National Storage Reit · ASX:NSR
National Storage Reit — Bank of America Merrill Lynch 9th Australian Real Estate Conference (October 2018)
23 slides from National Storage Reit's conference presentation, Oct 25, 2018
Slide 1: Bank of America Merrill Lynch 9th Australian Real Estate Conference
BANK OF AMERICA MERRILL LYNCH 9 TH A U S T R A L I A N R E A L E S T A T E C O N F E R E N C E NATIONAL STORAGE REIT OCTOBER 2018
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by National Storage REIT (“NSR”) comprising National Storage Holdings Forward-looking statements Limited (ACN 166 572 845) and National Storage Financial Services Limited (ACN 600 787 246 and AFSL 475 This presentation may contain certain "forward-looki
Slide 3: Australasia's largest self-storage owner-operator
Australasia’s largest self-storage owner-operator, focused on driving organic growth across 144 storage centres and executing a strong pipeline of acquisition and development opportunities. 3
Slide 4: Developing multiple revenue streams to maximise returns
Developing multiple revenue streams to maximise returns Focus on organic growth, platform Asset Management efficiencies and scalability Executing high quality acquisitions Acquisitions across Australia and New Zealand Portfolio & Development Expansion and development Management projects in key marke
Slide 5: FY18 Highlights
FY18 HIGHLIGHTS UNDERLYING EPS 9.6 CENTS | A-IFRS PROFIT $145.8 MILLION UNDERLYING AUSTRALIAN PORTFOLIO ASSETS UNDER TOTAL RETURN3 EARNINGS1 OCCUPANCY MANAGEMENT $51.4m 80.4% 19.9% $1.4b (up 12.5%) (up 3.0%) (up 23%) UNDERLYING SAME CENTRE ACQUISITIONS NET TANGIBLE EPS1 REVPAM2 COMPLETED ASSETS 9.6
Slide 6: Capital Management
CAPITAL MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2018 Capital Management Jun-18 Jun-17 MAJOR REFINANCE COMPLETED JUNE 2018 $175 MILLION EQUITY RAISING AUGUST 2018 Total debt facilities $715m $542m Total debt drawn $600m $482m • June 2018 gearing 38% • Target range 25% - 40% (Covenant 55%) Remaining deb
Slide 7: Key Operational Metrics
KEY OPERATIONAL METRICS PROACTIVE MANAGEMENT OF RATE AND OCCUPANCY CONTINUES TO DELIVER STRONG REVPAM GROWTH REVPAM REVPAM June 16 Centres (Inc Southern Cross) June 16 Centres (Inc Southern Cross) 225 225 220 220 220 216 215 215 212 210 210 207 205 205 202 200 200 195 195 190 Feb-17 Feb-18 Jun-16 Ju
Slide 8: Key Operational Metrics
KEY OPERATIONAL METRICS ACTIVE REVENUE MANAGEMENT AND ANALYTICS CONTINUE TO DELIVER OCCUPANCY GROWTH • 80.8% June 16 Portfolio Occupancy (FY17: 77.5%), with >60% of centres trading at or above 80% occupancy • Occupancy growth of 25,000 sqm during FY18 • Strong growth experienced across SA (up 6%), W
Slide 9: Acquisition Highlights
ACQUISITION HIGHLIGHTS CONTINUED ACQUISITION GROWTH FY18 ACQUISITIONS • $155 million of assets settled in FY18 Region NLA (Sqm) Purchase Price • 87,500m2 additional NLA New South Wales Morisset 7,300 $11.9m North Wyong • NSR is continuing to successfully execute its New Zealand Ngauranga 7,900 NZ$21
Slide 10: FY19 Completed Acquisitions
FY19 COMPLETED ACQUISITIONS ACQUISITION PIPELINE REMAINS VERY STRONG • NSR has settled 9 assets for a total of $75 million since 1 July 2018 • In addition, NSR has over $100 million in acquisition opportunities currently under active consideration, with the majority expected to settle within six mon
Slide 11: New Zealand
NEW ZEALAND PORTFOLIO EXPANSION CONTINUES • 14 owned centres across New Zealand with 78,100 sqm of NLA Occupancy • Multiple centres at or approaching stabilised occupancy • Acquisitions: 90.0% − Ngauranga - April 2018 − Te Rapa – May 2018 85.0% − Buckland – Sept 2018 − Continue to pursue acquisition
