Kiwi Property Group Ltd. · NZX:KPG
Kiwi Property — Kiwi Income Property Trust — H1 FY2010 Earnings Presentation
30 slides from Kiwi Property's earnings presentation, Nov 6, 2009
Slide 1: Interim Result for the Six Months Ended 30 September 2009
INTERIM RESULT For the Six Months Ended 30 September 2009 KIWI INCOME PROPERTY TRUST 6 November 2009 Chris Ch i Gudgeon G d Chieff EExecutive Chi i Gavin Parker Chief Financial Officer
Slide 2: Agenda
Interim Result Presentation for the Six Months Ended 30 September 2009 Agenda 2 Chris Gudgeon, Chief Executive – Interim Result Overview Gavin Parker Parker, Chief Financial Officer – Financial Review Chris Gudgeon, Chief Executive – Review of Operations – Portfolio Overview – Market Summaries – Out
Slide 3: Interim Result Overview
Interim Result Overview Interim Result Presentation for the Six Months Ended 30 September 2009
Slide 4: Financial Result
Interim Result Presentation for the Six Months Ended 30 September 2009 Interim Result Overview Financial Result 4 30‐Sept‐09 30‐Sept‐08 Variance Income Statement For the six months ended [$M] [$M] [$M] [%] Total Revenue 95.5 89.3 +6.2 +6.9 Net Rental Income 67.2 66.1 +1.1 +1.7 Operating Profit Befor
Slide 5: Total Returns
Interim Result Presentation for the Six Months Ended 30 September 2009 Interim Result Overview Total Returns 5 – The Trust has generally out‐ Annual 2 year 5 year Total Returns performed the two NZX For the periods to 30‐Sept‐09 [%pa] [%pa cum] [%pa cum] indices KIP [Unit Price $1.06] ‐0.3 ‐7.5 6.9
Slide 6: Capital Management Initiatives
Interim Result Presentation for the Six Months Ended 30 September 2009 Interim Result Overview Capital p Management g Initiatives 6 Target / Value I ii i Initiative D Date [$M] 9 Institutional Placement 50 8‐Apr‐09 9 Unit Purchase Plan 15 8‐Jun‐09 9 Asset Sale [Fisher & Paykel Finance Building] 12 1
Slide 7: Gearing
Interim Result Presentation for the Six Months Ended 30 September 2009 Interim Result Overview Gearingg 7 Bank – Average gearing over the last Gearing [%] Trust Deed C Covenant five financial years is less Gearing as at 31‐Mar‐09 33.1 35.0 than 26%, well below the Completed capital management initia
Slide 8: Financial Review
Financial Review Interim Result Presentation for the Six Months Ended 30 September 2009
Slide 9: Distributable Profit
Interim Result Presentation for the Six Months Ended 30 September 2009 Financial Review Distributable Profit 9 Distributable Profit 30‐Sept‐09 30‐Sept‐08 Variance For the six months ended [$M] [$M] [$M] [%] Net Operating Income ‐ Retail 35.7 35.6 +0.1 +0.2 Distributable Profit [$M] 70 Net Operating
Slide 10: Balance Sheet
Interim Result Presentation for the Six Months Ended 30 September 2009 Financial Review Balance Sheet 10 30‐Sept‐09 31‐Mar‐09 Movement Balance Sheet [$M] [$M] [$M] [%] Assets Property Assets 1,832.6 1,906.2 ‐73.6 ‐3.9 Other Assets 8.4 10.5 ‐2.1 ‐20.0 Total Assets 1,841.0 1,916.7 ‐75.7 ‐3.95 Liabilit
Slide 11: Debt - Facility Summary
Interim Result Presentation for the Six Months Ended 30 September 2009 Financial Review Debt ‐ Facilityy Summaryy 11 Bank Facilities 30 Sept 09 30‐Sept‐09 31 Mar 09 31‐Mar‐09 Bilateral facilities [ANZ, BNZ, CBA and Westpac] $800M $800M Facility balance drawn $557M $634M Facility balance undrawn $243
Slide 12: Debt - Hedging Profile
Interim Result Presentation for the Six Months Ended 30 September 2009 Financial Review Debt – Hedging g g Profile 12 Hedging Profile 30 Sept 09 30‐Sept‐09 31 Mar 09 31‐Mar‐09 Percentage of drawn debt hedged [fixed rate] 96% 89% Weighted average interest rate on hedged debt (excl margin & fees) 6.12
Slide 13: Debt Covenants
Interim Result Presentation for the Six Months Ended 30 September 2009 Financial Review Debt Covenants 13 Debt Covenants Threshold 30 Sept 09 30‐Sept‐09 31 Mar 09 31‐Mar‐09 Bank Covenants L Loan tto value l ratio ti Calculated as bank borrowings (incl. interest rate derivatives liability of $29.3M <
Slide 14: Review of Operations
Review of Operations Interim Result Presentation for the Six Months Ended 30 September 2009
Slide 15: Retail Sales and Gross Occupancy Costs
Interim Result Presentation for the Six Months Ended 30 September 2009 Review of Operations Retail Sales and Gross Occupancy p y Costs 15 Sales and Gross Occupancy Costs 2009 2008 Variance For the h year ended d d / As at 30‐Sept [Incl. [ l GST]] Portfolio Moving Annual Turnover [MAT] $1,038.7 M $1,
Slide 16: Lease and Rental Activity
Interim Result Presentation for the Six Months Ended 30 September 2009 Review of Operations Lease and Rental Activityy 16 NLA Rental Uplift Portfolio [No ] [No.] [M2] [$000] [%] [CAGR] NEW LEASES AND RENEWALS Centre NLA Rental Uplift Retail1 63 6,166 ‐584 ‐10.0 N/A Sylvia Park 874 m2 +6.8% Office 15
Slide 17: Valuation Summary
Interim Result Presentation for the Six Months Ended 30 September 2009 Review of Operations Valuation Summaryy 17 Capitalisation Rate Value Gain/Loss in Value Portfolio / Property 30‐Sept‐09 31‐Mar‐09 +/‐ bps [$M] [$M] [%] Sylvia Park 6.88% 6.63% ‐25 437.0 ‐11.7 ‐2.6 Centre Place 8.75% 8.88% +13 99.
