Smartcentres Real Estate Investment Trust · TSX:SRU.UN
Smartcentres Real Estate Investment Trust — Investor Presentation (November 2018)
77 slides from Smartcentres Real Estate Investment Trust's investor presentation, November 2018
Slide 1: Investor Presentation: Smart Today Smart Tomorrow
INVESTOR PRESENTATION Smart Today Smart Tomorrow Based on 3rd Quarter 2018 November 2018
Slide 2: Table of Contents
BASED ON 3 RD QUARTER 2018 INVESTOR PRESENTATION TABLE OF CONTENTS ▪ Track record of performance ▪ Portfolio overview ▪ Acquisitions ▪ Development / Intensification ▪ Financial highlights ▪ Development team ▪ Market factors ▪ Summary ▪ Appendix SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018
Slide 3: Notice to Reader
BASED ON 3 RD QUARTER 2018 INVESTOR PRESENTATION NOTICE TO READER Readers are cautioned that certain terms used in this Investor Presentation (“Presentation”) such as Funds from Operations ("FFO"), Adjusted Cashflow from Operations ("ACFO"), "Gross Book Value", "Payout Ratio", "Interest Coverage", "
Slide 4: Highlights
TRACK RECORD OF PERFORMANCE HIGHLIGHTS ▪ One of Canada’s premier REITs ▪ $5.0 billion equity capitalization ▪ $9.4 billion total asset value ▪ Approximately 20 million sf. of mixed-use development on 72 properties identified so far: • residential – apartments, condominiums, and townhomes • office bu
Slide 5: The Continuing Evolution
TRACK RECORD OF PERFORMANCE THE CONTINUING EVOLUTION 1994 2015 2018 SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 5
Slide 6: Total Return to Unitholders
TRACK RECORD OF PERFORMANCE TOTAL RETURN TO UNITHOLDERS 15.3% AVERAGE ANNUAL RETURN SINCE IPO (as of November 21, 2018) $1,200 $1,000 $985.96 $800 $600 $490.37 $400 $365.34 $200 $0 SmartCentres TSX Capped REIT TSX Composite SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTAT
Slide 7: Growth in Rental Revenue and FFO/Unit
TRACK RECORD OF PERFORMANCE GROWTH IN RENTAL REVENUE AND FFO/UNIT RENTAL REVENUE FFO (in millions of $) ($ per unit) 6.7% CAGR 4.4% CAGR since 2013 since 2013 728 741 2.17 2.20 670 2.10 608 1.95 573 1.85 2013 2014 2015 2016 2017 2013 2014 2015 2016* 2017 * Excludes $0.06 per unit of non-recurring in
Slide 8: Growth in Total Assets
TRACK RECORD OF PERFORMANCE GROWTH IN TOTAL ASSETS TOTAL ASSETS (in millions of $) 34.6% CAGR 9,380 8,739 since 2002 8,505 7,070 7,107 6,480 5,956 4,194 4,237 4,374 3,894 3,584 2,564 1,015 109 229 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 SMARTCENTRES REAL ESTAT
Slide 9: What Makes SmartCentres Strong
WHAT MAKES SMARTCENTRES STRONG AN EXCEPTIONAL OUTSTANDING OUR HEALTHY PIPELINE OF QUALITY OF OUR BALANCE SHEET MIXED-USE SHOPPING AND FINANCIAL GROWTH CENTRES & FLEXIBILITY INITIATIVES TENANTS CONSERVATIVE THE QUALITY PROPERTY AND DEPTH VALUATIONS AND OF OUR SIGNIFICANT DEVELOPMENT NAV GROWTH TEAM A
Slide 10: Value and Convenience in One Stop
PORTFOLIO OVERVIEW VALUE AND CONVENIENCE IN ONE STOP ▪ 34.3 million sf. of principally open format shopping centre space ▪ Average age: 14.6 years (youngest in the industry) • Lower capital expenditures ▪ Coast to coast locations • 84% are urban or near urban markets • 83% by square feet in Ontario,
Slide 11: Strategically Located
PORTFOLIO OVERVIEW STRATEGICALLY LOCATED PROVINCE 157 Properties* # Properties / # Intensification Properties 72 Intensification Properties 34.3M SF.* ALBERTA MANITOBA 8/2 3/1 BRITISH COLUMBIA QUEBEC 14 / 6 SASKATCHEWAN ONTARIO 23 / 18 ATLANTIC 5/2 94 / 43 10 / 0 * Excludes 7 development sites total
Slide 12: Market Conditions – Canada vs. United States
