Announcement PDF Finbar Group Limited 28th Annual Report for the year ended 30 June 2012 annual report 2012 |pelago west FY2012 summary of results 2 chairman’s message 4 managing director’s report 6 about finbar 8 development overview 14 development timeline 15 perth metro completed projects 17 perth metro under construction 20 perth metro future developments 26 finbar regional completed projects 28 finbar regional future developments 29 commercial investments 30 financial report 33 directors’ report  34 consolidated statement of comprehensive income 49 consolidated statement of changes in equity 50 consolidated statement of financial position 51 consolidated statement of cash flows 52 notes to the financial statements 53 directors’ declaration 82 independent auditor’s report to members of Finbar Group Limited 83 lead auditor’s independence declaration  85 ASX additional information 86 corporate directory 88 developing better lifestyles contents 1 2 FY2012 summary of results $28.3m profit $0.09c dividend paid per share Shareholder Returns 2012 2011 Net Profit $28,300,279 $24,023,464 Earnings per share $0.13 $0.12 Dividends per share $0.09 $0.085 Market price per share $1.08 $0.98 Change in share price $0.10 -$0.02 Return on capital employed 17.80% 14.55% Return on total equity 15.27% 14.11% summary of shareholder returns FY08 $0.06 FY09 $0.07 FY10 $0.075 FY11 $0.085 FY12 $0.09 FY08 $12.2m FY09 $18.9m FY10 $23.5m FY11 $24m FY12 $28.3m |adagio 3 4 Above and Below Fairlanes Office John Chan - Executive Chairman Finbar’s new corporate premises at Fairlanes Office Dear Shareholder On behalf of the Board of Directors, I am pleased to present you with the 28th Annual Report of your Company for the financial year ended 30 June 2012, the Company’s 17th year as a residential property developer. Finbar Group achieved a significant milestone this financial year announcing a record after tax profit of $28.3 million, an 18% increase on the previous year. Our agile business model has allowed us to introduce products into new markets while meeting demand in terms of price and product expectation. This has been particularly evident through our increased presence in the North West region of Western Australia. We have continued to strengthen our relationship with the State Government of Western Australia for regional development in the Pilbara region by being selected as the preferred developer for the $300+ million apartment project in Port Hedland at the end of July. This is part of our long term commitment to provide the best social outcome for local communities, in support of the Pilbara cities vision, and establish assets that will transform lifestyles and last through current and future generations in the North West. Given our strong financial performance this year and a continued positive outlook, we have rewarded shareholders with a 16% increase in the interim dividend paid in February. Coupled with our final dividend announced recently it has resulted in a 9 cent fully franked dividend attributable to the financial year. In April 2012, we relocated to new corporate office premises in the Fairlanes office building at 181 Adelaide Terrace in East Perth. This relocation to one of our flagship properties ensures Finbar is geographically closer to the majority of our company projects and our key stakeholders while helping us attract and retain the most capable property people in our industry and providing your company with the capability for growth now and into the future. We took the opportunity to refresh our corporate brand at the time of our office relocation to reflect our commitment to develop better lifestyles using fresh ideas and concepts. The new corporate brand also reinforces our leading position as the largest residential apartment developer in Perth and the Pilbara region of Western Australia and has been well accepted. In December 2011, Finbar strengthened its Board by appointing Lee Verios as a Non-executive Director. Mr Verios is a well credentialed company director with significant commercial experience and holds positions in a variety of public and private enterprises. On behalf of the Board and Shareholders, I would like to take this opportunity to thank our management, our staff, our joint venture