Dexus Convenience Retail Reit · ASX:DXC
Dexus Convenience Retail Reit — APN Property Group — H1 FY2014 Earnings Presentation
29 slides from Dexus Convenience Retail Reit's earnings presentation, Feb 25, 2014
Slide 1: Half Year Results Presentation 31 December 2013
HALF YEAR RESULTS PRESENTATION 31 DECEMBER 2013
Slide 2: Agenda
AGENDA Highlights Financial results summary Funds under management Business highlights and new initiatives Capital management Strategy and outlook Appendices 2
Slide 3: Highlights
Highlights Results $4.2 million statutory profit after tax, up 172% compared to prior comparative period (pcp) $6.4 million revenue from transaction and performance fees Interim dividend steady at 1.25 cents per share Continuing increase in Funds Under Management (FUM) Substantial improvemen
Slide 4: Financial results summary
Financial results summary Profit and loss Financial highlights ($000s) Half year ending Half year ending 31 December 2013 31 December 2012 Statutory profit after tax & MI of $4.2 million Revenue total 14,8381 9,582 Revenue includes $6.4 million from transaction and performance fees EBITDA2 6,617
Slide 5: Funds under management (A$m)
Funds under management (A$m)1 Healthcare2 Securities Direct Funds +3.5% +8.6% 934 967 860 +41.0% +6.8% 574 +12.9% +4.2% 381 407 209 236 246 Dec 2012 Jun 2013 Dec 2013 Dec 2012 Jun 2013 Dec 2013 Dec 2012 Jun 2013 Dec 2013 FUM1 increased 13.3% since June 2013 and 23.2% since December 2012 1 From conti
Slide 6: Business highlights and new initiatives
BUSINESS HIGHLIGHTS AND NEW INITIATIVES 6
Slide 7: Industria REIT
Industria REIT Established December 2013 Key metrics1 Strong equity investor demand, with IPO fully underwritten by Number of properties 18 Macquarie, UBS, RBS Morgans, ANZ and Evans and Partners Investment property value $378m Workspace focussed portfolio of established and high quality Marke
Slide 8: Generation Healthcare REIT
Generation Healthcare REIT Results Underlying operating income1 was $4.7 million up 47% on the prior Key metrics corresponding period (pcp) AREIT listed on ASX under code ‘GHC’ Distributions of 4.00 cpu (up 9% on pcp) FUM of $246 million with property assets in Victoria, NSW and Queensland GHC
Slide 9: APN AREIT Fund
APN AREIT Fund Rated as one of Australia’s leading property securities funds With strong support from the market ... Focussed on generating consistent income returns by actively managing a portfolio of high yielding AREITs with lower risk than the market Consistently ranks in the top two posit
Slide 10: Capital management
CAPITAL MANAGEMENT APN | Property Group
Slide 11: Capital management and shareholders
Capital management and shareholders Equity raising APN share price1 $0.50 $16.1 million equity raising completed in Dec 2013 $0.40 Offer price of $0.25 per new share, with full entitlement to interim $0.30 dividend of 1.25 cps $0.20 Combination placement and entitlement offer with high quality
Slide 12: Strategy & Outlook
od on WS eS 25 DO I erty Group APN | Prop
Slide 13: Strategy and implementation
Strategy and implementation Philosophy ‘Property for income’ Approach Investment performance Outstanding service Focus on activities in Specialist expertise Real Estate Securities Strategy which APN has a Track record Healthcare Real Estate competitive advantage Governance Direct Funds
Slide 14: Industry dynamics and market position
Industry dynamics and market position Australia’s compulsory superannuation system, the fourth largest in the world, underpins the Attractive Australian funds management industry Superannuation has ~$1.6 trillion in assets at 30 June 2013, and is forecast to grow to ~$7.6 industry trillion by 20
Slide 15: Outlook
Outlook Successfully transitioning into growth mode Three quality established businesses New platform with the successful IPO of Industria REIT A specialist real Attractive investment opportunities available – though the estate investment need to differentiate between markets and assets is m
