Pro Real Estate Investment Trust · TSX:PRV.UN
Pro Real Estate Investment Trust — Proreit — Investor Presentation (November 2024)
39 slides from Pro Real Estate Investment Trust's investor presentation, November 2024
Slide 1: Built for Sustainable Growth and Performance
Built for Sustainable Growth and Performance INVESTOR PRESENTATION NOVEMBER 2024 PROREIT / TSX:PRV.UN INVESTOR PRESENTATION / NOVEMBER 2024 1
Slide 2: An Industrial-Focused, High-Quality Canadian REIT
An Industrial-Focused, High-Quality Canadian REIT (TSX:PRV.UN) 1400 Commerce Way Woodstock, Ontario As at September 30, 2024 $1.0B 6.1M 10.4M GLA by Asset Class GLA by Region Total Owned Gross Managed Gross Assets Leasable Area1 Leasable Area1 As at September 30, 20246 As at September 30, 20246 (sq.
Slide 3: Building on Solid Foundations
Building on Solid Foundations ∕ 158 acquisitions since inception Total Return to Unitholders ∕ $400M in new equity raised since inception 250.0% ∕ Distribution yield of 7.81%1 ∕ 3-year total return of 230.2%2 200.0% ∕ Monthly distributions since 2014 150.0% 100.0% 50.0% - PROREIT: S&P/TSX Composite
Slide 4: Becoming a Pure-Play Light Industrial REIT
Becoming a Pure-Play Light Industrial REIT Our Ambition To be a best-in-class pure-play Canadian light industrial REIT driven by sustainable growth and value creation. Medium-Term Targets1 (3-5 years) : $2B 90% 45% in Asset Value Industrial Adjusted Debt to Base Rent Gross Book Value2 1 Medium-term
Slide 5: Our Competitive Advantages
Our Competitive Advantages Strategic Positioning in the Light Industrial Sector 01 Clear Strategy for Growth and Value Creation 02 Commitment to Sustainable Development 03 Financial Discipline 04 Seasoned Leadership with Proven Track Record 05 PROREIT / TSX:PRV.UN INVESTOR PRESENTATION / NOVEMBER 20
Slide 6: Strategic Positioning in the Light Industrial Sector
Strategic Positioning in the Light Industrial Sector 01 PROREIT / TSX:PRV.UN INVESTOR INVESTOR PRESENTATION PRESENTATION // NOVEMBER 2024 6
Slide 7: Focused on the Light Industrial Sector
Focused on the Light Industrial Sector Why we like it ∕ Defensive asset class ∕ Solid and stable fundamentals – Lower market rent volatility – Lower operating costs – High-value, generic-use space that is highly marketable – Broad and diverse tenant base ∕ Lower capital expenditures, maintenance, le
Slide 8: Resiliency of the Light Industrial Sector in Canada
Resiliency of the Light Industrial Sector in Canada Small and mid-bay properties continue Industrial Vacancy Rates and Inventory Across Canadian Cities/Regions1 to perform better than large bay in Small-bay Vacancy Mid-bay Vacancy Overall Industrial Total Industrial Canada in City/Region (0K-50K) (5
Slide 9: Strategically Positioning Our Industrial Portfolio
Strategically Positioning Our Industrial Portfolio Property Focus Geographic Focus ∕ Light industrial sector: ∕ Attractive primary and secondary – Light manufacturing markets in Canada with robust economies – Distribution (mainly temperature-controlled, cold storage) ∕ Key markets with land supply c
Slide 10: Leading Landlord in the Halifax Industrial Market
Leading Landlord in the Halifax Industrial Market Halifax’s Burnside Industrial Park Overview Halifax’s Market Overview Burnside is the largest industrial park north of While investor demand for industrial properties Boston and east of Montreal, with almost 2,000 continues to exceed expectations, th
Slide 11: Leasing Highlights in Halifax Burnside Industrial Park
Leasing Highlights in Halifax Burnside Industrial Park We completed 91 renewal/backfill deals in Burnside Industrial Park in 2024, representing: 40.2% 5K sq. ft. Burnside tenants account for Average Tenant PROREIT’s total GLA expiring in 2024 Size $7.95/sq. ft. $14.53/sq. ft. WAVG Expiring 2024 WAVG
Slide 12: Successful Joint Operation with Institutional Investor
Successful Joint Operation with Institutional Investor Joint operation with Crestpoint Real Estate Investments Ltd. completed on August 4, 2022 to jointly own 42 properties. ∕ Two-portion transaction, immediately accretive 42 to earnings: Properties – PROREIT and Crestpoint each acquired a 50% inter
Slide 13: A Thriving Industrial Portfolio
