Choice Properties Real Estate Investment Trust · TSX:CHP.UN
Choice Properties Real Estate Investment Trust — FY2024 Earnings Presentation
69 slides from Choice Properties Real Estate Investment Trust's earnings presentation, Feb 13, 2025
Slide 1: 2024 Annual Investor Presentation
2024 Annual Investor Presentation ChoiceProperties Places People Thrive ™
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this document constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Choice Properties REIT’s ("Choice Properties” or the "Trust”) future outlook and anticipated events or resu
Slide 3: Contents
Contents • 2024 Financial and Operating Performance • 2024 Key Achievements 2024 Overview • 2024 Development Deliveries • Continued Outperformance • Purpose-Driven Strategy Canada’s Premier REIT • Proven Strategic Framework • Our Near-Term Focus • 3 Strategic Asset Classes • Winning Retail Portfolio
Slide 4: 2024 Overview
2024 Overview West Block Toronto, ON
Slide 5: 2024 Financial and Operating Performance
2024 Financial and Operating Performance 04 2024 Q4 2023 2024 2023 FFO(1) $0,260 $0,255 $1,032 $1,003 /unit /unit /unit /unit +2.0% +2.9% AFFO(1) $0,151 $0,176 $0,864 $0,827 /unit /unit /unit /unit -14.2% +4.5% Same-Asset NOI, $242.8M $236.1M $958.0M $928.6M Cash Basis(1) +2.8% +3.2% NAV(1) $14.07 $
Slide 6: 2024 Key Achievements
2024 Key Achievements For the year ended December 31,2024 Capital Recycling Program Delivering on our Full Year Outlook • Acquisition of $260.1M of retail and industrial properties 2024 Outlook 2024 Actual Achieved • Disposition of $166.4M non-core assets / SA-NOI(1)growth 2.5% -3.0% 3.2% Operationa
Slide 7: 2024 Development Deliveries
2024 Development Deliveries We advanced our development portfolio, delivering 0.9M sq. ft.(1)of new generation industrial logistics facilities, 0.2M sq. ft. of retail intensifications and 151 residential rental units(2) at Uniti. 2024 Development Number of Transferred Expected Expected Completions P
Slide 8: Continued Outperformance
Continued Outperformance Choice has delivered since IPO, navigating economic downturns and ongoing market uncertainty, using its consistent and disciplined approach Total Annualized Return Since Choice IPO 8.4% annualized return 2013 Choice IPO Total Annualized Return Since CREIT Acquisition 7.9% an
Slide 9: Canada's Premier REIT
Canada’s Premier REIT 396 St. Clair Avenue W Toronto, ON
Slide 10: Canada's Premier REIT
Canada’s Premier REIT Leading where it matters most Largest in Canada(1) Unmatched Necessity- Strategic Relationship with Based Portfolio Canada’s Largest Retailer 700+ High-quality 83% Necessity-based 57% Loblaw tenancy(4) properties retail portfolio(3) 67.2M Across 3 strategic 38M Grocery-anchored
Slide 11: Purpose-Driven Strategy
Purpose-Driven Strategy Choice Properties is a leading Real Estate Investment Trust that creates enduring value through places where people thrive. We are more than a national owner, operator and developer of high-quality commercial and residential real estate. We believe in creating spaces that enh
Slide 12: Proven Strategic Framework
Proven Strategic Framework Creating Preservation Stable and growing G O ALS Enduring Value: of capital cash flows distributions overtime A 1 Maintaining Care 2 market-leading portfolio Appreciation in NAVand P R IO R IT IE S 3 Ownership VALU ES Sustaining operational excellence Respect CORE Deliveri
Slide 13: Our Near-Term Focus
Our Near-Term Focus 1 Maintaining 2 Sustaining 3 Delivering Priorities market-leading operational development portfolio excellence pipeline Maximizing value in our Executing on our near-term Building for core asset classes Delivering best-in-class Industrial opportunity the Future Improving quality
Slide 14: Market Leading Portfolio
Market Leading | Portfolio —— ] ChoiceProperties
Slide 15: 3 Strategic Asset Classes
3 Strategic Asset Classes A high-quality national footprint where Canadians live <and work Properties Square Fair (1) Under Properties Feet Valued Development Retail Predominately necessity- based arocery anchored 570 44.5m $11.3b 44 retail portfolio Projects Flexible well-located Industrial 124 20.
