Ann: Change of Director's Interest Notice, page-4

Hi Phoenix​

The top 20 holders already held more than 70% but those directors do seem to be quite keen lately - John and Ronald Chan have been buying in tandem in convincing amounts and the buys have grown to 50,000 share lots since May 19th ( after Thorney said it had dropped to 10.58% on May 17th)
But they were buying steadily before too…

…And WAM said it had gathered around 23.8 million shares up to April 21st (8.68%) with Westoz out of the company the same day..
(that flummoxed me a bit at first because I looked in here tonight on the basis of a ‘warm’ snippet from Euroz Hartley dated August 30 last year but now - without reading the notices properly - I figure it was because WAM bought Euroz’ two funds around then)

Spoiler : Snippet herein

https://investorinsight.com.au/investors-drilling-for-gold-inner-city-apartments-well-rewarded/
30/08/21
…. Despite COVID impacting investor sales and immigration, Finbar sold 486 apartments during the year, both finished product and off the plan, for $296 million in sales revenue. The Finbar share of these sales was more than $150 million.
Euroz Hartleys analyst Gavin Allen rates Finbar as a buy, noting the company’s shares – at 79.5¢ last night – were trading below its NTA of 89¢.

Mr Allen has a price target of $1.17 for Finbar, considering it has completed stock becoming available at the recently finished 128-lot Dianella project to add to its existing available apartments, and it is gradually releasing investment stock in Karratha for sale into an improving residential property market.

The $1.17 share price target represents 14 times forecast earnings per share for 2023.
Mr Allen said the sales levels being generated by Finbar point towards increasing profits in future years as major projects Civic Heart in South Perth and AT238 in the CBD contribute to a step-change in growth.
As well as Civic Heart and AT238, which are both under construction, Finbar and its development partners have committed to commencing major projects in Applecross and Rivervale in FY22.
“We are focused on bringing completed stock to the market in a sales environment which continues to be very active from owner-occupiers seeking immediate occupation,” Finbar managing director Darren Pateman said.
“This strong sales and settlement cashflow environment we have experienced since April 2020 has allowed us to not only reward shareholders with an increase in our dividend this year but is helping to bring forward the commencement of new projects with less debt and therefore lower pre-sale thresholds. This gives us a significant competitive advantage in our marketplace.
“Our strong cash position, combined with the support of our development partners who are as equally prepared to financially commit to bring completed stock to the market, gives us the confidence to start the new projects in Applecross and Rivervale and we expect both of these projects to be well received by potential buyers, particularly on completion.”
Mr Pateman said last week the company was averaging about $12 million a month in apartment sales this calendar year.
This figure was supported by Euroz Hartleys, which said available data showed the fourth quarter of FY21 was the strongest for apartment sales in Perth since 2016….”

To share some more background stuff;

Here’s a link to the useful ASX overview; https://www.marketindex.com.au/asx/fri

And FRI closed on it’s yearly low today ..
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But it was not the Covid low …
(Though already in downtrend since 2014?)
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And other background in the spoiler for any other small cap ‘I’ve got FRI on my mind’ newbies ;

Spoiler : a few reports from The West Australian

https://thewest.com.au/business/com...th-development-despite-price-rises--c-6818618
Square metres: Finbar on track for $243m East Perth development despite price rises

Kim MacdonaldThe West Australian
Wed, 18 May 2022 12:25PM
Comments
Kim Macdonald


An artist’s impression of Finbar’s Garden Towers development in East Perth. Credit: supplied

Some development proposals are being reassessed in light of recent construction price hikes, but Finbar confirms it is on track to start the $243 million Garden Towers development in East Perth early next year.

Finbar managing director Darren Pateman confirmed construction costs for its developments had jumped, but claimed to have suffered less of a hike than some of its competitors.

“We are seeing 20 per cent increases in construction over the last 12 months, however we are slightly more insulated than the rest of the industry due to our working relationship with our primary contractor,” he said.
The company had presold 35 units from the East Perth development, worth $21.5m.
The complex will include 331 apartments, as well as 13 commercial retail, food and office tenancies.

Mr Pateman said some of his confidence in proceeding with the development was due partly to the return of investors to the market.
Investor loans in WA have jumped to nearly $750m in March this year, up from $200m in January 2020.

He said there had also been enquiries from owner-occupiers, including a lot of interest from outside of Western Australia.
“East Perth hasn’t seen a project launched since we released AT238 more than two years ago,” Mr Pateman said.
“Coming off a strong rental market, we expect investors to return, as well as a strong owner-occupier market.

“We are already seeing strong overseas and interstate demand as Perth median unit prices remain amongst the lowest in Australia, however we anticipate local buyers will make up the majority of sales.”

He said Finbar’s overall sales in the first quarter had been pleasing, with 150 recorded sales since the start of the year across it projects in Dianella; presales for The Point in Rivervale, AT238 in the CBD, which is due for completion this year; Aurora in Applecross; and the landmark Civic Heart apartment towers in South Perth.

