Carindale Property Trust · ASX:CDP
Carindale Property Trust — Westfield Group — H1 2006 Earnings Presentation
42 slides from Carindale Property Trust's earnings presentation, Aug 29, 2006
Slide 1: Westfield Group Half Year Results Presentation
Westfield Group Half Year Results Presentation 30 June 2006 29 August 2006 1
Slide 2: Agenda
Agenda • Highlights • Business Review • Financial Review • Q&A Note: All figures within this presentation are presented in Australian dollars unless otherwise stated. Average exchange rates for the six months to June 2006 was AUD/USD 0.7434, AUD/GBP 0.4151, AUD/NZ 1.1556 and exchange rates as at 30
Slide 3: 2006 Half Year Highlights
2006 Half Year Highlights • Operational segment - Earnings of $804 million, up 9.4% - Earnings per security 45.9 cents, up 6.1% • Westfield Group half year net profit after tax of $3.4 billion • Distribution of $954 million (54.5 cents per security in line with forecast) • Interest in shopping centr
Slide 4: 2006 Half Year Highlights (continued)
2006 Half Year Highlights (continued) • Extensive Development Program - 12 projects will be completed in 2006 – total gross value of A$2.1 billion - 21 projects under construction – total gross value of A$8 billion • Transactions completed since 1 January 2006: - Acquired a further 75% interest in S
Slide 5: Growth in value of shopping centre interests
Growth in value of shopping centre interests • Since the merger the growth in Westfield Group’s share of the value of its shopping centre portfolio has grown by 54.7% • Over the six months to 30 June 2006 growth was 7.5% $5.1bn $(1.0)bn $(1.1)bn $45.8bn $4.5bn $8.7bn $29.6bn 30 Jun '04 Revaluations
Slide 6: Group Income and Distribution
Group Income and Distribution 6 months to 6 months to 30 June ’05 30 June ’05 Profit after tax (A$ million) 3,376 1,535 Distribution (A$ million) 954 867 Distribution per security (cents) 54.5 51.1 • Distribution for the 12 months to December ’06 forecast at 106.5 cents per security – in line with p
Slide 7: Operational Performance
Operational Performance 6 months to 6 months to 30 June ’05 % Change 30 June ’06 (Constant Currency) Operational segment EBIT (A$ million) 1,302 1,161 12.1% Operational segment earnings (A$ million) 804 735 9.4% Operational segment earnings per security (cents) 45.94 43.31 6.1% 7
Slide 8: Balance Sheet
Balance Sheet 30 June ’06 31 Dec ‘05 Gross Property Investments (A$ million) 45,757 42,577 Gearing (%)1 41.7 41.4 Net debt to total market capitalisation (%)2 33.6 31.6 Capital Management • Recycling of capital − Regular review of returns generated from existing portfolio − Disposed 8 ‘non-core’ US
Slide 9: Business Review
Business Review • Portfolio Summary • Global Development Activity • Shopping Centre Operating Performance • Retail Sales Overview 9
Slide 10: Portfolio Summary as at 30 June 2006
Portfolio Summary as at 30 June ’06 United United New Australia Total States Kingdom Zealand Centres 59 43 7 11 120 Retail Outlets 8,700 11,100 800 1,400 22,000 GLA (million sqm) 6.0 3.4 0.3 0.3 10.0 Net Property Income (million) US$460 A$514 £30 NZ$90 A$1,283 Westfield Asset Value (billion)1 US$13.
Slide 11: Global Development Activity
Global Development Activity 21 projects under construction as at 30 June 2006 with an estimated total cost of A$8.0 billion – Westfield Group share A$5.6 billion No. of Projects Estimated Target Weighted Total Cost Average Yield1 United States 13 US$1.8bn 9.8 – 10.3% Australia & New Zealand 6 A$0.
