1 00:00:03,800 --> 00:00:07,200 Speaker 1: Currakoto. Welcome to Shared Lunch. I'm Garth Bray and we're 2 00:00:07,240 --> 00:00:10,480 Speaker 1: on location with the listed landlord that rents to some 3 00:00:10,560 --> 00:00:14,520 Speaker 1: of New Zealand's big companies property for industry, builds, owns 4 00:00:14,560 --> 00:00:18,640 Speaker 1: and manages two billion dollars worth of factory and warehouse 5 00:00:18,640 --> 00:00:22,440 Speaker 1: space to some big global names, which also gives investors 6 00:00:22,520 --> 00:00:25,959 Speaker 1: exposure to property assets without necessarily needing to talk to 7 00:00:26,000 --> 00:00:29,520 Speaker 1: a mortgage broker. CEO Simon Woodhams has invited us here 8 00:00:29,560 --> 00:00:32,760 Speaker 1: to East Tamaki to show us two stages of development 9 00:00:33,080 --> 00:00:37,040 Speaker 1: under construction and already rented, and to share his thoughts 10 00:00:37,080 --> 00:00:40,400 Speaker 1: on property industry in the year to come. Before we 11 00:00:40,400 --> 00:00:44,240 Speaker 1: hear that some important information you should always consider. 12 00:00:44,600 --> 00:00:47,199 Speaker 2: Investing involves the risk you might lose the money you 13 00:00:47,240 --> 00:00:50,559 Speaker 2: start with. We recommend talking to a licensed financial advisor. 14 00:00:51,280 --> 00:00:55,080 Speaker 2: We also recommend reading product disclosure documents before deciding to invest. 15 00:00:55,360 --> 00:00:57,720 Speaker 2: Everything you're about to see and here is current at 16 00:00:57,760 --> 00:00:58,560 Speaker 2: the time of recording. 17 00:00:58,640 --> 00:01:00,680 Speaker 1: Well, Simon, thanks for inviting us here. I mean, as 18 00:01:00,720 --> 00:01:02,320 Speaker 1: open homes go, this is pretty extra. 19 00:01:03,160 --> 00:01:05,160 Speaker 3: Yeah, it's a pretty big open home, isn't it twenty 20 00:01:05,160 --> 00:01:07,920 Speaker 3: five thousand square meters So no, no, this is the 21 00:01:08,000 --> 00:01:10,720 Speaker 3: latest facility that we've completed. So we're very very proud 22 00:01:10,720 --> 00:01:12,720 Speaker 3: of it. So welcome, great to have you guys here. 23 00:01:12,920 --> 00:01:17,760 Speaker 1: Sure property, I guess as an investment class, it seems 24 00:01:17,800 --> 00:01:20,720 Speaker 1: like it's something that an investor can kind of touch, feel, 25 00:01:20,800 --> 00:01:23,240 Speaker 1: maybe understand a little bit more. Is that fair? 26 00:01:24,120 --> 00:01:26,600 Speaker 3: Yes, yep, definitely. So we've got four and a half 27 00:01:26,640 --> 00:01:29,400 Speaker 3: thousand retail investors, and I think for a lot of them, 28 00:01:29,480 --> 00:01:31,880 Speaker 3: particularly the ones that have been with us for twenty 29 00:01:31,880 --> 00:01:34,120 Speaker 3: five years. Plus the fact that it's bricks and mortars, 30 00:01:34,160 --> 00:01:36,240 Speaker 3: there's actually a physical aspect to it, is a really 31 00:01:36,280 --> 00:01:40,160 Speaker 3: important aspect to why they invest with us. It's certainly 32 00:01:40,160 --> 00:01:42,640 Speaker 3: why myself and a lot of the team have been 33 00:01:42,640 --> 00:01:44,800 Speaker 3: involved for a long time. We'd like to be able 34 00:01:44,840 --> 00:01:48,200 Speaker 3: to create things and physically touch it. So no, no, 35 00:01:48,240 --> 00:01:50,320 Speaker 3: I think that's probably one of the more important aspects 36 00:01:50,320 --> 00:01:51,480 Speaker 3: of PFI. 37 00:01:52,360 --> 00:01:55,000 Speaker 1: So where are we right now and who's moved in? 38 00:01:55,040 --> 00:01:55,720 Speaker 1: Who's moving in? 39 00:01:55,920 --> 00:01:59,560 Speaker 3: So we're at what we call seventy eight Springs Road. 40 00:01:59,800 --> 00:02:02,800 Speaker 3: This is the Fisher and Pickle Appliants site. This is 41 00:02:02,840 --> 00:02:05,080 Speaker 3: a ten and a half hectare site. So you think 42 00:02:05,080 --> 00:02:08,680 Speaker 3: of rugby fields as an analogy ten rugby fields. We 43 00:02:08,720 --> 00:02:11,519 Speaker 3: brought the site fifteen years ago from Fish and Pikele 44 00:02:11,960 --> 00:02:14,120 Speaker 3: and what they call a sale and lease back transaction, 45 00:02:14,280 --> 00:02:15,880 Speaker 3: so we brought the whole site off it and they 46 00:02:15,960 --> 00:02:18,280 Speaker 3: rode a fifteen year lease to stay on the site 47 00:02:18,320 --> 00:02:21,840 Speaker 3: and rent the buildings that we had. Originally they used 48 00:02:21,880 --> 00:02:25,600 Speaker 3: to manufacture their appliance as I think refrigerators, washing machines, 49 00:02:25,680 --> 00:02:30,280 Speaker 3: drives on the site. About thirteen years ago higher the 50 00:02:31,040 --> 00:02:34,240 Speaker 3: Chinese manufacturer brought Fish from Pikele and they went to 51 00:02:34,280 --> 00:02:37,160 Speaker 3: a slightly different model where they manufacture offshore and they 52 00:02:37,200 --> 00:02:40,720 Speaker 3: were using the buildings here to distribute, so'd be built 53 00:02:40,760 --> 00:02:43,840 Speaker 3: in Mexico or Thailand, arrive here in Auckland, be stored 54 00:02:43,840 --> 00:02:46,440 Speaker 3: here and then shot out to the Nollemans of the world. 55 00:02:47,880 --> 00:02:52,360 Speaker 3: About four years ago we started talking to the Fisher 56 00:02:52,400 --> 00:02:55,680 Speaker 3: and Pikele appliants as exec team and with that change 57 00:02:55,680 --> 00:02:57,600 Speaker 3: in business model they had they needed what we call 58 00:02:57,639 --> 00:03:01,160 Speaker 3: a distribution center a DC. Yeah, we got into building this. 59 00:03:01,400 --> 00:03:03,280 Speaker 3: So this is a state of the art, twenty five 60 00:03:03,320 --> 00:03:07,720 Speaker 3: thousand square meter DC center. It's sustainably it's five Green 61 00:03:07,760 --> 00:03:10,320 Speaker 3: star rated, so it's got all the boughs and whistles 62 00:03:10,360 --> 00:03:15,480 Speaker 3: in terms of solar rainwater harvesting electric charges. You can 63 00:03:15,520 --> 00:03:17,720 Speaker 3: see out there, and they've moved in and committed to 64 00:03:17,720 --> 00:03:21,280 Speaker 3: another fifteen years. So for us, it's an ongoing thirty 65 00:03:21,320 --> 00:03:22,800 Speaker 3: year commitment, which is pretty pleasing. 