Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — Shareholder Meeting (November 2008)
37 slides from Cedar Woods Properties's shareholder meeting presentation, Nov 7, 2008
Slide 1: AGM Presentation and Chairman's Address cover letter
For personal use only 7 November 2008 Australian Securities Exchange Exchange Centre, Level 4, 20 Bridge Street, Sydney NSW 2000. Dear Sir / Madam, AGM PRESENTATION AND CHAIRMAN’S ADDRESS Please find attached our AGM presentation and Chairman’s address for release to the market. Yours faithfully, Pa
Slide 2: 2008 Annual General Meeting
For personal use only 2008 ANNUAL GENERAL MEETING 1
Slide 3: Presentation outline
Presentation outline For personal use only ¾ Current environment ¾ Highlights ¾ 2008 results ¾ Property portfolio ¾ Residential market ¾ Outlook 2008 Annual General Meeting 2
Slide 4: Current Environment
Current Environment For personal use only ¾ Financial markets upheaval ¾ Property markets impacted ¾ Focus on certainty of funding ¾ DRP has strengthened balance sheet ¾ Cedar Woods well placed to prosper as conditions improve 2008 Annual General Meeting Chairman’s Speech 3
Slide 5: Chairman's Address – 2008 AGM
7 November 2008 Chairman’s Address – 2008 AGM For personal use only Before I move into the details of the company’s activities during FY2008, I thought it important to depart from my usual practice not to comment on our current market price and to make some comments about the events impacting the fi
Slide 6: Chairman's Address (continued)
We have reviewed our current strategies and consider they are appropriate in this difficult environment. However, let me put on record difficult economic environments often provide extraordinary opportunity. May I remind you, company makers such as Port Mandurah and Mariners Cove were bought in diff
Slide 7: Highlights
Highlights For personal use only ¾ Record profits and dividends in FY2008 ¾ Strong pre sales from Melbourne projects ¾ Selected as joint venture party on two State Government projects ¾ Three year evergreen funding facility in place until September 2011 2008 Annual General Meeting As you are aware,
Slide 8: Operating Results
OPERATING RESULTS For personal use only FY2008 FY2007 $m $m Revenue 81.9 90.0 9% Growth in profits and dividends Profit before income tax 29.0 26.8 8% Dividends (cents) 25 20.0 expense 20 Profit ($m) 15.0 15 10.0 Net profit after 10 16.2 18.6 20.6 12.4 5.0 tax attributable 5 10.3 20.6 18.6 11% 0 0.0
Slide 9: Earnings Growth versus Target
EARNINGS GROWTH versus TARGET For personal use only 40 ¾ Consistent growth of 10% pa 35 30 25 ¾ Top half of industrial company cents 20 37.3 performance 33.9 15 30.3 10 20.2 23.3 ¾ Meets Corporate objective 5 0 2004 2005 2006 2007 2008 EPS 10% pa cumulative growth 2008 Annual General Meeting Some ti
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS Jun Jun For personal use only 2008 2007 ¾ Total assets increased to $185.0m due to investment in inventory during FY2008 Total assets $m 185.0 155.6 ¾ Gearing expected to drop within target Net bank debt $m 81.9 65.9 range in FY2009 Shareholders’ ¾ Apartments funded by limited o
Slide 11: Dividend Policy
DIVIDEND POLICY For personal use only ¾ Maintain current balance 20 60.00 between interim and full year 18 16 50.00 dividend – approximately 40 / 14 40.00 cents 60 12 % 10 30.00 8 6 20.00 ¾ 50% net profit plus distributed 4 10.00 reserves for full year 2 0 - 2004 2005 2006 2007 2008 ¾ Dividend reinv
Slide 12: Property Portfolio
PROPERTY PORTFOLIO BANBURY VILLAGE For personal use only CARINE CARLINGFORD BANBURY VILLAGE WILLIAMS LANDING HARRISDALE WELLARD WATERLINE 2008 Annual General Meeting Projects are well located in both the Melbourne and Perth markets. 9
