Property for Industry Limited · NZX:PFI
Property for Industry — H1 2012 Earnings Presentation
24 slides from Property for Industry's earnings presentation, Aug 6, 2012
Slide 1: 2012 Interim Results & Briefing
2012 INTERIM RESULTS & BRIEFING 6 AUGUST 2012 Healthcare Logistics: 58 Richard Pearse Drive, Mangere
Slide 2: Agenda
1. Highlights 2. Portfolio Snapshot AGENDA 3. 2012 Interim Results 4. Portfolio 5. Strategy 6. Questions DHL: 7-9 Niall Burgess Rd, Mt Wellington 6 AUG 2012 2012 INTERIM RESULTS AND BRIEFING | PROPERTY FOR INDUSTRY 2
Slide 3: Highlights
HIGHLIGHTS Secured 11 new or varied leases, accounting for more than 14% of PFI’s contract rent; Only one lease expiry remaining in 2012; WALT increased to 4.50 years from 4.17 years in December 2011; Net profit after tax rises 6.0% to $7.046 million from $6.649 million; Second quarter dividend held
Slide 4: Portfolio Snapshot
PORTFOLIO SNAPSHOT Key property metrics June 2012 December 2011 June 2011 Number of properties 49 49 51 Number of tenants 90 89 96 Contract rent (million) $30.2 $30.2 $30.6 Occupancy 96.1% 95.6% 97.4% Weighted average lease term (WALT) 4.50 4.17 4.08 6 AUG 2012 2012 INTERIM RESULTS AND BRIEFING | PR
Slide 5: 2012 Interim Results
2012 INTERIM RESULTS DHL: 7-9 Niall Burgess Rd, Mt Wellington 6 AUG 2012 2012 INTERIM RESULTS AND BRIEFING | PROPERTY FOR INDUSTRY 5
Slide 6: Operating Revenue
OPERATING REVENUE 6 AUG 2012 2012 INTERIM RESULTS AND BRIEFING | PROPERTY FOR INDUSTRY 6
Slide 7: Distributable Profit per Share
DISTRIBUTABLE PROFIT PER SHARE 6 AUG 2012 2012 INTERIM RESULTS AND BRIEFING | PROPERTY FOR INDUSTRY 7
Slide 8: Treasury & Capital Management
TREASURY & CAPITAL MANAGEMENT Balance sheet strong; gearing at 30.1%; Capacity for earnings accretive opportunities; Ratio of operating cash flows to distributable profit unchanged; Dividend reinvestment scheme suspended, will be reviewed on a quarter-by-quarter basis; Net tangible assets per share
Slide 9: Treasury & Capital Management: Hedging
TREASURY & CAPITAL MANAGEMENT: HEDGING 6 AUG 2012 2012 INTERIM RESULTS AND BRIEFING | PROPERTY FOR INDUSTRY 9
Slide 10: Portfolio
PORTFOLIO Stryker: 515 Mt Wellington Highway, Mt Wellington 6 AUG 2012 2012 INTERIM RESULTS AND BRIEFING | PROPERTY FOR INDUSTRY 10
Slide 11: Lease Expiry Profile 31 December 2011
LEASE EXPIRY PROFILE 31 DECEMBER 2011 6 AUG 2012 2012 INTERIM RESULTS AND BRIEFING | PROPERTY FOR INDUSTRY 11
Slide 12: Lease Expiry Profile 30 June 2012
LEASE EXPIRY PROFILE 30 JUNE 2012 6 AUG 2012 2012 INTERIM RESULTS AND BRIEFING | PROPERTY FOR INDUSTRY 12
Slide 13: Leasing Progress
LEASING PROGRESS Leasing – 7 new leases – 15,752sqm - $1.59m (5.3%) of contract rent – 8.9 years average lease term Retentions – 4 new leases – 28,017sqm - $2.67m (8.9%) of contract rent – 9.0 years average lease term Rent reviews – $10.93m of contract rent under review in FY12 – 12 reviews complete
Slide 14: Market Outlook
