Peet Limited · ASX:PPC
Peet — Macquarie WA Forum Conference 2019
28 slides from Peet's conference presentation, Dec 2, 2019
Slide 1: Macquarie WA Forum Conference Presentation
For personal use only MACQUARIE WA FORUM CONFERENCE PRESENTATION 2 DECEMBER 2019 MACQUARIE WA FORUM CONFERENCE ǀ 2 DECEMBER 2019 ǀ PAGE 1 1
Slide 2: Who We Are
WHO WE ARE CAPITAL LITE FUNDS MANAGEMENT MODEL • Property development company established in 1895 For personal use only • Listed on the ASX in 2004 • Australia’s largest listed ‘pure play’ residential property developer • Manages a broad property portfolio, encompassing about 48 projects encompassin
Slide 3: National Reach
NATIONAL REACH EXPANDING PORTFOLIO ACROSS COUNTRY 49,413 Peet manages a broad property portfolio, encompassing 49,400 LOTS For personal use only lots across 48 projects Diversified land bank $14.5bn strategically located in growth END-VALUE corridors of major cities in every mainland state and terri
Slide 4: Net Tangible Assets (NTA)
NET TANGIBLE ASSETS (NTA) SIGNIFICANT OPPORTUNITY TO CAPTURE FUNDS MANAGEMENT VALUE NET ASSET VALUATION - $2.1bn in Assets Under Management For personal use only PEET CAPITAL THIRD PARTY CAPITAL NTA: $1.20 NTA PEET INVENTORIES PEET CO-INVESTMENTS FUNDS MANAGEMENT AND JV $388 million1 $467 million1 $
Slide 5: Delivering Against Our Strategy
DELIVERING AGAINST OUR STRATEGY PORTFOLIO WELL POSITIONED FOR POSITIVE MEDIUM TO LONG TERM GROWTH AND VALUE CREATION For personal use only STRATEGY KEY ACHIEVEMENTS (FY19) • 49,400 lots with an end value of $14.5bn Invest in high quality land in strategic INVEST locations across country • Four mediu
Slide 6: FY19 Results Overview
For personal use only FY19 RESULTS OVERVIEW MACQUARIE WA FORUM CONFERENCE ǀ 2 DECEMBER 2019 ǀ PAGE 6
Slide 7: Long-Term Growth in Shareholder Returns
LONG-TERM GROWTH IN SHAREHOLDER RETURNS KEY HIGHLIGHTS OPERATING PROFIT AFTER TAX ($M) OPERATING EPS (CENTS) DPS (CENTS) For personal use only 49.1 10.0 5.0 5.0 47.5 9.8 44.8 4.8 42.6 9.1 4.5 4.5 8.7 38.5 8.3 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 LONG-TERM GROWTH
Slide 8: Market Overview + Project Pipeline
For personal use only MARKET OVERVIEW + PROJECT PIPELINE MACQUARIE WA FORUM CONFERENCE ǀ 2 DECEMBER 2019 ǀ PAGE 8
Slide 9: Enquiry Levels Improving
ENQUIRY LEVELS IMPROVING TOTAL ENQUIRY BY STATE • Enquiry levels improving following the Federal VIC QLD election, interest rate and income tax cuts and 1000 1500 For personal use only improved loan serviceability assessments by 900 banks 800 700 • Prices stabilised across the portfolio with VIC 600
Slide 10: Contracts on Hand
CONTRACTS ON HAND 2500 CONTRACTS ON HAND1 (LOTS) CONTRACTS ON HAND REFLECTS IMPROVING MARKET CONDITIONS For personal use only 2000 2,186 2,257 1500 1,445 • Contracts on hand1 have increased by 15% since 30 June 1,257 1000 2019 to 1,445 lots • Reflects gradually improving market conditions across 500
Slide 11: Market Volumes and Outlook
MARKET VOLUMES AND OUTLOOK MARKET VOLUMES EXPECTED TO STABILISE ACROSS MOST MARKETS PEET SUMMARY VICTORIA QUEENSLAND WESTERN AUSTRALIA AUSTRALIAN CAPITAL SOUTH AUSTRALIA For personal use only FY19 FY19 FY19 TERRITORY FY19 FY19 • Strong economic growth, with significant Government • Net migration str
Slide 12: Growth and Resilience, Through Cycles
GROWTH AND RESILIENCE, THROUGH CYCLES TRACK RECORD OF GROWING SHAREHOLDER VALUE OVER THE LONG-TERM • A diversified portfolio of property assets captures opportunities across key markets and provides strength through cycles For personal use only • Counter cyclical acquisition strategy has allowed the
Slide 13: New Projects Supporting Growth
NEW PROJECTS SUPPORTING GROWTH PIPELINE OF APPROXIMATELY 49,400 LOTS PROVIDING For personal use only VISIBILITY OF FUTURE EARNINGS FY20 – FY22 NEW PROJECT RELEASE SCHEDULE Up to seven new land projects Project State Segment Commencement of Lots1/Units Project Life and five medium density Sales/Devel
Slide 14: New Projects Supporting Growth
