Stride Property Group · NZX:SPG
Stride Property — DNZ Property Fund — FY2015 Earnings Presentation
27 slides from Stride Property's earnings presentation, May 21, 2015
Slide 1: Annual Results for the Year Ended 31 March 2015
ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2015
Slide 2: Agenda & Content
Agenda & Content PAGE PETER ALEXANDER Highlights 3 Chief Executive Financial Performance 6 JENNIFER WHOOLEY Chief Financial Officer Capital Management 10 Portfolio Overview 12 PETER ALEXANDER Chief Executive Development Projects 18 Strategy Overview 20 Conclusion 22 Appendices 24 This DNZ Property F
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: Highlights: Financial Performance
Highlights (31 MARCH 2014 FIGURE IN BRACKETS) Financial Performance • Net rental income of $57.2m ($57.4m) down 0.2%. • Corporate expenses of $6.1m ($9.0m) down 32.2%. • Operating profit before other income and income tax of $39.6m ($35.0m) up 13.1%. • Net profit after income tax of $68.8m ($41.6m)
Slide 5: Highlights: Portfolio Developments and Divestments
Highlights (31 MARCH 2014 FIGURE IN BRACKETS) Portfolio Developments and Divestments • Net 5.1% property portfolio valuation increase on a like-for-like basis1. • NorthWest Shopping Centre due for completion in • Net Tangible Asset Backing (NTA) increased to $1.81 ($1.69), up 7.1%. October 2015. • 2
Slide 6: Financial Performance
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Slide 7: Financial Performance
Financial Performance CONSOLIDATED GROUP Change 31 Mar 2015 31 Mar 2014 $ millions $ millions $ millions % Net rental income 57.2 57.4 (0.1) (0.2) Management fee income 1.5 1.5 - (4.3) Corporate expenses (6.1) (9.0) 2.9 32.2 Operating profit before net finance expenses, other income and income tax 5
Slide 8: Distributable Profit
Distributable Profit CONSOLIDATED GROUP Change 31 Mar 2015 31 Mar 2014 $ millions $ millions $ millions % Net profit before income tax 77.3 49.0 28.3 57.7 NZ IFRS and other adjustments: - Net change in fair value of investment properties (38.4) (18.7) (19.8) (106.0) - Net change in fair value of oth
Slide 9: Financial Summary
Financial Summary As at 31 Mar 2015 As at 31 Mar 2014 Property value1 ($ millions) 872.4 780.2 Bank debt drawn ($ millions) 305.9 268.2 Bank loan to value ratio 35.1% 34.4% Equity ($ millions) 541.5 505.2 Shares on issue (millions) 297.2 296.9 NTA per share2 (refer Appendix 2) $1.81 $1.69 Adjusted N
Slide 10: Capital Management
CAPITAL MANAGEMENT 10
Slide 11: Capital Management
Capital Management As at As at As at Covenant 31 Mar 2015 31 Mar 2015 31 Mar 2014 Loan to Value Ratio Bank facility limit ≤ 50% 35.1% $400m $400m (Bank Debt / Property Values) (ANZ, BNZ, CBA, Westpac) Interest Cover Ratio Bank debt drawn $306m $268m ≥ 1.75 x 3.21x (EBIT / Interest and Financing Cost
Slide 12: Portfolio Overview
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Slide 13: Portfolio Summary
Portfolio Summary Portfolio Contract Rental1 by Sector As at 31 March 2015 Overview As at 31 Mar 2015 As at 31 Mar 2014 Industrial Properties 41 46 Tenants 281 292 19% Net Lettable Area (m2) 334,694 364, 916 Office WALT (years) 5.1 5.5 31% Occupancy Rate (by area) 96.6% 99.5% Bulk Retail Asset Valua
Slide 14: Portfolio Summary: Top Tenants and Lease Expiry Profile
