Slide 1: Annual Results for the year ended 31 March 2016
Annual Results For the year ended 31 March 2016 Stride Property Limited — Annual Results Presentation for the year ended 31 March 2016 – 26 May 2016
Slide 2: Agenda & Contents
Agenda & Contents Page Welcome Tim Storey – Chairman Highlights 3 Peter Alexander – Chief Executive Financial Performance 6 Jennifer Whooley – Chief Financial Officer Capital Management 10 Portfolio Overview 12 Development Projects 17 Peter Alexander – Chief Executive Acquisitions 19 Strategy Overvi
Slide 3: Highlights
Highlights Stride Property Limited — Annual Results Presentation for the year ended 31 March 2016 – 30 May 2016 3
Slide 4: Highlights: Financial Performance
Highlights (Prior period 31 March 2015 figures in brackets) Financial Performance • Net rental income of $69.3m ($57.2m) • Corporate expenses of $8.4m ($6.1m) • Operating profit before other income and income tax of $44.7m ($39.6m) • Net profit after income tax of $92.4m ($68.8m) • Distributable pro
Slide 5: Highlights: Portfolio, Developments and Divestments
Highlights (Prior period 31 March 2015 figures in brackets) Portfolio • Net 5.2% property portfolio valuation increase¹ • Net Tangible Assets (NTA) backing per share increased to $1.97 ($1.81) • 200 lease transactions over 278,075m2 for a total annual rental of $44.3m Net valuation increase • FY17 l
Slide 6: Financial Performance
Financial Performance Stride Property Limited — Annual Results Presentation for the year ended 31 March 2016 – 30 May 2016 6
Slide 7: Financial Performance
Financial Performance Consolidated Group Change Actual Actual 31 Mar 2016 31 Mar 2015 ($ millions) ($ millions) $ millions % Net rental income 69.3 57.2 12.0 21.0 Management fee income 1.8 1.5 0.3 23.7 Corporate expenses (8.4) (6.1) (2.3) (36.8) Operating profit before net finance expenses, other in
Slide 8: Distributable Profit
Distributable Profit Consolidated Group Change Actual Actual 31 Mar 2016 31 Mar 2015 ($ millions) ($ millions) $ millions % Net profit before income tax 102.2 77.3 24.9 32.3 NZ IFRS and other adjustments: - Net change in fair value of investment properties (59.9) (38.4) (21.5) (55.9) - Net change in
Slide 9: Financial Summary
Financial Summary As at As at 31 Mar 2016 31 Mar 2015 Property value ($ millions) (refer Appendix 1) 1,274.8 872.4 Bank debt drawn ($ millions) 532.2 305.9 Bank loan to value ratio 41.7% 35.1% Equity ($ millions) 719.4 541.5 Shares on issue (millions) 364.4 297.2 NTA per share1 (refer Appendix 2) $1
Slide 10: Capital Management
Capital Management Stride Property Limited — Annual Results Presentation for the year ended 31 March 2016 – 30 May 2016 10
Slide 11: Capital Management
Capital Management As at As at As at Covenant 31 Mar 2016 31 Mar 2016 31 Mar 2015 Loan to Value Ratio (Bank Debt / Property Bank facility limit ≤ 50% 41.7% $560m $400m Values) (ANZ, BNZ, CBA, Westpac) Interest Cover Ratio (EBIT / Interest and ≥ 1.75 x 3.01x Bank debt drawn $532m $306m Financing Cost
Slide 12: Portfolio Overview
Portfolio Overview Stride Property Limited — Annual Results Presentation for the year ended 31 March 2016 – 30 May 2016 12
Slide 13: Portfolio Overview
Portfolio Overview As at 31 Mar 2016 As at 31 Mar 2015 Summary Properties Tenants 59 415 41 281 Net Lettable Area (m2) 432,337 334,694 WALT (years) 7.9 5.1 Occupancy Rate (by area) 99.6% 96.6% Lease Expiry Profile2 Portfolio Value $1,274.8m $872.4m As at 31 March 2016 (by contract rental1) Top Ten T
Slide 14: Major Lease Transactions Completed
Major Lease Transactions Completed Annual Contract Rental Tenant Property Commencement Area (m2) Term (years) ($000) ASB 33 Corinthian Drive, Auckland Oct-16 10,936 9 2,800 The Warehouse 35 MacLaggan Street, Dunedin Aug-15 6,433 6 819 Tasman Liquor Company 22 Ha Crescent, Auckland Jul-15 8,757 3 727
Slide 15: Remaining Lease Expiries FY17 & FY18
Remaining Lease Expiries FY17 & FY18 FY17 % of Property Tenant Net Lettable Area (m2) Contract Rental Johnsonville Shopping Centre, Wellington Various 3,003 1.39 460 Rosebank Road, Auckland Croxley 12,263 0.94 20-22 Pollen Street, Auckland Colorite 2,271 0.46 (sold – settlement due 18/08/2016) 650 G
Slide 16: Portfolio Occupancy 99.6% (by area)
Portfolio Occupancy 99.6% (by area) Occupancy (%) Vacancy (m2) Total Area (m2) Occupancy (%) Property 31 Mar 2016 31 Mar 2016 31 Mar 2016 31 Mar 2015 650 Great South Road, Auckland 100.0 - 8,335 84.3 1 Grey Street, Wellington 100.0 - 10,472 98.2 22 The Terrace, Wellington 91.1. 425 4,780 89.2 Other
