AGM Presentation to Shareholders
Released
Released
Announcement PDF
27 October 2015
FY15 Annual Results Summary & Development Update
1
Net Profit
$25.9m net profit.
NPAT
29% reduction of NPAT in FY15
over last years record result.
40
35
19th consecutive year of
30
profitability.
25
20
$m
15
10
5
2
FY15
FY14
FY13
FY12
FY11
FY10
FY09
FY08
FY07
FY06
FY05
FY04
FY03
FY02
FY01
FY00
FY99
FY98
FY97
FY96
-5
FY95
0
Earnings Per Share & Dividends
Maintained record ful ly fr anked
dividend of $0.10 per share
attributable to the year.
18
11th consecutive year of
dividends.
14
16
12
11.5c EPS being 87% payout ratio 10
in FY15.
8
Retained
Final
Cents
per
share
6
Interim
4
2
0
3
Cash Position
Strong year end record cash
position of $69m.
Well positioned to fund working
capital requirements and equity
contributions for current project
pipeline.
CASH
80
70
60
50
$m 40
30
20
10
0
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Half Year
Full Year
4
Source of Earnings FY15
Core business of property
development generated 84% of
earnings.
50% owned Spr ing View Tower ,
Toccata and Subi Str and
projects were largest
contributors.
8% contribution from rental
income.
5
Project Return on Cost & Sales
Average Return On Completed Development Projects
Retur n on cost consistently
above internal target of 25%.
45
6 year average return on cost 32.8%
40
Consistently operating within
band of 19-26% retur n on gross
sales.
35
30
25% targeted return on cost
25
20
6 year average return on gross sales 22.3%
15
10
5
0
%
FY10
FY11
FY12
Return on Cost
FY13
FY14
FY15
Return on Gross Sales
6
Segment Contributions FY15
Development
Activity
45.00
Rental Property
Other
Revaluations
Admin
PROFIT
40.00
35.00
30.00
25.00
$m
20.00
15.00
Positive Impact
10.00
Negative Impact
5.00
Profit
0.00
7
Corporate Administration Costs
Administration costs overhead as
percentage of net equity is 3.2%.
Net Equity ($m)
Administration Costs
5%
250
4%
200
150
8
FY15
FY14
FY13
FY12
FY11
FY10
FY15
FY14
FY13
0%
FY12
0
FY11
1%
FY10
50
FY09
2%
100
FY09
$m
3%
FY08
Finbar’s agility remains a major
competitive advantage
300
FY08
Outsourcing model ensures
company is scal able and
efficient.
Small close team of 19 FTEs
ensures efficient transfer of
information, quick response,
retention of IP, and corporate
agility.
Admin Costs as % of Net
Equity
Current Project Debt & Coverage
Debt & Pre-sales Coverage
$164.5m in finance facilities
repaid since 1 July 2014.
250
$164.5m
200
All debt remains project specific
0
REPAID
50
REPAID
100
REPAID
150
REPAID
100%+ debt cover age on
remaining project facilities.
$m
REPAID
No debt on residual stock.
No corporate line
No fixed and floating charge over
parent
~Project Revenue
Presales
Facility Limit
Facility Drawn
9
Income Producing Investment Property
10
Investment Property Values & Gearing Profile
Value & Gearing on Investment Assets
Loan to Value Ratio across
investment property is 43.6%
$140
Facilities with Australian Major
Banks (CBA & NAB).
$120
Equity
$100
Debt
$80
Millions
$60
$40
$20
43.6% LVR
Sold
$0
Gateway Fairlanes
Pelago
TOTAL
11
Investment Property Leasing
9,000
Fairlanes 92% leased.
8,000
Pelago Commercial 64% leased.
7,000
Pelago Residential 83% leased.
