Peet Limited · ASX:PPC
Peet — Investor Presentation (February 2024)
31 slides from Peet's investor presentation, Feb 22, 2024
Slide 1: 1H24 Results
1H24 RESULTS 22 February 2024
Slide 2: Agenda
1H24 Results AGENDA 01 02 03 04 05 Group Results Operating Outlook Q&A Highlights Overview Performance Page 2 | 1H24 Results
Slide 3: Company Overview
Company Overview • Leading Australian developer of quality residential communities with a proven track record for over 128 years WHOLESALE/ INSTITUTIONAL 9,089 lots1 • Large, nationally diverse land bank provides $2.6bn GDV2 economies of scale to deliver a wide range of product at lower cost PIPELIN
Slide 4: Strong Platform for Growth
Strong Platform for Growth GEOGRAPHICALLY DIVERSE $13.3bn • Benefit from various growth corridors – positioned for future Australian population growth END VALUE1 • • Allows Peet to leverage state-based fluctuations Ability to manage land bank and capital through market cycles 44 HIGHLY DESIRABLE LOC
Slide 5: Our Commitment to Sustainability
Our Commitment to Sustainability OUR SUSTAINABILITY APPROACH As a leading residential developer with a large national footprint, our approach focuses on sustainable practices to create long-term shared value for our communities, shareholders and people ENVIRONMENT SOCIAL GOVERNANCE ENVIRONMENTALLY C
Slide 6: Group Highlights
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Slide 7: 1H24 Results Highlights
1H24 Results Highlights SOLID PERFORMANCE IN CHALLENGING CONDITIONS FINANCIAL OPERATIONAL 1H24 DPS 1,111 1H24 Net Operating Profit1 $15.5m 1.50c 1,106 LOTS5 SETTLED LOTS5 SOLD (56%) on 1H23 (57%) on 1H23 Operating Earnings per Share NTA2 $444m 2 3.28c $1.28 CONTRACTS ON HAND VALUE NEW PROJECTS COMME
Slide 8: Delivering against our Strategy
Delivering against our Strategy SIGNIFICANT VALUE TO BE UNLOCKED INVEST in high quality land EXPAND product offering MAINTAIN strong capital VALUE CREATION in strategic locations across and geographic presence to appeal management • Good visibility of future earnings country to wider variety of cust
Slide 9: Results Overview
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Slide 10: Group 1H24 Financial Results
Group 1H24 Financial Results SOLID RESULT REFLECTS PORTFOLIO QUALITY KEY PERFORMANCE STATISTICS 1H24 1H23 VAR (%) Sales higher due to increased activity in WA, Qld and SA 1 Lot sales 1,106 608 82% Lot settlements1 1,111 998 11% Settlements were higher predominantly driven by WA and SA projects Reven
Slide 11: Group Cash Flow Summary
Group Cash Flow Summary 1H24 1H23 CASH FLOWS RELATED TO OPERATING ACTIVITIES $M $M Receipts from customers 156.6 182.9 Receipts lower due to the impact of the New Beith (Qld) settlement Payments for development and infrastructure (111.2) (80.2) in 1H23 partially offset by increased settlement revenu
Slide 12: Group Balance Sheet
Group Balance Sheet CAPITAL MANAGEMENT METRICS 1H24 FY23 Total assets1 $1,102.3m $1,030.4m Does not fully reflect market value of Development projects and co- investment stakes in Funds and JVs Book NTA per share1 $1.28 $1.28 Cash and debt facility headroom of more than $123m provides Cash at bank2
Slide 13: Our Shareholder Returns
Our Shareholder Returns We have returned $192m to shareholders since FY18, through fully franked dividends and our ongoing capital management program SHAREHOLDER RETURNS SINCE FY18 ($M) • Disciplined application of our capital management framework and strong balance sheet means shareholders benefit
Slide 14: Operating Performance
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Slide 15: Group Operating Performance
Group Operating Performance INCREASED DEVELOPMENT WEIGHTING DELIVERING RESULTS • Group EBITDA1 down 47% - Settlement of New Beith (Qld) 21% property in 1H23 EBITDA1,2 12% 9% - Joint venture earnings lower due to COMPOSITION BY lower equity accounted profits from BUSINESS TYPE (%) ACT Development 52%
Slide 16: Group Sales and Settlement Activity
Group Sales and Settlement Activity IMPROVED MARKET CONDITIONS IN WA DRIVING SALES PERFORMANCE • Group sales for 1H24 of 1,106 lots1 7% 20% - Strong improvement across the WA and SA markets 16% SALES - Sales activity across Qld COMPOSITION BY 14% continues to improve 17% GEOGRAPHY (LOTS1) Vic - Indi
Slide 17: Enquiry Levels Continue to Improve
