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Investor Presentation June 2014
Based on First Quarter 2014
2
Forward Looking Statements
Certain statements contained in this document constitute forward-looking information within the meaning of securities laws.
Forward-looking information may relate to the Choice Properties REIT’s (the “Trust”) future outlook and anticipated events or
results and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs,
capital expenditures, financial results, taxes, plans and objectives of or involving the Trust. Particularly, statements regarding
future results, performance, achievements, prospects or opportunities for the Trust or the real estate industry are forward-
looking statements. In some cases, forward-looking information can be identified by such terms such as ‘‘may’’, ‘‘might’’, ‘‘will’’,
‘‘could’’, ‘‘should’’, ‘‘would’’, ‘‘occur’’, ‘‘expect’’, ‘‘plan’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘intend’’, ‘‘estimate’’, ‘‘predict’’, ‘‘potential’’,
‘‘continue’’, ‘‘likely’’, ‘‘schedule’’, or the negative thereof or other similar expressions concerning matters that are not historical
facts. The Trust has based these forward-looking statements on factors and assumptions about future events and financial
trends that it believes may affect its financial condition, results of operations, business strategy and financial needs, including
that the Canadian economy will remain stable over the next 12 months, that inflation will remain relatively low, that interest
rates will remain stable, that tax laws remain unchanged, that conditions within the real estate market, including competition for
acquisitions, will be consistent with the current climate, that the Canadian capital markets will provide the Trust with access to
equity and/or debt at reasonable rates when required and that Loblaw will continue its involvement with the Trust. Although the
forward-looking statements contained in this document are based upon assumptions that management of the Trust believes
are reasonable based on information currently available to management, there can be no assurance that actual results will be
consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks
and uncertainties, many of which are beyond the Trust’s control, that may cause the Trust’s or the industry’s actual results,
performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied
by such forward-looking statements. These risks and uncertainties include, among other things, the factors discussed under
‘‘Enterprise Risks and Risk Management’’ section the Trust’s 2014 First Quarter Report to Unitholders. The forward-looking
statements made in this report relate only to events or information as of the date on which the statements are made in this
document. Except as required by law, the Trust undertakes no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or otherwise, after the date on which the statements are
made or to reflect the occurrence of unanticipated events.
Our History – A Solid Pedigree in Retail Real Estate
Canada’s Largest
Retailer
>2,300 stores
~65 million sq. ft.
Growth Oriented
Public Real Estate
Entity
456 Properties
37.6 million sq. ft.
3
The Launch of Choice Properties REIT
$460M
in Equity
$600M
in Public
Debentures
>$7B
Value
4
Our Portfolio1 – Geographically Diverse
444
Retail Properties
1
Office
9
Warehouses
37.6
million sq. ft.
456 Properties
Note 1 - Reflect acquisitions completed post-IPO Note 2 – As of March 31, 2014
180 ONTARIO RETAIL
47 ALBERTA
RETAIL
37
25
102 QUEBEC RETAIL 19
11 11
9
3
SASKATCHEWAN RETAIL
MANITOBA RETAIL
PRINCE EDWARD ISLAND RETAIL
NEWFOUNDLAND & LABRADOR RETAIL
NOVA SCOTIA RETAIL
BRITISH COLUMBIA
RETAIL
SURREY, BC WAREHOUSE 1
CALGARY, AB WAREHOUSE 1
REGINA, SK WAREHOUSE 1
ONTARIO WAREHOUSE +
INDUSTRIAL
2
BRAMPTON, ON OFFICE 1 NEW BRUNSWICK
WAREHOUSE 3 LAVAL, QC
WAREHOUSE 1
ST. JOHN’S, NL WAREHOUSE 1
NEW BRUNSWICK RETAIL
1
Industrial
SURREY, BC LAND
1
Land
5
97.7% Occupied2
Highlights
1. Loblaw – principal tenant and non-discretionary food store anchor
2. Strategic pipeline for long-term value creation
3. Solid capital structure with strong balance sheet and investment grade ratings
4. Sound growth strategy to enhance portfolio and provide stable, predictable and growing monthly distributions
5. Experienced internal management team with proven track record of owning, managing and developing retail real estate
6
7
Loblaw Companies Limited
Principal tenant
10 – 18 year initial lease terms
88% of GLA
90% of base rent
Strong balance sheet and long history of investment grade credit ratings
Rated “BBB” by DBRS and S&P
Recently completed acquisition of Canada’s largest pharmacy retailer, Shoppers Drug Mart
Mutually beneficial business relationship
Strategic Alliance Agreement
Strong Banner Recognition Across Canada
8
Rights of First Offer (ROFO)
Choice has ROFO to purchase from Loblaw
Loblaw has ROFO to purchase from Choice
Future SC development
Choice has right to participate in future Loblaw SC development and redevelopment
Site Intensification
Choice has right to intensify properties; upon substantial completion Loblaw receives payment from Choice
Supermarket Properties
Choice has right to purchase properties including supermarket properties from vendors other than Loblaw
Loblaw has right of first offer to lease from Choice when supermarket use become available
9
Strategic Alliance Agreement
Highlights
1. Loblaw – principal tenant and non-discretionary food store anchor
2. Strategic pipeline for long-term value creation
3. Solid capital structure with strong balance sheet and investment grade ratings
4. Sound growth strategy to enhance portfolio and provide stable, predictable and growing monthly distributions
5. Experienced internal management team with proven track record of owning, managing and developing retail real estate
10
11
Well positioned to deliver growth and build value
with strategic pipeline of opportunities
10.0
3.5
1.0
4.5
Dedicated acquisition pipeline from
Loblaw’s remaining portfolio of
approximately 10 million sq. ft.
