STABILITY, SECURITY & GROWTH · 2020-03-12 · STABILITY, SECURITY & GROWTH through QUALITY,...

H & R R e a l E s t a t e I n v e s t m e n t T r u s t ( T S X : H R . U N )

STABILITY,SECURITY& GROWTHTHROUGH QUALITY,DIVERSIFICATION & SCALE

DEBT INVESTORPRESENTATIONAs at September 30, 2019unless otherwise noted

2 STABILITY, SECURITY & GROWTH through QUALITY, DIVERSIFICATION & SCALE

Caution Regarding Forward-looking Statements

Forward Looking StatementsCertain statements made in this presentation will contain forward‐looking information within the meaning of applicable securities laws (also known as forward‐looking statements) including, among others, statements made or implied relating to H&R’s objectives, strategies to achieve those objectives, H&R’s beliefs,plans, estimates, projections and intentions and statements with respect to H&R’s development activities, including planned future expansions, redevelopmentof existing properties and building of new properties; the expected yield on cost of H&R’s developments and other investments; the expected costs of any ofH&R’s projects; and the expected occupancy, budget, net leasable area or contributions to rental revenue from H&R’s developments and other properties.Statements concerning forward‐looking information can be identified by words such as “outlook”, “objective”, “may”, “will”, “expect”, “intend”, “estimate”,“anticipate”, “believe”, “should”, “plans”, “project”, “budget” or “continue” or similar expressions suggesting future outcomes or events. Such forward‐lookingstatements reflect H&R’s current beliefs and are based on information currently available to management. Forward‐looking statements are provided for thepurpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statementsmay not be appropriate for other purposes. These statements are not guarantees of future performance and are based on H&R’s estimates and assumptionsthat are subject to risks and uncertainties, including those discussed in H&R’s materials filed with the Canadian securities regulatory authorities from time totime, including H&R’s MD&A for the quarter ended September 30, 2019 and H&R’s most recently filed annual information form, which could cause the actualresults and performance of H&R to differ materially from the forward‐looking statements made in this presentation. Although the forward‐looking statementsmade in this presentation are based upon what H&R believes are reasonable assumptions, there can be no assurance that actual results will be consistent withthese forward‐looking statements. Readers are also urged to examine H&R’s materials filed with the Canadian securities regulatory authorities from time totime as they may contain discussions on risks and uncertainties which could cause the actual results and performance of H&R to differ materially from theforward‐looking statements made in this presentation. All forward‐looking statements made in this presentation are qualified by these cautionary statements.These forward‐looking statements are made as of November 13, 2019 and H&R, except as required by applicable law, assumes no obligation to update orrevise them to reflect new information or the occurrence of future events or circumstances.

The REIT’s audited annual financial statements are prepared in accordance with IFRS. H&R’s management uses a number of measures which do not have ameaning recognized or standardized under IFRS or Canadian Generally Accepted Accounting Principles (“GAAP”). The non‐GAAP measures REIT’s proportionateshare, Same‐Asset property operating income (cash basis), Interest Coverage ratio and Net Asset Value (“NAV”), as well as other non‐GAAP measures discussedelsewhere in this presentation, should not be construed as an alternative to financial measures calculated in accordance with GAAP. Further, H&R’s method ofcalculating these supplemental non‐GAAP financial measures may differ from the methods of other real estate investment trusts or other issuers, andaccordingly may not be comparable. H&R uses these measures to better assess its underlying performance and provides these additional measures so thatinvestors may do the same. These non‐GAAP financial measures are more fully defined and discussed in H&R’s MD&A as at and for the nine months endedSeptember 30, 2019, available at www.hr‐reit.com and on www.sedar.com.

Non-GAAP Measures

All figures have been reported at H&R’s ownership interest unless otherwise stated.

Other

http://www.hr-reit.com/

http://www.sedar.com/


H&RTotal Investment Properties

$14.1 billion(1)

Office(1) Industrial(1)Retail(1)

(Primaris)Residential(1)

(Lantower Residential)

Long Term Leases Pension Fund JVStable Performance High Growth Opportunity

33 Properties ~10,810,000 Square Feet

87 Properties~9,177,000 Square Feet

316 Properties~13,888,000 Square Feet

24 Properties8,443 Residential Rental Units

The Bow, Calgary

Corus Quay, Toronto

Front St., Toronto

Dufferin Mall, Toronto

Orchard Park, Kelowna

Unilever, Mississauga

Grande Pines, Orlando

Legacy Lakes, Dallas

Stability, Security & Growth through Quality, Diversification & Scale

Fully Internalized Management (Insiders own 6%)

One of the Largest REITs in Canada With a Market Cap of

$7.0 billion

Purolator, Calgary

(1) Figures above are at H&R’s ownership interest including equity accounted investments.


