Dexus Convenience Retail REIT · ASX:DXC
Dexus Convenience Retail REIT — APN Property Group — H1 2015 Earnings Presentation
34 slides from Dexus Convenience Retail REIT's earnings presentation, Feb 23, 2015
Slide 1: December 2014 Half Year Results Presentation
DECEMBER 2014 HALF YEAR RESULTS PRESENTATION 23 FEBRUARY 2015
Slide 2: Agenda
AGENDA Results summary Business highlights Strategy and outlook Appendices Chris Aylward Tim Slattery Michael Groth Executive Chairman Executive Director Chief Financial Officer 2
Slide 3: Results Summary
RESULTS SUMMARY APN | Property Group
Slide 4: HY2015 Highlights
HY2015 Highlights Financial Results Statutory profit after tax of $8.5 million up 101% Operating earnings1 before tax of 2.55 cents per share Continuing improvement of ‘quality’ of earnings – funds management fees $5.9 million up 20% Australian Red Cross Blood Service Facility, Brisbane QLD
Slide 5: HY2015 Highlights – continued
HY2015 Highlights – continued Strong operational results Strong results across the business Coburg North – new syndicate successfully launched Auburn – redevelopment well progressed and sale announced1 8 Clunies Ross Crt, Brisbane Technology Park QLD Earnings and dividend guidance increased
Slide 6: Income statement Highlights
Income statement Dec Dec Highlights $000s 2014 2013 Change Strong growth in recurring income – now 72% Funds management fees 5,861 4,885 ▲ 20% Performance & transaction fees 3,671 6,154 ▼ 40% Co-investment income (ex mark to market Asset & project management fees 905 647 ▲ 40% movements) $1.5 mi
Slide 7: Balance sheet
Balance sheet Cash of $20.0 million $000s Dec 2014 Jun 2014 Change Cash 20,0121 6,0341 ▲ 232% – Cash held in trust for underlying funds managed by the Group of $8.9 million Co-investments 48,555 46,077 ▲ 5% (June 2014: $0.2 million) Other assets 13,979 11,519 ▲ 21% Intangible assets 4,073 4,079 -
Slide 8: Funds under management
Funds under management1 Continuing investment performance has delivered solid FUM growth over the period $109m $2,128m $2,023m ($36m) $17m $15m $1,787m Net FUM increase Portfolio and market Casey Specialist revaluations across movements across 541 St Kilda Road Centre completion Securities Securitie
Slide 9: Business Highlights
BUSINESS HIGHLIGHTS APN | Property Group
Slide 10: Group Overview
Group Overview $1,151 million $341 million Funds Under Management Funds Under Management 6 Securities Healthcare 1 Funds Fund $231 million $405 million Funds Under Management Funds Under Management Direct Industria 4 1 Funds1 Fund 1 Excludes new funds launched post 31 December 2014 (APN Coburg North
Slide 11: Direct Funds
Direct Direct Funds Highlights Exchanged conditional contract for sale of The Marketplace, Auburn with forecast investor gross profit of >50% 150 Collins St completed (APN DF2) Completed sale of 541 St Kilda Road – 29% total return Successfully launched APN Coburg North Retail Fund Sale fo
Slide 12: APN Coburg North Retail Fund
Direct APN Coburg North Retail Fund New direct unlisted property fund Recently built (2014) shopping centre anchored by Investment type Single asset, closed-end unlisted property fund Woolworths supermarket Investment objective Stable income and capital growth Property Coburg Hill Shopping Centr
Slide 13: Real Estate Securities
Securities Real Estate Securities FUM at $1,151 million, increase of 10.4% since June 2014 APN AREIT Fund continuing strong net inflows Awarded Money magazine’s 2015 Best of the Best Award $25.0m $22.5m AREIT Fund average net inflows of ~$20 million per month $20.0m Consistent returns and lo
Slide 14: Healthcare
Healthcare Healthcare Highlights Total return of 18.7% (6 months), outperforming the S&P/ASX 300 Property Trust Accumulation Index return of 12.7% Completed Casey Specialist Centre and advanced growth projects including Frankston Private and Epworth Freemasons Cancer Centre Multiple industry r
Slide 15: Industria
Industria Industria Highlights Half year distribution of 8.36 cents per Security delivered WALE increased over the period to 5.1 years Key metrics NTA increased to $2.01 Market Capitalisation1 $250 million Included in the S&P/ASX 300 index Total Funds Under Management $405 million 16,400+
Slide 16: Strategy and Outlook
STRATEGY AND OUTLOOK APN | Property Group
Slide 17: Strategy and implementation
Strategy and implementation PROPERTY FOR INCOME Philosophy Approach Investment performance Outstanding service Focus on activities in which Specialist expertise Strategy Track record APN has a competitive Governance advantage Co-investment ‘How we are seeking to do it’ Commercial objective:
Slide 18: Attractive Industry Dynamics and Market Position
