Finbar Group Limited · ASX:FRI
Finbar — Shareholder Meeting (October 2024)
51 slides from Finbar's shareholder meeting presentation, Oct 16, 2024
Slide 1: 2024 Annual General Meeting
16 OCTOBER 2024 2024 ANNUAL ft GENERAL MEETING .. For pqisam H &
Slide 2: FY24 Results Summary
For personal use only FY24 RESULTS SUMMARY
Slide 3: Net Profit
NET PROFIT ➢ $13.6m increase in total comprehensive income to $16.4m use only ➢ Completion of Civic Heart in June 2024 had the largest impact on earnings for FY24. ➢ 28th consecutive year of profitability 40 35 For personal 30 25 20 $M 15 10 5 0 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05
Slide 4: Cash
CASH $220 For personal use only $200 $180 ➢ FY end cash position of $220.1m. $160 $140 ➢ NOTE: Civic Heart bank bill construction facility did not mature $120 $M until 2 July, as such $173.5m cash was used to repay at this time $100 (leaving Circa $46.6m). $80 $60 $40 $20 $0 FY07 FY08 FY09 FY10 FY11
Slide 5: Earnings Per Share & Dividends
Earnings Per Share & Dividends DIVIDENDS For personal use only ➢ Fully franked dividend of $0.08 per share paid on 10 October 10 ➢ 128.5c fully franked per share paid since inception as property developer 8 Cents per share 6 4 2 0 Interim Final 9
Slide 6: Sources of Income
Sources of Income JUN21 CONTRIBUTION TO TURNOVER – FY24 Civic Heart 92% 90% For personal use only Developments Source of Source of ➢ Core business of property All Earnings Source of Development Income development contributed to 90% of All AllEarnings Income turnover ➢ Civic Heart & AT238 were the la
Slide 7: Segment Contributions FY24
SEGMENT CONTRIBUTIONS FY24 Development Finbar to Finbar Interest Activity Rent Sales Rental Property Income For personal use only Revaluations Admin Other Profit 35 30 25 20 $M 15 10 5 0 Positive Impact Negative Impact 11
Slide 8: Current Project Debt & Coverage
Current Project Debt & Coverage PROJECT CONSTRUCTION DEBT Debt & Pre-sales Coverage For personal use only $300 ➢ $173.5m construction facility for Civic $250 Heart repaid on 2 July 2024 ➢ The Point commenced settlements on 2nd $200 October 2024 resulting in $41.4M of the $M $173.5M REPAID bank facil
Slide 9: Market Activity Update
MARKET ACTIVITY UPDATE For personal use only
Slide 10: Total Number of Sales Per Month
TOTAL NUMBER OF SALES PER MONTH ➢ Generally improved sales activity in FY24 notwithstanding continued firming of asking prices. For personal use only 100 ➢ Sale of completed stock (orange) increased 90 90 as a result of completion of Civic Heart 80 77 74 ➢ Large spike in May sales due to launch of B
Slide 11: Total Off-the-Plan Pre-Sales Value
For personal use only Millions 15 $- $100 $200 $300 $400 $500 $600 $700 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 NORWOOD May-16 Jul-16 LINQ ARBOR NORTH Sep-16 SUBI STRAND & TOCCATA Nov-16 Jan-17 UNISON ON TENTH Mar-17 May-17 MOTIVE Jul-17 Sep-17 Nov-17 CONCERTO Jan-18 Mar-18 TOTAL OFF
Slide 12: Completed Stock Sell Down
COMPLETED STOCK SELL DOWN ➢ Civic Heart and The Point have added to completed stock and we are averaging $8 million per month in completed For personal use only stock sales (last 12 months, $18m per month avg last 3 COMPLETION COMPLETION months) COMPLETION COMPLETION $200 COMPLETION Millions COMPLET
Slide 13: Investor Sales v Owner Occupier per Calendar Quarter
FINBAR PROJECTS - INVESTOR SALES V OWNER OCCUPIER PER CALENDAR QTR ➢ Perth rental market strength and current product mix of new projects (Bel-Air) use only supporting 50% of sales to investors 160 90% 140 80% 70% 120 For personal 60% 100 Units 50% 80 40% 60 30% 40 20% 20 10% 0 0% Q1 Q2 Q3 Q4 Q1 Q2
Slide 14: Yearly FIRB Sales: Units Sold to Foreign Buyers
YEARLY FIRB SALES UNITS SOLD TO FOREIGN BUYERS 100 For personal use only 90 80 ➢ 7% Foreign Buyer Surcharge Tax 70 introduced in January 2019 resulting 60 in less foreign sales activity 50 Units 40 30 20 10 34 54 34 89 77 44 65 86 21 27 20 39 37 37 0 CALENDER YEAR 2011 2012 2013 2014 2015 2016 2017
Slide 15: Investment Property Update
INVESTMENT PROPERTY UPDATE For personal use only
Slide 16: Investment Properties
