INVESTOR PRESENTATION August 2020 INVESTOR PRESENTATION August 2020
Disclaimer About this Presentation This presentation is dated August 12, 2020 and is strictly intended to provide general information about PRO Real Estate Investment Trust (“PROREIT”) and its business. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of PROREIT. The information in this presentation is stated as at June 30, 2020, unless otherwise indicated. Non-IFRS Measures PROREIT’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this presentation, as a complement to results provided in accordance with IFRS, PROREIT discloses and discusses certain non - IFRS financial measures, including Adjusted Funds From Operations (“AFFO”), Funds From Operations (“FFO”), Gross Book Value (“Gross Book Value”), Debt to Gross Book Value (“Debt to Gross Book Value”), Net Operating Income (“NOI”), interest coverage ratio and payout ratios as well as other measures discussed elsewhere in this presentation. These non - IFRS measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. PROREIT has presented such non - IFRS measures as Management believes they are relevant measures of PROREIT’s underlying operating performance and debt management. Non - IFRS measures should not be considered as alternatives to net income, cash generated from (utilized in) operating activities or comparable metrics determined in accordance with IFRS as indicators of PROREIT’s performance, liquidity, cash flow, and profitability. For a full description of these measures and, where applicable, a reconciliation to the most directly comparable measure calculated in accordance with IFRS, please refer to the “Non - IFRS and Operational Key Performance Indicators” section in PROREIT’s Management’s Discussion and Analysis for the quarter ended June 30, 2020 available on SEDAR at www.sedar.com. Forward-Looking Information Certain statements contained in this presentation constitute forward - looking information within the meaning of applicable securities laws. In some cases, forward - looking information can be identified by such terms such as “may”, “might”, “will”, “could”, “should”, “would”, “occur”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue”, “likely”, “schedule”, or the negative thereof or other similar expressions concerning matters that are not historical facts. Some of the specific forward - looking statements in this presentation include, but are not limited to, statements with respect to PROREIT’s future financial performance; the ability of PROREIT to execute its growth strategies; and PROREIT’s ability to continue paying monthly distributions and PROREIT’s ability to raise capital. Forward - looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond PROREIT’s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward - looking statements. PROREIT’s objectives and forward - looking statements are based on certain assumptions, including that (i) PROREIT will receive financing on favourable terms; (ii) the future level of indebtedness of PROREIT and its future growth potential will remain consistent with PROREIT’s current expectations; (iii) there will be no changes to tax laws adversely affecting PROREIT’s financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on PROREIT’s operations, including its financing capacity and asset value, will remain consistent with PROREIT’s current expectations; (v) the performance of PROREIT’s investments in Canada will proceed on a basis consistent with PROREIT’s current expectations; and (vi) capital markets will provide PROREIT with readily available access to equity and/or debt. Additional information about these assumptions and risks and uncertainties is contained under “Risk Factors” in PROREIT’s latest annual information form, and in other filings that PROREIT has made and may make with applicable securities authorities in the future, all of which are or will be available on SEDAR at www.sedar.com. The forward - looking statements contained in this presentation are expressly qualified in their entirety by this cautionary statement. Investors are cautioned not to put undue reliance on forward - looking statements. All forward - looking statements in this presentation are made as of the date of this presentation. PROREIT does not undertake to update any such forward - looking information whether as a result of new information, future events or otherwise, except as required by law. Additional Information Information appearing in this presentation is a select summary of PROREIT’s business, operations and results. The latest annual information form of PROREIT and its consolidated financial statements and management’s discussion and analysis thereon for the quarter ended June 30, 2020 are available on SEDAR at www.sedar.com. INVESTOR PRESENTATION 2 August 2020
BUILDING A MID-CAP DIVERSIFIED COMMERCIAL REIT IN CANADA INVESTOR INVESTOR PRESENTATION PRESENTATION 3 August 2020 August 2020
Section 1. PROREIT AT A GLANCE Section 2. PROVEN EXECUTION Section 3. 2020 SECOND QUARTER PERFORMANCE Section 4. POSITIONED FOR GROWTH Section 5. APPENDICES INVESTOR INVESTOR PRESENTATION PRESENTATION 4 August 2020 August 2020
SECTION 1. PROREIT AT A GLANCE INVESTOR INVESTOR PRESENTATION PRESENTATION 5 August 2020 August 2020
About PROREIT Quick Facts Established in 2013, PROREIT owns $646 million of diversified commercial real estate properties in Canada, representing (As at August 12, 2020) close to 4.6 million square feet of gross leasable area. PROREIT is Ticker Symbol (TSX) mainly focused on strong secondary markets in Québec, Atlantic PRV.UN Canada and Ontario, with selective exposure in Western Canada. Tax Deferred Distribution 100% (estimated) DRIP Eligible 93 3% bonus units (suspended) Monthly Distributions PROPERTIES $0.45 on an annualized basis IN 9 PROVINCES Revenue by Asset Class (3 months ended June 30, 2020) Retail 31.0% BC: 5 Industrial 29.2% AB: 11 MB: 6 PEI: 1 SK: 4 Office 18.1% ON: 12 QC: 16 Commercial NB: 23 NS: 15 Mixed-use 21.7% INVESTOR PRESENTATION 6 6 August 2020
Our Vision To become a mid-cap diversified Canadian REIT with high-quality commercial real estate in specific segments of the industrial, retail, commercial mixed-use and office sectors, recognized for its ability to: PRODUCE GROW STABLE AND GROWING UNITHOLDER VALUE RETURNS PER UNIT WITH A CLEAR STRATEGY TO GROW FFO AND NAV INVESTOR PRESENTATION 7 August 2020
Strong Performance in COVID-19 Environment 98.5% 87% of gross rent collected of tenant base in July 2020, including are national and over 97% for retail government tenants tenants 76% 67% of leases maturing of retail base rent comes in 2020 renewed with from grocery stores, 2% average annual pharmacies, financial rent increase institutions, government and medical offices INVESTOR PRESENTATION 8 August 2020
SECTION 2. PROVEN EXECUTION INVESTOR INVESTOR PRESENTATION PRESENTATION 9 August 2020 August 2020
Our Growth History A BREAKOUT YEAR PROREIT CREATION BY FORMER CANMARC ► Internalization of asset MANAGEMENT FOCUSED ► Achieved management ON THE ► One $6M property, $500M ► Graduation FUTURE 397K sq. ft. GLA asset target to TSX ► TSX-V listing ► 84 properties, ► 32 properties, ► 66 properties, ► 93 properties, ► Consolidation (PRV.UN) 3.7M sq. ft. GLA 4.6M sq. ft. GLA 1.7M sq. ft. GLA 2.7M sq. ft. GLA of Units 3:1 2013 2014 2015 2016 2017 2018 2019 2020 ► 23 properties, ► 39 properties, ► $69.1M in ► 92 properties, ► Acquisition of 1.0M sq. ft. GLA 2.0M sq. ft. GLA new equity 4.4M sq. ft. GLA light industrial capital raised ► Acquisitions property in of 7 properties Moncton, NB, ► Acquisition for $97.8M PROREIT has for $8.4M of property ► $57.6M equity management consistently paid offering platform attractive distributions every month, since January 2014 INVESTOR PRESENTATION 10 August 2020
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