Choice Properties Real Estate Investment Trust · TSX:CHP.UN
Choice Properties Real Estate Investment Trust — Q3 2023 Earnings Presentation
71 slides from Choice Properties Real Estate Investment Trust's earnings presentation, Nov 9, 2023
Slide 1: Delivering Today. Building for the Future. Q3 2023
Delivering Today. Building for the Future. Q3 2023 Investor Presentation Choice propeties
Slide 2: Forward Looking Statement
Forward Looking Statement 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 (the "Trust”) future outlook and anticipated events or results and may include stat
Slide 3: Q3 2023 Financial Performance
Q3 2023 Financial Performance Q3 2023 GL2 2023 Q3 2022 $0.254/unit $0.239/unit FFO $0.250/unit -1.6% +4.6% $0.235/unit $0.180/unit AFFO $0.189/unit -19.6% +5.0% 97.4% 97.7% Occupancy 97.7% +0.3% -- Same-Asset NOI, Cash $233.1 M $225.7M $235.8M Basis +1.1% +4.4% Adjusted Debt-to- 7.4x 7.4x 7.4x EBITD
Slide 4: Contents
Contents • Creating Enduring Value Canada's Preeminent REIT • Proven Strategic Framework • Our Near-Term Focus • Three Strategic Asset Classes • A Snapshot of Choice • Stable and Consistent Occupancy Market Leading Portfolio • Long-Term Leases • Winning Retail Portfolio • High-Demand Industrial • Mi
Slide 5: Canada's Preeminent REIT
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Slide 6: Canada's Preeminent REIT
Canada’s Preeminent REIT We lead where it matters most Unmatched Strategic Relationship with Largest in Canada(1) Necessity-Based Portfolio Canada’s Leading Retailer high-quality Necessity-based 704 properties 81% retail portfolio*2) 57% Loblaw tenancy(3) Loblaw relationship provides an 3 strategic
Slide 7: Creating Enduring Value
Creating Enduring Value Choice Properties is a leading Real Estate Investment Trust that creates enduring value through the ownership, operation and development of high-quality commercial and residential properties. We believe that value comes from creating spaces that improve how our tenants and co
Slide 8: Proven Strategic Framework
Proven Strategic Framework Creating Preservation Stable and growing Increases in NAV and GOALS Enduring Value: of capital cash flows distribution overtime 1 Maintaining Care market-leading portfolio PRIORITIES Ownership VALUES 2 Sustaining operational excellence Respect CORE Delivering 3 Values Exce
Slide 9: Our Near-Term Focus
Our Near-Term Focus 1 Maintaining Sustaining Delivering 2 3 Priorities market-leading operational development portfolio excellence pipeline Executing on our near-term Maximizing value in our Industrial opportunity Building for core asset classes Delivering best-in-class property operations capabilit
Slide 10: Market Leading Portfolio
Market Leading Portfolio
Slide 11: Three Strategic Asset Classes
Three Strategic Asset Classes Strategically positioned across three asset classes Retail Industrial Mixed-Use & Residential NOI,CashBasis(1) 2 80% 15% 5% Income Producing PropertiesAssetValue(2) 72% 23% 5% Predominately Flexible well- Transit oriented necessity-based located industrial mixed-use and
Slide 12: A Snapshot of Choice
A Snapshot of Choice (1) 704 Income Producing Properties Number of Square Footage Properties (M) Value(3) Retail(2) 577 44.4 $11.0B Industrial(2) 117 17.8 3.6B Mixed-Use & 10 2.0 0.8B Residential Properties Under -- -- 1.1 B Development Total 704 64.2 $16.5B (1) Calculated as a % of cash NOI for the
Slide 13: Stable and Consistent Occupancy
Stable and Consistent Occupancy Period-End Occupancy Occupancy by Asset Class Retail 97.7% Industrial 98.3% Mixed-Use & 88.6% Residential(1) Total 97.7% (1) Segment includes remaining office properties; occupancy disclosed excludes residential units
Slide 14: Long-Term Leases
Long-Term Leases Lease profile provides cash flow stability Lease Expiry by Year Loblaw Other % of Portfolio Weighted Average Lease Term Loblaw Ancillary Total 6.1 5.0 5.6 years years years
Slide 15: Winning Retail Portfolio
