Investore Property Ltd. · NZX:IPL
Investore Property — H1 FY2018 Earnings Presentation
26 slides from Investore Property's earnings presentation, November 2017
Slide 1: Interim Results for the six months ended 30 September 2017
Interim Results For the six months ended 30 September 2017
Slide 2: Agenda & Contents
Agenda & Contents Page Welcome Philip Littlewood – SIML Chief Executive Highlights 3 Financial Performance 6 Jennifer Whooley – SIML Chief Financial Officer Capital Management 10 Portfolio Overview 12 Development Project 16 Asset Management Initiative 18 Philip Littlewood – SIML Chief Executive Acqu
Slide 3: Highlights
Highlights
Slide 4: Highlights: Financial Performance
Highlights (Prior six month period to 30 Sep 2016 figures in brackets) Financial Performance Profit after income tax • Net rental income of $22.2m ($13.3m) • Corporate expenses of $2.7m ($2.0m) $11.6m, up $9.3m • Profit before other income and income tax of $13.6m ($3.9m) • Profit after income tax o
Slide 5: Highlights: Portfolio
Highlights (As at 31 Mar 2017 figures in brackets) Portfolio NTA per share • Total portfolio value of $662.7m ($660.4m) • Net Tangible Assets (NTA) backing per share of $1.55 ($1.55) $1.55 • No lease expiries remaining in FY18 • FY19 lease expiries at 3.0% of the portfolio contract rental1 • Occupan
Slide 6: Financial Performance
Financial Performance
Slide 7: Financial Performance
Financial Performance Actual Actual 30 Sep 30 Sep Change 2017 2016 $m $m $m % Net rental income 22.2 13.3 8.8 66.4 Corporate expenses (2.7) (2.0) (0.8) (38.6) Profit before net finance expenses, other income/(expenses) and income tax 19.4 11.3 8.1 71.3 Net finance expenses (5.9) (7.5) 1.6 21.8 Profi
Slide 8: Distributable Profit
Distributable Profit Actual Actual 30 Sep 30 Sep Change 2017 2016 $m $m $m % Profit before income tax 14.7 2.9 11.8 404.6 Non-recurring and non-cash adjustments: - Net change in fair value of investment properties (1.2) 0.9 (2.1) (223.9) - Spreading of fixed rental increases (0.5) (0.3) (0.2) (77.9)
Slide 9: Financial Summary
Financial Summary Unaudited Audited As at As at 30 Sep 31 Mar 2017 2017 Property value ($m) 662.7 660.4 Bank debt drawn ($m) 261.0 261.0 Bank loan to value ratio 39.4% 39.5% Equity ($m) 405.1 405.0 Shares on issue (millions) 261.8 261.8 NTA per share $1.55 $1.55 Adjusted NTA¹ per share $1.54 $1.54 ¹
Slide 10: Capital Management
Capital Management
Slide 11: Capital Management
Capital Management As at As at 30 Sep 30 Sep 2017 Covenant 2017 Loan to Value Ratio Bank facility limit (ANZ, BNZ, CBA, Westpac) $370m ≤ 65% 39.4% (Bank Debt / Property Values) Interest Cover Ratio Bank debt drawn $261m ≥ 1.75x 3.4x (EBIT / Interest and Financing Costs) Weighted average cost of debt
Slide 12: Portfolio Overview
Portfolio Overview
Slide 13: Portfolio Summary
Tenant diversification based on Contract Rental1 Portfolio Summary As at 30 Sep 2017 As at 30 Sep Overview 2017 Properties 39 Tenants 74 Net Lettable Area (m2) 174,702 Occupancy Rate (by area) 99.9% WALT (years) 13.8 Portfolio Value $662.7m Geographic diversification based on Contract Rental1 As at
Slide 14: Remaining Lease Expiries FY18 & FY19
Remaining Lease Expiries FY18 & FY19 % of FY18 Net Lettable Contract Property Tenant Area (m2) Rental Nil % of FY19 Net Lettable Contract Property Tenant Area (m2) Rental Corner Anglesea & Liverpool Streets Countdown 5,265 2.0 Balance 1,294 1.0 6,559 3.0 As at 30 September 2017, 1.16% of contract re
Slide 15: Portfolio Occupancy 99.9%
Portfolio Occupancy1 99.9% As at 30 Sep 2017 Property Occupancy (%) Vacancy (m2) Total area (m2) 3 - 7 Mill Lane, Warkworth 98.0 76 3,815 Corner Hanson Street, John Street & Adelaide Road, 98.7 64 4,881 Wellington Corner Fernlea Avenue & Roberts Line 97.6 88 3,611 Other 100.0 - 162,395 Total Investm
Slide 16: Development Project
Development Project
Slide 17: Development Project
Development Project Mitre 10, Corner Te Irirangi Drive & Bishop Dunn Place, Auckland • $3m premises extension to be completed in July 2018 • 1,300m² development consisting of an extension to the trade warehouse, new inwards goods area and canopy Mitre 10, Corner Te Irirangi Drive & Bishop Dunn Place
Slide 18: Asset Management Initiative
Asset Management Initiative
Slide 19: Asset Management Initiative
Asset Management Initiative Adjoining properties acquisitions • Settlement of 12 Heaton Street, Timaru, for $0.4m • Settlement of 6 & 8 Heaton Street, Timaru, for $1.0m post 30 Sep 17 • Properties located immediately adjacent to existing Countdown property in Timaru • Opportunity to develop further
Slide 20: Acquisitions
Acquisitions
Slide 21: Acquisitions
Acquisitions Bunnings properties – subject to shareholder approval • Agreement to purchase three Bunnings properties in Hamilton, Rotorua and Palmerston North, for $78.5m at an initial yield of 6.13% • 100.0% occupancy • Long WALT of 11.75 years • Dependable income streams, with net rental of $4.81m
Slide 22: Conclusion
Conclusion
Slide 23: Conclusion
Conclusion Execution of Strategy Three Bunnings assets due • Agreement to purchase three Bunnings properties in Hamilton, for acquisition Rotorua and Palmerston North for $78.5m subject to shareholder approval $78.5m • Planning to dispose up to three properties to provide balance sheet capacity for
Slide 24: Appendix
Appendix
Slide 25: Appendix
Appendix 1 Investore Property Limited – Interim Results Presentation for the six months ended 30 September 2017 25
Slide 26: Thank you
Important Notice: The information in this presentation is an overview and does not contain all information necessary to make an investment decision. It is intended to constitute a summary of certain information relating to the performance of Investore for the six months ended 30 September 2017. Plea