ISSUE NO.46 JULY 2024
Investor Update
Looking Back: a year of challenges and opportunities
As we close the FY24 financial year for PMG, I am pleased to present our inaugural Year in Review, which is a way of looking back at the past twelve months for PMG, celebrate our achievements and learnings, and look to the year ahead. This review marks a strategic evolution from our previous printed Annual Report, consolidating our insights into an easy-toread digital update that reflects our ongoing commitment to sustainability, innovation and continuous improvement.
This past year has required us to be strategic and prudent in navigating some of the most challenging economic conditions we’ve seen as a business, ensuring that PMG and our funds remain resilient throughout this market cycle and are well positioned to seize strategic opportunities as they arise.
Despite a challenging year — with prolonged transaction timelines and cautious market movements —our achievements speak volumes about our robust management capabilities, with a portfolio that remains 98%+ occupied, increased weighted average lease terms (WALT) and committed tenants and investors.
This is testament to our in-house team’s dedication to maintaining high operational standards and meeting challenges proactively, effective communication and stakeholder engagement as a property partner and fund manager of choice. In line with this, we’ve seen an uplift in Net Promoter Score with our investors and tenants, reinforcing their trust and confidence during these uncertain times.
I am also proud to highlight our commitment to sustainability and financial literacy. Initiatives like our solar partnership with Sunergise not only enhances the operational efficiency of our portfolio, but also aligns with our long-term vision of environmental stewardship.
Lastly, our people are the cornerstone of our success. We’ve been fortunate to have a capable and experienced Board and leadership team to help guide us through the challenges this year presented. We also celebrated significant staff milestones, with more than a third of our team having been with PMG for over five years. This is a testament to our enduring commitment to our staff and the culture we’ve cultivated and that we hope to continue to do as we grow.
Thank you for your continued trust and partnership. We look forward to continue working with you and delivering exceptional value to all our stakeholders.
The year of optimism
Over the past year, we've faced high inflation, rising interest rates, and a turbulent macroeconomic landscape.
With FY25 poised to be a turning point in the cycle, we have strategically positioned our funds with strong balance sheets, allowing us to remain active in acquiring high-quality real estate at a pivotal time in the property cycle, delivering long-term value to our investors. In line with this, we’ve raised close to $70 million in new capital, enhancing our secondary market liquidity and supporting the acquisition and growth of high-quality real estate assets.
The current macroeconomic environment remains volatile, influenced by geopolitical tensions and inflationary pressure. However, as economic indicators continue to signal that we're at the bottom of this current cycle and interest rates will likely reduce from late 2024 or early 2025 and beyond, we maintain an optimistic outlook and believe that our strategic shift a decade ago towards diversified property funds has positioned us to capitalise on the market's recovery.
In FY25, PMG remains committed to leverage our in-house expertise to maximise the growth of our portfolio and deliver regular returns for our investors, while creating highquality, sustainable spaces for tenants and fostering the wellbeing and development of our people.
PMG Group Highlights FY24
5 NEW ACQUISITIONS
$70M NEW CAPITAL
Raised close to $70 million in new capital
80+
Welcomed 80+ New Investers
$60M INCREASE IN AUM
NET CARBON ZERO
Recertified as a Toitū Net Carbon Zero business
FINANCIAL LITERACY AND SUSTAINABILITY INITIATIVES
Supporting communities through financial literacy and sustainability initiatives
5 NABERSNZ ACCREDITATIONS
5 NABERSNZ accreditations across PMG’s portfolio
PROACTIVE HEDGING
Proactive
SOLAR PARTNERSHIP WITH SUNERGISE
Celebrating Our People & Business
Our People
As part of our commitment to being an Employer of Choice, we were proud to share recent promotions within our team for FY25.
These promotions not only highlight individual achievements but also underscore our commitment to career and leadership development, and align with our core values of being genuine, invested and relationship focused.
