RFA Financial Inc. · TSX:RFA
RFA Financial — Artis Real Estate Investment Trust — Q1 2013 Earnings Presentation
20 slides from RFA Financial's earnings presentation, June 2013
Slide 1: Properties of Success – Q1-13 Investor Presentation
PROPERTIES OF SUCCESS Q1-13 INVESTOR PRESENTATION
Slide 2: Unique Four Part Strategy
UNIQUEFOUR UNIQUE FOURPART PARTSTRATEGY STRATEGY 1. Geographic focus: Canada and select U.S. markets, with a major concentration in western Canada 2. Product focus: commercial real estate only ° Industrial ° Office ° Retail Stampede Station - Calgary, AB Two MarketPointe - Minneapolis, MN, USA 3. Ex
Slide 3: Portfolio Overview
PORTFOLIO OVERVIEW CURRENT STATUS Properties (1) 229 Size (1) 24.5 Million Sq. Ft. GBV (2) $4.9 Billion Overall Occupied & Committed (3) 96.9% (1) Portfolio Assets as at March 31, 2013, adjusted for acquisitions announced or completed at May 8, 2013. (2) Gross Book Value (“GBV”) as at March 31, 2013
Slide 4: Portfolio Summary: NOI by Asset Class and Geography
PORTFOLIO SUMMARY Property NOI Property NOI By By Asset Class (1) Geographical Industrial Location (1) 24% AB 39% ON 13% Retail 24% USA 20% MB 13% BC SK Office 9% 6% 52% (1) Property Net Operating Income (“NOI”) as at March 31, 2013, adjusted for acquisitions announced or completed at May 8, 2013. 4
Slide 5: Diversification by Tenant GLA
DIVERSIFICATIONBY DIVERSIFICATION BYTENANT TENANTGLA GLA 61% of Tenants are Government or National (1) 5% 56% 39% Top 10 Tenants 11.4% of Gross Revenue (1) 7.7 Years Weighted-Average Lease Term (1) (1) Portfolio tenant roster as at March 31, 2013, adjusted for acquisitions announced or completed at
Slide 6: Lease Expiration Schedule
LEASEEXPIRATION LEASE SCHEDULE(1)(1) EXPIRATIONSCHEDULE 80% of 2013 and 23% of 2014 expiries have been dealt with Weighted-average rental increase on renewals in Q1 2013 was 6.9% Q1-13 Same Property NOI growth was 2.4% over Q1-12 20.0% 18.0% 16.0% 14.0% 12.0% 11.8% 11.2% 10.9% 12.0% 10.5% 10.0% 8.0%
Slide 7: Schedule of Upcoming Mortgages Maturing
SCHEDULE OF SCHEDULE OF MORTGAGES UPCOMING MORTGAGES (2) MATURING MATURING 600.0 $512.9 Mortgage Profile (1) 500.0 Total Debt to GBV – 50.2% Mortgage Debt to GBV – 46.1% $386.1 Interest Coverage Ratio – 2.83 times 400.0 Weighted-average term – 4.4 yrs Weighted-average interest rate – 4.31% $268.3 30
Slide 8: Leverage Profile
Leverage Profile Leverage profile for the fiscal quarter ending: March 31, 2012 June 30, 2012 September 30, 2012 December 31, 2012 March 31, 2013 Debt: GBV 53.8% 54.5% 52.4% 51.5% 50.2 % Debt excl. convertible debentures: GBV 47.6% 49.2% 48.0% 47.3% 46.1% Net debt: EV 48.5% 52.7% 49.8% 52.3% 49.8% U
Slide 9: DBRS Investment Grade Rating
DBRS INVESTMENT SCHEDULE MATURING (2) GRADE RATING OF MORTGAGES DBRS highlighted Artis' strengths as being a reasonably scaled REIT with a mid-size portfolio that continues to improve in quality with new property additions; as well as having a well-diversified portfolio by asset type and geography;
Slide 10: Selected Financial Information
SELECTED 2012 FINANCIAL YEAR-TO-DATE INFORMATION INFORMATION Q2-12 Revenues Property NOI ($millions) ($millions) $108.8 $71.5 $82.1 $52.8 Q1-12 Q1-13 Q1-12 Q1-13 Consolidated Assets $4,381.9 ($millions) $3,167.6 $2,211.6 2010 2011 2012 10