66 00:03:23,680 --> 00:03:25,800 Speaker 1: That thirty year commitment. Is that a typical sort of 67 00:03:25,800 --> 00:03:28,639 Speaker 1: investment horizon for p FI or is that a bit longer? 68 00:03:29,280 --> 00:03:33,120 Speaker 3: So our portfolio, we've got ninety properties, predominantly here in Auckland. 69 00:03:33,360 --> 00:03:36,120 Speaker 3: It's fair led it just over two billion dollars. Our 70 00:03:36,200 --> 00:03:39,680 Speaker 3: average weighted least term is five and a half years. 71 00:03:40,200 --> 00:03:43,280 Speaker 3: When we build new like this, it's a big commitment 72 00:03:43,320 --> 00:03:45,280 Speaker 3: both for ours olves but also for the tenant, so 73 00:03:45,320 --> 00:03:47,480 Speaker 3: you tend to get a longer least term up front. 74 00:03:49,160 --> 00:03:52,000 Speaker 3: Other recent developments have been twelve and fifteen years, so 75 00:03:52,080 --> 00:03:54,160 Speaker 3: it's pretty common to get ten years plus on that 76 00:03:54,200 --> 00:03:58,600 Speaker 3: first initial commitment. So yeah, typical for the new builds. 77 00:03:58,560 --> 00:04:00,920 Speaker 1: But you are potentially now looking at stuff that you're 78 00:04:00,960 --> 00:04:04,680 Speaker 1: not going to actually get to the end of its 79 00:04:04,720 --> 00:04:06,400 Speaker 1: life cycle or get to the end of its tendency 80 00:04:07,120 --> 00:04:09,360 Speaker 1: until the middle of the next decade kind of thing. 81 00:04:09,520 --> 00:04:11,760 Speaker 3: Yeah. Yeah, Well, we'd like to think this building's fit 82 00:04:11,800 --> 00:04:14,880 Speaker 3: for purpose for the next fifty to sixty years. You 83 00:04:14,920 --> 00:04:18,000 Speaker 3: don't want to be knocking buildings down in rebuilding them 84 00:04:18,000 --> 00:04:21,200 Speaker 3: if they're perfectly good. So the design features that have 85 00:04:21,279 --> 00:04:23,720 Speaker 3: gone in here is with the intention that needs to 86 00:04:23,760 --> 00:04:26,840 Speaker 3: be fifty years plus. So yeah, we're a long term company. 87 00:04:26,839 --> 00:04:29,040 Speaker 3: We've been around for thirty years. We celebrated thirty years, 88 00:04:29,120 --> 00:04:31,920 Speaker 3: been listed last year on the NXX. So's so many 89 00:04:31,960 --> 00:04:34,560 Speaker 3: companies that can say that, and so every sort of 90 00:04:34,560 --> 00:04:37,719 Speaker 3: decision that we make has that long term sort of 91 00:04:37,920 --> 00:04:40,200 Speaker 3: view to it, which is again part of the attraction 92 00:04:40,240 --> 00:04:40,839 Speaker 3: of investing in. 93 00:04:40,880 --> 00:04:44,520 Speaker 1: Property and pair five. So you're not an riit. 94 00:04:44,360 --> 00:04:47,679 Speaker 3: No, but it's a very common when they talk about rets, 95 00:04:47,960 --> 00:04:51,120 Speaker 3: they're talking about listed property vehicles. So some people have 96 00:04:51,120 --> 00:04:54,200 Speaker 3: different structures. Ours is a simple limited lability company. 97 00:04:54,920 --> 00:04:58,880 Speaker 1: How does that fundamentally differ from someone taking a direct investment, 98 00:04:58,920 --> 00:05:02,520 Speaker 1: becoming a landlord themsel investing in a think scale. 99 00:05:02,680 --> 00:05:05,760 Speaker 3: Really, you know a lot of your investors it shares 100 00:05:05,839 --> 00:05:08,920 Speaker 3: is will have a few hundred dollars to invest. The 101 00:05:09,040 --> 00:05:12,680 Speaker 3: valuation on this building on completion is over one hundred 102 00:05:12,720 --> 00:05:16,480 Speaker 3: million dollars. So as a landlord, very few people have 103 00:05:16,520 --> 00:05:20,279 Speaker 3: access to that type of product. And even what we 104 00:05:20,320 --> 00:05:23,480 Speaker 3: would consider a smaller asset. Our average asset size is 105 00:05:23,480 --> 00:05:26,440 Speaker 3: about twenty million dollars. So again, the type of investor 106 00:05:26,480 --> 00:05:29,479 Speaker 3: that can take that on personally is a very small 107 00:05:29,520 --> 00:05:32,800 Speaker 3: part of the population. So by having a limited liability 108 00:05:32,800 --> 00:05:36,200 Speaker 3: company with a portfolio of assets, it allows the investor 109 00:05:36,200 --> 00:05:38,720 Speaker 3: to own a share in a wide variety of buildings 110 00:05:38,760 --> 00:05:42,039 Speaker 3: and tenants. We've got onels one hundred and thirty different tenants. 111 00:05:43,480 --> 00:05:46,040 Speaker 3: A lot of them are government tenants or listed companies 112 00:05:46,160 --> 00:05:49,800 Speaker 3: or international companies that sit within the portfolio. So it's 113 00:05:49,800 --> 00:05:53,559 Speaker 3: a very low risk secure investment, is how we would 114 00:05:53,600 --> 00:05:55,279 Speaker 3: describe ourselves. 115 00:05:54,760 --> 00:05:58,039 Speaker 1: Because you're diversified across not just one site, but across 116 00:05:58,120 --> 00:06:02,200 Speaker 1: different different tenants, different cities. We're around the company. 117 00:06:01,920 --> 00:06:04,360 Speaker 3: Yep, so eighty five percent here in Auckland, but we've 118 00:06:04,360 --> 00:06:09,600 Speaker 3: got property in Towering Napier, christ Church, Willington, New Plymouth, 119 00:06:09,640 --> 00:06:11,440 Speaker 3: so yeah, it is the firstified by that, but eighty 120 00:06:11,480 --> 00:06:14,719 Speaker 3: five percent based here in Auckland, which is the biggest, deepest, 121 00:06:14,720 --> 00:06:17,640 Speaker 3: strongest market now of you, so you're pretty comfortable with that. 122 00:06:17,839 --> 00:06:19,680 Speaker 3: But I'll get onto your take on that shortly. 123 00:06:19,720 --> 00:06:21,560 Speaker 1: But in terms of the investment, I suppose a little 124 00:06:21,560 --> 00:06:25,000 Speaker 1: more liquid than literally owning a share or outright in 125 00:06:25,080 --> 00:06:27,000 Speaker 1: a property too, yeah, exactly. 126 00:06:27,040 --> 00:06:29,440 Speaker 3: And by being listed you can trade your share on 127 00:06:29,440 --> 00:06:32,000 Speaker 3: a daily basis, you can price it on a daily basis. 128 00:06:32,080 --> 00:06:34,520 Speaker 3: So a lot of the property investments you see out there. 129 00:06:34,680 --> 00:06:37,360 Speaker 3: If you want to buy a building by yourself and 130 00:06:37,400 --> 00:06:39,320 Speaker 3: if you need to realize money, it takes a while 131 00:06:39,360 --> 00:06:42,280 Speaker 3: to advertise the building, sell the building, settle the building. 