Stride Property Group · NZX:SPG
Stride Property — DNZ Property Fund — H1 FY2015 Earnings Presentation
24 slides from Stride Property's earnings presentation, Nov 12, 2014
Slide 1: Interim Result for the six months ended 30 September 2014
ONZ Property INTERIM RESULT For the six months ended 30 September 2014
Slide 2: Contents
CONTENTS Page Highlights 3 Financial Performance 6 Capital Management 10 Portfolio Overview 12 Developments 17 Conclusion 21 Appendix 22 This DNZ Property Fund Limited Results Presentation should be read in conjunction with the NZX announcement and Interim Report released 12 November 2014. DNZ PROPE
Slide 3: Highlights
HIGHLIGHTS Artist’s Impression of Westgate Mall DNZ PROPERTY FUND LIMITED - INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 3
Slide 4: Interim Highlights: Financial Performance
INTERIM HIGHLIGHTS (PRIOR PERIOD 30 SEPTEMBER 2013 FIGURES IN BRACKETS) Net Profit after Financial Performance Income Tax up Net rental income of $29.0m ($28.2m) up 2.7%. 40.9% Corporate expenses of $3.0m ($4.1m) down 26.9%. Operating profit before other income and income tax of $20.1m ($17.6m) up 1
Slide 5: Interim Highlights: Portfolio and Developments
INTERIM HIGHLIGHTS (31 MARCH 2014 FIGURES IN BRACKETS) Portfolio Independent valuations undertaken on 12 properties, resulting in a net increase of $10.73m or 1.4%1. WALT Net Tangible Asset Backing (NTA) increased to $1.73 ($1.69). 5.4 years 112 lease transactions completed over 121,292m2 for a tota
Slide 6: Financial Performance
FINANCIAL PERFORMANCE DNZ PROPERTY FUND LIMITED - INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 6
Slide 7: Financial Performance: Consolidated Group
FINANCIAL PERFORMANCE CONSOLIDATED GROUP Actual Actual Variance 30 Sep 2014 30 Sep 2013 ($ millions) ($ millions) $ millions % Net rental income 29.0 28.2 0.8 2.7 Management fee income 0.7 0.8 (0.1) (11.2) Corporate expenses (3.0) (4.1) 1.1 26.9 Operating profit before net finance expenses, other in
Slide 8: Distributable Profit
DISTRIBUTABLE PROFIT CONSOLIDATED GROUP Actual Actual Variance 30 Sep 2014 30 Sep 2013 ($ millions) ($ millions) $ millions % Net profit before income tax 30.9 22.7 8.2 36.1 NZ IFRS and other adjustments: - Net change in fair value of investment properties (10.7) (5.3) (5.4) (102.5) - (Gain) / loss
Slide 9: Financial Summary
FINANCIAL SUMMARY As at As at 30 Sep 2014 31 Mar 2014 Portfolio value1 ($ millions) 788.0 780.2 Bank debt drawn ($ millions) 286.1 268.2 Bank loan to value ratio 36.3% 34.4% Equity ($ millions) 516.2 505.2 Shares on issue (millions) 297.2 296.9 NTA per share2 (refer Appendix 1) $1.73 $1.69 Adjusted
Slide 10: Capital Management
CAPITAL MANAGEMENT Meridian, 33 Customhouse Quay, Wellington DNZ PROPERTY FUND LIMITED - INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 10
Slide 11: Capital Management
CAPITAL MANAGEMENT As at As at As at 30 Sep 30 Sep 31 Mar Covenant 2014 2014 2014 Loan to Value Ratio (Bank Debt / Property Values) ≤ 50% 36.3% Bank Facility limit $400m $400m (ANZ, BNZ, CBA, Westpac) Interest Cover Ratio (EBIT / Interest and Financing Costs) ≥ 1.75 x 3.32x Bank debt drawn $286m $26
Slide 12: Portfolio Overview
PORTFOLIO OVERVIEW 1 Grey Street, Wellington DNZ PROPERTY FUND LIMITED - INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 12
