Slide 1: Abacus Property Group FY19 Results Presentation
Abacus Property Group FY19 Results Presentation 16 August 2019
Slide 2: FY19 metrics
FY19 metrics POST POST STATUTORY PLACEMENT TOTAL PLACEMENT PROFIT NET TANGIBLE ASSETS GEARING ASSETS $202.7m $3.38! $2.8b 15.2%2 down 16.8% on FY18 up 6.3% on FY18 up 3.9% on FY18 down 810 bps on FY18 FUNDS FROM DISTRIBUTION EN ROE OPERATIONS seouaity PER SECURITY (FFO) (DPS) 139.4m 129.2m 2 24.0% o
Slide 3: FY19 highlights
3 FY19 highlights Solid progress on transition of Abacus platform towards a strong asset backed, annuity style investment house. Focus on key sectors of Office and Self Storage * 8.4% growth in annual net property rental income to $114.8 million — 14.2% Commercial portfolio rental growth, driven by
Slide 4: Delivering in line with strategic priorities
Delivering in line with strategic priorities Fy Abacus continues to successfully execute on its stated strategy to pursue long term value enhancing investments and realise non-core assets investments Self Storage D = [S) i o = Cc () o ro] iw) > Ss = Oo £ D c 6 o =) 7) Zz > a Realise non-core assets
Slide 5: Balance sheet allocation — transition continuing
5 Balance sheet allocation — transition continuing Fi JUNE 2019 JUNE 2018 2 8 billion of 2 yf billion of | Total Assets! | Total Assets! $2.3 billion $334 million $2.1 billion $449 million Residential Residential £1) Office $1,078m A, Developments *384M C1 Office se7am A Developments *449m 4} Self S
Slide 6: Financial results
Financial results
Slide 7: Abacus Property Group key financial metrics
Abacus Property Group key financial metrics KEY FINANCIAL METRICS AIFRS statutory profit! $202.7m $243.7m Funds from operations (FFO) $129.2m $169.8m Underlying profit? $139.4m $183.3m Funds from operations per security 22.28C 29.39c Distributions per security 18.50c 18.00c Cashflow from operations
Slide 8: Balance sheet
Balance sheet NTA per security grew by 4.7% to $3.33 during FY19, driven by: * income growth KEY FINANCIAL POST * cap rate compression METRICS PLACEMENT Refinanced over $1 billion of banking facilities - extending debt : duration by 1.5yrs to 5.3yrs NTA per security $3.38 $3.33 $3.18 On 24 July 2019
Slide 9: Valuation
9 Valuation INVESTMENT PORTFOLIO! Office $1,078 $879 5.71% 6.23% Self Storage $908 $666 6.91% 7.45% Other $337 $585 5.95% 6.02% Total Abacus $2,323 $2,130 6.29% 6.58% investment portfolio 1. Includes assets acquired under our third party capital platform, inventory and PP&E 2. Including Liverpool Pl
Slide 10: Investment portfolio
Investment portfolio = Office = Self Storage = Super Convenience and other Retail
Slide 11: Office - CBD and select fringe
Office - CBD and select fringe Hl ABACUS INVESTMENT IN OFFICE i Occupancy LFL rental growth WALE WACR Average CBD? rent Average fringe? rent 1. Abacus ownership. Total asset value equates to $1.64 billion 2. Sydney and Melbourne 11 Abacus Property Group | FY19 Results Presentation
Slide 12: Capital transactions — Office, 201 Elizabeth Street, Sydney
12 Capital transactions — Office 201 Elizabeth Street-Sydney. NSW- Abacus Property Group | FY19 Results Presentation REPOSITIONING OPPORTUNITY Post balance date acquisition of a 32% interest in 201 Elizabeth Street, Sydney for $202 million’ 1 Purchased in a consortium managed by Charter Hall as tena
Slide 13: Self Storage — unique market investment
Self Storage — unique market investment Al ABACUS INVESTMENT IN SELF STORAGE $908m Passing yield! RevPAM growth! Occupancy! RevPAM! Average length of stay Average rent psm! (months) ” = 4. Across established portfolio (Owned for more than 36 months. Comprising 55 Storage King, Frenchs Forest NSW. ,
Slide 14: Self Storage — Abacus approach
