Waypoint Reit Ltd. · ASX:WPR
Waypoint Reit — Viva Energy REIT — FY2017 Earnings Presentation
36 slides from Waypoint Reit's earnings presentation, Feb 22, 2018
Slide 1: Viva Energy REIT FY2017 Results
VVR FY2017 RESULTS For personal use only Viva Energy REIT FY2017 Results 22 February 2018
Slide 2: Agenda
For personal use only AGENDA Highlights 4 Financial Results 8 Portfolio Update 13 Industry Update 21 Viva Energy Australia Update 24 Strategy & Outlook 29 Questions & Glossary 32
Slide 3: Disclaimer
For personal use only Disclaimer: For a reconciliation of the non-IFRS independent verification, the accuracy Manager Pty Ltd, nor any of their forward-looking statements. Any This presentation has been prepared financial information to IFRS- and completeness of all information associates, related e
Slide 4: Highlights
For personal use only Highlights MARGARET KENNEDY Managing Director VER Manager Pty Limited 4
Slide 5: Key Highlights
HIGHLIGHTS VVR FY2017 RESULTS 22 FEBRUARY 2018 Key Highlights For personal use only FOR FULL YEAR ENDED 31 DECEMBER 2017 CONTINUED EARNINGS PER UPLIFT IN NTA GROWTH SECURITY ABOVE FROM PROPERTY THROUGH FORECAST REVALUATIONS ACQUISITIONS 5
Slide 6: Financial Highlights
HIGHLIGHTS VVR FY2017 RESULTS 22 FEBRUARY 2018 Financial Highlights FOR FULL YEAR ENDED 31 DECEMBER 2017 For personal use only $170.5 million 13.41 CPS NTA +5.8% to 11% pa 0.24% pa 32% statutory Distributable $2.19 per total property management gearing profit Earnings security 1 return costs ratio F
Slide 7: Portfolio Overview
HIGHLIGHTS VVR FY2017 RESULTS 22 FEBRUARY 2018 Portfolio Overview AT 31 DECEMBER 2017 For personal use only $2.28 billion 1.86 million m 2 76% metro WALE of 100% portfolio of real estate properties 13.7 years occupancy Portfolio of 438 high-quality Geographically diversified 24% regional properties
Slide 8: Financial Results
For personal use only Financial Results GUY FARRANDS Chief Financial Officer VER Manager Pty Limited 8
Slide 9: Statutory Financial Performance
FINANCIAL RESULTS VVR FY2017 RESULTS 22 FEBRUARY 2018 Statutory Financial Performance For personal use only Full year Part year Statutory Profit and Loss 31 December 2017 31 December 20161 $ million $ million Income Rental income from investment properties 127.9 49.2 Revenue from investment properti
Slide 10: Distributable Earnings
FINANCIAL RESULTS VVR FY2017 RESULTS 22 FEBRUARY 2018 Distributable Earnings For personal use only Full year Part year Distributable Earnings 31 December 2017 31 December 20162 $ million1 $ million Net statutory profit for the period 170.5 1.0 Add back: amortisation of debt establishment costs 1.6 0
Slide 11: Financial Position
FINANCIAL RESULTS VVR FY2017 RESULTS 22 FEBRUARY 2018 Financial Position For personal use only Full year Part year Balance Sheet 31 December 2017 31 December 20162 $ million1 $ million Assets Cash and cash equivalents 43.6 54.1 Prepayments and property deposits 8.2 2.0 Fair value of interest rate sw
Slide 12: Capital Management
FINANCIAL RESULTS VVR FY2017 RESULTS 22 FEBRUARY 2018 Capital Management For personal use only AS AT 31 DECEMBER 2017 • GEARING 32.1% VERSUS TARGET RANGE 35-45%, POTENTIAL TO ACHIEVE ACCRETION THROUGH ADDITIONAL DEBT-FUNDED ACQUISITIONS - Undrawn debt capacity of $160 million, full utilisation moves
Slide 13: Portfolio Update
For personal use only Portfolio Update MARGARET KENNEDY Managing Director VER Manager Pty Limited 13
Slide 14: Portfolio Overview
PORTFOLIO UPDATE VVR FY2017 RESULTS 22 FEBRUARY 2018 Portfolio Overview For personal use only PORTFOLIO AT 31 DECEMBER 2017 Properties Value Average Value Average size WACR1 WALE $m $m m2 % years Metropolitan 311 1,743 5.6 3,514 5.5 14.0 Regional 127 538 4.2 6,031 6.8 13.1 Total 438 2,281 5.2 4,244
Slide 15: Property Revaluations
PORTFOLIO UPDATE VVR FY2017 RESULTS 22 FEBRUARY 2018 Property Total portfolio valuation For personal use only Revaluations • Gross increase of $87 million or 4.2% • Cap Rate tightened from 5.9% to 5.8% AT 31 DECEMBER 2017 167 properties independently valued by JLL • Total gross increase of $36 milli
Slide 16: Portfolio Profile
PORTFOLIO UPDATE VVR FY2017 RESULTS 22 FEBRUARY 2018 Portfolio • 1.86 million m2 of property geographically diversified For personal use only Profile across all Australian states and territories AT 31 DECEMBER 2017 • 83% of properties by value located in Australia’s more populous Eastern seaboard st
Slide 17: Portfolio Profile: Metropolitan and Regional
PORTFOLIO UPDATE VVR FY2017 RESULTS 22 FEBRUARY 2018 Portfolio Metropolitan properties For personal use only Profile • Typically higher-value and higher-volume properties that attract tighter Cap Rates AT 31 DECEMBER 2017 • Located on major roads with high traffic volumes and in higher population de
Slide 18: Portfolio Lease Profile
