ICM Property Partners Trust Deliberately Private. Deliberately Alternative. 1
ICM History and Track Record Exempt Market Presentation Q2 2019 2 Carnegie Point – ICM property located in Charlotte, NC
Value. ICM Asset Management ICM Asset Management is a registered alternative investment fund Discipline. manager (IFM) and portfolio manager (PM) focused on owning, operating and investing in real assets. We offer retail, private client Results. and institutional investors an array of investment opportunities focused on real estate, private equity, private debt and infrastructure strategies. We are headquartered in Calgary and have offices in Atlanta, Munich and Mexico City. Our goals are simple: We strive to preserve wealth and generate attractive risk-adjusted returns, while providing the highest level of client service. $815M 16 6,000 99% 0 Years in Assets Under Investment Clients Investor Retention Management Business Losses 3
ICM Team Bruce Timm Founder and CEO 30+ years of real estate investment management John Courtliff Spencer Patton Scott Myers Spencer Coupland Partner, Managing Managing Director Managing Director Partner, Managing Director & Portfolio U.S. Latin America Director & Manager General Counsel 25+ years of real estate 25+ years of real estate investment management investment management 12+ years of investment 17+ years of corporate and and real estate fund securities legal experience management David Vankka Jon Leavitt Heather Streeton Greg Condon Partner, Managing Managing Director Controller Vice President Property Operations Director & Portfolio Asset Management 5+ years of accounting and Manager audit experience 25+ years of real estate 20+ years of real estate experience investment management 25+ years of investment banking and capital markets experience 4
FIRST OPEN ICM History & AUM Growth ENDED FUND ICM Property Partners Trust AWARD WINNER is launched as ICM’s fifth Canadian offering and first 900 MM open ended real estate fund ICM (IX) Real Estate Trust wins the 2018 PCMA Cross Border Real Estate Award 800 MM AWARD WINNER 700 MM ICM (VII) U.S. Core Plus Realty Trust wins the 2016 PCMA Commercial Real ICM REDUCES 600 MM Estate Award LEVERAGE ICM MOVES ICM FORMED Taking advantage of record 500 MM high real estate prices ICM FIRST CANADIAN ICM moves its headquarters disposes of noncore assets Founded with German from Munich, Germany to and positions the firm well Capital investing in FUND Calgary, Alberta and begins to weather what would be North American real 400 MM positioning the firm for the 2008 Financial Crisis ICM launches its first fund estate growth for Canadian investors – ICM VI Realty Trust 300 MM 200 MM In addition to AUM growth, ICM has distributed over $130 M to investors 100 MM 0 MM 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2019 German Client Capital Canadian Client Capital 5
ICM Historical Outperformance ICM Equal Weighted Composite ICM Equal Weighted Composite vs. NAREIT and S&P 500 Total Return vs. Real Estate Mutual Fund Peers Total Return on $100,000 Initial Investment 3-Year Performance Ending December 2017 10.00% $548,567 Higher Return Lower Volatility 11.6% 9.00% 11.6% $449,663 8.00% 10.2% 7.00% Annualized Return $328,483 6.00% 8.0% Peer Average 5.00% 4.00% 3.00% 2.00% 1.00% 2018 0.00% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Standard Deviation Annualized Note 1 6
Alternatives: Institutions leading, rest beginning to follow Proportion of Institutional Investors Alternative Exposure Allocating to each Alternative Asset Class Real Estate Private Equity Private Debt Individual Investors 5% 59% 58% 37% Canadian Pensions 41% Infrastructure Hedge Funds Natural Resources U.S. Endowments 52% 36% 50% 40% U.S. Pensions 28% Chart 1, Note 2 Chart 2 7
Diversification: Institutional Real Estate Portfolios AimCo 2 PSP Investments 3 CPPIB 1 ($12.7 B) ($20.6 B) ($36.7 B) Private real estate debt Private real estate Multi-Family 9.4% 10.0% By Investment Type debt 3.2% Multi- Retail Industrial Retail Family 15.0% 10.0% Retail 28.3% 10.7% Multi- 35.1% Family 31.4% Mixed Use 3.4% Fund 14.8% Office Development 29.2% 10.6% Office Mixed Use Industrial 22.9% 5.0% Industrial 16.2% 14.1% Office 30.7% Europe Australia Australia 3.8% Other Latin 11% 11.7% Canada 9.0% Canada America 11.8% 20.7% 1% Other By Country 0.7% Europe United 20.7% States 13% United States Europe United 36.1% 25.0% Asia States 3.8% Canada Asia 42.7% Latin America 75% 11.3% 3.4% Note 2 8
