Plaza Retail Reit · TSX:PLZ.UN
Plaza Retail Reit — Shareholder Meeting (2018)
27 slides from Plaza Retail Reit's shareholder meeting presentation, 2018
Slide 1: Annual Meeting of Unitholders 2018
Annual Meeting of Unitholders 2018
Slide 2: Caution Concerning Forward Looking Statements & Non-IFRS Financial Measures
Caution Concerning Forward Looking Statements & Non- IFRS Financial Measures Certain information in this presentation and oral answers to questions may contain forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking inform
Slide 3: Agenda
Agenda Remarks from Chair of the Board Business of the Meeting • election of trustees • appointment of auditor Presentation by President & CEO Question and Answer Period 3
Slide 4: Our Portfolio: Tenancies
Our Portfolio: Tenancies Top Ten Tenants – 56.9% National & Regional Tenants (Q1 2018) (Q1 2018) 4.0% 1.5% 25.1% 3.6% 8.1% National 4.7% 3.9% Regional 3.9% Local 3.1% Non-Retail 2.9% 2.2% 1.6% 90.9% 1.4% 0 10 20 30 Quality tenant mix of creditworthy national retailers 4
Slide 5: Business of the Meeting
Business of the Meeting Election of Trustees Appointment of Auditor 5
Slide 6: Why Is Plaza Unique?
Why Is Plaza Unique? Plaza focuses on per unit growth through accretive developments 1 and redevelopments. Plaza is fully internalized and able to develop new retail 2 properties using in-house resources - Plaza does not buy properties from 3rd party developers or from related parties at low cap rat
Slide 7: 297 properties 26 projects
Profile Existing Portfolio Developer and owner of retail properties 297 properties primarily in Atlantic Canada, Quebec and Ontario ~ 8.1M square feet Strong relationships with leading retailers National tenants comprise ~90% Development Pipeline of gross leasable area 18 year history of acc
Slide 8: Our Developments/Redevelopments
Our Developments/Redevelopments Developments/redevelopments are our core business and generate our growth ∼13¢ per unit in incremental NAV and ∼1¢ per unit in incremental FFO added annually on typical $40MM of developments vs acquisitions Solid and robust pipeline supports this continued growt
Slide 9: Redevelopment Successes
Redevelopment Successes Kenora Shopping Mall, Kenora, ON 9
Slide 10: Redevelopment Successes
Redevelopment Successes RioCan JV – East Court Mall, Cornwall, ON 10
Slide 11: Redevelopment Successes
Redevelopment Successes 3000 St. Charles Blvd. 960 Cole Harbour Rd., Kirkland, QC Dartmouth, NS 11
Slide 12: Redevelopment Successes
Redevelopment Successes 600 JP Perrault, Sherbrooke, Mountainview Plaza, Midland, ON QC 12
Slide 13: Up and Coming
Up and Coming 1000 Islands Plaza, Brockville, ON (with former Sears) National tenants include: - Shopper’s Drug Mart - Bulk Barn - RBC - Galaxy Cinemas - Staples 13
Slide 14: Up and Coming
Up and Coming 1324 Blvd Talbot, Saguenay (Chicoutimi), QC (former Sears) 14
Slide 15: Up and Coming
Up and Coming 100 Saint-Jude Nord, Granby, QC 15
Slide 16: Up and Coming
Up and Coming ANBL Pad – Lansdowne Plaza, Saint John, NB 16
Slide 17: Up and Coming
Up and Coming ANBL Pad – Gateway Mall, Sussex, NB 17
Slide 18: Up and Coming
Up and Coming ANBL Pad - KGH Plaza, Miramichi, NB 18
Slide 19: Hot Topic – E-Commerce
Hot Topic – E-Commerce Media attention around retailer woes Canadian retailers are facing a variety of serious challenges: fierce competition, out-dated business models, lack of execution, e-commerce and changing trends in retail properties Success and growth will come from both on-line sales
Slide 20: Hot Topic – E-Commerce (cont’d)
Hot Topic – E-Commerce (cont’d) Our Retail Categories: REVENUE BY RETAIL CATEGORY Pharmacy/ Medical 31% Restaurant/ Entertainment Other 18% 4% Pet 3% Electronics/Cell Specialty Retail 2% 13% Treasure Fashion 4% Home Décor & Furniture 3% Fashion 6% Banking/ Financial Dollar Store Grocery / Liquor 4%
Slide 21: Our Portfolio: Geography
Our Portfolio: Geography Percentage by Region: Sq. Ft. PROVINCE # Properties Region (000s) Alberta 10 53 Western Manitoba 6 30 Western Ontario 70 1,543 Ontario Atlantic Québec 100 2,187 Québec 53% New Brunswick 51 1,838 Atlantic Newfoundland 12 680 Atlantic Nova Scotia 37 1,190 Atlantic P.E.I. 11 59
Slide 22: Our Portfolio: Lease Expiry Schedule
Our Portfolio: Lease Expiry Schedule 800,000 13.2% 700,000 11.4% 11.6% 10.6% 600,000 500,000 Square Feet 400,000 6.0% 300,000 4.3% 200,000 100,000 0 Remainder 2019 2020 2021 2023 2023 2018 Strip Plazas Enclosed Malls Single-User Single-User Total Retail QSR Average Lease Term 6.2 years 3.4 years 7.4
Slide 23: Our Portfolio: Mortgage Maturities
Our Portfolio: Mortgage Maturities 18.0% 17.1% 16.0% 13.8% 14.0% 12.0% % of Total Principal 10.0% 8.0% 8.0% 6.9% 7.1% 6.0% 4.0% 2.3% 2.0% 0.0% Remainder 2018 2019 2020 2021 2022 2023 $8.5M $52.0M $64.4M $26.0M $26.9M $30.1M WA Expiring Rate 4.88% 3.91% 4.73% 4.98% 4.35% 4.92% WA Term to Maturity = 5
Slide 24: Track Record of Distribution Increases
Track Record of Distribution Increases $0.30 $0.25 $0.20 Per Unit $0.15 $0.10 $0.05 $0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Financial profile: debt is down; distributions are up; conservative payout ratio 24
Slide 25: Cumulative Dividend/Distribution Growth vs Peers
Cumulative Dividend/Distribution Growth vs Peers 250.00% 200.00% Plaza SmartREIT 150.00% Crombie 100.00% First Capital 50.00% Riocan 0.00% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 25
Slide 26: Investment Highlights
Investment Highlights Unique positioning as a developer and value creation REIT Leveraging competitive advantage in Atlantic Canada Focus on value, convenience and specialty retail Stable, high occupancy with national tenants comprising ~90% of revenue Superior returns through property dev
Slide 27: LAR
LAR Reta REIT