2016 Conference Program

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Tuesday, February 23, 2016

7:00 AM
REGISTRATION & BREAKFAST

7:30 AM
CANADIAN REAL ESTATE MARKET INSIGHTS
CONFRONTING UNCERTAINTY: THE OUTLOOK FOR CANADIAN AND U.S. ECONOMIES

Oil and natural resources continue to slump, dragging the loonie down with them. Has manufacturing seen any gain from the sinking dollar? Has a U.S. rate hike spurred economic growth and benefited the Canadian economy? This presentation will examine the economic outlook for Canada and the United States, including GDP and employment growth; interest, currency and inflation rates; energy and commodity prices over the rest of the year, and the implications for household and government balance sheets.

 

Avery Shenfeld, Managing Director and Chief Economist, CIBC World Markets Inc.

 

TRUDEAU, TRUMP AND TERRORISM: THE SHIFTING CANADIAN POLITICAL LANDSCAPE AND WHAT LIES AHEAD SOUTH OF THE BORDER

The Canadian election was a clear call for change. With a new government in place and a fresh crop of issues before it, what lies ahead for Canada? As the U.S. presidential race heats up, the discourse is delivering more confusion than clarity. How will Canadians respond to these new geopolitical realities within and beyond our borders? The pickings are ripe for one of Canada’s foremost political commentators who will discuss the current state of affairs in Canada and beyond.

 

Andrew Coyne National Post Columnist & CBC “At Issue” Panelist

 

CANADA IN THE CROSSCURRENTS: WHAT NEW & FAMILIAR FACTORS ARE SHAPING CANADIAN COMMERCIAL REAL ESTATE DECISIONS?

Can the commercial real estate sector remain resilient in the wake of weakened economic fundamentals? Is the lower Canadian dollar a blessing or a curse for property owners? Will warehouse and manufacturing space attract more interest? Will global investors be drawn to Canada? Where are Canadian developers focusing their efforts now? This presentation will examine the various factors behind strategic decisions in the Canadian commercial real estate marketplace.

 

Paul Morassutti, Executive Vice President & Executive Managing Director, CBRE Limited


9:00 AM
BREAKFAST PRESENTATIONS END

9:30 AM
CAPITAL ALLOCATION IN 2016: WHERE IS IT LIKELY TO BE HEADING?

Senior executives from banking, insurance, capital markets and private equity will discuss their strategies for optimizing returns in 2016 and beyond in today’s unpredictable and often volatile environment. What is different today than a year ago? Where do they expect to be allocating resources – both capital and human – and why? What risks vs. opportunities are emerging at this time? Will strong capital flows into the real estate and debt markets continue? Where will capital move if the low interest rate environment comes to an end?

Adam Paul

Peter Senst

Kevin Adolphe

John McCarthy

Sandy McIntrye

Michael McLaughlin

Moderators:
Adam Paul, President & CEO, First Capital Realty Inc.
Peter Senst, President, Canadian Capital Markets, CBRE Limited

Panel:
Kevin Adolphe, President & CEO, Manulife Asset Management Private Markets and President & CEO, Manulife Real Estate
John McCarthy, Managing Director, Global Capital Raising, Starwood Capital Group
Sandy McIntyre, Vice Chairman & Chief Investment Officer, Sentry Investments Inc.
Michael McLaughlin, U.S. Country Head & Head of Capital Markets, Macquarie


10:25 AM
MORNING REFRESHMENTS

10:50 AM
CONCURRENT SESSIONS (SELECT A1, A2 or A3)
SESSION A1:
MAJOR LENDERS’ ROUNDTABLE:  WHAT CAN BE EXPECTED THIS YEAR FROM THE MARKET FOR MEDIUM AND LARGER LOANS?

A cross-section of major Canadian commercial lenders will provide an update on the underwriting practices and deployment of debt capital in 2016. While there still appears to be sufficient capital available, what issues do major lenders have at this time in deploying their capital? The session will open with a brief overview of a national annual survey of the Canadian commercial mortgage market activity. Discussion will then focus on the following questions among others:

  • What criteria will major providers of debt be using to place issue loans? To what extent will you have increased expectations, greater stress testing and standards from 2015?
  • How is geography affecting your underwriting, e.g. how concerned are you about Alberta?
  • How will the strategies of banks, insurance companies, pension funds and other institutions vary from those of private sources of debt capital?
  • How are lenders evaluating deals in today’s market? How is risk being priced in 2016? What is happening with loan spreads, amortization periods, loan to value ratios, and recourse financing?
  • What property classes are you perhaps avoiding, reducing exposure to, or increasing pricing for?

