Peet Limited · ASX:PPC
Peet — Euroz Rottnest Conference 2020
28 slides from Peet's conference presentation, Mar 11, 2020
Slide 1: Euroz Rottnest Conference
For personal use only EUROZ ROTTNEST CONFERENCE 11 MARCH 2020
Slide 2: Overview
For personal use only OVERVIEW FY19 RESULTS | AUGUST 2019 | 2
Slide 3: Peet is well positioned to leverage its unique model
PEET IS WELL POSITIONED TO LEVERAGE ITS UNIQUE MODEL MEDIUM TERM OUTLOOK SUPPORTED BY ONGOING MARKET RECOVERY For personal use only 1H FY20 result in-line with expectations given significant second half weighting of forecast 1 settlements Recovery in market conditions demonstrated by 52% increase in
Slide 4: Largest 'pure play' residential developer in Australia
LARGEST ‘PURE PLAY’ RESIDENTIAL DEVELOPER IN AUSTRALIA INTEGRATED MODEL WITH PROVEN CAPITAL PARTNERING CAPABILITY For personal use only • Property development company established in 1895 • Listed on the ASX in 2004 Significant and diversified land bank encompassing more than 49,000 lots across 51
Slide 5: Broad customer and product reach
BROAD CUSTOMER AND PRODUCT REACH SCALE PIPELINE WITH LOW COST BASE PROVIDING SOLID EMBEDDED MARGINS Peet manages a broad property For personal use only portfolio, encompassing 49,000 lots across 51 projects 49,058 Diversified land bank LOTS strategically located in growth corridors of major cities i
Slide 6: Significant operating leverage potential
SIGNIFICANT OPERATING LEVERAGE POTENTIAL c.80% OF LAND BANK EXPECTED TO BE IN PRODUCTION BY FY22 For personal use only 60,000 c.80% Pipeline in 50,000 production 49,058 lots c.65% Pipeline in Projects: 8 Lots: 9,382 NO. OF LOT/UNITS production 39,676 lots 40,000 Projects: 13 30,501 lots Lots: 9,175
Slide 7: Net Asset Value (NAV)
NET ASSET VALUE (NAV) SIGNIFICANT FUNDS MANAGEMENT PLATFORM VALUE NOT CAPTURED IN NTA For personal use only NET ASSET VALUATION - $2.1bn in Assets Under Management PEET CAPITAL THIRD PARTY CAPITAL NTA PER SHARE3: $1.18 NAV PEET INVENTORIES PEET CO-INVESTMENTS FUNDS MANAGEMENT AND JV $539 million1 $3
Slide 8: Delivering against our strategy
DELIVERING AGAINST OUR STRATEGY PORTFOLIO WELL POSITIONED FOR POSITIVE MEDIUM TO LONG TERM GROWTH AND VALUE CREATION STRATEGY KEY ACHIEVEMENTS (1H20) For personal use only Invest in high quality land in strategic • Two medium density townhouse sites and one broadacre INVEST locations across country
Slide 9: Results Overview
For personal use only RESULTS OVERVIEW
Slide 10: Group 1H20 financial results
GROUP 1H20 FINANCIAL RESULTS RESULT IN LINE WITH EXPECTATIONS GIVEN SIGNIFICANT SECOND HALF SETTLEMENT SKEW For personal use only KEY PERFORMANCE STATISTICS 1H20 1H19 VAR (%) Lot sales1 1,012 964 5% Group sales were up due to improving east coast markets and lower cancellation rates as restrictive l
Slide 11: Group balance sheet
GROUP BALANCE SHEET CONTINUED EXECUTION OF CAPITAL MANAGEMENT STRATEGY CAPITAL MANAGEMENT METRICS 1H20 FY19 NET DEBT6 ($M) AND GEARING4 (%) For personal use only Cash at bank1 $29.2m $33.6m 28% 2 Bank debt $53.5m $23.2m 25% 23% Peet bonds/convertible notes3 $225.0m $225.0m 19% Gearing4 28.1% 24.6% 2
Slide 12: Group cash flow summary
GROUP CASH FLOW SUMMARY OPERATING CASH FLOW IMPACTED BY LOWER SETTLEMENT VOLUMES IN 1H20 FY19 FY18 For personal use only 1H20 1H19 CASH FLOWS RELATED TO OPERATING ACTIVITIES $M $M Receipts from customers 90.8 120.7 Revenue lower due to lower land settlements and development settlement mix Payments f
Slide 13: Operating Performance
For personal use only OPERATING PERFORMANCE
Slide 14: Improving sales activity underpinning outlook
IMPROVING SALES ACTIVITY UNDERPINNING OUTLOOK DECEMBER QUARTER SALES UP 54% ON For personal use only PRIOR QUARTER QUARTERLY SALES1 (LOTS) Strong recovery in sales volumes, albeit off a low base • Notable uptick in December quarter with sales up 54% on prior quarter • VIC and QLD seeing strongest re
Slide 15: Contracts on hand