Self Storage — Abacus approach Fy METROPOLITAN FOCUS 25% STRATEGIC INVESTMENT IN STORAGE KING Active acquirer and developer of self storage facilities since 2005 Multi-pronged growth opportunities — Organic - Storage King branded - Acquisition — non Storage King branded — Extension and development -
Slide 15: Metropolitan dominant portfolio
Metropolitan dominant portfolio Dominant metropolitan locations provide RevPAM resilience to housing market volatility Portfolio composition = 81%! of the Self Storage portfolio (by number) is within metropolitan Auckland, Brisbane, Canberra, Melbourne and Sydney FY19 acquisitions = 63% of the acqui
Slide 16: Self Storage — acquisitions and pipeline
Self Storage — acquisitions and pipeline Following strategic investment into operating platform and focus into key sectors GROWTH MOMENTUM FY19 capital deployment — multi-pronged growth approach with c.$180 million of acquisitions settled including development spend and acquisition of Storage King p
Slide 17: Retail — Super Convenience and other
17 Retail — Super Convenience and other a | 7 A = =i Ashfield Mall, Ashfield NSW Abacus Property Group | FY19 Results Presentation Total portfolio value? Occupancy WALE WACR Ashfield, Sydney 205. 24,922 Coles NSW Woolworths Aldi Kmart Lutwyche, 130 18,556 Coles Brisbane QLD Woolworths* Aldi 1. Abacu
Slide 18: Non-core realisations
Non-core realisations Group remains cautious as macro factors continue to negatively impact on market conditions Residential realisations * Development projects — business in wind up — Disposal of interest in four development projects for $31 million circa book value = Land and mortgages — equity ex
Slide 19: Sustainability
Sustainability Sustainability is Actively eee the becoming exploring mueess ee Releigeshuk sri opportunities and canis WA we do managing risks CHEWING} returns Business platform and governance refresh = Abacus Board refresh progressed with the appointment of two new directors following retirement of
Slide 20: Summary & outlook
Summary & outlook
Slide 21: Outlook
Outlook Abacus’ transition to a strong asset backed, annuity style business model continues = Execution of our stated strategic objectives: — Increasing our investment in longer dated core plus and develop to core Office assets — Increasing our investment in Self Storage * Capital allocation remains
Slide 22: Important information
Important information The inform: and may not be suita document. It is not fin 1s Property Group securities (ASX: ABP). Ab: [p believes that the information in this document is ntations regarding its suitability for any . Users of this document should obtain independent nal ad\ re relying on this do
Slide 23: FY19 Data Pack
Abacus Property Group FY19 Data Pack PROPERTY
Slide 24: Contents
Contents Financial Performance 25-30 Investment Portfolio 31-36 Developments 37 Glossary 38 Important information 39 24 Abacus Property Group | FY19 Results Presentation Data Pack
Slide 25: Segment balance sheet
Segment balance sheet PROPERTY PROPERTY ABACUS BALANCE SHEET INVESTMENT DEVELOPMENT ($m) ($m) Commercial investment properties 1,221.0 1,221.0 1,274.0 Self Storage investment properties 841.5 841.5 662.0 Fee aauly accounted and other investments, 217.6 9.3 475 274.4 195.4 Loans 42.8 272.4 315.2 385.
Slide 26: Segment earnings
Segment earnings COMMERCIAL SELF STORAGE DEVELOPMENT FY Rentalincome 97.3 76.5 173.8 163.7 Finance income! 42.2 42.2 47.5 Fee income? 8.4 8.4 79 Share of profit from equity accounted investments® * 5.5 0.9 7.0 13.4 69.1 Sale of inventory 36.7 36.7 63.8 Interest and Other income. 3.6 1.4 14.9 20.3 14
Slide 27: Net tangible asset reconciliation
Net tangible asset reconciliation 4 POST PLACEMENT FY19 FY18 Consolidated Group net assets 2,210.4 1,965.4 1,916.7 Less Total external non-controlling interest (4.7) (4.7) (46.6) Total stapled securityholders’ interest in equity 2,205.7 1,960.7 1,870.1 Less Intangible assets and goodwill (32.4) (32.