132 00:06:43,120 --> 00:06:46,080 Speaker 3: You've got property syndication which is a next step down 133 00:06:46,080 --> 00:06:48,440 Speaker 3: where you buy one building with a group of investors, 134 00:06:48,480 --> 00:06:50,400 Speaker 3: but same thing. If you want to get your money 135 00:06:50,400 --> 00:06:52,080 Speaker 3: out quickly, it can take a little bit of time. 136 00:06:52,080 --> 00:06:55,200 Speaker 3: Whereas you know, the New Zealand Stock Shange trades five 137 00:06:55,279 --> 00:06:55,800 Speaker 3: days a week. 138 00:06:55,880 --> 00:06:59,039 Speaker 1: You've got some experience in that unlisted property sector as well, 139 00:06:59,040 --> 00:07:03,560 Speaker 1: haven't you. What are the advantages I suppose compared to 140 00:07:03,600 --> 00:07:06,120 Speaker 1: the costs and compliance of floating. 141 00:07:06,360 --> 00:07:08,920 Speaker 3: That's probably touching a little bit on the history of PFI. 142 00:07:09,120 --> 00:07:12,480 Speaker 3: So PFI was originally set up in the early nineties 143 00:07:13,400 --> 00:07:17,280 Speaker 3: by the original guy, Malcolm McDougall, who sold the management 144 00:07:17,440 --> 00:07:19,560 Speaker 3: business that was running the portfolio at the time to 145 00:07:19,640 --> 00:07:25,240 Speaker 3: amp Capital in Australia in nineteen ninety seven, I think 146 00:07:25,240 --> 00:07:28,800 Speaker 3: it was and Malcolm then moved to Auckland he was 147 00:07:28,800 --> 00:07:31,160 Speaker 3: based in Willington and set up another company called Direct 148 00:07:31,200 --> 00:07:34,640 Speaker 3: Property Fund and that was an unlisted fund where they 149 00:07:34,640 --> 00:07:38,600 Speaker 3: had a series of investors who built up a portfolio 150 00:07:38,600 --> 00:07:40,520 Speaker 3: of assets and that's where I got involved. So I 151 00:07:40,560 --> 00:07:43,520 Speaker 3: turned up in two thousand and three worked for Malcolm 152 00:07:43,600 --> 00:07:46,280 Speaker 3: another guy, Greg Reedy, and we grew that company to 153 00:07:46,320 --> 00:07:50,200 Speaker 3: about four hundred million dollars. And then in late two 154 00:07:50,240 --> 00:07:53,520 Speaker 3: thousand and must have been twenty ten, Greg jumped on 155 00:07:53,520 --> 00:07:56,040 Speaker 3: a plane over to Australia and convinced AMP Capital sew 156 00:07:56,120 --> 00:07:59,760 Speaker 3: the management contract for PFI to our group of investors. 157 00:08:00,040 --> 00:08:02,480 Speaker 3: For a couple of years we ran an unlisted fund, 158 00:08:02,640 --> 00:08:07,320 Speaker 3: which has benefits in that there's not as much compliance, 159 00:08:07,360 --> 00:08:10,800 Speaker 3: there's no listing regulations, et cetera. And we ran PFI 160 00:08:10,880 --> 00:08:12,720 Speaker 3: as well, side by side, and then we merged the 161 00:08:12,760 --> 00:08:17,160 Speaker 3: companies together in twenty and thirteen and that created this 162 00:08:17,280 --> 00:08:19,280 Speaker 3: sort of an an entity of seven hundred and fifty 163 00:08:19,320 --> 00:08:23,480 Speaker 3: million dollars which we've grown reasonably aggressively over the last 164 00:08:23,480 --> 00:08:26,240 Speaker 3: decade through to where we are today two point one 165 00:08:26,280 --> 00:08:29,280 Speaker 3: billion dollars. And it's pleasing to say we regularly get 166 00:08:29,760 --> 00:08:33,200 Speaker 3: emails and people turning up to the AGM of investors 167 00:08:33,200 --> 00:08:35,400 Speaker 3: and PFI have been there for the full thirty years. 168 00:08:35,480 --> 00:08:36,240 Speaker 3: It's incredible. 169 00:08:36,360 --> 00:08:38,480 Speaker 1: You sound like you understand them pretty well. And what 170 00:08:38,559 --> 00:08:41,240 Speaker 1: it is that those PFI investors want sort a more 171 00:08:41,240 --> 00:08:43,439 Speaker 1: conservative proposition than a growth rough a balanced kind of 172 00:08:43,480 --> 00:08:47,079 Speaker 1: a thing. Is its chasing the income from the dividend 173 00:08:47,080 --> 00:08:48,600 Speaker 1: stream rather than the capital growth. 174 00:08:48,679 --> 00:08:51,560 Speaker 3: Yeah, we call ourselves a dividend stock, so a dividend company, 175 00:08:51,640 --> 00:08:57,760 Speaker 3: so people tend to invest into both unlisted properly enlisted property, 176 00:08:57,840 --> 00:09:01,319 Speaker 3: So PFI for a regular dividend, So we pay a 177 00:09:01,400 --> 00:09:04,679 Speaker 3: quarterly dividend and have done for thirty years. We've managed 178 00:09:04,720 --> 00:09:06,920 Speaker 3: to grow that dividend over that period of time, so 179 00:09:07,400 --> 00:09:09,560 Speaker 3: currently our dividends about four four and a half percent 180 00:09:09,559 --> 00:09:11,440 Speaker 3: per andum. And then on top of that, we've had 181 00:09:11,520 --> 00:09:14,240 Speaker 3: capital growth throughout the period as well. So first and 182 00:09:14,280 --> 00:09:17,960 Speaker 3: foremost we say invest for the dividends and then secondly 183 00:09:17,960 --> 00:09:20,360 Speaker 3: the capital growth is the is the icon on top. 184 00:09:20,440 --> 00:09:22,439 Speaker 3: But if you look at over the thirty years, we've 185 00:09:22,440 --> 00:09:24,880 Speaker 3: done total returns perum of around nine nine and a 186 00:09:24,920 --> 00:09:28,000 Speaker 3: half percent, so it's a it's been pretty good ride 187 00:09:28,360 --> 00:09:29,760 Speaker 3: the last three or four years has been a bit 188 00:09:29,800 --> 00:09:33,200 Speaker 3: tougher as interest rates have gone the way they have grown, 189 00:09:34,880 --> 00:09:37,080 Speaker 3: but you know, in terms of valuations, et cetera, that 190 00:09:37,120 --> 00:09:39,280 Speaker 3: we've seen them stabilize in the last six to twelve 191 00:09:39,360 --> 00:09:42,920 Speaker 3: months and hopefully in the near future will start to 192 00:09:42,960 --> 00:09:44,400 Speaker 3: grow away. It's the plan. 193 00:09:44,640 --> 00:09:46,640 Speaker 1: You're not the only players in this game, now do 194 00:09:46,760 --> 00:09:48,400 Speaker 1: you How do you compare against the competition? 