Finbar Group Limited · ASX:FRI
Finbar — Shareholder Meeting (October 2022)
59 slides from Finbar's shareholder meeting presentation, Oct 19, 2022
Slide 1: 2022 Annual General Meeting
2022 ANNUAL GENERAL MEETING Ole) SOn iZ iS {
Slide 2: Proxy Votes Received
PROXY VOTES RECEIVED For personal use only Valid proxy forms were received from 153 shareholders representing 198,414,669 shares (72.9% of total issued shares). The proxy results for each resolution will be displayed for each agenda item. 2 2
Slide 3: Resolution 1 – Adoption of Remuneration Report
RESOLUTION 1 – ADOPTION OF REMUNERATION REPORT For personal use only To consider and, if thought fit, to pass, with or without amendment, the following resolution as a non-binding resolution: “That, for the purposes of section 250R(2) of the Corporations Act and for all other purposes, approval is g
Slide 4: Resolution – Re-election of Director – Mr John Chan
RESOLUTION 2 – RE-ELECTION OF DIRECTOR – MR JOHN CHAN For personal use only To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution: “That, for the purpose of clause 13.2 of the Constitution, ASX Listing Rule 14.4 and for all other purp
Slide 5: Resolution – Re-election of Director – Mr Kee Kong Loh
RESOLUTION 3 – RE-ELECTION OF DIRECTOR – MR KEE KONG LOH For personal use only To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution: “That, for the purpose of clause 13.2 of the Constitution, ASX Listing Rule 14.4 and for all other p
Slide 6: FY22 Results Summary
For personal use only FY22 RESULTS SUMMARY
Slide 7: Net Profit
NET PROFIT For personal use only ➢ 24% increase in net profit to $10.98m ➢ 26th consecutive year of profitability 40 35 30 25 20 $m 15 10 5 0 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 -5 7 7
Slide 8: Contribution to Turnover – FY22
Sources of Income JUN21 Riverena 7% CONTRIBUTION TO TURNOVER – FY22 Vue Tower 4% For personal use only 89% One Kennedy Developments Dianella 43% 17% Source of Source of ➢ Core business of property All Earnings Source of Development Income development contributed to 89% of All AllEarnings Income Palm
Slide 9: Segment Contributions FY22
SEGMENT CONTRIBUTIONS FY22 For personal use only Development Finbar to Finbar Interest Activity Rent Sales Rental Property Income Revaluations Admin Other Profit 24.00 22.00 20.00 18.00 16.00 14.00 $m 12.00 10.00 8.00 6.00 4.00 2.00 0.00 Positive Impact Negative Impact 9
Slide 10: Cash
CASH For personal use only $70 $60 ➢ FY end cash position of $33.20m $50 ➢ Nearing the conclusion of extensive $40 project equity spend on Civic Heart, $m Aurora, and The Point where project finance facility drawdowns will soon $30 commence $20 $10 $0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY1
Slide 11: Current Project Debt & Coverage
Current Project Debt & Coverage PROJECT DEBT Debt & Pre-sales Coverage For personal use only $450 $400 ➢ $21.6m facility for Dianella repaid in FY22 $350 ➢ Pre-sales at AT238, Civic Heart, and The $300 Point exceed facility requirements $250 $M ➢ All debt remains project specific $200 FY22 ➢ No corp
Slide 12: Earnings Per Share & Dividends
Earnings Per Share & Dividends 10 DIVIDENDS Cents per share 8 For personal use only 6 4 ➢ Fully franked dividend of 4c per share 2 attributable to FY22 0 ➢ 166.5c fully franked per share paid since inception as property developer Interim Final 8 Cents per share 6 $47.7m in 4 Retained Earnings 2 0 -2
Slide 13: Market Activity Update
MARKET ACTIVITY UPDATE For personal use only
Slide 14: Total Number of Sales Per Month
TOTAL NUMBER OF SALES PER MONTH For personal use only 90 ➢ Strongest sales year since 2015 80 77 1st of RBA’s 50 basis points 74 ➢ Interest rate policy changes are having an rate rise 70 effect 60 57 COVID-19 declared a pandemic 5354 50 50 50 45 4544 44 43 42 42 42 40 40 38 37 37 37 38 36 35 33 34 3
Slide 15: Total Off-the-Plan Pre-Sales Value
