Rfa Financial Inc. · TSX:RFA
Rfa Financial — Artis Real Estate Investment Trust — Q2 2016 Earnings Presentation
16 slides from Rfa Financial's earnings presentation, August 2016
Slide 1: Artis Real Estate Investment Trust Investor Presentation Q2 2016
Artis Real Estate Investment Trust Investor Presentation Q2 – 2016 PROPERTIES OF SUCCESS 1
Slide 2: Forward-Looking Statements
ARTIS REAL ESTATE INVESTMENT TRUST FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the wor
Slide 3: Our Strategy and Business Model
ARTIS REAL ESTATE INVESTMENT TRUST OUR STRATEGY AND BUSINESS MODEL 1.GEOGRAPHIC DIVERSIFICATION Canada and select U.S. markets 2. PRODUCT DIVERSIFICATION Commercial real estate only Office Retail Industrial 3. INTERNAL GROWTH Results driven active asset management and new developments In
Slide 4: Portfolio Overview
ARTIS REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW FORT McMURRAY 3 ASSET CLASSES 10 MAJOR MARKETS GRANDE PRAIRIE EDSON EDMONTON SASKATOON RED DEER CALGARY REGINA OTTAWA WINNIPEG KELOWNA NANAIAMO METRO ESTEVAN VANCOUVER CRANBROOK MEDICINE HAT RETAIL MINNEAPOLIS GTA OFFICE INDUSTRIAL TORONTO DENVER
Slide 5: Portfolio Diversification
ARTIS REAL ESTATE INVESTMENT TRUST PORTFOLIO DIVERSIFICATION NOI By Asset NOI By Geographical Class: Region: ON MB Industrial SK 10% 12% BC 24% 6% 5% Office 54% USA AB Retail 34% 33% 22% 8333 Greenway, Madison WI 5 Pro forma Property NOI for three months ended June 30, 2016, inclusive of Artis’ prop
Slide 6: Tenant Diversification
ARTIS REAL ESTATE INVESTMENT TRUST TENANT DIVERSIFICATION Top Ten Tenants 58% of Artis’ tenants are government or national Regional & Local 42% Gov't & National 58% Artis’ top 10 and top 20 tenants account for 11.6% and 19.3% of gross revenue, respectively 601 Tower at Carlson, Minneapolis MN All in
Slide 7: Lease Expiration Schedule
ARTIS REAL ESTATE INVESTMENT TRUST LEASE EXPIRATION SCHEDULE • 47.9% of 2016 expiries have been renewed or committed to new tenants • Weighted-average rental increase on renewals in YTD-2016 was 4.4% • YTD-2016 Same Property NOI growth was 0.2% over the same period in 2015 25.0% 20.0% 15.0% 12.0% 11
Slide 8: Schedule of Mortgage Maturities
ARTIS REAL ESTATE INVESTMENT TRUST SCHEDULE OF MORTGAGE MATURITIES At June 30, 2016 (1): $589 Total Debt to GBV – 52.9% $600 Secured Mortgage Debt to GBV – 40.9% $42 Interest Coverage Ratio YTD – 2.90 times Weighted-average interest rate – 3.71% $500 Weighted-average term – 3.7 yrs Fixed Debt Variab
Slide 9: Leverage Profile
ARTIS REAL ESTATE INVESTMENT TRUST LEVERAGE PROFILE Healthy Balance Sheet and Liquidity Fiscal quarter ending: June 30, December 31, June 30, 2015 2015 2016 Debt: GBV 49.0% 52.4% 52.9% Secured mortgages and 39.9% 41.2% 40.9% loans: GBV Unencumbered assets $985 million $1,060 million $1,035 million E
Slide 10: Select Financial Information
ARTIS REAL ESTATE INVESTMENT TRUST SELECT FINANCIAL INFORMATION $600 $553 $500 $509 $400 $467 $342 $300 $299 $317 $200 $100 2013 2014 2015 2 2013 2014 2015 $0 (1) (1) Property NOI Revenue (In millions) (In millions) $1.70 $1.51 $1.28 $1.49 $1.41 $1.42 $1.20 $1.21 $1.23 $1.30 $0.70 2013(2) 2014(2) 20
Slide 11: Recently Completed Development Projects
ARTIS REAL ESTATE INVESTMENT TRUST RECENTLY COMPLETED DEVELOPMENT PROJECTS Fourell Business Park, Edmonton, AB Approximate cost: $14.1M (Phase I and II) Centrepoint, Winnipeg, MB Linden Ridge Shopping Centre, Winnipeg, MB Approximate cost: $70.0M (Artis owns 50% interest) Approximate cost: $23.3M 11
Slide 12: Current and Future Development Projects
ARTIS REAL ESTATE INVESTMENT TRUST CURRENT AND FUTURE DEVELOPMENT PROJECTS Park 8Ninety, Houston, TX 801 Carlson, Minneapolis, MN Park Lucero, Phoenix, AZ 12
Slide 13: Market and Analyst Information
ARTIS REAL ESTATE INVESTMENT TRUST MARKET AND ANALYST INFORMATION Information as of August 2016: Unit price: $13.25 Distribution per unit: $1.08 Yield: 8.2% Market cap: $2.0B Analyst Consensus Information (1) 2016 2017 Target price: $14.25 Consensus AFFO FFO AFFO FFO Net Asset Value: $14.81 Per Unit
Slide 14: Drivers of Growth
ARTIS REAL ESTATE INVESTMENT TRUST DRIVERS OF GROWTH TWO MARKETPOINTE MINNEAPOLIS, MN Artis’ portfolio is well diversified in strong markets with healthy economic growth and real estate fundamentals. Artis’ key drivers of growth include maintaining high occupancy levels, realizing the gap between in
Slide 15: Portfolio Overview
ARTIS REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW FORT McMURRAY 3 ASSET CLASSES 10 MAJOR MARKETS GRANDE PRAIRIE EDSON EDMONTON SASKATOON RED DEER CALGARY REGINA OTTAWA WINNIPEG KELOWNA NANAIAMO METRO ESTEVAN VANCOUVER CRANBROOK MEDICINE HAT RETAIL MINNEAPOLIS GTA OFFICE INDUSTRIAL TORONTO DENVER
Slide 16: Artis Real Estate Investment Trust
Artis Real Estate Investment Trust Investor Presentation Q2 – 2016 PROPERTIES OF SUCCESS 16
Artis Real Estate Investment Trust — Q2 2016 Earnings Presentation on 6ix