FY19 FULL YEAR RESULTS 21 August 2019 Aventus Group | Full Year Results | 30 June 2019 |
CONTENTS 03 Financial Growth 04 Strategy 07 Portfolio Highlights 16 Financial Results 22 FY20 Outlook and Guidance 23 Appendices MCGRATHS HILL, SYDNEY
STRONG GROWTH SINCE LISTING LFL Net Operating Income Growth 2 FFO per security (%) (Cents) 3.6% 22.0 3.5% 20.0 3.3% 5.4% 18.4c 3.4% 18.0 CAGR CAGR 1 3.2% 16.0 14.0 3.0% 3.0% 11.7c 3 12.0 2.8% 10.0 Jun-16 Jun-17 Jun-18 Jun-19 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 (Cents) (A$) Distribution per security NAV per security 22.0 3.00 20.0 5.3% $2.42 2.50 6.2% 18.0 16.6c CAGR 1 CAGR 16.0 $2.02 2.00 14.0 12.0 10.3c 4 1.50 10.0 8.0 1.00 Jun-16 Jun-17 Jun-18 Jun-19 Jun-16 Jun-17 Jun-18 Jun-19 1. Computed based on annualised figure for Jun 2016 period due to listing on 20 Oct 2015 2. LFL Net Operating Income growth are annual rates recorded on rolling semi-annual time periods 3. Reflects actual FFO per security achieved in a partial year due to listing on 20 Oct 2015 4. Reflects actual distribution per security achieved in a partial year due to listing on 20 Oct 2015 Aventus Group | Full Year Results | 30 June 2019 | 3
DELIVERING ON STRATEGY SINCE IPO Aventus Group 1 continues to implement its four key growth initiatives to drive sustainable earnings growth and long- term value creation Driving Asset Consolidation Development Pipeline 2 Capital Management 2 Performance 2 Opportunities 2 100% cash covered Accelerated like-for-like NOI Greatest large format retail 16,900 sqm of GLA created distributions growth to 3.5% in FY19 market share of 22% in $85m+ invested across more dominant centres 3 Diversified and lengthened Achieved 98%+ average than 17 development projects $720m of capital transactions debt facilities to 4.1 years occupancy NSW government planning since IPO including 8 Low cost of debt of 3.5% Boosted everyday needs acquisitions and 2 divestments reforms enhance flexibility whilst mitigating interest rate category to 38% of portfolio of use 43% of Sydney catchment volatility by gross income coverage area 4 1. “Aventus Group” will be referred to as “Aventus” throughout the presentation 2. All figures reported since IPO in Oct 2015 3. For LFR centres larger than 25,000 sqm. Deep End Services as at 1 August 2019; by GLA. Excluding the former Masters Home Improvement tenancies 4. Source: Deep End, as at 2017 Aventus Group | Full Year Results | 30 June 2019 | 4
CREATING DOMINANT CENTRES Significant Asset Value Development Opportunity Average centre value Average land size $99m 60,000 sqm 53% from $65m 1 9% from 55,000 sqm 2 Comparison Shopping Critical Mass Average centre GLA Average tenants per centre 26,750 sqm 30 13% from 23,632 sqm 2 24% from 24 per centre 2 1. Since IPO in Oct 2015 2. Since June 2016 Aventus Group | Full Year Results | 30 June 2019 | 5
PERFORMANCE DELIVERS ENHANCED RETURNS 1 18.4 16.6 $85m 5 cents cents Valuation Uplift Driven 2 FFO per security Distribution per security Highlights by Income Growth 3 3 1.8% from 16.3 cents 1.7% from 18.1 cents 4.1 $96m 3.5% years FFO Weighted Financial Average Cost of Debt Weighted Average Debt Expiry Management 3 8.2% from $89m 4 0.8 years since Jun 2018 3.5% 98.4% $2.42 Like-for-like NOI growth Consistently High NAV per security Portfolio 3 4 Occupancy 6.1% from 3.3% 1.7% from $2.38 Performance 1. All metrics as at 30 Jun 2019 2. Based on a weighted average number of securities of 523m over the twelve months ended 30 Jun 2019 3. For the twelve months ended 30 Jun 2018 4. As of 30 Jun 2018 5. Movement excludes capitalised expenditure and non-cash accounting adjustments over the 12 months to 30 Jun 2019 Aventus Group | Full Year Results | 30 June 2019 | 6
PORTFOLIO HIGHLIGHTS Aventus Group | Full Year Results | 30 June 2019 | EPPING, MELBOURNE
