spire real estate limited partnership Simple Storage Service
O C T O B E R 31, 2013
SPIRE REAL ESTATE LIMITED PARTNERSHIP Performance
Key Statistics YTD
1 Year
3 Year
5 Year
Since Inception
Total Return
8.9%
10.3%
11.6%
9.5%
9.9%
12 Month Trailing Distribution Yield
7.2%
Total Asset Value
$446.0 million
Net Asset Value
$230.3 million
Structure
Limited Partnership
Inception Date
Past performance is not indicative of future results.
December 2005
NAV Per Unit
Investment Activity
$114.30
Number of Units NUMBER OF PROPERTIES
GROSS PURCHASE PRICE
Acquisitions
3
$72.4 million
Dispositions
-
-
Acquisitions Under Contract
-
-
Dispositions Under Contract
-
-
Gross Asset Value by Location BC 32%
Debt Leverage Ratio
Gross Asset Value by Type
ON Spire US 7% 3%
Other 10%
2,014,685 47%
Number of Assets
24
Total Square Feet
2,323,400
Portfolio Occupancy
95%
Average Cap Rate
6.4%
Average Cost of Debt
4.4%
Portfolio Occupancy by SF 1,200,000.00
Industrial 20%
Self Storage 14%
1,000,000.00 800,000.00 Unoccupied
600,000.00
Office 18%
AB 35% MB 10% Other 10%
SK 3%
Occupied 400,000.00 200,000.00
Retail 35%
Spire US 3%
Industrial
Retail
Office
Self Storage
SPIRE REAL ESTATE LP Overview SPIRE REAL ESTATE LP (SPIRE) holds a diversified portfolio of income-producing real estate with a focus on longer term holds of assets primarily in Canada’s larger urban markets. SPIRE has an emphasis on delivering consistent returns through a focus on property fundamentals: rental income, debt amortization, value-add and market appreciation. SPIRE’s diversified mix of real estate holdings include retail, office, industrial, self-storage and multi-family (through an investment in SPIRE US LP). Distributions to unit-holders are currently 7.2% SPIRE, through its asset manager Nicola Crosby, offers the clients of Nicola Wealth Management an opportunity to invest in direct real estate with an experienced management team. Since the inception of SPIRE LP, the directors of Nicola Crosby have invested a significant amount of their own capital alongside the individual investors.
N I C O L A C R O S B Y R E A L E S TAT E A S S E T M A N A G E M E N T
Contact Information Wayman Crosby, CEO Nicola Crosby Real Estate Asset Management Ltd. SPIRE General Partner Ltd. 420-1508 West Broadway Vancouver, BC V6J 1W8 T: + 1-778-383-6941 E: [email protected] W W W. N I C O L A C R O S B Y. C O M
C AT H E D R A L E N E R G Y H E A D O F F I C E , C A L G A R Y, A B
O C T O B E R 31, 2013
Quarter Highlights
Investment Criteria
• On August 15 we closed on the acquisition of Aero Industrial, a portfolio of seven single
• Clear focus on hard asset, cash flowing real
tenant and two multi-tenant industrial buildings well located five minutes’ drive from
estate where the primary revenue source comes
Pearson International Airport in Toronto. Aero Industrial comprises 416,018 square feet of
from tenant rents.
light industrial and warehouse distribution space on 19.5 acres and is leased to a diversified tenant base. The portfolio was acquired for $29,200,000 representing a 6.8% cap rate based on the existing 88.5% occupancy. The transaction was structured with a credit of $911,701 on closing to account for one year of income and leasing expenses for the existing vacant space. • On September 23 we closed on the acquisition of Deerfoot Junction 3, a five-story office building located at the intersection of Deerfoot Trail NE and 32nd Avenue NE in Calgary. The purchase price of $20,400,000 represented a 6.2% cap rate. The property comprises 79,927 square feet and is 95% leased to an attractive tenant roster including Alberta Infrastructure, the City of Calgary and First Calgary Financial.
