Slide 1: FY21 Results Presentation
FY21 Results Presentation 18 August 2021
Slide 2: Platform metrics FY21
Platform metrics FY21 PROFORMA1 WEIGHTED NET PROFORMA1 TOTAL AVERAGE TANGIBLE CAP RATE GEARING ASSETS ASSETS A$4.3bn 5.65%2,3 28.3% $3.43ps 30.0% on FY20 35bps on FY20 180bps on FY20 3.3% on FY20 STATUTORY FFO FFO PS DPS PROFIT $369.4m $136.4m 18.4cps 17.5cps4 336.0% on FY20 9.5% on FY20 5.1%
Slide 3: FY21 highlights
FY21 highlights Abacus is a diversified Australian REIT with an investment portfolio concentrated in the Commercial property and Self Storage sectors Deployment of $1 billion1 into key sectors in FY21, funded with a combination of non-core disposals, debt and the December 2020 equity raising Ext
Slide 4: Proforma balance sheet allocation
Proforma1 balance sheet allocation JUNE 2021 JUNE 2020 $4.3 billion of Total Assets2 $3.3 billion of Total Assets2 Commercial Self Storage Commercial Self Storage 49% 48% 55% 39% $2.1 billion $2.0 billion $1.7 billion $1.2 billion Office $1,581m Established3 $874m Office $1,493m Established3 $722m R
Slide 5: Capital deployment
Capital deployment Diligent deployment of over $2.3 billion into key sectors since FY17 has transformed Abacus into a strong asset backed, annuity style investment house Movement in Investment Portfolio1 (in millions) $4.1 Commercial Property 257 billion Self Storage 293 (16) (107) (3) 135 271 89 (4
Slide 6: Financial Metrics
Financial Metrics
Slide 7: FY21 key financial metrics
FY21 key financial metrics Result highlights in FY21: KEY FINANCIAL METRICS FY21 FY20 FFO up 9.5% to $136.4 million – Commercial portfolio FFO contribution increased 23.9% to $86.9 million AIFRS statutory profit $369.4m $84.7m – Self Storage portfolio FFO contribution increased 15.5% to $69.6 mill
Slide 8: Balance sheet – FY21
Balance sheet – FY21 NTA per security up 3.3% to $3.43 Balance sheet gearing at 30 June 2021 was 22.5% KEY FINANCIAL METRICS FY21 FY20 Completion of a $402 million Entitlement Offer in December 2020 NTA per security $3.43 $3.32 Bank facility limit increase of $747 million1 on attractive term
Slide 9: Investment portfolio – valuation
Investment portfolio – valuation The revaluation process for Abacus resulted in a net increase in investment property values for FY21 of $237.4 million FY21 FY20 FY21 FY20 – Gain of $227.9 million or 19.0% across the Self Storage INVESTMENT weighted weighted Valuation Valuation PORTFOLIO1 average
Slide 10: Operating Performance
Operating Performance
Slide 11: Self Storage – snapshot
Self Storage – snapshot SELF STORAGE $1.8 billion (45% of total assets1) 5.8% 63% Passing yield2 Assets located in Top 3 Significant Urban Areas3 $264 $290 RevPAM2 Average rent psm2 90.9% 75.1% Occupancy Occupancy (Established)2 (Stabilising)4 6.3% 20.1% RevPAM growth Revenue growth (Established)2 (
Slide 12: Self Storage – occupancy trends
Self Storage – occupancy trends1 VIC NSW QLD 94.0% 94.0% 96.0% 92.0% 92.0% 94.0% 90.0% 90.0% 92.0% 88.0% 88.0% 90.0% 86.0% 86.0% 88.0% 84.0% 84.0% 86.0% 82.0% 82.0% 84.0% 80.0% 80.0% 82.0% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Slide 13: Storage King – operational update
Storage King – operational update STORE GROWTH DRIVING REVENUE Storage King currently manages 181 stores, (48% Abacus vs 52% licensee stores) with 3 stores added in 2H21 Storage sector benefitting from tail winds of work from home, decluttering, e-commerce and housing market activity Brand ref
Slide 14: Self Storage – portfolio additions
Self Storage – portfolio additions ACQUISITIONS DEVELOPMENTS Disciplined, metro acquisition strategy with a strong Over 13,000 sqm of NLA delivered pipeline Development pipeline of over $100 million will $142 million of Self Storage acquisitions settled deliver more than 70,000 sqm of NLA –
