Property for Industry Limited · NZX:PFI
Property for Industry — Shareholder Meeting (May 2012)
27 slides from Property for Industry's shareholder meeting presentation, May 18, 2012
Slide 1: Welcome to the PFI Annual Meeting 2012
WELCOME TO THE PFI ANNUAL MEETING 2012
Slide 2: Agenda
AGENDA 1. Board and management team addresses 2. Shareholder questions and answers 3. Financial statements and auditor’s report 4. Ordinary resolutions: – That Anthony Beverley be re-elected – That Gregory Reidy be re-elected – To authorise the board to fix the fees of the auditors, BDO Auckland 5.
Slide 3: 2011 Overview
2011 OVERVIEW Challenges of reduced rentals, higher finance costs and higher taxes for PFI Rentals – 5.3% Direct and indirect expenses – 17.8% Interest costs + 2.7% Taxation + 55.5% Distributable profit – 13.3%
Slide 4: 2011 Overview (continued)
2011 OVERVIEW Continued Consistent net dividend: 7.175 cents per share Positive portfolio revaluation + 1% Three properties sold for $12.85 million Gearing at 28.6%, down from 30.9% at the end of 2010 NTA per share steady at $1.08 Strong performance from industrial property as an asset c
Slide 5: 2012 First-Quarter Results
2012 FIRST-QUARTER RESULTS Rentals –4.9% Most expenses (including interest) in line Distributable profit –8.0% Steady net dividend
Slide 6: Dividend Growth 2000–2011
DIVIDEND GROWTH 2000–2011 PFI vs NZ Listed Property Sector PFI 1400 NZ LPV (weighted ave) 1200 1000 800 600 400 rebased to 1000 Forsyth Barr 0 Mar 2000 Mar 2001 Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011
Slide 7: Ten-Year Share Price & Index Performance
TEN-YEAR SHARE PRICE & INDEX PERFORMANCE PFI vs NZX 50 and NZX Property PFI 3000 NZX Prop Gross w/lmp NZX50 Gross w/lmp 2200 1400 600 rebased to 1000 Forsyth Barr Assumes dividends 0 Mar 2002 Nov 2002 Jul 2003 Mar 2004 Nov 2004 Jul 2005 Mar 2006 Nov 2006 Jul 2007 Mar 2008 Nov 2008 Jul 2009 Mar 2010
Slide 8: Overview of New Manager
OVERVIEW OF NEW MANAGER Greg Reidy, Director representing the manager
Slide 9: Overview of New Manager
OVERVIEW OF NEW MANAGER Background to PFIM Limited Relevant experience Key personnel Compatibility and synergies
Slide 10: Slide 10
Slide 11: Strategy
STRATEGY Property For Industry – dedicated industrial fund Focus on cash returns to shareholders Work closely with existing and new tenants to meet their needs Collect the rent Deal with current vacancy and upcoming expiries Recycle capital and deploy debt capacity into accretive core in
Slide 12: General Manager's Presentation
GENERAL MANAGER’S PRESENTATION Nick Cobham, General Manager
Slide 13: New Leases and Retentions
NEW LEASES AND RETENTIONS Seven new leases this year All new tenants to PFI Lease terms all 8 years or more Three retentions with average term 8 years New leases and retentions equate to 13% of portfolio area
Slide 14: Lease Expiry Profile December 2011
LEASE EXPIRY PROFILE 31 December 2011 20% By rent roll 18% 19.1% 17.8% 16% 14% 13.6% 12% 12.4% 10% 8% 8.9% 9.0% 7.4% 6% 6.3% 4% 3.8% 2% 1.3% 0.4% 0% Vacant 2012 2013 2014 2015 2016 2017 2018 2019 2020 Onwards
Slide 15: Lease Expiry Profile Now
LEASE EXPIRY PROFILE Now 20% By rent roll 18% 19.1% 16% 16.3% 14% 14.8% 12% 12.4% 12.0% 10% 8% 8.8% 8.6% 6% 4% 3.8% 2% 1.3% 1.7% 0% 1.0% Vacant 2012 2013 2014 2015 2016 2017 2018 2019 2020 Onwards
Slide 16: Development
DEVELOPMENT Seaview Business Park, Lower Hutt
Slide 17: Criteria for Core Properties
CRITERIA FOR CORE PROPERTIES Large medium to high stud warehouses Office/warehouse ratio Yard/circulation Site coverage Low capital expenditure Location, including transport links Long term leases Single occupiers Lease covenant
Slide 18: Rent Reviews
RENT REVIEWS Market rents – negligible growth Continued growth from fixed or indexed-linked rent reviews Certainty and transparency for tenants, smoother growth over lease term for PFI 40 rent reviews on $10.93 million of contract rent in 2012 10 reviews complete, total rent increase of 2.
Slide 19: Progress Snapshot
PROGRESS SNAPSHOT 31 March 2011 31 Dec 2011 31 March 2012 Number of properties 52 49 49 Number of tenants 100 89 91 Contract rent $31.6 million $30.2 million $30.6 million Occupancy 99.4% 95.6% 96.2% Weighted average lease term (WALT) 3.84 years 4.17 years 4.34 years
Slide 20: Property Market Overview
CBRE Dec 2011 Jun 2011 Dec 2010 Jun 2010 Dec 2009 Jun 2009 Dec 2008 Jun 2008 Dec 2007 Jun 2007 Dec 2006 Jun 2006 Dec 2005 PROPERTY MARKET OVERVIEW Jun 2005 Dec 2004 Jun 2004 Dec 2003 Jun 2003 Dec 2002 Jun 2002 Comparative Vacancy Trends Dec 2001 Jun 2001 Dec 2000 14% 12% 10% 8% 6% 4% 2% 0% Auckland
Slide 21: Property Market Overview
PROPERTY MARKET OVERVIEW 2011 Demand 120,000 100,000 80,000 sqm 60,000 40,000 20,000 CBRE 0 Auck CBD Office Auck Non CBD Auck Industrial Auck Retail Centre Wgnt CBD Office
Slide 22: Property Market Overview
PROPERTY MARKET OVERVIEW Auckland Comparative Rentals Prime industrial 400 Prime office 350 300 Rate $ per sqm 250 200 150 100 CBRE 50 Mar 2000 Mar 2001 Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011 Mar 2012
Slide 23: Ordinary Resolutions
ORDINARY RESOLUTIONS
Slide 24: Resolution 1
RESOLUTION 1 That Anthony Beverley be re-elected as a director of the Company.
Slide 25: Resolution 2
RESOLUTION 2 That Gregory Reidy be re-elected as a director of the Company
Slide 26: Resolution 3
RESOLUTION 3 That the directors are authorised to fix the fees and expenses of the auditors, BDO Auckland.
Slide 27: Important Note
IMPORTANT NOTE The information included in this presentation is provided as at 18 May 2012. Neither Property For Industry Limited (PFI) nor PFIM Limited (PFIM), the manager of PFI, guarantee the repayment of capital or the performance referred to in this presentation. Past performance is not a relia
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