Summit Industrial Income REIT (SMU) 2018年年度報告「TSX」.pdf

1、DELIVERING VALUETHROUGH FOCUSED GROWTH&SUSTAINABLE INCOME TO UNITHOLDERS2018 ANNUAL REPORTThe REIT is managed by Sigma Asset Management Limited,an experienced and proven team of real estate professionals responsible for a ten-year 20%compound annual return generated for investors with the former Sum

2、mit REIT.SUMMIT INDUSTRIAL INCOME REAL ESTATE INVESTMENT TRUST IS AN UNINCORPORATED OPEN-END TRUST FOCUSED ON GROWING AND MANAGING A PORTFOLIO OF LIGHT INDUSTRIAL PROPERTIES ACROSS CANADA.SUMMIT II REIT 2018 ANNUAL REPORT 1305 C.H.MEIER BOULEVARDSTRATFORD,ONTARIO TABLE OF CONTENTS2 2018 Highlights 3

3、 2018 Financial Highlights 4 Six Years of Growth and Performance 6 Message to Unitholders 10 At a Glance 12 Portfolio by Property 14 Portfolio Breakdown 15 2018 Acquisitions 16 Proven,Experienced Management Team 17 Track Record of Growth and PerformanceAcquired 24 properties totaling 4.8 MILLION SQ.

4、FT.for$578.3 million at overall cap rate of 5.4%,increasing portfolio size by 56.3%.Total NOI up59.8%on revenue increase,organic growth and strong operating performance.Completed all 2018 lease renewals with strong92.5%RETENTIONand 9.5%increase in rents(12.7%increase in GTA).Industrial occupancy str

5、ong at99.4%with average lease term of 6.2 years and contractual rent steps of 1.3%per year.FFO up61.7%on revenue growth,strong operating performance.Proactively completed 2019 renewals ONLY 2.3%OF TOTAL PORTFOLIOremains to be renewed in 2019.Same property NOI increased1.4%with Toronto and Montreal u

6、p 4.7%and 5.7%respectively.Fair value gain in the property portfolio of$143.8 MILLION or$1.85 per Unit.2019 renewals,early renewals and lease expansions generate11.9%INCREASE IN RENTS (16.1%increase in GTA).2018 HIGHLIGHTS2 DELIVERING VALUE2018 FINANCIAL HIGHLIGHTSYEAR ENDED DECEMBER 31,2018($,000 E

7、XCEPT PER UNIT AMOUNTS)2018 2017Revenue from income properties$92,150$58,573 NOI 64,840 40,577 FFO 43,591 26,960 FFO per Unit 0.560 0.564 FFO Payout Ratio 92.1%90.7%FFO including net realized gain payout ratio with DRIP benefi t 70.0%76.0%Weighted average Units outstanding(1)77,803 47,767 AS AT DECE

8、MBER 31,2018 Total assets$1,774,604$1,003,239 Weighted average eff ective mortgage interest rate 3.72%3.50%Weighted average mortgage term(years)4.80 3.97 Leverage ratio 47.0%51.3%Interest coverage(times)2.96 3.24 Debt service coverage(times)1.79 1.89 Debt-to-adjusted EBIDTA(times)13.24 13.89 SUMMIT

9、II REIT 2018 ANNUAL REPORT 3 2601 14TH AVENUEMARKHAM,ONTARIO 2018 2017Revenue from income properties$92,150$58,573 NOI 64,840 40,577 FFO 43,591 26,960 FFO per Unit 0.560 0.564 FFO Payout Ratio 92.1%90.7%FFO including net realized gain payout ratio with DRIP benefi t 70.0%76.0%77,803 47,767 Total ass

10、ets$1,774,604$1,003,239 Weighted average eff ective mortgage interest rate 3.72%3.50%Weighted average mortgage term(years)4.80 3.97 Leverage ratio 47.0%51.3%Interest coverage(times)2.96 3.24 Debt service coverage(times)1.79 1.89 Debt-to-adjusted EBIDTA(times)13.24 13.89 1)Includes REIT Units and Cla

11、ss B exchangeable UnitsNET OPERATING INCOME($,000)9,70712,44716,98019,63590626,96022,04744,9502,49758,57338,37728,74092,150020,00040,00060,00080,000100,000010,00020,00030,00040,00050,0000500,0001,000,0001,500,0002,000,000010,00020,00030,00040,00050,00060,00070,00080,000201820172016201520142013201220

12、18201720162015201420132012REVENUE FROM INCOME PROPERTIES($,000)NET OPERATING INCOME($,000)16,49221,2141,98026,51230,25340,57764,840010,00020,00030,00040,00050,00060,00070,00080,0006,4926,49212 126,526,52018201720162015201420132012As Summits growth accelerates,accretive acquisitions,combined with sol

