DISCLAIMER CT REIT Second Quarter 2021 Earnings Conference Call Tuesday, August 10, 2021 - 9:00 AM ET
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CT REIT Second Quarter 2021 Earnings Conference Call
Tuesday, August 10, 2021 – 9:00 AM ET
DISCLAIMER
The information contained in this transcript is a textual representation of CT REIT’s (the “REIT”) Q2 2021 results conference call and while efforts
are made to provide an accurate transcription, there may be material errors, omissions, or inaccuracies in the reporting of the substance of the
conference call. This transcript is being made available for information purposes only. The information set out in this transcript is current only as of
the date of the webcast and may be replaced by more current information. The REIT does not undertake to update the information, whether as a
result of new information, future events or otherwise. In no way does the REIT assume any responsibility for any investment or other decisions made
based upon the information provided on the REIT’s web site or in this transcript. Users are advised to review the webcast (available at
www.ctreit.com) itself and the REIT’s regulatory filings before making any investment or other decisions.
FORWARD LOOKING INFORMATION
This document contains forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook for
CT REIT’s business and results of operations.
Forward looking statements are provided for the purposes of providing information about CT REIT’s future outlook and anticipated events or results
and may include statements regarding known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially
from those indicated. Such factors include but are not limited to: general economic conditions; financial position; business strategy; availability of
acquisition opportunities; budgets; capital expenditures; financial results, including fair value adjustments and cash flow assumptions upon which
they are based; cash and liquidity; taxes; and plans and objectives of or involving CT REIT. In addition, the effects of the COVID-19 pandemic (the
“Pandemic”), including variants of concern and any future waves create additional uncertainties. In particular, the impact of any variants of concern and
government authorities’ and public health officials’ responses thereto may effect: our tenants’ ability to pay rent in full or at all; domestic and global
credit and capital markets and our ability to access capital on favourable terms, or at all; the health and safety of our employees and our tenants’
customers and employees; and domestic and global supply chains. Given the evolving circumstances surrounding the Pandemic, its impact on the
REIT’s business and financial results cannot be estimated with certainty as the extent of the impact will largely depend on future developments,
including any additional actions taken to contain any variants of concern. Statements regarding future acquisitions, developments, distributions, results,
performance, achievements, prospects or opportunities for CT REIT or the real estate industry and the impact of the Pandemic are forward-looking
statements. In some cases, forward-looking information can be identified by such terms such as “may”, “might”, “will”, “could”, “should”, “would”,
“occur”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue”, “likely”, “schedule”, or the negative thereof or
other similar expressions concerning matters that are not historical facts.
CT REIT has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect
its financial condition, results of operations, business strategy and financial needs. Such factors and assumptions include but are not limited to: that
the Canadian economy will stabilize over the next 12 months and inflation will remain relatively low, despite government stimulus; that tax laws will
remain unchanged; that the REIT will continue to manage its liquidity and debt covenants; that conditions within the real estate market, including
competition for acquisitions, will normalize to historical levels in the near- to medium-term; that Canadian capital markets will provide CT REIT with
access to equity and/or debt at reasonable rates when required; that Canadian Tire Corporation Limited (CTC) will continue its involvement with CT
REIT on the basis described in its 2020 Annual Information Form and that for the near- to medium-term Canadian Tire stores will remain open, either
fully, for curbside pick-up or for delivery to home, or other available manner as stipulated by government officials. However, given the evolving
circumstances surrounding the Pandemic, including variants of concern, any future waves of the virus and/or the availability and distribution of
vaccines, it is difficult to predict how significant the adverse impact of the Pandemic will be on the global and domestic economy, interest or tax rates,
the general business environments and the operations and financial position of the REIT’s tenants, including Canadian Tire, the fair value ascribed to
CTC tenanted properties and the business, operations and future financial position of the REIT.
