Cromwell Property Group · ASX:CMW
Cromwell Property — Shareholder Meeting (November 2014)
30 slides from Cromwell Property's shareholder meeting presentation, Nov 26, 2014
Slide 1: Cromwell Property Group – 2014 Annual General Meeting
For personal use only Cromwell Property Group – 2014 Annual General Meeting 1
Slide 2: Important Information & Disclaimer
Important Information & Disclaimer For personal use only This presentation including its appendices (“Presentation”) is advice as they deem necessary or consider appropriate for securities. To the extent that general financial product advice dated 26 November 2014 and has been prepared by the their
Slide 3: Directors
Directors For personal use only Geoffrey H Levy, AO Paul Weightman Daryl Wilson Richard Foster Robert Pullar Chairman Executive Director Executive Director Non-Executive Non- Executive Chief Executive Officer Director Director David Usasz Michelle McKellar Marc Wainer Michael Watters Non-Executive N
Slide 4: Meeting Agenda
Meeting Agenda For personal use only Open Chairman’s Address CEO’s Address Business Cromwell Property Group – 2014 Annual General Meeting 4
Slide 5: Chairman's Address
For personal use only Chairman's Address Mr Geoffrey H. Levy, AO Cromwell Property Group – 2014 Annual General Meeting 5
Slide 6: Recycling Capital For Future Growth
Recycling Capital For Future Growth For personal use only Sale of 6 assets in FY14 for $253m, plus sale of 321 Exhibition St for $206m post balance date Assets have delivered good returns, but expected future returns were below required hurdle rate Cap ta recycled Capital ecyc ed to co-investm
Slide 7: Consistent Execution of Strategy
Consistent Execution of Strategy For personal use only Active Asset Management Additional capital available through continued recycling of non-core assets t FY13 FY14 Change Continued sale of assets which are not expected to meet Statutory profit ($'000) 46,156 182,471 295% hurdle rates Statutor
Slide 8: Cromwell's key points of difference
Cromwell’s key points of difference For personal use only Produce value from our Actively manage our Gear intelligently through funds management portfolio the property cycle business Cromwell Property Group – 2014 Annual General Meeting 8
Slide 9: Election of new board members
Election of new board members For personal use only Andrew Konig Mr Konig has more than 20 years of commercial and financial experience, including 10 years as the Group Finance Director at Independent News & Media [South Africa] Limited and R d fi P Redefine Properties ti Li Limited. it d H He iis c
Slide 10: CEO's Address
For personal use only CEO's Address Mr Paul Weightman Cromwell Property Group – 2014 Annual General Meeting 10
Slide 11: Operating Earnings Per Security Increased by 12%
Operating Earnings Per Security Increased by 12% For personal use only Statutory profit increased 295% to $182.5m Operating earnings increase derived from a number of factors: Operating profit1 increased by 43% to a record Accretion from FY13 acquisitions $146.7m Increase in like for like
Slide 12: Portfolio improvement
Portfolio improvement For personal use only Sale of 7 assets, including 321 Capital recycled to co-invest in Exhibition Street, for $458m $278m Northpoint Tower Acquisition Sale IRR Propertyy Stats Date Proceeds Achieved 321 Exhibition St, VIC Sept 2010 $205.9m 14.7% Address: 100 Miller Street,
Slide 13: Property Portfolio Remains Robust
Property Portfolio Remains Robust For personal use only Geographic Diversification1 Sector Diversification1 Tenant Classification1 1.1% 2.4% 1.2% ACT 7.5% 19.2% 19.4% 2 NSW Government Authority QLD Office 26.3% Listed VIC Retail 50.8% Company/Subsidary p y/ y TAS 29.8% Private Company 43.5% SA 98.8%
Slide 14: Property Portfolio – Movement In Book Value
Property Portfolio – Movement In Book Value For personal use only Portfolio significantly improved through acquisitions since 2010 I In-sourced d ffacilities iliti managementt model d lddelivers li consistently i t tl llow lif lifecycle l capex Average 0.24% of valuation over past 5 years FY14
Slide 15: Lease Expiry Profile
Lease Expiry Profile For personal use only WALE of 5.9 years Lease Expiry Profile % Gross Income Vacancy 2 2.4% 4% vs vs. CBD office average of 12 2%3 12.2% 45.0% 40.9% Expiry profile cushioned against current soft conditions 40.0% Average fixed review of 3.1% over 49% of 35.0% portfolio in