Slide 18: The Plaza Redevelopment
Interim Result Presentation for the Six Months Ended 30 September 2009 Review of Operations The Plaza Redevelopment p 18 – Development progressing on time and on budget: Stage 1 opened on schedule 5 March 2009 – 7 new specialty stores – 8 new foodcourt outlets – Integration of Countdown supermarket
Slide 19: Portfolio Overview
Portfolio Overview Interim Result Presentation for the Six Months Ended 30 September 2009
Slide 20: Occupancy
Interim Result Presentation for the Six Months Ended 30 September 2009 Portfolio Overview Occupancy p y 20 Portfolio / Property NLA Vacant Occupancy – Portfolio occupancy of 98.5% [M2] [M2] [%] Sylvia Park 71,057 100 99.9% Centre Place 14,739 1,013 93.1% – Vacancy maintained at less Downtown Plaza 6
Slide 21: Diversification: Sector and Regional
Interim Result Presentation for the Six Months Ended 30 September 2009 Portfolio Overview Diversification: Sector and Regional g 21 – Sector – Regional Ownership of both shopping centre and office Ownership of assets throughout New Zealand assets is intended to reduce the volatility of diversifies i
Slide 22: Diversification: Tenant
Interim Result Presentation for the Six Months Ended 30 September 2009 Portfolio Overview Diversification: Tenant 22 – The portfolio contains over 750 retail Analysis of Property Portfolio and office tenants Portfolio No. Tenants NLA Gross Income – The Top 20 tenants comprise ‘blue‐chip’ Retail 83%
Slide 23: Lease Expiry and Weighted Average Lease Term
Interim Result Presentation for the Six Months Ended 30 September 2009 Portfolio Overview Lease Expiry p y and Weighted g Average g Lease Term 23 – On average, less than 12% of portfolio income expires in each of the next five financial years – Weighted average lease term: 4.2 years – Retail: 4.3 ye
Slide 24: Market Summaries
Market Summaries Interim Result Presentation for the Six Months Ended 30 September 2009
Slide 25: General Economy
Interim Result Presentation for the Six Months Ended 30 September 2009 Market Summaries General Economyy 25 – Some recently released statistics point to recovery in economic conditions, for example: – Positive GDP growth in Jun‐09 quarter following five consecutive quarters of negative growth – Posi
Slide 26: Auckland Office
Interim Result Presentation for the Six Months Ended 30 September 2009 Market Summaries Auckland Office 26 Vacancy 1 Overall 10.2%, forecast to increase Rentals 1 Reducing, with increasing incentives Premium CBD Yields 2 Softened 83 bps to 8.14% Investment sales 3 Volume increased from $381 million
Slide 27: Wellington Office
Interim Result Presentation for the Six Months Ended 30 September 2009 Market Summaries Wellington g Office 27 Vacancy 1 Overall 5.8%, forecast to increase Rentals 1 Reducing, with increasing incentives Prime CBD Yields 2 Softened 63 bps to 8.20% Investment sales 3 Volume increased from $86 million
Slide 28: Outlook
Outlook Interim Result Presentation for the Six Months Ended 30 September 2009
Slide 29: Outlook
Interim Result Presentation for the Six Months Ended 30 September 2009 Outlook 29 – Subdued economic and investment activity – Prospects for rental growth constrained: – Vacancy rates expected to increase – Downward pressure on market rentals – The h Trust is expected d to benefit b f from f its def
Slide 30: Disclaimer
Interim Result Presentation for the Six Months Ended 30 September 2009 Disclaimer 30 Kiwi Income Properties Limited is the manager (the ‘Manager’) of Kiwi Income Property Trust ('KIP'). The Manager is a subsidiary of Commonwealth Bank of Australia (the ‘Bank’) ABN 48 123 123 124. Neither the Bank no
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