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PEET LIMITED AGM Information 2006
65600_rns_2006-11-14_868238a0-0f31-4ffe-aa13-d3b228a4858e.pdf
AGM Information
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Perth Level 7, 200 St Georges Terrace, Perth WA 6000 PO Box 7224 Cloisters Square WA 6850 Telephone (08) 9420 1111 Facsimile (08) 9481 4712 Email [email protected]
15 November 2006
Australian Stock Exchange Limited Exchange Centre Level 4 20 Bridge Street SYDNEY NSW 2000
Dear Sir / Madam
ANNUAL GENERAL MEETING - 15 NOVEMBER 2006
Please find attached the following information being presented at today's Annual General Meeting:
- Chairman's address to the AGM
- Managing Director's address to the AGM $\bullet$
Yours sincerely PEET LIMITED
$\overline{\mathscr{L}}$ 4. a karamana ya kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa Kati wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa wa kuwa w
DOM SCAFETTA COMPANY SECRETARY
Perth Level 7, 200 St Georges Terrace, Perth WA 6000 PO Box 7224 Cloisters Square WA 6850 Telephone (08) 9420 1111 Facsimile (08) 9481 4712 Email [email protected]
Chairman's Address
Annual General Meeting - 15 November 2006
I am very pleased to report it has been another year of record earnings for Peet and I trust all our shareholders are satisfied with our performance and particularly our financial results.
Peet Limited has continued to grow our national, diversified property group as asset managers and funds managers and we have successfully fulfilled our commitment to maintain our track record of delivering sound performance – sharing prosperity through property with our shareholders and investors via company shares and our range of funds management products.
The standards we apply to the conduct of our business affirm Peet as a modern, dynamic organisation backed by our solid management practices, strong financial reputation and valuable heritage.
PROFITS AND DIVIDENDS
Ladies and gentlemen, we have delivered another result of consecutive year-on-year net profit after tax growth – an increase of 24 percent to $36.8 million with a revenue increase of 57.1 per cent to $113.6 million and earnings per share increasing by 24 percent to 18.4 cents per share.
Our strategy of national diversification gives us confidence in being well positioned to take advantage of the best of market conditions throughout Australia as is demonstrated by the fact that during the 2006 financial year, 53 per cent of earnings before tax was delivered by our operations in Victoria and Queensland and we see this trend continuing.
Perth Level 7, 200 St Georges Terrace, Perth WA 6000 PO Box 7224 Cloisters Square WA 6850 Telephone (08) 9420 1111 Facsimile (08) 9481 4712 Email [email protected]
And our success has, of course, been passed onto all our shareholders with the dividend per share increased by 17 percent to 17 cents per share fully franked or 24.3 cents per share before tax. This resulted in total dividends paid in respect to the 2005/2006 financial year of $34 million fully franked.
Another major aspect of Peet's pleasing performance was that the Company's own land assets, as independently valued, increased by 33 percent to $325 million.
GROUP ACTIVITY INDICATOR: TOTAL PROFITS MANAGED BY THE COMPANY $160 MILLION
As a demonstration of the scope of the Company's activities and our financial and asset management skills the total audited before tax profits achieved across the Peet Group, including managed syndicates were approximately $160 million on the back of total revenues in excess of $355 million.
INSTITUTIONAL PLACEMENT AND MARKET CAPITALISATION
I am pleased to announce that on Monday evening, Peet successfully completed an institutional placement that raised $82M from the issue of 20M shares.
We are very pleased with the institutional support shown to us. There was strong demand and we were able to bring a large number of new institutional investors onto our register, including some of the most well known in Australia. This is an important phase in our growth.
The equity raised will strengthen the company's capital position to enable:
- Acceleration of growth of our funds management business; $(i)$
- Growth of new profit streams by funding diversified development projects; and $(ii)$
- $(iii)$ The ability to capitalise on larger acquisition opportunities.
Perth Level 7, 200 St Georges Terrace, Perth WA 6000 PO Box 7224 Cloisters Square WA 6850 Telephone (08) 9420 1111 Facsimile (08) 9481 4712 Email [email protected]
In addition, existing shareholders will be offered an entitlement of up to $5,000 worth of shares at the book build price of $4.10, which represented a 4.65% discount to Monday's close price. The details of this offer will be forwarded to shareholders in due course.
On current pricing, and allowing for the increased number of shares, it is anticipated that the company's market capitalisation will be in excess of $900 million.
We have a strong and diverse business model and a high calibre management team. We continue to be confident of growth as we progress through 2007.
PROFIT GUIDANCE 2007
It is envisaged that our core operations of property funds management and property asset management will continue to drive a solid performance in 2006/07. We are targeting earnings per share growth of 15 per cent for the 2007 financial year, including the new shares exceeding our underlying long-term target of 10 per cent growth.
Our continued earnings growth guidance is founded upon the strength and quality of our land bank and our various diversification strategies, including commercial, retail and retirement opportunities within our estates.
LAND BANK - c31, 000
Peet's impressive land bank is fundamental to our ongoing success and I'm pleased to say that during the year, the Company has increased its land bank - carefully and strategically acquiring parcels of well-located land with solid potential.
At today's date, the Company's land bank has increased to approximately 31,000 lots with end total sales values of some $5.4 billion expressed in today's prices.
