Abacus Group · ASX:ABG
Abacus — Shareholder Meeting (November 2016)
21 slides from Abacus's shareholder meeting presentation, Nov 14, 2016
Slide 1: 2016 Annual General Meeting
Artist’s impression of Ashfield Mall residential development, Sydney NSW ‘Its all about the property’ Abacus Property Group 2016 Annual General Meeting Abacus Property Group - 2016 Annual General Meeting
Slide 2: 2016 financial summary
2016 financial summary 14 Martin Place, Sydney NSW Statutory profit Underlying profit Net tangible asset $186 million $124 million $2.66 per security Up 39% Down 3% Up 6.8% 710 Collins Street, Melbourne VIC Underlying earnings Recurring earnings Distributions 22.4 cps 18.0 cps 17.0 cps World Trade C
Slide 3: Strength and opportunity
Strength and opportunity Abacus has a strong balance sheet Balance sheet remains conservative and gearing remains low at 25.8% Below targeted limits of up to 35% Acacia Ridge, Brisbane QLD 1A Residential project, Erskineville NSW Interest cover ratio of 4.2x We maintain high levels of liquidity so
Slide 4: Reaffirmation of investment strategy
Reaffirmation of investment strategy We are a long term investor in real estate assets We look for mispriced assets that represent fundamental value SPICE apartments, Brisbane QLD We add value through active management We see value in a diversified business that is invested across targeted sectors
Slide 5: Shifting to more recurring style earnings
Shifting to more recurring style earnings Capital has been deployed to provide an Balance sheet allocation appropriate rate of return throughout the cycle $2.7bn Targeted transition of balance sheet allocation ~10% over the next 2 to 4 years $2.2bn Property Ventures $500 Transition to be funded from
Slide 6: Upgrade to FY17 DPS and distribution strategy
Upgrade to FY17 DPS and distribution strategy We focus on delivering a stable distribution supported by recurring earnings which securityholders can rely on Growth in distributions will Improving levels of recurring earnings over be underpinned by recent years, and our targeted asset allocation cont
Slide 7: Building long term returns - Office
Its all about the Property Building long term returns - Office 484 St Kilda Road, Melbourne VIC Acquired for $68 million in joint venture with Heitman LLC Outstanding core plus opportunity within the office sector at that time in the market High quality building - one of the best office assets
Slide 8: Building long term returns – Self-storage
Its all about the Property Building long term returns – Self-storage Rouse Hill facility, Sydney NSW 2.1ha site with c.6.,827m2 industrial/commercial GFA acquired for $8.5 million ($1,200psm) Split into two tenancy areas providing opportunity to immediately convert one tenancy to self-storage wh
Slide 9: Building long term returns - Retail
Its all about the Property Building long term returns - Retail Birkenhead Point Shopping Centre and Marina, Sydney NSW Acquired in 2010 for $174 million in joint venture with the Kirsh Group Partially refurbished, it presented strong redevelopment potential Abacus developed asset into Australi
Slide 10: Building long term returns - Industrial
Its all about the Property Building long term returns - Industrial Browns Road, Clayton Melbourne VIC Virginia Park, East Bentleigh, Melbourne VIC Acquired for $19.6 million in May 2013 Acquired 50% interest in 2006 for $37.5 million in joint venture 10 year, triple net, sale and lease back to
Slide 11: Building long term returns – Third Party Capital
Its all about the Property Building long term returns – Third Party Capital Capital partnering since 2010 Sector Price1, A$ Since partnering with sophisticated third party capital investors we have transacted over $1.6 billion of Birkenhead Point, Drummoyne NSW Retail 174,000,000 acquisitions 350 Ge
Slide 12: Building long term returns – Third Party Capital
Its all about the Property Building long term returns – Third Party Capital 182–198 Maidstone Street, Altona VIC Abacus has had a long history of partnering with other investors Many relationships have been forged over more than two decades and have lasted the distance These relationships provide ou
Slide 13: Operational updates - Residential
Its all about the Property Operational updates - Residential Artist’s impression of 548-568 Canterbury Rd, Campsie NSW Campsie: Site one sold in September 2016 for $49.5 million - c. $140,000 a unit Site two: Approved for 83 units with a further 19 units possible due for exchange under same pricing
Slide 14: Operational updates - Residential
Its all about the Property Operational updates - Residential The Prince, Canberra ACT Riverland, Milperra NSW Received NSW state government gazettal for the residential rezoning of stage one of its residential land sub-division in October 2016 The gazettal approved the rezoning of the first stag
Slide 15: Strong securityholder value proposition
Strong securityholder value proposition Artist Impression of residential development Hawthorn VIC Residential projects are held at the lower of cost or net realisable value The carrying value of residential projects are reviewed and impairment tested at each reporting date Current cost base and tran
Slide 16: Outlook
Outlook Property sector remains highly priced while the market is rampant with capital The need to deploy capital desensitises investment decisions or as Boston Fed President Eric Rosengren warned: ‘one cost of the lower for longer interest rate cycle involves the potential to Remuera self-storage f
Slide 17: Business of the meetings
Business of the meetings Abacus Property Group - 2016 Annual General Meeting 17
Slide 18: Resolutions
Resolutions Resolution 1 To receive and consider the annual financial report, directors’ report and auditor’s report of Abacus Property Group and its controlled entities for the year ended 30 June 2016 Resolution 2 To adopt the Remuneration Report for the year ended 30 June 2016 Resolution 3 That Jo
Slide 19: Proxy results
Proxy results Resolutions FOR OPEN AGAINST 466,356,726 1,155,094 16,338,627 Adoption of remuneration report 96.4% 0.2% 3.4% 462,140,059 3,358,690 21,088,329 Re-election of John Thame as a Director 95.0% 0.7% 4.3% Approval of SARs to Managing Director Dr 463,990,532 1,152,405 18,789,351 Frank Wolf 95
Slide 20: Questions
Questions Abacus Property Group - 2016 Annual General Meeting 20
Slide 21: Disclaimer
Disclaimer 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 information