Slide 1: FY20 Results Presentation
ABACUS PROPERTY GROUP FY20 Results Presentation 18 August 2020
Slide 2: Abacus platform FY20 overall
Abacus platform FY20 overall WEIGHTED TOTAL AVERAGE GEARING FFO ASSETS CAP RATE A$3.3bn 6.00%1,2 26.5% $124.6m 18.2% on FY19 29bps on FY19 240bps on FY19 3.6% on FY19 NET STATUTORY FFO EPS DPS TANGIBLE PROFIT ASSETS 19.38cps 18.50cps $3.32ps3 $84.7m 13.0% on FY19 flat on FY19 0.3% on FY19 58.
Slide 3: FY20 highlights
FY20 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 During the year, successfully deployed $820m1 of capital into key sectors of Office and Self Storage, funded with proceeds from di
Slide 4: COVID-19 response
COVID-19 response SUPPORTING OUR TEAM AND CUSTOMERS Focus on providing safe, secure and healthy; workspaces for our team and tenants, public areas and storage facilities Communication directly to all tenants – Ongoing as COVID-19 situation evolves Centralised collection, review and decision ma
Slide 5: Balance sheet allocation
Balance sheet allocation $820 million of capital deployment into Office and Self Storage sectors enhance portfolio quality and stability of income JUNE 2020 JUNE 2019 $3.3 billion of Total Assets1 $2.8 billion of Total Assets1 Core Non-core Core Non-core 94% 6% 87% 13% $2.9 billion $183 million $2.3
Slide 6: Portfolio composition transitions
Portfolio composition transitions Capital recycling into key focus sectors of Office and Self Storage Total Assets ($ billions) 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Office Self Storage Retail Residential FY17 FY18 FY19 FY20 6 Abacus Property Group | FY20 Results Presentation
Slide 7: Financial results
Financial results
Slide 8: FY20 key financial metrics
FY20 key financial metrics Result highlights in FY20: KEY FINANCIAL METRICS FY20 FY19 FFO down 3.6% to $124.6 million (due to reduced contribution from non-core sectors) – Commercial portfolio FFO contribution increased 18.2% to $70.2 million AIFRS statutory profit $84.7m $202.7m – Self Storage po
Slide 9: Balance sheet – FY20
Balance sheet – FY20 NTA per security1 down 0.3% to $3.32 Balance sheet gearing at 30 June 2020 was 26.5% KEY FINANCIAL METRICS FY20 FY19 Completion of a $250 million institutional placement in July 2019 and deployment of capital into key sectors NTA per security1 $3.32 $3.33 Post balance da
Slide 10: Investment portfolio – valuation
Investment portfolio – valuation 54% of Commercial investment properties and 62% of Self Storage facilities were independently valued during the year FY20 FY19 FY20 FY19 INVESTMENT weighted weighted The revaluation process for Abacus resulted in a net decrease Valuation Valuation PORTFOLIO2 aver
Slide 11: FY20 Operating Performance
FY20 Operating Performance
Slide 12: Office – snapshot
Office – snapshot OFFICE $1.5 billion (48% of total assets1) 91.5% 2.3% Occupancy LFL income growth 3.6 years 5.47% WALE WACR 24 c.330 Properties Customers 1. Excludes investments in cash and other assets 99 Walker Kingsgate, 2 Street, NorthFortitude King Street, Sydney NSW Valley QLD 12 Abacus Prop
Slide 13: Office – leasing metrics
Office – leasing metrics Abacus Office portfolio offers affordable rents with a clear path to rental growth TOP TEN OFFICE CUSTOMERS1 REPRESENT 27% OF OFFICE INCOME 19,000 sqm 76% new leased in FY20 24% renewals Real Estate 6% Apparel 10% 28% 31% on new deals average incentive 17% on renewals Bankin
Slide 14: Self Storage – snapshot
