Pro Real Estate Investment Trust · TSX:PRV.UN
Pro Real Estate Investment Trust — Proreit — Investor Presentation (November 2023)
32 slides from Pro Real Estate Investment Trust's investor presentation, Nov 8, 2023
Slide 1: Built for Sustainable Growth and Performance
Built for Sustainable Growth and Performance INVESTOR PRESENTATION / NOVEMBER 2023 PROREIT / TSX:PRV.UN INVESTOR PRESENTATION / NOVEMBER 2023 1
Slide 2: An Industrial-Focused, High-Quality Canadian REIT
An Industrial-Focused, High-Quality Canadian REIT (TSX: PRV.UN) As at September 30, 2023 $1.05B 6.4M 10.8M 126 Total Owned Gross Managed Gross Properties3 Assets Leasable Area Leasable Area Across Canada (sq. ft.) (sq. ft.) 81.3% 98.2% 4.0 Industrial Gross Occupancy Weighted Average Western Canada O
Slide 3: Our Track Record
Our Track Record $84.5 99.0% $81.8 $1,036 $1,055 $1,058 $1,047 $990 98.6% 98.5% 98.4% $635 98.2% 98.0% $21.1 $13.1 $11.3 $1.7 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 2020 2021 2022 Q1 2023 Q2 2023 Q2 2023 Total assets ($ Millions) Occupancy rate (%) Net income a
Slide 4: Building Sustainable Value
Building Sustainable Value Our Values Our Mission Integrity To invest in high-quality commercial Operating our business in a responsible and ethical real estate and manage properties manner to build trust with our stakeholders to high standards, while contributing to the local communities in which T
Slide 5: Our Competitive Advantages
Our Competitive Advantages Strategic positioning in the light industrial sector in Canada 01 Clear strategy for growth and value creation 02 Commitment to sustainable development 03 Financial discipline 04 Seasoned leadership with proven track record 05 PROREIT / TSX:PRV.UN INVESTOR PRESENTATION / N
Slide 6: Strategic Positioning in the Light Industrial Sector in Canada
Strategic Positioning in the Light Industrial Sector in Canada 01 PROREIT / TSX:PRV.UN INVESTOR INVESTOR PRESENTATION PRESENTATION // NOVEMBER 2023 6
Slide 7: Focused on the Light Industrial Sector in Canada
Focused on the Light Industrial Sector in Canada Industrial Sector Advantages Base Rent by Asset Class Base Rent by Region As at September 30, 2023 As at September 30, 2023 ∕ Defensive asset class ∕ Solid and stable fundamentals 8.4% 12.2% – Lower market rent volatility 19.9% 8.9% – Lower operating
Slide 8: Industrial Portfolio Growth
Industrial Portfolio Growth Fair Value of Industrial Investment Properties Industrial Net Operating Income As at September 30, 2023 ($ Millions) ($ Millions) 861 5.22M $800.2 $811.0 $39.6 Industrial GLA $779.3 Properties (sq. ft.) $691.4 $26.9 98.4% 4.0 $20.3 Occupancy Weighted Average Rate2 Lease T
Slide 9: Leading Position in the Halifax Industrial Market
Leading Position in the Halifax Industrial Market Halifax’s Burnside Industrial Park Overview Halifax’s Market Overview Burnside is the largest industrial park north of While investor demand for industrial properties continues to exceed Boston and east of Montreal, with almost 2,000 expectations, th
Slide 10: Our Retail and Office Sectors
Our Retail and Office Sectors Retail Portfolio: Office Portfolio: ∕ High-quality community service centres ∕ Mainly suburban and mixed-use flex office buildings, outside large metropolitan areas ∕ 68.9% of base rent from national grocery stores, pharmacies, financial institutions, government ∕ Low r
Slide 11: A Fully Integrated Business Model Driving Synergies
