Crombie Real Estate Investment Trust · TSX:CRR.UN
Crombie Real Estate Investment Trust — Q3 2020 Earnings Presentation
24 slides from Crombie Real Estate Investment Trust's earnings presentation, Nov 13, 2020
Slide 1: Delivering Value
Delivering Value Q3 2020 Results Conference Call NOVEMBER 13, 2020 Davie Street Vancouver, BC
Slide 2: Forward-looking Information
Forward-looking Information This presentation contains forward-looking statements that reflect the current expectations of management of Crombie about Crombie's future results, performance, achievements, prospects and opportunities. Wherever possible, words such as "continue", "may", "will", "estima
Slide 3: Opening Remarks
Opening Remarks Don Clow President & CEO
Slide 4: Stability & Growth
Stability & Growth Focused Strategy Execution ▪ Strengthened Financial Condition ▪ Ample Liquidity ▪ Increased weighted average term to maturity ▪ Strong Fundamentals ▪ Stable occupancy 95.3% ▪ Renewal growth +4.0% ▪ Optimized Empire Relationship ▪ Sustainable competitive advantage ▪ ~13 year weight
Slide 5: Accelerate NAV & AFFO Growth per Unit
Accelerate NAV & AFFO Growth per Unit Crombie’s long-term strategy is to deliver strong risk adjusted returns by effectively allocating capital within our grocery and pharmacy-anchored real estate portfolio, to accelerate NAV and AFFO growth per unit. Aligning Modernizations strategies and FreshCo c
Slide 6: Development & Operational Highlights
Development & Operational Highlights Glenn Hynes EVP & COO
Slide 7: Well Positioned with Defensive Portfolio
Well Positioned with Defensive Portfolio Largest Tenants Investment Grade Grocery & pharmacy-anchored 247,000 SF 75% retail is robust & Grocery & Pharmacy- defensive NEW LEASES Avg Anchored Properties Tenant $20.68 % of AMR PSF Remaining DBRS Lease Term Rating (yrs) Empire Company 54.3% 13 BBB (low)
Slide 8: Well Positioned with Defensive Portfolio: Rent Collection
Well Positioned with Defensive Portfolio 96% Rent Collection for October % of October‘20 % of Gross Rent, Total Gross Rent Collected Portfolio Retail & Commercial 95% 91% Retail-Related 100% 3% Industrial Office 100% 6% Subtotal 96% 100% Balance of Gross Rent Deferrals (including CVSB) 0% 115,000 SF
Slide 9: Strong Fundamentals
Strong Fundamentals Solid Occupancy Drives Performance 142,000 SF New Leases Committed Occupancy $17.32 PSF Q3'20 95.3% 105,000 SF 2019 96.1% 2018 96.0% Committed $23.81 PSF 2017 95.2% 2016 94.4% 558,000 SF Renewals +4.0% growth 9
Slide 10: Material NAV Creation
Material NAV Creation $612M Investment in First Major Developments Davie Belmont Street Bronte Avalon Village Mall Create $1-2 NAV/Unit1 Pointe- Le Duke Claire $150 - $300 million 1Assumes NAV creation equals difference between Crombie’s current estimated stabilized value based on current market cap
Slide 11: Davie Street, Vancouver, BC
Davie Street, Vancouver, BC Creating Significant Unitholder Value Pre-leasing underway on the 330 residential rental units ¹At Crombie’s share, Crombie will own 100% of the retail and 50% of the residential 11
Slide 12: Belmont Market, Langford, (Victoria), BC
Belmont Market, Langford, (Victoria), BC Upgrading by Developing A+ Real Estate $93M Premier retail destination = 160k sf of grocery, restaurants, & complementary retail & office Recently reached substantial completion with remaining three buildings to be completed in 2021 subject to pre-leasing 12
Slide 13: Avalon Mall, St. John's, NL
Avalon Mall, St. John’s, NL Dominant Regional Shopping Centre Development space 90% leased Expansion grand opening Spring 2021 13
Slide 14: Le Duke, Montreal, QC
Le Duke, Montreal, QC Placemaking along the Bonaventure Greenway $118M mixed-use tower ($59M¹ Crombie share) = 387 residential rental units + urban format IGA + ancillary retail ¹At Crombie’s share, this project is being developed at a 50% JV interest 14
Slide 15: Montreal CFC, Pointe-Claire, QC
Montreal CFC¹, Pointe-Claire, QC Empire’s State-of-the-art grocery e-commerce CFC Future home of Voilà par IGA e-commerce hub serving major cities in Quebec and the Ottawa area ¹CFC = Customer Fulfillment Centre 15
Slide 16: Bronte Village, Oakville, ON
Bronte Village, Oakville, ON Building Community in the GTA $277M mixed-use development ($139M¹ Sobeys store Crombie share) = ~480 closed on October luxury residential rental 21 for Farm Boy units + Sobeys + conversion ancillary retail ¹At Crombie’s share, this project is being developed at a 50% JV
Slide 17: Potential Major Developments
Potential Major Developments Unlocking & Realizing Significant Value 17
Slide 18: Financial Highlights
Financial Highlights Clinton Keay CFO & Secretary
Slide 19: Rent Collection
Rent Collection Impact of Bad Debt Expense1 Nine Months Ended % of Total Tenant September 30, 2020 Billings (In thousands od CAD dollars) Total Tenant Billings $308,296 100.0% Less: Amounts Received & Deferrals Repaid to Date (284,219) (92.2%) Less: CECRA Collections (7,958) (2.6%) Balance Outstandi
Slide 20: Q3'20 Financial Highlights
Q3’20 Financial Highlights1 Impact of COVID-19 FFO/AFFO per Unit $0.29 $0.27 $0.24 $0.22 Normalizing for impact of COVID-19 operating results were strong and on par with Q3’19 FFO/Unit AFFO/Unit Q3'19 Q3'20 +3.6% excluding COVID-19 impacts SANOI Growth +2.2% excluding FFO/AFFO Payout Ratio COVID-19
Slide 21: Well-Laddered Debt Maturity Profile
Well-Laddered Debt Maturity Profile1 Extending Weighted Average Term to Maturity Increasing allocation to ~$34M of maturing debt unsecured debt, in 2020 with weighted allowing for average interest rate of $700 2.9% additional future 6.0% financing flexibility Millions $600 5.0% $500 4.0% $400 3.0% $
Slide 22: Building Financial Strength
Building Financial Strength Ample Liquidity $1.5B BBB Low $473M 9.34x Debt to 3.03x Interest Unencumbered (Stable) by Liquidity1 EBITDA Coverage Assets DBRS Debt to Gross Book Value (Fair Value) Fixed Rate Mortgages, 25.5% Equity, 49.7% 51.0% 50.3% 50.3% Total 49.8% Capitalization $4.8B 48.9% Senior
Slide 23: Closing Remarks
Closing Remarks Don Clow President & CEO
Slide 24: Delivering Value
Delivering Value
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