First Capital Real Estate Investment Trust · TSX:FCR.UN
First Capital Real Estate Investment Trust — Q3 2022 Earnings Presentation
72 slides from First Capital Real Estate Investment Trust's earnings presentation, Nov 2, 2022
Slide 1: Q3 2022 Investor Presentation
Q3 2022 Investor Presentation
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 REIT (“Fir
Slide 3: Table of Contents
TABLE OF CONTENTS 1.0 1.0 Company Snapshot ....……………………………………………………………………………........................ XX 4 2.0 2.0 Highlights - Recent Financial and Operating Results ..….….….….….….……….………….......... 5–7 3.0 Thriving Neighbourhoods …………………….………………………………………………………………...... 3.0 XX8 -–XX 19 4.0 4.0 Densi
Slide 4: Company Snapshot
1.0 COMPANY SNAPSHOT (TSX: FCR.UN) First Capital owns, operates and develops grocery-anchored, open-air centres in neighbourhoods with the strongest demographics in Canada. 145 Major market 22.2m sf neighbourhoods of gross leasable area focus (19.3m sf at FCR share) $7.7b enterprise value Super Urba
Slide 5: Highlights - Recent Financial and Operating Results
2.0 Highlights - Recent Financial and Operating Results
Slide 6: Highlights – Q3 2022
2.0 HIGHLIGHTS – Q3 2022 Announced reinstatement and doubling of distribution to unitholders to $0.072 monthly (from $0.036), $0.86 annually (from $0.43) on September 15, 2022 Announced the Enhanced Capital Allocation and Portfolio Optimization Plan on September 22, 2022 Q3 2022 FFO per unit(1) was
Slide 7: Highlights – Q3 2022 Balance Sheet, Liquidity and Asset Quality
2.0 HIGHLIGHTS – Q3 2022 BALANCE SHEET, LIQUIDITY AND ASSET QUALITY Maintaining a Strong Balance Sheet and Liquidity Position • $859m of cash and undrawn credit facilities, as at September 30, 2022 • Unencumbered properties with an IFRS value of ~$6.8b (70% of total assets) • Q3 2022 AFFO payout rat
Slide 8: Thriving Neighbourhoods
3.0 Thriving Neighbourhoods First Capital 8
Slide 9: Neighbourhood Investment Strategy
3.0 NEIGHBOURHOOD INVESTMENT STRATEGY Through the expertise and collaboration of our team, we create thriving properties which generate value for businesses, investors and our neighbourhoods. Thriving properties…Thriving neighbourhoods. • Invest in high-quality, grocery anchored and mixed-use proper
Slide 10: Enhanced Capital Allocation & Portfolio Optimization Plan
3.0 ENHANCED CAPITAL ALLOCATION & PORTFOLIO OPTIMIZATION PLAN • Near the end of the third quarter, the Trust announced its Enhanced Capital Allocation and Portfolio Optimization Plan, which aims to monetize more than $1 billion of typically low-and-no-yielding, and sought-after assets over a two-yea
Slide 11: Thriving Neighbourhoods
3.0 THRIVING NEIGHBOURHOODS Proximity to transit, “Walk Score”, and most importantly population density are key criteria by which we evaluate the potential of our neighbourhoods. We have significantly improved these metrics over time through our investment and disposition activity and we intend to m
Slide 12: Thriving Neighbourhoods – Fair Values Across Canada's Major Cities
3.0 THRIVING NEIGHBOURHOODS – FAIR VALUES ACROSS CANADA’S MAJOR CITIES Vancouver, Calgary, Western Canada Central Canada Toronto Eastern Canada Montreal, Ottawa Edmonton Neighbourhoods 40 Neighbourhoods 65 Neighbourhoods 40 GLA 6.2m GLA 8.5m GLA 4.6m Fair Value % 30% Fair Value % 55% Fair Value % 15
Slide 13: Taking a High Quality Portfolio On to New Heights
