Stride Property Group · NZX:SPG
Stride Property — DNZ Property Fund — Shareholder Meeting (August 2012)
35 slides from Stride Property's shareholder meeting presentation, Aug 15, 2012
Slide 1: Annual Meeting 15 August 2012
ANNUAL MEETING 15 AUGUST 2012
Slide 2: DNZ Property Fund Limited - Annual Meeting 15 August 2012
2 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 3: Directors & Senior Management
3 Directors & Senior Management Tim Storey - Chairman & Independent Director John Harvey - Independent Director David van Schaardenburg - Independent Director Michael Stiassny - Independent Director Paul Duffy - Executive Director Jennifer Whooley - Chief Financial Officer & Company Secretary Audito
Slide 4: Agenda
4 Agenda Tim Storey A. Chairman’s Address Chairman Paul Duffy B. Chief Executive’s Review Chief Executive Tim Storey C. Financial Statements Chairman D. Ordinary Resolutions E. General Business DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 5: Highlights
5 Highlights (31 March 2011 figures in brackets) OPERATING PROFIT Operating profit before tax of BEFORE TAX $28.8m ($21.8m) up 32% on prior UP 32% year Net rental income of $52.9m ($52.0m) Distributable profit of $27.8m or 11.22 cents per share ($21.9m or 9.60 cents per share) DNZ PROPERTY FUND LIMI
Slide 6: Highlights
6 Highlights (31 March 2011 figures in brackets) LVR Loan to value ratio (LVR) 40.6% 40.6% (40.4%) Increased cash dividend for full FY12 ANNUAL FY12 DIVIDEND financial year: 8.5 cents 8.5 cent cash dividend for full FY12 financial year PER SHARE 9.0 cent cash dividend guidance for FY13 financial yea
Slide 7: Capital Management
7 Capital Management As at Covenant Covenant 31 March 2012 Loan to Value Ratio (Bank Debt / Property Values) < 50% 40.6% Interest Cover Ratio (EBIT / Interest and Financing > 1.75 x 2.62 Costs) Fully Leased Unexpired Term1 > 3.0 years 5.18 years Gross realisation of $51.9m from asset sales $105m of
Slide 8: Dividends
8 Dividends Total cash dividend for FY12 was 8.5 cents per share Board expects to pay a dividend of 9 cents per share for FY13 First Quarter 2013 Cash Dividend Cash dividend of 2.25 cents per share Imputation credits of 0.603 cents per share Record date 31 August 2012 Payment to be made on 13 Septem
Slide 9: Dividend Reinvestment Plan
9 Dividend Reinvestment Plan The Board has today approved the implementation of the updated Dividend Reinvestment Plan (DRP) for this FY13 first quarter dividend. A discount for the price of shares issued under the DRP has been set at 1% on the 5 day weighted average trading price of the shares, com
Slide 10: Summary & Outlook
10 Summary & Outlook Strong governance Highly regarded & experienced management team Sustainable dividends Solid platform from which to grow and continue DNZ’s strong performance in FY13 Assess opportunities to enhance DNZ DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 11: DNZ Property Fund Limited - Annual Meeting 15 August 2012
11 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 12: Highlights
12 Highlights (31 March 2011 figures in brackets) PORTFOLIO OCCUPANCY Asset values stable as at 31 March 98.7% 2012 189 lease transactions over PORTFOLIO 232,122m2 WALT Occupancy increased to 98.7% 5.4 years 5.4 yrs (97.9%) PORTFOLIO Weighted average lease term (WALT) VALUATION extended to 5.4 years
Slide 13: Portfolio Summary
13 Portfolio Summary As at As at As at Overview 31 March 31 March 30 June 2011 2012 2012 Properties 50 51 51 Tenants 283 252 252 Net Lettable Area (m2) 371,481 379,965 379,960 WALT (years) 4.3 5.4 5.6 Occupancy Rate (by area) 97.9% 98.7% 98.6% Asset Valuation $638m $658m $658m* * 31 March 2012 valua
Slide 14: Acquisitions
14 Acquisitions Foodstuffs Portfolio Three supermarkets in Napier, New Plymouth and Wellington Settled 4 October 2011 $40.7m 18 year leases to Foodstuffs (Wellington) Co-op Limited Foodstuffs DNZ’s 5th largest tenant by contract rental Annual rent review mechanism DNZ PROPERTY FUND LIMITED - ANNUAL
Slide 15: Acquisitions
15 Acquisitions Bunnings, Mt Roskill, Auckland Settled 6 March 2012 $24.5m 15 year lease to Bunnings NZ Limited (Wesfarmers) Bunnings elevated to DNZ’s largest tenant by contract rental Annual rent review mechanism DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 16: Acquisitions - August 2012
16 Acquisitions - 13 August 2012 51 Corinthian Drive, Albany, Auckland Settles 31 August 2012 $12.9m 9 year lease to Westpac (76% of building) Corinthian Drive 1.4ha bare land Conditional agreement Development opportunities Sits between ASB at 33 Corinthian Drive and Westpac at 51 Corinthian Drive D
Slide 17: Diversification by Sector and Location
17 Diversification by Sector and Location DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 18: Diversification By Tenant
