Slide 1: HY21 Results Presentation
Abacus Property Group HY21 Results Presentation 18 February 2021
Slide 2: Platform metrics HY21
Platform metrics HY21 WEIGHTED NET TOTAL AVERAGE GEARING TANGIBLE ASSETS CAP RATE ASSETS A$3.6bn 5.82%1,2 18.2% $3.26ps3 8.2% on FY20 18bps on FY20 830bps on FY20 1.8% on FY20 STATUTORY FFO FFO EPS DPS PROFIT $151.8m $60.6m 9.06cps 8.50cps 85.0% on HY20 9.9% on HY20 14.4% on HY20 10.1% on HY
Slide 3: HY21 highlights
HY21 highlights Abacus is positioned as a strong asset backed, annuity style investment house focused on the ownership and management of Office and Self Storage assets Deployment of over $200 million into key sectors in HY21, funded with debt and divestment of non-core assets Following completio
Slide 4: Balance sheet allocation
Balance sheet allocation DECEMBER 2020 JUNE 2020 $3.6 billion of Total Assets1 $3.3 billion of Total Assets1 Core Non-core Core Non-core 96% 4% 94% 6% $3.3 billion $135 million $2.9 billion $183 million Office $1,573m Residential $135m Office $1,493m Residential $183m Self Storage $1,501m Self Stora
Slide 5: Financial Metrics
Financial Metrics
Slide 6: HY21 key financial metrics
HY21 key financial metrics Result highlights in HY21: KEY FINANCIAL METRICS HY21 HY20 FFO down 9.9% to $60.6 million (due to reduced contribution from non-core sectors) – Commercial portfolio FFO contribution increased AIFRS statutory profit $151.8m $82.1m 23.9% to $41.5 million – Self Storage por
Slide 7: Balance sheet – HY21
Balance sheet – HY21 NTA per security1 down 1.8% to $3.26 Balance sheet gearing at 31 December 2020 was 18.2% KEY FINANCIAL METRICS HY21 FY20 Completion of a $402 million Entitlement Offer in December 2020 following deployment of capital into key sectors NTA per security1 $3.26 $3.32 Bank fa
Slide 8: Investment portfolio – valuation
Investment portfolio – valuation The revaluation process for Abacus resulted in a net increase in investment property values for HY21 of $93.9 million HY21 FY20 HY21 FY20 – Gain of $97.5 million or 8.4% across the Self Storage INVESTMENT weighted weighted Valuation Valuation PORTFOLIO2 average ave
Slide 9: Operating Performance
Abacus PROPERTY Operating Performance
Slide 10: Office – snapshot
Office – snapshot OFFICE $1.6 billion (46% of total assets1) 90.0% (2.2%) Occupancy1 LFL income growth1,2 4.1yrs 5.56% WALE1 WACR3 47 340 Leasing deals4 Customers 96% 2% Rent collected5 Waivers provided6 1. Excludes development affected assets. 2. (4.0%) including the impact of COVID-19 waivers. Bas
Slide 11: Office – leasing metrics
Office – leasing metrics LEASE EXPIRY PROFILE (BY RENT) 33,537 sqm 18% new leased in HY201 82% renewals 27% 26% 35% on new deals average incentive 22% on renewals 22% 3.3% 13.7% on new deals leasing spreads 2.1% on renewals 15% 3.6% 93% fixed 13% average rent review 7% CPI 10% 9% $5642 psm $711 aver
Slide 12: Self Storage – snapshot
Self Storage – snapshot SELF STORAGE $1.5 billion (43% of total assets1) 6.0% 65% Passing yield2 Assets located in Top 3 Significant Urban Areas3 89.2% $252 Occupancy2 RevPAM2 1.8% $283 RevPAM growth2 Average rent psm2 1. Excludes investments in cash and other assets. 2. Established portfolio – 57 f
Slide 13: Self Storage – CY occupancy
Self Storage – CY occupancy1 VIC NSW NZ 92.0% 89.0% 92.0% 91.0% 88.0% 91.0% 90.0% 87.0% 90.0% 89.0% 86.0% 89.0% 88.0% 85.0% 88.0% 87.0% 84.0% 87.0% 86.0% 83.0% 86.0% 85.0% 84.0% 82.0% 85.0% 83.0% 81.0% 84.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Slide 14: Storage King platform
Storage King platform INTERNALISING OUR OPERATING PLATFORM Effective 1 December 2020, Abacus moved to 100% ownership of the Storage King platform Co-founder, Michael Tate will continue in his role of Storage King CEO and join the Abacus Executive Leadership Team Full internalisation enables co
Slide 15: Self Storage – portfolio additions
Self Storage – portfolio additions ACQUISITIONS DEVELOPMENTS Disciplined, metro acquisition strategy with a strong Over 6,000 sqm of NLA delivered in Robina (Gold Coast) pipeline Development pipeline of over $80 million will deliver more $94 million of Self Storage acquisitions1 settled than
Slide 16: Retail and non-core legacy investments
Retail and non-core legacy investments RETAIL $200 million1 (6% of total assets2) NON-CORE $135 million (4% of total assets2) Abacus continues to successfully execute on its stated strategy to realise legacy exposures 97.8% (0.1%) Non-core assets reduced by 26% during HY21 and now Occupancy3 LFL i
Slide 17: Sustainability – embedded in how we conduct business
Sustainability – embedded in how we conduct business Actively exploring opportunities Integration of ESG across the business to drive long term and managing risks sustainable growth Office portfolio NABERS Energy average of 4.3 stars (up from 4.2 stars at FY20) Solar installed Office portfolio N
Slide 18: Summary and Outlook
Abacus Summary and Outlook
Slide 19: Outlook
Outlook Abacus is positioned as a strong asset backed, annuity style investment house focused on the ownership and management of Office and Self Storage assets Following the acquisition of the Storage King self storage operating platform, Abacus is now a fully internalised AREIT with key asset foc
Slide 20: HY21 Data Pack
Abacus PROPERTY HY21 Data Pack
Slide 21: Contents
Contents Abacus Property Group Overview 22 Financial Performance 23-27 Investment Portfolio 28-31 Glossary 32 Important information 33 21 Abacus Property Group | HY21 Results Presentation
Slide 22: About Abacus
About Abacus Abacus Property Group (ASX:ABP), is a diversified Australian REIT with an investment portfolio concentrated in the Office and Self Storage sectors. We invest capital in real estate opportunities to deliver superior long term returns and maximise securityholder value. Abacus’ key focus i
Slide 23: Segment earnings
Segment earnings SELF PROPERTY COMMERCIAL OTHER HY21 TOTAL HY20 TOTAL STORAGE DEVELOPMENT Rental income 57.8 51.9 109.7 92.0 Finance income 7.8 0.1 7.9 35.2 Fee income 1.7 0.5 2.2 2.8 Share of profit from equity accounted investments1, 2 4.3 4.3 5.9 Sale of inventory 2.9 2.9 15.0 Other income 3.3 3.
