Precinct Properties Nz Ltd & Precinct Properties Investments Ltd · NZX:PCT
Precinct Properties Nz Ltd & Precinct Properties Investments — Precinct Properties New Zealand — Investor Presentation (September 2013)
27 slides from Precinct Properties Nz Ltd & Precinct Properties Investments's investor presentation, Sep 3, 2013
Slide 1: Equity raising: Placement and share purchase plan
Equity raising Placement and share purchase plan 03.09.2013 Disclaimer: Not for release or distribution in the United States
Slide 2: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION This presentation has been prepared by Precinct Properties New Zealand Limited ("Company"), and is provided so that you may consider an invitation to participate in the proposed private placement of shares ("Shares") in the Company ("Placement"). You must read th
Slide 3: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION Some of the information contained in this presentation may constitute forward looking statements that are subject to various risks and uncertainties. Nothing in this presentation is a promise or representation as to the future. Statements or assumptions in this p
Slide 4: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION This presentation has not been and will not be lodged or registered with the Australian Securities & Investments Commission or the Australian Securities Exchange Limited and the Company is not subject to the continuous disclosure requirements that apply in Austra
Slide 5: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION SINGAPORE This presentation and any other materials relating to the Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this presentation and any other document or materia
Slide 6: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION Any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) received in connection with the issue or sale of the Shares has only been communicated or caused to be communicated and will only be communicated or caused to
Slide 7: Agenda
Agenda Equity raising overview Transaction rationale Offer details and timetable Precinct Properties New Zealand Limited Scott Pritchard, CEO George Crawford, CFO Note: All $ are in NZD PRECINCT EQUITY RAISING, 3 SEPTEMBER 2013 Page 7
Slide 8: FY13 highlights
FY13 highlights Financial performance $157.5m net profit after tax $58.3m net operating income +13.6% increase in net operating income $46m revaluation gain Strong results +5% and Forecast increase in FY14 dividend operational Portfolio performance gains 97% occupancy ANZ Centre Supreme Winner Prope
Slide 9: Equity raising overview
Equity raising overview ■ Purpose – Capital management initiative to reduce gearing levels and position Precinct to deliver on medium term opportunities within its existing portfolio ■ Two separate initiatives targeting $60 million of equity – $50 million underwritten placement – $10 million share p
Slide 10: Transaction rationale
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Slide 11: Recent use of debt capacity
Recent use of debt capacity Asset type allocation (by value) ■ Lift in gearing from defensive strategy – ANZ Centre redevelopment ■ Lift in gearing from active strategy – Bowen Campus, Downtown Shopping Centre and HSBC House ■ Portfolio optimisation – Increased allocation to Auckland – Exposure to a
Slide 12: Portfolio composition
Portfolio composition 80% proportion of office revenue 59% weighting (by value) to Auckland 38% weighting (by value) to Auckland waterfront precinct 97% occupancy Classification Value $m Description Active 148 Assets with significant development or redevelopment potential Assets required in orde
Slide 13: 'Active' opportunities
‘Active’ opportunities Downtown Shopping Centre Bowen Campus Indicative project costs Existing NLA: 13,950sqm 30,167sqm Valuation as at 30 June 2013 Consented GFA: 71,000 sqm 60,000 sqm Bowen Campus $51.9m Downtown Shopping Centre $96.2m Project type: Demolition and development Refurbishment and red
Slide 14: Future Portfolio composition
