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
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
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
Slide 3: Section 01 – ANZ Centre Redevelopment
Section 01 – ANZ Centre Redevelopment
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
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
Slide 6: Level 7 Cutaway Plan
Level 7 Cutaway Plan Page 6
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
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,
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
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 $226 – Market c
Slide 11: Section 02 – Leasing Activity
Section 02 – Leasing Activity
Slide 12: Leasing Activity – 21 Queen Street
Leasing Activity – 21 Queen Street Page 12 Level 17 New Lease 4 new leases including two new customers. New Lease 461 m² Strong customer covenant, 37% leased to Level 16 New Lease government departments. Level 15 New Lease Occupancy now 63% compared to 30% as at Level 14 Leased 31 December 201
Slide 13: Portfolio Overview
Portfolio Overview Page 13 Significant improvement in key As stated in Interim Results Presentation metrics due to ANZ retention and leasing success within 21 Queen Key Metrics Portfolio Auckland Wellington Street. Portfolio Value ($m) $1,279 m $606 m $673 m – Portfolio occupancy now 94%. WALT (ye
Slide 14: Section 03 – Earnings Outlook and Dividend Policy
Section 03 – Earnings Outlook and Dividend Policy
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
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
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