Investore Property Ltd. · NZX:IPL
Investore Property — FY2017 Earnings Presentation
28 slides from Investore Property's earnings presentation, May 29, 2017
Slide 1: Annual Results
Annual Results For the year ended 31 March 2017 Investore Property Limited – Annual Results Presentation for the year ended 31 March 2017 – 29 May 2017
Slide 2: Agenda & Contents
Agenda & Contents Page Welcome Philip Littlewood – SIML General Manager, Investment Management Highlights 3 Financial Performance 6 Jennifer Whooley – SIML Chief Financial Officer Capital Management 10 Portfolio Overview 12 Development Project 16 Acquisitions 18 Philip Littlewood – SIML General Mana
Slide 3: Highlights
Highlights
Slide 4: Highlights
Highlights (Prospective Financial Information forecasted figures in brackets) NZX Main Board Listing § Investore listed and commenced trading on the NZX Main Board on 12 July 2016 NZX Listing § Raised $185m new equity capital 12 July 2016 Financial Performance § Net rental income of $35.0m ($34.9m)
Slide 5: Highlights
Highlights Portfolio § Total portfolio value of $660.4m NTA § Net Tangible Assets (NTA) backing per share of $1.55 per share § FY18 lease expiries at 0.6% of the portfolio contract rental¹ $1.55 § FY19 lease expiries at 3.0% of the portfolio contract rental § Occupancy at 99.8% § Weighted average le
Slide 6: Financial Performance
Financial Performance
Slide 7: Financial Performance
Financial Performance 2017 2017 Prospective Change Actual Base Case ($ millions) ($ millions) $ millions % Net rental income 35.0 34.9 0.1 0.4 Corporate expenses (4.7) (4.8) 0.1 2.3 Profit before net finance expenses, other income/(expenses) and income tax 30.4 30.1 0.2 0.8 Net finance expenses (13.
Slide 8: Distributable Profit
Distributable Profit 2017 2017 Prospective Change Actual Base Case ($ millions) ($ millions) $ millions % Profit before income tax 30.8 16.0 14.8 92.4 Non-recurring and non-cash adjustments: - Net change in fair value of investment properties (13.7) 1.2 (15.0) (1,210.9) - Swap break cost 3.7 2.7 1.0
Slide 9: Financial Summary
Financial Summary As at 31 Mar 2017 Property value ($ millions) 660.4 Bank debt drawn ($ millions) 261.0 Bank loan to value ratio 39.5% Equity ($ millions) 382.2 Shares on issue (millions) 261.8 NTA per share $1.55 Adjusted NTA¹ per share $1.54 9 ¹ Excludes the after tax fair value of interest rate
Slide 10: Capital Management
Capital Management
Slide 11: Capital Management
Capital Management As at As at 31 Mar 2017 Covenant 31 Mar 2017 Bank facility limit (ANZ, BNZ, CBA, Westpac) $370m Loan to Value Ratio ≤ 65% 39.5% (Bank Debt / Property Values) Bank debt drawn $261m Interest Cover Ratio ≥ 1.75x 3.4 (EBIT / Interest and Financing Costs)¹ Weighted average cost of debt
Slide 12: Portfolio Overview
Portfolio Overview
Slide 13: Portfolio Summary
Portfolio Summary Tenant diversification of Investore Portfolio (based on Contract Rental) As at As at 31 March 2017 Overview 31 Mar 2017 Properties 39 Tenants 73 Net Lettable Area (m2) 174,327 Occupancy Rate (by area) 99.8% WALT (years) 14.3 Portfolio Value $660.4m Geographic diversification of Inv
Slide 14: Remaining Lease Expiries FY18 & FY19
Remaining Lease Expiries FY18 & FY19 FY18 Net Lettable Area % of Property Tenant (m2) Contract Rental 226 Great South Road Various (four) 717 0.65 717 0.65 As at 30 September 2016, 4.33% of contract rental expiries remained in FY18. The predominant reason for the reduction is the new 12 year lease f
Slide 15: Portfolio Occupancy 99.8% (by area)
Portfolio Occupancy 99.8% (by area) 2017 2017 2017 Property Occupancy (%) Vacancy (m2) Total Area (m2) 3-7 Mill Lane, Warkworth 98.0 76 3,815 Corner Hanson St, John St & Adelaide Road, Wellington 98.7 64 4,881 172 Tay Street, Invercargill 97.6 126 5,162 Other 100.0 0 160,469 Total Investment Propert
Slide 16: Development Project
Development Project
Slide 17: Development Project
Development Project Animates, § $2.2m project completed in February 2017 Tay Street, Invercargill § 820m² development consists of two retail tenancies, Animates and a medical facility 17 Investore Property Limited – Annual Results Presentation for the year ended 31 March 2017 – 29 May 2017
Slide 18: Acquisitions
Acquisitions
Slide 19: Acquisitions
Acquisitions SCA Portfolio § Nationwide portfolio of 14 large format retail properties in strong catchment areas with exposure to the non-discretionary take-home food, packaged liquor and groceries sector § High quality tenant in General Distributors Limited, the operator of Countdown supermarkets i
Slide 20: Strategy Overview
Strategy Overview
Slide 21: Investment Philosophy and Strategy
Investment Philosophy and Strategy § Large format retail properties have a specific, differentiating set of attributes that can provide a reliable income return to shareholders. These attributes are: Investment – Quality tenants, including significant national retailers, offering rental income stabi
Slide 22: Conclusion
Conclusion
Slide 23: Conclusion
Conclusion Execution of Strategy § Successful NZX Main Board listing on 12 July 2016 Listing on NZX § Settlement of six SCA properties on 12 July 2016 and eight SCA properties on 28 September 2016, for $267.4m in total 12 July 2016 § Cash dividend 5.35cps for FY17 4.3% up on forecast § Targeting ann
Slide 24: Appendices
Appendices
Slide 25: Appendix Valuation Summary
Appendix 1 Valuation Summary Address 31 Mar 17 Revaluation Revaluation Market Cap Market Cap Valuation Movement1 Movement1 Rate 2017 Rate 2016 $m % $m % % 24 Anzac Road, Auckland 21.94 5.8 1.20 5.75 6.00 326 Great South Road, Auckland 30.28 4.1 1.20 5.75 6.00 35a St Johns Road, Auckland 21.40 0.1 0.
Slide 26: Appendix Valuation Summary (continued)
Appendix 1 continued Valuation Summary Address 31 Mar 17 Revaluation Revaluation Market Cap Market Cap Valuation Movement1 Movement¹ Rate 2017 Rate 2016 $m % $m % % 9 Gloucester Street, Napier 15.50 5.0 0.74 6.13 6.25 Cnr Te Irirangi Drive & Bishop Dunn Place, Auckland 28.70 66.8 11.49 5.25 7.50 35
Slide 27: Appendix
Appendix 2 Investment Properties Net Contract Rental $17.7m $43.4 $45.0 $0.1m $0.1m $0.2m $660.4m $700.0 $268.3m $2.2m $13.7m $650.0 $40.0 $600.0 $550.0 $35.0 $500.0 $450.0 $30.0 $87.0m $6.7m $400.0 $25.0 $350.0 $287.0m $2.2m $300.0 $20.0 $18.4m $0.2m $250.0 $200.0 $15.0 31 Mar 16 Development Stride
Slide 28: Thank you
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 year ended 31 March 2017. Plea