National Storage Reit · ASX:NSR
National Storage Reit — FY2019 Earnings Presentation
26 slides from National Storage Reit's earnings presentation, Aug 28, 2019
Slide 1: FY19 Results
FY19 RESULTS NATIONAL STORAGE REIT AUGUST 2019
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by National Storage REIT (“NSR”) comprising National Storage Holdings Forward-looking statements Limited (ACN 166 572 845) and National Storage Financial Services Limited (ACN 600 787 246 and AFSL 475 This presentation may contain certain "forward-looki
Slide 3: Australasia's largest self-storage owner-operator
As Australasia’s largest self-storage owner-operator, NSR is focused on driving organic growth across its 168 storage centres, and executing a strong pipeline of acquisition and development opportunities.
Slide 4: Strategy
STRATEGY ASSET ACQUISITIONS PORTFOLIO & PRODUCT & CAPITAL MANAGEMENT DEVELOPMENT INNOVATION MANAGEMENT MANAGEMENT Focus on Executing high-quality Expansion projects and Embracing digital Efficiency and organic growth, acquisitions across developments in transformation, effectiveness in capital platf
Slide 5: Agenda: FY19 Results, FY20 Outlook
AGENDA FY19 RESULTS • A-IFRS profit of $144.8 million • Underlying earnings1 of $62.4 million (+21%) • Underlying EPS1 of 9.6 cents per stapled security • NTA of A$1.63 per stapled security (+8%) • FY19 Total Return2 of 15.0% • Australian Portfolio3 Occupancy of 81.4% (+1.0%) • REVPAM3 of $206 (+0.5
Slide 6: FY19 Highlights
FY19 HIGHLIGHTS UNDERLYING EPS 9.6 CENTS | A-IFRS PROFIT $144.8 MILLION UNDERLYING ASSETS UNDER AUSTRALIAN PORTFOLIO TOTAL RETURN3 EARNINGS1 MANAGEMENT OCCUPANCY2 $62.4m 81.4% 15.0% p.a. $1.95b (up 21%) (Up 1.0%) (up 36%) UNDERLYING SAME CENTRE ACQUISITIONS NET TANGIBLE EPS1 REVPAM2 COMPLETED ASSETS
Slide 7: Profit & Loss
PROFIT & LOSS FOR THE YEAR ENDED 30 June 2019 $ Million FY19 FY18 % Change STRATEGY CONTINUES TO DELIVER SOLID GROWTH Storage rev enue 139.4 123.6 13% Sales of goods and serv ices 6.7 6.3 6% Other rev enue 6.1 5.4 13% • FY19 performance Total Revenue 152.2 135.3 12% Operating Centre Expenditure • Op
Slide 8: Summary Balance Sheet
SUMMARY BALANCE SHEET AS AT 30 June 2019 $ Million Jun 19 Jun 18 Movement NTA GROWTH AND GEARING RESET Cash 178.8 21.3 157.5 Investment Properties • NTA increased to $1.63 per stapled security 1,949.1 1,431.4 517.7 (net of Finance Lease Liability) (June 2018: $1.51) an increase of 8% Intangible Asse
Slide 9: Capital Management
CAPITAL MANAGEMENT FOR THE YEAR ENDED 30 June 2019 $345 MILLION EQUITY RAISED TO FUND Capital Management Jun-19 Jun-18 CONTINUED ACQUISITION GROWTH Cash Balance $178.8m $21.3 • June 2019 gearing 33% Total debt facilities $868m $715m • Target range 25% - 40% (Covenant 55%) Total debt drawn $848m $600
Slide 10: Operational Transformation
OPERATIONAL TRANSFORMATION RESETTING AND STREAMLINING THE OPERATIONAL PLATFORM People Improvement • Recruiting operational managers from outside the self-storage industry with multi-site retail management experience • Improved Contact Centre team and upgraded systems to facilitate better conversion
Slide 11: Key Operational Metrics
KEY OPERATIONAL METRICS ACTIVE MANAGEMENT OF RATE AND OCCUPANCY TO MAINTAIN MOMENTUM REVPAM – AUSTRALIAN PORTFOLIO REVPAM – AUSTRALIAN PORTFOLIO June 2018 Centres June 2016 Centres 220 220 210 215 200 210 190 205 180 200 170 160 195 150 190 Aug-16 Aug-17 Aug-18 Feb-17 Mar-17 Feb-18 Feb-19 Jun-16 Dec
Slide 12: Key Operational Metrics
