INFINITE POSSIBILITIES - SmartCentres
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INFINITE POSSIBILITIES… INVESTOR PRESENTATION Q1 2019
NOTICE TO READER
Readers are cautioned that certain terms used in this Investor Presentation (“Presentation”) such as Funds from Operations ("FFO"), Adjusted
Cashflow from Operations ("ACFO"), "Gross Book Value", "Payout Ratio", "Interest Coverage", "Total Debt to Adjusted EBITDA" and any related per
Unit amounts used by management to measure, compare and explain the operating results and financial performance of the Trust do not have any
standardized meaning prescribed under IFRS and, therefore, should not be construed as alternatives to net income or cash flow from operating
activities calculated in accordance with IFRS. These terms are defined in this Presentation and reconciled to the consolidated financial information of
the Trust in the Management’s Discussion and Analysis (“MD&A”) for the three months ended March 31, 2019. Such terms do not have a
standardized meaning prescribed by IFRS and may not be comparable to similarly titled measures presented by other publicly traded entities.
Certain statements in this Presentation are "forward-looking statements" that reflect management's expectations regarding the Trust's future growth,
results of operations, performance and business prospects and opportunities. More specifically, certain statements contained in this Presentation,
including statements related to the Trust's maintenance of productive capacity, estimated future development plans and costs, view of term mortgage
renewals including rates and upfinancing amounts, timing of future payments of obligations, intentions to secure additional financing and potential
financing sources, and vacancy and leasing assumptions, and statements that contain words such as "could", "should", "can", "anticipate", "expect",
"believe", "will", "may" and similar expressions and statements relating to matters that are not historical facts, constitute "forward-looking statements".
These forward-looking statements are presented for the purpose of assisting the Trust's Unitholders and financial analysts in understanding the
Trust's operating environment, and may not be appropriate for other purposes. Such forward-looking statements reflect management's current beliefs
and are based on information currently available to management. However, such forward-looking statements involve significant risks and
uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements.
Although the forward-looking statements contained in this Presentation are based on what management believes to be reasonable assumptions, the
Trust cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained
herein are expressly qualified in their entirety by this cautionary statement. These forward-looking statements are made as at the date of this
Presentation and the Trust assumes no obligation to update or revise them to reflect new events or circumstances unless otherwise required by
applicable securities legislation.
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 2
CONTENTS ▪ Overview ▪ Intensification ▪ Development ▪ Retail Portfolio ▪ Financial Highlights ▪ Summary SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 3
OVERVIEW
OUR EVOLUTION CONTINUES…
1989-1994 1999 2003 2015
MITCHELL GOLDHAR WALMART FIRST CALLOWAY REIT
BRINGS WALMART JOINT VENTURE TRANSACTION ACQUIRES
TO CANADA WITH WITH SMARTCENTRES
SMARTCENTRES CALLOWAY REIT AND REBRANDS AS
SMARTCENTRES
REAL EST AT E I NVEST MENT T RUST
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 4
OVERVIEW
OUR EVOLUTION CONTINUES…
2018
SMARTCENTRES
CREATES
JV PARTNERSHIPS
& MORE TO COME…
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 5
OVERVIEW ON OUR JOURNEY OF INFINITE POSSIBILITIES 76+ property intensification opportunities identified 168+ development projects in progress 34.4M SF income producing retail portfolio $9.6B dynamic real estate portfolio value SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 6
INTENSIFICATION
76
OF OUR 157 PROPERTIES
HAVE BEEN IDENTIFIED
AS INTENSIFICATION
OPPORTUNITIES TO DATE
MARKED FOR UNDER REVIEW FOR
INTENSIFICATION INTENSIFICATION
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 7
INTENSIFICATION
PROPERTIES BY PROVINCE
BRITISH