Page 1CT REIT Second Quarter 2021 Earnings Conference Call
Tuesday, August 10, 2021 – 9:00 AM ET
Although the forward-looking statements contained herein are based upon assumptions that management of CT REIT believes are reasonable,
based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking
statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the REIT’s
control, that may cause CT REIT’s, or the industry’s, actual results, performance, achievements, prospects and opportunities in future periods to differ
materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors
discussed in section 12 of the REIT’s 2021 Q1 Management Discussion and Analysis and under the “Risk Factors” section of CT REIT’s 2020
Annual Information Form.
For more information on the risks, uncertainties and assumptions that could cause CT REIT’s actual results to differ from current expectations, please
also refer to CT REIT’s public filings available on SEDAR at www.sedar.com and by a link at www.ctreit.com.
CT REIT cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also materially and adversely
affect its results. Investors and other readers are urged to consider the foregoing risks, uncertainties, factors and assumptions carefully in evaluating
the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. Statements that include forward-
looking information do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the
statements are made have on CT REIT’s business. For example, they do not include the effect of any dispositions, acquisitions, asset write-downs or
other charges announced or occurring after such statements are made.
The forward-looking information contained herein is based on certain factors and assumptions made as of the date hereof or the date of the relevant
document incorporated herein by reference, as applicable. CT REIT does not undertake to update the forward-looking information, whether written or
oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as required by applicable
securities laws.
August 10, 2021
Page 2CT REIT Second Quarter 2021 Earnings Conference Call
Tuesday, August 10, 2021 – 9:00 AM ET
CORPORATE PARTICIPANTS Ken Silver, Chief Executive Officer, CT REIT
Ken Silver Thank you Operator, and good morning everyone. We’re
Chief Executive Officer very pleased to welcome you to CT REIT’s second
quarter 2021 investor conference call.
Lesley Gibson
Chief Financial Officer With Canadians having significantly embraced
vaccination, resulting in lower COVID case rates and the
Kevin Salsberg lifting of most public health restrictions, we can be
President, Chief Operating Officer hopeful that the worst of the pandemic is behind us. Yet
we can see with the emergence of the delta variant and
ongoing health crises in various parts of the world that
the future is not without risk. Even given the path we’re
CONFERENCE CALL PARTICIPANTS
currently on, there is much uncertainty still regarding the
safe return to the workplace, schools, travel, and other
Sam Damiani elements of normal life. Nevertheless, in many ways the
TD Securities second quarter marked a transition from a Canadian
economy constrained and impacted by the pandemic to a
Jenny Ma step on the way to a new, somewhat different normal.
BMO Capital Markets
From a CT REIT perspective, we’re pleased to share with
Sumayya Syed you the results of another strong quarter, a quarter which
CIBC to a large extent reflected this transition in the Canadian
economy. One of the key takeaways from the past year
Tal Wooley or so is that throughout the pandemic, our portfolio
National Bank Financial demonstrated tremendous resiliency, delivering
uninterrupted growth in AFFO per unit, a strong balance
sheet and credit metrics, and distribution growth. We
PRESENTATION believe that we are well positioned to navigate whatever
twists and turns may emerge.
Operator
All of these hallmarks of our strong performance were
again reflected in our Q2 results. In addition, renewed
At this time, I would like to welcome everyone to CT
market confidence has contributed to growth in our IFRS
REIT’s Q2 2021 Earnings Results Conference Call.
fair value, driven by strong fundamentals in both the retail
and industrial components of our portfolio. The reduction
The speakers on the today’s call are Ken Silver, Chief
in our bad debt expense is also a reflection of greater
Executive Officer of CT REIT; Lesley Gibson, Chief
confidence in the resilience of our ancillary tenants as the
Financial Officer of CT REIT; and Kevin Salsberg,
economy moved to reopening.
President and Chief Operating Officer of CT REIT.
