Alina Holdings Plc · LSE:ALNA
Alina — Local Shopping REIT — FY2007 Earnings Presentation
22 slides from Alina's earnings presentation, December 2007
Slide 1: Maiden Preliminary results for the year ended 30 September 2007
Maiden Preliminary results for the year ended 30 September 2007
Slide 2: Our Sector - Overview
Our Sector - Overview • Local Shopping – The Shops you use everyday for your non discretionary spend – Neighbourhood, Convenience, Top up, Traditional, Specialist – Not High street at £75 ZA • Complementary to future trends – Ageing society, congestion charging, sustainability, green issues, car par
Slide 3: Local Shopping REIT plc cont'd: Model
Local Shopping REIT plc cont’d Model • Accretive model – average purchase yield 7.34% (excluding Gilfin) since IPO funding @ 5.69% - 6.0% • Capital growth – Asset management opportunities – Upper parts, reconfigurations, surplus land, ransom strips etc • REIT status to buy CGT pregnant companies • O
Slide 4: Highlights
Highlights Financial results complicated due to first 7 months being a highly geared private company with mezzanine finance at 11.7% • Raising £160 million and admission to the main market • NAV 158.6p * V 164.9p at IPO * including fair value of Barclays fixed rate hedging (£2.96m) • Loss before tax
Slide 5: Highlights cont'd
Highlights cont’d • Portfolio valued at £249.3m, up from £207.7m at IPO • Rent roll now £17.1m, up from £13.8m at IPO • 151 acquisitions since IPO showing a 4% increase over purchase price • Gilfin corporate acquisition for £12.85m – First REIT corporate purchase – 50% cash and shares – Number of sh
Slide 6: Highlights cont'd
Highlights cont’d Very strong financial position • Total debt £98.1million • Current loan to value 40%, gearing 65% • £130m of un-drawn facilities • £37.3m uncharged properties • A business positioned to take advantage of the changing conditions 5
Slide 7: Financial Performance – for the year to 30 September 2007
Financial Performance – for the year to 30 September 2007 Income Statement 30 September 2007 Rental income after property expenses £11.5m Admin expenses £2.2m Interest expense £10.1m 5 months as a public Loss before tax (£4.3m) company with a Loss before tax adjusted for: £0.1m different capital rev
Slide 8: Financial Performance
Financial Performance Balance Sheet 30 September Proforma 2007 Balance Sheet Valuation of portfolio £249.3m £208.3m Outstanding debt (£98.1m) (£106.2m) Net assets £151.8m £158.2m Gearing 64.7% 66.1% Loan to value ratio 39.6% 51.0% Net assets per share 159 pence 165 pence (adjusted for fair value of
Slide 9: Finance – Debt facilities
Finance – Debt facilities Barclays • Amount £69m • Margin 75 bp Key features of both loans • Term 8.75 yrs • Fixed rate loan including margin at 5.6% •No ongoing LTV default Covenants HSBC •Low Interest cover tests • Amount £150m • Margin 60 to 75 bp depending on LTV •Interest only • Term 8.25 yrs •
Slide 10: Portfolio Valuation – £249.3m (as at 30 Sep 2007)
Portfolio Valuation – £249.3m (as at 30 Sep 2007) Capital Value No. of Properties Market Value Equivalent Yield* £0 – £100k 54 £4.6m 7.14% £101 – £200k 222 £34.4m 7.07% £201 – £500k 219 £68.9m 7.02% £501k – £1m 98 £70.3m 6.99% £1 – £3m 34 £50.2m 7.22% £3m + 5 £20.9m 7.16% Total 632 £249.3m 7.08% • R
Slide 11: A Diversified Portfolio
A Diversified Portfolio • 632 properties, 1,976 letting units • Largest tenant: 1.1% of portfolio rent • Largest property: 2.9% of portfolio value Top 5 Tenants (as at 30 sep 2007) Name No. of Units Rent pa % Portfolio Thomas Cook Ltd 13 £186,300 1.1% Somerfield Stores Ltd 2 £128,000 0.7% Coopland &