Perth Level 7, 200 St Georges Terrace, Perth WA 6000 PO Box 7224 Cloisters Square WA 6850 Telephone (08) 9420 1111 Facsimile (08) 9481 4712 Email [email protected]
The strength of our land bank gives us many strategic opportunities, including leverage into an expanded range of asset management and funds management opportunities.
EXPANDED OPERATIONS
During the year, Peet has continued to successfully manage the diversification and expansion of its business operations.
Key activities included new property acquisitions and syndicates as well as the value adding opportunities in our estates being delivered by the new commercial, retirement and residential built form divisions.
Peet Income Property Fund
The Peet Income Property Fund completed its first year with a combined total performance of more than 14 per cent in income and capital growth, expanded its portfolio of assets with the acquisition of strategically located properties in Perth and Darwin.
Peet Retirement
Peet's plans to develop a stylish retirement community at our award-winning Lakelands Private Estate in Mandurah, Western Australia, are moving along nicely with construction expected to commence by mid next year. Further retirement projects are planned for other Peet estates in Western Australia, Victoria and Queensland.
Peet Commercial
Peet's commercial and retail division is in the planning stages for shopping centres in two of our Perth estates and another in Melbourne. This division will continue to grow its retail activities, and has identified further opportunities in Peet landholdings such as medical centres, child-care facilities and industrial premises.
Perth Level 7, 200 St Georges Terrace, Perth WA 6000 PO Box 7224 Cloisters Square WA 6850 Telephone (08) 9420 1111 Facsimile (08) 9481 4712 Email [email protected]
Peet Living
During the year, our residential built form division, Peet Living, achieved planning permission for 120 apartments and townhouses in metropolitan Perth with further developments, within Peet estates across the country, in the design stages. Pre-construction sales for our new project in Joondalup, Grand 56, resulted in a sell-out of all apartments.
CORPORATE GOVERNANCE
Ladies and gentlemen, for more than 111 years Peet has been a tightly run ship and I am pleased to say that in this modern era, your Board takes the issue of Corporate Governance very seriously. I am proud of the Board's efforts to ensure Peet remains extremely well managed and accountable in every respect.
REMUNERATION
Peet is committed to delivering the best results for its shareholders and investors. The Company is also committed to offering its employees exciting opportunities for career and wealth enhancement, within an atmosphere of good governance, ethical behaviour and equal opportunity.
I am very happy to say that in a year dominated by a strong market and a national skills shortage, Peet Limited has not only kept its valuable team - but also built on it, attracting new and talented people to the company.
The Company's executive reward framework aims to ensure reward for performance is competitive and appropriate for the results delivered. This approach to remuneration is designed to deliver mutual benefits to shareholders, investors, the company and its employees. The framework aligns executive reward with achievement and strategic objectives and creation of value for shareholders, and conforms to market practice for delivery of reward.
Perth Level 7, 200 St Georges Terrace, Perth WA 6000 PO Box 7224 Cloisters Square WA 6850 Telephone (08) 9420 1111 Facsimile (08) 9481 4712 Email [email protected]
As part of today's business you will be asked to adopt the remuneration report set out in the Annual Report. While the vote is advisory only and does not bind the directors of the Company, I am confident that our remuneration packages are highly supportable.
THE PEET TEAM
I congratulate members of Peet's management and staff for again winning significant awards and recognition for excellence in planning, design, community building and environmental management in our estates from organisations such as the Planning Institute of Australia and Greensmart.
Peet's reputation has also been enhanced during the year by our work with the Western Australian State Government in two major joint venture projects. Both projects are of significant size and importance – one a leader in environmental excellence and the other in urban renewal.
I thank my fellow Board members for their effective, diligent and responsible work throughout the year - Managing Director and CEO Warwick Hemsley, National Business Development Executive Director Anthony Lennon and Non-Executive Directors Stephen Higgs and Graeme Sinclair. I believe this highly experienced and dedicated team provides shareholder representation second to none.
I also wish to note the very strong contribution of key Board support officers, Company Secretary Dom Scafetta and Chief Financial Officer Brendan Gore, and their assistants.
On behalf of the Board and our shareholders, I acknowledge the significant efforts, enthusiasm and commitment of the management and team at Peet throughout the year. We employ some of the most experienced and skilled property experts in Australia, and it is due to their focus that we have again achieved pleasing results which exceed forecasts relating to both profit and shareholder returns.
Perth Level 7, 200 St Georges Terrace, Perth WA 6000 PO Box 7224 Cloisters Square WA 6850 Telephone (08) 9420 1111 Facsimile (08) 9481 4712 Email [email protected]
Finally I thank our investors and shareholders for their ongoing support of our 111-year old business.
The Board and the Peet team look forward to the challenge of ensuring another successful year.
To continue our meeting, I now hand you over to the Managing Director and Chief Executive Officer of Peet Limited, Warwick Hemsley.
