Investor Relations, Northern Property Real Estate Investment Trust
Opportunity to invest in one of the fastest growing economies in Canada with the dominant player in the northern Canadian real estate market.
Unique REIT opportunity
• Strong economic environment in northern Canada
• Economy driven by oil and gas exploration and production, diamond and gold mining, government administration and tourism.
• Substantial GDP growth and high per capita income.
• NWT has the highest per capita GDP in Canada, GDP grew by 8.8% in 2000 and 20% in 2001.
• Nunavut’s per capita GDP exceeds the Canadian average.
• NPR REIT is the dominant player in northern Canada and there are significant structural impediments to new competition.
Strong real estate fundamentals
• Shortage of rental housing in NPR’s primary markets of Yellowknife, NWT and Iqaluit, Nunavut and significant barriers to entry have resulted in strong and growing rental rates.
• Cashflows supported by credit worthy tenants such as government and large corporations - 58% of revenues from leases to Federal and Territorial governments and large corporations.
• Higher capitalization rates, in combination with CMHC guaranteed financing, offers significant positive spread investing opportunities.
Stable and growing cashflows
• Normalized adjusted funds from operations exceed cash distributions at 90% payout ratio.
• Occupancy rates close to 100% for the last 10 years.
• Stable income from high quality tenants and predictable operating costs.
• Low capital investment requirements – properties well maintained and relatively new.
Opportunities for growth
• Unique opportunity to consolidate a fragmented industry, create value through leveraging management’s expertise and gaining economies of scale.
• Strategic alliance with one of northern Canada’s leading developers, provides a pipeline of further acquisition opportunities.
• Internal asset and property management.
• Management and Trustees to hold a significant stake in the REIT of approximately 14%.