Cromwell Property Group · ASX:CMW
Cromwell Property — Investor Presentation (November 2018)
38 slides from Cromwell Property's investor presentation, Nov 28, 2018
Slide 1: Equity Raising Presentation
For personal use only EQUITY RAISING PRESENTATION 28 November 2018 Cromwell – FY18 Results 1 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Important Information & Disclaimer
Important Information & Disclaimer NOT FOR DISTRIBUTION IN THE UNITED STATES For personal use only Disclaimer This presentation and its appendices (Presentation) is dated 28 November 2018 and has been prepared by Cromwell Property Group, which comprises Cromwell Corporation Limited (ACN 001 056 980)
Slide 3: Important Information & Disclaimer
Important Information & Disclaimer Future Performance For personal use only This Presentation contains "forward-looking" statements. Forward-looking statements can generally be identified by the use of forward-looking words such as "anticipated", "expected", "projections", ‘guidance’, ‘forecast", "e
Slide 4: Equity Raising Overview
Equity Raising Overview For personal use only Cromwell Property Group (Cromwell) is undertaking a 2 for 13 accelerated non-renounceable entitlement offer of stapled securities in Cromwell (Securities) to raise up to $300 million at a fixed issue price of $0.98 per Security (Equity Raising) The E
Slide 5: Transaction Rationale
Transaction Rationale For personal use only CEREIT Investment provides attractive Funding capacity to pursue accretive Gearing reduced from 37% to between standalone returns, supports CEREIT’s value add development opportunities 30%-33%2 pro forma for CEREIT continued growth and furthers across exis
Slide 6: Overview of CEREIT Transaction
Overview of CEREIT Transaction1 Acquisition of 23 properties for $600m (€384m) across 3 portfolios in CEREIT Overview For personal use only Europe Pre-CEREIT Post-CEREIT CEREIT key metrics Partly funded via capital raising of c.$350m (c.€224m) announced on 31 Transaction2 Transaction October 2018
Slide 7: Property Portfolio – FY19+ Value Enhancement Opportunities
Property Portfolio – FY19+ Value Enhancement Opportunities For personal use only Victoria Avenue, Chatswood – Development application submitted April 2018 to add new four storey office building, hotel, retail and other amenity to site – Result of DA expected by December 2018, with construction, subj
Slide 8: Property Portfolio – FY19+ Value Enhancement Opportunities
Property Portfolio – FY19+ Value Enhancement Opportunities For personal use only Tuggeranong Office Park Further development – Cromwell has a 50% ownership interest in LDK Healthcare, opportunity the operator of a planned >350 apartment community at Tuggeranong Soward Way, DSS – Construction has com
Slide 9: Property Portfolio – FY19+ Value Enhancement Opportunities
Property Portfolio – FY19+ Value Enhancement Opportunities For personal use only Collins Street, Melbourne – Development application expected to be submitted in early 2019 – Site capacity for additional 14,000 sqm of office, 175 room hotel and residential accommodation – Likely partnership opportuni
Slide 10: Property Portfolio – FY18 Value Enhancements Completed
Property Portfolio – FY18 Value Enhancements Completed Both Soward Way and Northpoint Tower, representing a combined $300 For personal use only million in capital investment, reached practical completion in FY18. Soward Way, ACT Bespoke 30,704 sqm new building constructed for Department of Social
Slide 11: Sources and Uses of Funds
Sources and Uses of Funds For personal use only Sources of funds $m FY19 operating earnings expected to be Guidance maintained at not less than 8.00 cps Equity Raising proceeds 300.61 maintained FY19 distributions expected to be Total sources 300.6 maintained at not less than 7.25 cps Gearing
Slide 12: Equity Raising Details
Equity Raising Details For personal use only 2 for 13 accelerated, non-renounceable entitlement offer to raise up to $300 million Structure Committed Amount of $210 million1, comprising underwritten amount and major securityholder commitments Issue price of $0.98 per security represents a: 4
Slide 13: Indicative Timetable
Indicative Timetable For personal use only Event Date1 Announcement of Equity Raising Wednesday, 28 November 2018 Institutional Entitlement Offer opens Wednesday, 28 November 2018 Institutional Entitlement Offer closes Thursday, 29 November 2018 Trading halt lifted – securities recommence trading on
Slide 14: Conclusion
Conclusion For personal use only CEREIT Investment expected to provide attractive standalone returns, support CEREIT’s continued growth and further Cromwell’s transition of funds platform to permanent capital sources Strengthened balance sheet with gearing reduced from 37% to between 30% - 33%1 pro
Slide 15: Appendix A: Pro Forma Balance Sheet
For personal use only APPENDIX A Pro Forma Balance Sheet
Slide 16: Pro Forma Balance Sheet
Pro Forma Balance Sheet For personal use only DRP 24/8/18 CEREIT Acq'n Pro Forma Pro Forma Actual CEREIT Mgt Equity CEREIT $m PRP 17/9/18 Fees in 30 June 2018 30 June 2018 30 June 2018 Fees in units Raising1 Investment2 DRP 23/11/18 units / cash A$300m raise A$210M raise 4 Cash and cash equivalents
Slide 17: Appendix B: Overview of Cromwell Property Group
For personal use only APPENDIX B Overview of Cromwell Property Group
Slide 18: Cromwell Property Group Overview
Cromwell Property Group Overview Cromwell is a real estate investor and manager operating on three continents with a global investor base For personal use only Cromwell offers securityholders an attractive combination of stable long term cash flows, demonstrated asset enhancement capabilities an