Welcome Peet Limited 2006 Annual General Meeting
a-sali maanga bobadi biyadii diina maanga sasabaya lamb biyahi ala fiifiiliyay maanga siyaan siyaana ka la fir
$80 million institutional placement
a-tatif maangar baan topol oolar "fanis maangar" nooli maangar baan topol oolar fanis maangar motoli maangar baank topol oolar
Placement - offer overview
Capital raising to leverage platform and drive future earnings growth
Placement of 20 million Peet shares raising $82 million
- New shares to rank equally with existing shares $\mathcal{P}$
- Placement price was determined by book build at $4.10 $\mathcal{V}$
- Placement underwritten by UBS AG, Australia Branch $\mathcal{V}$
Share purchase plan
- Peet shareholders will be offered an entitlement of up to $5,000 worth of shares at $4.10 $\mathcal{V}$
- Will be writing to shareholders in the next 21 days $\rightarrow$
Purpose of capital raising is to
- Strengthen capital position to accelerate growth of the funds management business via increased $\mathcal{V}$ warehousing capacity
- Over 5,280 lots acquired over six months to 30 September 2006 $\mathcal{D}$
- Access new profit streams, as signaled since IPO, by funding diversified development projects $\rightarrow$ (retirement, commercial, etc)
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2006 Results Overview
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2006 Key achievements
Peet achieved earnings growth of 24% for FY06, targeting 15% EPS growth for $FY07(21.2 \text{ cos})$
- Full year net profit after tax of $36.8 million (2005: $29.6 million AIFRS adjusted basis) $\mathcal{Y}$
- Final dividend of 9.5 cents per share fully franked has been paid $\mathcal{V}$
- Full year dividend of 17 cps (92%) fully franked (gross 24.3cps) $\rightarrow$
- Sales of 2,427 lots from syndicated, joint venture and owned projects, with gross sales value in excess of $\gg$ $355 million
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- In excess of 1,220 lots sold that are yet to settle for a value of $214 million at year end $\rightarrow$
- Continued progression on Income Fund and retirement living strategies/products $\rightarrow$
2006 Key achievements (continued)
Performance demonstrates Peet's ability to consistently deliver through market cycles
- Market value of inventory increased by 33% to $325 million at June 06 $\mathcal{V}$
- Acquisition program continues to deliver land bank growth $\lambda$
- Well advanced and diversified commercial and residential development pipeline $\lambda$
- Gearing target range of 30% 40% maintained $\rightarrow$
- Successful completion of three land syndications for funding of $48M of land $\rightarrow$
- FY07 syndication pipeline underway with two syndicates already lodged with ASIC $\rightarrow$
- Botanic Village Minimum subscriptions of $16 million with over subscriptions of up to $8 $\mathcal{V}$ million
- Peet Mundijong Minimum subscriptions of $16 million with over subscriptions of up to $8 $\lambda$ million
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Group financial performance
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Full year financial performance
Peet has recorded and continues to project strong earnings growth
- Three years historical NPAT of 24% (CAGR) $\mathcal{V}$
- FY07 EPS guidance maintained at 21.2 cps2-15% growth on FY06 $\mathcal{V}$
- FY07 DPS guidance maintained at 19.1 cps $\mathcal{V}$
- Strong FY06 EBIT margins-26.3% for owned projects; 72.8% for funds management; 71.5% for JVs $\mathcal{V}$
Historical EBIT growth
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Historical NPAT growth
1 AIFRS adjusted
2 Based on weighted average number of shares on issue following Placement
Group financial performance
Significant business scale with aggregated group revenue in excess of $355 million
Charts below illustrate the Peet Group's actual revenue and profit before tax consolidated for $\mathcal{D}$ syndicated and joint venture projects
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Growth in operations achieved through leveraging existing platform $\mathcal{Y}$
Revenue
$160
Profit hefore tax
Strong shareholder returns
Peet has delivered solid fully franked dividend yield and growth which has driven strong TSR performance since listing
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Earnings per share
EPS of 18.4 cps up 24.4%, projecting 15% $\mathcal{Y}$ growth for FY07
Dividends
- Final dividend at 9.5 cps $\gg$
- Full year dividend at 17 cps fully franked: $\mathcal{V}$ pre-tax equivalent of 24.3cps
1 Includes further final dividend of 2.5 cps
EBIT by geographical region
- » Over 60% of land bank situated in Vic and Qld, providing diversification in market cycles
- » EBIT contribution from WA in FY07 includes earnings from commercial & residential built form projects
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Assets Under Management
