Carindale Property Trust · ASX:CDP
Carindale Property Trust — Westfield Group — H1 2005 Earnings Presentation
34 slides from Carindale Property Trust's earnings presentation, Feb 28, 2005
Slide 1: Westfield Group Results Presentation
Westfield Group Results Presentation 6 month period to 31 December 2004 28 February 2005
Slide 2: Key Highlights
Key Highlights Westfield Group’s inaugural result (6 months to December ’04) in line with forecasts within the Explanatory Memorandum Increased gross value of investments under management by 16% from A$36.0 billion to A$41.9 billion Acquired A$3.4 billion of property assets Completed A$1.1 b
Slide 3: Financial Highlights
Financial Highlights Results in line with Explanatory Memorandum A$ million 6 months to December ‘04 12 month Financial Performance Actual EM Forecast1 Forecast CY05 Net property income2 1,116 1,097 2,420 Profit after tax3 833 801 1,630 Distribution 876 875 1,816 Earnings per security (cents)3 49.5
Slide 4: Financial Highlights (continued)
Financial Highlights (continued) Actual Pro forma1 A$ million At 31 December ‘04 At 30 June ‘04 Financial Position Gross Property Investments - Consolidated 26,954 24,230 - Joint venture interests 6,593 4,022 33,5472 28,252 Net Assets 17,851 14,477 NTA ($ per security) 10.61 8.60 Gearing 40.6%3 40.1
Slide 5: Financial Review
Financial Review Statement of Financial Performance Distribution Statement Project Distributions Geographic Segment Breakdown Balance Sheet Property Investments Borrowings - Debt Profile - Hedging and Gearing Key Financial Ratios 5
Slide 6: Statement of Financial Performance
Statement of Financial Performance Results to 31 December ’04 6 months to 12 month A$ million Dec ’04 Forecast Actual1 CY05 Property Income 1,517 3,215 Contribution from equity accounted investments 104 200 Other income 22 60 Net profit/(loss) from asset sales 31 - Total income 1,674 3,475 Total Exp
Slide 7: Distribution Statement
Distribution Statement 6 months to December ‘04 A$ million 12 month Actual EM Forecast1 Forecast CY05 Profit after tax 833 801 1,630 Less: Net profit from asset sales (31) - - Profit after tax excluding asset sales 802 801 1,630 Project profits eliminated in the stapled group 74 74 186 IFRS adjustme
Slide 8: Project Distributions
Project Distributions Project distributions accounting policy y Consistent with Westfield Holdings methodology Project profits this period Eliminated in stapled group External parties Total (A$m) (A$m) (A$m) Project expenditure 516 73 589 Project profits distributed 74 8 82 Major Projects Projec
Slide 9: Geographic Segment Breakdown
Geographic Segment Breakdown Property Income1 Property Income by Location1 6 months A$ million UK to December ’04 3% Actual Australia & New Zealand Australia & New Zealand 489 42% United States 651 United Kingdom2 38 US 55% 1,178 Total 1 Represents Westfield’s proportional share of net property inco
Slide 10: Geographic Segment Breakdown
Geographic Segment Breakdown Gross Property Investments1 – Westfield Share Property Investments by Location At 31 December ’04 A$ million Actual UK2 11% Australia & New Zealand 14,286 United States 15,645 Australia & New Zealand United Kingdom 3,616 43% Total 33,5473 US 46% 1 Includes A$6,593m being
Slide 11: Balance Sheet
Balance Sheet As at 31 December ’04 Actual A$ million At 31 December ‘041 Cash 236 Property investments2 27,707 Net Investments in equity accounted joint ventures3 3,790 Other assets 2,548 Total assets 34,281 Borrowings 14,058 Other liabilities and minority interests 2,372 Total liabilities 16,430 N
