investor day 2018 property tour · 2018-04-23 · 4 property tour properties industry leading...

INVESTOR DAY 2018 PROPERTY TOUR

April 18, 2018

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CANADA’S MAJOR MARKET PORTFOLIO• High quality, necessity based retail, and increasingly mixed-use major markets portfolio

• Diversified, strong national tenant base

• Significant upside on rent growth

• Base for significant NAV growth – tremendous intrinsic value to be unlocked

• Strong executive bench with wealth of experience and proven track record

• Focusing on transit-

oriented urban

intensification in major

markets

• Mostly mixed-use with

residential rental

and/or condo

development

• Strategic alliances to

mitigate risk and

create steady fee

stream

• Robust and growing

pipeline of well located

sites with substantial

zoning approved

UNLOCKING INTRINSIC VALUE

STRATEGIC ACQUISITIONS

• Acquire only the best

locations in the six

major markets

• Opportunities to

acquire partners’

interests in today’s

tight market

• Highly selective

acquisitions of

development sites,

leveraging existing

properties

DRIVING ORGANIC GROWTH

• Evolving tenant mix

and revenue growth

• Improving operating

efficiency and cost

structure

• Redeveloping prime

assets

• Optimize pads by

adding additional

GLA

• Drive ancillary

revenues

• Continuous portfolio

pruning

• Low leverage

• Low cost of debt

• Laddered debt

maturity and mostly

fixed rate

• Access to multiple

sources of capital

• Large

unencumbered

assets pool

generating 56.7% of

annualized NOI

STRONG BALANCE SHEET

VALUE PROPOSITION AND FOUR STRATEGIC PILLARSREAL VISION, SOLID GROUND

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LEADERSHIP TEAM

Ed Sonshine

O.Ont., Q.C.

Founder and CEO

John Ballantyne,

SVP Asset

Management

24 years in Real Estate

Jeff Ross,

SVP Leasing & Tenant

Coordination


Andrew Duncan

SVP Developments

18 years in

Development, 12 years

in Real Estate

Rags Davloor,

President and COO

25 years in Real Estate,

Operations & Finance

Qi Tang,

SVP and CFO

20 years in

Finance

& Real Estate

Jonathan Gitlin,

SVP Investments &

Residential


Danny Kissoon

SVP Operations

32 years in Real

Estate

Jennifer Suess

SVP General Counsel

& Corporate Secretary

16 years in Law with a

focus on Real Estate

• Strong executive bench

with a wealth of

experience and proven

track record

• Fully integrated REIT

with all disciplines in-

house including:o Investments

o Leasing

o Asset Management

o Development &

Construction

o Property Management

o Finance, Legal and

Human Resources

• Trusted and respected,

with deep industry

knowledge and

relationships

EXPERIENCE, INTEGRITY AND FORESIGHT

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PROPERTY TOUR PROPERTIESINDUSTRY LEADING PRESENCE IN THE TORONTO CORE

Property Name

1 RioCan Hall

2 The Well

3 King Portland Centre (Kingly)

4 Shoppes on Queen West

5 Bathurst College Centre

6 College Ave. & Manning Ave. (Strada)

7 491 College St.

8 740 Dupont Ave. (Litho.)

9 Yonge Eglinton Centre

10Northeast Corner Yonge Eglinton

(ePlace and eCentral)

11 Sunnybrook Plaza

12 RioCan Leaside

13 Shops on Summerhill

14 Yorkville

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GREATER TORONTO AREA (GTA) FOCUSTOUR AGENDA

Tour

StopName RioCan Interest

NLA SF ‘000s

on

Completion

(100%)

Development

Completion% Leased/

PreleasedPage

1 RioCan Hall 100% TBD TBD 100% 6

2 The Well50% - Commercial

40% - Residential Air Rights

50%- Building 6

2,938Commercial - 2021

Building 6 – 2023N/A 7

3 King Portland Centre (Kingly) 50% 425 2018/2019 94% 10

4 Shoppes on Queen West 100% 89 2011 100% 12

5 Bathurst College Centre 100% 139 2019 79% 13

6College Ave. & Manning Ave.

