Crombie Real Estate Investment Trust : Investor Presentation November 2022

Proven Stability and Sustainable Growth

Investor Presentation

November 2022

Cautionary statements

Forward looking information:

This presentation contains forward-looking statements that reflect the current expectations of management of Crombie about Crombie’s future results, performance, achievements, prospects and opportunities. Wherever possible, words such as “continue”, “may”, “will”, “estimate”, “anticipate”, “believe”, “expect”, “intend” and similar expressions have been used to identify these forward-looking statements . These statements, including

statements regarding the development potential of Crombie’s

development sites, the total estimated cost to develop, expected annual development, SANOI growth targets, expected net proceeds from properties held for sale, and future debt maturities reflect current beliefs and are based on information currently available to management of Crombie. Forward-looking statements necessarily involve known and unknown risks and uncertainties, including real estate market cycles, general economic conditions, the availability of financing opportunities and labour, actual development costs, uncertainties in obtaining required municipal zoning and development approvals, concluding successful agreements with existing ones tenants, and, where applicable, successful execution of development activities undertaken by related parties not under the direct control of Crombie.

A number of additional factors, including the risks discussed in our Annual Information Form, could cause actual results, performance, achievements, prospects or opportunities to differ materially from the results discussed or implied in the forward- looking statements. These factors should be considered carefully, and a reader should not place undue reliance on the forward-looking statements. There can be no assurance that the expectations of management of Crombie will prove to be correct.

Readers are cautioned that such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements. Crombie can give no assurance that actual results will be consistent with these forward-looking statements.

Non GAAP Measures:

Certain terms used in this presentation, such as AFFO, FFO, NAV, SANOI, debt to trailing 12 months adjusted EBITDA, D/GFV and interest coverage ratio are not measures defined under Generally Accepted Accounting Principles (“GAAP”) and do not have standardized meanings prescribed by GAAP. AFFO, FFO, NAV, SANOI, debt to trailing 12 months adjusted EBITDA, debt to gross fair value, and interest coverage ratio should not be construed as an alternative to net earnings or cash flow from operating activities as determined by GAAP. AFFO, FFO, NAV, SANOI, debt to trailing 12 months adjusted EBITDA, D/GFV, and interest coverage ratio as presented, may not be comparable to similar measures presented by other issuers. Crombie believes that AFFO, FFO, NAV, SANOI, debt to trailing 12 months adjusted EBITDA, D/GFV and interest coverage ratio are useful in the assessment of its operating performance and that these measures are also useful for valuation purposes and are relevant and meaningful measures of its ability to earn and distribute cash to unitholders. See the

section titled “Non-GAAP Financial Measures” in Crombie’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2022 (“Q3’22 MD&A”) and the reconciliations referenced in that section, all of which are incorporated into this presentation by this reference, for a discussion of these non-GAAP measures. A copy of the Q3’22 MD&A is available under Crombie’s profile on SEDAR at

A leader in Canadian real estate

Strong, stable portfolio with opportunity for growth

High-quality grocery-anchored, industrial and multi-residential portfolio driving strong, predictable cash flow growth

302 properties

including 5 properties owned in joint ventures


fair value of investment properties1


annual minimum rent (AMR) from grocery-anchored properties, inclusive of retail-related industrial

58% AMR from Empire,

strategic partner and grocery retailer

VECTOM2 focused value

enhancing development


$5.0 – 6.8B

major mixed-use development pipeline


29 pipelines

completed projects3


72% located in VECTOM




with zoning


Strong financial position with access to multiple sources of capital


unencumbered assets

BBB (low)

stable trend

rating by DBRS


Debt to gross book value


Debt to gross fair value4


1. Includes partially owned properties held in joint operations and joint ventures

  1. Vancouver, Edmonton, Calgary, Toronto, Ottawa, Montreal
  2. Davie Street considered one project completed in two phases (retail and residential)
  3. Non-GAAPmeasures used by management to evaluate Crombie’s business performance. See Q3’22 MD&A for additional information and comparable GAAP measures.

Crombie outperforms the TSX and Real Estate Sector1

Crombie REIT

S&P/TSX Capped REIT Index


S&P/TSX Composite Index

Crombie REIT

CAGR 10.0%



S&P/TSX Capped REIT Index

CAGR 6.9%


S&P/TSX Composite

CAGR 6.0%





1. CIBC – Total Return Analysis – November 7, 2022

Near-term priorities

Deliver strong risk-adjusted returns and accelerate NAV and AFFO growth per unit


  • Elevating portfolio quality and strength
  • Improving cash flow through investment in Empire-related initiatives and developments

Short to medium term targets1.2

Annual SANOI growth +2-3%


Robust development


  • Focused on high growth mixed- use urban and suburban markets with development opportunities
  • unlock $5.0-6.8B organic development pipeline

Short to medium term targets1.2 Completion of construction on active near termprojects with significant NAV creation

Backfilling pipeline with another 5 projects zoned, and 7 zoning applications submitted, or in pre-planning

Strong Financial


  • Disciplined and innovative capital funding and management
  • Maintain ample liquidity, strong balance sheet and optimal low-cost capital structure

Short to medium term targets1.2 Weighted average term to maturity of debt of >5 years

Minimum of $250M liquidity

Target D/GFV of 45-47%

  1. Forward lookingStatements and Non-GAAP measures used by management to evaluate Crombie’s business performance. See Q3’22 MD&A for additional information and comparable GAAP measures.
  2. Short to medium term targets are for the current to five year time frame

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Crombie Real Estate Investment Trust published this content on November 25, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 November 2022 14:43:25 UTC.

Public now 2022

Sales 2022 415 m
311 m
311 m
Net income 2022

Net Debt 2022

P/E ratio 2022
Yield 2022 5.47%
capitalization 2 901 m
2 175 m
2 175 m
capi / Sales 2022 6.99x
capi / Sales 2023 6.75x
Nbr of Employees 294
free float 58.3%

Duration : Auto.2 months3 months6 months9 months1 year2 years5 years10 yearsMax.

Period : DayWeek

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Income statement evolution



Mean consensus OUTPERFORM
Number of Analysts 9
Last close price $16.30 CAD
Average target price $18.00 CAD
Spread / Average Target 10.4%