Property For Industry Limited · NZX:PFI
Property For Industry — H1 2022 Earnings Presentation
38 slides from Property For Industry's earnings presentation, Aug 22, 2022
Slide 1: Welcome to the 2022 Interim Results Briefing
ELCOME 0 THE — 2022 INTERI RESULTS BRIEFING
Slide 2: Contents
CONTENTS Contents Interim Results Briefing HIGHLIGHTS PORTFOLIO 2022 INTERIM RESULTS CAPITAL MANAGEMENT ESG MARKET OUR PRIORITIES REVIEW & QUESTIONS
Slide 3: Highlights
Trey 7 _ 2 i A = er. IGHLIGHTS
Slide 4: Highlights
Highlights Interim Results Briefing 2022 PORTFOLIO DELIVERING STRONG RENTAL GROWTH: $28.7 million of contract rent reviewed during H1 2022 delivering an average annualised uplift of 4.8%, 9.6% of contract rent leased during H1 2022 at an average of 15.6% above previous contract rents, 3.9% of contra
Slide 5: Portfolio
Slide 6: Portfolio Snapshot
Portfolio Interim Snapshot Results Briefing 2022 ▪ PFI's portfolio is diversified across 97 properties and 135 tenants, with 100.0% occupancy and a JUNE 2022 DECEMBER 2021 weighted average lease term of 5.32 years, weighted towards Auckland industrial property BOOK VALUE $2,192.7m $2,168.9m NUMBER O
Slide 7: Valuations
Valuations Interim Results Briefing 2022 ▲ ▲ c GAINS on assets held for sale 39 Edmundson Street and 330 Devon Street East ▲ 7 1For those 11 properties. 2CBRE “Auckland Rent & Yield Update”, June 2022
Slide 8: Leasing
Leasing Interim Results Briefing 2022 ▲ ▲ 8
Slide 9: H2 2022 Lease Expiries
H2 2022 Interim Lease Results Expiries Briefing 2022 ▪ Portfolio is 100.0% occupied (0.0% vacancy) and 3.9% of contract rent is due to expire in H2 2022 (graph below), largest single expiry 46.8% of that (1.8% of contract rent, chart on right) ▪ Leasing demand remains robust, all remaining H2 2022 e
Slide 10: H2 2022 Lease Expiries
H2 2022 Interim Lease Results Expiries Briefing 2022 ▲ 45% 40% Market 4.6% 35% Expiries 3.9% 30% CPI 4.2% 25% 20% CBRE five year average rental growth estimates1 for Auckland: ▲ 15% Fixed 28.2% 10% ▲ ▲ 5% 0% H2 2022 10 1CBRE “Auckland Property Market Outlook” June 2022
Slide 11: 2022 Interim Results
2022 INTERIM RESULTS
Slide 12: Net Rental Income
Net Rental Interim Income Results Briefing 2022 $49m ▪ Net rental income of $47.6 million up $1.6 million or 3.6% +0.1 +0.2 on the prior interim period of $48m +0.6 $45.9 million -0.3 47.6 ▪ Positive leasing activity $48m -0.3 +1.3 contributed to an increase totalling +$1.9 million $47m ▪ Net impact
Slide 13: Adjusted Funds From Operations
Adjusted Interim Funds From Results Operations Briefing (cents per share) 2022 5.3 ▪ Profit after tax of $23.8 million +0.04 ▪ AFFO earnings of 4.64 cents 5.2 +0.08 per share, 0.07 cents per share +0.42 (cps) or 1.5% less than the 5.1 prior interim period 5.0 ▪ Net rental income (including AFFO adju
Slide 14: Earnings, Dividends, Guidance
Earnings, Interim Dividends, Results Guidance Briefing 2022 ▪ H1 2022 cash dividends total 3.60 cents per EARNINGS H1 2022 CPS H1 2021 CPS CHANGE share (cps), in line with H1 2021 ▪ 2022 dividend guidance now 8.10 cps, at top FUNDS FROM OPERATIONS 5.13 5.36 -0.23 CPS or -4.3% of initial guidance ran
Slide 15: Investment Properties
Investment Interim Properties Results Briefing 2022 $2,210m ▪ Portfolio value of $2.193 billion, including properties classified as +1.3 held for sale (AHFS) +5.8 $2,200m ▪ Full valuations of 11 properties +6.8 resulted in uplift of $18.9 million 2,192.7 or 9.8%, AHFS reclassifications $2,190m +19.5
Slide 16: Net Tangible Assets
Net Tangible Interim Assets Results (cents per share) Briefing 2022 312 ▪ Net tangible assets (NTA) per share increased by 6.2 cents per share (cps) or 2.0% +2.8 310 309.6 ▪ Change in NTA per share driven -0.5 by the increase in the fair value of investment properties (+3.9 308 cps), an increase in
Slide 17: Goodwill
Goodwill Interim Results Briefing 2022 ▪ Goodwill of $29.086 million arose on the merger with Direct Property Fund (DPF) in July 2013 and represented the excess of the consideration over the fair value of the assets acquired ▪ Goodwill is tested for impairment by comparing the Company’s net assets t
Slide 18: Capital Management
Capital Interim. Management Results Briefing 2022 bi | i wm a “nl \ ai CAPITAL MANAGEMENT
Slide 19: Share Buyback Programme
Share Interim Buyback Results Programme Briefing 2022 ▪ On-market share buyback programme of up 160% 160% 3.203.50 150% 150% Share Price ($), NTA ($) Share Price ($), NTA ($) to 5% of ordinary shares, announced on 25 3.003.00 140% 140% May 2022 130% 130% 2.802.50 (%) 120% 120% P/NTA(%) ▪ At the time
