Riocan Real Estate Investment Trust · TSX:REI.UN
Riocan Real Estate Investment Trust — Q3 2021 Earnings Presentation
23 slides from Riocan Real Estate Investment Trust's earnings presentation, Nov 10, 2021
Slide 1: Always Adapting, Looking Ahead: Q3 2021 Conference Call
ALWAYS ADAPTING CONFERENCE CALL LOOKING AHEAD Q3 2021 November 10, 2021
Slide 2: Non-GAAP Measures and Forward-Looking Information
NON-GAAP FORWARD-LOOKING MEASURES INFORMATION RioCan’s consolidated financial Certain information included in this presentation contains forward-looking statements within the meaning of applicable securities statements are prepared in accordance laws including, among others, statements concerning ou
Slide 3: Business Overview
642 King St. Jonathan Gitlin, President & Chief Executive Officer Q3 2021 Conference Call | RioCan | 3 BUSINESS OVERVIEW
Slide 4: Tenant Mix
RioCan properties attract resilient tenants Well-positioned to capitalize on pent-up consumer demand Entertainment / Hobby / Electronics / Books 3.0% Movie Theatres Department Stores (i) 4.0% 0.2% Sit-down Restaurants 5.9% Tenant Grocery / Pharmacy / Liquor -50 bps Mix* vs. YE Apparel 6.4% 16.7% 202
Slide 5: RioCan - located in Canada's most in-demand markets
RioCan - located in Canada’s most in-demand markets Prime, high density, transit- oriented areas where Canadians shop, live and work 91.4% Dense Population 204,683 (1) People Strong Household Incomes $124,366 (1) Last Mile Hub Ideal for micro-fulfillment and Buy Online Pick-up In Store 6 assets (2)
Slide 6: 2021 Results: Embedding best practices in everything we do
Embedding best practices in everything we do Q3 2021 Highlight Real Estate Assessment Achieved second consecutive 5 Star Rating Ranked 2nd amongst North American Peers Public Disclosure #1 amongst Canadian peers for the second year in a row Development Assessment 2021 Results Regional Sector Leader
Slide 7: Resilient rent collection
Resilient rent collection (1) Trending towards pre-pandemic norms 100% 0.3% 0.7% 1.2% 3.4% 2.4% 1.1% 1.8% 0.9% 0.1% 0.5% 0.5% 95% 90% 96.1% 96.4% 96.5% 98.1% 85% 80% 75% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Remaining Rent To Be Collected Provision Deferred Rents Cash Collected 1) Latest four quarters as
Slide 8: Positive trends in occupancy
Positive trends in occupancy Breadth and quality of tenants support growth and resilience Committed and In-Place Occupancy Total Commercial Portfolio 96.4% 96.1% Compared to Q2 2021 committed and 96.0% in-place occupancy at RioCan’s 95.8% commercial properties increased by 30 95.7% 95.6% bps and 50
Slide 9: Well-positioned portfolio retains and attracts tenants
Well-positioned portfolio retains and attracts tenants 1.0 million square feet of new and renewal leases executed at robust leasing spreads 88.4% 89.2% Renewal 7.6% Retention Leasing Ratios 4.6% Spreads Q3 2020 Q3 2021 Q3 2020 Q3 2021 9.2% New 7.2% Blended 7.5% Leasing Leasing 5.5% Spreads Spreads Q
Slide 10: RioCan Living - high quality rental residences
RioCan LivingTM - high quality rental residences Steady rent collection of ~ 99% for residential rental in Q3 2021 eCentralTM, Toronto, ON FrontierTM, Ottawa, ON BrioTM, Calgary, AB PivotTM, Toronto, ON Litho.TM, Toronto, ON • 466 unit, 36-storey • 228 unit, 23-storey • 163 unit, 12-storey • 361 uni
Slide 11: Litho.
