Finbar Group Limited · ASX:FRI
Finbar — Shareholder Meeting (October 2023)
51 slides from Finbar's shareholder meeting presentation, Oct 18, 2023
Slide 1: 2023 Annual General Meeting
2023 ANNUAL GENERAL MEETING For pq@isem H 4
Slide 2: Proxy Votes Received
PROXY VOTES RECEIVED For personal use only Valid proxy forms were received from 139 shareholders representing 95,886,963 shares (35.24% of total issued shares). The proxy results for each resolution will be displayed for each agenda item. 2 2
Slide 3: Resolution 1 – Adoption of Remuneration Report
RESOLUTION 1 – ADOPTION OF REMUNERATION REPORT For personal use only To consider and, if thought fit, to pass, with or without amendment, the following resolution as a non-binding resolution: “That, for the purposes of section 250R(2) of the Corporations Act and for all other purposes, approval is g
Slide 4: Resolution – Re-election of Director – Mr Terence Peh
RESOLUTION 2 – RE-ELECTION OF DIRECTOR – MR TERENCE PEH For personal use only To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution: “That, for the purpose of clause 13.2 of the Constitution, ASX Listing Rule 14.4 and for all other pu
Slide 5: Resolution – Re-election of Director – Mr Ronald Chan
RESOLUTION 3 – RE-ELECTION OF DIRECTOR – MR RONALD CHAN For personal use only To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution: “That, for the purpose of clause 13.2 of the Constitution, ASX Listing Rule 14.4 and for all other pu
Slide 6: Resolution – Re-election of Director – Mr Eldon Wan
RESOLUTION 4 – RE-ELECTION OF DIRECTOR – MR ELDON WAN For personal use only To consider and, if thought fit, to pass, with or without amendment, the following resolution as an ordinary resolution: “That, for the purpose of clause 13.2 and 13.4 of the Constitution, ASX Listing Rule 14.4 and for all o
Slide 7: FY23 Results Summary
For personal use only FY23 RESULTS SUMMARY
Slide 8: Net Profit
NET PROFIT ➢ $8.2m decrease in net profit to $2.8m use only ➢ Higher construction costs and lower sales rates due to interest rate tightening having largest impact on earnings for project finished in FY23. ➢ 27th consecutive year of profitability 40 35 For personal 30 25 20 $m 15 10 5 0 FY95 FY96 FY
Slide 9: Sources of Income
Sources of Income JUN21 CONTRIBUTION TO TURNOVER – FY23 REVA 5% One Kennedy 2% AT238 49% 77% For personal use only Developments Vue 2% Source of Source of ➢ Core business of property All Earnings Source of Development Income development contributed to 77% of All AllEarnings Income turnover ➢ AT238 &
Slide 10: Segment Contributions FY23
SEGMENT CONTRIBUTIONS FY23 Development Finbar to Finbar Interest Activity Rent Sales Rental Property Income For personal use only Revaluations Admin Other Profit 11 10 9 8 7 $M 6 5 4 3 2 1 0 Positive Impact Negative Impact 10
Slide 11: Cash
CASH $70 For personal use only $60 ➢ FY end cash position of $18.2m $50 ➢ Have managed high construction $40 cost inflationary market conditions $m for all four significant projects within cash reserves and company $30 cashflow. $20 $10 $0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Slide 12: Earnings Per Share & Dividends
Earnings Per Share & Dividends 10 DIVIDENDS Cents per share 8 6 For personal use only 4 ➢ No interim or final dividend paid for FY23 2 ➢ 166.5c fully franked per share paid since inception as property developer 0 ➢ Capital Management Review to be conducted on completion of Civic Heart to determine I
Slide 13: Current Project Debt & Coverage
