Investore Property Ltd. · NZX:IPL
Investore Property — H1 FY2025 Earnings Presentation
25 slides from Investore Property's earnings presentation, Nov 14, 2024
Slide 1: Interim Results Presentation
Interim Results Presentation For the six months ended 30 September 2024 14 November 2024
Slide 2: Contents
Contents Financial overview 03 Key metrics 04 Portfolio 06 Sustainability 11 Financial performance 13 Capital management 17 Looking ahead 20 Appendices 22 Investore Property Limited | HY25 Interim Results Presentation 2
Slide 3: Financial overview
Financial overview For the 6 months ended 30 Sep 24 (HY25) Profit before other expense and income tax $17.1m down $(0.5)m from HY24 driven by higher finance expenses Profit after income tax $9.7m up from HY24 loss after income tax of $(66.5)m due to a smaller net reduction in fair value of investmen
Slide 4: Portfolio metrics and capital management
Mitre 10 MEGA, Botany Portfolio metrics Capital management $1.0bn 6.63% 4.5% 41.6% Portfolio valuation1 Initial yield2 Weighted average Loan to Value Ratio4 a net reduction in fair value of (0.3)% or as at 30 Sep 24 $(3.4)m over 6 months to 30 Sep 24 cost of debt as at 30 Sep 24 as at 30 Sep 24 7.0
Slide 5: Improving our portfolio
Improving our portfolio During HY25, Investore entered into unconditional agreements to sell two regional, non-core supermarket properties for a combined sale price of $54.3m and to acquire Bunnings Westgate, Auckland, for $51.0m1 Strategic outcomes: • Exposure to a rapidly growing area of Auckland,
Slide 6: Portfolio
Portfolio Woolworths, Greenlane Investore Property Limited | HY25 Interim Results Presentation 6
Slide 7: Portfolio summary
Portfolio summary Investment portfolio metrics Key portfolio activity As at As at • Unconditional agreements entered into to dispose 30 Sep 241 31 Mar 244 of two non-core, regional properties and to acquire Bunnings Westgate Investment portfolio value2 ($m) 916 972 • Completion of online expansion w
Slide 8: Long dated lease expiry profile
Long dated lease expiry profile Lease Expiry Profile3 by Contract Rental2 Long portfolio WALT1 of 7.0 years, As at 30 Sep 24 26.4% with 79% of Contract Rental1,2 expiring in FY30 or beyond WALT 7.0 years FY25 3.7% Contract Rental expiring: 20.6% • Woolworths at Maidstone (1.2%) • Woolworths at Onehu
Slide 9: Key tenants meeting daily needs
Key tenants meeting daily needs Investore's portfolio consists of quality, well-located large format retail properties with tenants that attract regular visitation, including supermarkets, hardware stores, general merchandise and health & wellbeing, enhancing the portfolio's resilience Everyday Need
Slide 10: Geographically diversified portfolio
Geographically diversified portfolio Investore’s portfolio is geographically diversified across New Zealand with the majority of the portfolio located in highly populated urban areas such as Auckland, Wellington, Canterbury, Waikato and the Bay of Plenty. The unconditional disposals and acquisition
Slide 11: Sustainability
Sustainability Woolworths, Waimakariri Junction Investore Property Limited | HY25 Interim Results Presentation 11
Slide 12: Sustainability
Sustainability Investore continues to focus on reducing its scope 1 and 2 greenhouse gas emissions: • Continued programme of replacing air conditioning units that use R22 refrigerant with a low global warming potential alternative • Audit of carpark lighting in progress to identify those that may re
Slide 13: Financial Performance
Financial Performance Mitre 10 MEGA, Botany Investore Property Limited | HY25 Interim Results Presentation 13
Slide 14: Financial performance
Financial performance Change 30 Sep 24 30 Sep 23 $m $m $m % Net rental income 31.2 30.4 +0.8 +2.7 Corporate expenses (3.9) (4.1) +0.3 +6.0 Profit before net finance expense, other expense and income tax 27.3 26.2 +1.1 +4.1 Net finance expense (10.2) (8.6) (1.5) (17.9) Profit before other expense and
Slide 15: Distributable profit
Distributable profit 1 Change 30 Sep 24 30 Sep 23 $m $m $m % Profit/(loss) before income tax 13.5 (65.1) +78.6 +120.8 Non-recurring, non-cash items, and other adjustments: - Net change in fair value of investment properties 3.5 82.7 (79.3) (95.8) - Borrowings establishment costs amortisation 0.4 0.5
Slide 16: Financial summary
Financial summary As at As at 30 Sep 24 31 Mar 24 Change Investment property value ($m)1 993.7 989.4 +4.3 Drawn debt ($m) (411.3) (402.8) +8.5 Loan to Value Ratio (LVR)2 41.6% 40.8% +0.8% Equity ($m) 583.9 587.1 (3.1) Shares on issue (millions) 373.8 373.8 - Net Tangible Assets (NTA) per share $1.56
Slide 17: Capital Management
Capital Management Bunnings, Westgate Investore Property Limited | HY25 Interim Results Presentation 17
Slide 18: Proactive capital management
Proactive capital management • 41.6% LVR1 as at 30 Sep 24, or 41.9% on a committed Pro forma2 As at As at basis2 Debt facilities 30 Sep 24 30 Sep 24 31 Mar 24 • $100m IPL010 bond matured Apr 24, repaid with bank debt facilities Debt facilities limit (ANZ, CCB, ICBC, Westpac), $475m $475m $575m • Ref
Slide 19: Hedging and cost of debt
Hedging and cost of debt As at As at Cost of debt 30 Sep 24 31 Mar 24 • As at 30 Sep 24, 68% of drawn debt is hedged or subject to a fixed interest rate, or 67% on a pro forma basis1 Weighted average cost of debt (incl. current interest rate derivatives, • Weighted average cost of debt as at 30 Sep
Slide 20: Looking Ahead
Looking Ahead Woolworths, Browns Bay Investore Property Limited | HY25 Interim Results Presentation 20
Slide 21: Looking ahead
Looking ahead • While macroeconomic conditions remain challenging, Investore’s underlying portfolio metrics remain resilient, with a defensive rental income stream from non-discretionary, everyday needs retail tenants supported by proactive capital management and a strong hedging outlook • Property
Slide 22: Appendices
Appendices Mt Wellington Night Market Investore Property Limited | HY25 Interim Results Presentation 22
Slide 23: Appendix A
Appendix A Profit before other expense and income tax $0.7m $0.2m $(0.1)m $0.2m $0.1m $17.6m $(1.5)m $17.1m 30 Sep 23 Net rental increase Net rental decrease Net rental increase Higher net finance Lower management Lower administration 30 Sep 24 from development and from existing portfolio from IFRS
Slide 24: Appendix B
Appendix B Net Contract Rental1 $0.4m $0.4m $3.2m $(0.1)m $(3.6)m $63.7m $63.9m $60.8m As at Renewals / Rent reviews Other Properties classified As at Unconditional Pro-forma 31 Mar 24 new lettings as asset held for sale 30 Sep 24 acquisition of Bunnings Westgate Investment Properties (excl. lease l
Slide 25: Thank you
Thank you Level 12, 34 Shortland Street Auckland 1010, New Zealand PO Box 6320, Victoria Street West, Auckland 1142, New Zealand P +64 9 912 2690 W investoreproperty.co.nz Important Notice: The information in this presentation is an overview and does not contain all information necessary to make an