(Strada)50% 113 2021 79% 14

7 491 College St. 50% 24 2018 63% 15

8 740 Dupont Ave. (Litho.) 50% 181 2021 13% 16

9 Yonge Eglinton Centre 100% 1,059 2016 (expansion) 99.3% 18

10Northeast Corner Yonge

Eglinton (ePlace and eCentral)50%* 707 2018/2019 31% 19

11 Sunnybrook Plaza 50% 316 2023 84.5% (current) 20

12 RioCan Leaside 100% 1,307 TBD 100% 21

13 Shops on Summerhill 75% TBD TBD 100% 22

14 Yorkville 50% ~500 TBD N/A 23

PRIME DOWNTOWN LOCATION

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Proposed

RIOCAN HALL

TORONTO ON

Location: Prime location in the heart of

the entertainment district in Toronto’s

Downtown corridor

Intersection: Richmond St. and John St.

NLA: 227,326 sf

Ownership: 100%

Major Tenants

• Cineplex

• Michaels

• Marshalls

• Goodlife Fitness

Potential for future intensification

considering the prime location in

downtown Toronto

Proposed

UNPARALLELED GTA ASSETS

Demographics in 5km radius:

• Population: 526k

• Average household income: $118k+

MIXED-USE DEVELOPMENT

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Proposed

THE WELL TORONTO, ON



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Proposed

• Demographics 5KM radius:



• Innovative, amenity rich design including a European inspired

food hall

• Office is targeted LEED platinum

• Teaming with Enwave for the first low-carbon resilient cooling

and heating option for the property and surrounding community

THE WELL,

TORONTO, ON

Location: 7.7 acre site situated at the gateway to

downtown Toronto, at Front and Spadina. Transit

oriented adjacent to the site of a proposed intercity

GO Train stop.

Ownership Structure:

Commercial: 50% (J.V. with Allied Properties REIT

Residential: 40% (J.V. Allied Properties REIT and

WNUF2*)

Residential Building 6: 50%

(J.V. with Woodbourne )

Property Type: Mixed-use with 500,000 sf retail,

1.1 M sf office and ~1,800 residential units (condo

and rental) at 100%

Zoning Status: Zoned

Estimated PUD Costs (RioCan’s interest):

$675 M, Residential Building 6 - $129 M

Estimated project completion:

Commercial - 2021, Residential Building 6 - 2023

*WNUF2 holds a 20% interest in the residential portion until the sale of air rights to Tridel and Woodbourne upon completion of the underground and podium structures .



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Proposed

THE WELL,

TORONTO ON

Surfacing Value

• RioCan and its partners acquired the

former Globe and Mail head office and

surrounding land for $170 million in 2012

and 2013

• Agreement in place to sell 1.1M sf of air

rights to residential developers Tridel and

Woodbourne for approximately $180 million

upon completion of the underground and

podium structures

• Upon completion, an estimated 10,000

people will live and work at the property

• A comprehensive signage master plan

agreement has been approved by the city.

Interior and exterior digital signage will

generate significant ancillary revenue

Proposed


UNPARALLELED GTA ASSETSRESIDENTIAL INTENSIFICATION

Location: A 1.5 acre site in Toronto’s trendy

downtown west with direct access to transit

Property Type: Mixed-use with office, retail and

condominiums

Leasing/Sales: 134 condominium units fully sold out

ahead of price expectations. New office 256,000 sf

(at 100%) 100% leased to Shopify and Indigo: retail

all but 7,000 sf leased. Existing 55,000 sf of office

space adjacent to the building is 100% leased with

substantial rent upside upon project completion

Ownership: 50% (JV with Allied Properties REIT)

Incremental Commercial NLA: 166,000 sf at

RioCan’s Interest

Zoning/Status: Zoned

Estimated PUD Costs (at RioCan’s Interest):

$82.4 M

Estimated Project Completion: 2018/2019

KING PORTLAND CENTRE,

TORONTO, ON

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Proposed

• Demographics in 5km radius:



• Office tower is targeted LEED platinum


KING PORTLAND CENTRE (KINGLY)

TORONTO, ON

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Proposed


Location: Prime location in Toronto’s

trendy Queen west with direct access to

transit

Property Type: Mixed-use with three

floors of retail and 90 condominium units

Leasing: Retail component is 100%

occupied.