195 00:09:48,440 --> 00:09:50,480 Speaker 3: How do you rate yourselves? Yeah, so there's probably I 196 00:09:50,480 --> 00:09:53,160 Speaker 3: think there's about ten listed entities on the x X 197 00:09:54,080 --> 00:09:57,439 Speaker 3: who we compare ourselves to. I guess one of the 198 00:09:57,480 --> 00:10:00,200 Speaker 3: key strategic difference with PFI is we focus solely on 199 00:10:00,280 --> 00:10:04,160 Speaker 3: industrial property. There's another competitor out there who do the 200 00:10:04,160 --> 00:10:08,640 Speaker 3: same and do it very well. Industrial property, particularly in 201 00:10:08,679 --> 00:10:11,000 Speaker 3: the last five to ten years, has been the number 202 00:10:11,040 --> 00:10:13,800 Speaker 3: one performing asset class, and by asset class, the other 203 00:10:13,840 --> 00:10:17,559 Speaker 3: eset classes are obviously there's residential, there's commercial so you 204 00:10:17,640 --> 00:10:22,679 Speaker 3: think office towers, there's shopping centers, and then there's health assets, 205 00:10:22,760 --> 00:10:26,480 Speaker 3: so they're the mainseic classes in New Zealand, and industrial property, 206 00:10:26,480 --> 00:10:29,160 Speaker 3: both on a rental growth and on a capital growth 207 00:10:29,200 --> 00:10:31,320 Speaker 3: point of view, in the last decade has been number 208 00:10:31,360 --> 00:10:34,600 Speaker 3: one by a long way, so you've picked the right horse. 209 00:10:34,800 --> 00:10:36,760 Speaker 3: So there's some themes there that have played into our 210 00:10:36,880 --> 00:10:40,040 Speaker 3: particularly in and around the COVID area. So if you 211 00:10:40,040 --> 00:10:43,040 Speaker 3: look at e commerce is a big one. So you know, 212 00:10:43,840 --> 00:10:48,000 Speaker 3: people like retailers are moving away from having that store 213 00:10:48,040 --> 00:10:51,280 Speaker 3: on Broadway and New Market to delivering direct from the warehouse. 214 00:10:51,559 --> 00:10:54,080 Speaker 3: It has been massive demand growth for warehouses like the 215 00:10:54,080 --> 00:10:57,240 Speaker 3: one we're sitting in here now, direct to consumer DC 216 00:10:58,280 --> 00:11:02,600 Speaker 3: discretion centers. So that's played to our into our hands. 217 00:11:02,800 --> 00:11:04,960 Speaker 1: Because at the moment, I would have thought most bricks 218 00:11:05,000 --> 00:11:08,200 Speaker 1: and mortar investment into any other kind of space if 219 00:11:08,200 --> 00:11:10,480 Speaker 1: it's office space, you see people being sort of begged 220 00:11:10,480 --> 00:11:12,720 Speaker 1: to return to the office. Yeah, you must be looking 221 00:11:12,720 --> 00:11:15,800 Speaker 1: at that going cracky, glad we're not too much or 222 00:11:15,840 --> 00:11:16,120 Speaker 1: at all. 223 00:11:16,360 --> 00:11:19,360 Speaker 3: Yeah, yeah, we're not in that at all, which we're 224 00:11:19,360 --> 00:11:21,800 Speaker 3: happy about that. I think what you've seen in the 225 00:11:21,840 --> 00:11:24,199 Speaker 3: office sector is you're seen with the work from home 226 00:11:24,320 --> 00:11:27,559 Speaker 3: thematic that there's no doubt that that's my view, that 227 00:11:27,600 --> 00:11:31,360 Speaker 3: won't change. But the prime stuff, the A grade officers 228 00:11:31,360 --> 00:11:34,720 Speaker 3: are doing very very well because people have to attract 229 00:11:34,720 --> 00:11:36,680 Speaker 3: their staff back into the office. But the B and 230 00:11:36,720 --> 00:11:40,319 Speaker 3: C grade stuff that the city fringe stuff that's struggling. 231 00:11:40,640 --> 00:11:42,680 Speaker 3: You know, the stats will tell you that. So again, 232 00:11:42,679 --> 00:11:45,880 Speaker 3: work from home. That's a thematic that's played into It's 233 00:11:45,880 --> 00:11:48,080 Speaker 3: pretty hard to run a warehouse from home. You need 234 00:11:48,120 --> 00:11:50,040 Speaker 3: people in the office or in the warehouse. 235 00:11:50,120 --> 00:11:52,800 Speaker 1: So the more online we are and the more we 236 00:11:52,840 --> 00:11:55,280 Speaker 1: are moving away from traditional sort of retail and stuff, 237 00:11:55,600 --> 00:11:57,080 Speaker 1: the better you'd say your visit. 238 00:11:57,280 --> 00:12:01,800 Speaker 3: It's definitely a thematic that supports us. Your original question was, 239 00:12:01,880 --> 00:12:04,360 Speaker 3: you know, how do we differentiate ourselves by being solely 240 00:12:04,400 --> 00:12:08,360 Speaker 3: focused on industrial. That has played into our hands the 241 00:12:08,400 --> 00:12:10,800 Speaker 3: team that we've built over the last decade. You know, 242 00:12:10,800 --> 00:12:13,440 Speaker 3: we call ours sales industrial specialists, and that's all we do. 243 00:12:13,520 --> 00:12:16,160 Speaker 3: So we don't do healthcare assets, we don't do residential. 244 00:12:16,160 --> 00:12:19,520 Speaker 3: We're all focused and know this market particularly well. So yeah, 245 00:12:19,559 --> 00:12:21,720 Speaker 3: that has been a strength of ours. 246 00:12:21,840 --> 00:12:23,920 Speaker 1: Let's talk a bit about the market and some of 247 00:12:23,920 --> 00:12:26,160 Speaker 1: the people that you're dealing with in it. I imagine 248 00:12:26,200 --> 00:12:27,520 Speaker 1: with one hundred. 249 00:12:27,240 --> 00:12:29,480 Speaker 3: And twenty odd yea thirty tenant YEA one. 250 00:12:29,480 --> 00:12:33,000 Speaker 1: Hundred and thirty tenants, mostly industrial, you'd be getting a 251 00:12:33,040 --> 00:12:36,720 Speaker 1: pretty good sounding on how our economy is working at 252 00:12:36,760 --> 00:12:38,920 Speaker 1: the moment right now, where the pressures. 253 00:12:38,559 --> 00:12:41,719 Speaker 3: Are, where the opportunities are yeah, right, yeah, We've got 254 00:12:41,720 --> 00:12:43,440 Speaker 3: our sales a bit of a bell weather really by 255 00:12:43,960 --> 00:12:46,880 Speaker 3: having that many tenants, and they're all in different industries. 