ANNUAL REPORT 2022
CONTENTS
Our Business
FY22 Performance At a Glance
Group Strategy
Business Model
National Reach
Chairman’s Review
Managing Director and CEO’s Review
Operational and Financial Review
Development Projects
Funds Management Projects
Joint Ventures
Our Commitment to Sustainability
Corporate Calendar FY23
Financials
2
4
6
7
8
10
12
16
18
20
22
26
28
DEFINING FUTURE
PLACES OF
belonging
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OUR BUSINESS
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, townhouses and
apartments in the major growth corridors across 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.
VISION
Imagine and realise future places
where lives are enhanced by
communities built on a sense
of belonging.
PURPOSE
Defining future places of belonging.
VALUES
PEOPLE CENTRIC
People are always at the centre of our ideas,
considerations and decisions.
CREATIVE INTELLIGENCE
We are driven by imagination, innovation
and future-focused thinking. We also apply a
considered and deliberate approach to design
and solve problems creatively.
UNWAVERING COMMITMENT
We are tenacious, accountable and trusted
to deliver quality.
Image: Flagstone, QLD (Artists Impression)
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FY22 PERFORMANCE
AT A GLANCE
FINANCIAL
OPERATING AND
STATUTORY PROFIT1
AFTER TAX
84%
INCREASE
$52.3
million
EBITDA2
MARGIN OF
30.0%
$86.0
million
OPERATING
EARNINGS OF
10.83 CENTS
PER SHARE
84%
INCREASE
OPERATING
CASH FLOW3 OF
$80.1
MILLION
DIVIDEND OF
6.25 CENTS
PER SHARE
FULLY FRANKED
79%
INCREASE
GEARING4
OF 29.9%
OPERATIONAL
3,163
LOTS SOLD5
WITH A GROSS
VALUE OF
$1.06b
2,514
LOTS SETTLED5
WITH A GROSS VALUE OF
$674.3m
$930m
CONTRACTS ON HAND5
70%
INCREASE
ON FY21
SECURED 100%
ACQUISITION OF
UNIVERSITY
OF CANBERRA
PROJECT
(ACT)
SALE OF
NEW
BEITH
LANDHOLDING
(QLD)
SECURED 2 SITES
FROM RENEWAL SA IN
INNER
CITY
ADELAIDE
(SA)
ACQUISITION OF
THE REMAINING
50% OF
FLAGSTONE
(QLD)
5
Includes equivalent lots.
“Peet delivered a strong performance during FY22, with considerable
growth in key financial metrics. The material improvement in margins
and profit was driven by price growth across the Group’s developing and
selling projects, combined with the ongoing focus on cost management,
the changing product mix and the continued focus on unlocking value by
appropriately managing the Group’s significant landbank. This was supported
by continuing favourable market conditions and consumer confidence during
the majority of FY22, especially across the east coast business.”
1 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.
EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
2
3 Before acquisitions.
4 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash) / (Total assets less cash, less intangible assets).
Brendan Gore
Managing Director and Chief Executive Officer
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GROUP STRATEGY
Strategic focus on optimising land bank for future
growth and value creation.
INVEST
ENHANCE
EXPAND
MAINTAIN
Invest in high quality
land in strategic locations
across the country
Enhance, plan and
create communities
and homes with a range
of product appealing to
all buyer segments
Expand product
offering and geographic
presence to appeal
to wider variety of
customers
Maintain strong
capital management
Strategic Pillars
MASTERPLANNED
COMMUNITIES
TOWNHOUSES
APARTMENTS
ENABLED BY:
Positive environmental and social impact
Engaged and high-performing team
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 16,2006 lots across 22 projects,
providing opportunities for investors ranging from mums and dads to institutional
and wholesale investors to participate in land development projects.
S
M U N ITIE
F
U
A
P
A
N
D
R
T
S
M
M
N
E
A
T
S
WHOLESALE/
INSTITUTIONAL
9,675 lots
$2.9bn GDV
N
A
G
E
M
E
N
T
NED CO M
N
LA
P
R
E
T
S
A
M
OWNED
23,162 lots
$8.3bn GDV
T
N
E
M
P
O
L
E
V
E
D
RETAIL
4,556 lots
$1.4bn GDV
JOINT VENTURES
1,983 lots
$0.8bn GDV
TOWNHOUS E S
Image: University of Canberra, ACT
6
Includes equivalent lots.
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Leading, national
developer with a
proven track record
of over 127 years
Diversified land bank
strategically located
in growth corridors of
major cities in every
mainland state of
Australia
Product expansion to
include townhouses
and apartments,
broadening
customer base
NATIONAL REACH
WA
PROJECTS:
18
ACT
PROJECTS:
1
QLD
PROJECTS:
12
VIC
PROJECTS:
9
SA
PROJECTS:
5
NSW
PROJECTS:
2
39,376
LOTS7
$13.4bn
GROSS DEVELOPMENT VALUE
47
PROJECTS NATIONALLY
7
Includes equivalent lots.
Image: Riverbank Estate, QLD
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CHAIRMAN’S REVIEW
Dear Shareholders,
I am pleased to present Peet’s Annual Report for the
year ended 30 June 2022.
Over 127 years, Peet has a proud heritage of creating
communities that provide an enhanced lifestyle
attraction for homebuyers, where residents feel a
sense of belonging and connection with each other.
The Group’s diversified portfolio of masterplanned
communities, townhouses and apartments are well-
located in desirable urban locations and key growth
corridors. Our national footprint allows us to leverage
our landbank, providing economies of scale to deliver
a wide range of product.
— 2,597 million contracts on hand11 with a value of
$930 million as at 30 June 2022, providing strong
momentum as the Group enters FY23.
The factors behind our record profit performance and
more detail around our key transactions during FY22
are covered in the Managing Director and CEO’s
Review and in the Review of Operations forming part
of the 2022 Directors’ Report.
Expanding product offering and geographic
presence to appeal to a wider variety of
customers:
— Focusing on increasing the Group’s pipeline of
townhouse product
— Build on the apartment pipeline as opportunities
emerge
Strategy
Maintaining strong capital management:
Peet is well positioned for growth and value creation
with its key strategic focus areas for FY23 and
beyond including:
Amongst the key outcomes for FY22 were:
Investing in high quality land in strategic
locations across the country
— Our financial results for FY22 include an operating8
and statutory profit9 after tax of $52.3 million,
representing an increase of 84% on FY21.
— Peet extended its on-market share buy-back of up
to 5% of its issued ordinary shares. As at 25 August
2022, the Company had acquired 13.7 million of its
ordinary shares, representing approximately 56% of
the total shares to be acquired. The on-market share
buy-back has since been extended for a further
12 months to 30 August 2023.
— Strong capital position, with gearing10 at 30 June
2022 of 29.9%, which is within the Company’s
target range.
— The Group entered several key transactions that
have accelerated the delivery of its strategy, whilst
strengthening the balance sheet and supporting
earnings growth.
— Balancing the portfolio between land and built
form projects
— Continuing to increase the weighting of the
landbank to undersupplied east coast markets
— Considering selective acquisitions to restock the
project pipeline where appropriate
— Including small to mid-sized land projects in
the short to medium term
Enhancing, planning and creating
communities and homes with a range of
product appealing to all buyer segments:
— Accelerating the realisation of embedded margins
within the land bank
8 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.
