ANNUAL REPORT
2021
Peet is one of Australia’s
leading residential real
estate developers, creating
places to live for thousands of
Australians each year.
CONTENTS
About Peet
What we do
How we do it
FY21 Performance at a Glance
Business Model
Our Strategy
National Reach
Chairman’s Review
Managing Director and CEO’s Review
Operational and Financial Review
Fund Management Projects
Joint Ventures
Development Projects
Living Sustainably. Environment Social and Innovation
Corporate Calendar FY22
Financials
2
3
4
6
8
9
10
12
14
18
20
22
24
28
30
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PEET LIMITED | ANNUAL REPORT 2021
ANNUAL REPORT 2021 | PEET LIMITED
1
About
PEET
Peet is one of Australia’s leading residential real estate
developers, creating places to live for thousands
of Australians every year. Listed on the Australian
Securities Exchange (ASX) since 2004, Peet develops
masterplanned communities, medium density housing
and low-rise apartments in the major growth corridors
in every mainland state in Australia.
Established in 1895 by founder James Thomas Peet with
a vision for Australians to build or buy their own home,
Peet has enabled thousands of Australians achieve
their ownership dreams.
With strong roots in Western Australia and a presence
that now reaches across the country, Peet has played
a key role in shaping and enhancing the urbanisation of
cities by creating desirable communities with a strong
commitment to affordability.
WHAT WE DO
Peet acquires, develops and markets residential land
in Australia. Currently, Peet manages a broad property
portfolio of almost 45,000 lots with a gross development
value of approximately $13.6 billion across 52 projects,
making Peet Australia’s largest ‘pure play’ residential
property developer.
For over 125 years, Peet has continuously evolved its
business with a focus on providing choice for Australians.
Historically, the company has been a residential land
developer, replenishing its land bank in a disciplined
manner, including using its unique and capital-lite funds
management platform. Bolstered by its deep knowledge
of the industry, Peet broadened its geographic scope
resulting in a portfolio with national reach and a product
mix of land, medium density townhouses and low-rise
apartments, in response to the changing lifestyles sought
by Australians. Peet’s range of product type appeals across
buyer segments whilst maintaining a core focus on first
homebuyers.
Peet prides itself on not only creating housing allotments,
but communities. Investing in infrastructure is key – from
amenities such as parks, shopping centres and schools to
installation works of public art, Peet develops communities
that offer residents a safe, secure and convenient lifestyle
and great places to live.
Peet harnesses its deep experience and knowledge
of Australia’s real estate markets to create long-term
shareholder value by effectively managing the development
and sale of land, townhouses and apartments across the
country’s cycles.
The Peet team comprises committed and engaged
individuals who work with specialist consultants to deliver
projects ranging from boutique townhouses to substantial
urban renewal and master-planned communities.
Peet’s brand ethos is Life Your Way. This means we have
a commitment to creating places that enable Australians
to buy a new home in a new community that suits their
lifestyle and needs. Our financial results section provides
an overview of our performance during the 2021 financial
year (FY21).
2
3
Image: Glyde St, WAANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 HOW WE DO IT
Our values
Integrity
WE act with high integrity
through open, honest and
professional conduct.
Teamwork
WE recognise the strength
of working together, encourage
the development of people and
the sharing of knowledge.
Accountability
WE respect the responsibility
invested in us and have ownership
and the freedom to act to deliver
constant improvements.
Adaptability
WE embrace change and foster
creativity, initiative, innovation
and embrace progressive thinking.
Respect
WE treat our team, customers
and the environment with respect,
dignity and equality.
Customer service
WE strive to deliver a high standard
of prompt, efficient and courteous
service to our customers, both
internal and external.
4
5
Image: Googong, NSWANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 FY21 PERFORMANCE
at a glance
Financial
Operating and
Statutory Profit 1
After Tax
89%
$28.5
million
EBITDA2
(Before restructuring and
divestment related provisions
in FY20)
57%
$58.1
million
Operational
3,142
35%
LOTS SOLD 5
INCREASE ON
FY20
2,980
LOTS SETTLED5
66%
>87%
of land bank
expected to be in
development by
FY24
TOWNHOUSE SITES
2
+
1
LOW-RISE APARTMENT
SITE ACQUIRED
FIVE NEW PROJECTS
COMMENCED SALES/
DEVELOPMENT
APPROX
1,000
PIPELINE OF
TOWNHOUSES/LOW
RISE APARTMENTS
CONTRACTS ON HAND5
1,948
9%
INCREASE
ON 30 JUNE 2020
OPERATING EARNINGS
OF 5.9 CENTS
PER SHARE
90%
DIVIDEND OF
3.5 CENTS
PER SHARE
FULLY FRANKED
BOOK NTA3 PER
SHARE $1.13
GEARING4 OF 24.8%
Future proofing
1
2
3
4
Operating profit is a non-IFRS measure that is determined to present the ongoing activities of the Group in a way that reflects its operating performance. Operating profit excludes unrealised
fair value gains/(losses) arising from the effect of revaluing assets and liabilities and adjustments for realised/(unrealised) transactions outside the core ongoing business activities. In FY20,
a restructuring and divestment-related provision of $45.2 million after tax was excluded in calculating the operating profit.
EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
NTA before application of AASB16 Leases.
Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash) / (Total assets less cash, less intangible assets).
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Land bank of
44,957 lots5
5
Includes equivalent lots.
Land Bank
of $13.6
billion gross
development
value
52 projects
nationally
Range of
affordable
product
appealing to all
buyer segments
6
7
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
BUSINESS
Model
A unique funding model is one of Peet’s key differentiators. It funds
development through a combination of Company-owned Development
projects, Funds Management projects and Joint Ventures, resulting in a
capital efficient business model. Peet pioneered retail land syndication in
Australia and its Funds Management and Joint Ventures businesses manage
more than 33,0006 lots across 25 projects, providing opportunities for investors
ranging from mums and dads to institutional and wholesale investors to
participate in land development projects.
Peet’s Funds Management and Joint Ventures contributed approximately 69%
of the Group’s EBITDA7,8 in FY21.
D
N
LA
DEVEL O
T
N
E
M
P
OWNED
11,540 lots
$2.9bn GDV
A
P
A
R
T
M
E
N
T
S
WHOLESALE
INSTITUTIONAL
21,715 lots
$6.4bn GDV
JOINT
VENTURES
5,871 lots
$2.9bn GDV
T
N
E
M
N A GE
RETAIL
5,831 lots
$1.4bn GDV
A
S M
F U N D
MEDIUM DEN S I T Y
6
7
8
Includes equivalent lots.
EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
Before inter-segment transfers and other unallocated items.
Our
STRATEGY
Peet’s strategy is to target the delivery of residential communities around Australia
by leveraging its land bank, working in partnership with wholesale, institutional
and retail investors, and continuing to meet market demand for a mix of products in
growth corridors of major Australian cities. We also take a strategic approach to land
acquisition, and our geographically diversified portfolio means we are well positioned
to leverage different property cycles.
INVEST
Invest in high quality land in strategic
locations across the country
PEET’S
STRATEGY
FOCUSES ON
FOUR KEY
PILLARS
ENHANCE
EXPAND
MAINTAIN
Enhance, plan and create communities
and homes targeting the low to middle
market segment
Expand product offering and
geographic presence to appeal
to a wider variety of customers
Maintain strong capital management
8
9
Image: Little Eagle Nudgee, QLDANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
NATIONAL Reach
WA
PROJECTS: 21
VIC
PROJECTS: 10
ACT
PROJECTS: 1
SA
PROJECTS: 6
QLD
PROJECTS: 12
NSW
PROJECTS: 2
44,957 LOTS9
$13.6bn GROSS DEVELOPMENT VALUE
52 PROJECTS NATIONALLY
9
Includes equivalent lots.
10
Peet manages a broad
property portfolio,
encompassing almost
45,000 lots across
52 projects
Diversified land bank
strategically located in
growth corridors of major
cities in every mainland
state of Australia
Range of affordable
product type appealing
to all buyer segments
with a core focus
on first home buyers
11
Image: Riverbank, QLD ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
Chairman’s
REVIEW
Dear Shareholders,
STRATEGY
DIVIDENDS
I am pleased to present Peet’s Annual Report for the year
ended 30 June 2021.
Peet has a long and proud history of creating thriving
communities for Australians for over 125 years. Despite
continued challenges presented by the COVID-19 pandemic,
the Group has remained committed to executing our strategy,
positioning the business for future growth and creating value
for our shareholders.
Peet manages a broad property portfolio, and with a
diversified product offering and geographic footprint, the
Group is well positioned to leverage our land bank and
benefit from improving market conditions and strong demand
for affordable housing.
Our financial results for FY21 include an operating10 and
statutory profit11 after tax of $28.5 million. The profit for FY21
is at the upper end of the earnings guidance announced to
the market in July 2021 of an earnings range of $27.5 million
to $29.0 million. The improved profit compared to FY20 is
due to both higher sales and settlements volumes across the
Group’s three business segments and most states that we
operate in. This has been supported by continuing favourable
market conditions, government stimulus and improving
consumer confidence.
During FY21, Peet extended its on-market share buy-back of
up to 5% of its issued ordinary shares for a further 12 months
to 30 August 2022. We also refinanced $100 million of
five-year fixed rate bonds via the issue of $75 million,
five and a quarter year floating unlisted notes and a
$25 million increase in our senior bank debt facilities,
resulting in an increase in the weighted average debt
maturity and a reduction in the weighted average cost
of borrowing.
We are focused on positioning the Group for future
growth through a prudent approach to project delivery and
identifying strategic opportunities to leverage existing assets
supplemented by selective acquisitions.
Key elements of the Group’s strategy for the year ahead and
beyond include:
•
continuing to leverage its large-scale national portfolio to
further improve returns by:
º
º
º
accelerating production to meet current demand and
increasing operating cash flows;
continuing to focus on improving project returns and
operating margins through efficient master planning,
affordable product development, cost reduction
initiatives and efficient allocation of capital; and
continuing to balance the portfolio between land and
built form projects, increasing the weighting to east
coast markets and remaining focused on the right
product in the right markets;
• continuing to assess capital recycling opportunities by:
º
º
º
assessing further divestment opportunities to
maximise market cycles to unlock value where
appropriate;
continuing to develop Funds Management/Joint
Venture initiatives with existing and new capital
partners; and
evaluating “super lot” opportunities within the
portfolio; and
•
considering selective acquisitions to restock the pipeline
when appropriate.
Subsequent to year end, the Directors declared a final
dividend for FY21 of 2.5 cent per share, fully franked.
This brings the total dividend for FY21 to 3.5 cents
per share and compares to the FY20 dividend of
1.5 cents per share, fully franked.
Once again, I would like to thank my fellow Board members
for their contributions during the year. I would also like to
thank our Managing Director and CEO Brendan Gore and the
entire Peet team for their continued commitment and energy
throughout another year of disruption and uncertainty.
The final FY21 dividend is to be paid on Monday, 11 October
2021, with a record date of Friday, 17 September 2021.
The Directors have resolved to keep the Company’s Dividend
Reinvestment Plan deactivated.
On behalf of Peet, I would also like to extend our
appreciation to our shareholders and other stakeholders
for their support and we look forward to sharing our
progress with you in FY22.
Tony Lennon
Chairman
CONCLUSION
The Group continues to monitor, assess and manage the
ongoing impacts of COVID-19 including government-imposed
lockdowns and restrictions. Protecting and supporting our
staff and customers remains our highest priority, as we
mitigate risks to our operations by remaining agile and
focused on project delivery.
With continuing residential sales momentum, a significant
development pipeline and a strengthening balance sheet,
the Group is positioned well for future growth.
During FY22, the team will be focused on the delivery of a
significant number of land lots and townhouses, along with
the commencement of up to six new projects.
“ With continuing residential sales momentum, a significant
development pipeline and a strengthening balance sheet,
the Group is positioned well for future growth.”
10 Operating profit is a non-IFRS measure that is determined to present the ongoing activities of the Group in a way that reflects its operating performance. Operating profit excludes unrealised fair
value gains / (losses) arising from the effect of revaluing assets and liabilities and adjustments for realised / unrealised transactions outside the core ongoing business activities.
11 Statutory profit / (loss) after tax means net profit / (loss) measured in accordance with Australian Accounting Standards, attributable to the owners of Peet Limited.
12
13
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
Managing Director and CEO’s
REVIEW
Dear Shareholders,
FY21 PERFORMANCE
The Group’s strategy has positioned us well to capitalise on
a strengthening residential market buoyed by low interest
rates, improving employment outlook and supportive lending
conditions. Our diversified and balanced portfolio allows us
to maximise increased demand and opportunities for price
growth; and our balance sheet continues to strengthen
supporting the targeting of future growth.
The continued impact of COVID-19 border closures and
lockdowns has presented operational challenges, however
the market has remained resilient, and we’ve seen positive
sales momentum leading into FY22.
Enquiry levels remained strong throughout FY21 despite the
roll-off of the HomeBuilder stimulus. Enquiry at our projects
across Queensland, Western Australia and Australian Capital
Territory/New South Wales have continued to grow in the
first quarter of FY22, with enquiry in Victoria remaining solid
despite extended COVID-19 lockdown restrictions.
Strong customer demand for quality, affordable product
continues, with key indicators signifying positive momentum
moving into FY22.
COVID-19 RESPONSES
Our first priority is the safety and wellbeing of our team,
with particular focus on our Victorian employees, who have
demonstrated enormous character and resilience through
extended lockdowns.
While business practices normalised across the majority of
the country in the first half of FY21, Melbourne continued to
be subject to significant disruption resulting from
COVID-19-related lock downs. However sales and
settlements from our Victorian portfolio remained solid and
market conditions resilient.
The Peet Group achieved an operating12 and statutory profit13
after tax of $28.5 million for FY21, representing increases of
89% and 195%, respectively on FY20.
Higher sales and settlement volumes contributed to improved
profit compared to FY20, driven by strong conversion of sales
from the HomeBuilder stimulus and strengthening market
conditions.
The Group achieved 3,142 sales14 with a gross value of
$858.8 million, representing an increase of 35% on the
number of sales in FY20. Sales in 2H21 continued the positive
momentum experienced during 1H21 and have continued to
improve during the first quarter of FY22.
The Group achieved 2,980 settlements14 for the full year
across its Funds Management, Development and Joint
Venture projects, representing an increase of 66% compared
with FY20.
The Group derived EBITDA15 of $58.1 million during FY21,
compared to $37.0 million (before restructuring and
divestment-related provisions) in FY20, with an EBITDA15
margin of 25%, compared to the margin achieved in FY20
of 19%. This improved margin is attributable to revenue
increases from higher sales and settlements accompanied by
price growth across the portfolio and a continued focus on
cost management.
At 30 June 2021, there were 1,948 contracts on hand14,
with a gross value of $546.6 million, compared with
1,786 contracts on hand14 with a gross value of
$427.7 million at 30 June 2020. This represents an
increase of 9% in contracts on hand and a 28% increase in
contract value, providing a positive momentum into FY22.
DELIVERY AGAINST STRATEGY
The Group’s portfolio is well positioned for positive growth,
value creation and to capitalise on an improving market to
continue to deliver against our strategic pillars.
Invest in high quality land in strategic locations across
the country.
Maintain strong capital management.
The Group continues to apply a prudent focus on capital
management and its gearing16 as at 30 June 2021 was
24.8% (30 June 2020: 28.8%) and within its target range
of 20% to 30%.
We continued to build our geographically diverse portfolio,
with two townhouse sites and one low-rise apartment site
acquired during FY21.
At 30 June 2021, the Group had net interest-bearing debt
(including Peet Bonds) of $203.9 million, compared with
$235.3 million at 30 June 2020.
Enhance, plan and create communities and homes
targeting the lower to middle market segment.
Five new projects commenced development/sales during
FY21, with a further six projects to be launched in FY22.
Peet enters FY22 with cash and debt facility headroom of
$175.1 million as at 30 June 2021 and a weighted average
debt maturity of over three years. It has the capacity to
accelerate delivery of product to meet the material increase
in demand following the introduction of Government stimulus.
Gearing16 during FY22 is expected to be at the upper end of
the 20% to 30% target range due to the significant level of
construction activity anticipated to be undertaken.
We remain focused on driving operating leverage with circa
70% of the land bank in development.
Expand our product offering and geographic presence
to appeal a wider variety of customers.
We extended our market reach by continuing to broaden our
offerings to townhouses and low-rise apartments.
We have a pipeline of approximately 1,000 townhouses and
apartments.
“ Our first priority is the safety and wellbeing of our team,
with particular focus on our Victorian employees, who have
demonstrated enormous character and resilience through
extended lockdowns.”
12 Operating profit is a non-IFRS measure that is determined to present the ongoing activities of the Group in a way that reflects its operating performance. Operating profit excludes unrealised fair
value gains / (losses) arising from the effect of revaluing assets and liabilities and adjustments for realised / unrealised transactions outside the core ongoing business activities.
13 Statutory profit / (loss) after tax means net profit / (loss) measured in accordance with Australian Accounting Standards, attributable to the owners of Peet Limited.
14
15 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
Includes equivalent lots.
16 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash) / (Total assets less cash, less intangible assets).
14
15
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
OUTLOOK
Residential markets are expected to remain positive over the
medium term supported by low interest rates, accommodative
credit conditions and an improving employment outlook.
Particular focus in the short-term will be on risks associated
with COVID-19, including:
•
prolonged government lock downs negatively impacting
the general economy, consumer confidence, supply chains
and halting the current positive market momentum;
•
rising development and labour costs due to border
restrictions/closures; and
•
the potential for development programs to be extended.
Subject to the above risks, FY22 is expected to be a year
focused on the delivery of a significant number of land
lots and townhouses sold during FY21 along with the
commencement of up to six new projects.
The Group is well-positioned to target growth on FY21
earnings, subject to market conditions and the timing of
settlements.
I would like to thank Chairman Tony Lennon and our board
for their support and contribution. Thank you also to the
management team and staff for their continued commitment
and dedication which has contributed to the FY21 results.
As always, thank you to our loyal shareholders and other
stakeholders who continue to support Peet. I look forward to
updating you on our progress during the year.
Brendan Gore
Managing Director and Chief Executive Officer
“Sales in 2H21 continued the positive momentum
experienced during 1H21 and have continued to
improve during the first quarter of FY22.”
16
17
Image: Newhaven Tarneit, VICANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 OPERATIONAL AND FINANCIAL REVIEW
FUNDS
MANAGEMENT
projects
The Peet group manages a number of projects on behalf of land syndicates using funds raised from
a combination of wholesale, institutional and retail investors. It also manages projects under project
management and co-investment arrangements. This provides Peet a capital efficient profit source
which is difficult to replicate while also providing long term earnings visibility.
19
31% OF
EBITDA
42% OF
EBITDA
17, 18
27,546 lots20
GDV 21
$7.8 billion
2
2
S
T
O
L
D
L
O
S
2
2
S
T
O
L
D
E
L
T
T
E
S
S
T
C
A
R
T
N
O
C
2
2
D
N
A
H
N
O
27% OF
EBITDA
FY21
1,613
Gross value of
$406.0 million
FY20
1,412
Gross value of
$310.0 million
FY21
1,732
Gross value of
$394.4 million
FY20
924
Gross value of
$217.9 million
FY21
1,054
Gross value of
$252.8 million
FY20
1,173
Gross value of
$241.2 million
3
2
A
D
T
I
B
E
FY21
$29.2
million
FY20
$13.0
million
3
2
A
D
T
I
B
E
I
N
G
R
A
M
FY21
69%
FY20
53%
17 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
18 Before inter-segment transfers and other unallocated items.
19 By number of lots.
20
21 Gross Development Value.
Includes equivalent lots.
22
23
Includes equivalent lots.
EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates.
18
19
Comprised 61% OF GROUP’S LAND BANKImage: Flagstone, QLDANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
OPERATIONAL AND FINANCIAL REVIEW
JOINT
ventures
The Peet Group has a number of high-profile joint venture projects, which are generally
entered into with Governments, statutory authorities, private land owners
or partner developers.
26
31% OF
EBITDA
42% OF
EBITDA
27% OF
EBITDA
24, 25
9
2
S
T
O
L
D
L
O
S
9
2
S
T
O
L
D
E
L
T
T
E
S
S
T
C
A
R
T
N
O
C
9
2
D
N
A
H
N
O
FY21
998
FY20
479
Gross value of
$286.6 million
Gross value of
$100.5 million
FY21
764
FY20
436
Gross value of
$216.3 million
Gross value of
$103.0 million
FY21
638
FY20
404
Gross value of
$198.4 million
Gross value of
$128.1 million
5,871 lots27
GDV 28
$2.9 billion
0
3
A
D
T
I
B
E
FY21
$18.3
million
FY20
$8.8
million
0
3
A
D
T
I
B
E
I
N
G
R
A
M
FY21
35%
FY20
22%
24 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
25 Before inter-segment transfers and other unallocated items.
26 By number of lots.
27
28 Gross Development Value.
Includes equivalent lots.
29
30
Includes equivalent lots.
EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in joint ventures. Also before divestment and related provisions in FY20.
20
21
Comprised 13% OF GROUP’S LAND BANKImage: Folio 195 Apartments, WAANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
OPERATIONAL AND FINANCIAL REVIEW
DEVELOPMENT
projects
Peet’s Development projects are 100% owned by Peet and held on
its balance sheet. 100% of returns are collected upon development,
sale and settlement of these projects, generating solid margins.
6
3
S
T
O
L
D
L
O
S
6
3
S
T
O
L
D
E
L
T
T
E
S
33
31% OF
EBITDA
31, 32
11,540 lots34
GDV 35
$2.9 billion
FY21
531
FY20
432
Gross value of
$166.2 million
Gross value of
$118.2 million
FY21
484
FY20
434
Gross value of
$129.2 million
Gross value of
$115.8 million
FY21
256
FY20
209
Gross value of
$95.4 million
Gross value of
$58.4 million
27% OF
EBITDA
S
T
C
A
42% OF
R
T
EBITDA
N
O
C
6
3
D
N
A
H
N
O
7
3
A
D
T
I
B
E
FY21
$21.8
million
FY20
$23.5
million
7
3
A
D
T
I
B
E
I
N
G
R
A
M
FY21
16%
FY20
18%
31 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
32 Before inter-segment transfers and other unallocated items.
33 By number of lots.
34
35 Gross Development Value.
Includes equivalent lots.
Includes equivalent lots.
36
37 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in joint ventures. Also before divestment and related provisions in FY20.
22
23
Comprised 26% OF GROUP’S LAND BANKImage: Tonsley Village, SAANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
LIVING
Sustainably
ENVIRONMENT, SOCIAL & INNOVATION
Peet creates communities that become a permanent part of Australia’s urban fabric for decades to come.
With this in mind, Peet focuses on planning, designing and developing communities that leverage innovation to minimise
the impact on the environment, while creating opportunities for communities and residents to thrive.
JOURNEY TOWARDS RECONCILIATION
We are pleased to have commenced the process
to develop our Reflect Reconciliation Action Plan,
which aims to make a positive contribution towards
reconciliation in our community.
Peet has a history of successfully working with the
Traditional Owners of the land in which we create our
communities. We are committed to understanding,
listening and learning to further enhance those
relationships and identify opportunities to support and
celebrate First Nations peoples and culture.
SMART
LIGHTING AT
GOOGONG
The township of Googong in NSW is set to
become a showcase for technology-based urban
living with a comprehensive Smart City
infrastructure program that reduces everyday
community service costs, including waste
management, utility consumption and the
maintenance of amenities. Googong is one
of the first towns in Australia to have smart
technology built in at scale and from the ground
up; and in 2021 released the Googong Smart
Cities Blueprint to support other planners,
developers and councils.