CONTRACTS ON HAND CONTRACTS ON HAND1 (LOTS) CONTRACTS ON HAND REFLECT IMPROVING MARKET CONDITIONS 2,257 For personal use only 1,496 1,257 Contracts on hand1 have increased by 19% since 30 June 2019 to 1,496 lots • Reflects gradually improving market conditions across eastern states FY18 FY19 1H20 •
Slide 16: Outlook
For personal use only OUTLOOK
Slide 17: New projects provide medium term earnings visibility
NEW PROJECTS PROVIDE MEDIUM TERM EARNINGS VISIBILITY PIPELINE OF APPROXIMATELY 49,000 LOTS PROVIDING For personal use only VISIBILITY OF FUTURE EARNINGS FY20 – FY22 NEW PROJECT RELEASE SCHEDULE Up to seven new land projects Project State Segment Commencement of Lots1/Units Project Life and six mediu
Slide 18: For personal use only
For personal use only EUROZ ROTTNEST CONFERENCE | MARCH 2020 | 18
Slide 19: Flagstone - QLD
FLAGSTONE - QLD • 1,245 ha master planned community situated in a key South East Queensland growth For personal use only corridor 38 km south west of Brisbane’s CBD • Total yield of approx. 12,000 lots with a GDV of more than $3.4 billion - Expected settlement period to FY40 • The only town-centre i
Slide 20: Flagstone - QLD
FLAGSTONE - QLD For personal use only • Flagstone City will create over 10,000 new jobs and support retail, commercial, education and childcare, recreation, health, sporting and community infrastructure • Achieved $30 million in commercial site sales to end users such as Coles, Catholic Education, M
Slide 21: Brabham - WA
BRABHAM - WA • 220 hectare landholding, 20 km For personal use only from the Perth CBD, adjacent to the proposed future METRONET Whiteman Park Station • Development Management Agreement with Department of Communities • Total yield of approximately 3,300 dwellings with a GDV of approx. $750 million •
Slide 22: Craigieburn West - VIC
CRAIGIEBURN WEST - VIC • Located in the Craigieburn West Precinct Structure Plan For personal use only • 25km north of the Melbourne CBD • Approximate yield: 1,200 dwellings • Acquired across 2014 and 2015 • Leverage existing amenity in Peet’s adjacent Aston development − 1,700 dwellings − 12 hectar
Slide 23: Palmview - QLD
PALMVIEW - QLD For personal use only • A 129 ha site located 9 km from Maroochydore CBD on the Sunshine Coast QLD • Total yield of approx. 1,100 dwellings, comprising Land and Medium Density Townhouses • Expected settlements from FY21 – FY32 • Key strategic location, central to the Sunshine Coast an
Slide 24: Tonsley - SA
TONSLEY - SA • 11 hectare site located 9 km south For personal use only west of Adelaide CBD • Launched in January 2018, stage 1 now complete with first residents. • A total yield of more than 800 dwellings with a GDV of approx. $200 million • High density mixed use development in Tonsley Innovation
Slide 25: Strathpine - QLD
STRATHPINE - QLD • Amenity includes 6 ha of parks and open space, close • A 16ha site located 24 km north of the Brisbane CBD For personal use only proximity to Strathpine regional shopping centre and within 800 metres of train station • 182 dwellings comprising 106 detached lots and 76 townhouses •
Slide 26: Pier Street - WA
PIER STREET - WA Inner city location approx. 500m east of Perth CBD, adjacent to For personal use only • Northbridge • Joint Venture Structure − WA State Government (landowner) − Peet (equity partner, development manager) • 27 level building comprising of 186 apartments • Planning approval received
Slide 27: Market outlook
MARKET OUTLOOK FOCUSED ON POSITIONING FOR AN IMPROVING MARKET THROUGH A CONSERVATIVE APPROACH TO PROJECT DELIVERY AND IDENTIFYING GROWTH OPPORTUNITIES For personal use only • Steady employment growth, continued low interest rates, income tax cuts and significant Government infrastructure investment
Slide 28: Disclaimer
DISCLAIMER For personal use only While every effort is made to provide accurate and complete information, Peet does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. This presentation contains forward-looking sta