Finbar Group Limited · ASX:FRI
Finbar — Shareholder Meeting (October 2015)
52 slides from Finbar's shareholder meeting presentation, Oct 27, 2015
Slide 1: FY15 Annual Results Summary & Development Update
For personal use only 27 October 2015 FY15 Annual Results Summary & Development Update 1
Slide 2: Net Profit
Net Profit For personal use only $25.9m net profit. NPAT 29% reduction of NPAT in FY15 40 over last years record result. 35 19th consecutive year of profitability. 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 -5
Slide 3: Earnings Per Share & Dividends
Earnings Per Share & Dividends For personal use only Maintained record ful ly fr anked 18 dividend of $0.10 per share attributable to the year. 16 11th consecutive year of 14 dividends. 12 11.5c EPS being 87% payout ratio 10 in FY15. Retained 8 Final Cents 6 Interim per share 4 2 0 3
Slide 4: Cash Position
Cash Position For personal use only CASH Strong year end record cash position of $69m. 80 70 Well positioned to fund working capital requirements and equity contributions for current project 60 pipeline. 50 $m 40 30 20 10 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Half Year Full Year 4
Slide 5: Source of Earnings FY15
Source of Earnings FY15 For personal use only Core business of property development generated 84% of earnings. 50% owned Spr ing View Tower , Toccata and Subi Str and projects were largest contributors. 8% contribution from rental income. 5
Slide 6: Project Return on Cost & Sales
Project Return on Cost & Sales For personal use only Average Return On Completed Development Projects Retur n on cost consistently 45 above internal target of 25%. 6 year average return on cost 32.8% 40 Consistently operating within band of 19-26% retur n on gross 35 sales. 30 25% targeted retur
Slide 7: Segment Contributions FY15
Segment Contributions FY15 For personal use only Development Other Revaluations Admin Rental Property 45.00 Activity PROFIT 40.00 35.00 30.00 25.00 $m 20.00 15.00 Positive Impact 10.00 Negative Impact 5.00 Profit 0.00 7
Slide 8: Corporate Administration Costs
Corporate Administration Costs For personal use only Administration costs overhead as Net Equity ($m) Admin Costs as % of Net percentage of net equity is 3.2%. Administration Costs Equity Outsourcing model ensures 300 5% company is scal able and efficient. 250 4% 200 Small close team of 19 FTE
Slide 9: Current Project Debt & Coverage
Current Project Debt & Coverage For personal use only Debt & Pre-sales Coverage $164.5m in finance facilities 250 repaid since 1 July 2014. $164.5m 200 No debt on residual stock. 150 $m REPAID REPAID REPAID REPAID REPAID 100%+ debt cover age on 100 remaining project facilities. 50 All debt r
Slide 10: Income Producing Investment Property
For personal use only Income Producing Investment Property 10
Slide 11: Investment Property Values & Gearing Profile
Investment Property Values & Gearing Profile For personal use only Value & Gearing on Investment Assets Loan to Value Ratio across investment property is 43.6% $140 Facilities with Australian Major $120 Equity Banks (CBA & NAB). $100 Debt $80 Millions $60 $40 43.6% LVR Sold $20 $0 Gateway Fairla
Slide 12: Investment Property Leasing
Investment Property Leasing For personal use only 9,000 Fairlanes 92% leased. 8,000 Pelago Commercial 64% leased. 7,000 Pelago Residential 83% leased. 6,000 Sqm 5,000 NLA 4,000 3,000 2,000 1,000 0 Fairlanes Office Pelago Commercial Pelago Residential Leased Vacant 12
Slide 13: Development Update
For personal use only Development Update 13
Slide 14: FY15 Progress Highlights
FY15 Progress Highlights For personal use only Completions Approval s Spring View Towers $99.8m DA Civic Heart ~$414.2m Toccata $84.9m DA Aurelia ~$134.6m Subi Strand $163.9m DA Linq~$66.1m DA Motive~$81.8 Acquisitions & JVs JV Civic Triangle, South Perth ~$414.2m JV 63 Adelaide Te
