Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — H1 2017 Earnings Presentation
29 slides from Cedar Woods Properties's earnings presentation, Feb 22, 2017
Slide 1: 1H2017 Financial Results
Cedar Woods Properties Limited 1H2017 Financial Results 22 February 2017
Slide 2: Cedar Woods' strategy
Cedar Woods Presentation | 2 Cedar Woods’ strategy — Established in 4 states To grow and develop our — Good geographic spread, well located projects national project portfolio, Geography diversified by: — First apartments at Williams Landing geography sold out product type — Introducing medium d
Slide 3: On track for record year
Cedar Woods Presentation | 3 On track for record year Change 1H17 1H16 FY17 Guidance (1H17 vs 1H16) Net Profit after tax $3.0m $18.1m (83.4)% $45m Earnings per share 3.8 cents 23.0 cents (83.5)% 57.0 cents Dividends per share 12.0 cents 12.0 cents - First half consistent with expectation 1H17 ch
Slide 4: Strategy delivering strong performance
Cedar Woods Presentation | 4 Strategy delivering strong performance NPAT $m Dividends cents 45 40 40 6 consecutive years of 35 NPAT growth 35 30 30 25 Forecast FY17 NPAT 25 approximately $45 million 20 20 15 1H 15 Strong and consistent 10 dividend payments 10 5 5 FY12-16 ROE average: 0 0 16%
Slide 5: Full year focus and consistent dividend policy
Cedar Woods Presentation | 5 Full year focus and consistent dividend policy NPAT $m Dividends cents Dividend policy – consistent 45.0 40 payout ratio of 50% of full year NPAT 40.0 35 35.0 Cedar Woods has a history of 30 uneven half year financial 30.0 25 results due to the timing of 25.0 project
Slide 6: Balance sheet strength and access to funding
Cedar Woods Presentation | 6 Balance sheet strength and access to funding Gearing (%) 31 Dec 30 June 100 2016 2016 $m $m 80 Total assets (book value) 484.3 452.7 Net bank debt 89.9 50.3 60 Target Net assets (equity) 297.3 307.2 Gearing 40 25 – 75% Net bank debt to equity 30.2% 16.4% Finance faciliti
Slide 7: Balanced national portfolio
Cedar Woods Presentation | 7 Balanced national portfolio 4 states 24 projects 10,000 lots/ FY17 DEVELOPMENT SPEND townhouses/ DISTRIBUTION (%) QUEENSLAND apartments 25% Ellendale Wooloowin 30% 14% WESTERN AUSTRALIA Major Projects VICTORIA Ariella Williams Landing Bushmead Oxford Apartments Harrisdal
Slide 8: Diversified portfolio
Cedar Woods Presentation | 8 Diversified portfolio State Price Point Product Presales revenue Current price list Presales – # lots/apartments $894K QLD Apartments 20% 15% $599K $515K 51% VIC $455K Housing 28% 29% $289K WA 57% $139K Land Sales LAND APARTMENTS TOWNHOUSES Pre sales across three state
Slide 9: Positioned for continued growth
Cedar Woods Presentation | 9 Positioned for continued growth New projects contributing to revenue in coming years Project Life Project State Status (Years) Ellendale (1) QLD 10 Stage 1 approaching completion Wooloowin QLD 6 Planning underway Jackson Green VIC 5 Townhouse releases sold out St. A VIC
Slide 10: VIC portfolio update
Cedar Woods Presentation | 10 VIC portfolio update 40KM Williams Landing - Heads of Agreement for Target office, Oxford 20KM CARLINGFORD apartments released, shopping ST. A 10KM centre expansion completed BANBURY VILLAGE 5KM MELBOURNE Jackson Green - strong townhouse WILLIAMS CBD LANDING pre-sal
Slide 11: Jackson Green
Cedar Woods Presentation | 11 Before After GREEN January 2014 December 2016 Masterplan includes 151 townhouses, JACKSON approximately 200 apartments January 2017 Stage 2-5 civil works due for completion in March 2017 Stage 1 townhouse construction commenced January 2017 Sales to the end of J
Slide 12: Newton Apartments
Cedar Woods Presentation | 12 A PA R T M E N T S January 2017 October 2016 57 apartments over 4 levels CAD image 1 bedroom, 2+1 bed/bathroom and 2+2 bed/bathroom typologies NEWTON 100% sold Construction commenced April 2016 Settlement anticipated May 2017
Slide 13: WA portfolio update
Cedar Woods Presentation | 13 WA portfolio update 40KM Successful launch of Bushmead, 20KM ARIELLA PRIVATE approaching stage 1 completion ESTATE 10KM BUSHMEAD Ariella sales momentum 5KM PERTH continuing, stage 3 commenced CBD HARRISDALE GREEN ahead of schedule PIARA CENTRAL Construction of new
