Property For Industry Limited · NZX:PFI
Property For Industry — FY2021 Earnings Presentation
37 slides from Property For Industry's earnings presentation, Feb 21, 2022
Slide 1: 2021 Annual Results Briefing
2021 ANNUAL SULTS BRIEFING
Slide 2: Agenda
HIGHLIGHTS4.% PORTFOLIO Ss 2021 ANNUAL RESUL CAPITAL MANAGEMENT ESG MARKET OUR PRIORITIES REVIEW & QUESTIONS
Slide 3: 01. Highlights
Slide 4: Highlights
Highlights Annual Results Briefing 2021 STRONG BALANCE SHEET: Net tangible assets up 37.3% to 303.4 cents per share, gearing of 27.7%, all bank facilities refinanced during the year and increased by $125 million, over $120 million of available liquidity REFRESHED STRATEGY PROGRESSED Refreshed strate
Slide 5: Portfolio
Portfolio Annual si Results Briefing
Slide 6: Portfolio Snapshot
Portfolio Annual Snapshot Results Briefing 2021 ▪ PFI's portfolio is diversified across 97 properties DECEMBER 2021 DECEMBER 2020 and 136 tenants, with 100.0% occupancy and a weighted average lease term of 5.40 years, BOOK VALUE $2,168.9m $1,631.5m weighted towards Auckland industrial property NUMBE
Slide 7: Valuations
Valuations Annual Results Briefing 2021 7
Slide 8: Leasing
Leasing Annual Results Briefing 2021 8
Slide 9: 2022 Lease Expiries
2022 Lease Annual Expiries Results Briefing 2021 ▪ Portfolio is 100.0% occupied and 6.4% of contract rent is due to expire in 2022 (graph below), largest single expiry 28.7% of that (1.8% of contract rent, graph on right) − 48 Seaview Road has been sold with settlement due to take place in March 202
Slide 10: Rent Reviews
Rent Annual Reviews Results Briefing 2021 ▪ 114 rent reviews delivered an average annual uplift of ~3.5% on Market 4.1% ~$66.5 million of contract rent Expiry 6.4% − 10 market rent reviews delivered an annualised increase of No event 24.9% 2.3% over an average review period of 5.0 years on $4.9 mill
Slide 11: Results
Results Results Briefing . oC Bie 2021 Annual———_|_ Annual 2021 2021 ANNUAL RESULTS
Slide 12: Net Rental Income
Net Rental Annual Income Results Briefing 2021 $98m ▪ Net rental income of $94.3 +2.3 million up $10.1 million or 12.0% $96m on the prior ($84.2 million) +2.7 -1.0 94.3 $94m -0.7 -0.5 ▪ Increases due to significant -0.0 $92m +7.3 acquisition activity totalling +$7.3 million and positive $90m leasing
Slide 13: Adjusted Funds From Operations
Adjusted Annual Funds From Results Operations Briefing (cents per share) 2021 11.0 ▪ Profit after tax of $452.8 million 10.5 +0.16 ▪ AFFO earnings of 9.29 cents +2.23 per share, 1.26 cents per share 10.0 or 15.7% ahead of the prior -0.40 year 9.5 -0.37 9.29 ▪ Net rental income (including -0.19 9.0 -
Slide 14: Earnings, Dividends, Guidance
Earnings, Annual Dividends, Results Guidance Briefing 2021 ▪ 2021 cash dividends total 7.90 cents per share EARNINGS 2021 CPS 2020 CPS CHANGE (cps), up 0.20 cps of 2.6% from 2020, dividend reinvestment scheme in place for Q1-Q3 2021 FUNDS FROM OPERATIONS 11.07 9.67 +1.40 CPS or +14.4% dividends, 2%
Slide 15: Investment Properties
Investment Annual Properties Results Briefing 2021 ▪ Portfolio value of $2.169 billion, $2,400m including 48 Seaview Road (due to settle March 2022), which is $2,300m +226.3 +20.3 +5.0 classified as held for sale (AHFS) $2,200m 2,168.9 ▪ Increase from annual -106.7 $2,100m independent valuations of
Slide 16: Net Tangible Assets (cents per share)
Net Tangible Annual Assets Results (cents per share) Briefing 2021 320 ▪ Net tangible assets (NTA) per share increased by 82.5 cents +2.4 +1.6 +0.2 303.4 per share or 37.3% +2.4 300 +77.7 ▪ Change in NTA per share driven by the increase in the fair value of investment properties (+77.7 280 cps), a d
Slide 17: Capital Management
Annual Results Briefing + 2021 - CAPITAL MANAGEMENT
Slide 18: Funding, Covenants, Interest Rates
Funding, Annual Covenants, Results Interest Briefing Rates 2021 ▪ $100 million CBA liquidity facility increased DECEMBER 2021 DECEMBER 2020 to $125 million and extended in April 2021 FUNDING ▪ $300 million syndicated facilities refinanced BANK FACILITIES DRAWN $401.2m $289.9m in July 2021, with an a
Slide 19: Debt Facility Maturity Profile, Hedging
