Recent Transactions Beltline Concrete Portfolio Size: 118 suites Cap: 5.2 % $/Suite: $214,000 Private to REIT Size: 112 units Cap: 5% $/Suite: $175,000 Private to Private Size: 263 units Cap: +/- 5% $/Suite: $180,000 Private to REIT Cedar Ridge Apartments 1446 Falconridge Drive NE 1
Inventory Inventory Inventory % of Vacancy Year (Traditional) (Condos) Total Total Rate 2004 42,335 4.3% 2005 41,416 1.6% 2006 40,333 4,704 10% 45,037 0.5% 2007 38,150 6,447 14% 44,597 1.5% 2008 36,858 5,939 14% 42,797 2.1% 2009 36,174 9,425 21% 45,599 5.3% 2010 35,512 11,168 24% 46,680 3.7% 2011 34,814 11,106 24% 45,920 1.9% 2012 34,212 14,313 29% 48,525 1.3% * SOURCE: CMHC 2
Paying the Rent from an article By Todd Hirsch at ATB Financial, April 4, 3
Calgary New Rental Apartment Construction Loca%on # Units Beltline 178 Beltline 150 Beltline 150 Beltline 150 Beltline 175 Downtown 340 Crescent Heights 120 Inner City Total 1263 4
Altus Group Limited Matthew Boukall Director, Research, Valuation & Advisory, Residential Advisory Services Consumer preference for new quality product Modern quality rentals are asking 25-50% higher rental rates than older rental stock Product Obsolescence Suite layouts, building infrastructure, supply location Demand Drivers in the Downtown and Suburbs Downtown employment growth and lifestyle driving downtown demand Population growth, housing affordability, and suburban employment growth driving suburban demand 5
Altus Group Limited Matthew Boukall Director, Research, Valuation & Advisory, Residential Advisory Services Calgary is underserved from a rental perspective Calgary has the lowest purpose built rental supply in the country on a per capita basis Condominium rental supply can t provide a stable supply of rental housing Decreasing housing affordability may create more demand for rental housing 6
GWL Realty Advisors Inc. Jeff Hyde Vice President, Development GWL Realty Advisors (GWLRA) is a real estate investment advisor providing asset management, property management, development, leasing and specialized real estate services to pension funds and institutional clients Incorporated in 1993, the company has grown to become the second largest investment advisor in Canada with total assets under management exceeding $15.5 billion CAD in 294 properties across Canada, including 16,600 multiresidential units On behalf of its pension fund clients, GWLRA has successfully developed over 60 projects, ranging in size from 26,000 square feet to over one million square feet, with a total value exceeding $3.5 billion GWLRA currently has over a dozen projects under construction across Canada with a value in excess of $1.2 billion 7
CAPREIT Mark Kenney Chief Operating Officer Primary focus on residential rental sector Interests in 39,242 residential suites and sites - 35,372 apartment and townhouse suites - 18 manufactured home communities comprising 3,870 land lease sites Listed on Toronto Stock Exchange (symbol CAR.UN) - Approx. 103.0 million Trust Units issued & outstanding - TSX/S&P REIT Indices Market capitalization approx. $2.3 billion 8
Bentall Kennedy (Canada) LP Toby Wu Vice President, Investment Management One of North America s largest real estate advisory firms Comprehensive services platform including Portfolio Management, Asset Management, Development, Leasing, Property Management Over 145 MM sq.ft. of office, industrial, retail, hospitality and multifamily; Over 30 Billion CAD under management Over 10,000 units of multifamily under management and 5,000 units of development pipeline across North America 9
Panel Discussion Where do you see the Canadian multi-residential market today? 10
Panel Discussion What about the Calgary multi-residential market? 11
Panel Discussion With so few opportunities in Canada, where else are you buying/ looking? 12
Investment Highlights Acquiring 338 modern furnished rental suites in 4 modern properties - Well located in central Dublin, Ireland - 93% occupancy - Built 2006-2008 for owner occupied 42.7 million purchase price - Below replacement & original sale price - Financed by new Euro credit line at approximately 3.45% Hedging Euro denominated cash flows Leveraging our proven property management expertise - CAPREIT team on the ground 1 13
Significant Growth Opportunity Dublin demand for rental accommodation exceeds supply - Significant shortage of quality rental properties - Supply in Dublin market less than half required to meet one month s demand Fewer rental properties available now than any time since peak in 2007 - When AMRs increasing at double digit rates Dublin market strong and vibrant - Strong market occupancy - AMRs up 5% in one year - AMRs 20% TO 25% lower than market peak in 2007 Lack of professional rental property management - No large corporate / institutional property owners - Leverage proven CAPREIT team and operating practices 14
Panel Discussion For years, we ve heard new rental will be built when the numbers work what are the numbers, and how do they work? Margin? Spread? Costs? Yield? Vacancy projection? Operating costs? Financing? How do you envision lease up? 15
Panel Discussion The market talks rents per square foot but is there a cap on price point? 16
Panel Discussion Are current apartment rental levels in Calgary sustainable? 17
Panel Discussion For a new rental building, what suite mix, unit size, and amenities seem to work best or are required? 18
Panel Discussion What about LEED, recycling, shared parking how important are these to Tenants? 19
Panel Discussion What about The City of Calgary s reaction? Anything notable standout in your application processes? 20
Panel Discussion When you consider purchasing an existing multi-residential asset, are you assessing such opportunities moreso now from the standpoint of: Redevelopment? Additional Density 21
Panel Discussion Have you considered any Forward Sales? Would you buy? Why or why not? 22