Slide 14: Bushmead before and after
Cedar Woods Presentation | 14 Before After BUSHMEAD After Before January 2014 December 2016 February 2017 October 2013 October 2013 January 2017 November 20162017 January
Slide 15: QLD portfolio update
Cedar Woods Presentation | 15 QLD portfolio update ELLENDALE Moreton Bay Stage 1 has 142 lots with 117 sales CARSELDINE 480 lots already approved on 67 ha ELLENDALE on the 227 ha site Rezoning of the balance 160 ha WOOLOOWIN underway and anticipated to be BRISBANE completed in C2017 CBD WOOLOO
Slide 16: Ellendale
Cedar Woods Presentation | 16 Before After ELLENDALE May 2015 13km west of Brisbane CBD February 2017 Stage 1 nearing completion Stage 2 construction commenced in December 2016 Builders’ display village construction to commence shortly December 2016 – Stage 1
Slide 17: SA portfolio update
Cedar Woods Presentation | 17 SA portfolio update Glenside rezoning approved MAWSON LAKES December 2016 Port Adelaide due diligence PORT ADELAIDE successfully completed Both sites have strong locational ADELAIDE attributes and cater to different CBD GLENSIDE markets St Vincent Gulf GLENELG 5KM
Slide 18: Market conditions
Cedar Woods Presentation | 18 Market conditions Historically low interest rates and continued population growth supporting solid state fundamentals. Demographics Population GDP growth Employment driving strong growth robust2 stable3 capital city continuing 1 growth4 – Solid sales volumes, price grow
Slide 19: Cedar Woods operating in affordable markets
Cedar Woods Presentation | 19 Cedar Woods operating in affordable markets Housing affordability – price to income ratio Rapid growth in Sydney and to a lesser extent Melbourne has impacted housing affordability Brisbane, Perth and Adelaide remain affordable markets Three months price growth to
Slide 20: Diversification strategy underpinning results
Cedar Woods Presentation | 20 Diversification strategy underpinning results Positive outlook underpinned by strong pre-sales Grow and of $274 million, up 56% on last year develop our national project portfolio… Development program is on track, backed by continued strong pre-sales and disciplined
Slide 21: Office contacts and disclaimer
Perth Office Melbourne Office Ground Floor, 50 Colin Street Level 1, 476 St Kilda Road West Perth WA 6005 Melbourne VIC 3004 T: (08) 9480 1500 T: (03) 9820 1777 E: email@cedarwoods.com.au E: melbourne@cedarwoods.com.au Brisbane Office Adelaide Office Level 6, 12 Creek Street Level 21, 25 Grenfell St
Slide 22: Appendices
Cedar Woods Presentation | 22 Appendices
Slide 23: Company highlights
Cedar Woods Presentation | 23 Company highlights ASX 300 company with a proven track record of consistent earnings growth Attractive, fully franked yield Attractive valuation metrics Balanced, national portfolio, diversified by product type, price point and geography Strong balance sheet a
Slide 24: Cedar Woods' charter
Cedar Woods Presentation | 24 Cedar Woods’ charter “To create long term value for our shareholders through the PURPOSE disciplined acquisition, development and marketing of properties that meet the needs of our customers.” “To manage our portfolio with the aim of delivering consistent OBJECTIVE annu
Slide 25: Profit & loss statement
Cedar Woods Presentation | 25 Profit & loss statement CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2016
Slide 26: Balance sheet
Cedar Woods Presentation | 26 Balance sheet
Slide 27: Cash flow
Cedar Woods Presentation | 27 Cash flow
Slide 28: Project pipeline – as at 1 July 2016
Cedar Woods Presentation | 28 Project pipeline – as at 1 July 2016
Slide 29: Office contacts and disclaimer
Perth Office Melbourne Office Ground Floor, 50 Colin Street Level 1, 476 St Kilda Road West Perth WA 6005 Melbourne VIC 3004 T: (08) 9480 1500 T: (03) 9820 1777 E: email@cedarwoods.com.au E: melbourne@cedarwoods.com.au Brisbane Office Adelaide Office Level 6, 12 Creek Street Level 21, 25 Grenfell St
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