Investore Property Ltd. · NZX:IPL
Investore Property — FY2023 Earnings Presentation
26 slides from Investore Property's earnings presentation, May 19, 2023
Slide 1: Annual Results Presentation
Annual Results Presentation For the year ended 31 March 2023 19 May 2023
Slide 2: Contents
Contents Financial overview 03 Key metrics 04 Portfolio optimisation 05 Portfolio 06 Sustainability 13 Financial performance 14 Capital management 18 Countdown Newtown, Wellington Looking ahead 21 Investore Property Limited | FY23 Annual Results Presentation 2
Slide 3: Financial overview
Countdown Greenlane, Auckland Financial overview For the 12 months ended 31 March 2023 (FY23) Profit before other (expense)/ income and income tax $35.2m up $0.9m or 3% from FY22 Loss after income tax $(150.2)m down from FY22 ($118.2m profit after income tax), due to a net investment property devalu
Slide 4: Key metrics: Portfolio metrics and Capital management
Portfolio metrics Capital management as at 31 March 2023 $1.1bn 5.70% $75m Portfolio valuation1 Average portfolio2 capitalisation rate Bank facilities extended a net valuation decrease of 14.9% or $(185.2)m over up 90bp from 31 March 2022 12 months to 31 March 2023 $28.1m 8.1 years 4.0% Total acquis
Slide 5: Portfolio optimisation
Portfolio optimisation Investore completed a number of strategic acquisitions during FY23, together with progressing initiatives to enhance its existing portfolio As part of its portfolio optimisation strategy, Investore has undertaken strategic acquisitions and portfolio improvement initiatives dur
Slide 6: Portfolio
Portfolio Investore Property Limited | FY23 Annual Results Presentation 6
Slide 7: Active portfolio management
Active portfolio management Key portfolio activities Investment portfolio metrics ✓ 82 rent reviews completed over 130,144sqm resulting in a As at As at 3.3% increase on previous rentals 31 Mar 231 31 Mar 22 ✓ Of the 82 rent reviews, 33 CPI rent reviews completed, Investment portfolio value2 ($m) 1,
Slide 8: Long dated lease expiry profile
Long dated lease expiry profile Lease Expiry Profile2 by Contract Rental1 Long portfolio WALT of 8.1 years, with 75% of As at 31 Mar 23 Contract Rental1 expiring in FY30 or beyond FY24 WALT 4.8% Contract Rental expiring: 8.1 years • Countdown, Cnr Anglesea & Liverpool Streets, Hamilton (2.3%) 29.1%
Slide 9: Key tenants meeting daily needs
Key tenants meeting daily needs Investore's portfolio consists of quality, well-located large format retail properties, such as supermarkets, hardware stores and general merchandise. Investore's portfolio has a high proportion of tenants (71% by Contract Rental1) serving everyday needs, providing re
Slide 10: Anchor tenants underpin income
Anchor tenants underpin income Anchor tenants continue to represent a high proportion (87%) of Investore’s total Contract Rental1, providing Investore with security of income across varying market conditions Anchor tenant classification by Contract Rental1 Geographic diversification by Contract Rent
Slide 11: National portfolio
National portfolio Values refer to stabilised investment portfolio, which excludes properties categorised as “Development and Other” in note 2.2 of the consolidated annual financial statements. 1. See footnote 4 on page 7. 2. Net Lettable Area. 11
Slide 12: Turnover rental
Turnover rental Countdown supermarket portfolio turnover mix (weighted by MAT)2 • The leases for Countdown stores, which make up 64% of the portfolio's Contract Rental1, include a turnover rental component, 40% 42% 38% 37% 39% where additional rent is paid once store sales, or Moving Annual 49% Turn
Slide 13: Sustainability
