First Capital Real Estate Investment Trust · TSX:FCR.UN
First Capital Real Estate Investment Trust — Q1 2020 Earnings Presentation
70 slides from First Capital Real Estate Investment Trust's earnings presentation, May 2020
Slide 1: Q1 2020 Investor Presentation
Q1 2020 Investor Presentation
Slide 2: Forward-Looking Statements and Non-IFRS Financial Measures
FORWARD-LOOKING STATEMENTS AND NON-IFRS FINANCIAL MEASURES This material may contain forward-looking statements, including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend” and similar expressions to the extent they relate to First Capital REIT (“Fir
Slide 3: Company Snapshot
COMPANY SNAPSHOT (TSX: FCR.UN) One of Canada’s leading, developers, owners and operators of mixed-use urban real estate in Canada’s most densely populated centres 151 Neighbourhoods 23.2m sf Super of gross leasable area (20.7m sf at FCR share) urban $8.0b Market focus across Canada 25.0m sf Total en
Slide 4: COVID-19 Response Plan
COVID-19 RESPONSE PLAN Business Environment Update • All employees working remotely or on a limited, rotational basis at our properties providing essential services • Following all governmental directives to ensure the safety of all stakeholders • Essential tenants open (~50% of gross monthly rent),
Slide 5: COVID-19 Response Plan
COVID-19 RESPONSE PLAN Maintaining a Strong Balance Sheet and Liquidity Position • ~$680m of cash and undrawn credit facilities • Unencumbered properties with an IFRS value of ~$7.0b • Remaining 2020 debt maturities ~$80m • Reducing 2020 development spend and cost by ~$75m • ~$60M reduction in capex
Slide 6: Reopening FCR Properties – Safety Measures to Prevent the Spread
REOPENING FCR PROPERTIES – SAFETY MEASURES TO PREVENT THE SPREAD Provincial Restrictions + Guidelines: Hygiene: hand sanitizer in common Social Distancing: encourage as directed by the Chief Medical areas, enhanced cleaning/disinfection distancing of 2 metres with signs & Officer & Public Health Off
Slide 7: Super Urban Investment Strategy
SUPER URBAN INVESTMENT STRATEGY Creating thriving super urban neighbourhoods that drive sustainable growth in cash flow and capital appreciation of our best in class portfolio • Investing in high-quality, mixed-use properties to build positions in targeted high growth areas • Fully integrating retai
Slide 8: Super Urban Neighbourhoods
SUPER URBAN NEIGHBOURHOODS We define a super urban property based on its proximity to transit, its “Walkability Score”, and most importantly its population density and expect to continue to improve these metrics over time through our investment and disposition activity. >99% Public Transit Of portfo
Slide 9: Super Urban Neighbourhoods
SUPER URBAN NEIGHBOURHOODS 300,000 +20% • Q1 2020 5km population of 293,000 people 293,000 • Up 86,000 or 40% from December 2016 • Making us a leader amongst our +20% 250,000 North American peer group* • Targeting 300,000 people by 2021 207,000 Q4 Q4 Q1 2016 2018 2020 2021 5 KM Population *North Ame
Slide 10: Canada's Super Urban Portfolio
Canada's Super Urban Portfolio First Capital 10
Slide 11: Super Urban Neighbourhoods in Canada's Largest Cities
SUPER URBAN NEIGHBOURHOODS IN CANADA’S LARGEST CITIES Vancouver, Calgary, Western Canada Central Canada Toronto Eastern Canada Montreal, Ottawa Edmonton Properties 44 Properties 65 Properties 42 GLA 6.8m GLA 8.9m GLA 5.0m Fair Value % 31% Fair Value % 53% Fair Value % 16% Edmonton 8% Calgary 12% Van
Slide 12: North American Leader in Population Density
NORTH AMERICAN LEADER IN POPULATION DENSITY FCR Portfolio Demographic Metrics vs. its Peer Group: Q1 2020 * $120,000 US $125,000 293,000 $108,000 154,000 138,000 US Peers ** FCR Q1 **US Peers ***CDN Peers FCR Q1 **US Peers ***CDN Peers 2020 2020 5 KM Population 5 KM Average Household Income As of Ma
