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Automotive Properties REIT offers a unique opportunity to invest in a portfolio of best-in-class properties underlying Canadian automotive dealerships, representing leading automotive brands ranging from the mass-market to the ultra-luxury segment. The primary objective of the REIT is to create long-term value for Unitholders by generating sustainable tax-efficient cash flow and capital appreciation.  

Investment Highlights

Opportunity to Gain Exposure to a Unique Real Estate Asset Class

The REIT’s automotive dealership properties are located in urban areas that are specifically zoned for automotive retail use. A defensive asset class, these properties represent a strategic and fundamental part of the automotive manufacturers’ brand and distribution network.

Automotive Dealership Properties Benefit from Strong Underlying Fundamentals

In 2016, the Canadian automotive retail industry generated sales of approximately $134 billion, representing approximately 25% of Canada’s overall retail sales of products and merchandise. From 2011 to 2016, automotive retail sales increased at a compound annual growth rate of 6.1%, while generating consistent profit margins.

Portfolio of High-Quality and Strategically Located Automotive Dealership Properties

The REIT’s portfolio consists of 33 high-quality properties representing over one million square feet of gross leasable area. The properties are generally located along major transportation arteries with high visibility and convenient consumer access, and meet or exceed the latest automotive manufacturers’ standards.

Significant Growth Opportunities

The REIT is well-positioned to capitalize on growth opportunities, including (i) accretive acquisitions from third parties; (ii) accretive acquisitions from the Dilawri Group; and (iii) contractual annual rent escalations. The fragmented nature of the Canadian automotive dealership industry is expected to provide the REIT with a significant pipeline of acquisition opportunities in the future.

Strong Lead Tenant with Significant Alignment of Interest

With combined revenues of approximately $2.4 billion in 2016, the REIT’s lead tenant, the Dilawri Group, is the largest automotive dealership group in Canada, representing virtually every major automotive brand. The interests of the REIT and Dilawri are strategically aligned through Dilawri’s 38% effective interest in the REIT. As at December 31, 2016, Dilawri provides 93.1% of the REIT’s rental income, including subleases to third parties.

Excellent Leasing Profile

The REIT’s portfolio has a weighted average lease term of over 13 years. Leases are structured as triple-net leases under which the tenant is responsible for all costs relating to repair and maintenance, realty taxes, property insurance, utilities and non-structural capital improvements. 30 of the REIT’s 33 property leases include annual fixed rent escalators, providing for consistent revenue growth.

Attractive Cash Distributions

The REIT is currently paying monthly cash distributions of $0.067 per Unit, representing $0.80 per Unit on an annualized basis.

Experienced Executive Management and Strong Independent Board

The REIT’s President and Chief Executive Officer, Milton Lamb, has over 25 years of experience in the commercial real estate industry and Chief Financial Officer, Andrew Kalra, has over 20 years of experience in finance, including more than 14 years of experience in the automotive industry. The REIT’s Board, the majority of whom are independent, has extensive collective experience in the automotive and real estate industries, capital markets and corporate governance.

Portfolio Diversification by Cash NOI

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Portfolio Diversification by GLA

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Percentage of Cash NOI from Dealership Properties by Automotive Brand Segment

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As at December 31, 2016

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Events & Presentations

Annual General Meeting

10:00 am, Tuesday, June 20, 2017

Toronto Region Board of Trade

First Canadian Place

77 Adelaide St. West, Suite 350, Toronto

2016 Fourth Quarter Conference Call – March 21, 2017

Investor Presentation – April 2017