Smartcentres Real Estate Investment Trust · TSX:SRU.UN
Smartcentres Real Estate Investment Trust — Investor Presentation (June 2019)
94 slides from Smartcentres Real Estate Investment Trust's investor presentation, June 2019
Slide 1: Infinite Possibilities - Investor Presentation Q1 2019
INFINITE POSSIBILITIES… INVESTOR PRESENTATION Q1 2019
Slide 2: Notice to Reader
NOTICE TO READER Readers are cautioned that certain terms used in this Investor Presentation (“Presentation”) such as Funds from Operations ("FFO"), Adjusted Cashflow from Operations ("ACFO"), "Gross Book Value", "Payout Ratio", "Interest Coverage", "Total Debt to Adjusted EBITDA" and any related pe
Slide 3: Contents
CONTENTS ▪ Overview ▪ Intensification ▪ Development ▪ Retail Portfolio ▪ Financial Highlights ▪ Summary SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 3
Slide 4: Our Evolution Continues…
OVERVIEW OUR EVOLUTION CONTINUES… 1989-1994 1999 2003 2015 MITCHELL GOLDHAR WALMART FIRST CALLOWAY REIT BRINGS WALMART JOINT VENTURE TRANSACTION ACQUIRES TO CANADA WITH WITH SMARTCENTRES SMARTCENTRES CALLOWAY REIT AND REBRANDS AS SMARTCENTRES REAL EST AT E I NVEST MENT T RUST SMARTCENTRES REIT Q1 20
Slide 5: Our Evolution Continues…
OVERVIEW OUR EVOLUTION CONTINUES… 2018 SMARTCENTRES CREATES JV PARTNERSHIPS & MORE TO COME… SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 5
Slide 6: On Our Journey of Infinite Possibilities
OVERVIEW ON OUR JOURNEY OF INFINITE POSSIBILITIES 76+ property intensification opportunities identified 168+ development projects in progress 34.4M SF income producing retail portfolio $9.6B dynamic real estate portfolio value SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 6
Slide 7: Of Our 157 Properties Identified as Intensification Opportunities
INTENSIFICATION 76 OF OUR 157 PROPERTIES HAVE BEEN IDENTIFIED AS INTENSIFICATION OPPORTUNITIES TO DATE MARKED FOR UNDER REVIEW FOR INTENSIFICATION INTENSIFICATION SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 7
Slide 8: Properties by Province
INTENSIFICATION PROPERTIES BY PROVINCE BRITISH COLUMBIA ALBERTA SASKATCHEWAN MANITOBA ONTARIO QUEBEC ATLANTIC TOTAL MARKED FOR INTENSIFICATION 6 2 2 1 47 18 0 76 UNDER REVIEW FOR INTENSIFICATION 8 5 3 2 48 5 10 81 TOTAL PROPERTIES 14 7 5 3 95 23 10 157 SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION
Slide 9: Ability to Execute
INTENSIFICATION ABILITY TO EXECUTE STRONG, GOVERNMENT/ JOINT VENTURE STABLE OPERATING EXPERIENCED CONSULTANT PARTNER RESULTS AND SOLID IN-HOUSE RELATIONSHIPS RELATIONSHIPS FOUNDATION DEVELOPMENT TEAM SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 9
Slide 10: Select Initiatives
SELECT INITIATIVES 1. VAUGHAN METROPOLITAN CENTRE (VMC), TORONTO | 105 ACRES 2. VAUGHAN NORTH WEST, TORONTO | 42 ACRES 3. 1900 EGLINTON AVENUE EAST, TORONTO | 28 ACRES 4. OAKVILLE NORTH, TORONTO | 52 ACRES 5. SOUTH OAKVILLE, TORONTO | 21 ACRES 6. WESTSIDE MALL, TORONTO | 12 ACRES 7. STUDIO CENTRE, T
Slide 11: We Are Redefining Downtown Vaughan
WE ARE REDEFINING DOWNTOWN VAUGHAN FUTURE FUTURE VMC HIGHWAY 7 WOODBRIDGE VAUGHAN VAUGHAN METROPOLITAN CENTRE | WESTRIDGE | 400& 7 170+ ACRES. 26+ MILLION SF. OF POTENTIAL (REIT SHARE 10.5 MILLION) HIGHWAY 407 SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 11