Enquiry Levels Continue to Improve 11,716 11,954 • Enquiry levels during 1H24 were generally in line with 2H23 and materially higher than in 1H23: 8,896 - 2Q24 enquires increased by more than 7,838 10% compared to 1Q24 7,472 6,986 6,579 6,956 6,327 6,812 - First home buyer activity has increased by
Slide 18: Outlook
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Slide 19: New Projects Provide Medium Term Earnings Visibility
New Projects Provide Medium Term Earnings Visibility PIPELINE OF APPROXIMATELY 35,200 LOTS PROVIDING VISIBILITY OF FUTURE EARNINGS FY24 – FY26 NEW PROJECT RELEASE SCHEDULE1 • Up to two new land community projects and six PROJECT STATE SEGMENT PROJECT LOTS3/ GDV4 PROJECT LAUNCH2 UNITS LIFE townhouse/
Slide 20: FY24 Focus
FY24 Focus PORTFOLIO WELL-POSITIONED FOR POSITIVE GROWTH AND VALUE CREATION EXPAND product offering and MAINTAIN strong capital INVEST in high quality land geographic presence to appeal to management in strategic locations across wider variety of customers country • Focus on improving operating cash
Slide 21: Group Outlook
Group Outlook • Various State and Territory residential markets are at Focused on positioning the Group for different points in their respective property cycles growth through a prudent approach to • Cost of living pressures and consumer confidence continue to result in a cautious sentiment, however
Slide 22: Appendices
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Slide 23: FM Operating Performance
FM Operating Performance KEY PERFORMANCE STATISTICS 1H24 1H23 VAR (%) Lot sales1 683 240 185% Lot sales were higher due to increased activity in Qld and WA 1 Lot settlements 530 481 10% Revenue $10.7m $3.9m 174% Revenue increased due to higher fees as a result of sales Share of net profit of equity
Slide 24: JV Operating Performance
JV Operating Performance KEY PERFORMANCE STATISTICS 1H24 1H23 VAR (%) Lot sales1 85 127 (33%) Sales and settlements volumes impacted by market conditions 1 Lot settlements 157 284 (45%) in ACT Revenue $14.7m $18.0m (18%) Share of net profit of equity accounted investments $4.7m $8.7m (46%) EBITDA2,3
Slide 25: Development Operating Performance
Development Operating Performance KEY PERFORMANCE STATISTICS 1H24 1H23 VAR (%) Lot sales1 338 241 40% Lot settlements1 424 233 82% Lower revenue and EBITDA2 due to settlement of New Beith (Qld) property in 1H23, partially offset by increased Land only 388 189 105% settlements across the Development
Slide 26: Summary Income Statement
Summary Income Statement 1H24 1H23 VAR $M $M (%) Funds Management 10.7 3.9 174% Development 117.6 144.6 (19%) Joint Venture 14.7 18.0 (18%) Share of net profit of equity accounted investments 8.3 12.6 (34%) Other1 5.6 0.2 2700% Revenue 156.9 179.3 (12%) EBITDA 28.9 55.0 (47%) Finance costs2 (7.2) (5
Slide 27: Summary Balance Sheet
Summary Balance Sheet 1H24 FY23 $M $M Assets Cash and cash equivalents 36.6 38.8 Receivables 79.0 71.6 Inventories 783.6 718.7 Investments accounted for using the equity method 195.0 194.4 Other 8.1 6.9 Total assets 1,102.3 1,030.4 Liabilities Payables 35.5 48.7 Land vendor liabilities 64.9 21.1 Bor
Slide 28: Land Bank Development Key Projects
Land Bank Development Key Projects PROJECT NAME STATE GDV1 LOTS REMAINING2 2024 2025 2026 2027 2028 Greenlea WA $2m 1 Glyde Street WA $64m 50 Glendalough WA $91m 100 Other WA $763m 3,844 Gladstone Qld $10m 325 Palmview Qld $40m 101 Spring Mountain Qld $53m 108 Strathpine Qld $8m 12 Nudgee Qld $63m 8
Slide 29: Land Bank Funds Management Key Projects
Land Bank Funds Management Key Projects PROJECT NAME STATE GDV1 LOTS REMAINING2 2024 2025 2026 2027 2028 Alkimos WA $903m 1,531 Brabham WA $606m 2,574 Burns Beach WA $138m 237 Eglinton WA $209m 823 Golden Bay WA $83m 422 Lakeland Estates WA $147m 670 Yanchep Golf Estate WA $368m 1,446 Oakford WA $17
Slide 30: Land Bank Joint Venture Key Projects
Land Bank Joint Venture Key Projects PROJECT NAME STATE GDV1 LOTS REMAINING2 2024 2025 2026 2027 2028 Wellard WA $36m 181 Edens Crossing Qld $145m 419 Googong3 NSW $616m 1,126 St Clair SA $20m 82 Forestville SA $102m 188 Total Joint Venture $919m 1,996 Total Pipeline $13,293m 35,186 Notes: 1 Gross D
Slide 31: Disclaimer
Disclaimer 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. This presentation contains forward-looking statements, including sta