Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — FY2020 Earnings Presentation
27 slides from Cedar Woods Properties's earnings presentation, Aug 27, 2020
Slide 1: Full Year FY20 Financial Results
Full Year FY20 Financial Results 27 August 2020
Slide 2: About Cedar Woods: Company Overview
About Cedar Woods: Company Overview S&P ASX 300 property company; market capitalisation of ~$420m Products: land estates, townhouses, apartments & commercial 9000+ lots in pipeline; 30 projects across VIC, SA, WA, QLD Lancaster Apartments, Williams Landing Artist’s Impression High amenity lo
Slide 3: About Cedar Woods: Strategy
About Cedar Woods: Strategy To grow our national project Geography Good geographic spread of well-located projects in 4 states portfolio, diversified by geography, product type and price point, so that it continues to hold broad Product Type Range of housing lots, townhouses, apartments and commerci
Slide 4: About Cedar Woods: Strategic Priorities
About Cedar Woods: Strategic Priorities FY20 PROGRESS Financial Strength Continued support from our 3 banks with facilities recently Optimising performance through disciplined capital extended; Gearing at low end of target range; Significant management, a commercial focus, cost minimisation and faci
Slide 5: About Cedar Woods: Purpose, Vision, Values
About Cedar Woods: Purpose, Vision, Values Our purpose and vision have interconnected objectives: VALUES Reliable and growing income streams for investors; PURPOSE Geography Our purpose is to create Quality housing or offices for customers; long-term value for shareholders through the developmen
Slide 6: About Cedar Woods: How we create value
About Cedar Woods: How we create value Geography Disciplined approach Research, design, Integrated approach to to acquisitions: planning and delivery: optimise results: • Tactical and research-based • Sustainable designs that • Positioning projects to decisions to identify projects optimise quality,
Slide 7: Financial: History of profits & dividends
Financial: History of profits & dividends 50 35 45 30 COVID-19 created soft 40 sales conditions 35 25 nationally in Q4 FY20 & social distancing 30 requirements at $ Millions Cents 20 25 construction sites, 15 which caused the delay 20 of a significant number 15 of settlements from Q4 10 FY20 to Q1 F
Slide 8: Financial: FY20 Full Year Summary
Financial: FY20 Full Year Summary RETURN TOTAL NET PROFIT ON EQUITY SHAREHOLDER AFTER TAX RETURN $20.9m 2016 2017 2018 2019 2020 TOTAL REVENUE 5.5% Below company -2.4% Outperformed All Ordinaries of -10.4%, $260.7m benchmark of10% Small Industrials of -10.2%, 2016 2017 2018 2019 2020 Peer group aver
Slide 9: Financial: Balance sheet strength & access to funding
Financial: Balance sheet strength & access to funding 30 June 30 Jun Geography 2020 2019 Total assets (book value) $646.7m $571.7m Net assets (equity) $378.7m $376.5m Net tangible assets per share (book) $4.67 $4.67 Net bank debt $142.7m $105.3m Net bank debt to equity 37.7% 28.0% Net bank debt to t
Slide 10: Financial: Outperforming peers & market indices
Financial: Outperforming peers & market indices CWP’s 3-year total shareholder return (FY18-FY20) is the standout performer when compared to ASX listed peers and relevant market indices Geography S&P Cedar Peer Group All Small Small S&P ASX300 Woods Average * Ordinaries Ordinaries Industrials ASX300
Slide 11: Our Portfolio: Summary
Our Portfolio: Summary 9,000+ lots/dwellings/units 30 projects across 4 states - VIC, WA, SA, QLD Land estates, townhouses, apartments & commercial projects High amenity locations & often located adjacent to train stations Projects positioned as quality developments within their respective
Slide 12: Our Portfolio: Diversified by product & location
Our Portfolio: Diversified by product & location Location Product Type # lots/homes/offices # lots/homes/offices Commercial 1% SA WA Townhouses 16% 9% Land Apartments 56% 69% QLD 9% 21% 19% VIC State Lots/units % Product Lots/units % SA 1,396 16% Commercial * 98 1% QLD ** 818 9% Townhouses 840 9% VI
Slide 13: Market Conditions: Property Sector