partners and our consultants for their dedication and commitment towards achieving long term success at Finbar. We acknowledge and appreciate your support over the past year and anticipate sharing further success with you in the future. We look forward to welcoming you to our new corporate office and updating you on our projects, a number of which can be seen from our office windows, at the Annual General Meeting in October. John Chan Executive Chairman 23 August 2012 chairman’s message Finbar has relocated to new corporate office premises - our flagship property Fairlanes 5 6 Pelago West Finbar accomplished another record profit year during FY12 alongside an improving local property market. Again, we have placed your company in a robust position with development progress, supported by pre-sales, and a strong supplemented pipeline of new projects both in Perth and the North West which are all expected to secure future profitability and growth. The largest contribution to the FY12 record annual profit resulted from the completion of the Fairlanes project. Launched in March 2009 in the midst of the Global Financial Crisis, we remain very proud of this wholly owned project. As Finbar’s tallest development to date, Fairlanes represents our capability to deliver a state of the art mixed use building with a successful fusion of residential, office and retail space. We achieved another significant milestone during FY12 through the completion of Pelago West, which was the Company’s first expansion project in the North West providing housing for regional communities supporting the resources sector. Whilst the profitability of this project will not flow though until FY13 upon settlement of the apartments, it has created a major positive impact on Finbar’s local and national profile placing the Company in a leading position to capitalise on future opportunities in the North West region. Pelago West is currently 87% pre-sold or leased with residents starting to settle their apartments as at the date of this report. Pelago West has provided an excellent example of Finbar’s ability to execute a strategy of introducing a product into a new market in a timely manner and within price and budget expectations. We pride ourselves on maintaining our low cost base structure while delivering superior profit margins to our shareholders. We initially raised capital for our Pilbara expansion in December 2010 and are delighted to confirm that we are now obtaining the benefits of this initiative which will be reflected in our FY13 half year accounts. At the end of June, we commenced the second stage of the Pelago high rise apartment project in Karratha, which will comprise 174 apartments and 2000 square metres of commercial space with completion expected by the end of the 2013 calendar year. With the completion of Pelago West in June, this has provided Finbar with substantial efficiencies in remaining mobilised in Karratha and further confidence to complete Pelago East within the specific timeline and budget. Finbar stands to benefit substantially from improving economic conditions, the return to the market of the property investor, and a low interest rate environment. We continue to exercise caution with continued volatility in global markets, although we strongly believe Finbar’s exposure to the North West region and core Perth accommodation demand areas will continue to benefit from a State experiencing strong economic growth. We continue to link our debt to long term facilities secured on investment property with recurrent income or project specific construction finance facilities which are repaid from pre-sales on completion. We would like to thank Commonwealth Bank, Westpac, and NAB for their project finance support as we continue to launch new projects to achieve long term earnings growth. More recently, we have attracted a number of new institutional shareholders onto the share register who have contributed towards an improvement in our share register structure and liquidity of Finbar’s shares. We generate the majority of our income from earnings that can only be reported on physical completion and settlement of sold apartments. The sales process for an apartment project is a continual process that commences shortly after