Slide 20: Funding, Covenants, Interest Rates
Funding, Interim Covenants, Results Interest Rates Briefing 2022 ▪ $100 million BNZ facility extended in June JUNE 2022 DECEMBER 2021 2022 FUNDING ▪ Post balance date, USPP facility established BANK FACILITIES DRAWN $402.7m $401.2m with Pricoa, providing access to long-term funding BANK FACILITIES L
Slide 21: Debt Facility Maturity Profile, Hedging
Debt Facility Interim Maturity Profile, Results Hedging Briefing 2022 $300m $250m ▪ Average term to expiry of bank $200m facilities and bonds (top graph) 150.0 $150m 100.0 of ~3.5 years, $122.3 million of unutilised bank facility capacity $100m 150.0 125.0 $50m 100.0 100.0 $m FY22 FY23 FY24 FY25 FY2
Slide 22: ESG
Interim Results Briefing 2019
Slide 23: Environmental, Social and Governance (ESG)
Environmental, Interim Social and Results Governance Briefing (ESG) 2022 ▪ Replaced HVAC systems containing ozone-depleting gases at 16 properties. ▪ Committed to a 5 Green Star certification target for our upcoming development at 30-32 Bowden Road. Looking after our tenants ▪ Began applying PFI’s S
Slide 24: Environmental, Social and Governance (ESG)
Environmental, Interim Social and Results Governance Briefing (ESG) 2022 Bringing us closer to the operational performance of our buildings Playing a more active role in energy and water efficiency Working with tenants on sustainability initiatives Embedding sustainability in our facilities manageme
Slide 25: Environmental, Social and Governance (ESG)
Environmental, Interim Social and Results Governance Briefing (ESG) 2022 ▪ Carolyn Steele has joined the PFI Board as an Independent Director and a member of the Audit and Risk Committee ▪ Carolyn is currently the Chair of Halberg Foundation and a director of WEL Networks, Green Cross Health, and Vu
Slide 26: Market
Interim Results Briefing ©» 2022
Slide 27: Market Update
Market Update Interim Results Briefing 2022 ▪ Auckland industrial vacancy remains at all time lows 16% ▪ These favourable supply/demand conditions provide 14% a platform for forecast rental growth, potentially 12% helping offset any interest rate driven softening in 10% yields 8% 6% ▪ In the context
Slide 28: Our Priorities
Results Briefing 2022 Our Priorities | Interim aie i) a OUR PRIORITIES
Slide 29: Our Portfolio (Target & Current)
Our Portfolio Interim (Target & Current) Results Briefing 2022 29
Slide 30: Brownfield Opportunities
Brownfield Interim Opportunities Results Briefing 2022 ▪ ~$219 million or 10% of the portfolio held in % OF brownfield opportunities, providing a growing PROPERTY JUNE 2022 LETTABLE SITE LEASE CONTRACT VALUE AREA(SQM) COVERAGE EXPIRY pipeline of medium-term development RENT opportunities 30-32 BOWDE
Slide 31: 30-32 Bowden Road
PFi 30-32 BOWDEN ROAD
Slide 32: Brownfield Opportunities: 30-32 Bowden Road
Brownfield Interim Opportunities Results Briefing 2022 ▪ Large 3.9ha site in one of Auckland’s prime industrial locations ▪ ~40% of development (inside the red lines) pre- leased to Tokyo Food, for a lease term of 12-years from June 2024, remainder of site to be developed on a speculative basis ▪ Es
Slide 33: 30-32 Bowden Road
Slide 34: Brownfield Opportunities: 78 Springs Road
Brownfield Interim Opportunities Results Briefing 2022 ▪ Significant 10.4-hectare site in East Tamaki ▪ Multiple warehouse redevelopment and refurbishment options on a versatile heavy industrial zoned site that can accommodate large- scale facilities ▪ October 2024 lease expiry provides PFI with a s
Slide 35: Assets Held For Sale
Assets Held Interim For Sale Results Briefing 2022 39 JUNE 2022 EDMUNDSON 330 DEVON SHED 22 PRO FORMA DIVESTMENT DIVESTMENT DIVESTMENT ▪ 39 Edmundson Street (Napier) settled 8 July 2022 INVESTMENT PROPERTIES & $2,187.6m -$5.3m▼ -$2.3m▼ -$14.7m▼ $2,165.3m AHFS ▪ 330 Devon Street East (New Plymouth) s
Slide 36: Review & Questions
Slide 37: Questions?
Review & Interim Questions Results Briefing 2022 HIGHLIGHTS: CLOSING: ▪ Stable operating result ▪ “Our proactive capital management is providing us with the balance sheet to ▪ Portfolio delivering strong rental growth execute on a growing portfolio of brownfield ▪ Resilient industrial portfolio of s
Slide 38: Disclaimer
Disclaimer Interim Results Briefing 2022 The information included in this presentation is provided as at 22 August 2022 and should be read in conjunction with the NZX results announcement, NZX Form – Results Announcement and NZX Form – Distribution Notice issued on that same day. Property for Indust
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