Slide 28: Abacus cashflow analysis
Abacus cashflow analysis" ICASHFLOWS FROM Ot! Income receipts 258,082 Interest received 420 Distributions received anh Income tax paid (30,865) Borrowing costs paid (26,833) Operating payments (82,121) Payment for land acquisition (4,564) NET CASHFLOWS FROM OPERATING ACTIVITIES 114,230 Payments for
Slide 29: Debt facilities
Debt facilities CAPI MANAGEMENT METRICS POST PLACEMENT FY19 FY18 Total bank debt facilities $1,048m $1,048m $891m Total bank debt drawn $466m $711m $695m Term to maturity 5.3yrs 5.3yrs 3.8yrs % hedged of drawn debt! 76% 50% 42% % hedged of total debt facilities 34% 34% 33% Weighted average hedge mat
Slide 30: Debt maturity and hedging profile
($’m) Available bank facility 300 Drawn bank debt 14.4 200 211.7 100 215.6 176.8 150.0 150.0 100.0 11.0 0 18.3 HY20 FY20 HY21 FY21 HY22 FY22 HY23 FY23 HY24 FY24 HY25 FY25 HY26 (#039;m) Fixed Interest Rate Swaps & Collars 400 Weighted Average Fixed Rate 5.0% 4.0% 300 3.0% 200 2.0% 100 1.0% 0 0.0% Year 1
Slide 31: Investment portfolio metrics
Investment portfolio metrics Investment Portfolio by Sector KEY PORTFOLIO METRICS FY19 FY18 Self Storage 39% Investment portfolio value’ ($m) 2,323 2,130 Retail 4 10% Commercial portfolio' ($m) 1,415 1,464 Industrial and | | Other 4% Self Storage portfolio ($m) 908 666 Office 47% WACRI (9%) 6.29 6.5
Slide 32: Portfolio revaluations
Portfolio revaluations Revaluation process for Abacus resulted in a net increase in the investment properties values for FY19 of approximately 3.5% or $69.6 million Average cap rate across the Abacus commercial and self storage portfolios has decreased to 5.90% and 6.91% from 6.16% and 7.45% in June
Slide 33: Self Storage metrics
Self Storage metrics PERFORMANCE METRICS AUS NZ FY19 FY18 PERFORMANCE METRICS FY19 FY185 Total Assets 58 12 701 622 Storage revenue 68.6 64.5 NLA (sqm) 259,331 61,570 320,901 287,725 Other revenue 7.9 7.2 Occupancy 88.4 88.9 88.53 89.44 Total revenue 76.5 71.7 Rental Rate (psm) A$285 A$280 A$2833 A$
Slide 34: Self Storage compound growth
Self Storage compound growth Portfolio value compound growth of 16% pa since FY13 900 5 90 mm Portfolio size ($m-lhs) —Partfolio size (no. of assets-rhs) 800 - 80 700 + 70 600 - 60 50 500 | - lJ L L 300 [] : ll : : : : : : : : : : : 30 40 Jun-13 Dec-13 Jun-14.-Dec-14.— Jun-15.--Dec-15— Jun-16—-Dec-1
Slide 35: Self Storage indicative development pipeline
Self Storage indicative development pipeline The current development pipeline represents 10%+ growth on our existing Self Storage portfolio We will continue to identify additional development opportunities within our existing portfolio and strategically reinvest subject to market conditions Over 50,
Slide 36: Commercial portfolio metrics
Commercial ortfolio metrics PORTFOLIO METRICS OFFICE OTHER FY19 FY18 FY19 FY18 Portfolio ($m) 1,078 879 337 585 No. of assets 22 20 12 15 NLA (sqm)! 118,831 118,284 66,473 105,253 WACR (%) 5.71 6.23 5.95 6.02 Occupancy! (% by area) 91.8 86.9 92.1 96.2 Average rent psm! $495 $469 $295 $313 WALE! (yrs
Slide 37: Residential developments, land and mortgages
Residential develooments, land and mortgages INTEREST PROJECT TYPE EQUITY LOAN L RATE SECURITY RETURNS VALUE ENHANCEMENT, ENDURING PROJECTS RCL Portfolio NSW JV/Loan $44.6m $116.2m $160.8m 1st Mortgagee 50% profit share MEDIUM TERM REALISATION PROJECTS Lane Cove NSW Loan - $22.2m $22.2m 1st Mortgage
Slide 38: Glossary
Glossary DEFINITION DEFINITION AASB10. Australian Accounting Standard 10 HY Half year ABP Abacus Property Group IRR Internal rate of return AICD Australian Institute of Company Directors kw Kilo-watt AIFRS Australian International Financial Reporting LFL Like for like Standards ASX Australian Securi
Slide 39: Important information
Important information The inform: and may not be suita document. It is not fin 1s Property Group securities (ASX: ABP). Ab: [p believes that the information in this document is ntations regarding its suitability for any . Users of this document should obtain independent nal ad\ re relying on this do