Alony Hetz Properties & Investments Ltd. · TASE:ALHE
Alony Hetz Properties & Investments — Carr Properties — Investor Presentation (March 2022)
31 slides from Alony Hetz Properties & Investments's investor presentation, Mar 17, 2022
Slide 1: More Than an Address
MORE THAN AN ADDRESS TODAY’S SPEAKER Oliver T. Carr, III CHIEF EXECUTIVE OFFICER
Slide 2: Agenda
AGENDA I. Who We Are II. Why Carr? III. Strategic Roadmap IV. Strength in Development 2
Slide 3: Who We Are
WHO WE ARE
Slide 4: Carr Properties
Washington, D.C. CARR PROPERTIES 25 250 Year Operating Total History Customers Privately held real estate investment trust that owns, manages, acquires, and 150 161 develops high-quality Full-Time Operating Boston, MA Employees Class A Office properties. Assets 3 PREMIER MARKETS $3.9B $1.5B 16% of R
Slide 5: Established in Three Major U.S. Markets
WASHINGTON METRO AREA ESTABLISHED IN 35% THREE MAJOR WASHINGTON, D.C. Midtown Center Columbia Center The Hub 901K Street U.S. MARKETS 1875 K 2001 Penn 1700 New York Signal House 14% BETHESDA, MD 4500 East-West The Wilson The Elm 6% NORTHERN VA Clarendon Square 2311 Wilson 1701 Duke Street BOSTON, MA
Slide 6: Our Growth
OUR GROWTH UNDER CONSTRUCTION IN DEVELOPMENT FUTURE GROWTH STRATEGY Acquisition & New 1 Development in Existing Markets Evaluate Further Expansion 2 into Additional Innovation Markets ONE CONGRESS BLOCK 16 3 Explore Multi-Family & Mixed-Use BOSTON, MA // 1M SF AUSTIN, TX // 738,000 SF Opportunities
Slide 7: Successful Expansion into Boston & Austin
SUCCESSFUL EXPANSION INTO BOSTON & AUSTIN Entered Austin, TX Acquired Block Acquired Increased Ownership with Acquisition of 16 Development 200 State Street Stake in One Congress to 75% 100 Congress in Austin SEPT JAN MARCH SEPT 2018 2019 2020 2021 Acquired 50% NOV Signed State JULY APRIL Sold 49% J
Slide 8: Why Carr?
WHY CARR?
Slide 9: More Than an Address
MORE THAN AN ADDRESS THE CARR EXPERIENCE TARGET CUSTOMER A company who believes culture is a differentiator, and invests in the well-being of their associates, community, and environment. Thoughtful Design Engaging Moments Distinguished Hospitality THE CARR EXPERIENCE APP 9 // CARR PROPERTIES
Slide 10: Recent Recognitions
RECENT RECOGNITIONS 2020 2021 Project of The Year: 6 Awards of Excellence #1 Best Luxury Apartment: The Wilson including Firm of the Year The Elm MD Lease Transaction of the Year: Walker & Dunlop at The Wilson Project of the Year & Best Mixed-Use Best Use of Automation Development: The in the Commer
Slide 11: Why Carr?
WHY CARR? IRREPLACEABLE CLASS A COMPETITIVE ADVANTAGE: INVESTMENT OFFICE PORTFOLIO & DEVELOPMENT EXPERTISE Recognized Over 88% 93% $500M Occupied Leased of Development Gains since Alony Hetz’s Higher than Market Average1 Investment in 2013 STRONG BALANCE SHEET & CONSERVATIVE FINANCIAL MANAGEMENT $3.
Slide 12: Proven Track Record of Delivering Superior Investor Returns
PROVEN TRACK RECORD OF DELIVERING SUPERIOR INVESTOR RETURNS Total Return 1 from August 2013 – December 2021 CARR HAS CARR PEER AVERAGE OUTPERFORMED ITS PUBLIC REIT PEERS ON A TOTAL RETURN1 BASIS, 40.5 % 76.5 % SINCE ALONY HETZ’S 47.6 % 54.4 % INVESTMENT IN AUGUST 2013. 36.0% + = 6.7% + = ANNUALIZED
Slide 13: Portfolio Financial Performance Trends
PORTFOLIO FINANCIAL PERFORMANCE TRENDS NET OPERATING INCOME FUNDS FROM OPERATIONS NAV PER UNIT TRENDING (Actual) (Actual) $160 $100 1.5 $144 $90 $140 1.4 $80 $78 $1.36 NOI in Millions of $ FFO in Millions of $ $120 103% $70 1.3 63% $100 GROWTH $60 GROWTH 24% $48 1.2 GROWTH $50 $80 $71 $40 $1.10 1.1
Slide 14: Development Is Driving Future NOI Growth
DEVELOPMENT AUSTIN $9M DC $25M – $27M AUSTIN DC IS DRIVING BOSTON $81M BOSTON $100M – $110M $23M FUTURE NOI $87M – $91M GROWTH 2021A NOI 2028E NOI $270M – $290M $144M 85% - 100% NOI Growth VA / MD URBAN VA / MD URBAN $31M $58M – $62M 2028E NOI Build-Up1 RECENTLY OPERATING COMPLETED 2021 NOI PORTFOLI
Slide 15: Projected Future FFO Growth
PROJECTED FUTURE FFO GROWTH 2028E FFO 2021A FFO $180M – $200M $78M 130% - 155% FFO Growth 2028E FFO Build-Up IN-PLACE 2021 FFO GROWTH IN FFO $78M $102M-$122M Note: Amounts presented on IFRS basis. 15 // CARR PROPERTIES
