Slide 1: FY21 Results
FY21 RESULTS
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by National direct or indirect loss or damage which may be These forward-looking statements are not or any change in the events, conditions or Storage REIT (“NSR”) comprising National Storage suffered through the use, or reliance on, anything guarantees
Slide 3: Ipswich, QLD North Lakes, QLD Biggera Waters, QLD
Ipswich, QLD North Lakes, QLD Biggera Waters, QLD Montrose, TAS Robina, QLD Butler, WA Tullamarine, VIC Brendale, QLD Canterbury, VIC
Slide 4: Agenda
AGENDA ▪ FY21 Results Summary ▪ Financial Results ▪ Operational Update and COVID-19 ▪ Key Operating Metrics ▪ Strategy - Four Pillars of Growth ▪ Organic Growth ▪ Acquisitions ▪ Development and Expansion ▪ Technology and Innovation ▪ Guidance FY22 4
Slide 5: FY21 Highlights
FY21 HIGHLIGHTS A-IFRS PROFIT $309.7 MILLION (EPS 30.21 CENTS) | UNDERLYING EPS 8.5 CENTS GROUP GROUP WEIGHTED UNDERLYING AVERAGE PRIMARY TOTAL OCCUPANCY2 REVPAM2 EARNINGS1 CAP RATE ASSETS5 AUS & NZ $86.5m 86.1% $227 5.98% $3.25b (Up 28%) (Up 8.5%) (Up 22.8%) (Firmed 51bps) (Up 32%) AUSTRALIAN AUSTR
Slide 6: Profit and Loss for the Year Ended June 2021
PROFIT AND LOSS FOR THE YEAR ENDED 30 JUNE 2021 STRATEGY CONTINUES TO $ Million FY21 FY20 % Change DELIVER SUPERIOR GROWTH Storage revenue 193.5 159.5 21% Sales of goods and services 11.8 7.6 55% Other revenue 9.3 7.5 24% Total Revenue 214.6 174.6 23% ▪ FY21 performance Cost of Goods Sold 5.4 3.6 50
Slide 7: Exceptional Profile of Growth and Returns
EXCEPTIONAL PROFILE OF GROWTH AND RETURNS 8 YEAR CAGR IN UNDERLYING EARNINGS OF c.26% UNDERPINNED BY FOUR PILLAR GROWTH STRATEGY ▪ Consistent revenue and earnings growth trajectory since IPO Total Revenue $250.0 ▪ Revenue growth of 306% and underlying earnings1 growth of 344% since the December 2013
Slide 8: Built Capacity
BUILT CAPACITY OPPORTUNITY FOR CONTINUED OPERATIONAL IMPROVEMENT Total NLA 1,200,000 ▪ Significant growth remains in existing built capacity (NLA) derived from historical acquisition and development activity ▪ Australian and NZ Portfolio1 total NLA – 1,100,000m2 1,000,000 ▪ Target occupancy 87.5% -
Slide 9: Summary Balance Sheet
SUMMARY BALANCE SHEET AS AT 30 JUNE 2021 NTA UPLIFT AND BALANCE SHEET GEARING PROVIDES CAPACITY FOR GROWTH $ Million Jun 21 Jun 20 Movement ▪ NTA increased by 15% to $1.89 per stapled security Cash 95.9 90.4 5.5 (June 2020: $1.65) Investment Properties 1 2,950.9 2,288.0 662.9 Intangible Assets 47.2
Slide 10: NTA and Total Returns
NTA AND TOTAL RETURNS TRACK RECORD OF SOLID GROWTH CONTINUES NTA per security 2.00 $1.89 $1.77 ▪ Consistent NTA per stapled security growth trajectory since IPO 1.80 $1.63 $1.65 $1.72 1.60 $1.51 $1.52 ▪ Representing a CAGR of 9.9% per annum for $1.34 $1.41 1.40 securityholders 1.20 $1.11 $1.12 $1.14
Slide 11: Capital Management
CAPITAL MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2021 STRONG BALANCE SHEET TO FUND CONTINUED ACQUISITION, Capital Management Jun-21 Jun-20 DEVELOPMENT AND EXPANSION GROWTH Cash Balance $95.9m $90.4m Total debt facilities1 $1,164m $1,142m ▪ Gearing 22% - ICR 3.7x Total debt drawn $760m $685m Remaining d
Slide 12: Key Operational Metrics - REVPAM
KEY OPERATIONAL METRICS - REVPAM ACTIVE MANAGEMENT OF RATE AND OCCUPANCY TO MAINTAIN MOMENTUM 230 GROUP REVPAM 220 210 ▪ Driving REVPAM by balancing occupancy and rate growth on a 200 centre and individual unit basis 190 180 170 ▪ Revenue management strategies delivering excellent results ▪ Sustaine
Slide 13: Key Operational Metrics - Occupancy
KEY OPERATIONAL METRICS - OCCUPANCY RECORD OCCUPANCY GROWTH DURING FY21 Group Occupancy 90.0% 80.0% ▪ Group occupancy 86.1% (+8.5%) ▪ Australian Portfolio 86.2% (+9.7%) 70.0% ▪ New Zealand Portfolio 85.4% (+1.0%) 60.0% 50.0% ▪ Continued strong occupancy growth Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-
Slide 14: Operational Update
