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CREATIVITY & CONNECTIVITY June 2019
2
This presentation may contain “forward looking” information about
future events or Allied’s future performance. This information, by its
nature, is subject to risks and uncertainties that may cause actual
events or results to differ materially, including those described
under the heading “Risks and Uncertainties” in our most recently
filed AIF. Material assumptions that underpin any forward-looking
statements we make include those described under “Forward
Looking Disclaimer” in our MD&A for the first quarter of 2019.
TABLE OF CONTENTS
Investment Highlights . . . . . . . . . . . . . . . . . . . . 4
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Rental Portfolio . . . . . . . . . . . . . . . . . . . . . . . . .22
Development Portfolio . . . . . . . . . . . . . . . . . . .38
Development Completions . . . . . . . . . . . . . . .48
Risk Management . . . . . . . . . . . . . . . . . . . . . . .53
Corporate Social Responsibility . . . . . . . . . . .58
Appendix Definitions . . . . . . . . . . . . . . . . . . . . 61
4
INVESTMENT HIGHLIGHTS
– At the forefront of urban intensification in Canada’s major cities
– Fully internalized and entrepreneurial management team
– Strong growth platform
– Strong financial foundation
– 29% compound annual growth rate on total assets
– 17% average annual total return
5
PORTFOLIO GROWTH - TOTAL ASSETS (M)
Values up to December 31st, 2009 are based on financial reporting prepared in accordance with previous Canadian GAAP standards. Values after that date are reported in accordance with International Financial Reporting Standards (IFRS). As at period ending March 31, 2019.
28.9%CAGR
120M
6.9B
IPO
Q1 2019
6
Source: Bloomberg as of May 1, 2019
RETURNS TO UNITHOLDERSTOTAL RETURN INDEX
17%AVERAGE ANNUAL TOTAL RETURN
Strategy
8
CONSOLIDATION OF URBAN OFFICE PROPERTIES
– Close to core
– Distinctive
– Lower occupancy costs
9
500-522 King West Toronto
10
Le Nordelec Montréal
11
The Chambers Ottawa
12
35-39 Front Street East Toronto
13
14
15
16
17
INTENSIFICATION OF URBAN OFFICE PROPERTIES
– Underutilized land
– Additional rentable area with low land cost
– Value creation
18
Intensification of QRC WestToronto
19
Intensification of QRC WestToronto
20
Intensification of The Breithaupt Block Kitchener
21
King Portland CentreToronto
Rental Portfolio
23
179
11.4M
As of March 31, 2019.
PROPERTIES
SQUARE FEET
RENTAL PORTFOLIO
24
SP
AD
INA
AV
E.
QUEEN ST. W.
KING ST. W.
WELLINGTON ST. W.
FRONT ST. W.
RICHMOND ST. W.
ADELAIDE ST. W.
DUNDAS ST. W.
COLLEGE ST.
UN
IVE
RS
ITY
AV
E.
BA
Y S
T.
CH
UR
CH
ST
.
JAR
VIS
ST
.
ST
RA
CH
AN
AV
E.
DU
FFE
RIN
ST
.
SH
ER
BO
UR
NE
ST
.
RICHMOND ST. E.
PA
RLI
AM
EN
T S
T.
GARDINER EXPRESSWAY
LAKESHORE BLVD W.
QUEEN’S QUAY WEST
KING ST. E.
ANCILLARY PARKING
REIT
YO
NG
E S
T.
JOINT VENTURE
BA
TH
UR
ST
ST
.
