Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — Q3 FY2011 Earnings Presentation
20 slides from Cedar Woods Properties's earnings presentation, Apr 14, 2011
Slide 1: Cedar Woods Third Quarter Update
For personal use only Cedar Woods Third Quarter Update 1
Slide 2: Presentation Outline
Presentation Outline For personal use only Highlights & Strategy Results Update Property Portfolio Baldivis Acquisition Outlook 2
Slide 3: Highlights
Highlights For personal use only Record first half NPAT of $24.2m (90% of full year forecast) $30m presales to settle second half Significant reduction in gearing from 36% at the end of FY2010 to 16% at 31 December 2010 Forecast FY2011 NPAT of approximately $28m, up 63% Interim dividend of
Slide 4: Strategy
Strategy For personal use only Focus on residential land development Grow funds management and joint venture opportunities Medium term expansion into other mainland states Explore regional development opportunities Develop commercial and retail components in WLTC while maintaining prudent
Slide 5: Operational Highlights
Operational Highlights For personal use only Strong first half compared to prior year reflects increased settlement program Projects performing well in respective markets Improved operating margins from price growth in Melbourne, and lower costs than budgeted No material ‘mark to market’ adj
Slide 6: Operating Results
For personal use only Operating Results 6
Slide 7: Exceeding Performance Targets
Exceeding Performance Targets For personal use only FY 11 Full year Company target FY 10 Actual forecast EPS growth 10% 52% 79% Return on equity 12% 21% 16% EBIT margin 20% 33% 25% Net debt/equity 20-75% 50% at June 30 37% 7
Slide 8: Compelling Asset Values
Compelling Asset Values For personal use only Major assets acquired before property boom Projects de-risked, under development Review of property portfolio, write down of $0.8m inventory on Waterline project in Mandurah No other impairments Share price significantly understates underlying
Slide 9: Property Portfolio
For personal use only Property Portfolio 9
Slide 10: Strong, Mature Land Bank
Strong, Mature Land Bank For personal use only Portfolio of well located projects Majority of land bank acquired well before property boom and GFC, zoned with approvals Land bank in WA & VIC provides diversity Major projects mature and providing income Diverse product range Share price w
Slide 11: Majority of Land Bank in Income Generating Projects
Majority of Land Bank in Income Generating Projects For personal use only Lots in land bank by project maturity at 1st July 2010 - total 7,000 lots approx 11
Slide 12: Land bank – Geographic & Market Analysis
Land bank – Geographic & Market Analysis For personal use only By State By Product Built Form 12% VIC 39% WA 61% Residential 88% Weighted average age of land bank is 7 years 12
Slide 13: Lot Settlements by State
Lot Settlements by State For personal use only 100’s WA WA WA VIC VIC VIC 2010 2011 F 2012 E 13
Slide 14: Market Conditions
Market Conditions For personal use only Victoria Sound fundamentals, continued State Government stimulus Strong first and second home buyer sales Population growth/lack of rentals (supply/demand fundamentals) Strong price growth, now easing WA Resource projects continuing – new Port Hedlan
Slide 15: New Acquisition: Baldivis Road, Baldivis
New Acquisition Lots 462 & 463 Baldivis Road, Baldivis For personal use only 15
Slide 16: New Acquisition: Baldivis Road, Baldivis
New Acquisition Lots 462 & 463 Baldivis Road, Baldivis For personal use only 16
Slide 17: New Acquisition: Baldivis Road, Baldivis
New Acquisition Lots 462 & 463 Baldivis Road, Baldivis For personal use only Price: $9.1m + GST ($308K/ha) Size: 29.5 ha Attributes: Prominent location on Mundijong Road Rural zoning, cleared, small wetland ERWWTP in 2015 triggers urban Low lying, fill required Noise impacted (freeway) 3
Slide 18: Positive Outlook
Positive Outlook For personal use only Record $28m NPAT forecast for FY11 (up 63% on FY10) Strong outlook with $120m presales in place for FY12 Broad market appeal – geography, product, price point Bank facility in place to August 2013 Inbuilt growth from current projects and fully funded
Slide 19: Investment case for CWP
Investment case for CWP For personal use only Well established company, experienced Board and Management Clear focus on targets and proven transparent business model Growing profits and strong balance sheet Low capital dilution during G.F.C. Well located and mature property portfolio, pres
Slide 20: Project Life
Project Life For personal use only Lots Pricing Guide Valuation Location Project Type Status Total Lots FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Remaining ($) Basis(1) WA Projects Rivergums Southern Corridor Residential Mature ## ## ## ## ## ## ## ## 1,200 650 170-185k I Cambridge Waters SE Corridor
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