Cromwell Property Group · ASX:CMW
Cromwell Property — Shareholder Meeting (November 2017)
35 slides from Cromwell Property's shareholder meeting presentation, Nov 29, 2017
Slide 1: FY17 AGM Presentation
For personal use only FY17 AGM PRESENTATION 29 November 2017 CMW – FY17 Annual General Meeting 1
Slide 2: Important Information & Disclaimer
Important Information & Disclaimer This presentation including its appendices appropriate for their particular jurisdiction. (PSF), Cromwell Phoenix Core Listed Property Fund (Presentation) is dated 29 November 2017 and has ARSN 604 286 071 (PCF), Cromwell Phoenix For personal use only Cromwell Prop
Slide 3: Directors
Directors For personal use only CMW – FY17 Annual General Meeting 3
Slide 4: Meeting Agenda
Meeting Agenda For personal use only • Open • Chairman’s Address • CEO’s Address • Formal Voting CMW – FY17 Annual General Meeting 4
Slide 5: Chairman's Address
For personal use only SECTION 2 Chairman’s Address
Slide 6: Cromwell Property Group Strategy
Cromwell Property Group Strategy For personal use only 80:20 Operating Profit Split Direct Property Investment Funds Management Maintain Repurpose, Manage property Continually in Focus on core, Provide investors Provide investors defensive core reposition or internally to market looking for core plu
Slide 7: Cromwell Property Group Strategy
Cromwell Property Group Strategy Providing stable, secure and increasing distributions per security over For personal use only the property cycle. CMW – FY17 Annual General Meeting 7
Slide 8: Cromwell Property Group Capital Sources Strategy
Cromwell Property Group Capital Sources Strategy For personal use only We look to dial up different sources of capital at different points in the property cycle CMW – FY17 Annual General Meeting 8
Slide 9: CEO's Address
For personal use only SECTION 3 CEO’s Address
Slide 10: Cromwell Property Group FY17 Headline Results
Cromwell Property Group FY17 Headline Results FY17 Financial Results Earnings and Distributions History For personal use only 9.5 § Statutory profit of $277.5 million ($329.6 million in FY16) 9.0 § FY17 operating profit of $152.2 8.5 million ($164.5 million in FY16) 8.0 § FY17 operating profit per 7
Slide 11: Property Portfolio - Strategic Outcomes
Property Portfolio - Strategic Outcomes § Reinvestment has led to transition of the portfolio to a more defensive focus. For personal use only § Core portfolio now has very long WALE as well as low capex and incentive requirements. § Reinvestment into Core+ portfolio assets has led to a high level o
Slide 12: Property Portfolio – Valuations Continue To Rise
Property Portfolio – Valuations Continue To Rise § Property segments operating profit was $124.7 million, comprising 82% of the total FY17 amount. For personal use only § Fair value increase in held portfolio of $108.7 million net of property improvements, lease costs and incentives. § Weighted Aver
Slide 13: Property Portfolio – Tenant Profile Remains Robust
Property Portfolio – Tenant Profile Remains Robust Geographic Diversification1 Tenant Classification1 2 For personal use only 9.4% ACT 19.7% 21.7% Government Authority NSW 23.0% 45.5% Listed Company/Subsidary QLD Private Company 32.8% 47.9% VIC % of Gross § Tenant profile remains consistent and of h
Slide 14: Property Portfolio – Lease Expiry Profile Improves
Property Portfolio – Lease Expiry Profile Improves For personal use only 60% Lease Expiry Profile % Gross Income § Favourable Future Lease Expiry Profile 48.9% 50% § Occupancy of 92.1% (89.7% FY16) 40% § WALE of 7.2 years (6.48 years FY16) 30% 20% § Average fixed review over next 3 years 12.9% 9.7%
Slide 15: Property Portfolio – Bundall Corporate Centre Realisation
Property Portfolio – Bundall Corporate Centre Realisation Bundall Corporate Centre sold in June for $89 million For personal use only Property Data Active Management Property Type Office • Achieved improvement in property appeal through better onsite management 1 Corporate Court, Address Bundall QLD
Slide 16: Property Portfolio - Health & Forestry House Realisation
Property Portfolio - Health & Forestry House Realisation Agreement to sell asset for $69 million in November 2017. For personal use only Property Data Active Management Results Property Type Office • Acquired with a relatively short weighted § Cromwell has entered into an agreement to sell average l
Slide 17: Funds Management – AUM Steady
Funds Management – AUM Steady For personal use only § Operating Profit of $27.7 million (FY16 $29.2 million). Split; Change in AUM ($bn)1 § Wholesale Funds $16.9 million (FY16 $19.0 million). § Retail Funds $8.2 million (FY16 $10.0 million). § Internal Funds $2.6 million (FY16 $0.2 million). § Tradi
Slide 18: Wholesale Funds – Strong Transactional Activity
