Granite Real Estate Investment Trust · TSX:GRT.UN
Granite Real Estate Investment Trust — Investor Presentation (February 2025)
24 slides from Granite Real Estate Investment Trust's investor presentation, February 2025
Slide 1: Investor Presentation February 2025
INVESTOR PRESENTATION | August 2020 INVESTOR PRESENTATION | February 2025
Slide 2: Presentation of Certain Information
PRESENTATION OF CERTAIN INFORMATION • Unless otherwise indicated in this presentation, all information is presented as of December 31, 2024 and all financial information that is identified as current refers to the period ending December 31, 2024. For definitions of certain non- GAAP performance meas
Slide 3: Granite Highlights
GRANITE HIGHLIGHTS1 ORGANIZATIONAL PRINCIPLES PORTFOLIO OVERVIEW FINANCIAL PERFORMANCE • Long-term total return • 138 income-producing • 68% LTM AFFO POR1 focused properties + 5 • 32% net leverage ratio1 • Conservative and flexible development properties • Outlook of 4.5% - 6.0% capital structure •
Slide 4: ESG+R Objectives
ESG+R OBJECTIVES ENVIRONMENTAL SOCIAL GOVERNANCE • Promote energy efficiency and • Engage with our unitholders, • Disclose our ESG+R performance as a sustainable practices at both our employees, tenants, property commitment to transparency and properties and corporate offices managers and the local
Slide 5: ESG – GRESB 2024
ESG – GRESB 2024 GRESB 2024 - Granite ranked 1st in the Northern America/Industrial/Listed/Tenant Controlled peer group GRESB 2024 Public Disclosure Report - Granite ranked 1st in the United States of America/Industrial sector 5
Slide 6: ESG - Green Bonds
ESG - GREEN BONDS (AS AT DEC 31, 20241) Green Bonds Issued to Date $1.4B 2027 Green Bond Allocation 100% Green Bond Spend to Date $1.2B 2028 Green Bond Allocation 100% Overall Allocation 85% 2029 Green Bond Allocation 48% Spend by Framework Category Spend by Location Spend by Green Building Certific
Slide 7: Granite's Evolution
GRANITE’S EVOLUTION5 Investment Property Summary Then - December 31, 2012 Now – December 31, 2024 0.6M SF 48.8M SF 16.2M SF 11.8M SF Flex/Office2 Distribution/E- Special Purpose Multi-Purpose2 $159M commerce3 $970M $690M $6,797M 5.0M SF $1.7B Industrial/Warehouse2 $1,131M $9.4B Value Value 8.9M SF S
Slide 8: Portfolio Transformation Strategy
PORTFOLIO TRANSFORMATION STRATEGY TARGET MARKETS MODERN FACILITIES E-COMMERCE TRENDS • Superior economic • Meet the demands of • Invest opportunistically in conditions and market E-Commerce and evolving property types fundamentals traditional distribution and markets benefiting • Proximity to major
Slide 9: Financial Performance
FINANCIAL PERFORMANCE Historical Operating Performance ($M)2 Distributions and Payout Ratios1,2 91% 81% $569 80% 77% $521 77% 71% 68% 73% 75% $456 78% 79% $437 70% 64% 61% $394 $393 3.40 3.30 $352 $340 3.20 $307 $299 3.10 $287 $274 $265 $264 3.00 $248 $235 2.90 $204 $216 $187 2.80 $173 2.72 $138 201
Slide 10: GRT Historical Performance
GRT HISTORICAL PERFORMANCE Total Return vs TSX Composite & TSX Capped REIT Indices Cumulative Total Return %1 350% 325% 300% 275% 250% 225% 200% 175% 150% 125% 100% 75% 50% 25% 0% Granite REIT TSX Capped REIT Index TSX Composite Index Granite has outperformed the TSX and Capped REIT Total Return ind
Slide 11: Globally Diversified Portfolio
GLOBALLY DIVERSIFIED PORTFOLIO 5 countries – 143 properties – 63.3 million square feet GERMANY 14 properties 4.7M SF CANADA 38 properties 6.9M SF NETHERLANDS 1 16 properties 2 5.4M SF 4 UNITED STATES 66 properties Special Purpose 38.8M SF 7 AUSTRIA Properties 9 properties 7.5M SF Global footprint wi
Slide 12: Portfolio Segmentation by Geography
PORTFOLIO SEGMENTATION BY GEOGRAPHY By Income-Producing Property Fair Value By Annualized Revenue $834M $2,032M 22% $71.9M 14% 17% $82.1M 9% $782M 8% $43.4M 9% $626M 7% $9.3B 8% $494M $37.7M $5,023M $259.0M 54% 52% By Square Feet By Number of Income-Producing Properties 7.5M 11% 6.9M 25% 12% 9 35 7%
