Trade Street Residential — Investor Presentation (December 2013)
18 slides from Trade Street Residential's investor presentation, Dec 11, 2013
Slide 1: Trade Street Residential
TRADE STREET RESIDENTIAL
Slide 2: Disclaimer and forward-looking statements
2 This presentation has been prepared by Trade Street Residential, Inc . (“the “Company” or ‘Trade Street”) solely for informational purposes based on its own information, as well as information from public sources . This presentation has been prepared to assist interested parties in making their ow
Slide 3: Overview of Capital Raise
3 Overview of Capital Raise Issuer Trade Street Residential, Inc. / NASDAQ Ticker: TSRE Total Capital Raise $150 million consisting of: » A rights offering of $ 100 million to existing shareholders (the “Rights Offering”) and » A private placement of $ 50 million of common equity to investment entit
Slide 4: Sources and Uses
4 The proceeds of the offering will be used for the following key purposes: Sources and Uses Estimated Sources and Uses ($ in thousands) » Property acquisition pipeline » Repayment of certain indebtedness » General corporate purposes, including future acquisitions (1) Includes anticipated prepayment
Slide 5: Transaction rationale and benefits
5 Allows current common equity holders to participate in the transaction while providing certainty of execution through Senator’s Backstop Commitment » Existing stockholders will receive subscription rights, at no charge, to purchase 1 . 3775 shares, at each holders’ election, of the Company’s commo
Slide 6: Investment Highlights
6 Experienced multifamily management team with extensive market knowledge Differentiated multifamily REIT business model focused on SE mid - sized markets Stable current portfolio performance Strong internal and external growth opportunities Attractive in - place long - term indebtedness with minima
Slide 7: Investment Highlights: management and market focus
7 Experienced multifamily management team with extensive market knowledge » CEO has been active in the development and/or acquisition of over $ 1 billion of residential properties » CIO has overseen the acquisition and management of more than 11 , 600 apartment units » President has significant real
Slide 8: Company History
8 Multifamily Fund Investor Publicly Traded REIT March 2008 Formation of Trade Street Property Fund I, which invests in development, redevelopment and acquisitions of real estate projects in the Southeast July 2003 Formation of BCOM Real Estate Fund, which invests in high quality multifamily residen
Slide 9: Experienced and Proven Leadership
9 Experienced and Proven Leadership • Michael Baumann • Chairman & CEO • 25 years experience » Founder and CEO – Trade Street Residential, Inc . » Active in the development and/or acquisition of over $ 1 billion residential properties » B . A . – University of Miami ; Juris Doctorate – South Texas C
Slide 10: Attractive Multifamily Industry Dynamics
10 0 100 200 300 400 500 600 700 800 Multifamily Permits (in thousands) Several ongoing demographic, fiscal and social trends support a strong multifamily sector, including : » Decrease in home ownership rates » Increase of the Echo Boomer effect » Limited new supply in target markets These favorabl
Slide 11: Portfolio Highlights
11 Talison Row Charleston, SC Estates at Millenia Orlando, FL Creekstone at RTP Durham, NC • Portfolio Highlights Fountains Southend Charlotte, NC Portfolio Highlights
Slide 12: Portfolio Overview
12 Operating Properties Development Sites Operating Assets Development Assets Acquisitions Portfolio Overview Geographic Diversity Location Planned Units Acerage Venetian Fort Myers, FL 436 23.0 Midlothian (MTC East) Midlothian, VA 238 8.4 The Estates at Maitland Maitland, FL 416 6.1 Estate at Mille
Slide 13: Growth strategy and disciplined focus on target markets
13 Maintain disciplined focus on target markets » Disciplined investment focus on mid - sized cities and suburban submarkets of larger cities » Geographies with strong economic and demographic drivers, reduced competition from larger multifamily REITs and limited supply of new housing and apartment
Slide 14: Growing Target Markets
14 Domestic migration trends show Southeastern U . S . states experiencing the most drastic increases over the last ten years, as well as the most recent year - over - year comparison » Majority of our target markets » Plan for continued growth within these markets Positive net migration brings many
Slide 15: Acquisition Pipeline
15 Miller Creek at Germantown Memphis, TN The Avenues at Craig Ranch McKinney, TX Acquisition Pipeline Estates at Wake Forest Wake Forest, NC Acquisition Pipeline Acquisition Pipeline (1) ($ in thousands) (1) No assurance can be given that these transactions will close. Planned acquisitions to be fu
Slide 16: Pro Forma Capital Structure
16 Assets are encumbered with mostly long - term agency or life company debt » Pro forma for this transaction, the average maturity is 9 years with a weighted - average interest rate of 4 . 1 % ( 94 % fixed rate) » Longer term target leverage between 40 - 50 % debt to total undepreciated real estate
Slide 17: Investment Highlights
17 Experienced multifamily management team with extensive market knowledge Differentiated multifamily REIT business model focused on SE mid - sized markets Stable current portfolio performance Strong internal and external growth opportunities Attractive in - place long - term indebtedness with minim
Slide 18: Trade Street Residential
Ae: STREET RESIDENTIAL
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