Summit Industrial Income REIT (SMU) 2013年年度報告「TSX」.pdf

1、SUMMIT INDUSTRIAL INCOME REIT Annual Report 2013is an unincorporated open-ended trust focused on growing and managing a portfolio of light industrial properties across Canada.Currently the REIT owns 30 properties well-located in five Canadian provinces aggregating approximately 3.3 million square fe

2、et of gross leaseable area.The REIT is managed by Sigma Asset Management Limited,composed of an experienced and proven team of real estate professionals responsible for a ten-year 20%compound annual return generated for investors with the former Summit REIT.Summit Industrial Income Real Estate Inves

3、tment TrustOperating Highlights Acquired 22 properties for$223.8 million to date at average cap rate of 6.87%Attractive financing for acquisitions Portfolio growth highly accretive to FFO&AFFO per unit Trust Units moved to TSX effective Nov.11,2013 Management fully aligned with 12%principals interes

4、tYear Ended December 31,($,000 except per Unit amounts)2013 2012Revenue 22,047 2,497Portfolio Occupancy 98.9%97.0%Net Operating Income 16,492 1,980FFO 9,744 906FFO per Unit$0.596$0.395AFFO$8,935 906AFFO per Unit$0.546$0.395AFFO Payout Ratio 74.7%-As at December 31,2013 2012Debt to Gross Book Value 6

5、0.9%47.0%Weighted Average Mortgage Interest Rate 3.68%3.89%Weighted Average Mortgage Term to Maturity 4.95 yrs 4.70 yrsWeighted Average Lease Term to Maturity 6.0 yrs 6.4 yrsWeighted Average Units Outstanding(basic)16,356 2,2942013 includes additional one-time,non-recurring general and administrativ

6、e costs of$197,000 or$0.011 FFO per unit,in the fourth quarter relating to the REITs move from the TSXV to the TSX on November 11,2013.2013 Financial Highlights1We are very pleased with our growth and progress through our first full year managing Summit IIs assets and business.We significantly expan

7、ded,diversified and strengthened our property portfolio with very accretive acquisitions and related financings.We generated strong quarter-over-quarter growth through the year in all our performance benchmarks,and built a solid business and operating foundation with experience and depth.Looking ahe

8、ad,we are confident we will build on this progress for the benefit of our Unitholders.Message to UnitholdersStrong Portfolio GrowthWe significantly expanded and strengthened our property portfolio in 2013 with the acquisition of twenty-two properties well-located in Edmonton,Alberta,the Greater Toro

9、nto Area,the Greater Montreal Region and Moncton,New Brunswick,aggregating approximately 2.7 million square feet of gross leaseable area(GLA).The total purchase price of$223.8 million was funded by cash raised in a successful offering of Trust Units completed on February 26,2013 raising$75.1 million

10、 in gross proceeds,new mortgage financings totaling$104.0 million,and the assumption of existing mortgages of$18.4 million.The average capitalization rate on the acquired properties was a very solid 6.87%.With the completion of these acquisitions our total property portfolio grew to thirty propertie

11、s at year end totaling approximately 3.3 million square feet of GLA.The properties have solid,credit-worthy tenants,and all are well-located in strong urban markets near major rail,highway and airport transportation links.Our portfolio is comprised James TadesonLead Trustee&Chair of the Audit Commit

12、teeKimberley G.HillVice President,Asset ManagementPaul Dykeman Chief Executive OfficerLou Maroun Chairman&TrusteeSaul Shulman Trustee&Chair of Governance CommitteeRoss DrakeChief Financial OfficerLarry MorassuttiTrustee&Member of Audit&Governance CommitteeJon Robbins Vice President,Investments2 SUMM

13、IT II REIT 2013 ANNUAL REPORTof state-of-the-art facilities with high ceiling height,ample loading docks,extensive parking capacity,and upgraded fire detection and security systems.Occupancies across the portfolio stood at a nearly-full 98.9%at December 31,2013 with a weighted average term to maturi

14、ty for the total lease portfolio of 6.0 years.Strong PerformanceAs a result of our considerable growth in 2013,and our strong operating performance,we generated stable and significant growth in quarter-over-quarter results through the year.Operating revenues rose consistently,finishing the year at$2

15、2.0 million,up from$2.5 million in 2012.With this growth,our net operating income increased to$16.5 million,up from$2.0 million in the prior year.Our Adjusted Funds from Operations(AFFO)rose to$8.9 million or$0.546 per Unit compared to$0.9 million or$0.395 per unit in 2012.We were also pleased that

