Granite Real Estate Investment Trust · TSX:GRT.UN
Granite Real Estate Investment Trust — Investor Presentation (March 2021)
21 slides from Granite Real Estate Investment Trust's investor presentation, March 2021
Slide 1: Investor Presentation
INVESTOR PRESENTATION | August 2020 INVESTOR PRESENTATION | March 2021
Slide 2: Presentation of Certain Information
PRESENTATION OF CERTAIN INFORMATION • Unless otherwise indicated in this presentation, all information is presented as of December 31, 2020 and all financial information that is identified as current refers to the period ending December 31, 2020. For definitions of certain non-IFRS measures used in
Slide 3: Granite Highlights
GRANITE HIGHLIGHTS ORGANIZATIONAL PRINCIPLES PORTFOLIO OVERVIEW FINANCIAL PERFORMANCE Long-term total return focused 107 income-producing properties + 77% AFFO POR 7 development properties/land Conservative and flexible capital 25% net leverage ratio 49.4M square feet structure GRT.UN on TSX and GRP
Slide 4: Granite Highlights - ESG
GRANITE HIGHLIGHTS - ESG ENVIRONMENTAL SOCIAL GOVERNANCE Promote energy efficiency and sustainable practices at our Promote employee well-being 100% independent Board properties excluding CEO Reduce use of resources and promote waste diversion Promote volunteerism and Experienced and diverse board c
Slide 5: ESG - $500M Green Bond Use of Net Proceeds
ESG - $500M GREEN BOND USE OF NET PROCEEDS Property Eligible Green Certification Date Allocation 3501 North Lancaster Hutchins Rd, Lancaster, TX, USA LEED Silver Green Building Mar 1/19 $106.1 Oude Graaf 15, Weert, NED BREEAM “Excellent” Green Building May 1/20 31.9 1201 Allpoints Court, Plainfield,
Slide 6: Granite's Evolution
GRANITE’S EVOLUTION Investment Property Summary Then - December 31, 2011 Now - December 31, 2020 34.1M SF 13.8M SF Modern 14.1M SF Logistics/Distribution Multi-Purpose Special Purpose $3,827M $802M $1,089M 6.4M SF $1.9B Multi-Purpose $879M $5.8B Value Value 3 Properties Under Development and 4 Land
Slide 7: Portfolio Transformation Strategy
PORTFOLIO TRANSFORMATION STRATEGY Invest selectively/opportunistically in Target markets with superior Focus on modern facilities that meet evolving property types and markets economic conditions and market the demands of E-Commerce and benefiting from technological fundamentals traditional distribu
Slide 8: Financial Performance
FINANCIAL PERFORMANCE Historical Operating Performance ($M) Distributions and Payout Ratios 91% $340 82% 81% 77% 71% $274 $265 79% 73% 78% 3.00 $248 78% $245 71% 2.90 $223 2.80 $216 69% 68% 68% $214 $216 2.72 $203 $204 2.60 $188 $185 $187 $183 $181 $170 $173 2.43 $158 $162 $154 2.30 $143 $145 2.21 $
Slide 9: GRT Historical Performance
GRT HISTORICAL PERFORMANCE Total Return vs TSX Composite & TSX Capped REIT Indices Cumulative Total Return % Annualized Total Return % COVID-19 23% Total 30% Return in 2020 295% 25% 270% 245% 20% 220% 15% 195% 10% 170% 145% 5% 120% 0% 95% -5% 70% 45% -10% 20% -15% -5% -20% 1Yr 2Yr 3Yr 5Yr Granite RE
Slide 10: Globally Diversified Portfolio
GLOBALLY DIVERSIFIED PORTFOLIO 7 countries – 114 properties – 49.4 million square feet POLAND 2 properties GERMANY 0.3M SF 11 properties 3.5M SF CANADA 30 properties NETHERLANDS 5.9M SF 12 properties 3.8M SF UNITED STATES 47 properties 27.5M SF CZECH REPUBLIC AUSTRIA 1 property 11 properties 0.3M SF
Slide 11: Portfolio Segmentation by Geography
