Crombie Real Estate Investment Trust · TSX:CRR.UN
Crombie Real Estate Investment Trust — Q2 2022 Earnings Presentation
39 slides from Crombie Real Estate Investment Trust's earnings presentation, Aug 16, 2022
Slide 1: Proven Stability and Sustainable Growth
Proven Stability and Sustainable Growth Investor Presentation August 2022
Slide 2: Cautionary statements
Cautionary statements Forward-looking Information: Readers are cautioned that such forward-looking statements are subject to certain risks and uncertainties that could cause actual This presentation contains forward-looking statements that results to differ materially from these statements. Crombie
Slide 3: A leader in Canadian real estate
A leader in Canadian real estate Strong, stable portfolio with opportunity for growth High-quality grocery-anchored, VECTOM2 focused value- Strong financial position with industrial and multi-residential enhancing development access to multiple sources of portfolio driving strong, pipeline capital p
Slide 4: Crombie outperforms the TSX and Real Estate Sector
Crombie outperforms the TSX and Real Estate Sector1 Crombie REIT S&P/TSX Capped REIT Index 600 S&P/TSX Composite Index Crombie REIT CAGR 10.5% 500 Total Return¹ (Indexed) 400 S&P/TSX Capped REIT Index CAGR 7.3% 300 S&P/TSX Composite CAGR 6.1% 200 100 0 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-1
Slide 5: Near-term priorities
Near-term priorities Deliver strong risk-adjusted returns and accelerate NAV and AFFO growth per unit Stable Portfolio Robust Development Strong Financial Pipeline Condition • Elevating portfolio quality and • Focused on high growth mixed- • Disciplined and innovative capital strength use urban and
Slide 6: High-quality, sustainable property portfolio underpins growth platform
High-quality, sustainable property portfolio underpins growth platform Strong, Stable Strategic Partnership Development Strong Financial Highly Skilled Team Portfolio Pipeline Condition and Caring Culture Well-positioned Aligning strategies with Focused on high growth Optimal low-cost capital Attrac
Slide 7: Strong, stable portfolio of high-quality properties
Strong, stable portfolio of high-quality properties Portfolio backed by grocery tenants generates stable cash flow Portfolio Fair Value Gross Leasable Area by Asset Type1 by Market Class >70% Office 2.8% Retail-related industrial of AMR derived from 7.7% Rest of Canada VECTOM tenants engaged in Mixe
Slide 8: Built in organic growth drives value creation
Built in organic growth drives value creation Long-term earnings and cash flow stability Same-asset property cash NOI2 Q2 2022 +1.9% ~0.1% decrease net property Q2 2022 Q2 2021 $67.441M $66.157M income1 for the three months ended Renewal spreads June 30, 2022 is primarily due to increased Q2 2022 te
Slide 9: Strategic partnership with Empire identifying and unlocking future value
Strategic partnership with Empire identifying and unlocking future value Capitalizing on a wide range of strategic transactions with Empire • Developing highly-tailored properties designed 87% 11.9 years to meet Empire’s current and future needs of retail properties weighted average remaining anchor
Slide 10: Balancing defensive grocery-anchored portfolio with offensive development strategy
Balancing investment in a defensive grocery- anchored portfolio with an offensive mixed-used development strategy Montreal and Calgary Customer Fulfillment Centres A prime example of strong relationship with Empire and development expertise • Strategically diversifies asset mix and income stream • I
Slide 11: Voilà hub and spoke concept
Voilà hub and spoke concept Accelerate the build-out of Empire’s online grocery home delivery service There are two types of opportunities for Crombie to participate in spoke locations. Crombie can (i) purchase land and develop a greenfield spoke facility; or (ii) repurpose existing space within our
Slide 12: Development pipeline drives future value creation
Development pipeline drives future value creation Creating our vision of how people want to live, work, shop, and play Primarily mixed-use, high density developments in urban centers Major development pipeline 72% located in VECTOM 1 Pipeline properties with zoning 21% approval 1 1 10 5 5 Pipeline p
Slide 13: Unlocking value with strong development pipeline
