Slide 1: Cairn Homes PLC
PLC | cairnhomes.com
Slide 2: Cairn Homes PLC 2015 Interim Results
CAIRN HOMES PLC 2015 INTERIM RESULTS 1
Slide 3: Disclaimer
Disclaimer This presentation document (hereinafter “this document” has been prepared by Cairn Home Plc (the “Company”). This document has been prepared in good faith, but the information contained in in it has not been subject to a verification exercise. No representation or warranty, express or imp
Slide 4: Contents
Contents 1. Operations 2. Financial Summary 3. Conclusion 4. Appendices 3
Slide 5: Key Operating Highlights
Key Operating Highlights • Successful IPO - raise of over €440m, including exercise of €40m over-allotment option • Completed acquisition of/contracted to acquire 9 sites (cost c. €131m, NDV €568.9m), including the 5 sites conditionally acquired as part of the IPO • Strong site pipeline, with detail
Slide 6: Key Economic Indicators
Key Economic Indicators PMI’s indicated that the gap between Ireland the rest of the euro area has widened Growth forecast changes 65.0 2015 2016 2017 60.0 Old New Old New New Consumption 2.6% 3.6% 2.6% 3.1% 3.1% Government 1.0% 3.2% 2.0% 2.3% 2.0% 55.0 Investment 12.5% 9.4% 14.0% 11.8% 9.0% Dom Dem
Slide 7: Contribution to economic growth
Key Economic Indicators 6% 1.5% Employment growth further strengthened in Q2 4.0% 3.0% Contribution to economic growth 5% 1.0% 2.0% 4% 1.0% 0.5% 3% 0.0% Quarterly Annual 2% 0.0% -1.0% -2.0% 1% -0.5% -3.0% 0% -4.0% -1.0% -1% -5.0% -1.5% -6.0% -2% Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 201
Slide 8: Housing/Rental Market
Housing/Rental Market Commencements 100% Completions 90,000 80% 80,000 60% YoY (trailing 12 months) ‘000’s (trailing 12 months) 70,000 40% 60,000 20% 50,000 0% 40,000 -20% -40% 30,000 -60% 20,000 -80% 10,000 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Dec-08 Aug-09 Dec-09 Aug-10 Dec-10 Aug-11 D
Slide 9: Current Sites/Pipeline
Current Sites/Pipeline Expected Total Cost Construction Location (€'000) NDV (€'000) Units Cost as % of NDV Start Date Parkside (Dublin North) 39,000 150,543 433 26% On Site Killiney (Dublin South) 5,800 16,868 20 34% On Site Butterly (Artane, Dublin North) 9,400 93,860 255 10% Q3 2016 Galway (Rahoo
Slide 10: Site Map
Site Map Donegal County Meath Sites • Moathill, Navan Monaghan Sligo Leitrim Cavan Mayo Louth Fingal Roscommon Longford Meath Galway Westmeath Dublin Dublin City North Dublin Sites County Galway Sites Offaly • Artane • Rahoon, Galway City Galway City Kildare • Balgriffin Laoighis Wicklow Clare DLR S
Slide 11: Parkside Update
Parkside Update • Acquired • Site cost €39m • Total area is c.50 acres • Full Planning for 166 units • Zoning potential for a total of 433 units • Estimated NDV is €150.5m • On-site - construction has commenced on Phase 1, with 36 units complete, 50 more under construction • End September formal sch
Slide 12: Albany Update
Albany Update • Acquired • Site cost €5.8m • Size 2 acres • Full Planning for 20 units • Estimated NDV is €16.9m • Construction is well advanced across the entire site • Launched planned in Q1 2016 on full site completion 11
Slide 13: Marianella, Dublin 6
Marianella, Dublin 6 • Contracted – completion in Sept. • Site cost €43m • Size 8.1 acres • Full planning for 211 units • Potential for 240 to 270 units • Estimated NDV is €135m • Expected construction start date is H1 2016 12
Slide 14: Barrington Tower, Dublin 18
Barrington Tower, Dublin 18 • Acquired • Site cost €20.7m • Size 9.1 acres • Existing planning for 158 units • Potential for 160 to 190 units • Estimated NDV is €89m • Estimated construction start date is Q1 2017 13
Slide 15: Ard na Glaise, Stillorgan, Co. Dublin
Ard na Glaise, Stillorgan, Co. Dublin 18 • Acquired • Site cost €5.45m • Size 2 acres • Zoned for residential development • Potential for 50 units • Estimated NDV is €22m • Expected construction start Q2 2016 14
Slide 16: Butterly, Artane, Dublin 5
Butterly, Artane, Dublin 5 • Acquired • Site cost €9.4m • Size c.8.2 acres • Mixed use zoning • Potential for 240 to 260 units • Estimated NDV is €94m • Expected construction start Q3 2016 15
Slide 17: Rahoon, Galway
Rahoon, Galway • Acquired • Site cost €5m • Size 10 acres • Zoned residential • Potential for 160 to 180 units • Estimated NDV is €44.7m • Expected Construction start Q2 2016 16
