Primaris Real Estate Investment Trust · TSX:PMZ.UN
Primaris Real Estate Investment Trust — Q4 2021 Earnings Presentation
23 slides from Primaris Real Estate Investment Trust's earnings presentation, Mar 7, 2022
Slide 1: Built for the New Retail Landscape
Built for the New Retail Landscape Primaris REIT March 2022
Slide 2: Forward Looking Statements
Forward Looking Statements CAUTION Certain information in this presentation contains forward-looking information within the meaning of applicable securities laws (also known as forward-looking statements) including, among others, statements made or implied relating to Primaris’ future plans, includi
Slide 3: Key Metrics: $3.2B Total Assets, BBB Stable, 11.5M SF
$3.2B 2,400+ BBB Stable 35 Total Assets Tenants Investment Grade Properties Rating 11.5MSF 28.4% 45-50%¹ 5.3x¹ GLA Debt to Total Target FFO Debt to Adjusted Assets Payout Ratio** EBITDA** 1. Based on the total debt balance as of December 31, 2021, and the 2022 forecasted Adjusted EBITDA (see Section
Slide 4: Canadian Enclosed Evolution
A blank slate to design a best- in-class vehicle to take advantage of the recovery in Canadian Enclosed Evolution enclosed shopping centres Expansion Through Euphoria Retail in Transition Pandemic Recovery Retailers conclude Over levered, too bricks & mortar anchors much concentration omnichannel: T
Slide 5: Primaris Strategic Advantage Built for the New Retail Landscape
Demonstrated resiliency Primaris Strategic Advantage through pandemic. Steady organic EBITDA Built for the New Retail Landscape growth expected post pandemic Built to Grow and Thrive Size and Scale Proper Capitalization • $3.2B national portfolio of dominant • Debt to Total Assets: 28.4% enclosed sh
Slide 6: Guided by Skilled Independent Board of Trustees
Tremendous strategic resource: Guided by Skilled Independent experiential retailing, institutional Board of Trustees property brokerage, investment management, REIT operations, financial strategy, public company reporting, retail technology Avtar Bains Louis Forbes Deborah Weinswig • President of Pr
Slide 7: Strong Management Team
Experienced Management Team with Significant Real Estate Investment and Strong Management Team Operations Expertise Led the structuring and strategy of Alex Avery Primaris Spin-off Graham Previous senior roles at Brookfield Chief Executive 20 4 Former H&R REIT board member, EVP, Procter 20 4 Propert
Slide 8: Canadian Consolidation Opportunity
Large opportunity to be the consolidator as institutions contemplate rebalancing, Primaris stands alone as a Canadian Consolidation Opportunity potential buyer Canada’s only enclosed shopping centre REIT • $50 billion of Canadian enclosed shopping centres $50b in Enclosed concentrated to institution
Slide 9: Excess Density and Substantial Intensification Potential
Excess Density and Substantial Flexibility to Develop and Continue to Surface Value or Intensification Potential Monetize to Maintain Strong Balance Sheet Dufferin Grove Development Overview • $600 million intensification and redevelopment of Dufferin Mall’s northernmost parking area • Redevelopment
Slide 10: Investment Proposition
Investment Proposition Implied discount to Net Asset Value** a compelling investment opportunity “Primaris REIT is exceptionally well positioned to participate in the recovery of the Canadian enclosed shopping centre industry, with a differentiated financial model, gold-standard governance, a fully-
Slide 11: Robust Institutional Operating Platform
Fully Internalized, Scalable Platform With Over 300 Employees Across Robust Institutional Operating Platform 3 Regional Offices 26 18 10 17 1 Asset Management Finance & Corporate Leasing Legal Treasury 3 4 10 Development & Human Resources Information Construction Technology 1. Including site personn
Slide 12: Creditworthy Top Tenants
