SLIDE 1
Annual General Meeting
27 November 2009
SLIDE 2 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.
SLIDE 3
Annual General Meeting
Chairman’s Address Seng Huang Lee
SLIDE 4
Annual General Meeting
Managing Director and CEO Report Peter Brown
SLIDE 5
- About FKP
- Financials
- Business Overview
- Outlook
SLIDE 6 About FKP
Over
6,000
land lots
12,500
residents
in our retirement communities
$2b
funds under management
urban renewal
developments at transport hubs significant
reduction
in operating costs
30+
years
history
diversified
property company
quality residential
asset base
28% debt
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SLIDE 7
- FKP now benefits from a strong financial position
- Stability of retirement operations and its cash flow
- Extended or restructured $1.1 billion of debt facilities – gearing 28%
- Realised $500m of non-core and trading asset sales since mid 2008
- Significant reductions in operating costs
- FKP’s strategy positions it well to deliver growth
- Diversity of business segments
- Diversity of geographic spread
- Integrated business model
- Balance of recurring and non-recurring income
- Quality Asset Base
- Retirement industry leader - 10,200 units
- Residential land – 6,000 + lots (includes joint ventures)
- Residential apartments pipeline – 3,000 + units (includes joint ventures and retirements)
Overview
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SLIDE 8 Positioned for residential recovery
- FKP is set to capitalise on the
recovery cycle with significant leverage to the residential sector through its retirement assets, masterplanned communities and apartment developments
- Total residential exposure of FKP’s
development pipeline is 95%1
Residential Apartments 21% Residential Land 59% Retirement 15% Commercial & Industrial 5%
Development Pipeline
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1 Measured as a percentage of June 2009 inventory, including retirement, excluding Energex (sold after
balance date)
SLIDE 9 Financials
- FY09 operating profit of $78.6m – within guidance
- Full year statutory result of $319.4m loss, consistent with guidance
- Operating EPS of 7.0 cps (pro forma for full year impact of July 2009 Entitlement
Offer)
- As at 31 July 2009 gearing1 is 28%
1 Net bank debt to assets net of resident loans
Recurring Income Divisional Operating Profit
Trusts and Investments 16% Retirement 72% Funds Management 1% Land 2% Development 9% Non-recurring 12% Recurring 88%
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SLIDE 10 High Quality Assets
management
- Joint fund manager of RVG,
largest retirement fund in the combined Australia and NZ market
Property Trust
Investment & Funds Management Commercial & Industrial
creating integrated work, retail, storage and utility spaces and facilities
diversification
remaining
- Sites located in attractive
and diversified growth corridors
sites in Brisbane and Melbourne
Residential Communities
- Leading retirement brand –
”Aveo – Live Well”
retirement villages
villages for Retirement Villages Group (RVG) (over 4,000 units)
development
Retirement
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SLIDE 11 Our Business - Retirement Operations
– Difficult year finished on a high note with strong June 2009 quarter – Positive momentum continuing into first quarter of FY10 – Average portfolio price growth of 6%
- Budgeting for significant lift in cash
DMF / capital gain in FY10
- Retirement operations met sales budget
for the first quarter and is currently on track to meet first half budget
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SLIDE 12 Our Business - Retirement Operations
- Prime locations have allowed sustained
long-term growth since inception of villages
- FKP’s retirement village portfolio is
distinguished by its geographical presence in strong growth states (emphasis on Queensland and South Australia) and concentration in capital city locations
Gold & Sunshine Coast 19% Regional Areas 4% State Capitals 77%
Location of Villages
North Queensland FKP: 143 units South East Queensland / Northern New South Wales FKP: 3,720 units RVG: 374 Sydney FKP: 906 units RVG: 649 Canberra RVG: 126 units Melbourne FKP: 150 units RVG: 2,881 Hobart FKP: 157 units Adelaide FKP: 1136 units
FKP’s Retirement Assets
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SLIDE 13 Our Business - Residential Communities
