Asset Plus Limited Analysis

Overview

NPT Limited listed on 4th March 2011 as the result of the corporatisation of previously listed The National Property Trust ("NAP").

The National Property Trust was formed in April 1994 to own and manage a property portfolio of commercial and industrial buildings in major NZ cities. A public issue of 10m units at 90c in November 1996 facilitated listing on the stock exchange, and provided funds to acquire a number of properties.

Performance

The following information was extracted from Asset Plus Limited's full year results, released on 28 May 2024:

• Total loss after tax of $5.30 million, against a $13.05 million loss in the previous year primarily driven by downward valuations.
• Sale of Stoddard Road for $36.75 million with funds applied as a debt repayment.-• Munroe Lane development complete. Leasing the

balance of vacant space remains the key priority.

• 35 Graham Street settlement is scheduled to occur on 29 November 2024.

Asset Plus Limited (NZX: APL) announces its financial result for the year ended 31 March 2024, reporting a total loss of $5.30 million, against a $13.05 million loss in the previous year. Lower revaluation losses were recorded relative to last year which was the primary driver of the reduced loss.

Adjusted Funds from Operations (AFFO (1)) represented a loss of $0.67 million, down from a $0.28 million loss in the prior period. The loss is driven by recent divestments and unrecovered OPEX at 35 Graham Street, offset against the commencement of Munroe Lane rent.

Mark Francis, CEO Centuria NZ, commented “The result for the year ended 31 March 2024 reflects a reduced portfolio due to recent divestments to prudently manage the balance sheet in the current high interest environment. The Munroe Lane lease to Auckland Council has now commenced which is a significant achievement and milestone for the company after the development broke ground in October 2020.

The leasing of the balance of the Munroe Lane development remains as the key priority but is challenging in the current environment.”

Key points:

• Portfolio occupancy of 41%, up from 37% in the previous year due to Munroe Lane completion offset against Stoddard Road sale.
• WALE of 5.9 years up from 1.2 years in the previous year due to commencement of the 15-year Auckland Council lease at Munroe

Lane.

• A reduction in the fair value of investment property of $4.9 million or a 2.6% decrease.
• The portfolio value now stands at $180.8 million of which $64.7 million of property is held for sale and is unconditionally sold.
• Loan-to-value ratio (LVR) of 18.2% based on current fair values, down from 31.5% in the previous year due to the Stoddard Road

divestment.

• Debt was drawn at $33 million at balance date ($71.4 million in the prior year).
• Net tangible assets (NTA) of 38.9 cents per share (cps), down from 40.4 cps in the previous year.
• Net revenues from the property portfolio increased by $0.18 million.