Property For Industry Limited · NZX:PFI
Property For Industry — Shareholder Meeting (June 2017)
29 slides from Property For Industry's shareholder meeting presentation, Jun 22, 2017
Slide 1: Welcome to the 2017 Annual Meeting
PF: YOUR INDUSTRIAL PROPERTY EXPERTS WELCOME . TO THE 2017 ANNUAL MEETING
Slide 2: Agenda
ee AGENDA Board and management team presentations Shareholder discussion Financial statements Resolutions General business OO); o1) P|] Ww! ND Close of meeting and refreshments
Slide 3: Board and Management Team Presentations
BOARD AND MANAGEMENT TEAM PRESENTATIONS
Slide 4: 2016 in Context
2016 IN CONTEXT Total assets ($m) Number of properties Occupancy WALT (years) Gearing IFRS earnings (cents per share) Distributable profit (cents per share)
Slide 5: Year Shareholder Return
10 YEAR SHAREHOLDER RETURN PFI Total Shareholder Return Relative to NZX50 Gross Index and NZX Property Gross Index (Rebased to 100, to end of April 2017) 250 200 150 100 ™@ NZX50 Gross Index NZX Property Gross Index © PFIGross Return
Slide 6: Investment Properties
INVESTMENT PROPERTIES 1,200 1,000 800 600 400 200 Founded 0 Rights Issue Merger tere ET acl 93 94 95 96 97 98 99 00 O1 02 03 04 05 06 O7 O8 O9 10 11 12 13 14 15 16
Slide 7: PFI puts money to work, generating income for our shareholders
PFI puts money to work, generating income for our shareholders
Slide 8: How the work gets done. A PFI case study.
How the work gets done. A PFI case study.
Slide 9: Slide 9
Slide 10: The Sistema Portfolio
eee = THE SISTEMA PORTFOLIO 65 Hugo Johnston Drive 80 Hugo Johnston Drive 4 Autumn Place 6 Autumn Place 10 Autumn Place 6,975m? 3,872m? 1,364m? 1,718m? 7,646m?
Slide 11: The Sistema Portfolio
THE SISTEMA PORTFOLIO 65-AND.80-HUGO JOHNSTON DRIVE AND*4, 6, 10-AUTUMN PLACE, PENROSE + Purchased August.2015 for $28.54m * TotabbRent $2.28m (Market $2,25m) + 15 months Initial Term * 6 month Rolling Notice Period
Slide 12: The Boxkraft Agreement (March 2017)
en THE BOXKRAFT AGREEMENT (MARCH 2017) Tenant: Boxkraft Term: 8 years Commencement Date: = 1 March 2017 Comm rent: $457K (market $436k) Rent reviews: Annual fixed review 2.50% 80 Hugo Johnston Drive
Slide 13: The MOTAT Agreement (April 2017)
ee THE MOTAT AGREEMENT (APRIL 2017) Tenant: MOTAT Comm date: 1 April 2017 Term: 7 & 2 years Rental: $642K & $171K (market $633K & $172K) Rent reviews: Annual fixed reviews 2.0% 6 Autumn Place 10 Autumn Place
Slide 14: The Crown Equipment Agreement (June 2017)
a THE CROWN EQUIPMENT Ya AGREEMENT (JUNE 2017) Acquisition price: $11.01m (at August 2015) Valuation: $12.10m (at December 2016) Sold to: Crown Equipment Sale price: $14.25 (settled June 2017)
Slide 15: The Sistema Portfolio: 93% Transacted
eee = THE SISTEMA PORTFOLIO June 2017: 93% Transacted ~~ OQ a & SOLD LEASED UNDER OFFER LEASED LEASED 65 Hugo Johnston Drive 80 Hugo Johnston Drive 4 Autumn Place 6 Autumn Place 10 Autumn Place
Slide 16: The Sistema Portfolio: Property IRR
THE SISTEMA PORTFOLIO A Property IRR of ~24% 50 — 35 417 40 | 21 0.4 30 gly —_ 42 = 30 |. 285 || = Z 20 10 ie) Purchase 6&10 65 Hugo 80 Hugo 4 Autumn Net rent TOTAL price Autumn Johnston Johnston Place RETURN/ Place Drive Drive VALUATION
Slide 17: How the Work Gets Done: Understanding industrial tenants
eee § HOW THE WORK GETS DONE 2 Understanding industrial tenants 4 Realistic expectations
Slide 18: Shareholder Discussion
SHAREHOLDER DISCUSSION
Slide 19: Financial Statements
FINANCIAL STATEMENTS |
Slide 20: Resolutions
RESOLUTIONS
Slide 21: Annual Meeting Resolutions
ANNUAL MEETING RESOLUTIONS The board recommends that you vote in favour of each of the resolutions. RESOLUTION 1: That Humphry Rolleston, who retires and is eligible for re-election, be re-elected as a director of the Company. RESOLUTION 2: That Anthony Beverley, who retires and is eligible for re-e
Slide 22: Internalisation Agreement
INTERNALISATION AGREEMENT ▪ On 3 April 2017, PFI announced that the Independent Directors had reached a conditional agreement with PFIM Limited (“PFIM”) to internalise the management of PFI ▪ Key features of the internalisation include: ▪ A payment of $42.0 million (implying a net cost for internali
Slide 23: Independent Appraisal Report
INDEPENDENT APPRAISAL REPORT ▪ Northington Partners has assessed the fair market value of the Management Agreement to be in a range between $48 million and $56 million, and estimated the value to PFI of the Proposed Internalisation to be in a range between $63 million and $78 million ▪ This compares
Slide 24: Independent Appraisal Report (cont.)
INDEPENDENT APPRAISAL REPORT (CONT.) ▪ In their Independent Appraisal Report, Northington Partners concluded that: “Taking all the key elements of the Proposed Internalisation into account, we conclude that the consideration and terms and conditions are fair to the PFI shareholders not associated wi
Slide 25: Support of Independent Directors
SUPPORT OF INDEPENDENT DIRECTORS ▪ The Independent Directors unanimously support the internalisation and believe that it is in the best interests of PFI shareholders ▪ The Independent Directors view the internalisation as a strategic opportunity to bring management in-house while ensuring the contin
Slide 26: Internalisation Resolution
INTERNALISATION RESOLUTION RESOLUTION 4: That the shareholders ratify, confirm and approve, pursuant to an agreement between the Company and PFIM dated 31 March 2017, the: a. termination of the Management Agreement between the Company and PFIM; and b. acquisition by the Company of the business of PF
Slide 27: General Business
GENERAL BUSINESS ©
Slide 28: Close of Meeting and Refreshments
CLOSE OF MEETING AND REFRESHMENTS
Slide 29: Disclaimer
a DISCLAIMER The information included in this presentation is provided as at 22 June 2017. Neither Property For Industry Limited (PFI) nor PFIM Limited (PFIM), the manager of PFI, guarantee the repayment of capital or the performance referred to in this presentation. Past performance is not a reliab
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