PORTFOLIO UPDATE VVR FY2017 RESULTS 22 FEBRUARY 2018 Portfolio Lease Profile For personal use only AT 31 DECEMBER 2017 100% OCCUPANCY 3%1 PER ANNUM FIXED RENTAL INCREASES COMMENCED AUGUST 2017 Portfolio WALE 25% 20% % of income 15% 10% 5% 0% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 202
Slide 19: Acquisition Strategy
PORTFOLIO UPDATE VVR FY2017 RESULTS 22 FEBRUARY 2018 Acquisition VVR will continue to consider acquisition and For personal use only Strategy development opportunities consistent with the following investment criteria: 1 Investment is high quality and strategically located; 2 Portfolio remains geogr
Slide 20: Acquisition Summary
PORTFOLIO UPDATE VVR FY2017 RESULTS 22 FEBRUARY 2018 Acquisition Summary For personal use only TOTAL ACQUISITIONS FROM INITIAL LISTING TO 31 DECEMBER 2017 Properties Purchase price Average cost Average size WACR1 WALE $m $m m2 % years Metropolitan 7 76.4 10.9 5,002 5.7 9.2 Regional 6 26.8 4.5 23,272
Slide 21: Industry Update
For personal use only Industry Update MARGARET KENNEDY Managing Director VER Manager Pty Limited 21
Slide 22: Evolution of Convenience Industry
INDUSTRY UPDATE VVR FY2017 RESULTS 22 FEBRUARY 2018 Evolution of • The mix of customers’ goods and services For personal use only Convenience requirements are changing, supporting strong and consistent growth in the convenience sector1 Industry • The $8.3 billion Petrol and Convenience industry (exc
Slide 23: Evolution of Fuel Industry
INDUSTRY UPDATE VVR FY2017 RESULTS 22 FEBRUARY 2018 Evolution of • Australian automotive fuel sales have experienced For personal use only Fuel Industry +2.7% CAGR from July 2011 to June 20171 - premium unleaded sales +5.0% CAGR over period1 - diesel sales +4.1% CAGR over period1 • Diesel and premiu
Slide 24: Viva Energy Australia Update
For personal use only Viva Energy Australia Update MARGARET KENNEDY Managing Director VER Manager Pty Limited 24
Slide 25: Snapshot of Viva Energy Australia
VIVA ENERGY AUSTRALIA UPDATE VVR FY2017 RESULTS 22 FEBRUARY 2018 Snapshot of Viva Energy Australia FULLY INTEGRATED PLAYER WITH KEY POSITIONS IN ALL MAJOR MARKET SEGMENTS For personal use only Refining Trading Integrated Sales and Supply Supply & Distribution Consumer Commercial Partnerships and inv
Slide 26: Viva Energy Australia
VIVA ENERGY AUSTRALIA UPDATE VVR FY2017 RESULTS 22 FEBRUARY 2018 Viva Energy Viva Energy Australia continues to invest to grow its For personal use only Australia business, with highlights in 2017 including: • Completion of new $50 million crude tank in Geelong, and $23 million investment to expand
Slide 27: Viva Energy Australia
VIVA ENERGY AUSTRALIA UPDATE VVR FY2017 RESULTS 22 FEBRUARY 2018 Viva Energy • Exclusive supplier of fuel and other oil products in For personal use only Australia Australia under the Shell brand1 • Manufactures, supplies and markets fuel in Australia AT 31 DECEMBER 2017 through a market-leading ser
Slide 28: Coles Express
VIVA ENERGY AUSTRALIA UPDATE VVR FY2017 RESULTS 22 FEBRUARY 2018 Coles Express For personal use only • Alliance properties are operated by Coles Express1 under the terms of the Alliance Agreement between Viva Energy Australia and Coles Express which is due to expire in 2024; either party may unilate
Slide 29: Strategy & Outlook
For personal use only Strategy & Outlook MARGARET KENNEDY Managing Director VER Manager Pty Limited 29
Slide 30: Strategy
OUTLOOK VVR FY2017 RESULTS 22 FEBRUARY 2018 Strategy MARKET-LEADING NATIONAL SERVICE STATION AND For personal use only CONVENIENCE PROPERTY DISTRIBUTION PLATFORM Irreplicable high- National 100% occupancy, 3% per annum rent Portfolio quality strategically distribution predominantly long- increases 2
Slide 31: Outlook
OUTLOOK VVR FY2017 RESULTS 22 FEBRUARY 2018 Outlook For personal use only Optimise core Ongoing Progressing FY2018 Distributable Target payout ratio business and opportunities for capital Earnings guidance 1 100% 1 of maintain low acquisition and management of 13.81-13.91 CPS Distributable managemen
Slide 32: Questions
For personal use only 32 Questions
Slide 33: Glossary
For personal use only 33 Glossary
Slide 34: Glossary
GLOSSARY VVR FY2017 RESULTS 22 FEBRUARY 2018 Glossary For personal use only The contractual alliance between Viva Energy Australia and Coles Express (and their associated entities) including the Alliance Alliance Agreement and Site Agreements as outlined in the PDS CAGR Compound average growth rate
Slide 35: Glossary
GLOSSARY VVR FY2017 RESULTS 22 FEBRUARY 2018 Glossary For personal use only Interest Coverage Earnings before interest, tax, depreciation and amortisation (excluding any asset revaluations, mark-to-market movements and Ratio or ICR transaction costs) divided by net interest expense IPO Initial Publi
Slide 36: For personal use only
For personal use only