3.5 million sq. ft. of at grade
development from properties with
existing excess density – target to
develop approximately 1.0 sq. ft. in the
next five years
4.5 M sq. ft. of ancillary GLA presents
opportunity to enhance portfolio value
through renewed focus on leasing /
merchandising, operations and capital
improvements Lo
bla
w P
ort
folio
Inte
nsi
fica
tio
n
An
cilla
ry G
LA
Highlights
1. Loblaw – principal tenant and non-discretionary food store anchor
2. Strategic pipeline for long-term value creation
3. Solid capital structure with strong balance sheet and investment grade ratings
4. Sound growth strategy to enhance portfolio and provide stable, predictable and growing monthly distributions
5. Experienced internal management team with proven track record of owning, managing and developing retail real estate
12
13
Capital Structure
($000’s)
Unaudited
As at March 31, 2014
Transferor Notes $1,500,000
Debentures $1,050,000
Class C LP Units $925,000
Total Debt & Class C LP Units $3,475,000
Equity $3,976,998
Enterprise Value $7,451,998
Debt & Class C LP Units to TEV 47%
Unit price: $10.69
87,954,951 Trust Units
and 284,074,754 Class B
LP Units O/S 1
Subsequent to quarter
end, Loblaw successfully
executed a secondary sale
of the remaining $1.5B of
Choice Properties’
Transferor Notes through 2
separate transactions
Today, Choice Properties
has $2.55B of publically
held debt
1. Loblaw held 21,500,000 Trust Units and all of the Class B LP units. George Weston held 20,428,035 Trust Units
“BBB” Investment Grade Rating
S&P and DBRS
14
Well distributed debt maturity profile with no more than
$450M maturing in one year
Weighted average term to maturity of 6.1 years 1,2
100% unsecured
Minimal refinancing risk (no maturities until April 2016)
$500 million unsecured revolving credit facility provides
liquidity and financial flexibility
1. Public debentures only (excluding Class C Redemption Dates)
2. Class C LP units are redeemable at Loblaw’s option beginning in 2027. REIT has the option to settle in cash or Class B LP units or any
combination thereof
300
200 200
300
200
300
400
250
200 200
300 300 325
-
100
200
300
400
500
600
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Pri
nc
ipa
l ($
M)
Debt Maturity Schedule
LP Public Maturities REIT Public Maturities Class C Redemption Dates
Debt Profile
Choice Properties has plenty of headroom in each of its financial covenants
A summary of the financial covenants for Choice Properties’ public debentures is shown below:
15
Debt Covenants
1. Includes Class C LP Units
Test Incurrence /
Maintenance
Unsecured
Debentures
Q1 2014
Result
Leverage Test 1 Cons. Indebtedness to Aggregate Assets
Incurrence <= 65% 47%
Debt Service Coverage Test 1 Consolidated EBITDA to Debt Service
Maintenance >= 1.5x 3.5x
Unencumbered Asset Value Test Unencumbered Assets to Unsecured Indebtedness
Maintenance >= 1.5x 2.9x
Secured Indebtedness Test Cons. Secured Indebtedness to Aggregate Assets
Incurrence <= 40% 0%
Highlights
1. Loblaw – principal tenant and non-discretionary food store anchor
2. Strategic pipeline for long-term value creation
3. Solid capital structure with strong balance sheet and investment grade ratings
4. Sound growth strategy to enhance portfolio and provide stable, predictable and growing monthly distributions
5. Experienced internal management team with proven track record of owning, managing and developing retail real estate
16
17
Our Objectives
Provide unitholders with stable, predictable and growing monthly cash
distributions
Enhance value of property portfolio to maximize unitholder value
Expand asset base while increasing AFFO per unit through accretive
acquisitions and site intensification
18
Our Growth Strategy
Intensification potential
~3.5M sq. ft. of at-grade GLA
expansion potential, ~1.0M sq.