We are also excited about the growing list of projects that
Today’s discussions may include forward-looking
will support our future growth, with the new investments
statements. Such statements are based on
that we announced yesterday bringing our acquisition
Management’s assumptions and beliefs. These forward-
and development pipeline to approximately 1.25 million
looking statements are subject to uncertainties and other
square feet of attractive, low risk investments.
factors that could cause actual results to differ materially
from such statements. Please see CT REIT’s public
Our resilience and our growth are owing to the success of
filings for a discussion of these risk factors, which are
Canadian Tire, which continues to demonstrate its ability
included in their 2020 MD&A and AIF, which can be
to deliver on the wants and needs of Canadians year-in
found on CT REIT’s website and on SEDAR.
and year-out, through good times and bad for now almost
100 years.
I will now turn the call over to Ken Silver, Chief Executive
Officer of CT REIT. Ken?
With that, I’m going to turn the call over to Kevin to
provide an update on our investing activities and
operations. Lesley will then review the financial aspects
of the quarter before turning the call over for questions.
Page 3CT REIT Second Quarter 2021 Earnings Conference Call
Tuesday, August 10, 2021 – 9:00 AM ET
projects will add a total incremental gross leasable area
Kevin? of approximately 923,000 square feet to the portfolio
upon completion, 95 percent of which has been
preleased.
Kevin Salsberg, President, Chief Operating Officer,
CT REIT As at June 30, 2021, CT REIT’s occupancy rate was 99.2
percent, in line with both Q2 2020 as well as year end.
Thanks Ken, and good morning everyone. I hope you’re
all doing well. With that, I will turn it over to Lesley for a review of our
financial results.
As outlined in yesterday’s press release, we are pleased
to announce five new investments this quarter requiring
an estimated $60.3 million to complete. These new Lesley Gibson, Chief Financial Officer, CT REIT
projects consist of the vend-in of an existing Canadian
Tire store and Canadian Tire Gas Plus gas bar in Thanks Kevin and good morning everyone.
Trenton, Ontario, Canadian Tire store expansions in
Toronto, Ontario, as well as a Canadian Tire store We are again very pleased with the strong Q2 results that
expansion that required the acquisition of land from a CT REIT has delivered. Our rent collections for the
third party in Drummondville, Quebec. Finally, we’ve also second quarter remain stable at 99.7 percent and we
announced the vend-in of land for the development of a reported no bad debt expense, reflecting the stable
new Canadian Tire store and third party tenants in Moose portfolio and health of our tenants. Our reported AFFO
Jaw, Saskatchewan. When completed, these investments per unit on a diluted basis was $0.277, an increase of 8.2
are expected to earn a weighted average going in cap percent compared to Q2 of 2020, reflecting the positive
rate of approximately 6.5 percent and will add roughly net impact of NOI variances, including reduced credit
266,000 square feet of incremental GLA to the portfolio. losses and lower interest expense.
This brings the total new investment activity announced Reported net operating income increased 6.5 percent or
since the beginning of the year to $173 million, $130 $6.1 million in the quarter compared to Q2 2020. The
million of which relates to the expansion and main contributors to this growth are the same store NOI
development of Canadian Tire retail and supply chain results which contributed $3.3 million, as well as
assets. As we continue to work collaboratively alongside intensifications and the acquisition of income-producing
Canadian Tire on these projects, the REIT has properties completed in 2021 and 2020 which contributed
opportunistically engaged in discussions with our largest a further $2.8 million to NOI growth. Even excluding the
tenant surrounding remaining lease terms. credit losses recorded in Q2 of 2020, organic NOI growth
would have been a healthy 4.9 percent.
As can be seen this quarter, these proactive negotiations
allowed us to extend the weighted average lease term for Same store NOI increased by 3.6 percent or $3.3 million
the entire portfolio by almost half a year to 8.9 years, one compared to the Q2 2020, driven by contractual rent
of the longest in the sector. This improvement was escalations contributing $1.5 million and lower provisions
primarily driven by the extension of one Canadian Tire for expected credit losses due to the improving business
distribution centre lease and nine Canadian Tire store environment, which increased NOI by $1.4 million.
leases, and we are pleased to have extended the lease
terms for all but one of the Canadian Tire stores that General and administrative expenses as a percentage of
were set to expire between now and the end of 2023. We revenue were 2.5 percent, which is in line with recent
are in discussions with Canadian Tire regarding possibly quarters.
