Slide 1: Annual Results Briefing FP24
= TO THE Tire “i RESULTS BRIEFING
Slide 2: Note on six-month FP24 reporting period
Please note: the results presented are for the six-month period from 1 January to 30 June 2024 (referred to as Financial Period 24, or FP24). FP24 is a six-month “full year” financial period, as opposed to the usual 12-month “full year” financial period presented in an annual report, due to the chan
Slide 3: 01. Highlights
REVIEW 8.
Slide 4: Section divider
Slide 5: FP24 highlights
PORTFOLIO UNDER-RENTING PROVIDES EMBEDDED GROWTH: Industrial property portfolio valuation of ~$2.1bn has stabilised and is ~16% under-rented, $36.3m of contract rent reviewed during FP24 delivering an average annualised uplift of 5.7%, $5.9m of contract rent leased during FP24 at an average of 25.3%
Slide 6: 02. Portfolio
Slide 7: Portfolio Snapshot
Portfolio Annual Snapshot Results Briefing FP24 91 PROPERTIES 126 98. 6 % 99.7 $ MILLION CONTRACT 5.07 YEARS WEIGHTED AVERAGE TENANTS OCCUPANCY LEASE TERM RENT (WALT) DEC 2023 : 92 DEC 2023 : 126 DEC 2023 : 100% DEC 2023 : $96.6M DEC 2023 : 5.06 YEARS INCLUDING BROWNFIELD LEASES: 91 127 98.7 % $106.
Slide 8: Weighted Average Lease Term
▪ Total of $11.6m of contract rent secured during FP24 W eighted A verage ▪ $2.1m of contract rent secured during FP24 relates to across FP24 L ease newly acquired or developed properties1 leasing transactions T erm ▪ Of the $9.5m of stabilised contract rent secured during FP24, rents were agreed on
Slide 9: Occupancy and lease expiries
▪ Portfolio is 98.6% occupied (1.4% vacancy) and 5.6% of contract rent (1.6% excluding brownfield opportunities) is due to expire in FY25 (chart below) ▪ No large expiries in next 12 months. Largest single expiry (22.4% of FY25 expiries excluding brownfield opportunities) is $364k, or 0.4% of contra
Slide 10: Rent reviews and under-renting
▪ 63 rent reviews delivered an increase of 8.3% on ~$36.3m of contract rent (~5.7% annualised, up from 4.2% in 2023) 90% − 39 fixed reviews delivered an increase of 2.6% on ~$20.1m of contract rent (~2.6% annualised) Expiries 5.6% 80% − 8 market rent reviews delivered an increase of 48.8% on $3.2m o
Slide 11: Fair value gain/(loss) on investment properties
$800m $600m $400m $200m $m -$200m 2019 2020 2021 2022 2023 FP24 Fair Value Gain/(Loss) on Investment Properties Cumulative Fair Value Gain/(Loss) on Investment Properties 11
Slide 12: Financial section
Annual Results Briefing
Slide 13: Net rental income
▪ Net rental income (excluding service $50m charges) of $48.3m up $0.9m or 1.9% +1.5 +0.1 on the pcp ($47.4m), growth on $49m stabilised portion of the portfolio of 4.3% $49m +0.4 48.3 ▪ Positive leasing activity contributed to an increase totalling +$3.4m (rent $48m +1.5 reviews & adjustments +$1.5
Slide 14: AFFO
4.7 ▪ AFFO of 4.58 cps, 0.04 cps or 0.9% down on the pcp 4.62 ▪ Maintenance capex up $0.6 million on 4.6 -0.00 +0.02 4.58 the pcp to 19 basis points +0.03 +0.14 ▪ Admin expense increases due to 4.5 climate-related disclosures and other -0.12 compliance costs 4.4 -0.07 ▪ Interest expense and bank fee
Slide 15: Dividends and FY25 guidance
▪ FP24 cash dividends total 4.15 cps, consistent with 2023 EARNINGS FP24 CPS H123 CPS CHANGE dividends (annualised) ▪ FY25 dividend guidance of 8.30 to 8.50 cps, an increase FUNDS FROM OPERATIONS 5.03 4.92 +0.11 CPS or +2.2% of up to 0.20 cps or 2.4% on annualised FP24 dividends ADJUSTED FUNDS FROM
Slide 16: Portfolio value movement
▪ Portfolio value of $2.05 billion $2,100m +6.8 +0.0 +49.5 ▪ Capex at 30-32 Bowden Road and 78 Springs Road (Green Star 2,050.5 $2,050m developments), 28 Paraite Road (yard 2,027.7 -29.4 -4.2 works), 314 Neilson Street (warehouse extension) $2,000m ▪ 45 Cryers Road, East Tamaki, acquisition settled
Slide 17: Net tangible assets per share
▪ Net tangible assets (NTA) per share 275 decreased by 0.2 cps or 0.1% 270.9 +0.7 270.7 ▪ Decrease in the fair value of 270 -0.0 -0.8 investment properties (-0.8 cps), -0.1 largely offset by an increase in the net fair value asset for derivative financial 265 instruments (+0.7 cps) ▪ Muted NTA per s
Slide 18: Funding section
Annual Results Briefing,
Slide 19: Funding and liquidity
JUNE 2024 DECEMBER 2023 ▪ $50m facility established with CBA in May 2024, short-term BNZ facility subsequently reduced by $50m to $50m FUNDING ▪ Post balance date: BANK FACILITIES DRAWN $450.5m $423.9m − $25m, 8.5-year drawdown made on Pricoa shelf facility BANK FACILITIES LIMIT $675.0m $675.0m in J
Slide 20: Debt expiry and hedging profile
$350m Pricoa 8.5-yr CBA 7-yr Revolver $300m Pricoa 6-yr 25.0 CBA 5-yr $250m BNZ 4-yr Green Term Loan ▪ Following post-balance date Westpac 4-yr Green Loan 125.0 $200m refinancing activity, PFI’s debt ANZ & CBA 3-yr Green Loan 25.0 instruments have an average term to $150m Bonds expiry of ~3.6 years1