Total owned ad syndicated assets under management has grown to more than $1.2 billion
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1 Assets adjusted for market value
Key drivers to growth
Peet has an established and scalable business model; future earnings growth to be driven by leveraging existing platform
- Increased scale of FM business / syndication rollout $\mathcal{V}$
- Increase product flow (via strengthened capital position) $\mathcal{V}$
- In excess of 65% of repeat investment by existing investors $\mathcal{Y}$
- Potential for larger land holdings for syndicates $\mathcal{Y}$
- Diversification and growth of distribution network—retail and institutional $\gg$
- Diversification of product offering—income funds / larger institutional funds / fund of funds $\mathcal{D}$
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- Continued growth in diversified developments—retirement, retail, childcare and other sectors $\rightarrow$
- Substantial investment in personnel head count; grown by over 60% since listing $\mathcal{D}$
- Strategic appointments of commercial and retirement general managers to deliver $\mathcal{Y}$ future earnings
Enriching lives since 1895 | www.peet.com.au
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Land bank and market position
Significant land bank with an on completion value of approximately $5.4 billion1
- Australia's third largest land bank amongst ASX listed entities $\mathcal{Y}$
- Existing controlled lots stand in excess of 30,660 with a further pipeline of 259 lots under conditional $\mathcal{Y}$ contract
- Size of land bank provides ability to purchase well ahead of production, providing significant $\mathcal{D}$ competitive advantage
Estimated land bank sizes (ASX listed companies)
1 Using current average sale prices
2 Land bank has a dwelling lot equivalent of 37,400 if a residential yield is applied to medium density sites and non-residential sites Source: Company reports and announcements
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$(2)$
$(1)$
Land acquisition activity
Acquisitions team expanded to facilitate future growth
- In excess of 3,100 lots acquired since June $\mathcal{D}$ 2006 has resulted in a 11% land bank increase
- Acquisitions in key states of Vic, WA and Qld: $\mathcal{Y}$
- Zoned industrial landholdings acquired in Vic $\mathcal{Y}$ - potential feedstock for income fund(s)
- Range of other land opportunities under $\mathcal{V}$ review
4.297 4500 4000 3500 $3.198$ 1 3000 2500 2000 1500 1.068 985 1000 500 FY04 FY05 FY06 FY07
1 FY07 acquisitions as at 30 September 06
Total lots acquired during FY06 was 4,279, a further 3,198 acquired since year end;
5000
$(1)$
Victoria
- South East Corridor (8)
- Western Corridor
- Northern Corridor
Western Australia
- South West Corridor (4)
- South East Corridor (2)
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• Regional
Queensland
- Brisbane Central $(1)$
- Brisbane North $(1)$
- Brisbane Regional $(2)$
- Brisbane South $(1)$
Izand bank
Peet has established a quality national land bank that provides a diversified production profile
Estimated on-completion value approx $5.4 billion
$> 48$ years stock $>$ 36 projects > 30.665 lots managed or owned
Estates - Western Australia
- Ocean Lagoon $\mathcal{Y}$
- Burns Beach $\mathbf{y}$
- Carramar Golf Course Estate $\mathcal{Y}$
- Ashton Heights $\mathcal{Y}$
- The Chase $\mathcal{Y}$
- Forrest Gate $\mathbf{y}$
- Hawkstone $\mathcal{D}$
- Oakford Gardens $\mathcal{Y}$
- Brookwood $\mathcal{P}$
- The Village at Wellard $\mathcal{Y}$
- The Ridge $\mathcal{Y}$
- Byford $\mathcal{Y}$
- LakeLands Estate $\mathcal{D}$
- Twin Rivers $\mathcal{Y}$
- Quattro $\gg$
- Brigadoon $\mathcal{Y}$
- Mundijong $\mathcal{Y}$
- The Sanctuary $\mathcal{Y}$
Ashton Heights
Owned Project
| Location | Tapping, 28km North of CBD | |||
|---|---|---|---|---|
| Projected Gross Revenue | $114 million | |||
| Total Area | 60.0 ha | |||
| Purchase Date | 2003 | |||
| CompletionCommencement | ||||
| Estimated Timing | 2005 | 2009 | ||
| Sold | Remaining | Total | ||
| Number of Lots | 338 | 265 | 603 |
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Enriching lives since 1895 | www.peet.com.au
Construction of the Construction
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Lakelands
Syndicated Project
| Location | Mandurah, 60km South of CBD | |||
|---|---|---|---|---|
| Projected Gross Revenue | $419 million | |||
| Total Area | 281.9 ha | |||
| Purchase Date | 1994 | |||
| Commencement | Completion | |||
| Estimated Timing | 2003 | 2014 | ||
| Sold | Remaining | Total | ||
| 1.945 |
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Awards
- » Urban Development Institute of Australia Award '2005 Environmental'
- » Western Australian Environment Award 2005 'Business Leading by Example' Finalist
- » Housing Industry Association Greensmart 2005 Development of the Year'
- » 2005 Planning Institute Australia Award