Portfolio Diversification

By Segment

Fair Value of Investment Properties(1)

By Region

Ontario28%

United States40%

Other Canadian Provinces9%

Alberta23%

$14.1 Billion

Office43%

Industrial7%

Residential 20%

Retail30%

$14.1 Billion

(1) Includes H&R’s proportionate share of equity accounted investments.


Office Portfolio

Total value: $6.0 billion (weighted average cap rate: 5.57%) Average remaining lease term to maturity: 12.7 years Occupancy: 98.3%; committed occupancy: 99.5% Revenue from tenants with investment grade ratings: 86.3%

Hess Tower | HoustonCorus Quay | Toronto310-320-330 Front St.| Toronto 2 Gotham Centre | New York

Ontario Alberta Other SubtotalNumber of properties 19 4 4 27 6 33 Square feet (in thousands) 5,366 2,607 893 8,866 1,944 10,810 Fair value (in millions) $2,225 $1,731 $228 $4,184 $1,784 $5,968

UnitedStates

TotalCanada


Alberta Office Portfolio

(1) Same‐asset property operating income (cash basis) includes the proportionate share of equity accounted investments and excludes straight‐lining of contractual rent and realty taxes accounted for under IFRIC 21.

(2) Encana Corporation has sublet 27 floors to Cenovus Energy.

H&R’s office tenants in Alberta are some of the strongest companies in the energy sector with an average remaining lease term of 17.2 years

There are currently no vacancies in H&R’s Alberta Office Portfolio

Address CityTotal GLA

(Sq.Ft.)Ownership

Interest

GLA at H&R's

Interest

% of H&R's Same-Asset

Property Operating Income

(cash basis)(1)

Remaining Lease Term

(years) Major TenantS&P Tenant Credit Rating

5th Ave. at Centre St. Calgary 2,024,182 100% 2,024,182 14.2% 18.4 Encana Corporation(2) BBB Stable

450‐1st St., S.W. Calgary 931,187 50% 465,594 2.3% 11.6 TC Energy Corporation BBB+ Stable

2767‐2nd Ave. Calgary 69,793 100% 69,793 0.1% 19.4 AltaLink, L.P. A Stable

2611‐3rd Ave. Calgary 95,225 50% 47,613 0.1% 19.4 AltaLink, L.P. A Stable

Total / Average 3,120,387 2,607,182 16.7% 17.2


Retail Portfolio

Total value: $4.2 billion (weighted average cap rate: 6.31%) Average remaining lease term to maturity: 6.6 years Occupancy: 89.4%; committed occupancy: 93.8%

Dufferin Mall | TorontoOrchard Park | Kelowna Stone Road Mall | Guelph

Ontario Alberta Other Subtotal ECHO Other SubtotalNumber of properties 39 17 14 70 230 16 246 316 Square feet (in thousands) 3,726 4,000 2,800 10,526 3,143 219 3,362 13,888 Fair value (in millions) $1,133 $1,223 $881 $3,237 $875 $135 $1,010 $4,247

CanadaTotal

United States


Retail Portfolio

(1) Generally includes tenants occupying Commercial Retail Units (“CRU”) less than 15,000 square feet.(2) Reported as if Primaris owned 100% of these enclosed shopping centres.(3) Excluding Northland Village which is slated for redevelopment. (4) Rolling 12 months ended August 31, 2019

Enclosed Shopping

CentreGrocery

Anchored ECHO Other TotalNumber of properties 17 22 230 47 316 Square feet (in thousands) 7,062 1,008 3,143 2,675 13,888 Fair value (in millions) $2,565 $225 $875 $582 $4,247

Enclosed Shopping CentresAll Store CRU Sales(1) 2015 2016 2017 2018 2019(4)

British Columbia $614 $649 $653 $668 $659Alberta 568 530 531 520 514Manitoba 479 511 509 515 501Ontario 542 552 575 574 567Québec 415 423 431 428 432New Brunswick 523 530 516 517 513Total(2)(3) $539 $538 $545 $544 $537CRU square feet (in thousands) 2,483 2,412 2,411 2,381 2,287


Industrial Portfolio

Total value: $1.0 billion (weighted average cap rate: 5.70%) Average remaining lease term to maturity: 6.7 years Occupancy: 96.5%; committed occupancy: 97.2%

Sleep Country | GTACanadian Tire | GTA(1) Includes H&R’s proportionate share of equity accounted investments.

