMR Grade Rank # Tenant AMR Grade 1. 10.1% * 11. 1.4% 2. 6.0% 12. 1.3% 3. 3.7% 13. 1.2% 4. 2.9% 14. 1.2% 5. 2.5% 15. 1.0% ** - 6. 2.0% 16. 1.0% 7. 1.9% 17. 1.0% 8. 1.8% - 18. 1.0% - 9. 1.7% 19.
Slide 16: Super Urban Neighbourhoods
Super Urban Neighbourhoods 16
Slide 17: Developing in Super Urban Neighbourhoods
DEVELOPING IN SUPER URBAN NEIGHBOURHOODS $125m of Development Spend YTD 2019 Future Pipeline: 24m sf= 2m sf Commercial + 22m sf Residential Yorkville Village Assets Toronto, ON 3080 Yonge Street Toronto, ON Dundas & Auckland Toronto, ON King High Line Toronto, ON Edmonton Brewery District Edmonton,
Slide 18: Bloor-Yorkville
Super Urban Neighbourhood Bloor-Yorkville Toronto, ON Property Statistics 5KM AVG 2019 Estimates Population 721,800 Average Household Income $132,200 Gross Leasable Area Yorkville Village 315,000 sf One Bloor East 85,000 sf Hazelton Hotel (FCR share) 40,000 sf Total Bloor/Yorkville 440,000 sf First
Slide 19: Super Urban Neighbourhood - Bloor-Yorkville
SUPER URBAN NEIGHBOURHOOD - BLOOR-YORKVILLE Recently Completed Re-Development - Yorkville Village, Toronto Avenue Road New Yorkville Entrance Interior Mall Events Program at Yorkville First Capital 19
Slide 20: Bloor-Yorkville: Hazelton Hotel
Super Urban Neighbourhood Bloor-Yorkville Hazelton Hotel, Toronto, ON Room Count 77 Retail GLA 11,250 sf FCR Interest 60% Toronto’s First and Top Performing 5 Star Hotel First Capital 20
Slide 21: Super Urban Neighbourhood - Bloor-Yorkville
SUPER URBAN NEIGHBOURHOOD - BLOOR-YORKVILLE Recent Acquisition:140 Yorkville Avenue, Mixed-Use Development Bloor-Yorkville 140 Yorkville Avenue Yorkville Village – The Lane Hazelton Hotel First Capital 21
Slide 22: Bloor-Yorkville: Yonge and Bloor
Super Urban Neighbourhood Bloor-Yorkville Yonge and Bloor, Toronto, ON First Capital 22
Slide 23: Bloor-Yorkville: One Bloor East
Super Urban Neighbourhood Bloor-Yorkville One Bloor East, Toronto, ON Property Statistics Retail GLA 85,000 sf Commercial Parking 52 Stalls Key Tenants First Capital 23
Slide 24: One Bloor East: McEwan 2019 Opening
Super Urban Neighbourhood Bloor-Yorkville One Bloor East: McEwan 2019 Opening (17,000 sf) First Capital 24
Slide 25: One Bloor East: Chick-fil-A Flagship
Super Urban Neighbourhood Bloor-Yorkville One Bloor East: Chick-fil-A Canadian Flagship September 2019 Opening First Capital 25
Slide 26: Future Mixed-Use Project: Yonge & Roselawn
Current Super Urban Neighbourhood Future Mixed-Use Project Yonge & Roselawn, Toronto, ON Demographics 5KM AVG 2019 Estimates Population 480,000 Average Household Income $188,400 First Capital 26
Slide 27: Planned Mixed-Use Project: Yonge & Roselawn
Future Super Urban Neighbourhood Planned Mixed-Use Project Yonge & Roselawn, Toronto, ON First Capital 27
Slide 28: Future Mixed-Use Neighbourhood: Christie Cookie Site
Master Planned Super Urban Neighbourhood Future Mixed-Use Neighbourhood Former Christie Cookie Site, Toronto, ON 28 ACRES Demographics 5KM AVG 2019 Estimates Population 269,200 Average Household Income $113,500 50% Non-Managing Partner First Capital 28
Slide 29: Future Mixed-Use Neighbourhood: Planned GLA