- Special Commendation for Environmental Planning or Conservation'
The Ridge
Syndicated Project
| Location | Baldivis, 42km South of CBD | ||||
|---|---|---|---|---|---|
| Projected Gross Revenue | $$53$ milion | ||||
| Total Area | 39.0 ha | ||||
| Purchase Date | 1994 | ||||
| CompletionCommencement | |||||
| Estimated Timing | 2004 | 2007 | |||
| Sold | Remaining | Total | |||
| Number of Lots | 320 | 337 |
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Enriching lives since 1895 | www.peet.com.au
1994 - 1994 - 1994 - 1995 - 1995 - 1996 - 1997
The Village at Wellard
Joint Venture Project - Landstart (WA Gov't)
| Location | Wellard, 29km South of CBD | |||
|---|---|---|---|---|
| Projected Gross Revenue | $332 million | |||
| Total Area | 320.6 ha | |||
| Purchase Date | 2003 | |||
| CompletionCommencement | ||||
| Estimated Timing | 2004 | 2014 | ||
| Sold | Remaining | Total | ||
| Number of Lots | 481 | 2.220 | 2.701 |
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- $\mathcal{Y}$ 2006 Housing Industry Association Greensmart Development of the Year
- 2005 Planning Institute Australia $\lambda$ Awards:
- Special Commendation for Urban Design -Plans and Ideas
- Special Commendation for Urban Planning Achievement
- Special Commendation for Community Based Planning
- Award for Excellence for WA Planning Minister's Sustainability Award
Carramar Golf Course Estate
| Location | Carramar, 28km North of CBD | |||
|---|---|---|---|---|
| Projected Gross Revenue | $450 million | |||
| Total Area | 336.0 ha | |||
| Purchase Date | 1976 | |||
| CompletionCommencement | ||||
| Estimated Timing | 1995 | 2009 | ||
| Sold | Remaining | Total | ||
| Number of Lots | 2.739 | 506 | 3.245 |
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Syndicated Project
| Location | 28km North of C8D | |||
|---|---|---|---|---|
| Projected Gross Revenue | $963 million | |||
| Total Area | 290.0 ha | |||
| Purchase Date | 1969 | |||
| Commencement | Completion | |||
| Estimated Timing | 2005 | 2013 | ||
| Sold | Remaining | Total | ||
| Number of Lots | 201 | 1.266 | 1.467 |
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Estatés - Victoria
-
- Craigleburn Central
- $\mathcal{L}$ Greenvale Gardens
- $\mathcal{S}$ Greenvale Rise
- $\overline{4}$ Greenvale Lakes
- Brimbank Gardens $5 -$
- $6.$ Tarneit Gardens
- $77$ Tarneit Rise
-
- Innisfail
- $91$ Point Cook Gardens
-
- Castlereagh
-
- Brookland Greens
-
- Cranbourne Central
-
- Cardinia Lakes
-
- Westbury Park
-
- Westville Gardens
-
- Sherwood Park
-
- Evans Road
-
- Valley Road
-
- Abrehart Road
-
- Gisborne
-
- Lot 2, Palmers Road
-
- Northbrook Gardens
-
- Botanic Village
Brimbank Gardens
Syndicated Project
| Location | 18km West of CBD | |||
|---|---|---|---|---|
| Projected Gross Revenue | $259 millionmanagement and and a | |||
| Total Area | 203.0 ha | |||
| Purchase Date | 2001 | |||
| CompletionCommencement | ||||
| Estimated Timing | 2002 | 2015 | ||
| Sold | Remaining | Total | ||
| Number of Lots | 769 | 1.316 | 2.085 |
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Owned Project
| Location | 20km North of CBD | ||||
|---|---|---|---|---|---|
| Projected Gross Revenue | $500 million | ||||
| Total Area | 357.0 ha | ||||
| Purchase Date | 2003 | ||||
| CompletionCommencement | |||||
| Estimated Timing | 2004 | 2021 | |||
| Sold | Remaining | Total | |||
| Number of Lots | 131 | 2.195 | 2.326 |
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Innisfall
Owned Project
| Location | 22km West of CBD | |||
|---|---|---|---|---|
| Projected Gross Revenue | $250 million | |||
| Total Area | 145.0 ha | |||
| Purchase Date | 1999 | |||
| Commencement | Completion | |||
| Estimated Timing | 2003 | 2012 | ||
| Sold | Remaining | Total | ||
| Number of Lots | 764 | 835 | 1.599 |
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Karatina a Tan
Syndicated Project
| Location | 25km West of CBD | |||
|---|---|---|---|---|
| Projected Gross Revenue | $139 million | |||
| Total Area | 124.6 ha | |||
| Purchase Date | 2003 | |||
| Commencement | Completion | |||
| Estimated Timing | 2005 | 2012 | ||
| Sold | Remaining | Total | ||
| Number of Lots | 248 | 861 | 1.109 |
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Enriching lives since 1895 | www.peet.com.au
1960 - 1971 - Maria Katikariya ya 1972 a Tara na m
Syndicated Project
| Location | 55km South East of CBD | ||||
|---|---|---|---|---|---|
| Projected Gross Revenue | $115 million | ||||
| Total Area | 90 ha | ||||
| Purchase Date | 2003 | ||||
| CompletionCommencement | |||||
| Estimated Timing | 2005 | 2013 | |||
| Sold | Remaining | Total | |||
| ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,Number of Lots | 191 | 695 | 816 |
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Enriching lives since 1895 | www.peet.com.au
prostates and provided and there by t
Estatés - Quéensland
- River Bank 1.
