Pro Real Estate Investment Trust · TSX:PRV.UN
Pro Real Estate Investment Trust — Proreit — Investor Presentation (November 2021)
25 slides from Pro Real Estate Investment Trust's investor presentation, Nov 10, 2021
Slide 1: Built for Growth and Performance
BUILT FOR GROWTH AND PERFORMANCE INVESTOR PRESENTATION NOVEMBER 2021 INVESTOR PRESENTATION | NOVEMBER 2021 1
Slide 2: Built for Growth and Performance
BUILT FOR GROWTH AND PERFORMANCE INVESTOR PRESENTATION | NOVEMBER 2021 2
Slide 3: Disclaimer
DISCLAIMER About this Presentation This presentation is dated November 10, 2021 and is strictly intended to provide general information about PRO Real Estate Investment Trust (“PROREIT”) and its business. This presentation does not constitute an offer to sell or the solicitation of an offer to buy a
Slide 4: PROREIT (PRV.UN) at a Glance
PROREIT (PRV.UN) AT A GLANCE Owns and operates a commercial real estate 120 PROPERTIES IN (2) $928M TOTAL ASSETS (2) 6.6M GROSS LEASABLE (2) portfolio with an 10 PROVINCES AREA (SQ. FT) industrial focus, located FOCUS ON CENTRAL AND in mid-sized Canadian 98.5% $0.45 EASTERN CANADA (1) cities with st
Slide 5: High Quality Portfolio with Strong Industrial Focus
HIGH QUALITY PORTFOLIO WITH STRONG INDUSTRIAL FOCUS (1) INDUSTRIAL PORTFOLIO RETAIL PORTFOLIO OFFICE PORTFOLIO 78% of GLA 15% of GLA 7% of GLA > Multi-tenant and single- > High-quality community > Mainly suburban and tenant properties in high- service centres mixed use flex office demand industrial
Slide 6: Taking PROREIT to the Next Level
TAKING PROREIT TO THE NEXT LEVEL WHAT DIFFERENTIATES US IS OUR ABILITY TO IDENTIFY AND BUILD A AMBITION Reach a $1B market cap industrial- focused REIT owning and operating STABLE, LOW RISK PORTFOLIO IN STRONG SECONDARY high-quality properties in mid-size MARKETS WHERE Canadian cities with strong ec
Slide 7: Track Record of Driving Value
TRACK RECORD OF DRIVING VALUE BASE RENT BY ASSET CLASS (%) BASE RENT BY REGION (%) Retail Office Maritime Provinces Quebec Industrial Ontario Western Canada 14.9 11.0 14.5 16.0 26.0 36.0 14.4 42.0 10.0 47.0 29.1 27.0 49.1 63.0 Q4-2020(1) Current Portfolio(2) Q4-2020(1) Current Portfolio(2) GROWING E
Slide 8: Strong Growth Since Inception
STRONG GROWTH SINCE INCEPTION TOTAL ASSETS AND OCCUPANCY PROPERTY REVENUES ADJUSTED FUNDS FROM OPERATIONS(4) ($ Millions) ($ Millions) ($ Millions) 69.810 1000 70 40 98.5%(2) 900 928.0 60 57.627 800 700 CAGR(1) 50 CAGR (1) 30 CAGR (1) 98.4% 98.0% 37% 71% 40.889 49% 600 634.7 634.5 22.436 98.2% 40 20
Slide 9: Our Growth History
OUR GROWTH HISTORY NEXT STAGE OF A BREAKOUT GROWTH YEAR > 91 properties, > 120 properties, PROREIT CREATION > Internalization 4.5M sq. ft. 6.6M sq. ft. GLA BY FORMER CANMARC of asset GLA > Acquisition of 34 MANAGEMENT > Achieved management > Acquisition industrial properties > One $6M property, $500
Slide 10: Fully Internalized Property Management Function
FULLY INTERNALIZED PROPERTY MANAGEMENT FUNCTION > Acquired in 2018, Compass Commercial Realty is a >$1B 8.3M long established group operating autonomously from ASSET VALUE SQ.FT MANAGED Halifax (headquarters) - Offices in Halifax, Moncton, Montreal and Oakville 177 114 > Significant room for platfor
Slide 11: Returning to Market in Growth Mode in 2021
RETURNING TO MARKET IN GROWTH MODE IN 2021 > Accretive acquisition of 34 institutional-caliber +1.2M STRATEGICALLY DEPLOYING SQ. FT OF GLA industrial assets for CAPITAL TO $297M in 2021 CREATE LONG-TERM - 21 properties in Atlantic Canada - 10 properties in Winnipeg, 6% AVERAGE VALUE Manitoba CAPITAL
Slide 12: 2021 Transactions
2021 TRANSACTIONS Number of GLA Transaction Capitalisation Date closed City Properties (in sq.ft) Price (in $ Rate Highlight million) Acquisitions 100% interest in three small bay industrial April 23, 2021 Ottawa (ON) 3 283,495 49.2 6.1 buildings strategically located withing core industrial submark
Slide 13: 2021 Financing Highlights
2021 FINANCING HIGHLIGHTS EQUITY DEBT > April 2021: $50M private > $71.4M in mortgage > CREDIT FACILITY placement with Bragg financing at lower EXPANDED ON Group, a prominent rates and extended IMPROVED Canadian private terms TERMS TO $60M investor > Eliminated expensive > October 2021: $83.3M alter
Slide 14: Q3-2021 Financial Highlights
Q3-2021 FINANCIAL HIGHLIGHTS > Property revenue of $19.6M, up 13.2% from Q3-2020 > Net operating income(1) of $12.1M, up 16.4% from Q3-2020 > Net income and comprehensive income of $4.1M, compared to a net loss and comprehensive loss of $0.7M in Q3-2020 > AFFO(1) of $6.6M, up 11.8% from Q3-2020 > De
Slide 15: Robust Internal Growth
ROBUST INTERNAL GROWTH YoY YoY 3 Months Ended 9 Months Ended 9 Months Ended Same property NOI1 by asset class 3 Months Ended September 30, 2021 September 30, 2021 September 30, 2021 September 30, 2021 Retail $3.4M ↑ 8.7% $10.0 ↑ 3.6% Office $1.6M ↑ 5.9% $4.7 ↑ 3.7% Industrial $5.0M ↑ 3.6% $14.4 ↑ 3.
