Riocan Real Estate Investment Trust · TSX:REI.UN
Riocan Real Estate Investment Trust — Q2 2020 Earnings Presentation
20 slides from Riocan Real Estate Investment Trust's earnings presentation, Jul 29, 2020
Slide 1: Strengthening Today, Building for Tomorrow: Q2 2020 Conference Call
JULY 29, 2020 STRENGTHENING TODAY, BUILDING FOR TOMORROW Q2 2020 CONFERENCE CALL
Slide 2: Non-GAAP Measures and Forward Looking Information
NON-GAAP MEASURES RioCan’s consolidated financial statements are prepared in accordance with IFRS. Consistent with RioCan’s management framework, management uses certain financial measures to assess RioCan’s financial performance, which are not generally accepted accounting principles (GAAP) under I
Slide 3: Operational Overview
Operational Overview Jonathan Gitlin, President & Chief Operating Officer
Slide 4: Rent Collection During COVID-19
RENT COLLECTION DURING COVID-191 Trending positively as businesses gradually re-open with ~85%2 of tenants currently open Rents Collected Q2 2020 Rents Breakdown (% billed gross rent) (% billed gross rent) ~87% of rent collected or with definitive payment schedule in place 85% Net CECRA Funding, 5.8
Slide 5: Q2 2020 Results
Q2 2020 RESULTS Impacted by circumstances due to COVID-19 pandemic Same Property NOI FFO per unit $0.46 $0.35 3.0% Q2 2020 Q1 2020 Q1 2020 Q2 2020 -10.8% Q2 2020 | RIOCAN | 5
Slide 6: Q2 2020 Results
Q2 2020 RESULTS Solid commercial operating performance Committed Occupancy Blended Leasing Spread 97.3% 96.8% 96.8% 96.4% 7.3% 6.5% 5.6% 5.8% Q1 2020 Q2 2020 Q1 2020 Q2 2020 Major Market Overall Portfolio Q2 2020 | RIOCAN | 6
Slide 7: RioCan Properties Attract Resilient Tenants
RIOCAN PROPERTIES ATTRACT RESILIENT TENANTS Well-positioned to meet current consumer needs Tenant mix Low Exposure to Declining Retail Concepts Annualized % Confirmed closures Retailers restructuring total rental annualized % total since March 30, 2020 revenue rental revenue Globo Shoes1 0.2% -% L'A
Slide 8: Major Market Focused Portfolio
MAJOR MARKET FOCUSED PORTFOLIO Concentrated in transit corridors of Canada’s fastest growing high density urban centers % of Revenues from Major Markets 90.1% 76.1% 2017 Q2 2020 % of Revenues from GTA 52.1% 40.9% Percentage of annualized rental revenue as of June 30, 2020 2017 Q2 2020 Q2 2020 | RIOC
Slide 9: RioCan Living – High Quality Rental Residences
RIOCAN LIVING – HIGH QUALITY RENTAL RESIDENCES Providing additional revenue diversification eCentral, Toronto, ON Frontier, Ottawa, ON Brio, Calgary, AB • 228 unit, 23-storey building • 466 units, 36-storey building • 163 unit, 12-storey building • 98.7% leased as of July 28, • 94.2% leased as of Ju
Slide 10: More Residential to Come
MORE RESIDENTIAL TO COME In demand residential in prime, transit-oriented locations ~2,7001 residential rental ~8401 units ready to rent ~3,5001 condominium or units completed or under in the next 12 months townhouse units completed construction or under construction 503 Condominium Units 586 Condom
Slide 11: The Well
THE WELL Flagship urban mixed-use development • Construction continues throughout pandemic • Office Component1: o 23 of 36 storeys achieved o ~84% pre-leased1 o On track for initial tenant possession in 2021 • Retail Component: o In advance discussions with prospective tenants that are well suited t
Slide 12: Path Forward – Our Vision for the Future
PATH FORWARD – OUR VISION FOR THE FUTURE Q2 2020 | RIOCAN | 12
Slide 13: Financing Review
Financing Review Qi Tang Senior Vice President & Chief Financial Officer
Slide 14: Pandemic Related Investment Property Valuation Update
PANDEMIC RELATED INVESTMENT PROPERTY VALUTION UPDATE $452M or 3.1% IFRS Value Write-down in Q2 Breakdown of FV Write-down by Market Breakdown of FV Write-down by Asset Class (% decrease vs. Q1 2020) (% decrease vs. Q1 2020) Montreal Secondary -$18M Markets, Mixed-Use / (-3.9%) -$45M Enclosed, Urban,
Slide 15: Committed to Creating Long-Term Value Through Development
COMMITTED TO CREATING LONG-TERM VALUE THROUGH DEVELOPMENT Virtually all development pipeline located in six major markets – 73% focused in GTA Total Pipeline by Zoning Status (42.7M SF) Application Submitted, 6.7M SF, 16% Zoning Approved, 14.8M SF, 35% Highest zoning entitlements among peers Future
Slide 16: Disciplined and Prudent Balance Sheet Management
DISCIPLINED AND PRUDENT BALANCE SHEET MANAGEMENT Ample liquidity bolstered by large pool of unencumbered assets Capital Structure Metrics Target Q2 20201 Debt to Adjusted EBITDA <8.0x 8.80x2 Debt to Total Assets 38% - 42% 44.4% Interest Coverage >3.0x 3.30x Debt Service Coverage >2.25x 2.78x Fixed C
Slide 17: Ample Liquidity and Laddered Debt Maturity
AMPLE LIQUIDITY AND LADDERED DEBT MATURITY Financial capacity and flexibility to navigate through COVID-19 pandemic • As at June 30, 2020, RioCan had $1.0B of liquidity from the following sources: o $82M from cash and cash equivalents o $872M from undrawn revolving unsecured operating line of credit
Slide 18: Closing Remarks
Closing Remarks Edward Sonshine, O.Ont., Q.C. Chief Executive Officer
Slide 19: Outlook – Same Property NOI and FFO/Unit
OUTLOOK – SAME PROPERTY NOI AND FFO/UNIT 2020E 2021E SPNOI FFO/UNIT SPNOI FFO/UNIT $1.60 Q2 2020 | RIOCAN | 19
Slide 20: 2300 Yonge Street, Toronto, ON
2300 Yonge Street. P.O. Box 2386. Toronto, ON. M4P 1E4 | (T) 1-800-465-2733 or (416) 866-3033
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