Waypoint Reit Ltd. · ASX:WPR
Waypoint Reit — Investor Presentation (August 2017)
37 slides from Waypoint Reit's investor presentation, Aug 17, 2017
Slide 1: Viva Energy REIT HY2017 Results
Viva Energy REIT HY2017 Results 30 June 2017 17 August 2017
Slide 2: Disclaimer
Disclaimer: This presentation has been prepared by Viva Energy REIT This presentation has been prepared without taking into account Except to the extent liability under any applicable laws (“VVR” or “Viva Energy REIT”) which is a stapled entity the investment objectives, financial situation or parti
Slide 3: Contents
Contents Highlights 4 Half Year Financial Results 11 Portfolio & Acquisition Update 16 Industry Update 22 Viva Energy Australia Update 26 FY2017 Outlook 31 Questions 35 Appendix 36 3
Slide 4: Highlights
Highlights Shell Coles Express West Ryde, NSW Margaret Kennedy Managing Director VER Manager Pty Ltd 4
Slide 5: Highlights
Highlights Upgraded FY2017 Continued Growth Proactive Capital Distributable Through Management Plan Earnings Acquisitions Implemented Guidance to 13.2 CPS Shell Coles Express Balmoral, QLD 5
Slide 6: Financial Highlights
Financial Highlights Half year ended 30 June 2017 Statutory Net Profit $43.1m Distributable Earnings $47.0m 6.80 CPS1 +5.8% PDS forecast2 Net Tangible Assets (NTA) $2.073 per stapled security Shell Coles Express Laverton North, VIC 1. Distributable Earnings divided by the weighted average number of
Slide 7: Portfolio Overview
Portfolio Overview As at 30 June 2017 $2.2bn 84% 77% $2.22 billion portfolio of Geographically diversified across 77% of properties situated in Predominantly long term Triple 4371 high quality service all Australian states and metropolitan locations Net leases2 to Viva Energy station properties terr
Slide 8: Demonstrated Acquisition Track Record
Demonstrated Acquisition Track Record Since inception to 30 June 2017 Number of properties 4 8 10 22 45.0 160.3 Purchase price1 89.1 26.2 Announced Feb-17 Announced Jun-17 Properties currently in due diligence 2 Potential Total 88% of Demonstrated acquisitions to $135 million All properties ability
Slide 9: Acquisition Highlights
Acquisition Highlights Total contracted acquisitions since inception to 30 June 2017 Total contracted 12 properties, $9.6m average WACR2 5.9% WALE 9.9 years acquisitions 88% situated in purchase price1 $115.31 million metropolitan areas 1. Total purchase price excluding transaction costs 2. Weighted
Slide 10: Strategy
Strategy Market Leading National Retail Fuel & Convenience Distribution Platform Irreplicable Strong growth 100% Organic Inorganic Portfolio high quality in Coles occupancy, earnings earnings underpinned strategically convenience predominantly growth growth by quality real located retail store sales
Slide 11: Financial Results
Financial Results Shell Coles Express Coorparoo, QLD Guy Farrands Chief Financial Officer VER Manager Pty Ltd 11
Slide 12: Statutory Financial Performance
Statutory Financial Performance HY2017 Actual HY2017 PDS Statutory Profit and Loss $m Forecast1 REVENUE Gross property income 63.2 61.8 Straight lining of rental income 15.2 15.2 Interest income 0.3 0.5 Total revenue 78.7 77.5 EXPENSES Interest expense (14.9) (15.3) Board and Management expenses (2.
Slide 13: Distributable Earnings
Distributable Earnings HY2017 Actual HY2017 PDS Distributable Earnings $m Forecast1 Gross property income 63.2 61.8 Straight lining of rental income 15.2 15.2 Interest income 0.3 0.5 Total revenue 78.7 77.5 Interest expense (14.9) (15.3) Board and Management expenses (2.4) (3.4) Total operating expe
Slide 14: Financial Position
Financial Position Balance Sheet $m 30 June 2017 Cash 1191 Investment properties 2,1452 Fair value of interest rate swaps 6 Prepayments and deposits 5 Total Assets 2,275 Accounts payable and accruals 24 Borrowings 742 Total Liabilities 766 Net Assets 1,509 Net Tangible Assets Per Security $2.073 • D
Slide 15: Capital Management
Capital Management As at 30 June 2017 Gearing at 33.8% and FY17 ICR expected to be greater than 4.1X Target gearing range between 35% to 45% Drawn debt has been 98.7% hedged for a weighted average 3.1 years at an average interest rate of 3.72% Unsecured borrowings with no priority security Additiona
Slide 16: Portfolio & Acquisition Update
Portfolio & Acquisition Update Shell Coles Express Ultimo, NSW Margaret Kennedy 16
Slide 17: Portfolio Overview
Portfolio Overview Average Properties Book Value Property WACR2 WALE ($m) ($m) R2 (years) Metropolitan 313 1,709 5.5 5.6% 14.4 Regional 124 511 4.1 6.8% 13.6 Total 4371 2,2201 5.1 5.9% 14.2 Shell Coles Express Laverton North, VIC 1. Includes six properties contracted to be acquired by Viva Energy RE
Slide 18: Portfolio Profile
Portfolio Profile Portfolio geographic diversification • 84% weighted towards Australia’s more populous Eastern seaboard states • 77% weighted to metropolitan properties 1% - typically higher value and higher volume 21% properties that attract tighter cap rates - located on major roads with high tra
Slide 19: Portfolio Lease Profile
Portfolio Lease Profile • 100% occupancy • 3% per annum fixed rental growth commencing August 20171 Portfolio WALE – by income 25.0% 22.4% 20.0% 17.0% 14.9% % of income 15.0% 10.9% 10.0% 8.2% 7.2% 7.1% 5.7% 4.9% 5.0% 0.4% 0.4% 0.7% 0.3% 0.0% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 202
