Dexus Convenience Retail REIT · ASX:DXC
Dexus Convenience Retail REIT — APN Property Group — FY2014 Earnings Presentation
38 slides from Dexus Convenience Retail REIT's earnings presentation, Aug 27, 2014
Slide 1: FY2014 Results Presentation
FY2014 RESULTS PRESENTATION 27 AUGUST 2014
Slide 2: Contents
Contents FY2014 Highlights Financial Results Group Performance Funds Management Platform Outlook Appendices
Slide 3: FY2014 Highlights
FY2014 HIGHLIGHTS APN | Property Group
Slide 4: FY2014 Highlights
FY2014 Highlights Financial Results Statutory profit after tax of $7.4 million, up 261% compared to prior comparative period (pcp) Net funds management income $20.5 million up 51% over pcp Operating earnings1 before tax of $6.8 million up 733% over pcp Diluted earnings2 per share of 3.93 cen
Slide 5: Financial Results
FINANCIAL RESULTS APN | Property Group 5
Slide 6: Income statement
Income statement Highlights Income Statement ($’000s) FY2014 FY20131 Change Total Net Income up 56% (total operating costs up 6%) Funds management fees 10,153 8,245 ▲ 23% over pcp Performance & transaction fees 6,726 2,132 ▲ 215% Strong growth in funds management fees Asset & project management
Slide 7: Balance sheet and capital management
Balance sheet and capital management Balance sheet Balance Sheet ($’000s) FY2014 FY2013 Cash of $5.8 million ($5.0 million required for licence) Cash 6,0341 7,4091 Co-investments total $46.1 million Co-investments 46,077 15,456 Net tangible assets of $47.2 million Other assets 11,519 12,421 Eq
Slide 8: Funds under management
Funds under management1 National Storage Net FuM increase Property Trust and Newmark APN Auburn across real estate IPO and Launch ~$90m of acquisitions / other Realisation Property Fund securities platform of $404m Fund growth Events $493m ($212m) $58m $2,023m $108m $1,577m Securities Securities Dir
Slide 9: Group Performance
GROUP PERFORMANCE APN | Property Group 9
Slide 10: Group Overview
Group Overview $1,042m $325m Funds Under Management Funds Under Management 6 Securities Healthcare 1 Funds Fund $252m $404m Funds Under Management Funds Under Management Direct Industria 5 1 Funds Fund 10
Slide 11: Real Estate Securities
Securities Real Estate Securities Real Estate Securities Funds Highlights Total FUM up 13% to over $1.0 billion APN AREIT Fund net inflows averaging approximately APN Asian Asset Income Fund $14 million per month Strong APN AREIT Fund performance, outperformed benchmark over 1, 3 and 5 year ti
Slide 12: APN AREIT Fund
Securities APN AREIT Fund Reflecting broad-based support from the market .... Rated one of Australia’s leading property securities funds Consistent income returns by actively managing a portfolio of high yielding AREITs with lower risk than the market Current distribution yield of ~7.00%pa pai
Slide 13: Healthcare
Healthcare Healthcare Highlights Announced $108.6 million of property transactions Raised $82.8 million in new equity through two equity raisings Total return of 30%, outperforming the S&P/ASX 300 Property Trust Accumulation Index return of 11% Outlook Continue active portfolio management to
Slide 14: Industria
Industria Industria Highlights IPO completed successfully in December 2013 Distribution yield of 8.20% on IPO price – PDS forecasts Key metrics delivered Market Capitalisation1 $242.5m Income focussed REIT Total Funds Under Management $404.0m Included in the S&P/ASX 300 index Forecast FY15 D
Slide 15: Direct Funds
Direct Direct Funds Direct Funds Highlights Delivered identified leasing and property management opportunities for 541 St Kilda Road Newmark APN Auburn Property Fund APN 541 St Kilda Road Fund property realised for $35.75m, a 28% premium to purchase price Key metrics Established Newmark APN Au
Slide 16: APN 541 St Kilda Road Fund
Direct APN 541 St Kilda Road Fund Property Acquisition Leasing Disposal Management APN identified the property with 80% occupied on acquisition Identified $30,000 pa of additional Sale completed August 2014 attractive metrics, location and Within 4 months of acquisition APN recoverable out
Slide 17: Newmark APN Auburn Property Fund
Direct Newmark APN Auburn Property Fund Acquired in conjunction with Newmark Property Group in June 2014 Key metrics Strategically located on Parramatta Road in Western Sydney Acquired June 2014 $25 million of equity raised from institutional and high net wealth Total Assets $58m investors Com
Slide 18: Funds Management Platform
FUNDS MANAGEMENT PLATFORM 18
Slide 19: Funds Management Platform overview
Funds Management Platform overview APN is a specialist real estate investment manager with a ‘property for income’ investment philosophy and an active management approach – we focus on delivering investment performance with outstanding service to our clients Focused solely on real estate and real
Slide 20: Established Equity Raising and Distribution Platform