the project receives its statutory development approvals and is often sold-out only after construction completion. For this reason, the provision of accurate guidance on earnings for the Company remains a challenging proposition until we approach the financial year end. Whilst we are unable to provide an accurate guidance for FY13 earnings at this early stage, we are confident, based on current construction and sales progress, that we will see further earnings growth in FY13 and exceed our FY12 record profit. I would like to thank all of the Finbar team, our building contractors, service providers, consultants and State Government departments who we work closely with for their dedication and determination to raise our performance standards continually higher while striving to deliver further growth in earnings and underlying company value for shareholders. Darren Pateman Managing Director 23 August 2012 managing director’s report Darren Pateman, Managing Director In the current financial year, we will witness the completion of the Adagio Apartments in East Perth and the Lime Apartments in East Victoria Park with both developments also anticipated to contribute to FY13 earnings. Work has commenced on St Marks Apartments in Highgate and Pelago East in Karratha, as previously mentioned. We will soon commence construction on the Ecco Apartments in Perth and the Au Apartments in East Perth. In terms of our future pipeline, we announced that we had secured the new Springs Rivervale project in January 2012 while more recently we have been selected by the State Government to redevelop the former Port Hedland Hospital site into a $300+ million residential and commercial complex overlooking the Spoilbank Marina. Further details of these developments can be found within this report. We are anticipating steady growth in earnings for FY13 as we manage a series of properties through different stages of the development cycle. In addition, we have retained the assets of Fairlanes, Gateway and Pelago West to generate reoccurring investment income to supplement our property development business, which are anticipated to contribute to earnings growth in the future. We are encouraged by the recent return to the market of property investors who have been largely absent since the commencement of the Global Financial Crisis and have traditionally represented the strongest driver of demand for our properties. This increase in property investment activity has resulted in sales activity increasing by 50% on the corresponding period last year, when demand was primarily being driven by the owner occupier market. A good example of such renewed activity is the Ecco development in East Perth which is 50% pre-sold and has already secured 40% of its sales from investors since marketing commenced in February 2012. We have maintained a strong balance sheet and cashflow which is critical for us to continue recycling our capital through the product lifecycle of identifying, developing, managing and selling new projects, and to be in the position to take advantage of new development opportunities as they are sourced. Finbar has enjoyed nurturing relationships with a number of successful joint venture partners who have continued to reinvest alongside Finbar and share in the proceeds of this leveraged growth. We are still recognised as Western Australia’s most reliable apartment developer which has strengthened our relationship with the State Government and helped us to be selected as a preferred developer of residential apartment accommodation in the North West. 7 8 about finbar Finbar Group Limited is an Australian property development company listed on the Australian Stock Exchange trading under the security code ‘FRI’. Incorporated in 1984, Finbar first listed as a property development company in 1995 and has established itself as the market leader in built form apartment development in the Perth metropolitan area and Karratha. Over the past 18 years Finbar has managed the construction and delivery of 3,044 apartments worth an estimated $1.55 billion. Finbar’s core business lies in the development of medium to high density residential apartments and commercial property within the state of Western Australia where it carries out its development