Unlocking value with strong development pipeline 29 development pipeline projects 6 459,000 sq.ft commercial GLA 310,000 sq.ft retail-related 5 115,000 sq.ft commercial GLA 300,000 sq.ft retail-related 24 988,000 sq.ft commercial GLA 8,827,000 sq.ft residential GLA completed near-term2,3 medium proj
Slide 14: Development pipeline completions drive value creation
Development pipeline completions drive value creation 2020 2021 2022 Q1 2020 Belmont Market Q3 2020 Avalon Mall Phase I Q1 2022 Q4 2020 Bronte Village Avalon Mall Phase II Q1 2021 Davie Street Residential Q2 2020 Davie Street Retail Q4 2020 Q3 2022 Montreal CFC Calgary CFC Q3 2021 Le Duke 14
Slide 15: Substantially completed major developments
Substantially completed major developments Substantial Estimated Total Commercial Retail-related Residential Residential Property CMA Ownership Completion Project Cost GLA industrial GLA GLA Units Date ($ in millions) Belmont Market1,2 Victoria 100% Q1 2020 160,000 - - $93.0 Davie Street – Retail1 V
Slide 16: Near-term major development pipeline
Near-term major development pipeline Focus on mixed-use developments in Canada's top urban and suburban markets Retail-related Property CMA Commercial GLA Residential GLA Residential Units industrial GLA Voilà CFC 3 (Calgary)1 Calgary - 300,000 - - Westhill on Duke Halifax - - 188,000 290 1780 East
Slide 17: Major development pipeline
Major development pipeline # Property CMA Site Size Project Timing (acres) 1 Voilà CFC 31 Calgary 25 Near-term 2 Westhill on Duke Halifax 1 Near-term Total of 29 major 3 Belmont Market - Phase II Victoria 2 Near-term 4 Opal Ridge – Penhorn2 Halifax 26 Near-term developments, incl. 8 5 Broadway & Com
Slide 18: Distinct opportunities for value creation
Distinct opportunities for value creation Significant entitlement of development lands accelerates growth Completion of Park West, Halifax, Rendering development projects increases fair value, NAV and AFFO growth Developments increase urban concentration and diversification Lynn Valley, Vancouver, R
Slide 19: Building financial strength
Building financial strength Interest coverage1,2 $ 2.2B $ 444M BBB (low) Fair value of 3.26x Available stable unencumbered liquidity Debt to Adjusted DBRS rating provides assets EBITDA1,2 access to attractive unsecured debt financing As at June 30, 2022 8.73x Debt to Gross Book Value Optimal Low-Cos
Slide 20: Financial strength and flexibility
Financial strength and flexibility Strategically deploying capital to build long-term value for our stakeholders As at June 30, 2022 Q2’22 2021 2020 2019 2018 Available Liquidity (millions) $444 $508 $472 $449 $312 Recycling of capital Unencumbered Assets $2.2 $1.8 $1.4 $1.2 $1.0 provides organic eq
Slide 21: Access to ample liquidity
Access to ample liquidity1 Balance as at Authorized Available Facility Maturity Date June 30, 2022 Amounts Liquidity Revolving Credit Facility $6M $400M $394M June 30, 20252 Bilateral Credit Facility $80M $130M $50M June 28, 2024 Subtotal $86M $530M $444M3 Bronte Village Joint Venture4 $105M $112M $
Slide 22: Innovative capital funding
Innovative capital funding Strategic capital management priorities • Maintain multiple sources of both debt and equity financing • De-risk by pre-funding capital commitments • Utilize sources of capital with the most efficient cost of capital • At June 30, 2022, Crombie had three assets classified a
Slide 23: Well-Laddered Debt Maturity Profile
Well-Laddered Debt Maturity Profile Extending Weighted Average Term to Maturity Increasing allocation to unsecured debt, allowing $700 for additional future 5.0% Millions financing flexibility 4.5% $600 4.0% $500 3.5% 3.0% $400 2.5% $300 2.0% $200 1.5% 1.0% $100 0.5% $0 0.0% 2022 2023 2024 2025 2026
Slide 24: Environmental, social, and governance (ESG) considerations
Environmental, social, and governance (ESG) considerations 1 Environment Social Governance 1 • Sustainable construction • Talent attraction, • Board composition and and design development, and governance retention • Greenhouse gas • Risk management emissions • Diversity, equity, and inclusion • Heal
Slide 25: 2021 sustainability highlights
2021 sustainability highlights 29 electric vehicle $14.9M invested in ~2M square feet of charging stations1 at LED upgrades at 154 portfolio BOMA BEST properties across the properties since 2020 1 certified country Environmental 54% of senior 26% of hires in the 66% of internal leadership under the
