Rfa Financial Inc. · TSX:RFA
Rfa Financial — Artis Real Estate Investment Trust — Q3 2008 Earnings Presentation
32 slides from Rfa Financial's earnings presentation, Nov 17, 2008
Slide 1: Properties of Success
PROPERTIES OF SUCCESS NOV 17, 2008 Q3 – 2008 INSTITUTIONAL INVESTOR PRESENTATION
Slide 2: Forward-Looking Disclaimer
__________________ __________________ __________________ __________________ FORWARD-LOOKING DISCLAIMER __________________ __________________ __________________ Certain information included in this presentation contains forward-looking statements within the __________________ meaning of applicable se
Slide 3: Notice Respecting Non-GAAP Measures
__________________ __________________ __________________ __________________ NOTICE RESPECTING NON-GAAP MEASURES __________________ __________________ Distributable Income (“DI"), Property Net Operating Income (“Property NOI”) and Funds from Operations __________________ (“FFO”) are non-GAAP measures
Slide 4: Unique Four Part Strategy
__________________ __________________ __________________ __________________ UNIQUE FOUR PART STRATEGY __________________ __________________ __________________ __________________ 1. Geographic focus: Western Canada only __________________ __________________ __________________ 2. Product focus: Commer
Slide 5: Property Distribution
__________________ __________________ __________________ __________________ PROPERTY DISTRIBUTION __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ ____________
Slide 6: Portfolio Overview
__________________ __________________ __________________ __________________ PORTFOLIO OVERVIEW __________________ __________________ __________________ Properties 88 __________________ __________________ Size 6.5 M sq.ft. __________________ __________________ __________________ Gross Book Value $1.3
Slide 7: Portfolio Summary by Province
__________________ __________________ __________________ __________________ PORTFOLIO SUMMARY __________________ __________________ Property GLA Property NOI __________________ __________________ __________________ by Province by Province __________________ __________________ __________________ Brit
Slide 8: Portfolio Summary by Asset Class
__________________ __________________ __________________ __________________ PORTFOLIO SUMMARY __________________ __________________ Property GLA Property NOI __________________ __________________ by Asset Class by Asset Class __________________ __________________ __________________ _________________
Slide 9: Robust Western Economy
__________________ __________________ __________________ __________________ ROBUST WESTERN ECONOMY __________________ __________________ __________________ __________________ Real GDP Growth Rate Average Retail Sales Growth __________________ 2007 Year Over Year, 2003-2007 __________________ _______
Slide 10: Robust Western Economy: Provincial Unemployment Rates
__________________ __________________ __________________ __________________ ROBUST WESTERN ECONOMY __________________ __________________ __________________ Provincial Unemployment Rates Sept - 2008 __________________ __________________ 13.3% __________________ __________________ 11.4% ______________
Slide 11: Robust Western Economy
__________________ __________________ __________________ __________________ ROBUST WESTERN ECONOMY __________________ __________________ Real GDP Growth – Statistics Canada, RBC Economics Research (Oct, 2008) __________________ __________________ __________________ Cda BC Alta Sask Man Ont Que NB NS
Slide 12: Portfolio Overview: 10 Largest Tenants
__________________ __________________ __________________ __________________ PORTFOLIO OVERVIEW __________________ __________________ 10 Largest Tenants by Gross Revenue __________________ __________________ __________________ __________________ __________________ __________________ _________________
Slide 13: Portfolio Overview: Government Tenants
__________________ __________________ __________________ __________________ PORTFOLIO OVERVIEW __________________ __________________ Government Tenants __________________ __________________ __________________ __________________ Approximately 3.3% of Gross __________________ Revenue from Federal Gove
Slide 14: Portfolio Overview: Diversification by Tenant Size
__________________ __________________ __________________ __________________ PORTFOLIO OVERVIEW __________________ __________________ Diversification by Tenant Size (GLA) __________________ __________________ __________________ Regional & Local __________________ 36.0% __________________ National ___
Slide 15: Portfolio Overview: GLA and Gross Book Value Growth
__________________ __________________ __________________ __________________ PORTFOLIO OVERVIEW __________________ __________________ __________________ GLA Gross Book Value __________________ __________________ 6.5 M sq.ft. $1.36 B __________________ __________________ (M sf) ($M) __________________
Slide 16: Quarterly Growth
__________________ __________________ __________________ __________________ QUARTERLY GROWTH __________________ __________________ __________________ Property NOI __________________ $72.3 ($M) $67.5 __________________ __________________ __________________ __________________ __________________ $34.3
Slide 17: Quarterly Growth: FFO