Slide 13: Project Life - Perth
PROJECT LIFE - PERTH For personal use only FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Rivergums Cambridge Waters Mariners Cove Mandurah Country Club Kestrels Waterline Helena Valley The Jetty Port Mandurah (Sutton) Forrestdale Cedar Woods Wellard Pinjarra Carine Harrisdale Lots U
Slide 14: Residential – Built Form
RESIDENTIAL – BUILT FORM For personal use only Halls Head Golf Course 2008 Annual General Meeting Waterline Apartments • Construction of the apartments was completed in May 2008 and a Dome café will soon open on the ground floor. • The Mandurah market has slowed considerably, however we are confiden
Slide 15: Residential – The Landings, Mariners Cove
RESIDENTIAL For personal use only 2008 Annual General Meeting The Landings, Mariners Cove • The Landings is a built form project within the Mariners Cove canals and will set a benchmark building standard for the estate. • Construction of the first 8 houses commenced in October 2007 and completion is
Slide 16: Residential – Helena Valley
RESIDENTIAL For personal use only 2008 Annual General Meeting Helena Valley • Located approx 16km east of the Perth CBD and only 10 minutes away from Guilford, Midland and Perth airport. • 8 Ha landholding yielding 76 lots • Strong pent up demand – pre – release well received by the market. • Commen
Slide 17: Residential – Rivergums
RESIDENTIAL For personal use only 2008 Annual General Meeting Rivergums • 140ha project located in Baldivis 46kms south of Perth. • 470 lots already sold. • Stage 1 - 5 sold out. • Stage 7 - under construction with stages 6 & 7 now selling. • Project life of 10 years. • HIA Greensmart accredited est
Slide 18: Emerald Park
For personal use only 2008 Annual General Meeting • Emerald Park is the land owned by our Syndicate company, Cedar Woods Wellard Limited, which is managed by Cedar Woods Properties Limited, and in which we have a 25% shareholding. • 48 hectares to yield more than 600 residential lots within 10 Stage
Slide 19: New Projects – Carine
NEW PROJECTS For personal use only 16km drive from Perth CBD Carine 2008 Annual General Meeting Carine • The planned redevelopment of a former TAFE site in Perth’s middle northern suburb of Carine is the company’s first project to be conducted in conjunction with the Western Australian state governm
Slide 20: New Projects – Harrisdale
NEW PROJECTS For personal use only Harrisdale Ranford Rd Rd n to ar W 20km south east of Perth CBD ht rig W d R 2008 Annual General Meeting Harrisdale • Following on from Carine, Cedar Woods was awarded its second joint venture land development with the Western Australian state government, in this c
Slide 21: Project Life - Melbourne
PROJECT LIFE - MELBOURNE For personal use only 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Carlingford Williams Landing Banbury Village 2008 Annual General Meeting Turning now to our Melbourne projects, these are also well located with substantial project lives. 18
Slide 22: Melbourne Projects
MELBOURNE PROJECTS For personal use only 2008 Annual General Meeting In April this year, we launched our much anticipated redevelopment of the Laverton airfield. 19
Slide 23: Williams Landing
For personal use only 2008 Annual General Meeting Williams Landing • 275 Ha, 18km west of Melbourne CBD. • Includes 2,000 residential lots and 50Ha mixed use town centre. • We have substantial interest in the town centre from major retail and government tenants. • Town centre likely to provide asset
Slide 24: Williams Landing Town Centre
For personal use only Town Centre 2008 Annual General Meeting • Construction of residential neighbourhood commenced in July 2008. • Over 220 unconditional sales. • Display village with 50 homes from Melbourne’s leading builders. 21