13、id organic growth,continue to generate solid returns for UnitholdersThrough a series of accretive acquisitions,Summit has built a strong and diversifi ed property portfolio in well-located key target markets4 DELIVERING VALUESIX YEARS OF GROWTH AND PERFORMANCE9,70712,44716,98019,63590626,96043,5911,

14、774,604020,00040,00060,00080,000100,000010,00020,00030,00040,00050,0006,980126,96026,9600500,0001,000,0001,500,0002,000,000010,00020,00030,00040,00050,00060,00070,00080,0002018201720162015201420132012201820172016201520142013201220182017201620152014201320122018201720162015201420132012REVENUE FROM INC

15、OME PROPERTIES($,000)FUNDS FROM OPERATIONS($,000)1,774,6040500,0001,000,0001,500,0002,000,0002018201720162015201420132012TOTALASSETS($,000)500,807310,41381,571341,6461,003,239406,411Funds from Operations,our key performance metric,continues to increase as Summit leverages its proven asset and proper

16、ty management experienceThe signifi cant growth in Summits size and scale allows the REIT to participate in value-add development and re-development projects.SUMMIT II REIT 2018 ANNUAL REPORT 556 STEELCASE ROAD WESTMARKHAM,ONTARIO2018 WAS ANOTHER RECORD YEAR FOR SUMMIT AS WE CONTINUED TO MEET OUR GO

17、AL OF DELIVERING VALUE THROUGH FOCUSED,PROFITABLE GROWTH WHILE GENERATING STABLE AND SUSTAINABLE INCOME FOR OUR UNITHOLDERS.WE SIGNIFICANTLY EXPANDED THE SIZE AND SCALE OF OUR PROPERTY PORTFOLIO IN KEY TARGET MARKETS.WE CAPITALIZED ON THE PROVEN EXPERIENCE OF OUR PEOPLE TO PRODUCE STRONG GROWTH IN A

18、LL PERFORMANCE BENCHMARKS.AT THE SAME TIME,WE MAINTAINED A HIGHLY CONSERVATIVE BALANCE SHEET AND FINANCIAL POSITION.WE WILL CONTINUE TO BUILD ON OUR PREVIOUS SUCCESS FOR THE LONG-TERM BENEFIT OF OUR UNITHOLDERS.FOCUSED PROFITABLE GROWTH 2018 was another year of signifi cant and profi table growth fo

19、r Summit as we acquired 24 properties;totaling 4.8 million square feet for a total cost of approximately$578.3 million.To fund these purchases,we successfully raised$255.0 million in two accretive bought-deal equity off erings and$410.3 million in new and assumed mortgages,including$153.0 million in

20、 two bridge loans used to complete acquisitions in December,with a low weighted average rate of 4.02%.As a result,the acquisitions in 2018 generated a very strong going-in capitalization rate of approximately 5.4%.Our growth remains highly focused as we strengthened our presence in key target market

21、s of Greater Toronto and Montreal,by far Canadas most vibrant industrial markets.Both are experiencing historically low vacancy rates with demand and absorption signifi cantly outpacing new supply.With these strong fundamentals,increases in overall market rental rates are consistent across both regi

22、ons.Going forward,we will continue to profi tably expand our presence in these very strong markets.At year end approximately 76%of our total portfolio was in the GTA and Montreal.During 2018,we prudently expanded our presence in Alberta where we believe we can achieve strong returns.With low lease a

23、nd sale activity and reduced competition for assets,we are achieving high and very accretive capitalization rates with our acquisitions.In December 2017,we diversifi ed and strengthened our property portfolio through a joint venture relationship with Urbacon Limited to develop,own and operate high-y

24、ielding,state-of-the-art digital data centre properties.Urbacon is Canadas most experienced participant in this market with more than twenty-fi ve years of experience.In 2018 we fully leased our fi rst Toronto data centre resulting in a very accretive yield of over 10%.We also extended a new mezzani

25、ne loan to Urbacon to begin construction of a second data centre adjacent to the fi rst at the Toronto campus.MESSAGE TO UNITHOLDERS6 DELIVERING VALUE305 C.H.MEIER BOULEVARDSTRATFORD,ONTARIOAt year-end,we owned interests in 108 properties totaling approximately 13.4 million square feet with a book v

26、alue of approximately$1.8 billion.Our property portfolio is near fully occupied by solid,credit-worthy tenants,and our properties are well-located in strong urban markets near major rail,highway and airport transportation links.STABLE,SUSTAINABLE INCOMEA key objective at Summit is to ensure we deliv