6,000
Sqm
NLA
5,000
4,000
3,000
2,000
1,000
0
Fairlanes Office
Pelago Commercial
Leased
Pelago Residential
Vacant
12
Development Update
13
FY15 Progress Highlights
Completions
Spring View Towers $99.8m
Toccata $84.9m
Subi Strand $163.9m
Acquisitions & JVs
JV Civic Triangle, South Perth ~$414.2m
JV 63 Adelaide Terrace, East
Perth~$161.7m
5 Harper Terrace, South Perth ~$51.6m
Approval s
DA Civic Heart ~$414.2m
DA Aurelia ~$134.6m
DA Linq~$66.1m
DA Motive~$81.8
Commencements
Concerto, East Perth ~$198.9m
Unison on Tenth, Maylands~$83.3m
Linq, Northbridge~$66.1m
Aurelia, South Perth~$134.6m
14
FY16 Year to Date Development Progress
Completions
Norwood $35.7m
Acquisitions & JVs
2 Homelea Court, Springs~$82.8m
Approval s
DA Sunago~$71.8m
DA Anchorage (Stage 1)~$77.3m
DA Aire West Perth~$116.9m
31 Rowe Avenue Rivervale ~$97m
Commencements
Motive ~$81.8m
15
Project Update
16
Lime Apartments
185 Swansea Street, East Victoria Park
Project: 95 residential apartments plus 16 street front
commercial lots. Comprises 2 bedroom apartments with
an average price of $469,000.
Status: Construction Completed
Owner ship: 50% owned JV through SPV
Val ue: $52 million
Completed: FY 13
Sales:
Val ue ($m)
For Sale
0
Under
Contract
0
Settled
52
Under
Contract
0
Lots
For Sale
0
Settled
111
17
Adagio
90 Terrace Road, East Perth
Project: Adagio comprises 113 one and two
bedroom apartments and 2 commercial lots within
a luxury 23 level building with an average price of
$1.43 million.
Status: Construction Completed
Owner ship: 50% JV with Land Owner
Val ue: $164.5m
Completed: FY 13
Sales:
Val ue ($m)
For Sale
0
Under
Contract
0
Settled
164.5
Under
Contract
0
Lots
For Sale
0
Settled
115
18
Knightsgate
9 Citadel Way, Currambine
Project: 43 apartments in a three level 'walk-up'
project located 200 metres from Currambine
train station. The project comprises one and two
bedroom apartments with average price of
$346,000.
Status: Construction Completed
Owner ship: 50% owned JV with Land Owner
Val ue: $14.9 million
Completed: FY 14
Sales:
Val ue ($m)
For Sale
0
Under
Contract
0
Settled
14.9
Under
Contract
0
Lots
For Sale
0
Settled
43
19
St Marks
131 Harold Street, Highgate
Project: 131 one, two & three bedroom
apartments with an average price of $513,000. St
Marks won two prestigious UDIA Awards in 2014
the High Density Development Award and the
Urban Renewal Award.
Status: Construction Completed
Owner ship: Wholly owned through subsidiary
Val ue: $70.6 million
Completed: FY 14
Sales:
Val ue ($m)
For Sale
0
Under
Contract
0
Settled
70.6
Under
Contract
0
Lots
For Sale
0
Settled
131
Winner UDIA Awards for
Excellence - High Density &
Urban Renewal Awards
20
52 Mill Point Rd
52 Mill Point Road, South Perth
Project: 8 luxury apartments in 8 storey
building. $2.1million average price.
Status: Construction Completed
Owner ship: 50% share of profit through
project management agreement with land
owner
Val ue: $16.8 million
Completion: FY 14
Sales:
Val ue ($m)
Under
Contract
0
For Sale
0
Settled
16.8
Under
Contract
0
Lots
For Sale
0
Settled 8
21
Au
208 Adelaide Terrace & 311 Hay Street, East Perth
Project: 192 one, two & three bedroom apartments plus 2
ground floor commercial lots. Average price of $555,000.