Slide 12: Sustainability
SUSTAINABILITY REDUCING OUR CARBON FOOTPRINT WHILE GENERATING SUPERIOR RETURNS ▪ The comprehensive program is designed to deliver long term benefits both environmentally and from a cost saving perspective ▪ Phase One of the program is complete and expected to save 2,000 MWh (with a reduction of 1,40
Slide 13: Technology and Innovation
TECHNOLOGY AND INNOVATION LEVERAGING TECHNOLOGY, INNOVATION AND DIGITAL TRANSFORMATION TO STRENGTHEN OUR PLATFORM ▪ Enhanced Revenue Management − Continuous monitoring of competitor pricing − Automated pricing algorithm to maximise yield based on unit specific features and benefits ▪ Paperless Custo
Slide 14: FY19 Guidance and Outlook
FY19 GUIDANCE AND OUTLOOK FY19 DISTRIBUTION GUIDANCE OF 9.6 – 9.9 CENTS PER STAPLED SECURITY (including the impact of the equity raising) UNDERLYING EPS GROWTH 1 PER STAPLED SECURITY UNDERLYING EARNINGS GROWTH 9.6 CENTS 9.9 CENTS $62.5 MILLION $64.5 MILLION 0% 3% 22% 25% ▪ FY19 EPS range of 9.6 – 9.
Slide 15: Overview of Strategic Initiatives
OVERVIEW OF STRATEGIC INITIATIVES CONTINUING TO IDENTIFY VALUE ADD OPPORTUNITIES NSR is pleased to announce several strategic initiatives designed to optimise the value of our portfolio, drive earnings accretion, and find additional cost- effective sources of capital to continue our successful conso
Slide 16: Appendices
APPENDICES HANDLED WITH CARE
Slide 17: Agreement with Stockland
1 AGREEMENT WITH STOCKLAND UNLOCKING VALUE ▪ NSR has entered into an Agreement with leading Australian property group, Stockland, to review and identify mixed use and storage opportunities across both NSR’s and Stockland’s portfolios respectively ▪ Planning changes and evolving local market conditio
Slide 18: Capital Partnership in New Zealand
2 CAPITAL PARTNERSHIP IN NEW ZEALAND ACCELERATING PORTFOLIO EXPANSION IN A CAPITAL EFFICIENT MANNER ▪ NSR intends to develop a capital partnership for NSR’s existing portfolio across New Zealand ▪ Strong market fundamentals and operating metrics are continuing to drive strong investor demand for sel
Slide 19: Expansion and Development Pipeline
3 EXPANSION AND DEVELOPMENT PIPELINE FOCUS ON NSR’S EXPANSION AND DEVELOPMENT PIPELINE TO MAXIMISE NEW AND EXISTING CENTRE OPPORTUNITIES • Expansion of five assets within NSR’s existing portfolio to commence in FY19 • Estimated total capex of $15 million to $20 million and stabilised yield on cost o
Slide 20: Development Example 1: Gold Coast
DEVELOPMENT EXAMPLE 1 GOLD COAST Concept Summary Investigating retrofit of existing building structure in conjunction with newly constructed facility with potential to stage delivery Site Area 21,881m² Current Use Retail, Retail/Office & Carpark Design Status Concept Design Indicative Yield 10,000m²
Slide 21: Development Example 2: Scottsdale Drive, Robina
DEVELOPMENT EXAMPLE 2 177 & 243 SCOTTSDALE DRIVE, ROBINA Concept Summary To increase capacity and product diversity of existing facility to higher and better use Site Area 10,061m² & 3,111m² Current Use Existing Building contains 952 units with 10,159m² –the balance parcel is currently underutilised
Slide 22: Development Example 3: Bundall Road, Bundall
DEVELOPMENT EXAMPLE 3 110 BUNDALL ROAD, BUNDALL Concept Summary Combined existing large format retail and new storage centre Site Area 3,775m² Proposed Use Storage Centre with 606 units GFA 10,000m² Carparks 12 Project Status Approved and Under Construction Anticipated Completion February 2019
Slide 23: End
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