Trade Street Residential — Investor Presentation (November 2013)
20 slides from Trade Street Residential's investor presentation, Nov 13, 2013
Slide 1: Schedule 14A Proxy Statement - Trade Street Residential, Inc.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 14A Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant x Filed by a Party other than the Registrant ¨ Check the appropriate box: ¨ Preliminary Proxy
Slide 2: Form, Schedule or Registration Statement No.; Filing Party; Date Filed
(2) Form, Schedule or Registration Statement No.: (3) Filing Party: (4) Date Filed:
Slide 3: Trade Street Residential November 2013
TRADE STREET November RESIDENTIAL 2013
Slide 4: Forward-Looking Statements
Forward presentation Certain are This “would,” forward-looking structures; common of attract industry assumptions condition, our communication (“Senator”). should documents The Company Company’s Section also state. and entirety statement, Additionally, www.tradestreetresidential.com. stockholders re
Slide 5: Offering Overview
Overview Trade Issuer Total $150 A Subscription Existing transferrable Common $6.33 Backstop Management Michael Use Committed Repayment General The Timing the 3TRADE RESIDENTIAL rights private fourth Rights Backstop ofmillion Capital per Street Proceeds corporate offering Baumann STREET stockholders
Slide 6: Sources and Uses
Sources The Committed Repayment General Estimated Rights Private Net Payoff Paydown Cash Remaining Proceeds (1) 4TRADE RESIDENTIAL Includes Proceeds proceeds offering for Offering variable Placement corporate and STREET pipeline used identified Sources for property of anticipated Uses 147,500 of exp
Slide 7: Transaction Rationale
Transaction Allows Existing Certain Proceeds The Significantly On Debt Minimal Creating Improves Places (1) 5TRADE RESIDENTIAL As aCompany pro will of capital current members STREET stockholders anear-term forma September from be coverage strong Rationale comprised improves on intends rights common
Slide 8: Investment Highlights
Investment Experienced extensive underwriting Disciplined knowledge Attractive expertise management with indebtedness Strong maturity near-term and Stable opportunities growth REIT multifamily Differentiated performance portfolio model on 6TRADE RESIDENTIAL SE risk external minimal business mid-size
Slide 9: Company Overview
Company Experienced CEO CIO President Significant Disciplined Focus Geographic Markets Stable 17 95.5% Financed Strong Three We (1) 7TRADE RESIDENTIAL properties Figures believe has has acquisitions on portfolio average acquisition tend overseen STREET been acquiring, with has Overview relationships
Slide 10: Company History
Company Multifamily March Publicly May Completion July 2003-2011 Formation June Reverse November 2012-2013 Announcement 8TRADE RESIDENTIAL 2003 2013 2012 2008 merger Traded STREET History of 2013 of Fund Trade BCOM $63.5mm of and REIT Investor $100.0 Street asset RealInitial contribution million Pro
Slide 11: Experienced Management Team
Experienced Over Michael 25 Founder B.A. David Chairman President Vice Former Richard 30 CFO Certified Ryan 10 CIO Active B.S. Heather 20 Operations Director, VP Experience 9TRADE RESIDENTIAL years of–Chairman –100 Hanks Operations Levin Trade Liberty University in Trade Branch Managing Straub Ross
Slide 12: Attractive Multifamily Industry Dynamics
Attractive Several support Decrease Increase These led vacancy Ability Limited 01Multifamily 100 200 300 400 500 600 700 800 2008 2004 2000 1996 1988 1984 Demand Homeownership Home 2012 2007 1997 1992 1987 60.0 62.0 64.0 66.0 68.0 70.0 Echo U.S. Population Source: 2010 2006 2002 1998 1994 1990 1986
Slide 13: Portfolio Highlights
Portfolioat Estates Orlando, Fountains Charlotte, Talison Charleston, Creekstone Durham, TRADE 11 RESIDENTIAL Row STREET FL NC Highlights Millenia Southend NC at SCRTP
Slide 14: Portfolio Summary
Portfolio Effective Physical Monthly Average Occupancy Rent Sandy Arbors $696 494 Memphis, $1,038 191 Augusta, Lakeshore $925 93.9% 240 $872 123 Chattanooga, Post $788 172 Louisville, $718 96.4% 126 Raleigh, Mercé $744 91.8% 255 Addison, Park $769 97.8% 114 Plano, Terrace $802 97.2% 286 San Estates
Slide 15: Go-Forward Business Strategy
Go-Forward Disciplined Geographies supply Hands-on Internally Tight Allocate Increase Focus Target Exit Recycle Selectively In-house JV Maintain Create TRADE 13 RESIDENTIAL development non-strategic cost on acquisition aofproceeds collection scale STREET capital oversight adisciplined portfolio new
Slide 16: Growing Domestic Migration to Target Markets
Growing Domestic Majority Plan Positive Larger Diversification Institutional Focus Recent Newly Established Non-service Attractive F 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Arizona Texas Nevada Net -T 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 North Florida South Colorad
Slide 17: Acquisition Pipeline
Acquisition Committed Year Location Property Anticipated Purchase Units Closing 330 Q4 37,250,000 288 Q1 42,375,000 334 $2013 952 Total Miller Memphis, The McKinney, Estates Wake Acquiring Note: TRADE 15 RESIDENTIAL 43,750,000 123,375,000 2013 2014 Avenues Estates Built No Forest, Creek atDate STREE
Slide 18: Pro Forma Capital Structure
Assets Longer Minimal ($ Adj. PF Operations Discontinued All Pro BMO Mortgage 221,044 -M (20,568) 20,568 $8,838 Total Net 50.7% 51.0% Principal 45.7% 48.4% Q4 5.5% 6.7% 0.5% 0.2% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 87.0% 90.0% 100.0% Maintain Thereafter 2017 2016 2015 2014 (1) (2) c
Slide 19: Investment Highlights
Investment Experienced Disciplined Attractive Strong Stable Differentiated TRADE 17 RESIDENTIAL current internal STREET in-place Highlights underwriting multifamily portfolio multifamily and long-term external performance management and REIT growth indebtedness riskbusiness management opportunities
Slide 20: Trade Street Residential
TRADE STREET RESIDENTIAL
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