Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — FY2022 Earnings Presentation
39 slides from Cedar Woods Properties's earnings presentation, Aug 25, 2022
Slide 1: FY22 Financial Results
FY22 FINANCIAL RESULTS CEDAR WOODS
Slide 2: Agenda
; | 1. About cedGRiwed 2. Fiona al Reais = 3. Market Conditins Maia ie ZA. Our Portfolidl il 5. Outlook Glenside, SA
Slide 3: Williams Landing, VIC
‘Williams tanding, VIC es
Slide 4: ASX listed property company; market cap. of ~$370m
◼ ASX listed property company; market cap. of ~$370m ◼ Products: land estates, townhouses, apartments & commercial ◼ 10,300+ lots in pipeline; ◼ 34 projects across VIC / SA / WA / QLD ◼ Quality & sustainability feature strongly across projects ◼ Excellent long term track record in growing earnings &
Slide 5: Purpose, Vision & Values
PURPOSE Our purpose is to create PURPOSE long-term value for shareholders through the Purpose, Vision & development of vibrant communities. Values inform every decision we make, guide our conduct internally & our relationships with our VISION staff business partners, customers VISION Our vision is t
Slide 6: Grow national project portfolio diversified by geography, product type & price point
Good geographic spread of well-located projects in 4 states PURPOSE Our purpose is to create To grow our national project long-term value for shareholders through the development of vibrant portfolio, diversified by geography, communities. product type & price point, so that it Range of housing lots
Slide 7: Acquisitions, Development, Marketing & Sales
Acquisitions Development Marketing & Sales Disciplined approach Research, design, Integrated approach to to property acquisitions: planning & delivery: optimise results: • Tactical & research-based decisions to • Sustainable designs that optimise quality, • Positioning projects to maximise demand id
Slide 8: FY22 Progress: Financial Strength, Earnings Growth, Operational Excellence
FY22 PROGRESS Financial Strength Continued support from our 3 banks with facilities increased & Optimising performance through disciplined capital extended; Gearing in the middle of target range; Significant facility management, a commercial focus, cost minimisation & headroom & long secure tenure m
Slide 9: Continued implementation of revised ESG strategy & reporting in FY22
◼ Continued implementation of revised ESG strategy & reporting in PURPOSE FY22 Our purpose is to create long-term value for shareholders through the ◼ Implementing initiatives to better development of vibrant understand carbon emissions & communities. reduce climate impact of our projects & operatio
Slide 10: The Brook at Byford WA
The Brook at Byford WA
Slide 11: Net Profit, Presales and Key Results
NET PROFIT NET PRESALE AFTER TAX SALES CONTRACTS $37.4m FY2020 FY2021 FY2022 TOTAL REVENUE 1108 lots $500m $333.0m FY2020 FY2021 FY2022 Lots / homes / offices sold Up $22m on pcp EARNINGS PER SHARE SETTLEMENTS RETURN ON EQUITY 45.7c FY2020 FY2021 FY2022 FULL YEAR DIVIDENDS 27.5c FY2020 FY2021 FY2022
Slide 12: Balance sheet 30 Jun 2022 vs 30 Jun 2021
30 Jun 2022 30 Jun 2021 Total assets (book value) $779.8m $651.8m Net assets (equity) $421.2m $400.4m Net tangible assets per share (book value not market value) $5.13 $4.92 Net bank debt $198.7m $113.3m Net bank debt to total tangible assets (less cash) 25.6% 17.6% Net bank debt to equity 47.2% 28.
Slide 13: Strong liquidity position
OPERATING CASH FLOW BEFORE LAND ACQUISITIONS ◼ Strong liquidity position ◼ Strong operating cash flow produced by the business before acquisitions ($87.7m in FY22) ◼ Undrawn facility headroom of $87.8m MILLIONS ◼ Excess of current assets over current liabilities of $74.0m ◼ Invested $153.5m in new l
Slide 14: Williams Landing, VIC
Williams Landing, VIC
Slide 15: Sound fundamentals - record low unemployment, population growing, supply constrained
◼ Sound fundamentals - record low unemployment, population growing, supply constrained ◼ Rising interest rates & inflationary pressures are currently impacting demand with lower sales volumes in Q4 FY22 & the potential for this to persist over FY23 in some states ◼ Households are in a strong positio
Slide 16: 60% of Australia's population growth comes from net overseas migration
◼ 60% of Australia's population growth comes from net overseas migration (NOM) providing a tailwind for new housing as it returns ◼ NOM was ~240k pa pre covid, generating significant housing demand ◼ September Federal Jobs & Skills Summit likely to result in improved migration settings in response t
Slide 17: Dwelling commencements Q1 CY22 reflected 11% drop in standalone houses
◼ Dwelling commencements Q1 CY22 (49,017) reflected an 11% drop in standalone houses ◼ Many approved projects aren’t being delivered due to construction sector capacity limitations & costs ◼ Development finance availability is also restricting supply ◼ Rental vacancy rates nationally at very low lev
Slide 18: Millars Landing, WA
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Slide 19: Portfolio by location
PORTFOLIO BY PRESALES BY PRESALES BY LOCATION LOCATION PRODUCT TYPE # lots/homes/offices # lots/homes/offices # lots/homes/offices Commercial SA 5% WA SA WA 12% Townhouses Land 17% 54% 22% 18% 55% QLD 15% QLD 11% 19% 22% VIC 50% Apartments VIC State Lots/Units * % State Lots/Units % Product Lots/Uni
