H&r Real Estate Investment Trust · TSX:HR.UN
H&r Real Estate Investment Trust — Lantower Residential Real Estate Development Trust (No. 1) — Investor Presentation (February 2024)
30 slides from H&r Real Estate Investment Trust's investor presentation, Feb 19, 2024
Slide 1: Real Estate Development Trust (No. 1)
REAL ESTATE DEVELOPMENT TRUST (No. 1) TAMPA AND ORLANDO MSA’s, FLORIDA SPONSORED BY: LANTOWER BAYSIDE RENDERING Tampa, FL This presentation is dated February 19, 2024. A preliminary prospectus dated February 19, 2024 (the “preliminary prospectus”) containing important information relating to the sec
Slide 2: Disclaimer
DISCLAIMER Prospective investors should rely only on information contained in the preliminary prospectus. This presentation is qualified in its entirety by reference to, and must be read in conjunction with, the information contained in the preliminary prospectus. Neither Lantower Residential Real E
Slide 3: Disclaimer: Forward-Looking Information
DISCLAIMER FORWARD-LOOKING INFORMATION This presentation as well as oral statements made during the course of the oral presentation may contain “forward-looking information” within the meaning of applicable securities laws. Such forward-looking information includes statements with respect to the RED
Slide 4: Opportunity Overview
OPPORTUNITY OVERVIEW LANTOWER RESIDENTIAL REAL ESTATE DEVELOPMENT TRUST (No. 1) (“Lantower REDT” or the “REDT”) Lantower REDT allows investors the opportunity to invest alongside H&R Real Estate Investment Trust (“H&R REIT”) and Lantower Residential (the “Current Owner”) in the development of two mu
Slide 5: Fund Investment and Return Objectives
FUND INVESTMENT AND RETURN OBJECTIVES INVESTMENT OBJECTIVES: • (a) Provide Unitholders with an opportunity to indirectly own an interest in each of the Bayside Project and Sunrise Project currently wholly-owned by a subsidiary of H&R REIT and located in Largo, Florida (Tampa) and Kissimmee, Florida
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS EXPERIENCED AND ALIGNED MANAGEMENT AND SPONSORSHIP TEAM WITH STRONG TRACK RECORD • Invest alongside a publicly-traded REIT and its Sun Belt multifamily subsidiary, Lantower Residential • H&R REIT owns over 26.9 million square feet of properties and has over 5,000 residential re
Slide 7: Manager Overview
R E P R E S E N TAT I V E P R O J E C T S MANAGER OVERVIEW EXPERIENCED AND ALIGNED MANAGEMENT AND SPONSORSHIP TEAM WITH STRONG TRACK RECORD H&R REIT (TSX: HR.UN) is one of Canada's largest fully internalized real estate investment trusts with total assets of C$10.8 billion. Since its inception, H&R
Slide 8: Key Fund Personnel
KEY FUND PERSONNEL EXPERIENCED AND ALIGNED MANAGEMENT AND SPONSORSHIP TEAM WITH STRONG TRACK RECORD MICHAEL LOEB CHERYL FRIED HUNTER WEBB Chief Executive Officer Chief Financial Officer Chief Development Officer • Lantower Residential’s Executive Vice President of • Joined H&R REIT in 2006 and curre
Slide 9: Key Development Projects Stats