Slide 13: Strong Growth in NAV per Share
STRONG GROWTH IN NAV PER SHARE 2015 +5.2% $22.59 $23.39 $22.65 CAGR since Dec 31, 2015 $21.85 $19.53 $18.25 2015 2016 2017 2018 2019 Q1 2020 First Capital 13
Slide 14: Consistently High Performance: Same Property NOI Growth
CONSISTENTLY HIGH PERFORMANCE Total Same Property NOI Growth 4.0% 3.5% 3.3% 2.9% 3.0% 10 Year Average 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 First Capital 14
Slide 15: Consistently High Performance: Lease Renewal Rate Increases
CONSISTENTLY HIGH PERFORMANCE Lease Renewal Rate Increases 12.0% 10.7%* 9.3% 10.0% 10 Year Average 8.0% 6.0% 4.0% 2.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Represents increase on total portfolio basis. Includes all renewals and contractual fixed rate renewals. * The Trust achieved
Slide 16: Premier Portfolio: Highest Rents in Sector
PREMIER PORTFOLIO HIGHEST RENTS IN SECTOR FCR rents are 30% higher than peer group average 3.2% FCR Average rent growth 5 year CAGR $21.51 $19.92 $18.60 Peer Group Average $16.52 $15.53 $14.76 $13.79 1.9% Peer Average rent growth 5 year CAGR Q1 2020 Base Rent *Crombie and Choice are both average exp
Slide 17: Strategic and Diversified Retail Tenant Mix
STRATEGIC AND DIVERSIFIED RETAIL TENANT MIX # of Stores % of Rent Grocery Stores 121 17.0% Medical, Professional & 1,391 15.3% Personal Services Restaurants & Cafes 964 14.4% Pharmacies 121 9.0% Banks & Credit Unions 197 8.3% Fitness Facilities 82 3.6% Liquor Stores 93 3.3% Daycare & Learning 105 1.
Slide 18: Top Retail Tenants
TOP 20 RETAIL TENANTS Contribute 45% of annualized minimum rent (AMR) Investment Investment Rank # Tenant AMR Grade Rank # Tenant AMR Grade 1. 10.2% * 11. 1.4% 2. 5.8% 12. 1.3% 3. 2.9% 13. 1.3% 4. 2.7% 14. 1.2%** 5. 2.5% 15. 1.1% - 6. 2.0% 16. 1.1% 7. 1.8% 17. 1.1% 8. 1.8% - 18. 1.0%*** - 9. 1.7% -
Slide 19: Portfolio Quality Never Higher with $1.4B Investment Activity in 2019
PORTFOLIO QUALITY HAS NEVER BEEN HIGHER WITH $1.4B OF INVESTMENT ACTIVITY IN 2019 2019 5km Average 5km Average $ Amount Population Household Income Acquisitions $392M 535,000 $132,000 Development Spend $166M 389,000 $117,000 Investment Total $558M 484,000 $127,000 Dispositions $835M 138,000 $101,000
Slide 20: Entitlements Program
ENTITLEMENTS PROGRAM • 2019 entitlement applications of 9.0m sf surpassed our goal of 7.5m sf • Once approved, FCR expects to recognize a meaningful increase to the current IFRS value • During 2020, FCR had planned to submit entitlement applications for 4.3m sf. Due to the uncertainty surrounding th
Slide 21: Significant Future Density Pipeline
SIGNIFICANT FUTURE DENSITY PIPELINE Density Pipeline = 25.0m sf • 7.1m sf (28%) in IFRS NAV • 0.6m sf in active development, 6.5m sf at $510m or $78 per sf 9.0m sf of entitlement submissions in 2019 Yonge & Roselawn Toronto, ON Christie Cookie Site Toronto, ON 1071 King St West Toronto, ON Leslie &
Slide 22: Master Planned Super Urban Neighbourhood: Former Christie Cookie Site
Master Planned Super Urban Neighbourhood Future Mixed-Use Neighbourhood Former Christie Cookie Site, Toronto, ON 28 ACRES Demographics 5KM AVG 2019 Estimates Population 269,200 Average Household Income $113,800 First Capital 22
Slide 23: Master Planned Super Urban Neighbourhood: Planned GLA
Master Planned Super Urban Neighbourhood Future Mixed- Use Neighbourhood Former Christie Cookie Site, Toronto, ON Planned Gross Leasable Area (at 100%) Residential GLA ( ~7,500 Units) 6,000,000 sf Retail GLA 500,000 sf Office GLA 500,000 sf Total GLA 7,000,000 sf First Capital ownership 50% 25% of S
Slide 24: Super Urban Neighbourhoods
