Desane Group Holdings Ltd · ASX:DGH
Desane — Shareholder Meeting (November 2011)
22 slides from Desane's shareholder meeting presentation, Nov 4, 2011
Slide 1: Annual General Meeting
For personal use only ANNUAL GENERAL MEETING
Slide 2: 2011 Chairman's Highlights
2011 Chairman’s Highlights For personal use only • Global Financial Markets continue to remain volatile • Equities based in commercial and industrial properties are revealing a market stability separate from more volatile classes of equities such as retail and manufacturing • Continuing shortage of
Slide 3: Shareholder Resolutions
Shareholder Resolutions For personal use only TO LAY BEFORE THE 2011 ANNUAL GENERAL MEETING: 1.To adopt the financial and other reports 2.To declare a final dividend of one cent per share (unfranked) 3.To re-elect John Sheehan as a Director 4.To approve directors’ remuneration (non-binding resolutio
Slide 4: Annual General Meeting Presentation & Company Highlights
Annual General Meeting For personal use only Presentation & Company Highlights 4th November 2011 Mr Phil Montrone Managing Director & CEO
Slide 5: Key Points from FY 2011 Result
Key Points from FY 2011 Result • Rental income has been maintained in a very • The Group’s net tangible assets (NTA) is 79 cents per share For personal use only difficult rental market at $2.2m • All properties owned and managed by the Group are 100% leased • All Group borrowings have been renewed o
Slide 6: Desane Group Property Overview
For personal use only Desane Group Property Overview
Slide 7: Property Portfolio Overview
Property Portfolio Overview For personal use only Property FY11 Actual FY10 Actual ! 13 Sirius Road ! $! 3.8 m ! $! 4.4 m 7-9 Orion Road ! $! 9.8 m ! $! 8.8 m 68-72 Lilyfield Road Multimedia Centre ! $! 10.5 m ! $! 10.2 m 318-332 Burns Bay Road ! $! 9.3 m ! $! 10.1 m 47-51 Lilyfield Road Commercial
Slide 8: Property Portfolio Overview
Property Portfolio Overview For personal use only • Property portfolio consolidated with approximately 37,300m2 in lettable area • All properties remain underpinned by leases to high quality tenants • Operating revenues remain steady at $3m • Property management & service revenue up 46% to $228k • N
Slide 9: Property Portfolio Overview: 318-332 Burns Bay Road, Lane Cove
Property Portfolio Overview 318-332 Burns Bay Road, Lane Cove For personal use only Expression of Interest (EOI) campaign undertaken in March 2011 The EOI campaign highlighted the need to proceed to obtain DA approval for up to 280 residential apartment units This 12,000m2 waterfront property
Slide 10: Proposed Residential Block Plan
Property Portfolio Overview 318-332 Burns Bay Road, Lane Cove For personal use only Proposed Residential Block Plan
Slide 11: Sydney Metropolitan dwelling approvals required vs actual
Property Portfolio Overview Sydney Metropolitan dwelling approvals required vs actual For personal use only Source: Australia Bureau of Statistics & CBRE (July 2011). Based on average household of 2.6
Slide 12: Industrial Property Market Overview
For personal use only Industrial Property Market Overview
Slide 13: Industrial Property Sales
Industrial Property Sales Sales below $20 million have stabilised at a low level For personal use only Source: CBRE (July 2011).
Slide 14: Who's been buying?
Who’s been buying? Foreign investors, REITs and private investors are very active For personal use only Source: CBRE (July 2011). For all commercial property transactions above $5.0 million
Slide 15: Yields Table
Yields Table Income Yields are high by global standards as properties are revalued For personal use only Source: CBRE (July 2011)
Slide 16: Prime face rents
Prime face rents Starting to rise with limited supply. A slowing construction cycle will assist in vacancy falls in 2012/13 For personal use only Source: CBRE (July 2011)
Slide 17: Incentives & Vacancies
Incentives & Vacancies Industrial vacancies are on the way down Incentives are falling with limited supply and a rise in demand for warehouse & distribution centres For personal use only Sydney Industrial Melbourne Industrial Indicative Total Indicative Total As at Incentives vacancy Incentives vaca
Slide 18: Desane Group Share Price
For personal use only Desane Group Share Price
Slide 19: DGH Share Price v NTA
DGH Share Price v NTA For personal use only DGH share price – significant upside based on trading at 50% below NTA Simply put you can purchase $0.79 of value for $0.39 (trading price as at 12th October 2011) Australian Real Estate Investment Trust (A-REIT) average is 15% below NTA (SMH October
Slide 20: DGH v ASX Listed Australian Property Trusts (5 Yr Share Price)
DGH v ASX Listed Australian Property Trust’s (5 Yr Share Price) For personal use only Key DGH Share Price 2007–2011 ASX Listed Property Trust’s 2007–2011 Source: CommSec (July 2011)
Slide 21: In Conclusion
In Conclusion: For personal use only The DGH share price is trading well below its net tangible asset (NTA) price The discounted share price can become an attractive alternative to other forms of investment The Sydney industrial property market presents some challenges but also many opportunit
Slide 22: General Discussion Q&A
General Discussion For personal use only Q&A “Desane will continue to operate as premium commercial and industrial property managers, creating consistent levels of earnings, asset growth and wealth for its shareholders.”
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