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TRANSCRIPT
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Agenda
Results overview
Investment Property
Commercial & IndustrialCommercial & Industrial
Residential
Capital management
Strategy and outlookStrategy and outlook
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Market conditions
Trading conditions remain positive with business and consumer confidence cautiously
optimistic
Credit conditions have improved but the cost of debt remains elevatedCredit conditions have improved but the cost of debt remains elevated
Investment grade asset values have stabilised supported by positive supply and demand
fundamentals
Residential house prices have recovered strongly but expected to stabilise with rising p g y p g
interest rates
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1H10 highlights
Group On track to deliver FY10 earnings and distribution guidance
Established unsecured $1.3bn syndicated bank debt facility and
extended debt maturity profile
Investment Property Strong portfolio metrics maintained ‐ occupancy 99.4%, WALE 5.4 years
Property values have stabilised
Commercial & Industrial Recovery emerging with 227 000 sqm of forward workload includingCommercial & Industrial Recovery emerging with 227,000 sqm of forward workload including
pre‐leases and turnkey projects
Strengthened pipeline with acquisition of 357 Collins St and Altona
Gardens Industrial Estate (32 ha), Victoria
Residential Solid sales performance with strong levels of contracts on hand
Successful launch of 4 new projects with ~65% pre‐sold
Secured Northshore development in Brisbane
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Group financial results
HY10 HY09
Investment Property $83m $78m
Commercial & Industrial $11m $23m
Residential $24m $14mResidential $24m $14m
Corporate $(12)m $(12)m
Eliminations $0m $8mEliminations $0m $8m
Operating EBIT $105m $112m
Operating profit1 $60m $60m
Investment property revaluation gain / (loss) $12m $(235)m
Impairment of development assets2 $0m $(93)m
Statutory profit / (loss) $72m $(269)m
5
1. Operating profit after tax and non‐controlling interest2. Post tax
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Key operating metrics
Operating EPS & DPS affected by 2009 entitlement offer
Recurrent earnings above target range while development returns recover
Revaluation gains have led to a modest uplift in NTA
HY10 HY09
Gearing well within target range
Operating EPS1 10.5c 16.2c
DPS2 10.0c 15.0c
% recurrent earnings (EBIT) 79% 70%% recurrent earnings (EBIT) 79% 70%
JUN 10 DEC 09
NTA per security2 $3.44 $3.42
Gearing3 27.1% 25.4%
6
1. HY09 restated for the effect of the 2009 entitlement offer and May 2010 security consolidation (5 into 1) in accordance with AASB133 Earnings per share2. HY09 restated for May 2010 security consolidation (5 into 1)3. Interest bearing debt / total tangible assets (cash adjusted)
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Financial performanceInvestment Property
EBIT growth of 6% on 1H09 RESULTS HY10 HY09
Comparable rental growth of 3.4%
One‐off contribution from Crest
H t l l
EBIT $83m $78m
Revaluation gain / (loss) $12m $(235)m
METRICS JUN 10 DEC 09Hotel sale process
Key portfolio metrics remain strong
METRICS JUN 10 DEC 09
Portfolio value $2.0bn $2.0bn
External AUM $0.2bn $0.2bn
99.4% occupancy
5.4 years WALE
Occupancy (by income) 99.4% 99.4%
Comparable rental growth 3.4% 3.3%
N b f ti 69 70Active portfolio management in 1H10
$65 million of acquisitions
Number of properties 69 70
WALE (by income) 5.4 yrs 5.8 yrs
Average portfolio age 6.6 yrs 6.2 yrs$84 million of divestments
Lettable area (sqm) 1.1m 1.1m
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ValuationsInvestment Property
Approximately 50% of Investment Property assets (by value) were independently valued in 1H10
Modest revaluation gain of $12 million, representing 0.6% increase on $2 billion portfolio
Valuations for quality assets have stabilised
CAP RATES JUN 10 DEC 09 JUN 09
Industrial 8.75% 8.79% 8.81%
Office 8.02% 8.12% 7.91%
Portfolio 8.41% 8.48% 8.34%
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Electrolux, Perth, WANestle, Rhodes, NSW
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Security of incomeInvestment Property
Approximately 84% of income expiring beyond 2012