N
QueenRichmond
St.LawrenceMarket
CentralBusinessDistrict Entertainment
District King & Spadina
King West
TORONTO PORTFOLIO
25
1 . 141 Bathurst
2 . 159-161 Bathurst
3 . 183 Bathurst
4 . 241 Spadina
5 . 379 Adelaide W
6 . 383 Adelaide W
7 . 387 Adelaide W
8 . 420 Wellington W
9 . 425 Adelaide W
10 . 425-439 King W
11 . 441-443 King W
12 . 445-455 King W
13 . 460 King W
14 . 461 King W
15 . 468 King W
16 . 469 King W
17 . 478 King W
18 . 485 King W
19 . 500 King W
20 . 522 King W
21 . 544 King W
22 . 552-560 King W
23 . 555 Richmond W
24 . 579 Richmond W
25 . 589-591 Richmond W
26 . 662 King W
27 . 668 King W
28 . 80-82 Spadina
29 . 96 Spadina
30 . King Portland Centre
- 602-606 King W
- 642 King W
- 499 Adelaide W
- 501-505 Adelaide W
31 . The Well
32 . KING Toronto
KING & SPADINA
Toronto
24
8
3
1
2 25
26
1713
2119
3232
32 32 1822
675
29
28
10
9
15
4
23
30
31
31
3131
3131 31
3216
12 11
14
31
N
27
20
30
26
RU
E D
’IBE
RV
ILLE
AV
E. D
E L
OR
IMIE
R
AV
E. C
HR
IST
OP
HE
-CO
LOM
B
AV
E. P
AP
NIE
AU
RU
E S
T-D
EN
IS
BO
UL.
ST
-LA
UR
EN
T
AV
E. D
U P
AR
C
AVE. VAN HORNE
RUE JEAN-TALON O.
RUE RACHEL E
AUTOROUTE VILLE-MARIEBOUL. RENÉ-LÉVESQUE E.
AVE. ST-JOSEPH E.
RUE BEAUBIEN E.
RUE SHERBROOKE
RU
E P
EE
L
AVE. DES PINSR
UE
UN
IVE
RS
ITY
AVE. ATW
ATER
RUE ST.PATRICKRUE CENTRE
RUE WELLINGTON
PONT VICTORIA
Central Business District
Mile End
Gri ntown
Old Montréal
9
8
4
5
18
14 12
15
13
2
1
7
3
10
611
17
N
16
MONTRÉAL PORTFOLIO
1 . 3510 Saint-Laurent
2 . 3575 Saint-Laurent
3 . 400 Atlantic
4 . 4446 Saint-Laurent
5 . 451-481 Saint-Catherine
6 . 480 Saint-Laurent
7 . 5445 de Gaspé
8 . 5455 de Gaspé
9 . 5505 Saint-Laurent
10 . 6300 Parc
11 . 645 Wellington
12 . 740 Saint-Maurice
13 . 8 Place du Commerce
14 . 85 Saint-Paul
15 . Cité Multimédia
- 111 Duke
- 50 Queen
- 700 Wellington
- 75 Queen
- 80 Queen
- 87 Prince
16 . El Pro Lofts - 644
Courcelle
17 . Le Nordelec
- 1301-1303 Montmo-
rency
- 1655 Richardson
- 1751 Richardson
- 1700 Saint-Patrick
18 . 425 Viger
27
CITÉ MULTIMÉDIA, MONTRÉAL $21,115 $380,400 5.21% Desjardins, Morgan Stanley, SAP Canada
QRC WEST, TORONTO 12,047 261,950 4.25% eOne, Sapient Canada
LE NORDELEC, MONTRÉAL 11,216 225,700 5.76% Gsoft, Yellow Pages Media, Unity Technologies
5455 DE GASPÉ, MONTRÉAL 8,199 132,060 5.50% Attraction Media, Framestore, Ubisoft
555 RICHMOND W, TORONTO 7,493 144,680 4.75% Good Life, Sentinelle, Synaptive
THE CHAMBERS, OTTAWA 6,168 139,290 — National Capital Commission
VINTAGE I & II, CALGARY 5,801 75,480 5.75% Royal & Sun Alliance
THE TANNERY, KITCHENER 5,250 96,330 5.48% Communitech Corp., Desire 2 Learn
5445 DE GASPÉ, MONTRÉAL 5,157 93,120 5.75% Sun Life, Ubisoft
QRC EAST, TORONTO 4,669 109,770 4.50% Publicis, Veritprop Limited, St. Joseph Media Inc.