OPERATIONAL UPDATE FOCUS ON OPERATIONAL EFFICIENCY AND BEST PRACTICE OUTCOMES ▪ Centre Efficiency Program – new platform launched and functioning across all revenue channels (call centre, centres and website) targeting delivery of an exceptional customer experience and improved conversion rates ▪ In
Slide 15: Customer Satisfaction
CUSTOMER SATISFACTION MARKET LEADING CUSTOMER SATISFACTION AND INDUSTRY RECOGNITION ▪ NSR’s commitment to excellence recognised with NSR being awarded the coveted 2020 Canstar Blue Customer Satisfaction Award for self-storage, receiving 5-stars in all categories ▪ NSR has also previously won Canstar
Slide 16: Sustainability
SUSTAINABILITY NSR HAS A LONG TERM COMMITMENT TO ESG ▪ NSR is committed to meeting its commitment to sustainability across the environmental, social and governance landscape ▪ NSR’s ESG strategy focuses on three key pillars most relevant for the business: Commitment to Sustainability Our Economic ▪
Slide 17: Sustainability
SUSTAINABILITY REDUCING OUR CLIMATE IMPACT • NSR continues to consider climate change as an ongoing risk, which is continually measured and mitigated • NSR has engaged the Carbon Reduction Institute to conduct a NoCO2 Audit to measure its carbon footprint in accordance with international best practi
Slide 18: NSR Strategy: Four Pillars of Growth
NSR STRATEGY FOUR PILLARS OF GROWTH ORGANIC GROWTH ACQUISITIONS DEVELOPMENT TECHNOLOGY AND AND EXPANSION INNOVATION NSR achieves organic NSR has executed over NSR has highly developed NSR leads the Australasian growth through a 150 high-quality and proven in-house storage industry with new combinati
Slide 19: Organic Growth
ORGANIC GROWTH PORTFOLIO OPTIMISATION - BALANCING RATE AND OCCUPANCY GROWTH ▪ Detailed data collection across the group identifying specific areas of opportunity to maximise occupancy, rate and revenue ▪ Contact Centre optimisation through resourcing highly skilled leadership, staffing structure and
Slide 20: Acquisitions
ACQUISITIONS AUSTRALASIA’S NO. 1 ACQUIRER OF HIGH-QUALITY, INDEPENDENTLY OWNED STORAGE CENTRES ▪ Focus on “value” acquisitions New Zealand PORTFOLIO VALUE (A$ MILLION) Australia ▪ NSR remains acquirer of choice: - - - - 6 8 8 11 11 13 14 22 23 23 25 25 38 41 49 54 59 68 97 102 107 117 127 141 154 16
Slide 21: Acquisitions – FY21
ACQUISITIONS – FY21 25 ACQUISITIONS TOTALLING $352M TRANSACTED NUMBER OF NLA REGION CENTRES (M2) Melbourne 10 47,500 ▪ 22 centres and three development sites acquired to 30 June 2021 for $352m Sydney 2 13,100 Brisbane 2 13,400 ▪ Major strategic portfolio acquisition in Melbourne of nine centres with
Slide 22: Development and Expansions
DEVELOPMENT AND EXPANSIONS INCREASING FOCUS ON DEVELOPMENT AND EXPANSION PROJECTS ▪ Target projects providing additional built capacity in key markets 10 projects completed during FY21, adding 59,100m2 of NLA ▪ Locations selected after extensive heat mapping based on socio- economic demographics and
Slide 23: Development
DEVELOPMENT TARGETED DEVELOPMENT PROVIDING ADDITIONAL UNIT PIPELINE IN KEY AREAS Overview ▪ Target projects providing additional pipeline in key areas ▪ Four projects completed during FY21 (29,500m2 of NLA) ▪ 15 active projects, with 7 projects under construction ▪ Aggregate NLA pipeline of approxim
Slide 24: Expansion
EXPANSION EXPANSION AND REVIVE PROJECTS PROVIDING SIGNIFICANT VALUE ADD POTENTIAL Overview ▪ Use of existing NSR owned land in proven locations ▪ 6 projects completed during FY21 (29,500m2 of NLA) ▪ 7 active projects ▪ Aggregate NLA pipeline of approximately 47,000m2 Expansions – Existing centres ▪
Slide 25: Technology
TECHNOLOGY HARNESSING NEW TECHNOLOGY AND INNOVATION FOR ENHANCED BUSINESS OUTCOMES ▪ Business automation initiatives continue to form part of our technology roadmap, with a pipeline of technology projects planned ▪ Key business process improvement initiatives include: ▪ Automation of the customer qu
Slide 26: Technology (cont.)
