Stride Property Group · NZX:SPG
Stride Property — DNZ Property Fund — H1 FY2014 Earnings Presentation
26 slides from Stride Property's earnings presentation, Nov 13, 2013
Slide 1: Interim Result
INTERIM RESULT 13 NOVEMBER 2013
Slide 2: Agenda & Contents
2 Agenda & Contents Page Introduction Tim Storey Chairman Section 1.0 - Highlights 3 Patrick O’Reilly Acting Chief Executive Section 2.0 - Financial Performance 6 Jennifer Whooley Chief Financial Officer Section 3.0 - Capital Management 10 Section 4.0 - Portfolio Overview 13 Patrick O’Reilly Acting
Slide 3: 1.0 Highlights
3 1.0 HIGHLIGHTS The Silverdale Centre, Silverdale, Auckland DNZ PROPERTY FUND LIMITED INTERIM RESULT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013 13 NOVEMBER 2013
Slide 4: Interim Highlights
4 Interim Highlights (Prior period 30 September 2012 figures in brackets) Net rental income of $28.2m ($26.9m) up 5% OPERATING PROFIT Operating profit before other income/(expenses) and income tax of $17.6m ($15.4m) up 14% BEFORE INCOME TAX Net profit after income tax of $18.4m ($12.1m) up 52% UP 14
Slide 5: Interim Highlights
5 Interim Highlights (31 March 2013 figures in brackets) Occupancy level maintained at 99.4% (99.6%) PORTFOLIO Weighted average lease term (WALT) extended to 5.6 years (5.2 years) OCCUPANCY 102 lease transactions completed over 187,837m2 No major FY14 lease expiries remain – 2.02% of the portfolio c
Slide 6: 2.0 Financial Performance
6 2.0 FINANCIAL PERFORMANCE 7-9 Fanshawe Street, Auckland DNZ PROPERTY FUND LIMITED INTERIM RESULT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013 13 NOVEMBER 2013
Slide 7: Financial Performance – Consolidated Group
7 Financial Performance – Consolidated Group Actual Actual 30 Sep 2013 30 Sep 2012 Variance ($ millions) ($ millions) ($ millions) Net rental income 28.2 26.9 1.3 Management fee income 0.8 0.6 0.2 Corporate expenses (4.1) (3.9) (0.2) Operating profit before net finance expenses, other income /(expen
Slide 8: Distributable Profit – Consolidated Group
8 Distributable Profit – Consolidated Group Actual Actual 30 Sep 2013 30 Sep 2012 Variance ($ millions) ($ millions) ($ millions) Net profit before income tax 22.7 15.2 7.5 NZ IFRS and other adjustments: - Net change in fair value of investment properties (5.3) 0.1 (5.4) - Loss on disposal of invest
Slide 9: Financial Summary
9 Financial Summary As at As at 30 Sep 2013 31 Mar 2013 ($ millions) ($ millions) Property values1 770.6 667.0 Bank debt drawn 269.9 246.4 Bank loan to value ratio 35.0% 36.9% Equity 489.3 408.4 Shares on issue 293.8 250.4 NTA per share2 $1.66 $1.62 Adjusted NTA per share3 (refer Appendix 1) $1.65 $
Slide 10: 3.0 Capital Management
10 10 3.0 CAPITAL MANAGEMENT DHL, Airpark Drive, Mangere, Auckland DNZ PROPERTY FUND LIMITED INTERIM RESULT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013 13 NOVEMBER 2013
Slide 11: Capital Management
11 Capital Management As at As at As at Covenant Covenant 30 Sep 2013 Bank Facility 30 Sep 2013 31 Mar 2013 Loan to Value Ratio (Bank Debt / Property Values) <_ 50% 35.0% Bank facility limit $300m $300m (ANZ, BNZ, CBA) Interest Cover Ratio (EBIT / Interest and Financing Costs) _ 1.75 x > 3.22 x Bank
Slide 12: Capital Management
12 Capital Management Bank Facility (Post Balance Date) Effective from 31 October 2013, DNZ’s total bank facility amount and term were increased Total bank facility increased from $300m to $400m, split into two equal tranches of $200m fixed for terms of three and five years, expiring in October 2016
Slide 13: 4.0 Portfolio Overview
13 4.0 PORTFOLIO OVERVIEW AA Insurance, O’Rorke Road, Penrose, Auckland DNZ PROPERTY FUND LIMITED INTERIM RESULT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013 13 NOVEMBER 2013
Slide 14: Portfolio Summary
