Investore Property Ltd. · NZX:IPL
Investore Property — FY2021 Earnings Presentation
28 slides from Investore Property's earnings presentation, May 18, 2021
Slide 1: Annual Results Presentation
Annual Results Presentation For the year ended 31 March 2021 18 May 2021
Slide 2: Contents
Contents Highlights 03 Portfolio metrics 04 Delivering on our strategy 06 Update on COVID-19 07 Portfolio 08 Financial performance 16 Capital management 20 Looking ahead 24 2
Slide 3: Highlights
Highlights Key highlights Financial highlights Capital management $37.3m Profit after income tax $105m acquisition of Countdown $161.3m Equity capital raised Petone1 announced up $132.6m from FY20 during April and May 2020 Distributable profit2 $10.5m after current tax $125m $29.1m acquisition of Wa
Slide 4: Portfolio metrics
Portfolio metrics $1.038bn Portfolio value1, net valuation gain of 15.5% over 12 months from 31 March 20202 5.23% Average portfolio capitalisation rate 9.8 years WALT 99.1% Portfolio occupancy (by area) 1. As at 31 March 2021. Portfolio value includes 35 MacLaggan Street, Dunedin, which is classifie
Slide 5: Our strategy
Our strategy Maximising distributions and total shareholder returns over the medium to long term by investing in quality, large format retail properties throughout New Zealand Targeted Growth Active Portfolio Optimisation of the Proactive Capital Management Portfolio Management Considered acquisitio
Slide 6: Delivering on our strategy
Delivering on our strategy • Portfolio valuation1 of $1.038bn, representing a $139.3m or 15.5% net revaluation gain 2 since 31 March 2020 • Post-balance date Investore has entered into an unconditional agreement to acquire a Countdown-anchored property at Petone, Wellington, for $37.3m, with settlem
Slide 7: Update on COVID-19
Update on COVID-19 v Countdown, Rotorua Investore’s portfolio continues to demonstrate resilience given the high proportion of tenants that are essential businesses • Investore has worked with its tenants to support them through the impact of COVID-19 throughout the year • Investore’s gross rent rec
Slide 8: Portfolio
Portfolio Countdown, Papakura Investore Property Limited | FY21 Annual Results Presentation 8
Slide 9: Targeted growth – Countdown Petone acquisition
Targeted growth – Countdown Petone acquisition Investore is delivering on its strategy of targeted growth with the announcement post balance date of entry into an unconditional agreement to acquire Countdown Petone for $37.3m Countdown Petone, 45 - 49 Jackson Street, Petone, Wellington Key Tenants C
Slide 10: Targeted growth – Waimak Junction land
Targeted growth – Waimak Junction land Waimak Junction Concept Plan Investore has a conditional agreement to acquire 3.5ha of land at Waimak Junction, Kaiapoi, North Canterbury, for $10.5m Investore has reached agreement in principle to construct a Countdown on part of the site, adjacent to an exist
Slide 11: Active portfolio management
Active portfolio management Key portfolio activities Portfolio metrics ✓ Portfolio value1 increased to $1,037.9m, representing a net As at Adjusted3 As at valuation gain of $139.3m or 15.5%2 31 Mar 21 31 Mar 20 31 Mar 20 ✓ 56 rent reviews completed over 77,500 sqm, resulting in a Number of propertie
Slide 12: Majority of tenants represent everyday needs
Majority of tenants represent everyday needs Investore’s portfolio continues to have a high proportion (around 72% by Contract Rental) of tenants that represent ‘everyday needs’, providing regular, repeat visitation to properties, and enabling Investore to benefit from the market conditions created
Slide 13: Anchor tenants underpin income
Anchor tenants underpin income Anchor tenants continue to represent a high proportion (88%) of Investore’s total Contract Rental, resulting in a resilient portfolio in difficult market conditions, as demonstrated by the strong valuation growth over FY21 Anchor tenant classification by Contract Renta
Slide 14: Long dated lease expiry profile
