Annual Meeting of Unitholders 2019 1
Caution Concerning Forward Looking Statements & Non-IFRS Financial Measures Certain information in this presentation and oral answers to questions may contain forward- looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information, and certain material factors or assumptions were applied in drawing conclusions or making forecasts or projections as reflected in the forward-looking information. Additional information about the material factors and risks that could cause actual results to differ materially from the conclusions, forecasts or projections in the forward-looking information presented herein is available in Plaza Retail REIT’s regulatory filings filed on SEDAR (www.sedar.com). This presentation contains certain Non-IFRS financial measures including FFO. Please refer to Plaza’s most recent Management’s Discussion & Analysis for a description of these non- IFRS measures and for a reconciliation of these non-IFRS measures to standardized IFRS measures. 2
Business of the Meeting Election of Trustees Appointment of Auditor 3
Why is Plaza Unique? Plaza focuses on per unit growth through accretive developments. 1 Plaza is fully internalized and able to develop new retail properties using in-house resources. Plaza 2 does not buy properties from 3 rd party developers or from related parties at low cap rates. Insiders hold a significant ownership position in Plaza. 3 Plaza relies on its entrepreneurial abilities to adapt to changing market conditions. 4 Plaza locks in consistent long-term returns by financing with long term debt, generally 5 4 matched to lease maturities.
Profile Existing Portfolio 278 properties Developer, redeveloper and owner of retail properties, focused on Ontario, Quebec and Atlantic Canada. ~ 8.2M square feet Strong relationships with leading retailers. Development Pipeline 16 year history of accretive growth and 27 projects value creation within the REIT through in-house development expertise. ~ 1.3M square feet Competitive advantage as a developer in Atlantic Canada. Occupancy Long-term financing strategy to lock-in returns. 96.3% Alignment of interests with internalized management and ~21% insider ownership. TSX: PLZ.UN Distribution: $0.28 Units Outstanding: 102.7 million Yield: ~6.7% 5 Recent Price (May 21, 2019): $4.19 ~13% Rate of Return CGAR since IPO in 1999 Market Cap: $432M Debt to GBV (ex converts): 51.8%
NOI by Province Q1 2019 9% 12% PEI Newfoundland 18% Nova Scotia 21% Québec 2% West 14% Ontario 24% 6 New Brunswick
Plaza’s Geography Q1 2019 West 8 Properties – 64,662 SF Ontario 70 Properties – 1,571,924 SF Quebec 97 Properties – 2,146,427 SF Atlantic 110 Properties – 4,391,871 SF 7
Plaza’s Portfolio Composition Q1 2019 110 Properties – 65.7% of Base Rent Strip National Single 91% Tenant 71 Properties – 19.2% of Base Rent Regional Retail 3% Local Single 4% Tenant 100 Properties – 8.0% of Base Rent Non-Retail QSR 2% Enclosed 4 Properties – 7.1% of Base Rent 8
Top Ten Tenants by Revenue – 55.7% Q1 2019 9
Redevelopment Successes 2018/2019 10
Redevelopment Success: SBT Chicoutimi, Chicoutimi, QC (former SEARS) 11
Redevelopment Success: SBT Chicoutimi, Chicoutimi, QC (former SEARS) 12
Redevelopment Success: SBT Chicoutimi, Chicoutimi, QC 13
Redevelopment Success: 1000 Islands Plaza, Brockville, ON 14
Redevelopment Success: 1000 Islands Plaza, Brockville, ON 15
Redevelopment Success: Granite Drive Plaza, New Minas, NS (former Future Shop) 16
Redevelopment Success: Granite Drive Plaza, New Minas, NS (new Dollarama) 17
Redevelopment Success: Granite Drive Plaza, New Minas, NS (new Easy Home & Winners expansion for Homesense) 18
Redevelopment Success: Torbram Road, Brampton, ON 19
Redevelopment Success: Torbram Road, Brampton, ON 20
Redevelopment Success: Torbram Road, Brampton, ON 21
