Abacus Group · ASX:ABG
Abacus — FY2022 Earnings Presentation
39 slides from Abacus's earnings presentation, Aug 16, 2022
Slide 1: Abacus Property Group FY22 Results Presentation
Abacus Property Group FY22 Results Presentation 16 August 2022
Slide 2: Platform metrics FY22
Platform metrics FY22 TOTAL ASSETS A$5.4bn 433.2% on FY21 WEIGHTED AVERAGE CAP RATE 5.39%12 \v26bps on FY21 GEARING 28.7% 4620bps on FY21 STATUTORY PROFIT $517.2m 440.0% on FY21 1. Includes equity accounted investments 2, Commercial portfolio 5.33%, self storage portfolio 5.45% FFO 2 Abacus Property
Slide 3: FY22 highlights
FY22 highlights Abacus is a diversified Australian REIT with an investment portfolio concentrated in the commercial property and self storage sectors = Over $1.2 billion! deployed into key sectors during FY22 = Over $452 million of non-core divestments = Extension of interest rate hedging and debt m
Slide 4: Proforma balance sheet allocation
30 JUNE 2022 5 5 billion of | Total Assets? Commercial $2.6 billion 507 |RSS Self storage Office $1,997m “L)} Established? —$1,314m ‘D Retail $490m 4) Acquisitions! $489m fuat Other $124m — 4_} Stabilising® $504m 4} Others $332m 1. Includes post balance date transactions. 2. Includes investments in
Slide 5: Office portfolio takes shape
Office portfolio takes shape Material portfolio transformation with $2 billion’ now deployed across 18 office assets Market profile: Geography NABERS Energy Asset profile: Grade Asset profile: Life cycle NABERS ; Customer profile: Top 5 industries? Water | Customer profile: SME customers hy 1. Inclu
Slide 6: Abacus Sustainability Strategy
Abacus Sustainability Strategy Deliver long-term sustainable outcomes for our stakeholders V The engagement, wellbeing and development of our people to enable them to reach their true potential Increase efficiencies and reduce our impact by investing in smart solutions Everything we do and impact on
Slide 7: Sustainability — tracking our progress
Sustainability — tracking our progress rE 50” BY FY25 Diversion from landfill Net zero NET ZERO EMISSIONS BY 2050 (Scope 1 & 2) Diversion from landfill (%6) Public anes Progress Vv Of . 0.080 > () Scope 1+2 emissions @ NV 1 5 intensity (t/sqm) > 0.069 acs 2 BY FY25 (From FY19 base year) . ; 0.059 wi
Slide 8: Financial Metrics
Abacus Property Group Financial Metrics
Slide 9: FY22 key financial metrics
FY22 key financial metrics 1 9 KEY FINANCIAL FY22 AIFRS statutory profit $517.2m Funds from operations (FFO) $160.9m FFO per security 19.01c (WAV securities on issue) (846m) Distributions per security 18.00c Cashflow from operating activities $158.3m Note impact from elimination of Storage King (SK)
Slide 10: Balance sheet — FY22
Balance sheet — FY22 NTA per security up 12.2% to $3.85 Proforma! balance sheet gearing is 30.5%? KEY FINANCIAL METRICS Extension of debt maturity profile with no debt expiring in FY23 Increased interest rate hedging with 76%, 55% and 43% hedged in FY23, FY24 and FY25 respectively? NTA per security
Slide 11: Investment portfolio — valuation
Investment portfolio — valuation = The revaluation process for Abacus resulted in a net increase in investment property values for FY22 of $345.5 million — Gain of $305.2 million or 15.8% across the self storage average c portfolio with 77% of existing portfolio valuation gains cap rate derived from
Slide 12: Operating Performance
Abacus Property Group Operating Performance
Slide 13: Self storage — snapshot
Self storage — snapshot [fl Storage King Robina, QLD 13 Abacus Property Group | FY22 Results Presentation SELF STORAGE $2.6 billi % of total assets’) * Established portfolio? of $1.3 billion yielding 5.5% on an annualised basis on Pero Assets Value Net Lettable Area Occupancy Average rent psm RevPAM
Slide 14: Self storage — rent trends
