Desane Group Holdings Ltd · ASX:DGH
Desane — FY2016 Earnings Presentation
22 slides from Desane's earnings presentation, Sep 5, 2016
Slide 1: FY16 Results Presentation
For personal use only FY16 Results Presentation September 2016
Slide 2: Key Achievements
Key Achievements NTA per share EBIT increased For personal use only Over the past 3 years Desane has consistently uplift 68% delivered its objectives: 12% to $7.9m $40m sale of the Burns Bay Road, Lane Cove investment to 83¢ Realisation of the Easton Rozelle development delivering $16m cash as at 30
Slide 3: FY16 Financial Results
For personal use only FY16 Financial Results
Slide 4: Financial Highlights
Financial Highlights Operating Results FY16 FY15 Balance Sheet As at As at For personal use only 30 June 2016 30 June 2015 Development1 $4.6m $0.9m Cash and financial $17.2m $4.7m Investment2 $2.3m $2.2m assets EBIT $7.9m $4.7m Net cash/(debt)1 $0.6m ($21.6m) NPAT $5.1m $2.5m Net assets $30.6m $26.7
Slide 5: FY16 Profit Summary
FY16 Profit Summary FY16 FY15 Active asset management with: For personal use only Property development sales $28.4m nil 100% occupancy for FY16 Rental income $2.3m $2.2m Property management $0.2m $0.2m Rental income uplift of 4.5% Property revaluations (net gain) $2.1m $3.2m Investment propert
Slide 6: FY16 Balance Sheet Summary
FY16 Balance Sheet Summary As at As at NTA For personal use only 30 June 2016 30 June 2015 Assets Cash and financial assets $17.2m $4.7m $30.6m Development properties held for sale $0.5m $20.6m $26.7m $25.5m Investment properties $34.8m $32.7m Other assets $0.8m $3.0m TOTAL ASSETS $53.3m $61.0m FY14
Slide 7: Reduction in Group Debt
Reduction in Group Debt For personal use only Summary As at 30 June 2016 As at 30 June 2015 FY16 has generated significant cash reserves, enabling acquisitions of Property investment bank loans $16.6m $19.6m further investment and development property assets Construction bank loan1 nil $6.7m Total B
Slide 8: Increased Ordinary Dividend Payment
Increased Ordinary Dividend Payment FY16 FY15 FY14 For personal use only Interim Dividend 2.25¢ 2.00¢ 2.00¢ Special Dividend - 15.00¢ - Final Dividend 2.25¢1 2.00¢ 2.00¢ Full Year Dividend 4.5¢ Total Dividend 4.50¢ 19.00¢ 4.00¢ Franking 100% 100% 100% per share 1 FY2016 final dividend to be paid 7 O
Slide 9: Operational Update
For personal use only Operational Update
Slide 10: Desane's Business Model
Desane’s Business Model For personal use only Transparent revenue streams Property Predictable rental income streams Investment Opportunity for development profits Asset revaluations Delivering growth and maximising Our returns to shareholders Property Customers Property Services Managemen
Slide 11: Growth in Property Investment Portfolio
Growth in Property Investment Portfolio For personal use only Portfolio well positioned to ensure Portfolio Summary FY16 income and capital values continue to grow Portfolio value $34.8m Net rental income increase 4.50% Portfolio book value increased by 6.4% to $34.8m WACR 6.95% Approximately
Slide 12: Portfolio Details
Portfolio Details WALE For personal use only Property State Ownership Cap rate NLA (m2) Occupancy (yrs) 7 Sirius Rd NSW 100% 7.00% 2,778 100% 4.3 Lane Cove 13 Sirius Rd NSW 100% 7.20% 2,181 100% 2.8 Lane Cove 7-9 Orion Rd NSW 100% 7.25% 5,766 100% 3.1 Lane Cove 68-72 Lilyfield NSW 70% 6.50% 5,494 10
Slide 13: Developments
Developments EASTON ROZELLE For personal use only FY16 • Completion and realisation of $28.4m sales revenue from Easton Rozelle • An additional $0.6m revenue to be realised in FY17 • Construction bank facility repaid in full • The realisation of this project has generated significant cash returns su
Slide 14: Rezoning & Masterplan - Rozelle Property
Rezoning & Masterplan - Rozelle Property For personal use only
Slide 15: Rezoning & Masterplan update
Rezoning & Masterplan update In 2012, the NSW Government and Urban Growth’s Bays Precinct Taskforce For personal use only identified the Rozelle Rail Yards – a sub precinct in which Desane’s 5,274m2 property at 68-72 Lilyfield Road, Rozelle is located, as an area for urban renewal in the medium to
Slide 16: Rezoning & Masterplan update – cont.
Rezoning & Masterplan update – cont. Subsequent to the lodgement of the Masterplan and rezoning RMS has indicated that it intends to conclude the negotiation of For personal use only proposal, meetings were held between June 2015 and June the purchase of the property by October 2017. 2016 with s
Slide 17: Outlook
For personal use only Outlook
Slide 18: Outlook
Outlook Medium term outlook Property Investment Program 2017 + For personal use only • Low interest rate environment to continue Strong focus on property acquisitions where they will meaningfully enhance scale and shareholder returns • Existing corporate structure will ensure a business 2017 model w
Slide 19: Key Focus for FY17+
Key Focus for FY17+ For personal use only • Increase NTA and reward shareholders with continued fully franked dividends FY18+ • Pursue new commercial, industrial and residential FY17 Finalisation of FY16 New property negotiations opportunities in metropolitan acquisitions for the Rozelle Sydney •
Slide 20: Management Team
Management Team For personal use only Phil Montrone OAM Rick Montrone Jack Sciara Managing Director Director – Head of Chief Financial Officer Property & Company Secretary Phil has served as Managing Director Rick is an Executive Director and Jack joined Desane in 2001 and has since Desane’s incorpo
Slide 21: Desane Team
Desane Team Non Executive Non Executive For personal use only Chairman Director John Sheehan John Bartholomew Managing Director Phil Montrone Executive Director CFO & Company Head of Property Secretary Rick Montrone Jack Sciara Property Property Property Compliance / Group Accounts Payable Legal Fin
Slide 22: Disclaimer
Disclaimer For personal use only This presentation paper has been published for information purposes only. The information contained in this presentation paper is of a general purpose nature and does not constitute financial product advice. It has been prepared without taking into account any reader