27、er stable,sustainable,and growing monthly cash distributions to our Unitholders.With recent economic uncertainty and global equity market volatility,our ability to deliver income to investors on a consistent and regular basis forms one of our key objectives to build value.Our prudent,focused and pro

28、fi table approach to portfolio growth,our proactive and proven leasing strategies,and the strength of our fi nancial position all contribute to the stability and sustainability of cash fl ows.In the ten years of the fi rst Summit REIT,and since this REITs founding in 2012,we have consistently met ou

29、r goal of delivering cash distributions each and every month.In addition,we continue to evaluate every property in our portfolio and pursue ways to effi ciently re-cycle capital into more accretive growth opportunities to generate further value for the Unitholders.As an example,in early 2018 we sold

30、 a 75%interest in four non-core properties generating$46.4 million in net proceeds and a$7.2 million($0.10 per Unit)realized gain on the sale.Pursuant to our policy of issuing a portion of our realized gains to Unitholders,we announced a special cash distribution in May of$0.018 per Unit.SAUL SHULMA

31、NINDEPENDENT TRUSTEE&CHAIR OF GOVERNANCE COMMITTEE&MEMBER OF AUDIT COMMITTEELARRY MORASSUTTI CPA CAINDEPENDENT TRUSTEE&MEMBER OF AUDIT&GOVERNANCE COMMITTEEJAMES TADESONCFALEAD INDEPENDENT TRUSTEE&CHAIR OF AUDIT COMMITTEE&MEMBER OF GOVERNANCE COMMITTEEPAUL DYKEMANCPA CACHIEF EXECUTIVE OFFICER&TRUSTEE

32、LOU MAROUNCHAIRMAN&TRUSTEEWITH RECENT ECONOMIC UNCERTAINTY AND GLOBAL EQUITY MARKET VOLATILITY,OUR ABILITY TO DELIVER INCOME TO INVESTORS ON A CONSISTENT AND REGULAR BASIS FORMS ONE OF OUR KEY OBJECTIVES TO BUILD VALUE.SUMMIT II REIT 2018 ANNUAL REPORT 7MICHAEL CATFORDINDEPENDENT TRUSTEE&MEMBER OF A

33、UDIT&GOVERNANCE COMMITTEE335 CARLINGVIEW DRIVE ETOBICOKE,ONTARIOPROVEN LEASING PROGRAMS STRENGTHEN STABILITY OF CASH FLOWSOur proven and successful leasing activities also support our ability to generate strong and steady cash flows.We continue to maintain near-full occupancies,and our contractual a

34、nnual rent increases and 6.2-year average lease terms will generate solid and stable organic growth for future years.Our strong relationships with our tenants resulted in a remarkable 92.5%retention rate on lease renewals in 2018,reducing our exposure to vacancy.We continue to be highly proactive wi

35、th our lease renewals,and with the 2019 lease renewals completed in 2018,only 2.3%of our total portfolio is subject to renewal in 2019.We fully expect to retain most of these tenants as we have in the past.These strong fundamentals contribute to our objective to deliver stable and sustainable income

36、 to our Unitholders over the long term.Our proactive renewal initiatives are generating strong growth in rental income.For example,the 2018 renewals resulted in an overall 9.5%increase over the expiring rates,with a strong 12.7%increase in the GTA properties.For the 2019 renewals completed in 2018,r

37、ents were 11.9%higher with a 16.1%increase in the GTA.ANOTHER RECORD YEAROur focus on profitable growth has resulted in operating revenues rising 57.3%in 2018 to$92.2 million,driven by property acquisitions,near full occupancies,and strong organic growth.Net operating income rose 59.8%to$64.8 millio

38、n as we capitalized on the increase in the size and scale of our property portfolio.Same property NOI rose 1.4%for the year,driven by significant gains in our Greater Toronto and Montreal portfolios of 4.5%and 4.7%respectively,demonstrating the strength of these target markets.Funds from Operations(

39、FFO),our key operating benchmark,rose to$43.6 million,up 61.5%from 2017.Our per Unit amounts and payout ratios were impacted by the 62.9%increase in the weighted average number of Units outstanding for the year due to the two successful bought-deal equity offerings and the issuance of Class B Exchan

40、geable Units related to a 2018 acquisition.There were no Class B Exchangeable Units outstanding in 2017.Our balance sheet and liquidity position remained strong at year end with a conservative leverage ratio of 47.4%,an attractive weighted average effective interest rate on our mortgage portfolio of

41、 3.72%,and a weighted average term to maturity of 4.8 years.Subsequent to the year end we re-financed the two bridge loans with new ten-year mortgages,extending the average term to maturity to 5.9 years.A TRACK RECORD OF DELIVERING VALUEAt Summit,we have decades of proven experience in acquiring,own