Market Conditions: Property Sector Demand impacted by social distancing, low buyer confidence & economic conditions But impact on housing has not been as much as expected with median house price drops modest thus far Detached housing expected to perform better than apartments over FY21 & FY22
Slide 14: Market Conditions: By State
Market Conditions: By State Market Outlook Melbourne Brisbane Perth Adelaide • Conditions currently subdued due to COVID-19 & • Qld is potentially the best placed state in the • Land sales currently strong as supported • Mature & relatively stable market with lower social restrictions in place until
Slide 15: Government Stimulus: Property Sector
Government Stimulus: Property Sector HomeBuilder grant driving sales Contracts to be signed by 31 December Construction to start within 3 months of contract (6 months in Victoria) New property value up to $750,000 Income eligibility $125,000 individual, $200,000 couple Increases affordabil
Slide 16: Market Conditions: HIA's Outlook for Dwelling Starts
Market Conditions: HIA’s Outlook for Dwelling Starts (August 2020) WA VIC QLD SA 16
Slide 17: Our Projects: Western Australia
Our Projects: Western Australia 14 projects, more than 5,000 lots / dwellings Projects catering for a range of buyer types Land subdivision, townhouses & apartments 2 new developments delivering first contributions in FY21, Solaris and Ariella (northern precinct) FY21 H1 strong sales resul
Slide 18: Our Projects: Western Australia
Our Projects: Western Australia Bushmead 946 lots, 16km east of Perth CBD Premium market positioning, land price range $180,000 - $350,000 Industry awards for excellence & strong sustainability credentials Established project with multiple stages completed & 6+ years remaining Ariella Ariell
Slide 19: Our Projects: Victoria
Our Projects: Victoria 10 projects (4 currently at Williams Landing) More than 1,700 lots / dwellings / offices + 17 hectares of commercial / apartment sites Land subdivision, townhouses, apartments & commercial projects Challenging development conditions under Stage 4 COVID-19 restrictions
Slide 20: Our Projects: Victoria
Our Projects: Victoria Williams Landing Up to 10 years remaining project life Diverse mix of land, townhouses, apartments & commercial developments 101 Overton Road, Williams Landing Numerous projects underway (apartments, commercial & residential lots) Jackson Green (Huntington Apartments) 10
Slide 21: Our Projects: Queensland
Our Projects: Queensland Ellendale (Upper Kedron) 228 ha site, 12km west of Brisbane CBD 900 lots approved, over 360 lots now settled Price range $266,000 – $550,000 Several stages settled in FY20 Ellendale Enquiries & sales consistent since onset of COVID-19 Ellendale Greville (Wooloowin)
Slide 22: Our Projects: Queensland
Our Projects: Queensland Burpengary 28.55ha site, 35km north of Brisbane CBD Located in the high growth area of Moreton Bay Conditional acquisition, subject to Burpengary Ellendale planning approval Planning application lodged for 326 lots Approx. 9ha, 35% of the site proposed for parks &
Slide 23: Our Projects: South Australia
Our Projects: South Australia Glenside 17ha, 3km from Adelaide CBD Around 1,000 dwellings - townhouses & apartments 8-10 year project duration 61 townhouses settled, first apartment building 50% settled in FY20 Second building 50% sold in FY20 and under construction Glenside 3 industry a
Slide 24: Outlook
Outlook Sector drivers of population growth, economic growth and unemployment are currently weak Government stimulus is underpinning demand for housing however COVID-19 is expected to impact sales and potentially delivery programs over FY21 WA portfolio to continue to benefit from significant stimul
Slide 25: The Cedar Woods investment proposition
The Cedar Woods investment proposition Stable & experienced Board & Management Track record of profits & fully franked dividends Well positioned to benefit from WA stimulus Portfolio diversified across geographies, product & price point CWP’s TSR significantly outperformed direct peers & relevant in
Slide 26: Disclaimer of liability
Disclaimer of liability 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
Slide 27: Appendix 1: Project pipeline
Appendix 1: Project pipeline Geography Price Point 27
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