Investore Property Ltd. · NZX:IPL
Investore Property — HY23 Earnings Presentation
27 slides from Investore Property's earnings presentation, Nov 16, 2022
Slide 1: Interim Results Presentation
Interim Results Presentation For the six months ended 30 September 2022 16 November 2022 Investore Property Limited | HY23 Interim Results Presentation
Slide 2: Contents
Contents 4 Carr Road, Mt Roskill, Auckland 1. Overview 3 2. Portfolio 5 3. Interim Financial Performance 12 4. Capital Management 16 5. Sustainability 20 6. Looking Ahead 22 7. Appendices 24 2 Investore Property Limited | HY23 Interim Results Presentation
Slide 3: 1. Overview
1. Overview 172 Tay Street, Invercargill Investore Property Limited | HY23 Interim Results Presentation 3
Slide 4: Overview
Overview For the six months ended 30 September 2022 (HY23) As at 30 September 2022 Profit before other expense and income tax Investment properties2 32.6% 3.93% $1.2bn Loan to Value Ratio4 Weighted average cost of $17.7m net decline of 3.4% for the six months ended 30 September 2022 debt increase of
Slide 5: 2. Portfolio
2. Portfolio 45 – 49 Jackson Street, Petone, Wellington Investore Property Limited | HY23 Interim Results Presentation 5
Slide 6: National portfolio
National portfolio Auckland (36% of Contract Rental1) 13 properties 53 tenants 78,005 sqm NLA $456m asset value Investore’s portfolio is geographically diversified across the country, with a focus on urban Waikato & Bay of Plenty (21% of Contract Rental) North centres and growth corridors 8 properti
Slide 7: Targeted growth - acquisitions
Targeted growth - acquisitions 3 Averill Street, Papakura, Auckland Auckland freehold land • Investore acquired the balance of the freehold land (12,263 sqm) at its existing property located at 3 Averill St, Papakura, for $18m in August 2022 • The acquisition provides Investore with control of the l
Slide 8: Turnover rent
Turnover rent The proportion of Countdown stores with sales over Turnover income and percentage of stores above turnover thresholds has doubled since March 2018, turnover threshold 1.2 30% with 26% of the Countdown portfolio now paying 26% turnover rent 1.0 23% 25% 21% • Countdown leases (which comp
Slide 9: Active portfolio management
Active portfolio management Key portfolio activities Portfolio metrics1 • 41 rent reviews completed over 41,752 sqm (17% of the As at As at portfolio), resulting in a 4.4% increase on previous rentals 30 Sep 22 31 Mar 22 • 54% of the rent reviews completed were structured Number of properties 44 44
Slide 10: Long lease expiry profile
Long lease expiry profile Long portfolio WALT of 8.5 years, with Lease Expiry Profile2 by Contract Rental 74% of Contract Rental1 expiring in FY30 As at 30 September 2022 and beyond Occupancy is 99.7% by Contract Rental as at 30 September 2022 FY23 28.0% 1.9% Contract Rental expiring: WALT • Bay Cen
Slide 11: Resilient tenants underpin income
Resilient tenants underpin income Investore has a high concentration of anchor tenants (86% of Contract Rental1) and tenants that operate in the “Everyday Needs” category (73% of Contract Rental), resulting in a resilient income stream in varying market conditions Anchor tenant classification by Con
Slide 12: 3. Interim Financial Performance
3. Interim Financial Performance 446 Te Rapa Rd, Hamilton Investore Property Limited | HY23 Interim Results Presentation 12
Slide 13: Interim financial performance
Interim financial performance Change 30 Sep 22 30 Sep 21 $m $m $m % Net rental income 30.2 28.0 +2.2 +7.8 Total corporate expenses (4.6) (5.7) +1.1 +19.4 Profit before net finance expense, other (expense)/income and income tax 25.6 22.3 +3.3 +14.8 Net finance expense (7.9) (6.9) (1.0) (14.0) Profit
Slide 14: Distributable profit
