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Transcript of BOARD OF DIRECTORS AND MANAGEMENT...
REPORT OF ACTIVITY 2003
Board of Directors
Paul Campbell 1-4
President and CEOSITQ
Jean Cartier 2-4
Assistant Vice-Rector,Human ResourcesUniversité Laval
Claude Caty 2
Senior Manager, InvestmentsFiducie globale des régimes de retraite de la Société de transport de Montréal
André Charest 1-2
Vice-President,Administration and FinanceCDP CapitalReal Estate Group
Claude Dalphond 2-3
Administrator
Pierre Duhaime 1
Vice-President,Investments ManagementCDP CapitalReal Estate Group
Léopold GagnonPresidentGanotec inc.
Francine Harel-GiassonProfessorHEC-Montréal
Reynald N. Harpin 3
Vice-President,Pension InvestmentsPension FundsAlcan Adminco inc.
Raymond Laurin 2
Vice-President Accounting,Information Management andPension Fund DepartmentFédération des Caisses DesjardinsComité de retraite du MouvementDesjardins
Louis Monette 1
President and General ManagerChairman of the BoardAssociation de bienfaisance et de retraite des policiers et policières de la Ville de Montréal
Fernand Perreault 1-3
Chairman of the Board, SITQPresident CDP CapitalReal Estate Group
Michel SanschagrinVice President and General ManagerAdministration and Chief ActuaryIndustrielle Alliance
1- Member of the Executive Committee2- Member of the Audit Committee3- Member of the Human Resources
and Remuneration Committee4- Member of the Retirement Committee
Executive Officers
Paul CampbellPresident and Chief Executive Officer
Jean-Louis DubéSenior Vice President,Asset Management
Louiselle PaquinSenior Vice President, Finance
Yvon TessierSenior Vice President, Investments
Daniel ArchambaultVice President, Quebec
Michel CyrVice President,Development and Construction
Pierre LefebvreVice President, Human Resources and Corporate Services
Management Team
Denis ÉpohVice President, Investments
Jean-François FournierVice President, Asset Management
André GirardVice President, Asset Management
Yves-André GodonVice President, Leasing
Marc LemaireVice President, Financial Services
Sylvain PelletierVice President, Asset Management
Denis PerreaultVice President, Asset Management
Jean-Paul MouzinPresident and General ManagerSITQ Europe S.A.
Paul Jean-Louis Louiselle Yvon Daniel Michel PierreCampbell Dubé Paquin Tessier Archambault Cyr Lefebvre
BOARD OF DIRECTORS AND MANAGEMENT TEAM
SITQCentre CDP Capital1001, square VictoriaMontréal, Québec H2Z 2B1Telephone : (514) 287-1852www.sitq.com
Published by
Communications and Public Affairs
Vice Presidency, Human Resources
and Corporate Services
SITQ
Writing: Communicateurs du Fauve
Production: Langevin Turcotte
Printing: Lithographie G. Monette inc.
Copyright SITQ, 2004
ISSN 1492–305X
SITQ
Report of activity (English ed.)
Ce rapport est aussi disponible en français.
SITQ PROFILE
Since its inception in 1984, SITQ has upheld a tradition of excellencethat has made it a leader in NorthAmerican and Western European real estate. Founded by the Caisse de dépôt et placement du Québec(CDP) with invested capital of$9 million, SITQ’s portfolio ofholdings has now reached $7.5 billionand is mostly comprised of prestigiousdowntown office buildings.
SITQ also enjoys the support of it’sshareholders, who give it strengthand stability. These shareholdersinclude the Caisse de dépôt et placement du Québec, which owns a93.4% interest, Alcan Canada MasterTrust, the Association de bienfaisanceet de retraite des policiers et policièresde la Ville de Montréal, the Régime de rentes du Mouvement Desjardins,the Fonds commun de placement des régimes de retraite de l’UniversitéLaval and the Fiducie globale desrégimes de retraite de la Société detransport de Montréal.
Including buildings held and managedon behalf of third parties, SITQ nowmanages assets of $14 billion. Itsportfolio totals more than 69 millionsquare feet in 485 buildings inCanada, the United States, Franceand the United Kingdom.
SITQ’s team of 424 employeesensures its success with top-qualityproperty management, investmentand assets management know-how,and insight into the real estate development sector. The SITQ headoffice is located at the Centre CDPCapital, in Montreal. The Companyhas offices in Toronto, Ontario,and Vancouver, British Columbia,as well as in Brussels, Belgium.It can also rely on the CDP Capitalteam in Paris.
TABLE OF CONTENTS
01 Presidents’ Message04 Financial profile 06 Asset Management10 Portfolio Management14 Real Estate Development18 Corporate Services21 Holdings Portfolio
Board of Directors and Management TeamSkills Development
THE SITQ MISSION
SITQ’s main focus is to live up to the expectations of its...
... investors and shareholders,by offering them an organization,resources and top-quality productsdesigned to develop and manage realestate vehicles that are as competitiveas they are diversified.
... tenants, by offering them choicelocations and environments thatencourage the growth of their business.
... employees, by giving them a stimulating and healthy work environment.
OUR VALUES
Quality of serviceIntegrityImportance of human resourcesTeamworkEfficiencyInnovationCommunity involvement
2003 2002
Cash flow from operations 323,787 373,556Total assets (fair market value) 8,350,632 10,021,810Managed Assets 14,165,722 16,133,325Acquisitions 270,600 1,030,000Disposals 1,626,000 609,000Capital investments 332,000 552,102in the portfolioCurrent rate of return 8.8% 9.4%Overall yield 8.1% 3.8%
FINANCIAL HIGHLIGHTS
All amounts are in Canadian dollars unless otherwise mentionned.
Recruiting, developing and retaining the best talent
is a major challenge and is a priority at SITQ, whose
performance relies on the professionalism of its team.
In this regard, the Company has sought to create
a stimulating and open professional environment,
bolstered by real opportunities to develop skills, solid
training programs and a structured succession plan.
When it comes to training, SITQ has adopted a
proactive approach and offers numerous programs
geared toward new employees, managers and
personnel as a whole.
A range of specific training courses support SITQ
policies, laws and corporate governance. Moreover,
the value attributed by the Company to the human
aspect also gives rise to courses, workshops and
luncheon-seminars.
Furthermore, a few managers take advantage of
the specialized programs offered within the scope
of the Chaire en immobilier UQAM-SITQ, including
the unique MBA program in property management,
through which Company's employees earned
diplomas.
The calibre of the SITQ team and its commitment
to on-going improvement vouch for the continued
growth of the company and its ability to deliver
sustained performance that lives up to the expec-
tations of the shareholders regarding earnings.
SKILLS DEVELOPMENT
(in thousand of dollars, except ratios)
FRONT PAGE:
MONTREAL HERALD’S ARCHITECTURAL LINTELSTANDING OUT AGAINSTCENTRE CDP CAPITALGLASS WALL.
