Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — H1 2024 Earnings Presentation
25 slides from Cedar Woods Properties's earnings presentation, Feb 22, 2024
Slide 1: Half Year FY24 Financial Results
HALF YEAR FY24 FINANCIAL RESULTS Monarch Apartments, Glenside, SA
Slide 2: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY Cedar Woods acknowledges the traditional custodians of this land. We pay our respects to the Elders past, present & emerging. For they hold the memories, the traditions & the culture of Aboriginal & Torres Strait Islander people across the nation. 2 Smoking Ceremony at Hen
Slide 3: Company Overview
COMPANY OVERVIEW ◼ Property development company with 35 year track record of delivering earnings for shareholders ◼ Portfolio of 35 quality projects & total pipeline of ~ 9,700 lots to support future earnings ◼ Strategy of diversification - mix of projects delivering apartments, townhouses, commerci
Slide 4: Strategy
HALF YEAR FY24 FINANCIAL RESULTS STRATEGY To grow our national project portfolio, diversified by geography, product type & price point, so that it Geography Product Type Price Point continues to hold broad customer Good geographic spread Range of housing lots, Wide range of price appeal & performs w
Slide 5: New Partnerships
HALF YEAR FY24 FINANCIAL RESULTS NEW PARTNERSHIPS ◼ Some future acquisitions to be undertaken in partnership in strategic shift. ◼ Partnerships leverage the existing skill base, allow operations to be expanded & further diversified, generate recurring fee income & diversify the Company’s funding sou
Slide 6: Diversified Portfolio
HALF YEAR FY24 FINANCIAL RESULTS DIVERSIFIED PORTFOLIO Portfolio of 35 quality projects & total pipeline of 9,700 lots/apartments to support future earnings LOTS BY LOCATION PRESALES BY PRESALES BY # lots/homes/offices LOCATION PRODUCT TYPE # lots/homes/offices # lots/homes/offices Commercial SA WA
Slide 7: Sale of Williams Landing Shopping Centre (WLSC)
SALE OF WILLIAMS LANDING SHOPPING CENTRE (WLSC) ◼ Unconditional sale of WLSC & 1 hectare of adjacent land for $60m ◼ Settlement of WLSC to occur in H2 FY24, with adjacent land to settle in H1 FY25 ◼ NPAT of approximately $16.8m to be realised mainly in H2 FY24. ◼ Purchaser experienced in owning and
Slide 8: H1 FY24 Summary
HALF YEAR FY24 FINANCIAL RESULTS H1 FY24 SUMMARY NET PRESALE SALES CONTRACTS $2.6m As guided, NPAT is significantly weighted to H2 in FY24 $123.2m 529 lots $525m Lots / homes / offices sold SETTLEMENTS ACQUISITIONS 3.2c 8.0c 417 lots $28m Lots / homes / offices Land acquisition payments funded in H1
Slide 9: Income Statement
HALF YEAR FY24 FINANCIAL RESULTS INCOME STATEMENT ◼ Lower revenue & higher finance costs in the current period has resulted in a lower profit result for H1 FY24, notwithstanding improved gross margin and stable administration overhead 31 Dec 2023 31 Dec 2022 $m $m Revenue 19% lower in H1 FY24 due to
Slide 10: Balance Sheet & Funding
HALF YEAR FY24 FINANCIAL RESULTS BALANCE SHEET & FUNDING 31 Dec 2023 30 Jun 2023 Total assets (book value) $838.1m $783.4m Net assets (equity) $428.6m $431.1m Net tangible assets per share (book value not market value) $5.20 $5.21 Net bank debt $274.0m $195.8m Net bank debt to total tangible assets
Slide 11: Cash Flow & Capital Management
HALF YEAR FY24 FINANCIAL RESULTS CASH FLOW & CAPITAL MANAGEMENT Long term support from financiers ◼ Undrawn corporate finance facility headroom of $50.2m ◼ Corporate facility limit temporarily increased by $30m to $360m in Dec 2023 to provide additional capacity until significant settlements take pl
Slide 12: New Housing Sector Conditions
HALF YEAR FY24 FINANCIAL RESULTS NEW HOUSING SECTOR CONDITIONS ◼ Sales momentum continued in Q2 FY24, with the strongest quarterly sales result recorded in the last 2 years (357 sales vs 2-year average of 283) ◼ Sound fundamentals with sales driven by investors, downsizers & first home buyers. First
Slide 13: New Housing Supply Shortages
