Stride Property Group · NZX:SPG
Stride Property — DNZ Property Fund — Shareholder Meeting (August 2011)
36 slides from Stride Property's shareholder meeting presentation, Aug 10, 2011
Slide 1: FY11 Results Annual Meeting
FY11 RESULTS DNZ PROPERTY FUND LIMITED ANNUAL MEETING 10 AUGUST 2011 GUINEAS ROOM ELLERSLIE RACECOURSE 80-100 ASCOT AVENUE GREENLANE, AUCKLAND
Slide 2: DNZ Property Fund Limited Annual Meeting
2 DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 3: Agenda
3 Agenda Tim Storey A. Chairman’s Address Chairman Paul Duffy B. Chief Executive’s Review Chief Executive Tim Storey C. Financial Statements Chairman D. Ordinary Resolutions E. General Business DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 4: 12 Months in Review
4 12 Months in Review Internalised management Best governance practices Strong management team DNZ’s share price has moved from 97 cents at listing to $1.24 at 31 March 2011 Sustainable cash dividend of 8 cents per share per annum DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 5: Overview Y/E 31 March 2011
5 Overview Y/E 31 March 2011 Financial Performance year ending 31 March 2011 Distributable profit 14% Net profit before one off items and tax ✓ $19.7m Net loss after tax ($35.1m) Total Shareholder return ✓ 32% From listing date to 31 March 2011 DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUS
Slide 6: Capital Management Y/E 31 March 2011
6 Capital Management Y/E 31 March 2011 Portfolio valuation movement 1.9% Capital raise ✓ $45m Asset sales ✓ $72.2m Loan to value ratio (LVR) 40.4% Interest rate swaps ✓ $150m Renegotiated debt facilities ✓ 30/09/13 DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 7: Well Within Banking Covenants
7 Well Within Banking Covenants As at Covenant Covenant 31 March 11 Gearing Ratio < 50% 40.4% (Bank Debt/Property Values)1 Interest Cover Ratio > 1.75 x 2.14x (EBIT/Interest and Financing Costs) Fully Leased Unexpired Term2 > 3.5 years 4.18 years 1 Includes fair value of interest rate hedges 2 The u
Slide 8: Distribution Policy
8 Distribution Policy IRD Binding Tax Ruling Amended policy to distribute 75 – 85% of distributable profit Board expects to pay a minimum cash dividend of 8 cents per share for FY12 DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 9: Dividend
9 Dividend First quarter cash dividend of 2 cents per share No imputation credits Record date of 25 August 2011 Payment made on 8 September 2011 DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 10: Going Forward
10 Going Forward Review opportunities to enhance DNZ Highly regarded and experienced management team Around the bottom of the economic cycle DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 11: Going Forward
11 Going Forward Quality diversified property portfolio Continuous review and improvement of asset quality Review expansion options Dividend Reinvestment Plan DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 12: Argosy Merger Proposal
12 Argosy Merger Proposal Potential benefit to DNZ Shareholders Synergies between the two property portfolios Significant savings in combining the management of the portfolios Merged business will be one of New Zealand's largest listed property entities Benefit of DNZ’s existing robust governance st
Slide 13: Argosy Merger Proposal
13 Argosy Merger Proposal Benefit from DNZ’s highly skilled and proven management team The Board will not proceed with the proposal unless it is clearly in the best interests of DNZ Shareholders The Board will continue to monitor the situation DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST
Slide 14: Summary & Outlook
14 Summary & Outlook FY11 significant year for DNZ First internal management structure Listed on the NZX Improved liquidity & share price Strong governance Sustainable dividends Solid platform from which to grow and continue DNZ’s strong performance in FY12 DNZ PROPERTY FUND LIMITED :: ANNUAL MEETIN
Slide 15: DNZ Property Fund Limited Annual Meeting
15 DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 16: Portfolio Summary as at 31 March 2011
16 Portfolio Summary as at 31 March 2011 31 March PFI 31 March Overview 2011 31 May 2010 2010 Properties 50 55 58 Tenants 283 265 272 Net Lettable Area (m2) 371,481 379,779 397,696 WALT (years) 4.3 4.5 4.7 Occupancy Rate (by area) 97.9% 95.4% 95.6% Asset Valuation $638m $671m $700m DNZ PROPERTY FUND
Slide 17: Diversified Portfolio as at 31 March 2011
17 Diversified Portfolio as at 31 March 2011 DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 18: Portfolio Overview Y/E 31 March 2011
18 Portfolio Overview Y/E 31 March 2011 Occupancy 98% WALT 4.3 years 188 lease transactions completed over 218,205m2 Annualised rental growth from rent reviews of 3.8% p.a. Fletcher Building Laminex Group design build at O’Rorke Road, Penrose completed DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING ::