14 Portfolio Summary As at 30 Sep 2013 As at 31 Mar 2013 Properties 47 48 Tenants 293 258 Net Lettable Area (m2) 365,912 354,502 WALT (years) 5.6 5.2 Occupancy Rate (by area) 99.4% 99.6% Asset Valuation $770.6m $667.0m Note: Contract Rental is the amount of rent payable by each tenant, plus other am
Slide 15: Major Lease Transactions Completed
15 Major Lease Transactions Completed 102 lease transactions during the six month period Major renewals and new lettings Annual Contract Tenant Property Commencement Area (m2) Term (years) Rental ($) Westpac 1 Grey Street, Wellington Feb 2014 4,266 4 1,331,648 Ministry of Health 650 Great South Road
Slide 16: Remaining Lease Expiries FY14 & FY15
16 Remaining Lease Expiries FY14 & FY15 FY14 % of Property Tenant NLA (m2) Contract Rental Johnsonville Retail, Wellington Various 1,959 1.24 650 Great South Road, Auckland Ministry of Health 865 0.49 Balance Various 1,287 0.29 FY14 TOTAL 2.02 2.02% of contract rental expiries remain in FY14 (6.23%
Slide 17: Portfolio Occupancy – 99.4%
17 Portfolio Occupancy – 99.4% Occupancy (%) Vacancy (m2) Total Area (m2) Occupancy (%) Property 30 Sep 2013 30 Sep 2013 30 Sep 2013 31 Mar 2013 80 Greys Avenue, Auckland 94.9 279 5,450 94.9 Other 100.0 - 60,839 100.0 OFFICE TOTAL 99.6 279 66,289 99.6 8 Burnham Street, Wellington (sold 12 April 2013
Slide 18: Acquisitions: Silverdale Centre
18 Acquisitions Silverdale Centre Acquired on 31 May 2013 for $78m Opened in October 2012 Located in one of New Zealand’s fastest growing residential catchments 36 bulk and specialty retailers including Warehouse Stationery, Noel Leeming, Number One Shoes, Supercheap Auto, Postie, Lighting Plus, Bed
Slide 19: Acquisitions: Westgate Zone land
19 Acquisitions Westgate Zone 5 land Artist Impression Artist Impression Artist Impression DNZ PROPERTY FUND LIMITED INTERIM RESULT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013 13 NOVEMBER 2013
Slide 20: Acquisitions: Westgate Zone 5 Land
20 Acquisitions Westgate Zone 5 land Strategic major growth node - New commercial and retail centre - Residential growth node Significant roading, transportation and community infrastructure investment by Auckland Council Westgate Zone 5 Land Acquired the development land (6.23 ha) comprising Zone 5
Slide 21: 5.0 Conclusion
21 5.0 CONCLUSION Westgate Zone 5, Artist Impression DNZ PROPERTY FUND LIMITED INTERIM RESULT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013 13 NOVEMBER 2013
Slide 22: Conclusion: Strategy and Outlook
22 Conclusion Strategy Continue to increase the weighting of ownership in the Auckland region Progress development projects in Penrose, Albany and Westgate On-going pre-development planning for Johnsonville Shopping Centre Review and submission undertaken on Auckland assets for Unitary Plan Pro-acti
Slide 23: 6.0 Appendices
23 6.0 APPENDICES ASB, Corinthian Drive, Albany, Auckland DNZ PROPERTY FUND LIMITED INTERIM RESULT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013 13 NOVEMBER 2013
Slide 24: Appendix 1
24 Appendix 1 DNZ PROPERTY FUND LIMITED INTERIM RESULT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013 13 NOVEMBER 2013
Slide 25: DNZ Property Fund Overview
25 DNZ Property Fund Overview DNZ Property Fund Limited (DNZ) owns, manages and develops commercial property assets in the office, industrial and retail sectors located in the main urban areas throughout New Zealand. Since establishment in 1996, DNZ has grown to become the owner of a significant New
Slide 26: Thank You
THANK YOU DNZ Property Fund Limited Level 2, 80 Greys Avenue, Auckland 1010 PO Box 6320, Wellesley Street, Auckland 1141 Tel: +64 9 912 2690 Fax: +64 9 912 2693 www.dnzproperty.com Important Notice: Certain statements in this presentation constitute forward-looking statements. Such forward-looking s