Slide 1: Finbar Group Limited – Company Presentation & Project Update
14 March 2018 Finbar Group Limited – Company Presentation & Project Update
Slide 2: Agenda
Agenda About Finbar Page 03 Development Update Page 16 Completed Projects with Stock For Sale Page 18 Projects Under Construction Page 23 Projects in Marketing Page 28 Development Approvals Received Page 34 In Planning and Design Page 39 Sales Activity Page 49 2
Slide 3: About Finbar
Agenda Page Title About Finbar Finbar is Western Australia’s largest and most trusted residential apartment developer. Since its establishment in 1995, Finbar has completed over 5,300 units and proudly continues to shape the landscape and lifestyles of Western Australia. Affiliating with equity part
Slide 4: Finbar Completed Projects
Agenda Page Title Finbar Completed Projects 4
Slide 5: Units Completed
Cumulative Units Developed 6000 - 5305 units developed to date on 66 projects 5000 - Additional 3255 units in secured pipeline Units Completed 4000 3000 2000 1000 0 96 9798 99 00 01 03 04 05 07 08 09 1011 12 13 14 15 16 17 18 Year Source: Finbar Group Ltd 5
Slide 6: FRI - Snapshot
FRI - Snapshot 13 March 2018 Shares: Share Price: $0.95 Other: NTA: $0.90 Staff: 18 52 Week High/Low: $0.76 - $1.10 Completed Projects with Stock For-Sale: $74 million Market Cap: $220 million Projects Under Construction: $172 million Shares Issued: 231.3 million Projects in Marketing: $198 million
Slide 7: Executive Management
Executive Management An experienced management team with long term view and commitment to the business Mr John Chan – Executive Chairman (BSc, MBA, MAICD) Joined Finbar in 1995 Director since 27 April 1995 Chairman since 15 July 2010 Mr Darren John Pateman – Managing Director (EMBA, GradDipACG, ACSA
Slide 8: Finbar's Market Share of Active Projects (in units) in WA
Finbar’s Market Share of Active Projects (in units) in WA 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Finbar Edge Visionary Frasers Blackburne Mirvac Match Fragrance Psaros Far East Living Property Property Group Group Consortium Australia Source: Urbis Apartment Essentials Q4 2017
Slide 9: Finbar's Market Share of Units in WA Under Construction
Finbar’s Market Share of Units in WA Under Construction 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Finbar Fragance Far East Stirling Blackburne Edge Mirvac Psaros Norup + Defence Group Consortium Capital Visionary Wilsion Housing Living Source: Urbis Apartment Essentials Q4 2017
Slide 10: Net Profit
Net Profit NPAT 40 35 ➢ 21 consecutive years of profitability. 30 ➢ FY18 Guidance: “full year results to substantially exceed 2017” 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 FY16 FY17 -5 10 Source: Finbar Group Ltd
Slide 11: Operating Profits and Revaluations on Investment Properties
Operating Profits and Revaluations on Investment Properties $50 $40 $30 $20 $m $10 $- FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 HY18 -$10 -$20 Operating Profit Revaluations Source: Finbar Group Ltd 11
Slide 12: Investment Properties
Investment Properties FAIRLANES PELAGO 181 Adelaide Terrace East Perth 23 & 26 Sharpe Avenue Karratha ➢ 7,586 sqm of office ➢ 101 apartments & 21 building commercial lots ➢ Leased to Downers, ➢ Leased to small business Broadspectrum, Finbar’s & predominantly corporate office, & corporate residential
Slide 13: Dividend History
Dividend History 18 ➢ Fully franked interim dividend of 16 $0.03 per share ➢ 20 consecutive years of franked 14 dividends 12 Cents per share ➢ $51m in retained earnings 10 Retained 8 Final 6 Interim 4 2 0 HY18 FY06 FY08 FY10 FY12 FY14 FY16 FY02 FY03 FY04 FY05 FY07 FY09 FY11 FY13 FY15 FY17 Source: Fi
