Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Fincorp investor presentation

                         Hamish Macdonald, CEO, Becton Property Group
                     ...
Disclaimer
 This presentation is provided by Becton Property Group Limited and is for general information only.


 Opinion...
Presentation overview


 • About Becton Property Group
     – Our track record
 • About Becton Investment Management
 • Fi...
Becton Property Group —
 Stapled Group Structure

                                             Becton Property Group
     ...
Becton Property Group —
 Equity: strong institutional support

                          Top 20 Institutions              ...
Becton Property Group —
 Overview continued



     Total assets – $ millions                                     Gearing ...
Becton Property Group —
 Becton Investment Management


 • $1.3b funds under
   management
 • 16 investment vehicles:
   t...
Example of Becton Office Fund structure &
 cash flow

                                 Investors

                        ...
Differences between Fincorp and
 Becton Property Group

                               Fincorp             Becton Property...
Becton Office Fund —
 Fund overview


    Fund size                           $374.91 million
    Number of properties    ...
Becton Office Fund —
 Geographic overview

          Geographic diversification by gross income (%)

                     ...
Becton Office Fund —
 Tenant diversification

                 Tenant type by gross income (%)
                           ...
Becton Office Fund —
 Top tenants

 Top tenants by gross income
 Telstra Corporation                         11.62%
 Dept ...
Becton Office Fund —
 Assuming $10,000 investment since inception




 Note: Performance calculations are based on reinves...
Becton Office Fund —
 2 Elizabeth Plaza, North Sydney, New South Wales


 ●   13 level office building

 ●   North Sydney ...
Becton Office Fund —
 Railway Parade, Burwood, New South Wales


 ● Two office buildings – 8
 levels each
 ●Suburban Sydne...
Becton Office Fund —
 Benefits for investors

 • Strong yielding investment – a yield of 8.2% per annum^
 • Regular distri...
Becton Office Fund —
 Benefits for investors continued


 • Becton Co–investment – Becton has a 45% interest in the
   Bec...
Becton Office Fund —
 Liquidity explained

 • Investors can redeem their units in March and September
   every year
 • Max...
Becton Office Fund —
 Tax Deferred explained


 • Monthly payments are tax-deferred
 • In 2006/07, this was 100% for the B...
Becton Office Fund — Capital guarantee
 Becton will guarantee your initial upfront investment, less any investment
 earnin...
For further information:
 Website            www.becton.com.au (click on ‘funds management’)
 Phone              1800 182 ...
Upcoming SlideShare
Loading in …5
×