Slide 12: Property Investments
Property Investments 18.7% uplift in the value of gross property investments since 30 June ’04 A$ billion Gross property investments as at 30 June ’041 28.3 Revaluations 2.8 Completed redevelopments and capex 1.2 Acquisitions 3.02 Gross property investments as at 31 December ’04 (pre exchange rate
Slide 13: Borrowings - Debt Profile
Borrowings - Debt Profile Westfield Group financing structure implemented with objective to diversify funding sources and lengthen maturity profile: A$8.5 billion of new core facilities put in place − US$2.6 billion raised from the US debt markets – the largest ever issue by an Australian corporat
Slide 14: Borrowings - Debt Profile (continued)
Borrowings - Debt Profile (continued) Funding Mix – Increased diversification 31 December 2004 30 June 2004 Bank Facilities 24% Bank Facilities CMBS/Other 25% 34% CMBS/Other 52% Capital Markets Capital Markets 23% 42% Secured/Unsecured Debt Mix – Reduced reliance on secured funding 31 December 2
Slide 15: Borrowings – Hedging and Gearing
Borrowings – Hedging and Gearing Interest Rate Profile as at 31 December 2004 y Weighted average interest cost of 4.1% y Average interest rate hedge maturity of 7.3 years y Percentage of fixed rate debt is 91% Target gearing level of mid 40% y Gearing at 31 December 2004 is 40.6% y Gearing post
Slide 16: Key Financial Ratios
Key Financial Ratios At 31 December ‘04 Net debt (gross debt less cash) as a % of assets 40.6% (total assets less cash) Net debt to total market capitalisation1 33.0% Secured debt as a % of total assets 14.4% EBITDA to interest expense 4.5 times Unsecured assets as a % of unsecured debt 209% 1 Based
Slide 17: Operational Review
Operational Review Portfolio Summary Retail Sales Overview Shopping Centre Operating Performance Development Pipeline Completed and Current Projects 17
Slide 18: Portfolio Summary
Portfolio Summary Australia NZ US UK Total Centres 40 11 66 9 126 Retail Outlets 9,400 1,200 9,000 1,000 20,600 GLA (million sqm) 3.0 0.3 6.3 0.4 10.0 Asset Value (billion) A$16.0 NZ$1.5 US$14.0 £1.9 A$40.31 Gross Lettable Area Retail Outlets Assets Owned & Under Management UK UK UK 4% 5% Australia
Slide 19: Retail Sales Overview
Retail Sales Overview1 Period to 31 December 2004 12 months 6 months 3 months $ Growth Growth Growth Australia Majors 3.3% 1.8% 0.1% Specialities A$8,917 psm 7.4% 7.6% 6.2% Total A$15.2 bn 6.2% 5.0% 3.4% New Zealand Specialties NZ$8,627 psm 6.6% 4.6% 3.6% Total NZ$1.6 bn 4.2% 2.7% 1.6% United States
Slide 20: Shopping Centre Operating Performance
Shopping Centre Operating Performance Average Specialty Specialty Occupancy Occupancy Lease Deals Store Rent Comparable Property Level1 Cost1 Completed2 Amount1 Growth2 NOI Growth2 Expense Ratio1 Australia & A$1,111 psm >99.5% 15.3% 194,387 sqm 4.9% 5.1% 28.1% New Zealand NZ$958 psm United States 94
Slide 21: Development Pipeline
Development Pipeline Projects under construction or in advanced planning over the next 3 years y Projects under construction A$1.8 billion y New projects commencing each year for the next 3 years A$1.5 to 2 billion Development pipeline broadly spread evenly across geographic regions Key projec
Slide 22: Recently Completed & Current Projects
Recently Completed & Current Projects - Australia & New Zealand – Approx $1.5 billion Total Cost Completed Major Projects $ million Actual Yield Completed The Pines (Melbourne) 46 10.4% Oct '04 Main Retail – Nov ’04 Riccarton (Christchurch) NZ 94 8.4% Cinemas – Mid ’05 Bondi Junction (Sydney) 755 7.
