Canadian Net Real Estate Investment Trust : 2021 Q3 MD&A

About this update from Canadian Net Real Estate Investment Trust

Management Discussion & Analysis Q3 2021 Period ended September 30 th , 2021 Form 51-102F1 Canadian Net Real Estate Investment Trust SUMMARY OF SELECTED FINANCIAL INFORMATION 9 months Periods ended September 30 2021 2020 % Financial info Property rental income 14,020,771 9,286,366 4,734,405 51% Total revenue 14,020,771 9,296,656 4,724,115 51% Net income and comprehensive income 17,636,921 8,773,525 8,863,396 101% NOI (1) 10,417,458 7,126,776 3,290,682 46% FFO (1) 7,820,191 5,149,863 2,670,328 52% Recurring FFO (1)(2) 7,848,006 5,139,573 2,708,433 53% AFFO (1) 7,234,005 4,747,684 2,486,321 52% EBITDA 21,336,069 10,334,813 11,001,256 106% Adjusted EBITDA (1) 10,716,808 7,074,997 3,641,811 51% Investment properties 225,342,146 140,230,496 85,111,650 61% Adjusted investment properties (3) 268,241,443 171,615,448 96,625,995 56% Total assets 254,507,121 159,169,429 95,337,692 60% Total mortgage/loans/long term debt (4) 118,970,214 73,912,110 45,058,104 61% (including revolving line of credit) 118,970,214 79,247,110 39,723,104 50% Total convertible debentures 8,228,420 3,004,263 5,224,157 174% Total equity 123,207,391 74,303,173 48,904,218 66% Weighted average units o/s - basic 18,030,472 14,239,993 3,790,479 27% Amounts on a per unit basis FFO 0.434 0.362 0.072 20% Recurring FFO 0.435 0.361 0.074 21% AFFO 0.401 0.333 0.068 20% Distributions 0.225 0.192 0.033 17% Financial ratios Weighted avg. interest rate - fixed loans/mortgages 3.42% 3.73% (0.31%) Debt to gross assets - including converts 50% 52% (2%) Debt to gross assets - excluding converts 47% 50% (3%) Interest coverage ratio 3.2x 3.0x 0.2x Debt service coverage ratio 1.9x 1.9x - Distributions as a % of FFO per unit 52% 53% (1%) Distributions as a % of Recurring FFO per unit 52% 53% (1%) Distributions as a % of AFFO per unit 56% 57% (1%) Leasing information Occupancy 99% 99% - Mix of tenancy based on NOI (5) National 89% 83% 6% Regional 9% 14% (5%) Local 2% 3% (1%) Breakdown of NOI per property type (5) Retail 55% 34% 21% National service-station and c-store chains 27% 42% (15%) Quick Service Restaurants 16% 22% (6%) Other 2% 2% - 100% 100% - Number of properties 86 66 20 Other Average term to maturity - mortgages (years) 6.1 5.5 0.6 Average term to maturity - leases (years) 7.8 7.9 (0.1) IFRS capitalization rate 6.13% 6.43% (0.30%) See appropriate sections for reconciliation to the closest IFRS measure and section "Explanation of non-IFRS financial measures" Recurring FFO excludes ''Other revenues'' as presented on the Consolidated Financial Statements Adjusted Investment Properties includes the Trust's proportionate share of value of investment properties owned through joint ventures; Refer to Note 4 Properties and Note 5 ([1] value of developed properties, [2] leased properties and [3] properties under development) in Canadian Net's Consolidated Financial Statements Excludes convertible debentures Includes the Trust's proportionate share of NOI from properties held through joint ventures 1 Canadian Net Real Estate Investment Trust HISTORICAL SELECTED