Good morning and welcome to the 2026 full year results presentation, in what has been a strategically significant year for Storage King Group with the successful internalisation of the business being completed on the 30th of June. I'm joined here today by our CFO Evan Goodridge, our COO Anargyros Gravitis, and the Investor Relations team.

To provide consistency with half year ASK results, we plan to cover our results in a format familiar to all of you. Going forward with the consolidation of systems under the group, we aim to leverage this into an updated pack for the February's half year results.

On to our highlights. FY 2026 saw strong progress across our key growth drivers, with highlights spanning operations, platform enhancement, development, capital deployment, and dare I say the crowning achievement being the internalisation of the business.

Operationally, it was Australia who delivered resilient performance, with 2.7% RevPAM growth and occupancy remaining above 90% despite competitive market conditions. We strengthened the platform through the rollout of our proprietary revenue management system, greater analytics capability, and continued investment in the Storage King brand.

Development was a standout, with 34,500 square metres delivered and a further 110,000 square metres in the pipeline, creating a significant source of future earnings growth. We deployed $78 million into strategic acquisitions and replenished the development pipeline with three new sites aligned to our network strategy.

It's internalisation that represents a significant milestone for Storage King Group. Today, SKG is the only ASX-listed, vertically integrated self-storage platform in Australasia, owning, operating, and managing its portfolio.

The transaction immediately strengthens alignment between management and securityholders. It retains key leadership capability and simplifies the group's operating structure.

It's already earnings accretive, with forecast cost savings and cultural integration. Most importantly, it fundamentally improves the way securityholders participate in future growth.

While internalisation is not the growth strategy itself, it creates a stronger platform and allows us to capture more of the value generated by that growth over time. Turning to our key business metrics, the group now manages 132 trading stores and a growing development pipeline, with gross asset value increasing 8.1% to more than $3.9 billion.

That's up from $666 million just eight years ago. Underpinning this is a high quality land bank of over 1.2 million square metres across metropolitan Australia and New Zealand.

Across the portfolio, the weighted average capitalisation rate tightened 3 basis points to 5.42%, reflecting the quality, resilience, and growth prospects of the asset base. This contributed to NTA increasing to $1.77 per security, up from $1.74 a year ago and up from $1.57 on de-stapling three years ago.

Our balance sheet remains strong with gearing at the midpoint of our target range, providing capacity to fund our development pipeline and pursue selective acquisition opportunities. Operationally, the Storage King platform continues to deliver market-leading occupancy, achieved rate, and RevPAM performance.

Finally, we delivered a full year distribution of 6.2 cents per security, in line with guidance. Overall, these results demonstrate the resilience of both our business and the self-storage sector.

While near-term market conditions remain competitive, we continue to see strong long-term fundamentals and a significant runway for future growth. As the only listed self-storage REIT on the ASX, it's worth taking a moment to highlight why we remain so positive on the sector's long-term investment fundamentals.

First, self-storage has a highly responsive revenue model. Month-to-month customer agreements allow us to reprice quickly and adapt to changing inflationary and market conditions.

Second, demand has proven resilient across economic cycles. Our customer base is highly diversified, spanning personal and business uses, with no material customer or asset concentration.

Third, we continue to see a compelling structural growth runway. Penetration rates in Australia and New Zealand remain materially below the United States, which in itself still continues to grow.

While population growth, urban densification, and smaller living spaces continue to support demand. Fourth, the sector benefits from attractive operating economics.

High margins, low incentives, and relatively modest capital requirements support strong cash flow conversion. Finally, the market remains highly fragmented.

This creates ongoing opportunities for consolidation, with Storage King's scale, brand, and reputation providing strong access to future growth opportunities. Taken together, these characteristics make self-storage a resilient, cash-generative sector with multiple avenues for long-term growth.

The group is uniquely positioned to capitalise on these attractive sector fundamentals. We combine scale, sector-leading operating metrics, significant embedded growth opportunities, a market-leading platform, the most recognised brand in Australia and New Zealand, and deep experience in the sector.