3.4% average fixed rent reviews over 91% of portfolio income
88% of income derived from government, ASX listed and multinational companies
Internal pipeline provides access to new, high quality product with attractive return metrics
~84% EXPIRING POST FY12
LEASE EXPIRY PROFILE1 RENT REVIEW STRUCTURE1
20%16%
48% FIXED91%
7%> of FIXED OR CPI
1%6% 9%
16%
FY10 FY11 FY12 FY13 FY14 FY15+
OTHER2%
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1. By income, excludes vacancy of 0.6%
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Financial performanceCommercial & Industrial
RESULTS HY10 HY09Result reflects standing start in 1H10
Revenue2 $71m $108m
EBIT $11m $23m
Projects delivered (sqm) 59,000 51,000
Key projects contributing in 1H101
Best & Less, NSW ($44m)
Queensland Cotton VIC ($19m) Projects delivered (sqm) 59,000 51,000
Land sales (sqm) 129,000 264,000
Internal development2 $18m $46m
Queensland Cotton, VIC ($19m)
Kimberly Clark, QLD ($19m)
Target, QLD ($14m)
Sales to third parties2 $53m $62m
METRICS JUN 10 DEC 09
C it l l d3 $391 $323
Land sales at more normalised levels as
focus shifts to converting built form
Capital employed3 $391m $323m
Land bank (ha)4 416 426Strategic restocking
357 Collins St, VIC ($45m)
Altona Gardens VIC ($30m)
1. Figures shown are end values
Altona Gardens, VIC ($30m)
Activity expected to improve in 2H10
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g2. Includes ALZ share of joint ventures and PDAs3. Total assets less non interest bearing liabilities 4. Includes 100% of joint ventures and PDAs
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Forward workloadCommercial & Industrial
Forward workload of 227,000 sqm INTERNAL Estimated GLA/NLADEVELOPMENT end value ($m) (sqm) 1H10 2H10 1H11
across 14 projects, end value ~$460m
6 developments to be held internally,
NSW Kmart, Eastern Creek 72 51,600
Kimberly Clark, Parkinson 19 13,693
Salmat, Parkinson 16 9,223QLD
with an estimated end value of $311m
5 industrial assets ‐ expected
Boundary Rd, Westpark 21 26,096
Greens Rd, Keysborough 25 27,195
357 Collins Street, Melbourne 158 31,300
VIC
5 industrial assets expected
average yield on cost of ~9.75%
THIRD PARTY Estimated GLA/NLADEVELOPMENT end value ($m) (sqm) 1H10 2H10 1H11
Best & Less, Eastern Creek 44 36,000
Cassons, Eastern Creek 23 17,400NSW
1 office asset ‐ expected yield on
cost ~9.50%
Target, Parkinson 14 10,200
Earnshaw Rd, Northgate 18 6,898
Extrusions, Westpark 7 6,829
W t l (R t il) 23 6 415VIC
QLD
8 projects to be sold to third parties
with an estimated end value of $147m
Watervale (Retail) 23 6,415
P&O, Gilman 10 7,690
Boart Longyear, Adelaide Airport 8 6,880SA
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Strengthening market conditionsCommercial & Industrial
Industrial NATIONAL INDUSTRIAL SUPPLY3.0
Transactional activity supporting stabilisation
of capital values
L d hi t i ll l l l f1.0
1.5
2.0
2.5
sqm (m
)
10 year average
Low vacancy and historically low levels of
supply (prime vacancy ~5%)
Broader based enquiry including retail
0.0
0.5
'02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Completed Under ConstructionBroader based enquiry, including retail,
logistics and manufacturing sectors
Supply chain efficiencies driving consolidation
Source: Jones Lang LaSalle Research, Q2 2010
CONTAINER MOVEMENTS
1 000
1,500
2,000
2,500
3,000
No. 000
'sLeading indicators of demand positive
GDP growth forecast ~3% p.a.
forecast
0
500
1,000
'95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17Adelaide Brisbane Fremantle
Long term forecast growth rate for container movement ~5% p.a.
Inventory stock levels up 7%
14
Melbourne Sydney
Source: Bureau of Infrastructure, Transport and Regional Economics
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357 Collins Street, MelbourneCommercial & Industrial
Repositioning opportunity acquired at low point of the cycle
Forecast low vacancy rates to underpin favourable leasing
conditions
Plan to create an A grade office building in a primePlan to create an A‐grade office building in a prime
Melbourne CBD location
Net effective rents expected to grow as incentives reduceNet effective rents expected to grow as incentives reduce
driven by improved tenant demand
Demonstrates integrated develop and own model
FORECAST OFFICE RENTAL GROWTH (Jan 10 – Dec 12)
MELBOURNE SYDNEY
Face rental growth 5.0% p.a. 1.4% p.a.
