Good morning, everyone, and welcome to the AVJennings two thousand and twenty-four financial results investor webinar. My name is Andrew Keys, and I'm facilitating today's webinar. At the conclusion of the presentation from CEO and Managing Director, Phil Kearns, and CFO, Shanna Suter, there will be a Q&A session. Attendees, I ask you, if you do have any questions, please drop them into the Q&A function, and I will gladly facilitate those for you during that session. Good morning, Phil. Over to you. Thanks, Andrew. On behalf of AVJennings, I'd like to acknowledge the traditional custodians of country throughout Australia and New Zealand, and recognize their distinct cultural and spiritual connection to the land, waters, and seas, and their rich contribution to society. We pay our respects to ancestors and elders, past, present, and emerging. Good morning, everyone, and welcome to the AVJennings full year results webinar for financial year 2024. Delighted to present the results alongside our CFO, Shanna Suter, who will provide insights into the company's financial performance. An overview of our financial year 2024 results include that we delivered a revenue of AUD 319.7 million, which is a 12% increase over the previous corresponding period, despite really challenging market conditions. Gross margin declined by 18% to 74.3 million, mainly influenced by higher costs and strategic change to our product mix with more built form. Normalized profit before tax fell 44% to 19.4 million. This excludes the termination of the option of the Roxburgh project previously announced. Importantly, we have significant financial capacity available, and if required, notably, we have AUD 102 million available from our Club Banking Facility. Next slide. 2024 had a number of strategic achievements for the business. It was a very productive year, marked by strategic decisions focused on improving the quality and future profitability of our portfolio. Some milestones achieved include some capital recycling initiatives to enhance our financial performance, including the termination of the Roxburgh option, which allows us to redeploy capital towards activating existing pipeline opportunities. The divestment of Glenrowan in Mackay, Queensland, and super lot sales at St Clair in South Australia reflect our commitment to optimizing our portfolio to enhance returns. Our merchant apartment profile settled as expected, with 67 lots completed in June 2024, valued at approximately AUD 60 million. Notable progress was made in improving our capital structure. We secured a AUD 30 million increase to our existing club banking facility, raising the limit to AUD 330 million, and completed the AUD 30 million equity raise in November to support the modernization of business. Our Pro9 joint venture is advancing well. The Australian manufacturing facility in New South Wales has begun production, and I will talk more about Pro9 for AVJennings, what it means for AVJennings in the industry shortly. Needless to say, we're super excited about its potential, and we could talk forever about what Pro Nine could do. A board refresh has also commenced, which will be important for the business. To complete this, here's a summary of our main P&L lines, and you can see here the impact of the termination of the option on the Roxburgh project. It's the difference between the normalized PBT and the reported PBT of AUD 1.6 million. You'll also see that there's no dividend paid, as the board continues to adopt a cautious approach to capital management, which is appropriate given the market conditions, and the board policy has always been to pay dividends from NPAT. In terms of our strategy, it has always been, and we've shown this slide a number of times, because we believe it's clear and a consistent articulation of our strategy, is about transforming, modernizing, and growing the business. So we have a flexible product offering around land, around built form, and low-rise apartments. We're modernizing our foundations around capital, technology, our people capability and our processes to gain efficiency and improve our return on equity and building annuity income, which we'll talk about Pro9, and we haven't yet gone into other living sectors as part of disciplined capital management. Our capital allocation really responds to market opportunities, and we direct our capital towards projects with the highest potential for growth and value creation. This is supported by the capital recycling initiatives I mentioned earlier, and you can see New South Wales has grown from 28% to 31% of net funds employed. As we see some green shoots beginning in New South Wales, Victoria is down 1%, but we still see long-term growth potential there. We're extremely positive about Queensland, and while South Australia has come down slightly as we recycle capital, we still see enormous growth opportunity in the South Australia area. On the right-hand side, you can see that more capital allocation remains for the built form, and we're gonna continue on that path. Here you'll see our diverse pipeline. We have 9,878 lots with five projects in New South Wales, five in Victoria, four in Queensland, two in South Australia, and one in New Zealand. It's very geographically diverse and a great product mix across the portfolio and in those communities, which will underpin our growth for the future. Cadence is a great example. Cadence is in Queensland, where we have a really interesting product mix, from turnkey