Thank you for standing by, and welcome to the Australian Unity Office Fund HY results. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. I would now like to hand the conference over to Mr. James Freeman, Fund Manager. Please go ahead. Thank you. Good morning, everyone. Thank you for joining us, and welcome to the fiscal year 2021 half year results announcement for the Australian Unity Office Fund. My name is James Freeman, and I'm the Fund Manager for AOF. Today, I am joined by Simon Beake, the Portfolio Manager for AOF. Earlier today, we published various documents on the ASX, including the interim report for the half year ended 31 December 2020, Appendix 4D, AOF property book, and the investor presentation, which we'll go through this morning. We anticipate the presentation will take about 20-25 minutes, followed by Q&A. Before we start, I would like to take this opportunity to acknowledge the traditional custodians of the land our properties are located on and pay my respects to elders past, present and emerging. Turning to slide two. It is important to note that the information in this presentation is general information only and should be read in conjunction with the report lodged with the ASX earlier today. Turning to slide four. Today, Simon and I will take you through the AOF half year results. AOF has performed well with increasing occupancy levels, robust collections and minimal future fiscal year 2021 expiries, enabling fiscal year 2021 FFO guidance to be provided. We will discuss what we are seeing in the marketplace and the focus by tenants on cost-effective accommodation, working closer to home with an increased preference to drive, and the need for staff amenity. The AOF portfolio is well constructed to meet these demands, with a focus on affordability, amenity and accessibility, which we believe positions the portfolio well to outperform in the current environment. The operating environment is improving, with key economic indicators turning positive, such as business confidence, sentiment, forecast GDP and employment levels. COVID-19 is well under control in most states and the vaccination program has commenced. It is no surprise that office utilization rates are showing an upward trend. Across our portfolio, we are seeing good levels of activity from the SMEs, assisting in increasing our occupancy rate. While larger tenants to date have been assessing their requirements, we expect them to make decisions in the near future as their accommodation requirements become clearer and their expiries approach. Turning to slide five. For the half year to 31 December 2020, the funds for operation, or FFO, were AUD 0.092 per unit, and distributions were AUD 0.075 per unit. Leases or heads of agreement have been reached for approximately 12,000 sq m, equating to 11.1% of the portfolio NLA, driving a 1.6% increase in occupancy to 95.3%, and a reduction in fiscal year 2021 expiries to 2.7%. The full portfolio was independently revalued, resulting in an AUD 11.4 million increase since June 2020. The fund's NTA increased by AUD 0.05 per unit and gearing reduced by 0.5% to 30.7%. Given the underlying strength of the portfolio, with limited vacancy, minimal fiscal year 2021 expiries and strong collections, earnings guidance of AUD 0.183-AUD 0.187 per unit for the full year is provided. Distribution guidance of AUD 0.15 per unit is reaffirmed, which, based on the closing price last Friday, equates to a yield of 7.1%, attractive in the current low yield environment. This guidance is subject to no material change in market conditions, no material change to the portfolio, and no unforeseen events. Turning to slide six. Throughout the pandemic, AOF's collections have remained robust, with collections of billings, including payment of arrears, averaging 98.3% for the six-month period to 31 December 2020. Significant progress has been made on finalizing rent relief negotiations with tenants under the National Code of Conduct for Commercial Leases. As at 31 December 2020, outstanding tenant requests for proportionate rent relief have reduced by approximately two-thirds, from 16% to 5% of tenants by average monthly gross income. Rent waivers totaling AUD 451,000 were granted during the half year, with a further AUD 298,000 of rent deferred. Turning to slide eight. The profit for the half year is AUD 20.1 million, down slightly on the prior corresponding period due to lower revaluation increases and the impacts of straightlining of rental income. The half-year profit and FFO includes a AUD 473,000 doubtful and bad debts provision, equivalent to approximately AUD 0.003 per unit. FFO was AUD 0.092 per unit, and distributions of AUD 0.075 per unit were payable for the period. As previously announced, the full portfolio was independently revalued, which contributed to an increase of AUD 0.05 per unit in Net Tangible Assets. Turning to slide nine. The capital structure of AOF remains robust. Net borrowings of AUD 209.5 million provide significant headroom to the AUD 250 million facility limit. Gearing slightly reduced over the period to 30.7%, and the interest cover ratio increased to 4.5x, providing adequate headroom to AOF's target gearing range of less than 40% and 2x ICR covenant. Debt is diversified across three tranches