KEY DEVELOPMENT PROJECTS STATS LANTOWER BAYSIDE LANTOWER SUNRISE ADDRESS 16485 Hwy 19 N, Largo, FL Sunrise City Dr., Kissimmee, FL SITE AREA 8.4 Acres 17.2 Acres # OF SUITES 271 330 AVG. UNIT SIZE 962 SF 1,037 SF RENTABLE SQUARE FOOTAGE ~261,000 ~342,000 # OF STORIES 4 4 PARKING/GARAGES 423 Total Pa
Slide 10: Investment Highlights: Governance and Alignment
INVESTMENT HIGHLIGHTS STRONG GOVERNANCE AND ALIGNMENT OF INTERESTS WITH THE CURRENT OWNER L A N T O W E R B AY S I D E LANTOWER SUNRISE TA M P A M S A ORLANDO MSA Rendering Rendering INVESTMENT AT DISCOUNT TO APPRAISAL: Unitholders have the opportunity to purchase an interest in the Projects at the
Slide 11: Investment Highlights: Zoning and Development Cost Certainty
INVESTMENT HIGHLIGHTS ZONING COMPLIANT AND ENTITLED DEVELOPMENT PROJECTS WITH ADVANCED GMP, DEVELOPMENT BUDGETS ALLOWING FOR REDUCED RISK L A N T O W E R B AY S I D E LANTOWER SUNRISE TA M P A M S A ORLANDO MSA Rendering Rendering ZONING COMPLIANT AND ENTITLED: Significantly reducing the risk profil
Slide 12: Institutional Markets with Strong Location Fundamentals
INVESTMENT HIGHLIGHTS INSTITUTIONAL MARKETS WITH STRONG LOCATION FUNDAMENTALS THE BAYSIDE PROJECT THE SUNRISE PROJECT HOWARD FRANKLIN BRIDGE EXPANSION WESTSHORE ±102,000 Jobs I-4 ULTIMATE 5.8-mile, $865 million 20MSF Office Space ROADWAY EXPANSION • $2.3B portion opened in February 2022 expansion to
Slide 13: Strong Location Fundamentals
INVESTMENT HIGHLIGHTS STRONG LOCATION FUNDAMENTALS THE BAYSIDE PROJECT THE SUNRISE PROJECT CALADESI ISLAND STATE PARK 15 MIN DRIVE #4 Best Beach in US Forbes 2023 LANTOWER BAYSIDE CLEARWATER BEACH #2 Best Beach in US Tripadvisor 2023 35 MILES LANTOWER OF BEACHES SUNRISE ST. PETE BEACH #1 Best Beach
Slide 14: Rental Markets in Tampa and Orlando Poised for Growth
INVESTMENT HIGHLIGHTS RENTAL MARKETS IN TAMPA AND ORLANDO POISED FOR GROWTH SUPPORTED BY ECONOMIC STABILITY AND PROPENSITY TO RENT TAMPA MARKET (BAYSIDE PROJECT) ORLANDO MARKET (SUNRISE PROJECT) R E N T G R O W T H A N D VA C A N C Y R AT E S ( H I S T O R I C A L & P R O J E C T E D ) R E N T G R O
Slide 15: Lantower Bayside
LANTOWER BAYSIDE TAMPA MSA 271-UNIT LUXURY APARTMENT DEVELOPMENT Rendering FUND OVERVIEW 15
Slide 16: Opportunity Overview: Site Location Fundamentals
OPPORTUNITY OVERVIEW STRONG SITE LOCATION FUNDAMENTALS TAMPA BAY U S H W Y. 1 9 LANTOWER BAYSIDE FUND OVERVIEW 16
Slide 17: Amenities
AMENITIES MARKET-LEADING DESIGN INTERIOR FEATURES • State-of-the-Art Smart Apartment Homes • 10+ Foot Ceiling Heights in All Units • 8 Foot Interior Unit Doors Throughout • ENERGY STAR Upgraded Stainless-Steel Appliances • LED Edge-Lit Vanity Mirrors • Wood Plank Flooring Throughout • Quartz Counter
Slide 18: Renderings
RENDERINGS MARKET-LEADING DESIGN LANTOWER BAYSIDE LANTOWER BAYSIDE POOL COURTYARD RENDERING COURTYARD RENDERING LANTOWER BAYSIDE LANTOWER BAYSIDE FITNESS CENTER RENDERING CLUBROOM RENDERING FUND OVERVIEW 18
Slide 19: Renderings
RENDERINGS MARKET-LEADING DESIGN LANTOWER BAYSIDE LANTOWER BAYSIDE COWORKING RENDERING B3 UNIT RENDERING LANTOWER BAYSIDE LANTOWER BAYSIDE LOBBY RENDERING A2 UNIT BATHROOM RENDERING FUND OVERVIEW 19