NEW PROJECTS SUPPORTING GROWTH PROJECTS / LOTS DEVELOPING & SELLING For personal use only 60,000 50,000 49,413 lots Projects: 8 Lots: 9,468 NO. OF LOT/UNITS 39,945 lots 40,000 Projects: 12 30,904 lots Lots: 9,041 30,000 20,000 Projects: 28 Lots: 30,904 10,000 30 JUNE 2019 FY20 - FY22 FY23 & BEYOND M
Slide 15: For personal use only
For personal use only MACQUARIE WA FORUM CONFERENCE ǀ 2 DECEMBER 2019 ǀ PAGE 15
Slide 16: Flagstone - QLD
FLAGSTONE - QLD • 1,245 ha master planned community situated in a For personal use only key South East Queensland growth corridor 38 km south west of Brisbane’s CBD • Total yield of more than 12,000 lots with a GDV of more than $3.4 billion - Expected settlement period to FY40 • Flagstone’s city cen
Slide 17: Flagstone - QLD
FLAGSTONE - QLD For personal use only • Sold over 600 residential lots sold since commencement in 2017 • Achieved $30 million in commercial site sales to end users such as Coles, Catholic Education, McDonald’s and various retail, bistro and service industry users • Residential land price range from
Slide 18: Brabham - WA
BRABHAM - WA • 220 hectare landholding, 20 km For personal use only from the Perth CBD, adjacent to the proposed future METRONET Whiteman Park Station • Development Management Agreement with Department of Communities • Total yield of approximately 3,300 dwellings with a GDV of approx. $800 million •
Slide 19: Craigieburn West - VIC
CRAIGIEBURN WEST - VIC • Located in the Craigieburn West Precinct Structure Plan For personal use only • 25 km north of the Melbourne CBD • Approximate yield: 1,200 dwellings • Leverage existing amenity in Peet’s adjacent Aston development − 1,700 dwellings − 12 hectares of waterways and parklands −
Slide 20: Palmview - QLD
PALMVIEW - QLD For personal use only • A 129 ha site located 9 km from Maroochydore CBD on the Sunshine Coast QLD • Total yield of approx. 1,200 dwellings, comprising land, Completed Homes and Medium Density • Expected settlements from FY20 – FY32 • Key strategic location, central to the Sunshine Co
Slide 21: Medium Density
MEDIUM DENSITY • Pipeline comprising of 1,600 townhouses/low For personal use only rise apartments in the major population centres of Melbourne, Brisbane, Adelaide and Perth • 235 units under construction, with an additional 252 units commencing by June 2020 MACQUARIE PRESENTATION ǀ 2 DECEMBER 2019
Slide 22: Tonsley - SA
TONSLEY - SA • 11 hectare site located 9 km south west of Adelaide CBD For personal use only • Launched in January 2018, stage 1 now complete with first residents. • A total yield of more than 800 dwellings with a GDV of $300 million • High density mixed use development in Tonsley Innovation Distric
Slide 23: Strathpine - QLD
STRATHPINE - QLD • A 16ha site located 24 km north of the For personal use only Brisbane CBD • 182 dwellings comprising 106 detached lots and 76 townhouses • Settlements expected in FY20 to FY22 • Amenity includes 6 ha of parks and open space, close proximity to Strathpine regional shopping centre a
Slide 24: Pier Street - WA
PIER STREET - WA Located in Northbridge within 1 km radius of Perth CBD For personal use only • • 27 level building comprising of 186 apartments • Planning approval received June 2019 • Pre-sales expected to commence 1H21 with construction to commence 2H21 • 30% already pre-sold to Dept of Communiti
Slide 25: Outlook
For personal use only OUTLOOK MACQUARIE WA FORUM CONFERENCE ǀ 2 DECEMBER 2019 ǀ PAGE 25
Slide 26: Market Outlook
MARKET OUTLOOK FOCUSED ON POSITIONING FOR AN IMPROVING MARKET THROUGH A CONSERVATIVE APPROACH TO PROJECT DELIVERY AND IDENTIFYING GROWTH OPPORTUNITIES For personal use only • Market conditions remain mixed, however sentiment is gradually improving • Steady employment growth, record low interest rate
Slide 27: Strategic Outlook
STRATEGIC OUTLOOK PORTFOLIO WELL POSITIONED FOR POSITIVE MEDIUM TO LONG TERM GROWTH AND VALUE CREATION For personal use only STRATEGY OUTLOOK • Selective acquisition of projects as cycles, markets and Invest in high quality land in strategic opportunities allow to restock pipeline INVEST locations a
Slide 28: Disclaimer
DISCLAIMER For personal use only 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 sta