Investore Property Ltd. · NZX:IPL
Investore Property — Debt Investor Presentation (August 2020)
31 slides from Investore Property's debt investor presentation, Aug 17, 2020
Slide 1: Investore Property Limited Retail Bond Presentation
Investore Property Limited Retail Bond Presentation 17 August 2020 Arranger & Joint Joint Lead Lead Manager Managers
Slide 2: Disclaimer and Important Notice
Disclaimer and Important Notice This presentation has been prepared by Investore Property Limited (Investore) in relation to the offer of senior secured representation or warranty, either express or implied, as to the accuracy, completeness or reliability of the information fixed rate bonds by Inves
Slide 3: Contents
Bunnings Contents Te Rapa, Hamilton Overview of the Offer 04 Business Summary 05 COVID-19 Update 09 Portfolio Highlights 10 Sustainability 16 Financial Overview 17 Bond Offer 21 Investment Highlights 26 Investore Property Limited | Retail Bond Presentation 3
Slide 4: Overview of the Offer
Overview of the Offer • Investore is offering up to $75m (with up to an additional $50m in oversubscriptions able to be accepted at Investore’s discretion) of senior secured fixed rate 7 year Bonds • The net proceeds of the Offer will be used to repay a portion of Investore’s existing bank debt, pro
Slide 5: Business Summary
Business Summary Bay Central Shopping Centre Tauranga Investore Property Limited | Retail Bond Presentation 5
Slide 6: A Strong, Resilient Portfolio
A Strong, Resilient Portfolio $895.2m 87% 0.3% Portfolio value1 Gross rental from Average lifecycle costs across 43 properties anchors by asset value per annum 10.4 years 71% 99.7% WALT of Contract Rental2 Portfolio occupancy Dependable by Contract Rental2 expires in FY30 or beyond by area income st
Slide 7: Large Format Retail
Large Format Retail Investore Property Limited’s strategy is to invest in quality, large format retail (LFR) properties throughout New Zealand, and actively manage investors’ capital, to maximise distributions and total returns over the medium to long term Long lease terms High occupancy Nationally
Slide 8: Our Strategic Principles
Our Strategic Principles Our strategy is based on four 1. Active Portfolio 2. Targeted Growth principles – active portfolio Management management, targeted growth, continued optimisation of the Focus on owning well-located Considered acquisitions and properties with long lease terms and developments
Slide 9: Business Impacts from COVID-19
Business Impacts from COVID-19 Investore’s portfolio comprises a high proportion of businesses that continued to trade during the April 2020 Government lockdown (‘essential businesses’) and a limited number of leases permitting tenants to suspend or abate rental payments as a result of Government Al
Slide 10: Portfolio Highlights
Portfolio Highlights Countdown Greenlane, Auckland Investore Property Limited | Retail Bond Presentation 10
Slide 11: Targeted growth
Targeted growth • Investore continues to explore acquisition and development opportunities to deliver on its strategy of targeted growth, focussed on opportunities that enhance its existing portfolio • Investore is currently considering portfolio opportunities, including an acquisition and other gro
Slide 12: Portfolio Summary
Portfolio Summary Portfolio Metrics Long portfolio WALT of 10.4 years As at 31 Mar 2020 and 71% of Contract Rental2 expiring pro forma1 in FY30 or beyond1 Number of properties 43 Number of tenants 130 Net lettable area (NLA) (sqm) 246,176 Net Contract Rental2 ($m) 56.2 WALT (years) 10.4 Lease Expiry
Slide 13: Anchor tenants underpin income
Anchor tenants underpin income Investore’s resilient portfolio comprises a high proportion of anchor tenants (87%1 by Contract Rental2) and is geographically diverse, reflective of the population spread across NZ Geographic diversification by Contract Rental1,2 Anchor tenant classification by Contra
Slide 14: Diversified portfolio locations
Diversified portfolio locations Auckland (36%) $895m 12 properties 50 tenants 73,938 sqm NLA $331m asset value Portfolio Value1 Waikato (10%) 5 properties 11 tenants 28,458 sqm NLA 82% $80m asset value North Island Other North Is. 82% (22%) North Island 8 properties Wellington 41 tenants (14%) 70,59
Slide 15: Majority of tenants represent everyday needs
