Finbar Group Limited · ASX:FRI
Finbar — Shareholder Meeting (October 2019)
53 slides from Finbar's shareholder meeting presentation, Oct 22, 2019
Slide 1: FY19 Annual Results Summary & Development Update
22 OCTOBER 2019 FY19 Annual Results Summary & Development Update For personal use only
Slide 2: Financials
For personal use only Financials 7
Slide 3: FY19 & Year to Date Highlights
FY19 & Year to Date Highlights For personal use only Finbar continues to cement Delivered a profit after tax of Completed Palmyra Apartments its position as Western Australia’s Completed two key developments, $11.37m, our 23rd year of largest apartment developer, Reva and Vue Tower that Estate (Stag
Slide 4: Net Profit
For personal use only ➢ $11.37m net profit. ➢ 23 consecutive years of profitability. $m 15 20 25 30 40 10 35 0 5 -5 Net Profit FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 NPAT FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Source: Finbar Group Ltd 9
Slide 5: Sources of Earnings FY19
Sources of Earnings FY19 For personal use only 95% Motive Linq Other Developments 6% 2% 1% Aire 7% Source of Development Earnings ➢ Core business of property Source of Vue development contributed to 95% of All Earnings Concerto 44% earnings. 11% ➢ Vue Tower, Reva, Aurelia, & Concerto were the larges
Slide 6: Operating Profit and Revaluations
Operating Profit and Revaluations For personal use only $50.0 $40.0 $30.0 $20.0 $m $10.0 $- FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 -$10.0 -$20.0 Operating Profit Revaluations Source: Finbar Group Ltd 11
Slide 7: Segment Contributions FY19
Segment Contributions FY19 For personal use only Development Rental Property Interest Revaluations Admin Profit Activity 25 20 15 $m 10 5 0 Positive Impact Negative Impact Source: Finbar Group Ltd 12
Slide 8: Corporate Administration Costs
Corporate Administration Costs For personal use only ➢ Administration costs overhead as Net Equity ($m) Administration Costs Admin Costs as % of Net Equity percentage of net equity is 2.7%. $250 5% ➢ Outsourcing model ensures company is scalable and efficient. 4% $200 Absorbed some functions into ex
Slide 9: Earnings Per Share & Dividends
Earnings Per Share & Dividends For personal use only 18 16 ➢ Fully franked dividend of $0.06 per 14 share attributable to the year. 12 Cents per share ➢ 109.5c in dividends to date. 10 Retained 8 Final 6 Interim 4 2 0 Source: Finbar Group Ltd 14
Slide 10: Cash Position
Cash Position For personal use only CASH $80 $70 ➢ Strong year end cash position of $45.5m. $60 ➢ Well positioned to fund working capital requirements and equity $50 contributions for new project $m commencements. $40 ➢ No debt on residual stock with $30 settlement cashflow to bolster working capita
Slide 11: Current Project Debt & Coverage
Current Project Debt & Coverage For personal use only Debt & Pre-sales Coverage $140 ➢ $81.7m in finance facilities were $81.7m repaid in FY19 and FYTD settlements $120 on completed projects. $100 ➢ No debt on residual stock. $80 REPAID REPAID REPAID ➢ Surplus presales coverage on remaining project
Slide 12: Review of Operations
Review of Operations For personal use only 17
Slide 13: Investment Properties
Investment Properties For personal use only FAIRLANES PELAGO 181 Adelaide Terrace East Perth 23 & 26 Sharpe Avenue Karratha ➢ 7,586 sqm office building ➢ 101 apartments & 21 commercial lots ➢ Leased to Broadspectrum, Finbar’s ➢ Leased to small business corporate office, smaller & predominantly offic
Slide 14: Investment Property Leasing
Investment Property Leasing For personal use only 100 7,000 ➢ Pelago Residential 100% leased. 80 6,000 ➢ Pelago Commercial 64% leased. 5,000 Commercial Sqm NLA Residential Apartments 60 ➢ Fairlanes Commercial 52% leased, 38% under 4,000 heads of agreement 40 3,000 Sources of All Earnings 2,000 20 1,
Slide 15: Investment Property Values & Gearing Profile
Investment Property Values & Gearing Profile For personal use only $100 ➢ Loan to Value Ratio across investment property is 39.8% $90 Equity $80 ➢ Facilities with Australian Major Debt Banks (CBA & NAB). $70 $60 $m $50 $40 39.8% LVR $30 $20 $10 $0 Fairlanes Pelago Total Source: Finbar Group Ltd 20