The latest addition to the roll-out of the town’s
Smart Cities infrastructure is 5G ready ‘smart’
LED light poles. The poles are installed off-
grid and are powered by free renewable solar
energy - meaning no carbon emissions and no
energy costs. Trench-free installation is also cost
effective and allows for flexible positioning, while
remote operation monitoring, reportable data
collection and fault detection provides enhanced
facilities management. The lights are currently
programmed to run at 100% capacity from
dusk to 11pm, and then dim down to 30% from
11pm to dawn. Motion detectors allow individual
lights to power up to 100% for a few minutes
as pedestrians pass through the area.While the
‘smart’ poles are already delivering increased
safety, efficiency, productivity and services,
they also have the capability to be fitted with
additional network infrastructure for free public
Wi-Fi, digital wayfinding and surveillance
cameras.
Googong was recognised at the 2021 MAV
Technology Awards for Excellence with a Highly
Commended in the category of Strategy and
Planning Achievement of the Year for its Smart
Cities Blueprint.
Googong is a joint venture with Mirvac.
FLAGSTONE
SPORTS FIELD
SUPPORTING
THE NEXT
GENERATION
The next generation of Queensland rugby league
stars will be honing their skills and talent with
the launch of the Flagstone Tigers and new team
clubhouse at Flagstone Sports Field. The new
clubhouse features showers, toilets, a kiosk and
meeting rooms.
The Flagstone Tigers have begun with Under 6s
to Under 9s in 2021. Next year, they will expand
to older age groups, and the Brisbane Easts
Tigers Rugby League Club are also working
closely with the local schools to implement
junior development programs.
A Queensland Government grant, together with
Peet Flagstone City Pty Limited’s in-kind site
works made the delivery of the clubhouse
a reality for the community.
The establishment of the Flagstone Tigers club
contributes to building the community spirit and
these new facilities are an important piece of
foundation infrastructure for the club.
Peet has a proud history of building sustainable
communities through significant infrastructure
such as this and through our community grants
program which supports community clubs
and initiatives at a grass roots level.
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ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 COMPLETION
OF
6.2-HECTARE
LIGHTSVIEW
WETLANDS
Lightsview’s substantial master-planned park,
featuring a full system of wetlands, central lake
and connecting walking trails in addition to a
drawcard adventure playground, is now complete.
The wetlands and the central lake all contribute
to creating sustainable water bodies in the
urban area for the benefit of the community. A
constructed wetland system supports a healthy
ecosystem that is able to filter and process the
contaminants carried in stormwater to cleanse
the water before being released. The wetlands
filter and process pollutants, they support a wide
range of plants and animals adding to the urban
biodiversity of the area.
Eucalypts, native water plants and South
Australian flora provide beautiful greenery
throughout, with over 150 trees and 20,000
plants and aquatics planted. Mellow sandstone
sourced from the Adelaide hills, has been used for
attractive statement borders and edging.
All is designed specifically to support recreation
activities in and around the wetlands with walking
paths, boardwalks, stepping stones, a playground
and active play spaces for residents to enjoy.
Lightsview is an award-winning project in joint
venture with Renewal SA.
AUSTRALIA’S FIRST
9-STAR NatHERS
ACCREDITED DISPLAY
HOME AT BRABHAM
In an Australian first at Brabham Estate, Peet is
building a 9.2 star rated green home, accredited
by the Nationwide House Energy Rating
Scheme (NatHERS) which measures a home’s
energy efficiency. As a demonstration of Peet’s
commitment to innovate, the home located within
the first Brabham Display Village, will showcase
the advantages of ‘green’ homes through good
design, quality building and integration of multiple
technologies.
The home, built by Green Homes Australia, will
provide an opportunity to educate purchasers
on the positive impact and long-term benefits of
sustainable design, supported by an integrated
and interpretative signage strategy throughout the
display and landscape garden to draw attention to
the sustainable initiatives and design.
The key sustainable features of the home include
lightweight timber frame, solar orientation and
ventilation features, smart home features such
as electric vehicle charging and integrated home
energy management systems as well as an
integrated sustainable landscape design including
a 14m2 roof garden, smart irrigation systems and
the planting of drought tolerant species.
A 12-month monitoring and evaluation program
will be implemented to test and benchmark
equivalent dwelling construction. The home is
due to open in the Display Village in the New Year.
Brabham Estate is located in Perth’s north
east and developed in partnership with
Development WA.
Peet has a proud history
of supporting the
community through
partnerships and grants
that bring residents
together, encourage
healthy and active
lifestyles and create
sustainable communities
that thrive for years
to come.
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ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Corporate
CALENDAR FY22
5 JULY 2021
Interest payment date for Peet Bond holders (PPCHB)
26 AUGUST 2021
Release of results for the year ended 30 June 2021
17 SEPTEMBER 2021
Record date for FY21 final dividend of $0.025 per share
30 SEPTEMBER 2021
Interest payment date for unlisted notes issued in 2021
5 OCTOBER 2021
Interest payment date for Peet Bond holders (PPCHB)
11 OCTOBER 2021
Payment date for FY21 final dividend of $0.025 per share
14 OCTOBER 2021
Annual Report and Notice of 2021 AGM dispatched to shareholders
16 NOVEMBER 2021
2021 Annual General Meeting
7 DECEMBER 2021
Interest payment date for unlisted notes issued in 2019
31 DECEMBER 2021
Interest payment date for unlisted notes issued in 2021
5 JANUARY 2022
Interest payment date for Peet Bond holders (PPCHB)
FEBRUARY 2022
Release of results for the half-year ending 31 December 2021
31 MARCH 2022
Interest payment date for unlisted notes issued in 2021
5 APRIL 2022
Interest payment date for Peet Bond holders (PPCHB)
7 JUNE 2022
Interest payment date for unlisted notes issued in 2019
30 JUNE 2022
Interest payment date for unlisted notes issued in 2021
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Image: The Avenue, WAANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Financials
2021
Contents
Directors’ Report ............................................................................................................................................................... 31
Auditor’s Independence Declaration ................................................................................................................................. 59
Corporate Governance Statement .................................................................................................................................... 60
Financial Report ................................................................................................................................................................ 61
Directors’ Declaration ...................................................................................................................................................... 102
Independent Auditor’s Report to the Members of Peet Limited .................................................................................... 103
Securityholder Information ..............................................................................................................................................110
Corporate Directory ..........................................................................................................................................................113
Directors’ Report
Year ended 30 June 2021
Your Directors present their report on the Consolidated Entity consisting of Peet Limited (‘the Parent Entity’ or ‘the
Company’) and the entities it controlled at the end of, or during, the financial year ended 30 June 2021 (‘the Group’).
1. DIRECTORS
The following persons were Directors of the Company during part or the whole of the financial year and up to the date
of this report:
TONY LENNON
FAICD
NON-EXECUTIVE CHAIRMAN
Tony Lennon has extensive general commercial experience and particularly in the property industry.
Mr Lennon is a Fellow of the Australian Institute of Company Directors and an Associate of the Australian Property
Institute.
His industry service has included State Government appointed roles as Chairman of both the Perth Inner City Living
Taskforce and the Residential Densities Review Taskforce. He was also a Member of the Commercial Tribunal
(Commercial Tenancies).
Mr Lennon is a former President of Western Australia’s Shire of Peppermint Grove and Deputy Chairman of the National
Board of the Australia Day Council. He is also a former Chairman of the Curtin Aged Persons Foundation and a founding
Director of the Wearne and the Riversea Hostels for the Aged, both of which are locally initiated and managed
community facilities. He is a World Fellow Member of The Duke of Edinburgh’s International Award.
BRENDAN GORE
BComm, FCPA, FCIS, FGIA, FAICD
MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
Brendan Gore has been Managing Director and Chief Executive Officer (“CEO”) of Peet Limited since 2007 –
successfully leading the company’s strategy through its land bank expansion, diversification of its product offering and
developing key new partnerships with Government and major institutions.
Mr Gore’s appointment to the position of Managing Director and CEO followed experience in two other key executive
roles within the Company. He began with Peet as Chief Financial Officer and played a key role in expanding the
Company’s scope of activities and growing its core residential development and land syndication businesses.
Mr Gore’s period in senior executive roles at Peet Limited was preceded by more than two decades’ experience in a
range of senior corporate, commercial and operational positions where he gained extensive experience in large scale
operations, strategy development and implementation, as well as expertise in debt and equity markets.
He developed a reputation as a strong leader, with operational responsibilities across local and State Government
relations, environmental and sustainability management and occupational health and safety.
Mr Gore is a qualified accountant and a Fellow of CPA Australia. He is also a Fellow of the Australian Institute of
Company Directors and a Fellow of the Governance Institute of Australia.
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ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Report
Year ended 30 June 2021
1. DIRECTORS continued
ANTHONY LENNON
BA, Grad Dip Bus Admin, MAICD
NON-EXECUTIVE DIRECTOR
VICKI KRAUSE
BJuris LLB W.Aust, GAICD
INDEPENDENT NON-EXECUTIVE DIRECTOR
Vicki Krause was appointed to the Board of Peet Limited in April 2014.
Anthony Lennon joined Peet in 1991 and became a Director in 1996.
An experienced commercial lawyer, Ms Krause had a 25 year career as a senior corporate executive with the
He moved to Victoria to establish Peet’s operations in Australia’s eastern states and oversaw significant expansion.
Before joining the Company, Mr Lennon worked in the United Kingdom, where he completed his post-graduate
qualification whilst working for major international construction and development company, John Laing PLC. His time
Wesfarmers Group, including seven years as its Chief Legal Counsel.
She supported successful outcomes in numerous significant acquisitions (including listed companies, trade sales and a
privatisation) and divestments.
with this global company saw him gain valuable experience in property planning, marketing, feasibility analysis and
As Chief Legal Counsel and a member of the Wesfarmers Executive Committee, Ms Krause led a large legal team and
project management.
Mr Lennon’s responsibilities during his career with Peet included project management, broadacre acquisitions,
marketing and financing and a six-year term as Chairman of one of WA’s largest conveyancing businesses.
Until his transition from Executive to Non-executive Director on 27 August 2012, Mr Lennon was Peet Limited’s
National Business Development Director.
In 2019 he became a director of Habitat for Humanity (Vic). Part of a worldwide organisation, it is a registered charity
which assists low income families into affordable home ownership and out of the rental market by providing no interest
mortgages.
TREVOR ALLEN
BComm (Hons), CA, FF, FAICD
INDEPENDENT NON-EXECUTIVE DIRECTOR
was responsible for the provision of legal advice and strategic planning in relation to the management of legal risk in the
Wesfarmers Group with key outputs including the evaluation and completion of major business projects and major
supply arrangements.
Ms Krause has completed the PMD Management Course at Harvard Business School.
She is a former director of Western Power.
ROBERT MCKINNON
FCPA, FCIS, FGIA, MAICD
LEAD INDEPENDENT NON-EXECUTIVE DIRECTOR
Appointed as Non-executive Director in May 2014, Bob McKinnon has 40 years’ experience in finance and general
management positions in the light manufacturing and industrial sectors in Australia, New Zealand, and Canada.
He is the former Managing Director of Austal Ships and Fleetwood Corporation Limited and spent 28 years with Capral
Trevor Allen joined Peet in April 2012, with almost four decades of experience in the corporate and financial sectors,
Aluminium (formerly Alcan Australia) in various financial and senior executive positions.
primarily as a corporate and financial advisor to Australian and international public and privately-owned companies.
Mr McKinnon is a Director of DGL Group Limited; the former Non-executive Chairman of M8 Sustainable Limited; and,
Mr Allen is a Non-executive Director of Eclipx Group Limited, where he chairs its Audit and Risk Management
was previously a Non-executive Director of Bankwest, Brierty Limited, Programmed Maintenance Services Limited and
Committee and is a member of its Remuneration Committee. He is also a non-executive director of TopCo Investments
Tox Free Solutions Limited.
Pte Ltd, a Singapore company which is the holding company of Real Pet Food Company Limited, where he chairs its
Risk and Sustainability Committee and is the Deputy Chair of its Finance and Audit Committee.
2. PRINCIPAL ACTIVITIES
During the last three years, Mr Allen was a director of Freedom Foods Group Limited, retiring from that position in
The Group acquires, develops and markets residential land, predominantly under a capital-efficient funds management
January 2021.
model.
Prior to Mr Allen’s non-executive roles, he held senior executive positions including Executive Director Corporate
Finance at SBC Warburg (now part of UBS), at Baring Brothers and as a Corporate Finance Partner at KPMG. At the
time of his retirement from KPMG in 2011 he was the lead partner in its National Mergers and Acquisitions group.
Peet was founded in Western Australia in 1895 and has expanded over the years to become Australia’s largest pure-play
residential developer. Peet has been listed on the ASX since 2004 and is focused on creating high-quality master-
planned residential communities for homebuyers across Australia, and achieving the best possible results for its
shareholders, investors and partners who include State and Federal Government agencies and major Australian
institutions.
As at 30 June 2021, the Group employed 195 people in offices throughout Australia and managed and marketed a land
bank of more than 44,900 lots in the growth corridors of major mainland Australian cities.
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ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Report
Year ended 30 June 2021
3. REVIEW OF OPERATIONS AND CONSOLIDATED RESULTS
OPERATIONAL COMMENTARY
OPERATING AND FINANCIAL REVIEW
KEY RESULTS 1
• Operating profit 2 and statutory profit 3 after tax of $28.5 million
• Earnings per share of 5.9 cents per share
• FY21 dividends of 3.5 cents per share, fully franked
• Revenue 4 of $234.3 million, with 2,980 lots settled
• EBITDA 5 of $58.1 million
• 1,948 contracts on hand 6 as at 30 June 2021
• Gearing 7 of 24.8%
FINANCIAL COMMENTARY
The Peet Group achieved an operating profit 2 and statutory profit 3 after tax of $28.5 million for the year ended 30 June
2021 (“FY21”), which represent increases of 89% and 195%, respectively on FY20. The profit for FY21 is at the upper
end of the earnings guidance announced to the market in July 2021 of an earnings range of $27.5 million to
$29.0 million.
The improved profit is on the back of both higher sales and settlements volumes across the Group’s three business
segments and across most states that it operates in, supported by continuing favourable market conditions, government
stimulus and consumer confidence during FY21.
The Group derived EBITDA 5 of $58.1 million during FY21, compared to $37.0 million (before divestment and related
provisions) in FY20, with an EBITDA 5 margin of 25%, compared to the margin achieved in FY20 of 19%. This margin
increase is attributable to revenue increases from increased sales and settlements accompanied by price growth across
the portfolio and a continued focus on cost management.
The performance has resulted in an operating and statutory earnings per share of 5.9 cents for FY21, compared to
operating earnings per share of 3.1 cents and statutory loss per share of 6.2 cents in FY20.
The Group’s focus on prudent capital management allowed it to proactively implement capital management initiatives in
response to COVID-19. This focus has continued, allowing it to release, develop and construct its products in response
to the increased demand from customers around the country.
The Group enters FY22 in a strong capital position, with gearing 7 at 30 June 2021 of 24.8% (30 June 2020: 28.8%),
which is within the Company’s target range of 20% to 30%.
COVID-19 responses
While business practices normalised across the majority of the country in the first half of FY21, Melbourne continued to
be subject to significant disruption resulting from COVID-19-related lock downs. While sales and settlements from our
Victorian portfolio remained solid and market conditions resilient, the Group continued to prioritise the safety and
wellbeing of its Victorian employees, who have demonstrated enormous character and resilience.
The Group achieved 3,142 sales 8 (with a gross value of $858.8 million) for the full year across its Funds Management,
Development and Joint Venture projects, representing an increase of 35% on the number of sales achieved in FY20.
Sales in 2H21 continued the improving momentum experienced during 1H21 and have continued to improve during the
first quarter to date of FY22.
The Group achieved 2,980 settlements 8 for the full year across its Funds Management, Development and Joint Venture
projects, representing an increase of 66% compared with FY20.
At 30 June 2021, there were 1,948 contracts on hand 8, with a gross value of $546.6 million, compared with 1,786
contracts on hand 8 with a gross value of $427.7 million at 30 June in 2020. This represents an increase of 9% in
contracts on hand 8 and a 28% increase in contract value, providing a positive momentum into FY22.
Funds management projects
Key highlights
• 1,613 lots sold 8 for a gross value of $406.0 million, compared with 1,412 lots sold 8 ($310.0 million) in FY20.
• 1,732 lots settled 8 for a gross value of $394.4 million, compared with 924 lots settled 8 ($217.9 million) in FY20.
• 1,054 contracts on hand 8 as at 30 June 2021 with a total value of $252.8 million, compared with 1,173 contracts on
hand 8 ($241.2 million) as at 30 June 2020.
• EBITDA 9 of $29.2 million compared with $13.0 million in FY20.
• EBITDA 9 margin increased to 69% from 53% in FY20.
The 14% increase in sales and the 87% increase in settlements contributed to EBITDA 9 increasing 125%.
As at 30 June 2021, approximately 61% of the Group’s land bank comprised Funds Management projects. This business
provides Peet with a capital-lite earnings base which contributed approximately 42% of the Group’s EBITDA 9,10 for FY21.
Development projects
Key highlights
• 531 lots sold 8 for a gross value of $166.2 million, compared with 432 lots sold 8 ($118.2 million) in FY20.
• 484 lots settled 8 for a gross value of $129.2 million, compared with 434 lots settled 8 ($115.8 million) in FY20.
• 256 contracts on hand 8 as at 30 June 2021 with a total value of $95.4 million, compared with 209 contracts on hand 8
($58.4 million) as at 30 June 2020.
• EBITDA 9 of $21.8 million compared with $23.5 million 11 in FY20.
• EBITDA 9 margin of 16% compared with 18% 11 in FY20.
The reduction in the EBITDA 9 margin can be partly attributed to the first phase of the Craigieburn, Aston (Vic) project
substantially completing settlements in FY20. However, the commencement of settlements from the Group’s
townhouse projects partially offset this decrease. Increased investment in the Group’s townhouse business is expected
to show EBITDA 9 improvement over the next 12 to 24 months.
As at 30 June 2021 approximately 26% of the Group’s land bank comprised Development projects.
1 Comparative period is 30 June 2020, unless stated otherwise. The non-IFRS measures have not been audited.
2 Operating profit is a non-IFRS measure that is determined to present the ongoing activities of the Group in a way that reflects its operating performance. Operating profit excludes unrealised fair value gains/
(losses) arising from the effect of revaluing assets and liabilities and adjustments for realised/unrealised transactions outside the core ongoing business activities.
3 Statutory profit/(loss) after tax means net profit/(loss) measured in accordance with Australian Accounting Standards, attributable to the owners of Peet Limited.
4
Includes statutory revenue of $220.3 million (FY20: $188.2 million) and share of net profits from associates and joint ventures of $14.0 million (FY20: $8.1 million).
5 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
6
7 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash)/(Total assets less cash, less intangible assets).
Includes equivalent lots.
Includes equivalent lots.
8
9 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
10 Before inter-segment transfers and other unallocated items.
11 Before divestment and related provisions in FY20.
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ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Report
Year ended 30 June 2021
3. REVIEW OF OPERATIONS AND CONSOLIDATED RESULTS continued
During FY21, Peet Limited:
Joint Ventures
Key highlights
• 998 lots sold 12 for a gross value of $286.6 million, compared with 479 lots sold 12 ($100.5 million) in FY20.
• 764 lots settled 12 for a gross value of $216.3 million, compared with 436 lots settled 12 ($103.0 million) in FY20.
• 638 contracts on hand 12 as at 30 June 2021 with a total value of $198.4 million, compared with 404 contracts
on hand 12 ($128.1 million) as at 30 June 2020.
• EBITDA 13 of $18.3 million compared with $8.8 million 14 in FY20.
• EBITDA 13 margin of 35% compared with 22% 14 in FY20.
Sales increased 108% during the year on the back of strong sales from the Googong (NSW), Lightsview (SA) and
Edens Crossing (Qld) projects.
Settlements were 75% higher in FY21, compared to FY20, resulting in the EBITDA 13,14 contribution increasing 108%.
As at 30 June 2021 approximately 13% of the Group’s land bank comprised Joint Venture projects, with major projects
located in Qld, NSW, WA and SA.
Land portfolio metrics
Lot sales 12
Lot settlements 12
Contracts on hand 12 as at 30 June
– Number
– Value
CAPITAL MANAGEMENT
FY21
3,142
2,980
FY20
2,323
1,794
1,948
1,786
$546.6 million
$427.7 million
Change
35%
66%
9%
28%
• extended its on-market share buy-back of up to 5% of its issued ordinary shares. As at 30 June 2021, the Company
had acquired 6.7 million of its ordinary shares, representing approximately 27% of the total shares to be acquired, and
subsequent to year end announced that the on-market buy-back has been extended for a further 12 months; and
• refinanced $100 million of five-year fixed rate bonds (ASX:PPCHA) via the issue of $75 million, five and quarter
years floating unlisted notes and a $25 million increase in its senior bank debt facilities, resulting in an increase in the
weighted average debt maturity and a reduction in the weighted average cost of borrowing.
DIVIDENDS
Subsequent to year end, the Directors declared a final dividend for FY21 of 2.5 cent per share, fully franked. This brings
the total dividend for FY21 to 3.5 cents per share. This compares to the FY20 dividend of 1.5 cents per share, fully
franked. The final FY21 dividend is to be paid on Monday, 11 October 2021, with a record date of Friday, 17 September
2021.
The Directors have resolved to keep the Company’s Dividend Reinvestment Plan deactivated.
GROUP STRATEGY
Key elements of the Group’s strategy for the year ahead and beyond include:
• continuing to leverage its large-scale national portfolio to further improve returns by:
– accelerating production to meet current demand and increasing operating cash flows;
– continuing to focus on improving project returns and operating margins through efficient master planning,
affordable product development, cost reduction initiatives and efficient allocation of capital; and
– continuing to balance the portfolio between land and built form projects, increasing the weighting to east coast
markets and remaining focussed on the right product in the right markets;
• continuing to assess capital recycling opportunities by:
The Group continues to apply a prudent focus on capital management and its gearing 15 as at 30 June 2021 was 24.8%
– assessing further divestment opportunities to maximise market cycles to unlock value where appropriate;
(30 June 2020: $28.8%) and within its target range of 20% to 30%.
– continuing to develop Funds Management/Joint Venture initiatives with existing and new capital partners; and
At 30 June 2021, the Group had net interest-bearing debt 16 (including Peet Bonds) of $203.9 million, compared with
– evaluating “super lot” opportunities within the portfolio; and
$235.3 million at 30 June 2020.
• considering selective acquisitions to restock the pipeline when appropriate.
Peet enters FY22 with cash and debt facility headroom of $175.1 million as at 30 June 2021 and a weighted average
debt maturity of over three years. It has the capacity to accelerate delivery of product to meet the material increase in
RISKS
demand following the introduction of Government stimulus.
Gearing 15 during FY22 is expected to be at the upper end of the 20% to 30% target range due to the significant level of
construction activity and anticipated to be undertaken.
Includes equivalent lots
12
13 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
14 Before divestment and related provisions in FY20.
15 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash)/(Total assets less cash, less intangible assets).
16
Including net debt of syndicates consolidated under AASB10.
The Group’s operating and financial performance is influenced by a number of risks impacting the property sector.
These include bank lending conditions, general economic conditions, government policy influencing a range of matters
including population growth (immigration policy), household income and consumer confidence, the employment market
and land development conditions and requirements, including in relation to infrastructure, environmental and climate-
change management.
In respect to climate change, the Group’s focus continues to be on understanding and mitigating climate change risks
on development approvals processes, reputational matters and reporting obligations.
Global and domestic economic factors which may influence capital markets and the movement of interest rates are also
risks faced by the Group.
At an individual project level, residential property developments also face a number of risks related to the price and
availability of capital, the timeliness of approvals, delays in construction, and the level of competition in the market. The
Group has a long history of managing these risks at an individual project and portfolio level.
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ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Report
Year ended 30 June 2021
3. REVIEW OF OPERATIONS AND CONSOLIDATED RESULTS continued
7. DIVIDENDS
The Group’s financial risk management policies are set out in note 17 to the Financial Report.