replacing this remaining location to a larger format store
that will potentially better serve the market in the long The REIT recorded a fair value increase of $106.5 million
term, and we’ll announce further details in the future on our investment properties for the second quarter of
should this project come to fruition. 2021. The increase in the fair value adjustment on
investment properties was driven by changes to the
At the end of the second quarter, CT REIT had 28 investment metrics for both the industrial properties and
properties that were at various stages of development. the retail properties within the portfolio, with about 57
These projects represent a total committed investment of percent of the increase attributable to the industrial and
approximately $280 million upon completion, $66 million the balance to retail. This was supported by recent
of which has already been spent and $54 million of which market activity and external appraisals completed during
we anticipate will be spent in the next 12 months. These the quarter.
Page 4CT REIT Second Quarter 2021 Earnings Conference Call
Tuesday, August 10, 2021 – 9:00 AM ET
Just to, I guess, close the loop on the renewals, which
Our AFFO payout ratio has improved for the three were great to see the lease renewals, did any of those
months ended June 30, 2021 and was 72.6 percent, a renewals—you know, the terms of those, would they
decrease of 3.4 percent from the same period in 2020. interrupt the same store NOI growth that the REIT has
There has also been continued improvement in our debt been enjoying historically in the 2 percent-plus range?
metrics with interest coverage ratio increasing to 3.73
times in Q2 compared to 3.5 times for the second quarter
of 2020. The increase in the interest coverage ratio is Kevin Salsberg, President, Chief Operating Officer,
primarily due to the growth of the EBIT fair value as well CT REIT
as a decrease in the interest and financing charges.
Hey Sam, it’s Kevin. I think you’re basically asking if the
CT REIT’s indebtedness ratio has also improved and was annual rent escalations would be continuing in the
41.6 percent as at June 30, 2021 compared to 42.5 extension terms, and the answer for these lease
percent a quarter ago. The decrease was primarily due to extensions is yes, they will be.
the growth in the property fair value adjustments along
with a reduction in the total indebtedness. In addition,
with $294 million available through our committed credit
Sam Damiani, TD Securities
facilities and $3 million cash on hand, coupled with no
debt maturities for the remainder of 2021, we continue to
Okay great, and the DC lease extension, was that just a
maintain a liquid position.
renewal or was it a blend and extend that might impact
rents in the short term?
Lastly, the book value increased to $15.31 in the current
quarter, up from $14.74 per unit in the first quarter of
2021 primarily due to net income exceeding our
distributions. Kevin Salsberg, President, Chief Operating Officer,
CT REIT
With that, I’ll turn it back over to the Operator for any
questions. It was tied to the expansion that we announced earlier
this year, and they exercised options in conjunction with
the funding.
QUESTION AND ANSWER SESSION
Sam Damiani, TD Securities
Operator
Okay, great. Okay.
Thank you.
Great to see the results showing basically zero impact of
Our first question is from Sam Damiani with TD the pandemic. Do you expect that to continue in the latter
Securities. Please go ahead. half of 2021?
Sam Damiani, TD Securities Lesley Gibson, Chief Financial Officer, CT REIT
Thank you and good morning everyone. Kevin, Sam, it’s Lesley. We’re very happy that that
happened for the second quarter. It is really hard to
predict what’s going to happen in future quarters. I think
Kevin Salsberg, President, Chief Operating Officer, the tenants have shown resilience and have found a way
CT REIT to operate through this, and our rent collections and the
bad debts have virtually gone back to pre-pandemic
Good morning. levels. But, you know, one can’t guarantee what happens
in other quarters, but we certainly hope that is the
continued experience that we have.