9 Statutory profit after tax means net profit measured in accordance with Australian Accounting Standards, attributable to the owners of Peet Limited.
10 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash) / (Total assets less cash, less intangible assets).
11
Includes equivalent lots.
Thanks
As always, I would like to thank my fellow Board
members for their valuable 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 focus to deliver so
handsomely on our Group strategy and achieve record
earnings in FY22.
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 throughout the
next 12 months.
Tony Lennon
Chairman
“We will be focused on
positioning the Group for growth
through a prudent approach to
project delivery and identifying
growth opportunities.”
— Focusing on continuing to improve operating cash
flows and reducing debt
— Positioning the Group to consider capital
management initiatives to improve shareholder
returns (including a dividend payout ratio of 50% to
60% and the extended on-market share buy-back)
— Continuing to assess opportunities to maximise
market cycles to unlock value where appropriate
Peet will be focused on positioning the Group for
growth through a prudent approach to project delivery
and identifying growth opportunities.
Dividends
Subsequent to year end, the Directors declared a final
dividend for FY22 of 4.0 cent per share, fully franked.
This brings the total dividend for FY22 to 6.25 cents
per share, fully franked. This compares to the FY21
dividend of 3.5 cents per share, fully franked. The final
FY22 dividend is to be paid on Friday 14 October 2022,
with a record date of Monday, 19 September 2022.
The Directors have resolved to keep the Company’s
Dividend Reinvestment Plan deactivated.
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MANAGING DIRECTOR AND
CEO’S REVIEW
Dear Shareholders,
I am pleased to report the Group’s full year
performance as at 30 June 2022. Peet delivered a
strong performance during FY22, underpinned by a
high quality, diverse portfolio and repositioning of the
Group’s landbank weighting to undersupplied east
coast markets to further drive earnings growth.
FY22 Performance
The Peet Group achieved a record operating profit12 and
statutory profit13 after tax of $52.3 million for the year
ended 30 June 2022, which represents an increase of
84% on the previous financial year and is in line with the
market update released in July 2022.
The Group reported EBITDA14 of $86.0 million during
FY22, compared to $58.1 million in FY21, with an
EBITDA14 margin of 30%, compared to the margin
achieved in FY21 of 25%.
The material improvement in margins and profit was
driven by price growth across the Group’s developing
and selling projects, combined with the ongoing focus
on cost management, the changing product mix and
the continued focus on unlocking value by appropriately
managing the Group’s significant landbank. This was
supported by continuing favourable market conditions
and consumer confidence during the majority of FY22,
especially across the east coast business.
The Group saw continued demand for its products
during FY22, slightly improving on the strong sales
achieved in FY21, achieving 3,163 sales15 across its
Funds Management, Development and Joint Venture
projects with a gross value of $1.06 billion, representing
an increase in the gross value of sales of 23%.
The Group achieved 2,514 settlements15 for the full year
with a gross value of $674.3 million across its Funds
Management, Development and Joint Venture projects,
compared with 2,980 settlements15 in FY21 with a value
of $739.9 million.
At 30 June 2022, there were 2,597 contracts on hand15,
with a gross value of $930.0 million, compared with
1,948 contracts on hand15 with a gross value of $546.6
million at 30 June 2021. This represents an increase
of 33% in contracts on hand15 and a 70% increase in
contract value, providing a strong starting position and
visibility for FY23.
Gearing
The Group continues to apply a prudent focus on capital
management and during FY22 increased its cash
inflows from operations (prior to acquisitions) to $80.1
million.
As at 30 June 2022 it had gearing16 of 29.9%
(30 June 2021: 24.8%) and net interest-bearing debt
(including Peet Bonds) of $245.2 million, compared with
$203.9 million at 30 June 2021.
As at the date of the FY22 Directors’ Report, the Group
had cash and available debt facility headroom of $205.0
million and a weighted average debt maturity of more
than three years.
The Group has a strong balance sheet and sufficient
capacity to fund the current portfolio of projects,
including accelerating delivery of product, if required, to
meet increases in demand.
Peet’s $50 million PPCHB Bonds mature 5 October
2022. They will be repaid on maturity via cash and
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 after tax means net profit measured in accordance with Australian Accounting Standards, attributable to the owners of Peet Limited.
14 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
15
16 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash) / (Total assets less cash, less intangible assets).
Includes equivalent lots.
available headroom in the senior debt facility and/or
other refinancing options available.
— Approximately 73% of the Group’s landbank is now
under development
Gearing17 during FY23 is expected to be above the
target range of 20% to 30% due to the level of
construction activity required to deliver on the significant
contracts on hand, the acquisition of the balance of the
Flagstone City (Qld) project and the acquisition of the
University of Canberra (ACT) project.
Delivery Against Strategy
The Group’s portfolio is well positioned for positive
growth and value creation, and during FY22 Peet
continued to deliver against its strategy.
Invest in high quality land in strategic locations
across the country
— Remain focused on weighting our landbank to
undersupplied east coast markets
— We secured full ownership of the Flagstone City
(QLD) and University of Canberra (ACT) projects
— New acquisitions during FY22, including three
townhouse/apartment sites and three land projects,
resulted in increasing embedded margins
— Continue to assess selective acquisitions to restock
pipeline, with opportunities expected to emerge as
markets moderate
Enhance, plan and create communities and
homes with a range of product appealing to all
buyer segments
— Six new projects commenced development / sales
during FY22
— First settlements from 13 new projects by FY25,
increasing activation of landbank to approximately 90%
Expand our product offering and geographic
presence to appeal to a wider variety of
customers
— We have focused on increasing the Group’s
townhouse portfolio, with a current pipeline of
1,200 townhouses nationally
— As opportunities emerge, expanding the Group’s
apartment pipeline will be considered
Maintain strong capital management
— The Group remains focused on prudent capital
management with operating cash flow (before
acquisitions) of $80.1 million, up 30%, and gearing17
within target range of 29.9%
— The sales program of non-core assets has realised
$65 million against a target of $75 million
— The Group is well positioned to consider capital
management initiatives to improve shareholder
returns, as demonstrated by the on-market share buy-
back which has reduced shares on issue by 3% to date
FY22 saw the Group enter several key strategic
transactions:
— acquisition of the remaining 50% of the Flagstone City
(Qld) project;
— securing the acquisition of 100% of the University of
Canberra (ACT) project;
— the sale of the New Beith (Qld) landholding; and
— securing two development management agreements
with Renewal SA on two inner city sites in Adelaide,
South Australia.
17 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash) / (Total assets less cash, less intangible assets).
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“Subject to market conditions and the timing
of settlements, the Group is well-positioned for
further earnings growth in FY23, supported by
substantial contracts on hand, full ownership
of the Flagstone City (Qld) project and new
project commencements. We expect that FY23
earnings will be skewed to 1H23 due to the
settlement profile of contracts on hand.”
As mentioned in the Chairman’s Review, these
transactions have accelerated the delivery of the
Group’s strategy, whilst strengthening the balance
sheet and supporting earnings growth.
Expansion of the Group’s built form business and
a shift to focus on more desirable urban areas has
resulted in broadening our buyer appeal. Whilst the
first home buyer segment remains a core market, the
increase in sales to second and subsequent home
buyers, builders and investors allows the business to
reach a much larger and diversified customer base.
