Slide 1: FY24 Results Presentation
FY24 RESULTS PRESENTATION 23 AUGUST 2024 Abacus Group | FY24 Results Presentation 459-471 Church Street, Richmond VIC
Slide 2: Agenda
ABACUS GROUP FY24 RESULTS Agenda 01 Overview 02 Key financial metrics and capital management 03 Operating performance 04 Outlook and guidance Steven Sewell, Evan Goodridge, Steven Sewell, Steven Sewell, Managing Director CFO Managing Director Managing Director Abacus Group | FY24 Results Presentatio
Slide 3: FY24 Metrics
FY24 METRICS TOTAL ASSETS1 WEIGHTED AVG GEARING1 NET TANGIBLE OCCUPANCY3 GGGGG CAP RATE2 G ASSETS GGGGGG $2.6bn 6.50% 32.3% $1.76ps 94.2% 1.4% on FY234 79bps on FY234 90bps on FY23 STATUTORY LOSS FFO5 FFO PER SECURITY DPS LEASING DEALS7 $241.0m $81.3m 9.24cps 8.50cps 47,134sqm 3.0% on FY236
Slide 4: FY24 Highlights
99 Walker Street, North Sydney NSW FY24 HIGHLIGHTS Strong Office and Self Storage performance, with non-core asset sales continuing in the period Maximising Abacus Group’s income • Increased interest in Myer to 50% (up from 33%) PORTFOLIO COMPOSITION Ongoing consolidation • Divestment of two non-cor
Slide 5: Key Financial Metrics & Capital Management
KEY FINANCIAL METRICS & CAPITAL MANAGEMENT EVAN GOODRIDGE Abacus Group | FY24 Results Presentation 201 Elizabeth Street, Sydney NSW
Slide 6: Operating Earnings Summary
OPERATING EARNINGS SUMMARY $ millions FY24 FY232 Change Comments Office LFL FFO1 70.2 65.8 6.7% Driven by increase in occupancy and rent reviews Office non-LFL FFO1 14.1 19.0 (25.8%) Includes divestments of 33 Queen St, 187 Todd Rd and 63 Ann St Driven by rent reviews, partly offset by increased ins
Slide 7: FY24 Balance Sheet Allocation
FY24 BALANCE SHEET ALLOCATION 30 June 2024 (pro forma1) 30 June 2023 (excluding discontinued Self Storage segment2) $ 2.6bn 59% OFFICE $1.5bn 15% RETAIL $0.4bn 16% ASK $0.4bn 10% OTHER $0.3bn Total Assets $ 2.5bn 67% OFFICE $1.7bn 19% RETAIL $0.5bn 14% OTHER $0.3bn Total Assets Office $1,510m 14 pro
Slide 8: Capital Management
CAPITAL MANAGEMENT Disciplined approach with sufficient liquidity and covenant headroom NTA1 Total assets2 Acquisition capacity2,3 FY24 avg. cost of debt4 Gearing2,5 Debt term to maturity $1.76ps $2.6bn >$325m 4.4% 32.3% 3.4yrs Debt expiry profile Interest rate hedging – drawn Hedging profile expiry
Slide 9: FY24 Valuation Update
FY24 VALUATION UPDATE Bond yields continue to impact cap rates Investment Portfolio Office Retail Other1 ASK No. of 30 June 14 assets 3 assets 2 assets n/a properties Carrying 30 June $1,510m $444m $253m1 $419m value Investment property valuation - $225m - $40m - $10m n/a movement since FY23 - 14.2%
Slide 10: Operating Performance
OPERATING PERFORMANCE STEVEN SEWELL Abacus Group | FY24 Results Presentation 459-471 Church Street, Richmond VIC
Slide 11: Office Snapshot
OFFICE SNAPSHOT Portfolio of 14 Office assets valued at $1.5 billion1 OCCUPANCY2 WALE2 LEASING DEALS LFL RENT GROWTH2 93.4% 3.7yrs 94 4.7% LFL FY236: 93.0% LFL FY236: 3.9yrs FY23: 94 FY23: 1.7% WACR A-GRADE BUILDINGS3 TENANT CUSTOMERS4 SME CUSTOMERS4,5 6.43% 78% 329 64% FY23: 5.59% FY23: 76% FY23: 3
Slide 12: A-Grade Office Portfolio