Slide 16: Strategic Asset Classes: NOI by Province
3 Strategic Asset Classes Percentage of NOI by province(1) 97.6% Total Occupancy (1) Calculated as a % of total NOI on a proportionate share cash basis as at December 31, 2024. Q4 2024 • 3 Strategic Asset Classes 15
Slide 17: Stable and Consistent Occupancy
Stable and Consistent Occupancy Period-End Occupancy Occupancy by Asset Class Retail 97.6% Industrial 97.9% Mixed-Use & 94.1% Residential(1) Total 97.6% (1) Occupancy represents retail and office portion of mixed-use properties; residential units are excluded. Q4 2024 • 3 Strategic Asset Classes 17
Slide 18: Long-Term Leases
Long-Term Leases High quality tenants provide cash flow stability Lease Expiry by Year(1) Weighted Average Lease Term Loblaw Ancillary Total 6.6 5.3 6.1 years years years (1) Lease expiry by year excludes ground leases. Q4 2024 • 3 Strategic Asset Classes 18
Slide 19: Winning Retail Portfolio
Winning Retail Portfolio Necessity-based, well-located properties supported by strong anchor tenants ChoiceProperties 19
Slide 20: Winning Retail Assets
Winning Retail Assets Predominantly necessity-based grocery anchored retail portfolio 44.5M 570 Square Feet Properties $11.3B 97.6% Fair Value(1) Occupancy (1) Fair value of investment properties is shown on a proportionate share basis.
Slide 21: Strong Necessity-Based Retail Anchor Tenants
Strong Necessity-Based Retail Anchor Tenants Reliable and stable cash flows +65% of retail revenue from Loblaw banners(1) +69% of retail revenue from grocery and pharmacy(1) +83% of retail revenue from necessity-based retail(1) (1) Calculated on retail segment's annualized gross rental revenue on a
Slide 22: Retail Footprint
Retail Footprint(1) 85% of properties located at key intersections Necessity- Square Feet (M) NOI(2) based(3) . Neighbourhood . Centres 39.2 88% 89% Power Centres 5.3 12% 34% Total 44.5 83% (1) Calculated as a % of the retail segment's total GLA as at December 31, 2024. (2) Calculated as a % of the
Slide 23: Strong Tenant Retention
Strong Tenant Retention Reliable and stable cash flows Lease Expiry by Year(1) 97.6% in-place occupancy • Staggered maturities • High probability of renewal • Strong covenant tenants (1) Lease expiry by year excludes ground leases. Q4 2024 • Winning Retail Portfolio 23
Slide 24: High-Demand Industrial
High-Demand Industrial High-quality generic industrial assets in key distribution markets ChoiceProperties 24
Slide 25: High-Demand Industrial
High-Demand Industrial Flexible well-located industrial portfolio 20.9M 124 Square Feet Properties $4.1 B 97.9% Fair Value(1) Occupancy (1) Fair value of investment properties is shown on a proportionate share basis.
