Precinct Properties Nz Ltd & Precinct Properties Investments Ltd · NZX:PCT

Precinct Properties Nz Ltd & Precinct Properties Investments — AMP NZ Office — Corporate Update (March 2011)

17 slides from Precinct Properties Nz Ltd & Precinct Properties Investments's corporate update, Mar 14, 2011

  1. Slide 1: AMP NZ Office Limited (ANZO) ANZ Centre Redevelopment and Update

    AMP NZ Office Limited (ANZO) ANZ Centre Redevelopment and Update 14 March 2011

  2. Slide 2: Agenda

    Agenda Page 2 Section 1 – ANZ Centre Redevelopment Page 3 Section 2 – Leasing Activity Page 11 Section 3 – Earnings Outlook and Dividend Policy Page 14 ANZO Update, 14 March 2011

  3. Slide 3: Section 01 – ANZ Centre Redevelopment

    Section 01 – ANZ Centre Redevelopment

  4. Slide 4: ANZ Centre Redevelopment

    ANZ Centre Redevelopment Page 4  ANZ has committed to a 15 year lease over 18 floors (17,700m2) commencing 1 January 2014.  ANZ will become ANZO’s largest customer contributing c.8% of gross income.  Fixed annual rent reviews of 2.75% and 3.0% with mid term market review subject to a 10% cap and

  5. Slide 5: Description of Works

    Description of Works Page 5 Total project cost of $76m, including:  Lobby - Refurbished and extended lobby. - New Albert Street entrance including glass pavilion. - Dedicated meeting room suite for ANZ.  ANZ Floors - Refurbished floors including inter-tenancy staircase.  Building Services - Chill

  6. Slide 6: Level 7 Cutaway Plan

    Level 7 Cutaway Plan Page 6

  7. Slide 7: Context

    Context Page 7  Auckland office market experienced significant new supply in past 2 years.  In conjunction with reduced demand due to weak economic conditions, vacancy has trended upwards. – Current Auckland prime CBD vacancy rate of 9.8% from 2.8% at peak.  Prime market rents reduced by 14% from

  8. Slide 8: Auckland Prime CBD Office Vacancy

    Auckland Prime CBD Office Vacancy Page 8 Vacant Space sqm Vacancy Rate %  Positive absorption 70,000 25% expected. 60,000  Excluding ASB, vacancy 20% closer to 8% in 2013. 50,000  Significant impact on prime 40,000 15% vacancy rates within the Auckland CBD. 30,000 10%  Vacancy forecast to be 24,

  9. Slide 9: Auckland Prime CBD Rent Forecast

    Auckland Prime CBD Rent Forecast Page 9  Differential in 2013 equal to ANZ New Build ANZ Retained $380 $32/m2, forecast to widen to $82/m2 by 2015. $360  Prime rents forecast to $340 increase by 5.8% over the Net Prime Office Rent (psqm) next 3 years. $320 – Compares to (4.6%) if $300 the ANZ were

  10. Slide 10: Key Financials

    Key Financials Page 10  30 June 2010 valuation of $170m assumes Key Metrics ($m) probability of ANZ retention Current valuation ANZ vacate – ANZ departure would reduce valuation to ANZ Centre $150 $150m. Project Cost $76  Forecast valuation of $233m in 2013 Book Value at Completion $226 – Market c

  11. Slide 11: Section 02 – Leasing Activity

    Section 02 – Leasing Activity

  12. Slide 12: Leasing Activity – 21 Queen Street

    Leasing Activity – 21 Queen Street Page 12 Level 17 New Lease  4 new leases including two new customers. New Lease 461 m²  Strong customer covenant, 37% leased to Level 16 New Lease government departments. Level 15 New Lease  Occupancy now 63% compared to 30% as at Level 14 Leased 31 December 201

  13. Slide 13: Portfolio Overview

    Portfolio Overview Page 13  Significant improvement in key As stated in Interim Results Presentation metrics due to ANZ retention and leasing success within 21 Queen Key Metrics Portfolio Auckland Wellington Street. Portfolio Value ($m) $1,279 m $606 m $673 m – Portfolio occupancy now 94%. WALT (ye

  14. Slide 14: Section 03 – Earnings Outlook and Dividend Policy

    Section 03 – Earnings Outlook and Dividend Policy

  15. Slide 15: Earnings Outlook

    Earnings Outlook Page 15  Full year 2011 earnings of 5.9 to 6.1 cps confirmed.  As previously announced, FY12 earnings are expected to be negatively impacted by refinancing, building depreciation changes, Westpac departure and market reversion.  Due to the wide range of market estimates, early gu

  16. Slide 16: Dividend Policy

    Dividend Policy Page 16  The Board’s review of dividend policy balanced the following: – Investors’ desire for a high yield with low volatility. – Ensuring sustainable long term returns for ANZO shareholders.  Revised ANZO dividend policy: – Around 90% of distributable earnings, equivalent to arou

  17. Slide 17: Conclusion

    Conclusion Page 17  ANZ retained demonstrating a refreshed approach to customers by ANZO.  Significant further leasing success at 21 Queen Street, with occupancy lifted to 63% from 30%.  Enhanced ANZO portfolio metrics; occupancy 94%, WALT 5.8 years.  Major supply risk mitigated for Auckland mar

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