Dexus Convenience Retail Reit · ASX:DXC
Dexus Convenience Retail Reit — HY2021 Earnings Presentation
30 slides from Dexus Convenience Retail Reit's earnings presentation, Feb 16, 2021
Slide 1: HY2021 Results Presentation
HY2021 RESULTS PRESENTATION 16 FEBRUARY 2021 www.apngroup.com.au ASX Code: AQR
Slide 2: Agenda
Agenda 01 HY2021 snapshot 02 Financial performance 03 Investment overview 04 Market update and outlook Appendices 2
Slide 3: 01 HY2021 Snapshot
01 HY2021 SNAPSHOT Raceview Convenience Centre, QLD 3
Slide 4: APN Convenience Retail REIT
APN Convenience Retail REIT Investing in strategically located service stations and convenience retail assets to provide investors with an attractive, defensive and growing income stream High level of income security WALE Underpinned by a WALE of 10.6 years (78% of income expiring in FY2030 and beyo
Slide 5: HY2021 snapshot
HY2021 snapshot Financial performance Portfolio performance Capital management 11.0c $11.1m $81.9m DISTRIBUTION PER SECURITY VALUATION UPLIFT TOTAL COMMITTED 0.5% on HY2020 ACQUISITIONS 10.8c 2.9% $41.6m FFO PER SECURITY CONTRACTED ANNUAL NEW EQUITY RAISED2 0.4% on HY20201 RENTAL GROWTH $3.35 10.6 y
Slide 6: Delivering on growth strategy
Delivering on growth strategy Portfolio growth since IPO $33m $44m $609m $72m $532m $58m $448m $11m $7m $32m $41m $11m $358m $340m $287m $12m AQR IPO Acquisitions Jun-18 Acquisitions Jun-19 Net acquisitions, Jun-20 Acquisitions, Dec-20 Contracted Acquisitions under Pro forma (Jul-17) + revaluations
Slide 7: 02 Financial Performance
02 FINANCIAL PERFORMANCE Brisbane Airport Link Service Centre, QLD 7
Slide 8: HY2021 financial performance
HY2021 financial performance Transparent income streams and capital structure A$m HY2021 HY2020 Change ▪ FFO of 10.8 cents per security, up 0.4% on HY2020 Net property income 15.8 12.7 24.4% ▪ Distributions of 11 cents per security, up 0.5% on Straight lining of rental income 2.2 2.0 4.8% HY2020 Tot
Slide 9: Balance sheet
Balance sheet Dec June ▪ NTA per security increased by 8 cents (+2.4%) during the period A$m 2020 2020 Change – Up 22 cents (+7%) on Dec 2019 Assets ▪ $83.3 million increase in investment properties primarily due to: Cash and cash equivalents 7.5 2.3 Large – $54m of completed property acquisitions I
Slide 10: Capital management
Capital management Balance sheet well capitalised for growth Key metric Dec 2020 June 2020 ▪ New equity raised of $41.6m during the period1 Facility limit $165.0m $165.0m ▪ $30m of new swaps entered into for an average term of 3.5 years Drawn debt $120.3m $76.5m and average fixed rate of 0.31% Undra
Slide 11: 03 Investment Overview
03 INVESTMENT OVERVIEW Woolworths Caltex Capalaba, QLD 11
Slide 12: Attractive convenience retail portfolio – long leases to quality tenants
Attractive convenience retail portfolio – long leases to quality tenants 6.3% 90.1% $77.3m 100% DISTRIBUTION TAX ACQUISITIONS & OCCUPANCY YIELD1 DEFERRED DEVELOPMENT PIPELINE 88 $525m 6.5% 10.6 PROPERTIES PORTFOLIO WACR WALE VALUE (YEARS) DIVERSIFIED AND DEFENSIVE LONG LEASE PORTFOLIO SUSTAINABLE AN
Slide 13: Diversified portfolio
Diversified portfolio Major tenants 79% of the portfolio is located in 52.6% Australia’s eastern seaboard states 13.5% 12.3% 7.9% 3.0% Major tenants account for 2.5% 94% of portfolio income 1.6% 58 sites $313m value 1.2% 11 sites 6.6% WACR $64m value 10.3 WALE Complementary 6.9% WACR 5.5% retail 10.