PORTFOLIO SEGMENTATION BY GEOGRAPHY By Income Producing Property Fair Value By Annualized Revenue $57.3M $52.3M $1,015M 17% 16% 18% 19% $1,107M $821M 14% $5.8B $66M 20% $329.2M $2,833M $153.6M 47% 49% By Square Feet By Number of Income-Producing Properties 7.9 12% 5.9 16% 24 30 22% 28% 16% 49.4M 11
Slide 12: Portfolio Segmentation by Category
PORTFOLIO SEGMENTATION BY CATEGORY Income-Producing Properties by Value Segmented by Category Multi-Purpose Properties 33 Properties 6.4 M SF (∼194K SF/property) $0.9 B Fair Value (∼$138/SF) WALT: 4.9 years $52M Annualized Revenue (∼$8.14/SF): 16% Modern Logistics Properties 15% 67 Properties Magna
Slide 13: Development and Expansion Pipeline
DEVELOPMENT AND EXPANSION PIPELINE Altbach, Germany Fort Worth, Texas Mississauga, Ontario (expansion) Houston, Texas Incorporate development into our growth plans to enhance total return & platform value March 2021 13
Slide 14: Lease Expiration Profile
LEASE EXPIRATION PROFILE Outstanding Lease Expiries by Annualized Revenue Annualized Overall Revenue $329.2M WALT 6.3 Years Occupancy 99.6% 90 41.5% 80 Canada USA Austria Europe Annualized Revenue (C$M) 70 60 50 18.8% 40 10.8% 12.9% 30 7.4% 7.4% 20 1.1% 10 0 2021 2022 2023 2024 2025 2026 2027+ % of
Slide 15: High Quality & Creditworthy Tenant Base
HIGH QUALITY & CREDITWORTHY TENANT BASE Other Tenants Annualized Credit Top 10 Tenants GLA % WALT Revenue % Rating Magna 36% 27% 4.6 A (low) Amazon 6% 5% 18.2 AA (low) ADESA 2% —% 8.6 NR Restoration Hardware 2% 2% 7.3 NR Hanon Systems 2% 1% 8.7 BBB Spreetail FTP 2% 2% 5.8 NR Ingram Micro 2% 2% 4.0 B
Slide 16: Balance Sheet Strength
BALANCE SHEET STRENGTH Capitalization Debt Maturity Profile Unit Price (03/01/2021) $73.24 $600 Units Outstanding 61.7 499 500 500 Market Capitalization $4,518 $500 400 $400 Credit Facility $0 300 (C$M) Debentures 3.873% due Nov/23 $400 $300 236 Debentures 3.062% due Jun/27 $500 $200 Term Loan 0.522
Slide 17: Credit Metrics Summary
CREDIT METRICS SUMMARY • The following table was sourced from DBRS’ Canadian Real Estate Peer Comparison dated January 2021. DBRS Canadian Real Estate Peer Comparison1: Peer Group Granite Rank Granite Average Among Peer Group Total Debt to Capital Total 27.4% 48.5% #1 Debt to EBITDA Cash 5.6x 9.3x #
Slide 18: Financial Flexibility & Target Long-Term Leverage Ratio
FINANCIAL FLEXIBILITY & TARGET LONG-TERM LEVERAGE RATIO • Strong balance sheet provides pathway for measured growth with potential for further diversification and optimization of the portfolio • Target long term net leverage ratio of ∼30 - 35% while maintaining patient and opportunistic approach to
Slide 19: Canadian Real Estate Debt Comparison
CANADIAN REAL ESTATE DEBT COMPARISON1 Total Debt-to-Capital Total Debt-to-EBITDA 80% 18.0x 16.0x 70% 14.0x 60% 12.0x 50% 10.0x 40% 8.0x 6.0x 30% 4.0x 20% 2.0x 10% 0.0x Granite has the lowest leverage within DBRS1 universe of Canadian Real Estate entities 1 Source: DBRS Canadian Real Estate Peer Comp
Slide 20: Canadian Real Estate Debt Comparison
CANADIAN REAL ESTATE DEBT COMPARISON1 EBITDA Interest Coverage Distributions/Cash Flow from Operations2 8.0x 1.20 7.0x 1.00 6.0x 0.80 5.0x 4.0x 0.60 3.0x 0.40 2.0x 0.20 1.0x 0.0x 0.00 Granite has leading cash flow coverage metrics among DBRS1 universe of Canadian Real Estate entities 1 Source: DBRS
Slide 21: Leadership Team
LEADERSHIP TEAM Kevan Gorrie Teresa Neto • President and Chief Executive Officer • Chief Financial Officer • Over 20 years of real estate experience in Canada, • Over 30 years of varied business experience, the United States and Germany. including ∼10 years as a CFO for publicly-traded • Previously
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