1. TRAINING ON THE NEW CODE OF ETHICS
NATHALIE POMERLEAU, TONY ROY, FERNAND POIRIER, LISETTE ROY AND NATHALIE PELLETIER.
2. CHAIRE UQAM-SITQ PARTNERS
PAUL CAMPBELL AND PIERRE FILIATRAULT, DEANOF ÉCOLE DES SCIENCES DE LA GESTION, UQAM.
3. TRAINING ON QUALITY OF COMMUNICATIONS
CAROLINE HUPÉ, ALAIN CARRIÈRE, LUC PARENT, MIREILLE SOLARI, ROBERT BLAHUTA AND ARMAND MORIN.
4. MBA IN PROPERTY MANAGEMENT
ARMAND MORIN, JEAN-LOUIS DUBÉ, DENIS EPOH, ROBERT SHEITOYAN (PROGRAM DIRECTOR), DENIS PERREAULT AND JACQUES SAINT-PIERRE (INCUMBENT OF THE REAL ESTATE UQAM-SITQ CHAIRE).
1.
2.
3.
4.
PRESIDENTS’ MESSAGE
1
Throughout 2003, despite an uncertain economic
context, SITQ refocused its activities according to
the priorities targeted by its strategic plan of 2002.
Thus the company rounded out the year with a yield
that surpassed the indexes of its activity sector,
and its real estate portfolio has been restructured
in accordance with the business plan objectives.
In 2003, economic activity in North America and
Western Europe were characterized by a wait-and-see
attitude in the face of the uncertain economic recovery of
most markets. In Canada, the economy has nonetheless
shown a certain vigour despite the numerous events,
such as SARS and the mad cow disease crisis, that
affected it. At the end of the year, economic recovery
seemed well underway and had begun in Canada
before the United States, a rare occurrence.
In such a context, the vacancy rates increased,
particularly in class-B buildings, and 2004 will remain
difficult as regards rental, because predictions are that
the positive effects of economic recovery will only be
felt by the real estate market in 2005.
SITQ’s assets, a portfolio made up primarily of class-A
buildings, are less vulnerable, but the Company was
nevertheless affected by this situation in its markets.
However, SITQ’s current yield reached 8.8%, as
compared to 9.4% in 2002, while its overall yield
has clearly improved, increasing from 3.8% in 2002
to 8.1% in 2003.
To take advantage of market opportunities and by
concentrating on its capacity to keep its portfolio
liquid, SITQ disposed of $1.6 billion worth of assets.
The Company’s net worth is now $8.3 billion,
whereas it reached a peak of $10 billion in 2002.
Cash flow from operations, after income tax and
interest, dipped slightly to $323.8 million, while net
profit rose by 35%, reaching $407.6 million in 2003.
STRATEGIC ALIGNMENT
Consequent to its international development over the
past ten years, SITQ’s main activities will henceforward
be assets management and portfolio management. The
direction is clear: SITQ is first and foremost a company
specializing in investments and transactions, that is, it
exercises dynamic management of its portfolio in order
to generate the best possible earnings with its assets.
The Company thus maximizes the performance of
each building – and its overall portfolio – while taking
advantage of opportunities to buy and sell in the markets
selected.
Aside from the revision of its fundamental trades, SITQ
precisely defined the prime markets in which it intends
to invest. The Company will thus be present in a limited
number of highly liquid and deep markets, in Canada,
the United States, France and England. Finally, the
Company has narrowed its sectors of investment
and is now concentrating its portfolio in prime office
buildings located in city centres as well as business
parks. In other respects, it allows itself the flexibility
to take the necessary actions to seize exceptional
opportunities outside of its strategic alignment.
FERNAND PERREAULT AND PAUL CAMPBELL
ACHIEVEMENTS IN 2003
SITQ’s achievements in 2003 are in perfect harmony with
its business plan. Due to market conditions, SITQ focused
its strategy on the sale rather than on the acquisition
of buildings. There were thus very few acquisitions in a
market that was not particularly conducive to it. However,
a considerable number of sales enabled the Company to
dispose of products that were no longer in line with its
investment strategy, make profits and pay shareholders
a return on their investment.
In 2003, SITQ formed an asset management team
designed to further its knowledge of foreign markets,
in close collaboration with its partners throughout the
world. The main objective of the Assets Management
Division is to create value so that SITQ’s investments
generate a satisfactory profit for its shareholders.
SITQ’s approach advocates improving the quality
of the tenants and of the premises offered, and making the
latter correspond with the expectations of an ever-more
demanding clientele. Therefore, SITQ transfers its expertise
to its partners, since the operational principles applied in
assets management have long since been proven effective
in the real estate management sector in Quebec.
3
PARTNERSHIPS
SITQ has almost always counted on partnerships to
consolidate its expansion in foreign markets. By associ-
ating with well-established firms, SITQ reduces its risk
factor while benefiting from their in-depth knowledge
of their respective markets. The first Canadian fund
to undertake international diversification, SITQ has
built an enviable reputation in the targeted markets
throughout the world.
SITQ is also assessing the possibility of establishing
partnership agreements in view of sharing the owner-
ship of buildings that it owns entirely, of its national
subsidiaries and even of the company stock ownership,
if a strategic opportunity were to present itself.
OUTLOOK FOR 2004
In 2004, the real estate market will continue to face a
major rental challenge in all of SITQ’s markets, and this
for as long as the winds of economic recovery are not
felt in the industry. However, given the quality of its real
estate portfolio, SITQ is confident that it will continue
to show satisfactory profits.
Regarding transactions, the Company wishes to establish
a balance between acquisitions and disposals. Naturally,
the business opportunities encountered will be deter-
mining factors in this regard, but SITQ has strong
footholds in its targeted markets and has the liquidity
needed to undertake large-scale transactions.
In short, next year, the Company will keep up the
momentum it had in 2003, which saw the completion
of its realignment strategy in record time while making
interesting profits, despite a difficult economic situation.
We would like to personally thank the members of
our team, who make invaluable contributions to our
achievements and who are deeply committed to the
success of SITQ. The Company knows it can count on
them and ensures that they are allowed to reach their
full professional potential.
We would also like to thank the members of the Board
of Directors, who support the company by overseeing
its activities with an analytical yet positive eye. Finally,
we wish to extend our gratitude to our shareholders
and partners for the trust they put in us and for their
unshakeable strategic support.
Paul Campbell Fernand Perreault
President and Chairman of the Chief Executive Officer Board of Directors
4
Rental 1,101,314 1,144,038 926,331 713,847 610,841
Investment income 11,636 6,733 25,639 23,322 8,924
Cash flow from operations (before taxes and interest) 506,089 585,999 509,072 418,173 336,734
Cash flow from operations1 (after taxes and interest) 323,787 373,556 298,775 236,916 198,625
Net profit1 and 2 407,631 266,944 312,210 182,991 94,269
1. Excluding the interest payable to shareholders on subordinate debentures and exceptional items.2. Starting on January 1, 1999, the results of Bentall Corporation have been consolidated.If this investment
had been listed at its consolidation value, the amount of rent, investment income and cash-flow, both before taxes and interest and after taxes and interest, would have been $397,508, $18,192 and $254,837.