Current Project Debt & Coverage PROJECT CONSTRUCTION DEBT Debt & Pre-sales Coverage $500 For personal use only $450 ➢ $34.5m construction facility for AT238 $400 repaid in FY23 $350 ➢ Strong presales coverage on total facility $300 $M values $250 ➢ All debt remains project specific $200 $150 ➢ No co
Slide 14: Market Activity Update
MARKET ACTIVITY UPDATE For personal use only
Slide 15: Total Number of Sales Per Month
TOTAL NUMBER OF SALES PER MONTH ➢ Interest rate tightening over short period of time has subdued sales activity For personal use only 90 4.50 LOTS ➢ Inverse correlation between RBA cash rate RBA CASH RATE and monthly sales rates 80 77 4.00 74 ➢ Slight increase in sales activity after two 70 3.50 con
Slide 16: Total Off-the-Plan Pre-Sales Value
For personal use only Millions 16 $- $100 $200 $300 $400 $500 $600 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 NORWOOD May-16 Jul-16 ARBOR NORTH SUBI STRAND & TOCCATA LINQ Sep-16 Nov-16 Jan-17 UNISON ON TENTH Mar-17 MOTIV May-17 Jul-17 Sep-17 Nov-17 TOTAL OFF-THE-PLAN PRE-SALES VALUE CON
Slide 17: Completed Stock Sell Down
COMPLETED STOCK SELL DOWN ➢ AT238 completion has added to completed stock and averaging $2.5 million per month in completed stock sales Millions only COMPLETION COMPLETION COMPLETION $200 For personal use $180 $172 $163 $158 COMPLETION COMPLETION $160 $153 $147 $144 $147 $138 $137 $140 $125 $120 $10
Slide 18: Investor Sales v Owner Occupier per Calendar Quarter
FINBAR PROJECTS - INVESTOR SALES V OWNER OCCUPIER PER CALENDAR QTR 140 90.0% ➢ Perth rental price growth has investors supporting 50% of sales, albeit lower volumes use only 80.0% 120 of sales due to interest rate rises 70.0% 100 60.0% 52% 80 50.0% For personal 48.5% Units 40.0% 60 30.0% 40 20.0% 20
Slide 19: Yearly FIRB Sales
YEARLY FIRB SALES For personal use only UNITS SOLD TO FOREIGN BUYERS (CY) 100 90 ➢ 7% Foreign Buyer Surcharge Tax 80 introduced in January 2019 still 70 resulting in subdued foreign buyer activity 60 Units 50 ➢ WA Government concerned removing 40 the tax will increase apartment demand and not supply
Slide 20: Investment Property Update
INVESTMENT PROPERTY UPDATE For personal use only
Slide 21: Investment Properties
Investment Properties INVESTMENT PROPERTY For personal use only FAIRLANES PELAGO 181 Adelaide Terrace East Perth 23 & 26 Sharpe Avenue Karratha ➢ 7,577 sqm office building ➢ 99 apartments & 18 commercial lots ➢ Leased to Ventia, FTP Solutions, Finbar’s corporate office, ➢ Predominantly leased to cor
Slide 22: Investment Property Values & Gearing Profile
Investment Property Values & Gearing Profile INVESTMENT PROPERTY – BOOK VALUE & DEBT For personal use only $120 ➢ $3 million book value impairment at Fairlanes in FY23 Equity $100 ➢ $1.63 million book value increase at Debt Pelago in FY23 $80 ➢ $103.82 million in current book $m value for Pelago & F
Slide 23: Investment Property – Occupancy Levels
INVESTMENT PROPERTY – OCCUPANCY LEVELS 100 For personal use only 7,000 90 ➢ Fairlanes 57% leased (two vacant floors) 80 6,000 ➢ Pelago Commercial 61% leased. 70 ➢ Pelago Residential 100% leased. Rents continue 5,000 Commercial Sqm NLA 60 Residential Apartments to increase. 4,000 57% 50 100% ➢ Pelago
Slide 24: Pelago Residential – Advertised Rental Pricing
PELAGO RESIDENTIAL – ADVERTISED RENTAL PRICING For personal use only Advertised Pricing - Pelago 3 Bed, $2,150 3 Bed, $2,150 ➢ Solid rental growth since 2021 $2,200 3 Bed, $1,950 ➢ Remains best apartment asset in $2,000 2 Bed, $1,850 2 Bed, $1,900 Karratha and rental stock in 3 Bed, $1,800 Karratha