Status: Construction Completed
Owner ship: 45% through joint venture equity partners and
joint land owner
Val ue: $107.7 million
Completion: FY 14
Sales:
Val ue ($m)
Under
Contract
0
Settled
107.7
For Sale
0
Under
Contract
0
Lots
For Sale
0
Settled
194
22
Ecco
262 Lord Street, Perth
Project: 90 one, two & three bedroom
apartments plus 8 commercial lots with an
average price of $527,551.
Status: Construction Completed
Owner ship: 50% JV with land owner
Val ue: ~$51.7 million
Completion: FY 14
Sales:
Val ue ($m)
For Sale
3.1
Under
Contract
0
Settled
48.6
Under
Contract
0
Lots
For Sale
4
Settled
94
23
Spring View Towers
3 Homelea Court, Rivervale
Project: 188 apartments in two residential
towers (8 & 16 levels respectively). $530,851
average price.
Status: Construction Completed
Owner ship: 50% JV through SPV
Val ue: ~$99.9 million
Completion: FY 15
Sales:
Lots
Val ue ($m)
For Sale
3.2
Settled
96.7
For Sale
6
Settled
182
24
Subi Strand
28 Hood Street, Subiaco
Project: 245 one, two and three bedroom
apartments plus 19 ground floor commercial
lots. $620,083 average price.
Status: Construction Completed
Owner ship: 50% JV through SPV
Val ue: ~$163.9m
Completion: FY 15
Sales:
Val ue ($m)
For Sale Under
Under
22.8 Contract
Contract
13
8.6
Settled
132.5
Lots
For Sale
32
Settled
219
25
Toccata
88 Terrace Road, East Perth
Project: Toccata comprises 45 luxury
apartments plus 2 commercial lots. Average
price $1.806 million.
Status: Construction Completed
Owner ship: 50% JV with land owner
Val ue: ~$84.9 million
Completion: FY 15
Sales:
Under Val ue ($m)
For Sale
Contract
12.2
4
Settled
68.7
Under Lots
Contract
3
Settled
39
For Sale
5
26
Norwood
280 Lord Street, Perth
Project: 59 boutique apartments plus 4
commercial lots in a six level building. Average
price $566,666.
Status: Construction Completed
Owner ship: 50% JV with land owner
Val ue: ~$35.7 million
Completion: FY 16
Sales:
Val ue ($m)
For Sale
8.8
Under
Contract
4.9
Settled
22
Lots
For Sale
15
Under
Contract
8
Settled
40
27
Arbor North
1 Rowe Avenue, Rivervale
Project: 154 one and two bedroom apartments
with an average price of $490,909.
Status: Under Construction
Owner ship: 50% JV through SPV
Val ue: ~$75.6 million
Est. Completion: FY 16
Sales:
Val ue ($m)
For Sale
20.7
Under
Contract
54.9
Lots
Settled
0
For Sale
40
Settled 0
Under
Contract
114
28
Unison on Tenth
2 Tenth Avenue, Maylands
Project: Unison on Tenth comprises 167 one, two and
three bed apartments plus 2 commercial lots. Average
price $492,899.
Status: Under Construction
Owner ship: 50% JV with land owner
Val ue: ~$83.3 million
Est. Completion: FY 16
Sales:
Lots
Val ue ($m)
Settled
0
For Sale Under
39.9
Contract
43.4
Settled 0
For Sale Under
82
Contract
87
29
Linq
269 James Street, Northbridge
Project: Linq comprises 112 one and two bedroom apartments
plus 4 commercial lots. The average price is $569,828.
Status: Under Construction
Owner ship: Wholly owned through subsidiary
Val ue: ~$66.1m
Est. Completion: FY16
Sales:
Val ue ($m)
For Sale
27.7
Lots
Settled
0
Under
Contract
38.4
Settled 0
For Sale
42
Under
Contract
74
30
Concerto
189 Adelaide Terrace, East Perth
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 $876,211.
