Slide 1: FY23 Results Presentation
FY23 RESULTS PRESENTATION 18 AUGUST 2023 Abacus Group | FY23 Results Presentation
Slide 2: Acknowledgement of Traditional Owners
ABACUS ACKNOWLEDGES THE TRADITIONAL OWNERS OF THE LAND ON WHICH OUR BUSINESS OPERATES, AND WE PAY OUR RESPECT TO ELDERS PAST, PRESENT AND EMERGING Abacus Group | FY23 Results Presentation 2
Slide 3: Agenda
ABACUS GROUP1 FY23 RESULTS Agenda Overview and Operating Operating 01 successful de-stapling 02 Key financial metrics 03 performance Self Storage 04 performance Commercial 05 Outlook and guidance Steven Sewell, Evan Goodridge, Nikki Lawson, Steven Sewell, Steven Sewell, Managing Director CFO GGM Sel
Slide 4: FY23 Platform Metrics
FY23 PLATFORM METRICS STATUTORY PROFIT FFO FFO PER SECURITY DPS ABP (Statutory) $25.5m $175.0m 19.6cps 18.4cps 95.1% on FY22 8.8% on FY22 3.0% on FY22 2.2% on FY22 TOTAL ASSETS WACR3 GEARING NET TANGIBLE ASSETS ABG (Pro forma)1 $2.9bn 5.71% 28.3% $2.11ps ASK (Pro forma)2 $3.1bn 5.57% 26.2% $
Slide 5: FY23 Highlights
FY23 HIGHLIGHTS Self Storage Commercial delivered 19% growth on FY22 Transformational delivered 13% growth on FY22 1111in Self Storage net property year positions 191 in Commercial net property assets rental income contribution Commercial, to Abacus Group assets rental income contribution to FFO to
Slide 6: FY23 Balance Sheet Allocation
FY23 BALANCE SHEET ALLOCATION 30 June 2023 30 June 2022 $ 5.6bn Total Assets $ 5.4bn Total Assets1 55% SELF STORAGE $3.1bn 45% COMMERCIAL $2.5bn 51% SELF STORAGE $2.6bn 49% COMMERCIAL $2.5bn Established2 $1,667m Office $1,703m Established2 $1,509m Office $1,903m Acquisitions3 $378m Retail $466m Acqu
Slide 7: FY23 ESG Focus
FY23 ESG FOCUS Environmental Social Governance Engagement score from employee survey Introduced a Modern Slavery questionnaire 4.7 star Office NABERS energy rating - 83% Abacus Group as a pre-qualification before engaging 4.5 star Office NABERS water rating - 82% Storage King contractors Abacus empl
Slide 8: Sustainability: Tracking Our Progress
SUSTAINABILITY: TRACKING OUR PROGRESS FY19 FY20 FY21 FY22 FY23 34% Scope 1 & 2 GHG 0.080 0.069 ENERGY emissions intensity 0.061 0.059 (t/sqm) 0.053 From FY19 Scope 1 & 2 GHG emissions intensity1 0.6 NABERS Energy 4.3 4.6 4.7 4.7 ENERGY NABERS (including Green 4.1 From FY19 Power) NABERS Energy2 12%
Slide 9: Successful De-stapling
SUCCESSFUL DE-STAPLING Abacus Group | FY23 Results Presentation
Slide 10: Establishment of Pure Play Storage Vehicle
ESTABLISHMENT OF PURE PLAY STORAGE VEHICLE Post de-staple structure of Abacus Group (ASX:ABG) and Abacus Storage King (ASX:ASK) separately listed on the ASX Abacus Group (ASX:ABG) Abacus Storage King (ASX:ASK) Stapled structure of four entities Stapled structure of two entities 19.9% ownership stake
Slide 11: Key Financial Metrics
KEY FINANCIAL METRICS 452-484 Abacus Group Johnston | FY23 Results Street, Abbotsford VIC Presentation
Slide 12: FY23 Key Financial Metrics: ABP
FY23 KEY FINANCIAL METRICS: ABP1 $ millions FY23 FY22 Funds from Operations 175.0 160.9 Depreciation and amortisation (8.0) (7.5) Rent straight-lining, incentives, movement in lease liabilities, finance costs, impairments & one off adjustments (19.4) (13.6) Gains/(losses) in divestments (9.2) (1.0)
Slide 13: Segment Earnings
SEGMENT EARNINGS $ millions ABG ASK FY23 FY22 Comments Increase in Self Storage by $29.9m ($15.4m from acquisitions & stabilising assets) Rental income 157.9 190.4 348.3 297.4 Increase in Commercial by $21.0m Wind down of legacy residential mortgage business partially offset by increase in Fee and f
