National Storage Reit · ASX:NSR
National Storage Reit — FY2022 Earnings Presentation
34 slides from National Storage Reit's earnings presentation, Aug 22, 2022
Slide 1: FY22 Results
PERSONAL | STORAGE
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by National direct or indirect loss or damage which may be These forward-looking statements are not or any change in the events, conditions or Storage REIT (“NSR”) comprising National Storage suffered through the use, or reliance on, anything guarantees
Slide 3: Canterbury, VIC Milton, QLD Montrose, TAS
Canterbury, VIC Milton, QLD Montrose, TAS Biggera Waters, QLD Moorooka, QLD Artarmon, NSW Robina, QLD Manukau, NZ Mawson Lakes, SA
Slide 4: Agenda
AGENDA ▪ Key Highlights and Financial Results ▪ NSR Strategy ▪ ESG ▪ Outlook ▪ Appendices 4
Slide 5: Key Highlights and Financial Results
KEY HIGHLIGHTS AND FINANCIAL RESULTS
Slide 6: FY22 Highlights
FY22 HIGHLIGHTS A-IFRS PROFIT $620.6 MILLION (EPS 52.1 CENTS) | UNDERLYING EPS 10.6 CENTS GROUP GROUP WEIGHTED UNDERLYING UNDERLYING OCCUPANCY2 REVPAM2 AVERAGE PRIMARY EARNINGS1 EPS1 CAP RATE $126.5m 10.6 cents 88.9% $268 5.86% (Up 46%) (Up 24.7%) (Up 2.8%) (Up 20.9%) (Firmed 12bps) DEVELOPMENTS TOT
Slide 7: Exceptional Profile of Growth and Returns
EXCEPTIONAL PROFILE OF GROWTH AND RETURNS NSR HAS A TRACK RECORD OF DELIVERING STRONG GROWTH AND SECURITYHOLDER RETURNS UNDERPINNED BY THE FOUR PILLAR GROWTH STRATEGY Total Revenue ▪ Since IPO, NSR has delivered total securityholder returns of 308%, $350 CAGR: 24.6% significantly outperforming the A
Slide 8: Profit and Loss for the Year Ended June 2022
PROFIT AND LOSS FOR THE YEAR ENDED 30 JUNE 2022 STRATEGY CONTINUES TO $ Million FY22 FY21 % Change DELIVER SUPERIOR GROWTH Storage revenue 251.9 193.5 30% Sales of goods and services 14.5 11.8 23% Other revenue 10.4 9.3 12% Total Revenue 276.8 214.6 29% ▪ FY22 performance Cost of Goods Sold 6.7 5.4
Slide 9: Summary Balance Sheet as at June 2022
SUMMARY BALANCE SHEET AS AT 30 JUNE 2022 NTA UPLIFT AND BALANCE SHEET GEARING PROVIDES CAPACITY FOR GROWTH $ Million Jun 22 Jun 21 Movement Cash 83.7 95.9 (12.2) ▪ NTA increased by 23.8% to $2.34 per stapled security Investment Properties 1 3,726.8 2,950.9 775.9 (June 2021: $1.89) Intangible Assets
Slide 10: Capital Management
CAPITAL MANAGEMENT TRANSITIONED TO UNSECURED DEBT PLATFORM Capital Management Jun-22 Jun-21 ▪ Restructured to an unsecured debt platform with new and existing Cash balance $83.7m $95.9m lenders to enable NSR to pursue term loan and debt capital markets opportunities - target to extend NSR’s debt ten
Slide 11: Key Operational Metrics
KEY OPERATIONAL METRICS ACTIVE MANAGEMENT OF RATE AND Group REVPAM OCCUPANCY MAINTAINS MOMENTUM 290 270 250 230 210 ▪ Sustained REVPAM growth during FY22, consolidating the gains 190 made during FY21 170 150 ▪ Group REVPAM increased by 20.9% to $268/m2 ▪ Group rate increased 18.8% to $302/m2 Group O
Slide 12: NSR Strategy
NSR STRATEGY
Slide 13: Four Pillars of Growth
NSR STRATEGY FOUR PILLARS OF GROWTH ORGANIC GROWTH ACQUISITIONS DEVELOPMENT TECHNOLOGY AND AND EXPANSION INNOVATION NSR achieves organic NSR has executed over NSR has a highly NSR leads the Australasian growth through a 160 high-quality developed and proven in- storage industry with new combination
Slide 14: Drivers of Organic Growth and Storage Demand
DRIVERS OF ORGANIC GROWTH AND STORAGE DEMAND MULTIPLE, DIVERSE DRIVERS SUPPORT ONGOING GROWTH TRAJECTORY Flexible Working Conditions Downsizing Increased Utilisation Additional decluttering efforts due to WFH flexibility as employees convert living Large cohort of older individuals and Increased awa
Slide 15: Built Capacity and Pipeline
BUILT CAPACITY AND PIPELINE EMBEDDED GROWTH FROM INCREASING ORGANIC OCCUPANCY, RATE AND DEVELOPMENT PIPELINE Total NLA 1,200,000 ▪ Significant growth opportunity remains in existing built capacity (NLA) derived from historical acquisition and development activity 1,000,000 ▪ Australian and New Zeala
Slide 16: Acquisitions
ACQUISITIONS AUSTRALASIA’S NO. 1 ACQUIRER OF HIGH-QUALITY, INDEPENDENTLY OWNED STORAGE CENTRES PORTFOLIO VALUE (A$ MILLION) - - - - 6 8 8 11 11 13 14 22 23 23 25 25 26 31 # assets ▪ Focus on “value” acquisitions 38 41 49 54 59 68 97 102 107 117 127 141 154 161 176 181 185 191 ▪ NSR remains acquirer
Slide 17: Acquisitions