42、ing,managing and developing light industrial properties.The original Summit REIT was established in 1996,and over the next ten years we grew the portfolio to more than 33 million square feet becoming Canadas largest industrial landlord.We put together a proven and experienced national operating plat

43、form which continues to generate high stable occupancies and strong tenant retention.8 DELIVERING VALUE AT SUMMIT,WE HAVE DECADES OF PROVEN EXPERIENCE IN ACQUIRING,OWNING,MANAGING AND DEVELOPING LIGHT INDUSTRIAL PROPERTIES.SUMMIT II REIT 2018 ANNUAL REPORT 9By leveraging this experience,the original

44、 Summit realized a total annualized return of approximately 20%for its Unitholders between 1996 and 2006.Looking ahead,we believe the opportunity for the new Summit is very positive.Learning from our decades of experience,we have signifi cantly increased the average tenant size in our current portfo

45、lio,rising from approximately 13,000 square feet in the original Summit to over 60,000 square feet today.We have increased the number of single tenant properties to 72%of the current portfolio compared to only 36%in the fi rst Summit.We are now focused on three target markets from seven in the fi rs

46、t Summit,driving more effi cient and eff ective property management.Average occupancies have ranged between 98%and 100%for the current portfolio since inception,a signifi cant improvement over the 90%to 95%range in the fi rst Summit.AN EXCITING FUTURELooking ahead,we will continue to execute the sam

47、e value-enhancing strategies that have been successful in the past.We will prudently and profi tably acquire high quality light industrial properties in our targeted Canadian urban markets,purchasing newer,well maintained assets that require little or no capital investment.Our acquisitions will be m

48、ade at below replacement cost with rents below market where we believe we can generate increased cash fl ows through our proven management programs.Our cash fl ows will grow organically as we capitalize on the continuing strong fundamentals in the light industrial property sector,build on contractua

49、l annual rent increases,and generate increasing operating synergies and reduced costs as we capitalize on the size and scale of our growing property portfolio.We will leverage our proven expertise to develop an estimated 300,000 square feet of GLA on land parcels owned by the REIT,all within the vib

50、rant GTA market.Once completed,these highly accretive properties will add over$30 million to our asset base.Most importantly,we will maintain our proven track record of delivering stable,sustainable and growing monthly cash distributions to our Unitholders over the long term.We recognize that in tod

51、ays uncertain economic times,our investors look to Summit to provide stable and predictable income we will maintain this focus in all we do.In summary,we are very pleased with our growth and performance and look for continued progress in the years ahead.With strong industry fundamentals,best-in-clas

52、s properties,and a proven management team with decades of experience,we are well-positioned to deliver stable,sustainable and increasing value to our Unitholders over the long term.Lou Maroun Paul Dykeman Chairman President&CEOMAINTAINING HIGH,STABLE,SUSTAINABLE OCCUPANCIES:STRONG TENANT RETENTION O

53、N LEASE RENEWALS:STRONG RENTAL RATE GROWTH ON RENEWALS:PROACTIVELY RENEWING LEASES:99.4%9.5%11.9%92.5%ONLY 2.3%AT DEC.31,2018INCREASE ON 2018 RENEWALS(UP 12.7%IN GTA)INCREASE ON 2019 RENEWALS(UP 16.1%IN GTA)IN 2018OF TOTAL LEASES MATURING IN 2019A WELL BALANCED MORTGAGE PORTFOLIO A WELL BALANCED LEA

54、SE PORTFOLIO PRINCIPALREPAYMENTS($MILLIONS)0$20$40$60$80$100$120$140$160$180THEREAFTER202420232022202120202019107.357.846.8113.092.030.5164.3LEASE ROLLOVER(SQUARE FEET)(,000)2.3%01,0002,0003,0004,0005,0006,0007,0008,000201910.9%20209.6%20218.6%202215.4%2023 THEREAFTER53.2%AT A GLANCEBUILDING VALUE T

55、HROUGH PROVEN LEASING PROGRAMS10 DELIVERING VALUESTRONG INDUSTRY FUNDAMENTALSThe Canadian light industrial real estate sector possesses strong fundamentals well-suited to generate stable,secure and growing cash fl ows:LOW RENT VOLATILITY LOW CAPITAL,MAINTENANCE,LEASEHOLD IMPROVEMENT AND TENANT INDUC

