Property For Industry Limited · NZX:PFI
Property For Industry — H1 FY25 Earnings Presentation
36 slides from Property For Industry's earnings presentation, Feb 25, 2025
Slide 1: Welcome to the Interim Results Briefing
WELCOME TO THE INTERIM RESULTS BRIEFING
Slide 2: Change in balance date and comparison basis
Fisher & Paykel Appliances 78 Springs Road Following the change in PFI and its subsidiaries’ balance date from 31 December to 30 June, throughout this presentation (and the accompanying interim results announcement and interim financial statements), in order to provide a useful basis for comparison,
Slide 3: Contents
CONTENTS FY25 INTERIM RESULTS HIGHLIGHTS PORTFOLIO INTERIM RESULTS CAPITAL MANAGEMENT SUSTAINABILITY MARKET OUR PRIORITIES REVIEW & QUESTIONS
Slide 4: Highlights
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Slide 5: H1 FY25 highlights
Valuation of $2.1bn industrial property portfolio showing signs of recovery, 15 properties revalued at the half-year, fair value gains on properties of $16.6m or 3.1%, Profit after tax of $28.8m, up $7.6m on the pcp, incorporating fair net tangible assets confirmed at $2.72 cents per share value gai
Slide 6: PFi
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Slide 7: Daikin, 30-32 Bowden Road
Daikin 30-32 Bowden Road ▼ June 2024: 91 ▼ June 2024: 126 ▲ June 2024: $99.7m ▲ June 2024: 98.6% ▲ June 2024: 5.07 years 7
Slide 8: Portfolio valuation metrics
▼ ▲ ▼2% on 30 June 2024 ▼8 bps on 30 June 2024 1 Average increase in valuer assessed market rents between 30 June 2024 and 31 December 2024 for the 15 properties that received full valuations, 2 Based on 31 December 2024 passing rent to independent valuer assessed market rents 8
Slide 9: Contract rent secured in H1 FY25
▪ Total of $13.8m of contract rent secured in H1 FY25 STABILISED DEVELOPMENTS TOTAL ▪ $8.9m of contract rent secured in H1 FY25 relates to newly CONTRACT RENT ($) $4.9m $8.9m $13.8m developed properties1 % OF PORTFOLIO BY 4.5% 8.3% 12.8% ▪ Of the $4.9m of stabilised contract rent secured in H1 FY25,
Slide 10: Occupancy and lease expiry profile
▪ Portfolio is 98.7% occupied (1.3% vacancy) and there is no contract rent due to expire over the remainder of FY25 (chart below) ▪ PFI has agreed commercial terms on largest single FY26 expiry, TDX, $725k, or 0.7% of contract rent (16.9% of FY26 expiries) (chart on right) ▪ Post balance date, lease
Slide 11: Rent reviews during H1 FY25
▪ 49 rent reviews during H1 FY25 delivered an increase of 7.8% on ~$36.7m of contract rent (~6.6% annualised, up from 5.7% in FP24) − 30 fixed reviews delivered an increase of 2.9% on ~$24.7m of contract rent 40% Expiries 0.0% (~2.9% annualised) − Six market rent reviews delivered an increase of 20.
Slide 12: FY25 Interim Results
PFi FY25 INTERIM RESULTS O03
Slide 13: Net rental income
$54m ▪ Net rental income1 of $51.9m up $3.5m or 7.3% on the pcp ($48.4m) +0.2 +0.0 $53m +0.9 ▪ Additional income from the completion of 5 Green +0.9 51.9 Star development projects at 30-32 Bowden Road $52m -0.6 and Stage 1 of 78 Springs Road contributed to an -0.5 increase of +$2.5m $51m +2.5 ▪ Posi
Slide 14: AFFO movement
4.8 ▪ AFFO of 4.35 cps, 0.23 cps or 4.9% down on FP24 ▪ Interest expense and bank fees up $1.7m or 0.35 4.6 4.58 cps, lower level of capitalised interest following -0.00 completion of development projects 4.4 +0.58 4.35 ▪ Effective tax rate of 15.4% up 5.7% on FP24, driven by lower depreciation dedu
Slide 15: Earnings and dividend guidance
EARNINGS H1 FY25 CPS FP24 CPS CHANGE ▪ H1 FY25 cash dividends total 4.00 cps FUNDS FROM OPERATIONS 4.84 5.03 -0.19 cps or -3.8% ▪ Based on H1 FY25 performance and recent trading, PFI expects to declare FY25 cash ADJUSTED FUNDS FROM OPERATIONS 4.35 4.58 -0.23 cps or -4.9% dividends of 8.50 cps (top e
Slide 16: Portfolio value movement
$2,150m ▪ Portfolio value of $2.09 billion at December 2024 +7.1 -12.7 ▪ Capex at 30-32 Bowden Road and 78 Springs Road $2,100m +16.6 2,091.9 +30.4 (5 Green Star developments), 212 Cavendish Drive (refurbishment), 43 Cryers Road (office 2,050.5 refurbishment), 12 Zelanian Drive (yard extension) $2,0
Slide 17: Net tangible assets per share
280 ▪ Net tangible assets (NTA) per share increased by 1.6 cps or 0.6% +1.0 -2.7 275 +3.3 272.3 ▪ Change in NTA per share driven by increases in the 270.7 fair value of investment properties (+3.3 cps) and 270 retained earnings (+1.0 cps), partly offset by a decrease in the net fair value asset for
