First Capital Real Estate Investment Trust · TSX:FCR.UN
First Capital Real Estate Investment Trust — Q2 2019 Earnings Presentation
18 slides from First Capital Real Estate Investment Trust's earnings presentation, Jul 31, 2019
Slide 1: Q2 2019
Q2 2019
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 Realty Inc
Slide 3: Opening Remarks
Opening Remarks ADAM PAUL PRESIDENT & CEO
Slide 4: Q2 2019 Highlights
Q2 2019 Highlights Average Net NAV per Occupancy Rental Rate share Key Metrics 96.8% $20.58 $22.88 Year over Year Growth 50bps 3.1% 3.0% Shops at King Liberty Griffintown Centre Toronto, ON Montreal, QC 4
Slide 5: Financial Overview
Financial Overview KAY BREKKEN EVP & CHIEF FINANCIAL OFFICER
Slide 6: Q2 2019 FFO Results
Q2 2019 FFO Results Q2 FFO per share of $0.310 Q2 2019 Q2 2018 Variance % Change YTD 2019 YTD 2018 Variance % Change FFO/share $0.310 $0.321 ($0.011) (3.4%) $0.605 $0.622 ($0.017) (2.7%) FFO ($ millions) $70.2 $79.1 ($8.9) (11.3%) $145.9 $153.1 ($7.2) (4.7%) Major Contributors (YOY change in $ milli
Slide 7: Q2 2019 Highlights – Operating Metrics
Q2 2019 Highlights – Operating Metrics Q2 2019 Same Property NOI increase of 1.9%, YTD 2019 up 3.5% Same Property NOI Growth Q2 2019 Q2 2018 (1) YTD 2019 YTD 2018 (1) Same Property – Stable 0.9% 4.1% 2.7% 3.5% Total Same Property 1.9% 4.2% 3.5% 3.5% Total Same Property (excluding lease termination f
Slide 8: Q2 2019 Highlights – Operating Metrics
Q2 2019 Highlights – Operating Metrics Q2 2019 strong lease renewal rate increases of 11.9% and 14.6% Q2 2019 Q2 2018 YTD 2019 YE 2018 Total Same Other Property Total Total Portfolio (GLA reported at FCR %) Property Categories Portfolio Renewal leasing (sq. ft.) 494,000 96,000 590,000 1,045,000 1,20
Slide 9: Q2 2019 Highlights – Operating Metrics
Q2 2019 Highlights – Operating Metrics Average Net Rental Rate grew 3.1% from Q2 2018 Q2 2019 Q2 2018 YTD 2019 2018 Total Same Other Property Total Total Portfolio (GLA reported at FCR %) Property Categories Portfolio Developments coming online (sq. ft.) N/A 71,000 71,000 78,000 81,000 283,000 Devel
Slide 10: Q2 2019 Highlights – Operating Metrics
Q2 2019 Highlights – Operating Metrics Occupancy rate up 50 basis points from Q2 2018 to record level of 96.8% Q2 2019 Q2 2018 Q1 2019 Total Same Total Total Same Total Total Same Total (GLA reported at FCR %) Property Portfolio Property (1) Portfolio Property (1) Portfolio Gross Leasable Area (sq.
Slide 11: Investment in Development and Redevelopment
Investment in Development and Redevelopment $43.1 million during Q2 2019 Yorkville Village Assets 3080 Yonge Street Toronto, ON Toronto, ON King High Line Edmonton Brewery District Centre Commercial Wilderton Toronto, ON Edmonton, AB Montreal, QC 11
Slide 12: FFO
FFO Q2 FFO per share of $0.310 and YTD FFO of $0.605 ($ millions, except per share amounts) Q2 2019 Q2 2018 Variance YTD 2019 YTD 2018 Variance Net operating income $116.8 $115.0 $1.8 $233.5 $228.2 $5.3 Interest and other income 7.2 8.3 (1.1) 17.6 14.6 3.0 Interest expense (44.5) (38.4) (6.1) (84.4)
Slide 13: Other Gains (Losses) and (Expenses) – FFO
Other Gains (Losses) and (Expenses) – FFO Q2 2019 Other Loss of $0.5 million due to REIT conversion costs; Q2 2018 Other Gain of $2.4 million due to net gains on marketable securities ($ millions) Q2 2019 Q2 2018 Variance YTD 2019 YTD 2018 Variance Realized gain (loss) on marketable securities $− $4
Slide 14: ACFO
ACFO YTD 2019 ACFO of $123M ($ millions) Q2 2019 Q2 2018 Variance YTD 2019 YTD 2018 Variance Cash provided by operating activities $43.1 $51.4 ($8.3) $92.0 $96.8 ($4.8) Add (deduct): Working capital adjustments 32.7 20.7 12.0 40.2 27.9 12.3 Adjustment for equity accounted joint ventures 0.8 1.1 (0.3
Slide 15: 2019 Financing Activities
2019 Financing Activities $850 million of unsecured bank term loans to fund share repurchase Term at Effective Rate $ Millions Issuance YTD 2019 Activity: Total New Mortgages 3.4% 10.0 $392.9 Mortgage Repayments 4.3% ($171.5) Unsecured Bank Term Loans – Fixed 3.3% 5.0 – 7.0 $550.0 Unsecured Bank Ter
Slide 16: Financial Strength and Flexibility
Financial Strength and Flexibility Unencumbered asset pool at $7.0 billion Q2 2019 YE 2018 Unsecured revolving credit facility $800M $800M Unsecured term loans $850M – 67% of total Unencumbered assets ($ billions) assets $7.0 $7.3 Unencumbered assets to unsecured debt 2.0x 2.5x Secured indebtedness
Slide 17: Well-Staggered Term Debt Maturities
Well-Staggered Term Debt Maturities (as at July 31, 2019) 7.0% Millions $900 Weighted Average Fixed Interest Rate 4.0% 93% of Term Debt is Fixed Rate Weighted Average Term to Maturity 5.4 years 6.0% $800 $700 5.0% $600 4.0% $500 $400 3.0% $300 2.0% $200 1.0% $100 $- 0.0% 2019 2020 2021 2022 2023 202
Slide 18: Kay Brekken
Kay Brekken Executive VP & CFO. ~ —- Contactinfo First Capital Realty Inc. ~ ‘Shops at King Liberty 85 Hanna Ave, Suite 400 Toronto, Ontario Tel 416.504.4114 Fax 416.941.1655 www.fer.ca TSX: FCR
First Capital Real Estate Investment Trust — Q2 2019 Earnings Presentation on 6ix