Australian Unity Office Fund · ASX:AOF
Australian Unity Office Fund — FY2022 Earnings Presentation
25 slides from Australian Unity Office Fund's earnings presentation, Aug 29, 2022
Slide 1: Australian Unity Office Fund 2022 Full Year Results
30 Pirie Street, Adelaide, artists impression, subject to change Australian Unity Office Fund 2022 Full Year Results August 2022 (ASX: AOF) Webcast | Teleconference 1
Slide 2: Acknowledgement of Country
Acknowledgement of Country We acknowledge the traditional owners of the lands and waters within Australia and recognise the important connection to Country that Aboriginal and Torres Strait Islander People have. Australian Unity 2
Slide 3: AOF Overview
5 Eden Park Drive, Macquarie Park A quality, metropolitan and CBD portfolio offering affordable accommodation with amenity, accessibility and repositioning opportunities Agenda AOF Overview 1. Portfolio Highlights 2. Financial Results 3. Portfolio Overview 4. Outlook and Guidance 5. Appendices 3
Slide 4: Portfolio Highlights
Portfolio Highlights 1 2 3 18.8 cpu FFO1 15.4%, 14,100sqm3 84.4% occupancy2 Top end of guidance leased 4 5 Distributions Refined Strategy 15.2cpu 1. For the year ended 30 June 2022. FFO means Directors’ assessment of Funds From Operations 2. By net lettable area, as at 30 June 2022 3. ~14,100 sqm le
Slide 5: Portfolio focus
Portfolio focus Refined Strategy 1. Owning Australian real estate assets in metropolitan and CBD markets 2. Generating income by delivering and maintaining sustainable occupancy levels 3. Divesting assets to make capital available 4. As appropriate, recycle available capital to refurbish and reposit
Slide 6: Financial Results
Financial Results Australian Unity 6 10 Valentine Ave, Parramatta artists impression, subject to change
Slide 7: Financial Results 2022
Financial Results 2022 FFO above guidance Above guidance of 18.0cpu – 18.5cpu FFO1 Per Unit 18.8cpu +0.1cpu increase from FY21 driven by fixed rent reviews Distribution Per Unit 15.2cpu In line with guidance and +0.2cpu increase from FY21 Profit attributable to unitholders -$48.4m Driven by revaluat
Slide 8: Property Portfolio
Property Portfolio1 Independent Change in Change in Capitalisation Property Valuation valuation2 capitalisation rate (%) All properties were independently revalued at 30 ($’m) ($’m) rate (%)3 June 2021 and 30 June 2022; except 96 York Street which was valued at 31 March 2022 2-10 Valentine Avenue, P
Slide 9: Capital Management
Capital Management1 Debt book refinanced to March 2025 On 31 March 2022 AOF refinanced $150 million of its debt book with its existing lenders Gearing2 30.4% The refinancing was on a similar line fee and margin to the prior facility All tranches of AOF $250 million debt facility now expire on 17 Mar
Slide 10: Portfolio Strategic Update
2- 10 Valentine Avenue, Parramatta, artists impression subject to change 10 Valentine Ave, artist’s impression subject to change 10 Valentine Avenue, Parramatta Portfolio Strategic Portfolio Update Review Property Overview Portfolio Australian Unity 10
Slide 11: Active management driving leasing success
Active management driving leasing success 5 Eden Park Drive • Leasing success continues with 2,934sqm of lettable area leased in financial year 2022, increasing occupancy to 100% (96.3% at 30 June 2021); with the independent valuation increasing by +$6.5 million during financial year 2022 • A 6-year
Slide 12: Refurbishment and Repositioning Opportunities
Refurbishment and Repositioning Opportunities 10 Valentine Ave, Parramatta The opportunity involves a new lobby with contemporary end of trip & wellness facilities along with refurbished base building The objective is to create a workplace that is attractive to tenants, delivers contemporary and fle
Slide 13: Asset sales
