Vicinity Centres · ASX:VCX
Vicinity Centres — Federation Centres — Shareholder Meeting (October 2015)
30 slides from Vicinity Centres's shareholder meeting presentation, Oct 28, 2015
Slide 1: ASX cover letter: 2015 AGM addresses and presentation
28 October 2015 The Manager Company Announcements Office ASX Limited Level 4, Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, 2015 Annual General Meeting of Federation Centres Chairman’s address and CEO’s address and presentation Please find attached copies of the Chairman’s address
Slide 2: Chairman's address: a leading Australian retail property group
28 October 2015 2015 Annual General Meeting Chairman’s address and CEO’s address Chairman’s address Mr Peter Hay Chairman This meeting takes place as Federation Centres (ASX:FDC, the Group) embarks on an exciting new era following the merger of two great property companies to become one of Australia
Slide 3: Chairman's address: scale, balance sheet and strategic focus
Our company is the third largest A-REIT, and is represented in the ASX 30, giving us greater relevance to equity and debt investors, both domestic and offshore. Our assets sit across the full spectrum of retail sub sectors. In Australia, we are the number 1 owner/manager of both Sub Regional Centres
Slide 4: Merger synergies are on track and integration is progressing well
Merger synergies are on track and integration is progressing well The benefits to our securityholders of the merger are already starting to be delivered by our team, with the Group tracking well on achieving expected synergies and progressing integration tasks. As updated to the market in our 2015 a
Slide 5: Aggregate net property income growth improved
Aggregate net property income growth improved to 2.5% from 1.2% in the prior year. Moving annual turnover growth for specialty stores also improved to 30 June 2015, and this sales growth remained solid for the September 2015 quarter. These strong financial results reinforce the strategic rationale o
Slide 6: Cranbourne Park development completed in September 2015
Cranbourne Park development completed in September 2015 The $110 million redevelopment of Cranbourne Park, an asset half-owned by the Group, completed last month. The project increased the centre’s lettable area by more than a third to now total over 47,000 square metres of space. It included new Co
Slide 7: Focus areas for the balance of the financial year
Importantly, we have laid out the areas of focus needed to fully deliver the integrated business. For the balance of this financial year: We will continue to deliver on the cost synergies, and identify and implement new opportunities for growth We will significantly progress the integration. In
Slide 8: Contact: Media and Investors
Contact: Media Investors Brandon Phillips Penny Berger +61 3 9236 6321 +61 2 8229 7760 brandon.phillips@vicinity.com.au penny.berger@vicinity.com.au About Federation Centres (ASX:FDC) Federation Centres is one of Australia’s leading retail property groups. Following the merger with Novion Property G
Slide 9: 2015 Annual General Meeting
2015 Annual General Meeting 28 October 2015 Federation Limited (ABN 90 114 757 783) and Federation Centres Trust No. 1 (ARSN 104 931 928) Responsible Entity: Federation Centres Limited (ABN 88 149 781 322)
Slide 10: Chairman's address
Chairman’s address Peter Hay Cranbourne Park, VIC
Slide 11: Agenda
Agenda • Chairman’s address – Peter Hay • Board introduction • Business overview • Strategic focus • Merger update • CEO’s address – Angus McNaughton • FY15 results highlights • Retail environment • Development • FY16 focus • Chairman’s address (continued) – Peter Hay • FY16 guidance unchanged • Sha
Slide 12: The Board
The Board Peter Hay Richard Haddock AM Tim Hammon Peter Kahan Charles Macek Karen Penrose Wai Tang David Thurin Trevor Gerber1 Debra Stirling1 Angus McNaughton2 1. Alternate Director of Federation Limited. 2. It is intended that Chief Executive Officer, Angus McNaughton, will also be appointed as Ma
Slide 13: A leading Australian retail property group
A leading Australian retail property group • Scale and relevance across the $22b 99 spectrum of Australian retail property retail assets retail assets • Prudent capital management with under management under management a strong balance sheet Over Over • Value adding strategic partnerships 9,700 500m
Slide 14: The merged group's strategic focus remains unchanged
The merged group’s strategic focus remains unchanged Retail real estate • We will own, manage and develop Australian retail assets Portfolio enhancement • Ongoing asset recycling, refurbishment and redevelopment program • Focus on maximising centre appeal Operational excellence • Focus on high perfo
Slide 15: Merger synergies are on track and integration is progressing well