NLA: 89,419 sf

Major Tenants – Loblaws, Winners, Bank

of Montreal

Ownership: 100%

NLA: 89,400 sf

Completed: 2011

SHOPPES ON QUEEN

TORONTO, ON

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ProposedDemographics in 5km radius:




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Proposed

BATHURST COLLEGE

CENTRE, TORONTO

Location: A 1.3 acre site situated in the

western downtown corridor in Toronto, at

Bathurst Street and College Avenue. Directly

across street from Toronto General Hospital

Ownership Structure: 100%

Property Type: 139,000 sf mixed-use office

and retail

Leasing status: 79% pre-leased

Tenants: UHN, Winners, Sobeys, Bank of

Nova Scotia

Zoning/Status: Zoned

Estimated PUD Costs: $107.4 M

Estimated project completion: 2019

Proposed






Location: Prime 0.5 acre site located in Toronto’s “Little

Italy” district with direct access to transit

Property Type: Mixed-use, office, retail and rental

residential

Leasing (Commercial Component): 79%

Ownership: 50% (JV with Allied Properties REIT)

Incremental Commercial NLA: 56,000 sf at RioCan’s

Interest (113,000 sf at 100%)


Estimated PUD Costs (at RioCan’s Interest): $30.6 M

Project Start / Anticipated Completion: 2018/ Late 2021

COLLEGE & MANNING (STRADA),

TORONTO, ON

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Proposed




UNPARALLELED GTA ASSETSMIXED-USE DEVELOPMENT

Location: Prime site located in Toronto’s

“Little Italy”

Property Type: Mixed-use, office, retail

Leasing: 63%

Major Tenants: LCBO

Ownership: 50% (JV with Allied Properties

REIT)

Commercial NLA: 12,000 sf at RioCan’s

Interest (24,000 sf at 100%)

Estimated PUD Costs (at RioCan’s

Interest): $12.0 M

Anticipated Completion: 2018

491 COLLEGE STREET WEST

TORONTO, ON

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Proposed





• Population: ~700k

• Average household income: ~ $120k

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740 DUPONT AVE. (LITHO.),TORONTO, ON

Location: Toronto, Ontario

Property Type: Located on a 1.4 acre site, this mixed-

use retail and residential containing 9-storey project with

210 rental units and 31,000 square feet of retail

GLA. Firm lease with Farm Boy (23,000sf) to anchor the

retail portion of the site.

Ownership: 50% (JV with Woodbourne)

Project Start / Anticipated Completion: 2017 / 2021

Zoning status: Zoned

Estimated PUD Cost (at RioCan’s interest): $70.2 M

Surfacing Value

• Site was acquired in 2010, formerly occupied by Grand

Touring automobile until November 2017

• Well located along a busy thoroughfare in a densely

populated area of Toronto. A short walk to the Bloor-

Danforth subway line

Proposed

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740 DUPONT AVE. (LITHO.),TORONTO, ON

Proposed

UNPARALLELED GTA ASSETSSTRATEGIC REDEVELOPMENT

RIOCAN YONGE EGLINTON CENTRE, TORONTO

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Intersection: Yonge St. and Eglinton Ave. East

Ownership: 100%

Total GLA: 1,056,285 sf

Property Concept: Mixed-use

Project Completion: 2016

Surfacing Value:

