for personal use only - asx · 2016. 10. 25. · investment property values & gearing profile...

25 October 2016

FY16 Annual Results Summary & Development Update

1

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Net Profit

$21.2m operating profit.

$8.1m net profit.

68% reduction of NPAT in FY16

after investment property

impairments totall ing $13

mill ion.

20 consecutive years of

profitabil ity.

2

$m

-5

0

5

10

15

20

25

30

35

40

FY95

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

NPAT

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Operating Profits and Revaluations

3

-$20

-$10

$-

$10

$20

$30

$40

$50

FY10 FY11 FY12 FY13 FY14 FY15 FY16

$ M

illion

s

Operating Profit Revaluations

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Earnings Per Share & Dividends

Ful ly franked dividend of $0.07

per share attr ibutable to the

year.

14th consecutive year of

dividends.

4

0

2

4

6

8

10

12

14

16

18

Retained

Final

InterimCents per share

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Cash Position

0

10

20

30

40

50

60

70

80

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

YTD

CASH Strong year end cash position of

$28m.

Well positioned to fund working

capital requirements and equity

contributions for project

commencements.

No debt on residual stock with

settlement cashflow to bolster

working capital for redeployment

into core development activity.

5

$m

Half Year

Full Year

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Source of Earnings FY16

6

Core business of property

development generated 90% of

earnings.

Norwood, Arbor Nor th, Unison

on Tenth and Linq projects were

largest contributors.

6% contribution from rental

income.

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0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

$m

Segment Contributions FY16

7

Rental Property Revaluations Admin PROFIT

Positive Impact

Negative Impact

Profit

Development

ActivityOther

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Corporate Administration Costs

0

50

100

150

200

250

300

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

Net Equity ($m)

Administration Costs

8

0%

1%

2%

3%

4%

5%

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

Admin Costs as % of Net

Equity

Administration costs overhead as

percentage of net equity is 2.9%.

Outsourcing model ensures

company is scalable and

efficient.

Small close team of 19 FTEs

ensures efficient transfer of

information, quick response,

retention of IP, and corporate

agility.

Finbar’s agility remains a major

competitive advantage

$m

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Project Return on Cost & Sales

Return on cost consistently at or

above internal target of 25%.

Return on sales approximately

20%.

Average Return On Completed Development Projects

9

%

25% targeted return on cost

0

5

10

15

20

25

30

35

40

45

Return on Cost Return on Gross Sales

8 year average return on cost 31.2%

8 year average return on gross sales 21.4%

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0

25

50

75

100

125

150

175

200

225

Debt & Pre-sales Coverage

Presales ~Project Revenue Facility Drawn Facility Limit

$128m

RE

PA

ID

RE

PA

ID

RE

PA

ID

RE

PA

ID

RE

PA

IDConcerto Aurelia Motive

Current Project Debt & Coverage

10

$128m in finance facil ities were

repaid in FY16 & FY17 YTD from

settlements on completed

projects.

No debt on residual stock.

Strong presales coverage on

remaining project facil ities.

All debt project specific

No corporate line

No fixed and floating charge over

parent

$m

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Income Producing Investment Property

11

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Investment Property

12

7,586 sqm of office

building

Leased to Downer,

Broadspectrum,

Finbar’s corporate

office, & smaller office

and food tenancies

Wholly owned

FAIRLANES

181 Adelaide Terrace East PerthPELAGO

Sharpe Avenue Karratha

101 apartments & 21

commercial lots

Leased to small

business &

predominantly

corporate residential

tenants

Wholly owned

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Investment Property Leasing

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Fairlanes Office Pelago Commercial Pelago Residential

Leased Vacant

13

Fairlanes 94% leased.

Pelago Commercial 64% leased.

Pelago Residential 69% leased.

Sqm

NLA

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Investment Property Values & Gearing Profile

$0

$20

$40

$60

$80

$100

$120

Fairlanes Pelago TOTAL

Mill ions

Equity

Debt

47.7% LVR

Loan to Value Ratio across

investment property is 47.7%

Facilities with Australian Major

Banks (CBA & NAB).

