Glenveagh Properties Plc · EURONEXT:GVR
Glenveagh Properties — FY2017 Earnings Presentation
42 slides from Glenveagh Properties's earnings presentation, March 2018
Slide 1: Delivering on our IPO objectives
Delivering on our IPO objectives Financial Results March 2018 1
Slide 2: Agenda
Agenda 1 Financial and Operating Highlights 2 Group Progress Since IPO 3 Glenveagh Homes Overview 4 Glenveagh Living Overview 5 Our Portfolio And Land Acquisition Pipeline 6 Financial Results 7 Conclusion Appendices I. Homes Case Studies II. Living Case Studies III. Active Construction Sites IV. Ben
Slide 3: Presenting Team
Presenting Team Justin Bickle Co-Founder & CEO Stephen Garvey Co-Founder & COO Michael Rice Chief Financial Officer Conor Murtagh Director, Strategy & IR Glenveagh National Park, Letterkenny Co. Donegal Beach, Greystones, Co. Wicklow - Marina Village 3
Slide 4: 1. Financial and Operating Highlights
1. Financial and Operating Highlights 4
Slide 5: Financial and Operating Highlights: Results and Announcement Summary
Financial and Operating Highlights Results and Announcement Summary Financial Highlights Operating Highlights €106m of new site €284m3 total capital Development Portfolio 10 active Homes acquisitions deployed since IPO Growing diversified land portfolio of construction sites The deployment of anothe
Slide 6: Delivering on our IPO objectives: overview
Financial and Operating Highlights Delivering on our IPO objectives: overview Deploying Capital Scaling Operations Advancing Living Building the Team New site acquisitions and partnership pipeline • Active on seven sites and • Building rental communities • Sector-leading executive further three site
Slide 7: 2. Group Progress Since IPO
Progress Since IPO \N Glenveagh Marina Village
Slide 8: Building a sustainable business across the cycle
Group Progress Since IPO Building a sustainable business across the cycle • Efficient capital allocation • Reduced risk and cyclicality • Disciplined returns focus • Increased resilience • Glenveagh Homes develops and builds starter, mid- • Designing, developing and delivering residential size, high
Slide 9: Experienced central support for both business units
Group Progress Since IPO Experienced central support for both business units John Mulcahy Co-Founder & Executive Chairman Justin Bickle Co-Founder & CEO 148 employees today vs 85 at IPO Central Strategic Support Functions Finance Michael Rice – CFO Stephen Garvey Land & Portfolio Mgmt. Shane Scully
Slide 10: 3. Glenveagh Homes Overview
3. Glenveagh Homes Overview 10
Slide 11: Glenveagh Homes - at a glance
Glenveagh Homes Glenveagh Homes - at a glance Unit Delivery 2018 / 2019 Unit Pipeline 2017 Unit Delivery Target Acquisition Pipeline 193 250 / 725 c.€30m €440m Exchanged & Targeted exchanged & In exclusivity2 Under active completed units1 completed units consideration2 Current Homes Portfolio 3,020
Slide 12: Building units and scaling construction operations
Glenveagh Homes Building units and scaling construction operations 6 Greater Dublin Area Active construction projects in 2018 are capable of delivering our unit targets 2 Site cost(1) NDV(2) Potential # Site 5 (€m) (€m) unit delivery Current live sites Total 2018 2019 2020 1 Glenveagh Marina Village
Slide 13: Future development sites and strategic land we own
Glenveagh Homes Future development sites and strategic land we own Diversified and attractive portfolio for future construction and active asset management Greater Dublin Area Site cost(1) Remaining Potential Site cost(1) # Site # Site Zoning (€m) NDV2 (€m) units3 (€m) Future Homes Sites Strategic L
Slide 14: Capitalising on our scale advantages
Glenveagh Homes Capitalising on our scale advantages Glenveagh’s scale and experience across a range of construction methods has facilitated the introduction of best in class design and construction solutions Design & Plot Entrance, Boundary Procurement Construction Utilisation and Landscaping Maxim
Slide 15: 4. Glenveagh Living Overview
4. Glenveagh Living Overview I considered replacing with a Living picture. Not sure there is a suitable one. It also breaks with the theme of the presentation 15
Slide 16: Glenveagh Living – at a glance
Glenveagh Living Glenveagh Living – at a glance Transactions Completed – See Core Competencies Our Partners Appendix II East Road, The Square, and Gateway expected to deliver Deal Structuring Institutional Investors over 1,200 units subject to planning Social and Affordable Master Planning and Desig
Slide 17: 5. Our Portfolio and Land Acquisition Pipeline
5. Our Portfolio and Land Acquisition Pipeline 17
Slide 18: Deploying capital and growing development portfolio
Our Portfolio And Land Acquisition Pipeline Deploying capital and growing development portfolio Increasing exposure to attractive Further capital deployment €284m of IPO capital deployed1 multi-year development sites opportunities of c.€470m2 Acquiring sites at attractive rates Increasing average si
Slide 19: Attractive pipeline of further opportunities
Our Portfolio And Land Acquisition Pipeline Attractive pipeline of further opportunities Addressable €5bn land opportunity over next five years Private Equity1 NAMA1 Religious orders1 State owned1 100+ €800m+ 17k 20 €1bn+ 20k 30 €500m+ 6.5k 800 €2.5bn+ 50k Estimated no. Estimated Potential no. Estim
Slide 20: Summary of private equity land exposures
Our Portfolio And Land Acquisition Pipeline Summary of private equity land exposures1 Firm No. of Units1 3,000 2,800 2,800 • The Irish market saw significant investment by distressed and private equity 2,700 firms as the property market collapsed 2,500 • A number of these firms have exited their exp
