56 slides from First Capital Real Estate Investment Trust's investor presentation, Jul 31, 2019
Slide 1: Investor Presentation Q2 2019
investor presentation 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: Corporate Snapshot (TSX: FCR)
Corporate Snapshot (TSX: FCR) One of the largest owners, developers and operators of necessity-based real estate located in Canada’s most densely populated urban centres • Large urban market focus across Canada • 165 properties • 25.3 million sq. ft. (23.1 million sq. ft. at FCR share) of gross leas
Slide 4: Evolved Investment Strategy
Evolved Investment Strategy Two part strategy: 1. Continue to invest in high-quality, mixed-use properties with the focus on building large positions in targeted high growth urban neighbourhoods 2. Complete strategic dispositions to de-lever post the share repurchase transaction, and to provide capi
Slide 5: Super Urban Neighbourhoods
Super Urban Neighbourhoods Creating high quality, super urban neighbourhoods while enhancing demographic profile 300,000 +20% 265,000 250,000 +20% 207,000 Q4 Q2 2021 2018 2019 Q4 2016 5 Km Population
Slide 6: Best in Class Portfolio
Best in Class Portfolio
Slide 7: Strong Growth in NAV Per Share
Strong Growth in NAV Per Share $22.88 $22.59 +6.7% CAGR $21.85 Since Jan 1, 2016 $19.53 $18.25 2015 2016 2017 2018
Slide 8: Strong Growth in FFO Per Share
Strong Growth in FFO Per Share +6.9% CAGR Since Jan 1, 2016 $1.21 $1.16 $1.11 $0.99 $0.61 2015 2016 2017 2018
Slide 9: Urban Markets with High Barriers to Entry
Urban Markets with High Barriers to Entry Western Canada Central Canada Eastern Canada Edmonton Calgary 10% 9% Vancouver 12% 12% Quebec City 2% Greater Toronto Area 13% Montreal 41% 5% Ottawa Kitchener/Waterloo/Guelph Area 3% PROPERTIES GLA FAIR VALUE% PROPERTIES GLA FAIR VALUE% PROPERTIES GLA FAIR
Slide 10: North American Leader in Population Density
North American Leader in Population Density FCR Portfolio Demographic Metrics vs. its Peer Group: Q2 2019 * 265,000 US$120,000 $113,000 $100,000 153,000 111,000 Q2 US US CdnCdn Q2 US Cdn 2019 Peers Peers**** Peers *** *** Peers 2019 Peers ** Peers *** US Peers ** 5 Km Population 5 Km Household Incom
Slide 11: Super Urban Neighbourhoods
Super Urban Neighbourhoods US Cdn US Peers ** Peers *** Peers ** US Peers **
Slide 12: Premier Portfolio Highest Rents in Sector
Premier Portfolio Highest Rents in Sector FCR rents are 26% higher than peer group average Average rent growth 5 year CAGR • FCR: 2.6% • Peer Group: 1.5% $20.58 $19.26 $18.49* Peer Group Average $15.38 $16.34 $14.97* $13.61 Q2 2019 Base Rent *Crombie and Choice are both average expiring rent, becaus
Slide 13: Industry Leading Performance: Same Property NOI Growth
Industry Leading Performance Total Same Property NOI Growth 5 year 10 year average average 4.0% 2.7% 3.2% 3.5% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1 2019
Slide 14: Industry Leading Performance: Lease Renewal Rate Increases
Industry Leading Performance Lease Renewal Rate Increases 12.0% 5 year 10 year 11.3% average average 8.2% 9.5% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1 2019 Represents increase on total portfolio basis. Includes renewal options, and contractual fixed rate renewa
Slide 15: Strategic and Diversified Tenant Mix
Strategic and Diversified Tenant Mix # of Stores % of Rent Grocery Stores 135 17.4% Medical, Professional & 1,490 15.1% Personal Services Restaurants & Cafes 1,004 14.1% Pharmacies 133 9.1% Banks & Credit Unions 215 8.5% Fitness Facilities 91 3.6% Liquor Stores 101 3.3% Daycare & Learning Centres 10
Slide 16: Top 20 Tenants
Top 20 Tenants Contribute 45% of annualized minimum rent (AMR) Investment Investment Rank #- Tenant AMR Rank # Tenant AMR Grade Grade 1. 9.9%* ✓ 11. 1.5% ✓ 2. 6.1% ✓ 12. 1.2% ✓ 3. 3.7% ✓ 13. 1.2% ✓ 4. 2.8% ✓ 14. 1.2% ✓ 5. 2.6% ✓ 15. 1.1% ✓ 6. 2.1% ✓ 16. 1.1%** - 7. 1.9% ✓ 17. 1.0% - 8. 1.8% - 18. 1.
