Peet Limited · ASX:PPC
Peet — Macquarie Capital Securities Australian Conference 2008
38 slides from Peet's conference presentation, May 8, 2008
Slide 1: Macquarie Capital Securities Australian Conference 2008
For personal use only PEET LIMITED Macquarie Capital Securities - Australian Conference 2008
Slide 2: About Peet Limited
About Peet Limited For personal use only » ASX listed (ASX:PPC) with market capitalisation of around $600 million » Manages assets worth more than $1.7 billion » Has the third largest land bank among ASX-listed property companies – around 38,500 lots with an estimated on-completion value of $7.6 bil
Slide 3: 1H08 Highlights
1H08 Highlights For personal use only Half year earnings in line with expectations at $15.3 million; underlying operating businesses are in good shape » Half year net profit after tax of $15.3 million (1H07: $19.4 million) » Interim dividend of 9.0 cents per share fully franked paid 18 April 2008 (1
Slide 4: Group Financial Performance
For personal use only Group Financial Performance growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 5: Group Results
Group Results Peet has a solid track record, driven by a strong transparent business model For personal use only and a quality land bank » FY08 results are expected to be heavily weighted in the 2H08 due to the large number of lots under contract 1H08 1H07 FY07 Revenue $57.8M $61.4M $129.1M Net prof
Slide 6: EBIT Composition by Business Type
EBIT Composition by Business Type High quality earnings stream For personal use only » Vic and Qld contributed 61% of 1H08 EBIT » Qld contribution continues to grow » Owned project margin slightly down due to bringing on new stages in Vic to meet strong demand 1H08 EBIT Composition by Business Type
Slide 7: EBIT Margins
EBIT Margins High quality earnings stream, weighted to funds management For personal use only » Up to eight syndicate projects commencing development during FY09 » FY08 margins from owned and syndicated projects to be in line with FY07 EBIT margins by division 1H08 FY07 FY06 Funds management/land sy
Slide 8: Financial Performance
Financial Performance Peet has recorded and continues to target solid earnings growth For personal use only » Four years historical NPAT growth of 23.9% (CAGR) » Overall improvement in EBIT margin to 51.6% during FY07 » Up to 13 new owned and syndicated projects commencing development during FY09 Hi
Slide 9: Capital Management
Capital Management Peet is well positioned with all debt secured by a portfolio of high quality For personal use only property assets and strong operating cash flows » Senior debt facilities – 3 year evergreen » Gearing higher due to timing of settlement cash flows » Syndicate debt is all non-recour
Slide 10: Land Bank and Market Position
For personal use only Land Bank and Market Position growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 11: Strategic Growth Model
Strategic Growth Model Peet’s strategic objective is to deliver EPS growth and TSR out-performance For personal use only » Funds and asset management underpinned by Australia’s third largest land bank (ASX) and an established company-owned distribution network » Business model allows use of syndicat
Slide 12: Land Bank and Market Position
Land Bank and Market Position Significant land bank with an on-completion value of approximately For personal use only $7.6 billion1 » Australia’s third largest land bank amongst ASX listed entities » Existing controlled lots stand at approximately 38,000 with a further pipeline of 575 lots under co
Slide 13: Land Bank
Land Bank For personal use only » Peet has established a quality national land bank that provides a diversified production profile » 73 projects » 38,000 lots managed or QLD owned 13 Projects » Large and growing exposure to 6,000 Lots WA 16% improving east coast property 29 Projects 17,320 Lots mark
Slide 14: Diversified Pipeline
Diversified Pipeline Development pipeline continues to facilitate future growth – 17 new projects For personal use only commencing development in next 18 months $7.6b Development Pipeline » 13 new east coast projects coming into production » Increased pipeline in key markets – $2.1b around 5,450 lot
Slide 15: Syndicated and JV Project Pipeline
Syndicated and JV Project Pipeline Some 20,600 lots under management, with an estimated on-completion For personal use only value of $4.8 billion1 » Increased profitability projected over longer term as increased profit shares are realised on more recent syndicates 2 No. of Lots 2008 2009 2010 2011
Slide 16: Owned Project Pipeline
Owned Project Pipeline Some 17,400 lots owned with a combined estimated on-completion value of For personal use only $2.2 billion1 » Owned projects contributing to profits projected to increase from 11 in FY08 to 14 in FY09 » Number of owned projects have historically low cost base No. of Lots2 2008
Slide 17: Estates – Western Australia
Estates – Western Australia For personal use only Enriching lives since 1895 | www.peet.com.au 17
Slide 18: Estates - Victoria
Estates - Victoria For personal use only Enriching lives since 1895 | www.peet.com.au 18
Slide 19: Estates - Queensland
Estates - Queensland For personal use only Enriching lives since 1895 | www.peet.com.au 19
Slide 20: Alkimos Project
For personal use only Alkimos Project growth and diversity Enriching lives since 1895 | www.peet.com.au 20