Merger synergies are on track and integration is progressing well • Over 60% of operational cost savings1 already locked in2 • Merger financing savings achieved1 with over $100m lower cost2 • Key operational teams are set • Corporate office co-location is largely complete • Key management policies a
Slide 16: CEO's address
CEO’s address Angus McNaughton Victoria Gardens, VIC
Slide 17: FY15 annual results highlights
FY15 annual results highlights Financials Development • Underlying earnings up 6.2%1 • Successfully completed Emporium Melbourne, • NTA up 5.2%1 Warnbro Centre and Cranbourne Park Stage 1 • Gearing of 28.0%2 • $922m of projects under construction (FDC share: $461m) across five key projects • Full ye
Slide 18: Retail environment
Retail environment Rising disposable income to drive household consumption Consumer sentiment and employment muted over the short-term 14% Household consumption 130 5% 12% Gross disposable income 120 Forecast income 3% Consumer sentiment index 10% 110 Chnage YoY Change YoY 8% 100 1% 6% 90 -1% 4% 80
Slide 19: Significant development pipeline totalling $3.0b
Significant development pipeline totalling $3.0b1 • Development pipeline provides significant benefits • Current projects in line with or ahead of expectations • Further 18 projects in early planning stage outside the identified pipeline Artist’s impression – Chadstone Shopping Centre, VIC 1. As at
Slide 20: Cranbourne Park development completed in September 2015
Cranbourne Park development completed in September 2015 • $110m project cost (FDC share: $55m) • New Coles and Target stores, refurbished Kmart, new mini majors, specialty tenants and amenities • Well received by community and trading above expectation • Project scope expanded to include refurbishme
Slide 21: Chadstone additional retail and office construction progressing well
Chadstone additional retail and office construction progressing well • $620m project cost (FDC share: $310m) • Creating a new world-class entertainment and luxury precinct • New Target store, five new flagship stores • First LEGOLAND® Discovery Centre in the Southern Hemisphere committed to 2,800 sq
Slide 22: Chadstone retail and office project
Chadstone retail and office project Site work on retail project New bus interchange open Office tower and car park deck Artist’s impression 14
Slide 23: Advanced project planning – Mandurah Forum
Advanced project planning – Mandurah Forum • $350m project cost (FDC share: $175m) • Major redevelopment proposed including centre refurbishment • New department store, Target store and additional specialty retailers Artist’s impression • New modern food court and alfresco dining area • Construction
Slide 24: Advanced project planning – The Glen
Advanced project planning – The Glen • $380m project cost (FDC share: $190m) • Major redevelopment including centre refurbishment • Relocated and upgraded department store • Creation of a ‘town square’ with restaurants and cafes • Expected to commence in FY17 Artist’s impression 16
Slide 25: FY16 key focus areas
FY16 key focus areas • Deliver forecast cost synergies, identify new cost and revenue opportunities to drive growth • Significantly progress integration • Progress extensive development pipeline and advance new opportunities • Extending the debt duration profile • Progress digital strategy • Recycli
Slide 26: Chairman's address (continued)
Chairman’s address (continued) Peter Hay QueensPlaza, QLD
Slide 27: FY16 guidance unchanged
FY16 guidance unchanged • FY16 underlying earnings guidance of 18.8 to 19.1 cents per security (underlying EPS)1 • inclusive of five asset sales (~$220m)2 which reduced underlying EPS guidance by ~0.3 cents per security • Payout ratio is expected to be 90% to 95% of underlying earnings 1. Subject to
Slide 28: Shaping the future of Australian retail
Shaping the future of Australian retail Increased portfolio scale and expertise • Total retail AUM of $22b and #1 owner/manager in Sub Regional and Outlet Centres, and #2 in Regional centres1 AUM Material value creation • Over 60% of operational cost savings2 already locked in • Financing savings ac
Slide 29: Contact details
Contact details Contact: Investors Media Penny Berger Brandon Phillips +61 2 8229 7760 +61 3 9236 6321 penny.berger@vicinity.com.au brandon.phillips@vicinity.com.au About Federation Centres (ASX: FDC) Federation Centres is one of Australia’s leading retail property groups. Following the merger with
Slide 30: Disclaimer
Disclaimer This document is a presentation of general background information about the activities of Federation Centres (ASX:FDC) current at the date of lodgement of the presentation (28 October 2015). It is not intended to be relied upon as advice to investors or potential investors and does not ta
Federation Centres — Shareholder Meeting (October 2015) on 6ix