Smartcentres Real Estate Investment Trust · TSX:SRU.UN
Smartcentres Real Estate Investment Trust — Q2 2024 Earnings Presentation
47 slides from Smartcentres Real Estate Investment Trust's earnings presentation, Aug 9, 2024
Slide 1: SmartCentres REIT Q2 2024 Investor Presentation
yy SMARTCENTRES’ REAL ESTATE INVESTMENT TRUST CANADA'S SHOPPING CENTRE FOR OVER THIRTY YEARS 2024 @2 INVESTOR PRESENTATION August 2024
Slide 2: Forward-Looking Statements
LOOKING STATEMENTS Certain statements in this document are "forward-looking statements” that constitute forward-looking information (within the meaning of Canadian securities laws) and that reflect management's expectations regarding the Trust's future growth, results of operations, performance and
Slide 3: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS At REIT share.
Slide 4: Q2 2024 Financial Highlights
Q2 2024 FINANCIAL HIGHLIGHTS In-place and Committed Occupancy Rate Renewed Rent Change (incl. Anchors) SPNOI (YoY Change) FFO / unit (diluted) FFO / unit from Condo and Townhome Closings AFFO / unit (diluted) Adj. Debt / Adj. EBITDA Q2 2024 98.2% 5.8% 1.3% $0.50 $0.01 $0.46 9.9x @12024 77% @ 63% © 5
Slide 5: About SmartCentres agenda
ABOUT SMARTCENTRES LEADING DEVELOPMENT PIPELINE ENVIRONMENTAL, SOCIAL AND GOVERNANCE FINANCIAL FLEXIBILITY AND STRENGTH APPENDIX TD) = 74 i = 74 2) 8)
Slide 6: About SmartCentres
‘ ABOUT MARTCENTRES
Slide 7: SmartCentres at a Glance
SMARTCENTRES AT A GLANCE iS tCentres martCentre Properties at key intersections mixed across Canada 98 2” In-place and | committed occupancy % Revenue from Walmart, ~24 largest retailer in the world sq. ft 35.2M of income-producing properties $ Property iclentified for transformation Total assets @
Slide 8: Our Foundation Is Supported by Three Key Pillars
ABOUT SMARTCENTRES OUR FOUNDATION IS SUPPORTED BY THREE KEY PILLARS Favourably located open-air Diversified portfolio of 86 million sq. ft. of projected shopping centres across the mixed-use generating mixed-use development! country with ample parking recurring income from formats including multi-re
Slide 9: Evolution of SmartCentres into a Leading Player
EVOLUTION OF SMARTCENTRES INTO A LEADING PLAYER afi WALMART JOINT ey) VENTURE WITH SMARTCENTRES JV Partners in 100 shopping centres 1989 - 1994 MITCHELL GOLDHAR HELPED TO BRING WALMART TO CANADA Ultimately developing 176 Walmart stores in Canada Walmart >/< SMARTLIVING SMARTCENTRES SMARTCENTRES AQUI
Slide 10: Recession Resistant Portfolio Provides Support for Sustainable Growth
ABOUT SMARTCENTRES RECESSION RESISTANT PORTFOLIO PROVIDES SUPPORT FOR SUSTAINABLE GROWTH Resilient Retail Base with Growing Mixed-use Portfolio 30+ Year Significant Robust Exceptional Strategic Development Financial Team Partnership Pipeline Position with Walmart SMARTCENTRES REIT | 2024 G2 INVESTOR
Slide 11: Top Tenants by Revenue
ABOUT SMARTCENTRES TOP 10 TENANTS BY REVENUE STABLE TENANTS AND CASHFLOWS Walmart >< Ux she, 994+” rental receipts G Loblaws % of tenants are national 954% oo foveyr = END % of rental income from 45+ top 10 tenants LCB @) RONA ft t fe} 6O#* {ooo Michael’ BEST BUY. SMARTCENTRES REIT | 2024 @2 INVESTO
Slide 12: Majority Walmart Anchored with Leading Occupancy