Slide 14: Capital Management: ABG Pro Forma
CAPITAL MANAGEMENT: ABG PRO FORMA1 FY24 anticipated avg. NTA ABG total assets Acquisition capacity2 cost of drawn debt3 Gearing Debt term to maturity $2.11ps $2.9bn $297m 4.7% 28.3% 4.0yrs Debt expiry profile FY24 avg. interest rate hedging Hedging profile expiry $m Drawn bank debt Available bank fa
Slide 15: Capital Management: ASK Pro Forma
CAPITAL MANAGEMENT: ASK PRO FORMA1 FY24 anticipated avg. NTA ASK total assets Acquisition capacity2 cost of drawn debt3 Gearing Debt term to maturity $1.56ps $3.1bn $408m 3.6% 26.2% 3.3yrs Debt expiry profile FY24 avg. interest rate hedging Hedging profile expiry $m Drawn bank debt Available bank fa
Slide 16: Investment Portfolio: ABG
INVESTMENT PORTFOLIO: ABG Total Abacus Group Investment Portfolio Office Retail & Other Investment Portfolio 15 assets 6 assets 21 assets Chg photo No. of assets 1,703 831 2,534 Investment property valuation -$186 million -$62 million -$248 million movement since FY22 10.7% 10.1% 10.5% FY23 WACR 5.5
Slide 17: Investment Portfolio: ASK
INVESTMENT PORTFOLIO: ASK Investment Portfolio Self Storage 131 assets No. of assets Total assets: $3,072m Income generating investment properties: $2,432m FY23 carrying value Non-income generating investment properties: $221m Other1: $419m +$150 million Investment property valuation 6.1% movement s
Slide 18: Operating Performance: Self Storage (ASK)
Chg photo OPERATING PERFORMANCE SELF STORAGE (ASK) Storage Abacus Group | FY23 Results King Prestons, NSW Presentation
Slide 19: Self Storage: Snapshot
SELF STORAGE: SNAPSHOT Self Storage portfolio valued at $3.1 billion Established portfolio3 Acquisitions4 Stabilising portfolio5 Assets1 76 19 36 Chg photo Value2 $1,667m $378m $608m Net lettable area 396,000 sqm6 100,000 sqm 92,000 sqm Occupancy7 91.3% 90.9% 67.2% Average rent psm7 $349 $336 $306 R
Slide 20: Self Storage: Attractive Fundamentals
SELF STORAGE: ATTRACTIVE FUNDAMENTALS Drivers of Self Storage demand Population Discretionary Housing Housing Rise of growth spending turnover density e-commerce With sustained population An increase in discretionary Moving residences increases Rising density results in a Supply chain challenges, gr
Slide 21: Self Storage: Multi Pronged Growth Strategy
SELF STORAGE: MULTI PRONGED GROWTH STRATEGY Portfolio additions, developments, renovations/extensions all driving income growth Acquisitions • Disciplined, acquisition strategy with a priority on securing assets within high quality locations as per the Abacus Network Strategy • $159.1 million invest
Slide 22: Self Storage: Development Pipeline
SELF STORAGE: DEVELOPMENT PIPELINE1 Development pipeline to deliver 18 stores in the short to medium term Expansion opportunities Spent to date Cost to complete2 Est. completion value NLA cost to complete Expansion NLA $211m $268m $579m 117,000sqm $41m 18,400sqm NLA breakdown by market NLA developme
Slide 23: Self Storage: ASK Store Network
SELF STORAGE: ASK STORE NETWORK1 Strategically curated portfolio with a metro focus and a pipeline of new developments 1.1 million Total land area (sqm) 136 QLD 25 SUNSHINE COAST 1 WA 12 BRISBANE 16 GOLD COAST 8 Assets owned by Abacus Storage King SA 113 trading stores 3 23 future stores NSW 49 66%
Slide 24: Self Storage: Operating Trends
