Slide 1: Asset Plus Limited Results Presentation for the year ended 31 March 2020
0 6 2 0 2 0 Asset Plus Limited Results Presentation for the year ended 31 March 2020 Asset Plus 2020 Result Assetplusnz.co.nz
Slide 2: 2020 Update
2020 Update • Net rental income of $10.47m up $1.32m or 14% from FY19 • Total loss for the year net of tax of $14.69m (FY19 profit of $3.80m) • AFFO1 of $4.74m ($4.74m in FY19) No dividend is to be paid for Unrealised loss on the fair value of Purchase of 35 Graham Street the fourth quarter due to t
Slide 3: Impact of COVID-19
Impact of COVID‐19 • The COVID‐19 pandemic has provided material future uncertainty in the real estate market. • As a result the investment property portfolio has materially reduced in value by $19.1m as at 31 March 2020. • Rental abatements and relief applied to the April – June 2020 quarter are ex
Slide 4: Key Metrics
Key Metrics as at 31 March 2020 Properties WALE LVR Portfolio Value 4 3.16 years 34.3% (Mar‐192: 3) (Mar‐192: 5.5) (Mar‐192: 8.5%) Number of Tenants Occupancy NTA $142.1m1 (Mar‐192: $122.8m) 71 98.3% $0.567 (Mar‐192: 76) (Mar‐192: 96.7%) (Mar‐192: $0.694) 1. Excludes $1.51m of WIP costs in relation
Slide 5: Strategic objectives
Strategic objectives Objective Delivering on the Objectives The Graham Street and Munroe Lane developments (should they proceed) are 01 expected to increase the value of the portfolio, reducing the Management Increase the scale of the portfolio Expense Ratio due to increased scale. The Munroe Lane d
Slide 6: Financial Performance
Financial Performance Year ended Year ended Mar‐20 Mar‐19 Var Var $m $m $ % Gross Income 14.47 13.35 1.12 8% • Net rental revenue up $1.32m or 14% primarily due to the acquisition of 35 Graham St (June 2019) partly offset by the Direct Property Operating Expenses (4.00) (4.20) 0.20 5% divestment of
Slide 7: Net Rental Performance
Net Rental Performance Year ended Year ended • Eastgate is $0.22m / 6% lower due to higher non Mar‐20 Mar‐19 Var Var $m $m $m % recoverable operating expenses and lease commissions Eastgate Shopping Centre 3.48 3.70 (0.22) (6%) recognised. Stoddard Rd 2.51 2.38 0.13 5% • Stoddard Road net rental is
Slide 8: Administration Expenses and Transaction Costs
Administration Expenses and Transaction Costs Year ended Year ended Mar‐20 Mar‐19 Var Var $m $m $m % Management Fees 0.82 0.72 (0.10) (14%) Directors Fees 0.30 0.30 ‐ 0% Audit Fees 0.11 0.13 0.02 15% Personnel costs ‐ 0.03 0.03 100% Professional Fees 0.28 0.37 0.09 24% Other Administration Costs 0.1
Slide 9: Balance Sheet and Funding
Balance Sheet and Funding Year ended Year ended Mar‐20 Mar‐19 $m $m Cash 0.1 0.8 • NTA of 56.7 cents per share down 18 cents from 2019 primarily Investment Properties* 143.6 94.1 due to the net fair value loss of investment property and transaction costs. Properties Held for Sale ‐ 28.9 • Drawn bank
Slide 10: Portfolio Summary
Portfolio Summary as at 31 March 2020 Eastgate, Christchurch Stoddard Rd, Auckland Graham Street, Auckland Munroe Lane, Auckland Valuation ($m)1 $46.95 (Mar‐19: $54.5) $37.5 (Mar‐19: $39.5) $50.1 (On acquisition: $58.0) $7.5 (On acquisition: $7.25) WALE (years) 4.53 (Mar‐19: 5.07) 4.00 (Mar‐19: 4.02
Slide 11: Valuation Movements
Valuation Movements Capex & Other Fair Value Draft Valuations Fair Value Final Valuations Acquisitions Final Valuations Mvmts Movement (Pre‐capital raise) Movement Mar‐19 Mar‐20 Mar‐20 $m $m $m $m $m $m $m Eastgate 54.6 ‐ 1.2 (3.6) 52.2 (5.3) 47.0 22 Stoddard Road 39.5 ‐ (0.0) 3.0 42.5 (5.0) 37.5 35
Slide 12: Eastgate
Eastgate • Bargain Chemist committed to a 6 year lease at the Centre from 13 May 2020. Several tenancies have been combined to meet the circa 800m² space requirements for the tenant. • Seismic upgrade works for “The Warehouse” building were carried out and completed. All buildings at Eastgate are no
Slide 13: Stoddard Road
Stoddard Road • A total of 6 lease renewals were completed in 2020 (17% of the total rental income for the Centre). • WALT increased from 4.02 years in 2019 to 4.12 years as a result of renewals during the year, and net contract income has increased by $70,369 p.a. as a result of rent reviews. • COV
Slide 14: 35 Graham Street, Auckland CBD
35 Graham Street, Auckland CBD Development update • On 28 June 2019, Asset Plus purchased 35 Graham Street, Auckland for $58m from Auckland Council. • The purchase was in line with Asset Plus’ ‘Yield plus Growth’ investment strategy, providing the benefit of an existing large structure, with potenti
Slide 15: Potential Munroe Lane Development
Artist impression of the Munroe Lane Development Potential Munroe Lane Development • On 20 December 2019, Asset Plus announced the development of a 26,500m2 (GFA) / 15,100m2 (NLA) building in Albany, 63% pre‐leased, with a 15‐year lease to Auckland Council. • Resource consent has been granted but th
Slide 16: Munroe Lane, Albany
Munroe Lane, Albany Proposed Development Overview • 6 levels plus basement carparking in the heart of Albany with extensive car parking. Munroe Lane – Indicative Metrics • Large floor plates of ~3,000 m2 each. Gross Floor Area 26,500 m2 • ~750m2 of expected Café / Food & Beverage / Retail outlets on
Slide 17: Outlook
Outlook • The impact of COVID‐19 further reinforces the adopted approach towards a diversified, value‐add strategy that ultimately will increase the portfolio size. • The Manager continues to focus on working with retail tenants to navigate these uncertain times and preserve value in the longer term
Slide 18: Appendix 1: Reconciliation of forecast net profit after tax to AFFO
Appendix 1: Reconciliation of forecast net profit after tax to AFFO Year ended Year ended Mar‐20 Mar‐19 Var Var $m $m $m % Total Comprehensive Income Net of Tax (14.69) 3.80 (18.49) (487%) Add Back Loss/ (Gain) From Sales of Investment (0.05) 0.92 (0.97) (105%) Property Fair value (gain) / loss on i
Slide 19: Appendix 2: Lease Expiries
Appendix 2 : Lease Expiries 38% Lease expiry by rental income ($000) 4,642 13% 14% 11% 1,518 1,663 6% 9% 1,382 3% 1,044 2% 2% 2% 669 0% 237 419 243 Vacant Mar‐21 Mar‐22 Mar‐23 Mar‐24 Mar‐25 Mar‐26 Mar‐27 Mar‐28 Mar‐29 Mar‐30 Lease expiry in year ended 31 March 19 Assetplusnz.co.nz Asset Plus 2020 Re
Slide 20: Important Notice
Important Notice This presentation contains not only a review of operations, but may also contain some forward looking statements (including forecasts and projections) about Asset Plus Limited (APL) and the environment in which APL operates. Because these statements are forward looking, APL’s actual