Property For Industry Limited · NZX:PFI
Property For Industry — H1 2020 Earnings Presentation
34 slides from Property For Industry's earnings presentation, Sep 4, 2020
Slide 1: Welcome to the 2020 Interim Results Briefing
Sa oa J q hon, ts 4 aes Ae WELCOME - TO THE 2020 INTERIM RESULTS BRIEFING
Slide 2: Contents
Contents Interim Results Briefing 2020 01. HIGHLIGHTS 02. COVID-19 UPDATE 3. Bor TOC e® 4. #2020 INT RESULTS CAPITAL MANAGEMENT
Slide 3: Highlights
Highlights Interim Results Briefing 2026: Peon ie
Slide 4: Highlights
Highlights Interim Results Briefing 2020 STRONG BALANCE SHEET: Net tangible assets largely unchanged at 204.8 cents per share, additional bank facility secured, almost $130 million of available liquidity, gearing of 28.7% PORTFOLIO METRICS MAINTAINED: Weighted average lease term of 5.28 years, occup
Slide 5: COVID-19 Update
Interim Results, iefing (1)
Slide 6: COVID-19 Update: Health, safety and wellbeing our top priority
COVID-19 Interim Update Results Briefing 2020 HEALTH, SAFETY AND WELLBEING OF OUR TEAM AND TENANTS OUR TOP PRIORITY PROACTIVE STEPS TAKEN: TRADING UPDATE: ▪ Secured an additional $50 million of liquidity from one of our key banking ▪ H1 2020 financial performance materially in line with the prior in
Slide 7: PFI's strategic direction serving the company well
COVID-19 Interim Update Results Briefing 2020 PFI’S STRATEGIC DIRECTION SERVING THE COMPANY WELL: LOOKING FORWARD: ▪ Significant progress made in recent years to transition to a pure-play ▪ COVID-19 pandemic has resulted in devastating health and economic industrial listed property vehicle outcomes
Slide 8: Portfolio
Portfolio Interim Results Briefing
Slide 9: Portfolio Snapshot
Portfolio Interim Snapshot Results Briefing 2020 ▪ PFI's portfolio is diversified across 93 properties JUNE 2020 DECEMBER 2019 JUNE 2019 and 140 tenants, with 99.0% occupancy and a weighted average lease term of 5.28 years, BOOK VALUE $1,470.0m $1,476.2m $1,368.3m weighted towards Auckland industria
Slide 10: Independent Valuations
Valuations Interim Results Briefing 2020 ▪ All 93 properties valued at the half year (14 full valuations, desktop valuation of the remainder), resulting in a total write down of $7.8 million or 0.5% ▪ Independent market rental assessment estimates portfolio is ~3.5% under rented ▪ PFI’s passing yiel
Slide 11: Leasing
Leasing Interim Results Briefing 2020 ▪ 11 leases agreed over ~31,000 sqm of space ADDRESS TENANT TERM AREA % RENT ROLL for an average term of 6.4 years ▪ Two new leases and nine renewals secured 43 CRYERS ROAD Astron Plastics 5.0 years 8,468 sqm 1.0% ▪ Lease renewals accounted for more than 81% 320
Slide 12: Rent Reviews
Rent Interim Reviews Results Briefing 2020 Vacant 1.0% ▪ 53 rent reviews delivered an average annual uplift of ~4.1% on Expiry 1.9% ~$22.5 million of contract rent Market 7.0% ▪ Five market rent reviews delivered an annualised increase of 7.1% over an average review period of 2.4 years on $1.2 milli
Slide 13: H2 2020 Lease Expiries
H2 2020 Interim Lease Results Expiries Briefing 2020 ▪ Portfolio is 99.0% occupied (1.0% vacancy) and 1.9% of contract H2 2020 EXPIRIES TENANT % RENT ROLL rent is due to expire in the second half of 2020, a total of 2.9% CARLAW PARK OFFICE Jacobs 0.5% (H2 2019: 3.1%) 23 ZELANIAN DRIVE Exclusive Tyre
Slide 14: Environmental, Social and Governance (ESG)
Environmental, Interim Social and Results Governance Briefing (ESG) 2020 HEALTH, SAFETY & RESOURCE LONG-TERM WELLBEING EFFICIENCY THINKING PROGRESS TO DATE: CURRENT FOCUS AREAS: ▪ Developed a high level ESG strategy ▪ Understanding and responding to our climate-related risks ▪ Recruited a Sustainabi
Slide 15: #2020 Interim Results
Interim Results Briefing #2020
Slide 16: Net Rental Income
Net Rental Interim Income Results Briefing 2020 ▪ Net rental income of $41.6 $45m million in line with the prior interim period ($41.0 million) ▪ COVID-19 related support for $44m +0.4 tenants included $0.7 million of +0.6 abatement and $0.7 million of deferral, a combined total of $43m +0.9 1.6% of
Slide 17: Adjusted Funds From Operations
Adjusted Interim Funds From Results Operations Briefing (cents per share) 2020 4.6 ▪ Profit after tax of $15.6 million +0.07 +0.33 ▪ FFO earnings of 4.78 cents 4.4 per share, 0.29 cents per share or 6.5% ahead of the prior interim period 4.2 ▪ AFFO earnings of 3.79 cents 4.11 per share, 0.32 cents p