TOTAL OFF-THE-PLAN PRE-SALES VALUE For personal use only $600 Millions ➢ The strong sales period has grown pre-sale book to highest level since May 2015 SUBI STRAND & TOCCATA $409m in $500 ACCRUED PRESALES ARBOR NORTH NORWOOD $400 UNISON ON TENTH AURELIA & AIRE MOTIVE LINQ CONCERTO REVA DIANELLA $30
Slide 16: Completed Stock Sell Down
COMPLETED STOCK SELL DOWN For personal use only ➢ Strong sales period has also seen continued reduction in completed stock for sale COMPLETION ➢ Dianella & assorted commercial stock only remaining stock COMPLETION $200 for sale until completion of AT238 in H2 of FY2023 COMPLETION Millions $173 $180
Slide 17: Perth Vacancy Rates & All Unit Rental Rates
PERTH VACANCY RATES & ALL UNIT RENTAL RATES For personal use only Weekly Rent ($) & Vacancy Rate (%) - Perth $900 9.0% $800 8.0% $700 7.0% ➢ Low vacancy & increasing rental prices re-stimulating investor activity $600 6.0% $500 5.0% $400 4.0% $300 3.0% $200 2.0% $100 1.0% $- 0.0% Nov-10 Nov-15 Nov-2
Slide 18: Finbar Projects – Investor Sales v Owner Occupier
FINBAR PROJECTS - INVESTOR SALES V OWNER OCCUPIER PER CALENDAR QTR For personal use only 140 90.0% ➢ Investor activity highest since 2017 80.0% 120 65% 70.0% 61% 100 57% 60.0% 80 43% 50.0% 39% Units 35% 40.0% 60 30.0% 40 20.0% 20 10.0% 0 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 19: Yearly FIRB Sales
YEARLY FIRB SALES For personal use only Units Sold to Foreign Buyers (CY) 100 90 ➢ 7% Foreign Buyer Surcharge Tax 80 introduced in January 2019 still resulting in subdued foreign buyer 70 activity 60 Units 50 ➢ Garden Towers (East Perth) however has reasonable level of foreign 40 support (2022) 30 2
Slide 20: Investment Property Update
INVESTMENT PROPERTY UPDATE For personal use only
Slide 21: Investment Properties
Investment Properties INVESTMENT PROPERTY For personal use only FAIRLANES PELAGO 181 Adelaide Terrace East Perth 23 & 26 Sharpe Avenue Karratha ➢ 7,577 sqm office building ➢ 99 apartments & 21 commercial lots ➢ Leased to AECOM, Ventia, APP, Finbar’s corporate office, ➢ Predominantly leased to corpor
Slide 22: Investment Property Leasing
Investment Property Leasing INVESTMENT PROPERTY – OCCUPANCY LEVELS For personal use only 100 7,000 90 ➢ Fairlanes 97% leased 80 6,000 ➢ Pelago Commercial 70% leased. Recent sale of one commercial 70 5,000 Commercial Sqm NLA 60 Residential Apartments ➢ Pelago Residential 100% leased 4,000 97% 50 100%
Slide 23: Investment Property Values & Gearing Profile
Investment Property Values & Gearing Profile INVESTMENT PROPERTY – BOOK VALUE & DEBT For personal use only $120 ➢ $104.8 million in current book value for Pelago & Fairlanes Equity $100 ➢ $59.1 million in net equity over both Debt projects $80 ➢ Loan to Value Ratio across $m investment property is 4
Slide 24: Development Activity Update
Development Activity Update PROJECT UPDATE For personal use only Effective as at 18/10/2021 24
Slide 25: Completed Projects
COMPLETED PROJECTS For personal use only Effective as at 18/10/2021 25 25
Slide 26: Palmyra East, McGregor Road, Palmyra
PALMYRA EASTConcerto 49 MCGREGOR ROAD, PALMYRA For personal use only Project: Palmyra East consists of 128 one, two and three bedroom apartments. ▪ Status: Completed October 2019 ▪ Ownership: 50% JV with landowner ▪ Value: $50.0 million ▪ Completed: FY19 ▪ Average price: $390,706 ▪ Sales: No. Units
Slide 27: Sabina, Canning Highway, Applecross
SABINA Concerto 908 CANNING HIGHWAY, APPLECROSS For personal use only Project: Sabina is the first stage of the Canning Highway development and consists of 164 one, two, three bedroom apartments, and 3 ground floor commercial lots. ▪ Status: Completed April 2020 ▪ Ownership: 50% JV with landowner ▪
Slide 28: One Kennedy, Kennedy Street, Maylands
ONE KENNEDY Concerto 1 KENNEDY STREET, MAYLANDS For personal use only Project: One Kennedy consists of 120 one, two and three bedroom apartments plus 3 commercial lots. ▪ Status: Completed June 2020 ▪ Ownership: 50% JV with landowner ▪ Value: $53.5 million ▪ Completed: FY20 ▪ Average price: $435,064
Slide 29: Riverena, Rowe Avenue, Rivervale