W inning Retail Portfolio Necessity-based, well-located assets supported by strong anchor tenants
Slide 16: Winning Retail Portfolio
Winning Retail Portfolio Necessity-based, well-located assets supported by strong anchor tenants 44.4M 577 sq. ft. of GLA(1) properties $11.0B 97.7% Fair value Occupancy (1) GLA excludes ground leases
Slide 17: Strong Necessity-Based Retail Anchor Tenants
Strong Necessity-Based Retail Anchor Tenants Reliable and stable cash flow +63% of revenue from Loblaw banners +67% of revenue is from grocery and pharmacy +81% of revenue from necessity-based retail Calculated as a % of the retail segment’s gross rental revenue as at September 30, 2023
Slide 18: Winning Retail Footprint
(1) Winning Retail Footprint 87% of properties located at key intersections Square Footage Necessity- (M)(2) NOI(1) based(3) Neighbourhood Centres 39.1 87% 89% Power Centres 5.3 13% 35% Total 44.4 81% (1) Calculated as a % of cash NOI for the three months ended September 30, 2023 (2) Square footage
Slide 19: Strong Tenant Retention
Strong Tenant Retention Reliable and stable cash flow Lease Expiry by Year 97.7% in-place occu pa ncy • Staggered renewals • High-probability of renewal • Strong-covenant tenants
Slide 20: High-Demand Industrial
High-Demand Industrial High-quality generic industrial assets in key distribution markets
Slide 21: High-Demand Industrial
High-Demand Industrial High-quality generic industrial assets in key distribution markets 17.8M 98.3% sq. ft. of GLA(1) Occupancy $3.6B 117 Fair value Properties (1) GLA excludes ground leases
Slide 22: High-Demand Industrial
(1) High-Demand Industrial 84% of industrial assets are generic and nigh quality Square Footage (M)(2) % of Total Distribution 14.9 84% warehouse(3) 2.9 16% Total GLA 17.8 (1) Calculated as a % of cash NOI for the three months ended September 30, 2023 (2) Square footage excludes ground leases (3) Wa
Slide 23: Resilient Industrial Tenant Base
Resilient Industrial ~ 27% Tenant Base Loblaw gross Revenue(1) Top 10 Tenants 1 Loblaws 2 Amazon 3 Canada Cartage 4 Wonderbrands Inc. 5 NFIIPD 6 Uline Canada Corporation 7 Canadian Tire 8 Kimberly-Clark 9 Alberta Gaming, Liquor and Cannabis 10 ECCO Heating Products (1) Calculated as a % of the indus
Slide 24: Significant Embedded Growth
Significant Embedded Growth Major Market Breakdown Market Choice $8.67 Avg. Rent(2) Avg. Rent(1) Vancouver $21.80 $11.69 Choice avg. in-place rent{1) Calgary $11.27 $8.02 $16.36 Greater Toronto Area $18.35 $8.53 Market avg. rent(2) Greater Montreal Area $16.52 $9.40 (1) Average in-place rent per squ
Slide 25: Mixed-Use & Residential
Mixed-Use & Residential Purpose built rental in key markets
Slide 26: Mixed-Use & Residential
Mixed-Use & Residential Purpose built rental in key markets 2.0 M 10 sq. ft. of GLA(1) Properties $0.8B 88.6% Fair value Occupancy(2) (1) 2.0 million sq. ft. of GLA includes 0.5 million sq. ft. associated with Choice’s 646 residential units (2) Occupancy shown is for retail and office portion of Mix
Slide 27: Mixed-Use & Residential Properties
Mixed-Use & Residential Properties West Block The Weston Centre Liberty House The Brixton Mixed-Use Mixed-Use Residential Residential Toronto, ON Toronto, ON Toronto, ON Toronto, ON GLA (sq. ft.) 259K GLA (sq. ft.) 329K Units 440 units Units 397 units Ownership 100% Ownership 100% Ownership 50% Owne
Slide 28: Transformational Development
Transformational Development
Slide 29: 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 7.4M sq. ft of high-qua
Slide 30: Maximizing Development Opportunities
Maximizing Development Opportunities Our competitive advantages Land Cost Redevelopment Key Locations Competitive land cost base Developing on existing Developments located across development sites income producing •_ retail in key markets Sites Transit Oriented Loblaw Advantage Integrating ESG Focu
Slide 31: Development Pipeline 18.5M sq.ft.
