Crombie Real Estate Investment Trust · TSX:CRR.UN
Crombie Real Estate Investment Trust — Q4 2018 Earnings Presentation
19 slides from Crombie Real Estate Investment Trust's earnings presentation, Feb 28, 2019
Slide 1: Building a Better REIT: Q4 2018 Results Conference Call
Building a Better REIT Q4 2018 Results Conference Call February 28, 2019 12:00pm EST
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: 2018 Overview
2018 Overview Stable, Predictable Cash Flow & NAV Growth ▪ 2.7% growth Same-asset Property Cash NOI ▪ Retail Same-asset NOI of 3.2% ▪ 96.0% Committed Occupancy ▪ Executing on ~$511M¹ in development ▪ 2.8% diluted AFFO per unit growth ▪ $220M in dispositions closed ▪ 2019 YTD $106 million in disposit
Slide 5: Sobeys
Sobeys Aggressively Building, Adapting & Growing Expanding FreshCo to the West Investing in Bricks-and-Mortar Leading Edge Omnichannel Technology • Game-changing Ocado-driven e-commerce business • Will expand presence in under-penetrated GTA Farm Boy Acquisition • Will benefit from Sobeys infrastruc
Slide 6: Acquisitions Dispositions
Overview Real Estate Transactions Capital Recycling Program Transaction Phase Value Acquisitions Dispositions Closed 2018 $220M¹ Closed YTD $106M Dispositions executed in line Sub Total $326M with IFRS FV Closed 2018 $119M ¹Excludes the $40 million sale of Bronte Village into the JV that occurred in
Slide 7: 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 current ma
Slide 8: Belmont Market, Langford, (Victoria), BC
Belmont Market, Langford, (Victoria), BC Upgrading by Developing A+ Real Estate Crombie is Phase II 70% developer leased $93M Premier Retail destination = 160k sf of grocery, restaurants, and complementary retail and office 8
Slide 9: 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 9
Slide 10: Davie Street, Vancouver, BC
Davie Street, Vancouver, BC Potential to Create Significant Economic Value $181M¹ mixed use development = ~330 residential rental + Safeway + ancillary retail Rental rates exceed modeling Podium assumptions complete ¹At 100%, $104.8M at Crombie’s share. Crombie will own 100% of the retail and 50% of
Slide 11: Bronte Village, Oakville, ON
Bronte Village, Oakville, ON Building Community in Major Urban Centres Rexall Construction $277M¹ mixed use Complete community = ~480 luxury residential rental + Sobeys + ancillary retail ¹At 100%, this project will be developed at a 50% JV interest 11
Slide 12: Le Duke, Montreal, QC
Le Duke, Montreal, QC Placemaking along the Bonaventure Greenway $124M¹ mixed use tower = ~390 residential rental + urban format IGA + ancillary retail ¹At 100%, this project will be developed at a 50% JV interest 12
Slide 13: Building a Better REIT: Into the Next Decade & Beyond
Building a Better REIT Into the Next Decade & Beyond Unlock $3- National Portfolio with Extraordinary 4.5B Organic Development Pipeline Development Opportunities Focused on Development Expertise with VECTOM 23 Major 5-30yrs Potential Experience per Developments Individual on 20 Person Team Potential
Slide 14: Financial Highlights
Financial Highlights Glenn Hynes EVP, COO, CFO & Secretary
Slide 15: 2018 Financial Highlights
2018 Financial Highlights Stable, Predictable Cash Flow & NAV Growth FFO/AFFO per Unit $1.20 $1.21 Growth Driven by Strong $1.03 $1.00 Fundamentals Diluted FFO/Unit Diluted AFFO/Unit 2017 2018 SANOI Growth¹ FFO/AFFO Payout Ratio 2.7% 88.9% 86.5% 73.6% 73.2% 1.1% SANOI Growth¹ FFO Payout Ratio AFFO P
Slide 16: 2018 Financial Highlights
2018 Financial Highlights Stable, Predictable Cash Flow & NAV Growth Q4’18 Leasing Renewals Square Feet Rate PSF Growth 2018 Renewals 116,000 $10.74 6.1% Future Year 39,000 $22.40 5.7% Renewals Total 155,000 $13.69 6.0% Strong Occupancy Levels 96.1% 96.2% 96.0% 95.7% 95.2% 94.6% 94.6% 94.7% 94.4% 94
Slide 17: Financial Highlights
Financial Highlights Investment Grade, with Flexible Balance Sheet 2.93x Interest 1.91x Debt $1.0B 8.67x Debt to BBB Low Stable $312M¹ Bank Service Service Unencumbered 4.20% WAIR² 4.2yrs WATM³ EBITDA by DBRS Credit Capacity Coverage Coverage Assets ▪ Improved capital structure: ▪ Two unsecured note
Slide 18: Strategic Capital Allocation Update
Strategic Capital Allocation Update Highest & Best Use • Dispositions Sources of • Free Cash Flow Capital • Capital Markets • Development Capital • Acquisitions Deployment • Land Use Intensification 18
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