COLUMBIA ALBERTA SASKATCHEWAN MANITOBA ONTARIO QUEBEC ATLANTIC TOTAL
MARKED FOR
INTENSIFICATION
6 2 2 1 47 18 0 76
UNDER REVIEW FOR
INTENSIFICATION 8 5 3 2 48 5 10 81
TOTAL
PROPERTIES 14 7 5 3 95 23 10 157
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 8
INTENSIFICATION ABILITY TO EXECUTE STRONG, GOVERNMENT/ JOINT VENTURE STABLE OPERATING EXPERIENCED CONSULTANT PARTNER RESULTS AND SOLID IN-HOUSE RELATIONSHIPS RELATIONSHIPS FOUNDATION DEVELOPMENT TEAM SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 9
SELECT INITIATIVES
1. VAUGHAN METROPOLITAN CENTRE (VMC), TORONTO | 105 ACRES
2. VAUGHAN NORTH WEST, TORONTO | 42 ACRES
3. 1900 EGLINTON AVENUE EAST, TORONTO | 28 ACRES
4. OAKVILLE NORTH, TORONTO | 52 ACRES
5. SOUTH OAKVILLE, TORONTO | 21 ACRES
6. WESTSIDE MALL, TORONTO | 12 ACRES
7. STUDIO CENTRE, TORONTO | 18.5 ACRES
8. PREMIUM OUTLETS, TORONTO & MONTREAL | 45 & 127 ACRES
9. LAVAL CENTRE, MONTREAL | 36 ACRES
10. POINTE CLAIRE, MONTREAL | 22 ACRES
11. CHILLIWACK MALL, VANCOUVER | 15.5 ACRES
…
12. BRADFORD, TORONTO | 57 ACRES
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 10WE ARE REDEFINING
DOWNTOWN VAUGHAN
FUTURE FUTURE VMC
HIGHWAY 7
WOODBRIDGE VAUGHAN VAUGHAN METROPOLITAN CENTRE
| WESTRIDGE | 400& 7
170+ ACRES. 26+ MILLION SF. OF POTENTIAL (REIT SHARE 10.5 MILLION)
HIGHWAY 407
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 11VAUGHAN METROPOLITAN CENTRE (VMC), TORONTO ▪ A long term build (10 – 15 years) ▪ A 50:50 JV between SmartCentres and Penguin Properties. Mitchell Goldhar intimately involved in all aspects of the project ▪ Potential density of 18M – 19M sf. of residential, office and retail development for the whole 100- acre site ▪ At its 50% ownership, SmartCentres lands (approximately 25 acres) represent 4.5M – 5.5M sf. of potential development ▪ Transit infrastructure, including TTC subway and VIVA bus opened in December 2017, and York regional bus station to open summer 2019 SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 12
VMC INITIAL CONDITIONS
2016
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 13VMC TRANSIT OVERVIEW SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 14
VMC 100-ACRE MASTER PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 15
VMC 100-ACRES IN CONTEXT COMPARATIVE OVERLAY VMC VS DOWNTOWN TORONTO SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 16
VMC VISION BECOMING REALITY SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 17
VMC OFFICE TOWERS
KPMG Tower
▪ 365,000 sf. of LEED Gold space, opened in 2016
▪ 300,000 sf. of office space 100% leased
▪ 16th Annual Real Estate Excellence (REX) Award
for Office Development of the Year for the GTA
PwC-YMCA Tower
▪ Second mixed-use tower under construction
▪ YMCA, Library and community space will
comprise 100,000 sf.
▪ PwC has taken possession of 80,000 sf. of office
space
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 18VMC - KPMG TOWER
RENDERING REALITY 100% LEASED
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 19VMC - PWC/YMCA MIXED-USE
RENDERING REALITY 100% LEASED
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 20NEXT UP… RENDERING OF OUR NEXT OFFICE TOWER SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 21
VMC RESIDENTIAL – PHASE 1 ▪ First residential development is a JV with CentreCourt Developments, an experienced GTA- based condominium developer ▪ Initial plan was for a 55 story condominium tower with over 500 suites, anchored by a BUCA- branded restaurant and BAR BUCA, together with an associated parking facility ▪ First tower fully sold in 7 days at higher than initially projected pricing, so second and third towers launched earlier then planned, which also sold out at strong pricing. ▪ Total units: 1,750 SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 22
VMC -TRANSIT CITY 1, 2 & 3
RENDERING REALITY SOLD OUT
SMARTCENTRES REIT
Q1 2019 INVESTORS PRESENTATION 23VMC RESIDENTIAL – PHASE 2
The East Block is the North East parcel of our VMC land.
It will be comprised of:
TRANSIT CITY CONDOS
▪ 2 additional Transit City towers, TC4 (45 floors) and
TC5 (50 floors), in partnership with CentreCourt
▪ TC4 and TC5 went to market April 2019 and all 1,000+
units were sold out by May 2019
RENTAL RESIDENTIAL
▪ SmartCentres with Penguin initiated their first wholly-
owned rental apartment.