256 00:12:46,960 --> 00:12:49,800 Speaker 3: So we've got, you know, kitchen manufacturers next door. You 257 00:12:49,800 --> 00:12:54,240 Speaker 3: know who manufactured kitchen. So when the residential markets struggling, 258 00:12:54,600 --> 00:12:56,480 Speaker 3: these guys, we hear about it from those guys. When 259 00:12:56,520 --> 00:13:00,000 Speaker 3: the residential market's doing really well, they're building wardrobes and 260 00:13:00,000 --> 00:13:02,480 Speaker 3: baundry systems and kitchen so we know that's doing well. 261 00:13:03,520 --> 00:13:07,200 Speaker 3: We've got logistics companies that move freight around New Zealand 262 00:13:07,200 --> 00:13:10,800 Speaker 3: all over New Zealand, you know, from DHL to Move Logistics, 263 00:13:11,840 --> 00:13:14,560 Speaker 3: main freight, all the big guys. So we're tapped into 264 00:13:14,559 --> 00:13:18,000 Speaker 3: this network of people that, you know, give us what's 265 00:13:18,040 --> 00:13:22,880 Speaker 3: happening at the cold face, give us the goste. I 266 00:13:22,880 --> 00:13:25,680 Speaker 3: think everyone said about twelve months ago, survived to twenty 267 00:13:25,720 --> 00:13:28,520 Speaker 3: twenty five. From what we can see, it's going to 268 00:13:28,520 --> 00:13:30,679 Speaker 3: be the end of twenty twenty five. It's still pretty 269 00:13:30,720 --> 00:13:35,640 Speaker 3: tough out there, but there's definitely some positivity. I think. 270 00:13:36,400 --> 00:13:38,240 Speaker 3: I think there's a bit of hope from a political 271 00:13:38,280 --> 00:13:40,480 Speaker 3: point of view that some of the rhetoric that you've 272 00:13:40,480 --> 00:13:42,080 Speaker 3: been here in the last three to six months. Will 273 00:13:42,120 --> 00:13:44,520 Speaker 3: start to see some action towards the middle of this year. 274 00:13:45,320 --> 00:13:48,040 Speaker 3: Interst rates is a big driver of the property market. 275 00:13:48,280 --> 00:13:50,520 Speaker 3: As they go up, property prices tend to go down. 276 00:13:52,360 --> 00:13:53,959 Speaker 3: You know, everyone's watching what's going to happen in the 277 00:13:54,040 --> 00:13:56,360 Speaker 3: end of February. Reserve Bank. Will there be a fifty 278 00:13:56,640 --> 00:14:00,520 Speaker 3: point basis cut or more or less there? There's some 279 00:14:00,559 --> 00:14:04,920 Speaker 3: thematics there, the labor force. If you went back three years, 280 00:14:05,200 --> 00:14:09,120 Speaker 3: a regular comment was we can't get good staff. Towards 281 00:14:09,200 --> 00:14:10,680 Speaker 3: the middle of last year was how do we hold 282 00:14:10,720 --> 00:14:13,319 Speaker 3: on to our good staff, as in, you know, we're downsizing. 283 00:14:14,440 --> 00:14:17,280 Speaker 3: So yeah, I think there's a bit more pain to 284 00:14:17,320 --> 00:14:19,880 Speaker 3: go through in the next six to nine months. But 285 00:14:20,520 --> 00:14:22,400 Speaker 3: looking at our tenant base, a lot of them are 286 00:14:22,640 --> 00:14:24,760 Speaker 3: large businesses that have been around for a long time 287 00:14:24,800 --> 00:14:27,600 Speaker 3: and do invest for the long term. I mean Fisher 288 00:14:27,600 --> 00:14:29,920 Speaker 3: and Picle. You know, they've signed a fifteen year lease 289 00:14:30,000 --> 00:14:32,160 Speaker 3: with us, so they're planning on being around for the 290 00:14:32,200 --> 00:14:34,720 Speaker 3: long term, which is really good. Next door, we've got 291 00:14:34,720 --> 00:14:37,120 Speaker 3: another development you can see the diggers working on it already, 292 00:14:37,120 --> 00:14:41,200 Speaker 3: which is another company, my Tech, who have signed on 293 00:14:41,240 --> 00:14:43,200 Speaker 3: for twelve years. So that building down there will be 294 00:14:43,200 --> 00:14:46,040 Speaker 3: finished towards in the next year. So there are companies 295 00:14:46,040 --> 00:14:49,440 Speaker 3: making long term decisions and looking through the cycle. So 296 00:14:49,600 --> 00:14:52,480 Speaker 3: for us, it's a question of you know, in our view, 297 00:14:52,560 --> 00:14:55,480 Speaker 3: quality attracts quality. If we can get the product right 298 00:14:55,520 --> 00:14:58,200 Speaker 3: in the right areas, then we should still continue to 299 00:14:58,200 --> 00:15:02,200 Speaker 3: attract good quality tenants, which will ensure good cash flow, 300 00:15:02,360 --> 00:15:04,480 Speaker 3: which means we can carry on pain and growing divid 301 00:15:04,520 --> 00:15:07,040 Speaker 3: into our to shareholders. Yeah. 302 00:15:07,040 --> 00:15:09,360 Speaker 1: I think in your last results you were talking about 303 00:15:09,640 --> 00:15:12,880 Speaker 1: p FI effectively. I think undercharging is that the right 304 00:15:12,920 --> 00:15:16,320 Speaker 1: way to put it. That you under rented sixteen percent. 305 00:15:16,360 --> 00:15:20,160 Speaker 1: That means there's extra value that you could be that 306 00:15:20,360 --> 00:15:23,680 Speaker 1: relies on the ability of your tenants to be financially 307 00:15:23,760 --> 00:15:25,680 Speaker 1: healthy enough and see the way forward to. 308 00:15:25,600 --> 00:15:28,240 Speaker 3: Pay that so exactly right. That comes back to the 309 00:15:29,000 --> 00:15:32,120 Speaker 3: quality of your tenant, I guess. So we call it 310 00:15:32,120 --> 00:15:34,520 Speaker 3: an under renting. So when you sign a long term lease, 311 00:15:34,560 --> 00:15:38,200 Speaker 3: it's not unusual to have what we call fixed rent reviews. 312 00:15:38,680 --> 00:15:41,320 Speaker 3: So for instance, this the least we've done with fish 313 00:15:41,320 --> 00:15:44,520 Speaker 3: from Pikele here. Every year the rent increases by a 314 00:15:44,520 --> 00:15:48,280 Speaker 3: certain amount, and that's to try and stop neither the 315 00:15:48,360 --> 00:15:50,440 Speaker 3: landlord or the tenant being in a position where you're 316 00:15:50,960 --> 00:15:53,680 Speaker 3: out of market, where you know you're heavily under rented 317 00:15:53,760 --> 00:15:55,600 Speaker 3: or heavily over rented, it's got to be fair for 318 00:15:55,640 --> 00:15:58,520 Speaker 3: both parties. And what we found the last three years, 319 00:15:58,520 --> 00:16:01,920 Speaker 3: particularly since COVID is in the industrial property market anyway, 320 00:16:01,960 --> 00:16:04,560 Speaker 3: there's been massive rental growth. So we've seen rents go 321 00:16:04,720 --> 00:16:07,360 Speaker 3: up ten to fifteen percent per annum. So if you 322 00:16:07,960 --> 00:16:09,880 Speaker 3: haven't had a rent review for three years, you could 323 00:16:09,920 --> 00:16:13,160 Speaker 3: be thirty to forty five percent under rented. And so 324 00:16:13,200 --> 00:16:16,280 Speaker 3: you have this rent review mechanism within the lease which 325 00:16:16,400 --> 00:16:18,840 Speaker 3: allows you to bring the rent back up to a market. 