Arena Reit · ASX:ARF
Arena Reit — Shareholder Meeting (November 2018)
32 slides from Arena Reit's shareholder meeting presentation, Nov 20, 2018
Slide 1: Annual General Meeting – Chairman's Address and Presentation
20 NOVEMBER 2018 For personal use only ANNUAL GENERAL MEETING – CHAIRMAN’S ADDRESS AND PRESENTATION Good morning ladies and gentlemen and welcome to the general meetings of unitholders in Arena REIT No. 1 and Arena REIT No. 2 (together, the Trusts) and the annual general meeting of shareholders in A
Slide 2: Chairman's address: Agenda and Highlights for FY18
Arena REIT (ASX:ARF) ASX Announcement 20 November 2018 Agenda For personal use only The agenda for today’s meeting includes a brief presentation from me followed by a presentation from Arena’s Managing Director, Bryce Mitchelson on the operating performance of Arena in the 2018 financial year and th
Slide 3: Remuneration and Strategy
Arena REIT (ASX:ARF) ASX Announcement 20 November 2018 delivering significant growth in earnings and distributions and achieving a range of other non- financial objectives. For personal use only The performance objectives have been reset for FY19, and have been designed to challenge and appropriatel
Slide 4: Outlook
Arena REIT (ASX:ARF) ASX Announcement 20 November 2018 operators looking for a long term real estate partner. Arena is well placed to continue to deliver on our investment objective – to generate attractive and predictable distributions to investors with For personal use only earnings growth prospec
Slide 5: For further information, please contact
Arena REIT (ASX:ARF) ASX Announcement 20 November 2018 For personal use only For further information, please contact: Bryce Mitchelson Samantha Rist Managing Director Head of Investor Relations +61 3 9093 9000 +61 3 9093 9000 bryce.mitchelson@arena.com.au samantha.rist@arena.com.au About Arena REIT
Slide 6: Annual General Meeting Summary and Outlook
PAGE 1 For personal use only Arena REIT Summary Annual and outlook General Meeting 20 November 2018 Arena REIT / 2018 Annual General Meeting / www.arena.com.au
Slide 7: Agenda
Agenda PAGE 2 For personal use only Chairman’s address 3 Managing director’s presentation 7 Questions 18 Formal Business 19 Concluding Remarks 26 Important notice 27 Arena REIT / 2018 Annual General Meeting / www.arena.com.au
Slide 8: Chairman's Address
PAGE PAGE33 For personal use only Financial Results Chairman’s Address Gareth Winter, Chief Financial Officer David Ross, Chairman Arena REIT / 2018 Annual General Meeting / www.arena.com.au
Slide 9: Highlights for FY2018
Highlights for FY2018 PAGE 4 Strong operating performance with capacity for future growth For personal use only ASX total return3 performance to 30 June 18 23.6% Net operating Earnings per Distributions per 25% profit security (EPS)1 security (DPS) 20% 18.6% 15% 13.2% 12.2% Increase 30% 10.0% $34.7m
Slide 10: Strategically well positioned
Strategically well positioned PAGE 5 High level of contracted earnings with growth prospects For personal use only Quality portfolio with annual rent Predictable reviews and long WALE income stream Population growing and Debt capacity Arena’s investment Supportive Active capital ageing, government p
Slide 11: Delivering on investment objective
Delivering on investment objective1 PAGE 6 Earnings and distribution growth underpinned by core earnings drivers For personal use only Earnings and distributions per security (cents) 16 14 13.5 12.8 13.1 12.3 12.0 12 11.1 10.9 10.0 10.2 10 8.8 8.9 8.0 8.2 8 6 4 2 - FY13 FY14 FY15 FY16 FY17 FY18 FY19
Slide 12: Managing Director's Presentation
PAGE PAGE77 For personal use only Managing Director’s Portfolio Update presentation Rob de Vos, Head of Property Bryce Mitchelson, Managing Director Arena REIT / 2018 Annual General Meeting / www.arena.com.au
Slide 13: FY18 contributors to EPS growth
FY18 contributors to EPS growth PAGE 8 Core earnings drivers continue to underpin EPS1 growth For personal use only EPS1 cents 14 0.65 0.10 ( 0.30 ) 13.10 0.35 12.3 12 10 8 6 FY17 EPS Like-for-like Completed Net operating Funding mix FY18 EPS rental income developments, expenses and growth acquisiti
Slide 14: Financial position at June 2018
Financial position at 30 June 2018 PAGE 9 Increase in NAV per security of 7%, gearing reduced to 24.7% For personal use only ($) Net Asset Value (NAV) per security 1.97 2.00 1.84 1.54 1.50 1.33 1.13 1.02 1.00 0.50 0.00 FY13 FY14 FY15 FY16 FY17 FY18 ($m) Total Assets, Borrowing and Gearing 800 40.0%
Slide 15: Portfolio well positioned
Portfolio well positioned PAGE 10 Value-adding business model focused on social infrastructure property For personal use only Lease management Working in partnership • 100% occupancy • Extended lease terms out of maintained cycle, taking portfolio • Average like-for-like rent weighted average lease
Slide 16: Lease expiry profile
Lease expiry profile PAGE 11 Weighted average lease expiry increased to 12.91 years Portfolio WALE2 in years For personal use only 14 12.8 12.9 12 • 14 completed developments added to portfolio 9.7 10 8.9 with average initial lease term of 19.7 years 8.5 8 • Only 2% of portfolio income subject to ex