▪ 550 rental units across a 35-storey tower and podium
units at the base of the condo towers
The rental apartment and podium floors of the condo
towers will overlook a 2-acre park SOLD OUT
SMARTCENTRES REIT
Q1 2019 INVESTORS PRESENTATION 24VAUGHAN NORTHWEST TORONTO ▪ Existing Walmart anchored shopping centre at Major Mackenzie Drive and Weston Road in Vaughan ▪ JV with Fieldgate on 16-acre site for 230-300 freehold townhomes to be built, construction to commence in 2020 and possession to occur in 2021 and into 2022 ▪ JV with SmartStop for a co-owned self-storage facility ▪ JV with Revera for two towers – seniors apartments and retirement residences ▪ In the process of obtaining approvals on the remaining 6 acres to add mixed-use density including 800,000 sf. of seniors housing, condominium and rental accommodation SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 25
VAUGHAN NORTHWEST TORONTO CURRENT SMARTCENTRES REIT Mixed-Use inc.Seniors Townhouses with Vaughan Northwest Self Storage with Q1 2019 INVESTOR PRESENTATION Homes with Revera Fieldgate Retail SmartStop 26
VAUGHAN NORTHWEST TORONTO PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 27
INTENSIFICATION 1900 EGLINTON AVE EAST TORONTO ▪ Existing 380,000 square foot shopping centre on approximately 28 acres at Eglinton Avenue East and Warden Avenue in Toronto ▪ Anchored by a 214,000 ft. Walmart Supercentre and a 40,000 sf. Winners ▪ Situated on the Eglinton Crosstown light rail transit line, currently under construction with a transit station planned on its doorstep ▪ Currently working through a site specific Official Plan Amendment application to permit up to 5.6 million sf. of mixed uses for a phased redevelopment of the site SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 28
1900 EGLINTON AVE EAST TORONTO CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 29
SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 30
1900 EGLINTON AVE EAST TORONTO PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 31
OAKVILLE NORTH (DUNDAS & TRAFALGAR) TORONTO ▪ An existing 461,000 sf. shopping centre on 52 acres at Highway 5 and Trafalgar Road in Oakville. Anchored by a 195,000 sf. Walmart Supercentre and a 120,000 sf. Real Canadian Superstore ▪ Located within the Uptown Core area in the Town of Oakville, intended to provide a mix of uses, with uncapped densities and permissions allowing for residential, office, retail and commercial uses ▪ The Town recently initiated an Official Plan review for the Uptown Core. SmartCentres is seeking increased height permissions through this process; Targeting up to 30 stories ▪ The master plan demonstrates an average density of 4.4 FSI and over 7 million sf. of residential, retail and mixed use SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 32
OAKVILLE NORTH TORONTO CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 33
OAKVILLE NORTH TORONTO PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 34
SOUTH OAKVILLE TORONTO We have initiated discussions with municipalities, tenants and potential partners to evolve this site into: ▪ 180,000 sf. shopping centre, anchored by strong retailers such as Metro food store, Shoppers Drug Mart, LCBO, Winners and Goodlife Fitness ▪ JV for a Revera seniors residence, and ▪ A townhouse development SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 35
SOUTH OAKVILLE TORONTO CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 36
SOUTH OAKVILLE TORONTO PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 37
WESTSIDE MALL TORONTO ▪ 12-acre urban redevelopment site. Currently a 140,000 square foot shopping centre ▪ New Light Rapid Transit (LRT) station as part of Eglinton Cross Town system to open on site ▪ New links to existing GO network will link new East:West to existing North:South transit framework ▪ OP entitlements for in excess of 1 million sf. ▪ Rezoning plans to increase to 3 - 4 million sf. ▪ Long-term project to add principally new residential development, with select retail SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 38
WESTSIDE MALL TORONTO CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 39
SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 40
WESTSIDE MALL TORONTO PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 41
