Granite Real Estate Investment Trust · TSX:GRT.UN
Granite Real Estate Investment Trust — Investor Presentation (May 2021)
21 slides from Granite Real Estate Investment Trust's investor presentation, May 2021
Slide 1: Investor Presentation
INVESTOR PRESENTATION | August 2020 INVESTOR PRESENTATION | May 2021
Slide 2: Presentation of Certain Information
PRESENTATION OF CERTAIN INFORMATION • Unless otherwise indicated in this presentation, all information is presented as of March 31, 2021 and all financial information that is identified as current refers to the period ending March 31, 2021. For definitions of certain non-IFRS measures used in this p
Slide 3: Granite Highlights
GRANITE HIGHLIGHTS ORGANIZATIONAL PRINCIPLES PORTFOLIO OVERVIEW FINANCIAL PERFORMANCE Long-term total return focused 108 income-producing properties + 78% LTM AFFO POR 7 development properties/land Conservative and flexible capital 25% net leverage ratio 50.4M square feet with 99.1% structure occupa
Slide 4: Granite Highlights - ESG
GRANITE HIGHLIGHTS - ESG ENVIRONMENTAL SOCIAL GOVERNANCE Promote energy efficiency and sustainable practices at our Promote employee well-being 100% independent Board properties excluding CEO Reduce use of resources and promote waste diversion Promote volunteerism and Experienced and diverse board c
Slide 5: ESG - $500M Green Bond Use of Net Proceeds
ESG - $500M GREEN BOND USE OF NET PROCEEDS (AS AT DEC 31, 20201) Property Eligible Green Certification Date Allocation 3501 North Lancaster Hutchins Rd, Lancaster, TX, USA LEED Silver Green Building Mar 1/19 $106.1 Oude Graaf 15, Weert, NED BREEAM “Excellent” Green Building May 1/20 31.9 1201 Allpoi
Slide 6: Granite's Evolution
GRANITE’S EVOLUTION Investment Property Summary Then - December 31, 2011 Now - March 31, 2021 0.7M SF Flex/Office2 13.8M SF 14.1M SF $137M Multi-Purpose2 Special Purpose 5.7M SF $802M $1,089M Industrial/Warehouse2 35.1M SF $766M $1.9B $6.0B Distribution/E-commerce3 $3,987M 8.9M SF Value Special Purp
Slide 7: Portfolio Transformation Strategy
PORTFOLIO TRANSFORMATION STRATEGY Invest selectively/opportunistically in Target markets with superior Focus on modern facilities that meet evolving property types and markets economic conditions and market the demands of E-Commerce and benefiting from technological fundamentals traditional distribu
Slide 8: Financial Performance
FINANCIAL PERFORMANCE Historical Operating Performance ($M) Distributions and Payout Ratios $358 91% $340 82% 81% 79% 77% 71% $274 $273 $265 75% 78% 79% 73% $245 $248 78% 3.00 71% 2.90 $223 2.80 $214 $216 $216 $218 69% 68% 68% 2.72 $204 2.60 $188 $185 $187 $183 $181 $173 2.43 $162 $154 $158 2.30 $14
Slide 9: GRT Historical Performance
GRT HISTORICAL PERFORMANCE Total Return vs TSX Composite & TSX Capped REIT Indices Cumulative Total Return % Annualized Total Return % COVID-19 295% 50% 270% 45% 245% 40% 220% 35% 195% 170% 30% 145% 25% 120% 20% 95% 70% 15% 45% 10% 20% 5% -5% 0% 1Yr 2Yr 3Yr 5Yr Granite REIT TSX Capped REIT Index TSX
Slide 10: Globally Diversified Portfolio
GLOBALLY DIVERSIFIED PORTFOLIO 7 countries – 115 properties – 50.4 million square feet POLAND 2 properties GERMANY 0.3M SF 11 properties 3.5M SF CANADA 30 properties 5.9M SF NETHERLANDS 1 2 2 12 properties 3.8M SF 4 UNITED STATES 48 properties CZECH 28.5M SF REPUBLIC Special Purpose AUSTRIA 1 proper
Slide 11: Portfolio Segmentation by Geography
PORTFOLIO SEGMENTATION BY GEOGRAPHY By Income Producing Property Fair Value By Annualized Revenue $55.3M $53.3M $996M 17% 20% $1,178M 17% 16% $777M 13% $5.9B $63M 19% $326M $2,985M $154.6M 47% 50% By Square Feet By Number of Income-Producing Properties 7.9 12% 5.9 16% 24 30 22% 28% 16% 50.4M 11 10%