A Fully Integrated Business Model Driving Synergies Internalized wholly-owned property management division, Compass Increasing Our Reach in the Commercial Realty, is a long-established group operating autonomously Property Management Space from Halifax (headquarters) ∕ Offices in Halifax, Moncton, M
Slide 12: Diversified and Strong Tenant Base
Diversified and Strong Tenant Base Top 10 Tenants High-Quality Base Rent As at September 30, 2023 As at September 30, 2023 Base Rent Base Rent from Top 10 68.9% National and 28.3% Tenant Government Accounts Tenants In-place Base Rent from 34.3% Credit Quality Tenants Accounts PROREIT / TSX:PRV.UN IN
Slide 13: A Resilient Portfolio in All Market Conditions
A Resilient Portfolio in All Market Conditions Occupancy Rate (Including Committed Space) 99.5% 99.3% 99.2% 99.2% 99.4% 98.4% 98.5% 98.6% 99.0% 98.2% 98.4% 98.0% 97.7% 97.6% 97.8% 98.0% 97.5% 96.9% 95.3% 94.7% Low-risk portfolio 93.0% 92.8% consistently near 100% 92.4% occupancy 89.5% 2020 2021 2022
Slide 14: Clear Strategy for Growth and Value Creation
Clear Strategy for Growth and Value Creation 02 PROREIT / TSX:PRV.UN INVESTOR PRESENTATION / NOVEMBER 2023 14
Slide 15: Our Strategy to Generate Value
Our Strategy to Generate Value Increase scale through Focus on light industrial Optimize balance Medium-Term Targets1 organic and acquisitive properties in Canada sheet and capital (3-5 years) : growth ∕ Continue to focus on allocation high-quality light industrial ∕ Build robust pipeline of accreti
Slide 16: Successful Joint Operation to Increase our Reach
Successful Joint Operation to Increase our Reach Joint operation with Crestpoint Real Estate Investments Ltd. completed on August 4, 2022 to jointly own 42 properties. ∕ Two-portion transaction, immediately accretive 42 to earnings: Properties – PROREIT and Crestpoint each acquired a 50% interest in
Slide 17: Embedded Value in our Portfolio
Embedded Value in our Portfolio 2023 Renewals 2024 Renewals Renewed as of Q3 2023 Renewed as of Q3 2023 (% GLA) (% GLA) 11.2% 17.9% 82.1% Weighted Avg Estimated Asset Fair Value per In-Place Net Market Spread Class sq. ft. Rent Net Rent1 88.8% Non-Renewed Tenants Non-Renewed Tenants Industrial $8.21
Slide 18: Industrial Leasing Highlights
Industrial Leasing Highlights +40% +36% +29% spread vs. spread vs. spread vs. prior year prior year prior year 3200 Guénette Street, 66K sq. ft. 1500 Notre Dame Avenue, Winnipeg, MB 61K sq. ft. 159 Cleopatra Drive, 17K sq. ft. Ville St. Laurent, QC Ottawa, ON New Lease New Lease New Lease +102% +39%
Slide 19: Well-staggered Lease Maturity Over Time by Asset Class
Well-staggered Lease Maturity Over Time by Asset Class Staggered Lease Maturities (sq. ft.) 2,700,000 38.9% 40.0% 16.4% 17.6% 2,312,246 12.4% 13.7% 20.0% 2,200,000 1.0% 0.0% 1,700,000 -20.0% 1,221,141 1,200,000 1,058,199 -40.0% 738,452 797,865 700,000 -60.0% 200,000 74,412 -80.0% -300,000 2023 2024
Slide 20: Our Track Record of Disciplined Capital Allocation
Our Track Record of Disciplined Capital Allocation ∕ 157 acquisitions since inception Total Return to Unitholders ∕ $400M in new equity raised since inception 250.0% ∕ Distribution yield of 9.96%1 200.0% ∕ 3-year total return of 120.3%%2 150.0% ∕ Monthly distributions since 2014 100.0% 50.0% - Mar-2
Slide 21: Commitment to Sustainable Development
Commitment to Sustainable Development PROREIT / TSX:PRV.UN 03 INVESTOR PRESENTATION / NOVEMBER 2023 21
