Stride Property Group · NZX:SPG
Stride Property — DNZ Property Fund — FY2013 Earnings Presentation
35 slides from Stride Property's earnings presentation, May 22, 2013
Slide 1: Annual Result for the Period Ended 31 March 2013
ANNUAL RESULT FOR THE PERIOD ENDED 31 MARCH 2013
Slide 2: Agenda & Contents
AGENDA & CONTENTS DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Page Tim Storey Introduction Chairman Paul Duffy Highlights 3 Chief Executive Financial Performance 6 Jennifer Whooley Capital Management 10 Chief Financial Officer Portfolio Overview 12 Patri
Slide 3: Highlights
DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 3 HIGHLIGHTS
Slide 4: Highlights
HIGHLIGHTS (31 MARCH 2012 FIGURES IN BRACKETS) DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Share price trading at a premium to Net Tangible Asset backing (NTA) Net rental income of $53.511m ($52.910m) Operating profit before other income and income tax o
Slide 5: Highlights
HIGHLIGHTS (31 MARCH 2012 FIGURES IN BRACKETS) DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Occupancy increased to 99.6% (98.7%) Weighted average lease term (WALT) 5.2 years (5.4 years) 171 lease transactions over 244,893m2 for a total annual rental of $3
Slide 6: Financial Performance
DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 6 PERFORMANCE FINANCIAL
Slide 7: Financial Performance
FINANCIAL PERFORMANCE CONSOLIDATED GROUP Actual Actual DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 31 Mar 2013 31 Mar 2012 Variance ($ millions) ($ millions) ($ millions) Net rental income 53.5 52.9 0.6 Management fee income 1.3 1.3 0.0 Corporate expense
Slide 8: Distributable Profit
DISTRIBUTABLE PROFIT CONSOLIDATED GROUP Actual Actual DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 31 Mar 2013 31 Mar 2012 Variance ($ millions) ($ millions) ($ millions) Net profit before income tax 53.5 25.8 27.7 NZ IFRS and other adjustments: - Net cha
Slide 9: Financial Summary
FINANCIAL SUMMARY As at As at DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 31 Mar 2013 31 Mar 2012 ($ millions) ($ millions) Property values1 667.0 658.3 Bank debt drawn 246.4 267.3 Bank loan to value ratio 36.9% 40.6% Equity 408.4 381.0 Shares on issue2
Slide 10: Capital Management
10 DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 MANAGEMENT CAPITAL
Slide 11: Capital Management
CAPITAL MANAGEMENT As at As at As at DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 31 Mar 31 Mar 31 Mar Covenant Covenant 2013 2013 2012 Loan to Value Ratio (Bank Debt / Property Values) ≤ 50% 36.9% Bank Facility limit $300m $300m (ANZ, BNZ, CBA) Interest
Slide 12: Portfolio Overview
12 DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 PORTFOLIO OVERVIEW
Slide 13: Portfolio Summary
PORTFOLIO SUMMARY DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 As at As at Overview 31 Mar 2013 31 Mar 2012 Properties 48 51 Tenants 258 252 Net Lettable Area (m2) 354,502 379,965 WALT (years) 5.2 5.4 Occupancy Rate (by area) 99.6% 98.7% Asset Valuation $
Slide 14: Major Lease Transactions Completed
MAJOR LEASE TRANSACTIONS COMPLETED DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Annual Contract Tenant Property Commencement Area (m2) Term (years) Rental ($) Value Tyres1 62 Columbia Avenue, Christchurch Aug 2012 12,665 10 1,000,000 The Warehouse 35 MacL
Slide 15: Remaining Lease Expiries FY14 & FY15
REMAINING LEASE EXPIRIES FY14 & FY15 FY14 DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Net Lettable % of Property Tenant Area (m2) Contract Rental 1 Grey Street, Wellington Westpac 4,266 2.88 Johnsonville Retail, Wellington Various 2,811 1.79 65 Chapel St
Slide 16: Portfolio Occupancy 99.6%
PORTFOLIO OCCUPANCY 99.6% Occupancy (%) Vacancy (m2) Total Area (m2) Occupancy (%) DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Property 31 Mar 2013 31 Mar 2013 31 Mar 2013 31 Mar 2012 7 - 9 Fanshawe Street, Auckland 100.0 0 4,804 94.8 650 Great South Roa
Slide 17: Developments & Acquisitions
17 DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 DEVELOPMENTS & ACQUISITIONS
Slide 18: Strategy: Developments & Acquisitions
