Nexus Industrial Reit · TSX:NXR.UN
Nexus Industrial Reit — Nexus Real Estate Investment Trust — Shareholder Meeting (2020)
15 slides from Nexus Industrial Reit's shareholder meeting presentation, 2020
Slide 1: 2020 Annual General Meeting
2020 Annual General Meeting Nexus Real Estate Investment Trust NEXUS INVESTOR PRESENTATION | 2020 ANNUAL GENERAL MEETING 1
Slide 2: Ben Rodney, Chair of the Nexus REIT Board of Trustees
Ben Rodney Chair of the Nexus REIT Board of Trustees NEXUS INVESTOR PRESENTATION | 2020 ANNUAL GENERAL MEETING 2
Slide 3: Notice to the Reader
Notice to the Reader ABOUT THIS PRESENTATION No reliance may be placed for any purpose whatsoever on the information contained in this presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of Nexus REIT (the “REI
Slide 4: Nexus REIT at a glance
Nexus REIT at a glance Nexus REIT (“Nexus” or the “REIT”) is an open-ended REIT focused on unitholder value creation through the acquisition and ownership of commercial properties across Canada 1 INTERNALIZED ASSET MANAGEMENT ➢ Fully aligned management team with meaningful direct ownership in the RE
Slide 5: Benefiting from a Strategic Investor and Partner
Benefiting from a Strategic Investor and Partner Strategic Relationship with Access to Quality Asse • Privately held real estate investment and Overview: asset management firm Founded: • 1996 • Invests in office, retail, industrial and multi-family and seniors housing Experience in properties in the
Slide 6: A Diversified Portfolio
A Diversified Portfolio Industrial Portfolio Retail Portfolio Office Portfolio Many Investment Grade, High-Quality The Majority of Urban Office Assets Stable Cash Flows, Long-Term Leases, National Tenants Offering Necessity- Located in the Downtown Montreal and Embedded Rent Escalations Based Produc
Slide 7: Nationwide Asset Base
Nationwide Asset Base 72 properties located across Canada Base Rent by Province/Territory 1.4% 12.3% 25.9% 1 45.2% 7.6% 2 0.3% 3.4% 3.9% 13 2 13 1 NWT BC AB SK ON NB PEI QC 2 8 17 9 1 1 Base Rent by Sector 2 15.9% 48.5% 25.3% 19 Retail 35 Industrial 4 Mixed-Use 14 Office 10.3% Industrial Mixed-use R
Slide 8: AFFO Payout Ratio
Demonstrated Track Record of Success Management has demonstrated its ability to successfully make and integrate accretive acquisitions resulting in a declining AFFO payout ratio 99% 100.0% AFFO Payout Ratio 95% 89% 90.0% 83% 83% 79% 80.0% 70.0% 60.0% 1 2014 2015 2016 2017 2018 2019 Delivering Strong
Slide 9: Value Creation - Richmond, BC
Value Creation - Richmond, BC Overview Redevelopment Value Creation Underway • Purchased an industrial asset (consisting of 2 buildings) in Richmond, BC for $57.4MM • Appraised at ~$80MM (March 2018), highlighting the significant inherent value of the property; offering potential for significant NAV
Slide 10: Balanced Debt Maturities and Lease Expiries
Balanced Debt Maturities and Lease Expiries Debt Repayment Schedule ($MM)(1)(2) $160.3 $45.4 $53.7 $23.4 $22.0 2020 2021 2022 2023 Thereafter % of Total 14.9% 7.7% 7.2% 17.6% 52.6% Debt Lease Expiry Schedule (Sq. Ft. ‘000s)(1) % of Total Leased GLA 1) As at Q4 2019 MD&A 2) Includes lease liabilities
Slide 11: COVID-19 Update
COVID-19 Update April and May Rent Collections to Date • 84% of total April rents collected, broken down by asset class as: • Industrial 86.6% • Mixed Use 96.2% • Office 96.5% • Retail 65.9% • 80% of total May rents collected, broker down by asset class as: • Industrial 87.5% • Mixed Use 80.0% • Off
Slide 12: COVID-19 Update (Continued)
COVID-19 Update (Continued) Canada Emergency Commercial Rent Assistance (CECRA) Program • Announced April 24, 2020; some additional details announced April 29, 2020; final details outstanding. • Intended to provide commercial rent reductions of 75% to small businesses (businesses with less than $20
Slide 13: COVID-19 Update (Continued)
COVID-19 Update (Continued) Liquidity • Approximately $5MM of cash at March 31, 2020. • $5MM of availability under the REIT’s revolving credit facility. • Mortgage principal and interest deferrals provided by key lenders for the months of April, May and June 2020. Deferrals on approximately 42% of d
Slide 14: Key Takeaways
Key Takeaways Nexus provides investors with 1. We have liquidity the opportunity to invest in an 2. Attractive current distribution yield over 10.0% investment vehicle that 3. Conservative capital structure with Debt to acquires and operates quality Assets at year end of ~49% commercial real estate
Slide 15: Questions?
Questions? Kelly Hanczyk CEO Phone: (416) 906-2379 Email: khanczyk@nexusreit.com Rob Chiasson CFO Phone: (416) 613-1262 Email: rchiasson@nexusreit.com Thank you for participating in Nexus REIT’S Annual General Meeting Stay safe and healthy. NEXUS INVESTOR PRESENTATION | 2020 ANNUAL GENERAL MEETING 1
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