Riocan Real Estate Investment Trust · TSX:REI.UN
Riocan Real Estate Investment Trust — Q4 2018 Earnings Presentation
20 slides from Riocan Real Estate Investment Trust's earnings presentation, Feb 12, 2019
Slide 1: Q4 2018 Conference Call Presentation
Q4 2018 Conference Call Presentation February 12, 2019
Slide 2: Forward Looking Advisory & Non-GAAP Measures
FORWARD LOOKING ADIVISORY & NON-GAAP MEASURES FORWARD LOOKING INFORMATION Certain information included in this presentation contains forward-looking statements within the meaning of applicable securities laws including, among others, statements concerning our objectives, our strategies to achieve th
Slide 3: Funds From Operations (FFO) & Payout Ratio
FUNDS FROM OPERATIONS (“FFO”) & PAYOUT RATIO • FFO/unit increased $0.06 or 3.3% from 2017 to 2018 despite: o Nearly $1.0B asset sales in 2018 o $7.5M in severance costs • FFO/unit growth of 4.7% from 2017 to 2018 excluding severance costs • FFO/unit growth of 9.9% since 2016 FFO per Unit FFO Payout
Slide 4: Operational Highlights
OPERATIONAL HIGHLIGHTS SPNOI Growth Total Portfolio Major Markets 2.6% 2.1% 2.2% 2.2% 2017 2018 2017 2018 Committed Occupancy Total Portfolio Major Markets 97.6% 97.7% 97.1% 96.6% 2017 2018 2017 2018 Q4 | RioCan | 03
Slide 5: Acceleration of Major Market Strategy
ACCELERATION OF MAJOR MARKET STRATEGY Disposition Progress as of December 31, 2018 • Sale prices to-date are materially in line with IFRS value Transaction type Value (M) • $1.5B progress since the October 2017 announcement Closed and Firm $1,265 represents approximately 73% of the $2.0B disposition
Slide 6: High-Performance Portfolio
HIGH-PERFORMANCE PORTFOLIO High occupancy and strong net rent growth (8-year average net rent CAGR ─ 3.2%) 100.0% $20.00 Average Net Rent Per Square Foot (PSF) $19.07 $19.00 97.5% $17.75 97.3% 97.2% 97.0% $17.59 97.1% 96.9% Committed Occupancy 96.6% $18.00 95.6% $17.11 95.0% $16.63 $16.69 $17.00 94.
Slide 7: Development Progressing Well
DEVELOPMENT PROGESSING DEVELOPMENT WELL PROGRESSING WELL 491 College St. W. - Completed King Portland Centre - Completed Key Statistics (2018) Development on the Balance Sheet $ 1.2B Development as a % of Total Assets 8.5% (Max permitted 15%) Development Completions: - NLA Completed (in SF) 799,000
Slide 8: Development Yield and Value Creation
DEVELOPMENT YIELD AND VALUE CREATION • Estimates of development yield and value creation are as follows for five urban intensification and greenfield development projects that are complete or close to completion: Ownership Estimated Total Estimated Total Estimated Estimated Estimated Yield Estimated
Slide 9: Funding Development
FUNDING DEVELOPMENT • RioCan is committed to self-funding its development program and maintaining a strong balance sheet As at Target Dec 31, 2018 Properties Under Development (“PUD”) & Residential Inventory $1.2B N/A PUD and Residential Inventory as % of Gross Assets – Per Line of 8.5% ~ 10%1 Credi
Slide 10: Strong Balance Sheet
STRONG BALANCE SHEET PRUDENT CAPITAL MANAGEMENT & FLEXIBLE CAPITAL STRUCTURE Capital Structure Metrics Target 20181 Debt to Adjusted EBITDA <8.0x 7.88x Debt to Total Assets 38% - 42% 42.1% Interest Coverage >3.0x 3.63x Debt Service Coverage >2.25x 3.05x Fixed Coverage CONSISTENTLY ABOVE 95% >1.10x 1
Slide 11: Key Metrics in Canada's Six Major Markets
KEY METRICS IN CANADA’S SIX MAJOR MARKETS 171 assets 1 85.4% of 2.6% 97.7% committed 11M+ SF zoned 29.8M SF annualized revenue SPNOI growth occupancy for development 35 assets 4.8M SF 12 assets 20 assets 1.7M SF 3.0M SF Edmonton 7 assets Calgary 1.8M SF Vancouver Ottawa Montreal 14 assets Toronto 83
Slide 12: Burlington Centre - Redevelopment Completion
BURLINGTON CENTRE - REDEVELOPMENT COMPLETION Q4 | RioCan | 11
Slide 13: Strategic Redevelopment
STRATEGIC REDEVELOPMENT Lawrence Square, Toronto ON Yonge Sheppard Centre, Toronto ON Q4 | RioCan | 12
Slide 14: The Ability to Unlock Intrinsic Value
THE ABILITY TO UNLOCK INTRINSIC VALUE Deep executive bench Long track record of Uniquely integrated to Proven balance of operating one of the largest driving success and value, drive the highest returns and calculated risk-taking and longest-running resulting in respect, trust best use of every prop
Slide 15: Successfully Delivering Development Projects
SUCESSFULLY DELIVERING DEVELOPMENT PROJECTS Q4 | RioCan | 14
Slide 16: Successfully Delivering – Frontier Phase I, Ottawa, ON
SUCESSFULLY DELIVERING – FRONTIER PHASE I, OTTAWA, ON Gloucester Silver City, Ottawa, ON Frontier Phase I Frontier Phase I Frontier Phases I-IV Q4 | RioCan | 15
Slide 17: Transforming Toronto's West Side – The Well
TRANSFORMING TORONTO’S WEST SIDE – THE WELL Proposed Q4 | RioCan | 16
Slide 18: Successfully Executing and Delivering Results
SUCESSFULLY EXECUTING AND DELIVERING RESULTS KEY DIFFERENTIATORS STRATEGIC PRIORITIES CONCENTRATE WITHIN MAJOR MARKETS Strengthen Canada’s leading major market portfolio by focusing on properties within fast-growing, high-population and high-income areas in order to achieve higher occupancy and rent
Slide 19: CEO Comments
CEO COMMENTS Edward Sonshine, O.Ont., Q.C. Chief Executive Officer Q4 | RioCan | 18
Slide 20: Contact Information
Edward Sonshine, O.Ont., Q.C. Chief Executive Officer Jonathan Gitlin Chief Operating Officer Qi Tang Senior Vice President & Chief Financial Officer Contact Information RioCan Yonge Eglinton Centre 2300 Yonge Street P.O. Box 2386 Toronto, ON M4P 1E4 (T) 1-800-465-2733 or (416) 866-3033 Q4 | RioCan
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