326 00:16:18,880 --> 00:16:21,040 Speaker 3: And conversely, if they're over rented, it brings the rent 327 00:16:21,040 --> 00:16:22,960 Speaker 3: back down, so the tenant benefits there. 328 00:16:23,920 --> 00:16:25,560 Speaker 1: So sixteen percent achievable. 329 00:16:25,880 --> 00:16:28,560 Speaker 3: So across our portfolio, that's what the values are saying. 330 00:16:29,080 --> 00:16:32,840 Speaker 3: We're under rented. Again, it's when you get access to that, 331 00:16:32,880 --> 00:16:35,040 Speaker 3: when's the time and of that rent coming through. But yeah, 332 00:16:35,040 --> 00:16:37,640 Speaker 3: the last couple of years we've been achieving a lot 333 00:16:37,680 --> 00:16:40,600 Speaker 3: more than that in certain cases, so we had catch 334 00:16:40,640 --> 00:16:44,360 Speaker 3: up rent reviews effectively or new leases. So yeah, we're 335 00:16:44,440 --> 00:16:46,920 Speaker 3: pretty confident. If you look through our tenant profile again, 336 00:16:47,000 --> 00:16:50,400 Speaker 3: businesses like main freight, fishrimpipal plants as DHR. These are 337 00:16:50,400 --> 00:16:53,000 Speaker 3: big companies. They know the trends or what's happening in 338 00:16:53,000 --> 00:16:56,120 Speaker 3: the market. One way you could say it is it's 339 00:16:56,240 --> 00:16:58,480 Speaker 3: under rented, but it could also you could turn around 340 00:16:58,480 --> 00:17:00,600 Speaker 3: and say a tenant where you've benefited over the last 341 00:17:00,640 --> 00:17:02,960 Speaker 3: three years from not paying the market rent. And as 342 00:17:03,000 --> 00:17:05,119 Speaker 3: long as you're having these conversations early on in the 343 00:17:05,160 --> 00:17:08,200 Speaker 3: piece and do it in a respectful manner, then yeah, 344 00:17:08,480 --> 00:17:11,480 Speaker 3: it seems to be readily achievable, which is good. 345 00:17:12,840 --> 00:17:14,720 Speaker 1: We're talking about interest rates before. Do you have a 346 00:17:14,760 --> 00:17:17,720 Speaker 1: personal view given where things are going? Do you claim 347 00:17:17,720 --> 00:17:19,919 Speaker 1: any greater knowledge from listening to the people that you 348 00:17:19,960 --> 00:17:20,280 Speaker 1: talk to. 349 00:17:20,800 --> 00:17:24,040 Speaker 3: I think if you went back six months when they 350 00:17:24,080 --> 00:17:26,399 Speaker 3: started cutting the interest rates is a bit of a surprise, 351 00:17:26,440 --> 00:17:28,520 Speaker 3: and now everyone's thinking they're going to go very, very low. 352 00:17:29,400 --> 00:17:31,840 Speaker 3: I think what's happened the last two to three months. 353 00:17:32,119 --> 00:17:33,959 Speaker 3: If you look what's happening off sure in America, etcetera, 354 00:17:34,000 --> 00:17:35,840 Speaker 3: they might not go as low as people think they're 355 00:17:35,840 --> 00:17:37,399 Speaker 3: going to go, and it might take a bit longer 356 00:17:37,880 --> 00:17:40,480 Speaker 3: to get them down there. So there's still a little 357 00:17:40,480 --> 00:17:44,080 Speaker 3: bit of inflation floating around. I know our headline inflation's 358 00:17:44,080 --> 00:17:46,520 Speaker 3: at two point one, but rates insurance that non tradable 359 00:17:46,520 --> 00:17:51,200 Speaker 3: inflation is still pretty strong. So yeah, for what it's worth, 360 00:17:52,080 --> 00:17:55,120 Speaker 3: Adrian Or seems to march the beat of his own drum, 361 00:17:55,240 --> 00:17:58,880 Speaker 3: rightly or wrongly. So yeah, I don't think it's a 362 00:17:58,920 --> 00:18:01,480 Speaker 3: dead suit that it's going to fall away aggressively over 363 00:18:01,480 --> 00:18:02,720 Speaker 3: the next twelve months. 364 00:18:02,560 --> 00:18:04,359 Speaker 1: And no idea how long it'll stay like that. 365 00:18:04,720 --> 00:18:07,159 Speaker 3: Oh idea. Yeah, And that's why if you look at 366 00:18:07,160 --> 00:18:10,960 Speaker 3: the leases that we sign, they have these fixed growth 367 00:18:11,040 --> 00:18:14,560 Speaker 3: built into them. We have these opportunities to review the 368 00:18:14,640 --> 00:18:19,679 Speaker 3: leases to market and primarily that's not just for the landladle, 369 00:18:19,720 --> 00:18:22,160 Speaker 3: it's for both parties, landlord and the tenant. You've got 370 00:18:22,160 --> 00:18:24,480 Speaker 3: to try and keep those rents out or around market. 371 00:18:24,520 --> 00:18:26,359 Speaker 3: It doesn't really benefit anyone in the short term. It 372 00:18:26,359 --> 00:18:28,240 Speaker 3: sounds great are getting these big rent reviews, but it 373 00:18:28,280 --> 00:18:30,199 Speaker 3: just means you haven't been at market for the two 374 00:18:30,280 --> 00:18:33,399 Speaker 3: or three years earlier. And then if you're overcharging your 375 00:18:33,440 --> 00:18:36,760 Speaker 3: tenant that's not a great scenario either. It just means 376 00:18:36,800 --> 00:18:39,639 Speaker 3: at some point they'll be looking around. So yeah, it's 377 00:18:39,680 --> 00:18:40,920 Speaker 3: got to be fair for both parties. 378 00:18:41,000 --> 00:18:43,879 Speaker 1: Australia as a market or as a potential place to 379 00:18:44,080 --> 00:18:46,639 Speaker 1: invest for property. Is that ever crossed your minds? 380 00:18:46,680 --> 00:18:48,520 Speaker 3: How we've looked at it in the past, it's fair 381 00:18:48,560 --> 00:18:53,480 Speaker 3: to say, and at times it's been attractive depending on 382 00:18:53,680 --> 00:18:57,360 Speaker 3: exchange rates. There's a tax regime that at times looks 383 00:18:57,400 --> 00:19:01,320 Speaker 3: quite attractive. But what we've found under is a little 384 00:19:01,320 --> 00:19:02,960 Speaker 3: bit of stick to your knitting. There's some big boys 385 00:19:02,960 --> 00:19:06,159 Speaker 3: in Australia that live there, breathe there, have operated there 386 00:19:06,160 --> 00:19:09,400 Speaker 3: for a long time, you know, particularly in Auckland. It's 387 00:19:09,440 --> 00:19:11,960 Speaker 3: a pretty big market here and we think there's plenty 388 00:19:12,000 --> 00:19:15,080 Speaker 3: of opportunities here. So you've really got to we want 389 00:19:15,119 --> 00:19:16,840 Speaker 3: to knock it out of the park here in Auckland 390 00:19:16,840 --> 00:19:20,240 Speaker 3: and New Zealand first and foremost. But never say never, 391 00:19:20,400 --> 00:19:23,240 Speaker 3: you know, as part of a portfolio acquisition or you know, 392 00:19:23,640 --> 00:19:26,479 Speaker 3: a partnership with a company that goes offshore, we wouldn't 393 00:19:26,520 --> 00:19:26,840 Speaker 3: say no. 394 00:19:27,080 --> 00:19:30,440 Speaker 1: So let's bring it back right here where we are now. Then, 395 00:19:30,480 --> 00:19:32,879 Speaker 1: So this is a green star building, you're saying, what 396 00:19:33,119 --> 00:19:33,680 Speaker 1: does that mean? 397 00:19:34,080 --> 00:19:38,680 Speaker 3: So the New Zealand Green Building Council has a rating system. 