Incentive reduction 22.2% 18.8%
Effective rental growth 10.4% p.a. 7.1% p.a. Refurbishment concept
15
Source: Jones Lang LaSalle Research, Q2 2010
g p p Refurbishment concept
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Strategic positioningCommercial & Industrial
ACQUISITION PROJECT CREATION
DESIGN & CONSTRUCT
PROJECT MANAGEMENT
DEVELOPMENT MANAGEMENT
ASSET OWNERSHIP
INDUSTRIAL LANDBANKPOSITIONING2
C&I pipeline with an estimated end value of $3 billion
416 ha industrial, two thirds fully serviced
NSW13%
SA 6%
QLD20%
200,000 sqm of office pipeline
100% zoned
Market leading position in industrial sector1
VIC61%
Market leading position in industrial sector1
Fully integrated platform enables strengthened customer relationships, 50% repeat business
EAST/NORTH13%
National presence with pipeline in close proximity to key infrastructure links
Melbourne is the largest industrial market with d f d k k EAST/
SOUTH EAST29%
WEST19%
13%diversified representation in key markets
Strong forward workload and improving market conditions to underpin growth
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1. Source: Jones Lang LaSalle Research, 16% national market share Q2 2009 to Q1 20102. Includes 100% of joint ventures & PDAs by land size
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Financial performanceResidential
Revenue and lot sales lower than
1H09 h h d
RESULTS HY10 HY09
1H09 however contracts on hand up
significantly
Melbourne & Sydney contributed
Revenue1 $184m $243m
EBIT $24m $14m
Lots sold1 517 578Melbourne & Sydney contributed
~70% of lots sold
FY10 forecast lot sales >70% secured
o s so d 5 5 8
Contracts on hand (lots)1 829 275
Contracts on hand (value)1 $361m $160m
On track to deliver FY10 EBIT
contribution in line with FY09
ACTIVITY HY10 HY09
Gross lots sold2 801 924
Gross contracts on hand (lots)2 1,243 419
METRICS JUN 10 DEC 09
Capital employed3 $812m $772map a e p oyed $8 $
Lots under management2 22,000 23,200
Pipeline end value2 $8.1bn $8.7bn
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1. Includes ALZ share of joint ventures and PDAs2. Includes 100% of joint ventures and PDAs 3. Total assets less non interest bearing liabilities
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1H10 operational highlightsResidential
Northshore, Brisbane acquisition with an estimated end value of $450 million$
New project starts
333, BurwoodStage 1 88% pre‐soldStage 1, 88% pre‐sold
Casiana Grove, Cranbourne West Stages 1 & 2, 74% pre‐sold
Yungabah Kangaroo Point333, Burwood, VIC
Yungabah, Kangaroo Point Stage 1, 49% pre‐sold
Aspect, East Perth Stage 1, 65% pre‐sold
INSERT PIC ‐ PONDS
New stages launched
Vine ‐ Discovery Point, Wolli Creek 100% pre‐sold
Pavilions, St LeonardsStage 2, 98% pre‐sold
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Pavilions on the Park, St Leonards, NSW
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Market outlookResidential
Housing remains in chronic undersupply driven by strong population growth
Employment continues to strengthen with Melbourne generating more than 25% of all new jobs
Rising interest rates impacting affordability
Underlying demand supported by low rental vacancy rates, particularly in Melbourne & Sydney
POPULATION GROWTH & HOUSING SUPPLY & DEMAND
200500400
POPULATION GROWTH & DWELLING COMPLETIONS
HOUSING SUPPLY & DEMAND
Annual l ti i
150
175
300
400
etions No. (00
0's)
tion gain (00
0's)
100
200
300
No. 000
's
Underlying demand
Completions
population gain
Shortage
100
125
100
200
Comple
Popu
la
‐100
0
100
'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14
Surplus
Annual dwelling completions
forecast
20
'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14
Source: ANZ Economics, April 2010Source: ANZ Economics, April 2010
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Geographic positioningResidential
VICTORIA NEW SOUTH WALES
Continues to perform well with strong sales momentum Pent up demand driving sales momentum
Diverse range of projects: land, medium density,greenfield and infill
Multiple market catchments and price points
Supply constrained due to high development costs and approval timeframes
Continue to trade through low margin and impaired projects
WESTERN AUSTRALIA QUEENSLANDWESTERN AUSTRALIA QUEENSLAND
Sentiment weakened with uncertainty in resources sector
Weighted to Port Coogee
Opportunities emerging to reposition portfolio
Recovery lagging but fundamentals remain sound
