Nexus Industrial Reit · TSX:NXR.UN
Nexus Industrial Reit — Investor Presentation (March 2024)
17 slides from Nexus Industrial Reit's investor presentation, March 2024
Slide 1: Nexus Industrial REIT Investor Presentation
Nexus Industrial REIT Investor Presentation “Canada’s Pure Play Industrial REIT” NEXUS INVESTOR PRESENTATION MARCH 2024 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 Industrial REI
Slide 3: Nexus Industrial REIT – Creating Unitholder Value
Nexus Industrial REIT – Creating Unitholder Value Nexus Industrial REIT (“Nexus” or the “REIT”) is creating unitholder value through the acquisition and ownership of institutional quality industrial properties across Canada 1 HIGH QUALITY INDUSTRIAL FOCUSED PORTFOLIO ➢ 117 high quality and well-loca
Slide 4: High quality, high occupancy industrial-focused portfolio
High quality, high occupancy industrial-focused portfolio Industrial Portfolio(1) Retail and Office Portfolio(1) 93% of NOI 7% of NOI 11MM square feet at interest 1.45MM square feet at interest 99% occupied 82% occupied Stable Cash Flow, Embedded Rent Escalations in Long-Term Leases and a 24% Mark t
Slide 5: Industrial-focused assets are well diversified nationally
Industrial-focused assets are well diversified nationally 117 properties located across Canada1 NOI by Geography (2) (3) NWT BC 0.6% QC 1.2% 20.6% AB MB 25.7% 0.7% NB 3.2% 1 SK 14.2% ON 33.8% 3 NOI by Asset Class (2) (3) 27 12 1 Office 11 3 Retail 3.7% 13 16 3.6% 1 1 2 27 86 Industrial 16 Retail Mix
Slide 6: Lease expiries and occupancy: delivering cash flow stability and near-term renewal upside
Lease expiries and occupancy: delivering cash flow stability and near-term renewal upside Lease Expiry Schedule (Square Feet, ‘000s) at December 31, 2023 Weighted Average Lease Term of ~6.9 Years 7,766 852 1,154 1,092 470 713 2024 2025 2026 2027 2028 Thereafter % of Industrial GLA 7% 10% 9% 4% 6% 64
Slide 7: Industrial portfolio: +24% mark to market is driving upside on lease renewals
Industrial portfolio: +24% mark to market is driving upside on lease renewals Enhanced Industrial Leasing Spreads1 $75MM $65MM +43% $55MM Annual NOI $45MM +3% $35MM +5% +42% $25MM +17% $15MM $5MM Ontario Alberta Saskatchewan Quebec Other 4.6MM sf 2.6MM sf 1.6MM sf 1.1MM sf 600k sf Current Rent PSF M
Slide 8: Stable, scalable capital structure with surplus liquidity
Stable, scalable capital structure with surplus liquidity Mortgage Principal Maturity Schedule ($MM) as at December 31, 2023 Weighted Average Term to Maturity ~ 5.8 Years Weighted Average Interest Rate ~3.4% $273 $89 $40 $37 $52 $30 2024 2025 2026 2027 2028 Thereafter W.A. Interest Rate: 4.5% 3.5% 3
Slide 9: Nexus has a clear strategy to build unitholder value
Nexus has a clear strategy to build unitholder value • The REIT plans to dispose of its remaining office, retail and non-core industrial. Dispose of Office, Retail and • During Q4-2023, 93% of the REITs NOI was generated from its industrial properties. The REIT is in Non-Core Industrial the process
Slide 10: Adding value through select acquisitions and sales
Adding value through select acquisitions and sales Asset GLA Purchase/Sale Date Closed City Highlights Type (at share) Price Brand-new single-tenant distribution centre leased to Ford. An March 7, 2023 Industrial Casselman, ON 531,000 sf $116.5MM opportunity to build a relationship with a reputable
Slide 11: High-grading initiatives
High-grading initiatives Select Acquisitions: Logistics and Distribution Assets Laval, Quebec Tenant: Yokohama Tires Lease term: 2030 Rental Increases: 4.25% per annum Completion Date: June 1, 2023 GLA: ~192k sf Shipping doors: 29 Clear Heights: 32’ London, Ontario Tenant: HCL Logistics Lease term:
Slide 12: Portfolio high-grading initiatives continued
Portfolio high-grading initiatives continued Select Acquisitions: Logistics and Distribution Assets Burlington, Ontario Tenant: Portside Warehousing Lease term: 2031 Rental Increases: 4% per annum Completion Date: July 1, 2023 GLA: ~142k sf Shipping doors: 24 Clear Heights: 32’ London, Ontario Tenan
Slide 13: Portfolio high-grading initiatives continued
Portfolio high-grading initiatives continued Select Acquisitions: Logistics and Distribution Assets Casselman, Ontario London, Ontario Balzac, Alberta Greater Montreal Area NEXUS INVESTOR PRESENTATION MARCH 2024 13
Slide 14: Advanced development pipeline will add ~$11MM in stabilized NOI in 2024
Advanced development pipeline will add ~$11MM in stabilized NOI in 2024 Existing land within the REIT’s portfolio provides for highly accretive intensification. Expected Expected City GLA Highlights Completion Unlevered Return The REIT is completing construction of a 312,000 sf distribution centre i
Slide 15: Experienced leadership team with a proven track record
Experienced leadership team with a proven track record 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 Apart
Slide 16: A growth-focused, industrial REIT with significant upside potential
A growth-focused, industrial REIT with significant upside potential Nexus provides investors the opportunity to participate in a growth stage industrial REIT owning quality Canadian assets at a significant valuation discount compared to other industrial REITs 1 Nexus Industrial REIT is the only pure
Slide 17: Contact Us
Contact Us Kelly Hanczyk CEO Phone: (416) 906-2379 Email: khanczyk@nexusreit.com Mike Rawle CFO Phone: (647) 823-1381 Email: mrawle@nexusreit.com NEXUS INVESTOR PRESENTATION MARCH 2024 17
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