Finbar Group Limited · ASX:FRI
Finbar — Shareholder Meeting (October 2016)
58 slides from Finbar's shareholder meeting presentation, Oct 25, 2016
Slide 1: FY16 Annual Results Summary & Development Update
For personal use only 25 October 2016 FY16 Annual Results Summary & Development Update 1
Slide 2: Net Profit
Net Profit For personal use only $21.2m operating profit. NPAT $8.1m net profit. 40 68% reduction of NPAT in FY16 35 after investment property impairments totalling $13 30 million. 25 20 consecutive year s of 20 profitability. $m 15 10 5 0 FY97 FY95 FY96 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY
Slide 3: Operating Profits and Revaluations
Operating Profits and Revaluations For personal use only $50 $ Millions $40 $30 $20 $10 $- FY10 FY11 FY12 FY13 FY14 FY15 FY16 -$10 -$20 Operating Profit Revaluations 3
Slide 4: Earnings Per Share & Dividends
Earnings Per Share & Dividends For personal use only Ful ly fr anked dividend of $0.07 18 per share attributable to the year. 16 14th consecutive year of 14 dividends. 12 10 Retained 8 Final Cents per share 6 Interim 4 2 0 4
Slide 5: Cash Position
Cash Position For personal use only CASH Strong year end cash position of $28m. 80 70 Well positioned to fund working capital requirements and equity 60 contributions for project commencements. 50 No debt on residual stock with 40 settlement cashflow to bolster $m working capital for redeploym
Slide 6: Source of Earnings FY16
Source of Earnings FY16 For personal use only Core business of property development generated 90% of earnings. Nor wood, Ar bor Nor th, Unison on Tenth and Linq projects were largest contributors. 6% contribution from rental income. 6
Slide 7: Segment Contributions FY16
Segment Contributions FY16 For personal use only Development Rental Property Other Revaluations Admin PROFIT Activity 40.00 35.00 30.00 25.00 $m 20.00 15.00 Positive Impact 10.00 Negative Impact 5.00 Profit 0.00 7
Slide 8: Corporate Administration Costs
Corporate Administration Costs For personal use only Administration costs overhead as Net Equity ($m) Admin Costs as % of Net percentage of net equity is 2.9%. Administration Costs Equity Outsourcing model ensures 300 5% company is scal able and efficient. 250 4% 200 Small close team of 19 FTE
Slide 9: Project Return on Cost & Sales
Project Return on Cost & Sales For personal use only Average Return On Completed Development Projects Retur n on cost consistently at or 45 above internal target of 25%. 8 year average return on cost 31.2% 40 Return on sales approximately 20%. 35 30 25% targeted return on cost 25 20 15 8 year av
Slide 10: Current Project Debt & Coverage
Current Project Debt & Coverage For personal use only Debt & Pre-sales Coverage 225 $128m in finance facilities were 200 repaid in FY16 & FY17 YTD from $128m settlements on completed 175 projects. 150 125 No debt on residual stock. 100 REPAID REPAID REPAID REPAID REPAID 75 Strong presales cove
Slide 11: Income Producing Investment Property
For personal use only Income Producing Investment Property 11
Slide 12: Investment Property
Investment Property For personal use only FAIRLANES PELAGO 181 Adelaide Terrace East Perth Sharpe Avenue Karratha 7,586 sqm of office 101 apartments & 21 building commercial lots Leased to Downer, Leased to small Broadspectrum, business & Finbar’s corporate predominantly office, & smaller of
Slide 13: Investment Property Leasing
Investment Property Leasing For personal use only 9,000 Fairlanes 94% leased. 8,000 Pelago Commercial 64% leased. 7,000 Pelago Residential 69% leased. 6,000 Sqm 5,000 NLA 4,000 3,000 2,000 1,000 0 Fairlanes Office Pelago Commercial Pelago Residential Leased Vacant 13
Slide 14: Investment Property Values & Gearing Profile
Investment Property Values & Gearing Profile For personal use only Value & Gearing on Investment Assets Loan to Value Ratio across investment property is 47.7% $120 Facilities with Australian Major Equity Banks (CBA & NAB). $100 $80 Debt Millions $60 47.7% LVR $40 $20 $0 Fairlanes Pelago TOTAL 1
