Slide 1: Viva Energy REIT HY2018 Results
VVR HY2018 RESULTS Viva Energy REIT HY2018 Results 23 August 2018
Slide 2: Disclaimer
Disclaimer: This presentation has been prepared by Viva securities of VVR or any other financial product. the information reflects VVR’s intent, belief or achievements expressed or implied by these Energy REIT (“VVR” or “Viva Energy REIT”) The distribution of this presentation outside expectations a
Slide 3: Agenda
AGENDA Highlights 4 Financial Results 9 Capital Management 13 Acquisitions & Portfolio Update 15 Strategy & Outlook 22 Viva Energy Australia 25 Questions 29 Appendix 30
Slide 4: Highlights
Highlights MARGARET KENNEDY Managing Director VER Manager Pty Limited 4
Slide 5: Key HY2018 Highlights
KEY HY2018 HIGHLIGHTS VVR HY2018 RESULTS Key HY2018 Highlights CAPITAL PORTFOLIO & RESULTS MANAGEMENT ACQUISITIONS 5
Slide 6: HY2018 Financial Highlights
KEY HY2018 HIGHLIGHTS VVR HY2018 RESULTS HY2018 Financial Highlights HALF YEAR ENDED 30 JUNE 2018 $59.6 million 6.99 CPS NTA$2.20 per 21bps MER 32.5% statutory Distributable security 2 gearing profit Earnings 1 ratio +2.8% HY2017 6.2% greater than HY2017 Annualised total Below target range managemen
Slide 7: Portfolio & Acquisitions Overview
KEY HY2018 HIGHLIGHTS VVR HY2018 RESULTS Portfolio & Acquisitions Overview AT 30 JUNE 2018 $2.33 billion 1.88 million m 2 76% metro WALE of 100% portfolio of land area properties 1 13.2 years occupancy Portfolio of 442 high-quality Geographically diversified 24% regional properties1 With 3% per annu
Slide 8: Capital Management Highlights
KEY HY2018 HIGHLIGHTS VVR HY2018 RESULTS Capital Management Highlights AT 30 JUNE 2018 32.5% Progressed Lengthened Weighted debt Restructured gearing capital tenor and facility swap book ratio management diversified maturity of 4.3 program sources of years Below target range capital Increased from 2
Slide 9: Financial Results
Financial Results GUY FARRANDS Chief Financial Officer VER Manager Pty Limited 9
Slide 10: Statutory Financial Performance
FINANCIAL RESULTS VVR HY2018 RESULTS Statutory Financial Performance Half year Half year % Change Statutory Profit and Loss 30 June 2018 30 June 2017 HY18 vs HY17 $ million $ million Income Rental income from investment properties 67.4 63.2 Revenue from investment properties – straight-line 14.1 15.
Slide 11: Distributable Earnings
FINANCIAL RESULTS VVR HY2018 RESULTS Distributable Earnings Half year Half year % Change Distributable Earnings 30 June 2018 30 June 2017 HY18 vs HY17 $ million1 $ million1 Statutory net profit 59.6 43.1 Add back: amortisation of debt establishment costs 3.7 0.8 Straight-line lease adjustments (14.1
Slide 12: Financial Position
FINANCIAL RESULTS VVR HY2018 RESULTS Financial Position As at As at As at Balance Sheet 30 June 2018 30 June 2017 31 December 2017 $ million1 $ million1 $ million1 Assets Cash and cash equivalents 33.8 119.0 43.6 Prepayments and property deposits 1.4 5.2 8.2 Fair value of interest rate swaps 2.8 6.4
Slide 13: Capital Management
CAPITAL MANAGEMENT VVR HY2018 RESULTS Capital Management Well positioned for growth • Weighted average cost of debt is 3.84% 30 June 2018 31 December 2017 $ million1 $ million • Gearing 32.5% versus target range 35% to 45% Facility limit2 956.7 896.7 • Potential to achieve accretion through addition
Slide 14: Capital Management: Delivering on the capital management strategy
CAPITAL MANAGEMENT VVR HY2018 RESULTS Capital Management Delivering on the capital management strategy • Debt extended, increased and restructured Debt Facilities Expiry Profile ($m): as at 30 June 2018 • Maintained unsecured structure while improving 400 terms - Margin step-up at 35% LVR removed 30
Slide 15: Acquisitions & Portfolio Update
Acquisitions & Portfolio Update MARGARET KENNEDY Managing Director VER Manager Pty Limited 15
Slide 16: Acquisition Strategy
ACQUISITIONS & PORTFOLIO UPDATE VVR HY2018 RESULTS Acquisition VVR will continue to consider acquisition and Strategy development opportunities consistent with the following investment criteria: 1 Investment is high quality and strategically located; 2 Portfolio remains geographically diversified; 3
Slide 17: Portfolio Overview
ACQUISITIONS & PORTFOLIO UPDATE VVR HY2018 RESULTS Portfolio Overview PORTFOLIO AT 30 JUNE 2018 Properties Value Average Value Average size WACR WALE $m $m m2 % years Metropolitan 314 1,782.5 5.7 3,510 5.5% 13.5 Regional 128 544.8 4.3 6,014 6.8% 12.6 Total 442 2,327.3 5.3 4,236 5.8% 13.2 • 4 sites s