Slide 21: 6. Financial Results
6. Financial Results Glenveagh Holsteiner Park
Slide 22: Income statement
Financial Results Income statement Income Statement for period ended 31 December 2017 Commentary Before Exceptional Exceptional • Revenue recognised in the period of €1.4m relates to asset advisory and Items Items Total construction services provided on behalf of TIO €'000 €'000 €'000 Revenue 1,425
Slide 23: Balance sheet
Financial Results Balance sheet Balance Sheet at 31 December 2017 Commentary 31-Dec-17 • Successful completion of the Company’s IPO on 13 October 2017 raised €'000 gross proceeds of €550m Property, plant and equipment 1,476 Intangible assets 75 • Inventory of €228m reflects the significant investmen
Slide 24: Cash flow statement
Financial Results Cash flow statement Cash Flow Statement for period ended 31 December 2017 Commentary • Net cash inflow of €530m from our successful IPO €'000 EBITDA (before exceptional items) (3,514) • Cash outflow of €175m relating to land acquisition and construction activity to support the sign
Slide 25: Financial and operational targets
Financial Results Financial and operational targets ASP targets, net of VAT FY18E: 310-340 (€’k)1 FY19E: 340-390 FY20E: 340-390 Long-term target: 2,000+ Gross margin Long-term target of 20%+ 2022: 1,750 Central Costs Central costs, including one-off costs, of c.€16m2 and reaching c.5% of revenue in
Slide 26: 7. Conclusion
7. Conclusion 26
Slide 27: Strategic objectives at IPO
Conclusion Strategic objectives at IPO ✓ Assemble quality land bank capable of fulfilling business plan Continue to scale the Group’s housing delivery operations consistent ✓ with business plan and targets ✓ Strengthen reputation for product and delivery innovation and create residential communities
Slide 28: Delivering on our IPO objectives
Conclusion Delivering on our IPO objectives Deploying c.€284m of IPO capital deployed across Homes Capital and Living - Total unit pipeline now 7,340 Scaling On course to have over 700 units under Operations construction during 2018 Advancing 1,200+ unit Living pipeline in place Living subject to pl
Slide 29: Appendix I - Homes Case Studies
Appendix I - Homes Case Studies 29
Slide 30: Homes Case Studies: Project Quattro
Homes Case Studies Project Quattro Key Site statistics Donabate (2 sites) Dunboyne Stamullen €85m1 off-market transaction at attractive valuation (c.€59k1 per unit) Size 45 acres (2 sites) 54 acres 30 acres Residential and open Zoning Residential Residential space Shovel ready sites will contribute
Slide 31: Homes Case Studies: Taylor Hill, Balbriggan
Homes Case Studies Taylor Hill, Balbriggan Taylor Hill – Pre-sale Marketing Suite Phase 1 Completion Q4‘19 • Original site part of TIO portfolio 135 Units • Neighbouring site acquisition completed by Glenveagh as part of IPO (Project Castle) which resulted in ― a 352% increase in units Adapted a por
Slide 32: Appendix II - Living Case Studies
Appendix II - Living Case Studies 32
Slide 33: Building rental communities: East Road
Living Case Studies Building rental communities: East Road Dublin’s 450 + Units North Docks Subject to FPP 2 hectare site, €42m acquisition East Road Rental community opportunity with significant institutional investor interest 450+ apartment units subject to planning Located in close proximity to t
Slide 34: Building rental communities: Project Town
Living Case Studies Building rental communities: Project Town Strategic Relationship 750 + Units Agreement Subject to FPP • Sigma have an unrivalled Strategic partnership with Sigma Retail Partners and TIO retail asset management track record in the Irish market Residential development rights to lan
Slide 35: Appendix III – Active Construction Sites
Appendix III – Active Construction Sites 35
Slide 36: Active Construction Sites
Glenveagh Homes Active Construction Sites Glenveagh Cois Glaisín Glenveagh Marina Village Glenveagh Holsteiner Park Glenveagh Taylor Hill 274 Unit Capacity 276 Unit Capacity 15 Unit Capacity 610 Unit Capacity Currently 68 units under construction. Strong The development which includes a 14 acre A de
Slide 37: Active Construction Sites
Glenveagh Homes Active Construction Sites Glenveagh Herbert Hill Glenveagh Cluain Adain Glenveagh Proby Place 90 Unit Capacity 246 Unit Capacity 23 Unit Capacity This development consists of 87 apartments Site works commenced on Cluain Adain in Q1 A development consisting on new houses and and 3 hou
Slide 38: Appendix IV - Benefits of Complementary Business Units
Appendix IV- Benefits of Complementary Business Units 38
Slide 39: Homes and Living - benefits of combined strategy
Benefits of Two Complementary Business Units Homes and Living - benefits of combined strategy Access to more opportunities Delivery flexibility 1 2 • Unlocks more capital deployment opportunities • Optionality throughout site acquisition, planning, design and pre-construction phases • Enables the Gr
Slide 40: Appendix V - Executive Committee Biographies
Appendix V - Executive Committee Biographies 40
Slide 41: Experienced Executive Committee in Place
Executive Committee Biographies Experienced Executive Committee in Place John Mulcahy - Co-Founder & Executive Chairman Wesley Rothwell - Chief Commercial Officer John is a Chartered Surveyor who has over 40 years’ experience in the Irish real estate sector. Wesley is a chartered surveyor and joined
Slide 42: Disclaimer
Disclaimer This presentation has been prepared by Glenveagh Properties PLC (the “Company” or “Glenveagh”) for information purposes only. This presentation has been prepared in good faith but the information contained in it has not been subject to a verification exercise and does not purport to be co