FY2017 Financial Results

Transcription

1 Cedar Woods Properties Limited FY2017 Financial Results 22 August 2017

2 Cedar Woods strategy Cedar Woods Presentation 2 To grow and develop our national project portfolio, diversified by: geography product type price point so that it continues to hold broad customer appeal and performs well in a range of market conditions. Geography Product Type Price Point Established in 4 states Good geographic spread, well located projects Residential land Introducing medium density at Wooloowin & Glenside and townhouse product at Port Adelaide Diversification into commercial buildings at Williams Landing First homebuyer, upgrader, investor all catered for Brisbane, Perth and Adelaide markets offer excellent affordability

3 Cedar Woods Presentation 3 Strategy delivering continued profit growth NPAT consistent with guidance Stronger second half as expected Contributions across portfolio Lot sales at residential communities in WA, QLD and VIC Townhouses & apartments Williams Landing town centre development FY17 FY16 Change Net Profit after tax $45.4m $43.6m 4.2% Earnings per share 57.6 cents 55.3 cents 4.2% Dividends per share 30.0 cents 28.5 cents 5.3% Dividend yield (based on 30 June share price) 5.8% 6.1% 0.3% Forward presales $260m $184m 41.3% Return on equity 13.8% 14.2% 0.4% Dividend payout remains at approximately 50% Healthy ROE

4 Cedar Woods Presentation 4 Historical financial performance A strong track record of consistent profitability and growth Total Assets $m NPAT $m Financial Year Consistent growth in NPAT and dividends Delivered year-on-year NPAT growth since FY10 Seventh consecutive record profit in FY17 & record EPS and DPS Continued expansion of portfolio with total assets >$500m Investor focussed Quarterly shareholder updates Regularly providing earnings guidance Total assets Statutory NPAT

5 Balance sheet strength and access to funding Cedar Woods Presentation 5 30 June 2017 $m 30 June 2016 $m Total assets (book value) Net bank debt Net assets (equity) Net bank debt to equity 23.9% 16.5% Finance facilities Finance facility headroom Interest cover 13.9x 16.6x Gearing (%) Target Gearing 25 75% Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun-17 Net bank debt to equity at 23.9%, to continue within target range for FY18 $205 million in finance facilities, with over $100m in headroom at 30 June 2017 Strong interest cover confirms comfortable debt servicing ability

6 Positioned for continued growth Cedar Woods Presentation 6 New projects contributing to revenue in coming years Project State Project Life (Years) Ellendale (1) QLD 9 Wooloowin QLD 5 Planning underway Status Stage 1 completed, Stage 2 underway. Planning and rezoning for balance underway Jackson Green VIC 5 Townhouse releases sold out and construction underway St. A VIC 4 Townhouse releases sold out and construction underway Oxford Apartments VIC 1 Strong pre-sales Millars Landing WA 10+ Earthworks underway Bushmead WA 8 Stage 1 completed. Sales continuing Mangles Bay Marina WA 10 Rezoning continuing Piara / Forrestdale WA 6 Development commencing FY18 Glenside SA 5-10 Site works commencing. Sales launch in FY18 Port Adelaide (2) SA 7 Progressing to contract (1) Initial approval for 480 lots. It is anticipated that further stages will be approved in due course. (2) Cedar Woods selected as preferred proponent by Renewal SA

7 VIC portfolio update Cedar Woods Presentation 7 Williams Landing multiple projects progressing well including land, apartments and commercial 40KM Jackson Green initial stages of townhouses and Wattle apartments under construction with strong pre-sales St. A initial stages of townhouses under construction with strong pre-sales GEELONG BONNIE BROOK ST. A BANBURY VILLAGE WILLIAMS LANDING 20KM MELBOURNE CBD CARLINGFORD LEVESON ROAD JACKSON GREEN Acquisition of land in Bonnie Brook to yield approx. 135 lots TORQUAY Acquisition of North Melbourne medium density site

