Slide 1: HY25 Results Presentation
HY25 RESULTS PRESENTATION 24 FEBRUARY 2025 201 Elizabeth 14 MartinStreet, Place, Sydney NSW
Slide 2: Agenda
ABACUS GROUP HY25 RESULTS Agenda 01 Overview 02 Key financial metrics and capital management 03 Operating performance 04 Outlook and guidance Steven Sewell, Evan Goodridge, Kevin George, Steven Sewell, Managing Director CFO Group General Manager - Managing Director Commercial & Fund Manager ABG Abac
Slide 3: HY25 Metrics
HY25 METRICS TOTAL ASSETS WEIGHTED AVG GEARING NET TANGIBLE OCCUPANCY2 GGGGG CAP RATE1 S ASSETS GGGGGG $2.6bn 6.66% 34.0% $1.72ps 91.6% 1.5% on FY24 16bps on FY24 20bps on FY24 2.3% on FY24 20bps on LFL FY24 STATUTORY PROFIT FFO FFO PER SECURITY DPS4 LEASING DEALS5 ($5.7m) $40.2m 4.50cps 4
Slide 4: HY25 Highlights
324 Queen Street, Brisbane QLD HY25 HIGHLIGHTS The Commercial portfolio continues to perform well c.$200m Divestments since 1 July 20231 Office Retail Self Storage 29,600sqm 4.0% 5.4% leasing deals average rent review revPAM growth vs. HY24 46 new deals in HY25, with net Concentrated portfolio of qu
Slide 5: Key Financial Metrics & Capital Management
KEY FINANCIAL METRICS & CAPITAL MANAGEMENT EVAN GOODRIDGE 11 Bowden Street, Sydney NSW
Slide 6: Operating Earnings Summary
OPERATING EARNINGS SUMMARY $ millions HY25 HY24 Change Comments Office operating earnings1 44.0 39.3 12.0% Driven by increased average physical occupancy, rent reviews and early surrender fees ($2.4m) Retail LFL operating earnings1 12.0 10.4 15.4% Driven by an increase in average physical occupancy,
Slide 7: HY25 Balance Sheet Allocation
HY25 BALANCE SHEET ALLOCATION 31 December 2024 30 June 2024 $ 2.6bn 58% OFFICE $1.5bn 16% RETAIL $0.4bn 16% ASK $0.4bn 10% OTHER $0.3bn Total Assets $ 2.6bn 57% OFFICE $1.5bn 17% RETAIL $0.4bn 16% $0.4bn 10% $0.3bn ASK OTHER Total Assets Office $1,496m 14 properties Office $1,510m 14 properties Reta
Slide 8: Capital Management
CAPITAL MANAGEMENT Sufficient liquidity with over $250 million in acquisition capacity and covenant headroom NTA1 Total assets Acquisition capacity2 HY25 avg. cost of debt3 Gearing4 Debt term to maturity $1.72ps $2.6bn >$250m 5.1% 34.0% 2.9yrs Debt expiry profile Interest rate hedging – drawn Hedgin
Slide 9: Valuation Update
VALUATION UPDATE Office assets are at or near the bottom of the valuation cycle Commercial $1,885m $9m $27m $1,818m ($44m) ($59m) 1 FY24 investment Net income Cap rate Capex & Divestments HY25 investment property value growth expansion other property value WACR: 6.50% WACR: 6.66% 1. Includes divestm
Slide 10: Operating Performance
OPERATING PERFORMANCE KEVIN GEORGE 710 Collins Street, Melbourne VIC
Slide 11: Operational Priorities
OPERATIONAL PRIORITIES Key components of ABG growth over the medium term Grow earnings Optimise platform Portfolio Leasing Cost Grow non-rent Technological construction initiatives control income improvements Reduced gearing Continue innovating Focus on cost Pursue partnerships Committing the suppor
Slide 12: Value Proposition and Customer Focus
VALUE PROPOSITION AND CUSTOMER FOCUS The Group has a diversified, well located and adaptive portfolio of largely A-grade assets Flight to value SME customers (61% of customers by number) are prioritising well-located, amenity-rich spaces at competitive price points, positioning our portfolio strongl
Slide 13: Office Snapshot
OFFICE SNAPSHOT Portfolio of 14 Office assets valued at $1.5 billion as at 31 December 2024 OCCUPANCY1 WALE1 YTD LEASING DEALS2 YTD RENT GROWTH1 89.9% 3.7yrs 46 6.3% LFL FY246: 90.2% LFL FY246: 3.8yrs HY24: 53 HY24: 5.4% WACR A-GRADE BUILDINGS3 CUSTOMERS2,4 SME CUSTOMERS2,4,5 6.71% 78% 338 61% FY24:
Slide 14: Office Leasing Metrics
OFFICE LEASING METRICS Strong leasing spreads achieved in a challenging office environment 29,563 35% 7.5% 3.7% $781psm sqm leased1 average gross net face leasing average rent average net face incentive spreads review rent2 HY24: 22,776 sqm HY24: 31% HY24: 10.2% HY24: 3.7% FY24: $750psm 67% new 37%
Slide 15: Office Leasing Expiry
OFFICE LEASING EXPIRY1 Underpinned by geographical diversity NSW QLD VIC SA ACT 20% 81% vacant Office area fitted2 15% 13% 11% 9% 3% 2% Vacant Short Term 2H25 FY26 FY27 FY28 FY29 Major Vacancies: Major Expiries: Major Expiries: Major Expiries: Major Expiries: Major Expiries: Major Expiries: 710 Coll
Slide 16: Retail Snapshot