Master Planned Super Urban Neighbourhood Future Mixed- Use Neighbourhood Former Christie Cookie Site, Toronto, ON Planned Gross Leasable Area Retail GLA 500,000 sf Office GLA 500,000 sf Residential GLA 6,000,000 sf 25 % of Site Open Acres First Capital 29
Slide 30: Mount Royal Village
Calgary's Premier Super Urban Neighbourhood Mount Royal Village Calgary, AB Demographics 5KM AVG 2019 Estimates Population 231,300 Average Household Income $147,000 4.1 Acreage 380,000 sf Gross Leasable Area First Capital 30
Slide 31: Mount Royal Village: Redevelopment Phase Completed
Before Current Calgary's Premier Super Urban Neighbourhood Mount Royal Village Calgary, AB Redevelopment Phase Completed Gross Leasable Area 118,000 sf First Capital 31
Slide 32: Mount Royal Village: Development Nearing Completion
Current Calgary's Premier Super Urban Neighbourhood Mount Royal Village Calgary, AB Development Nearing Completion Gross Leasable Area 98,300 sf First Capital 32
Slide 33: Liberty Village Assets
Super Urban Neighbourhood Liberty Village Assets Toronto, ON Demographics 5KM AVG 2019 Estimates Population 546,500 Average Household Income $110,900 Acreage 14.1 Gross Leasable Area 815,000 sf First Capital 33
Slide 34: Liberty Village Assets: King High Line Phase
Super Urban Neighbourhood Liberty Village Assets King High Line Phase, Toronto, ON Property Statistics Acreage 2.8 Residential Units 506 Retail GLA 156,000 sf 100% Commercial FCR Ownership 67% Residential Commercial Tenants First Capital 34
Slide 35: King High Line
Super Urban Neighbourhood King High Line Toronto, ON First Capital 35
Slide 36: Edmonton Brewery District
Super Urban Neighbourhood Edmonton Brewery District Edmonton, AB Demographics 5KM AVG 2019 Estimates Population 210,700 Average Household Income $94,100 Total Acreage 11.8 GLA 310,000 sf Key Tenants First Capital 36
Slide 37: Edmonton Brewery District
Super Urban Neighbourhood Edmonton Brewery District Edmonton, AB
Slide 38: 3080 Yonge St
Before Super Urban Neighbourhood 3080 Yonge St Toronto, ON Fully Integrated with Lawrence Subway Station Demographics 5KM AVG 2019 Estimates Population 406,400 Current Average Household Income $190,200 Total Acreage 2.0 GLA 250,000 sf Key Tenants First Capital 38
Slide 39: Centre Commercial Wilderton
Before Super Urban Neighbourhood Centre Commercial Wilderton Montreal, QC Re-development Commenced Demographics 5KM AVG 2019 Estimates Population 635,500 Average Household Income $90,700 First Capital 39
Slide 40: Centre Commercial Wilderton: Property Statistics
Super Urban Neighbourhood Centre Commercial Wilderton Montreal, QC Re-development Commenced Future Property Statistics Acreage 5 acres Pre-redevelopment GLA 112,000 sf Post Redevelopment GLA Retail GLA 130,000 sf Residential GLA 500,000 sf Total GLA 630,000 sf First Capital 40
Slide 41: Significant Future Density Pipeline
SIGNIFICANT FUTURE DENSITY PIPELINE Density Pipeline = 24m sf • 5.2m sf (22%) in IFRS NAV • 0.6m sf in active development, 4.6m sf at $434m or $94 per sf 7.2m sf of entitlement submissions YTD 2019 Yonge & Roselawn Toronto, ON Christie Cookie Site Toronto, ON 1071 King St West Toronto, ON Leslie & Y
Slide 42: Upcoming Developments
UPCOMING DEVELOPMENTS Humbertown Phase 1 Residential Toronto, ON Leaside Village Phase 2 Retail Toronto, ON Phase 2 Wilderton Phase 2 Residential Montreal, QC 1071 King (Liberty Village) Toronto, ON First Capital 42