Slide 12: Vaughan Metropolitan Centre (VMC), Toronto
VAUGHAN METROPOLITAN CENTRE (VMC), TORONTO ▪ A long term build (10 – 15 years) ▪ A 50:50 JV between SmartCentres and Penguin Properties. Mitchell Goldhar intimately involved in all aspects of the project ▪ Potential density of 18M – 19M sf. of residential, office and retail development for the whole
Slide 13: VMC Initial Conditions
VMC INITIAL CONDITIONS 2016 SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 13
Slide 14: VMC Transit Overview
VMC TRANSIT OVERVIEW SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 14
Slide 15: VMC 100-Acre Master Plan
VMC 100-ACRE MASTER PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 15
Slide 16: VMC 100-Acres in Context
VMC 100-ACRES IN CONTEXT COMPARATIVE OVERLAY VMC VS DOWNTOWN TORONTO SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 16
Slide 17: VMC Vision Becoming Reality
VMC VISION BECOMING REALITY SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 17
Slide 18: VMC Office Towers
VMC OFFICE TOWERS KPMG Tower ▪ 365,000 sf. of LEED Gold space, opened in 2016 ▪ 300,000 sf. of office space 100% leased ▪ 16th Annual Real Estate Excellence (REX) Award for Office Development of the Year for the GTA PwC-YMCA Tower ▪ Second mixed-use tower under construction ▪ YMCA, Library and commu
Slide 19: VMC - KPMG Tower
VMC - KPMG TOWER RENDERING REALITY 100% LEASED SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 19
Slide 20: VMC - PwC/YMCA Mixed-Use
VMC - PWC/YMCA MIXED-USE RENDERING REALITY 100% LEASED SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 20
Slide 21: Next Up…
NEXT UP… RENDERING OF OUR NEXT OFFICE TOWER SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 21
Slide 22: VMC Residential – Phase 1
VMC RESIDENTIAL – PHASE 1 ▪ First residential development is a JV with CentreCourt Developments, an experienced GTA- based condominium developer ▪ Initial plan was for a 55 story condominium tower with over 500 suites, anchored by a BUCA- branded restaurant and BAR BUCA, together with an associated
Slide 23: VMC - Transit City 1, 2 & 3
VMC -TRANSIT CITY 1, 2 & 3 RENDERING REALITY SOLD OUT SMARTCENTRES REIT Q1 2019 INVESTORS PRESENTATION 23
Slide 24: VMC Residential – Phase 2
VMC RESIDENTIAL – PHASE 2 The East Block is the North East parcel of our VMC land. It will be comprised of: TRANSIT CITY CONDOS ▪ 2 additional Transit City towers, TC4 (45 floors) and TC5 (50 floors), in partnership with CentreCourt ▪ TC4 and TC5 went to market April 2019 and all 1,000+ units were s
Slide 25: Vaughan Northwest, Toronto
VAUGHAN NORTHWEST TORONTO ▪ Existing Walmart anchored shopping centre at Major Mackenzie Drive and Weston Road in Vaughan ▪ JV with Fieldgate on 16-acre site for 230-300 freehold townhomes to be built, construction to commence in 2020 and possession to occur in 2021 and into 2022 ▪ JV with SmartStop
Slide 26: Vaughan Northwest, Toronto
VAUGHAN NORTHWEST TORONTO CURRENT SMARTCENTRES REIT Mixed-Use inc.Seniors Townhouses with Vaughan Northwest Self Storage with Q1 2019 INVESTOR PRESENTATION Homes with Revera Fieldgate Retail SmartStop 26
Slide 27: Vaughan Northwest, Toronto - Plan
VAUGHAN NORTHWEST TORONTO PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 27
Slide 28: 1900 Eglinton Ave East, Toronto