Slide 15: Commercial: Office snapshot
Commercial: Office snapshot OFFICE $1.6 billion (42% of total assets1) 95.5% 4.3% Occupancy2 LFL income growth2,3 3.9 yrs 5.50% WALE2 WACR4 100 372 Leasing deals Customers 98% 1% Rent collected5 Waivers provided6 1. As at FY21. Excludes investments in cash and other assets. 2. Excludes development a
Slide 16: Commercial: Office leasing metrics
Commercial: Office leasing metrics LEASE EXPIRY PROFILE (BY RENT) 58,170 sqm 32% new 23% leased in FY211 68% renewals 29% 34% on new deals 19% average incentive 23% on renewals 18% 3.9% 10% on new deals leasing spreads 2% on renewals 14% 13% 3.8% 99% fixed 11% average rent review 1% CPI $6032 psm $7
Slide 17: Commercial: Capital transactions and developments
Commercial: Capital transactions and developments COMMERCIAL TRANSACTIONS AND DEVELOPMENT $425 million invested, including: – Myer Bourke Street, Melbourne VIC - 33.3% acquired for $135.2 million, settled post balance date – Oasis Centre, Broadbeach QLD - Additional 60% acquired for $103.5 million
Slide 18: Commercial: Retail snapshot
Commercial: Retail snapshot RETAIL $343 million (9% of total assets1) 92.7% 1.9% Occupancy2 LFL income growth2 5.4 yrs 6.37% WALE2 WACR 26 205 Leasing deals Customers 97% 3% Rent collected3 Waivers provided4 1. As at FY21. Excludes investments in cash and other assets. 2. Excludes development affect
Slide 19: Sustainability – embedded in how we conduct business
Sustainability – embedded in how we conduct business Integration of ESG across the business to drive long term sustainable growth Public Sustainability Targets Abacus Sustainability Strategy Actively exploring opportunities and managing risks Deliver long-term sustainable outcomes for our stakeholde
Slide 20: Summary and Outlook
Abacus PROPERTY Summary and Outlook
Slide 21: Outlook
Outlook Abacus is positioned as a strong asset backed, annuity style investment house focused on the ownership and management of Commercial and Self Storage real estate and operation of storage locations Strategic focus is in key sectors of Self Storage and Commercial real estate Conservative ge
Slide 22: FY21 Data Pack
Abacus FY21 Data Pack
Slide 23: Contents
Contents Abacus Property Group Overview 24 Financial Performance 25-31 Investment Portfolio 32-35 Non-Core Investments 36 Glossary 37 Important information 38 23 Abacus Property Group | FY21 Results Presentation
Slide 24: About Abacus
About Abacus Abacus Property Group (ASX:ABP), is a diversified Australian REIT with an investment portfolio concentrated in the Commercial property and Self Storage sectors. We invest capital in real estate opportunities to deliver superior long term returns and maximise securityholder value. Abacus
Slide 25: Balance sheet allocation
Balance sheet allocation JUNE 2021 JUNE 2020 $4.1 billion of Total Assets1 $3.3 billion of Total Assets1 Commercial Self Storage Commercial Self Storage 52% 45% 55% 39% $2.0 billion $1.8 billion $1.7 billion $1.2 billion Office $1,646m Established2 $874m Office $1,493m Established2 $722m Retail $343
Slide 26: Segment earnings
Segment earnings SELF PROPERTY COMMERCIAL OTHER FY21 TOTAL FY20 TOTAL STORAGE DEVELOPMENT Rental income 120.3 111.3 231.6 195.7 Finance income 15.1 15.1 46.8 Fee income 3.5 9.6 13.1 5.0 Share of profit from equity accounted investments1, 2 7.5 7.5 9.7 Sale of inventory 3.0 3.0 15.4 Other income 3.5
Slide 27: Segment balance sheet
Segment balance sheet PROPERTY PROPERTY INVESTMENT DEVELOPMENT OTHER FY21 FY20 ($m) ($m) ($m) ($m) ($m) Commercial investment properties 1,919.7 1,919.7 1,612.2 Self Storage investment properties 1,430.2 1,430.2 1,040.7 PP&E, equity accounted and other investments, 366.6 62.3 428.9 345.0 financial a
