Finbar Group Limited · ASX:FRI
Finbar — Shareholder Meeting (October 2021)
66 slides from Finbar's shareholder meeting presentation, Oct 19, 2021
Slide 1: 2021 Annual General Meeting
19 OCTOBER 2021 2021 ANNUAL GENERAL MEETING
Slide 2: Proxy Votes Received
PROXY VOTES RECEIVED Valid proxy forms were received from 164 shareholders representing 180,610,414 shares (66.4% of total issued shares). The proxy results for each resolution will be displayed for each agenda item. 2 2
Slide 3: Resolution 1 – Adoption of Remuneration Report
RESOLUTION 1 – ADOPTION OF REMUNERATION REPORT To consider and, if thought fit to pass the following as a non-binding resolution: “That, for the purposes of section 250R(2) of the Corporations Act and for all other purposes, approval is given for the adoption of the Remuneration Report as contained
Slide 4: Resolution 2 – Re-election of Mr Lee Verios as Director
RESOLUTION 2 – RE-ELECTION OF MR LEE VERIOS AS DIRECTOR To consider and, if thought fit to pass the following as an ordinary resolution: “That, for the purpose of clause 13.2 of the Constitution, ASX Listing Rule 14.4 and for all other purposes, Mr Lee Verios, a Director, retires by rotation, and be
Slide 5: Resolution 3 – Re-election of Mr Terence Peh as Director
RESOLUTION 3 – RE-ELECTION OF MR TERENCE PEH AS DIRECTOR To consider and, if thought fit to pass the following as an ordinary resolution: “That, for the purpose of clause 13.2 of the Constitution, ASX Listing Rule 14.4 and for all other purposes, Mr Terence Peh, a Director, retires by rotation, and
Slide 6: FY21 Results Summary
FY21 RESULTS SUMMARY
Slide 7: Net Profit
NET PROFIT ➢ 25% increase in net profit to $8.86m ➢ 25th consecutive year of profitability 40 35 30 25 20 $m 15 10 5 0 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 -5 7 7
Slide 8: Sources of Income FY21
Sources of Income JUN21 SOURCE OF INCOME – FY21 Sabina 27% 91% Developments REVA 2% Source of Motive 6% Riverena 16% Source of ➢ Core business of property All Earnings Source of Development Income development contributed to 91% of All AllEarnings Income income. Palmyra 17% ➢ Sabina, Palmyra, Riveren
Slide 9: Segment Contributions FY21
SEGMENT CONTRIBUTIONS FY21 Development Finbar to Finbar Rental Property Interest Activity Rent Sales Revaluations Admin Other Profit Income 20.00 18.00 16.00 14.00 12.00 $m 10.00 8.00 6.00 4.00 2.00 0.00 Positive Impact Negative Impact 9
Slide 10: Corporate Administration Cost
CORPORATE ADMINISTRATION COST ➢ Administration costs overhead as percentage of net equity is 3.2%. Net Equity ($m) Administration Costs Admin Costs as % of Net Equity ➢ Slight increase due to consolidation $250 5% of Finbar to Rent and Finbar Sales divisions into total admin costs. 4% $200 ➢ Efficie
Slide 11: Cash
CASH $80 $70 $60 $50 $m $40 ➢ Strong year end cash position of $52.6m. $30 ➢ Funding major construction works in progress plus commitments to $20 commence Aurora & The Point in FY22. $10 ➢ No debt on residual stock with settlement cashflow to continue to $0 support reinvestment. FY07 FY08 FY09 FY10
Slide 12: Earnings Per Share & Dividends
Earnings Per Share & Dividends DIVIDEND 18 16 14 12 Cents per share 10 Retained ➢ Fully franked dividend of $0.04 per 8 Final share attributable to the financial year 6 Interim 4 2 0 12
Slide 13: Project Debt