Self storage — rent trends 13.0% average rent growth (FY22 vs. FY21) across the established portfolio’ Total established portfolio $370 $250 Jul Aug Sep Oct Nov Dec Jan ACT $390 $350 $310 oe $270 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun QLD $350 $310 $270 _ $230 Jul Aug Sep Oct Nov Dec Jan Fe
Slide 15: Storage King — update
Storage King — update STORAGE KING 193 Total stores 105 Abacus stores 88 Managed and licensed stores 1. Allstores. 2. For existing customers 73,000+ Customers! 3.5 years Average length of stay? 29% Commercial customers 15 Abacus Property Group | FY22 Results Presentation storage king 2
Slide 16: Self storage — portfolio additions
Self storage — portfolio additions ACQUISITIONS DEVELOPMENTS = Disciplined, acquisition strategy with a priority on = Over 19,500 sqm of net lettable area (NLA) delivered securing assets within high quality locations as per the during FY22: Abacus Network Strategy = over 13,000 sqm of NLA from new d
Slide 17: Self storage development pipeline
Self storage development pipeline’ Flexible development pipeline with mature occupancy expected 2-3 years from completion Estimated value on Spent to date? Cost to complete A completion $160m $160m $435m 86,000 sqm % NLA breakdown by market NLA development pipeline (sqm) Melbourne 40,000 Other 8% a
Slide 18: Commercial — office snapshot
Commercial — office snapshot ; Portfolio comprising of 18 assets diversified by market, asset grade, asset life cycle, customer industries and customer profile OFFICE $1.9 billion (37% of total assets’) 94.7% 8.2% Occupancy? LFL income growth? 3.8 yrs 5.15% WALE? WACR* 69 356 Leasing deals Customers
Slide 19: Commercial — office leasing metrics
Commercial — office leasing metrics LEASE EXPIRY PROFILE (BY INCOME) 46,892 sqm = 48% new leased in FY221 57% renewals 29% 31% on new deals average incentive 28% on renewals 7.8% 7.8% on new deals leasing spreads 7.7% on renewals 3.9% 96% fixed average rentreview 4% CPI $703 psm $816 average CBD? re
Slide 20: Commercial — office portfolio composition
Commercial — office portfolio composition Strategically invest in assets with a clear path to sustainable income growth FY18 FY22 Non-core 18% Mixed use 24% Core FY22 Core 49% $2.5B 76% ll Core office assets ll Mixed use assets @ Non-core assets ® Stabilised ™ Active management Mixed use 33% Develop
Slide 21: Commercial — office capability
Commercial — office capability Active asset management strategies delivering compelling value propositions for our customers 63 Ann St 14 Martin Pl 452 Johnston St Cal ASSET 7 End of Trip (EOT) Complete Upgrade in planning Complete - In planning a Flex Space - Complete Commenced Complete In planning
Slide 22: Commercial — retail snapshot
Commercial — retail snapshot 4 Portfolio comprising of two 50% owned centres, one 100% owned centre and a 33.3% share of a triple net lease asset as ne 3 ————_— RETAIL $490 million (10% of total assets") —— —— > 95.6% (1.7%) Occupancy LFL income growth? 6.2 yrs 5.99% WALE WACR 38 218 Leasing deals C
Slide 23: Commercial — capital transactions and developments
Commercial — capital transactions and developments API TRANSACTIONS = $713 million’ invested, including: - 77 Castlereagh Street, Sydney NSW — 100% interest acquired for $252 million, settled February 2022 — Myer Bourke Street, Melbourne VIC - 33.3% acquired for $135.2 million, settled July 2021 - 3
Slide 24: Summary and Outlook
Abacus Property Group Summary and Outlook
Slide 25: Outlook
Outlook h Abacus is positioned as a strong asset backed, annuity style A-REIT focused on the ownership and management of commercial and self storage real estate and operation of storage locations = We remain cautious on the outlook for direct and indirect impacts of: — interest rates — demand for se
Slide 26: FY22 Data Pack
Abacus Property Group FY22 Data Pack PROPERTY
Slide 27: Contents
Contents Financial Performance 28-34 Investment Portfolio 35-37 Glossary 38 Important information 89 27 Abacus Property Group | FY22 Results Presentation