Slide 26: High-Demand Industrial
High-Demand Industrial^ 87%of industrial assets are generic and nigh quality Square Feet (M) % of Total Distribution 18.2 87% Warehouse(2) 2.7 13% Total GLA 20.9 Kitchener/Cambridge/Waterloo (1) Calculated as a % of the industrial segment's total GLA as at December 31, 2024. 5% (2) Warehouse include
Slide 27: Resilient Industrial Tenant Base
Resilient Industrial 33% Tenant Base Loblaw gross industrial revenue(1) Top 10 Industrial Tenants(1) 1 Loblaw 2 Amazon 3 Canada Cartage 4 Wonderbrands 5 Pet Valu 6 NFIIPD 7 Uline Canada Corporation 8 Alberta Gaming, Liquor and Cannabis 9 Kimberly-Clark 10 Canadian Tire (1) Calculated on industrial s
Slide 28: Significant Embedded Growth
Significant Embedded Growth Major Market Breakdown Choice Market $9.76 Vancouver Avg. Rent(1) $14.07 Avg. Rent(2) $20.09 Choice avg. in-place rent(1) based on Choice portfolio Edmonton $8.97 $10.30 Calgary $8.41 $11.36 $15.51 Greater Toronto Area $10.23 $17.18 Canadian Market avg. rent(2) Greater Mo
Slide 29: Mixed-Use & Residential
Mixed-Use & Residential Purpose-built rental in key markets ChoiceProperties 29
Slide 30: Mixed-Use & Residential
Mixed-Use & Residential Transit oriented mixed-use and residential portfolio 1.8M 11 923 Square Feet(1) Properties Residential II Units S0.9B 94.1% FairValue(2) Occupancy(3) (1) 1.8 million sq. ft. of GLA includes 0.7 million sq. ft. associated with Choice Properties' 923 residential units. (2) Fair
Slide 31: Mixed-Use & Residential Properties
Mixed-Use & Residential Properties Liberty House The Brixton Uniti Element Residential Residential Residential Residential Toronto, ON Toronto, ON Brampton, ON Ottawa, ON Units 440 units Units 397 units Units 302 units Units 252 units Ownership 50% Ownership 50% Ownership 50% Ownership 50% ChoicePrO
Slide 32: Transformational Development
Transformational Development
Slide 33: Developing with Purpose
Developing with Purpose Diversifying our tenant base while delivering steady growth Retail Intensifications Near-Term Industrial Mixed-Use & Residential Delivering steady growth and Capitalizing on market trends with Transforming communities with maintaining portfolio quality 5.0M sq. ft of high-qua
Slide 34: Development Pipeline Positioned for Growth
Development Pipeline Positioned for Growth Driving near, medium and long-term value 18.1m sq.ft. Sq. ft. (1) In Planning Zoned & Ready Active Total Retail - 0.2M 0.3M ► 0.5M Industrial - 4.2M 0.8M ► 5.0M Mixed-Use & Residential 8.5M 4.1 M - ► 12.6M Total 8.5M 8.5M 1.1M ► 18.1M (1) At the Trust's sha
Slide 35: On the Move
On the Move Strengthening our portfolio with active development projects Projects under Sq. ft. upon Total active development completion(1) investment(1) Retail 18 0.3M $109M Industrial 1 0.8M 215M Residential(2) 1 - 2M Total 20 1.1M $326M (1) Estimated upon completion at the Trust's share. Active d
Slide 36: Industrial Development Pipeline
Industrial Development Pipeline Immense near-to-medium term opportunity within active and in planning developments Choice Caledon Business Park 5.0M sq. ft. zoned(1) Caledon, ON 2 Projects 259 Net Developable Acres(1) 0.8M 2025 completions sq. ft. (1) 4.2M 2026+ completions sq.ft. (1) sq. (1) At the
Slide 37: Mixed-Use and Residential Development Pipeline
Mixed-Use and Residential Development Pipeline Significant future growth 985 Woodbine Ave. 25 Photography Dr. 13 Toronto, ON Toronto, ON Projects in planning 12.6M Potential sq. ft. Density(1) Potential 606 total units 2,356 total units 15,311 Residential Units(1) 1.7 acres 77 acres (1) At the Trust