3.0 TAKING A HIGH QUALITY PORTFOLIO ON TO NEW HEIGHTS $2.7b of investment activity in 2019 to YTD 2022 2019 – YTD 2022 5km Average 5km Average $ Amount Population Household Income Acquisitions $552m 532,000 $144,000 Development Spend $490m 422,000 $128,000 Investment Total $1,042m 480,000 $136,000 D
Slide 14: North American Leader in Population Density
3.0 THRIVING NEIGHBOURHOODS - NORTH AMERICAN LEADER IN POPULATION DENSITY FCR Portfolio Demographic Metrics versus Peer Group: Q3 2022 (1) $129,000 US $131,500 300,000 $116,500 151,500 US Peers (2) CDN Peers (3) 146,500 US Peers ** Q3 2022 US Peers (2) CDN Peers (3) Q3 2022 US Peers (2) CDN Peers (3
Slide 15: Strong Historical Growth in NAV per Unit
3.0 STRONG HISTORICAL GROWTH IN NAV PER UNIT +3.8% CAGR 2016 – Q3 2022 $24.26 $23.47 $23.39 $22.59 $22.34 $21.85 $19.53 $18.25 2015 2016 2017 2018 2019 2020 2021 Q3 2022 First Capital 15
Slide 16: Solid Long Term Performance; Resiliency in the Face of Adversity
3.0 SOLID LONG TERM PERFORMANCE; RESILIENCY IN THE FACE OF SIGNIFICANT ADVERSITY Same Property NOI Growth 8.0% 2.9% 10-year 6.0% 4.0% 5.7% 4.4% pre-pandemic average (2010-2019) 2.0% 2.6%(2) 0.0% 2.5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD 2022 -2.0% -2.6%(1) 13-year average,
Slide 17: Consistently High Performance in Renewal Leasing Spreads
3.0 CONSISTENTLY HIGH PERFORMANCE IN RENEWAL LEASING SPREADS Lease Renewal Rate Increases (1) 12.0% 9.2% 10-year 10.0% 9.3%(2) pre-pandemic average (2010-2019) 8.0% 6.0% 9.2% 13-year average, 4.0% including pandemic years 2.0% (2010-YTD 2022) 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 18: Top 20 Retail Tenants
3.0 TOP 20 RETAIL TENANTS Contribute 45% of annualized minimum rent (AMR) Investment Investment Rank # Tenant AMR Rank # Tenant AMR Grade Grade 1. 10.4% 11. 1.4% 2. 5.5% 12. 1.4% 3. 3.3% 13. 1.4% 4. 2.6% 14. 1.3% 5. 2.3% 15. 1.3% 6. 2.0% 16. 1.1% - 7. 1.9% - 17. 1.1% - 8. 1.8% 18. 1.1% 9. 1.7% 19. 1
Slide 19: Strategic and Diversified Retail Tenant Mix
3.0 STRATEGIC AND DIVERSIFIED RETAIL TENANT MIX % of Rent # of locations Grocery Stores 17.3 124 Medical, Professional & 15.7 1,301 Personal Services QSR, Chains and Cafes 13.4 911 Other Necessity-Based 12.0 378 Retailers Pharmacies 9.2 118 Other Tenants 8.7 466 Banks & Credit Unions 8.1 184 Value-B
Slide 20: Density Pipeline and Development
4.0 Density Pipeline and Development
Slide 21: Significant Future Density Pipeline
4.0 SIGNIFICANT FUTURE DENSITY PIPELINE Total development inventory of 23.8m sf Included IFRS values are: Future incremental 7.2m sf; value of $531m 1071 King St West Toronto, ON Yonge & Roselawn Toronto, ON density Properties 268k sf; value of $76m under construction Residential 364k sf; value of $
Slide 22: Future Incremental Density - Entitlements Program
4.0 FUTURE INCREMENTAL DENSITY - ENTITLEMENTS PROGRAM • FCR submitted entitlement applications for 15.3m sf or 64% of its incremental density pipeline • FCR expects to recognize increased IFRS values as previously submitted and future submissions are approved • 8.2m sq ft zoned to date; expecting up
Slide 23: Active Developments
4.1 Active Developments @o First WD CAPITAL
Slide 24: Active Developments - Developing in Thriving Neighbourhoods
4.1 ACTIVE DEVELOPMENTS - DEVELOPING IN THRIVING NEIGHBOURHOODS Active Developments = 632k sf Stanley Park Mall (GLA 61k sf) Kitchener, ON 200 West Esplanade (GLA 29k sf (1)) North Vancouver, BC Newly constructed Canadian Tire store 75 purpose built rental suites & ancillary retail Cedarbrae Mall (G
