Stride Property Group · NZX:SPG
Stride Property — DNZ Property Fund — H1 FY2013 Earnings Presentation
25 slides from Stride Property's earnings presentation, Nov 15, 2012
Slide 1: Interim Result for the Period Ended 30 September 2012
INTERIM RESULT FOR THE PERIOD ENDED 30 SEPTEMBER 2012
Slide 2: Agenda & Contents
2 Agenda & Contents Page Highlights 3 Paul Duffy Chief Executive Financial Performance 6 Jennifer Whooley Chief Financial Officer Capital Management 10 Portfolio Overview 12 Patrick O’Reilly GM Property Outlook 21 Paul Duffy Chief Executive Appendices 23 This DNZ Property Fund Limited Interim Result
Slide 3: Highlights
3 DNZ PROPERTY FUND LIMITED - INTERIM RESULT FOR THE PERIOD ENDED 30 SEPTEMBER 2012 - 15 NOVEMBER 2012
Slide 4: Interim Highlights
4 Interim Highlights (30 September 2011 figures in brackets) Share price trading at a premium to NTA Operating profit before tax of $15.4m ($13.6m) up 13% on prior period Net profit after tax of $12.1m ($8.2m) up 48% on prior period SHARE PRICE Distributable profit before tax of $15.3m ($13.0m) PREM
Slide 5: Interim Highlights
5 Interim Highlights (31 March 2012 figures in brackets) Occupancy increased to 99.0% (98.7%) Weighted average lease term (WALT) extended to 5.7 years (5.4 years) 105 lease transactions over 179,702m2 PORTFOLIO No major FY13 lease expiries remain - FY14 lease expiries at 5.4% OCCUPANCY Purchase of A
Slide 6: Financial Performance
6 DNZ PROPERTY FUND LIMITED - INTERIM RESULT FOR THE PERIOD ENDED 30 SEPTEMBER 2012 - 15 NOVEMBER 2012
Slide 7: Financial Performance – Consolidated Group
7 Financial Performance – Consolidated Group Actual Actual 30 Sep 2012 30 Sep 2011 Variance ($ millions) ($ millions) ($ millions) Net rental income 26.9 25.9 1.0 Management fee income 0.6 0.6 0.0 Corporate expenses (3.9) (3.8) (0.2) Operating profit before net finance expenses and income tax 23.6 2
Slide 8: Distributable Profit – Consolidated Group
8 Distributable Profit – Consolidated Group Actual Actual 30 Sep 2012 30 Sep 2011 Variance ($ millions) ($ millions) ($ millions) Net profit before tax 15.2 11.0 4.2 NZ IFRS and other adjustments: - Net change in fair value of investment properties 0.1 1.0 (0.9) - Net change in fair value of other i
Slide 9: Financial Summary
9 Financial Summary As at As at 30 Sep 2012 31 Mar 2012 ($ millions) ($ millions) Property values1 665.8 658.3 Bank debt drawn 271.4 267.3 Bank loan to value ratio 40.8% 40.6% Equity 380.2 381.0 Shares on issue 248.4 247.4 NTA per share2 $1.52 $1.53 Adjusted NTA per share3 (refer Appendix 1) $1.55 $
Slide 10: Capital Management
10 DNZ PROPERTY FUND LIMITED - INTERIM RESULT FOR THE PERIOD ENDED 30 SEPTEMBER 2012 - 15 NOVEMBER 2012
Slide 11: Capital Management
11 Capital Management As at As at As at Covenant Covenant 30 Sep 2012 Bank Facility 30 Sep 2012 31 Mar 2012 Loan to Value Ratio (Bank Debt / Property Values) < 50% 40.8% Facility limit (ANZ, BNZ, CBA) $300m $300m Interest Cover Ratio (EBIT / Interest and Financing Costs) > 1.75 x 2.87 x Balance draw
Slide 12: Portfolio Overview
12 DNZ PROPERTY FUND LIMITED - INTERIM RESULT FOR THE PERIOD ENDED 30 SEPTEMBER 2012 - 15 NOVEMBER 2012
Slide 13: Portfolio Summary
13 Portfolio Summary DNZ’s top 10 tenants represent 51% of total contract rental As at As at Overview 30 Sep 2012 31 Mar 2012 Properties 51 51 Tenants 259 252 Net Lettable Area (m2) 377,350 379,965 WALT (years) 5.7 5.4 Occupancy Rate (by area) 99.0% 98.7% Asset Valuation $665.8m $658.3m Note: Contra
