Waypoint Reit Ltd. · ASX:WPR
Waypoint Reit — ASX CEO Connect (March 2018)
24 slides from Waypoint Reit's conference presentation, Mar 29, 2018
Slide 1: ASX CEO Connect Presentation
ASX CEO CONNECT PRESENTATION Viva Energy REIT ASX CEO Connect Presentation 29 March 2018
Slide 2: Agenda
AGENDA Highlights 4 Financial Results 7 Portfolio Update 11 Industry Update 18 Strategy & Outlook 20 Questions & Glossary 22
Slide 3: Disclaimer
Disclaimer: For a reconciliation of the non-IFRS independent verification, the accuracy Manager Pty Ltd, nor any of their forward-looking statements. Any This presentation has been prepared financial information to IFRS- and completeness of all information associates, related entities or forward-loo
Slide 4: Key Highlights
HIGHLIGHTS VVR ASX CEO CONNECT 29 MARCH 2018 Key Highlights FOR FULL YEAR ENDED 31 DECEMBER 2017 CONTINUED EARNINGS PER UPLIFT IN NTA GROWTH SECURITY ABOVE FROM PROPERTY THROUGH FORECAST REVALUATIONS ACQUISITIONS 4
Slide 5: Financial Highlights
HIGHLIGHTS VVR ASX CEO CONNECT 29 MARCH 2018 Financial Highlights FOR FULL YEAR ENDED 31 DECEMBER 2017 $170.5 million 13.41 CPS NTA +5.8% to 11% pa 0.24% pa 32% statutory Distributable $2.19 per total property management gearing profit Earnings security 1 return costs ratio For FY2017 For FY2017 Res
Slide 6: Portfolio Overview
HIGHLIGHTS VVR ASX CEO CONNECT 29 MARCH 2018 Portfolio Overview AT 31 DECEMBER 2017 $2.28 billion 1.86 million m 2 76% metro WALE of 100% portfolio of real estate properties 13.7 years occupancy Portfolio of 438 high-quality Geographically diversified 24% regional properties With 3% per annum fixed
Slide 7: Statutory Financial Performance
FINANCIAL RESULTS VVR ASX CEO CONNECT 29 MARCH 2018 Statutory Financial Performance Full year Part year Statutory Profit and Loss 31 December 2017 31 December 20161 $ million $ million Income Rental income from investment properties 127.9 49.2 Revenue from investment properties – straight-line 29.02
Slide 8: Distributable Earnings
FINANCIAL RESULTS VVR ASX CEO CONNECT 29 MARCH 2018 Distributable Earnings Full year Part year Distributable Earnings 31 December 2017 31 December 20162 $ million1 $ million Net statutory profit for the period 170.5 1.0 Add back: amortisation of debt establishment costs 1.6 0.6 Add back: VVR establi
Slide 9: Financial Position
FINANCIAL RESULTS VVR ASX CEO CONNECT 29 MARCH 2018 Financial Position Full year Part year Balance Sheet 31 December 2017 31 December 20162 $ million1 $ million Assets Cash and cash equivalents 43.6 54.1 Prepayments and property deposits 8.2 2.0 Fair value of interest rate swaps 5.4 12.4 Investment
Slide 10: Capital Management
FINANCIAL RESULTS VVR ASX CEO CONNECT 29 MARCH 2018 Capital Management AS AT 31 DECEMBER 2017 • GEARING 32.1% VERSUS TARGET RANGE 35-45%, POTENTIAL TO ACHIEVE ACCRETION THROUGH ADDITIONAL DEBT-FUNDED ACQUISITIONS - Undrawn debt capacity of $160 million, full utilisation moves gearing to 36.6% • DRAW
Slide 11: Portfolio Overview
PORTFOLIO UPDATE VVR ASX CEO CONNECT 29 MARCH 2018 Portfolio Overview PORTFOLIO AT 31 DECEMBER 2017 Properties Value Average Value Average size WACR1 WALE $m $m m2 % years Metropolitan 311 1,743 5.6 3,514 5.5 14.0 Regional 127 538 4.2 6,031 6.8 13.1 Total 438 2,281 5.2 4,244 5.8 13.7 Shell Coles Exp
Slide 12: Property Revaluations
PORTFOLIO UPDATE VVR ASX CEO CONNECT 29 MARCH 2018 Property Total portfolio valuation Revaluations • Gross increase of $87 million or 4.2% • Cap Rate tightened from 5.9% to 5.8% AT 31 DECEMBER 2017 167 properties independently valued by JLL • Total gross increase of $36 million or 4.9% Metropolitan
Slide 13: Portfolio Profile