• Purchase Price (2007): $223 million

• Capital Invested: $110 million

• Current Value: $574 million

• NOI at acquisition: $13 million

• Value Stabilized NOI: $26 million

73% increase in value over costs

• Strategically evolved building aesthetics and

tenant mix to meet consumer needs

• Incremental revenue through leasing of the

digital screens on the building interior and

exterior

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YONGE & EGLINTON NORTHEAST CORNER (eCentral at ePlace) TORONTO, ON

Location: A 3.2 acre site at the heart of one of Toronto’s

busiest and most popular intersections. Unparalled access to

the Yonge subway and new Eglinton Crosstown LRT

Property Type: Mixed-use with retail, residential tower with

466 units and condominium tower with 623 units

Ownership: 50% (JV with Metropia and Bazis)

Leasing/Sales: All 623 condominium units have been pre-

sold. Retail is 82% leased (anchored by TD Bank)

Rental Residential Units: 466 Units


Anticipated Completion: 2018 & 2019

Surfacing Value

• Agreement in place to acquire the partners’ 50% interest in

the 466 unit rental residential tower at cost plus $10M

• Agreement in place to acquire partner’s 50% interest in the

retail NLA at a 7% capitalization rate upon completion of the

project




Proposed

RESIDENTIAL INTENSIFICATION

SUNNYBROOK PLAZA,TORONTO, ON

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Location: A 2.3 acre site located on new Eglinton LRT in an

affluent neighbourhood in midtown Toronto

Ownership: 50% (JV with Concert Properties)

Property Type: Mixed-use with one 16 storey and one 11

storey rental residential towers (approx. 427 units)

Commercial NLA: 22,000 sf at RioCan’s Interest

Project Start / Anticipated Completion: 2020/2023

Surfacing Value:

• RioCan acquired the centre in 2007 for $22.8 million (100%)

• Concert paid RioCan $26.3 million in June 2017 for a 50%

interest in the development

• More than doubled the value in ten years, before significant

value creation upon this project’s completion

Proposed





RESIDENTIAL INTENSIFICATION

RIOCAN LEASIDE CENTRE,TORONTO, ON

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Location: Approximately 8.8 acre site located on new

Eglinton LRT in an affluent neighbourhood in midtown

Toronto

Ownership: 100%

Property Type: Mixed-use – Retail, office and

residential

Project Start / Anticipated Completion: TBD

Surfacing Value:

• There is significant value to be unlocked at the site

through the conversion of the current 133,000

square feet of retail into approximately 1.3 million

square feet of retail, office and residential uses

(1,400+ units)

• The site currently contemplates the inclusion of a

community centre and public space

ProposedDemographics in 5km radius:




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UNPARALLELED GTA ASSETSPOTENTIAL RESIDENTIAL INTENSIFICATION

THE SHOPS OF SUMMERHILLTORONTO, ON

Location: Located in the heart of the affluent

neighbourhood of Summerhill in a heritage site

near the Summerhill Subway station.

Intersection: Yonge St. and Summerhill

Property Type: Retail

Occupancy: 100%

Ownership: 100%

Tenants: Terroni, Harvest Wagon

Surfacing Value

Site acquired in 2015, and we are in the

application stages to intensify the site with

residential uses.

Proposed

Demographics in 5 km radius:




YORKVILLE, TORONTO, ON

Location: Transit oriented and in the heart of prestigious Yorkville, one of

Toronto’s most high-end shopping and residential areas.

Property Type: Mixed-use with potential for 0.5M sf of luxury

condominium and retail uses and up to 82 rental units

Ownership: 50/25/25 joint venture among RioCan, Metropia and Capital

Developments

Zoning Status: Zoning Bylaw Amendment submitted April 2018

Surfacing Value:

• As of February 2018 the partners have completed acquisitions of

adjacent properties substantially required for the intensification

project

• RioCan has agreed to purchase the partners’ interest in the retail

portion upon completion at a 6% cap rate and has the right of first

opportunity to acquire the residential rental units

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Demographics in 5 km radius:




investor day 2018 property tour · 2018-04-23 · 4 property tour properties industry leading...

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