TOTAL $87,145 $1,658,780 5.14%
URBAN WORKSPACE TOP-TEN PROPERTIES
NORMALIZED LQA NOI
APPRAISED FAIR VALUE CAP RATE PRINCIPAL USERSPROPERTY NAME
28
NETWORK-DENSE URBAN DATA CENTRES
NORMALIZED LQA NOI
APPRAISED FAIR VALUE CAP RATE PRINCIPAL USERSPROPERTY NAME
151 FRONT W, TORONTO $32,810 $504,820 5.50% Bell, Telus, Rogers, Zayo, TorIX, Equinix, Cologix
250 FRONT W, TORONTO 13,640 304,360 6.25% Cloud Service Provider, AWS
905 KING W, TORONTO 4,321 90,090 6.25% Cloud Service Provider, Beanfield, Cologix
TOTAL $50,771 $899,270 5.83%
29
CONNECTIVITY
Source: PeeringDB.com
30
INTERNET TRAFFIC ON TORIX
Source: TorIX Website
31
NOI BY SEGMENT
For the period ending March 31, 2019.See definition appendix for definition of NOI.
18.7%URBAN DATA CENTRES
12.0%CALGARY, EDMONTON AND VANCOUVER
18.7%URBAN DATA CENTRES
7.2%RETAIL
5.0%PARKING
69.1%OFFICE
24.0%MONTRÉAL AND OTTAWA
NOI BY USE
45.3%TORONTO AND KITCHENER
32
LEASE MATURITIES
As of March 31, 2019.This slide contains forward looking information.
33
LEASE MATURITIES - MONTRÉAL AND OTTAWA
As of March 31, 2019.This slide contains forward looking information.
34
As of March 31, 2019.This slide contains forward looking information.
LEASE MATURITIES - TORONTO AND KITCHENER
35
As of March 31, 2019.This slide contains forward looking information.
LEASE MATURITIES - CALGARY, EDMONTON AND VANCOUVER
36
As of March 31, 2019.This slide contains forward looking information.
LEASE MATURITIES - URBAN DATA CENTRES
37
49%
20.6%2003
Q1 2019
TOP-TEN USERS
USER % RENTAL REVENUE (Q1 2019)SECTOR
CLOUD SERVICE PROVIDER Data Centre/IT 3.6%
COLOGIX Data Centre/IT 2.9%
UBISOFT Gaming/IT 2.9%
EQUINIX Data Centre/IT 2.4%
NATIONAL CAPITAL COMMISSION, A CANADIAN CROWN CORPORATION Government 1.9%
SHOPIFY INC. Commerce/IT 1.8%
MORGAN STANLEY Financial 1.5%
ENTERTAINMENT ONE Media/Entertainment 1.3%
BELL CANADA Telecommunications 1.2%
IBM CANADA Data Centre/IT 1.1%
20.6%
Development Portfolio
39
DEVELOPMENT PIPELINE
*Co-ownership
** Allied is currently providing financing on this Westbank development. Subject to placement of permanent financing, Allied intends to acquire a 50% undivided interest based on total development cost.
Estimated NOI is based on stabilized occupancy.