Unique projects positioned to drive earnings from 2011:
Yungabah, Kangaroo Point & Northshore, Hamilton
PIPELINE BY GEOGRAPHY (BY LOTS)1SALES ACTIVITY (BY LOTS)11,000
VIC54%
NSW19%
QLD11%Contracts on hand
1H10 lots sold
400
600
800
WA16%
19%
0
200
400
21
1. Includes 100% of joint ventures and PDAs
VIC NSW WA QLD
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Addressing affordabilityResidential
Products positioned to be competitive with the median price point in each market segment
End to end residential development capability ensures differentiated products can be delivered at
varying densities and entry price points across a diverse range of market segments
GREENFIELD DEVELOPMENT INFILL DEVELOPMENT
LAND & HOUSING 66%1 MEDIUM DENSITY 34%1
500
600
)
500
600
)
200
300
400
Price ($00
0's)
dian average
dian
dian average
average
200
300
400
Price ($00
0's)
dian average
dian
dian average
average
0
100
Doreen (VIC)
Epping (VIC)
Stanhope Gardens (NSW)
The Ponds (NSW)
City of Wanneroo
(WA)
JindowieYanchep (WA)
med
ALZa
med
med
ALZ a
ALZ a
0
100
Stanhope Gardens(NSW)
Braemont (NSW)
Town of Bassendean
(WA)
Bassendean (WA)
Endeavour Hills (VIC)
Endeavour Green (VIC)
med
ALZa
med
med
ALZ a
ALZ a
22
1. By number of lots, 100% of joint ventures and PDAs
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Positioned for growthResidential
Pipeline is positioned to deliver growth in 2011 driven by
New project commencements on track with an end value in excess of $1 billion
Progressive reduction of impaired inventory
Pipeline is ~80% zoned with an end value of $8 1 billion
REDUCTION OF IMPAIRED SALES1 MAJOR PROJECT 2
STATE LOTS3 EXPECTED
Pipeline is 80% zoned with an end value of $8.1 billion
30%
40%STARTS2 REVENUE
START
Cranbourne West VIC 670 2H10
Springfield QLD 271 2H10
10%
20%
% sales Burwood VIC 228 1H11
Kangaroo Point QLD 167 1H11
Carlton VIC 278 1H11
Greenvale VIC 573 1H11
0%
2009A 2010F 2011F 2012F
Greenvale VIC 573 1H11
Parkville VIC 300 2H11
Clyde North VIC 1,200 2H11
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1. % of impaired sales revenue, ALZ share. 2010 ‐ 2012 based on forecast sales revenue2. Major projects which begin to contribute revenue in 2H10 or FY113. ALZ share
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Restructured debt platform
UNSECURED DEBT FACILITY
New $1.3 billion unsecured debt facility with 3 tranches maturing in 2012, 2013 and 2014
New facility replaces $750 million Multi Option Facility and $396 million of bilateral bank facilities
$Significant milestone towards an unsecured debt platform by unencumbering $2.4 billion of assets
KEY BENEFITS
Improved debt maturity profile to 2.6 years
Reduced concentration of facilities expiring in any given year
Di ifi ti f f di ith ti i ti f dditi l b kDiversification of funding sources with participation of additional bank
Facilities available increased by $50 million
Positive impact on average cost of debt expected in 2H10Positive impact on average cost of debt expected in 2H10
Simplification of debt structure with associated administrative cost savings
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Capital management metrics
KEY METRICS 30 JUN 10Pro forma post
31 DEC 09
new facility
Gearing1 27.1% 25.4%
Covenant gearing2 (covenant 55%) 39.8 % 39.2%Covenant gearing (covenant 55%) 39.8 % 39.2%
Weighted average debt maturity3 2.6 years 1.7 years
Undrawn facilities plus cash4 $739m $760m
DEBT MATURITY PROFILE at 30 June 2010 pre new facility
DEBT MATURITY PROFILE at 30 June 2010 pro forma post new facility
$1,018m
Undrawn$468m $508m$437m
$346$325m
$362m
$650m
1. Interest bearing debt / total tangible assets (cash adjusted)
Drawn
2011 2012 2013 2014
$268m$346m
2011 2012 2013 2014
$362m
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g / g ( j )2. Total liabilities plus share of off‐balance sheet liabilities / total tangible assets plus share of off‐balance sheet assets (cash adjusted)3. By total facility expiry4. Net of bank guarantees
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Cost of debt
Cost of debt of 9.0% continues to be impacted by line fees, as we maintain a considerable level of
h d f ili li iheadroom to facility limits
Average cost of debt is approximately 7.8% on a drawn basis
L i d li f d f ilit t iti l i t th f ll t f d btLower margins and line fees on new unsecured facility to positively impact the full year cost of debt
Hedge profile remains within our target range of 70%‐90%