Debt Facility Annual Maturity Results Profile, Briefing Hedging 2021 300 250 ▪ Average term to expiry of bank 200 facilities and bonds (top graph) 150.0 150 of ~3.9 years, $123.8 million of unutilised bank facility capacity 100 150.0 125.0 ▪ Fixed rate payer hedging profile 50 100.0 100.0 100.0 (bot
Slide 20: ESG
Interim Results Briefing 2019
Slide 21: Environmental, Social and Governance (ESG)
Environmental, Annual Social and Results Governance Briefing (ESG) 2021 2021 SUSTAINABILITY HIGHLIGHTS Strategic themes: Taking care of our team – Looking after our tenants – Responsible property ownership – Delivering for investors ▪ Replaced HVAC systems containing ozone- ▪ Provided our team, tena
Slide 22: Sustainable Refurbishment Case Study
Sustainable Annual Refurbishment Results Case Study Briefing 2021 ▪ Recycling or reuse of construction and demolition waste ▪ Replacement of ozone-depleting R22 air- conditioning units ▪ Landscaping that employs sustainable design, planting and maintenance practices ▪ New energy efficient LED lighti
Slide 23: 06. Market
Slide 24: Market Update
Market Annual Update Results Briefing 2021 ▪ E-commerce penetration accelerated by COVID-19 $m NZ Post Total Online Spend2 pandemic, with online spend set to experience 950 further growth (top graph) 850 750 ▪ Online sales in New Zealand expected to grow from the current 11% to 17% (or $9.3Bn) by 20
Slide 25: Our Priorities
Our Priorities Pvt = |ORITIES- <b BAS
Slide 26: Purpose, Vision and Strategy
Purpose Annual Vision and Results Strategy Briefing 2021 26
Slide 27: Looking Forward
Looking Annual Forward Results Briefing 2021 27
Slide 28: Our Portfolio (Target & Current)
Our Portfolio Annual (Target & Current) Results Briefing 2021 28
Slide 29: Core Generic Holdings
Core Annual Generic Results Holdings Briefing 2021 ▪ Purchased for $91.7 million in May 2021 ▪ Large, modern 17,500 sqm warehouse with 2,200 sqm of canopies and 12,250 sqm of yard ▪ Secured a 10-year lease to Cottonsoft from 1 October 2021, with a commencement rental of $3.32 million and 2.5% fixed
Slide 30: Specialised Assets
Specialised Annual Assets Results Briefing 2021 ▪ Purchased for $79.5 million in November 2021 ▪ 15-year triple-net leaseback to NZX-listed tenant T&G Global ▪ The 9.56 hectare site accommodates in excess of 36,000 square metres of T&G’s post-harvest operations and 3.7 hectares of storage yard ▪ Com
Slide 31: Strategic Acquisitions
Strategic Annual Acquisitions Results Briefing 2021 ▪ Purchased in November 2021 for $3.1 million ▪ Purchased in December 2021 for $5.2 million ▪ 5,000 sqm site at 318 Neilson Street, Penrose, acquired for $6.825 million, with settlement ▪ 1,436 sqm site ▪ The ~3,100 sqm site is surrounded by an exp
Slide 32: Brownfield Opportunities
Brownfield Annual Opportunities Results Briefing 2021 ▪ Large 3.9ha site in one of Auckland’s prime industrial locations ▪ Good links to Southern Motorway, dual access from both Bowden Road and Gabador Place ▪ Versatile site that can accommodate large- scale or multiple tenant designs ▪ March 2023 l
Slide 33: Brownfield Opportunities
Brownfield Annual Opportunities Results Briefing 2021 ▪ $224 million or 10% of the portfolio held in brownfield opportunities, providing a growing DECEMBER % OF PROPERTY LETTABLE SITE LEASE pipeline of medium-term development 2021 VALUE AREA(SQM) COVERAGE CONTRACT EXPIRY opportunities ($M) RENT ▪ 47
Slide 34: Assets Held For Sale
Assets Annual Held For Results Sale Briefing 2021 DECEMBER 48SEAVIEW SHED 22 PRO FORMA 2021 DIVESTMENT DIVESTMENT ▪ Carlaw Park divestment settled December 2021 INVESTMENT PROPERTIES & $2,168.9m -$10.0m▼ -$13.7m▼ $2,143.5m AHFS ▪ 48 Seaview Road due to settle February 2022 ▪ Shed 22 seismic strength
Slide 35: 08. Review & Questions
Slide 36: Review & Questions
Review & Annual Questions Results Briefing 2021 CLOSING: ▪ “The Company’s continued focus on HIGHLIGHTS: industrial property has coincided with ▪ Record annual result ongoing investor interest and tenant ▪ Strong balance sheet demand that has enabled us to grow significantly. We are pleased to have
Slide 37: Disclaimer
Disclaimer Annual Results Briefing 2021 The information included in this presentation is provided as at 21 February 2022 and should be read in conjunction with the NZX results announcement, NZX Form – Results Announcement, NZX Form – Distribution Notice, and annual report issued on that same day. Pr