ABOUT SMARTCENTRES MAJORITY WALMART ANCHORED WITH LEADING OCCUPANCY In-place and Committed Centre Profile Occupancy Rate fe Greater-VECTOM?: 98.2% 72.3% BY Primary: REVENUE Secondary: 11.4% Greater-VECTOM?: BY 76.5% PROPERTY Primary: FAIR VALUE Secondary: 10.3% (9) SMARTCENTRES’ Peer Average! Walmar
Slide 13: Major Retailers Currently Accelerating Growth
ABOUT SMARTCENTRES MAJOR RETAILERS CURRENTLY ACCELERATING GROWTH fooewe TX Coszce Mark's sHOPEEnS FRESHCO ULoblaws
Slide 14: Upcoming Lease Maturities Provide Upside
ABOUT SMARTCENTRES UPCOMING MATURITIES PROVIDE UPSIDE 10.0 2 23% 3 80 ig 44% NEXT 40% Q 5 YEARS 3 6.0 16% WHS MATURITY 7) 14% r} 12% 12% g 40 a! 2 = 16% = £ 20 4% 9 is a Average Expiring Rent . — $23.14 per sq. ft.? Vacant 2024? 2025 2026 2027 2028 2029 2030 & Beyond Average Market Rent = Walmart Ot
Slide 15: Peer comparison
14% 6% 5% 3% 3% RioCan Choice Crombie First Capital
Slide 16: Exceptional Management Team with Significant Experience
EXCEPTIONAL MANAGEMENT TEAM WITH SIGNIFICANT EXPERIENCE ALIGNMENT AND ACCOMPLISHMENTS Largest shareholder with 20+% equity interest Over 30 years of real estate development experience Leading the REIT’s transformative development program Strong strategic business relationships, including bringing th
Slide 17: Leading Development Pipeline
LEADING DEVELOPMENT PIPELINE
Slide 18: Experienced Developers Core to Our DNA and Growth Plan
LEADING DEVELOPMENT PIPELINE WE ARE EXPERIENCED DEVELOPERS WHICH IS CORE TO OUR DNA AND GROWTH PLAN Significant Landbank * Less than 25% land utilization currently * Significant opportunity to create value on existing income-producing properties through intensification Strong Relationships * Strong
Slide 19: Multiple Avenues for Future Growth
LEADING DEVELOPMENT PIPELINE MULTIPLE AVENUES FOR FUTURE GROWTH Innovation / Value-Add Services Recurring Income Development Income Shopping Centres / Retail Condos Space for Logistics Office Townhomes EV Charging Apartments Digital Signage Self-Storage Sustainability Initiatives Industrial and Park
Slide 20: From Shopping Centres to City Centres
LEADING DEVELOPMENT PIPELINE FROM SHOPPING CENTRES TO CITY CENTRES SmartCentres was founded over 30 years ago, because we Canadians now need transit-connected homes with urban believed that Canadians deserved convenient access to amenities. So, SmartCentres is evolving and SmartLiving has affordable
Slide 21: Future Mixed-Use Development
FUTURE MIXED-USE DEVELOPMENT Zoning Approved Bea 66% CONSTRUCTION ZONING APPROVED 85.9 Million Rezoning Total sq. ft. Application Submitted 13% Under in Pl . Construction In Planning 20% 1% Pipeline consists principally of residential projects but pick Ital 1.2 INEWARNING also includes additional re
Slide 22: Strategic Recurring and Development Income Initiatives from Residential Projects
STRATEGIC RECURRING AND DEVELOPMENT INCOME INITIATIVES FROM RESIDENTIAL PROJECTS 2ady pipeline of condo and townhome profits and expanding apartm nts portfolio 2020 2021 2022 2023 2024 TRANSIT CITY 1&2 TRANSIT CITY 3 TRANSIT CITY TRANSIT CITY 4&5 VAUGHAN NORTHWEST CONDO UNIT CLOSINGS CONDO UNIT TOWN
Slide 23: Development Initiatives Under Construction
