Stride Property Group · NZX:SPG
Stride Property — DNZ Property Fund — H1 FY2012 Earnings Presentation
21 slides from Stride Property's earnings presentation, Nov 17, 2011
Slide 1: Interim Results for the Half Year Ended 30 September 2011
INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2011
Slide 2: Agenda & Contents
2 Agenda & Contents Page Introduction Tim Storey Chairman Highlights 3 Paul Duffy Chief Executive Financial Performance 5 Jennifer Whooley Chief Financial Officer Capital Management 9 Property Portfolio 11 Paul Duffy Market Overview 17 Chief Executive Outlook 20 Q&A DNZ PROPERTY FUND LIMITED :: INTE
Slide 3: DNZ PROPERTY FUND LIMITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2011
3 DNZ PROPERTY FUND LIMITED :: INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2011 :: 17 NOVEMBER 2011
Slide 4: Highlights
4 Highlights Increased cash dividend Q2 FY12 Q2 DIVIDEND 2.1 CENTS 2.1 cent cash dividend for the quarter (nil imputation credits) 8.3 cent cash dividend expected for FY12 LVR 37.8% Full year distribution expected to remain within the dividend policy range of 75-85% of distributable profit OCCUPANCY
Slide 5: DNZ PROPERTY FUND LIMITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2011
5 DNZ PROPERTY FUND LIMITED :: INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2011 :: 17 NOVEMBER 2011
Slide 6: Distributable Profit – Consolidated Group
6 Distributable Profit – Consolidated Group Actual Actual Variance 30 Sept 2011 30 Sept 2010 ($ millions) ($ millions) ($ millions) Net profit/(loss) before tax 11.0 (26.1) 37.1 NZ IFRS and other adjustments: - Net change in fair value of investment properties 1.0 (0.1) 1.1 - Net change in fair valu
Slide 7: Financial Performance – Consolidated Group
7 Financial Performance – Consolidated Group Actual Actual Variance 30 Sept 2011 30 Sept 2010 (restated) ($ millions) ($ millions) ($ millions) Net rental income 25.9 25.9 - Management fee income 0.6 0.3 0.3 Corporate expenses (3.8) (5.4) 1.6 Operating profit before net finance expenses and income t
Slide 8: Financial Summary
8 Financial Summary As at As at 30 Sept 2011 31 March 2011 ($ millions) ($ millions) Property values1 608.2 637.7 Bank debt drawn 222.0 252.9 2 Bank loan to value ratio 37.8% 40.4% Equity 378.9 382.3 Shares on issue 247.6 246.6 NTA per share 3 $1.52 $1.54 Adjusted NTA per share4 $1.54 $1.55 1 Assets
Slide 9: DNZ PROPERTY FUND LIMITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2011
9 DNZ PROPERTY FUND LIMITED :: INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2011 :: 17 NOVEMBER 2011
Slide 10: Capital Management
10 Capital Management As at Covenant Covenant 30 Sept 2011 Loan to Value Ratio (Bank Debt / Property Values) < 50% 37.75% Interest Cover Ratio (EBIT / Interest and Financing Costs) > 1.75 x 2.29 x Fully Leased Unexpired Term1 > 3.5 years 4.39 years Banking facility reduced from $350m to $300m (28 Se
Slide 11: DNZ PROPERTY FUND LIMITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2011
11 DNZ PROPERTY FUND LIMITED :: INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2011 :: 17 NOVEMBER 2011
Slide 12: Portfolio Summary
12 Portfolio Summary Overview 30 Sept 2011 31 March 2011 30 Sept 2010 Properties 48 50 54 Tenants 261 283 279 Net Lettable Area (m2) 360,683 371,481 379,934 WALT (years) 4.5 4.3 4.4 Occupancy Rate (by area) 98.3% 97.9% 96.1% Asset Valuation $608m $638m $700m The above graphs are as at 30 September 2
Slide 13: Major Lease Transactions Completed
13 Major Lease Transactions Completed Contract Tenant Commencement Area m2 Term Rental $ Goodyear & Dunlop Tyres1 September 2015 9,730 6 years Market 2015 New Zealand Post September 2011 6,027 6 years 550,000 DDB June 2012 3,659 6 years 921,000 Carter Holt Harvey December 2012 3,340 6 years 363,000
Slide 14: Major Lease Expiries
14 Major Lease Expiries FY Property Tenant NLA m2 2013 Columbia Avenue, Christchurch Progressive 12,665 2013 20 Rockridge Ave, Auckland CEVA 10,239 2013 35 Maclaggan Street, Dunedin The Warehouse 6,433 2013 1 Grey Street, Wellington Westpac 4,266 2013 1 Grey Street, Wellington MFAT 1,586 2013 1 Grey
Slide 15: Portfolio Occupancy
15 Portfolio Occupancy Occupancy (%) Occupancy (%) Vacancy (sqm) Net Lettable Area Property 31 March 2011 30 Sept 2011 30 Sept 2011 (sqm) 30 Sept 2011 8 Rockridge Avenue, Penrose 74% 74% 811 3,112 650 Great South Road, Greenlane 93% 75% 2,095 8,390 80 Greys Avenue 87% 100% - 5,457 7 - 9 Fanshawe Str
Slide 16: Foodstuffs Portfolio
16 Foodstuffs Portfolio Three properties in Napier, New Plymouth and Wellington Settled 4 October 2011 $40.7m 18 year leases to Foodstuffs (Wellington) Co-op Limited WALT increases to 5.23 years equivalent as at 30 September 2011 DNZ PROPERTY FUND LIMITED :: INTERIM RESULTS FOR THE HALF YEAR ENDED 3
Slide 17: DNZ PROPERTY FUND LIMITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2011
17 DNZ PROPERTY FUND LIMITED :: INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2011 :: 17 NOVEMBER 2011
Slide 18: Total Returns
18 Total Returns Wellington yields have begun to soften, with earthquake risk becoming more paramount Auckland yields have stabilised during the year and are expected to improve as confidence returns and vacancy is absorbed DNZ asset values remain stable as at 30 September 2011 DNZ PROPERTY FUND LIM
Slide 19: DNZ PROPERTY FUND LIMITED INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2011
19 DNZ PROPERTY FUND LIMITED :: INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2011 :: 17 NOVEMBER 2011
Slide 20: Outlook
20 Outlook Capital Management Secured (post 30/09/2011) a revised $300m bank term debt bank facility effective from 31/10/2011 Evenly split with existing bankers ANZ, BNZ and CBA The facility comprises a $150m three year tranche and a $150m four year tranche, expiring in October 2014 and October 201
Slide 21: Thank You
21 THANK YOU Important Notice: Certain statements in this presentation constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors (many of which are beyond the control of DNZ) which may cause the actual results