Value & Gearing on Investment Assets

14

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Development Activity Update

15

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FY16 Progress Highlights

16

Completions

Norwood $34.1m

Arbor North $71.6m

Unison on Tenth $79.6m

Linq $62.6m

Acquisitions & JVs

JV 43-45 McGregor Road,

Palmyra~$108.8m

2 Homelea Court, Rivervale~$82.8m

Approvals

DA Reva~$51.6m

DA Chase~$74.9m

DA Vue Tower~$151.8m

DA The Point~$90m

DA Aire~110m

DA Anchorage~77.3m

DA Sunago~70.8m

Marketing Launches

Aire, West Perth ~$110m

Chase, Belmont~$74.9m

Vue Tower, East Perth~$151.8m

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FY17 Year to Date Progress Highlights

17

Acquisitions & JVs Lot 1000, Rivervale~$65m

910 Canning Hwy, Applecross~$350m

Approvals

Arbor South, Rivervale~$55.2m

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Development Update

Completed Projects with Stock for Sale

18

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Ecco

19

Project: Ecco consists of 90 one, two & three

bedroom apartments plus 8 commercial lots

with an average price of $526,429.

Status: Construction Completed.

Ownership: 50% JV with land owner.

Value: ~$51.6 mill ion.

Completion: FY14

Sales:

262 Lord Street, Perth

Settled

49.1

Under

Contract

0

For Sale

2.5

Value ($m)

Settled

95

Under

Contract

0

For Sale

3

Lots

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Spring View Towers

20

Project: Spring View Towers consists of 188

apartments in two residential towers (8 & 16

levels respectively). $529,255 average price.


Ownership: 50% JV through SPV.


Completion: FY15

Sales:

3 Homelea Court, Rivervale

Settled

98.6

Under

Contract

0.4

For Sale

0.5

Value ($m)

Settled

186

Under

Contract

1

For Sale

1

Lots

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Subi Strand

21

Project: Subi Strand consists of 245 one, two

and three bedroom apartments plus 19 ground

floor commercial lots. $611,742 average price.




Completion: FY15

Sales:

28 Hood Street, Subiaco

Settled

156.5

Under

Contract

2.6

For Sale

2.4

Value ($m)

Settled

257

Under

Contract

3

For Sale

4

Lots

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Norwood

22

Project: Norwood consists of 59 boutique

apartments plus 4 commercial lots in a six level

building. Average price $541,269.




Completion: FY16

Sales:

280 Lord Street, Perth

Settled

30.8

Under

Contract

0.0

For Sale

3.3

Value ($m)

Settled

58

Under

Contract

0

For Sale

5

Lots

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Arbor North

23

Project: Arbor North consists of 154 one and two

bedroom apartments with an average price of

$464,935.




Completion: FY16

Sales:

1 Rowe Avenue, Rivervale

Settled

61.6

Under

Contract

2.9

For Sale

7.1

Value ($m)

Settled

130

Under

Contract

6

For Sale

18

Lots

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Unison on Tenth

24

Project: Unison on Tenth comprises 167 one, two and

three bed apartments plus 2 commercial lots. Average

price $471,006.




Completion: FY16

Sales:

2 Tenth Avenue, Maylands

Settled

57

Under

Contract

2.8

For Sale

19.8

Value ($m)

Settled

121

Under

Contract

6

For Sale

42

Lots

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Linq

25

Project: Linq comprises 112 one and two bedroom apartments

plus 4 commercial lots. The average price is $539,655.


Ownership: Wholly owned through subsidiary.

Value: ~$62.6m.

Completion: FY16

Sales:

269 James Street, Northbridge

Settled

39.5

Under

Contract

4.6

For Sale

18.5

Value ($m)

Settled

75

Under

Contract

8

For Sale

33

Lots

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Development Update

Projects Currently Under Construction

26

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Concerto

27

Project: Concerto will consist of 226 studio, one, two, and

three bedroom apartments plus 1 commercial unit. Once

complete Concerto will be East Perth’s tallest residential

building at 38 stories. Average price $875,771.

Status: Under Construction.



Est. Completion: FY17

Sales:

189 Adelaide Terrace, East Perth

Settled

0

Under

Contract

131

For Sale

67.8

Value ($m)

Settled 0

Under

Contract

150

For Sale

77

Lots

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Motive

28

Project: Motive consists of 143 one and two bedroom

apartments with an average price of $565,035.

Status: Under Construction.




Sales:

172 Railway Parade, West Leederville

Settled

0

Under

Contract

33.0For Sale

47.8

Value ($m)

Settled 0

Under

Contract

65

For Sale

78

Lots

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Aurelia

29

Project: Aurelia will consist of 118 one, two and three bedroom

apartments plus 6 commercial units and 14 office spaces. Average

price $992,029.

