Granite Real Estate Investment Trust · TSX:GRT.UN
Granite Real Estate Investment Trust — Investor Presentation (August 2021)
21 slides from Granite Real Estate Investment Trust's investor presentation, August 2021
Slide 1: Investor Presentation | August 2021
INVESTOR PRESENTATION | August 2020 INVESTOR PRESENTATION | August 2021
Slide 2: Presentation of Certain Information
PRESENTATION OF CERTAIN INFORMATION • Unless otherwise indicated in this presentation, all information is presented as of June 30, 2021 and all financial information that is identified as current refers to the period ending June 30, 2021. For definitions of certain non-IFRS measures used in this pre
Slide 3: Granite Highlights
GRANITE HIGHLIGHTS ORGANIZATIONAL PRINCIPLES PORTFOLIO OVERVIEW FINANCIAL PERFORMANCE Long-term total return focused 110 income-producing properties + 78% LTM AFFO POR 8 development properties/land Conservative and flexible capital 20% net leverage ratio 51.3M square feet with 99.3% structure occupa
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 - $500M Green Bond Use of Net Proceeds
ESG - $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 1201 Allpoi
Slide 6: Granite's Evolution
GRANITE’S EVOLUTION Investment Property Summary Then - December 31, 2011 Now - June 30, 2021 0.7M SF Flex/Office2 13.8M SF $143M Multi-Purpose2 14.1M SF 5.5M SF $802M Special Purpose 36.2M SF Industrial/Warehouse2 $1,089M Distribution/E-commerce3 $813M $1.9B 8.9M SF $6.4B $4,298M Value Special Purpo
Slide 7: Portfolio Transformation Strategy
PORTFOLIO TRANSFORMATION STRATEGY Invest selectively/opportunistically in Target markets with superior Focus on modern facilities that meet evolving property types and markets economic conditions and market the demands of E-Commerce and benefiting from technological fundamentals traditional distribu
Slide 8: Financial Performance
FINANCIAL PERFORMANCE Historical Operating Performance ($M) Distributions and Payout Ratios 91% $371 82% 81% $340 78% 77% 71% $289 74% 78% 79% 73% $274 78% 3.00 $265 71% 2.90 $245 $248 68% 2.80 68% 2.72 $228 $223 $214 $216 $216 2.60 $204 $188 $185 $187 2.43 $183 $181 $173 2.30 $158 $162 $154 2.21 $1
Slide 9: GRT Historical Performance
GRT HISTORICAL PERFORMANCE Total Return vs TSX Composite & TSX Capped REIT Indices Cumulative Total Return % Annualized Total Return % COVID-19 320% 180% 295% 160% 270% 245% 140% 220% 120% 195% 170% 100% 145% 80% 120% 95% 60% 70% 40% 45% 20% 20% -5% 0% 1Yr 2Yr 3Yr 5Yr Granite REIT TSX Capped REIT In
Slide 10: Globally Diversified Portfolio
GLOBALLY DIVERSIFIED PORTFOLIO 7 countries – 118 properties – 51.3 million square feet POLAND 2 properties GERMANY 0.3M SF 11 properties 3.5M SF CANADA 30 properties 5.9M SF NETHERLANDS 1 12 properties 2 3.8M SF 4 UNITED STATES 52 properties CZECH 29.6M SF REPUBLIC AUSTRIA 1 property 10 properties 0
Slide 11: Portfolio Segmentation by Geography
PORTFOLIO SEGMENTATION BY GEOGRAPHY By Income Producing Property Fair Value By Annualized Revenue $54.3M $53.3M $1,028M 16% 16% 16% 20% $1,285M $330M 12% $762M $6.3B $61.9M 19% $3,234M $160.1M 49% 51% By Square Feet By Number of Income-Producing Properties 7.9 11% 5.9 15% 24 22% 30 27% 15% 51.3M 10
Slide 12: Portfolio Segmentation by Category
PORTFOLIO SEGMENTATION BY CATEGORY Income-Producing Properties by Value Segmented by Category Distribution/E-commerce Properties Industrial/Warehouse 67 Properties 32 Properties 36.2 M SF (∼541K SF/property) 5.5 M SF (∼172K SF/property) $4.3 B Fair Value (∼$119/SF) $0.8 B Fair Value(∼$148/SF) WALT:
Slide 13: Development and Expansion Pipeline
DEVELOPMENT AND EXPANSION PIPELINE Altbach, Germany ~0.3M SF Fort Worth, Texas ~0.6M SF Mississauga, Ontario (expansion) ~0.1M SF Houston, Texas ~0.7M SF Active development program to enhance total return & platform value August 2021 13
Slide 14: Lease Expiration Profile
LEASE EXPIRATION PROFILE Outstanding Lease Expiries by Annualized Revenue Annualized Overall Revenue $329.7M WALT 6.0 Years Occupancy 99.3% 100 43.8% Canada USA Austria Europe 90 80 Annualized Revenue (C$M) 70 60 18.4% 50 40 9.0% 12.8% 30 7.4% 8.5% 20 0.2% 10 0 2021 2022 2023 2024 2025 2026 2027+ %
Slide 15: High Quality & Creditworthy Tenant Base
HIGH QUALITY & CREDITWORTHY TENANT BASE Other Tenants Annualized Credit Top 10 Tenants GLA % WALT Revenue % Rating1,2 Magna 34% 25%3 4.3 A- Amazon 6% 5% 17.7 AA True Value Company 3% 3% 19.7 NR ADESA 2% —% 8.1 NR Restoration Hardware 2% 2% 6.8 NR Hanon 2% 1% 8.2 BBB Spreetail FTP 2% 2% 5.3 NR Ingram
Slide 16: Balance Sheet Strength (C$M)
BALANCE SHEET STRENGTH Capitalization Debt Maturity Profile Unit Price (07/30/2021) $86.38 Units Outstanding 65.7 $1,200 Weighted average debt term-to-maturity – 5.7 years 998 Market Capitalization $5,674 Weighted average cost of debt – 1.74% $1,000 $800 Credit Facility $0 Debentures 3.873% due Nov/
Slide 17: Credit Metrics Summary
CREDIT METRICS SUMMARY • The following table was sourced from DBRS’ North American Real Estate Peer Comparison dated April 2021. DBRS North American Real Estate Peer Comparison1: Peer Group Granite Rank Granite2 Average Among Peer Group Total Debt to Capital 33.0% 49.2% #3 Total Debt to EBITDA 7.5x
Slide 18: 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 19: 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 the lowest leverage within DBRS1 universe of Canadian Real Estate entities 1 Source: DBRS North American Real Estate
Slide 20: 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 2.0x 0.40 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 21: 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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