First Capital Realty Inc.

First
Capital
Realty Inc.
Acquisition of the ProMed
Medical Office and Retail Properties
TSX: FCR
May 4, 2012
Forward-Looking Statements
This material contains forward-looking statements and information within the meaning of applicable securities
law. These forward-looking statements are not historical facts but reflect the current expectations of First
Capital Realty regarding future results or events and are based on information currently available to
management. Certain material factors and assumptions were applied in providing these forward-looking
statements, many of which are beyond our control.
Management of First Capital Realty believes that the expectations reflected in forward-looking statements
contained herein are based upon reasonable assumptions; however, management can give no assurance that
the actual results or developments will be consistent with these forward-looking statements. These forwardlooking statements are subject to a number of risks and uncertainties that could cause actual results or events
to differ materially from current expectations. Factors that could cause actual results or events to differ
materially from those expressed, implied or projected by forward-looking statements include, but are not
limited to, risks associated with negotiating definitive agreements and satisfying approvals and other conditions
for such a transaction, share price volatility for First Capital Realty and Equity One, Inc. and general economic
conditions.
You should not place undue reliance on any such forward-looking statements. Further, a forward-looking
statement speaks only as of the date on which such statement is made. First Capital Realty undertakes no
obligation to publicly update any such statement or to reflect new information or the occurrence of future
events or circumstances except as required by applicable securities law.
All forward-looking statements in this material are made as of May 4, 2012 (unless otherwise noted) and are
qualified by these cautionary statements.
2
Transaction Highlights
Acquisition of
ProMed Medical Office and Retail Properties of Gazit America Inc. (TSX: GAA)
• 930,000 sq ft gross leasable area
• 12 properties and a 50% interest in a jointly-owned property
• located in Calgary, Edmonton, the Greater Toronto Area, London, Ottawa and the
Greater Montreal Area
• aligns with FCR’s core strategy of urban assets servicing everyday life
• increases AMR from medical, personal services and other professional and office
tenants from approximately 9.0% to 11.0%
• properties are located in growing urban markets, near or adjacent to existing FCR properties
• portfolio has ground floor retail at 11 sites*, with potential for more
• complements FCR’s portfolio within its chosen markets
• leverages FCR’s platform for management, leasing, acquisition, development, operations and financing
Strategic
Rationale
• generates stable cash flows with revenues less sensitive to economic cycles and consumer trends
• attractive assets given aging demographic in Canada
• enhances FCR’s competitive offering to current and prospective medical service and retail tenants
• potential cross-property synergies, as FCR currently owns approximately 140 properties with medical,
personal services and other professional and office tenants
• medical office assets yield 50 – 75 bps above retail assets of similar quality and location
3
Portfolio Summary *
Property Count
Count
Property
12.5
Gross
Gross Leasable
Leasable Area Area
Book Value
Portfolio
IFRS Value
$218M
0.93 M
ProMed - 4%
ProMed - 7%
165.5
23.0 M
FCR - 93%
$5,912M
FCR - 96%
Total: 178 Properties
Total: 23.9 M sq ft
Total: $6,130 M
Major Urban Markets
FCR
GTA, Calgary, Edmonton, Ottawa, Montreal, Quebec City, Vancouver
ProMed
GTA, Calgary, Edmonton, Ottawa, Montreal, London
Average Size Property
FCR
ProMed
4
138,700 sq ft
74,400 sq ft
Occupancy
FCR
ProMed
96.2%
88.4%
Average Lease Rate
FCR
ProMed
$16.81 / ft
$15.78 / sq ft
* As of May 4, 2012: Property Count, GLA, FCR Avg Property Size; remaining data as of December 31, 2011. Meadowlark is counted as owned 50% by FCR and 50% by ProMed.
Geographic Overlap
4.8 M sq ft
26½ properties
5.8 M sq ft
49 properties
320,000 sq ft
2 ½ properties
EDMONTON
CALGARY
10.2 M sq ft
69 properties
457,000 sq ft
8 properties
153,000 sq ft
2 properties
QUEBEC CITY
MONTREAL
OTTAWA
GREATER TORONTO AREA
5
Portfolio Overlap – Leveraging the FCR Platform
EDMONTON, AB
Gazit America
Meadowlark Health & Shopping Centre
156 St. NW and 87 Ave NW, Edmonton, AB
First Capital Realty
Meadowlark Health & Shopping Centre
156 St. NW and 87 Ave NW, Edmonton, AB
Meadowlark Health & Shopping Centre
156 St. NW and 87 Ave NW
Edmonton, AB T5R 1Y5
Misericordia Community Hospital
TORONTO, ON
Bayview Avenue
1670 Bayview Avenue
Toronto, ON M4G 3C2
Gazit America
Bayview Avenue
1670 Bayview Avenue, Toronto, ON
First Capital Realty
