Stride Property Group · NZX:SPG
Stride Property — H1 FY2019 Earnings Presentation
28 slides from Stride Property's earnings presentation, November 2018
Slide 1: Interim Results for the six months ended 30 September 2018
Stride Property Group (NS) 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 Highlights 3 Financial Performance 10 Jennifer Whooley – Chief Financial Officer Capital Management 15 Portfolio Overview 18 Philip Littlewood – Chief Executive Officer Conclusion 23 Appendices 25 2 Stride Property Group (N
Slide 3: Highlights
Highlights
Slide 4: Financial Performance
(HY18 figures in brackets) Financial Performance • Net rental income of $27.9m ($29.5m), lower primarily due to the Profit after income tax divestment of three Bunnings operated properties to Investore Property Limited (Investore) and the development at Springs Road, Auckland • Profit before income
Slide 5: Portfolio – Stride Property Limited (SPL)
(As at 31 March 2018 figures in brackets) Portfolio – Stride Property Limited (SPL) • Occupancy at 98.9% (96.7%), up 2.2% Higher occupancy • Weighted average lease term (WALT) maintained at 5.1 years (5.1 years) • Significantly improved lease expiry profile2 for the next two years – reducing 98.9%,
Slide 6: Developments, Acquisitions and Divestments - SPL
Developments, Acquisitions and Divestments - SPL • 11 Springs Road, Auckland – construction of a new head office for Waste Waste Management Management, with practical completion expected late calendar year 2019 development completion • $4.7m expansion for Rebel Sports and Briscoes premises at Bay Ce
Slide 7: Board Refresh and New Executives Appointed
Board Refresh - Stride Our values • To be continued over the next 24 months • Appointment of two new directors expected prior to FY19 Annual Discipline People Shareholder Meetings driven centred New Executives Appointed – Stride Investment Management Limited (SIML) executive team now complete Nimble
Slide 8: Investore and Diversified updates
Investore Investore bond $100m, April 2018 • $100m bond issue completed April 2018 • Share buyback programme commenced August 2018, 1.47m shares acquired to date • Eight Countdown stores refurbished during previous eighteen months • Mitre 10 Botany expansion expected to be completed by the end of th
Slide 9: Portfolio Valuation: Owned and Managed Properties
Portfolio Valuation: Owned and Managed Properties Value of Number of SPL Investment Investment Investment in Managed Properties6 Properties Entities 8 $934m7 26 – $740m 40 19.9% 8 $538m 4 2% Total $2,212m 69 – 6. SPL and Investore valuations are as at 30 September 2018. Diversified’s valuations are
Slide 10: Financial Performance
Financial Performance
Slide 11: Financial Performance
Financial Performance Stride Property Group - Consolidated Unaudited Unaudited Change 30 Sep 2018 30 Sep 2017 $m $m $m % Net rental income 27.9 29.5 (1.6) (5.4) Management fee income 7.3 7.7 (0.4) (5.5) Corporate expenses (9.4) (8.3) (1.1) (13.4) Profit before net finance expense, other income and i
Slide 12: Distributable Profit
Distributable Profit Stride Property Group - Consolidated Unaudited Unaudited Change 30 Sep 2018 30 Sep 2017 $m $m $m % Profit before income tax 44.1 38.8 +5.2 +13.5 Non-recurring and non-cash adjustments: - Net change in fair value of investment properties (23.6) (14.4) (9.2) (63.6) - Gain on dispo
Slide 13: AFFO Distributable Profit
AFFO Distributable Profit Stride Property Group - Consolidated Unaudited Unaudited Change 30 Sep 2018 30 Sep 2017 $m $m $m % Distributable profit after current income tax 19.6 19.7 (0.1) (0.7) Adjustments to funds from operations: - Maintenance capital expenditure (3.1) (2.7) (0.5) (17.4) Adjusted F