These competitive advantages give us confidence in our ability to continue creating long-term value for securityholders through the cycle. With that, I'll hand over to Evan to discuss the financial results.

Thanks Nikki and good morning. FY 2026 was a year of continued operating growth and a significant strategic transition for Storage King.

Operating revenue increased 3.3% to $236 million and operating profit increased 2.4% to $145.3 million, while our operating margin remained steady at 62%. Breaking the operating result further, established revenue grew by 1.2% to $193 million, despite a tougher backdrop including cost of living pressures, subdued housing turnover, and a more competitive environment with heavier promotional discounting from our competitors.

Importantly, our Australian established RevPAM increased 2.7%, with positive growth across every state. New Zealand was the exception, with established RevPAM down 11.7%, or 2.3% excluding the impact of foreign exchange and disruption from capital works.

Those works were completed in May 2026, meaning that operational disruption is now behind us and the portfolio enters FY 2027 in a materially better position. The composition of earnings is also changing as we allocate more capital to assets earlier in their earnings lifecycle.

Revenue from acquisition assets increased 7.3% to $9.1 million and revenue from stabilising assets increased 27.2% to $21.5 million. These assets have lower initial yields while they lease up, but they provide a substantial earnings pipeline as occupancy and rental yield move towards established store level metrics.

Our proprietary revenue management system is now active across every owned store and will expand its capability further in FY 2027. FY 2026 was also a record year for new developments, with 34,500 square metres net lettable area delivered from next generation stores and expansions.

For FY 2027, we are forecast to deliver a further 50,000 square metres, including two of our largest and highest quality assets at Sydney Olympic Park and Mascot. Operating expenses rose 4.9% for the period, driven by the addition of six new stores and like-for-like non-controllable statutory costs, which again grew at double-digit rates for the year.

For FY 2027, we expect this statutory cost pressure to ease, with growth returning towards more normalised levels. Our 62% operating margin is a whole-of-portfolio measure.

It includes not only our established stores, but also our acquisition and stabilising assets that are still building occupancy and earnings. We expect that margin will broadly remain stable in FY 2027 despite approximately 50,000 square metres of new development completions.

Maturation of the existing acquisition and stabilising portfolios, further revenue management capability, and centralisation of specialist functions should largely offset the initial drag from new stores coming online, with operating profit continuing to grow. As Nikki mentioned, internalisation also gives us, for the first time, one integrated operating and data ecosystem.

We will use that capability to reconsider how best we present portfolio performance in our HY 2027 results. FY 2026 was the last year in which Storage King carried the full cost of external management.

The increase in overheads from $21.9 million to $23 million is mainly attributable to these external management fees. Internalisation removes that structural drag, and we expect approximately $7 million of annualised savings, with a little over $5 million through lower P&L overheads and the balance reducing costs that would have otherwise been capitalised into our development pipeline.

During the period, net finance costs rose to $39.7 million, up from $33.8 million. For FY 2026, the group earned FFO of $82.1 million or 6.24 cents per security and paid a distribution of 6.2 cents.

Over recent years, the group has benefited from a relatively low cost of hedged debt. As those hedges progressively mature, finance costs will increase and remain a material earnings headwind in the near term.

The operating growth initiatives that I have discussed, together with the benefits of internalisation, are important to help cushion this near-term headwind, but do not fully offset it. As we enter FY 2027, there are therefore three important moving parts.

First, we expect the existing portfolio and maturing assets to continue to grow operating profit. Second, internalisation removes approximately $7 million of annualised costs.

Third, finance costs will rise materially as our historical hedges mature and drawn debt increases to fund the growth pipeline. Our FY 2027 cost of debt is guided to be no greater than 4.75%, or 5.5% including capitalised interest.

Against that backdrop, for FY 2027 we have chosen to widen our payout ratio range, lowering the bottom end to 80% of FFO down from 90%, and set FY 2027 distribution guidance at 4.5 cents per security, with at least 25% expected to be paid as a fully franked dividend. This will continue the planned distribution of our $36 million franking credit balance to securityholders over the medium term.

