COMINAR REAL ESTATE INVESTMENT TRUST COMINAR REAL ESTATE INVESTMENT TRUST QUARTER ENDED MARCH 31, 2016 CONFERENCE CALL MAY 5, 2016

Transcription

1 COMINAR REAL ESTATE COMINAR REAL ESTATE QUARTER ENDED MARCH 31, 2016 CONFERENCE CALL MAY 5,

2 FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements with respect to Cominar and its operations, strategy, financial performance and financial condition. The actual results and performance of Cominar discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulation and the factors described under Risk Factors in the Annual Information Form of Cominar. The cautionary statements qualify all forward-looking statements attributable to Cominar and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this presentation. Cominar does not assume any obligation to update the forward-looking statements except as required by applicable laws. Net operating income, funds from operations, adjusted funds from operations and proportionate share in joint ventures adjustments are non-ifrs measures and do not have a standardized meaning. Therefore, they may differ from similar measures presented by other entities and, consequently, may not be comparable to similar measures presented by such other entities. For a reconciliation with the closest IFRS measures, please see our MD&A for the quarter ended March 31,

3 January 29, 2016 Portfolio of 10 retail properties $15.2M Capitalization rate of 6.7% Net sales proceeds used to pay down our debt and repurchase units under the Normal Course Issuer Bid (NCIB) March 31, 2016 Portfolio of 14 retail properties $56.5M Capitalization rate of 7.1% Net sales proceeds used to pay down our debt and repurchase units under the Normal Course Issuer Bid (NCIB) Q DISPOSITIONS SUBSEQUENT EVENT May 2, 2016 Portfolio of 5 retail properties $39.5M Capitalization rate of 7.0% Net sales proceeds used to pay down our debt 3

4 Dispositions September 2015 Portfolio of 3 office and industrial properties January 2016 Portfolio of 10 retail properties March 2016 Portfolio of 14 retail properties May 2016 Portfolio of 5 retail properties Dispositions realized to date Additional property sales to come Total $98.0M $15.2M $56.5M $39.5M $209.2M $200.0M $409.2M 4

5 Operating revenues Financial statements - 3.5% Operating revenues Cominar s proportionate share 1-3.5% Net operating income 1 Financial statements - 4.5% Net operating income 1 Cominar s proportionate share - 4.3% Net operating income 1 Same property portfolio - 2.7% Cash flows provided by operating activities % Recurring funds from operations 1-4.4% Recurring funds from operations per unit (FD) $ Recurring adjusted funds from operations 1-4.3% Recurring adjusted funds from operations per unit (FD) $ Distributions per unit $ Total assets of 8.2B$ + 0.4% Debt ratio 54.2% Interest coverage ratio 2.67:1 Occupancy rate 92.5% Growth in average minimum rent of renewed leases 0.9% 1 Non-IFRS financial measure 2 Fully diluted 5

6 Renewed 30.9% of leases maturing in 2016 Increase in the average minimum rent of renewed leases of 0.9% Signed new leases representing 1.7M sq. ft. Average remaining lease term of 4.4 years OCCUPANCY RATES Operating segment (%) Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q Office Retail Industrial and mixed-use Total portfolio

7 155 Fortin street Québec City 47,500 sq. ft. industrial property 30% leased up Delivery Q Espace Bouvier Québec City 103,000 sq. ft. office and retail properties under development Cominar s proportionate share 50% 2 buildings under construction: 52% leased up Estimated costs: $15.1M Estimated capitalization rate: 8.8% Delivery Q2 and Q

8 3055 Saint-Martin Laval 118,000 sq. ft. office property under development Part of the Centropolis complex 60% leased up Estimated capitalization rate: 7.1% Estimated costs of the project: $30.7M Delivery Q Louis B.-Mayer street Laval 130,000 sq. ft. industrial property 100% leased up to a single tenant Estimated capitalization rate: 8.7% Estimated costs of the project: $14.9M Delivery Q

