Infratil Limited · NZX:IFT
Infratil — Metlifecare — FY2016 Earnings Presentation
39 slides from Infratil's earnings presentation, Aug 24, 2016
Slide 1: Metlifecare FY16
Metlifecare FY16 24 August 2016
Slide 2: Contents
Contents #1 FY16 Results Highlights 3 #2 Development & Growth 13 #3 Operating Performance 19 #4 Summary 25 #5 Appendices 28 Please refer to the definitions section on page 37 of the presentation for additional detail on the non-GAAP financial measures contained within this presentation. A glossary o
Slide 3: 1. FY16 Results Highlights
Executive Team 1. FY16 Results Highlights
Slide 4: FY16 Results Highlights
1 FY16 Results Highlights Record sales of new and existing occupation right agreements in both volume and value. Strong platform created for future development growth. Continued momentum and market leadership in our upper Results Highlights North Island stronghold. Underlying profit $66.1m,
Slide 5: FY16 Results: Financial Highlights
1 FY16 Results: Financial Highlights FY16 FY15 Net profit after tax (IFRS) ($m) 228.7 122.7 Net operating cash flow ($m) 130.0 83.3 Net operating cash flow excluding development 50.5 34.4 sales ($m)1 Underlying profit ($m)2 66.1 52.4 Net assets per share ($) 5.32 4.29 Net profit after tax up 86% d
Slide 6: FY16 Results: Operating Highlights
1 FY16 Results: Operating Highlights FY16 FY15 Development sales (units) 138 87 Resales (units) 430 403 Total development sales and resale (units) 568 490 Embedded value per unit ($’000)1 208 155 Development sales volumes up 59%. Resales volumes up 7% with a 37% increase in realised resale gains
Slide 7: FY16 Results: Development Highlights
1 FY16 Results: Development Highlights FY16 FY15 New units completed 69 133 New care beds completed 36 - Total units & beds completed 105 133 Development landbank (units) 1,386 1,578 Development landbank (care beds) 387 502 Total development landbank (units & care 1,773 2,080 beds) 138 units settl
Slide 8: FY16 Results: Underlying Profit
1 FY16 Results: Underlying Profit Underlying Profit 70.0 60.0 10.1 50.0 8.5 7.3 40.0 8.1 $'m 30.0 2.6 20.0 26.0 31.3 46.5 10.0 19.5 27.6 12.7 12.6 9.5 0.0 (10.0) (3.9) (1.9) FY12 FY13 FY14 FY15 FY16 Operational Performance Realised Resale Gains Realised Development Margin Underlying profit up 26%.
Slide 9: FY16 Results: Operating cash flows
1 FY16 Results: Operating cash flows Operating cash flows per share 0.70 0.60 Cents per share 0.50 0.40 0.30 0.20 0.10 0.00 -0.10 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Operating Cash flow per share Operating Cash flow per share excluding Development Sales Good growth in operating cash flows and
Slide 10: FY16 Performance Highlights
1 FY16 Performance Highlights Underlying Profit Resale & Development Sales Volume 70.0 600 60.0 500 138 113 50.0 61 87 400 40.0 $m 300 36 66.1 30.0 52.4 200 424 397 403 430 46.0 20.0 33.9 294 100 10.0 18.2 0.0 - FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Underlying Profit Resale Development S
Slide 11: FY16 Portfolio
1 FY16 Portfolio The majority of the Metlifecare portfolio is located in high growth Portfolio areas of Auckland, Bay of Plenty and Waikato. Located in High These areas have delivered significant property price growth over Growth Areas the past 12 months. Location by Value Location by Units 1% 2
Slide 12: FY16 Portfolio
1 FY16 Portfolio THE ORCHARDS GREENWICH GARDENS 54 units 27 units Metlifecare Portfolio Statistics CRESTWOOD POWLEY 135 units 80 units HIGHLANDS 7 SAINT VINCENT BAYSWATER 24 Villages (14 in Auckland) 199 units 93 units 232 units PAKURANGA THE POYNTON GREENWOOD PARK 87 units 257 uni
Slide 13: 2. Development & Growth
Papamoa Beach Village, Papamoa 2. Development & Growth
Slide 14: Development & Growth
2 Development & Growth Development Landbank The Orchards Coastal Somervale Oakridge Papamoa The Avenues Greenwich Gardens Red Beach Albany Crestwood Pinesong 0 100 200 300 400 500 600 Units Care Beds Development land bank of 1,773 units and beds. Completed 105 new units and beds during FY16. D
Slide 15: Development & Growth
2 Development & Growth UNITS & BEDS UNDER CONSTRUCTION 48 Greenwich Gardens 104 69 Somervale 16 The Orchards 42 0 20 40 60 80 100 120 Beds Under Construction Units under Construction Total of 279 Units and Beds under construction (162 units and 117 beds) at 30 June 2016. 55 apartments at Greenwi
Slide 16: Development Progress
2 Development Progress Papamoa Beach Village, Bay of Plenty 16
Slide 17: Development Progress
Greenwich Gardens, Auckland 2 Development Progress 27 Villas completed and occupied 17
Slide 18: Development Progress
2 Development Progress The Orchards, Auckland • Nearing completion. • All completed units occupied. • 52% of the units under construction have applications in the final stage.