56、EMENT COSTSREDUCEDOPERATINGCOSTS GENERIC AND HIGHLY MARKETABLE SPACEA STRONG AND GROWING PORTFOLIO107 industrial properties1 data centre property13.4 million sq.ft.GLA 99.4%occupied SUMMIT II REIT 2018 ANNUAL REPORT 11QUEBEC27 Properties3.1 M sq.ft.ATLANTIC CANADA1 Property42,369 sq.ft.ONTARIO66 Pro

57、perties8.3 M sq.ft.ALBERTA12 Properties1.9 M sq.ft.BRITISH COLUMBIA2 Properties21,700 sq.ft.76%OF PORTFOLIO IN KEY TARGET MARKETS:53%in Greater Toronto Area23%in Greater Montreal Area YEAR BUILT/SINGLE VS.NO.OF ADDRESS CITY RENOVATED MULTI-TENANT TENANTS GLA(SF)OCCUPANCY(%)ONTARIO 61.5%200 Vandorf S

58、ideroad Aurora 1985 Single 1 322,187 100.0%500 Veterans Drive Barrie 2004 Single 1 216,460 100.0%155-161 Orenda Road Brampton 1970 Multi 5 319,077 100.0%8705 Torbram Road Brampton 1980/2003 Multi 4 296,203 100.0%6 Shaftsbury Lane Brampton 1975 Single 1 125,871 100.0%40 Summerlea Road Brampton 1987 S

59、ingle 1 121,138 100.0%292-294 Walker Drive Brampton 1987 Multi 7 74,583 100.0%296-300 Walker Drive Brampton 1976 Multi 2 102,972 100.0%165 Orenda Road Brampton 2003 Single 1 57,055 100.0%1075 Clark Boulevard Brampton 1974 Single 1 35,842 100.0%78 Walker Drive Brampton 1986/2000 Single 1 150,000 100.

60、0%110 Walker Drive Brampton 1981/1987 Single 1 148,832 100.0%1600 Clark Boulevard Brampton 1974 Single 1 79,300 100.0%240 Laurier Boulevard Brockville 2005/2010 Single 1 17,023 100.0%977 Century Drive Burlington 1980 Single 1 45,496 100.0%1111 Corporate Drive Burlington 1998 Single 1 151,410 100.0%4

61、455 North Service Road Burlington 1975 Single 1 250,000 100.0%30 Struck Court Cambridge 2006 Single 1 111,493 100.0%201 Shearson Crescent Cambridge 1989 Single 1 26,665 100.0%2000 Kipling Avenue Etobicoke 1960/2000 Single 1 195,302 100.0%13 Bethridge Road Etobicoke 1960 Single 1 102,318 100.0%134 Be

62、thridge Road Etobicoke 1965 Single 1 142,386 100.0%330 Humberline Drive Etobicoke 1973/2017 Multi 2 255,000 82.5%55 Carrier Drive Etobicoke 1976 Single 1 64,412 100.0%65 Carrier Drive Etobicoke 1983 Single 1 61,947 100.0%326 Humber College Blvd.Etobicoke 1973 Single 1 41,207 100.0%400 Bingemans Cent

63、re Drive Kitchener 2005 Single 1 119,060 100.0%15600 Robins Hill Road London 2009 Single 1 210,727 100.0%65 Riviera Drive Markham 1985 Single 1 46,360 100.0%56 Steelcase Road West Markham 2012 Single 1 88,574 100.0%2601 14th Avenue Markham 1997 Single 1 232,454 100.0%1 Rimini Mews Mississauga 1972 S

64、ingle 1 46,150 100.0%350 Hazelhurst Road Mississauga 1997 Single 1 55,000 100.0%5485 Tomken Road Mississauga 1982 Single 1 63,700 100.0%2333 North Sheridan Way Mississauga 1970/2014 Multi 4 183,989 100.0%335 Carlingview Drive Toronto 2007 Multi 2 54,942 100.0%345 Carlingview Drive Toronto 1987/2015

65、Single 1 50,360 100.0%355 Carlingview Drive Toronto 2007 Multi 2 113,178 100.0%1980 Matheson Blvd.Mississauga 2001 Multi 3 140,254 100.0%6900 Tranmere Drive Mississauga 1988 Single 1 41,566 100.0%2485 Surveyor Road Mississauga 1982 Single 1 207,196 100.0%2335 Speers Road Oakville 2006 Single 1 260,8

66、30 100.0%2616 Sheridan Garden Drive Oakville 2007 Single 1 116,818 100.0%501 Palladium Drive(1)Ottawa 2007 Multi 3 64,602 100.0%200 Iber Road(1)Ottawa 2007 Multi 4 18,936 100.0%5499 Canotek Road Ottawa 1985 Single 1 9,295 100.0%710 Neal Drive Peterborough 1973 Single 1 101,601 100.0%1800 Ironstone M

