Summit Industrial Income REIT (SMU) 2017年年度報告「TSX」.pdf

1、ACCELERATINGGROWTH2017 Annual ReportSUMMIT 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.The REIT is managed by Sigma Asset Management Limited,an experienced and proven team

2、of real estate professionals responsible for a ten-year 20%compound annual return generated for investors with the former Summit REIT.SUMMIT II REIT 2017 ANNUAL REPORT 1 TABLE OF CONTENTS 2 2017 Highlights 3 2017 Financial Highlights 4 5 Years of Growth and Performance 6 Message to Unitholders 10 At

3、 a Glance 12 Diversifying our Asset Base 14 Portfolio by Property 16 Proven,Experienced Management Team 17 Five Year Financial Performance/Acquired interests in 30 light industrial properties and one data centre totalling 3.6 million sq.ft.for acquisition costs of$409.5 million at an average cap rat

4、e of 6.2%./Acquisitions program highly successful,increasing portfolio size by 69.2%./Completed three successful bought-deal equity offerings for total gross proceeds of$218.5 million./Obtained$209.1 million in new debt financings at an average 3.35%fixed interest rate with five-year term to maturit

5、y./Strengthened and diversified portfolio with entry into high-yield data centre market through new joint venture partnership with Canadas most experienced developer,and manager of data centre properties./Revenues up 30.3%on acquisitions and solid organic growth,driving 37.3%increase in FFO./Industr

6、ial occupancy strong at 98.4%with a 5.8 year weighted average lease term and 1.5%annual contractual rent increases./Manager and Insider interests remain strongly aligned with Unitholders through 8.3%ownership of REIT Units outstanding.2017 HIGHLIGHTS4 ACCELERATING GROWTH3700 AVENUE DES GRANDES TOURE

7、LLESBOISBRIAND,QUEBEC2017 FINANCIAL HIGHLIGHTSYEAR ENDED DECEMBER 31,2017 ($,000 EXCEPT PER UNIT AMOUNTS)2017 2016Revenue 58,573 44,950Net Operating income 40,577 30,253FFO 26,960 19,635FFO per Unit$0.564$0.610FFO Payout Ratio 90.7%82.6%AS AT DECEMBER 31,2017 2017 2016Debt to Gross Book Value 51.3%5

8、4.0%Weighted Average Mortgage Interest Rate 3.50%3.43%Weighted Average Mortgage Term to Maturity 4.0 yrs 4.5 yrsWeighted Average Lease Term to Maturity 5.8 yrs 5.4 yrsWeighted Average Units Outstanding(basic)47,767 32,178SUMMIT II REIT 2017 ANNUAL REPORT 56 ACCELERATING GROWTH15600 ROBINS HILL ROAD

9、LONDON,ONTARIO5 YEARS OF GROWTH SUMMIT II REIT 2017 ANNUAL REPORT 7AND PERFORMANCEREVENUE FROM INCOME PROPERTIES($,000)020,00040,00020132012201420152016201720132012201420152016201720122016201760,00022,04744,9502,49758,57338,37728,740010,00020,00030,000020,00040,00060,000TOTAL ASSETS($,000)0100,00020

10、0,000300,000400,000500,000600,000700,000800,000900,0001,000,000201320142015201220162017500,807310,41381,571341,6461,003,239406,411FUNDS FROM OPERATIONS($,000)2013201220142015201620179,70712,44716,98019,63590626,960010,00020,00030,000NET OPERATING INCOME($,000)20132014201520122016201716,49221,2141,98

11、026,51230,25340,577020,00040,00060,000TOTAL ASSETS($,000)0100,000200,000300,000400,000500,000600,000700,000800,000900,0001,000,000201320142015201220162017500,807310,41381,571341,6461,003,239406,411As Summits growth accelerates,accretive acquisitions,combined with solid organic growth,continue to gen

12、erate solid returns for UnitholdersFunds from Operations,our key performance metric,continues to increase as Summit leverages its proven asset and property management experienceThrough a series of accretive acquisitions,Summit has built a strong and diversified property portfolio well-located in key

13、 target marketsThe significant growth in Summits size and scale allows the REIT to participate in value-add development and re-development projects.JAMES TADESON CFALead Independent Trustee&Chair of Audit Committee&Member of Governance CommitteeSAUL SHULMANIndependent Trustee&Chair of Governance Com