These expectations are subject to no material deterioration in current business conditions, and Nikki will cover the group's outlook, guidance, and FY 2027 priorities in more detail shortly. Turning to the balance sheet, total assets grew 8.1% to $3.9 billion.

Our total store assets were $3.6 billion, with our stable mature established portfolio representing 71% of the total, down from 77% a year ago. In FY 2026, we deliberately shifted our capital allocation towards assets with higher growth potential, increasing our exposure to more than $1 billion of acquisition, stabilising, and development assets.

This saw acquisitions grow 10% to $133 million, stabilising assets grow 24% to $563 million, and development sites grow around 64% to $352 million. For FY 2027, we expect the stabilising portfolio to grow further as the additional 50,000 square metres I mentioned comes online.

Goodwill and intangibles increased to $96 million at the end of the period. This balance includes the Storage King brand and operating platform, plus an additional $19 million associated with acquiring the responsible entity and management rights to effect the internalisation.

Net tangible assets ended the period at $1.77 per security, up 1.7%, reflecting both growth in market income and the underlying quality of a portfolio that comprises our new next generation purpose-built assets, is overwhelmingly metro located, and has 66% of our Australian stores located in Sydney, Melbourne, and Brisbane, the country's three biggest markets. As part of the internalisation, we upsized our unsecured banking facilities by $300 million, while pricing, tenor, and covenants remained unchanged.

We now have $1.65 billion in debt facilities with a weighted average term to maturity of 2.3 years. Our weighted average cost of debt for FY 2026 was 3.1%, or 4.2% including capitalised interest, benefiting from hedges put in place when rates were considerably lower.

At 30 June, the group was 72% hedged and our interest cover ratio was 3.3 times against a covenant of two times, providing headroom even as finance costs rise over the next few years. Gearing was 33.7%, comfortably within our target range, and provides us approximately $400 million of additional capacity.

We nevertheless intend to manage capital prudently as the development pipeline progresses. Our capital management options include organic valuation growth as acquisition and stabilising assets mature, capital-light structures, selective asset recycling, and other funding initiatives, and we will continue to assess each source of capital in light of securityholder returns.

Storage King's portfolio values increased 2% during the period, up $71 million. Importantly, the principal drivers were income growth and value created through completed developments rather than cap rate compression.

Separately, we invested a further $78 million in acquisitions and $168 million in capital expenditure during the period, reflected in the portfolio at cost. The portfolio weighted average cap rate tightened by only 3 basis points, from 5.45% to 5.42%.

Transaction activity across the sector remains very strong, with multiple portfolios being acquired or marketed. The weight of capital that is seeking high quality self-storage assets underpins our confidence in the value of our portfolio.

Finally, I wanted to put our reported NTA of $1.77 into context. NTA captures the carrying value of our tangible assets under accounting methodology, but it does not capture all of the economic value that we see in Storage King.

First, there is property value not reflected in the NTA. Each property is valued as if individually owned and externally operated.

Developments are held at cost rather than completion value, and portfolio transactions can attract a premium to the value of assets considered individually. Recent comparable portfolio transactions have occurred at cap rates approximately 50 to 100 basis points tighter than the rates applied to individual assets in our portfolio.

While those transactions are not directly comparable in every respect, they do provide useful evidence of the premium the market attributes to scaled self-storage portfolios. Second, there is platform value: Storage King brand, our proprietary revenue management system, our management rights, the responsible entity and associated licences, and the approximately 25,000 new customer inquiries generated each and every month.

Third, there is strategic value: our people, our integrated operating capability, our managed and licensed store network and associated pre-emptive rights, and the ability now that we are internalised to allocate capital and operate the platform entirely for Storage King securityholders. NTA tells us what our tangible balance sheet is recorded at.

It does not tell us the full economic value of a vertically integrated and owned, operated, and managed self-storage platform listed on the ASX. The strength of our people, portfolio, platform, market access, and now internalised structure positions us well to drive long-term value for our securityholders.

With that, I'll hand back to Nikki.