Slide 26: 2022 sustainability update
2022 sustainability update Continuing to build the Crombie of tomorrow • Published second annual sustainability report • Completed second submission to GRESB • Avalon Mall achieved BOMA Best Gold certification and 2022 BOMA Newfoundland Earth Award and Certificate of Excellence in Retail • Implement
Slide 27: Crombie's sustainable path forward
Crombie’s sustainable path forward Key initiatives: Collecting, monitoring, and tracking against our sustainability data using Measurabl Assessing and incorporating recommendations for climate-related financial disclosure from the Task Force on Climate-Related Financial Disclosures (TCFD) Continue t
Slide 28: Q2 2022 financial highlights
Q2 2022 financial highlights Stable, predictable results demonstrate consistency and reliability of grocery-anchored, industrial and multi-residential portfolio Property revenue Q2 2022 Increase in property revenue driven by $103.064M • Increased rental revenue from acquisitions and strong occupancy
Slide 29: Long-term value creation
Long-term value creation Strong, stable portfolio with opportunity for growth Value-enhancing Strategic partnership Strong financial major development with Empire position pipeline Grow grocery-anchored Collaboration with Empire Ample cost-effective capital, retail & advance drives operational stabi
Slide 30: Appendix
Appendix Investor Presentation
Slide 31: Crombie-at-a-glance
Crombie-at-a-glance Portfolio Overview1 Portfolio Fair Value by Market Class3 Investment Properties – Fair Value $5.3B Investment Properties including JVs Rest of Canada – Fair Value $5.7B 28.6% VECTOM Gross Leasable Area 18,500,000 sq.ft $5.7B 46.7% Committed Occupancy 96.3% YTD Same-Asset Cash NOI
Slide 32: Featured major developments
Featured major developments Meaningful value creation arising from development projects in VECTOM and Major Markets Bronte Village Le Duke Voilà CFC 3 Oakville (Toronto), ON Montreal, QC Calgary, Alberta 32 Opal Ridge Westhill on Duke Dartmouth, NS Halifax, NS
Slide 33: Featured properties Bronte Village
Featured properties Bronte Village is a luxury rental opportunity in a vibrant, unique and highly sought after community. This 50% joint venture development includes 481 units of refined rental living and a 30,000 sq.ft Farm Boy, which opened in June 2021. Substantial completion was reached in the f
Slide 34: Featured properties Le Duke
Featured properties Reaching substantial completion in the third quarter of 2021, Le Duke is nestled between the blossoming Griffintown neighborhood and the charming Old Port of Montreal with the recently completed Bonaventure Expressway sitting just outside. In partnership with Prince Developments,
Slide 35: Featured properties Voilà CFC 3
Featured properties The Calgary Voilà CFC will be the third Empire grocery e-commerce fulfillment hub in Canada. Powered by Ocado plc’s leading technology, this will further enrich Crombie’s footprint in VECTOM and continue to enhance Crombie’s portfolio. Crombie acquired the 25-acre site in June 20
Slide 36: Featured properties Opal Ridge
Featured properties Along with joint venture partner, Clayton Developments, Crombie has proposed enabling the transformation of this 26-acre site into approximately 900 residential units. Opal Ridge is proposed as a welcoming, inclusive, accessible, and naturally beautiful multi-residential communit
Slide 37: Featured properties Westhill on Duke
Featured properties Westhill on Duke is a planned 290-unit residential rental project in the heart of downtown Halifax, located within the Scotia Square mixed-use retail, office, and hotel complex. The site is entitled and a development application has been submitted. The project is expected to be r
Slide 38: Calculation of non-GAAP measures
Calculation of non-GAAP measures1 shown in thousands of Canadian dollars, except per unit amounts and as otherwise noted Debt to Trailing 12 Months Adjusted EBITDA 2022 20212,3 20202,3 2019 2018 Debt $ 2,497,663 $ 2,509,626 $ 2,641,817 $ 2,317,265 $ 2,488,665 Adjusted EBITDA 286,024 280,057 256,689
Slide 39: Investor relations contacts
Clinton Keay, CFO and Secretary [email protected] (902) 755-8100 Ruth Martin, Director, Investor Relations and Financial Analysis [email protected] (902) 759-0164 crombie.ca
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