Stride Property Group · NZX:SPG
Stride Property — H1 FY2016 Earnings Presentation
27 slides from Stride Property's earnings presentation, Nov 12, 2015
Slide 1: Interim Result
Interim Result For the six months ended 30 September 2015 12 November 2015
Slide 2: Agenda & Contents
Agenda & Contents Page Highlights 3 Peter Alexander – Chief Executive Financial Performance 6 Jennifer Whooley – Chief Financial Officer Capital Management 10 Portfolio Overview 12 Development Projects 17 Acquisitions 19 Peter Alexander – Chief Executive Strategy Overview 21 Conclusion 23 Appendix 2
Slide 3: Highlights
Highlights Stride Property Limited — Interim Results Presentation for the six months ended 30 September 2015 – 12 November 2015 3
Slide 4: Highlights – Financial Performance
Highlights (Prior period 30 September 2014 figures in brackets) Financial Performance • Net rental income of $28.0m ($29.0m) • Corporate expenses of $3.7m ($3.0m) • Operating profit before other income and income tax of $18.9m ($20.1m) • Net profit after income tax of $34.1m ($26.0m) • Distributable
Slide 5: Highlights – Portfolio
Highlights (Prior period 31 March 2015 figures in brackets) Portfolio • Net 2.1% property portfolio valuation increase¹ • Net Tangible Assets (NTA) backing per share increased to $1.83 ($1.81) Net valuation increase • 103 lease transactions over 181,578m2 for a total annual rental of $26.5m • • • FY
Slide 6: Financial Performance
Financial Performance Stride Property Limited — Interim Results Presentation for the six months ended 30 September 2015 – 12 November 2015 6
Slide 7: Financial Performance
Financial Performance Consolidated Group Change Actual Actual 30 Sep 2015 30 Sep 2014 ($ millions) ($ millions) $ millions % Net rental income 28.0 29.0 (1.0) (3.4) Management fee income 0.9 0.7 0.1 19.1 Corporate expenses (3.7) (3.0) (0.7) (22.5) Operating profit before net finance expenses, other
Slide 8: Distributable Profit
Distributable Profit Consolidated Group Change Actual Actual 30 Sep 2015 30 Sep 2014 ($ millions) ($ millions) $ millions % Net profit before income tax 37.4 30.9 6.5 20.9 NZ IFRS and other adjustments: - Net change in fair value of investment properties (18.3) (10.7) (7.5) (70.2) - Net change in fa
Slide 9: Financial Summary
Financial Summary As at As at 30 Sep 2015 31 Mar 2015 Property value1 ($ millions) 949.3 872.4 Bank debt drawn ($ millions) 366.4 305.9 Bank loan to value ratio 38.6% 35.1% Equity ($ millions) 547.4 541.5 Shares on issue (millions) 297.2 297.2 NTA per share2 (refer Appendix 1) $1.83 $1.81 Adjusted N
Slide 10: Capital Management
Capital Management Stride Property Limited — Interim Results Presentation for the six months ended 30 September 2015 – 12 November 2015 10
Slide 11: Capital Management
Capital Management As at As at As at Covenant 30 Sep 2015 30 Sep 2015 31 Mar 2015 Loan to Value Ratio (Bank Debt / Bank facility limit ≤ 50% 38.6% $400m $400m Property Values) (ANZ, BNZ, CBA, Westpac) Interest Cover Ratio (EBIT / Interest ≥ 1.75 x 2.92x Bank debt drawn $366m $306m and Financing Cost
Slide 12: Portfolio Overview
Portfolio Overview Stride Property Limited — Interim Results Presentation for the six months ended 30 September 2015 – 12 November 2015 12
Slide 13: Portfolio Summary
Portfolio Summary Top Ten Tenants3 by Contract Rental1 Lease Expiry Profile3 by Contract Rental1 As at 30 September 2015 As at 30 September 2015 % of Portfolio Contract Rental % of Portfolio Contract Rental As at As at Overview 30 Sep 2015 31 Mar 2015 Properties 41 41 Tenants 396 281 Net Lettable 36