PORTFOLIO OVERVIEW MARKET CONDITIONS – CANADA VS. UNITED STATES ▪ Much lower square feet of retail per person (15 vs. 23) in Canada (traditionally drives higher rents per square foot) ▪ In both countries, luxury and discount retail brands are performing best, consistent with trend in population disc
Slide 13: Stable Income Base
PORTFOLIO OVERVIEW STABLE INCOME BASE LEASE MATURITY BY AREA (in millions of square feet) 1.6 1.6 2.2 1.8 1.2 0.9 0.8 0.7 0.6 0.7 1.5 0.8 0.7 0.4 1.9 0.7 1.4 1.4 1.5 0.2 0.2 1.1 0.5 1.2 0.3 0.5 0.7 0.3 0.4 0.7 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Month-to- Vacant month Walmart Other Anc
Slide 14: Well Tenanted, High Quality
PORTFOLIO OVERVIEW WELL TENANTED, HIGH QUALITY Top ten tenants by gross rental revenues of SmartCentres' Portfolio as of September 30, 2018: % of Average DBRS S&P Moody’s Number of Gross Tenant Remaining Credit Credit Credit Stores Rental Lease Term Rating Rating Rating Revenues Walmart 101 25.8 6.7
Slide 15: Current Leasing Environment
PORTFOLIO OVERVIEW CURRENT LEASING ENVIRONMENT ▪ All major national and regional retailers continue to grow and SmartCentres continues to deliver at 98% occupancy ▪ Value segment still growing – Dollar stores, Winners, Marshalls, HomeSense, sporting goods, services, and food ▪ Delivering additional
Slide 16: OneREIT Transaction Summary
ACQUISITIONS ONEREIT TRANSACTION SUMMARY Closed – Q4 2017 ▪ 12 Properties / $429 million ▪ 2.2 million sf. / 93% leased ▪ Ontario (10) / BC (1) / Saskatchewan (1) ▪ 10 Food-anchored / inclusive of 6 Walmarts ▪ NOI of $26 - $28 million (Year 1 to Year 2) ▪ FFO / Unit growth approximately $0.05 - $0.0
Slide 17: OneREIT Summary: In Effect Two Portfolios
ACQUISITIONS ONEREIT SUMMARY IN EFFECT TWO PORTFOLIOS A. Stability • 99.5% leased • Walmart Supercentre anchored • Very strong national tenants / covenants • Coupon clipper B. Growth & Stability • 90% leased • Redevelopment opportunity for part / all of each property • 100,000 sf. of future retail d
Slide 18: Growth Strategy
DEVELOPMENT / INTENSIFICATION GROWTH STRATEGY ▪ Continue review of every property for mixed-use intensification initiatives, with 72 properties specifically identified to date and encompassing over 155 intensification projects ▪ Joint venture relationships are being added to optimize investment retu
Slide 19: Ability to Execute
DEVELOPMENT TEAM ABILITY TO EXECUTE STRONG, PARTNER EXPERIENCED IN-HOUSE RELATIONSHIPS DEVELOPMENT TEAM GOVERNMENT/ CONSULTANT RELATIONSHIPS SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 19
Slide 20: In-House Development Team
DEVELOPMENT TEAM IN-HOUSE DEVELOPMENT TEAM Employees in Development & Leasing Related Functions: ▪ Number of People: 145 ▪ Number of Years Experience with SmartCentres • Average: 7.0 years • Total: 1,015 years ▪ Number of Years Experience in Real Estate • Average: 15.5 years ▪ Total: 2,250 years SMA
Slide 21: In-House Development Resources
DEVELOPMENT TEAM IN-HOUSE DEVELOPMENT RESOURCES ENVIRONMENTAL PLANNERS / GOVERNMENT ENGINEERS / GEOTECH DEVELOPERS RELATIONS SPECIALISTS LEASING CONSTRUCTION ARCHITECTS FINANCE / LAWYERS FINANCIAL MARKETING ANALYSTS SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 21
Slide 22: Strategic Relationships
STRATEGIC RELATIONSHIPS SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 22
Slide 23: Walmart Canada
STRATEGIC RELATIONSHIP WALMART CANADA NUMBER OF WALMART STORES 227 295 13 14 96 101 Supercentres (336)* Total Walmart Stores (410)* Other SmartCentres Shadow SmartCentres Tenants * Company source as at November 21, 2018 ▪ Walmart Canada attributes • Value pricing and fresh food generates huge traffi
Slide 24: Mitchell Goldhar