Super Urban Neighbourhoods 24
Slide 25: Bloor-Yorkville
Super Urban Neighbourhood Bloor-Yorkville Toronto, ON Property Statistics 5KM AVG 2019 Estimates Population 741,100 Average Household Income $132,000 Gross Leasable Area Yorkville Village 315,000 sf One Bloor East 85,000 sf Hazelton Hotel (FCR share) 40,000 sf Total Bloor/Yorkville 440,000 sf Future
Slide 26: Super Urban Neighbourhood - Bloor-Yorkville
SUPER URBAN NEIGHBOURHOOD - BLOOR-YORKVILLE Recently Completed Re-Development - Yorkville Village Mall, Toronto Avenue Road Newly Constructed Yorkville Entrance Interior Events Program First Capital 26
Slide 27: Bloor-Yorkville: Yonge and Bloor
Super Urban Neighbourhood Bloor-Yorkville Yonge and Bloor, Toronto, ON First Capital 27
Slide 28: Bloor-Yorkville: One Bloor East
Super Urban Neighbourhood Bloor-Yorkville One Bloor East, Toronto, ON Property Statistics Retail GLA 85,000 sf Commercial Parking 52 Stalls Key Tenants Direct Access to the Bloor-Yonge subway, the busiest station in Canada serving >400k people per day First Capital 28
Slide 29: One Bloor East: McEwan 2019 Opening
Super Urban Neighbourhood Bloor-Yorkville One Bloor East: McEwan 2019 Opening First Capital 29
Slide 30: One Bloor East: Chick-fil-A Canadian Flagship
Super Urban Neighbourhood Bloor-Yorkville One Bloor East: Chick-fil-A Canadian Flagship 2019 Opening First Capital 30
Slide 31: Recent Acquisition: 140 Yorkville Avenue
SUPER URBAN NEIGHBOURHOOD - BLOOR-YORKVILLE Recent Acquisition:140 Yorkville Avenue, Mixed-Use Development C B A Bloor-Yorkville A 140 Yorkville Avenue B Yorkville Village Mall C Hazelton Hotel First Capital 31
Slide 32: Liberty Village Assets
Super Urban Neighbourhood Liberty Village Assets Toronto, ON Demographics 5KM AVG 2019 Estimates Population 546,500 Average Household Income $110,900 Acreage 14.1 Retail GLA 396,000 sf Residential GLA 328,000 sf Office GLA 103,000 sf Total GLA 827,000 sf First Capital 32
Slide 33: Griffintown
Super Urban Neighbourhood Griffintown Montreal, QC Demographics 5KM AVG 2019 Estimates Population 411,000 Average Household Income $96,000 Acreage 3.2 Retail GLA 254,000 sf First Capital 33
Slide 34: Griffintown Key Tenants
Super Urban Neighbourhood Griffintown Montreal, QC Key Tenants First Capital 34
Slide 35: Mount Royal Village
Calgary's Premier Super Urban Neighbourhood Mount Royal Village Calgary, AB Demographics 5KM AVG 2019 Estimates Population 231,300 Average Household Income $147,000 Acreage 4.1 . GLA 380,000 sf First Capital 35
Slide 36: Mount Royal Village: Redevelopment Phase Completed
Before Current Calgary's Premier Super Urban Neighbourhood Mount Royal Village Calgary, AB Redevelopment Phase Completed Gross Leasable Area 118,000 sf First Capital 36
Slide 37: Mount Royal Village: Key Tenants
Current Calgary's Premier Super Urban Neighbourhood Mount Royal Village Calgary, AB Gross Leasable Area 98,300 sf Key Tenants First Capital 37
Slide 38: Active Developments
Developments Ive Act @e First SW CAPITAL
Slide 39: Developing in Super Urban Neighbourhoods
DEVELOPING IN SUPER URBAN NEIGHBOURHOODS Total Development Pipeline: 25m sf = 2m sf Commercial + 23m sf Residential King High Line Toronto, ON 3080 Yonge Street Toronto, ON Dundas & Aukland Toronto, ON Leaside Village Expansion Toronto, ON Centre Commercial Wilderton Montreal, QC First Capital 39
Slide 40: Liberty Village Assets: King High Line Phase
Super Urban Neighbourhood Liberty Village Assets King High Line Phase, Toronto, ON Property Statistics Acreage 2.8 Residential Units 506 Retail GLA 156,000 sf 100% Commercial FCR Ownership 67% Residential Commercial Tenants First Capital 40
Slide 41: King High Line
Super Urban Neighbourhood King High Line Toronto, ON First Capital 41
