spire real estate limited partnership
J U LY 31, 2013
SPIRE REAL ESTATE LIMITED PARTNERSHIP Performance
Key Statistics YTD
1 Year
3 Year
5 Year
Since Inception
Total Return
6.5%
9.8%
11.5%
9.5%
10.1%
12 Month Trailing Distribution Yield
7.3%
Net Asset Value
$212.9 million Limited Partnership
Inception Date
December 2005
NAV Per Unit
Investment Activity
$113.70
Number of Units NUMBER OF PROPERTIES
GROSS PURCHASE/ SHARE PRICE (LP SHARE)
Acquisitions
1
$29.9 million
Dispositions
1
$12.0 million
Acquisitions Under Contract
2
$50.5 million
Dispositions Under Contract
-
-
Gross Asset Value by Location SPIRE US Other 4% 10%
AB 31%
SPIRE US Other 4% 10%
MB SK
43%
Number of Assets
16
Total Square Feet
1,744,739
Portfolio Occupancy
97%
Average Cap Rate
6.5%
Average Cost of Debt
4.5%
Portfolio Occupancy by SF 700,000.00 700,000
Industrial 14%
600,000.00 600,000
Industrial
SelfStorage 17%
1,872,236
Debt Leverage Ratio
Gross Asset Value by Type
BC AB
MB 12%
$365.4 million
Structure
Past performance is not indicative of future results.
SK 4%
Total Asset Value
Office 12%
Office Retail Self Storage
Other
Other
Spire US
Spire US
500,000.00 500,000 400,000.00 400,000
Unoccupied Unoccupied
300,000.00 300,000
Occupied Occupied
200,000.00 200,000 100,000.00 100,000 -
BC 39%
Retail 43%
Industrial Industrial
Retail Retail
Office Self-Storage Self Storage Office
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 consistently provided distributions of 7 to 8 percent per annum based on Net Asset Value (NAV), paid monthly or through a dividend reinvestment plan (DRIP) to investors. SPIRE’s mix of real estate holdings include retail, office, industrial, self-storage and multi-family residential (through an investment in SPIRE US LP). Distributions 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. The directors of Nicola Crosby believe in SPIRE and have invested a signficant amount of their own capital.
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
LOUGHEED SUPER CENTRE, COQUITLAM, BC
J U LY 31, 2013
Year to Date Highlights
Investment Criteria
• Despite the challenges of the current low interest and cap rate environment, SPIRE is success-
• Clear focus on hard asset, cash flowing real
fully procuring well located, quality assets that meet our investment criteria. • In March we closed on the purchase of Lougheed Super Centre in Coquitlam, BC for $29.9
estate where the primary revenue source comes from tenant rents.
million representing a 6.4% cap rate. Well located with over 650 feet of frontage on Lougheed
• Emphasis on procuring assets in Western
Highway, Lougheed Super Centre comprises 81,115 square feet and is 100% leased to an
Canada’s major markets and close proximity
attractive tenant roster which includes Cactus Club Café, HomeSense, Reitmans, Bowring and
suburban areas, with targeted expansion into
Canadian Western Bank.
Central Canada as opportunities present.
• In May the extensive renovations and tenant improvement build-out at Deerfoot Junction II were completed. Trimac Management Services took occupancy, having moved their head office location from downtown Calgary. Trimac leased the 45,523 square foot premises at Deerfoot Junction II for a term of 10 years.
• 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
• We are under contract for the purchase of Aero Industrial Park, a nine building portfolio
individual investment’s minimum 200 basis
situated a few minutes’ drive from Pearson International Airport and 30 minutes’ drive from
point spread between cap rate and cost of
downtown Toronto. The portfolio comprises 416,000 square feet and is 89% leased primarily
capital.
to assembly and warehouse distribution tenants including Farrex Freight Systems, APEX Tool
• Focus on capital preservation while underwriting
Group and Springwall Sleep Products. The acquisition price of $29.2 million reflects a 6.2%
potential risks to minimize possible loss of
cap rate. We have negotiated an adjustment in favour of the purchaser for 12 months of rent
capital and/or income through property, tenant
and all leasing costs for the vacant space. The acquisition is scheduled to close on August 15.
covenant, cap rate and interest rate fluctuations.
• In early July we closed on the sale of the Steels Calgary building, a 97,000 square foot property
• Investment opportunities are sourced through
that was leased to Steels Building Products through the end of the first quarter of 2013. The
third party vendors ensuring no conflicts of
property was sold to an owner-user for $12.0 million.
interest, and all properties are appraised on
• In early July we leased SPIRE’s 105,445 square foot industrial property in Saskatoon which became vacant in mid-2012 after the tenant went into receivership. The new tenant, System
an annual basis by independent appraisers, ensuring accurate market-based valuations.
Build Development, signed a five-year lease for the entire building and will use the premises to manufacture modular homes. • With recent flooding this spring in the Calgary Region, none of our assets were affected or sustained damage.
