Good morning everyone, and welcome to Finbar's investor webinar for the full year 2026 financial results. My name is Elodie Castagna from FTI Consulting, and with me I have the CEO of Finbar, Ronald Chan.

Finbar lodged its full year financial results this morning, both ASX announcement and the investor presentation, and Ronald will take us through the results presentation and the company's strategy as well. Today's webinar allows people to ask questions, and you can do so by submitting your questions into the GoToWebinar platform.

You'll see a question mark box at the top of your screen where you can submit questions during the webinar. Now, I'll hand over to you Ron, Ronald, to give an overview of the presentation and today's results.

Good morning everyone, and thank you for joining. This is Finbar's first time doing a webinar, and it's great to see shareholders registering in today as well as non-shareholders, which is great.

There's a few familiar names on the attending as well, it's great. We released to the market our announcement as well as our presentation, which I'll go through.

I hope you had enough time to run through it, but as Elodie mentioned, certainly ask any questions that you may have at the end of this presentation. For people that are not familiar with the company, I'll just run through you what we've done and our history as of today.

As you can see from this aerial image, we are very much concentrated in the CBD area within a 5 to 10 km kilometer radius. We've delivered 80 completed projects amounting to over 7,600 apartments.

We have a 100% delivery track record and certainly an acceptable product in the marketplace. As I mentioned, we've listed on ASX since 1995 with a remarkable 31-year track record as a property developer, 80 apartments projects completed with 31 years of profit consecutive.

Today, we have delivered $4.5 billion in the marketplace. Certainly we are the largest apartment developer in the state of Western Australia, and we certainly have a driver for our brand in the marketplace.

A snapshot of our FY '26 results and operational highlights. I'll go through this in detail in the next few slides.

You can see our total revenue, although it's down at 28.2% year-on-year compared to $284.5 million FY '25, our net profit after tax has increased 40% to $20.3 million. That's a result of our Bel-Air project completing, which came in just before the financial year, where we saw 53% of that development settle within that period.

Our underlying net profit after tax is sitting at $22.1 million, that's before revaluation. Our earnings per share is sitting at 7.4 cents, which is a 40% increase year-on-year.

We've declared, as you've seen in the announcement, a 3-cents fully franked dividend, taking our FY '26 dividend payable to 5.5 cents. Our borrowings have reduced down 72% as a result from the payback of our facility at our Karratha as well as our office assets.

Our NTA per share has increased 2.2% to 94 cents. We're sitting with a strong cash balance of $50.7 million, up 40% year-on-year, and our gross profit margin is sitting at 20.2%.

Settlements for the financial year, we've settled 287 lots amounting to $263.7 million. As I mentioned, that's down from the prior corresponding period.

However, we're seeing only one development settle, which is 53% during the period, which indicates a strong, successful project at our Bel-Air development. Pre-sales is sitting at $567 million, which is a record for us over the period.

That's 92.8% year-on-year increase. Under construction, we have 615 lots valued at $515 million under construction, which is a 30% increase year-on-year.

Sales for off-the-plan and completed stock is sitting at 566 lots, which amounts to $528.8 million, which is 124% increase year-on-year. Our development pipeline has also increased $900 million, which now sits at $1.8 billion amounting to 1,700 lots.

During the period, we launched three projects valued at $411 million, 482 lots, which are 80% sold across the board. I'll drill down to the financial results.

As indicated, 566 lots sold during the period, which includes our Pelago assets. We're now only sitting with 15 units at Pelago, which is a successful sell-down of that asset as well as paying back the loan on the facility on that project.

Settlement-wise, 287 lots, that's down 18%. However, that's on the back of Bel-Air, as I mentioned, where 53% of the product settled during the financial period.

We're sitting at a gross profit of $41.2 million, which is up 20%, which is 20% prior to the year at 12.1%. Other income, we've divested business, as you would have read in our announcement with a divestment of Finbar Rent, we've seen that income drop.

As well as our administration costs has also lowered by 27% as a result from restructure of the business and lower operational overheads. Net revaluation, we've seen a decrease in the revaluation in our office assets, but also an increase in our Pelago assets, which is netting at $2.6 million.

