Investor Presentation June 201 4 Randy Cameron John Todd Chief Executive Officer Chief Financial Officer 970 Fraser D Drive, Burlington – Single Tenant
Investing in Dream Industrial REIT: • Participation in strong industrial fundamentals in Canada Canadian GDP growth for 2014/15 projected to be 2% to 3% • Multi-tenant focus and geographic diversification Portfolio is 2/3 multi-tenant which offers greater rent growth opportunities • Rent growth opportunities Market rents are 6% above in-place and growing • Established platform, including relationship with Dream 80 dedicated staff; access to Dream network and expertise • Secure and stable distribution 89% payout ratio; 52.4% leverage; current yield > 7% 2
DIR.UN at-a-glance Our Portfolio Distribution & Asset Classification 15.6 M 68% by % of Net Operating Income from Multi- square feet March 31, 2014 GLA tenant 205 $1.5 B Properties Total assets AB 30 % SK 6 % ON QC 28 % 18 % From IPO in October 2012 to May 2013, we grew NS our asset base from $0.7 billion to $1.5 billion, 18 % diversifying our portfolio across major Multi-tenant Canadian industrial markets. Single-tenant 3
DIR.UN at-a-glance Our focus since May 2013: Q3-2013 Operations and internal growth (first full quarter at • Q1-2014 current size) √ Occupancy 96.3% 95.1%. Tenant relationships • Comparative √ $ 26.5 M $ 26.3 M NOI Proactive property management • √ AFFO/unit $ 0.19 $ 0.20 AFFO Payout Growing occupancy • √ 89% 91% ratio Leverage 52.4% 52.5% √ Processes and people • 4
Results RESULTS: AFFO and Distributions $0.25 1 60% 1 40% $0.20 1 20% 1 00% $0.1 5 80% AFFO/unit $0.1 0 60% Distributions 40% Payout ratio % $0.05 20% $0.00 0% Q4-1 2 Q1 -1 3 Q2-1 3 Q3-1 3 Q4-1 3 Q1 -1 4 Since our IPO w e’ve grown our AFFO/unit and distributions, while reducing our payout ratio 5
Multi-tenant focus means faster rent growth and lower tenant concentration risk 6
Multi-tenant focus Net Operating Income by segment (Q1 2014) Weighted average Weighted average lease term 6.3 yrs. lease term 3.6 yrs. Market rents Market rents approx. 4.0% above approx. 7.0% above in-place in-place 32% 68% Single-tenant Multi-tenant Shorter lease term allows to capture the rent uplift faster 7
Multi-tenant focus Benefits of multi tenant & smaller bay size assets • Space is less specialized -> larger variety of uses • Shorter lease terms provide greater opportunity to participate in rent growth • High replacement cost relative to single-tenant assets – rents in most markets do not support new construction • Lack of recent new multi-tenant supply construction assets in Canada • Our portfolio is mainly located in urban infill locations Our portfolio includes over 1,000 tenants of 5,000 square feet or less 8
These multi-tenant assets are typically generic, incorporating an office component and warehouse space; and can accommodate many uses. 9
Industrial fundamentals in Canada remain strong 1 0
Industrial fundamentals in Canada Growth in GDP drives demand for industrial space 5.00% 1 5,000 4.00% 3.00% 1 0,000 2.00% 1 .00% 5,000 0.00% -1 .00% 0 -2.00% -3.00% -5,000 -4.00% -5.00% -1 0,000 Source: Stats. Canada & RBC 1 1
Canadian GDP growth (%) 2.5 2.7 2.0 1 3E 1 4F 1 5F 5F Canada 4.8 3.9 3.7 1 .9 1 .8 3.5 2.7 2.5 2.9 2.0 1 .1 1 .2 1 3E 1 4F 1 5F 5F 1 3E 1 4F 1 5F 5F 1 3E 1 4F 1 5F 5F AB AB SK SK 1 3E 1 4F 1 5F 5F ON ON QC QC 2.0 2.2 0.8 Healthy GDP growth forecasted for our major markets 1 3E 1 4F 1 5F 5F NS NS Source: Stats. Canada & RBC 1 2
Industrial fundamentals in Canada NATIONAL INDUSTRIAL MARKET Q1 2014 National 1.7 Billion Market size (sq.ft.) 4.0% Vacancy rate 5.3 MM Net absorption (sq.ft.) New supply under construction 0.8% (as a % of total market size) Canadian industrial fundamentals are strong and improving Market data : CBRE 1 3
Key Markets - Calgary Calgary Industrial Q1 201 4 Marke ket Our Portfolio Marke ket Size 1 24 M sq. ft. 2.6 M sq. ft. Growing market with low vacancy • Vacancy Rate 4.7% 1 .0% Our portfolio is 99% occupied • DIR space US retailers (Target, WalMart) seeking • Est. Market In In-place industrial space. $ 1 0.02 $ 9.06 Net rent psf High population growth • 1 0.6% above in-place 1 4
Key Markets - Calgary th street – Multi-tenant 2256 29 th 1 5
Key Markets - Calgary 1 1 39-1 1 65 40th Av NE – Multi-tenant 1 6
Key Markets - Calgary 2876 Sunridge Way NE – Single-tenant 1 7