FINANCIAL PERFORMANCE $0.49 $0.41 $0.37 $0.32 $0.25 $0.26 $0.13 $0.18 $0.19 $0.21 $0.18 $0.20 $0.22 $0.16 $0.16 $0.13 $0.14 $0.15 $0.05 n/a 2011 2012 2013 2014 2015* 2016* 2017* 2018* 2019* 2020* FFO/unit Distribution/unit *Recurring FFO: See appropriate sections for reconciliation to the closest IFRS measure and section "Non-IFRS financial measures" TENANT OVERVIEW - PERIOD ENDED SEPTEMBER 30, 2021 TOP 10 TENANTS (80%) (1) 3% 4% 4% 24% 20% 10% 11% 5% 6% 6% 7% (2) Groupe (4) (5) (6) (7) Other BSG (3) Notes: Based on Net Operating Income (''NOI''); Includes the Trust's proportionate share of NOI from properties held through joint ventures Parkland Fuel Corporation operates service-stations under the Ultramar and Esso Banners Groupe BSG is a large regional service-station operator operating under various banners Metro operates grocery stores under the Metro, Super C and Food Basics banners Suncor operates Petro-Canadaservice-stations Sobeys operates IGA grocery stores, Shell service-stations and Sobeys Fast Fuel service-stations Loblaws operates the Pharmaprix pharmacies and the Provigo, Maxi, Independent's and Atlantic Superstore grocery banners 2 Canadian Net Real Estate Investment Trust BREAKDOWN OF PROPERTIES & OPERATING SECTORS Area (sf) # Address City/Province Type Ownership Land Building CNET % Status 1 40-50 Brunet Street Mont St-Hilaire, Qc QSR, gas, c-store 100% 69 K 5,452 5,452 Income producing 2 230 St-Luc Blvd. St-Jean-sur-Richelieu, Qc Gas, c-store 100% 65 K 8,359 8,359 Income producing 3 196 Hôtel-de-Ville Blvd. Rivière-du-Loup, Qc Gas, c-store 100% 14 K 2,400 2,400 Income producing 4 1349-1351 Road 117 Val-David, Qc QSR, gas, c-store 100% 36 K 4,748 4,748 Income producing 5 275 Barkoff Street Trois-Rivières, Qc Gas, c-store 65% 60 K 2,400 1,560 Income producing 6 530 Barkoff Street Cap-de-la-madeleine, Qc Gas, c-store 50% 30 K 2,641 1,321 Income producing 7 340-344 Montée du Comté Les Coteaux, Qc QSR, gas, c-store 100% 67 K 8,071 8,071 Income producing 8 1440-50St-Laurent East Blvd. Louiseville, Qc QSR, gas, c-store 50% 115 K 6,132 3,066 Income producing 9 1460 St-Laurent East Blvd. Louiseville, Qc QSR 50% 37 K 4,841 2,421 Income producing 10 490-494 De L'Atrium Blvd. Québec City, Qc Gas, c-store 100% 34 K 6,574 6,574 Income producing 11 7335 Guillaume Couture Blvd. Lévis, Qc QSR 100% 30 K 2,860 2,860 Income producing 12 1319 Brookdale Avenue Cornwall, On QSR 100% 33 K 3,127 3,127 Income producing 13 4200 Bernard-Pilon Street St-Mathieu de Beloeil, Qc Gas, c-store 100% 20 K 1,200 1,200 Income producing 14 1901 Raymond Blais Street Sainte-Julie, Qc Gas, c-store 100% 27 K 1,392 1,392 Income producing 15 2000 Leonard de Vinci Street Sainte-Julie, Qc QSR 100% 39 K 4,575 4,575 Income producing 16 2050 Leonard de Vinci Street Sainte-Julie, Qc Gas 100% 86 K 1,255 1,255 Income producing 17 2051 Nobel Street Sainte-Julie, Qc QSR 100% 50 K 5,975 5,975 Income producing 18 16920-16930St-Louis Ave. St-Hyacinthe, Qc QSR, gas, c-store 100% 70 K 6,290 6,290 Income producing 19 3726 Des Forges Blvd. Trois-Rivières, Qc QSR 100% 19 K 3,360 3,360 Income producing 20 2871-2885 Des Prairies Street Trois-Rivières, Qc