Slide 15: Development Activity Update
For personal use only Development Activity Update 15
Slide 16: FY16 Progress Highlights
FY16 Progress Highlights For personal use only Completions Approval s Norwood $34.1m DA Reva~$51.6m Arbor North $71.6m DA Chase~$74.9m Unison on Tenth $79.6m DA Vue Tower~$151.8m Linq $62.6m DA The Point~$90m DA Aire~110m Acquisitions & JVs DA Anchorage~77.3m JV 43-45 McGregor
Slide 17: FY17 Year to Date Progress Highlights
FY17 Year to Date Progress Highlights For personal use only Acquisitions & JVs Lot 1000, Rivervale~$65m 910 Canning Hwy, Applecross~$350m Approval s Arbor South, Rivervale~$55.2m 17
Slide 18: Development Update: Completed Projects with Stock for Sale
For personal use only Development Update Completed Projects with Stock for Sale 18
Slide 19: Ecco, Lord Street, Perth
Ecco 262 Lord Street, Perth For personal use only Project: Ecco consists of 90 one, two & three bedroom apartments plus 8 commercial lots with an average price of $526,429. Status: Construction Completed. Owner ship: 50% JV with land owner. Val ue: ~$51.6 million. Completion: FY14 Sales: V
Slide 20: Spring View Towers, Homelea Court, Rivervale
Spring View Towers 3 Homelea Court, Rivervale For personal use only Project: Spring View Towers consists of 188 apartments in two residential towers (8 & 16 levels respectively). $529,255 average price. Status: Construction Completed. Owner ship: 50% JV through SPV. Val ue: ~$99.5 million. C
Slide 21: Subi Strand, Hood Street, Subiaco
Subi Strand 28 Hood Street, Subiaco For personal use only Project: Subi Strand consists of 245 one, two and three bedroom apartments plus 19 ground floor commercial lots. $611,742 average price. Status: Construction Completed. Owner ship: 50% JV through SPV. Val ue: ~$161.5 million. Completi
Slide 22: Norwood, Lord Street, Perth
Norwood 280 Lord Street, Perth For personal use only Project: Norwood consists of 59 boutique apartments plus 4 commercial lots in a six level building. Average price $541,269. Status: Construction Completed. Owner ship: 50% JV with land owner. Val ue: ~$34.1 million. Completion: FY16 Sale
Slide 23: Arbor North, Rowe Avenue, Rivervale
Arbor North 1 Rowe Avenue, Rivervale For personal use only Project: Arbor North consists of 154 one and two bedroom apartments with an average price of $464,935. Status: Construction Completed. Owner ship: 50% JV through SPV. Val ue: ~$71.6 million. Completion: FY16 Sales: Under Val ue ($m
Slide 24: Unison on Tenth, Tenth Avenue, Maylands
Unison on Tenth 2 Tenth Avenue, Maylands For personal use only Project: Unison on Tenth comprises 167 one, two and three bed apartments plus 2 commercial lots. Average price $471,006. Status: Construction Completed. Owner ship: 50% JV with land owner. Val ue: ~$79.6 million. Completion: FY16
Slide 25: Linq, James Street, Northbridge
Linq 269 James Street, Northbridge For personal use only Project: Linq comprises 112 one and two bedroom apartments plus 4 commercial lots. The average price is $539,655. Status: Construction Completed. Owner ship: Wholly owned through subsidiary. Val ue: ~$62.6m. Completion: FY16 Sales: Val
Slide 26: Development Update: Projects Currently Under Construction
For personal use only Development Update Projects Currently Under Construction 26
Slide 27: Concerto, Adelaide Terrace, East Perth
Concerto 189 Adelaide Terrace, East Perth For personal use only Project: Concerto will consist of 226 studio, one, two, and three bedroom apartments plus 1 commercial unit. Once complete Concerto will be East Perth’s tallest residential building at 38 stories. Average price $875,771. Status: Under
Slide 28: Motive, Railway Parade, West Leederville
Motive 172 Railway Parade, West Leederville For personal use only Project: Motive consists of 143 one and two bedroom apartments with an average price of $565,035. Status: Under Construction. Owner ship: 50% JV with land owner. Val ue: ~$80.8 million. Est. Completion: FY17 Sales: Val ue ($m)
