Investore Property Ltd. · NZX:IPL
Investore Property — HY22 Earnings Presentation
23 slides from Investore Property's earnings presentation, November 2021
Slide 1: Interim Results Presentation
Interim Results Presentation For the 6 months ended 30 September 2021 November 2021
Slide 2: Contents
Contents Highlights 03 Portfolio metrics 04 Portfolio 05 Financial performance 11 Capital management 15 Looking ahead 20 2
Slide 3: Highlights
Highlights Key highlights Financial highlights Profit before other Distributable profit1 after income / (expense) and current income tax $36.0m income tax acquisition of $13.3m 4 Carr Road $15.4m down $0.4m on HY21 up $3.2m or 26% from HY21 Profit after income tax $37.3m $56.9m $2.20 acquisition of
Slide 4: Portfolio metrics
Portfolio metrics (as at 30 September 2021) $1,148.6m Portfolio value1, net valuation gain of 4.1% over 6 months from 31 March 2021 4.93% Average portfolio capitalisation rate 9.5 years WALT2 99.0% Portfolio occupancy (by area) 1. Portfolio value excludes (1) the seismic works to be completed by SPL
Slide 5: Portfolio
Portfolio Countdown, Papakura Investore Property Limited | HY22 Interim Results Presentation 5
Slide 6: Targeted growth
Targeted growth Investore has delivered on its strategy of targeted growth during HY22 with $73.3m of acquisitions completed during HY22 46.9 36.0 37.3 ( 9.4 ) 142.8 1,148.61,2 133.6 12.3 22.8 9.4 7.0 19.1 742.12 752.01,2 719.3 Mar-19 Mar-20 Mar-21 Divestment of 35 Countdown Petone 4 Carr Road Fair
Slide 7: 4 Carr Road, Auckland
4 Carr Road, Auckland Investore is pleased to have delivered the strategic acquisition of the property at 4 Carr Road, Mt Roskill, Auckland 4 Carr Road is a high quality, large format retail asset, redeveloped extensively in 2018 and 2019. This property enables Investore to optimise its portfolio, b
Slide 8: Active portfolio management
Active portfolio management Portfolio metrics Key portfolio activity As at As at As at ✓ Portfolio value1 increased to $1,148.6m, 30 Sep 21 31 Mar 21 30 Sep 20 representing a net valuation gain of $44.8m or 4.1% Number of properties 44 43 43 ✓ 49 rent reviews completed over 21,496 sqm, Number of ten
Slide 9: Long dated lease expiry profile
Long dated lease expiry profile Investore’s portfolio benefits from a long Lease Expiry Profile1 by Contract Rental2 As at 30 September 2021 WALT of 9.5 years, with 73% of leases by Contract Rental2 expiring in 2030 or beyond WALT 9.5 years 28.4% Vacant Investore is in advanced negotiations to lease
Slide 10: Anchor tenants underpin income
Anchor tenants underpin income Anchor tenants continue to represent a high proportion (88%) of Investore’s total Contract Rental Anchor tenant classification by Contract Rental1 Geographic diversification by Contract Rental1 North Island South Island Countdown 64% 21% 10% Bunnings 12% 16% 84% 11% Fo
Slide 11: Financial performance
Financial performance Countdown, Stoke Investore Property Limited | HY22 Interim Results Presentation 11
Slide 12: Financial performance
Financial performance Change 30 Sep 21 30 Sep 20 $m $m $m % Net rental income 28.0 27.4 +0.6 +2.3 Corporate expenses (5.7) (5.0) (0.7) (13.9) Profit before net finance expense, other income and income tax 22.3 22.4 (0.1) (0.4) Net finance expense (6.9) (10.2) +3.3 +32.1 Profit before other income/(e
Slide 13: Distributable profit
1 Distributable profit Change 30 Sep 21 30 Sep 20 $m $m $m % Profit before income tax 60.7 95.9 (35.2) (36.7) Non-recurring, and/or non-cash items, and other adjustments: - Net change in fair value of investment properties (44.8) (83.7) +39.0 +46.5 - Gain on disposal of investment property (0.6) - (
Slide 14: Financial summary
Financial summary As at As at 30 Sep 21 31 Mar 21 Change Investment property value ($m) 1,148.6 1,037.9 +110.8 Drawn debt ($m) (344.2) (280.0) +64.2 Loan to Value Ratio (LVR) 29.8% 27.0% (2.8%) Equity ($m) 808.4 765.7 +42.7 Shares on issue (millions) 368.1 368.1 - Net Tangible Assets (NTA) per share
Slide 15: Capital management
Capital management Bay Central Shopping Centre, Tauranga Investore Property Limited | HY22 Interim Results Presentation 15
Slide 16: Proactive capital management
Proactive capital management • $70m of bank facilities refinanced and term extended As at As at for a further 12 months to August 2023. No debt now Debt facilities 30 Sep 21 31 Mar 21 expiring until FY24 Debt facilities limit • Investore has significant undrawn bank facilities (ANZ, CCB2, Westpac, I
Slide 17: Loan to value ratio
Loan to value ratio1 Investore has continued to actively manage its debt, maintaining a relatively low loan to value ratio (given the stability of its portfolio) 2.3% 1.8% (0.7%) 0.1% 2.5% (1.2%) 31.7% 29.8% 26.8% LVR as at Mar Countdown Petone 4 Carr Road Warehouse Interim Lifecycle Capex LVR as at
Slide 18: Hedging and cost of debt
Hedging and cost of debt Hedging Update • 67% drawn debt hedged, including fixed bonds • Weighted average cost of debt at 3.37%, with $50m of swaps maturing over the six month period • The Board will continue to monitor the level of hedging • Investore is considering the issue of a third bond during
Slide 19: COVID-19
COVID-19 • Investore has a high proportion of tenants that are classified as “essential businesses” and able to remain open and trading at all COVID-19 Alert Levels • The recent introduction by the Government of legislation mandating that landlords abate a fair proportion of rent is expected to resu
Slide 20: Looking ahead
Looking ahead • Investore continues to work with its tenants to negotiate abatement arrangements that ensure both the tenant and Investore maintain profitable, sustainable businesses, whilst seeking to minimise rental abatement costs to Investore FY22 cash • The Board is considering the issuance of
Slide 21: Appendix A
Appendix A Profit before other income/(expense) and income tax $3.7m $15.4m $2.0m ($0.6 m) ($0.1 m) $12.2m ($0.1 m) ($0.4 m) ($1.2 m) 30-Sep-20 Net rental Net rental Net rental Net rental Lower net finance Higher Higher 30-Sep-21 increase from decrease from decrease from reduction from expense perfo
Slide 22: Appendix B
Appendix B Net Contract Rent $3.0m $0.1m $58.8m $57.1m ($0.8m) ($0.5m) As at Acquisitions Disposal Turnover Rent reviews As at 31-Mar-21 30-Sep-21 Investment Properties (excl. lease liabilities) $44.8m $1,148.6m $2.2m $73.2m ($0.1 m) $1,037.9m ($9.4 m) As at Divestment of 35 Acquisitions Capital exp
Slide 23: Thank you
Thank you Level 12, 34 Shortland Street Auckland 1010 PO Box 6320 Victoria Street West, Auckland 1142, New Zealand T +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 investment dec