Slide 14: Cash Position
Cash Position CASH ➢ Half year cash position of $35.2m. $80 ➢ Committed to working capital $70 requirements and equity contributions for project commencements. $60 ➢ No debt on residual stock with $50 settlement cashflow to bolster $m working capital for redeployment $40 into construction commenceme
Slide 15: Project Debt & Pre-Sale Coverage
Project Debt & Pre-Sale Coverage Debt & Pre-sales Coverage ➢ $102m in finance facilities were $175 repaid in HY18 from settlement proceeds. $150 $102m ➢ No debt on residual stock. $125 ➢ Strong presales coverage on $100 remaining project facilities. $75 REPAID FY18 REPAID FY18 ➢ All debt project spe
Slide 16: Development Update
Agenda Page Title Development Update 16
Slide 17: Completed Projects with Stock For Sale
Agenda Page Title Completed Projects with Stock For Sale 17
Slide 18: Unison on Tenth
Unison on Tenth 2 Tenth Avenue, Maylands Project: Unison on Tenth comprises 167 one, two and three bed apartments plus 2 commercial lots. Average price $464,497. ▪ Status: Construction Completed ▪ Ownership: 50% JV with land owner ▪ Value: ~$78.5 million ▪ Completed: FY16 ▪ Sales: Value ($m) Lots Fo
Slide 19: Linq
Linq 269 James Street, Northbridge Project: Linq comprises 112 one and two bedroom apartments plus 4 commercial lots. The average price is $525,000. ▪ Status: Construction Completed ▪ Ownership: Wholly owned through subsidiary ▪ Value: ~$60.9 million ▪ Completed: FY16 ▪ Sales: Value ($m) Lots For Sa
Slide 20: Concerto
Concerto 189 Adelaide Terrace, East Perth Project: Concerto consists of 226 studio, one, two, and three bedroom apartments plus 1 commercial unit. Concerto is East Perth’s tallest residential building at 38 stories. Average price $842,291. ▪ Status: Construction Completed ▪ Ownership: 50% JV with la
Slide 21: Motive
Motive 172 Railway Parade, West Leederville Project: Motive consists of 143 one and two bedroom apartments with an average price of $523,076. ▪ Status: Construction Completed ▪ Ownership: 50% JV with land owner ▪ Value: ~$74.8 million ▪ Completed:FY17 ▪ Sales: Value ($m) Lots For Sale For Sale 29.7
Slide 22: Completed Unsold Stock
Completed Unsold Stock From 30 June 2017 to Year-to-date: $160 - Reduced completed stock by 47.7%. Millions Total Unsold Completed Stock: $140 - $74.0m $120 $100 $80 $60 $40 $20 $- Jun-15 Jun-16 Jun-17 Sep-16 Feb-15 Aug-15 Sep-15 Feb-16 Aug-16 Feb-17 Aug-17 Sep-17 Feb-18 Oct-17 Oct-15 Dec-15 Oct-16
Slide 23: Projects Under Construction
Agenda Page Title Projects Under Construction 23
Slide 24: Aurelia
Aurelia 96 Mill Point Road, South Perth Project: Aurelia will consist of 118 one, two and three bedroom apartments plus 6 commercial units and 14 office spaces. Average price $988,406. ▪ Status: Under Construction ▪ Ownership: 50% JV with land owner ▪ Value: ~$136.4 million ▪ Est. Completion: FY18 ▪
Slide 25: Aire West Perth
Aire West Perth 647-659 Murray Street, West Perth 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. Approximate average price of $434,426. ▪ Status: Under Construction ▪ Ownership: 50% JV through
Slide 26: Vue Tower
Vue Tower 63 Adelaide Terrace, East Perth Project: Vue Tower will consist of 247 one, two and 3 bedroom apartments plus 3 commercial units and 2 office units. Approximate price of $582,143. ▪ Status: Under Construction ▪ Ownership: 50% JV with land owner ▪ Value: ~$146.7 million ▪ Est. Completion: F
Slide 27: Reva
