Region Group · ASX:RGN
Region — Investor Presentation (October 2018)
23 slides from Region's investor presentation, Oct 3, 2018
Slide 1: Acquisition and Capital Raising
SCA PROPERTY GROUP Acquisition and Capital Raising 3 October 2018
Slide 2: Transaction Overview
TRANSACTION OVERVIEW • SCA Property Group (SCP) has entered into an agreement to acquire a portfolio of 101 convenience-based retail centres (Acquisition) for a total consideration of $573 million2 – Purchase price reflects an initial yield of 7.47% on a fully-let basis Acquisitions • The Acquisitio
Slide 3: Investment Rationale
INVESTMENT RATIONALE Consistent with SCP’s • Acquisition portfolio consists of 101 convenience-based retail centres consistent with SCP’s existing portfolio 1 core strategy • All assets in the portfolio are anchored by Woolworths or Wesfarmers/Coles owned tenants • Purchase price represents an initi
Slide 4: Summary of Financial Impact
SUMMARY OF FINANCIAL IMPACT Acquisition delivers a compelling financial outcome for SCP unitholders Earnings Impact Pro-forma Balance Sheet Accretive to Over 5% accretive1 Increase in $3.1bn, up by 23%3 FFO Annualised pro-forma FY19 FFO per unit portfolio scale Total portfolio value Increase in 16.2
Slide 5: Acquisition Portfolio Overview
ACQUISITION PORTFOLIO OVERVIEW Attractive purchase price with an initial fully-let yield of 7.47% Asset Details Operational Metrics Anchor Tenants Valuation Metrics Centre Ownership GLA Occupancy Anchor Tenants Anchor Purchase Price Implied Fully-Let Asset State Type (%) (sqm) (%) % of Gross Rent Te
Slide 6: Portfolio Impact
PORTFOLIO IMPACT Acquisition portfolio is consistent with SCP’s core strategy of focusing on non-discretionary retail segments Key Portfolio Statistics SCP Pre1 SCP Post Tenants by Category (by gross rent)1,2 SCP Pre1 Acquisition SCP Post Woolworths Woolworths 32% 29% Properties 74 10 84 Specialties
Slide 7: Value Creation Opportunities
VALUE CREATION OPPORTUNITIES SCP has a proven track record of creating value for unitholders through an active asset management approach • SCP management has delivered compelling returns for unitholders since listing in December 2012: – FFO per unit CAGR of 5.4%1 and Distributions per unit CAGR of 6
Slide 8: Transaction Funding
TRANSACTION FUNDING Sources and Uses of Funds1 Sources of Funds $m • The Acquisition and associated transaction costs will be funded by a $259 million Placement of SCP units with the balance of consideration funded through a new debt facility Equity Raise – Institutional Placement 259 • Any proceeds
Slide 9: Placement and UPP Overview
PLACEMENT AND UPP OVERVIEW • Fully underwritten Placement to raise 15% of total units outstanding (113.1 million units to be issued) Structure • Placement price to be determined via a variable price bookbuild from an underwritten floor price of $2.29 per stapled unit, representing a 3.4% discount to
Slide 10: Timetable
TIMETABLE1 Event Date Record date for UPP 7:00pm Tuesday, 2 October 2018 Trading halt and announcement of equity raising Wednesday, 3 October 2018 Institutional Placement bookbuild Wednesday, 3 October 2018 Announcement of results of Placement and trading halt lifted Thursday, 4 October 2018 Settlem
Slide 11: Appendix
SGA Property Group APPENDIX
Slide 12: Balance Sheet Pro-Forma
BALANCE SHEET PRO-FORMA $m 30 June 2018 Adjustments1 Pro-forma Acquisitions and Pro-forma Placement2 Cash 3.7 - 3.7 - 3.7 Assets held for sale 57.9 (57.9) - - - Investment properties 2,453.8 75.2 2,529.0 573.0 3,102.0 Investment available for sale 83.4 - 83.4 (83.4) - Other assets 105.2 9.2 114.4 -
Slide 13: FY19 FFO per Unit Guidance (cpu)
FY19 FFO PER UNIT GUIDANCE (CPU) Reduction of distribution income as a result of Increase in weighted average units CQR stake sales (5 million units in 1H19 and on issue from 754.5 million to the remainder in 2H19) 852.2 million as a result of equity raised to fund the Acquisition 3.91 (0.72) (0.46)
Slide 14: Asset Description – WA
ASSET DESCRIPTION – WA Warnbro Centre Currambine Central1 • Convenience centre anchored by Coles and Woolworths supermarkets and a Big W • Convenience shopping, dining and entertainment experience offering the only cinemas DDS. The centre has ample on grade parking providing easy access for the loca
Slide 15: Asset Description – WA (Cont'd)
ASSET DESCRIPTION – WA (CONT’D) Stirlings Central Kalamunda Central • Located in the centre of Kalamunda, the neighbourhood centre provides the community • Well located neighbourhood centre in the heart of Geraldton CBD with all its food and service needs Description • Key regional economy with Gera
Slide 16: Asset Description – VIC
ASSET DESCRIPTION – VIC Bentons Square The Gateway • Community hub with a strong food, service and convenience tenancy mix anchored by Woolworths & Dan Murphy’s • Convenience and fresh food focused offering the only Coles store within the trade area Description • Securely anchored by Woolworths repr
Slide 17: Asset Description – NSW
ASSET DESCRIPTION – NSW West End Plaza Lavington Square • Convenience and dining destination located within the heart of the Albury CBD and • Woolworths refurbished in December 2015 and has experienced strong growth since offering the only food court within the CBD driven by substantial worker base
Slide 18: Asset Description – QLD
ASSET DESCRIPTION – QLD North Shore Village Oxenford Village • Convenience shopping destination for suburbs between Maroochydore and Coolum, • Located in the active community hub within the Gold Coast growth corridor including Pacific Paradise, Twin Waters, Mujimba and Bli Bli Description • Securely
Slide 19: Key Risks
KEY RISKS General risk factors SCP Property Group’s (“SCP”) business activities are subject to risks, specific both to its investment in property and its operations, as well as of a general nature. Individually, or in combination, these risks may affect the future operating performance of SCP and th
Slide 20: Foreign Jurisdictions Selling Restrictions
FOREIGN JURISDICTIONS SELLING RESTRICTIONS Warranties and agreements By accessing this presentation, you acknowledge that you understand the contents of this disclaimer and that you agree to abide by its terms. This presentation is presented to you on the basis that you are, and you warrant that: •
Slide 21: Foreign Jurisdictions Selling Restrictions (Con't)
FOREIGN JURISDICTIONS SELLING RESTRICTIONS (CON’T) United States This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The Stapled Securities described in this presentation have not been, and will not be, registered under t
Slide 22: Glossary
GLOSSARY Term Definition ASX Australian Securities Exchange DDS Discount Department Store FY19 12 months ending 30 June 2019 Gearing is calculated as Finance debt, net of cash (with USD denominated debt recorded as the hedged AUD amount) divided by total Gearing tangible assets (net of cash and deri
Slide 23: SCA Property Group contact and disclaimer
SCA Property Group Level 5, 50 Pitt Street Sydney NSW 2000 Tel: (02) 8243 4900 Fax: (02) 8243 4999 www.scaproperty.com.au Disclaimer This Presentation has been prepared by Shopping Centres Australasia Property Group RE Limited (ABN 47 158 809 851) (SCPRE) as responsible entity of Shopping Centres Au