Slide 28: Net tangible asset reconciliation
Net tangible asset reconciliation FY21 FY20 Net assets 2,901.9 2,206.7 Less Total external non-controlling interest - (5.0) Total stapled securityholders’ interest in equity 2,901.9 2,201.7 Less Intangible assets and goodwill (106.3) (32.4) Deferred tax assets/liabilities (net) 15.3 1.9 Total net ta
Slide 29: Debt facilities
Debt facilities CAPITAL MANAGEMENT METRICS FY21 FY20 Total bank debt facilities1 $1,860m $1,113m Total bank debt drawn $960m $974m Term to maturity 4.8 yrs 3.9 yrs % hedged 47% 48% % hedged of total debt facilities1 24% 42% Weighted average hedge maturity 2.1 yrs 2.3 yrs Average cost of debt – drawn
Slide 30: Proforma debt maturity profile as at 30 June 2021
Proforma1 Debt maturity profile as at 30 June 2021 ($’m) 400 Available bank facility Committed bank facility Drawn bank debt 300 128.4 92.9 200 62.8 62.8 54.4 160.7 238.2 227.0 100 166.5 140.5 150.0 150.0 130.0 31.0 34.6 30.1 0 HY22 FY22 HY23 FY23 HY24 FY24 HY25 FY25 HY26 FY26 HY27 FY27 HY28 1. Incl
Slide 31: Fixed hedging maturity profile as at 30 June 2021
Fixed hedging maturity profile as at 30 June 2021 Fixed Debt, Interest Rate Swaps & Collars (#039;m) Weighted Average Fixed Rate 500 5.0% 400 4.0% 300 3.0% 200 2.0% 100 1.0% 0 0.0% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 31 Abacus Property Group | FY21 Results Presentation
Slide 32: Investment portfolio metrics
Investment portfolio metrics PORTFOLIO METRICS SELF RETAIL & INVESTMENT PORTFOLIO SECTOR DIVERSIFICATION OFFICE TOTAL FY21 STORAGE OTHER Retail & Other Value1 ($m) 1,646 1,756 388 3,790 10% No. of assets 23 932 6 122 Office 44% NLA (sqm)3,4 127,410 457,500 48,005 632,915 Self Storage 46% WACR1 (%) 5
Slide 33: Portfolio revaluations
Portfolio revaluations VALUATION WEIGHTED AVERAGE CAP RATE ABACUS INVESTMENT PORTFOLIO BY SECTOR 30 JUNE 2021 ($’000) 30 JUNE 2021 Office $1,646,361 5.50% Self Storage $1,755,729 5.74% Retail & Other $388,333 5.62% Total investment portfolio $3,790,423 5.65% Note: Total managed Office asset value eq
Slide 34: Self Storage metrics
Self Storage metrics PERFORMANCE METRICS AUS NZ FY21 FY20 PERFORMANCE METRICS FY21 FY20 Total assets 78 15 931 79 Storage revenue 98.83 79.4 NLA (sqm) 378,845 78,655 457,500 383,010 Other revenue 12.5 9.2 Occupancy (%) 90.8 91.5 90.92 88.32 Total revenue 111.3 88.6 Rental rate (psm) A$290 A$291 A$29
Slide 35: Self Storage development pipeline
Self Storage development pipeline Over 70,000 sqm of identified net lettable area to be developed over the short to medium-term Anticipated return1 on invested capital of 8.0%+ NEW STORE PROJECT (SQM) FY22 FY23 FY24+ Rowville (VIC) 5,500 Woonona (NSW) 4,500 Epping (VIC) 7,000 Prestons (NSW) 6,500 De
Slide 36: Non-core legacy investments
Non-core legacy investments Abacus continues to successfully execute on its stated strategy to realise legacy exposures Non-core loan assets reduced by 50% during FY21 with non-core residential now representing 3% of total assets1 – repayment of $82 million of residential land and mortgages during
Slide 37: Glossary
Glossary TERM DEFINITION TERM DEFINITION AIFRS Australian International Financial Reporting LFL Like for like Standards AREIT Australian Real Estate Investment Trust NABERS National Australian Built Environment Rating system CBD Central business district NLA Net lettable area CPI Consumer price inde
Slide 38: Important information
Important information The information provided in this document is general, and may not be suitable for the specific purposes of any user of this document. It is not financial advice or a recommendation to acquire Abacus Property Group securities (ASX: ABP). Abacus Property Group believes that the i