Stride Property Group · NZX:SPG
Stride Property — H1 FY2017 Earnings Presentation
28 slides from Stride Property's earnings presentation, Nov 17, 2016
Slide 1: Interim Results for the six months ended 30 September 2016
Stride Property Group (NS) Interim Results For the six months ended 30 September 2016 17 November 2016
Slide 2: Agenda & Contents
Agenda & Contents Page Highlights 3 Peter Alexander – Chief Executive Financial Performance 7 Jennifer Whooley – Chief Financial Officer Capital Management 12 Portfolio Overview 14 Development Project 19 Peter Alexander – Chief Executive REIM Business 21 Conclusion 24 Appendix 26 Stride Property Gro
Slide 3: Highlights
Highlights Stride Property Group — Interim Results Presentation for the six months ended 30 September 2016 – 17 November 2016 3
Slide 4: Highlights
Highlights Stride Property Group1 listed on the NZX Main Board on 12 July 2016 Demerger of Investore Property Limited and retention of 19.9% shareholding Growth of real estate investment management (REIM) business Restructure of Diversified NZ Property Trust and settlement of two shopping centres St
Slide 5: Highlights: Financial Performance
Highlights (Prior period to 30 Sep 2015 figures in brackets) Financial Performance • Net rental income of $35.1m ($28.0m) • Management fee income of $2.3m ($0.9m) • Corporate expenses of $9.2m ($3.7m), including $3.1m one-off project costs • Net profit before other income and income tax of $17.5m ($
Slide 6: Highlights: Portfolio
Highlights (Prior period as at 31 Mar 2016 figures in brackets) Portfolio • Net 1.4% property portfolio valuation increase¹ (nine properties were independently valued) Net valuation increase • Stride loan to value ratio (LVR) 38.5%2 (41.7% as at 31 Mar 2016) • Net Tangible Assets (NTA) backing per s
Slide 7: Financial Performance
Financial Performance Stride Property Group — Interim Results Presentation for the six months ended 30 September 2016 – 17 November 2016 7
Slide 8: Financial Performance
Financial Performance Stride Property Group - Consolidated Change Actual Actual 30 Sep 2016 30 Sep 2015 ($ millions) ($ millions) $ millions % Net rental income 35.1 28.0 7.2 25.6 Management fee income 2.3 0.9 1.4 161.2 Corporate expenses (9.2) (3.7) (5.5) (147.3) Net profit before net finance expen
Slide 9: Distributable Profit
Distributable Profit Stride Property Group - Consolidated Change Actual Actual 30 Sep 2016 30 Sep 2015 ($ millions) ($ millions) $ millions % Net profit before income tax 30.0 37.4 (7.4) (19.9) Non-recurring and non-cash adjustments: - Net change in fair value of investment properties (11.6) (18.3)
Slide 10: AFFO Distributable Profit
AFFO Distributable Profit Stride Property Group - Consolidated Change Actual Actual 30 Sep 2016 30 Sep 2015 ($ millions) ($ millions) $ millions % Distributable profit after income tax 18.7 15.4 3.2 21.0 Adjustments to funds from operations: - Maintenance capital expenditure (2.7) (0.4) (2.3) (579.9
Slide 11: Financial Summary
Financial Summary Stride Property Group - Consolidated As at As at 30 Sep 2016 31 Mar 2016 Property value1 ($ millions) 846.2 1,274.8 Bank debt drawn ($ millions) 337.7 532.2 Bank loan to value ratio (LVR)2 38.5% 41.7% Equity ($ millions) 590.8 719.4 Shares on issue (millions) 364.4 364.4 NTA per sh
Slide 12: Capital Management
Capital Management Stride Property Group — Interim Results Presentation for the six months ended 30 September 2016 – 17 November 2016 12
Slide 13: Capital Management
Capital Management Stride Property Limited As at As at As at Covenant 30 Sep 2016 30 Sep 2016 31 Mar 2016 Loan to Value Ratio (Bank Debt / Bank facility limit ≤ 50% 38.5%1 $400m $560m Property Values) (ANZ, BNZ, CBA, Westpac) Interest Cover Ratio (EBIT / Interest ≥ 1.75 x 2.78x2 Bank debt drawn $338
Slide 14: Portfolio Overview