Slide 15: FY16 Year to Date Development Progress
FY16 Year to Date Development Progress For personal use only Completions Norwood $35.7m Acquisitions & JVs 2 Homelea Court, Springs~$82.8m Approval s DA Sunago~$71.8m DA Anchorage (Stage 1)~$77.3m DA Aire West Perth~$116.9m 31 Rowe Avenue Rivervale ~$97m Commencements Motive ~$81.8m 15
Slide 16: Project Update
For personal use only Project Update 16
Slide 17: Lime Apartments, East Victoria Park
Lime Apartments 185 Swansea Street, East Victoria Park For personal use only Project: 95 residential apartments plus 16 street front commercial lots. Comprises 2 bedroom apartments with an average price of $469,000. Status: Construction Completed Owner ship: 50% owned JV through SPV Val ue: $5
Slide 18: Adagio, East Perth
Adagio 90 Terrace Road, East Perth For personal use only Project: Adagio comprises 113 one and two bedroom apartments and 2 commercial lots within a luxury 23 level building with an average price of $1.43 million. Status: Construction Completed Owner ship: 50% JV with Land Owner Val ue: $164.5
Slide 19: Knightsgate, Currambine
Knightsgate 9 Citadel Way, Currambine For personal use only Project: 43 apartments in a three level 'walk-up' project located 200 metres from Currambine train station. The project comprises one and two bedroom apartments with average price of $346,000. Status: Construction Completed Owner ship:
Slide 20: St Marks, Highgate
St Marks 131 Harold Street, Highgate For personal use only Project: 131 one, two & three bedroom apartments with an average price of $513,000. St Marks won two prestigious UDIA Awards in 2014 the High Density Development Award and the Urban Renewal Award. Status: Construction Completed Owner ship:
Slide 21: Mill Point Rd, South Perth
52 Mill Point Rd 52 Mill Point Road, South Perth For personal use only Project: 8 luxury apartments in 8 storey building. $2.1million average price. Status: Construction Completed Owner ship: 50% share of profit through project management agreement with land owner Val ue: $16.8 million Compl
Slide 22: Au, East Perth
Au 208 Adelaide Terrace & 311 Hay Street, East Perth For personal use only Project: 192 one, two & three bedroom apartments plus 2 ground floor commercial lots. Average price of $555,000. Status: Construction Completed Owner ship: 45% through joint venture equity partners and joint land owner
Slide 23: Ecco, Perth
Ecco 262 Lord Street, Perth For personal use only Project: 90 one, two & three bedroom apartments plus 8 commercial lots with an average price of $527,551. Status: Construction Completed Owner ship: 50% JV with land owner Val ue: ~$51.7 million Completion: FY 14 Sales: Val ue ($m) Lots Und
Slide 24: Spring View Towers, Rivervale
Spring View Towers 3 Homelea Court, Rivervale For personal use only Project: 188 apartments in two residential towers (8 & 16 levels respectively). $530,851 average price. Status: Construction Completed Owner ship: 50% JV through SPV Val ue: ~$99.9 million Completion: FY 15 Sales: Val ue (
Slide 25: Subi Strand, Subiaco
Subi Strand 28 Hood Street, Subiaco For personal use only Project: 245 one, two and three bedroom apartments plus 19 ground floor commercial lots. $620,083 average price. Status: Construction Completed Owner ship: 50% JV through SPV Val ue: ~$163.9m Completion: FY 15 Sales: Val ue ($m) Lot
Slide 26: Toccata, East Perth
Toccata 88 Terrace Road, East Perth For personal use only Project: Toccata comprises 45 luxury apartments plus 2 commercial lots. Average price $1.806 million. Status: Construction Completed Owner ship: 50% JV with land owner Val ue: ~$84.9 million Completion: FY 15 Sales: Under Val ue ($m
Slide 27: Norwood, Perth