Slide 18: Moathill, Navan, Co. Meath
Moathill, Navan, Co. Meath • Acquired (subject to planning) • Site cost €1.6m • Size 10 acres • Zoned residential • Potential for 60 to 70 units • Estimated NDV is €16.8m • Expected construction start is Q1 2016 17
Slide 19: Key Industry Developments
Key Industry Developments There have been a number of positive regulatory/industry developments over recent months: • New vacant site levy of 3% on all vacant sites from 2018 – should have a positive impact on land availability • Percentage of land that must be provided for social housing be reduced
Slide 20: Key Financial Highlights
Key Financial Highlights • Inventories c. €134 million – adjusted for the impact of 2 sites on which contracts have been signed/deposits, but not have not yet closed • P&L Loss incurred to date principally reflects costs incurred as part of the acquisition of Emerley Holdings and limited salary/admi
Slide 21: HY 2015 Income Statement
HY 2015 Income Statement • Revenue arises on short term school rental on Parkside site and rent from From incorporation (12 Nov 2014) to 30 June 2015 Butterly tenants Before Exceptional Exceptional Items Items Total • Administration expenses arise €'000 €'000 €'000 principally on salaries, directors
Slide 22: Cash Flow
Cash Flow From incorporation (12 Nov 2014) to 30 June 2015 • Non cash expense relates to Emerley Total Holdings acquisition as per Income €'000 Statement Loss for the period (32,879) • Share based payments represents the Share based payment expense 29,101 Non cash expense in relation to acquisition
Slide 23: Conclusion
Conclusion • Economic factors continue to move in favour • Availability of development land improving • Strong pipeline • Competition remains severely restricted – NAMA, funding constraints, etc. – Cairn in direct negotiation with PE land owners • Advancing JV opportunities • Recognised need for mor
Slide 24: Appendices
CARN’ CAIRN... Appendices
Slide 25: Balance Sheet
Balance Sheet • Inventories represents 6 sites that have closed at Balance Sheet date 30-Jun-15 €'000 • Trade & Other Receivables principally Tangible Assets 3 represents VAT recoverable Inventories 85,644 • Deposits paid represent contract deposits paid on Marianella and Deposits paid 5,095 Stillor
Slide 26: Other Economic Indicators
Other Economic Indicators Core retail sales volumes are now accelerating 120.0 6.5 Rental yields have started to recover 6.0 115.0 5.5 Index 100 = 2005 (3MA) 110.0 5.0 % 105.0 4.5 100.0 4.0 95.0 3.5 90.0 3.0 Jul-09 Jul-14 Jun-07 Jun-12 Apr-08 Nov-07 Dec-09 May-10 Apr-13 Aug-11 Nov-12 Dec-14 May-15 J
Slide 27: Key Management
Key Management Alan McIntosh – Founder & Director of Michael Stanley – Founder & Chief Executive Business Development Officer Eamonn O'Kennedy – Finance Director Alan was a founder and director of Sun Following the demerger of Shannon Homes in Previously CFO of Independent News & Capital Partn
Slide 28: Key Management (ctd.)
Key Management (ctd.) Liam O’Brien – Chief Operating Officer Kevin Stanley – Chief Commercial Officer Brian Carey – Senior Acquisition Manager Liam was the Director of Development and Kevin was Sales & Marketing Director for From October 2012 to April 2015, Brian was Construction at Menolly Ho
Slide 29: Board of Directors/Exec Mgt
Board of Directors/Exec Mgt Non – Executive Directors Independent Non-executive Directors comprise more than half of the Board seats Non-executive Director of Computershare Investor Services (Ireland) Ltd John Reynolds Chief Executive of KBC Bank Ireland Plc from 2009 until 2013 Chairman Pre
Slide 30: Key Investment Themes
Key Investment Themes Demand / supply imbalance is at extreme levels and becoming more evident as economy recovers Demand It is estimated that c. 10,500 houses per year were completed in Ireland in 2014 vs. current demand of 22,000 – 27,000(1) per annum. In Dublin, there were c. 3,000 new build
Slide 31: Founder Share/Investment
Founder Share/Investment Founder The Founders invested c.€29m(1) in the Company investment − €19m(2) from equity value of the Parkside site (€39m site value and €20m of debt and other adjustments(3)), based on independent valuation performed by Knight Frank − Cash investment of €10m(4) The inves