RIVERENA Concerto 5 ROWE AVENUE, RIVERVALE For personal use only Project: Riverena consists of 125 one, two and three bedroom apartments. ▪ Status: Completed December 2020 ▪ Ownership: 50% JV through SPV ▪ Value: $52.4 million ▪ Completed: FY21 ▪ Average price: $419,491 ▪ Sales: UNDER No. Units UNDE
Slide 30: Aurelia, Harper Terrace, South Perth
AURELIA Concerto 1 HARPER TERRACE, SOUTH PERTH For personal use only Project: Aurelia consists of 118 one, two and three bedroom apartments plus 6 commercial units and 14 office spaces. ▪ Status: Completed May 2018 ▪ Ownership: 50% JV with landowner ▪ Value: ~$129.8 million ▪ Completed: FY18 ▪ Avera
Slide 31: Reva South Perth
Concerto REVA SOUTH PERTH 5 HARPER TERRACE, SOUTH PERTH For personal use only Project: Reva consists of 41 luxury apartments plus 18 commercial lots of ground floor retail and level one office space. ▪ Status: Completed January 2019 ▪ Ownership: Wholly owned through subsidiary ▪ Value: ~$47.0 millio
Slide 32: Vue Tower, Adelaide Terrace, East Perth
VUE TOWER Concerto 63 ADELAIDE TERRACE, EAST PERTH For personal use only Project: Vue Tower consists of 245 one, two and 3 bedroom apartments plus 3 commercial units and 2 office units. ▪ Status: Completed June 2019 ▪ Ownership: 50% JV with landowner ▪ Value: ~$143.6 million ▪ Completed: FY19 ▪ Aver
Slide 33: Dianella Apartments, Chester Avenue, Dianella
Concerto DIANELLA APARTMENTS 36 CHESTER AVENUE, DIANELLA For personal use only Project: Dianella Apartments consists of 128 one, two and three bedroom apartments. ▪ Status: Completed August 2021 ▪ Ownership: Wholly owned through subsidiary ▪ Value: ~$62.6 million ▪ Completed: FY22 ▪ Average price: $
Slide 34: Projects Under Construction
Development Activity Update PROJECTS UNDER CONSTRUCTION For personal use only Effective as at 18/10/2022 34
Slide 35: AT238, Adelaide Terrace, Perth
AT238 Concerto 238 ADELAIDE TERRACE, PERTH For personal use only Project: AT238 will consist of 119 one, two and three bedroom apartments plus 2 ground floor commercial on 1,697 Sqm land over 31 levels. ▪ Status: Under Construction ▪ Ownership: 50% JV through SPV ▪ Value: ~$96.9 million ▪ Est. Compl
Slide 36: For personal use only
36 For personal use only
Slide 37: For personal use only
37 For personal use only
Slide 38: Civic Heart, Mends Street, South Perth
CIVIC HEART Concerto 1 MENDS STREET, SOUTH PERTH For personal use only Project: Civic Heart will consist of 309 one, two, three bed apartments plus 2,750sqm of commercial space. ▪ Status: Under Construction ▪ Ownership: 52.5% JV with landowner ▪ Value: ~$419.7 million ▪ Est. Completion: FY24 ▪ Avera
Slide 39: For personal use only
For personal use only 39
Slide 40: Aurora, Kintail Road, Applecross
AURORA Concerto 3 KINTAIL ROAD, APPLECROSS For personal use only Project: Aurora will consist of 118 one, two, three bed apartments plus 3 ground floor commercial. ▪ Status: Under Construction ▪ Ownership: 50% JV with landowner ▪ Value: ~$142.1 million ▪ Est. Completion: FY24 ▪ Average price: $858,1
Slide 41: For personal use only
For personal use only 41
Slide 42: The Point, Rowe Avenue, Rivervale
THE POINT Concerto 31 ROWE AVENUE, RIVERVALE For personal use only Project: The Point will consist of 167 one, two and three bedroom apartments plus 9 ground floor commercial units. ▪ Status: Under Construction ▪ Ownership: 65% JV with landowner ▪ Value: ~$102.1 million ▪ Est. Completion: FY24 ▪ Ave
Slide 43: For personal use only
For personal use only 43
Slide 44: Projects Being Marketed Off-the-Plan
PROJECTS BEING MARKETED OFF-THE-PLAN For personal use only Effective as at 18/10/2021 44 44
Slide 45: Garden Towers, East Perth
Concerto GARDEN TOWERS CNR PLAIN STREET & HAY STREET, EAST PERTH For personal use only Project: Garden Towers East Perth will consist of 331 one, two, three bed apartments, and 13 commercial lots. ▪ Status: Pre-Sales ▪ Ownership: 50% JV through SPV ▪ Value: ~$249.1 million ▪ Est. Completion: FY25 ▪
Slide 46: Development Approval Received
