Stride Property Group · NZX:SPG
Stride Property — DNZ Property Fund — Merger or Acquisition (September 2015)
29 slides from Stride Property's merger presentation, Sep 23, 2015
Slide 1: Acquisition and Capital Raising
Acquisition and Capital Raising 23 SEPTEMBER 2015
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by DNZ Property Fund Limited (DNZ or Issuer) in relation to the proposed placement and share purchase plan offer of fully paid ordinary shares (New Shares) in DNZ to eligible shareholders and investors under clause 19 of Schedule 1 to the Financial Mark
Slide 3: Agenda & Content
Agenda & Content PAGE Introduction 4 Financial Information 6 Portfolio Overview 9 Strategy Overview 14 The Acquisition 16 Capital Raising 22 Appendices 25 DNZ PROPERTY FUND LIMITED | ACQUISITION AND CAPITAL RAISING 23 SEPTEMBER 2015 3
Slide 4: Introduction
INTRODUCTION DNZ PROPERTY FUND LIMITED | ACQUISITION AND CAPITAL RAISING 23 SEPTEMBER 2015 4
Slide 5: Introduction
Introduction DNZ Property Fund Limited (“DNZ”) has agreed to acquire a portfolio of large format retail assets from Antipodean Properties Limited and Antipodean Supermarkets Limited • Purchase price is $287.0m which represents a yield of 6.5% • Portfolio consists of 19 nationwide large format retail
Slide 6: Financial Information
FINANCIAL INFORMATION 6
Slide 7: Recap on FY15 result
Recap on FY15 result Financial Performance Operating profit Distributable 10.25 cps before other income profit1 before annual & income tax up income tax up dividend up 13.1% 15.1% 13.9% on the prior year on the prior year on the prior year Portfolio Net Valuation NTA WALT Increase 5.1% $1.81 5.1 yea
Slide 8: Trading Update and Dividends
Trading Update and Dividends Trading update • DNZ expects net rental income of approximately $28m and distributable profit (after tax) in the range of $15.0m-$15.6m for the six months through to 30 September 2015 • Supporting the confidence on trading to date, DNZ has accelerated the payment of its
Slide 9: Portfolio Overview
PORTFOLIO OVERVIEW DNZ PROPERTY FUND LIMITED | ACQUISITION AND CAPITAL RAISING 23 SEPTEMBER 2015 9
Slide 10: Portfolio Overview
Portfolio Overview As at As at Portfolio Contract Rental1 by Sector Overview 31 August 2015 31 March 2015 As at 31 August 2015 Properties 42 41 Industrial Tenants 294 281 20% Net Lettable Area (m2) 338,504 334,694 Office WALT (years) 5.3 5.1 32% Occupancy Rate (by area) 99.6% 96.6% Large Format Reta
Slide 11: Portfolio Overview
Portfolio Overview Top 10 Tenants1 by Contract Rental2 Lease Expiry Profile3 by Contract Rental2 As at 31 August 2015 As at 31 August 2015 % of Portfolio Contract Rental Financial % of Portfolio Contract Rental Year 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 0% 2% 4% 6% 8% 10% 12% 2016 2017 Bunnings 4 2
Slide 12: Acquisitions, Developments and Divestments
Acquisitions, Developments and Divestments Acquisitions and Developments • Acquisition of 35 Teed Street, Auckland, settled 30 June 2015 • NorthWest Shopping Centre will open 1 October 2015 • Review of redevelopment options for Johnsonville Shopping Centre expected to be completed by late 2015 • Nor
Slide 13: Portfolio Repositioning
Portfolio Repositioning As at Pro forma NorthWest Shopping Centre (NorthWest SC) Overview 31 August 2015 Post NorthWest SC¹ • Retail space fully leased Properties 42 42 • Forecast value on completion $170m(note 2) Tenants 294 393 • Net operating income yield on development costs expected to exceed 7
Slide 14: Strategy Overview
STRATEGY OVERVIEW DNZ PROPERTY FUND LIMITED | ACQUISITION AND CAPITAL RAISING 23 SEPTEMBER 2015 14
Slide 15: Strategy Overview
Strategy Overview • DNZ invests in places it believes will deliver relative outperformance over time, by focusing on places that provide the best environment for our customers (tenants), their staff, their visitors and their customers. • Place based attributes are an important part of DNZ’s stock se