HALF YEAR FY24 FINANCIAL RESULTS NEW HOUSING SUPPLY SHORTAGES ◼ Supply shortages of all forms of residential housing, across the country ◼ Those with a supply pipeline are set to benefit - Cedar Woods has built up its portfolio to 35 projects, ~9700 lots, many are shovel ready ◼ Q1 FY24 dwellings st
Slide 14: Population Growth Buyer Profiles
HALF YEAR FY24 FINANCIAL RESULTS POPULATION GROWTH BUYER PROFILES ◼ Elevated population growth is adding materially to underlying housing demand ◼ National new home loan commitments (excl. refinancing) lifted in value by 11.7% in 2023 with both investor (+20.4%) & owner-occupier ◼ Net Overseas Migra
Slide 15: ESG
HALF YEAR FY24 FINANCIAL RESULTS ESG ◼ Projects and workplaces have good sustainability credentials & emissions reduction practices ◼ Work ongoing in measuring & reducing project & corporate GHG emissions ◼ Delivery of Eglinton microgrid commenced in August 2023 ◼ National relationship with The Smit
Slide 16: Western Australia
HALF YEAR FY24 FINANCIAL RESULTS WESTERN AUSTRALIA ◼ 13 projects, more than 5,000 lots / dwellings ◼ Projects catering for a range of buyer types, with First Home Buyers being the largest cohort ◼ Product type includes land subdivision, townhouses & apartments ◼ Three new projects - Atwater, Eglinto
Slide 17: Victoria
HALF YEAR FY24 FINANCIAL RESULTS VICTORIA ◼ 9 projects, including 3 at Williams Landing ◼ More than 2,000 lots / dwellings / offices plus 13 ha of mixed-use sites ◼ Product type includes land subdivision, townhouses, apartments & commercial projects ◼ Range of price points & buyer types ◼ Soft sales
Slide 18: Queensland
HALF YEAR FY24 FINANCIAL RESULTS QUEENSLAND ◼ 6 projects, including 2 at Greville ◼ More than 1,400 lots / dwellings in the pipeline ◼ Product type includes land estates, townhouses & apartments ◼ QLD pipeline to increase with strategic partnership with QIC ~400 apartments & townhouses in Robina ◼ D
Slide 19: South Australia
HALF YEAR FY24 FINANCIAL RESULTS SOUTH AUSTRALIA ◼ 7 well located projects at Glenside & Fletcher's Slip ◼ Glenside – 3 projects under construction, 1 project in sales phase ◼ Fletcher’s Slip - 2 projects under construction, 1 project in sales phase ◼ More than 1,100 townhouses & apartments remainin
Slide 20: New Projects to Deliver First Earnings
HALF YEAR FY24 FINANCIAL RESULTS NEW PROJECTS TO DELIVER FIRST EARNINGS FY2024 Future years ▪ Eglinton Village residential land, WA ▪ Incontro apartments, WA ▪ Atwater residential land, WA ▪ Fieldstone residential land, VIC ▪ The Acreage at Dalyellup residential land, WA ▪ Southbank apartments, VIC
Slide 21: Company Outlook
HALF YEAR FY24 FINANCIAL RESULTS COMPANY OUTLOOK ◼ Enquiry & sales levels at two-year highs, with WA leading the way ◼ First home buyer demand is picking up, supporting strong sales for other buyer categories in most states ◼ Macro-economic factors indicate the new housing sector has a strong medium
Slide 22: Disclaimer
cedarwoods.com.au While every effort is made to provide complete and accurate information, Cedar Woods Properties Limited does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. Subject to any terms implied by law
Slide 23: Project Pipeline
HALF YEAR FY24 FINANCIAL RESULTS CORRIDOR / LOTS/UNITS LOTS/UNITS PROJECT PROJECT NAME WESTERN AUSTRALIA - PERTH Ariella, Brabham The Brook at Byford North East South East LOCATION PROJECT TYPE Residential Land Residential Land PROJECT 1,215 421 REMAIN 439 16 FY24 FY25 FY26 FY27 FY28 FY29 Rivergums,
Slide 24: Case Study 1: Eglinton Village, WA
CASE STUDY 1: EGLINTON VILLAGE, WA ◼ Total yield 1,268 lots plus shopping centre ◼ 500 meters from train station ◼ 114 lots completed & sold ◼ First settlements March 2024 ◼ Over 1,150 lots remaining for development ◼ Project life remaining ~ 10 years 2 ◼ Average lot size & price - 400m ; $266,000 ◼
Slide 25: Case Study 2: Glenside, SA
CASE STUDY 2: GLENSIDE, SA ◼ Large scale urban infill development ◼ Over 1000 apartments & townhouses ◼ 17 Ha, 3km from Adelaide CBD ◼ 786 dwellings remaining - 7+ years to go ◼ 224 presales in hand, average price $933,000 ◼ 73 settlements forecast FY24 ◼ Primary buyer profiles – downsizers, retiree
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