STRATEGY DEVELOPMENTS & ACQUISITIONS DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Developments Land held by DNZ is in growth regions with strong demographic characteristics Land is zoned for the proposed developments Proximity of major arterial routes Des
Slide 19: Office / Warehouse Development, O'Rorke Road, Auckland
OFFICE / WAREHOUSE DEVELOPMENT O’RORKE ROAD, AUCKLAND DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Hydraulink Fluid Connectors Limited New 3,390m2 integrated facility 12 year lease with two yearly rent reviews to market, with Hydraulink having expansion r
Slide 20: Project Update: Johnsonville Shopping Centre
PROJECT UPDATE JOHNSONVILLE SHOPPING CENTRE DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Centre occupancy is being maintained Pre-development planning continues with the development team and consultants Capital contribution of infrastructure works has bee
Slide 21: Acquisition Strategy: Auckland's Growth Nodes
ACQUISITION STRATEGY AUCKLAND’S GROWTH NODES DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Investments in Albany (FY13), Silverdale and Westgate Zone 5 Land (FY14), located in three of Auckland’s major growth nodes Both the Silverdale and Westgate Zone 5 L
Slide 22: Acquisitions: Corinthian Drive, Albany
ACQUISITIONS CORINTHIAN DRIVE, ALBANY DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 51 Corinthian Drive, Albany, Auckland Purchase price $12.9m 100% leased Three level, 3,412m2 plus basement parking New nine year lease to Westpac (76% of the property) Deve
Slide 23: Acquisitions: Silverdale Centre
ACQUISITIONS SILVERDALE CENTRE DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Acquisition price of $78m Opened in October 2012 Located in one of New Zealand’s fastest growing residential catchments 36 bulk and specialty retailers including Warehouse Station
Slide 24: Acquisitions: Westgate Zone Land
24 DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 WESTGATE ZONE 5 LAND ACQUISITIONS
Slide 25: Acquisitions: Westgate Zone Land
ACQUISITIONS WESTGATE ZONE 5 LAND DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Conditional agreement to purchase the development land (6.23 ha) comprising zone 5 of the proposed Westgate Town Centre Purchase price $25m Resource consent granted to build an
Slide 26: Capital Raise
26 DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 CAPITAL RAISE
Slide 27: Capital Raise
CAPITAL RAISE DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Two separate capital raising initiatives to raise up to $80 million of equity to partially fund the Silverdale Centre and Westgate Zone 5 Land acquisitions and provide capacity for any future acqu
Slide 28: Capital Raise Timetable
CAPITAL RAISE TIMETABLE DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Indicative Capital Raising Timing Indicative Date Trading Halt Wednesday 22nd 2013 Placement offer Opens 10am, Wednesday 22nd May 2013 Placement offer Closes and Trading Halt lifted (may
Slide 29: Outlook & Conclusion
29 DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 CONCLUSION OUTLOOK &
Slide 30: Outlook
OUTLOOK DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Summary Total return for direct commercial property annual return on quarterly periods to March 2013 Low vacancy levels across all sectors 30% Valuation levels are improving 25% Continue to manage the $
Slide 31: Conclusion
CONCLUSION DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 Outlook Portfolio well positioned in what continues to be a challenging business environment Progress Johnsonville Shopping Centre and Westgate Zone 5 Land development feasibilities Development expos
Slide 32: Appendices
32 DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 APPENDICES
Slide 33: Appendix: Valuation Summary
APPENDIX 1 VALUATION SUMMARY Market Market Market Market DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 31 Mar 2013 Revaluation Revaluation 31 Mar 2013 Revaluation Revaluation Cap Rate Cap Rate Cap Rate Cap Rate Address Valuation Movement1 Movement1 Address
Slide 34: Appendix: Bridge Graphs
34 DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 APPENDIX 2 BRIDGE GRAPHS
Slide 35: Thank You
DNZ PROPERTY FUND LIMITED - ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013 - 22 MAY 2013 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: The informa