14、mittee&Member of Audit CommitteeLARRY MORASSUTTI CPA CAIndependent Trustee&Member of Audit&Governance CommitteeMICHAEL CATFORDIndependent Trustee&Member of Audit&Governance CommitteePAUL DYKEMAN CPA CAChief Executive Officer&TrusteeLOU MAROUNChairman&TrusteeDEAR UNITHOLDERS2017 was another year of r

15、ecord financial and operating performance as we significantly increased the size and scale of the property portfolio while leveraging the proven experience of the management team to generate solid organic growth.We further diversified our asset base by acquiring our first property in the high yield

16、digital data centre market.Looking ahead,we are confident we have the assets and team to capitalize on continuing strong market fundamentals to further accelerate growth for the long-term benefit of our Unitholders.8 ACCELERATING GROWTHACCELERATING OUR GROWTH 2017 was a year of significant growth fo

17、r Summit as we acquired 30 industrial properties plus one data centre,totaling 3.6 million square feet at a total cost of approximately$409.5 million.Our growth was funded by internally-generated cash and the efficient use of the Canadian debt and capital markets.We successfully completed three accr

18、etive bought-deal equity offerings,raising approximately$218.5 million,and further capitalized on the current low-interest rate environment to arrange a total of$209.1 million in new mortgages with a weighted average interest rate of a low 3.35%.As a result,our acquisitions in 2017 generated a very

19、strong going-in capitalization rate of approximately 6.2%.We further strengthened our presence in key target markets of the Greater Toronto Area and the Greater Montreal Region,Canadas two largest industrial markets.Both regions are experiencing low availability and vacancy rates,with absorption out

20、pacing the new supply of industrial properties.With these strong fundamentals,we continue to experience upward pressure on rental rates and stable,near-full occupancy.We will continue to aggressively expand our presence in both of these strong markets.During the year,we prudently expanded our presen

21、ce in the Alberta industrial property market.We believe the historically strong markets in Calgary and Edmonton are now recovering,and with low lease and sale activity,we are finding reduced competition for assets,resulting in capitalization rates that are generally higher than in other regions.Look

22、ing ahead,we will continue to evaluate additional growth opportunities in this market.In the fourth quarter,steps to further diversify and strengthen the asset base were taken with the establishment of a joint venture relationship with Urbacon to develop,own and operate high yielding,state-of-the-ar

23、t digital data centre properties across Canada.Urbacon is Canadas most experienced participant in this market with twenty-five years of proven experience in design-built data centre development and operations.Summit now has exclusive rights to participate in Urbacons Canadian data centre projects.In

24、 December,the first transaction with Urbacon was completed with the purchase of a 50%interest in a brand-new,purpose built 10MW data centre in the GTA,and a mezzanine loan to Urbacon related to a recently-completed data centre in downtown Montreal.There is the option to convert this loan into a 50%o

25、wnership once the property has stabilized.The REIT also extended a working capital loan to Urbacon to begin construction of additional data centres in the GTA.We are excited to enter this high yielding and fast growing asset class.Demand for data centres continues to grow,driven by the accelerated u

26、se of smart phones,digital entertainment and the migration of business and personal communications and systems to cloud-based internet networks.These new transactions are an example of how,with the significant increase in the size and scale of our asset base,we are able to do more highly accretive,v

27、alue-add investments for the benefit of our Unitholders.With the accelerated growth during the year,as at December 31,2017 we had interests in 83 industrial properties,totaling approximately 8.8 million square feet SUMMIT II REIT 2017 ANNUAL REPORT 94870 RUE ROBERT-BOYD SHERBROOKE,QUEBECof GLA.Our p

28、roperty portfolio is near fully occupied by solid,credit-worthy tenants and all properties are well-located in strong urban markets near major rail,highway and airport transportation links.The strong and accelerating presence in the GTA is another key feature of our growing portfolio.Importantly,bui

29、lt-in contractual rent increases of approximately 1.5%across the portfolio ensure incremental growth in cash flows over the longer term.CAPITALIZING ON OUR EXPERIENCEAt Summit,we have decades of proven experience in acquiring,managing and developing light industrial properties,and we look forward,co