Slide 28: Segment earnings
Segment earnings COMMER Rental income 136.9! 297.4 231.6 Finance income 2.9 8.2 Wa 15.14 Management and other fee income 2A 15.2 17.3 13.1 Share of profit from equity accounted investments” ° 94 94 7.5 Sale of inventory - 3.0 Other income 0.2 16.1 16.3 15.3 Total Revenue 151.2 191.8 8.2 351.2 285.6
Slide 29: Segment balance sheet
Segment balance sheet $ millions COMMERCIAL SELF STORAGE OTHER Investment properties 2,260.6 2,239.9 4,500.5 3,349.9 cea eee eee 208.2 2788 = sri 4089 Loans 53.1 53.1 67.9 Inventory - 48.1 Cash and cash equivalents 176.5 176.5 58.0 Goodwill and intangibles 73.0 32.6 105.6 106.3 Total assets 2,516.9
Slide 30: FY22 Balance sheet allocation
FY22 Balance sheet allocation 30 JUNE 2022 30 JUNE 2021 5 4 billion of 4 1 billion of = Total Assets! a Total Assets! Commercial Self storage Commercial Self storage $2.5 billion $26 billion °1% $2.0billion ” $1.8billion 49% E Office $1,903m ro Established? $1,314m | Office $1,646m ro Established? $
Slide 31: Net tangible asset reconciliation
Net tangible asset reconciliation $ millions FY22 FY21 Net assets 3,501.1 2,901.9 Less Intangible assets and goodwill (105.6) (106.3) Deferred tax assets/liabilities (net) 36.9 15.3 Total net tangible assets 3,432.4 2,810.9 Securities on issue 892.4 818.6 Net tangible assets per security 3.85 3.43 3
Slide 32: Debt facilities
Debt facilities Total bank debt facilities $2,058m $1,360m Total bank debt drawn $1,677m $960m Term to maturity 4.7 yrs 4.8 yrs % hedged 76% 47% % hedged of total debt facilities 62% 33% Weighted average hedge maturity’ 2.9 yrs 2.1 yrs Average cost of debt — drawn 2.1% 2.0% Average cost of debt — fu
Slide 33: Debt maturity profile as at June 2022
Debt maturity profile as at 30 June 2022 ($ millions) 400 5 300 ~ 200 + 100 5 165.0 “Available bank facility @ Drawn bank debt 83 Abacus Property Group | FY22 Results Presentation HY23 FY23 HY24 FY24 HY25 FY25 HY26 FY26 HY27 FY27 HY28 FY28 HY29 FY29
Slide 34: Fixed Debt, Interest Rate Swaps & Collars
Fixed Debt, Interest Rate Swaps & Collars ($ millions) Weighted Average Fixed Rate 1,500 10.0% 1,400 9.0% 1,300 1,200 8.0% 1,100 7.0% 1,000 900 6.0% 800 5.0% 700 600 4.0% 500 3.0% 400 300 2.0% 200 1.0% 100 0 0.0% Year 1 Year 2 Year 3 Year 4 Year 5
Slide 35: Investment portfolio metrics
Investment portfolio metrics PORTFOLIO METR' SELF RETAIL INVESTMENT PORTFOLIO SECTOR DIVERSIFICATION FY22 STORAGE OTHER Retail & Other 1 Value! ($m) 1,903 2,592 614 5,109 12% No. of assets 18 119° 6 143 Office 37% NLA (sqm)s4 114,317 550,449° 61,654 726,420 WACRI (%) 5.15 5.45 5.997 5.39 Self Storag
Slide 36: Self storage metrics
Self storage metrics PERFORMANCE METRICS AUS PERFORMANCE METRICS ($ millions) Number of assets 104 15 1191 93 Storage revenue 145.4 98.8 NLA (sqm) 472,631 77,818 550,449 442,942 Other revenue 15.1 12.5 Occupancy (%) 93.2 93.1 93,22 91.02 Total revenue 160.5 111.3 Rental rate (osm) A$323. A$325. = A$
Slide 37: Abacus store network FY22
Abacus store network FY22! ssunsune coast @ priseane ® coun coast erm ® enewcastie @ scentaaycoast @ * SYDNEY * WOLLONGONG / SOUTHERN HIGHLANDS canenra @ e © voeuave: REGIONAL iC @ meveourne @) Includes post balance date transactions. 37 Abacus Property Group | FY22 Results Presentation 2Sagnifeant
Slide 38: Glossary
Glossary TERM DEFINITION TERM DEFINITION AIFRS. Australian International Financial Reporting NLA Net lettable area Standards A-REIT Australian Real Estate Investment Trust NTA Net tangible assets CBD Central business district PP&E Property, plant and equipment CPI Consumer price index PS Per stapled
Slide 39: Important information
Important information The information provided in this document is general, and may not be suitable for the specific purposes of any user of this document. It is not financial advice or a recommendation to acquire Abacus Property Group securities (ASX: ABP). Abacus Property Group believes that the i