Dexus Convenience Retail Reit · ASX:DXC
Dexus Convenience Retail Reit — FY2022 Earnings Presentation
25 slides from Dexus Convenience Retail Reit's earnings presentation, Aug 8, 2022
Slide 1: Dexus Convenience Retail REIT (ASX:DXC) ASX release
Dexus Convenience Retail REIT (ASX:DXC) ASX release 8 August 2022 2022 Annual Results presentation and property synopsis Dexus Convenience Retail REIT (ASX: DXC) releases its 2022 Annual Results presentation. An investor conference call will be webcast today at 10.00am on www.dexus.com/investor-cent
Slide 2: Dexus Convenience Retail REIT 2022 Full Year Results
Dexus Convenience Retail REIT | GdexUS Pcorr : ¢ fey 8 August 2022 Dexus Asset Management Limited ACN 080 674 479 AFSL 237500 as responsible entity for Dexus Convenience Retail REIT
Slide 3: Acknowledgement of country
Dexus Convenience Retail REIT | dexus Acknowledgement of country Dexus Convenience Retail REIT acknowledges the Traditional Custodians of the lands on which our business and assets operate, and recognises their ongoing contribution to land, waters and community. We pay our respects to First Nations
Slide 4: Agenda
Agenda Introduction and highlights Financials, transactions and developments Summary Appendices Dexus Convenience Retail REIT page 4 page 9 page 15 page 17 dexus
Slide 5: Introduction and highlights
Slide 6: FY22 highlights
FY22 highlights Dexus Convenience Retail REIT | dexus Resilient portfolio characteristics enhanced by active capital management Strong financial and portfolio performance \-7 Delivered upgraded guidance (%) FFO and distributions of 23.1 cents per security, up 5.5% on FY21 Enhanced portfolio quality
Slide 7: Income certainty backed by high-quality tenant covenants
Dexus Convenience Retail REIT | dexus Income certainty backed by high-quality tenant covenants ELA. V 112 $850m properties portfolio value across Australia Contracted fixed rental increases wm f 83% 5.74% weighted to metro WACR and highway assets (by value) Longer-term income visibility — 99.7% 89%
Slide 8: A reliable custodian of capital
A reliable custodian of capital 1 2 1H22 — delivering growth during supportive market conditions ») $55.5m of new equity raised at an average price of $3.58 per security! ») Increased debt facilities by $70m yy Strategic deployment of capital into portfolio-enhancing acquisitions ») Executing develo
Slide 9: Supporting ESG initiatives through working with tenants
Dexus Convenience Retail REIT | dexus Supporting ESG initiatives through working with tenants Se te & Progress towards net zero emissions for managed portfolio! Plans to rollout solar at 29 DXC properties leased to Chevron? 3 sites with EV charging capability Supporting 16 suppliers engaged Environm
Slide 10: Financials, transactions and developments
Slide 11: FY22 financial result
FY22 financial result Strong result in line with upgraded guidance Profit & loss FY22 FY21 Change Property FFO ($m) 43.8 33.7 A 29.8% Management fees ($m) (5.0) (3.5) A 43.4% Net finance costs ($m) (6.4) (3.8) a 66.6% Other expenses ($m) (1.0) (0.5) A 80.3% FFO ($m) SIS 25.9 a 21.5% FFO (cents per s
Slide 12: FY23 change in FFO approach
Dexus Convenience Retail REIT | dexus FY23 change in FFO approach Profit & loss Fy22 > From FY23 DXC will include amortised borrowing costs in FFO, Reported aligned with PCA guidelines FFO ($m) 315 » In the FY23 statutory accounts, FY22 will be restated resulting in circa (1)% FFO impact: FFO (cents
Slide 13: Balance sheet and capital management
Dexus Convenience Retail REIT | dexus Balance sheet and capital management Actions taken in second half to respond to uncertain macroeconomic environment Key metrics 30 Jun 2022 30 Jun 2021 Material extension of debt maturity profile (total facility limit) $150m Gearing 34.7%! 28.2% $100m Cost of de
Slide 14: Portfolio valuation movements
Dexus Convenience Retail REIT | dexus Portfolio valuation movements Predictable cashflows continue to support valuations >» 3.8% ($30.8m) total increase on prior book values » 47% of valuation increase driven by contracted rental growth, providing valuation support through the cycle » Expect strong
Slide 15: Portfolio activity
Dexus Convenience Retail REIT | dexus Portfolio activity Active management approach to portfolio optimisation \ \ Acquisitions Divestments Developments / Portfolio enhancement Capital recycling and portfolio refinement Embedding future value 15 : 4 » Fund-throughs provide access to high-quality acqu
Slide 16: Summary
Slide 17: Summary and FY23 guidance
Summary and FY23 guidance Well positioned in an uncertain environment St appeal in defensive and growth attributes of convenience retail Enhancing property income and valuation resilience via active portfolio management and selective capital works projects Focused on balance sheet strength expanded
Slide 18: Appendices
Slide 19: Consolidated profit & loss statement
Dexus Convenience Retail REIT | dexus Consolidated profit & loss statement $'000 FY22 FY21 Net property income 42,678 33,232 Straight lining of rental income 5,166 4,492 Interest income 147 136 Other income - 350 Total revenue 47,991 38,210 Management fees (4,956) (3,457) Finance costs (3,398) (4,21
Slide 20: FFO reconciliation
Dexus Convenience Retail REIT | dexus FFO reconciliation $'000 FY22 FY21 Statutory net profit after tax for the period 82,639 73,818 Adjusted for: Net fair value (gain) / loss on investment properties (30,836) (42,218) Net fair value (gain) / loss on derivatives (13,136) (1,603) Incentive amortisati
Slide 21: Consolidated balance sheet
Dexus Convenience Retail REIT | dexus Consolidated balance sheet $'000 30 Jun 2022 30 June 2021 Cash and cash equivalents 5,178 786 Investment properties 850,050 632,651 Other assets 17,894 13,357 Total assets 873,122 646,794 Borrowings (299,611) (180,769) Provisions (11,256) (6,758) Other liabiliti
Slide 22: Fund-through developments
Fund-through developments Completed Total spend ($m) ‘Yield on cost (%) | Completion date Hillcrest, SA $8.5m 5.5% Nov-21 Dubbo Service Centre $8.4m 6.0% Jul-22 Stage 1, NSW Future pipeline Est. total spend ($m)' Est. yield on cost (%) Glasshouse Mountains Dual Service Centre, QLD $35m 5-6% 1. Futur
Slide 23: Market dynamics
Dexus Convenience Retail REIT | dexus Market dynamics Fuel sales volumes remain robust Transaction volumes in line with historical levels Sales volumes of petroleum products! National service stations transaction volumes? Megalitres 50,000 $600m 10% 9% 40,000 $500m 8% 400m M% 30,000 6% $300m 5% 20,0
Slide 24: Important information
Dexus Convenience Retail REIT | dexus Important information This presentation ("Material") has been prepared by Dexus Asset Management Limited (ACN 080 674 479, AFSL No. 237500) ("DXAM'’) as the responsible entity of Convenience Retail REIT No. 1 (ARSN 101 227 614), Convenience Retail REIT No. 2 (AR
Slide 25: Dexus
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