FINANCIAL PROFILE
Total assets 8,350,632 10,021,810 8,624,073 7,006,414 5,293,376
Real estate assets 6,897,414 8,652,067 7,472,432 6,125,450 4,579,459
Real estate investments 523,186 573,108 550,299 527,740 424,248
Third-party debts 3,972,803 5,046,196 4,190,743 3,356,016 2,518,542
Shareholders’ equity 3,244,299 3,986,925 3,828,877 2,684,478 1,970,277in the Corporation
Coverage and ratios
Interest coverage 2.91 2.82 2.52 2.44 2.56
Debt ratio (third-party debts/total assets) 50% 50% 49% 48% 48%
Immobilisations
Acquisitions 270,600 1,030,000 1,718,800 1,373,100 370,221
Disposals 1,626,000 609,800 1,191,100 384,800 129,870
Portfolios’ capital improvements 1 332,000 552,102 633,716 305,849 214,100
Yields
Current rate of return (cash flow from 8.8% 9.4% 9.0% 8.9% 9.5%operations on shareholders’ equity at market value)
Overall yield 8.1% 3.8% 12.7% 17.9% 13.3%(current rate of return plus capital appreciation yield)
1. Capital expendures, which include Bentall Corporation’s capital expenditures since 1999, totalled $86,054 in 1999.
Fiscal year (in thousand of dollars)
For the fiscal year ended December 31 2003 2002 2001 2000 1999
Fair value (in thousand of dollars, except ratios)
For the fiscal year ended December 31 2003 2002 2001 2000 1999
5
Holdings portfolio breakdown by sector
Holdings portfolio breakdownby region
20022003
75.485.2
Offices
7.82.9
Commercial
12.58.5
Development
4.33,.4
Others
90908080707060605050404030302020101000
20022003
21.325.5
Quebec
4.95.8
Ontario
10.19.0
Western Canada
36.733.4
United States
27.026.3
Europe
90908080707060605050404030302020101000
Asset Management1515 BROADWAY,NEW YORK
The value of the SITQ portfolio outside of Canada has
been growing steadily for several years. It now repre-
sents 60% of the real estate assets of the company.
Ever since it started acquiring buildings abroad, SITQ
has always paid special attention to the quality of
its asset management. This is the criterion it uses
to select choice partners. Moreover, given the extent
of its international portfolio and the complex issues
related to its sector of activity, the Company decided
to step up its direct involvement in the management
of its assets.
To support the growth of its foreign portfolio, SITQ
put together a team that specializes in optimizing
the value of each of the Company’s assets.
Asset management includes several points that cover
all the basic criteria for achieving superior earnings:
• Market intelligence, that is, in-depth knowledge
and development of each market targeted
by the strategic plan.
• Relationship with the partners, particularly
in maintaining the quality of business relations
and holdings structures.
• Financial risk management, including reliability,
quality and diversity of tenants.
• Contribution to real estate management, which
encompasses all the facets of managing a building,
such as negotiating and supervising management
and rental contracts, services for tenants, recom-
mendations and follow-up of rental and capital
asset policies.
• Creation of value, which consists in identifying
all the opportunities to generate or increase the
revenues of a building.
SITQ plays an active role in all aspects that have
an impact on the value and appreciation of its
assets, with priority given to contributing to maxi-
mizing occupancy of buildings under management.
The current rental market has slowed down in most
of the countries targeted by the Company. The value
of a building is highly dependent on its occupancy
rate. SITQ will adapt its expertise to reduce vacancy
rates to a minimum by improving, among other
things, the lease renewal rate. In the buildings
it manages, this rate is more than 70%, whereas
it is only about 35% in the markets where the
Company invests.
With in-depth knowledge of the components of the
markets it is developing, SITQ is in a better position
than ever to make informed decisions to undertake
transactions that will render the expected earnings.
REAL ESTATE MANAGEMENT IN QUEBEC
SITQ started out as a Quebec-based real estate
owner and management company. This is the foun-
dation on which the Company has built its unique
know-how, which it exports beyond Canadian borders.
In 2003, SITQ invested some $30 million in buildings
in Quebec, allowing for substantial property
enhancements that maintain or increase the value
of its portfolio.
7
8
SITQ’s focus in Quebec was on rental, as in all
its markets. This was quite a challenge since the
Centre CDP Capital, by welcoming the teams of
the Caisse de dépôt et placement du Québec and its
subsidiaries, was freeing sizeable blocks of space in
SITQ buildings. In addition, in the first eight months
of the year, the rental market was on the fence due
to economic uncertainty. Despite this unfavourable
context, the Company’s performance was comparable
to the rest of the market, and closed out the year
with a vacancy rate of 12%.
SITQ has adopted proactive rental strategies.
Moreover, its determination to satisfy its clientele and
offer exceptional service quality gives the Company
a substantial edge in a competitive market.
This approach was demonstrated by several actions.
For example, customer service for SITQ buildings in
Quebec was centralized and now focuses more than
ever on the quality, responsiveness and standardiza-
tion of services in line with best business practices.
This initiative required a whole range of actions
from the training of staff to the simplification of
procedures.
Furthermore, SITQ conducted a customer satisfaction
survey in Quebec in view of pursuing its constant
improvement approach. Based on very positive
results, the Company developed a specific action
plan for each of its buildings in order to best meet
the needs of its tenants.
SITQ also oversaw the start-up of the Centre CDP
Capital, a non-traditional activity for the company.
As this building is a business centre for the Caisse
and its subsidiaries, the Company set up all the
internal support services – mail, reprographic
printing, etc. – that a large-scale company needs
to run efficiently.
Finally, the real estate management team contributed
to refocusing the SITQ portfolio in Quebec and
conducted its activities to ensure that transactions
would be completed smoothly.
In 2003, the Quebec real estate management team
took up major challenges most effectively. In 2004,
focus will continue to be on rental and the satisfac-
tion of the tenants and occupants of the buildings,
two priorities that are essential for generating solid
earnings for shareholders.
ASSET MANAGEMENT
MEETING WITH CLIENTS
SEATING, CLOCKWISE: CATHERINE SCHRAENEN-LEDUC,FRANÇOIS LEFEBVRE, NATHALIE KHOROMANSKY (SAMSON BÉLAIR), CLAUDE PERRIER (GE CAPITAL),DANIEL ARCHAMBAULT AND AMANI SAWAYA (HSBC).STANDING: CAROLE ARBOUR.
