Automotive Properties Real Estate Investment Trust · TSX:APR.UN
Automotive Properties Real Estate Investment Trust — Investor Presentation (June 2023)
61 slides from Automotive Properties Real Estate Investment Trust's investor presentation, Jun 14, 2023
Slide 1: Automotive Properties REIT Montreal Analyst Tour
Automotive Properties REIT Montreal Analyst Tour June 2023 June 14, 2023
Slide 2: APR's Purpose
APR’s Purpose Vision Statement ▪ APR strives to be the net lease real estate partner of choice for the automotive community while investing in premier locations in growing “Driving Real Estate Forward” metropolitan markets to deliver durable and growing cash flow underpinned by longer-term real esta
Slide 3: REIT Overview
REIT Overview High-quality portfolio of automotive properties in metropolitan markets across Canada Audi Queensway (GTA) GLA by metro (March 31, 2023) Porsche Vancouver (GVA) Ottawa Edmonton 9.3% 6.2% Greater Toronto Area 22.8% Greater Montreal Area 22.4% Remaining Portfolio Vancouver 21.8% 7.1% Cal
Slide 4: APR – Essential Retail, Quality Tenants on Prime Urban Land
APR – Essential Retail, Quality Tenants on Prime Urban Land APR has built a portfolio of 77 properties on over 220 acres (approx. 80% VECTOM) Over the last 8 year since 2015 IPO – tripled assets from < $400m to approx. $1.2B by focusing on: - Quality tenants with multi dealership indemnification and
Slide 5: Canadian Automotive Dealership Industry
Canadian Automotive Dealership Industry 188 Retail Sales ~25% 176 160 162 165 ($billions) 146 151 132 122 113 100 105 92 96 94 96 87 88 83 83 83 Auto industry’s proportion of Canada’s overall retail sales of products and merchandise in 2022 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 6: Strong Lead Tenants
Strong Lead Tenants Tesla ▪ 75+ automotive dealerships, ▪ Leading global electric vehicle maker ▪ 82 automotive dealerships, ▪ One of the largest automotive representing ~35 brands with largest market capitalization of representing ~28 brands dealership groups in North any automotive company America
Slide 7: Stable Growth Platform
Stable Growth Platform (As at March 31, 2023) 5.5 years 4.18% 94% ~ 80% Weighted average Weighted average fixed Portion of total debt at exposure to VECTOM interest rate swap term interest rate fixed interest rates markets and mortgage remaining on debt 10.7 years 2.4% 100% 45.2% Weighted average Q1
Slide 8: Managing Inflation
Managing Inflation REIT Structure and Strategy to Mitigate Inflation • Interest rate swaps and mortgages (as at Mar. 31, 2023) • Weighted average interest rate swap and mortgage term of 5.5 years • 94% of debt fixed through interest rate swaps and mortgages • Contractual rent increases, including CP
Slide 9: Automotive Industry Developments & Evolution
Automotive Industry Developments & Evolution • New entrants expected into NA market from Asia • Consumer buying habits being met by enhanced dealership e-commerce offerings and curbside pick-up and service • Electric vehicles – low penetration, but gradually increasing • EV registrations comprised 5
Slide 10: Acquisition Growth
Acquisition Growth (July 2015 IPO to Present) • 53 properties acquired / four property expansions / two property divestitures • Over $700 million deployed • Added ~1.8 million square feet of GLA to portfolio • Acquisitions indirectly funded by six fully-subscribed equity offerings totaling ~$409.5 m
Slide 11: Sample of Prime Urban Properties
Sample of Prime Urban Properties
Slide 12: Sustainable Income on Prime Land
Sustainable Income on Prime Land 2021 CMA Population Montreal 4,291,732 Ottawa 1,488,307 Toronto 6,202,225 Calgary 1,481,806 Vancouver 2,642,825 Source: Statistics Canada. 2023. Census Profile. 2021 12
Slide 13: Sample Urban Properties - 2022 Demographics Radius
Sample Urban Properties - 2022 Demographics Radius Average Household Income 5-Year 10-Year Property (3 KM) Average (2022) Population Growth Population Growth Hyundai Honda, Gallery $136,498 11.33% 11.33% Audi Vaughan $126,499 12.02% 12.02% Average population Markham Acura $118,524 10.79% 10.79% 230k
