Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — FY2022 Earnings Presentation
42 slides from Cedar Woods Properties's earnings presentation, Aug 30, 2022
Slide 1: FY22 Financial Results
FY22 FINANCIAL RESULTS CEDAR WOODS
Slide 2: Glenside, SA
For personal use only Glenside, SA
Slide 3: Williams Landing, VIC
For personal use only Williams Landing, VIC
Slide 4: ASX listed property company
For personal use only ◼ ASX listed property company; market cap. of ~$370m ◼ Products: land estates, townhouses, apartments & commercial ◼ 10,300+ lots in pipeline; ◼ 34 projects across VIC / SA / WA / QLD ◼ Quality & sustainability feature strongly across projects ◼ Excellent long term track record
Slide 5: Purpose, Vision & Values
For personal use only PURPOSE Our purpose is to create PURPOSE long-term value for shareholders through the Purpose, Vision & development of vibrant communities. Values inform every decision we make, guide our conduct internally & our relationships with our VISION staff business partners, customers
Slide 6: Good geographic spread of well-located projects in states
For personal use only Good geographic spread of well-located projects in 4 states PURPOSE Our purpose is to create To grow our national project long-term value for shareholders through the development of vibrant portfolio, diversified by geography, communities. product type & price point, so that it
Slide 7: Acquisitions, Development, Marketing & Sales
For personal use only Acquisitions Development Marketing & Sales Disciplined approach Research, design, Integrated approach to to property acquisitions: planning & delivery: optimise results: • Tactical & research-based decisions to • Sustainable designs that optimise quality, • Positioning projects
Slide 8: FY22 Progress
For personal use only FY22 PROGRESS Financial Strength Continued support from our 3 banks with facilities increased & Optimising performance through disciplined capital extended; Gearing in the middle of target range; Significant facility management, a commercial focus, cost minimisation & headroom
Slide 9: Continued implementation of revised ESG strategy & reporting in FY22
For personal use only ◼ Continued implementation of revised ESG strategy & reporting in PURPOSE FY22 Our purpose is to create long-term value for shareholders through the ◼ Implementing initiatives to better development of vibrant understand carbon emissions & communities. reduce climate impact of o
Slide 10: The Brook at Byford WA
For personal use only The Brook at Byford WA
Slide 11: FY22 results highlights
For personal use only NET PROFIT NET PRESALE AFTER TAX SALES CONTRACTS $37.4m FY2020 FY2021 FY2022 TOTAL REVENUE 1108 lots $500m $333.0m FY2020 FY2021 FY2022 Lots / homes / offices sold Up $22m on pcp EARNINGS PER SHARE SETTLEMENTS RETURN ON EQUITY 45.7c FY2020 FY2021 FY2022 FULL YEAR DIVIDENDS 27.5
Slide 12: Balance sheet summary
For personal use only 30 Jun 2022 30 Jun 2021 Total assets (book value) $779.8m $651.8m Net assets (equity) $421.2m $400.4m Net tangible assets per share (book value not market value) $5.13 $4.92 Net bank debt $198.7m $113.3m Net bank debt to total tangible assets (less cash) 25.6% 17.6% Net bank de
Slide 13: Operating cash flow before land acquisitions
For personal use only OPERATING CASH FLOW BEFORE LAND ACQUISITIONS ◼ Strong liquidity position ◼ Strong operating cash flow produced by the business before acquisitions ($87.7m in FY22) ◼ Undrawn facility headroom of $87.8m MILLIONS ◼ Excess of current assets over current liabilities of $74.0m ◼ Inv
Slide 14: Williams Landing, VIC
For personal use only Williams Landing, VIC
Slide 15: Sound fundamentals - record low unemployment, population growing, supply constrained
For personal use only ◼ Sound fundamentals - record low unemployment, population growing, supply constrained ◼ Rising interest rates & inflationary pressures are currently impacting demand with lower sales volumes in Q4 FY22 & the potential for this to persist over FY23 in some states ◼ Households a
Slide 16: 60% of Australia's population growth comes from net overseas migration
For personal use only ◼ 60% of Australia's population growth comes from net overseas migration (NOM) providing a tailwind for new housing as it returns ◼ NOM was ~240k pa pre covid, generating significant housing demand ◼ September Federal Jobs & Skills Summit likely to result in improved migration
Slide 17: Dwelling commencements Q1 CY22 reflected an 11% drop in standalone houses
For personal use only ◼ Dwelling commencements Q1 CY22 (49,017) reflected an 11% drop in standalone houses ◼ Many approved projects aren’t being delivered due to construction sector capacity limitations & costs ◼ Development finance availability is also restricting supply ◼ Rental vacancy rates nati
Slide 18: Millars Landing, WA
For personal use only Millars Landing, WA
Slide 19: Portfolio by location, presales by location and product type
For personal use only PORTFOLIO BY PRESALES BY PRESALES BY LOCATION LOCATION PRODUCT TYPE # lots/homes/offices # lots/homes/offices # lots/homes/offices Commercial SA 5% WA SA WA 12% Townhouses Land 17% 54% 22% 18% 55% QLD 15% QLD 11% 19% 22% VIC 50% Apartments VIC State Lots/Units * % State Lots/Un
Slide 20: Solaris, WA
For personal use only 20 Solaris, WA
Slide 21: Western Australia projects