Slide 29: Aurelia, Mill Point Road, South Perth
Aurelia 96 Mill Point Road, South Perth For personal use only Project: Aurelia will consist of 118 one, two and three bedroom apartments plus 6 commercial units and 14 office spaces. Average price $992,029. Status: Under Construction Owner ship: 50% owned JV with land owner Val ue: ~$136.9 mil
Slide 30: Development Update: Projects Being Marketed for Pre-Sale
For personal use only Development Update Projects Currently Being Marketed for Pre-Sale 30
Slide 31: Aire, West Perth
Aire West Perth 647-659 Murray Street, West Perth For personal use only Project: Aire West Perth will consist of 178 one, two and three bedroom apartments plus 64 serviced apartments as well as 2 ground floor commercial units. Approximate average price of $450,820. Status: Released to market Own
Slide 32: Civic Heart, Mends Street, South Perth
Civic Heart 1 Mends Street, South Perth For personal use only Project: The Civic Heart will consist of 294 one, two, three bed apartments plus 19 commercial units that consists of a supermarket, commercial grade gym, medical suites, child care facilities, retail and office spaces. Average price $1.2
Slide 33: Sunago, Waverly Street, Dianella
Sunago 61 Waverly Street, Dianella For personal use only Project: Sunago will consist of 163 one and two bedroom apartments. Approximate average price of $434,356. Status: Released to market Owner ship: 50% owned JV through SPV. Val ue: ~ $70.8 million. Est. Completion: FY19 Sales: Val ue
Slide 34: Chase, Great Eastern Highway, Belmont
Chase 239 Great Eastern Highway, Belmont For personal use only Project: Chase will consist of 194 apartments plus 2 ground floor commercial lots to be constructed on 5,692m 2 development site in Belmont. Approximate average price of $382,143. Status: Released to market Ownership: Wholly owned th
Slide 35: Vue Tower, Adelaide Terrace, East Perth
Vue Tower 63 Adelaide Terrace, East Perth For personal use only Project: Vue Tower will consist of 247 one, two and 3 bedroom apartments plus 3 commercial units and 2 office units. Approximate price of $601,984. Status: Release to market. Owner ship: 50% JV with landowner Val ue: ~$151.8 milli
Slide 36: Development Update: Approvals Received
For personal use only Development Update Approvals Received 36
Slide 37: Unison on Kennedy, Kennedy Street, Maylands
Unison on Kennedy 1 Kennedy Street, Maylands For personal use only Project: Unison on Kennedy is the second stage to the Unison development. Unison on Kennedy will consist of 180 one, two and three bedroom apartments plus 2 commercial lots. Status: Development approval recieved Ownership: 50% JV
Slide 38: Arbor South, Rivervale
Arbor South Lots 1002 & 1003 Rowe Avenue, Rivervale For personal use only Project: Arbor South will consist of approximately 132 apartments to be constructed on the balance of 286 unit development site. To comprise 1 & 2 bedroom apartments, in a 16 storey building. Status: Development approval rec
Slide 39: Reva, 5-7 Harper Terrace, South Perth
REVA 5-7 Harper Terrace, South Perth For personal use only Project: Reva will consist of 42 luxury apartments plus 18 commercial lots of ground floor retail and level one office space. Status: Development approval received Owner ship: Wholly owned through subsidiary. Val ue: ~$51.6 million.
Slide 40: The Point, Rowe Avenue, Rivervale
The Point 31 Rowe Avenue, Rivervale For personal use only Project: The Point will consist of 183 one, two and three bedroom apartments plus 9 ground floor commercial units to be constructed on 4,000m 2 development site situated at the main entrance to the Springs precinct. Status: Development appr
Slide 41: Springs Office, Rivervale
Springs Office Lot 1020 Rowe Avenue Rivervale For personal use only Project: Springs Office will consist of a 6 level office building comprising 6,250m 2 NLA. 86 residential apartments option. Status: Development approval received Owner ship: 50% JV through SPV. Val ue: ~$37.6 million. Est.