Self Storage – snapshot Abacus, a long term owner of a portfolio of Self Storage locations across Australia and New Zealand SELF STORAGE $1.2 billion (39% of total assets1) 6.2% 70% Passing yield2 Assets located in Top 3 Significant Urban Areas3 88.1% $248 Occupancy2 RevPAM2 0.0% $281 RevPAM growth2
Slide 15: Self Storage – occupancy rebounds
Self Storage – occupancy1 rebounds ACT NSW QLD 95% 89% 91% 94% 88% 90% 93% 87% 89% 92% 86% 88% 91% 85% 87% 90% 84% 86% 89% 83% 85% 88% 82% 84% Jan Feb Mar Apr May Jun Jul Jan Feb Mar Apr May Jun Jul Jan Feb Mar Apr May Jun Jul 2019 2020 2019 2020 2019 2020 VIC NZ LIKE-FOR-LIKE 91% 91% 91% 90% 90% 90
Slide 16: Self Storage – portfolio additions
Self Storage – portfolio additions ACQUISITIONS DEVELOPMENTS Disciplined, metro acquisition strategy with a strong pipeline Over 16,000 square metres of net lettable area delivered across – 96% (by value) metro/suburban three new developments in Brookvale (Sydney), Macquarie Park (Sydney) and St
Slide 17: Retail – super convenience and other
Retail – super convenience and other RETAIL $198 million1 (6% of total assets2) $198m 93.4% Abacus investment Occupancy 5.2 years 6.09% WALE WACR VALUE3 NLA ASSET KEY TENANTS STATUS ($m) (SQM) Ashfield, 193 24,976 Coles, Aldi, Core hold – Sydney NSW Woolworths, Kmart co-ownership Lutwyche, 139 23,49
Slide 18: Non-core asset disposals
Non-core asset disposals Abacus continues to successfully execute on its stated strategy to realise legacy exposures Non-core assets now represent 6% of total assets1 Land and mortgages – Continue to recycle capital from legacy investments – Refinanced or sold over $150 million of residential la
Slide 19: Sustainability – embedded in how we conduct business
Sustainability – embedded in how we conduct business Actively exploring opportunities Integration of ESG across the business to drive long term and managing risks sustainable growth Office portfolio NABERS Energy average of 4.26 stars (up from 4.1 stars at FY19) Solar installed Office portfolio
Slide 20: Summary & outlook
Summary & outlook
Slide 21: Outlook
Outlook Abacus following considerable effort and successful execution of a strategic repositioning is positioned as a strong asset backed, owner and manager with a focus on the Office and Self Storage sectors 87% of total assets1 deployed in key sectors of Office and Self Storage The size, natur
Slide 22: Questions
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Slide 23: Abacus Property Group FY20 Data Pack
Abacus Property Group FY20 Data Pack
Slide 24: Contents
Contents Abacus Property Group Overview 25 Financial Performance 26-31 Investment Portfolio 32-36 Developments 37 Glossary 38 Important information 39 24 Abacus Property Group | FY20 Data Pack
Slide 25: About Abacus
About Abacus Abacus Property Group (ASX:ABP), is a diversified Australian REIT with an investment portfolio concentrated in the Office and Self Storage sectors. We invest capital in real estate opportunities to deliver superior long term returns and maximise securityholder value. Abacus’ key focus i
Slide 26: Segment earnings
Segment earnings SELF PROPERTY COMMERCIAL OTHER FY20 TOTAL FY19 TOTAL STORAGE DEVELOPMENT Rental income 107.1 88.6 195.7 173.8 Finance income1 46.5 0.3 46.8 42.2 Fee income 5.0 5.0 8.4 Share of profit from equity accounted investments2, 3 6.5 0.8 2.4 9.7 13.4 Sale of inventory 8.8 6.6 15.4 47.8 Othe
Slide 27: Segment balance sheet
Segment balance sheet PROPERTY PROPERTY OTHER FY20 FY19 INVESTMENT DEVELOPMENT ($m) ($m) ($m) ($m) ($m) Commercial investment properties 1,612.2 1,612.2 1,221.0 Self Storage investment properties 1,040.7 1,040.7 841.5 PP&E, equity accounted and other investments, 282.9 0.5 61.6 345.0 274.4 financial