Slide 18: Earnings, Dividends, Guidance
Earnings, Interim Dividends, Results Guidance Briefing 2020 ▪ Q2 dividend based on H1 2020 financial EARNINGS H1 2020 CPS H1 2019 CPS CHANGE performance, performance materially in line with H1 and H2 2019 FUNDS FROM OPERATIONS 4.78 4.49 +0.29 CPS or +6.5% ▪ H1 2020 cash dividends total 3.60 cps, in
Slide 19: Investment Properties
Investment Interim Properties Results Briefing 2020 ▪ Portfolio value of ~$1.47 billion, $1,480m +1.7 including 127 Waterloo Road, +6.8 Christchurch, which is classified $1,475m as held for sale and is due to settle April 2021 1,469.3 1,470.0 $1,470m -7.8 ▪ All 93 properties valued at the half year
Slide 20: Net Tangible Assets
Net Tangible Interim Assets Results (cents per share) Briefing 2020 208 ▪ Net tangible assets (NTA) per share decreased by 0.7 cents 207 per share or 0.3% +0.5 ▪ Change in NTA per share driven +0.6 by the increase in retained 206 earnings (+0.6 cps) and material 205.5 damage insurance income (+0.5 c
Slide 21: Capital Management
CAPITAL » MANAGEMENT
Slide 22: Funding, Covenants, Interest Rates
Funding, Interim Covenants, Results Interest Briefing Rates 2020 ▪ $50 million liquidity facility secured from JUNE 2020 DECEMBER 2019 CBA in March 2020 in response to the risks FUNDING associated with COVID-19 BANK FACILITIES DRAWN $222.3m $215.6m ▪ Large fall in the three-month Bank Bill Market (o
Slide 23: Debt Facility Maturity Profile, Hedging
Debt Facility Interim Maturity Results Profile, Briefing Hedging 2020 200.0 150.0 ▪ Average borrowings increased by $6.0 million or 1.5% 100.0 ▪ Average term to expiry bank 150.0 150.0 facilities and bonds (top graph) 50.0 100.0 100.0 of 3.4 years, $127.7 million of 50.0 unutilised bank facility cap
Slide 24: Market
Interim Results Briefing MARKET
Slide 25: Market Update
Market Interim Update Results Briefing 2020 ▪ Challenging economic outlook: 5-YEAR 5-YEAR − “Households and businesses are cautious, and CBRE AUCKLAND MARKET OUTLOOK JUNE 2020 FORECAST: FORECAST: JUNE 2020 DECEMBER 2019 unemployment is rising. Investment and spending will be weaker, with policy prov
Slide 26: Our Priorities
Slide 27: Purpose, Vision, Strategic Direction, Progress
Purpose, Interim Vision, Results Strategic Briefing Direction, 2020 Progress OUR PURPOSE OUR VISION PFI generates income for investors as professional landlords to PFI will be one of New Zealand’s foremost Listed Property the industrial economy, generating prosperity for New Zealand. Vehicles. Our m
Slide 28: Significant Progress
Significant Interim Progress Results Briefing 2020 $130.5M INVESTED $47.8M DIVESTED 28
Slide 29: 2020 Focus
2020 Focus Interim Results Briefing 2020 DISPOSALS: 2020 focus: disposal of remaining non-industrial properties, including Carlaw Park and Shed 22 ACQUISITIONS: 2020 focus: acquisitions to match the disposal of remaining non-industrial properties LOT 1, 88 TIDAL ROAD VALUE-ADD STRATEGIES: ASSET MANA
Slide 30: Review & Questions
REVIEW & QUESTIONS
Slide 31: Review & Questions
Review & Interim Questions Results Briefing 2020 LOOKING FORWARD: ▪ Resilient interim result despite a period of significant volatility and uncertainty HIGHLIGHTS: ▪ Returns reflect ownership of the right industrial properties, in the right locations, filled with ▪ Resilient interim result quality t
Slide 32: Appendices
Appendices Interim Results Briefing APPENDICES
Slide 33: Appendix 1: FFO and AFFO
Appendix 1: Interim FFO and Results AFFO Briefing 2020 (Unaudited, $000, unless noted) 6ME June 2020 6ME June 2019 Profit and total comprehensive income after income tax attributable to the shareholders of the Company 15,649 46,398 Adjusted for: Fair value (loss) / gain on investment properties 7,80
Slide 34: Disclaimer
Disclaimer Interim Results Briefing 2020 The information included in this presentation is provided as at 4 September 2020 and should be read in conjunction with the NZX results announcement, newsletter, NZX Form – Results Announcement, NZX Form – Distribution Notice, and interim financial statements
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