9
REAL ESTATE MANAGEMENT IN CANADA
Outside of Quebec, SITQ also handles real estate
management throughout Canada, through its sub-
sidiary Bentall Capital L.P. (BCLP), whose head office
is located in Vancouver. The BCLP team manages
some 10 million square feet in Ontario, Alberta,
and British Columbia, as well as in Seattle, in
the United States. BCLP is responsible for rental,
property management and asset management
of the buildings in its portfolio.
In Western Canada, as in Toronto, SITQ faces
difficult markets where the vacancy rates are high
and sometimes show negative absorption rates.
In these markets, also, rental and customer service
are therefore top priorities.
The management practices developed in Quebec
is gradually implanted in these markets: dynamic
rental methods, lease extensions, early lease renewal,
etc. This approach for securing leases is beneficial
to both the landlord and the tenant, while it adds
to the value of the building.
As in its operations outside of Canada, the SITQ asset
management team is active in the markets managed
by BCLP, in order to facilitate the transfer
of know-how and contribute to enhancing the value
of this substantial portfolio.
ASSET MANAGERS
JEAN-FRANÇOIS FOURNIER, TONY ROY AND DENIS PERREAULT (FOREGROUND).
JEAN-LOUIS DUBÉ, ANDRÉ GIRARD AND JEAN-CHARLES VIARD.
Portfolio Management
CENTRE CDP CAPITAL’SPARQUET, MONTREAL
11
In 2003, SITQ refocused its assets portfolio, both
in the designated markets and for selected products.
The Company’s prime markets are Canada (Montreal,
Toronto, Vancouver and Calgary), United States
(New York, Washington, Boston and the American
West Coast) and Europe (Paris and London). These are
fluid markets that offer both depth and buoyancy.
Basically, SITQ aims to concentrate its portfolio
in prestigious office buildings and business parks.
In other respects, market conditions prompted SITQ
to accelerate its disposal plan. The Company thus
disposed of $1.6 billion in assets, while its acquisitions
totalled $300 million.
A CONSTANTLY CHANGING PORTFOLIO
Internationally, real estate transactions are on the
rise. In 2003, several players were in buying mode,
a tangible sign that real estate remains a reliable
investment. This context allowed SITQ to accelerate
the refocusing of its portfolio while taking advantage
of the opportunities offered by a buyer’s market.
In Canada, SITQ disposed of assets that were no
longer compatible with its strategic priorities. Thus,
in Western Canada, SITQ disposed of two products
that were no longer targeted: a large shopping
centre in Victoria, and its interests in Apex, a resi-
dential development company located in Calgary.
In Quebec, the Company sold a large part of its
shopping centre portfolio to its sister company,
Ivanhoé Cambridge, which specializes in the man-
agement of this type of product. SITQ will gradually
sell its few remaining shopping centres. It also
disposed of several of its buildings in Laval as well
as land it owned in the Saint-Laurent district and
in Quebec City, as they no longer corresponded
to the markets targeted.
In the United States, also, SITQ pulled out of markets
that are now out of focus, that is, Los Angeles and
San Diego. The Company also disposed of five of the
six buildings that remained in the Loutex portfolio,
in Texas and Louisiana. Moreover, it took advantage
of the window of opportunity, in early 2004, to sell
two buildings in Washington, a choice market where
it intends to pursue its active portfolio management
operations.
Finally, in Europe, SITQ sold the Tour Adria and
capitalized on the appreciation of the value generated
in this major development project. It also disposed
of its interests in Castle Quay Centre, Banbury,
United Kingdom, and some of its units in Hercules
Unit Trust, thus reducing its participation to 5.3%.
TARGETED ACQUISITIONS
Although sales made up most of SITQ’s transactions
in 2003, the Company nevertheless acquired several
assets consistent with its strategic alignment.
12
In Canada, in keeping with its mission as a real
estate management firm, SITQ acquired four buildings
that formerly belonged to the Caisse de dépôt et
placement du Québec, namely, the Price Building
in Quebec City, and the buildings located on the
same quadrangle as its Montreal business center:
the Centre CDP Capital, the Montreal Herald and
415 Saint-Antoine, known as MECO. These buildings
represent an appreciable contribution to the
architectural heritage of Quebec and respect the
commitment of SITQ to devote a portion of its
portfolio to long-term holdings.
Finally, the Company acquired interests in Colyzeo
Investments, a major European real estate fund.
Although this type of investment remains marginal
according to the Company’s business plan, it repre-
sents an interesting financial lever and constitutes a
prime vehicle in view of a possible future partnership.
.
KNOW-HOW TO SUPPORT PARTNERS
Active in international markets since 1993, SITQ
has developed a wealth of know-how in tax systems,
financing and financial packaging. Its partners
recognize its ability to maximize the value of its real
estate assets. In fact, the SITQ team masters all of
the vehicles available and is well-versed in the art
of finding solutions that are tailored to the needs
and constraints of those involved.
SITQ’s flexible, creative and thorough approach is
naturally a valuable contribution to the partnership
agreements signed by the Company. Together with
the Company’s know-how in all the facets of real
estate, SITQ’s expertise in the financial and fiscal
side of the industry is another lever in the niche
of asset management for third parties, a growing
activity at SITQ.
TRANSACTIONAL BALANCE IN 2004
In 2003, the high demand of real estate investors
proved to be quite fortunate for SITQ, which was
able to refocus its portfolio quickly and profitably.
The Company disposed of marginal buildings
and assets that had come to maturity, thus cashing
in gains at the top of the cycle.
In 2004, SITQ will aim for balance between its acqui-
sitions and disposals. However, it will keep a close
watch on market conditions and opportunities, and
will continue to make its transactions with the sole
purpose of maximizing earnings for its shareholders.
PORTFOLIO MANAGEMENT
FINANCIAL AND FISCAL MANAGEMENT
MICHEL BORDUAS, LOUISELLE PAQUINAND MARC LEMAIRE.
LA DÉFENSE, PARISTOUR ADRIA, AT RIGHT HAND SIDE.
Real Estate Development
BENTALL TOWER V, VANCOUVER
BENTALL TOWER V UNDER CONSTRUCTION, VANCOUVER
15
SITQ invests considerable amounts in the buildings
it owns to constantly improve the quality of its
portfolio and thus optimize its value. Furthermore,
SITQ undertakes development and construction
projects when opportunities for profit have been
identified. For the Company, real estate development
is first and foremost a way to invest in view of
obtaining higher yields.
However, although several development and
construction projects in progress were completed
last year, no new projects were undertaken because
disposals were the priority in 2003.
DEVELOPMENT IN CANADA
Several development projects in Quebec were
completed this year. At the Cité Multimédia, the first
seven phases, totalling 1 million square feet, of which
more than 95% is rented, were sold at the beginning
of 2004. The construction of a final building, in which
SITQ is partner for 37.5%, was also completed, with
only the fitting out of the future tenants remaining
to be completed.