A-GRADE OFFICE PORTFOLIO A-grade portfolio in premium locations underpinned by a diversified SME customer base Market profile: Geography1 Melbourne Brisbane CBD Sydney CBD & Fringe Other CBD & Fringe & Fringe 96% exposed to Asset profile: Grade1,2 the Eastern Seaboard1 A B+ B Asset profile: Life cyc
Slide 13: Office Leasing Metrics
OFFICE LEASING METRICS Strong leasing spreads achieved in a challenging office environment 40,548 32% 11.4% 3.6% $750psm sqm leased1 average gross leasing spreads average rent average net face incentive review rent2 FY23: 44,112sqm FY23: 31% FY23: 6.7% FY23: 3.9% LFL FY233: $719psm 65% new 34% on ne
Slide 14: Office Leasing Expiry
OFFICE LEASING EXPIRY1 Underpinned by geographical diversity NSW QLD VIC SA ACT 34% 62% of vacant area 19% spec fitted 14% 14% 12% 6% 1% Vacant Short Term FY25 FY26 FY27 FY28 FY29+ Major Vacancies: Major Expiries: Major Expiries: Major Expiries: Major Expiries: Major Expiries: Major Expiries: 452 Jo
Slide 15: In Focus: 201 Elizabeth & 77 Castlereagh
201 Elizabeth Street, Sydney NSW IN FOCUS: 201 ELIZABETH & 77 CASTLEREAGH Active asset management initiatives have resulted in significant leasing outcomes since HY241 77 Castlereagh Street 201 Elizabeth Street Leasing deals Occupancy Incentives Leasing deals Occupancy Incentives 3,435 sqm 95.0% 37.
Slide 16: Retail and Self Storage Investments
RETAIL AND SELF STORAGE INVESTMENTS $0.4 billion1 invested in 3 Retail assets (2 centres and 1 CBD asset) and $0.4 billion1 of Self Storage investments OCCUPANCY WALE LEASING DEALS LFL RENT GROWTH WACR AVG. RENT REVIEW RETAIL 96.1% 5.8yrs 39 6.3% 6.58% 5.1% FY23: 95.2% FY23: 5.8yrs FY23: 45 FY23: 3.
Slide 17: ESG: Focus
ESG: FOCUS Vision: To concentrate on select real estate sectors that deliver long term and sustainable outcomes through active investment, asset and development management and a strong focus on customer and brand awareness Minimising our environmental Emission intensity: impact through conservation
Slide 18: Outlook and Guidance
OUTLOOK AND GUIDANCE STEVEN SEWELL Abacus Group | FY24 Results Presentation The Oasis, Broadbeach QLD
Slide 19: Leveraging the Platform
LEVERAGING THE PLATFORM Positioning the business to explore further platform opportunities PLATFORM Asset management Development management Funds management PORTFOLIO1 Operating capability across a diversified asset base valued at $5.1 billion2 Office 59% 183 Retail 15% Assets ASK 16% Office Self St
Slide 20: Outlook and Guidance
OUTLOOK AND GUIDANCE Owning and managing an Australian eastern Abacus Group FY25 Guidance seaboard focused Active asset management and diversified leasing strategies • Abacus Group FY25 distribution guidance of 8.5 cents per Commercial portfolio to drive income growth throughout our portfolio securi
Slide 21: Contents
CONTENTS STATUTORY EARNINGS RECONCILIATION SLIDE 22 PROFIT AND LOSS OVERVIEW SLIDE 23 BALANCE SHEET OVERVIEW SLIDE 24 CAPITAL TRANSACTIONS SLIDE 25 DEBT FACILITIES SLIDE 26 INVESTMENT PORTFOLIO METRICS SLIDE 27 COMMERCIAL PORTFOLIO SLIDE 28 ESG: TRACKING OUR PROGRESS SLIDE 29 GLOSSARY SLIDE 30 IMPOR
Slide 22: Statutory Earnings Reconciliation