STRATEGIC RELATIONSHIP MITCHELL GOLDHAR M I TC HE LL GO LD HAR ▪ JV Partner • Vaughan Metropolitan Centre • StudioCentre / Eastern Avenue • Salmon Arm SmartCentre ▪ Consultant on development and mixed-use projects ▪ Executive Chairman, Trustee and Investment Committee member SMARTCENTRES REAL ESTATE
Slide 25: Simon Property Group
STRATEGIC RELATIONSHIP SIMON PROPERTY GROUP ▪ Largest public real estate company in the U.S. ▪ Engaged primarily in retail real estate properties including regional malls, Premium Outlets and The Mills® ▪ Exceptional relationships with the world’s largest retailers provides strong tenant base for Pr
Slide 26: Condominiums with CentreCourt
STRATEGIC RELATIONSHIP TRANSIT CITY CONDOS CONDOMINIUMS WITH CENTRECOURT ▪ Partner for first three 55-storey sold-out towers at VMC ▪ GTA focused: • 2,000 units completed • 4,000 units under active construction ▪ Initial discussions for further VMC towers and other projects SMARTCENTRES REAL ESTATE
Slide 27: Retirement Homes with Revera
STRATEGIC RELATIONSHIP RETIREMENT HOMES WITH REVERA ▪ Leading owner, operator and investor in the senior living sector through various partnerships own over 500 properties in Canada, the United States, and the United Kingdom serving over 55,000 seniors ▪ Joint venture with Revera, one of Canada’s la
Slide 28: Self-Storage with SmartStop
STRATEGIC RELATIONSHIP SELF-STORAGE WITH SMARTSTOP ▪ Diversified real estate company focused on self storage assets, along with student and senior housing. Portfolio currently includes 65,000 self storage units, 7.5 million rentable square feet and $1 billion of real estate assets under managementBu
Slide 29: Jadco Corporation
STRATEGIC RELATIONSHIP JADCO CORPORATION ▪ Well reputed family-owned business ▪ Has gained a strong foothold in the residential sector in the Greater Montreal Area ▪ Strengths lie in its commitment to excellence in building exceptional living and mixed-used environments ▪ Diversified portfolio compr
Slide 30: Fieldgate Homes
STRATEGIC RELATIONSHIP FIELDGATE HOMES ▪ Private company in residential development business for more than 60 years ▪ Primarily focused on GTA ▪ Over 12,000 homes built SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 30
Slide 31: Only "Omni Channel" Landlord
STRATEGIC RELATIONSHIP ONLY “OMNI CHANNEL” LANDLORD Penguin Pick Up & Penguin Fresh SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 31
Slide 32: Growth Initiatives
DEVELOPMENT / INTENSIFICATION GROWTH INITIATIVES VAUGHAN RESIDENTIAL METROPOLITAN RETAIL CENTRE APARTMENT SENIOR BUILD-OUT OF RENTALS RESIDENCES EXISTING PREMIUM SELF- CONDOMINIUMS OUTLETS STORAGE CENTRES TOWNHOUSES OFFICE SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATI
Slide 33: Technology Initiatives
DEVELOPMENT / INTENSIFICATION TECHNOLOGY INITIATIVES MOBILE CHARGING DIGITAL ADVERTISING STATIONS SIGNS WIFI ADVERTISING BUILDING NETWORKS KIOSKS SYSTEMS ALL INITIATIVES DESIGNED TO CREATE VALUE ADD FOR VISITORS TO OUR SITES AND ALSO DRIVE ADDITIONAL REVENUE SMARTCENTRES REAL ESTATE INVESTMENT TRUST
Slide 34: Major Mixed-Use Real Estate Initiatives
DEVELOPMENT / INTENSIFICATION MAJOR MIXED-USE REAL ESTATE INITIATIVES Estimated Costs ($M) Estimated Gain on Final Sale GLA SRU 100% Site Project Type ('000sf) / Completion % Share Share SRU Share Yield Profit % SRU Share Timing Units Year 1. VMC (Office Towers) a. KPMG (T#1) Office 360sf 2016 50% $
Slide 35: Major Mixed-Use Real Estate Initiatives (continued)
DEVELOPMENT / INTENSIFICATION MAJOR MIXED-USE REAL ESTATE INITIATIVES Estimated Costs ($M) Estimated Gain on Final Sale GLA SRU 100% Site Project Type ('000sf) / Completion % Share Share SRU Share Yield Profit % SRU Share Timing Units Year (3) 11. VMC (Apartments) VMC Rental Apartments 320 Units 202
