Winton Land Limited · NZX:WIN
Winton Land — FY2023 Earnings Presentation
51 slides from Winton Land's earnings presentation, Aug 22, 2023
Slide 1: Winton FY23 Annual Results
NORTHBROOK Winton FY23 Annual Results WYNYARD QUARTER 1. Business Update Investor Presentation 22 AUGUST 2023
Slide 2: Presenting Today
Presenting Today Chris Meehan Chief Executive Officer Jean McMahon Chief Financial Officer NORTHBROOK 2 WANAKA
Slide 3: Business Update, Financial Overview, ESG Overview, Market and Outlook
1. Business Update 2. Financial Overview 3. ESG Overview 4. Market and Outlook 3 LAUNCH BAY HOBSONVILLE POINT
Slide 4: Business Update
NORTHLAKE Business Update WANAKA
Slide 5: Winton Snapshot
Winton Snapshot Founded Large-Scale Landbank Portfolio Well Resourced 2009 by Chris and Developer Pipeline: 6,407 units1 26 Projects across 14 65 Employees Michaela Meehan Residential Communities 4 Offices Retirement AYRBURN ARROWTOWN Shareholding Increasing Recurrent Strong Balance Sheet De-Risked
Slide 6: Summary FY23
Summary FY23 A record year of delivery and settlements during the 12 months ending 30 June 2023 (FY23) resulted in post tax earnings within guidance of $73.8 million1 $211.4m $108.7m 51.4% $64.6m 30.6% Revenue Gross Profit Gross profit Net Profit NPAT Margin Up 32.5% on FY22 Margin After Tax 6,407 7
Slide 7: Business Highlights
Business Highlights A record year of delivery - 116 more units delivered than FY22 Appointment of Steven Joyce to the Board Strong pre-sale book continues to protect future revenues Locked in supply contracts to minimise the effects of supply chain and inflation issues Resource consent grant
Slide 8: Record Year of Delivery
Record Year of Delivery FY23 is a record year for Winton with 565 units settled, delivering $211.4m of revenue. Neighbourhood Units settled Units settled Total H1 FY23 H2 FY23 FY23 Lakeside 111 75 186 Beaches 82 90 172 North Ridge - 105 105 Northlake 13 70 83 Launch Bay 13 2 15 River Terrace - 4 4 T
Slide 9: Significant landbank pipeline
Significant landbank pipeline Pipeline of over 6,000 units remain to be delivered in future years. 6,000+ 1,200 1,000 800 600 553 565 449 400 247 186 171 200 76 - ¹ Prior FY18A FY19A FY20A FY21A FY22A FY23A FY24F+ Settlements include completed communities: • Longreach – 163 units • Lakes Edge – 55 u
Slide 10: Significant progress onsite FY23
Significant progress onsite FY23 Progressed works on future stages, despite unprecedented weather North Ridge Cessnock conditions. • Stages 4-6 are complete, with 105 lots settled. 3 lots have settled since 30 June 2023, with the remaining 14 completed lots expected to settle by the end of FY24. • R
Slide 11: Significant progress onsite (cont.) FY23
Significant progress onsite (cont.) FY23 Progressed works on future stages, despite unprecedented weather conditions. Northlake Wanaka • Duplex Townhouses completed and settled (28 dwellings). • Alta Villa Townhouses - at the end of FY23 the show suite was completed and opened for marketing. The bal
Slide 12: Northbrook construction and pre-sales underway
Northbrook construction and pre-sales underway Northbrook Wynyard Quarter • Resource consent has been obtained. • Onsite works are expected to commence in Q2 FY24. • The show apartment and flagship sales suite launched in June 2023. • Strong interest continues. Northbrook Wanaka • Civil works contin
Slide 13: Winton's retirement living portfolio
Winton’s retirement living portfolio The standard terms under the Northbrook Occupational Right Agreement will provide for a 30% Deferred Management Fee over a four-year period for independent living units and a 30% Deferred Management Fee over a two-year period for care suites. Independent and Nort
Slide 14: Moving forward at Sunfield
Moving forward at Sunfield A forward-thinking and innovative ‘15-minute community’ powered by the sun and 90% less cars. • We are moving forward with the 50 hectares of the property which is currently zoned future urban with a more traditional masterplan supported by current regulation, yielding ~2,
Slide 15: Financial Overview
AYRBURN Financial Overview ARROWTOWN
Slide 16: FY23 Financial Performance
FY23 Financial Performance Winton’s financial performance in FY23 represents a record year of delivery. Financial Performance Statement of Financial Performance FY23 FY23 PFI1 FY22 NZ$m (unless indicated otherwise) Year Ended Year Ended Movement Year Ended Movement 30-Jun-23 30-Jun-23 30-Jun-22 • Wi
Slide 17: FY23 Financial Position
FY23 Financial Position Winton has historically operated with a conservative level of debt in its capital structure. Statement of Financial Position FY23 FY23 PFI1 FY22 Financial Position NZ$m (unless indicated otherwise) As at As at As at Movement Movement 30-Jun-23 30-Jun-23 30-Jun-22 • Winton con
Slide 18: FY23 Statement of Cash Flows
FY23 Statement of Cash Flows Winton maintains a strong cash position with zero debt. Statement of Cashflows FY23 FY23 PFI1 FY22 Cashflows Year Ended Year Ended Year Ended Movement NZ$m (unless indicated otherwise) Movement 30-Jun-23 30-Jun-23 30-Jun-22 • Net operating cashflows are increased by $20.