INTENSIFICATION 1900 EGLINTON AVE EAST TORONTO ▪ Existing 380,000 square foot shopping centre on approximately 28 acres at Eglinton Avenue East and Warden Avenue in Toronto ▪ Anchored by a 214,000 ft. Walmart Supercentre and a 40,000 sf. Winners ▪ Situated on the Eglinton Crosstown light rail transi
Slide 29: 1900 Eglinton Ave East - Current
1900 EGLINTON AVE EAST TORONTO CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 29
Slide 30: SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION
SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 30
Slide 31: 1900 Eglinton Ave East - Plan
1900 EGLINTON AVE EAST TORONTO PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 31
Slide 32: Oakville North (Dundas & Trafalgar), Toronto
OAKVILLE NORTH (DUNDAS & TRAFALGAR) TORONTO ▪ An existing 461,000 sf. shopping centre on 52 acres at Highway 5 and Trafalgar Road in Oakville. Anchored by a 195,000 sf. Walmart Supercentre and a 120,000 sf. Real Canadian Superstore ▪ Located within the Uptown Core area in the Town of Oakville, inten
Slide 33: Oakville North - Current
OAKVILLE NORTH TORONTO CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 33
Slide 34: Oakville North - Plan
OAKVILLE NORTH TORONTO PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 34
Slide 35: South Oakville, Toronto
SOUTH OAKVILLE TORONTO We have initiated discussions with municipalities, tenants and potential partners to evolve this site into: ▪ 180,000 sf. shopping centre, anchored by strong retailers such as Metro food store, Shoppers Drug Mart, LCBO, Winners and Goodlife Fitness ▪ JV for a Revera seniors re
Slide 36: South Oakville - Current
SOUTH OAKVILLE TORONTO CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 36
Slide 37: South Oakville - Plan
SOUTH OAKVILLE TORONTO PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 37
Slide 38: Westside Mall, Toronto
WESTSIDE MALL TORONTO ▪ 12-acre urban redevelopment site. Currently a 140,000 square foot shopping centre ▪ New Light Rapid Transit (LRT) station as part of Eglinton Cross Town system to open on site ▪ New links to existing GO network will link new East:West to existing North:South transit framework
Slide 39: Westside Mall - Current
WESTSIDE MALL TORONTO CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 39
Slide 40: SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION
SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 40
Slide 41: Westside Mall - Plan
WESTSIDE MALL TORONTO PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 41
Slide 42: Studio Centre, Toronto
STUDIO CENTRE TORONTO ▪ Located next to Toronto’s eastern waterfront ▪ A former industrial site, today it is a well- utilized film production centre ▪ SmartCentres and Penguin Properties intend to revitalize the centre, adding new film production, office, and retail opportunities ▪ Rezoning has crea
Slide 43: Studio Centre, Toronto
STUDIO CENTRE TORONTO ▪ 3 km from the CN Tower ▪ 4 km from the Toronto Island Airport (YTZ) SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 43
Slide 44: Premium Outlets
PREMIUM OUTLETS Joint Venture with Simon Property Group TORONTO PREMIUM OUTLETS ▪ 500,000 sf. when fully completed ▪ Phase I opened Aug. 1, 2013 ▪ Phase II – New parking facility opened Nov. 2017 and Phase II opened Nov. 2018 ▪ Stabilized double digit yield PREMIUM OUTLETS MONTREAL ▪ Phase I – 350,0