Slide 21: Project Overview
Project Overview Key strategic objective achieved; institutional distribution capability For personal use only established » Acquisition of coastal residential zoned project – 40km north of Perth CBD » Project duration of approximately 12 years » Estimated sales revenue of approximately $1.4billion
Slide 22: The Site
The Site For personal use only » Wide diversity of housing » R20 single housing – R80 multistorey » High densities – close to coast and train station precinct » Primary school » Serviced commercial » Retail » Transit orientated uses Enriching lives since 1895 | www.peet.com.au 22
Slide 23: Local Structure Plan - Overview
Local Structure Plan - Overview For personal use only » Land zoned residential » Total yield 2,852 lots » Opportunities to modify layout » LSP preparation and approval 1-2 years » Detailed design and construction 1st stages – 8 -12 months Enriching lives since 1895 | www.peet.com.au 23
Slide 24: Funds Management, Retirement and Built Form
For personal use only Funds Management, Retirement and Built Form growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 25: Syndicate Capital Raising and Distribution
Syndicate Capital Raising and Distribution For personal use only Direct retail distribution network of around 4,000 active investors; strong repeat investment in excess of 65% » Peet syndicates are special purpose companies established to acquire specific assets » Expansion of existing funds managem
Slide 26: Retirement - Senior Living
Retirement - Senior Living For personal use only » Demographics point to major growth opportunity » Priority is organic growth – adding value to Peet land estates » Solid pipeline of developments already identified » Focus on strata-title resort-style villages » Initial projects – Lakelands, Warner
Slide 27: Commercial and Residential Built Form
Commercial and Residential Built Form For personal use only Strong pipeline of residential built form and commercial projects identified in land bank; potential syndication and income fund feedstock » Peet Living delivers value-added living solutions to desirable suburbs and locations, offering bout
Slide 28: Market Conditions and Outlook
For personal use only Market Conditions and Outlook growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 29: Market Overview
Market Overview Low Unemployment is Supporting Strong Immigration For personal use only Residential demand underpinned by: 14.0 Growth 160,000 12.0 140,000 » Population growth 120,000 Unemployment rate (%) 10.0 » Employment growth Immigration p.a. 100,000 8.0 » Historically low vacancy rates 80,000
Slide 30: Market Outlook - Residential
Market Outlook - Residential For personal use only Peet is well placed to take advantage of improving market conditions in the east coast market Last 6 Months Next 12 Months Strong market fundamentals as VIC Strengthening demand. demand outstrips supply. ▲ ◀▶ Outer suburban markets slowed albeit fro
Slide 31: Population Growth
Population Growth For personal use only Overseas migration continues to underpin population growth across Australia » Australia’s population rose by 315k (1.53%) in the year to June 2007. The highest since the early 1980’s - Driven by 177k net migration and 138k natural rise » Overseas migration is
Slide 32: Market Environment - WA
Market Environment - WA For personal use only » The residential market in Western Australia is some 18 months into a correction phase following the market peak in late 2006. » Evidence from the preceding four market cycles in WA would suggest that a recovery in real estate Perth Median Rent and Vaca
Slide 33: Strong Population Growth has Driven Housing Demand
Strong Population Growth has Driven Housing Demand For personal use only Underlying housing demand running at approximately 3,365 dwellings per week » Dwelling commencements continue to trail underlying demand Underlying Demand Dwellings Dwelling Stock Deficiency ('000's) Average Commencement As at
Slide 34: Record Low Vacancy Rates
Record Low Vacancy Rates For personal use only All key states experiencing record low vacancy rates » A tightening rental market is resulting in rents rising which may also drive prices further » A “neutral” residential vacancy rate would be close to 3% % 9 8 MELB BRIS 7 PERTH AUS Qtr’ly Vacancy Rat
Slide 35: Peet's Growth Strategy
Peet’s Growth Strategy For personal use only Solid and transparent platform for growth from existing businesses » Continuing to focus on our core business to deliver sustainable growth in earnings » Growing our existing funds management platform and capital partnering relationships; » Continuing to
Slide 36: About Peet
About Peet More than a 112 year track record of Asset and Funds Management For personal use only Enriching lives since 1895 | www.peet.com.au 36
Slide 37: Disclaimer
Disclaimer For personal use only While every effort is made to provide accurate and complete information, Peet does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. Subject to any terms implied by law and which
Slide 38: Asset Manager, Land Syndicator, Fund Manager
Asset Manager Land Syndicator Fund Manager For personal use only growth and diversity Enriching lives since 1895 | www.peet.com.au 38
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