Operational profit sitting at $27.5 million compared to $21.3 million, and our finance costs has also reduced as well. As a result, profit before income tax is sitting at $28.5 million with a net profit after tax of $20.3 million, resulting in a 7.44 cents earnings per share.

In terms of our balance sheet, the decrease in our total assets is a result of the sell-down of completed stocks as well as assets held for sale, which is partially offset by increase work in progress, land acquisitions, and cash reserves. Our net assets is sitting at $257.1 million, and cash and term deposits, as mentioned prior, is sitting at $50.7 million.

Loans and borrowings have also reduced, as I mentioned before, with the payback of facilities at our office assets and our Pelago asset as well. Our NTA is sitting at 94.5 cents, up 3 cents year-on-year.

I'll move on now to development sales activity. The total value and lots sold for financial year, as mentioned, $529 million, 566 lots.

You can see from the graph since 1996 that we're at record levels. We're averaging 1.4 sales per day, which is 126% increase over the year.

Total value and lots settled for financial year, $263.7 million settled during the financial year, comprising of completed stock at our Pelago asset in Karratha and our Bel-Air project, which as I mentioned settled 53% during the financial year. Our total current pre-sales is at record levels since 2016, sitting at $567 million, comprising of $495 million in off-the-plan stock, $71 million in completed stock, which comprises of a few units at Civic Heart, Aurora, The Point, and the balance of Bel-Air stock, which were selling this financial year, which mostly all but 10% are yet to settle.

As well as $1 million in Pelago, Karratha that are due to settle. Completed stock sell-down over the financial year, we sold $77 million in completed stock, which again comprises of our Civic Heart, Aurora, and The Point, but excludes our Pelago asset, averaging $6.4 million per month.

Investor sales activity over the period, you can see a call-out of our project logos, it's when the project launched. During 2026, as and when we launched project to the market, you can see an increase in investor activity, resulting in the Q2 period at 58% investor activity.

First-home buyers, as what we've indicated, Finbar targets the mid-tier market, and with the launch of our Palmyra West project bringing in more affordable product, we've seen increase in first-home buyer activity sitting at 14% for 2026. Repeat buyers, as a part of our Loyalty Club program, we continue to see Loyalty Club buyers reinvest into new projects, and you can see year-on-year with the current period reaching 28% of repeat buyers.

At our Romeo project, we've seen 50% repeat buyers coming back in. It's a good indication of the strength of our brand and the trust that our buyers have in the company.

I'll move on to our completed projects where I'll just indicate again what we have on stock. What we have at our Civic Heart project is two residential and one commercial.

The Point still has four commercial remaining. Aurora, $9 million in value comprising of four residential.

Bel-Air, the balance of units yet to settle as well as some fallovers that happened in that project, which we saw fallover rate of just 8%. It's a good indication of where the market's sitting for Bel-Air as we've seen prices increase 20% since we've launched the project and the market acceptance of the resales that are happening there at the moment to first-home buyers in the marketplace.

Assets held for sale are 88% sold with only 15 units left to sell, which we intend to bring to market in the next few weeks. Projects under construction.

Garden Towers in East Perth is nearing completion. We will see that project finish in October this year with settlements happening first half of 2027.

That project total value sits at $296 million, 342 units, which is the largest project that Finbar has had in its books. 81% sold in that project, comprising of 59 residential and seven commercial.

Riverena, under construction, coming up to typical floor. We are 97% sold, and $4.2 million value remaining, which only comprises of four residential units.

Palmyra West, a $100 million project, 130-unit offering, 85% sold, which we've seen increase in first-home buyers in that product, averaging about $730,000. Romeo, which we launched to the market earlier this year, 60% sold, $90 million in value remaining, comprising of 64 residential units.

We will commence construction next month in September with anticipated completion in FY '29. Projects in the pipeline.

Parkside in Rivervale is the last landholding that we have in the Springs precinct. That's a small 108-unit project, total value is $73 million.

We are about to launch that to the market in the next couple of weeks, bringing in an average price point of $750,000. West Leederville, which we recently got DA approval, we aim up to launch this project in around November this year.

That project total value sits at $266 million, 246 units, or 244 residential units and two commercial. Lyle Street, we're going through DA process of that, but we anticipate launching that to market in the first half of next calendar year.

