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Annual General Meeting 25 November 2011
Annual General Meeting 25 November 2011
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Annual General Meeting
Disclaimer The content of this presentation is for general information only. It does not take into account your objectives, financial situation or needs. Before acting on any information contained in this presentation, you should consider its appropriateness, having regard to your objectives, financial situation and needs. FKP Property Group, its directors, employees and advisers do not represent or warrant that the information is or will remain accurate, reliable or complete. Whilst every effort has been taken to ensure that any forecasts contained in this presentation are based on reasonable assumptions, actual results may vary from those forecast. To the extent permitted by law, FKP Property Group, its related bodies corporate, their directors, employees and agents exclude all liability in respect of any loss arising in any way (including by way of fault or negligence) from reliance on the information contained in this presentation or otherwise arising in connection with this presentation.
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Chairman’s Address
Seng Huang Lee
Annual General Meeting
Aerial Camberwell Junction, VIC
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Managing Director and CEO Report
Peter Brown
Annual General Meeting
Albion Mill Albion, QLD
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Delivering growth from a diverse national platform
FY11 Key Achievements: $121.0 million of underlying profit after tax, in
line with full year guidance of a 10-15% increase on FY10 underlying profit
Record contributions from both Residential Communities and Retirement divisions of $36.4 million and $46.3 million1 respectively
Launched The Milton and The Rochedale Estates in Queensland and Luxe in NSW
Outlook: Well positioned to deliver growth with some of
the best projects in the country underway
Settlements at The Rochedale Estates and Aerial expected to add to earnings
Commenced construction at Luxe in Woolloomooloo, and Stage 2 at The Gasworks in Brisbane
Commenced refurbishment of 465 Victoria Avenue, Chatswood
Launched the first stage of our urban renewal project at the Albion Flour Mill – The Hudson
LUXE Woolloomooloo, NSW
1 Retirement operations, excluding retirement valuation of $79.6 million
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Key Financials
$121.0 million of underlying profit after tax
Full year statutory profit after tax of $82.3 million, mainly impacted by changes in fair value
Distribution up 100% at 3.0 cents per stapled security
Underlying EPS of 10.3cps
Gearing steady at 28.9%
Recurring income 60% in line with 50:50 split over cycle
1 Underlying profit reflects statutory profit adjusted in accordance with AICD/Finsia principles to reflect the Directors’ assessment of the result for the ongoing business activities of the Group.
Retirement 61%
Residential Communities
18% Commercial and
Industrial 13%
Funds Management and Investments
8%
Divisional Underlying Profit1
The Milton Milton, QLD
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Retirement
Record divisional profit contribution up 15% on FY10 to $46.3 million
Result achieved through a mix of margin improvements and cost control
Resale levels are down reflecting the general slowdown in the residential market
Focus continues to be on improving the underlying cash generation of retirement assets through active management
Continued rollout of the retirement development pipeline and unit buyback/refurbishment program underway
Average DMF/CG per Transaction and Transaction Margin
23%
27%30% 31%
36%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
20,000
40,000
60,000
80,000
100,000
FY07 FY08 FY09 FY10 FY11
Margin (%)Avg DMF / CG ($)
Avg DMF / CG ($) CAGR - 22%
Sackville Grange Kew, VIC
Manors of Mosman Mosman, NSW
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Retirement – Australia and beyond
FKP
North Queensland
South East Queensland / Northern New South Wales
Sydney
Melbourne
Hobart
Adelaide
RVG
FKP has over 20 years experience in the retirement villages sector and is one of Australia’s largest retirement village operators with 75 villages and approximately 10,000 units under management
Through the ‘Aveo - Live Well’ brand, FKP villages are widely known and trusted throughout Australia’s senior population
Currently, approximately 12,500 residents reside in our villages
Aveo Units Existing
FKP 6,259
Managed for RVG - Australia 3,527
RVG – New Zealand1 3,149
Total 12,935
Auckland
Christchurch