For personal use only ◼ 13 projects, more than 5,500 lots / dwellings ◼ Projects catering for a range of buyer types ◼ Land subdivision, townhouses & apartments ◼ 3 new projects secured - Rockingham, Eglington & Henley Brook as extension of Ariella Private Estate. ◼ Price growth low to moderate acro
Slide 22: Ariella, WA masterplanned community
For personal use only ◼ 1,150+ lot masterplanned community projects ◼ Additional land acquired in 2019 & 2022. ◼ 18 km north east of Perth CBD ◼ 500+ lots remaining - including Henley Brook ◼ Trading at 100 settlements pa. ◼ 15% price growth in last 12 months ◼ Strong presence of first homebuyers ◼
Slide 23: Eglinton, WA
For personal use only ◼ 86 hectare site in Perth’s north-west growth corridor ◼ Located 500 metres from the new Eglinton train station (to open in 2023). ◼ 1200 lots to be delivered in several neighbourhoods. ◼ Will include residential neighbourhoods, primary school, commercial hub & open space ◼ Ex
Slide 24: Williams Landing, VIC
For personal use only 24 Williams Landing, VIC
Slide 25: Victorian projects
For personal use only ◼ 11 projects (Currently 4 at Williams Landing) ◼ More than 1,900 lots / dwellings / offices + 17 hectares of commercial / apartment sites ◼ Land subdivision, townhouses, apartments & commercial projects ◼ Range of price points and buyer types ◼ Strong enquiry and sales across
Slide 26: Williams Landing, VIC masterplanned community
For personal use only ◼ Major masterplanned community with mixed use town centre; 3000 homes across several neighbourhoods ◼ 8-9 year project life remaining ◼ Over 15 sites with planning approval ready to be developed for apartments, townhouses, offices, education & retail ◼ Actively bidding for sin
Slide 27: Wollert, VIC
For personal use only ◼ 800+ lot estate in high performing suburb of Wollert ◼ 26 km north of Melbourne CBD ◼ 200+ pre-sales achieved since launch in 2021 ◼ Significant price growth since launch ◼ Construction underway for first three stages ◼ First settlements in H2 FY23 Wollert, VIC
Slide 28: Ellendale, Upper Kedron, QLD
For personal use only 28 Ellendale, Upper Kedron, QLD
Slide 29: Queensland projects
For personal use only ◼ 5 projects ◼ More than 1,500 lots / dwellings ◼ Land estates, townhouses & apartments ◼ Notwithstanding strong market conditions experienced in FY22, ongoing challenges in Queensland’s construction sector has resulted in project delays ◼ Increased the pipeline with the condit
Slide 30: Ellendale, Upper Kedron, QLD
For personal use only ◼ Masterplanned community with ~900 residential lots ◼ Located 12km northwest of Brisbane CBD in suburb of Upper Kedron; adjacent to national park ◼ Approximately 50% complete ◼ Significant presales with strong profit margins Ellendale, Upper Kedron, QLD
Slide 31: Sage, Burpengary, QLD
For personal use only ◼ Masterplanned community with over 300 residential lots ◼ Located 40km north of Brisbane CBD in suburb of Burpengary ◼ Planning approval received ◼ Launch to market Q1 FY23 ◼ Provides price point diversity in Queensland portfolio Sage, Burpengary, QLD
Slide 32: Fletcher's Slip, SA
For personal use only Fletcher’s Slip, SA
Slide 33: South Australian projects
For personal use only ◼ 5 well located projects (including 3 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 33
Slide 34: Glenside, SA
For personal use only ◼ 17 Ha, 3km from Adelaide CBD ◼ 1,000+ townhouses & apartments ◼ Monarch apartments 100% sold and under construction ◼ Banksia apartments 40% sold ◼ New releases in the coming weeks to meet significant demand Glenside, SA
Slide 35: Fletcher's Slip, SA
For personal use only ◼ 14 km north-west of the CBD ◼ 500+ townhouses & apartments ◼ First stage townhouses recently settled ◼ Adjacent to train station & harbour, walking distance to the beach & shops ◼ Significant enquiry and sales recorded ◼ ‘Sirocco’ apartments to commence construction late 2022
Slide 36: Rivergum, WA
For personal use only Rivergum, WA
Slide 37: Anticipated financial year of first earnings by project
For personal use only FY2023 Future years ▪ Incontro townhouses, WA ▪ Incontro apartments, WA ▪ Lincoln apartments, VIC ▪ Fieldstone residential land, VIC ▪ Aster apartments, VIC ▪ South Bank apartments, VIC ▪ Mason Quarter residential land, VIC ▪ Williams Landing town centre apartments, offices & c
Slide 38: Outlook: sound fundamentals, rising interest rates impacting sentiment
For personal use only ◼ Sound fundamentals of low unemployment, job security & wage growth, however rising interest rates are impacting sentiment ◼ Short & sharp interest rate cycle expected with peak around end 2022 REVENUE & PRESALES 400 ◼ Presence in relatively affordable markets (Qld, WA & SA),
Slide 39: Disclaimer
For personal use only 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
Slide 40: Solaris, WA
For personal use only 40 Solaris, WA
Slide 41: Project pipeline
a FY22 FINANCIAL RESULTS PROJECT PIPELINE WESTERN AUSTRALIA - PERTH, Project CEDAR WOODS moering oT CT roe ey — aarabee aaa maa a — ae oe es —r —— ee —a oa 7 ania = one SES = Sano = a oa aoa Ts eee oa aa re en — $= ee a ee a nal —_— ete ea Sa aalosTiooes ms ee Fark Santas Foil Ladnd Tora a ae EET re
Slide 42: Gross sales by quarter by state
For personal use only 450 429 409 400 391 394 364 ◼ Gross sales in Q4 350 327 338 FY22 slightly ahead of 300 308 291 299 PCP, Q4 FY21 284 250 260 ◼ Gross sales peaked in 221 March 2022 & have 200 softened in Q4 150 ◼ Sales impacted by lack of available stock at 100 strongly performing SA 50 townhous
Cedar Woods Properties — FY2022 Earnings Presentation on 6ix