In August 2020, the Directors declared a final dividend of 1.0 cents per share, fully franked, in respect of the year ended
Particular focus in the short-term will be on risks associated with COVID-19, including:
• prolonged government lock downs negatively impacting the general economy, consumer confidence, supply chains
and halting the current positive market momentum;
• rising development and labour costs due to border restrictions/closures; and
• the potential for development programs to be extended.
30 June 2020. The dividend of $4.8 million was paid on Thursday, 19 November 2020.
In February 2021, the Directors declared an interim dividend of 1.0 cents per share, fully franked, in respect to the year
then ending 30 June 2021. The dividend of $4.8 million was paid on Thursday, 8 April 2021.
Subsequent to year end, the Directors declared a final dividend for FY21 of 2.5 cent per share, fully franked. This brings
the total dividend for FY21 to 3.5 cents per share. This compares to the FY20 dividend of 1.5 cents per share, fully
franked. The final FY21 dividend is to be paid on Monday, 11 October 2021, with a record date of Friday, 17 September
The property market is cyclical and, while the Group is impacted by fluctuations in the market, it has also proved its
2021.
capacity to manage through various cycles over a very significant period of time. This continues to include managing
risks associated with changing consumer preferences for products – size, location, product typology (house and land,
low-rise apartments and medium density townhouses).
OUTLOOK
Continuing residential sales momentum, a significant development pipeline and a strengthening balance sheet,
positions the Group well for future growth.
Residential markets are expected to remain positive over the medium term supported by low interest rates,
accommodative credit conditions and an improving employment outlook.
Subject to the above risks, FY22 is expected to be a year focused on the delivery of a significant number of land lots and
townhouses sold during FY21 along with the commencement of up to six new projects.
The Group is well-positioned to target growth on FY21 earnings, subject to market conditions and the timing of
settlements.
4. EARNINGS PER SHARE
Basic and diluted earnings/(loss) per share
The Directors have resolved to keep the Company’s Dividend Reinvestment Plan deactivated.
8. ENVIRONMENTAL REGULATION
The Group is subject to environmental regulation by way of the Environment Protection and Biodiversity Conservation
Act 1999 in respect of its land subdivision activities nationally, as well as other environmental regulations under both
Commonwealth and State legislation.
The Group is not aware of any breaches of environmental regulations in respect of its activities. However, from time to
time, statutory authorities make enquiries, issue notices requiring documents and/or material to be provided, and
undertake investigations or audits to confirm compliance with relevant regulations.
GREENHOUSE GAS AND ENERGY DATA REPORTING REQUIREMENTS
The Group may be subject to the reporting requirements of the National Greenhouse and Energy Reporting Act 2007.
This requires the Group to report its annual greenhouse gas (GHG) emissions and energy use if it has operational control
of facilities (sites) that emit greenhouse gases, produce energy, or consume energy at or above the specified GHG
emission and energy thresholds per financial year.
2021
Cents
5.9
2020
Cents
(6.19)
The Group is not required to register and report to the Clean Energy Regulator as the Group does not have operational
control for each of its projects, which is the responsibility of the relevant contractor undertaking the works, and the
remainder of the Group’s activities fall below the reporting thresholds for the FY21 reporting period.
Basic earnings per share is calculated after income tax expense based on the weighted average number of shares on
issue for the year ended 30 June 2021. The weighted average number of shares on issue used to calculate earnings per
share is discussed at note 7 to the Financial Report.
5. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during the year.
6. MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Other than the final FY21 dividend (details of which are included below), no matters or circumstances have arisen since
the end of the financial year, which have significantly affected or may significantly affect the operations of the Group,
the results of those operations, or the state of affairs of the Group in subsequent financial years.
9. INFORMATION ON DIRECTORS AND GROUP COMPANY SECRETARY
Please refer to the Board of Directors section of this report for information on Directors.
GROUP COMPANY SECRETARY
Dom Scafetta is a Chartered Accountant who has worked with Peet Limited since 1998.
Mr Scafetta began his career with major accounting firm Coopers & Lybrand (now PricewaterhouseCoopers) after
completing a commerce degree in 1993. He held a senior role with the organisation in its Business Services division and
advised a range of clients on accounting, taxation and general business matters.
After four years at Coopers & Lybrand, Mr Scafetta joined Peet as Company Accountant and Company Secretary, which
also required him to act as Company Secretary for the Company’s various syndicates and subsidiaries. Prior to Peet
being listed on the Australian Securities Exchange, Mr Scafetta was appointed Chief Financial Officer and served in that
role until February 2005, when he was appointed as Company Secretary of Peet Limited.
38
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ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Report
Year ended 30 June 2021
10. DIRECTORS’ MEETINGS
The number of meetings of Directors (including meetings of committees of Directors) held during the year and the
number of meetings attended by each Director were as follows:
Board of
Directors
Audit & Risk Management
Committee
Remuneration
Committee
Nomination
Committee
Entitled
to Attend
Attended
Entitled
to Attend
Attended
Entitled
to Attend
Attended
Entitled
to Attend
Attended
21
21
21
21
21
21
21
21
21
20
21
21
–
–
8
8
–
8
–
–
8
8
–
8
–
–
3
3
3
3
–
–
3
3
3
3
2
2
2
2
2
2
2
2
2
2
2
2
Director
A W Lennon
B D Gore
A J Lennon
T J Allen
V Krause
R J McKinnon
On some occasions, Board and Committee meetings may have been called or rescheduled on short notice which meant
that some Directors may not have been able to attend.
11. RETIREMENT, ELECTION AND CONTINUATION IN OFFICE OF DIRECTORS
Directors are elected at the Annual General Meeting (AGM) of the Company. Retirement will occur on a rotational basis
so that one third of the Directors, but not less than two, shall retire at each AGM. The Directors may also appoint a
Director to fill a casual vacancy on the Board or in addition to the existing Directors, who will then hold office until the
next AGM. No Director who is not the Managing Director, may hold office without re-election beyond the third AGM
following the meeting at which the Director was last elected or re-elected.
At this year’s AGM, both Mr T J Allen and Mr R J McKinnon will retire by rotation and offer themselves for re-election.
Your Board of Directors recommend the re-election of Mr T J Allen and Mr R J McKinnon.
12. REMUNERATION
Dear Shareholder,
Peet is pleased to present its Remuneration Report for the year ended 30 June 2021. This report sets out remuneration
information for Non-executive Directors (“NEDs”), the Managing Director and Chief Executive Officer (“MD”) and other
key management personnel (“KMP”). It focuses on the remuneration decisions made by the Board and the pay
outcomes that resulted.
To ensure Peet delivers on its growth strategy it must have the right people to lead the Group over the long-term and a
competitive remuneration framework that encourages our Leadership Team to continue to make decisions with a view
to creating long-term value for shareholders and all stakeholders.
In considering remuneration outcomes, the Board’s Remuneration Committee:
(a) balances Peet’s financial performance with the development and implementation of strategies for the long-term
benefit of the Group; and
While the statutory financial statements show total revenue of $234.3 million and earnings before interest, tax,
depreciation and amortisation (“EBITDA”) of $58.1 million for the 2021 financial year, Peet management remains
responsible for a greater scale of business.
In addition to its own land development projects, Peet is also responsible for the management of a significant portfolio
of land development projects held within its Funds Management and Joint Arrangements businesses. These Funds
Management and Joint Arrangement businesses generated revenues of $587.1 million and EBITDA of $122.0 million.
Accordingly, the scale of business from which Peet derives its revenues and earnings, which drive its capacity to pay
dividends to shareholders, is extensive.
Key remuneration outcomes during the year ended 30 June 2021 included:
• The MD’s base pay for the year ended 30 June 2021 was the same as for the previous year.
• There were no increases in the base pay of the other KMP, including NEDs, during the year ended 30 June 2021.
• During the year, long-term incentive performance conditions were tested as at 30 June 2020 in respect to the
performance over the three years ended on that date resulting in the partial vesting of performance rights. The
exercise of any vested performance rights was met by way of ordinary shares acquired on market during the 2021
financial year.
• Short-term incentives will be paid to KMP in respect of the year ended 30 June 2021, following a positive
assessment of the individual KMP’s performance against a balanced scorecard, which includes consideration of
Group financial and strategic targets. The MD was entitled to 100% of his short-term incentive entitlement, however
the Remuneration Committee and the Board, in agreement with the MD, applied discretion to reduce the MD’s
entitlement to 80%.
• In response to COVID-19:
– all members of the Leadership Team, as well as other members of senior management, took a voluntary 20%
reduction of fixed salaries for the last two months of FY20, which extended to 31 July 2020; and
– all NEDs took a voluntary 20% reduction of Directors’ fees for the last two months of FY20, which extended to 31
July 2020.
Peet also takes the opportunity to confirm that the MD’s base pay for the year ending 30 June 2022 will be the same as
2021, notwithstanding his contractual entitlement to an adjustment of at least CPI. The MD’s base pay was last
amended with effect from 1 July 2014. Additionally, the FY21 base pays of all other KMP, including NEDs, will remain
the same as their FY21 base pays.
We encourage our shareholders to use the cash value of remuneration realised table on page 13 to assess the
remuneration outcomes for KMP in the year ended 30 June 2021 and the alignment of these outcomes with the
Group’s performance.
The key difference between the cash value of remuneration realised and the statutory remuneration is the value
included in the statutory remuneration table for potential future outcomes under the long-term incentive. A value is
required to be included in the statutory remuneration table to account for long-term incentives that may or may not vest
in the future, while the value for long-term incentives included in the cash value of remuneration realised table
represents the value of shares actually received by KMP following the vesting and exercise of performance rights.
(b) takes into account the underlying scale of Peet’s operations which are not fully identifiable from a pure focus on the
Group’s statutory accounts.
The Board is satisfied that these remuneration outcomes for the year ended 30 June 2021 are appropriately
performance-based while at the same time recognising the strategic needs of the Group, and we commend this report
Peet achieved an operating net profit after tax and a statutory profit after tax of $28.5 million for the 2021 financial year,
compared to an operating profit after tax of $15.1 million and a statutory loss after tax of $30.1 million in the previous year.
to you.
Robert McKinnon
Chairman, Remuneration Committee
40
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ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Report
Year ended 30 June 2021
13. REMUNERATION REPORT (AUDITED)
The Remuneration report is set out under the following main headings:
A. SERVICE AGREEMENTS
B. PRINCIPLES USED TO DETERMINE THE NATURE AND AMOUNT OF REMUNERATION
The objective of the Company’s executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aligns executive reward with achievement of strategic objectives
for the long-term benefit of the Company and shareholders. The Board ensures that executive reward satisfies the
B. PRINCIPLES USED TO DETERMINE THE NATURE AND AMOUNT OF REMUNERATION
following key criteria for good reward governance practices:
C. DETAILS OF REMUNERATION
D. SHARE-BASED COMPENSATION
E. ADDITIONAL INFORMATION
The information provided in this remuneration report has been audited as required by section 308(3C) of the
Corporations Act 2001.
The key management personnel of the Group (“KMP”) include the Non-executive Directors (“NEDs”) of the Group, and
the following executives (the “Executives”) who have authority and responsibility for planning, directing and controlling
the activities of the Group.
Name
Position
B D Gore
Managing Director and Chief Executive Officer
B C Fullarton
Chief Financial Officer
D Scafetta
Group Company Secretary
P J Dumas
Chief Investment Officer
A. SERVICE AGREEMENTS
Remuneration and other terms of employment for the Executives are formalised in service agreements. Each of these
agreements provide for the provision of performance related cash bonuses and participation, when eligible, in the Peet
Limited Employee Share Option Plan and/or the Peet Limited Performance Rights Plan. The major provisions of the
agreements are set out below.
All contracts with Executives may be terminated early by either party with 3 to 6 months’ notice, subject to termination
payments as detailed below.
Name
B D Gore
Terms of Agreement
Base pay including
Superannuation 1
Termination Benefit 2,3
On-going renewed 5 August 2011
$937,300
Refer below 4
B C Fullarton
On-going commenced 21 October 2013
$440,000
3 months base pay inclusive of superannuation
D Scafetta
On-going commenced 10 June 1998
P J Dumas
On-going commenced 4 February 2008
$350,000
$485,000
3 months base pay inclusive of superannuation
3 months base pay inclusive of superannuation
1. Base pays, inclusive of superannuation, for the year ended 30 June 2021. Base pays are reviewed annually by the Remuneration Committee.
2. Termination benefits are payable on early termination by Peet Limited giving notice in writing. Payment may be made in lieu of notice, other than for gross misconduct.
3. Termination benefits referred to in the above table are in addition to any statutory entitlements payable (e.g. accrued annual leave and long service leave).
4. On 5 August 2011 B D Gore renewed his contractual arrangements with the Company. Under the agreement the components of his remuneration comprise fixed annual remuneration, short-term incentives and
long-term incentives. There is no fixed termination date and the agreement is terminable on six months notice by either party. The Company may, at its option, make a payment in lieu of part or all of the notice
period and certain conditions exist in relation to payment of long-term and short-term incentives upon termination. A summary of the key contractual terms and remuneration-related arrangements was disclosed to
the market on 5 August 2011 with certain parts approved by shareholders at the 2011 AGM.
• competitiveness and reasonableness;
• acceptability to shareholders;
• performance linkage/alignment to executive compensation; and
• capital management.
In consultation with external remuneration consultants in prior financial years, the Company has structured, and
continues to evolve, an executive remuneration framework that is market competitive and complementary to our reward
strategy through the following features.
ALIGNMENT TO SHAREHOLDERS’ INTERESTS
• has a relevant measurement of financial performance as a core component of plan design;
• rewards implementation of strategy;
• focuses the Executive on other key financial and non-financial drivers of long-term value; and
• attracts and retains high-calibre executives.
For the purpose of assessing Executives’ eligibility to short-term incentives, the Remuneration Committee and Board
have traditionally agreed to the use of a balanced scorecard. This methodology has continued to be used for the 2021
financial year, and comprised a combination of financial and non-financial key performance indicators.
During the 2018 financial year, the Remuneration Committee recommended to the Board, and it agreed, to assess
financial performance for the purposes of long-term incentive awards against earnings per share (EPS) growth, together
with funds under management growth. These performance measures have been used for each year thereafter and will
continue to be used for the 2022 financial year.
The Remuneration Committee and the Board will continue to assess the applicability of all short-term and long-term
related key performance indicators as they are applied in assessing performance for remuneration purposes.
ALIGNMENT TO PROGRAM PARTICIPANTS’ INTERESTS
• rewards capability and experience;
• provides a clear structure for earning rewards; and
• provides recognition for contribution.
The framework provides a mix of fixed and variable pay, and a blend of short and long-term incentives. As employees
are promoted to executive and senior management roles within the Company, the balance of this mix shifts to a higher
proportion of ‘at risk’ rewards.
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ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Report
Year ended 30 June 2021
13. REMUNERATION REPORT (AUDITED) continued
NEDS’ FEES (INCLUDING THE CHAIRMAN’S FEES)
Fees and payments to NEDs reflect the demands which are made on, and the responsibilities of, the NEDs. NEDs’ fees
and payments are reviewed periodically by the Remuneration Committee and the Board. The Remuneration Committee
considers, as appropriate, the advice of independent remuneration consultants to ensure NEDs’ fees and payments are
appropriate and in line with the market. NEDs do not receive share options or performance rights.
The NEDs’ remuneration is inclusive of committee fees and fees for their membership on any subsidiary Boards. The
fees payable to NEDs and the Chairman of the Remuneration Committee and the Chairman of the Audit and Risk
Management Committee were last amended with effect from 1 July 2018 (after last being amended with effect from
1 July 2014). NEDs may also be entitled to fees where they represent Peet on the Board of Syndicates.
NEDs’ fees are determined within an aggregate Directors’ fee pool limit, which is periodically recommended for
approval by shareholders. Shareholders approved a resolution at the 2012 AGM to increase the aggregate NEDs’ fees
pool to $900,000.
The NEDs do not receive any form of retirement allowance.
NEDs’ fees for the 2022 financial year will be the same as the 2021 financial year.
EXECUTIVE PAY
The Company’s pay and reward framework for Executives has the following components:
• base pay and benefits;
• short-term performance incentives; and
• long-term performance incentives.
The combination of these comprises the total remuneration for the individual concerned.
Base pay and benefits
The base pay for Executives is structured as a total employment cost package, which may be delivered as a mix of cash
and prescribed non-financial benefits and includes superannuation.
Executives are offered a competitive base pay that comprises the fixed component of pay and rewards. As and when
considered appropriate, external remuneration consultants provide analysis and advice to ensure base pay is set to
reflect the market for a comparable role. Base pay is reviewed annually to ensure it remains competitive with the
market. There were no changes to the quantum of total base pay for Executives during the 2021 financial year.
Short-term performance incentives (“STI”)
Executives have a target STI opportunity depending on the accountabilities of their specific role and impact on the
Group’s performance. The maximum target bonus opportunity for the Executives for the years ended 30 June 2021 and
2020 ranged between 50% and 100% of the relevant Executive’s base pay. However, the Board of Directors has the
discretion to either pay over and above or less than these amounts.
Each year, the Remuneration Committee considers the appropriate targets and key performance indicators (“KPIs”) to
link to the STI plan and the level of payout if targets are met for the Managing Director and Chief Executive Officer
(“MD”). This may include setting any maximum payout under the STI plan and minimum levels of performance to
trigger payment of STI. The MD will then generally set the STI KPIs to apply to the other Executives.
KPIs for the MD are set by reference to the following criteria based:
• financial;
• strategy;
• stakeholder engagement;
• people and processes improvements; and
• health, safety and environment.
For the year ended 30 June 2021, the MD was assessed as follows against the KPIs:
Category
Financial
Strategic
Stakeholder
People, processes and culture
Health, safety and environment
Less:
– Amount over 100.0%
– Discretionary adjustment by Board
Final assessment
Weighting (%)
Achieved (%)
70.0%
10.0%
7.5%
7.5%
5.0%
84.0%
10.0%
5.0%
5.0%
5.0%
100.0%
109.0%
(9.0%)
(20.0%)
80.0%
For the year ended 30 June 2020, the MD’s KPIs linked to the STI plan were based on similar criteria.
For the year ended 30 June 2021, the KPIs for Executives were determined by the MD, based on the above criteria. The
Executives were assessed to have been eligible for up to 100% of their maximum STI entitlement. However, the Board
applied its discretion to reduce the Executives’ eligibility to between 70% and 90% of their FY21 STI entitlements.
For the year ended 30 June 2020, the Executives’ KPI’ linked to the STI plan were based on similar criteria.
Long-term incentives (“LTI”)
Traditionally, the Company has provided its Executives with LTI through participation in the Peet Limited Employee
Share Option Plan (“PESOP”) and/or the Peet Limited Performance Rights Plan (“PPRP”).
Executives have a target LTI opportunity depending on the accountabilities of their specific role and impact on the
Group’s performance. The maximum target opportunity for the Executives for the years ended 30 June 2021 and 2020
ranged between 50% and 100% of the relevant Executive’s base pay.
Each year, the Remuneration Committee considers the appropriate targets and KPIs to link to the LTI plan and the level
of payout if targets are met for the Executives. This may include setting any maximum payout under the LTI plan and
minimum levels of performance to trigger payment of LTI. Further details of the Company’s LTI structures are included
in the section titled ‘Share-based compensation’.
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ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Report
Year ended 30 June 2021
13. REMUNERATION REPORT (AUDITED) continued
C. DETAILS OF REMUNERATION
Details of the statutory and cash value of remuneration of each member of the KMP of the Group are set out in the
tables following.
The statutory disclosures required by the Corporations Act 2001 (Cth), as amended and its regulations are set out in the
table on page 47. The company believes that the additional information provided in table below is useful to investors.
The table below sets out the total cash value of remuneration realised for the KMP and provides shareholders with
details of the “take-home” pay received/receivable during the year. These earnings include cash salary and fees, bonus,
superannuation, non-cash benefits received/receivable during the year and the value of shares issued to, or acquired on
behalf of, KMP following the vesting of Performance Rights (“PRs”) during the financial year. The table does not include
the accounting value of share-based payments consisting of PRs granted in the current and prior years required for
statutory purposes. This is because those share-based payments are dependent on the achievement of performance
hurdles and so may or may not be realised.
Cash salary
and fees 1
$
Bonus 2
$
Value of PRs
exercised 3
$
Other 4
$
Superannuation
$
Directors
A W Lennon
T J Allen
V Krause
R J McKinnon
A J Lennon
B D Gore
Total
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
Other key management personnel
P J Dumas
D Scafetta
B C Fullarton
Total
2021
2020
2021
2020
2021
2020
2021
2020
227,993
224,129
140,781
138,395
91,390
89,841
113,841
111,911
151,390
147,841
899,984
885,054
1,625,379
1,597,171
451,917
443,833
322,473
317,331
407,667
400,333
1,182,057
1,161,497
–
–
–
–
–
–
–
–
–
–
749,840
–
749,840
–
203,700
–
157,500
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
226,705
198,000
–
559,200
–
–
–
–
226,705
–
–
–
–
–
–
–
–
–
–
10,000
10,000
10,000
10,000
–
–
–
–
–
–
–
–
21,659
21,292
13,374
13,148
8,682
8,535
10,815
10,632
8,682
8,535
21,694
21,003
84,906
83,145
25,000
25,000
21,694
21,003
25,000
25,000
71,694
71,003
Total
$
249,652
245,421
154,155
151,543
100,072
98,376
124,656
122,543
160,072
156,376
1,681,518
916,057
2,470,125
1,690,316
680,617
468,833
501,667
565,039
630,667
425,333
1,812,951
1,459,205
1. Cash salary (including accrued annual leave) and fees, as well as fees paid to Directors for their directorship on Syndicate Boards.
2. All cash bonuses are earned in the financial year to which they relate and are paid during the following financial year.
3. Amount paid by the Company in order to settle the PRs exercised during years ended 30 June 2020 and 2021. The Company purchased ordinary shares in the Company on-market on behalf of KMP.
4. Other includes termination benefits, long service payments, motor vehicle costs, car-parking and other benefits.
The table below is calculated in accordance with statutory obligations and Australian Accounting Standards. The
amounts in the “Share-based payments” column relate to the component of the fair value of awards from the current
year and prior years made under the various incentive plans attributable to the year measured in accordance with
AASB 2 Share-based Payments.
Short-term benefits
Post-employment
benefits
Share-based
payments
Cash salary
and fees 1
$
Bonus 2
$
Other 3
$
Superannuation
$
Shares/
Options/
Performance
Rights 4
$
Termination
benefits
$
Directors
A W Lennon
T J Allen
V Krause
R J McKinnon
A J Lennon
B D Gore
Total
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
227,993
224,129
140,781
138,395
91,390
89,841
113,841
111,911
151,390
147,841
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
899,984
749,840
885,054
–
1,625,379
749,840
1,597,171
–
10,000
10,000
10,000
10,000
Other key management personnel
P J Dumas
D Scafetta
B C Fullarton
Total
2021
2020
2021
2020
2021
2020
2021
2020
451,917
203,700
443,833
–
322,473
157,500
317,331
–
407,667
198,000
400,333
–
1,182,057
559,200
1,161,497
–
–
–
–
–
–
–
–
–
21,659
21,292
13,374
13,148
8,682
8,535
10,815
10,632
8,682
8,535
21,694
21,003
84,906
83,145
25,000
25,000
21,694
21,003
25,000
25,000
71,694
71,003
–
–
–
–
–
–
–
–
–
–
638,955
518,760
638,955
518,760
198,374
160,006
119,297
96,224
149,973
120,967
467,644
377,197
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total
$
249,652
245,421
154,155
151,543
100,072
98,376
124,656
122,543
160,072
156,376
2,320,473
1,434,817
3,109,080
2,209,076
878,991
628,839
620,964
434,558
780,640
546,300
2,280,595
1,609,697
1. Cash salary (including accrued annual leave) and fees include fees paid to Directors for their directorship on Syndicate Boards.
2. All cash bonuses are earned in the financial year to which they relate and are paid during the following financial year.