Slide 16: Significant Value Embedded in Portfolio
SIGNIFICANT VALUE EMBEDDED IN PORTFOLIO(1) Weighted Avg Weighted Avg Asset Class Leased GLA In-Place Net Spread Market Net Rent Rent GROWTH OPPORTUNITIES Retail 962,866 $14.87 $15.27 3% WITHIN PORTFOLIO: Office 433,247 $14.94 $16.04 7% - Important mark-to-market rental rate upside Industrial 5,036,0
Slide 17: High Quality, Low Risk Portfolio
HIGH QUALITY, LOW RISK PORTFOLIO OPERATING HIGHLIGHTS STAGGERED LEASE MATURITY PROFILE 53.8% As at September 30, 2021 Number of Occupancy GLA WALT GLA Asset Class Properties (%)(1) (sq. ft.) (years) Base Rent Retail 45 97.7 988,978 5.1 51.9% Office 9 91.1 468,526 4.2 16.1% 10.1% 10.2% 9.1% Industria
Slide 18: Top Ten Tenants
TOP TEN TENANTS AS AT SEPTEMBER 30, 2021 # Tenant % of In-Place Base Rent (1) GLA (sq. ft.) WALT (2) (years) Credit Rating (3) 77% OF BASE RENT 1 5.2% 104,929 7.8 Baa2/BBB+/na FROM NATIONAL AND 2 5.0% 222,491 5.9 na/BBB-/BBB- GOVERNMENT TENANTS 3 4.8% 127,334 3.3 Ba1/BB+/BBB- 4 4.0% 326,061 4.4 BBB/
Slide 19: Sound and Flexible Capital Structure
SOUND AND FLEXIBLE CAPITAL STRUCTURE At Sept. 30, 2021 DEBT MATURITY PROFILE As of September 30, 2021 Debt to gross book value(1) 58.19% Debt Maturing During Year Payments of Principal Total debt $448.8M 140 $127.8 Total debt weighted average rate 3.50% $125.3 120 Total first mortgage debt 5.1 years
Slide 20: Key Strategic Pillars to Create Long-Term Value
KEY STRATEGIC PILLARS TO CREATE LONG-TERM VALUE INCREASE DIVERSIFY BY ASSET OPTIMIZE BALANCE SCALE CLASS, TENANCIES SHEET AND CAPITAL AND GEOGRAPHY ALLOCATION > Reach $2B in asset value > Continue to focus on > Reduce debt to equity ratio in medium term class B, high-quality and net debt to EBITDA c
Slide 21: Experienced and Aligned Management and Board
EXPERIENCED AND ALIGNED MANAGEMENT AND BOARD SENIOR MANAGEMENT TEAM INDEPENDENT BOARD OF TRUSTEES John Levitt Independent Trustee and Chair of the Board Peter Aghar Independent Trustee Vincent Chiara Independent Trustee James W. Beckerleg Gordon Lawlor, CPA, CA Chief Executive Officer Executive Vice
Slide 22: Why Invest in PROREIT
WHY INVEST IN PROREIT > High quality industrial-focused portfolio > Ample liquidity, stable cash flows with resilient low-risk tenants and strong balance sheet > Significant value embedded in portfolio > Fully internalized asset and > Clear strategy to grow earnings and property management net asset
Slide 23: Appendices
APPENDICES 23 INVESTOR PRESENTATION | NOVEMBER 2021 23
Slide 24: We've Done It Before
WE’VE DONE IT BEFORE 100% S&P/TSX Capped REIT Index CANMARC REIT 75% 50% 25% 0% May-2010 Jul-2010 Sep-2010 Nov-2010 Jan-2011 Mar-2011 May-2011 Jul-2011 Sep-2011 Nov-2011 Jan-2012 > Former CANMARC REIT management > Diversified REIT with national portfolio > 143 properties > Acquired by Cominar in 201
Slide 25: Thank you
Thank you INVESTOR PRESENTATION | NOVEMBER 2021 25