homes and land packages to detached and terrace and townhomes. This gives different price points across the project, with land from AUD 315,000, and homes from AUD 560,000, which attracts different forms of customer. So from first-time buyers to upgraders and downsizers and the investor market, so a very broad customer appeal there. So we get lots of foot traffic, lots of inquiry, and there are really strong fundamentals in the Queensland market and the growth corridors there. We have very low rates of unsold stock, and the estate's development enables us to use Pro9 walls and improves our capital efficiency. It's a really good project. The Stella Collection is using our Pro9 walls as the basis for that. We get a minimum of eight-star energy efficiency, which is more than the NCC code of seven stars that's coming in around the country. With the Pro9 walling system, double-glazed windows, we've got the quality fixtures and fittings, solar panels, EV chargers, and all electrical appliances. So a very sustainability-friendly home, which can deliver up to 50% savings in heating and cooling costs. The quality is fantastic. It's quieter and far more durable product. 70% of buyers in a survey that we did of our customers are willing to pay more for the energy-efficient inclusions in a new home. So we're delivering on our modernization capability, leveraging technology, so we continue to do the financial system refresh and leveraging the technology to get better efficiency right across the business, whether it's on-site or whether it's within the business. Our capital management, we've talked about the equity raise and the growth of the club facility. We've talked about managing the other sites like Roxburgh, selling down Glenrowan, and in South Australia, the St Clair project, and we'll continue to look at opportunities for capital management. The club facility continues to be modernized as we go on with further discussions with our banks. Our people, they're high performing, and the more that we can get out of our people, the better that we can drive our ROE. Next slide. Pro9 is delivering some really good advantages for us. For us, our time savings to construct homes enhances our ability to recycle capital. We get significantly reduced on-site trade visits, so the safety risks are improved, and the total cost is comparable with traditional construction methods. So we get an eight-star rating, and which matches the price of a traditional seven-star construction home. We get increased certainty of program delivery, and just recently, well, as recently as last week, we put the walls of four homes up in four days in Riverton, in Queensland. It gives greater certainty of getting the other trades on site to program to get our delivery and program right on time. It enhances our sustainability position in the market, and it gives us less exposure to labor shortages and to wage growth. We're getting great interest from government and from the industry to use the Pro9 walls, and it presents a significant growth opportunity for us across the business. It has the major ability to redefine AVJennings' earnings profile and growth into the future. Shanna, I'm going to pass over to you to do the financial... Oh, sorry. There's some more about Pro9. As you can tell, we love it. So in the Central Coast factory is underway. The first walls are literally sitting at the factory now, getting ready to be delivered any day now to Riverton in Queensland. We just put four up there, and these are the next four to go in, so they'll be leaving the factory any day now. We've been using it across all of our sites in each state. Haven't hit South Australia yet, but we have in Victoria and New South Wales and Queensland, and we're just in the process of finishing six two-story terrace homes at Elderslie in southwestern Sydney. We've got twenty-four Stella Collection homes completed, and we've got over eighty on order for future development. I've talked about the faster build times and improved working capital. And now we've been able to hit the standard that essentially we can put the walls up, the external walls for a single-story home in one day, and we've hit that milestone several times now. So the interest is growing, and with the housing shortage in Australia and climate change goals, we think Pro9's gonna be a major winner. Now over to you, Shanna. Thanks, Phil, and thanks, everyone, for joining us today. As Phil mentioned, while revenue is up 12% on the prior period, more importantly, we are starting to see the impacts of the change in strategy coming through with increased diversification of revenue for the year. Off the back of apartment settlements at Waterline, as well as the impact of the apartment construction works that we are undertaking on behalf of the Victorian Government at our project in Brunswick, the revenue attributed to apartments is significantly up on the prior year. Equally, we are beginning to see the increase in skew towards housing and at the expense of land, a trend that we expect to continue into the next year, as there remains concerns for many purchasers around the financial viability of many builders in the industry. On a lot basis, and excluding the impact of a few large and global sales during the year, you can see the impact of those purchaser concerns regarding the purchase of standalone land lots, as well as the roll-off of COVID period stimulus for land sales in FY 2023, both of which are driving a significant decrease