Slide 14: Sustainable and secure income through long dated leases
Sustainable and secure income through long dated leases Rent review type by income ▪ 78% of lease income expiring FY30 and beyond ▪ New long term lease deals completed in HY2021 CPI 16% – 7-Eleven Raceview – 12 year lease extension from Oct 2021 (FY22) to Oct 2033 (FY34) – 7-Eleven Maroochydore – ne
Slide 15: Development projects
Development projects ▪ Three development projects completed during the period ($17.5m) – Nine development projects completed since December 2020 ▪ Committed to two new projects during the period (Paradise and Lonsdale) valued at $10.2m ▪ Further development opportunities continuing to emerge as vend
Slide 16: Acquisitions enhancing portfolio scale and diversity
Acquisitions enhancing portfolio scale and diversity HY2021 acquisitions1 ▪ Brisbane Airport Link, QLD ▪ Berrinba, QLD ($8m – settled ▪ Lonsdale, SA ($4.5m) ($10.5m) Jan 2021) ▪ Paradise, SA ($5.7m) ▪ Moorooka, QLD ($10.2m) ▪ Southern River, WA ($5.9m – settled Jan 2021) $44.5m WACR 6.14% ▪ Cairns,
Slide 17: APN Property Group – aligned and experienced manager
APN Property Group – aligned and experienced manager Strong investor Focused and Governance Manager with long alignment dedicated overseen by an track record and ▪ APN is strongly aligned to management team independent Board deep relationships delivering investor returns – owning a $44 million co- ▪
Slide 18: 04 Market Update & Outlook
04 MARKET UPDATE & OUTLOOK Brisbane Airport Link Service Centre, QLD 18
Slide 19: Market update
Market update ▪ The asset class attracted record levels of demand in 2020 as investors focused on defensive assets with high exposure to non-discretionary consumer expenditure – Transaction volumes up 60% on 2019 to $614 million1 – Average sale yield of 5.75%, down from 6.12% in 2019 – Private buyer
Slide 20: Outlook and guidance
Outlook and guidance Secure and growing income profile backed by long term leases to quality tenants ▪ AQR is well positioned – Passive income stream with contracted rental increases providing sustainable income growth – Strong balance sheet with lower gearing – 21.1% (30.7% pro forma) vs 24.6% at D
Slide 21: Appendices
APPENDICES Liberty Pooraka, SA 21
Slide 22: Profit and Loss statement
Profit and Loss statement Financial period ended HY2021 HY2020 $’000 $’000 Income Net property income 15,826 12,667 Straight lining of rental income 2,151 2,052 Interest income 9 14 Total income 17,986 14,733 Expenses Management fees (1,626) (1,202) Finance costs (2,036) (2,352) Corporate costs (136
Slide 23: Reconciliation to FFO
Reconciliation to FFO Financial period ended HY2021 HY2020 $’000 $’000 Statutory net profit 21,044 19,464 Adjusted for: Straight line lease revenue recognition (2,151) (2,052) Fair value (gain) on investment properties (6,650) (8,421) Fair value (gain) on derivatives (206) (153) Amortisation of borr
Slide 24: Portfolio revaluations
Portfolio revaluations 2.5% portfolio revaluation uplift Valuation change ▪ Valuation uplift of $11.1 million driven by a combination No. of Valuation Cap Site type properties ($m) rate of annual rental increases and cap rate compression ($m) % ─ Portfolio weighted average cap rate tightened Metropo
Slide 25: Property portfolio
Property portfolio Major Site Book value Cap rate WALE Occupancy Land Area Property State Tenant Type ($m) (%) (years) (by income) (sqm) 440 Roadhouse WA Chevron Regional $5.4 7.75% 13.6 100% 11,372 Acacia Ridge QLD Viva Energy Metropolitan $10.7 6.00% 7.8 100% 6,098 Aeroglen QLD Chevron Metropolita
Slide 26: Property portfolio
Property portfolio Major Site Book value Cap rate WALE Occupancy Land Area Property State Tenant Type ($m) (%) (years) (by income) (sqm) Edinburugh SA Viva Energy Metropolitan $5.7 5.75% 14.5 100% 9,371 Enoggera QLD Chevron Metropolitan $2.2 6.50% 12.6 100% 1,093 Garbutt QLD Chevron Metropolitan $2.
Slide 27: Property portfolio
Property portfolio Major Site Book value Cap rate WALE Occupancy Land Area Property State Tenant Type ($m) (%) (years) (by income) (sqm) Mt Larcom QLD Chevron Highway $8.0 6.50% 12.6 100% 12,482 Murrarie QLD EG Australia Metropolitan $5.5 7.00% 0.6 100% 3,625 Nambour QLD Chevron Metropolitan $1.5 7.
Slide 28: Property portfolio
Property portfolio Major Site Book value Cap rate WALE Occupancy Land Area Property State Tenant Type ($m) (%) (years) (by income) (sqm) Woodridge QLD 7-Eleven Metropolitan $6.0 6.25% 8.9 100% 1,609 Woree QLD Chevron Metropolitan $1.7 6.75% 12.0 100% 1,376 Yanchep WA Chevron Metropolitan $6.3 6.75%
Slide 29: Disclaimer
Disclaimer This presentation has been prepared by APN Funds Management Limited (ACN 080 647 479, AFSL No. 237500) (the "Responsible Entity") as the responsible entity and issuer of the financial products in respect of Convenience Retail REIT No. 1 (ARSN 101 227 614), Convenience Retail REIT No. 2 (A
Slide 30: Contact
Contact Chris Brockett Fund Manager, APN Convenience Retail REIT Ph: (03) 8656 1000 : cbrockett@apngroup.com.au ASX Code: AQR Follow us… @apngroup APN Property Group Limited Level 30,101 Collins Street, APN Property Group Limited Melbourne, Vic 3000 apnpropertygroup apngroup.com.au http://blog.apng
Dexus Convenience Retail Reit — HY2021 Earnings Presentation on 6ix