Asset Plus Limited · NZX:APL

Asset Plus — FY2023 Earnings Presentation

28 slides from Asset Plus's earnings presentation, May 29, 2023

  1. Slide 1: Financial results

    Financial results For the year ended 31 March 2023 29 May 2023

  2. Slide 2: Overview

    35 GRAHAM STREET AUCKLAND OVERVIEW 1. Result summary 2. Key metrics 3. Significant activities 4. Financial performance 5. Funding update 6. Portfolio update 7. Outlook

  3. Slide 3: Result summary

    Result summary 6-8 MUNROE LANE 6-8 MUNROE LANE • Total loss for the year net of tax of $13.05m (FY22 profit of $2.93m). • Result impacted by $13.04m of revaluation and disposal losses and reduced rental income, due to divestments and lower occupancy (35 Graham Street). • AFFO1 loss of $0.28m ($4.22m

  4. Slide 4: Key metrics

    Key metrics Portfolio value Properties* Occupancy* WALE* Loan-to-value Net tangible Ratio* assets March 2023 $216.6m 3** 37.0% 1.2 years 31.5% 40.4 cps (reducing to $182m)* (reducing to 2)* (increasing to 42%)* (increasing to 6.5 years)* (reducing to 20%)* March 2022 $216.4m 5 58.0% 2.2 years 25.7%

  5. Slide 5: Significant activity during the year

    Significant activity during the year 6-8 MUNROE LANE Munroe Lane development effectively complete, with Auckland Council lease now commenced on 17 May 2023 Settlement of Eastgate and Kamo properties now completed Unconditional sale of 35 Graham Street with a deferred settlement Stoddard Road uncondi

  6. Slide 6: Financial performance

    0 ASSET PLUS+#+ —— MaNacen ey Centuria Financial performance

  7. Slide 7: Financial Performance

    Financial Performance Mar-23 Mar-22 Var • Net rental income reduced by $4.26 million. The primary driver was ($m) ($m) ($) the impact of 35 Graham Street now being fully vacant. Impact of $2.17 million. Gross Rental Revenue 6.38 11.93 (5.55) Direct Property Operating Expenses (2.91) (4.20) 1.29 • Th

  8. Slide 8: Net Rental Performance

    Net Rental Performance Mar-23 Mar-22 • 35 Graham Street was 99% vacant for the period – a small Var ($) ($m) ($m) amount of carpark income was received. Net rental reduced by Stoddard Road 2.62 2.42 0.20 $2.17 million. The prior year included full rental for three months then 50% income for the next

  9. Slide 9: Administration & Finance Expenses

    Administration & Finance Expenses Mar-23 Mar-22 • Management fees were slightly higher as the weighted average Var ($) portfolio value marginally increased due to the Munroe Lane ($m) ($m) development but was offset by the Eastgate settlement in August Management Fees 1.13 0.99 (0.14) 2022. Director

  10. Slide 10: Balance Sheet

    Balance Sheet Mar-23 Mar-22 Var • Investment and Development property comprises just Munroe Lane ($m) ($m) ($) ($118.6 million). The fair value can now be reliably measured and an unrealised development loss of $7 million has been recorded. Cash 4.9 4.4 0.5 • 35 Graham Street and Stoddard Road are b

  11. Slide 11: Funding update

    0 ASSET PLUS+#+ —— MaNacen ey Centuria Funding update

  12. Slide 12: Funding

    Funding Loan facilities as at 31 March 2023 • Extension of loan facilities to 31 March 2025 – previously 30 September 2023. Facility limit increased from $83.5 million to $85 million. Drawn – New 31 Margin Line Fee Total • Removal of ICR covenant. Removal of leasing milestones in respect Limits Marc

  13. Slide 13: Portfolio update

    0 ASSET PLUS+#+ —— MaNacen ey Centuria Portfolio update

  14. Slide 14: Munroe Lane, Albany

    Munroe Lane, Albany 6-8 MUNROE LANE • Effectively complete with Auckland Council lease commencing on 17 May 2023. • Practical Completion expected in mid June 2023 once final commissioning is completed, post Auckland Council’s fit-out. • Level 3 was initially handed over to Auckland Council for their

