spire real estate limited partnership amazonaws com
D E C E M B E R 31, 2013
SPIRE REAL ESTATE LIMITED PARTNERSHIP Performance
Key Statistics YTD
1 Year
3 Year
5 Year
Since Inception
Total Return+
10.0%
10.0%
10.4%
10.3%
9.8%
12 Month Trailing Distribution Yield
7.2%
$462.5 million
Net Asset Value
$241.0 million
Structure
Past performance is not indicative of future results.
Investment Activity - 2013
Limited Partnership
Inception Date
December 2005
NAV Per Unit*
$114.03
Number of Units
NUMBER OF PROPERTIES
GROSS PURCHASE PRICE
Acquisitions
9
$102.30 million
Dispositions
1
$12.00 million
Acquisitions Under Contract
-
-
Dispositions Under Contract
-
-
Gross Asset Value by Location
Other 13%
BC 31%
Industrial 19%
24
Total Square Feet
2,320,546
Portfolio Occupancy
95%
Average Cap Rate
6.4%
Average Cost of Debt
4.3%
Portfolio Occupancy by SF 1,000,000.00 800,000.00 Unoccupied
600,000.00
Office 18%
AB 34%
SK 3%
47%
Number of Assets
1,200,000.00
Self Storage 13%
MB 10%
2,113,105
Debt Leverage Ratio
Gross Asset Value by Type
ON Spire US 6% 3%
Other 13%
Total Asset Value
Occupied 400,000.00 200,000.00
Retail 34%
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
B R A E S H O P P I N G C E N T R E , C A L G A R Y, A B
D E C E M B E R 31, 2013
2013 Highlights
Investment Criteria
• 2013 was a very active year for investment activity for SPIRE. We completed one sale and four
• Clear focus on hard asset, cash flowing real
acquisitions (9 total properties) including SPIRE’s first property acquisition in Toronto.
estate where the primary revenue source comes
ǡǡ In March we closed on the purchase of Lougheed Super Center, a fully leased, 81,115 sf
from tenant rents.
retail center in Coquitlam. The purchase price of $29.6 million represented a 6.4% cap rate.
• Emphasis on procuring assets in Western
ǡǡ In July we closed on the sale of the Steels Calgary building, a 97,000 sf property that was
Canada’s major markets and close proximity
leased to Steels Building Products through the end of March, 2013. The property was sold
suburban areas, with targeted expansion into
to an owner-user for $12.0 million.
Central Canada as opportunities present.
ǡǡ In August we closed on the purchase of Aero Industrial, a portfolio of five industrial properties well located five mintues’ drive from Pearson International Airport in Toronto. The portfolio comprises 416,018 sf of light industrial and warehouse distribution space on 19.5 acres. The purchase price of $29.2 million represented a 6.8% cap rate.
• Return on equity targeted at 10% over a minimum 5-10 year hold. • Continued low tolerance for risk as evidenced by a targeted portfolio leverage of 50% and
ǡǡ In September we closed on the purchase of Deerfoot Junction 3, a 79,927 sf, 98% leased
individual investment’s minimum 200 basis
multi-tenant office building located at the intersection of Deerfoot Trail NE and 32nd
point spread between cap rate and cost of
Avenue NE in Calgary. The purchase price of $20.4 million represented a 6.2% cap rate
capital.
and complements our existing properties Deerfoot Junction 1 and 2, acquired in late 2012.
• Focus on capital preservation while underwriting
ǡǡ In September we closed on the purchase of the Cathedral Energy Alberta portfolio
potential risks to minimize possible loss of
comprising two 100% leased office and industrial buildings located in Calgary and Nisku.
capital and/or income through property, tenant
The purchase price for the portfolio was $22.8 million and represented a 6.3% cap rate.
covenant, cap rate and interest rate fluctuations.
• In the fourth quarter we completed significant operational changes reassigning the property
• Investment opportunities are sourced through
management of many of SPIRE’s assets to best in class commercial property management
third party vendors ensuring no conflicts of
firms with substantial local expertise. We continue to actively oversee and work closely with
interest, and all properties are appraised on
the property managers for all of SPIRE’s assets.
an annual basis by independent appraisers,
• We continue to actively seek well located, well leased, quality assets to add to the SPIRE
ensuring accurate market-based valuations.
portfolio. In the fourth quarter we made a bid to acquire a new 95,868 sf, Class A office property in Mississauga, Ontario. We were outbid in the final round of offers for this attractive building by a Canadian institutional investor with lower return criteria than SPIRE.