Future Portfolio composition Assuming the delivery of medium term portfolio objectives: ■ Weighting to Auckland to increase from 60% to over 70% ■ Weighting to the Downtown Precinct to increase from 38% to approximately 50% ■ Exposure to government leases expected to reduce ■ Quality of underlying a
Slide 15: Medium term funding
Medium term funding ■ Funding of around $365m required for portfolio opportunities ■ $232m of non core assets identified ■ A $60 to $70 million equity issue – Provides for around $100 to $110 million of funding (assuming 37.5% gearing) – Is expected to provide sufficient funding to deliver on medium
Slide 16: Pro forma balance sheet
Pro forma balance sheet ■ 37.3% gearing at 30 June 2013 Financial Position as at 30 June 2013 ($m) Audited Pro-forma1 – Increases to 38% post Assets commitments Property assets $1,640.4 m $1,640.4 m ■ Assuming $60m ($70m) of new Fair value of swaps $3.8 m $3.8 m equity: Deferred Tax - Fair Value of
Slide 17: Earnings outlook
Earnings outlook 6.2 cps ■ Previously announced FY14 guidance unchanged Forecast FY14 net – Net operating income after operating income tax of 6.2 cps after tax – Dividend of 5.4 cps 5.4 cents per share FY14 dividend guidance +5% Forecast increase in FY14 dividend compared to FY13 PRECINCT EQUITY RA
Slide 18: Equity offer detail and timetable
Equity offer detail and timetable
Slide 19: Placement
Placement ■ Managed and underwritten by Macquarie Placement details Securities (NZ) Limited with the price to be established via a bookbuild Target Equity $50m Close price 2 September 2013 (ex ■ Placement price underwritten at $1.00 dividend) $1.045 ■ Allotment and settlement of shares on 5 day VWAP
Slide 20: Share purchase plan
Share purchase plan ■ Precinct intends to offer New Zealand Share Purchase Plan resident shareholders the opportunity to participate in a SPP on the following basis: Target SPP amount $10m SPP Cap $20m – Targeting $10 million Maximum per shareholder $15,000 – Ability to take up to an additional $10
Slide 21: Timetable
Timetable Fourth quarter dividend Date Ex date 2 September 2013 Record date 4 September 2013 Dividend payment date 19 September 2013 Institutional placement Placement bookbuild and trading halt 3 September 2013 Advise of institutional allocations and trading halt lifted 4 September 2013 NZX Placemen
Slide 22: Conclusions
Conclusions ■ Precinct has utilised its balance sheet to improve the portfolio and position itself with significant medium term opportunities ■ Delivering medium term portfolio opportunities expected to add significant value and require capital to realise ■ Capital requirement will be funded through
Slide 23: Appendices
Appendices Precinct Portfolio
Slide 24: Auckland Property Portfolio
Auckland Property Portfolio 01. 02. 03. 04. 05. 06. PwC Tower ANZ Centre AMP Centre SAP Tower Zurich House Downtown Shopping Centre Occupancy 92% Occupancy 100% Occupancy 100% Occupancy 96% Occupancy 94% Occupancy 99% WALT 5.9 years WALT 11.5 years WALT 6.0 years WALT 4.2 years WALT 5.6 years WALT 2
Slide 25: Auckland Property Portfolio
Auckland Property Portfolio 07. HSBC House Occupancy 100% WALT 4.1 years Clients HSBC Bank, NZTA Limited, Baldwins Limited Queen Street, Auckland HSBC House comprises a 21 level commercial office tower situated on a prime waterfront CBD site. This is a landmark building occupying one of the most pro
Slide 26: Wellington Property Portfolio
Wellington Property Portfolio 01. 02. 03. 04. 05. 06. State Insurance Tower Vodafone on the Quay No. 1 The Terrace 171 Featherston Street 125 The Terrace Pastoral House Occupancy 88% Occupancy 100% Occupancy 100% Occupancy 100% Occupancy 100% Occupancy 100% WALT 5.1 years WALT 5.1years WALT 5.3 year
Slide 27: Wellington Property Portfolio
Wellington Property Portfolio 07. 08. 09. 10. 05. 06. Bowen Campus Deloitte House Mayfair House 80 The Terrace PwC Tower PwC Tower Occupancy 97% Occupancy 100% Occupancy 100% Occupancy 78% Occupancy 87% Occupancy 87% WALT 1.7 years WALT 3.3 years WALT 2.9 years WALT 4.7 years WALT 6 years WALT 6 yea
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