Slide 14: Major Lease Transactions Completed
Major Lease Transactions Completed Annual Contract Term Rental Tenant Property Commencement Area (m2) (years) ($000) The Warehouse 35 MacLaggan Street, Dunedin Aug 2015 6,433 3 819 NZ Post 65 Chapel Street, Tauranga Apr 2015 2,947 6 417 Tasman Liquor Company 22 Ha Crescent, Auckland Jul 2015 8,757 3
Slide 15: Remaining Lease Expiries FY16 & FY17
Remaining Lease Expiries FY16 & FY17 FY16 Net Lettable Area % of Property Tenant (m2) Contract Rental Johnsonville Shopping Centre, Wellington Various 3,795 1.03 Balance 910 0.59 4,705 1.62 As at 30 September 2015, 1.62% of contract rental expiries remained in FY16 (5.81% as at 31 March 2015). FY17
Slide 16: Portfolio Occupancy 99.2% (by area)
Portfolio Occupancy 99.2% (by area) Occupancy (%) Vacancy (m2) Total Area (m2) Occupancy (%) Property 30 Sep 2015 30 Sep 2015 30 Sep 2015 31 Mar 2015 7-9 Fanshawe Street, Auckland 96.9 165 4,804 100.0 650 Great South Road, Auckland 100.0 - 8,335 84.3 1 Grey Street, Wellington 96.5 369 10,475 98.2 22
Slide 17: Development Projects
Development Projects Stride Property Limited — Interim Results Presentation for the six months ended 30 September 2015 – 12 November 2015 17
Slide 18: Development Projects
Development Projects NorthWest Shopping Centre NorthWest Two • Opened 1 October 2015 • Construction commenced • GFA 34,000m² / NLA 27,000m² • Will comprise four separate buildings offering 7,700m² of • Features 100 retail stores, 1,100 car parks, a retail, dining and office space 8,000m² Farmers fla
Slide 19: Acquisitions
Acquisitions Stride Property Limited — Interim Results Presentation for the six months ended 30 September 2015 – 12 November 2015 19
Slide 20: Acquisitions
Acquisitions 35 Teed St, Auckland • Purchase price of $17.0m, providing a yield of 7.0% • Settled 30 June 2015 • Occupies a high profile site on the corner of Teed Street and Gillies Avenue, and is located immediately adjacent to Stride’s property at 25 Teed Street • Provides opportunities to add va
Slide 21: Strategy Overview
Strategy Overview Stride Property Limited — Interim Results Presentation for the six months ended 30 September 2015 – 12 November 2015 21
Slide 22: Strategy Overview
Strategy Overview Investment Strategy • Stride is building a portfolio of places with enduring demand, that attract the highest demand in all market conditions, because it meets the needs of our customers, their staff, their visitors and our customers’ customers. • Stride identifies attributes that
Slide 23: Conclusion
Conclusion Stride Property Limited — Interim Results Presentation for the six months ended 30 September 2015 – 12 November 2015 23
Slide 24: Conclusion
Conclusion Execution of Strategy • Annual cash dividend increased from 10.25 cps for FY15 to 10.75 cps for FY16 • Targeting annual cash dividend for FY17 of at least 11.25 cps • NorthWest Shopping Centre opened 1 October 2015 • NorthWest Two development commenced • Capital raising initiatives undert
Slide 25: Appendix
Appendix Stride Property Limited — Interim Results Presentation for the six months ended 30 September 2015 – 12 November 2015 25
Slide 26: Appendix 1
Appendix 1 Stride Property Stride Limited Property — Interim Limited Results — Interim Presentation Results for the six Presentation formonths the six ended months30ended September 2015 – 12 2015 30 September November 2015 – 12 November 2015 26 26
Slide 27: Thank you
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 Stride for the six months ended 30 September 201
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