$100,000 Invested Since Inception
Disclaimer
220,000
$220,000
$205,266 $206,762
200,000
$200,000 180,000
$180,000
160,000
$160,000
140,000
$140,000
• 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
120,000
$120,000
100,000 $100,000 Dec-2005 2005
Dec-2006
2006
Dec-2007
2007
Dec-2008
2008
Dec-2009
2009
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
Dec-2010
2010
Dec-2011
2011
Dec-2012
2012
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
6.5%
9.8%
11.5%
9.5%
10.1%
12 Month Trailing Distribution Yield
7.3%
Net Asset Value
$212.9 million Limited Partnership
Inception Date
December 2005
NAV Per Unit
Investment Activity
$113.70
Number of Units NUMBER OF PROPERTIES
GROSS PURCHASE/ SHARE PRICE (LP SHARE)
Acquisitions
1
$29.9 million
Dispositions
1
$12.0 million
Acquisitions Under Contract
2
$50.5 million
Dispositions Under Contract
-
-
Gross Asset Value by Location SPIRE US Other 4% 10%
AB 31%
SPIRE US Other 4% 10%
MB SK
43%
Number of Assets
16
Total Square Feet
1,744,739
Portfolio Occupancy
97%
Average Cap Rate
6.5%
Average Cost of Debt
4.5%
Portfolio Occupancy by SF 700,000.00 700,000
Industrial 14%
600,000.00 600,000
Industrial
SelfStorage 17%
1,872,236
Debt Leverage Ratio
Gross Asset Value by Type
BC AB
MB 12%
$365.4 million
Structure
Past performance is not indicative of future results.
SK 4%
Total Asset Value
Office 12%
Office Retail Self Storage
Other
Other
Spire US
Spire US
500,000.00 500,000 400,000.00 400,000
Unoccupied Unoccupied
300,000.00 300,000
Occupied Occupied
200,000.00 200,000 100,000.00 100,000 -
BC 39%
Retail 43%
Industrial Industrial
Retail Retail
Office Self-Storage Self Storage Office
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 consistently provided distributions of 7 to 8 percent per annum based on Net Asset Value (NAV), paid monthly or through a dividend reinvestment plan (DRIP) to investors. SPIRE’s mix of real estate holdings include retail, office, industrial, self-storage and multi-family residential (through an investment in SPIRE US LP). Distributions 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. The directors of Nicola Crosby believe in SPIRE and have invested a signficant amount of their own capital.
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
LOUGHEED SUPER CENTRE, COQUITLAM, BC
J U LY 31, 2013
Year to Date Highlights
Investment Criteria
• Despite the challenges of the current low interest and cap rate environment, SPIRE is success-
• Clear focus on hard asset, cash flowing real
fully procuring well located, quality assets that meet our investment criteria. • In March we closed on the purchase of Lougheed Super Centre in Coquitlam, BC for $29.9
estate where the primary revenue source comes from tenant rents.
million representing a 6.4% cap rate. Well located with over 650 feet of frontage on Lougheed
• Emphasis on procuring assets in Western
Highway, Lougheed Super Centre comprises 81,115 square feet and is 100% leased to an
Canada’s major markets and close proximity
attractive tenant roster which includes Cactus Club Café, HomeSense, Reitmans, Bowring and
suburban areas, with targeted expansion into
Canadian Western Bank.
Central Canada as opportunities present.
• In May the extensive renovations and tenant improvement build-out at Deerfoot Junction II were completed. Trimac Management Services took occupancy, having moved their head office location from downtown Calgary. Trimac leased the 45,523 square foot premises at Deerfoot Junction II for a term of 10 years.
• 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
• We are under contract for the purchase of Aero Industrial Park, a nine building portfolio
individual investment’s minimum 200 basis
situated a few minutes’ drive from Pearson International Airport and 30 minutes’ drive from
point spread between cap rate and cost of
downtown Toronto. The portfolio comprises 416,000 square feet and is 89% leased primarily
capital.
to assembly and warehouse distribution tenants including Farrex Freight Systems, APEX Tool
• Focus on capital preservation while underwriting
Group and Springwall Sleep Products. The acquisition price of $29.2 million reflects a 6.2%
potential risks to minimize possible loss of
cap rate. We have negotiated an adjustment in favour of the purchaser for 12 months of rent
capital and/or income through property, tenant
and all leasing costs for the vacant space. The acquisition is scheduled to close on August 15.
covenant, cap rate and interest rate fluctuations.
• In early July we closed on the sale of the Steels Calgary building, a 97,000 square foot property
• Investment opportunities are sourced through
that was leased to Steels Building Products through the end of the first quarter of 2013. The
third party vendors ensuring no conflicts of
property was sold to an owner-user for $12.0 million.
interest, and all properties are appraised on
• In early July we leased SPIRE’s 105,445 square foot industrial property in Saskatoon which became vacant in mid-2012 after the tenant went into receivership. The new tenant, System
an annual basis by independent appraisers, ensuring accurate market-based valuations.
Build Development, signed a five-year lease for the entire building and will use the premises to manufacture modular homes. • With recent flooding this spring in the Calgary Region, none of our assets were affected or sustained damage.
$100,000 Invested Since Inception
Disclaimer
220,000
$220,000
$205,266 $206,762
200,000
$200,000 180,000
$180,000
160,000
$160,000
140,000
$140,000
• 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
120,000
$120,000
100,000 $100,000 Dec-2005 2005
Dec-2006
2006
Dec-2007
2007
Dec-2008
2008
Dec-2009
2009
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
Dec-2010
2010
Dec-2011
2011
Dec-2012
2012
W W W. N I C O L A C R O S B Y. C O M