Slide 12: Portfolio Segmentation by Category
PORTFOLIO SEGMENTATION BY CATEGORY Income-Producing Properties by Value Segmented by Category Distribution/E-commerce Properties Industrial/Warehouse 64 Properties 33 Properties 35.1 M SF (∼549K SF/property) 5.7 M SF (∼173K SF/property) $4.0 B Fair Value (∼$114/SF) $0.8 B Fair Value(∼$134/SF) WALT:
Slide 13: Development and Expansion Pipeline
DEVELOPMENT AND EXPANSION PIPELINE Altbach, Germany ~0.3M SF Fort Worth, Texas ~0.6M SF Mississauga, Ontario (expansion) ~0.1M SF Houston, Texas ~0.7M SF Active development program to enhance total return & platform value May 2021 13
Slide 14: Lease Expiration Profile
LEASE EXPIRATION PROFILE Outstanding Lease Expiries by Annualized Revenue Annualized Overall Revenue $326.1M WALT 6.1 Years Occupancy 99.1% 90 42.3% 80 Canada USA Austria Europe 70 Annualized Revenue (C$M) 60 50 19.0% 40 9.9% 12.7% 30 7.7% 8.2% 20 0.2% 10 0 2021 2022 2023 2024 2025 2026 2027+ % of A
Slide 15: High Quality & Creditworthy Tenant Base
HIGH QUALITY & CREDITWORTHY TENANT BASE Other Tenants Annualized Credit Top 10 Tenants GLA % WALT Revenue % Rating Magna 35% 27% 4.4 A- Amazon 6% 5% 17.9 AA- ADESA 2% —% 8.3 NR Hanon Systems 2% 1% 8.4 BBB Restoration Hardware 2% 2% 7.1 NR Spreetail FTP 2% 2% 5.6 NR Ingram Micro 2% 2% 3.8 BB- Corners
Slide 16: Balance Sheet Strength
BALANCE SHEET STRENGTH Capitalization Debt Maturity Profile Unit Price (04/30/2021) $78.69 $1,200 Units Outstanding 61.7 999 Weighted average debt term-to-maturity – 6.0 years Market Capitalization $4,856 $1,000 Weighted average cost of debt – 1.74% $800 Credit Facility $0 Debentures 3.873% due Nov/
Slide 17: Credit Metrics Summary
CREDIT METRICS SUMMARY • The following table was sourced from DBRS’ North American Real Estate Peer Comparison dated April 2021. DBRS North American Real Estate Peer Comparison1: Peer Group Granite Rank Granite2 Average Among Peer Group Total Debt to Capital Total 33.0% 49.2% #3 Debt to EBITDA Cash
Slide 18: Financial Flexibility & Target Long-Term Leverage Ratio
FINANCIAL FLEXIBILITY & TARGET LONG-TERM LEVERAGE RATIO • Strong balance sheet provides pathway for measured growth with potential for further diversification and optimization of the portfolio • Target long term net leverage ratio of ∼30 - 35% while maintaining patient and opportunistic approach to
Slide 19: Canadian Real Estate Debt Comparison
CANADIAN REAL ESTATE DEBT COMPARISON1 Total Debt-to-Capital Total Debt-to-EBITDA 90% 19.0x 80% 17.0x 70% 15.0x 13.0x 60% 11.0x 50% 9.0x 40% 7.0x 30% 5.0x 20% 3.0x 10% 1.0x Granite has the lowest leverage within DBRS1 universe of Canadian Real Estate entities 1 Source: DBRS North American Real Estate
Slide 20: Canadian Real Estate Debt Comparison
CANADIAN REAL ESTATE DEBT COMPARISON1 EBITDA Interest Coverage Distributions/Cash Flow from Operations2 8.0x 1.40 7.0x 1.20 6.0x 1.00 5.0x 0.80 4.0x 0.60 3.0x 2.0x 0.40 1.0x 0.20 0.0x 0.00 Granite has leading cash flow coverage metrics among DBRS1 universe of Canadian Real Estate entities 1 Source:
Slide 21: Leadership Team
LEADERSHIP TEAM Kevan Gorrie Teresa Neto • President and Chief Executive Officer • Chief Financial Officer • Over 20 years of real estate experience in Canada, • Over 30 years of varied business experience, the United States and Germany. including ∼10 years as a CFO for publicly-traded • Previously
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