Slide 38: Prudent Financial Management
Prudent Financial Management
Slide 39: Measuring Financial Success
Measuring Financial Success Proven Stability. Positioned for Growth. PRIORITIES Stable and growing cash flows FINANCIAL GOALS from existing portfolio • Maximizing value in our core asset classes 1 Maintaining • Improving quality through balanced capital recycling Preservation • Delivering best-in-cl
Slide 40: Significant Financial Capacity
Significant Financial Capacity BBB (High)/+ 1.4x below peer average(2) DBRS/S&P Rating $13.0B unencumbered assets(1) $1.5B unused portion of revolving credit facility(1) Adjusted Debt to EBITDAFV, net of cash(3)(4) (1) As at December 31, 2024. (2) Source: Q3 2024, TD Earnings Update Reports. Peer av
Slide 41: Capital Structure Targets
Capital Structure Targets Maintaining financial stability Q42024 Mortgages and Target Range 10% $1.9B Secured Facilities(5) Unused portion of $5.4B revolving credit facility 0 $1.5B > $1.0B Unsecured Debentures Adjusted Debt to EBITDAFV(1)(2) 0 7.0x <7.5x 30% Unsecured Credit Facility $0.0B ($I.5B t
Slide 42: Debt Maturity Profile
Debt Maturity Profile(1) 4.18 % 6.1 Ye Well-balanced debt ladder ars WAIR(2) WATM(2) (1) As at December 31, 2024, on a proportionate share basis. (2) Reflects senior unsecured debentures and fixed-rate secured debt. ChoiceProperties Q4 2024 • Debt Maturity Profile 42
Slide 43: Environmental, Social & Governance Program
Environmental. Social & Governance Program
Slide 44: Leading by Example in ESG
Leading by Example in ESG Read our ESG Report to learn more about our sustainability strategy, initiatives, and achievements www.choicereit.ca /sustainabity A close-up of solar panels Description automatically generated 2023 Environmental, Social and Governance Report ChoiceProperties Q4 2024 • Lead
Slide 45: Appendices
Appendices ChoiceProperties
Slide 46: Transformational Industrial Development
Transformational Industrial Development
Slide 47: Choice Caledon Business Park, Caledon, ON
Choice Caledon Business Park • 380-net acres of industrial Caledon, ON development land • Excellent access to major highways and intermodals • Strong labour pool • Multi-phase industrial park • New generation logistic space • Phase 1 delivered: 90-acre ground lease with Loblaw • Partner: Rice Group
Slide 48: Mixed-Use & Residential in Planning
Mixed-Use & Residential in Planning
Slide 49: Grenville & Grosvenor, Toronto, ON
Grenville & Grosvenor • 1-acre site in Downtown Toronto, ON Toronto • 700+ units • Provincial Affordable Housing Lands Program • Transit accessible • Partner: Greenwin 99 97 91 Walk Score Transit Score Bike Score Q4 2024 • Appendices • Mixed-Use & Residential in Planning 49
Slide 50: North Road, Coquitlam, BC
North Road • 7.8-acre site in city Coquitlam, BC centre • Access to two lines of Vancouver SkyTrain • Revitalization into mixed-use community • High density residential and retail Q4 2024 • Appendices • Mixed-Use & Residential in Planning 50
Slide 51: 985 Woodbine Ave. - Toronto, ON
985 Woodbine Ave. - Toronto, ON Q4 2024 • Appendices • Mixed-Use & Residential in Planning 51
Slide 52: 985 Woodbine Ave., Toronto, ON
985 Woodbine Ave. • 1.7-acre site in Toronto, ON Downtown Toronto • Two mid-rise rental residential buildings • 606 units • Directly adjacent to Woodbine TTC subway station • Grocery retail at-grade • Obtained city approval Q4 2024 Q4 2024 • Appendices • Mixed-Use & Residential in Planning 52
Slide 53: 720 Broadview Ave, Toronto, ON