Thanks Evan. Before discussing earnings growth from the portfolio, it's worth reflecting on the significant capital growth achieved in the underlying portfolio itself.

Over the past eight years, the value of our self-storage assets has grown from approximately $666 million to almost $3.9 billion, representing a compound annual growth rate of 25%. More importantly, this growth has been achieved through the deliberate creation of a high quality, predominantly metropolitan portfolio located in densely populated markets across Australia and New Zealand.

These assets are increasingly difficult to replicate. Planning restrictions, land availability, and development costs continue to rise, reinforcing the strategic value of the portfolio that we have assembled.

Looking closer at the composition of that growth, an important trend is emerging. The value of our stabilising and development segments has nearly doubled since de-stapling in 2023, and is forecast to exceed $1 billion in FY 2027.

This reflects the increasing contribution of our development pipeline and highlights the growing role these assets play in the future growth of the group. With strategic locations, significant scale, and increasing barriers to entry, we believe the quality and scarcity of our assets represent one of Storage King's greatest competitive advantages and a powerful foundation for long-term securityholder value growth.

Beyond that capital growth achieved during the year, the portfolio continued to deliver income growth. As in prior periods, we break the portfolio into four segments: established, and then our high growth segments, acquisitions, stabilising, and development sites.

The established portfolio is best analysed by region and I'll cover this shortly. The most important takeaway from this slide being the shape of the portfolio and the meaningful change that has occurred.

Today, 29% of the portfolio, or 48 of the 151 company assets, sit in the high growth segments that have yet to reach their full earnings potential. Within this, it's the stabilising portfolio that drags most on current yields.

Day one, when we open a new store, we open with zero customers or revenue, but the full cost of operations, marketing, and borrowings are expensed. This moderates current overall portfolio yields substantially, but it also represents the group's most significant source of embedded growth.

As acquisitions are optimised, stabilising stores mature, and development projects are delivered and leased up, these assets provide a substantial runway for future earnings growth. By way of a simple arithmetic illustration, utilising the established portfolio metrics as seen on this slide, the organic growth opportunity within the acquisition, stabilising, and development sites represents a potential incremental revenue uplift of approximately $71 million per annum.

Given the significant operating leverage inherent, particularly in the acquisition and stabilising segments, the $26 million from these stores already trading should flow directly to FFO, with the majority of the development site revenue flowing to FFO too. Understanding that this doesn't happen overnight, it happens over years and there are many factors that sit between a development site and successful maturing.

However, in summary, the portfolio today contains a larger pool of embedded earnings growth than at any time in the group's history. Moving on to the established portfolio, which provides the foundation of the group's earnings, the portfolio continues to deliver market-leading RevPAM of $341 a square metre, and that is up 0.7% on FY 2025, with occupancy remaining strong at 90.2% but down 3 basis points on prior year.

Rate growth was driven by continued ECRI performance, partially offset by lower street rates. As we highlighted at the half year, market conditions remain competitive, with street rates exhibiting periods of both pressure and recovery throughout the year.

Looking at the established portfolio by the regions, FY 2026 was characterised by resilient operating performance, with every Australian market delivering positive RevPAM growth. Importantly, our largest markets continue to perform well, with underlying rent roll growth of 5.3% in New South Wales and 7% in Queensland, after adjusting for satellite acquisitions and expansions.

Western Australia and the ACT remain more challenging, with elevated levels of new supply directly impacting our portfolio. In Western Australia in particular, a meaningful portion of the portfolio has been impacted by new competitor facilities entering the market over the past 18 months.

The intensity of the impact is typically greatest in the early years following opening, and we expect this to moderate as these new facilities reach maturity. Turning to New Zealand, FY 2026 was impacted by three factors.

First, the depreciation of the New Zealand dollar reduced earnings. Second, trading was disrupted by roof strengthening works across five stores, which were completed in May.

Third, softer macroeconomic conditions weighed on underlying performance. As Evan mentioned, with the first two stripped out, New Zealand was still negative at -2.3% for the year.

