Crombie Real Estate Investment Trust : Investor Presentation November 2021
Proven stability and sustainable growth
Investor Presentation
November 2021
Warning notices
Forward-looking information:
This presentation contains forward-looking statements that reflect the current expectations of Crombie management with respect to future results, performance, performance, prospects and opportunities of Crombie. Wherever possible, words such as “further,” “may,” “will,” “estimate,” “anticipate,” “believe,” “expect,” “intend” and similar expressions are used to identify these forward-looking statements. These statements, including statements about bad debt expenses, the balance of anticipated rents to be recovered, the development potential of Crombie’s development locations, the estimated total cost of developing those locations, the impact on net asset value and expected development returns, the value-adding nature of the development Properties and transactions reflect current beliefs and are based on information currently available to Crombie management. Forward-looking statements necessarily involve known and unknown risks and uncertainties, including real estate market cycles, general economic conditions, the uncertain economic impact of COVID-19, the availability of funding and manpower, actual development costs, uncertainties in obtaining the necessary community zoning and building permits, completing successful results Contracts with existing tenants and, if applicable,
A number of additional factors, including the risks discussed in our annual information form, could cause actual results, performance, success, prospects or opportunities to differ materially from those discussed or implied in the forward-looking statements. Careful consideration should be given to these factors and the reader should not place undue reliance on any forward-looking statements. It cannot be guaranteed that the
Crombie’s management expectations will prove correct.
Readers are cautioned that such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in these statements. Crombie cannot guarantee that actual results will match these forward-looking statements.
Non-GAAP metrics:
Certain terms used in this presentation such as AFFO, FFO, NAV, SANOI, Real Estate Cash NOI, EBITDA, Debt at Gross Fair Value, Debt to EBITDA, Interest Coverage, and Return on Costs
no measures that are defined under generally accepted accounting principles (“GAAP”) and have no standardized meanings prescribed by GAAP. AFFO, FFO, NAV, SANOI, real estate cash NOI, EBITDA, debt to gross fair value, debt to EBITDA, interest coverage ratio and cost return are not to be understood as an alternative to net profit or cash flow from operating activities according to the provision: GAAP. AFFO, FFO, NAV, SANOI, real estate cash NOI, EBITDA, debt at gross fair value, debt at EBITDA, interest coverage ratio and cost return as shown, may not be comparable with similar key figures from other issuers. Crombie believes AFFO, FFO, NAV,
SANOI, real estate cash NOI, EBITDA, debt to gross fair value, debt to EBITDA, interest coverage ratio and cost return are useful for assessing operating performance and that
these measures are also useful for evaluation purposes and
are relevant and meaningful measures of its ability to earn cash and distribute to Shareholders. Reconciliations of AFFO and FFO to the most comparable GAAP measure are included in Crombie’s Management Discussion and Analysis for the most recently closed reporting period.
A leader in the Canadian real estate market
Strong, stable portfolio with growth opportunities
High quality grocery anchored portfolio for strong, predictable cash flow growth
298 accommodations
including 4 properties owned by joint ventures
$ 5.1 billion
Fair value of investment properties2
82%
Annual Minimum Rent (AMR) from grocery and pharmacy-based properties, including retail-related industries
57% AMR from the empire,
strategic partner and food retailer
VECTOM1 focused, value-adding development pipeline
$ 4.6-6.5 billion
large development pipeline for mixed use
6th 30 pipeline
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finished projects |
Projects |
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2
4th active with zoning
Approvals
Strong financial position with access to multiple sources of capital
$ 1.5 billion
unencumbered wealth
BBB (low)
negative trend
Assessment by DBRS
49.3%
Debt at gross book value3
45.5%
Debt at gross fair value3
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3 |
1. |
Vancouver, Edmonton, Calgary, Toronto, Ottawa, Montreal |
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2. |
Contains partial ownership that is subject to proportionate consolidation |
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3. |
Non-GAAP measures used by management to assess Crombie’s business performance. See Q3’21 MD&A for additional information and comparable GAAP measures. |
Crombie continues to outperform the TSX and real estate sectors1
Crombie REIT
S & P / TSX Capped REIT Index
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600 |
S & P / TSX composite |
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Crombie REIT |
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CAGR 11.6% |
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500 |
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400 |
S & P / TSX Capped REIT Index |
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CAGR 8.6% |
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300 |
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S & P / TSX composite |
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CAGR 6.8% |
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200 |
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100 |
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0 |
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Mar-06Mar-07Mar-08Mar-09Mar-10Mar-11Mar-12Mar-13Mar-14Mar-15Mar-16Mar-17Mar-18Mar-19Mar-20Mar-21 |
1 CIBC – October 28, 2021
Fundamentals stable thanks to COVID-19
- Prioritized health, safety and Wellbeingof our employees, tenants, communities and our business
- Reinforced strong financial position with increased liquidity
- Care of tenants through the Crombie Values Small Business Program, CECRA1 Program, CERS2 Program and selection of tenant support
- Thank you pay program for frontline employees
- Strong financial position, growing unencumbered asset pool
- Solid operational fundamentals through well positioneddefensive portfolio
- Empire wholly owned subsidiary, Sobeys Inc., a major retailer of groceries and other essential products and our strategic partner, saw S&P restore investment grade status
- Essential services make up 70% of AMR
- 99% the tenant opened As of 09/30/2021
- Strong binding occupancy of 96.5% in the third quarter of 2021
- 99% Rent moving in in the 3rd quarter of 2021; 100% in October 2021
- 80% of the top 10 tenants are investment grade
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5 |
1. |
Canada Emergency Aid for Commercial Lease |
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2. |
Canada emergency aid for rent |
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Disclaimer of liability
Crombie Real Estate Investment Trust published this content on November 26, 2021 and is solely responsible for the information contained therein. Distributed by public, unedited and unchanged, on November 27, 2021 01:59:07 UTC.
Publicnow 2021
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Technical analysis trends CROMBIE REAL ESTATE INVESTMENT TRUST
| In the short term | Halftime | Long term | |
| Trends | Bearish | Neutral | Bullish |
Development of the income statement
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Sell
Obtain |
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| Medium consensus | EXCEED |
| Number of analysts | 9 |
| Last closing price |
17.59 CAD |
| Average target price |
19.61 CAD |
| Spread / Average Target | 11.5% |