3. Other includes motor vehicle costs, car-parking and other benefits.
4. The value placed on options and performance rights in the table above is based on the valuation at the date of grant using a Black-Scholes model (options) or Binomial Model, pro-rated over the period from grant
date to vesting date. These do not represent the value of equity benefits that vested in favour of KMP during the year.
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ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Report
Year ended 30 June 2021
13. REMUNERATION REPORT (AUDITED) continued
INVITATIONS TO APPLY FOR OPTIONS AND/OR PERFORMANCE RIGHTS
The relative proportions of remuneration that are linked to performance and those that are fixed based on the table are
Eligible employees, at the discretion of the Board, may be invited to apply for options and/or PRs on terms and
as follows:
Directors
A W Lennon
T J Allen
V Krause
R J McKinnon
A J Lennon
B D Gore
Other key management personnel
P J Dumas
D Scafetta
B C Fullarton
Fixed remuneration
At risk STI
At risk LTI
2021
2020
2021
2020
2021 1
2020 1
100%
100%
100%
100%
100%
40%
54%
56%
56%
100%
100%
100%
100%
100%
64%
75%
78%
78%
–
–
–
–
–
32%
23%
25%
25%
–
–
–
–
–
0%
0%
0%
0%
–
–
–
–
–
28%
23%
19%
19%
–
–
–
–
–
36%
25%
22%
22%
1. Since LTI are provided exclusively by way of options and/or PRs, the percentages disclosed also reflect the value of remuneration consisting of options and/or PRs based on the value of options and/or PRs expensed
during the year.
D. SHARE-BASED COMPENSATION
Options over shares in Peet Limited are granted under the PESOP, which was approved by the Board and shareholders
during the 2004 financial year. PRs over shares in Peet Limited are granted under the PPRP, which was approved by
shareholders at the 2008 AGM. Changes have been made since to allow for changes in taxation of PRs. Employees of
any Group Company (including an Executive Director) will be eligible to participate in the PESOP and/or PPRP at the
discretion of the Board.
Any additional persons to whom ASX Listing Rule 10.14 applies and who became entitled to participate in a grant of PRs
under the PPRP after the approval of Resolution 4 considered at the 2020 AGM and who was not named in the Notice
of AGM will not participate until approval is obtained under ASX Listing Rule 10.14.
The PESOP and PPRP are designed to provide long-term incentives for Executives to deliver long-term shareholder
returns. Under the plans, participants are granted options and/or PRs, which only vest if the employees are still
employed by the Group at the end of the vesting period, subject to the Board’s discretion, and any set performance
hurdles have been met.
conditions to be determined by the Board including as to:
• the method of calculation of the exercise price of each option;
• the number of options and/or PRs being offered and the maximum number of shares over which each option and/or
PR is granted;
• the period or periods during which any of the options and/or PRs may be exercised;
• the dates and times when the options and/or PRs lapse;
• the dates and times by which the application for options and/or PRs must be received by Peet; and
• any applicable conditions which must be satisfied or circumstances which must exist before the options and/or PRs
may be exercised.
Eligible employees may apply for part of the options and/or PRs offered to them, but only in specified multiples.
CONSIDERATION
Unless the Board determines otherwise, no payment will be required for a grant of options and/or PRs under the PESOP
and/or PPRP.
EXERCISE CONDITIONS
Generally, as a pre-condition to exercise, any exercise conditions in respect of an option and/or PR must be satisfied.
However, the Board has the discretion to enable an option and/or PR holder to exercise options and/or PRs where the
exercise conditions have not been met, including, for example, where a court orders a meeting to be held in relation to a
proposed compromise or arrangement in respect of the Company, or a resolution is passed, or an order is made, for
winding up the Company.
Options granted under the PESOP and PRs granted under the PPRP carry no dividend or voting rights.
LAPSE OF OPTIONS AND/OR PRS
Unexercised options and/or PRs will lapse upon the earlier to occur of a variety of events specified in the rules of the
PESOP and PPRP including, on the date or in circumstances specified by the Board in the invitation, failure to meet the
options’ or PRs’ exercise conditions in the prescribed period or on a specified anniversary date of grant of the options or
PRs, as determined by the Board.
48
49
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Report
Year ended 30 June 2021
13. REMUNERATION REPORT (AUDITED) continued
NOTE 1
The table below summarises the status of the Company’s options and performance rights granted to Executives:
2
0
0
0
,
0
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,
0
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,
–
3
4
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3
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3
4
3
4
–
–
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9
7
7
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,
4
5
7
,
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1
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3
0
1
9
6
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3
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1
9
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7
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–
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(
The issue of a share-based payment award to a Director requires shareholder approval and the value at grant date is
taken as the date at which that approval is granted. Accordingly, the value of these PRs is based on 23 November 2016,
29 November 2017, 21 November 2018, 20 November 2019 and 19 November 2020, being the dates of Peet Limited’s,
2016, 2017, 2018, 2019 and 2020 AGMs, respectively.
NOTE 2
These options are convertible to ordinary shares on a 1:1 basis at the exercise price after the fourth anniversary of the
grant date.
The exercise condition in respect of these options is that Mr Gore remains employed as Managing Director for a period
of four years. Although the service period requirement has been met, the options have not been exercised.
NOTE 3
These PRs are convertible to ordinary shares on a 1:1 basis, with 40% subject to the Funds Under Management (FUM)
growth vesting condition measured over a three-year period from 1 July 2017 to 30 June 2020 (“FY18 Performance
Period”), 1 July 2018 to 30 June 2021 (“FY19 Performance Period”) and 1 July 2019 to 30 June 2022 (“FY20
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Performance Period”), respectively.
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The PRs granted in respect to the three-year period from 1 July 2020 to 30 June 2023 (“FY21 Performance Period”) are
convertible to ordinary shares on a 1:1 basis, with 25% subject to the FUM growth vesting condition.
FUM growth is measured as the total of the following during the performance period:
• the purchase price (ex GST) of land acquired by a Peet syndicate or Joint Venture; or
• the market value (ex GST) of land for which Peet has been appointed development manager at the time of its
appointment; or
• the selling price (ex GST) of land sold by Peet, a Syndicate, a Joint Venture or Peet-managed project to a third party
and Peet is appointed the development manager (and where applicable, to manage the leasing) of a commercial,
industrial, retail or residential built-form project on that property; or
• in all other property funds management-related transactions, as determined by the Board of Directors.
The aggregate of the FUM growth during the relevant performance period is reduced by the equity interest retained by
the Group and is then compared to the rolling three-year FUM growth target set by the Board for the relevant
performance period.
For the FY18, FY19 and FY20 Performance Periods, the proportion of PRs to vest subject to FUM growth will be as
follows:
Performance level
Less than the target
Target
Target – medium
Medium – maximum
Maximum
Aggregate FUM growth target
during performance period
Proportion of performance rights
that may be eligible to vest
Less than $60 million
$60 million
$60 million to $100 million
$100 million to $150 million
Greater than $150 million
0%
50%
Pro-rata between 50% and 70%
Pro-rata between 70% and 100%
100%
s
e
t
o
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50
51
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
Directors’ Report
Year ended 30 June 2021
13. REMUNERATION REPORT (AUDITED) continued
The Group achieved EPS growth of less than 80% of the target of 5% for the FY18 Performance Period. Accordingly, no
For the FY21 Performance Period, the proportion of PRs to vest subject to FUM growth will be as follows:
EPS growth-related FY18 PRs vested.
Performance level
Less than the target
Target
Target – medium
Medium – maximum
Maximum
Aggregate FUM growth target
during performance period
Proportion of performance rights
that may be eligible to vest
Less than $40 million
$40 million
$40 million to $60 million
$60 million to $75 million
Greater than $75 million
0%
50%
Pro-rata between 50% and 70%
Pro-rata between 70% and 100%
100%
The Group achieved FUM growth of $153.2 million for the FY18 Performance Period. Accordingly, the performance
condition was fully met and on 25 August 2020 the Directors resolved that 100% of these FY18 PRs vested.
The Group achieved FUM growth of $64.8 million for the FY19 Performance Period. Accordingly, the performance
condition was partially met and on 24 August 2021 the Directors resolved that 52.5% of these FY19 PRs vested.
The FY20 and FY21 PRs remain unvested.
NOTE 4
These PRs are convertible to ordinary shares on a 1:1 basis, with 60% subject to the EPS growth vesting condition,
measured over a three-year period from 1 July 2017 to 30 June 2020 (“FY18 Performance Period”), 1 July 2018 to 30
June 2021 (“FY19 Performance Period”) and 1 July 2019 to 30 June 2022 (“FY20 Performance Period”), respectively.
The PRs granted in respect to the three-year period from 1 July 2020 to 30 June 2023 (“FY21 Performance Period”) are
convertible to ordinary shares on a 1:1 basis, with 75% subject to the EPS growth vesting condition.
The EPS growth vesting condition will be measured as the average growth in operating EPS over the relevant
Performance Period, with the EPS derived for the previous financial year as the base year.
The earnings component of EPS is calculated as net profit measured in accordance with Australian Accounting
Standards, excluding write-downs of inventories and development costs and increases in the carrying value of
inventories during the relevant financial year, and is subject to other adjustments at the Board’s discretion.
EPS growth is then compared to the Board’s internal target EPS growth for the relevant performance period.
Of the PRs subject to EPS growth, the proportion to vest will be as follows:
Performance level
Less than 80% of the EPS growth target
80% of the EPS growth target
80% to 100% of the EPS growth target
100% to 120% of the EPS growth target
Proportion of performance rights that may be eligible to vest
0%
50%
Pro-rata between 50% and 80%
Pro-rata between 80% and 100%
Greater than 120% of the EPS growth target
100%
The Group achieved EPS growth of 6.25% for the FY19 Performance Period, compared to the EPS growth target of 5%
for that period. While the performance condition was fully met, and in accordance with the PPRP, the holders of FY19
PRs consented to a request by the Remuneration Committee to reduce the number of EPS growth-related FY19 PRs
vesting and on 24 August 2021 the Directors resolved that 65% of these FY19 PRs vested.
The FY20 and FY21 PRs remain unvested.
OPTION AND PERFORMANCE RIGHTS HOLDINGS
The number of options and PRs over unissued ordinary shares in the Company held during the financial year by the KMP
of the Group, including their personally-related entities, is set out below. When exercisable, each option and PR is
convertible into one ordinary share of Peet Limited.
Balance at
the start
of the year
Granted
during
the year
Exercised
during
the year
Lapsed/
forfeited
during the
year 1
Balance
at end of
the year
Vested and
exercisable
at the end
of the year
Directors
A W Lennon
T J Allen
V Krause
R J McKinnon
A J Lennon
B D Gore
Other key management personnel
P J Dumas
D Scafetta
B C Fullarton
–
–
–
–
–
–
–
–
–
–
4,907,546
1,244,754
1,420,171
493,359
870,223
386,454
232,404
292,165
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(524,608)
5,627,692
2,614,853
(162,873)
(97,948)
(123,134)
1,643,752
627,815
1,039,254
708,367
65,298
332,090
1.
Includes performance rights for which performance conditions were not met for the performance period.
During the year ended 30 June 2021, 605,709 PRs (2020: 1,844,660) had vested and NIL (2020: 198,864) were
exercised by KMP at $ Nil exercise price. In order to settle the PRs exercised during year ended 30 June 2021, the
Company purchased ordinary shares in the Company on-market on behalf of KMP.
On 19 November 2020, 1,244,754 FY21 PRs were granted to the Managing Director and Chief Executive Officer, B D
Gore. The grant was approved by shareholders under ASX Listing Rule 10.14.
Since 30 June 2021, 1,258,318 PRs (includes PRs exercisable by non KMP) vested and are exercisable at the date of
this report. No other options and PRs have been issued. Refer note 25 of the financial report for the total options and
PRs outstanding.
52
53
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Report
Year ended 30 June 2021
13. REMUNERATION REPORT (AUDITED) continued
E. ADDITIONAL INFORMATION
PERFORMANCE OF PEET LIMITED
The overall level of executive compensation takes into account the performance of the Group. STI is generally based on
an assessment of performance over a 12-month period, while LTI is generally assessed over a three-year period. The
high-level performance of the Group over the last five years is compared below:
Net profit/(loss) after tax (NPAT)
NPAT growth
$’000
Growth%
Net operating profit after tax (NOPAT)
$’000
NOPAT growth
Basic EPS
Basic EPS growth
Operating EPS
Operating EPS growth
Dividends paid/payable
Share price 30 June
Share price growth
Growth%
cents per share
Growth%
cents per share
Growth%
cents per share
$
Growth%
2017
44,792
5.2%
44,792
5.2%
9.14
5.1%
9.14
5.1%
4.75
1.20
27.7%
2018
49,112
9.6%
49,112
9.6%
10.02
9.6%
10.02
9.6%
5.00
1.32
10%
2019
47,549
(3.2%)
47,549
(3.2%)
9.79
(2.3%)
9.79
(2.3%)
5.00
1.12
2020
(30,056)
(163.2%)
15,060
(68.3%)
(6.19)
2021
28,500
194.8%
28,500
89.2%
5.90
(163.2%)
195.3%
3.10
(68.3%)
1.50
0.97
5.90
90.3%
3.50
1.20
Cash Bonus
Options & Performance Rights
Paid/
payable
%
Forfeited/
deferred
%
Financial year
Granted
Vested 1
%
Forfeited 1,2
%
Financial years
in which
options/PRs
may vest
Maximum total
Value of grant
yet to expense
$
Other key management personnel
P J Dumas
70%
30%
D Scafetta
90%
10%
B C Fullarton
90%
10%
2021
2020
2019
2018
2021
2020
2019
2018
2021
2020
2019
2018
–
–
–
–
–
–
40%
60%
–
–
–
–
–
–
40%
60%
–
–
–
–
–
–
40%
60%
2023
2022
2021
2020
2023
2022
2021
2020
2023
2022
2021
2020
295,457
174,547
101,593
211,572
177,681
104,969
61,096
127,234
223,370
131,960
76,806
159,952
(15.1%)
(13.4%)
23.7%
1.
2.
Includes performance rights for which performance conditions were met for the performance period and confirmed by the Directors after balance date.
Includes performance rights for which performance conditions were not met for the performance period.
DETAILS OF REMUNERATION: CASH BONUSES, OPTIONS AND PRS
For each cash bonus, grant of options and/or PRs included in the tables within the remuneration report, the percentage
of the available bonus or grant that was paid, or that vested and the percentage that was forfeited because the person
did not meet the service and performance criteria, is set out below. Generally, no part of the bonuses forfeited is
payable in future years. Subject to the rules of the PESOP and PPRP no options or PRs will vest if the conditions are not
satisfied, subject to the discretion of the Board, hence the minimum value of the option and PRs yet to vest is nil. The
maximum value of the options and PRs yet to vest has been determined as the amount of the grant date fair value of
the options and PRs that is yet to be expensed.
Cash Bonus
Options & Performance Rights
Paid/
payable
%
Forfeited/
deferred
%
Financial year
Granted
Vested 1
%
Forfeited 1,2
%
Financial years
in which
options/PRs
may vest
Maximum total
Value of grant
yet to expense
$
Directors
A W Lennon
T J Allen
V Krause
R J McKinnon
A J Lennon
B D Gore
–
–
–
–
–
–
–
–
–
–
80%
20%
–
–
–
–
–
2021
2020
2019
2018
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
40%
60%
–
–
–
–
–
2023
2022
2021
2020
–
–
–
–
–
951,656
562,209
327,228
696,680
Further details relating to options and/or PRs, either granted, exercised or lapsed during the year, are set out below. The
amounts below are calculated in accordance with Australian Accounting Standards. Please refer to previous pages of
the Remuneration Report for commentary on vesting conditions met during the performance period ended 30 June
2021.
Directors
B D Gore
Other key management personnel
P J Dumas
D Scafetta
B C Fullarton
Remuneration
consisting of options &
performance rights 1
Value of options &
performance rights
granted 2
Value of options &
performance rights
exercised 3
28%
23%
19%
19%
1,170,069
363,267
218,460
274,635
–
–
–
–
1. The percentage of the value of remuneration consisting of options and PRs, based on the value of options and PRs expensed during the current year.
2. The value at grant date calculated in accordance with AASB 2 Share-based payments of options and/or PRs granted during the year as part of remuneration.
3. The value at exercise date of options and/or PRs that were granted as part of remuneration and were exercised during the year, being the intrinsic value of the options and/or PRs at that date.
LOANS TO DIRECTORS AND OTHER KEY MANAGEMENT PERSONNEL
There were no loans made to KMP, or their personally-related entities, during the financial year.
54
55
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Report
Year ended 30 June 2021
13. REMUNERATION REPORT (AUDITED) continued
14. INDEMNITY OF OFFICERS AND AUDITORS
VOTING AND COMMENTS MADE AT THE COMPANY’S 2020 ANNUAL GENERAL MEETING
During the financial year, the Company paid a premium in respect of a Directors’ and Officers’ insurance policy that
The instructions given to validly appointed proxies in respect of the resolution pertaining to the Company’s 2020
Remuneration Report were as follows:
For
301,374,934
92.54%
Against
6,710,809
2.06%
Proxy’s discretion
17,573,357
5.4%
Abstain
177,825
The motion was carried as an ordinary resolution on show of hands.
INTERESTS IN THE SHARES AND BONDS OF THE COMPANY
Directors
A W Lennon
T J Allen
V Krause
R J McKinnon
B D Gore
A J Lennon
Balance at
the start of
the year
97,314,685
92,054
–
50,000
5,306,679
1,331,344
Other key management personnel
P J Dumas
D Scafetta
B C Fullarton
1,087,882
1,020,000
603,850
Shares
Received
during the
year on
exercise of
PRs
Other
changes
during the
year
Balance at
the end of
the year
Balance at
the start of
the year
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
97,314,685
92,054
–
50,000
5,306,679
1,331,344
1,087,882
1,020,000
603,850
4,875
500
1,000
500
–
500
–
–
–
Bonds
Other
changes
during the
year
(3,000)
1,000
(1,000)
(500)
–
(500)
–
–
–
Balance at
the end of
the year
1,875
1,500
–
–
–
–
–
–
–
Since 30 June 2021, 1,258,318 PRs (includes PRs exercisable by Non KMP) were vested and are exercisable at the date
of this report. No other options and PRs have been issued.
END OF REMUNERATION REPORT (AUDITED)
insures Directors and Officers of the Company. The liabilities insured are costs and expenses that may be incurred in
defending civil or criminal proceedings that may be brought against the Directors and Officers in their capacity as such.
The Directors have not included more specific details of the nature of the liabilities covered or the amount of the
premium paid in respect of Directors’ and Officers’ liability, as such disclosure is prohibited under the terms of the
contract.
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young Australia, as part of
the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified
amount). The indemnity does not apply to any loss in respect of any matters which are finally determined to have
resulted from the auditors’ negligent, wrongful or willful acts or omissions. No payment has been made to indemnify
the auditors during or since the financial year.
15. NON-AUDIT SERVICES
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the
auditor’s expertise and experience with the Company and/or the Group are considered important.
The Board of Directors has considered the position and, in accordance with the advice received from the Audit and Risk
Management Committee, is satisfied that the provision of the non-audit services is compatible with the general
standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the
provision of non-audit services by the auditor did not compromise the auditor independence requirements of the
Corporations Act 2001 for the following reasons:
• all non-audit services have been reviewed by the Audit and Risk Management Committee to ensure they do not
impact the impartiality and objectivity of the auditor; and
• none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants.
The fees that were paid or payable for services provided by the auditors of the Group, its related practices and non-
related audit firms is set out in note 22 of the Financial Report.
56
57
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Report
Year ended 30 June 2021
Auditor’s Independence Declaration
16. AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration, as required under section 307C of the Corporation Act 2001, is set out
on page 59.
On 19 February 2019, the Board granted approval under section 324DAA of the Corporations Act 2001 for Mr Geoff
Lotter to continue as lead auditor, to play a significant role in the audit of the company for two additional successive
financial years, being the financial year ending 30 June 2020 and 30 June 2021. The approval was granted in accordance
with a recommendation from the Audit and Risk Management Committee which was satisfied the approval:
• is consistent with maintaining the quality of the audit provided to the company; and
• would not give rise to a conflict of interest situation (as defined in section 324CD of the Corporations Act 2001).
Reasons supporting this decision include:
• the benefits associated with the continued retention of knowledge regarding key audit matters and significant
judgements, in light of the changes in residential property markets and bank lending policies;
• the Audit and Risk Management Committee has been satisfied with the quality of Ernst & Young and Mr Lotter’s
work as auditor; and
• the Audit and Risk Management Committee is satisfied with the introduction of a new engagement quality review
partner on the completion of the 30 June 2019 audit.
The company maintains, and will continue to maintain, robust auditor independence policies and controls to ensure the
independence of the auditor is maintained. A copy of the Board resolution granting approval was lodged with ASIC in
accordance with section 324DAC of the Corporations Act 2001.
17. ROUNDING OF AMOUNTS
The Company is of a kind referred to in ASIC Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to the “rounding off” of amounts in the Director’s Report. Amounts in the Director’s
Report have been rounded off in accordance with that legislative instrument to the nearest thousand dollars, or in
certain cases, the nearest dollar.
Signed for and on behalf of the Board in accordance with a resolution of the Board of Directors.
Brendan Gore
Managing Director and Chief Executive Officer
Perth, Western Australia
25 August 2021
58
59
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Corporate Governance Statement
Year ended 30 June 2021
A copy of the Group’s corporate governance policies and practices in place during the financial year ended 30 June 2021
is available at the following link:
https://www.peet.com.au/-/media/peet/documents/corporate/corporate/corporate-governance/2021
Unless otherwise stated, these are consistent with the 3rd edition of the ASX Corporate Governance Council’s
Principles and Recommendations (released March 2014).
