Granite Real Estate Investment Trust · TSX:GRT.UN
Granite Real Estate Investment Trust — Investor Presentation (August 2024)
23 slides from Granite Real Estate Investment Trust's investor presentation, August 2024
Slide 1: Investor Presentation | August 2024
INVESTOR PRESENTATION | August 2020 INVESTOR PRESENTATION | August 2024
Slide 2: Presentation of Certain Information
PRESENTATION OF CERTAIN INFORMATION • Unless otherwise indicated in this presentation, all information is presented as of June 30, 2024 and all financial information that is identified as current refers to the period ending June 30, 2024. For definitions of certain non-IFRS performance measures and
Slide 3: Granite Highlights
GRANITE HIGHLIGHTS ORGANIZATIONAL PRINCIPLES PORTFOLIO OVERVIEW FINANCIAL PERFORMANCE • Long-term total return • 138 income-producing • 70% LTM AFFO POR1 focused properties + 5 • 32% net leverage ratio1 • Conservative and flexible development properties • Outlook of 6%-6.5% capital structure • 63.3M
Slide 4: ESG+R Objectives
ESG+R OBJECTIVES ENVIRONMENTAL SOCIAL GOVERNANCE • Promote energy efficiency and • Engage with our unitholders, • Disclose our ESG+R performance as a sustainable practices at both our employees, tenants, property commitment to transparency and properties and corporate offices managers and the local
Slide 5: ESG – GRESB 2023
ESG – GRESB 2023 Granite ranked 1st in the North America/Industrial/Listed/Tenant Controlled peer group Granite ranked 2nd in the United States of America/Industrial public disclosure group 5
Slide 6: ESG - Green Bonds (as at Dec 31, 2023)
ESG - GREEN BONDS (AS AT DEC 31, 20231) Green Bonds Issued to Date $1.4B 2027 Green Bond Allocation 100% Green Bond Spend to Date $1.2B 2028 Green Bond Allocation 100% Overall Allocation 83% 2029 Green Bond Allocation 42% Spend by Framework Category Spend by Location Spend by Green Building Certific
Slide 7: Granite's Evolution
GRANITE’S EVOLUTION Investment Property Summary Then - December 31, 2012 Now - June 30, 2024 0.6M SF Flex/Office2 48.8M SF 16.2M SF 11.8M SF $153M Distribution/E- Special Purpose Multi-Purpose2 commerce3 $970M $690M $6,468M 5.0M SF $1.7B Industrial/Warehouse2 $1,124M $9.0B Value Value 8.9M SF Specia
Slide 8: Portfolio Transformation Strategy
PORTFOLIO TRANSFORMATION STRATEGY TARGET MARKETS MODERN FACILITIES E-COMMERCE TRENDS • Superior economic • Meet the demands of • Invest opportunistically in conditions and market E-Commerce and evolving property types fundamentals traditional distribution and markets benefiting • Proximity to major
Slide 9: Financial Performance
FINANCIAL PERFORMANCE Historical Operating Performance ($M)2 Distributions and Payout Ratios1,2 91% 81% $541 80% $521 77% 77% 70% 75% 71% $456 79% 73% 78% 70% $414 64% 63% $394 $393 3.30 $352 $340 3.20 $299 287 $295 3.10 $274 $265 $264 $248 3.00 $235 $216 2.90 $204 $187 2.80 $173 2.72 $138 2018 2019
Slide 10: GRT Historical Performance
GRT HISTORICAL PERFORMANCE Total Return vs TSX Composite & TSX Capped REIT Indices Cumulative Total Return %1 350% 325% 300% 275% 250% 225% 200% 175% 150% 125% 100% 75% 50% 25% 0% Granite REIT TSX Capped REIT Index TSX Composite Index Granite has outperformed the TSX and Capped REIT Total Return ind
Slide 11: Globally Diversified Portfolio
GLOBALLY DIVERSIFIED PORTFOLIO 5 countries – 143 properties – 63.3 million square feet GERMANY 14 properties 4.7M SF CANADA 38 properties 6.9M SF NETHERLANDS 1 16 properties 2 5.4M SF 4 UNITED STATES 66 properties Special Purpose 38.8M SF Properties AUSTRIA 9 properties 7.5M SF Global footprint with
Slide 12: Portfolio Segmentation by Geography