and two major banks, with the next maturity in October 2022. The dividend reinvestment plan was activated for the September quarter distribution, allowing unit holders to reinvest their distributions into new units. Positively, we saw a 22% participation rate for the September quarter, increasing to 32% for the December quarter. Combined, this raised approximately AUD 3.3 million, further strengthening the balance sheet. Turning to slide 11 and portfolio positioning. The AOF portfolio is built around three key themes: affordability, amenity, and accessibility. The fund seeks to hold assets that are positioned in markets that have affordable rents, offer great amenity for staff, and are highly accessible or will benefit from future infrastructure investment. AOF's underlying allocation of 62% by book value to metropolitan markets and 38% to the smaller Australian CBDs positions it well for the future. The markets where AOF's assets are located have gross effective rents between 31%-49% of Sydney CBD. In a cost-conscious environment where employees are seeking to work closer to home, we believe these markets are well-positioned as they offer distinct cost advantage, while typically having great amenity and accessibility for staff. Turning to slide 12 and portfolio highlights. The well-positioned nature of the AOF portfolio has driven an excellent period of leasing in a challenging environment. Over 12,000 sq m of leasing and heads of agreement have been reached, driving a 1.6% increase in occupancy to 95.3% as at 31 December 2020. Renewal activity has been positive, reducing fiscal year 2021 expiries down to 2.7%, which is projected to fall to 2% once the current heads of agreement are finalized. As previously announced, the 7,000 sq m CPSA lease restructure occurred during the period, de-risking the tenancy by introducing two new medical and biotech companies to the portfolio while maintaining broadly the same annual tenancy income and extending one lease by a further three years. This resulted in an independent valuation increase of AUD 4 million to AUD 70 million, a 6% increase. It is worth noting that all portfolio leases typically have fixed annual rent increases of 3%-4%. Turning to slide 13 and leasing. As mentioned, over 12,000 sq m of leasing and heads of agreement were agreed, comprising 11,200 sq m of leases and a further approximately 800 sq m of heads of agreement, combined equating to 11.1% of the portfolio NLA. Macquarie Park was active. At five Eden Park Drive, in addition to the CPSA lease structure, we subdivided and spec fitted a tenancy on level 3. Pleasantly, one suite has been leased, leaving just one suite left to lease in the property. At the full-year results, it was noted that all of the fund's fiscal year 2021 expiries over 400 sq m were at 2 Eden Park Drive. I'm pleased to announce that three of the four expiries over 400 sq m have been let or under heads of agreement, leaving just unit five to be let up, which expires in June 2021. The asset is currently 100% occupied. In Brisbane, 241 Adelaide Street saw a particularly busy period of leasing, with eight transactions, four on vacant areas, with occupancy increasing by 9.5% to 95.2%. Pleasingly across the transactions, face rents were typically at or above independent valuations, with some increasing incentives on prior leases. Turning to slide 14, v acancy across the portfolio now sits at 4.7%. Management is focused on letting up the existing vacancy, and to date, there are several offers out over existing vacancy, which we are seeking to close out. Fiscal year 2021 expiries are down to 2.7%, which will fall further to 2% if existing heads of agreement are converted to leases. Turning to slide 15. Turning our attention now to the major expiries across the AOF portfolio. At 10 Valentine Avenue in Parramatta, Property NSW is the major tenant. They expire in June 2022 and have a five-year option to be exercised by 30 June of this year. We have been in regular dialogue with Property NSW, meeting with them as recently as last week. Property NSW are currently assessing their required footprint and overall space accommodation requirements. One of the challenges they face is they have many different agencies with a range of different requirements, which they are working through to determine where their staff will be based, how they will work, and how much space they need. Parramatta remains a core market for them due to the affordable nature of the market, while providing excellent transport amenity and staff amenity with Westfield, cafes, restaurants, and gyms. We have tabled various terms for renewal for them, and we are awaiting further guidance on their intended approach. We are working on a proposed refurbishment program for 10 Valentine Avenue to ensure it presents well and offers an A-grade attractive proposition to Property NSW or any other potential future tenants. At 30 Pirie Street, Adelaide, Telstra have been busy working through their space requirement. Telstra do not currently occupy all their floors. Of the 21 they lease, they have sublet five to a range of tenants. We're in regular dialogue with Telstra and expect discussions around their future requirements will ramp up shortly. Of note, Telstra have a series of five-year