Crombie Real Estate Investment Trust · TSX:CRR.UN
Crombie Real Estate Investment Trust — Q3 2024 Earnings Presentation
34 slides from Crombie Real Estate Investment Trust's earnings presentation, Nov 7, 2024
Slide 1: Building Together
Building Together Crombie REIT Investor Presentation Q3 2024
Slide 2: Cautionary statements
Cautionary statements Forward-looking Information: and uncertainties that could cause actual results to differ materially from these statements. Crombie can give no assurance that actual results will be consistent with these forward- This presentation contains forward-looking statements that reflect
Slide 3: A leader in Canadian real estate
A leader in Canadian real estate Strong, stable portfolio with opportunity for growth High-quality portfolio driving Strong financial position with Robust value-enhancing strong, predictable cash flow access to multiple sources of development pipeline growth capital 7completed projects $2.7B 305 pro
Slide 4: Building Together
Building Together Enriching communities by building spaces and value today that leave a positive impact on tomorrow 4
Slide 5: Near-term priorities
Near-term priorities Deliver strong risk-adjusted returns and accelerate AFFO and NAV growth per unit Operational Portfolio Financial Excellence Optimization Strength • Own and operate our portfolio of • Focus on entitlement, development, • Maintain a strong balance sheet, grocery-anchored retail, r
Slide 6: Own & Operate
Dp Own & Operate
Slide 7: Intentionally curated, stable portfolio of high-quality properties
Intentionally curated, stable portfolio of high-quality properties Necessity-based portfolio generates stable cash flow Portfolio Fair Value Gross Leasable Area by Asset Type1 by Market Class 1 82% of AMR from necessity-based retailers5 Total $5.7B 19.3m Fair Value2 sq.ft Retail 76.0% 8.6 years weig
Slide 8: Strong economic and committed occupancy
Strong economic and committed occupancy Persistent pursuit of operational excellence 98.0% Committed Occupancy (%) 97.0% Economic Occupancy (%) 96.0% 95.0% 94.0% 93.0% 92.0% 91.0% 90.0% 8 1. Economic occupancy was impacted in Q4 2022 and Q1 2023 by the addition of approximately 304,000 square feet o
Slide 9: Retail REIT WALT of 8.6 years
Retail REIT WALT of 8.6 years Long-term leases contribute to portfolio stability Empire 26.2% of leases mature over Other 11.0 the next five years Empire years % of total portfolio 1,400 10% Other 9% % of total portfolio 1,200 Sq. ft. in thousands 8% 4.4 1,000 7.0% 7% years 5.7% 5.6% 6% 800 5% 5.4%
Slide 10: Well-positioned defensive portfolio
Well-positioned defensive portfolio Long-term earnings and cash flow stability Property revenue1 SANOI2 Q3 2024 Q3 2024 +4.6% +2.6% Q3 2024 $114.5M | Q3 2023 $109.4M Q3 2024 $78.7M | Q3 2023 $76.7M Renewals Renewals spreads Q3 2024 Q3 2024 359,000 sq. ft. +9.7% Q3 2023 238,000 sq. ft. Q3 2023 +6.5%
Slide 11: Strategic acquisition of Zephyr
Strategic acquisition of Zephyr Zephyr Acquisition • Crombie acquired the remaining 50% of Zephyr, in Vancouver, British Columbia, from its partner, for a purchase price of $133 million • Zephyr is a marquee property, well-located in Vancouver’s west end neighbourhood, offering panoramic views of En
Slide 12: Optimize
<p Optimize
Slide 13: Development pipeline drives future value creation
Development pipeline drives future value creation Creating sustainable real estate where people want to live, work, shop, and play 73% Major development pipeline located in VECTOM 1 15% 1 Pipeline properties with zoning 1 10 approval 4 4 Vancouver potential to add ~4,500 units Calgary & Edmonton 5 1
Slide 14: Unlocking value with robust development pipeline
Unlocking value with robust development pipeline 26 major development pipeline projects 3 105,000 sq.ft commercial GLA 960,000 sq.ft residential GLA near-term 1,461 residential units projects1 23 1,039,000 sq.ft commercial GLA 8,500,000 sq.ft residential GLA Medium/long- 9,830 residential units term
Slide 15: Completed major developments
Completed major developments Retail- Substantial % Commercial related Residential Residential Property CMA Completion Ownership GLA industrial GLA Units Date GLA Belmont Market1,2 Victoria 100% Q1 2020 160,000 - - - Davie Street – Retail1 Vancouver 100% Q2 2020 54,000 - - - Avalon Mall – Phase I St.