Investment Properties INVESTMENT PROPERTY For personal use only FAIRLANES PELAGO 181 Adelaide Terrace East Perth 23 & 26 Sharpe Avenue Karratha ➢ 7,584 sqm office building ➢ 98 apartments & 18 commercial lots ➢ Leased to Ventia, FTP Solutions, Finbar’s corporate office, ➢ Primarily leased to corpora
Slide 17: Investment Property Values & Gearing Profile
Investment Property Values & Gearing Profile INVESTMENT PROPERTY – BOOK VALUE & DEBT For personal use only $120 ➢ $1.5 million book value impairment at Fairlanes in FY24 Equity $100 ➢ $4.9 million book value increase at Debt Pelago in FY24 $80 ➢ $104.7 million in current book value $M for Pelago & F
Slide 18: Investment Property – Occupancy Levels
INVESTMENT PROPERTY – OCCUPANCY LEVELS 100 For personal use only 7,000 90 ➢ Fairlanes 56% leased (two vacant floors) 80 6,000 ➢ Pelago Commercial 66% leased. 70 ➢ Pelago Residential 89% leased. Three years of 5,000 Commercial Sqm NLA 60 Residential Apartments continued rent increases have now stabil
Slide 19: Pelago Residential – Average Price Per Week
PELAGO RESIDENTIAL – AVERAGE PRICE PER WEEK For personal use only $1,833 ➢ Solid rental growth has now $1,900 peaked. $1,692 $1,700 ➢ Remains best apartment asset in Karratha and rental stock in Karratha $1,500 $1,414 ➢ Very difficult to replicate with regional construction cost and $1,300 limited c
Slide 20: Project Update
PROJECT UPDATE For personal use only Effective as at 18/10/2021 24 24
Slide 21: Development Activity Update: FY24 Completed Projects
Development Activity Update FY24 COMPLETED PROJECTS For personal use only 25
Slide 22: AT238 Adelaide Terrace, Perth
AT238 238 ADELAIDE TERRACE, PERTH Project: AT238 consists of 119 one, two, and For personal use only three bedroom apartments plus 2 ground floor commercial on 1,697 Sqm land over 31 levels. ▪ Status: Completed ▪ Ownership: 50% JV through SPV ▪ Value: ~$100.4 million ▪ Completion: FY23 ▪ Average pri
Slide 23: AT238 Adelaide Terrace Perth
AT238 238 ADELAIDE TERRACE PERTH For personal use only 27
Slide 24: Civic Heart, Mends Street, South Perth
CIVIC HEART Concerto 1 MENDS STREET, SOUTH PERTH Project: Civic Heart consists of 308 one, two, and three bed apartments, plus 26 For personal use only commercial lots. ▪ Status: Completed ▪ Finbar’s share of project profit: 52.5% ▪ Value: ~$448.1 million ▪ Completion: FY24 ▪ Average price: $1,204,9
Slide 25: Civic Heart Exterior
CIVIC HEART EXTERIOR For personal use only 29 29
Slide 26: Civic Heart Amenities
CIVIC HEART AMENITIES For personal use only 30 30
Slide 27: Civic Heart Amenities
CIVIC HEART AMENITIES For personal use only 31 31
Slide 28: Civic Heart Display Apartment
CIVIC HEART DISPLAY APARTMENT For personal use only 32 32
Slide 29: Civic Heart UDIA 2024 Awards for Excellence Winner
CIVIC HEART UDIA 2024 AWARDS FOR EXCELLENCE WINNER URBAN RENEWAL & APARTMENTS (HIGH RISE) For personal use only This achievement is a testament to the transformation Civic Heart has made to a former fragmented suburban block, turning it into a vibrant destination comprising 308 apartments across two
Slide 30: The Point, Rowe Avenue, Rivervale
THE POINT Concerto 31 ROWE AVENUE, RIVERVALE Project: The Point consists of 167 one, two, For personal use only and three bedroom apartments plus 9 ground floor commercial units. ▪ Status: Completed ▪ Finbar’s share of project profit : 65% ▪ Value: ~$111.9 million ▪ Completion: FY25 ▪ Average price:
Slide 31: The Point Newly Completed
THE POINT Concerto NEWLY COMPLETED For personal use only 35 35
Slide 32: The Point Display Apartment
THE POINT Concerto DISPLAY APARTMENT For personal use only 36 36
Slide 33: Development Activity Update: Projects Under Construction
Development Activity Update PROJECTS UNDER CONSTRUCTION For personal use only 37
Slide 34: Aurora, Kintail Road, Applecross
AURORA Concerto 3 KINTAIL ROAD, APPLECROSS Project: Aurora will consist of 118 one, two, For personal use only and three bed apartments plus 3 ground floor commercial lots. ▪ Status: Under Construction – Completion Iminent ▪ Finbar’s share of project profit : 50% ▪ Value: ~$158.3 million ▪ Est. Comp
Slide 35: Aurora Construction Progress