1 DRIVING SOLID ASSET PERFORMANCE 141 leasing deals across Assets under management 108,000 sqm of $2.1bn GLA 6 4 From $2.0bn With positive leasing spreads and low incentives Increased average Total land area Average Portfolio centre value to 1,200,000 Capitalisation Rate $99m 6.7% sqm 53% since listing Unchanged Site cover ratio of only 45% in Oct 2015 2,3 Everyday-Needs tenants National retailers 38% 5 87% More than 50% of new leases were in this category 1. All metrics as at 30 Jun 2019 2. Everyday-Needs tenants includes food & beverage, supermarkets, liquor & convenience, services, health & wellbeing, automotive, office supplies, discount variety, pets 3. By gross income 4. As at 30 Jun 2018, includes third party management of the centre known as Kotara Home (North) 5. By GLA 6. For the 12 months to 30 Jun 2019 Aventus Group | Full Year Results | 30 June 2019 | 8
GROWING EXPOSURE TO EVERYDAY-NEEDS CATEGORY 1 283 Everyday-Needs tenants make up the largest category in the portfolio (38% by gross income) More than 50% of new leases in FY19 were from the Everyday-Needs category 33 new tenants were introduced to the portfolio over FY19 Everyday-Needs (38%) 2 Furniture and Bedding (31%) 31% 38% 11% Electrical (11%) 10% 10% Hardware and Coverings (10%) 3 Homewares (10%) 1. Percentages based on gross income 2. Everyday-Needs tenants include food & beverage, supermarkets, liquor & convenience, services, health & wellbeing, automotive, office supplies, discount variety, pets 3. Includes garden Aventus Group | Full Year Results | 30 June 2019 | 9
PROACTIVE LEASING DRIVES STRONG INCOME GROWTH Average Rent Per Square Metre vs. WALE Achieved 3.5% like-for-like Net Operating Income (NOI) growth for FY19 (compared to 3.3% in FY18) 320 311 304 86% of leases have annual fixed (predominantly 3-5% 296 5.5 293 p.a.) or CPI rent increases 1 with highest proportion of 282 280 269 annual fixed increases (65%) achieved since IPO 4.5 Years 256 ($) Stable and staggered Weighted Average Lease Expiry (WALE) of 4.0 years 1 240 3.5 4.1 4.1 4.3 4.2 4.1 4.1 4.0 The recent Supreme Court judgement on the former Masters tenancy at Cranbourne does not affect the 200 2.5 income guarantee by Woolworths Limited Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 WALE Average Rent Per Square Metre Annual Rent Increases 1 Staggered Lease Expiry Profile 2 80% 25.0% 65% 63% 61% 60% 59% 57% 20.0% 60% 50% 50% 16% 15.0% 12% 12% 40% 11% 11% 11% 10% 10% 30% 28% 28% 28% 25% 24% 10.0% 21% 21% 5% 20% 5.0% 22% 20% 2% 15% 16% 14% 15% 15% 13% 0% 0.0% Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Fixed CPI Market/expiry/other 3 1. As at 30 Jun 2019. By gross rent 2. As at 30 Jun 2019. Holdover tenancies as at 30 Jun 2019 treated as FY20 expiries and by GLA 3. Includes market reviews, options, expiries, holdovers and vacancies Aventus Group | Full Year Results | 30 June 2019 | 10
DOMINANT CENTRES UNDERPIN CONSISTENTLY HIGH OCCUPANCY Rent Benchmarks Established track record of outperforming market occupancy Between Retail Subsectors 5 High occupancy of 98.4% achieved, including centres CBD $2,897 under development and a minimal holdover rate of 1% 1 Regional $1,731 Positive leasing spreads and low incentives achieved Sub-regional $984 Large format retail rent levels are substantially more Neighbourhood $798 affordable compared to other retail subsectors Large Format Retail $260 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Average Gross Rent / sqm p.a 9% 25 IPO 2 8.1% 8% 7.2% 20 6.5% 7% 6.1% 6.0% 5.8% 5.8% 5.6% Number of centres 6% Vacancy 5.0% 15 5% 4.4% 4.3% 4% 3.8% 3.1% 10 2.9% 2.6% 3% 2.3% 2.0% 1.7% 1.6% 1.6% 2% 1.3% 5 1.2% 1% 0% 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Number of LFR centres in the Aventus Portfolio National Average Vacancy 3 Aventus Portfolio Vacancy 4 1. Excluding centres under development, calculation based on both income and GLA 2. IPO at Oct 2015 based on Jun 2015 metrics 3. Source: Deep End Services (multi-tenanted centres larger than 10,000 sqm. Excluding the former Masters Home Improvement tenancies); by GLA 4. Historical metrics exclude centres prior to acquisition by Aventus 5. Source: JLL Research. Reflects specialty rents for all sub-sectors except Large Format Retail. Rents as at 2Q19 Aventus Group | Full Year Results | 30 June 2019 | 11
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