67、anor Pickering 1980 Multi 3 158,831 100.0%125 Nashdene Road Scarborough 1992 Multi 2 163,402 100.0%40 Dynamic Drive Scarborough 1988 Multi 4 86,681 100.0%50 Dynamic Drive Scarborough 1986 Single 1 45,003 100.0%21 Finchdene Square Scarborough 1981/1986 Single 1 170,100 100.0%1361 Huntingwood Drive Sc

68、arborough 1977 Multi 13 86,682 100.0%10 Commander Blvd.Scarborough 1976 Single 1 33,575 100.0%20 Commander Blvd.Scarborough 1976 Single 1 63,966 100.0%40 Commander Blvd.Scarborough 1976 Single 1 50,526 100.0%305 C.H.Meier Boulevard Stratford 2018 Single 1 141,034 100.0%1001 Thornton Road South Oshaw

69、a 2007 Single 1 369,935 100.0%5101 Orbitor Drive Mississauga 1988 Single 1 262,610 100.0%1601 Tricont Avenue Whitby 1975/2005 Multi 4 130,967 100.0%1635 Tricont Avenue Whitby 2001 Single 1 128,450 100.0%1050-1051 Baxter Road Ottawa 1977/1978 Multi 16 161,060 85.4%225 Pinebush Cambridge 1973/2011 Mul

70、ti 5 297,977 100.0%2620-2650 Lancaster Road Ottawa 1986 Multi 14 38,081 94.9%2615 Lancaster Road Ottawa 1987 Multi 21 84,354 93.8%PORTFOLIO BY PROPERTY12 DELIVERING VALUE YEAR BUILT/SINGLE VS.NO.OF ADDRESS CITY RENOVATED MULTI-TENANT TENANTS GLA(SF)OCCUPANCY(%)QUEBEC 23.5%20500 Clark-Graham(2)Baie D

71、Urfe 2000 Single 1 28,104 100.0%3655 Ave des Grandes Tourelles(2)Boisbriand 2011 Multi 4 22,024 100.0%3700 Ave des Grandes Tourelles(2)Boisbriand 2015 Single 1 29,561 100.0%3720 Ave des Grandes Tourelles(2)Boisbriand 2014 Single 1 154,166 100.0%1405 Rue Graham-Bell(2)Boucherville 2008 Multi 2 23,066

72、 71.8%1970 John-Yule(2)Chambly 2011 Single 1 12,872 100.0%1177-1185 55e Ave(2)Dorval 1990 Single 1 77,946 100.0%1600 50th Avenue Lachine 1968/1987 Single 1 244,990 100.0%4875 Fairway Street Lachine 1968 Single 1 95,530 100.0%2580 Ave Dollard LaSalle 1973 Multi 4 89,000 100.0%2695 Ave Dollard LaSalle

73、 1954/1980 Multi 2 62,279 100.0%175 Bellerose Boulevard Laval 2007 Single 1 20,272 100.0%5545 Ernest-Cormier(2)Laval 2012 Single 1 24,958 100.0%185 Bellerose Blvd(2)Laval 2009 Single 1 19,566 100.0%4150 Chomedey Highway(2)Laval 2003 Single 1 35,000 100.0%5500 Trans-Canada Highway Pointe-Claire 1958/

74、2006 Single 1 511,848 100.0%300 Labrosse Avenue Pointe-Claire 1974 Single 1 55,333 100.0%5685 Rue Cypihot(2)Saint-Laurent 1980/1997 Single 1 78,468 100.0%4870 Robert-Boyd Street Sherbrooke 2017 Single 1 138,308 100.0%7290 Rue Frederick Banting Saint-Laurent 2001 Single 1 20,859 100.0%5757 Thimens Bl

75、vd.(2)Saint-Laurent 1981 Single 1 37,747 100.0%22401 Chemin Dumberry Vaudreuil-Sur-Le-Lac 2002 Single 1 147,700 100.0%117 Hymus Blvd.Pointe-Claire 2004 Multi 3 211,346 100.0%2900 Avenue Andre Dorval 1975 Single 1 111,103 100.0%7350 Trans Canada Highway Saint-Laurent 1972 Single 1 115,000 100.0%7101

76、Notre-Dame Street East Montreal 1947 Multi 2 611,434 100.0%2520 Marie Curie Saint-Laurent 1990 Single 1 154,374 100.0%ALBERTA 14.2%3343-3501 54th Ave Calgary 1972 Single 1 141,628 100.0%303 58th Avenue SE Calgary 1971 Multi 2 120,690 100.0%7910 51st Street SE Calgary 1998 Single 1 51,492 100.0%3703

