Northview Residential REIT · TSX:NRR.UN
Northview Residential REIT — Northview Canadian High Yield Residential Fund — IPO Roadshow (September 2020)
33 slides from Northview Residential REIT's IPO roadshow presentation, Sep 30, 2020
Slide 1: Northview Canadian High Yield Residential Fund Investor Presentation
Northview Canadian High Yield Residential Fund Investor Presentation September 2020 A final prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces and territories of Canada.
Slide 2: Disclaimer
Disclaimer The presented materials and accompanying oral presentation include statements with respect to Northview Canadian High Yield Residential Fund (the “Fund”), including its business operations and strategy, and financial performance and condition, which may constitute forward-looking informat
Slide 3: Disclaimer (Continued)
Disclaimer (Continued) Terms not defined herein have the meanings ascribed to them in the prospectus. An investor should rely only on the information contained in the Fund’s final prospectus. This presentation is qualified in its entirety by reference to, and must be read in conjunction with, the de
Slide 4: Table of Contents
Table of Contents 1. Executive Summary ....................................................... 5 2. Investment Highlights ................................................... 6 3. Canadian Multi-Residential Sector ..…………………………….. 7 4. Portfolio Overview ...............................................
Slide 5: Executive Summary
Executive Summary Northview Canadian High Yield Residential Fund • Northview Canadian High Yield Residential Fund (the “Fund”) provides investors with the opportunity to invest alongside Starlight Group (“Starlight”), KingSett Group, AIMCo Realty, and Timbercreek Acquisitions Inc. in a geographicall
Slide 6: Investment Highlights
Investment Highlights • The Fund provides investors with exposure to the Canadian multi-residential sector, which, the Manager believes exhibits compelling Canadian Multi- investment characteristics, the ability to generate consistent cash flows, and a defensive positioning against economic cycle do
Slide 7: Canadian Multi-Residential Sector
Canadian Multi-Residential Sector Multi-Residential Sector vs. Other Asset Classes • The Canadian real estate sector experienced, until recently, an unprecedented decade of demand and returns since the global financial crisis in 2008 • Comparatively, the Canadian multi-residential sector has histori
Slide 8: Portfolio Overview
Portfolio Overview Anchored by properties with government and credit-rated corporations and low turnover in stable economies, the Fund provides consistent cash returns in several diversified geographies, from a portfolio of 378 properties Northwest Territories Total – Initial Portfolio Total Multi-R
Slide 9: Market Overviews
Market Overviews The Initial Portfolio is located in geographically and economically diversified Secondary Markets with stable, high-yielding market fundamentals • The Manager believes the markets in which the Initial Portfolio is situated allows for the mitigation of negative shocks and cyclicality
Slide 10: Initial Portfolio
Initial Portfolio Aurora Heights, Yellowknife Centurion Estates, Fort St. John Walker Place, Lethbridge Homeport Hotel, St. John’s 10
Slide 11: Major Tenants Profile
Major Tenants Profile The Initial Portfolio is anchored by a tenant base that is comprised of government tenants and credit-rated corporations with strong rental covenants • Approximately 66% of the rental revenue from Nunavut and the Northwest Territories is derived from leases to, or leases guaran
Slide 12: Barriers to Entry
Barriers to Entry Barriers to Entry Building 4104, Iqaluit • Management believes the Initial Portfolio is being purchased at below replacement cost • New competition or over-building in the Secondary Markets is limited due to the focus by most developers on major metropolitan markets and high barrie
Slide 13: Attractive Yield Supported by CMHC Financing
Attractive Yield Supported by CMHC Financing Attractive Capitalization Rates Higher Yield at Attractive Capitalization Rates • Highly attractive capitalization rates (approximately 7.88%1 in 2019) in the Secondary Markets are 10.5% exhibited by the Initial Portfolio compared to historically lower ca
Slide 14: Capitalization & Appraised Value
Capitalization & Appraised Value Pro Forma Capitalization & Independent Appraisal of the Initial Portfolio • Giving effect to the Maximum Offering of $430 million and the acquisition of the Initial Portfolio, the pro forma capitalization of the Fund is approximately $1.734 billion, comprising of $43
Slide 15: Operating Performance
Operating Performance Operating Performance of the Initial Portfolio • The following charts illustrate a year-over-year comparison of the operating metrics of the Initial Portfolio by region for the years ended December 31, 2019 and December 31, 2018 • In 2019, the Initial Portfolio experienced AMR
Slide 16: Key Fund Strategies
Key Fund Strategies Internal Property • Strong internal property management with local market knowledge while benefiting from Starlight’s asset management platform, which will provide the services of CEO and CFO to the Fund Management & External • Retain resident and senior property management perso
Slide 17: Strong Governance
Strong Governance The Fund has five permanent Trustees, four of whom are acting independently of the Fund • Starlight will provide the Fund the services of the Chief Executive Officer and the Chief Financial Officer ‒ Daniel Drimmer acts as the interim Chief Executive Officer and Martin Liddell acts