Current Project Debt & Coverage PROJECT DEBT Debt & Pre-sales Coverage $450 ➢ $9.2m facility for Riverena repaid in FY21 $400 $350 FY21 Subsequent ➢ $21.6m line for Dianella repaid subsequent to balance date $300 Event $250 ➢ Currently no development related debt $200 $150 ➢ First drawdowns expected
Slide 14: Investment Property Update
INVESTMENT PROPERTY UPDATE
Slide 15: Investment Properties
Investment Properties INVESTMENT PROPERTY FAIRLANES PELAGO 181 Adelaide Terrace East Perth 23 & 26 Sharpe Avenue Karratha ➢ 7,582 sqm office building ➢ 99 apartments & 20 commercial lots ➢ Leased to AECOM, Ventia, APP, Finbar’s corporate ➢ Predominantly leased to office, smaller office and corporate
Slide 16: Investment Property – Occupancy Levels
Investment Property Leasing INVESTMENT PROPERTY – OCCUPANCY LEVELS 100 7,000 ➢ Fairlanes 97% leased. 6,000 80 ➢ Pelago Commercial 70% leased. Recent sale of one commercial. 5,000 Commercial Sqm NLA Residential Apartments ➢ Pelago Residential 98% leased. Recent sale of 60 two residential lots. 4,000
Slide 17: Investment Property – Book Value & Debt
Investment Property Values & Gearing Profile INVESTMENT PROPERTY – BOOK VALUE & DEBT $120 ➢ Loan to Value Ratio across investment property is 42% Equity $100 ➢ Facilities with Australian Major Debt Banks (CBA & NAB) $80 ➢ Gradual sell down of Karratha $m intended where development $60 margin over ca
Slide 18: Division Update
DIVISION UPDATE
Slide 19: Finbar to Rent – Properties Under Management
FINBAR TO RENT – PROPERTIES UNDER MANAGEMENT ➢ Finbar to Rent has 348 properties under 400 management 350 ➢ No rent role acquisitions, organic growth only from marketing to Finbar customers only 300 ➢ Property Management for only Finbar 250 developed properties 237 242 249 220 223 226 229 200 206 21
Slide 20: Finbar Sales Performance
FINBAR SALES PERFORMANCE ➢ Three person internal sales team Sabina Civic Heart Aurora ➢ Finbar Sales has achieved majority of Other Agents, 4, 11% sales across all appointed projects ➢ Enables greater sales office exposure Other Other Agents, Agents, 37, 43, 38% times 45% FS, 45, 55% ➢ $2.37m in com
Slide 21: Development Sales Activity Update
DEVELOPMENT SALES ACTIVITY UPDATE
Slide 22: Total Number of Sales per Month
TOTAL NUMBER OF SALES PER MONTH 90 30 sales - October month to date 80 77 74 70 60 57 COVID-19 declared a pandemic 51 49 50 47 45 45 44 45 42 40 40 38 37 37 38 38 33 34 32 31 32 32 32 28 28 28 29 29 29 29 29 29 30 27 27 27 25 26 26 26 23 23 24 22 22 22 22 21 19 20 20 20 19 20 19 20 20 18 18 15 14 16
Slide 23: Average Sales per Day
AVERAGE SALES PER DAY (FINANCIAL YEAR) 1.8 700 1.6 1.6 1.5 600 1.4 1.3 1.2 1.2 500 1.2 1.1 1.1 0.9 400 1 0.9 0.8 0.8 0.7 0.7 Year to Date 0.8 0.7 0.6 300 0.6 0.6 0.5 0.6 0.5 0.5 0.4 200 0.4 0.3 0.1 0.1 100 0.2 0.1 0.0 1 15 24 178 54 50 100 230 245 309 591 305 211 138 321 184 338 547 403 430 266 235
Slide 24: Average Sales Value per Unit
AVERAGE SALES VALUE (PER UNIT) - FINANCIAL YEAR $800 700 Thousands $730 $706 $678 $686 $700 $650 $629 600 $617 $626 $611 $609 $598 $577 $600 $557 $559 $549 $519 $526 500 $500 $462 400 $389 $365 $372 $400 $330 $333 $319 Year to Date $299 300 $300 $255 $232 200 $200 100 $100 24 1 15 178 54 50 100 230
Slide 25: Completed Stock Sell Down
COMPLETED STOCK SELL DOWN COMPLETION COMPLETION $200 COMPLETION Millions $174 $180 $165 $160 $155 $148 $146 $149 $160 $140 $139 COMPLETION $140 $127 $108 $120 $98 $93 $91 $95 $100 $81 $68 $80 $59 $64 $59 $54 $60 $39 Month to Date $40 $20 $- 25
Slide 26: Total Off-the-Plan Presales Value
