European Residential Real Estate Invt Tr
European Residential Real Estate Invt Tr — European Residential Real Estate Investment Trust — Q2 2023 Earnings Presentation
18 slides from European Residential Real Estate Invt Tr's earnings presentation, Aug 3, 2023
Slide 1: Canada's only European-focused multi-residential REIT
Canada’s only European-focused multi-residential REIT Second Quarter 2023 Conference Call 1 | FOURTH QUARTER CONFERENCE CALL
Slide 2: 2 | SECOND QUARTER CONFERENCE CALL
2 | SECOND QUARTER CONFERENCE CALL
Slide 3: Disclaimer
Disclaimer Certain statements contained in this presentation constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to European Residential Real Estate Investment Trust (“ERES”) or Canadian Apartment Properties Real Estate Investment Trus
Slide 4: Presenters
Presenters • President, CEO and Trustee at CAPREIT Mark Kenney • CAPREIT since 1998 CEO and Trustee • Director on Board of REALPAC • Former Board member & Chair of the Fed. of Rental Housing Providers of Ontario • Former founding Board member of the Greater Toronto Apartment Association • Vice Presi
Slide 5: Strong Operational Performance
The long-term housing shortage has resulted in strong Strong Operational Performance demand driving consistent rent increases, even within the continuously changing regulatory framework. 98.6% €1,000 €950 €900 €850 €800 Q3 '19 Q4 '19 Q1' 20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2
Slide 6: Second Quarter Update
Second Quarter Update Business Update • On June 26, 2023, the REIT secured mortgage financing on its May 2, 2022 acquisition property, combined with refinancing of certain existing properties, in the total principal amount of €76.5 million (excluding transaction costs and fees). The new mortgage fin
Slide 7: Financial Performance
Financial Performance Jenny Chou Chief Financial Officer
Slide 8: Second Quarter Financial Results
Second Quarter Financial Results Same Property Same Property Same Property Occupancy AMR Growth NOI 98.6% +6.0% +7.6% Same Property FFO per Unit AFFO Payout NOI Margin (diluted) Ratio 79.5% -4.7% 79.2% 8 | SECOND QUARTER CONFERENCE CALL
Slide 9: Six Months 2023 Financial Results
Six Months 2023 Financial Results Six Months Ended June 30, 2023 2022 %∆ Operating Revenues (000s) €46,753 €43,490 8% Net Operating Income (NOI) (000s) €36,379 €33,521 9% Net Operating Income Margin1,2 77.8% 77.1% 0.7% Funds From Operations (FFO) €18,896 €19,655 4% FFO per Unit (Diluted) €0.081 €0.0
Slide 10: Robust Liquidity and Financing Structure
ERES monitors and maintains leverage and coverage ratios at Robust Liquidity and Financing Structure sustainable levels that comply with all covenants. 60% 56% 54% 51% 49% 49% 49% 49% 48% €255 €196 €177 €190 €165 €160 €156 €133 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Available Liquid
Slide 11: Staggered Mortgage Renewal Profile
Weighted Staggered Mortgage Renewal Profile Average Mortgage Term of 3.4 Years 400.0 4.75% 2.07% 3.29% Mortgage Renewal (€) 300.0 1.87% 1.39% 1.47% 1.38% 200.0 227.0 100.0 187.8 200.9 118.0 79.1 76.5 0.0 2024 2025 2026 2027 2028 2029 Mortgage Maturity Weighted Average Effective Interest Rate on Matu
Slide 12: Closing Remarks
Closing Remarks Mark Kenney Chief Executive Officer 12 | SECOND QUARTER CONFERENCE CALL
Slide 13: Housing Crisis in the Netherlands
Housing Crisis in the Netherlands Housing shortage estimated to increase to 400,000 homes in 2025, while the number of building permits issued is forecast to decrease. 80,000 400,000 400,000 60,000 350,000 Housing Shortage Building Permits 40,000 300,000 275,000 20,000 250,000 0 200,000 2018 2019 20
Slide 14: Rent Strategy: Robust Growth
In a fluid regulatory environment, Rent Strategy: Robust Growth ERES has multiple levers to drive rental growth. RENEWALS (85-90%) Regulated Unit increases capped by: - Income level - Points system 2% to 3% Liberalized Unit increases currently1 capped at wage inflation + 1% TURNOVER (15-20%) 3% to 4
Slide 15: Diversified and High Quality Multi-Residential Portfolio
Diversified and High Quality Multi-Residential Portfolio Regulated vs. Randstad vs. Multi-Family vs. Majority vs. Minority Liberalized Units1 Non-Randstad2 Single-Family2 Ownership1 13% 34% 31% 13% 51% 51% 49% 66% 74% 69% Regulated Units Randstad Single-Family Homes Units in properties 0% - 49% owne
Slide 16: Maximizing Value for Unitholders
Maximizing Value for Unitholders Value Maximization Rent Maximization Turnover Indexation Conversion Suite Suite Reletting Privatization 16 | SECOND QUARTER CONFERENCE CALL
Slide 17: Investment Highlights
Investment 1. Opportunity to invest in unique Canadian-listed European multi-residential Highlights REIT with initial focus on the attractive Netherlands market 2. Strong sponsorship by CAPREIT, Canada’s largest and best-in-class residential landlord 3. Established platform and high-quality portfoli
Slide 18: Contact Us
CONTACT US European Residential REIT m.kenney@capreit.net 11 Church Street, Suite 401 j.chou@capreit.net Toronto, Ontario M5E 1W1 www.eresreit.com Canada 18 | FOURTH QUARTER CONFERENCE CALL
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