Slide 18: Key Fund Terms
Northview Canadian High Yield Residential Fund Key Fund Terms • The Fund’s investment objectives are to: a) Indirectly acquire, own and operate a high quality, geographically diversified real estate portfolio exhibiting attractive capitalization rates and a significant component of government and cr
Slide 19: Key Fund Terms (Continued)
Northview Canadian High Yield Residential Fund Key Fund Terms (Continued) • Asset Management Fee ‒ Equal to 0.35% of Gross Asset Value per annum, calculated and payable on a monthly basis Fees & Expenses • Property Management Fee ‒ The Fund intends to manage the ongoing day-to-day management of the
Slide 20: Starlight Overview
Starlight Overview Leading Private North American Real Estate Investor Operational Experience Over 25 years of North American multi-residential and $14.0B Active approach to asset management with extensive network of brokers and property managers commercial investment and asset management experience
Slide 21: Starlight Executive Leadership
Starlight Executive Leadership • Daniel Drimmer is the founder, President and Chief Executive Officer of Starlight Group, a Canadian real estate asset management company focused on the acquisition, ownership and management of residential and commercial properties across Canada and the U.S., with a p
Slide 22: Starlight Executive Leadership
Starlight Executive Leadership • Glen Hirsh joined Starlight in October of 2017 as Chief Operating Officer. Prior to joining Starlight, Mr. Hirsh most recently held the position of Vice President in the Strategy and Finance Group at Oxford Properties and previously was a Managing Director and Head o
Slide 23: Case Study: Starlight U.S. Multi-Family (No. 5) Core Fund
Case Study Starlight U.S. Multi-Family (No. 5) Core Fund In accordance with Section 13.7(4)(b) of National Instrument 41‐101 - General Prospectus Requirements, all the information relating to the Fund’s comparables and any disclosure relating to the comparables, which is contained in the presentatio
Slide 24: Case Study: Starlight U.S. Multi-Family (No. 1) Value-Add Fund
Case Study Starlight U.S. Multi-Family (No. 1) Value-Add Fund In accordance with Section 13.7(4)(b) of National Instrument 41‐101 - General Prospectus Requirements, all the information relating to the Fund’s comparables and any disclosure relating to the comparables, which is contained in the presen
Slide 25: Appendix
Appendix The Initial Portfolio will comprise a geographically diverse portfolio of 378 properties located across six Canadian provinces and two territories Inuvik Northwest Territories Nunavut Iqaluit Yellowknife Fort Nelson Fort St. John Taylor Dawson Creek Fort McMurray Grande Prairie Prince Georg
Slide 26: Overview of Territories
Overview of Territories General Overview & Real Estate Market The economy in Nunavut and the Northwest Territories is multi-faceted, Nunavut driven by oil and gas exploration and production, diamond and gold mining, government administration, transportation and tourism • The Northwest Territories is
Slide 27: Overview of British Columbia
Overview of British Columbia General Overview & Real Estate Market Northern British Columbia’s economic base predominantly comprises British Columbia the forestry, mining, oil and gas, energy, agriculture and tourism industries • Northern British Columbia’s economy has a predominant focus on the ene
Slide 28: Overview of New Brunswick
Overview of New Brunswick General Overview & Real Estate Market New Brunswick’s economy is closely tied to its exports with trade to the U.S. accounting New Brunswick for over 80% of the province’s export market • The province’s primary sectors of production are agriculture, aquaculture, forestry, m
Slide 29: Overview of Newfoundland and Labrador
Overview of Newfoundland and Labrador General Overview & Real Estate Market Newfoundland and Labrador’s economy predominantly comprises Newfoundland and Labrador metals and mining, manufacturing, aquaculture, agriculture, forestry, oil and gas and technology • The mining sector includes the holdings
Slide 30: Overview of Québec
Overview of Québec General Overview & Real Estate Market Sept-Îles is a city in the Cote-Nord region of eastern Québec located on the north shore of Québec the Saint Lawrence River, with a population of approximately 25,000 • The city’s economy is dependent on several mine operations in the region,
Slide 31: Overview of Saskatchewan
Overview of Saskatchewan General Overview & Real Estate Market Regina’s economy has historically been led by its steel and manufacturing industry Saskatchewan • Other industries of significance have included information technology, energy, finance and insurance, agribusiness and agriculture Rental d
Slide 32: Overview of Alberta
Overview of Alberta General Overview & Real Estate Market Northern Alberta’s economy is predominantly fueled by its oil industry, Alberta and in particular the natural gas and pipeline sectors • The extraction of these resources and subsequent construction of the area’s complex network of oil and na
Slide 33: Contact Information
Contact Information Daniel Drimmer Chief Executive Officer and Founder, Starlight Group Interim Chief Executive Officer, Trustee and Chairman, Northview Canadian High Yield Residential Fund ddrimmer@starlightinvest.com Tel: +1-647-729-2534 Martin Liddell Chief Financial Officer, Starlight Group Inte
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