powerpoint presentation · 2018-08-15 · this presentation may contain “forward looking”...

FORWARD-LOOKING STATEMENTS

This presentation may contain “forward looking” information about

future events or the REIT’s future performance. This information, by

its nature, is subject to risks and uncertainties that may cause actual

events or results to differ materially, including those described under

the heading “Risks and Uncertainties” in our most recently filed AIF.

Material assumptions that underpin any forward-looking statements I

make include those described under “Forward Looking Disclaimer” in

our MD&A for the first quarter of 2013.

RETURN TO UNITHOLDERS

2,949

Total Asset Growth ($ Millions)

38% CAGR

$128 M

$3.1 B

RETURN TO UNITHOLDERS

-40

0

40

80

120

160

200

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Allied Properties S&P/TSX Composite Index

AVERAGE ANNUAL TOTAL RETURN

22%

Unit Price Growth As at 05/04/2012

Proximity to City Core

Distinctive Environments

Internally & Externally

Lower Occupancy Costs than

Office Towers

OWNER, MANAGER & DEVELOPER DOWNTOWN OFFICE PROPERTIES IN CANADA

EASTERN

CENTRAL

WESTERN

284,631 sf

284,595 sf

379,912 sf

VANCOUVER

WINNIPEG

EDMONTON

74,063 sf

643,893 sf

VICTORIA

CALGARY

183,859 sf 214,586 sf QUÉBEC CITY

OTTAWA

415,628 sf 3,586,538 sf

KITCHENER TORONTO

3,256,616 sf MONTRÉAL

PORTFOLIO

Properties

Gross

Leasable Area

Net Operating Income

PORTFOLIO GEOGRAPHIC DISTRIBUTION

Eastern

Central

Western

23%

60%

17%

Lease Maturity Schedule (as % of GLA)

IMPROVING LEASE MATURITY

AVERAGE OF 10.0% OVER 5 YEARS

WELL-DIVERSIFIED TENANT MIX

Business Service & Professional

Retail

Telecom & IT

Media & Entertainment

Financial Services

Educational & Institutional

Other

Government

20.7% 14.5%

32.0%

10.4%

5.8%

1.8%

11.7%

3.1%

DECLINING EXPOSURE TOP 10 TENANTS

Tenant % of Revenue

Equinix 3.6%

National Capital Commission 3.1%

Cologix 2.8%

Ubisoft 2.4%

Visa Desjardins 2.3%

Allstream 2.2%

SAP Canada 1.8%

Bell Canada 1.7%

TELUS 1.5%

Verizon 1.4%

Most important trend

Provides context for value creation

Anchors investment & operating focus

URBAN INTENSIFICATION

CREATING VALUE

UPGRADES

3 projects

900,000 sf of GLA

UPGRADES

Completion targeted

within 18 months $8.5 M in stabilized NOI

REDEVELOPMENT

8 projects

1.1 sf of GLA

Completion targeted

within 24 months

$28.0 M in

stabilized NOI

70 Richmond St. E

REDEVELOPMENT

500-522 King St. W Chamber of Commerce Building

Toronto Calgary

REDEVELOPMENT

905 King St. W The Burns

Building

The Breithaupt

Block

Toronto

Kitchener

Calgary

5445

de Gaspe

Montreal

TELECOM & IT FACILITIES 151 Front West

One of eight internet hubs in

North America

TELECOM & IT FACILITIES

905 King West 60 Adelaide East

REDEVELOPMENT ACQUISITION

TELECOM & IT FACILITIES 250 FRONT WEST

168,000 sf lease for 49 years

Part of Canadian Broadcast Centre

TELECOM & IT FACILITIES 250 FRONT WEST

• Significant floor-loading &

freight-elevator capacity

• 14 foot+ clear ceiling height

• Enwave deep-water cooling

• Dedicated electrical service

of 9 MVA

• ~$30 M investment

• Contribute to 2014 NOI

INTENSIFICATION

10

projects

2 under

development

8 rental properties

in approval or

pre-development

QRC WEST PHASE 1

2015 Target

for

Completion

410 FRONT ST. W

Redevelopment

of ~8 Acres

Mixed-use retail, office

and residential

environment

GLOBE LANDS INITIAL SITE AND RECENT ADDITION

PRELIMINARY LAYOUT

PRELIMINARY LAYOUT

CABOT CIRCUS BRISTOL

LIVERPOOL ONE LIVERPOOL

PRINCESSHAY EXETER

PRINCESSHAY EXETER

PRINCESSHAY EXETER

EVOLVING VISION

INTENSIFICATION

171 FRONT ST. WEST

INTENSIFICATION

171 FRONT ST. WEST

INTENSIFICATION

3.75 M sf of

potential GLA

Next wave of development

pipeline

DECLINING COST OF EQUITY

Issue Price and Yield

($)

12%

3%

6%

9%

(%)

Yield Issue Price

DEBT

• Conventional first mortgage financing

• Prefer longer terms

Fixed interest over extended period

• No variable-rate debt

• Average annual interest rate was 5%

• Mortgages weighted average term to maturity five years

OUR DEBT RATIOS ARE

AMONG THE VERY BEST

CONSERVATIVE LEVERAGE BENEFITS

DEFENSIVE

OFFENSIVE

Protects long-term interests in the face of a

slow economy

Enables pursuit of value-creation opportunities

in a strong economy

Enables pursuit of opportunities in a slow

economy

FINANCING LEVERAGE

• Issuance of unsecured debentures

Allied has not used this option

Working to establish required credit rating

• Readily available equity and first mortgage financing

• Debt ratios favour using mortgage financing over

next two years

OPERATIONS

• 89% occupancy at years end in 2012

• 240 basis point increase in occupancy projected

for 2013

Growing Occupancy

Increasing Rental Revenue

• Expiring leases create opportunity to increase rents

• 8% increase in 2012

• Similar increase expected in 2013

TEAM-BUILDING

Commercial real estate is a business

requiring a knowledgeable, coordinated

and motivated team.

TEAM-BUILDING CORE VALUES

RESPECT

FOCUS

CREATIVITY

ENTHUSIASM

TEAMWORK

COMMUNITY BUILDING

TEAM-BUILDING

VP Level Position • overseeing national building standards

and procurement

2 National Director Level Positions • overseeing operations and leasing

Promotion & Recruitment

IT, Development & Leasing Divisions • bolstered, primarily from within

TEAM-BUILDING

With the right people, there’s no

limit to what a good business

can achieve.

GROWTH

SURVIVAL REQUIRES STRATEGIC

AND MEASURED GROWTH

better access to capital

PROGRESSIVELY more operating stability

better human resources

TARGETING

High single-digit or low double-digit

percentage increases year-over-year in

our FFO and AFFO per unit.

Unitholders

Tenants

Employees

Trustees

Partners

Lenders

Brokers

Advisors

Suppliers

Urban

Communities