− First stages of Point Cook under construction with >200 pre-sales − Peregian Springs / Ridges impacted by slowdown, but 2H stronger than 1H
− SL8 development completed and substantially sold − Concentration on clearing inventory to recycle capital
- Quality urban sites being re-weighted
towards residential
- Rochedale approvals expected in coming
months
- Aerial sales and marketing launched this
week
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SLIDE 14 Our Business - Residential Communities
Land Medium Density Development Point Cook: 2,300 lots1 Rochedale: 1,100 lots Newstead: 700 units Albion: 330 units Milton: 300 units Currumbin, 500 lots Camberwell: 140 units Mulpha FKP: 330 units + 900 lots Peregian Springs / Ridges: 1,450 lots
Residential Development Land Bank
1 Over 200 lots pre-sold
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SLIDE 15 Our Business - Commercial and Industrial
− Major commercial projects successfully sold – TAC and Energex (post balance date) − Concentration on clearing inventory to recycle capital
- The commercial and industrial markets
remain challenging, however the first quarter FY10 has seen a good increase in enquiry levels for commercial and industrial space
- The commercial and industrial team is
asset managing all properties in the Property Trust and managed funds
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SLIDE 16 Our Business - Funds Management
− Core Plus Funds capital position stable. All properties externally valued at June 2009 and debt is comfortably within LVR − RVG was recapitalised, and in common with the FKP portfolio is seeing an improved trend in operations
- Executing repositioning strategies on a number of
properties within the Core Plus funds
Total Funds Under Management - $2.0b1, 2
1 FKP is joint fund manager with a 50% interest in the Retirement Villages Group fund manager 2 As at 30 June 2009
Core Plus Fund Core Plus Two Fund FKP Property Trust Retirement Villages Group
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SLIDE 17 Our Business - Trust and Investments
114.4 16% Retirement Villages Group 9.1 28% FKP Core Plus Fund Two 15.7 15% FKP Core Plus Fund 532.4 30.5 362.7 Book Value (A$m)1 Holding1 Portfolio Investments 50% 100% Total US Senior Living Group FKP Property Trust
1 As at 30 June 2009 2 By asset value after estimated non-operating items
– Successful completion of Browns Plains Bulky Goods and Town Centre – US Senior Living investment performed satisfactorily in difficult US climate, and has not required any base currency impairment charge
- Successful sale of Redbank Shopping
Centre settled in October. Proceeds have further reduced debt levels
- Property Trust portfolio well diversified
- Management focus on leasing profile
- Major refurbishment work completed at
Clarence St
FKP Property Trust Diversification1,2
QLD 38% VIC 10% NSW 52% Retail 44% Commercial 56%
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SLIDE 18 Outlook
- Caution required given the impact of the financial crisis, but
FY10 operating profit forecast to be higher
- Cash flow from operations also forecast to be higher in FY10
- Land set to re-emerge as strong contributor to profit and
cash flow
- FKP is geared for growth, with a strong balance sheet and
- utstanding assets, and is set to capitalise on the recovery
cycle with significant leverage to the residential sector
- Opportunities opening up in the retirement space to further
expand market leadership
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SLIDE 19
Annual General Meeting
Resolutions
SLIDE 20
Annual General Meeting
Resolution 1 That Mr Seng Huang Lee, who retires by rotation in accordance with clause 10.3 of the Company’s Constitution, is re-elected as a director. Proxies Received For 801,947,251 Against 46,863,433 Open 4,934,033 Abstain 4,415,113
SLIDE 21
Annual General Meeting
Resolution 2 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 844,310,179 Against 4,440,335 Open 5,014,908 Abstain 4,394,408
SLIDE 22 Annual General Meeting
Resolution 3 That Mr Gregory Dyer, who retires in accordance with clause 10.8
- f the Company’s Constitution, is re-elected as a director.
Proxies Received For 804,369,221 Against 44,328,493 Open 5,014,908 Abstain 4,447,208
SLIDE 23
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 2009 be adopted. Proxies Received For 708,488,801 Against 137,148,306 Open 4,587,813 Abstain 7,877,047
SLIDE 24
Annual General Meeting
Questions
SLIDE 25
Annual General Meeting
Thank you
