Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — H1 FY2023 Earnings Presentation
37 slides from Cedar Woods Properties's earnings presentation, Feb 22, 2023
Slide 1: Half Year FY23 Results
HALF YEAR FY23 RESULTS Fletcher’s Slip, SA
Slide 2: Agenda
AGENDA 1. About Cedar Woods 2. Financial Results 3. Market Conditions 4. Our Portfolio 5. Outlook Harrisdale Green, WA
Slide 3: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY Cedar Woods would like to acknowledge the traditional custodians of this land. We pay our respects to the Elders past, present and emerging. For they hold the memories, the traditions and the culture of Aboriginal and Torres Strait Islander people across the nation. Ceremo
Slide 4: About Cedar Woods
ABOUT CEDAR WOODS Glenside, SA
Slide 5: Company Overview
COMPANY OVERVIEW ◼ ASX listed property company; established in 1987 ◼ Diversified national portfolio built on the back of proven business strategy • Products: land estates, townhouses, apartments & commercial • 10,500+ lots in pipeline; • 33 projects across VIC / SA / WA / QLD ◼ Excellent long term
Slide 6: Strategy: Geography, Product Type, Price Point
HALF YEAR FY23 FINANCIAL RESULTS STRATEGY Geography Good geographic PURPOSEspread of well-located projects in 4 states Our purpose is to create To grow our national project portfolio, long-term value for shareholders through the diversified by geography, product type & development of vibrant communi
Slide 7: Strategic Priorities
HALF YEAR FY23 FINANCIAL RESULTS STRATEGIC PRIORITIES FY23 PROGRESS Financial Strength Optimising performance through disciplined capital Continued support from our 3 banks with facilities increased & extended; management, a commercial focus, cost minimisation & long secure facility tenure; Gearing
Slide 8: ESG
HALF YEAR FY23 FINANCIAL RESULTS ESG ◼ New project sustainability standards implemented PURPOSE Our purpose is to create ◼ First carbon footprint mapping results long-term value for disclosed in FY22 ESG Report shareholders through the development of vibrant ◼ Implementing initiatives to better comm
Slide 9: Financial Results
FINANCIAL RESULTS Bushmead, WAWA
Slide 10: FY23 H1 Results Summary
HALF YEAR FY23 FINANCIAL RESULTS FY23 H1 RESULTS SUMMARY NET PROFIT SETTLEMENTS ACQUISITIONS AFTER TAX FY2023 H1 $9.1m FY2022 H1 TOTAL REVENUE FY2023 H1 356 lots 529 lots $152.3m FY2022 H1 Lots / homes / offices settled in H1 Lots added to project pipeline in H1 EARNINGS NET PRESALE PER SHARE FY2023
Slide 11: Balance Sheet & Funding
HALF YEAR FY23 FINANCIAL RESULTS BALANCE SHEET & FUNDING 31 Dec 2022 30 Jun 2022 Total assets (book value) $827.6m $786.3m Net assets (equity) $419.0m $421.2m Net tangible assets per share (book value not market value) $5.10 $5.13 Net bank debt $233.4m $198.7m Net bank debt to total tangible assets
Slide 12: Cash Flow & Capital Management
HALF YEAR FY23 FINANCIAL RESULTS CASH FLOW & CAPITAL MANAGEMENT Long term support from financiers ◼ Undrawn finance facility headroom of $42.4m ◼ Corporate facility limit increased by $30m to $330m in January 2023 to provide additional capacity Recycling of capital when appropriate ◼ Excess of curre
Slide 13: Market Conditions
MARKET CONDITIONS Glenside, SA
Slide 14: New Housing Sector Conditions
HALF YEAR FY23 FINANCIAL RESULTS NEW HOUSING SECTOR CONDITIONS ◼ Supportive macro themes & fundamentals – low unemployment, increasing migration, supply constrained ◼ Rising interest rates, inflationary pressures & resultant low sentiment continue to impact demand with lower sales volumes persisting
