Finbar Group Limited · ASX:FRI
Finbar — Shareholder Meeting (October 2020)
61 slides from Finbar's shareholder meeting presentation, Oct 20, 2020
Slide 1: 2020 Annual General Meeting
2020 ANNUAL GENERAL MEETING
Slide 2: Online Attendees – Voting Process
ONLINE ATTENDEES – VOTING PROCESS For personal use only • When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen • To vote simply select the direction in which you would like to cast your vote, the selected option will change colour. • There is no su
Slide 3: Online Attendees – Question Process
ONLINE ATTENDEES – QUESTION PROCESS For personal use only • When the Question function is available, the Q&A icon will appear at the top of the app. • To send in a question, simply click in the ‘Ask a question’ box, type your question and the press the send arrow • Your question will be sent immedia
Slide 4: Proxy Appointment
Proxy Appointment For personal use only Valid proxy forms were received from 165 shareholders representing 191,143,072 shares. The proxy results for each resolution will be displayed for each agenda item. 4
Slide 5: Resolution – Adoption of Remuneration Report
Resolution 1 – Adoption of Remuneration Report For personal use only To consider and, if thought fit to pass the following as a non-binding resolution: “That, for the purposes of section 250R(2) of the Corporations Act and for all other purposes, approval is given for the adoption of the Remuneratio
Slide 6: Resolution – Re-election of Mr Kee Kong Loh as a Director
Resolution 2 – Re-election of Mr Kee Kong Loh as a Director For personal use only To consider and, if thought fit to pass the following as an ordinary resolution: “That, for the purpose of clause 13.2 of the Constitution, ASX Listing Rule 14.4 and for all other purposes, Mr Kee Kong Loh, a Director,
Slide 7: Resolution – Re-election of Mr Ronald Chan as a Director
Resolution 3 – Re-election of Mr Ronald Chan as a Director For personal use only To consider and, if thought fit to pass the following as an ordinary resolution: “That, for the purpose of clause 13.2 of the Constitution, ASX Listing Rule 14.4 and for all other purposes, Mr Ronald Chan, a Director, r
Slide 8: FY20 Annual Results Summary & Development Update
20 OCTOBER 2020 FY20 Annual Results Summary & Development Update For personal use only 8
Slide 9: Financials
For personal use only Financials 9
Slide 10: Net Profit
For personal use only ➢ $7.07m net profit. ➢ 24 consecutive years of profitability. $m 0 5 15 20 25 30 35 40 10 -5 Net Profit FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 NPAT FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Source: Finbar Group Ltd 10
Slide 11: Sources of Earnings FY20
Sources of Earnings FY20 Aire For personal use only Aurelia 3% 9% 94% Sabina Developments 32% Vue Source of 16% ➢ Core business of property Source of Development Earnings development contributed to 94% of All Earnings earnings. Concerto 5% ➢ Vue Tower, Sabina, One Kennedy & REVA Palmyra were the lar
Slide 12: Segment Contributions FY20
Segment Contributions FY20 For personal use only Development Rental Property Interest Revaluations Admin Profit Activity 18.00 16.00 14.00 12.00 10.00 $m 8.00 6.00 4.00 2.00 0.00 Positive Impact Negative Impact Source: Finbar Group Ltd 12
Slide 13: Corporate Administration Costs
Corporate Administration Costs For personal use only ➢ Administration costs overhead as Net Equity ($m) Administration Costs Admin Costs as % of Net Equity percentage of net equity is 2.9%. $250 5% ➢ Outsourcing model ensures company is scalable and efficient. 4% $200 Absorbed some functions into ex
Slide 14: Earnings Per Share & Dividends
Earnings Per Share & Dividends For personal use only 18 16 ➢ Fully franked dividend of $0.03 per 14 share attributable to the year. 12 Cents per share ➢ 112.5c in dividends to date. 10 Retained 8 Final 6 Interim 4 2 0 Source: Finbar Group Ltd 14
Slide 15: Cash Position
Cash Position For personal use only CASH $80 $70 ➢ Strong year end cash position of $30.6m. $60 ➢ Well positioned to fund working capital requirements and equity $50 contributions for new project $m commencements. $40 ➢ No debt on residual stock with $30 settlement cashflow to bolster working capita
Slide 16: Current Project Debt & Coverage
Current Project Debt & Coverage For personal use only Debt & Pre-sales Coverage $60 ➢ $64.2m in finance facilities were $64.2m repaid in FY20 and FYTD settlements $50 on completed projects. ➢ No debt on residual stock. $40 REPAID REPAID REPAID ➢ Surplus presales coverage on $30 remaining project fac
Slide 17: Review of Operations
Review of Operations For personal use only 17
Slide 18: Investment Properties
Investment Properties For personal use only FAIRLANES PELAGO 181 Adelaide Terrace East Perth 23 & 26 Sharpe Avenue Karratha ➢ 7,586 sqm office building ➢ 101 apartments & 21 commercial lots ➢ Leased to AECOM, Broadspectrum, APP, ➢ Leased to small business Finbar’s corporate office, & predominantly s
