Investor Presentaiton
Investec
Australia Property Fund
Expected to be 0.1% accretive to FFO and 4.8% accretive to AFFO in FY21 on a pro forma basis
Summary
•
IAPF Group pro forma forecast FY21
income statement¹ calculated as:
A. forecast income statement for IAPF I for
the year ending 31 March 2021
prepared on a standalone basis;
B. forecast income statement for IAPF II
for the period from 1 November 2020 to
31 March 2021, prepared on a
standalone basis;
C. the impact arising from the Proposal
and elimination adjustments with
respect to cross-staple transactions
assuming implementation occurred on 1
November 2020; and
D. the pro forma impact arising from the
Proposal assuming 1 April 2020
implementation
The Proposal is expected to be 0.1%
accretive to FFO and 4.8% accretive to
AFFO accretive in FY21 on a pro forma
basis
Illustrative internalisation impact on IAPF Group (pro forma FY21, $m)
Revenue2,3
Fee income
Property expenses
Net property income
Management fees
Other operating expenses
IAPF I FY21
(A)
IAPF II (B)
Adjustment
Pro Forma
Adjustments
(C)
(D)
IAPF Group pro forma
FY211 (A+B+C+D)
91.3
91.3
5.3
(3.4)
1.9
3.8
(20.5)
(20.5)
70.8
5.3
(3.4)
1.9
74.7
(5.8)
2.5
3.3
(1.7)
(3.5)
(4.8)
(9.9)
Transaction related costs
(7.1)
(0.5)
(7.5)
Finance costs
(8.3)
(0.6)
(0.8)
(9.6)
Fair value adjustments
(6.9)
(6.9)
Net profit
48.1
(5.2)
(1.4)
(0.8)
40.6
Straight-line rental revenue adjustment
(0.5)
(0.5)
Fair value adjustments
6.9
6.9
Amortisation of incentives and leasing
1.6
1.6
fees
Transaction costs
6.7
6.7
Employee retention accrual
0.3
0.5
0.8
FFO
56.2
1.8
(1.4)
(0.4)
56.3
Maintenance capex
(2.1)
(2.1)
Cash incentives and leasing fees
AFFO
(4.1)
2.3
(1.7)
50
1.8
0.9
(0.4)
52.4
FFO per unit (cents)
AFFO per unit (cents)
9.20
8.18
+0.1%
+4.8%
9.21
8.57
1. Assumes implementation occurred on 1 April 2020. 2. Includes straight-line rental revenue adjustment. 3. Subject to the following material assumptions in relation to revenue: (1) Contracted revenue is based on existing lease agreements
including stipulated increases; (2) Of the leases expiring during FY21, renewals or re-leasing assumptions translates to $0.2 million (0.2%) of rental income; and (3) Of the rental income of $90.8 million for the year ended 31 March 2021,
99.8% relates to contracted rental income.
Investec Australia Property Fund | Internalisation and funds management proposal
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