Annual Results June 2003 Annual Results June 2003
Results/ Highlights L Net profit after tax up 56% to $26.7 million L Annual dividend of 12 cents per share fully franked up 20% L Continued drive towards diversification – recurring income streams 22% of EBIT, geographic spread L Ability to hold profit levels – strategic land holdings; highly skilled team L New Funds Management business Annual Results June 2003
Results/ Highlights L Continuation of conservative financial management – low debt and prudent accounting methods L We have delivered on our promises and outperformed our targets – Chairman’s message at 2002 AGM confirmed our aims were to achieve over 30% net profit growth in 2002/ 03 – we are on track to achieve EPS and dividend growth by at least 10% over the next 4 years Annual Results June 2003
Key Financial Results 2003 2002 Change 49% � L Total Revenue (‘000s) $294,910 $197,888 L Operating profit after 56% � $26,741 $17,090 tax (‘000s) L EPS 56% � 23.53 cents 15.10 cents 20% � L Dividend – full year 12 cents 10 cents L NTA 13% � 153 cents 135 cents L Level of franking 100% 100% L Gearing -54% � 12.1% 26.5% Annual Results June 2003
Sum m ary Balance Sheet 2003 2002 (‘000) (‘000) Current Assets 176,767 170,449 Non Current Assets 120,500 102,052 Total Assets 297,267 272,501 Current Liabilities 80,804 80,857 Non Current Liabilities 40,716 37,767 Total Liabilities 121,520 118,624 Net Assets 175,747 153,877 Contributed Equity 105,485 104,198 Reserves 6,035 7,188 Retained Profits 64,227 42,491 Total Equity 175,747 153,877 Annual Results June 2003
Sum m ary of Each Division’s Contribution to Profit Com m ercial Developm ent Residential Units 17% 21% Land Subdivision 17% Retirem ent - ARH 20% Construction 25% Funds Managem ent Note: No profit from start-up business - Funds Management. Annual Results June 2003
Operational Highlights Retirem ent - Key Points Highlights Highlights L Peregian Springs Retirement Country Club commenced construction L Minkara (Endeavour Lodge) serviced apartments completed construction L Bought remaining 50% of Cleveland Gardens Pty Ltd (Bridgeman Downs and Cleveland Gardens now fully owned) L 87 new units sold for $18.9 million L 214 resales generated $6.1 million in cash DMF (up 60% from 2001/ 02) Outlook Outlook L Rebranding of ARH to come under the FKP banner L Continued development at Peregian Springs, Mingarra, Derwent Waters, Bridgeman Downs, The Domain, Minkara serviced apartments, The Parks Annual Results June 2003
Top 40 Owner/ Operators by Market Share Colour: Owner/Operator Size: Grand Total A R H Forest Place Grand Total PrimeLife Southern Cross A R C Tricare Zig Inge Gandel A R H RBD Henry Kendall 2600 RSL Village Life R A A F A Tarragal Glen PrimeLife Fini Group * (Other) 2200 A R C Zig Inge ARH is Australia’s 1800 largest private RBD 1400 sector owner/ Forest Place Southern Cross R A A F A Tricare operator of Parkland Group RSL Buderim Gardens 1000 Village Baxter Quantivale Gandel Fini Group retirement units, Carlyle Gardens Henry Kendall St Ives Mooltunya Willandra Life Care Services Village Life with 23 villages in 600 Ocean Gardens (Inc) Village Glen Balmoral Gdns Craigcare Omega 5 states totalling Central Coast Rechabites Norfolk Estate SA Earle Haven Preferred Living Environment 2,865 units 200 Bluecare Tarragal Glen Laguna Retirement Estate Tudor Village Mews Walmsley WA Baptist Homes Hazen Pty Ltd accommodating 5 10 15 20 25 30 35 40 45 50 55 60 65 over 3,600 Cumulative Mkt Share % residents. Annual Results June 2003
Operational Highlights Funds Managem ent - Key Points Highlights Highlights L Successful launch of FKP Commercial Property Trust No.1 in December 2002 L $34.5 million units subscribed by 700 investors (60% wholesale, 40% retail investors) L $65.4 million in assets under management L First distribution to investors 12% above forecast – paid distribution of 10.2% annualised - 30 June 2003 Outlook Outlook L Launch of second Property Trust – currently working on passive trust No.2 (approx $100 m) – exploring potential for enhanced trusts L Continue to actively manage FKP Commercial Property Trust No.1 Annual Results June 2003