Slide 19: Investment Property Leasing
Investment Property Leasing For personal use only 100 7,000 ➢ Pelago Residential 99% leased. 80 6,000 ➢ Pelago Commercial 61% leased. 5,000 Commercial Sqm NLA Residential Apartments 60 ➢ Fairlanes Commercial 90% leased. 4,000 40 3,000 Sources of All Earnings 2,000 4% 20 Rental 1,000 Other 1% Fairlan
Slide 20: Investment Property Values & Gearing Profile
Investment Property Values & Gearing Profile For personal use only $120 ➢ Loan to Value Ratio across investment property is 35.6% Equity $100 ➢ Facilities with Australian Major Debt Banks (CBA & NAB). $80 $m $60 $40 35.6% LVR $20 $0 Fairlanes Pelago Total Source: Finbar Group Ltd 20
Slide 21: Sales & Market Activity
Sales & Market Activity For personal use only 21
Slide 22: Finbar – All Projects Sales per Month
Finbar – All Projects Sales per Month For personal use only Sale notes this calendar year: • Increase in Sales volume in Q3 period • 216 total sales this year 80 • 114 sales relate to completed stock $80 Millions 74 • 102 sales relate to off-the-plan 70 $70 60 $60 50 $50 45 Month to date 40 40 38 37
Slide 23: All Developments - Investor Sales vs Owner Occupier
All Developments - Investor Sales vs Owner Occupier For personal use only Notes: • Investors % have increased this calendar year (Green line) 120 100.0% 90.0% 100 80.0% 70.0% 80 60.0% 60 50.0% 40.0% 40 30.0% 20.0% 20 10.0% 0 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 24: FIRB Sales
FIRB Sales For personal use only Notes: • 18 FIRB sales this calendar year since vs 20 same period last year and 68 in 2018 before Foreign surcharge was CALENDAR YEAR introduced 120 100 98 93 80 75 65 60 47 45 40 35 27 20 22 18 9 Introduction by WA State Govt – Foreign Buyers Surcharge Tax (7%) on 1
Slide 25: Finbar – All Projects Unsold Completed And Off-the-Plan
Finbar – All Projects Unsold Completed And Off-the-Plan For personal use only • Sales notes this calendar year: • Completed stock: Average $6.1m sales per month • Off the plans stock: Average $6.9m sales per month $600 • $130m in total sales this calendar • Average $13m in sales a month Millions $50
Slide 26: Pre-sales Book Value
Pre-sales Book Value For personal use only $600 Millions SUBI STRAND & TOCCATA ARBOR NORTH $500 NORWOOD UNISON ON TENTH MOTIVE CONCERTO AURELIA & AIRE REVA $400 LINQ VUE $300 PALMYRA SABINA ONE KENNEDY $200 $95 m IN ACCRUED PRE-SALES $100 $0 $m PROJECT COMPLLETION & SETTLEMENTS 26
Slide 27: Development Activity Update
Development Activity Update For personal use only Effective as at 20/10/2020 27
Slide 28: Completed Projects with Stock For Sale
Completed Projects with Stock For Sale For personal use only Effective as at 20/10/2020 28
Slide 29: Concerto, Adelaide Terrace, East Perth
Concerto 189 Adelaide Terrace, East Perth For personal use only Project: Concerto consists of 226 studio, one, two and three bedroom apartments plus 1 commercial unit. Concerto is East Perth’s tallest residential building at 38 storeys. Average price of $824,868. ▪ Status: Construction Completed ▪ O
Slide 30: Motive, Railway Parade, West Leederville
Motive 172 Railway Parade, West Leederville For personal use only Project: Motive consists of 143 one and two bedroom apartments. Average price of $509,409. ▪ Status: Construction Completed ▪ Ownership: 50% JV with land owner ▪ Value: ~$72.9 million ▪ Completed: FY17 ▪ Sales: Value ($m) Under Lots C
Slide 31: Aurelia, Harper Terrace, South Perth
Aurelia 1 Harper Terrace, South Perth For personal use only Project: Aurelia consists of 118 one, two and three bedroom apartments plus 6 commercial units and 14 office spaces. Average residential price of $967,868. ▪ Status: Construction Completed ▪ Ownership: Remaining office stock, 100% owned thr
Slide 32: Aire West Perth, Murray Street, West Perth
Aire West Perth 659 Murray Street, West Perth For personal use only Project: Aire West Perth consists of 178 one, two and three bedroom apartments plus 64 serviced apartments and 2 ground floor commercial units. Average residential price of $492,636. ▪ Status: Construction Completed ▪ Ownership: 50%
Slide 33: Reva, Harper Terrace, South Perth
Reva 5 Harper Terrace, South Perth For personal use only Project: Reva consists of 41 luxury one, two and three bedroom apartments plus 18 commercial lots of ground floor retail and level one office space. Average residential price of $795,942. ▪ Status: Construction Completed ▪ Ownership: Wholly ow
Slide 34: Vue Tower, Adelaide Terrace, East Perth
Vue Tower 63 Adelaide Terrace, East Perth For personal use only Project: Vue Tower consists of 245 one, two and 3 bedroom apartments plus 3 commercial units and 2 office units. Average residential price of $570,559. ▪ Status: Construction Completed ▪ Ownership: 50% JV with land owner ▪ Value: ~$144.
