Annual Shareholder Meeting 2018

Investore Property Limited
Annual Shareholder Meeting 2018
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Annual Meeting of Shareholders 2018

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Slide 1 – Annual Meeting of Shareholders

Slide 2 – Board of Directors
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Annual Meeting of Shareholders 2018

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Slide 3 – Agenda

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Annual Meeting of Shareholders 2018

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Slide 4 – Chair’s Address – Mike Allen
Slide 5 – FY18 an Active Year



Slide 6 – Financial Performance
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1
Forecasts contained within the Product Disclosure Statement issued by Investore Property Limited on 10 June 2016 and associated
information published in the online register maintained by the Companies Office and the Registrar of Financial Service Providers on 10 June
2016 in connection with the initial public offering (IPO).

Annual Meeting of Shareholders 2018

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Slide 7 – Non-Financial Performance
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Slide 8 – Proactive Capital Management – Bond




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Distributable Profit is a non-GAAP measure and consists of net profit/(loss) before income tax, adjusted for non-recurring and/or non-cash
items (including non-recurring adjustments for incentives payable to anchor tenants for lease extensions) and current tax. Further
information, including the calculation of distributable profit and the adjustments to net profit before income tax, is set out in note 6 to the
financial statements for the year ended 31 March 2018.
3
Contract Rental is the amount of rent payable by each tenant, plus other amounts payable by that tenant to Investore under the terms of
the relevant lease as at 31 March 2018, annualised for the 12-month period on the basis of the occupancy level for the relevant property as
at 31 March 2018, and assuming no default by the tenant.

Annual Meeting of Shareholders 2018

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Slide 9 – Proactive Capital Management - Debt

Slide 10 – Delivery of Phase 1 and 2 Strategy

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Annual Meeting of Shareholders 2018

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Slide 11 – Investment Strategy Recap

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Slide 12 - Looking Ahead

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Slide 13 – Relationship with the Manager

Slide 14 – Directors and Governance

Annual Meeting of Shareholders 2018

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Slide 15 – Manager’s Address – Philip Littlewood


Slide 16 – Active Management
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Annual Meeting of Shareholders 2018


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Slide 17 – Operational Activity and Highlights
Acquisitions
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This is 99.88% of shareholders who participated in the Special Meeting of Shareholders on 8 February 2018.

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Divestments
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Mitre 10 Mega
Slide 18 – Portfolio as at 31 March 2018

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ANNUAL SHAREHOLDER MEETING
2018

BOARD OF DIRECTORS
Mike AllenKate Healy Gráinne Troute Tim Storey John Harvey
Independent Independent Independent SIML Nominee SIML Nominee

Investore Property Limited –Annual Shareholder Meeting 2018
AGENDA
Chair’s Address –Mike Allen
Manager’s Review –Philip Littlewood
Shareholder Questions
Formal Business –Mike Allen
General Business and Shareholder Questions
3

CHAIR’S ADDRESS
MIKE ALLEN

Investore Property Limited –Annual Shareholder Meeting 2018
FY18 AN ACTIVE YEAR
5
POSITIVEactivity and PERFORMANCE
throughout the FORECAST
1
period
COMPLETIONof the foundational
STRATEGICwork PROGRAMME
1. Forecasts contained within the Product Disclosure Statement issued by Investore Property Limited (Investore) on 10 June 2016 and associated information published in the online register maintained by the Companies Office and the Registrar of FinancialService Providers
on 10 June 2016 in connection with the initial public offering (IPO).