ESG Commitment
Over many years, the Group has maintained our
commitment to sustainability with an approach
of focusing on sustainable practices to create long-
term shared value for our communities, shareholders
and people.
In FY22, Peet entered a three-year partnership with
Black Dog Institute, a mental health research provider
that focuses on providing mental health support across
the lifespan. The partnership provides a platform for
Peet to support the wellbeing of both residents in our
communities and our team.
Peet continued our successful partnership with the
Perth Scorchers as Principal Partner of the men’s
and women’s teams. The partnership delivers strong
community benefits, providing our younger residents
with unique opportunities to learn new cricket skills
and meet Perth Scorchers players through our cricket
workshops and fan days.
Across a broad range of environmental initiatives
delivered for the year, a significant milestone was
achieved at Brabham Estate in WA as it was accredited
a 6-star World Leading Green Star community and Gold
Waterwise development. In August 2022, the estate
also launched Australia’s highest-rated sustainable two-
storey display home, built by Green Homes Australia.
The demonstration home will educate potential buyers
on how they can integrate sustainable features in their
home to reduce their footprint and achieve cost savings
over the life of the home.
Our sustainability initiatives along with our People and
Culture strategy put our people and our communities
at the heart of all that we do. This commitment
not only drives positive social and environmental
outcomes, it also ensures we remain a trusted partner
and sustainable business for the long-term.
Outlook
The Group is well-positioned heading into FY23, with
underlying drivers of the residential market remaining
supportive, a strong labour market, and expected
population growth amidst constrained land supply.
While further interest rate increases are expected to
lead to a moderation of demand and pricing over the
next 12 months, the rate of construction escalation is
also expected to moderate.
The Group has a strong pipeline of new projects in
the mid-term to support future earnings. FY23 is
expected to be a year focused on the delivery of the
significant number of land lots and townhouses sold
during FY22 and monetising the contracts on hand as
at 30 June 2022.
Subject to market conditions and the timing of
settlements, the Group is well-positioned for further
earnings growth in FY23, supported by substantial
contracts on hand, full ownership of the Flagstone
City (Qld) project and new project commencements.
We expect that FY23 earnings will be skewed to 1H23
due to the settlement profile of contracts on hand.
Thanks
I would like to thank Chairman Tony Lennon and our
board for their continued support and contribution.
Thank you also to the management team and staff for
their commitment and focus which has contributed to
this strong FY22 result.
Lastly, thank you to our loyal shareholders, customers
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
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Image: Rochedale Townhouses, QLD (Artist’s Impression)
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.
45%
of EBITDA18,19
COMPRISED20
59%
OF GROUP’S
LAND BANK
23,162 lots21
GDV22
$8.3 billion
LOTS SOLD23
LOTS SETTLED23
CONTRACTS
ON HAND23
FY22
1,022
Gross value of
$433.6 million
FY22
655
Gross value of
$208.2 million
FY22
623
Gross value of
$320.8 million
FY21
531
Gross value of
$166.2 million
FY21
484
Gross value of
$129.2 million
FY21
256
Gross value of
$95.4 million
EBITDA24
FY22
43.8 million
FY21
$21.8 million
EBITDA
MARGIN24
FY22
22%
FY21
16%
Includes equivalent lots.
23
24 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and
joint ventures.
18 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
19 Before inter-segment transfers and other unallocated items.
20 By number of lots.
21
Includes equivalent lots.
22 Gross Development Value.
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Image: Fort Largs, SA (Artist’s Impression)
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.
35%
of EBITDA25,26
COMPRISED27
36%
OF GROUP’S
LAND BANK
LOTS SOLD30
LOTS SETTLED30
CONTRACTS
ON HAND30
FY22
1,513
Gross value of
$414.3 million
FY22
1,338
Gross value of
$317.1 million
FY22
1,229
Gross value of
$350.1 million
FY21
1,613
Gross value of
$406.0 million
FY21
1,732
Gross value of
$394.4 million
FY21
1,054
Gross value of
$252.8 million
EBITDA31
FY22
$33.7 million
FY21
$29.2 million
EBITDA
MARGIN31
FY22
70%
FY21
69%
14,231 lots28
Includes equivalent lots.
30
31 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates.
25 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates.
26 Before inter-segment transfers and other unallocated items.
27 By number of lots.
28
Includes equivalent lots.
29 Gross Development Value.
Image: Elavale Eglinton, WA
GDV29
$4.3 billion
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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.
20%
of EBITDA32,33
LOTS SOLD37
LOTS SETTLED37
CONTRACTS
ON HAND37
FY22
628
Gross value of
$209.8 million
FY22
521
Gross value of
$149.0 million
FY22
745
Gross value of
$259.1 million
FY21
998
Gross value of
$286.6 million
FY21
764
Gross value of
$216.3 million
FY21
638
Gross value of
$198.4 million
EBITDA38
FY22
$19.6 million
FY21
$18.3 million
EBITDA
MARGIN38
FY22
50%
FY21
35%
Includes equivalent lots.
37
38 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in joint ventures.
COMPRISED34
5%
OF GROUP’S
LAND BANK
1,983 lots35
GDV36
$822 million
32 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in joint ventures.
33 Before inter-segment transfers and other unallocated items.
34 By number of lots.
35
Includes equivalent lots.
36 Gross Development Value.
Image: Eden’s Crossing, QLD
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OUR COMMITMENT
TO SUSTAINABILITY
Our Sustainability Approach:
As a leading residential developer with a national
footprint, our approach focuses on sustainable practices
to create long-term shared value for our communities,
shareholders and people.
Our Purpose:
DEFINING FUTURE PLACES OF
belonging
ENVIRONMENT
SOCIAL
GOVERNANCE
Environmentally
conscious
development
Positive social impact
in our communities
and team
A trusted partner
and sustainable
business
− Water conservation
and recycling.
− Use of solar and energy
reduction in building
design.
− Long history of operating
in highly environmentally
regulated industry.
− Biodiversity and
land restoration.
− Employee diversity,
wellbeing and
engagement.
− Building strong
community partnerships.
− Providing opportunities
for affordable housing
for homebuyers.
− Ethical and responsible
business practices.
− Robust risk management
framework.
− Board Charter and
Corporate Governance
Statement.
Green Accreditation At Brabham Estate
The vision for Brabham Estate, located in Perth’s north-
east, is to create a sustainable community that prioritises
reducing waste by reusing and recycling materials,
retaining existing bushland, investing in alternative water
solutions and exploring eco-friendly technology that will
help to reduce residents' reliance on the grid and reduce
their emissions.
In recognition of the project’s sustainability credentials,
in 2021 Brabham was awarded a 6 Star ‘Green Star
Communities’ certification by the Green Building
Council of Australia, which is an internationally-
recognised sustainability rating system and represents a
World Leading Sustainable Development.
In a further commitment to educating customers about
sustainable living choices, a 9.2 NatHERS rated double
storey display home has been built within the Brabham
Display Village. Rated Australia’s most sustainable
two-storey home, the display built by Green Homes
Australia aims to showcase how customers can reduce
their household living costs by incorporating sustainable
choices and smart technology in their build.
Brabham Estate
is developed in
partnership with
Development WA.