ft. slated for development
within 5 years
New development opportunities
In partnership with Loblaw or proven third-party
Right of first offer to
acquire additional Loblaw
properties
Pipeline of ~10 million sq. ft. of
GLA
Opportunity to acquire
properties developed or
acquired by Loblaw
Third-party acquisitions
Focus on high quality supermarket anchored properties
Contractual rent increases
13 years average term to maturity for Loblaw leases
5 years average term to maturity for ancillary tenants
Leasing Focused marketing and merchandising for current vacancy and lease renewal
Property management Annualized capital ~$30M
~93% recoverable or directly paid by tenants
Development Acquisitions Active Management
18
19
Intensification – Brown’s Line, Toronto
10K LCBO
10k Dollarama
Existing 31K - Existing
Lakeshore Bld W
to Brown’s Line
Under Construction Proposed
20
Development – 24th Ave & 160th St, Surrey
Under Construction 50K Retail
46K Retail
15K Retail
Gas Bar Under Construction
24
th A
ven
ue
160th Street
120K
Proposed
Existing
Concept Only
21
Redevelopment – Example
Existing Complete
Proposed Mixed-Use (Retail / Res)
Existing 20k Retail
Residential (Rental)
15K Retail 40K Food Store
Existing Concept Only
Highlights
1. Loblaw – principal tenant and non-discretionary food store anchor
2. Strategic pipeline for long-term value creation
3. Solid capital structure with strong balance sheet and investment grade ratings
4. Sound growth strategy to enhance portfolio and provide stable, predictable and growing monthly distributions
5. Experienced internal management team with proven track record of owning, managing and developing retail real estate
22
Chief Operating Officer
Management
President & CEO John Morrison
Chief Financial Officer Bart Munn CPA, CA
Jane Marshall
Over 30 years experience in Real Estate
Former President and CEO, Primaris REIT and
President, Real Estate Management, Oxford Properties Group
Over 30 years experience in Real Estate
Former CFO, Calloway REIT and Vice President, CFO, Morguard
20 years experience as an executive in Loblaw’s Real Estate division
Former Executive Vice President Loblaw Properties & Business Strategy 23
24
Board Of Trustees
Trustees Position/Title Independent Committees Principal Occupation
Galen G. Weston
Ontario, Canada Chair No — Executive Chairman, Loblaw
John Morrison
Ontario, Canada
Trustee, President and
Chief Executive Officer No —
President and Chief Executive Officer
of Choice Properties
Christie J.B. Clark
Ontario, Canada Trustee Yes
Governance, Compensation
and Nominating Committee Corporate Director
Graeme Eadie
Ontario, Canada Trustee Yes Audit Committee
Senior Vice President, Head of Real
Estate Investments for Canada
Pension Plan Investment Board
Michelle Felman
Connecticut, United
States
Trustee Yes Governance, Compensation
and Nominating Committee Consultant, Vornado Realty Trust
Michael P. Kitt
Ontario, Canada Trustee Yes
Audit Committee,
Governance, Compensation
and Nominating Committee
Executive Vice President, Canada for
Oxford Properties Group
Daniel F. Sullivan
Ontario, Canada
Lead
Trustee Yes
Governance, Compensation
and Nominating Committee
(Chair)
Corporate Director
Paul R. Weiss
Ontario, Canada Trustee Yes Audit Committee (Chair) Corporate Director
Kerry D. Adams
Ontario, Canada Trustee Yes
Audit Committee,
Governance, Compensation
and Nominating Committee
President, K. Adams and Associates
Limited
IND
EPEN
DEN
T
25
Our Plans for 2014
Create value through
development and
redevelopment
Deliver 95K sq. ft. of retail
GLA (Toronto and
Stoney Creek, ON)
Construct 120K sq. ft. of
retail for delivery in 2015
(Surrey, BC)
Municipal applications filed -
future projects to be initiated
Grow asset base through
accretive acquisitions
Acquire additional properties
from Loblaw
Pursue desirable assets from
other vendors
Increase cash flow and enhance property value
Maximize portfolio occupancy
Drive performance through leasing, merchandising and effective capital investments
Implement new systems and processes
Internalize property management platform
Development Acquisitions Active Management
Conclusion
37.6 M sq. ft. of geographically diverse properties
Canada’s largest retailer as principal tenant and anchor
Opportunity for development and redevelopment
Dedicated pipeline for growth from Loblaw’s remaining portfolio of properties
Strong balance sheet and investment grade ratings
Experienced internal management team with proven track record of owning, managing and developing retail real estate
26
Investor Presentation June 2014