Fincorp investor presentation

668 views

Published on

  • Be the first to comment

  • Be the first to like this

Fincorp investor presentation

  1. 1. Fincorp investor presentation Hamish Macdonald, CEO, Becton Property Group Gilston Rush, Fund Manager, Becton Office Fund 25 July 2007 Becton Investment Management
  2. 2. Disclaimer This presentation is provided by Becton Property Group Limited and is for general information only. Opinions expressed are our present opinions only and are subject to change. In preparing this presentation, we have obtained information from sources we believe to be reliable, but do not offer any guarantees as to its accuracy or completeness. The information contained in the presentation is general in nature and in preparing this presentation Becton Property Group Limited has not taken into account the investment objectives, financial situation and particular needs of any particular person. Before making an investment decision, a prospective investor should consider, with the assistance of a financial and tax adviser, whether an investment is appropriate in light of their particular investment needs, objectives and financial circumstances. It does not contain and is not to be taken as containing any securities advice or securities recommendation. Furthermore, it is not intended that it be relied on by recipients for the purpose of making investment decisions. Subject to law, none of the companies of Becton Property Group Limited or its respective directors or employees, accepts any responsibility or owes any duty of care to any person acting, or refraining from acting, as a result of material in this presentation. Becton Investment Management
  3. 3. Presentation overview • About Becton Property Group – Our track record • About Becton Investment Management • Fincorp v Becton • About Becton Office Fund – Current assets – Benefits for investors • Questions Becton Investment Management
  4. 4. Becton Property Group — Stapled Group Structure Becton Property Group (ASX-Listed) Stapled Becton Property Group Limited Becton Property Trust Funds Management Development & Retirement (Becton Investment Becton Diversified Property Fund Construction Management) 14 Sector and Single Property Trusts Becton Investment Management
  5. 5. Becton Property Group — Equity: strong institutional support Top 20 Institutions 29 Jun 2007 % of iu Investor base % 1 AMP Capital Investors 8,902,430 6.1% Directors, 24% 2 Goldman Sachs JB Were Investment Mgt 8,787,914 6.0% 3 Challenger Financial Services Group 7,272,115 5.0% management 4 Deutsche Asset Mgt 6,857,664 4.7% and staff 5 QIC 5,874,614 4.0% 6 Credit Suisse Asset Mgt 4,851,639 3.3% 20 largest 51% 7 Colonial First State - Core Australian Equities 4,342,076 3.0% institutions 8 BlackRock 4,190,740 2.9% 9 Paradice Investment Mgt 3,438,283 2.4% Other (other 25% 10 BT Financial Group 3,380,690 2.3% institutions 11 Portfolio Partners 2,744,767 1.9% 12 Legg Mason Asset Mgt 2,344,246 1.6% and retail) 13 Opis Capital 2,020,000 1.4% 14 Hyde Family 1,600,000 1.1% Total 100% 15 Pengana Capital 1,406,452 1.0% 16 Mr William J Conn 1,255,264 0.9% 17 Colonial First State Investments 1,210,354 0.8% 18 Legg Mason Asia 1,124,161 0.8% 19 Barclays Global Investors 1,029,758 0.7% 20 Jenkins Investment Mgt 1,022,123 0.7% Total 73,655,290 50.6% Becton Investment Management
  6. 6. Becton Property Group — Overview continued Total assets – $ millions Gearing – Loan to valuation ratio (LVR) $900 45% $800 40% $700 35% $600 30% $ M illio n s $500 25% $400 20% $300 15% $200 10% $100 5% $0 0% 'June 2006 'December 2006 'June 2007 'June 2006 'December 2006 'June 2007 Becton Investment Management
  7. 7. Becton Property Group — Becton Investment Management • $1.3b funds under management • 16 investment vehicles: three sector funds; one diversified fund; 11 single property funds; 1 mezzanine fund • Four open funds • 72 properties across office, retail, industrial, hotel and healthcare sectors • More than 6000 investors Becton Investment Management
  8. 8. Example of Becton Office Fund structure & cash flow Investors Distributions $16m Becton Becton Office Fund manager Mgt Fees (BOF) $2m Rent after interest $18m Senior debt Properties Interest $12m Rent $30m Tenants Becton Investment Management
  9. 9. Differences between Fincorp and Becton Property Group Fincorp Becton Property Group ASX-listed (Independent directors; independent audit; independent compliance committee) Gearing 100% 40% Track record 6 years in business 30 years in business < $50m completed projects $4b completed projects 60 employees (at peak) 300 employees Director and $0 $150m employee investment Annual profit Loss ~$50m Becton Investment Management
  10. 10. Becton Office Fund — Fund overview Fund size $374.91 million Number of properties 13 Number of tenants 132 Average lease term in portfolio 2.75 years Vacancy (excludes rent guarantee) 5.35% Unit price $1.0550 2006/07 distribution target 8.7 cpu 2006/07 monthly return target 8.2% p.a. Becton Investment Management