Slide 25: Active Developments - Developing in Thriving Neighbourhoods
4.1 ACTIVE DEVELOPMENTS - DEVELOPING IN THRIVING NEIGHBOURHOODS Edenbridge Kingsway (GLA 126k sf (1)) Toronto, ON 400 King Street West (GLA 164k sf (1)) Toronto, ON 210 luxury condominiums & ancillary retail 612 luxury condominiums & ancillary retail 138 Yorkville (GLA 115k sf (1)) Toronto, ON 65 ul
Slide 26: Near, Medium & Long Term Developments
4.2 Near, Medium & Long Term Developments
Slide 27: Near, Medium & Long Term Developments
4.2 NEAR, MEDIUM & LONG TERM DEVELOPMENTS 1071 King - Liberty Village (GFA 196k sf) Toronto, ON Yonge & Roselawn (GFA 513k sf) Toronto, ON Purpose-built rental Purpose-built rental & ancillary retail 2150 Lake Shore Blvd W (GFA 7.5m sf) Toronto, ON Master-planned, mixed-use high density neighbourhoo
Slide 28: Environmental, Social and Governance (ESG)
5.0 Environmental, Social and Governance (ESG)
Slide 29: ESG Initiatives
5.0 ESG INITIATIVES 2022 2022 Green Lease Leader by Institute for Markey Transformation Achieved GRESB 4-star rating Score 82 (2022), up from 77 (2019) AA High 2022 ESG scores (1) Environmental: 2 Social: 2 Governance: 2 ESG Rating (2021) (2021) (1) On a scale of 1-10, with 1 being the highest First
Slide 30: ESG Initiatives
5.0 ESG INITIATIVES Winner in the Canada’s Canada’s Top Small & Greenest Employers First Canadian REIT to be a Medium Employers Competition signatory in support of the Task Force on Climate- Related Financial Disclosure Recognized as one of Honouree in the Greater Toronto’s Globe & Mail’s Top 100 Em
Slide 31: ESG Initiatives
5.0 ESG INITIATIVES 170 Properties certified Received 2 “The Outstanding Building of 17.8m sf (2021) the Year” Award and Certificate of Excellence at 3 of our properties. 7.1m sf 126 LEED-certified projects Achieved WELL Health- Safety Rating (35 properties) > 4.4m sf (2021) First Capital 31
Slide 32: ESG Roadmap (2020-2024)
5.0 ESG ROADMAP (2020-2024) Environment Social Governance • Satisfied 2030 science-based • Launched the FCR Thriving • Aligned disclosures with the GHG reduction target, with Neighbourhoods Task Force on Climate- goal of net-zero emissions Foundation, with focus on 4 related Financial Disclosures by
Slide 33: ESG Initiatives
5.0 ESG INITIATIVES Need access to data (Melissa) • Achieved 14% decrease in Greenhouse Gas (GHG) GHG Emissions emissions (2017 – 2021) 24,500 • Achieved 7% decrease in 2020 energy consumption 24,000 over 5 years (2017-2021) 23,500 • Released our first Report on the Taskforce for Climate- Related Fi
Slide 34: Enhancing Thriving Neighbourhoods Through Public Art
5.0 ENHANCING THRIVING NEIGHBOURHOODS THROUGH PUBLIC ART 31 Public Art Installations commissioned across our portfolio Supporting Public Art partnerships with First Capital 34
Slide 35: Strong Gender Diversity Metrics Across the Organization
5.0 STRONG GENDER DIVERSITY METRICS ACROSS THE ORGANIZATION EXECUTIVE BOARD MEMBERS MEMBERS 33% Women 67% Men 33% Women 67% Men Honouree in the Globe and Mail’s “2021 Women Lead Here” list MANAGEMENT TOTAL ROLES EMPLOYEES (2nd consecutive year) Over 50% of management positions are held by females 61
Slide 36: FCR Equity, Diversity & Inclusion (ED&I)