Slide 17: Development Projects
Development Projects Stride Property Limited — Annual Results Presentation for the year ended 31 March 2016 – 30 May 2016 17
Slide 18: Development Projects
Development Projects NorthWest Shopping Centre NorthWest Two • Opened 1 October 2015 • Due to open by October 2016 • GFA 34,000m² / NLA 27,000m² • Will comprise four separate buildings offering 7,700m² of retail, dining • Features 100 retail stores, 1,100 car parks, a 8,000m² Farmers and office spac
Slide 19: Acquisitions
Acquisitions Stride Property Limited — Annual Results Presentation for the year ended 31 March 2016 – 30 May 2016 19
Slide 20: Acquisitions: Teed St and Antipodean Portfolio
Acquisitions 35 Teed St, Auckland Antipodean Portfolio • Purchase price of $17.0m, providing a yield of 7.0% • Nationwide portfolio of 19 Large Format Retail properties in strong • Settled 30 June 2015 catchment areas with exposure to the non-discretionary take-home food, • Occupies a high profile s
Slide 21: Strategy Overview & Proposed Restructure
Strategy Overview & Proposed Restructure Stride Property Limited — Annual Results Presentation for the year ended 31 March 2016 – 30 May 2016 21
Slide 22: Strategy Overview
Strategy Overview Investment Strategy • Stride is building a portfolio of places with enduring demand, that attract the highest demand in all market conditions, because it meets the needs of our customers, their staff, their visitors and our customers’ customers. • Stride identifies attributes that
Slide 23: Proposed Restructure
Proposed Restructure Stride is pleased to announce its plan to progress a proposal to create a new stapled shareholding structure What is the purpose? • The intention of the proposed restructuring is to: • Provide greater flexibility for its investment structure and facilitate and enable growth in i
Slide 24: Overview of Proposed Stapled Structure
Overview of Proposed Stapled Structure • Stride shareholders will receive 1 SIML share for every 1 Stride share they hold • The below structure provides an illustrative example of the changes that would occur to the shareholding of a shareholder with 1,000 shares Current shareholding Shareholding fo
Slide 25: Practical Impacts of the Stapling Structure
What are the practical impacts of the Stapling structure? • Under the restructuring, shareholders will retain existing Stride shares and receive the same number of shares in SIML and retain the same proportionate interest in the Stapled Group as they currently have in Stride • Stride shareholders wi
Slide 26: Conclusion
Conclusion Stride Property Limited — Annual Results Presentation for the year ended 31 March 2016 – 30 May 2016 26
Slide 27: Conclusion
Conclusion Execution of Strategy • A 4.9% increase in annual cash dividend from 10.25 cps for FY15 to 10.75 cps for FY16 • NorthWest Shopping Centre opened 1 October 2015 • NorthWest Two development on track to be completed by October 2016 • Capital raising initiatives undertaken for the acquisition
Slide 28: Appendices
Appendices Stride Property Limited — Annual Results Presentation for the year ended 31 March 2016 – 30 May 2016 28
Slide 29: Appendix 1: Valuation Summary
Appendix 1 VALUATION SUMMARY 31 Mar 16 Revaluation Revaluation Market Cap Market Cap 31 Mar 16 Revaluation Revaluation Market Cap Market Cap Address Address Valuation Movement1 Movement1 Rate 2016 Rate 2015 Valuation Movement1 Movement1 Rate 2016 Rate 2015 $m % $m % % $m % $m % % 33 Corinthian Drive
Slide 30: Appendix 1: Valuation Summary (continued)
Appendix 1 VALUATION SUMMARY 31 Mar 16 Revaluation Revaluation Market Cap Market Cap Address Valuation Movement1 Movement1 Rate 2016 Rate 2015 $m % $m % % 15 Rockridge Avenue, Auckland 2.10 10.5 0.20 - - LAND/DEVELOPMENT 2.10 10.5 0.20 - - TOTAL INVESTMENT PROPERTIES 1,216.76 5.1 56.31 6.93 7.22 39
Slide 31: Appendix 2
Appendix 2 Stride Property Stride PropertyLimited Limited—— Interim AnnualResults Results Presentation Presentation for the forsix themonths year ended ended31 30March September – 30 May 2016 2015 – 12 2016 November 2015 31
Slide 32: Thank you
Thank you Important Notice: The information in this presentation is an overview and does not Level 12, 34 Shortland Street contain all information necessary to make an investment decision. It is intended to Auckland 1010, New Zealand constitute a summary of certain information relating to the perfor