D/b/a Centerspace · NYSE:CSR
D/b/a Centerspace — Investors Real Estate Trust — REITweek 2019 Investor Conference
19 slides from D/b/a Centerspace's conference presentation, Jun 3, 2019
Slide 1: REITweek 2019: Conference Presentation
REITWEEK 2019: CONFERENCE PRESENTATION NEW YORK HILTON MIDTOWN I NYC I JUNE 4-6, 2019
Slide 2: Safe Harbor Statement and Legal Disclosure
SAFE HARBOR STATEMENT AND LEGAL DISCLOSURE Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual resu
Slide 3: Why IRET?
WHY IRET? Internal Growth Enhanced operating platform opportunities to spur Opportunity organic growth with minimal capital requirement Increased Strong balance sheet with sufficient liquidity to Flexibility capitalize on future opportunities Differentiated Increased exposure to target markets in Mi
Slide 4: Company Snapshot
COMPANY SNAPSHOT . Founded in 1970 % of Proforma Average . Apartment owner/operator with 13,975 homes in differentiated markets Region 2019 NOI Homes Revenue . Publicly traded since 1997 Minneapolis, MN 22.5% 2,259 $1,553 . Net Asset Value (NAV) - $71 per Share(2) Rochester, MN 14.3% 1,711 $1,257 De
Slide 5: Operational and Margin-Enhancing Initiatives
OPERATIONAL AND MARGIN-ENHANCING INITIATIVES Focusing efforts to harvest organic growth from operational enhancements and margin-enhancing initiatives 60% 59% 61% Improvement in financial performance to be generated from 58% 62% process improvements, revenue generating ideas, human 57% 63% 5% capita
Slide 6: Driving Internal Growth
DRIVING INTERNAL GROWTH Our plan is producing consistent growth that has outpaced peers YoY Same-Store NOI Growth 10.0% 8.7% 9.0% 8.0% 6.4% 7.0% 5.8% 6.0% 4.7% 4.6% 5.0% 4.0% 2.8% 3.0% 2.0% 1.0% 0.0% 3Q FY18 4Q FY18 1Q FY19 2Q FY19 4Q CY18 1Q CY19 IRET MF Average Peer Average Growth rate comparisons
Slide 7: Growing Rental Revenue: Current Outlook
GROWING RENTAL REVENUE: CURRENT OUTLOOK Strong same-store performance has continued into this quarter. Non same-store is stabilized and performing Same-Store Lease Over Lease Pricing (2,819 Leases) Same-Store Physical Occupancy 98.0% 8.0% 6.5% 6.0% 5.3% 96.0% 4.3% 4.3% 4.4% 4.4% 4.0% 94.0% 2.0% 92.0
Slide 8: Peer Comparison
PEER COMPARISON We continue to view share repurchases as an attractive use of capital First Quarter 2019 Peer Same-Store1 Avg. AIV CPT IRT NXRT MAA No. of SS Units 12,848 38,349 28,039 42,618 13,697 11,471 95,920 Revenue Growth 4.1% 3.8% 4.2% 3.7% 4.0% 4.7% 2.3% Expense Growth 3.6% 2.2% 0.8% 3.8% 2.
Slide 9: Capital Structure as of March 31, 2019
CAPITAL STRUCTURE AS OF MARCH 31, 2019 A strong and flexible balance sheet allows us to execute our investment and operational strategies $ in thousands, except where noted $1.6B Total Capitalization % of Weighted Weighted Debt Summary Amount Total Avg. Rate Avg. Maturity $115M Series D Preferred Pr
Slide 10: Capital Recycling
CAPITAL RECYCLING Significantly improved the quality of our portfolio since April 30, 2017 Over the past 2 years, our capital recycling program has We focus our energy and capital on enhanced our multifamily portfolio by improving: improving 3 Long-Term Metrics . The quality of our portfolio as evid
Slide 11: Value-Add Opportunity
VALUE-ADD OPPORTUNITY Highlights . We are moving forward to deliberately mine the opportunities in our portfolio. Currently, we have approved $33 million of value-add projects in 25% of the homes in our portfolio Project Status . Expected investment in 2019 is $5.7 million and is expected to be neut
Slide 12: Acquisition Case Study – SouthFork
ACQUISITION CASE STUDY – SOUTHFORK Opportunity . SouthFork Townhomes is a 272-unit community built in 1988 & 1990 and purchased by IRET from the original developers in February 2019 . The developers would have incurred a significant tax bill in a cash sale . IRET was able to work with the seller to
Slide 13: Markets Update
MARKETS UPDATE Minneapolis – St. Paul and Denver boast extremely tight job markets, characterized by a highly educated workforce % of Adult Population with Bachelor's Degree or Higher Unemployment Rate (1) Washington-Arlington-Alexandria, DC-VA-MD-WV 50.8% 2.8% 2.7% 2.7% 2.6% San Francisco-Oakland-H
Slide 14: Minneapolis–St. Paul Is Strong
MINNEAPOLIS–ST. PAUL IS STRONG Economic Drivers 19 Fortune 500 Companies • The Minneapolis–St. Paul economy is supported by large Rank Company Rank Company corporations in diverse industries that generate stable job 5 United Health Group 216 Land O' Lakes growth. Nineteen Fortune 500 companies and e
Slide 15: Denver's Economy Is Thriving
DENVER’S ECONOMY IS THRIVING Economic Drivers 130 Total Nonfarm Payrolls (SA 2010-present) Indexed to Jan 2010 = 100 +28% • Denver’s advantageous location, livability, skilled workforce, 125 and attractiveness for doing business have prompted job creation throughout the metro area as employers reloc
Slide 16: Understanding Our Secondary Markets
UNDERSTANDING OUR SECONDARY MARKETS These five markets, plus Minneapolis-St. Paul and Denver are expected to make up 77% of proforma 2019 NOI Rochester, MN Omaha, NE Grand Forks, ND St. Cloud, MN Bismarck, ND Population 218,280 933,316 102,414 197,759 132,142 Median Household Income $71,985 $65,619
Slide 17: Best in Class Governance
BEST IN CLASS GOVERNANCE Executive Management Team Mark O. Decker, Jr. John A. Kirchmann Anne M. Olson PRESIDENT AND CEO EVP AND CFO EVP AND COO • Former investment banker with 18 • Former Private Consultant • Former Partner – Dorsey & Whitney years focused on small/mid cap REITs • Former VP of Oper
Slide 18: Investment Highlights
INVESTMENT HIGHLIGHTS Internal Growth Opportunities Flexible Balance Sheet Differentiated Market Exposure Value Add Opportunities Best in Class Governance 18 www.iretapartments.com REITweek: 2019 Investor Conference
Slide 19: Investor Relations Contact
Investor Relations Contact: Jonathan Bishop ir@iret.com 952.401.4827
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