CITÉ MULTIMÉDIA, MONTREAL
PHASE 8 PHASE 4
16
In Western Canada, the construction of the Bentall
Tower V has been completed and the building is in
use. Bentall Centre is a prestigious complex of office
buildings in downtown Vancouver. Tower V has
23 floors – 344,000 square feet – to which another
11 floors may be added as soon as the rental market
is favourable.
Finally, Building A of the IBM Corporate Park,
in Calgary, was completed and opened.
DEVELOPMENT INTERNATIONALLY
Outside of Canada, in order to share risk and expand
its expertise, SITQ is undertaking development projects
jointly with partners that have extensive knowledge
of their respective markets.
In the United States, the Company pursued – and will
continue to do so in 2004 – the major undertaking
of restoring and expanding 340 Madison Avenue,
in New York. The project represents considerable
enhancement of the value of this property, upgrading
it from class-B to a class-A building. Furthermore,
in Bellevue, a suburb of Washington, Phase I of
the Summit project, a 13-story office building with
310,000 square feet of rental space, was completed
and opened. Phase II of this project will start as soon
as the occupancy rate is sufficient.
In Europe, SITQ and its partner, Colony Capital, found
a single tenant who will rent the entire Tour Adria,
a development project that was completed in 2002
in the district of La Défense, Paris. This class-A office
building was sold in 2003, thus enabling the Company
to make a profit on this project.
Still in Paris, SITQ and Colony Capital obtained the
construction permits for the development of T1 Tower,
a 37-story office building with 750,000 square feet
of space. The plans and specifications of this major
undertaking were completed and construction may
begin when the rental conditions become favourable.
Finally in London, where the rental market is slow,
construction of new phases of the Chiswick Park
complex has been put on hold pending an upturn
in this sector.
In accordance with its strategic plan, in 2003
SITQ completed various development projects that
contributed to the performance of the company.
It will continue down this path in 2004, while keeping
an eye open for new, promising opportunities.
REAL ESTATE DEVELOPMENT
17
SUMMIT, BELLEVUE
LA DÉFENSE, TOUR T1, PARISSCALE MODEL
340 MADISON, NEW YORK
SUMMIT, BELLEVUE
Corporate Services
CHARLINE SYLVESTRE
19
In the performance of its activities, SITQ relies on
a team that handles all the services necessary for
the smooth running of the company. Like the trans-
actional and operational services of the Company,
corporate services fell into step with the refocusing
of strategic orientation.
Then, in accordance with its strategic priorities, SITQ
remodelled its organizational structure in 2003 to
create a team specialized in asset management. In
the upcoming years, the company will maintain its
proactive approach to ensure that the structure and
work organization remain flexible and able to adapt
to market challenges and business opportunities.
CENTRE CDP CAPITAL,MONTREAL
20
Regarding information technologies, the software
package OneWorld Xe by J.D. Edwards has been
operational since April 2003, and is producing the
expected results. Recognized as the best transactional
system for real estate management, it provides
the data necessary for the decision-making process
and supports long-term growth and development of
the Company.
SITQ also remains committed to the community, and
is pursuing with conviction its social involvement.
This year, its annual golf tournament, La Classique
SITQ, made it possible to donate some $175,000 to
charitable organizations. Furthermore, considerable
sums were donated to various organizations, in
accordance with the Company’s policy on donations
and sponsorships.
Finally, SITQ renewed its commitment to fund the
Chaire en immobilier of the Université du Québec
à Montréal. This initiative enables UQAM to offer
graduate and post-graduate programs in real estate, as
well as platforms for exchange and on-going training.
CORPORATE SERVICES
The Human Resources Department continues
to work toward making SITQ a choice employer.
The focus is on succession planning and the
development of skills, with all the initiatives that
this engenders, the objective naturally being to
enable all employees to fulfil their potential and
remain keen to take on new challenges. SITQ is also
eager to ensure the quality of its team in the long
term in view of forecasts of personnel shortages.
Accredited by the Mouvement québécois de la
qualité, SITQ upholds its commitment to the quality
of its processes and services. This consciousness
that characterizes the staff as a whole is definitely
one of the strengths of the Company.
PIERRE LEFEBVRE AND FRANÇOISE ELIE-BRADY IN FRONT OF THE ONEWORLD Xe SERVER.
CENTRAIDE’S UMBRELLAS WALK
NICOLE MONTSION, VINCENZO VENTURA, MIREILLE SOLARI, FANNIE TRÉPANIER ANDCLAUDETTE HUDON.
21
HOLDING PORTFOLIO
QuebecShopping centres and miscellaneous propertiesCarrefour Alma Alma 100 257,000 24,000Place du Havre Chandler 100 86,000 8,000Édifice 1212 Chicoutimi 100 25,000 2,000Place du Saguenay Chicoutimi 100 305,000 28,000Carrefour Gaspé Gaspé 90 139,000 13,000Galeries Jonquière Jonquière 100 229,000 21,000Grande Place Rimouski 50 150,000 14,000Carrefour Jeannois Roberval 100 118,000 11,000Sphèretech Saint-Laurent 100 192,000 18,000Subtotal 1,501,000 139,000
QuebecOffice buildings, mixed-use complexes and business parks420 Armand-Frappier Laval 100 50,000 5,000440 Armand-Frappier Laval 100 49,000 5,000480 Armand-Frappier Laval 100 49,000 5,000415 Saint-Antoine (MECO) Montreal 100 51,000 5,000500 Sherbrooke West Montreal 50 480,000 45,0001000 de la Gauchetière West Montreal 100 910,000 85,0001055 blvd. René-Lévesque East Montreal 55 134,000 12,0001981 McGill College Montreal 85 643,000 60,0002001 McGill College Montreal 100 509,000 47,000Centre CDP Capital Montreal 100 568,000 53,000Montreal World Trade Center Montreal 100 564,000 52,000Cité Multimédia (Phases I to VII operational) Montreal 37.5 970,000 90,000Édifice Sun Life Montreal 50 942,000 88,000Le Windsor Montreal 50 257,000 24,000Place Victoria Montreal 50 1,050,000 98,000Place Ville-Marie Montreal 100 2,567,000 239,000Édifice de la Haute-Ville Quebec City 100 266,000 25,000Édifice Mérici Quebec City 100 126,000 12,000Édifice Price Quebec City 100 57,000 5,000RD Tech Quebec City 100 99,000 9,000Complexe de Ville Sainte-Foy 100 208,000 19,0001111 Dr.-Frederik-Philips Saint-Laurent 100 101,000 9,0003300 Côte-Vertu Saint-Laurent 100 97,000 9,0007075 Place Robert Joncas Saint-Laurent 100 220,000 20,0006801 des Grandes Prairies Saint-Léonard 60 281,000 26,000Subtotal 11,248,000 1,047,000