Investore Property Limited –Annual Shareholder Meeting 2018 6
2. The valuation of all properties disposed of during the 12 months from 1 April 2017 have been disregarded in determining the portfolio valuation. As at 31 March 2017, the portfolio was valued at $660.4m.
3. Distributable Profit is a non-GAAP measure and consists of net profit/(loss) before income tax, adjusted for non-recurring and/or non-cash items (including non-recurring adjustments for incentives payable to anchor tenants for lease extensions) and current tax. Further
information, including the calculation of distributable profit and the adjustments to net profit before income tax,is set out in note 6 to the financial statements for the year ended 31 March 2018 (FY18).
Note -Values above are calculated based on the audited numbers in the financial statements for 2018 and the forecast numbers containedin the Product Disclosure Statement issued by Investore Property Limited (Investore) on 10 June 2016 and associated information
published in the online register maintained by the Companies Office and the Registrar of Financial Service Providers on 10 June 2016 in connection with Investore’s initial public offering (IPO) and may not sum accurately due to rounding
Profit Before Income Tax
$26.8m, up $1m on forecast
Portfolio Valuation
$738.3m, net valuation gain
2
3.3%
Distributable Profit
3
After
Current Income Tax
$20.5m, up $0.1m on forecast
FINANCIAL PERFORMANCE
Profit After Income Tax
$46.2m, up $27.0m on forecast
NTA Per Share
$1.64, up 9 cps from March 2017
Annual Cash
Dividend for FY18
7.46cps

Investore Property Limited –Annual Shareholder Meeting 2018
NON-FINANCIAL PERFORMANCE
7
Occupancy –99.9%
13.1 YEARS –WALT
4
Attractive portfolio LEASE EXPIRY profile –
19% expiring within 10 years and 81% NOT
EXPIRING UNTIL FY29 OR LATER
Improved PORTFOLIO DIVERSITY
4. Weighted Average Lease Term (WALT)

Investore Property Limited –Annual Shareholder Meeting 2018
PROACTIVE CAPITAL MANAGEMENT-BOND
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Outcome:
Average debt facility maturity of
3.5YRS
Debt tenor ALIGNSto long-term
leases
Improved DIVERSIFICATION
of funding
$100m
Bond Issued
18 April 2018
6 years
Interest rate
4.4%

Investore Property Limited –Annual Shareholder Meeting 2018
PROACTIVE CAPITAL MANAGEMENT-DEBT
9
CONSERVATIVEon interest rate RISK
Board reviewed LVR
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,setting a MAXIMUM 48%
Banking and bond COVENANTS to not
EXCEED 65%
41.6% LVR at balance date
5. Loan to Value Ratio (LVR)

10
DELIVERY OF PHASE 1 AND 2 STRATEGY
2015
Investore
established -by
SPL specialising
in large format
retail (LFR)
NOV
JUL
Investore listed
on NZX-$185m
capital raised
14 LFR properties
acquired
SEP
19 further LFR
properties
acquired
JUN
FEB
Animates
Invercargill
development
complete
JUL
NOV
Acquired adjacent
Timaru properties
to provide future
development
opportunity
FEB
3 Bunnings
properties acquired
for $78.5m
MAR
APR
Countdown Hornby
& Fresh Choice
Queenstown sold
for an aggregate of
$32.6m
Issue of $100m
bonds at 4.40%
p.a. interest rate
Mitre 10 Mega
extension anticipated
completion late 2018
Phase 1: Portfolio Establishment
Phase 2: Portfolio Optimisation & Capital Management
APR
6 LFR
properties
acquired
2016201720182019
OCT

Investore Property Limited –Annual Shareholder Meeting 2018
INVESTMENT STRATEGY RECAP
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Long
Lease Terms
High
Occupancy
Rate
Nationally
Recognised
Tenants

Investore Property Limited –Annual Shareholder Meeting 2018
LOOKING AHEAD
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Three focus areas:
REPOSITIONexisting PORTFOLIOto
optimise value e.g., acquisition and development
Source VALUE ADD TRANSACTIONS e.g.,
brownfields redevelopments
Continued focus on CAPITAL MANAGEMENT
1
2
3

