RFA Financial Inc. · TSX:RFA
RFA Financial — Artis Real Estate Investment Trust — Q2 2022 Earnings Presentation
27 slides from RFA Financial's earnings presentation, Aug 4, 2022
Slide 1: Q2-22 Investor Presentation
Q2-22 INVESTOR PRESENTATION
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Statements in this presentation are made as at August 4 2022, or such other date set forth in the statement. All references to dollars ($) in this presentation refer to Canadian dollars, unless otherwise specified. Certain statements contained in this presentation are “for
Slide 3: Investment highlights
• New vision and strategy focused on value investing in real estate to create and unlock value for Artis’ owners • Diversified REIT with attractive industrial portfolio, representing nearly 50% of the REIT’s gross leasable area • Active normal course issuer bid program • Conservative funds from oper
Slide 4: Q2-22 Investor Presentation
Q2-22 INVESTOR PRESENTATION
Slide 5: Significant opportunities for value enhancement; focus on growth in NAV
Artis has significant opportunities for value enhancement and will focus on growth in NAV per unit and distributions • Artis trades at a significant discount to its $19.37 NAV per unit at June 30, 2022 • It is widely known that diversified REITs are out of favour and real estate generally trades at
Slide 6: Vision: best-in-class asset management and investment platform
To build a best-in-class asset management and investment platform focused on growing NAV per unit and distributions for our investors through value investing in real estate Q2-22 INVESTOR PRESENTATION
Slide 7: Value unlocked through asset monetization
• Successfully began unlocking value through the monetization of assets. The REIT has completed a total of 46 dispositions since March, 2021; • Proceeds from dispositions have been effectively utilized to reduce outstanding debt. Total debt to GBV has reduced significantly from 49.3% to 46.0%; • At
Slide 8: Focus on investor-centric KPIs
A focus on investor-centric KPIs in order to maximize long-term value • Net Asset Value Per Unit • Adjusted Funds From Operations Per Unit • Distribution Per Unit • Adjusted Funds From Operations Payout Ratio • Total Debt to Gross Book Value Q2-22 INVESTOR PRESENTATION
Slide 9: Making ESG a focal point
Making ESG a focal point and establishing an ESG- minded culture • Improving operating efficiencies by establishing sustainability targets (using Greenhouse Gas Protocols) with respect to achieving reductions in carbon pollution, energy consumption, water consumption and waste; • Aligning a portion
Slide 10: Q2-22 Investor Presentation
Q2-22 INVESTOR PRESENTATION
Slide 11: Portfolio overview
0.3M sq. ft. 1.9M sq. ft. 0.6M sq. ft. 3.7M sq. ft. Number of Leased Gross Book Major Markets Square Feet of Properties Value Gross Leasable Area 5.8M sq. ft. 0.1M sq. ft. 0 0.5M sq. ft. 1.8M sq. ft. 1.8M sq. ft. • Primarily Industrial and Office properties 1.1M sq. ft. located in Canada and the U.S
Slide 12: Portfolio by geography and asset type
Canada 42.9% US 62.2% Canada 37.8% US 57.1% Retail Retail 12.1% 21.2% Industrial 31.9% Industrial Office 49.2% 38.7% Office 46.9% Q2-22 INVESTOR PRESENTATION
Slide 13: Portfolio by asset class metrics
32% 75 8.7M 95.0% 5.5% $1.6B 47% 44 6.8M 88.3% 6.6% $2.0B 21% 33 2.1M 91.4% 6.5% $0.7B 209of Number 22.8 Square feet of 91.9% Leased Weighted- Gross Book $5.0B Properties GLA Average Cap Value Rate (1) Office GBV includes $0.2B related to a residential asset. Total GBV includes $0.7B of Corporate As