Slide 22: ESG Highlights (From 2022 ESG Report)
ESG Highlights (From 2022 ESG Report) Environmental 14 21% 66% / 54% of properties tracked for water usage, 28% of properties tracked for gas usage, 26% PROREIT-owned Properties are tracked Leases contain a of properties tracked for waste management BOMA certified on ENERGY STAR® sustainability clau
Slide 23: Pursuing our ESG Journey
Pursuing our ESG Journey Environmental Set target for reduction in 85% 100% / Better tracking enables goals to be set to reduce usage energy and waste Properties onboarded to Leases contain / Increasing electrical charging stations consumption ENERGY STAR® sustainability clauses Portfolio Manager /
Slide 24: Financial Discipline
Financial Discipline 04 PROREIT / TSX:PRV.UN INVESTOR PRESENTATION / NOVEMBER 2023 24
Slide 25: Q3-2023 Financial Highlights (Nine Month Period)
Q3-2023 Financial Highlights (For the Nine Month Period) $1.05B $26.1M Total Net Income and Assets Comprehensive Income 0.3% 2.8% Net Operating Same Property Income Decline NOI Growth1, 2 (Driven by sales of (Adjusted for Temporary non-core properties Vacancy) $46M In Available Credit Facility 1 Sam
Slide 26: Q3-2023 Financial Highlights (Three Month Period)
Q3-2023 Financial Highlights (For the Three Month Period) Same Property NOI1,2 Property Property Operating Net Operating Revenue Expenses Income $12.0M $11.9M 1.7% $24.1M $24.1M (1.2%) Same Property NOI Growth1,2 (Adjusted for Temporary Vacancy) $14.8M $14.1M Office Retail $10.0M $9.3M Industrial Q3
Slide 27: Actively Managed Capital Structure
Actively Managed Capital Structure Properties Mortgage Maturities by Years As at September 30, 2023 3.76% $160.0 6.00% Current Weighted $147.2 Average Mortgage $140.0 $130.6 4.91% Interest Rate 4.58% 5.00% 4.33% $120.0 $100.0 3.63% 3.54% 4.00% 4.0 3.51% Weighted Average $80.0 3.00% Term to Maturity
Slide 28: Seasoned Leadership with Proven Track Record
Seasoned Leadership with Proven Track Record 05 PROREIT / TSX:PRV.UN INVESTOR PRESENTATION / NOVEMBER 2023 28
Slide 29: Experienced and Aligned Management and Board
Experienced and Aligned Management and Board Senior Management Team Board of Trustees Deep industry James W. Beckerleg Trustee, Chair of the Board and Co-Founder knowledge and expertise in real Vincent Chiara estate, property Independent Trustee management, M&A Martin Côté Gordon G. Lawlor, CPA Alis
Slide 30: History of Executing on Our Strategy
History of Executing on Our Strategy $6M Total Assets $635M Total Assets $1.05B Total Assets 2013 2017 2018 2019 2020 2021 2022 2023 1 property 66 properties 84 properties 92 properties 91 properties 120 properties 130 properties 126 properties PROREIT $69.1M in 7 properties 34 acquired $1B asset va
Slide 31: Why Invest in PROREIT?
Why Invest in PROREIT? Industrial-focused portfolio in attractive cities Financial discipline across Canada ∕ Stable cashflows with ample liquidity (cash and undrawn portion of ∕ Low-risk portfolio with fully-internalized asset and property credit facility) management ∕ Ten years of asset growth whi
Slide 32: Disclaimer
Disclaimer About this Presentation This presentation is dated November 8, 2023 and is strictly intended to provide general information about PRO Real Estate Investment Trust (“PROREIT”) and its business. This presentation does not constitute an offer to sell or the solicitation of an offer to buy an