Louis Forbes

Mark Achtemichuk

Michael Andrews

Paul Chin

John Miron

Jeremy Wedgbury

Moderator:
Louis Forbes
, Chief Financial Officer, CT REIT

Panel:
Mark Achtemichuk, Vice President & Managing Director, CMLS Financial

Michael Andrews, National Managing Director & Head of Canadian Mortgage Team, Sun Life
Paul Chin, Vice President, Real Estate Lending, Loan Syndications and Capital Markets, Otéra Capital Inc.
John Miron, Managing Director & Head of Canadian Real Estate Corporate Banking, RBC Capital Markets
Jeremy Wedgbury, Managing Director, Commercial Mortgages, First National Financial LP


SESSION A2:
THE GREAT DEBATE: IS THE CANADIAN HOUSING MARKET ON THE VERGE OF A MAJOR CORRECTION WHICH COULD BE FOLLOWED BY A RECESSION?

A consistent topic of many conversations is housing prices across Canada but particularly in Toronto and Vancouver. The latter was dubbed earlier in 2015 as one of the most expensive markets in the world in a housing survey by The Economist. The publication suggested that Vancouver property was overvalued by 89%. The Bank of Canada raised concerns about overvaluation in its June Financial System Review indicating that prices were outpacing income growth and that the bank’s models saw national housing prices overvalued anywhere from 10% to 30%. This session will focus on the principal question of whether the Canadian housing market (in Toronto and Vancouver in particular) is on the verge of a major correction. As low commodity prices and stagnating exports drag down the country’s economic outlook, is a recession in fact on the horizon as well?

Amy Erixon

Seth Daniels

Bill Jandrisits

Ben Rabidoux

Moray Tawse

Moderator:
Amy Erixon, Principal & Managing Director – Investments, Avison Young

Panel:
Seth Daniels, 
Managing Partner, JKD Capital LLC

Bill Jandrisits, President & CEO, MCAN Mortgage Corporation
Ben Rabidoux, President, North Cove Advisors
Moray Tawse, Co-Founder & Executive Vice President, Mortgage Investments, First National Financial LP


SESSION A3:
A FINANCING INNOVATION DRAWING INCREASING ATTENTION: CROWDFUNDING AS A NEW REALITY IN REAL ESTATE INVESTING

The new buzz and latest entry into real estate financing is crowdfunding. While globally crowdfunding has been picking up pace over last three years, in Canada it started to gain greater attention in 2015. Every indication is that it will continue to be a hot investment trend in the coming years. The goal of this session is to explain crowdfunding, why it has emerged as a new platform for raising debt and equity financing for commercial real estate, how it works, and what type of situations is it ideally suited for. Some insights will be provided on the leading-edge technology required to scale both capital investment and syndication process, the regulatory environment that crowdfunding must operate within, and the underwriting criteria used in these types of investments. Learn why all types of investors can participate in this platform, the wide range of products that crowdfunding can provide, what security is provided to each investor and what type of returns are being created. Case studies will be used where possible for reference.

Amar Nijjar

Zulf Karim

Don McDonald

D’Arcy McGee

Darrin Renton

Moderator:
Amar Nijjar
, Founder, R2Crowd, a Strategic Partner with JLL & Senior Vice President, Practice Lead JLL Debt Capital Markets

Panel:
Zulf Karim, Regional Head of Business Development, TSX Private Markets
Don McDonald, Founder & President, Waverley Corporate Financial Services
D’Arcy McGee, President, Evton Capital Partners
Darrin Renton, Partner, Stikeman Elliott LLP


11:50 AM
CONCURRENT SESSIONS (SELECT B1, B2 or B3)
SESSION B1:
RISK AND BALANCE SHEET MANAGEMENT FROM A BORROWER’S PERSPECTIVE

Borrowers, lenders, regulators, insurers, analysts, and investors are increasingly focused on risk in a potentially declining return environment. This risk could include covenant risk, repayment risk, political risk, regulatory risk, environmental risk, or development risk. This session will look at risk from the perspective of three different types of borrowers: REITs, private equity and institutional owners. How is risk converted into value? Into loan underwriting terms? Into recourse? Into cost? Into price? Into liquidity? Into the investment decision? What is the risk profile of your organization? How can borrowers better identify, manage and mitigate risk? What can you do to reduce risk, and improve their finance ability and (risk adjusted) returns?

Jennifer Podmore Russell

Cynthia Devine

Colin Johnston

Anna Kennedy

Allison Wolfe

Moderator:
Jennifer Podmore Russell
, Director, Deloitte Real Estate

Panel:
Cynthia Devine, Executive Vice President & CFO, RioCan REIT
Colin Johnston, President, Research, Valuation and Advisory, Altus Group
Anna Kennedy, Partner, COO & CFO, KingSett Capital
Allison Wolfe, Senior Vice President, Finance, Strategy & Risk, Oxford Properties Group Inc.