STUDIO CENTRE TORONTO ▪ Located next to Toronto’s eastern waterfront ▪ A former industrial site, today it is a well- utilized film production centre ▪ SmartCentres and Penguin Properties intend to revitalize the centre, adding new film production, office, and retail opportunities ▪ Rezoning has created the opportunity to build up to 1.2M sf. of office, retail and film studios at the centre ▪ New music studio opened in 2018 SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 42
STUDIO CENTRE TORONTO ▪ 3 km from the CN Tower ▪ 4 km from the Toronto Island Airport (YTZ) SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 43
PREMIUM OUTLETS Joint Venture with Simon Property Group TORONTO PREMIUM OUTLETS ▪ 500,000 sf. when fully completed ▪ Phase I opened Aug. 1, 2013 ▪ Phase II – New parking facility opened Nov. 2017 and Phase II opened Nov. 2018 ▪ Stabilized double digit yield PREMIUM OUTLETS MONTREAL ▪ Phase I – 350,000 sf. ▪ Opened Oct. 30, 2014 ▪ Additional 75 acres of potential development adjacent to the site to include retail, residential, hotel, etc. Actively sourcing 2 additional Canadian locations SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 44
TORONTO PREMIUM OULETS 144,000 SQUARE FOOT EXPANSION CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 45
SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 46
PREMIUM OUTLETS MONTREAL 52 ACRE SHOPPING CENTRE + 75 ACRES OF ADJACENT LANDS CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 47
LAVAL CENTRE MONTREAL ▪ Lands designated by City as “Centre-Ville”, due to highway and transit access ▪ 43 acre site anchored by a 160,000 square foot Walmart Supercentre ▪ Parcels of land sold to others for seniors housing, hotel and office development of 400,000 sf. ▪ JV for 290,000 sf. of rental residential in 338 units with Jadco ▪ Remaining 15 acres to be developed with up to 2M sf. of mixed-use SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 48
LAVAL CENTRE MONTREAL CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 49
LAVAL CENTRE MONTREAL PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 50
LAVAL CENTRE
MONTREAL
EQUINOXE DANIEL-JOHNSON APARTMENT
RENDERING REALITY
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 51POINTE-CLAIRE MONTREAL ▪ Walmart and Home Depot anchored site in West Montreal purchased in 2016 ▪ Very well-located site – transit (new light rail transit line to downtown) and road access ▪ Master planning activities moving forward with strong support from council ▪ Secured zoning for a multitude of uses including residential, seniors housing and office – 1M to 1.5M sf. on the perimeter of the property ▪ First rental apartment building expected to be completed in 2022 ▪ Significant NAV accretion potential from entitlements achieved to date SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 52
POINTE-CLAIRE MONTREAL CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 53
POINTE-CLAIRE MONTREAL PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 54
CHILLIWACK MALL
VANCOUVER
▪ Official Community Plan and Rezoning
Applications submitted to the City of
Chilliwack April 2019
▪ Proposal includes demolition of the current
enclosed mall to accommodate:
• 162,798 sf of Commercial
• 2.63 acres of Residential
• 3 6-storey residential towers with 200+
units
• Structured at grade parking
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 55CHILLIWACK MALL VANCOUVER CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 56
CHILLIWACK MALL VANCOUVER PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 57
CHILLIWACK MALL VANCOUVER PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 58
BRADFORD TORONTO ▪ 57 acre Walmart-anchored site in the growing community of Bradford ▪ Currently a 280,000 sf shopping centre. Potential for 425,00 sf. ▪ Preliminary intensification plans include a hotel, a seniors residence, town homes, and mid-rise residential apartments and/or condominiums ▪ Early consultations are underway for municipal approval SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 59
BRADFORD TORONTO CURRENT SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 60
BRADFORD BRADFORD TORONTO PLAN SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 61
DEVELOPMENT
+
168
RECURRING
NON-RECURRING
DEVELOPMENT PROJECTS
33 49 86+
UNDERWAY ACTIVE FUTURE
RECURRING
NON-RETAIL
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 62DEVELOPMENT