projects in its own right or through incorporated special purpose entities and Joint Venture companies, of which the Company either directly or indirectly holds interests in project profitability and earns project management fees. In addition to residential projects, the Company has also retained interest in 22,000m2 of commercial space in three commercial office buildings in the Perth metropolitan area and in the Pilbara, which have been retained to supplement core residential development income. The company has expanded into the affluent North West of the State providing apartment accommodation for communities that support the resources sector. Branded under the business unit, Finbar Regional Communities, this expansion has proven to be highly successful and is providing the Company with a strong potential for growth in the region with development interests now in Karratha and Port Hedland. Finbar outsources its development activities to external consultants, sales persons, and building contractors. The administration of the Company along with the operating, investment, and acquisitions decisions are made by the Company board and management. The Company employs just thirteen staff in its East Perth offices who are an experienced, well-credentialed, and long term team. It is the Company’s conservative approach to its business which has held Finbar in good stead throughout cyclical market trends and the company is well positioned for sustainable results and future growth. |pelago west 9 10 apartments completed to date 3,044 value completed to date $1.55 billion western australian market share in apartments 42% about finbar Adagio - Symphony City Blue 2 Bluewater 85 Riverstone Seville on the Point Matilda Bay Reflections The Westralian Infinity 18 on Plain Times 2 Domus Au Royale Verve Soho Wellington Place Circle Fairlanes The Rise One28 Cosmopolitan Code Kingston 175 Hay Market Rise Chelsea Altair The Saint 11 12 Cattrall Park, Karratha Karratha Leisure Centre corporate social responsibility Key Activities Karratha Community Chest Finbar has established an Annual Community Chest offering financial assistance to not-for-profit community, sporting, cultural, service groups, associations and individuals that are based within the Shire of Roebourne. The objective is to contribute high quality programmes, community events, facilities and services that provide a return benefit to the local community. New Karratha Leisure Complex During FY12, Finbar contributed towards the funding of the $65 million Karratha Leisure Complex, a state of the art facility which is anticipated to become the Pilbara’s premier sport and entertainment precinct. The complex will consist of top class facilities including a resort-style aquatic centre with children’s splash playground and three swimming pools as well as indoor and outdoor multi-purpose sports venues. The complex has secured a large majority of the funding from Regional Development Australia and the Western Australian State Government. Construction of the facility commenced in January 2012 and is due for completion in February 2013 with the complex being open to the public from April 2013 onwards. The Karratha Leisure Complex is one of six strategic community projects delivering immediate improvements to lifestyle options for local residents and assisting in transforming Karratha from a mining town to a significant Australian city in the North West. The Rotary Club of Crawley During FY12, Finbar agreed to sponsor two young people each year to join the Rotary Club of Crawley in Perth for a three year period. The Rotary Club is an organisation consisting of business professionals and community leaders that volunteer time, talent and resources in order to remedy vital community needs. West Australian Ballet Finbar continues to remain a major sponsor of West Australian Ballet which is based in Perth. West Australian Ballet offers an extensive dance programme including three to four major seasons in Perth, regional touring throughout the State, choreographic workshops and a detailed education programme. In 2011, West Australian Ballet toured to Karratha, Mandurah, Bunbury, Albany and Canberra. Princess Margaret Hospital for Children Finbar provides an annual purchase of