18 Diversification By Tenant Top 10 Tenants Represent 52% of Total Contract Rental DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 19: Sustainable Cashflow - Tenant Commitment
19 Sustainable Cashflow - Tenant Commitment As at As at As at Overview 31 March 31 March 30 June 2011 2012 2012 WALT (years) 4.3 5.4 5.6 Occupancy Rate (by area) 97.9% 98.7% 98.6% DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 20: Sustainable Cashflow - Quality of Tenants
20 Sustainable Cashflow - Quality of Tenants FY12 Transactions Area Term Annual Commencement Contract Tenant (m2) (years) Rental ($) Goodyear & Dunlop Tyres1 September 2015 9,727 5.5 938,521 DDB2 June 2012 3,659 6 921,001 healthAlliance April 2012 2,141 3 684,420 NZ Post September 2011 6,027 6 549,6
Slide 21: Sustainable Cashflow - Low Expiry Risk
21 Sustainable Cashflow - Low Expiry Risk Lease Expiry Profile As at 30 June 2012 FY13 10.86% reduced to 4.70% & FY14 10.54% reduced to 5.47% DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 22: Seismic Review
22 Seismic Review DNZ is well advanced on completing seismic reviews of all its properties Initial Evaluation Procedure (IEP) reports are being completed on all properties within the portfolio that were built prior to 2000 All office properties undergoing Detailed Engineering Evaluations (DEE) Winst
Slide 23: Seismic Review
23 Seismic Review The DEE review of DNZ’s Wellington office properties that were built prior to 2000, have received Grade “A” ratings - “Low Risk” properties Expected to be completed by the third quarter of the current financial year DNZ Target > 67% (“Low Risk”) Source: BECA DNZ PROPERTY FUND LIMIT
Slide 24: Proactive Management Approach
24 Portfolio Risk Management Summary Diversification Sustainable Cashflow Location Quality of Tenants Sector Quality of Assets Tenant WALT Asset Occupancy Lease Expiry Profile Proactive Management Approach DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 25: Outlook
25 Outlook Increasing ownership in the Auckland region Pre-development planning for Johnsonville Shopping Centre Continue with portfolio review of obtaining seismic ratings Pro-active management with tenant relationships paramount Portfolio well positioned in what continues to be a challenging busin
Slide 26: DNZ Property Fund Limited
26 DNZ Property Fund Limited DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 27: DNZ Property Fund Limited - Annual Meeting 15 August 2012
27 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 28: Financial Statements
28 Financial Statements C. Financial Statements To receive and consider the annual report and audited financial statements for the year ended 31 March 2012. DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 29: Q & A Company Performance
29 Q & A Company Performance In addressing the Chair with questions please state your name and advise whether you are a Shareholder, a proxy holder or a Shareholder company representative. Reminder: Only Shareholders, proxy holders or Shareholder company representatives have a right to speak. DNZ PR
Slide 30: DNZ Property Fund Limited - Annual Meeting 15 August 2012
30 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 31: Resolution 1 - Appointment of auditor
31 Resolution 1 Resolution 1 – Appointment of auditor I move, as an ordinary resolution “That PricewaterhouseCoopers be appointed as auditor of the Company on such terms as to fees and expenses as are determined by the directors of the Company” Is there any discussion? Thank you, voting on this reso
Slide 32: Resolution 2 - Appointment of director
32 Resolution 2 Resolution 2 – Appointment of director “That Michael Peter Stiassny be re-elected as a director of the Company pursuant to clause 20.3 of the Constitution.” Is there any discussion? Thank you, voting on this resolution will be by poll please tick the box either FOR or AGAINST, in res
Slide 33: Resolution 3 - Appointment of director
33 Resolution 3 Resolution 3 – Appointment of director “That David Gregory van Schaardenburg be re- elected as a director of the Company pursuant to clause 20.3 of the Constitution.” Is there any discussion? Thank you, voting on this resolution will be by poll please tick the box either FOR or AGAIN
Slide 34: DNZ Property Fund Limited - Annual Meeting 15 August 2012
34 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING 15 AUGUST 2012
Slide 35: Thank You
THANK YOU Important Notice: Certain statements in this presentation constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors (many of which are beyond the control of DNZ) which may cause the actual results, p
DNZ Property Fund — Shareholder Meeting (August 2012) on 6ix