1 * Th is marketing material relate to the distribution of units of the InvestPlus Real Estate Investment Trust under an offering memorandum and is incorporated into and form part of the offering memorandu m
Disclaimer The information contained herein is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from InvestPlus ● (the “Company”) and should not be made available to any other person or entity without the written consent of the Company. The material contained herein is for information purposes only and does not constitute an offer to sell nor a solicitation of an offer to buy the securities. An offer can only be made by the Offering Memorandum and the appropriate exemption documents being provided to prospective purchasers. This information is inherently limited in scope and does not contain all of the applicable terms, conditions, limitations and exclusions of the investments described herein. Prospective purchasers should read the Offering Memorandum before considering investment in this project. This material is in no way a complete description of the proposed investment and is in all respects subject to the provisions of the Offering Memorandum and the Declaration of Trust . The information contained herein is not to be relied upon; investors should rely on the information described in the Offering Memorandum. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, expressed or implied, may be made as to the accuracy or reliability of the information contained herein. The only representations and warranties made by the Company would be those contained in an Offering Memorandum and a definitive subscription agreement. The InvestPlus Real Estate Investment Trust. intends to make regular distributions of its available cash to Unitholder, such distributions may be reduced or suspended and are not guaranteed. These offerings may be subject to potential risks associated with the investment, including market, liquidity and investment return risk. Please consult the offering documents for further information regarding these potential risks. Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remain the same even if the value of the securities purchased declines. In order to be eligible for subscription in this Offering, individuals must satisfy the criteria required for investors as described in the Offering Memorandum. 2
History Based in Calgary, Alberta • Incorporated in 2004 • The York – 45 Suites Acquired MF & Commercial properties through Joint Ventures • & LPs Restructured into private InvestPlus REIT (IPR) in 2015 • Provides an opportunity to invest in a diversified portfolio of • multi-unit residential apartment and commercial buildings in western Canada 3
InvestPlus Transaction History ✓ 18 buildings ✓ 420 Rental suites The Luxemburg – 23 Suites + 7,000 sq-ft commercial ✓ 100,000 SF Commercial ✓ Over 250 Investors ✓ Transacted over $80M in assets ✓ Current assets in BC, AB & SK 4
InvestPlus REIT Portfolio ✓ $35.2mm in Assets ✓ 8 buildings ✓ 161Rental Units ✓ 64,000 Sq-ft Prince George (1 property ) Edmonton ( 4 properties) Commercial Calgary (2 properties) Saskatoon (1 property) ✓ 60/40 split MF to Commercial 5
SINCE THE INCEPTION OF REIT 6
Recent Purchase Purchase Dec 2015: $2,800,000 • Lease Expiry: December 2025 • Value Jan 1, 2019: $3,500,000 • Triple-Net Lease • Accretive – Additional free cash flow of • $31,600/year after distributions, debt, The Brunswick – 13,704 sq-ft Prince George, BC expenses and debt repayment based on current rents 7
Recent Purchase 17,900 sq-ft of commercial space, south • of Calgary Purchased Aug 8, 2017: $3,63M • 5-years left on lease • Valued Jan 1 2019: $3,850,000 • Triple-net lease • Accretive – Additional free cash flow of • $19,500/year after distributions, debt, expenses and debt repayment based on current rents 8
Recent Purchase 30,000 SF of prime commercial space in SK • Purchased Oct 10, 2017: $3.35M • Valued Jan 1 2019: $3,600,000 • National tenants • Accretive – Additional free cash flow of • $33,250/year after distributions, debt, expenses and debt repayment based on current rents 9
Strategy Target and acquire accretive Commercial and Multi-family properties where other public or private REITs don’t exploit due to size, lack of local presence or criteria. 10
FOCUSSED ON AN ASSET ALMOST INDEPENDENT OF THE MARKET 11
Industrial 12
Why are we focussed on Industrial • The rise of both: – Cannabis – E-Commerce 13
Why are we focussed on Industrial & commercial – E-Commerce Canada is trending right behind the US at about 8%. 14
Why are we focussed on Industrial & commercial – E-Commerce The rising popularity of online retail is driving an unprecedented need for more industrial space for • distribution and return centers across Canada. As one interviewee noted, “Industrial is the new retail.” The sector is seeing significant rental increases for the first time in years, and it’s expected that demand will exceed supply for the next few years. -PWC – Emerging Trends in Real Estate 2019 15
Calgary Industrial Fundamentals Net absorption suggests vacancies dropping and rates increasing pushing values up. 16
Saskatoon Industrial Fundamentals Like Calgary, net absorption suggests vacancies dropping and rates increasing pushing values up. Source: Colliers International – Q3 Report 17
Winnipeg Industrial Fundamentals 18
ASSETS UNDER CONSIDERATION 19
Assets Under Consideration Province: BC Asset Type: Industrial Building Features SF: 38,000 Roof: New Ceiling Height 16’ - 18’ Purchase: $3.5M 7% Cap Rate: 8 20
Assets Under Consideration Province: SK Asset Type: Industrial/ Retail Long-Term Lease back Building Features SF: 24,000 with 15.5 Acres Building Condition: Newer Purchase: $9,97M 7%+ Cap Rate: 8 21
Assets Under Consideration Province: AB Asset Type: Industrial/ Retail Long-Term Lease Building Features SF: 154,275 SF Access: Highway 16 & Anthony Henday Purchase: $19,6M 6.5% to 7% Cap Rate: 8 22
ALBERTA’S REAL ESTATE CYCLE 23
Demographic Drivers 1. Employment Trends/Job Creation 2a. Net Migration/Population Shifts 2b. Population Age 3. Vacancy Rates 4. Housing Construction/Starts 5. Critical Infrastructure Expansion 6. Transportation Improvements 7 . The Real Estate Ripple Effect Financial Drivers 1. ROI/Cash Flow Trend 2. Average Rent Trend 3. Property Taxes 4. Average Income Trend 3. Inflation 5. Gross Domestic Product (GDP) 6. More than One Employer in Region 7. Affordability Index Emotional Drivers 1. Number of Days on the Market 2. Areas of Gentrification and Revitalization 3. Number of new listings/ month 4. Number of sales/ month 24
The Offering 6.25% Annual distributions paid Target Yield 2019: quarterly Capital Appreciation: The growth of the unit values are tied to the value of all assets owned by the REIT. There is a potential for appreciation. DRIP: Distribution Reinvestment Plan available for all Classes and it earns an additional 3% bonus on distributions Liquidity: Quarterly Redemptions 1 25
The Offering Minimum Investment: $ 25,000 Tax deferred Plans: RRSP, RESP, RRIF, LIRA & TFSA Securities Offered: Class A & F Trust units Offering: $10,000,000 Offering Bases: Available by Offering Memorandum in compliance with NI 45-106 26
InvestPlus REIT Advantage Favorable Timing Low interest rates, attractive cap rates and anticipated economic up-turn in core target markets Distributions Quarterly Distributions 2 Diversified Portfolio Current Assets are located in BC, Alberta and Saskatchewan Existing Asset Base REIT has an asset base of $35.2 mm. 3 27
InvestPlus REIT Advantage Solid Track Record 20-year track record and 75 years of cumulative management experience Corporate Governance Experienced management team and Independent Board of Trustees. 28
InvestPlus REIT Apartments 29
InvestPlus REIT Commercial 30
Thank You Tel: (403) 663.8772 For Further Information, Toll Free: 1.877.663.8772 Please Contact : E-mail: info@investplusreit.com 31
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