Slide 45: Toronto Premium Outlets
TORONTO PREMIUM OULETS 144,000 SQUARE FOOT EXPANSION CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 45
Slide 46: SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION
SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 46
Slide 47: Premium Outlets Montreal
PREMIUM OUTLETS MONTREAL 52 ACRE SHOPPING CENTRE + 75 ACRES OF ADJACENT LANDS CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 47
Slide 48: Laval Centre, Montreal
LAVAL CENTRE MONTREAL ▪ Lands designated by City as “Centre-Ville”, due to highway and transit access ▪ 43 acre site anchored by a 160,000 square foot Walmart Supercentre ▪ Parcels of land sold to others for seniors housing, hotel and office development of 400,000 sf. ▪ JV for 290,000 sf. of rental
Slide 49: Laval Centre - Current
LAVAL CENTRE MONTREAL CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 49
Slide 50: Laval Centre - Plan
LAVAL CENTRE MONTREAL PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 50
Slide 51: Laval Centre - Equinoxe Daniel-Johnson Apartment
LAVAL CENTRE MONTREAL EQUINOXE DANIEL-JOHNSON APARTMENT RENDERING REALITY SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 51
Slide 52: Pointe-Claire, Montreal
POINTE-CLAIRE MONTREAL ▪ Walmart and Home Depot anchored site in West Montreal purchased in 2016 ▪ Very well-located site – transit (new light rail transit line to downtown) and road access ▪ Master planning activities moving forward with strong support from council ▪ Secured zoning for a multitude
Slide 53: Pointe-Claire - Current
POINTE-CLAIRE MONTREAL CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 53
Slide 54: Pointe-Claire - Plan
POINTE-CLAIRE MONTREAL PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 54
Slide 55: Chilliwack Mall, Vancouver
CHILLIWACK MALL VANCOUVER ▪ Official Community Plan and Rezoning Applications submitted to the City of Chilliwack April 2019 ▪ Proposal includes demolition of the current enclosed mall to accommodate: • 162,798 sf of Commercial • 2.63 acres of Residential • 3 6-storey residential towers with 200+ un
Slide 56: Chilliwack Mall - Current
CHILLIWACK MALL VANCOUVER CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 56
Slide 57: Chilliwack Mall - Plan
CHILLIWACK MALL VANCOUVER PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 57
Slide 58: Chilliwack Mall - Plan
CHILLIWACK MALL VANCOUVER PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 58
Slide 59: Bradford, Toronto
BRADFORD TORONTO ▪ 57 acre Walmart-anchored site in the growing community of Bradford ▪ Currently a 280,000 sf shopping centre. Potential for 425,00 sf. ▪ Preliminary intensification plans include a hotel, a seniors residence, town homes, and mid-rise residential apartments and/or condominiums ▪ Ear
Slide 60: Bradford - Current
BRADFORD TORONTO CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 60
Slide 61: Bradford - Plan
BRADFORD BRADFORD TORONTO PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 61
Slide 62: Development Projects
DEVELOPMENT + 168 RECURRING NON-RECURRING DEVELOPMENT PROJECTS 33 49 86+ UNDERWAY ACTIVE FUTURE RECURRING NON-RETAIL SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 62