Slide 12: Global Development Activity
Global Development Activity Anticipate the completion of 12 developments during 2006 at a total cost of A$2.1 billion with a forecast weighted average development yield of 9.4% – Completed to date: Chesterfield (US), Connecticut Post (US), Parramatta (Aust) – To be completed: • United States Capit
Slide 13: Future Projects
Future Projects United States Australia & New Zealand United Kingdom • Belden Village (Canton, Ohio) • Bay City (VIC) • Broadway (Bradford) • Century City Phase II (Los Angeles, California) • Belconnen (ACT) • Merry Hill (Birmingham) • Chicago Ridge (Chicago, Illinois) • Booragoon (WA) • Sprucefield
Slide 14: Shopping Centre Operating Performance
Shopping Centre Operating Performance Lease Deals Average Specialty Specialty Completed2 Store Rent Portfolio Occupancy Comparable Leased1 Cost2 Number Area Amount 1 3 Growth NOI Growth2 United States 93.5% 13.7% 714 1,962,731 sqft US$40.87 psf 3.7% 4.3% Australia & A$1,168 psm > 99.5% 16.2% 1,360 1
Slide 15: Retail Sales Overview
Retail Sales Overview1 Period to 30 June 2006 12 months 6 months 3 months $ Growth Growth Growth United States2 Specialties US$7.2 bn 5.0% 5.2% 6.0% Australia Majors 3.5% 1.4% 5.5% Specialties 1.9% 1.9% 2.5% Specialties (incl.Mini majors*) 3.9% 3.9% 4.6% Total A$17.7 bn 4.0% 3.2% 5.2% United Kingdom
Slide 16: Financial Review
Financial Review • Income Statement • Distribution Statement • Balance Sheet • Property Investments 16
Slide 17: Income Statement
Income Statement A$ million 6 months to 6 months to June ’06 June ’05 Property income 1,689 1,437 Contribution from equity accounted investments 118 92 Property revaluations 2,695 1,223 Other income 22 27 Currency derivatives (30) 16 Total Income 4,494 2,795 Total expenses (560) (476) Goodwill arisi
Slide 18: Income Statement by Business Segment
Income Statement by Business Segment 6 months to June ‘06 A$ million Development Operational & New Corporate Total Business Property income 1,676 13 - 1,689 Net contribution from equity accounted properties 104 (4) 18 118 Property revaluations – consolidated - 123 2,139 2,262 Property revaluations –
Slide 19: Operational Segment Analysis
Operational Segment Analysis A$ million Operational Segment 6 months June ’06 Actual vs June ’06 June ’05 June ’05 June ’05 Actual (Constant Actual (Constant currency)1 currency) Property income 1,676 1,446 1,422 15.9% Net contribution from equity accounted properties 104 117 115 JV project and prop
Slide 20: Net Property Income – by Region
Net Property Income – by Region1 Millions 6 months to 6 months to % June ’06 June ’05 Change Australia & New Zealand (A$ million) A$ 592 A$ 532 11.3% United States (US$ million) US$ 460 US$ 430 7.0% United Kingdom (£ million) £ 30 £ 33 (9.1%) Total NOI (A$ million) A$ 1,283 A$ 1,169 9.8% 1 Includes
Slide 21: Distribution Statement
Distribution Statement 6 months to June ’06 Cents per A$m Security Operational Segment Earnings 804 45.9c Distribution Hedging1 83 4.8c Distribution Available 887 50.7c Plus: Project Profits 128 7.3c Distribution including Project Profits 1,015 58.0c Distribution retained (61) Distribution 954 54.5c
Slide 22: Balance Sheet
Balance Sheet A$ million 30 June ’06 31 Dec ’05 Cash 254 200 Property investments - Shopping centres 36,282 35,074 - Work in progress 2,637 1,819 - Property held for redevelopment 1,323 730 Net Investments in equity accounted entities 3,956 3,468 Other assets 1,781 1,760 Total assets 46,233 43,051 I
Slide 23: Property Investments
Property Investments • Change in value of gross property investments A$ billion Gross property investments as at 31 December ’05 42.6 Revaluations 2.7 Redevelopment expenditure 0.9 Acquisitions 0.6 Disposals (0.7) Gross property investments as at 31 December ’05 (pre exchange rate impact) 46.1 Excha
Slide 24: Development Segment Assets
Development Segment Assets At 30 June ‘06 A$ million Property held for WIP1,2 Total redevelopment3,4 - Australia & New Zealand 364 184 548 - United States 1,343 443 1,786 - United Kingdom 1,416 763 2,179 Total 3,123 1,390 4,513 Consolidated 3,960 Equity Accounted 553 Total 4,513 1 Work in progress -
Slide 25: Group Overview
Group Overview • Westfield Group is the pre eminent owner of super regional shopping centre assets globally • The quality and market penetration of those assets is a unique feature of the Group’s business • Our intensive management at an operational level is a key driver for income growth from exist
Slide 26: Westfield Group Appendix Results Presentation
Westfield Group Appendix Results Presentation Half Year Result ended 30 June 2006 26
Slide 27: Appendices
Appendices Page Number • Segment Overview………………………………………………………………………………….…...28 • Investments Under Management...…………….……………..……………………………………….29 • Assets by Business Segment…………………………………………………………………………..30 • Current Projects …………………………………………………………………………………………31 • Comparable Retail Sales Growth by Ca
Slide 28: Business Reporting – Segment Overview