COST OF DEBT 1H10 2H09 1H09
ICR of 3.2x in 1H10 (covenant >2.0x)
Weighted average cost of debt1 9.0% 9.0% 6.4%
% of debt fixed by hedges 89% 89% 78%
Weighted average hedge maturity 2.9 years 3.4 years 4.7 years
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1. All in cost of debt excluding establishment fees and net of interest income
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Summary
STRONG PROGRESS AGAINST CAPITAL MANAGEMENT OBJECTIVES
Extended debt maturity profile
Expanded funding sources
Maintained liquidity headroom
Positioned to reduce average cost of debt
ONGOING FOCUS
Further improve debt maturity profile and diversify funding sources
Euro Medium Term Note Programme
Replace CMBS with unsecured debt
Balance liquidity headroom against proactively managing our cost of debt
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Group business model
AUSTRALAND PROPERTY GROUP
RECURRENT INCOME(60%‐70% of Group EBIT)
GROWTH(30%‐40% of Group EBIT)
C&I
416 ha landbank$3bn end value
Investment Property
$2.0bn portfolio of high quality investment assetsDiversified across industrial and office sectors
RESIDENTIAL
22,000 lots$8.1bn end value$3bn end value
100% zonedDiversified across industrial and office sectorsLong term leases with quality tenant covenants
$8.1bn end value~80% zoned
WA1%
QLD16%
NSW13%
SA 6%
QLD20%
QLD11%
INDUSTRIAL55%
INDUSTRIAL54%
OFFICE46%
NSW41%
VIC40%
SA 6%
VIC61%
20%VIC54%
WA16%
NSW19%
OPTIMUMMIX OF RECURRENT INCOME AND GROWTH
55%
SA2%
16%
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OPTIMUM MIX OF RECURRENT INCOME AND GROWTH
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Group strategic plan
Recurring Target 60% 70% of Group EBIT from recurrent earnings
On track to meet stated strategic objectives
Recurringearnings
Target 60%‐70% of Group EBIT from recurrent earnings
FY10 result expected to be in line with target range as development earnings improve
Strong portfolio metrics maintained – 99.4% occupancy; 5.4 year WALE
Development returns
Improve development divisions’ ROACE1 to at least 12% by FY12
Fundamentals in office, industrial and residential sectors remain positivep
Development pipeline substantially zoned
Progressive reduction in impaired and low margin stock
Replenishing pipeline through strategic acquisitions
Capital management
Prudent capital management framework
Gearing of 27 1% at 30 June 2010 (within target range of 25%‐35%)Gearing of 27.1% at 30 June 2010 (within target range of 25% 35%)
Significant progress on key capital management priorities through establishment of unsecured debt facility
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1. Return On Average Capital Employed (EBIT / Average capital employed)
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Group outlook & guidance
Value creation on internal development
Recognition of gains as revaluations rather than operating profit1
pipeline To apply to new projects from 2H102
In line with A‐REIT sector and supports our positioning for A‐REIT inclusion
FY10 earnings and distribution guidance
Reaffirm earnings guidance: FY10 operating profit to be similar to FY09
Reaffirm distribution guidance: FY10 DPS of 20.5 cps
1H10 distribution of 10.0 cps declared and payable on 5 August
Outlook Valuations for quality assets are expected to improve
Earnings growth expected from FY11 as development returns improve
Strengthened management team driving improved performance
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1. Wholly owned projects only2. Including 357 Collins St
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Summary of profit and loss statementFinancial
HY10$m
HY09$m
Investment Property 83 78
Commercial & Industrial 11 23
Residential 24 14
Corporate (12) (12)
Eliminations 0 8Eliminations 0 8
EBIT 105 112
Net interest (35) (42)
Profit before tax 70 70
Tax 3 1
N lli i (12) (11)Non‐controlling interest (12) (11)
Operating profit 60 60
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Profit before tax reconciliationFinancial
HY10$m
HY09$m
Investment Property 86 70
Commercial & Industrial 9 19
Residential 18 7
Corporate (28) (21)
Eliminations (16) (5)Eliminations (16) (5)
Profit before tax 70 70
Tax 3 1
Non‐controlling interest (12) (11)
Operating profit 60 60
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Interest reconciliationFinancial
HY10$m
HY09$m
Gross interest 49 58
Less: capitalised interest (19) (20)