in land lots that will settle during the year. This is also the key contributing factor for the fall in settlement lots year-on-year. Work undertaken during the year has delivered a much stronger balance sheet that is providing us with increased financial flexibility. The changes in balance sheet inventory against the prior period primarily reflect the settlement of sixty-seven apartments at Waterline, reducing current inventories, while the shift to greater built form is seeing an increase in non-current inventories due to the longer lead time and delivery time for those assets. Liabilities have reduced as previously committed acquisition obligations have been paid for during the year. During this year, it primarily related to the FY 2023 acquisitions of Beaudesert in Queensland, Clyde in Victoria, and Macarthur in New South Wales. You can also see the impact of increased borrowings to fund this increased production and these land acquisition payments. You will also note references throughout the document, referencing the December 2023 restatement, as the impact of this restatement is reflected in the full FY 2023 results. Movement in the cash flow statement reflects the balance sheet changes that I just touched on and our increases in investment in the pipeline and built form. While cash receipts from customers are up on the prior year, this is offset by increased development expenditure for production and land acquisition payments. Our investment to date in the Pro9 joint venture that Phil has touched on can be seen in the investing activities line item, and cash flow from financing activities has benefited from the equity raise conducted during the year, which contributed AUD 30 million of cash inflow to the business, primarily to fund greater built form production. While we are seeing improving market conditions in some areas, we retain a disciplined and prudent approach to capital management overall. Despite having a facility availability of over AUD 100 million following the first half equity raise and the recent AUD 30 million increase to our facility, we remain prudent on the deployment of capital into production, with a capital allocation model that is flexible and responsive to corridor-specific market conditions and opportunities, and Phil touched earlier on some of the markets and how we're viewing them in the near term. There were no further acquisitions during the year, and our acquisition approach continues to be primarily opportunistic based on current buying conditions. While our gearing level has increased to 23.9%, it remains comfortably within our target range of 15%-35%, and our weighted average cost of debt has increased in line with further interest rate rises during the year, as well as a larger amount of average capital deployed throughout the year. As Phil touched on, we are progressing well with the further modernization of our very long-dated club facility with our lender group and look forward to providing an update on our achievements in that space in the future. Thank you, and I'll now hand back to Phil. Thanks, Shanna. Just looking forward across the business, the solid market fundamentals are there and leading indicators are slowly improving. Population growth is there, interest rates have steadied, and the indications are that it will come down, and no guarantee on that, but will come down in the not-too-distant future. Price growth is still there, and rental vacancy rates are still incredibly low. Material costs seem to be leveling out, although there are still increases there, and our inquiry levels haven't improved. The supply and demand issue across the country isn't fixed. There is still a housing shortage there and a deep one there, but unemployment remains low and hopefully will continue to do that. The graph on the left-hand side shows you the journey through the interest rate cycle and how sensitive markets are, the housing market is, not just to the interest rate rise, but also the sentiment around interest rates is really, really important. If customers think that the rates are gonna go up, then they will stay away from buying. Hopefully, that's starting to turn around now. We expect FY twenty-five revenue to be roughly in line with the current year, with continued pressure on gross margins until the macroeconomic environment improves a lot further. Earnings will be again expected to be skewed in the second half, with sizable increase in built form product. South Australia. Southeastern Queensland and South Australia expect to continue to be the strongest markets, particularly on the back of some of the infrastructure and growth in South Australia. In New South Wales, slower improvement, but seems to be turning at a longer recovery in Victoria. In New Zealand, sentiment's expected to improve as interest rate cuts have commenced. Hopefully, there'll be a few more. Our Pro9 factories commenced production, and whilst measured growth in production is forecast for 2025, we don't expect the factory to materially contribute to AVJennings in FY 2025, and are more hopeful of that hitting us in 2026. We expect to return to a normal dividend cycle in 2025, and the company looks forward to providing a quarter one trading update during October, and we remain committed to executing on our strategy. Thank you, Phil. Thank you, Shanna. A reminder for participants, if you have a question, please drop it into the Q&A function, and I'll facilitate it. First question through Shanna, or first