• Emphasis on procuring assets in Western Canada’s major markets and close proximity suburban areas, with targeted expansion into Central Canada as opportunities present. • Return on equity targeted at 10-12% over a minimum 5-10 year hold. • Continued low tolerance for risk as evidenced by a targeted portfolio leverage of 50% and
• On September 27 we closed on the acquisition of the Cathedral Energy Alberta Portfolio
individual investment’s minimum 200 basis
comprising two 100% leased office and industrial buildings located in Calgary and Nisku
point spread between cap rate and cost of
(Edmonton). The Calgary building comprises 71,192 square feet on 2.96 acres and underwent
capital.
a full renovation in 2011. The Nisku building was built in 2008 and comprises 34,235 square feet on 4.89 acres. The purchase price of the portfolio was $22,800,000 representing a 6.3% cap rate. The transaction was structured as a 15-year sale lease back with CET, a Toronto Stock Exchange listed company, and leading provider of drilling, completion and production testing services to oil and natural gas companies. • During the third quarter we secured attractive financing terms for all three new acquisitions. The Aero Industrial portfolio acquisition was financed with a $17,700,000 loan from Manulife
• Focus on capital preservation while underwriting potential risks to minimize possible loss of capital and/or income through property, tenant covenant, cap rate and interest rate fluctuations. • Investment opportunities are sourced through third party vendors ensuring no conflicts of
Financial representing a 61% loan to value (LTV). The loan has a five year term, 25-year
interest, and all properties are appraised on
amortization and 3.6% interest rate. The acquisition of Deerfoot Junction 3 was completed
an annual basis by independent appraisers,
with a $13,812,500 loan (68% LTV) from CIBC. The loan has a five year term, 25-year
ensuring accurate market-based valuations.
amortization and 3.9% interest rate. National Bank provided acquisition financing for the Cathedral Energy Services Alberta portfolio. The $14,820,000 loan (65% LTV) has a five year term, 25-year amortization and 3.8% interest rate.
$100,000 Invested Since Inception 220,000
$211,564
Disclaimer
• Past performance is not indicative of future results. • Returns are net of LP expenses. • This investment is only available for sale to residents of Canada who are accredited investors. Please read the Limited Partnership Agreement and subscription documents for additional details and important disclosure information. • This does not constitute an offer of sale. • Please speak with a Nicola Wealth Management advisor to discuss if this investment is right for you. www.nicolawealth.com
200,000 180,000 160,000 140,000 120,000 100,000 2005
2006
2007
2008
2009
2010
N I C O L A C R O S B Y R E A L E S TAT E A S S E T M A N A G E M E N T
2011
2012
2013
W W W. N I C O L A C R O S B Y. C O M
SPIRE REAL ESTATE LIMITED PARTNERSHIP Performance
Key Statistics YTD
1 Year
3 Year
5 Year
Since Inception
Total Return
8.9%
10.3%
11.6%
9.5%
9.9%
12 Month Trailing Distribution Yield
7.2%
Total Asset Value
$446.0 million
Net Asset Value
$230.3 million
Structure
Limited Partnership
Inception Date
Past performance is not indicative of future results.
December 2005
NAV Per Unit
Investment Activity
$114.30
Number of Units NUMBER OF PROPERTIES
GROSS PURCHASE PRICE
Acquisitions
3
$72.4 million
Dispositions
-
-
Acquisitions Under Contract
-
-
Dispositions Under Contract
-
-
Gross Asset Value by Location BC 32%
Debt Leverage Ratio
Gross Asset Value by Type
ON Spire US 7% 3%
Other 10%
2,014,685 47%
Number of Assets
24
Total Square Feet
2,323,400
Portfolio Occupancy
95%
Average Cap Rate
6.4%
Average Cost of Debt
4.4%
Portfolio Occupancy by SF 1,200,000.00
Industrial 20%
Self Storage 14%
1,000,000.00 800,000.00 Unoccupied
600,000.00
Office 18%
AB 35% MB 10% Other 10%
SK 3%
Occupied 400,000.00 200,000.00
Retail 35%
Spire US 3%
Industrial
Retail
Office
Self Storage
SPIRE REAL ESTATE LP Overview SPIRE REAL ESTATE LP (SPIRE) holds a diversified portfolio of income-producing real estate with a focus on longer term holds of assets primarily in Canada’s larger urban markets. SPIRE has an emphasis on delivering consistent returns through a focus on property fundamentals: rental income, debt amortization, value-add and market appreciation. SPIRE’s diversified mix of real estate holdings include retail, office, industrial, self-storage and multi-family (through an investment in SPIRE US LP). Distributions to unit-holders are currently 7.2% SPIRE, through its asset manager Nicola Crosby, offers the clients of Nicola Wealth Management an opportunity to invest in direct real estate with an experienced management team. Since the inception of SPIRE LP, the directors of Nicola Crosby have invested a significant amount of their own capital alongside the individual investors.