Operational Highlights Developm ents - Key Points COMMERCIAL COMMERCIAL Highlights Highlights L Sold 120 Edward St, Brisbane for $62 million L Sold Mt Sheridan, Cairns for $19.7 million Outlook Outlook L Acquired new sites that will generate future profits – $90 million Norwest Business Park, Sydney (40,000sqm) – $51 million Milton Rail Station, Brisbane (15,000sqm) – $49 million Gateway Industrial Estate JV, Brisbane (70,000sqm) – $13 million Paradise Road, Brisbane (130,000sqm) Annual Results June 2003
Operational Highlights Developm ents - Key Points RESIDENTIAL APARTMENTS RESIDENTIAL APARTMENTS Highlights Highlights L 212 Margaret ($37 million) - 118 of 136 units sold L Marquis on Main ($40 million) - 35 of 42 units sold L Inn On The Park ($30 million) - 81 of 93 units sold L Macarthur Chambers ($40 million) - 54 of 74 units sold L $108 million in unconditional pre-sales not brought to account Outlook Outlook L Projects under development – Soho ($30 million) - 50 of 92 units sold – Seamark ($30 million) - 57 of 67 units sold (No profits have been brought to account on these projects during 2002/ 03) L Currently seeking residential opportunities in Sydney Annual Results June 2003
Operational Highlights Developm ents - Key Points LAND LAND Highlights Highlights L Peregian Springs - 120 lots sold for $19.1 million L Emmadale Park - 76 lots sold for $4.2 million L Castle Hill - 14 lots sold for $6.2 million L Sold under-performing estates at Teviot Downs, Poona Bay, Cudgerie and Emerald Hills Outlook Outlook L Peregian Springs established as the largest subdivision in the Maroochy and Noosa Shires - Coolum Ridges to come on line L Expansion into Victoria – Diamond Creek, Victoria - 50 lots – Ocean Acres, Torquay - 118 lots L Land bank in excess of 2,7500 lots (approved) – Sunshine Coast, Gladstone, Victoria Annual Results June 2003
Operational Highlights Construction - Key Points Highlights Highlights L Record $108 million turnover L Award winning team - 9 awards this year L Margins maintained at approx. 2002 levels despite difficult trading conditions L 40% of activity from external developers Outlook Outlook L Approx $77 million in projects in hand to be completed 2003/ 04 – Marquis on Main, Soho, Inn on the Park, Seamark, Mingarra, Peregian Springs Retirement Country Club, Derwent Waters, The Domain L Continue to target 30% external works Annual Results June 2003
Corporate Business Structure CEO Development Investment Corporate Support Land Development Management Sales/Marketing Construction Funds Management Retirements Company Secretarial Corporate Services NSW Commercial/ Retirements Construction Acquisitions Investment Investor Relations Finance Industrial/ [internal/external] Retail Qld Qld Apartments Land Administration Funds Placements Operations Legal & Compliance HR Victoria NSW Apartments Apartments Estimating Asset Management Acquisitions IT Retirement Design Facility Management QA Design Funding Packages Annual Results June 2003
Outlook L 2,865 retirement units under management with land to develop an additional 500 L Property Trust No. 1 established and currently working on No. 2 L Total unconditional pre-sales of $142 million with no profit taken up L Land bank in excess of 2,750 lots in key strategic areas L Future $200 million worth of commercial property developments Annual Results June 2003
Outlook 5 YEAR PLAN 5 YEAR PLAN L Become a diversified national property group L Increase recurring income streams – continued growth in retirement division – raising a number of passive funds and investigate more active funds L Profit and dividends to increase a minimum 10% p.a. over the next 4 years L Develop further master planned communities L Queensland development model replicated into NSW and then Victoria Annual Results June 2003
Annual Results June 2003
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