question I'm gonna direct to Shanna. Lot of information or more information in the deck regarding Pro9. Progress is evident, potential seems to be enormous with growing industry interest. What are the... or how do you think about the financial and accounting, I guess, consequences of the joint venture going forward? Thanks, Andrew. As Phil has touched on a number of times, we're very excited about the Pro9 opportunity and see its potential to really transform not only AVJennings' profile, but really the broader industry, given the number of challenges that the industry is currently facing. From an impact on AVJennings, specifically, and our financials, we do expect during FY 2025 that it will transition from what it currently is, which is generally primarily a loan to the joint venture, to being an equity investment and really becoming a full 50/50 JV. As a result, that will come through our accounts in the equity line, the profit or loss, hopefully no loss. We're not expecting one during 2025. It will start to come through in FY 2025. We are expecting during FY 2025 that the joint venture will break even, and then the ramp up from there to full production was always forecast to be a three-year profile. So, you know, I expect minimal impact in 2025 to our bottom line, and then a ramp up from there across 2026 and 2027. It's obviously very much driven by sales, is really the key factor at this point, and the joint venture management team are very focused on driving sales. Phil touched on, there's a lot of interest across industry and government, numerous different bodies, so we're focused there. Cash coming back in would come through distributions from the joint venture, and that will be considered at later dates as we consider where the JV and the Pro9 opportunity is, and whether we're using that, the distributions or excess cash within the joint venture to reinvest, to grow, or if those distributions are coming back to the joint venture partners. We haven't gotten to making any firm decisions on that, and that will very much be dependent on where we get to with the joint venture. Thank you. So it has the potential to be self-funding if that sales trajectory comes through over the next year or two. Is that a fair comment? Yeah. Yeah. Okay. Thank you. Next question: Are there any, there were some large lot or englobo sales in FY twenty-four. Do you anticipate or plan for any in FY twenty-five? Yep, I can take that one also. So with regards to Englobo, this year there were quite a few large Englobo sales that we thought are important to differentiate from underlying retail sales, which is why you've seen those called out in the presentation. We always, as a matter of our typical course of business, will occasionally have neighborhood centers, for example, which is what the Lyndarum Englobo sale was. Those are not frequent, but they do occur through the life cycle of a project on occasion. There are a few of those in future years. The other one is at St Clair, as you can see in the pipeline of lots included in the investor presentation. There's a few remaining Englobo sites there. None of those are significant in their own right, and that's, we will continue to sell those, and hopefully we'll be out of St Clair fully, during FY twenty-five. Thank you. Change of topic. Can you recap on the, what the Roxburgh project was and how the, the AUD 17.8 million, which was expensed or, written off, how that was spent, and why was it that the option was terminated? The Roxburgh project, Caboolture, has been with us for about six years now. The option fees were a very large part of that, which was to the landowner up there. And then, the rest of the money was development expenses that we put into that project. When we did further analysis and we've talked about the increase in costs across the industry, our cost to develop that had more than doubled over that five- to six-year period, which meant we would have had to pull back on a whole bunch of other projects and to fund the Roxburgh project. We thought it best to keep developing the other sites, and make sure cash would keep coming through the business, and we could keep recycling capital, because the returns on the Roxburgh project wouldn't have come through till somewhere around 2028. So we thought in the interests of all shareholders, that we continue those other projects and we have to let Roxburgh lapse. Thank you, Phil. Question with regard to the Kogarah project. What is the status of that project? Yep, I can take that one. Kogarah is under construction currently. Construction commenced earlier this calendar year, and we expect to hit practical completion with settlements to come through in early FY 2026. That is progressing well. Thank you. And, is there any other land in the portfolio that is secured by options rather than outright ownership? And related, I guess, to Roxburgh and options, is there any further risk of asset write-downs? Yeah, excellent question. So there is other land that is optioned up in the portfolio, but nothing to the extent that Roxburgh was with regards to development expenditure or significant option payments that are being paid. The other ones more relate to us achieving planning milestones, to then be able to progress with the transaction rather than, the structure of the option payments with the Roxburgh one. So I think to the root of the question is: are there other things like Roxburgh in the portfolio? The answer is no. Thank you. And, I guess