Investore Property Ltd. · NZX:IPL
Investore Property — FY2024 Earnings Presentation
28 slides from Investore Property's earnings presentation, May 17, 2024
Slide 1: Annual Results Presentation
Annual Results Presentation For the year ended 31 March 2024 17 May 2024
Slide 2: Contents
Contents Financial overview 03 Key metrics 04 Portfolio 05 Sustainability 13 Financial performance 16 Capital management 20 Looking ahead 23 Appendices 25 Investore Property Limited | FY24 Annual Results Presentation 2
Slide 3: Financial overview
McDonalds, Takanini Financial overview For the 12 months ended 31 Mar 24 (FY24) Profit before other expense and income tax $35.1m in line with FY23 at $35.2m Loss after income tax $(67.1)m due to a net reduction in fair value of investment properties of $(98.7)m, which compares with FY23 loss after
Slide 4: Key metrics: portfolio metrics and capital management
Portfolio metrics Capital management $1.0bn 6.55% 4.3% 40.8% Portfolio valuation1 Initial yield2 Weighted average Loan to Value Ratio3 a net reduction in fair value of (9.1)% or as at 31 Mar 24 as at 31 Mar 24 $(98.7)m over 12 months to 31 Mar 24 cost of debt as at 31 Mar 24 6.37% 7.4 years Average
Slide 5: Portfolio
Portfolio Woolworths, Newtown Investore Property Limited | FY24 Annual Results Presentation 5
Slide 6: Active portfolio management
Active portfolio management Investment portfolio metrics • 65 rent reviews completed over 96,000sqm resulting in As at As at +3.1% increase on prior rentals 31 Mar 241 31 Mar 234 • 57 of the rent reviews completed were structured reviews Investment portfolio value2 ($m) 972 1,033 i.e. CPI or fixed.
Slide 7: Woolworths Waimakariri Junction
Woolworths Waimakariri Junction Investore successfully completed the development of the new Woolworths at Waimakariri Junction, Kaiapoi in Nov 23. The total cost of the development was circa $26.1m (incl. land), and was delivered within budget and on time Key features include: Woolworths, Waimakarir
Slide 8: Portfolio optimisation
Portfolio optimisation Investore benefits from owning 36 Woolworths supermarkets, resulting in a strong relationship which fosters collaboration across the portfolio During FY24, Investore undertook a number of improvement projects in collaboration with Woolworths to enhance the overall portfolio, i
Slide 9: Long dated lease expiry profile
Long dated lease expiry profile Long portfolio WALT1 of 7.4 years, Lease Expiry Profile3 by Contract Rental2 As at 31 March 2024 with 78% of Contract Rental2 expiring in FY30 or beyond 27.8% FY25 4.4% Contract Rental expiring: WALT • Woolworths leased properties at Maidstone 7.4 years (1.2%) and One
Slide 10: Key tenants meeting daily needs
Key tenants meeting daily needs Investore's portfolio consists of quality, well-located large format retail properties with tenants that attract regular visitation, including supermarkets, hardware stores, general merchandise and health & wellbeing, enhancing the portfolio's resilience Everyday Need
Slide 11: Geographically Diversified Portfolio
Geographically Diversified Portfolio Investore’s portfolio is geographically diversified across New Zealand with the majority of the portfolio located in highly populated urban areas such as Auckland, Wellington, Canterbury, Waikato and the Bay of Plenty. Anchor tenants represent 87% of Investore’s
Slide 12: Turnover Rent
Turnover Rent Woolworths supermarket portfolio turnover mix (weighted by MAT)2 • The leases for Woolworths stores, which make up 64% of the portfolio's Contract Rental1, include a turnover rent component, where additional rent is paid once store sales, or Moving Annual 40% 38% 37% 39% 39% 42% Turnov
Slide 13: Sustainability
Sustainability Woolworths, Mt Roskill Investore Property Limited | FY24 Annual Results Presentation 13
Slide 14: Sustainability
Sustainability Investore considers that it has very low scope 1 and 2 emissions (for FY24, 25.1 tCO2-e), primarily from refrigerants used in air conditioning systems and electricity for lighting To reduce refrigerant emissions, Investore has developed a programme to replace air conditioning units th
Slide 15: Woolworths Waimakariri Junction
Woolworths Waimakariri Junction 5 Green Star Design rated, targeting 5 Green Star As Built, the “New Zealand excellence” standard Operational efficiency Benefits to people Sustainable construction • Solar panels installed • Durable, low toxicity materials used • Utilisation of low carbon concrete an
Slide 16: Financial Performance
Financial Performance Mitre 10 MEGA, Botany Investore Property Limited | FY24 Annual Results Presentation 16
Slide 17: Financial performance
Financial performance Change 31 Mar 24 31 Mar 23 $m $m $m % Net rental income 61.2 60.3 +1.0 +1.6 Corporate expenses (8.1) (8.9) +0.7 +8.1 Profit before net finance expense, other expense and income tax 53.1 51.4 +1.7 +3.3 Net finance expense (18.0) (16.2) (1.8) (11.0) Profit before other expense an
Slide 18: Distributable profit
1 Distributable profit Change 31 Mar 24 31 Mar 23 $m $m $m % Loss before income tax (63.6) (150.1) +86.4 +57.6 Non-recurring, non-cash items, and other adjustments: - Net change in fair value of investment properties 98.7 185.2 (86.5) (46.7) - Borrowings establishment costs amortisation 1.0 0.9 +0.0
Slide 19: Financial summary
Financial summary As at As at 31 Mar 24 31 Mar 23 Change Investment property value ($m)1 989.4 1,062.1 (72.7) Drawn debt ($m) (402.8) (387.6) +15.2 Loan to Value Ratio (LVR)2 40.8% 36.5% +4.3% Equity ($m) 587.1 675.0 (88.0) Shares on issue (millions) 373.8 367.5 +6.3 Net Tangible Assets (NTA) per sh
Slide 20: Capital Management
Capital Management Investore Property Limited | FY24 Annual Results Presentation 20
Slide 21: Proactive capital management
Proactive capital management As at As at 3 • $100m increase in bank facilities to provide liquidity for maturity Debt facilities Pro forma 31 Mar 24 31 Mar 23 of IPL010 bond in Apr 24; no debt now maturing until FY26 Debt facilities limit • Dividend reinvestment plan (DRP) implemented; an average of
Slide 22: Hedging and cost of debt
Hedging and cost of debt As at As at • As at 31 Mar 24, 88% of drawn debt is hedged or subject Cost of debt Pro forma1 31 Mar 24 31 Mar 23 to a fixed interest rate Weighted average cost of debt • Investore continues to benefit from high levels of fixed (incl. current interest rate rate debt at below
Slide 23: Looking Ahead
Woolworths, Waimakariri Junction Looking Ahead (in development) Investore Property Limited | FY24 Annual Results Presentation 23
Slide 24: Looking ahead
Looking ahead • Current macroeconomic conditions remain soft and higher interest rates have impacted property transaction volumes. However, valuations are stabilising and interest rate cuts are forecast to start occurring later this financial year which creates opportunities • Recent changes to rule
Slide 25: Appendices
Appendices Bunnings, Rotorua Investore Property Limited | FY24 Annual Results Presentation 25
Slide 26: Appendix A
Appendix A Profit before other expense and income tax $0.8m $0.7m ($0.1m) $0.8m ($0.5m) ($1.8m) $35.2m $35.1m FY23 Net rental increase Net rental increase Net rental decrease Lower management Higher Higher net finance FY24 from development from existing from IFRS fee expense administration expense a
Slide 27: Appendix B
Appendix B Net Contract Rental1 $0.2m $0.6m $1.4m ($0.5m) $63.7m $61.9m As at Woolworths Renewals / Rent reviews Other As at 31 Mar 23 Waimakariri Junction new lettings 31 Mar 24 Investment Properties (excl. lease liabilities) $3.7m $22.5m ($0.3m) ($98.6m) $1,062.1m $989.4m As at Net change in fair
Slide 28: Thank you
Thank you Level 12, 34 Shortland Street Auckland 1010, New Zealand PO Box 6320, Victoria Street West, Auckland 1142, New Zealand P +64 9 912 2690 W investoreproperty.co.nz Important Notice: The information in this presentation is an overview and does not contain all information necessary to make an