Slide 15: Macro Themes Supportive – New Housing Supply
HALF YEAR FY23 FINANCIAL RESULTS MACRO THEMES SUPPORTIVE – NEW HOUSING SUPPLY ◼ Historically low supply levels expected to underpin demand & pricing going forward 15
Slide 16: Macro Themes Supportive - Population Growth
HALF YEAR FY23 FINANCIAL RESULTS MACRO THEMES SUPPORTIVE - POPULATION GROWTH ◼ Historically high levels of overseas migration to drive demand for new housing National Source: ABS 16
Slide 17: Macro Themes Supportive - Low Unemployment & Job Security
HALF YEAR FY23 FINANCIAL RESULTS MACRO THEMES SUPPORTIVE - LOW UNEMPLOYMENT & JOB SECURITY ◼ Unemployment expected to remain at historically low levels ◼ Job security is a key driver of sentiment, which in turn is key to the new housing sector performance Source: 17 ABS Dec 22
Slide 18: Property Is a Long Term Generator of Positive, Reliable Returns
HALF YEAR FY23 FINANCIAL RESULTS PROPERTY IS A LONG TERM GENERATOR OF POSITIVE, RELIABLE RETURNS FOR INVESTORS 18 Source: CoreLogic
Slide 19: Our Portfolio
OUR PORTFOLIO Ancora Apartments, Fletcher’s Slip, SA
Slide 20: Diversified by Location & Product
HALF YEAR FY23 FINANCIAL RESULTS DIVERSIFIED BY LOCATION & PRODUCT PORTFOLIO BY PRESALES BY PRESALES BY LOCATION LOCATION PRODUCT TYPE # lots/homes/offices # lots/homes/offices # lots/homes/offices SA Commercial WA WA 11% SA 6% 52% 21% Land 26% QLD Townhouses 16% 55% 15% QLD 9% 23% 22% Apartments VI
Slide 21: Western Australia
HALF YEAR FY23 FINANCIAL RESULTS WESTERN AUSTRALIA ◼ 13 projects, more than 5,400 lots / dwellings ◼ Projects catering for a range of buyer types ◼ Land subdivision, townhouses & apartments ◼ Mixed sales results in H1 FY24, with north-western and southern corridors remaining most resilient 21
Slide 22: Project Example: Atwater
PROJECT EXAMPLE: ATWATER ◼ Former Palm Beach caravan park, purchased from Defense Housing Australia (DHA) ◼ Prime infill location close to the centre of Rockingham ◼ Mix of residential densities – small land lots & townhouses ◼ Sales launched in December 2022, with strong local interest from down si
Slide 23: Project Example: Eglinton Village
PROJECT EXAMPLE: EGLINTON VILLAGE ◼ 86 ha site in Perth’s north-west growth corridor ◼ Located 500 metres from the new Eglinton train station (to open in 2025) ◼ 1200+ lots to be delivered in several neighbourhoods ◼ Will include residential neighbourhoods, primary school, commercial hub & open spac
Slide 24: Victoria
HALF YEAR FY23 FINANCIAL RESULTS VICTORIA ◼ 9 projects (Currently 3 at Williams Landing) ◼ More than 2,300 lots / dwellings / offices + 17 hectares of commercial / apartment sites ◼ Land subdivision, townhouses, apartments & commercial projects ◼ Range of price points & buyer types ◼ Sales have been
Slide 25: Project Example: Williams Landing
PROJECT EXAMPLE: WILLIAMS LANDING ◼ Major masterplanned community with mixed use town centre ◼ Over 15 sites ready to be developed for apartments, townhouses, offices, education & retail ◼ Actively bidding for single tenant office opportunities that can significantly boost earnings when secured ◼ Th
Slide 26: Project Example: Mason Quarter
PROJECT EXAMPLE: MASON QUARTER ◼ 800+ lot residential estate in high performing suburb of Wollert ◼ 26 km north of Melbourne CBD ◼ 250+ pre-sales achieved ◼ Predominantly a first home buyer market. ◼ Significant price growth since project launch ◼ Construction underway for first five stages ◼ First