Slide 14: Montreal Properties
MONTREAL PROPERTIES
Slide 15: 127,396 24,782 4.67 2.5 61,186 62,705 5.8 4.27 127,615 8.43 26,092 3.9 44,265 3.80
127,396 24,782 4.67 2.5 61,186 62,705 5.8 4.27 127,615 8.43 26,092 3.9 44,265 3.80 30,015 3.02 16,701 1.72 49,737 0.59 665,994 60,850 34,650 47.09 3.68 3.4 15
Slide 16: BMW Laval, Chomedey Toyota, Mazda de Laval, Lexus Laval
BMW Laval, Chomedey Toyota, Mazda de Laval, Lexus Laval (Laval, QC) 16
Slide 17: BMW Laval, Chomedey Toyota, Mazda de Laval, Lexus Laval
BMW Laval Chomedey Toyota Mazda de Laval Lexus Laval (Laval, QC) BMW Laval Chomedey Toyota 17 Mazda Laval Lexus Laval 17
Slide 18: Park Avenue Volvo JLR
Park Avenue Volvo JLR (Brossard, QC) 18
Slide 19: Park Avenue Volvo JLR
Park Avenue Volvo JLR (Brossard, QC) 19 = REM Panama Terminal 19
Slide 20: Mercedes-Benz West Island
Mercedes-Benz West Island (Montreal, QC) 20 20
Slide 21: Mercedes-Benz West Island
Mercedes-Benz West Island (Montreal, QC) Mercedes-Benz West Island Mazda Des-Sources 21 Will benefit from new Fairview-Pointe Claire and Des Sources REM stations. = Major Transit Station 21
Slide 22: REM & Montreal's Metro and Train
REM & Montreal’s Metro and Train Expected completion: • Brossard (2023) • Anse-à-l’Orme( 2024) • Deux-Montagnes (2024) Deux-Montagnes • Montreal’s airport (2027) Ville De Mont-Royal Central Station APR Properties Potential Future Laval Transportation YUL-Montreal-Trudeau Airport Brossard Anse-a-L’or
Slide 23: Quebec Announces Big Projects for Laval Transit
Quebec Announces Big Projects for Laval Transit “In Action for Sustainable Mobility in Laval” Source: https://qcna.qc.ca/news/quebec-announces-big-projects-for-laval-transit
Slide 24: Ottawa Properties
OTTAWA PROPERTIES
Slide 25: Elite BMW & Civic Motors Honda
Elite BMW & Civic Motors Honda 78,366 4.96 SF : 7,500 Acres: 0.63 Camco Acura & MINI 30,000 SF: 75,879 1.54 Acres: 3.89 Ogilvie Subaru & Detailing Centre SF: 19,033 Acres: 2.26 Bank St Toyota SF: 57,702 Acres: 6.34 Lot (2 Laser St) 263,011 SF: 0 24,531 Acres: 3.02 24.28 3.18 25
Slide 26: Camco Acura & MINI
Camco Acura & MINI (Ottawa, ON) 26 26
Slide 27: Camco Acura & MINI
Camco Acura & MINI (Ottawa, ON) 27 =Westgate Future Redevelopment 27
Slide 28: RioCan's Westgate Mall Proposed Redevelopment
RioCan’s Westgate Mall Proposed Redevelopment 3 phases, five buildings, 24-36 storeys Source: Westgate Mixed-Use Community Master Plan, Fontenn Planning + Design, and RENX.ca 28
Slide 29: Bank Street Toyota
Bank Street Toyota (Ottawa, ON) 29 29
Slide 30: Bank Street Toyota
Bank Street Toyota (Ottawa, ON) 30 Current secondary plan permits 16 storeys with 3.5X max FSI = Major Transit Stop Under official plan review for greater intensification 30
Slide 31: Elite BMW & Service, Civic Motors, Lot
Elite BMW & Service Civic Motors Lot (1106 Cyrville) (Ottawa, ON) 31 31
Slide 32: Elite BMW & Service, Civic Motors, Lot
Elite BMW & Service Civic Motors Lot (1106 Cyrville) (Ottawa, ON) 32 = Major Transit Terminal Secondary plan 30 storeys support under official plan review 32
Slide 33: Neighbouring Development
Neighbouring Development 1209 St. Laurent Blvd 1.05 acre property Fengate & Canderel acquired January 2022 for $15.13M to develop 2-tower purpose built rental buildings 33 including 640 units / 30-storeys shared by 7-storey podium Source: https://renx.ca/fengate-acquiring-2-high-density-ottawa-multi
Slide 34: GTA Properties
GTA PROPERTIES
Slide 35: Honda, Audi Vaughan, Frost GM
Audi Vaughan Honda 72,010 68,874 6.00 2.98 32,025 22,741 3.00 3.00 65,547 2.52 188,156 26.05 34,539 30,788 3.70 7.94 613,490 Frost GM 55,600 54.13 SF: 43,210 4.02 Acres: 2.86 35
Slide 36: Audi Vaughan
Audi Vaughan (Vaughan, ON) 36 36
Slide 37: Audi Vaughan
Audi Vaughan (Vaughan, ON) Audi Vaughan Vaughan Mills 37 Neighbouring properties achieving heights of 26-29 storeys. = Major Transit Terminal 37
Slide 38: Neighbouring Developments
Neighbouring Developments 38 8940-8946 Jane St – Charisma 9075 Jane St – Park Place Phase 1&2 (Greenpark Homes) (Solmar Developments) Storeys: 26, 28, 29 Storeys: 23 & 20 Source: UrbanToronto.ca Source: UrbanToronto.ca 38