Sunnybrook Health Sciences Centre
Leaside Village
85 Laird Road, Toronto, ON
Holland & Bloorview Kids Rehabilitation Hospital
Centre for Addiction and Mental Health
6
Portfolio Overlap – Leveraging the FCR Platform
OTTAWA, ON
First Capital Realty
216 Elgin Street
216 Elgin Street, Ottawa, ON
Kent Professional Building
381 Kent Street
Ottawa, ON K2P 2A8
Gazit America
Kent Professional Building
381 Kent Street, Ottawa, ON
Saint Vincent Hospital
OTTAWA, ON
Nepean Medical Centre
1 Centrepointe Drive
Ottawa, ON K2G 6E2
7
Portfolio Overlap – Leveraging the FCR Platform
LONDON, ON
Westminster Centre
332-346 Wellington Road
London, ON N6C 4P1
London Health Sciences Centre
Parkwood Hospital
Base Line Medical Centre
746 Baseline Road East
London, ON N6C 2R5
CAMBRIDGE, ON
Coronation Medical Centre
695, 697, 715 & 725 Coronation Blvd.
Cambridge, ON N1R 7J9
Cambridge Memorial Hospital
8
Portfolio Overlap – Leveraging the FCR Platform
MONTREAL, QC
Gazit America
5700 Côte-des-Neiges
5700 Chemin de la Côte-des-Neiges, Montreal, QC
First Capital Realty
5700 Côte-des-Neiges
5700 Chemin de la Côte-des-Neiges
Montréal, QE H3S 1Y7
St. Mary’s Hospital Centre
Centre Commercial Van Horne
4885 Van Horne Avenue, Montreal QC
CHU Sainte-Justine
Sir Mortimer B. Davis Jewish General Hospital
LONGUEUIL, QC
Place Adoncour
1215 Chemin du Tremblay
Longueuil, QE J4N 1A2
Hôpital Pierre-Boucher
9
Other Acquired Properties
CALGARY, AB
Sunpark Plaza
31 Sunpark Plaza SE
Calgary, AB T2X 3W5
Gazit America
Sunpark Plaza
31 Sunpark Plaza SE, Calgary, AB
South Community Health Centre
EDMONTON, AB
Gazit America
Kingsway Mews
10503 Kingsway Ave, Edmonton, AB
Kingsway Mews
10503 Kingsway Avenue
Edmonton, AB T5H 4K1
Royal Alexandra Hospital
Glenrose Rehabilitation Hospital
10
Other Acquired Properties
KITCHENER, ON
Gazit America
Belmont Professional Centre
564 Belmont Avenue, Kitchener, ON
Belmont Professional Centre
564 Belmont Avenue
Kitchener, ON N2M 5E3
Grand River Hospital
Gazit America
MISSISSAUGA, ON
King Street West
71 King Street, Mississauga, ON
King Street West
71 King Street West
Mississauga, ON L5B 4A2
Trillium Health Centre
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First Medical Business Strategy
•
•
12
Extending FCR’s presence within the medical / personal services market is appealing
 tenants provide a use not only for “everyday life” but often a necessity
 complementary mix of tenants a significant convenience for customers
 attend medical appointments and then visit on-site lab / medical imaging
 cross-referrals between medical professionals
 fill prescriptions
 patronize coffee shops, restaurants, and other on-site service providers
 buy household items and groceries
 enhances mixed use and residential densification properties
 tenants often utilize B spaces in a property
 doctors are government-funded
‘First Medical’ portfolio will enable FCR to provide a more competitive offering to medical,
personal services and professional tenants
Successful Tenanting Strategy
169 Properties
# of
stores
110 properties have been developed, redeveloped,
expanded or repositioned since 2002.
Over 80% of revenues come from daily necessities
131(1) Supermarket
126 Drugstore
Banks & other
292 Financial Institutions
National &
% of
Rent
18.8
9.7
9.3
173 Discount Retailers
14.6
87
3.2
Liquor Stores
447 Medical Use & Fitness
Fast-food &
521 Coffee Shops
53
13
(1)
Daycare Centres
and Schools
38 of 131 supermarkets have a pharmacy
6.7
6.7
0.8
13
Impact on Capital Structure
FCR Pre-Acquisition
Enterprise Value $6.7 Billion
22.3%
22.3%
5.7%
FCR Pro Forma
Enterprise Value $6.9 Billion
Mortgages and
Secured Credit Facilities
23.3%
Senior Unsecured Debentures
and Unsecured Credit Facilities
21.6%
“Cashless” Convertible
Debentures
5.5%
Equity Capitalization
49.7%
14
49.6%
First Capital Realty Pro Forma (TSX: FCR)
As of May 4, 2012
•
178 properties, 23.9 million sq ft of
gross leasable area
•
273 acres of active and future
development land
•
Total equity capitalization: $3.3 B
•
Total enterprise value: $ 6.9 B
•
•
Management team:
–
Substantial ownership
–
Over 180 years of collective experience
Four strong operating platforms
–
–
–
15
Central, East, West and First Medical
Fully internalized operations
State of the art systems platform
4th Largest
Public Real
Estate Entity
in Canada
Our Focus
16
1
Proactive asset management
and value creation
2
Acquisition of older urban
centres for repositioning and
redevelopment
3
Acquisition of adjacent
properties/sites
4
Densification - retail, office,
residential
5
Improving our cost of both
debt and equity capital
Appendix – ProMed Portfolio Detail
Property
City
Province
Sq Ft
Retail? Floors
GAA Acquisition
Adjacent or Nearby
Cost ($M)
FCR Property
Adjacent Hospital
50-50 JV with FCR
Misericordia Community Hospital
Royal Alexandra Hospital,
Glenrose Rehabilitation Hospital
Meadowlark Health & Shopping Centre* Edmonton
Alberta
153,000