SELF STORAGE: OPERATING TRENDS Rate and occupancy dynamics driving Established Portfolio1 RevPAM growth Occupancy (RHS) Rental Yield ACT2 QLD VIC $440 100% $360 100% $360 100% 75% 75% 75% $360 $280 $280 50% 50% 50% $280 $200 $200 25% 25% 25% $200 May-23 0% $120 0% $120 0% Jan-22 Mar-22 May-22 Jul-22
Slide 25: Self Storage: Storage King
SELF STORAGE: STORAGE KING Nurturing and strengthening our brand value rated most recognised Self Storage brand in Australia 90,000+ Total units2 196 Storage King network stores1 49,000+ Customers3 113 Abacus owned stores 54 Licensed and managed stores 3.2 years 29 Licensed stores Average length of
Slide 26: Operating Performance: Commercial (ABG)
Chg photo OPERATING PERFORMANCE COMMERCIAL (ABG) 91Results Abacus Group | FY23 King William Street, Adelaide SA Presentation
Slide 27: Commercial: Office Snapshot
COMMERCIAL: OFFICE SNAPSHOT Portfolio of 15 Office assets valued at $1.7 billion OCCUPANCY1 WALE1 LEASING DEALS YTD LFL INCOME GROWTH1,2 Chg photo 95.0% 3.7yrs 94 1.7% FY22: 94.7% FY22: 3.8yrs FY22: 69 FY22: 8.2% WACR A GRADE BUILDINGS3 TENANT CUSTOMERS4 SME CUSTOMERS4,5 5.59% 76% 314 61% FY22: 5.15
Slide 28: Commercial: Office Leasing Metrics
COMMERCIAL: OFFICE LEASING METRICS Strong leasing spreads achieved in a challenging office environment 44,112sqm 31% 6.7% 3.9% $835psm leased1 in FY23 average gross incentive leasing spreads average rent review average net face rent2 FY22: 46,892sqm FY22: 29% FY22: 7.8% FY22: 3.9% FY22: $703psm 66%
Slide 29: Commercial: Office Leasing Expiry
COMMERCIAL: OFFICE LEASING EXPIRY1 Underpinned by geographical diversity 40% 17% 16% 11% 11% 5% 0% Vacant Short Term FY24 FY25 FY26 FY27 FY28+ NSW QLD SA ACT VIC 1. By gross income. Excludes development affected assets. Abacus Group | FY23 Results Presentation 29
Slide 30: Office Portfolio Has Been Reset
OFFICE PORTFOLIO HAS BEEN RESET High quality portfolio in premium locations underpinned by a diversified tenancy base Market profile: Geography1 4.7 Sydney CBD & Fringe Melbourne Brisbane CBD CBD & Fringe & Fringe Other NABERS Energy Asset profile: Grade1 A B+ B Asset profile: Life cycle1 Active Dev
Slide 31: Commercial: Office Leasing Strategy
COMMERCIAL: OFFICE LEASING STRATEGY Six Flex by Abacus workspaces covering a total of 4,575 sqm Current Flex by Abacus Portfolio1 • L7, 14 Martin Place, Sydney • L8, 99 Walker Street, North Sydney Flex portfolio Flex portfolio Office portfolio Average desk occupancy = 78.5% industry3 enterprise size
Slide 32: Commercial: Developments
COMMERCIAL: DEVELOPMENTS Recently completed Office developments delivering high quality income streams Manufacturing 36% 459-471 Church Street, Richmond VIC Consumer Goods 16% Construction 11% Occupancy 30 June 93.6% Tenant Professional Services 10% Education 8% Avg. net face rent psm $559 Industry1
Slide 33: Commercial: Capital Transactions
COMMERCIAL: CAPITAL TRANSACTIONS Portfolio optimisation continues with divestments achieved in a challenging market Asset Value FY23 Acquisitions $93 million 324 Queen Street, Brisbane QLD (remaining 50% stake) Asset Value 33 Queen Street, Brisbane QLD FY23 Divestments 247 Adelaide Street, Brisbane
Slide 34: Commercial: Retail Snapshot
COMMERCIAL: RETAIL SNAPSHOT Portfolio of 4 Retail asset (3 centres and 1 CBD asset) valued at $466 million OCCUPANCY WALE LEASING DEALS 95.2% 5.8yrs 45 FY22: 95.6% FY22: 6.2yrs FY22: 38 YTD LFL INCOME GROWTH WACR TENANT CUSTOMERS 3.8% 6.16% 215 FY22: (1.7%) FY22:5.99 % FY22: 218 Myer, Melbourne VIC
Slide 35: Outlook and Guidance
OUTLOOK AND GUIDANCE ThePresentation Abacus Group | FY23 Results Oasis, Broadbeach QLD