TOTAL OFF-THE-PLAN PRESALES VALUE $600 Millions SUBI STRAND & TOCCATA ARBOR NORTH $500 NORWOOD UNISON ON TENTH AURELIA & AIRE MOTIVE CONCERTO REVA $400 LINQ VUE PALMYRA $300 DIANELLA SABINA ONE KENNEDY $212m $200 IN ACCRUED PRE-SALES RIVERENA $100 $0 $m PROJECT COMPLETION & SETTLEMENTS 26
Slide 27: Investor Sales v Owner Occupier per Calendar Quarter
INVESTOR SALES V OWNER OCCUPIER PER CALENDAR QTR 160 90.0% 140 80.0% 72% 69% 66% 70.0% 120 60.0% 100 50.0% 80 34.0% 40.0% 30.5% 60 27.9% 30.0% 40 20.0% 20 10.0% 0 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 2017 20
Slide 28: All Developments Website Enquiries
ALL DEVELOPMENTS YEAR 2017 TOTAL 3774 AVG ENQUIRY PER DAY 10.34 WEBSITE ENQUIRIES SINCE 2017 2021 AVERAGING 14.20 ENQUIRIES A DAY 2018 4843 13.27 2019 2500 6.85 2020 3959 10.85 2021 4118 14.20 900 803 800 700 656 647 618 589 600 486 508 495 491 473 485 500 444 450 435 418 407 423 376 393 404 400 352
Slide 29: Loyalty Club
LOYALTY CLUB NEW VS REPEAT BUYERS NEW VS REPEAT BUYERS 100% 99% 96% 94% 93% 96% 80% 87% 88% 88% 87% 90% 80% 70% 60% 50% 40% 30% 20% 10% 1% 4% 6% 7% 4% 20% 13% 12% 12% 13% 0% FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Repeat Buyer New Buyer 29
Slide 30: Yearly FIRB Sales
YEARLY FIRB SALES FIRB SALES PER YEAR 100 90 80 70 60 50 40 30 20 10 34 54 34 89 77 44 66 83 20 29 14 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Foreign Buyer Surcharge Tax introduced to WA In Jan 19 has slowed overseas sales significantly 30
Slide 31: Development Activity Update
Development Activity Update PROJECT UPDATE Effective as at 18/10/2021 31
Slide 32: Completed Projects
COMPLETED PROJECTS Effective as at 18/10/2021 32 32
Slide 33: Motive
MOTIVE Concerto 172 RAILWAY PARADE, WEST LEEDERVILLE Project: Motive consists of 143 one and two bedroom apartments. ▪ Status: Completed December 2016 ▪ Ownership: 50% JV with landowner ▪ Value: $72.8 million ▪ Completed: FY17 ▪ Average price: $509,224 ▪ Sales: No. Units $ Value SETTLED, SETTLED, $7
Slide 34: Concerto
CONCERTO Concerto 189 ADELAIDE TERRACE, EAST PERTH Project: Concerto consists of 226 studio, one, two and three bedroom apartments plus 1 commercial unit. ▪ Status: Completed May 2017 ▪ Ownership: 50% JV with landowner ▪ Value: $186.7 million ▪ Completed: FY17 ▪ Average price: $822,513 ▪ Sales: No.
Slide 35: Palmyra East
PALMYRA EASTConcerto 49 MCGREGOR ROAD, PALMYRA Project: Palmyra East consists of 128 one, two and three bedroom apartments. ▪ Status: Completed October 2019 ▪ Ownership: 50% JV with landowner ▪ Value: $49.8 million ▪ Completed: FY19 ▪ Average price: $390,432 ▪ Sales: No. Units UNDER $ Value UNDER CO
Slide 36: Aire West Perth
Concerto AIRE WEST PERTH 659 MURRAY STREET, WEST PERTH Project: Aire West Perth consists of 178 one, two and three bedroom apartments plus 64 serviced apartments as well as 2 ground floor commercial units. ▪ Status: Completed May 2018 ▪ Ownership: 50% JV through SPV ▪ Value: ~$103.5 million ▪ Comple
Slide 37: Aurelia
AURELIA Concerto 1 HARPER TERRACE, SOUTH PERTH Project: Aurelia consists of 118 one, two and three bedroom apartments plus 6 commercial units and 14 office spaces. ▪ Status: Completed May 2018 ▪ Ownership: 50% JV with landowner ▪ Value: ~$129.8 million ▪ Completed: FY18 ▪ Average price: $954,817 ▪ S
Slide 38: Reva South Perth
Concerto REVA SOUTH PERTH 5 HARPER TERRACE, SOUTH PERTH Project: Reva consists of 41 luxury apartments plus 18 commercial lots of ground floor retail and level one office space. ▪ Status: Completed January 2019 ▪ Ownership: Wholly owned through subsidiary ▪ Value: ~$48.3 million ▪ Completed: FY19 ▪