Portfolio Overview Stride Property Group — Interim Results Presentation for the six months ended 30 September 2016 – 17 November 2016 14
Slide 15: Portfolio Summary
Portfolio Summary As at As at Top Ten Tenants2 by Contract Rental1 Lease Expiry Profile3 by Contract Rental1 30 Sep 31 Mar As at 30 Sep 2016 As at 30 Sep 2016 Overview 2016 2016 % of Portfolio Contract Rental % of Portfolio Contract Rental Properties 29 59 Tenants 382 415 4 Net Lettable 4 304,843 43
Slide 16: Major Lease Transactions Completed
Major Lease Transactions Completed Annual Contract Term Rental Tenant Property Commencement Area (m2) (years) ($000) Freedom Furniture 65 Chapel Street, Tauranga April 2017 889 3 1901 NZ Merchants 20 Rockridge Avenue, Auckland April 2017 10,239 3 8401 French Country Collections 460 Rosebank Road, Au
Slide 17: Remaining Lease Expiries FY17 & FY18
Remaining Lease Expiries FY17 & FY18 FY17 Net Lettable % of Property Tenant Area (m2) Contract Rental Johnsonville Shopping Centre (50%), Wellington Various 2,523 1.80 Balance 970 0.50 3,493 2.30 As at 30 September 2016, 2.30% of Contract Rental expiries remained in FY17 (4.78% as at 31 March 2016).
Slide 18: Portfolio Occupancy 96.4% (by area)
Portfolio Occupancy 96.4% (by area) Occupancy (%) Vacancy (m2) Total Area (m2) Occupancy (%) Property 30 Sep 2016 30 Sep 2016 30 Sep 2016 31 Mar 2016 21-25 Teed Street, Auckland 83.0 691 4,071 100.0 35 Teed Street, Auckland 94.5 159 2,874 100.0 22 The Terrace, Wellington 91.1 425 4,780 91.1 Other 10
Slide 19: Development Project
Development Project Stride Property Group — Interim Results Presentation for the six months ended 30 September 2016 – 17 November 2016 19
Slide 20: NorthWest Two
NorthWest Two • Opened in October 2016 • Comprises four separate buildings with an additional 7,700m2 of office, dining and retail space Stride Property Group — Interim Results Presentation for the six months ended 30 September 2016 – 17 November 2016 20
Slide 21: REIM Business
REIM Business Stride Property Group — Interim Results Presentation for the six months ended 30 September 2016 – 17 November 2016 21
Slide 22: Owned and managed properties
RAMBOTAN2015A\Presentations\22. Indigo Presentation\Indigo vf.pptx Owned and managed properties 1 Valuations as at 30 September 2016. 2 Includes Johnsonville Shopping Centre which is a 50/50 joint venture between Stride and Diversified NZ Property Trust. 3 Includes Queensgate Shopping Centre and Cha
Slide 23: Portfolio composition (by Contract Rental)
RAMBOTAN2015A\Presentations\22. Indigo Presentation\Indigo vf.pptx Portfolio composition (by Contract Rental1) 1 Contract Rental is the amount of rent payable by each tenant, plus other amounts payable to Stride by that tenant under the terms of the relevant lease as at 30 September 2016, annualised
Slide 24: Conclusion
Conclusion Stride Property Group — Interim Results Presentation for the six months ended 30 September 2016 – 17 November 2016 24
Slide 25: Conclusion: Execution of Strategy
Conclusion Execution of Strategy • Stride Property Group listed on the NZX Main Board on 12 July 2016 • Stapled structure of Stride Property Group provides ability to grow REIM business • Demerged Investore, the specialist large format retail property investment company, and SIML remains the manager
Slide 26: Appendix
Appendix Stride Property Group — Interim Results Presentation for the six months ended 30 September 2016 – 17 November 2016 26
Slide 27: Appendix 1
Appendix 1 Stride Property Stride Group— PropertyLimited —Interim InterimResults ResultsPresentation Presentation for for the the six months six months ended ended 30 September 30 September – 12 November 2015 2016 – 17 November 2015 2016 27 27
Slide 28: 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 Level 12, 34 Shortland Street Auckland 1010, New Zealand perfor
Stride Property Group — H1 FY2017 Earnings Presentation on 6ix