Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — H1 FY2020 Earnings Presentation
26 slides from Cedar Woods Properties's earnings presentation, Feb 19, 2020
Slide 1: Half Year FY20 Financial Results
Half Year FY20 Financial Results 19 February 2020
Slide 2: About Cedar Woods: Company Overview
About Cedar Woods: Company Overview S&P ASX 300 property company; market capitalisation of ~$640m. Products: land estates, townhouses, apartments & commercial. 9400+ lots in pipeline; 34 projects across VIC, SA, WA, QLD. Track record of financial strength & performance with strong return met
Slide 3: About Cedar Woods: Purpose, Vision, Values
About Cedar Woods: Purpose, Vision, Values Our purpose & vision have interconnected objectives: Reliable & growing income streams for investors; Geography Quality housing or offices for customers; Vibrant communities for our customers to be part of; A high spirited and safe workplace for sta
Slide 4: About Cedar Woods: How we create value
About Cedar Woods: How we create value Geography Price Point 4
Slide 5: About Cedar Woods: Our Strategy
About Cedar Woods: Our Strategy To grow & develop our national Geography project portfolio, diversified by geography, product type & price point, so that it continues to hold broad customer appeal & performs well in a range of market conditions. Price Point 5
Slide 6: About Cedar Woods: Strategic Priorities – FY20 Progress
About Cedar Woods: Strategic Priorities – FY20 Progress Continued support from our 3 banks with facilities recently extended - ANZ, Bankwest & NAB; gearing at low end of target range; Significant capacity to fund growth. Geography Pivoted towards growth to capitalise on favourable buying conditions
Slide 7: Earnings growth: Recent Acquisitions
Earnings growth: Recent Acquisitions 5 sites acquired in past 18 months; 3 of them in 1H FY20: ‒ Wollert VIC (500 lots) Geography ‒ Hamersley WA (200 lots) - conditional ‒ Subiaco WA (apartments / townhouses) Disciplined, counter cyclical buying – favourable prices & terms Locations with stron
Slide 8: Financial: Performing through the cycles
Financial: Performing through the cycles A strong track record of consistent profitability & fully franked dividends 8
Slide 9: Financial: FY20 H1 Summary
Financial: FY20 H1 Summary Net Profit $10.2m Down 67% weighted to H2 as expected Total Revenue Presales Contracts Share Price $128.8m $340m Up 38% Down 5% 30 Jun 2019 to 31 Dec 2019 Down 37%, weighted to H2 as expected Earnings Per Share 12.7c Down 67% weighted to H2 as expected Settlements Net Bank
Slide 10: Financial: Balance sheet strength & access to funding
Financial: Balance sheet strength & access to funding 31 Dec 30 Jun 2019 2019 Total assets (book value) $644.7m $571.7m Net assets (equity) $377.8m $376.5m Net assets per share (book) $4.70 $4.70 Net bank debt $143.3m $105.3m Net bank debt to equity 37.9% 28.0% Net bank debt to total tangible assets
Slide 11: Our Portfolio: Summary
Our Portfolio: Summary 9,400+ lots/dwellings/units 34 projects 4 states - VIC, WA, SA, QLD Land estates, townhouses, apartments & commercial projects High amenity locations & often located adjacent to train stations Projects positioned as quality developments within their Price Point res
Slide 12: Our Portfolio: Diversified by product & location
Our Portfolio: Diversified by product & location Location Product Type # lots/homes/offices # lots/homes/offices Commercial SA Townhouses 1% 15% WA Geography 9% Land Apartments QLD 70% 9% 20% 56% VIC 20% State Lots/units % Product Lots/units % SA 1,454 15% Commercial * 136 1% QLD 862 9% Townhouses 8
Slide 13: Market Conditions: Sector drivers
Market Conditions: Sector drivers Macro conditions remain supportive Stimulus also supporting market Two interest rate cuts, pushing mortgage rates to record lows, & the prospect of further falls; Population GDP growth2 Unemployment3 growth1 APRA’s relaxing of mortgage stress tests, improving av
Slide 14: Market Outlook & Cedar Woods Experience