Slide 63: Recurring Non-Retail
DEVELOPMENT + 124 RECURRING NON-RETAIL APARTMENT RENTALS (38+) SENIORS RESIDENCES (45+) 25 36 63+ UNDERWAY ACTIVE FUTURE SMARTCENTRES REIT OFFICE (3) SELF-STORAGE (38+) Q1 2019 INVESTOR PRESENTATION 63
Slide 64: Recurring Non-Recurring Development
DEVELOPMENT + 44 RECURRING NON-RECURRING 8 13 23+ CONDOMINIUMS (29+) & TOWNHOUSES (15+) UNDERWAY ACTIVE FUTURE SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 64
Slide 65: Major Mixed-Use Real Estate Initiatives
DEVELOPMENT MAJOR MIXED-USE REAL ESTATE INITIATIVES Estimated Costs ($M) Estimated Gain on Final Sale GLA Completion SRU 100% Site Project Type ('000sf) / Year % Share Share SRU Share Yield Profit % SRU Share Timing Units 1. VMC (Office Towers) a. KPMG (T#1) Office 360sf 2016 50% $180 $90.0 5.7% — —
Slide 66: Major Mixed-Use Real Estate Initiatives
DEVELOPMENT MAJOR MIXED-USE REAL ESTATE INITIATIVES Estimated Costs ($M) Estimated Gain on Final Sale GLA Completion SRU 100% Site Project Type ('000sf) / Year % Share Share SRU Share Yield Profit % SRU Share Timing Units 10. StudioCentre (Toronto) SRU-Penguin JV Mixed-Use 150sf 2022-2023 50% $53 $2
Slide 67: In-House Development-Related Resources
DEVELOPMENT PLANNERS / CONSTRUCTION DEVELOPERS 151 IN-HOUSE DEVELOPMENT-RELATED RESOURCES ENGINEERS GOVERNMENT RELATIONS ENVIRONMENTAL / GEOTECH SPECIALISTS LEASING ARCHITECTS LAWYERS FINANCE / FINANCIAL ANALYSTS MARKETING SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 67
Slide 68: Strong Strategic Relationships
DEVELOPMENT STRONG STRATEGIC RELATIONSHIPS SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 68
Slide 69: Walmart Canada Partnership
WALMART CANADA PARTNERSHIP 115 WALMART ANCHORED SHOPPING CENTRES 25 YEARS IN CANADA SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 69
Slide 70: Walmart Canada Partnership
DEVELOPMENT WALMART CANADA PARTNERSHIP NUMBER OF ▪ Walmart Canada Attributes WALMART STORES • Value pricing and fresh food generates IN CANADA huge traffic • Customer traffic and food market share increasing 227 296 • Benefiting from the closure of Target and Sears – little competition in the discou
Slide 71: Mitchell Goldhar Partnership
DEVELOPMENT MITCHELL GOLDHAR PARTNERSHIP ▪ JV Partner • Vaughan Metropolitan Centre • StudioCentre / Eastern Avenue • Salmon Arm SmartCentre ▪ Consultant on development and mixed- use projects ▪ Executive Chairman, Trustee and Investment Committee member SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATI
Slide 72: Simon Property Group Partnership
DEVELOPMENT SIMON PROPERTY GROUP PARTNERSHIP ▪ Largest public real estate company in the U.S. ▪ Engaged primarily in retail real estate properties including regional malls, Premium Outlets and The Mills® ▪ Exceptional relationships with the world’s largest retailers provides strong tenant base for P
Slide 73: CentreCourt Partnership
DEVELOPMENT CENTRECOURT PARTNERSHIP ▪ Partner for 5 sold-out Transit City condominium towers at VMC • GTA focused: • 2,000 units completed • 4,000 units under active construction ▪ Initial discussions for other projects SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 73
Slide 74: Revera Partnership
