Automotive Properties Real Estate Investment Trust (APR-UN) Investor presentation summary

Investment highlights

• Portfolio consists of 92 prime urban properties valued at $1.38 billion, with 100% occupancy and 3.4 million sq. ft. of GLA, focused on essential automotive retail and services in major Canadian and select U.S. markets.

• Tenants are diversified, high-quality automotive groups and OEMs, with long-term, triple-net/net leases and fixed or CPI-linked rent escalators, ensuring stable and growing cash flows.

• AFFO per unit growth is driven by ~$214 million deployed on 14 acquisitions in 2025-2026, and a 2.2% distribution increase in August 2025, resulting in a 7.1% yield and an 81.5% AFFO payout ratio.

• Debt profile is conservative, with 87% of debt fixed, a 45.9% debt-to-GBV ratio, and $102.3 million in undrawn credit facilities as of March 2026.

• Trading at a notable discount to NAV and below historical AFFO/unit multiples, with potential for multiple recovery if auto tariffs are reduced.

Financial and operational performance

• Revenue from investment properties grew 8.5% year-over-year to $101.8 million in 2025, with AFFO per unit up 7.1% to $0.998 and an improved payout ratio.

• Q4 2025 saw Cash NOI rise 18.6% and AFFO per unit increase to $0.251, with a payout ratio of 82.1%.

• Same property Cash NOI increased 2.1% in 2025, reflecting embedded growth from contractual rent escalators and CPI adjustments.

• Since IPO in 2015, the portfolio has expanded from 26 to 92 properties, with investment properties growing 287% and AFFO per unit up 12.1%.

• Total return since IPO to March 2026 is 155.6%, outperforming retail peers over the five-year period.

Growth strategy and market opportunity

• Industry remains highly fragmented, with top 10 dealership groups holding only 14.1% of the Canadian and 8.7% of the U.S. market, supporting further consolidation.

• Recent and pending acquisitions include a Rivian-tenanted property in Vista, California, marking continued U.S. expansion.

• Capital recycling strategy demonstrated by the sale of Kennedy Lands at a 79% premium to IFRS value, redeploying proceeds to reduce debt and fund new acquisitions.

• Strong demand for automotive-zoned urban properties, with new entrants and OEMs increasing competition for limited supply.

• Focus remains on metros with strong GDP and population growth, leveraging scalable net lease structures.