QSR, gas, c-store 100% 60 K 6,662 6,662 Income producing 21 2350 Chemin des Patriotes Richelieu, Qc QSR, gas, c-store 100% 48 K 4,851 4,851 Income producing 22 4932 Des Sources Blvd. Pierrefonds, Qc QSR 100% 23 K 2,716 2,716 Income producing 23 314 De Montigny Street St-Jérôme, Qc QSR 100% 24 K 2,832 2,832 Income producing 24 288 Valmont Street Repentigny, Qc Gas, c-store 100% 22 K 2,400 2,400 Income producing 25 2439 Ste Sophie Blvd. Sainte-Sophie, Qc Gas, c-store 95% 58 K 4,856 4,613 Income producing 26 2429 Sainte-Sophie Blvd. Sainte-Sophie , Qc QSR 95% 45 K 3,710 3,525 Income producing 27 610 Saint-Joseph Blvd. Gatineau, Qc Other 100% 13 K 3,372 3,372 Income producing 28 513 Des Laurentides Blvd. Laval, Qc Other 100% 12 K 3,019 3,019 Income producing 29 123 St-Laurent East Blvd St-Eustache, Qc Gas, c-store 100% 22 K 3,846 3,846 Income producing 30 4 North Street Waterloo, Qc Gas, c-store 100% 14 K 2,845 2,845 Income producing 31 3355 de la Pérade Street Quebec City, Qc Retail 100% 142 K 28,894 28,894 Income producing 32 2555 Montmorency Blvd Quebec City, Qc Retail 100% 110 K 25,480 25,480 Income producing 33 3592 Laval Street Lac Mégantic, Qc Gas, c-store 100% 20 K 1,777 1,777 Income producing 34 536 Algonquin Blvd. Timmins, On QSR 100% 102 K 2,690 2,690 Income producing 35 1730 Jules Vernes Ave. Cap Rouge, Qc QSR 50% 38 K 4,100 2,050 Income producing 36 235 Montée Paiement Gatineau, Qc Retail 100% 149 K 25,706 25,706 Income producing 37 510 Bethany Ave. Lachute, Qc QSR, gas, c-store 50% 113 K 11,910 5,955 Income producing 38 1337 Iberville Blvd. Repentigny, Qc Retail 100% 57 K 17,050 17,050 Income producing 39 222 St-Jean-Baptiste Blvd. Mercier, Qc QSR, gas, c-store 82.5% 70 K 9,488 7,828 Income producing 40 230 St-Jean-Baptiste Boul. Mercier, Qc QSR 82.5% 33 K 4,165 3,436 Income producing 41 101 Hébert Street Mont-Laurier, Qc Retail 100% 350 K 37,530 37,530 Income producing 42 290 Mgr. Langlois Blvd. Valleyfield, Qc QSR, gas, c-store 50% 107 K 10,114 5,057 Income producing 43 510 Portland Street Dartmouth, NS QSR 100% 32 K 4,631 4,631 Income producing 44 20 Frontenac Ouest Blvd. Thetford Mines, Qc QSR 100% 30 K 2,400 2,400 Income producing 45 975 Wilkinson Ave. Dartmouth, NS QSR, gas, c-store 50% 85 K 7,975 3,988 Income producing 46 1501 Jacques Bedard Street Quebec City, Qc Retail 100% 152 K 24,652 24,652 Income producing 47 852 Laure Boulevard Sept Iles, Qc QSR 100% 28 K 3,239 3,239 Income producing 3 Canadian Net Real Estate Investment Trust Area (sf) # Address City/Province Type Ownership Land Building CNET % Status 48 87-91 Starrs Road Yarmouth, NS Gas, c-store 100% 62 K 3,335 3,335 Income producing 49 4675 Shawinigan Sud Blvd. Shawinigan, Qc QSR, gas, c-store 50% 101 K 7,126 3,563 Income producing 50 480 Bethany Ave. Lachute, Qc Retail 100% 492 K 75,681 75,681 Income producing 51 484 Bethany Ave. Lachute, Qc QSR 100% 32 K 3,037 3,037 Income producing 52 2077 Laurentides Blvd. Laval, Qc Retail 100% 31 K 9,462 9,462 Income producing 53 111-117 Desjardins Bvld. Maniwaki, Qc Retail 100% 45 K 16,085 16,085 Income producing 54 550 Laflèche Boulevard Baie Comeau, Qc Retail 100% 102 K 19,676 19,676 Income producing 55 304 LaSalle Boulevard Baie Comeau, Qc QSR 100% 13 K 3,300 3,300 Income producing 56 35 route 201 Coteau-du-Lac, Qc QSR, gas, c-store 50% 31 K 4,500 2,250 Income producing 57 835 Lucien Chenier Farnham, Qc QSR, gas, c-store 100% 89 K 7,000 7,000 Income producing 58 24 Miikana Way Kenora, On Retail 100% 534 K 80,881 80,881 Income producing 59 1410 Principale Street St-Etienne-des-Grès, Qc QSR, gas, c-store 75% 26 K 4,122 3,092 Income producing 60 2505 Saint-Louis Street Gatineau, Qc Retail 100% 88 K 25,389 25,389 Income producing 61 124 Beech Hill Road Antigonish, NS QSR, gas, c-store 50% 176 K 4,040 2,020 Income producing 62 16670 Des Acadiens Blvd. Bécancour, Qc QSR, gas, c-store 75% 14 K 3,600 2,700 Income producing 63 1875 Sainte-Marguerite Street Trois-Rivières, Qc Gas, c-store 75% 19 K 2,400 1,800 Income producing 64 5100 Wilfrid Hamel Blvd. Quebec City, Qc Gas, c-store 50% 26 K 3,077 1,539 Income producing 65 369 St-Charles Street West Longueuil, Qc Gas, c-store 50% 15 K 2,578 1,289 Income producing 66 1305-1375 Sherbrooke Street Magog, Qc QSR, gas, c-store 50% 38 K 8,900 4,450 Under development 67 250 Saint-Antoine Nord Street Lavaltrie, Qc Retail 100% 87 K 22,794 22,794 Income producing 68 524-534Saint-Joseph Blvd. Drummondville, Qc QSR 50% 26 K 7,684 3,842 Income producing 69 570 Saint-Joseph Blvd. Drummondville, Qc QSR 50% 52 K 3,855 1,928 Income producing 70 491 Seigneuriale Street Quebec City, Qc Retail 100% 103 K 21,303 21,303 Income producing 71 150 St-Alphonse Blvd. Roberval, Qc Retail 100% 207 K 43,378 43,378 Income producing 72 15 McChesney Ave. Kirkland Lake, ON Retail 100% 200 K 45,157 45,157 Income producing 73 394 Westville Road New Glasgow, NS Retail 100% 487 K 90,800 90,800 Income producing 74 1225 Kings Street Sydney, NS Retail 100% 155 K 47,189 47,189 Income producing 75 478 Ch. Knowlton Lac Brome, Qc QSR, gas, c-store 100% 51 K 4,500 4,500 Income producing 76 14 Sunset Road Pictou, NS QSR, gas, c-store 50% 129 K 5,460 2,730 Income producing 77 Laurier Boulevard Terrebonne, Qc QSR 40% 35 K 3,885 1,554 Under development 78 7751-7811Roi-Rene Blvd. Anjou, Qc QSR 40% 33 K 5,800 2,320 Under development 79 10 700 Ch. Cote-de-Liesse Lachine, Qc Gas 100% 37 K 395 395 Income producing 80 860 D'Alma Street Chicoutimi, Qc QSR 40% 40 K 3,885 1,554 Under development 81 135 Barton Street East Hamilton, ON Retail 100% 153 K 37,509 37,509 Income producing 82 95-103 Water Street North Cambridge, ON Retail 100% 122 K 38,500 38,500 Income producing 83 107 Bridge Street Dunnville, ON Retail 100% 91 K 27,651 27,651 Income producing 84 199 Simcoe Avenue Keswick, ON Retail 100% 106 K 27,838 27,838 Income producing 85 1035 Wilfrid-Hamel Blvd. Quebec City, Qc Retail 100% 98 K 27,400 27,400 Income producing 86 2 Saint-Martin Street Bromont, Qc QSR 100% 6 K 5,703 5,703 Income producing 87 Serge Pépin Street* Beloeil, Qc QSR 40% 25 K 3,885 1,554 Under development 88 Montée des Pionniers* Lachenaie, Qc QSR 40% 24 K 3,885 1,554 Under development QSR: Quick Service Restaurant 7,061 K 1,107,207 1,040,748 *Acquired after September 30, 2021 4 This is an excerpt of the original content. 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