Slide 11: Selected Financial Information: FFO and AFFO per Unit
SELECTED FINANCIAL INFORMATION FFO/unit AFFO/unit (Diluted) (Diluted) $0.38 $0.33 $0.31 $0.28 Q1-12 Q1-13 Q1-12 Q1-13 23% increase in FFO/unit 18% increase in AFFO/unit year over year year over year FFO pay-out ratio – 71% AFFO pay-out ratio – 82% 11
Slide 12: Internal Growth Strategy
INTERNALGROWTH INTERNAL GROWTHSTRATEGY STRATEGY Increase Rental Income with Lease Turnover Home Depot - Minneapolis, MN, USA Concorde Corporate Centre – GTA, ON Exploit Development Opportunities Centrepoint - Winnipeg, MB North City Office –Edmonton, AB - Built 2010 12
Slide 13: External Growth Strategy
EXTERNALGROWTH EXTERNAL GROWTHSTRATEGY STRATEGY MAX at Kierland - Scottsdale, AZ, USA Acquired on May 25, 2012 Two MarketPointe - Minneapolis, MN, USA Stampede Station - Calgary, AB Acquired on December 22, 2011 Acquired on July 26, 2011 13
Slide 14: External Growth Strategy: 1700 Broadway and ASM America Building
EXTERNALGROWTH EXTERNAL GROWTHSTRATEGY SRATEGY STRATEGY 1700 Broadway Denver, CO Acquisition closed on May 22, 2013 Mortgage Information Purchase Capitalization GLA Amount Interest Term Price Rate SQFT ($m) Rate (years) ($m) 197,076(1) US$49.0 7.25% US$24.5 3.11% 10 Occupancy Key Tenants 95.0% Whiti
Slide 15: External Growth Strategy: Quarry Park and 220 Portage Avenue
EXTERNALGROWTH EXTERNAL GROWTHSTRATEGY SRATEGY STRATEGY Quarry Park Portfolio Calgary, AB Acquisition closed on May 15, 2013 Mortgage Information Purchase Capitalization GLA Amount Interest Term Price Rate SQFT ($m) Rate (years) ($m) 282,327 $154.9 5.9% $81.4 3.54% 8 Occupancy Key Tenants 100.0% Alb
Slide 16: Disciplined U.S. Portfolio Strategy
DISCIPLINED ARTIS U.S. PORTFOLIO REIT PROGRESS STRATEGY HIGHLIGHTS “ A Window of Opportunity ... Closing Soon?... Maybe Not” Total weighting of U.S. properties in Artis’ portfolio will be limited to no more than 30% of NOI. This limit was recently increased from 20% of NOI for the following reasons:
Slide 17: Artis REIT Progress Highlights
ARTIS REIT PROGRESS HIGHLIGHTS December 31, December 31, December 31, 2010 2011 2012 Properties 133 163 220 GLA (SQFT) 12.6M 17.0M 23.4M GBV (1) $2.2B $3.2B $4.4B FFOPU (2) $1.20 $1.21 $1.30 Closing Unit Price $13.21 $13.99 $15.64 Market Cap $1.0B $1.2B $1.8B Enterprise Value $2.3B $3.0B $4.2B * Gre
Slide 18: Artis REIT Progress Highlights: Unit Price and Consensus
ARTISREIT ARTIS REITPROGRESS PROGRESSHIGHLIGHTS HIGHLIGHTS June 7, 2013 Unit Price $15.57 2013 2013 2014 2014 Consensus NAV $17.10 Consensus(1) FFO AFFO FFO AFFO Consensus Target Price $18.00 Per Unit $1.43 $1.22 $1.47 $1.26 Implied Cap Rate 6.6% Pay-Out Ratio 75.6% 88.8% 73.7% 85.8% Distribution Pe
Slide 19: Senior Management Team
SENIORMANAGEMENT SENIOR MANAGEMENTTEAM TEAM Armin Martens Jim Green Kirsty Stevens President and Chief Chief Financial Officer Chief Administrative Executive Officer Officer Dennis Wong Douglas McGregor Dave Johnson Frank Sherlock Senior Vice President Senior Vice President Senior Vice President Sen
Slide 20: Diversification, Value Creation, Growth
DIVERSIFICATION VALUE CREATION GROWTH 20
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