Abacus Group · ASX:ABG
Abacus — Abacus Property Group — HY16 Earnings Presentation
27 slides from Abacus's earnings presentation, Feb 18, 2016
Slide 1: HY16 Results Presentation
710 Collins Street, Melbourne VIC HY16 Results Presentation Abacus Property Group – HY16 Results Presentation 18 February 2016
Slide 2: Agenda
Agenda - HY16 highlights - Financial results and capital management - Operational updates - Investment portfolio - Property ventures - Funds management - Summary and outlook - Appendices Abacus Property Group – HY16 Results Presentation 18 February 2016 2 Westpac House, Adelaide SA
Slide 3: HY16 highlights
HY16 highlights The Group’s consolidated AIFRS statutory profit increased 21% to $75.5m Underlying profit ($m) 20.8 * Underlying Profit was $57.1m and compares favourably to the previous period which included the gain of $20.8m on the sale of Birkenhead Point 57.1 42.4 46.0 48.3 We have been active
Slide 4: Financial results and capital management
World Trade Centre, Melbourne VIC Financial results and capital management Abacus Property Group – HY16 Results Presentation 18 February 2016 4
Slide 5: All business units contribute to a good result
All business units contribute to a good result Key financial metrics Dec 15 Dec 14 Underlying Profit was $57.1 million and compares favourably to the previous period which included the gain of $20.8 million on the sale of Birkenhead Point Consolidated Group1 – AIFRS statutory profit $75.5m $62.2m 21
Slide 6: Conservative balance sheet
Conservative balance sheet Strong investment activity during the period increasing investment Balance sheet metrics Dec15 Jun15 returns on capital employed NTA per security $2.54 $2.49 Continue to recycle smaller, low growth assets into this market NTA per security less February distribution1 $2.4
Slide 7: Investment portfolio overview
Investment portfolio overview Abacus Property Group – HY16 Results Presentation 18 February 2016 7 710 Collins Street, Melbourne VIC
Slide 8: Investment portfolio of $1.5 billion
Investment portfolio of $1.5 billion Key portfolio metrics Dec 15 Jun 15 Commercial portfolio remixing continues Sale of 4 assets during the year including Greenacre Investment portfolio value1 ($m) 1,490 1,305 and Villawood industrial assets in NSW at book value for a total $21 million Commercial
Slide 9: Office portfolio
Office portfolio $490 million portfolio of 17 assets 33% of investment portfolio (by value) 7.5% 94.4% 2.1% like for weighted occupancy like income average cap (by income) growth rate Abacus Property Group – HY16 Results Presentation 18 February 2016 14 Martin Place, Sydney NSW
Slide 10: Retail portfolio
Retail portfolio 6.9% $375 million 5.2% like for weighted portfolio of like income average cap 8 assets growth rate 25% of investment portfolio (by value) 89.4% occupancy (by income) Abacus Property Group – HY16 Results Presentation 18 February 2016 10 Oasis Shopping Centre, Broadbeach QLD
Slide 11: Industrial portfolio
Industrial portfolio $111 million 1.4% like for portfolio of like income 9 assets growth 8.3% 7% of weighted investment average cap portfolio (by rate value) 95.6% occupancy (by income) Abacus Property Group – HY16 Results Presentation 18 February 2016 11 Brows Rd, Clayton VIC
Slide 12: Commercial portfolio development pipeline
Commercial portfolio development pipeline Bacchus Marsh Village Shopping Centre, Bacchus VIC Development pipeline robust with multiple projects targeting c.$58 million of investment across the next 3 years to deliver an average yield on cost of c.8% Ashfield Mall retail expansion and upgrade Bacch
Slide 13: Retail: development projects
Retail: development projects Oasis Shopping Centre, Broadbeach QLD Abacus acquired Oasis Shopping Centre in Broadbeach for $103.5 Oasis Shopping Centre, Broadbeach QLD. Acquired in a 60/40 JV for $103.5 million in a 40/60 joint venture with KKR in February 2015 million. Settlement occurred in March
Slide 14: Office: development opportunities
