Investore Property Ltd. · NZX:IPL
Investore Property — FY2020 Earnings Presentation
29 slides from Investore Property's earnings presentation, Jun 3, 2020
Slide 1: Annual Results Presentation
Annual Results Presentation For the year ended 31 March 2020 3 June 2020
Slide 2: Contents
Bunnings Te Rapa, Contents Hamilton Highlights 03 Strategy overview 04 COVID-19 update 07 Portfolio 08 Financial performance 16 Capital management 20 Year ahead 24 Investore Property Limited | FY20 Annual Results Presentation 2
Slide 3: A strong, resilient portfolio
A strong, resilient portfolio Profit before other income/ 7.60cps Distributable profit1 after (expense) and income tax current tax Financial $26.7m $21.1m Cash Dividend for FY20 down $0.2m on FY19 ($27.0m) up $0.2m on FY19 ($20.9m) highlights $186m $182.7m 30.4% Financing of Total capital raised Loa
Slide 4: Our strategic principles
Our strategic principles Investore Property Limited’s strategy 1. Active Portfolio 2. Targeted Growth is to invest in quality, large format Management retail properties throughout New Focus on owning well-located Considered acquisitions and Zealand, and actively manage properties with long lease ter
Slide 5: Delivering on our strategy
Delivering on our strategy • Weighted average lease term (WALT) 10.4 years1 Portfolio • 99.7% occupancy by area1 Management • 40 rent reviews completed over 125,000 sqm, resulting in a 4.0% increase to previous rentals • 71% of leases1 by Contract Rental2 expiring in 2030 or beyond • Successful acqu
Slide 6: Strong performance since listing
Strong performance since listing Investore Property Limited (Investore) is New NTA per share (3.5% CAGR1) Zealand’s only listed company with an investment strategy focused on large format retail property $1.73 $1.70 $1.69 $1.64 Since listing in July 2016, Investore has undertaken a range of initiati
Slide 7: Update on business impacts from COVID-19
Update on business impacts from COVID-19 Investore’s portfolio comprises a high proportion of ‘essential businesses’ that continued to trade during the Government lockdown and a limited number of leases permitting tenants to suspend or abate rental payments Trading update • Investore has worked with
Slide 8: Portfolio highlights
Portfolio highlights Countdown Greenlane, Auckland Investore Property Limited | FY20 Annual Results Presentation 8
Slide 9: Portfolio overview
Portfolio overview Key activities Portfolio Metrics Adjusted As at As at ✓ 40 rent reviews completed over 125,000 sqm 31 Mar 31 Mar 31 Mar resulting in a 4.0% increase to previous rentals 20202 2020 20193 ✓ 99% of the rent reviews completed were Number of properties 43 40 39 structured reviews – CPI
Slide 10: Targeted growth
Targeted growth Investore has built a track record of considered acquisitions, disposals and $19.3m developments which deliver growth, while Sold Countdown continuing to enhance the portfolio’s Dunedin South Settled 1 April 2019 diversification Purchased ✓ Successful sale of Countdown Dunedin South
Slide 11: 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 N Save Animates Everyday needs Unichem Pharmacy Food / Bevera
Slide 12: Diversified portfolio locations
Diversified portfolio locations Auckland (36%2) $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%) 70,5
Slide 13: Anchor tenants underpin income
Anchor tenants underpin income Investore’s resilient portfolio comprises a high proportion of anchor tenants (87% by Contract Rental1) and is geographically diverse, reflective of the population spread across NZ Geographic diversification by Contract Rental2 Anchor tenant classification by Contract
Slide 14: Long dated lease expiry profile
Long dated lease expiry profile Lease Expiry Profile3 by Contract Rental1 Long portfolio WALT of 10.4 years and As at 31 March 2020 71% of Contract Rental1 expiring in 2030 WALT 10.4 or beyond2 years 29.4% FY21 • 4.3% of Contract Rental expiring, with major expiries: – The Warehouse, 91 Johnsonville
Slide 15: Progressing our sustainability