Development Pipeline 18.5M sq.ft. Active Zoned and Ready In Planning Total(1) sq. ft. 2.7M sq. ft. 9.0M sq. ft. 6.8M sq. ft. 18.5M Retail 0.3M Retail 0.2M Retail n/a Retail 0.5M Industrial 2.2M Industrial 5.2M Industrial n/a Industrial 7.4 M Mixed-Use Mixed-Use Mixed-Use Mixed-Use & Residential 0.2M
Slide 32: Prudent Financial Management
Prudent Financial Management
Slide 33: 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 market-leading • Delive
Slide 34: Significant Financial Capacity
Significant Financial Capacity 1.5x BBB (High) below peer average(2) DBRS credit rating $12.4B unencumbered assets(1) $1.5B unused portion of revolving credit facility(1) (3) (4) (1) As at September 30, 2023 Adjusted Debt to EBITDAFV (2) Source: Q2 2023, RBC Research Reports (3) Represents a non-GAA
Slide 35: Capital Structure Targets
Capital Structure Targets Maintaining financial stability Mortgages and $1.6B 9% Secured Facilities(5) Q.3 2023 Target Range Unsecured $5.7B Unused portion of Debentures $1.5B > $1.0B revolving credit facility Unsecured Credit 32% Facility $0.0B Adjusted debt to ($I.5B total capacity) EBITDAFV(1)(2)
Slide 36: Debt Maturity Profile
(1) Debt Maturity Profile 4.03% 6.0 Well-balanced debt ladder Years WAIR(2) WATM(2) Senior Unsecured Mortgages and Senior Unsecured Senior Unsecured % of Debt Green Debentures Construction Loans Facility Debentures (1) As of September 30, 2023, on a proportionate share basis (2) Reflects only senior
Slide 37: Environment, Social & Governance Program
Environment, Social & Governance Program
Slide 38: Building Healthy, Resilient Communities
Building Healthy, Resilient Communities ESG program is focused Commitment to ESG practices is around two pillars which integral to our purpose of align with stakeholder creating enduring value. interests: Aspire to develop healthy, Fighting resilient communities through our Climate Change dedication
Slide 39: Fighting Climate Change
Fighting Climate Change Committed to doing our part to preserve our planet’s resources for current and future generations. Net-Zero Climate Action One of the first entities to Published inaugural Pathway have its net zero emissions to Net Zero report outlining targets validated by the the necessary
Slide 40: Advancing Social Equity
Advancing Social Equity Hold ourselves accountable for advancing diversity, equity and inclusion for all stakeholders. We view the collection of varied experiences, talents and perspectives as a strength. Culture Diversity Named one of Greater Achieved the Women Lead Here Toronto’s Top Employers 202
Slide 41: Strong Governance
Strong Governance Dedicated to governance practices designed to maintain high standards of oversight, accountability, ethics and compliance. Recognition Suppliers Achieved an ISS ESG Prime Released our Supplier Code rating and improved GRESB of Conduct and Rating to 4-star (scored 82 on a implemente
Slide 42: Appendices
Appendices ChoiceProperties
Slide 43: Transformational Industrial Development
Transformational Industrial Development
Slide 44: Choice Industrial Centre, Surrey, BC
Choice Industrial Centre Surrey, BC • 17-acre • 353K sq. ft. • Well situated in Campbell Heights industrial node • New generation logistic facility • Pursuing LEED Silver certification Q3 2023 • Appendices • Transformational Industrial Development 44
Slide 45: Choice Eastway Industrial Centre – Phase 1
Choice Eastway Industrial Centre – Phase 1 • 100-acre ground lease with East Gwillimbury , ON Loblaw • 1.2M sq. ft. • Automated, multi- temperature industrial facility • Strategically located at corner of Hwy 404 and Green Lane E. • Partner: Rice Group Q3 2023 • Appendices • Transformational Industr
Slide 46: Choice Caledon Business Park
Choice Caledon Business • 380-net acres of industrial development land Park • Excellent access to major highways and intermodals Caledon, ON • Strong labour pool • Multi-phase industrial park • New generation logistic space • Phase 1 underway: 90-acre ground lease with Loblaw • Partner: Rice Group Q
Slide 47: Active Residential Development
Active Residential Development
Slide 48: Mount Pleasant Village