16、our revenues,FFO and AFFO for the year exceeded the forecast we presented in the prospectus issued with our February 2013 equity offering.Most importantly,our payout ratios continued to strengthen through 2013 with our AFFO payout ratio standing at a very conservative 74.7%for the year.We began payi

17、ng cash distributions at an annual-ized rate of approximately$0.49 cents per Unit on March 15,2013.Including the benefit of our Distribution Reinvestment Plan(DRIP),our effective AFFO payout ratio was 65%for the year.Our balance sheet and liquidity position remained strong at year end with our lever

18、age ratio a conservative 60.9%,an attractive weighted average effective interest rate on our mortgage portfolio of 3.68%,and a weighted average term to maturity of 5.0 years.Debt service and interest coverage ratios were also solid at 1.93 times and 2.74 times,respectively.In August 2013 we increase

19、d our credit facility to$68 million,of which$62.8 million was drawn as of December 31,2013.If we were SUMMIT II REIT 2013 ANNUAL REPORT 3to increase our borrowing to the maximum 65%allowed under our Declaration of Trust,we had the capacity to purchase approximately$37 million in new properties as at

20、 year end.It is our intention,however,to operate in the mid-50%leverage level over the long term.Strong Leasing ActivityDuring the year we made significant progress in leasing the ap-proximately 287,000 square feet of head lease space we acquired when we took over management of the REIT in September

21、 2012.As of the year-end,long-term leases have been secured for 185,604 square feet of this space,and offers are under negotiation for another 77,243 square feet with tenants currently in month-to-month occupancy.We have already renewed 123,252 square feet,or 73.3%of the 168,255 square feet of space

22、 set to expire in 2014.We were also pleased to have resolved a number of issues with one of our underperforming properties located at 501 Palladium Drive in Ottawa,Ontario.When we acquired this undervalued property,we were confident we could enhance the assets value by finding new,credit-worthy and

23、long-term tenants with improved lease covenants to replace a tenant who was only occupying the office portion of the building.Subsequent to the year-end we arranged leases for the majority of the space with two new tenants,including options for the remaining space.Importantly,we have negotiated a$4.

24、5 million payment from the departing tenant to cover our costs related to temporary vacancies and re-leasing.This transaction is an excel-lent example of how our proven asset and property management programs are creating real value for our Unitholders.Strong Sponsorship Under the terms of our Manage

25、ment Agreement,Sigma Asset Management Limited(the Manager)can elect to take the fees pay-able to it in the form of Trust Units rather than in cash.The Manager used its acquisition fee proceeds to acquire Units from our February equity offering while certain members of the Manager also purchased Unit

26、s.In addition,members of the Manager,Senior Executives and other insiders continued to acquire Units purchased on the Toronto Stock Exchange.As a result,at year-end the Manager owned a 6.3%interest in the REIT while certain senior executives of the Manager and other insiders own a 5.8%interest,for a

27、 total of 12.1%.The significant ownership of the Manager and employees strongly aligns our interests with all Unitholders,and ensures our efforts are entirely focused on creating value.We were also very pleased to have our Trust Units graduate and begin trading on the Toronto Stock Exchange effectiv

28、e November 11,2013.We believe this move will provide the REIT with increased access to a wider and deeper community of investors,and provide enhanced 4 trading liquidity for all our Unitholders.We are proud to now have three research analysts formally covering Summit II.Strong Future Looking ahead,w

29、e are confi dent we will build on this progress for the benefi t of our Unitholders.First,we will prudently acquire high quality light industrial properties in our targeted Canadian urban markets.We will purchase newer,well maintained properties that require little or no capital investment,and we wi

30、ll purchase properties at below replacement cost with rents below market where we can generate increased cash fl ows through our proven leasing programs.All property acquisitions will be accre-tive,and with current cap rates well in excess of todays low cost debt fi nancing,we believe we will contin

31、ue to lock in very accretive spreads on our purchases.Our near-term geographic focus will be on building on our substan-tial portfolio in the Greater Toronto Area where we believe market fundamentals are ripe for creating value.Recent research indicated that Toronto is experiencing the lowest availa

32、bility and vacancy rate in the country at 4.6%and 2.6%,respectively,with absorption outpacing new supply.With rising development charges,increased construc-tion costs and land preservation initiatives,there are signifi cant Net Operating Income($000)OUR NET OPERATING INCOME INCREASED TO$16.5 MILLION