Slide 19: Top 10 Tenants as at 31 March 2011
19 Top 10 Tenants as at 31 March 2011 Top 10 tenants comprise 44% by contract rental for the total portfolio DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 20: WALT at 4.3 years as at 31 March 2011
20 WALT at 4.3 years as at 31 March 2011 DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 21: Lease Expiry Profile as at 31 March 2011
21 Lease Expiry Profile as at 31 March 2011 As at 30 June 11 2012 expiry is 7.22% NZ Post Renewed 6 years (0.94%) DDB Renewed 6 years (1.27%) Woolworths Renewed 1 years (1.77%) DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 22: Fletcher Building Laminex Group
22 Fletcher Building Laminex Group DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 23: 30 June 2011 Transaction Update
23 30 June 2011 Transaction Update 51 lease transactions completed during Q1 FY12 23 rent reviews - 54,624m2 - total rental of $7.1m 13 lease renewals - 22,056m2 - total rental of $2.7m 15 new lettings - 17,092m2 - total rental of $3.0m 20 of the 28 lease renewal and new letting transactions were ne
Slide 24: 30 June 2011 Portfolio Update
24 30 June 2011 Portfolio Update Overview 31 March 2011 30 June 2011 Properties 50 50 Tenants 283 285 Net Lettable Area (m2) 371,481 372,279 WALT (years) 4.3 4.5 Occupancy Rate (by area) 97.9% 98.1% Asset Valuation $638m $638m The increase in Net Lettable Area is due to the canopy extension at 968 G
Slide 25: Foodstuffs Portfolio
25 Foodstuffs Portfolio 3 Foodstuffs supermarkets $40.73m PAK‘n SAVE New Plymouth New World Napier New World Wellington 18 year leases Rent roll of $3.04m Annual fixed rental increases Market reviews at five yearly intervals Settlement 20 September 2011 WALT would increase to 5.17 years as at 30 Jun
Slide 26: Property Market Overview
26 Property Market Overview Office sector remains most challenging Despite challenging retail climate proactive leasing strategies are maintaining both income and occupancy levels DIY bulk retail and industrial occupancy has been the most robust DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGU
Slide 27: Property Market Overview
27 Property Market Overview Two Christchurch properties relatively undamaged Portfolio insured for full replacement and loss of rent Greater tenant interest in seismic ratings of buildings DNZ is well positioned, being diversified by sector and location, creating a defensive platform to deliver sust
Slide 28: Outlook
28 Outlook Active portfolio management Continuous review of asset mix and portfolio strength Prudent capital management Treasury/banking Value add opportunities Sustainable distribution policy DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 29: Financial Statements
29 Financial Statements C. Financial Statements To receive and consider the annual report and audited financial statements for the year ended 31 March 2011. DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 30: Q & A Company Performance
30 Q & A Company Performance In addressing the Chair with questions would you please state your name and advise whether you are a Shareholder, a proxy holder or a Shareholder company representative. I would like to remind you that only Shareholders, proxy holders or Shareholder company representativ
Slide 31: DNZ Property Fund Limited Annual Meeting
31 DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 32: Resolution 1
32 Resolution 1 Resolution 1 I move, as an ordinary resolution That the Directors be authorised to fix the fees and expenses of the auditor of the Company. Is there any discussion? Thank you, voting on this resolution will be by poll please tick the relevant box on your voting form in respect of res
Slide 33: Resolution 2
33 Resolution 2 Resolution 2 – Appointment of director I move, as an ordinary resolution That Timothy Ian Mackenzie Storey be re-elected as a director of the Company pursuant to clause 20.3 of the Constitution. Is there any discussion? Thank you, voting on this resolution will be by poll please tick
Slide 34: Resolution 3
34 Resolution 3 Resolution 3 – Appointment of director I move, as an ordinary resolution That Edward John Harvey be re-elected as a director of the Company pursuant to clause 20.3 of the Constitution. Is there any discussion? Thank you, voting on this resolution will be by poll please tick the relev
Slide 35: DNZ Property Fund Limited Annual Meeting
35 DNZ PROPERTY FUND LIMITED :: ANNUAL MEETING :: 10 AUGUST 2011
Slide 36: Thank You
36 THANK YOU DNZ Property Fund Limited Important Notice: This presentation has been prepared by DNZ Property Fund Limited. The details in this presentation provide general information only. It is not Level 4, 80 Greys Avenue intended as investment or financial advice and must not be relied upon as s
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