STATUTORY EARNINGS RECONCILIATION Performance metrics ($m) FY24 Term Definition Net profit attributable to ABG securityholders (241.0) FFO is in line with the PCA’s definition and comprises net profit/loss after tax attributable to stapled security holders, calculated in accordance Discontinued oper
Slide 23: Profit and Loss Overview
PROFIT AND LOSS OVERVIEW Performance metrics ($m)1 FY24 FY23 Comments Rental income 157.9 157.9 Rental growth offset by divestments of two assets Fee, finance and other income 20.9 4.5 Increase due to ASK fees received from August 2023 Share of profit from equity accounted investments 22.7 7.1 Incre
Slide 24: Balance Sheet Overview
BALANCE SHEET OVERVIEW $ millions FY24 Investment properties $1,885.0m PP&E, equity and other investments, financial and other assets $621.3m Loans $55.9m Cash and cash equivalents $23.5m Goodwill and intangibles $32.4m Deferred tax assets $8.2m Total assets $2,626.3m Interest bearing liabilities $9
Slide 25: Capital Transactions
CAPITAL TRANSACTIONS Portfolio optimisation continues with divestments achieved in a challenging market Acquisitions completed Divestments completed in Net divestments in in FY24 FY24 FY24 $82.5m $168.8m1,2 $86.3m Asset Value FY24 Acquisitions 83 Walker Street, North Sydney3 $10.5m Myer, Melbourne4
Slide 26: Debt Facilities
DEBT FACILITIES Capital management metrics FY24 Comments Total bank debt facilities $1,183m Total bank debt drawn $904m Term to maturity 3.4yrs Interest rate hedging 76% Weighted average hedge maturity 2.6yrs Average cost of debt - drawn 4.4% Average cost of debt - fully drawn 4.2% Group gearing 33.
Slide 27: Investment Portfolio Metrics
INVESTMENT PORTFOLIO METRICS Investment portfolio sector diversification Portfolio metrics FY24 Office Retail ASK Other1 Total Value ($m) 1,510 444 419 253 2,626 Office 57% No. of assets 14 3 - 2 19 Retail 17% NLA2,3 (sqm) 135,476 56,519 - - 191,995 ASK 16% Other 10% WACR (%) 6.43 6.58 - - 6.46 Occu
Slide 28: Commercial Portfolio
COMMERCIAL PORTFOLIO $2.0bn portfolio, 96% exposed to the Eastern Seaboard 23% QLD $464 million Office 3 $236m 19 Retail 2 $228m 42% NSW $866 million Assets QLD Office 5 $788m 5 Other1 2 $78m SA 3% ACT 1 NSW $57 million ACT 7 Office 1 $57m 1 4% SA VIC 28% VIC 5 $563 million $82 million Office 1 $82m
Slide 29: ESG: Tracking Our Progress
ESG: TRACKING OUR PROGRESS FY19 FY20 FY21 FY22 FY23 FY24 Net zero EMISSIONS On track to achieve net zero emissions 2030 by 2030 (Scope 1 & 2) 36% improvement Scope 1 & 2 GHG 0.080 0.069 emissions intensity ENERGY 0.061 0.059 (t/sqm) 0.053 0.051 From FY19 Scope 1 & 2 GHG emissions intensity1 0.7 impr
Slide 30: Glossary
GLOSSARY TERM DEFINITION TERM DEFINITION ABG Abacus Group KL/SQM Kilolitres per square metre ASK Abacus Storage King LFL Like for like ASX Australian Securities Exchange NABERS National Australian Built Environment Rating System CBD Central business district NLA Net lettable area CPI Consumer price
Slide 31: Important Information
IMPORTANT INFORMATION The information provided in this document is general, and may not be suitable for the specific purpose of any user of this document. It is not financial advice or a recommendation to acquire Abacus Group securities (ASX:ABG). Abacus Group believes that the information in this d