Slide 13: IPP Portfolio Segmentation by Category
IPP PORTFOLIO SEGMENTATION BY CATEGORY Distribution/E-commerce Properties Industrial/Warehouse 96 Properties 32 Properties 48.8M SF (∼509K SF/property) 5.0M SF (∼156K SF/property) $6.8B Fair Value (∼$139/SF): 73% $1.1B Fair Value(∼$227/SF): 12% WALT: 5.5 years WALT: 3.7 years 73% $341.7M Annualized
Slide 14: Development and Expansion Pipeline
DEVELOPMENT AND EXPANSION PIPELINE • Third phase of total ~2.4 million SF development site in Houston, TX • Granite has completed 3 buildings for a total of 1.4 million SF • The third phase will be ~ 391,000 SF as a US$50M build-to-suit project for a leading global consumer food product company • Gr
Slide 15: Lease Expiration Profile
LEASE EXPIRATION PROFILE Outstanding Lease Expiries by Annualized Revenue Annualized Overall Committed Revenue $494M WALT 5.7 Years Occupancy1 95.0% Canada USA Germany Netherlands Austria 40.1% 100 90 80 Annualized Revenue (C$M) 70 15.8% 60 13.7% 50 40 8.6% 9.3% 9.3% 30 3.2% 20 10 0 2025 2026 2027 2
Slide 16: High Quality & Creditworthy Tenant Base
HIGH QUALITY & CREDITWORTHY TENANT BASE Annualized Credit Other Tenants Top 10 Tenants GLA % WALT Revenue % Rating1,2 Magna 26.1% 19.2% 6.4 A- Amazon.com 4.0% 3.9% 14.2 AA Mars Petcare US 2.7% 3.5% 5.6 NR True Value Company 2.1% 2.2% 16.2 NR Ceva Logistics US Inc. 1.9% 1.6% 2.0 B1 ADESA 1.8% 0.3% 4.
Slide 17: Balance Sheet Strength
BALANCE SHEET STRENGTH1 Capitalization Debt Maturity Profile $700 8.00% Unit Price (02/21/2025) $67.43 Units Outstanding 62.3 7.00% Weighted average interest rate $600 Market Capitalization2 $4,199 6.00% $89 $500 €60M Term Loan due Sep/26 Debentures CORRA + 77bps due Dec/26 $300 4.38% 4.35% 5.00% De
Slide 18: Financial Flexibility & Target Long-Term Leverage Ratio
FINANCIAL FLEXIBILITY & TARGET LONG-TERM LEVERAGE RATIO1 • Strong balance sheet provides pathway for measured growth with potential for further diversification and optimization of the portfolio • Target long term net leverage ratio1 of ∼30 - 35% and net-debt-to-EBITDA of 6 - 7x while maintaining pat
Slide 19: Leadership Team
LEADERSHIP TEAM Kevan Gorrie Teresa Neto Lorne Kumer Michael A. Ramparas President and Chief Executive Officer Chief Financial Officer Executive Vice President, Executive Vice President, Global Head of Global Real Estate Real Estate & Head of Investments Witsard Schaper Lawrence Clarfield Jon Sorg S
Slide 20: Investor Relations Contact
INVESTOR RELATIONS CONTACT Andrea Sanelli Senior Director, Legal & Investor Services T: 647.925.7504 E: ir@granitereit.com 20
Slide 21: Appendix
APPENDIX ❖ The following non-GAAP performance measures and non-GAAP ratios are important measures used by management in evaluating the Trust’s underlying operating performance and debt management. These non-GAAP performance measures and non-GAAP ratios are not defined by IFRS® Accounting Standards a
Slide 22: Appendix
APPENDIX Net operating income - cash basis Granite uses NOI on a cash basis, which adjusts NOI to exclude lease termination and close-out fees, and the non-cash impact from straight-line rent and tenant incentive amortization recognized during the period. NOI - cash basis is a commonly used measure
Slide 23: Appendix
APPENDIX B) NON-GAAP RATIOS FFO and AFFO payout ratios The FFO and AFFO payout ratios are calculated as monthly distributions, which exclude special distributions, declared to unitholders divided by FFO and AFFO (non-GAAP performance measures), respectively, in a period. FFO payout ratio and AFFO pa
Slide 24: Appendix: Subsequent Events
APPENDIX C) SUBSEQUENT EVENTS Withdrawal of Moody’s Ratings On January 16, 2025, Moody's withdrew all credit ratings of Granite at Granite's request. The outlook prior to the withdrawal was stable. Issuance of Unsecured Debentures On February 4, 2025, Granite REIT Holdings Limited Partnership (“Gran
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