Status: Under Construction
Owner ship: 50% JV with land owner
Val ue: ~$198.9 million
Est. Completion: FY 17
Sales:
Val ue ($m)
Lots
Settled 0
Settled
0
For Sale
74.5
Under
Contract
124.4
For Sale
85
Under
Contract
142
31
Aurelia
96 Mill Point Road, South Perth
Project: Aurelia will consist of 118 one, two and three bedroom
apartments plus 6 commercial units and 14 office spaces. Average
price $975,362.
Status: Under Construction
Owner ship: 50% owned JV through SPV
Val ue: ~$134.6 million
Est. Completion: FY 17
Sales:
Lots
Val ue ($m)
Settled 0
Settled
0
For Sale
42.7
Under
Contract
91.9
For Sale
39
Under
Contract
99
* Indicative lots and project value only
32
Motive
172 Railway Parade, West Leederville
Project: Motive consists of 143 one and two bedroom
apartments with an average price of $572,028.
Status: Under Construction
Owner ship: 50% JV with land owner
Val ue: ~$81.8 million
Est. Completion: FY18
Sales:
Val ue ($m)
Settled
0
For Sale
51.3
Lots
Under
Contract
30.5
Settled 0
For Sale
82
Under
Contract
61
33
Sunago
36 Chester Avenue, Dianella
Project: Sunago will consist of 163 one and two bedroom
apartments. Approximate average price of $440,491.
Status: DA Approved. Launching 2015
Owner ship: 50% owned JV through SPV.
Val ue: ~ $71.8 million
Est. Completion: FY 18
Sales:
Val ue ($m)
Lots
Future
Release*
71.8
Future
Release*
163
34
* Indicative lots and project value only
Harper Terrace
5 Harper Terrace, South Perth
Project: Approximately 42 luxury apartments plus
approximately 1,800 square metres of ground floor retail
and level one office space.
Status: Development application being submitted
October 2015.
Ownership: Wholly owned through subsidiary
Value: ~$51.6 million
Est. Completion: FY 18
Sales: Val ue ($m)
Lots
Future
Release*
51.6
Future
Release*
42
35
31 Rowe Avenue
31 Rowe Avenue, Rivervale
Project: 31 Rowe Avenue will consist of 183 one,
two and three bedroom apartments plus 7
commercial units to be constructed on 4,000m 2
development site situated at the main entrance
to the Springs precinct.
Status: Development approval received
Owner ship: 50% JV through SPV
Val ue: ~$97 million
Est. Completion: FY 18
Sales:
Val ue ($m)
Lots
Future
Release*
97.0
Future
Release*
190
* Indicative project value only
36
Unison on Kennedy
1 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: DA Approval
Ownership: 50% JV through SPV
Value: ~$85 million
Est. Completion: FY 18
Sales:
Val ue ($m)
Lots
Future
Release*
85.0
Future
Release*
182
* Indicative lots and project value only
37
Aire West Perth
647-659 Murray Street, West Perth
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.
Status: DA Approved. Launching 2015.
Owner ship: 50% JV through SPV
Val ue: ~$116.9 million
Est. Completion: FY 18
Sales:
Val ue ($m)
Lots
Future
Release*
116.9
Future
Release*
244
* Indicative lots and project value only
38
Arbor South
Lots 1002 & 1003 Rowe Avenue, Rivervale
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.
Status: In Planning
Owner ship: 50% JV through SPV
Val ue: ~$60.9 million
Est. Completion: FY 18
Sales:
Val ue ($m)
Lots
Future
Release*
60.9
Future
Release*
132
* Indicative lots and project value only
39
Belmont
239 Great Eastern Highway, Belmont
Project: Approximately 194 apartments plus 2
ground floor commercial lots to be constructed
on 5,692m 2 development site in Belmont .
Status: DA submitted
Ownership: Wholly owned through subsidiary
Value: ~$84.1 million
Est. Completion: FY 19
Sales:
Val ue ($m)
Lots
Future
Release*
84.1
Future
Release*
196
* Indicative lots and project value only
40
East Perth
63 Adelaide Terrace, East Perth
Project: 63 Adelaide Terrace will consist of 247 one, two and
3 bedroom apartments plus 3 commercial units and 2 office
units.
