Australian Unity Office Fund · ASX:AOF
Australian Unity Office Fund — H1 FY2019 Earnings Presentation
28 slides from Australian Unity Office Fund's earnings presentation, Feb 7, 2019
Slide 1: Australian Unity Office Fund 2019 Half Year Results Presentation
Australian Unity Office Fund (ASX: AOF) 2019 Half Year Results Presentation – 7 February 2019 Webcast: https://webcasting.boardroom.media/broadcast/5c3d2565257d2c2aa697eab0 Teleconference details: Australia Toll Free: 1800 558 698 International: +612 9007 3187 Conference ID: 821291 10 Valentine Ave,
Slide 2: Important notice and disclaimer
Important notice and disclaimer The information provided in this presentation has been prepared by Australian Unity Investment Real Estate Limited ABN 86 606 414 368 AFS Licence 477434 (AUIREL), as responsible entity of the Australian Unity Office Fund ARSN 113 369 627 (Fund). The information provid
Slide 3: AOF's results
AOF’s results 5 Eden Park Drive, North Ryde, NSW
Slide 4: AOF's 2019 half year result highlights
AOF’s 2019 half year result highlights Continuing to deliver on strategy 1 Statutory net profit of $13.1 million1 2 Funds From Operations (FFO) 8.7 cpu1 3 Gearing at 30.5%2,3 4 Occupancy increased slightly to 95.1%4 Site Specific Planning Proposal at 2 Valentine Ave, Parramatta 5 endorsed by the Cit
Slide 5: Financial results
Financial results 30 Pirie St, Adelaide, SA
Slide 6: Half year 2019 – key financial metrics
Financial results Half year 2019 – key financial metrics Key metric 1H FY19 1H FY18 Change • Statutory net profit down $13.2 million, mainly due to higher Statutory net profit $13.1m $26.3m -$13.2m valuation increases in 1H FY18 compared to 1H FY19 FFO1 $14.2m $13.1m +$1.1m • FFO and distribution up
Slide 7: Half year 2019 – capital management
Financial results Half year 2019 – capital management 31 Dec 30 Jun Capital Management Change • Debt diversified by three 2018 2018 separate tranches and two Total borrowings1 $202.3m $198.3m +$4.0m major banks (CBA and NAB) • Gearing and borrowings Total debt facilities $220.0m $220.0m No change in
Slide 8: Portfolio management
Portfolio management 32 Phillip St, Parramatta, NSW
Slide 9: Portfolio highlights
Portfolio highlights Solid leasing activity and progress on development opportunity 1 Portfolio occupancy increased to 95.1%1 (95.0% at 30 June 2018) ~4,600 sqm of new leases completed (19 transactions), representing 2 ~4.2% of the portfolio by area2 ~3,000 sqm of completed leases related to space w
Slide 10: Leasing summary
Leasing summary Occupancy increased to 95.1% • 468 St Kilda Road 100% occupied (95.4% at 30 June 2018) following recent leasing success • Occupancy increased at 30 Pirie St to approximately 94% (91.7% at 30 June 2018) following 525 sqm lease • The NSW State Government did not provide notice by 31 De
Slide 11: Valuation summary
Valuation summary Valuations largely reaffirm 30 June 2018 position Current Cap rate 31 Dec 18 Change in Capital value cap rate change1 valuation valuation2 per sqm • All nine assets were independently revalued 30 Pirie St, as at 30 June 2018 7.50% No change $121.5m No change $4,903 Adelaide • Incre
Slide 12: Development update
Development update Next milestone achieved Development opportunity at 2 Valentine Ave, Parramatta (next to existing 10 Valentine Ave building) • On 17 December 2018, the City of Parramatta Council endorsed a Site Specific Planning Proposal to amend the Parramatta Local Environmental Plan 2011 by rem
Slide 13: Portfolio update
Portfolio update Starwood’s Revised Proposal rejected • The Starwood Proposal followed three initial Starwood Proposal Revised Proposal unsolicited proposals from Starwood ranging from an offer value of $2.436 per unit to Headline price $2.95 $2.95 $2.727 per unit The headline price will be • The In
Slide 14: Market overview
Market overview 2 Eden Park Drive, North Ryde, NSW
Slide 15: Market overview
