Riocan Real Estate Investment Trust · TSX:REI.UN
Riocan Real Estate Investment Trust — Shareholder Meeting (June 2017)
61 slides from Riocan Real Estate Investment Trust's shareholder meeting presentation, Jun 8, 2017
Slide 1: Focused on Urban Markets
2 meena FOCUSED S , ON . b D 4 URBAN A MARKETS
Slide 2: 2017 Annual General Meeting
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS PAUL V. GODFREY, C.M., O.ONT., CHAIRMAN JUNE 8, 2017
Slide 3: Forward Looking Information
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS Forward Looking Information Certain information included in this presentation contains forward-looking statements within the meaning of applicable securities laws including, among others, statements concerning our objectives, our strategi
Slide 4: Non-GAAP
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS Non-GAAP RioCan’s consolidated financial statements are prepared in accordance with IFRS. Consistent with RioCan’s management framework, management uses certain financial measures to assess RioCan’s financial performance, which are not ge
Slide 5: RioCan Focused on Urban Markets
RIO*¥CAN FOCUSED ON URBAN MARKETS
Slide 6: 2017 Annual General Meeting
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS 6
Slide 7: Space Vacated by Target Successfully Backfilled
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS SPACE VACATED BY TARGET SUCCESSFULLY BACKFILLED 7
Slide 8: Cash Flow That Space Will Generate
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS CASH FLOW THAT SPACE WILL GENERATE FOR YOUR TRUST WILL BE ABOUT 40 PERCENT HIGHER THAN WHAT WE WOULD HAVE HAD FROM TARGET. 8
Slide 9: Sale of Our U.S. Portfolio
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS SALE OF OUR U.S. PORTFOLIO 9
Slide 10: November of 2009
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS NOVEMBER OF 2009 RIOCAN FIRST BEGAN TO ACQUIRE PROPERTY IN THE UNITED STATES 10
Slide 11: 100 Million U.S. Dollars
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS THE US PORTFOLIO GENERATED SIGNIFICANT INCOME WHILE WE OWNED IT - NEARLY 100 MILLION U.S. DOLLARS IN 2015 11
Slide 12: 930 Million Canadian Dollars
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS WE RECEIVED ABOUT 930 MILLION CANADIAN DOLLARS MORE THAN WE PAID FOR IT. 12
Slide 13: Reduced Our Leverage
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS REDUCED OUR LEVERAGE 13
Slide 14: Replaced All the Funds From Operations
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS REPLACED ALL THE FUNDS FROM OPERATIONS, OR FFO, THAT HAD PREVIOUSLY BEEN COMING FROM UNITED STATES OPERATIONS 14
Slide 15: BBB-Minus to BBB
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS S&P UPGRADED RIOCAN’S BONDS FROM BBB-MINUS TO BBB 15
Slide 16: Luc Vanneste
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS LUC VANNESTE 16
Slide 17: Siim A. Vanaselja
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS SIIM A. VANASELJA 17
Slide 18: RioCan Focused on Urban Markets
RIO*¥CAN FOCUSED ON URBAN MARKETS
Slide 19: Edward Sonshine
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS EDWARD SONSHINE O.ONT., Q.C., CHIEF EXECUTIVE OFFICER JUNE 8, 2017
Slide 20: RioCan Focused on Urban Markets
RIO*¥CAN FOCUSED ON URBAN MARKETS
Slide 21: 2017 Annual General Meeting
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS 21
Slide 22: 2017 Annual General Meeting
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS 22
Slide 23: 2017 Annual General Meeting
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS 23
Slide 24: 2017 Annual General Meeting
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS 24
Slide 25: Differences Between Canada and the United States
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS DIFFERENCES BETWEEN CANADA AND THE UNITED STATES 25
Slide 26: We Simply Have Far Less Retail Space Per Capita
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS WE SIMPLY HAVE FAR LESS RETAIL SPACE PER CAPITA (60%) THAN THEY HAVE IN THE UNITED STATES. THE NUMBER OF ANCHORS IN THE UNITED STATES IS FAR GREATER. OUR GEOGRAPHY - CANADA IS ESSENTIALLY A COUNTRY THAT IS 100 MILES DEEP AND 3,000 MILES W
Slide 27: Tenants That Disappeared in the Last Months
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS TENANTS THAT DISAPPEARED IN THE LAST 12 MONTHS 27
Slide 28: Success Stories
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS SUCCESS STORIES 28
Slide 29: Operating Metrics
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS OPERATING METRICS 29
Slide 30: Occupancy Rate Increased to 96.2%
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS OCCUPANCY RATE INCREASED TO 96.2% 30
Slide 31: Occupancy Since 2007
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS OCCUPANCY SINCE 2007 HISTORICAL COMMITTED OCCUPANCY RATES 2007 TO Q1 2017 31
Slide 32: 122 New Leases 637,000 Sq Ft
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS 122 NEW LEASES 637,000 SQ FT 40% INCREASE IN NEW LEASES SIGNED 32
Slide 33: 88.6% Retention Rate on Lease Expires
2017 ANNUAL GENEAL MEETING FOCUSED ON CANADA’S URBAN MARKETS 88.6% RETENTION RATE ON LEASE EXPIRES 33
Slide 34: 8.2% Average Rent Increase on Renewal
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS 8.2% AVERAGE RENT INCREASE ON RENEWAL 34
Slide 35: 9.6% Average Increase on Non-Fixed Renewals
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS 9.6% AVERAGE INCREASE ON NON-FIXED RENEWALS 35
Slide 36: $19.88 Per Sq. Ft.