Slide 25: Project Update
PROJECT UPDATE For personal use only Effective as at 18/10/2021 25 25
Slide 26: Development Activity Update: FY23 Completed Projects
Development Activity Update FY23 COMPLETED PROJECTS For personal use only Effective as at 18/10/2021 26
Slide 27: Dianella Apartments, Chester Avenue
Concerto DIANELLA APARTMENTS 36 CHESTER AVENUE, DIANELLA Project: Dianella Apartments consists of 128 For personal use only one, two, and three bedroom apartments. ▪ Status: Completed ▪ Ownership: Wholly owned through subsidiary ▪ Value: $62.5 million ▪ Completed: FY22 ▪ Average price: $476,961 ▪ Sa
Slide 28: AT238 Adelaide Terrace, Perth
AT238 238 ADELAIDE TERRACE, PERTH Project: AT238 consists of 119 one, two, and For personal use only three bedroom apartments plus 2 ground floor commercial on 1,697 Sqm land over 31 levels. ▪ Status: Completed ▪ Ownership: 50% JV through SPV ▪ Value: ~$100.8 million ▪ Completion: FY23 ▪ Average pri
Slide 29: AT238 Adelaide Terrace Perth
AT238 238 ADELAIDE TERRACE PERTH For personal use only 29
Slide 30: Development Activity Update: Projects Under Construction
Development Activity Update PROJECTS UNDER CONSTRUCTION For personal use only Effective as at 18/10/2022 30
Slide 31: Civic Heart, Mends Street, South Perth
CIVIC HEART Concerto 1 MENDS STREET, SOUTH PERTH Project: Civic Heart will consist of 309 one, two, and three bed apartments, plus 26 For personal use only commercial lots. ▪ Status: Under Construction ▪ Ownership: 52.5% JV with landowner ▪ Value: ~$433 million ▪ Est. Completion: FY24 ▪ Average pric
Slide 32: Civic Heart Construction Progress Images
Level 30 of 38 CIVIC HEART CONSTRUCTION PROGRESS IMAGES Complete 21 of 21 For personal use only 32 32
Slide 33: For personal use only
For personal use only 33
Slide 34: Aurora, Kintail Road, Applecross
AURORA Concerto 3 KINTAIL ROAD, APPLECROSS Project: Aurora will consist of 118 one, two, For personal use only and three bed apartments plus 3 ground floor commercial lots. ▪ Status: Under Construction ▪ Ownership: 50% JV with landowner ▪ Value: ~$148.4 million ▪ Est. Completion: FY24 ▪ Average pric
Slide 35: Aurora Construction Progress Images
AURORA CONSTRUCTION PROGRESS IMAGES For personal use only Level 19 of 25 35
Slide 36: The Point, Rowe Avenue, Rivervale
THE POINT Concerto 31 ROWE AVENUE, RIVERVALE Project: The Point will consist of 167 one, For personal use only two, and three bedroom apartments plus 9 ground floor commercial units. ▪ Status: Under Construction ▪ Ownership: 65% JV with landowner ▪ Value: ~$106.0 million ▪ Est. Completion: FY25 ▪ Av
Slide 37: The Point Construction Progress Images
THE POINT Concerto Level 9 of 19 CONSTRUCTION PROGRESS IMAGES For personal use only 37 37
Slide 38: Projects Marketed Off-the-Plan (Construction Not Commenced)
PROJECTS MARKETED OFF-THE-PLAN (CONSTRUCTION NOT COMMENCED) For personal use only Effective as at 18/10/2021 38 38
Slide 39: Garden Towers, East Perth
Concerto GARDEN TOWERS CNR PLAIN STREET & HAY STREET, EAST PERTH Project: Garden Towers East Perth will consist For personal use only of 331 one, two, and three bed apartments, and 13 commercial lots. ▪ Status: Pre-Sales ▪ Ownership: 50% JV through SPV ▪ Value: ~$260.5 million ▪ Est. Commencement: F
Slide 40: Development Approval Received
DEVELOPMENT APPROVAL RECEIVED For personal use only Effective as at 18/10/2021 40 40
