Precinct Properties NZ Ltd & Precinct Properties Investments Ltd · NZX:PCT
Precinct Properties NZ Ltd & Precinct Properties Investments — AMP NZ Office Trust — Non-Deal Roadshow (September 2010)
16 slides from Precinct Properties NZ Ltd & Precinct Properties Investments's roadshow presentation, September 2010
Slide 1: AMP NZ Office Trust
AMP NZ Office Trust www.anzo.co.nz Stock ticker: APT.NZ Forsyth Barr Property Roadshow Amish Vallabh, Chief Financial Officer September 2010 1 Managed by AMP Haumi Management Limited
Slide 2: AMP NZ Office Trust
AMP NZ Office Trust ANZO is NZ’s largest CBD office investor Listed on NZX since 1997 Investment policy…. “to invest in predominantly prime CBD properties in major NZ cities” Strategic objective to deliver sustainable returns to unit- holders within a moderate risk profile NZ$1.3 billion
Slide 3: Portfolio - Auckland
Portfolio - Auckland PricewaterhouseCoopers Tower 151 Queen Street AMP Centre ANZ Centre 21 Queen Street 3
Slide 4: Portfolio - Wellington
Portfolio - Wellington State Insurance Tower Vodafone on the Quay HP Tower Deloitte House AXA Centre Mayfair House No.1 The Terrace 125 The Terrace Pastoral House Chews Lane 4
Slide 5: Portfolio Summary
Portfolio Summary Industry Sector by NLA (% of Portfolio) High quality and diversified tenant 30.0% base 25.0% 20.0% Government is largest customer 15.0% occupying 27% of total portfolio 10.0% NLA 5.0% Government occupies 44.1% of 0.0% Government Legal Banking Vacant Financial Insurance Retail
Slide 6: Portfolio Summary (as at 30 June 2010)
Portfolio Summary (as at 30 June 2010) Portfolio occupancy 90.4% and rising Currently affected by completion of development 12 of 15 properties occupancy over 95% 95% 12 year long-run average 4.5 year portfolio weighted average lease term >90% average tenant retention rate over last 6 ye
Slide 7: Market Environment
Market Environment Market Environment A new world order – navigating through Property market fundamentals remain challenging the turmoil…. ANZO’s Wellington portfolio remains resilient (1% vacancy) Auckland CBD more challenging • Tenant enquiry improving • ANZO occupancy increasing …..a steady
Slide 8: Office Markets - Auckland
Office Markets - Auckland Historic and Projected Office Vacancy Rates - Auckland CBD Total Vacancy % 24% Top 10 Buildings 21% Secondary Prime & A Grade 18% 15% % 12% 9% 6% 3% 0% Jun-96 Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Dec-11 Dec-13 8 N
Slide 9: Office Markets - Wellington
Office Markets - Wellington Historic and Projected Office Vacancy Rates - Wellington CBD Total Vacancy % Top 10 Buildings 18% Secondary Prime & A Grade 15% 12% % 9% 6% 3% 0% Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-12 Dec-14 9 Note: data supplied by CB
Slide 10: Financial Performance (Year Ended 30 June 2010)
Financial Performance (Year Ended 30 June 2010) Total Revenue up 3.3% to $138.1m Distributable profit (after tax)1 up 2.5% to $60.7m Net Loss: $152.1m Directly due to non-cash items: $115.3m revaluation loss, $93.1m deferred tax expense, and $5.1m loss in fair value of swaps. Strong and fl
Slide 11: PIE Distributions to Investors
PIE Distributions to Investors FY10 Gross Distribution 7.058 cents per unit, +2.0% on FY09 FY10 Net (Cash) Distribution 6.113 cents per unit Attractive gross PIE yield of 12.8% for 33% taxpayers (unit price $0.71) May 2010 Budget removal of depreciation allowance on building structure impact
Slide 12: Strong and Flexible Balance Sheet (as at 30 June 2010)
Strong and Flexible Balance Sheet (as at 30 June 2010) Total assets $1.3bn Total bank debt $262m, undrawn debt of $82.5m Debt to total assets: 22.8%1 versus covenant of 40.0% Interest cover 4.1 times versus covenant of 2.0 times Bank facility of $242.5m expires late 2011 and $100m in mid-2
Slide 13: Corporate Governance and Fee Review
Corporate Governance and Fee Review Change from Unit Trust to Company Provides clear separation between interests of ANZO and Manager Board of Directors to include majority of independent Directors elected by investors Proposed new fee structure to further enhance alignment between Manager a
Slide 14: New CEO - Scott Pritchard
New CEO - Scott Pritchard Commenced on 6 September 2010 High quality property professional with 10 years direct experience in listed property Proven track record with the following key attributes Relationship management (particularly customers and investors) Portfolio management (with stre
Slide 15: Summary
Summary A higher level of focus on tenant (or customer) relationships Governance structure and management fee review will further enhance unit-holder alignment Balance sheet is strong with desired liquidity and ample covenant headroom Challenging property market environment continues but ten
Slide 16: ANZO Disclaimer
ANZO DISCLAIMER Important Notice This presentation contains not only a review of operations, but also some forward looking statements (including forecasts and projections) about AMP NZ Office Trust (ANZO) and the environment in which ANZO operates. Because these statements are forward looking, ANZO’
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