Investore Property Ltd. · NZX:IPL
Investore Property — H1 FY2024 Earnings Presentation
26 slides from Investore Property's earnings presentation, Nov 16, 2023
Slide 1: Interim Results Presentation
Interim Results Presentation For the six months ended 30 September 2023 16 November 2023
Slide 2: Contents
Contents Bay Central Shopping Centre, Tauranga Financial overview 04 Key metrics 05 Portfolio 06 Sustainability 13 Financial performance 14 Capital management 18 Looking ahead 21 Appendices 23 Investore Property Limited | HY24 Interim Results Presentation 2
Slide 3: Resilience in operating earnings
Resilience in operating earnings Proactive leasing to support portfolio value Effective capital management Investore Property Limited | HY24 Interim Results Presentation 3
Slide 4: Financial overview
Financial overview Profit before other expense and income tax $17.6m consistent with HY23 at $17.7m Loss after income tax $(66.5)m due to a net reduction in fair value of investment properties of $(82.7)m, down from HY23 $(27.7)m loss after income tax Distributable profit1 after current income tax $
Slide 5: Key metrics
Portfolio metrics Capital management $1.0bn 6.24% Portfolio valuation1 down (7.8)% or $(82.7)m for the Average portfolio capitalisation rate2 $100m 40.3%3 6 months ended 30 Sep 23 up 56bp for the 6 months ended 30 Sep 23 Additional bank facilities Loan to Value Ratio to cover bond maturity as at 30
Slide 6: Portfolio
Portfolio 226 Great South Road, Takanini, Auckland Investore Property Limited | HY24 Interim Results Presentation 6
Slide 7: Active portfolio management
Active portfolio management Investment portfolio metrics1 • 29 rent reviews completed over 27,000sqm resulting in a As at As at 3.2% increase on prior rentals 30 Sep 23 31 Mar 23 • 23 of the rent reviews completed were structured reviews Investment portfolio value ($m) 933 1,033 i.e. CPI or fixed. T
Slide 8: Portfolio optimisation
Portfolio optimisation Investore benefits from owning 35 Countdown supermarkets, resulting in a strong relationship which fosters collaboration across the portfolio Investore has agreed to fund online expansion works at Countdown Greenlane, including a new online extension and eight drive-through pi
Slide 9: Woolworths Hakarau Road, Kaiapoi
Woolworths Hakarau Road, Kaiapoi Investore is developing a new Woolworths supermarket on this site, due to open in Dec 23 Upon completion the supermarket will have a 12 year lease and will generate a yield on cost of 5.5%, with the total cost of the project being circa $27.2m (incl. land) Key sustai
Slide 10: Long dated lease expiry profile
Long dated lease expiry profile Lease Expiry Profile2 by Contract Rental1 Long portfolio WALT of 7.7 years, with As at 30 Sep 23 75% of Contract Rental1 expiring in FY30 or beyond FY24 WALT 3.3% Contract Rental expiring: 7.7 years • Countdown Hamilton (Anglesea) (2.3%) lease agreed to be extended by
Slide 11: Key tenants meeting daily needs
Key tenants meeting daily needs Investore's portfolio consists of quality, well-located large format retail properties with tenants that attract regular visitation, including supermarkets, hardware stores, general merchandise and health & wellbeing, enhancing the portfolio's resilience Everyday Coun
Slide 12: Properties in main centres underpin income
Properties in main centres underpin income 81% of Investore’s Contract Rental1 is earned from properties located in New Zealand’s main centres2. Anchor tenants represent 87% of Investore’s Contract Rental Geographic diversification by Contract Rental1 Anchor tenant classification by Contract Rental1
Slide 13: Sustainability