Office: development opportunities 14 Martin Place, Sydney NSW Key metrics Dec 15 Works completed to date include a restoration of sections of the Book value (100%) $125.0m façade Protecting the heritage nature of the property while Cap rate 6.4% maintaining A Grade status NLA 13,136m2 WALE 2.7yrs
Slide 15: Storage portfolio
Storage portfolio 3.2% $514 million RevPAM portfolio of growth1 59 assets 35% of investment portfolio (by value) 8.6% 87.3% weighted occupancy1 average cap (by income) rate Abacus Property Group – HY16 Results Presentation 18 February 2016 15 1. Excluding development assets Acacia Ridge facility, Br
Slide 16: Storage: 7.0% growth to portfolio NLA
Storage: 7.0% growth to portfolio NLA Storage portfolio: $514 million Key metrics AUS NZ Dec 15 Jun 15 17.8% increase in underlying EBITDA to $15.9 million in HY16 driven by Portfolio value ($m) 413.8 100.5 514.3 457.2 strong trading and recent acquisitions No. of storage assets 481 11 59 54 10.8%
Slide 17: Storage development opportunity
Storage development opportunity Portfolio now consists of: Geographic diversity by value 50 stabilised storage assets valued at $464.4 million ACT 5 newly converted assets with a further 2,100m2 of 13% VIC 26% undeveloped but planned NLA valued at $28.6 million 4 assets with future conversion
Slide 18: Property ventures overview
Property ventures overview Abacus Property Group – HY16 Results Presentation 18 February 2016 18 Erskineville residential projects, Sydney NSW
Slide 19: Property ventures – adding to the pipeline
Property ventures – adding to the pipeline $30.8 million underlying EBITDA contribution Key metrics Dec 15 Jun 15 2.4x increase due to an increase in finance income from new Residential exposure 99.0% 99.4% and existing projects and profit realisations Loans $339.6m $263.0m Residential development
Slide 20: Capital recycling funds pipeline
Capital recycling funds pipeline Doncaster, Melbourne VIC $56 million of recycled capital helped fund a c.$64 million increase in allocated capital for new and existing projects A number of projects settled during the period or shortly afterwards Sale of Doncaster 50/50 joint venture site in late
Slide 21: Merivale development joint venture with CDL
Merivale development joint venture with CDL Abacus entered into a residential development joint venture with City Developments Limited (CDL) [SGX:CIT – S$6.3Bn], one of Singapore’s largest residential developers The joint venture will commit to develop a residential development in Merivale Street, S
Slide 22: Current development pipeline
Current development pipeline Quay Street development, Brisbane QLD Campsie development, Sydney NSW Camellia development, Sydney NSW 78 unit residential development in Two site residential rezoning 6.8Ha residential rezoning opportunity near Brisbane has achieved 70 sales opportunity in Campsie
Slide 23: Funds management overview
Funds management overview Abacus Property Group – HY16 Results Presentation 18 February 2016 Novotel Twin Waters Resort, Sunshine Coast QLD
Slide 24: Funds management
Funds management $5.6 million underlying EBITDA contribution for the six month period $161 million of fund investments1 Each fund independent despite accounting consolidation ADIF II continues to realise assets. During the period two assets were sold for $16.9 million. Proceeds were used to repa
Slide 25: Summary and outlook
View from 33 Queen Street, Brisbane QLD Summary and outlook Abacus Property Group – HY16 Results Presentation 18 February 2016 25
Slide 26: Summary and outlook
Summary and outlook 32 Walker Street, North Sydney NSW held in joint venture We have delivered a strong underlying profit result Global equity and real estate markets suggest volatile times ahead Our balance sheet is strong, conservative and diversified by geography, sector and tenant mix Strong d
Slide 27: Disclaimer
Disclaimer The information provided in this document is general, and may not be suitable for the specific purposes of any user of this document. It is not financial advice or a recommendation to acquire Abacus Property Group securities (ASX: ABP). Abacus Property Group believes that the information