Interest expense in profit and loss 31 38
Add: capitalised interest expensed via COGS 7 5
Total profit and loss effect 38 44Total profit and loss effect 38 44
Interest income 2 2
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Balance sheetFinancial
JUN 10 $m DEC 09 $m
Assets
Cash
Receivables
Inventories
Investment properties
39
255
912
1,943
124
295
789
1,886p p
Investment properties held for sale
Equity accounted investments
Other assets
,
75
207
65
,
137
196
56
Total assets 3,496 3,483
Liabilities
Interest bearing liabilities 976 976
Other liabilities 270 264
Total liabilities 1,246 1,240
Net assets 2,250 2,243
NTA per security1 $3.44 $3.42
Gearing2 27.1% 25.4%
Covenant gearing3 39.8% 39.2%
38
1. Dec 09 restated for May 2010 security consolidation (5 into 1)2. Interest bearing debt / total tangible assets (cash adjusted)3. Total liabilities plus share of off‐balance sheet liabilities / total tangible assets plus share of off‐balance sheet assets (cash adjusted)
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NTA and securities on issue reconciliationFinancial
NET TANGIBLE ASSETS $m $ per security
20 0 9 3 2As at 1 January 2010
Gains from property revaluations
Movement in reserves / other balance sheet items
1,974
12
(4)
3.42
0.02
(0.00)
As at 30 June 2010 1,982 3.44
SECURITIES ON ISSUE Date No. of securities (m)
As at 1 January 2010
Impact of security consolidation (5 into 1) May 2010
2,884
(2,307)Impact of security consolidation (5 into ) May 0 0 ( ,307)
As at 30 June 2010 577
Weighted average number of securities 577
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Joint venture accountingFinancial
ALZ SHARE OF ASSETS AND LIABILITIES IN JVs AND ASSOCIATES JUN 10$m
DEC 09$m
Assets
Current inventory
Other current assets
476
52
514
65Other current assets
Other non‐current assets
52
69
65
69
Total assets 597 647
Liabilities
Current interest bearing debt
Other current liabilities
19
60
19
64
Non‐current interest bearing debt
Other non‐current liabilities
263
1
313
1
Total liabilities 342 397Total liabilities 342 397
Net assets 255 250
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Liquidity and debt facilitiesFinancial
Pro forma 30 June 2010FACILITY LIMIT
$mDRAWN AMOUNT
$mMATURITY DATE SECURITY
CMBS 268 268 Mar 20111 Secured
Bilateral bank facility 112 112 Dec 20121 Secured
Tranche A syndicated 325 250 Jun 20121 UnsecuredTranche A ‐ syndicated 325 250 Jun 20121 Unsecured
Tranche B ‐ syndicated 650 346 Jun 20131 Unsecured
Tranche C ‐ syndicated 325 0 Jun 20141 Unsecured
Total 1,680 976
Available facilities 704
Cash at bank 39
Bank guarantees (4)
Available liquidity 739Available liquidity 739
41
1. Facility may be extended to December 2014 subject to satisfaction of conditions precedent
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Cash flow and liquidityFinancial
LIQUIDITY POSITION $m
Opening liquidity (1 Jan 2010) 760
Operating activities 44
Development commitments (41)Development commitments (41)
Sale of investment property 68
Investment property commitments (65)
Distributions and ASSETS (69)
Facility movements (90)
Oth (22)Other (22)
Closing liquidity (30 Jun 2010) 585
Reduction of secured facilities (1,146)
Increase of unsecured facilities 1,300
Pro forma liquidity 739
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Debt covenants1Financial
MEASURE COVENANT HY10
Interest cover ratio (cash basis) >2.0x 3.2x
EBIT / cash interest paid
Investment Property interest cover ratio >1.3x 2.0xInvestment Property interest cover ratio >1.3x 2.0x
Net operating income of IP / cash interest paid
Covenant gearing (look through) <55% 39.8%
Total liabilities plus share of off‐balance sheet liabilities / total tangible assets plus share of off‐balance sheet assets (cash adjusted)
Priority debt <7.5% 0%
Secured debt (excludes CMBS and bilateral facility) / total tangible assets
Securityholders funds >$1.6 billion $2.2 billion
Total tangible assets less total liabilitiesTotal tangible assets less total liabilities
ReportingCompliance certificate
bi‐annuallyComplied
43
1. All covenants post 30 June 2010 for $1.3 billion unsecured facility
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Interest rate hedging profileFinancial
10.0%1,000
8.0%
9.0%
800
900Hedged amount (LHS)
Hedge rate (RHS)
6.0%
7.0%
600
700
$m
4.0%
5.0%
400
500
$
2.0%
3.0%
200
300
0.0%
1.0%
0
100
2010 2011 2012 2013 2014 2015 2016 2017 2018
