Investore Property Ltd. · NZX:IPL
Investore Property — Debt Investor Presentation (March 2018)
26 slides from Investore Property's debt investor presentation, Mar 5, 2018
Slide 1: Investore Property Limited Retail Bond Presentation
Investore Property Limited Retail Bond Presentation 5 March 2018 Arranger & Joint Joint Lead Lead Manager Managers
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Investore Property Limited (Investore) in relation to the offer of senior This presentation may contain certain forward-looking statements with respect to the financial condition, results secured fixed rate bonds described in this presentation (Bonds
Slide 3: Contents
Contents Bunnings Warehouse 446 Te Rapa Rd Hamilton Overview of the Offer 4 Business Summary 5 Investment Portfolio 9 Financial Overview 13 Bond Offer 17 Investment Highlights 22 Investore Property Limited – Retail Bond Presentation
Slide 4: Overview of the Offer
Overview of the Offer • Investore is offering up to $75m (plus up to $25m in oversubscriptions) of senior secured fixed rate 6 year Bonds • The net proceeds of the Offer will be used to repay a portion of Investore’s existing bank debt, providing diversification of funding sources and extending the
Slide 5: Business Summary
Business Summary Countdown Browns Bay Auckland
Slide 6: Overview and Credit Strengths
Overview and Credit Strengths Investore Property Limited Credit Strengths Managed by SIML Stride Investment Management Limited • New Zealand’s only NZX listed • Long term leases – average property company with an WALT of 13.1 years1 • Specialised real estate investment investment focus on large form
Slide 7: Strategy
Strategy Nationally recognised Long lease terms High occupancy tenants Large format retail • Large, free-standing, rectangular and generally single-floor structures • Lower maintenance and capital expenditure requirements • Anchor tenant or tenants typically occupy more than 90% of net lettable area
Slide 8: Active Management
Active Management Oct 15 Investore established by Stride with a specialised large format retail portfolio Nov 15 – Jun 16 Acquired 25 large format retail properties Jul 16 Demerged from Stride, IPO, $185m capital raised Jul 16 – Sep 16 Acquired 14 further large format retail properties Feb 17 Animat
Slide 9: Investment Portfolio
The Warehouse 35 MacLaggan St Dunedin Investment Portfolio
Slide 10: Portfolio Update
Portfolio Update Material events subsequent to 30 September 2017 interim reporting period: • Property acquisitions: Investore purchased four properties for an aggregate purchase price of $79.5m (of which $78.5m was funded by debt) • Property disposals: Investore agreed to sell two properties for an
Slide 11: Portfolio Summary
Portfolio Summary As at 30 Sep 17 Adjusted1 Tenant diversification based on Contract Rental1 Overview General Distributors (Countdown) Properties 39 40 72% Tenants 74 78 Bunnings 10% Net lettable area (sqm) 174,702 209,980 Foodstuffs Occupancy rate (by area) 99.9% 99.9% 6% Specialty WALT (years) 13.
Slide 12: Geographic Diversification
Geographic Diversification Portfolio by location1 Diversification improving with active management • 56% of Contract Rental 1 from main centres vs 44% from regional centres • Development of regional assets such as Invercargill Animates • Further development opportunities at recently acquired Timaru
Slide 13: Financial Overview
Countdown Browns Bay Auckland Financial Overview
Slide 14: Financial Highlights
Financial Highlights As at 30 Sep 17 Adjusted2 For the six months ended 30 September 20171 Investment Properties $662.7m $738.3m • Net rental income of $22.2m (FY17: $35.0m) Total Assets $669.1m $744.8m • Corporate expenses of $2.7m (FY17: $4.7m) Bank Borrowings • Profit before other income and inco
Slide 15: Capital Management
Capital Management As at As at Bank Debt 30 Sep 17 Bank Covenants 30 Sep 17 Adjusted1 Facility limit (ANZ, BNZ, CBA, Westpac) $370m Loan to Value Ratio ≤ 65% 39.4% 41.6% Facility drawn $307m1 Interest Cover Ratio ≥ 1.75x 3.4x - Weighted average > 6.0 13.8 13.1 Weighted maturity of facility 2.7 years
Slide 16: Offer Outcomes: Debt Maturity Profile
Offer Outcomes • Net proceeds of the Offer will be used to repay and cancel a portion of Investore’s existing bank debt ✓ Diversification of funding sources – 32.5% of drawn debt from non-bank funding following the issue of the Bonds ✓ Extended tenor - average tenor of debt extended to 3.5 years, fo
Slide 17: Bond Offer
Bond Offer
Slide 18: Security
Security • The Bonds are secured by first ranking Mortgages granted by Investore over its properties and by security interests over Investore’s other assets under a General Security Deed (subject to limited exceptions) • As at 30 September 2017, assuming the Bonds had been issued at that time, liabi
Slide 19: Covenants and Default
Covenants and Default • The Loan to Value Ratio under the Trust Deed limits the ability of Investore to borrow money which is secured by the Mortgages and the General Security Deed to no more than 65% of the total value of the Mortgaged Properties (including, in respect of any development, capital e
Slide 20: Key Terms of the Offer
Key Terms of the Offer Summary Detail Issuer Investore Property Limited Description of the Bonds Senior secured, fixed rate bonds The Bonds are secured by first ranking Mortgages granted by Investore over the Mortgaged Properties and by security interests over Security Investore’s other assets under
Slide 21: Key Dates of the Offer
Key Dates of the Offer Key event Date PDS lodged Monday, 5 March 2018 Firm bids due 10:30am, Tuesday, 20 March 2018 Interest Rate set / Bookbuild closes Tuesday, 20 March 2018 Offer opens Wednesday, 21 March 2018 Offer closes 5:00pm, Thursday, 12 April 2018 Issue Date Wednesday, 18 April 2018 Expect
Slide 22: Investment Highlights
Investment Highlights NZX listed with focus on large format retail property Geographically diversified portfolio totalling $738.3m1 Long term leases – average WALT of 13.1 years1 Dependable income streams Nationally recognised quality tenants High occupancy rate - 99.9%1 Strong management and corpor
Slide 23: Q&A
Q&A
Slide 24: Appendices
Appendices
Slide 25: Board of Directors
Board of Directors Mike Allen Kate Healy Tim Storey John Harvey Chairman & Independent Director Independent Director Director SIML Nominee Director SIML Nominee • Extensive experience in • Previously Partner, Minter Ellison • More than 30 years’ experience • Over 35 years’ experience as a investment
Slide 26: Management Team
Management Team Philip Littlewood Jennifer Whooley Louise Hill Chief Executive Officer Chief Financial Officer General Manager Corporate Services • 17 years’ experience in • 25+ years’ experience • 20+ years’ legal investment property in the property industry experience, with 6 years management expe
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