Long dated lease expiry profile Lease Expiry Profile1 by Contract Rental2 Long portfolio WALT of 9.8 years and 72% of As at 31 March 21 Contract Rental2 expiring in 2030 or beyond 29.6% WALT 9.8 years FY22 3.1% Contract Rental expiring: • The Warehouse, 35 MacLaggan Street, Dunedin (1.5%) • NZ Post,
Slide 15: Sustainability
Sustainability In the past year Investore has continued to develop its sustainability practices, including developing the key objectives of its Sustainability Strategic Plan, and commencing a climate risk assessment Sustainability Strategic Plan: Objective Contribute to a Develop shared Protect the
Slide 16: Financial performance
Financial performance Mitre 10 Mega Botany, Auckland Investore Property Limited | FY21 Annual Results Presentation 16
Slide 17: Financial performance
Financial performance Change 31 Mar 21 31 Mar 20 $m $m $m % Net rental income 55.8 48.1 +7.7 +16.1 Corporate expenses (9.2) (7.5) (1.8) (23.8) Profit before net finance expense, other income and income tax 46.6 40.6 +6.0 +14.7 Net finance expense (16.6) (13.9) (2.8) (19.9) Profit before other income
Slide 18: Distributable profit
1 Distributable profit Change 31 Mar 21 31 Mar 20 $m $m $m % Profit before income tax 169.0 34.4 +134.5 +390.5 Non-recurring, and/or non-cash items, and other adjustments: - Net change in fair value of investment properties (139.3) (7.7) (131.6) (1705.2) - Loss on rental guarantee 0.3 - +0.3 +100.0
Slide 19: Financial summary
Financial summary As at As at 31 Mar 21 31 Mar 20 Change Investment property value ($m) 1,037.9 761.4 +276.4 Drawn debt ($m) (280.0) (238.4) (41.6) Loan to Value Ratio (LVR) 26.8%1 31.3% +4.5 Equity ($m) 765.7 526.7 +239.0 Shares on issue (millions) 368.1 304.5 +63.6 Net Tangible Assets (NTA) per sh
Slide 20: Capital management
Capital management Bay Central Shopping Centre, Tauranga Investore Property Limited | FY21 Annual Results Presentation 20
Slide 21: Proactive capital management
Proactive capital management As at As at Debt facilities 31 Mar 21 31 Mar 20 Key debt transactions Debt facilities limit • $50m new 5-year bank facility secured June 2020 with (ANZ, BNZ, CBA, CCB1, Westpac, ICBC2), $476m $370m the introduction of CCB1 into the syndicate including $225m bonds • $101m
Slide 22: Improved debt profile
Improved debt profile Total debt facilities $476m with $280m drawn, leaving $196m undrawn and available to fund future growth (or $128m after committed acquisitions and developments)1 Debt maturity profile As at 31 March 2021 Weighted average maturity of debt facilities $100m 3.8 years as at 31 Marc
Slide 23: Hedging and cost of debt
Hedging and cost of debt As at As at Hedging Update Cost of debt 31 Mar 21 31 Mar 20 • 100% drawn debt hedged, including fixed bonds Weighted average cost of debt (incl. current interest rate • Weighted average cost of debt at 4.04%, expected to fall as 4.04% 4.63% derivatives, bonds and bank intere
Slide 24: Looking ahead
Looking ahead Countdown, Palmerston North Investore Property Limited | FY21 Annual Results Presentation 24
Slide 25: Looking ahead
Looking ahead • Continued focus on targeted growth to enhance the portfolio and maximise returns • Ensure disciplined delivery of development opportunity at Waimak Junction • Continue refurbishment projects across the portfolio with Countdown and other key tenants • Cash dividend guidance for FY22 o
Slide 26: Appendix A
Appendix A Profit before other income/(expense) and income tax $7.7m $1.0m ($0.2 m) ($0.9 m) $29.9m ($2.6 m) ($1.4 m) $26.7m ($0.4 m) 31 Mar 20 Net rental Net rental Lower net rental NZ IFRS Higher net finance Higher Higher 31 Mar 21 increase from increase from from COVID adjustments expense managem
Slide 27: Appendix B
Appendix B Net Contract Rent $0.4m $0.2m $57.1m $8.7m $0.3m $0.4m $0.1m ($0.6 m) $47.5m As at SPL Development Expiries Rent reviews Turnover Opex Other As at 31-Mar-20 acquisition recoverability 31-Mar-21 Investment Properties (excl. lease liabilities) $139.3m $1,037.9m $0.8m $0.2m $2.5m $133.6m 1 $
Slide 28: 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 Important Notice: The information in this presentation is an overview and does not contain all information necessary to make an