Presentation to NZX Retail Investor Evenings

NZX
Retail
Investor
Evening
TO THE NZX RETAIL INVESTOR EVENING
WELCOME

PFI GENERATES INCOME FOR INVESTORS
AS PROFESSIONAL LANDLORDS TO THE
INDUSTRIAL ECONOMY, GENERATING
PROSPERITY FOR NEW ZEALAND.
Our purposeNZX
Retail
Investor
Evening
NZX LISTED PROPERTY
VEHICLE FOCUSED ON
THE INDUSTRIAL SECTOR
E S T.
1993

NZX
Retail
Investor
Evening
Overview
of PFI
Sound risk
management and
portfolio metrics.
Company gearing of

31.1
%

Liquid assets
average size of
$
15
MILLION
portfolio with an
84% Auckland
weighting
$
1.37B
EXPERIENCED
MANAGEMENT
TEAM SUPPORTED
BY STRONG
GOVERNANCE
FRAMEWORK
98.6
%
AVER AGE
OCCUPANCY
OVER PRIOR
10 YEARS
5.7
YEAR WALT

NZX
Retail
Investor
Evening
Portfolio
characteristics
$
15
MILLION PFI AVG.
Industrial property is a unique asset class, assets are typically:
Generic and occupied by a small
number of tenants, making them
less management intensive
Requiring lower levels of
capex and present a
reduced seismic risk
PFI
OWNED
1
1
1
1
4
4
4
4
74
MORE LIQUID SMALLER
1.6
PFI AVERAGE
TENANTS PER
PROPERTY
6,500
M
2
PFI AVER AGE

NZX
Retail
Investor
Evening
Historical
operational
performance
Since 2009, PFI has achieved a year end average occupancy of 98.6%
and a weighted average lease term or WALT of 4.88 years
93%
94%
95%
96%
97%
98%
99%
100%
Dec 18Dec 17Dec 16Dec 15Dec 14Dec 13Dec 12Dec 11Dec 10Dec 09
0
1
2
3
4
5
6
Occupancy(%)WALT(years)

NZX
Retail
Investor
Evening
The
journey
so far
0
200
400
600
800
1000
1,200
1,400
Dec-18
Dec-17
Dec-16
Dec-15
Dec-14
Dec-13
Dec-12
Dec-11
Dec-10
Dec-09
Dec-08
Dec-07
Dec-06
Dec-05
Dec-04
Dec-03
Dec-02
Dec-01
Dec-00
Dec-99
Dec-98
Dec-97
Dec-96
Dec-95
Dec-94
Dec-93
Founded
Listed
Managed by
AMP
Managed by
PFIM
Merger
Rights Issue
Internalisation
Rights Issue
PFI's growth in investment properties since listing

NZX
Retail
Investor
Evening
How have
we gone?
($m, unless noted)
Dec 14Dec 15Dec 16Dec 17Dec 18
Operating revenue63.866.971.173.579.9
Total operating earnings36.936.643.147.653.9
Total comprehensive in come after tax59.972.8123.482.6
1
110.1
Total assets906.91,027.21,121.81,242.21,358.9
Total liabilities341.9369.2365.7399.2443.8
Total equity565.0658.0756.1842.9915.1
Banking covenants:
Loan-to-value ratio (covenant: <50%)35.8%33.3%30.1%30.8%30.3%
Interest cover ratio (covenant: >2.0x)3.0x2.9x3.4x3.7x3.9x
Since inception PFI has delivered an average annual return of 10.75% and the last five
years has seen strong growth in rents and values whilst keeping gearing at low
levels and maintaining a high ratio of interest cover

NZX
Retail
Investor
Evening
The
market we
operate in
AKL
Investment markets
will continue to benefit
from the renewed
monetary stimulus
being implemented by
Reserve Banks around
the world suppressing
both short and long
term interest rates.
CBRE June 2019
Auckland Market Outlook
Prime industrial's
CBRE ranking
out of 12 property
classes in their
returns forecasts
Prime industrial
forecast five year
returns, comprising
5.1% income and
3.8% capital
Secondary
industrial's CBRE
ranking out of 12
property classes in
their returns forecasts
retained
Secondary industrial
forecast five year
returns, comprising
6% income and 5.2%
capital
1
ST
2
ND
8.9
%
P. A
11.2
%
P. A

NZX
Retail
Investor
Evening
EARNINGS GROWTH:
Interim profit
after tax
Our
recent
results
$
16.8
MILLION
16.8
%
FFO
Earnings per share
in line with the
prior interim period
Now 4.11 cents
per share
AFFO