Slide 28: Net tangible asset reconciliation
Net tangible asset reconciliation FY20 FY19 Net assets 2,206.7 1,965.4 Less Total external non-controlling interest (5.0) (4.7) Total stapled securityholders’ interest in equity 2,201.7 1,960.7 Less Intangible assets and goodwill (32.4) (32.4) Deferred tax assets/liabilities (net) 1.9 5.3 Total net
Slide 29: Debt facilities
Debt facilities CAPITAL MANAGEMENT METRICS FY20 FY19 Total bank debt facilities $1,113m $1,048m Total bank debt drawn $974m $711m Term to maturity 3.9 yrs 5.3 yrs % hedged 48% 50% % hedged of total debt facilities 42% 34% Weighted average hedge maturity 2.3 yrs 2.6 yrs Average cost of debt – drawn 3
Slide 30: Debt maturity profile as at 30 June 2020
Debt maturity profile as at 30 June 20201 ($’m) 300 Available bank facility Commited bank facility Drawn bank debt 3.8 2.8 200 62.7 237.2 227.2 100 176.8 152.9 150.0 70.0 129.2 117.4 30.0 0 HY21 FY21 HY22 FY22 HY23 FY23 HY24 FY24 HY25 FY25 HY26 1. Includes post balance date facility limit increase o
Slide 31: Fixed hedging maturity profile as at 30 June 2020
Fixed hedging maturity profile as at 30 June 2020 (#039;m) Fixed Debt, Interest Rate Swaps & Collars 400 5.0% Weighted Average Fixed Rate 4.0% 300 3.0% 200 2.0% 100 1.0% 0 0.0% FY21 FY22 FY23 FY24 FY25 FY26 31 Abacus Property Group | FY20 Data Pack
Slide 32: Investment portfolio metrics
Investment portfolio metrics PORTFOLIO METRICS SELF INVESTMENT PORTFOLIO SECTOR DIVERSIFICATION OFFICE OTHER TOTAL FY20 STORAGE Industrial and Other Retail Value1 ($m) 1% 1,493 1,208 235 2,936 7% No. of assets 24 812 6 111 Office 51% NLA (sqm)3 148,670 383,010 71,960 603,640 Self Storage 41% WACR1 (
Slide 33: Commercial lease expiry profile
Commercial lease expiry profile Commercial lease expiry profile by rent 24% 16% 17% 12% 12% 12% 8% Short-term leases FY21 FY22 FY23 FY24 FY25 FY26+ 33 Abacus Property Group | FY20 Data Pack
Slide 34: Portfolio revaluations
Portfolio revaluations Revaluation process for Abacus resulted in a net decrease in the investment properties values for FY20 of $41.2 million Average cap rate across the Abacus Commercial1 and Self Storage portfolios were reduced to 5.68% and 6.58% from 5.90% and 6.91% from June 2019 respectively V
Slide 35: Self Storage metrics
Self Storage metrics PERFORMANCE METRICS AUS NZ FY20 FY19 PERFORMANCE METRICS FY20 FY19 Total Assets 66 15 811 701 Storage revenue 79.4 68.6 NLA (sqm) 304,980 78,030 383,010 320,901 Other revenue 9.2 7.9 Occupancy 88.0 88.7 88.12 88.42 Total revenue 88.6 76.5 Rental Rate (psm) A$281 A$282 A$2812 A$2
Slide 36: 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 56,250sqm of identified net lettable area to be developed over the short to medium-term Anticipated return1 on inv
Slide 37: Residential developments, land and mortgages
Residential developments, land and mortgages INTEREST PRIMARY PROJECT TYPE EQUITY LOAN TOTAL RETURNS RATE SECURITY RCL Portfolio NSW1 JV/Loan $45.8m $82.6m $128.4m 1st Mortgagee 50% profit share Doonside NSW Loan - $9.9m $9.9m 1st Mortgagee 50% profit share Investment Funding Portfolio NSW Loan - $3
Slide 38: Glossary
Glossary TERM DEFINITION TERM DEFINITION AIFRS Australian International Financial Reporting kW Kilowatt Standards BPS Basis points LFL Like for like CAGR Compound Annual Growth Rate NABERS National Australian Built Environment Rating system CPI Consumer price index NLA Net lettable area CPS Cents pe
Slide 39: 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