1 Distributable profit Change 30 Sep 22 30 Sep 21 $m $m $m % (Loss)/profit before income tax (25.0) 60.7 (85.7) (141.1) Non-recurring, non-cash items and other adjustments: - Net change in fair value of investment properties 42.7 (44.8) +87.4 +195.3 - Gain on disposal of investment property - (0.6)
Slide 15: Financial summary
Financial summary As at As at 30 Sep 22 31 Mar 22 Change Investment property value1 ($m) 1,197.0 1,201.3 (4.3) Total borrowings ($m) (390.6) (355.0) +35.6 Loan to Value Ratio (LVR) 32.6%2 29.5%2 (3.1) Equity ($m) 812.1 855.0 (43.0) Shares on issue (millions) 367.5 368.1 (632) Net Tangible Assets (NT
Slide 16: 4. Capital Management
4. Capital Management 24 Anzac Road, Browns Bay, Auckland Investore Property Limited | HY23 Interim Results Presentation 16
Slide 17: Proactive capital management
Proactive capital management As at As at Highlights Debt facilities 30 Sep 22 31 Mar 22 • $75m bank facilities extended to November Debt facilities limit 2025. No debt maturing until FY25 (ANZ, CCB1, Westpac, ICBC2), $475m $475m including $350m bonds • WALT bank covenant removed and LVR covenant red
Slide 18: Loan to value ratio
Loan to value ratio1 Investore has continued to actively manage its debt, maintaining a relatively low loan to value ratio +0.8% +1.1% +1.1% +0.3% +0.1% +0.6% 34.4% +1.0% 32.6% 29.5% LVR as at Papakura Waimak Share Capital Revaluations LVR as at Waimak Other capital Pro forma 31 Mar 22 land Junction
Slide 19: Hedging and cost of debt
Hedging and cost of debt As at As at Cost of debt 30 Sep 22 31 Mar 22 Highlights Weighted average cost of • 91% of drawn debt is fixed. Investore considers it is well debt (incl. current interest protected against changes in interest rates over the short to 3.93% 3.77% rate derivatives, bonds and me
Slide 20: 5. Sustainability
5. Sustainability Cnr Te Irirangi Drive & Bishop Dunn Place, Botany, Auckland Investore Property Limited | HY23 Interim Results Presentation 20
Slide 21: Sustainability
Sustainability Investore continues to focus on ensuring its portfolio remains sustainable for the future Focus Category Work completed to date FY23 work in progress Greenhouse gas • Scope 1 and 2 emissions collected and • Undertake lifecycle carbon assessment for Waimak Junction Countdown emissions
Slide 22: 6. Looking ahead
6. Looking ahead 20-24 Neville Street, Warkworth, Auckland Investore Property Limited | HY23 Interim Results Presentation 22
Slide 23: Looking ahead
Looking ahead • High portfolio concentration of “Everyday Needs” tenants underpins a resilient income stream in varying market conditions • Proactive capital management remains a key focus in volatile market conditions • Explore opportunities to recycle selected assets into higher growth investment
Slide 24: 7. Appendices
7. Appendices 4 Carr Road, Mt Roskill, Auckland Investore Property Limited | HY23 Interim Results Presentation 24
Slide 25: Appendix A
Appendix A Profit before other expense and income tax $1.4m $1.1m $17.7m ($0.2m) $0.7m $0.9m ($1.2m) $15.4m ($0.3m) 30 Sep 21 Net rental Net rental Net rental Net rental Higher net Lower Higher 30 Sep 22 increase from decrease from increase from increase from finance expense performance and administ
Slide 26: Appendix B
Appendix B Net Contract Rent $0.1m $0.2m $60.2m $60.5m As at 31 Mar 22 Turnover Rent reviews As at 30 Sep 22 Investment Properties (excl. lease liabilities) $1,201.3m $32.8m $4.3m $1,197.0m $1.2m ($42.7m) As at Net change in fair value Capital expenditure Acquisitions Recognition of As at 31 Mar 22
Slide 27: Thank you
Thank you Level 12, 34 Shortland Street Auckland 1010, New Zealand PO Box 6320, Victoria Street West, Auckland 1142, New Zealand P +64 9 912 2690 W investoreproperty.co.nz Important Notice: The information in this presentation is an overview and does not contain all information necessary to make an