ACQUISITIONS MARKET REMAINS HIGHLY FRAGMENTED WITH SIGNIFICANT POTENTIAL FOR FURTHER CONSOLIDATION REGION NUMBER OF NLA CENTRES (M2) Brisbane 5 26,300 23 ACQUISITIONS TOTALLING $200M TRANSACTED IN FY22 Sydney 1 6,300 ▪ NSR remained focused on execution of its acquisition strategy Adelaide 1 2,900 Pe
Slide 18: Development, Expansions & Redevelopments
DEVELOPMENT, EXPANSIONS & REDEVELOPMENTS INCREASING FOCUS ON DEVELOPMENT, EXPANSION AND REDEVELOPMENT PROJECTS 5 projects completed during FY22, adding 38,300m2 of NLA Development Strategy ▪ Target projects providing additional built capacity in key markets 34 active projects, with 10 projects under
Slide 19: Technology
TECHNOLOGY HARNESSING NEW TECHNOLOGY AND INNOVATION FOR ENHANCED BUSINESS OUTCOMES ▪ IT Security and Cyber upgrades are ongoing ▪ Technology into new builds ▪ Collaborating with our development team to bring key technologies into new builds, expansions and refurbishments ▪ Key business process impro
Slide 20: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
Slide 21: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE COMMITMENT TO SUSTAINABLE PRACTICES ACROSS THE ENVIRONMENTAL, SOCIAL AND GOVERNANCE LANDSCAPE ▪ ESG comprises a fundamental component of our decision making in respect to all four pillars of NSR’s business – including how we foster organic growth, our targeted ac
Slide 22: People and Culture
PEOPLE AND CULTURE FOCUS ON LEADERSHIP CAPABILITY, GEOGRAPHICAL CONSISTENCY, TEAM ENGAGEMENT AND WELL-BEING ▪ People and Culture ▪ Senior Management Team Retention and Incentive Plan implemented ▪ 2022 Team Engagement Survey completed returning positive and valuable feedback ▪ All of staff alignment
Slide 23: Carbon Footprint
CARBON FOOTPRINT FIRST INDEPENDENT CARBON AUDIT COMPLETED ▪ NSR engaged the Carbon Reduction Institute to conduct a Carbon Footprint Audit to measure its carbon footprint based on centres owned at 30 June 2020 ▪ The audit confirmed NSR has a low carbon footprint ▪ Current audit underway based on at
Slide 24: Solar Potential
SOLAR POTENTIAL PENRITH – SYDNEY – RECENT ACQUISITION DEMONSTRATES SOLAR POTENTIAL • Acquired May 2022 • Combination of self storage and mini warehouses • “100%” roof coverage with solar • 850kW installed • 1,888 solar panels • Generates approx. 800,000kWh per year • Exports approx. 700,000kWh per y
Slide 25: Board of Directors & Executive
BOARD OF DIRECTORS & EXECUTIVE Anthony Keane Howard Brenchley Steven Leigh Inmaculada (Inma) Beaumont Scott Smith Non-executive Chairman Non-executive Director Non-executive Director BSc(Maths) GradDiCorpFin Grad Dip Proj Mgmt Non-Executive Director, Non-Executive Director BEc BA (Mathematics), BA H
Slide 26: Outlook
OUTLOOK
Slide 27: FY23 Guidance & Outlook
FY23 GUIDANCE & OUTLOOK1 UNDERLYING EPS MINIMUM 11.1CPS – IMPLIES MIN 5% EPS GROWTH Key Assumptions: UNDERLYING EPS Minimum 11.1cps ▪ REVPAM growth No less than 4.0% ▪ Average floating interest rate 2 3.92% (Min 5% growth) ▪ Acquisitions $200m - $300m UNDERLYING EARNINGS Greater than $133m DISTRIBUT
Slide 28: Thank You
THANK YOU invest@nationalstorage.com.au nationalstorage.com.au
Slide 29: Appendices
APPENDICES invest@nationalstorage.com.au nationalstorage.com.au
Slide 30: Development
DEVELOPMENT TARGETED DEVELOPMENT PROVIDING ADDITIONAL UNIT PIPELINE IN KEY AREAS Overview ▪ Target projects providing additional pipeline in key areas Albany, NZ ▪ Five projects completed during FY22 (38,300m2 of NLA) ▪ 21 active projects, with 7 projects under construction ▪ Aggregate NLA pipeline
Slide 31: Expansion and Redevelopment
EXPANSION AND REDEVELOPMENT EXPANSION AND REDEVELOPMENT PROJECTS PROVIDING SIGNIFICANT VALUE ADD POTENTIAL Overview ▪ Use of existing NSR owned land in proven locations ▪ 13 active projects ▪ Aggregate NLA pipeline of approximately 85,000m2 Expansions and Redevelopment – Existing centres ▪ Strategic
Slide 32: Case Study – Expansion
CASE STUDY 1 – EXPANSION PORT KENNEDY – WA Expansion Site BEFORE ▪ Purchased additional land adjacent to existing centre ▪ Construction of purpose built storage centre ▪ Additional NLA: 6,600m2 ▪ Cost: $12m ▪ Construction time: 12 months ▪ NLA: 5,750m2 ▪ Est additional revenue: $1.5m ▪ Current reven
Slide 33: Case Study – Mixed Use Redevelopment
CASE STUDY 2 – MIXED USE REDEVELOPMENT MOOROOKA – BRISBANE Mixed Use Redevelopment ▪ Demolition of existing structure ▪ Construction of purpose built storage and service centre ▪ Storage NLA: 6,000sqm ▪ Service centre NLA: 300sqm ▪ Construction cost: $17m ▪ Construction time: 12 months ▪ Existing wa
Slide 34: Notes
NOTES 34