MARKET OUTLOOK Both prime and secondary industrial rents are showing signs of improvement Auckland industrial vacancy remains steady Lower interest rates and greater availability of debt in addition to improving fundamentals is benefitting buyer sentiment and bringing more buyers into the market whi
Slide 15: PFI Position
PFI POSITION Strong rental and capital growth in key PFI locations : 2002-2012 Growth Net rents Capital % of PFI values portfolio Mt Wellington 2.8% 5.4% 43.9% Airport / Mangere 2.8% 4.8% 3.4% Manukau / Wiri 4.1% 7.3% 8.4% East Tamaki 3.4% 5.5% 7.9% Rosebank / Avondale 3.5% 6.8% 15.0% Source: Collie
Slide 16: Strategy
STRATEGY DHL: 7-9 Niall Burgess Rd, Mt Wellington 6 AUG 2012 2012 INTERIM RESULTS AND BRIEFING | PROPERTY FOR INDUSTRY 16
Slide 17: Strategy
STRATEGY Property for Industry – dedicated industrial fund Focus on cash returns to shareholders Work closely with existing and new tenants to meet their needs Collect the rent Deal with current vacancy and upcoming expiries Recycle capital and deploy debt capacity into accretive core industrial opp
Slide 18: Questions
QUESTIONS Stryker: 515 Mt Wellington Highway, Mt Wellington 6 AUG 2012 2012 INTERIM RESULTS AND BRIEFING | PROPERTY FOR INDUSTRY 18
Slide 19: Appendices
APPENDICES DHL: 7-9 Niall Burgess Rd, Mt Wellington 6 AUG 2012 2012 INTERIM RESULTS AND BRIEFING | PROPERTY FOR INDUSTRY 19
Slide 20: Appendix 1: Statement of Financial Performance
APPENDIX 1: STATEMENT OF FINANCIAL PERFORMANCE For the six months ending (unaudited, $000) June 2012 June 2011 Change Gross rental income 14,716 15,621 (905) Interest income 3 13 (10) Total operating revenue 14,719 15,634 (915) Interest expense and bank fees (4,025) (4,122) 97 Management fees (936)
Slide 21: Appendix 2: Distributable Profit
APPENDIX 2: DISTRIBUTABLE PROFIT For the six months ending (unaudited, $000) June 2012 June 2011 Change Profit after taxation 7,046 6,649 397 Losses on disposals of investment properties - 167 (167) Fair value change in derivative financial instruments (802) 1,228 (2,030) Deferred taxation 643 (11)
Slide 22: Appendix 3: Statement of Financial Position
APPENDIX 3: STATEMENT OF FINANCIAL POSITION As at (unaudited, $000) June 2012 December 2011 Change Investment properties 358,606 355,855 2,751 Other assets 3,274 2,658 616 Total assets 361,880 358,513 3,367 Borrowings 105,300 102,500 2,800 Deferred tax liability 7,069 6,426 643 Interest rate swaps 8
Slide 23: Appendix 4: Loan Facilities and Hedging
APPENDIX 4: LOAN FACILITIES AND HEDGING Facility 30 Jun 2012 31 December 2011 Drawn (excl. overdraft, $m) $105,30 $102.50 Facility limit ($m) $150.00 $150.00 Headroom ($m) $44.70 $47.50 Facility term 31-Jan-16 31-Jan-16 Facility banks ANZ, ASB ANZ, ASB Covenants Gearing (policy < 35%, covenant < 45%
Slide 24: Disclaimer
DISCLAIMER The information included in this presentation is provided as at 6 August 2012. Neither Property For Industry Limited (PFI) nor PFIM Limited (PFIM), the manager of PFI, guarantee the repayment of capital or the performance referred to in this presentation. Past performance is not a reliabl
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