Granite Real Estate Investment Trust · TSX:GRT.UN
Granite Real Estate Investment Trust — Investor Presentation (August 2023)
23 slides from Granite Real Estate Investment Trust's investor presentation, August 2023
Slide 1: Investor Presentation | August 2023
INVESTOR PRESENTATION | August 2020 INVESTOR PRESENTATION | August 2023
Slide 2: Presentation of Certain Information
PRESENTATION OF CERTAIN INFORMATION • Unless otherwise indicated in this presentation, all information is presented as of June 30, 2023 and all financial information that is identified as current refers to the period ending June 30, 2023. For definitions of certain non-IFRS performance measures and
Slide 3: Granite Highlights
GRANITE HIGHLIGHTS ORGANIZATIONAL PRINCIPLES PORTFOLIO OVERVIEW FINANCIAL PERFORMANCE • Long-term total return • 137 income-producing • 74% LTM AFFO POR2 focused properties + 6 • 32% net leverage ratio2 • Conservative and flexible development • 6.5 – 7.5% constant capital structure properties/land c
Slide 4: ESG+R Objectives and Targets
ESG+R OBJECTIVES AND TARGETS ENVIRONMENTAL SOCIAL GOVERNANCE RESILIENCE • Promote energy efficiency • Engage with our • Disclose our ESG+R • Identify and mitigate the and sustainable practices unitholders, employees, performance as a potential climate-related at both our properties and tenants, prop
Slide 5: ESG – GRESB 2022
ESG – GRESB 2022 Granite ranked 3rd in the United States of America Industrial public disclosure group Granite ranked 2nd in the North America/Industrial/Listed/Tenant Controlled peer group August 2023 5
Slide 6: ESG – $1B Green Bonds Use of Net Proceeds
ESG –$1B GREEN BONDS USE OF NET PROCEEDS (AS AT DEC 31, 20221) 2027 Debentures 2028 Debentures Location Eligible Green Certification Date Allocation Location Eligible Green Certification Date Allocation Lancaster, TX, USA LEED Silver Q1-19 $106.1 Mississauga, ON, Canada Two Green Globes Q3-22 11.03
Slide 7: Granite's Evolution
GRANITE’S EVOLUTION Investment Property Summary Then - December 31, 2012 Now - June 30, 2023 0.6M SF Flex/Office2 48.4M SF 11.8M SF $145M Distribution/E-commerce3 Multi-Purpose2 16.2M SF $6,285M 5.0M SF $690M Special Purpose Industrial/Warehouse2 $970M $8.8B $1,095M $1.7B Value 8.9M SF Value Special
Slide 8: Portfolio Transformation Strategy
PORTFOLIO TRANSFORMATION STRATEGY TARGET MARKETS MODERN FACILITIES E-COMMERCE TRENDS • Superior economic • Meet the demands of • Invest opportunistically in conditions and market E-Commerce and evolving property types fundamentals traditional distribution and markets benefiting • Proximity to major
Slide 9: Financial Performance
FINANCIAL PERFORMANCE Historical Operating Performance ($M)2 Distributions and Payout Ratios1,2 91% $497 82% 81% $456 80% 77% 74% $394 77% 75% $375 79% 73% 78% 70% $352 78% 66% $340 $299 3.20 $274 $275 3.10 $265 $264 $245 $248 $235 3.00 $216 $204 2.90 $185 $187 $173 2.80 $145 $138 2.72 2.60 2017 201
Slide 10: GRT Historical Performance
GRT HISTORICAL PERFORMANCE Total Return vs TSX Composite & TSX Capped REIT Indices Cumulative Total Return % Cumulative Total Return % 350% 100% 325% 300% 80% 275% 250% 60% 225% 200% 40% 175% 150% 20% 125% 100% 0% 75% 50% -20% 25% 0% -40% 1Yr 2Yr 3Yr 5Yr Granite REIT TSX Capped REIT Index TSX Compos
Slide 11: Globally Diversified Portfolio
GLOBALLY DIVERSIFIED PORTFOLIO 5 countries – 143 properties – 62.9 million square feet GERMANY 14 properties 4.7M SF CANADA 38 properties 6.5M SF NETHERLANDS 1 16 properties 2 5.4M SF 4 UNITED STATES 66 properties 38.8M SF AUSTRIA 9 properties 7.5M SF Special Purpose Properties Global footprint with
Slide 12: Portfolio Segmentation by Geography