• 9-storey, 210 unit residential rental • ~28k sq. ft. of retail • ~37% leased (1) • Launched in July 2021 1) As of November 9, 2021 TORONTO, ON LITHO. Q3 2021 Conference Call | RioCan | 11
Slide 12: Strada
• 8-storey, 61 unit residential rental • ~6k sq. ft. of retail • Expected to commence occupancy in Q4 2021 TORONTO, ON STRADA Q3 2021 Conference Call | RioCan | 12
Slide 13: Condo / Townhouse development and value creation
Condo / Townhouse development and value creation Alternate source of income and cash flow providing efficient capital recycling Townhomes Condominiums Condominiums Condominiums U.C. UptownsTM U.C. TowerTM 11 YV Queen & AshbridgeTM ~95% Pre-Sold Sales Sold Out Sold Out ~99% Pre-Sold (399 Units) Statu
Slide 14: Condo / Townhouse recent launches
Condo / Townhouse recent launches Alternate source of income and cash flow providing efficient capital recycling Townhomes Condominiums Condominiums Condominiums U.C. Towns 2 U.C. Tower 2 VergeTM East Tower Verge West Tower Sales Sold Out ~78% Pre-Sold ~ 88% Pre-Sold (5) ~ 96% Pre-Sold (5) Status (1
Slide 15: Financial Review
RioCan Hall Dennis Blasutti, Chief Financial Officer FINANCIAL REVIEW Q3 2021 Conference Call | RioCan | 15
Slide 16: Third Quarter 2021 Results
Third Quarter 2021 Results Driven by robust portfolio fundamentals FFO per Unit Same Property NOI $0.41 $0.40 $0.40 Q3 2020 Q2 2021 Q3 2021 7.8% 6.6% Q3 2020 Q2 2021 Q3 2021 -9.1% Q3 2021 Conference Call | RioCan | 16
Slide 17: Strong base of resilient tenants
Strong base of resilient tenants Improved tenant fundamentals with easing of pandemic restrictions Rent Collection by Tenant Type (1) Strong tenants National office and essential / necessity / value and (% billed gross rent) specialty retail tenants with strong rent paying ability and includes resid
Slide 18: Capital recycling surfaces value
Capital recycling surfaces value Repatriating equity capital for higher return opportunities Dispositions Closed in Closed in Firm & Weighted Average Q4 2021 Total Q1, Q2 & Q3 2021 (as of November 9, 2021) Conditional (1) Cap Rate (in millions) (2) Income Producing Properties $394.1M $149.3M $124.0M
Slide 19: Value creation through mixed-use development
Value creation through mixed-use development Transforming RioCan through excess density on existing income producing properties Total Pipeline by Zoning Status TOTAL ZONING ENTITLEMENT 20.5M SF • ~100% located in Canada’s six major 13.6M SF 33.7% markets(1) 40 projects 6.9M SF • ~75% located in the
Slide 20: RioCan Living's Expanding Residential Rental Portfolio
RioCan Living’s Expanding Residential Rental Portfolio Increasingly mixed-use portfolio diversifies income stream Gloucester Phase One (Frontier) Dupont Street (Litho.) Westgate Phase One TM (Rhythm ) Gloucester Phase Two TM (Latitude ) Yonge & Eglinton (eCentral) Yonge & Shepard College & Manning B
Slide 21: Capital Structure Metrics
Disciplined and prudent balance sheet management Ample liquidity bolstered by large pool of unencumbered assets Target Q3 2021 (1) Capital Structure Metrics Liquidity N/A $1.1B (2) Debt to Adjusted EBITDA 8.0x 9.97x (3) Debt to Total Assets 38% - 42% 44.4% Interest Coverage >3.00x 3.10x Debt Service
Slide 22: Jonathan Gitlin, President & Chief Executive Officer
642 King St. Jonathan Gitlin, President & Chief Executive Officer Q3 2021 Conference Call | RioCan | 22
Slide 23: RIO*CAN’
RIO*CAN’
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