Slide 1: 2013 Full Year Results
eS FEDERATION CENTRES 2013 Full Year Results
Slide 2: Outline
Outline 1 1. IIntroduction t d ti Steven Sewell, Managing Director & CEO 2. Financial Results Tom Honan, Chief Financial Officer 3. Operational Performance Mark Wilson, Chief Operating Officer 4. Redevelopment Business Jonathan Timms, EGM ‐ Development & Asset Strategy 5. Strategy and Outlook Steven
Slide 3: Introduction
Introduction Steven Sewell
Slide 4: FY13 Key Financial Highlights
FY13 Key Financial Highlights Financial Property Asset Organisational Performance Management Development Excellence Key Metrics FY13 FY121 Statutory Net Profit/(Loss) $212.7m ($222.9m)2 Underlying Earnings $224.4m $123.2m Underlying Earnings per Security (cents) 15.8 9.2 Distribution per Security (c
Slide 5: FY13 Achievements
FY13 Achievements Financial Property Asset Organisational Performance Management Development Excellence Transformational Year Acquisitions & Redevelopment R d l Capital Released Credit Rating Improved Financing Underpinned p byy continued robust operating p g performance p 5
Slide 6: Financial Results
Financial Results Tom Honan
Slide 7: Segment Income Statement
Segment Income Statement Financial Property Asset Organisational Performance Management Development Excellence Segment Income Statement1 for year ended: 30‐Jun‐13 30‐Jun‐122 $m $m Direct property investment income 309.5 191.5 Syndicate investment income 22.0 16.1 Investment Income 331.5 207.6 Proper
Slide 8: Segment Balance Sheet
Segment Balance Sheet Financial Property Asset Organisational Performance Management Development Excellence • Debt Segment headroom Balance Sheet1 as capacity at: 30-Jun-13 30-Jun-12 Assets $m $m Cash 72.2 182.4 • Managed funds reduction p y ((Held for Sale)) Direct Property 371.4 - Direct Property
Slide 9: Reconciliation of AFFO
Reconciliation of AFFO Financial Property Asset Organisational Performance Management Development Excellence • 89% pay out ratio on Reconciliation from Underlying Earnings to AFFO FY13 FY12 Underlying Earnings $m $ $m $ Reported Underlying Earnings 224.4 123.2 Adjusting for FFO: Rent Free Amortisati
Slide 10: Review of Capital Transactions
Review of Capital Transactions Financial Property Asset Organisational Performance Management Development Excellence FY13 Dispositions p Settlement Interest FDC Share WACR $m Into Co‐ownership Arrangements ISPT1 July 2013 50% (371.4) 7.3% Challenger June 2013 50% (317.0) 7.2% Other dispositions • $1
Slide 11: Improved Financing
Improved Financing Financial Property Asset Organisational Performance Management Development Excellence Reducing R d i Cost C t off Debt D bt Hedge H d Profile P fil FDC Cost of debt (exc Establishment Fees) Average hedged Weighted average hedge rate (RHS) Million • Debt facilities restructured 10.
Slide 12: Robust Financial Position
Robust Financial Position Financial Property Asset Organisational Performance Management Development Excellence •Property Ownership accounts for •Revised interest rate hedging profile •Upgrade of IT systems through almost 90% of Total Income implementation of Yardi Voyager •Refinement of lender grou
Slide 13: Operational Performance
Operational Performance Mark Wilson
Slide 14: Portfolio Overview
Portfolio Overview Financial Property Asset Organisational Performance Management Development Excellence FDC Portfolio Syndicate & As at 30 June 2013 Externally Managed Total Managed2 Wholly Owned Co‐Owned1 Total Portfolio No. of Properties 38 9 47 27 73 GLA (000’s sq.m) 679.4 499.5 1,178.9 317.4 1,
Slide 15: FDC Operational Achievements
FDC Operational Achievements Financial Property Asset Organisational Performance Management Development Excellence FDC Portfolio Jun‐13 Jun‐12 No. of Shopping Centres 47 41 Comparable NOI Growth – Stabilised1 2.8% 3.5% Sub‐regionals driving O Occupancy 99 5% 99.5% 99 5% 99.5% NOI growth Annual Retai
Slide 16: FDC Leasing Results
FDC Leasing Results Financial Property Asset Organisational Performance Management Development Excellence Specialty Leasing Metrics Jun‐13 Jun‐12 Total Leasing Deals 710 627 Specialty Lease Renewal Rate 80% 80% I Income R Renewed d $44 2 $44.2m $36 5 $36.5m % of Total Portfolio Annual Rent 10.5% 9.5