30、nfident in our ability to build on this track record of success to generate superior long-term value for our Unitholders.The original Summit REIT was established in 1996 and over the ensuing ten years assembled more than 33 million square feet of industrial assets,including over four million square

31、feet in developed or re-developed properties,resulting in ownership interests in Canadas largest industrial property portfolio.We developed a proven and experienced national operating platform that generated stable occupancy and strong tenant retention.In addition,we developed enduring relationships

32、 with Canadas real estate,debt and capital markets that continued to benefit our Unitholders.By leveraging this experience,the original Summit realized a total annualized return of approximately 20%between 1996 and 2006.While the growth and performance of the original Summit was extraordinary,we bel

33、ieve the opportunity for the new Summit is even greater.We are capitalizing on our experience to do things better with the new Summit.For example,we have significantly increased the average tenant size in the current portfolio,from approximately 13,000 square feet in the original Summit to over 60,0

34、00 square feet.We have also increased the number of single tenant industrial properties to 72%of this current portfolio compared to 36%in the first Summit.We have reduced our main target geographic markets to three from seven.This enhanced focus on properties and markets,drives more efficient and ef

35、fective property management and reduces operating costs.Average occupancies have ranged between 98%and 100%for the current portfolio since inception,a significant improvement over the 90%to 95%range for the first Summit.GENERATING RECORD PERFORMANCEWith the accelerated growth and strong operating pe

36、rformance,the REIT generated record results in 2017.Operating revenues were$58.6 million,up 30%from 2016,resulting in a 34%increase in net operating income.Funds from Operations(FFO),our key operating benchmark,rose to$26.9 million compared to$19.6 million in 2016.Occupancies remained at nearly full

37、 levels throughout the year.FFO at$0.564 per Unit,was down marginally from the prior year due to the successful three bought-deal equity offerings completed in 2017 and the timing to fully invest the net proceeds of these offerings into income producing properties.Looking ahead,our accretive growth

38、will 10 ACCELERATING GROWTHORGANIC GROWTH/Capitalize on strong industry fundamentals/Industry-leading operating company/Increasing occupancies and average rents/Capture economies of scale as portfolio grows EXTERNAL GROWTH/Acquire high quality light industrial properties/Price below replacement cost

39、/Modern,well maintained,single or multi-tenant properties/Near term focus on strong and growing Greater Toronto Area and Montreal marketsA PROVEN3 PART GROWTH STRATEGY DEVELOPMENT PARTNERSHIPS/Establish partnerships with experienced property developers/Acquire and re-develop underperforming properti

40、es/Vend properties into REIT when stabilized/Prudent investments20500 CLARK-GRAHAM BAIE DURFE,QUEBEC resume as these new properties make a strong and continued contribution to cash flow.The balance sheet and liquidity position remained strong at year end with a conservative leverage ratio of 51.3%,a

41、n attractive weighted average effective interest rate on the mortgage portfolio of 3.50%and a weighted average term to maturity of 3.97 years.Debt service and interest coverage ratios were also solid at 1.89 times and 3.24 times,respectively.In May 2017,the REIT was pleased to implement a 2.4%increa

42、se in annualized cash distributions paid on a monthly basis to our Unitholders,the second increase since the REITs inception in 2012.In addition,for the second year cash distributions in 2017 were 100%tax deferred,generating further benefits to the Unitholders.AN EXCITING FUTURELooking ahead,we will

43、 continue to execute the same value-enhancing strategies that have been successful in the past.We will prudently acquire high quality light industrial properties in the targeted Canadian urban markets,purchasing newer,well maintained assets that require little or no capital investment.Our acquisitio

44、ns will be made at below replacement cost with rents below market,where we can generate increased cash flows through our proven management programs.All property acquisitions will be accretive and with current capitalization rates well in excess of todays low cost debt financing,we believe we will co

45、ntinue to lock in very accretive spreads on our property purchases.We believe cash flows will also grow organically as we capitalize on the continuing strong fundamentals in the light industrial property sector,build on contractual annual rent increases,and generate increasing operating synergies an

