Granite Real Estate Investment Trust · TSX:GRT.UN
Granite Real Estate Investment Trust — Investor Presentation (November 2024)
23 slides from Granite Real Estate Investment Trust's investor presentation, November 2024
Slide 1: Investor Presentation
INVESTOR PRESENTATION | August 2020 INVESTOR PRESENTATION | November 2024
Slide 2: Presentation of Certain Information
PRESENTATION OF CERTAIN INFORMATION • Unless otherwise indicated in this presentation, all information is presented as of September 30, 2024 and all financial information that is identified as current refers to the period ending September 30, 2024. For definitions of certain non- IFRS performance me
Slide 3: Granite Highlights
GRANITE HIGHLIGHTS1 ORGANIZATIONAL PRINCIPLES PORTFOLIO OVERVIEW FINANCIAL PERFORMANCE • Long-term total return • 138 income-producing • 69% LTM AFFO POR1 focused properties + 5 • 32% net leverage ratio1 • Conservative and flexible development properties • Outlook of 6.0% constant capital structure
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 2023/2024
ESG – GRESB 2023/2024 GRESB 2024 - Granite ranked 1st in the Northern America/Industrial/Listed/Tenant Controlled peer group GRESB 2023 Public Disclosure Report1 - Granite ranked 2nd in the United States of America/Industrial sector 1 GRESB 2024 Public Disclosure Report scores and rankings will be r
Slide 6: ESG - Green Bonds
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 EVOLUTION5 Investment Property Summary Then - December 31, 2012 Now - September 30, 2024 0.6M SF Flex/Office2 48.9M SF 16.2M SF 11.8M SF $153M Distribution/E- Special Purpose Multi-Purpose2 commerce3 $970M $690M $6,492M 4.9M SF $1.7B Industrial/Warehouse2 $1,134M $9.1B Value Value 8.9M SF
Slide 8: Portfolio Transformation Strategy
PORTFOLIO TRANSFORMATION STRATEGY TARGET MARKETS MODERN FACILITIES E-COMMERCE TRENDS • Superior economic • Meet the demands of • Invest opportunistically in conditions and market E-Commerce and evolving property types fundamentals traditional distribution and markets benefiting • Proximity to major
Slide 9: Financial Performance
FINANCIAL PERFORMANCE Historical Operating Performance ($M)2 Distributions and Payout Ratios1,2 91% $551 81% $521 80% 77% $456 77% 71% 69% 75% 79% 73% 70% $419 78% $394 $393 64% 62% 3.40 $352 3.30 $340 3.20 $299 $302 287 3.10 $274 $264 $265 $248 3.00 $235 $216 2.90 $204 $187 $173 2.80 2.72 $138 2018
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 $844M 23% $2,027M $72.5M 16% $81.6M 17% 9% $790M $43.4M 9% 9% $9.0B $472M $631M 7% $38.0M 8% $4,704M $236.5M 52% 50% By Square Feet By Number of Income-Producing Properties 7.5M 11% 25% 12% 6.9M 9 35 7%
Slide 13: IPP Portfolio Segmentation by Category
IPP PORTFOLIO SEGMENTATION BY CATEGORY Distribution/E-commerce Properties Industrial/Warehouse 96 Properties 32 Properties 48.9M SF (∼509K SF/property) 5.0M SF (∼156K SF/property) $6.5B Fair Value (∼$133/SF): 72% $1.1B Fair Value(∼$228/SF): 13% 72% WALT: 3.8 years WALT: 5.7 years $319.6M Annualized
Slide 14: Lease Expiration Profile
LEASE EXPIRATION PROFILE Outstanding Lease Expiries by Annualized Revenue Annualized Overall Revenue $472M WALT 5.9 Years Committed Occupancy1 94.7% Canada USA Germany Netherlands Austria 120 49.9% 100 Annualized Revenue (C$M) 80 60 14.4% 12.9% 40 8.8% 3.8% 0.7% 9.5% 20 0 2024 2025 2026 2027 2028 20
Slide 15: High Quality & Creditworthy Tenant Base
HIGH QUALITY & CREDITWORTHY TENANT BASE Annualized Credit Other Tenants Top 10 Tenants GLA % WALT Revenue % Rating1,2 Magna 27.4% 19.2% 6.7 A- Amazon 4.0% 3.9% 14.4 AA Mars Petcare US 2.6% 3.5% 5.8 NR True Value Company 2.1% 2.2% 16.4 NR ADESA 1.8% 0.3% 4.8 B- Light Mobility Solutions GmbH 1.6% 1.3%
Slide 16: Balance Sheet Strength
BALANCE SHEET STRENGTH1 Capitalization Debt Maturity Profile Unit Price (11/01/2024) $74.54 $700 8.00% Units Outstanding 62.7 7.00% $600 Market Capitalization2 $4,677 6.00% US$185M Term Loan due Dec/24 $0 $500 Weighted average interest rate €70M Term Loan due Sep/26 $105 4.38% 4.35% 5.00% $400 Debt
Slide 17: 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 18: 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 19: Investor Relations Contact
INVESTOR RELATIONS CONTACT Andrea Sanelli Associate Director, Legal & Investor Services T: 647.925.7504 E: ir@granitereit.com 19
Slide 20: 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 21: 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 22: Appendix: Non-IFRS Ratios
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
Slide 23: Appendix: Subsequent Events
APPENDIX C) SUBSEQUENT EVENTS Stapled Unit Structure On October 1, 2024, Granite completed the uncoupling of its stapled unit structure by replacing it with a conventional REIT trust unit structure (the “Arrangement”). As a result of and immediately following the Arrangement, each Granite unitholder
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