__________________ __________________ __________________ __________________ QUARTERLY GROWTH __________________ __________________ __________________ __________________ FFO ($M) $1.23 __________________ __________________ 45 $1.41 /unit __________________ 40 /unit Q3-08 FFO/unit = __________________
Slide 18: Financial Results
__________________ __________________ __________________ __________________ FINANCIAL RESULTS __________________ ($000’s, except unit and __________________ per unit amounts) __________________ Nine month period ended September 30 __________________ __________________ 2007 2008 __________________ __
Slide 19: Schedule of Mortgages Maturing
__________________ __________________ __________________ __________________ PORTFOLIO OVERVIEW __________________ __________________ Schedule of Mortgages Maturing (2) __________________ __________________ ($M) __________________ $ 10 2 . 3 $ 114 . 8 __________________ $82.2 Mortgage to Gross Book _
Slide 20: Mortgage Profile
__________________ __________________ __________________ __________________ PORTFOLIO OVERVIEW __________________ __________________ __________________ __________________ MORTGAGE PROFILE __________________ __________________ __________________ Weighted Average Term of __________________ 5.27 Years
Slide 21: Lease Expiration Schedule
__________________ __________________ __________________ __________________ PORTFOLIO OVERVIEW __________________ __________________ Lease Expiration Schedule __________________ __________________ 43.5% __________________ __________________ Expiries in All Provinces (% of Total Portfolio) __________
Slide 22: Internal Growth
__________________ __________________ __________________ __________________ INTERNAL GROWTH __________________ __________________ Year over Year Occupancy (1) __________________ Portfolio Occupancy Same Property Occupancy (2) __________________ __________________ Q3-07 97.1% 97.1% __________________
Slide 23: Internal Growth: Absorption and Leasing Performance
__________________ __________________ __________________ __________________ INTERNAL GROWTH __________________ __________________ __________________ __________________ Absorption and Leasing Performance (1) __________________ __________________ __________________ __________________ GLA Net Rent GLA
Slide 24: Latest Analyst Projections
__________________ __________________ __________________ __________________ LATEST ANALYST PROJECTIONS (1) __________________ __________________ 2008 2009 Current Current __________________ __________________ Latest analyst Target __________________ projections (Q3-08 FFO AFFO FFO AFFO NAV results)
Slide 25: Peer Comparisons
__________________ __________________ __________________ __________________ PEER COMPARISONS __________________ __________________ __________________ 2008E 2009E __________________ __________________ Daily market updates (BMO FFO AFFO FFO AFFO (11/28/08), Canaccord FFO AFFO __________________ (11/28
Slide 26: Growth Strategy - External
__________________ __________________ __________________ __________________ GROWTH STRATEGY - EXTERNAL __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ Willing
Slide 27: Growth Strategy Internal: Development Pipeline
__________________ __________________ __________________ __________________ GROWTH STRATEGY INTERNAL – DEVELOPMENT PIPELINE __________________ __________________ 1 Millennium Centre – Red Deer __________________ __________________ - 40,000 s.f. 2 storey expansion __________________ _________________
Slide 28: Growth Strategy - Internal
__________________ __________________ __________________ __________________ GROWTH STRATEGY - INTERNAL __________________ __________________ __________________ __________________ 4 TransAlta Place – Calgary __________________ __________________ -Potential for 250,000 s.f. expansion _________________
Slide 29: Growth Strategy - Internal
__________________ __________________ __________________ __________________ GROWTH STRATEGY - INTERNAL __________________ __________________ Increase Rental Income __________________ with Lease Turnover Nurture Existing Relationships __________________ __________________ __________________ _________
Slide 30: Senior Management Team
__________________ __________________ __________________ __________________ SENIOR MANAGEMENT TEAM __________________ __________________ Armin Martens, P.Eng., M.B.A. __________________ President, Chief Executive Officer and Trustee __________________ Mr. Martens has been actively involved in the co
Slide 31: Investment Highlights
__________________ __________________ __________________ __________________ INVESTMENT HIGHLIGHTS __________________ __________________ __________________ • Artis REIT has an exclusively Western Canadian Focus __________________ __________________ • High Quality Commercial Properties – all Asset Cla
Slide 32: Properties of Success
__________________ PROPERTIES OF SUCCESS __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ __________________ ____________
Artis Real Estate Investment Trust — Q3 2008 Earnings Presentation on 6ix