Arena Reit · ASX:ARF
Arena Reit — Shareholder Meeting (November 2017)
30 slides from Arena Reit's shareholder meeting presentation, Nov 15, 2017
Slide 1: Annual General Meeting – Chairman's Address and Presentation
15 NOVEMBER 2017 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: Agenda; Securityholder returns; Financial performance
Arena REIT (ASX:ARF) ASX Announcement 15 November 2017 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 2017 financial year and th
Slide 3: Remuneration; Strategy and operational performance
Arena REIT (ASX:ARF) ASX Announcement 15 November 2017 Remuneration For personal use only Reflecting on these positive financial outcomes achieved for the year, I can confirm that the management team substantially met the 2017 KPI’s set by the Board – delivering significant growth in earnings and di
Slide 4: Outlook
Arena REIT (ASX:ARF) ASX Announcement 15 November 2017 valuation, completed eight developments and added a further five development projects to the portfolio over the course of 2017. For personal use only When combined with the $65 million development portfolio acquisition announced in July 2017, Ar
Slide 5: Further information and About Arena REIT
Arena REIT (ASX:ARF) ASX Announcement 15 November 2017 For further information, please contact: Bryce Mitchelson Susie McPherson For personal use only Managing Director Head of Investor Relations and Marketing +61 3 9093 9000 +61 3 9093 9000 bryce.mitchelson@arena.com.au susie.mcpherson@arena.com.au
Slide 6: For personal use only
PAGE 1 For personal use only Arena REIT / 2017 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 8 Questions 17 Formal business 18 Concluding remarks 24 Arena REIT / 2017 Annual General Meeting / www.arena.com.au
Slide 8: For personal use only
PAGE 3 For personal use only Arena REIT / 2017 Annual General Meeting / www.arena.com.au
Slide 9: Track record of outperformance
Track record of outperformance PAGE 4 Strong FY17 result building on successful track record for investors For personal use only ASX annual total securityholder return (%) FY17 annual total securityholder return 50% 37.6% 19.8% 40% 36.3% 26.7% 30% 24.6% 20.2% 19.8% 20% Three year annual compound tot
Slide 10: FY17 financial highlights
FY17 financial highlights PAGE 5 Strong FY17 results For personal use only Statutory Net Net Operating Earnings per Distributions per Profit Profit security (EPS)1 security (DPS) Increase 30% $96.8m $28.7m 12.3 cents 12.0 cents profit by +33% +12% +11% +10% Total Assets Revaluation uplift Net Asset
Slide 11: Portfolio strategy
Portfolio strategy PAGE 6 Value-adding business model focussed on specialised real estate For personal use only Preferred property characteristics Relatively long lease terms Premises that have strategic importance to tenant operations High credit quality tenants SOCIAL Tenants responsible f
Slide 12: Delivering on investment objective
Delivering on investment objective: PAGE 7 To generate attractive and predictable distributions to investors with earnings growth prospects over the medium to long term For personal use only Earnings and Distributions per security (cents) 16 14 12.8 12.3 12.0 12 11.1 10.9 10.0 10.2 10 8.8 8.9 8.0 8.
Slide 13: For personal use only
PAGE 8 For personal use only Arena REIT / 2017 Annual General Meeting / www.arena.com.au
Slide 14: FY17 financial performance drivers
FY17 financial performance drivers PAGE 9 Active portfolio and capital management underpin EPS growth of 11% For personal use only Highlights Contributors to EPS growth (cents) 14 • Growth in income from: − Like-for like annual rental income growth of 4.3% 13 (6.8% on market rent 0.21 12.30 reviews)
Slide 15: FY17 financial position
FY17 financial position PAGE 10 Increase in NAV per security of 19% For personal use only ($) Net Asset Value (NAV) per security Highlights 2.00 1.84 1.54 1.50 1.33 • Net asset value per security 1.13 1.02 increased 19% to $1.84 following 1.00 $66 million increase in valuations 0.50 • Total Assets i
Slide 16: Portfolio highlights
Portfolio highlights PAGE 11 Portfolio defensive characteristics enhanced For personal use only • 100% occupancy maintained WALE (years) 14 12.8 • 129 lease extensions/renegotiations/ 12 10.6 renewals completed 10 8.7 8.5 8.9 8.9 8.8 9.7 8.3 • Weighted average lease expiry (WALE) 8 extended to 12.8
Slide 17: Eight ELC developments completed in FY17
Eight ELC developments completed in FY17 PAGE 12 Meeting Arena’s development project criteria and delivering competitive advantage to operators For personal use only Initial Lease Long day Favourable physical locations Total cost yield on term care ($m) cost Supportive demographics (yrs) places
Slide 18: ELC development pipeline $113 million
ELC development pipeline $113 million PAGE 13 Seventeen projects due for completion in FY18; one project in FY19 For personal use only Arena originates site, Fund through Arena pipeline1 secures tenant and Total pipeline structure2 constructs Number of projects 6 12 18 Forecast total cost $31m $82m
Slide 19: Portfolio well diversified
Portfolio well diversified PAGE 14 Early Learning 86% of portfolio value; Healthcare 14% of portfolio value For personal use only Tenant diversification (by income) 3% Goodstart Early 4% 7% Learning Primary Health Care Affinity Education 5% 40% 5% Oxanda Childcare 5% Petit Early Learning Journey G8
Slide 20: Outlook
Outlook PAGE 15 Sector fundamentals sound; Arena well positioned to explore future growth opportunities For personal use only • Annual rental growth underpinned by high proportion of reviews that are fixed or greater of 2.5% or CPI – FY18 DPS advantageous in a low inflation environment guidance • Gr
Slide 21: Solid investment case
Solid investment case PAGE 16 Positioned to deliver predictable and growing earnings with a scalable business model For personal use only Quality portfolio with annual rent Predictable reviews and long WALE income stream Equity raising has Population growing and Supportive increased capacity Active
Slide 22: For personal use only
PAGE 17 For personal use only Arena REIT / 2017 Annual General Meeting / www.arena.com.au
Slide 23: For personal use only
PAGE 18 For personal use only Arena REIT / 2017 Annual General Meeting / www.arena.com.au
Slide 24: Ordinary Business – Resolution 1: Remuneration Report
Ordinary Business PAGE 19 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 2017 be adopted.’ Pro
Slide 25: Resolution 2: Re-election of Mr David Ross
Other Business PAGE 20 Resolution 2: Re-election of Mr David Ross 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 David Ross, who was appointed on incorporation of the Company on 16 October 2
Slide 26: Resolution 3: Ratification of Institutional Placement
Other Business PAGE 21 Resolution 3: Ratification of Institutional Placement 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 purpose of ASX Listing Rule 7.4 and for all othe
Slide 27: Resolution 4: Performance Rights to Mr Bryce Mitchelson
Other Business PAGE 22 Resolution 4: Grant of 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 Listing Rule 10.14 an
Slide 28: Resolution 5: Performance Rights to Mr Gareth Winter
Other Business PAGE 23 Resolution 5: Grant of 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 Listing Rule 10.14 and f
Slide 29: For personal use only
PAGE 24 For personal use only Arena REIT / 2017 Annual General Meeting / www.arena.com.au
Slide 30: Important notice
Important notice PAGE 25 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