Abacus Group · ASX:ABG
Abacus — Abacus Property Group — HY17 Earnings Presentation
24 slides from Abacus's earnings presentation, Feb 17, 2017
Slide 1: HY17 Results Presentation
Artist’s impression of Ashfield Central residential development, Sydney NSW ‘It’s all about the property’ HY17 Results Presentation Abacus Property Group – HY17 Results Presentation 17 February 2017
Slide 2: HY17 financial summary
HY17 financial summary 14 Martin Place, Sydney NSW Statutory profit Underlying profit Net tangible asset $191.7 million $69.5 million $2.94 per security Up 2.5x Up 21.7% Up 10.5% 710 Collins Street, Melbourne VIC Underlying EPS Underlying DPS Payout ratio 12.2 cps 8.75 cps 71.5% World Trade Centre,
Slide 3: HY17 highlights
HY17 highlights We have remained committed to our core plus value add strategy We continued to be active during the period Acquired 2 commercial assets totalling $90 million in value Sold or exchanged contracts to sell 4 commercial assets of over $150 million Spice apartments, Brisbane QLD Add
Slide 4: Financial results and capital management
Spice residential development, Brisbane QLD Financial results and capital management Abacus Property Group – HY17 Results Presentation 17 February 2017
Slide 5: Diversified business delivers results
Diversified business delivers results Key financial metrics Dec 16 Dec 15 Underlying Profit $69.5 million Consolidated Group1 AIFRS statutory $191.7m $75.5m 2.5x Strong results across the commercial property and self-storage profit sectors offset a slight reduction in development revenue on the prio
Slide 6: 10.5% growth in net tangible assets per security
10.5% growth in net tangible assets per security Abacus has a strong balance sheet Balance sheet metrics Dec 16 Jun 16 NTA per security $2.94 $2.66 Balance sheet gearing reduced to 22.7% on the back of realisations NTA per security less February across our investment portfolio and residential develo
Slide 7: Investment portfolio overview
Investment portfolio overview Abacus Property Group – HY17 Results Presentation 17 February 2017 World Trade Centre, Melbourne VIC
Slide 8: Investment portfolio of $1.7 billion
It’s all about the property Investment portfolio of $1.7 billion Key portfolio metrics Dec 16 Jun 16 Investment portfolio remixing continues with increases across the self-storage, office and retail portfolios Investment portfolio value1 ($m) 1,688 1,568 Acquired 4 assets for the self-storage port
Slide 9: Office and Industrial portfolio
It’s all about the property Office and Industrial portfolio $551m 33 Queen Street and 199 George Street, Brisbane QLD $29m Office portfolio value 7.0% Office: portfolio value Office portfolio uplift5 WACR1,3 88.6% 3.8 yrs Office: portfolio occupancy1 (0.1)% Office portfolio Office: rental WALE1,4 gr
Slide 10: 324 Queen Street - Brisbane QLD
It’s all about the property 324 Queen Street - Brisbane QLD Abacus acquired a 50% interest in 324 Queen Street, Brisbane in December Key metrics 2016 for $66 million on an initial yield of circa 7.1% Investec acquired the remaining 50% as tenants in common Rate per square metre at acquisition $6,6
Slide 11: Delivering on strategy
It’s all about the property Delivering on strategy Westpac House, Adelaide SA Acquired 50% for $51 million in October 2004 High quality building, considered one of the best office assets in it’s precinct - underwent strong tenant repositioning Had recently renewed Westpac 3,300m2 lease and sig
Slide 12: Retail portfolio
It’s all about the property Retail portfolio $374m Lutwyche City Shopping Centre, Brisbane QLD $4m Portfolio value 6.6% Portfolio value uplift5 Portfolio WACR1,3 89.4% Portfolio occupancy1 4.5% 4.7 yrs Rental growth1,2 Portfolio WALE1,4 1. Excludes development assets 2. Like for like rent growth Str
Slide 13: Retail portfolio updates
It’s all about the property Retail portfolio updates Retail portfolio development pipeline robust with multiple projects Ashfield Mall has completed its new alfresco dining redevelopment at the forecourt including new centre signage to Liverpool Road Completed redevelopment delivered a 14.5% yield
Slide 14: Self-storage: buy and hold strategy
It’s all about the property Self-storage: buy and hold strategy Self-storage portfolio: $613 million Key metrics AUS NZ Dec 16 Jun 16 19.5% increase in underlying EBITDA to $19.0 million in HY17 driven Portfolio value ($m) 489.5 123.9 613.4 574.4 by strong trading and recent acquisitions No. of self
Slide 15: Self-storage portfolio updates
It’s all about the property Self-storage portfolio updates Portfolio consists of: Portfolio value compound growth of 13.9% pa 70 53 established self-storage facilities and 575 Portfolio size ($m) Portfolio size (no. of assets) 6 newly converted self-storage facilities with further 65 expansion p
Slide 16: Property ventures overview
Property ventures overview Abacus Property Group – HY17 Results Presentation 17 February 2017 Artist’s impression of One A residential development, Erskineville, Sydney NSW
Slide 17: Property ventures – delivering on strategy
It’s all about the property Property ventures – delivering on strategy $24.5 million underlying EBITDA contribution Key metrics Dec 16 Jun 16 $6 million reduction due to a lower average interest rate Residential exposure 96.2% 96.2% across the portfolio and a reduction of fee income from new inves
Slide 18: Residential pipeline - developments
It’s all about the property Residential pipeline - developments Doncaster, Melbourne VIC $97 million of invested capital across 8 residential development projects currently under construction or planning for c1,600 units Completed and committed projects of 1,371 units are 96% sold down 2 completed
Slide 19: Residential pipeline – land approvals
It’s all about the property Residential pipeline – land approvals $281 million of invested capital across 11 residential land projects actively progressing through the local and state government approvals process 100% exposure to the Sydney metropolitan market Fundamentals remain solid with demand
Slide 20: Funds management overview
Funds management overview Abacus Property Group – HY17 Results Presentation 17 February 2017 Westpac House, Adelaide SA 50% owned by ADIF II
Slide 21: Funds management update
It’s all about the property Funds management update $5.8 million underlying EBITDA contribution for the six month period $170 million of fund investments 16% increase due to NTA improvements within ADIF II and AHF following investment property revaluation increases of $19 million Two out of th
Slide 22: Summary
Summary Abacus Property Group – HY17 Results Presentation 17 February 2017 710 Collins Street, Melbourne VIC
Slide 23: Summary – strong value proposition
Summary – strong value proposition Artist’s impression of residential development Hawthorn, VIC We are pleased to deliver another strong underlying profit result Securityholder distributions are secure and predictable Payout ratio of 72% of underlying profit The business outlook remains positive
Slide 24: Disclaimer
Disclaimer The information provided in this document is general, and may not be suitable for the specific purposes of any user of this document. It is not financial advice or a recommendation to acquire Abacus Property Group securities (ASX: ABP). Abacus Property Group believes that the information