Slide 14: Financial Summary
Financial Summary Stride Property Group - Consolidated Unaudited Audited Unaudited 30 Sep 18 31 Mar 18 30 Sep 17 Portfolio valuation11 ($m) 934.5 902.2 918.7 Bank debt drawn ($m) 318.6 307.7 356.6 Bank loan to value ratio12 (LVR) 34.2% 34.1% 38.8% Equity ($m) 688.3 667.1 622.8 Shares on issue (milli
Slide 15: Capital Management
Capital Management
Slide 16: Capital Management – Debt Facilities
Capital Management – Debt Facilities Stride Property Limited Highlights As at As at • $81m of banking facility headroom available Debt facilities 30 Sep 2018 31 Mar 2018 • Drawn facilities increased by $11m, largely relating to the Waste Banking facility limit $400m $400m Management development at 1
Slide 17: Capital Management – Cost of Debt
Capital Management – Cost of Debt Stride Property Limited Key transactions As at As at Cost of debt 30 Sep 2018 31 Mar 2018 • $100m swaps terminated in April 2018, with average 2.8 years Weighted average cost of debt 4.66% 5.04% duration and an average rate of 4.1%, for a cost of $4.0m (incl. margin
Slide 18: Portfolio Overview
Portfolio Overview
Slide 19: Portfolio Overview
Portfolio Overview Stride Property Limited As at As at As at Lease Expiry Profile16 by Contract Rental17 Overview 30 Sep 18 31 Mar 18 30 Sep 17 Properties (no.) 26 26 29 Tenants (no.) 377 379 382 Net Lettable Area (sqm) 252,038 251,953 304,850 WALT (years) 5.1 5.1 4.9 Occupancy Rate (% by area) 98.9
Slide 20: Major Lease Transactions Completed
Major Lease Transactions Completed Stride Property Limited SIML completed 82 lease transactions for SPL during the six months to 30 September 2018: • 43 rent renewals over 44,793sqm for a total annual rental of $9.0m; • 20 lease renewals over 20,897sqm for a total annual rental of $3.2m; and • 19 ne
Slide 21: Remaining Lease Expiries FY19 & FY20
Remaining Lease Expiries FY19 & FY20 Stride Property Limited FY19 Net Lettable % of Contract Tenant Property Area (sqm) Rental22 Various Johnsonville Shopping Centre (50%), Wellington 2,737 1.48 DHL Express (New Zealand) 460 Rosebank Road, Auckland 2,617 0.34 North Beach Silverdale Centre, Auckland
Slide 22: Portfolio Occupancy (by area)
Portfolio Occupancy (by area) Stride Property Limited Net Lettable Occupancy Vacancy Area Occupancy (%) (sqm) (sqm) (%) Property 30 Sep 18 30 Sep 18 30 Sep 18 31 Mar 18 21-25 Teed Street, Auckland 100.0 - 4,088 97.9 Other 100.0 - 44,518 100.0 Office Total 100.0 - 48,606 99.8 15 Rockridge Avenue, Auc
Slide 23: Conclusion
Conclusion
Slide 24: Conclusion
Conclusion Performance • Completed asset disposals and higher valuations have contributed to lower bank LVR of 34.2% as at 30 September 2018, down from 38.8% as at 30 September 2017, and higher NTA of $1.88, up six cents from $1.82 as at 31 March 2018 • Management fee income expected to be higher ov
Slide 25: Appendices
Appendices
Slide 26: Appendix 1
Appendix 1 26 Stride Property Group (NS) | Interim Results Presentation for the six months ended 30 September 2018
Slide 27: Appendix 2
Appendix 2 23. Refer footnote 7 page 9. 27 Stride Property Group (NS) | Interim Results Presentation for the six months ended 30 September 2018
Slide 28: Thank you
Thank you Important Notice: The information in this presentation is an overview and does not Level 12, 34 Shortland Street contain all information necessary to make an investment decision. It is intended to Auckland 1010, New Zealand constitute a summary of certain information relating to the perfor
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