N I C O L A C R O S B Y R E A L E S TAT E A S S E T M A N A G E M E N T
Contact Information Wayman Crosby, CEO Nicola Crosby Real Estate Asset Management Ltd. SPIRE General Partner Ltd. 420-1508 West Broadway Vancouver, BC V6J 1W8 T: + 1-778-383-6941 E: [email protected] W W W. N I C O L A C R O S B Y. C O M
C AT H E D R A L E N E R G Y H E A D O F F I C E , C A L G A R Y, A B
O C T O B E R 31, 2013
Quarter Highlights
Investment Criteria
• On August 15 we closed on the acquisition of Aero Industrial, a portfolio of seven single
• Clear focus on hard asset, cash flowing real
tenant and two multi-tenant industrial buildings well located five minutes’ drive from
estate where the primary revenue source comes
Pearson International Airport in Toronto. Aero Industrial comprises 416,018 square feet of
from tenant rents.
light industrial and warehouse distribution space on 19.5 acres and is leased to a diversified tenant base. The portfolio was acquired for $29,200,000 representing a 6.8% cap rate based on the existing 88.5% occupancy. The transaction was structured with a credit of $911,701 on closing to account for one year of income and leasing expenses for the existing vacant space. • On September 23 we closed on the acquisition of Deerfoot Junction 3, a five-story office building located at the intersection of Deerfoot Trail NE and 32nd Avenue NE in Calgary. The purchase price of $20,400,000 represented a 6.2% cap rate. The property comprises 79,927 square feet and is 95% leased to an attractive tenant roster including Alberta Infrastructure, the City of Calgary and First Calgary Financial.
• Emphasis on procuring assets in Western Canada’s major markets and close proximity suburban areas, with targeted expansion into Central Canada as opportunities present. • Return on equity targeted at 10-12% over a minimum 5-10 year hold. • Continued low tolerance for risk as evidenced by a targeted portfolio leverage of 50% and
• On September 27 we closed on the acquisition of the Cathedral Energy Alberta Portfolio
individual investment’s minimum 200 basis
comprising two 100% leased office and industrial buildings located in Calgary and Nisku
point spread between cap rate and cost of
(Edmonton). The Calgary building comprises 71,192 square feet on 2.96 acres and underwent
capital.
a full renovation in 2011. The Nisku building was built in 2008 and comprises 34,235 square feet on 4.89 acres. The purchase price of the portfolio was $22,800,000 representing a 6.3% cap rate. The transaction was structured as a 15-year sale lease back with CET, a Toronto Stock Exchange listed company, and leading provider of drilling, completion and production testing services to oil and natural gas companies. • During the third quarter we secured attractive financing terms for all three new acquisitions. The Aero Industrial portfolio acquisition was financed with a $17,700,000 loan from Manulife
• Focus on capital preservation while underwriting potential risks to minimize possible loss of capital and/or income through property, tenant covenant, cap rate and interest rate fluctuations. • Investment opportunities are sourced through third party vendors ensuring no conflicts of
Financial representing a 61% loan to value (LTV). The loan has a five year term, 25-year
interest, and all properties are appraised on
amortization and 3.6% interest rate. The acquisition of Deerfoot Junction 3 was completed
an annual basis by independent appraisers,
with a $13,812,500 loan (68% LTV) from CIBC. The loan has a five year term, 25-year
ensuring accurate market-based valuations.
amortization and 3.9% interest rate. National Bank provided acquisition financing for the Cathedral Energy Services Alberta portfolio. The $14,820,000 loan (65% LTV) has a five year term, 25-year amortization and 3.8% interest rate.
$100,000 Invested Since Inception 220,000
$211,564
Disclaimer
• Past performance is not indicative of future results. • Returns are net of LP expenses. • This investment is only available for sale to residents of Canada who are accredited investors. Please read the Limited Partnership Agreement and subscription documents for additional details and important disclosure information. • This does not constitute an offer of sale. • Please speak with a Nicola Wealth Management advisor to discuss if this investment is right for you. www.nicolawealth.com
200,000 180,000 160,000 140,000 120,000 100,000 2005
2006
2007
2008
2009
2010
N I C O L A C R O S B Y R E A L E S TAT E A S S E T M A N A G E M E N T
2011
2012
2013
W W W. N I C O L A C R O S B Y. C O M