Slide 16: Sales & Market Activity
Sales & Market Activity For personal use only 21
Slide 17: Finbar – All Projects Sales per Month
Finbar – All Projects Sales per Month For personal use only TOTAL SALES NUMBER AND VALUE 90 $80 Millions 80 77 $70 74 70 $60 60 $50 50 45 $40 40 39 39 40 37 37 32 32 33 32 32 31 30 $30 28 28 28 29 29 30 26 26 27 27 26 25 22 22 23 22 23 23 23 19 20 20 19 19 18 $20 18 18 18 20 15 14 16 17 17 16 17 13
Slide 18: All Developments - Investor Sales vs Owner Occupier
All Developments - Investor Sales vs Owner Occupier For personal use only 160 Notes: 90.0% • Sales volume lower this calendar year (grey graph) 140 • Owner Occupier % continues to increase with investors % slowing 80.0% 70.0% 120 60.0% 100 50.0% 80 40.0% 60 30.0% 40 20.0% 20 10.0% 0 0.0% Q1 Q2 Q3 Q4
Slide 19: FIRB Sales
FIRB Sales For personal use only 120 Notes: • 18 FIRB sales this calendar year since introduction on foreign surcharge vs 98 same period last year 100 98 93 80 75 65 60 47 45 40 35 27 20 18 Introduction by WA State Govt – Foreign Buyers Surcharge Tax (7%) on 1 Jan 2019 0 2010 2011 2012 2013 2014 201
Slide 20: Finbar – All Projects Unsold Completed And Off-the-Plan
Finbar – All Projects Unsold Completed And Off-the-Plan For personal use only $450 • Sales notes this calendar year: Millions • Completed stock: Average $5.08m sales per month $400 • Off the plans stock: Average $4.5m sales per month • $96m in total sales this calendar $350 • Average $9.6m in sales
Slide 21: Pre-sales Book Value
Pre-sales Book Value For personal use only $600 SUBI Millions STRAND & TOCCATA $500 NORWOOD ARBOR AURELIA NORTH CONCERTO & AIRE UNISON ON MOTIVE $400 TENTH REVA LINQ $300 $103m IN ACCRUED PRE-SALES $200 $100 VUE PALMYRA $0 PROJECT $m COMPLETION AND SETTLEMENTS 26
Slide 22: Development Activity Update
Development Activity Update For personal use only Effective as at 22/10/2019 27
Slide 23: Completed Projects with Stock For Sale
Completed Projects with Stock For Sale For personal use only Effective as at 22/10/2019 28
Slide 24: Concerto, Adelaide Terrace, East Perth
Concerto 189 Adelaide Terrace, East Perth For personal use only Project: Concerto consists of 226 studio, one, two, and three bedroom apartments plus 1 commercial unit. Concerto is East Perth’s tallest residential building at 38 levels. Average price $825,773. ▪ Status: Construction Completed ▪ Owne
Slide 25: Motive, Railway Parade, West Leederville
Motive 172 Railway Parade, West Leederville For personal use only Project: Motive consists of 143 one and two bedroom apartments with an average price of $515,566. ▪ Status: Construction Completed ▪ Ownership: 50% JV with land owner ▪ Value: ~$73.7 million ▪ Completed: FY17 ▪ Sales: For Sale For Sal
Slide 26: Aurelia, Harper Terrace, South Perth
Aurelia 1 Harper Terrace, South Perth For personal use only Project: Aurelia consists of 118 one, two and three bedroom apartments plus 6 commercial units and 14 office spaces. Average price $967,868. ▪ Status: Construction Completed ▪ Ownership: 50% JV with land owner ▪ Value: ~$132.9 million ▪ Com
Slide 27: Aire West Perth, Murray Street, West Perth
Aire West Perth 659 Murray Street, West Perth For personal use only Project: Aire West Perth consists of 178 one, two and three bedroom apartments plus 64 serviced apartments as well as 2 ground floor commercial units. Average residential price of $494,110. ▪ Status: Construction Completed ▪ Ownersh
Slide 28: Reva, Harper Terrace, South Perth
Reva 5 Harper Terrace, South Perth For personal use only Project: Reva consists of 41 luxury one, two and three bedroom apartments plus 18 commercial lots of ground floor retail and level one office space. Average residential price of $800,625. ▪ Status: Construction Completed ▪ Ownership: Wholly ow
Slide 29: Vue Tower, Adelaide Terrace, East Perth
Vue Tower 63 Adelaide Terrace, East Perth For personal use only Project: Vue Tower consists of 245 one, two and 3 bedroom apartments plus 3 commercial units and 2 office units. Average residential price of $578,031. ▪ Status: Construction Completed ▪ Ownership: 50% JV with land owner ▪ Value: ~$147.