Slide 17: Super Urban Neighbourhoods
Super Urban Neighbourhoods
Slide 18: Developing in Super Urban Neighbourhoods
Developing in Super Urban Neighbourhoods $78M of Development Spend in H1 2019 Yorkville Village Assets 3080 Yonge Street Dundas & Auckland Toronto, ON Toronto, ON Toronto, ON King High Line Edmonton Brewery District Centre Commercial Wilderton Toronto, ON Edmonton, AB Montreal, QC Future Pipeline: 2
Slide 19: Bloor-Yorkville, Toronto, ON
Super Urban Neighbourhood Bloor-Yorkville, Toronto, ON Property Statistics 3KM AVG Population (2018 Estimates) 312,600 Household Income (average) $137,300 (2018 Estimates) GLA 315,000 One Bloor GLA 85,000 Hazelton Hotel GLA (FCR share) 40,000 Total Bloor/Yorkville 440,000
Slide 20: Recently Completed Re-Developments - Yorkville Village
Super Urban Neighbourhood Recently Completed Re-Developments - Yorkville Village, Toronto Avenue Road New Yorkville Entrance Interior Mall Events Program at Yorkville
Slide 21: Hazelton Hotel, Toronto, ON
Super Urban Neighbourhood Hazelton Hotel, Toronto, ON Hazelton Hotel GLA (FCR Share) 40,000 sq. ft Toronto’s First and Top Performing 5 Star Hotel
Slide 22: Recent Acquisition: 140 Yorkville
Super Urban Neighbourhood Recent Acquisition:140 Yorkville – Mixed Use Development
Slide 23: Yonge and Bloor, Toronto, ON
Super Urban Neighbourhood Yonge and Bloor, Toronto, ON Subject Site: 1 Bloor Street East
Slide 24: One Bloor East, Toronto, ON
Super Urban Neighbourhood One Bloor East, Toronto, ON Property Statistics Retail GLA 85,000 sq. ft. Commercial 52 Stalls Parking
Slide 25: One Bloor East - McEwan
Super Urban Neighbourhood - One Bloor East, Toronto, ON McEwan – 2019 Opening (17,000 sq ft)
Slide 26: One Bloor East - Chick-Fil-A
Super Urban Neighbourhood - One Bloor East, Toronto, ON Chick-Fil-A Canadian Flagship September 2019 Opening
Slide 27: Future Mixed-Use Project Yonge & Roselawn
Super Urban Neighbourhood - Future Mixed-Use Project Yonge & Roselawn, Toronto, ON Demographics 3KM AVG Population (2018 Estimates) 184,700 Household Income (2018 Estimates) $210,300 NORTH 2.05 TORONTO COLLEGIATE acres INSTITUTE
Slide 28: Major Development Project Former Christie Cookie Site
Super Urban Neighbourhood - Major Development Project Former Christie Cookie Site, Toronto, ON Demographics 3KM AVG Population (2018 Estimates) 81,500 Household Income (2018 Estimates) $120,000 50% Partner (non-managing) 28 acres
Slide 29: Former Christie Cookie Site
Super Urban Neighbourhood - Major Development Project Former Christie Cookie Site, Toronto, ON Surrounding Approved High Density 15 Residential Sites Additional Population Growth ~20,000
Slide 30: Mount Royal Village, Calgary, AB
Super Urban Neighbourhood Mount Royal Village, Calgary, AB Demographics 3KM AVG Population (2018 Estimates) 120,000 Household Income (2018 Estimates) $145,000 Total Acreage 4.1 Total GLA 380,000
Slide 31: Mount Royal Village Redevelopment Phase Completed
Super Urban Neighbourhood - Mount Royal Village, Calgary, AB Redevelopment Phase Completed Before
Slide 32: Mount Royal Village Redevelopment Phase Completed
Super Urban Neighbourhood - Mount Royal Village, Calgary, AB Redevelopment Phase Completed GLA 118,000 sq. ft Current
Slide 33: Mount Royal West, Calgary, AB
Super Urban Neighborhood - Mount Royal West, Calgary, AB Development Nearing Completion GLA 98,300 sq. ft. Current
Slide 34: Liberty Village Assets, Toronto, ON
Super Urban Neighborhood Liberty Village Assets, Toronto, ON Demographics 3KM AVG Population (2018 Estimates) 232,200 Household Income (2018 Estimates) $111,500 Total Acreage 14.1 Total GLA 815,000
Slide 35: Liberty Village Assets - King High Line
Super Urban Neighbourhood - Liberty Village Assets, Toronto King High Line Phase Current Property Statistics Acreage 2.8 Residential GLA 320,000 Retail GLA 155,000 Total GLA 475,000 Anchor Tenants
Slide 36: King High Line Phase Under Development
Super Urban Neighbourhood - King High Line Phase Under Development Future
Slide 37: Edmonton Brewery District, Edmonton, AB
Super Urban Neighbourhood Edmonton Brewery District, Edmonton, AB Demographics 3KM AVG Population (2018 Estimates) 89,600 Household Income (2018 Estimates) $89,500 Total Acreage 11.8 Planned GLA upon completion 310,000 Anchor Tenants
Slide 38: Edmonton Brewery District, Edmonton, AB
Super Urban Neighbourhood Edmonton Brewery District, Edmonton, AB