PORTFOLIO SEGMENTATION BY GEOGRAPHY By Income Producing Property Fair Value By Annualized Revenue $808M 21% $1,845M $60.8M $64.4M 15% 15% 9% $774M $40.5M 9% 10% $8.7B $418.5M $614M 7% 8% $35.6M $4,653M $217.2M 54% 52% By Square Feet By Number of Income-Producing Properties 7.5M 6.5M 12% 10% 9 25% 34
Slide 13: IPP Portfolio Segmentation by Category
IPP PORTFOLIO SEGMENTATION BY CATEGORY Distribution/E-commerce Properties Industrial/Warehouse 95 Properties 32 Properties 48.4M SF (∼510K SF/property) 5.0M SF (∼155K SF/property) $6.3B Fair Value (∼$130/SF): 72% $1.1B Fair Value(∼$220/SF): 13% WALT: 4.2 years WALT: 6.2 years $43.6M Annualized Reven
Slide 14: Development and Expansion Pipeline
DEVELOPMENT AND EXPANSION PIPELINE Brantford, Ontario (Phase I) ~410K SF Ajax, Ontario ~50K SF Active development program to enhance total return & platform value August 2023 14
Slide 15: Lease Expiration Profile
LEASE EXPIRATION PROFILE Outstanding Lease Expiries by Annualized Revenue Annualized Overall Revenue $418.5M WALT 6.5 Years Occupancy 96.3% Canada USA Germany Netherlands Austria 52.1% 120 100 Annualized Revenue (C$M) 80 60 12.8% 40 10.1% 6.5% 8.2% 8.8% 1.4% 20 0 2023 2024 2025 2026 2027 2028 2029+
Slide 16: High Quality & Creditworthy Tenant Base
HIGH QUALITY & CREDITWORTHY TENANT BASE Other Tenants Annualized Credit Top 10 Tenants GLA % WALT Revenue % Rating1,2 Magna 26% 19% 7.6 A- Amazon 4% 4% 15.7 AA Mars Petcare US 3% 4% 7.1 NR True Value Company 2% 2% 17.7 NR Adesa 2% —% 6.1 CC Restoration Hardware 2% 2% 4.8 Ba3 Light Mobility Solutions
Slide 17: Balance Sheet Strength
BALANCE SHEET STRENGTH Capitalization Debt Maturity Profile Unit Price (08/04/2023) $78.02 $700 6.00% Units Outstanding 63.7 5.02% $600 5.00% Market Capitalization1 $4,973 Weighted average interest rate Credit Facility Draws due Mar/28 $90 $500 4.00% Debentures 3.873% due Nov/23 $400 2.96% $400 US$1
Slide 18: Financial Flexibility & Target Long-Term Leverage Ratio
FINANCIAL FLEXIBILITY & TARGET LONG-TERM LEVERAGE RATIO1 • Strong balance sheet provides pathway for measured growth with potential for further diversification and optimization of the portfolio • Target long term net leverage ratio1 of ∼30 - 35% while maintaining patient and opportunistic approach t
Slide 19: Leadership Team
LEADERSHIP TEAM Kevan Gorrie Teresa Neto Lorne Kumer Michael A. Ramparas President and Chief Executive Officer Chief Financial Officer Executive Vice President, Executive Vice President, Global Head of Global Real Estate Real Estate & Head of Investments Witsard Schaper Lawrence Clarfield Jon Sorg S
Slide 20: Investor Relations Contact
INVESTOR RELATIONS CONTACT Andrea Sanelli Associate Director, Legal & Investor Services T: 647.925.7504 E: ir@granitereit.com August 2023 20
Slide 21: Appendix
APPENDIX The following non-IFRS performance measures and non-IFRS ratios are important measures used by management in evaluating the Trust’s underlying operating performance and debt management. These non-IFRS performance measures and non-IFRS ratios are not defined by IFRS and do not have standar
Slide 22: B) Non-IFRS Ratios
Same property net operating income - cash basis Same property NOI - cash basis refers to the NOI - cash basis for those properties owned by Granite throughout the entire current and prior year periods under comparison. Same property NOI - cash basis excludes properties that were acquired, disposed o
Slide 23: Interest Coverage Ratio
Interest coverage ratio The interest coverage ratio is calculated on a 12-month trailing basis using Adjusted EBITDA (a non-IFRS performance measure) divided by net interest expense. Granite believes the interest coverage ratio is useful in evaluating the Trust’s ability to meet its interest expense
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