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS $19.88 PER SQ. FT. 25% INCREASE VS Q1 2016 36
Slide 37: 2017 Annual General Meeting
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS 37
Slide 38: Burlington Mall
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS BURLINGTON MALL 38
Slide 39: Burlington Mall
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS BURLINGTON MALL 39
Slide 40: 2017 Annual General Meeting
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS 40
Slide 41: Keep in Mind That
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS 1. Growing cash flow that can, over time, translate into KEEP IN MIND THAT increasing distributions RIOCAN HAS ALWAYS SEEN ITS PURPOSE AS: 2. Creating value 41
Slide 42: Yonge Eglinton
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS YONGE EGLINTON 42
Slide 43: Purchase Price: $223.0 Million
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS PURCHASE PRICE: $223.0 MILLION NOI AT ACQUISITION: $13.2 MILLION 43
Slide 44: IMD DAML MMA a
IMD DAML MMA a 1 IAP ALALALM AS. OM MM MM MM MMMM MM ANAAVAL LA Lisa MAAAASAALT NARA NARARARRLLLEE SARARARRLL ELE 2014
Slide 45: 2016
2016 a
Slide 46: . in A NAAN af
= . in A NAAN af i \ itll
Slide 47: 2300 Yonge St
La a T 2300 Yonge St ? 20 Eglinton Ave W ? Upper Mall Plaza Level \ A 7 A a 2016
Slide 48: 2016
2016
Slide 49: Current Value: $533.6 Million
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS CURRENT VALUE: $533.6 MILLION VALUE STABALIZED NOI: $26.5 MILLION Proforma June 30, 2017 49
Slide 50: Sunnybrook Plaza
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS SUNNYBROOK PLAZA 50
Slide 51: Sunnybrook Plaza
yy a lA PITTITTTT, RIO*¥CAN
Slide 52: Acquisition in 2007 for $24.8 Million
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS ACQUISITION IN 2007 FOR $24.8 MILLION CUMULATIVE NOI SINCE ACQUISITION $17 MILLION VALUE CREATION BY REZONING SALE OF 50% INTEREST IN 2017 FOR $26.27 MILLION 52
Slide 53: Windfields Farm
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS WINDFIELDS FARM 53
Slide 54: Future Residential Tribute Joint Venture
FUTURE RESIDENTIAL TRIBUTE JOINT VENTURE
Slide 55: Future Residential Tribute Joint Venture
2017 ANNUAL GENERAL MEETING FOCUSED ON CANADA’S URBAN MARKETS FIRST PHASE OF 169 TOWN HOMES COMPLETED BY 2018 JOINT VENTURE WITH REMAINING TOWNHOMES (TOTALLING 550) AND TWO TWELVE STORY BUILDINGS TRIBUTE COMMUNITIES COMPLETED BY 2020 DEVELOPMENT OF FOOD & ENTERTAINMENT RETAIL PORTION COMPLETED BY 20
Slide 56: Gloucester City Centre
ANNUAL MEETING FOCUS ON CANADA’S URBAN MARKETS GLOUCESTER CITY CENTRE 56
Slide 57: Gloucester City Centre
GLOUCESTER CITY CENTRE RIO*¥CAN
Slide 58: Gloucester City Centre
GLOUCESTER CITY CENTRE • Joint Venture with Killam Apartment REIT • 7.1 acre site • Zoning Approval for 840 units • Located adjacent to Blair Station along Ottawa’s Confederation East LRT line.
Slide 59: Annual Meeting
ANNUAL MEETING FOCUS ON CANADA’S URBAN MARKETS 59
Slide 60: Annual Meeting
ANNUAL MEETING FOCUS ON CANADA’S URBAN MARKETS 60
Slide 61: RioCan Focused on Urban Markets
RIO*¥CAN FOCUSED ON URBAN MARKETS
RioCan Real Estate Investment Trust — Shareholder Meeting (June 2017) on 6ix