SESSION B2:
ALTERNATIVE SOURCES OF CAPITAL:  SMALLER BANKS, PRIVATE EQUITY, CREDIT UNIONS AND FOREIGN BANKStext

Over and above the major conventional financial institutions, large pension funds and lifecos, additional players in the Canadian lending environment now include foreign banks, private equity funds, smaller banks, credit unions and other non-bank lenders. This session will examine the range of their activities in the Canadian commercial mortgage market. What is the scope of their primary market? Are they predominately focused on transactions and properties that have financing needs in the range of $20 million or less? Why is the Canadian commercial lending market gaining interest from U.S. banks again? What are the loan origination and underwriting strategies of these lenders, e.g. preferably to whom, in which markets, and for what property classes. How is risk being priced for smaller sized loans or mezzanine financing? What are your spreads, amortization periods, LTV ratios, and recourse? What is the market for B and C class properties that could be out of favour with major lenders? Is there any interest in underperforming assets? Is the CMBS market still performing in Canada?

Jeff Cox

Scott Coates

Vince Faustini

Jim Gardiner

Paul Scholz

Jim Ward

Moderator:
Jeff Cox, Vice President, Murray & Company Limited

Panel:
Scott Coates
, Managing Director, Mortgage Investments, KingSett Capital

Vince Faustini, Vice President, Commercial Mortgage Origination, Equitable Bank
Jim Gardiner, Director, Real Estate Development, Meridian Credit Union
Paul Scholz, Managing Director, Credit & Risk, Institutional Mortgage Capital

Jim Ward, Senior Vice President, Wells Fargo Bank N.A. – Canada


SESSION B3:
FINANCING CONDOMINIUM CONSTRUCTION & DEVELOPMENT IN TODAY’S MARKET: IS IT BECOMING MORE DIFFICULT?

One of the ongoing debates for the past six years is the extent to which the sales and prices in the Greater Toronto housing market have peaked and how much of a correction in property values can we expect. The media has increasingly focused on this topic that even dominates water cooler conversations. To what degree have condominium developers overextended themselves with too many projects? Are fewer investors buying? Are lenders at high levels of caution and risk assessment as they respond to the concerns of the federal government by significantly reducing construction lending activities? This session will try to offer some insights on these and other questions to clarify what may lie ahead for the financing of condominium and mixed-use developments for 2016 and beyond. What are lenders’ pre-sale and covenant requirements and where will they be heading in the next twelve months? How are lenders and investors pricing risk for this type of financing? What underwriting practices are they using to evaluate potential projects? What are the challenges in financing mixed-use developments that include a residential component vs. single asset buildings?

Frank Margani

Leonard Damiani

Wissam Francis

Elliot Gosselin

David McCrossan

Moderator:
Frank Margani, Executive Vice President, Strategy & Development, Fortress Real Developments Inc.

Panel:
Leonard Damiani, Director, Real Estate Lending, Otéra Capital Inc.
Wissam Francis, Chief Financial Officer, Tricon Capital Group Inc.
Elliot Gosselin, Vice President, Real Estate Banking, Scotiabank
David McCrossan, Director, Development Finance Group, MCAP


12:45 PM
NETWORKING LUNCHEON
LUNCHEON REFRESHMENTS

2:00 PM
CONCURRENT SESSIONS (SELECT C1, C2 or C3)
SESSION C1:
RAISING DEBT AND EQUITY IN THE CAPITAL MARKETS: WHAT CAN PUBLIC COMPANIES EXPECT IN 2016?

Access to a supply of well-priced capital is critical to the growth of publicly traded companies. This session will examine the current market conditions and environment for REITs and REOCs to access debt and equity markets to meet their ongoing financial needs. What are the major sources that are being used to raise capital at this time? Discussion will also focus on units/shares, preferreds, converts, mortgages, mortgage bonds, unsecured debentures and revolvers. Secured vs. unsecured markets: is there a different mix emerging? Why are we seeing more unsecured and how long will this trend continue? What should be a REIT’s interest rate strategy: long vs. short? Should capital be recycled rather than raising equity? Do the capital markets favour larger real estate entities or do they simply want the existing ones to get bigger? What about new acquisitions and development? How are they likely to be financed in 2016? What is the right capital structure and appropriate level of debt for a Canadian real estate corporation?

