Granite Real Estate Investment Trust · TSX:GRT.UN
Granite Real Estate Investment Trust — Investor Presentation (March 2020)
20 slides from Granite Real Estate Investment Trust's investor presentation, March 2020
Slide 1: Granite REIT Investor Presentation March 2020
GRANITE REIT Investor Presentation March 2020
Slide 2: Presentation of Certain Information
PRESENTATION OF CERTAIN INFORMATION Unless otherwise indicated in this presentation, all information is presented as of December 31, 2019 and all financial information that is identified as refers to the twelve month period ending December 31, 2019. For definitions of certain non-IFRS measures used
Slide 3: Granite Highlights
GRANITE HIGHLIGHTS ORGANIZATIONAL PRINCIPLES PORTFOLIO OVERVIEW FINANCIAL PERFORMANCE 85 income-producing Long-term total return focused properties + 6 development 81% AFFO POR properties 21% net leverage ratio Conservative and flexible 40M square feet capital structure GRT.UN on TSX and GRP.U on NY
Slide 4: Granite Highlights – ESG
GRANITE HIGHLIGHTS – ESG ENVIRONMENTAL SOCIAL GOVERNANCE Promote energy efficiency and sustainable practices at 100% independent Board Promote employee well-being excluding CEO our properties Reduce use of resources and promote waste diversion Promote volunteerism and Experienced and diverse board c
Slide 5: Granite's Evolution
GRANITE’S EVOLUTION Investment Property Summary Then - December 31, 2011 Now - December 31, 2019 24.3M SF 13.8M SF 14.1M SF Modern Multi-Purpose Special Purpose Logistics/Distribution $802M $1,089M 6.8M SF $2,509M Multi-Purpose $1.9B $842M $4.5B Value Value 3 Properties Under 8.9M SF Development and
Slide 6: Portfolio Transformation Strategy
PORTFOLIO TRANSFORMATION STRATEGY Invest Focus on modern facilities that selectively/opportunistically in Target markets with superior meet the demands of evolving property types and economic conditions and market E-Commerce and traditional markets benefiting from fundamentals distribution users tec
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Historical Operating Performance ($M) Distributions and Payout Ratios 91% $274 82% 81% $245 $248 71% $223 $216 85% $214 79% $203 $204 78% 78% $188 $185 $187 71% $181 $183 $181 2.80 $173 69% 68% $170 68% 2.72 $162 $158 2.60 $154 $145 $143 $145 $138 2.43 2.30 2.21 $110 2.11 1.99
Slide 8: GRT Historical Performance
GRT HISTORICAL PERFORMANCE Total Return vs TSX Composite & TSX Capped REIT Indices Cumulative Total Return % Annualized Total Return % 35% 220% 195% 30% 170% 25% 145% 20% 120% 95% 15% 70% 10% 45% 20% 5% -5% 0% 1Yr 2Yr 3Yr 5Yr Granite REIT TSX Capped REIT Index TSX Composite Index Granite REIT TSX Ca
Slide 9: Globally Diversified Portfolio
GLOBALLY DIVERSIFIED PORTFOLIO Nine countries - 91 properties – 40 million square feet GERMANY 11 properties 3.5M SF POLAND 2 properties 0.3M SF ENGLAND CANADA 1 property 0.1M SF 26 properties 5.9M SF CZECH NETHERLANDS REPUBLIC 4 properties 1 property UNITED STATES 1.7M SF 0.3M SF 34 properties 20.0
Slide 10: Portfolio Segmentation by Geography
PORTFOLIO SEGMENTATION BY GEOGRAPHY By Income Producing Property Fair Value By Annualized Revenue $641M $40.5M 15% 15% $48.7M $979M 18% 22% $806M 18% $4.4B 23% $267M $61.8M 43% $116.1M 45% $1,951M By Square Feet By Number of Income-Producing Properties 5.9M SF 6.0M SF 18 15% 15% 21% 31% 26 8.1M SF 2
