Automotive Properties Real Estate Investment Trust · TSX:APR.UN
Automotive Properties Real Estate Investment Trust — Investor Presentation (January 2025)
30 slides from Automotive Properties Real Estate Investment Trust's investor presentation, January 2025
Slide 1: Consolidating Automotive and OEM Properties
Consolidating Automotive and OEM Properties Investor Presentation JANUARY 2025
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS Certain statements contained in this presentation constitute forward-looking information within the meaning of applicable securities legislation. Forward-looking information may relate to the REIT’s future outlook and anticipated events or results and may includ
Slide 3: Driving Real Estate Forward: Vision and Mission
Driving Real Estate Forward Vision To be the net lease real estate partner of choice for the automotive dealership and retail community Mission Invest in premier properties in growing metropolitan markets to deliver durable and growing cash flow underpinned by long-term real estate appreciation ESSE
Slide 4: Capital Market Profile
Capital Market Profile (TSX: APR.UN) Investment properties: Recent price: $10.99 1 $1.21 billion 2,3 Market capitalization: REIT Units: 49.09 million Total return: 540 million 1 IPO to Nov. 25, 2024: 130.4% 4 Annualized distribution Yield ¹ Debt to GBV 2 LTM AFFO Payout Ratio 2 2023 tax treatment In
Slide 5: Essential Retail on Prime Urban Land
Essential Retail on Prime Urban Land 1 • Tripled assets from < $400 million to ~$1.2 billion since 2015 IPO • Prime urban properties supported by GDP and population growth, intensification, and higher and better use scenarios 78 255 acres income-producing properties of commercially-zoned urban real
Slide 6: Quality Tenants
Quality Tenants 1 • Long-term triple-net / net leases, indemnified by leading automotive groups and OEMs • Defensive income (100% occupancy / no bad debt write-offs) supported by underlying land value appreciation • Embedded growth with contractual annual set or CPI-linked escalations 3 2 Tesla ▪ Le
Slide 7: Essential Automotive Service & Retail
Essential Automotive Service & Retail
Slide 8: Essential Retail - Automotive Dealership Industry
Essential Retail - Automotive Dealership Industry Retail Sales ($billions) 132 146 160 162 165 151 176 188 211 Auto ~ 27% 113 122 Other Auto industry’s proportion of 92 96 94 88 96 100 105 83 83 87 Retail Canada’s overall retail sales of products and merchandise in 2023 2003 2004 2005 2006 2007 2008
Slide 9: Automotive Dealership Group Profit Centres
Automotive Dealership Group Profit Centres Average revenue / profit % contribution per business segment for major North American automotive dealership groups¹ Parts, service and repair Finance and Insurance New vehicle sales Used vehicle sales 10% 20% 30% 40% 50% Percentage of total revenue (average
Slide 10: Manufacturer / Brand Diversification
Manufacturer / Brand Diversification Manufacturers by Region Brands by Market Segment (% of Base Rent from Dealership Properties)1 (% of Base Rent from Dealership Properties)1 North America 16% Ultra Luxury4 4% Luxury3 39% Asia 49% Europe 35% Mass Market2 57% 18.3% 11.3% Manufacturer / Brand (By % o
Slide 11: Automotive Industry Developments & Evolution
Automotive Industry Developments & Evolution • New entrants from Asia entering NA market • Consumer buying habits being met by enhanced dealership e-commerce offerings and curbside pick-up and service • Electric vehicles – low penetration, but gradually increasing • EV registrations comprised 7.7% o
Slide 12: Stability & Performance
Stability & Performance ZN , NN 7 Nutomotive Properties REIT ~\_ ™
Slide 13: Stable Growth Platform
Stable Growth Platform 4.1 years 4.31% 94% ~ 80% Weighted average Weighted average Portion of total debt at exposure to VECTOM interest rate swap term fixed interest rate fixed interest rates¹ markets1 and mortgage remaining¹ on debt¹ 9.1 years 2.2% 100% 43.7% Weighted average Q3 2024 Same Property
Slide 14: Strong Leasing Profile
Strong Leasing Profile 1 • Long-term triple-net / net leases with weighted • Fixed 1.5% annual rent escalator for the 36 Dilawri properties average term of 9.1 years over the next 1.5 – 17.1 years • Leases are indemnified by multi-brand, multi- • For 2024, leases with uncapped CPI-related adjustment
Slide 15: Debt Profile
Debt Profile • 94% of debt fixed through swaps and mortgages • Flexible financing structure (ability to expand, rotate assets and repay or renew) • Strong support from diversified lender base Principal Effective Fixed Rate of Amount withdrawn against At Sept. 30, 2024 ($000s) Maturity Repayment Amou