Sam Damiani, TD Securities
Page 5CT REIT Second Quarter 2021 Earnings Conference Call
Tuesday, August 10, 2021 – 9:00 AM ET
Sam Damiani, TD Securities
Great. Last question I have before I turn it back is just an Kevin Salsberg, President, Chief Operating Officer,
update on the Brampton Steeles Avenue property, owned CT REIT
by Canadian Tire. Any update on the plans there? Is the
Company still utilizing that space at all? Jenny, I think you’ll see quarter to quarter projects
shifting, both forward and backwards. A lot of that
depends on the municipal approval process and how long
Kevin Salsberg, President, Chief Operating Officer, it takes. In certain jurisdictions, obviously we foresee it
CT REIT happening sooner and it takes longer, or vice versa, and
then obviously construction related delays or not. So, no
It’s Kevin, I’ll take that one. Yes, Canadian Tire continues specific commentary on the projects that moved up or
to use that facility. I think with the robust sales they’ve any rationale. I think it’s just the development process
been generating, they were looking for excess capacity sometimes can be lengthy or sometimes takes less time
and had the facility available to them, so in the short term than we anticipate, and you’ll see some natural
it is still in use. movement within the projects related to that.
We continue discussions with Canadian Tire on the future
of that site and the potential to redevelop it and in Jenny Ma, BMO Capital Markets
conjunction are working on, obviously, concept planning
and working towards advancing some municipal Okay, sounds good. With regards to the Leslie and
approvals over time. Sheppard expansion that was mentioned in the press
release, it says it’s expansion to some current CRU
space. Is that a result of Canadian Tire’s desire to
Sam Damiani, TD Securities expand that specific store, or did you have any tenant
failures that may have brought this opportunity up? Is
Great, thank you. I’ll turn it back. there something specific that you could share about this
location?
Operator
Kevin Salsberg, President, Chief Operating Officer,
Thank you. Our next question is from Jenny Ma with CT REIT
BMO Capital Markets.
Sure, so totally related to Canadian Tire’s desire to
expand that particular location. It was actually the reverse
Jenny Ma, BMO Capital Markets of tenant failures - we had to remove a certain tenant to
accommodate the store expansion, which obviously was
Thanks and good morning. to the benefit of our anchor tenant and financially made
sense to us as well. They just expanded into adjacent
space, was really the story there.
Kevin Salsberg, President, Chief Operating Officer,
CT REIT
Jenny Ma, BMO Capital Markets
Morning.
Okay, great. It’s great to see that the bad debt has
basically been eliminated, so is it safe to assume that
there wasn’t any issue with rent collection as well, that
Jenny Ma, BMO Capital Markets
that was at 100 percent for Q2?
I’m looking at the development pipeline schedule and it
looks like there was some projects that were actually
moved up in terms of time frame. Could you talk to us Lesley Gibson, Chief Financial Officer, CT REIT
about why that was the case - were you able to make a
little bit more progress, or maybe you had been Yes Jenny, our rent collections—you know, we’re
conservative in some of these timing estimates? operating in the 99.7 percent, we’re really close to full
Page 6CT REIT Second Quarter 2021 Earnings Conference Call
Tuesday, August 10, 2021 – 9:00 AM ET
rent collections, and the bad debts for us have effectively that and should we expect a similar pace going forward,
subsided during the quarter, which was great to see. and what payout ratio would you be targeting?
Jenny Ma, BMO Capital Markets Ken Silver, Chief Executive Officer, CT REIT
Okay, great. Do you know if any of your tenants are still Hi Sumayya, it’s Ken. I can’t give you a ton of guidance
taking CERS assistance at all? I realize that it’s not very on distributions - I mean, obviously it’s something we
opaque with this process. review with our Board and that they approve on a
monthly basis, so really it’s a reflection of what’s
happening in the business and what we see going
Lesley Gibson, Chief Financial Officer, CT REIT forward. I wouldn’t infer from what we’ve done in the past
year and make any conclusions about what you might
Yes, I do understand we have a handful of tenants that see going forward.
are still participating with CERS, to the best of our
knowledge.
Sumayya Syed, CIBC
Jenny Ma, BMO Capital Markets Okay, and then just on the investment activity in the
quarter, there was a land vend-in in Moose Jaw, and I’m
Okay, great. Okay, well congratulations on a strong just wondering what does the scope or the pipeline look
quarter. I’ll turn it back. for land held by Canadian Tire that could be REIT
suitable down the line.