DEVELOPMENT APPROVAL RECEIVED For personal use only Effective as at 18/10/2021 46 46
Slide 47: Romeo (Stage 3 Applecross), Canning Highway
ROMEO (STAGEConcerto 3 APPLECROSS) 912 CANNING HIGHWAY, APPLECROSS For personal use only Project: Stage 3 will consist of approximately 152 one, two, three bed apartments, plus 3 STAGE 3 ground floor commercial lots. ▪ Status: Development Approval Received ▪ Ownership: 50% JV with landowner ▪ Value:
Slide 48: Palmyra West, McGregor Road, Palmyra
PALMYRA WESTConcerto 45 MCGREGOR ROAD PALMYRA For personal use only Project: Palmyra West existing approval is for 130 one, two and three bedroom apartments. ▪ Status: Development Approval Received ▪ Ownership: 50% JV with landowner ▪ Value: TBC ▪ Est. Completion: TBC ▪ Sales: No. Units $ Value TBC
Slide 49: Bel-Air, Great Eastern Highway, Belmont
BEL-AIR Concerto 239 GREAT EASTERN HIGHWAY, BELMONT For personal use only Project: Bel-Air will consist of approximately 194 one and two bedroom apartments, plus two commercial lots. ▪ Status: Development Approval Received ▪ Ownership: Wholly owned through subsidiary ▪ Value: ~$92 million ▪ Est. Com
Slide 50: Lot 888, Rowe Avenue, Rivervale
LOT 888 Concerto LOT 888 ROWE AVENUE, RIVERVALE For personal use only Project: Lot 888 comprises of 2370 square metres of land within The Springs, Rivervale Precinct. ▪ Status: Development Approval received for 6,459m2 NLA commercial office building however in early stages of residential redesign ▪
Slide 51: In Planning, Approval Process, or Design
IN PLANNING, APPROVAL PROCESS, OR DESIGN For personal use only Effective as at 18/10/2021 51 51
Slide 52: Lot 1000, Riversdale Road, Rivervale
LOT 1000 Concerto 32 RIVERSDALE ROAD, RIVERVALE For personal use only Project: Lot 1000 comprises 4,069 square metres of absolute waterfront land with expansive views of the Swan River, Stadium Precinct, and Perth CBD. Will consist of approximately 143 residential apartments. ▪ Status: Awaiting deve
Slide 53: 2 Homelea Court, Rivervale
Concerto 2 HOMELEA COURT CNR ROWE AVENUE AND HOMELEA COURT, RIVERVALE For personal use only Project: 2 Homelea Court will consist of approximately 120 apartments plus two commercial lots. The site is comprised of four vacant blocks totalling 3,770 square metres. ▪ Status: Planning and Design ▪ Owner
Slide 54: Other
OTHER For personal use only Effective as at 18/10/2021 54 54
Slide 55: ABC Building (Harmony), Adelaide Terrace
Concerto ABC BUILDING (HARMONY) 187 ADELAIDE TERRACE, EAST PERTH For personal use only Project: Harmony comprises the former ABC Radio Studios heritage building with a GFA of 3,711sqm over 3 levels. ▪ Status: Undertaking use assessment ▪ Ownership: Wholly owned through subsidiary ▪ Value: TBC 55 55
Slide 56: Current Pipeline – $1.49b Residual Pipeline
$1.49b residual pipeline CURRENT PIPELINE For personal use only $760m under construction 450 400 350 $249m construction starts FY23 300 250 $m 200 150 100 50 0 56 Remaining Stock Value $m Sold Stock Value $m 56
Slide 57: Falling Supply of Perth Apartments
FALLING SUPPLY OF PERTH APARTMENTS For personal use only Apartment Supply – Greater Perth 3500 ➢ Construction cost pressures across sector resulted in far fewer completed apartments delivered in 2022 3000 ➢ Apartments under construction now will 2500 filter through to 2023 - 2025 resulting in contin
Slide 58: Apartments Developed to Date
APARTMENTS DEVELOPED TO DATE For personal use only 592 1452 1452 10000 ➢ 6,655 completed apartments to date 8699 9000 ➢ Additional 1,931 apartments in current pipeline 8000 7247 ➢ Finbar is responsible for developing 10.7% of all 6655 7000 occupied apartments that currently exist in Western Australi
Slide 59: Important Notice
Important Notice For personal use only Some of the information contained in this presentation may contain forward-looking revenue, timeline, and general statements that are subject to various risks, uncertainties, and changes. Forward-looking statements include those containing such words as ‘estima