Slide 21: Gearing outlook
37.0% +1.2% 36.6% ▪ June 2024 gearing of 32.9% lifting to ~35.4% after committed acquisitions, divestments and projects, near the middle 36.0% of PFI’s target range +1.3% ▪ Spedding Road land acquisition ($40.6m) conditional on titles being received and 35.0% works being complete, resulting in geari
Slide 22: Sustainability
S=SUSTAINABILITY ?- ar ——_
Slide 23: Sustainability targets: Green Star developments
Sustainability Annual Targets - Results Green Star Briefing Developments FP24 TARGETS: HOW WE’RE TRACKING TARGET Significant new buildings to target minimum 5 Green Star rating GREEN STAR STATUS ON TRACK SOLAR Bowden Road Stage 1 awarded a 5 Green Star rating1 Bowden Road Stage 2 and Springs Road St
Slide 24: Sustainability targets: Solar
Sustainability Annual Targets - Results Solar Briefing FP24 TARGETS: HOW WE’RE TRACKING TARGET Install solar systems at five buildings by the end of 2025 GREEN STAR STATUS ACHIEVED SOLAR We have installed 1180 solar panels across 5 buildings in collaborations with our tenants AMI RepairHub, Electrol
Slide 25: Sustainability targets: Metering
Sustainability Annual Targets - Results Metering Briefing FP24 TARGETS: HOW WE’RE TRACKING TARGET Implement power metering and monitoring for 50% of properties by the end of 2025 GREEN STAR STATUS ACHIEVED SOLAR We have installed power metering at 57 properties, equal to 63% of our portfolio METERIN
Slide 26: 06. Market
Slide 27: Auckland rental market and re-leasing spreads
▪ Significant re-leasing spreads being achieved following strong market rental growth over the last three years (over 30% cumulative growth), helping offset increased borrowing costs (top chart) ▪ PFI’s ~16% portfolio under-renting provides embedded pathway for near-to-medium-term rental growth ▪ CB
Slide 28: Interest rate and cap rate outlook
6.0% ▪ The RBNZ cut the OCR by 0.25% to 5.25% at the August 5.0% MPS and made significant downward revisions to its projected OCR track, noting headline inflation is returning 4.0% to the target band of 1-3% and weak activity is contributing 3.0% to spare capacity in the economy (top chart) 2.0% ▪ M
Slide 29: Strategy and development section
Annual Results Briefing ent if
Slide 30: Strategic allocations
STRATEGIC ALLOCATIONS Y GR) CORE GENERIC CURRENT: "'C. Ce) 73 - 84% (@) ASSETS HELD CURRENT: O (So) % BROWNFIELD CURRENT: . OPPORTUNITIES: a '% a SPECIALISED CURRENT: 8 ) fl 1% 5-10% Our Portfolio (Target & Current) ‘OUT OF AUCKLAND. Annual Results Briefing FP24
Slide 31: Brownfield development pipeline
▪ Tokyo Food building has achieved ▪ Stage 1 is ahead of schedule and on ▪ Spedding Road provides the opportunity ▪ PFI to commence redevelopment of practical completion and has been budget, with completion now expected to invest an additional ~$130m remaining brownfield sites from 2027 awarded a 5
Slide 32: 30-32 Bowden Road
▪ Spec build leased to Daikin for a term of 12-years, 100% of development now leased for an average lease term of 12- years ▪ Tokyo Food building has achieved practical completion and has been awarded a 5 Green Star rating1, Daikin building expected to complete in October 2024 following additional d
Slide 33: Brownfield Opportunities - Springs Road
Brownfield Annual hn A Opportunities - Results Springs Road Briefing Estimated to start =) December 2024 ss Po
Slide 34: 78 Springs Road redevelopment stages
▪ Stage 1 of the project will see the delivery of a ▪ Design and Build Agreement to Lease signed with ▪ Current plans for the balance of the site (Stage 25,500 sqm 5 Green Star rated warehouse for MiTek, PFI to develop ~6,500 sqm of warehouse, 3) include a ~17,500 sqm warehouse with 500 long-term te
Slide 35: Spedding Road land acquisition
▪ Spedding Road land acquisition ($40.6m) conditional on titles being received and works being complete (expected mid-2025) ▪ 5% deposit payable on subdivision consents being obtained (no later than 30 November 2024), 45% payable on titles being received and vendor works complete, remaining 50% paya
Slide 36: 08. Review & Questions
Slide 37: Questions?
HIGHLIGHTS: “Positive leasing outcomes have continued to deliver a growing income stream in the face of a high interest rate environment. With 100% of PFI’s active brownfield development pipeline now leased, our attention shifts to capturing value from the next stages of the redevelopment of Springs
Slide 38: Important notice
The information included in this presentation is provided as at 26 August 2024 and should be read in conjunction with the annual report, NZX results announcement, NZX Form –Results Announcement and NZX Form –Distribution Notice issued on that same day. Property for Industry Limited (PFI) does not gu
Slide 39: Close of Meeting
Annual Results Briefing AY oN 8 Ys Close of Meeting 2 o 5= oo > ial se _ <iq Fo Li.