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2010 2011 2012 2013 2014 2015 2016 2017 2018
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Hedging mark to marketFinancial
08 50%
(10)
0
7.50%
8.50%
(20)
6.50%
(40)
(30)
5.50%
$m
(50)
( )
4.50% Swaps MTM (RHS)
5 yr swap rate (LHS)
(60)3.50%
Jun‐09
Jul‐09
Aug
‐09
Sep‐09
Oct‐09
Nov
‐09
Dec‐09
Jan‐10
Feb‐10
Mar‐10
Apr‐10
May‐10
Jun‐10
Hedged rate (LHS)
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Investment PropertyPortfolio diversification
GEOGRAPHIC DIVERSITY1SECTOR DIVERSITY1
INDUSTRIALOFFICENSW41%
WA1%
QLD16%
54%46%41%
VIC40%
SA2%
TENANT PROFILE2
ASX listed companies 37%
Multinational companies 43%Multinational companies 43%
Government 8%
Other 12%
46
1. By portfolio value2. By portfolio income
Total 100%
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Portfolio diversification1Investment Property
INDUSTRIAL – GEOGRAPHIC DIVERSITY2 OFFICE – GEOGRAPHIC DIVERSITY2
NSW34%
QLD29% NSWVIC
SA3%
VIC32%
WA2%
50%49%
3%
OFFICE KEY METRICS JUN 10INDUSTRIAL KEY METRICS JUN 10
QLD1%
OFFICE – KEY METRICS JUN 10
Portfolio value $0.9bn
Number of assets 18
INDUSTRIAL – KEY METRICS JUN 10
Portfolio value $1.0bn
Number of assets 50
NLA 251,423 sqm
Weighted cap rate 8.02%
NLA 892,322 sqm
Weighted cap rate 8.75%
47
1. Excludes one property held for sale2. By value
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Lease expiry profile and rent review structure1Investment Property
INDUSTRIAL LEASE EXPIRY OFFICE LEASE EXPIRY
57%
22%
57%
37% 37%
1%6% 7% 6%
22%
1%6%
12%7%
INDUSTRIAL RENT REVIEWS OFFICE RENT REVIEWS
FY10 FY11 FY12 FY13 FY14 FY15+ FY10 FY11 FY12 FY13 FY14 FY15+
FIXED90%
FIXED94%
> of FIXED OR CPI
10% CPI, EXPIRY, OTHER
6%
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1. By income, excludes 0.6% portfolio vacancy
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Top 10 tenants by incomeInvestment Property
PORTFOLIO INDUSTRIAL OFFICE
Wesfarmers (13%) Wesfarmers (18%) C’wealth Govt of Australia (11%)
C’wealth Govt of Australia (5%) LG Electronics Australia (5%) Nestle Australia (10%)
Nestle Australia (5%) Schweppes Australia (4%) Pricewaterhouse Coopers (9%)Nestle Australia (5%) Schweppes Australia (4%) Pricewaterhouse Coopers (9%)
Pricewaterhouse Coopers (4%) H.J. Heinz Co. Australia (4%) Wesfarmers (7%)
Tower Risk & Investment (3%) Toll Holdings (3%) Tower Risk & Investment (7%)
Qantas Airways (3%) Inchcape Motors Australia (3%) Qantas Airways (6%)
LG Electronics Australia (3%) DHL Global Forwarding (3%) TNT Australia (5%)
TNT A li (2%) R il Ad (3%) S G f NSW (5%)TNT Australia (2%) Retail Adventures (3%) State Govt of NSW (5%)
Schweppes Australia (2%) API (2%) National Australia Bank (4%)
State Govt of NSW (2%) Consolidated Paper (2%) Publishing & Broadcasting (3%)
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Strategically positioned landbanksCommercial & Industrial
Industrial landbanks located within close proximity to major transport networks
The Key Industrial Park, VIC West Park, VIC
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Eastern Creek Business Park, NSW SouthLink Business Park, QLD
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Pipeline optionalityCommercial & Industrial
INDUSTRIAL PRE‐LEASE
INDUSTRIAL LAND & BUILD
INDUSTRIALSPECULATIVE
INDUSTRIAL LAND SALES
COMMERCIAL
Winston Hills
Eastern Creek
NSW
Eastern Creek
Moorebank
Rhodes
Macquarie Park
Northgate
QLD
g
Parkinson
Yatala
Berrinba
Pinkemba
Inala
West Park
Altona
Melbourne Airport
VIC
p
Keysborough
Dandenong
Rowville
357 Collins St
Freshwater (Stage 3)
Mulgrave
SA Burbridge Business Park
51
WA Cockburn
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Residential Pipeline mix1
PIPELINE BY PRODUCT TYPE PIPELINE BY PRICE POINT
HIGH DENSITY10%
PREMIUM RANGE2%
LAND
HOUSING & MEDIUM DENSITY14%
10%
AFFORDABLEMEDIUM RANGE76%14%
67%RANGE31%
52
1. By number of lots, includes 100% of joint ventures and PDAs
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Pipeline breakdown1Residential
LAND HOUSING & MEDIUM DENSITY HIGH DENSITY
Discovery Point, NSWIvadale Lakes, QLD Solito, QLD
Projects 32 Projects 23 Projects 16
Lots 16,650 Lots 3,161 Lots 2,141
Assets $464m Assets $264m Assets $140mAssets $464m Assets $264m Assets $140m
End value $5.1bn End value $1.7bn End value $1.3bn
Average age2 4.4 yrs Average age2 3.0 yrs Average age2 7.6 yrs
Development life2 10.7 yrs Development life2 4.4 yrs Development life2 6.8 yrs
53