important equipment to Princess Margaret Hospital for Children. Princess Margaret Hospital for Children is an internationally recognised paediatric organisation with approximately 250,000 patient visits from around the State every year. about finbar |wa ballet 13 14 development overview development timeline |fairlanes Information current as of 17th August 2012 FY2013 FY2014 FY2015 FY2016 Pelago West / $85.6m Lime / $51.4m Adagio / $174.1m Port Hedland / $300m Dianella / $60m Pelago East / $140m Springs / $128m Toccata / $120m St Marks / $66.5m ECCO / $51.8m Knightsgate / $14.6m Au / $107.2m Harmony / $160m Concerto & 15 16 |fairlanes fairlanes residential 181 Adelaide Terrace, East Perth PROJECT COMPANY / 175 Adelaide Terrace Pty Ltd MARKETING COMMENCED / March 2009 CONSTRUCTION COMPLETION / May 2012 TOTAL PROJECT SALES VALUE / $108,180,000 AVERAGE PRICE TO DATE / $830,906 TOTAL APARTMENT LOTS / 128 LOTS SOLD / 127 LOTS SETTLED / 122 FINBAR’S ULTIMATE INTEREST / 100% Fairlanes was the largest contributor to this year’s profit result with 118 units in the 128 unit project settling in the reporting period. A total of 4 lots have settled since the end of the reporting period, and an additional 5 units are scheduled to settle by the end of September 2012. Only 1 unit remains unsold in the project and it is anticipated that this will be sold and settled in the financial year ending 30 June 2013. settled $100,075,000 / 93% pending settlement $4,675,000 / 4% unsold $2,665,000 / 2% total project sales value $108,180,000 completed projects perth metro 17 18 18 Plain Street, East Perth PROJECT COMPANY/ 22 Plain Street Pty Ltd MARKETING COMMENCED / March 2010 CONSTRUCTION COMPLETION / March 2012 TOTAL PROJECT SALES VALUE / $20,459,000 AVERAGE PRICE TO DATE / $632,793 TOTAL APARTMENT LOTS / 29 TOTAL COMMERCIAL LOTS / 2 LOTS SOLD / 29 LOTS SETTLED / 29 FINBAR’S ULTIMATE INTEREST / 50% 18 on Plain was completed in March 2012. 27 residential units were settled in this reporting period, with 2 residential units settled since the end of the reporting period. There are 2 unsold commercial lots in the project and it is anticipated that these lots will be sold and settled in the financial year ending 30 June 2013. 18 on plain completed projects settled $18,351,000 / 90% unsold $2,108,000 / 10% total project sales value $20,459,000 times 2 apartments 143 Adelaide Terrace, East Perth PROJECT COMPANY / 143 Adelaide Terrace Pty Ltd MARKETING COMMENCED / November 2009 CONSTRUCTION COMPLETION / April 2011 TOTAL PROJECT SALES VALUE / $94,197,500 AVERAGE PRICE / $466,324 TOTAL APARTMENT LOTS / 200 TOTAL COMMERCIAL LOTS / 2 LOTS SOLD / 202 LOTS SETTLED / 202 DATE OF LAST LOT SETTLED / 9 Jan 2012 FINBAR’S ULTIMATE INTEREST / 50% All lots are now sold. 30 units were settled in the reporting period. The Company is pleased to report that the development has come to an end. perth metro 19 20 under construction 189 Swansea Street East, East Victoria Park TOTAL LOTS / 95 – 2 bedroom apartments SALES CONTRACTS SECURED / $28,664,900 COMMERCIAL / 16 TOTAL PROJECT SALES VALUE / $51,452,900 AVERAGE SALE PRICE TO DATE / $447,889 ESTIMATED COMPLETION DATE / Financial Year 2013 % SOLD / 56% PROJECT COMPANY / 185 Swansea Street Pty Ltd FINBAR’S ULTIMATE INTEREST / 50% Lime apartments located just 10 minutes from the Perth CBD encompasses 95 two bedroom apartments plus 16 commercial lots with an approximate end value of $51.4 million. Marketing commenced last reporting period in March 2011 and to-date the Company has sold 67 lots valued at $28.7 million. Construction is anticipated to be completed in September 2012 with settlement to follow in the first half of the Financial Year 2013. lime adagio apartments 90 Terrace Road, East Perth TOTAL LOTS / 113 – 2 and 3 bedroom apartments SALES CONTRACTS SECURED / $85,745,000 COMMERCIAL / 2 TOTAL PROJECT SALES VALUE / $174,168,000 AVERAGE SALE PRICE TO DATE / $1,587,870 ESTIMATED COMPLETION DATE / Financial Year 2013 % SOLD / 49% PROJECT COMPANY / 88 Terrace Road Pty Ltd FINBAR’S ULTIMATE INTEREST / 50% Stage one of the Company’s Symphony City redevelopment will comprise of 113 luxurious 2 and 3 bedroom apartments over 23 storeys. The development has an approximate end value of $174.2 million and to date