PORTFOLIO SEGMENTATION BY GEOGRAPHY By Income Producing Property Fair Value By Annualized Revenue $820M 22% $1,988M $69.9M $78.4M 15% 17% 9% $769M $42.4M 9% 9% $614M $8.9B $37.0M 8% $464M 7% 53% $4,746M $236.3M 51% By Square Feet By Number of Income-Producing Properties 7.5M 12% 11% 25% 35 6.9M 9 7%
Slide 13: IPP Portfolio Segmentation by Category
IPP PORTFOLIO SEGMENTATION BY CATEGORY Distribution/E-commerce - Properties Industrial/Warehouse 96 Properties 32 Properties 48.8M SF (∼509K SF/property) 5.0M SF (∼155K SF/property) $6.5B Fair Value (∼$132/SF): 72% $1.1B Fair Value(∼$226/SF): 13% WALT: 5.6 years WALT: 3.9 years 72.0% $50.7M Annualiz
Slide 14: Development and Expansion Pipeline
DEVELOPMENT AND EXPANSION PIPELINE Ajax, Ontario ~50K SF Weert, Netherlands ~52K SF Active development program to enhance total return & platform value 14
Slide 15: Lease Expiration Profile
LEASE EXPIRATION PROFILE Outstanding Lease Expiries by Annualized Revenue Annualized Overall Revenue $464M WALT 5.9 Years Committed Occupancy1 94.5% Canada USA Germany Netherlands Austria 120 47.8% 100 Annualized Revenue (C$M) 80 60 13.7% 11.3% 40 9.1% 7.2% 1.9% 9.0% 20 0 2024 2025 2026 2027 2028 20
Slide 16: High Quality & Creditworthy Tenant Base
HIGH QUALITY & CREDITWORTHY TENANT BASE Annualized Credit Other Tenants Top 10 Tenants GLA % WALT Revenue % Rating1,2 Magna 26.7% 19.2% 6.9 A- Amazon 4.0% 3.9% 14.7 AA Mars Petcare US 2.7% 3.5% 6.1 NR True Value Company 2.1% 2.2% 16.7 NR ADESA 1.8% 0.3% 5.1 CCC+ Restoration Hardware 1.7% 1.9% 3.8 B1
Slide 17: Balance Sheet Strength
BALANCE SHEET STRENGTH1 Capitalization Debt Maturity Profile $600 8.00% Unit Price (08/02/2024) $73.34 Units Outstanding 62.7 7.00% $500 Market Capitalization1 $4,601 6.00% US$185M Term Loan due Dec/24 $253 5.02% 4.93% Weighted average interest rate $400 US$400M Term Loan due Sept/25 $548 5.00% Debt
Slide 18: Financial Flexibility & Target Long-Term Leverage Ratio
FINANCIAL FLEXIBILITY & TARGET LONG-TERM LEVERAGE RATIO1 • Strong balance sheet provides pathway for measured growth with potential for further diversification and optimization of the portfolio • Target long term net leverage ratio1 of ∼30 - 35% and net-debt-to-EBITDA of 6 - 7x while maintaining pat
Slide 19: Leadership Team
LEADERSHIP TEAM Kevan Gorrie Teresa Neto Lorne Kumer Michael A. Ramparas President and Chief Executive Officer Chief Financial Officer Executive Vice President, Executive Vice President, Global Head of Global Real Estate Real Estate & Head of Investments Witsard Schaper Lawrence Clarfield Jon Sorg S
Slide 20: Investor Relations Contact
INVESTOR RELATIONS CONTACT Andrea Sanelli Associate Director, Legal & Investor Services T: 647.925.7504 E: ir@granitereit.com 20
Slide 21: Appendix
APPENDIX The following non-IFRS performance measures and non-IFRS ratios are important measures used by management in evaluating the Trust’s underlying operating performance and debt management. These non-IFRS performance measures and non-IFRS ratios are not defined by IFRS and do not have standar
Slide 22: Appendix
APPENDIX Same property net operating income - cash basis Same property NOI - cash basis refers to the NOI - cash basis for those properties owned by Granite throughout the entire current and prior year periods under comparison. Same property NOI - cash basis excludes properties that were acquired, d
Slide 23: Appendix
APPENDIX B) NON-IFRS RATIOS FFO and AFFO payout ratios The FFO and AFFO payout ratios are calculated as monthly distributions, which exclude special distributions, declared to unitholders divided by FFO and AFFO (non-IFRS performance measures), respectively, in a period. FFO payout ratio and AFFO pa
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