46、d reduced costs as we continue to expand the size and scale of our property portfolio.We will continue to capitalize on our proven expertise to enter into joint venture relationships to develop and re-develop light industrial and other real estate assets.In summary,we are very pleased with the growt

47、h and performance to date,and look for continued progress in the years ahead.With strong industry fundamentals,best-in-class properties and a proven management team,the REIT is well-positioned to deliver stable,sustainable and increasing value to our Unitholders over the long term.Lou Maroun Paul Dy

48、keman Chairman President&CEOWITH THE ACCELERATED GROWTH DURING THE YEAR,AS AT DECEMBER 31,2017 WE HAD INTERESTS IN 83 INDUSTRIAL PROPERTIES,TOTALING APPROXIMATELY 8.8 MILLION SQUARE FEET OF GLA.OUR PROPERTY PORTFOLIO IS NEAR FULLY OCCUPIED BY SOLID,CREDIT-WORTHY TENANTS AND ALL PROPERTIES ARE WELL-L

49、OCATED IN STRONG URBAN MARKETS NEAR MAJOR RAIL,HIGHWAY AND AIRPORT TRANSPORTATION LINKS.THE STRONG AND ACCELERATING PRESENCE IN THE GTA IS ANOTHER KEY FEATURE OF OUR GROWING PORTFOLIO.SUMMIT II REIT 2017 ANNUAL REPORT 11GLANCEAT AA STRONG AND GROWING PORTFOLIO/83 industrial properties/1 data centre

50、property/8,876,763 square feet GLA/98.1%occupied BRITISH COLUMBIA 2 Properties 21,700 sq.ft.ATLANTIC CANADA 1 Property 42,369 sq.ft.ALBERTA 6 Properties 699,050 sq.ft.ONTARIO 53 Properties 6.1 M sq.ft.60%in GTA QUEBEC 22 Properties 2.0 M sq.ft.22%in GMA12 ACCELERATING GROWTH2335 SPEERS ROADOAKVILLE,

51、ONTARIOTOP-TEN INDUSTRIAL TENANTSAS AT DECEMBER 31,2017 PERCENTAGE OFRANK TENANT LOCATION GLA TOTAL BASE RENT1 Avon Canada Inc.Pointe-Claire,QC 511,848 5.2%2 Van-Rob Inc.Aurora,ON 322,187 4.2%3 National Tire Distributors Edmonton,AB 309,077 4.1%4 Canada Border Services Agency Mississauga,ON 77,804 3

52、.4%5 Monarch Plastics Oakville,ON 260,830 2.9%6 KIK Custom Products Inc.Etobicoke,ON 297,620 2.7%7 Bellwyck Packaging Inc.Multiple GTA,ON 261,746 2.6%8 Ford Motor Company of Canada,Limited Mississauga,ON 220,000 2.4%9 Canplas Industries Ltd.Barrie,ON 216,460 2.4%10 Elopak Canada Inc.Boisbriand,QC 15

53、4,166 2.3%Total Top-10 Tenants 2,631,738 32.2%Remaining Portfolio 120 Tenants 6,042,471 67.8%Total Industrial Portfolio Occupied 8,674,209 100%STRONG INDUSTRY FUNDAMENTALSThe Canadian light industrial real estate sector possesses strong fundamentals well-suited to generate stable,secure and growing

54、cash flows:/low rent volatility/reduced operating costs/generic and highly marketable space/low capital,maintenance,leasehold improvement and tenant inducement costsA WELL BALANCED MORTGAGE PORTFOLIO A WELL BALANCED LEASE PORTFOLIO 01009080706050403020102018201920202021PRINCIPAL REPAYMENTS($,000)Wei

55、ghted Average Effective Interest Rate3.42%3.50%3.45%3.35%3.34%THEREAFTER$63,707$40,978$51,400$36,9982022$89,878$95,6993.45%05001,0001,5002,0002,5003,0003,5002018201920202021THEREAFTERLEASE ROLLOVER(SQUARE FEET)(,000)4.8%7.2%202211.1%54.0%13.1%9.8%SUMMIT II REIT 2017 ANNUAL REPORT 1314 ACCELERATING G

56、ROWTHIn December 2017,Summit further strengthened and diversified its asset base through a joint venture with Urbacon to develop,own and operate high-yielding,state-of-the art digital data centres.Urbacon is Canadas most experienced participant in this market with more than twenty-five years of prov