398 00:19:38,880 --> 00:19:41,560 Speaker 3: So yeah, we've designed the building. So right at the 399 00:19:41,600 --> 00:19:44,320 Speaker 3: start you make the decision with all your consultants, your architects, 400 00:19:44,320 --> 00:19:46,160 Speaker 3: the engineers that you want it to be rated by 401 00:19:46,160 --> 00:19:48,840 Speaker 3: the Green Building Council, and there's a series of points 402 00:19:48,840 --> 00:19:52,000 Speaker 3: that you achieve on the way through in design, in 403 00:19:52,040 --> 00:19:54,399 Speaker 3: the recycling, the materials that you take away from the site, 404 00:19:54,760 --> 00:19:57,040 Speaker 3: and then the finished product. And as I said earlier, 405 00:19:57,080 --> 00:19:58,960 Speaker 3: it's things like you get points for solar power, for 406 00:19:59,040 --> 00:20:03,880 Speaker 3: rainwater harvesting, electric charges out there, and depending on how 407 00:20:03,880 --> 00:20:06,080 Speaker 3: many points do you get, you need sixty points to 408 00:20:06,160 --> 00:20:09,480 Speaker 3: achieve five green stars. And so this building at the 409 00:20:09,480 --> 00:20:10,960 Speaker 3: moment sitting on about sixty four. 410 00:20:11,040 --> 00:20:12,120 Speaker 1: So who's asking for that. 411 00:20:13,440 --> 00:20:15,919 Speaker 3: It's a global thing, that is what we're seeing. So 412 00:20:15,960 --> 00:20:20,000 Speaker 3: sustainability I don't need to lecture people on that, but 413 00:20:20,160 --> 00:20:25,040 Speaker 3: globally what we've seen from both tenants, from insurance companies, 414 00:20:25,040 --> 00:20:30,640 Speaker 3: from finance and governments. It's been pushed onto people over 415 00:20:30,680 --> 00:20:34,520 Speaker 3: the last probably the last decade, effectively, but it's ramped up. 416 00:20:34,520 --> 00:20:36,720 Speaker 3: We've seen it ramped up probably in the last six 417 00:20:36,800 --> 00:20:38,920 Speaker 3: or seven years. And we made a decision about four 418 00:20:39,000 --> 00:20:42,080 Speaker 3: years ago that we wanted to be at the forefront 419 00:20:42,080 --> 00:20:43,439 Speaker 3: of it, and we wanted to be part of the 420 00:20:43,480 --> 00:20:46,600 Speaker 3: group that is now heading down that track and leading 421 00:20:46,640 --> 00:20:49,879 Speaker 3: the market and that so any development we've done in 422 00:20:49,920 --> 00:20:53,640 Speaker 3: the last three years has been targeting that five Green development. 423 00:20:53,680 --> 00:20:56,320 Speaker 3: We've just finished another one in Mount Wellington too large 424 00:20:56,359 --> 00:21:00,560 Speaker 3: buildings again one hundred million dollars plus and I've green 425 00:21:00,560 --> 00:21:04,120 Speaker 3: Star rated and we're looking into a model where by 426 00:21:04,240 --> 00:21:06,639 Speaker 3: our existing buildings we can start to get rating. So 427 00:21:06,680 --> 00:21:08,200 Speaker 3: we're working there's a group of us working with the 428 00:21:08,240 --> 00:21:10,680 Speaker 3: Green Building Council to establish a regime on how do 429 00:21:10,720 --> 00:21:13,399 Speaker 3: you take an existing building and get a rating. And 430 00:21:13,840 --> 00:21:16,000 Speaker 3: eventually where we'll get to is tenants will be out 431 00:21:16,040 --> 00:21:17,960 Speaker 3: to go right. We want to go into a four 432 00:21:18,000 --> 00:21:20,280 Speaker 3: Green Star eighting or a five Green Star and there'll 433 00:21:20,320 --> 00:21:23,040 Speaker 3: be a rental premium to come into a good building, 434 00:21:23,240 --> 00:21:24,720 Speaker 3: is our view. That's where it's going to do it. 435 00:21:24,760 --> 00:21:27,360 Speaker 3: It's already there in the in the office buildings. You're 436 00:21:27,359 --> 00:21:30,880 Speaker 3: starting to see. One of the agencies James lang Lasal 437 00:21:31,000 --> 00:21:34,160 Speaker 3: did a research note middle of the last year it's 438 00:21:34,200 --> 00:21:37,919 Speaker 3: between six and seven percent premium rents going into a 439 00:21:37,920 --> 00:21:40,679 Speaker 3: green Star rated building. So eventually what will happen is 440 00:21:41,359 --> 00:21:43,840 Speaker 3: the tenants will have a choice between Green Star non 441 00:21:43,880 --> 00:21:46,440 Speaker 3: Green Star. They'll pay a different price and we think 442 00:21:46,600 --> 00:21:47,920 Speaker 3: to be at the forefront. You want to be in 443 00:21:47,960 --> 00:21:49,200 Speaker 3: the green Star rated buildings? 444 00:21:49,440 --> 00:21:51,800 Speaker 1: Are we at the forefront here from the government's point 445 00:21:51,800 --> 00:21:53,840 Speaker 1: of view in terms of setting the playing field for 446 00:21:53,880 --> 00:21:56,040 Speaker 1: this kind of stuff, because I understood there's a bit 447 00:21:56,080 --> 00:21:58,920 Speaker 1: of a bit of a drift to here. Maybe they're 448 00:21:59,000 --> 00:22:02,240 Speaker 1: going to prehead with some of those regulation. Yeah, it's easier. 449 00:22:02,320 --> 00:22:03,960 Speaker 3: I think it costs more to build a Green Star 450 00:22:04,040 --> 00:22:07,280 Speaker 3: rted building. It's going to have access to capital. The 451 00:22:07,320 --> 00:22:10,720 Speaker 3: compliance regime is pretty tough, so are the settings right. 