Congratulations to the following staff on this welldeserved recognition of your commitment to continuous development, as well as PMG’s growth and success.
Connor Ennis Senior Funds Analyst
Connor joined PMG in April 2022 as a Funds Analyst, bringing with him a robust background in finance and engineering. A lover of numbers and problem-solving, Connor has a conjoint degree in Chemical and Materials Engineering and Commerce (Accounting and Finance) from the University of Auckland.
He started his career as a trader in capital markets in Sydney, Australia, specifically trading stocks and options on the Hong Kong and South Korean markets. This experience honed his numerical aptitude and risk management skills in a high-pressure environment.
After spending three years in Sydney, Connor returned to New Zealand with a keen interest in fund and investment management. He seized the opportunity to join PMG, aiming to apply his hands-on experience to his new role.
Connor is pursuing a Chartered Financial Analyst (CFA) certification, with a target completion date of 2025.
Doug Perry, Senior Management Accountant
Doug joined PMG in October 2020, bringing a wealth of experience in accounting and auditing. He holds a Bachelor of Management Studies (BMS) from Waikato University and is a Chartered Accountant (CAANZ).
Doug’s career includes roles as an auditor at Audit NZ, an accountant at BDO Tauranga, and a learning and development role at Public Trust, where he developed accounting training for frontline staff. This diverse experience has equipped him with a strong foundation in financial analysis and training.
At PMG, Doug applies his extensive knowledge and skills to support the finance team and manage key day-to-day and monthly accounting processes. His role is pivotal in ensuring accurate financial management and reporting and ensuring key insights to help PMG’s management team make decisions.
Helena van den Berg, Facilities Manager
Helena joined PMG in September 2021, with a strong background in administration and facilities management. She holds a National Diploma in Administration and General Management and a certification in Facilities Planning and Management, both obtained from the University of South Africa.
Her experience includes government-owned facilities management, integrated facilities management, and a brief stint in residential property.
At PMG, Helena will be taking over the reins from Jerry George, our Auckland and Whangarei Facilities Manager, who will be leaving our shores for his overseas experience. She will continue where Jerry leaves off, managing the portfolio of buildings, ensuring their smooth operation, compliance, and financial management, which includes overseeing health and safety, and capital and operating budgets.
Helena is also dedicated to sustainability, assisting the Head of Facilities and Sustainability with prioritised initiatives, leading the Toitū carbon certification process and annual audit process, and providing data for monthly board reports. Helena was part of the PMG Facilities team that won two FMANZ awards in 2023 – for Sustainability and Environmental Impact, and Team of the Year.
Helena is dedicated to growing in the fields of facilities management and sustainability, aligning her career with her passions.
Luke Kinney, Investments Manager
Luke joined PMG in October 2021 as a contractor before transitioning to a full-time role in October 2022. Initially working as a Property Analyst, he moved into the Investments team in February 2024 as an Investments Analyst, and now Investments Manager.
Luke holds a Bachelor of Commerce, majoring in Finance and Economics, from Victoria University of Wellington, and he became a Chartered Alternative Investment Analyst (CAIA) charter holder in 2019.
With nine years of experience in traditional and alternative investment management, Luke’s career includes roles at Nikko Asset Management and Milford Asset Management in New Zealand, and at the global hedge fund, Man Group, in London.
Luke’s responsibilities include assisting with the investment decision-making process, from initial scoping through to settlement. His responsibilities include collating research material and feasibility studies, conducting detailed financial modelling, and leading a robust due diligence process.
Matt White, Head of Asset Management
Matt joined PMG in January 2019 as an Asset Manager. He holds a Bachelor of Business Studies from Massey University, majoring in Valuation and Property Management with a minor in Finance.
Matt leverages his extensive experience to add value to the company’s investments and care for tenants, demonstrating a commitment to excellence in asset management. His background in the building industry, as a qualified carpenter and project foreman, equips him with a deep understanding of property management and project execution.