Financial
Report
Contents
Consolidated Statement of Profit or Loss and Other Comprehensive Income ................................................................ 62
Consolidated Balance Sheet ............................................................................................................................................. 63
Consolidated Statement of Changes in Equity ................................................................................................................. 64
Consolidated Statement of Cash Flows ............................................................................................................................ 65
Notes to the Consolidated Financial Statements .............................................................................................................. 66
60
61
This financial report covers the consolidated financial statements for the Group consisting of Peet Limited and its subsidiaries. The financial report is
presented in Australian currency. Peet Limited is a for profit company limited by shares, incorporated and domiciled in Australia. Its registered office
and principal place of business is Level 7, 200 St Georges Terrace, Perth WA 6000. The financial report was authorised for issue by the Directors on
25 August 2021. The Directors have the power to amend and reissue the financial report. Through the use of the internet, we have ensured that our
corporate reporting is timely and complete. All press releases, financial reports and other information are accessible via our website; www.peet.com.au
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the year ended 30 June 2021
Consolidated Balance Sheet
As at 30 June 2021
Revenue
Expenses
Finance costs (net of capitalised borrowing costs)
Share of net profit of associates and joint ventures
Profit/(loss) before income tax
Income tax (expense)/benefit
Profit/(loss) after income tax
Attributable to:
Owners of Peet Limited
Non-controlling interests
Other comprehensive income
Items that may be reclassified to profit or loss:
Gain on cash flow hedges
Income tax relating to components of other comprehensive income
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Attributable to:
Owners of Peet Limited
Non-controlling interests
Notes
5
6
6
10
8
2021
$’000
220,267
(188,720)
(5,342)
14,033
40,238
(12,153)
28,085
2020
$’000
188,282
(230,253)
(7,428)
8,060
(41,339)
10,648
(30,691)
28,500
(415)
28,085
(30,056)
(635)
(30,691)
–
–
–
2,636
(794)
1,842
28,085
(28,849)
28,500
(415)
28,085
(28,214)
(635)
(28,849)
Earnings/(loss) per share – attributable to the ordinary equity holders of the Company
Basic and diluted earnings/(loss) per share
Notes
7
Cents
5.90
Cents
(6.19)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
Current assets
Cash and cash equivalents
Receivables
Contract assets
Inventories
Total current assets
Non-current assets
Receivables
Contract assets
Inventories
Investments accounted for using the equity method
Property, plant and equipment
Right-of-use assets
Intangible assets
Total non-current assets
Total assets
Current liabilities
Payables
Land vendor liabilities
Borrowings
Lease liabilities
Derivative financial instruments
Current tax liabilities
Provisions
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Derivative financial instruments
Deferred tax liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Retained profits
Capital and reserves attributable to owners of Peet Limited
Non-controlling interest
Total equity
Notes
11
12
9
11
12
9
10
2(e)
13
14
17(c)
17(d)
17
15
17
17(c)
17(d)
8
15
18
18
2021
$’000
64,125
25,925
11,528
114,898
216,476
52,809
3,726
375,027
232,622
3,096
3,848
2,194
673,322
889,798
34,549
–
3,555
1,797
1,529
6,371
12,730
60,531
2020
$’000
46,838
36,943
8,536
87,087
179,404
69,575
4,336
391,372
232,061
4,157
5,188
2,589
709,278
888,682
33,444
6,350
118,275
1,607
–
687
14,628
174,991
264,430
163,879
3,723
–
15,286
13,233
296,672
357,203
532,595
378,916
(1,449)
138,814
516,281
16,314
532,595
5,520
4,407
14,563
12,254
200,623
375,614
513,068
378,916
(2,557)
119,980
496,339
16,729
513,068
62
63
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Consolidated Statement of Changes in Equity
For the year ended 30 June 2021
Consolidated Statement of Cash Flows
For the year ended 30 June 2021
Contributed
equity
$’000
Reserves
$’000
Retained
profits
$’000
Notes
Total
$’000
Non-
controlling
interest
$’000
Total
equity
$’000
378,916
(5,051)
168,722
542,587
17,364
559,951
–
–
–
–
–
–
18
18,25
19
1,842
1,842
(647)
1,299
–
(30,056)
(30,056)
(635)
(30,691)
–
1,842
–
1,842
(30,056)
(28,214)
(635)
(28,849)
–
–
(647)
1,299
–
(16,916)
(16,916)
–
–
–
(647)
1,299
(16,916)
378,916
(2,557)
121,750
498,109
16,729
514,838
378,916
(2,557)
121,750
498,109
16,729
514,838
Balance at 1 July 2019
Loss for the year
Other comprehensive income
Total comprehensive income for the year
Vesting of performance rights
Share-based payments
Dividends paid
Balance at 30 June 2020
Balance at 1 July 2020 –
as previously reported
Effect of changing accounting policy
2(e)
–
–
(1,770)
(1,770)
–
(1,770)
Balance at 1 July 2020 – restated
378,916
(2,557)
119,980
496,339
16,729
513,068
Profit for the year
Other comprehensive income
Total comprehensive income for the year
Vesting of performance rights
Share-based payments
Dividends paid
Balance at 30 June 2021
18
18,25
19
–
–
–
–
–
–
–
–
–
(492)
1,600
28,500
28,500
(415)
28,085
–
–
–
–
28,500
28,500
(415)
28,085
–
–
(492)
1,600
(9,666)
–
–
–
(492)
1,600
(9,666)
–
(9,666)
378,916
(1,449)
138,814
516,281
16,314
532,595
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Notes
2021
$’000
2020
$’000
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Payments for purchase of land held for sale
Interest and other finance costs paid
Distributions and dividends received from associates and joint ventures
Interest received
Income tax paid
Net cash inflow/(outflow) from operating activities
20
Cash flows from investing activities
(Payments)/proceeds for property, plant and equipment
Proceeds from capital returns from associates and joint ventures
Loans to associates and joint ventures
Repayment of loans by associates and joint ventures
Net cash inflow from investing activities
Cash flows from financing activities
Dividends paid
Repayment of borrowings
Proceeds from borrowings
Proceeds from issue of Peet notes (net of transaction costs)
Repayment of Peet bonds
Payment of principal portion of lease liabilities
Net cash (outflow)/inflow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
228,219
(149,578)
(47,403)
(22,592)
11,210
321
(5,746)
14,431
(200)
2,262
(5,452)
32,849
29,459
(9,666)
(44,250)
55,000
73,920
(100,000)
(1,607)
(26,603)
17,287
46,838
64,125
191,596
(167,002)
(11,340)
(21,839)
7,962
39
(7,266)
(7,850)
42
1,705
(9,180)
11,016
3,583
(16,916)
(26,275)
62,120
–
–
(1,430)
17,499
13,232
33,606
46,838
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
64
65
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
CONTENTS
BASIS OF REPORTING
1. Reporting entity .......................................................................................................................................................... 67
2. Basis of preparation .................................................................................................................................................... 67
3. How to read the annual report .................................................................................................................................... 70
PERFORMANCE FOR THE YEAR
4. Segment information .................................................................................................................................................. 70
5. Revenue ...................................................................................................................................................................... 73
6. Expenses .................................................................................................................................................................... 74
7. Earnings/(loss) per share ............................................................................................................................................ 75
8. Taxes ........................................................................................................................................................................... 75
OPERATING ASSETS AND LIABILITIES
9.
Inventories .................................................................................................................................................................. 79
10. Investments accounted for using the equity method ................................................................................................ 79
11. Receivables ................................................................................................................................................................. 82
12. Contract assets ........................................................................................................................................................... 82
13. Payables ...................................................................................................................................................................... 83
14. Land vendor liabilities ................................................................................................................................................. 83
15. Provisions ................................................................................................................................................................... 83
16. Interests in joint operations ........................................................................................................................................ 84
CAPITAL MANAGEMENT
17. Borrowings, lease liabilities and derivative financial instruments .............................................................................. 85
18. Contributed equity and reserves ................................................................................................................................ 90
19. Dividends .................................................................................................................................................................... 91
20. Reconciliation of profit/(loss) after income tax to net cash outflow from operating activities .................................. 91
BASIS OF REPORTING
A. PRINCIPLES OF CONSOLIDATION
This section of the financial report sets out the basis of
financial statements of the Group and the entities it
preparation of the consolidated financial statements.
controlled at the end of, or during the year ended 30 June
Where an accounting policy is specific to one note, the
2021. The Group controls an investee if and only if the
policy is described in the note to which it relates.
Group has:
The consolidated financial statements comprise the
1. REPORTING ENTITY
This financial report covers the consolidated financial
statements for the Consolidated Entity consisting of Peet
Limited and its subsidiaries (Group). The Financial Report
is presented in the Australian currency. Peet Limited is a
company limited by shares, incorporated and domiciled
in Australia. Its registered office and principal place of
business is; Level 7, 200 St Georges Terrace, Perth WA
6000. The nature of the operations and principal activities
of the Group are described in the Directors’ Report. Peet
Limited is a for-profit entity.
2. BASIS OF PREPARATION
The Financial Report is a general purpose financial report
which:
• power over the investee (i.e. existing rights that give it
the current ability to direct the relevant activities of the
investee);
• exposure, or rights, to variable returns from
its
involvement with the investee; and
• the ability to use its power over the investee to affect
its returns.
The Group re-assesses whether or not it controls an
investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control.
Consolidation of a subsidiary begins when the Group
obtains control over the subsidiary and ceases when the
Group loses control of the subsidiary. Assets, liabilities,
income and expenses of a subsidiary acquired or disposed
of during the year are included in the statement of
• has been prepared in accordance with Australian
comprehensive income from the date the Group gains
Accounting Standards and Interpretations issued by
control until the date the Group ceases to control the
the Australian Accounting Standards Board and the
subsidiary.
Corporations Act 2001;
• complies with
International Financial Reporting
Standards
(IFRS) as
issued by
the
International
Accounting Standards Board (IASB);
Profit or loss and each component of other comprehensive
income (OCI) are attributed to the equity holders of the
parent of the Group and to the non-controlling interests,
even if this results in the non-controlling interests having a
• has been prepared under the historical cost convention,
deficit balance. All intra-group assets and liabilities, equity,
except for derivative financial instruments and financial
income, expenses and cash flows relating to transactions
21. Fair value measurement ............................................................................................................................................. 92
assets which have been measured at fair value;
between members of the Group are eliminated in full on
OTHER NOTES
22. Remuneration of auditors ........................................................................................................................................... 93
23. Contingencies and commitments .............................................................................................................................. 93
• provides comparative information in respect of the
consolidation.
previous period; and
• is rounded off to the nearest thousand dollars or in
certain cases to the nearest dollar in accordance with
24. Parent entity financial information and subsidiaries ................................................................................................... 93
ASIC Corporations Instrument 2016/191.
25. Share-based payments ............................................................................................................................................... 96
26. Matters subsequent to the end of the financial year ................................................................................................. 98
27. Other accounting policies ........................................................................................................................................... 98
66
67
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
2. BASIS OF PREPARATION continued
C. INVESTMENTS IN JOINT
D. CHANGES IN OWNERSHIP INTERESTS
ACCOUNTING POLICY – SOFTWARE-AS-A-SERVICE
B. ASSOCIATES
ARRANGEMENTS
Associates are all entities over which
the Group
has significant
influence but not control, generally
accompanying a shareholding of between 20% and 50%
of the voting rights. In the case of syndicates, significant
influence can exist with a lower shareholding by virtue of
the Group’s position as project manager. Investments in
associates are accounted for using the equity method of
accounting.
The Group’s share of its associates’ post-acquisition
profits or losses are recognised in the consolidated
statement of profit or loss, and its share of post-acquisition
other comprehensive income is recognised in other
comprehensive income. The cumulative post-acquisition
movements are adjusted against the carrying amount of
the investment. Dividends receivable from associates are
recognised as a reduction in the carrying amount of the
investment.
When the Group’s share of losses in an associate equals
or exceeds its interest in the associate, including any other
unsecured long-term receivables, the Group does not
Joint arrangements are arrangements of which two or more
parties have joint control. Joint control is the contractual
agreed sharing of control which exists only when decisions
about the relevant activities require unanimous consent
of the parties sharing control. Joint arrangements are
classified as either a joint operation or joint venture, based
on the rights and obligations arising from the contractual
obligations between the parties to the arrangement.
To the extent the joint arrangement provides the Group
with rights to the individual assets and obligations arising
from the joint arrangement, the arrangement is classified
as a joint operation and as such, the Group recognises its:
• assets, including its share of any assets held jointly;
• liabilities, including its share of any liabilities incurred
jointly;
• share of revenue from the sale of the output by the
joint operation; and
• expenses, including its share of any expenses incurred
jointly.
recognise further losses, unless it has incurred obligations
To the extent the joint arrangement provides the Group with
or made payments on behalf of the associate.
rights to the net assets of the arrangement, the investment
Unrealised gains on transactions between the Group and
its associates are eliminated to the extent of the Group’s
interest in the associates. Unrealised losses are also
eliminated unless the transaction provides evidence of an
impairment of the asset transferred.
is classified as a joint venture and accounted for using the
equity method. Under the equity method, the cost of the
investment is adjusted by the post-acquisition changes in
the Group’s share of the net assets of the venture.
The Group
treats
transactions with non-controlling
(SAAS) ARRANGEMENTS
interests that do not result in a gain or loss of control as
SaaS arrangements are arrangements in which the Group
transactions with equity owners of the Group. A change
does not currently control the underlying software used
in ownership interest results in an adjustment between
in the arrangement. Where costs incurred to configure or
the carrying amounts of the controlling and non-controlling
customise SaaS arrangements result in the creation of a
interests to reflect their relative interests in the subsidiary.
resource which is identifiable, and where the company has
Any difference between the amount of the adjustment
the power to obtain the future economic benefits flowing
to non-controlling interests and any consideration paid or
from the underlying resource and to restrict the access
received is recognised in a separate reserve within equity
of others to those benefits, such costs are recognised as
attributable to owners of Peet Limited.
E. CHANGES IN ACCOUNTING POLICIES
a separate intangible software asset and amortised over
the useful life of the software on a straight-line basis.
The amortisation is reviewed at least at the end of each
The accounting policies adopted in the preparation of the
reporting period and any changes are treated as changes in
financial report are consistent with those followed in the
accounting estimates. Where costs incurred to configure or
preparation of the Group’s annual financial statements
customise do not result in the recognition of an intangible
for the year ended 30 June 2020, except for changes
software asset, then those costs that provide the Group
arising from the adoption of new and amended accounting
with a distinct service (in addition to the SaaS access) are
standards and interpretations effective as at 1 July 2020.
now recognised as expenses when the supplier provides
In April 2021, the IFRS Interpretations Committee (IFRIC)
published an agenda decision for configuration and
the services. Previously some costs had been capitalised
and amortised over its useful life.
customisation costs incurred relating to a Software as a
Impact of change in accounting policy
Service (SaaS) arrangement. The Group has changed
The change in policy has been retrospectively applied and
its accounting policy in relation to configuration and
comparative financial information in the balance sheet
customisation costs
incurred
in
implementing SaaS
has been restated. The net impact being a write-off of
arrangements. The nature and effect of the changes as a
$1.8 million against the comparative period’s opening
result of changing this policy is described below.
retained earnings. The impact on the current period and
Several other amendments and interpretations apply for
the first time on 1 July 2020, but do not have a material
impact on the Group. The Group has not early adopted
any standard, interpretation or amendment that has been
issued but is not yet effective.
the prior period profit/(loss) is insignificant.
68
69
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
3. HOW TO READ THE FINANCIAL REPORT
PERFORMANCE FOR THE YEAR
The notes to the financial statements are set out in four
specific sections:
This section focuses on the results and performance of the
• Performance for the year
• Operating assets and liabilities
• Capital management
• Other notes
Where an accounting policy is specific to one note, the
policy is described in the note to which it relates.
Group.
4. SEGMENT INFORMATION
Operating segments are reported in a manner that is
consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision
maker, who is responsible for allocating resources and
assessing performance of the operating segments, has
Key estimates are described in the following notes:
been identified as the executive management group.
• Note 5 – constraints on project management & selling
The executive management group assesses
the
fees and estimates on percentage completion
performance of the operating segments based on multiple
• Note 8 – deferred tax assets
• Note 9 – net realisable value
• Note 11 – ECL allowance
measures including earnings before interest (including
interest and finance charges amortised through cost of
sales), tax, depreciation and amortisation (“EBITDA”),
earnings before interest (including interest and finance
• Note 21 – fair value estimation
charges amortised through cost of sales) and tax (“EBIT”)
Financial risks and its management are detailed in the
and profit after tax.
respective notes it pertains to. The Group’s activities
The share of profits from associates and joint ventures is
expose it to financial risks including (note 17):
included as segment revenue as it is treated as revenue for
• liquidity risk
• credit risk; and
• interest rate risk.
Related party transactions are disclosed within the notes
they relate to. Transactions which occur between the
Group and significant controlled entities are classified as
related party transactions. Significant controlled entities
are interests held in associates and joint ventures,
which are set out in note 10. Details relating to the key
management personnel, including remuneration paid, are
set out in note 6.
internal reporting purposes.
The Group operates only in Australia.
The executive management group considers the business
to have the following reportable business segments:
FUNDS MANAGEMENT
Peet enters into asset and funds management agreements
with external capital providers. Peet and/or the external
capital provider commit equity
funds
towards
the
acquisition of land and this is generally supplemented with
debt funds either at the time of acquisition or during the
development phase of a project.
The Group derives fees from underwriting, capital raising
and asset identification services. Ongoing project related
fees (mainly project management and selling fees as well
as performance fees) are then derived by the Group for the
duration of a particular project.
COMPANY-OWNED PROJECTS
The Group acquires parcels of land in Australia, primarily for
residential development purposes. Certain land holdings
will also produce non-residential blocks of land.
JOINT ARRANGEMENTS
Joint arrangements are entered into with government,
statutory authorities and private landowners. The form of
these arrangements can vary from project to project but
generally involves Peet undertaking the development of
land on behalf of the landowner or in conjunction with the
co-owner. The Group is typically entitled to ongoing fees
for management of the development project and also a
share of the profits.
INTER-SEGMENT TRANSFERS
AND OTHER UNALLOCATED
Segment revenue, expenses and results include transfers
between segments. Such transfers are based on an arm’s
length basis and are eliminated on consolidation.
Certain property syndicates are consolidated where
the Group is considered to have control. These entities
however, continue to be managed and reported to
the executive management group as part of the funds
management business segment. Adjustments are included
in “Inter-segment transfers and other unallocated” to
reconcile reportable business segment information to the
Group’s consolidated statement of profit or loss.
70
71
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
4. SEGMENT INFORMATION continued
5. REVENUE
SALE OF LAND AND BUILT FORM
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Revenue from contracts with
customers
– Sales of land and built form
– Project management and
selling services
Other income
2021
$’000
2020
$’000
Revenue from the sale of land and built form is recognised
on settlement of the sale. This represents the point when
control (title) has passed to the customer.
162,490
50,848
6,929
220,267
151,506
33,245
PROJECT MANAGEMENT
Project management represents a single performance
obligation that is satisfied over time for the oversight
3,531
and management of the development. The consideration
188,282
receivable under
the contract allocated
to project
management is variable and is measured using an expected
value approach subject to a constraint. The transaction
price is based on the relative standalone selling price.
Revenue is recognised using an output method based on
development milestones reached. Payment is received on
settlement.
SELLING SERVICES
This service represents a performance obligation to
facilitate the sale of an individual lot which is satisfied over
the short period of time relating to the procedural steps
of finalising the sale of the property to a purchaser. The
consideration receivable under the contract allocated to
selling services is considered to be variable consideration
and is measured on a portfolio basis using an expected
value approach subject to a constraint. The transaction
price is based on the relative standalone selling price of the
service. Payment is received on settlement.
RECOGNITION AND MEASUREMENT
The main streams of revenue recognised by the Group
relate to the sale of land and built form, and the provision
of management and selling services. Revenue from
contracts with customers is recognised when or as the
Group transfers control of the goods and services to a
customer at an amount that reflects the consideration to
which the Group is expected to be entitled in exchange for
those goods and services. Revenue is recognised when or
as each performance obligation is satisfied at the amount
of the transaction price allocated to that performance
obligation. If the consideration in the contract includes
a variable amount, the Group estimates the amount of
the consideration to which it is entitled in exchange for
transferring the goods and services to the customer. The
variable consideration is estimated at contract inception
and constrained until it is highly probable that a significant
revenue reversal of the amount of the cumulative revenue
recognised will not occur when the associated uncertainty
with the variable consideration is subsequently resolved.
When a performance obligation is satisfied by transferring
a promised good or service to the customer before the
customer pays consideration or before payment is due,
the Group presents the revenue as a contract asset,
unless the Group’s rights to the amount of consideration
are unconditional, in which case the Group recognises a
receivable.
The Group recognises contract fulfilment costs as an asset
only if the costs relate directly to a contract, the costs
generate or enhance resources of the Group that will be
used to satisfy future performance obligations and the
costs are expected to be recovered. If not capitalised,
contract fulfilment costs are expensed as incurred.
.
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72
73
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
5. REVENUE continued
6. EXPENSES
Related party expenses
8. TAXES
KEY ESTIMATES
Constraints on project management & selling fees
An analysis of sales fall over rates and minimum
selling prices is performed for all business
segments by location. This analysis, on a portfolio
basis, is used to determine an appropriate
constraint for revenue recognised against project
management and selling fees.
Percentage completion
An analysis of development milestones is
performed to determine an appropriate percentage
of completion for completed lots.
Revenue from related parties included above:
2021
$’000
2020
$’000
Revenue from related parties ¹
Associates
Project management and selling services
32,498
Syndicate administration services
1,429
19,843
1,441
Joint arrangements
Project management and selling services
4,967
38,894
3,815
25,099
1. Refer to note 3 for information on related party transactions.
Profit/(Loss) before income tax
includes the following specific
expenses:
Land and development costs
Amortised interest and finance expense
2021
$’000
2020
$’000
121,770
9,480
94,707
6,486
Total land and development cost
131,250
101,193
Divestment and related provisions 1
–
61,027
Depreciation 2
– Right-of-use assets
– Property, plant and equipment
Amortisation
Total depreciation and amortisation
Employee benefits expense 3
Project management, selling and other
operating costs
Other expenses
Total other expenses
Total expenses
Finance costs
Interest and finance charges
– Bank borrowings
– Lease liabilities
Hedging losses reclassified
to profit or loss
Interest on corporate bonds
Amount capitalised
1,341
849
806
2,996
25,482
15,909
13,083
54,474
1,341
933
1,096
3,370
30,865
16,551
17,247
64,663
188,720
230,253
5,418
432
–
5,951
534
2,424
15,700
16,219
(16,208)
(17,700)
5,342
7,428
1. This amount includes provisions of write-downs to a number of divesting projects (refer to note 9 for
the inventory component) and provisions of related costs.
2. Refer to note 27 (b), (c) and (d) for accounting policies.
3. Refer to note 27 (e) for accounting policies.
KMP remuneration 1
Short-term employee benefits
Post-employment benefits
Share-based payments
2021
$’000
4,126
157
1,107
5,390
2020
$’000
2,769
154
896
3,819
A. INCOME TAX EXPENSE
Major components of tax expense
Current income tax expense
Current tax
Adjustments for prior periods
1. Refer to note 3 for information about related party transactions.
LAND AND DEVELOPMENT COSTS
Land and development costs represent the portion of the
land and development costs associated with the lots sold
Deferred income tax expense
Deferred tax
Adjustments for prior periods
during the year (cost of sales).
BORROWING COSTS
Borrowing costs incurred for the construction of any
qualifying asset are capitalised during the period of time
that is required to complete and prepare the asset for its
intended use or sale. Other borrowing costs are expensed
in the period they are incurred. The capitalisation rate used
to determine the amount of finance costs to be capitalised
is the weighted average interest rate applicable to the
Group’s outstanding borrowings during the year (refer note
17).
7. EARNINGS/(LOSS) PER SHARE
Deferred income tax expense included
in income tax expense comprises:
Increase in deferred tax assets
Increase/(Decrease) in deferred tax
liabilities
2021
$’000
2020
$’000
10,031
1,399
11,430
2,135
(1,412)
723
2,996
(3,958)
(962)
(13,717)
4,031
(9,686)
12,153
(10,648)
2021
$’000
2020
$’000
(1,262)
1,985
(2,313)
(7,373)
723
(9,686)
2021
$’000
2020
$’000
2021
28,500
2020
(30,056)
Tax reconciliation
Profit/(Loss) before income tax
Tax at Australian tax rate of 30%
40,238
12,071
(41,339)
(12,402)
Profit/(loss) attributable to the
ordinary equity holders of the
Company ($’000)
Weighted average number of
ordinary shares used as the
denominator in calculating basic
earnings per share
Basic and diluted earnings/(loss)
per share (cents)
483,300,489
483,300,489
Tax effect of amounts which are not
assessable or deductible:
Share of net profit of associates
5.90
(6.19)
Employee benefits
Franking credits
There are 1,200,000 options excluded from the calculation
Deferred tax assets not recognised
of diluted earnings per share as they are anti-dilutive. They
Sundry items
could potentially dilute basic earnings per share in the
Over provision in prior periods
future.
Refer note 25 for the number of Performance Rights (PRs)
outstanding at 30 June 2021. These PRs are contingently
issuable shares and accordingly not included in diluted
earnings per share.
116
332
(1,492)
371
768
(13)
452
195
(384)
1,237
181
73
12,153
(10,648)
74
75
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
8. TAXES continued
A. INCOME TAX EXPENSE continued
RECOGNITION AND MEASUREMENT
Current taxes
Deferred tax assets are recognised for deductible
temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to
utilise those temporary differences and losses.
The income tax expense for the period is the tax payable
Deferred tax assets and liabilities are offset when there is
on the current period’s taxable income based on the
a legally enforceable right to offset current tax assets and
applicable income tax rate, adjusted by changes in
liabilities and when the deferred tax balances relate to the
deferred tax assets and liabilities attributable to temporary
same taxation authority.
differences between the tax bases of assets and liabilities
and their carrying amounts in the financial statements.
Current tax assets and tax liabilities are offset where the
entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and
settle the liability simultaneously.