Slide 36: Mixed-Use Intensification and Retail Developments
DEVELOPMENT / INTENSIFICATION INITIATIVES MIXED-USE RETAIL INTENSIFICATION DEVELOPMENTS UNDERWAY ACTIVE FUTURE UNDERWAY ACTIVE FUTURE 33 43 82+ 29 37 2+ 158+ Projects (on 72 Properties) SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 36
Slide 37: By Asset Class
DEVELOPMENT / INTENSIFICATION BY ASSET CLASS SELF-STORAGE UNDERWAY ACTIVE FUTURE 13 14 11+ OFFICE UNDERWAY ACTIVE 1 2 SENIORS RESIDENCES UNDERWAY ACTIVE FUTURE 2 7 26+ SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 37
Slide 38: By Asset Class
DEVELOPMENT / INTENSIFICATION BY ASSET CLASS APARTMENT RENTALS UNDERWAY ACTIVE FUTURE 9 7 22+ CONDOMINIUMS UNDERWAY ACTIVE FUTURE 7 9 13+ TOWNHOUSES UNDERWAY ACTIVE FUTURE 1 4 10+ SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 38
Slide 39: By Asset Class
DEVELOPMENT / INTENSIFICATION BY ASSET CLASS RETAIL BUILD-OUT EXISTING UNDERWAY ACTIVE 23 34 PREMIUM OUTLET CENTRES EXISTING EXPANSIONS FUTURE 2 2 2 SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 39
Slide 40: Vaughan Metropolitan Centre (VMC) Toronto
DEVELOPMENT / INTENSIFICATION VAUGHAN METROPOLITAN CENTRE (VMC) TORONTO ▪ A long term build (10 – 15 years) ▪ A 50:50 JV between SmartCentres and Penguin Investments. Mitchell Goldhar intimately involved in all aspects of the project ▪ Potential density of 18 – 19 million sf. of residential, office
Slide 41: VMC Toronto: Aerial Overview
DEVELOPMENT / INTENSIFICATION VMC TORONTO Aerial Overview – Existing Conditions SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 41
Slide 42: VMC Toronto: Transit Overview
DEVELOPMENT / INTENSIFICATION VMC TORONTO Transit Overview SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 42
Slide 43: VMC Toronto: Master Plan
DEVELOPMENT / INTENSIFICATION VMC TORONTO Master Plan SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 43
Slide 44: VMC Toronto: Central Park
DEVELOPMENT / INTENSIFICATION VMC TORONTO Central Park SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 44
Slide 45: VMC Toronto: Aerial Towers Superimposed
DEVELOPMENT / INTENSIFICATION VMC TORONTO Aerial – 3 Towers Superimposed SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 45
Slide 46: VMC Toronto: KPMG Tower Lobby
DEVELOPMENT / INTENSIFICATION VMC TORONTO KPMG Tower Lobby SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 46
Slide 47: VMC Toronto: PwC-YMCA Tower Rendering
DEVELOPMENT / INTENSIFICATION VMC TORONTO PwC-YMCA Tower Rendering SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 47
Slide 48: VMC Toronto: PwC-YMCA Construction
DEVELOPMENT / INTENSIFICATION VMC TORONTO PwC-YMCA – Construction SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 48
Slide 49: VMC Toronto Phases 1 & 2 Office
DEVELOPMENT / INTENSIFICATION VMC TORONTO PHASES 1 & 2 OFFICE ▪ KPMG Tower complex with 365,000 sf. of LEED Gold space, opened in 2016 (300,000 sf. of office space 100% leased) ▪ 16th Annual Real Estate Excellence (REX) Award for Office Development of the Year for the GTA ▪ Tenants include: ▪ Second
Slide 50: VMC Toronto Residential
DEVELOPMENT / INTENSIFICATION VMC TORONTO RESIDENTIAL ▪ First residential development is a JV with CentreCourt Developments, an experienced GTA-based condominium developer ▪ Initial plan was for a 55 story condominium tower with over 500 suites, anchored by a BUCA-branded restaurant and BAR BUCA, to
Slide 51: VMC Toronto: Transit City Towers Under Construction
DEVELOPMENT / INTENSIFICATION VMC TORONTO Transit City 1, 2 & 3 Towers Under Construction SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 51
Slide 52: VMC Toronto: Transit City East Block Rendering
