Crombie Real Estate Investment Trust · TSX:CRR.UN
Crombie Real Estate Investment Trust — Q2 2019 Earnings Presentation
20 slides from Crombie Real Estate Investment Trust's earnings presentation, Aug 8, 2019
Slide 1: Unlocking Value
Unlocking Value Q2 2019 Results Conference Call August 8th, 2019
Slide 2: Forward-looking Information
Forward-looking Information This presentation contains forward-looking statements that reflect the current expectations of management of Crombie about Crombie's future results, performance, achievements, prospects and opportunities. Wherever possible, words such as "continue", "may", "will", "estima
Slide 3: Opening Remarks
Opening Remarks Don Clow President & CEO
Slide 4: Unlocking Value
Unlocking Value Focused Strategy ▪ Sobeys/Empire ▪ Modernizations ▪ Land Use Intensifications ▪ Major Mixed-Use Development ▪ Strong Fundamentals ▪ 2.7% same-asset NOI growth1 ▪ 6.7% renewal growth over expiring rates ▪ Committed occupancy of 95.9% ▪ Access to multiple and innovative sources of capi
Slide 5: Sobeys – Winning Grocery Retail
Sobeys – Winning Grocery Retail Aggressively Building, Adapting & Growing Expanding FreshCo to the West Investing in Bricks-and-Mortar Leading Edge Omnichannel Technology Market Intelligence Aligned Interests Access to VECTOM at Reasonable Pricing Accelerating Major Mixed-Use Developments 5
Slide 6: Material NAV Creation
Material NAV Creation $610M Investment in First 6 Major Developments Davie Belmont Street Bronte Avalon Village Mall $1-2 NAV/Unit Pointe- Le Duke Completed in Claire 1-2yrs1 ¹Avalon Phase I excluded and assumes NAV creation equals difference between Crombie’s current estimated stabilized value base
Slide 7: Acquisitions Dispositions
Overview Creatively executing Real Estate Transactions various types of partial interest property dispositions Capital Recycling Program Transaction Phase Value 2018 $260M 2019 Closed YTD $293M Dispositions Dispositions Closed executed in line $49M with IFRS FV Subsequent Committed $193M Sub Total $
Slide 8: Development & Operational Highlights
Development & Operational Highlights Glenn Hynes EVP & COO
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: Avalon Mall, St. John’s, NL
Avalon Mall, St. John’s, NL Dominant Enclosed Shopping Centre Over 53k sf executed with H&M, Old Navy & GAP/Banana Republic Phase II: $58M = CRU + Extension + Pad Site 10
Slide 11: Belmont Market, Langford, (Victoria), BC
Belmont Market, Langford, (Victoria), BC Upgrading by Developing A+ Real Estate Committed occupancy of 92.9% $93M Premier retail destination = 160k sf of grocery, restaurants, & complementary retail & office 11
Slide 12: 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 ¹At Crombie’s share, this project is being developed at a 50% JV interest 12
Slide 13: Bronte Village, Oakville, ON
Bronte Village, Oakville, ON Building Community in Major Urban Centres Below-grade parking structure underway $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 13
Slide 14: Pointe-Claire CFC, Pointe-Claire, QC
Pointe-Claire CFC¹, Pointe-Claire, QC Empire’s State-of-the-art e-commerce CFC Future home of Voilà par IGA e-commerce hub ¹CFC = Customer Fulfillment Centre 14
Slide 15: Q2’19 Operational Highlights
Q2’19 Operational Highlights Stable, Predictable Results Q2’19 Leasing Renewals Square Feet Rate PSF Growth Solid 2019 YTD 2019 Renewals 116,000 $14.51 6.5% Retail Renewals at Future Year 6.8% on 127k sf 1,000 $29.00 13.7% Renewals Total 117,000 $14.69 6.7% Strong Occupancy Levels 96.1% 96.2% 96.0%
Slide 16: Financial Highlights
Financial Highlights Clinton Keay CFO & Secretary
Slide 17: Q2’19 Financial Highlights
Q2’19 Financial Highlights Stable, Predictable Results FFO/AFFO per Unit $0.31 $0.29 $0.26 $0.25 Results driven by rental rate increases, new leases and revenue from land use intensifications FFO/Unit AFFO/Unit Q2'18 Q2'19 SANOI Growth¹ FFO/AFFO Payout Ratio 3.3% 3.4% 89.9% 85.3% 2.7% 72.7% 75.7% 1.
Slide 18: Financial Highlights
Financial Highlights Investment Grade, with Flexible Balance Sheet 1.92x Debt $954M 8.21x Debt to 3.00x Interest BBB Low Stable $413M¹ Bank Service Unencumbered 4.19% WAIR² 3.8yrs WATM³ EBITDA Coverage by DBRS Credit Capacity Coverage Assets Debt to GBV (FV)⁴ Unencumbered assets account for 21% of 5
Slide 19: Strategic Capital Allocation
Strategic Capital Allocation Highest & Best Use • Dispositions • Attractive and innovative funding Sources of Capital • Free Cash Flow • Capital Markets • Sobeys • Acquisitions Capital Allocation • Modernizations • Development • Land Use Intensification 19
Slide 20: Unlocking Value
REIT ; i ig bo at a Unlocking Value
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