Slide 39: Vue Tower
VUE TOWER Concerto 63 ADELAIDE TERRACE, EAST PERTH Project: Vue Tower consists of 245 one, two and 3 bedroom apartments plus 3 commercial units and 2 office units. ▪ Status: Completed June 2019 ▪ Ownership: 50% JV with landowner ▪ Value: ~$143.7 million ▪ Completed: FY19 ▪ Average price: $570,419 ▪
Slide 40: Sabina
SABINA Concerto 908 CANNING HIGHWAY, APPLECROSS Project: Sabina is the first stage of the Canning Highway development and consists of 164 one, two, three bedroom apartments, and 3 ground floor commercial lots. ▪ Status: Completed April 2020 ▪ Ownership: 50% JV with landowner ▪ Value: ~$117.5 million
Slide 41: One Kennedy
ONE KENNEDY Concerto 1 KENNEDY STREET, MAYLANDS Project: One Kennedy consists of 120 one, two and three bedroom apartments plus 3 commercial lots. ▪ Status: Completed June 2020 ▪ Ownership: 50% JV with landowner ▪ Value: ~$53.5 million ▪ Completed: FY20 ▪ Average price: $435,308 ▪ Sales: No. Units U
Slide 42: Riverena
RIVERENA Concerto 5 ROWE AVENUE, RIVERVALE Project: Riverena consists of 125 one, two and three bedroom apartments. ▪ Status: Completed December 2020 ▪ Ownership: 50% JV through SPV ▪ Value: ~$52.5 million ▪ Completed: FY21 ▪ Average price: $419,979 ▪ Sales: No. Units UNDER $ Value UNDER FOR FOR CON
Slide 43: Dianella Apartments
Concerto DIANELLA APARTMENTS 36 CHESTER AVENUE, DIANELLA Project: Dianella Apartments consists of 128 one, two and three bedroom apartments. ▪ Status: Completed August 2021 ▪ Ownership: Wholly owned through subsidiary ▪ Value: ~$62.8 million ▪ Completed: FY22 ▪ Average price: $491,088 ▪ Sales: No. U
Slide 44: Projects Under Construction
Development Activity Update PROJECTS UNDER CONSTRUCTION Effective as at 18/10/2021 44
Slide 45: AT238
AT238 Concerto 238 ADELAIDE TERRACE, PERTH Project: AT238 will consist of 119 one, two and three bedroom apartments plus 2 ground floor commercial on 1,697 Sqm land over 31 levels. ▪ Status: Under Construction ▪ Ownership: 50% JV through SPV ▪ Value: ~$90.8 million ▪ Est. Completion: FY23 ▪ Average
Slide 46: AWNUAARRS
AWNUAARRS
Slide 47: Civic Heart
CIVIC HEART Concerto 1 MENDS STREET, SOUTH PERTH Project: Civic Heart will consist of 309 one, two, three bed apartments plus 2,750sqm of commercial space. ▪ Status: Under Construction ▪ Ownership: 52.5% JV with landowner ▪ Value: ~$404.4 million ▪ Est. Completion: FY23/FY24 ▪ Average price: $967,44
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Slide 50: Projects Being Marketed Off-the-Plan
PROJECTS BEING MARKETED OFF-THE-PLAN Effective as at 18/10/2021 50 50
Slide 51: Aurora
AURORA Concerto 238 ADELAIDE TERRACE, PERTH Project: Aurora will consist of 118 one, two, three bed apartments plus 3 ground floor commercial. ▪ Status: Pre-Sales ▪ Ownership: 50% JV with landowner ▪ Value: ~$134.5 million ▪ Est. Completion: FY24 ▪ Average price: $741,430 ▪ Sales: UNDER No. Units UN
Slide 52: The Point
THE POINT Concerto 31 ROWE AVENUE, RIVERVALE Project: The Point will consist of 167 one, two and three bedroom apartments plus 9 ground floor commercial units. ▪ Status: Pre-Sales ▪ Ownership: 65% JV with landowner (increased from 50%) ▪ Value: ~$97.1 million ▪ Est. Completion: TBC ▪ Average price:
Slide 53: Development Approval Received
DEVELOPMENT APPROVAL RECEIVED Effective as at 18/10/2021 53 53
Slide 54: Canning Highway Stage 3
