Crombie Real Estate Investment Trust (CRR.UN) Investor Presentation summary

Portfolio overview and growth strategy

• Portfolio consists of 304 properties valued at $5.7B, with 80% of annual minimum rent from grocery-anchored assets and 59% from Empire, a strategic partner.

• 26 development pipeline projects, with 73% located in key urban markets (VECTOM), and robust value-enhancing opportunities.

• Weighted average lease term is 8.6 years, with Empire leases averaging 11 years, supporting long-term stability.

• Committed occupancy remains high at 98% as of Q2 2024, reflecting operational excellence.

• 82% of annual minimum rent is generated from necessity-based retailers, ensuring stable cash flow.

Financial performance and capital management

• Q2 2024 property revenue increased 3.1% year-over-year to $116.4M, with SANOI up 3.4%.

• FFO per unit rose 23.1% to $0.32, and AFFO per unit increased 27.3% to $0.28 in Q2 2024.

• Debt to adjusted EBITDA stands at 7.68x, and debt to gross fair value is 42.6%, with $2.7B in unencumbered assets.

• Available liquidity reached $707M, and interest coverage ratio improved to 3.47x.

• Maintains a BBB (low) credit rating with a positive trend from Morningstar DBRS.

Development pipeline and value creation

• Near-term pipeline includes 3 major projects totaling 1,461 residential units and 105,000 sq.ft. commercial GLA.

• Medium/long-term pipeline projects could add 9,830 residential units and 1,039,000 sq.ft. commercial GLA.

• Projected development costs for the pipeline are $5.0–6.8B, with potential value creation of $10.7–12.5B+.

• 15% of pipeline properties have zoning approval, and another 15% have zoning applications submitted.

• Non-major developments and modernizations are projected to yield 5.5%–10.7% on cost.