KEY OPERATIONAL METRICS CONTINUED INCREASES IN OCCUPANCY Occupancy - Australia • Australian Portfolio 81.4% (+1.1%) 85.0% • New Zealand Portfolio 85.7% (+1.0%) 80.0% Jun-14 75.0% Jun-15 • Approximately 60% of centres are trading at or above 80% occupancy 70.0% Jun-16 • 17% of centres trading above 9
Slide 13: Built Capacity
BUILT CAPACITY OPPORTUNITY FOR CONTINUED OPERATIONAL IMPROVEMENT • Significant growth in NLA through acquisition and development Total Australian NLA 800,000 • Australian Portfolio 30 June 2019 NLA – 738,000sqm • Target occupancy 85% - 90% 700,000 • Opportunity “runway” Additional revenue at $250/sq
Slide 14: New Zealand
NEW ZEALAND STRONG ACQUISITION AND OPERATIONAL PERFORMANCE • Acquired 9 storage centres for NZ$144 million • Portfolio now consists of 22 storage centres, plus 3 development sites across New Zealand Occupancy - New Zealand 90.0% • Expanded Auckland presence with 3 established centres and 3 developme
Slide 15: Acquisition Update
ACQUISITION UPDATE 35 CENTRES TOTALLING OVER $350M TRANSACTED IN FY19 FY19 ACQUISITIONS • National Storage has successfully transacted 35 storage centres in FY19 for in excess of REGION NUMBER OF TOTAL NLA CENTRES (SQM) $350 million plus 4 new development sites • Continued pursuit of high-quality ac
Slide 16: Acquisition Pipeline
ACQUISITION PIPELINE ACQUISITION PIPELINE REMAINS STRONG • Strong start to FY20 • Successfully contracted the remaining 3 APSF centres at Kelvin Grove, Albion and Canterbury totalling $64 million • Additional 5 centres valued at approximately $62 million under contract or letter of offer • Acquisiti
Slide 17: Strategic Initiatives
STRATEGIC INITIATIVES 17
Slide 18: Overview of Strategic Initiatives
OVERVIEW OF STRATEGIC INITIATIVES CONTINUING TO IDENTIFY VALUE ADD OPPORTUNITIES Strategic initiatives designed to optimise the value of our portfolio, drive earnings accretion, and find additional cost-effective sources of capital to continue our successful consolidation strategy. −1 Capital partne
Slide 19: Development and Expansion Pipeline
DEVELOPMENT AND EXPANSION PIPELINE EXECUTING A STRONG PIPELINE OF DEVELOPMENT OPPORTUNITIES DA LODGED CONSTRUCT • Completed 6 expansion and development projects during SETTLED ION CENTRE LOCATION STRUCTURE Status FY19 delivering 28,300sqm of NLA BA • Within Australia NSR has 7 expansion and developm
Slide 20: Joint Ventures and Partnerships
JOINT VENTURES AND PARTNERSHIPS SUCCESSFUL COMPLETION OF APSF JV AND CONTINUATION OF BFG JV AND PARSONS PARTNERSHIP APSF • Acquisition of completed Kelvin Grove and Albion developments from APSF (July 2019) • Agreement to acquire APSF Canterbury on completion (anticipated September 2019) • Total val
Slide 21: FY20 Guidance and Outlook
FY20 GUIDANCE AND OUTLOOK FY20 DISTRIBUTION GUIDANCE – Greater than 4% Growth per Stapled Security UNDERLYING EPS GROWTH1 PER STAPLED SECURITY UNDERLYING EARNINGS GROWTH Greater than 4.0% Growth (10.0 CENTS) Greater than $78 MILLION 1 – NSR provides this guidance assuming no unforeseen circumstances
Slide 22: Appendices
TTT HI will PMTTEN IES i NATIONAL (STORAGE, La rT = i PERSONAL BUSINESS TRAILER MOVING STORAGE STORAGE HIRE SUPPLIES
Slide 23: NSR Footprint
NSR FOOTPRINT *includes all centres managed, operated and licensed as National Storage 23
Slide 24: Portfolio Metrics
PORTFOLIO METRICS 30 June 2018 30 June 2019 AUST NZ MGT TOTAL AUST NZ MGT TOTAL Freehold centres 101 13 3 117 126 22 4 152 Leasehold centres 16 - - 16 15 - - 15 Total centres 1 117 13 3 133 141 22 4 167 Freehold NLA (sqm) 540,000 68,000 17,000 625,000 670,000 120,000 21,000 811,000 Leasehold NLA (sq
Slide 25: Thank You
THANK YOU WWW.NATIONALSTORAGE.COM.AU INVEST@NATIONALSTORAGE.COM.AU 25
Slide 26: Notes
NOTES 26