Deferred taxes
Deferred tax assets and liabilities are recognised for
temporary differences at the tax rates expected to
apply, when the assets are recovered or liabilities are
settled, based on those tax rates which are enacted or
substantively enacted for each jurisdiction by the end of
the reporting period. The relevant tax rates are applied
to the amounts of deductible and taxable temporary
differences to measure the deferred tax asset or liability.
An exception is made for certain temporary differences
arising from the initial recognition of an asset or a liability.
No deferred tax asset or liability is recognised in relation to
these temporary differences if they arise in a transaction
other than a business combination that at the time of the
transaction did not affect either accounting profit or taxable
profit or loss.
Current and deferred tax is recognised in profit or loss,
except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In this
case, the tax is also recognised in other comprehensive
income or directly in equity, respectively.
KEY ESTIMATES
Deferred tax assets
The Group has recognised deferred tax assets
relating to carried forward tax losses to the extent
there are sufficient taxable temporary differences
(deferred tax liabilities) relating to the same taxation
authority against which the unused tax losses can
be utilised. However, utilisation of the tax losses
also depends on the ability of the entity, to satisfy
certain tests at the time the losses are recouped.
B. DEFERRED TAX ASSETS
Inventory
$’000
Cash flow
hedges
$’000
Receivables
$’000
Tax losses
$’000
3,922
1,659
9,338
(195)
–
457
(794)
2,732
–
517
546
–
Property,
plant and
equipment
(including
leases)
$’000
1,963
1,085
–
At 1 July 2019
Credited/(charged):
– to profit or loss
– to other comprehensive
income
Total deferred tax assets
3,727
1,322
12,070
1,063
3,048
Set off against deferred tax
liabilities pursuant to set off
provisions
At 30 June 2020
At 1 July 2020
Effect of changing accounting
policy
Balance at 1 July 2020
(restated)
Credited/(charged):
– to profit or loss
Total deferred tax assets
Set off against deferred tax
liabilities pursuant to set off
provisions
At 30 June 2021
3,727
–
1,322
–
12,070
–
1,063
–
3,048
758
3,727
1,322
12,070
1,063
3,806
189
3,916
(863)
459
1,461
13,531
346
1,409
189
3,995
Other
$’000
2,614
(2,312)
–
302
302
–
302
(60)
242
Total
$’000
20,013
2,313
(794)
21,532
(21,532)
–
21,532
758
22,290
1,262
23,552
(23,552)
–
76
77
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
8. TAXES continued
C. DEFERRED TAX LIABILITIES
Movements
At 1 July 2019
Charged/(credited):
– to profit or loss
Total deferred tax liabilities
Set off against deferred tax liabilities
pursuant to set off provisions
At 30 June 2020
At 1 July 2020
Charged/(credited):
– to profit or loss
Total deferred tax liabilities
Set off against deferred tax liabilities
pursuant to set off provisions
At 30 June 2021
Finance
charges
$’000
21,923
Accrued
income
$’000
Inventory
$’000
2,541
14,818
3,902
25,825
1,648
4,189
(13,355)
1,463
Share of joint
arrangements
$’000
4,789
432
5,221
25,825
4,189
1,463
5,221
2,289
28,114
405
4,594
1,048
2,511
(1,757)
3,464
Other
$’000
155
–
155
155
–
155
Total
$’000
44,226
(7,373)
36,853
(22,290)
14,563
36,853
1,985
38,838
(23,552)
15,286
OPERATING ASSETS
AND LIABILITIES
This section shows the assets used to generate the Group’s
trading performance and the liabilities incurred as a result.
Liabilities relating to the Group’s financing activities are
addressed in the capital management section.
9. INVENTORIES
Cost of acquisition
Capitalised development costs
Capitalised finance costs
Total inventory at cost
Provision for write-downs
to net realisable value 1
2021
$’000
309,269
144,306
87,947
541,522
(51,597)
2020
$’000
287,301
159,250
88,375
534,926
(56,467)
Total inventory
489,925
478,459
Current
Non-current
Total inventory
114,898
375,027
489,925
87,087
391,372
478,459
1. The write-downs are from several non-core projects that are to be divested. The estimated net
realisable values used to calculate the write-down provisions are based on the latest valuations and
management’s assessment of the market for each project.
RECOGNITION AND MEASUREMENT
KEY ESTIMATES
Net realisable value
The Group is required to carry inventory at lower of
cost and net realisable value. Net realisable value is
the estimated selling price in the ordinary course of
business, less estimated costs of completion and
the estimated costs necessary to make the sale.
Estimates of net realisable value are based on the
most reliable evidence available at the time the
estimates are made, of the amount the inventories
are expected to realise and the estimate of costs
to complete. The key assumptions require the
use of management judgement and are reviewed
annually.
In June 2021,
IFRIC published an agenda
decision in relation to the accounting treatment
when determining net realisable value (NRV) of
inventories, in particular what costs are necessary
to sell inventories under IAS 2 Inventories. Based
on the analysis performed, the Group expects an
immaterial impact from the adoption of the IFRIC
agenda decision.
10. INVESTMENTS ACCOUNTED FOR
USING THE EQUITY METHOD
Land held for development and resale is stated at the
Investments in associates and joint ventures are accounted
lower of cost and net realisable value. Cost includes the
for using the equity method of accounting.
cost of acquisition, development and borrowing costs
during development. When development is completed,
borrowing costs and other holding charges are expensed
as incurred.
Land is initially classified as non-current. It is subsequently
reclassified to current if the development/subdivided lots
are expected to be sold within the next 12 months.
A. MOVEMENTS IN CARRYING AMOUNTS
OF INVESTMENTS IN ASSOCIATES AND
JOINT VENTURES
2021
$’000
2020
$’000
Carrying amount at 1 July
232,061
233,668
Dividends
Capital returns
Share of profit after income tax
(11,210)
(2,262)
14,033
(7,962)
(1,705)
8,060
Carrying amount at 30 June
232,622
232,061
78
79
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD continued
The Group assesses, at each balance date, the carrying value of investments in associates and joint ventures to ensure
the assets are not impaired.
B. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (JVS) INCLUDING SUMMARISED
FINANCIAL INFORMATION
The associates and joint ventures finance their operations through unitholder/shareholder contributions and also through
external banking facilities. The Group also provides a loan facility to some of these entities which is disclosed in note 11.
For Peet Alkimos Pty Ltd, the Group has agreed to defer payment of project management and selling fees to a future date.
The Group has no further contractual obligations to provide ongoing financial support.
C. ADDITIONAL SUMMARISED INFORMATION IN RELATION TO AMOUNTS INCLUDED
IN ASSETS, LIABILITIES AND PROFIT/(LOSS) OF JOINT VENTURES
s
t
e
s
s
a
t
n
e
r
r
u
c
-
n
o
N
s
e
i
t
i
l
i
b
a
i
l
t
n
e
r
r
u
C
s
e
i
t
i
l
i
b
a
i
l
t
n
e
r
r
u
c
-
n
o
N
s
t
e
s
s
a
t
e
N
s
t
e
s
s
a
t
n
e
r
r
u
C
p
i
h
s
r
e
n
w
O
n
i
t
s
e
r
e
t
n
i
l
f
o
e
u
a
v
g
n
i
y
r
r
a
C
e
r
u
t
n
e
v
t
n
i
o
j
i
r
o
e
t
a
c
o
s
s
a
e
u
n
e
v
e
R
x
a
t
r
e
t
f
a
)
s
s
o
l
(
/
t
fi
o
r
p
t
e
N
)
s
s
o
l
(
/
t
fi
o
r
p
f
o
e
r
a
h
S
As at 30 June 2021
% $’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Associates
Peet Alkimos Pty Limited, WA
33
8,065
390,154
112,227
35,759
250,233
69,125
34,493
(4,028)
(1,344)
Peet Caboolture Syndicate Limited, QLD 20
Peet Werribee Land Syndicate, VIC
Joint Ventures*
Peet Flagstone City Pty Limited, QLD
Googong Township Unit Trust, NSW
Peet Golden Bay Pty Limited, WA
Peet Mt Barker Pty Limited, SA
Peet No.1895 Pty Limited, VIC
Peet Brabham Pty Ltd, WA
Other associates and JVs
Total
17
50
50
50
50
50
50
As at 30 June 2020
Associates
8,191
2,175
35,274
27,006
1,819
3,520
20,717
20,929
8,002
17,659
6,023
3,030
31,112
24,758
3,014
3,586
4,225
181,174
54,454
5,317
125,628
62,814
30,451
4,963
6,029
153,700
4,756
33,000
121,973
60,987
54,024
13,896
3,397
1,740
21,202
21,506
990
4,419
–
23,609
11,804
11,373
526
18,301
9,150
17,426
2,759
90,256
21,767
54,181
17,067
8,584
32,892
10,943
39,873
49,468
1,068
280
5,402
140
965
232,622
900
1,815
2,152
942
603
615
2,482
6,948
450
908
1,078
471
1,822
14,033
Peet Alkimos Pty Limited, WA
33
7,587
405,389
123,857
34,675
254,444
70,479
9,359
(3,633)
(1,212)
As at 30 June 2021
Peet Flagstone City Pty Limited
Googong Township Unit Trust
Peet Golden Bay Pty Limited
Peet Mt Barker Pty Limited
Peet No. 1895 Pty Limited
Peet Brabham Pty Limited
As at 30 June 2020
Peet Flagstone City Pty Limited
Googong Township Unit Trust
Peet Golden Bay Pty Limited
Peet Mt Barker Pty Limited
Peet No. 1895 Pty Limited
Peet Brabham Pty Limited
1. Excluding trade and other payables and provisions
Cash and cash
equivalents
$’000
Current
financial
liabilities 1
$’000
Non-current
financial
liabilities 1
$’000
Interest
expense
$’000
Income tax
expense/
(benefit)
$’000
3,625
5,525
4,450
1,614
2,597
407
3,475
9,589
1,647
2,191
2,014
475
–
–
–
–
–
–
53,557
–
–
–
–
–
48,757
33,000
–
–
67,328
49,431
–
45,000
–
3,000
77,867
45,150
–
–
–
–
–
26
–
–
–
–
–
–
2,128
8
386
778
922
157
398
(16)
72
102
1,181
–
Peet Caboolture Syndicate Limited, QLD 20
3,331
43,344
631
16,820
29,224
7,701
32,620
1,879
5,385
33,057
5,845
5,672
15,432
19,144
1,154
3,081
231
529
Peet Werribee Land Syndicate, VIC
Joint Ventures*
Peet Flagstone City Pty Limited, QLD
Googong Township Unit Trust, NSW
Peet Golden Bay Pty Limited, WA
Peet Mt Barker Pty Limited, SA
Peet No.1895 Pty Limited, VIC
Peet Brabham Pty Ltd, WA
Other associates and JVs
Total
17
50
50
50
50
50
50
3,771
177,828
56,862
4,063
120,674
60,337
19,358
907
454
35,638
128,554
2,618
45,000
116,573
58,287
43,533
9,684
4,842
1,014
23,789
687
–
24,116
12,058
6,647
2,299
23,213
1,572
3,336
20,604
10,302
11,930
173
360
86
180
2,166
7,805
99,173
37,546
2,343
84,080
14,916
7,473
24,627
2,755
1,380
419
45,840
(908)
(454)
(291)
(440)
(220)
2,062
232,061
1,790
8,060
* Refer to note 10(c) for further breakdown of financial information of joint ventures
80
81
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
11. RECEIVABLES
Related party balances with associates and joint ventures
13. PAYABLES
The below table analyses the maturity of the Group’s land
Current
Trade receivables at amortised cost 1
Other receivables at amortised cost 1
Loans to associates and joint ventures 2
– At amortised cost
– ECL allowance
– At fair value 2
Non-current
Loans to associates and joint ventures 2
– At amortised cost
– ECL allowance
– At fair value 2
Other receivables
Total receivables
2021
$’000
7,728
1,276
12,708
(3,143)
7,356
25,925
17,157
(91)
30,313
5,430
52,809
78,734
2020
$’000
8,224
1,182
7,774
(73)
19,836
36,943
26,848
(2,692)
40,060
5,359
69,575
106,518
included above:
Current
Trade receivables
Loans to associates and joint ventures
– Amortised cost (net of ECL allowance)
– Fair value
Non-current
Loans to associates and joint ventures
– Amortised cost (net of ECL allowance)
– Fair value
Other receivables
Total
2021
$’000
2020
$’000
3,021
2,048
9,565
7,356
7,701
19,836
17,066
30,313
5,430
72,751
24,156
40,060
5,359
99,160
Movements in loans to associates and joint ventures:
1. Trade and other receivables are non-interest bearing and generally have 30-60 day terms. There were
no past due or impaired trade receivables at the end of the year (2020: $Nil).
2. The Group has entered into financing arrangements (including loans and equity contributions in cash)
with certain associates and JVs of the Group on commercial terms. The loans provided to associates
and JVs are unsecured with interest rates based on Bank Bill Swap Bid Rate (BBSY) plus a margin up
to 5%.
Carrying amount at 1 July
Loans advanced
Loan repayments
Other
Refer note 27(a) for accounting policy on financial assets
Carrying amount at 30 June
and note 21 for fair value disclosures.
2021
$’000
91,753
5,452
(32,849)
(56)
64,300
2020
$’000
97,316
9,180
(11,016)
(3,727)
91,753
Current
Trade payables and accruals
Advance from joint operators
Total payables
2021
$’000
2020
$’000
vendor liability obligation:
29,726
4,823
34,549
27,424
6,020
33,444
0 – 1 years
Total contractual cash flows
Carrying amount of liabilities
RECOGNITION AND MEASUREMENT
15. PROVISIONS
These amounts represent liabilities for goods and services
provided to the Group prior to the end of the financial year
which are unpaid. These amounts are unsecured and
usually paid within 30 days of recognition.
Current
Rebates
Trade and other payables are presented as current liabilities
Employee entitlements
unless payment is not due within 12 months from the
reporting date. They are recognised initially at their fair
value and subsequently measured at amortised cost using
the effective interest method.
In some joint arrangement contracts, costs are reimbursed
as incurred during development. As revenue is only
recognised on settlements, reimbursements received
are recognised as advance from joint operators until
Provision for development costs
to complete
Non-current
Employee entitlements
Provision for development costs to
complete
settlement.
Total provisions
2021
$’000
–
–
–
2021
$’000
2,455
3,295
6,980
2020
$’000
6,350
6,350
6,350
2020
$’000
2,524
3,183
8,921
12,730
14,628
158
216
13,075
12,038
13,233
25,963
12,254
26,882
Refer note 21 for fair value disclosures.
Movements in provisions during the financial year are set
out below:
12. CONTRACT ASSETS
14. LAND VENDOR LIABILITIES
KEY ESTIMATES
ECL allowance
ECL allowance is determined on a probability of
Current
default on a loan by loan basis.
Accrued income 1
Non-current
Deferred management fees 2
Total contract assets
2021
$’000
2020
$’000
11,528
8,536
3,726
15,254
4,336
12,872
1. These amounts represent project management and performance fees from associates and other
managed entities. They are recognised for the earned consideration that is conditional under AASB
15. Refer note 5 for revenue related accounting policies.
2. The deferred management fees are receivable from residents in the Lattitude Lakelands retirement
village, who entered into an agreement to pay the fee upon their departure. The fee is based on 3%
of the resale price of the unit for each year of occupation (up to 24%).
Current
Instalments for purchase of
development property
Total land vendor liabilities
2021
$’000
–
–
2020
$’000
6,350
6,350
Carrying amount at 1 July
– Additional provision recognised
– Paid during year
– Expired during the year
2021
$’000
2020
$’000
26,882
33,232
4,488
(3,431)
(1,976)
4,612
(3,852)
(7,110)
Carrying amount at 30 June
25,963
26,882
RECOGNITION AND MEASUREMENT
Where the Group enters into unconditional contracts with
land vendors to purchase properties for future development
that contain deferred payment terms, these borrowings are
initially measured at fair value and subsequently carried at
amortised cost. The unwinding of the discount applied to
the acquisition price is included in finance costs. Generally,
the land vendor holds the title over the property until
settlement has occurred.
Refer note 21 for fair value disclosures.
82
83
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
15. PROVISIONS continued
RECOGNITION AND MEASUREMENT
Provisions are recognised when the Group has a present
legal or constructive obligation as a result of past events;
it is probable that an outflow of resources will be required
Liabilities for wages and salaries, including non-monetary
benefits and accumulating sick leave expected to be
settled within 12 months of the balance date are measured
at the amounts expected to be paid when the liabilities are
settled.
to settle the obligation; and the amount has been reliably
DEVELOPMENT COSTS TO COMPLETE
estimated. Provisions are not recognised for future
operating losses.
Provisions for development costs not yet incurred for lots
settled are recognised at each reporting date based on the
Provisions are measured at
the present value of
estimated costs to complete.
management’s best estimate of the expenditure required
to settle the present obligation at the balance date. The
16. INTERESTS IN JOINT OPERATIONS
discount rate used to determine the present value reflects
Details of aggregate share of assets, liabilities, revenue,
current market assessments of the time value of money
expenses and results of joint operations
and the risks specific to the liability. The increase in the
provision due to the passage of time is recognised as
Group’s share of:
Total
assets
$’000
Total
liabilities
$’000
Revenue
$’000
Expenses
$’000
7,966
3,526
5,341
3,613
4,197
2,126
9,360
7,742
22,391
4,675
10,748
9,374
12,532
3,128
7,708
5,756
9,134
5,181
6,567
5,674
9,882
6,482
2,270
1,827
25,023
6,180
7,952
6,455
As at 30 June 2021
The Village at
Wellard, WA
Lightsview
Joint Venture, SA
Redbank Plains
Joint Venture, QLD
As at 30 June 2020
The Village at
Wellard, WA
Lightsview
Joint Venture, SA
The Heights
Durack, NT
Redbank Plains
Joint Venture, QLD
interest expense.
REBATES
The Group may be required under the terms of certain sale
contracts to provide rebates for expenditures undertaken
by land holders in respect of developments. These
expenditures relate to landscaping and fencing and are
generally payable where the land purchaser completes
the construction of their dwelling within a specified
period of time. This period is generally 12 to 18 months
from the date of settlement. A liability is recorded for
rebates at settlement and is measured at the amount of
consideration receivable under the sales contract for which
the Group does not expect to be entitled. The provision is
updated at the end of each reporting period for changes in
circumstances.
EMPLOYEE ENTITLEMENTS
The liability for long service leave and annual leave
is recognised in the provision for employee benefits
and measured as the present value of expected future
payments to be made in respect of services provided by
employees up to the balance date. Consideration is given
to expected future wage and salary levels, experience of
the employee, departures and periods of service. Expected
future payments are discounted using market yields at the
reporting date on high quality corporate bonds with terms
to maturity and currency that match, as closely as possible,
the estimated future cash outflows.
CAPITAL MANAGEMENT
17. BORROWINGS, LEASE LIABILITIES AND
DERIVATIVE FINANCIAL INSTRUMENTS
This section outlines how the Group manages its capital
NET DEBT
and related financing costs.
For the purpose of the Group’s capital management,
capital includes:
• issued capital;
• debt facilities; and
• other equity reserves attributable to the equity holders
of the parent.
The Group’s objectives when managing capital are to:
• safeguard its ability to continue as a going concern;
• continue to provide returns to shareholders and benefits
for other stakeholders;
• maintain an efficient capital structure to reduce the cost
of capital; and
• ensure all covenants are complied with.
In order to maintain or adjust the capital structure, the Group
Borrowings – Current
Borrowings – Non-current
Total borrowings*
Cash and cash equivalents
Net debt
2021
$’000
3,555
264,430
267,985
2020
$’000
118,275
163,879
282,154
(64,125)
(46,838)
203,860
235,316
* Excludes vendor financing. Refer note 14 for vendor financing on deferred payment terms.
RECOGNITION AND MEASUREMENT
Borrowings are Initially Recognised At Fair Value, Net Of
Transaction Costs Incurred. Borrowings Are Subsequently
Measured At Amortised Cost. Any Difference Between
The Proceeds (Net Of Transaction Costs) And The
Redemption Amount Is Recognised In The Statement Of
Profit Or Loss Over The Period Of The Borrowings Using
The Effective Interest Method.
may adjust the amount of dividends paid to shareholders,
For The Purpose Of Presentation In The Statement Of
return capital to shareholders, issue new shares or sell
Cash Flows, Cash And Cash Equivalents Includes Cash
assets to reduce debt.
The Group monitors capital on the basis of the gearing ratio.
This ratio is calculated as total interest-bearing liabilities
(including deferred payment obligations) less cash, divided
by total assets adjusted for market value, net of cash and
cash equivalents less intangible assets. The market value
On Hand, Deposits Held At Call With Financial Institutions,
Other Short-Term, Highly Liquid Investments With Original
Maturities Of Three Months Or Less That Are Readily
Convertible To Known Amounts Of Cash And Which Are
Subject To An Insignificant Risk Of Changes In Value, And
Bank Overdrafts.
is based on the latest independent mortgage valuations,
Refer Note 21 For Fair Value Disclosures.
adjusted for settlements, development costs and titled
stock between the date of valuation and 30 June 2021. At
30 June 2021, the bank covenant gearing ratio was 25.7%
(2020: 29.7%).
84
85
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
17. BORROWINGS, LEASE LIABILITIES AND
DERIVATIVE FINANCIAL INSTRUMENTS
continued
DEBT FACILITIES
The following provides details of the loans and borrowings
utilised as at 30 June 2021:
Facility
amount
$’000
202,000
Utilised
amount 1
$’000
70,330
Face
value
$’000
Carrying
amount 2
$’000
Effective
interest
rate
%
5.5
Effective
interest
rate
%
50,000
75,000
75,000
49,726
73,996
73,933
5.1
7.2
5.2
Bank loans – note a
Peet bonds and notes –
note b
Series 2, Tranche 1
Peet notes 2019
Peet notes 2021
B. PEET BONDS AND NOTES
Peet bonds Series 1, Tranche 1
On 7 June 2016, Peet issued 1,000,000 Peet bonds with a
face value of $100 per bond with a maturity date of 7 June
2021. These bonds are unsecured and interest-bearing at a
fixed rate of interest of 7.5%. On 7 June 2021, Peet repaid
the bonds.
Peet bonds Series 2, Tranche 1
On 5 July 2017, Peet issued 500,000 Bonds at a face value
of $100 per bond with a maturity date of 5 October 2022.
These bonds are unsecured and carry a floating interest
rate of BBSW+ 4.65% margin.
Peet Notes 2019
On 4 April 2019, Peet issued 75,000 notes to eligible
professional and sophisticated investors at a face value
of $1,000 per bond with a maturity date of 7 June 2024.
These bonds are unsecured and carry a fixed interest rate
of 6.75%.
Peet Notes 2021
On 4 June 2021, Peet issued 75,000 notes to eligible
200,000
197,655
professional and sophisticated investors at a face value
1. Excludes bank guarantees. Refer note 23 for bank guarantees information.
2. Net of transaction and finance costs.
A. BANK LOANS
The bank facilities are secured by a first registered fixed
and floating charge over the assets and undertakings of the
Group with a carrying amount of $655 million (2020: $655
million). Under these facilities the Group is required to meet
bank covenants relating to interest cover, gearing ratio, real
property ratio and minimum shareholders’ equity. All bank
covenants have been waived during the reporting period
up to 30 June 2021. All bank covenants are compliant as
at 30 June 2021.
In May 2021, the Group’s main bank facility of $150 million
was increased to $175 million and extended to 1 October
2024. The table below analyses the maturity of the Group’s
of $1,000 per bond with a maturity date of 30 September
2026. These bonds are unsecured and carry a floating
interest rate of BBSW+4.85% margin.