Slide 11: Portfolio Segmentation by Category
PORTFOLIO SEGMENTATION BY CATEGORY Income-Producing Properties by Value Segmented by Category Multi-Purpose Properties 36 Properties 6.8 M SF (∼190K SF/property) $0.8 B Fair Value (∼$123/SF) WALT: 5.1 years $52.2 M Annualized Revenue (∼$7.64/SF) Magna Concentration: 75% Modern Logistics Properties C
Slide 12: Development Pipeline
DEVELOPMENT PIPELINE Tilburg, Ede and Weert, Netherlands Plainfield, Indiana Altbach (Stuttgart), Germany Houston, Texas Incorporate development into our growth plans to enhance total return & platform value 12
Slide 13: Lease Expiration Profile
LEASE EXPIRATION PROFILE Outstanding Lease Expiries by Annualized Revenue(1) Annualized Overall Revenue $267M WALT 6.5 Years Occupancy 99.0% 40.9% 70 Canada USA Austria Europe 60 50 Annualized Revenue (C$M) 22.0% 40 30 12.6% 11.5% 20 4.8% 6.9% 1.3% 10 0 2020 2021 2022 2023 2024 2025 2026+ % of Annua
Slide 14: High Quality & Creditworthy Tenant Base
HIGH QUALITY & CREDITWORTHY TENANT BASE Annualized Credit Top 10 Tenants GLA % WALT Revenue % Rating Other Tenants Magna 42% 35% 5.2 A (low) Amazon 8% 6% 19.1 AA (low) ADESA 3% 1% 9.6 NR Restoration Hardware 3% 3% 8.3 NR Ingram Micro 2% 3% 5.0 BBB (low) Hanon Systems 2% 1% 10.9 AA Mars Petcare 2% 3%
Slide 15: Balance Sheet Strength
BALANCE SHEET STRENGTH Capitalization Debt Maturity Profile Unit Price (02/28/2020) $68.4 $600 Units Outstanding 54.1 $500 Market Capitalization $3,695 $400 Credit Facility $0 (C$M) Debentures 3.788% due Jul/21 $250 $300 Debentures 3.873% due Nov/23 $400 $200 Term Loan 0.522% due Dec/24 $240 Term Lo
Slide 16: Credit Metrics Summary
CREDIT METRICS SUMMARY • The following table was sourced from DBRS’ Canadian Real Estate Peer Comparison dated January 2020. DBRS Canadian Real Estate Peer Comparison1: Peer Group Granite Rank Granite Average Among Peer Group Total Debt to Capital 32.4% 49.6% #2 Total Debt to EBITDA 6.5x2 9.5x #2 Ca
Slide 17: Financial Flexibility & Target Long-Term Leverage Ratio
FINANCIAL FLEXIBILITY & TARGET LONG-TERM LEVERAGE RATIO • Strong balance sheet provides pathway for measured growth with potential for further diversification and optimization of the portfolio • Target long term net leverage ratio of ∼30 - 35% while maintaining patient and opportunistic approach to
Slide 18: Canadian Real Estate Debt Peer Comparison
CANADIAN REAL ESTATE DEBT PEER COMPARISON1 Total Debt-to-Capital Total Debt-to-EBITDA 80% 18.0x 16.0x 70% 14.0x 60% 12.0x 50% 10.0x 40% 8.0x 6.0x 30% 4.0x 20% 2.0x 10% 0.0x Granite has the lowest leverage within DBRS1 universe of Canadian Real Estate entities 1 Source: DBRS Canadian Real Estate Peer
Slide 19: Canadian Real Estate Debt Peer Comparison
CANADIAN REAL ESTATE DEBT PEER COMPARISON1 EBITDA Interest Coverage Distributions/Cash Flow from Operations2,3 12.0x 120% 10.0x 100% 8.0x 80% 6.0x 60% 4.0x 40% 2.0x 20% 0.0x 0% Granite has leading cash flow coverage metrics among DBRS1 universe of Canadian Real Estate entities 1 Source: DBRS Canadia
Slide 20: Leadership Team
LEADERSHIP TEAM Kevan Gorrie Teresa Neto • President and Chief Executive Officer • Chief Financial Officer • Over 20 years of real estate experience in • Over 30 years of varied business experience, Canada, the United States and Germany. including ∼10 years as a CFO for publicly- • Previously served
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