Slide 16: Appendix 1 Financial Information
APPENDIX 1 FINANCIAL INFORMATION
Slide 17: Financial performance
Financial performance 31 December 2013 31 December 2012 $000s $000s Management and recurring fees 7,945 7,394 Transaction and performance fees 6,353 1,939 Other revenue 540 249 Revenue Total 14,838 9,582 Direct costs (1,388) (933) Administrative expenses (6,839) (6,584) FX gains – realised/unrealise
Slide 18: Balance sheet
Balance sheet Dec 2013 Jun 2013 NTA backing per share December 2013 $000s $000s Cash and cash equivalents 9,277 7,409 30.0 28.0 (1.9) Trade and other receivables 11,127 5,245 (4.2) Co-investments 29,382 15,456 25.0 Other assets 289 440 21.9 25.5 Total current assets 50,075 28,550 20.0 A$ cents per s
Slide 19: Co-investments ($000s)
Co-investments ($000s) Financial Assets 35,000 978 29,382 30,000 1,207 732 90 850 11,813 194 25,000 20,000 13,518 15,000 10,000 5,000 - GHC 1 IDR APN Direct Property APN Dev Fund 1 APN Dev Fund 2 APN Asian REIT APN Asia Pacific APN 541 St Kilda Co-investments Fund Fund REIT Fund Road Fund 1 $4.9 mil
Slide 20: EBITDA Bridge ($000s)
EBITDA1 Bridge ($000s) 8,000 291 (455) 4,414 (229) 7,000 6,617 6,000 5,000 4,000 3,000 551 2,045 2,000 1,000 - EBITDA Dec12 Increase in Increase in performance Increase in other Increase in cost of sales Increase in overheads EBITDA Dec13 management and fees / transaction fees revenue recurring fees
Slide 21: Reconciliation of NPAT to cashflow from operations ($000s)
Reconciliation of NPAT to cashflow from operations ($000s) Movement in net cash 6,000 1,170 (832) 5,000 (2,965) 4,227 4,000 3,000 2,000 (946) 1,000 654 - Net profit after tax Add back minority interest Fair value adjustment (net Revenue to be settled by Working capital movement Cash from operating o
Slide 22: Appendix 2 Additional Information
APPENDIX 2 ADDITIONAL INFORMATION
Slide 23: Funds and organisation
Funds and organisation Securities Business Healthcare Direct Funds Australia Asia Funds APN Asian Asset Income Fund FUM $246 million $967 million $574 million 1 Excludes Europe 23
Slide 24: Real Estate Securities – Australia
Real Estate Securities – Australia FUM 960 APN AREIT Net inflows averaging >$13 million per month 938 940 Fund FUM as at 31 December 2013 of $500 million $millions 920 902 Performance since inception 15.39%1 pa 900 (versus index of 10.60% pa), exceeding 880 benchmarks Jun-13 Dec-13 Low volat
Slide 25: Real Estate Securities – Asia
Real Estate Securities – Asia APN Asian Asset Income Fund (AAAIF) AAAIF performance and volatility comparison relative - Institutional product to selected indexes (December 2013) - Total return of 16.0% pa over last 5 years to 25% December 2013 20% - 100% liquid 15% - Fund being re-domiciled in Lu
Slide 26: Direct Funds
Direct Funds FUM Industria REIT1 IPO in December 2013 800 574 18 assets 600 Occupancy 97.2% 407 $millions 400 Forecast annualised FY14 distribution of 8.2% 200 WALE 5.8 years 0 Jun-13 Dec-13 APN 541 St Major tenant SEEK leased level 2 which was Kilda Road previously vacant Annuity Style
Slide 27: Industry awards
Industry awards APN’s depth of experience together with proven investment performance has been acknowledged by the following industry awards: Money magazine’s 2013 Best of the Best award for Best Property Securities Fund – APN AREIT Fund Professional Planner │ Zenith Fund Awards 2013 – AREIT Fun
Slide 28: Disclaimers
Disclaimers The financial information included in this presentation is based on APN Property Group’s financial results that have been prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations and complies with other requirements of the law including Internationa
Slide 29: Contact details
Contact details Chris Aylward John Freemantle Tim Slattery Executive Chairman Chief Financial Officer Director, Corporate Development Ph: (03) 8656 1000 Ph: (03) 8656 1025 Ph: (03) 8656 1031 chris.aylward@apngroup.com.au jfreemantle@apngroup.com.au tim.slattery@apngroup.com.au APN Property Gro