720 Broadview Ave • 3.3-acresite Toronto, ON • 503 units • 1 residential building • Directly across from Broadview TTC subway station • New grocery store • Dedicated public park Q4 2024 • Appendices • Mixed-Use & Residential in Planning 53
Slide 54: 2280 Dundas St. W - Toronto, ON
2280 Dundas St. W - Toronto, ON Q4 2024 • Appendices • Mixed-Use & Residential in Planning 54
Slide 55: 2280 Dundas St. W, Toronto, ON
2280 Dundas st .W • 13-acre site in Downtown Toronto. ON Toronto • Major transit hub (TTC, GO Train, UP Express) • Large mixed-use community • High density residential, retail and office Q4 2024 • Appendices • Mixed-Use & Residential in Planning 55
Slide 56: Parkway Forest Dr., Toronto, ON
Parkway Forest Dr. • 3-acre site Toronto, ON _ • 382 units • 1 residential building • Close proximity to Don Mills TTC subway station I • Partner: Woodbourne Canada Q4 2024 • Appendices • Mixed-Use & Residential in Planning 56
Slide 57: 25 Photography Dr. - Toronto, ON
25 Photography Dr. - Toronto, ON Q4 2024 • Appendices • Mixed-Use & Residential in Planning 57
Slide 58: 25 Photography Dr., Toronto, ON
25 Photography Dr. • 7.7 -acre site Toronto, ON • 7 mixed-use buildings • Major transit hub (Eglinton Crosstown LRT, GO Train, UP Express) • Community integration Q4 2024 • Appendices • Mixed-Use & Residential in Planning 58
Slide 59: 685 Warden Ave., Toronto, ON
685 Warden Ave. • 6.5-acresite Toronto ON • 2,100 units • 6 residential buildings • Directly adjacent to Warden TTC subway station • Dedicated public park Q4 2024 • Appendices • Mixed-Use & Residential in Planning 59
Slide 60: 449 Carlaw Ave. - Toronto, ON
• 5.6-acre site • 3 mixed-use buildings • 1,080 units • Transit-oriented community • Future stop on Ontario Line 449 Carlaw Ave. - Toronto, ON Q4 2024 • Appendices • Mixed-Use & Residential in Planning 60
Slide 61: Golden Mile - Toronto, ON
• 19-acre site in Toronto Golden Mile - Toronto, ON • Adjacent to two new transit stations along Eglinton Crosstown LRT • Large mixed-use community • High density residential and retail Q4 2024 • Appendices • Mixed-Use & Residential in Planning 61
Slide 62: Golden Mile, Toronto, ON
Golden Mile Phase 1 Toronto, ON • 1 rental tower and 2 condo towers • 1,350 units • Mixed-use • Community innovation district • Partner: Daniels Q4 2024 • Appendices • Mixed-Use & Residential in Planning 62
Slide 63: Immense Value Opportunity
Immense Value Opportunity Choice Properties continues to grow and create value through its pipeline of potential commercial and mixed-use developments.
Slide 64: Toronto
Toronto • 52 properties in the City of Toronto • Significant long-term development potential • 40 Retail • 2 Industrial • Mixed-use & 5 Residential • PUD 5 52 04 2024 • Appendices • Immense Value Opportunity 64
Slide 65: 17 Leslie St., Toronto, ON
17 Leslie st. Toronto , ON • 6-acre site • Close proximity to Queen Streetcar Q4 2024 • Appendices • Immense Value Opportunity 65
Slide 66: 10 Lower Jarvis St., Toronto, ON
10 Lower Jarvis St. • 4-acresite Toronto,ON • Core downtown location Q4 2024 • Appendices • Immense Value Opportunity 66
Slide 67: Greater Vancouver Area
Greater Vancouver Area • 19 properties in the GVA • Significant long-term development potential. Retail 16 Industrial 3 19 Q4 2024 • Appendices • Immense Value Opportunity 67
Slide 68: Montreal
Montreal • 37 properties in the GMA • Significant long-term development potential Retail 37 Industrial 2 39 Q4 2024 • Appendices • Immense Value Opportunity 68
Slide 69: ChoiceProperties
ChoiceProperties
Choice Properties Real Estate Investment Trust — FY2024 Earnings Presentation on 6ix