33、,UP FROM$2.0 MILLION IN THE PRIOR YEARQ4 2013 5,330Q3 2013 4,634Q2 2013 4,419Q1 2013 2,109Q4 2012 1,237SUMMIT II REIT 2013 ANNUAL REPORT 5Our portfolio iscomposed of state-of-the-art facilities withhigh ceiling height,ample loading docks,extensive parking capacity,and upgradedfi re detection andsecu

34、rity systemsconstraints on future new supply.With these strong fundamentals,we believe there will be upward pressure on rental rates in the GTA industrial market,and we believe it is a perfect time for us to expand our presence in this strong and growing market.We believe our cash flows will also gr

35、ow organically as we capital-ize on the continuing strong fundamentals in the light industrial sector.Light industrial properties have demonstrated significant strength and stability for decades,driven by such characteristics as low market rent volatility,reduced operating costs,and more generic-use

36、 space that is highly marketable.In addition,the scale and diversity of the tenant base occupying our properties is broad and generally tracks the overall economy,reducing risk and providing predictable and consistent cash flow.Finally,capital expenditure and maintenance requirements,as well as leas

37、ehold improvement and tenant inducement costs,are much lower than other types of real estate.To capitalize on these strong fundamentals,we are building a market leading operating company for the REIT and implementing best-practice procedures such as standard leases with built-in rent escalations,and

38、 working with our tenants to ensure they have the best properties to suit their needs.With sound tenant covenants and minimal capital investment requirements,we believe our properties will deliver strong,sustainable and growing cash flows over the long term.In addition,as our portfolio grows,we expe

39、ct to see significant economies of scale and operating synergies that will reduce our overall operating costs,also benefiting future cash flows.Finally,in our acquisition program we will prudently target under-performing light industrial assets that we believe can see improved performance with some

40、development or re-development.To reduce unitholder risk,we will work with third-parties to perform these activities and will consider rolling the properties into the REIT once they are stabilized.At Summit,we have decades of experience developing light industrial properties,and we have an extensive

41、network of local developers who can perform such work for us.These investments can generate higher returns for our Unitholders,but rest assured we will be very conservative and prudent in this element of our growth program.In summary,2013 was a very active and successful year for Summit II,but we ar

42、e confident we have only begun to grow.With strong indus-try fundamentals,best-in-class services,and a proven management team with decades of experience in the industrial real estate sector,we are well-positioned to deliver increasing value to our Unitholders for years to come.Lou Maroun Paul Dykema

43、nCHAIRMAN PRESIDENT&CEORevenue From Income Properties($000)REVENUES FROM INCOME PROPERTIES ROSE CONSISTENTLY,FINISHING THE YEAR AT$22.0 MILLION,UP FROM$2.4 MILLION IN 2012Q4 2013 7,570Q3 2013 6,139Q2 2013 5,655Q1 2013 2,683Q4 2012 1,670Adjusted Funds From Operations($000)(AFFO)ROSE TO$8.9 MILLION OR

44、$0.546 PER UNIT COMPARED TO$0.9 MILLION OR$0.395 PER UNIT IN 2012Q4 2013 2,677Q3 2013 2,595Q2 2013 2,502Q1 2013 1,161Q4 2012 7206 SUMMIT II REIT 2013 ANNUAL REPORTThe properties have solid,credit-worthy tenants,and all are well-located in strong urban markets near major rail,highway and airport tran

45、sportation links730 PROPERTIES3.3 MILLION SQUARE FEET GLABritish Columbia2 properties21,700 sq.ft.Alberta3 properties84,200 sq.ft.Ontario19 properties2.8M sq.ft.Quebec5 properties308,000 sq.ft.Atlantic Canada1 property169,500 sq.ft.A Strong and Growing PortfolioA Proven Three-Part Growth Strategy1OR

46、GANIC GROWTH:Capitalizeonstrong industry fundamentalsIndustry-leadingoperating companyIncreasingoccupancies and average rentsCaptureeconomiesof scale as portfolio grows2EXTERNAL GROWTH:Acquirehighqualitylight industrial propertiesPricebelowreplacement costModern,well-maintained,single or multi-tenan

47、tNeartermfocusonstrong and growing GTA region3DEVELOPMENT PARTNERSHIPS:Establishpartnerships with experienced property developers Acquireandre-develop underperforming propertiesVendpropertiesintoREITwhenstabilizedPrudentinvestmentsSummit II REIT At-A-GlanceStrong Industry Fundamentals:The Canadian l

