Crombie Real Estate Investment Trust · TSX:CRR.UN
Crombie Real Estate Investment Trust — Q1 2019 Earnings Presentation
18 slides from Crombie Real Estate Investment Trust's earnings presentation, May 9, 2019
Slide 1: Unlocking Value
Unlocking Value Q1 2019 Results Conference Call May 9th, 2019
Slide 2: "Safe Harbour" Disclosure and Confidentiality Statement
“Safe Harbour” Disclosure and Confidentiality Statement Forward-looking Information This presentation contains forward-looking statements that reflect the current expectations of management of Crombie about Crombie's future results, performance, Forward-looking achievements, prospects and opportunit
Slide 3: Opening Remarks
Opening Remarks Don Clow President & CEO
Slide 4: Unlocking Value
Unlocking Value Focused Strategy with Empire/Sobeys New acquisition and state-of-the-art developments Photo to be updated Developments remain “on track and on budget” Ample liquidity Access to multiple and innovative sources of capital Solid fundamentals with 3.4% same-asset NOI growth Successful ex
Slide 5: 24th Major Development Site
24th Major Development Site Empire’s State-of-the-art e-commerce CFC¹ Leading Edge Omnichannel Technology with Ocado • World’s leading online grocery ordering, automated fulfillment and home delivery solution • Ocado/Empire exclusive partnership in Canada launching online grocery shopping services:
Slide 6: Material NAV Creation
Material NAV Creation $450M¹ Investment in First 5 Major Developments Davie Street Bronte Belmont Village $1-2 NAV/Unit Le Duke Avalon Mall¹ Completed in 1-2yrs² ¹Avalon Phase I excluded, ²Assumes NAV creation equals difference between Crombie’s current estimated stabilized value based on 6 current
Slide 7: Belmont Market, Langford, (Victoria), BC
Belmont Market, Langford, (Victoria), BC Upgrading by Developing A+ Real Estate ~90% of Phase I income producing, Phase II 88% leased $93M Premier retail destination = 160k sf of grocery, restaurants, & complementary retail & office 7
Slide 8: Avalon Mall, St. John's, NL
Avalon Mall, St. John’s, NL Dominant Enclosed Shopping Centre Phase I complete Phase II: $58M = CRU + Extension + Pad Site The Rec Room opened April, 1st Atlantic Canadian location 8
Slide 9: Davie Street, Vancouver, BC
Davie Street, Vancouver, BC Creating Significant Unitholder Value $105M¹ mixed-use development = ~330 residential rental + Safeway + ancillary retail ¹At Crombie’s share, Crombie will own 100% of the retail and 50% of the residential 9
Slide 10: Bronte Village, Oakville, ON
Bronte Village, Oakville, ON Building Community in Major Urban Centres 85% construction budget tendered and approved $139M¹ mixed-use community = ~480 luxury residential rental + Sobeys + ancillary retail ¹At Crombie’s share, this project is being developed at a 50% JV interest 10
Slide 11: Le Duke, Montreal, QC
Le Duke, Montreal, QC Placemaking along the Bonaventure Greenway $62M¹ mixed-use tower = ~390 residential rental + urban format IGA + ancillary retail Photo to be updated ¹At Crombie’s share, this project is being developed at a 50% JV interest 11
Slide 12: Acquisitions Dispositions
Overview Real Estate Transactions Creatively executing various types of partial interest property dispositions Capital Recycling Program Transaction Phase Value Dispositions executed in line Dispositions Closed Q1’19 $106M with IFRS FV Closed $183M Subsequent Sub Total $289M Acquisitions Closed Q1’1
Slide 13: Financial Highlights
Financial Highlights Glenn Hynes EVP, COO, CFO & Secretary
Slide 14: Q1'19 Financial Highlights
Q1’19 Financial Highlights Stable, Predictable Growth FFO/AFFO per Unit $0.30 $0.30 $0.26 $0.26 Growth driven by strong occupancy and revenue from land use intensifications FFO/Unit AFFO/Unit Q1'18 Q1'19 SANOI Growth¹ FFO/AFFO Payout Ratio 3.3% 3.4% 86.9% 87.3% 2.9% 1.9% 73.3% 74.2% SANOI Growth¹ FF
Slide 15: Q1'19 Financial Highlights
Q1’19 Financial Highlights Stable, Predictable Growth Q1’19 Leasing Renewals Square Feet Rate PSF Growth Solid 2019 Retail 2019 Renewals 145,000 $16.53 0.6% Renewals at 5.6% Future Year on 53k sf 38,000 $19.73 (2.8%) Renewals Total 183,000 $17.19 (0.2%) Strong Occupancy Levels 96.1% 96.2% 96.0% 95.7
Slide 16: Financial Highlights
Financial Highlights Investment Grade, with Flexible Balance Sheet 1.87x Debt $1.0B 8.57x Debt to 2.92x Interest BBB Low Stable $346M¹ Bank Service Unencumbered 4.20% WAIR² 4.0yrs WATM³ EBITDA Coverage by DBRS Credit Capacity Coverage Assets Debt to GBV (FV)⁴ Unencumbered assets account for 21% of 4
Slide 17: Strategic Capital Allocation
Strategic Capital Allocation Highest & Best Use • Dispositions • Attractive and innovative funding Sources of Capital • Free Cash Flow • Capital Markets • Development Capital • Acquisitions Deployment • Modernizations • Land Use Intensification 17
Slide 18: Unlocking Value
REIT ; i ig boy 2 a Unlocking Value
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