Abacus Group · ASX:ABG
Abacus — Abacus Property Group — FY2018 Earnings Presentation
22 slides from Abacus's earnings presentation, August 2018
Slide 1: FY18 Results Presentation
452 Johnston Street, Abbottsford VIC FY18 Results Presentation Abacus Property Group – FY18 Results Presentation
Slide 2: FY18 financial summary
FY18 financial summary 14 Martin Place, Sydney NSW Statutory profit Underlying profit FFO $243.7 million $183.3 million $169.8 million Down 15% Down 2% Up 9% 710 Collins Street, Melbourne VIC Underlying EPS Underlying DPS Payout ratio 31.7 cps 18.0 cps 61.3% of FFO Down 3% Up 3% Total assets Group g
Slide 3: FY18 highlights
FY18 highlights IVY &EVE apartments, Brisbane QLD Review of current strategy confirmed trajectory of Abacus Office and Self Storage preferred sectors Tactical reduction in exposure to retail, residential and land Enhanced quality of investment portfolio Acquired $277 million of longer dated ci
Slide 4: Strategy confirmed
Strategy confirmed Following transition to new Managing Director, review undertaken of current market conditions, project status and outlook to confirm strategic direction Enhancement to existing business structure/process with focus on resourcing, systems and workplace design as a driver of superio
Slide 5: Focusing on core strategies
Focusing on core strategies Non-core realisations to provide additional liquidity 1. As at 30 June 2017 includes $89.8m of investments in other assets not pictured above 2. As at 30 June 2018 includes $138m of investments in other assets not pictured above. 30 June 2018 balances have been adjusted f
Slide 6: Financial results and capital management
324 Queen Street, Brisbane QLD Financial results and capital management Abacus Property Group – FY18 Results Presentation
Slide 7: Diversified business delivers strong results
Diversified business delivers strong results Key financial metrics Jun 18 Jun 17 Underlying earnings per security strong at 31.7c Consolidated Group1 AIFRS statutory $243.7m $285.1m Underlying results supported from solid results across all business units profit Abacus AIFRS statutory profit $244.9m
Slide 8: Conservative balance sheet
Conservative balance sheet NTA per security grew by 8.5% to $3.18 driven by strong earnings Balance sheet metrics Jun 18 Jun 17 performance across the business and portfolio cap rate compression NTA per security $3.18 $2.931 Abacus total assets $2,718m $2,369m Balance sheet gearing increased slightl
Slide 9: Investment portfolio overview
Investment portfolio overview Abacus Property Group – FY18 Results Presentation 710 Collins Street. Melbourne VIC
Slide 10: High conviction investor and manager
High conviction investor and manager Key portfolio metrics FY18 FY17 Investment portfolio composition changes seen to drive more sustainable returns Investment portfolio value1 ($m) 2,130 1,831 Full year effect of recent acquisitions, totalling over $277 million, Commercial portfolio1 ($m) 1,464 1,2
Slide 11: Expanding partnerships
Expanding partnerships $1.8 billion current AUM ($650m Abacus share) Abacus ‘high conviction’ manager and investor Continued to developed high quality partnerships during the year highlighting desire to form long term strategic partnerships with likeminded institutions that share our investment th
Slide 12: City fringe and CBD office
City fringe and CBD office Capital allocation within the office sector will be consistent with prior messaging aimed at acquiring assets that will create value over the longer term Strong track record in ability to acquire core and core plus assets that we can develop into core Future direction will
Slide 13: Acquisitions to add to FY19 revenues
Acquisitions to add to FY19 revenues $277 million of acquisitions in the period will deliver $15 million of net property income in FY19 Strong fundamentals drive earnings and value growth over the long term 464 St Kilda Rd St 187 Todd Road Port 452 Johnston St 63 Ann Street 11 Bowden St Kilda Melb
Slide 14: Self Storage
Self Storage Self Storage has been one of the best performing asset classes globally and in Australia It has been Abacus’ best performing sector since ownership and forecast to offer strong risk adjusted returns over long term We will continue to allocate increasing capital to this sector Key ex
Slide 15: Self Storage development pipeline
Self Storage development pipeline Development pipeline of c.$60 million will deliver over 45,000 square metres of New NLA over the next 3 years Anticipated return on invested capital greater than 9.0% Delivers 20% valuation uplift when capped at average portfolio cap rate of 7.5% 1. Based on net
Slide 16: Retail – Long term partnership formed
Retail – Long term partnership formed Abacus exposure to the retail sector is through its super convenience assets Inner suburban traders that dominate the convenience markets with proximity to transport hubs with sufficient parking infrastructure Incorporate up to 3 national brand supermarkets
Slide 17: Residential overview – Developments – Land
The Eminence residential development, Carlton, Melbourne VIC Residential overview – Developments – Land Abacus Property Group – FY18 Results Presentation
Slide 18: Residential – 48% project reduction in FY19
Residential – 48% project reduction in FY19 $151 million of capital and interest repayments offset by additional interest accruals and drawdowns across residential platform Project pipeline remains heavily exposed to the Sydney market with low average exposure at $58,000 per lot/unit Internal re
Slide 19: Residential – land
Residential – land $317 million of capital invested largely across 12 residential land projects Camellia, Riverlands and Lane Cove projects in Sydney NSW 100% exposure to the Sydney metropolitan market Review highlighted several value appreciation/realisation opportunities Currently have active pu
Slide 20: Summary
Summary Abacus Property Group – FY18 Results Presentation Artist’s impression of Ashfield Central residential development, Sydney NSW
Slide 21: ‘Evolution of Abacus’
‘Evolution of Abacus’ 187 Todd Road, Port Melbourne, VIC Strong underlying profit result in-line with last years performance Rewarding delivery of long and short dated projects Given current market conditions, internal review has affirmed current trajectory towards higher than previous levels of s
Slide 22: Important information
Important information 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 i