+
124 RECURRING NON-RETAIL
APARTMENT RENTALS (38+)
SENIORS RESIDENCES (45+)
25 36 63+
UNDERWAY ACTIVE FUTURE
SMARTCENTRES REIT OFFICE (3) SELF-STORAGE (38+)
Q1 2019 INVESTOR PRESENTATION 63DEVELOPMENT
+
44
RECURRING NON-RECURRING
8 13 23+
CONDOMINIUMS (29+) & TOWNHOUSES (15+)
UNDERWAY ACTIVE FUTURE
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 64DEVELOPMENT
MAJOR MIXED-USE REAL ESTATE INITIATIVES
Estimated Costs ($M) Estimated Gain on Final Sale
GLA Completion SRU 100%
Site Project Type ('000sf) / Year % Share Share SRU Share Yield Profit % SRU Share Timing
Units
1. VMC (Office Towers) a. KPMG (T#1) Office 360sf 2016 50% $180 $90.0 5.7% — — —
b. PWC (T#2) Office 105sf 2019 50% $65 $32.5 4.5%-5.5% — — —
c. Office (T#3) Office 600sf 2024 50% $375 $187.5 4.8%-5.5% — — —
d. Office (T#4) Office 300sf 2026 50% $210 $105.0 4.8%-5.5% — — —
(1)
2. Montreal Premium Outlets Phase II (JV) Retail 140sf 2022-2023 50% $56 $28.0 9%-10% — — —
(Simon Property Group)
3. New Premium Outlets Premium (JV) Retail 360sf 2022 50% $136 $68.0 8.0%-8.5% — — —
(Simon Property Group)
(2)
4. Laval Centre Jadco (2 Bldgs) Apartments 338 Units 2020-2022 50% $82 $41.0 5.3%-5.8% — — —
5. VMC (Condos) CentreCourt Transit City 1 551 Units 2020-2021 25% $181 $45.3 N/A 25%-30% 25% 2020-2021
CentreCourt Transit City 2 559 Units 2020-2021 25% $189 $47.3 N/A 25%-30% 25% 2020-2021
CentreCourt Transit City 3 631 Units 2021 25% $190 $47.5 N/A 20%-25% 25% 2021
CentreCourt Transit City 4 494 Units 2023 25% $200 $50.0 N/A 20%-25% 25% 2023
CentreCourt Transit City 5 519 Units 2023 25% $200 $50.0 N/A 20%-25% 25% 2023
(2)
6. VMC (Apartments) VMC Rental Apartments Apartments 450 Units 2023-2024 50% $220 $110.0 4.2%-4.8% — — —
7. Vaughan NW Fieldgate Low/Mid Rise 230-300 2021-2022 50% $150-$200 $75-$100 N/A 15%-20% 50% 2021-2022
Residential Units
(2)
8. Ottawa Laurentian JV Partner Apartments/ 400 Units 2022 50% $150 $75.0 6.0%-7.0% — — —
Retirement
Residence
(2)
9. Multiple Locations Self-Storage (JV) Self-Storage 500sf built 2019-2025 50% $60M per $30M per 7.0%-8.5% — — —
(6 Approved Projects – (SmartStop) (4 to 5 new per year in year in each year in each
Toronto (Leaside), Oshawa, facilities each each of of years 1-5 of years 1-5
Brampton (2 projects), year) years 1-5
Vaughan, Toronto
(Scarborough))
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 65DEVELOPMENT
MAJOR MIXED-USE REAL ESTATE INITIATIVES
Estimated Costs ($M) Estimated Gain on Final Sale
GLA Completion SRU 100%
Site Project Type ('000sf) / Year % Share Share SRU Share Yield Profit % SRU Share Timing
Units
10. StudioCentre (Toronto) SRU-Penguin JV Mixed-Use 150sf 2022-2023 50% $53 $26.5 6.0%-7.0% — — —
(Office, Studio,
Hotel)
(2)
11. Pointe-Claire (Apartments) Rental Apartments Apartments 480 Units 2022-2023 50% $155 $77.4 4.4%-5.0% — — —
(2 Bldgs)
12. Pointe-Claire (Condo) Condo Condo 200 Units 2024 50% $55 $27.4 N/A 10%-15% 50% 2024
(2)
13. Multiple Locations Retirement Living Retirement 600sf built 2022-2025 50% $100M per $50M per 6.0%-7.5% — — —
(3 Approved Projects – Residences Residences & per year in year per site year per site
Vaughan (2 projects), (JV) (Revera) Seniors each of in each of in each of
Oakville) Apartments years 1-5 years 1-5 years 1-5
(3 to 5 new
facilities each
year)
Notes:
(1) The Phase II expansion for the Montreal Premium Outlets is included in the future development pipeline as Developments.
(2) Stabilization is estimated to be 1 to 3 years after completion.
(3) Estimated Transactional FFO Gains on Sale related to parcel sales of land into Joint Ventures estimated at 1%-2% of annual FFO at SmartCentres' ownership share.
In addition to the projects set out in the table above (with the exception of the projects listed in Note 1), SmartCentres' pipeline also includes approximately 3.2 million square feet of future developments as set
out in the table shown on the “Future Earnouts and Developments” section. Also in addition to the above, SmartCentres has a further mixed-use development pipeline estimated at 4.5 million square feet in
projects that are underway or active. Further, SmartCentres will initiate activities in the short-term to work towards development of a further estimated 12.5 million to 15 million square feet in mixed-use
initiatives that will be completed in the longer-term.