Slide 16: Capital Management – Transforming Debt Platform
Capital Management – Transforming Debt Platform For personal use only Successfully completed the refinancing of 7 debt facilities Managing gearing appropriately is a key capital into 1 new platform management initiative Common terms Gearing reduced before peak of property cycle via One sec
Slide 17: Weighted Average Debt Expiry Extended To 3.9 Years
Weighted Average Debt Expiry Extended To 3.9 Years For personal use only Diversified across 8 lenders with varying maturity dates No maturities until June 2015 Weighted average debt expiry of 3.9 years Debt Expiry p y Profile1 $600M $19M $44M $500M $50M Australian Major Banks $400M $110M Other
Slide 18: Lowering Interest Rates
Lowering Interest Rates For personal use only Targeting lower interest rates again in FY15 Weighted average hedge term of 4.7 years Weighted average margin of 1 1.6% 6% on current Extended with long-term long term cap in August 2014 facilities1 High degree of certainty over interest expens
Slide 19: Funds Management – External AUM now $1.3bn
Funds Management – External AUM now $1.3bn1,2 For personal use only Unlisted Property Trusts Property Securities (Phoenix Portfolios) Cromwell Property Trust 12 launched in October 2013 Increase in AUM to over $559m and closed over-subscribed in April 2014 D Demand d growing i ffrom llarge
Slide 20: Outlook – Continued Focus on CBD Office
Outlook – Continued Focus on CBD Office For personal use only We still prefer commercial office property Prime vs. Secondary Office Yields Significant demand for property with long leases 10.00% Demand for core CBD expanding to include near 9.50% Secondary CBD Office Yields city and suburban l
Slide 21: Consistent Strategy Delivers Consistent Outperformance
Consistent Strategy Delivers Consistent Outperformance For personal use only Cromwell Performance June 2014 Direct Property Returns (Annualised Total Securityholder Return)1 (to 30 June 2014 Annualised) 35.0% 32.9% 14.0% 30.8% 11.6% 30.0% 12.0% 10.8% 10.3% 24 5% 24.5% 24.9% 9.9% % Cromwell 25.0% 22.
Slide 22: Voting Cards
Voting Cards For personal use only Yellow Y ll cardd Blue cardd Bl Green card Voting card Non-voting attendee card Visitor card Cromwell Property Group – 2014 Annual General Meeting 22
Slide 23: Items of Business
For personal use only Items of Business Cromwell Property Group – 2014 Annual General Meeting 23
Slide 24: Consideration of the Financial, Directors' and Auditor's Reports
Item 1 For personal use only Consideration of the Financial, Directors’ and Auditor’s Reports – This is not the subject of a formal resolution and no proxies apply Cromwell Property Group – 2014 Annual General Meeting 24
Slide 25: Remuneration Report
Item 2 For personal use only Remuneration Report “Th t th “That the C Company’s ’ RRemuneration ti R Reportt for f the th financial fi i l year ended d d 30 JJune 2014 iis adopted.” d t d” % of proxies Number received For 631,409,971 85.90 Open 16,753,170 2.28 Against 86,874,903 11.82 Abstain 7,430,
Slide 26: Re-election of Mr Geoff Levy as a Director
Item 3 For personal use only Re-election of Mr Geoff Levy as a Director “Th t Mr “That M Geoff G ff LLevy, whoh retires ti bby rotation t ti iin accordance d with ith th the C Company’s ’ CConstitution tit ti andd offers himself for re-election, is re-elected as a Director of the Company.” % of prox
Slide 27: Election of Ms Jane Tongs as a Director
Item 4 For personal use only Election of Ms Jane Tongs as a Director ” That Th t Ms M Jane J Tongs, T who h is i eligible li ibl and dhhaving i offered ff d hherself lf ffor election, l ti iis elected l t d as a director of of the Company.” % of proxies Number received For 735,490,687 97.58 Open 17,
Slide 28: Election of Mr Andrew Konig as a Director
Item 5 For personal use only Election of Mr Andrew Konig as a Director ” That Th t Mr M Andrew A d Konig, K i who h iis eligible li ibl and dhhaving i offered ff d hi himselflf ffor election, l ti iis elected l t d as a director of the Company.” % of proxies Number received For 725,138,526 96.20 Ope
Slide 29: Questions
For personal use only Questions Cromwell Property Group – 2014 Annual General Meeting 29
Slide 30: Thank you for your time
For personal use only Thank you for your time Cromwell Property Group – 2014 Annual General Meeting 30
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