Slide 1: 2010 Annual Results
For personal use only 2010 ANNUAL RESULTS
Slide 2: Presentation Outline
Presentation Outline For personal use only Highlights 2010 results Property portfolio Residential market Outlook Investment case
Slide 3: Highlights
Highlights For personal use only Net profit $17.2m, up 86% Final dividend 8 cents fully franked, full year payout up 86% Low net bank debt/equity of 36% New 3 year $110m bank finance facility $100m in presales for FY2011 Forecast FY2011 NPAT approximately $22m No significant equity rai
Slide 4: 2010 Operating Results
2010 Operating Results For personal use only FY2010 FY2009 $m $m Revenue 108.4 107.1 1.3% Profit before income 24.7 13.5 83% tax expense Net profit after tax 17.2 9.3 86% Earnings per share 29.0 cents 16.2 cents 79% Dividend per share 13 cents 7 cents 86%
Slide 5: Results Summary
Results Summary For personal use only Strong turnaround compared to prior year Melbourne sales strong, Perth sales improving Margin improvements caused by price growth in Melbourne, and lower proportion of first homebuyers No material ‘mark to market’ adjustments Impairments of $2.0m ($9.3
Slide 6: Performance Against Targets
Performance Against Targets For personal use only Actual Target EPS growth 79% 10% Return on equity 18% 12% EBIT margin 24.7% 20% Net debt/equity 36% 20-75%
Slide 7: Operating Results
For personal use only Operating Results
Slide 8: Cash Flows
Cash Flows For personal use only Cash flows related to FY2010 FY2009 Receipts similar to PCP operating activities $M $M Reduced borrowing Receipts from customers 119.4 119.3 costs due to lower debt and lower interest rates Interest received 0.4 0.8 Payments for land and Payments to suppliers &
Slide 9: Financial Highlights
Financial Highlights For personal use only FY2010 FY2009 Total assets increased to $205.7m due to Total assets $m 205.7 162.7 new acquisitions Net bank debt $m 39.7 47.9 Gearing dropped to 36.5% at end of FY2010, well within target range of 20-75%. Shareholders’ $m 108.8 93.3 equity Net bank deb
Slide 10: Asset Values
Asset Values For personal use only Major assets acquired before property boom Review of property portfolio, write downs less than 1% of value Projects de-risked, under development Share price significantly understates underlying value of portfolio
Slide 11: Hedging
Hedging For personal use only Seek to hedge >50% of debt Previous interest rate environment – caps, now largely written off 2 & 4 year swaps at rates between 4.0 to 4.5% Hedged 75% of June 30 debt Swap terms expire 2011 – 2014
Slide 12: Dividend Policy
Dividend Policy For personal use only Fully franked interim dividend of 5 cents per share paid on 30th April 2010 Fully franked final dividend of 8 cents per share payable on 29 October 2010 Policy unchanged – approx 50% of full year net profit Dividend reinvestment plan (DRP) is available f
Slide 13: Bank Finance
Bank Finance For personal use only New $110m corporate finance in place with ANZ 3 year term, expiring 31 August 2013 Club facility allows other banks to join Anticipate funding will commence 31 August 2010, working through final conditions Interest cover and LVR covenants
Slide 14: Impacts of G.F.C. - Equity raisings
Impacts of G.F.C. - Equity raisings For personal use only Significant raisings in property sector during GFC Dilution of peer group companies from 35% to over 300% CWP’s significant debt reduction through operating cash flow Minimal equity raised in the last 2 years by CWP Low dilution of
Slide 15: Strong, mature land bank
Strong, mature land bank For personal use only Portfolio of well located projects Majority of land bank acquired well before property boom and GFC, zoned with approvals Land bank in WA & VIC provides diversity Major projects mature and providing income Diverse product range Share price w
Slide 16: Property Portfolio
For personal use only Property Portfolio
Slide 17: Project Life - Perth
Project Life - Perth For personal use only FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Rivergums Cambridge Waters Mariners Cove Mandurah Country Club Kestrels Waterline (including stage 2) The Jetty Port Mandurah (Sutton) Forrestdale Cedar Woods Wellard Carine Harrisdale Bushmead Pinjarr
Slide 18: Residential – Built Form
Residential – Built Form For personal use only
Slide 19: Residential – Built Form
Residential – Built Form For personal use only
Slide 20: Residential
For personal use only Residential
Slide 21: Residential
For personal use only Residential
Slide 22: Mangles Bay
For personal use only Mangles Bay
Slide 23: Bushmead – 15km from Perth CBD
Bushmead – 15km from Perth CBD For personal use only
Slide 24: Project Life – Melbourne
Project Life – Melbourne For personal use only FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Carlingford Williams Landing Banbury Village Camberwell
Slide 25: Williams Landing
For personal use only Williams Landing
Slide 26: Williams Landing Town Centre
Williams Landing Town Centre For personal use only
Slide 27: Banbury Village
For personal use only Banbury Village
Slide 28: Carlingford
For personal use only Carlingford
Slide 29: Camberwell
For personal use only Camberwell
Slide 30: Residential Market Drivers
Residential Market Drivers For personal use only Population growth – long term driver Confidence Employment Availability of finance Incentives Affordability (prices, interest rates) Rental alternative
Slide 31: Population Growth
Population Growth For personal use only Source: ABS 3101.0 Source: ABS 3101.0
Slide 32: Market Drivers
For personal use only Market Drivers
Slide 33: Market Conditions
Market Conditions For personal use only Victoria sound fundamentals, continued state stimulus strong first and second home buyer sales population growth/lack of rentals strong price growth, now easing WA resource projects continuing – new Port Hedland project strong price growth, expecte
Slide 34: Outlook
Outlook For personal use only Over $100m pre sales for FY11 Strong first half FY11 $22m NPAT forecast for FY11 (up 28%) Forecast FY11 EPS approximately 35 cents Forecast FY11 dividend approximately 17 cents based on current dividend policy Well positioned for further growth
Slide 35: Investment case for CWP
Investment case for CWP For personal use only Well established company, experienced Board and Management Clear focus on targets and proven transparent business model Growing profits and strong balance sheet No dilutive capital raisings during G.F.C. Well located and mature property portfol
Slide 36: Investment case for CWP
Investment case for CWP For personal use only CWP AVERAGE FOR PEERS3 PER1 FY10 actual 8.3 10.2 FY11 forecast 6.9 9.3 Yield1 FY10 actual 5.4% 5.1% FY11 forecast2 7.3% 5.7% NOTES 1. Based on share price of $2.40 2. Based on current dividend policy of 50% payout ratio 3. Leading WA broker selection of
Slide 37: 2010 Annual Results
For personal use only 2010 ANNUAL RESULTS