A Thriving Industrial Portfolio 550 McAllister Drive Saint John, New Brunswick Fair Value of Industrial Industrial Investment Properties Net Operating Income (NOI) ($ Millions) ($ Millions) As at September 30, 2024 85 5.2M 97.1% $838.1 $41.5 Industrial Industrial $816.0 $805.2 $797.4 $39.6 Industria
Slide 14: Our Retail and Office Sectors
Our Retail and Office Sectors As at September 30, 2024 Retail Portfolio: Office Portfolio: ∕ High-quality community service centres ∕ Mainly suburban and mixed-use flex office buildings, outside large metropolitan areas ∕ 68.7% of base rent from national grocery stores, pharmacies, financial institu
Slide 15: A Fully Integrated Business Model Driving Synergies
A Fully Integrated Business Model Driving Synergies 3 Spectacle Lake Dr, Suite 290 Dartmouth, Nova Scotia Internalized wholly-owned property management division, Compass Commercial Realty, is a long- established group operating autonomously from Increasing Our Reach in the Halifax (headquarters) Pro
Slide 16: Our Diversified and Strong Tenant Base
Our Diversified and Strong Tenant Base Top 10 Tenants High-Quality Base Rent As at September 30, 2024 As at September 30, 2024 Base Rent Base Rent from from 66.3% National and 29.7% Top 10 Government Tenants Tenants In-place Base Rent from 36.0% Credit Quality Tenants PROREIT / TSX:PRV.UN INVESTOR P
Slide 17: A Resilient Portfolio in All Market Conditions
A Resilient Portfolio in All Market Conditions Occupancy Rate (Including Committed Space) Overall 98.0% 98.4% 99.2% 98.3% 97.7% 97.7% 97.2% 100% 90% 80% 70% 60% 50% 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 10 Morris Dr Dartmouth, Nova Scotia Industrial Retail Office PROREIT / TSX:PRV.UN INVESTOR
Slide 18: Clear Strategy for Growth and Value Creation
Clear Strategy for Growth and Value Creation 02 500 Palladium Drive Kanata, Ontario PROREIT / TSX:PRV.UN INVESTOR INVESTOR PRESENTATION PRESENTATION // NOVEMBER 2024 18
Slide 19: Our Strategy to Generate Value
Our Strategy to Generate Value Increase scale through organic Focus on light industrial properties Optimize balance sheet and and acquisitive growth in Canada capital allocation ∕ Build robust pipeline of ∕ Small and mid-bay size assets ∕ Recycle capital: sale of lower potential accretive acquisitio
Slide 20: Embedded Value in Our Portfolio
Embedded Value in Our Portfolio 123 Price St Moncton, New Brunswick 2024 Renewals 2025 Renewals Renewed as of September 30, 2024 Renewed as of September 30, 2024 (% GLA) (% GLA) 16.4% 27.3% 83.6% As at September 30, 2024 Weighted Avg Estimated Asset Fair Value In-Place Net Market Spread 72.7% Class
Slide 21: Industrial Leasing Highlights
Industrial Leasing Highlights As at September 30, 2024 171 John Savage, 70-104 Durand Road 222 Edinburgh Drive, Darmouth, NS Winnipeg, MB Moncton, NB +69% +42% +50% spread vs. spread vs. spread vs. prior year prior year prior year 21K sq. ft. 4K sq. ft. 27K sq. ft. Renewal Renewal Renewal 520 Beards
Slide 22: Well-staggered Lease Maturity Over Time
Well-staggered Lease Maturity Over Time Staggered Lease Maturities 2,500,000 37.1% 40.0% 15.2% 17.1% 15.5% 12.3% 2,035,080 20.0% 2,000,000 2.8% 0.0% 1,500,000 -20.0% 1,161,960 949,996 865,649 -40.0% 1,000,000 754,832 -60.0% 500,000 187,807 -80.0% 0 -100.0% 2024 2025 2026 2027 2028 2029-2038 Industri
Slide 23: Commitment to Sustainable Development
Commitment to Sustainable Development 03 1750 Jean-Berchmans-Michaud Street Drummondville, Quebec PROREIT / TSX:PRV.UN INVESTOR INVESTOR PRESENTATION PRESENTATION // NOVEMBER 2024 23
Slide 24: Our Sustainability Timeline
Our Sustainability Timeline 2019 2020 2021 2022 2023 2024 > Adopted Board > Supported tenants > Completed first > Published inaugural > Established ESG > Engaged with Diversity Policy, with by participating in materiality 2021 Sustainability taskforce at property third-party supplier certain amendme
Slide 25: Sustainability Highlights (From 2023 ESG Report)
Sustainability Highlights (From 2023 ESG Report) / Reduced CO2 emissions at one property by an Environmental 21% 49% 100% estimated 29% through converting oil to natural of portfolio is of properties are tracked of all new leases gas power BOMA-certified on ENERGY STAR® contain a sustainability / In
Slide 26: Financial Discipline
