EUROZ HARTLEYS CONFERENCE 2021 - A FOCUS ON CURRENT KEY ASPECTS/DRIVERS
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A FOCUS ON CURRENT KEY ASPECTS/DRIVERS EUROZ HARTLEYS CONFERENCE 2021 11 MARCH 2021
Current Sales & Market Activity
2
All Projects Sales per Month
➢ Material increase in sales since initial COVID shock, to sales momentum not seen in six years.
Total Sales and Value
80 $80
74
70 $70
5 day COVID shutdown
in Feb
60 $60
52
$m
50 48 48 $50
45 45 46
40
40 38 37 37 $40
33 34 33
31 32 32 31
29 29 29 29 29
30 26 26 27 27 26 $30
25 24
22 23 22 23 22
20 20 20 20 19 21
19 18 18 19
20
15 14 16 17 17 16 17 17 16 17
15
$20
13 12 14 13
11 12
10 10
10 8 $10
4 5
0 $-
TOTAL SALES NO. TOTAL VALUE $mil Source: Finbar Group Ltd
3
REA Insights WA Buyer Demand Index
➢ High-intent buyers on realestate.com.au reaches record high
- Western Australia
Source: realestate.com.au REA Insights
4
Investor Sales vs Owner Occupier Sales
➢ Room for further sales growth as investors ➢ State Govt moratorium on rent increases ends 28 March expected
return to market cautiously (currently ~30% vs to bring rents back to market (improving yields for investors) and
~50%+ in a normalised market) will see further transition of tenants to buyers
All Developments – Investor Sales vs Owner Occupier
140 90.0%
80.0%
120
70.0%
100
60.0%
80 50.0%
60 40.0%
30.0%
40
20.0%
20
10.0%
0 0.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Sales Investor Sales Owner Sales % Proportion of Investors Sales
% Proportion of Owner Sales Expon. (% Proportion of Investors Sales) Expon. (% Proportion of Owner Sales) Source: Finbar Group Ltd
5
Foreign Buyer Sales all low due to Surcharge Tax
➢ 7% Foreign Buyer Surcharge Tax continues to be major impediment on foreign sales.
➢ Tool for government to leverage rental property supply
Introduction by WA State Govt – Foreign Buyers Surcharge Tax (7%) on 1 Jan 2019
120
100
98
93
80
75
65
60
47 45
40
35
27 26
20 22
9
Calendar Year 3
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Finbar Group Ltd 6
Current Project Focus
7
Dianella Apartments
36 Chester Avenue, Dianella
Project: Dianella Apartments consists of 128
one, two, and three bedroom apartments.
Average price of $457,645.
▪ Status: Under Construction
▪ Ownership: 100% through wholly owned subsidiary
▪ Value: ~$62.5 million
▪ Est. Completion: FY22
▪ Sales:
Lots
Value ($m)
Under
Under Contract 48
Contract
For Sale $22 m For Sale 80
$41 m
8
Civic Heart
99 Mill Point Road & 3 Mends Street, South Perth
Project: Civic Heart will consist of 309 one, two, and
three bedroom apartments plus 26 commercial lots.
Average residential price $974,214.
▪ Status: Under Construction
▪ Ownership: 50% JV with landowner
▪ Value: ~$406 million
▪ Est. Completion: FY23
▪ Sales:
Value ($m) Lots
Under
Contract
$96 m Under Contract
94
For Sale For Sale 241
$315 m
9
[ VIDEO PRESENTATION ]
[ VIDEO PRESENTATION ]
Civic Heart – Construction Progress
12AT238
238 Adelaide Terrace, Perth
Project: AT238 Perth consists of 119 studio,
one, two, and three bedroom apartments
plus two ground floor commercial lots over 31
levels.
▪ Status: Construction commencing 15 March 2021
▪ Ownership: 50% JV with landowner
▪ Value: ~$90 million
▪ Est. Completion: FY22
▪ Sales:
Value ($m) Lots
Under
Contract 12
Under Contract
8.5 m
For Sale
81.5 m For Sale 109
13[ VIDEO PRESENTATION ]
The Point
31 Rowe Avenue, Rivervale
Project: The Point will consist of approximately 167 one, two,
and three bedroom apartments plus nine ground floor
commercial units. To be constructed on a 4,000m2 development
site situated at the main entrance to the Springs precinct.
