Stride Property Group · NZX:SPG
Stride Property — Shareholder Meeting (September 2017)
36 slides from Stride Property's shareholder meeting presentation, Sep 6, 2017
Slide 1: Stride Property Group Annual Meetings
Stride Property Group (NS) Annual Meetings 6 September 2017
Slide 2: Agenda
Agenda A. Chairman’s Address Tim Storey – Chairman Philip Littlewood – Chief B. Chief Executive’s Address Executive C. Financial Statements Tim Storey – Chairman D. Ordinary Resolution for Stride Property Limited Tim Storey – Chairman E. Ordinary Resolutions for Stride Investment Management Limited
Slide 3: A. Chairman's Address – Tim Storey
A. Chairman’s Address – Tim Storey Stride Property Group - Annual Meetings – 6 September 2017 3
Slide 4: Results
Results • Stride Property Group1 listed on the NZX Main Board on 12 July 2016 • Demerger of Investore Property Limited and retention of 19.9% shareholding • Growth of real estate investment management (REIM) business Stride Property Demerger of Growth of REIM Group Investore Business NZX listing 19.
Slide 5: Stride Property Group
Stride Property Group • Grow its real estate management business • Develop new opportunities for potential property sector investments • Leverage the specialist expertise Stride Property Group has developed Growth of REIM Develop new Leverage Business opportunities Specialist expertise Stride Proper
Slide 6: Highlights
Highlights (Compared to Prospective Financial Information for FY17 set out in the Explanatory Memorandum dated 10 June 2016 (PFI) figures in brackets) • Profit after income tax of $56.9m ($31.0m) • Distributable profit1 after income tax of $37.7m ($37.2m) • Combined 9.96cps cash dividend for Stride
Slide 7: Stride Property Group
Stride Property Group • Stride Property Limited invests in quality NZ property investments • Stride Investment Management Limited is a specialist real estate investment manager STRIDE SIML Invests in quality Specialist real New Zealand estate investment property investments manager Stride Property G
Slide 8: Vision
Vision To build New Zealand’s best performing listed property investment and management company that invests in the best places, is managed by the best team and, most importantly, delivers the best performance Stride Property Group - Annual Meetings – 6 September 2017 8
Slide 9: Dividends – Q1 FY18
Dividends – Q1 FY18 • Stride Property Limited – cash dividend of 2.07cps for Q1 FY18 • Stride Investment Management Limited – cash dividend of 0.41cps for Q1 FY18 • Combined 2.48cps cash dividend for Stride Property Group for Q1 FY18 • Targeting a combined 9.91cps cash dividend for Stride Property G
Slide 10: B. Chief Executive's Address – Philip Littlewood
B. Chief Executive’s Address – Philip Littlewood Stride Property Group - Annual Meetings – 6 September 2017 10
Slide 11: Total Shareholder Return
Total Shareholder Return 2.10 2.00 SPG +16.6% p.a. 1.90 Total shareholder return (indexed to 1) 1.80 1.70 1.60 1.50 1.40 1.30 1.20 NZX Property Gross Index 1.10 13.4% p.a. 1.00 0.90 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Source: Datastream, Goldman
Slide 12: Strategic Pillars
Strategy Purpose Stride Property Group invests in and manages portfolios of places that attract the highest demand and delivers market leading returns to shareholders Vision Stride has the best people investing in and managing the best places to deliver the best performance in the NZ property market
Slide 13: Managed Portfolios
Managed Portfolios Wholly owned portfolio Investment Management $895m, 29 assets $660m, 39 assets $523m, 4 assets Office, 27% 100% 100% Retail, Large Shopping 47% Format centres Retail Industrial, 17% Standalone Large 19.9% shareholding 2% investment Format Retail, 9% held by Stride held by Stride S
Slide 14: Stride Operating Revenue
Stride Operating Revenue Wholly owned portfolio Co-investments Investment management Actively manage to improve returns, Strategic alignment holdings in Two external funds, 43 assets build property portfolios for new funds managed funds $895m, 29 assets $85.3m1 invested in funds $1.2b managed AUM 74
Slide 15: Clear Strategy for Investment Management
Clear Strategy for Investment Management Sustainable, high performing, single sector focussed product Single sector mandate Cornerstone holding by Stride Property Stride Property is committed to hold single sector assets through Investore Capital structure designed specifically for this sect
Slide 16: Investment Management Income
Investment Management Income Significant growth in our investment management business delivering high margin returns $18.8m $5.7m (+43%) $13.1m $11.3m (+619%) $0.4m (+24%) $1.5m $1.8m FY15 FY16 FY17 FY18F (PFI) • Forecast FY18 REIM fee income growth of +43.3% to $18.8m • Forecast FY18 margin of appr
Slide 17: Stride's Wholly Owned Portfolio
Stride’s Wholly Owned Portfolio Active management 31 March 2017 31 March 2016 Change Leasing transactions 270 200 +70 Retention rate on renewal & new 78% 57% +21% lettings Like-for-like rental growth 2.9% 2.7% +0.3% Portfolio statistics At 31 March 2017 At 31 May 2016 (PFI) Portfolio Value $895m1 $8
Slide 18: Office Portfolio - $215 million
