investor presentation - dream · march 2016 • • • • • • 3 participation in strong...
TRANSCRIPT
1
Investor PresentationMarch 2016
•
•
•
•
•
•
3
Participation in strong Canadian industrial fundamentals
Current Canadian interest rate and foreign exchange environment favorable to industrial sector
Low vacancy rate
Strong demand for multi-tenant, small bay space and limited new supply under construction
Quality Portfolio
Two thirds of our portfolio is multi-tenant, offering significant rental growth opportunities
Well diversified by geography and tenant mix, no tenant represents over 3.8% of net operating income
Limited direct exposure to Western Canada oil & gas industry (0.9% of total GLA expires in the next two years)
Alberta portfolio is currently 98% occupied
Track record of growth & performance since IPO
5.5% compounded annual AFFO growth since IPO forecast in Oct 2012
Increasing asset base from $0.7 billion to $1.7 billion, growing and diversifying the initial 6 million s.f. portfolioto 17 million s.f. across all major markets
4
Secure and stable distribution
85% payout ratio in Q4-15
Current yield ~9%
Increased distribution by 4% in April 2013
Attractive valuation provides opportune entry point
DIR.UN currently trades at an attractive 9.8x P/AFFO and 20% discount to NAV, based on consensus estimates
Consensus “BUY” rating from seven of nine 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 for unitholders,and transaction & capital markets expertise
55
Market size by province (GLA)
6Multi-tenant: 65%Single-tenant: 35%
8
Single-tenant Multi-tenant
8
43% of GLA
0%38% of GLA
19% of GLA
Warehouse & Distribution: Brick (Montreal)
Warehouse & Distribution: Brick (Montreal)
100% leased
GLA: 327,000 sq.ft.
Ceiling height: 41 ft.
Site coverage: 30%
Remaining lease term: 8.4 years
Flex Industrial: Sunridge Business Park (Calgary)
Flex Industrial: Sunridge Business Park (Calgary)
97% leased, over 40 tenants
GLA: 600,000 sq.ft. / 12 buildings
Ceiling height: 24 ft.
Remaining lease term: 3.4 years
Light Manufacturing (2360 Cornwall Rd, Oakville)
Light Manufacturing (2360 Cornwall Rd, Oakville)
100% leased to 3 tenants
GLA: 200,000 sq.ft.
Ceiling height: 28 ft.
Site coverage: 40%
Remaining lease term: 4.8 years
16
Total Portfolio Occupancy
95.0%
Average Remaining Lease Term4.3 Years
17
Calgary, 25%
GTA, 25%Montreal, 19%
Halifax, 15%
Edmonton, 8%
Regina, 7%
Other ON, 3%
Tenants in our PortfolioGeographic NOI %
1810
19
20
21
Unencumbered Assets
$119 million
Interest Coverage Ratio
3.1x
$0
$25
$50
$75
$100
$125
$150
$175
2016 2017 2018 2019 2020 2021 2022 2023 2024
Mortgages & Credit Facility Convertible Debentures
3.95%
22
Dream Hard Asset Alternatives
Trust
— 22
Dream Office REIT
Dream Industrial REIT
Dream Global REIT
Housing & Urban Development
Land Development
Renewable Power
Largest Office REIT in Canada
One of the Largest Dedicated Industrial REITs
in Canada
Largest Global REIT in Canada
Fund for New Opportunities for Hard
Asset Investments
Asset Management & Advisory Services / Publicly listed funds Operating Businesses
23
25
Source: CBRE Q4 2015 MarketView
26
Source: CBRE Q4 2015 MarketView
27
Source: CBRE Q4 2015 MarketView
28
Source: CBRE Q4 2015 MarketView
29
Source: CBRE Q4 2015 MarketView
30
31
32