options over various tranches of the building, exercisable within 12 months of notice. We're currently working on a refurbishment program for the building to ensure the asset provides solid amenity to tenants ahead of the upcoming expiry. At 32 Phillip Street, Parramatta, the area will undergo a substantial transformation, with the Powerhouse Museum achieving state significant planning approval. We have been working on schemes to revitalize the ground floor to offer greater amenity and connectivity to the powerhouse precinct. This will be important to attract and retain tenants. GE currently lease the full building until June 2023 and have a five-year option to extend. They have currently sublet six of the eight floors to a range of subtenants. We are in active dialogue with GE and will seek to renew them and go direct with the various subtenants. At 150 Charlotte Street, Brisbane, Boeing's expiry is over three years away, and it's too early for them to engage in meaningful renewal discussions. Our focus there is on enhancing the building experience to position the building well for future discussions. All the proposed refurbishments will include a suitable response to the COVID environment, with elements such as touchless tapware, dispensers, doors, and digital connectivity to lifts and speed gates all considered. Turning to slide 16. As noted, all assets were independently revalued as at 31 December 2020, resulting in an increase of AUD 11.4 million above the 30 June 2020 independent valuations. The portfolio capitalization rate firmed by seven basis points to 6.02%. The valuers have had regard to the current environment. Valuations typically have lower growth rates, higher incentives, and longer downtime allowances compared to pre-COVID. For example, the average five-year compound annual growth rate reduced 0.7% at the June revaluations and a further 0.1% in December. Market downtime allowances have been included for all future expiries, including the major expiries. Turning to slide 17. At two Valentine Avenue, more progress has been made, with Buildcorp completing the first stage of early works. The asset has been revalued, and the combined 2 to 10 Valentine Avenue asset has increased by AUD 18.15 million since June 2020. Recently, we have been working with Fitzpatrick + Partners, our architect, to develop the combined building offering, linking 2 and 10 Valentine together. The initial concept utilizes the entrance of 10 Valentine Avenue for two Valentine Avenue, providing a direct undercover entrance to 2 Valentine Avenue. It also provides the ability to have a grand entry to both 2 and 10 Valentine Avenue and a full floor on level five in 2 Valentine Avenue as the arrival experience to provide tenant amenity, be it a cafe, third space, tenancy area, concierge, and/or security gates. Market feedback has been very positive, and we expect to lodge a development approval in the next quarter. This DA, should it be received, would be complementary to our existing DA, so we could deliver the standalone 2 Valentine Avenue, which is currently approved, or the combined building offering. Overall, the forecast yield on cost is 6.5% plus, as we have reassessed our feasibilities in line with recent market conditions and costs associated with the link should it proceed. To maximize our market coverage and give us the best opportunity to achieve a pre-commitment, Resonate Partners have been appointed as a joint agent with Colliers. Turning to slide 18. This slide shows the architectural drawings of the potential link between two and 10 Valentine Avenue. Moving from the right, tenants walk out of the train station into 10 Valentine Avenue, proceeding through the lobby and a cafe or other amenity space, and up the escalators to the level five garden lobby of 2 Valentine Avenue. This provides an enhanced tenant experience compared to walking along the pavement outside 10 Valentine Avenue and allows for maximum flexibility on level five of 2 Valentine Avenue. Turning to slide 19. Turning to other portfolio opportunities. As evident within the presentation, our Macquarie Park assets are performing well, with occupancy increasing, solid rents being achieved, and incentives remaining fairly low on a relative basis. Key drivers for this are the affordability of accommodation in the marketplace, with gross effective rents approximately 41% of Sydney CBD, the high accessibility to the market, with the market well serviced by metro rail, buses, and the M2 nearby, and high car parking availability, and the amenity the market offers with various gyms, cafes, and the major Macquarie shopping center nearby. The tenant composition of Macquarie Park consists of tenants typically in the logistics, healthcare, and IT sectors, which are less affected and in some cases benefiting in this current environment. As part of this, we are looking at future opportunities, and 2 Eden Park Drive currently has significant potential upside in terms of developable area. The current zoning allows an FSR of up to 3:1 for this site, which is currently developed to close to 1:1. There is also a strategic alliance, including the Department of Planning, Housing and Infrastructure and the Greater Sydney Commission, looking at the long-term zoning for the