Stride Property Group · NZX:SPG
Stride Property — DNZ Property Fund — Shareholder Meeting (August 2013)
42 slides from Stride Property's shareholder meeting presentation, Aug 13, 2013
Slide 1: Annual Meeting 13 August 2013
ANNUAL MEETING 13 AUGUST 2013 ANNUAL RESULT FOR THE PERIOD ENDED 31 MARCH 2013
Slide 2: Directors & Senior Management
DIRECTORS & SENIOR MANAGEMENT ANNUAL MEETING Tim Storey - Chairman & Independent Director John Harvey - Independent Director DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 David van Schaardenburg - Independent Director Michael Stiassny - Independent Director Paul Duffy - CEO and Executi
Slide 3: Agenda
AGENDA ANNUAL MEETING Tim Storey A. Chairman’s Address Chairman Paul Duffy DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 B. Chief Executive’s Address - 2013 Operational Review Chief Executive C. Investment Strategy - 2014 + Tim Storey Chairman D. Financial Statements E. Ordinary Resolu
Slide 4: Highlights
4 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 HIGHLIGHTS ANNUAL MEETING
Slide 5: Highlights 2013
HIGHLIGHTS 2013 ANNUAL MEETING (31 MARCH 2012 FIGURES IN BRACKETS) Operating profit before other income and tax $31.347m ($28.796m) up 8.9% Net rental income $53.511m ($52.910m) DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 3 Net 2.4% property portfolio valuation increase1 Net profit a
Slide 6: Highlights 2013
HIGHLIGHTS 2013 ANNUAL MEETING Share price trading at a premium to NTA Dividend Reinvestment Plan (DRP) implemented Total cash dividend of 9.0cps DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Total shareholder return of 30.7% TOTAL 6
Slide 7: Capital Management
CAPITAL MANAGEMENT ANNUAL MEETING As at Covenant Covenant 31 Mar 2013 Loan to Value Ratio (Bank Debt / Property Values) ≤ 50% 36.9% Interest Cover Ratio (EBIT / Interest and Financing Costs) ≥ 1.75 x 2.95 x DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Fully Leased Unexpired Term1 > 3.
Slide 8: Dividends
DIVIDENDS ANNUAL MEETING Total cash dividend 9.0cps for the year ended 31 March 2013 (FY13) First Quarter FY14 Cash Dividend DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Cash dividend of 2.25cps Imputation credits of 0.565cps Record date 30 August 2013 Payment date 12 September 2013 D
Slide 9: 2013 Operational Review
ANNUAL MEETING DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 2013 OPERATIONAL REVIEW PAUL DUFFY CHIEF EXECUTIVE 9
Slide 10: Highlights 2013
HIGHLIGHTS 2013 ANNUAL MEETING (31 MARCH 2012 FIGURES IN BRACKETS) Occupancy increased to 99.6% (98.7%) WALT1 5.2 years (5.4 years) 171 lease transactions over 244,893m2 for a total annual DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 rental of $39.7m No major FY14 lease expiries remai
Slide 11: Portfolio Summary
PORTFOLIO SUMMARY ANNUAL MEETING As at As at As at Overview 31 Mar 2012 31 Mar 2013 30 Jun 2013 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Properties 51 48 46 Tenants 252 258 291 Net Lettable Area (m2) 379,965 354,502 364,219 WALT (years) 5.4 5.2 5.6 Occupancy Rate (by area) 98.7% 9
Slide 12: Acquisitions: Corinthian Drive, Albany
ACQUISITIONS ANNUAL MEETING CORINTHIAN DRIVE, ALBANY, AUCKLAND 51 Corinthian Drive Purchase price $12.9m 100% leased DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Three levels, 3,412m2 plus basement parking Nine year lease to Westpac (76% lettable area) Adjacent Land Purchase price $5.
Slide 13: Office / Warehouse Development: Hydraulink
OFFICE / WAREHOUSE DEVELOPMENT ANNUAL MEETING O’RORKE ROAD, AUCKLAND Hydraulink Fluid Connectors Limited New 3,390m2 integrated facility 12 year lease with two yearly rent DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 reviews to market Fully leased and construction started (fixed price
Slide 14: Office / Warehouse Development: AA Insurance
OFFICE / WAREHOUSE DEVELOPMENT ANNUAL MEETING O’RORKE ROAD, AUCKLAND AA Insurance Limited New 1,400m2 warehouse and office facility DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Nine year lease Fully leased and construction started (fixed price contract) Scheduled completion October 20
Slide 15: Hydraulink & AA Insurance
HYDRAULINK & AA INSURANCE ANNUAL MEETING Both projects on time and on budget 8,000m2 of development land remains on this 5.2ha site DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Hydraulink AA Insurance 15
Slide 16: Diversification by Sector & Location
DIVERSIFICATION BY SECTOR & LOCATION ANNUAL MEETING DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 * Contract Rental is the amount of rent and other amounts payable to DNZ under each lease, annualised on the basis of the occupancy level for each lease as at the relevant date, assuming n
Slide 17: Diversification by Tenant
DIVERSIFICATION BY TENANT ANNUAL MEETING TOP 10 TENANTS 51% TOTAL CONTRACT RENTAL AS AT 30 JUNE 2013 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 * Contract Rental is the amount of rent and other amounts payable to DNZ under each lease, annualised on the basis of the occupancy level f
Slide 18: Sustainable Cashflow: Managing Expiry Risk
SUSTAINABLE CASHFLOW ANNUAL MEETING MANAGING EXPIRY RISK DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 * Contract Rental is the amount of rent and other amounts payable to DNZ under each lease, annualised on the basis of the occupancy level for each lease as at the relevant date, assum
Slide 19: Portfolio Risk Management
PORTFOLIO RISK MANAGEMENT ANNUAL MEETING Diversification Sustainable Cashflow Location Quality of Tenants DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Sector Quality of Assets Tenant High WALT Asset High Occupancy Lease Expiry Profile Proactive Management Approach 19
Slide 20: Summary
SUMMARY ANNUAL MEETING Low vacancy levels across all sectors Low expiry risk achieved for FY14 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Actively reducing FY15 expiry Manage $111m Diversified NZ Property Fund Ltd portfolio DNZ Portfolio well positioned High occupancy – Strong tenan