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 66DEVELOPMENT
PLANNERS /
CONSTRUCTION
DEVELOPERS
151 IN-HOUSE
DEVELOPMENT-RELATED
RESOURCES
ENGINEERS
GOVERNMENT
RELATIONS
ENVIRONMENTAL /
GEOTECH
SPECIALISTS
LEASING
ARCHITECTS
LAWYERS
FINANCE / FINANCIAL
ANALYSTS
MARKETING
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 67DEVELOPMENT STRONG STRATEGIC RELATIONSHIPS SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 68
WALMART CANADA PARTNERSHIP
115 WALMART ANCHORED SHOPPING CENTRES
25
YEARS
IN CANADA
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 69DEVELOPMENT
WALMART CANADA
PARTNERSHIP
NUMBER OF
▪ Walmart Canada Attributes WALMART STORES
• Value pricing and fresh food generates IN CANADA
huge traffic
• Customer traffic and food market share
increasing 227 296
• Benefiting from the closure of Target and
Sears – little competition in the discount
general merchandise space 14 14
98 101
▪ 76% of Canadians live ≤ 10 km of a
Walmart
Supercentres (339)* Total Walmart Stores (411)*
Other SmartCentres Shadow SmartCentres Tenants
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION * Company source as at May 31, 2019 70DEVELOPMENT MITCHELL GOLDHAR PARTNERSHIP ▪ JV Partner • Vaughan Metropolitan Centre • StudioCentre / Eastern Avenue • Salmon Arm SmartCentre ▪ Consultant on development and mixed- use projects ▪ Executive Chairman, Trustee and Investment Committee member SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 71
DEVELOPMENT SIMON PROPERTY GROUP PARTNERSHIP ▪ Largest public real estate company in the U.S. ▪ Engaged primarily in retail real estate properties including regional malls, Premium Outlets and The Mills® ▪ Exceptional relationships with the world’s largest retailers provides strong tenant base for Premium sites ▪ Canada is part of a continuing global expansion SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 72
DEVELOPMENT CENTRECOURT PARTNERSHIP ▪ Partner for 5 sold-out Transit City condominium towers at VMC • GTA focused: • 2,000 units completed • 4,000 units under active construction ▪ Initial discussions for other projects SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 73
DEVELOPMENT REVERA PARTNERSHIP PARTNERSHIP ▪ Leading owner, operator and investor in the senior living sector through various partnerships own over 500 properties in Canada, the United States, and the United Kingdom serving over 55,000 seniors ▪ Joint venture with Revera, first 3 sites announced – 2 in Vaughan and 1 in Oakville ▪ Expect to complete 5 projects per year ▪ Typical building size is 140,000 sf., with investment including land of up to $100M per site ▪ Yields in the 6.0% - 8.0% range on cost SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 74
DEVELOPMENT SMARTSTOP PARTNERSHIP ▪ Diversified real estate company focused on self-storage, student and senior housing. Portfolio currently includes 80,000 self storage units, 9.4M rentable square feet, and $1.8B of real estate assets under management. Buildings on average 100,000 to 130,000 sf. ▪ Development yield expected to be 7.0% to 8.5% ▪ Additional returns from sale of land into the JV ▪ 6 sites approved in the GTA, with expansion across country planned SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 75
DEVELOPMENT JADCO PARTNERSHIP ▪ Well reputed family-owned business ▪ Has gained a strong foothold in the residential sector in the Greater Montreal Area ▪ Strengths lie in its commitment to excellence in building exceptional living and mixed-used environments ▪ Diversified portfolio comprised of luxury residential, upscale rental and mixed-used projects such as Paton1, Quintessence and Équinoxe SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 76
DEVELOPMENT FIELDGATE HOMES PARTNERSHIP ▪ Private company in residential development business for more than 60 years ▪ Primarily focused on GTA ▪ Over 12,000 homes built SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 77
DEVELOPMENT PENGUIN PICKUP PARTNERSHIP ▪ Through this partnership, we are the only omnichannel landlord ▪ Penguin PickUp enables retailers and brands to access customers in highly dense areas where real-estate and logistics are a challenge ▪ Over 100 locations across Canada, and rapidly expanding SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 78
RETAIL PORTFOLIO
SF
34.4M
INCOME-PRODUCING PORTFOLIO WITH
INDUSTRY-LEADING OCCUPANCY
100% 15 YEARS
98%
OF SITES CONTAIN A AVERAGE AGE AVERAGE
GROCERY/PHARMACY OF PROPERTIES OCCUPANCY
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 79RETAIL PORTFOLIO
THE CANADIAN RETAIL LANDSCAPE IS UNIQUE
✓ VALUE-ORIENTED CONSUMERS
✓ STRONG DISCOUNT & LUXURY SEGMENTS
✓ RATIONALIZED DEPARTMENT STORES
✓ LESS RETAIL PER PERSON
✓ LOWER E-COMMERCE PENETRATION
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 80RETAIL PORTFOLIO
OUR MARKET DIVERSITY IS A STRENGTH
CENTRES NOI OCCUPANCY
# % %
PRIMARY
100 72 97.8
LARGE
SECONDARY 34 18 98.2
MEDIUM
SECONDARY 23 10 99.0
TOTAL 157 100 98.0
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 81RETAIL PORTFOLIO
TOP TEN TENANTS:
WE HAVE STABLE 1.