Lesley Gibson, Chief Financial Officer, CT REIT
Kevin Salsberg, President, Chief Operating Officer,
Thanks. CT REIT
Well, there’s a couple land banks that Canadian Tire has
owned, some historic, some more recent that are
Operator
strategic to them, and should they decide to move
forward in terms of developing new locations or larger
Thank you.
format stores on those land parcels, that would be the
appropriate time for the REIT to step in and acquire it.
Our next question is from Sumayya Syed with CIBC.
Please go ahead.
Sumayya Syed, CIBC
Sumayya Syed, CIBC
Okay, that’s all from me. Thank you.
Thanks, good morning.
Ken Silver, Chief Executive Officer, CT REIT
Kevin Salsberg, President, Chief Operating Officer,
Great, thank you.
CT REIT
Good morning.
Operator
Thank you. Our next question is from Tal Wooley with
Sumayya Syed, CIBC
National Bank Financial. Please go ahead.
Ken, just firstly on the distribution policy, a bit of a higher
bump announced more recently following, I guess, a
smaller increase last year, so how are you thinking about
Page 7CT REIT Second Quarter 2021 Earnings Conference Call
Tuesday, August 10, 2021 – 9:00 AM ET
Tal Wooley, National Bank Financial
Kevin Salsberg, President, Chief Operating Officer,
Hi, good morning. CT REIT
That is correct, yes.
Ken Silver, Chief Executive Officer, CT REIT
Good morning. Tal Wooley, National Bank Financial
Okay, and I’m just wondering, can you remind me what
Tal Wooley, National Bank Financial exactly the mechanism is? I didn’t have time to look it up
this morning, but I remember there was an end of lease
Just to follow up on Sumayya’s question, she was asking term mechanism that was there, I just can’t remember
about the payout ratio, but obviously you continue to work exactly what it is. Can you just talk about whether this
down your leverage and you’re still seeing good cash was negotiated out or you just followed the mechanism?
flow growth. Maybe we could just expand the question a
little bit more. What’s the goal leverage that maybe you’re
trying to get to? Should we expect CT REIT to sort of Kevin Salsberg, President, Chief Operating Officer,
continue to work down its leverage over time, or given CT REIT
that you continue to build excess cash, you could look at
distribution increases, maybe you look at share The mechanism is basically they had an option to extend
buybacks, that kind of thing. Do you have a sort of sense that they can exercise within 18 months of the expiry of
of where you want that structure to be over the longer the term. The rents are set at market subject to a floor of
haul? not less than the term in the initial—or, the rent in the
initial term, and a ceiling that basically works out to not
greater than roughly 12 percent more than that number.
Lesley Gibson, Chief Financial Officer, CT REIT
These negotiations were done outside of that process.
Tal, it’s Lesley. As far as our leverage goes, yes, we have We’ve obviously had weighted average lease term as a
been sort of slowly working that down. I think where it is focus of ours for a long time now and are obviously in
now, that low 40 percent range is where we’d like to see constant dialogue with Canadian Tire on a number of
it and target it. There’s not a specific goal that’s different items, lease term being one of them. These
significantly lower than that, that we’re actually aiming being strong performing stores and in conjunction with
towards. other discussions around new store development, store
expansions, their program, we came to the conclusion
In terms of stuff like share buybacks, I think we’ve worked that both sides were amenable to dig into the lease
over the last few years to increase float and do other extensions and find win-wins, and that’s how these ones
things, so that’s not something that I would see us came about.
looking to on our radar screen, but—you know, and the
ratio, the payout ratio has moved around and continues
to be lower. Obviously with the recent distribution Tal Wooley, National Bank Financial
increase, that will inch up a smidge. But I think in that
mid-70s range is probably where you’ll see the payout Can you give us some sense of what this—you know, we
ratio land, and we’ll still be looking at wanting to have, I see other peers…obviously hasn’t been an issue for you
guess, conservative leverage compared to our peer guys since your debut in the public market, but can you
group of REITs here. give us some sense of what the renewal spreads were on
those leases?