Slide 13: Portfolio Summary
PORTFOLIO SUMMARY Overview As at 30 Sep 2014 As at 31 Mar 2014 Properties 45 46 Tenants 286 292 Net Lettable Area (m2) 358,307 364,916 WALT (years) 5.4 5.5 Occupancy Rate (by area) 99.0% 99.5% Portfolio Value $788.0m $780.2m Portfolio Contract Rental1 by Sector Lease Expiry Profile2 by Contract Rent
Slide 14: Major Lease Transactions Completed
MAJOR LEASE TRANSACTIONS COMPLETED Annual Contract Tenant Property Commencement Area (m2) Term (years) Rental ($) Fonterra Brands New Zealand 12 Tyers Road, Wellington Oct 2014 1,304 9 230,000 IAG New Zealand 7-9 Fanshawe Street, Auckland May 2015 1,050 3 304,318 Mt Wellington Shopping Centre, Gener
Slide 15: Remaining Lease Expiries FY15 & FY16
REMAINING LEASE EXPIRIES FY15 & FY16 FY15 Net Lettable % of Property Tenant Area (m2) Contract Rental Johnsonville Shopping Centre, Wellington Various 4,264 1.22 22 Ha Crescent, Auckland Online Distribution 8,757 1.13 Balance 1.14 3.49 As at 30 September 2014, 3.49% of contract rental expiries remai
Slide 16: Portfolio Occupancy 99.0%
PORTFOLIO OCCUPANCY 99.0% Occupancy (%) Vacancy (m2) Total Area (m2) Occupancy (%) Property 30 Sep 2014 30 Sep 2014 30 Sep 2014 31 Mar 2014 650 Great South Road, Auckland 90.2 824 8,393 90.1 8 Rockridge Avenue, Auckland 70.7 910 3,108 100.0 21 – 25 Teed Street, Auckland 79.9 817 4,071 100.0 1 Grey S
Slide 17: Developments
DEVELOPMENTS Westgate Mall Development, Auckland DNZ PROPERTY FUND LIMITED - INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 17
Slide 18: Developments: Westgate Mall
DEVELOPMENTS WESTGATE MALL DNZ PROPERTY FUND LIMITED - INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 18
Slide 19: Developments: Westgate Mall and Johnsonville
DEVELOPMENTS Westgate Mall Opening date October 2015. Gross Floor Area 34,000m² / Net Lettable Area (NLA) 27,000m². Will compose approximately 90 specialty stores, 1,100 car parks, an 8,000m² Farmers department store and a 4,200m² Countdown supermarket. Progress on site well advanced and pre-leasing
Slide 20: Strategy Overview
STRATEGY OVERVIEW DNZ undertook a strategic review of its organisational structure and existing portfolio, targeting higher returns to shareholders. DNZ owns a portfolio diversified across the three core property sectors of office, retail and industrial. Each sector has slightly different fundamenta
Slide 21: Conclusion
CONCLUSION Execution of Strategy is delivering results Organisation restructure completed and Management Expense Ratio (MER) addressed. Dividend annual Dividend increased from 9.0 cps to 9.5 cps for FY15, a 5.56% increase. growth of 2.5% Dividend annual growth of 2.5% minimum targeted. minimum targe
Slide 22: Appendix
APPENDIX ASB, 33 Corinthian Drive, Auckland DNZ PROPERTY FUND LIMITED - INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 22
Slide 23: Appendix: Bridge Charts
APPENDIX 1 BRIDGE CHARTS DNZ PROPERTY FUND LIMITED - INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014 23
Slide 24: Thank You
DNZ Property Fund Limited THANK YOU Level 2, 80 Greys Avenue, Auckland 1010 PO Box 6320, Wellesley Street, Auckland 1141 Tel: +64 9 912 2690 Fax: +64 9 912 2693 www.dnzproperty.com Important Notice: The information in this presentation is an overview and does not contain all information necessary to