Slide 21: Chief Executive
CHIEF EXECUTIVE ANNUAL MEETING Kerridge & Partners retained Recruitment process well underway DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Expect to be in a position to make further comment over the coming months 21
Slide 22: Investment Strategy
22 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 INVESTMENT TIM STOREY STRATEGY CHAIRMAN ANNUAL MEETING
Slide 23: Strategy: Acquisitions
STRATEGY ANNUAL MEETING ACQUISITIONS Fundamentals of investment strategy Location - Auckland region bias DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Demographics Tenant mix, lease covenant and term Opportunity for rental growth Acquisition – Westpac, Corinthian Drive, Albany, Aucklan
Slide 24: Acquisitions: Auckland's Growth Nodes
ACQUISITIONS ANNUAL MEETING AUCKLAND’S GROWTH NODES Investments in Albany, Silverdale and Westgate Zone 5 Land Located in Auckland growth nodes DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 24
Slide 25: Acquisitions: Silverdale Centre
ACQUISITIONS ANNUAL MEETING SILVERDALE CENTRE Acquisition price $78m Opened in October 2012 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 36 bulk and specialty retailers anchored by The Warehouse and Countdown 22,978m2 of retail floor area, 980 on-grade and basement car parks WALT 9.8
Slide 26: Strategy: Developments
STRATEGY ANNUAL MEETING DEVELOPMENTS Development land in growth regions Strong demographic characteristics DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Proximity to major arterial routes Development - Meridian Energy, Customhouse Quay, Wellington Zoning in place or achievable Control
Slide 27: Project Update: Johnsonville Shopping Centre
PROJECT UPDATE ANNUAL MEETING JOHNSONVILLE SHOPPING CENTRE Centre occupancy being maintained Pre-development planning continues Key strategic asset DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Wellington region economic and retail environment not currently appropriate Board continues
Slide 28: Westgate Zone Land
WESTGATE ZONE 5 LAND ANNUAL MEETING Development land 6.23ha Zone 5 of the proposed Westgate Town Centre Purchase price $25m DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Resource consent held for enclosed shopping centre of 26,000m² net 28
Slide 29: Westgate Town Centre
29 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 WESTGATE TOWN CENTRE ANNUAL MEETING
Slide 30: Westgate Town Centre
WESTGATE TOWN CENTRE ANNUAL MEETING Westgate Town Centre is a planned 56ha mixed use development Auckland Council investing in new infrastructure DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Existing Shopping Zone 5 Land Centre North Western Motorway 30
Slide 31: Westgate Zone Land
WESTGATE ZONE 5 LAND ANNUAL MEETING DNZ has undertaken further work to fully develop the proposal to ensure project feasibility, including pre-leasing commitments Development expected to be completed prior to Christmas 2015 and DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 will be unde
Slide 32: Summary
SUMMARY ANNUAL MEETING Well managed Best practice governance DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Progress development projects Continue to re-weight the portfolio with Auckland bias Continue to look for new opportunities to add value Outlook FY14 & FY15 is positive Portfolio
Slide 33: Outlook
OUTLOOK ANNUAL MEETING Well placed to achieve another strong performance Sustainable dividends DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 Strong governance Diversity policy Future directors programme Health and safety 33
Slide 34: Tim Storey, Chairman
34 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 ANNUAL MEETING TIM STOREY CHAIRMAN ANNUAL MEETING
Slide 35: Financial Statements
ANNUAL MEETING FINANCIAL STATEMENTS D. Financial Statements To receive and consider the annual report and DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 audited financial statements for the year ended 31 March 2013. 35
Slide 36: Ordinary Resolutions
36 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 RESOLUTIONS ORDINARY ANNUAL MEETING
Slide 37: Resolution: Appointment of Auditor
ANNUAL MEETING RESOLUTION 1 Resolution 1 – Appointment of auditor “That the re-appointment of PricewaterhouseCoopers as DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 auditor of the Company be recorded and the directors be authorised to fix the auditor’s fees and expenses.” Is there any
Slide 38: Resolution: Appointment of Director
ANNUAL MEETING RESOLUTION 2 Resolution 2 – Appointment of director “That Timothy Ian MacKenzie Storey be re-elected as a DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 director of the Company pursuant to clause 20.3 of the Constitution.” Is there any discussion? Voting on this resolutio
Slide 39: Resolution: Appointment of Director
ANNUAL MEETING RESOLUTION 3 Resolution 3 – Appointment of director “That Edward John Harvey be re-elected as a director of DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 the Company pursuant to clause 20.3 of the Constitution.” Is there any discussion? Voting on this resolution will be
Slide 40: Resolution: Directors' Remuneration
ANNUAL MEETING RESOLUTION 4 Resolution 4 – Directors’ remuneration “That, with effect from the start of the financial year DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 commencing on 1 April 2013, the Company adopt a fee pool (being a monetary sum per annum payable to all directors tak
Slide 41: General Business
41 DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 BUSINESS GENERAL ANNUAL MEETING
Slide 42: Thank You
ANNUAL MEETING THANK YOU DNZ PROPERTY FUND LIMITED - ANNUAL MEETING - 13 AUGUST 2013 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 www.dnzproperty.com Important Notice: The information in this pr
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