Cromwell Property Group · ASX:CMW
Cromwell Property — H1 FY2007 Earnings Presentation
18 slides from Cromwell Property's earnings presentation, Mar 6, 2007
Slide 1: Cromwell Group Half-Year Update
Cromwell Group Half-Year Update « Cromwell ) March 2007
Slide 2: History - Cromwell Corporation
History - Cromwell Corporation 1.40 1.20 giao 0.80 080 hare price (AS) st 3 0.20 998 Recapitalised in 1998 with appointment of new Board Acquisition of first property in June 1999 with total assets under management now approximately $1.5 billion Management of 35 buildings with over 240 tenants throu
Slide 3: History - Merger & Stapling Transaction
History - Merger & Stapling Transaction CED Cromwell } * Completed December 2006 + CDPT merged with five Cromwell managed syndicates * Consolidated CDPT listed and stapled with CCL to create Cromwell Group i CROLL ; : oy @. CROMSNELL. DMEESIED ie CORPORATION LAAITER
Slide 4: Strategic Vision
Overview - Strategic Vision een To build a fully integrated property vehicle, with strong recurring income from core property assets and funds management activities and growth generated from the creation and promotion of retail, wholesale and speciaity funds.
Slide 5: Core Objectives
Overview - Core Objectives een « Growth of funds management revenues as proportion of total revenues (20-30%) + Increase suite of unlisted products + Increase wholesale fund inflows « Rebalance portfolio — possible asset sales or recycling of assets to unlisted funds « Acquisition of similar or add
Slide 6: Business Profile
Overview - Business Profile — Gz Cromwell } Property Investment + $1 billion in property assets, generating approximately 80% of FYO7 earnings * Strong acquisition pipeline through both listed and unlisted funds + 47%! gearing (net debt / total assets), aiming to reduce to approximately 40% by Jun 0
Slide 7: Key Strengths
Overview - Key Strengths * Streamlined structure with majority of earnings from stable property trust with concentration in office sector * Significant funds management eamings with demonstrated growth potential * Stable and experienced executive team with proven ability to grow AUM, FUM and earning
Slide 8: Directors
Overview - Directors + Strong and experienced core executive team with many years combined property and funds management experience + Recent appointment of two additional directors. (Michelle McKellar, David Usasz) + Expect to appoint Independent Chairman by Jun 2007 Paul Weightman ~ Chairman Execut
Slide 9: Directors
Overview - Directors Robert Pullar ~ Non-Executive Director Robert is a Director of Brisbane based property development company, Citimark Properties Ply Lid having previously been a partner at chartered accounting firm Douglas Heck and Burrell (now Pitcher Partners) specialising in property invesime
Slide 10: Senior Executives
Overview - Senior Executives isnennoner ac Michael Blake ~ institutional Markets Michael is responsible for managing relationships with national dealer groups, researchers and asset consultants. He previously held senior management roles at Zurich and HSBC Asset managemeni before joining Cromwell in
Slide 11: Overview - Property Portfolio
Per Cent ct Total Overview - Property Portfolio Incl CPF Excl CPF Number of properties 34 28 Total Asset Value $1.38 bn $1.03 bn NLA (m?} 568,872 472,264 Occupancy 97.4% 97.2% Weighted average lease expiry (by 54 years 5.5 years income) Governmentilisted tenants percent of 74% 72% income Cromwes Gro
Slide 12: Debt Management
Overview - Debt Management! EE Cromwell } — — Gearing (Net Debt / Total Assets)* 47% Cromuel Group RRM Profile Target gearing (FY07) 40% — — 90% Total debt facilities $637m Boom B som Drawn debt facilities $612m a Weighted average interest rate 6.27% ’ won oy Total debt facilities at fixed rates $33
Slide 13: High yield relative to peers
Overview — High yield relative to peers i Closing price 1 March of $1.16 Securities on issue of 696.5 million Market capitalisation of $808 million Effective yield of 7.75% pa with 9cps distributions Admitted to All Ords effective 16 March 2% 2007 5% . 2007 Dividend Yield Notes. 1. Sours: Reuters 2.
Slide 14: FY07 Financial Update
Overview - FY07 Financial Update ( cromvell) Cromwell } Acquired 5 additional assets during half-year. AUM increased by 11% to $1.52bn + Strong increases in ongoing funds management revenues * Stapling effective 19 December 2006. One-off cost of $6.95 million * Strong property revaluations. Increase
Slide 15: Outlook - FY07 Full Year Guidance
Outlook -— FY07 Full Year Guidance (Cromwell) aa tae On target for full-year forecast of $36m underlying profit before tax (5.2cps) Funds management revenues will be significantly higher in second-half Profit of $5m from sale of development property in second-half CPF to be deconsolidated
Slide 16: Outlook - FY08 and beyond
Outlook - FY08 and beyond (Cromwell) \Saeehananie Property Income: « Expected average rental increases of approximately 4% in FY08 « Only 8% of lease income expiring in FY08 Funds Management Income: « Cromwell Property Fund to remain core unlisted fund through FY08 + No asset sales performance fees
Slide 17: Outlook - Potential future re-rating
Outlook — Potential future re-rating (Cromwell) \Saeehananie High yield relative to peers Future EPS growth potential Future gearing reduction Index inclusion (S&P 200/300 and LPT)
Slide 18: Disclaimer
——— DISCLAIMER (Cromwell } This presentation was prepared by Cromwell Corporation Limited ACN 001 056 980 and Cromwell Property Securities Limited ACN 079 147 809, AFSL 238052. The information in this presentation contains some information relating to securities issued by Cromwell Corporation Limite
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