Sustainability Investore has continued to progress its sustainability objectives during FY23 and is presenting a separate sustainability report, including a greenhouse gas emissions inventory, for FY23 16 properties owned by Investore Investore has very low scope 1 and 2 emissions achieved a Green S
Slide 14: Financial performance
Countdown Browns Bay, Auckland Financial performance Investore Property Limited | FY23 Annual Results Presentation 14
Slide 15: Financial performance
Financial performance Change 31 Mar 23 31 Mar 22 $m $m $m % Net rental income 60.3 58.3 +2.0 +3.4 Corporate expenses (8.9) (10.0) +1.1 +11.1 Profit before net finance expense, other (expense)/income and income tax 51.4 48.3 +3.1 +6.4 Net finance expense (16.2) (14.0) (2.2) (15.3) Profit before other
Slide 16: Distributable profit
1 Distributable profit Change 31 Mar 23 31 Mar 22 $m $m $m % (Loss)/profit before income tax (150.1) 125.8 (275.9) (219.3) Non-recurring, and/or non-cash items, and other adjustments: - Net change in fair value of investment properties 185.2 (91.0) +276.3 +303.5 - Spreading of fixed rental increases
Slide 17: Financial summary
Financial summary As at As at 31 Mar 23 31 Mar 22 Change Investment property value ($m) 1,062.1 1,201.3 (139.2) Drawn debt ($m) (387.6) (355.0) +32.6 Loan to Value Ratio (LVR) 36.5%1 29.5%2 +7.0% Equity ($m) 675.0 855.0 (180.0) Shares on issue (millions) 367.5 368.1 (0.6) Net Tangible Assets (NTA) p
Slide 18: Capital management
Capital management Bunnings, Rotorua Investore Property Limited | FY23 Annual Results Presentation 18
Slide 19: Proactive capital management
Proactive capital management • $75m bank facilities extended to November 2025; no bank debt As at As at now maturing until FY26 Debt facilities 31 Mar 23 31 Mar 22 • WALT bank covenant removed and LVR covenant reduced from Debt facilities limit 65% to 52.5% (ANZ, CCB, Westpac, ICBC), $475m $475m inc
Slide 20: Hedging and cost of debt
Hedging and cost of debt As at As at • As at 31 March 2023, 92% of drawn debt is hedged or Cost of debt 31 Mar 23 31 Mar 22 subject to a fixed interest rate Weighted average cost of debt • Investore considers it is well protected against changes (incl. current interest rate 4.01% 3.77% in interest r
Slide 21: Looking ahead
Looking ahead Countdown, Rototuna Investore Property Limited | FY23 Annual Results Presentation 21
Slide 22: Looking ahead
Looking ahead • Investore remains committed to prudent capital management in the current economic environment • Investore today announces capital management initiatives to manage gearing over the near term: o An intention to sell select, non-core assets of $25m - $50m, provided appropriate value can
Slide 23: Supplementary Information
Supplementary Information 4 Carr Road, Auckland Investore Property Limited | FY23 Annual Results Presentation 23
Slide 24: Appendix A
Appendix A Profit before other (expense)/income and income tax $0.4m $0.9m $1.5m $1.2m $35.2m ($0.3m) ($0.1m) $34.3m ($2.7m) 31-Mar-22 Net rental Net rental Net rental Net rental Higher net Lower Higher 31-Mar-23 increase from decrease from increase from increase from finance performance administrat
Slide 25: Appendix B
Appendix B Net Contract Rent1 $0.7m $0.4m $1.0m ($0.4m) $61.8m $60.2m As at 31-Mar-22 Acquisitions Turnover Rent reviews Other As at 31-Mar-23 Investment Properties (excl. lease liabilities) $1,201.3m $34.1m $7.3m $0.1m $1,062.1m $10.3m ($0.1m) ($185.2m) ($5.7m) As at Net change in Capital Purchase
Slide 26: Thank you
Thank you Level 12, 34 Shortland Street Auckland 1010, New Zealand PO Box 6320, Victoria Street West, Auckland 1142, New Zealand P +64 9 912 2690 W investoreproperty.co.nz Important Notice: The information in this presentation is an overview and does not contain all information necessary to make an