48、ight industrial real estate sector possesses strong fundamentals well-suited to generating stable,secure and growing cash flows:Lowrentvolatility Reducedoperatingcosts Genericandhighlymarketablespace Lowcapital,maintenance,leaseholdimprovement and tenant inducement costs8 A Well Balanced Mortgage Po

49、rtfolioWE SIGNIFICANTLY EXPANDED AND STRENGTHENED OUR PROPERTY PORTFOLIO IN 2013 WITH THE ACQUISITION OF TWENTY-TWO WELL-LOCATED PROPERTIES Principal Repayments$millions$60 _$50 _$40 _$30 _$20 _$10 _$0 _Weighted Average Interest Rate_ 4.00%_ 3.50%_ 3.00%_ 2.50%_ 2.00%_ 1.50%_ 1.00%_ 0.50%_ 0.00%2014

50、 2015 2016 2017 2018 ThereafterA Well Balanced LeasePortfolioDURING THE YEAR WE MADE SIGNIFICANT PROGRESS IN LEASING THE APPROXIMATELY 287,000 SQUARE FEET OF HEAD LEASE SPACE WE ACQUIRED WHEN WE TOOK OVER MANAGEMENT OF THE REIT IN SEPTEMBER 2012LeaseRollover(square feet)2,000.00 _1,800.00 _1,600.00

51、_1,400.00 _1,200.00 _1,000.00 _800.00 _600.00 _400.00 _200.00 _0.00 _2014 2015 2016 2017 2018 Thereafter54.8%8.9%10.8%13.5%9.3%1.6%Converter Core%OF TOTAL TENANT LOCATION GLA BASE RENTVan-Rob Inc.Aurora ON 322,187 10.1%SMART Technologies*Ottawa ON 193,711 7.3%McKesson Canada Moncton NB 169,474 6.9%C

52、anplas Industries Barrie ON 216,460 5.5%Giant Tiger Stores Brockville ON 68,093 4.9%Integrated Merchandising Brampton ON 196,496 4.4%Converter Core Brampton ON 163,200 4.3%Renin Corp Brampton ON 148,832 4.2%Associated Brands Etobicoke ON 142,386 3.6%Faurecia Emissions Control Brampton ON 121,138 3.0

53、%Total 1,741,977 54.3%*Majority of GLA released to Mobilshred effective Jan 1,2014 and Lockheed Martin effective Jan 1,2015 Top-TenTenantsSUMMIT II REIT 2013 ANNUAL REPORT 9 3.68%3.69%3.68%3.68%3.71%3.68%BRITISH COLUMBIA(1%)6708,87A Avenue Fort Saint John 2006 Single 1 13,500 100.0%2500 Cranbrook St

54、reet Cranbrook 1970 Single 1 8,200 100.0%ALBERTA(3%)3703 98th Street Edmonton 1978 Single 1 45,752 100.0%5880 56th Ave Edmonton 1997/2004 Single 1 30,411 100.0%6882&6884,52nd Avenue Red Deer 1970 Single 1 8,000 100.0%ONTARIO(82%)501 Palladium Drive Ottawa 2007 Multi 2 258,371 100.0%134 Bethridge Roa

55、d Etobicoke 1965/2005 Single 1 142,386 100.0%710 Neal Drive Peterborough 1973/Ongoing Single 1 101,601 100.0%200 Iber Road Ottawa 2007 Multi 4 75,743 100.0%240 Laurier Boulevard Brockville 2005/2010 Single 1 68,093 100.0%155-161 Orenda Road(1)Brampton 1970/1996 Multi 3 319,077 100.0%8705 Torbram Roa

56、d(1)Brampton 1980/2003 Multi 3 295,957 100.0%6 Shaftsbury Lane Brampton 1975 Single 1 125,871 100.0%40 Summerlea Road Brampton 1987 Single 1 121,138 100.0%296-300 Walker Drive Brampton 1976 Multi 2 102,972 100.0%292-294 Walker Drive(1)Brampton 1987 Multi 6 74,583 100.0%165 Orenda Road Brampton 2003

57、Single 1 57,055 100.0%1075 Clark Boulevard Brampton 1974 Single 1 35,842 100.0%200 Vandorf Sideroad Aurora 1985 Single 1 322,187 100.0%125 Nashdene Road Scarborough 1992 Multi 2 163,402 100.0%40 Dynamic Drive Scarborough 1988 Multi 3 86,681 75.3%50 Dynamic Drive Scarborough 1986 Single 1 45,003 100.