1. Includes 100% of joint ventures and PDAs2. Weighted average by lots remaining
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Residential Pipeline timing
MAJOR WHOLLY OWNED PROJECTS
5,711 lots with an estimated on‐completion value of $2.7 billion
End value Lots FY10 FY11 FY12 FY13
Elderslie 115 28Lidcombe 80 58
d l
$m
NSW
Carindale 18 11Ivadale Lakes 294 92Kangaroo Point 167 160Springfield 271 70QLDPark Ridge 283 69Hamilton 850 452Runaway Bay 56 28
Cranbourne West 670 128Greenvale 573 136Burwood 228 125Doreen 200 48
P t C 309 603
VIC
Port Coogee 309 603Armadale 87 32Somerley 76 31Baldivis 765 181C kb C l 282 121
WA
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Cockburn Central 282 121
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Residential Pipeline timing
MAJOR JOINT VENTURES AND PDAs1
16,241 lots with an estimated on‐completion value of $5.4 billion
End value Lots FY10 FY11 FY12 FY13
Lidcombe 362 236Wolli Creek 1,094 717St Leonards 106 78
$m
NSW St Leonards 106 78Shell Cove 1,400 450The Ponds 690 270
Burleigh Heads 20 32QLD
NSW
Hope Island 418 153
Croydon 469 149Sunshine 500 189Parkville 600 263
QLD
Wallan 1,375 248Clyde North 2,400 658Beveridge 3,800 940Carlton 555 320
VIC
Carlton 555 320
Port Coogee 167 170Yanchep 1,191 257Byford 399 83E P h 128 68
WA
55
1. Includes 100% of joint ventures and PDAs
East Perth 128 68
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Residential Estimated future pipeline1
PROJECTS LOTS REMAINING END VALUE ($m)
d i & i h d i & i hLand Housing & Medium Density
High Density
Land Housing & Medium Density
High Density
NSW 16 2,437 512 1,201 919 335 795NSW 16 2,437 512 1,201 919 335 795
VIC 21 10,550 851 610 2,631 486 310
QLD 13 848 1,280 202 231 637 201
WA 21 2,815 518 128 1,295 226 68
Total 71 16,650 3,161 2,141 5,076 1,684 1,374
Wh ll d 40 3 694 1 825 192 1 529 974 216Wholly owned 40 3,694 1,825 192 1,529 974 216
JV / PDAs 31 12,956 1,336 1,949 3,547 710 1,158
Total 71 16,650 3,161 2,141 5,076 1,684 1,374
56
1. Includes 100% of joint ventures and PDAs
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Residential 1H10 metrics1
SALES BY SEGMENT2LAND HY10
Lots settled 352
Average sale price $256k
Revenue $90mLAND68%
HOUSING & MEDIUM DENSITY23% Revenue $90m
HOUSING & MEDIUM DENSITY HY10
HIGH DENSITY9%
SALES BY GEOGRAPHY2
Lots settled 121
Average sale price $468k
Revenue $56m
NSW18%
WA
QLD12%
Revenue $56m
HIGH DENSITY HY10
VIC50%
20%Lots settled 44
Average sale price $852k
R $38
57
1. ALZ share2. By lots
Revenue $38m
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Residential 1H10 metrics1
LOTS SOLD NSW VIC WA QLD TOTAL
Land 55 176 76 45 352
Housing & Medium density 27 58 27 9 121
High density 10 27 ‐ 7 44
Total 92 261 103 61 517
Wholly owned 16 164 82 51 313
JV / PDAs 76 97 21 10 204
Total 92 261 103 61 517Total 92 261 103 61 517
REVENUE ($m) NSW VIC WA QLD TOTAL
Land 13 32 36 9 90
Housing & Medium density 12 26 12 6 56
High density 9 22 ‐ 7 38
Total 34 80 48 22 184
Wholly owned 28 59 37 16 140
JV / PDAs 6 21 11 6 44
Total 34 80 48 22 184
58
Total 34 80 48 22 184
1. ALZ share
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Disclaimer
Australand Holdings Limited (ABN 12 008 443 696)Australand Property Limited (ABN 90 105 462 137; AFSLN 231 130) as the responsible entity of AustralandAustraland Property Limited (ABN 90 105 462 137; AFSLN 231 130) as the responsible entity of Australand Property Trust (ARSN 106 680 424) and Australand ASSETS Trust (ARSN 115 338 513) Australand Investments Limited (ABN 12 086 673 092; AFSLN 228 837) as the responsible entity of Australand Property Trust No.4 (ARSN 108 254 413) and Australand Property Trust No.5 (ARSN 108 254 771)
L l 3 1C H b h B D iLevel 3, 1C Homebush Bay DriveRhodes NSW 2138Ph: +61 2 9767 2000Fax: +61 2 9767 2900
Disclaimer of liabilityyWhile every effort is made to provide accurate and complete information, Australand does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for the recipients’ intended use. Subject to any terms implied by law and which cannot be excluded, Australand accepts no responsibility for any loss, damage, cost or expense (whetherdirect or indirect) incurred by any recipient as a result of any error, omission or misrepresentation in information in this presentation. All information in this presentation is subject to change without notice.
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Notes
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