precinct, which may provide future opportunity. We will continue to participate in this alliance and also align the lease expiry to take advantage of future potential changes in the medium to long term, should they arise. In Parramatta, the Powerhouse Museum has recently achieved state significant planning approval, so the precinct around 32 Phillip Street will transform significantly. The light rail due in 2023 and the proposed civic link also serve to enhance the appeal of the precinct. As previously flagged, we're developing a scheme to revitalize the ground plane of 32 Phillip Street to enhance the amenity of the asset and leverage off the improving Powerhouse precinct going forward. As previously announced to the market, 241 Adelaide Street has been deemed a non-core asset due to the diminishing leasehold structure, and we have been actively seeking to divest the asset. We are pleased to announce we have a party in exclusive due diligence. Should a binding agreement be reached, we will update the market in due course. The proceeds would provide an opportunity to recycle the capital. Turning to slide 20. The environmental credentials of the AOF portfolio are a key management focus. An important objective of the upcoming refurbishment programs will be improving the environmental credentials, such as NABERS ratings. At two and five Eden Park, we have recently commissioned a total of 150 kW of solar to lower net energy consumption and improve the asset's environmental credentials. I will now hand over to Simon to talk through the outlook. Thank you, James, turning to slide 22 and the outlook. As we emerge out of the COVID-19 pandemic, economic indicators are positive. Real GDP is forecast to bounce in calendar year 2021 at 3.7% versus -2.8% for the prior year. NAB's business confidence hits +10 for January, above the long-term average, and business conditions sit at +7 after reaching a multi-year high of +16 in December. Employment is trending upwards at +3 for January, with finance, business, and property the highest sectors in January, a key driver of office demand. Turning to slide 23. Two COVID vaccines have been approved and are being rolled out. As more people are vaccinated, we expect concerns, particularly around public transport, to reduce. The Property Council of Australia is monitoring office utilization rates across the various states. It is pleasing to see utilization is typically trending upwards, with the smallest rates typically above 60%, and some as high as 80%. Across the AOF portfolio, our property management teams estimate office utilization rates are between 50% and 80%, with the exception of Melbourne, due to the recent lockdowns. Finally, with the official cash rate of record lows of 0.1%, there appears to be substantial support for asset valuations, as evidenced in recent market sales. With AOF market midpoint yields according to JLL in the range of 5.26%-6%, these markets offer a significant yield premium to cash and 10-year bond rates. Turning to slide 24. I am pleased to advise that due to the resilience of the underlying income stream, strong tenant covenants, robust collections, recent leasing success, and the limited near-term expiry profile, AOF provides fiscal year 2021 FFO guidance of AUD 0.183-AUD 0.187 per unit, and reaffirms the fiscal year 2021 distribution guidance of AUD 0.15 per unit, subject to no material change in market conditions, no material change to the portfolio, and no unforeseen events. Despite the well-positioned portfolio and underlying resilience it is demonstrating, the stock continues to trade at a significant discount to NTA. Today, we are also announcing that a strategic assessment is underway for AOF. Directors and management are focused on enhancing value and delivering the best possible outcomes to unitholders, and the strategic assessment will provide a framework to challenge the current strategy of AOF. The board has engaged Highbury Partnership to assist with the strategic assessment. We expect to communicate outcomes and conclusions to the market over the coming months. Turning to slide 25. Our focus remains on enhancing value and delivering the best possible outcomes to unitholders. To achieve this, the near-term priorities are to continue to let our vacant space and de-risk upcoming expiries, in particular, the major expiries. Close out the sale of 241 Adelaide Street and recycle the capital. Finalize the design and lodge the DA for the combined building option at 2 Valentine Avenue and to seek to lock in a tenant pre-commitment. Progress the strategic assessment, finalize rent-related discussions with eligible tenants and advance value add investigations and opportunities at 32 Phillip Street and 2 Eden Park Drive. In closing, we thank you for your time today and for your investment in AOF. We look forward to continuing to advance the fund's priorities and providing an update to investors in due course, with a focus on delivering the best possible outcomes. This concludes the formal part of our presentation. I will now hand you back to the moderator. Thank you. Your first question comes from Leanne Truong from Ord Minnett. Please go ahead. Good morning, guys. I was just wondering if you could provide or maybe comment on 241 Adelaide Street in