Dexus Convenience Retail Reit · ASX:DXC
Dexus Convenience Retail Reit — HY24 Earnings Presentation
27 slides from Dexus Convenience Retail Reit's earnings presentation, Feb 5, 2024
Slide 1: Dexus Convenience Retail REIT 2024 half year results ASX release
Dexus Convenience Retail REIT (ASX:DXC) ASX release 5 February 2024 2024 half year results presentation and property synopsis Dexus Convenience Retail REIT (ASX: DXC) releases its 2024 half year results presentation. An investor conference call will be webcast today at 10.00am on www.dexus.com/inves
Slide 2: Half year results
Dexus Asset Management Limited ACN 080 674 479 AFSL 237 500 as responsible entity for Dexus Convenience Retail REIT Half year results 5 February 2024 219 Westphalen Drive, Warrego QLD
Slide 3: Acknowledgement of Country
Acknowledgement of Country Dexus Convenience Retail REIT acknowledges the Traditional Custodians of the lands on which our business and assets operate, and recognises their ongoing contribution to land, waters and community. We pay our respects to First Nations Elders past and present. Artwork: Chan
Slide 4: Agenda
01 Introduction and highlights Page 4 02 Financial overview Agenda Page 10 03 Summary Page 16 04 Appendices Page 18 3 | 2024 Half Year Results
Slide 5: Introduction and highlights
01 Introduction and highlights 4 | 2024 Half Year Results 49 Great Eastern Highway, Bellevue WA
Slide 6: DXC investment proposition
DXC investment proposition Providing investors with defensive income with embedded rental growth Generate defensive income Maintain prudent Active approach to Aligned manager with deep with embedded rental growth capital structure portfolio optimisation real asset capability − +3.5% average rent rev
Slide 7: HY24 highlights
HY24 highlights Resilient portfolio supporting organic property income growth Updated FY24 − Updated FY24 guidance to FFO and distributions of 20.8 – 21.1 cents per security1, guidance range reflecting an increase in the lower end of the range − +3.5% average rent review achieved Generate − +2.8% li
Slide 8: Delivering defensive income with embedded rental growth
Delivering defensive income with embedded rental growth Portfolio attributes Income resilience Growth Weighted to high-quality metro and highway sites No major lease expiries until 2030+ Embedded property income growth (% by value) (% by income) (% by income) 89% 15% Fixed review (~3.1%) CPI linked
Slide 9: Tenants meaningfully investing in their sites for the long term
Tenants meaningfully investing in their sites for the long term DXC benefits from a diverse tenant base Top tenants continue to reinvest in their sites % portfolio Chevron Tenant income − Material investment into re-branding national network from Chevron 34% Puma to Caltex − Net increase in national
Slide 10: Sustainability progress
Sustainability progress DXC initiatives Aligned to Dexus group sustainability strategy 100% renewable Maintained carbon neutral electricity sourced position across DXC for controlled assets controlled and managed operations for FY23 as part of the Dexus group submission1 Embedded initiatives Support
Slide 11: Financial overview
02 Financial overview 10 | 2024 Half Year Results Cnr Thompson Road & Victoria Street, Geelong North VIC
Slide 12: HY24 financial result
HY24 financial result Solid property income growth partly offsetting impact of higher interest rates Profit & loss HY24 HY23 Change Like-for-like income growth of 2.8% offset by the impact of 11 divestments totalling Property FFO ($m) 22.7 23.9 (5.0)% $52.3 million settled in FY23 and HY24 Managemen
Slide 13: Balance sheet and capital management
Balance sheet and capital management Active management to enhance redeployment optionality Key metrics 31 Dec 2023 30 Jun 2023 Gearing2 32.6% 31.8%3 Cost of debt4 4.0% 3.7% Executed $30 million Anticipate FY24 Continuing to explore Average maturity of debt 3.8 years 4.2 years5 facility cancellation