Market Outlook & Cedar Woods Experience Conditions expected to improve across most markets Market Outlook Melbourne Brisbane Perth Adelaide Strong population growth driving demand Strong population growth–especially from interstate Improving employment conditions- mining Submarine & shipbuilding is
Slide 15: Our Projects: Western Australia
Our Projects: Western Australia 15 projects & more than 5,200 lots / dwellings Projects catering for a range of buyer types Land subdivision, townhouses & apartments 2 new developments delivering first contributions in FY21 (Solaris & additional Ariella land) Cedar Woods has strong leverag
Slide 16: Our Projects: Western Australia highlights
Our Projects: Western Australia highlights Ariella (Brabham) 880 lots, in north-east growth corridor Strong sales continuing Price range $175,000 - $320,000 Increased project life extended to FY25 with acquisition of Ariella additional 20 hectares in FY19 Ariella Salvado Road, Subiaco 1.44
Slide 17: Our Projects: Victoria
Our Projects: Victoria 13 projects (6 currently at Williams Landing) More than 1,800 lots / dwellings / offices + 17 hectares of commercial / apartment sites Land subdivision, townhouses, apartments & commercial projects Acquired 43 Ha, over 500 lots in Wollert in H1 FY20 17
Slide 18: Our projects: Victoria
Our projects: Victoria Williams Landing Up to 10 years remaining project 101 Overton Rd life - strata office Diverse mix of land, townhouses, apartments & commercial developments Numerous projects underway (apartments, commercial, residential lots) including 2 office developments 101 Overton S
Slide 19: Our Projects: Queensland
Our Projects: Queensland Ellendale (Upper Kedron) 228 ha site, 12km west of Brisbane CBD 900 lots now approved, over 360 lots now sold Price range $266,000 – $550,000 Market conditions have improved in H1 FY20 Several stages settling Ellendale in H2 FY20 Ellendale Wooloowin 3.7 ha site,
Slide 20: Our Projects: South Australia
Our Projects: South Australia Glenside 17ha, 3km from Adelaide CBD Around 1,000 dwellings - townhouses & apartments 8-10 year project duration 59 townhouses settled, first apartment building 80% sold First apartment building settlements mid-2020, second building designed Glenside Three i
Slide 21: Outlook
Outlook Favourable sector drivers - strong population growth, low unemployment, low interest rates Established housing improving & this is expected to flow through to new housing during 2020 Portfolio with high performing projects, many in high demand locations with low competition Development progr
Slide 22: The Cedar Woods investment proposition
The Cedar Woods investment proposition Stable and experienced Board and Management Geography Track record of consistent profits & fully franked dividends Well positioned to benefit from WA turnaround Portfolio diversified across geographies, product and price point Price Point 22
Slide 23: Disclaimer of liability
Disclaimer of liability While every effort is made to provide complete and accurate information, Cedar Woods Properties Limited does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. Subject to any terms implied
Slide 24: Appendix 1: Project pipeline
Appendix 1: Project pipeline LOT/UNITS LOTS/UNITS PROJECT LIFE CORRIDOR / PROJECT NAME PROJECT TYPE PROJECT REMAIN FY20 FY21 FY22 FY23 FY24 FY25 LOCATION (31/12/19) WESTERN AUSTRALIA - PERTH Mariners Cove, Mandurah South Residential Land and Townhouses 982 25 Ariella, Brabham North East Residential
Slide 25: Appendix 2: HIA’s New Home Sales (HIA)
Appendix 2: HIA’s New Home Sales (HIA) PRIVATE NEW HOUSE SALES - WESTERN AUSTRALIA (SEASONALLY ADJUSTED) PRIVATE NEW HOUSE SALES - VICTORIA (SEASONALLY ADJUSTED) Source: ABS 8731.0 and HIA Source: ABS 8731.0 and HIA 1,400 4,000 3,500 1,200 3,000 1,000 2,500 -2.3% 800 2,000 600 Geography 1,500 -6.9%
Slide 26: Appendix 3: Outlook for Dwelling Starts (HIA Nov 2019)
Appendix 3: Outlook for Dwelling Starts (HIA Nov 2019) New Housing Forecast, by Type, WA Dwelling Starts New Housing Forecast, by Type, VIC Dwelling Starts Source: HIA Economics 35.00 +7% WA Source: HIA Economics 80.00 +18% VIC 75.00 +19% +5% 70.00 -6% 30.00 +26% -18% 65.00 +40% -20% +7% 60.00 25.00
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