the Company has secured 54 pre-sale contracts valued at $85.7 million. Construction of the structure is now up to level 20 of 23 with internal fit-out of the lower floors underway. perth metro 21 22 st marks apartments under construction 131 Harold Street, Highgate TOTAL LOTS / 130 – 1, 2 and 3 bedroom apartments SALES CONTRACTS SECURED / $40,157,000 TOTAL PROJECT SALES VALUE / $66,490,000 AVERAGE SALE PRICE TO DATE / $528,382 ESTIMATED COMPLETION DATE / Financial Year 2014 % SOLD / 60% PROJECT COMPANY / Finbar Property Trust FINBAR’S ULTIMATE INTEREST / 100% St Marks Apartments is located just a stone’s throw away from the vibrant Beaufort Street café strip. St Marks comprises of 130 apartments in 1, 2 and 3 bedroom layouts with an approximate end value of $66.5 million. The Company launched the project to the market this reporting period in September 2011 and has to-date secured 76 pre- sales contracts valued at $40.2 million. Construction works have now commenced. 208 Adelaide Terrace and 311 Hay Street, East Perth TOTAL LOTS / 192 – 1, 2 and 3 bedroom apartments SALES CONTRACTS SECURED / $54,603,500 COMMERCIAL / 2 TOTAL PROJECT SALES VALUE / $107,198,000 AVERAGE SALE PRICE TO DATE / $540,629 ESTIMATED COMPLETION DATE / Financial Year 2014 % SOLD / 51% PROJECT COMPANY / 208 Adelaide Terrace Pty Ltd FINBAR’S ULTIMATE INTEREST / 45% Au Apartments, located opposite the Perth Mint and Pan Pacific Hotel in East Perth was launched to the market in October 2011. The project includes 192 apartments in 1, 2 and 3 bedroom configuration plus 2 commercial lots distributed over two separate 10 storey structures. The Company has secured 51% in pre-sales amounting to 101 lots valued at $54.6 million. The existing building on site has been demolished and construction will commence in September. au apartments perth metro 23 24 knightsgate residence 9 Citadel Way, Currambine TOTAL LOTS / 43 – 1 and 2 bedroom apartments SALES CONTRACTS SECURED/ $9,211,000 TOTAL PROJECT SALES VALUE / $14,554,000 AVERAGE SALE PRICE TO DATE / $328,964 ESTIMATED COMPLETION DATE / Financial Year 2014 % SOLD / 63% PROJECT COMPANY / 17 Sunlander Drive Pty Ltd FINBAR’S ULTIMATE INTEREST / 50% Knightsgate Residences located in Currambine encompasses a total of 43 – 1 and 2 bedroom apartments over three storeys. The Company launched to the market in the last reporting period in February 2011 and has so far secured 28 pre-sales being 63% of the project totalling $9.2 million. Construction works have now commenced. under construction ecco apartments 262 Lord Street, Perth TOTAL LOTS / 90 – 1, 2 and 3 bedroom apartments SALES CONTRACTS SECURED / $26,218,000 COMMERCIAL / 8 TOTAL PROJECT SALES VALUE / $51,826,000 AVERAGE SALE PRICE TO DATE / $504,192 ESTIMATED COMPLETION DATE / Financial Year 2014 % SOLD / 51% PROJECT COMPANY / 262 Lord Street Perth Pty Ltd FINBAR’S ULTIMATE INTEREST / 50% Ecco Apartments located at 262 Lord Street in Perth is a 50% Joint Venture project which the Company launched to the market in February 2012. The Company has secured 51% in pre-sales totalling 52 apartments valued at $26.2 million. Demolition work is now complete and construction scheduled to commence in September 2012. perth metro 25 26 the springs dianella future developments toccata concerto and harmony 36 Chester Avenue, Dianella 36 Chester Avenue located in Dianella is a 50% Joint Venture project with an approximate end value of $60 - $80 million. The Company is awaiting the revised Dianella Districts Centre Structure Plan to allow increased density and height. This Structure Plan is anticipated by the end of 2012 calendar year. The Company is proposing between 80 and 135 residential lots up to 6 levels comprising 1, 2 and 3 bedroom apartments. APPROXIMATE PROJECT VALUE / $60 - $80 million ESTIMATED COMPLETION DATE / Financial Year 2015 Corner Great Eastern Highway and Graham Farmer Freeway The Springs, located within close proximity to Crown Metropol along Great Eastern Highway is proposed to comprise of 188 apartments in 1, 2 and 3 bedroom configurations over 16 levels plus a separate 6 level office building containing approximately 6,200m2 of NLA, subject to Development Approval. APPROXIMATE PROJECT VALUE / $128 million ESTIMATED COMPLETION DATE / Financial