Slide 14: Glass House Mountains fund-through redevelopment
Glass House Mountains fund-through redevelopment Significantly enhancing the convenience retail offering Site Est. project Est. yield on Site Redevelopment of a large dual highway site into two modern service stations area costs cost with an extensive convenience retail and quick service restaurant
Slide 15: Portfolio valuations
Portfolio valuations High income certainty continues to support valuation outcomes Property portfolio valuation summary – 31 Dec 2023 Portfolio cap rate expansion of 20 bps reflecting broader 31 Dec 2023 Cap rate interest rate environment Total reval Total reval Cap rate Portfolio Properties book va
Slide 16: Transaction market
Transaction market Liquid transaction market allowing for asset price discovery Transactions volumes and average yield Number of transactions Fuel & convenience property transaction volumes in CY23 120 6.1% were down however remained robust despite the 108 104 6.0% challenging macroeconomic environm
Slide 17: Summary
03 Summary 16 | 2024 Half Year Results 226-228 Bridge Road, Pooraka SA
Slide 18: Well placed to deliver defensive and growing property income
172 New England Highway, Rutherford NSW Well placed to deliver defensive and growing property income Well placed to deliver resilient and growing property income underpinned by long leases backed by strong tenant covenants Focus on preserving balance sheet strength via continuing to explore addition
Slide 19: Appendices
04 Appendices 18 | 2024 Half Year Results 473 North East Road, Hillcrest SA
Slide 20: Transactions
Transactions $18.6 million of transactions settled in HY24 at 2.9% average discount to book value Property Property type Settlement Southbound 656 Bruce Highway, Woree, QLD Metro 18 August 2023 1182 Chapman Road, Glenfield, WA Regional 31 August 2023 323 North East Roast, Hampstead Gardens, SA Metro
Slide 21: Network overview
Network overview Valuable landbank with national presence 101 67 properties specialty retail tenancies Queensland 61% 668,000sqm 2.9m $458m 61 total site area people within 3km 23% Western Australia exposure to total radius1 South QLD motor vehicle $63m 8% 10 fleet daily2 Australia $103m 14% 17 35%
Slide 22: Market dynamics
Market dynamics Fuel sales volumes remain solid Transactions volumes and average yield Sales volumes of petroleum products1 National service stations transaction numbers Thousands Number of transactions 50 120 6.1% 108 104 6.0% 45 93 100 94 5.9% 40 85 5.8% 35 80 5.7% 30 5.6% 25 60 53 5.5% 20 5.4% 40
Slide 23: Consolidated profit & loss statement
Consolidated profit & loss statement $’000 HY24 HY23 Net property income1 24,440 26,815 Interest income 37 22 Total revenue 24,477 26,837 Management fees (2,509) (2,725) Finance costs (5,923) (5,459) Corporate costs (542) (547) Total expenses (8,974) (8,731) Net operating income 15,503 18,106 Fair v
Slide 24: FFO reconciliation
FFO reconciliation $’000 HY24 HY23 Statutory net profit / (loss) after tax for the period (1,719) 3,101 Adjusted for: Net fair value (gain) / loss on investment properties 12,647 14,892 Net fair value (gain) / loss on derivatives 4,575 113 Incentive amortisation and rent straight-line (1,820) (2,514
Slide 25: Consolidated balance sheet
Consolidated balance sheet $’000 31 Dec 2023 30 Jun 2023 Cash and cash equivalents 4,920 5,454 Investment properties 753,402 781,220 Other assets 10,716 16,189 Total assets 769,038 802,863 Borrowings (248,152) (263,420) Provisions (7,457) (9,796) Other liabilities (13,023) (13,264) Total liabilities
Slide 26: Important information
Important information This presentation (“Material”) has been prepared by Dexus Asset Management Limited (ACN 080 674 479, AFSL No. 237500) ("DXAM") as the responsible entity of Convenience Retail REIT No.1 (ARSN 101 227 614), Convenience Retail REIT No.2 (ARSN 619 527 829) and Convenience Retail RE
Slide 27: Dexus
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