PORTFOLIO UPDATE VVR ASX CEO CONNECT 29 MARCH 2018 Portfolio • 1.86 million m2 of property geographically diversified Profile across all Australian states and territories AT 31 DECEMBER 2017 • 83% of properties by value located in Australia’s more populous Eastern seaboard states • 75% of property b
Slide 14: Portfolio Profile: Metropolitan and Regional Properties
PORTFOLIO UPDATE VVR ASX CEO CONNECT 29 MARCH 2018 Portfolio Metropolitan properties Profile • Typically higher-value and higher-volume properties that attract tighter Cap Rates AT 31 DECEMBER 2017 • Located on major roads with high traffic volumes and in higher population density areas • Ease of en
Slide 15: Portfolio Lease Profile
PORTFOLIO UPDATE VVR ASX CEO CONNECT 29 MARCH 2018 Portfolio Lease Profile AT 31 DECEMBER 2017 100% OCCUPANCY 3%1 PER ANNUM FIXED RENTAL INCREASES COMMENCED AUGUST 2017 Portfolio WALE 25% 20% % of income 15% 10% 5% 0% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 20
Slide 16: Acquisition Strategy
PORTFOLIO UPDATE VVR ASX CEO CONNECT 29 MARCH 2018 Acquisition VVR will continue to consider acquisition and Strategy development opportunities consistent with the following investment criteria: 1 Investment is high quality and strategically located; 2 Portfolio remains geographically diversified; 3
Slide 17: Acquisition Summary
PORTFOLIO UPDATE VVR ASX CEO CONNECT 29 MARCH 2018 Acquisition Summary TOTAL ACQUISITIONS FROM INITIAL LISTING TO 31 DECEMBER 2017 Properties Purchase price Average cost Average size WACR1 WALE $m $m m2 % years Metropolitan 7 76.4 10.9 5,002 5.7 9.2 Regional 6 26.8 4.5 23,272 7.1 10.2 Total 13 103.2
Slide 18: Evolution of Convenience Industry
INDUSTRY UPDATE VVR ASX CEO CONNECT 29 MARCH 2018 Evolution of • The mix of customers’ goods and services Convenience requirements are changing, supporting strong and consistent growth in the convenience sector1 Industry • The $8.3 billion Petrol and Convenience industry (excluding fuel sales) grew
Slide 19: Evolution of Fuel Industry
INDUSTRY UPDATE VVR ASX CEO CONNECT 29 MARCH 2018 Evolution of • Australian automotive fuel sales have experienced Fuel Industry +2.7% CAGR from July 2011 to June 20171 - premium unleaded sales +5.0% CAGR over period1 - diesel sales +4.1% CAGR over period1 • Diesel and premium fuels comprised over 7
Slide 20: Strategy
OUTLOOK VVR ASX CEO CONNECT 29 MARCH 2018 Strategy MARKET-LEADING NATIONAL SERVICE STATION AND CONVENIENCE PROPERTY DISTRIBUTION PLATFORM Irreplicable high- National 100% occupancy, 3% per annum rent Portfolio quality strategically distribution predominantly long- increases 2 and underpinned by loca
Slide 21: Outlook
OUTLOOK VVR ASX CEO CONNECT 29 MARCH 2018 Outlook Optimise core Ongoing Progressing FY2018 Distributable Target payout ratio business and opportunities for capital Earnings guidance 1 100% 1 of maintain low acquisition and management of 13.81-13.91 CPS Distributable management fee development progra
Slide 22: Questions
Questions 22
Slide 23: Glossary
GLOSSARY VVR ASX CEO CONNECT 29 MARCH 2018 Glossary The contractual alliance between Viva Energy Australia and Coles Express (and their associated entities) including the Alliance Alliance Agreement and Site Agreements as outlined in the PDS CAGR Compound average growth rate Cap Rate Capitalisation
Slide 24: Glossary
GLOSSARY VVR ASX CEO CONNECT 29 MARCH 2018 Glossary Interest Coverage Earnings before interest, tax, depreciation and amortisation (excluding any asset revaluations, mark-to-market movements and Ratio or ICR transaction costs) divided by net interest expense IPO Initial Public Offering JLL Jones Lan