Investore Property Ltd. · NZX:IPL
Investore Property — H1 FY2017 Earnings Presentation
24 slides from Investore Property's earnings presentation, Nov 16, 2016
Slide 1: Interim Results
Interim Results For the six months ended 30 September 2016 Investore Property Limited – Interim Results Presentation for the six months ended 30 September 2016 – 16 November 2016
Slide 2: Agenda & Contents
Agenda & Contents Page Highlights 3 Peter Alexander – Chief Executive Financial Performance 6 Jennifer Whooley – Chief Financial Officer Capital Management 10 Portfolio Overview 12 Development Projects 16 Acquisitions 18 Peter Alexander – Chief Executive Strategy Overview 20 Conclusion 22 2 Investor
Slide 3: Highlights
Highlights Investore Property Limited – Interim Results Presentation for the six months ended 30 September 2016 – 16 November 2016
Slide 4: Highlights
Highlights (Prior six month period to 31 March 2016 figures in brackets) NZX Main Board Listing Investore listed and commenced trading on the NZX Main Board on 12 July 2016 NZX Listing Raised $185m new equity capital 12 July 2016 Financial Performance Net rental income of $13.3m ($7.5m) Corp
Slide 5: Highlights
Highlights Portfolio Total portfolio value of $642.8m NTA Net Tangible Assets (NTA) backing per share of $1.47 per share No lease expiries in FY17 $1.47 FY18 lease expiries at 4.3% of the portfolio contract rental1 Occupancy at 99.7% Weighted average lease term (WALT) 14.4 years FY17 No
Slide 6: Financial Performance
Financial Performance Investore Property Limited – Interim Results Presentation for the six months ended 30 September 2016 – 16 November 2016
Slide 7: Financial Performance
Financial Performance Actual Actual Change 30 Sep 2016 31 Mar 2016 ($ millions) ($ millions) $ millions % Net rental income 13.3 7.5 5.8 77.8 Corporate expenses (2.0) (0.2) (1.8) (957.8) Net profit before net finance expenses, other expenses and income tax 11.3 7.3 4.0 55.2 Net finance expenses (7.5
Slide 8: Distributable Profit
Distributable Profit Actual Actual Change 30 Sep 2016 31 Mar 2016 ($ millions) ($ millions) $ millions % Net profit before income tax 2.9 3.7 (0.8) (20.7) Non-recurring and non-cash adjustments: - Net change in fair value of investment properties 0.9 0.8 0.1 16.6 - Swap break cost 3.7 0.0 3.7 100.0
Slide 9: Financial Summary
Financial Summary As at As at 30 Sep 2016 31 Mar 2016 Property value ($ millions) 642.8 287.0 Bank debt drawn ($ millions) 261.0 160.0 Bank loan to value ratio 40.6% 55.7% Equity ($ millions) 384.5 0.0 Shares on issue (millions) 261.8 0.0 NTA per share $1.47 Adjusted NTA1 per share $1.47 1. Excludes
Slide 10: Capital Management
Capital Management Investore Property Limited – Interim Results Presentation for the six months ended 30 September 2016 – 16 November 2016
Slide 11: Capital Management
Capital Management As at As at Covenant 30 Sep 2016 30 Sep 2016 Loan to Value Ratio (Bank Debt / ≤ 65% 40.6% Bank facility limit (ANZ, BNZ, CBA, Westpac) $370m Property Values) Interest Cover Ratio (EBIT / Interest Bank debt drawn $261m ≥ 1.75x 3.66 and Financing Costs) 1 Fully Leased Unexpired Term
Slide 12: Portfolio Overview
Portfolio Overview Investore Property Limited – Interim Results Presentation for the six months ended 30 September 2016 – 16 November 2016
Slide 13: Portfolio Summary
Portfolio Summary Tenant diversification1 Overview As at The Warehouse 30 Sep 2016 Mitre 10 3% 4% Properties 39 Foodstuffs Specialty 6% 5% Tenants 71 Net Lettable Area (m2) 173,506 Occupancy Rate (by area) 99.7% General WALT (years) 14.4 Distributors Limited (Countdown) Asset Valuation $642.8m 82% G
Slide 14: Remaining Lease Expiries FY17 & FY18
Remaining Lease Expiries FY17 & FY18 FY17 Net Lettable Area % of Property Tenant (m2) Contract Rental Nil FY18 Net Lettable Area % of Property Tenant (m2) Contract Rental Corner Te Irirangi Drive & Bishop Dunn Place, Auckland Mitre 10 12,124 3.66 Balance 717 0.67 12,841 4.33 As at 30 September 2016,
Slide 15: Portfolio Occupancy 99.7% (by area)
Portfolio Occupancy 99.7% (by area) Occupancy (%) 30 Vacancy (m2) Total Area (m2) Property Sep 2016 30 Sep 2016 30 Sep 2016 226 Great South Road, Auckland 94.0 443 7,384 3-7 Mill Lane, Warkworth 98.0 76 3,815 Corner Hanson St, John St & Adelaide Road, Wellington 98.7 64 4,881 Other 100.0 0 157,426 T
Slide 16: Development Projects
Development Projects Investore Property Limited – Interim Results Presentation for the six months ended 30 September 2016 – 16 November 2016
Slide 17: Development Projects
Development Projects Scheduled to open March 2017 GFA 835m² Animates, Features two retail tenancies Invercargill Total capital expenditure of $2.145m Total rental expected $0.230m p.a., of which Animates is $0.205m p.a. Completed in October 2016 Seismic upgrade of heritage buildings an
Slide 18: Acquisitions
Acquisitions Investore Property Limited – Interim Results Presentation for the six months ended 30 September 2016 – 16 November 2016
Slide 19: Acquisitions
Acquisitions SCA Portfolio Nationwide portfolio of 14 large format retail properties in strong catchment areas with exposure to the non-discretionary take-home food, packaged liquor and groceries sector High quality tenant in General Distributors Limited, the operator of Countdown supermarkets i
Slide 20: Strategy Overview
Strategy Overview Investore Property Limited – Interim Results Presentation for the six months ended 30 September 2016 – 16 November 2016
Slide 21: Investment Philosophy and Strategy
Investment Philosophy and Strategy Large format retail properties have a specific, differentiating set of attributes that can provide a reliable income return to shareholders. These attributes are: Investment – Quality tenants, including significant national retailers, offering rental income stabi
Slide 22: Conclusion
Conclusion Investore Property Limited – Interim Results Presentation for the six months ended 30 September 2016 – 16 November 2016
Slide 23: Conclusion
Conclusion Execution of Strategy Successful NZX Main Board listing on 12 July 2016 Listing on NZX Settlement of SCA properties, Tranche 1 assets on 12 July 12 July 2016 2016 and Tranche 2 assets on 28 September 2016, for $267.4m in total Cash dividend guidance of 5.13cps for FY17 in line with
Slide 24: 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 six months ended 30 September