Dexus Convenience Retail REIT · ASX:DXC
Dexus Convenience Retail REIT — APN Property Group — FY2013 Earnings Presentation
32 slides from Dexus Convenience Retail REIT's earnings presentation, Aug 29, 2013
Slide 1: Full Year Results Presentation
FULL YEAR RESULTS PRESENTATION 30 June 2013
Slide 2: Contents
CONTENTS FY13 highlights Financial results summary Funds under management Business highlights and new initiatives Strategy, priorities and outlook Appendices 2
Slide 3: FY13 Highlights
FY13 HIGHLIGHTS $1.7 billion FUM $2.1 million FY13 statutory profit after tax – in line with FY12 ($2.2 million) 1.25 cents per share dividend Property for Income funds liquidity solution and Europe exit implemented 6.7% increase in FUM since December 20121 Successfully transitioning to
Slide 4: Financial results summary
Financial results summary Profit and loss Financial highlights ($000) 30 June 13 30 June 12 Statutory profit after tax & MI of $2.1 million Revenue total 18,537 19,612 Decrease in EBITDA reflects FY12 pre PFIFs EBITDA2 2,120 3,746 liquidity solution and Europe exit Statutory profit after tax 2,0
Slide 5: Funds under management (ex-Europe)
Funds under management (ex-Europe) (A$m)1 Healthcare Securities Direct Funds +8.6% 934 +6.8% 860 +12.9% 381 407 209 236 Dec 2012 Jun 2013 Dec 2012 Jun 2013 Dec 2012 Jun 2013 FUM across the group increased 6.7%1 over the half – with good growth across all three divisions 1 FUM increased 8.8% Ex Europ
Slide 6: Business Highlights and New Initiatives
BUSINESS HIGHLIGHTS AND NEW INITIATIVES 6
Slide 7: Generation Healthcare REIT
Generation Healthcare REIT1 Underlying1 net operating income was $6.79 million up 33% FY13 distribution was 7.34 cpu (up 10% on FY12 and a 93% payout ratio to underlying net operating income) Strong like-for-like rental growth of 8.4% Key highlights Completion of the $8.6 million Leading Hea
Slide 8: APN St Kilda Road Fund
APN 541 St Kilda Road Fund New unlisted syndicate fund launched in February 2013 9.00% initial forecast distribution yield Monthly distributions $28m commercial office building leased to SEEK Ltd until November 2017 8,229 sqm NLA Acquired on $3,400 per sqm NLA (below APN estimated replac
Slide 9: APN AREIT Fund
APN AREIT Fund Rated as one of Australia’s leading property securities funds With strong support from the market ... Focussed on generating consistent income returns by actively managing a portfolio of high yielding AREITs with lower risk than the market Consistently ranks in the top two posit
Slide 10: APN Asian REIT Fund
APN Asian REIT Fund New fund, launched March 2013 investing in Asian listed Real Estate Investment Trusts (REITs) ‘Recommended’ ratings achieved from Lonsec and Zenith Inclusion on two major wraps to date Modelled on successful APN AREIT Fund Income focused with capital growth Provides a
Slide 11: New REIT opportunity
New REIT opportunity As announced to the ASX on 21 August 2013, APN is in exclusive discussions and negotiations with Australand Funds Management Limited (AFML), the Responsible Entity of the Australand Wholesale Property Fund No. 6 (AWPF6) APN is considering an Initial Public Offering (IPO or O
Slide 12: Strategy, Priorities & Outlook
STRATEGY, PRIORITIES & OUTLOOK 12
Slide 13: Approach and strategy
Approach and strategy Approach Investment Outstanding performance service APN’s strategy is to Specialist expertise grow those activities Real Estate Securities Strategy Track record in which it has a Healthcare Real Estate competitive Governance advantage Direct Funds Co-investment 13
Slide 14: Investment case
Investment case 1 Established funds management business with strong track record Well developed, deep, retail distribution channel demonstrating significant capital raising 2 capability 3 Specialist co-investing real estate investment manager 4 No debt Successfully transitioning to real growth oppor
Slide 15: Priorities for FY14
Priorities for FY14 Our approach, focusing on investment performance and outstanding service, remains unchanged Securities Business Healthcare Direct Funds Australia Asia Continue to grow GHC through active Develop and implement marketing plans 541 St Kilda Road management and appropriate valu
Slide 16: Outlook
Outlook Successfully transitioning into growth mode with new management structure Three quality established businesses Attractive investment opportunities available – the need to differentiate between markets and assets remains unchanged A specialist real Continued ability to deliver value t
Slide 17: Appendix 1: Financial Information