Slide 19: 3. Operating Performance
The Orchards – Glenfield, Auckland Cox House Cafe 3. Operating Performance
Slide 20: Operating Performance
3 Operating Performance Resales Occupancy 98% 97% 96% 95% 94% 97% 97% 93% 96% 96% 92% 93% 91% 90% FY12 FY13 FY14 FY15 FY16 Resales occupancy remains high with increased stock returns resulting in higher resale volumes. Including stock that is currently under contract, total occupancy increases t
Slide 21: Operating Performance
3 Operating Performance DMF & Realised Resale Gain per Settlement 200 180 160 140 66 120 61 $'000 100 56 55 80 44 60 111 40 69 69 81 66 20 - FY12 FY13 FY14 FY15 FY16 Realised Resale Gain DMF per Settlement Increased focus is being placed on yield management to capture property price growth in the
Slide 22: Operating Performance
3 Operating Performance Embedded Value 250 200 150 128 $'000 81 100 54 61 60 50 64 69 74 80 53 0 FY12 - FY13 FY14 FY15 FY16 Merged DMF Resales Gains Embedded value per unit continues to grow and has increased by 34% to $208k which is a positive for future realised resale gains and cash flow genera
Slide 23: Operating Performance
3 Operating Performance Residents • Resident satisfaction remained strong at 90%. • The average age of residents is 81.2 years old. • We track the length of stay for all unit settlements during a period and year. In the current period the average length of stay for units settled was: • ILUs and ILAs
Slide 24: FY16 Final Dividend
3 FY16 Final Dividend FY16 FY15 Dividend per share (cps) 4.0 3.0 Total dividend per share (cps) 5.75 4.50 The Metlifecare Board have declared a final dividend of 4 cents per share, unimputed. This represents a pay-out for the second half of approximately $8.5m. The total dividend paid for 2016
Slide 25: 4. Summary
Greenwich Gardens, Unsworth Heights Auckland 4. Summary
Slide 26: Summary
Summary Record sales of new and existing occupation right agreements in terms of volume and value. Strong platform created for future development growth. Summary Continue to focus growth in value-creating areas and build on our geographic market strength. Record underlying profit $66.1m, up
Slide 27: Questions
4 Summary QUESTIONS 27
Slide 28: 5. Appendices - Summary Financial Information
Waitakere Gardens- Auckland 5. Appendices - Summary Financial Information
Slide 29: Financial Performance
5 Financial Performance FY16 FY15 Profit & Loss ($m) ($m) FY16 revenue was 5% ahead of the pcp. Total revenue 106.2 101.5 The Fair Value movement Fair value movement of investment 237.2 121.2 was up 96% on the pcp property as a result of strong Joint Venture share of profit 0.4 1.0 property pric
Slide 30: Financial Performance
5 Financial Performance FY16 FY15 Underlying Profit before tax ($m) ($m) Net profit excluding non recurring items 228.7 121.7 Fair Value movement of investment property (237.2) (121.2) Loss on sale or Impairment on PP&E 3.0 1.3 Tax expense 15.0 10.8 Operational performance 9.5 12.6 Realised resale g
Slide 31: Financial Performance
5 Financial Performance FY16 FY15 Operating Cash Flow ($m) ($m) Development sales cash flows 79.5 48.8 Resales cash flows (realised resale gains) 46.5 31.3 Total sales and resales cash flows 126.0 80.1 Net operations performance 4.1 3.2 Interest paid (0.1) - Net operating cash flow 130.0 83.3 * The
Slide 32: Financial Performance
5 Financial Performance Operating Cash Flow FY16 ($m) FY15 ($m) Resident receipts 87.8 81.1 ORA development sales & resales 256.4 196.2 Payments to suppliers (84.1) (79.4) ORA repurchases (130.4) (116.1) GST 0.3 (0.6) Interest received 0.1 0.1 Interest paid (0.1) - Other Income - 2.0 Net operating c
Slide 33: Financial Performance
5 Financial Performance FY16 FY15 Balance Sheet ($m) ($m) Cash & other assets 25.2 17.0 Property plant & equipment 36.4 33.8 Investment properties 2,524.8 2,176.6 Total assets 2,586.4 2,227.4 Payables & other liabilities 31.3 26.9 Bank loans 80.8 60.1 Deferred membership fees 93.5 84.2 Refundable oc
Slide 34: Financial Performance
5 Financial Performance FY16 FY15 Investment Properties ($m) ($m) Development land 47.1 23.9 Investment properties under development 46.3 42.3 Completed investment properties 1,181.0 957.6 Total valuation 1,274.4 1,023.8 Plus: Refundable occupation right agreement amounts 1,437.4 1,346.1 Plus: Resid
Slide 35: Portfolio Summary, Definitions, Disclaimer & Glossary
Woodwork talents at Greenwood Park, Tauranga Portfolio Summary, Definitions, Disclaimer & Glossary 35
Slide 36: Portfolio Summary
Portfolio Summary Metlifecare Portfolio - 30 June 2016 Future Care Care Future Overall Villages ILU's ILA's SA's Total Total Care Total Beds Suites Units Total Beds Crestwood 121 14 135 41 41 22 22 198 Dannemora Gardens 201 201 201 The Orchards 54 54 36 36 42 42 132 Hibiscus Coast Village 150 71 48
Slide 37: Definitions
Definitions • Net operating cash flow excluding development sales removes the cash flows derived from the first time sale of occupation right agreements (as per page 31) of $79.5m from net cash flow from operating activities in the financial statements. Development sales cash flows are utilised to r
Slide 38: Disclaimer
Disclaimer • The presentation includes non-GAAP financial measures for development sales, resales and occupancy which assists the reader with understanding the volumes of units settled during the period and the impact that development sales and resales during the period had on occupancy as at the en
Slide 39: Glossary of Terms
Glossary of Terms • Development Sale(s): The first time sale of an ORA (new stock) • Resale: The sale of an ORA where a sale has previously been completed • Realised Resale Gain: The difference between the resale and repurchase of occupation right agreements • ORA: Occupation Right Agreement • ILU: