Precinct Properties Nz Ltd & Precinct Properties Investments Ltd · NZX:PCT
Precinct Properties Nz Ltd & Precinct Properties Investments — Precinct Properties New Zealand — Investor Presentation (June 2021)
26 slides from Precinct Properties Nz Ltd & Precinct Properties Investments's investor presentation, Jun 18, 2021
Slide 1: Equity Raising: Placement and retail offer
Equity Raising Placement and retail offer 18 June 2021 PRECINCT PROPERTIES, 2021 EQUITY RAISE Slide 1 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Precinct Properties New Zealand Limited (Precinct). This presentation has been prepared in relation to the offer of new shares in Precinct (New Shares) by way of a: • Placement to selected institutional investors (Placement); and • Retail offer to Pr
Slide 3: Disclaimer
Disclaimer Future performance: This presentation includes forward-looking statements. Forward-looking statements can generally be identified by the use of forward-looking words such as “expect”, “forecast”, “estimate”, “like”, “anticipate”, “project”, “opinion”, "outlook", "guidance", “should”, “cou
Slide 4: Disclaimer
Disclaimer Financial data: All dollar values are in New Zealand dollars (NZ$ or NZD) unless otherwise stated. Disclaimer: None of the underwriter, nor any of its or Precinct's respective advisers or any of their respective affiliates, related bodies corporate, directors, officers, partners, employee
Slide 5: Disclaimer: International selling restrictions
Disclaimer International selling restrictions This presentation does not constitute an offer of New Shares of Precinct in any jurisdiction in which it would be unlawful. In particular, this presentation may not be distributed to any person, and the New Shares may not be offered or sold, in any count
Slide 6: Disclaimer
Disclaimer Japan The New Shares have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948), as amended (the "FIEL") pursuant to an exemption from the registration requirements applicable to a private placement of
Slide 7: Disclaimer
Disclaimer United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000, as amended ("FSMA"
Slide 8: The Offer
$250 million Placement & Retail Offer $141 million of Wellington acquisitions The Offer Development opportunity Capital management initiative Placement and retail offer - June 2021 Slide 8 Not for distribution or release in the United States
Slide 9: Transaction rationale
Transaction rationale 1. Strategic Wellington acquisitions: • Bowen House and Freyberg Building strategically located in the heart of government precinct • Opportunity to invest into a strong Wellington office market with solid corporate and government demand for well located 100% NBS buildings • Ac
Slide 10: Business and strategy overview
Business and strategy overview Precinct is a specialist city centre real estate investment company which focuses on high quality, strategically located city centre real estate • Concentrated ownership of premium grade real estate • High quality occupiers supported by world class client service • Dev
Slide 11: Business update
Business update 69% Investment portfolio weighting • The return to city centres is advancing to Auckland well with high levels of office utilisation, increased foot traffic and retail sales increasing week on week since March $3.3bn Size of portfolio • Premium portfolio remains resilient through the
Slide 12: Developments in progress
Developments in progress Note 1 Current commitments • Developments currently underway: • 40 & 44 Bowen Street, Wellington 23% Forecast blended ROC • One Queen Street, Auckland • 30 Waring Taylor, Wellington • Total NLA of 50,700m2 under development 6.3% Forecast blended YOC • 73% pre-committed to da
Slide 13: Development track record
Development track record Delivering growth Project City Completion % pre Leased Total Value on Return on leased at PC project cost completion cost (PC) • $1.5 billion of developments 12 Madden Street AKL 2016/17 70% 100% $91 m $107 m 18% • Yield on cost of 6.7% Bowen Campus • Generating 28% return o
Slide 14: Transaction overview
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Slide 15: Wellington market
Wellington market • Prime vacancy rates continue to remain below long term average (2.1%) 1% Prime vacancy (Source: Colliers REP Database) • Occupier market remains strong; • Growth in public sector workforce, • • Minimum NABERSNZ standards for crown agencies, Seismic awareness and demand for resili
Slide 16: Bowen House
Bowen House 1 Bowen Street • Unconditional agreement in place to acquire Bowen House, with settlement expected to occur in July 2021 • Bowen House is a landmark, 23- Key metrics level office building located on Purchase price $92 m the corner of Bowen Street & Lambton Quay, opposite the Incremental
Slide 17: Freyberg Building
Freyberg Building 20 Aitken Street • Conditional agreement in place to acquire Freyberg Building subject to completing due diligence • Freyberg Building is a 14-level office building located on the eastern fringe of the Government precinct, adjacent to the proposed new National Archives Key metrics
Slide 18: Transactions impact - Development
Transactions impact - Development • Committed development pipeline increased to $800 million in total value $800m 79% Total value Pre-let • Providing forecasted blended returns of: • 20.5% ROC • 6.1% YOC 20.5% 6.1% • Significantly de-risked with pre- Forecast blended Forecast blended leasing of 79%
Slide 19: Transactions impact - Portfolio
Transactions impact - Portfolio Pre Post Change transaction1 transactions2 Weighted average lease term 8.5 years 9.1 years +0.6 years Occupancy 98% 98% 0% % of office revenue from Government 28% 33% +5% Portfolio weighting to Auckland 69% 65% (4%) Total Assets $3.7bn $3.9bn +$0.2m Note 1 Assumes com
Slide 20: Outlook
Outlook
Slide 21: Portfolio earnings certainty
Portfolio earnings certainty Precinct’s well located buildings, high occupancy, quality client base, and long WALT gives 6% Under rented2 confidence in our earnings outlook • Portfolio benefits from under-renting 9.1 years • Long WALT and limited lease expiry Weighted average lease term1 • 33%1 of g
Slide 22: Business outlook
Business outlook • Portfolio benefitting from high quality occupiers 6.70 cps • Strong pipeline of internal and external opportunities 3.1% growth • By 2024 $2.5 billion of Precinct’s portfolio Forecast FY22 is expected to be premium grade, new dividend real estate¹ guidance • Forecast FY22 dividend
Slide 23: Proposed equity raise
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Slide 24: Equity raise overview
Equity raise overview Purpose • Targeting $250 million of equity via a Placement and Retail Offer • Proceeds will be used to acquire the two Wellington opportunities, fund the Bowen House re-development and reduce gearing providing additional funding capacity to assist with future development opport
Slide 25: Equity raise offer summary
Equity raise offer summary • Placement to eligible investors Offer components • Retail Offer open to all shareholders with a registered address in New Zealand under which each shareholder can apply for up to $50,000 of New Shares Targeting $250 million comprising: • $220 million underwritten Placeme
Slide 26: Equity raise timetable
Equity raise timetable Placement Date Trading halt commences and Placement bookbuild opens 18 June Trading halt lifted 21 June Settlement and allotment of Placement shares and commencement of trading of 24 June New Shares on NZX Retail Offer Record date (5.00pm NZ time) 17 June Expected release of t
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