Slide 18: Portfolio - 1.88 million m2 of property geographically diversified
ACQUISITIONS & PORTFOLIO UPDATE VVR HY2018 RESULTS Portfolio - 1.88 million m2 of property geographically diversified Profile across all Australian states and territories AT 30 JUNE 2018 - 83% of properties by value located in Australia’s more populous Eastern seaboard states - 77% of properties by
Slide 19: Population Map Study – Melbourne
ACQUISITIONS & PORTFOLIO UPDATE VVR HY2018 RESULTS Population Map Study – Melbourne National distribution platform aligned with population density • 91% of Melbourne’s metropolitan population1 is located within a 5km radius of VVR’s property coverage2 • 81% of VVR’s Victoria portfolio by number is l
Slide 20: Population Map Study – Sydney
ACQUISITIONS & PORTFOLIO UPDATE VVR HY2018 RESULTS Population Map Study – Sydney National distribution platform aligned with population density • 93% of Sydney’s metropolitan population1 is located within a 5km radius of VVR’s property coverage2 • 65% of VVR’s New South Wales portfolio by number is
Slide 21: Convenience Retail Market Update
ACQUISITIONS & PORTFOLIO UPDATE VVR HY2018 RESULTS Convenience Retail - The $8.4 billion Petrol and Convenience industry (in- Market Update store sales only) grew by 1.0% in 2017 and industry dollar growth has oscillated between 3.4% and 4.5% per annum for the 5 years to 20171 - New South Wales and
Slide 22: Strategy & Outlook
Strategy & Outlook MARGARET KENNEDY Managing Director VER Manager Pty Limited 22
Slide 23: Strategy
STRATEGY & OUTLOOK VVR HY2018 RESULTS Strategy Market-leading national service station and convenience retail distribution platform Irreplicable high- National 100% occupancy, 3% per annum rent Portfolio quality strategically distribution predominantly long- increases and underpinned by located serv
Slide 24: Outlook
STRATEGY & OUTLOOK VVR HY2018 RESULTS Outlook FY2018 Distributable Earnings guidance remains unchanged Optimise core Ongoing Continue to focus FY2018 Distributable Target payout ratio business and opportunities for on the capital Earnings guidance 100% of maintain low acquisition and management of 1
Slide 25: Viva Energy Australia
Viva Energy Australia MARGARET KENNEDY Managing Director VER Manager Pty Limited All information has been extracted from the Viva Energy Group Limited Prospectus dated 20 June 2018 25
Slide 26: Viva Energy Australia Snapshot
VIVA ENERGY AUSTRALIA VVR HY2018 RESULTS Viva Energy Australia Snapshot A leading integrated downstream petroleum company in Australia 24%1 of the Australian downstream petroleum market 1,165 service station sites nationwide in Viva Energy’s network 44 fuel import terminals and depots2 nationally to
Slide 27: Viva Energy Australia Brand Recognition
VIVA ENERGY AUSTRALIA VVR HY2018 RESULTS Viva Energy Australia Brand Recognition Network scale and strategic support earnings stability Strategically Located Network of 1,165 Service Stations1 Viva Energy Service Station Distribution by State TAS NT Northern SA 2% 2% Territory 7% WA 12% NSW 19 33% Q
Slide 28: Viva Energy Australia Model
VIVA ENERGY AUSTRALIA VVR HY2018 RESULTS Viva Energy Australia Model Retail Alliance with One of Australia’s Largest Supermarket Operators1 Collaboration on network development Coles owned by 1 Wesfarmers2, and operates Pays fuel purchases + approximately 2,500 stores3 royalties (share of non-fuel m
Slide 29: Questions
Questions 29
Slide 30: Glossary
Glossary 30
Slide 31: Glossary
GLOSSARY VVR HY2018 RESULTS Glossary The contractual alliance between Viva Energy Australia and Coles Express (and their associated entities) including the Alliance Alliance Agreement and Site Agreements as outlined in the PDS CAGR Compound average growth rate Cap Rate Capitalisation rate CPS Cents
Slide 32: Glossary
GLOSSARY VVR HY2018 RESULTS Glossary Interest Coverage Earnings before interest, tax, depreciation and amortisation (excluding any asset revaluations, mark-to-market movements Ratio or ICR and transaction costs) divided by net interest expense IPO Initial Public Offering Liberty Oil Liberty Oil Hold
Slide 33: Appendix
Appendix 33
Slide 34: Acquisitions Since IPO
APPENDIX VVR HY2018 RESULTS Acquisitions Since IPO TOTAL ACQUISITION SUMMARY (ANNOUNCED) FROM INITIAL LISTING TO 23 AUGUST 2018 Property State Region Purchase Capitalisation Major Tenant Rent Reveiws Lease price ($m) rate (%)2 Annerley QLD Metro $10.8 5.3% Viva Energy Australia Fixed 3% Triple Net H