Granite Real Estate Investment Trust · TSX:GRT.UN
Granite Real Estate Investment Trust — Shareholder Meeting (June 2023)
18 slides from Granite Real Estate Investment Trust's shareholder meeting presentation, Jun 8, 2023
Slide 1: Joint Annual General Meetings of Granite REIT and Granite REIT Inc.
Joint Annual General Meetings of Granite Real Estate Investment Trust and Granite REIT Inc. | June 8, 2023
Slide 2: Presentation of Certain Information
PRESENTATION OF CERTAIN INFORMATION • Unless otherwise indicated in this presentation, all information is presented as of December 31, 2022 and all financial information that is identified as current refers to the period ending December 31, 2022. For definitions of certain non-IFRS performance measu
Slide 3: Granite Highlights
GRANITE HIGHLIGHTS (as at December 31, 2022)2 ORGANIZATIONAL PRINCIPLES PORTFOLIO OVERVIEW FINANCIAL PERFORMANCE • Long-term total return • 128 income-producing • 77% LTM AFFO POR3 focused properties + 12 • 32% net leverage ratio3 • Conservative and flexible development • GRT.UN on TSX and GRP.U cap
Slide 4: Granite's Evolution
GRANITE’S EVOLUTION Then - December 31, 2012 Now - December 31, 20222 0.6M SF Flex/Office 45M SF 11.8M SF $146M Distribution/E- Multi-Purpose 16.2M SF 4.9M SF commerce $690M Special Purpose Industrial/Warehouse $6,170M $970M $1,085M $1.7B 8.9M SF $8.8B Value Special Purpose Value $1,085M 8 PUD’s & 4
Slide 5: Highlights for 2022: Strategic Allocation of Capital
HIGHLIGHTS FOR 2022 Strategic Allocation of Capital $460M invested in modern assets in key e-commerce and 1 distribution markets in the GTA, the U.S., Germany and Netherlands at average stabilized yield of 3.9% US$400M of new unsecured term debt, issued for a 3-year 2 term bearing a fixed interest r
Slide 6: Highlights for 2022: Portfolio Enhancement and Tenant Diversification
HIGHLIGHTS FOR 2022 Portfolio Enhancement and Tenant Diversification 8 IPP totaling 2.8MSF acquired with an average age of 5.1 1 years and WALT of 9.3 years in key distribution markets in the GTA, the U.S., Germany and the Netherlands 4 completed development & expansion projects (1.8MSF of GLA) whic
Slide 7: Highlights for 2022: Financial and Operational Performance
HIGHLIGHTS FOR 2022 Financial and Operational Performance 5.00 CAGR 4.80 FFO1: +6.4% FFO1 and AFFO1 per unit of $4.43 and $4.05, respectively AFFO1: +5.6% 1 representing a year over year increase of 11% and 8%, 4.60 4.43 respectively 4.40 SPNOI - cash basis average year-over-year growth - constant 4
Slide 8: Highlights for 2022: ESG + R Performance
HIGHLIGHTS FOR 2022 ESG + R Performance Ranked 3rd out of 10 in the United States of America | Industrial GRESB peer group. Granite’s score increased by 12% compared to 2021 improving Granite’s overall position from 1 3rd → 2nd place out of 9 in the North American Industrial | Listed | Tenant Contro
Slide 9: Commitment to Green Investments
COMMITMENT TO GREEN INVESTMENTS Completed development of a Green Building in Development in progress of a Green Building in Altbach, Germany Brantford, ON, Canada Completed development of two Green Completed Green Building expansion of a Completed development of a Green Building in Buildings in Hous
Slide 10: Case Study: Tilburg, Netherlands
CASE STUDY: TILBURG, NETHERLANDS Tilburg is located in the south of the Netherlands, near the Belgium border, with close proximity to major distribution nodes The property was acquired as a build-to-suit distribution center for the world’s largest sporting goods retailer Decathlon Netherlands B.
Slide 11: Case Study: Fort Worth, Texas
CASE STUDY: FORT WORTH, TEXAS Fort Worth is located just outside of Dallas to the West with close proximity to major distribution nodes The property was developed on a speculative basis and prior to completion leasing was secured with a leading North American glassware provider as a distribution
Slide 12: Highlights for 2022: Unitholder Return and Increased Distribution
HIGHLIGHTS FOR 2022 Unitholder Return and Increased Distribution Cumulative Total Return % -31.9% total return for 2022 vs -17.0% for the S&P TSX Capped 1 REIT Index and -5.8% for the S&P/TSX Composite Index 350% 325% 300% 3.2% year-over-year increase in the annual amount distributed 2 to unitholder
Slide 13: 2023 Priorities
2023 PRIORITIES PRIORITY PROGRESS TO DATE Driving NAV, FFO1 and AFFO1 per unit growth while Q1 2023 FFOPU1 $1.25 (+17% YOY and +4% QOQ); 1 maintaining conservative capital ratios AFFOPU1 $1.18 (+18% YOY and +12% QOQ) Q1 2023 Net Debt1-to-EBITDA 7.8x and Net Leverage1 32% Executing on development
Slide 14: Leadership Team
LEADERSHIP TEAM Kevan Gorrie Teresa Neto Lorne Kumer Michael A. Ramparas President and Chief Executive Officer Chief Financial Officer Executive Vice President, Executive Vice President, Global Head of Global Real Estate Real Estate & Head of Investments Witsard Schaper Lawrence Clarfield Jon Sorg S
Slide 15: Thank You
THANK YOU INVESTOR RELATIONS CONTACT Andrea Sanelli Associate Director, Legal & Investor Services T: 647.925.7504 E: ir@granitereit.com June 2023 15
Slide 16: Appendix: Non-IFRS Performance Measures and Ratios
APPENDIX The following non-IFRS performance measures and non-IFRS ratios are important measures used by management in evaluating the Trust’s underlying operating performance and debt management. These non-IFRS performance measures and non-IFRS ratios are not defined by IFRS and do not have standar
Slide 17: B) Non-IFRS Ratios
Same property net operating income - cash basis Same property NOI - cash basis refers to the NOI - cash basis for those properties owned by Granite throughout the entire current and prior year periods under comparison. Same property NOI - cash basis excludes properties that were acquired, disposed o
Slide 18: Subsequent Events Applicable to Dec 31, 2022 and March 2023
Interest coverage ratio The interest coverage ratio is calculated on a 12-month trailing basis using Adjusted EBITDA (a non-IFRS performance measure) divided by net interest expense. Granite believes the interest coverage ratio is useful in evaluating the Trust’s ability to meet its interest expense
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