Dexus Convenience Retail Reit · ASX:DXC
Dexus Convenience Retail Reit — HY22 Earnings Presentation
29 slides from Dexus Convenience Retail Reit's earnings presentation, Feb 8, 2022
Slide 1: Dexus Convenience Retail REIT 2022 Half Year Results presentation and property synopsis
Dexus Convenience Retail REIT (ASX:DXC) ASX release 8 February 2022 2022 Half Year Results presentation and property synopsis Dexus Convenience Retail REIT (DXC) releases its 2022 Half Year Results presentation. An investor conference call will be webcast at today at 11.00am on www.dexus.com/investo
Slide 2: Dexus Convenience Retail REIT
Dexus Convenience Retail REIT | GdexUS
Slide 3: Acknowledgement of country
Dexus Convenience Retail REIT | dexus Acknowledgement of country Dexus Convenience Retail REIT acknowledges the Traditional Custodians of the lands on which our business and assets operate, and recognises their ongoing contribution to land, waters and community. We pay our respects to First Nations
Slide 4: Agenda
2022.Halt.Year Results Presentation Agenda Introduction and highlights Financial overview Portfolio performance Summary Appendices Dexus Convenience Retail REIT page 4 page 10 page 14 page 18 page 20 dexus
Slide 5: Introduction and highlights
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Slide 6: HY22 highlights
HY22 highlights Strong result demonstrating the resilience of the portfolio and acquisition growth 1 ar 4.6% distribution per security growth (%) Upgraded FY22 guidance during the half to 23.1 cents per security (5.5% growth) 5 4.4% growth in NTA to $3.83 High-quality portfolio delivered 4.3% like-f
Slide 7: Delivering value
1 Delivering value Successfully delivered on strategy since IPO Distributions (cps) NTA per security ($) Dexus Convenience Retail REIT Core growth drivers 218 219 20.9 18.1 11.0) FY18 FY19 FY20 FY21 FY22 mFirst half ™ Second half Cash-backed and growing distributions Includes acquisition of BP Brend
Slide 8: DXC's strategy
Dexus Convenience Retail REIT | dexus DXC’s strategy Convenience retail and non-discretionary retail mandate with strict investment criteria Strategy to be a leading convenience retail REIT delivering to invest in hig an attractive, defensive and growing income stream non-di ionary retail properties
Slide 9: Market dynamics
Market dynamics Portfolio resilience over the long term Industry trends DXC portfolio well positioned Dexus Convenience Retail REIT | dexus Domestic electric vehicle (EV) adoption expected to reach >60% penetration by 2050 (from <1% currently)! Long-dated leases provide income certainty in the mediu
Slide 10: ESG update
ESG update Supporting initiatives through working with DXC tenants nvironmental Social Governance Today » 60f top 10 DXC tenants have net zero emissions targets » Supporting tenant ESG aspirations and continued investment in sustainability initiatives o DXC facilitated the rollout of onsite solar ac
Slide 11: Financial overview
Slide 12: HY22 financial result
HY22 financial result Strong result with momentum to meet upgraded guidance Dexus Convenience Retail REIT dexus Profit & loss HY22 HY21 Change Net property income! ($m) $21.0 $15.8 A 325% ——> Like-for-like portfolio income growth of 2.3% Contributions from recent acquisitions Statutory net profit ($
Slide 13: Balance sheet and capital management
Balance sheet and capital management Capacity to continue active approach to portfolio growth » Strong balance sheet management with gearing within Key metrics Dexus Convenience Retail REIT | dexus 25 — 40% target range » Sufficient capacity to pursue accretive opportunities Gearing » Actively consi
Slide 14: Portfolio valuation movements
Dexus Convenience Retail REIT | dexus Portfolio valuation movements Sustainable assets with predictable cash flows supporting favourable valuation outcomes » 4.3% like-for-like increase, or 2.7% ($21.1m) total increase, on prior corresponding period book values >» Stronger pricing being achieved on
