Investore Property Ltd. · NZX:IPL
Investore Property — H1 FY2019 Earnings Presentation
26 slides from Investore Property's earnings presentation, November 2018
Slide 1: Interim Results
Interim Results For the six months ended 30 September 2018
Slide 2: Agenda and Contents
Agenda and Contents Page Welcome Philip Littlewood – Chief Executive Officer of the Manager, SIML Highlights 3 Financial Performance 6 Jennifer Whooley – Chief Financial Officer of the Manager, SIML Capital Management 10 Portfolio Overview 13 Governance and Management 19 Philip Littlewood – Chief Ex
Slide 3: Highlights
Highlights
Slide 4: Highlights (HY18 figures in brackets)
Highlights (HY18 figures in brackets) Financial Performance Profit before other • Net rental income of $24.0m ($22.0m), up $2.1m (expense)/income • Corporate expenses of $2.8m ($2.5m), up $0.3m and income tax • Profit before other (expense)/income and income tax of $14.0m ($13.6m), up $0.4m $14.0m,
Slide 5: Highlights (As at March 2018 figures in brackets)
Highlights (As at 31 March 2018 figures in brackets) Portfolio • Total investment property portfolio value $740.4m ($738.3m), with a net valuation loss of 0.1% Investment Property value • Occupancy at 99.9% (99.9%) • Weighted average lease term (WALT) 12.6 years (13.1 years) $740.4m • FY19 expiries
Slide 6: Financial Performance
Financial Performance
Slide 7: Financial Performance
Financial Performance Unaudited Unaudited Change 30 Sep 30 Sep 2018 2017 $m $m $m % Net rental income 24.0 22.0 +2.1 +9.5 Corporate expenses (2.8) (2.5) (0.3) (10.4) Profit before net finance expense, other (expense)/income and income tax 21.2 19.4 +1.8 +9.4 Net finance expense (7.2) (5.9) (1.4) (23
Slide 8: Distributable Profit
Distributable Profit Unaudited Unaudited Change 30 Sep 30 Sep 2018 2017 $m $m $m % Profit before income tax 13.1 14.7 (1.6) (11.1) Non-recurring and non-cash adjustments: - Net change in fair value of investment properties 0.9 (1.2) +2.1 +179.8 - Spreading of fixed rental increases (0.7) (0.5) (0.1)
Slide 9: Financial Summary
Financial Summary Unaudited Audited As at As at 30 Sep 31 Mar 2018 2018 Investment Property value ($m) 740.4 738.3 Drawn debt ($m) 313.0 307.4 Loan to value ratio 42.2%4 41.6% Equity ($m) 426.0 429.1 Shares on issue (millions) 260.3 261.8 NTA per share $1.64 $1.64 Adjusted NTA5 per share $1.64 $1.64
Slide 10: Capital Management
Capital Management
Slide 11: Capital Management
Capital Management Key transactions As at As at 30 Sep 31 Mar • Inaugural bond issue April 2018 - $100m six year bond, resulting Debt facilities 2018 2018 in increased weighted average tenor of debt facilities and increased diversification of funding sources Banking facility limit (ANZ, BNZ, CBA, We
Slide 12: Capital Management (continued)
Capital Management (continued) Key transactions As at As at 30 Sep 31 Mar • $100m fixed rate six year bonds with 4.40% coupon rate Cost of debt 2018 2018 • $25m six year fixed-to-floating interest rate swap entered into, Weighted average cost of debt commenced 18 April 2018 (incl. current interest r
Slide 13: Portfolio Overview
Portfolio Overview
Slide 14: Portfolio Strategy and Overview
Portfolio Strategy and Overview Portfolio Strategy As at As at 30 Sep 31 Mar 2018 2018 ✓ Continued focus on owning properties that have key characteristics of Number of properties 40 40 long lease terms (12.6 years portfolio WALT9), nationally recognised and quality tenants (Countdown, Bunnings, The
Slide 15: Lease Expiry Profile
Lease Expiry Profile ✓ 81% of portfolio Contract Rental > 10 Lease Expiry Profile11 by Contract Rental10 years expiry as at 30 September 2018, as at 30 September 2018 increasing to 83% following major renewal at Countdown Rotorua (post balance date) 81% of portfolio Contract Rental > 10 years expiry
Slide 16: Portfolio Occupancy
Portfolio Occupancy As at 30 September 2018 Occupancy12 Vacancy Total area Property (%) (sqm) (sqm) 3 - 7 Mill Lane, Warkworth 98.0 76 3,815 Corner Hanson Street, John Street, & Adelaide Road, Wellington 98.7 64 4,881 Other 100.0 - 201,284 Total 99.9 140 209,980 12. Calculated as the leased area as
Slide 17: Portfolio Diversification
Portfolio Diversification Tenant Diversification by Contract Rental13 As at 30 September 2018 General Distributors (Countdown) 73% Bunnings 10% Foodstuffs 6% Specialty 5% Mitre 10 3% The Warehouse 73% Geographic Diversification by Contract Rental13 As at 30 September 2018 Auckland 31% Waikato 11% No
Slide 18: Countdown Greenlane, Auckland
Countdown Greenlane, Auckland Investore partners with tenants like GDL in refurbishment projects. HY19 saw the refurbishment of Countdown Greenlane, with Investore participating by: • Repainting the entire exterior of the premises • Re-asphalting the existing 7,750 sqm carpark, and undertaking exter
Slide 19: Governance and Management
Governance and Management
Slide 20: Key Appointments During the Period
Key Appointments During the Period Gráinne Troute Independent Director Gráinne was appointed by the Board in April 2018 and elected by the shareholders in June 2018 as Investore’s third Independent Director. The Board now comprises a majority of independent representation. Gráinne brings over 30 yea
Slide 21: Conclusion
Conclusion
Slide 22: Conclusion
Conclusion Delivery of Performance Strong portfolio metrics • 1.865cps cash dividend for quarter ended 30 September 2018 • Strong portfolio metrics including 99.9% occupancy and 12.6 years WALT as at 30 September 2018 99.9% Occupancy Capital management initiatives reduce risk and 12.6 years WALT enh
Slide 23: Appendices
Appendices
Slide 24: Appendix 1
Appendix 1 Profit before other income and income Tax $2.4m $0.4m $0.2m ($0.9m) $14.0m $13.6m ($1.4m) ($0.2m) ($0.1m) 30-Sep-17 Net rental increase Net rental Net rental increase NZ IFRS Higher net finance Higher Higher 30-Sep-18 from acquisitions reduction from from existing adjustments expense mana
Slide 25: Appendix 2
Appendix 2 Net tangible assets per share $0.05 ($0.01) $1.64 $1.64 ($0.04) 31-Mar-18 Profit before tax Income tax expense Dividends paid 30-Sep-18 Investment properties $0.7m $0.2m $2.1m $740.4m $738.3m ($0.9m) 31-Mar-18 Capital expenditure Transfer from work in Spreading of fixed rental Revaluation
Slide 26: 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 Investore for the six months ended 30 September 2018. Plea