Nexus Industrial Reit · TSX:NXR.UN
Nexus Industrial Reit — Nexus Real Estate Investment Trust — Investor Presentation (July 2021)
16 slides from Nexus Industrial Reit's investor presentation, July 2021
Slide 1: Nexus Real Estate Investment Trust Investor Presentation
Nexus Real Estate Investment Trust Investor Presentation “Industrial-Focused Growth Vehicle” NEXUS INVESTOR PRESENTATION JULY 2021 1
Slide 2: 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 3: Nexus REIT Poised For Value Creation
Nexus REIT Poised For Value Creation Nexus REIT (“Nexus” or the “REIT”) is focused on unitholder value creation through the acquisition and ownership of commercial properties across Canada 1 HIGH QUALITY INDUSTRIAL FOCUSED PORTFOLIO ➢ 87 quality, commercial properties (industrial, retail and office)
Slide 4: A Diversified Portfolio With An Industrial Focus
A Diversified Portfolio With An Industrial Focus Industrial Portfolio Retail Portfolio Office Portfolio 20% of NOI 12% of NOI 68% of NOI (73% proforma acquisitions) Many Investment Grade, High-Quality Majority of Urban Office Assets Stable Cash Flow, Long-Term Leases, National Tenants Offering Neces
Slide 5: Nationwide Asset Base
Nationwide Asset Base 91 properties located across Canada (pro forma the acquisition of 4 industrial properties under contract) NOI by Geography NB MB NWT PEI BC 3% 1% 1% 0% 4% SK QC 5% 29% 1 ON 23% 3 21 1 12 1 9 1 AB 8 19 34% 1 NOI by Asset Class 1 1 12 Office 10% 56 Industrial Retail 17% 22 Retail
Slide 6: Demonstrated Track Record of Success
Demonstrated Track Record of Success Management has demonstrated its ability to successfully make and integrate accretive acquisitions resulting in an attractive AFFO payout ratio 99% 100% 95% 89% 90% AFFO Payout Ratio 83% 83% 84% 82% 79% 80% 70% 60% (1) 2014 2015 2016 2017 2018 2019 2020 2021 1. 20
Slide 7: 2021 Acquisitions
2021 Acquisitions Overview Nexus is acquiring industrial assets with strong long-term 1 tenants in attractive markets. Deals are accretive to AFFO/Unit, and purchase prices are 2 significantly lower than appraisal values. Many vendors continue to take units as partial purchase price 3 consideration.
Slide 8: Value Creation - Richmond, BC
Value Creation - Richmond, BC Overview Phase Redevelopment Value Creation Underway • Industrial asset (consisting of 2 buildings) in Richmond, BC purchased for $57.4MM in April 2018 • Appraised at ~$80MM (March 2018), highlighting the significant inherent value of the property; offering significant
Slide 9: Value Creation – Halles d’Anjou
Value Creation – Halles d’Anjou Overview Value Creation • The REIT and the REIT’s partner are in negotiation to sell excess land at 7500 Boulevard les Galeries d’Anjou. The purchaser intends to build residential units on the land. The purchase price is expected to be approximately $25MM. • The first
Slide 10: Lease Expiries and Occupancy
Lease Expiries and Occupancy Lease Expiry Schedule (Square Feet, ‘000s) at March 31, 2021 2,471.0 Weighted Average Lease Term of ~5 Years 2018 720.7 2021 489.3 264.2 289.6 2022 2023 2024 2021 2022 2023 2024 Thereafter % of Total Leased GLA 6.2% 6.8% 11.6% 17.0% 58.3% 2025 2026 Occupancy by Asset Cla
Slide 11: Liquidity & Debt Maturities
Liquidity & Debt Maturities Debt Repayment Schedule ($MM) Weighted Average Term to Maturity ~4 Years Weighted Average Interest Rate ~3.7% $121.2 $56.0 $48.5 $32.5 $24.4 2021 2022 2023 2024 Thereafter % of Total 11.5% 8.6% 19.8% 42.9% 17.2% Debt Liquidity • As at March 31, 2021 the REIT had $51.8MM o
Slide 12: Benefiting from a Strategic Investor and Partner
Benefiting from a Strategic Investor and Partner • Privately held real estate investment and Overview: asset management firm • Owns ~10% of the REIT’s outstanding units RFA Bank of Canada Founded: • 1996 • Invests in office, retail, industrial, multi- family and seniors housing properties in Experie
Slide 13: Leadership Team
Leadership Team Management Team Board of Trustees Name Title Experience Name Experience • Chairman of The Board Ben Rodney • Principal and Managing Partner of RFA Capital • Former CEO and Trustee of TransGlobe • Chair of Artis REIT Board of Trustees Kelly Apartment REIT CEO Hanczyk • Extensive exper
Slide 14: REIT Comparison
REIT Comparison Price / Last Units Current FFO Price / FFO AFFO Prem./Disc. Market Cap(2) Distribution AFFO NAV Price(1) O/S Yield 2021E 2021E 2021E to NAV 2021E Nexus REIT $ 9.94 48.3 $ 480.1 $ 0.64 6.4% $ 0.85 11.7x $ 0.80 12.4x $ 10.16 -2.2% Industrial REITs Dream Industrial REIT $ 15.14 228.0 $
Slide 15: Key Takeaways
Key Takeaways Nexus provides investors the 1. Robust pipeline of industrial acquisition opportunities with opportunity to add significant GLA to existing opportunity to participate in an assets in the London Ontario market. industrial-focused investment 2. Opportunity for multiple expansion, with th
Slide 16: Contact Us
Contact Us Kelly Hanczyk CEO Phone: (416) 906-2379 Email: khanczyk@nexusreit.com Rob Chiasson CFO Phone: (416) 613-1262 Email: rchiasson@nexusreit.com NEXUS INVESTOR PRESENTATION JULY 2021 16
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