Wholesale Funds – Strong Transactional Activity § Some dislocation seen in first half in UK post Brexit vote. Continental For personal use only Europe remained strong throughout. § Acquired Artemis portfolio with Goldman Sachs. A pan-European portfolio of 33 assets, 360,000 sqm that are currently be
Slide 19: Retail Funds – Solid Underlying Result
Retail Funds – Solid Underlying Result § Operating profit of $8.2 million (FY16 $10.0 million). For personal use only § Total AUM of $1.8 billion (FY16 $1.7 million). Variance in operating profit driven by reduction in performance fees compared to prior comparison period. § Cromwell Riverpark Trust
Slide 20: Capital Management – Managing To Opportunity
Capital Management – Managing To Opportunity § NTA has increased by $0.08 to $0.89 (FY16 $0.81). FY17 FY16 For personal use only ($M) ($m) Assets § Current Cash and Cash Equivalents of $86.9 million. Cash and Cash Equivalents 86.9 95.6 Investment Property 2,357.8 2,274.0 § Investments at Fair Value
Slide 21: Outlook - Australian Economic Growth Moderate
Outlook - Australian Economic Growth Moderate NAB Business Conditions For personal use only § Consumer confidence remains subdued, household Finance, Business & Property Services Employment Index Sqm consumption below trend, inflation under target. Any residential construction downturn will have a n
Slide 22: Outlook - European Economic Recovery Continues
Outlook - European Economic Recovery Continues EU GPD Growth Rate Picks-up § Eurozone growth continues to pick-up with unemployment at For personal use only the lowest rate since 2009, consumption, investment and Industrial Production Growth Rates all up. § Real Eurozone GDP growth has shown positiv
Slide 23: CEREIT – IPO November 2017
CEREIT – IPO 30 November 2017 For personal use only CMW – FY17 Annual General Meeting 23
Slide 24: FY18 Earnings and Distributions Guidance Unchanged
FY18 Earnings and Distributions Guidance Unchanged Operating Earnings Guidance: 8.25 cps4 For further information please contact: For personal use only Distributions Guidance: 8.34 cps4 Paul Weightman Cromwell Property Group FY17 Snapshot1 CEO / Managing Director Market Cap: $1.8 bn2 paul.weightman@
Slide 25: Formal Voting
For personal use only SECTION 4 Formal Voting
Slide 26: Voting Cards
Voting Cards For personal use only Yellow card Blue card White card Voting card Non-voting attendee card Visitor card CMW – FY17 Annual General Meeting 26
Slide 27: Items of Business
For personal use only SECTION 5 Items of Business
Slide 28: Consideration of the Financial, Directors' and Auditor's Reports
Item 1 For personal use only Consideration of the Financial, Directors’ and Auditor’s Reports This is not the subject of a formal resolution and no proxies apply CMW – FY17 Annual General Meeting 28
Slide 29: Re-election of Mr Geoffrey Levy as a Director
Item 2 For personal use only Re-election of Mr Geoffrey Levy as a Director “That Mr Geoffrey Levy, who retires by rotation in accordance with the constitution of Cromwell Corporation Limited and offers himself for re-election, is re-elected as a director of Cromwell Corporation Limited.” Number % of
Slide 30: Re-election of Mr Andrew Konig as a Director
Item 3 For personal use only Re-election of Mr Andrew Konig as a Director “That Mr Andrew Konig, who retires by rotation in accordance with the constitution of Cromwell Corporation Limited and offers himself for re-election, is re-elected as a director of Cromwell Corporation Limited.” Number % of p
Slide 31: Re-election of Ms Jane Tongs as a Director
Item 4 For personal use only Re-election of Ms Jane Tongs as a Director “That Ms Jane Tongs, who retires by rotation in accordance with the constitution of Cromwell Corporation Limited and offers herself for re-election, is re-elected as a director of Cromwell Corporation Limited.” Number % of proxi
Slide 32: Election of Mr Leon Blitz as a Director
Item 5 For personal use only Election of Mr Leon Blitz as a Director “That Mr Leon Blitz, who is eligible and having offered himself for election, is elected as a director of Cromwell Corporation Limited.” Number % of proxies received For 1,013,367,583 98.97% Open 7,930,613 0.77% Against 2,632,437 0
Slide 33: Remuneration Report
Item 6 For personal use only Remuneration Report “That the remuneration report of Cromwell Corporation Limited for the year ended 30 June 2017 is adopted.” Number % of proxies received For 692,190,403 68.16% Open 9,356,414 0.92% Against 314,052,388 30.92% Abstain 4,442,560 CMW – FY17 Annual General
Slide 34: Questions, Comments
For personal use only SECTION 6 Questions, Comments
Slide 35: For personal use only
For personal use only CMW – FY17 Annual General Meeting 35
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