HIGH-QUALITY TENANTS 2.
3.
4.
5.
RENTAL INCOME
6.
48% 75% 7.
FROM TOP 10 FROM TOP 25
TENANTS TENANTS 8.
9.
10.
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 82RETAIL PORTFOLIO
EXPANDING TENANTS:
… AND CONTINUED
RETAIL EXPANSION
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 83RETAIL PORTFOLIO
WHILE CONTINUOUSLY UPGRADING OUR SERVICES
ELECTRIC CAR
PENGUIN PICKUP
CHARGING STATIONS
DIGITAL SIGNS BUILDING SYSTEMS
WIFI NETWORKS MOBILE ADVERTISING
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 84FINANCIAL HIGHLIGHTS
TOTAL RETURNS TO UNIT HOLDERS CONTINUE TO GROW
$1,200
15.4% AVERAGE ANNUAL RETURN SINCE IPO
(as of May 31, 2019)
$1,071.28
$1,000
$800
$600
$544.10
$400 $394.95
$200
$0
SmartCentres TSX Capped REIT TSX Composite
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 85FINANCIAL HIGHLIGHTS
CONTINUED GROWTH IN RENTAL REVENUE & FFO PER UNIT
(AS OF DECEMBER 31, 2018)
RENTAL REVENUE FFO
(in millions of $) ($ per unit)
6.8% CAGR 4.0% CAGR
since 2014 since 2014
2.28
790 2.17 2.20
747 2.10
728
1.95
670
608
2014 2015 2016 2017 2018 2014 2015 2016* 2017 2018
SMARTCENTRES REIT * Excludes $0.06 per unit of non-recurring income
Q1 2019 INVESTOR PRESENTATION 86FINANCIAL HIGHLIGHTS
TOTAL ASSETS VALUED AT $9.6B
TOTAL ASSETS
(in billions of $)
31.8% CAGR 9.5 9.6
since 2002
9.4
8.5 8.7
7.1 7.1
6.5
6.0
4.2 4.2 4.4
3.6 3.9
2.6
1.0
0.1 0.2
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1
2019
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 87FINANCIAL HIGHLIGHTS BALANCE SHEET SUPPORTS EXTENSIVE ASSET GROWTH ▪ Unencumbered pool at $4.5B = flexibility ▪ Ready access to mortgage and unsecured debt capital when needed = strong liquidity ▪ Payout ratio to ACFO with one-time adjustment at 91.4% as of March 31, 2019 ▪ Current interest rates still lower than maturing rates despite Bank of Canada rate hikes in 2018, which continue to help improve FFO SMARTCENTRES REIT Q1 2019 INVESTOR PRESENTATION 88
FINANCIAL HIGHLIGHTS
DEBT / MATURITY LEVERAGE
DEBT MATURITY
(in millions of $)
400 371
350
320
300
300 275
250 250 250
203 200
200 180
160
140
119
100 87
100 80
45
3
0
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 BEYOND
Secured Debt Bank Loans Unsecured Debentures
▪ Interest costs on refinancing available with 10 year unsecured rates around 4% and secured rates below that
▪ Interest Coverage: 3.3X (Target: 2.5X – 3.0X)
▪ Debt to adjusted EBITDA: 8.0X (Target: 8.0X – 8.5X)
▪ Unencumbered pool: $4.5B (2.0X unsecured coverage) (Target: 1.3X unsecured coverage)
▪ Debt to GBV: 49.0% (Target: 50% - 60% long-term trend to continue to de-lever)
▪ Debt to Aggregate Assets: 42.2%
▪ Weighted Avg Interest Rate (Secured Debt): 4.07%
▪ Weighted Avg Term to Maturity (Secured Debt): 4.6 years
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION ▪ DBRS rating of BBB with a Stable trend 89FINANCIAL HIGHLIGHTS
SMARTCENTRES HAS A STABLE RETAIL INCOME BASE…
LEASE MATURITY BY AREA
(in millions of square feet)
Average roll of 2.3M sf. annually (6.8% of total GLA per year)
1.6
1.7
2.3
1.6
1.9
0.9 0.6
0.8 0.7
0.7
0.8 0.4
0.7 0.7 0.6
1.9 2.0
1.4 1.4 0.2 0.2
1.1 0.5 1.2
0.7 0.7 0.6 0.5 0.8
- 0.3 0.1
- -
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Month-to- Vacant
month
Walmart Other Anchor Non-anchor
▪ Average lease term of 5.3 years ▪ Average remaining lease term excluding Walmart is 4.6 years
▪ Average remaining lease term of 6.3 years for Walmart, ▪ 2,720,262 sf. or 76.1% of 2019 lease maturities have been
with multiple renewal options of up to 80 years renewed or near completion
▪ Average “same property” NOI growth is 1.0% to 1.5% p.a.