He said off-the-plan sales helped some people get around the main obstacle to entering the market — the deposit.
“Buying ahead of construction and completion gives them time to save for an appropriate deposit as well as locking in a price in a rising market,” he said.
“Construction and material costs are rising ahead of inflation and REIWA research shows a number of proposed developments are either delayed or unlikely to proceed.”

Spoiler : Back in pre-Covid days in late 2019

https://thewest.com.au/business/com...ersial-perth-developers-finbar-ng-b881280533z
Darren Pateman: The man behind controversial Perth developers Finbar

Kim MacdonaldThe West Australian
Tue, 6 August 2019 7:15PM
Kim Macdonald



Sitting in his office — in the most densely populated residential pocket of Perth — Finbar boss Darren Pateman is surrounded by 3000 apartments within a 500m radius.
The view from the Fairlanes building on Adelaide Terrace is not what it used to be, now that Finbar’s Westralian, Toccata, Adagio, Reflections — East and West — and Concerto developments have crowded out some of the vista.
“But you can’t complain when they are your own developments,” Mr Pateman said.
Since 1994, the former real estate agent has helped oversee the rise of the company into one of WA’s biggest and most controversial apartment builders.
But having developed so much of the city — almost singlehandedly creating a residential hub on Adelaide Terrace — where will Finbar go next?
Mr Pateman, the managing director, says the ASX-listed company has its eyes on the western suburbs, where it hopes to get involved in smaller boutique developments.
“There is going to be a lot more boutique-style projects as empty-nesters want to move into larger apartments, and stay within their networks and social networks that already exist in the western suburbs — I think you’ll see a lot more boutique project occur in those locations,” he said.
But he stresses that Finbar for the most part, plans to stay in the realm where it has a competitive advantage — with “scale” projects on the CBD fringe.
The lay observer may think there is little room left for new apartment blocks in the city, but Mr Pateman said many buildings, particularly on Hay Street, have reached their use-by date and are due for demolition.

Darren Pateman from Finbar. Credit: Daniel Wilkins
“Tall buildings require a particular skill set, capital needs, and a level of risk that is very familiar to us but provide barriers to entry for many others. For this reason we do like this zone in particular.
“We have several sites in Rivervale already, in The Springs precinct, which we will progressively develop in the years ahead.
“It is a very affordable location, close to the city, airport, close to transport and the new stadium.”
Finbar is one of Perth’s more controversial developers. First, it used builder Gerry Hanssen’s non-unionised workforce on its towers in the city — which broke the construction union’s last bastion of control.
Mr Pateman said using non-unionised labour was important in creating “affordable” city apartments.
When challenged on whether Finbar’s city apartments were affordable, he said: “You can pick up an apartment in Vue (towers) for $600,000.”

Finbar's Sabina at Canning Bridge Credit: supplied Finbar
In 2012-13, Finbar was involved in another controversy when the Barnett government was accused of supporting the company — a donor — when it bought $30 million worth of apartments at Finbar’s Pelago Towers in Karratha, in a move which helped get the project off the ground.
Then there is South Perth’s Civic Heart project, originally approved in May 2015 as a $380 million, 38-storey mixed-use tower, with 11,900sqm of commercial office and retail space.
In February 2017, Finbar withdrew the application, citing uncertainty over the council’s town planning scheme.
A second smaller design was not approved by the “underwhelmed” council.
The planning scheme was changed to allow its latest offering, a $150 million development comprising two towers of 39 and 22 storeys, containing 309 apartments and 25 ground-floor commercial tenancies.
During the course of the three designs, some locals have objected — either officially or in private — about issues such as the impact on the local trees and on local traffic, and to the size of the development.
Mr Pateman claims of all his projects, Civic Heart has provided the most public benefit in return for height trade-offs, including a food and beverage promenade between the heritage-listed police and post office that Finbar will preserve and renovate.
He claims Finbar’s consultant’s traffic report said the building would not have a material impact on surrounding developments.
The application is before the Metropolitan Joint Development Assessment Panel.

Finbar's Vue Tower on Adelaide Terrace in East Perth Credit: supplied Finbar
Whatever the outcome, it has been a wild ride for Mr Pateman, who joined as a 25-year-old office administration clerk.
His early days were spent working with John Chan and his former business partner Richard Rimington out of a three-bedroom apartment in Como.
Within six months, the trio listed the company on the ASX with $2 million net equity.
Mr Pateman became secretary in 1995, and chief executive 13 years later in 2008.
To date, he has overseen the construction of 71 complexes, comprising nearly 6000 apartments, and worth $3.42 billion (not adjusted to present value).
Three current projects, with 418 apartments, will take the total unadjusted end value to $3.64 billion.


11/09/2019 Pateman rated 5th most of the 50 most powerful real estate people in WA
https://thewest.com.au/business/pro...n-the-states-property-industry-ng-b881318547z

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And finally …
Wikipedia says ;
“Finbar is an Irish given name that may also be spelled Finbarr, Finbarre, or Finnbar. It is derived from Fionnbharr, an old Irish word meaning "fair-headed one". The anglicised, shortened translation of Finbar is Barry.”

Cheers