The bonds and notes are presented in the balance sheet
as follows:
Face value of bonds and notes issued
200,000
225,000
2021
$’000
2020
$’000
Transaction costs
Cumulative interest expense
Cumulative coupon payable
(3,499)
(4,669)
196,501
220,331
24,392
48,519
(23,238)
(46,037)
1,154
2,482
Total bonds and notes liability
197,655
222,813
bank loans based on the remaining period at reporting date
The bonds and notes are repayable as follows:
to the contractual maturity date:
0 – 1 years
1 – 2 years
2 – 5 years
Total contractual cash flows
Carrying amount of liabilities
2021
$’000
7,433
20,171
54,018
81,622
70,330
2020
$’000
21,583
8,150
35,577
65,310
59,341
0 – 1 years
1 – 2 years
2 – 5 years
Total contractual cash flows
Carrying amount of liabilities
2021
$’000
11,069
59,349
2020
$’000
115,019
7,807
166,682
135,549
237,100
258,375
197,655
222,813
C. LEASE LIABILITIES
D. DERIVATIVE FINANCIAL INSTRUMENTS
Current
Office space leases
Non-current
Office space leases
Total lease liabilities
2021
$’000
2020
$’000
Current
2021
$’000
2020
$’000
1,797
1,607
Interest rate swap contracts
1,529
–
Non-current
3,723
5,520
5,520
7,127
Interest rate swap contracts
–
Total derivative financial instruments
1,529
4,407
4,407
During the year, total cash outflow for these leases is
The below table analyses the maturity of the Group’s
$2.0 million (2020: $2.0 million).
interest rate swaps on a net settled basis:
The below table analyses the maturity of the Group’s lease
liabilities based on the remaining period at reporting date to
the contractual maturity date:
0 – 1 years
1 – 2 years
2 – 5 years
> 5 years
Total contractual cash flows
Carrying amount of liabilities
2021
$’000
2,115
2,149
1,850
–
6,114
5,520
2020
$’000
2,039
2,115
3,898
101
8,153
7,127
0 – 1 years
1 – 2 years
Total contractual cash flows
Carrying amount of liabilities
2021
$’000
1,529
–
1,529
1,529
2020
$’000
–
4,407
4,407
4,407
E. CHANGES IN LIABILITIES ARISING FROM
FINANCING ACTIVITIES
Borrowings
$’000
282,154
(15,330)
–
1,161
Lease
liabilities
$’000
7,127
(1,607)
–
–
1 July 2020
Cash flows
Changes in fair value
Others
30 June 2021
267,985
5,520
Derivative
financial
instruments
$’000
4,407
–
(2,878)
–
1,529
86
87
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
17. BORROWINGS, LEASE LIABILITIES AND
DERIVATIVE FINANCIAL INSTRUMENTS
continued
During the year, the fixed interest rate on the interest rate
swap contracts was 3.11% (2020: 3.11%). The variable
base rates are between 0.01% and 0.09% (2020: 0.09%
INTEREST RATE SWAP CONTRACTS
RECOGNITION AND MEASUREMENT
Derivatives are initially recognised at fair value on the date
a derivative contract is entered into and are subsequently
and 1.22%).
The contracts require settlement of net interest receivable
or payable monthly. The settlement dates coincide with the
dates on which interest is payable on the underlying debt.
measured at fair value at each reporting period. The
The notional principal amounts and periods of expiry of the
accounting for subsequent changes in fair value depends
interest rate swap contracts were as follows:
on whether the derivative is designated as a hedging
instrument, and if so, the nature of the item being hedged.
The Group documents at the inception of the hedging
transaction the relationship between hedging instruments
0 – 1 years
1 – 2 years
and hedged items, as well as its risk management objective
and strategy for undertaking various hedge transactions.
2021
$’000
100,000
2020
$’000
–
–
100,000
100,000
100,000
The Group also documents how it will assess hedge
The full fair value of interest rate swap is classified as a
effectiveness (including the analysis of sources of hedge
non-current asset or liability when the remaining maturity
ineffectiveness). Hedge accounting is only applied where
is more than 12 months, otherwise current.
there is an economic relationship between the hedged
item and hedging instrument.
LIQUIDITY RISK
The gain or loss from remeasuring the hedging instruments
at fair value is recognised in other comprehensive income
Liquidity risk includes the risk that the Group, as a result of
their operations:
and deferred in equity in the hedge reserve, to the extent
• will not have sufficient funds to settle a transaction on
that the hedge is effective. It is reclassified into profit or
due date;
loss when the hedged interest expense is recognised. The
ineffective portion is recognised in the statement of profit
or loss immediately.
When a hedging
instrument expires or
is sold or
terminated, or when a hedge no longer meets the criteria
for hedge accounting, any cumulative gain or loss existing
in equity at that time remains in equity and is recognised
when the forecast transaction is ultimately recognised in
the statement of profit or loss. When a forecast transaction
is no longer expected to occur, the cumulative gain or loss
that was reported in equity is immediately reclassified to
the statement of profit or loss.
• will be forced to sell financial assets at a value which is
less than what they are worth; or
• may be unable to settle or recover a financial asset at all.
Prudent liquidity risk management implies maintaining
sufficient cash, the availability of funding through an
adequate amount of committed credit facilities to meet
obligations when due, and the ability to close-out market
positions. Due to the dynamic nature of the underlying
business, the Group aims at maintaining flexibility in
funding by keeping committed credit lines available, and
regularly updating and reviewing its cash flow forecasts to
assist in managing its liquidity. The maturity analysis of the
The Group’s policy is to protect part of the loans from
Group’s derivative and non-derivative financial instruments
exposure to increasing interest rates. Accordingly, the
can be located in their respective notes.
Group has entered into interest rate swap contracts under
which it is obliged to receive interest at variable rates
and to pay interest at fixed rates. In FY20, the Group has
determined the interest rate swap contracts no longer
meet the Group’s risk management objective. As a result,
the Group has discontinued hedge accounting.
The Group has unused borrowing facilities which can
further reduce liquidity risk (refer to note 17 for analysis of
maturities on borrowing facilities).
CREDIT RISK
INTEREST RATE SENSITIVITY
The cash component of financial assets is considered
The sensitivity analysis below has been determined
to have low credit risk as the counterparties are banks
based on the exposure to interest rates in existence at
with high credit ratings assigned by international credit-
balance date, and the stipulated change taking place
rating agencies. An expected credit loss provision of
at the beginning of the financial year and held constant
$3.2 million (2020: $2.8 million) has been recognised for
throughout the reporting period. A 50 basis point increase
loans measured at amortised cost of $29.9 million (2020:
or decrease used in the interest rate sensitivity analysis
$34.6 million) (refer to note 11 and 27).
was determined based on the level of debt that was
INTEREST RATE RISK
renewed and forecasters’ economic expectations and
represents management’s assessment of the possible
The Group’s main interest rate risk arises from cash, loans
change in interest rates.
to associates and joint ventures measured at fair value and
long-term borrowings.
At 30 June 2021, the Group had the following mix of
financial assets and liabilities exposed to variable interest
Borrowings issued at variable rates expose the Group to
rates:
cash flow interest rate risk.
The Group manages its interest rate risk by both variable
and fixed rate debt instruments.
The Group’s fixed rate borrowings and certain loans to
associates and joint ventures are carried at amortised cost.
They are therefore not subject to interest rate risk.
Financial assets
Cash and cash equivalents (floating)
Loans to associates and joint ventures
measured at fair value
Financial liabilities
2021
$’000
2020
$’000
64,125
37,669
46,838
59,896
Borrowings (floating, unhedged)
(20,330)
(24,341)
Interest rate swap
(1,529)
(4,407)
The potential impact of a change in interest rates by +/-50
basis points on profit and equity has been tabulated below:
Post-tax profits
Increase/
(decrease)
Equity
Increase/
(decrease)
2021
$’000
(283)
283
2020
$’000
(282)
282
2021
$’000
(283)
283
2020
$’000
(282)
282
– 50 basis points
+ 50 basis points
88
89
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
18. CONTRIBUTED EQUITY AND RESERVES
A. MOVEMENTS IN ORDINARY SHARE CAPITAL
19. DIVIDENDS
Date
Details
30 June 2019
Closing balance
Movement for the year
30 June 2020
Closing balance
Movement for the year
30 June 2021
Closing balance
Number
of shares
483,300,489
$’000
378,916
483,300,489
378,916
–
–
483,300,489
378,916
Declared and paid during the period
Prior year fully franked dividend 1.0 cent, paid on 19 November 2020 (2020: 3.0 cents)
Fully franked interim dividend for 2021: 1.0 cent (2020: 0.5 cent)
Dividend not recognised at year end
Final dividend 2.5 cents per share to be paid on 11 October 2021 (2020: 1.0 cents per share)
12,083
4,833
THE NATURE OF THE GROUP’S CONTRIBUTED EQUITY
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares of options
and/or performance rights are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly
Franking credit balance
Franking account balance as at the end of the financial year at 30% (2020: 30%)
attributable to the issue of new shares, options and/or performance rights for the acquisition of a business are not included
Franking credits that will arise from the payment of income tax
2021
$’000
4,833
4,833
9,666
2020
$’000
14,499
2,417
16,916
58,514
6,371
(5,178)
55,418
687
(2,071)
59,707
54,034
in the cost of the acquisition as part of the purchase consideration. Ordinary shares entitle the holder to participate in
dividends and the proceeds on winding up of the parent entity in proportion to the number of and amounts paid on the
shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to
one vote, and upon a poll each share held is entitled to one vote.
B. RESERVES
At 1 July 2019
Cash flow hedges (gross)
Deferred tax
Share based payment
Buyback on vesting of performance rights 4
At 30 June 2020
At 1 July 2020
Share based payment
Buyback on vesting of performance rights 5
At 30 June 2021
Cash flow
hedge
reserve 1
$’000
Share-based
payments
reserve 2
$’000
Non-
controlling
interest
reserve 3
$’000
(1,842)
2,636
(794)
–
–
–
–
–
–
–
12,238
(15,447)
–
–
1,299
(647)
12,890
12,890
1,600
(492)
13,998
–
–
–
–
(15,447)
(15,447)
–
–
(15,447)
Total
$’000
(5,051)
2,636
(794)
1,299
(647)
(2,557)
(2,557)
1,600
(492)
(1,449)
1. The cash flow hedge reserve is used to record gains or losses on a hedging instrument in a cash flow hedge that is recognised directly in equity. Amounts are recognised in profit or loss when the associated hedged
transaction affects profit or loss.
2. The share-based payments reserve is used to recognise the fair value of options and performance rights granted.
3. The non-controlling interest reserve is used to record the differences described in note 2(d) which may arise as a result of transactions with non-controlling interests that do not result in a loss of control.
4.
In September 2019, the Company purchased 572,160 shares to settle the vesting of FY17 Performance Rights.
5. During the year, the Company purchased 456,174 shares to settle the vesting of FY17 and FY18 Performance Rights.
Impact on the franking account of dividends proposed before the financial report was issued but not
recognised as a distribution to equity holders during the period
20. RECONCILIATION OF PROFIT/(LOSS) AFTER INCOME TAX TO NET CASH OUTFLOW FROM
OPERATING ACTIVITIES
Profit/(loss) after income tax
Add/(deduct) non cash items:
Depreciation
Amortisation of intangible assets
Employee share-based payments
Equity accounting for investments in associates and joint ventures
Interest received
Peet bonds and notes effective interest rate adjustment
Add other items:
Distributions and dividends from associates and joint ventures
Change in operating assets and liabilities during the financial year
(Increase)/decrease in receivables
(Increase)/decrease in inventories
Increase/(decrease) in tax liabilities
Decrease in payables
Decrease in provisions
Increase/(decrease) in deferred tax liabilities
Net cash inflow/(outflow) from operating activities
2021
$’000
2020
$’000
28,085
(30,691)
2,190
806
1,108
(14,033)
(2,639)
922
2,274
1,096
652
(8,060)
1,820
814
11,210
7,962
(1,996)
(11,466)
5,684
(5,244)
(919)
723
14,431
4,014
40,210
(8,228)
(3,677)
(6,350)
(9,686)
(7,850)
90
91
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
21. FAIR VALUE MEASUREMENT
VALUATION OF FINANCIAL INSTRUMENTS
For financial assets and liabilities, the Group uses the
following fair value measurement hierarchy:
• Level 1: the fair value is calculated using quoted prices in
active markets for identical assets and liabilities.
• Level 2: the fair value is determined using inputs other
than quoted prices included in level 1 that are observable
for the asset or liability either directly (as prices) or
indirectly (derived from prices).
KEY ESTIMATES
Fair value estimation
The fair value of financial instruments traded in
active markets (such as publicly traded derivatives
and trading and available for sale securities) is
based on quoted market prices at the balance
• Level 3: the fair value is based on inputs for the asset or
date. The quoted market price used for financial
liability that are not based on observable market data.
assets held by the Group is the current bid price;
FINANCIAL INSTRUMENTS MEASURED
AT FAIR VALUE
the appropriate quoted market price for financial
liabilities is the current ask price. Fair value of the
Peet bonds is based on price quotations at the
Certain loans to associates and joint ventures carried at
reporting date.
fair value through profit or loss. The fair values of these
financial assets have been estimated using discounted
cashflows with significant unobservable inputs at each
reporting date (level 3 of the fair value hierarchy).
The fair value of financial instruments that are not
traded in an active market is determined using
valuation techniques. The Group uses a variety of
methods and makes assumptions that are based
At 30 June 2021, the fair value of these loans to associates
on market conditions existing at each balance date.
and joint ventures is $37.7 million (30 June 2020: $59.9
million).
• Interest rate swaps are valued using valuation
techniques, which employs the use of market
At 30 June 2021, the carrying value and the fair value
of Peet bonds and notes are $197.7 million (30 June
2020: $222.8 million) and $202.9 million ($220.7 million),
respectively.
OTHER NOTES
22. REMUNERATION OF AUDITORS
24. PARENT ENTITY FINANCIAL
INFORMATION AND SUBSIDIARIES
A. PARENT ENTITY FINANCIAL
INFORMATION
SUMMARY FINANCIAL INFORMATION
The individual financial statements for the parent entity
show the following aggregate amounts:
2021
$
2020
$
338,065
351,900
7,500
56,350
7,000
63,050
Balance sheet
Current assets
Total assets
Current liabilities
Total liabilities
Shareholders’ equity
Issued capital
Fees to Ernst & Young (Australia)
Fees for auditing the statutory financial
report of the parent covering the group
and auditing the statutory financial
reports of any controlled entities
Fees for assurance services that are
required by legislation to be provided
by the auditor
– Compliance Plan & AFSL audits
Fees for other assurance and agreed-
upon-procedures services under other
legislation or contractual arrangements
Fees for other services
– Tax compliance
– Tax advice
Total Fees to Ernst & Young
(Australia)
168,792
179,086
Reserves
69,030
87,150
Share-based payments reserve
639,737
688,186
Retained profits
Total equity
(Loss)/profit for the year
23. CONTINGENCIES AND COMMITMENTS
Total comprehensive income
Details of the estimated maximum amounts of contingent
2021
$’000
2020
$’000
63,565
69,254
574,610
638,152
20,414
13,600
125,345
160,178
378,917
378,917
13,998
56,350
12,890
86,167
449,265
477,974
(20,151)
(20,151)
69,407
69,407
The Group measures its derivative financial liabilities at
observable inputs such as forward pricing and
liabilities (for which no amounts are recognised in the
GUARANTEES ENTERED INTO BY THE
fair value at each reporting date. These derivatives are
swap models.
financial statements) are as follows:
PARENT ENTITY
measured using significant observable inputs (level 2 of
the fair value hierarchy). The fair value at 30 June 2021 is
$1.5 million (30 June 2020: $4.4 million).
There have been no transfers between levels during the
period.
OTHER FINANCIAL INSTRUMENTS –
FAIR VALUE DISCLOSURES
Except for the Peet bonds and notes, the carrying value of
financial liabilities is considered to approximate fair values.
The quoted market value (on ASX) as at 30 June 2021 of a
Peet bond Series 2, Tranche 1 is $100.04 per bond (Level
1) (30 June 2020: $94.1).
The fair value as at 30 June 2021 of Peet Notes 2019 is
$1,021.6 per note (30 June 2020: $975.0), and of Peet
Notes 2021 is $1,016.8 per note. These notes are measured
using significant observable inputs (level 2 of the fair value
hierarchy).
• Receivables/borrowings are evaluated by the
Group based on parameters such as interest
rates and individual creditworthiness of the
counter party. Based on this evaluation,
allowances are taken into account for the
expected losses of these receivables.
The carrying amount of trade receivables and
payables
less
impairment provision of trade
receivables are assumed to approximate their
fair values. The fair value of financial liabilities for
disclosure purposes is estimated by discounting
the future contractual cash flows at the current
market interest rate that is available to the Group
for similar financial instruments.
Bank guarantees outstanding
Insurance bonds outstanding
2021
$’000
21,905
14,539
36,444
2020
$’000
21,684
13,604
35,288
Details of the estimated maximum amounts of contingent
liabilities (for which no amounts are recognised in the
financial statements) are as follows:
Bank guarantees outstanding
2021
$’000
689
2020
$’000
586
All contingent liabilities are expected to mature within
1 year.
At 30 June 2021, the Group had commitments of
$0.5 million (2020: $29.4 million) to purchase lots from
associates and joint ventures, at arms-length, to be on-sold
to third party buyers through the Group’s Peet Complete
program.
The Directors are not aware of any circumstances or
information, which would lead them to believe that these
contingent liabilities will eventuate and consequently no
provisions are included in the accounts in respect of these
matters.
92
93
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
24. PARENT ENTITY FINANCIAL
MATERIAL PARTLY-OWNED SUBSIDIARIES
DEED OF CROSS GUARANTEE
CONSOLIDATED BALANCE SHEET
INFORMATION AND SUBSIDIARIES
continued
B. SUBSIDIARIES
Financial information of subsidiaries that have material non-
controlling interests is provided below. This information is
based on amounts before inter-company eliminations.
Peet Limited and certain wholly-owned subsidiaries are
Set out below is a consolidated balance sheet at 30 June
parties to a deed of cross guarantee under which each
2021 of the closed group consisting of Peet Limited and
company guarantees the debts of the other. By entering
certain wholly owned subsidiaries.
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Non-controlling interest
Revenue
Loss after tax
Loss attributable to non-controlling
interest
Summarised cash flow information:
Operating
Financing
Net inflow/(outflow)
Peet Yanchep
Land Syndicate
2021
$’000
2,879
81,673
2,704
31,727
16,841
4,101
(1,238)
415
2020
$’000
3,861
80,049
20,310
12,241
17,258
2,819
(1,889)
635
Peet Yanchep
Land Syndicate
2021
$’000
(153)
200
47
2020
$’000
(998)
871
(127)
Peet has provided $2.4 million loan to Peet Yanchep Land
Syndicate as at 30 June 2021 (30 June 2020: $0.2 million)
and no loans to other partly-owned subsidiaries. Peet
granted a guarantee of $6.0 million to Peet Yanchep Land
Syndicate as at 30 June 2021 (30 June 2020: $4.9 million).
The Group has no further contractual obligations to provide
ongoing financial support.
SIGNIFICANT INVESTMENTS IN SUBSIDIARIES
The consolidated financial statements incorporate the
assets, liabilities and results of the following significant
subsidiaries in accordance with the accounting policy
described in note 2(a):
Name of Subsidiary
CIC Australia Pty Limited 1
Peet Craigieburn Pty Limited 2
Peet Greenvale No. 2 Pty Limited 2
Peet Cranbourne (51A Craig Rd) Pty Limited 2
Peet No. 88 Pty Limited 2
Peet Southern JV Pty Limited 2
Peet Brigadoon Pty Limited 2
Secure Living Pty Limited 2
Peet No. 108 Pty Limited 2
Peet No. 112 Pty Limited 2
Peet Treasury Pty Limited 2
Peet Estates (VIC) Pty Limited 2
Peet Development Management Pty Limited 2
Peet Estates (QLD) Pty Limited 2
Peet Estates (WA) Pty Limited 2
Peet Estates (SA) Pty Limited 1
Peet Funds Management Limited 2
Peet R B Plains Pty Limited 2
Peet No. 73 Pty Limited 2
Lakelands Retail Centre Development
Pty Limited 2
Peet Mt. Pleasant Pty Limited 2
Peet No. 127 Pty Limited 2
Lightsview Apartments Pty Limited 1
Peet Tonsley Pty Limited 2
JTP Homes Pty Limited 2
Peet Tonsley Apartments Pty Limited 2
Peet Keysborough Pty Limited 2
Peet Jumping Creek Pty Limited 2
Peet 2018 No.2 Pty Limited 2
Holding
2021
%
2020
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Peet Yanchep Land Syndicate 2
66.4
66.4
1.
2.
Incorporated in ACT.
Incorporated in WA.
94
into the deed, the wholly-owned entities have been
relieved from the requirements to prepare a financial report
and directors’ report under ASIC Corporations (Wholly-
owned Companies) Instrument 2016/785 issued by the
Australian Securities and Investments Commission.
The companies represent a ‘closed group’ for the purposes
of the Class Order.
2021
$’000
2020
$’000
Current assets
Cash and cash equivalents
Receivables
Inventories
Total current assets
Non-current assets
Receivables
Inventories
Consolidated statement of profit or loss
Revenue
Expenses
Finance costs
Share of net profit of associates
accounted for using the equity method
Profit/(loss) before income tax
Income tax (expense)/benefit
Profit/(loss) for the year
Other comprehensive income
Items that may be reclassified to profit or loss:
Changes in the fair value of
cash flow hedges
Income tax relating to components
of other comprehensive income
Other comprehensive income for the
year, net of tax
Total comprehensive income/(loss)
for the year
216,632
183,785
(183,845)
(224,921)
Investments accounted for using the
equity method
(5,342)
13,211
40,656
(12,154)
28,502
(7,428)
6,774
(41,790)
11,667
(30,123)
Right-of-use assets
Property, plant and equipment
Intangible assets
Total non-current assets
Total assets
Current liabilities
Payables
Land vendor liabilities
Borrowings
–
–
–
2,636
Lease liabilities
Derivative financial instruments
(794)
1,842
Current tax liabilities
Provisions
Total current liabilities
28,502
(28,281)
Non-current liabilities
Summary of movement in consolidated retained profits
Retained profits at the beginning of the
financial year
Effect of changing accounting policy
Profit/(loss) for the year
Dividends paid
Retained profits at the end of the
financial year
119,305
168,114
–
28,502
(9,666)
(1,770)
(30,123)
(16,916)
138,141
119,305
Borrowings
Lease liabilities
Derivative financial instruments
Deferred tax liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Retained profits
Total equity
2021
$’000
2020
$’000
63,958
37,379
114,898
46,719
23,335
87,087
216,235
157,141
59,800
101,649
290,701
302,472
265,904
266,175
3,848
3,092
2,193
5,188
4,151
2,587
625,538
682,222
841,773
839,363
33,492
–
3,555
1,797
1,529
6,371
12,437
59,181
41,286
6,350
105,066
1,607
–
687
5,550
160,546
3,723
158,313
247,655
–
5,520
4,407
15,314
14,563
158
216
266,850
183,019
326,031
343,565
515,742
495,798
378,916
378,916
(1,315)
(2,423)
138,141
119,305
515,742
495,798
95
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
25. SHARE-BASED PAYMENTS
CONSIDERATION
FAIR VALUE OF OPTIONS AND PERFORMANCE RIGHTS GRANTED
PEET EMPLOYEE SHARE OPTION PLAN
(PESOP) AND PEET PERFORMANCE
RIGHTS PLAN (PPRP)
Unless the Board determines otherwise, no payment will
be required for a grant of options and/or performance
rights under the PESOP and/or PPRP.
The establishment of the PESOP was approved by the
Board and shareholders during the 2004 financial year
and the Peet Limited PPRP was approved by shareholders
at the 2008 AGM. Employees of any Group Company
(including Executive Directors) will be eligible to participate
in the PESOP and/or PPRP at the discretion of the Board.
