Investore Property Ltd. · NZX:IPL
Investore Property — HY21 Earnings Presentation
23 slides from Investore Property's earnings presentation, Nov 17, 2020
Slide 1: Interim Results Update
Interim Results Update For the six months ended 30 September 2020 17 November 2020
Slide 2: Contents
Contents Countdown, Rototuna Highlights 03 Delivering on our strategy 04 Update on COVID-19 05 Portfolio highlights 06 Financial performance 11 Capital management 15 Looking forward 19 Investore Property Limited | HY21 Interim Results Update 2
Slide 3: Highlights
Highlights Distributable profit1 after 7.60cps Profit after income tax current tax $91.0m $13.7m Cash dividend Financial up $80.1m from up $4.0m on guidance2 for FY21 HY20 highlights HY20 $980.3m $1.93 portfolio value3, 10.2 years NTA per share, representing a net Portfolio valuation gain WALT up $0
Slide 4: Delivering on our strategy
Delivering on our strategy • Weighted average lease term (WALT) 10.2 years Active • 99.7% occupancy by area1 portfolio • 57 lease extensions and renewals completed, including COVID-19 related deals, with a weighted average lease management extension of seven months across all COVID-19 deals • 72% of
Slide 5: Update on COVID-19
Update on COVID-19 v Countdown, Rotorua Investore’s portfolio continues to demonstrate resilience given the high proportion of tenants that are essential businesses • Investore has worked with its tenants to support them through the impact of COVID-19 throughout the year • Investore’s approach in as
Slide 6: Portfolio highlights
Portfolio highlights Pak’nSave, New Plymouth Investore Property Limited | HY21 Interim Results Update 6
Slide 7: Active portfolio management
Active portfolio management Key portfolio activities Portfolio metrics ✓ 28 rent reviews completed over 19,000 sqm resulting in a As at Adjusted3 As at 2.2% increase to previous rentals 30 Sep 20 31 Mar 20 31 Mar 20 ✓ 92% of the rent reviews completed were structured reviews Number of properties 43
Slide 8: Long dated lease expiry profile
Long dated lease expiry profile Lease Expiry Profile1 by Contract Rental2 Long portfolio WALT of 10.2 years and 72% of As at 30 Sep 20 Contract Rental2 expiring in 2030 or beyond WALT 10.2 29.3% FY21 years • 1.7% of Contract Rental expiring with major expiry, The Warehouse, 91 Johnsonville Road, Wel
Slide 9: Optimisation of the portfolio: Countdown Rotorua
Optimisation of the portfolio Countdown, Rotorua Countdown Rotorua 230-240 Fenton Street, Rotorua Tenant Countdown Occupancy 100% NLA 5,172 sqm Land area 16,442 sqm Car parking ratio 5.8 (bays per 100sqm of NLA) WALT 9.9 years Valuation $22.8m Val./NLA (per sqm) $4,408 Market cap rate 5.0% Case Stud
Slide 10: Optimisation of the portfolio: Countdown Papakura
Optimisation of the portfolio Countdown, Papakura Countdown Papakura, 3 Averill Street, Auckland Countdown, Tenants Stampede Tavern Occupancy 100% NLA 5,435 sqm Land area 14,688 sqm Car parking ratio 4.5 (bays per 100sqm of NLA) WALT 13.7 years Valuation $17.5m Val./NLA (per sqm) $3,220 Market cap r
Slide 11: Financial performance
Financial performance Bunnings, Mt Roskill Investore Property Limited | HY21 Interim Results Update 11
Slide 12: Financial performance
Financial performance Change Unaudited Unaudited 30 Sep 20 30 Sep 19 $m $m $m % Net rental income 27.4 24.1 +3.3 +13.7 Corporate expenses (5.0) (4.0) (1.0) (24.5) Profit before net finance expense, other income and income tax 22.4 20.1 +2.3 +11.6 Net finance expense (10.2) (7.2) (3.0) (41.9) Profit
Slide 13: Distributable profit
1 Distributable profit Change Unaudited Unaudited 30 Sep 20 30 Sep 19 $m $m $m % Profit before income tax 95.9 13.8 +82.1 +596.9 Non-recurring, and/or non-cash items, and other adjustments: - Net change in fair value of investment properties (83.7) (0.9) (82.9) (9351.9) - Loss on rental guarantee 0.
Slide 14: Financial summary
Financial summary Unaudited Audited As at As at 30 Sep 20 31 Mar 20 Change Investment property value ($m) 980.3 761.4 +218.9 Drawn debt ($m) (280.0) (238.4) (41.6) Loan to Value Ratio (LVR) 28.3%1 31.3% (3.0%) Equity ($m) 709.3 526.7 +182.6 Shares on issue (millions) 368.1 304.5 +63.6 Net Tangible A
Slide 15: Capital management
Capital management Mitre 10 Mega Botany, Auckland Investore Property Limited | HY21 Interim Results Update 15
Slide 16: Proactive capital management
Proactive capital management As at As at Debt facilities 30 Sep 20 31 Mar 20 Key debt transactions Banking facility limit • $50m new 5-year bank facility secured June 2020 (ANZ, BNZ, CBA, CCB, Westpac), $446m $370m plus $225m bonds • $101m of bank facilities extended to June 2024 Debt facilities dra
Slide 17: Improved debt profile
Improved debt profile Following new $30m facility with ICBC (post-balance date), total debt facilities are $476m with $280m drawn, leaving $196m undrawn1 and available to fund future growth Debt maturity profile Weighted average maturity of debt facilities $100m 4.4 years as at 30 September 2020, in
Slide 18: Hedging and cost of debt
Hedging and cost of debt As at As at Hedging Update 30 Sep 31 Mar Cost of debt 2020 2020 • 100% of drawn debt hedged, including fixed bonds Weighted average cost of • Weighted average cost of debt at 3.95%, expected to fall as debt (incl. current interest interest rate swaps mature - a tailwind to e
Slide 19: Looking forward
Looking forward Bay Central Shopping Centre, Tauranga Investore Property Limited | HY21 Interim Results Update 19
Slide 20: Looking forward
Looking forward Countdown, Rotorua • Focus is on targeted growth to enhance the portfolio and maximise returns to investors over the medium to long term • Growth includes potential acquisitions, as well as development of the existing portfolio, including refurbishment of stores • Investore will cont
Slide 21: Appendix A
Appendix A Profit before other income/(expense) and income tax $3.6m $0.3m ($0.2m) ($0.6m) $12.9m $12.2m ($2.9m) ($0.4m) ($0.3m) ($0.2m) 30 Sep 19 Net rental Net rental Net rental NZ IFRS Higher net finance Higher Higher Higher 30 Sep 20 increase from reduction from increase from adjustments expense
Slide 22: Appendix B
Appendix B Net Contract Rental $8.7m $0.1m $0.3m $0.5m $57.1m $47.5m As at Acquisitions Rent reviews Turnover rental Net Opex As at 31-Mar-20 30-Sep-20 Investment Properties (excl. lease liabilities) $83.7m $0.6m $0.1m $0.8m $980.3m $133.6m $761.4m As at Acquisitions Net change in fair Capital expen
Slide 23: Thank you
Thank you Important Notice: The information in this presentation is an overview and does not contain all information necessary to make an investment decision. It is intended to constitute a summary of certain information relating to the performance of Investore for the six months ended 30 September