NZX
Retail
Investor
Evening
VALUATION GAINS:
Increase in net tangible assets per share,
now 183.1 cents per share
Our
recent
results
Increase in value of 13 properties
from independent valuations
$
23.4M
8.8
%
OR
3.0
%
5.4CENTS
OR

NZX
Retail
Investor
Evening
POSITIVE PORTFOLIO ACTIVITY:
for an average increase
in term of 6.8 years
of the portfolio leased
during the interim period
Our
recent
results
above December 2018 market
rental assessments
31.1
YEARS
11
%
OR
72,000
M
2
MARKET RENT REVIEWS
SETTLED AT AN AVG.
4.8
%
̃
LEASED TO
TENANTS
14

NZX
Retail
Investor
Evening
Our
priorities
for 2019
ACQUISITIONS
recycle capital
from disposals into
quality industrial
properties in
sought-after areas
DISPOSALS
begin disposing
PFI’s non-industrial
assets
ASSET
MANAGEMENT
Carlaw Park a
key priority, as is
leasing of vacant
and expiring
industrial spaces
VALUE-ADD
STRATEGIES
recycle capital
from disposals
into value-add
strategies within
the existing
portfolio

NZX
Retail
Investor
Evening
Progress
DISPOSALS
Mixed-use property at
229 Dairy Flat Highway,
Albany now being
marketed for sale by
Colliers International.

NZX
Retail
Investor
Evening
Progress
ACQUISITIONS
$51.4 million committed
to two prime Auckland
industrial opportunities
– 12 year leases
secured at both sites
– 5.35% est. return

NZX
Retail
Investor
Evening
Progress
VALUE-ADD
STRATEGIES
Kiwi Steel’s 2,500m
2

warehouse at 212
Cavendish Drive
completed
early May.
Committed to four new
projects with a total
value of $8.3 million,
6.3% expected return on
incremental cost
$10.8 million of projects
in advanced stages of
planning and negotiation.

NZX
Retail
Investor
Evening
Review
and
questions
With an excellent
portfolio, a strong balance
sheet, and a favourable
outlook for industrial
property, we enter the
second half of 2019 well
positioned to deliver on
our purpose: Creating
strong, stable income
for investors and
generating prosperity
for New Zealand.
POSITIVE
PORTFOLIO
ACTIVITY
2019
PRIORITIES
ADVANCED
EARNINGS
GROWTH
VALUATION
GAINS
QUESTIONS?
H1
2019
HIGHLIGHTS

NZX
Retail
Investor
Evening
Disclaimer
The information included in this presentation
is provided as at 4 September 2019.
Property for Industry Limited (PFI) does not
guarantee the repayment of capital or the
performance referred to in this presentation.
Past performance is not a reliable indicator of
future performance.
The presentation includes a number of
forward looking statements. Forward looking
statements, by their nature, involve inherent
risks and uncertainties. Many of those risks and
uncertainties are matters which are beyond PFI’s
control and could cause actual results to differ
from those predicted. Variations could either be
materially positive or materially negative.
While every care has been taken in the
preparation of this presentation, PFI makes no
representation or warranty as to the accuracy
or completeness of any statement in it including,
without limitation, any forecasts.
This presentation has been prepared for the
purpose of providing general information, without
taking account of any particular investor’s
objectives, financial situation or needs. An
investor should, before making any investment
decisions, consider the appropriateness of
the information in this presentation, and seek
professional advice, having regard to the
investor’s objectives, financial situation and needs.
This presentation is solely for the use of the party
to whom it is provided.

NZX
Retail
Investor
Evening
References
All statistics as at 30 June
2019, aside from occupancy,
which is an average of the
previous 10 years
(see slide 4).
All statistics as at
30 June 2019.
Total comprehensive income
excludes the impact of
the 2017 internalisation,
please see “Appendix 2 –
Earnings and net tangible
assets excluding the impact
of the internalisation
payment, net of tax” in the
12 February 2019 annual
results announcement (see
here: https://www.nzx.com/
announcements/313996) for
a reconciliation of this figure.
Funds From Operations
and Adjusted Funds From
Operations are non-GAAP
financial information and are
common investor metrics,
which have been calculated
in accordance with the
guidelines issued by the
Property Council of Australia,
please see “Appendix 1 –
Appendix 1: FFO and AFFO”
in the 19 August 2019 annual
results announcement (see
here: https://www.nzx.com/
announcements/339305) for
a reconciliation of this figure.
SLIDE 2
OVERVIEW OF PFI
SLIDE 3
PORTFOLIO
CHARACTERISTICS
SLIDE 6
HOW HAVE WE
GONE?
SLIDE 8
OUR RECENT
R ES ULTS