Attractive Industry Dynamics and Market Position Projected superannuation assets to 2033 Australian superannuation assets $1.87 trillion1; 1 forecast to grow to $3 trillion by 20202 Income-orientated investment products are 2 attractive assets for superannuation investors APN’s ‘property for income’
Slide 19: Outlook
Outlook Low growth, low inflation environment Interest rate cuts and AUD decline will assist Economic growth (in part) environment Structural changes (wages etc) likely necessary for major improvements 34 Australis Dr, Derrimut VIC Continue to be highly liquid with significant competition fo
Slide 20: Outlook
Outlook Focus on longer lease term assets or structured (eg development) opportunities Shorter lease terms - incentive levels and cash flow risk Investment on expiry strategy Well leased commercial property remains an attractive investment proposition in a low growth, low inflation Epworth Fre
Slide 21: Appendix A: Financial Information
APPENDIX A FINANCIAL INFORMATION 21
Slide 22: Financial Performance
Financial Performance Income Statement Dec 2014 Dec 2013 $’000s $’000s Fund management fees 5,861 4,885 Performance & transaction fees 3,671 6,154 Asset & project management fees 905 647 Registry, accounting & other fees 1,165 1,252 Total Net Funds Management Income 11,602 12,938 Co-investment incom
Slide 23: Revenue analysis
Revenue analysis Frequency of ‘non-recurring’ income (5 of 12 funds have ability to earn ‘non-recurring’ income)1 13.2 Average FY2007 - FY2014 = $4.5 million 11.5 6.7 1.1 0.6 3.7 0.0 2.0 2.1 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015YTD Continuing improvement in ‘quality’ of earn
Slide 24: Financial Performance – Operating Cashflow
Financial Performance Operating Cashflow $’000s Dec 2014 Dec 2013 Cashflow Reconciliation 12,000 $000s $000s Statutory profit after tax 8,510 4,227 1,228 (4,667) 10,000 Add/(deduct): 8,510 Non-controlling interests 1,228 1,170 8,000 Mark to market revaluations (4,667) (1,188) 6,000 311 (966) Non-cas
Slide 25: Operating Profit Before Tax Reconciliation
Operating Profit Before Tax Reconciliation 7,000 976 (2,483) 6,000 472 5,381 5,168 1,016 61 5,000 258 (87) 4,000 3,000 2,000 1,000 - Operating profit Fund Performance & Asset & project Registry & other Co-investment Overheads and MI share of Operating profit before tax at Dec management transaction
Slide 26: Balance sheet
Balance sheet $’000s Dec 2014 Jun 2014 Cash and cash equivalents 20,0121 6,0341 Trade and other receivables 6,951 6,165 Co-investments 48,555 46,077 Other assets 1,492 366 Total Current Assets 77,010 58,642 Intangible assets 4,073 4,079 Deferred tax assets 5,173 4,643 Other assets 363 345 Total Non-
Slide 27: Co-investments ($000s)
Co-investments ($000s) $60.0m $50.0m $1.4m $1.1m $0.9m $0.1m $12.5m $0.1m $40.0m $32.5m $30.0m $48.6m $20.0m $10.0m $0.0m Generation Industria REIT APN AREIT Fund APN Asian REIT APN Asia Pacific APN Newmark APN Total co- 1 Healthcare REIT Fund REIT Fund Devevelopment Auburn Property investments Fund
Slide 28: Appendix B: Funds Under Management Summary
APPENDIX B FUNDS UNDER MANAGEMENT SUMMARY 28
Slide 29: Funds Under Management Summary
Funds Under Management1 Summary Fee Basis Co- Funds Under Funds Sector Investors investment Management Mgmt Perf Other Stake APN AREIT Fund Property Securities Retail & Institutional $785m − APN Property for Income Fund Property Securities Retail & Institutional $204m − APN Property for Income F
Slide 30: Appendix C: Company Overview
APPENDIX C COMPANY OVERVIEW 30
Slide 31: Company overview
Company overview Share Price and Volume (three years) Volume (RHS) 1.0m $0.35 0.9m Price S&P/ASX 300 Index (Rebased) 0.8m $0.30 0.7m 0.6m $0.25 0.5m 0.4m $0.20 0.3m $0.15 0.2m 0.1m $0.10 0.0m Dec 2011 Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013 Jun 2013 Sep 2013 Dec 2013 Mar 2014 Jun 2014 Sep 2014
Slide 32: History
History Australian Property APN’s first direct property Network Pty Ltd APN Property for Income fund, APN Retirement Coburg North commenced Fund No. 2 launched. APN launches the APN AREIT Fund Properties Fund established Retail Fund operations with an APN AREIT Fund, a exceeds $300m property securit
Slide 33: Disclaimer
Disclaimer The financial information included in this presentation is based on APN Property Group’s financial statements and results that have been prepared in accordance with the Corporations Act 2001 (Cth), applicable Accounting Standards and Interpretations and in compliance with other applicable
Slide 34: Contact details
Contact details Chris Aylward Tim Slattery Michael Groth Executive Chairman Executive Director Chief Financial Officer Ph: (03) 8656 1000 Ph: (03) 8656 1031 Ph: (03) 8656 1026 [email protected] [email protected] [email protected] APN Property Group Limited Level 30,