Slide 1: Business Update and Equity Raising
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES ABACUS PROPERTY GROUP Business Update and Equity Raising 8 December 2020
Slide 2: Important notice and disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Important notice and disclaimer Important information The distribution of this presentation in other jurisdictions outside Australia may also be restricted by law and any such restrictions should be observed. Any failure to comply with such restri
Slide 3: Important notice and disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Important notice and disclaimer Investment risk To the maximum extent permitted by law, Abacus and its Beneficiaries, the Underwriter and its respective affiliates, related bodies corporate, directors, officers, partners, employees, advisers and a
Slide 4: Executive summary
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Executive summary Abacus is now a strong asset backed, annuity style investment house following the deployment of $926 million of capital into acquisitions post FY19 including $205 million in FY21 to date Self Storage: Multi-pronged growth str
Slide 5: Executive summary (continued)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Executive summary (continued) In order to repay debt and increase acquisition capacity1 for continued growth over the medium term, Abacus is undertaking a fully underwritten2 1-for-4.8 accelerated non-renounceable pro rata entitlement offer to r
Slide 6: Business update
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Business update
Slide 7: Self Storage portfolio – trading snapshot
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Self Storage portfolio – trading snapshot Resilient performance with average rent and occupancy up from 30 June 2020 KEY METRICS Q1 FY21 FY20 Passing yield1 6.6%2 6.2% Average rent1 $283psm3 $281psm Occupancy1 89.7% 88.1% RevPAM 1 $2513 $248 RevPA
Slide 8: Office portfolio – trading snapshot
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Office portfolio – trading snapshot Positive leasing and asset management outcomes delivered over Q1 FY21 KEY METRICS Q1 FY21 FY20 WACR1 5.45%2 5.47% WALE 3,4 4.0 years 3.6 years Occupancy4 91.4% 91.5% Leased5 28,041sqm 19,000sqm Average rent revi
Slide 9: Consistent capital deployment
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Consistent capital deployment Abacus has deployed $926 million into Office and Self Storage sectors – in line with stated strategy GEARING AND ACQUISITIONS POST FY19 Pro forma Office Self Storage gearing: 29.3% Jun-20 gearing: 26.5% 108 50 47 118
Slide 10: Balance sheet allocation
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Balance sheet allocation Capital deployed into Office and Self Storage sectors has enhanced portfolio quality and stability of income PRO FORMA BALANCE SHEET1 JUNE 2019 $3.5 billion of Total Assets2 $2.8 billion of Total Assets2 Core Non-core Core
Slide 11: Portfolio composition transitions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Portfolio composition transitions Successful execution of our strategy to deploy capital into Office and Self Storage sectors, in tandem with progress on the sale of non-core assets Total Assets ($ billions) 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Office
Slide 12: Self Storage Portfolio growth
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Self Storage Portfolio growth
Slide 13: Storage King
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Storage King A leading Self Storage operating platform with over 170 stores in Australia and New Zealand, founded in 1996 OVERVIEW In August 2018, Abacus acquired an initial 25% interest in the Self Storage operating platform, Storage King Fol
Slide 14: Self Storage – acquisition track record
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Self Storage – acquisition track record Abacus continues to successfully direct capital towards Self Storage assets that drive income growth and value creation FY21 ACQUISITIONS TO DATE Acquisition of the remaining 75% interest in our operating
Slide 15: Self Storage – acquisition pipeline
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Self Storage – acquisition pipeline Abacus continues to originate a strong pipeline of opportunities through the Storage King platform and market standing IDENTIFIED PIPELINE OF OPPORTUNITIES Acceleration of 100% ownership of Storage King expect
Slide 16: Self Storage – development pipeline
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Self Storage – development pipeline Development opportunities in our existing portfolio are expected to enhance income growth IDENTIFIED DEVELOPMENT PIPELINE 34,500 sqm of NLA delivered across 10 developments post FY19 55,250 sqm of identified
Slide 17: Equity raising
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Equity raising
Slide 18: Equity raising
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Equity raising A 1-for-4.8 accelerated non-renounceable pro rata entitlement offer to raise approximately $402 million – The Entitlement Offer represents 21% of total Abacus Securities currently on issue The Issue Price has been set at $2.90 p
Slide 19: Key metrics, sources and uses
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key metrics, sources and uses Sources and uses Key metrics Sources $m Key metrics Entitlement Offer proceeds $402 Issue Price $2.90 Total $402 Discount to last close 6.5% Discount to 5-day VWAP 7.7% Uses $m Discount to TERP 5.4% Repayment of debt