Slide 30: Palmyra East, McGregor Road, Palmyra
Palmyra East 49 McGregor Road, Palmyra For personal use only Project: Palmyra Apartments East Estate consists of 128 one, two and three bedroom apartments. Average price of $415,656. ▪ Status: Construction Completed ▪ Ownership: 50% JV with land owner ▪ Value: ~$53.2 million ▪ Est. Completion: FY19
Slide 31: Projects Under Construction
Projects Under Construction For personal use only 36
Slide 32: Sabina, Canning Highway, Applecross
Sabina 908 Canning Highway, Applecross For personal use only Project: Sabina is the first stage of the Canning Hwy development and consists of 164 one, two and three bedroom apartments, and 3 ground floor commercial lots. Average residential price of $714,052. ▪ Status: Under Construction ▪ Ownershi
Slide 33: One Kennedy, Kennedy Street, Maylands
One Kennedy 1 Kennedy Street, Maylands For personal use only Project: One Kennedy is the second stage to the Unison on Tenth development. One Kennedy consists of 123 one, two and three bedroom apartments plus 3 commercial lots. Average residential price of $430,349. ▪ Status: Under Construction ▪ Ow
Slide 34: Riverena, Rowe Avenue, Rivervale
Riverena 5 Rowe Avenue, Rivervale For personal use only Project: Riverena Apartments will consist of 125 one, two and three bedroom apartments. Average price of $410,949. ▪ Status: Under Construction ▪ Ownership: 50% JV through SPV ▪ Value: ~$51.3 million ▪ Est. Completion: Early 2021 ▪ Sales: Under
Slide 35: Development Approval Received
Development Approval Received For personal use only Effective as at 22/10/2019 40
Slide 36: Dianella Apartments, Chester Avenue, Dianella
Dianella Apartments 36 Chester Avenue, Dianella For personal use only Project: Dianella Apartments will consist of approximately 128 one, two and three bedroom apartments. ▪ Status: In Marketing. Launch Date: 2/11/19 ▪ Ownership: 100% through wholly owned subsidiary ▪ Value: ~$63.6 million ▪ Est. Co
Slide 37: Canning Highway Applecross
Canning Highway Applecross 910 Canning Highway & 3 Kintail Road, Applecross For personal use only Project: The Canning Hwy developments remaining two stages will consist of approximately 273 one, two, three bed apartments, and 6 ground floor commercial lots that will be developed over three stages.
