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

Portfolio overview and growth strategy

• Portfolio includes 305 properties valued at $5.7B, with 81% of annual minimum rent from grocery-anchored assets and 59% from a strategic partner in grocery retail.

• Development pipeline features 26 projects, 73% in key urban markets (VECTOM), and 7 completed major projects.

• Recent acquisition of the remaining 50% of Zephyr in Vancouver for $133M, adding 330 rental units and retail space anchored by Safeway.

• Portfolio is necessity-based, generating stable cash flow, with 82% of AMR from essential retailers and a weighted average lease term of 8.6 years.

• Committed occupancy remains high, consistently above 95% over recent quarters.

Financial performance and capital management

• Q3 2024 property revenue increased 4.6% year-over-year to $114.5M, with SANOI up 2.6%.

• FFO per unit was stable at $0.31, while AFFO per unit declined 3.6% to $0.27.

• Operating income attributable to unitholders decreased 4.4% due to higher compensation costs and interest expense, partially offset by revenue growth.

• Maintains $2.7B in unencumbered assets and $677M in available liquidity, with a debt to adjusted EBITDA of 7.72x and debt to gross fair value of 42.9%.

• BBB (low) credit rating with a positive trend from Morningstar DBRS; well-laddered debt maturity profile and multiple sources of capital.

Development and value creation

• Major development pipeline includes 26 projects, with near-term focus on The Marlstone (Halifax), 1780 East Broadway (Vancouver), and Belmont Market Phase II (Victoria).

• Pipeline has potential to add over 12,000 residential units and 1M+ sq.ft. of commercial GLA, with $5.0-6.8B in projected development costs.

• 73% of major development pipeline is in VECTOM markets; 15% of pipeline properties have zoning approval, another 15% have applications submitted.

• Non-major developments and modernizations, such as Burlington Plaza, target yield on cost of 6.9%-8.0%.