The capital works are now complete, the affected stores have moved into recovery mode, and are focused on rebuilding occupancy and revenue performance through FY 2027. While competitive conditions are likely to remain a feature of the operating environment, management remains focused on the factors within our control.

Alongside strengthening revenue management capability, we are placing increased emphasis on productivity and cost discipline across both Australia and New Zealand to support earnings growth through the cycle. Development remains one of our most attractive avenues for growth and value creation.

Our focus is simple: develop in markets where we see strong long-term demand and where acquisitions are either unavailable, overpriced, or unlikely to meet our quality and scale requirements. During FY 2026, we continued to replenish the pipeline across three new sites identified through our refreshed network strategy.

Today, 16 of our 19 development projects are well advanced and are expected to increase portfolio capacity by around 15% over the short to medium term. Importantly, these projects are underpinned by our proven development model and we continue to target capital uplifts around 20% across the pipeline.

We've mentioned that FY 2027 will be a record year for development delivery. You can see the more than 50,000 square metres of NLA scheduled to open, including our flagship Sydney Olympic Park and Mascot stores.

These next generation facilities not only create future earnings growth, but continue to strengthen the quality and relevance of the portfolio, helping to expand the appeal of self-storage to an ever-broadening customer base. In short, the development pipeline represents a significant source of future value creation, an important driver of the embedded growth opportunity across the portfolio.

Importantly, our recent developments continue to validate our strategy. All four developments shown on this slide are performing at or ahead of underwriting expectations, demonstrating the quality of both our development model and operating platform.

Expansions are also delivering attractive returns, with a further 23,000 square metres in the pipeline. Strong execution gives us confidence in our ability to continue converting development capital into future earnings growth.

Moving to our Storage King platform, and at Storage King, growth starts with customers. We attract more customers through being the most recognised and most searched self-storage brand in Australia and New Zealand, and this generated more than 300,000 quality inquiries for the business in FY 2026.

We then convert the demand through a superior customer experience, reflected in the 24% conversion rate, NPS of 72, our quality assets, and our engaged workforce. The combination of customer attraction and customer experience has again resulted in Storage King being recognised as the number one preferred self-storage brand across Australia and New Zealand.

We believe this leadership position is a significant competitive advantage and a key driver of long-term revenue and earnings growth. The most important organic growth initiatives for the group is our proprietary revenue management system.

FY 2026 marked a key milestone with deployment now complete across the portfolio, and the business transitioning from implementation to optimisation. While market conditions have remained competitive, our confidence in the system continues to grow.

The data on the left demonstrates that stores operating with RMS generated pricing delivered ECRI outcomes approximately 2.5% higher than non-RMS stores during the measurement period. More importantly, the system is creating a disciplined, data-driven approach to revenue management.

It combines centralised analytics with local market expertise, enabling more informed pricing decisions at unit, store, and market level. Looking ahead, our focus shifts to value capture.

We've established a dedicated revenue management team, are preparing to launch value pricing capabilities through our digital channels, and will continue to enhance the platform through machine learning, testing, and optimisation. For us, the significance of RMS is not the technology itself, but the capability that it creates.

By combining data, analytics, and local market expertise, we're building a more sophisticated and scalable approach to revenue management that sits at the heart of our ability to grow revenue across the portfolio. We see AI as a meaningful opportunity for the business, but our approach is targeted, practical, and focused on measurable outcomes.

Rather than taking a scattergun approach, we are prioritising use cases across customer experience, productivity, and brand visibility, where we believe AI can create the most value. Importantly, we are already seeing results.

AI-enhanced security cameras have now been deployed across 45% of the portfolio, reducing security incidents while lowering after-hours call-outs and operational intervention. Our next major initiative is Alex, our AI customer support agent, which enters customer testing in Q1 FY 2027 and takes Sir Storalot, who's been our chatbot, to the next level.

Alex is conversational. He'll provide 24/7 customer support in multiple languages.

He'll manage routine inquiries and seamlessly escalate sales opportunities to our team for follow-up. I've had a few long conversations with him and I can confirm he also has a great sense of humour.