RETAIL SNAPSHOT Portfolio of 2 Retail assets (1 centre and 1 CBD asset) valued at $0.4 billion as at 31 December 2024 OCCUPANCY WALE NET FACE LEASING SPREADS 97.0% 5.6yrs 3.1% LFL FY241: 96.8% LFL FY242: 6.0yrs LFL HY24: 11.1% YTD LFL RENT GROWTH WACR AVG. RENT REVIEW 3.3% 6.44% 4.0% HY24: 5.5% FY24
Slide 17: Self Storage Snapshot
SELF STORAGE SNAPSHOT 19.8% owner and manager of $3.3 billion Self Storage REIT, Abacus Storage King (ASX:ASK) ASK REVPAM1 ASK AVG. RENT PSM1 ASK OCCUPANCY1 $339 $373 91.0% 5.4% on HY242 4.4% on HY242 90bps on HY242 ASK WACR ASK TOTAL ASSETS ASK FFO PER SECURITY 5.56% $3.3bn 3.3cps 1bp on FY
Slide 18: Outlook and Guidance
OUTLOOK AND GUIDANCE STEVEN SEWELL 459 - 471 Church Street, Richmond VIC
Slide 19: Outlook and Guidance
OUTLOOK AND GUIDANCE Owning and managing an Australian eastern Abacus Group FY25 Guidance seaboard focused Active asset management and diversified leasing strategies • Abacus Group reaffirms FY25 distribution guidance of 8.5 cents Commercial portfolio to drive income growth throughout our portfolio
Slide 20: Contents
CONTENTS STATUTORY EARNINGS RECONCILIATION SLIDE 21 PROFIT AND LOSS OVERVIEW SLIDE 22 BALANCE SHEET OVERVIEW SLIDE 23 DEBT FACILITIES SLIDE 24 INVESTMENT PORTFOLIO METRICS SLIDE 25 ESG SLIDE 26 COMMERCIAL PORTFOLIO SLIDE 27 GLOSSARY SLIDE 28 IMPORTANT INFORMATION SLIDE 29 77 Castlereagh Street, Sydn
Slide 21: Statutory Earnings Reconciliation
STATUTORY EARNINGS RECONCILIATION Performance metrics ($m) HY25 HY24 Term Definition Statutory profit (5.7) (143.6) Discontinued operations - (1.0) FFO is in line with the PCA’s definition and comprises net profit/loss Fair value adjustments 28.5 170.9 after tax attributable to stapled security hold
Slide 22: Profit and Loss Overview
PROFIT AND LOSS OVERVIEW Performance metrics ($m) HY25 HY24 Comments Rental income 81.1 77.4 Rental growth offset by divestments of assets Fee, finance and other income 11.1 9.7 Increase driven by ASK fees received for full 6 months Share of profit from equity accounted investments 11.6 10.5 Increas
Slide 23: Balance Sheet Overview
BALANCE SHEET OVERVIEW HY25 FY24 Investment properties $1,817.7m $1,885.0m PP&E, equity and other investments, financial and other assets $638.2m $621.3m Loans $55.9m $55.9m Cash and cash equivalents $41.0m $23.5m Goodwill and intangibles $32.4m $32.4m Deferred tax assets $1.9m $8.2m Total assets $2
Slide 24: Debt Facilities
DEBT FACILITIES Capital management metrics HY25 FY24 Comments Total bank debt facilities $1,183m $1,183m Total bank debt drawn $907m $904m Term to maturity 2.9yrs 3.4yrs Interest rate hedging 90% 76% Weighted average hedge maturity 2.6yrs 2.6yrs Average cost of debt - drawn 5.1% 4.4% Average cost of
Slide 25: Investment Portfolio Metrics
INVESTMENT PORTFOLIO METRICS Portfolio metrics HY25 Office Retail ASK Other1 Total Investment portfolio sector diversification Value ($m) 1,496 402 423 266 2,587 No. of assets 14 2 - 2 18 Office 58% NLA2,3 (sqm) 147,631 45,438 - - 193,069 Retail 16% WACR (%) 6.71 6.44 - - 6.65 ASK 16% Other 10% Occu
Slide 26: ESG: Focus
ESG: FOCUS Vision: To concentrate on select real estate sectors that deliver long term and sustainable outcomes through active investment, asset and development management and a strong focus on customer and brand awareness Minimising our environmental Emission intensity: impact through conservation
Slide 27: Commercial Portfolio
COMMERCIAL PORTFOLIO $2.0bn portfolio, 96% exposed to the Eastern Seaboard 21% QLD $420 million Office 3 $243m 18 Retail 1 $177m 43% NSW $857 million Assets QLD Office 5 $781m 4 Other1 2 $76m SA 3% ACT 1 NSW $55 million ACT 7 Office 1 $55m 1 4% SA VIC 29% VIC 5 $563 million $79 million Office 1 $79m
Slide 28: Glossary
GLOSSARY TERM DEFINITION TERM DEFINITION ABG Abacus Group KPI Key performance indicator ASK Abacus Storage King LFL Like for like ASX Australian Securities Exchange NABERS National Australian Built Environment Rating System CBD Central business district NLA Net lettable area CPI Consumer price index
Slide 29: Important Information
IMPORTANT INFORMATION The information provided in this document is general, and may not be suitable for the specific purpose of any user of this document. It is not financial advice or a recommendation to acquire Abacus Group securities (ASX:ABG). Abacus Group believes that the information in this d