AURORA CONSTRUCTION PROGRESS For personal use only Level 19 of 25 Aurora 39
Slide 36: Aurora Display Apartment
AURORA Concerto DISPLAY APARTMENT For personal use only 40 40
Slide 37: Garden Towers, East Perth
Concerto GARDEN TOWERS CNR PLAIN STREET & HAY STREET, EAST PERTH Project: Garden Towers will consist of 331 For personal use only one, two, and three bed apartments, and 13 commercial lots. ▪ Status: Under Construction ▪ Ownership: 50% JV through SPV ▪ Value: ~$270.4 million ▪ Est. Completion: FY26
Slide 38: Garden Towers Construction Progress
Concerto GARDEN TOWERS CONSTRUCTION PROGRESS For personal use only 42 42
Slide 39: Projects Marketed Off-the-Plan (Construction Not Commenced)
PROJECTS MARKETED OFF-THE-PLAN (CONSTRUCTION NOT COMMENCED) For personal use only 43 43
Slide 40: Bel-Air Apartments, Great Eastern Highway, Belmont
Concerto BEL-AIR APARTMENTS 239 GREAT EASTERN HIGHWAY, BELMONT Project: Bel-Air will consist of 194 one and two For personal use only bedroom apartments, plus two commercial lots. ▪ Status: Pre-Sales ▪ Ownership: Wholly owned through subsidiary ▪ Value: ~$113.1 million ▪ Est. Commencement: FY26 ▪ Av
Slide 41: Development Approval Received
DEVELOPMENT APPROVAL RECEIVED For personal use only 45 45
Slide 42: Romeo (Stage 3 Applecross), Canning Highway
ROMEO (STAGEConcerto 3 APPLECROSS) 912 CANNING HIGHWAY, APPLECROSS Project: Stage 3 will consist of approximately For personal use only 152 one, two, and three bed apartments, plus STAGE 3 3 ground floor commercial lots. ▪ Status: Development Approval Received ▪ Finbar’s share of project profit : 50
Slide 43: Palmyra West, McGregor Road
PALMYRA WESTConcerto 45 MCGREGOR ROAD PALMYRA Project: Palmyra West existing approval is for For personal use only 130 one, two, and three bedroom apartments. ▪ Status: Development Approval Received ▪ Finbar’s share of project profit : 50% ▪ Value: ~$80 million ▪ Est. Completion: TBC 47 47
Slide 44: Lot 1000, Riversdale Road, Rivervale
LOT 1000 Concerto 32 RIVERSDALE ROAD, RIVERVALE Project: Lot 1000 comprises 4,069 square metres of For personal use only absolute waterfront land with expansive views of the Swan River, Stadium Precinct, and Perth CBD. 143 residential apartments approved. ▪ Status: Development approval received ▪ Fi
Slide 45: Land Bank
LAND BANK For personal use only Effective as at 18/10/2021 49 49
Slide 46: Lot 888, Rowe Avenue, Rivervale
LOT 888 Concerto LOT 888 ROWE AVENUE, RIVERVALE Project: Lot 888 comprises of 2370 square metres of land For personal use only within The Springs, Rivervale Precinct. ▪ Status: Development Approval received for 6,250m2 NLA commercial office building. ▪ Finbar’s share of project profit : 50% ▪ Value:
Slide 47: 2 Homelea Court, Rivervale
Concerto 2 HOMELEA COURT CNR ROWE AVENUE AND HOMELEA COURT, RIVERVALE Project: 2 Homelea Court will consist of approximately For personal use only 171 apartments on a 3,770 sqm site. ▪ Status: Development Application Lodged ▪ Ownership: Wholly owned through subsidiary ▪ Value: ~$95 million ▪ Est. Co
Slide 48: ABC Building (Harmony), Adelaide Terrace
Concerto ABC BUILDING (HARMONY) 187 ADELAIDE TERRACE, EAST PERTH Project: Harmony comprises the former ABC Radio Studios For personal use only heritage building with a GFA of 3,711sqm over 3 levels. ▪ Status: No current use. Proposed new Town Planning Scheme will result in residential use with likel
Slide 49: Current Pipeline
CURRENT PIPELINE ~$890m in residual pipeline For personal use only 500 $428m under construction 450 400 350 $113m Next Commencement 300 250 $m 200 150 100 50 0 AT238 Civic Heart The Point Aurora Garden Bel-Air Romeo Palmyra Harmony 2 Homelea Lot 1000 Lot 888 Towers West (Former Court Springs Springs
Slide 50: Apartments Developed to Date
APARTMENTS DEVELOPED TO DATE For personal use only 465 797 9000 8000 7286 ➢ 7,286 completed apartments to date 7000 6000 ➢ Additional 1,262 apartments in current pipeline 5000 ➢ Finbar is responsible for developing 0.83% of all private dwellings in Greater Perth or 0.63% of all Units 4000 housing in
Slide 51: 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 as ‘estima