TECHNOLOGY (cont.) IT RISK ASSESSMENTS AND MITIGATION ▪ IT and Cyber Security Program ▪ Enhanced Security ▪ Antivirus software ▪ Email Filtering software ▪ Managed firewall ▪ 24-hour vulnerability monitoring ▪ Audit of our external application providers ▪ Audit of National Storage by external provid
Slide 27: FY22 Guidance & Outlook
FY22 GUIDANCE & OUTLOOK DISTRIBUTION GUIDANCE 90% - 100% OF UNDERLYING EARNINGS UNDERLYING EPS 1 UNDERLYING EARNINGS PER STAPLED SECURITY Minimum 10% growth Greater than $110 million 1 – NSR provides this guidance assuming there are no material changes in market conditions or operating environments,
Slide 28: Thank You
THANK YOU invest@nationalstorage.com.au www.nationalstorage.com.au
Slide 29: Appendices
APPENDICES 29
Slide 30: Case Study - Expansion
CASE STUDY 1 - EXPANSION MITCHELL – ACT Optimisation of existing centre with available hardstand ▪ NLA: 14,300m2 BEFORE ▪ Target Stabilised ▪ Additional NLA: Occupancy: 90% 6,800m2 ▪ NLA: 7,500m2 ▪ Valuation (Dec 20): ▪ Construction Time: $54m (based on ▪ Occupancy: 93% 12 months 85% occupancy) ▪ Va
Slide 31: Case Study - Repurpose
CASE STUDY 2 - REPURPOSE BIGGERA WATERS – GOLD COAST Repurpose of regional retail space ▪ Convert existing market place to storage ▪ Construction of purpose built storage on carpark ▪ Existing market place ▪ Storage NLA: 9,900m2 building ▪ Construction cost: $14m ▪ 150 carpark spaces ▪ Construction
Slide 32: Sustainability: Pillar 1 Our Economic Performance
SUSTAINABILITY PILLAR 1: Our Economic Performance ▪ NSR’s economic performance focuses on optimisation of operational systems in an efficient and effective fashion. ▪ Highlights include: Energy ▪ Solar ▪ Continued investment since 2017 in two phase installation program Efficiency ▪ 7,675 solar panel
Slide 33: Sustainability (cont.): Pillar 2 Our People
SUSTAINABILITY (cont.) PILLAR 2: Our People ▪ Highly valued team of professional people critical to NSR’s present and future success Employment by Gender March 2021 ▪ Highlights include: Pride in Diversity ▪ Policies and targets in place to meet NSR’s commitment to diversity and inclusion: ▪ Target
Slide 34: Sustainability (cont.): Pillar 3 Our Transformation
SUSTAINABILITY (cont.) PILLAR 3: Our Transformation ▪ Brand and service strategies focused on providing excellence in customer experience ▪ Highlights include: Customer ▪ Brand and service strategies remain focused on excellence in customer service Experience ▪ New sales training program to assist t
Slide 35: NSR Footprint
NSR FOOTPRINT *includes all centres managed, operated and licensed as National Storage as at 30 June 2021 35
Slide 36: Portfolio Metrics
PORTFOLIO METRICS 30 June 2020 30 June 2021 AUST NZ MGT TOTAL AUST NZ MGT TOTAL Freehold centres 147 23 2 172 167 25 3 195 Leasehold centres 14 - - 14 14 - - 14 Total centres 1 161 23 2 186 181 25 3 209 Freehold NLA (sqm) 746,100 123,500 4,100 873,700 881,400 132,300 14,100 1,027,800 Leasehold NLA (
Slide 37: Notes
NOTES 37