Property For Industry Limited · NZX:PFI
Property For Industry — H1 2021 Earnings Presentation
35 slides from Property For Industry's earnings presentation, Aug 20, 2021
Slide 1: Welcome to the 2021 Interim Results Briefing
Interim TO THE 2021 INTERIM RESULTS BRIEFING or ae
Slide 2: 01. Highlights
Interim, Results Briefing = HIGHLIGHTS = PORTFOLIG#
Slide 3: Capital Management
Slide 4: Highlights
Highlights Interim Results Briefing 2021 ROBUST BALANCE SHEET: Net tangible assets up 22.9% to 271.4 cents per share, gearing of 30.0%, bank facilities refinanced and increased post balance date, over $100 million of available liquidity, proceeds from the contracted divestment of Carlaw Park will pr
Slide 5: Interim Results Briefing
Interim | Results //? Briefing "aa
Slide 6: Portfolio Snapshot
Portfolio Interim Snapshot Results Briefing 2021 ▪ PFI's portfolio is diversified across 96 properties JUNE 2021 DECEMBER 2020 JUNE 2020 and 148 tenants, with 99.5% occupancy and a weighted average lease term of 4.79 years, BOOK VALUE $2,025.3m $1,631.5m $1,470.0m weighted towards Auckland industria
Slide 7: Our Current Portfolio
Our Current Interim Portfolio Results Briefing 2021 7
Slide 8: Valuations
Valuations Interim Results Briefing 2021 ▪ 94 properties valued at the half year, resulting in a write up of $240.3 million or 14.5% to $2,025.3 million − $7.9 million write up of Carlaw Park properties to contracted sale price of $110.0 million brings total fair value gains on properties to $248.2
Slide 9: Leasing & Expiries
Leasing Interim & Results Expiries Briefing 2021 ▪ Leasing 25% 21.5% − 10 leases agreed over ~17,500 sqm of space for an average term 20% 17.4% of 4.4 years 14.7% 15% − Five new leases and five renewals secured 10.6% 9.9% 9.9% 10% − Average leasing costs two-thirds of a month per year of term 6.0% 4
Slide 10: Rent Reviews
Rent Interim Reviews Results Briefing 2021 Vacant 0.5% ▪ 66 rent reviews delivered an average annual uplift of ~3.1% on Expiry 1.1% ~$32.6 million of contract rent Market 3.7% − Six market rent reviews delivered an annualised increase of CPI 11.3% 1.9% over an average review period of 5.7 years on $
Slide 11: 2021 Interim Results
2021 INTERIM RESULTS
Slide 12: Net Rental Income
Net Rental Interim Income Results Briefing 2021 $48m ▪ Net rental income of $45.9 million up $4.3 million or 10.4% $47m +0.3 on the prior interim period ($41.6 +1.0 million) 45.9 $46m -0.4 +1.3 -0.3 -0.1 ▪ Increases due to positive leasing activity totalling $2.6 million and $45m acquisitions, also
Slide 13: Adjusted Funds From Operations
Adjusted Interim Funds From Results Operations Briefing (cents per share) 2021 5.5 ▪ Profit after tax of $273.5 million +0.11 +0.02 ▪ FFO earnings of 5.36 cents per +0.15 share, 0.58 cents per share or 5.0 +1.13 12.1%, AFFO earnings of 4.71 -0.30 4.71 cents per share, 0.92 cents per share or 24.3% -
Slide 14: Earnings, Dividends, Guidance
Earnings, Interim Dividends, Results Guidance Briefing 2021 ▪ H1 2021 cash dividends total 3.60 cps, in line EARNINGS H1 2021 CPS H1 2020 CPS CHANGE with H1 2020 ▪ Dividend reinvestment scheme in place for Q1 FUNDS FROM OPERATIONS 5.36 4.78 +0.58 CPS or +12.1% and Q2 dividends, 2% discount ADJUSTED
Slide 15: Investment Properties
Investment Interim Properties Results Briefing 2021 ▪ Portfolio value of ~$2.03 billion, $2,100m including the Carlaw Park +138.3 +10.9 +0.8 2,025.3 properties, which are classified as assets held for sale (AHFS) $2,000m -4.3 ▪ Total fair value gains on properties of $248.2 million for $1,900m +248.