Slide 39: Markham Honda & Markham Acura
Markham Honda & Markham Acura (Markham, ON) 39 39
Slide 40: Markham Honda & Markham Acura
Markham Honda & Markham Acura (Markham, ON) Markham Acura Markham Honda 40 = Major Transit Terminal = Future BRT Station 40
Slide 41: Markham Honda | Area Developments
Markham Honda | Area Developments Two Towers to Replace Car Dealership near Kennedy and Hwy 7 ▪ AWIN submitted OPA and Zoning By-law Amendment for residential mixed-use project just north of Markham Honda site ▪ Approximately 3 acre site proposes 2 towers 23 & 27 storeys including 769 new residentia
Slide 42: Remington and City of Markham - Downtown Markham Megaproject
Remington and City of Markham - Downtown Markham Megaproject Source: https://downtownmarkham.ca/about/downtown-markham/; 42
Slide 43: Cadillac Fairview and Ontrea - Markville Mall Proposed Redevelopment
Cadillac Fairview and Ontrea - Markville Mall Proposed Redevelopment Markham Acura Source: https://urbantoronto.ca/database/projects/markville-mall-redevelopment.51306 43
Slide 44: Audi Queensway
Audi Queensway (Etobicoke, ON) 44 44
Slide 45: Audi Queensway
Audi Queensway (Etobicoke, ON) 45 45
Slide 46: Cadillac Fairview & DiamondCorp - Sherway Gardens
Cadillac Fairview & DiamondCorp - Sherway Gardens 3-Phase Development Plan Source: https://urbantoronto.ca/news/2021/12/three-phase-development-proposed-around-sherway- gardens-etobicoke.46777 46
Slide 47: Audi Queensway | RioCan's Verge Condos
Audi Queensway | RioCan’s “Verge” Condos • Four towers of 8-17 storeys atop 2 buildings fronting The Queensway • Combined 545 condominium units • 4-minute drive from Mimico Go station Source: www.RiocanLiving.com 47
Slide 48: Calgary Properties
CALGARY PROPERTIES
Slide 49: Country Hills VW
Country Hills VW SF: 34,650 Acres: 4.73 Aston Martin / Bentley 87,724 SF: 24,367 3.51 Acres: 1.57 43,511 4.12 21,808 1.96 22,185 2.21 58,913 4.20 291,158 22.30 49
Slide 50: Calgary Honda & Hyundai Gallery
Calgary Honda & Hyundai Gallery (Calgary, AB) 50
Slide 51: Calgary Honda & Hyundai Gallery
Calgary Honda & Hyundai Gallery (Calgary, AB) 51 = LRT Station 51
Slide 52: City of Calgary - Anderson Station Area Redevelopment Plan
City of Calgary - Anderson Station Area Redevelopment Plan Located 600 m from Anderson LRT Station (C-train) identified as a primary transit hub by Municipal Development Plan §Vision includes higher-density, mixed-use development with pedestrian friendly blocks around the station Located 600 m from
Slide 53: Vancouver Properties
VANCOUVER PROPERTIES
Slide 54: Premium Pre-Owned Luxury
19,050 1.11 22,373 2.40 27,640 1.25 29,300 0.25 Premium Pre-Owned Luxury 11,800 0.27 39,790 1.56 22,921 2.00 199,322 26,448 11.11 2.27 54
Slide 55: Audi Downtown Vancouver
Audi Downtown Vancouver (Vancouver, BC) 55 55
Slide 56: Audi Downtown Vancouver
Audi Downtown Vancouver (Vancouver, BC) 56 = Future Arbutus Transit Station 56
Slide 57: Audi Downtown Vancouver – Kitsilano & False Creek Area
Audi Downtown Vancouver – Kitsilano & False Creek Area Main Street- Science World = APR Properties Source: City of Vancouver – Broadway Subway Project 57
Slide 58: Quantam Park
Quantam Park Concord Pacific ‘s initial rendering of the 7.6 acre redevelopment of Molson industrial land, at the foot of Burrard bridge. A vision for a 1.8 million-square-foot high-tech enclave that includes 300,000 square feet of office space, 3,000 homes, primarily in a series of towers of up to
Slide 59: Porsche Vancouver
Porsche Vancouver (Vancouver, BC) 59 59
Slide 60: Porsche Vancouver
Porsche Vancouver (Vancouver, BC) 60 = Future St. Pauls Hospital = SkyTrain Terminal 60
Slide 61: Investment Highlights
Investment Highlights • Solid growth in key performance metrics in 2022 & 2023 YTD • Canadian automotive dealership industry proving its resilience as an essential business with strong sales and service levels • Dealers have lowered operating expenses and leveraged e-commerce offerings • High-qualit
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