ALE Property : 2017 AGM - Managing Director's Presentation Opens in a new Window

Annual General Meeting - 31 October 2017

Anglers Arms Hotel, Southport, QLD

1

• Highlights

• FY17 Results

• Properties and Development Updates

• Capital Management

• FY18 Outlook

• Current Value Proposition

  Crows Nest Hotel, Sydney, NSW

  ALE Property Group

  Delivering Value

  High quality properties

• Growing, long term and secure income

• Triple net leases

• Metro locations

• Operated as pubs for average 60+ years

  Strong and cost effective governance

• Experienced Board and management team

• One of lowest management expense ratios in sector

  2018

  Low risk capital structure

• Investment grade credit rating

• Long term and diversified funding maturities

• Long term hedging

  FY18 outlook

• Increasing distributions

• Distributions expected to be fully tax deferred

• Positive prospects for upcoming market rent reviews

• Continuing review of development opportunities

Year to 30 June 2017

$1,080.2m

Statutory property values

42.7%

Net gearing

$29.1m

Distributable profit

5.14%

Average capitalisation rate

4.7 years

Average debt maturity

20.40 cps

Distribution

11.3 years

Weighted average lease expiry

8.4 years

Hedge maturity

100%

Distribution tax deferred

1.5%

CPI income growth

4.26%

All up cash interest rate

$914.2m

ASX market capitalisation

100%

Occupancy

Baa2

Investment grade rating

22.9% p.a.

Three year total return

Capitalisation rates, lease terms, interest rates, maturity terms and rental growth rates are all weighted averages. Specific definitions are on other pages or in the statutory accounts.

Results are for the year ending or as at 30 June 2017.

In addition to the weighted average lease expiry term there are four 10 year options for ALH to extend (83 of 86 properties).