Concerto CANNING HIGHWAY STAGE 3 912 CANNING HIGHWAY, APPLECROSS Project: Stage 3 will consist of 153 one, two, three bed apartments, and 2 ground floor STAGE 3 commercial lots. ▪ Status: Development Approval Received ▪ Ownership: 50% JV with landowner ▪ Value: ~$112 million ▪ Est. Completion: TBC ▪
Slide 55: Palmyra West
PALMYRA WESTConcerto 912 CANNING HIGHWAY, APPLECROSS Project: Palmyra West will consist of 130 one, two and three bedroom apartments. ▪ Status: Development Approval Received ▪ Ownership: 50% JV with landowner ▪ Value: ~$62 million ▪ Est. Completion: TBC ▪ Sales: No. Units $ Value FUTURE FUTURE RELEA
Slide 56: 239 Great Eastern Highway
Concerto 239 GREAT EASTERN HIGHWAY 239 GREAT EASTERN HIGHWAY, BELMONT Project: 239 Great Eastern Highway has an approved DA for 194 one and two bedroom apartments plus 154sqm of ground floor commercial ▪ Status: Development Approval Received ▪ Ownership: Wholly owned through subsidiary ▪ Value: TBC
Slide 57: Lot 888
LOT 888 Concerto LOT 888 ROWE AVENUE, RIVERVALE Project: Lot 888 comprises of 2370 square meters of land within The Springs, Rivervale Precinct. ▪ Status: Development approval received for 6,459m2 NLA commercial office building ▪ Ownership: 50% JV through SPV ▪ Value: TBC ▪ Est. Completion: TBC ▪ Sa
Slide 58: In Planning, Approval Process, or Design
IN PLANNING, APPROVAL PROCESS, OR DESIGN Effective as at 18/10/2021 58 58
Slide 59: Garden Towers
Concerto GARDEN TOWERS LOT 101 HAY STREET, EAST PERTH Project: Garden Towers East Perth (formerly internally referred to as ‘Chemlabs’) will consist of approximately 331 one, two, three bed apartments, and 13 commercial lots. ▪ Status: Development Approval Submission ▪ Ownership: 50% JV through SPV
Slide 60: Lot 1000
LOT 1000 Concerto 32 RIVERSDALE ROAD, RIVERVALE Project: Lot 1000 comprises 4,069 square metres of absolute waterfront land with expansive views of the Swan River, Stadium Precinct, and Perth CBD. Will consist of approximately 143 residential apartments. ▪ Status: Planning and Design ▪ Ownership: 50
Slide 61: 2 Homelea Court
Concerto 2 HOMELEA COURT CNR ROWE AVENUE AND HOMELEA COURT, RIVERVALE Project: 2 Homelea Court will consist of approximately 185 apartments within a 10 level building. The site is comprised of four vacant blocks totaling 3,770 square meters. ▪ Status: Planning and Design ▪ Ownership: Wholly owned th
Slide 62: Other
OTHER Effective as at 18/10/2021 62 62
Slide 63: ABC Building (Harmony)
Concerto ABC BUILDING (HARMONY) 187 ADELAIDE TERRACE, EAST PERTH Project: Harmony comprises the former ABC Radio Studios heritage building with a GFA of 3,711sqm over 3 levels. ▪ Status: Planning and Design ▪ Ownership: Wholly owned through subsidiary ▪ Value: TBC ▪ Sales: Property being offered for
Slide 64: Current Pipeline
$1.39b residual pipeline CURRENT PIPELINE $495m under construction 450 400 350 $231m construction starts FY22 300 250 200 150 100 50 0 Remaining Stock Value $m Sold Stock Value $m 64 64
Slide 65: Developed to Date
DEVELOPED TO DATE CUMULATIVE UNITS DEVELOPED 1985 10000 8640 9000 8000 6655 7000 6000 5000 4000 3000 2000 1000 0 96 97 98 99 00 01 03 04 05 07 08 09 10 11 12 13 14 15 16 17 18 19 20 22 65 65
Slide 66: Important Notice
Important Notice Some of the information contained in this presentation may contain forward-looking revenue, timeline, and general statements that are subject to various risks, uncertainties, and changes. Forward-looking statements include those containing such words as ‘estimate’, ‘should’, ‘may’,