APPENDIX 1 FINANCIAL INFORMATION 17
Slide 18: Financial performance
Financial performance 30 June 2013 30 Jun 2012 $000s $000s Management and recurring fees 14,5631 17,225 Transaction and performance fees 3,275 1,980 Other revenue 699 407 Revenue Total 18,537 19,612 Direct costs (2,480) (2,021) Administrative expenses (13,660) (13,886) FX gains – realised/unrealised
Slide 19: Balance sheet
Balance sheet 30 June 13 30 June 12 $'000 $'000 Cash and cash equivalents 7,409 10,552 NTA (ex DTA) backing per share June 2013 Trade and other receivables 5,245 6,185 Other financial assets 15,456 11,625 25.0 Other assets 440 913 19.4 Total current assets 28,550 29,275 (1.5) 20.0 Intangible assets
Slide 20: Financial assets ($m)
Financial assets ($m)1 16.0 0.1 0.9 14.0 0.7 12.0 10.0 10.6 8.0 15.5 6.0 4.0 1.2 2.0 1.7 0.2 0.0 Direct Property Fund APN Dev Fund 1 APN Dev Fund 2 GHC² APN Asian REIT Fund APN Asian Pacific REIT 541 St Kilda Road Financial Assets Fund 1 Numbers may not add due to rounding. 2 $3.9m of this $10.6m is
Slide 21: Reconciliation of profit after tax to movement in cash
Reconciliation of profit after tax to movement in cash ($000s) 5,000 2,204 4,000 (257) 3,000 2,063 1,792 2,000 (271) 1,000 - (1,000) (4,511) (2,000) (222) (3,000) (2,149) (3,143) (4,000) Net profit after tax Add back non-cash Net cash from Proceeds from sale Payments for Payments for Dividends paid
Slide 22: Reconciliation of cash movements
Reconciliation of cash movements ($000s) 14,000 1,792 (3,292) 12,000 10,552 10,000 (2,146) 503 7,409 8,000 6,000 4,000 2,000 0 Cash at beginning of year Cash flows from operating Cash flows from investing Cash flows from financing Net effect of foreign Cash at end of year activities activities activ
Slide 23: Reconciliation of EBITDA
Reconciliation of EBITDA ($000s) 4,000 3,746 (2,662) 3,500 3,000 292 (459) 1,295 2,500 (92) 2,120 2,000 1,500 1,000 500 - EBITDA FY12 Decrease in Increase in performance Increase in other Increase in cost of sales Decrease in overheads EBITDA FY13 management and fees / upfront fees revenue recurring
Slide 24: Appendix 2: Additional Information
APPENDIX 2 ADDITIONAL INFORMATION 24
Slide 25: Funds and organisation
Funds and organisation Securities Business Healthcare Direct Funds Australia Asia Funds Asian Asset Income Fund FUM $236 million $934 million $407 million 1 Excludes Europe 25
Slide 26: Real Estate Securities – Australia
Real Estate Securities – Australia FUM APN AREIT Net inflows averaging >$13 million per 902 Fund month Net inflows since inception (January 2009) $millions 833 in excess of $415 million Performance since inception 17.10% pa Dec-12 Jun-13 (versus index of 12.20% pa)1 Annuity Style Revenue Low
Slide 27: Real Estate Securities – Asia
Real Estate Securities – Asia ARA Asian Asset Income Fund AAAIF performance and volatility comparison relative - Institutional / High Net Worth product to selected indexes (June 2013) - Total return of 18% pa over last 3 years to June 2013 - 100% liquid - Fund being re-domiciled in Luxembourg – br
Slide 28: Direct Funds
Direct Funds FUM 407 APN 541 St New fund launched in February 2013 Kilda Road Unlisted, 6 year, fixed term fund Fund $millions 381 Strong support from researcher SQM and investors 8 storey commercial property – home to SEEK Dec-12 Jun-13 Ltd Annuity Style Revenue 9.00% forecast initial dis
Slide 29: Direct Funds (cont'd)
Direct Funds (cont’d) APN Fully invested Development Australian institutional investors Fund No 1 Brisbane Technology Park: completed income producing buildings and pipeline in business technology park development in Queensland APN Fully invested Development Australian institutional invest
Slide 30: Industry awards
Industry awards APN’s depth of experience together with proven investment performance has been acknowledged by the following industry awards: Money magazine's 2013 Best of the Best award for Best Property Securities Fund - APN AREIT Fund Professional Planner/ Zenith Fund Awards 2012 – AREIT Fund
Slide 31: Disclaimers
Disclaimers The financial information included in this presentation is based on APN Property Group’s financial results that have been prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations and complies with other requirements of the law including Internationa
Slide 32: Contact details
Contact details Chris Aylward John Freemantle Tim Slattery Executive Chairman Chief Financial Officer Director, Corporate Development Ph: (03) 8656 1000 Ph: (03) 8656 1025 Ph: (03) 8656 1031 [email protected] [email protected] [email protected] APN Property Gro