Investore Property Ltd. · NZX:IPL
Investore Property — Shareholder Meeting (June 2018)
25 slides from Investore Property's shareholder meeting presentation, June 2018
Slide 1: Annual Shareholder Meeting 2018
ANNUAL SHAREHOLDER MEETING 2018
Slide 2: Board of Directors
BOARD OF DIRECTORS Mike Allen Kate Healy Gráinne Troute Tim Storey John Harvey Independent Independent Independent SIML Nominee SIML Nominee
Slide 3: Agenda
AGENDA Chair’s Address – Mike Allen Manager’s Review – Philip Littlewood Shareholder Questions Formal Business – Mike Allen General Business and Shareholder Questions Investore Property Limited – Annual Shareholder Meeting 2018 3
Slide 4: Chair's Address – Mike Allen
CHAIR’S ADDRESS MIKE ALLEN
Slide 5: FY18 An Active Year
FY18 AN ACTIVE YEAR POSITIVE activity and PERFORMANCE throughout the FORECAST period 1 COMPLETION of the foundational STRATEGIC work PROGRAMME 1. Forecasts contained within the Product Disclosure Statement issued by Investore Property Limited (Investore) on 10 June 2016 and associated informatio
Slide 6: Financial Performance
FINANCIAL PERFORMANCE Profit Before Income Tax Profit After Income Tax $26.8m, up $1m on forecast $46.2m, up $27.0m on forecast Portfolio Valuation NTA Per Share $738.3m, net valuation gain 3.3% 2 $1.64, up 9 cps from March 2017 Distributable Profit3 After Annual Cash Current Income Tax Dividend for
Slide 7: Non-Financial Performance
NON-FINANCIAL PERFORMANCE Occupancy – 99.9% 13.1 YEARS – WALT 4 Attractive portfolio LEASE EXPIRY profile – 19% expiring within 10 years and 81% NOT EXPIRING UNTIL FY29 OR LATER Improved PORTFOLIO DIVERSITY 4. Weighted Average Lease Term (WALT) Investore Property Limited – Annual Shareholder
Slide 8: Proactive Capital Management - Bond
PROACTIVE CAPITAL MANAGEMENT- BOND $100m Outcome: Bond Issued 18 April 2018 Average debt facility maturity of 3.5YRS 6 years Debt tenor ALIGNS to long-term leases Interest rate Improved DIVERSIFICATION 4.4% of funding Investore Property Limited – Annual Shareholder Meeting 2018 8
Slide 9: Proactive Capital Management - Debt
PROACTIVE CAPITAL MANAGEMENT-DEBT CONSERVATIVE on interest rate RISK Board reviewed LVR , setting a MAXIMUM 48% 5 Banking and bond COVENANTS to not EXCEED 65% 41.6% LVR at balance date 5. Loan to Value Ratio (LVR) Investore Property Limited – Annual Shareholder Meeting 2018 9
Slide 10: Delivery of Phase 1 and 2 Strategy
DELIVERY OF PHASE 1 AND 2 STRATEGY 2015 2016 2017 2018 2019 Phase 1: Portfolio Establishment Phase 2: Portfolio Optimisation & Capital Management Animates 3 Bunnings APR 6 LFR FEB Invercargill FEB properties acquired properties development for $78.5m acquired complete JUN Investore Countdown Hornby
Slide 11: Investment Strategy Recap
INVESTMENT STRATEGY RECAP Long Lease Terms High Occupancy Rate Nationally Recognised Tenants Investore Property Limited – Annual Shareholder Meeting 2018 11
Slide 12: Looking Ahead
LOOKING AHEAD Three focus areas: 1 REPOSITION existing PORTFOLIO to optimise value e.g., acquisition and development 2 Source VALUE ADD TRANSACTIONS e.g., brownfields redevelopments 3 Continued focus on CAPITAL MANAGEMENT Investore Property Limited – Annual Shareholder Meeting 2018 12
Slide 13: Relationship with the Manager
RELATIONSHIP WITH THE MANAGER Shareholders SPL 19.9% Appointment of Directors Management SIML/Manager Agreement 13
Slide 14: Directors and Governance
DIRECTORS AND GOVERNANCE TRANSITION to a majority of INDEPENDENT DIRECTORS GRÁINNE TROUTE appointed 19 April 2018 FY18 Board SELF-REVIEW completed GOVERNANCE remains a key focus Investore Property Limited – Annual Shareholder Meeting 2018 14
Slide 15: Manager's Address – Philip Littlewood
MANAGER’S ADDRESS PHILIP LITTLEWOOD
Slide 16: Active Management
ACTIVE MANAGEMENT FY18 FOCUS: 1 Manage the portfolio to increase value and income growth 2 Seek quality development and investment opportunities, aligned with investment mandate 3 Execute capital management initiatives Investore Property Limited – Annual Shareholder Meeting 2018 16
Slide 17: Operational Activity and Highlights
OPERATIONAL ACTIVITY AND HIGHLIGHTS 1 ACQUISITIONS • Bunnings Transaction • Acquisition of adjacent sites 2 DIVESTMENTS • Countdown Hornby Christchurch • Fresh Choice Queenstown 3 DEVELOPMENTS • Mitre 10 Mega Botany Investore Property Limited – Annual Shareholder Meeting 2018 17
Slide 18: Portfolio as at 31 March 2018
PORTFOLIO AS AT 31 MARCH 2018 TENANT DIVERSIFICATION GEOGRAPHIC DIVERSIFICATION 6 BY CONTRACT RENTAL6 BY CONTRACT RENTAL Waikato - 11% Bunnings - 10% Wellington - 17% Auckland - 31% Foodstuffs - 5% Specialty - 6% Mitre10 - 3% The Warehouse - 3% Other Nth Island - 18% Other Sth Island - 7% Canterbury
Slide 19: Formal Business – Mike Allen
FORMAL BUSINESS MIKE ALLEN
Slide 20: Resolutions
RESOLUTIONS
Slide 21: Resolution 1: Auditor's Remuneration
RESOLUTION 1 Auditor’s Remuneration That the Directors be authorised to fix the remuneration of PricewaterhouseCoopers as auditor, for the ensuing year.
Slide 22: Resolution 2: Re-election of Director
RESOLUTION 2 Re-election of Director That Kate Healy, who is eligible for re-election, be re-elected as a Director of Investore Property Limited, pursuant to clause 20.3 of the constitution.
Slide 23: Resolution 3: Election of Director
RESOLUTION 3 Election of Director That Gráinne Troute, who was appointed as a Director of Investore Property Limited on 19 April 2018, be elected as a Director of Investore, pursuant to clause 20.3 of the constitution.
Slide 24: General Business and Shareholder Questions
GENERAL BUSINESS AND SHAREHOLDER QUESTIONS
Slide 25: Thank You
THANK YOU Important Notice: The information in this presentation is an overview and does not contain all information necessary to make an investment decision. It is intended to constitute a summary of certain information relating to the performance of Investore for the year ended 31 March 2018. Plea