1 FKP does not manage the 3,149 RVG units in New Zealand
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Residential Communities
Record contribution of $36.4 million up 8% on FY10
Land lot sales increased by 2% to 443 on FY10, built product sales increased by 15% to 69
Works completed for initial stages at The Rochedale Estates with over 100 pre-sales made to date
Continued focus on achieving the pre-approval targets at The Milton and Albion Mill
FY 09 FY 10 FY 11 FY 12 FY 13 FY 14+
Peregian Springs / Ridges
Saltwater Coast
Peregian Springs / Ridges
Peregian Springs / Ridges
Peregian Springs / Ridges
Peregian Springs / Ridges
Peregian Springs / Ridges
Saltwater Coast Saltwater Coast Saltwater Coast Saltwater Coast
A2
Mulgoa Rise Mulgoa Rise Mulgoa Rise
The Rochedale Estates
The Rochedale Estates
Aerial Luxe The Gasworks
The Rochedale Estates
The Milton
Albion Mill
Major Project Profit Contribution
Albion Mill Albion, QLD
Bella Vista Waters Baulkham Hills, NSW Saltwater Coast Point Cook, VIC
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Located in Camberwell Junction, Aerial will be one of Melbourne’s most elegant and dynamic architectural statements
Unique elliptical design by award winning architects, Wood Marsh
Consists of 144 apartments and ground floor retail – ‘Aerial Walk’
Strong sales have been achieved at Aerial, with approximately 85% of the project sold to date
The heritage listed ES&A bank building located within the site will be transformed into a boutique restaurant
Construction on schedule for completion in May 2012
Aerial, Camberwell Junction
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LUXE, Woolloomooloo
Luxe is a premium 7 level boutique development just minutes from the Sydney CBD in cosmopolitan Woolloomooloo with spectacular views of the Sydney city skyline and The Domain parklands
Features 77 one, two and three bedroom residences with a current price range of $645,000 to $2.8 million
Construction underway with in-ground works
60% of residential units sold to date
Estimated completion in FY13
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The Milton, Milton
The Milton is an iconic mixed use development on the fringe of the Brisbane CBD that will elevate residential, commercial and retail opportunities to a new level
Launched in September 2010
298 units with a price range of $387,000 to $938,000
Average revenue per sqm of $8,000
Gross realisation of $200 million
Approximately 40% sold to date
Construction expected to commence in mid 2012, with settlement mid to late 2014
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The Rochedale Estates, Rochedale
The Rochedale Estates is one of Brisbane’s newest and largest masterplanned residential communities with a range of housing options in a premium setting
Over 100 lots sold to date, approximately 950 lots remain
Located 12km from the Brisbane CBD
Direct access to Gateway Motorway and South East Freeway making travel to the CBD, Airport, Ipswich or Gold/Sunshine Coast convenient
Construction of Queensland’s biggest builder display village underway
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Saltwater Coast, Point Cook
Saltwater Coast is a unique and premium masterplanned community located 20km from the Melbourne CBD
Approximately 2,300 lots with a diversity of lot sizes, 641 lots sold to date
Community development includes a lifestyle centre, shopping centre, sports fields, parks, wetlands and a school
Strong price growth as illustrated by ‘lot for lot’ comparisons on an average 448sqm block which has increased in price from $198,000 to $300,000
Price growth of 50% since inception
First residents moved into the community in November 2010
Completed construction of the residents only Lifestyle Centre
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Commercial and Industrial
Divisional profit contribution of $29.5 million
Trading contribution of $11.8 million mainly attributable to completion of additional contracts associated with Energex (and its fit out)
Recurring profit in line with FY10
Continued focus on capital efficiency and maximising asset values
Recently commenced refurbishment of 465 Victoria Avenue, Chatswood 465 Victoria Avenue Chatswood, NSW
Circa Norwest, NSW Energex, The Gasworks Newstead, QLD
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The Gasworks, Newstead
The Gasworks is one of Brisbane’s most anticipated sustainable urban revitalisation projects spanning over 6 hectares in Newstead River Park
Mixed use development including residential, retail and commercial components
Approximate total gross realisation of $1.025 billion
185,000sqm of gross floor area – preliminary approval
Approximately 900 apartments
Approximately 60,000sqm of office net lettable area
Approximately 20,000sqm of retail net lettable area
Construction has commenced on Stage 2
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The Gasworks, Newstead
The Gasworks: Stage 2
Approximately 8,000sqm retail NLA including a full line supermarket
Approximately 9,000sqm office NLA (targeting 5 Star Green Star office)
Construction has commenced targeting completion in FY13 with estimated end value of $130 million
Approx 25% of commercial NLA and 65% of retail NLA already allocated
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Funds Management and Investments
Contributed $15.8 million for the year
37% decrease due to the strategic decision to wind up the Core Plus Funds and the impact of the disposal of four villages from Retirement Villages Group (RVG)
Core Plus Funds Divestment Program and targeted timing of returns to investors remain on track
RVG contribution impacted by lower volume of sales across the Australian and New Zealand portfolios
Port Bouvard Limited contributed its first earnings due to settlements at their Oceanique apartments
Aveo Concierge Bayside Hampton, VIC
Oceanique Port Bouvard, WA
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Capital Management
Successful completion of the $125 million convertible bond issue in January 2011
Refinancing of the Property Trust and Multi-Option Development facilities on track to be completed before end of 2011
Secured project finance for Aerial and the refinancing of the Wilbow facility
Group gearing steady at 28.9% well below upper limit of 35.0%
Continue to focus on repositioning and divesting non-core commercial and industrial assets
Lifestyle Working Brookvale, NSW
Lexington Corporate Baulkham Hills, NSW Aveo Veronica Gardens Northcote, VIC
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Strategy and Outlook
Retirement: Improving the underlying cash generation of retirement assets through
active management, continuing the rollout of our development pipeline and increasing unit buyback and refurbishment program
Residential Communities: FKP has reweighted its development portfolio towards residential and is now in a
position to deliver further growth from one of Australia’s best development pipelines
Commercial and Industrial: Through re-positioning and divesting non-core commercial assets and recycling
capital to fund our development pipeline we are well placed to unlock growth opportunities and meet demand through our land holdings
Funds Management and Investments: Realising investments in the Core Plus Funds through a number of strategic
asset sales and returning liquidity to investors Close to finalising an agreement with Macquarie Capital Group to become the
sole manager of Retirement Villages Group
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Resolutions
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Annual General Meeting
Resolution 1
That Mr Leonard McKinnon, who retires by rotation in accordance with clause 10.3 of the Company’s Constitution, is re-elected as a director.
Proxies Received
For 690,051,170
Against 24,976,707
Open 18,268,627
Abstain 1,405,870
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Annual General Meeting
Resolution 2
That Mr Gregory Dyer, who retires by rotation in accordance with clause 10.3 of the Company’s Constitution, is re-elected as a director.
Proxies Received
For 693,451,672
Against 21,251,232
Open 18,268,627
Abstain 1,730,843
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Annual General Meeting
Resolution 3
That Mr Mark Jewell, who retires in accordance with clause 10.8 of the Company’s Constitution, is elected as a director.
Proxies Received
For 526,572,153
Against 188,546,519
Open 18,272,627
Abstain 1,311,075
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Annual General Meeting
Resolution 4
That for the purposes of section 250R(2) of the Corporations Act 2001 (C’th) and for all other purposes, the Remuneration Report for the year ended 30 June 2011 be adopted.
Proxies Received
For 603,863,032
Against 41,355,188
Open 17,883,793
Abstain 68,056,537
Excluded 3,543,824
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Annual General Meeting
Resolution 5
That for the purpose of the Corporations Act 2001 (C’th), Listing Rule 10.14 and for all other purposes the issue of 3,000,000 options over stapled securities to Mark Jewell, details of which are set out in the Explanatory Notes to this Notice of Meetings, be approved.
Proxies Received
For 528,377,261
Against 116,544,661
Open 2,412,048
Abstain 69,632,460
Excluded 3,543,824
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Questions