21
Buildings Location Share Leasable Leasable(%) area area
(in sq. ft.) (in sq. meters)
HOLDING PORTFOLIO
22
Buildings Location Share Leasable Leasable(%) area area
(in sq. ft.) (in sq. meters)
OntarioOffice buildings, mixed-use complexes and business parksAIG Building Burlington 100 91,000 8,000Burloak Tech Park (6 buildings) Burlington 100 429,000 40,000Airport Square Mississauga 100 116,000 11,000College Square Mississauga 100 86,000 8,000College Square II Mississauga 100 158,000 15,00090 Sheppard North York 100 265,000 25,00055 University Toronto 100 264,000 25,000North York Centre Toronto 100 467,000 43,000Steeles Technology Campus
3381 Steeles Avenue Toronto 25 174,000 16,0003389 Steeles Avenue Toronto 25 330,000 31,0003900/4000 Victoria Place (2 buildings) Toronto 25 130,000 12,000
York Mills Centre Toronto 100 538,000 50,000Subtotal 3,048,000 284,000
Western CanadaOffice buildings, mixed-use complexes and business parksPalliser Square
One Palliser Square Calgary 100 378,000 35,000Tower Centre Calgary 100 259,000 24,000
IBM Centre Building A Calgary 100 122,000 11,000Crestwood Corporate Centre (9 buildings) Centre Richmond 50 757,000 70,0001075 West Georgia Vancouver 25 364,000 34,0001166 West Pender Vancouver 100 140,000 13,000Bentall Centre
Tower I Vancouver 60 262,000 24,000Tower II Vancouver 60 175,000 16,000Tower III Vancouver 60 492,000 46,000Tower IV Vancouver 75 571,000 53,000Tower V Vancouver 100 345,000 32,000
Subtotal 3,865,000 358,000
23
HOLDING PORTFOLIO
Buildings Location Share Leasable Leasable(%) area area
(in sq. ft.) (in sq. meters)
United StatesOffice building, mixed-use complexes and business parksNewport Corporate Center
One Newport Bellevue 100 90,000 8,000Two Newport Bellevue 100 40,000 4,000Four Newport Bellevue 100 154,000 14,000Five Newport Bellevue 100 283,000 26,000Newport Heights Bellevue 100 33,000 3,000Newport Terrace Bellevue 100 136,000 13,000Newport Tower Bellevue 100 222,000 21,000
Summit Ridge Bellevue 100 68 ,000 6,000The Summit Bellevue 100 309,000 29,000One Boston Place Boston 49.75 784,000 73,000The Center (11 buildings) Dallas 75 881,000 82,000Campus at Cherry Creek (3 buildings) Denver 100 355,000 33,000Cherry Creek Corporate Centre Denver 100 238,000 22,0001001 McKinney Houston 49.99 377,000 35,0001 Park Avenue New York 45 913,000 85,000498 7th Avenue New York 49.90 874,000 81,0001250 Broadway New York 45.135 632,000 59,0001515 Broadway New York 45.135 1,610,000 150,000Millenium Business Park
Building A Redmond 100 81,000 8,000Building B Redmond 100 88,000 8,000Building C Redmond 100 100,000 9,000Building D Redmond 100 99,000 9,000Building E Redmond 100 81,000 8,000Building F Redmond 100 88,000 8,000
US Bank Centre Seattle 50 932,000 87,000First Union Centre Tampa 49.99 389,000 36,000Amarillo Texas 90 306,000 28,000Investment Building Washington D.C. 47.5 371,000 34,000Republic Place Washington D.C. 40 213,000 20,000Sequoia Plaza Washington D.C. 40.992 371,000 34,000Subtotal 11,118,000 1,033,000
FranceOffice building, mixed-use complexes and business parksLa Défense
L’Esplanade Paris 55.02 551,000 51,000Tour Pacific Paris 55.02 524,000 49,000Tour Prisma Paris 55.02 260,000 24,000Le Michelet Paris 55.02 186,000 17,000Le Diamant Paris 55.02 142,000 13,000Utopia (Boieldieu) Paris 55.02 53,000 5,000
Le Friedland Paris 55.02 108,000 10,000L’Anjou Paris 55.02 103,000 10,000Subtotal 1,927,000 179,000
Hôtel Jardins de Paris Paris 80 470 rooms
United KingdomCity of London Unit Trust (CLOUT) London 37.5 892,000 83,000Subtotal 892,000 83,000
Leasable Leasablearea area
(in sq. ft.) (in sq. meters)
Location Share Leasable Leasable(%) area area
(in sq. ft.) (in sq. meters)
24
Canada 19,662,000 1,828,000United States 11,118,000 1,033,000 Europe 2,819,000 262,000
Total of SITQ’s holding portfolio 33,599,000 3,123,000
Total of SITQ’s portfolio of managed properties (excluding investments) 69,097,000 6,407,000
340 Madison New York 49.9 700,000 65,000
Total of SITQ’s portfolio
HOLDING PORTFOLIO
Main property in development (investment of over $100 millions)
Published by
Communications and Public Affairs
Vice Presidency, Human Resources
and Corporate Services
SITQ
Writing: Communicateurs du Fauve
Production: Langevin Turcotte
Printing: Lithographie G. Monette inc.
Copyright SITQ, 2004
ISSN 1492–305X
SITQ
Report of activity (English ed.)
Ce rapport est aussi disponible en français.
SITQ PROFILE
Since its inception in 1984, SITQ has upheld a tradition of excellencethat has made it a leader in NorthAmerican and Western European real estate. Founded by the Caisse de dépôt et placement du Québec(CDP) with invested capital of$9 million, SITQ’s portfolio ofholdings has now reached $7.5 billionand is mostly comprised of prestigiousdowntown office buildings.
SITQ also enjoys the support of it’sshareholders, who give it strengthand stability. These shareholdersinclude the Caisse de dépôt et placement du Québec, which owns a93.4% interest, Alcan Canada MasterTrust, the Association de bienfaisanceet de retraite des policiers et policièresde la Ville de Montréal, the Régime de rentes du Mouvement Desjardins,the Fonds commun de placement des régimes de retraite de l’UniversitéLaval and the Fiducie globale desrégimes de retraite de la Société detransport de Montréal.
Including buildings held and managedon behalf of third parties, SITQ nowmanages assets of $14 billion. Itsportfolio totals more than 69 millionsquare feet in 485 buildings inCanada, the United States, Franceand the United Kingdom.
SITQ’s team of 424 employeesensures its success with top-qualityproperty management, investmentand assets management know-how,and insight into the real estate development sector. The SITQ headoffice is located at the Centre CDPCapital, in Montreal. The Companyhas offices in Toronto, Ontario,and Vancouver, British Columbia,as well as in Brussels, Belgium.It can also rely on the CDP Capitalteam in Paris.
TABLE OF CONTENTS
01 Presidents’ Message04 Financial profile 06 Asset Management10 Portfolio Management14 Real Estate Development18 Corporate Services21 Holdings Portfolio
Board of Directors and Management TeamSkills Development
THE SITQ MISSION
SITQ’s main focus is to live up to the expectations of its...