Slide 20: Indicative timetable
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Indicative timetable Key date Trading halt and announcement of the Entitlement Offer Tuesday, 8 December 2020 Institutional Entitlement Offer opens and closes Tuesday, 8 December 2020 Trading resumes on an ‘ex-entitlement’ basis Wednesday, 9 Decem
Slide 21: Summary
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Summary
Slide 22: Summary
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Summary Following the acquisition of the Storage King self storage operating platform, Abacus is now a fully internalised AREIT with key asset focus in the Office and Self Storage sectors Storage King, will continue to be managed as it is curr
Slide 23: Appendix A
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Appendix A
Slide 24: Pro forma balance sheet
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Pro forma balance sheet Post balance date Pro forma post $m Jun-20 adjustments1 Pro forma Entitlement Offer Entitlement Offer Cash 127.3 127.3 127.3 2 Investment properties 2,652.9 147.9 2,800.8 2,800.8 Equity accounted investments 123.4 (11.1) 11
Slide 25: Capital management
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Capital management Balance sheet well capitalised for future growth opportunities • Adjusting for the Entitlement Offer proceeds, Abacus’ available undrawn debt facilities and cash will be $709 million KEY FINANCIAL METRICS Pro forma1 FY20 • Abacu
Slide 26: Commercial lease expiry profile
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Commercial lease expiry profile Q1 FY21 leasing has driven an improved commercial lease expiry profile Commercial lease expiry profile by rent Q1 FY21 FY20 30% 24% 20% 16% 17% 12% 12% 12% 12% 11% 12% 8% 8% 7% Short term leases FY21 FY22 FY23 FY24
Slide 27: COVID-19 response
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES COVID-19 response SUPPORTING OUR TEAM AND CUSTOMERS Focus on providing safe, secure and healthy workspaces for our team and tenants, public areas and storage facilities Communicating directly to all tenants − Ongoing as COVID-19 situation evol
Slide 28: Key risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key risks
Slide 29: Key risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key risks A number of risks and uncertainties, which are both specific to Abacus and of a more general nature, may affect Business Specific Risks Abacus' business, financial condition and operational results and the value of the Abacus Securities.
Slide 30: Key risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key risks Development People and culture Abacus is involved in the development of Office and Self Storage real estate. While it is Abacus' policy to retain Abacus is reliant on attracting, retaining and developing talented employees and providing
Slide 31: Key risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key risks Acquisition risk – any of the responsible entities of Abacus Trust, Abacus Income Trust or Abacus Storage Property Trust are replaced, or it is proposed to replace any of them as the responsible entity of the relevant trust; As described
Slide 32: Key risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key risks – there is introduced, or there is a public announcement of a proposal to introduce, into the Abacus has also agreed to pay the Underwriter the following fees, subject to the Underwriter satisfying certain Parliament of Australia or any
Slide 33: Key risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key risks The directors of Abacus reserve the right to issue any shortfall (including any excess shortfall) under the Entitlement Inflation and construction costs Offer at their discretion. Any excess shortfall may, subject to the terms of the Und
Slide 34: Key risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key risks Insurance General Risks Abacus holds and purchases insurance, customarily carried by property owners, managers, developers and General economic risks construction entities that provides a degree of protection for its assets, liabilities
Slide 35: Foreign jurisdictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Foreign jurisdictions
Slide 36: Foreign jurisdictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Foreign jurisdictions International Offer Restrictions Language of documents in Canada. Upon receipt of this document, each investor in Canada hereby confirms that it has expressly requested that all documents evidencing or relating in any way to
Slide 37: Foreign jurisdictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Foreign jurisdictions New Zealand Switzerland This document has not been registered, filed with or approved by any New Zealand regulatory authority under the The Stapled Securities may not be distributed in Switzerland and will not be listed on th
Slide 38: Control implications
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Control implications
Slide 39: Major securityholder participation
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Major securityholder participation Calculator Australia is supportive of the Entitlement Offer and intends to take up its full entitlement In addition, Calculator Australia has provided a commitment to sub-underwrite approximately $49 million