Slide 19: FY23 Dividend
FY23 Dividend Winton confirms a final dividend for FY23 in line with guidance. • The Board of Directors has declared a 2.1600 cent net dividend per share. This is in line with guidance issued in February 2023 and reaffirmed in June 2023. • Winton’s dividend policy is to target an increasing distribu
Slide 20: ESG Overview
AYRBURN ESG Overview ARROWTOWN
Slide 21: ESG FY23 – Creating thriving neighbourhoods
ESG FY23 – Creating thriving neighbourhoods Finalised sustainability framework Completed first emissions inventory Planted ~35,000 trees and plants throughout Winton neighbourhoods Completed Health and Safety review and implemented Master H&S System Submitted design for first building with
Slide 22: FY24 ESG Priorities
ESG – FY24 FY24 ESG Priorities TO DATE, WE HAVE PLANTED OVER • Emission reduction targets and emission 238,000 reduction plan. • Complete Scope 3 emissions TREES AND PLANTS measurement. • Climate-related disclosures IN WINTON NEIGHBOURHOODS implementation. • Winton sustainability standards for desig
Slide 23: Market and Outlook
LAUNCH BAY Market and Outlook HOBSONVILLE POINT
Slide 24: Market and Outlook
Market and Outlook The New Zealand housing market has faced headwinds over the past 18 months, however as we head into FY24 there are strong indicators that the market is near to or at the bottom. Building consents issued¹ Slower building starts 5,400 5,000 • New consents for dwellings have fallen n
Slide 25: Market and Outlook
Market and Outlook Rental prices have shown signs of upward sentiment, and are a key leading indicator of property price sentiment. Rental flow index New Zealand¹ 1750 Rental price stability 1700 1650 1600 1550 Rental price growth rate 1500 Rental price growth rate slows increases again 1450 prior t
Slide 26: Market and Outlook
Market and Outlook The compounding impact of high migration, reduced household sizes, and an ageing population will place pressure on the already short housing supply. Increased net migration Annual Net Migration returns to pre-Covid levels¹ 100,000 • Net migration in the year ending June 2023 total
Slide 27: Market and Outlook
Market and Outlook Winton continues to operate with financial discipline to enable us to thrive through the cycle. • NZ housing market has faced headwinds over the past eighteen months, however as we head into FY24 there are strong indicators that the market is near to or at the bottom of the cycle.
Slide 28: Questions
NORTHBROOK Questions AVON LOOP
Slide 29: Important Notice and Disclaimer
DISCLAIMER Important Notice and Disclaimer This disclaimer applies to this document and the accompanying material (“Document”) or any information contained in it. The information included in this Document should be read in conjunction with the audited consolidated financial statements for the year e
Slide 30: WINTON
WINTON
Slide 31: Management Team
APPENDIX 1 Management Team Presenting Today Chris Meehan Jean McMahon Chief Executive Officer Chief Financial Officer • Founded Winton in 2009. • Founded the Belle Property • Over 18 years’ experience in real estate, finance and investment. • Over 30 years’ real estate real estate franchise in • Res
Slide 32: Reconciliation of Pro Forma EBITDA and NPAT
APPENDIX 2 Reconciliation of Pro Forma EBITDA and NPAT A bridge summary of pro forma EBITDA and NPAT. All values in $m FY23 FY23 PFI FY22 Year Ended Year Ended Year Ended Selected Financial Information Movement Movement 30 Jun 2023 30 Jun 2023 30 Jun 2022 Earnings before interest expense, taxation a
Slide 33: Neighbourhood Summary
APPENDIX 3 Neighbourhood Summary Winton’s 14 communities, with 13 in New Zealand and 1 in Australia. Target units remaining by type Target units Communities Location Target units1 Settled2 Pre Sold Units2 remaining1 Residential Retirement Commercial 1. Northlake Wanaka 972 (634) 338 85 200 128 10 2.
Slide 34: Development Staging
APPENDIX 4 Development Staging A balanced staging of developments mitigates risk and provides continuity of cashflows. Target units Project Name Location remaining1 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32+ Northlake Wanaka 210 Lakeside Te Kauwhata 930 Launch Bay Hobsonville 65 Sunfield Auckland
Slide 35: Development Staging (cont.)