Slide 36: Outlook and Guidance
OUTLOOK AND GUIDANCE Owning and managing an Australian eastern seaboard focused Abacus Group Outlook Reconfirming Guidance Commercial portfolio and Reduced gearing, providing balance sheet Despite the prevailing macro factors • Abacus Group FY24 distribution guidance external management of capacity
Slide 37: Data Pack
DATA PACK Abacus Group | FY23 Results Presentation
Slide 38: Contents
CONTENTS RESTATED SEGMENT EARNINGS SLIDE 39 ABG & ASK SEGMENT BALANCE SHEET SLIDE 40 ABG PRO FORMA BALANCE SHEET SLIDE 41 ASK PRO FORMA BALANCE SHEET SLIDE 42 DEBT FACILITIES PRO FORMA SLIDE 43 INVESTMENT PORTFOLIO METRICS: ABG SLIDE 44 SELF STORAGE METRICS SLIDE 45 GLOSSARY SLIDE 46 IMPORTANT INFOR
Slide 39: Restated Segment Earnings
RESTATED SEGMENT EARNINGS ABG ASK Legacy Mortgage Business Total $ millions FY23 FY22 Variance FY23 FY22 Variance FY23 FY22 Variance FY23 FY22 Variance Rental income 157.9 136.9 21.0 190.4 160.5 29.9 - - - 348.3 297.4 50.9 Fee and finance income 4.4 5.0 (0.6) 16.8 15.2 1.6 - 8.2 (8.2) 21.2 28.4 (7.2
Slide 40: Segment Balance Sheet
SEGMENT BALANCE SHEET $ millions ABG ASK FY23 FY22 Investment properties 2,099.9 2,612.1 4,712.0 4,500.5 PP&E, equity and other investments, financial and other assets 276.4 324.2 600.6 571.4 Loans 53.1 - 53.1 53.1 Cash and cash equivalents 71.9 63.6 135.5 176.5 Goodwill and intangibles 32.5 72.5 10
Slide 41: Balance Sheet: ABG Pro Forma
BALANCE SHEET: ABG PRO FORMA De-staple / Transaction & $ millions ABG FY23 Repayment of ABG Pro forma Outstanding Loan1 Investment properties 2,099.9 - 2,099.9 PP&E, equity and other investments, financial and other assets 276.4 402.8 679.2 Loans 53.1 - 53.1 Cash and cash equivalents 71.9 - 71.9 Goo
Slide 42: Balance Sheet: ASK Pro Forma
BALANCE SHEET: ASK PRO FORMA De-staple / Transaction & $ millions ASK FY23 Repayment of ASK Pro forma Outstanding Loan1 Investment properties 2,612.1 - 2,612.1 PP&E, equity and other investments, financial and other assets 324.2 2.8 327.0 Cash and cash equivalents 63.6 - 63.6 Goodwill and intangible
Slide 43: Debt Facilities: Pro Forma
DEBT FACILITIES: PRO FORMA Capital management metrics ABG ASK Total bank debt facilities $1,058m $1,000m Total bank debt drawn $881m $853m Term to maturity 4.0yrs 3.3yrs Interest rate hedging1 70% 69% Weighted average hedge maturity 3.0yrs 3.2yrs FY24 Anticipated average cost of debt 4.7% 3.6% Group
Slide 44: Investment Portfolio Metrics: ABG
INVESTMENT PORTFOLIO METRICS: ABG Portfolio metrics FY23 Office Retail Other Total Investment portfolio sector diversification4 Value ($m) 1,703 466 3651 2,534 No. of assets 15 4 2 21 Office 76% NLA2,3 (sqm) 113,320 62,289 N/A 175,609 Retail 21% Other 4% WACR (%) 5.59 6.16 N/A 5.71 Occupancy2 (% by
Slide 45: Self Storage Metrics
SELF STORAGE METRICS Performance metrics Aus NZ FY23 FY22 Performance metrics ($m)5 FY23 FY22 No. of assets 116 15 1311 119 Storage revenue 185.4 156.6 Other revenue (net) 11.86 9.87 NLA (sqm) 510,605 77,774 588,379 550,359 Total revenue 197.2 166.4 Occupancy (%)2 91.0 92.6 91.3 92.9 Salaries & empl
Slide 46: Glossary
GLOSSARY TERM DEFINITION TERM DEFINITION ABG Abacus Group NABERS National Australian Built Environment Rating System ABP Abacus Property Group NLA Net lettable area ART Abacus Repository Trust NTA Net tangible assets ASK Abacus Storage King PP&E Property, plant and equipment ASX Australian Securitie
Slide 47: 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