Riocan Real Estate Investment Trust · TSX:REI.UN
Riocan Real Estate Investment Trust — Q1 2021 Earnings Presentation
22 slides from Riocan Real Estate Investment Trust's earnings presentation, May 4, 2021
Slide 1: Always Adapting – Q1 2021 Conference Call
ALWAYS ADAPTING CONFERENCE CALL LOOKING AHEAD Q1 2021 May 4, 2021
Slide 2: Non-GAAP Measures and Forward Looking Information
NON-GAAP FORWARD LOOKING MEASURES INFORMATION RioCan’s consolidated financial Certain information included in this presentation contains forward-looking statements within the meaning of applicable statements are prepared in accordance securities laws including, among others, statements concerning ou
Slide 3: Business Overview
642 King St. Jonathan Gitlin, President & Chief Executive Officer BUSINESS OVERVIEW Q1 2021 Conference Call | RioCan | 3
Slide 4: COVID-19 Business Update
COVID-19 Business Update(1) Resilient rent collection despite changing COVID-19 restrictive measures Strong rent collections despite ~20% of 0.7% 0.8% tenants closed 0.0% 100% 3.2% 4.6% 5.3% 3.4% 6.8% 0.7% 2.4% 95% 0.2% 0.5% 1.8% 0.0% 2.9% 90% 85% 94.5% 95.1% 93.9% 93.6% 89.6% 80% 75% Q2 2020 Q3 202
Slide 5: Well-positioned portfolio retains and attracts tenants
Well-positioned portfolio retains and attracts tenants 1.1 M sq. ft. of new and renewed leases executed at spreads exceeding pre-pandemic Q1 2020 New Leasing Blended Leasing Average Net Rent Spread (%) Spread (%) PSF ~3.0% 18.6% CAGR $19.87 $19.75 $19.80 9.8% 14.2% 8.1% $19.07 6.5% 5.6% 8.2% $17.75
Slide 6: First Quarter 2021 Results
First Quarter 2021 Results Impacted by successive waves of the pandemic FFO per unit Same property NOI $0.39 $0.361 Q4 2020 Q1 2021 -1.1% -2.6% -4.6% Q4 2020 Q1 2021 -7.9% 1) Excludes $7.0M debenture prepayment costs but includes $5.8M of one-time G&A costs SPNOI excluding pandemic-related provision
Slide 7: RioCan properties attract resilient tenants
RioCan properties attract resilient tenants Improving property and tenant mix in lockstep with consumer spending patterns Property Mix* Tenant Mix* 30 bps vs. YE 2020 10 bps Enclosed, vs. YE 9.2% 2020 Mixed- Use / 20 bps Urban, 21.1% vs. YE 2020 Open Air Centre, 27.2% Grocery Anchored Centre, 42.5%
Slide 8: Strong base of resilient tenants
Strong base of resilient tenants With solid covenants and business fundamentals able to withstand challenges Rent Collection by Tenant Type(1) (% billed gross rent) Strong tenants National office and essential / necessity / value and specialty retail tenants with strong rent paying ability and inclu
Slide 9: RioCan Living – high quality rental residences
RioCan Living – high quality rental residences Steady rent collection of ~98% for residential rental in Q1 2021 eCentral, Toronto, ON Frontier, Ottawa, ON Brio, Calgary, AB Pivot, Toronto, ON • 466 units, 36-storey • 228 unit, 23-storey • 163 unit, 12-storey • 361 unit, 36-storey building building b
Slide 10: RioCan development focused on mixed-use residential
RioCan development focused on mixed-use residential Transforming RioCan through excess density on existing income producing properties Total Pipeline by Zoning Status • ~100% located in Canada’s six major markets • ~73% located in the GTA • ~83% are residential developments • ~60% located on transit
Slide 11: Windfields Farms
+25% Creating a complete 10-Yr Population growth within community to service a 5km radius1 rapidly expanding market • Retail: ~100k sq. ft. Phase 1 – ~90% leased • Townhouses: 392 units three phases • Condos : 1,500 units first of three towers 100% pre-sold • 50/50 Residential Partner: Tribute Commu
Slide 12: THE WELL
An amenity-rich +40% mixed-use urban neighbourhood in the 10-Yr Population growth within heart of Toronto West 3km radius1 • Retail: ~340k sq. ft. ~34% leased • Office: ~1.2M sq. ft. ~85% leased • Residential : 1,700 units over six towers Air rights sales to Woodbourne and Tridel complete for 3 of 6
Slide 13: Development completions with more to come
Development completions with more to come Select projects due for delivery in 2021 Annual development spending THE WELL™ Toronto, Ontario • 2021 guidance: $500M range o Properties under development: ~$400M o Residential inventory: ~$100M • 2022 and beyond: <2021 development spending o Due to complet
Slide 14: Embedding best practices in everything we do
Embedding best practices in everything we do Select Q1 2020 Achievements Supporting Our Communities Along with our partner, Context, and in collaboration with Canada’s Greenest the City of Toronto and Toronto Community Housing Employers 2021 Corporation (TCHC) at the Queen & Coxwell master plan comm
Slide 15: Financial Review
RioCan Hall Qi Tang, Senior Vice President & Chief Financial Officer FINANCIAL REVIEW Q1 2021 Conference Call | RioCan | 15
Slide 16: First Quarter 2021 Results
First Quarter 2021 Results FFO per unit $0.39 1 Drivers of quarter-over-quarter change $0.36 • $5.8 million one-time general & administrative expenses • Lower residential inventory gains • Lower lease cancellation fees, partially offset by • Lower pandemic-related provision Q4 2020 Q1 2021 1) Exclud
Slide 17: Capital recycling surfaces value
Capital recycling surfaces value Strategic dispositions offering low cost of capital for mixed-use development Dispositions Closed in Weighted Average (in millions) Firm & Conditional(1) Total Q1 2021 Cap Rate Income Producing Properties $155.6M $265.6M $421.2M 5.2%(2) PUD/Residential Inventory $21.
Slide 18: Prudent approach to development
Prudent approach to development RioCan plans to primarily self fund development through retained free cash flow, divestiture proceeds, strategic partnerships and faster capital recycle from condo/townhouse development As at Target March 31, 2021 Properties Under Development (“PUD”) & Residential Inv
Slide 19: Condo / Townhouse development and value creation
Condo / Townhouse development and value creation Alternate source of income and cash flow providing efficient capital recycling Townhomes Condominiums Condominiums Condominiums U.C. Uptowns U.C. Towers 11YV QA Condos Sales All 153 Units Pre-Sold All 503 Units Pre-Sold ~99% of 586 Units Pre-Sold ~89%
Slide 20: Capital Structure Metrics
Disciplined and prudent balance sheet management Ample liquidity bolstered by large pool of unencumbered assets Target Q1 20211 Capital Structure Metrics Liquidity N/A $1.3B Debt to Adjusted EBITDA <8.0x 10.02x2 Debt to Total Assets 38% - 42% 45.3% Interest Coverage >3.0x 2.99x Debt Service Coverage
Slide 21: Jonathan Gitlin, President & Chief Executive Officer
642 King St. Jonathan Gitlin, President & Chief Executive Officer Q1 2021 Conference Call | RioCan | 21
Slide 22: RioCan
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