Business Reporting – Segment Overview IFRS Reported Results Development & Operational Segment Corporate Segment New Business Segment • Net property income from • Revaluation of developments • Revaluation of existing centres existing shopping centres • Development expenses • Change in value of financ
Slide 29: Investments Under Management
Investments Under Management A$ million Property investments as at 30 June 2006 Equity Investments Westfield JV Partner Accounted JV Total Under Group Interest Share Share Management Gross property investments 36,282 4,962 41,244 9,122 50,366 Work in progress 2,637 486 3,123 1,869 4,992 Property hel
Slide 30: Assets by Business Segment
Assets by Business Segment1 6 months to June ‘06 A$ million Development & Operational Total New Business Shopping centres Consolidated 36,125 157 36,282 Equity accounted 4,905 57 4,962 41,030 214 41,244 Work in progress Consolidated - 2,637 2,637 Equity accounted - 486 486 Properties held for future
Slide 31: Current Projects – United States
Current Projects - United States - Approx US $1.8 billion Total Cost1 Anticipated Forecast Yield Range US $million Completion Capital (Olympia, Washington) 50 9.0 – 9.5% Qtr 4 ‘06 Century City (Los Angeles, California) 170 11.0 – 11.5% Qtr 4 ‘06 San Francisco (San Francisco, California) 4602 8.6 – 9
Slide 32: Current Projects – Australia & New Zealand
Current Projects - Australia & New Zealand – Approx A$810 million Total Cost1 Anticipated Forecast A$ million Yield Range Completion Newmarket (Auckland) NZ33 12.2 – 12.5% Qtr 3 ‘06 Liverpool (Sydney) 2052 9.1 – 9.4% Qtr 4 ’06 Chermside (Brisbane)3 200 10.1 – 10.4% Qtr 4 ’06 Chartwell (Hamilton) NZ4
Slide 33: Current Projects – United Kingdom
Current Projects - United Kingdom - Approx £1.8 billion Total Cost Anticipated Forecast Yield Range £ million Completion Derby 3401 2 8.25 – 8.75% Late ‘07 White City 1,6003 5.25 – 5.75% 2H ’08 1 Includes project profits 2 Westfield Group share 50% - approximately £170 million 3 Westfield Group shar
Slide 34: Comparable Retail Sales Growth by Category - Australia
Comparable Retail Sales Growth by Category - Australia Period to 30 June 2006 12 months 6 months 3 months Department Stores 3.4% 0.4% 8.8% Discount Dept. Store 0.9% (1.4%) 4.3% Supermarkets 3.8% 3.1% 3.6% Mini Majors 13.0% 12.9% 13.8% Cinemas (1.3%) 6.0% 6.4% Fashion 3.6% 3.4% 4.4% Food Catering 2.7
Slide 35: Comparable Retail Sales Growth by Category - United States
Comparable Retail Sales Growth by Category - United States Period to 30 June 2006 12 months 6 months 3 months Fashion 5.4% 3.9% 5.6% • Women’s ready to wear 6.4% 6.1% 7.7% • Unisex 3.8% 1.6% 3.9% Jewellery 1.6% 3.7% 2.2% Leisure 6.1% 6.8% 7.0% Food retail 4.4% 5.2% 5.0% General retail 4.9% 7.2% 8.2%
Slide 36: Funding
Funding Facility Mix – 30 Jun 2006 Facility Maturity Profile – 30 Jun 2006 25% CMBS/Other 20% Secured Bank 24% Facilities 15% 44% 10% 5% Capital Markets 0% 32% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 • Interest Rate Profile as at 30 June 2006 – Weighted average interest cost of 4
Slide 37: Operational Segment Borrowings
Operational Segment Borrowings At 30 June ’06 At 31 Dec ’05 Interest bearing liabilities 18,652 17,666 Finance lease liabilities 135 139 Other financial instruments 1,663 1,753 Share of equity accounted interest bearing liabilities 1,593 1,530 Total borrowings 22,044 21,088 Total borrowings 22,044 2
Slide 38: Interest Rate Hedging Profile
Interest Rate Hedging Profile INTEREST HEDGING PROFILE* A$ interest US$ interest payable £ interest payable A$ interest payable receivable Fixed Fixed Fixed Fixed As at A$ M US$ M £M A$ M Rate % Rate % Rate % Rate % Jun 2006 5,622.5 6.20% (12,012.7) 4.39% (1,566.4) 5.56% (3,111.8) 6.58% 2006 5,787.0
Slide 39: Currency Hedging Profile
Currency Hedging Profile FOREIGN CURRENCY DENOMINATED BALANCE SHEET HEDGING MATURITY PROFILE Cross currency swap receivable/(payable) Maturing during period ended Dec A$ M US$ M £M NZ$ M EUR M 2006 98.2 (75.0) - - - 2007 127.9 (75.0) - - - 2008 (94.5) - - 112.5 - 2009 862.7 (600.0) - - - 2010 590.2
Slide 40: Currency Hedging Profile (continued)
Currency Hedging Profile (continued) FOREIGN CURRENCY DENOMINATED NET INCOME HEDGING MATURITY PROFILE Sell US$ Forward Exchange Contracts Sell NZ$ Forward Exchange Contracts Maturing during US$ M Hedge Rate* Contract Rate NZ$ M Hedge Rate* Contract Rate period ended Dec 2006 (263.1) 0.6233 0.5187 (1
Slide 41: Key Financial Ratios
Key Financial Ratios Financial ratios per the Westfield Group’s bond offerings • Net debt as a % of assets 41.7% • Secured debt as a % of assets 12.5% • EBITDA to interest expense 3.4 times • Unsecured assets as a % of unsecured debt 213% 41
Slide 42: Exchange Rates
Exchange Rates • Income Statement - average exchange rates for the 6 months to 30 June 2006: - AUD/USD 0.7434 (6 months to 30 June 2005: AUD/USD 0.7727) - AUD/GBP 0.4151 (6 months to 30 June 2005 : AUD/GBP 0.4125) - AUD/NZD 1.1556 (6 months to 30 June 2005 : AUD/NZD 1.0792) • Balance Sheet - exchang