Slide 41: Romeo Stage 3, Canning Highway, Applecross
ROMEO (STAGEConcerto 3 APPLECROSS) 912 CANNING HIGHWAY, APPLECROSS Project: Stage 3 will consist of approximately For personal use only 152 one, two, and three bed apartments, plus STAGE 3 3 ground floor commercial lots. ▪ Status: Development Approval Received. Launching to market Q4 FY23 ▪ Ownershi
Slide 42: Palmyra West, McGregor Road
PALMYRA WESTConcerto 45 MCGREGOR ROAD PALMYRA Project: Palmyra West existing approval is for For personal use only 130 one, two, and three bedroom apartments. ▪ Status: Development Approval Received. ▪ Ownership: 50% JV with landowner ▪ Value: TBC ▪ Est. Completion: TBC *Indicative lots and project
Slide 43: Lot 1000, Riversdale Road, Rivervale
LOT 1000 Concerto 32 RIVERSDALE ROAD, RIVERVALE Project: Lot 1000 comprises 4,069 square metres of For personal use only absolute waterfront land with expansive views of the Swan River, Stadium Precinct, and Perth CBD. Will consist 143 residential apartments. ▪ Status: Development approval received
Slide 44: Great Eastern Highway, Belmont
239 Concerto 239 GREAT EASTERN HIGHWAY, BELMONT Project: 194 one and two bedroom apartments, For personal use only plus two commercial lots. ▪ Status: Development Approval Received ▪ Ownership: Wholly owned through subsidiary ▪ Value: ~$100 million ▪ Est. Completion: TBC *Indicative lots and project
Slide 45: Land Bank
LAND BANK For personal use only Effective as at 18/10/2021 45 45
Slide 46: Lot 888, Rowe Avenue, Rivervale
LOT 888 Concerto LOT 888 ROWE AVENUE, RIVERVALE Project: Lot 888 comprises of 2370 square metres of land For personal use only within The Springs, Rivervale Precinct. ▪ Status: Development Approval received for 6,459m2 NLA commercial office building. ▪ Ownership: 50% JV through SPV ▪ Value: TBC ▪ Es
Slide 47: 2 Homelea Court, Rivervale
Concerto 2 HOMELEA COURT CNR ROWE AVENUE AND HOMELEA COURT, RIVERVALE Project: 2 Homelea Court will consist of approximately For personal use only 120 apartments plus two commercial lots. The site is comprised of four vacant blocks totaling 3,770 square metres. ▪ Status: Planning and Design ▪ Owners
Slide 48: ABC Building (Harmony), Adelaide Terrace
Concerto ABC BUILDING (HARMONY) 187 ADELAIDE TERRACE, EAST PERTH Project: Harmony comprises the former ABC Radio Studios For personal use only heritage building with a GFA of 3,711sqm over 3 levels. ▪ Status: Undertaking use assessment and for sale market sounding ▪ Ownership: Wholly owned through s
Slide 49: Current Pipeline
CURRENT PIPELINE $1.45b residual pipeline For personal use only 500 $688m under construction 450 400 350 $260m Next Commencement 300 250 $m 200 150 100 50 0 AT238 Civic Heart Aurora The Point Garden Romeo Palmyra West Harmony 2 Homelea 238 Great Lot 1000 Lot 888 Towers (Former ABC) Court Eastern Hwy
Slide 50: Apartments Developed to Date
APARTMENTS DEVELOPED TO DATE 632 For personal use only 1115 9000 8523 8000 7408 ➢ 6,776 completed apartments to date 6776 7000 ➢ Additional 1,747 apartments in current pipeline 6000 ➢ Finbar is responsible for developing 25.7% of all 5000 Perth – Inner apartment dwellings or 10.86% of all occupied a
Slide 51: Important Notice
Important Notice For personal use only Some of the information contained in this presentation may contain forward-looking revenue, timeline, and general statements that are subject to various risks, uncertainties, and changes. Forward-looking statements include those containing such words as ‘estima