Office Portfolio - $215 million A quality office portfolio providing diversification in location, asset class and income Location (by value) Asset Class (by value) Tenant Type (by gross rental) Other, 6% Government, 14% Prime, Retail, 11% Legal, 15% financial & Wellington, IT & insurance, 46% teleco
Slide 19: Industrial Portfolio - $182 million
Industrial Portfolio - $182 million Well positioned to capture higher rentals in the sought after Auckland market Location (by value) Developer (by value) Tenant Type (by gross rental) Other, 5% Stride developed Logistics, Auckland, , 37% 17% 100% Wholesale Trade, 11% Non-Stride, Manufacturing, 63%
Slide 20: 15 Rockridge Avenue, Auckland
15 Rockridge Avenue, Auckland • 8,100 m2 of modern industrial building on a site of 1.23 ha • $16.5m development part of $83m multi-stage redevelopment project • Anticipated completion Q4 FY18 Stride Property Group - Annual Meetings – 6 September 2017 20
Slide 21: Retail Portfolio - $495 million
Retail Portfolio - $495 million Standalone large format retail Retail centres Location (by value) Location (by value) Developer (by value) Wellington, 7% Tauranga, Palmerston 10% Non-Stride North, 17% developed, Hamilton, 38% 22% Rotorua, 19% Stride developed, 62% Auckland, 42% Auckland, 83% • 93% o
Slide 22: NorthWest Stage Two Development
NorthWest Stage Two Development • Opened October 2016 • 7,700m2 of contemporary office, dining and retail space • Total annual sales for NorthWest Shopping Centre and Stage Two up +41% to July 2017 • Like-for-like sales +14.1% for NorthWest Shopping Centre for three months to July 2017 Stride Proper
Slide 23: Capital Management
Capital Management • Stride Property Limited – drawn debt of $347.5 million as at 31 March 2017 • Interest rate hedging at 75% of drawn bank borrowings as at 31 March 2017 • Loan to Value Ratio (Bank Debt / Property Values) of 38.8% as at 31 March 2017 at lower end of target range of 38% – 42% % of
Slide 24: Total Dividend Per Share Growth
Total Dividend Per Share1 Growth Dividends per share up +9.6% over two years 0.48 cps 0.55 cps 11.78 cps 11.30 cps 10.75 cps FY16 Actual FY17 Actual FY18 Forecast 1 Total dividend per share is calculated by adding together 100% of the Stride and SIML dividend per share amounts, and 25% of the Invest
Slide 25: C. Financial Statements
C. Financial Statements Stride Property Group - Annual Meetings – 6 September 2017 25
Slide 26: Financial Statements – Q&A
Financial Statements – Q&A Questions on Stride Property Group financial statements for the year ended 31 March 2017? Stride Property Group - Annual Meetings – 6 September 2017 26
Slide 27: D. Ordinary Resolution – Stride Property Limited
D. Ordinary Resolution – Stride Property Limited Stride Property Group - Annual Meetings – 6 September 2017 27
Slide 28: Resolution – Auditor's Remuneration
Resolution 1 Resolution 1 – Auditor’s Remuneration “That the Directors be authorised to fix the remuneration of PricewaterhouseCoopers as auditor, for the ensuing year.” Stride Property Group - Annual Meetings – 6 September 2017 28
Slide 29: E. Ordinary Resolutions – Stride Investment Management Limited
E. Ordinary Resolutions – Stride Investment Management Limited Stride Property Group - Annual Meetings – 6 September 2017 29
Slide 30: Resolution – Auditor's Remuneration
Resolution 1 Resolution 1 – Auditor’s Remuneration “That the Directors be authorised to fix the remuneration of PricewaterhouseCoopers as auditor, for the ensuing year.” Stride Property Group - Annual Meetings – 6 September 2017 30
Slide 31: Resolution – Re-election of director
Resolution 2 Resolution 2 – Re-election of director “That Michelle Tierney be re-elected as a Director of Stride Investment Management Limited, pursuant to clause 22.3 of the constitution.” Stride Property Group - Annual Meetings – 6 September 2017 31
Slide 32: Resolution – Re-election of director
Resolution 3 Resolution 3 – Re-election of director “That Tim Storey be re-elected as a Director of Stride Investment Management Limited, pursuant to clause 22.3 of the constitution.” Stride Property Group - Annual Meetings – 6 September 2017 32
Slide 33: Resolution – Appointment of director
Resolution 4 Resolution 4 – Appointment of director “That Philip Ling, who was appointed as a Director of Stride Investment Management Limited on 26 June 2017, be elected as a Director of Stride Investment Management Limited, pursuant to clause 22.3 of the constitution.” Stride Property Group - Annu
Slide 34: Resolution – Directors Remuneration
Resolution 5 Resolution 5 – Directors Remuneration “That, with effect from 1 September 2017, the aggregate Directors’ fee pool for Stride Investment Management Limited, pursuant to Listing Rule 3.5.1(a), be increased by $50,000 from $710,000 to $760,000.” Stride Property Group - Annual Meetings – 6
Slide 35: F. General Business
F. General Business Stride Property Group - Annual Meetings – 6 September 2017 35
Slide 36: Thank You
Thank You Important Notice: The information in this presentation is an overview and does not contain all information necessary to make an investment decision. It is intended to constitute a summary of certain information relating to the performance of Stride Property Group for the year ended 31 Marc
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