Redevelopment Success: Lawrence Ave. East, Scarborough, ON 22
Redevelopment Success: Lawrence Ave. East, Scarborough, ON 23
Redevelopment Success: 6685 Century Ave., Mississauga, ON (future Movati Fitness) 24
Redevelopment Success: 6685 Century Ave., Mississauga, ON (future Movati Fitness) 25
Redevelopment Success: 6685 Century Ave., Mississauga, ON (future Movati Fitness) 26
Redevelopment Success: 1096 Wellington, Ottawa, ON 27
Redevelopment Success: 1096 Wellington, Ottawa, ON (Domino’s) 28
Development Successes 2018/2019 29
Development Success: Main Place, Fredericton, NB (A&W) 30
Development Success: Queens Place Drive, Liverpool, NS (Dollarama) 31
Development Success: Bedford Commons (Phase 1), Bedford, NS (BNS pad) 32
Development Success: The Shoppes at Galway, St. John’s, NL (Costco) 33
Development Success: The Shoppes at Galway, St. John’s, NL (Costco) 34
Development Success: The Shoppes at Galway, St. John’s, NL (Petsmart) 35
Development Success: The Shoppes at Galway, St. John’s, NL (Dollarama & Michaels) 36
Development Success: The Shoppes at Galway, St. John’s, NL (Marshalls & Homesense) 37
Development Success: Champlain Street Plaza (Phase II), Dieppe, NB (future Ren’s Pets) 38
Development Success: Champlain Street Plaza (Phase II), Dieppe, NB (future Ren’s Pets) 39
Development Success: Jean-Paul Perrault – Sherbrooke, QC 40
Development Success: Jean-Paul Perrault – Sherbrooke, QC (future SAIL) 41
Development Success: Plaza des Laurentides, St-Jérôme, QC (future Princess Auto) 42
Development Success: Plaza des Laurentides, St-Jérôme, QC (future Princess Auto) 43
Development Success: Plaza des Laurentides, St-Jérôme, QC (future Princess Auto) 44
Ecommerce Ecommerce and retail can be looked at through 3 distinct categories: Businesses that cannot be carried out on-line: hair salons, restaurants, treasure hunt retail, $ stores and 1 various specialty retail. These business are not impacted by on-line commerce. Businesses that function best with an omni-channel strategy that combines Ecommerce with physical 2 stores: sporting goods, fashion, electronics, pets, décor, financial services, general merchandise stores. Businesses that function without physical stores: music, film, television show downloads. 3 45
Ecommerce Media attention around retailer woes. Canadian retailers are facing a variety of serious challenges: fierce competition, outdated business models, lack of execution, Ecommerce and changing trends in retail properties. Success and growth will come from both on-line sales and bricks and mortar retail. Ecommerce creates change and opportunity; Plaza is well-positioned to take advantage of changing demand and formats for retail stores. 46
Ecommerce Many of the reasons for the exit by investors from retail REITs are not relevant to Plaza. Plaza’s properties are smaller and very community centric, attracting customers on a regular basis as they conduct their pre and post work routines. Plaza’s tenant line-up features value, specialty and necessity based retailers that require a local physical presence. 47
Revenue by Retail Category 70-75% Ecommerce Resistant Treasure Fashion 4% Banking/ Financial 4% Home Décor & Furniture Fashion Dollar Stores 4% 6% 6% Grocery / Liquor 7% Pet 3% Other Specialty Retail 5% 13% Restaurant / Entertainment Pharmacy / Medical 17% 31% 48
Investment Highlights Unique positioning as a developer and value creation REIT. Leveraging competitive advantage in Atlantic Canada. Focus on value, convenience and specialty retail. Stable, high occupancy with national tenants comprising ~91% of revenue. Superior returns through property development. Long-term financing strategy to lock-in returns. Alignment of interests with internalized management and ~21% insider ownership. 49
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