Slide 1: Viva Energy REIT FY19 Results
Viva Energy REIT FY19 Results 20 February 2020
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by Viva Energy REIT (“VVR” or “Viva Energy Future performance and forward looking statements Effect of rounding REIT”) which is a stapled entity comprising shares in Viva Energy REIT Limited This presentation contains forward-lookin
Slide 3: Market-leading national service and convenience retail network
Market-leading national service and convenience retail network Irreplicable national Portfolio distribution Predictable income Growth via Conservative Cost recovery network of 469 aligned with underpinned combination of target gearing management service station/ population density by 11.7 year contr
Slide 4: Agenda
Agenda 1. FY19 Highlights 2. Financial Results and Capital Management 3. Acquisitions and Portfolio Update 4. Strategy and Outlook 5. Questions 6. Appendices FY19 Results Presentation 4
Slide 5: FY19 Highlights
FY19 Highlights Hadyn Stephens Chief Executive Officer VER Manager Pty Limited FY19 Results Presentation 5
Slide 6: FY19 Key Highlights
FY19 Key Highlights Financial Performance Portfolio and Acquisitions Capital Management Distributable Earnings Moody’s Credit Rating Baa15 Acquired/funded $88.5m of assets3 Investment grade rating 14.54cps1 3.7% growth on FY18 15 properties Highlights strength of balance sheet and tenant covenants T
Slide 7: Financial Results and Capital Management
Financial Results and Capital Management Guy Farrands Chief Financial Officer VER Manager Pty Limited FY19 Results Presentation 7
Slide 8: Statutory Financial Performance
Statutory Financial Performance1 Full year Full year % change Rental income increased 8.6% Statutory Profit and Loss 31 December 2019 31 December 2018 FY19 vs as a result of contracted rental $m $m FY18 increases, full-year contribution from Income FY18 acquisitions and part-year contribution from
Slide 9: Distributable Earnings
Distributable Earnings1 Full year Full year Distributable Earnings of 14.54 cps Distributable Earnings 31 December 2019 31 December 2018 % change FY19 for FY19, at the top end of the $m $m vs FY18 guidance range (3-3.75% growth Statutory net profit 197.6 167.1 18.2% on FY18) Add back: 100% payou
Slide 10: Financial Position
Financial Position1 As at As at Investment properties increased Balance Sheet 31 December 2019 31 December 2018 by $156.0m (6.3%) as a result of $m $m acquisitions settled in FY19 ($60.2m) Assets and gross valuation uplift ($99.0m), offset by acquisition costs written off Cash and cash equivalents
Slide 11: Capital Management
Capital Management Full year Full year Baa1 (stable outlook)4 credit rating Capital Management 31 December 2019 31 December 2018 assigned by Moody’s, providing VVR $m $m with new options in bank and non- Facility limit 1,096.7 956.7 bank markets, both domestically and Drawn debt 846.7 852.7 offsho
Slide 12: Acquisitions and Portfolio Update
Acquisitions and Portfolio Update Hadyn Stephens Chief Executive Officer VER Manager Pty Limited FY19 Results Presentation 12
Slide 13: Valuations
Valuations Gross increase WACR VVR’s portfolio WACR has Number $m % % compressed by 3bp during FY19, driven by a 3bp tightening in metro Independent valuations: assets and an 11bp tightening in Metro 103 29.3 4.7 5.53% regional assets Regional 61 12.9 5.2 6.81% Approximately 1/3rd of the portfol
Slide 14: Acquisitions and Pipeline
Acquisitions and Pipeline FY19 Acquisitions1,2,3 Target: 100.0 100.0 88.5 80.0 16.2 77.0 2H19 2H19 16.5 1H19 44.8 2H19: Other potential acquisitions/fund-throughs in 60.0 2.0 37.3 due diligence, board approved or under offer 1 transaction 1H19: 13.7 7 transactions 40.0 Contracted acquisitions and fu
Slide 15: Portfolio Overview
Portfolio Overview VVR Portfolio as at 31 December 2019 WACR and metro/regional split by state/territory: as at 31 December 2019 Average Average2 Value Value Land area value WACR WALE Properties ($m) (%) (m2) ($m) (%) (years) Metropolitan1 315 1,940.9 73 3,687 6.2 5.43 11.9 Regional1 154 711.2 27 6,
Slide 16: Strategy and Outlook
Strategy and Outlook Hadyn Stephens Chief Executive Officer VER Manager Pty Limited FY19 Results Presentation 16
Slide 17: Key Priorities and Outlook