Slide 14: Lease renewals and expiries
60.0% 50.0% 48.5% 40.0% 30.0% 20.0% 13.0% 12.3% 9.1% 10.0% 7.5% 0.0% 2022 2023 2024 2025 2026+ Industrial Office Retail 388,424 square feet of lease renewals commenced in Q2-2022 at a weighted-average increase in rental rates of 3.7% Q2-22 INVESTOR PRESENTATION
Slide 15: Top tenants
2.9% 1.9% 7.7 2.3% 0.7% 7.3 2.3% 1.5% 0.7 2.1% 1.2% 4.5 2.0% 2.2% 12.3 1.6% 1.0% 5.7 1.5% 1.3% 14.1 1.3% 0.6% 4.5 1.2% 3.0% 9.4 1.2% 0.6% 6.5 16.3% of Total of Gross 9.6%Leasable Weighted-Average 8.4 Gross Revenue Area Lease Term in Years Q2-22 INVESTOR PRESENTATION
Slide 16: Q2-22 Investor Presentation
Q2-22 INVESTOR PRESENTATION
Slide 17: Park 8Ninety V, Greater Houston
• Three best-in-class industrial buildings totalling 675,000 square feet of leasable area • Fifth and final phase of a multi-phase development project that is expected to total 1.8 million square feet of industrial real estate upon completion • 28’ to 36’ clear height ceilings • 52’ wide column spac
Slide 18: Winnipeg mixed-use development
• Institutional-quality 40-storey amenity-rich residential/multi- family and commercial development • Located near the corner of Portage Avenue and Main Street, connected to a number of Artis owned assets that span an entire city block, including the 360 Main office tower, the new retail development
Slide 19: Greater Phoenix industrial development
• Three state-of-the-art Class A industrial buildings totalling approximately 561,000 square feet of leasbale area • 37 acre parcel of land • Located along the South Loop 202 Freeway with 202 Freeway and Germann Road frontage and adjacent to Park Lucero, a multi-phase industrial development owned by
Slide 20: Twin Cities industrial development
• Industrial development project with prominent frontage at the intersection of I-35W and 85th Ave N. • Three new generation industrial buildings expected to comprise three buildings totaling approximately 317,400 square feet of leasable area • Construction of Phase I, one building totaling 118,500
Slide 21: Q2-22 Investor Presentation
Q2-22 INVESTOR PRESENTATION
Slide 22: Debt maturities
$1,400,000 $1,200,000 $250,000 $199,401 3.43% $342,000 3.75% $1,000,000 $454,925 3.68% $485,974 3.75% $250,000 3.82% $800,000 $49,978 3.60% $485,974 $600,000 $79,886 3.68% 200,000 5.60% $110,957 2.96% $400,000 $342,000 $76,777 2.82% $454,925 $200,000 $200,000 $199,401 3.47% $79,886 $110,957 $76,777
Slide 23: Total capitalization
Mortgages 21.1% Unitholders' Equity $ % 52.6% $1.0 billion 21.1% $0.5 billion 9.3% Senior Unsecured $0.8 billion 17.0% Debentures 9.3% $2.6 billion 52.6% Credit Facilities 17.0% Total Capitalization 4,841,561 Q2-22 INVESTOR PRESENTATION
Slide 24: Liquidity and leverage metrics
20.5% 46.0% $2.0B $272.1M $79.8M 3.35x 8.9x Q2-22 INVESTOR PRESENTATION
Slide 25: Q2-22 Investor Presentation
Q2-22 INVESTOR PRESENTATION
Slide 26: Vision and strategic priorities
To build a best-in-class asset management and investment platform focused on growing NAV per unit and distributions for our investors through value investing in real estate by: investor returns through the balance sheet and liquidity position distributions and unit price performance , and top talent
Slide 27: Contact
Samir Manji President & Chief Executive Officer [email protected] Jaclyn Koenig Chief Financial Officer [email protected] Heather Nikkel Vice-President, Investor Relations & Sustainability [email protected] www.artisreit.com
Artis Real Estate Investment Trust — Q2 2022 Earnings Presentation on 6ix