Asset sales Three asset sales present an opportunity to recycle capital and progress refurbishment strategies 64 Northbourne Avenue • B-grade property comprising 6,375sq m of fully-leased office space over six levels of office accommodation on an approximately 1,500sqm site • Located on a prominent
Slide 14: Outlook and Guidance
150 Charlotte Street, Brisbane, artists impression subject to site amalgamation and change 468 St Kilda Road, Melbourne, Outlook and Strategic Outlook and Guidance Review Guidance Australian Unity 14
Slide 15: Outlook and Guidance
Outlook and Guidance Guidance Distribution guidance1 of 2.50cpu for the September 2022 quarter. Distribution guidance will be provided on a quarterly basis until further notice FFO guidance is not being provided at this time Outlook Maintain active management to deliver leasing and occupancy outcome
Slide 16: Appendices
Appendices Australian Unity 150 Charlotte Street, Brisbane, artist’s impression, subject to change
Slide 17: Income Statement
Income Statement $’000 2022 2021 Change Note i . Reduction in rental income, property expenses and borrowing costs driven by the sale of 241 Adelaide Rental income1 52,843 56,822 (3,979) i Street, Brisbane and 32 Phillip Street, Parramatta Property expenses2 (12,881) (16,379) 3,498 i Straight lining
Slide 18: Balance Sheet
Balance Sheet $’000 30 June 2022 30 June 2021 Change Note Assets i. Interest rate swaps were “in the money” at 30 June Cash and cash equivalents 3,261 8,935 (5,674) 2022 but “out of the money” 30 June 2021 Receivables 1,357 592 765 Other Assets 873 999 (126) ii. Reduction in Investment properties re
Slide 19: Property details
Property details1 Independent Capitalisation NLA2 Value WALE3 Occupancy Market Property State Valuation ($’m) rate (%) (sqm) $/sqm (years) (by NLA) Parramatta 2-10 Valentine Ave, Parramatta4 NSW 98.00 5.50%5 16,020 6,117 0.4 18.2% Brisbane CBD 150 Charlotte St, Brisbane QLD 77.10 6.25% 11,081 6,958
Slide 20: Property Portfolio
Property Portfolio As at 30 June 2022 Key Portfolio Metrics Lease expiry profile1 Telstra Number of properties 8 30 Pirie St 35% 23.7% Occupancy1 84.4% 30% Boeing 25% Portfolio Value $539.82m 150 Charlotte St 20% 9.3% Weighted Average Capitalisation Rate 5.69% 15% 10% WALE2 2.5 years 15.6% 13.4% 5%
Slide 21: Environmental, Social & Governance Framework
Environmental, Social & Governance Framework Transparent Environmental Collaborate with Invest in long term Impacts Tenants sustainability NABERS – Water and Repositioning Environmental Energy Efficiency Focus on green ESG measures and strategies Monitoring initiatives, solar guidance to lease imple
Slide 22: AOF – Portfolio Environmental Performance 2022
AOF – Portfolio Environmental Performance 2022 AOF - Year 1 Participation NABERS Sustainable Portfolio’s Index Result 2022 SPI 2022 ENERGY PORTFOLIO RANK – SPI 2022 WATER PORTFOLIO RANK – 13th In Australia 8th in Australia Note: All energy ratings are without Green Power. Number of assets eligible f
Slide 23: Sustainability
Sustainability Asset Lifecycle – driving sustainability enhancements 10 Valentine Ave, Parramatta Refurbish, Redevelop and Recycle Refurbish, Redevelop and Recycle • Circular Economy: • Furniture left behind by the prior tenant at lease expiry: • Design out waste and pollution • Over 100 items repur
Slide 24: Important notice and disclaimer
Important notice and disclaimer The information provided in this presentation is issued by Australian Unity Investment Real Estate Limited ABN 86 606 414 368 AFSL 477434 (AUIREL), as responsible entity for the Australian Unity Office Fund (AOF). AUIREL is owned equally by subsidiaries of Australian
Slide 25: Australian Unity Office Fund
Australian] Real Wellbeing
Australian Unity Office Fund — FY2022 Earnings Presentation on 6ix