13
RELATIONSHIP WITH THE MANAGER
ShareholdersSPL 19.9%
Appointment of Directors
Management
Agreement
SIML/Manager

Investore Property Limited –Annual Shareholder Meeting 2018
DIRECTORS AND GOVERNANCE
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TRANSITIONto a majority of INDEPENDENT
DIRECTORS
GRÁINNE TROUTE appointed 19 April 2018
FY18 BoardSELF-REVIEWcompleted
GOVERNANCEremains a key focus

MANAGER’S ADDRESS
PHILIP LITTLEWOOD

Investore Property Limited –Annual Shareholder Meeting 2018
ACTIVE MANAGEMENT
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FY18 FOCUS:
Manage the portfolio to increase
value and income growth
Seek quality development and
investment opportunities, aligned
with investment mandate
Execute capital management initiatives
1
2
3

Investore Property Limited –Annual Shareholder Meeting 2018
OPERATIONAL ACTIVITY AND HIGHLIGHTS
17
ACQUISITIONS
•Bunnings Transaction
•Acquisition of adjacent sites
DIVESTMENTS
•Countdown Hornby Christchurch
•Fresh Choice Queenstown
DEVELOPMENTS
•Mitre 10 Mega Botany
1
2
3

Investore Property Limited –Annual Shareholder Meeting 2018 18
PORTFOLIO AS AT 31 MARCH 2018
Auckland -31%
Waikato -11%
Wellington -17%
Other Nth
Island -18%
Canterbury -10%
Otago -7%
Other Sth Island -7%
General Distributors
(Countdown) -73%
Bunnings -10%
Foodstuffs -5%
Specialty -6%
Mitre10 -3%
The Warehouse-3%
TENANT DIVERSIFICATION
BY CONTRACT RENTAL
6
GEOGRAPHIC DIVERSIFICATION
BY CONTRACT RENTAL
6
6. Contract Rental is the amount of rent payable by each tenant, plus other amounts payable by that tenant to Investore underthe terms of the relevant lease as at 31 March 2018, annualised for the 12 month period on the basis of the occupancy level forthe relevant property
as at 31 March 2018, and assuming no default by the tenant.

FORMAL BUSINESS
MIKE ALLEN

RESOLUTIONS

RESOLUTION 1
Auditor’s Remuneration
That the Directors be authorised to fix the remuneration
of PricewaterhouseCoopers as auditor, for the ensuing
year.

RESOLUTION 2
Re-election of Director
That Kate Healy, who is eligible for re-election, be
re-elected as a Director of Investore Property
Limited, pursuant to clause 20.3 of the constitution.

RESOLUTION 3
Election of Director
That Gráinne Troute, who was appointed as a Director
of Investore Property Limited on 19 April 2018, be
elected as a Director of Investore, pursuant to clause
20.3 of the constitution.

GENERAL BUSINESS AND
SHAREHOLDER QUESTIONS

ANNUAL SHAREHOLDER MEETING
2018
Important Notice: The information in this presentation is an overview and does not contain all information
necessary to make an investment decision.It is intended to constitute a summary of certain information relating to
the performance of Investore for the year ended 31 March 2018. Please refer to Investore’s Annual Report 2018
for further information in relation to the year ended 31 March 2018. The information in this presentation does not
purport to be a complete description of Investore. In making an investment decision, investors must rely on their
own examination of Investore, including the merits and risks involved. Investors should consult with their own
legal, tax, business and/or financial advisors in connection with any acquisition of securities.
No representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any
statements, estimates or opinions or other information contained in this presentation, any of which may change
without notice. To the maximum extent permitted by law, Investore, Stride Investment Management Limited and
their respective directors, officers, employees, agents and advisers disclaim all liability and responsibility
(including without limitation any liability arising from fault or negligence on the part of Investore, Stride Investment
Management Limited and their respective directors, officers, employees, agents and advisers) for any direct or
indirect loss or damage which may be suffered by any recipient through use of or reliance on anything contained
in, or omitted from, this presentation.
This presentation is not a product disclosure statement or other disclosure document.
Level 12, 34 Shortland Street
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PO Box 6320, Wellesley Street
Auckland 1141, New Zealand
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