DEVELOPMENT REVERA PARTNERSHIP PARTNERSHIP ▪ Leading owner, operator and investor in the senior living sector through various partnerships own over 500 properties in Canada, the United States, and the United Kingdom serving over 55,000 seniors ▪ Joint venture with Revera, first 3 sites announced – 2
Slide 75: SmartStop Partnership
DEVELOPMENT SMARTSTOP PARTNERSHIP ▪ Diversified real estate company focused on self-storage, student and senior housing. Portfolio currently includes 80,000 self storage units, 9.4M rentable square feet, and $1.8B of real estate assets under management. Buildings on average 100,000 to 130,000 sf. ▪
Slide 76: Jadco Partnership
DEVELOPMENT JADCO PARTNERSHIP ▪ Well reputed family-owned business ▪ Has gained a strong foothold in the residential sector in the Greater Montreal Area ▪ Strengths lie in its commitment to excellence in building exceptional living and mixed-used environments ▪ Diversified portfolio comprised of lux
Slide 77: Fieldgate Homes Partnership
DEVELOPMENT FIELDGATE HOMES PARTNERSHIP ▪ Private company in residential development business for more than 60 years ▪ Primarily focused on GTA ▪ Over 12,000 homes built SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 77
Slide 78: Penguin PickUp Partnership
DEVELOPMENT PENGUIN PICKUP PARTNERSHIP ▪ Through this partnership, we are the only omnichannel landlord ▪ Penguin PickUp enables retailers and brands to access customers in highly dense areas where real-estate and logistics are a challenge ▪ Over 100 locations across Canada, and rapidly expanding SM
Slide 79: Retail Portfolio: 34.4M SF
RETAIL PORTFOLIO SF 34.4M INCOME-PRODUCING PORTFOLIO WITH INDUSTRY-LEADING OCCUPANCY 100% 15 YEARS 98% OF SITES CONTAIN A AVERAGE AGE AVERAGE GROCERY/PHARMACY OF PROPERTIES OCCUPANCY SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 79
Slide 80: The Canadian Retail Landscape Is Unique
RETAIL PORTFOLIO THE CANADIAN RETAIL LANDSCAPE IS UNIQUE ✓ VALUE-ORIENTED CONSUMERS ✓ STRONG DISCOUNT & LUXURY SEGMENTS ✓ RATIONALIZED DEPARTMENT STORES ✓ LESS RETAIL PER PERSON ✓ LOWER E-COMMERCE PENETRATION SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 80
Slide 81: Our Market Diversity Is a Strength
RETAIL PORTFOLIO OUR MARKET DIVERSITY IS A STRENGTH CENTRES NOI OCCUPANCY # % % PRIMARY 100 72 97.8 LARGE SECONDARY 34 18 98.2 MEDIUM SECONDARY 23 10 99.0 TOTAL 157 100 98.0 SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 81
Slide 82: We Have Stable High-Quality Tenants
RETAIL PORTFOLIO TOP TEN TENANTS: WE HAVE STABLE 1. HIGH-QUALITY TENANTS 2. 3. 4. 5. RENTAL INCOME 6. 48% 75% 7. FROM TOP 10 FROM TOP 25 TENANTS TENANTS 8. 9. 10. SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 82
Slide 83: … and Continued Retail Expansion
RETAIL PORTFOLIO EXPANDING TENANTS: … AND CONTINUED RETAIL EXPANSION SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 83
Slide 84: While Continuously Upgrading Our Services
RETAIL PORTFOLIO WHILE CONTINUOUSLY UPGRADING OUR SERVICES ELECTRIC CAR PENGUIN PICKUP CHARGING STATIONS DIGITAL SIGNS BUILDING SYSTEMS WIFI NETWORKS MOBILE ADVERTISING SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 84
Slide 85: Total Returns to Unit Holders Continue to Grow