terms of, I guess, potentially expectations. Should we be expecting around book value for that asset or can you provide an update on that or some comment? Thank you for your question, Leanne. Re: 241 Adelaide Street, we can't specifically comment on the price that's been set with the party that's in exclusive due diligence. I guess, the best indication of value as at 31 December is the current independent valuation, which is at AUD 31.5 million. Okay. Just, I guess, the next question. Just noticed that the tenants that are requesting rental relief has gone up from 11% to 16%. We're just wondering why that's gone up, given the environment's getting a bit better. We're opening up a bit more. Leanne, the total number of tenants requesting rent relief did increase from 11% at 30th of June. A number of tenants between July and September actually then became eligible. The total number of tenants applying for rent, proportion of rent relief increased up to 16%. In terms of the number of outstanding tenants, because we have finalized a number of those negotiations, the number outstanding is now down to 5%. Okay, just one final question. I guess, can you discuss what you're seeing in terms of leasing spreads or incentives, basically, on some of your leases that you've renewed or agreed as in rent relief? Yes, no problem. I guess it depends upon which market you're typically within. A lot of our leasing has been done within Macquarie Park, for example. Within two and five Eden Park Drive, we've typically been achieving the face rents or higher than our independent valuations have, and the incentives have typically ranged from about 15% through to about 25% net in that market. If we turn to Brisbane, 241 Adelaide Street, for example, where there was eight transactions during the half year. Again, we're typically doing rents at or above the independent valuation, typically around the AUD 600- AUD 610 gross face level. Incentives were typically around the 40% gross market rate, which is in line with what Jones Lang's quoting, I think, at this point in time for the Brisbane market. I guess other assets that have been active would be Canberra. Again, face rents have been largely in line with independent valuations, and incentives have typically been around the 20%-25% in Canberra. Okay. Thanks, guys. Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Murray Connellan from Moelis Australia. Please go ahead. Hi. Good morning. I was wondering whether you could give a little bit of color around the payout ratio that's implied by your FFO guidance. It's a bit lower than what you guys have typically paid out in the past. Is this something that we can expect going forward, or I suppose, how are you thinking about that? Yeah. Thanks, Murray. In terms of the payout ratio, as we previously stated, we would normally do a payout ratio of 80% - 100%. In the current environment, we've decided to go on the more conservative side. As such, the payout ratio for now is around 80%. In terms of the future, at this time, we can't really comment on what the payout ratio will be in fiscal year 2022. Given the current environment, we've decided to take a more prudent approach for this year. Thanks. Would you be able to just provide a little bit more color around the leasing environment at the moment in Parramatta? Obviously, a fair amount of development activity on the go there. I'm just wondering how that impacts your plans for the expansion of Valentine. Okay. Thanks, Murray. Yeah, look, at Parramatta, the lower end of the market or the smaller tenancy side of the market has maintained fairly active. At the larger end of the market, at the substantial pre-commitment side, that part of the market has been a bit slower. What we're finding is that the bigger corporates are taking their time to assess their current tenancy requirements and footprint required before making key decisions such as major pre-commitments. As far as our assets specifically, 2 to 10 Valentine Avenue, we are actually, as we touched on in the presentation, we're giving ourselves the best opportunity to obtain a pre-commitment by working on two things. First of all, we've brought Resonate Partners on as a joint agent with Colliers to make sure we maximize market coverage within that marketplace. Secondly, we're working up a DA for a combined building offering for 2 to 10 Valentine Avenue. That's in response to some market feedback around the size of the lobby on 2 Valentine Avenue. We feel we could create a much bigger, grander entry arrival experience with much more flexibility around speed gates and the like for 2 Valentine Avenue, as well as enhancing 10 Valentine in the process. That's a DA we're actually working up at the moment, and we expect to launch that in the next quarter. That's great. Thanks very much. Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. We will now wait for any final questions to come through. Thank you. There are no further questions at this time. I'll now hand back to Mr. Freeman for closing remarks. Thank you, everyone, for your time today. This completes the presentation. We'll make this webcast and audio call available on AOF website, australianunityofficefund.com.au, as soon as possible. Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.