... investors and shareholders,by offering them an organization,resources and top-quality productsdesigned to develop and manage realestate vehicles that are as competitiveas they are diversified.
... tenants, by offering them choicelocations and environments thatencourage the growth of their business.
... employees, by giving them a stimulating and healthy work environment.
OUR VALUES
Quality of serviceIntegrityImportance of human resourcesTeamworkEfficiencyInnovationCommunity involvement
2003 2002
Cash flow from operations 323,787 373,556Total assets (fair market value) 8,350,632 10,021,810Managed Assets 14,165,722 16,133,325Acquisitions 270,600 1,030,000Disposals 1,626,000 609,000Capital investments 332,000 552,102in the portfolioCurrent rate of return 8.8% 9.4%Overall yield 8.1% 3.8%
FINANCIAL HIGHLIGHTS
All amounts are in Canadian dollars unless otherwise mentionned.
Recruiting, developing and retaining the best talent
is a major challenge and is a priority at SITQ, whose
performance relies on the professionalism of its team.
In this regard, the Company has sought to create
a stimulating and open professional environment,
bolstered by real opportunities to develop skills, solid
training programs and a structured succession plan.
When it comes to training, SITQ has adopted a
proactive approach and offers numerous programs
geared toward new employees, managers and
personnel as a whole.
A range of specific training courses support SITQ
policies, laws and corporate governance. Moreover,
the value attributed by the Company to the human
aspect also gives rise to courses, workshops and
luncheon-seminars.
Furthermore, a few managers take advantage of
the specialized programs offered within the scope
of the Chaire en immobilier UQAM-SITQ, including
the unique MBA program in property management,
through which Company's employees earned
diplomas.
The calibre of the SITQ team and its commitment
to on-going improvement vouch for the continued
growth of the company and its ability to deliver
sustained performance that lives up to the expec-
tations of the shareholders regarding earnings.
SKILLS DEVELOPMENT
(in thousand of dollars, except ratios)
FRONT PAGE:
MONTREAL HERALD’S ARCHITECTURAL LINTELSTANDING OUT AGAINSTCENTRE CDP CAPITALGLASS WALL.
1. TRAINING ON THE NEW CODE OF ETHICS
NATHALIE POMERLEAU, TONY ROY, FERNAND POIRIER, LISETTE ROY AND NATHALIE PELLETIER.
2. CHAIRE UQAM-SITQ PARTNERS
PAUL CAMPBELL AND PIERRE FILIATRAULT, DEANOF ÉCOLE DES SCIENCES DE LA GESTION, UQAM.
3. TRAINING ON QUALITY OF COMMUNICATIONS
CAROLINE HUPÉ, ALAIN CARRIÈRE, LUC PARENT, MIREILLE SOLARI, ROBERT BLAHUTA AND ARMAND MORIN.
4. MBA IN PROPERTY MANAGEMENT
ARMAND MORIN, JEAN-LOUIS DUBÉ, DENIS EPOH, ROBERT SHEITOYAN (PROGRAM DIRECTOR), DENIS PERREAULT AND JACQUES SAINT-PIERRE (INCUMBENT OF THE REAL ESTATE UQAM-SITQ CHAIRE).
1.
2.
3.
4.
Published by
Communications and Public Affairs
Vice Presidency, Human Resources
and Corporate Services
SITQ
Writing: Communicateurs du Fauve
Production: Langevin Turcotte
Printing: Lithographie G. Monette inc.
Copyright SITQ, 2004
ISSN 1492–305X
SITQ
Report of activity (English ed.)
Ce rapport est aussi disponible en français.
SITQ PROFILE
Since its inception in 1984, SITQ has upheld a tradition of excellencethat has made it a leader in NorthAmerican and Western European real estate. Founded by the Caisse de dépôt et placement du Québec(CDP) with invested capital of$9 million, SITQ’s portfolio ofholdings has now reached $7.5 billionand is mostly comprised of prestigiousdowntown office buildings.
SITQ also enjoys the support of it’sshareholders, who give it strengthand stability. These shareholdersinclude the Caisse de dépôt et placement du Québec, which owns a93.4% interest, Alcan Canada MasterTrust, the Association de bienfaisanceet de retraite des policiers et policièresde la Ville de Montréal, the Régime de rentes du Mouvement Desjardins,the Fonds commun de placement des régimes de retraite de l’UniversitéLaval and the Fiducie globale desrégimes de retraite de la Société detransport de Montréal.
Including buildings held and managedon behalf of third parties, SITQ nowmanages assets of $14 billion. Itsportfolio totals more than 69 millionsquare feet in 485 buildings inCanada, the United States, Franceand the United Kingdom.
SITQ’s team of 424 employeesensures its success with top-qualityproperty management, investmentand assets management know-how,and insight into the real estate development sector. The SITQ headoffice is located at the Centre CDPCapital, in Montreal. The Companyhas offices in Toronto, Ontario,and Vancouver, British Columbia,as well as in Brussels, Belgium.It can also rely on the CDP Capitalteam in Paris.
TABLE OF CONTENTS
01 Presidents’ Message04 Financial profile 06 Asset Management10 Portfolio Management14 Real Estate Development18 Corporate Services21 Holdings Portfolio
Board of Directors and Management TeamSkills Development
THE SITQ MISSION
SITQ’s main focus is to live up to the expectations of its...
... investors and shareholders,by offering them an organization,resources and top-quality productsdesigned to develop and manage realestate vehicles that are as competitiveas they are diversified.
... tenants, by offering them choicelocations and environments thatencourage the growth of their business.
... employees, by giving them a stimulating and healthy work environment.
OUR VALUES
Quality of serviceIntegrityImportance of human resourcesTeamworkEfficiencyInnovationCommunity involvement
2003 2002
Cash flow from operations 323,787 373,556Total assets (fair market value) 8,350,632 10,021,810Managed Assets 14,165,722 16,133,325Acquisitions 270,600 1,030,000Disposals 1,626,000 609,000Capital investments 332,000 552,102in the portfolioCurrent rate of return 8.8% 9.4%Overall yield 8.1% 3.8%
FINANCIAL HIGHLIGHTS
All amounts are in Canadian dollars unless otherwise mentionned.
Recruiting, developing and retaining the best talent
is a major challenge and is a priority at SITQ, whose
performance relies on the professionalism of its team.
In this regard, the Company has sought to create
a stimulating and open professional environment,
bolstered by real opportunities to develop skills, solid
training programs and a structured succession plan.
When it comes to training, SITQ has adopted a
proactive approach and offers numerous programs
geared toward new employees, managers and
personnel as a whole.
A range of specific training courses support SITQ
policies, laws and corporate governance. Moreover,
the value attributed by the Company to the human
aspect also gives rise to courses, workshops and
luncheon-seminars.