Slide 23: Recently Completed & Current Projects
Recently Completed & Current Projects - United States - Approx US $1.2 billion Total Cost Completed Major Projects US $million Actual Yield Completed Santa Anita (Los Angeles, California) 1131 9.2% Oct '04 Parkway (San Diego, California) 27 9.3% Oct '04 Estimated Total Cost Current Major Projects US
Slide 24: Current Projects
Current Projects - United Kingdom - Approx £660 million Estimated Total Cost Current Major Projects £ million Target Yield Anticipated Completion Derby 3101 8 – 8.5% Qtr 4 ’07 White City 3502 6.0% Qtr 2 ‘08 1 Westfield share 50% - £155 million 2 Westfield share represents a 25% interest 24
Slide 25: Appendix
Appendix Property Acquisitions since the Merger Reconciliation of Property Investments Comparable Specialty Retail Sales Growth by Region Comparable Retail Sales Growth by Category Future Major Projects Interest Rate Hedging Profile Currency Hedging Profile 25
Slide 26: Property Acquisitions since the Merger
Property Acquisitions since the Merger Since the completion of the merger Westfield Group has acquired interests in more than $3.6 billion1 of property across each of the regions in which the Group operates y Australia & New Zealand - Formed 4 new joint ventures with DB REEF Trust as part of a A$7
Slide 27: Reconciliation of Property Investments
Reconciliation of Property Investments A$ million Property investments as at 31 December 2004 Equity Investments Westfield JV Partner Accounted Total Under Group Interest Share JV Share Management Gross property investments 26,954 6,593 33,547 6,786 40,333 Development projects1 753 589 1,342 245 1,5
Slide 28: Comparable Specialty Retail Sales Growth by Region
Comparable Specialty Retail Sales Growth by Region Period to 31 December 2004 12 months 6 months 3 months Australia - NSW & ACT 4.9% 4.6% 3.6% - VIC 7.5% 7.9% 6.2% - QLD 12.3% 12.8% 11.4% - SA 13.4% 13.9% 10.6% - WA 6.2% 6.9% 6.7% Total Australia 7.4% 7.6% 6.2% New Zealand 6.6% 4.6% 3.6% United Stat
Slide 29: Comparable Retail Sales Growth by Category - Australia
Comparable Retail Sales Growth by Category - Australia Period to 31 December 2004 12 months 6 months 3 months Department Stores 2.2% (1.0)% (3.7)% Discount Dept. Store 5.0% 4.7% 3.4% Supermarkets 2.3% 1.3% (0.4)% Majors 3.3% 1.8% 0.1% Mini Majors 9.3% 7.3% 5.8% Cinemas 6.1% 4.0% (1.2)% Fashion 8.5%
Slide 30: Comparable Retail Sales Growth by Category - United States
Comparable Retail Sales Growth by Category - United States Period to 31 December 2004 12 months 6 months 3 months Women’s ready to wear 4.4% 2.6% 2.6% Men’s Fashion 3.9% 1.1% 0.6% Unisex 8.1% 8.1% 7.6% Jewellery 1.5% (0.3)% 0.0% Leisure: − Music 1.0% 2.1% 0.5% − Electronics 16.6% 21.1% 19.7% − Cellu
Slide 31: Future Major Projects
Future Major Projects* Australia & New Zealand United States United Kingdom Albany (NZ) Topanga (Los Angeles, California) The Broadmarsh Centre (Nottingham) Chermside (QLD) Annapolis (Annapolis, Maryland) The Friary (Guildford) Doncaster (VIC) Garden State Plaza (Paramus, New Jersey)
Slide 32: Interest Rate Hedging Profile
Interest Rate Hedging Profile INTEREST HEDGING PROFILE A$ interest receivable US$ interest payable £ interest payable A$ interest payable As at Dec A$ M Fixed Rate % US$ M Fixed Rate % £M Fixed rate % A$ M Fixed rate % 2004 5,750.5 6.27% (10,442.9) 4.18% (635.6) 6.31% (3,973.5) 6.18% 2005 5,640.5 6.
Slide 33: Currency Hedging Profile
Currency Hedging Profile FOREIGN CURRENCY DENOMINATED NET ASSET As at Dec A$ M US$ M £M NZ$ M 2004 8,768.8 4,893.0 236.3 1,603.7 FOREIGN CURRENCY DENOMINATED NET ASSET HEDGING MATURITY PROFILE Maturing Cross currency Cross currency Cross currency Cross currency during year swap receivable swap payab
Slide 34: Currency Hedging Profile (continued)
Currency Hedging Profile (continued) FOREIGN CURRENCY DENOMINATED NET INCOME HEDGING MATURITY PROFILE Sell US$ Forward Exchange Contracts Sell NZ$ Forward Exchange Contracts Maturing during year ended Dec US$ M Exch Rate NZ$ M Exch Rate 2005 (275.6) 0.6294 (127.2) 1.1120 2006 (225.7) 0.6079 (121.5)