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Prioritising Mental Health Through
Partnership with Black Dog Institute
As part of our ongoing commitment to creating a positive
impact on health and wellbeing in our communities and our
workplace, Peet is pleased to have entered into a three-
year partnership with Black Dog Institute, an independent
not-for-profit medical research institute delivering research
to help treat, manage and prevent mental illness.
Research has shown that 1 in 5 Australians will experience
symptoms of mental illness in any given year but 3 in 5 of
these people won’t seek help. The research and programs
that Black Dog Institute delivers are vital in understanding,
preventing and treating mental illness in the community.
Through the partnership, Peet will support the
following initiatives:
Futureproofing Study
— This is a ground-breaking study which aims to prevent
depression and anxiety in young people by using
smartphones to deliver preventative interventions
on a large scale. Peet’s funding will provide capacity
to deliver follow up face-to-face sessions with
participating students to assist in understanding the
development of adolescent mental health.
Reflect Reconciliation Action Plan
Peet is pleased to be progressing the development of our
Reflect Reconciliation Action Plan (RAP) in line with our
commitment to have it in place by July 2023.
To outline Peet’s commitment to embedding a relevant,
consistent and culturally sensitive approach to all our work
across Australia, we have commenced the development
of a Cultural Compact. Our Cultural Compact will inform
the way in which we move forward respectfully with First
Nations people.
We recognised the need to be “patient and respectful” as
we continue on our reconciliation journey. These words
were advice received from respected Nyoongar Elder, Dr
Richard Walley OAM, who has agreed to guide Peet as our
cultural advisor.
At Peet’s Jumping Creek project in NSW, Dr Matilda
House, a respected Ngambri-Ngunnawal Elder, led
a private smoking ceremony recently, recognising
the importance of the Traditional Custodians ongoing
connection to the land. Joined by Dr House’s niece, our
project contractors and Peet team members, the ceremony
Community Education Sessions
— Peet will support education sessions, facilitated by
Black Dog Institute, in communities around the country
giving participants the tools to talk openly about
mental health and receive the support they need.
Workplace Education Sessions
— Facilitated by Black Dog Institute, Peet will be rolling
out education sessions across the workplace, focusing
on building mental health literacy and reducing stigma
around the issue, in addition to providing support to
managers to have conversations with their team about
mental health.
One Foot Forward Challenge
— The Peet team will be getting involved during
Mental Health Awareness month in October 2022, by
participating in Black Dog Institute’s national walking
challenge to raise funds for mental health research.
was held in advance of the collection of Aboriginal
artefacts located on the site being collected and logged in
accordance with Heritage NSW requirements, and prior to
civil works commencing.
Shared Equity Scheme at Fort Largs
Peet has a long history of partnering with government
to deliver affordable housing options to homebuyers,
providing them with the opportunity to live in a quality
home within a thriving community.
At Fort Largs in South Australia, Peet is partnering with
HomeStart SA and the State Government HomeSeeker
program to prioritise affordable housing for low income
earners and enable increased borrowing capacity with an
interest-free loan.
In the first release, customers were offered the
opportunity to secure an architecturally designed home in
The Heritage Collection, a range of 2 bedroom, 2 bathroom
homes inspired by the heritage of the location and the
adjacent historic Drill Hall.
To assist potential buyers with understanding the
process for accessing the shared equity scheme, an
online information session was held hosted by Peet with
representatives from HomeSeeker SA and HomeStart
Finance in attendance.
Positive Environmental Outcomes
at Bluestone Mt Barker
Peet is committed to leaving a sustainable legacy at
Bluestone, Mt Barker through the major upgrade of the
wetlands system running through the development.
The $2 million program of works includes a substantial
expansion and upgrade to the wetlands system which
not only provides a wonderful community asset, but also
improves water quality, reduces runoff and supports the
regeneration of indigenous flora. The wetlands include:
— A deep inlet pond that slows incoming water to allow
fine suspended solids to settle out.
— Marsh zones with a system of meandering shallow
and deep habitat pools for wildlife.
— Extended detention that holds water back while it is
treated to improve clarity.
— Natural and soft design principles incorporating
25,500 local indigenous plants.
— A looped walking trail, break-out spaces for
ecological interaction, picnic settings, and new
proposed facilities.
Peet has committed to delivering a minimum of
15% affordable housing through the Government
HomeSeeker SA initiative at Fort Largs.
Sustainability is at the fore at Bluestone, Mt Barker with a
range of initiatives focusing on water and waste throughout
the development, including:
— The introduction of tree pits that direct runoff from
roads to street trees for passive irrigation, infiltration
and water treatment.
— Recycled water infrastructure installed for irrigation of
public open space, encouraging sustainable resource
management.
— Rainwater tanks plumbed for internal use to encourage
rainwater reuse.
— The introduction of a 3-bin collection system of
recycling, green waste and rubbish to encourage
refuse sorting at the source.
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CORPORATE CALENDAR FY23
5 July 2022
Interest payment date for
Peet Bond holders (PPCHB)
7 December 2022
Interest payment date for unlisted
notes issued in 2019
25 August 2022
Release of results for the year
ended 30 June 2022
3 January 2023
Interest payment date for unlisted
notes issued in 2021
19 September 2022
Record date for FY22 final dividend
of $0.04 per share
February 2023
Release of results for the half-year
ending 31 December 2022
23 September 2022
Annual Report and Notice of 2022
AGM dispatched to shareholders
31 March 2023
Interest payment date for unlisted
notes issued in 2021
30 September 2022
Interest payment date for unlisted
notes issued in 2021
7 June 2023
Interest payment date for unlisted
notes issued in 2019
30 June 2023
Interest payment date for unlisted
notes issued in 2021
5 October 2022
Maturity date for Peet Bonds
(PPCHB)
14 October 2022
Payment date for FY22 final
dividend of $0.04 per share
26 October 2022
2022 AGM
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Image: Tonsley Village, SA
Financials
2022
Contents
Directors’ Report ............................................................................................................................................................... 29
Auditor’s Independence Declaration ................................................................................................................................. 57
Corporate Governance Statement .................................................................................................................................... 58
Financial Report ................................................................................................................................................................ 59
Directors’ Declaration ........................................................................................................................................................ 97
Independent Auditor’s Report to the Members of Peet Limited ...................................................................................... 98
Securityholder Information ............................................................................................................................................. 105
Corporate Directory ......................................................................................................................................................... 108
Directors’ Report
Year ended 30 June 2022
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 2022 (“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:
ANTHONY WAYNE LENNON (TONY),
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 President of The Real Estate Institute of
Western Australia and 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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Directors’ Report
Year ended 30 June 2022
1. DIRECTORS continued
ANTHONY JAMES LENNON (ANTHONY),
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, working for major international construction
and development company, John Laing PLC. His time with this global company saw him gain valuable experience in
property planning, marketing, feasibility analysis 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, Mr Lennon was Peet Limited’s National Business
Development Director.
He is Chairman 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 zero interest mortgages.
TREVOR ALLEN,
BComm (Hons), CA, FF, FAICD
INDEPENDENT NON-EXECUTIVE DIRECTOR
Trevor Allen joined Peet in April 2012, with almost four decades of experience in the corporate and financial sectors,
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.