What excites us most is not any single application, but the ability to combine AI with our existing strength in brand, customer experience, and operating capability. Early results are encouraging and we see AI becoming an increasingly important lever for customer growth, productivity, and value creation across the platform.

Our approach to sustainability is practical and focused on long-term value creation. During FY 2026, we improved customer NPS to 72, reduced Scope 1 and 2 emissions intensity by 5%, expanded solar so that we are now across 95 stores, and we've also retained our Great Place to Work accreditation in both Australia and New Zealand.

These initiatives strengthen the resilience of our assets, support our customers and people, and contribute to sustainable long-term returns. Further detail will be provided in our sustainability report later this year.

Before I move to the priorities ahead, I'd like to take a moment to acknowledge the leaders and teams who laid the foundations for the business we are privileged to lead today. Michael Tate, together with Steven Sewell, the broader Abacus leadership team, and many talented people across both organisations helped build one of the most respected self-storage businesses in Australasia.

Their vision, commitment, and capability shaped the brand, portfolio, culture, and operating platform that underpin our success today. As the new CEO, I have enormous respect for what has been built and a clear sense of responsibility for what comes next.

Great businesses are built over decades, not years. We are fortunate to inherit a business shaped by outstanding leaders and outstanding people.

Our task is now simple: honour that legacy by building something even better. As I look ahead to FY 2027 and beyond, my focus is clear: successful internalisation.

Internalisation provides us with the foundation to capture the full value of the growth ahead. Enhance the platform through specialisation and optimisation initiatives.

Execute with excellence, realising the embedded value in the business. Controlled capital management, recognising where the business stands in its investment cycle and returns cycle, as well as the macro environment in which we are operating, and then balancing sustainable securityholder returns against disciplined reinvestment in our growth opportunities.

Finally, continue to grow through value-accretive capital allocation into new marketing and new market opportunities. As we look ahead to FY 2027, Storage King enters the year from a position of strength, with a simpler structure, a high quality portfolio, and substantial embedded growth opportunities.

FY 2027 is a year where the full cost of growth becomes visible in earnings. As developments open and move to the stabilising segment, capitalised interest progressively moves through the P&L, while our stabilising portfolio, now the largest in group's history, incurs operating costs ahead of reaching its full earnings potential.

Rather than smoothing these impacts, we believe it is important to transparently reflect the economics of the business and the stage of the portfolio's evolution in today's higher interest rate environment. Accordingly, we are providing FY 2027 distribution guidance of 4.5 cents per security and introducing a revised payout ratio of 80% to 100% of FFO, expecting to be in the midpoint of the range.

We believe FY 2027 represents an important inflection point, where the earnings impact of our investment program is recognised ahead of the benefits. Many of the assets creating an earnings headwind today are expected to become some of the strongest contributors to earnings, cash flows, and securityholder returns in the years ahead.

Our focus is now on converting that embedded potential into the next phase of value creation. Thank you for your continued support, and I look forward to updating you on our progress throughout FY 2027.

Morning Nikki, Evan, thanks for your time. A few questions from me.

The first one was on guidance. Even at the low end of your new payout range, earnings are going back 10% in FY 2027.

Can you just walk me through the drivers of that change? Obviously some large debt headwinds, but how much is a ramp-up in development and soft operating conditions playing a part?

Thanks for the question Carl, I'm going to flick to Evan to answer that one.

Thanks Carl. When we're looking into next year, we continue to grow the stabilising portfolio and we're going to see that operating profit will grow and that operating margin will stay the same.

From an income receipts perspective we're seeing that grow. However, it's not going to be enough in relation to the headwinds of the interest expense with those hedges rolling off.

The other thing to make sure that you put into your modelling is the $7 million worth of annualised cost savings from the internalisation structure. Nikki guided to the midpoint of that range as well in her speech.

Then

also just on the capitalised interest, what was the assumption going into FY 2027?

The assumption going into FY 2027 is that any developments that don't come online will capitalise the direct debt associated with those transactions. What we're looking at in FY 2027 is a similar amount being capitalised as that of FY 2026.