H&R has a 50% ownership interest in 79 of the 87 properties through a joint venture partnership with PSP Investment Board and Crestpoint Real Estate Investments Ltd.

Ontario Alberta Other SubtotalNumber of properties 35 19 29 83 4 87 Square feet (in thousands) 4,462 2,030 2,012 8,504 673 9,177 Fair value (in millions) $560 $250 $156 $966 $33 $999

Canada UnitedStates Total(1)


144 Acres of Industrial Land – Caledon, ON To develop 2.7 million square feet

Three buildings: Construction commenced in June 2019 Total budget: $73.6M

Building 1 Building 2 Building 3Remaining

Land

Square Feet 342,821 105,133 77,875 Approx. 2.2M

Acres 17 5 5 117


Residential Portfolio

Total value: U.S. $2.2 Billion (weighted average cap rate: 4.78%)

Average age of properties: 6.4 years

During the nine months ended September 30, 2019, there were five properties (excluding Jackson Park) in lease‐up with a weighted average occupancy rate of 81.4%. For the three and nine months ended September 30, 2019, the properties in lease‐up contributed U.S. $2.5 million and U.S. $5.9 million, respectively, to property operating income (excluding non‐cash items) and they are expected to contribute U.S. $2.8 million for Q4 2019 and U.S. $13.5 million in 2020

Brandon Crossroads | Florida

Ambrosio | Texas

(1) Includes H&R’s proportionate share of equity accounted investments.

Texas FloridaNorth

CarolinaNew York Total(1)

Number of properties 11 7 5 1 24 Number of residential rental units 3,442 2,433 1,632 936 8,443 Fair value (in millions of U.S. dollars) 510 508 359 793 2,170


Strategy is to acquire or develop class A properties in U.S. Sun Belt cities where there is strong population and employment growth and to develop properties with partners in Gateway cities


Acquired June 13, 2019

Class A Units: 314

Year Built: 2018

Occupancy upon Acquisition: 94.3%

Purchase Price: U.S. $74,732,000

Purchase Price/Unit: $238,000

Average Rent: U.S. $1,571 per month

Rationale: New construction located in Orlando’s coveted I‐4 Tourism Corridor that is anchored by major employers and a $50B tourism industry.

2019 Acquisition: Lantower Grande Flats – Orlando, FL


Acquired July 31, 2019

Class A Units: 322

Year Built: 2019

Occupancy upon Acquisition: 47.2%

Purchase Price: U.S. $62,790,000

Purchase Price/Unit: $195,000

Average Rent: U.S. $1,357 per month

Rationale: New construction located near a major Charlotte employment center, University City (3 business parks with 75k jobs & UNC‐Charlotte).

2019 Acquisition: Lantower Garrison Park – Charlotte, NC


Jackson Park ‐ Long Island City, NY

RESIDENTIAL DEVELOPMENT

Location28-10, 28-30, 28-40 Jackson Ave., Long Island City, New York

# of units 1,871 Ownership interest 50%% occupied 94.3%Current avg. rent $67 psf


Jackson Park ‐ Long Island City, NY

Q1 Q2 Q3 YTD Annual AnnualProjected 2019 and 2020 Net Income and FFO 2019 2019 2019 2019 2019 2020(At H&R's ownership interest) (Actual) (Actual) (Actual) (Actual) (Projected)(1) (Projected)(1)

(in thousands of U.S. Dollars)Property operating income $4,464 $6,519 $7,075 $18,058 $25,131 $34,000Bank interest and charges (2,566) (2,980) (3,206) (8,752) (12,871) (16,476)Effective interest rate accretion (542) (542) (542) (1,626) (2,167) (1,589)Fair value adjustment on financial instruments and real estate assets (1,118) (2,600) (19,105) (22,823) (22,823) ‐Net income (loss) 238 397 (15,778) (15,143) (12,730) 15,935 Fair value adjustment on financial instruments and real estate assets 1,118 2,600 19,105 22,823 22,823 ‐Notional interest capitalization 283 72 ‐ 355 355 ‐FFO $1,639 $3,069 $3,327 $8,035 $10,448 $15,935

In September 2019, H&R, together with its partners, secured a U.S. $1.0 billion interest-only first mortgage for Jackson Park (U.S. $500.0 million, at H&R’s ownership interest) at a fixed rate of 3.25% for a 10-year term. Upon closing, Jackson Park’s existing U.S. $640.0 million construction facility was discharged and the outstanding balance prior to this refinancing was repaid

Jackson Park’s annualized unlevered yield on budgeted cost is expected to be 6.4%, an increase from the original expectation of 6.1%

With the new financing in place, the REIT’s levered yield on its expected net cash contribution of U.S. $30.8 million to Jackson Park is approximately 56.9%

(1) Projections have only been updated for the effect of the permanent financing secured in September 2019.