77、98th Street Edmonton 1978 Single 1 46,541 100.0%5880 56th Ave Edmonton 1997/2004 Single 1 30,411 100.0%14404 128 Ave Edmonton 1966/2016 Single 1 309,077 100.0%572 Aero Drive Calgary 2014 Multi 6 136,416 100.0%588 Aero Drive Calgary 2014 Multi 8 91,421 100.0%6060 90th Ave SE Calgary 2005 Single 1 356

78、,331 100.0%8801 60th Street SE Calgary 2007 Single 1 245,471 100.0%6075 86th Ave SE Calgary 2007 Multi 2 247,823 100.0%17304/17374 116th Ave NW Edmonton 2004 Multi 4 148,470 100.0%NEW BRUNSWICK 0.3%290 Frenette Avenue(1)Moncton 2012 Single 1 42,369 100.0%BRITISH COLUMBIA 0.1%2500 Cranbrook Street Cr

79、anbrook 1970 Single 1 8,200 100.0%6708,87A Avenue Fort St.John 2006 Single 1 13,500 100.0%DATA CENTRE PROPERTIES 0.4%ONTARIO 80 Via Renzo Drive(2)Richmond Hill 2017 Multi 1 59,068 100.0%TOTAL INDUSTRIAL PORTFOLIO AS AT DECEMBER 31,2018 235 13,335,699 99.4%TOTAL DATA CENTRE PORTFOLIO 1 59,068 100.0%T

80、OTAL PORTFOLIO AS AT DECEMBER 31,2018 236 13,394,767 99.4%SUMMIT II REIT 2018 ANNUAL REPORT 13(1)represents 25%of total GLA(2)represents 50%of total GLAWe continue to focus our eff orts on growing our Greater Toronto Area and Montreal portfolios,markets that present a compelling opportunity to creat

81、e value for our Unitholders.ONTARIO 61.9%*QUEBEC 23.5%ALBERTA 14.2%NEW BRUNSWICK 0.3%BRITISH COLUMBIA 0.1%*INCLUDING 80 VIA RENZO DRIVE PORTFOLIO BREAKDOWN14 DELIVERING VALUE2018 ACQUISITIONS24SUMMIT II REIT 2018 ANNUAL REPORT 15 4455 NORTH SERVICE ROADBURLINGTON,ONTARIO14151617181234567891011121319

82、202122234455 North Service Road Burlington,Ontario225 Pinebush Road Cambridge,Ontario56 Steelcase Road West Markham,Ontario2601 14th Avenue Markham,Ontario2485 Surveyor Road Mississauga,Ontario5101 Orbitor Drive Mississauga,Ontario1001 Thornton Road South Oshawa,Ontario2615 Lancaster Road Ottawa,Ont

83、ario2620-2650 Lancaster Road Ottawa,Ontario1050-1051 Baxter Road Ottawa,Ontario305 C.H.Meier Boulevard Stratford,Ontario1601 Tricont Avenue Whitby,Ontario1635 Tricont Avenue Whitby,Ontario2900 Andre Avenue Dorval,Quebec7101 Notre-Dame Street East Montreal,Quebec117 Hymus Boulevard Pointe-Claire,Queb

84、ec7350 Trans-Canada Highway Saint-Laurent,Quebec2520 Marie Curie Avenue Saint-Laurent,Quebec572 Aero Drive NE Calgary,Alberta588 Aero Drive NE Calgary,Alberta6060 90th Avenue SE Calgary,Alberta8801 60th Street SE Calgary,Alberta6075 86th Avenue SE Calgary,Alberta17304/17374 116th Avenue NW Edmonton,

85、Alberta123456789101112131415161718192021222324PROVEN,EXPERIENCEDMANAGEMENT TEAMSummit IIs management team has proven its ability to build value for Unitholders,and we have the decades of experience and the industry relationships to continue building value over the long term.Importantly,our team is f

86、ully aligned with all Unitholders through our 6.8%insiders ownership interest.We will maintain a signifi cant ownership interest going forward.LOU MAROUNChairmanSigma Asset Management Limited37 years experience in the commercial real estate industryPreviously the CEO of Summit REIT,the largest indus

87、trial pure-play REIT in Canada,and the Executive Chairman of ING Real Estate CanadaPAUL DYKEMANCPA CAChief Executive Offi cerSigma Asset Management Limited 29 years experience in the commercial real estate industryPreviously the CFO of Summit REIT,the largest industrial pure-play REIT in Canada,and

88、the CEO of ING Real Estate CanadaKIMBERLEY HILLVice President,Asset ManagementSigma Asset Management Limited28 years experience in the commercial real estate industryPreviously the Senior Vice President of Asset Management at ING Real Estate CanadaROSS DRAKECPA CAChief Financial Offi cerSigma Asset

