Slide 1: Asset Plus Limited Financial Result for the year ended 31 March 2022
0 5 2 0 Asset Plus Limited 2 2 Financial Result for the year ended 31 March 2022
Slide 2: Overview
Overview 01 Result summary 02 Key metrics 03 Strategic update 04 Financial performance 05 Portfolio update 06 Outlook Assetplusnz.co.nz
Slide 3: Result summary
Result summary • Result impacted by relatively flat valuations and loss of rental income • Total profit for the year net of tax of $2.93m (FY21 profit of $15.95m) – key driver being that FY21 included large revaluation gain with no similar gain in FY22 • AFFO 1 of $4.22m ($5.82m in FY21) • Net renta
Slide 4: Result summary
Result summary • Sale of 35 Graham Street for $65m with deferred settlement – conditional on shareholder vote to be held 3 June 2022 • Unrealised loss on the fair value of investment property of $1.2m or 0.5% decrease on valued property, primarily driven by write-off of work in progress at Graham St
Slide 5: Result summary
Result summary • WALE of 2.21 years, which has decreased from 2.75 years as 35 Graham Street is now vacant – following Eastgate sale the WALE reduces to ~1.40 years (excluding Munroe Lane) • Loan-to-value ratio of 25.7% (5.4% as at 31 March 2021), based on current carrying values – increase is due t
Slide 6: Key metrics
Key metrics as at 31 March 2022 Properties WALE LVR Portfolio Value 5 2.21 years 25.7% (Mar 21: 5) (Mar 21: 2.75) (Mar 21: 5.4%) Number of Tenants Occupancy NTA $216.4m (Mar 21: $172.8m) 73 58.0% $0.440 (Mar 21: 71) (Mar 21: 98.0%) (Mar 21: $0.448) Assetplusnz.co.nz 6
Slide 7: Strategic update
Strategic update • Key focus in the short to medium term is delivery of the Munroe Lane development, which will add to the portfolio value a brand new, sustainable, well located office building with blue chip tenant covenant across two thirds of the property. • The proposed divestment of 35 Graham S
Slide 8: Financial performance
Financial performance Year ended Year ended Mar 22 Mar 21 Variance • Net rental revenue reduced by $2.22m due to the reduced $m income at 35 Graham Street. From late June 2021 the rent $m $m reduced by ~50%, then 100% vacant from late December Gross Income 11.93 13.90 (1.97) 2021. Opex increased due
Slide 9: Net rental performance
Net rental performance Year ended Year ended • Eastgate is $0.15m higher due to higher OPEX recoveries and Mar 22 Mar 21 Variance lower COVID-19 rental relief and abatement in FY22. $m $m $m Eastgate 3.70 3.55 0.15 • Stoddard Road is $0.11m lower due to higher COVID-19 Stoddard Road 2.42 2.53 (0.11)
Slide 10: Administration & Finance Expenses
Administration & Finance Expenses Year ended Year ended • Administration costs were down $0.02m Variance Mar 22 Mar 21 $m $m $m • Management fees increased due to the development of Management Fees 0.99 0.79 (0.20) Munroe Lane and the increase in assets under management. Directors’ Fees 0.30 0.30 -
Slide 11: Balance Sheet and Funding
Balance Sheet and Funding Year ended Year ended • Investment properties include Munroe Lane ($67.5m), Variance Graham Street ($59.0m) and Stoddard Road ($43.5m). Mar 22 Mar 21 $m $m $m • Eastgate Shopping Centre ($43.46m) is held for sale at the confirmed exit Cash 4.4 3.1 1.3 price. Investment Prop
Slide 12: Funding
Funding Loan facilities Limit Drawn Margin Line Fee Total • Total bank facility limit is $130m as at 31 March 2022, $m $m % % % with drawn debt at $55.7m. Working Capital 12.6 4.5 1.80 1.20 3.00 • This limit reduces to $83.5m post the upcoming debt repayments Investment 51.2 51.2 1.80 1.20 3.00 on s
Slide 13: Amendments to Loan Facility
Amendments to Loan Facility • BNZ has been supportive of the company’s strategy to divest non-core assets as well as the development of Munroe Lane. BNZ has agreed to test the Interest Cover Ratio (ICR) covenant for the period from 1 April 2022 If 35 Graham St If 35 Graham St until 31 March 2023 (in
Slide 14: Portfolio movements
Portfolio movements Opening balance WIP Capex & Other Fair Value Final Valuations WIP Carrying Value Mar 21 ($m) reclassified ($m) movements ($m) movement ($m) Mar 22 ($m) ($m) ($m) Properties held for sale Eastgate 42.6 - 0.8 0.1 43.5 - 43.5 Kamo – bare land 2.6 0.1 0.1 0.1 2.9 - 2.9 Investment pro