As Chief Legal Counsel and a member of the Wesfarmers Executive Committee, Ms Krause led a large legal team and
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 (BOB),
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.
primarily as a corporate and financial advisor to Australian and international public and privately-owned companies.
He is the former Managing Director of Austal Ships and Fleetwood Corporation Limited and spent 28 years with Capral
Mr Allen is a Non-executive Director of Eclipx Group Limited, where he chairs its Audit and Risk Management Committee
Aluminium (formerly Alcan Australia) in various financial and senior executive positions.
and is a member of its Remuneration Committee. He is also a Non-executive Director of TopCo Investments Pte Ltd,
Mr McKinnon is a Director of DGL Group Limited; the former Non-executive Chairman of M8 Sustainable Limited; and
a Singapore company which is the holding company of Real Pet Food Company Limited, where he chairs its Risk and
was previously a Non-executive Director of Bankwest, Brierty Limited, Programmed Maintenance Services Limited
Sustainability Committee and is the Deputy Chair of its Finance and Audit Committee.
During the last three years, Mr Allen was a Director of Freedom Foods Group Limited, retiring from that position in
January 2021.
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.
and Tox Free Solutions Limited.
2. PRINCIPAL ACTIVITIES
The Group acquires, develops and markets residential land, predominantly under a capital-efficient funds management
model.
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 2022, the Group employed 185 people in offices throughout Australia and managed and marketed a land
bank of more than 39,300 lots in the growth corridors of major mainland Australian cities.
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Directors’ Report
Year ended 30 June 2022
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 $52.3 million
• Earnings per share of 10.8 cents per share
• FY22 dividends of 6.25 cents per share, fully franked
• Revenue 4 of $290.7 million, with 2,514 lots settled 6
• EBITDA 5 margin of 30.0% on EBITDA 5 of $86.0 million
• Net cash inflows from operations (before acquisitions) of $80.1 million
• $930.0 million worth of contracts on hand 6 as at 30 June 2022
• Gearing 7 of 29.9%
FINANCIAL COMMENTARY
The Peet Group achieved a record operating profit 2 and statutory profit 3 after tax of $52.3 million for the year ended
30 June 2022 (“FY22”), which represents an increase of 84% on the previous financial year (“FY21”) and is in line
with the Group’s most recent update to the market (July 2022).
The material improvement in profit was driven by price growth across the Group’s developing and selling projects,
combined with the changing product mix and the continued focus on unlocking value by appropriately managing the
Group’s significant landbank. This was supported by continuing favourable market conditions and consumer confidence
during the majority of FY22, especially across the east coast business.
The Group derived EBITDA 5 of $86.0 million during FY22, compared to $58.1 million in FY21, with an EBITDA 5 margin
of 30%, compared to the margin achieved in FY21 of 25%. This margin increase is attributable to revenue increases
from price growth and the ongoing focus on cost management.
The performance has resulted in an operating and statutory earnings per share of 10.8 cents for FY22, compared to
operating and statutory earnings per share of 5.9 cents in FY21.
The Group’s focus on prudent capital management and the strong cash inflows derived has allowed it to release,
develop and construct its products appropriately in response to the demand from customers around the country.
The Group enters FY23 in a strong capital position, with gearing 7 at 30 June 2022 of 29.9% (30 June 2021: 24.8%),
which is at the top end of the Company’s target range of 20% to 30%.
1 Comparative period is 30 June 2021, 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.
Includes statutory revenue of $266.6 million (FY21: $220.3 million) and share of net profits from associates and joint ventures of $24.1 million (FY21: $14.0 million).
3 Statutory profit after tax means net profit measured in accordance with Australian Accounting Standards, attributable to the owners of Peet Limited.
4
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.
The Group achieved 3,163 sales 8 with a gross value of $1.06 billion for the full year across its Funds Management,
Development and Joint Venture projects. The number of sales 8 achieved in FY22 was in line with FY21 (1% increase)
and the gross value was up 23%.
The Group achieved 2,514 settlements 8 with a gross value of $674.3 million for the full year across its Funds
Management, Development and Joint Venture projects. The number of settlements 8 achieved in FY22 compares to
2,980 settlements 8 in FY21 (16% decrease) with a value of $739.9 million.
At 30 June 2022, there were 2,597 contracts on hand 8, with a gross value of $930.0 million, compared with 1,948
contracts on hand 8 with a gross value of $546.6 million at 30 June 2021. This represents an increase of 33% in
contracts on hand 8 and a 70% increase in contract value, providing a strong starting position and visibility for FY23.
Development projects
Key highlights
• 1,022 lots sold 8 for a gross value of $433.6 million, compared with 531 lots sold 8 ($166.2 million) in FY21.
• 655 lots settled 8 for a gross value of $208.2 million, compared with 484 lots settled 8 ($129.2 million) in FY21.
• 623 contracts on hand 8 as at 30 June 2022 with a total value of $320.8 million, compared with 256 contracts on hand 8
($95.4 million) as at 30 June 2021.
• EBITDA 9 of $43.8 million compared with $21.8 million in FY21.
• EBITDA 9 margin of 22% compared with 16% in FY21.
The material increase in settlements, together with price growth and prudent asset management to unlock value
across the Development projects portfolio has contributed to a strong increase in EBITDA 9 performance (up 101%) and
the EBITDA 9 margin during FY22. Additionally, an increase in settlements from the Group’s townhouse business has
contributed positively to the performance of the Development business.
The 92% increase in sales 8 has contributed to the Group’s strong level of contracts on hand 8 in the Development
business at year end. Contracts on hand as at 30 June 2022 are up 143%, with settlements from these contracts
expected to contribute strongly to FY23 earnings.
Funds Management projects
Key highlights
• 1,513 lots sold 8 for a gross value of $414.3 million, compared with 1,613 lots sold 8 ($406.0 million) in FY21.
• 1,338 lots settled 8 for a gross value of $317.1 million, compared with 1,732 lots settled 8 ($394.4 million) in FY21.
• 1,229 contracts on hand 8 as at 30 June 2022 with a total value of $350.1 million, compared with 1,054 contracts
on hand 8 ($252.8 million) as at 30 June 2021.
• EBITDA 9 of $33.7 million compared with $29.2 million in FY21.
• EBITDA 9 margin increased to 70% from 69% in FY21.
While sales and settlements decreased compared to FY21, price growth and the product mix of sales contributed to
the strong EBITDA 9 performance (up 15%) and EBITDA 9 margin from Funds Management projects.
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.
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Directors’ Report
Year ended 30 June 2022
3. REVIEW OF OPERATIONS AND CONSOLIDATED RESULTS continued
Joint Ventures
Key highlights
• 628 lots sold 10 for a gross value of $209.8 million, compared with 998 lots sold 10 ($286.6 million) in FY21.
• 521 lots settled 10 for a gross value of $149.0 million, compared with 764 lots settled 10 ($216.3 million) in FY21.
• 745 contracts on hand 10 as at 30 June 2022 with a total value of $259.1 million, compared with 638 contracts on
hand 10 ($198.4 million) as at 30 June 2021.
• EBITDA 11 of $19.6 million compared with $18.3 million in FY21.
• EBITDA 11 margin of 50% compared with 35% in FY21.