Slide 35: Palmyra Apartments East, McGregor Road, Palmyra
Palmyra Apartments East 49 McGregor Road, Palmyra For personal use only Project: Palmyra Apartments East consists of 128 one, two and three bedroom apartments. Average price of $374,572. ▪ Status: Construction Completed ▪ Ownership: 50% JV with land owner ▪ Value: ~$49.7 million ▪ Completed: FY20 ▪
Slide 36: Sabina, Applecross
Sabina Applecross 908 Canning Highway, Applecross For personal use only Project: Sabina is the first stage of the Canning Highway development and consists of 164 one, two and three bedroom apartments plus 3 ground floor commercial units. Average residential price of $726,277. ▪ Status: Construction
Slide 37: One Kennedy, Kennedy Street, Maylands
One Kennedy 1 Kennedy Street, Maylands For personal use only Project: One Kennedy is the second stage to the Unison on Tenth development. One Kennedy consists of 123 one, two and three bedroom apartments plus 3 commercial units. Average residential price of $401,853. ▪ Status: Construction Completed
Slide 38: Projects Under Construction
Projects Under Construction For personal use only 38
Slide 39: Riverena, Rowe Avenue, Rivervale
Riverena 5 Rowe Avenue, Rivervale For personal use only Project: Riverena Apartments consists of 125 one, two and three bedroom apartments. Average price of $396,841. ▪ Status: Under Construction ▪ Ownership: 50% JV through SPV ▪ Value: ~$52.0 million ▪ Est. Completion: FY2021 ▪ Sales: Value ($m) Lo
Slide 40: Dianella Apartments, Chester Avenue, Dianella
Dianella Apartments 36 Chester Avenue, Dianella For personal use only Project: Dianella Apartments consists of 128 one, two and three bedroom apartments. Average price of $483,949. ▪ Status: Under Construction ▪ Ownership: 100% through wholly owned subsidiary ▪ Value: ~$62.7 million ▪ Est. Completio
Slide 41: Development Approval Received
Development Approval Received For personal use only Effective as at 20/10/2020 41
Slide 42: Civic Heart, South Perth
Civic Heart 99 Mill Point Road & 3 Mends Street, South Perth For personal use only Project: Civic Heart will consist of 309 one, two, three bedroom apartments plus 26 commercial lots. Average residential price $1,181,993. ▪ Status: In Marketing ▪ Ownership: 50% JV with landowner ▪ Value: ~$409 milli
Slide 43: Civic Heart - Residential
Civic Heart - Residential 99 Mill Point Road & 3 Mends Street, South Perth For personal use only Value ($m) Lots Settled Settled Under Contract $- Under Contract 0 34 $38 m For Sale $340 m For Sale 275 43
Slide 44: Civic Heart - Commercial
Civic Heart - Commercial Mill Point Road, Mends Street, and Labouchere Road, South Perth For personal use only Value ($m) Lots Settled $- For Sale 12 Under Contract Under Contract 14 For Sale $11 m $19 m Settled 0 44
Slide 45: AT238, Adelaide Terrace, Perth
AT238 238 Adelaide Terrace, Perth For personal use only Project: AT238 Perth consists of 119 studios, one, two and three bedroom apartments plus two ground floor commercial lots over 31 levels. ▪ Status: Development approval received ▪ Ownership: 50% JV with landowner ▪ Value:~$90 million ▪ Est. Com
Slide 46: Canning Highway Applecross Developments
Canning Highway Applecross Developments 910 Canning Highway & 3 Kintail Road, Applecross For personal use only Project: The Canning Highway Applecross developments remaining two stages will consist of approximately 269 one, two, three bedroom apartments, plus 6 ground floor commercial units. ▪ Statu
Slide 47: The Point, Rowe Avenue, Rivervale
The Point 31 Rowe Avenue, Rivervale For personal use only Project: The Point will consist of approximately 167 one, two and three bedroom apartments plus 9 ground floor commercial units. To be constructed on a 4,000m2 development site situated at the main entrance to the Springs precinct. ▪ Status:
Slide 48: Palmyra Apartments West, McGregor Road, Palmyra
Palmyra Apartments West 45 McGregor Road, Palmyra For personal use only Project: Palmyra Apartments West will consist of approximately 130 one, two and three bedroom apartments. ▪ Status: Development approval received ▪ Ownership: 50% JV with landowner ▪ Value: ~$52 million ▪ Est. Completion: TBC ▪