Then a final one on guidance was what RevPAM growth were you assuming in FY 2027?

In relation to RevPAM growth, when we look across the established portfolio, stabilising portfolio, the acquisition portfolio, and the developments coming online, they all have different forms of RevPAM growth. It's not something that we directly guide to in relation to our analysis, but we hopefully have given enough other clues throughout the presentation to assist you in your modelling.

Cool, and then a final question for me was that the 80% to 100% is quite a wide payout range. Is FY 2027 guidance assuming a payout at the bottom end, and just going forward beyond FY 2027, where do you hope to sit in that range?

We have provided guidance Carl that we're expecting to be in the midpoint of that range, but the wider payout ratio just gives us flexibility, and given the nature of the environment that we're in, we think that's prudent.

Thanks guys, that's all from me.

Thanks Carl.

Thank you Nikki and Evan. Just on the finance cost reset, there's a big jump in finance costs by 110 basis points between FY 2026 and FY 2027.

Looking into 2028-2029, it's still going up, but looking a little less than the big jump we're seeing now. Is it fair to say that you're expecting operational earnings to outpace that headwind of finance costs into 2028 and 2029?

I know you're not guiding those numbers, but is this reset in 2027, is that expected to be more 2027 issue and not move into 2028-2029? That's

exactly right Howard. We're looking at a near-term reset in relation to the interest expense so that we can create medium to long-term growth going forward.

Great, thanks a lot. Just a second question, which comes up regularly on self-storage, is the link between residential housing activity and turnover of houses as a driver for self-storage demand.

I know it's more diversified than that. How would you answer a question for those that are saying we're under pressure here in this residential market and activity is slowing, how is that impacting your business operationally?

Howard, look, residential turnover is definitely a factor, it's a fairly large factor, but as you've mentioned, it's one of many factors. You could arguably say we're in one of the very worst markets for residential turnover ever.

It does obviously provide us with a potential future tailwind as that pent-up demand changes, but in the short term, we do see that as a cyclical headwind that is affecting the business.

Grateful. Thank you guys for the presentation.

Thanks Howard.

Oh, good morning. Just FY 2027 earnings and distributions obviously a big miss versus where market expectations were.

Just wondering if you sort of updating the market around where your trajectory was heading as part of the internalisation?

Richard, when we were doing the internalisation we hadn't yet sat down and updated all our budgets and done our budgeting for the year ahead. The right figures and what was available for us at the time we updated.

We were still discussing because there's obviously many ways for us to manage our interest rates and our interest rate hedge book and those decisions were only made recently as we look forward and set the strategy for the year ahead.

I think the other thing Richard to focus on is when we came out with our results at the half year and also at the full year last year, you saw a rising interest rate environment based on a certain amount of drawn debt hedged then. We've invested over $260 million in the last year in relation to our developments and acquisitions and those assets coming online.

You really had three parts to the headwind. One is obviously the hedges rolling off that has been forecast for a long period of time.

Two is the increase in base rates that have happened over the last year and how that reflects into the curve, we've had three rate rises. Then the third one is just the sheer amount of drawn debt going forward.

There's numbers there that could be calculated unless the pace of the acquisitions and the pace of our investment pipeline wasn't understood.

Evan can you give us a guide as to where you see the ICR for FY 2027?

No, ICR is going to come down from 3.3, but it's still comfortably above that bad two number. We're looking at a approximate mid-two handle at this moment in time.

Thank you.

Morning Nikki and Evan. Just noting the tough macro conditions that you flagged, I was wondering whether you could give us a bit of an update on how you're seeing or thinking about let-up times at the moment for the parts of the development portfolio that's been recently delivered and sits at that lower end of occupancy?

Yeah. Murray, I think what's interesting is while we're seeing a slowdown in move-ins and market activity, it's almost like people are staying more put because we've actually seen a decrease in move-outs as well.