Year 2015 88 Terrace Road, East Perth Toccata Apartments, located in East Perth will be the final stage of the Symphony City redevelopment. The development will comprise of 43 luxury apartments plus two commercial lots over 22 storeys with an approximate end value of $120 million. APPROXIMATE PROJECT VALUE / $120 million ESTIMATED COMPLETION DATE / Financial Year 2015 193 Terrace Road, East Perth Concerto & Harmony Apartments located at 193 Adelaide Terrace in East Perth will be the second stage of the Symphony City redevelopment totalling approximately $160 million. The Company is currently in the planning stage of a mix of office and apartments along with the refurbishment of the heritage building as additional office space. APPROXIMATE PROJECT VALUE / $160+ million ESTIMATED COMPLETION DATE / Financial Year 2016 perth metro 27 28 pelago east apartments port hedland 23 Sharpe Avenue, Pegs Creek TOTAL LOTS / 114 – 1, 2 and 3 bedroom apartments SALES CONTRACTS SECURED / $56,429,854 COMMERCIAL / 8 TOTAL PROJECT SALES VALUE / $85,591,554 (Residential only) AVERAGE SALE PRICE TO DATE / $705,950 ESTIMATED COMPLETION DATE / Financial Year 2013 % SOLD / 66% PROJECT COMPANY / Finbar Karratha Pty Ltd FINBAR’S ULTIMATE INTEREST / 100% Stage one of the Company’s first Pilbara project was launched to the market in March 2011. The development includes 114 apartments in 1, 2 and 3 bedroom layouts over 8 storeys in what is to be Karratha’s first high rise building. The residential portion of the development has a total end value of approximately $85.6 million of which the Company has secured 82 pre-sale lots valued at $56.4 million with a further 19 lots pre-leased. The Company received Occupation Permit in July 2012 and titles issued early August 2012. Settlement has now commenced. pelago west apartments completed projects future developments 26 Sharpe Avenue, Pegs Creek Stage two of the Company’s Pelago project in Karratha encompasses a total of 174 – studio, 1, 2 and 3 bedroom apartments plus 14 commercial lots totalling 1,722m2 of ground floor commercial space. Pelago East is now under construction with an approximate end value of $140 million. APPROXIMATE PROJECT VALUE / $140 million ESTIMATED COMPLETION DATE / Financial Year 2014 Sutherland and Morgans Streets, Port Headland The Company was appointed as the preferred developer by the State Government of a significant apartment site overlooking the Spoilbank Marina in the Pilbara town of Port Hedland. The project located on the former Port Hedland Hospital site will comprise of 367 short stay serviced apartments plus 3,900m2 of ground floor commercial lots with an approximate end value of $300 million. Subject to approvals, the Company anticipates to commence marketing and construction in early 2013. APPROXIMATE PROJECT VALUE / $300 million ESTIMATED COMPLETION DATE / Financial Year 2015 |pelago east |port hedland finbar regional 29 30 commercial investments gateway fairlanes office pelago west commercial 59 Albany Highway, Victoria Park COMPANY NAME / 59 Albany Highway Pty Ltd PROJECT / 7 level office building with ground floor retail STATUS / 99% Leased, 9 year WALE NLA / 12,828m2 VALUE / $68 million ($46.75 million net of minority interest) PROFIT SHARE / 68.75% Gateway is a 68.75% Joint Venture commercial building located just by the causeway in Victoria Park. The building has a total net lettable area of 12,828m2 over 7 storeys with a book value of $68 million generating approximately $5.1 million per annum. The building is 99% leased. 181 Adelaide Terrace, East Perth COMPANY NAME / 175 Adelaide Terrace Pty Ltd PROJECT / 6 level office building below Fairlanes Residential. 5 levels of office above private lobby with ground floor tenancies STATUS / 1,018m2 retained / 2,364m2 leased / 3,250m2 under offer NLA / 7,687m2 VALUE / $52 million PROFIT SHARE / 100% 23 Sharpe Ave, Pegs Creek COMPANY NAME / Finbar Karratha Pty Ltd PROJECT / Street front commercial below Pelago West Apartments NLA / 1,067m2 STATUS / 564m2 leased VALUE / $11 million ESTIMATED ANNUAL IMPACT ON EBITDA / $800,000 PROFIT SHARE / 100% FINBAR’S ULTIMATE INTEREST / 100% Pelago West contains 8 commercial lots totalling 1,067m2 of NLA with an approximate value of $11 million which the Company will