Slide 42: Dundas & Aukland
Ground-Up Development Dundas & Aukland Toronto, ON First Capital 42
Slide 43: Dundas & Aukland
Future Ground-Up Development Dundas & Aukland Toronto, ON Demographics 5KM AVG (2019 Estimates) Population 271,800 Average Household Income $133,200 Gross Leasable Area (at 100%) Retail GLA 43,000 sf Residential GLA 267,000 sf Total GLA 310,000 sf FCR Interest 71% First Capital 43
Slide 44: Centre Commercial Wilderton
Super Urban Neighbourhood Centre Commercial Wilderton Montreal, QC Re-development Commenced Demographics 5KM AVG 2019 Estimates Population 635,500 Average Household Income $90,700 First Capital 44
Slide 45: Centre Commercial Wilderton
Super Urban Neighbourhood Centre Commercial Wilderton Montreal, QC Re-development Commenced Under Construction Property Statistics Acreage 5 acres Pre-redevelopment GLA 112,000 sf Post Redevelopment GLA Retail GLA 130,000 sf Residential GLA 500,000 sf Total GLA 630,000 sf Key Tenants First Capital 4
Slide 46: 3080 Yonge St
Super Urban Neighbourhood Before 3080 Yonge St Toronto, ON Fully Integrated with Lawrence Subway Station Demographics 5KM AVG 2019 Estimates Population 406,400 Average Household Income $190,200 Current Total Acreage 2.0 Retail GLA 49,000 sf Office GLA 169,000 sf Total GLA 218,000 sf Key Tenants Firs
Slide 47: 19 & 25 Industrial Street
Active Development 19 & 25 Industrial Street Toronto, ON Demographics 5KM AVG (2019 Estimates) Population 478,000 Average Household Income $170,000 Gross Leasable Area (at 100%) Retail GLA 44,000 sf Office GLA 28,000 sf Total 72,000 sf Construction Commenced October 2019 First Capital 47
Slide 48: Future Development
Future Development Significant Density Pipeline First Capital 48
Slide 49: Short-Medium Term Development Ready
SHORT-MEDIUM TERM DEVELOPMENT READY Phase 2 Humbertown Phase 1 Residential Toronto, ON Wilderton Phase 2 Residential Montreal, QC Yonge & Roselawn Toronto, ON 1071 King (Liberty Village) Toronto, ON First Capital 49
Slide 50: Short-Medium Term Development Ready
SHORT-MEDIUM TERM DEVELOPMENT READY 140 Yorkville Toronto, ON 400 King Street West Toronto, ON 101 Yorkville Toronto, ON First Capital 50
Slide 51: Humbertown Shopping Centre
Future Development Humbertown Shopping Centre Toronto, ON Demographics 5KM AVG (2019 Estimates) Population 346,500 Average Household Income $122,700 Size 9.0 acres First Capital 51
Slide 52: Edenbridge Kingsway
Future Future Development Edenbridge Kingsway Humbertown, Toronto, ON Size 1.8 acres (Block 5 Phase 1) 252,000 sf Future Density (Retail: 7,000 sf; Residential 245,000 sf) Partner (50% on Block 5) Residential Expected Phase I 2021 Construction Start First Capital 52
Slide 53: Planned Mixed-Use Project: Yonge & Roselawn
Future Super Urban Neighbourhood Planned Mixed-Use Project Yonge & Roselawn, Toronto, ON Residential GLA (687 Units) 533,000 sf Retail GLA 65,000 sf Total GLA 598,000 sf First Capital 53
Slide 54: Yonge & Roselawn
Current Future Mixed-Use Project Yonge & Roselawn Toronto, ON Demographics 5KM AVG 2019 Estimates Population 480,000 Average Household Income $188,400 First Capital 54
Slide 55: Yonge & Roselawn
Future Future Mixed-Use Project Yonge & Roselawn Toronto, ON Residential GLA (687 Units) 533,000 sf Retail GLA 65,000 sf Total GLA 598,000 sf First Capital 55
Slide 56: 1071 King Street West
Future Future Development 1071 King Street West Toronto, ON Demographics 5KM AVG 2019 Estimates Population 540,000 Average Household Income $111,000 Gross Leasable Area (at 100%) Residential GLA 198,000 sf Retail GLA 5,000 sf Total GLA 203,000 sf Ownership Interest 67% Construction Start 2021 First
Slide 57: 400 King Street West
