2017 Activity Report

70 Pages·2017·4.04 MB·English

Real estate is about more
than buildings — it’s about
how we live.
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Table of contents
2 Interview with Daniel Fournier, Chairman and CEO
4 2017 at a glance
6 Financial highlights
8 This is how we do business
12 The rise of e-commerce
18 Urbanization
24 Reinventing work spaces
34 It’s all about the experience
40 A more responsible world
52 Inspiring performance
55 About this report
56 CSR performance summary
58 Materiality assessment
60 Global Reporting Initiative (GRI) content index
66 Leadership team
66 Board of Directors
Ivanhoé Cambridge has combined its Activity and Corporate Social Responsibility
Reports into one comprehensive report covering the highlights of 2017.
To learn more, see the About this report section.
For complementary information and additional images and videos, please refer to the
online version of this report available at: 2017ar.ivanhoecambridge.com
Cover page: In November 2017, Ivanhoé Cambridge inaugurated Maison Manuvie, a brand new
standard for Montreal office buildings, that offers a working environment with optimal layout
flexibility and efficiency, including the opportunity to create open, collaborative work spaces and a
lounge where occupants can relax and socialize.
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ABOUT
IVANHOÉ CAMBRIDGE
Ivanhoé Cambridge develops and invests in high-quality real estate
properties, projects and companies that are shaping the urban fabric in
dynamic cities around the world. It does so responsibly, with a long-term
view to generate optimal, risk-adjusted returns. Ivanhoé Cambridge is
committed to creating living spaces that foster the well-being of people
and communities, while reducing its environmental footprint.
Vertically integrated in Canada, Ivanhoé Cambridge invests internationally
alongside strategic partners and major real estate funds that are leaders in
their markets. Through subsidiaries and partnerships, the Company holds
interests in more than 1,000 buildings, primarily in the residential, office,
retail, industrial and logistics real estate sectors. Ivanhoé Cambridge held
more than $60 billion in assets as at December 31, 2017, and is a real
estate subsidiary of the Caisse de dépôt et placement du Québec, one of
Canada’s leading institutional fund managers.
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INTERVIEW WITH
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DANIEL FOURNIER,
CHAIRMAN AND
CHIEF EXECUTIVE
OFFICER
HOW WOULD YOU SUMMARIZE THE WHY IS TALENT IMPORTANT?
COMPANY’S PERFORMANCE IN 2017? Talent is everything. Our teams attract and
We fared well in 2017. Thanks to an effective develop the top talent in the industry. Every
diversification strategy, we generated net day, I witness the work accomplished by the
investment income of $2.7 billion and returns of incredibly dedicated people who embody our
8.1% for our shareholders. Our teams completed Company’s entrepreneurial spirit. And I am
$12.4 billion in transactions, including more than grateful to them for everything they do. They
$8 billion in acquisitions, development projects are the reason why we have the agility required
and fixed assets. We increased our presence to act quickly, capitalize on opportunities and
in the logistics sector, broke ground on major execute complex transactions. We are people-
new projects in our development pipeline and focused and we believe in building strong
continued to invest strategically to create value relationships with partners, tenants and other
in our existing properties. stakeholders. At its core, our approach is defined
by collaboration, agility and the drive to excel.
WHAT ARE THE CHIEF QUALITIES THAT
DEFINE IVANHOÉ CAMBRIDGE? HOW DO YOU GO ABOUT CHOOSING THE
As an investor, we have the financial might to RIGHT PARTNERS AND WHY ARE THEY
execute complex transactions while remaining IMPORTANT TO YOUR APPROACH?
very serious about our responsibility to make In any investment, the choice of a partner is just
sound decisions and to seize opportunities to as important as the geography or the type of
create value for our portfolio. As a builder, we product. You need to ask yourself: Is there trust?
have the incredible privilege to leave a lasting Do you share similar values? Are your objectives
legacy by deploying our development expertise aligned? We are fortunate to work alongside
to build city-defining projects that contribute to expert strategic partners all around the world
transforming the urban landscape of world-class and to benefit from their knowledge of local
cities. As an operator, we attract sophisticated markets. When one of our partners sees a deal
tenants and users and strive to always be tuned on the horizon, we want to be on the other end
in to their ever-evolving needs, in order to of that first call they make.
create spaces and offer services that meet their
expectations.
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At its core, our approach is defined by collaboration,
agility and the drive to excel.
WHICH TRENDS ARE YOU KEEPING AN EYE We are also keeping a close eye on other key
ON AND HOW ARE THEY INFLUENCING trends, among them the increasing importance
REAL ESTATE? of providing experiences, the reinvention of
There is no doubt that the explosion of work spaces and, of course, everything and
e-commerce is changing the way people anything to do with sustainability. That is why
consume goods and services. This trend is driving we have decided to specifically address each
growth in the logistics sector and transforming of these themes in this report. To succeed in
the world of retail, creating opportunities this rapidly changing landscape, we need to be
along the way. At the same time, the global forward-looking and modernize our assets to
phenomenon of urbanization is influencing the drive occupancy, well-being and value creation.
kind of spaces we want to create and amenities
we need to offer as more and more people want
to live, work and play in the heart of the city.
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2017
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AT A GLANCE
Real estate assets in
excess of $60 B
$12.4 B in transactions
$5 B
value of ongoing development/
redevelopment projects
+ 1,000 buildings
270 M visitors to
Ivanhoé Cambridge
shopping centres
in Canada
IVANHOÉ CAMBRIDGE Canada Latin America
OFFICES AROUND Montreal (head office) Mexico City
THE WORLD Calgary São Paulo
Toronto
Vancouver
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+ 1,300 employees 170 electric vehicle
charging stations
+ $2.5 M in in buildings managed by
contributions Ivanhoé Cambridge
to the community
(value of donations from + 1,800 bicycle
Ivanhoé Cambridge and parking spaces in
its managed buildings)
buildings managed by
Ivanhoé Cambridge
+ 4,700 hours of
volunteer work in the
community by employees 11.7% reduction in
greenhouse gas emissions
during the year
83% of
Ivanhoé Cambridge-
managed buildings are
BOMA BEST-certified
Latin America Europe Asia-Pacific
Mexico City London Hong Kong
São Paulo Luxembourg Mumbai
Paris Shanghai
Singapore
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FINANCIAL HIGHLIGHTS
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For the year ended December 31 (in billions of dollars)
2017 2016*
Real estate income 3.2 3.1
Earnings before interest, taxes, depreciation and amortization (EBITDA) 1.4 1.4
Current return 0.7 0.7
Acquisitions and contributions 6.4 4.3
Development projects / Fixed assets 1.6 1.5
Dispositions and distributions 4.4 5.8
FAIR VALUE
Real estate assets 48.7 45.6
Real estate investments 11.6 10.1
Third-party debt 22.6 21.4
Shareholders’ equity 36.7 34.0
RATIO
Debt ratio 46%* 45%
* 44% after the impact of the injection of $1 billion in capital in January 2018
RETURNS
As at December 31
CAGR*
2013 2014 2015 2016 2017 (2013-2017)
15.2% 10.0% 13.1% 10.3% 8.1% 11.3%
* Compound annual growth rate
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BREAKDOWN BY GEOGRAPHY
As at December 31, 2017 (as per fair value)
9% G rowth markets
32% Canada
14% Europe
45% United States
BREAKDOWN BY SECTOR
As at December 31, 2017 (as per fair value)
19% Residential
28% Office
8% Investment funds
11% Shares and financing
27% Shopping centres
3% Industrial/logistics
4% Hotels and other
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River Point, Chicago,
United States
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