Financial Discipline 04 2945 André Avenue Dorval, Quebec PROREIT / TSX:PRV.UN INVESTOR INVESTOR PRESENTATION PRESENTATION // NOVEMBER 2024 26
Slide 27: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights (for the Three Month Period) 1.5% $26.6M NOI Growth1 Proceeds from Sale (despite owning 10 fewer of 2 Office Non-core properties) Properties 8.1% $5.0M Same Subsequent to Property Quarter-end, Proceeds NOI Growth1, 2, 3 from Sale of 1 Retail Non-core Properties 49.9% $32
Slide 28: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights Consistent Same Property NOI1 Growth 9.1% 7.8% 8.1% 7.5% 6.4%3 4.9% 2.1% 1.7%2 3.3% 1.3% 2.2% 1.9% 2.3% 0.8% 1.5% -5.1% Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Same Property NOI Growth (%) NOI Growth (%) 1 Same Property NOI is a non-IFRS financial measure. See Di
Slide 29: Actively Managed Capital Structure
Actively Managed Capital Structure Properties Mortgage Maturities by Years As at September 30, 2024 3.87% $220.0 Current Weighted 5.0% 4.8% 4.1% Average Mortgage 3.5% 3.4% 5.00% Interest Rate 2.4% $170.0 $123.9 0.00% 3.7 $120.0 Weighted Average $92.1 -5.00% Term to Maturity (in years) $71.5 $70.0 $4
Slide 30: Successful Execution of Capital Recycling Strategy in 2024
Successful Execution of Capital Recycling Strategy in 2024 Date closed City Quarter Number of Asset GLA Transaction Use of Proceeds Properties Class (in sq.ft) Price (in $M) Dispositions First Nine Months February 2 & 9, 2024 Montreal, QC Q1 2 Industrial 124,000 $20.7 $16.0M in related mortgages and
Slide 31: Our Track Record of Financial Discipline
Our Track Record of Financial Discipline Net operating income Fund from Operations (FFO) 1 Total Debt to Total Assets ($ Millions) ($ Millions) ($ Millions) $30.3 57.5% $57.7 $57.9 $26.3 $46.3 $21.9 $40.5 $20.9 52.8% 49.6% 49.8% 49.3% 49.9% 49.1% $14.8 $14.8 $14.3 $7.7 $7.4 $6.5 2020 2021 2022 2023
Slide 32: Seasoned Leadership with Proven Track Record
Seasoned Leadership with Proven Track Record 05 3200-3260 Guénette Street St-Laurent, Quebec PROREIT / TSX:PRV.UN INVESTOR INVESTOR PRESENTATION PRESENTATION // NOVEMBER 2024 32
Slide 33: Experienced and Aligned Management and Board
Experienced and Aligned Management and Board Senior Management Team Deep industry Board of Trustees knowledge and James W. Beckerleg expertise in real Trustee, Chair of the Board and Co-Founder estate, property Vincent Chiara management Independent Trustee Gordon G. Lawlor, CPA Alison J. Schafer, CP
Slide 34: History of Executing on Our Strategy
History of Executing on Our Strategy $6M Total Assets $635M Total Assets $1.0B Total Assets 2013 2017 2018 2019 2020 2021 2022 2023 2024 1 property 66 properties 84 properties 92 properties 91 properties 120 properties 130 properties 123 properties 116 properties PROREIT $69.1M in 7 properties 34 ac
Slide 35: Why Invest in PROREIT?
Why Invest in PROREIT? Industrial-focused portfolio in attractive cities Financial discipline across Canada ∕ Stable cashflows with ample liquidity (cash and undrawn portion ∕ Low-risk portfolio with fully-internalized asset and property of credit facility) management ∕ Ten years of asset growth whi
Slide 36: Disclaimer
Disclaimer About this Presentation This presentation is dated November 13, 2024 and is strictly intended to provide general information about PRO Real Estate Investment Trust (“PROREIT”) and its business. This presentation does not constitute an offer to sell or the solicitation of an offer to buy a
Slide 37: Appendix
Appendix 06 PROREIT / TSX:PRV.UN INVESTOR INVESTOR PRESENTATION PRESENTATION // NOVEMBER 2024 37
Slide 38: Building Sustainable Value
Building Sustainable Value Our Values Our Mission Integrity To invest in high-quality commercial Operating our business in a responsible and ethical real estate and manage properties manner to build trust with our stakeholders to high standards, while contributing to the local communities in which T
Slide 39: Successful Execution of Capital Recycling Strategy in 2023
Successful Execution of Capital Recycling Strategy in 2023 Dispositions in F2023 Date closed City Number of Asset GLA Transaction Use of Properties Class (in sq.ft) Price (in $M) Proceeds April 21, 2023 Amherst, NS 1 Office 50,000 $2.1 General business purposes $5.7M in related mortgages and August