First Capital Real Estate Investment Trust · TSX:FCR.UN
First Capital Real Estate Investment Trust — Q3 2019 Earnings Presentation
18 slides from First Capital Real Estate Investment Trust's earnings presentation, November 2019
Slide 1: Q3 2019
Q3 2019
Slide 2: Forward-looking Statements and Non-IFRS Financial Measures
Forward-looking Statements and Non-IFRS Financial Measures This material may contain forward-looking statements, including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend” and similar expressions to the extent they relate to First Capital Realty Inc
Slide 3: Opening Remarks
Opening Remarks ADAM PAUL PRESIDENT & CEO
Slide 4: Q3 2019 Highlights
Q3 2019 Highlights FFO per Average Net NAV per share Occupancy Rental Rate share Key Metrics $0.343 96.7% $20.65 $23.08 14.0% 20bps 2.5% 2.4% Year over Year Growth Shops at King Liberty Griffintown Centre Toronto, ON Montreal, QC 4
Slide 5: Financial Overview
Financial Overview KAY BREKKEN EVP & CHIEF FINANCIAL OFFICER
Slide 6: Q3 2019 FFO Results
Q3 2019 FFO Results Q3 FFO per share up 14.0% to $0.343 Q3 2019 Q3 2018 Variance % Change YTD 2019 YTD 2018 Variance % Change FFO/share $0.343 $0.301 $0.042 14.0% $0.945 $0.923 $0.022 2.4% FFO ($ millions) $75.6 $76.5 ($0.9) (1.2%) $221.5 $229.6 ($8.1) (3.5%) Major Contributors (YOY change in $ mill
Slide 7: Q3 2019 Highlights – Operating Metrics
Q3 2019 Highlights – Operating Metrics Q3 2019 Same Property NOI increase of 1.5%, YTD 2019 up 2.9% Same Property NOI Growth Q3 2019 Q3 2018 (1) YTD 2019 YTD 2018 (1) Same Property – Stable 0.9% 2.4% 2.2% 2.9% Total Same Property 1.5% 2.5% 2.9% 3.1% (1) Prior periods as reported; not restated to ref
Slide 8: Q3 2019 Highlights – Operating Metrics
Q3 2019 Highlights – Operating Metrics Q3 2019 strong lease renewal rate increases of 10.4% and 11.8% Q3 2019 Q3 2018 YTD 2019 YE 2018 Total Same Other Property Total Total Portfolio (GLA reported at FCR %) Property Categories Portfolio Renewal leasing (sq. ft.) 469,000 77,000 546,000 643,000 1,748,
Slide 9: Q3 2019 Highlights – Operating Metrics
Q3 2019 Highlights – Operating Metrics Average Net Rental Rate grew 2.5% from Q3 2018 Q3 2019 Q3 2018 YTD 2019 2018 Total Same Other Property Total Total Portfolio (GLA reported at FCR %) Property Categories Portfolio Developments coming online (sq. ft.) 8,000 89,000 97,000 76,000 178,000 283,000 De
Slide 10: Q3 2019 Highlights – Operating Metrics
Q3 2019 Highlights – Operating Metrics Occupancy rate up 20 basis points from Q3 2018 to 96.7% Q3 2019 Q3 2018 Q2 2019 Total Same Total Total Same Total Total Same Total (GLA reported at FCR %) Property Portfolio Property (1) Portfolio Property (1) Portfolio Gross Leasable Area (sq. ft.) 18,289,000
Slide 11: Investment in Development and Redevelopment
Investment in Development and Redevelopment $47.1 million during Q3 2019 Yorkville Village Assets 3080 Yonge Street Toronto, ON Toronto, ON King High Line Edmonton Brewery District Centre Commercial Wilderton Toronto, ON Edmonton, AB Montreal, QC 11
Slide 12: FFO
FFO Q3 FFO per share up 14.0% to $0.343; YTD FFO per share up 2.4% ($ millions, except per share amounts) Q3 2019 Q3 2018 Variance YTD 2019 YTD 2018 Variance Net operating income $116.0 $116.1 ($0.1) $349.5 $344.3 $5.2 Interest and other income 10.4 7.6 2.8 28.0 22.2 5.8 Interest expense (45.3) (38.
Slide 13: Other Gains (Losses) and (Expenses) – FFO
Other Gains (Losses) and (Expenses) – FFO Q3 2019 Other Gain of $3.6 million ($ millions) Q3 2019 Q3 2018 Variance YTD 2019 YTD 2018 Variance Realized gain (loss) on marketable securities $− $0.1 ($0.1) $1.2 $4.2 ($3.0) Unrealized gain (loss) on marketable 0.2 0.1 0.1 0.3 0.3 − securities Net gain (
Slide 14: ACFO
ACFO YTD 2019 ACFO of $184 million ($ millions) Q3 2019 Q3 2018 Variance YTD 2019 YTD 2018 Variance Cash provided by operating activities $70.3 $72.0 ($1.7) $162.2 $168.9 ($6.7) Add (deduct): Working capital adjustments (0.7) 5.1 (5.8) 39.5 33.0 6.5 Adjustment for equity accounted joint ventures 0.8
Slide 15: 2019 Key Financing Activities
2019 Key Financing Activities Rates on new debt significantly lower than maturing debt Term at Effective Rate $ Millions Issuance YTD 2019 Activity: Unsecured Bank Term Loans – Fixed 3.3% 5.0 – 7.0 $550.0 Unsecured Bank Term Loans – Floating 2.9% 4.0 $300.0 Share Repurchase – ($741.6) New Mortgages
Slide 16: Financial Strength and Flexibility
Financial Strength and Flexibility Unencumbered asset pool at $7.1 billion Q3 2019 YE 2018 Unsecured revolving credit facilities $800M $800M 67% of total Unencumbered assets ($ billions) assets $7.1 $7.3 Unencumbered assets to unsecured debt 2.0x 2.5x Secured indebtedness to total assets 15.1% 14.0%
Slide 17: Well-Staggered Term Debt Maturities
Well-Staggered Term Debt Maturities (as at September 30, 2019) 7.0% Millions Unsecured Term Loans $900 Weighted Average Interest Rate 4.0% Term to Maturity 5.4 years Mortgages $800 94% of Term Debt is Fixed Rate 6.0% Senior Unsecured Debentures Weighted Average Effective Interest % $700 5.0% $600 4.
Slide 18: Kay Brekken
Kay Brekken Executive VP & CFO. ~ —- Contactinfo First Capital Realty Inc. ~ ‘Shops at King Liberty 85 Hanna Ave, Suite 400 Toronto, Ontario Tel 416.504.4114 Fax 416.941.1655 www.fer.ca TSX: FCR
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