Slide 39: 3080 Yonge St., Toronto, ON
Super Urban Neighbourhood - 3080 Yonge St., Toronto, ON Re-development Nearing Completion Before
Slide 40: 3080 Yonge St. Re-development Nearing Completion
Super Urban Neighbourhood - 3080 Yonge St., Toronto, ON Re-development Nearing Completion Current Demographics 3KM AVG Population (2018 Estimates) 149,200 Household Income (2018 Estimates) $213,800 Total Acreage 2.0 Upon completion 250,000
Slide 41: Centre Commercial Wilderton, Montreal
Super Urban Neighbourhood – Centre Commercial Wilderton, Montreal Re-development Commenced Demographics 3KM AVG Before Population (2018 Estimates) 205,000 Household Income (2018 Estimates) $96,900
Slide 42: Centre Commercial Wilderton, Montreal
Super Urban Neighbourhood – Centre Commercial Wilderton, Montreal Re-development Commenced Future Property Statistics Acreage 4.90 acres Existing GLA 112,000 Post Redevelopment GLA: Retail GLA 130,000 Residential GLA 500,000 Total GLA ~630,000
Slide 43: Significant Future Density Pipeline
Significant Future Density Pipeline Density Pipeline = 23M sq ft • 3.4M sq ft (15%) in IFRS NAV • 0.4M sq ft in active development, 3.0M sq ft at $207M or $69 per sq ft Pursuing 7.5M sq ft of entitlement submissions by December 31, 2019 Yonge & Roselawn, Toronto Christie Cookie, Toronto 1071 King, T
Slide 44: Upcoming Developments
Upcoming Developments Humbertown, Toronto Leaside Village Phase 2, Toronto Phase 2 Wilderton – Phase 2, Montreal 1071 King, Toronto (Liberty Village)
Slide 45: Upcoming Developments
Upcoming Developments Royal Orchard, Thornhill 101 Yorkville, Toronto Yonge & Roselawn, Toronto 140 Yorkville, Toronto
Slide 46: Corporate Social Responsibility
Corporate Social Responsibility
Slide 47: ESG Initiatives
ESG Initiatives 19% decrease in Greenhouse Gas (GHG) emissions from 2012-2017, 199 properties certified despite 11% growth in GLA. 77% of portfolio in GLA 35000 25000000 30000 24500000 123 projects certified 25000 24000000 3.8 Million Sq. Ft. Emissions (tC02e) GLA (ft2) 20000 23500000 15000 23000000
Slide 48: Community Building: FCR Public Arts Program
Community Building FCR Public Arts Program 27 Public Art Installations across our portfolio Public Art Competitions in partnership with:
Slide 49: Canada's Most Gender Diverse Company
Canada’s Most Gender Diverse Company* 55% EXECUTIVE 45% 22% BOARD 78% WOMEN MEN WOMEN MEN MEMBERS MEMBERS 51% MANAGEMENT 49% 61% TOTAL 39% WOMEN ROLES MEN WOMEN EMPLOYEES MEN * As per Canada’s First Gender Diversity ETF (TSX:HERS) – Launched in 2017
Slide 50: Financial Strength and Flexibility
Financial Strength and Flexibility
Slide 51: Capital Structure
Capital Structure Enterprise Value $9.9 Billion Mortgages and Secured Facilities: $1.7 Billion 17% Unsecured Debentures: $2.4 Billion Unsecured Term Loans: 0.9 Billion 35% Unsecured Facilities: 0.1 Billion Total Unsecured $3.4 Billion 48% Equity Capitalization: $4.8 Billion (219.0 Million shares) As
Slide 52: Financial Strength and Flexibility
Financial Strength and Flexibility As at Q2 2019 2018 2017 2016 Unsecured revolving credit facility 67% of $800M $800M $800M $800M total assets Unencumbered assets ($ billions) $7.0 $7.3 $7.4 $6.6 Unencumbered assets to unsecured debt 2.0x 2.5x 2.4x 2.4x Secured debt as % of total assets 16.1% 14.0%
Slide 53: Well-Staggered Term Debt Maturities
Well-Staggered Term Debt Maturities as of June 30, 2019 Unsecured Term Loans 7.0% Weighted Average Fixed Interest Rate 4.0% Millions $900 Weighted Average Term to Maturity 5.2 years Mortgages 93% of Term Debt is Fixed Rate Senior Unsecured Debentures 6.0% $800 Weighted Average Effective Interest % $
Slide 54: Historical Performance: Improving Conservative FFO Payout Ratio
Historical Performance Improving Conservative FFO Payout Ratio $350 84% 82% 82% $302 82% $300 $284 $261 80% $250 $236 78% $220 78% 76% $200 74% 74% $149 $150 71% 72% $100 71% 70% 68% $50 66% $0 64% 2014 2015 2016 2017 2018 H1 2019 FFO (excl OGLE)/share $1.04 $1.05 $1.10 $1.16 $1.21 $0.62 Dividends/s
Slide 55: Outlook
Outlook Best in Class Portfolio: • Creating super urban neighbourhoods by investing in high-quality, mixed-use properties with the focus on building large positions in targeted high growth urban neighbourhoods • Complete strategic dispositions to de-lever post the share repurchase transaction and to
Slide 56: Contact info
wether 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