Majority of tenants represent everyday needs Around 71% of Investore’s portfolio1 is categorised as ‘everyday needs’, drawing customers to the properties on a regular basis and providing a strong tenant proposition Countdown New World Pak’nSave Animates General Everyday needs Unichem Pharmacy Mercha
Slide 16: Sustainability
Countdown Rototuna, Hamilton Sustainability Investore has developed a sustainability strategic plan which addresses each of its sustainability objectives under three key pillars of people, planet/places and prosperity Sustainability initiatives undertaken by Investore include: New energy efficient
Slide 17: Financial Overview
Financial Overview Countdown Warkworth, Auckland Investore Property Limited | Retail Bond Presentation 17
Slide 18: Financial Highlights
Financial Highlights For the year ended 31 March Pak’n Save New 2020 Plymouth • Net rental income of $48.1m (FY19: $47.4m) • Corporate expenses of $7.5m (FY19: $6.0m) • Profit before other income and tax of $26.7m (FY19: $27.0m) • Profit after income tax of $28.6m (FY19: $38.6m) due to lower net rev
Slide 19: Proactive Capital Management
Proactive Capital Management As at Fixed rate interest profile 31 Mar 2020 As at 31 March 2020 Debt facilities pro forma1 Banking facility limit (ANZ, BNZ, CBA, CCB, Westpac), $420m $250 plus IPL010 bond $225m 3.50% Debt facilities drawn $272m $200 $195m Weighted maturity of debt facilities 3.3 year
Slide 20: Offer Outcomes
Offer Outcomes As at As at 31 Mar 2020 Net proceeds of the Offer will be used to repay and 31 Mar 2020 pro forma, plus Debt facilities pro forma1 new Bonds2 cancel a portion of Investore’s existing bank debt Banking facility limit Further diversification of funding sources – 50% of $320m $221m (AN
Slide 21: Bond Offer
Bond Offer Mitre 10 MEGA Botany, Auckland Investore Property Limited | Retail Bond Presentation 21
Slide 22: Security
Security • The Bonds will be secured by first ranking mortgages granted by Investore over its properties and by security interests over Investore’s other assets under a General Security Deed (subject to limited exceptions) • As at 31 March 20201, assuming the Bonds had been issued at that time, liab
Slide 23: Covenants and Default
Covenants and Default • The Loan to Value Ratio under the Trust Deed for the Bonds limits the ability of Investore to borrow money which is secured by the mortgages and the General Security Deed to no more than 65% of the total value of the mortgaged properties (including, in respect of any developm
Slide 24: Key Terms of the Offer
Key Terms of the Offer Summary Detail Issuer Investore Property Limited Description of the Bonds Senior secured, fixed rate bonds 7 year bonds The Bonds are secured by first ranking mortgages granted by Investore over the mortgaged properties and by security interests over Investore’s other assets u
Slide 25: Key Dates of the Offer
Key Dates of the Offer Key event Date Pre-offer announcement Monday, 10 August 2020 Offer opens Monday, 17 August 2020 Offer closes 11:00am, Friday, 21 August 2020 Interest Rate set Friday, 21 August 2020 Issue Date Monday, 31 August 2020 Expected date of initial quotation on the NZX Debt Market Tue
Slide 26: Investment Highlights
Investment Highlights NZX listed with focus on large format retail property Geographically diversified portfolio totalling $895.2m1 Long term leases – WALT of 10.4 years1 Dependable income streams Nationally recognised quality tenant brands High occupancy rate - 99.7%1 Strong management and corporat
Slide 27: Q&A
Q&A
Slide 28: Appendices
Appendices
Slide 29: Board of Directors
Board of Directors Mike Allen Gráinne Troute Adrian Walker Chair of the Board Chair of the Audit and Risk Independent, Non- Independent, Non-Executive Committee Executive Director Director Independent, Non-Executive Director Mike has considerable governance experience and Gráinne has over 30 years’
Slide 30: Management Team
Management Team Philip Littlewood Jennifer Whooley Fabio Pagano Steve Penney Chief Executive Chief Financial Fund Manager General Manager Officer Officer Investore Investment • Over 20+ years experience in property • 25+ years experience in the • 15+ years experience in retail and • 15+ years experi
Slide 31: 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
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