$100,000 Invested Since Inception 220,000
$213,612
200,000 180,000 160,000 140,000 120,000
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. • *NAV per unit is calculated as of December 31, 2013. • +Returns are calculated on a calendar-quarter basis and may differ from client returns which are updated with a 1 month lag
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+
10.0%
10.0%
10.4%
10.3%
9.8%
12 Month Trailing Distribution Yield
7.2%
$462.5 million
Net Asset Value
$241.0 million
Structure
Past performance is not indicative of future results.
Investment Activity - 2013
Limited Partnership
Inception Date
December 2005
NAV Per Unit*
$114.03
Number of Units
NUMBER OF PROPERTIES
GROSS PURCHASE PRICE
Acquisitions
9
$102.30 million
Dispositions
1
$12.00 million
Acquisitions Under Contract
-
-
Dispositions Under Contract
-
-
Gross Asset Value by Location
Other 13%
BC 31%
Industrial 19%
24
Total Square Feet
2,320,546
Portfolio Occupancy
95%
Average Cap Rate
6.4%
Average Cost of Debt
4.3%
Portfolio Occupancy by SF 1,000,000.00 800,000.00 Unoccupied
600,000.00
Office 18%
AB 34%
SK 3%
47%
Number of Assets
1,200,000.00
Self Storage 13%
MB 10%
2,113,105
Debt Leverage Ratio
Gross Asset Value by Type
ON Spire US 6% 3%
Other 13%
Total Asset Value
Occupied 400,000.00 200,000.00
Retail 34%
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
B R A E S H O P P I N G C E N T R E , C A L G A R Y, A B
D E C E M B E R 31, 2013
2013 Highlights
Investment Criteria
• 2013 was a very active year for investment activity for SPIRE. We completed one sale and four
• Clear focus on hard asset, cash flowing real
acquisitions (9 total properties) including SPIRE’s first property acquisition in Toronto.
estate where the primary revenue source comes
ǡǡ In March we closed on the purchase of Lougheed Super Center, a fully leased, 81,115 sf
from tenant rents.
retail center in Coquitlam. The purchase price of $29.6 million represented a 6.4% cap rate.
• Emphasis on procuring assets in Western
ǡǡ In July we closed on the sale of the Steels Calgary building, a 97,000 sf property that was
Canada’s major markets and close proximity
leased to Steels Building Products through the end of March, 2013. The property was sold
suburban areas, with targeted expansion into
to an owner-user for $12.0 million.
Central Canada as opportunities present.
ǡǡ In August we closed on the purchase of Aero Industrial, a portfolio of five industrial properties well located five mintues’ drive from Pearson International Airport in Toronto. The portfolio comprises 416,018 sf of light industrial and warehouse distribution space on 19.5 acres. The purchase price of $29.2 million represented a 6.8% cap rate.
• Return on equity targeted at 10% over a minimum 5-10 year hold. • Continued low tolerance for risk as evidenced by a targeted portfolio leverage of 50% and
ǡǡ In September we closed on the purchase of Deerfoot Junction 3, a 79,927 sf, 98% leased
individual investment’s minimum 200 basis
multi-tenant office building located at the intersection of Deerfoot Trail NE and 32nd
point spread between cap rate and cost of
Avenue NE in Calgary. The purchase price of $20.4 million represented a 6.2% cap rate
capital.
and complements our existing properties Deerfoot Junction 1 and 2, acquired in late 2012.
• Focus on capital preservation while underwriting
ǡǡ In September we closed on the purchase of the Cathedral Energy Alberta portfolio
potential risks to minimize possible loss of
comprising two 100% leased office and industrial buildings located in Calgary and Nisku.
capital and/or income through property, tenant
The purchase price for the portfolio was $22.8 million and represented a 6.3% cap rate.
covenant, cap rate and interest rate fluctuations.
• In the fourth quarter we completed significant operational changes reassigning the property
• Investment opportunities are sourced through
management of many of SPIRE’s assets to best in class commercial property management
third party vendors ensuring no conflicts of
firms with substantial local expertise. We continue to actively oversee and work closely with
interest, and all properties are appraised on
the property managers for all of SPIRE’s assets.
an annual basis by independent appraisers,
• We continue to actively seek well located, well leased, quality assets to add to the SPIRE
ensuring accurate market-based valuations.
portfolio. In the fourth quarter we made a bid to acquire a new 95,868 sf, Class A office property in Mississauga, Ontario. We were outbid in the final round of offers for this attractive building by a Canadian institutional investor with lower return criteria than SPIRE.
$100,000 Invested Since Inception 220,000
$213,612
200,000 180,000 160,000 140,000 120,000
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. • *NAV per unit is calculated as of December 31, 2013. • +Returns are calculated on a calendar-quarter basis and may differ from client returns which are updated with a 1 month lag
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