Slide 27: Queensland
QUEENSLAND ◼ 5 projects ◼ More than 1,500 lots / dwellings ◼ Land estates, townhouses & apartments ◼ Notwithstanding strong market conditions experienced in FY22, ongoing capacity challenges in Queensland’s construction sector has resulted in project delays ◼ Sage, Burpengary launched H1 FY2023, con
Slide 28: Project Example: Ellendale
PROJECT EXAMPLE: ELLENDALE ◼ Masterplanned community with ~900 residential lots ◼ Located 12km northwest of Brisbane CBD in suburb of Upper Kedron; adjacent to national park ◼ Approximately 50% complete ◼ First, 2nd & 3rd home buyer markets ◼ Limited direct competition ◼ Significant presales with st
Slide 29: Project Example: Sage Park
PROJECT EXAMPLE: SAGE PARK ◼ Masterplanned community with over 300 residential lots ◼ Located 40km north of Brisbane CBD in suburb of Burpengary ◼ Launched to market Q1 FY23 with good pre-sales achieved ◼ Sales Office launching March 2023. The sales office will be off- the-grid, featuring solar pane
Slide 30: South Australia
SOUTH AUSTRALIA ◼ 6 well located projects (including 4 projects at Glenside & 2 at Fletcher’s Slip) ◼ More than 1,200 townhouses & apartments remaining ◼ Projects have strong sustainability credentials ◼ High performing projects with demonstrated demand ◼ Mix of buyer profiles - downsizers, first ho
Slide 31: Glenside
GLENSIDE ◼ 17 Ha, 3km from Adelaide CBD ◼ High end suburb of Glenside in Adelaide’s inner east ◼ 1,000+ townhouses & apartments ◼ Monarch apartments 100% sold & under construction ◼ Banksia apartments 80% sold & construction started, co- development with Tokyo Gas ◼ 70 townhouses 50% sold & construc
Slide 32: Fletcher's Slip
FLETCHER’S SLIP ◼ 14 km north-west of the CBD ◼ 500+ townhouses & apartments ◼ Adjacent to train station & harbour, walking distance to the beach & shops ◼ Significant enquiry & sales recorded ◼ ‘Sirocco’ apartments 100% sold & under construction ◼ 36 presold townhouses under construction ◼ Mix of b
Slide 33: Outlook
OUTLOOK Ariella Private Estate, WA
Slide 34: New Projects to Deliver First Earnings
HALF YEAR FY23 FINANCIAL RESULTS NEW PROJECTS TO DELIVER FIRST EARNINGS FY2023 Future years ▪ Incontro townhouses, WA ▪ Incontro apartments, WA ▪ Lincoln apartments, VIC ▪ Hamersley residential land, WA ▪ Aster apartments, VIC ▪ Fieldstone residential land, VIC ▪ Mason Quarter residential land, VIC
Slide 35: Outlook
HALF YEAR FY23 FINANCIAL RESULTS OUTLOOK ◼ Supportive macro themes & fundamentals, however rising interest rates, inflationary pressures & soft sentiment are expected to continue to impact sales over FY23 REVENUE & PRESALES ◼ When interest rates & inflation stabilise, the rapid return of 400 immigra
Slide 36: Disclaimer
While every effort is made to provide complete and accurate information, Cedar Woods Properties Limited does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. Subject to any terms implied by law and which cannot
Slide 37: Appendix 1: Project Pipeline
HALF YEAR FY23 FINANCIAL RESULTS APPENDIX 1: PROJECT PIPELINE CORRIDOR / LOTS/UNITS LOTS/UNITS PROJECT NAME LOCATION PROJECT TYPE PROJECT REMAIN FY23 FY24 FY25 FY26 FY27 FY28 WESTERN AUSTRALIA - PERTH Ariella, Brabham North East Residential Land 1,225 516 The Brook at Byford South East Residential L
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