ABC heritage, we're exploring options there, waiting for the scheme to change in the Perth city center. Beaumont Street, which is on the back of our Lyle Street project, a significant foothold in the South Perth precinct, which we're familiar with.

That project will end with $402 million in value, which will comprise of 303 units. There's a leaseback on that unit for two years, you can see on our pipeline in the last few pages, you can see where that project sits.

In terms of our five-year development pipeline, we have a robust pipeline of $1.8 billion amounting to 1,700 units. As mentioned, the completion of Bel-Air, we have 53% settled within the last financial year with the balance currently settling.

Garden Towers, completion in October, which we will see settlement happening that period. Riverena falling into FY '28, as well as Palmyra West, FY '28.

Romeo, starting construction next month, we'll see that completion happen in the second half of FY 2029. Parkside also launching to market, which we anticipate the construction commencement next year, which we'll see completion fall into FY 2028.

Leederville Residences will bring that to market in November this year, and that will fall into the end of FY 2029. Lyle Street, ABC, and heritage will follow thereafter, taking us to a healthy FY 2020 2031 time frame.

You would have also seen on one of our announcements the release of our Ascot site that came in just before we've prepared this presentation, but that project sits just 250 m from our successful Bel-Air project. We intend to bring a mid-tier affordable product to the marketplace, which we feel will carry about 200 units in that area.

We feel that area is ripe for development. It caters towards the mid-market, and the price point-wise is acceptable in the current form.

The outlook. Can see on the left of this presentation the projects that we have concentrated in the CBD area of Perth.

Under construction, as mentioned, Garden Towers and Riverena and Palmyra in white. Completed projects in pink or purple, which we hold very few residential units and commercial left, which we intend to sell in the next 12 months.

Projects that are due to launch in the marketplace being Leederville Residences as well as Parkside. The blue highlights Beaumont Street, ABC, and Lyle Street, which falls into our five-year development pipeline.

As mentioned, we intend to deliver a product that meets the mid-tier market with the recent acquisition of our Ascot site bringing on that affordable product. That will strengthen our pipeline to $1.9 billion, which is healthy and a good market acceptance for that product offering.

The market outlook. We continue to see strong migration of up to 1,000 people per week.

That's Perth WA is still leading all states and territories, 2.2% population growth over the 12-month period. We continue to see Perth perform very well compared to the other states with Perth dwelling values increase marginal by 0.1% and a decrease of only 0.3%, which is still performing better than the rest of the state.

We've got strong Perth growth year-on-year. We've seen 20.5% growth over the dwelling values versus the combined capital achieving just 3.9%, which is a good indication of where Perth market sits.

We feel that the level of price is manageable at this point, and it's good to see our price point meet the market. What we see in the WA apartment outlook is it's an annual growth reflecting 22% on apartments versus 18% on houses.

We're reinforcing the continued demand for affordable product in the apartment market space. First-home buyers are certainly looking at shifting their focus to apartments as opposed to land developments where build times may exceed their expectations.

Investor activity strengthened to new housing in WA. Investor finance activity in WA was 24.5% above the average for FY '26 in relation to the purchase of new erect dwellings.

Rental market continues to strengthen in WA. We've got low vacancy rate where we've seen 8.1% increase year-on-year with a gross rental yield of 3.8%.

I'll reflect back on our Bel-Air project where we are seeing rental asking prices for one-bedrooms achieving $700 a week up to $850 a week for a two-bed, two-bath. Certainly where we see the market is unless supply can be increased, the rental market and the asking prices will continue to be very high.

The market outlook, this is a three-month Cotality snapshot. You can see the highlights where the 25% and the 50% middle-marked dwellings saw marginal increase and decrease, which indicate affordability is a key issue in where we sit.

That's it for the presentation, if I can pass it on to Elodie to see whether there's any questions.

Yes, that's great. Thanks, Ronald.

We've received a few live questions. The first one is from Richard, saying, "Congratulations on the strong results.

What is the current margin profile for Garden Towers? Have there been any notably recent cost escalations on this project?"

The margin is still looking within our feasibility. Certainly that project has gone through half of the period of COVID, which ultimately has seen some price escalation, but it's manageable.