- $2.$ Warner Lakes
- $\mathbb{R}$ Buderim
- $\blacktriangle$ Thornlands
-
- Beachmere
-
- Mitchelton
- $\mathbb{Z}$ Gladstone
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Warner Lakes
Syndicated Project
| Location | 21km North of CBD | ||||
|---|---|---|---|---|---|
| Projected Gross Revenue | $203 million | ||||
| Total Area | 206.0 ha | ||||
| Purchase Date | 2003 | ||||
| Commencement | Completion | ||||
| Estimated Timing | 2004 | 2012 | |||
| Sold | Remaining | Total | |||
| Number of Lots | 184 | 951 | 1.135 |
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'Enriching lives since 1895 | www.peet.com.au
There for the same to a second the same of the
Syncicated and JV project pipeline
Over 17,700 lots under management, with an estimated on-completion value of $3.4 billion2
Older syndicates make significant contribution to profits over FY07 to FY08; Increased profitability $\mathcal{Y}$ over longer term as increased profit share is realised on more recent syndicates with Peet receiving higher profit shares
| No. of | On Completion | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Lots 1 | Value ($m) | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | ||
| Bayview Heights | 189 | 34.0 | |||||||
| 2 | Botanic Village | 761 | 99.8 | ||||||
| з | Brimbank Gardens | 1.307 | 171.7 | ||||||
| 4 | Brookland Greens | 307 | 41.3 | m | |||||
| 5 | Burns Beach | 1.333 | 604.4 | 聯票 | |||||
| 6 | Byford | 195 | 38.5 | ||||||
| 7 | Cardinia Lakes | 616 | 92.6 | ||||||
| 8 | Carramar | 478 | 130.9 | ||||||
| 9 | Cranbourne Central | 706 | 92.7 | ||||||
| 10 | Lakelands | 1,905 | 402.8 | ||||||
| 11 | Mardo Ave | 39 | 9.7 | Contract of the Contract of the Contract of the Contract of the Contract of the Contract of the Contract of th | |||||
| 12 | Northbrook Gardens | 732 | 99.1 | ||||||
| 13 | Oakford Gardens | 100 | 150.0 | ||||||
| 14 | Ocean Lagoon | 4 | 1.3 | ||||||
| 15 | Point Cook Gardens Estate | 24 | 3.5 | ||||||
| 16 | Point Cook Junction | 74 | 19.5 | ||||||
| 17 | Quattro, Queens Park | 318 | 80.1 | ||||||
| 18 | Riverbank | 748 | 111.3 | 999 | |||||
| 19 | Tarneit Gardens | 841 | 116.5 | ||||||
| 20 | Tarneit Rise | 665 | 84.8 | ||||||
| 21 | The Ridge, Baldivis | 66 | 13.4 | 32. | |||||
| 22 | The Sanctuary | 206 | 41.2 | ||||||
| 23 | Twin Rivers (Australind) | 126 | 25.2 | ||||||
| 24 | The Village at Wellard | 2,413 | 494.6 | ||||||
| 25 | Warner Lakes | 996 | 179.1 |
and could also that here ago asset asset by an and spreaker for these worked
' Lots remaining
$^2$ Calculated adopting current average lof sales price
Owned project pipeline
Over 12,960 lots owned with a combined estimated completion value of $2.0 billion
Owned projects contributing to profits projected to increase from 3 in FY06 to 11 over FY07 $\mathcal{Y}$
Egyption after the the property worsel working to below a funder of the factor.
Number of owned projects have historically low cost base $\mathcal{V}$
| No. of$Lots^*$ | On-completionValue ($m) | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | ||
|---|---|---|---|---|---|---|---|---|---|
| 1555 South Gippsland Highway | 519 | 67.6 | |||||||
| $\overline{2}$ | 45 Valley Road, Skye | 90 | 11.8 | ||||||
| З | 51a Craig Road, Cranbourne | 264 | 34.3 | ||||||
| 4 | 53 Cogill Road, Buderim | 13 | 4.6 | 認用 | |||||
| 6 | Abrehart Road, Pakenham | 295 | 36.4 | BACALLE | |||||
| Ġ | Ashton Heights, Tapping | 241 | 62.5 | ||||||
| $\gamma$ | Beachmere | 171 | 36.1 | ||||||
| 8 | Big Grove, Albany | 148 | 30.5 | ||||||
| 9 | Boundary Road Truganina | 32 | 26.4 | ||||||
| 10 | Brigadoon | 219 | 76.7 | ||||||
| 77 | Brookwood | 15 | 4.5 | ||||||
| -12 | Castlereagh, Point Cook | 426 | 59.3 | ||||||
| -13 | Coorov | 174 | 30.0 | ||||||
| 14 | Craígiebum South | 1.457 | 189.2 | ||||||
| 15 | Gisborne | 16 | 2.1 | ||||||
| 16 | Gladstone | 571 | 71.4 | ||||||
| 17 | Greenvale Lakes, Greenvale | 1.313 | 226.1 | ||||||
| 18 | Greenvale Rise & Gardens | 1.014 | 132.2 | ||||||
| 79 | Innistall Estate | 882 | 127.9 | 翻 | |||||
| 20 | Lot 129 Baldivis Road | 260 | 46.8 | ||||||
| 21 | Lot 18 & 55 Fifty Road, Baldivis | 242 | 53.2 | ||||||
| 22 | Lot 347 Hammersmith Court | 16 | 5.6 | ||||||
| 23 | Metton | 524 | 47.2 | ||||||
| 24 | Mitchelton (Keperra) | 48 | 16.3 | 22.00 | |||||
| 26 | Other | 677 | 88.7 | ||||||
| 26 | Palmers Road Truganina | 30 | 23.0 | ||||||
| 27 | Part of Innistall Estate | 277 | 42.9 | ||||||
| 28 | Picketts Valley | 8 | 6.4 | ||||||
| 29 | The Chase at Baldivis | 194 | 42.7 | ||||||
| 30 | The Ridge | 106 | 19.0 | ||||||
| 31 | Thomands | 90. | 20.7 | ||||||
| 32 | Werribee | 1000 | 100.0 |
Lots remaining
Funds management
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Syndicate capital raising and distribution
Distribution network of over 3,500 active investors; repeat investment in excess of 65%
- Additional 5,500 prospective investors who receive information $\mathcal{D}$
- Four layer fee structure de-risks earnings $\mathcal{Y}$
- Target of A$55m in equity to be raised from syndication in FY07 $\mathcal{D}$
- Peet Cranbourne Central ($20m) & Peet Byford ($8.5m)—closed after 9 business days $\mathcal{D}$
and gyallo alar flad hindayar asi al manayir labd ayawan for face hindayir argaljananggo "Carl tin ho
- Botanic Village ($16m $24 m) prospectus has been lodged with ASIC $\mathcal{D}$
- Peet Mundijong ($16m $24 m) prospectus has been lodged with ASIC $\mathcal{Y}$
- Highly scalable business model, with strong margins likely to be maintained $\mathcal{D}$
Number of syndicates under management
Funds Management - income property fund
Fund Assets
- A portfolio of non-CBD commercial and industrial $\mathcal{P}$ properties
- Three new properties purchased in FY07 already $\mathcal{V}$
- Expanded to over 600 unit holders $\mathcal{V}$
- $37 million funds under management У.