Portfolio Summary Top 10 Tenants2 by Contract Rental1 Lease Expiry Profile3 by Contract Rental1 As at 31 March 2015 As at 31 March 2015 % of Portfolio Contract Rental % of Portfolio Contract Rental Financial 0% 2% 4% 6% 8% 10% 12% Year 0 2 4 6 8 10 12 14 16 18 2016 Bunnings 4 2017 Progressive 5 2018
Slide 15: Major Lease Transactions Completed
Major Lease Transactions Completed Annual Contract Tenant Property Commencement Area (m2) Term (years) Rental ($000) Countdown Mt Wellington Shopping Centre, Auckland Dec 2014 5,502 6 1,100 Countdown 230 Fenton Street, Rotorua Sep 2015 5,172 5 1,050 Unisys New Zealand 650 Great South Road, Auckland
Slide 16: Remaining Lease Expiries FY16 & FY17
Remaining Lease Expiries FY16 & FY17 FY16 Net Lettable % of Property Tenant Area (m2) Contract Rental Johnsonville Shopping Centre, Wellington Various (monthly tenancies contribute 1.41%) 5,509 1.73 35 MacLaggan Street, Dunedin The Warehouse (post balance date transaction) 6,433 1.38 65 Chapel Stree
Slide 17: Portfolio Occupancy 96.6% (by area)
Portfolio Occupancy 96.6% (by area) Occupancy (%) Vacancy (m2) Total Area (m2) Occupancy (%) Property 31 Mar 2015 31 Mar 2015 31 Mar 2015 31 Mar 2014 650 Great South Road, Auckland 84.3 1,311 8,335 90.1 1 Grey Street, Wellington 98.2 192 10,467 100.0 22 The Terrace, Wellington 89.2 516 4,780 100.0 O
Slide 18: Development Projects
DEVELOPMENT PROJECTS 18
Slide 19: Development Projects
Development Projects NorthWest Shopping Centre, Westgate, Auckland Johnsonville Shopping Centre, Wellington • Opening date October 2015. • Suburban shopping centre comprising in excess of 50 specialty stores, plus 11 other commercial properties adjoining the shopping • Gross floor area 34,000m² / Ne
Slide 20: Strategy Overview
STRATEGY OVERVIEW 20
Slide 21: Strategy Overview
Strategy Overview • DNZ is forming a portfolio of places with Enduring Demand, that attracts the highest demand in all market conditions, because it meets the needs of our customers, their staff, their visitors and our customers’ customers. • DNZ identifies attributes that drive strong performance f
Slide 22: Conclusion
CONCLUSION 22
Slide 23: Conclusion
Conclusion Execution of Strategy • Organisation restructure completed and Management Expense Ratio (MER) addressed. • Dividend increased from 9.0 cps for FY14 to 10.25 cps for FY15, a 13.9% increase. • Dividend annual growth of 2.5% targeted, with an expected cash dividend of at least 10.50 cps for
Slide 24: Appendices
APPENDICES 24
Slide 25: Appendix 1: Valuation Summary
Appendix 1 VALUATION SUMMARY 31 Mar 15 Revaluation Revaluation Market Cap Market Cap 31 Mar 15 Revaluation Revaluation Market Cap Market Cap Address Address Valuation Movement1 Movement1 Rate 2015 Rate 2014 Valuation Movement1 Movement1 Rate 2015 Rate 2014 $m % $000 % % $m % $000 % % 33 Corinthian D
Slide 26: Appendix 2: Bridge Graphs (FY14 to FY15 Movements)
Appendix 2 BRIDGE GRAPHS (FY14 TO FY15 MOVEMENTS) Operating profit before other income/(expenses) and income tax Investment Properties NTA Bridge $1.85 Net Contract Rental $0.13 ($0.03) $62m $0.13 $1.81 $61.2m ($2.8m) $1.80 ($0.09) $60m $0.9m ($1.8m) $1.75 $58.5m $0.3m $0.7m $58m ($0.02) $1.70 $1.69
Slide 27: Thank You
DNZ Property Fund Limited Level 2, 80 Greys Avenue, Auckland 1010 PO Box 6320, Wellesley Street, Auckland 1141 Tel: +64 9 912 2690 Fax: +64 9 912 2693 THANK YOU www.dnzproperty.com Important Notice: The information in this presentation is an overview and does not contain all information necessary to