Slide 17: FDC Sales Review
FDC Sales Review Financial Property Asset Organisational Performance Management Development Excellence FDC Sales S l Category C t Analysis A l i Category Annual Sales MAT Portfolio ($m) Change1 Composition Supermarkets 2,663.0 4.0% 38% FDC Specialty Sales Analysis1 4 0% 4.0% Specialties 2,568.8 2.9%
Slide 18: FDC Strong Supermarket Sales
FDC Strong Supermarket Sales Financial Property Asset Organisational Performance Management Development Excellence Wesfarmers W f and d Woolworths W l h brands b d strong performers f in i FDC portfolio f li • Over 55% of FDC comparable Coles and Woolworths stores FDC Coles and Woolworths Sales per
Slide 19: FDC Expansive and Diversified Retail Mix
FDC Expansive and Diversified Retail Mix Financial Property Asset Organisational Performance Management Development Excellence Extensive Retail Mix with Circa 3,800 Leases1 Lease Expiry Profile by Income Padsites 25% 2% Mini Majors Circa 70% of income secured to leases expiring in FY16 and 22% 21% G
Slide 20: Stability of FDC Operating Performance
Stability of FDC Operating Performance Financial Property Asset Organisational Performance Management Development Excellence Portfolio P f li hash demonstrated d d consistent i returns • FDC portfolio has provided consistent FDC Portfolio FY09 FY10 FY11 FY12 FY13 returns Comp NOI Growth 1.5% 3.7% 3.
Slide 21: Redevelopment Business
Redevelopment Business Jonathan Timms
Slide 22: Near Term Projects
Near Term Projects Financial Property Asset Organisational Performance Management Development Excellence Five year development pipeline formed based on three key phases: Phase 1 Approved or advanced planning Expected to commence in FY14 FDC % FY14 Projects Status Total Cost1 FDC Cost1 Project Summar
Slide 23: Medium term Development Pipeline
Medium term Development Pipeline Financial Property Asset Organisational Performance Management Development Excellence Five year development pipeline formed based on three key phases: Phase 2 Concept and feasibility advanced Expected to commence in FY15 Phase 3 Concept development stage Expected to
Slide 24: Pipeline Analysis
Pipeline Analysis Financial Property Asset Organisational Performance Management Development Excellence Regional R i l assets represent greatest proportion i off redevelopment d l spend d Total Pipeline Spend Total Pipeline by Financial Year by Asset Type FDC redevelopment spend forecast Gross redev
Slide 25: Understanding the Opportunity
Understanding the Opportunity Financial Property Asset Organisational Performance Management Development Excellence Pipeline Sales Productivity vs Benchmark Average Specialty Sales (psm) on Pipeline Assets Urbis Average $10,000 $8,000 $6,000 $4,000 $2,000 $‐ Regional Sub‐regional Convenience • Spend
Slide 26: Cranbourne Case Study
Cranbourne Case Study Financial Property Asset Organisational Performance Management Development Excellence Overview O i off Cranbourne C b Redevelopment R d l t • 34,000sqm sub‐regional shopping centre with plans to increase to 44,000sqm • Located in one of Australia’s top 5 growth corridors • Comm
Slide 27: Strategy & Outlook
Strategy & Outlook Steven Sewell
Slide 28: Organisational Excellence
Organisational Excellence Financial Property Asset Organisational Performance Management Development Excellence F Four key k areas off focus f • Talent • Attraction and retention of high calibre people • Flexible careers for our people • Innovation • Implementing state of the art systems and process
Slide 29: Realising Our Vision
Realising Our Vision Financial Property Asset Organisational Performance Management Development Excellence Engaging Key Business Drivers Consumer Experiences Financial Property p y Asset g Organisational Performance Management Development Excellence Strong • Capital discipline • NOI • Pipeline • Cul
Slide 30: Growth Levers
Growth Levers Financial Property Asset Organisational Performance Management Development Excellence Incremental I l performance f levers l spread d across future f years to drive d i EPS growth h Organic NOI Growth and Cost Focus FY13 debt restructure Syndicate acquisitions System Improvemen