Slide 42: Anchorage, Sutherland Street, Port Hedland
Anchorage Lot 452 Sutherland Street, Port Hedland For personal use only Project: The proposed redevelopment of 3.15ha site into approximately 700 apartments plus ground floor commercial lots over four stages. Status: Development approval received. Land purchase conditions under re-negotiation wi
Slide 43: Development Update: In Early Stages of Planning & Design
For personal use only Development Update In Early Stages of Planning & Design 43
Slide 44: Palmyra, 43-45 McGregor Road, Palmyra
Palmyra Stage 43-45 McGregor Road, Palmyra For personal use only Project: Palmyra will consist of approximately 258 one, two, & three bed apartments in a low-rise, medium density development overt two stages. Located on a 2.66 hectare site. Status: In planning Owner ship: 50% JV with landowner V
Slide 45: Homelea Court, Rivervale
2 Homelea Court Cnr Rowe Avenue and Homelea Court, Rivervale For personal use only Project: 2 Homelea Court will consist of approximately 185 apartments within a 10 level building. The site is comprised of four vacant blocks totaling 3,770 square metres. Status: In Planning. Owner ship: Wholly o
Slide 46: Lot 1000 Riversdale Road, Rivervale
Lot 1000 32 Riversdale Road, Rivervale For personal use only Project: Lot 1000 comprises 4,069 square metres of absolute waterfront land with expansive views of the Swan River, Stadium Precinct, and Perth CBD. Will consist of approximately 150 residential apartments. Status: In Planning. Owner s
Slide 47: Canning Hwy, Applecross
Canning Hwy 910 Canning Hwy, Applecross For personal use only Project: Canning Hwy will consist of approximately 440 one, two, three bed apartments, and ground floor commercial lots that will be developed over three stages. Status: In planning. Owner ship: 50% JV with landowner Val ue: ~$350 mil
Slide 48: Harmony, Adelaide Terrace, East Perth
Harmony 187 Adelaide Terrace, East Perth For personal use only Project: Exploring short term accommodation, student accommodation, and hotel concepts. Status: In planning. Owner ship: 50% JV with landowner Val ue: ~$40 million. Est. Completion: FY20 Sales: Val ue ($m) Lots Future Future Rele
Slide 49: Sales Activity
For personal use only Sales Activity 49
Slide 50: Residential Sale Contracts Activity
Residential Sale Contracts Activity For personal use only Subi Strand Linq 120 FY16 454 sales worth $318.2 in 52 Mill Pt Concerto Aurelia financial year to date being an Arbor North Unison on average of 1.24 sales / $0.87m 100 Spring View 10th Towers Civic Heart per day average Motive Norwood Tocc
Slide 51: Accrued Presales Total
Accrued Presales Total For personal use only 52 Mill Pt & Subi Strand $600 St Marks & & Toccata Millions Pelago East AU Arbor Linq Spring View North Towers Unison on $500 Ecco Norwood Tenth Knightsgate Adagio $400 Lime $468.1m IN ACCRUED PRE-SALES $300 $200 $100 $- Project Completions & $m Settlemen
Slide 52: Proportion of Finbar FIRB Sales & Foreign Investor Surcharge
Proportion of Finbar FIRB Sales & Foreign Investor Surcharge For personal use only VICTORIA: Additional Duty 7% Absentee Owner Land tax Surcharge 0.5% NEW SOUTH WALES: Additional Duty 4% Absentee Owner Land tax Surcharge 0.75% WESTERN AUSTRALIA: QUEENSLAND: Additional Duty Nil Additional
Slide 53: Proportion of Repeat Buyers
Proportion of Repeat Buyers For personal use only Finbar Loyalty Club Opened October 2015 22% increase in repeat buyers in FY16 53
Slide 54: Completed Stock Remaining (Debt Free)
Completed Stock Remaining (Debt Free) For personal use only $100 Linq Millions Unison on $90 Tenth Arbor North $80 Norwood $63m $70 $60 $50 $40 $30 $20 $10 $- Project Completion 54
Slide 55: Off-the-Plan Sales v Completed Sales
Off-the-Plan Sales v Completed Sales For personal use only $70 Millions $60 $50 $40 $30 $20 $10 $- Completed Stock Off-The-Plan 55
Slide 56: Pipeline Estimated Completion Summary
Pipeline Estimated Completion Summary For personal use only Note: Anchorage, Port Hedland not included in this summary 56
Slide 57: Cumulative Units Sold
Cumulative Units Sold For personal use only 10000 9000 4935 units developed to date. 8000 Anticipating to develop and settle 7000 an additional 3676 over next 6000 seven years. 5000 Units 4000 3000 2000 1000 0 96 9798 99 00 01 03 04 05 07 08 09 1011 12 13 14 15 16 17 18 19 20 21 22 23 Year 57
Slide 58: Important Notice
Important Notice For personal use only Some of the information contained in this presentation may contain forward-looking revenue, timeline, and general statements that are subject to various risks, uncertainties, and changes. Forward-looking statements include those containing such words as ‘estima