9 Location Leasable area sq. ft. Actual situation Les Rivières 83,100 Lease signed with Rona (Réno Dépôt) for 67% of the area, beginning in late Q Carrefour Saint-Georges 84,900 Leases signed with Metro (Super C) and Surplus RD for 100% of the area, beginning in Q Place Longueuil 79,400 Meaningful discussions with a potential client for 100% of the leasable area St-John s 107,400 To be leased Centre Laval 132,800 Discussions with potential clients for a significant part of the leasable area Alexis Nihon 107,600 Lease acquired by Canadian Tire Carrefour Rimouski 93,000 Lease acquired by Canadian Tire Total 688,200 On a total leasable area of 688,200 square feet previously occupied by Target, 420,900 square feet (61%) were assumed by Canadian Tire or already leased, or in meaningful discussions. 9

10 COMINAR S PROPORTIONATE SHARE BY GEOGRAPHICAL MARKET BY MARKET SEGMENT 10

11 (in $M, except per unit amounts) For the quarters ended March % Operating revenues Cominar s proportionate share (3.5) Net operating income 1 Cominar s proportionate share (4.3) Same property net operating income (2.7) Recurring funds from operations per unit (FD) (4.4) (7.0) Recurring adjusted funds from operations (4.3) per unit (FD) (7.9) Distributions per unit (0.6) 1 Non-IFRS financial measure 2 Fully diluted 11

12 NET OPERATING For the quarters ended March % Same property portfolio Financial statements Same property portfolio Joint ventures Same property portfolio Cominar s proportionate share Acquisitions, developments and dispositions Financial statements Acquisitions and developments Joint ventures 110,131 1, ,394 3, ,249 1, ,435 5,817 (2.8) 6.5 (2.7) (39.2) Net operating income Cominar s proportionate share 115, ,252 (4.3) SEGMENT NET OPERATING For the quarters ended March % Operating segment Office 48,272 52,111 (7.4) Retail 42,920 45,297 (5.2) Industrial and mixed-use 23,861 22, Net operating income Cominar s proportionate share 115, ,252 (4.3) SAME PROPERTY NET OPERATING For the quarters ended March % Operating segment Office 47,588 49,182 (3.2) Retail 41,530 43,270 (4.0) Industrial and mixed-use 22,276 21,983 1,3 Same property portfolio net operating income Cominar s proportionate share 111, ,435 (2.7) 12

13 New Mortages contracted for $119.9M Weighted average contractual rate: 3.40% Weighted average term: 10 years Normal course issuer bid (NCIB) Since the beginning of the program, repurchase of 3,248,232 units at $14.94 for $48.5M Repurchase of 2,717,396 units for a total consideration of $40.8M in Q Suspension of distribution reinvestment plan (DRIP) on January 20,

14 Debts Debt ratio of 54.2% (53.9% as of today and 53.9% as at December 31, 2015) Annualized interest coverage ratio of 2.67:1 Weighted average interest rate : 4.08% (4.09% as at December 31, 2015) Residual weighted average term: 4.4 years (4.5 years as at December 31, 2015) Senior unsecured debts-to-total debt ratio of 52.9% (53.6% as at December 31, 2015) Unencumbered assets stand at $3.5B representing 1.48x senior unsecured indebtedness outstanding (1.30x covenant level) Credit facility Liquidity available as at March 31, 2016 of $341.4M 14

15 (in $M) March 31, 2016 December 31, 2015 Total assets 8, ,225.7 Mortgages payable 2, ,061.2 Debentures 1, ,995.5 Bank borrowings Unitholders equity 3, ,

16 SOLID BASE DIVERSIFICATION OF CLIENTS GÉOGRAPHIQUE ET SECTORIELLE FINANCIAL STABILITY FURTHER STRENGTHENED BY OUR OVERALL DEBT MANAGEMENT STRATEGY STRONG AND EXPERIENCED TEAM MARKET KNOWLEDGE COMPLEMENTARY EXPERTISE BBB (LOW) CREDIT RATING FROM DBRS STRATEGY RECYCLING OF CAPITAL INTEGRATED MANAGEMENT SYNERGIES OPERATIONAL EFFICIENCY DIVERSIFICATION SEGMENT AND GEOGRAPHICAL 16