Slide 1: Annual Result Update
Annual Result Update For the year ended 31 March 2019 29 May 2019 1
Slide 2: Strategic Update
___ Strategic Update ➢ The last 12 months has been a period of ongoing transition for Asset Plus, including the change to an external manager, Augusta Funds Management, but also the focus on the future value-add strategy and potential “ The Board is committed to growing the “ portfolio in a discipli
Slide 3: Key points for the year ended 31 March 2019
Key points for the year ended 31 March 2019 Adjusted funds Net profit after tax of from operations (AFFO*) of Multiple number $3.80m, an increase of $4.74m were 23% lower than Sale of AA Centre, with of leasing initiatives 23% against the prior year prior year. This represents a settlement occurring
Slide 4: Financial Performance
Financial Performance 4
Slide 5: Financial Performance
___ Financial Performance Year ended Year ended Mar-19 Mar-18 Var Var $m $m $ % Gross Income 13.35 16.70 (3.35) (20%) Net profit after tax of $3.80m, a 23% increase on the prior year Direct Property Operating Expenses (4.20) (5.00) 0.80 16% ➢ AFFO* of $4.74m was down 23% from $6.15m in 2018. The AFF
Slide 6: Financial Position
___ Financial Position ➢ Net tangible asset (NTA) backing is 69.4 cents per Year ended Year ended share which has reduced from 70.6 cents per share as Mar-19 Mar-18 Var Var $m $m $m % at 31 March 2018. Cash 0.8 0.5 0.3 56% Investment Properties 94.1 124.6 (30.5) (25%) ➢ The current Group gearing is
Slide 7: Net Rental
___ Net Rental Net rental income is $2.55m / 22% lower primarily due to: Year ended Year ended Mar-19 Mar-18 Var Var ➢ Divestment of the AA Centre in Auckland and 17 Print Place in $m $m $m % Christchurch reduced net rental by $1.60m and $0.79m respectively. Eastgate Shopping Centre 3.70 3.70 (0.00)
Slide 8: Administration Expenses
___ Administration Expenses Year ended Year ended ➢ Administration expenses of $1.77m are $1.2m / Mar-19 Mar-18 Var Var $m $m $m % 40% lower, driven by lower management costs Management Fees 0.72 0.02 (0.70) (100%) under the externalised management contract with Directors Fees 0.30 0.28 (0.02) (7%)
Slide 9: Funding
___ Funding ➢ Facility limit reduced to $20m during the year and $9.5m Bank Facility remains undrawn at balance date. Facility Limit ($m) 20.0 ➢ The current loan term expires in July 2020. Drawn Debt ($m) 10.5 ➢ The limit will increase to $75m to facilitate the 35 Graham St Margin (%) 0.93% acquisit
Slide 10: AA Centre divestment
___ AA Centre divestment ➢ $34m of debt repaid post settlement on 12 July 2019 reducing gearing to 8.5%. ➢ No building depreciation recovery on the sale leading to a full reversal of the deferred tax liability boosting the NTA by $1.1m. ➢ A tax loss on disposal of $2.6m in respect to the fit out mat
Slide 11: Portfolio Summary
Portfolio Summary 11
Slide 12: Portfolio Summary as at 31 March 2019
___ Portfolio Summary as at 31 March 2019 Fair Value Occupancy WALT Passing ($m) (%) (Years) Rent Yield (%) Eastgate 54.5 93 5.1 6.7% Roskill Centre 39.5 100 4.0 6.5% – Stoddard Rd > Heinz Watties 29.1 100 7.9 7.6% NDC – held for sale* TOTAL 123.1 96.7 5.5 *$0.22m of transaction costs recorded as He
Slide 13: Eastgate Shopping Centre
___ Eastgate Shopping Centre ➢ Management have been very active with this property, with a number of leases renewed during the past 12 months. 2019 2018 ➢ Countdown has exercised a 4 year right of renewal (RoR). A further 4 year RoR has been agreed subject to payment of the Valuation ($m) 54.5 58.0
Slide 14: Heinz Watties National Distribution Centre
___ Heinz Watties National Distribution Centre ➢ This asset is held for sale at balance date 2019 2018 ➢ The previously proposed redevelopment including a warehouse extension and concurrent lease extension is Valuation ($m) 29.1 27.3 no longer proceeding in the near term. Net Contract Income ($m) 2.
Slide 15: Roskill Centre, Stoddard Road
___ Roskill Centre, Stoddard Road ➢ A total of 7 lease renewals were completed during the year. The total rent from the renewals equate to $0.57m, or 21.5% of the total rental income for the centre, taking the centre WALT from 2019 2018 3.76 years in March last year to 4.02 years currently. Valuatio
Slide 16: Lease Expiry Summary
___ Lease Expiry Summary ➢ The lease expiries noted in the graph below in the year ended 31 March 2020 relate to 25 separate tenancies. Lease expiry by rental income ($000) 33% 3,483 > 16% 14% 1,704 1,451 10% 8% 1,044 5% 4% 4% 3% 840 545 478 2% 1% 402 178 193 Vacant Mar-20 Mar-21 Mar-22 Mar-23 Mar-2
Slide 17: Outlook
Outlook 17
Slide 18: 35 Graham Street
___ 35 Graham Street Shareholder vote on 17 June 2019 ➢ $58m acquisition. Transaction fully debt funded taking forecast gearing to 38%. “ ➢ Settlement is set for 28 June 2019. The potential acquisition of 35 Graham ➢ Contracted net rental of $3.975m. >“ Street fits with the value-add strategy ➢ WALT
Slide 19: Outlook
___ Outlook The future strategic operating priorities include: ➢ 35 Graham St acquisition and progressing the repositioning strategy. ➢ Progression of the value-add opportunities within the existing portfolio. ➢ Exit of non-core assets as appropriate. > “ The Board remains patient and disciplined in
Slide 20: Appendix
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Slide 21: Appendix 1: AFFO Reconciliation
___ Year ended Year ended Mar-19 Mar-18 Appendix 1 : AFFO Reconciliation $m $m Total Comprehensive Income Net of 3.80 3.09 Tax Add Back Loss/ (Gain) From Sales of Investment 0.92 2.97 Property Fair value (gain) / loss on investment 1.77 2.95 property Depreciation on Owner Occupied PP&E - 0.36 FV (Ga
Slide 22: Important Notice
Important Notice This presentation contains not only a review of operations, but may also contain some forward looking statements (including forecasts and projections) about Asset Plus Limited (APL) and the environment in which APL operates. Because these statements are forward looking, APL’s actual