LEADING DEVELOPMENT PIPELINE DEVELOPMENT INITIATIVES UNDER CONSTRUCTION IN MILLIONS Projects Under Construction Type REIT’s Actual / Estimated Initial % of GFA' No. of (Location/Project Name) Share (%) Occupancy / Closing Date Completion (sq. ft.) Units OF DOLLARS Vaughan NW 50% Q1 2024 55% 366,000
Slide 24: Creating Value by Partnering with Leading Players
LEADING DEVELOPMENT PIPELINE CREATING VALUE AND DIVERSIFYING BY PARTNERING WITH LEADING PLAYERS a <o RETAIL Properties SIMON APARTMENTS ©°%' = JADCO” bs CONDOS © centrecourt TOWNHOMES ale SELF-STORAGE SmartStep Self Storage Penguin Penguin Penguin Continuing construction on 200,000 sa. ft. Canadian
Slide 25: SmartStop Self-Storage
\\ AN LEADING DEVELOPMENT PIPELINE SMARTSTOP Storage Units: 21,000 Over 1.25 Million sq. ft. of Operating GFA OPEN / IN LEASE-UP * Toronto (Dupont): Opened Oct. 2019 * Toronto (Leaside): Opened June 2020 * Brampton (Bramport): Opened Nov. 2020 * Vaughan NW: Opened Jan. 2021 + Oshawa South: Opened Au
Slide 26: Building Holistic Communities
LEADING DEVELOPMENT PIPELINE BUILDING HOLISTIC COMMUNITIES €3 SMARTLIVING APARTMENTS * CONDOS » TOWNHOMES ° SENIORS’ TRANSIT. “CONNECTIVITY Enhanced urban programming Pedestrian-focused greenspace Prime transit-connected locations Creativity and diversity are leveraged with public spaces designed to
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Slide 28: SmartVMC Current
CURRENT PARK PLACE @ SMART TRNSIT CITY LEADING DEVELOPMENT PIPELINE SMARTVMC The New City Centre +100 Acre Land 999 TRANSIT HUB ON SITE * TTC subway station * Regional bus terminal + VIVA rapid transit station 9 WALMART Y YMCA * Opened on-site, April 2022 140,000 sq. ft. Opened October 2020, freeing
Slide 29: SmartVMC Vision
VISION $ SMART SMARTVMC WEST SMARTVMCG EAST SMARTVMC WEST LAND. ACQUIRED DEC 2021 LEADING DEVELOPMENT PIPELINE SM ARTYMC FULL SMARTVMC BUILD-OUT CAPABILITY: + 15 million sq. ft. of residential space, 3 million sq. ft. of office soace and 2 million sq. ft. +20,000,000 sq. ft. on Completion of retail
Slide 30: ArtWalk
} SMART PRESOLD CONDO UNITS —— PHASE 1—_ MIXED-USE TOWERS sq. ft. RESIDENTIAL UNTS 50% REIT OWNERSHIP CONSTRUCTION COMMENCED IN FALL 2023 LEADING DEVELOPMENT PIPELINE FULL ARTWALK BUILD-OUT: ARTWALK pee * 12 buildings + +4 Million sq. ft + 4,600 residential units SMARTCENTRES REIT | 2024 G2 INVESTOR
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Slide 32: ESG 2023 Highlights
ENVIRONMENTAL, SOCIAL AND GOVERNANCE 2023 HIGHLIGHTS ESG and sustainability considerations are woven into the fabric of SmartCentres of retail properties achieved 90” BOMA Best Gold certification for excellence in energy and environmental management [+) of retail tenant portfolio committed to net ze
Slide 33: Annual Highlights of ESG Strategy
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ANNUAL HIGHLIGHTS OF ESG STRATEGY mplementation Roadmap Year 1: 2022 * Finalized first three-year ESG Strategic Plan * Published first annual ESG Report » Updated Privacy and Cyber Security Policy * Conducted employee satisfaction survey * Completed first Global
Slide 34: Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE GOVERNANCE RECENT GOVERNANCE ENHANCEMENTS Adopted Trustee Term Limits Independence on Committees Formation of Independent Committee Increased CEO Ownership Requirements CEO Ownership Requirements Post Exit Oversight of the ESG Strategy SMARTCENTRES ACTION Newly e
