British Columbia Pension Forum May 24, 2007

Transcription

1 British Columbia Pension Forum 2007 May 24, 2007

2 Shareholder Objectives Economic Long term rate of return comparable to blue chip investments Preferred tax exempt real estate development & investment vehicle for Canadian Pension Plans Preservation of capital is key Focus on cash flow and long term capital appreciation Social Quality built housing both for rent and for-sale Socially targeted initiatives Employment Union jobs in the construction industry Saddleback Hills, Kamloops 2

3 Business Plan Highlights Goal to double portfolio value to $1.2 billion + Diversified by product type and location Prefer new development where feasible Acquisition on carefully considered investment parameters Expand existing assured rental housing alliance with OMERS and Sun Life from $300M to $900M Expand seniors living community development 6 communities by 2010 Targeted condominium developments 3

4 Accomplishments To Date $30 million in dividends over last 5 years In excess of $1.5 billion in completed developments Constructed over 7,300 rental & condominium homes Income producing real estate exceeds 5.2 million square feet 14.8 million person-hours of employment Over $64.3 million in health & welfare and pension benefits Circa, Collingwood Village, Vancouver 4

5 Dividends Policy: Historically set at 30% of Net Income Last 5 years: ($000 s) Total Company ,049 3,134 5,150 6,410 12,327 5

6 $ Thousands Net Operating Income 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, Forecast Current Actual 6

7 $ Thousands Revenue Real Estate Sales Rental Other 7

8 $ Thousands Shareholders Equity 500, , , , , , , , , , Note: Forecasts and actuals does not reflect any appreciation in the value of assets 8

9 $ Thousands Assets 1,200,000 1,000, , , , , , , ,148 1,000, , , Note: Forecasts and actuals does not reflect any appreciation in the value of assets 9

10 Debt To Equity IPP Development Total

11 Share Values Appraisal Method $1.43 $1.51 $1.69 $2.17 Discounted Cashflow Method $1.91 $2.14 $2.44 $

12 Returns Increase in Share Value 1 year 3 year 5 year Appraisal Method 29.8% 16.2% 12.3% Discounted Cash-flow Method 9.6% 12.5% 16.8% Note: net of all management expenses 12

13 Completed Developments $200 million Toronto Jazz Victoria Astoria Victoria Belvedere Kamloops Saddleback Hills Phase I & II: Vancouver Urba Vancouver Circa 13

14 Industrial, Commercial & Retail Current Status: Portfolio 3,525,000 sq ft Balance By Type - Office & Retail - Industrial - Hotel 1,483,000 sq ft 1,897,000 sq ft 145,000 sq ft 42% 54% 4% 14

15 Balance By Location BY VALUE BY AREA ON 11% AB 4% ON 15% AB 10% BC 85% BC 75% 15

16 Income Producing Portfolio Leasing Status Residential Rental 99% Office/Retail 98% Industrial 100% 201 County Court, Brampton 16

17 Income Producing Residential Portfolio Residential Rental 2,345 suites Seniors Living 183 suites Future: Rental Seniors 300 suites over 500 suites Top: Serrano, Village Gate West, Etobicoke Bottom: The O Keefe, Vancouver 17

18 Current Income Producing Portfolio Activity Ontario Jazz in final leasing phase Village Gate West Serrano under construction & commenced leasing Seniors under construction Alberta Edmonton & Calgary acquisitions Village Gate West Phase II, Etobicoke 18

19 Future Income Producing Portfolio Activity Ontario OMERS / Sun Life alliance expansion Adidas expansion Brantford site British Columbia Harbourside, North Vancouver 3 buildings Heather & Ash Street 20+ acres of waterfront in south Vancouver Seniors at UBC Potential Acquisitions Continue to actively seek properties in a competitive market Heather & Ash Street, Vancouver 19

20 Market Outlook Rental Well located, transit-oriented, condo quality rental projects continue to out perform the market, as evidenced by Prelude & Jazz. Anticipate strong demand for future rental - Echo boomers, increasing job creation and inmigration, etc. Limited supply of new rentals. Aging existing rental stock. 20

21 Current Condominium Developments British Columbia Vancouver Tapestry Patina & YMCA Victoria Chelsea Chelsea, Victoria Richmond Emporio Patina & YMCA, Vancouver 21

22 Future Condominium Developments Top: 365 Waterfront, Victoria British Columbia Victoria Waterfront Kelowna beach front property Ontario Toronto Five Corners Huntington Bayview Street Village Gate West Phase III Alberta Edmonton - Jasper Avenue Bottom: Five Corners, Toronto 22

23 Alberta Focus on the Future Focus on commercial income producing properties Acquisition & Development Currently have 7 properties Upcoming developments: High-end residential tower, Edmonton 152,000 square foot distribution facility, Edmonton Other projects planned in Calgary & Edmonton 4510 & th Avenue SE, Edmonton 23

24 Construction Market Overview Prevailing Factors: High volume of residential construction Shortage of skilled trades persons Competition for limited trade contractors Aging labour force coupled with few newcomers Current Conditions: Rising materials and labour costs Reduced productivities but increased supervision Construction schedules impacted Outlook : Increased volume of residential, commercial & infrastructure projects Continued shortages of skilled labour Greater competition for available trade contractors Continued escalation of construction costs and timelines 24

25 Addressing Skills Shortage Established a number of initiatives with BCIT In 10 years in excess of $863,800 contributed to BCIT programs through Concert initiatives Endowment Fund exceeds $425,000 Industry Partner Fund exceeds $392,661 25

26 Other Employment & Training Initiatives BladeRunners Partnership Program 1 st construction company to embrace program TradeWorks Training Society Supply our new home owner kits Victoria Youth Employment Program 26

27 Community Builder - Accomplishments Founded on principle of building high-quality affordable rental & for-sale homes Over 7,300 homes in 18 years 2,500 rental apartments Over $1.5 billion development projects completed or underway Income-producing real estate exceeds 5.2 million square feet Concert plays a key role as community builder 27

28 Economic Performance Share value increased by 16.8% annually over the last five years Five consecutive years of record net income Assets likely to exceed $1 billion by the end of

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30 Thank you 30