Status: DA Submitted
Owner ship: 50% JV through SPV
Val ue: ~$161.7 million
Est. Completion: FY 19
Sales:
Val ue ($m)
Lots
Future
Release*
161.7
Future
Release*
252
* Indicative lots and project value only
41
2 Homelea Court
Cnr Rowe Avenue and Homelea Court, Rivervale
Project: 2 Homelea Court will consist of
approximately 185 apartments with in 10 level
building. The site is comprised of four vacant
blocks totaling 3,770 square metres.
Status: In Planning
Owner ship: Wholly owned through subsidiary
Val ue: ~$82.8 million
Est. Completion: FY 19
Sales:
Val ue ($m)
Lots
Future
Release*
82.8
Future
Release*
185
* Indicative lots and project value only
42
Civic Triangle
1 Mends Street, South Perth
Project: The Civic Triangle 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
facilities, retail and office spaces. Average price $1.324 million.
Status: Marketing commenced. Launched the 12th of
September
Owner ship: 50% JV through SPV
Val ue: ~$414.2 million
Est. Completion: FY 19
Sales:
Value ($m)
Settled
0
For Sale
331.5
Under
Contract
82.68
Settled
0
Lots
Under
Contract 68
For
Sale
245
43
* Indicative project value only
Springs Office
Lot 1020 Rowe Avenue Rivervale
Project: 6 level office building comprising
6,250m 2 NLA. 86 residential apartments option.
Status: Development approved. Pre-leasing
Owner ship: 50% JV through SPV
Val ue: ~$37.6 million
Est. Completion: FY 19
Pre-Leasing:
NLA m2
6250
0
2000
4000
6000
Leased
Available
8000
44
Anchorage (Stage 1)
Lot 452 Sutherland & Morgans Street, Port Hedland
Project: The first stage of the proposed
redevelopment of 3.15ha site into approximately
700 apartments plus ground floor commercial
lots over four stages. Purchase subject to
viability.
Status: DA Approval
Owner ship: 50% JV through SPV
Val ue: ~$77.3 million
Est. Completion: FY 19
Sales:
Val ue ($m)
Lots
Future
Release*
77.3
Future
Release*
115
* Indicative lots and project value only
45
Pipeline Summary
46
Pipeline Estimated Completion Summary
Note: Anchorage Port Hedland Stages 2, 3, & 4, not included in this Summary
47
Residential Sales Contract Activity
Subi
Strand
531 sales worth $378.4m in FY15
being average of 1.45 sales /
$1.04 mil l ion per day.
154 sales worth $131.6m in
financial year to date being
average of 1.3 sales / $1.1m per
day average.
Boost from the release of new
stock at Unison, Motive, Linq,
Aurelia, & Civic Heart.
Aurelia
Linq
120
52 Mill Pt
100
Concerto
Arbor North
Spring View
Towers
80
Norwood
Toccata
Civic Heart
Unison 10th
Motive
60
40
20
0
Lots
$m
Linear ($m)
Project Marketing
Launch Date
48
Accrued Presales Total
St Marks
52 Mill Pt
Millions
Subi Strand
$600
Pelago East
$500
$400
Toccata
Au
Pelago West
Ecco
Spring View
Towers
Norwood
FY15
FY16
Adagio
Lime
$300
$200
$100
FY13
FY14
$m
Project
Settlement Date
49
Cumulative Units Sold
8000
7000
4494 units developed to date.
6000
Anticipating to develop and settle
an additional 3057 over next four
years.
5000
Units 4000
3000
2000
1000
0
9697 989900 01
03
04
05
07
08
09
10 11 12
13
14 15 16
17
18
Year
50
19
Further information, please visit www.finbar.com.au
51
Important Notice
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 (or symbols) such 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, statutory approval delays, 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, reliability or completeness of the information in this
Presentation or that the information is suitable for your intended use and disclaim all responsibility and
liability.
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 general information purposes only.
52
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