  11. 11. Becton Office Fund — Geographic overview Geographic diversification by gross income (%) ACT VIC 10.6% 11.8% NZ SA 8.1% 5.5% NT 5.5% QLD 6.3% NSW 52.1% Becton Investment Management
  12. 12. Becton Office Fund — Tenant diversification Tenant type by gross income (%) Rent Casual car Guarantee parking 3.3% 0.3% Government 22.9% Public 34.7% Private 38.8% Becton Investment Management
  13. 13. Becton Office Fund — Top tenants Top tenants by gross income Telstra Corporation 11.62% Dept of Immigration & Citizenship 9.82% Northern Territory Government 5.44% Allianz Australia Services Pty Ltd 4.31% Westpac Banking Corporation 4.27% NSW Land and Housing Corporation 2.92% Liberty Oil 2.87% Southern Star Group 2.55% NSW Dept of Ageing Disability & Home Care 2.30% Wilson Parking Australia Pty Ltd 2.22% Becton Investment Management
  14. 14. Becton Office Fund — Assuming $10,000 investment since inception Note: Performance calculations are based on reinvestment of distributions. Distribution reinvestment option is not currently available for this fund. Becton Investment Management
  15. 15. Becton Office Fund — 2 Elizabeth Plaza, North Sydney, New South Wales ● 13 level office building ● North Sydney office market ● Purchase price – $53.9m (Purchased 26 Feb 2007) ● Valuation – $53.9m ●20 tenants including United Group Service, Sterling Commerce, Wilson Parking ● Occupancy – 89% Becton Investment Management
  16. 16. Becton Office Fund — Railway Parade, Burwood, New South Wales ● Two office buildings – 8 levels each ●Suburban Sydney office market ● Purchase price - $71.125m (Purchased 26 Feb 2007) ● Valuation - $71.125m ●10 tenants including Telstra Corporation, Centrelink, Department of Ageing, Disability and Home Care ● Occupancy – 97% Becton Investment Management
  17. 17. Becton Office Fund — Benefits for investors • Strong yielding investment – a yield of 8.2% per annum^ • Regular distribution return – a regular income stream is provided by monthly distributions • Strong diversification – more than 130 tenants in 13 office properties; well diversified in eleven different markets • Tax deferral – income 100% tax deferred for the twelve month period ending 30 June 2006* • Liquidity – withdrawal offers in March and September maximum 5% per annum. ^ Based on a unit price of $1.055 as at (30 June 2007). The unit price is subject to review each month * Please note historical performance is no indication of likely future performance Becton Investment Management
  18. 18. Becton Office Fund — Benefits for investors continued • Becton Co–investment – Becton has a 45% interest in the Becton Office Fund (approx $85 million). This co-investment provides a strong alignment with other investors in the Fund. • Independent Research – the Fund is rated by Lonsec: Recommended (Lower End)* and Aegis (Recommended). • Strong Outlook for Office Sector – Vacancy likely to drop further, rents continue to grow strongly, yields likely to tighten further, albeit at a reduced rate (Source: CBRE). * = in the range of 75-80; the Becton Office Fund scored 77.3. Becton Investment Management
  19. 19. Becton Office Fund — Liquidity explained • Investors can redeem their units in March and September every year • Maximum amount is 5% of the value of the Fund, per annum • Limit is to protect investors to avoid fire sale of assets to meet liquidity – long-term investment • Redemptions to date have been less than 2.5% of Fund value in any one year • Redemption costs 5% of amount redeemed Example • Current Fund Size = $375 million • Annual liquidity = $18.75 million can be redeemed annually • If more than 5% of the Fund want to redeem then investors are redeemed on a pro rated basis Becton Investment Management
  20. 20. Becton Office Fund — Tax Deferred explained • Monthly payments are tax-deferred • In 2006/07, this was 100% for the Becton Office Fund Example If an investor received $10,000 in income for 06/07: • 100% tax deferred means no tax is payable for that year on the $10,000 • It is simply deferred by reducing the investor’s capital base and therefore paid as part of the capital gain tax when the investment is sold. Becton Investment Management
  21. 21. Becton Office Fund — Capital guarantee Becton will guarantee your initial upfront investment, less any investment earnings, over the three-year period. Upfront Investment Year 1 Year 2 Year 3 Total Capital investment earnings investment guaranteed earnings Example 1 Most probable outcome Capital $10,000 invested Annual income 8.25% $825 $825 $825 $2,475 Invest Redeemed $12,000 Total Received $14,475 Amount guaranteed at the end of year 3 Not applicable Example 2 Unlikely outcome Capital $10,000 invested Annual income 0.00% $- $- $- $0 Invest Redeemed $5,000 Total Received $5,000 Amount guaranteed at the end of year 3 $5,000 Becton Investment Management
  22. 22. For further information: Website www.becton.com.au (click on ‘funds management’) Phone 1800 182 257 (9am-5pm) Write 6 / 470 St Kilda Road, Melbourne 3004 A copy of the product disclosure statement is available on the website and will be posted to you in the coming weeks Becton Investment Management

×