FY19 Q2 - Investis Digital › sites › rdi... · RDI REIT P.L.C. RDI is an income focused UK REIT...
Transcript of FY19 Q2 - Investis Digital › sites › rdi... · RDI REIT P.L.C. RDI is an income focused UK REIT...
RDI REIT P.L.C.RDI is an income focused UK REIT with a diversified portfolio invested principally in the UK. RDI is committed to delivering attractive income led total returns across the real estate cycle. The current strategic initiatives including a more focused allocation of capital and a lower leverage capital structure are targeted at delivering an industry leading and sustainable income return.
www.rdireit.com
FY19 Q2Factsheet
Source: Factset and most recent Company accounts as at 24 May 2019.
Market metrics
£451mMarket
cap
118.6pShare price
190.2pEPRA NAV per share(1)
4.00pInterim dividend
per share
(1) Excluding the Aviva financed UK Shopping Centre portfolio.
Dividend yield on NAV (%) Dividend yield on share price (%) Share price to NAV (%)
Average 4.6%
UK R
EIT
1UK
REI
T 2
UK R
EIT
3RD
I REI
TUK
REI
T 5
UK R
EIT
6UK
REI
T 7
UK R
EIT
8UK
REI
T 9
UK R
EIT
10UK
REI
T 11
UK R
EIT
12UK
REI
T 13
UK R
EIT
14UK
REI
T 15
UK R
EIT
16UK
REI
T 17
UK R
EIT
18UK
REI
T 19
UK R
EIT
20UK
REI
T 21
UK R
EIT
22UK
REI
T 23
UK R
EIT
24UK
REI
T 25
UK R
EIT
26UK
REI
T 27
7.1%Average 5.1%
UK R
EIT
1UK
REI
T 2
RDI R
EIT
UK R
EIT
4UK
REI
T 5
UK R
EIT
6UK
REI
T 7
UK R
EIT
8UK
REI
T 9
UK R
EIT
10UK
REI
T 11
UK R
EIT
12UK
REI
T 13
UK R
EIT
14UK
REI
T 15
UK R
EIT
16UK
REI
T 17
UK R
EIT
18UK
REI
T 19
UK R
EIT
20UK
REI
T 21
UK R
EIT
22UK
REI
T 23
UK R
EIT
24UK
REI
T 25
UK R
EIT
26UK
REI
T 27
9.7%
Average 89.3%
Div. yield on NAV >4.5%
UK R
EIT
1UK
REI
T 2
UK R
EIT
3UK
REI
T 4
UK R
EIT
5UK
REI
T 6
UK R
EIT
7UK
REI
T 8
UK R
EIT
9UK
REI
T 10
UK R
EIT
11UK
REI
T 12
UK R
EIT
13UK
REI
T 14
UK R
EIT
15UK
REI
T 16
UK R
EIT
17UK
REI
T 18
UK R
EIT
19UK
REI
T 20
RDI R
EIT
UK R
EIT
22UK
REI
T 23
UK R
EIT
24UK
REI
T 25
UK R
EIT
26UK
REI
T 27
62.3%
Company compiled consensusAs at 24 May 2019. Two analysts included(1)
FY19 FY20 FY21Underlying EPS (p) 11.85 10.95 11.00Dividend per share (p) 10.30 10.10 10.10
EPRA NAV per share (p) 186.3 181.0 179.4(1) Includes most recent estimates from all analysts who published updated
forecasts following latest results.
HY2019 results highlightsStrong operational performance and asset management• EPRA occupancy remains high at 96.9 per cent (31 August 2018: 97.1 per cent) • 100 lease events completed in the period, 3.4 per cent ahead of ERV • Net rental income increased 0.2 per cent on a like-for-like basis or 1.9 per cent when excluding £0.7 million of hotel refurbishment charges
Financial highlights • Underlying earnings per share of 6.94 pence (5.2 per cent down on H1 2018: 7.32 pence; 1.2 per cent up on H2 2018: 6.86 pence) • First half dividend of 4.0 pence per share. Full year dividends to be weighted towards second half with expectation to revert to regular pay-out ratio
alongside full year results
Robust demand from operational platforms • RBH managed hotels continue to trade in line with expectations; occupancy increased marginally to 83.9 per cent and average room rates and revenue
per available room increased by 1.4 per cent and 2.3 per cent respectively • London serviced offices continue to trade ahead of expectations; occupancy improved to 94.5 per cent, EBITDA per sqft increased by 0.9 per cent over the
period and EBITDA conversion remains high at 63.4 per cent
Focusing capital allocation to sectors backed by occupational demand • £26.3 million acquisition of Southwood Business Park Industrial Estate, Farnborough reflecting a net initial yield of 6.2 per cent• £26.0 million forward funding of two distribution units at Link 9 in Bicester; targeting a yield on cost of 6.5 per cent • Material reduction in retail exposure targeted
Stronger capital structure to be prioritised • Pro-forma LTV of 45.4 per cent excluding the Aviva financed UK Shopping Centre portfolio – consensual sales process agreed • Further reductions in LTV to be delivered through the disposal of the German portfolio, whilst enabling a single geographic focus • Revised medium-term LTV target of 30 - 40 per cent in line with stronger capital structure
Corporate detailsRDI REIT P.L.C. Primary listing LSE (Share code: RDI)Secondary listing JSE (Share code: RPL)ISIN IM00BH3JLY32Index inclusion EPRA & GPR
Contact details and further informationWebsite www.rdireit.comTwitter @RDIREITLinkedIn RDI REITEmail [email protected]
AddressRDI REIT P.L.C.33 Regent StreetLondonSW1Y 4NB
www.rdireit.com
More focused capital allocationIncluding further material reduction in retail
Strategic disposals
Retail parks & other
15%London servicedoffices
10%London offices
Hotels
Offices
33%
22%20%
62% in Greater London
Structu
ral c
hang
e an
d st
rong
dem
ogra
phic
s
Industrial & distribution
£1.1bn market valueFollowing strategic disposals and assuming no re-investment
(1) Assumes interest saving of 3.5% on debt repaid.(2) Indicative underlying EPS and leverage, assuming share buy-back at £1.50.
Retail
21%
Hotels
Offices
Industrial & distribution
23%
43%13%
UK (28%)
Germany (15%)
• 5.9% Topped up NIY• 6.2% Reversionary yield
£1.6bn market value
• 5.5% Topped up NIY• 5.9% Reversionary yield• 100% UK focused • 79% in Greater London and South East
Aviva (£177.2m market value)
• 100% retail
• Highly leveraged
• Negative reversion & outlook
Germany (£244.2m market value)
• 100% retail
• Above average leverage
• Low growth outlook
Mature (£88.2m market value)
• £29.0m retail and £59.2m regional offices
• Weaker demographics
• Mature, secondary assets
Delivering sustainable income and dividend returnsStrategic disposals to result in material reduction in leverage and retail exposure
Strategic disposals
HY19 (annualised)
13.9
30%
40%(2)
35%(2)(1.9)
Aviva
12.0
Group ex Aviva
(2.1)
Germany
(1.2)
Matureassets
1.3
Interest costreduction(1)
0.5
Overheadreduction
10.5
c.12.0(2)
c.11.2(2)
Base andupside
Indicative annualised underlying earnings per share (p)
48.5% 45.4% LTV (UK REIT ave. 29%)
43% 36% Retail exposure c.22%
1.4% 0.8% Debenhams (% of gross rental income) nil
6.8% 6.3% Annualised EPS as a % of NAV (UK REIT ave. 4.0%)
30% – 40%
5.5% – 5.9%
LTV