Slide 17: Annual rent review profile
Annual rent review profile PAGE 12 FY18 like-for-like rent increase of +2.6% For personal use only Actual 2.0% +6.3% 100% 9.0% 10.5% 12.0% 17.0% 5.0% 4.5% FY18 rent review summary: 80% – Average like-for-like rent 10.0% review increase of 2.6% achieved % of total portfolio income – Market rent revie
Slide 18: Developments completed and pipeline
Developments completed and pipeline PAGE 13 14 high quality, purpose built developments completed in FY18 For personal use only Developments completed in Number of Initial yield on Initial lease term Long day care Total cost ($m) FY18 projects cost (%) (yrs) places Leasehold portfolio 1 2.5 8.7 25.3
Slide 19: ELC market demand
ELC market demand PAGE 14 Underlying demographics for ELC demand remain positive For personal use only • Continued population growth in 0-4 year old children • Long day care participation rate of 0-4 year olds has continued to increase • Labour force participation rate of females 16-64 years has con
Slide 20: ELC market supply
ELC market supply PAGE 15 New supply presenting challenges and creating opportunities For personal use only • 224 net new centres added to supply in 2018 calendar year to date • Approximately 300 additional new childcare centres currently in construction • Tenants are focused on optimising profitabi
Slide 21: Arena REIT ELC portfolio
Arena REIT ELC portfolio PAGE 16 Proactively managed ELC portfolio, well placed in current market For personal use only • Portfolio occupancy 100% • Total portfolio comparatives over the twelve month period to 30 June 2018 − Average daily fee increased by 5.3% from $92.54 to $97.49 − Average centre
Slide 22: Outlook
Outlook PAGE 17 FY19 distributions per security guidance of 13.5 cents1, +5.5% on FY18 For personal use only • ELC and healthcare sectors supported by strong structural macroeconomic demand drivers • ELC portfolio proactively positioned for current cyclical challenges and opportunities • Income grow
Slide 23: Questions
PAGE PAGE18 For personal use only 18 Questions Summary and outlook Questions Appendices Arena REIT / www.arena.com.au
Slide 24: Formal Business
PAGE PAGE19 For personal use only 19 Summary Formal and outlook Business Questions Arena REIT / www.arena.com.au
Slide 25: Ordinary Business: Resolution 1 Remuneration Report
Ordinary Business PAGE 20 Resolution 1: Non-binding advisory vote on the Remuneration Report For personal use only To consider and, if thought fit, to pass the following as an advisory resolution of the Company: ‘That the Remuneration Report for the financial year ended 30 June 2018 be adopted.’ Pro
Slide 26: Other Business: Resolution 2 Re-election of Dennis Wildenburg
Other Business PAGE 21 Resolution 2: Re-election of Mr Dennis Wildenburg as a director of the Company For personal use only To consider and, if thought fit, to pass the following as an ordinary resolution of the Company: ‘That Mr Dennis Wildenburg, who in accordance with ASX Listing Rules 14.4 and 1
Slide 27: Other Business: Resolution 3 Deferred STI rights, Bryce Mitchelson
Other Business PAGE 22 Resolution 3: Grant of deferred short term incentive rights to Mr Bryce Mitchelson For personal use only To consider and, if thought fit, to pass the following resolutions as separate ordinary resolutions of the Company and each of the Trusts: ‘That for the purposes of ASX Lis
Slide 28: Other Business: Resolution 4 LTI performance rights, Bryce Mitchelson
Other Business PAGE 23 Resolution 4: Grant of long term incentive performance rights to Mr Bryce Mitchelson For personal use only To consider and, if thought fit, to pass the following resolutions as separate ordinary resolutions of the Company and each of the Trusts: ‘That for the purposes of ASX L
Slide 29: Other Business: Resolution 5 Deferred STI rights, Gareth Winter
Other Business PAGE 24 Resolution 5: Grant of deferred short term incentive rights to Mr Gareth Winter For personal use only To consider and, if thought fit, to pass the following resolutions as separate ordinary resolutions of the Company and each of the Trusts: ‘That for the purposes of ASX Listin
Slide 30: Other Business: Resolution 6 LTI performance rights, Gareth Winter
Other Business PAGE 25 Resolution 6: Grant of long term incentive performance rights to Mr Gareth Winter For personal use only To consider and, if thought fit, to pass the following resolutions as separate ordinary resolutions of the Company and each of the Trusts: ‘That for the purposes of ASX List
Slide 31: Concluding Remarks
PAGE PAGE PAGE 26 26 For personal use only 18 Concluding Summary andRemarks Questions outlook David Ross, Chairman Arena REIT / www.arena.com.au
Slide 32: Important notice
Important notice PAGE 27 This presentation has been prepared by Arena REIT (Arena) comprising Arena REIT Limited (ACN 602 365 186), Arena REIT Management Limited For personal use only (ACN 600 069 761 AFSL No. 465754) as responsible entity of Arena REIT No.1 (ARSN 106 891 641) and Arena REIT No.2 (A