Key Markets - Edmonton Edmonton Industrial Q1 201 4 Marke ket Our Portfolio Growing market with large population • Marke ket Size 1 06 M sq. ft. 0.8 M sq. ft. increase Vacancy Rate 2.4% 1 .3% Industrial market inventory close to • all-time low vacancy of 2.4% DIR space Est. Market In In-place Limited supply of industrial zoned land • $ 1 0.23 $ 8.64 Net rent psf 1 8.4% above in-place Significant petro-chemical projects • underway north-east of the City 1 8
Key Markets - Edmonton th St NW (Alberta Park) – Multi-tenant 1 6206 1 1 4 th 1 9
Key Markets - Edmonton Recently purchased the remaining 50% interested in this asset; all assets in our portfolio are now 100% owned 2240 Premier Way – Single-tenant 20
Key Markets - Regina Regina Industrial Q1 201 4 Marke ket Our Portfolio Marke ket Size 1 7 M sq. ft. 0.8 M sq. ft. Municipality limiting the release of • industrial land Vacancy Rate 3.5% 4.5% Few developers of multi-tenant industrial • DIR space Significant demand for industrial space • Est. Market In In-place with double digit rents supporting new $ 8.28 $ 7.37 Net rent psf development 1 2.3% above in-place 21
Key Markets - Regina Variety of practical uses for the space. 628-668 Henderson Drive ve (Chestemere) ) – Multi-tenant 22
Key Markets - Regina Many of our properties are suitable for retail-like uses. 402 McDonald street – Multi-tenant 23
Key Markets – Greater Toronto Area (GTA) GTA Industrial Q1 201 4 Marke ket Our Portfolio Canada’s largest industrial market • Marke ket Size 747 M sq. ft. 4.3 M sq. ft. Market vacancy down to 2.3% • Vacancy Rate 2.3% 1 .7% Chrysler planning to re-tool their Windsor • DIR space assembly plant Est. Market In In-place $ 6.22 $ 6.1 0 Net rent psf Low Canadian dollar • 2.0% above in-place Very little new construction in our niche • 24
Key Markets - GTA 45A West Wilmot Street – Multi-tenant 25
Key Markets - GTA 855 Matheson Bouleva vard – Multi-tenant 26
Key Markets - GTA 970 Fraser Drive ve, Burlington – Single-tenant 27
Key Markets - Montreal Montreal Industrial Marke ket Our Portfolio Q1 201 4 Second largest industrial market in • Marke ket Size 295 M sq. ft. 3.7 M sq. ft. Canada Vacancy Rate 7.4% 6.2% Key market to build a national platform • DIR space Steady growth without new supply • Est. Market In In-place $ 6.1 2 $ 5.93 Net rent psf Recent election stabilizes political • 3.2% above in-place environment 28
Key Markets - Montreal th Ave Top 1 1 0 tenant 21 1 ,000 sq. ft. - 1 1 25 50 th venue 29
Key Markets - Montreal Selective ownership of single-tenant assets provides stable cash flow with incrementally less management effort. Top 1 1 0 tenant 327, 7,000 sq. ft. – 1 0001 Metropolitan Bouleva vard East 30
Key Markets - Halifax Halifax Industrial Marke ket Our Portfolio Q1 201 4 Offshore drilling by Encana, Husky and • Shell are regionally supported through Marke ket Size 1 1 .5 M sq. ft. 2.7 M sq. ft. Halifax Vacancy Rate 6.3% 6.7% Federal Gov’t estimates the ship building • program will add ~10,000 jobs DIR space Est. Market In In-place Limited opportunity for expansion of • $ 7.47 $ 7.23 Net rent psf inventory; Regional Municipality controls 3.3% above in-place release of land 31
Key Markets - Halifax Approximately 90% of our asset ets i in this market et are multi-tenant. 1 20 Troop Ave venue – Multi-tenant 32
Key Markets - Halifax 50 Troop Ave venue – Multi-tenant 33
Key Markets - Halifax 320-340 Wright Ave venue – Multi-tenant 34
Geographic diversification +urban concentration 35
Geographic diversification + urban concentration $99 million of NOI or 94% of total portfolio in key urban locations near major transportation infrastructure • 189 buildings with ~1,200 tenants • 14.6 M sf of industrial space • Market rents 6.0% above in-place rents • Weighted average lease term of 4.5 years Examples of these are in the following slides 36
GTA, ON Mississauga Industrial Pearson ~$6.3 M of NOI – 5.9% total International portfolio Airport 37 0 1 2 3 Km
PLANT GTA, ON QEW Corridor ~$5.8 M of NOI – 5.5% total portfolio 38 0 2 4 6 km
Calgary, AB 39 0 2 4 km
Calgary International Airport Deer foot Trail Main highway to Edmonton Calgary, AB Industrial North ~$10.8 M of NOI – 10.2% total portfolio 40 0 1 2 3 4 km
Deer foot Trail Main highway to Edmonton Calgary, AB Industrial Southeast ~$3.8 M of NOI – 3.6% total portfolio 41 0 1 2 km
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