Slide 1: Interim Results for the six months ended 30 September 2019
Stride Property Group Interim Results For the six months ended 30 September 2019 STRIDE.
Slide 2: Contents
Contents Page Highlights 3 Financial Performance 10 Capital Management 15 Portfolio Overview 18 Conclusion 26 Appendices 28 Stride Property Group I Interim Results Presentation for the six months ended 30 September 2019 2
Slide 3: Highlights
Highlights
Slide 4: Performance
Performance Stride Property Group (Stride) - Consolidated (Six months ended 30 September (HY19) figures in brackets) Earnings Profit after income tax • Net rental income of $28.4m ($27.9m), up $0.4m • Profit before income tax of $44.8m ($44.0m), up $0.8m $37.4m • Profit after income tax of $37.4m ($
Slide 5: Places
Places Stride Property Limited (SPL) (As at 31 March 2019 figures in brackets) Positive portfolio activity Developments • Portfolio occupancy 98.2% (97.6%), up 0.6% Development projects totalling over $200m currently being managed by SIML. For SPL, these projects include: • Weighted average lease te
Slide 6: People
People Board Refresh – Stride • Appointment of Nick Jacobson to the Stride Boards in July 2019. Nick has extensive international real estate advisory and capital markets experience • David Van Schaardenburg retired as a director on 30 August 2019 after 9 years as a director Our people • People conti
Slide 7: Products - existing
Products - existing Investore Property Limited (Investore) Portfolio Composition by Value4 • SPL owns a 19.9% shareholding • Acquisition of Countdown New Brighton, Christchurch, completed in August for $5.75m, at an initial yield of 7.2% $999m $751m $491m • Countdown Dunedin South disposal completed
Slide 8: Products - new
Products - new Creation of Industre Stride’s Product strategy: • Industre will be Stride’s sector-specific investment management product focussed on the industrial property sector in New Zealand, with a majority weighting to the Auckland market. The vision for Industre is to Grow its directly-held p
Slide 9: SIML AUM growth
SIML AUM growth Stride Investment Management Limited Significant growth of SIML’s Assets Under SPG external AUM growth Management (AUM) $102m Stride has recently announced two strategic initiatives in order to $265m further develop its Investment Management business, including: 1. The creation of In
Slide 10: Financial Performance
Financial Performance
Slide 11: Financial Performance
Financial Performance Stride - Consolidated Unaudited Unaudited Change 30 Sep 19 30 Sep 18 $m $m $m % Net rental income 28.4 27.9 +0.4 +1.5 Management fee income 9.2 7.3 +1.9 +25.8 Corporate expenses (11.6) (9.4) (2.2) (23.9) Profit before net finance expense, other income/(expense) and income tax 2
Slide 12: Distributable Profit
Distributable Profit6 Stride - Consolidated Unaudited Unaudited Change 30 Sep 19 30 Sep 18 $m $m $m % Profit before income tax 44.8 44.1 +0.8 +1.7 Non-recurring and non-cash adjustments: - Net change in fair value of investment properties (24.8) (23.6) (1.2) (5.1) - Reversal of the land lease liabil
Slide 13: AFFO Distributable Profit
AFFO Distributable Profit Stride - Consolidated Unaudited Unaudited Change 30 Sep 19 30 Sep 18 $m $m $m % Distributable profit after current income tax 19.3 19.6 (0.4) (1.8) Adjustments to funds from operations: - Maintenance capital expenditure (3.8) (3.1) (0.7) (21.6) Adjusted Funds From Operation
Slide 14: Financial Summary
Financial Summary Stride - Consolidated Unaudited Audited 30 Sep 19 31 Mar 19 Change $m $m $m Portfolio valuation7 999.0 966.3 32.7 Bank debt drawn 349.6 332.9 16.8 Bank loan to value ratio (LVR) (%) 35.0 34.4 0.5 Equity 721.4 704.2 17.2 Shares on issue (million) 365.4 365.3 0.1 NTA per share $1.97
Slide 15: Capital Management
Capital Management
Slide 16: Capital Management – Debt Facilities
Capital Management – Debt Facilities SPL As at As at Debt facilities 30 Sep 2019 31 Mar 2019 Highlights • Next debt facility maturing is $200m in June 2021 (FY22) Banking facility limit $400m $400m (ANZ, BNZ, CBA, Westpac) • Drawn facilities increased by $17m, largely due to Waste Management develop