Investment Highlights ICM Property Partners Trust aims to • Approved and available through Aligned since November 2018 (Fundserv Codes: preserve capital, deliver income and ICA100F; ICA100I) achieve strong growth through diversified • Fund currently has exposure to projects with a total value of $400+ million • Maintain a control position in every real estate equity investment we make and tactical allocations to exclusive real • Multi-strategy fund focused on active value creation strategies in real estate estate opportunities in investment grade • Multi-country, market, asset type, investment type and currency Depth of knowledge and local presence in our markets combined with breadth gives us markets across North America unique insights when assessing opportunities in our markets 9 ICM Head Office – ICM property located in Calgary, AB
The Offering Growth and income from direct investments in commercial real estate debt and equity Growth & Income Quarterly Total Target Quarterly Distribution Target Return distributions while 5 - 7% 9 - 12% your investment per annum* per annum* grows Realize value for investors through disposing of or refinancing assets and recycling capital Execute business plans and add value to assets Acquire quality assets in proven markets * Depending on the series of unit and DRIP strategy selected. 10
True Diversification in Direct Private Real Estate by Country Canada, U.S.A. and Mexico by Market “When we add an asset to Atlanta, Dallas, Charlotte, Nashville, Minneapolis, Calgary, our portfolio, that asset Edmonton, Mexico City, Guadalajara, Monterey, etc. represents what we believe by Asset Type to be the best opportunity across every North Office, Industrial, Retail, Multifamily and Hotel American market in which by Investment Type we are active.” Core Plus, Value-add, Opportunistic and High Yield Lending by Currency CAD, USD and MXN 8 West – ICM property located in Calgary, AB 11
Investment Strategies ICM has identified five investment strategies that it believes will outperform in the current environment 12 Two Bethesda – ICM property located in Bethesda, MD
Investment Strategies Targeted Underwritten Target Hold Investment Strategy Per Annum Investment Period Why ICM is pursuing this strategy: Returns* per Asset Strong growth. Better value. U.S. Income Growth 12.0 – 14.0% 4 – 6 years Reduced pricing risk. Strong Occupancy. Rising Rents. U.S. Development 18.0 – 24.0% 3 – 5 years Build to Lower Cost Base. Favourable Capital Stack Position. Canadian Mezzanine Debt 12.0 – 14.0% 2 – 3 years Equity-Like Returns. Strong Operational Capability. Canadian Opportunistic 16.0 – 24.0% 2 – 4 years Reduced Pricing Risk. Demographic and Economic Tailwinds. Market 18.0 – 20.0% Mexican Opportunistic 4 – 6 years Inefficiency. High Unleveraged Returns. (unleveraged) * Projected IRR is based on the return earned by the Trust on the investment it makes in such project, not the return ultimately achieved by the investors in the Trust. The projected returns are subject to costs such as commissions, management fees and operating costs which are paid before distributions are made to investors. Investors receive their blended IRR from the returns earned by the Trust on all of the investments in the portfolio less all of the Trust’s costs as noted above. 13
U.S. INCOME GROWTH STRATEGY Acquire existing U.S. properties in investment grade secondary markets Ex. Atlanta, Charlotte, Dallas, Nashville, Minneapolis Secure underperforming assets that present opportunities for meaningful income growth through active management strategies 14
U.S. Income Growth Strategy Secondary markets in the U.S. have experienced less cap rate compression than primary cities 4 Ability to acquire same credit tenant mix at a more attractive valuation when compared to primary markets Select secondary markets are poised for strong economic growth 5 Seek opportunities where ICM’s active management philosophy will lead to improvement in underlying property performance Carnegie Point – ICM property located in Charlotte, NC 15
U.S. DEVELOPMENT STRATEGY Partner with strong regional developers in U.S. growth markets Deliver properties at a far more attractive cost basis compared to buying newly built properties Deliver exceptional new projects with the potential to earn strong income Spartan Ridge – ICM property located in Spartanburg, SC 16
Recommend
More recommend