Slide 43: Upcoming Developments
UPCOMING DEVELOPMENTS 400 King Street West Toronto, ON 101 Yorkville Toronto, ON Yonge & Roselawn Toronto, ON 140 Yorkville Toronto, ON First Capital 43
Slide 44: Corporate Social Responsibility
Corporate Social Responsibility 44
Slide 45: ESG Initiatives
ESG INITIATIVES 199 Properties certified 123 Projects certified 3.8m sf 77 % of portfolio in GLA 160 Electric car charging AAA Highest rating possible stations installed First Capital 45
Slide 46: ESG Initiatives: Emissions
ESG INITIATIVES Listed on Corporate Knights “Future 40 Responsible Corporate Leaders in Canada” 5 years in a row (2014 – 2018) 35 26 Millions Thousands 30 25 13% decrease in Greenhouse Gas (GHG) emissions from 2014-2018, despite 8% growth in GLA. 25 25 Emissions (tC02e) 20 24 GLA (ft2) 15 24 10 23 5
Slide 47: Enhancing Super Urban Neighbourhoods Through Public Art
ENHANCING SUPER URBAN NEIGHBOURHOODS THROUGH PUBLIC ART 28 Public Art Installations across our portfolio Public Art Competitions in partnership with First Capital 47
Slide 48: 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 EXECUTIVE BOARD MEMBERS MEMBERS 55% Women 45% Men 22% Women 78% Men MANAGEMENT TOTAL ROLES EMPLOYEES 51% Women 49% Men 62% Women 38% Men First Capital 48
Slide 49: Financial Strength and Super Urban Flexibility
Financial Strength andSuper Flexibility Urban Neighbourhoods
Slide 50: Capital Structure
CAPITAL STRUCTURE Enterprise Value $10.1b Mortgages and Secured 16% Facilities: $1.6b Unsecured Debentures: $2.5b 36% Unsecured Term Loans: $0.9b Unsecured Facilities: $0.3b Total Unsecured $3.7b Equity Capitalization: 48% $4.8b (219.0m shares) As of September 30, 2019 First Capital 50
Slide 51: Financial Strength and Flexibility
FINANCIAL STRENGTH AND FLEXIBILITY As at Q3 2019 2018 2017 2016 Unsecured revolving credit facilities $800m $800m $800m $800m 68% Unencumbered assets (billions) $7.1 $7.3 $7.4 $6.6 of Q3 2019 assets Unencumbered assets to unsecured debt 2.0x 2.5x 2.4x 2.4x Secured debt as % of total assets 15.1% 14.
Slide 52: Well-Staggered Term Debt Maturities
WELL-STAGGERED TERM DEBT MATURITIES Weighted Average Interest Rate 4.0% Term to Maturity 5.4 years 94% of Term Debt is Fixed Rate 2015 2016 2017 2018 2019 As of September 30, 2019 * Not including principal amortization First Capital 52
Slide 53: Historical Performance
Historical Performance Improving Conservative FFO Payout Ratio $350 84% 82% 82% $302 82% $300 $284 $261 80% $250 $236 78% $220 $221 76% $200 78% 74% $150 74% 72% $100 70% 71% 68% $50 66% 68% $0 64% 2014 2015 2016 2017 2018 YTD 2019 FFO excl OGLE/share $1.04 $1.05 $1.10 $1.16 $1.21 $0.94 Dividends/sh
Slide 54: Outlook
OUTLOOK Super Urban Portfolio: Proven Development Capability: Net Asset Value Growth: • Creating super urban • Internal capability with strong track • Active asset management neighbourhoods by investing in high- record for development and re- quality, mixed-use properties with positioning • Developm
Slide 55: Contact
Adam Paul President & CEO Kay Brekken Executive VP & CFO First Capital Shops at King Liberty 85 Hanna Ave, Suite 400 Toronto, ON Tel: 416-504-4114 fcr.ca TSX: FCR.UN 55
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