Highlights from the AGM - notes released this morning
Strategy: Profit and value are maximised when our businesses work together Becton is a fully integrated property group focussed on: • integration of our capabilities • capturing all profits • creating recurring earnings through management fees • de-risking our earnings • return on equity through co-investment • total security holder return
Development & Construction • Pipeline larger and more diverse with strong focus on retirement and commercial • $2.9 billion pipeline diverse by geography, sector and timing of delivery Updates: • Fincorp and Estate portfolio – Becton in control of all projects and transition smooth • Bonnyrigg – Works on site are programmed to commence in early 2009
Development Fund No. 1 – launched and equity-raising open Becton’s flagship development fund – first in a planned series and its highlights include:
• Becton’s best projects form Becton Development Fund No.1 • Alignment of interests due to co-investment by Becton • Target internal rate of return of 15% p.a. (post fees pre tax) • Becton has more than 30 years experience as a developer • Diversified by project, timing, geography and sector Retirement Development pipeline underpins growth • Strong EBIT growth with predictable future earnings • Development pipeline > 1,000 dwellings • Focus on greenfield development, in particular, in premium suburbs Funds management Profits doubled each year for past three years demonstrating scalability of business • EBIT of $17.4 million was 181% higher than prior period and 45% higher than prospectus • Total returns to fund investors averaging > 20% in FY07 • YTD October FY08 equity inflows 51% higher than prior period – track record and platform penetration a key driver of the growth • YTD October FY08 acquisitions (settled and contracted) at $234 million
BEC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