▪ Status: Launching June 2021
▪ Ownership: 50% JV with landowner
▪ Value: ~$83 million
▪ Est. Completion: FY23/24
▪ Sales:
Value ($m) Lots
Future Future
Release* Release*
$83 m 176
*Indicative lots and project values only
15Chemlabs
101 Hay Street, East Perth
Project: The heritage listed site was formerly known
as the Chemistry Centre and is located at Lot 101 Hay
Street East Perth.
• 332 one, two, and three bedroom apartments
• 13 ground floor commercial lots (1,328sqm)
• 5,335 sqm land
• Status: In planning and design. Targeting launch Sept 2021
• Ownership: 50% JV through SPV
• Value: ~$200 million
• Est. Completion: TBC
Value ($m) Lots
Future Future
Release* Release*
$200m 332 lots
*Indicative lots and project values only
16Pre-Sales Book Value
➢ Pre-sale book now growing strongly with $158m in current off-the-plan presales.
$600
SUBI STRAND & TOCCATA
$500 ARBOR NORTH
NORWOOD MOTIVE
AURELIA & AIRE
$400 UNISON ON TENTH
CONCERTO
LINQ REVA PALMYRA
$m
$300 SABINA
VUE
ONE KENNEDY
$200
RIVERENA
$158 m
$100 IN ACCRUED
PRE-SALES
$0
$m PROJECT COMPLETION & SETTLEMENTS Source: Finbar Group Ltd
17Finbar – All Projects Unsold Completed And Off-the-Plan
➢ Active sell down of both off-the-plan and
completed stock.
$700
Millions
$572
$600
$500
$400
$300
$200
$104
$100
$-
Source: Finbar Group Ltd
Total Amount of Unsold Off-the-Plan Stock Total Amount of Unsold Completed Stock COMMERCIAL
18Robust Capital Spend on New Projects
19Significant Increase in Development Expenditure
Actual & Projected Development Expenditure
25
20
15
10
5
0
Actual Budget
20Project Pipeline - Summary
450
400
350
300
250
200
150
100
50
0
Remaining Stock Value $m Sold Stock Value $m Source: Finbar Group Ltd
21Cumulative Units Developed
10000
2134
8661
9000
8000
- 6527 units developed to date.
7000 6527
- Additional 2134 units in secured pipeline.
6000
- Multi year pipeline already secured.
5000
4000
3000
2000
1000
0
96 97 98 99 00 01 03 04 05 07 08 09 10 11 12 13 14 15 16 17 18 19 20 22
Source: Finbar Group Ltd
22Highlights
Growing pre-sales book and Multi-year pipeline of Strong, stable, enthusiastic JV
Recovering Market
WIP gives profit growth residential property partners seeking new
Investors returning (slowly)
confidence secured opportunities
Unstressed balance sheet Significant WIP commenced West Australians returning to
and strong cashflows from with Civic Heart (Jan 21) and the State in COVID free
Strong WA State economy
selldown of ungeared AT238 (Mar 21) environment
completed stock
23Important Notice
Some of the information contained in this presentation may contain forward-looking revenue, timeline, and general statements that are
subject to various risks, uncertainties, and changes. Forward-looking statements include those containing such words as ‘estimate’,
‘should’, ‘may’, ‘forecast’, ‘anticipates’, ‘expects’, ‘plans’, ‘approximately’, ‘circa’, or similar expressions. Finbar’s actual results,
performance, approvals, project composition, values, sales, or achievements could be significantly different from the results or
objectives expressed in, anticipated or implied by, those forward-looking statements. Readers are cautioned not to place undue reliance
on these forward-looking statements which refer to circumstances, estimates, and projections only as at the date of this release and
which are subjected to changes as a result of changing market conditions, construction timelines, amended project planning, and
revisions to company strategies.
The information contained in this presentation has been obtained from sources believed to be reliable. To the maximum extent
permitted by law Finbar, its offices, employees, agents and advisors do not make any warranty express or implied, as the accuracy,
reliability or completeness of the information in this Presentation or that the information is suitable for your intended use and disclaim
all responsibility and liability.
This Presentation is not an offer or an invitation to acquire Finbar securities and is not a product disclosure document or a prospectus
under Australia law. It is for information purposes only.
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