Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Australand Property Group — Shareholder Meeting (April 2009)
20 slides from Singapore Exchange's shareholder meeting presentation, Apr 16, 2009
Slide 1: Introduction
Introduction 2008 Results Divisional Performance Capital Management Update Operational Update Group Outlook HJ Heinz Co, QLD (artists impression) Annual and General Meetings Page 1
Slide 2: Overview of 2008 Results
Overview of 2008 Results 2008 2007 Operating profit1 $175m $163m Unrealised gain / (loss) from property revaluations $(97)m $106m Significant one-off items: Write-down of Residential inventories $(35)m - Restructure costs $(3)m - Statutory profit $40m $269m Earnings per stapled security2 13.1c 14.5c
Slide 3: 2008 Divisional Performance – Investment Property
2008 Divisional Performance – Investment Property Strong performance from our quality Investment Property portfolio Operating profit up 14% to $134 million Comparable rental growth of 3.3% Portfolio increased from $1.9 billion to $2.3 billion in 2008 Annual and General Meetings Page 3
Slide 4: 2008 Divisional Performance – C&I
2008 Divisional Performance – C&I Commercial & Industrial Division has delivered strong growth over the past 3 years Operating Profit up 11% to $78 million Delivery of 383,000m2 of new space, including Coles (Brisbane & Perth) & Corporate Express (NSW) Completion of Twenty8 Freshwater, a 34,00
Slide 5: 2008 Divisional Performance - Residential
2008 Divisional Performance ‐ Residential Solid results from our Residential Division Operating profit down 11% to $95 million Sales volumes down 17% but offset by super‐lot sales Residential Development Fund established with BOSI in June 2008 Capital employed reduced by $221 million to $1.1
Slide 6: Capital Management
Capital Management A number of pre-emptive steps were taken in 2008 to strengthen our Balance Sheet Entitlement Offer raising $461 million Revised dividend/distribution policy Elected to step up the distribution rate on the $275 million of ASSETS hybrid securities Focus on cashflow managemen
Slide 7: Capital Management
Capital Management Refinancing of the maturing facilities a key focus for the Group Annual and General Meetings Page 7
Slide 8: Capital Management
Capital Management Good progress being made with our refinancing requirements 2009 Maturities Unsecured Facilities $150 million $100 million extended for a further 1 year term Negotiations underway for renewal of $50 million for 3 year term CMBS Refinance $563 million $350 million of replaceme
Slide 9: Capital Management
Capital Management We continue to comply with all debt covenants Debt Covenant Compliance All debt covenants comfortably met in 2008 and the business continues to operate well within covenants Given current market environment, key covenants have been successfully renegotiated to provide adequate
Slide 10: Operational Update – Industrial Sector
Operational Update – Industrial Sector Contracting supply and demand Supply and demand have been strong over the last 4 years but have contracted sharply as economic conditions deteriorated No real oversupply in the major markets and supply is expected to remain constrained Rental growth and t
Slide 11: Operational Update – Office Sector
Operational Update – Office Sector Major markets weakening in near-term Demand is expected to continue to contract as unemployment increases Most major markets not in oversupply however vacancy is increasing Limited transaction activity, positive yield spreads and weaker dollar beginning to ge
Slide 12: Operational Update – Investment Property
Operational Update – Investment Property Portfolio attributes remain robust and well positioned for current environment Well diversified portfolio Quality assets with average property age of 6.4 years Occupancy ~99%, with less than 5% of expiries before 2011 Strong tenant profile with fixed
Slide 13: Operational Update – Asset Sales
Operational Update – Asset Sales Asset sales of approximately $76 million achieved to‐date Asset sales of approx $130 ‐ $150 million targeted for the full year We have now contracted approximately $76 million in sales Average of ~8% discount to book values Post Logistics, Eastern Creek, NSW An
Slide 14: Operational Update – C&I Division
Operational Update – C&I Division Our pre-committed workload has contracted from 2008 levels Our land banks are located in key markets with approx 50% in Melbourne, the most stable and affordable market Committed pipeline for the investment portfolio has been curtailed and investor appetite rema
Slide 15: Operational Update – Residential Sector
Operational Update – Residential Sector The residential sector fundamentals remain robust in contrast to offshore markets Demand continuing to outstrip supply Affordability now improving with interest rate cuts and easing inflationary pressure Increased First Home Owner Grants stimulating the
Slide 16: Operational Update – Residential Division
Operational Update – Residential Division Solid pipeline of over 16,000 lots for the future 62% of the pipeline targeted at the more affordable end of the market 45% of the pipeline weighted to VIC market, where fundamentals remain positive Q1 2009 sales biased toward affordable end of market.
Slide 17: Group Outlook
Group Outlook Plans for growth recalibrated to reflect market conditions and a prudent approach Asia expansion with CapitaLand shelved Development activities being constrained Efficiency measures implemented, saving ~20% on prior year Redefined strategies and priorities Completion of CMBS re
Slide 18: Group Outlook
Group Outlook Stable income from quality Investment Portfolio Decline in earnings in both Development divisions Group operating profit expected to be down approx. 30% on FY2008 Subject to no further material deterioration in market conditions Asset values expected to decline in 2009, impac
Slide 19: Group Outlook – Dividends & Distributions
Group Outlook – Dividends & Distributions Dividend and Distribution Policy Policy amended in 2008 such that no dividends will be paid from the corporate/development earnings with only the Trust earnings being distributed Distributions paid six monthly in line with majority of listed property p
Slide 20: Thank You
Thank You Pavilions on the Park, St Leonards, NSW Annual and General Meetings Page 20
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