Primaris Real Estate Investment Trust · TSX:PMZ.UN
Primaris Real Estate Investment Trust — Q2 2023 Earnings Presentation
16 slides from Primaris Real Estate Investment Trust's earnings presentation, Aug 4, 2023
Slide 1: Enclosed Malls. Open Opportunity.
Enclosed Malls. Open Opportunity. Primaris REIT | August 2023
Slide 2: Caution Regarding Forward-Looking Statements
Forward-Looking Statements and Future Orientated Financial Information Disclaimer: Certain statements included in this presentation constitute ‘‘forward-looking information’’ or CAUTION “forward-looking statements” within the meaning of applicable securities laws. The words “will”, “expects”, “plans
Slide 3: Primaris at a glance: assets, GLA, occupancy, credit rating
BBB (high) 91.0% $3.5B1 3.0B1 Stable Committed Unencumbered Investment Grade Occupancy Total Assets Assets Rating 11.4MSF1 33.3%2 45% - 50% 5.2x2 GLA Debt to Total Target FFO Average Net Debt** to Assets** Payout Ratio** Adjusted EBITDA** 1. Proforma: On July 12, 2023, Primaris completed the acquisi
Slide 4: Acquired Conestoga Mall
Acquired Conestoga Mall • Leading regional enclosed shopping centre in the high growth market of Kitchener-Waterloo, Ontario • Immediately adjacent to Conestoga station, on the 19-station ION light rail mass rapid transit system • $122.0 million in redevelopment invested into the property Waterloo,
Slide 5: Unit Purchase Loan Plan
7 Unit Purchase Loan Plan A Supplemental Plan Designed To Build Wealth For Employees Primaris-sponsored program that provides loans for the purchase of Primaris REIT units Borrow up to 100% of annual base salary or a maximum amount of $100,000 15-year fixed interest rate fully-amortizing loans Fixed
Slide 6: NCIB Compounding Capital at a Rapid Pace
A financial model built for measured amount of Indefinite Buybacks funded through Free NCIB Compounding Capital Cash Flow, on a Leverage Neutral Basis at a Rapid Pace Compounding Capital • Leverage remains Highly Lowest Leverage and FCF available for through Unit neutral Differentiated Free Cash FFO
Slide 7: Current Environment for Canadian Mall Ownership; Goals for 2023
Current Environment for Canadian mall ownership is very favourable Primaris’ Goals for 2023 Limited supply of quality retail space in Canada. There has not been a new mall built in decades, current new construction is 1. very limited, and the majority of available space created by failed department
Slide 8: Conestoga Mall
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Slide 9: Positioned for Growth
Resilience Through Economic Cycles and Poised for Post- Positioned for Growth Pandemic Growth Committed Occupancy COVID-19 Same Properties Cash NOI** Growth Target Sears Departure Departur e 1. Excludes Northland Village which is under redevelopment with plans to convert the property into a mixed-us
Slide 10: Current Markets Demonstrate Strong Growth Characteristics
Current enclosed mall trade Current Markets Demonstrate areas are expected to grow at 11.1%, far outpacing the Strong Growth Characteristics National average 1. Source: StatsCanada. 10
Slide 11: Positive Leasing Momentum
Strong Large Format Leasing Year-to-Date Momentum with Positive Leasing Momentum High Quality Tenants For the three months ended GLA Weighted Average Lease Weighted Average Net Weighted Average Spread Count June 30, 2023 ('000s of SF) term (in years) Rent per OSF3 on Renewing Rents CRU1 New tenants
Slide 12: Highly Differentiated Financial Model
Best-in-class structure built with flexibility, optionality and liquidity, enabling minimized Highly Differentiated Financial Model cost of capital 33.3%1 5.2x1,2 $3.0B3 BBB (high) 3.4x1 Total Debt to Total Average Net Debt** Unencumbered Unencumbered Assets** to Adjusted Assets Assets to Stable Cap
Slide 13: Board-led ESG Strategic Plan
In early 2023, management and the Board approved our ESG Strategic Plan and 3-year Implementation Roadmap Board-led ESG Strategic Plan CG&N Committee oversees and monitors Primaris' performance against the ESG Strategy • Strategic Plan and Roadmap based on the ESG Materiality Assessment. • Materiali
Slide 14: Strong Q2/23 Results; Raises and Tightens 2023 Guidance
Strong performance has underlined our commitment to, Strong Q2/23 Results; Raises and and confidence in our clear, and focused strategy of acquiring, Tightens 2023 Guidance owning and managing Canadian enclosed shopping centres Growth in Same Properties Cash NOI** 2023 Raises and Tightens +3.4% Same
Slide 15: Investment Proposition
Investment Proposition Implied discount to Net Asset Value** a compelling investment opportunity 39% Upside to NAV** Capital Recycling Convert Occupancy Compounding Increasing Opportunities pandemic lease Improvements Excess Free Rents Upon concessions to Cash Flow1 Renewal market rents 51.9% Curren
Slide 16: Invest With Us
Invest With Us TICKER: PMZ.UN Internally Managed Strong Institutional S&P/TSX Capped REIT Index and S&P/TSX Independent Board Endorsement Composite Index member Total Assets of $3.5 Billion, BBB (high) Stable Investment Grade Providing Scale and Trading Exchange: TSX Credit Rating Liquidity Contact
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