Sustainability Sustainability remains a focus for Investore, with a commitment to ensure new developments are green rated, while also looking to reduce the environmental impact of its existing portfolio Investore has very low scope 1 and 2 emissions (for FY23, 51.3 tCO2-e), primarily from air condit
Slide 14: Financial performance
Financial performance Mt Wellington Shopping Centre, Auckland Investore Property Limited | HY24 Interim Results Presentation 14
Slide 15: Financial performance
Financial performance Change 30 Sep 23 30 Sep 22 $m $m $m % Net rental income 30.4 30.2 +0.2 +0.5 Corporate expenses (4.1) (4.6) +0.5 +10.1 Profit before net finance expense, other expense and income tax 26.2 25.6 +0.6 +2.4 Net finance expense (8.6) (7.9) (0.7) (9.0) Profit before other expense and
Slide 16: Distributable profit
Distributable profit 1 Change 30 Sep 23 30 Sep 22 $m $m $m % Loss before income tax (65.1) (25.0) (40.1) (160.6) Non-recurring, and/or non-cash items, and other adjustments: - Net change in fair value of investment properties 82.7 42.7 +40.0 +93.9 - Borrowings establishment cost amortisation 0.5 0.5
Slide 17: Financial summary
Financial summary As at As at 30 Sep 23 31 Mar 23 Change Investment property value ($m) 993.1 1,062.1 (69.0) Drawn debt ($m) (400.3) (387.6) +12.7 Loan to Value Ratio (LVR)1 40.3% 36.5% +3.8% Equity ($m) 596.7 675.0 (78.3) Shares on issue (millions) 369.6 367.5 2.1 Net Tangible Assets (NTA) per shar
Slide 18: Capital management
Capital management PAK’nSAVE New Plymouth Investore Property Limited | HY24 Interim Results Presentation 18
Slide 19: Proactive capital management
Proactive capital management As at As at Debt facilities 30 Sep 23 31 Mar 23 Debt facilities limit • $100m bank facilities added to provide liquidity for upcoming maturity (ANZ, CCB, ICBC, Westpac), $575m $475m of IPL010 bond in Apr 24; no bank debt maturing until FY26 including $350m bonds • Divide
Slide 20: Hedging and cost of debt
Hedging and cost of debt As at As at Cost of debt 30 Sep 23 31 Mar 23 • As at 30 Sep 23, 89% of drawn debt is hedged or subject to a fixed interest rate Weighted average cost of debt (incl. current interest rate • Investore continues to benefit from high levels of fixed rate 4.34% 4.01% derivatives,
Slide 21: Looking ahead
Looking ahead Mitre 10 MEGA Botany, Auckland Investore Property Limited | HY24 Interim Results Presentation 21
Slide 22: Looking ahead
Looking ahead Revised dividend policy and dividend guidance • Underlying portfolio metrics remain resilient, with a defensive • The Board has determined to revise its dividend rental income stream from non-discretionary, everyday needs policy to pay out between 80%-100% of retail tenants distributab
Slide 23: Appendices
Appendices Bunnings Te Rapa, Hamilton Investore Property Limited | HY24 Annual Results Presentation 23
Slide 24: Appendix A
Appendix A Profit before other expense and income tax $0.6m ($0.4m) $0.1m $0.3m $17.7m ($0.7m) $17.6m 30 Sep 22 Net rental Net rental Higher net finance Lower management Lower administration 30 Sep 23 increase from decrease from IFRS expense fee expense expense existing portfolio adjustments Net Tan
Slide 25: Appendix B
Appendix B Net Contract Rental1 $0.1m $0.3m ($0.4m) $61.9m $61.7m As at Additional turnover rent Rent reviews Other As at 31 Mar 23 30 Sep 23 Investment Properties (excl. lease liabilities)2 $10.7m $3.1m ($0.2m) ($82.7m) $1,062.1m $993.1m As at Net change in fair value Capital expenditure Acquisitio
Slide 26: Thank you
Thank you Level 12, 34 Shortland Street Auckland 1010, New Zealand PO Box 6320, Victoria Street West, Auckland 1142, New Zealand P +64 9 912 2690 W investoreproperty.co.nz Important Notice: The information in this presentation is an overview and does not contain all information necessary to make an