Property for Industry Limited · NZX:PFI
Property for Industry — FY2012 Earnings Presentation
26 slides from Property for Industry's earnings presentation, Feb 18, 2013
Slide 1: Property For Industry 2012 Results Briefing
PROPERTY FOR INDUSTRY 2012 RESULTS BRIEFING 18 February 2013
Slide 2: Agenda
AGENDA 1. Highlights 2. Portfolio 3. 2012 Results 4. Market & Outlook 5. Strategy 6. Questions 7. Appendices 18 FEBRUARY 2013 PROPERTY FOR INDUSTRY 2012 RESULTS BRIEFING 2
Slide 3: Highlights
HIGHLIGHTS • Occupancy increased to 97.4%, weighted average lease term increased to 4.80 years; • $12.302 million or 3.3% portfolio revaluation uplift resulting in 5 cent increase in net tangible assets to 113 cents per share; • Almost 50% of contract rent varied, leased or reviewed during the year;
Slide 4: Portfolio
PORTFOLIO Fletcher Building Products Limited, 30-32 Bowden Road 18 FEBRUARY 2013 PROPERTY FOR INDUSTRY 2012 RESULTS BRIEFING 4
Slide 5: Portfolio Snapshot
PORTFOLIO SNAPSHOT Portfolio snapshot as at December December 20121 2011 Number of properties 50 49 Number of tenants 86 89 Contract rent (million) $32.6 $30.2 Occupancy 97.4% 95.6% Weighted average lease term (years) 4.80 4.17 1 All 31 December 2012 portfolio statistics assume settlement of the acq
Slide 6: Investment Properties
INVESTMENT PROPERTIES 18 FEBRUARY 2013 PROPERTY FOR INDUSTRY 2012 RESULTS BRIEFING 6
Slide 7: Lease Expiry Profile
LEASE EXPIRY PROFILE Under agreement 18 FEBRUARY 2013 PROPERTY FOR INDUSTRY 2012 RESULTS BRIEFING 7
Slide 8: Rental Income
RENTAL INCOME 18 FEBRUARY 2013 PROPERTY FOR INDUSTRY 2012 RESULTS BRIEFING 8
Slide 9: Acquisitions
ACQUISITIONS 8A & 8B Canada Cres, 170 Swanson Road, 30-32 Bowden Road, Hornby, Swanson, Mt. Wellington, Christchurch Auckland Auckland Purchase price1 $11.250 m $11.926 m $14.600 m Tenant Polarcold Stores Ltd Transportation Auckland Fletcher Building Products Corporation Limited Limited Property des
Slide 10: Disposals
DISPOSALS 80 Lunn Avenue, 29 Omega Street, 19A Omega Street, Mt. Wellington, North Harbour North Harbour, Auckland Auckland Auckland Net sales proceeds $12.499 m $0.809 m $3.006 m Gain on disposal1 $0.899 m $0.069 m $0.006 m Tenant Various Vacant Vacant Property description Retail Gym Small warehous
Slide 11: Development & Repositioning
DEVELOPMENT & REPOSITIONING • Multispares NZ Limited’s new warehouse at PFI’s Seaview Business Park completed 31 January 2013; • Expansion land available for development at 212 Cavendish Drive, 6A Donnor Place and Seaview Business Park; • Repositioning planned for 15 Copsey Place and 50 Parkside Roa
Slide 12: 2012 Results
2012 RESULTS Multispares NZ Limited, Seaview Business Park 18 FEBRUARY 2013 PROPERTY FOR INDUSTRY 2012 RESULTS BRIEFING 12
Slide 13: Distributable Profit
DISTRIBUTABLE PROFIT 18 FEBRUARY 2013 PROPERTY FOR INDUSTRY 2012 RESULTS BRIEFING 13
Slide 14: Net Tangible Assets
NET TANGIBLE ASSETS 18 FEBRUARY 2013 PROPERTY FOR INDUSTRY 2012 RESULTS BRIEFING 14
Slide 15: Treasury & Capital Management
TREASURY & CAPITAL MANAGEMENT • Net investment of ~$11m, including ~$17m generated from disposals; • Gearing will rise to ~32.5% following settlement of 30- 32 Bowden Road, Mount Wellington in Q1 2013; • Increased facility utilisation, minor changes to hedging, weighted average cost of funds reduced
Slide 16: Market & Outlook
Transportation Auckland Corporation Limited , 170 Swanson Road MARKET & OUTLOOK 18 FEBRUARY 2013 PROPERTY FOR INDUSTRY 2012 RESULTS BRIEFING 16
Slide 17: Market & Outlook
MARKET & OUTLOOK • Considerably more optimism evidenced in the industrial property market in 2012 than the previous three to four years; • Leasing activity up but quieter in the last quarter of 2012 than the first three quarters; • Noticeably increased investor activity in the second half of the yea
Slide 18: Strategy
STRATEGY Fletcher Building Products Limited, 30-32 Bowden Road 18 FEBRUARY 2013 PROPERTY FOR INDUSTRY 2012 RESULTS BRIEFING 18
Slide 19: Strategy
STRATEGY • Managing the vacancy and upcoming lease expiries in the portfolio; • Seeking to maximise long term value of each property through proactive lease management and undertaking of accretive capital projects; • Development of existing expansion land and repositioning of properties as tenant de
Slide 20: Questions
QUESTIONS Information Management Group Limited, 8 McCormack Place 18 FEBRUARY 2013 PROPERTY FOR INDUSTRY 2012 RESULTS BRIEFING 20
Slide 21: Appendices
APPENDICES Multispares NZ Limited, Seaview Business Park 18 FEBRUARY 2013 PROPERTY FOR INDUSTRY 2012 RESULTS BRIEFING 21
Slide 22: Appendix 1: Financial Performance
APPENDIX 1: FINANCIAL PERFORMANCE For the year ending (audited, $000) December 2012 December 2011 Change Rental income 29,214 30,589 (1,375) Interest and management fee income 210 285 (75) Total operating revenue 29,424 30,874 (1,450) Interest expense and bank fees (8,103) (8,343) 240 Management fee
Slide 23: Appendix 2: Distributable Profit
APPENDIX 2: DISTRIBUTABLE PROFIT For the year ending (audited, $000) December 2012 December 2011 Change Profit after taxation 26,932 16,348 10,584 Adjusted for Fair value change in investment properties (12,302) (3,653) (8,649) Gains on disposals of investment properties (1,059) (261) (798) Tax on d
Slide 24: Appendix 3: Financial Position
APPENDIX 3: FINANCIAL POSITION As at (audited, $000) December 2012 December 2011 Change Investment properties and capital WIP 382,180 355,898 26,282 Other assets 2,432 2,615 (183) Total assets 384,612 358,513 26,099 Borrowings 114,200 102,500 11,700 Deferred tax liabilities 7,881 6,426 1,455 Interes
Slide 25: Appendix 4: Treasury
APPENDIX 4: TREASURY 31 December 2012 31 December 2011 Facility Drawn (excl. overdraft, $m) $114.200 $102.500 Facility limit ($m) $150.000 $150.000 Headroom ($m) $35.800 $47.500 Facility term 31-Jan-16 31-Jan-16 Facility banks ANZ, ASB ANZ, ASB Covenants 1 Gearing (policy < 35%, covenant < 50% (2011
Slide 26: Disclaimer
DISCLAIMER The information included in this presentation is provided as at 18 February 2013. 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 reli