Slide 35: Financial Flexibility and Strength
J vy \ V FINANCIAL Pretesitniry ~AND STRENGTH |
Slide 36: Total Returns in Excess of Benchmarks
FINANCIAL FLEXIBILITY AND STRENGTH TOTAL RETURNS IN EXCESS OF BENCHMARKS Value of $100 (Assumes Reinvested Distributions)! $1,165 $1,000 11.9% Average Annual Return Since IPO! $599 ——SmartCentres TSX Capped REIT TSX Composite SMARTCENTRES REIT | 2024 G2 INVESTOR PRESENTATION 35
Slide 37: Peer comparison
SmartCentres Choice Crombie First Capital RioCan
Slide 38: Significant Unencumbered Asset Base
FINANCIAL FLEXIBILITY AND STRENGTH SIGNIFICANT UNENCUMBERED ASSET BASE Total Assets and Unencumbered Assets! (in Billions of $) 117 19 12.0 24.9” CAGR’ since IPO 11.3 10.7 8.4 N . . 6.6, 6.5 6.0 5.7 5.8 42 42 44 43 3.6 39 3.4 24 25 ey 1.5 og | 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2
Slide 39: Balanced Capital Structure
FINANCIAL FLEXIBILITY AND STRENGTH BALANCED CAPITAL STRUCTURE SECURED DEBT W.A. RATE: 4.31% UNSECURED DEBT W.A. Rate?: 4.00% OTHER? EQUuITY* es? Yield: 7.75% Enterprise Value’: $10.3B $4.3B Interest Coverage 2.5x W.A. Maturity 3.1 Years 18% Secured TOTAL DEBT $5.4B 82% Unsecured DBRS Credit Rating B
Slide 40: Conservative Debt Maturity Profile
FINANCIAL FLEXIBILITY AND STRENGTH CONSERVATIVE DEBT MATURITY PROFILE $1,500 27% 5 19% # $1,000 ra 5 15% 12% $500 8% 6% $24 $26 $59 $21 $0 2025 2026 2027 2028 2029 2030 Thereafter Secured Debt ™ Unsecured Debentures m Unsecured Credit Facilities and Other Debt % of Total Debt SMARTCENTRES REIT | 202
Slide 41: Appendix
APPENDIX
Slide 42: Vaughan NW Phase 1
PHASE1 TOWNHOMES, MIXED USE DEVELOPMENT VAUGHAN NW Location: 1 km from Canada’s First Smart Major Mackenzie Dr W & Weston Rd Hospital (Opened 41 Acres February 2021) Retail & Self Storage 304,000 sq. ft. SMARTCENTRES REIT | 2024 G2 INVESTOR PRESENTATION a
Slide 43: Vaughan NW Phases
am VIEW BLY PHASE 1 174 FREEHOLD TOWNHOMES. PHASES 3 RESIDENTIAL, BUILDINGS VAUGHAN NW Major Mackenzie Dr W & Weston Rd 1,500,000 sq. ft. PHASE 2 2 SENIORS" BUILDINGS PHASE 1 174 Freehold Townhomes JV with Fieldgate 120 units released for sale 99 units pre-sold PHASE 2 PHASE 3 Seniors’ Apartment & 3
Slide 44: Canadian Tire Corporation Leaside
APPENDIX CANADIAN TIRE CORPORATION LEASIDE 224,000 sq. ft. Retail Project 200,000 sa. ft. flagship Canadian Tire store 24,000 sa. ft. of additional retail space Canadian Tire expected to take possession in early 2026 50/50 joint venture with Penguin SMARTCENTRES REIT | 2024 G2 INVESTOR PRESENTATION
Slide 45: The Millway
APPENDIX THE MILLWAY % SMART 458 purpose-built rental units (45 in Transit City 4 podium, 47 Transit City 5 podium, 366 in Millway Tower) 50% REIT ownership 88% of the units leased SMARTCENTRES REIT | 2024 G2 INVESTOR PRESENTATION 44
Slide 46: Park Place
} SMART 1,094 RESIDENTIAL. UNITS TOWERS sq. ft. 48 &56 STOREYS SQ.FT. RETAIL SPACE Mi MM LZ APPENDIX * 67% REIT ownership PA RK Pl ACE * Pre-sales have commenced SMARTCENTRES REIT | 2024 G2 INVESTOR PRESENTATION 45
Slide 47: Thank You
THANK YOU. For more information, please contact: Investor Relations T 905 326 6400 httos://smartcentres.com/investing, 5 SMARTCENTRES’® investorrelations@smartcentres.com REAL ESTATE INVESTMENT TRUST
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