Slide 25: Carlingford, Lalor
For personal use only 2008 Annual General Meeting Our second Melbourne project release this year was Carlingford, Lalor. 22
Slide 26: Carlingford
CARLINGFORD ¾ 55 hectare infill development site For personal use only ¾ First residential development in the area for several decades ¾ Includes parks and conservation reserves ¾ Convenient location, close to train station, High Street shopping strip, Epping Plaza, Northern Hospital, new Melbourne
Slide 27: Melbourne Projects
MELBOURNE PROJECTS For personal use only 2008 Annual General Meeting • Over 500 residential lots. • 130 unconditional sales to date. 24
Slide 28: Melbourne Projects – Banbury Village
MELBOURNE PROJECTS For personal use only 2008 Annual General Meeting • Our third Melbourne project is Banbury Village. • 9 Ha infill site, 6km from CBD. • Adjacent to train station and sports facilities. 25
Slide 29: Banbury Village
For personal use only 2008 Annual General Meeting Banbury Village • Permit lodged for first stage of development. • Development plan includes 200 townhouses and 100 apartments. • Construction is anticipated to commence in late FY2009. • Strong enquiry with over 600 people on the database. 26
Slide 30: Market Conditions
Med ian H ou se P rices fo r Melbou rn e and P erth (March 2000 to Ju ne 2008) 500.0 450.0 Median House Prics ($) 400.0 350.0 For personal use only 300.0 MARKET CONDITIONS 250.0 200.0 150.0 100.0 50.0 0.0 0 1 2 3 04 5 6 7 08 M 00 0 M 00 1 ar 2 ar 3 M 00 4 M 00 5 M 00 6 ar 7 Se 2 0 0 Se 2 0 0 Se 0 0
Slide 31: Market Drivers
MARKET DRIVERS Housing market balance: Australia For personal use only ¾ Underlying housing demand outstripping supply ¾ Record population growth & employment ¾ Tight rental market. Rents rising, vacancies trending down but easing Underlying Requirement for Housing vs Forecast Dwelling Starts - Aust
Slide 32: Population Growth
POPULATION GROWTH For personal use only Source: Australian Bureau of Statistics March 2008 (000) March 2008 (%) (inc. since Mar 07) (inc. since Mar 07) VIC 87.6 1.7 WA 54.2 2.6 AUS 336.8 1.6 2008 Annual General Meeting Population Growth • Strong population growth is expected to continue, driven by h
Slide 33: Boost for First Home Buyers
BOOST FOR FIRST HOME BUYERS For personal use only ¾ First Home Owners Grant increased to: $14,000 for established homes $21,000 for new homes + ¾ WA: Shared equity scheme & increased stamp duty concessions ¾ Vic: $3,000 - $5,000 First Home Owners Boost, & $3,000 Regional First Homes Owners Boost ¾ I
Slide 34: Market Outlook WA
MARKET OUTLOOK WA For personal use only ¾ Dwelling approvals down from the peak in 2006 ¾ Forecast for 2008/09 for Perth & WA is subdued 2003/04 2004/05 2005/06 2006/07 2007/08(f) 2008/09(f) 2009/10(f) 2010/11(f) Houses Units Total 2008 Annual General Meeting Market Outlook WA • Housing starts for 2
Slide 35: Market Outlook VIC
MARKET OUTLOOK VIC For personal use only ¾ Approvals trending upward ¾ Housing starts down in the current year but expected to move upward 2009/10 – 2010/11 2008 Annual General Meeting Market Outlook VIC • In Victoria, housing starts are forecast to increase by 13% over 2009/10 – 2010/11 (HIA). • Th
Slide 36: Company Outlook
COMPANY OUTLOOK For personal use only ¾ Melbourne projects substantially pre-sold ¾ Good early response to Helena Valley project ¾ Finance facilities in place ¾ Without improved market conditions, FY2009 profit substantially below FY2008 ¾ Good product range/locations – ready to participate in marke
Slide 37: Annual General Meeting
For personal use only 2008 ANNUAL GENERAL MEETING 34
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