57、en experience in design-built data centre development and operations.Demand for data centres continues to grow,driven by the accelerated use of smart phones,digital entertainment and the migration of business and personal communication systems to cloud-based internet networks.The relationship with U

58、rbacon is another example of how,with the increase in Summits size and scale of its asset base,it is able to do accretive value-add investing for the benefit of its Unitholders.DIVERSIFYING OUR ASSET BASESUMMIT II REIT 2017 ANNUAL REPORT 15900,000LOGINS3.5 MILLIONSEARCHQUERIES70,017 HOURS WATCHED$75

59、1,522SPENT ONLINE1.8 MILLIONSNAPS CREATEDGIFs SENT VIA MESSENGER120 NEW ACCOUNTSCREATED50 VOICE-FIRSTDEVICES SHIPPED40,000HOURS LISTENED156 MILLIONEMAILS SENT452,000TWEETS SENT990,000SWIPES46,200POSTS UPLOADED342,000 APPS DOWNLOADED4.1 MILLIONVIDEOS VIEWED16 MILLIONTEXTMESSAGESWHAT HAPPENS IN AN INT

60、ERNET MINUTE?80 VIA RENZO DRIVERICHMOND HILL,ONTARIO16 ACCELERATING GROWTH YEAR BUILT/SINGLE VS.NO.OF ADDRESS CITY RENOVATED MULTI-TENANT TENANTS GLA(SF)OCCUPANCY(%)ONTARIO 68.3%200 Vandorf Sideroad Aurora 1985 Single 1 322,187 100.0%500 Veterans Drive Barrie 2004 Single 1 216,460 100.0%155-161 Oren

61、da 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 Single 1 121,138 100.0%292-294 Walker Drive Brampton 1987 Multi 8 74,583 100.0%296-300 Walker Drive Brampton 1

62、976 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 1 150,000 100.0%110 Walker Drive Brampton 1981/1987 Single 1 148,832 100.0%1600 Clark Boulevard Brampton 1974 Single 1 79,3

63、00 100.0%240 Laurier Boulevard Brockville 2005/2010 Single 1 68,093 100.0%977 Century Drive Burlington 1980 Single 1 45,496 100.0%1111 Corporate Drive Burlington 1998 Single 1 151,410 100.0%30 Struck Court Cambridge 2006 Single 1 111,493 100.0%201 Shearson Crescent Cambridge 1989 Single 1 26,665 100

64、.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 Bethridge 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 Ca

65、rrier Drive Etobicoke 1983 Single 1 61,947 100.0%326 Humber College Boulevard Etobicoke 1973 Single 1 41,207 100.0%400 Bingemans Centre Drive Kitchener 2005 Single 1 119,060 100.0%15600 Robins Hill Road London 2009 Single 1 210,727 100.0%65 Riveria Drive Markham 1985 Single 1 46,360 100.0%1 Rimini M

66、ews Mississauga 1972 Single 1 46,150 100.0%350 Hazelhurst Road Mississauga 1997 Single 1 220,000 100.0%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 Mississauga 2007 Multi 2 54,942 100.0%345 Carlingvi

67、ew Drive Mississauga 1987/2015 Single 1 50,360 100.0%355 Carlingview Drive Mississauga 2007 Multi 2 113,178 100.0%1980 Matheson Boulevard Mississauga 2001 Multi 3 140,254 80.1%6900 Tranmere Drive Mississauga 1988 Single 1 41,566 100.0%2335 Speers Road Oakville 2006 Single 1 260,830 100.0%2616 Sherid

68、an 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 37,180 100.0%710 Neal Drive Peterborough 1973 Single 1 101,601 100.0%1800 Ironstone Manor Pickering 1980

69、 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 Scarborough 1977 Mult

70、i 12 86,586 100.0%10 Commander Boulevard Scarborough 1976 Single 1 33,575 100.0%20 Commander Boulevard Scarborough 1976 Single 1 63,966 100.0%40 Commander Boulevard Scarborough 1976 Single 1 50,526 100.0%SUMMIT II REIT PORTFOLIO BY PROPERTYSUMMIT II REIT 2017 ANNUAL REPORT 17 YEAR BUILT/SINGLE VS.NO