- Fund property values increased by 11% during FY06 $\gg$
- Net Asset Value increased by 6% from 93.7 cents $\gg$ per Unit as at 30 June 2005 to 99.3 cents per Unit as at 30 June 2006
- Unit Price from July 2006: $1.11 per Unit $\rightarrow$
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Distribution for FY07 is forecast to be 9.16 cents per $\gg$ Unit (8.25% p.a. on a Unit Price of $1.11), 100% tax deferred.
Entiching lives since 1895 Www.peel.com.au
Commercial, residential and retirement
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Comnercial and residental builtform
In excess of 110 commercial and residential built form projects identified in land bank; potential income fund feedstock
- Peet Commercial seeks to develop shopping centres, light industrial units, office units, bulky goods $\mathcal{D}$ outlets and medical and childcare centres
- Peet Living undertakes development of low rise apartments, townhouses, gated villa complexes, mixed $\mathcal{Y}$ use and live / work accommodation
- Projects begin to yield profits from 2H FY07 and growing into FY08 $\mathcal{V}$
- Asset pipeline may support future funds management initiatives $\mathcal{D}$
- First residential built form project 100% pre-sold (Grand 56, Joondalup, WA) $\mathcal{Y}$
- Low risk approach to development including pre sales and pre letting, geographic spread and thorough $\lambda$ market research
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Garramár
Egykliatur had bevonge and the advance that have to ber had annual
| Project | Carramar Neighbourhood Centre, Carramar, WA | |||
|---|---|---|---|---|
| Project Type | Shopping | |||
| No. of retail units | 16 | |||
| Gurrant Status | Awaiting final approvals | |||
| Expected CompletionDate | 1 ate 2007 | |||
| Description | This project comprises a full line supermarket and a range ofretail, commercial and food outlets, centrally located within ourCarramar Golf Course Estate on Joondalup Drive. |
|....................................
Grand 56, Joondalup, WA
| Project | Grand 56, Joondalup, WA |
|---|---|
| Project Type | Mixed use (apartments & commercial) |
| No. of retail units | 25 |
| Current Status | Off plan sales-100% pre-sold |
| Expected Completion Date | Late 2007 |
| Description | This boutique project designed by Perth's leading residential architects, Overman & Zuideveld, is located in theheart of Joondalup City on Grand Boulevard. The project comprises 24 one and two bed apartments, a three bedpenthouse and 1 commercial unit. The project benefits from secure access and undercover parking, and a rangeof lifestyle facilities including pool, spa and sauna. |
republication travel provisions with maximily labed theodor for four marine
The Village at Wellard
| Project | The Village at Wellard, WA |
|---|---|
| Project Type | Apartments & Townhouses |
| No. of retail units | 60 |
| Current Status | Clearing of Planning Approval Conditions |
| Expected Completion Date | Autumn 2008 |
| Description | This transit orientated project designed by The Buchan Group and Overman & Zuideveld, forms thewestern side of the main street to The Village at Wellard. The project comprises a supermarket, togetherwith a range of retail, commercial and food outlets. |
Diane (senam mener)
Point Cook Junction
| Project | Point Cook Junction, Point Cook, VIC |
|---|---|
| Project Type | Retail and retirement - Live Work |
| No. of retail units | 30 |
| Current Status | Development Application |
| Expected Completion Date | Mid 2008 |
| Description | This project comprises 30 live work single and two storey units located immediately adjacent to theproposed Point Cook Junction commercial centre. The units will offer a range of live work solutions andprovides a combination of owner occupation and leasing opportunities within each unit. |
1979 - John Sterne Sterne (d. 1974)
PECT Living
Working Profession
Enriching lives since 1895 | www.peet.com.au
DACKSON REALTY
Retirement housing
- Growing business organically by utilising existing (and future) Peet land estates $\mathcal{Y}$
- Retirement projects will generate development profit on initial unit sales and DMF (Deferred $\mathcal{Y}$ Management Fee) income in the long term
- Existing Peet estates with retirement housing potential have been identified and estate master-plans $\mathcal{D}$ have been amended to incorporate the best product/concept for each location
- Now involved in assessing the retirement housing potential of new land acquisitions $\mathcal{Y}$
- Initial focus will be on 150–200 unit strata title / DMF lifestyle villages $\mathcal{Y}$
- Planning work for the first village at Lakelands (WA) is advanced with development scheduled to $\mathcal{Y}$ commence by April 2007
System ar Christ operator that plannye week staanlyer till a factor for the moneyer week walleyer lower agails
Awards
LAKELANDS ESTATE (WA)
- Urban Development Institute of Australia Award '2005 Environmental' $\mathbf{y}$
