Stride Property Group · NZX:SPG
Stride Property — H1 FY2018 Earnings Presentation
28 slides from Stride Property's earnings presentation, Nov 23, 2017
Slide 1: Stride Property Group (NS) Interim Results
Stride Property Group (NS) Interim Results For the six months ended 30 September 2017 23 November 2017
Slide 2: Agenda & Contents
Agenda & Contents Page Welcome Philip Littlewood – Chief Executive Officer Highlights 3 Financial Performance 6 Jennifer Whooley – Chief Financial Officer Capital Management 11 Portfolio Overview 13 Development Project 18 Philip Littlewood – Chief Executive Officer REIM Business 20 Conclusion 23 App
Slide 3: Highlights
Highlights Stride Property Group (NS)- Interim Results for the six months ended 30 September 2017
Slide 4: Highlights: Financial Performance
Highlights Financial Performance • • • • • • • • • Targeted cash Distributable dividend for FY18 profit after income tax Growth of REIM Business (combined) + 5.8% 9.91cps 4
Slide 5: Highlights: Portfolio
Highlights Portfolio • Net property • • valuation increase • • +1.7% • • • • Post 30 Sep 17 New development - Developments and Divestments Waste Management • at Springs Road • Post 30 Sep 17 • Post 30 Sep 17 Divestments – three Bunnings properties sold to Investore 5
Slide 6: Financial Performance
Financial Performance Stride Property Group (NS)- Interim Results for the six months ended 30 September 2017
Slide 7: Financial Performance - Consolidated
Financial Performance Stride Property Group - Consolidated Actual Actual Change 30 Sep 17 30 Sep 16 $m $m $m % 28.7 29.5 6.5 2.3 (6.2) (9.1) Profit before net finance expenses, other income and income tax 28.9 22.6 6.3 27.8 (8.2) (8.6) Profit before other income and income tax (refer Appendix 1) 20.
Slide 8: Distributable Profit - Consolidated
Distributable Profit Stride Property Group - Consolidated Change Actual Actual 30 Sep 17 30 Sep 16 $m $m $m % 38.8 30.0 (14.4) (11.6) (2.5) (0.6) 2.2 0.0 (0.2) (0.3) 0.2 0.2 0.0 0.3 0.0 3.1 0.3 1.2 Distributable profit before income tax 24.5 22.3 2.2 10.0 (4.7) (3.6) Distributable profit after incom
Slide 9: AFFO Distributable Profit - Consolidated
AFFO Distributable Profit Stride Property Group - Consolidated Change Actual Actual 30 Sep 17 30 Sep 16 $m $m $m % Distributable profit after income tax 19.7 18.7 1.1 5.8 (2.7) (2.7) Adjusted Funds From Operations (AFFO) 17.1 16.0 1.1 7.1 AFFO basic distributable profit after income tax per share -
Slide 10: Financial Summary - Consolidated
Financial Summary Stride Property Group - Consolidated Actual Actual 30 Sep 17 31 Mar 17 $m $m 10
Slide 11: Capital Management
Capital Management Stride Property Group (NS)- Interim Results for the six months ended 30 September 2017
Slide 12: Capital Management
Capital Management Stride Property Limited As at As at 30 Sep 17 30 Sep 17 Covenant $400m 38.8%1 $356.6m 2.97x 2.7 years 4.8 years 4.46% 3.92% 2.7 years 56% 12
Slide 13: Portfolio Overview
Portfolio Overview Stride Property Group (NS)- Interim Results for the six months ended 30 September 2017
Slide 14: Portfolio Overview
Portfolio Overview Stride Property Limited Top Ten Tenants1 by Contract Rental2 Lease Expiry Profile3 by Contract Rental2 As at As at Overview 30 Sept 17 31 Mar 17 0% 2% 4% 6% 8% 10% 0% 5% 10% 15% 20% 29 2018 Bunnings 382 2019 General Distributors 2020 304,850 2021 ASB 2022 4.9 Fletchers 2023 98.2%
Slide 15: Major Lease Transactions Completed
Major Lease Transactions Completed Stride Property Limited Annual Contract Term Rental Tenant Property Commencement Area (m2) (years) ($000) SIML completed 92 lease transactions as managed for Stride Property Limited during the six month period ended 30 September 17: • • • Stride Property Limited —
Slide 16: Remaining Lease Expiries FY18 & FY19
Remaining Lease Expiries FY18 & FY19 Stride Property Limited FY18 Net Lettable % of Property Tenant Area (m2) Contract Rental 28,673 6.38 As at 30 Sep 17, 6.38% of Contract Rental expiries remain in FY18 (10.21% as at 31 Mar 17). Post 30 Sep 17 – Lion has vacated 11 Springs Road, Auckland, and Strid
Slide 17: Portfolio Occupancy 98.2%
Portfolio Occupancy1 98.2% Stride Property Limited Occupancy (%) Vacancy (m2) Total Area (m2) Occupancy (%) Property 30 Sep 17 30 Sep 17 30 Sep 17 31 Mar 17 97.9 100.0 Office Total 99.8 86 48,646 99.8 78.4 100.0 Industrial Total 97.6 2,670 113,293 94.1 97.1 93.9 99.0 100.0 98.2 84.7 Retail Total 97.
Slide 18: Development Project
Development Project Stride Property Group (NS)- Interim Results for the six months ended 30 September 2017
Slide 19: 15 Rockridge Avenue, Auckland
15 Rockridge Avenue, Auckland • • • 19
Slide 20: REIM Business
REIM Business Stride Property Group (NS)- Interim Results for the six months ended 30 September 2017
Slide 21: Investment Management Income
Investment Management Income • Forecast FY18 REIM fee income growth of +43.3% to $18.8m • Forecast FY18 margin of approximately 35%-45% on REIM fee income Represents total SIML management fee income including Stride, which is eliminated on consolidation in the consolidated financial statements for F
Slide 22: Stride Property Group Revenue
Stride Property Group Revenue Actively manage to improve returns, Strategic alignment via holdings in Two external funds, 43 assets build property portfolios for new funds managed funds $919m1, 29 assets $85.3m2 invested in funds $1.2b managed AUM 66% of 11% of 23% of total total total revenue3 reve
Slide 23: Conclusion
Conclusion Stride Property Group (NS)- Interim Results for the six months ended 30 September 2017
Slide 24: Conclusion
Conclusion Execution of Strategy Portfolio repositioning and REIM growth • • • Development activity • • 9.91cps combined Stride Property Group cash dividend targeted for FY18 Targeted cash Portfolio dividend for FY18 Development repositioning and (combined) activity REIM growth 9.91cps 24
Slide 25: Appendix
Appendix Stride Property Group (NS)- Interim Results for the six months ended 30 September 2017
Slide 26: Appendix 1
Appendix 1 Stride Property Limited — Annual Results Presentation for the year ended 30 September 2015 – 12 November 2015 26 26
Slide 27: Appendix 1
Appendix 1 Stride Property Limited — Annual Results Presentation for the year ended 30 September 2015 – 12 November 2015 27 27
Slide 28: 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 six months ended 3
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