Slide 19: Increased Investment Focus To Drive Future Growth
Increased Investment Focus To Drive Future Growth The ‘Invest To Manage’ strategy involves connecting FY18 saw successful execution of this strategy with For personal use only different capital sources to a range of different pipeline the warehousing of three Dutch assets for the opportunities s
Slide 20: Cromwell Property Group Statistics
Cromwell Property Group Statistics1 For personal use only Diverse Product Range Track Record of Successful Partnerships Sector and geographic diversification Portfolio Platform FUM by Sector Office 9.2% $11.5bn 380+ 5.7% Retail FUM 12.6% people Industrial / Logistics 54.4% Property Securities 320+ 1
Slide 21: Property Portfolio - Snapshot as at June 2018
Property Portfolio - Snapshot as at 30 June 2018 Focus on secondary assets in CBD, CBD fringe and established suburban markets with potential to outperform For personal use only Core QANTAS GLOBAL HQ CROWN STREET 700 COLLINS STREET 58% Portfolio Long WALE, full Mascot, NSW MCKELL BUILDING Sydney, NS
Slide 22: Increased Investment Focus To Drive Future Growth
Increased Investment Focus To Drive Future Growth Cromwell is positioning itself to deliver future For personal use only Cromwell Annualised Performance Returns to 30 June 2018 operating profit growth by utilising existing liquidity and ongoing asset recycling initiatives 30.0% Success of CEREIT
Slide 23: Appendix C: Overview of CEREIT
For personal use only APPENDIX C Overview of CEREIT
Slide 24: Overview of CEREIT
Overview of CEREIT Outperformance since IPO For personal use only Geographic and asset class composition3 • CEREIT now has three consecutive quarters of results after Balanced Asset Class Exposure4 Diversified Geography Exposure4 successful listing on Singapore Exchange Securities Trading Limited (t
Slide 25: Funds Management – CEREIT Post Acquisitions
Funds Management – CEREIT Post Acquisitions Providing investors with a unique opportunity to invest in scale and diversification across Europe For personal use only Properties 98 New Countries Lettable Floor Area (sq m) 1,385,990 Finland Occupancy Rate(1)(2) (by Lettable Floor Area) 88.7% Properties
Slide 26: Appendix D: Key Risks
For personal use only APPENDIX D Key Risks
Slide 27: Key Risks
Key Risks General Risks Regulatory issues and changes in law For personal use only The financial performance of Cromwell may be materially affected by adverse changes in laws or other government regulation. Changes in government policy (including fiscal, monetary and regulatory policies at Federal,
Slide 28: Key Risks
Key Risks General Risks (cont.) Force majeure event For personal use only Force majeure is the term generally used to refer to an event beyond the control of a party claiming that the event has occurred, including "acts of God", fire, flood, earthquakes, war, acts of terrorism and labour strikes. So
Slide 29: Key Risks
Key Risks Cromwell/industry specific risks Future acquisitions For personal use only Cromwell Property Group proposes to acquire further properties or other assets in the future. However, it expects only to do so to the extent that such acquisitions are in accordance with its investment strategy and
Slide 30: Key Risks
Key Risks Cromwell/industry specific risks (cont.) Revaluations For personal use only In accordance with Australian Accounting Standards, Cromwell Property Group’s properties are required to be carried at fair value, with any increase or decrease in the value of those properties recorded in the inco
Slide 31: Key Risks
Key Risks Cromwell/industry specific risks (cont.) For personal use only Funds Management Cromwell and certain of its controlled entities act as investment manager for a number of investment funds that are open to investment from third parties. A large portion of Cromwell’s income is derived from th
Slide 32: Key Risks
Key Risks Cromwell/industry specific risks (cont.) Realisation of assets For personal use only Property assets are by their nature illiquid investments. This may make it difficult to realise assets in the short term in response to changes in economic or other conditions, which may impact cashflow li
Slide 33: Appendix E: Control Implications and Major Securityholders
For personal use only APPENDIX E Control Implications and Major Securityholders
Slide 34: Control Implications and Major Securityholders
Control Implications and Major Securityholders As the Equity Raising is structured as a pro-rata issue, if all of Cromwell's existing securityholders take up their entitlements under the Equity Raising, the Equity Raising will not have any effect For personal use only on the control of Cromwell. Ent
Slide 35: Appendix F: Foreign Selling Restrictions
For personal use only APPENDIX F Foreign Selling Restrictions
Slide 36: Foreign Selling Restrictions
Foreign Selling Restrictions This Presentation does not constitute an offer of stapled securities (New Securities) of Cromwell in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to For personal use only any person, and the New Securities may not be
Slide 37: Foreign Selling Restrictions
Foreign Selling Restrictions Switzerland For personal use only The New Securities may not be distributed in Switzerland and will not be listed on the SIX Swiss Exchange (SIX) or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard t
Slide 38: Cromwell – FY18 Results
For personal use only Cromwell – FY18 Results 38 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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