5.0 FCR EQUITY, DIVERSITY & INCLUSION (ED&I) First Capital is committed to sustaining an equitable, diverse, and inclusive culture of belonging, where all employees have an equal opportunity to thrive, love what they do and grow their careers. First Capital continues to evolve and build an action fr
Slide 37: FCR Thriving Neighbourhood Foundation
5.0 FCR THRIVING NEIGHBOURHOOD FOUNDATION • The FCR Thriving Neighbourhoods Foundation is an employee-led organization that supports registered charities and philanthropic initiatives that support the neighbourhoods in which we operate. • Since its inception in 2020, we’ve been focused on food insec
Slide 38: FCR Thriving Neighbourhood Foundation
5.0 FCR THRIVING NEIGHBOURHOOD FOUNDATION 2021 Achievements • In the Fall of 2021, the Foundation partnered with Canada’s largest food rescue organization, Second Harvest, to help combat food insecurity. • Donations from our staff and corporate partners helped raise $338,000, to provide meals for Ca
Slide 39: Financial Strength and Flexibility
6.0 Super Financial Strength Urban and Flexibility Neighbourhoods
Slide 40: Capital Structure
6.0 CAPITAL STRUCTURE (1) $9.5B $7.7B Gross Asset Value (3) Enterprise Value $1.4B $b WAIR (2) Secured Debt Mortgages 1.3 3.6% 18% Secured Facilities 0.1 3.7% Total Secured 1.4 3.6% $3.1B Unsecured Debentures 2.2 4.0% Unsecured Debt 40% Unsecured Term Loans 0.7 3.4% Unsecured Revolving Facilities 0.
Slide 41: Financial Strength and Flexibility
6.0 FINANCIAL STRENGTH AND FLEXIBILITY As at Q3 2022 2021 2020 2019 2018 2017 Unsecured revolving credit facilities $800 $800 $800 $800 $800 $800 (million) 70% Unencumbered assets (billion) $6.8 $7.4 $7.0 $7.0 $7.3 $7.4 of Q3 2022 assets unencumbered Unencumbered assets to unsecured 2.2x 2.3x 2.1x 2
Slide 42: Well-Staggered Term Debt Maturities ($M)
6.0 WELL-STAGGERED TERM DEBT MATURITIES ($M) Unsecured Term Loans WAIR 3.8% $800 Mortgages 5.5% Term to Maturity 3.6 years Senior Unsecured Debentures 4.9% 5.0% $700 Weighted Average Effective Interest % 95% of Term Debt is Fixed Rate 4.5% 4.2% 4.2% 4.1% $600 4.0% 4.0% 3.7% 3.6% 3.4% 3.5% 3.5% $500
Slide 43: OFFO Payout Ratio: Maintaining Financial Flexibility
6.0 OFFO PAYOUT RATIO: MAINTAINING FINANCIAL FLEXIBILITY TO ADVANCE OUR STRATEGIC OBJECTIVES $350 90% 84% 82% $302 $300 $287 78% $284 80% 74% $250 $236 71% $237 $261 69% $225 70% $200 $193 60% $150 50% $100 40% 41% 40% $50 $0 30% 2015 2016 2017 2018 2019 2020 2021 YTD 2022 FFO excl OGLE/unit $1.05 $
Slide 44: Appendix I: Profiling Thriving Neighbourhoods
Appendix I Profiling Thriving Neighbourhoods – Super Urban and Top Tier Suburban
Slide 45: Bloor-Yorkville
Super Urban Neighbourhood Bloor-Yorkville Toronto, ON Demographics 5KM 2021 Estimates Population 744,000 Average Household Income $148,000 Gross Leasable Area Yorkville Village 315,000 sf One Bloor East 85,000 sf Hazelton Hotel 49,000 sf Total Bloor/Yorkville 449,000 sf Future Density 115,000 sf Key
Slide 46: Super Urban Neighbourhood - Bloor-Yorkville
SUPER URBAN NEIGHBOURHOOD - BLOOR-YORKVILLE Bloor-Yorkville A 138 Yorkville Avenue (Development) B Yorkville Village (Retail) C Hazelton Hotel First Capital 46
Slide 47: Yorkville Village
Hazelton Hotel & ONE Restaurant Yorkville Village Hazelton Hotel achieves 5 star rating in Forbes Travel Guide April 2022 First Capital 47
Slide 48: Yorkville Village New Tenant Opening
New Tenant Opening Yorkville Village The Webster successfully opens in Canada’s top real estate November 2021 Opening First Capital 48