Carmin Di Fiore

Mario Barrafato

David Dulberg

Ashi Mathur

Peter Sweeney

Moderator:
Carmin Di Fiore
, Executive Vice President, Debt & Structured Finance, CBRE Limited

Panel:
Mario Barrafato, Executive Vice President & CFO, CREIT
David Dulberg, Managing Director, RBC Capital Markets Real Estate Group
Ashi Mathur, Managing Director & Head, Canadian Real Estate Group, Investment and Corporate Banking, BMO Capital Markets

Peter Sweeney, Chief Financial Officer, SmartREIT


SESSION C2:
HOW MORTGAGE INVESTMENT CORPORATIONS ARE MEETING THE DEMAND FROM SMALLER LOANS, TIER TWO ASSETS TO LARGER PORTFOLIOS AND PROPERTIES

Given the inflow of billions of dollars looking for opportunities to access the yield and cash flow produced by property assets, commercial mortgages and real estate funds have been very popular products for institutional and retail investors. As a result, large pools of funds have been raised by private sources to provide a range of loans. Secondary sources of capital are playing an important role in today’s real estate market. This session will examine the trends, availability, and cost of this type of debt. What is the strategic role that mortgage investment corporations play for investors seeking exposure to real estate as well as borrowers seeking debt capital? What is the strongest market for these types of alternative products? How can you differentiate one fund from another? What are the underlying strategies that the sources of capital are using with respect to risk/reward/return for the deployment of these funds? What will be their priorities for 2016 by product type and market across the country? How have some fund managers accessed the capital markets to participate in their activities?

Chris Huband

Scott Cameron

Michael Carragher

Andrew Jones

Michael Nisker

Moderator:
Chris Huband, Partner, Blake, Cassels & Graydon LLP

Panel:
Scott Cameron, President, Cameron Stephens Mortgage Capital Ltd.

Michael Carragher, Vice President, Mortgage Investments, Firm Capital

Andrew Jones, Managing Director, Debt Investments, Timbercreek Asset Management
Michael Nisker, Managing Director, Trez Capital


SESSION C3:
REAL ESTATE INVESTMENT IN AN UNPREDICTABLE ENVIRONMENT: THE PERSPECTIVES OF PENSION FUNDS, REITS & PRIVATE EQUITY FUNDS

An insightful discussion about investment activity in today’s very competitive market environment. The panel will address a range of questions including: What will likely be the major challenges in order to buy or sell assets in the Canadian market during 2016? What are the differences between the issues faced by a REIT vs. a pension fund vs. a private equity fund in selling or acquiring properties at this time? What can REITs expect from the capital markets in 2016? How are you financing your development and investment programs going forward? Where do you predict Canadian cap rates be by the end of 2016 relative to today’s prices? Who do you anticipate will be the likely sellers? Which property classes will be most favoured? Will shifting bond yields and rising U.S. interest rates affect your strategies and, if so, in what way?

Jeff Thomas

Peter Cuthbert

Jonathan Gitlin

Steven Gross

Tony Vadacchino

Moderator:
Jeff Thomas, Managing Partner, Ashlar Urban Realty Inc.

Panel:
Peter Cuthbert, Partner & Senior Vice President, Fiera Properties Limited & Fund Manager, Fiera Properties CORE Fund
Jonathan Gitlin, Senior Vice President, Investments, RioCan REIT
Steven Gross, Managing Partner, Real Estate Investments, Romspen Investment Corporation
Tony Vadacchino, Vice President, Investments, Oxford Properties Group Inc.


3:05 PM
AFTERNOON REFRESHMENTS

3:10 PM
CLOSING ROUNDTABLE DISCUSSION: THE LAST WORD ON CAPITAL MARKETS, LIQUIDITY, VALUES, AND DEAL FLOW IN 2016

An insightful discussion with a diversified group of senior real estate executives on their perspective for Canadian real estate fundamentals, trends, and strategies for 2016. How will Canada perform relative to the U.S., European and other global markets? What will likely be the key challenges facing real estate executives over the next twelve months looking for sources of well-priced capital? What are their expectations of the capital and credit markets in supporting the growth of their portfolios? What trend do they expect for the cost of debt capital? What impact will this have on cap rates and real estate values? For those of you active outside of Canada, what are you seeing in capital, financial and real estate markets in the U.S., Europe and Asia? How much deal flow can be expected in the Canadian market in 2016? Are assets now priced beyond perfection in Canada or are they still attractive to foreign investors? Have we reached the point where investing outside of the country is more attractive than staying at home?

Adam Paul

Brady Welch

Peter Senst

David Arthur

Rael Diamond

Michael Emory

Frederic Waks

Moderators:
Adam Paul, President & CEO, First Capital Realty Inc.
Peter Senst, President, Canadian Capital Markets, CBRE Limited

Panel:
David Arthur, Managing Partner, Brookfield Property Group
Rael Diamond, President & COO, CREIT
Michael Emory, President & CEO, Allied Properties REIT
Frederic Waks, President & CEO, Trinity Development Group Inc.
Brady Welch, Partner & Co-Founder, Slate Asset Management LP


4:10 PM
NETWORKING RECEPTION