80% of the project has sold, 20% still remaining, which can compensate for the slight increase in construction costs. We're comfortable with that project and we're nearing the end of that project within the next eight weeks, so that project's sitting

okay. Great.

How have the selling conditions changed over the last few weeks? What are the required pre-sale hurdles to commence construction on the financial year '27 projects that the company has launched?

Have some of the selling conditions changed over the last few weeks, and any pre-sale hurdles for the new projects commencing?

We're certainly experiencing a decrease in sales activity as well as the whole of Australia. Ultimately, federal government changes to tax reforms have put investors on the sidelines.

Recently, we've seen an increase in activity on sales on certainly our Bel-Air project with the completion product attracting more first-home buyers, as well as our Romeo project attracting owner-occupiers to that marketplace. How I see on our future projects that are due to launch is that our product offering is on par with market acceptance and price point.

West Leederville is going to bring in a mid-price point of about $1 million compared to the median house price in the area at $2 million. I'm confident that our product meets market, and there's very few competitors that can operate in our space.

It is projects that are in good location, good amenities. Since we've announced our DA approval, we've had an increase in registrations of interest in that project.

Great. Another one, a live one from Timothy: "Why hasn't Finbar moved into the luxury apartment market?"

That's always a questions that's asked, but if you look at our history of what we've delivered over the 30 years, we've delivered a vast array of product offering to mid-market, affordable product, to as well as luxury project. Our Civic Heart comprise of one-bedrooms, two-bedrooms, larger three-bedrooms, as well as penthouses up to $9 million.

We are in that space. We feel that level of the market has a bit of a slowdown in if the market changes.

The bread and butter of what we deliver is the mid-market, and that's 80% of the general market as well. I feel that first-home buyers and homeowners should have the ability to afford housing, and that's what Finbar is catering to.

Another live question: "Will management consider share buybacks as part of its capital allocation strategy?"

This is to be discussed and agreed by the board, but it's not something that we have considered for the time being. Not yet.

Then

a pre-submitted question that we've received is, "How does Finbar view the outlook for Perth's apartment market over the next 12 to 24 months given the housing undersupply and the higher interest rates?"

Government federal tax changes, it's going to be targeting to investors to new builds, so that's a benefit to us. As well as state incentives such as stamp duty relief for off-the-plan projects places in a good position for us to deliver product.

As well as I mentioned, the product offering that we're catering to the general 80% of the market has a larger attraction, we'll see a larger take-up. I feel that our product offering is key to deliver the mid-market product and buyers acceptance.

And,

"What are Finbar's key operational priorities in full year '27, and what milestones should shareholders and the market be looking at?"

We've got a healthy five-year pipeline with strong pre-sales, already 80% pre-sale over the project. It's ensuring that our projects complete on time as per our pipeline, as well as achieving development approval for projects that are yet to achieve that and to streamline launching that to the marketplace.

Projects such as our Ascot acquisitions, it's in an area in Belmont where we feel the council is a lot more forgiving for development. We're looking in areas where the time frame to carry out approvals to launching and to carry out construction will be a shorter time frame than what we traditionally see.

Identifying sites as well as ensuring projects are delivered on time. Another question is,

"What is the company seeing in terms of buyer inquiries and sales across its portfolio, and has the mix of owner-occupiers and investors changed recently?"

As I mentioned, we've seen an increase in owner-occupiers as a result from the completion of our Bel-Air projects, which have residual stock left from the result of some fallovers. In terms of split in buyer and owner-occupier profile, certainly our owner-occupiers are sitting higher with investors sitting on the fence.

That profile will change as and when we launch new projects. Over the period of a 10 10 year, we average out 40% investors over the period.

Investors are a key to our project launches, and I feel that it's due in the game to invest.

Excellent. We doesn't seem that there any more live questions.

If that's the case, then well I'll pass it back to you Ron to provide some concluding remarks and wrap up the webinar.

Thank you everyone for joining this webinar. We intend to carry on doing this more to give more of an insight and connection with me to our shareholders as well as incoming shareholders.

Look out for this recording on our investor hub on Finbar's website. Thank you for joining.