Slide 49: Liberty Village
Super Urban Neighbourhood Liberty Village Toronto, ON Property Statistics 5KM 2021 Estimates Population 568,000 Average Household Income $126,000 Gross Leasable Area Retail GLA 395,000 sf Residential GLA (subject to firm sale agreement) 328,000 sf Office GLA 109,000 sf Total GLA 832,000 sf Acreage 1
Slide 50: King High Line
Super Urban Neighbourhood King High Line Liberty Village, Toronto, ON Gross Leasable Area (at 100%) Retail GLA 154,000 sf Property Statistics FCR Interest 100% Commercial Key Tenants First Capital 50
Slide 51: Olde Oakville Market Place
Top Tier Suburban Neighbourhood Olde Oakville Market Place Oakville, ON Demographics 5KM 2021 Estimates Population 122,000 Average Household Income $212,000 Gross Leasable Area Retail GLA 125,000 sf Key Tenants First Capital 51
Slide 52: Griffintown
Super Urban Neighbourhood Griffintown Montreal, QC Demographics 5KM 2021 Estimates Population 424,000 Average Household Income $108,000 Retail GLA 255,000 sf Key Tenants First Capital 52
Slide 53: Appleby Village
Top Tier Suburban Neighbourhood Appleby Village Burlington, ON Demographics 5KM 2021 Estimates Population 98,000 Average Household Income $146,000 Gross Leasable Area Retail GLA 210,000 sf Key Tenants First Capital 53
Slide 54: Mount Royal Village
Calgary's Premier Super Urban Neighbourhood Mount Royal Village Calgary, AB Demographics 5KM 2021 Estimates Population 229,000 Average Household Income $150,000 Gross Leasable Area 375,000 sf Acreage 4.1 Key Tenants First Capital 54
Slide 55: Pemberton Plaza
Top Tier Suburban Neighbourhood Pemberton Plaza North Vancouver, BC Demographics 5KM 2021 Estimates Population 203,000 Average Household Income $125,000 Gross Leasable Area Retail GLA 77,000 sf Key Tenants First Capital 55
Slide 56: The Brewery District
Super Urban Neighbourhood The Brewery District Edmonton, AB Demographics 5KM 2021 Estimates Population 211,000 Average Household Income $96,000 Gross Leasable Area (at 100%) Retail GLA 261,000 sf Office GLA 37,000 sf Total GLA 298,000 sf FCR Interest 50% Key Tenants First Capital 56
Slide 57: Cranston Market
Top Tier Suburban Neighbourhood Cranston Market Calgary, AB Demographics 5KM 2021 Estimates Population 123,000 Average Household Income $157,000 Gross Leasable Area Retail GLA 84,000 sf Key Tenants First Capital 57
Slide 58: False Creek Village
Super Urban Neighbourhood False Creek Village Vancouver, BC Demographics 5KM 2021 Estimates Population 438,000 Average Household Income $115,000 Retail GLA 63,000 sf Key Tenants First Capital 58
Slide 59: Leaside Village
Top Tier Suburban Neighbourhood Leaside Village Toronto, ON Demographics 5KM 2021 Estimates Population 495,000 Average Household Income $187,000 Gross Leasable Area Retail GLA 119,000 sf Key Tenants First Capital 59
Slide 60: Appendix II: Active & Recent Developments
Appendix II Active & Recent Developments
Slide 61: Station Place
Recent Development Completion Station Place Toronto, ON Demographics 5KM 2021 Estimates Population 272,000 Average Household Income $147,000 Gross Leasable Area (at 100%) Retail GLA 43,000 sf Residential GLA (333 Rental Units) 267,000 sf Total GLA 310,000 sf FCR Interest / 50% partner 35% /_________
Slide 62: Centre Commercial Wilderton