Slide 16: Strong Financial Position
STRONG GROSS ASSET VALUE COMPOSITION OF DEBT FINANCIAL DEVELOPMENT PROJECTS SWAPPED $0.5B 17% POSITION DEBT $3.8B GAV FLOATING 46% FIXED 37% LEVERAGE UNSECURED SECURED OPERATING OPERATING PROPERTIES PROPERTIES • Conservative leverage $1.8B $1.5B 2.5% Weighted – 43% debt to total assets1 Average Inte
Slide 17: Strength Through the Pandemic
CHANGE IN OCCUPANCY & LEASED RATES (CARR SHARE) STRENGTH THROUGH THE PANDEMIC 12/2016 12/2017 12/2018 12/2019 12/2020 12/2021 12/2022 FORECAST Weighted Average Lease Term of 7.1 Years Occupancy Leased Rate Rate Only 3.9% of Leases Expire in 2022 LIMITED NEAR-TERM LEASE ROLLOVER1 Less than 3% of Tota
Slide 18: Strategic Roadmap
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Slide 19: Reframing Our Mindset
Activated Rooftop REFRAMING OUR MINDSET In-Building Dining THE WAY THE WORLD WORKS HAS CHANGED AND IS RAPIDLY PAST PRESENT EVOLVING. OUR STRATEGIC FOCUS: • Hospitality Mindset Flexible/ • Focus on Well-Being Alternative • Healthy Buildings Workspaces • Smart Buildings Fitness Center with Natural Lig
Slide 20: Hospitality Focus
HOSPITALITY FOCUS INTERIOR DESIGN DISTINGUISHED HOSPITALITY • Internal Design Resource with • 28 Hours of Dedicated Service & Luxury Hospitality Expertise Culture Training • Hospitality-Focused Interior • Recognition & Sustainment Design Firms Efforts ACTIVATED SPACES FOCUS ON WELL-BEING • Integrate
Slide 21: Healthy Buildings
HEALTHY BUILDINGS RENEWABLE ENERGY CERTIFICATIONS Operate 3 Rooftop Solar PV Installations 82% CERTIFIED 86% CERTIFIED NATURAL HABITATS & BIODIVERSITY 29% CERTIFIED Green Roofs & 79% CERTIFIED Beehives 86% CERTIFIED 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% INDOOR HEALTH ENVIRONMENTAL IMPACT Promo
Slide 22: Smart Buildings
SMART BUILDINGS INDOOR AIR QUALITY TECHNOLOGY HASSEL-FREE ACCESS CONTROL TOUCHLESS VISITOR MANAGEMENT ELEVATOR MOBILE DESTINATION DISPATCH IN-HOUSE DATA ANALYTICS DASHBOARD 22 // CARR PROPERTIES
Slide 23: Development Is Our Competitive Advantage
DEVELOPMENT IS OUR COMPETITIVE ADVANTAGE
Slide 24: Development Capabilities
HIGH-QUALITY PORTFOLIO BUILT BY CARR 55% OF EXISTING PORTFOLIO DEVELOPED IN-HOUSE DEVELOPMENT CAPABILITIES OUR DEVELOPMENT PROFILE 901 K Street 1701 Duke 1700 New York 4500 East-West 2009 Street Ave 2014 • State-of-the-Art Class A Design Projects 2010 2013 • Preeminent Locations with Strong Demand D
Slide 25: The Wilson & The Elm
LANDMARK MIXED-UED DEVELOPMENT RECEIVED 9 THE WILSON & INDUSTRY RECOGNITIONS THE ELM BETHESDA, MD THE WILSON RSF: PROJECT COST: 363,000 $545 Million THE ELM UNITS: TOTAL PROFIT: 456 $161 Million THE WILSON COMPLETION: YIELD ON COST: Q4 2020 6.3% THE ELM REMAINING PROFIT COMPLETION: TO BE RECOGNIZED:
Slide 26: Signal House
D.C.’S FIRST CREATIVE CLASS OFFICE RECEIVED 4 SIGNAL HOUSE INDUSTRY RECOGNITIONS WASHINGTON, D.C. RSF: COST: 227,000 $151 Million COMPLETION: TOTAL PROFIT: Q2 2021 $34 Million UNIQUE AMENITIES: YIELD ON COST: • Recording Studio 7.7% • Karaoke Room • Demonstration REMAINING PROFIT Kitchen TO BE RECOG
Slide 27: One Congress
TALLEST BUILDING IN BOSTON IN 30 YEARS ONE CONGRESS BOSTON, MA RSF: COST: 1,007,000 $977 Million1 COMPLETION: TOTAL PROFIT: Q1 2023 $419 Million1 LUXURY AMENITIES: YIELD ON COST: • Full-Floor Amenity 6.4% Center • 30,000 SF Outdoor REMAINING PROFIT Terrace TO BE RECOGNIZED: • 7,000 SF Fitness Center
Slide 28: Block 16
NEW DEVELOPMENT IN HIGH-GROWTH MARKET BLOCK 16 AUSTIN, TX RSF: ESTIMATED COST: 738,000 $518 Million CONSTRUCTION START: PROJECTED Q1 2023 STABILIZED NOI: $40 Million CONSTRUCTION COMPLETION: Q1 2026 AMENITIES & FEATURES: • 32,000 SF of Outdoor Space • Terraces on All Office Levels + Private Penthous
Slide 29: Delivering Office for the Future
DELIVERING OFFICE FOR THE FUTURE 29 // CARR PROPERTIES
Slide 30: Disclaimer
DISCLAIMER These materials contain certain tables and other financial analyses (the “Illustrative Materials”). Numerous assumptions were used in preparing the Illustrative Materials. As such, neither the Company, its affiliates or subsidiaries nor its representatives makes any representation, warran
Slide 31: CARR
CARR PROPERTIES