Sales and settlements decreased in FY22 compared to FY21 due to a combination of substantial completion of projects
in FY21 and the timing of new stage releases during FY22. Notwithstanding these decreases, the EBITDA 11 contribution
from Joint Ventures increased (up 7%) on the back of the price growth achieved across the projects located in Qld,
NSW, SA and WA.
Land portfolio metrics
Lot sales 10
Lot settlements 10
Contracts on hand 10 as at 30 June
– Number
– Value
KEY TRANSACTIONS
FY22
3,163
2,514
FY21
3,142
2,980
2,597
1,948
$930.0 million
$546.6 million
Change
1%
(16%)
33%
70%
During FY22 the Group entered into several key transactions that have accelerated the delivery of its strategy, whilst
strengthening the balance sheet and supporting earnings growth. These transactions, which were announced to the
market during FY22 include:
• acquisition of the remaining 50% of the Flagstone City (Qld) project;
• securing the acquisition of 100% of the University of Canberra (ACT) project;
• the sale of the New Beith (Qld) landholding; and
• securing two development management agreements with Renewal SA on two inner city sites in Adelaide,
South Australia.
CAPITAL MANAGEMENT
The Group has a strong balance sheet and sufficient capacity to fund the current portfolio of projects, including
accelerating delivery of product, if required, to meet increases in demand.
During FY22, Peet Limited extended its on-market share buy-back of up to 5% of its issued ordinary shares. As at the
date of this report, the Company had acquired 13.7 million of its ordinary shares, representing approximately 56% of
the total shares to be acquired. On 12 August 2022, the Company announced that the on-market buy-back has been
extended for a further 12 months to 30 August 2023.
Peet’s $50 million PPCHB Bonds mature 5 October 2022. They will be repaid on maturity via cash and available
headroom in the senior debt facility and/or other refinancing options available.
Gearing 15 during FY23 is expected to be above the target range of 20% to 30% due to the level of construction activity
required to deliver on the significant contracts on hand, the acquisition of the balance of the Flagstone City (Qld) project
and the acquisition of the University of Canberra (ACT) project.
DIVIDENDS
Subsequent to year end, the Directors declared a final dividend for FY22 of 4.0 cents per share, fully franked. This brings
the total dividend for FY22 to 6.25 cents per share, fully franked. This compares to the FY21 dividend of 3.5 cents per
share, fully franked. The final FY22 dividend is to be paid on Friday, 14 October 2022, with a record date of Monday,
19 September 2022.
The Directors have resolved to keep the Company’s Dividend Reinvestment Plan deactivated.
RISKS
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.
The Group continues to apply a prudent focus on capital management and during FY22 increased its cash inflows from
The Group’s financial risk management policies are set out in note 17 to the Financial Report.
operations (prior to acquisitions) to $80.1 million.
As at 30 June 2022 it had:
• gearing 12 of 29.9% (30 June 2021: 24.8%); and
• net interest-bearing debt 13 (including Peet Bonds) of $245.2 million, compared with $203.9 million at 30 June 2021.
As at the date of this report, the Group had cash and available debt facility headroom of $205.0 million 14 and a weighted
average debt maturity of more than three years 14.
Particular focus in the short-term continues on managing, and mitigating against, risks associated with rising
development and labour costs and the potential for development programs to be extended.
The property market is cyclical and, while the Group is impacted by fluctuations in the market, it has also proved its
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).
Includes equivalent lots
10
11 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
12 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash)/(Total assets less cash, less intangible assets).
13
14 Including credit approved amendments, including extension of the maturity of the senior debt facility to October 2025, subject to formal documentation.
Including net debt of syndicates consolidated under AASB10.
15
Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash)/(Total assets less cash, less intangible assets).
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Directors’ Report
Year ended 30 June 2022
3. REVIEW OF OPERATIONS AND CONSOLIDATED RESULTS continued
4. EARNINGS PER SHARE
GROUP STRATEGY
Peet is well positioned for growth and value creation with its key strategic focus areas for FY23 and beyond including:
• investing in high quality land in strategic locations across the country:
– balancing the portfolio between land and built form projects;
– continuing to increase the weighting to undersupplied east coast markets;
– considering selective acquisitions to restock the project pipeline where appropriate; and
– focussing on small to mid-sized land projects in the short to medium term;
• enhancing, planning and creating communities and homes with a range of product appealing to all buyer segments:
– accelerating the realisation of embedded margins within the land bank, driven by strong price growth over the
past few years;
• expanding product offering and geographic presence to appeal to a wider variety of customers:
– focussing on increasing the Group’s pipeline of townhouse product; and
– build on the apartment pipeline as opportunities emerge; and
• maintaining strong capital management:
– focussing on improving operating cash flows and reducing debt;
Basic and diluted earnings per share
2022
Cents
10.8
2021
Cents
5.9
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 2022. 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 FY22 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.
7. DIVIDENDS
In August 2021, the Directors declared a final dividend of 2.5 cents per share, fully franked, in respect of the year ended
– positioning the Group to consider capital management initiatives to improve shareholder returns (including a dividend
30 June 2021. The dividend of $12.1 million was paid on Monday, 11 October 2021.
payout ratio of 50% to 60% and the extended on-market share buy-back); and
– continuing to assess opportunities to maximise market cycles to unlock value where appropriate.
Expansion of the Group’s built form business and a shift to focus on more desirable urban areas has resulted in a
broader buyer appeal. The first home buyer segment remains core to Peet, with 40% of FY22 sales being made to
first home buyers, compared to 58% in FY20. The increase in sales to second and subsequent home buyers, builders
and investors allows the business to reach a much larger and diversified customer base.
OUTLOOK
Underlining drivers of the residential market remains supportive, including strong labour market conditions and
population growth combined with constrained land supply.
While further interest rate increases are expected to lead to a moderation of demand and pricing over the next
12 months, the rate of construction cost escalation is also expected to moderate.
Additionally, the expected increase in net overseas migration and further population growth is expected to drive sales
volume growth in the medium term.
FY23 is expected to be a year focused on the delivery of the significant number of land lots and townhouses sold
during FY22 and monetising the contracts on hand as at 30 June 2022.
Peet will be focused on positioning itself for growth through a prudent approach to project delivery and identifying
growth opportunities.
In February 2022, the Directors declared an interim dividend of 2.25 cents per share, fully franked, in respect to the year
then ending 30 June 2022. The dividend of $10.9 million was paid on Thursday, 14 April 2022.
Subsequent to year end, the Directors declared a final dividend for FY22 of 4.0 cents per share, fully franked. This brings the
total dividend for FY22 to 6.25 cents per share. This compares to the FY21 dividend of 3.5 cents per share, fully franked.
The final FY22 dividend is to be paid on Friday, 14 October 2022, with a record date of Monday, 19 September 2022.
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
Subject to market conditions and the timing of settlements, the Group is well-positioned for further earnings growth
GHG emission and energy thresholds per financial year.
in FY23, supported by substantial contracts on hand, full ownership of the Flagstone City (Qld) project and new
project commencements. FY23 earnings are expected to be skewed to the 1H23 due to the settlement profile of
contract on hand.
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 FY22 reporting period.
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Directors’ Report
Year ended 30 June 2022
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 PwC) 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.
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
20
20
20
20
20
20
20
20
19
20
20
18
–
–
6
6
–
6
–
–
6
6
–
5
–
–
4
4
4
4
–
–
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
3
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 A W Lennon and Ms V Krause will retire by rotation and offer themselves for re-election.