Slide 15: Portfolio performance
Slide 16: Key portfolio metrics
Key portfolio metrics Dexus Convenience Retail REIT | dexus High-quality sites underpinned by strong income visibility Bad & 1e) 4 112 5.82% 11.5 year 90% 99.7% 3.0% 2.3% properties WACR WALE of property income derived occupancy weighted average like-for-like (by income) from 10 major tenants (by in
Slide 17: Active and disciplined approach to acquisitions
Dexus Convenience Retail REIT | dexus Active and disciplined approach to acquisitions Long lease terms and favourable rent reviews providing sustainable sources of growth >» $73.7 million of acquisitions announced at an attractive average yield of 5.6% and WALE of 10.5 years $18.4m purchase price =
Slide 18: Development
Dexus Convenience Retail REIT | dexus Development Enhancing the portfolio > Hillcrest, South Australia fund-through development completed in November 2021 at a cost of $8.5m, now valued at $9.1 million » Dubbo Service Centre, NSW fund-through project expected to complete by April 2022 and potential
Slide 19: Summary
Slide 20: Summary and FY22 guidance
Dexus Convenience Retail REIT | dexus Summary and FY22 guidance Well placed to deliver on strategy Leading convenience retail REIT delivering an attractive defensive and growing income stream Building sustainable sources of income growth with assets well positioned for the future CP Maintaining a di
Slide 21: Appendices
Slide 22: Leveraging Dexus's capabilities to enhance growth
Dexus Convenience Retail REIT | dexus Leveraging Dexus's capabilities to enhance growth Activating new investment opportunities through an aligned and experienced manager Member of the Dexus group, benefitting from deep acquisition, development and asset management capabilities Leveraging Dexus’s sc
Slide 23: Consolidated profit & loss statement
Dexus Convenience Retail REIT | dexus Consolidated profit & loss statement $'000 HY22 HY21 Net property income 20,964 15,826 Straight lining of rental income 2,812 2,151 Interest income 146 9 Total revenue 23,922 17,986 Management fees (2,460) (1,626) Finance costs (3,172) (2,036) Corporate costs (4
Slide 24: FFO reconciliation
Dexus Convenience Retail REIT | dexus FFO reconciliation $000 HY22 HY21 Statutory net profit after tax for the period 39,979 21,044 Adjusted for: Reversal of straight-line lease revenue recognition (2,812) (2,151) Reversal of fair value (gain) on investment properties (18,473) (6,650) Reversal of fa
Slide 25: Consolidated balance sheet
Dexus Convenience Retail REIT | dexus Consolidated balance sheet $'000 31 Dec 2021 30 June 2021 Cash and cash equivalents 8,163 786 Investment properties 802,879 632,651 Other assets 5,739 13,357 Total assets 816,781 646,794 Borrowings (265,691) (180,769) Distributions payable (7,967) (6,758) Other
Slide 26: Interest rate hedging profile
Interest rate hedging profile 70% 60% 50% 40% 30% 20% 10% 0% 25 2H22 FY23 FY24 FY25 mm Debt hedged (LHS) —Fixed rate (RHS) 2022 Half Year Results Presentation 2% 1% 0% Dexus Convenience Retail REIT | dexus
Slide 27: Market dynamics
Market dynamics Electric vehicle adoption » Demand for traditional automotive fuels should persist in the medium term despite a transition to electric vehicles » Public fast charging will be an important part of electric vehicle infrastructure with well located service stations on major arterial roa
Slide 28: Important information
Dexus Convenience Retail REIT | dexus Important information This presentation ("Material") has been prepared by Dexus Asset Management Limited (ACN 080 674 479, AFSL No. 237500) ("DXAM'’) as the responsible entity of Convenience Retail REIT No. 1 (ARSN 101 227 614), Convenience Retail REIT No. 2 (AR
Slide 29: dexus
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