Slide 20: Lantower Sunrise
LANTOWER SUNRISE ORLANDO MSA 330-UNIT LUXURY APARTMENT DEVELOPMENT Rendering FUND OVERVIEW 20
Slide 21: Opportunity Overview: Site Location Fundamentals
OPPORTUNITY OVERVIEW STRONG SITE LOCATION FUNDAMENTALS GROCERY LANTOWER SUNRISE FUND OVERVIEW 21
Slide 22: Amenities
AMENITIES MARKET-LEADING DESIGN INTERIOR FEATURES • State-of-the-Art Smart Apartment Homes • 10+ Foot Ceiling Heights in All Units • 8 Foot Interior Unit Doors Throughout • ENERGY STAR Upgraded Stainless-Steel Appliances • LED Edge-Lit Vanity Mirrors • Wood Plank Flooring Throughout • Quartz Counter
Slide 23: Renderings
RENDERINGS MARKET-LEADING DESIGN LANTOWER SUNRISE LANTOWER SUNRISE LOBBY RENDERING FITNESS CENTER RENDERING LANTOWER SUNRISE LANTOWER SUNRISE LANTOWER SUNRISE POOL RENDERING COWORKING RENDERING CLUBROOM RENDERING FUND OVERVIEW 23
Slide 24: Renderings
RENDERINGS MARKET-LEADING DESIGN LANTOWER SUNRISE A2 UNIT LIVING ROOM RENDERING LANTOWER SUNRISE LANTOWER SUNRISE A2 UNIT KITCHEN RENDERING A2 UNIT BATHROOM RENDERING FUND OVERVIEW 24
Slide 25: Project Timelines & Ownership Structure
PROJECT TIMELINES & OWNERSHIP STRUCTURE LANTOWER BAYSIDE & LANTOWER SUNRISE PROJECT SCHEDULES 2023 2024 2025 2026 2027 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q PRE- CONSTRUCTION CONSTRUCTION LEASE-UP LIQUIDITY EVENT SIMPLIFIED OWNERSHIP STRUCTURE BASED IN BASED IN CANADA THE U.S. INDIRECT
Slide 26: Proposed Fund Terms
PROPOSED FUND TERMS PROJECT DETAILS • Projects acquired by the Current Owner in 2024 and 2019, now fully zoned with construction anticipated to commence in April 2024 • Unitholder acquisition cost of $21.3 million, including land cost and costs incurred to date, below appraised value based on apprai
Slide 27: Financial Projections
FINANCIAL PROJECTIONS The projected Unitholder Returns upon the occurrence of a Liquidity Event are based on the forecasted value of the Property at Stabilization, which is expected to occur once the Project reaches stabilized occupancy of 95%. VALUE AT STABILIZATION BAYSIDE SUNRISE COMBINED CAPITAL
Slide 28: Trustees
TRUSTEES TOM HOFSTEDTER MICHAEL LOEB H&R REIT LANTOWER RESIDENTIAL EXECUTIVE CHAIRMAN AND CHIEF EXECUTIVE OFFICER EVP OF CORPORATE DEVELOPMENT • More than 40 years of experience in the commercial and • Lantower Residential’s Executive Vice President of residential real estate sector in North America
Slide 29: Contact Information
CONTACT INFORMATION MICHAEL LOEB GREG KAY EVP – CORPORATE Development Executive Director mloeb@lantower.com greg.kay@cibc.com 214-421-4400 437-240-3719 Lantower Residential CIBC Capital Markets 2218 Bryan Street, Suite 400 161 Bay Street Dallas, TX 75215 Toronto, ON, M5J 2S8 www.Lantower.com www.cib
Slide 30: Investment Highlights Summary
SPONSORED BY: REAL ESTATE DEVELOPMENT TRUST (No. 1) INVESTMENT HIGHLIGHTS SUMMARY TAMPA AND ORLANDO MSA’s, FLORIDA 271 & 330 SUITE MULTIFAMILY DEVELOPMENTS EXPERIENCED SPONSORSHIP TEAM 18-20% TARGET ANNUAL RETURN(1) 3.5-YEAR PROJECTED LANTOWER BAYSIDE RENDERING TIMELINE(2) TAMPA, FL $10K MINIMUM INV