Established Equity Raising and Distribution Platform Listed and unlisted equity ~36% of FUM listed raising capabilities Strong FY14 performance across listed and unlisted funds (investment performance and FUM growth) Retail and institutional equity Strong retail distribution capability capital
Slide 21: Property Platform with scale and multiple capabilities
Property Platform with scale and multiple capabilities $1.0 billion of properties across platform $325m $134m Frankston Private Healthcare Industrial QLD $362m 16 Office $176m 12 Retail $39m 3 Healthcare $146m $138m $384m 140 Sharps Road, Tullamarine Retail Office NSW $273m 4 Retail $80m 4 Office $1
Slide 22: NTA Per Share Analysis
NTA Per Share Analysis – attractive implied platform valuation 30 6.7 Market implied value of funds management 25 platform of ~6.7 cents per share 20 A$ cents per share 15 21.8 28.5 1 10 5 Cash 0 Net Tangible Assets Share Price 1. Analysis and APN share price as at market close 30 June 2014 22
Slide 23: Outlook
OUTLOOK APN | Property Group 23
Slide 24: APN is well positioned for further growth
APN is well positioned for further growth... 1 Established funds management business with strong track record over 18 years Multiple capital raising channels including deep retail distribution channel demonstrating 2 significant capital raising capability 3 Specialist investment manager focusing sol
Slide 25: With supportive current key market drivers
... with supportive current key market drivers Australian superannuation assets $1.8 trillion1; 6 forecast to grow to $3 trillion by 20202 Income-orientated investment products are 7 attractive assets for superannuation investors Life expectancy uncertainty contributing to preference for capital p
Slide 26: Outlook and earnings guidance
Outlook and earnings guidance Outlook Now in growth mode with new management structure and team Four quality established businesses – each with distinct growth A specialist real opportunities estate investment Quality property investments proving attractive for income-focused investors – suppo
Slide 27: Appendices
APPENDICES APN | Property Group 27
Slide 28: Appendix A: Financial Information
APPENDIX A FINANCIAL INFORMATION 28
Slide 29: Financial Performance
Financial Performance Income Statement FY2014 FY20131 $’000s $’000s Net Funds Management Income Fund management fees 10,153 8,245 Performance & transaction fees 6,726 2,132 Asset & project management fees 1,186 853 Registry, accounting & other fees 2,427 2,329 Total Net Funds Management Income 20,49
Slide 30: Financial Performance: Operating Cashflow
Financial Performance Operating Cashflow $’000s FY2014 FY2013 10,000 Cashflow Reconciliation 1,833 (3,556) $’000s $’000s 2,383 9,047 9,000 Statutory profit after tax 7,447 2,063 8,000 7,447 Add/(deduct): 7,000 940 Non-controlling interests 1,833 (695) 6,000 Mark to market revaluations (3,556) (163)
Slide 31: Operating Profit Before Tax Reconciliation
Operating Profit Before Tax Reconciliation $ ‘000s 10,000 1,080 (666) 9,000 (1,341) 8,000 98 333 4,594 6,825 7,000 6,000 5,000 4,000 3,000 1,908 2,000 1,000 819 - Operating profit Increase in funds Increase in Increase in asset Increase in Increase in co- Increase in Increase in MI Operating profit
Slide 32: Balance sheet
Balance sheet $’000s FY2014 FY2013 Cash and cash equivalents 6,034 7,409 Trade and other receivables 6,165 5,245 Co-investments 46,077 15,456 Other assets 366 440 Total Current Assets 58,642 28,550 Intangible assets 4,079 2,441 Deferred tax assets 4,643 6,385 Other assets 345 351 Total Non-Current A
Slide 33: Appendix B: Funds Under Management Summary
APPENDIX B FUNDS UNDER MANAGEMENT SUMMARY 33
Slide 34: Funds Under Management Summary
Funds Under Management1 Summary Fee Basis Co- Funds Under Funds Sector Investors investment Management Management Performance Other Stake APN AREIT Fund Property Securities Retail & Institutional $619m − APN Property for Income Fund Property Securities Retail & Institutional $235m − APN Property
Slide 35: Appendix C: Company Overview
APPENDIX C COMPANY OVERVIEW 35
Slide 36: Company overview
Company overview Overview Share Price and Volume APN Property Group (ASX: APD) is an ASX listed, Melbourne-based Volume Price 2,000 $0.34 specialist real estate fund manager 1,800 $0.32 1,600 $2.0bn FUM1 (30 June 2014) across suite of listed, private and 1,400 securities funds $0.30 1,200 $0.28
Slide 37: Disclaimer
Disclaimer The financial information included in this presentation is based on APN Property Group’s financial statements and results that have been prepared in accordance with the Corporations Act 2001 (Cth), applicable Accounting Standards and Interpretations and in compliance with other applicable
Slide 38: Contact details
Contact details Chris Aylward Tim Slattery Michael Groth Executive Chairman Director, Corporate Development Chief Financial Officer Ph: (03) 8656 1000 Ph: (03) 8656 1031 Ph: (03) 8656 1026 chris.aylward@apngroup.com.au tim.slattery@apngroup.com.au mgroth@apngroup.com.au APN Property Group Limi