Slide 24: Segment balance sheet
Segment balance sheet PROPERTY PROPERTY INVESTMENT DEVELOPMENT OTHER HY21 FY20 ($m) ($m) ($m) ($m) ($m) Commercial investment properties 1,685.8 1,685.8 1,612.2 Self Storage investment properties 1,253.9 1,253.9 1,040.7 PP&E, equity accounted and other investments, 299.6 46.0 345.6 345.0 financial a
Slide 25: Net tangible asset reconciliation
Net tangible asset reconciliation HY21 FY20 Net assets 2,721.0 2,206.7 Less Total external non-controlling interest (5.2) (5.0) Total stapled securityholders’ interest in equity 2,715.8 2,201.7 Less Intangible assets and goodwill (107.8) (32.4) Deferred tax assets/liabilities (net) 11.4 1.9 Total ne
Slide 26: Debt facilities
Debt facilities CAPITAL MANAGEMENT METRICS HY21 FY20 Total bank debt facilities $1,360m $1,113m Total bank debt drawn $724m $974m Term to maturity 3.6 yrs 3.9 yrs % hedged 62% 48% % hedged of total debt facilities 33% 42% Weighted average hedge maturity 2.0 yrs 2.3 yrs Average cost of debt – drawn 2
Slide 27: Debt maturity profile as at 31 December 2020
Debt maturity profile as at 31 December 2020 ($’m) 300 Available bank facility Committed bank facility Drawn bank debt 2.6 200 134.6 131.5 227.4 100 176.8 98.9 150.0 117.4 51.0 100.0 106.4 30.3 33.1 0 FY21 HY22 FY22 HY23 FY23 HY24 FY24 HY25 FY25 HY26 27 Abacus Property Group | HY21 Results Presentat
Slide 28: Investment portfolio metrics
Investment portfolio metrics PORTFOLIO METRICS SELF INVESTMENT PORTFOLIO SECTOR DIVERSIFICATION OFFICE OTHER TOTAL HY21 STORAGE Retail Industrial and Other 6% 1% Value1 ($m) 1,573 1,501 240 3,314 No. of assets 24 922 6 122 Office 48% NLA (sqm)3 132,441 442,147 71,769 646,357 Self Storage 45% WACR1 (
Slide 29: Portfolio revaluations
Portfolio revaluations VALUATION WEIGHTED AVERAGE CAP RATE ABACUS INVESTMENT PORTFOLIO BY SECTOR 31 DECEMBER 2020 ($’000) 31 DECEMBER 2020 Office $1,573,038 5.56% Self Storage $1,501,274 6.08% Other $239,905 6.20% Total investment portfolio $3,314,217 5.82% 1. Includes Office and Other. Note: Total
Slide 30: Self Storage metrics
Self Storage metrics PERFORMANCE METRICS AUS NZ HY21 FY20 PERFORMANCE METRICS HY21 HY20 Total Assets 77 15 921 81 Storage revenue 45.4 38.4 NLA (sqm) 363,805 78,342 442,147 383,010 Other revenue 6.5 4.3 Occupancy (%) 88.8 90.4 89.22 88.12 Total revenue 51.9 42.8 Rental Rate (psm) A$282 A$284 A$2832
Slide 31: Self Storage development pipeline
Self Storage development pipeline We will continue to identify additional development opportunities within our existing portfolio and strategically reinvest subject to market conditions 55,250 sqm of identified net lettable area to be developed over the short to medium-term Anticipated return1 on in
Slide 32: Glossary
Glossary TERM DEFINITION TERM DEFINITION AIFRS Australian International Financial Reporting kW Kilowatt Standards CPI Consumer price index LFL Like for like CPS Cents per stapled security NABERS National Australian Built Environment Rating system CY Calendar Year NLA Net lettable area DPS Distributi
Slide 33: Important information
Important information The information provided in this document is general, and may not be suitable for the specific purposes of any user of this document. It is not financial advice or a recommendation to acquire Abacus Property Group securities (ASX: ABP). Abacus Property Group believes that the i