Property for Industry Limited · NZX:PFI
Property for Industry — H1 2013 Earnings Presentation
25 slides from Property for Industry's earnings presentation, Aug 5, 2013
Slide 1: Realising: 2013 Interim Results Briefing
REALISING 2013 INTERIM RESULTS BRIEFING
Slide 2: Agenda
AGENDA 1. Highlights 2. Portfolio 3. 2013 Interim Results 4. Market & Outlook 5. Strategy 6. Questions 7. Appendices 5 AUGUST 2013 PROPERTY FOR INDUSTRY 2013 INTERIM RESULTS BRIEFING 2
Slide 3: Highlights
HIGHLIGHTS • Profit after tax for the six months ended 30 June 2013 up from $7.0 million to $11.9 million • Distributable profit steady at $7.6 million or 3.44 cents per share • 28% of contract rent varied, leased or reviewed during the first half of 2013 • Tenant commitment secured to commence $4.1
Slide 4: Portfolio
PORTFOLIO
Slide 5: Portfolio Snapshot
PORTFOLIO SNAPSHOT Merged PFI PFI PFI 1 JULY 13 30 JUNE 13 31 DEC 2012 30 JUNE 12 Number of 83 50 50 49 properties Number of 137 85 86 90 tenants Contract rent $65.2 m $33.3 m $32.6 m $30.2 m Occupancy 97.3% 98.1% 97.4% 96.1% Weighted average 5.51 years 4.72 years 4.80 years 4.50 years lease term •
Slide 6: Merged Portfolio
MERGED PORTFOLIO 5 AUGUST 2013 PROPERTY FOR INDUSTRY 2013 INTERIM RESULTS BRIEFING 6
Slide 7: Lease Expiry Profile
LEASE EXPIRY PROFILE Current Vacancies 2013 Remaining Expiries Property % Property Tenant % 54 Carbine Rd & 6a Donnor Place 0.2% 18 Ron Driver Place New Zealand Post 0.3% 50 Parkside Road 0.2% 44 Mandeville Street Windflow Technology 0.3% 85 Cavendish Drive 0.3% 50 Parkside Road Transpacific Industr
Slide 8: Rental Income
RENTAL INCOME • Acquisitions of 8a & 8b Canada Crescent and 170 Swanson Road (acquired in 2012), 30-32 Bowden Road (acquired in mid March 2013) • Disposals of 80 Lunn Ave and 19a & 29 Omega Street (disposed in 2012) • 29,470 sqm of space leased to 9 parties for an average term of 4.6 years during H1
Slide 9: Investment Properties
INVESTMENT PROPERTIES • $14.6m Acquisition of 30-32 Bowden Road completed mid March 2013, revaluation gain on purchase of $0.4m • Portfolio not revalued by independent valuers, next revaluation as at 31 December 2013 5 AUGUST 2013 PROPERTY FOR INDUSTRY 2013 INTERIM RESULTS BRIEFING 9
Slide 10: Refurbishment & Development
REFURBISHMENT & DEVELOPMENT 54 Carbine Road & 15-19 Copsey Place, 124b Hewletts Road, 6a Donnor Place, Avondale, Mount Maunganui Mount Wellington Auckland Auckland Development cost $4.1m $2.6m $7.9m Tenant(s) Autex Industries Tycab Ballance Agri-Nutrients Barkers Clothing Canterbury Area 6,900 sqm 1
Slide 11: 2013 Interim Results
2013 INTERIM RESULTS
Slide 12: Distributable Profit
DISTRIBUTABLE PROFIT • Distributable profit in line with prior year • PY distributable profit was increased by ~0.34 cps due to one- off items reversed • Refer Appendix 1: Financial Performance and Appendix 2: Distributable Profit Note: Distributable profit is non- GAAP financial information and is
Slide 13: Net Tangible Assets
NET TANGIBLE ASSETS • Interim external revaluation not performed, revaluation represents uplift on purchase of 30-32 Bowden Road only • Q2 dividend paid early as part of merger structuring, adjusted NTA up ~1.8 cps • Adjusting for the Q2 dividend paid early, NTA increases as a result of a change in
Slide 14: Treasury & Capital Management: Hedging
TREASURY & CAPITAL MANAGEMENT: HEDGING • Hedging restructure completed, close out cost of DPF hedging $8.2M • Current hedging of $163M at average rate of 4.55% for average of 3.6 years • Forward start hedging of $55M at average rate of 4.17% for average of 6.1 years • Total hedging of $218M at avera
Slide 15: Treasury & Capital Management: Bank Facilities
TREASURY & CAPITAL MANAGEMENT: BANK FACILITIES BANK FACILITY DETAILS 1 July 2013 31 December 2012 Drawn ($m) $320.5 $114.2 Facility limit ($m) $350.0 $150.0 Average facility duration 3.0 years 3.1 years Gearing (policy < 40%, covenant < 50% (2012: policy < 35%)) 39% 30% 5 AUGUST 2013 PROPERTY FOR IN
Slide 16: Market & Outlook
MARKET: & OUTLOOK. OTT a NA TN CAR AWA AVY NA
Slide 17: Market & Outlook
MARKET & OUTLOOK Prime Value % Portfolio Prime Occupancy WALT Change Value Occupancy1 (% change YTD)1 Auckland 86.9% 97.2% 5.41 years 96.0% 1.7% Waikato & BOP 5.2% 100.0% 6.35 years n/a 0% Wellington 4.6% 94.7% 4.55 years 90.8% 6.3% Christchurch 3.3% 100.0% 7.97 years 93.7% 15.7% 1 Colliers Research
Slide 18: Strategy
STRATEGY
Slide 19: Strategy
STRATEGY • PFI’s focus on industrial property and strategy articulated during the merger process remains: Manage the vacancy and upcoming lease expiries Consider the acquisition of quality industrial property in the main centres Consider the sale of selected assets to recycle capital into higher qua
Slide 20: Questions
QUESTIONS
Slide 21: Appendices
APPENDICES
Slide 22: Appendix 1: Financial Performance
APPENDIX 1: FINANCIAL PERFORMANCE For the six months ended (unaudited, $000) June 2013 June 2012 Change Rental income 15,887 14,608 1,279 Interest and management fee income 102 111 (9) Total operating revenue 15,989 14,719 1,270 Interest expense and bank fees (4,178) (4,025) (153) Management fees (1
Slide 23: Appendix 2: Distributable Profit
APPENDIX 2: DISTRIBUTABLE PROFIT For the six months ended (unaudited, $000) June 2013 June 2012 Change Profit after taxation 11,865 7,046 4,819 Adjusted for Unrealised fair value change in investment properties (368) - (368) Gains on disposals of investment properties (47) - (47) Unrealised fair val
Slide 24: Appendix 3: Financial Position
APPENDIX 3: FINANCIAL POSITION As at (unaudited, $000) June 2013 December 2012 Change Investment properties and capital work in progress 398,769 382,180 16,589 Other assets 3,231 2,432 799 Total assets 402,000 384,612 17,388 Borrowings 135,750 114,200 21,550 Deferred tax liabilities 7,075 7,881 (806
Slide 25: Disclaimer
DISCLAIMER The information included in this presentation is provided as at 5 August 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 reliabl
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