Slide 49: Projects In Planning and Design
Projects In Planning and Design For personal use only 49
Slide 50: Great Eastern Highway
239 Great Eastern Highway For personal use only Project: 239 Great Eastern Highway has an approved DA for 194 one and two bedroom apartments plus 154sqm of ground floor commercial ▪ Status: In Planning ▪ Ownership: Wholly owned through subsidiary ▪ Value: $75m ▪ Est. Completion: TBC ▪ Sales: Value (
Slide 51: Homelea Court, Rivervale
2 Homelea Court Cnr Rowe Avenue and Homelea Court, Rivervale For personal use only Project: 2 Homelea Court will consist of approximately 185 apartments within a 10 level building. The site is comprised of four vacant blocks totaling 3,770 sqm. ▪ Status: In planning ▪ Ownership: Wholly owned through
Slide 52: Lot 1000 Riversdale Road, Rivervale
Lot 1000 32 Riversdale Road, Rivervale For personal use only Project: Lot 1000 comprises 4,069 sqm of absolute waterfront land with expansive views of the Swan River, Stadium Precinct, and Perth CBD. Will consist of approximately 150 residential apartments. ▪ Status: In planning and design ▪ Ownersh
Slide 53: Lot The Springs, Hawksburn Road, Rivervale
Lot 888 The Springs 2 Hawksburn Road, Rivervale For personal use only Project: Lot 888 comprises of 2370 sqm of land within The Springs, Rivervale Precinct. For future development. ▪ Status: Office development approval received ▪ Ownership: 50% JV through SPV ▪ Value: $40m ▪ Est. Completion: TBC ▪ S
Slide 54: Harmony, Adelaide Terrace, East Perth
Harmony 187 Adelaide Terrace, East Perth For personal use only Project: Harmony comprises the former ABC Radio Studios heritage building with a GFA of 3,711sqm over 3 levels. The Company is exploring reactivation options using exciting buildings. ▪ Status: In planning and design ▪ Ownership: Wholly
Slide 55: Chemlabs, Hay Street, East Perth
Chemlabs 101 Hay Street, East Perth For personal use only Project: The heritage listed site was formerly known as the Chemistry Centre and is located at Lot 101 Hay Street East Perth. • 340 one, two and three bedroom apartments • 14 ground floor commercial • 5,335 Sqm land • Status: In planning and
Slide 56: Project Pipeline - Summary
Project Pipeline - Summary For personal use only 450 400 350 300 250 200 150 100 50 0 Remaining Stock Value $m Sold Stock Value $m Source: Finbar Group Ltd 56
Slide 57: Cumulative Units Developed
Cumulative Units Developed For personal use only 10000 9000 8000 - 6402 units developed to date. 7000 6402 6000 - Additional 1978 units in secured pipeline. 5000 4000 3000 2000 1000 0 96 9798 99 00 01 03 04 05 07 08 09 1011 12 13 14 15 16 17 18 19 20 2122 23 Source: Finbar Group Ltd 57
Slide 58: Finbar to Rent
Finbar to Rent is a wholly owned subsidiary of ASX Listed company Finbar Group Limited and has been specifically established to provide the current and future owners of Finbar apartments with an exclusive property management service. Our primary goal is to make the ownership of your investment prope
Slide 59: Finbar to Rent – Residential
Finbar to Rent – Residential For personal use only Number of Residential Properties Under Management 300 ➢ Established Finbar to Rent 250 ➢ Property Management for any Finbar developed property since day 200 one (entering 25th year) ➢ Fixed rate management fees with 150 free inclusions ➢ Streamlined
Slide 60: Highlights
Highlights For personal use only Unstressed balance sheet. Strong and stable, Finbar remains profitable in Under geared investment assets Multi-year pipeline of enthusiastic JV partners challenging market residential property seeking new opportunities environment State economy strong and Western Aus
Slide 61: Important Notice
Important Notice For personal use only Some of the information contained in this presentation may contain forward-looking revenue, timeline, and general statements that are subject to various risks, uncertainties, and changes. Forward-looking statements include those containing such words as ‘estima