Slide 18: Capital Management
PF | FY25 INTERIM RESULTS CAPITAL MANAGEMENT 04
Slide 19: Funding and covenants
DECEMBER 2024 JUNE 2024 ▪ $550m of facilities refinanced or established in H1 FUNDING FY25 BANK FACILITIES DRAWN $548.1m $450.5m ▪ PFI010 Bonds ($100m) repaid in November 2024 BANK FACILITIES LIMIT $725.0m $675.0m ▪ Disposal of 44 Mandeville Street, Christchurch BANK FACILITIES HEADROOM $176.9m $224
Slide 20: Debt maturity and hedging profile
$350m $300m 25.0 $250m ▪ PFI’s debt instruments have an average term to expiry $200m of ~3.6 years (top chart), with adequate unutilised $150m bank facility capacity 275.0 $100m 200.0 150.0 $50m 100.0 50.0 50.0 $m 25.0 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 Bank Debt Bonds Pricoa Facility $600
Slide 21: Sustainability
PFi FY25 INTERIM RESULTS SUSTAINABILITY ff
Slide 22: Sustainability targets and status
SOLAR METERING GREEN STAR TARGET: Install solar systems at five buildings TARGET: Implement power metering and TARGET: Significant new buildings to target a by the end of 20251 monitoring for 90% of properties by minimum 5 Green Star certification. the end of FY25. STATUS: STATUS: STATUS: We have su
Slide 23: Sustainable refurbishment at 212C Cavendish Drive
A sustainable refurbishment was carried out on the vacant property at 212C Cavendish Drive, Wiri using PFI’s Sustainable Refurbishment Framework. This framework provides a way to minimise environmental impacts when undertaking refurbishment projects through a preference for lower-carbon materials an
Slide 24: Market
PFi MARKET OG
Slide 25: Auckland industrial rents and cap rates
$260 $240 $220 ▪ After unprecedented growth over the last 5 Rent / m2 (per annum) $200 years, CBRE1 are expecting Auckland industrial $180 rents to plateau through to 2025 before $160 returning to growth from 2026 onward (top $140 chart) $120 $100 ▪ PFI has achieved market leading rents on its 2019
Slide 26: FY25 Interim Results
FY25 INTERIM RESULTS PFi un) — FE ra a a cc 5 ‘eo
Slide 27: Our Portfolio
PFi OUR PORTFOLIO
Slide 28: 30-32 Bowden Road and 78 Springs Road Stage 1
30-32 BOWDEN 78 SPRINGS ROAD TOTAL ROAD – STAGE 1 TOTAL PROJECT COST $101.3m $111.2m $212.5m (INCLUDING LAND) VALUATION 1 $101.5m $120.0m $221.5m MARKET CAP RATE 1 5.25% 5.38% 5.32% 30-32 Bowden Road TOTAL CONTRACT RENT $5.1m $6.1m $11.2m VALUER ASSESSED MARKET RENT 1 $5.4m $6.7m $12.1m WEIGHTED AVE
Slide 29: Development projects and pipeline
▪ Both buildings have achieved practical ▪ Stage 1 achieved practical completion ▪ Spedding Road provides the opportunity ▪ PFI to commence redevelopment of completion, and were delivered on-time in October 2024, and was delivered on- to invest an additional ~$130m remaining brownfield sites from 20
Slide 30: Springs Road
PF | FY25 INTERIM RESULTS 78 SPRINGS ROAD S$60.1m >6.0% $3.7m ~60~ ~16,000sqm
Slide 31: Neilson Street Estate
PFi $8.5m 3.58 FY25 INTERIM RESULTS Neilson Street Estate 316 NEILSON STREET 3.Oyears 5,607sqm ~5.7ha 31
Slide 32: Review & Questions
PFi REVIEW & QUESTIONS Os. FY25 INTERIM RESULTS ‘wily i id fll il (iM (ul i} | Wid fll nina I I i Hi Lu ll wou thn — wT POM TT CERN FT TE Ju il
Slide 33: Closing summary and outlook
The completion of over $220m of 5 Green Star rated industrial developments on-time and on-budget is a key milestone for PFI. With signs of recovery emerging in the valuation of PFI’s $2.1bn industrial property portfolio, and careful application of strategy, PFI is well placed to navigate the remaind
Slide 34: FY25 Interim Results
PFi FY25 INTERIM RESULTS
Slide 35: Funds / Adjusted Funds From Operations reconciliation
Funds / Adjusted Funds From Operations For the six months ended For the six months ended (unaudited, $000, unless noted) 31 December 2024 30 June 2024 Profit (loss) and total comprehensive income after income tax attributable to the shareholders of the Company 28,758 21,181 Adjusted for: Fair value
Slide 36: Disclaimer
DISCLAIMER: The information included in this presentation is provided as at 25 February 2025 and should be read in conjunction with the interim financial statements, NZX results announcement, NZX Form –Results Announcement and NZX Form –Distribution Notice issued on that same day. Property for Indus
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