Slide 17: Capital Management – Cost of Debt
Capital Management – Cost of Debt SPL As at As at Cost of debt 30 Sep 2019 31 Mar 2019 Highlights • $40m of swaps matured with a weighted average rate of 3.92% Weighted average cost of debt 4.01% 4.63% • Hedging has fallen from 77% of drawn debt to 61% (incl. margins & line fees) Weighted average in
Slide 18: Portfolio Overview
Portfolio Overview
Slide 19: Portfolio Overview
Portfolio Overview SPL As at As at SPL Lease Expiry 21.2% 20.4% Overview 30 Sep 19 31 Mar 19 Profile11 by Contract Properties (no.) 26 26 Rental10 13.8% 13.4% Tenants (no.) 391 381 7.1% 3.8% Net Lettable Area (sqm) 254,318 252,014 ● 31 Mar 2019 Net Contract Rental10 ($m) 57.5 58.1 ● 30 Sep 2019 FY20
Slide 20: Industrial
Industrial SPL As at As at Overview 30 Sep 19 31 Mar 19 Highlights • Net valuation movement +$18.0m or +6.0% in HY20 Properties (no.) 12 11 • 9 rent reviews over 35,863sqm for a total annual rental of $4.3m, increase of Tenants (no.) 27 21 +2.3% on an annualised basis Net Lettable Area (sqm) 114,118
Slide 21: Office
Office SPL As at As at Overview 30 Sep 19 31 Mar 19 Highlights • Net valuation movement +$7.7m or +4.1% for HY20 Properties (no.) 7 8 • 20 rent reviews over 10,386sqm for a total annual rental of $4.0m, increase Tenants (no.) 68 70 of +4.8%, or +2.9% on an annualised basis Net Lettable Area (sqm) 37
Slide 22: Retail: Large Format Retail
Retail: Large Format Retail SPL As at As at Overview 30 Sep 19 31 Mar 19 Highlights • Net valuation movement -$1.0m or -0.8% for HY20, contributed to by a net Properties (no.) 3 3 decline in 2 Carr Road, Auckland, of -$2.1m (-4.5%) due to seismic works Tenants (no.) 50 49 required Net Lettable Area
Slide 23: Retail: Shopping Centres
Retail: Shopping Centres SPL As at As at Overview 30 Sep 19 31 Mar 19 Highlights • Net valuation movement +$0.4m or +0.1% for HY20 Properties (no.) 4 4 • 38 rent reviews over 7,823sqm for a total annual rental of $3.5m, an increase Tenants (no.) 246 241 of +3.3% on an annualised basis Net Lettable A
Slide 24: SPL Portfolio Metrics by sector
SPL Portfolio Metrics by sector SPL SPL’s directly-held portfolio SPL’s look-through portfolio19 (following establishment of Industre and (following establishment of Industre and divestment of large format retail assets) divestment of large format retail assets) Office 20% Retail Shopping Office Cen
Slide 25: SPL Portfolio Metrics
SPL Portfolio Metrics SPL SPL’s directly-held and look-through portfolio metrics • Following the establishment of Industre and the divestment of large format retail assets, Stride will hold its investments in industrial and large format retail property through Industre and Investore respectively • W
Slide 26: Conclusion
Conclusion
Slide 27: Conclusion
Conclusion Looking ahead • Stride’s strategy for its investment management business is to establish a group of commercial property investment management products to provide growth in our investment management business and continue to review opportunities in markets adjacent to core commercial proper
Slide 28: Appendices
Appendices
Slide 29: Appendix 1: Portfolio by Sector
Appendix 1: Portfolio by Sector Overview Total Portfolio1 Shopping Office Industrial Large Format Retail Centres Directly – held portfolio Properties (no.) 11 7 4 Tenants (no.) 274 68 206 Net Contract Rental ($m) 35.8 13.2 22.6 WALT (years) 4.7 4.7 4.6 Occupancy Rate (% by area) 95.9 95.8 96.0 Portf
Slide 30: Appendix 2
Appendix 2 Net contract Rental Stride Property Group I Interim Results Presentation for the six months ended 30 September 2019 30
Slide 31: Contact details and important notice
Level 12, 34 Shortland Street Auckland 1010, New Zealand PO Box 6320, Wellesley Street Auckland 1141, New Zealand P +64 9 912 2690 W strideproperty.co.nz No representation or warranty, express or implied, is made as to the accuracy, Important Notice: The information in this presentation is an overvi