Slide 16: Near-term major development pipeline
Near-term major development pipeline Commercial Residential Residential Property CMA % Ownership GLA GLA Units The Marlstone Halifax 100% - 189,000 291 1780 East Broadway Vancouver 50%1 105,000 626,000 970 (Broadway & Commercial) Belmont Market – Phase II Victoria 100% - 145,000 200 Total near-term
Slide 17: Major development pipeline
Major development pipeline Site Size Property CMA Project Timing (acres) 1 The Marlstone Halifax 1 Near-term with zoning approvals 2 Belmont Market - Phase II Victoria 2 Near-term 3 Broadway & Commercial1 Vancouver 2 Near-term zoning applications submitted 4 Brunswick Place Halifax 1 Medium-term 5 M
Slide 18: Focused on advancing entitlements
Focused on advancing entitlements Number of Estimated Residential projects total sq. ft.1,2 units1,2 Zoned 4 1,499,000 1,801 Zoning applications submitted 4 3,090,000 3,460 Total 8 4,589,000 5,261 1. Square footage and unit information presented in the table are estimates only and are subject to cha
Slide 19: Creating value through non-major developments
Creating value through non-major developments1,2 Burlington Plaza – Farm Boy Burlington, Ontario Non-major developments Estimated GLA on Estimated Under construction cost to completion total cost complete Land-use intensification, redevelopment, and 52,000 $26.5M $21.0M other Modernizations3 - $31.2
Slide 20: Partner
Partner
Slide 21: Strategic partnership with Empire
Strategic partnership with Empire Capitalizing on a wide range of strategic transactions 89% 11.0 years • • Developing highly-tailored properties designed to meet Empire’s current and future needs Relationship unlocks major development opportunities • Diversified portfolio including both residential
Slide 22: Joint venture partners
Joint venture partners Leveraging and unlocking value through partnerships The Village at Bronte Harbour Le Duke Oakville, Ontario Montreal, Quebec 22 50% Joint Venture 50% Joint Venture
Slide 23: Financial Strength
Dp Financial Strength
Slide 24: Q3 2024 financial highlights
Q3 2024 financial highlights Property revenue1 Q3 2024 Increase in property revenue driven by Property revenue growth $114.5M • Higher revenue from new developments, renewals, new leasing activity, and supplemental rent from modernization investments Q3 2023 $ 109.4M +4.6% Q3 2024 4.6% Operating inc
Slide 25: Financial strength and flexibility
Financial strength and flexibility $2.7B $677m 3.31x 7.72x BBB (low) Fair value of Available Interest Debt to positive trend unencumbered assets liquidity coverage1,2 adjusted EBITDA1,2 Morningstar DBRS credit rating As at September 30, 2024 Optimal low-cost capital structure 52.1% 50.7% 48.9% Equit
Slide 26: Financial strength and flexibility
Financial strength and flexibility Strategically deploying capital to build long-term value for our stakeholders For the period ended Q3 2024 2023 2022 2021 2020 Available Liquidity 1 (millions) $677 $584 $583 $508 $472 Unencumbered Assets (billions) $2.7 $2.6 $2.2 $1.8 $1.4 Interest Coverage Ratio
Slide 27: Innovative capital funding
Innovative capital funding Strategic capital management priorities Priorities: • Maintain multiple sources of both debt and equity financing • De-risk by pre-funding capital commitments • Utilize sources of capital with the most efficient cost of capital Multiple sources of capital Capital Deploymen
Slide 28: Well-laddered debt maturity profile
Well-laddered debt maturity profile1,2 Reducing risk while providing stability and greater flexibility $500 6.0% Millions $450 5.0% $400 $350 4.0% $300 $250 3.0% $200 2.0% $150 $100 1.0% $50 $0 0.0% 2024 2025 2026 2027 2028 2029 2030 2031 2032 Mortgage Maturities Unsecured Notes Joint Ventures WAIR
Slide 29: Environmental, Social & Governance
Environmental, Social & Governance
Slide 30: Crombie's commitment to ESG
Summer Street Scramble Crombie’s commitment to ESG New Glasgow, Nova Scotia Environmental Climate Action Leasing and Operations Design and Development Social Diversity, Equity, and Inclusion Building and Attracting Talent Health, Safety, and Well-being Governance Board Composition and Governance Ris
Slide 31: Crombie's commitment to ESG
Crombie’s commitment to ESG 2023 highlights: Climate Action Plan (CAP) - net zero commitment to reduce greenhouse gas emissions validated and approved by SBTi1 • Net zero by 2050 for scope 1, 2, and 3 • Near term scope 1 and 2 emission reduction of 50% by 2030 CAP progress • Scope 1, 2, and 3 operat
Slide 32: Appendix
Appendix Investor Presentation
Slide 33: Calculation of non-GAAP measures
Calculation of non-GAAP measures1 Shown in thousands of Canadian dollars, except per unit amounts and as otherwise noted Debt to Trailing 12 Months Adjusted EBITDA Q3 2024 2023 2022 20212,3 20202,3 Debt $ 2,506,648 $ 2,468,755 $ 2,359,458 $ 2,517,392 $ 2,649,583 Adjusted EBITDA 324,680 307,356 294,2
Slide 34: Building Together
Building Together Kara Cameron, CFO Ruth Martin, Senior Director, Investor investing@crombie.ca Relations & ESG Reporting (902) 755-8100 ruth.martin@crombie.ca (902) 759-0164
Crombie Real Estate Investment Trust — Q3 2024 Earnings Presentation on 6ix