Recent Development Completion Future Centre Commercial Wilderton Montreal, QC Demographics 5KM 2021 Estimates Population 638,000 Average Household Income $102,000 Property Statistics Pre-redevelopment GLA 112,000 sf Post Redevelopment GLA Retail GLA (FCR Interest 100%) 125,000 sf Residential GLA 500
Slide 63: Stanley Park Mall
Active Development Stanley Park Mall Kitchener, ON Demographics 5KM 2021 Estimates Population 132,000 Average Household Income $90,000 Gross Leasable Area (at 100%) Square Feet Under Active Development 61,000 sf Retail GLA 189,000 sf Target Completion Date H2 2023 • Construction of a new purpose bui
Slide 64: 200 West Esplanade
Active Development 200 West Esplanade North Vancouver, BC Demographics 5KM 2021 Estimates Population 264,000 Average Household Income $116,000 Gross Leasable Area (at 100%) Residential GLA (75 Rental Units) 48,000 sf Retail GLA 10,000 sf Total GLA 58,000 sf FCR Interest 50% 50% Partner Rendering Tar
Slide 65: Cedarbrae Mall
Active Development Cedarbrae Mall Toronto, ON Demographics 5KM 2021 Estimates Population 296,000 Average Household Income $89,000 Gross Leasable Area (at 100%) Square Feet Under Active Development 137,000 sf Retail GLA 476,000 sf Target Completion Date H1 2024 • An extensive retail renovation within
Slide 66: Edenbridge Kingsway
Active Development Edenbridge Kingsway Humbertown, Toronto, ON Demographics 5KM 2021 Estimates Population 359,000 Average Household Income $135,000 Phase 1 Site Area 1.8 acres (Phase 1) Gross Leasable Area (at 100%) Retail GLA 8,000 sf Residential GLA 244,000 sf Total GLA 252,000 sf 100% Commercial
Slide 67: 400 King Street West
Active Development 400 King Street West Toronto, ON Demographics 5KM 2021 Estimates Population 582,000 Average Household Income $139,000 Gross Leasable Area (at 100%) Residential GLA 432,000 sf Non-Residential GLA 37,000 sf Total GLA 469,000 sf FCR Interest 35% 50% Partner Rendering Target Completio
Slide 68: 138 Yorkville Avenue
Active Development 138 Yorkville Avenue Toronto, ON Demographics 5KM 2021 Estimates Population 775,000 Average Household Income $147,000 Gross Leasable Area (at 100%) Residential GLA 272,000 sf Retail GLA 41,000 sf Total GLA 313,000 sf FCR Interest (1) 33%/100% Co-development Partner 33% Passive Par
Slide 69: 1071 King Street West
Near Term Development 1071 King Street West Toronto, ON Demographics 5KM 2021 Estimates Update Picture Population 579,000 Average Household Income $127,000 Gross Floor Area (at 100%) Residential GFA (227 Rental Units) 191,000 sf Retail GFA 5,000 sf Total GFA 196,000 sf FCR Interest 67% 33% Partner R
Slide 70: Yonge & Roselawn
Medium & Long Term Development Yonge & Roselawn Toronto, ON Demographics 5KM 2021 Estimates Population 485,000 Average Household Income $209,000 Current Retail GLA 42,000 sf Future Residential GFA (~539 Rental Units) 443,000 sf Future Retail GFA 70,000 sf Total Future GFA 513,000 sf FCR Interest 100
Slide 71: 2150 Lake Shore Blvd W
Medium & Long Term Development 2150 Lake Shore Blvd W Former Christie Cookie Site, Toronto, ON Demographics 5KM 2021 Estimates Population 263,000 Average Household Income $127,000 Gross Floor Area (at 100%) Residential GFA ( ~7,500 Units) 6,300,000 sf Non-Residential GFA 1,200,000 sf Total GFA 7,500
Slide 72: Contact: First Capital
Adam Paul President & CEO Neil Downey Executive VP, Enterprise Strategies & CFO First Capital Shops at King Liberty 85 Hanna Ave, Suite 400 Toronto, ON Tel: 416-504-4114 fcr.ca TSX: FCR.UN
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