Post on 01-Aug-2020
transcript
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Investor PresentationMarch 2015
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Participation in strong Canadian industrial fundamentals
Current Canadian interest rate and foreign exchange environment favorable to industrial sector
Limited direct exposure (0.8% of expiries over the next two years) to Western Canada oil & gas industry,Alberta portfolio is currently 98% occupied
Multi-tenant Weighted Portfolio Better Positioned to Crystalize Rental Growth Opportunities
Market rents 4.4% above in-place rents with growth potential
Portfolio is 2/3 multi-tenant offering significant rental growth opportunities
Well diversified by geography and tenant mix, no tenant represents over 3% of net operating income
Track record of growth & performance since IPO
6.8% annual equivalent AFFO increase vs. IPO forecast in Oct 2012
Increasing asset base from $0.7 billion to $1.7 billion, diversifying the portfolio across all major markets
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Secure and stable distribution
88.5% payout ratio in 2014, current yield ~8%
Increased distribution by 4% in April 2013
Attractive valuation provides opportune entry point
Per consensus estimates, DIR.un currently trades at an attractive 11x P/AFFO and 13% discount to NAV.
Consensus “BUY” rating from all eight Canadian sell-side research analysts
Operating with an established platform, and opportunity to leverage relationship with Dream
Over 100 dedicated staff members primarily in leasing, property management and other functions
Full access to Dream’s extensive network of global relationships, track record of value creation forunitholders, and transaction & capital markets expertise
Multi-tenantSingle-tenant 5
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Single-tenant Multi-tenant
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99
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Total Occupancy
96.0%
Average Remaining Lease Term4.4 Years
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Calgary, 25%
GTA, 24%Montreal, 19%
Halifax, 16%
Edmonton, 8%
Regina, 5%
Other ON, 3%
Tenants in our Portfolio – Large & Small BayGeographic NOI %
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$1,000
$1,200
$1,400
$1,600
$1,800
2012 2013 2014
$0.71
$0.74
$0.79
$0.83
$0.65
$0.70
$0.75
$0.80
$0.85
IPO Forecast* 2013 2014 2015E**
KingSett/D.un Portfolio($130 mln)
AF
FO
/pe
r u
nit
6.8% 2-yr annual equiv. AFFO
increase since IPO forecast
KingSett Capital Portfolio ($500 mln)
C2C Industrial Acquisition ($230 mln)
CanFirst Portfolio($150 mln)
Bo
ok
Va
lue
of
Tota
l Ass
ets
($
mil
lio
ns)
4-5% expected growth**
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Location GLA (sf) No. of Properties Going-in Cap Rate Price ( Fair Value) Year
Kingsett & D.un PortfolioCalgary, Edmonton, GTA & Montreal
1,400,000 14 7.3% $128 million September 2014
C2C Portfolio Edmonton, GTA, Montreal & Halifax
2,500,000 25 6.7% $226 million May 2013
CanFirst Portfolio GTA 1,600,000 22 6.7% $152 million April 2013
KingSett PorftolioCalgary, GTA, Montreal & Halifax
5,300,000 79 6.6% $500 million December 2012
Initial PortfolioCalgary, Edmonton, GTA, Montreal & Halifax
6,000,000 77 6.7% $ 660 million October 2012
In two years, we have grown to ~$1.7 billion through acquisitions, maintaining leverage below 53%.
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86.6%
$0.202
$0.15
$0.16
$0.17
$0.18
$0.19
$0.20
$0.21
Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
80%
85%
90%
95%
100%
105%
AFFO/unit
Payout ratio %
Pa
yo
ut
Ra
tio
AF
FO
/Un
it
Increased Distributions by 4%
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Unencumbered Assets
$166 million
AFFO Payout Ratio
88.5%
Interest Coverage Ratio
3.0x
Distribution Yield8%
Unencumbered Assets
$119 million
$0
$25
$50
$75
$100
$125
$150
$175
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Mortgages Convertible Debenture
3.61%
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Internal Growth Drivers External Growth Drivers
Increase Rents
Multi-tenant focus offers quicker realization of rent growth opportunities
Market rent above in-place rates at 4.4%
Zoning constraints are present in almost all of our key markets. The low level of new supply, especially for multi-assets, in conjunction with rents below rates that would justify new
construction place upward pressure on market rents and occupancy in our portfolio.
Improve Occupancy
Performance improvement of previously undermanaged portfolios. (Average occupancy
increase of 100+ bps on acquisitions)
“Generic” portfolio characteristic accommodates more tenant types and larger
variety of uses.
Accretive Transactions
$1 billion of acquisitions, more than doubling our portfolio size since IPO
Ability to access Dream’s relationships, transaction, asset management and capital markets expertise to obtain competitive advantage in transactions. Extensive network of national and
global JV partners and financial institution support.
Asset Management
Rooftop solar panel projects present creative sources of revenue from unused space
Opportunities for asset intensification/redevelopment and turning
structural vacancies into leasable space
Diversified asset management platform well positioned to consolidate fragmented
industrial sector in Canada
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Current Situation
Development Proposal
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Source: CBRE
Source: CBRE
Source: CBRE
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Source: CBRE Q4 2014 MarketView
7.5% above in-
place
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Source: CBRE Q4 2014 MarketView
1.8% above in-place
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Source: CBRE Q4 2014 Marketview, Avison Young
1.7% above in-place
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Source: CBRE Q4 2014 MarketView, Avison Young
2.5% above in-place
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