European Residential Real Estate Invt Tr
European Residential Real Estate Invt Tr — European Residential Real Estate Investment Trust — Q1 2023 Earnings Presentation
17 slides from European Residential Real Estate Invt Tr's earnings presentation, May 11, 2023
Slide 1: Canada's only European-focused multi-residential REIT
Canada’s only European-focused multi-residential REIT First Quarter 2023 Conference Call 1 | FOURTH QUARTER CONFERENCE CALL
Slide 2: 2 | FIRST QUARTER CONFERENCE CALL
2 | FIRST QUARTER CONFERENCE CALL
Slide 3: Disclaimer
Disclaimer Certain statements contained in this presentation constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to European Residential Real Estate Investment Trust (“ERES”) or Canadian Apartment Properties Real Estate Investment Trus
Slide 4: Presenters
Presenters • President, CEO and Trustee, CAPREIT Mark Kenney • CAPREIT since 1998 CEO and Trustee • Director on Board of REALPAC • Former Board member & Chair of the Fed. of Rental Housing Providers of Ontario • Former founding Board member of the Greater Toronto Apartment Association • Vice Preside
Slide 5: Dynamic Growth-Oriented Real Estate Investment Trust
Dynamic Growth-Oriented Real Estate Investment Trust € 2.0 March 29, 2019 Creation of European Residential REIT 6,901 6,900 6,900 6,545 6,047 6,184 € 1.5 5,632 5,632 Number of Suites EUR €B 3,859 € 1.0 3,347 2,091 2,091 € 0.5 568 568 Multi-Family € 0.0 Single-Family H2 '16 H1 '17 H2 '17 H1 '18 H2 '1
Slide 6: Current ERES Overview – First Quarter 2023
Current ERES Overview – First Quarter 2023 Residential Portfolio (95%)1 TSX: ERE.UN March 31, 2023 Properties 158 Annualized Distribution/Unit €0.120 Residential Units 6,900 Distribution Yield 5.4% Occupied Average Monthly Rent €1,002 Forecast AFFO Payout Ratio 80% to 90% Occupancy 98.7% Outstanding
Slide 7: Robust Operational Performance
The long-term housing shortage has resulted in strong Robust Operational Performance demand driving consistent rent increases, even within the continuously changing regulatory framework. 98.7% €1,000 €950 €900 €850 €800 Q2 '19 Q3 '19 Q4 '19 Q1' 20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1
Slide 8: First Quarter Business Update
First Quarter Business Update Business Update • On March 31, 2023, pursuant to the departure of Phillip Burns, Mark Kenney assumed the role of CEO and Trustee of ERES. Mr. Kenney is President, CEO and Trustee of CAPREIT. • On January 24, 2023, the REIT amended and renewed its existing Revolving Cred
Slide 9: Financial Performance
Financial Performance Jenny Chou Chief Financial Officer
Slide 10: First Quarter Financial Results
First Quarter Financial Results Quarter Ended March 31, 2023 2022 %∆ Operating Revenues (000s) €23,380 €21,254 10.0% Net Operating Income (NOI) (000s) €17,850 €16,322 9.4% Net Operating Income Margin1,2 76.3% 76.8% 0.5% Funds From Operations (FFO) €9,244 €9,774 5.4% FFO per Unit (Diluted) €0.040 €0.
Slide 11: Solid Liquidity and Financing Structure
With its healthy and firm financial position, ERES has substantial Solid Liquidity and Financing Structure capacity and coverage to absorb forthcoming volatility. 60% 54% 51% 49% 49% 49% 49% 49% 48% €255 €207 €196 €165 €160 €156 €177 €133 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Avail
Slide 12: Staggered Mortgage Renewal Profile
Staggered 500 Mortgage Renewal Profile Weighted Average 7.00% Mortgage Term of 5.00% 3.2 Years 400 3.29% 3.00% 1.87% 1.77% 1.00% 300 1.39% 1.47% 1.38% 1.08% Mortgage Renewal (€) -1.00% 200 -3.00% -5.00% 227.3 100 187.8 200.9 118.0 -7.00% 61.6 80.9 0 -9.00% 2023 2024 2025 2026 2027 2028 2 Principal R
Slide 13: Closing Remarks
Closing Remarks Mark Kenney Chief Executive Officer 13 | FIRST QUARTER CONFERENCE CALL
Slide 14: Netherlands: Growing Population
2022 Net Migration: 228,000 2022 Natural Growth: (3,000) 210,000 Netherlands: Growing Population The Netherlands is the most densely populated country in Europe, 160,000 and one of the most densely populated countries globally. 110,000 60,000 Forecast Annual Net Migration (2030-2040) = ~55,000 Avera
Slide 15: Netherlands: Constrained Housing Supply
Netherlands: Constrained Housing Supply Target New Residential Construction Per Annum 100,000 75,000 50,000 25,000 - Historical Residential New Construction Forecast Residential New Construction Target Source: Statistics Netherlands (Historical), Capital Value 2023 (Forecast) 15 | FIRST QUARTER CONF
Slide 16: Investment Highlights
Investment 1. Opportunity to invest in unique and growing Canadian-listed European Highlights multi-residential REIT with initial focus on the attractive Netherlands market 2. Strong sponsorship by CAPREIT, Canada’s largest and best-in-class residential landlord 3. Ability to invest at very attracti
Slide 17: Contact Us
CONTACT US European Residential REIT m.kenney@capreit.net 11 Church Street, Suite 401 j.chou@capreit.net Toronto, Ontario M5E 1W1 www.eresreit.com Canada 17 | FOURTH QUARTER CONFERENCE CALL
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