U.S. Properties Under Development

(1) Mixed use development consisting of 528 residential rental units, approximately 346,000 square of retail space and 136,000 square feet of office space.(2) 35‐storey residential tower consisting of 315 luxury residential rental units and 6,450 square feet of retail.(3) Total project spans 38.4 acres. Construction commenced in June 2018 on Phase 1 of this project which will consist of 172 residential rental units and 13,979 square feet of retail.

Construction commenced in March 2019 on Phase 2 of this project which will consist of 232 residential rental units. Future phases will be announced as further development information becomes available.

(4) 383 residential rental units. Close to major technology employers including Apple, IBM, Oracle and Samsung as well as the University of Texas at Austin and downtown Austin. (5) 7‐storey residential tower consisting of 263 residential rental units. Part of a larger master planned community and is adjacent to transit, Microsoft, Inc.’s headquarters, and future

light rail which is expected to be completed in 2024.(6) Acquired a leasehold interest to develop up to 670 residential rental units. Located within the heart of the I‐4 Tourism Corridor in Orlando and the site is a seven‐minute drive from

Walt Disney World. Construction of Phase 1 is expected to commence in Q1 2020 and will consist of 321 residential retail units. The budget figures above relate to Phase 1 only.(7) Excludes the right‐of‐use asset, which is a leasehold interest measured at an amount equal to the corresponding lease liability.(8) Development budget metrics have not been determined as at September 30, 2019.

(in thousands of U.S. Dollars)At H&R Ownership Interest

Development NameOwnership

InterestNumber of Acres

Total Development

BudgetProperties Under

Development

Costs Remaining to

Complete

Expected Yield

on Cost

Expected Completion

DateCurrent Developments:

River Landing, Miami, FL(1) 100.0% 8.1 $424,815 $317,590 $107,225 5.7% Q2 2020Shoreline, Long Beach, CA(2) 30.9% 0.9 70,096 21,249 48,847 6.2% Q2 2021Hercules Project (Phase 1), Hercules, CA(3) 31.7% 2.2 26,041 16,315 9,726 6.5% Q2 2020Hercules Project (Phase 2), Hercules, CA(3) 31.7% 2.8 31,186 8,019 23,167 6.6% Q1 2021The Pearl, Austin, TX(4) 33.3% 5.0 23,201 10,860 12,341 6.2% Q3 2020Esterra Park, Seattle, WA(5) 33.3% 1.1 31,859 12,294 19,565 6.0% Q1 2021

Total 20.1 $607,198 $386,327 $220,871

Future Developments:Sunrise, Orlando, FL(6)(7) 100.0% 24.0 57,854 558 57,296 6.1% Q2 2021Prosper, Dallas, TX(8) 100.0% 20.3 15,1202214 Bryan St., Dallas, TX(8) 100.0% 3.3 23,616Pinellas, Tampa, FL(8) 100.0% 8.4 6,257Hercules Project (Remaining Phases), Hercules, CA(3)(8) 31.7% 33.4 10,879

Total per the REIT's Proportionate Share (excluding ECHO) 109.5 $665,052 $442,757 $278,167


River Landing ‐ Miami, FL

Prime urban mixed-use development 528 residential rental units 346,000 sf of urban retail 136,000 sf of office

RESIDENTIAL DEVELOPMENT


River Landing ‐ Miami, FL

1,000 feet of waterfront on the Miami river Adjacent to the Health District Close proximity to downtown Miami

Major tenants: Publix, TJ Maxx, Hobby Lobby, Burlington, Ross, Old Navy

Construction has commenced and is expected to be completed in Q2 2020

Total cost of project: U.S. $424.8M

U.S. $317.6M cost spent at September 30, 2019

Unlevered return on cost: 5.7%


Shoreline Gateway ‐ Long Beach, CA

Land acquired July 16, 2018

H&R ownership: 30.9%

35-storey residential tower consisting of 315 residential rental units

6,450 sf of retail space

Development budget: U.S. $227.1M at 100% level

Construction commenced in November 2018 and construction financing of U.S. $132.0Mwas secured in December 2018, at 100% level