Slide 38: The Point, Rowe Avenue, Rivervale
The Point 31 Rowe Avenue, Rivervale For personal use only Project: The Point will consist of 192 one, two and three bedroom apartments plus 9 ground floor commercial units to be constructed on 4,000m2 development site situated at the main entrance to the Springs precinct. ▪ Status: Development appro
Slide 39: Palmyra West, McGregor Road, Palmyra
Palmyra West 47 McGregor Road, Palmyra For personal use only Project: Palmyra Apartments West will consist of 132 one, two and three bedroom apartments. ▪ Status: Development approval received ▪ Ownership: 50% JV with landowner ▪ Value: ~$52 million ▪ Est. Completion: TBC ▪ Sales: Value ($m) Lots Fu
Slide 40: Projects In Planning and Design
Projects In Planning and Design For personal use only 45
Slide 41: Civic Heart, Mends Street, South Perth
Civic Heart 1 Mends Street, South Perth For personal use only Project: Civic Heart will consist of approximately 309 one, two, three bed apartments plus 2,600sqm of commercial space. ▪ Status: Currently on appeal at SAT ▪ Ownership: 50% JV with landowner ▪ Value: ~$300 million ▪ Est. Completion: TBC
Slide 42: Great Eastern Highway
239 Great Eastern Highway For personal use only Project: Entry level residential project currently in redesign. Approximately 92 residential lots plus 3 commercial. ▪ Status: New low rise scheme in design ▪ Ownership: Wholly owned through subsidiary ▪ Value: $38m ▪ Est. Completion: TBC ▪ Sales: Valu
Slide 43: Homelea Court, Rivervale
2 Homelea Court Cnr Rowe Avenue and Homelea Court, Rivervale For personal use only Project: 2 Homelea Court will consist of approximately 185 apartments within a 10 level building. The site is comprised of four vacant blocks totaling 3,770 square meters. ▪ Status: In planning ▪ Ownership: Wholly own
Slide 44: Lot 1000 Riversdale Road, Rivervale
Lot 1000 32 Riversdale Road, Rivervale For personal use only Project: Lot 1000 comprises 4,069 square metres of absolute waterfront land with expansive views of the Swan River, Stadium Precinct, and Perth CBD. Will consist of approximately 150 residential apartments. ▪ Status: In planning and design
Slide 45: Lot, The Springs, Hawksburn Road, Rivervale
Lot 888 The Springs 2 Hawksburn Road, Rivervale For personal use only Project: Lot 888 comprises of 2370 square meters of land within The Springs, Rivervale Precinct. For future development. ▪ Status: Office development approval received ▪ Ownership: 50% JV through SPV ▪ Value: $40m ▪ Est. Completio
Slide 46: Harmony, Adelaide Terrace, East Perth
Harmony 187 Adelaide Terrace, East Perth For personal use only Project: Harmony comprises the former ABC Radio Studios heritage building with a GFA of 3,711sqm over 3 levels. The Company is exploring reactivation options using exciting buildings. ▪ Status: In planning and design ▪ Ownership: Wholly
Slide 47: Project Pipeline - Summary
Project Pipeline - Summary For personal use only 350 300 250 200 150 100 50 0 Remaining Stock Value $m Sold Stock Value $m Source: Finbar Group Ltd 52
Slide 48: Cumulative Units Developed
Cumulative Units Developed For personal use only 9000 8000 7000 - 6112 units developed to date. 6000 - Additional 2167 units in secured pipeline. 5000 4000 3000 2000 1000 0 9798 99 00 01 03 04 05 07 08 09 1011 12 13 14 15 16 17 18 19 Source: Finbar Group Ltd 53
Slide 49: New Business Unit
New Business Unit Agenda Page Title For personal use only 54
Slide 50: Finbar to Rent
Finbar to Rent is a wholly owned subsidiary of ASX Listed company Finbar Group Limited and has been specifically established to provide the current and future owners of Finbar apartments with an exclusive property management service. Our primary goal is to make the ownership of your investment prope
Slide 51: Finbar to Rent – Residential
Finbar to Rent – Residential 250 For personal use only Number of Residential Properties Under Management 200 ➢ Established Finbar to Rent ➢ Property Management for any Finbar developed property since day 150 one (entering 25th year) ➢ Fixed rate management fees with free inclusions 100 ➢ Streamlined
Slide 52: Finbar to Rent – Commercial
Finbar to Rent – Commercial For personal use only 12000 SQM Commercial Under Management 10000 ➢ Took over previously externally managed Fairlanes Office and 8000 Pelago Commercial ➢ Additional revenue stream, management fees paid by tenant in 6000 outgoings 4000 2000 0 Oct 19 TD Oct 19 TD Source: Fi
Slide 53: Important Notice
Important Notice For personal use only Some of the information contained in this presentation may contain forward-looking revenue, timeline, and general statements that are subject to various risks, uncertainties, and changes. Forward-looking statements include those containing such words as ‘estima