Norwood 280 Lord Street, Perth For personal use only Project: 59 boutique apartments plus 4 commercial lots in a six level building. Average price $566,666. Status: Construction Completed Owner ship: 50% JV with land owner Val ue: ~$35.7 million Completion: FY 16 Sales: Val ue ($m) Lots Fo
Slide 28: Arbor North, Rivervale
Arbor North 1 Rowe Avenue, Rivervale For personal use only Project: 154 one and two bedroom apartments with an average price of $490,909. Status: Under Construction Owner ship: 50% JV through SPV Val ue: ~$75.6 million Est. Completion: FY 16 Sales: Val ue ($m) Lots For Sale For Sale Settle
Slide 29: Unison on Tenth, Maylands
Unison on Tenth 2 Tenth Avenue, Maylands For personal use only Project: Unison on Tenth comprises 167 one, two and three bed apartments plus 2 commercial lots. Average price $492,899. Status: Under Construction Owner ship: 50% JV with land owner Val ue: ~$83.3 million Est. Completion: FY 16
Slide 30: Linq, Northbridge
Linq 269 James Street, Northbridge For personal use only Project: Linq comprises 112 one and two bedroom apartments plus 4 commercial lots. The average price is $569,828. Status: Under Construction Owner ship: Wholly owned through subsidiary Val ue: ~$66.1m Est. Completion: FY16 Sales: Val u
Slide 31: Concerto, East Perth
Concerto 189 Adelaide Terrace, East Perth For personal use only Project: Concerto will consist of 226 studio, one, two, and three bedroom apartments plus 1 commercial unit. Once complete Concerto will be East Perth’s tallest residential building at 38 stories. Average price $876,211. Status: Under
Slide 32: Aurelia, South Perth
Aurelia 96 Mill Point Road, South Perth For personal use only Project: Aurelia will consist of 118 one, two and three bedroom apartments plus 6 commercial units and 14 office spaces. Average price $975,362. Status: Under Construction Owner ship: 50% owned JV through SPV Val ue: ~$134.6 million
Slide 33: Motive, West Leederville
Motive 172 Railway Parade, West Leederville For personal use only Project: Motive consists of 143 one and two bedroom apartments with an average price of $572,028. Status: Under Construction Owner ship: 50% JV with land owner Val ue: ~$81.8 million Est. Completion: FY18 Sales: Val ue ($m) Lo
Slide 34: Sunago, Dianella
Sunago 36 Chester Avenue, Dianella For personal use only Project: Sunago will consist of 163 one and two bedroom apartments. Approximate average price of $440,491. Status: DA Approved. Launching 2015 Owner ship: 50% owned JV through SPV. Val ue: ~ $71.8 million Est. Completion: FY 18 Sales
Slide 35: Harper Terrace, South Perth
Harper Terrace 5 Harper Terrace, South Perth For personal use only Project: Approximately 42 luxury apartments plus approximately 1,800 square metres of ground floor retail and level one office space. Status: Development application being submitted October 2015. Ownership: Wholly owned through s
Slide 36: Rowe Avenue, Rivervale
31 Rowe Avenue 31 Rowe Avenue, Rivervale For personal use only Project: 31 Rowe Avenue will consist of 183 one, two and three bedroom apartments plus 7 commercial units to be constructed on 4,000m 2 development site situated at the main entrance to the Springs precinct. Status: Development approval
Slide 37: Unison on Kennedy, Maylands
Unison on Kennedy 1 Kennedy Street, Maylands For personal use only Project: Unison on Kennedy is the second stage to the Unison development. Unison on Kennedy will consist of 180 one, two and three bedroom apartments plus 2 commercial lots. Status: DA Approval Ownership: 50% JV through SPV Value
Slide 38: Aire West Perth
Aire West Perth 647-659 Murray Street, West Perth For personal use only Project: Aire West Perth will consist of 178 one, two and three bedroom apartments plus 64 serviced apartments as well as 2 ground floor commercial units. Status: DA Approved. Launching 2015. Owner ship: 50% JV through SPV
