Slide 1: HY22 Results Presentation
Abacus Property Group HY22 Results Presentation 17 February 2022
Slide 2: Platform metrics HY22
Platform metrics HY22 WEIGHTED NET TOTAL AVERAGE GEARING TANGIBLE ASSETS CAP RATE ASSETS A$4.9bn 5.49%1,2 29.4% $3.73ps 21.6% on FY21 16bps on FY21 690bps on FY21 8.7% on FY21 STATUTORY FFO FFO DPS PROFIT PER SECURITY $314.8m $81.1m 9.8c 8.75c 107.4% on HY21 33.7% on HY21 8.2% on HY21 2.9% o
Slide 3: HY22 highlights
HY22 highlights Abacus is a diversified Australian REIT with an investment portfolio concentrated in the Commercial property and Self Storage sectors Deployment: Material transformation with approximately $3.2 billion1 deployed since FY17 including over $1.8 billion into Self Storage Over $1 bil
Slide 4: Proforma balance sheet allocation
Proforma1 balance sheet allocation 31 DECEMBER 2021 30 JUNE 2021 $5.2 billion of Total Assets2 $4.1 billion of Total Assets2 Commercial Self Storage Commercial Self Storage 50% 50% 52% 45% $2.5 billion $2.5 billion $2.0 billion $1.8 billion Office $1,932m Established3 $1,220m Office $1,646m Establis
Slide 5: Capital deployment
Capital deployment Investment of approximately $3.2 billion into key sectors since FY17 has transformed Abacus into a strong asset backed, annuity style investment house Movement in Investment Portfolio1,2 (in $ millions) $5.0 billion (27) 247 Commercial Property 30 (198) Self Storage 483 601 (16) 2
Slide 6: Financial Metrics
Abacus Property Group Financial Metrics
Slide 7: HY22 key financial metrics
HY22 key financial metrics Result highlights in HY22: KEY FINANCIAL METRICS HY22 HY21 FFO up 33.7% to $81.1 million – Commercial portfolio FFO contribution increased 13.5% to $47.1 million AIFRS statutory profit $314.8m $151.8m – Self Storage portfolio FFO contribution increased 67.2% to $53.0 mil
Slide 8: Balance sheet – HY22
Balance sheet – HY22 NTA per security up 8.7% to $3.73 Proforma1 balance sheet gearing is 33.3%2 KEY FINANCIAL METRICS HY22 FY21 Anticipate FY22 cost of debt to be between 2.00% - 2.25% NTA per security $3.73 $3.43 Abacus total assets $4,936m $4,059m TOTAL ASSETS4 Net tangible assets $3,102m $
Slide 9: Investment portfolio – valuation
Investment portfolio – valuation The revaluation process for Abacus resulted in a net increase in investment property values for HY22 of $175.2 million HY22 FY21 HY22 FY21 – Gain of $140.8 million or 7.5% across the Self Storage INVESTMENT weighted weighted Valuation Valuation PORTFOLIO1 average a
Slide 10: Operating Performance
Abacus Property Group Operating Performance
Slide 11: Self Storage – snapshot
Self Storage – snapshot SELF STORAGE $2.4 billion (51% of total assets1) Needs new image Established2 Self Storage portfolio of $1.2 billion yielding 5.7% on an annualised basis Asset class continues resilient performance through COVID- 19 pandemic with the FY20 established portfolio3 occupancy
Slide 12: Self Storage – average rent trends
Self Storage – average rent trends 9.3% average rent growth (CY21 vs. CY20) across the Established portfolio1 ACT NSW NZ $370 $370 $370 $330 $330 $330 $290 $290 $290 $250 $250 $250 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Slide 13: Storage King – operational update