8 Williams Landing Town Centre Cedar Woods Presentation 8 Target head office artist impression Target HQ under construction 111 Overton Road strata office pre-sales underway Overton Road artist image Newton Apartments complete, Oxford underway Williams Landing Shopping Centre new tenancies opening Newton Apartments artist impression Overton Road strata office artist impression

9 Oxford Apartments Cedar Woods Presentation 9 97 apartments over 5 levels, 3 townhouses and 3 commercial units Mix of one and two bedroom product 90% sold Construction commenced April 2017 Settlement anticipated May 2018 (stage 1) and December 2018 (stage 2) June 2017

10 St A townhouses Cedar Woods Presentation 10 Artist impression Masterplan includes approximately 200 townhouses and 50 apartments Stage 1-5 civil construction complete August 2017 Stage 6 townhouses construction commenced August 2017 Sales to the end of July townhouses

11 Jackson Green construction Cedar Woods Presentation 11 Masterplan includes 450 dwellings, combination of townhouses and apartments Stage 6-9 civil works due for completion in November 2017 Stage 1 townhouse construction commenced January 2017 Sales to the end of July 2017: townhouses - 70 apartments

12 Jackson Green Wattle Apartment construction Cedar Woods Presentation 12 August apartments over 4 levels Mix of one and two bedroom product 100% sold Construction commenced May 2017 Settlement anticipated June 2018 June 2017

13 QLD portfolio update Cedar Woods Presentation 13 Two projects to date in Queensland portfolio Ellendale: 13km west of Brisbane CBD 480 lots approved on 1/3 of site Wooloowin: 5km north of Brisbane CBD Around 279 dwellings with mix of townhouses and apartments Close to two train stations and shops CARSELDINE ELLENDALE BRISBANE CBD 5KM 10KM Moreton Bay WOOLOOWIN 20KM SPRINGWOOD

14 Ellendale Cedar Woods Presentation 14 Stage 1 completed Stage 2 construction underway Builders display village construction has commenced, opening mid FY18 Rezoning of the balance of the 160ha is underway with finalisation expected in FY18

15 Wooloowin Cedar Woods Presentation 15 Approvals anticipated H1 FY18 Planning for 279 medium density dwellings Construction scheduled to commence H2 FY18

16 WA portfolio update Cedar Woods Presentation 16 40KM Successful launch of Bushmead, stage 1 completed Launch of Millars Landing and Karmara in H1 FY18 Construction of new stages at several established projects continuing Sales at Baldivis and Byford projects remain subdued 5KM 10KM PERTH CBD MANGLES BAY MARINA 20KM ARIELLA PRIVATE ESTATE HARRISDALE GREEN KARMARA EMERALD PARK MILLARS LANDING BUSHMEAD THE BROOK AT BYFORD BYFORD ON THE SCARP THE RIVERGUMS MARINERS COVE

17 Bushmead Cedar Woods Presentation ha, expected to yield approx 1,000 lots 8 year project 15kms east of Perth CBD Stage 1 87 lots, 85% sold Stage 2 released

18 Millars Landing Cedar Woods Presentation ha to yield approx lots Construction works underway Sales release in coming months February 2017

19 SA portfolio update Cedar Woods Presentation 19 Glenside site works underway June 2017 PORT ADELAIDE MAWSON LAKES Glenside approvals progressing and enquiry is increasing Port Adelaide acquisition approved by SA Cabinet, contract preparation underway, planning and design well advanced St Vincent Gulf GLENELG ADELAIDE CBD 5KM GLENSIDE Adelaide office continues to grow 10KM 20KM

20 Glenside Cedar Woods Presentation 20 Heritage Elms Building 16ha site, 3kms from Adelaide CBD Bird box installation Planning for 1,000 apartments and townhouses Site works underway Demolition of the Rural & Remote building in Stage 1 of the development