Slide 16: Net Tangible Assets (cents per share)
Net Tangible Interim Assets Results (cents per share) Briefing 2021 280 ▪ Net tangible assets (NTA) per share increased by 50.5 cents +1.1 +1.0 +0.1 271.4 per share or 22.9% 270 +49.3 ▪ Change in NTA per share driven by the increase in the fair value 260 of investment properties (+49.3 cps), retaine
Slide 17: Capital Management
Slide 18: Funding, Covenants, Interest Rates
Funding, Interim Covenants, Results Interest Briefing Rates 2021 ▪ $100 million CBA liquidity facility increased REFINANCE JUNE 2021 DECEMBER 2020 to $125 million and extended in April 2021 FUNDING ▪ $300 million syndicated facilities refinanced BANK FACILITIES DRAWN - $405.4m $289.9m in July 2021,
Slide 19: Debt Facility Maturity Profile, Hedging
Debt Facility Interim Maturity Results Profile, Briefing Hedging 2021 300 250 ▪ Post refinance, average term to 200 expiry of bank facilities and 150.0 150 bonds (top graph) of ~4.4 years, $119.6 million of unutilised bank 100 150.0 facility capacity 50 100.0 100.0 100.0 125.0 ▪ Fixed rate payer hed
Slide 20: Interim Results Briefing
Interim Results Briefing 2019
Slide 21: Environmental, Social and Governance (ESG)
Environmental, Interim Social and Results Governance Briefing (ESG) 2021 Our ESG Framework 2021 - Highlights to date 2021 – In progress ▪ HVAC systems containing ozone-depleting ▪ Replacing further HVAC systems containing ESG STRATEGIC PILLARS gases replaced at six properties, resulting ozone-deplet
Slide 22: Market
Slide 23: Market Update
Market Interim Update Results Briefing 2021 ▪ E-commerce penetration accelerated by COVID-19 $m NZ Post Total Online Spend2 pandemic, with online spend continuing to grow in 650 2021 (top graph) 600 550 ▪ Online sales in New Zealand expected to grow from 500 the current 11% to 17% (or $9.3Bn) by 202
Slide 24: Our Priorities
Our Priorities tnterim- | —Results | Briefing
Slide 25: Purpose, Vision and Strategy
Purpose Interim Vision and Results Strategy Briefing 2021 25
Slide 26: Looking Forward
Looking Interim Forward Results Briefing 2021 26
Slide 27: Our Current Portfolio
Our Current Interim Portfolio Results Briefing 2021 27
Slide 28: Core Generic Holdings
Core Interim Generic Results Holdings Briefing 2021 ▪ Purchased for $39.0 million in January 2021 ▪ Located on a 2.8ha site, 250 metres from North Western motorway ▪ PFI already owned neighbouring sites on Add photo of 670- Rosebank and Patiki Roads, together these 680 Rosebank Road create a 8.6ha i
Slide 29: Brownfield Opportunities
Brownfield Interim Opportunities Results Briefing 2021 ▪ Purchased for $91.7 million in May 2021 ▪ Large, modern 17,500 sqm warehouse with 2,200 sqm of canopies and 12,250 sqm of yards ▪ Property is fully leased on a triple-net basis for an initial two-year period, with a commencement rental of $3.6
Slide 30: Brownfield Opportunities
Brownfield Interim Opportunities Results Briefing 2021 ▪ Large 3.9ha site in one of Auckland’s prime industrial locations ▪ Good links to Southern Motorway, dual access from both Bowden Road and Gabador Place ▪ Versatile site that can accommodate large- scale or multiple tenant designs ▪ March 2023
Slide 31: Assets Held For Sale
Assets Interim Held For Results Sale Briefing 2021 CARLAW SHED 22 JUNE 2021 PARK PRO FORMA DIVESTMENT DIVESTMENT ▪ Contracted divestment of Carlaw Park expected to settle towards end of FY21 INVESTMENT PROPERTIES & $2,025.3m -$110.0m▼ -$11.4m▼ $1,904.0m AHFS ▪ Shed 22 seismic strengthening works und
Slide 32: Specialised Assets
Specialised Interim Assets Results Briefing 2021 ▪ New $3.5 million breezeway canopy near completion ▪ Canopy to help improve the environmental performance of the properties at the Hewletts Road estate ▪ Following interim valuations, the estate is now valued at more than $130 million 124 HEWLETTS RO
Slide 33: Interim Results Briefing
Interim Results Briefing
Slide 34: Review & Questions
Review & Interim Questions Results Briefing 2021 LOOKING FORWARD: ▪ Industrial property continues to perform ▪ Occupier and investor demand for industrial property remains robust, supported by HIGHLIGHTS: continued low levels of vacancy and ▪ Record interim result projected rental growth ▪ Robust ba
Slide 35: Disclaimer
Disclaimer Interim Results Briefing 2021 The information included in this presentation is provided as at 20 August 2021 and should be read in conjunction with the NZX results announcement, NZX Form – Results Announcement, NZX Form – Distribution Notice, and interim financial statements issued on tha
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