Status: Under Construction

Ownership: 50% owned JV with land owner

Value: ~$136.9 mill ion


Sales:

96 Mill Point Road, South Perth

Settled

0

Under

Contract

92.2

For Sale

44.7

Value ($m)

Settled 0

Under

Contract

98

For Sale

40

Lots

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Development Update

Projects Currently Being Marketed for Pre-Sale

30

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Aire West Perth

31

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

$450,820.

Status: Released to market


Value: ~$110 mill ion.


Sales:

647-659 Murray Street, West Perth

* Indicative lots and project value only

Settled 0

Under

Contract

87For Sale

157

Lots

Settled

0

Under

Contract

45.9

For Sale

64.1

Value ($m)

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Civic Heart

32

Project: The Civic Heart will consist of 294 one, two, three bed

apartments plus 19 commercial units that consists of a

supermarket, commercial grade gym, medical suites, child care

facil ities, retail and office spaces. Average price $1.281 mill ion.

Status: Released to market.

Ownership: 50% JV with landowner



Sales:

1 Mends Street, South Perth


Settled

0

Under

Contract

128.2For Sale

272.7

Value ($m)Settled

0

Under

Contract

137

For

Sale

176

Lots

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Sunago

33

Project: Sunago will consist of 163 one and two bedroom

apartments. Approximate average price of $434,356.


Ownership: 50% owned JV through SPV.

Value: ~ $70.8 mill ion.


Sales:

61 Waverly Street, Dianella


Settled

0

Under

Contract

3.6

For Sale

67.2

Value ($m)

Settled 0Under

Contract

8

For Sale

155

Lots

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Chase

34

Project: Chase will consist of 194 apartments plus 2

ground floor commercial lots to be constructed on

5,692m2 development site in Belmont. Approximate

average price of $382,143.





Sales:

239 Great Eastern Highway, Belmont


Settled

0

Under

Contract

9.1

For Sale

65.8

Value ($m)

Settled 0

Under

Contract

24

For Sale

172

Lots

For

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Vue Tower

35

Project: Vue Tower will consist of 247 one, two and 3

bedroom apartments plus 3 commercial units and 2 office

units. Approximate price of $601,984.

Status: Release to market.




Sales:



Settled

0

Under

Contract

13.8

For Sale

138

Value ($m)Settled 0

Under

Contract

25

For Sale

227

Lots

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Development Update

Approvals Received

36

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Unison on Kennedy1 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 recieved


Value: ~$85 mill ion


Sales:

37

Future

Release*

85.0

Value ($m)

Future

Release*

182

Lots


For

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Arbor South

38

Project: Arbor South will consist of

approximately 132 apartments to be constructed

on the balance of 286 unit development site. To

comprise 1 & 2 bedroom apartments, in a 16

storey building.

Status: Development approval received




Sales:

Lots 1002 & 1003 Rowe Avenue, Rivervale


Future

Release*

55.2

Value ($m)

Future

Release*

132

Lots

For

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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.




Est. Completion: FY 21

Sales:

39

Future

Release*

42

Lots

Future

Release*

51.6

Value ($m)

For

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The Point

40

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.





Sales:

31 Rowe Avenue, Rivervale


Future

Release*

90.0

Value ($m)

Future

Release*

192

Lots

For

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Springs Office

41

Project: Springs Office will consist of a 6 level

office building comprising 6,250m2 NLA. 86

residential apartments option.





Pre-Leasing:

Lot 1020 Rowe Avenue Rivervale

6250

0 2000 4000 6000 8000

NLA m2

Leased Available

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Anchorage

42

Project: The proposed redevelopment of 3.15ha

site into approximately 700 apartments plus

ground floor commercial lots over four stages.

Status: Development approval received. Land

purchase conditions under re-negotiation with

Government

Ownership: Proposed to be purchased by

Finbar’s wholly owned subsidiary reaching pre-

sale targets.


Est. Completion: Staged project under

consideration

Lot 452 Sutherland Street, Port Hedland


Stage 1 Artist Impression

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Development Update

In Early Stages of Planning & Design

43

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Palmyra Stage

44

Project: Palmyra will consist of approximately 258 one, two, &

three bed apartments in a low-rise, medium density

development overt two stages. Located on a 2.66 hectare site.

Status: In planning



Est. Completion: Stage 1:FY19 & Stage 2:FY20

Sales:

43-45 McGregor Road, Palmyra


Future

Release*

108.8

Value ($m)

Future

Release*

258

Lots

For

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2 Homelea Court

45

Project: 2 Homelea Court will consist of

approximately 185 apartments within a 10 level

building. The site is comprised of four vacant

blocks totaling 3,770 square metres.