Furthermore, a few managers take advantage of
the specialized programs offered within the scope
of the Chaire en immobilier UQAM-SITQ, including
the unique MBA program in property management,
through which Company's employees earned
diplomas.
The calibre of the SITQ team and its commitment
to on-going improvement vouch for the continued
growth of the company and its ability to deliver
sustained performance that lives up to the expec-
tations of the shareholders regarding earnings.
SKILLS DEVELOPMENT
(in thousand of dollars, except ratios)
FRONT PAGE:
MONTREAL HERALD’S ARCHITECTURAL LINTELSTANDING OUT AGAINSTCENTRE CDP CAPITALGLASS WALL.
1. TRAINING ON THE NEW CODE OF ETHICS
NATHALIE POMERLEAU, TONY ROY, FERNAND POIRIER, LISETTE ROY AND NATHALIE PELLETIER.
2. CHAIRE UQAM-SITQ PARTNERS
PAUL CAMPBELL AND PIERRE FILIATRAULT, DEANOF ÉCOLE DES SCIENCES DE LA GESTION, UQAM.
3. TRAINING ON QUALITY OF COMMUNICATIONS
CAROLINE HUPÉ, ALAIN CARRIÈRE, LUC PARENT, MIREILLE SOLARI, ROBERT BLAHUTA AND ARMAND MORIN.
4. MBA IN PROPERTY MANAGEMENT
ARMAND MORIN, JEAN-LOUIS DUBÉ, DENIS EPOH, ROBERT SHEITOYAN (PROGRAM DIRECTOR), DENIS PERREAULT AND JACQUES SAINT-PIERRE (INCUMBENT OF THE REAL ESTATE UQAM-SITQ CHAIRE).
1.
2.
3.
4.
REPORT OF ACTIVITY 2003
Board of Directors
Paul Campbell 1-4
President and CEOSITQ
Jean Cartier 2-4
Assistant Vice-Rector,Human ResourcesUniversité Laval
Claude Caty 2
Senior Manager, InvestmentsFiducie globale des régimes de retraite de la Société de transport de Montréal
André Charest 1-2
Vice-President,Administration and FinanceCDP CapitalReal Estate Group
Claude Dalphond 2-3
Administrator
Pierre Duhaime 1
Vice-President,Investments ManagementCDP CapitalReal Estate Group
Léopold GagnonPresidentGanotec inc.
Francine Harel-GiassonProfessorHEC-Montréal
Reynald N. Harpin 3
Vice-President,Pension InvestmentsPension FundsAlcan Adminco inc.
Raymond Laurin 2
Vice-President Accounting,Information Management andPension Fund DepartmentFédération des Caisses DesjardinsComité de retraite du MouvementDesjardins
Louis Monette 1
President and General ManagerChairman of the BoardAssociation de bienfaisance et de retraite des policiers et policières de la Ville de Montréal
Fernand Perreault 1-3
Chairman of the Board, SITQPresident CDP CapitalReal Estate Group
Michel SanschagrinVice President and General ManagerAdministration and Chief ActuaryIndustrielle Alliance
1- Member of the Executive Committee2- Member of the Audit Committee3- Member of the Human Resources
and Remuneration Committee4- Member of the Retirement Committee
Executive Officers
Paul CampbellPresident and Chief Executive Officer
Jean-Louis DubéSenior Vice President,Asset Management
Louiselle PaquinSenior Vice President, Finance
Yvon TessierSenior Vice President, Investments
Daniel ArchambaultVice President, Quebec
Michel CyrVice President,Development and Construction
Pierre LefebvreVice President, Human Resources and Corporate Services
Management Team
Denis ÉpohVice President, Investments
Jean-François FournierVice President, Asset Management
André GirardVice President, Asset Management
Yves-André GodonVice President, Leasing
Marc LemaireVice President, Financial Services
Sylvain PelletierVice President, Asset Management
Denis PerreaultVice President, Asset Management
Jean-Paul MouzinPresident and General ManagerSITQ Europe S.A.
Paul Jean-Louis Louiselle Yvon Daniel Michel PierreCampbell Dubé Paquin Tessier Archambault Cyr Lefebvre
BOARD OF DIRECTORS AND MANAGEMENT TEAM
SITQCentre CDP Capital1001, square VictoriaMontréal, Québec H2Z 2B1Telephone : (514) 287-1852www.sitq.com
REPORT OF ACTIVITY 2003
Board of Directors
Paul Campbell 1-4
President and CEOSITQ
Jean Cartier 2-4
Assistant Vice-Rector,Human ResourcesUniversité Laval
Claude Caty 2
Senior Manager, InvestmentsFiducie globale des régimes de retraite de la Société de transport de Montréal
André Charest 1-2
Vice-President,Administration and FinanceCDP CapitalReal Estate Group
Claude Dalphond 2-3
Administrator
Pierre Duhaime 1
Vice-President,Investments ManagementCDP CapitalReal Estate Group
Léopold GagnonPresidentGanotec inc.
Francine Harel-GiassonProfessorHEC-Montréal
Reynald N. Harpin 3
Vice-President,Pension InvestmentsPension FundsAlcan Adminco inc.
Raymond Laurin 2
Vice-President Accounting,Information Management andPension Fund DepartmentFédération des Caisses DesjardinsComité de retraite du MouvementDesjardins
Louis Monette 1
President and General ManagerChairman of the BoardAssociation de bienfaisance et de retraite des policiers et policières de la Ville de Montréal
Fernand Perreault 1-3
Chairman of the Board, SITQPresident CDP CapitalReal Estate Group
Michel SanschagrinVice President and General ManagerAdministration and Chief ActuaryIndustrielle Alliance
1- Member of the Executive Committee2- Member of the Audit Committee3- Member of the Human Resources
and Remuneration Committee4- Member of the Retirement Committee
Executive Officers
Paul CampbellPresident and Chief Executive Officer
Jean-Louis DubéSenior Vice President,Asset Management
Louiselle PaquinSenior Vice President, Finance
Yvon TessierSenior Vice President, Investments
Daniel ArchambaultVice President, Quebec
Michel CyrVice President,Development and Construction
Pierre LefebvreVice President, Human Resources and Corporate Services
Management Team
Denis ÉpohVice President, Investments
Jean-François FournierVice President, Asset Management
André GirardVice President, Asset Management
Yves-André GodonVice President, Leasing
Marc LemaireVice President, Financial Services
Sylvain PelletierVice President, Asset Management
Denis PerreaultVice President, Asset Management
Jean-Paul MouzinPresident and General ManagerSITQ Europe S.A.
Paul Jean-Louis Louiselle Yvon Daniel Michel PierreCampbell Dubé Paquin Tessier Archambault Cyr Lefebvre
BOARD OF DIRECTORS AND MANAGEMENT TEAM
SITQCentre CDP Capital1001, square VictoriaMontréal, Québec H2Z 2B1Telephone : (514) 287-1852www.sitq.com