Nexus Industrial Reit · TSX:NXR.UN
Nexus Industrial Reit — Nexus Real Estate Investment Trust — Investor Presentation (November 2021)
17 slides from Nexus Industrial Reit's investor presentation, November 2021
Slide 1: Nexus Real Estate Investment Trust Investor Presentation
Nexus Real Estate Investment Trust Investor Presentation “Canada’s next Pure Play Industrial REIT” NEXUS INVESTOR PRESENTATION NOVEMBER 2021 1
Slide 2: Notice to the Reader
Notice to the Reader ABOUT THIS PRESENTATION No reliance may be placed for any purpose whatsoever on the information contained in this presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of Nexus REIT (the “REI
Slide 3: Nexus REIT Poised For Value Creation
Nexus REIT Poised For Value Creation Nexus REIT (“Nexus” or the “REIT”) is focused on unitholder value creation through the acquisition and ownership of commercial properties across Canada 1 HIGH QUALITY INDUSTRIAL FOCUSED PORTFOLIO ➢ 95 quality, commercial properties (industrial, retail and office)
Slide 4: A Diversified Portfolio With An Industrial Focus
A Diversified Portfolio With An Industrial Focus Industrial Portfolio Retail Portfolio Office Portfolio 16% of NOI 8% of NOI 76% of NOI (~80% proforma acquisitions) Many Investment Grade, High-Quality Majority of Urban Office Assets Stable Cash Flow, Long-Term Leases, National Tenants Offering Neces
Slide 5: Nationwide Asset Base
Nationwide Asset Base1 103 properties located across Canada (pro forma the acquisition of 8 industrial properties under contract) Pro Forma NOI by Geography MB NWT PEI NB 1% 1% 0% BC 5% QC 7% 23% 1 SK 15% 4 AB 23 1 ON 12 24% 1 24% 10 3 8 19 1 Proforma NOI by Asset Class 1 1 Office 19 6% 69 Industria
Slide 6: Demonstrated Track Record of Success: AFFO Payout Ratio
Demonstrated Track Record of Success Management has demonstrated its ability to successfully make and integrate accretive acquisitions resulting in an attractive AFFO payout ratio 99% 100% 95% 92% 89% 90% AFFO Payout Ratio 83% 83% 82% 79% 80% 70% 60% 2014 2015 2016 2017 2018 2019 2020 2021(1) 1. YTD
Slide 7: 2021 Acquisitions
2021 Acquisitions Overview Nexus is acquiring industrial assets with strong long-term 1 tenants in attractive markets. Deals are accretive to AFFO/Unit, and purchase prices are 2 significantly lower than appraisal values. Many vendors continue to take units as partial purchase price 3 consideration.
Slide 8: 2021 Acquisitions Continued
2021 Acquisitions Continued GLA Purchase Capitalization Date Closed City Highlights (at share) Price Rate Acquired a single tenant distribution center in Red Deer, AB. The September 9, 2021 Red Deer, AB 189,625 sf $19.8MM location is one of Peavey Industries 2 distribution centers in Canada. Acquire
Slide 9: Value Creation - Richmond, BC
Value Creation - Richmond, BC Overview Phase 2A Redevelopment Value Creation Underway • Industrial asset (consisting of 2 buildings) in Richmond, BC purchased for $57.4MM in April 2018 • Appraised at ~$80MM (March 2018), and $120MM to $136MM (Q3 2021) highlighting the significant inherent value of t
Slide 10: Value Creation – Halles d’Anjou
Value Creation – Halles d’Anjou Overview Value Creation • The REIT and the REIT’s partner are in negotiation to sell excess land at 7500 Boulevard les Galeries d’Anjou. The purchaser intends to build residential units on the land. The purchase price is expected to be approximately $25MM (at 100% int
Slide 11: Lease Expiries and Occupancy
Lease Expiries and Occupancy Lease Expiry Schedule (Square Feet, ‘000s) at June 30, 2021 3,361.2 Weighted Average Lease Term of ~5 Years 2018 868.7 671.9 699.1 193.3 2022 2023 Remainder of 2021 2022 2023 2024 Thereafter 2024 % of Total Leased GLA 3.3% 11.6% 15.0% 12.1% 58.0% 2025 2026 Occupancy by A
Slide 12: Liquidity & Debt Maturities
Liquidity & Debt Maturities Debt Repayment Schedule ($MM) as at June 30, 2021 Weighted Average Term to Maturity ~4 Years Weighted Average Interest Rate ~3.7% $162.8 $57.5 $50.0 $32.6 $25.7 Remainder of 2021 2022 2023 2024 Thereafter % of Total 9.9% 7.8% 17.5% 49.5% 15.2% Debt Liquidity • As at June
Slide 13: Benefiting from a Strategic Investor and Partner
Benefiting from a Strategic Investor and Partner • Privately held real estate investment and Overview: asset management firm • Owns ~10% of the REIT’s outstanding units RFA Bank of Canada Founded: • 1996 • Invests in office, retail, industrial, multi- family and seniors housing properties in Experie
Slide 14: Leadership Team
Leadership Team Management Team Board of Trustees Name Title Experience Name Experience • Chairman of The Board Ben • Principal and Managing Partner of RFA Capital Rodney • Former CEO and Trustee of TransGlobe • Chair of Artis REIT Board of Trustees Kelly Apartment REIT CEO Hanczyk • Extensive exper
Slide 15: Favourable Pricing Metrics
Favourable Pricing Metrics Price / Price / Units Market Current FFO AFFO Prem./Disc. Last Price(1) Distribution FFO AFFO NAV O/S Cap(2) Yield 2021E 2021E 2021E 2021E to NAV Nexus REIT $ 13.34 70.1 $ 935 $ 0.64 4.80% $ 0.80 16.7x $ 0.74 18.1x $ 11.43 16.7% Industrial REITs Dream Industrial REIT $ 17.
Slide 16: Key Takeaways
Key Takeaways Nexus provides investors the 1. Robust pipeline of industrial acquisition opportunities with opportunity to add significant GLA to existing opportunity to participate in an assets in the London Ontario market. industrial-focused investment 2. Opportunity for multiple expansion, with th
Slide 17: Contact Us
Contact Us Kelly Hanczyk CEO Phone: (416) 906-2379 Email: khanczyk@nexusreit.com Rob Chiasson CFO Phone: (416) 613-1262 Email: rchiasson@nexusreit.com NEXUS INVESTOR PRESENTATION NOVEMBER 2021 17
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