Status: In Planning.




Sales:

Cnr Rowe Avenue and Homelea Court, Rivervale


Future

Release*

82.8

Value ($m)

Future

Release*

185

Lots

For

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Lot 1000

46

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.




Sales:

32 Riversdale Road, Rivervale


Future

Release*

65

Value ($m)

Future

Release*

150

Lots

For

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Canning Hwy

47

Project: Canning Hwy will consist of approximately 440 one,

two, three bed apartments, and ground floor commercial lots

that will be developed over three stages.

Status: In planning.



Est. Completion: Stage 1: FY20, Stage 2: FY21, Stage 3: FY22

Sales:

910 Canning Hwy, Applecross


Future

Release*

350

Value ($m)

Future

Release*

440

Lots

For

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Harmony

48

Project: Exploring short term accommodation, student

accommodation, and hotel concepts.

Status: In planning.




Sales:



Future

Release*

40

Value ($m)

Future

Release*

200

Lots

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Sales Activity

49

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Residential Sale Contracts Activity

FY16 454 sales worth $318.2 in

financial year to date being an

average of 1.24 sales / $0.87m

per day average

93 sales worth $51.83m in

financial year to date being

average of 1.02 sales / $0.57m

per day average.

50

0

20

40

60

80

100

120

Lots $m Linear ($m)

Spring View

Towers

Norwood Toccata

Concerto

Arbor North

Linq

Subi

Strand

Project Marketing

Launch Date

52 Mill Pt

Unison on

10th

Motive

Aurelia

Civic Heart

Aire

Chase

Vue

Tower

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Accrued Presales Total

51

$-

$100

$200

$300

$400

$500

$600

Million

s

$m

LimeAdagio

Knightsgate

St Marks &

Pelago East

Ecco

52 Mill Pt &

AU

Spring View

Towers

Subi Strand

& Toccata

Norwood

Project Completions &

Settlements

Arbor

NorthUnison on

Tenth

Linq

IN ACCRUED PRE-SALES

$468.1m

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Proportion of Finbar FIRB Sales & Foreign Investor Surcharge

52

VICTORIA:

Additional Duty 7%

Absentee Owner Land tax Surcharge 0.5%

NEW SOUTH WALES:

Additional Duty 4%


QUEENSLAND:

Additional Duty 4%


WESTERN AUSTRALIA:

Additional Duty Nil

Absentee Owner Land tax Surcharge Nil

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Proportion of Repeat Buyers

53

Finbar Loyalty Club

Opened October 201522% increase in repeat buyers in FY16F

or p

erso

nal u

se o

nly

Completed Stock Remaining (Debt Free)

54

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100M

illion

s

Linq

Unison on

TenthArbor North

Norwood

Project

Completion

$63m

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Off-the-Plan Sales v Completed Sales

55

$-

$10

$20

$30

$40

$50

$60

$70M

illion

s

Completed Stock Off-The-Plan

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Pipeline Estimated Completion Summary

56

Note: Anchorage, Port Hedland not

included in this summary

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Cumulative Units Sold

57

Year

Units

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

96 9798 99 00 01 03 04 05 07 08 09 1011 12 13 14 15 16 17 18 19 20 21 22 23

4935 units developed to date.

Anticipating to develop and settle

an additional 3676 over next

seven years.

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Important Notice

58

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’, ‘forecast’, ‘anticipates’,

‘expects’, ‘plans’, ‘approximately’, ‘circa’, or similar expressions. Finbar’s actual results, performance,

approvals, project composition, values, sales, or achievements could be significantly different from the

results or objectives expressed in, anticipated or implied by, those forward- looking statements. Readers

are cautioned not to place undue reliance on these forward- looking statements which refer to

circumstances, estimates, and projections only as at the date of this release and which are subjected to

changes as a result of changing market conditions, construction timelines, amended project planning,

and revisions to company strategies.

The information contained in this presentation has been obtained from sources believed to be reliable. To

the maximum extent permitted by law Finbar, its offices, employees, agents and advisors do not make

any warranty express or implied, as the accuracy, reliabil ity or completeness of the information in this

Presentation or that the information is suitable for your intended use and disclaim all responsibil ity and

liabil ity.

This Presentation is not an offer or an invitation to acquire Finbar securities and is not a product

disclosure document or a prospectus under Australia law. It is for information purposes only.For

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for personal use only - asx · 2016. 10. 25. · investment property values & gearing profile...

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