452 00:22:11,119 --> 00:22:14,240 Speaker 3: There's probably room for improvement, but you know, at the moment, 453 00:22:14,680 --> 00:22:16,960 Speaker 3: just even getting hold of consultants that are green Star 454 00:22:17,000 --> 00:22:21,359 Speaker 3: accredited is quite tough. So you know, as the market develops, 455 00:22:21,440 --> 00:22:24,320 Speaker 3: there'll be more people attracted into that. I think you'll 456 00:22:24,359 --> 00:22:28,560 Speaker 3: start to see you know that right itself. The residential market, 457 00:22:28,600 --> 00:22:31,760 Speaker 3: you're starting to see, you know, a gain a foothold there, 458 00:22:32,160 --> 00:22:34,399 Speaker 3: so it will flow through I think industrial you know, 459 00:22:34,440 --> 00:22:37,119 Speaker 3: we were talking about being the set class out the 460 00:22:37,160 --> 00:22:39,240 Speaker 3: back getting the work done. No one really sees it. 461 00:22:39,840 --> 00:22:42,120 Speaker 3: You know, it's very rare that you see a big 462 00:22:42,160 --> 00:22:44,240 Speaker 3: shiny warehouse on the front page of the herald. But 463 00:22:44,359 --> 00:22:46,600 Speaker 3: you know, you'll open a shopping center or an Ikea 464 00:22:46,800 --> 00:22:49,800 Speaker 3: or you know, you know, a set of flats and 465 00:22:50,720 --> 00:22:52,760 Speaker 3: it's up in lights, which is fine by us. We're 466 00:22:52,840 --> 00:22:54,760 Speaker 3: very happy being off the front page of the Herald. 467 00:22:55,359 --> 00:22:58,200 Speaker 3: But that's the reality. So I think the industrial class 468 00:22:58,280 --> 00:23:00,000 Speaker 3: is probably just out of the back a little bit. 469 00:23:00,119 --> 00:23:04,160 Speaker 3: But time we'll catch it. And as I said earlier, 470 00:23:04,560 --> 00:23:08,080 Speaker 3: and we're seeing in terms of finance, you talk about finance, 471 00:23:08,920 --> 00:23:11,719 Speaker 3: green star rated buildings, you can get cheaper finance. So 472 00:23:11,800 --> 00:23:15,040 Speaker 3: it's starting to go that way. And I think a 473 00:23:15,119 --> 00:23:17,600 Speaker 3: Laney speed up is more and more of us pushed it, 474 00:23:17,600 --> 00:23:18,960 Speaker 3: and most of it go back to one of your 475 00:23:18,960 --> 00:23:22,960 Speaker 3: original questions around the listed competitors jump on the websites. 476 00:23:23,000 --> 00:23:25,760 Speaker 3: Everyone's all the listed guys that are into it now 477 00:23:25,880 --> 00:23:28,880 Speaker 3: understand it and are pushing into it. So it's here. 478 00:23:29,240 --> 00:23:30,080 Speaker 3: It's not going away. 479 00:23:31,119 --> 00:23:35,320 Speaker 1: Some would say we're in probably arguably the worst recession 480 00:23:35,359 --> 00:23:37,679 Speaker 1: since nineteen ninety one, which is as long as I 481 00:23:37,680 --> 00:23:40,040 Speaker 1: can remember. Anyway, maybe you two, I don't know whether 482 00:23:40,080 --> 00:23:42,440 Speaker 1: you agree with that statement, but if you finish the 483 00:23:42,520 --> 00:23:45,280 Speaker 1: sentence in now is the right time for. 484 00:23:45,240 --> 00:23:49,520 Speaker 3: P FI to be doing exactly what we're doing. Really, 485 00:23:50,920 --> 00:23:53,560 Speaker 3: So we've got a portfolio of assets that are really 486 00:23:53,560 --> 00:23:57,360 Speaker 3: well located. They've been built, portfolio has been built over 487 00:23:57,400 --> 00:24:00,320 Speaker 3: thirty years. We've got a lot of inherent opportunity that 488 00:24:00,400 --> 00:24:04,119 Speaker 3: sit within the portfolio. An example is exactly here. You know, 489 00:24:04,160 --> 00:24:06,760 Speaker 3: this was an underutilized site but in the middle of 490 00:24:06,760 --> 00:24:10,280 Speaker 3: eat Tamie ten hectares and so we've you know, in 491 00:24:10,480 --> 00:24:14,040 Speaker 3: pretty tough times, we've removed a building, we've built a 492 00:24:14,080 --> 00:24:17,399 Speaker 3: world class facilidity least to a world class tenant on budget, 493 00:24:18,040 --> 00:24:22,680 Speaker 3: under time, a head of schedule. So stick to our knitting. 494 00:24:22,720 --> 00:24:25,520 Speaker 3: We've got plenty of opportunities within the portfolio that we're 495 00:24:25,600 --> 00:24:28,760 Speaker 3: accessing and so as a shareholder you will enjoy the 496 00:24:28,800 --> 00:24:30,159 Speaker 3: benefit of that going forward. 497 00:24:31,320 --> 00:24:32,320 Speaker 1: What about your runway? 498 00:24:32,800 --> 00:24:35,120 Speaker 3: Really enjoy what I do. We've built a great team. 499 00:24:35,560 --> 00:24:37,600 Speaker 3: There's twenty six of us that sit in an office 500 00:24:38,200 --> 00:24:40,680 Speaker 3: back in the city, but we all enjoy getting out 501 00:24:40,680 --> 00:24:43,680 Speaker 3: to the sites, meeting with the tenants. You hear about 502 00:24:43,680 --> 00:24:46,960 Speaker 3: their businesses, about their livelihoods, what they're doing, some good, 503 00:24:47,080 --> 00:24:51,000 Speaker 3: some really good, some maybe not so good. But it's 504 00:24:51,040 --> 00:24:53,960 Speaker 3: a real people's person sort of industry and that's something 505 00:24:53,960 --> 00:24:57,080 Speaker 3: that I've always enjoyed. So yeah, whilst we've got a 506 00:24:57,119 --> 00:25:01,000 Speaker 3: young team that sort of want to keep going. Hopefully 507 00:25:01,040 --> 00:25:04,080 Speaker 3: we can put projects in front of them and keep developing. 508 00:25:04,119 --> 00:25:07,399 Speaker 3: P five. When I was when we brought the management contract, 509 00:25:07,440 --> 00:25:10,439 Speaker 3: that was a three hundred and forty million dollar portfolio. 510 00:25:10,440 --> 00:25:13,080 Speaker 3: It's now about to click over two point one billion. 511 00:25:13,160 --> 00:25:15,480 Speaker 3: So you know, it's been a been an area that 512 00:25:15,520 --> 00:25:19,000 Speaker 3: we've enjoyed some really good success. So I'm looking forward 513 00:25:19,040 --> 00:25:22,240 Speaker 3: to some more that it never stop. So exactly right, 514 00:25:22,400 --> 00:25:23,360 Speaker 3: but it never stops. 515 00:25:23,520 --> 00:25:26,200 Speaker 1: Good place to leave it. Thanks for watching and for listening. 516 00:25:26,240 --> 00:25:28,359 Speaker 1: If you're watching, you probably on YouTube. If you're listening, 517 00:25:28,400 --> 00:25:32,200 Speaker 1: you're on Spotify, Apple or iHeart, wherever you are. Tell 518 00:25:32,280 --> 00:25:34,000 Speaker 1: us what you think and tell us what you'd like 519 00:25:34,040 --> 00:25:36,239 Speaker 1: to hear about or see next. For now, that's us 520 00:25:36,280 --> 00:25:40,960 Speaker 1: on Shared Lunch cor Me two