2021
COLLEGE & MANNING* 27,000 $1.1M
ADELAIDE & DUNCAN* 216,000 $9.9M
BREITHAUPT, PHASE III* 147,000 $5.4M
400 WEST GEORGIA** 177,000 $9.0M
THE LOUGHEED 88,000 TBD
655,000 $25.4M+
UnscheduledUNION CENTRE 1,129,000
KING & PETER 790,000
LE NORDELEC 230,000
ADELAIDE & SPADINA 245,000
2,394,000
2022 2023
THE WELL* 746,000 $ 4 0. 1 M
KING & BRANT 130,000 T B D
QRC WEST, PHASE II 90,000 TBD
KING TORONTO* 100,000 $ 5 . 5 M
966,000 $40.1M+
GLA
GLA GLA
ESTIMATED
ESTIMATED ESTIMATED
NOI
NOI NOI2020
GLA
ESTIMATED
NOI
425 VIGER 315,000 $6.5M
TELUS SKY* 218,000 $8.0M
533,000 $14.5M
GLA
ESTIMATED
40
425 VigerMontréal
41
TELUS SkyCalgary
42
Adelaide & Duncan Toronto
43
Breithaupt IIIKitchener
44
400 West GeorgiaVancouver
45
The WellToronto
46
King & BrantToronto
47
KING TorontoToronto
Development Completions
49
QRC WEST, TORONTO
This was a pioneering, large-scale intensification project that involved the integratation of two restored heritage
buildings with a new, mid-rise office structure. The project commenced in 2010 and was completed in 2015. It is
comprised of 345,274 square feet of GLA and is fully leased.
The fair value is provided by our external appraiser, which is calculated based on the discounted cash flow model.
DEVELOPMENT ECONOMICS INVESTMENT
STABILIZED NOI
UNLEVERED YIELD ON COST FAIR VALUE
VALUE CREATION
VALUE CREATION AS %
OF COST
LAND COSTS $11,000
HARD & SOFT COSTS 104,000
CAPITALIZED INTEREST &
OPERATING COSTS 15,000
TOTAL DEVELOPMENT COSTS $130,000 $12,047 9.3% $261,950 $131,950 101.5%
50
THE BREITHAUPT BLOCK, KITCHENER
Allied acquired an undivided 50% interest in the property in 2010 and immediately put it into development,
completing the first phase in 2014 and the second phase in mid-2016. The property is an equal two-way joint
arrangement between Allied and Perimeter Development Corporation. It is comprised of 226,398 square feet of
GLA (Allied's share 113,199 square feet) and is fully leased.
The fair value is provided by our external appraiser, which is calculated based on the discounted cash flow model.
DEVELOPMENT ECONOMICS INVESTMENT
STABILIZED NOI
UNLEVERED YIELD ON COST FAIR VALUE
VALUE CREATION
VALUE CREATION AS %
OF COST
LAND COSTS $4,000
HARD & SOFT COSTS 18,470
CAPITALIZED INTEREST &
OPERATING COSTS 2,550
TOTAL DEVELOPMENT COSTS $25,020 $1,950 7.8% $45,160 $20,140 80.5%
51
180 JOHN STREET, TORONTO
Allied acquired the property in 2015. The property was redeveloped and leased in its entirety to Spaces. The project
was completed in 2017. It is comprised of 45,631 square feet of GLA and is fully leased.
The fair value is provided by our external appraiser, which is calculated based on the discounted cash flow model.
DEVELOPMENT ECONOMICS INVESTMENT
STABILIZED NOI
UNLEVERED YIELD ON COST FAIR VALUE
VALUE CREATION
VALUE CREATION AS %
OF COST
LAND COSTS $8,700
HARD & SOFT COSTS 17,500
CAPITALIZED INTEREST &
OPERATING COSTS 1,300
TOTAL DEVELOPMENT COSTS $27,500 $1,600 5.8% $31,600 $4,100 14.9%
52
189 JOSEPH, KITCHENER
189 Joseph was purchased as part of The Tannery in 2012. The building stood vacant, and was slated to be
demolished before Allied proposed the redevelopment and secured Deloitte as the user. The project commenced in
late-2015 and was completed mid-2017. It is comprised of 26,462 square feet of GLA and is fully leased.
The fair value is provided by our external appraiser, which is calculated based on the discounted cash flow model.