Slide 31: FY14 Outlook
FY14 Outlook Financial Property Asset Organisational Performance Management Development Excellence • FY14 EPS guidance range of between 16.5 – 16.8 cents per security, subject to any unforeseen events • Effective annual EPS Growth for FY14 between 4% – 6% based on guidance • Future payout ratio expe
Slide 32: Key Themes
Key Themes Financial Property Asset Organisational Performance Management Development Excellence • Resilient earnings stream underpinned by our high exposure to Supermarkets and non discretionary retail non‐discretionary • Predictable cash flows • Disciplined financial management and strong balance
Slide 33: Appendices
Appendices
Slide 34: Distribution Reconciliation for FY13
Distribution Reconciliation for FY13 $m 400 350 300 250 200 150 100 50 Direct Managed Services Overheads, Financing Underlying Investment Stamp duty Other non Net profit Distribution property funds income net of costs profit property expenses distributable investment investment recoveries revaluatio
Slide 35: Summary of Syndicates
Summary of Syndicates Year Syndicate2 Strategy GAV Liabilities FDC Equity External Equity FEM $m $m $m $m FY14 RDP37 Windup 71.5 24.1 28.1 19.3 Yes RDP34 Windup 42.8 8.7 16.5 17.6 No 1 RDP27 Windup 95.4 60.5 21.6 13.3 Yes RDP19 Windup 25.8 6.8 2.1 16.9 No 1 RDP10 Windup 65.7 37.7 7.1 20.9 Yes RDP25
Slide 36: Expansive Retail Management Platform of 73 Shopping Centres
Expansive Retail Management Platform of 73 Shopping Centres $6.5 billion Regional Centres ‐ 1 Sub‐regional Centres ‐ 4 Convenience Centres ‐1 Sub‐regional Centres ‐ 6 assets under Convenience Centres ‐ 9 Convenience Centres ‐ 8 Other ‐ 2 management 1 <1% by Value 17 14% by 13 24% bby Value Over 4,60
Slide 37: Key FDC Portfolio Retailers
Key FDC Portfolio Retailers Top 10 Retailers Top 10 Retail Groups Rank Retailer Retailer Type Number of % of total Rank Retailer Number of % of total Credit stores income stores income rating A‐ / A3 1 Supermarket 30 6.7% 1 78 14.3% A‐ / A3 2 Supermarket 28 5.8% 2 63 10.6% Discount Department 3 16 4
Slide 38: FDC Portfolio Information
FDC Portfolio Information Sales Analysis Jun‐13 vs Jun‐12 Sales Analysis by State1 6.0% Category Sales Volume MAT Change1 MAT Change1 ($m) Jun‐13 Jun‐12 5.0% Jun‐13 Supermarkets 2,663.0 4.0% 1.4% 4.0% MAT Growtth Specialties 2,568.8 2.9% 0.0% 3.0% Discount Department Stores 998.1 2.4% ‐1.0% 2.0% Min
Slide 39: FDC Property Portfolio – 30 June 2013
FDC Property Portfolio – 30 June 2013 FDC Share of Valuation ($m) Capitalisation Rate Annual Retail Sales ($m) Centre Specialty Specialty FDC Occupancy Sales Sales Occupancy 1 Centre State Centre Type Ownership Jun‐13 Dec‐12 Jun‐13 Dec‐12 GLA sqm Rate Jun‐13 Dec‐12 ($psm) ($psm) Cost Bankstown NSW R
Slide 40: FDC Property Portfolio – 30 June 2013 cont.
FDC Property Portfolio – 30 June 2013 cont. FDC Share of Valuation ($m) Capitalisation Rate Annual Retail Sales ($m) Centre Specialty Specialty FDC Occupancy Sales Sales Occupancy 1 Centre State Centre Type Ownership Jun‐13 Dec‐12 Jun‐13 Dec‐12 GLA sqm Rate Jun‐13 Dec‐12 ($psm) ($psm) Cost The Glen
Slide 41: Portfolio Overview as at 31 July 2013
Portfolio Overview as at 31 July 2013 FDC Portfolio Syndicate & As at 31 July 2013 Externally Managed Total Managed2 Wholly Owned Co‐Owned1 Total Portfolio No. of Properties 34 16 50 22 71 GLA (000’s sq.m) 547.5 687.0 1,234.5 251.8 1,409.8 Number of Tenancies 1,776 2,144 3,920 739 4,583 Annual Retai
Slide 42: Our Ethos
Our Ethos At Federation Centres, we believe in partnering with our stakeholders to provide engaging consumer experiences for our local communities. At the heart of our success is our team at Federation Centres who are p passionate about delivering on our brand promise and helping to drive sustainabl
Slide 43: Disclaimer
Disclaimer This document is a presentation of general background information about the activities of Federation Centres (ASX:FDC) current at the date of lodgement of the presentation (18 August 2013). It is information in a summary form and does not purport to be complete. It is to be read in conjun