INVITATIONS TO APPLY FOR OPTIONS AND/
OR PERFORMANCE RIGHTS
Eligible employees, at the discretion of the Board, may
be invited to apply for options and/or performance rights
on terms and conditions to be determined by the Board
including as to:
• the method of calculation of the exercise price of each
option;
• the number of options and/or performance rights being
offered and the maximum number of shares over which
each option and/or performance rights is granted;
VESTING AND EXERCISE CONDITIONS
Under the plans, options and/or PRs only vest if the
employees are still employed by the Group at the end of
the vesting period, subject to the Board’s discretion, and
any set performance hurdles have been met.
Generally, as a pre-condition to exercise, any exercise
conditions in respect of an option and/or performance right
must be satisfied. However, the Board has the discretion
to enable an option and/or performance right holder to
exercise options and/or performance rights where the
exercise conditions have not been met, including, for
example, where a court orders a meeting to be held in
relation to a proposed compromise or arrangement in
respect of the Company, or a resolution is passed or an
order is made for winding up the Company. Options
granted under the PESOP and performance rights under
the PPRP carry no dividend or voting rights.
• the period or periods during which any of the options
and/or performance rights may be exercised;
LAPSE OF OPTIONS AND PERFORMANCE
RIGHTS
• the dates and
times when
the options and/or
Unexercised options and/or performance rights will lapse
performance rights lapse;
• the date and time by which the application for options
and/or performance rights must be received by Peet;
• any applicable conditions which must be satisfied or
circumstances which must exist before the options and/
or performance rights may be exercised.
Eligible employees may apply for part of the options and/or
performance rights offered to them, but only in specified
multiples.
upon the earlier to occur of a variety of events specified in
the rules of the PESOP and PPRP including, on the date or
in circumstances specified by the Board in the invitation,
failure to meet the options’ or performance rights’ exercise
conditions in the prescribed period or on the expiry date of
options and/or performance rights, as determined by the
Board.
The fair value of an option and PRs at grant date is determined using a Black-Scholes option pricing model and the value of
a performance right at grant date is determined using a Binomial pricing model. The models take into account the exercise
price, the term of the option and/or performance right, the vesting and performance criteria, the impact of dilution, the
non-tradeable nature of the option or performance right, the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk free interest rate for the term of the option and/or performance
right.
The inputs for assessing the fair value of the performance rights issued during the year under the PPRP were:
Grant Date
19 Nov 20
Exercise Price
Expiry date
Share price at
grant date
Risk free
interest rate
$0.00
19 Nov 35
$1.06
0.27%
Assessed
fair value
$0.94
The expected price volatility is based on the historic volatility (based on the remaining life of the options and/or performance
rights), adjusted for any expected changes to future volatility due to publicly available information.
Total expenses arising from share-based payment transactions recognised during the year as part of employee benefits
expense is $1,600,218 (2020: $1,298,700).
Set out below are summaries of options and performance rights granted under the plans:
Grant date
Expiry date
Exercise
Price $
Assessed
fair value $
Balance at
1 July
Granted
during the
year
Exercised
during the
year
Lapsed/
forfeited
during the
year
Balance at
30 June
Exercisable
at 30 June
30 June 2021
Options
30 Nov 07
Performance rights
N/A
$4.10
$1.12
1,200,000
21 Dec 15
23 Nov 16
21 Dec 16
29 Nov 17
5 Dec 17
21 Nov 18
21 Nov 19
19 Nov 20
21 Dec 30
23 Nov 31
21 Dec 31
29 Nov 32
5 Dec 32
21 Nov 33
21 Nov 34
19 Nov 35
–
–
–
–
–
–
–
–
$0.957
269,103
$0.801
1,065,114
$0.849
$1.328
808,392
874,347
$1.299
1,232,635
$0.940
2,097,201
$1.044
2,333,607
$0.940
–
3,243,407
–
–
–
–
–
–
–
–
–
–
–
(227,710)
–
–
–
–
1,200,000
1,200,000
269,103
269,103
1,065,114
1,065,114
580,682
–
(524,608)
349,739
(228,464)
(739,581)
264,590
–
–
–
–
2,097,201
(80,460)
2,253,147
–
3,243,407
580,682
349,739
264,590
–
–
–
8,680,399
3,243,407
(456,174)
(1,344,649) 10,122,983
2,529,228
9,880,399
3,243,407
(456,174)
(1,344,649) 11,322,983
3,729,228
96
97
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
25. SHARE-BASED PAYMENTS continued
FAIR VALUE OF OPTIONS AND PERFORMANCE RIGHTS GRANTED continued
30 June 2020
Options
30 Nov 07
Performance rights
21 Dec 15
23 Nov 16
21 Dec 16
29 Nov 17
5 Dec 17
21 Nov 18
21 Nov 19
Total
N/A
$4.10
$1.12
1,200,000
21 Dec 30
23 Nov 31
21 Dec 31
29 Nov 32
5 Dec 32
21 Nov 33
21 Nov 34
–
–
–
–
–
–
–
$0.957
269,103
$0.801
1,065,114
$0.849
1,380,552
$1.328
874,347
$1.299
1,232,635
$0.940
2,097,201
–
–
–
–
–
–
–
–
–
–
(572,160)
–
–
–
–
$1.044
–
2,333,607
6,918,952
2,333,607
(572,160)
8,118,952
2,333,607
(572,160)
–
–
–
–
–
–
–
–
–
–
1,200,000
1,200,000
269,103
269,103
1,065,114
1,065,114
808,392
874,347
1,232,635
2,097,201
2,333,607
808,392
–
–
–
–
8,680,399
2,142,609
9,880,399
3,342,609
26. MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
The Directors have declared a final fully franked dividend of 2.5 cents per share in respect to the year ended 30 June 2021.
The dividend is to be paid on Monday, 11 October 2021, with a record date of Friday, 17 September 2021. No provision
has been made for this dividend in the financial report as the dividend was not declared or determined by the directors on
or before the end of the financial year.
27. OTHER ACCOUNTING POLICIES
A. FINANCIAL ASSETS
INITIAL RECOGNITION AND MEASUREMENT
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other
comprehensive income (OCI), and fair value through profit or loss.
SUBSEQUENT MEASUREMENT
profit or loss on initial recognition if doing so eliminates, or
For purposes of subsequent measurement, financial
significantly reduces, an accounting mismatch.
assets are classified in four categories:
• Financial assets at amortised cost (debt instruments)
• Financial assets at fair value through OCI with recycling
of cumulative gains and losses (debt instruments)
• Financial assets designated at fair value through OCI
with no recycling of cumulative gains and losses upon
derecognition (equity instruments)
• Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are
carried in the statement of financial position at fair value
with net changes in fair value recognised in the statement
of profit or loss.
This category includes loans to associates and joint
ventures and derivative instruments.
IMPAIRMENT
The Group recognises an allowance for expected credit
Financial assets at amortised cost (debt instruments)
losses (ECLs) for all debt instruments not held at fair value
This category is the most relevant to the Group. The Group
through profit or loss. ECLs are based on the difference
measures financial assets at amortised cost if both of the
between the contractual cash flows due in accordance
following conditions are met:
• The financial asset is held within a business model with
the objective to hold financial assets in order to collect
contractual cash flows; and
with the contract and all the cash flows that the Group
expects to receive, discounted at an approximation of the
original effective interest rate. The expected cash flows will
include cash flows from the sale of collateral held or other
credit enhancements that are integral to the contractual
• The contractual terms of the financial asset give rise on
terms.
specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding
Financial assets at amortised cost are subsequently
measured using the effective interest (EIR) method and are
subject to impairment. Gains and losses are recognised in
profit or loss when the asset is derecognised, modified or
impaired.
The Group’s financial assets at amortised cost includes
trade receivables, and loans to associates and JVs included
ECLs are recognised in two stages. For credit exposures
for which there has not been a significant increase in credit
risk since initial recognition, ECLs are provided for credit
losses that result from default events that are possible
within the next 12-months (a 12-month ECL). For those
credit exposures for which there has been a significant
increase in credit risk since initial recognition, a loss
allowance is required for credit losses expected over the
remaining life of the exposure, irrespective of the timing of
the default (a lifetime ECL).
For trade receivables and contract assets, the Group applies
a simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead
recognises a loss allowance based on lifetime ECLs at
each reporting date. The Group has established a provision
matrix that is based on its historical credit loss experience,
adjusted for forward-looking factors specific to the debtors
and the economic environment.
The Group considers a financial asset in default when
internal or external information indicates that the Group
is unlikely to receive the outstanding contractual amounts
in full before taking into account any credit enhancements
held by the Group. A financial asset is written off when
there is no reasonable expectation of recovering the
contractual cash flows.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics
under Receivables.
and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant
financing component or for which the Group has applied the practical expedient, the Group initially measures a financial
asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade
receivables that do not contain a significant financing component or for which the Group has applied the practical expedient
are measured at the transaction price determined under AASB 15.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give
rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This
assessment is referred to as the SPPI test and is performed at an instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate
cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling
the financial assets, or both.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include
financial assets held for trading, financial assets designated
upon initial recognition at fair value through profit or loss,
or financial assets mandatorily required to be measured
at fair value. Financial assets are classified as held for
trading if they are acquired for the purpose of selling or
repurchasing in the near term. Derivatives, including
separated embedded derivatives, are also classified as
held for trading unless they are designated as effective
hedging instruments. Financial assets with cash flows
that are not solely payments of principal and interest are
classified and measured at fair value through profit or loss,
irrespective of the business model. Notwithstanding the
criteria for debt instruments to be classified at amortised
cost or at fair value through OCI, as described above,
debt instruments may be designated at fair value through
98
99
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Notes to the Consolidated Financial Statements
For the year ended 30 June 2021
27. OTHER ACCOUNTING POLICIES continued
C. INTANGIBLE ASSETS
E. TERMINATION BENEFITS
B. LEASES
For leases with a lease term greater than 12 months that
are not considered low value leases (see below), right-of-
use assets and associated lease liabilities are recognised at
the commencement of the lease.
Right-of-use assets are measured at cost initially and then
depreciated over the shorter of the asset’s useful life and the
lease term on a straight-line basis. The cost of right-of-use
assets includes the amount of lease liabilities recognised,
initial direct costs incurred, and lease payments made at or
before the commencement date less any lease incentives
received. Right-of-use assets are subject to impairment.
The lease liability is initially measured at net present
value of future
lease payments using the Group’s
incremental borrowing rate. The lease payments include
fixed payments less any lease incentives receivable and
variable lease payments that depend on an index or a rate.
The lease payments are allocated between repayment of
lease liability and interest expense (charged to profit or loss
over the lease period). In addition, the carrying amount of
lease liabilities is remeasured if there is a modification or a
change in the lease term.
For short-term leases and leases of low-value assets,
lease payments are recognised on a straight-line basis as
an expense in profit or loss. Short-term leases are leases
with a lease term of 12 month or less. Low-value assets
are generally small items of office equipment.
Intangible assets primarily consist of software and are
shown at historical costs less depreciation.
Depreciation on intangible assets is calculated using the
straight-line method over their estimated useful lives as
below.
• Software – 5 years
Where costs incurred to configure or customise Software-
as-a Service (SaaS) arrangements result in the creation of a
resource which is identifiable, and where the company has
the power to obtain the future economic benefits flowing
from the underlying resource and to restrict the access
of others to those benefits, such costs are recognised as
a separate intangible software asset and amortised over
the useful life of the software on a straight-line basis.
The amortisation is reviewed at least at the end of each
reporting period and any changes are treated as changes in
accounting estimates. Where costs incurred to configure or
customise do not result in the recognition of an intangible
software asset, then those costs that provide the Group
with a distinct service (in addition to the SaaS access) are
now recognised as expenses when the supplier provides
the services.
D. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are shown at historical cost
less depreciation. Historical cost includes expenditure that
is directly attributable to the acquisition of the items.
Depreciation on property, plant and equipment is calculated
using the straight-line method to allocate their cost, net of
their residual values, over their estimated useful lives, as
follows:
• Fixtures and fittings – 3 to 10 years
• Leasehold improvements – 10 years
The assets’ residual values and useful lives are reviewed,
and adjusted if appropriate, at each balance date. An
asset’s carrying amount is written down immediately to
its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount. Gains and
losses on disposals are determined by comparing proceeds
with carrying amount. These are included in the statement
of profit or loss.
Termination benefits are payable when employment is
terminated before the normal retirement date, or when an
employee accepts voluntary redundancy in exchange for
these benefits. The Group recognises termination benefits
when it is demonstrably committed to either terminating
the employment of current employees according to a
detailed formal plan without possibility of withdrawal or
The entities in the tax consolidated group entered into a
tax sharing agreement which limits the joint and several
liability of the wholly-owned entities in the case of a default
by the head entity, Peet Limited. At the balance sheet date
the possibilities of default were remote.
Assets or liabilities arising under tax funding agreements
with the tax consolidated entities are recognised as
amounts receivable from or payable to other entities in the
providing termination benefits because of an offer made
Group.
to encourage voluntary redundancy. Benefits falling due
more than 12 months after balance date are discounted to
present value.
Any difference between the amount assumed and amounts
receivable or payable under the tax funding agreement are
recognised as a contribution to (or distribution from) the
F. GOODS AND SERVICES TAX (GST)
wholly-owned entity.
Revenues, expenses and assets are recognised net of the
amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is
recognised as part of the cost of acquisition of the asset or
as part of the expense.
Receivables and payables are stated inclusive of the
amount of GST receivable or payable. The net amount of
GST recoverable from, or payable to, the taxation authority
is included with other receivables or payables in the
balance sheet.
Cash flows are presented on a gross basis. The GST
components of cash flows arising from investing or
financing activities which are recoverable from, or payable
to the taxation authority, are presented as operating cash
flows.
G. GOVERNMENT GRANTS
Government grants are recognised where there
is
reasonable assurance that the grant will be received, and all
attached conditions will be complied with. When the grant
relates to an expense item, it is recognised as income on
a systematic basis over the periods that the related costs
are expensed.
INVESTMENTS IN SUBSIDIARIES
Investments in subsidiaries are accounted for at cost in
the separate financial statements of Peet Limited. Such
investments include both investments in shares issued
by the subsidiary and other parent entity interests that
in substance form part of the parent entity’s investment
in the subsidiary. These include investments in the form
of interest-free loans which have no fixed repayment
terms and which have been provided to subsidiaries as an
additional source of long-term capital.
I. NEW ACCOUNTING STANDARDS AND
INTERPRETATIONS ISSUED BUT NOT
YET EFFECTIVE
There are no new and amended accounting standards
that are not yet effective and that are expected to have
a material impact on the entity in the current or future
reporting periods and on foreseeable future transactions.
AMENDMENTS TO IAS 1: CLASSIFICATION OF
LIABILITIES AS CURRENT OR NON-CURRENT
In January 2020, the IASB issued amendments to
paragraphs 69 to 76 of IAS 1 to specify the requirements
for classifying liabilities as current or non-current. The
H. PARENT ENTITY FINANCIAL INFORMATION
amendments are effective for annual reporting periods
TAX CONSOLIDATION LEGISLATION
Peet Limited and its wholly-owned Australian controlled
entities have implemented the tax consolidation legislation
as of 1 July 2003. Peet Limited is the head entity of the
tax consolidated group. Members of the group are taxed
as a single entity and the deferred tax assets and liabilities
of the entities are set-off in the consolidated financial
statements.
beginning on or after 1 January 2023 and must be applied
retrospectively. The Group is currently assessing the
impact the amendments will have on current practice.
However, the Group does not expect a material impact
based on current arrangements.
100
101
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Directors’ Declaration
Year ended 30 June 2021
Independent Auditor’s Report
In the Directors’ opinion:
a. the financial statements and notes set out on pages 67 to 101 are in accordance with the Corporations Act 2001,
including:
i. complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
ii. giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2021 and of its performance
for the financial year ended on that date; and
b. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable; and
c. at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed
group identified in note 24 will be able to meet any obligations or liabilities to which they are, or may become,
subject by virtue of the deed of cross guarantee described in note 24.
Note 2 discloses that the financial statements and notes also comply with International Financial Reporting Standards.
The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by
section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
Brendan Gore
Managing Director and Chief Executive Officer
Perth, Western Australia
25 August 2021
102
103
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Independent Auditor’s Report
104
105
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Independent Auditor’s Report
106
107
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Independent Auditor’s Report
108
109
ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Securityholder Information
DISTRIBUTION OF ORDINARY SHARES AND PEET BONDS
The names of the 22 largest holders of PPCHB Bonds as at 14 September 2021 are listed below:
As at 14 September 2021 there were 2,143 current holders of ordinary shares and 565 current holders of Series 2,
Tranche 1 Peet Bonds (“PPCHB Bonds”). These holdings were distributed in the following categories:
Size of Holding
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
No of
Shareholders
% of Issued
Shares
No of PPCHB
Bondholders
% of Issued
PPCHB Bonds
545
584
345
597
72
2,143
0.03
0.37
0.55
3.51
95.54
100.00
506
49
5
4
1
32.46
21.59
7.12
10.22
28.61
565
100.00
There were 390 shareholdings of less than a marketable parcel of $500 (435 shares).
There were nil holdings of PPCHB Bonds of less than a marketable parcel of $500 (five PPCHB Bonds).
SECURITYHOLDERS
The names of the 20 largest holders of ordinary shares as at 14 September 2021 are listed below:
Name
Scorpio Nominees Pty Ltd
Citicorp Nominees Pty Limited
J P Morgan Nominees Australia Pty Limited
HSBC Custody Nominees (Australia) Limited
CS Third Nominees Pty Limited
HSBC Custody Nominees (Australia) Limited – A/C 2
National Nominees Limited
Argo Investments Limited
Mr Warwick Donald Hemsley
Ian Murray Charles Palmer & Helen Christina Palmer
UBS Nominees Pty Ltd
Golden Years Holdings Pty Ltd
Merrill Lynch (Australia) Nominees Pty Limited
Mirrabooka Investments Limited
BNP Paribas Noms Pty Ltd
Zero Nominees Pty Ltd
Mr Brendan David Gore
Netwealth Investments Limited
Brispot Nominees Pty Ltd
CS Fourth Nominees Pty Limited
Total for 20 largest shareholders
Total other shareholders
Total ordinary shares on issue
Number of
Shares Held
% of
Shares Held
86,582,433
68,372,688
58,715,944
42,536,964
29,100,298
25,114,628
19,782,981
18,152,705
17,459,881
12,707,352
8,886,215
8,656,230
7,808,362
6,100,000
5,981,378
5,630,000
5,303,817
5,136,867
4,451,781
3,927,828
17.91
14.16
12.15
8.80
6.02
5.20
4.09
3.76
3.61
2.63
1.84
1.79
1.62
1.26
1.24
1.16
1.10
1.06
0.92
0.81
440,408,352
42,892,137
483,300,489
91.13
8.87
100.00
Name
HSBC Custody Nominees (Australia) Limited
National Nominees Limited
Grizzly Holdings Pty Limited
Keppoch Pty Limited
J P Morgan Nominees Australia Pty Limited
Finot Pty Limited
BNP Paribas Nominees Pty Ltd Hub24 Custodial Serv Ltd
Mr Joseph Compagnone & Mrs Cheryl Robyn Compagnone
BT Portfolio Services Limited
Roni H Pty Ltd
Invia Custodian Pty Limited
Mr Joseph Compagnone & Mrs Cheryl Robyn Compagnone
Netwealth Investments Limited
Hamilton Industries (Victoria) Pty Limited
Trancape Pty Ltd
Trendmead Pty Ltd
A Cameron Holdings Pty Limited
Bentleigh Nominees Pty Ltd
Invia Custodian Pty Limited
Mr Thomas Kiss & Mrs Amanda Aizenstros
Mr Archibald John McKirdy
Mr Jian Wang
Total for 20 largest PPCHB Bondholders
Total other PPCHB Bondholders
Total PPCHB Bonds on issue
SUBSTANTIAL SHAREHOLDERS
Number of
PPCHB
Bonds Held
% of PPCHB
Bonds Held
143,065
28.60
16,284
12,600
12,000
10,234
8,000
7,539
7,050
7,000
6,000
4,690
4,262
4,023
4,000
4,000
3,500
3,125
3,000
3,000
3,000
3,000
3,000
3.26
2.52
2.40
2.05
1.60
1.51
1.41
1.40
1.20
0.94
0.85
0.80
0.80
0.80
0.70
0.63
0.60
0.60
0.60
0.60
0.60
272,372
227,628
500,000
54.47
45.53
100.00
As disclosed in substantial holding notices lodged with ASX (as applicable) as at 14 September 2021:
Name
Scorpio Nominees Pty Ltd and its associates
Allan Gray Australia Pty Ltd and its related bodies corporate
L1 Capital Pty Ltd
1. Percentage of issued shares held as at the date notice provided.
Date of Last Notice
Received
Number of
Shares Held
% of Issued
Shares Held 1
13 November 2018
99,156,523
14 August 2020
88,722,096
31 March 2020
67,316,177
20.50
18.36
13.93
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Corporate Directory
VOTING RIGHTS OF ORDINARY SHARES
The constitution provides for votes to be cast:
• on a show of hands, one vote for each shareholder; and
• on a poll, one vote for each fully paid ordinary share.
VOTING RIGHTS OF PEET BONDS
PEET LIMITED
A.B.N. 56 008 665 834
Website Address – www.peet.com.au
DIRECTORS
Tony Lennon, FAICD, Non-executive Chairman
Bondholders have certain rights to vote at meetings of bondholders but are not entitled to vote at general meetings,
Brendan Gore, BComm, FCPA, FCIS, FGIA, FAICD, Managing Director and Chief Executive Officer
unless provided for by the ASX Listing Rules or the Corporations Act.
SECURITIES EXCHANGE LISTINGS
Peet Limited’s ordinary shares are listed on the Australian Securities Exchange (“ASX”). The Company’s ASX code is PPC.
Peet Limited’s Series 2, Tranche 1 Peet Bonds are listed on the ASX, with the code being PPCHB.
Anthony Lennon, BA, Grad Dip Bus Admin, MAICD, Non-executive Director
Trevor Allen, BComm (Hons), CA, FF, FAICD, Independent Director
Vicki Krause, BJuris LLB W.Aust, GAICD, Independent Director
Robert McKinnon, FCPA, FCIS, FGIA, MAICD, Lead Independent Director
OPTIONS AND PERFORMANCE RIGHTS
As at 14 September 2021, Peet Limited had 1,200,000 options on issue, held by one key management person, as
disclosed elsewhere in the Annual Report.
GROUP COMPANY SECRETARY
Dom Scafetta, BComm, CA
As at 14 September 2021, Peet Limited had 8,921,506 performance rights on issue, held by a total of eight key management
REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS
personnel and other senior managers.
These options and performance rights, which are not listed, were issued under the PESOP and PPRP, respectively.
PEET NOTES
As at as at 14 September 2021, Peet Limited had 75,000 unsecured and unsubordinated, 6.75% fixed-rate notes on
issue, with a maturity date of 7 June 2024 and 75,000 unsecured and unsubordinated floating rate notes on issue, with
a maturity date of 30 September 2026. Noteholders are not entitled to vote at general meetings, however, are entitled to
vote on certain matters that affect their rights under the notes’ Trust Deed. The notes were issued to professional and
sophisticated investors and are not listed.
WEBSITE ADDRESS
www.peet.com.au
The Peet Limited website offers the following features:
• investor relations page with the latest Company announcements;
• news service providing up to date information on the Company’s activities and projects; and
• access to annual and half year reports.
7th Floor, 200 St Georges Terrace
Perth, Western Australia 6000
Tel. (08) 9420 1111
SHARE REGISTER
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
Perth, Western Australia 6000
Tel: (08) 9323 2000
AUDITOR
Ernst & Young
Ernst & Young Building
11 Mounts Bay Road
Perth, Western Australia 6000
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ANNUAL REPORT 2021 | PEET LIMITEDPEET LIMITED | ANNUAL REPORT 2021 Peet Limited
ACN 008 665 834
Level 7, 200 St Georges Terrace Perth WA 6000
Telephone +61 8 9420 1111 | Facsimile +61 8 9481 4712
www.peet.com.au
Perth | Melbourne | Brisbane | Canberra | Adelaide
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