Slide 12: Regional Spread by Market Rent (as at 30 Sep 2007)
Regional Spread by Market Rent (as at 30 Sep 2007) E Anglia Y&H 5% E Midlands 10% 4% Wales North 5% 6% W Mids NW 7% 9% SW 11% Scotland 15% London & SE 28% • Largest exposure to London and SE where we see good rental and capital growth prospects 11
Slide 13: User Types by Market Rent (as at 30 Sep 2007)
User Types by Market Rent (as at 30 Sep 2007) 0.7% 0.1% 1.0% 0.4% 8.7% A1 – shops 0.5% A2 – financial 5.2% A3 – cafes 5.8% A4 – pubs A5 – take aways 0.1% B1 – offices 9.6% B2 – industrial 58.0% B8 – storage C3 – residential D1 - institutional 10.0% D2 – leisure Misc • Retail: 83.6% • Residential Upp
Slide 14: Affordable Rents
Affordable Rents Average Rents per Tenant Type 30 Thousands pa 25 20 15 10 5 0 Travel Convenience Off Licence Jewellery/Gifts Café Pawnbroker Footwear Dry Cleaner Hairdresser Clothing Optician Pet Shop A3 Furniture/ Homeware A2 Hardware Food Video Hire A5 Laundrette Electrical Discount Chemist Newsa
Slide 15: Portfolio Income (as at 30 Sep 2007)
Portfolio Income (as at 30 Sep 2007) Tenant Grade Lease Expiry Profile Vacant - Deliberate Vacant - Vacant - 0.7% Commercial Residential Government 3.4% National 1.5% 1.4% Multiple Rent 0-3 yr 21.4% Guarantee 25.6% 1.5% 9yr+ 28.0% Regional Multiple Individual 5.6% 52.7% 3-6 yr Local 19.8% Company 6-
Slide 16: Void Rate
Void Rate % of Market Rent March 2007 September 2007 Vacant – Deliberate 0.9% 0.7% Vacant – Residential 1.4% 1.5% Vacant - Commercial 2.2% 3.4% Total 4.5% 5.6% • Commercial voids: 62 vacant units. Void rate 3.4%, up from 2.2% in March 07 - 8 “non-core” units with rents > £20,000 pa account for 34%:
Slide 17: Highly Active Asset Management Since 28 March
Highly Active Asset Management Since 28 March New Lettings • 33 vacant units let at £353,300 pa, 3.5% above market rent Rent Reviews • Reviews on 65 units increased rents by £111,297 pa • Average uplift of 13.4%, 8.5% above market rent Lease Renewals • Renewals on 14 units have increased rents by £2
Slide 18: Adding Value - Examples
Adding Value - Examples Residential Conversion Unused Upper parts • Listed building in Tewkesbury – purchased for • Single let shop in Goole – purchased for £300k £830K (Jan 07) (Dec 05) • Let to night club, opportunity to take early • Surrender of part: tenant repairs upper floor, new surrender ren
Slide 19: How We Asset Manage
How We Asset Manage • Additional in-house asset manager recruited since IPO Mike Riley Nick Gregory Joint CEO Joint CEO Vickie Bill Heaney Chris Moulden Whitehouse Company Asset FD Secretary & Management Residential Investment Sathan Barbara Andrew Lara Whateley Lana Lucy Briggs Laura Sleep Sathiyav
Slide 20: Business Outlook
Business Outlook Current conditions will provide great opportunities for us Core portfolio is defensive due to the small lot size of our property – Private owners, generally lower borrowings, SIPPs etc – Credit impact on larger transactions – Independent retailers have to work to pay the mortgage –
Slide 21: Our future success will be based on
Our future success will be based on • Robust financing: low cost, long term and hedged • Efficient management systems and a committed team • Active asset management to generate income and capital growth • Recycling of capital through sales of lower yielding ex-growth assets • Share buybacks when app
Slide 22: Contacts
Contacts LSR • Mike Riley tel: +44 (0)20 7187 4444 mike.riley@LSReit.co.uk • Nick Gregory tel: +44 (0)20 7187 4444 nick.gregory@LSReit.co.uk • Vickie Whitehouse tel: +44 (0)20 7187 4444 vickie.whitehouse@LSReit.co.uk 21