89、Management Limited27 years experience in the commercial real estate industryPreviously the Senior Vice President of Research&Analysis at ING Real Estate CanadaJON ROBBINSVice President,InvestmentsSigma Asset Management Limited28 years experience in the commercial real estate industryPreviously the S

90、enior Vice President of Investments at Summit REIT16 DELIVERING VALUE2601 14TH AVENUEMARKHAM,ONTARIOYEAR ENDING DECEMBER 31,2018 2017 2016 2015 2014 2013 2012Number of Industrial Properties 107 83 52 45 34 30 10Square Feet of Gross Leasable Area(.000)$13,395$8,818$5,246$4,403$3,737$3,345$730Occupanc

91、y(%)99.4%98.4%98.9%98.1%100.0%98.9%97.0%Revenues($,000)$92,150$58,573$44,950$38,377$28,740$22,047$2,497 Net Operating Income($,000)$64,840$40,577$30,253$26,512$21,214$16,492$1,980 Funds from Operations($,000)$43,591$26,960$19,635$16,980$12,447$9,707$906 Funds from Operations Per Unit$0.056$0.564$0.6

92、10$0.593$0.588 0.593 0.395 FFO Payout Ratio(%)92.1%90.7%82.6%85.0%84.9%68.7%Weighted Average Number of Units Outstanding(,000)77,803 47,767 32,178 28,628 21,164 16,356 2,294 Total Assets($,000)$1,774,604$1,003,239$500,807$406,411$341,646$310,413$81,571 Debt to Gross Book Value(%)47.0%51.3%54.0%53.7%

93、55.2%60.9%47.0%Weighted Average Mortgage Interest Rate(%)3.72%3.50%3.43%3.52%3.68%3.68%3.89%Weighted Average Mortgage Term to Maturity 4.8 years 4.0 years 4.5 years 4.5 years 4.5 years 5.0 years 4.7 years Weighted Average Lease Term to Maturity 6.1 years 5.8 years 5.4 years 5.6 years 5.8 years 6.0 y

94、ears 6.4 yearsTRACK RECORD OF GROWTH AND PERFORMANCECORPORATE ADDRESS75 Summerlea Road,Unit BBrampton,Ontario L6T 4V2STOCK EXCHANGE LISTINGTrust units are traded on the Toronto Stock Exchange under the symbol:SMU.UNUNITS OUTSTANDINGDecember 31,2018:100,621,488(includes Class B Exchangeable Units)CAS

95、H DISTRIBUTION INFO$0.043 per unit monthly($0.516 annualized)INVESTOR RELATIONS CONTACTPaul Dykeman CPA CAChief Executive Offi cer&Trustee1801 Hollis Street,Suite 1120Halifax,Nova Scotia B3J 3N4902-405-AUDITORDeloitte LLPLEGAL COUNCILMcCarthy Ttrault LLPTRANSFER AGENTComputershare Trust Company Of C

96、anadaANNUAL GENERAL MEETINGWednesday,May 8,2019 at 10:30 a.m.McCarthy Ttrault LLPSuite 5300TD Bank Tower66 Wellington Street WestToronto,Ontario M5K 1E6FORWARD-LOOKING STATEMENTSThis report may contain forward-looking statements and forward-looking information within the meaning of applicable securi

97、ties laws.The use of any of the words“expect”,“anticipate”,“continue”,“estimate”,“objective”,“ongoing”,“may”,“will”,“project”,“should”,“believe”,“plans”,“intends”,“goal”and similar expressions are intended to identify forward-looking information or statements.More particularly and without limitation

98、,this report contains forward looking statements and information concerning the goal to build Summit IIs property portfolio.The forward-looking statements and information are based on certain key expectations and assumptions made by Summit II,including general economic conditions.Although Summit II

99、believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable,undue reliance should not be placed on the forward looking statements and information because Summit II can give no assurance that they will prove to be correct.By its nat

100、ure,such forward-looking information is subject to various risks and uncertainties,which could cause the actual results and expectations to diff er materially from the anticipated results or expectations expressed.These risks and uncertainties include,but are not limited to,tenant risks,current econ

101、omic environment,environmental matters,general insured and uninsured risks and Summit II being unable to obtain any required fi nancing and approvals.Readers are cautioned not to place undue reliance on this forward-looking information,which is given as of the date hereof,and to not use such forward looking information for anything other than its intended purpose.Summit II undertake no obligation to update publicly or revise any forward-looking information,whether as a result of new information,future events or otherwise,except as required by