Slide 39: Arbor South, Rivervale
Arbor South Lots 1002 & 1003 Rowe Avenue, Rivervale For personal use only Project: Arbor South will consist of approximately 132 apartments to be constructed on the balance of 286 unit development site. To comprise 1 & 2 bedroom apartments. Status: In Planning Owner ship: 50% JV through SPV Va
Slide 40: Belmont, Great Eastern Highway
Belmont 239 Great Eastern Highway, Belmont For personal use only Project: Approximately 194 apartments plus 2 ground floor commercial lots to be constructed on 5,692m 2 development site in Belmont . Status: DA submitted Ownership: Wholly owned through subsidiary Value: ~$84.1 million Est. Comp
Slide 41: East Perth, Adelaide Terrace
East Perth 63 Adelaide Terrace, East Perth For personal use only Project: 63 Adelaide Terrace will consist of 247 one, two and 3 bedroom apartments plus 3 commercial units and 2 office units. Status: DA Submitted Owner ship: 50% JV through SPV Val ue: ~$161.7 million Est. Completion: FY 19 S
Slide 42: Homelea Court, Rivervale
2 Homelea Court Cnr Rowe Avenue and Homelea Court, Rivervale For personal use only Project: 2 Homelea Court will consist of approximately 185 apartments with in 10 level building. The site is comprised of four vacant blocks totaling 3,770 square metres. Status: In Planning Owner ship: Wholly owned
Slide 43: Civic Triangle, South Perth
Civic Triangle 1 Mends Street, South Perth For personal use only Project: The Civic Triangle will consist of 294 one, two, three bed apartments plus 19 commercial units that consists of a supermarket, commercial grade gym, medical suites, child care facilities, retail and office spaces. Average pric
Slide 44: Springs Office, Rivervale
Springs Office Lot 1020 Rowe Avenue Rivervale For personal use only Project: 6 level office building comprising 6,250m 2 NLA. 86 residential apartments option. Status: Development approved. Pre-leasing Owner ship: 50% JV through SPV Val ue: ~$37.6 million Est. Completion: FY 19 Pre-Leasing
Slide 45: Anchorage (Stage 1), Port Hedland
Anchorage (Stage 1) Lot 452 Sutherland & Morgans Street, Port Hedland For personal use only Project: The first stage of the proposed redevelopment of 3.15ha site into approximately 700 apartments plus ground floor commercial lots over four stages. Purchase subject to viability. Status: DA Approval
Slide 46: Pipeline Summary
For personal use only Pipeline Summary 46
Slide 47: Pipeline Estimated Completion Summary
Pipeline Estimated Completion Summary For personal use only Note: Anchorage Port Hedland Stages 2, 3, & 4, not included in this Summary 47
Slide 48: Residential Sales Contract Activity
Residential Sales Contract Activity For personal use only Subi Strand Aurelia Linq 120 531 sales worth $378.4m in FY15 52 Mill Pt Concerto being average of 1.45 sales / Civic Heart $1.04 mil l ion per day. 100 Arbor North Unison 10th Spring View Towers Motive 154 sales worth $131.6m in 80 Norwoo
Slide 49: Accrued Presales Total
Accrued Presales Total For personal use only St Marks 52 Mill Pt Subi Strand $600 Pelago East Millions Toccata Pelago West Au Spring View Norwood $500 Ecco Towers Adagio $400 Lime $300 $200 FY13 FY14 FY15 FY16 $100 Project $m Settlement Date 49
Slide 50: Cumulative Units Sold
Cumulative Units Sold For personal use only 8000 7000 4494 units developed to date. 6000 Anticipating to develop and settle an additional 3057 over next four 5000 years. Units 4000 3000 2000 1000 0 9697 989900 01 03 04 05 07 08 09 10 11 12 13 14 15 16 17 18 19 Year 50
Slide 51: Further information
For personal use only Further information, please visit www.finbar.com.au 51
Slide 52: Important Notice
Important Notice For personal use only 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 (or symbol