Slide 20: Acquisition Summary
Acquisition Summary As at 30 June 2017 Contracted to acquire 12 additional properties for total purchase price of $115.31 million $9.61 million average purchase price reflecting higher sales volume per property WACR2 of 5.9% WALE of 9.9 years 88% of acquired properties situated in metropolitan areas
Slide 21: Portfolio Impact of Acquisitions
Portfolio Impact of Acquisitions Initial Total Total Shell Coles Express Langwarrin, VIC Portfolio metrics Portfolio Acquisitions Portfolio Portfolio ($m) 2,1051 1152 2,2203 Number of 425 12 4373 properties Occupancy 100% 100% 100% WALE 14.4 9.9 14.2 WACR 5.9% 5.9% 5.9% 1. Independent valuation as a
Slide 22: Industry Update
Industry Update Shell Coles Express Rouse Hill, NSW Margaret Kennedy 22
Slide 23: Industry Participants
Industry Participants ACCC flags preliminary concerns Convenience Retail Caltex Australia regarding BP’s REIT (ASX: CRR) Ltd (ASX:CTX) proposed acquisition of admitted to completes acquisition Woolworths fuel Official List of ASX of Milemaker business Shell Coles Express Balmoral, QLD 23
Slide 24: Retail Fuel & Convenience Property Sales
Retail Fuel & Convenience Property Sales 2016 & 2017 year to date 9.0% • 2016 sales • 2017 sales 8.0% Liquid 7.0% CRR IPO Portfolio market VVR Portfolio 6.0% Initial Yield 5.0% Yields 4.0% reflective of quality 3.0% 2.0% 0.00 5.00 10.00 15.00 20.00 Remaining Lease Term in Years Source: Jones Lang La
Slide 25: Electric Vehicles in Australia
Electric Vehicles in Australia There is considerable variance in forecast uptake of electric vehicles (EV) in Australia Purchase price of EVs are not currently subsidised in Australia Over 1.18 million sales of new motor vehicles in Australia to year ended 31 December 20161 - 68 full EV and 701 plug
Slide 26: Viva Energy Australia Update
Viva Energy Australia Update Shell Coles Express Bunker Hill, VIC Margaret Kennedy This section includes information regarding Viva Energy Australia Pty Ltd and its affiliates and their collective operations (Viva Energy Australia). The information is provided for background purposes only, and neith
Slide 27: Snapshot of Viva Energy Australia
Snapshot of Viva Energy Australia Fully integrated player with key positions in all major market segments Trading Refining & supply Distribution Marketing Retail Alliance Viva Energy Australia’s Retail Dealer Geelong Refinery Owned Wholesale Other domestic Aviation1 refineries Viva Energy Australia’
Slide 28: Viva Energy Australia
Viva Energy Australia Viva Energy Australia is the exclusive supplier of fuel and other oil products in Australia under the Shell brand1 Viva Energy Australia manufactures, supplies and markets fuel in Australia through a market leading retail fuel and convenience platform comprised of 962 primarily
Slide 29: Shell Retail Brand Refresh Program
Shell Retail Brand Refresh Program Viva Energy Australia is committed to maintaining the highest standard of property facilities and are currently implementing the Shell Retail Brand Refresh program The program brings each property into compliance with Shell’s global retail visual guidelines which a
Slide 30: Coles Express
Coles Express Alliance properties are operated by Coles Express1 under the terms of the Alliance Agreement between Viva Energy Australia and Coles Express1 which is due to expire in 2024, either party may unilaterally extend the term by five years to 2029 Coles Express1 is the retail convenience off
Slide 31: FY2017 Outlook
FY2017 Outlook Coles Express Milton, QLD Margaret Kennedy 31
Slide 32: Outlook and Forecast
Outlook and Forecast FY2017 Optimise Growth Capital Distributable Core Business Opportunities Management Earnings 13.2 CPS Viva Energy REITs Viva Energy REIT will Review of debt capital Viva Energy REIT’s investment objective is continue to consider structure is ongoing, FY2017 Forecast to own a por
Slide 33: Glossary
Glossary The contractual alliance between Viva Energy Australia and Coles Express (and their associated Alliance entities) including the Alliance Agreement and Site Agreements as outlined in the PDS CAGR Compound average growth rate Cap rate Capitalisation rate CPS Cents per security This is a non-I
Slide 34: Glossary
Glossary HY Viva Energy REIT half year, being half year end 30 June Initial Portfolio Portfolio of 425 properties as detailed in the PDS Earnings before interest, tax, depreciation and amortisation (excluding any asset revaluations, mark- Interest Coverage Ratio or ICR to-market movements and transa
Slide 35: Questions
Questions Shell Coles Express St Kilda, VIC Margaret Kennedy 35
Slide 36: Appendix 1: Summary of acquisitions
Appendix 1: Summary of acquisitions1 Suburb State Region Price ($m)2 Settled Alderley QLD Metro 9.7 No Alice Springs NT Regional 2.9 Yes Annerley QLD Metro 10.8 Yes Blaxland NSW Metro 5.5 Yes Coomera QLD Metro 19.3 No Fawkner VIC Metro 9.3 No Halfway Creek NSW Regional 7.0 Yes Katherine NT Regional
Slide 37: Appendix 1: Summary of acquisitions
Appendix 1: Summary of acquisitions Shell Truganina, VIC Shell Coles Express Fawkner, VIC Shell Coles Express Annerley, QLD Shell Coles Express Laverton North, VIC 37