eKourier July 2017

FEATURES Adding Value To Kennards Properties

W hy are Kennards properties valued? Each year one third of Kennards properties are valued by Independent Valuers. The reason Kennards properties are valued is to allow the banks to have an independent property value which is used as security for funds that are loaned to Kennards.

So simply put, every day what we do impacts the value of the centre.

Storage can access and at lower rates. The access to debt allows Kennards to grow through acquisitions and expansions. Factors that cause the value of a property to change include:

A rough calculation of the value of a property can be made by taking the profit and multiplying it by 10. So if the annual profit is $1 million, the value of the centre will be approximately $10 million. Therefore each $100k the profits increase at a centre, the value of the centre will increase approximately $1 Million. Team Members can impact the profita- bility in several ways – either increasing Revenue or reducing costs. We all impact these two levers every single day at our centres. If a new customer moves in at $500 per month, this is $6k over the year. This one customer would grow the value of the centre by $60k. If we multiply this across all of our centres – we see a significant lift in value of the portfolio. This is only from one new customer at each centre. Anthony Rous Chief Financial Officer

• Increased occupancy or pricing.

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• Government rezoning or other; govern- ment legislation.

The value of the properties gives Lenders more confidence when making decisions about dealing with Kennards

• Competitors coming or going.

• New roads, railways or transport networks.

• Costs at a centre changing such as labour, electricity, advertising, repairs and maintenance.

How we can impact the value of our properties?

The value of the properties gives lenders more confidence when making decisions about dealing with Kennards. When banks have better security they are able to lend money at lower rates. So the higher the value of Kennards properties the more funds Kennards Self ‘

• Increase occupancy • Adjust rates customers pay • Expenses at the centre • Profitability • Appearance of the centre

6 Kennards Kourier July 2017