Mount Pleasant Village • 444 units Brampton, ON • Directly adjacent to Mount Pleasant GO station • Geothermal System offers low-carbon heating & cooling • Partner: Daniels Q3 2023 • Appendices • Active Residential Development 48
Slide 49: Element, Ottawa
Element • 252 units Ottawa, ON • Located in trendy Westboro neighbourhood • Close proximity to transit • Partner: Woodbourne Canada Q3 2023 • Appendices • Active Residential Development 49
Slide 50: Mixed-Use & Residential in Planning
Mixed-Use & Residential in Planning
Slide 51: Grenville & Grosvenor, Toronto
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 Q3 2023 • Appendices • Mixed-Use & Residential in Planning 51
Slide 52: Golden Mile, Toronto
• 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 Q3 2023 • Appendices • Mixed-Use & Residential in Planning 52
Slide 53: Golden Mile Phase 1, Toronto
Golden Mile Phase 1 Toronto, ON • 1 rental tower and 2 condo towers • 1,350 units • Mixed-use • Community innovation district • Partner: Daniels
Slide 54: 720 Broadview Ave., Toronto
720 Broadview Ave. • 3.3-acresite Toronto, ON • 500 units • 1 residential building • Directly across from Broadview TTC subway station • New grocery store • Dedicated public park
Slide 55: 2280 Dundas St. W - Toronto, ON
2280 Dundas St. W - Toronto, ON Q3 2023 • Appendices • Mixed-Use & Residential in Planning 55
Slide 56: 2280 Dundas St. W, Toronto
2280 W Dundas st. • 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 Q3 2023 • Appendices • Mixed-Use & Residential in Planning 56
Slide 57: Parkway Forest Dr., Toronto
Parkway Forest Dr. • 3-acre site Toronto, ON • 339 units • 1 residential building • Close proximity to Don Mills TTC subway station • Partner: Woodbourne Canada Q3 2023 • Appendices • Mixed-Use & Residential in Planning 57
Slide 58: 25 Photography Dr. - Toronto, ON
25 Photography Dr. - Toronto, ON Q3 2023 • Appendices • Mixed-Use & Residential in Planning 58
Slide 59: 25 Photography Dr., Toronto
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 Q3> 2023 • Appendices • Mixed-Use & Residential in Planning 59
Slide 60: Warden Ave., Toronto
685 Warden • 6.5-acre site AVE. • 1,500 units Toroto. ON • 6 residential buildings • Directly adjacent to Warden TTC subway station • Dedicated public park Q3 2023 • Appendices • Mixed-Use & Residential in Planning 60
Slide 61: 985 Woodbine Ave. - Toronto, ON
985 Woodbine Ave. - Toronto, ON Q3 2023 • Appendices • Mixed-Use & Residential in Planning 61
Slide 62: 985 Woodbine Ave., Toronto
985 Woodbine Ave. • 1.7-acre site in Toronto, ON Downtown Toronto • Two mid-rise rental residential buildings • 400 units • Directly adjacent to Woodbine TTC subway station • Grocery retail at-grade Q3 2023 • Appendices • Mixed-Use & Residential in Planning 62
Slide 63: 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 Q3 2023 • Appendices • Mixed-Use & Residential in Planning 63
Slide 64: 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 65: Toronto
Toronto • 51 properties in the City of Toronto • Significant long-term development potential Retail 40 Industrial 1 Mixed-use, Residential 5 and Other PUD 5 51 Q3 2023 • Appendices • Immense Value Opportunity 65
Slide 66: Leslie St., Toronto
17 Leslie st. Torato , ON • 6-acre site • Close proximity to Queen Streetcar Q3 2023 • Appendices • Immense Value Opportunity 66
Slide 67: 10 Lower Jarvis St., Toronto
10 Lower Jarvis St. • 4-acresite Toronto, ON • Core downtown location Q3 2023 • Appendices • Immense Value Opportunity 67
Slide 68: Greater Vancouver Area
Greater Vancouver Area • 19 properties in the GVA • Significant long-term development potential. Retail 16 Industrial 3 19 03 2023 • Appendices • Immense Value Opportunity 68
Slide 69: 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 03 2023 • Appendices • Immense Value Opportunity 69
Slide 70: Montréal
Montréal • 38 properties in the GMA • Significant long-term development potential Retail 36 Industrial 2 38 Q3 2023 • Appendices • Immense Value Opportunity 70
Slide 71: ChoiceProperties
ChoiceProperties
Choice Properties Real Estate Investment Trust — Q3 2023 Earnings Presentation on 6ix