Announcement

ANNREP: IPL: Investore Property Limited - FY19 Annual Results 08:30a.m. 
IPL  
21/05/2019 08:30  
ANNREP  
PRICE SENSITIVE  
REL: 0830 HRS Investore Property Limited (NS)  
 
ANNREP: IPL: Investore Property Limited - FY19 Annual Results  
 
Investore Property Limited (Investore) is pleased to announce its financial  
results for the twelve-month period ended 31 March 2019 (FY19).  
 
During FY19, Investore has continued with its commitment to deliver stable  
and enduring returns to shareholders and this has been achieved through the  
company's strategic principles of active portfolio management, targeted  
growth, continued optimisation of the portfolio and proactive capital  
management.  
 
In addition to the release of Investore's FY19 Annual Results, the Board also  
announces:  
 
o Independent Director Kate Healy has advised the company that she will be  
stepping down from the Investore Board of Directors with effect from 22 May  
2019, in order to explore other opportunities in Australia where she now  
resides. The Board extends its gratitude to Kate for her valuable  
contribution to the company since the time of its listing on the NZX. Her  
legal and property skills and commercial acumen have assisted Investore as it  
has grown into the successful company it is today. The Board wishes Kate all  
the best for the future. The Board will commence a formal process to  
identify a new independent Director for the Board, as the independent  
majority representation on the Investore Board is an important governance  
feature of the company.  
 
o The Board has also determined to conclude the share buyback programme which  
was announced on 1 August 2018. The share buyback was paused from 11  
February 2019, pending the third quarter dividend announcement and no further  
shares have been acquired since that time. The Board is satisfied with the  
share buyback programme, considering it an efficient use of balance sheet  
capacity.  
 
Highlights for FY19 Include  
 
Financial Performance Highlights (Prior year FY18 figures in brackets)  
 
o Net rental income of $47.4m ($44.2m), up $3.3m  
o Corporate expenses of $6.0m ($5.4m), up $0.6m, largely due to a performance  
fee of $0.5m payable to Stride Investment Management Limited for the quarter  
ended 31 March 2019  
o Profit before other income/(expense) and income tax of $27.0m ($26.8m), up  
$0.2m  
o Profit after income tax of $38.6m ($46.2m), down $7.6m, due largely to  
lower revaluation movement as compared to FY18  
o Distributable profit (Note 1) after current income tax of $20.9m ($20.5m),  
up $0.4m  
o Annual cash dividend of 7.60cps (7.46cps), up 0.14cps on FY18 and initial  
FY19 forecast. 1.935cps cash dividend for quarter ended 31 March 2019  
 
Portfolio Highlights (As at 31 March 2018 figures in brackets)  
 
o WALT(Note 2) 12.4 years (13.1 years), with two significant lease renewals  
o Total property portfolio value (including Countdown Dunedin South,  
subsequently sold on 1 April 2019) of $761.2m ($738.3m), net valuation gain  
of $17.2m or 2.3%  
o Portfolio market capitalisation rate strengthened to 6.05% (6.19%)  
o Occupancy at 99.9% (99.9%)  
o Net Tangible Assets (NTA) backing per share of $1.70 ($1.64)  
o Countdown Dunedin South divestment for $19.328m at 5.6% premium to 31 March  
2018 book value  
o Mitre 10 Mega, Botany, Auckland, development completed increasing property  
value to $34.1m, up 11% from 31 March 2018, and generating additional $0.3m  
p.a. net rental  
o Further refurbishments completed at Countdown stores in Greenlane Auckland,  
Lower Hutt and Upper Hutt in FY19, with a total of 10 store refurbishments  
completed across Investore-owned Countdown stores in the last two years  
 
Proactive Capital Management  
 
o $100m six year fixed rate listed inaugural bond issue April 2018  
o $70m bank debt refinanced, term extended to 2022  
o Purchased 1.7m shares through share buyback programme  
o Loan to value ratio (LVR) 41.8% (41.6% as at 31 March 2018)  
o Following settlement of the Countdown Dunedin South sale on 1 April 2019,  
LVR reduced to 40.4%  
o Share buyback programme has now been concluded  
 
Management and Governance  
 
o Fabio Pagano, new Investore Fund Manager appointed  
o Independent Director Grainne Troute elected 27 June 2018  
o Director Kate Healy stepping down as a Director from 22 May 2019  
 
Year Ahead and Conclusion  
 
o Disciplined and considered investments to target growth opportunities  
o Continued focus on Countdown property refurbishments aligned with  
Countdown's refurbishment plans  
o Target properties and tenants that focus on non-discretionary and  
convenience retail  
o Continued proactive capital management  
o Consider further capital management initiatives which may include a second  
bond issue  
o Evolve Investore's sustainability strategy  
o Annual cash dividend guidance of 7.60cps for FY20  
 
Notes:  
 
1. Distributable profit is a non-GAAP financial measure adopted by Investore  
to assist Investore and its investors in assessing Investore's profit  
available for distribution. It is defined as profit/(loss) before income tax  
adjusted for determined 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 profit after income tax, is  
set out in note 3.2 to the annual financial statements for the year ended 31  
March 2019.  
 
2. Weighted average lease term.  
 
Ends  
 
Attachments provided to NZX:  
* Investore Property Limited - FY19 Annual Report - 210519  
* Investore Property Limited - FY19 Annual Results Presentation - 210519  
* Investore Property Limited - NZX Appendix 1 - 210519  
* Investore Property Limited - NZX Appendix 7 - 210519  
* Investore Property Limited - Shareholders Communications Notice - 210519  
* Investore Property Limited - Bondholders Communications Notice - 210519  
 
For further information please contact:  
 
Mike Allen, Chairman, Investore Property Limited  
Mobile: 021 606 134 - Email: mike.allen@investoreproperty.co.nz  
 
Philip Littlewood, Chief Executive Officer, Stride Investment Management  
Limited as manager of Investore  
Mobile: 021 230 3026 - Email: philip.littlewood@strideproperty.co.nz  
 
Jennifer Whooley, Chief Financial Officer, Stride Investment Management  
Limited as manager of Investore  
Mobile: 021 536 406 - Email: jennifer.whooley@strideproperty.co.nz  
 
Louise Hill, General Manager Corporate Services, Stride Investment Management  
Limited as manager of Investore  
Mobile: 0275 580 033- Email: louise.hill@strideproperty.co.nz  
End CA:00334776 For:IPL Type:ANNREP Time:2019-05-21 08:30:10