Your Board of Directors recommend the re-election of Mr A W Lennon and Ms V Krause.
12. REMUNERATION
Dear Shareholder,
Peet is pleased to present its Remuneration Report for the year ended 30 June 2022. 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
(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.
Peet achieved an operating net profit after tax and a statutory profit after tax of $52.3 million for the 2022 financial year,
compared to an operating net profit after tax and a statutory profit after tax of $28.5 million in the previous year.
While the statutory financial statements show total revenue of $290.7 million and earnings before interest, tax,
depreciation and amortisation (“EBITDA”) of $86.0 million for the 2022 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 $405.2 million and EBITDA of $17.5 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 2022 included:
• The MD’s base pay for the year ended 30 June 2022 was the same as for the previous year, with the MD having
foregone his contractual entitlement to a CPI-based adjustment.
• There were no increases in the base pay of the other KMP, including NEDs, during the year ended 30 June 2022.
• During the year, long-term incentive performance conditions were tested as at 30 June 2021 in respect to the
performance over the three years ended on that date resulting in the partial vesting of performance rights (FY19
performance rights). As disclosed in last year’s Remuneration Report, while the performance conditions were fully
met, the holders of the FY19 performance rights consented to a request from the Remuneration Committee to
reduce the number of FY19 performance rights vesting, resulting in only 60% of the FY19 performance rights vesting.
• Short-term incentives will be paid to KMP in respect of the year ended 30 June 2022, following a positive assessment
of the individual KMP’s performance against a balanced scorecard, which includes consideration of Group financial
and strategic targets. The short-term incentives paid in respect to the year ended 30 June 2022 are included in the
tables on pages 44 and 45.
We encourage our shareholders to use the cash value of remuneration realised table on page 46 to assess the
remuneration outcomes for KMP in the year ended 30 June 2022 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.
The Board is satisfied that these remuneration outcomes for the year ended 30 June 2022 are appropriately performance-
based while at the same time recognising the strategic needs of the Group, and we commend this report to you.
Robert McKinnon
Chairman, Remuneration Committee
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Directors’ Report
Year ended 30 June 2022
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 2022. 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 2022
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 (“FUM”) growth. These performance measures have been used for each
year thereafter and will continue to be used for the 2023 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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Directors’ Report
Year ended 30 June 2022
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 previously 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.
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 2022 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 2022
and 2021 ranged between 50% and 100% of the relevant Executive’s base pay. However, the Board of Directors has
KPIs for the MD are set by reference to the following criteria:
• financial;
• strategy;
• stakeholder engagement;
• people and processes improvements; and
• health, safety and environment.
For the year ended 30 June 2022, the MD was assessed as follows against the KPIs:
Category
Financial
Strategic
Stakeholder
People, processes and culture
Health, safety and environment
Less:
– Amount over 100.00%
Final assessment
Weighting (%)
Achieved (%)
70.00%
10.00%
7.50%
7.50%
5.00%
77.00%
10.00%
7.50%
7.25%
5.00%
100.00%
106.75%
(6.75%)
100.00%
For the year ended 30 June 2021, the MD’s KPIs linked to the STI plan were based on similar criteria. For the year
ended 30 June 2021 the MD was assessed to have been eligible for up to 100% of his maximum STI entitlement.
However, the Board applied its discretion to reduce the MD’s eligibility to 80% of his FY21 STI entitlement.
For the year ended 30 June 2022, the KPIs for Executives were determined by the MD, based on the above criteria.
The Executives were assessed to have been eligible for between 95% and 100% of their maximum STI entitlement
in respect to FY22.
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.
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 2022 and 2021
the discretion to either pay over and above or less than these amounts.
ranged between 50% and 100% of the relevant Executive’s base pay.
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
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
trigger payment of STI. The MD will then generally set the STI KPIs to apply to the other Executives.
in the section titled ‘Share-based compensation’.
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Directors’ Report
Year ended 30 June 2022
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 exercise of vested 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
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Other key management personnel
P J Dumas
D Scafetta
B C Fullarton
Total
2022
2021
2022
2021
2022
2021
2022
2021
218,774
227,993
130,487
140,781
92,517
91,390
115,244
113,841
152,517
151,390
913,732
899,984
1,623,271
1,625,379
460,000
451,917
326,432
322,473
412,500
407,667
1,198,932
1,182,057
–
–
–
–
–
–
–
–
–
–
937,300
749,840
937,300
749,840
276,450
203,700
175,000
157,500
220,000
198,000
671,450
559,200
–
–
–
–
–
–
–
–
–
–
–
–
–
–
191,641
–
–
–
–
–
191,641
–
–
–
–
–
–
–
–
–
–
–
10,000
10,000
10,000
10,000
–
–
–
–
–
–
–
–
21,877
21,659
13,049
13,374
9,252
8,682
11,524
10,815
9,252
8,682
23,568
21,694
88,522
84,906
25,000
25,000
23,568
21,694
27,500
25,000
76,068
71,694
Total 5
$
240,651
249,652
143,536
154,155
101,769
100,072
126,768
124,656
161,769
160,072
1,884,600
1,681,518
2,659,093
2,470,125
953,091
680,617
525,000
501,667
660,000
630,667
2,138,091
1,812,951
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 2021 and June 2022. The Company purchased ordinary shares in the Company on-market on behalf of KMP.
4. Other includes motor vehicle costs, car-parking and other benefits.
5.
In response to COVID-19, KMP agreed to a 20% reduction of their base pay for a period which ended 31 July 2020.
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
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
218,774
227,993
130,487
140,781
92,517
91,390
115,244
113,841
152,517
151,390
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
913,732
937,300
899,984
749,840
1,623,271
937,300
1,625,379
749,840
10,000
10,000
10,000
10,000
Other key management personnel
P J Dumas
D Scafetta
B C Fullarton
Total
2022
2021
2022
2021
2022
2021
2022
2021
460,000
276,450
451,917
203,700
326,432
175,000
322,473
157,500
412,500
220,000
407,667
198,000
1,198,932
671,450
1,182,057
559,200
–
–
–
–
–
–
–
–
21,877
21,659
13,049
13,374
9,252
8,682
11,524
10,815
9,252
8,682
23,568
21,694
88,522
84,906
25,000
25,000
23,568
21,694
27,500
25,000
76,068
71,694
–
–
–
–
–
–
–
–
–
–
1,276,523
638,955
1,276,523
638,955
396,317
198,374
238,336
119,297
299,621
149,973
934,274
467,644
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total 5
$
240,651
249,652
143,536
154,155
101,769
100,072
126,768
124,656
161,769
160,072
3,161,123
2,320,473
3,935,616
3,109,080
1,157,767
878,991
763,336
620,964
959,621
780,640
2,880,724
2,280,595
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. 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.
In response to COVID-19, KMP agreed to a 20% reduction of their base pay for a period which ended 31 July 2020.
5.
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Directors’ Report
Year ended 30 June 2022
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 above
Eligible employees, at the discretion of the Board, may be invited to apply for options and/or PRs on terms and
table are 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
2022
2021
2022
2021
20221
2021 1
100%
100%
100%
100%
100%
30%
42%
46%
46%
100%
100%
100%
100%
100%
40%
54%
56%
56%
–
–
–
–
–
30%
24%
23%
23%
–
–
–
–
–
32%
23%
25%
25%
–
–
–
–
–
40%
34%
31%
31%
–
–
–
–
–
28%
23%
19%
19%
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.