Reva 5-7 Harper Terrace, South Perth Project: Reva will consist of 42 luxury apartments plus 18 commercial lots of ground floor retail and level one office space. Average price of $826,666. ▪ Status: Under Construction ▪ Ownership: Wholly owned through subsidiary ▪ Value: ~$49.6 million ▪ Est. Compl
Slide 28: Pre Construction Marketing
Agenda Page Title Pre Construction Marketing 28
Slide 29: Palmyra East
Palmyra East 45 McGregor Road, Palmyra Project: Palmyra East will consist of 128 one, two and three bedroom apartments. Average price of $390,063. ▪ Status: In Marketing ▪ Ownership: 50% JV with land owner ▪ Value: ~$50 million ▪ Est. Completion: TBC ▪ Sales: Value ($m) Lots Settled Settled Under 0
Slide 30: Sabina
Sabina 910 Canning Highway, Applecross Project: Sabina is the first stage of the Canning Hwy development and will consist of approximately 173 one, two, three bed apartments, and 3 ground floor commercial lots. Average price of $714,205. ▪ Status: Launched on the 10 February 2018 ▪ Ownership: 50% JV
Slide 31: Circa Apartments
Circa Apartments 5-7 Rowe Avenue, Rivervale Project: Circa will consist of 132 one and two bedroom apartments. Approximate price of $361,363. ▪ Status: Launched on the 3 March 2018 ▪ Ownership: 50% JV through SPV ▪ Value: ~$47.7 million ▪ Est. Completion: TBC ▪ Sales: Value ($m) Lots Settled Under S
Slide 32: Off-the-Plan Unsold Stock Being Marketed
Off-the-Plan Unsold Stock Being Marketed From 30 June 2017 to Year-to-date: - Launched Palmyra East, Sabina and Circa. Total Unsold Off-the-Plan Stock: $450 - $368.1m Millions $400 $350 $300 $250 $200 $150 $100 $50 $- Jun-15 Jun-16 Jun-17 Feb-17 Feb-15 Aug-15 Sep-15 Feb-16 Aug-16 Sep-16 Aug-17 Sep-1
Slide 33: Residential Pre-sales Contracts Activity
Residential Pre-sales Contracts Activity St Marks & Pelago 52 Mill Pt & AU $600 Subi Strand & Linq Motive $m East Arbor North Toccata Concerto Ecco Norwood Unison on 10th $500 Spring View Towers Knightsgate Adagio $400 Lime Civic Redesign $300 $200 $316.37 IN ACCRUED PRE-SALES $100 $- $m Project Com
Slide 34: Development Approvals Received
Agenda Page Title Development Approvals Received 34
Slide 35: Canning Highway Applecross (stage 2 & 3)
Canning Highway Applecross (stage 2 & 3) 910 Canning Highway, Applecross Project: The Canning Hwy developments remaining two stages will consist of approximately 273 one, two, three bed apartments, and 6 ground floor commercial lots that will be developed over three stages. ▪ Status: Development app
Slide 36: Unison on Kennedy
Unison on Kennedy 1 Kennedy Street, Maylands 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: Development approval received ▪ Ownership: 50% JV with landowner ▪ Valu
Slide 37: The Point
The Point 31 Rowe Avenue, Rivervale Project: The Point will consist of 183 one, two and three bedroom apartments plus 9 ground floor commercial units to be constructed on 4,000m2 development site situated at the main entrance to the Springs precinct. ▪ Status: Development approval received ▪ Ownersh
Slide 38: Palmyra West
Palmyra West 43 McGregor Road, Palmyra Project: Palmyra West will consist of 130 one, two and three bedroom apartments. ▪ Status: Development approval received ▪ Ownership: 50% JV with landowner ▪ Value: ~$52 million ▪ Est. Completion: TBC ▪ Sales: Value ($m) Lots Future Future Release* Release* 52
Slide 39: In Planning and Design
Agenda Page Title In Planning and Design 39
Slide 40: Mends Street