  15. Slide 15: Munroe Lane, Albany (continued)

    Munroe Lane, Albany (continued) 6-8 MUNROE LANE • The fair value as at 31 March represents the completed valuation based on a committed occupancy basis less costs to complete excluding lease incentives. • The as if complete valuation based on just the Auckland Council (committed) lease is $126 milli

  16. Slide 16: Munroe Lane - leasing update

    Munroe Lane - leasing update 6-8 MUNROE LANE • Heads of Agreement signed with reputable café operator for kiosk located in the heart of the ground floor lobby. • Leasing interest has increased as the development nears completion. • Scarcity of full floor plate occupiers in the market – may necessita

  17. Slide 17: Stoddard Road, Auckland

    Stoddard Road, Auckland 22 STODDARD ROAD, MT ROSKILL • Sale settled on 1 May 2023, post-balance date. This followed an open market sales campaign which commenced in February 2023. • WALE for the Centre was 2.9 years at balance date with occupancy remaining at 100%. • 5-year lease extension secured w

  18. Slide 18: Divestment of 35 Graham Street

    Divestment of 35 Graham Street 35 GRAHAM STREET, AUCKLAND | ARTIST’S IMPRESSION • Unconditionally sold, with a deferred settlement date of 1 December 2023 at the earliest. • Purchaser has a right to defer settlement for a further 12 months, subject to additional consideration of $3.0 million and a f

  19. Slide 19: Other recent divestments

    Other recent divestments Eastgate Kamo • Sale price of $43.45 million • Sale price of $2.7 million • Settled on 29 August 2022 after title issue was rectified by • Settled on 30 November 2022 management • Funds from the divestment applied to the cash lockbox of $5 million • $40 million debt repaymen

  20. Slide 20: Outlook

    0 ASSET PLUS+#+ —— MaNacen ey Centuria Outlook

  21. Slide 21: Outlook

    Outlook • The dividend remains suspended which is subject to quarterly review. It is likely to remain suspended until the future direction of the company is confirmed. • The company is forecast to still be in an operating loss position post-Munroe Lane completion, absent further leasing, up until th

  22. Slide 22: Appendices

    0 ASSET PLUS+#+ —— MaNacen ey Centuria Appendices

  23. Slide 23: Appendix – AFFO reconciliation

    Appendix 1 – AFFO reconciliation March 23 ($m) March 22 ($m) Comprehensive Income (Loss) Net of Tax (13.05) 2.93 Add back Fair value movement on Investment Property (including loss on disposal) 13.04 1.01 Non-FFO Deferred Tax Expenses (0.41) 0.21 Net Operating Income (Loss) After Tax (0.42) 4.15 Amo

  24. Slide 24: Appendix – Adjusted Funds From Operations (AFFO)

    Appendix 2 – Adjusted Funds From Operations (AFFO) 4.22 (2.17) 0.53 0.20 (0.11) (0.28) (2.4) (0.10) (0.45) FY22 35 Graham St Eastgate Stoddard Higher net Higher Corporate Lower FY23 vacancy divestment Road finance costs mgmt fees costs tax expense* The above graph is represented in $m. * Due to tax

  25. Slide 25: Appendix – Portfolio summary

    Appendix 3 – Portfolio summary Properties Held for Sale Stoddard Road, Auckland (now settled post Munroe Lane, Albany 35 Graham Street, Auckland balance date) Valuation/ $118.6² $61.7¹ $36.3 Carrying Value ($m) (Mar-22: $67.5) (Mar-22: $59.0) (Mar-22: $43.5) 10.0 year WALE from PC (Auckland Council

  26. Slide 26: Appendix – Portfolio movements

    Appendix 4 – Portfolio movements Transfer to Capex & Other Fair Value Fair Value March Opening balance properties held for Sale of Property WIP movements movement 2023 incl. WIP ($m) sale ($m) ($m) ($m) ($m) ($m) ($m) Properties held for sale Eastgate 43.5 - - (0.1) (43.4) - - Kamo – bare land 2.9 -

  27. Slide 27: 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

  28. Slide 28: Where to find us

    Where to find us Auckland Office Bayleys House Level 2, 30 Gaunt Street Auckland 1010 New Zealand PO Box 37953 Parnell Auckland 1151 Telephone +64 (9) 300 6161 Facsimile +64 (9) 300 616

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