High Quality Roster of Tenants Creditworthy Top Tenants in the Retail Sector Annualized Credit Ratings Annualized Credit Ratings Minimum Store WALT² (S&P / Minimum Store WALT² Tenant¹ Sector Tenant¹ Sector (S&P / Moody’s Rent (% of Count (yrs) Moody’s / Rent (% of Count (yrs) / DBRS) Total) DBRS) To
Slide 13: Strong Large Format Leasing Momentum
Strong Large Format Leasing Year-to-Date Momentum with Positive Leasing Momentum¹ High Quality Tenants TENANTS TOTAL GLA Base Rent psf 53 124,000 $30.36 New CRU³ TENANTS NEW 208,000 Short-term² Renewal 200 383,000 $30.72 11 241,000 RENEWALS New 1,017,000 $20.66 2022 lease ANCHORS⁴ Renewal maturities
Slide 14: Well Positioned for Economic Recovery
Resilience Through Economic Well Positioned for Cycles and is Poised for Post-Pandemic Recovery Economic Recovery Committed Occupancy COVID-19 (excluding HOOPP Properties, 90.7% 91.0% 91.8% 92.1% 90.2% 89.7% 89.4% 90.1% 90.6% 89.1% Northland Village¹) 2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-
Slide 15: Excess Density and Substantial Intensification Potential
Excess Density and Substantial Low Site Coverage Allows for Intensification, Development Intensification Potential and/or Subdivision of Land Primaris’ enclosed mall portfolio comprised of 23 assets nationwide • Situated on approximately 900 acres of land • Located close to major transportation node
Slide 16: Several Properties With Significant Intensification Potential
Several Properties With Excess Density and Substantial Significant Intensification Intensification Potential Potential Place Stone Road Northland Orchard Park Sunridge Mall Sherwood Park Grant Park¹ Kildonan Place¹ D’Orleans¹ Mall Village Winnipeg, MB Kelowna, BC Calgary, AB Sherwood Park, AB Winnip
Slide 17: Omni-Channel and Innovation Strategy
Proprietary e-commerce integration technology Omni-Channel and platform, one-stop destination, integrating the mall, shopper Innovation Strategy and retailer How it works • Primaris is a key piece of retailer tenant omni-channel strategies. • The ‘last mile’ is driving store growth in Primaris’ trad
Slide 18: Highly Differentiated Financial Model
Best-in-class structure built with flexibility, optionality and liquidity, enabling minimized Highly Differentiated Financial Model cost of capital Mortgages 18% 28.4% 5.5x¹ BBB Stable Debt to Total Debt to Adjusted Investment Grade Assets EBITDA** Rating Credit Facilities Total Debt² $3.2 billion 1
Slide 19: Important Note to Financial Statement Users
Enhanced additional disclosure Important Note to to clarity and provide information on the combined Financial Statement Users portfolio results • Financial statements reflect the operating results of approximately 74% of the REIT’s assets by IFRS Fair Value for the 3 months and 12 months ended Decem
Slide 20: Pro forma
Enhanced additional disclosure to clarity and provide information on the combined Pro forma portfolio results For the years ended December 31, Basis of preparation of these pro forma carve-out results for the years ended December 31, 2021 and 2020: 2021 2020 ($ thousands) 1 Primaris Properties: As d
Slide 21: Capital Structure Targets
Designed to provide significant financial flexibility and create a differentiated investment Capital Structure Targets profile among Canadian REITs Sustained long term debt to Adjusted EBITDA** Maintain secured debt to total debt below 40% in the range of approximately 4x – 6x SECURED DEBT Strategy
Slide 22: Invest With Us
Invest With Us TICKER PMZ.UN Internally Managed S&P/TSX Capped REIT Index and Strong Institutional Independent Board S&P/TSX Composite Index member Endorsement IFRS FV of Assets is $3.2 Billion, Providing BBB Stable Investment Exchange: TSX Scale and Trading Grade Credit Rating Liquidity 22
Slide 23: Built for the New Retail Landscape
Built for the New Retail Landscape Primaris REIT March 2022
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