Slide 15: COVID-19 impact
COVID-19 impact • The COVID-19 pandemic created a level of material future uncertainty in the real estate market. The immediate impacts were widespread as a result of the government mandated lockdowns. • Those lockdowns, and evolving variants of COVID, meant that the impacts have endured for longer
Slide 16: Eastgate, Christchurch
Eastgate, Christchurch • Unconditionally sold with settlement now to occur 15 working days after new titles are granted for the property following a subdivision the purchaser is completing. • If titles are not issued by 1 July 2022, Asset Plus has the option to terminate the sale and purchase agreem
Slide 17: Stoddard Road, Auckland
Stoddard Road, Auckland • Modest rental abatement and relief was provided during the year to ensure our tenants’ ongoing viability. • Renewals secured for all lease expiries during the period, representing 14.7% of the total net rental income for the Centre. • WALT of 3.50 years, which continues to
Slide 18: 35 Graham Street, Auckland
35 Graham Street, Auckland • Sold, conditional on Shareholder approval, for $65.0m to Mansons TCLM with settlement scheduled for 1 December 2023 (subject to purchaser right to extend settlement to 1 December 2024). 10% deposit payable upon Shareholder approval being obtained. • The Notice of Meeting
Slide 19: 35 Graham Street, Auckland
35 Graham Street, Auckland • There has been a structural shift in office leasing sentiment and investor appetite in the office leasing sector as a result of COVID-19 which has impacted on our ability to lease the property to date either under a light refurbishment scenario, or full redevelopment sce
Slide 20: Munroe Lane, Albany
Munroe Lane, Albany • Development is progressing well, albeit delayed as a result of COVID impacts. • COVID impacts have resulted in approximately $1.5m of additional costs to date that will be funded from the project’s contingency. • Forecast completion and lease commencement with Auckland Council
Slide 21: Munroe Lane - leasing overview
Munroe Lane - leasing overview • 6 levels plus basement carparking in the heart of Albany with extensive car parking. • ~750m2 of Café / Food & Beverage / Retail / Office outlets on ground level available for lease – approximately 25% of this space is now subject to a Heads of Agreement with a reput
Slide 22: Kamo, Whangarei
Kamo, Whangarei • Large 38,000m2 industrial site located adjacent to SH1 acquired as a pipeline development opportunity. • Now held for sale to reduce company’s future capital requirements. • A marketing campaign has been undertaken and the company is working with potential buyers. augusta.co.nz Ass
Slide 23: Outlook
Outlook • Leasing the balance of Munroe Lane, and successfully completing the development remains key focus. • When settled, the sale of 35 Graham Street will mitigate balance sheet constraints and provide a pathway back to a conservative gearing position. • The Board remains committed to delivering
Slide 24: Appendices
© ASSET PLUS+#+ manaceo ay Centuria Appendices
Slide 25: Appendix 1: Portfolio summary
Appendix 1: Portfolio summary Graham Street, Auckland Eastgate, Christchurch Stoddard Road, Auckland Munroe Lane, Auckland Kamo, Whangarei Valuation/Carrying $59.0 (Mar-21: $61.0) $43.46 (Mar-21: $42.6) $43.5 (Mar-21: $41.5) $67.5 (Mar-21: $25.0) $2.9 (Mar-21: $2.7) Value ($m)1,3 WALE (years) 0.00 (
Slide 26: Appendix 2: AFFO reconciliation
Appendix 2: AFFO reconciliation Year ended Year ended Mar 22 Mar 21 Var $m $m $m Total Comprehensive Income Net of Tax 2.93 15.95 (13.02) Loss/ (Gain) From Sales of Investment Property (0.21) 0.32 (0.53) Fair value (gain) / loss on investment property 1.22 (9.19) 10.41 Deferred Tax Expense 0.21 (1.1
Slide 27: Thank You
© ASSET PLUS+#+ manaceo ay Centuria Thank You
Slide 28: Important Notice
Important Notice This presentation contains not only a review of operations, but may also contain some forward looking statements (including forecasts and projections) about Asset Plus Limited (APL) and the environment in which APL operates. Because these statements are forward looking, APL’s actual