Market overview Positive leasing activity leading to rising rents 12 Month • Sydney and Melbourne continue to Vacancy Vacancy 12 Month 12 Month Prime experience solid net absorption and Net Gross Market Dec Jun Change in Absorption Effective falling vacancy rates, generating 2018 2018 Occupancy (sqm
Slide 16: Market overview
Market overview ‘Unprecedented infrastructure programs, improved amenity, limited options, cost advantages and decentralisation’ …… the case for metropolitan office Metro vs CBD $700 Prime gross effective rent – discount to CBD • High office investment demand causing buyers to look $600 beyond tradi
Slide 17: Summary and outlook
Summary and outlook 64 Northbourne Ave, Canberra, ACT
Slide 18: Outlook
Outlook AOF remains well positioned to deliver on its objectives Guidance • FY19 FFO guidance of 17.2 – 17.4 cpu1 • FY19 distribution guidance of 15.8 cpu1 Immediate focus • Address current vacancy and pending lease expiry risk • Where possible, take advantage of improving leasing conditions to grow
Slide 19: Appendices
Appendices 241 Adelaide St, Brisbane, QLD
Slide 20: Income statement
Income statement 1H FY19 1H FY18 Change 6 months to 31 December 2018 ($’000) ($’000) ($’000) Income statement Rental income 30,259 24,882 5,377 Property expenses (9,582) (8,162) (1,420) Interest income 15 16 (1) Net (losses)/gains on financial instruments held at fair (1,151) (317) (834) value Net f
Slide 21: Reconciliation of statutory profit to Property Council of Australia FFO
Reconciliation of statutory profit to Property Council of Australia FFO 1H FY19 1H FY18 Change 6 months to 31 December 2018 ($’000) ($’000) ($’000) Statutory Net Profit 13,094 26,269 (13,175) Adjusted for: Straight lining of rental income and amortisation of leasing (67) 1,368 (1,435) commissions an
Slide 22: Balance sheet
Balance sheet 31 Dec 2018 30 June 2018 Change ($’000) ($’000) ($’000) Assets Cash and cash equivalents 6,215 6,177 38 Receivables 1,877 820 1,057 Financial assets held at fair value 0 0 0 Other assets 446 586 (140) Investment properties 640,987 635,550 5,437 Total Assets 649,525 643,133 6,392 Liabil
Slide 23: Capital management
Capital management Debt facility expiry profile $100 m $80 m $60 m $40 m $20 m $0 m Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Interest rate hedging & average hedged interest rate $160 m 4.00% $120 m 3.00% $80 m 2.00% $40 m 1.00% $0 m 0.00% Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-
Slide 24: Key portfolio metrics
Key portfolio metrics As at 31 December 2018 Geographic diversification3 Key portfolio metrics 64 Northbourne Ave Number of properties 9 468 St Kilda 4% NSW Road 10 Valentine Occupancy1 95.1% 11% Avenue 18% Portfolio Value $640.99m QLD Weighted Average Capitalisation Rate 6.52% 30 Pirie Street 5 Ede
Slide 25: Investment portfolio
Investment portfolio As at 31 December 2018 Book NLA Book value WALE1 Occupancy Property State Cap rate value (sqm) per sqm (years) (by NLA) Single or 30 Pirie St, Adelaide SA $121.50m 7.50% 24,781 $4,903 4.2 93.8% Dominant Tenant 10 Valentine Ave, NSW $115.50m 6.25% 15,995 $7,221 3.3 100.0% Assets
Slide 26: Sustainability
Sustainability Daily Consumption Performance Energy Increase 15% • Indicates energy savings 10% compared to ‘Baseline’ 5% • ‘Baseline’ is the electricity consumption 0% for 2014 adjusted for Jul-16 Jul-17 Jul-18 weather patterns and Jun-16 Nov-16 Dec-16 Jan-17 Jun-17 Nov-17 Dec-17 Jan-18 Jun-18 Nov-
Slide 27: Australian Unity Property
Australian Unity Property Investment and property manager for AOF Managing Deep expertise Master $3.3 billion* Managing 95 Diversified with 55+ developer FUM offering specialist staff properties in For the $1.1 billion Plus a $1.7 billion Australia Of listed and Plus access to the Herston Quarter de
Slide 28: Health | Wealth | Living
Australian 7 Health | Wealth | Living
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