Slide 16: The Acquisition
THE ACQUISITION DNZ PROPERTY FUND LIMITED | ACQUISITION AND CAPITAL RAISING 23 SEPTEMBER 2015 16
Slide 17: Investment Highlights
Investment Highlights Nationwide portfolio of 19 large format retail assets in strong catchment areas with exposure to the non-discretionary take-home food, packaged liquor and groceries sector High quality tenant in General Distributors Limited, the operator of Countdown supermarkets in New Zealand
Slide 18: Overview of the Acquisition Portfolio
Overview of the Acquisition Portfolio Nationwide portfolio Overview Browns Bay Greenlane Meadowbank Highland Park Papakura Onehunga Properties 19 Tenants 21 Net Lettable Area (m2) 71,896 Upper Hutt, Upper Hutt, Morrinsville Maidstone Queen St Lower Hutt WALT (years) 18.0 Auckland Occupancy Rate (by
Slide 19: Composition of the DNZ Portfolio
Composition of the DNZ Portfolio Acquisition portfolio Pro forma Pro forma Overview Improvement across all key DNZ portfolio metrics Post NorthWest SC¹ Post Acquisition2 • Properties • More geographically diversified portfolio 42 61 • Progressive becomes the largest tenant exposure, Tenants 393 414
Slide 20: Complementary Large Format Retail Portfolio
Complementary Large Format Retail Portfolio Existing large Pro forma format retail Acquisition Post Large format retail portfolio of scale Overview 31 August 2015 Portfolio Acquisition1 • 30 properties nationwide Properties 11 19 30 • 50% of rental income from Auckland and Wellington Value / acquisi
Slide 21: Funding and Capital Structure
Funding and Capital Structure Funding Sources $m Uses $m • Acquisition and associated costs along with capital New equity raised 129.0 Investment properties 287.0 raising costs to be funded from: • $114m equity placement to eligible Acquisition and capital shareholders and investors Debt 161.4 3.4 r
Slide 22: Capital Raising
CAPITAL RAISING DNZ PROPERTY FUND LIMITED | ACQUISITION AND CAPITAL RAISING 23 SEPTEMBER 2015 22
Slide 23: Capital Raise Overview
Capital Raise Overview Two separate capital raising initiatives to raise approximately $129m of equity to partially fund the Capital raise acquisition of 19 large format retail assets The balance of the acquisition will be funded with additional debt facilities Approximately $114m placement to
Slide 24: Timetable
Timetable Event Date Announcement of acquisition and intention to raise capital and cleansing notices released to the NZX 23-Sep-2015 Placement DNZ enters trading halt 23-Sep-2015 Bookbuild opens At launch, 23-Sep-2015 Bookbuild closes 23-Sep-2015 Trading halt lifted1 24-Sep-2015 Settlement of Place
Slide 25: Appendices
APPENDICES DNZ PROPERTY FUND LIMITED | ACQUISITION AND CAPITAL RAISING 23 SEPTEMBER 2015 25
Slide 26: Appendix - Portfolio Summary
Appendix 1 - Portfolio Summary Overview of the Acquisition Portfolio Portfolio Summary NLA Net Passing Income WALT No. Property Region Tenants (m²) ($000s) (years) 1 Browns Bay Auckland Countdown 4,382 1,258 19.2 2 Greenlane Auckland Countdown 4,633 1,724 19.2 3 Meadowbank Auckland Countdown 4,457 1
Slide 27: NorthWest Two development
Appendix 2 NorthWest Two development • On 9 September 2015 DNZ provided an update to the market on the approximately $37m development of NorthWest Two and the arbitration with Westgate Town Centre Limited (WTCL) regarding the size of one of the four NorthWest Two buildings. As already advised, WTCL
Slide 28: International Offer restrictions
Appendix 3 - International Offer restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company The contents of this document have not been reviewed by any Hong Kong regulatory authority. You in any jurisdiction in which it would be unlawful. In particul
Slide 29: Thank You
DNZ Property Fund Limited Level 12, 34 Shortland Street, Auckland 1010 PO Box 6320, Wellesley Street, Auckland 1141 Tel: +64 9 912 2690 Fax: +64 9 912 2693 www.dnzproperty.com THANK YOU
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