an observation leading to a question. The participant has observed that the cost of debt is 7.8%, or the weighted average cost of debt in our numbers, and returns at the moment are below that cost. So, you know, why would you persist in, you know, producing and selling existing product when you have that gap at the moment? How do you think about that, Shanna? Yeah. No, excellent question, and a fair question. So as we've touched on, for the last few results, we are very much in a transformation strategy with the business, and part of that is the capital structure. You know, we touched on recycling of capital and accelerating through that. So it's a question of, disposing of underperforming sites. That was why we disposed of the Glenrowan site during the year. We're looking at the wrapping up where we have projects with legacy sites. We've touched on St Clair, and the neighborhood site at Mindarie and Wollert. So we continue to look at that, in combination with, you know, what do we do? How do we bring it down, the cost of our debt? We're starting to look at hedging, obviously, with forward yield curves. So, we're at a very challenging point in this cycle, and are pulling a number of different levers across the portfolio to address that current gap between what our cost of debt is and what the return on the assets are. So we are aware of it, and a number of steps are being taken towards closing that gap. And ultimately, the trajectory is to get to where, obviously, the return is ahead of what our cost of debt is. Thank you. Very thorough. And back to Pro9 and funding, do you expect to have to put more cash, either debt or equity, into the joint venture in FY 25? Yeah. So, the answer is no. As I touched on, in my, I think, the opening comment, we expect the JV to get to a break-even point during FY twenty-five, after which point it becomes self-funding. As I touched on, there's a lot of interest about us potentially expanding manufacturing facilities. That would potentially, depending on where we get to with velocity of sales, you know, at that point, we may be making decisions about debt or equity from an expansion perspective. But if we get to that position from AVJennings' perspective, that's a really positive position. But we have no more obligations other than, what remains in the balance to pay on the actual joint venture agreement that we initially entered into. And there's a few more million that we've been committed to from the very beginning that will come through in early FY twenty-five, and that's the balance of our initial commitment to get the manufacturing facility in New South Wales established. It'll be very much market driven and demand driven, if there is any further expectation of expenditure. Thank you, and question on the Macarthur project. Given the current outlook for apartment-style projects, and, really, the dearth of new ones coming to market, how do you think about that project, and how do you think about the capital required to fund such a project? Yeah, it's something we think about a lot. We currently have tenants in, then solid tenants in the Macarthur site at the moment, so it gives us optionality around what we wanna do that, with that in the future. We've had approaches and we've had discussions, around things like build-to-rent opportunities, there. And the way the market is at the moment with different housing options, that gives us further options. So it, it's something we haven't come to a landing on yet, but, we're consistently thinking, about that Macarthur project, as we do with all other projects, into the future. And certainly, the, the production costs at the moment in, in apartments, in particular, is a concern for the whole industry. Thank you. A question relating to the discount to NTA, which not the first time this topic has been raised. You know, the... How do you currently think about that discount relative to the, the, you know, product production, growth opportunities in the portfolio at the moment? In fact, do you want me to take that? Yeah. I'll take that one. Yeah, it is a significant discount to NTA, and we are consistently frustrated by that as well. And in fact, most companies, all properties in our realm in the market have a significant discount to NTA. I think there's a lot of value in the business moving forward. I think the strategy around built form is something that's starting to really show some returns. And I think with Pro9, the accessibility of Pro9, benefits that Pro9's gonna bring to us, we're very hopeful that this strategy will be successful to close that NTA gap. Do you want to make any comment on that? No. Thank you, Phil and Shanna. That's exhausted the questions that have come in. Thank all participants for viewing today and putting some questions to Phil and Shanna. Phil, would you like to provide a closing remark? Yeah, I think it's been a really difficult year for the whole industry, and certainly we're not separated from that. I think the market, for the most part, has hit rock bottom. And I think really government planning improvements have really the greatest ability to help us improve supply and to assist the housing shortage and to improve shareholder returns. And we're hopeful that the rhetoric from government turns into action, and we can get on with things. Twenty twenty-five, I think, shows some promise for us, and we're looking forward to a much better year ahead. Thank you. Thank you, all. We'll finish the webinar there. Thank you.