Storage King – operational update STORE GROWTH DRIVING REVENUE As at HY22 Storage King manages 189 stores, (104 Abacus and 85 licensee stores) with 8 stores added during the half year Storage sector benefitting from tail winds of work from home, decluttering, e-commerce and housing market activi
Slide 14: Self Storage – portfolio additions
Self Storage – portfolio additions Needs new image ACQUISITIONS DEVELOPMENTS Disciplined, acquisition strategy with a strong pipeline Over 13,000 sqm of net lettable area (NLA) delivered during HY22 $430 million1 of Self Storage acquisitions settled in HY22 – 70% (by value) located in Top 3 SU
Slide 15: Commercial: Office snapshot
Commercial: Office snapshot OFFICE $1.7 billion (36% of total assets1) 95.0% 6.6% Occupancy2 LFL income growth2,3 3.8 yrs 5.35% WALE2 WACR4 39 345 Leasing deals Customers5 96% 2% Rent collected6 Waivers provided7 1. As at HY22. Excludes investments in cash and other assets. 2. Excludes development a
Slide 16: Commercial: Office leasing metrics
Commercial: Office leasing metrics LEASE EXPIRY PROFILE (BY INCOME) 25,237 sqm 24% new leased in HY221 76% renewals 32% 29% 33% on new deals average incentive 24% on renewals 2.6% 6.6% on new deals leasing spreads 0.6% on renewals 17% 17% 16% 3.9% 97% fixed average rent review 3% CPI 11% $7072 psm $
Slide 17: Commercial: Retail snapshot
Commercial: Retail snapshot RETAIL $485 million (11% of total assets1) 93.5% (0.9%) Occupancy LFL income growth 6.4 yrs 6.07% WALE WACR 22 206 Leasing deals Customers 93% 2% Rent collected2 Waivers provided3 1. As at HY22. Excludes investments in cash and other assets. 2. Calculated as rent invoiced
Slide 18: Commercial: Capital transactions and developments
Commercial: Capital transactions and developments COMMERCIAL TRANSACTIONS AND DEVELOPMENT $601 million1 invested, including: – 77 Castlereagh Street, Sydney NSW – 100% interest acquired for $250 million, due to settle March 2022 – Myer Bourke Street, Melbourne VIC – 33.3% acquired for $135.2 milli
Slide 19: Sustainability – embedded in how we conduct business
Sustainability – embedded in how we conduct business Integration of ESG across the business to drive long term sustainable growth Actively exploring opportunities and managing risks Deliver long-term sustainable outcomes for our stakeholders 15% BY FY25 (From FY19 base year) 5.0 Scope 1 & 2 NABERS E
Slide 20: Summary and Outlook
Abacus Property Group Summary and Outlook
Slide 21: Outlook
Outlook Abacus is positioned as a strong asset backed, annuity style A-REIT focused on the ownership and management of Commercial and Self Storage real estate and operation of storage locations Strategic focus is in key sectors of Self Storage and Commercial real estate The size, nature and mark
Slide 22: HY22 Data Pack
Abacus Property Group HY22 Data Pack
Slide 23: Contents
Contents Financial Performance 24-30 Investment Portfolio 31-34 Glossary 35 Important information 36 23 Abacus Property Group | HY22 Results Presentation
Slide 24: Segment earnings
Segment earnings SELF PROPERTY $ millions COMMERCIAL HY22 TOTAL HY21 TOTAL STORAGE DEVELOPMENT Rental income 65.31 73.6 138.9 109.7 Finance income 1.5 4.7 6.2 5.14 Fee income 0.7 7.2 7.9 2.2 Share of profit from equity accounted investments2, 3 4.3 4.3 4.3 Sale of inventory - 2.9 Other income 9.9 9.
