Financial Data and Key Metrics Changes - Comprehensive income after tax improved to $3.1 million from a loss of $30 million last year, primarily due to a lower fair value loss [12] - Funds from operations (FFO) increased by 6.7% to $161.4 million, with underlying FFO reflecting a rise of 3.3% to $0.54 per share [15][16] - The weighted average cost of debt at year-end was 5.2%, with interest coverage for the period at 2x [20] Business Line Data and Key Metrics Changes - The Auckland office portfolio delivered like-for-like rental growth of 2.5%, while Wellington generated strong growth of around 6% [13] - Commercial Bay Retail generated an additional $1.3 million in income, reflecting good sales and improved occupancy levels [14] - The investment portfolio's occupancy increased to 97%, with approximately 12,000 square meters leased in the second half [33] Market Data and Key Metrics Changes - The Auckland premium office market remains strong with a vacancy rate of 3.3%, while secondary markets are experiencing increased vacancy [36] - The retail center at Commercial Bay saw FFO up 8.3% and occupancy remaining at 97% [39] - The Wellington market remains subdued, primarily influenced by central government expenditure [38] Company Strategy and Development Direction - The company is focused on capital management and has launched a process to seek a capital partner for 50% of PwC Tower [6] - The development pipeline currently sits at $3.7 billion, with a focus on residential and student accommodation projects [44] - The company aims to grow its capital partnerships from $1.6 billion to $4-5 billion over the medium term [32] Management's Comments on Operating Environment and Future Outlook - The economic environment has been sluggish, particularly in Auckland and Wellington, but growth opportunities are beginning to emerge [6][7] - Management expects the broader economy to improve in the latter part of the year and into 2026 [8] - The company remains optimistic about capitalizing on opportunities in an improving economy [22] Other Important Information - The company has updated its dividend policy to a payout range of 80% to 95% of funds from operations, reflecting a more flexible approach [21] - The InterContinental Hotel sale resulted in a premium to book value, indicating strong pricing achieved [17] Q&A Session Summary Question: Update on the PwC Tower process and potential standalone partnership - The process is in early stages with encouraging engagement from multiple parties, reflecting a positive investment case for premium office [47][48] Question: Likelihood of starting enabling works in Downtown in 2026 - The company anticipates commencing enabling works next year [53] Question: Clarification on one-off items affecting FFO - The adjustments include closure costs related to a hospitality venue and swap closeouts due to capital structure changes [54] Question: Guidance for FY 2026 and tax benefit adjustments - A small tax expense is expected, with conservative estimates around 30-40 basis points [56][57] Question: Update on inquiries for larger vacancies in the office portfolio - Advanced negotiations are ongoing for significant vacancies, with positive demand trends noted [78][80]

Financial Data and Key Metrics Changes - Comprehensive income after tax improved to $31 million from a loss of $30 million last year, primarily due to a lower fair value loss [10] - Funds from operations (FFO) increased by 6.7% to $161.4 million, with underlying FFO reflecting a 3.3% increase to $0.54 per share [14][19] - The weighted average cost of debt at year-end was 5.2%, with interest coverage for the period at 2x [17] Business Line Data and Key Metrics Changes - The Auckland office portfolio delivered like-for-like rental growth of 2.5%, while Wellington generated strong growth of around 6% [11] - Commercial Bay Retail saw FFO increase by 8.3%, with occupancy remaining at 97% and specialty sales over $12,000 per square meter [36] - The investment portfolio's occupancy increased to 97%, with approximately 19,000 square meters leased over the financial year [30] Market Data and Key Metrics Changes - The Auckland premium office market remains strong with a vacancy rate of 3.3%, while secondary markets are experiencing increased vacancy [32] - The Wellington market remains subdued, primarily influenced by central government expenditure [35] - The retail sector is showing signs of recovery with improved trading conditions and anticipated visitor growth [36] Company Strategy and Development Direction - The company is focused on capital management and has launched a process to seek a capital partner for 50% of PwC Tower [5] - The development pipeline is valued at $3.7 billion, with a commitment to student accommodation and residential projects [40] - The company aims to grow its capital partnerships from $1.6 billion to $4-5 billion over the medium term [29] Management's Comments on Operating Environment and Future Outlook - The economic environment is sluggish, particularly in Auckland and Wellington, but growth opportunities are emerging [5][6] - Management expects the broader economy to improve in the latter part of the year and into 2026, supported by monetary policy easing [6] - The company remains optimistic about capitalizing on opportunities in an improving economy [41] Other Important Information - The company has updated its dividend policy to a payout range of 80% to 95% of funds from operations, reflecting a more flexible approach [18] - The InterContinental Hotel sale achieved a premium to book value, indicating strong market interest [14] Q&A Session Summary Question: Update on PwC Tower process and potential new partnership - The process is in early stages with encouraging engagement from multiple parties, reflecting strong demand for premium office space [44][45] Question: Likelihood of starting enabling works in 2026 - The company anticipates commencing enabling works next year [50] Question: Clarification on one-off items affecting FFO - One-off items include closure costs related to a hospitality venue and swap closeouts due to capital structure changes [51] Question: Guidance on FY 2026 tax benefit adjustment - A small tax expense is expected, with estimates around 30-40 basis points [54] Question: Capital partnering for 256 Queen student accommodation - Strong interest from both domestic and offshore investors, with options for university or independent operator involvement [80]

Financial Performance - Investment portfolio Funds From Operations (FFO) increased by 3.7% to $150.3 million[9, 49] - Operating Profit before indirect expenses and income tax increased by 1.2% to $152.3 million[9, 48, 49] - Adjusted Funds From Operations (AFFO) was 6.54 cents per security (cps)[9] - Net tangible assets (NTA) per security decreased by $0.04 to $1.21[48] Portfolio & Occupancy - Portfolio occupancy was 97%[7, 39, 123] - Weighted Average Lease Term (WALT) was 6.0 years[9, 39, 123] - Commercial Bay retail FFO increased by 8.3%[9, 49] and MAT increased by 3.7%[9, 123] Capital Management & Investment - Strategic exit of the InterContinental Auckland hotel for $180 million[9] - Repaid $165 million of maturing retail bonds and USPP notes[9] - New $75 million five-year wholesale bond issued[9] - Capital partnerships totalling $1.6 billion on completion value[86]

Transaction Overview - Unite Students is acquiring Empiric Student Property through a cash and share offer of 94.2 pence per Empiric share[6] - The offer consists of 0.085 new Unite shares and 32 pence in cash for each Empiric share[6] - The combined portfolio will have a value of £7.4 billion with 75,000 beds[6] - Empiric shareholders will own 10% of the enlarged Unite Group upon completion[34] Financial Benefits and Synergies - The acquisition is expected to be accretive to earnings and shareholder returns from the second year onwards[6] - £13.7 million in cost synergies are expected to be unlocked through Unite's operating platform[6] - The acquisition is expected to deliver a low double-digit unlevered IRR ahead of Unite's cost of capital, supporting total accounting returns of approximately 10% per annum[6] - Approximately 55% of the £13.7 million annual run-rate benefit is expected to be realized in the first full year following completion[21, 80] Portfolio and Market Expansion - The combined portfolio will include 75,000 beds across 30 cities[11] - The acquisition allows Unite to enter two new Russell Group cities: Exeter and York[11] - The acquisition provides immediate scale in the Returner market, acquiring approximately 20% below replacement cost[18] Financial Position - Pro forma loan to value (LTV) is expected to be 29%[23] - Empiric's H1 2025 EPRA earnings were £14.3 million[26]