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 90FINANCIAL HIGHLIGHTS
LEVERAGE PROFILE
Mar. 31 Dec. 31 Dec. 31 Dec. 31
2019 2018 2017 2016
Debt to Aggregate Assets 42.2%(1) 43.9% 45.4%(2) 44.3%
Secured Debt to Aggregate Assets 20.0% 23.1% 26.1% 29.5%
Unencumbered Assets $4.5B $4.3B $3.4B $2.7B
Debt to Adjusted EBITDA 8.0X 8.2X 8.4X 8.4X
Interest Coverage 3.3X 3.3X 3.1X 3.1X
Liquidity: Cash Resources $675M $399M $646M $355M
Weighted Average Interest Rate(3) 4.07% 3.93% 3.87% 3.79%
Weighted Average Term to Maturity(3) 4.6 yrs 4.4 yrs 4.6 yrs 4.8 yrs
(1) Including the recent $350M debenture issuance and full utilization of proceeds subsequent to year-end by April 2019, Debt to Aggregate
Assets at 41.7%
(2) Leverage increased during 2017 in support of the OneREIT acquisition
(3) Secured Debt
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 91FINANCIAL HIGHLIGHTS
CONSERVATIVE CAPITAL STRUCTURE
Secured Mortgage Financing
19.4% Amount - $1.9B
Weighted Avg Interest Rate – 4.07%
$9.8B
Weighted Avg Term to Maturity – 4.6 years Total Enterprise Value
Unsecured Debentures
19.0% Amount - $1.9B
Weighted Avg Interest Rate – 3.29%
Focused on:
Weighted Avg Term to Maturity – 4.6 years
▪ Lowering interest
Debt on Equity Accounted
Investments
rates on renewals
1.3% Amount - $130M
Weighted Avg Interest Rate – 3.79%
Weighted Avg Term to Maturity – 13.2 years ▪ Maintaining maximum flexibility
Operating Lines / Bank Loans /
Outstanding LC’s
▪ Reducing leverage
3.9% Operating Line – $nil over time
Bank Loans – $320M
Letters of Credit – $64M
▪ Rebalancing unsecured and
Equity (as at May 31, 2019)
Units Outstanding – 170M secured debt ratios
56.4% Share Price – $32.66
Market Capitalization – $5.5B
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 92FINANCIAL HIGHLIGHTS
STABLE CASHFLOW
PAYOUT RATIO TO 83.1% 81.8% 83.0%
ACFO WITH ONE-TIME
ADJUSTMENT
2014 2015 2016 2017 2018
($ per unit)
FFO(1) 1.95 2.10 2.17(3) 2.23 2.28
ACFO(2) NP NP 2.00(3) 2.10 2.13
Distributions 1.56 1.61 1.66 1.71 1.76
(1) FFO with one-time adjustment and before Transactional FFO
(2) ACFO with one-time adjustment
(3) Excludes $0.06 per unit of non-recurring income
▪ Distributions fully funded from operating cashflow
▪ Annual distribution increases announced in each of 2014, 2015, 2016, 2017, and 2018 of $0.05 per unit.
Current annual distribution per unit is $1.80
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 93SUMMARY
GROWTH STRATEGY
168 + APARTMENT RENTALS (38+)
SENIORS RESIDENCES (45+)
DEVELOPMENT
PROJECTS ACROSS
76 + OFFICE (3) SELF-STORAGE (38+)
PROPERTIES
SMARTCENTRES REIT
Q1 2019 INVESTOR PRESENTATION 94
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