1 Mends Street 1 Mends Street, South Perth Project: 1 Mends Street will consist of approximately 335 one, two, three bed apartments plus commercial units. ▪ Status: In Scheme Amendment Process ▪ Ownership: 50% JV with landowner ▪ Value: ~$300 million ▪ Est. Completion: TBC ▪ Sales: Value ($m) Lots F
Slide 41: Mends Street (continuing)
1 Mends Street (continuing) 1 Mends Street, South Perth Proposed scheme amendment – massing diagram 41
Slide 42: Waverley Street
61 Waverley Street 61 Waverley Street, Dianella Project: 61 Waverley Street will consist of approximately 165 one, two and three bedroom apartments. ▪ Status: In revised development application process ▪ Ownership: 50% JV through SPV ▪ Value: ~$66 million ▪ Est. Completion: TBC ▪ Sales: Value ($m) L
Slide 43: Great Eastern Highway
239 Great Eastern Highway 239 Great Eastern Highway, Belmont Project: Entry level residential project currently in redesign. ▪ Status: In planning and design ▪ Ownership: Wholly owned through subsidiary ▪ Value: ~$75m ▪ Est. Completion: TBC ▪ Sales: Value ($m) Lots Future Future Release* Release 75
Slide 44: Homelea Court
2 Homelea Court Cnr Rowe Avenue and Homelea Court, Rivervale Project: 2 Homelea Court will consist of approximately 140 apartments within a 8 level building. The site is comprised of four vacant blocks totaling 3,770 square meters. ▪ Status: In planning and design ▪ Ownership: Wholly owned through s
Slide 45: Lot 1000
Lot 1000 32 Riversdale Road, Rivervale Project: Lot 1000 comprises 4,069 square metres of absolute waterfront land with expansive views of the Swan River, Stadium Precinct, and Perth CBD. Will consist of approximately 150 residential apartments. ▪ Status: In planning and design ▪ Ownership: Wholly o
Slide 46: Lot 888 The Springs
Lot 888 The Springs Lot 888 Rowe Avenue, Rivervale Project: Lot 888 comprises of 2370 square meters of land within The Springs, Rivervale Precinct. For future development. ▪ Status: Office development approval received ▪ Ownership: 50% JV through SPV ▪ Value: ~$40m ▪ Est. Completion: TBC ▪ Sales: Lo
Slide 47: Harmony
Harmony 187 Adelaide Terrace, East Perth Project: Harmony comprises the former ABC Radio Studios heritage building with a GFA of 3,711sqm over 3 levels. The Company is currently exploring the design and construction of a inner city hotel building. ▪ Status: In planning and design ▪ Ownership: 50% JV
Slide 48: Project Pipeline - Summary
Project Pipeline - Summary 350 300 250 200 150 100 50 0 Remaining Stock Value $m Sold Stock Value $m Source: Finbar Group Ltd 48
Slide 49: Overall Sales Activity
Agenda Page Title Overall Sales Activity 49
Slide 50: Residential Sales Contracts Activity
Residential Sales Contracts Activity Aurelia $100 120 ➢ 329 sales worth $169.4m in financial year to date being average $90 Reva of 1.30 sales / $0.67m per day Aire 100 average. $80 Palmyra East $70 Vue Sabina 80 Tower $60 $50 60 $40 40 $30 $20 20 Lots $10 $m $0 0 Project Marketing Launch Date Lots
Slide 51: Conversion Rate
Conversion Rate The number of sales per month against stock available for sale (completed & off-the-plan) 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Source: Finbar Group Ltd 51
Slide 52: First Half of FY18 Highlights
First Half of FY18 Highlights Finbar achieved $118.1 The retail value of completed stock million in sales during the held at the end of FY17 has been Finbar currently holds $312.4 first half of FY18, representing a reduced by 35.8% or $50.6 41.1% increase from first half million in presales. million
Slide 53: Important Notice
Important Notice 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 as ‘estimate’, ‘should’, ‘may’,