Existing Future Development 400 King Street West Toronto, ON Demographics 5KM AVG 2019 Estimates Population 560,000 Average Household Income $123,000 First Capital 57
Slide 58: 400 King Street West
Future Future Development 400 King Street West Toronto, ON Gross Leasable Area (at 100%) Residential GLA 415,000 sf Retail GLA 38,000 sf Total GLA 453,000 sf Ownership Interest 35% Construction Start 2021 First Capital 58
Slide 59: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) 59
Slide 60: ESG Initiatives
ESG INITIATIVES 175 119 Properties certified Recognized as Greater LEED-certified projects 76% of portfolio in GLA Toronto’s top employers 3.7m sf 160 AAA Electric car charging Honouree in the Highest rating possible stations installed Globe & Mail’s inaugural “2020 Women Lead Here” list First Capit
Slide 61: ESG Initiatives: Emissions
ESG INITIATIVES 13% decrease in Greenhouse Gas (GHG) emissions from 2014- 2018, despite 8% growth in GLA. 35 26 Millions Thousands 2019 information will be available in June 2020 30 25 25 25 Emissions (tC02e) 20 24 GLA (ft2) 15 24 10 23 5 23 - 22 2014 2015 2016 2017 2018 GHG Emissions (tCO2e) Report
Slide 62: Enhancing Super Urban Neighbourhoods Through Public Art
ENHANCING SUPER URBAN NEIGHBOURHOODS THROUGH PUBLIC ART 27 Public Art Installations across our portfolio Supporting Public Art Competitions in partnership with First Capital 62
Slide 63: Canada's Most Gender Diverse Company
CANADA’S MOST GENDER DIVERSE COMPANY EXECUTIVE BOARD MEMBERS MEMBERS 62% Women 38% Men 22% Women 78% Men Honouree in the Globe and Mail’s inaugural MANAGEMENT TOTAL “2020 Women Lead Here” list ROLES EMPLOYEES Strong gender diversity metrics achieved through all levels of the organization; over 50% o
Slide 64: Financial Strength and Flexibility
Financial Strength and Flexibility Super Urban Neighbourhoods
Slide 65: Capital Structure
CAPITAL STRUCTURE Enterprise Value $8.0b 19% Mortgages and Secured Facilities: $1.5b Unsecured Debentures: $2.5b Unsecured Term Loans: $0.8b 44% Unsecured Revolving Facilities: $0.3b ($800m total capacity) Total Unsecured $3.6b 37% Trust & Exchangeable Units: $3.0b (219.0m units) As of March 31, 202
Slide 66: Financial Strength and Flexibility
FINANCIAL STRENGTH AND FLEXIBILITY As at Q1 2020 2019 2018 2017 2016 Unsecured revolving credit facilities $800 $800 $800 $800 $800 (million) 71% Unencumbered assets (billion) $7.2 $7.0 $7.3 $7.4 $6.6 Unencumbered assets to unsecured of Q1 2020 assets debt 2.1x 2.2x 2.5x 2.4x 2.4x Secured debt as %
Slide 67: Well-Staggered Term Debt Maturities
WELL-STAGGERED TERM $800 6.0% DEBT MATURITIES Unsecured Term Loans Millions Mortgages Weighted Average Interest Rate 3.9% $700 Senior Unsecured Debentures Weighted Average Effective Interest % 5.0% Term to Maturity 5.0 years $600 95% of Term Debt is Fixed Rate 4.0% $500 $400 3.0% $300 2.0% $200 1.0%
Slide 68: Historical Performance
HISTORICAL PERFORMANCE $350 84% 82% $302 82% $300 $287 $284 $261 80% $250 $236 78% 78% 76% $200 74% $150 74% 72% $100 70% 71% 70% 68% $50 66% $0 64% 2015 2016 2017 2018 2019 FFO excl OGLE/share $1.05 $1.10 $1.16 $1.21 $1.24 Cash Dividends per share $0.86 $0.86 $0.86 $0.86 $0.86 ACFO less Dividend $2
Slide 69: Outlook
OUTLOOK Canada’s Super Urban Portfolio COVID-19 Preparedness • Investing in high-quality, mixed-use properties with • Unprecedent closure of the world economy has presented the focus on building large positions in targeted high challenges, FCR will continue to be guided by its corporate growth super
Slide 70: Contact
Adam Paul President & CEO Kay Brekken Executive VP & CFO First Capital Shops at King Liberty 85 Hanna Ave, Suite 400 Toronto, ON Tel: 416-504-4114 fcr.ca TSX: FCR.UN 70
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