1
$ 42.4
Kingsway Mews
Edmonton
Alberta
42,000

1
$ 9.6
Sunpark Plaza
Calgary
Alberta
125,000

3
$ 34.6
Westminster Medical Centre*
London
Ontario
113,000

1
$ 14.1
London Medical Centre
London
Ontario
49,000

4
Coronation Medical Centre*
Cambridge
Ontario
68,000

1-2
Belmont Professional Centre
Kitchener
Ontario
47,000

4
$ 9.9
Mississauga
Ontario
49,000

5
$ 10.2
Trillium Health Centre
Sunnybrook Health Sciences Centre,
Holland & Bloorview Kids Rehab Hospital,
Centre for Addiction & Mental Health
71 King Street
$ 16.4
South Community Health Centre
Wellington Corners
Wellington Corners
Delta Centre
London Health Sciences Centre,
Parkwood Hospital
London Health Sciences Centre,
Parkwood Hospital
Cambridge Memorial Hospital
Grand River Hospital
1670 Bayview Avenue
Toronto
Ontario
40,000

5
$ 12.5
Leaside Village
Nepean Medical Centre*
Ottawa
Ontario
49,000

4
$ 13.4
College Square
Kent Professional Building
Ottawa
Ontario
42,000

5
$ 10.7
216 Elgin Street
Saint Vincent Hospital
5700 Cote-des-Neiges
Montreal
Quebec
92,000

6
$ 25.4
Centre Commercial Van Horne
St. Mary's Hospital Centre,
Jewish General Hospital, CHU Sainte-Justine
Place Adoncour
Longueuil
Quebec
61,000

3
$ 15.0
Place Roland Therrien
Hôpital Pierre-Boucher
Total
930,000
$ 214.2
Source: Gazit America 2011 Annual Report
*Redevelopment opportunity
17
Over half the medical office portfolio
is located near, or adjacent to, an existing FCR property,
and 12 properties are near a major hospital
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GOOD THINGS HAPPEN WHEN
YOU OWN GOOD REAL ESTATE
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Contact Information
Dori J. Segal, President & CEO
Karen H. Weaver, Executive Vice President & CFO
First Capital Realty Inc.
Shops at King Liberty
85 Hanna Ave, Suite 400
Toronto, Ontario M6K 3S3
Tel (416) 504-4114
Fax (416) 941-1655
www.firstcapitalrealty.ca
TSX: FCR
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