APPENDIX 4 Development Staging (cont.) Winton holds investment properties to benefit from annuity income. Target units Project Name Location remaining1 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32+ Northbrook Wynyard Auckland 154 Quarter Northbrook Avon Loop Christchurch 210 Northbrook Arrowtown Arr
Slide 36: Project Summary
APPENDIX 5 Project Summary Winton’s 14 communities comprise of 26 projects with different target periods and product mix. Residential Unsettled Project # Project Location units1 1 Northlake: Residential Lots Wanaka 148 2 Northlake: Townhouses Wanaka 27 3 Northlake: Apartments Wanaka 25 4 Lakeside: R
Slide 37: Project Summary
APPENDIX 5 Project Summary Retirement Unsettled Project # Project Location units1 15 Northbrook: Wanaka Wanaka 128 16 Northbrook: Launch Bay Hobsonville 214 17 Northbrook: Wynyard Quarter Auckland 154 18 Northbrook: Avon Loop Christchurch 210 19 Northbrook: Arrowtown Arrowtown 196 Total 902 Commerci
Slide 38: Property Compendium
APPENDIX 6 Property Compendium Northlake Residential Land • 634 residential lots have been developed and settled as at 30 June 2023. • Bulk earthworks for all future residential stages is complete with civil Description works underway on Stage 17. • Settlements of these residential lots will occur p
Slide 39: Property Compendium (cont.)
APPENDIX 6 Property Compendium (cont.) Northlake Commercial and Apartments • A commercial and short-term accommodation precinct located within vicinity to the Northlake Village Centre. • Apartments are almost completely pre-sold with the sale of Commercial Description tenancies progressing. • Constr
Slide 40: Property Compendium (cont.)
APPENDIX 6 Property Compendium (cont.) Lakeside Residential • Lakeside comprises a 179 hectare parcel of waterfront development land located within the heart of the “Golden Triangle” of Auckland, Hamilton and Tauranga. • The private plan change (which became operative in July 2018) to rezone the pro
Slide 41: Property Compendium (cont.)
APPENDIX 6 Property Compendium (cont.) Ovation Launch Bay • A development consisting of a six-storey apartment building and two townhouses. Located on the edge of the Launch Bay precinct overlooking the Waitemata Harbour. Description • A mix of one, two and three bedroom ‘high end’ apartment units a
Slide 42: Property Compendium (cont.)
APPENDIX 6 Property Compendium (cont.) Jimmy’s Point Launch Bay • A development consisting of a six-storey apartment building of 30 units. Located above the Jimmy’s Point Reserve, the development enjoys views of the Waitemata Harbour and beyond. Description • A mix of studio, one, two and three bedr
Slide 43: Property Compendium (cont.)
APPENDIX 6 Property Compendium (cont.) Sunfield • Winton has contracted to purchase a 200 hectares parcel of land located in Ardmore in the south of Auckland. • Sunfield sits between the rapidly urbanising and expanding neighbourhoods of Takanini and Papakura, with Ardmore Airport to the east. There
Slide 44: Property Compendium (cont.)
APPENDIX 6 Property Compendium (cont.) Northbrook Wynyard Quarter • A ~154-unit retirement village consisting of ~119 independent and serviced units and ~35 care suites, a clubhouse and amenity building for social and active recreation and a main entry building with offices, staff room, kitchen, Des
Slide 45: Property Compendium (cont.)
APPENDIX 6 Property Compendium (cont.) Northbrook Avon Loop • A ~210-unit retirement village consisting of ~178 independent units and serviced and ~32 care suites, a clubhouse and amenity building for social and active recreation and a main entry building with offices, staff room, Description kitche
Slide 46: Property Compendium (cont.)
APPENDIX 6 Property Compendium (cont.) Northbrook Arrowtown • Northbrook Arrowtown comprises an approximately 15 hectare parcel of development land located in Arrowtown, next to the Millbrook resort and alongside a spectacular waterfall and creek. • A ~196-unit retirement village consisting of ~173
Slide 47: Property Compendium (cont.)
APPENDIX 6 Property Compendium (cont.) Ayrburn Farm • Ayrburn Farm comprises an approximately 42 hectare parcel of land located in the heart of the growing Arrowtown and Lake Hayes basin. • A district plan review process is currently underway to rezone the land from rural to Wakatipu Basin Lifestyle
Slide 48: Property Compendium (cont.)
APPENDIX 6 Property Compendium (cont.) Beaches • Matarangi is a popular tourist town on the Coromandel Peninsula. • Stages 3 to 13 are complete. Description • Stages 14 and 15 are consented with works underway due for settlement in FY24-FY25. • Settlements of these residential lots will occur progre
Slide 49: Property Compendium (cont.)
APPENDIX 6 Property Compendium (cont.) North Ridge • North Ridge comprises a circa 121 hectare parcel of development land located in Bellbird, a suburb of Cessnock in the heart of the Hunter Valley, circa 150km, two hours’ drive north of the Sydney CBD. • The site comprises three parcels: a 36-hecta
Slide 50: Property Compendium (cont.)
APPENDIX 6 Property Compendium (cont.) River Terrace • 17 large lifestyle blocks, 15 of which have been settled as lots during FY23. Description • 1 commercial lot, which was settled during FY23. • Two dwellings have been constructed to be offered to the market as ‘house and land’ packages. 1 pre-so
Slide 51: Property Compendium (cont.)
APPENDIX 6 Property Compendium (cont.) Bridesdale Farm • Bridesdale Farm is a residential master planned community located in Lake Hayes Estate, Queenstown. • 137 residential lots and a commercial lot have been developed and settled. Description • A district plan review process is underway to rezone