Progressing our sustainability In the past year Investore has built on its sustainability materiality matrix completed in FY19 through the development of a Sustainability Strategic Plan, based on three key pillars - people, planet/places and prosperity FY20 Achievements People Planet / Places Prospe
Slide 16: Financial performance
Financial performance Countdown Warkworth, Auckland Investore Property Limited | FY20 Annual Results Presentation 16
Slide 17: Financial performance
Financial performance Change 2020 2019 Actual Actual $m $m $m % Net rental income 48.1 47.4 +0.7 +1.4 Corporate expenses (7.5) (6.0) (1.4) (23.5) Profit before net finance expense, other income/(expense) and income tax 40.6 41.4 (0.8) (1.9) Net finance expense (13.9) (14.4) +0.5 +3.6 Profit before o
Slide 18: Distributable profit
1 Distributable profit Change 2020 2019 Actual Actual $m $m $m % Profit before income tax 34.4 44.1 (9.7) (21.9) Non-cash adjustments: - Net change in fair value of investment properties (7.7) (17.2) +9.5 +55.2 - Spreading of fixed rental increases (1.1) (1.3) +0.2 16.9 - Capitalised lease incentive
Slide 19: Financial summary
Financial summary Pro-forma1 As at As at As at 2020 31 Mar 31 Mar 31 Mar v 2019 2020 2020 2019 Change Investment Property value ($m) 895.22 761.43 761.2 +0.2 Drawn debt ($m) 272.2 238.4 318.5 (80.1) Loan to value ratio % 30.4 31.3 41.8 (10.8) Equity ($m) 622.5 526.7 443.2 +83.5 Shares on issue (mill
Slide 20: Capital management
Capital management Mitre 10 MEGA Botany, Auckland Investore Property Limited | FY20 Annual Results Presentation 20
Slide 21: Proactive capital management
Proactive capital management Pro-forma1 As at As at Debt transactions 31 Mar 31 Mar 31 Mar Debt facilities 2020 2020 2019 • $35m bank facility refinanced September 2019 Banking facility limit • Post balance date, a new 5 year $50m facility secured (ANZ, BNZ, CBA, CCB, Westpac), $420m $370m $370m plu
Slide 22: Improved capital profile
Improved capital profile Following the new $50m bank facility put in place post balance date, total debt facilities are $420m with $272m drawn1, leaving $148m undrawn and available to fund future growth Funding flexibility for growth Debt maturity profile As at 31 March 2020 • Following the capital
Slide 23: Hedging and cost of debt
Hedging and cost of debt As at As at Hedging Update 31 Mar 31 Mar Cost of debt 2020 2019 Investore had $225m of hedging in place (net of fixed-to-floating swaps), including the fixed bond, representing 94% of debt drawn at Weighted average cost of debt balance date (incl. current interest rate 4.63%
Slide 24: Our year ahead
Our year ahead Pak’n Save New Plymouth Investore Property Limited | FY20 Annual Results Presentation 24
Slide 25: Investore's year ahead
Investore’s year ahead Countdown Rototuna, • Targeted growth to enhance the Hamilton portfolio and maximise returns to investors over the medium to long term • Monitoring the impact of COVID-19, seeking to minimise the impact to Investore’s business, while also assisting tenants to maintain profitab
Slide 26: Appendices
Appendices Bay Central Shopping Centre Tauranga Investore Property Limited | FY20 Annual Results Presentation 26
Slide 27: Appendix 1
Appendix 1 Profit before other income/(expense) and income tax $1.2m $27.0m $1.1m $26.7m $0.2m ($0.2m) ($1.1m) ($0.3m) ($1.2m) 31-Mar-19 Net rental Net rental increase Net rental increase IFRS adjustments Lower net finance Higher Higher 31-Mar-20 reduction from from acquisitions from existing expens
Slide 28: Appendix 2
Appendix 2 Net Tangible Assets1 $0.13 ($0.02) $1.73 $1.70 ($0.08) $1.69 ($0.02) ($0.02) As at Profit before tax Income tax Dividends paid As at 31-Mar-20 Settlement of SPL Capital raise Pro forma 31-Mar-20 expense acquisitions FY21 31-Mar-20 Investment Properties (excl. lease liabilities) $140.8m $8
Slide 29: Thank you
Thank you Important Notice: The information in this presentation is an overview and does not contain all information necessary to make an investment decision. It is intended to constitute a summary of certain information relating to the performance of Investore for the year ended 31 March 2020. Plea