71、.OF ADDRESS CITY RENOVATED MULTI-TENANT TENANTS GLA(SF)OCCUPANCY(%)QUEBEC 22.4%20500 Rue Clark-Graham(2)Baie DUrfe 2000 Single 1 28,104 100.0%3655 Avenue des Grandes Tourelles(2)Boisbriand 2011 Multi 4 22,024 100.0%3700 Avenue des Grandes Tourelles(2)Boisbriand 2015 Single 1 29,561 100.0%3720 Avenue

72、 des Grandes Tourelles(2)Boisbriand 2014 Single 1 154,166 100.0%1405 Rue Graham-Bell(2)Boucherville 2008 Multi 1 23,066 26.7%1970 John-Yule Street(2)Chambly 2011 Single 1 12,872 100.0%1177-1185 55e Avenue(2)Dorval 1990 Single 1 77,946 100.0%1600 50th Avenue Lachine 1968/1987 Single 1 244,990 100.0%4

73、875 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 1954/1980 Multi 2 62,279 100.0%175 Bellerose Boulevard Laval 2007 Single 1 81,087 100.0%5545 Ernest-Cormier Street(2)Laval 2012 Single 1 24,956 100.0%185 Bellerose Boulev

74、ard(2)Laval 2009 Single 1 19,566 100.0%4150 Highway 13(2)Laval 2003 Single 1 35,000 100.0%5500 Trans-Canada Highway Pointe Claire 1958/2006 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 78,462 100.0%4870 Robert

75、-Boyd Street Sherbrooke 2017 Single 1 138,308 100.0%7290 Rue Frederick Banting St.Laurent 2001 Single 1 20,859 100.0%5757 Thimens Boulevard(2)St.Laurent 1981 Single 1 37,747 100.0%22401 Chemin Dumberry Vaudreuil-Sur-Le-Lac 2002 Single 1 147,700 100.0%ALBERTA 7.9%3343-3501 54th Avenue SE Calgary 1972

76、 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 98th Street Edmonton 1978 Single 45,752 0.0%5880 56th Avenue Edmonton 1997/2004 Single 1 30,411 100.0%14404 128 Avenue Edmonton 1966/2016 Single 1 309,077 100.0%N

77、EW BRUNSWICK 0.5%290 Frenette Avenue(1)Moncton 2012 Single 1 42,369 100.0%BRITISH COLUMBIA 0.2%2500 Cranbrook Street Cranbrook 1970 Single 8,200 0.0%6708,87A Avenue Fort St.John 2006 Single 1 13,500 100.0%DATA CENTRE PROPERTIES 0.7%ONTARIO 80 Via Renzo Drive(2)Richmond Hill 2017 Multi 1 59,068 50.0%

78、TOTAL INDUSTRIAL PORTFOLIO AS AT DECEMBER 31,2017 134 8,817,695 98.4%TOTAL DATA CENTRE PORTFOLIO 1 59,068 50.0%TOTAL PORTFOLIO 135 8,867,763 98.1%(1)REPRESENTS 25%OF TOTAL GLA.(2)REPRESENTS 50%OF TOTAL GLA.We continue to focus our efforts on growing our Greater Toronto Area and Montreal portfolios,m

79、arkets that present a compelling opportunity to create value for our Unitholders.ONTARIO 69.0%*QUEBEC 22.4%ALBERTA 7.9%NEW BRUNSWICK 0.5%BRITISH COLUMBIA 0.2%*INCLUDING 80 VIA RENZO DRIVE 2017 ACQUISITIONS303 58th Avenue SE 2335 Speers Road KIK Portfolio Lachine Portfolio 4870 Robert Boyd Street 550

80、0 Trans Canada Highway 330 Humberline Drive 1800 Ironstone Manor 4150 Highway 13 GPM Portfolio Morguard Portfolio Investors Group2616 Sheridan Garden Drive 80 Via Renzo Drive 1417725288363994101051111146121314121318 ACCELERATING GROWTHPROVEN,EXPERIENCED MANAGEMENT TEAMSummit IIs management team has