Will become the tallest residential tower in Long Beach with views overlooking the Pacific Ocean


Hercules Bayfront ‐ San Francisco, CA

H&R ownership: 31.7% 38.4 acres of land to be developed into a waterfront master planned community which will be surrounded by a future

intermodal transit centre Phase 1 known as “The Exchange at Bayfront” will consist of 172 residential rental units including lofts and townhomes

and 13,979 square feet of ground level retail Phase 1 construction commenced in June 2018, with a total development budget of U.S. $82.1M and construction

financing of U.S. $57.5M was secured in July 2018, both at 100% level


Hercules Bayfront ‐ San Francisco, CA

Phase 2, known as “The Grand at Bayfront” will consist of 232 residential rental units including a state-of-the-art fitness centre, bike shop, residents lounge and sporting club.

Phase 2 construction commenced in March 2019, with a total development budget of U.S. $98.4 million and construction financing of U.S. $65.4 million was secured in March 2019, both at the 100% level.


The Pearl ‐ Austin, TX


383 residential rental units


Construction commenced in October 2018 and construction financing of U.S. $47.9M was secured in October 2018, at 100% level

This residential development site is close to major technology employers including Apple, IBM, Oracle and Samsung, as well as the University of Texas at Austin and downtown Austin


Esterra Park ‐ Seattle, WA

This residential development site is part of a larger master planned community and is adjacent to Microsoft, Inc.’s headquarters, bus transit and future light rail which is expected to be completed in 2024


263 residential rental units


Construction commenced in November 2018 and construction financing of U.S. $66.5M was secured in October 2018, at 100% level


Future Intensification Opportunities

Office Opportunities: 3777 Kingsway, Burnaby, BC 145 Wellington Street, Toronto, ON 55 Yonge Street, Toronto, ON

Retail Opportunities: Dufferin Mall, Toronto, ON Grant Park, Winnipeg, MB Kildonan Place, Winnipeg, MB Northland Village, Calgary, AB Orchard Park Shopping Centre, Kelowna, BC Place d’Orleans, Orleans, ON Sunridge Mall, Calgary, AB


Top 15 Tenants by Revenue

Predictable and stable income from long-term leases with high quality investment grade tenants

(1) Includes the proportionate share of equity accounted investments.(2) The percentage of rentals from investment properties is based on estimated annualized gross revenue excluding straight‐lining of contractual rent, rent amortization of tenant inducements and

capital expenditure recoveries.(3) Average lease term to maturity is based on net rent.(4) Encana Corporation has sublet 27 floors to Cenovus Energy at The Bow located in Calgary, AB. Encana Corporation’s lease obligations expire on May 13, 2038.(5) Canadian Tire Corporation includes Canadian Tire, Mark’s, Sport Chek, Atmosphere and Sports Experts. (6) Lowe’s Companies, Inc. includes Rona.(7) Loblaw Companies Limited includes Loblaw, No Frills and Shoppers Drug Mart.(8) Due to the confidentiality under the tenant’s lease, the term is not disclosed.

(1)

Tenant

% of rental income from investment

properties(2) Number of

locationsH&R owned

sq.ft. (in 000’s)

Average lease term to maturity

(years)(3)Credit Ratings

(S&P)

Encana Corporation(4) 11.9% 1 1,997 18.6 BBB StableBell Canada 8.2 23 2,533 15.1 BBB+ StableHess Corporation 5.5 1 845 (8) BBB‐ StableNew York City Department of Health 3.9 1 660 11.1 AA StableGiant Eagle, Inc. 3.5 192 1,681 11.5 Not RatedCanadian Tire Corporation(5) 2.7 21 2,626 6.6 BBB+ StableTC Energy Corporation 1.9 1 466 11.6 BBB+ StableLowe's Companies, Inc.(6) 1.8 15 1,750 11.9 BBB+ StableCorus Entertainment Inc. 1.8 1 472 13.5 BB NegativeTelus Communications 1.3 17 356 5.7 BBB+ StableShell Oil Products 1.3 17 223 2.8 AA‐ StablePublic Works and Government Services, Canada 1.0 5 316 4.3 AAA StableToronto-Dominion Bank 1.0 7 286 7.3 AA‐ StableLoblaw Companies Limited(7) 1.0 19 273 9.0 BBB StableRoyal Bank of Canada 0.9 5 247 5.6 AA‐ Stable

47.7% 326 14,731 12.2


27 204 159 276 683 451

2019 2020 2021 2022 2023 2024

Industrial

Retail

Office

203

1,488 1,586 2,130

995

2,278

2019 2020 2021 2022 2023 2024

Industrial

Retail

Office

Limited Lease Rollover

(1) Includes the proportionate share of equity accounted investments and excludes residential properties.(2) For the balance of the year.