- Western Australian Environment Award 2005 'Business Leading by Example' Finalist
- Housing Industry Association Greensmart '2005 Development of the Year' $\mathcal{P}$
- 2005 Planning Institute Australia Award 'Special Commendation for $\mathbf{y}$ Environmental Planning or Conservation'
THE VILLAGE AT WELLARD (WA)
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Housing Industry Association Greensmart '2006 Development of the Year' $\mathcal{Y}$
-
George Sterne State (Sterne Sterne State State State State State State State State State State State State S
-
2005 Planning Institute Australia Awards; $\mathcal{Y}$
- Special Commendation for Urban Design Plans and Ideas
- Special Commendation for Urban Planning Achievement
- Special Commendation for Community Based Planning
- Award for Excellence for WA Planning Minister's Sustainability Award
- 2006 Planning Institute Australia Awards;
- Award for Excellence Environment
Market conditions and outlook
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Market outlook
- Barriers to entry increasing due to complexity and lead times $\mathcal{Y}$
- Property fundamentals to remain positive $\mathcal{V}$
- Long term demand trends remain positive and are considered sustainable $\mathcal{Y}$
- Economic climate, employment, demand side drivers such as immigration and affordability $\mathcal{V}$ remain positive
- Resources sector activity and development expected to continue to underpin Perth's market. У) affordability emerging as an issue
- Peet is well set to take advantage of any improvement in the east coast market with over 13 years of $\gg$ supply of land
raan ger land syaar dat had pannyer waal benaamper land aya banka pad manayer 'n aan manasyer land nye
- Individual states have different dynamics $\rightarrow$
- WA solid $\mathbf{y}_i$
- Vic and Qld steady $\rightarrow$
- NSW flat $\mathcal{P}$
Housing commencements
Equivalent to underlying demand running at 3,175 dwellings per week
stragar land ogastrinkar blad fremanger under blannager land i ymdinafor fordi menninger
| Underlying demand (dwellings) | Dwellingcommencements | |||
|---|---|---|---|---|
| 1996/97-2000/01 | 2001/02-2005/06 | 2006/07-2010/11 | 2005/06 | |
| WA | 17,500 | 19,000 | 21,300 | 25,500 |
| Vic | 33,700 | 37,700 | 38,600 | 38,350 |
| Qld | 31,000 | 44,100 | 43,000 | 37,800 |
| NSW | 45,600 | 42,600 | 47,400 | 30,650 |
| 139,600 | 157,100 | 165,100 | 148,140 |
Source: BIS Shrapnel
Enriching lives since 1895 | www.peet.com.au
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Rental Vacancy Trend
Tight rental markets reflect high demand
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Population growth outlook
Net Annual Population Increase
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Enriching lives since 1895 | www.peet.com.au
randa aya dan badan ya wasa daga d
38
Population migration
Net Overseas Migration
61
Source: BIS Shrapnel
Enriching lives since 1895 www.peel.com.au
Beloved Corners of the Cor
Sand School College
Affordability outlook
Home Loan Affordability - Monthly Mortgage Repayments (As a percentage of total full-time earnings)
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Source: BIS Shrapnel
'Enriching lives since 1895 | www.peet.com.au
Future outlook and strategy
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| - 1 - 1
Future outlook
Strong competitive advantage driven by experienced and focused management team
- Peet already owns or manages 100% of stock required to provide product to achieve our next 3 year $\mathcal{V}$ internal revenue targets
- Continue to develop growth opportunities within our existing land bank $\rightarrow$
- Strong balance sheet to capitalise on opportunities $\lambda$
- National land bank provides diversification to market cycles $\lambda$
- Continue to develop and progress new income streams commercial and residential, built form and $\lambda$ retirement
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EPS guidance maintained of 21.2 cps post Placement (15% growth on FY06) assuming a $\lambda$ continuation of market conditions
Forward strategy
Long term target to deliver EPS growth of 10% per annum
- Continue to optimise Peet's core business $\gg$
- Continued focus of EPS growth as a key driver of shareholder value $\gg$
- Continue to pursue new growth opportunities $\mathcal{V}$
- Maintain gearing target of 30% 40% $\rightarrow$
- Dividend payout ratio projected at 90%, dividends to continue to be 100% franked $\gg$
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About Peet
111 Years of Assets and Funds Management
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About Peet
Key issues over the past 111 years remain relevant today
and the transfer of the
$\mathbb{Z}$
'Enriching lives since 1895 | www.peet.com.au
LAKIL ZIBLEDAKAN PALI KADADAP DI DELA BADA DI DILA
Asset Manager Land Syndicator Fund Manager
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