DEVELOPMENT ECONOMICS INVESTMENT
STABILIZED NOI
UNLEVERED YIELD ON COST FAIR VALUE
VALUE CREATION
VALUE CREATION AS %
OF COST
LAND COSTS $230
HARD & SOFT COSTS 10,890
CAPITALIZED INTEREST &
OPERATING COSTS 240
TOTAL DEVELOPMENT COSTS $11,360 $720 6.3% $13,240 $1,880 16.5%
Risk Management
54
– 15% limitation on development– Pre-leasing– Partial monetization– Financial management– Collaboration
DEVELOPMENT
55
BALANCE SHEET
– Low leverage– Long-term, fixed-rate debt– Net debt to EBITDA ratio of 6.2x– Debt ratio 27.0%– Interest coverage ratio of 3.3x
Debt in “debt ratio” refers to total debt. See definition appendix for definition of total debt and EBITDA.
56
DEBT MATURITY CHART
This chart summarizes the principal payments in regards to Allied's various obligations as at March 31, 2019.
57
UNENCUMBERED ASSETS
Corporate Social Responsibility
59
CORPORATE SOCIAL RESPONSIBILITY
CURRENT Sustainability + Occupant Engagement Program
Benchmarking of Portfolio-wideEnergy & Water Usage
CSR Report + GRESB Reporting +Aligning with ESG Indices
Waste to be added in 2019
2018 2020
“The cities we build have to be sustainable and conducive to human wellness, diversity and creativity. Put differently, they have to elevate and inspire the humanity in all of us.” - MICHAEL EMORY
60
CORPORATE SOCIAL RESPONSIBILITY
Appendix Definitions
62
CERTAIN DEFINITIONS AND NON-IFRS MEASURESCertain defined terms used in this investor presentation have the following meaning:
“EBITDA”
EBITDA is a non-IFRS financial measure and should not be considered as an alternative to net income or net income and
comprehensive income, cash flow from operating activities or any other measure prescribed under IFRS. EBITDA does not have
any standardized meaning prescribed by IFRS. As computed by us, EBITDA may differ from similar computations reported by
other Canadian real estate investment trusts and, accordingly, may not be comparable to similar computations reported by such
organizations. Management considers EBITDA to be a useful measure for the purpose of evaluating debt levels and interest coverage.
For a full explanation of EBITDA and a reconciliation to IFRS please see Allied REIT Q1 2019 MD&A “Other Financial Performance
Measures”.
“INTEREST”
Interest is defined as interest expense and other financing costs including capitalized interest.
“NOI”
NOI is a non-IFRS financial measure and should not be considered as an alternative to net income or net income and comprehensive
income, cash flow from operating activities or any other measure prescribed under IFRS. NOI does not have any standardized meaning
prescribed by IFRS. As computed by us, NOI may differ from similar computations reported by other Canadian real estate investment
trusts and, accordingly, may not be comparable to similar computations reported by such organizations. Management considers NOI to
be a useful measure of performance for rental properties. For a full explanation of NOI and a reconciliation to IFRS please see Allied REIT
Q1 2019 MD&A “Net Operating Income (“NOI”).
63
“TOTAL DEBT”
Total debt is a non-IFRS financial measure and does not have any standard meaning prescribed by IFRS. As computed by us, total
debt may differ from similar computations reported by other Canadian real estate investment trusts and, accordingly, may not be
comparable to similar computations Reported by such organizations. Management considers total debt to be a useful measure for
evaluating debt levels and interest coverage. For a full explanation of total debt and an illustration of the calculation of total debt,
please see Allied REIT Q1 2019 MD&A “debt”.
“TOTAL RETURN”
Total return is based on $100 in units invested on February 6th, 2003 and ending on May 1, 2019, assuming the re-investment of all cash
distributions of the trust on the day of the distribution.
ALLIED PROPERTIES REIT134 PETER STREET, SUITE 1700 TORONTO, ONTARIO M5V 2H2 T 416.977.9002 F 416.306.8704 alliedreit.com