Low‐risk rollover schedule Well diversified by property and geography Average remaining lease term of 9.7 years, one of the longest in the industry

% of the REIT‘s GLA 1% 4% 5% 6% 3% 7%

Canadian Portfolio(in ‘000s sq.ft.)

U.S. Portfolio(in ‘000s sq.ft.)

% of the REIT’s GLA <1% 1% <1% 1% 2% 1%

(1)

(2)

(2)


Strong Balance Sheet

(1) Debt includes mortgages payable, debentures payable, unsecured term loans and lines of credit.

Interest Coverage

3.0x

BBB (High) Stable Trend by

DBRS

Unencumbered Assets $3.2B

WAIR(1)

3.9%WATM(1)

3.9 years

Available under Lines of Credit

$819M

Mortgages 29%Unsecured

Debentures 9% Unsecured Term Loans 5%

Lines of Credit2%

Unitholder's Equity and

Exchangeable Units 55%

Total Capitalization$13.6 Billion

46.2%

44.3%44.6% 44.6%

43.3%

40%

42%

44%

46%

48%

2015 2016 2017 2018 Q3 2019

Debt(1) to Total Assets


Acquisition & Disposition History(1)

(In Millions)

2019(2) 2018 2017 2016 Total

Acquisitions $206 $681 $561 $354 $1,802

Dispositions (923) (950) (431) (793) (3,097)

Net ($717) ($269) $130 ($439) ($1,295)

(1) Includes the proportionate share of equity accounted investments.(2) As at September 30, 2019.


Unencumbered Asset Coverage Ratio

Significant untapped debt capacity through 38 encumbered properties valued at ~$1.5B with mortgages of $228.3M; average loan to value 15.2%; weighted average remaining term to maturity 2.6 years

Proforma(1) Q3 2019 2018 2017 2016 2015

Unsecured Debentures (carrying value) $1,259,686 $1,259,686 $1,613,040 $1,749,650 $1,312,693 $1,297,420

Unsecured Term Loans 695,029 695,029 450,629 186,629 205,829 ‐

Unsecured Lines of Credit 245,722 4,882 5,750 208,713 166,089 165,499

Unsecured Debt $2,200,437 $1,959,597 $2,069,419 $2,144,992 $1,684,611 $1,462,919

Unencumbered Assets $3,873,070 $3,248,605 $3,438,151 $3,614,735 $2,968,480 $2,015,464

Coverage Ratio 1.76x 1.66x 1.66x 1.69x 1.76x 1.38x

(1) After repayment of U.S. $219.3 mortgage in November 2019.


Debenture Maturity Schedule

(1) Denominated as $125,000 U.S. dollar and bears interest at a rate equal to 3‐month London Interbank Offered Rate plus 79 basis points. The REIT entered into an interest rate swap on the Series P senior debentures to fix the interest rate at 3.67% per annum.

Unsecured Senior Debentures MaturityContractual

Interest RateFace Value

(000’s)Series P Senior Debentures(1) February 13, 2020 3.67% 165,000 Series F Senior Debentures March 2, 2020 4.45% 175,000 Series L Senior Debentures May 6, 2022 2.92% 325,000 Series O Senior Debentures January 23, 2023 3.42% 250,000 Series N Senior Debentures January 30, 2024 3.37% 350,000

3.45% $1,265,000


Summary

One of the largest REITs in Canada with a market cap of $7.0B

High quality real estate

Predictable income Creditworthy tenants Long‐term leases, with contractual rent escalations High, stable occupancy Minimal near term lease expiries and debt maturities

Development pipeline expected to create significant value and enhance cash flows

Solid balance sheet with a conservative payout ratio

Fully internalized and aligned management

CEO, founders and trustees own approximately6% of the REIT (including exchangeable units)

NAV per unit is $25.81(1)

Average annual return to unitholders since inception of 13%

(1) Refer to the September 30, 2019 MD&A for a detailed calculation.

STABILITY, SECURITY & GROWTH · 2020-03-12 · STABILITY, SECURITY & GROWTH through QUALITY,...

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Transcript of STABILITY, SECURITY & GROWTH · 2020-03-12 · STABILITY, SECURITY & GROWTH through QUALITY,...