In his new role, Matt will lead the asset management function at PMG, taking a proactive approach to both project and property management. He brings a valuable combination of theoretical and practical expertise to the role, ensuring tenant satisfaction, leading PMG’s leasing strategy and enhancing the value of our assets on behalf of investors.
Simi Mukherjee, Head of Facilities and Sustainability
Simi joined PMG in 2015, bringing a wealth of experience working for organisations like Hewlett-Packard and Westpac.
Alongside managing a portfolio of multiple commercial buildings, Simi has developed a robust Facilities Management system at PMG.
After completing a Post Graduate Diploma in Business and Administration at Massey University, Simi worked in various roles in Auckland before realising her strong passion for Facilities Management.
Simi was awarded FMANZ Facilities Manager of the Year in 2020 and in 2023 won two awards – Sustainability and Impact award and Facilities Management Team of the Year under her leadership.
Her passion for sustainability has been instrumental in formulating a Sustainability framework and strategy for PMG, and her new role will see her continuing to drive this strategic focus area forward. She takes pride in her interpersonal skills, managing long-term relationships with her clients, team members and service providers.
Hayley Barnard, Asset Manager
Hayley joined PMG in 2020 and has over 15 years of experience in the commercial and industrial property sector. Hayley will take over from Matthew White in managing PMG’s Central North Island property portfolio. She will be responsible for overseeing the management, tenant relationships and financial performance of these properties and will continue to promote our PMG values.
Prior to immigrating to New Zealand, Hayley worked for JT Ross & Son for 10 years, which is the largest privatelyowned property company in South Africa.
FMANZ AWARDS
PMG Funds’ Facilities team won three awards at the 2023 Ngā Tohu FMANZ Awards in 2023.
We were honoured to receive awards in the following categories:
PMG Funds Facilities team - Facilities Management Team of the Year
PMG Funds - Sustainability & Environmental Impact Award
Massimo Crestanello, PMG Facilities ManagerEmerging Facilities Management Professional of the Year
HEALTH & WELLBEING
At PMG, we believe our people are our greatest asset. In line with this, we were excited to roll out or continue a number of employee benefits this year, aimed at supporting the health and wellbeing of our people.
This includes annual birthday leave, an extra week of leave for long-serving employees, wellness leave and initiatives, professional development opportunities, half day “Summer Fridays” and a flexible working policy.
ACTIVE MANAGEMENT
Driven by our experienced team, our active management strategy proved effective in navigating a challenging economic environment in FY24.
Our in-house property team worked closely with our tenants and partners to meet their changing needs, secure tenants to fill any vacancies, and ensure we continued to provide our investors with regular cash returns, despite the current market conditions.
Key metrics demonstrating the effectiveness of our approach include:
A like-for-like portfolio valuation increase of 0.3%.
A 7% increase in WALT, supporting value and longerterm stability of income.
• A transaction volume of over $100m* enabling growth despite the current market.
highlights (for the year ended 31 March 2024)
$550m+ Funds under management
$900m+ Assets under management 48 Properties under management
98%+ Occupancy⁴
6.0+ years Weighted average lease term⁴
165+ Tenants⁴
1Metrics as at 30 June 2024, based on unaudited management information. Occupancy and weighted average lease term metrics are based on PMG’s four retail funds only. Remaining metrics inclusive of all PMG managed funds.’
Sustainability
Since the implementation of our sustainability framework in 2017, PMG has been a key player in the commercial property sector’s drive for sustainable change, prioritising longevity and sustainability in our relationship-based, collaborative approach to property management.
Our sustainability framework covers all elements of ESG (Environmental, Social and Governance), with an overarching strategy to Lead, Inspire and Succeed.
Upcoming Events
Wednesday, 14 August
PMG Wholesale Funds AGMs
Thursday, 29 August
PMG Retail Funds AGMs
Download our full Sustainability Report for FY24 or visit pmgfunds.co.nz/pmg-sustainability-report
