First Capital Real Estate Investment Trust · TSX:FCR.UN
First Capital Real Estate Investment Trust — First Capital Realty — Q3 2018 Earnings Presentation
18 slides from First Capital Real Estate Investment Trust's earnings presentation, Nov 6, 2018
Slide 1: Q3 2018 Conference Call
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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: Opening Remarks
Opening Remarks ADAM PAUL PRESIDENT & CEO
Slide 4: Q3 2018 Highlights
Q3 2018 Highlights SP NOI Occupancy NAV Key Metrics $97.1M 96.5% $22.54 Year over Year Growth 2.5% 120bps 3.9% Mount Royal Village West Hazelton Hotel & Yorkville Village Wilderton Project Calgary, AB Toronto, ON Montreal, QC 4
Slide 5: Financial Overview
Financial Overview KAY BREKKEN EVP & CHIEF FINANCIAL OFFICER
Slide 6: Q3 2018 FFO Results
Q3 2018 FFO Results YTD FFO per share up 7.2% Q3 2018 Q3 2017 Variance % Change YTD 2018 YTD 2017 Variance % Change FFO/share $0.30 $0.30 $0.00 -% $0.92 $0.86 $0.06 7.2% FFO ($ millions) $76.5 $73.7 $2.8 3.8% $229.6 $210.9 $18.7 8.8% Major Contributors (YOY change in $ millions) Q3 2018 vs Q3 2017 Y
Slide 7: Q3 2018 Highlights – Operating Metrics
Q3 2018 Highlights – Operating Metrics Q3 Same Property NOI increase of 2.5% Same Property NOI Growth Q3 2018 YTD 2018 YTD 2017 (1) 2017 (1) Same Property – Stable 2.4% 2.9% 2.0% 2.0% Total Same Property 2.5% 3.1% 2.7% 2.5% Total Same Property (excluding lease termination fees) 3.6% 3.0% (1) Prior p
Slide 8: Q3 2018 Highlights – Operating Metrics
Q3 2018 Highlights – Operating Metrics Q3 lease renewal rate increases of 8.7% and 11.7% Q3 2018 Q3 2017 YTD 2018 2017 Total Same Other Property Total Total Portfolio (GLA reported at FCR %) Property Categories Portfolio Renewal leasing (sq. ft.) 573,000 70,000 643,000 439,000 2,040,000 1,712,000 Re
Slide 9: Q3 2018 Highlights – Operating Metrics
Q3 2018 Highlights – Operating Metrics Average Net Rental Rate grew 3.4% from Q3 2017 Q3 2018 Q3 2017 YTD 2018 2017 Total Same Other Property Total Total Portfolio (GLA reported at FCR %) Property Categories Portfolio Developments coming online (sq. ft.) 22,000 37,000 76,000 48,000 197,000 131,000 D
Slide 10: Q3 2018 Highlights – Operating Metrics
Q3 2018 Highlights – Operating Metrics Occupancy rate up 120 basis points from Q3 2017 Q3 2018 Q3 2017 Q2 2018 Total Same Total Total Same Total Total Same Total (GLA reported at FCR %) Property Portfolio Property (1) Portfolio Property (1) Portfolio Gross Leasable Area (sq. ft.) 20,558,000 23,797,0
Slide 11: Investment in Development and Redevelopment
Investment in Development and Redevelopment $55.2 million during Q3 2018 Yorkville Village Assets 3080 Yonge Street Mount Royal Village Assets Toronto, ON Toronto, ON Calgary, AB King High Line Edmonton Brewery District Centre Commercial Wilderton Toronto, ON Edmonton, AB Montreal, QC 11
Slide 12: FFO
FFO YTD FFO per share up 7.2% to $0.923 ($ millions, except per share amounts) Q3 2018 Q3 2017 Variance YTD 2018 YTD 2017 Variance Net operating income $116.1 $111.9 $4.3 $344.3 $330.4 $13.8 Interest and other income 7.6 8.7 (1.1) 22.2 21.3 0.9 Interest expense (38.6) (40.0) 1.4 (114.6) (116.7) 2.2
Slide 13: Other Gains (Losses) and (Expenses) – FFO
Other Gains (Losses) and (Expenses) – FFO YTD Other Gain of $2.9 million ($ millions) Q3 2018 Q3 2017 Variance YTD 2018 YTD 2017 Variance Realized gain (loss) on marketable securities $0.1 $− $0.1 $4.2 $− $4.2 Unrealized gain (loss) on marketable 0.1 1.4 (1.3) 0.3 1.9 (1.7) securities Net gain (loss
Slide 14: ACFO
ACFO YTD ACFO up 8.4% ($ millions) Q3 2018 Q3 2017 Variance YTD 2018 YTD 2017 Variance Cash provided by operating activities $72.0 $86.0 ($13.9) $168.9 $162.8 $6.1 Add (deduct): Working capital adjustments 5.1 (5.0) 10.1 33.0 32.2 0.7 Adjustment for equity accounted joint ventures 0.2 0.8 (0.6) 2.4
Slide 15: 2018 Financing Activities
2018 Financing Activities New borrowing rates well below rates on debt repaid Term at Effective Rate $ Millions Issuance Total New Mortgages 3.8% 10.0 - 12.0 $176.3 Mortgage Repayments 5.4% ($96.0) Redemption of Series J Convertible Debentures 5.3% ($55.1) Repayment of Series J Unsecured Debentures
Slide 16: Financial Strength and Flexibility
Financial Strength and Flexibility Leverage declined primarily due to Q3 Equity Offering Q3 2018 YE 2017 Unsecured revolving credit facility $800M $800M 71% of total Unencumbered assets ($ billions) assets $7.3 $7.4 Unencumbered assets to unsecured debt 2.4x 2.4x Secured indebtedness to total assets
Slide 17: Well-Staggered Term Debt Maturities
Well-Staggered Term Debt Maturities (as at Sept 30, 2018) Weighted Average Interest Rate 4.3% Senior Unsecured Debentures Term to Maturity 5.1 years Mortgages 7.0% 100% of Term Debt is Fixed Rate Millions Weighted Average Effective Interest % $600 6.0% $500 5.0% $400 4.0% $300 3.0% $200 2.0% $100 1.
Slide 18: Contact Info