It's not affecting our new developments and it's certainly not affecting the rate at which we're letting up. Now we ascribe that partly towards the locations that we've chosen and the quality of the assets, but also that the consumer is more rate-aware, and traditionally when you're leasing up assets, you do discount more to get those assets filled up quickly.

We may see towards the sort of later end of the fill-up when we're trying to get the rate and pulling the rate lever again, we may see some challenges there, but we definitely not seeing any change or big change in terms of let-up of the new assets being developed. There's a few of them where the assets are much larger, we expect those to fill up over a slightly longer period, but it's not because we're converting square metres of those new assets at a different pace.

They feel a little immune from the macros at the moment because you're right that that's almost the first place you'd expect to see it.

Would you be able to quantify rough timing that you're seeing at the moment in terms of, I suppose, getting from zero to 50 and then 50 up into those 70s and 80s?

I guess

what your expectations are in terms of number of years?

We look at zero to 50 is just over the one-year mark. We're sitting between 40 and 50 in the first year and we don't expect that to change.

It's the two to three-year mark that we are hitting the 80%, probably a little closer to the three-year mark, and then we start pulling the rate lever more strongly so we bubble between that 80 before we get to our sort of fully occupied 90 over the next year or two.

Thanks. Then just last one if you wouldn't mind.

Would you be able to tell us where the Auckland portfolio sits from an occupancy perspective, or I suppose just the broader New Zealand portfolio, and how long you expect that to re-stabilise post the refurb?

Across the five stores that were affected, they got down to sort of mid-60s in terms of occupancy and April-May was the peak bottom of those. I can get the figure for overall New Zealand.

We can get that and send that through to you Murray, but yeah, one of the challenges in New Zealand is going to be you are filling those stores up in a tighter and more competitive macro environment, so that we've got the space now and we're free to fill it out, but it will happen over time because of the challenges in the broader market.

Got it. Thanks Nikki.

Good morning, Nikki. Could you just talk about what happened for the five affected assets in New Zealand?

Just what brought about the disruption to the cash flow and the capital works program?

Yeah. We had an incident at the beginning of last year where a significant weather event affected the roof on one of our assets.

Out of sort of an abundance of caution, we then went and checked every single one of our assets to see if that risk was inherent in any of those other assets, and we identified five stores where there were potentially issues that we needed to go and rectify. What that required is going into a large number of units and checking roof purlin works and the requirement of getting permission from the customer, access, moving customers in and out.

I think the logistics of that we probably underestimated, and started affecting us in sort of August when we were starting with the first store. We thought we could do it quickly and get through it.

We had a number of issues in the execution of that towards the end of the year and early this year, and eventually pulled new contractors on site and managed the program to get to where we were in May. It just ended up being a far trickier exercise than we expected.

Not because the actual structural work was that complicated, it was more because of the logistics of the customers and how you move them in and out and around in order to get that work done.

Just on the accretion from the internalisation, how much of the $7 million benefit to cash flow is reflected in the operating earnings?

None for FY 2026 obviously, because this only happened 30 June. For FY 2027, we're going to have that $7 million, approximately $2 million go through the investing lines and $5 million go through operating P&L as one.

Does all of the $7 million flow through to operating profit?

No, $5 and a bit million will flow through to operating profit and the other $2 million will reflect future development valuation uplifts going forward.

Thanks guys.

Thanks Ben.

Hello Larry.

Thank you. I'll maybe just Murray to close off on your question.

New Zealand occupancy is at 80 86%. That's for the whole portfolio across New Zealand.

Larry's actually sent through the written questions. He's obviously had some technical issues.

Larry's question was just, what is the impact of the new stores opening in FY 2027 on operating cash flow? The way we're seeing operating cash flows, we're seeing income receipts grow quite a lot into FY 2027 as these stabilising assets come online, as well as the fact that our maturing assets continue to grow.

Surprisingly, we're not seeing operating expenses grow that much because we're saving on the internalisation. It's that interest expense line which will offset, more than offset both of those lines, and so we see operating cash flow reduced next year.

That's all the questions we can see online.

If there aren't any further questions, then, yeah, we look forward to catching up with many of you over the coming days and weeks.