Tal Wooley, National Bank Financial
Kevin Salsberg, President, Chief Operating Officer,
Okay. Then just to go back to the lease extensions for a CT REIT
second, Kevin, I think you said basically you’ve handled
all of the CTC leases, except for one, through to 2023. Well, as I mentioned to Sam’s question, the lease
Do I have that correct? extensions provide for the same annual rent increases as
in the initial term.
Page 8CT REIT Second Quarter 2021 Earnings Conference Call
Tuesday, August 10, 2021 – 9:00 AM ET
Okay.
Tal Wooley, National Bank Financial
Kevin Salsberg, President, Chief Operating Officer,
Okay, so it’s just more a continuation of that than you’re CT REIT
seeing a big step…? Got it.
Once we, I guess, bring those to fruition, we’ll have some
more to say about it.
Kevin Salsberg, President, Chief Operating Officer,
CT REIT
Tal Wooley, National Bank Financial
Yes, exactly.
Okay, perfect. Thank you very much.
Tal Wooley, National Bank Financial
Kevin Salsberg, President, Chief Operating Officer,
Then just finally, the triple-net market, how—you know, CT REIT
have you seen many good deals outside of the
transactions you’re doing at Canadian Tire these days? Thank you.
Kevin Salsberg, President, Chief Operating Officer, Operator
CT REIT
Thank you. Our next question is from Sam Damiani with
A couple interesting things out there that we are seeing TD Securities. Please go ahead.
and working on. I think you’ve probably heard
commentary from some of our other retail REIT peers
around just the depth of demand for obviously grocery Sam Damiani, TD Securities
and essential needs retail, so there’s a couple
transactions that we are aware of that are either tied up Thank you. I just wanted to see if there was an update on
or closed, that are really driving cap rates down for strong Canada Square with the approvals and the expected
retail assets. I’d say there was a good amount of timeline, any update on the LRT, etc.?
marketed product that came out first part of the year. It’s
a little slower now in the mid part of the summer, but I
think there’s still lots of capital, private and otherwise,
Ken Silver, Chief Executive Officer, CT REIT
chasing these deals and hopefully in the fall, we’ll see
some new supply to address that demand.
Hi Sam, it’s Ken. I’m happy to give you an update,
although there is not a ton of new news. Our
development manager Oxford Properties continues to
Tal Wooley, National Bank Financial advance the building design for the first phase as well as
the overall municipal approval process.
But nothing out there that you guys were dying to get
your hands on? Nothing’s changed from a timing perspective as we
continue to be subject to the timing of the completion of
the LRT. Again, lands that Metrolinx is using for the
Kevin Salsberg, President, Chief Operating Officer, construction of the project at the north end of the site are
CT REIT part of the Phase 1 lands, and there’s been no new
announcements from them. We are still expecting a
Like I said, there’s some transactions out there that we construction start in 2023.
are looking at and working on…
With respect to the municipal approval process, obviously
this is a very significant site at a key location in the City of
Tal Wooley, National Bank Financial Toronto, and we would expect it to be given careful
consideration by many stakeholders.
Page 9CT REIT Second Quarter 2021 Earnings Conference Call
Tuesday, August 10, 2021 – 9:00 AM ET
Our master plan concept reflects the policies and
guidelines. The City developed the site over a significant
number of years, so we continue to work with the City to
advance the application.
Sam Damiani, TD Securities
That’s great. Thank you very much, and I’ll turn it back.
Ken Silver, Chief Executive Officer, CT REIT
Thanks Sam.
Operator
Thank you. As there are no further questions registered
at this time, I will turn the call over to Ken Silver, CEO for
closing remarks.
Ken Silver, Chief Executive Officer, CT REIT
Thank you Operator, and thank you all for joining us
today. Enjoy the rest of the summer and we look forward
to speaking with you all in November.
Operator
Thank you. This concludes today’s call. You may now
disconnect.
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