58、0%110 Walker Drive Brampton 1981/1987 Single 1 148,832 100.0%500 Veterans Drive Barrie 2004 Single 1 216,460 100.0%ATLANTIC CANADA(5%)290 Frenette Moncton,NB 2012 Single 1 169,474 100.0%QUBEC(9%)175 Bellerose Boulevard W Laval 2007 Single 1 81,087 100.0%2580 Dollard Avenue Lasalle 1973 Multi 4 89,00

59、0 100.0%2695 Dollard Avenue Lasalle 1954/1980 Multi 1 62,279 75.5%300 Labrosse Avenue Pointe-Claire 1974 Single 1 55,333 100.0%7290 Frederick-Banting Street St.Laurent 2001 Single 1 20,859 100.0%Total Portfolio 50 3,345,149 98.9%(1)Expected occupancy over the course of the period with vendor leases

60、in place.CITYYEAR BUILT/RENOVATEDSINGLE VERSUSMULTI-TENANTNUMBER OF TENANTSGLA IN SQ.FEET%OCCUPANCYPROVINCE/ADDRESSSummit II REIT Portfolio by Property10 SUMMIT II REIT 2013 ANNUAL REPORT11British Columbia 1%Alberta 3%Ontario 82%Atlantic Canada 5%Quebec 9%Our near-term focus is to build on our subst

61、antial portfolio in the Greater Toronto Area where recent research indicated that it is experiencing the lowest availability and vacancy rate in the country at 4.6%and 2.6%,respectivelySummit IIs management team has the proven ability to build value for Unitholders over the long term.We have decades

62、 of industry experience,as well as relationships,to achieve our goals.We are also fully aligned with all REIT Unitholders through our substantial ownership interests.We continue to take the majority of our fees in units,or use these fees to purchase units in our equity offerings.We have also used ou

63、r own funds to buy units in our offerings,as well as on the market.Currently,we have a significant ownership interest in the REIT and will continue to maintain and grow this interest going forward.Proven,Experienced Management TeamLou MarounCHAIRMAN Sigma Asset Management Limited32yearsexperience in

64、 the commercial real estate industryPreviouslytheCEO of Summit REIT,the largest industrial pure-play REIT in Canada,and the Executive Chairman of ING Real Estate CanadaPaul Dykeman CHIEF EXECUTIVE OFFICER Sigma Asset Management Limited24yearsexperience in the commercial real estate industryPreviousl

65、ytheCFO of Summit REIT,the largest industrial pure-play REIT in Canada,and the CEO of ING Real Estate CanadaRoss Drake CHIEF FINANCIAL OFFICER Sigma Asset Management Limited22yearsexperience in the commercial real estate industryPreviouslythe Senior Vice President of Research&Analysis at ING Real Es

66、tate Canada,and is a Chartered AccountantKimberley G.Hill VICE PRESIDENT,ASSET MANAGEMENT Sigma Asset Management Limited23yearsexperience in the commercial real estate industryPreviouslythe Senior Vice President of Asset Management at ING Real Estate CanadaJon Robbins VICE PRESIDENT,INVESTMENTS Sigm

67、a Asset Management Limited23yearsexperience in the commercial real estate industryPreviouslytheVice President of Investments at Summit REIT12 SUMMIT II REIT 2013 ANNUAL REPORTCorporate Address 294 Walker Drive,Unit 1Brampton,Ontario L6T 4Z2Stock Exchange ListingTrust Units are traded on the Toronto

68、Stock Exchange under the symbol:SMU.UN Units Outstanding Dec 31:18,157,199Cash Distribution Info$0.0408 per month;declared in 2013$0.408(10 months);paid in 2013$0.3672(December paid in January 2014)Investor Relations ContactPaul Dykeman1801 Hollis Street,Suite 2020 Halifax,Nova Scotia B3J 3N4Auditor

69、 Deloitte LLPLegal CouncilMcCarthy Ttrault LLP Transfer AgentComputershare Trust Company of CanadaAnnual General Meeting Wednesday May 7,2014 at 10:00am McCarthy Ttrault LLPSuite 5300TD Bank Tower66 Wellington Street WestToronto,Ontario M5K 1E6Summit Industrial Income REIT Unitholder InformationWith

70、 strong industry fundamentals,best-in-class properties,and a proven management team with decades of experience,we are well-positioned to deliver increasing Unitholder valueCorporate Offices294 Walker Drive,Unit 1 Brampton,Ontario L6T 4Z2Investor Relations1801 Hollis Street,Suite 2020Halifax,Nova Scotia B3J 3N4Tel:905-791-1181e-mail: