17
Becton Investment Management Becton Property Group 3 rd Annual General Meeting 29 October 2007 For personal use only
Becton Investment Management
Becton Property Group3rd Annual General Meeting
29 October 2007
For
per
sona
l use
onl
y
Becton Investment Management
• Welcome by Max Beck, Chairman• Meeting opened – Brian Pollock, Non-Exec Director• Managing Director’s Address – Hamish Macdonald• Business of the Meeting – chaired by Brian Pollock• Meeting closed by Brian Pollock
Agenda
For
per
sona
l use
onl
y
Becton Investment Management
WelcomeMax Beck, Chairman
For
per
sona
l use
onl
y
Becton Investment Management
Meeting openedBrian Pollock, Non-executive Director
For
per
sona
l use
onl
y
Becton Investment Management
Managing Director’s AddressHamish Macdonald, CEO & MD
For
per
sona
l use
onl
y
Becton Investment Management
Managing Director’s Address Securityholder Returns
Overview
• The total security holder returns has been 134% in FY07
• For investors who participated in the IPO in July 2005, the total security holder return until now has been 160%
Becton Security Price Since July 2006
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
03-Ju
l-06
03-A
ug-0
603
-Sep
-06
03-O
ct-06
03-N
ov-0
603
-Dec
-06
03-Ja
n-07
03-F
eb-0
703
-Mar-
0703
-Apr-
0703
-May
-07
03-Ju
n-07
03-Ju
l-07
03-A
ug-0
703
-Sep
-07
03-O
ct-07
For
per
sona
l use
onl
y
Becton Investment Management
• Successfully transformed into a stapled entity• Strong foundations established for growth • All businesses performing strongly• NPAT from continuing operations $63.1 million• Exceeded FY07 prospectus forecasts by 19%• Strong start to FY08 with a number of highly strategic acquisitions
Maximising value through integration
Managing Director’s Address Highlights
For
per
sona
l use
onl
y
Becton Investment Management
A fully integrated property group… …focussed on:
• integration of our capabilities
• capturing all profits
• creating recurring earnings through management fees
• de-risking our earnings
• return on equity through co-investment
• total security holder return
Profit and value are maximised when our businesses work together
Development & Construction
RetirementFunds
Management
Value maximised through generation of recurring income
Managing Director’s Address Strategy
For
per
sona
l use
onl
y
Becton Investment Management
• $2.9 billion pipeline diverse by geography, sector and timing of delivery
• Updates:– Fincorp and Estate portfolio – Becton in control of all projects and transition smooth– Bonnyrigg – Works on site are programmed to commence in early 2009– Development Fund No. 1 – launched and equity raising open
Pipeline larger and more diverse with strong focus on retirement and commercial
$12.0$14.0
$28.2
$22.1
Prospectus
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
FY04 FY05 FY06 FY07
Mill
ion
EBIT – $ Million
$600 $600 $678
$2,900
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
FY04 FY05 FY06 FY07
Mill
ion
Development pipeline
Managing Director’s Address Development & Construction
For
per
sona
l use
onl
y
Becton Investment Management
Managing Director’s Address Development Fund No.1
Highlights• Four of Becton’s best projects form the fund• Alignment of interests due to 40% co-
investment by Becton • Target internal rate of return of 15% p.a.
(post fees pre tax)• 4 year fund with 73% of initial $1 invested
returned within 2 years• Diversified by project, timing, geography
and sector (refer table)Capital Raising• $36m equity raising closes early Dec.• Priority given to existing Becton BEC and
BECG investors who are wholesale or sophisticated investors
Becton’s first development fund
For
per
sona
l use
onl
y
Becton Investment Management
$1.6
$3.5
$7.4
$10.7
Pro
spectu
s$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
FY04 FY05 FY06 FY07
Mill
ion
EBIT – $ Million
• Strong EBIT growth with predictable future earnings
• Development pipeline > 1,000 dwellings
• Focus on greenfield development, in particular, in premium suburbs
Development pipeline underpins growth
Managing Director’s Address Retirement
Malvern
BrightonN
CITY
PORT PHILLIP BAY
Beaumaris
East Malvern
Hawthorn
Caulfield
Cluster of Retirement Sites in inner Melbourne
For
per
sona
l use
onl
y
Becton Investment Management
$0.4
$2.5
$6.2
$17.4
Prospectus
$0.0$2.0$4.0$6.0$8.0
$10.0$12.0$14.0$16.0$18.0$20.0
FY04 FY05 FY06 FY07
Mill
ion
• EBIT of $17.4m was 181% higher than prior period and 45% higher than prospectus
• Total returns to fund investors averaging > 20% in FY07
• YTD October FY08 equity inflows 51% higher than prior period – track record and platform penetration a key driver of the growth
• YTD October FY08 acquisitions (settled and contracted) at $234m
Profits doubled each year for past three years demonstrating scalability of business
EBIT – $ Million Equity Inflows
Managing Director’s Address Funds Management
$69.0
$127.0
$58.0
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
FY06 FY07 YTD Oct. FY08
Mill
ion
For
per
sona
l use
onl
y
Becton Investment Management
74
7.7%
6.85%
$189.3m
Average gearing
Average vacancy
Weighted average lease expiry
Number of tenants
48.7%
4.8%
3.66 years
389
Diversification of portfolio of direct property investments
Number of properties
Average distribution yield
Average property capitalisation rate
Value of investment
Managing Director’s Address Property Investment
For
per
sona
l use
onl
y
Becton Investment Management
• EPS of 30.2 cents – 19% higher than prospectus• DPS of 15.5 cents – 8% higher than prospectus. 15.5 cents was a 7.5 month distribution
(i.e. from mid-November 2006). Annualised = 24.8 cents• Distribution was paid on 17 September • Distribution Reinvestment Plan (DRP) introduced for FY07 distribution – 20% participation
Prospectus targets easily achieved
$0.253$0.302
$0.00
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
FY07 Prospectus FY07 Actual
$0.144 $0.155
$0.00$0.02$0.04$0.06$0.08$0.10$0.12$0.14$0.16$0.18
FY07 Prospectus FY07 Actual
Earnings per security - excludes revaluation gains Distribution per security
19% higher
Managing Director’s Address EPS and DPS
For
per
sona
l use
onl
y
Becton Investment Management
• A strong team of people• Strategy starting to deliver benefits• Strong pipeline• Operationally efficient
Well placed to continue delivering value to security holders in FY08
Managing Director’s Address Outlook
For
per
sona
l use
onl
y
Becton Investment Management
Business of the Meeting
For
per
sona
l use
onl
y
Becton Investment Management
Meeting Closed
For
per
sona
l use
onl
y