Slide 20: Solaris, WA
20 Solaris, WA
Slide 21: WA: 13 projects, more than 5,500 lots / dwellings
◼ 13 projects, more than 5,500 lots / dwellings ◼ Projects catering for a range of buyer types ◼ Land subdivision, townhouses & apartments ◼ 3 new projects secured - Rockingham, Eglington & Henley Brook as extension of Ariella Private Estate. ◼ Price growth low to moderate across various estates ◼ S
Slide 22: Ariella, WA: 1,150+ lot masterplanned community
◼ 1,150+ lot masterplanned community projects ◼ Additional land acquired in 2019 & 2022. ◼ 18 km north east of Perth CBD ◼ 500+ lots remaining - including Henley Brook ◼ Trading at 100 settlements pa. ◼ 15% price growth in last 12 months ◼ Strong presence of first homebuyers ◼ Investor interest has
Slide 23: Eglinton, WA: 86 hectare site
◼ 86 hectare site in Perth’s north-west growth corridor ◼ Located 500 metres from the new Eglinton train station (to open in 2023). ◼ 1200 lots to be delivered in several neighbourhoods. ◼ Will include residential neighbourhoods, primary school, commercial hub & open space ◼ Expected to contribute t
Slide 24: Williams Landing, VIC
24 Williams Landing, VIC
Slide 25: Victoria: 11 projects
◼ 11 projects (Currently 4 at Williams Landing) ◼ More than 1,900 lots / dwellings / offices + 17 hectares of commercial / apartment sites ◼ Land subdivision, townhouses, apartments & commercial projects ◼ Range of price points and buyer types ◼ Strong enquiry and sales across Victorian land project
Slide 26: Williams Landing: major masterplanned community with mixed use town centre
◼ Major masterplanned community with mixed use town centre; 3000 homes across several neighbourhoods ◼ 8-9 year project life remaining ◼ Over 15 sites with planning approval ready to be developed for apartments, townhouses, offices, education & retail ◼ Actively bidding for single tenant office oppo
Slide 27: Wollert: 800+ lot estate
◼ 800+ lot estate in high performing suburb of Wollert ◼ 26 km north of Melbourne CBD ◼ 200+ pre-sales achieved since launch in 2021 ◼ Significant price growth since launch ◼ Construction underway for first three stages ◼ First settlements in H2 FY23 Wollert, VIC
Slide 28: Ellendale, Upper Kedron, QLD
28 Ellendale, Upper Kedron, QLD
Slide 29: Queensland: 5 projects
◼ 5 projects ◼ More than 1,500 lots / dwellings ◼ Land estates, townhouses & apartments ◼ Notwithstanding strong market conditions experienced in FY22, ongoing challenges in Queensland’s construction sector has resulted in project delays ◼ Increased the pipeline with the conditional Heritage Park ac
Slide 30: Ellendale: masterplanned community with ~900 residential lots
◼ Masterplanned community with ~900 residential lots ◼ Located 12km northwest of Brisbane CBD in suburb of Upper Kedron; adjacent to national park ◼ Approximately 50% complete ◼ Significant presales with strong profit margins Ellendale, Upper Kedron, QLD
Slide 31: Sage, Burpengary: over 300 residential lots
◼ Masterplanned community with over 300 residential lots ◼ Located 40km north of Brisbane CBD in suburb of Burpengary ◼ Planning approval received ◼ Launch to market Q1 FY23 ◼ Provides price point diversity in Queensland portfolio Sage, Burpengary, QLD
Slide 32: Fletcher's Slip, SA
Fletcher’s Slip, SA
Slide 33: South Australia: 5 well located projects
◼ 5 well located projects (including 3 projects at Glenside & 2 at Fletcher’s Slip) ◼ More than 1,200 townhouses & apartments remaining ◼ Projects have strong sustainability credentials ◼ High performing projects with demonstrated demand 33
Slide 34: Glenside, SA: 17 Ha, 3km from Adelaide CBD
◼ 17 Ha, 3km from Adelaide CBD ◼ 1,000+ townhouses & apartments ◼ Monarch apartments 100% sold and under construction ◼ Banksia apartments 40% sold ◼ New releases in the coming weeks to meet significant demand Glenside, SA
Slide 35: Fletcher's Slip, SA: 14 km north-west of the CBD
◼ 14 km north-west of the CBD ◼ 500+ townhouses & apartments ◼ First stage townhouses recently settled ◼ Adjacent to train station & harbour, walking distance to the beach & shops ◼ Significant enquiry and sales recorded ◼ ‘Sirocco’ apartments to commence construction late 2022. Fletcher’s Slip, SA
Slide 36: Rivergum, WA
Rivergum, WA
Slide 37: Projects by anticipated year of first earnings
FY2023 Future years ▪ Incontro townhouses, WA ▪ Incontro apartments, WA ▪ Lincoln apartments, VIC ▪ Fieldstone residential land, VIC ▪ Aster apartments, VIC ▪ South Bank apartments, VIC ▪ Mason Quarter residential land, VIC ▪ Williams Landing town centre apartments, offices & commercial, VIC ▪ Burpe
Slide 38: Outlook: sound fundamentals, growth in earnings expected in FY2023
◼ Sound fundamentals of low unemployment, job security & wage growth, however rising interest rates are impacting sentiment ◼ Short & sharp interest rate cycle expected with peak around end 2022 REVENUE & PRESALES 400 ◼ Presence in relatively affordable markets (Qld, WA & SA), which are 350 expected
Slide 39: Disclaimer
While every effort is made to provide complete and accurate information, Cedar Woods Properties Limited does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. Subject to any terms implied by law and which cannot
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