FINANCIAL HIGHLIGHTS TOTAL RETURNS TO UNIT HOLDERS CONTINUE TO GROW $1,200 15.4% AVERAGE ANNUAL RETURN SINCE IPO (as of May 31, 2019) $1,071.28 $1,000 $800 $600 $544.10 $400 $394.95 $200 $0 SmartCentres TSX Capped REIT TSX Composite SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 85
Slide 86: Continued Growth in Rental Revenue & FFO per Unit
FINANCIAL HIGHLIGHTS CONTINUED GROWTH IN RENTAL REVENUE & FFO PER UNIT (AS OF DECEMBER 31, 2018) RENTAL REVENUE FFO (in millions of $) ($ per unit) 6.8% CAGR 4.0% CAGR since 2014 since 2014 2.28 790 2.17 2.20 747 2.10 728 1.95 670 608 2014 2015 2016 2017 2018 2014 2015 2016* 2017 2018 SMARTCENTRES R
Slide 87: Total Assets Valued at $9.6B
FINANCIAL HIGHLIGHTS TOTAL ASSETS VALUED AT $9.6B TOTAL ASSETS (in billions of $) 31.8% CAGR 9.5 9.6 since 2002 9.4 8.5 8.7 7.1 7.1 6.5 6.0 4.2 4.2 4.4 3.6 3.9 2.6 1.0 0.1 0.2 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2019 SMARTCENTRES REIT Q1 2019 INVES
Slide 88: Balance Sheet Supports Extensive Asset Growth
FINANCIAL HIGHLIGHTS BALANCE SHEET SUPPORTS EXTENSIVE ASSET GROWTH ▪ Unencumbered pool at $4.5B = flexibility ▪ Ready access to mortgage and unsecured debt capital when needed = strong liquidity ▪ Payout ratio to ACFO with one-time adjustment at 91.4% as of March 31, 2019 ▪ Current interest rates st
Slide 89: Debt / Maturity Leverage
FINANCIAL HIGHLIGHTS DEBT / MATURITY LEVERAGE DEBT MATURITY (in millions of $) 400 371 350 320 300 300 275 250 250 250 203 200 200 180 160 140 119 100 87 100 80 45 3 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 BEYOND Secured Debt Bank Loans Unsecured Debentures ▪ Interest costs on refinancin
Slide 90: SmartCentres Has a Stable Retail Income Base…
FINANCIAL HIGHLIGHTS SMARTCENTRES HAS A STABLE RETAIL INCOME BASE… LEASE MATURITY BY AREA (in millions of square feet) Average roll of 2.3M sf. annually (6.8% of total GLA per year) 1.6 1.7 2.3 1.6 1.9 0.9 0.6 0.8 0.7 0.7 0.8 0.4 0.7 0.7 0.6 1.9 2.0 1.4 1.4 0.2 0.2 1.1 0.5 1.2 0.7 0.7 0.6 0.5 0.8 -
Slide 91: Leverage Profile
FINANCIAL HIGHLIGHTS LEVERAGE PROFILE Mar. 31 Dec. 31 Dec. 31 Dec. 31 2019 2018 2017 2016 Debt to Aggregate Assets 42.2%(1) 43.9% 45.4%(2) 44.3% Secured Debt to Aggregate Assets 20.0% 23.1% 26.1% 29.5% Unencumbered Assets $4.5B $4.3B $3.4B $2.7B Debt to Adjusted EBITDA 8.0X 8.2X 8.4X 8.4X Interest C
Slide 92: Conservative Capital Structure
FINANCIAL HIGHLIGHTS CONSERVATIVE CAPITAL STRUCTURE Secured Mortgage Financing 19.4% Amount - $1.9B Weighted Avg Interest Rate – 4.07% $9.8B Weighted Avg Term to Maturity – 4.6 years Total Enterprise Value Unsecured Debentures 19.0% Amount - $1.9B Weighted Avg Interest Rate – 3.29% Focused on: Weigh
Slide 93: Stable Cashflow
FINANCIAL HIGHLIGHTS STABLE CASHFLOW PAYOUT RATIO TO 83.1% 81.8% 83.0% ACFO WITH ONE-TIME ADJUSTMENT 2014 2015 2016 2017 2018 ($ per unit) FFO(1) 1.95 2.10 2.17(3) 2.23 2.28 ACFO(2) NP NP 2.00(3) 2.10 2.13 Distributions 1.56 1.61 1.66 1.71 1.76 (1) FFO with one-time adjustment and before Transaction
Slide 94: Growth Strategy
SUMMARY GROWTH STRATEGY 168 + APARTMENT RENTALS (38+) SENIORS RESIDENCES (45+) DEVELOPMENT PROJECTS ACROSS 76 + OFFICE (3) SELF-STORAGE (38+) PROPERTIES SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 94 CONDOMINIUMS (29+) TOWNHOUSES (15+)
SmartCentres Real Estate Investment Trust — Investor Presentation (June 2019) on 6ix