Slide 25: Segment balance sheet
Segment balance sheet PROPERTY PROPERTY $ millions OTHER HY22 FY21 INVESTMENT DEVELOPMENT Commercial investment properties 1,943.5 1,943.5 1,919.7 Self Storage investment properties 2,028.8 2,028.8 1,430.2 PP&E, equity accounted and other 479.4 81.6 561.0 428.9 investments, financial and other asset
Slide 26: HY22 Balance sheet allocation
HY22 Balance sheet allocation 31 DECEMBER 2021 30 JUNE 2021 $4.9 billion of Total Assets1 $4.1 billion of Total Assets1 Commercial Self Storage Commercial Self Storage 47% 51% 52% 45% $2.2 billion $2.4 billion $2.0 billion $1.8 billion Office $1,682m Established2 $1,220m Office $1,646m Established2
Slide 27: Net tangible asset reconciliation
Net tangible asset reconciliation $ millions HY22 FY21 Net assets 3,183.2 2,901.9 Less Intangible assets and goodwill (106.0) (106.3) Deferred tax assets/liabilities (net) 24.6 15.3 Total net tangible assets 3,101.8 2,810.9 Securities on issue 831.8 818.6 Net tangible assets per security 3.73 3.43 2
Slide 28: Debt facilities
Debt facilities CAPITAL MANAGEMENT METRICS HY22 FY21 Total bank debt facilities $1,860m $1,360m Total bank debt drawn $1,551m $960m Term to maturity 4.1 yrs 4.8 yrs % hedged 43% 47% % hedged of total debt facilities 36% 33% Weighted average hedge maturity 2.3 yrs 2.1 yrs Average cost of debt – drawn
Slide 29: Debt maturity profile as at 31 December 2021
Debt maturity profile as at 31 December 2021 ($ millions) 400 Available bank facility 1.2 Committed bank facility Drawn bank debt 2.1 300 200 365.4 317.8 148.5 212.8 212.8 100 184.4 166.5 140.5 16.2 49.4 42.3 0 FY22 HY23 FY23 HY24 FY24 HY25 FY25 HY26 FY26 HY27 FY27 HY28 29 Abacus Property Group | HY
Slide 30: Fixed hedging maturity profile as at 31 December 2021
Fixed hedging maturity profile as at 31 December 2021 Fixed Debt, Interest Rate Swaps & Collars ($ millions) Weighted Average Fixed Rate 700 7.0% 600 6.0% 500 5.0% 400 4.0% 300 3.0% 200 2.0% 100 1.0% 0 0.0% Year 1 Year 2 Year 3 Year 4 Year 5 30 Abacus Property Group | HY22 Results Presentation
Slide 31: Investment portfolio metrics
Investment portfolio metrics PORTFOLIO METRICS SELF RETAIL & INVESTMENT PORTFOLIO SECTOR DIVERSIFICATION OFFICE TOTAL HY22 STORAGE OTHER Retail & Other Value1 ($m) 1,682 2,406 490 4,578 12% Office No. of assets 21 1162 4 141 37% NLA (sqm)3,4 110,553 545,1875 61,595 717,335 Self Storage 51% WACR1 (%)
Slide 32: Self Storage metrics
Self Storage metrics PERFORMANCE METRICS AUS NZ HY22 FY21 PERFORMANCE METRICS ($ millions) HY22 HY21 Number of assets 101 15 1161 93 Storage revenue 66.0 45.4 NLA (sqm) 467,516 77,671 545,187 442,942 Other revenue 7.6 6.5 Occupancy (%) 92.7 92.9 92.82 91.02 Total revenue 73.6 51.9 Rental rate (psm)
Slide 33: Abacus store network HY22
Abacus store network HY221 2 1. Includes post balance date transactions 2. Significant Urban Areas, as defined by the Australian Bureau of Statistics. Top 3 markets by population are Sydney, Melbourne and Brisbane. 33 Abacus Property Group | HY22 Results Presentation
Slide 34: Self Storage development pipeline
Self Storage development pipeline 100,000 sqm of net lettable area (NLA) over 15 new development sites1 to be developed across the short to medium-term, with over 10,000 sqm delivered during HY22 Over 35,000 sqm of additional NLA to be generated from expansions across the existing portfolio An
Slide 35: Glossary
Glossary TERM DEFINITION TERM DEFINITION AIFRS Australian International Financial Reporting NABERS National Australian Built Environment Standards Rating System A-REIT Australian Real Estate Investment Trust NLA Net lettable area CBD Central business district NTA Net tangible assets CPI Consumer pri
Slide 36: Important information
Important information The information provided in this document is general, and may not be suitable for the specific purposes of any user of this document. It is not financial advice or a recommendation to acquire Abacus Property Group securities (ASX: ABP). Abacus Property Group believes that the i