DEVELOPMENT / INTENSIFICATION VMC TORONTO Rendering of Transit City in the East Block SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 52
Slide 53: Vaughan NW Toronto Residential
DEVELOPMENT / INTENSIFICATION VAUGHAN NW TORONTO RESIDENTIAL ▪ Existing Walmart anchored shopping centre at Major Mackenzie Drive and Weston Road in Vaughan ▪ JV with Fieldgate on 16-acre site for up to 230 freehold townhomes to be built, municipal approval for Phase 1 and construction to commence i
Slide 54: Vaughan NW Toronto: Mixed-Use
DEVELOPMENT / INTENSIFICATION VAUGHAN NW TORONTO Mixed-Use SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 54
Slide 55: Vaughan NW Toronto: Upon Completion
DEVELOPMENT / INTENSIFICATION VAUGHAN NW TORONTO Upon Completion SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 55
Slide 56: Premium Outlets with Simon Property Group
TORONTO DEVELOPMENT / INTENSIFICATION PREMIUM OUTLETS WITH SIMON PROPERTY GROUP ▪ Toronto Premium Outlets • 500,000 sf. when fully completed • Phase I opened Aug. 1, 2013 • Phase II – new parking facility opened in Nov. 2017 as part of expansion and construction on the expansion buildings completed
Slide 57: Toronto Premium Outlets: 144,000 Square Foot Expansion
DEVELOPMENT / INTENSIFICATION TORONTO PREMIUM OUTLETS 144,000 Square Foot Expansion SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 57
Slide 58: Expansion Grand Opening
EXPANSION GRAND OPENING NOV 15, 2018 SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 58
Slide 59: Laval Centre Montreal
DEVELOPMENT / INTENSIFICATION LAVAL CENTRE MONTREAL ▪ Lands designated by City as “Centre-Ville”, due to highway and transit access ▪ 43 acre site anchored by a 160,000 square foot Walmart Supercentre ▪ Parcels of land sold to others for seniors housing, hotel and office development of 400,000 sf. ▪
Slide 60: Laval Centre Montreal: Original Plan
DEVELOPMENT / INTENSIFICATION LAVAL CENTRE MONTREAL Original Plan SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 60
Slide 61: Laval Centre Montreal: With Jadco Apartment Units
DEVELOPMENT / INTENSIFICATION LAVAL CENTRE MONTREAL With Jadco – 338 Apartment Units SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 61
Slide 62: Laval Centre Montreal: Current Plan
DEVELOPMENT / INTENSIFICATION LAVAL CENTRE MONTREAL Current Plan SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 62
Slide 63: Pointe-Claire Montreal
DEVELOPMENT / INTENSIFICATION POINTE-CLAIRE MONTREAL ▪ Walmart and Home Depot anchored site in West Montreal purchased in 2016 ▪ Very well-located site – transit (new light rail transit line to downtown) and road access ▪ Master planning activities moving forward with strong support from council ▪ S
Slide 64: Pointe-Claire Montreal: Existing Conditions
DEVELOPMENT / INTENSIFICATION POINTE-CLAIRE MONTREAL FUTURE REM STATION Existing conditions ST-JEAN BOUL HYMUS BOUL SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 64
Slide 65: Pointe-Claire Montreal: Perspective Rendering
DEVELOPMENT / INTENSIFICATION POINTE-CLAIRE MONTREAL Perspective from St. Jean Blvd. and Hymus Blvd. ST-JEAN BOUL HYMUS BOUL SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 65
Slide 66: Vedder Road Chilliwack Mall: Aerial Existing Conditions
DEVELOPMENT / INTENSIFICATION CHILLIWACK MALL Aerial – Existing Conditions Sto:Lo First Nation ALR Lands Residential Rental Residential KNIGHT ROAD Residential Condo Rental Kekinow Native Housing Society Chilliwack Mall VEDDER ROAD LUCKAKUCK WAY Cottonwood Mall (Morguard) SMARTCENTRES REAL ESTATE IN
Slide 67: Chilliwack Mall: Aerial Existing Conditions
DEVELOPMENT / INTENSIFICATION CHILLIWACK MALL Aerial – Existing Conditions Legend Existing Buildings Existing Signalized New CRU fronting Luckakuck Way Existing Existing Existing Intersection Full Moves Signalized RI/RO New CRU fronting Seniors’ Residence Access Intersection New Residential New Seni
Slide 68: Chilliwack Mall: Proposed Redevelopment Plan
DEVELOPMENT / INTENSIFICATION CHILLIWACK MALL Proposed Redevelopment Plan Building G1/G2 (16,737 sf) Building E (9,000 sf) Building D (7,080 sf) Building C (7,250 sf) Building B (5,488 sf) Winners/HomeSense Safeway (46,544 sf) (44,126 sf) Sport Chek (23,715 sf) Residential Residential or Seniors’ Re
Slide 69: Westside Mall Toronto
DEVELOPMENT / INTENSIFICATION WESTSIDE MALL TORONTO ▪ Urban redevelopment site. Currently a 140,000 square foot shopping centre ▪ New Light Rapid Transit (LRT) station as part of Eglinton Cross Town system to open on site ▪ New links to existing GO network will link new East:West to existing North:S
Slide 70: Westside Mall Toronto: Architect's Rendering
DEVELOPMENT / INTENSIFICATION WESTSIDE MALL TORONTO Architect’s Rendering LRT STATION EGLINTON AVE SMARTCENTRES REAL ESTATE INVESTMENT TRUST NOVEMBER 2018 - INVESTOR PRESENTATION 70
Slide 71: StudioCentre Toronto
DEVELOPMENT / INTENSIFICATION STUDIOCENTRE TORONTO ▪ StudioCentre is a brownfield location next to Toronto’s eastern waterfront. A former industrial site, today it is a well- utilized film production centre ▪ SmartCentres and Penguin Investments intend to revitalize the centre, adding new film produ
Slide 72: Balance Sheet Supports Extensive Asset Growth
KEY FINANCIAL HIGHLIGHTS BALANCE SHEET SUPPORTS EXTENSIVE ASSET GROWTH ▪ Unencumbered pool at $4.1 billion = flexibility ▪ Ready access to mortgage and unsecured debt capital when needed = strong liquidity ▪ Payout ratio to ACFO at 81.2% as of Q3 2018 ▪ Current interest rates still lower than maturi
Slide 73: Debt Maturity / Leverage (Including OneREIT Acquisition)
KEY FINANCIAL HIGHLIGHTS DEBT MATURITY / LEVERAGE (INCLUDING ONEREIT ACQUISITION) DEBT MATURITY (in millions of $) 400 328 308 300 275 250 250 200 173 160 160 140 150 102 119 100 87 48 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 THEREAFTER Secured Debt Debentures ▪ Interest costs on refinancin
Slide 74: Leverage Profile
KEY FINANCIAL HIGHLIGHTS LEVERAGE PROFILE Sep. 30 Dec. 31 Dec. 31 Dec. 31 2018 2017 2016 2015 Debt to Aggregate Assets 44.3% 45.4%(1) 44.3% 44.7% Secured Debt to Aggregate Assets 23.3% 26.1% 29.5% 31.2% Unencumbered Assets $4.1B $3.4B $2.7B $2.5B Debt to Adjusted EBITDA 8.4X 8.4X 8.4X 8.4X Interest
Slide 75: Conservative Capital Structure
KEY FINANCIAL HIGHLIGHTS CONSERVATIVE CAPITAL STRUCTURE Secured Mortgage Financing Amount - $2.1 billion $9.3 Billion 22.6% Weighted Avg Interest Rate – 3.86% Total Enterprise Value Weighted Avg Term to Maturity – 4.4 years Unsecured Debentures Focused on: Amount - $1.8 billion 19.4% Weighted Avg In
Slide 76: Stable Cash Flow
KEY FINANCIAL HIGHLIGHTS STABLE CASH FLOW PAYOUT 83.1% 81.8% 81.2% RATIO TO ACFO 2013 2014 2015 2016 2017 Q3 2018 ($ per unit) FFO 1.85 1.95 2.10 2.17* 2.20 1.71** ACFO NP NP NP 2.00* 2.10 1.60** Distributions 1.55 1.56 1.61 1.66 1.71 1.31** * Excludes $0.06 per unit of non-recurring income ** For t
Slide 77: The Best Offense Starts with a Strong Defense
SUMMARY THE BEST OFFENSE STARTS WITH A STRONG DEFENSE BEST-IN-CLASS STRONG PIPELINE PORTFOLIO FINANCIAL OF NEW Youngest retail portfolio POSITION DEVELOPMENT amongst all Canadian Strong balance sheet OPPORTUNITIES peers. 84% located in and strong credit metrics. GROWING EVERY urban or near urban Gro
SmartCentres Real Estate Investment Trust — Investor Presentation (November 2018) on 6ix