81、the proven ability to build value for Unitholders over the long term.We have decades of industry experience,as well as relationships,to achieve our goals.We are fully aligned with all REIT Unitholders through insiders substantial 8.3%ownership interest,and we will continue to maintain and grow this

82、interest going forward.Lou MarounChairman Sigma Asset Management Limited36 years experience in the commercial real estate industryPreviously the CEO of Summit REIT,the largest industrial pure-play REIT in Canada,and the Executive Chairman of ING Real Estate CanadaPaul Dykeman CPA CAChief Executive O

83、fficer Sigma Asset Management Limited 28 years experience in the commercial real estate industryPreviously the CFO of Summit REIT,the largest industrial pure-play REIT in Canada,and the CEO of ING Real Estate CanadaKimberley HillVice President,Asset Management Sigma Asset Management Limited27 years

84、experience in the commercial real estate industryPreviously the Senior Vice President of Asset Management at ING Real Estate CanadaRoss Drake CPA CAChief Financial Officer Sigma Asset Management Limited26 years experience in the commercial real estate industryPreviously the Senior Vice President of

85、Research&Analysis at ING Real Estate CanadaJon RobbinsVice President,Investments Sigma Asset Management Limited27 years experience in the commercial real estate industryPreviously the Senior Vice President of Investments at Summit REITYear ending December 31,2012 2013 2014 2015 2016 2017Number of In

86、dustrial Properties 10 30 34 45 52 83Square Feet of Gross Leasable Area(,000)730 3,345 3,737 4,403 5,246 8,818Occupancy(%)97.0%98.9%100.0%98.1%98.9%98.4%Revenues($,000)$2,497$22,047$28,740$38,377$44,950$58,573Net Operating Income($,000)$1,980$16,492$21,214$26,512$30,253$40,577Funds from Operations($

87、,000)$906$9,707$12,447$16,980$19,635$26,960Funds from Operations Per Unit 0.395 0.593 0.588 0.593 0.610 0.564FFO Payout Ratio(%)68.7%84.9%85.0%82.6%90.7%Weighted Average Number of Units Outstanding(,000)2,294 16,356 21,164 28,628 32,178 47,767 Total Assets($,000)$81,571$310,413$341,646$406,411$500,8

88、07$1,003,239Debt to Gross Book Value(%)47.0%60.9%55.2%53.7%54.0%51.3%Weighted Average Mortgage Interest Rate(%)3.89%3.68%3.68%3.52%3.43%3.50%Weighted Average Mortgage Term to Maturity 4.7 years 5.0 years 4.5 years 4.5 years 4.5 years 4.0 yearsWeighted Average Lease Term to Maturity 6.4 years 6.0 yea

89、rs 5.8 years 5.6 years 5.4 years 5.8 yearsFIVE YEAR FINANCIAL PERFORMANCE5303 58TH AVENUE SE CALGARY,ALBERTASUMMIT II REIT 2017 ANNUAL REPORT 17Corporate Address 294 Walker Drive,Unit 1 Brampton,Ontario L6T 4Z2Stock Exchange Listing Trust units are traded on the Toronto Stock Exchange under the symb

90、ol:SMU.UNUnits Outstanding Dec 31,2017:67,083,774Cash Distribution Info$0.043 per unit monthly ($0.516 annualized)Investor Relations Contact Paul Dykeman 1801 Hollis Street,Suite 1120 Halifax,Nova Scotia B3J 3N4902-405-8813 Auditor Deloitte LLPLegal Council McCarthy Ttrault LLPTransfer Agent Compute

91、rshare Trust Company Of CanadaAnnual General Meeting Wednesday May 9,2018 at 10:30 a.m.McCarthy Ttrault LLP Suite 5300 TD Bank Tower 66 Wellington Street West Toronto,Ontario M5K 1EFORWARD-LOOKING STATEMENTSThis report may contain forward-looking statements and forward-looking information within the

92、 meaning of applicable securities 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 partic

93、ularly and without limitation,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 c

94、onditions.Although Summit II 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 p

95、rove to be correct.By its nature,such forward-looking information is subject to various risks and uncertainties,which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed.These risks and uncertainties include,but are not limited

96、to,tenant risks,current economic environment,environmental matters,general insured and uninsured risks and Summit II being unable to obtain any required financing 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 law.