Slide 16: Q3 2024 Financial Review
Q3 2024 Financial Review Cash NOI ($000s) FFO ($000s) 1 19,680 Same Property 19,213 11,967 11,920 Cash NOI $0.239 $0.237 per Unit per Unit (diluted) (diluted) 2.2% 84.1% 84.8% Payout Ratio Payout Ratio Q3 2023 Q3 2024 Q3 2023 Q3 2024 AFFO ($000s) 1 Debt to GBV 11,690 44.5% 43.7% 11,499 $0.230 $0.233
Slide 17: YTD 2024 Financial Review
YTD 2024 Financial Review ($000s, except per unit amounts Nine months ended Nine months ended Variance and payout ratios) September 30, 2024 September 30, 2023 Revenue from investment properties $ 70,461 $ 69,193 1.8% Cash NOI 58,724 57,026 3.0% Same property Cash NOI 56,247 54,922 2.4% FFO 1 36,004
Slide 18: Growth
Growth
Slide 19: Portfolio Diversification & Growth
Portfolio Diversification & Growth At July 2015 IPO At Sept. 30, 2024 Ottawa Regina Edmonton 9.2% 18% Greater Toronto Area 6.1% 22.5% Markets > Toronto Vancouver 46% Greater Montreal Area (By GLA) 18% 23.7% Remaining Portfolio Vancouver 21.4% Calgary 6.9% Calgary 18% 10.2% Tenants > Base Rent Dilawr
Slide 20: Kennedy Lands Property Sale
Kennedy Lands Property Sale Sold Kennedy Lands in Markham, ON for $54 million in October 2024 • Sold the automotive dealership property located at 8210 and 8220 Kennedy Road and 7 and 13/15 Main Street to an affiliate of Dilawri Significant benefits for the REIT • Sale price was a 79% premium above
Slide 21: New Acquisitions
New Acquisitions Announced agreements to purchase a Rivian-tenanted property in Tampa, FL and two OEM dealership properties in the Greater Montreal Area • Purchase price of ~US$13.5 million for the Tampa property and ~$25.4 million for the Greater Montreal properties • Greater Montreal property acqu
Slide 22: Acquisition Growth (July 2015 IPO to Present)
Acquisition Growth (July 2015 IPO to Present) • 55 properties acquired / four property expansions / two property divestitures • ~$727 million deployed • Added ~2.0 million square feet of GLA to portfolio • Acquisitions indirectly funded by six fully-subscribed equity offerings totaling ~$409.5 milli
Slide 23: Opportunity to Consolidate Highly Fragmented Auto Dealer Industry
Opportunity to Consolidate Highly Fragmented Auto Dealer Industry Proportion of Canada’s ~ 3,500 Auto Dealerships 10 Dealership Groups: Approximately 13.4% of the Canadian Market 2 by Size of Ownership Group 1 Company Dealerships % of Total Dilawri Group (3) 80 2.3% Go Auto(3) 65 1.9% AutoCanada(3)
Slide 24: Embedded Growth
Embedded Growth REIT lease structure and strategy drive Same Property NOI • Contractual set rent increases and CPI-linked adjustments • For 2024, leases with CPI adjustments represent ~26% of base rent • An additional 10% of existing leases are subject to capped CPI- related adjustments • Triple-net
Slide 25: Sample Urban Properties - 2022 Demographics
Sample Urban Properties - 2022 Demographics Radius Average Household Income 5-Year 10-Year Property (3 KM) Average (2022) Population Growth Population Growth Hyundai Honda, Gallery $136,498 11.33% 11.33% Audi Vaughan $126,499 12.02% 12.02% Average population Markham Acura $118,524 10.79% 10.79% 230k
Slide 26: Investment Highlights
Investment Highlights • Canadian automotive and OEM service and retail are essential businesses • High-quality portfolio of properties located in commercial corridors in growing metropolitan markets across Canada (~80% VECTOM) • 100% leased / 100% rent collection • Debt strategy / structure reduces
Slide 27: Appendix
La, “ >. 7 Automotive Properties REIT —\_ ™
Slide 28: APR.UN Price Performance
APR.UN Price Performance 12 months ended January 6, 2025 January 2024 July 2024 January 2025 27
Slide 29: Strong Majority Independent Board
Strong Majority Independent Board Name & Domicile Principal Occupation Kap Dilawri, Chair Co-Founder and President of the Dilawri Group Ontario, Canada Patricia Kay Former Senior Vice President, Dealer Finance – Bank of America Merrill Lynch Massachusetts, United States Milton Lamb President & CEO o
Slide 30: Dilawri Group
Dilawri Group Dilawri 5-Year Historical Revenues ($billions) $5.0 • REIT has the first right to acquire from Dilawri $4.1 development and acquisition pipeline $3.8 $3.4 $3.8 • Historically, Dilawri has, on average, opened or acquired five new automotive dealerships per year, including two to three a
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