Slide 14: Major Lease Transactions Completed
14 Major Lease Transactions Completed 105 lease transactions during the six month period Annual Contract Tenant Property Commencement Area (m2) Term (years) Rental ($) Value Tyres 62 Columbia Avenue, Christchurch Aug 2012 12,665 10 1,000,000 The Warehouse 35 MacLaggan Street, Dunedin Aug 2012 6,433
Slide 15: Lease Expiry Profile
15 Lease Expiry Profile As at 30 September 2012 DNZ PROPERTY FUND LIMITED - INTERIM RESULT FOR THE PERIOD ENDED 30 SEPTEMBER 2012 - 15 NOVEMBER 2012
Slide 16: Remaining Lease Expiries FY13
16 Remaining Lease Expiries FY13 % of Property Tenant NLA (m2) Contract Rental Johnsonville Retail, Wellington Various (Rolling Monthly) 3,784 1.26 Balance Various 1,366 0.39 FY13 TOTAL 1.65 1.65% of contract rental expiries remain in FY13 (10.86% as at 31 March 2012) 10.86% 1.65% DNZ PROPERTY FUND
Slide 17: Major Lease Expiries FY14
17 Major Lease Expiries FY14 % of Property Tenant NLA (m2) Contract Rental Johnsonville Retail, Wellington Various 2,098 0.60 1 Grey Street, Wellington Westpac 4,266 2.81 33 Customhouse Quay, Wellington Wellington Waterfront 505 0.46 Bay Central Shopping Centre, Tauranga Chamber of Commerce 745 0.29
Slide 18: Portfolio Occupancy – 99.0%
18 Portfolio Occupancy – 99.0% Occupancy (%) Vacancy (m2) Total Area (m2) Occupancy (%) Property 30 Sep 2012 30 Sep 2012 30 Sep 2012 31 Mar 2012 7 - 9 Fanshawe Street, Auckland 100.0 0 4,806 94.8 650 Great South Road, Greenlane, Auckland 92.8 601 8,387 92.8 8 Rockridge Avenue, Penrose, Auckland 73.9
Slide 19: Seismic Review - Completed
19 Seismic Review - Completed Engineering reviews of all DNZ properties have been completed All tenants have received letters with ratings/status of their property Four of the five assets classified as earthquake “prone” are sites held for potential redevelopment The five earthquake “prone” assets r
Slide 20: Acquisitions
20 Acquisitions 51 Corinthian Drive, Albany, Auckland Purchase price $12.9m Three level, 3,297m2 plus basement parking New nine year lease to Westpac (76% of the property) Lot 1 DP 429904, Corinthian Drive, Albany, Auckland Purchase price $5.7m (settlement January 2013) 1.4 hectares bare land Adjace
Slide 21: Outlook
21 DNZ PROPERTY FUND LIMITED - INTERIM RESULT FOR THE PERIOD ENDED 30 SEPTEMBER 2012 - 15 NOVEMBER 2012
Slide 22: Conclusion
22 Conclusion Strategy Continue to increase ownership in the Auckland region On-going pre-development planning for Johnsonville Shopping Centre Pro-active property management with tenant relationships paramount Finalise Penrose development opportunities Directors will review DRP on a quarterly basis
Slide 23: Appendices
23 DNZ PROPERTY FUND LIMITED - INTERIM RESULT FOR THE PERIOD ENDED 30 SEPTEMBER 2012 - 15 NOVEMBER 2012
Slide 24: Appendix 1
24 Appendix 1 DNZ PROPERTY FUND LIMITED - INTERIM RESULT FOR THE PERIOD ENDED 30 SEPTEMBER 2012 - 15 NOVEMBER 2012
Slide 25: Important Notice
Important Notice: Certain statements in this presentation constitute forward-looking statements. DNZ Property Fund Limited Such forward-looking statements involve known and unknown risks, uncertainties, assumptions Level 2, 80 Greys Avenue, Auckland 1010 and other factors (many of which are beyond t