21 Market conditions Cedar Woods Presentation 21 Historically low interest rates and continued population growth supporting solid state fundamentals. Population growth continuing 1 GDP growth robust 2 Employment stable 3 Demographics driving strong capital city growth 4 VIC 2.4% 2.75% 6.0% 2.0% QLD 1.5% 2.75% 6.3% 2.1% WA 0.7% 2.25% 5.4% 2.9% SA 0.6% 2.25% 6.6% 1.2% Solid sales volumes, price growth easing Solid sales volumes, modest house price growth, apartments prices easing Market stabilising, activity increasing Steady market conditions Notes: (1) ABS growth in year to December 2016; (2) GSP growth forecast for FY18; (3) Unemployment trend as at July ABS; (4) Forecast annual growth in capital city households Source: ABS, State Treasuries

22 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Cedar Woods operating in affordable markets Cedar Woods Presentation 22 No. Of Incomes Per Household To Meet Mortgage Repayments Brisbane, Adelaide and Perth are all affordable Melbourne has housing product priced in the affordable bracket, but at some distance from the CBD Sydney Melbourne Brisbane Adelaide Perth Median Prices as at June 30, 2017 Annual Change 3 month growth to July-17 Prices expected to ease in Sydney and Melbourne in response to tightening of finance Sydney $856, % 2.2% Melbourne $655, % 4.1% Brisbane $490, % -0.7% Perth $475, % -0.3% Adelaide $434, % 0.1% Source: CoreLogic

23 Management and Board Cedar Woods Presentation 23 Since 30 June, Cedar Woods has made two important appointments Nathan Blackburne appointed Managing Director (effective 18 th September 2017) 24 years in property, with broad experience; 15 years with Cedar Woods Has overseen Cedar Woods growth into Victoria, Queensland and South Australia Plans to continue to grow Cedar Woods as a diversified property company, with a strong focus on: Strategy and a disciplined approach to execution; People and culture; and Operational excellence

24 Management and Board Cedar Woods Presentation 24 Mrs Jane Muirsmith appointed Independent Non- Executive Director (effective 2 nd October 2017) A Fellow of Chartered Accountants Australia and New Zealand, graduate of the Australian Institute of Company Directors Experienced company director and a leading digital strategist and advisor Current board member of Australian Finance Group (AFG) and Healthdirect Australia Will join the Audit & Risk Committee; Mr Robert Brown will step down from that committee

25 Diversification strategy underpinning results Cedar Woods Presentation 25 Positive outlook underpinned by strong pre-sales of $260 million, up 41% on last year ($184m) Manage our portfolio with the aim of delivering consistent annual growth in profits and dividends Grow and develop our national project portfolio diversified by geography, product type and price point so that it continues to appeal and performs well in a range of market conditions Development program is on track, backed by continued strong pre-sales and disciplined project execution and delivery Landmark projects in Queensland, Victoria and Western Australia underway, placing the company in a strong position for FY18 The Company anticipates that earnings will be skewed significantly to the second half of FY2018, however the first half profit is expected to exceed that recorded in first half of FY2017. At this early stage in the financial year, it is difficult to forecast the exact timing of settlements of presales at a number of new projects. These settlements are expected to commence late in FY2018 and continue into FY2019, and accordingly earnings guidance will be provided later in the financial year. New projects commencing and already under construction provide positive growth outlook for FY19 and future financial years

26 Perth Office Melbourne Office Ground Floor, 50 Colin Street Level 1, 476 St Kilda Road West Perth WA 6005 Melbourne VIC 3004 T: (08) T: (03) E: E: Brisbane Office Adelaide Office Level 6, 12 Creek Street Level 21, 25 Grenfell Street Brisbane QLD 4000 Adelaide SA 5000 T: (07) T: (08) E: E: Disclaimer of liability While every effort is made to provide complete and accurate information, Cedar Woods Properties Limited does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. Subject to any terms implied by law and which cannot be excluded, Cedar Woods Properties Limited accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information in this presentation. All information in this presentation is subject to change without notice. This presentation is not financial advice or a recommendation to acquire Cedar Woods Properties Limited securities and has been prepared without taking into account the objectives, financial situation or needs of individuals.