Key Priorities and Outlook Existing Portfolio review underway (near-term value-add opportunities, longer-term alternative use potential) Portfolio Continue to pursue acquisition and development opportunities consistent with our strategy and Growth investment criteria Strategy Targeting $100m o
Slide 18: Questions
Questions FY19 Results Presentation 18
Slide 19: Appendices
Appendices FY19 Results Presentation 19
Slide 20: Portfolio Highlights
Portfolio Highlights Strong real estate fundamentals 1.16sqm 20.2km 205 land in metro1 metro1 street frontage corner metro1 sites Convenient locations National 8.9 hectares 81% distributed network of shop area of Australian population coverage2 National distribution network 1.04sqm 169 sites New dev
Slide 21: Portfolio Evolution
Portfolio Evolution IPO As at 31 December 2019 August 2016 FY16 FY17 FY18 FY19 Number of properties no. 425 425 438 454 469 Property portfolio value $m 2,105 2,105 2,281 2,496 2,652 Occupancy % 100 100 100 100 100 Total land area sqm 1,903,422 1,903,422 1,959,739 2,107,937 2,198,086 WACR % 5.9 5.9 5
Slide 22: Lease Expiry Profile
Lease Expiry Profile One of the longest WALEs in the S&P/ASX 200 REIT Index – 11.7 years Only four leases expire over the next five years (0.9% of income) Initial IPO portfolio lease expiries commence in FY20261 Staggered lease renewal profile mitigates against renewal concentration risk Por
Slide 23: Weighted Average Cap Rate Movement Since IPO
Weighted Average Cap Rate Movement Since IPO 8.00% VVR’s portfolio WACR has compressed by 3bp during FY19, driven by a 3bp tightening in metro 7.00% 6.81% 6.83% 6.84% 6.73% assets and an 11bp tightening in regional assets 6.00% 5.87% 5.87% 5.81% 5.78% The IPO portfolio of 425 properties 5.59% 5.
Slide 24: H1 2019 Acquisition Details
H1 2019 Acquisition Details Site Address 80 Alfred Street, Warragul 7-13 Burnett Highway, Biloela 176-190 Ogilvie Avenue, Echuca 7-21 Shakespeare Street, Traralgon, 6-8 Mackay Street, Griffith VIC QLD VIC VIC NSW Region Regional Regional Regional Regional Regional Acquisition / Fund-through Fund-thr
Slide 25: H1 2019 Acquisition Details (cont'd)
H1 2019 Acquisition Details (cont’d) Site Address 5 Princes Highway, Moruya 120-124 Goldring Street, Richmond 47-55 Broad Street, Sarina 112 Shute Harbour Road, Cannonvale 10805 Brand Highway, Cataby NSW QLD QLD QLD WA Region Regional Regional Regional Regional Regional Acquisition / Fund-through Fu
Slide 26: H2 2019 Acquisition Details
H2 2019 Acquisition Details Site Address Lot 1008 Ranford Road, Canning Vale 1100 Abernethy Road, High Wycombe 233 Myrtleford Street, Myrtleford 62 Flinders Parade, North Lake 18316 Warrego Highway, Dalby West WA WA VIC QLD QLD Region Metro Metro Regional Metro Regional Acquisition / Acquisition Acq
Slide 27: Population Map Study
Population Map Study Melbourne Sydney % of metro population1 located within a 5km radius 87% 87% of VVR’s property coverage2 1 Metro population as defined by the Greater Capital City Statistical Area, sourced from the Australian Bureau of Statistics (ABS 2016 Greater Capital City Statistical Area).
Slide 28: Population Map Study
Population Map Study Brisbane Perth Adelaide % of metro population1 located within a 5km radius 76% 57% 86% of VVR’s property coverage2 1 Metro population as defined by the Greater Capital City Statistical Area, sourced from the Australian Bureau of Statistics (ABS 2016 Greater Capital City Statisti
Slide 29: Viva Energy Australia (VEA)
Viva Energy Australia (VEA) Sole right to use the Shell brand in ~25% of the Australian downstream petroleum market Australia for the sale of retail fuels2 1,266 service station sites nationwide in Viva Energy’s network Retail Alliance with Coles – refreshed and extended to 20293 44 fuel import term
Slide 30: Strategic Relationship with Liberty Oil
Strategic Relationship with Liberty Oil VVR purchases by type: Acquisition Locations of VVR ownership and development funding (A$m) of Liberty Oil branded sites Liberty Oil overview A fuel retailer with over 60 service stations (Shell or Liberty branded) 37.7, 32% Viva Energy Australia has a 50% n
Slide 31: Glossary
Glossary Alliance Gearing Significant Urban Areas The contractual alliance between Viva Energy Australia and Coles Express Net debt to total assets (excluding cash) The Significant Urban Area (SUA) structure of the Australian Statistical (and their associated entities) including the Alliance Agreeme
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