The PESOP and PPRP are designed to provide long-term incentives for employees 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, subject to the ASX Listing Rules, 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 PERFORMANCE RIGHTS
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.
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 4 6
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 47
Directors’ Report
Year ended 30 June 2022
13. REMUNERATION REPORT (AUDITED) continued
NOTE 1
The table below summarises the status of the Company’s options and performance rights granted to Executives:
s
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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 calculated as at 23 November 2016,
29 November 2017, 21 November 2018, 20 November 2019, 19 November 2020 and 16 November 2021, being the dates
of Peet Limited’s, 2016, 2017, 2018, 2019, 2020 and 2021 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
The PRs granted in respect to the three-year period from 1 July 2018 to 30 June 2021 (“FY19 Performance Period”)
and 1 July 2019 to 30 June 2022 (“FY20 Performance Period”) are convertible to ordinary shares on a 1:1 basis, with
40% subject to the FUM growth vesting condition.
The PRs granted in respect to the three-year period from 1 July 2020 to 30 June 2023 (“FY21 Performance Period”)
and 1 July 2021 to 30 June 2024 (“FY22 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 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%
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.
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 4 8
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 4 9
Directors’ Report
Year ended 30 June 2022
13. REMUNERATION REPORT (AUDITED) continued
The Group achieved FUM growth below the target for the FY20 Performance Period and, as such, in accordance with
their current terms, none of the FY20 PRs subject to the FUM growth condition have satisfied that condition. However,
the Board is of the view that this is not indicative of the strong performance of Management during this period. On that
basis, Peet applied to ASX for, and was granted, a waiver from ASX Listing Rule 6.23.3 to the extent necessary to permit
the Board to vary the terms of the FY20 PRs subject to the FUM growth condition to vest at a higher percentage level
than would otherwise vest under the terms of those PRs. This waiver from ASX is subject to Peet obtaining shareholder
approval and the notice of AGM for such shareholder approval including explanatory information satisfactory to ASX,
including, at a minimum, a clear explanation of the rationale for the proposed amendment. Peet is proposing to seek such
shareholder approval at the 2022 AGM. The FUM growth-related FY20 PRs remain unvested as at the date of this report.
For the FY21 and FY22 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 $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 FY21 and FY22 PRs remain unvested.
NOTE 4
The PRs granted in respect to the FY19 and FY20 Performance Periods are convertible to ordinary shares on a 1:1 basis,
with 60% subject to the EPS growth vesting condition.
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 Group achieved EPS growth of 35.2% for the FY20 Performance Period, compared to the EPS growth target of 5%
for the period. The Board has therefore resolved that 100% of the FY20 PRs subject to the EPS growth condition have
vested in accordance with their terms.
The FY21 and FY22 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
–
–
–
–
–
–
–
–
–
–
5,627,692
892,667
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(348,116)
6,172,243
3,137,025
Directors
A W Lennon
T J Allen
V Krause
R J McKinnon
A J Lennon
B D Gore
The PRs granted in respect to the FY21 and FY22 Performance Periods are convertible to ordinary shares on a 1:1 basis,
Other key management personnel
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%
P J Dumas
D Scafetta
B C Fullarton
1,643,752
627,815
1,039,254
277,143
166,667
209,524
(178,067)
(108,078)
1,634,750
–
–
(64,996)
(81,708)
729,486
1,167,070
692,417
162,790
454,653
1.
Includes performance rights for which performance conditions were not met for the performance period.
During the year ended 30 June 2022, 904,344 PRs (2021: 605,709) had vested and 178,067 (2021: NIL) were exercised
by KMP at $ Nil exercise price. In order to settle the PRs exercised during year ended 30 June 2022, the Company
purchased ordinary shares in the Company on-market on behalf of KMP.
On 16 November 2021, 892,667 FY22 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.
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 2021 AGM and who was not named in the
Notice of AGM will not participate until approval is obtained under ASX Listing Rule 10.14.
Since 30 June 2022, 1,351,888 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.
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Directors’ Report
Year ended 30 June 2022
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%
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
2022
52,316
83.6%
52,316
83.6%
10.83
83.6%
10.83
83.6%
6.25
0.94
Cash Bonus
Options & Performance Rights
Paid/
payable
%
Forfeited/
deferred
%
Financial year
Granted
Vested 1
%
Forfeited 2
%
Financial years
in which
options/PRs
may vest
Maximum total
Value of grant
yet to expense
$
Other key management personnel
P J Dumas
95%
5%
D Scafetta
100%
0%
B C Fullarton
100%
0%
2022
2021
2020
2019
2022
2021
2020
2019
2022
2021
2020
2019
–
–
–
–
–
–
60%
40%
–
–
–
–
–
–
60%
40%
–
–
–
–
–
–
60%
40%
2024
2023
2022
2021
2024
2023
2022
2021
2024
2023
2022
2021
205,779
142,280
–
–
123,750
85,564
–
–
155,572
107,565
–
–
(15.1%)
(13.4%)
23.7%
(21.7%)
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 PERFORMANCE RIGHTS
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 (and ASX Listing Rules, as applicable) 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 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
–
–
–
–
–
–
–
–
–
–
100%
0%
–
–
–
–
–
2022
2021
2020
2019
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
60%
40%
–
–
–
–
–
2024
2023
2022
2021
–
–
–
–
–
662,805
458,277
–
–
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 2022.
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
40%
34%
31%
31%
883,740
274,372
165,000
207,429
–
257,532
–
–
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.
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Directors’ Report
Year ended 30 June 2022
13. REMUNERATION REPORT (AUDITED) continued
14. INDEMNITY OF OFFICERS AND AUDITORS
VOTING AND COMMENTS MADE AT THE COMPANY’S 2021 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 2021
Remuneration Report were as follows:
For
204,276,127
99.76%
Against
442,727
0.22%
Proxy’s discretion
46,638
0.02%
Abstain
153,957
The motion was carried as an ordinary resolution on a poll.
INTERESTS IN THE SHARES AND BONDS OF THE COMPANY
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
Bonds
Other
changes
during the
year
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
178,067
–
–
–
–
–
–
–
–
450,000
97,764,685
50,000
142,054
1,875
1,500
–
(1,500)
–
–
–
–
–
–
–
–
50,000
5,306,679
1,331,344
1,265,949
1,020,000
603,850
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Balance at
the end of
the year
1,875
–
–
–
–
–
–
–
–
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.
Since 30 June 2022, 1,351,888 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)
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Directors’ Report
Year ended 30 June 2022
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.
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
24 August 2022
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Corporate Governance Statement
Year ended 30 June 2022
A copy of the Group’s corporate governance policies and practices in place during
the financial year ended 30 June 2022 is available at the following link:
https://www.peet.com.au/-/media/peet/documents/corporate/corporate/corporate-
governance/22082551ppc2022corporategovernancestatement.pdf
Unless otherwise stated, these are consistent with the 4th edition of the
ASX Corporate Governance Council’s Principles and Recommendations.
Financial
Report
Contents
Consolidated Statement of Profit or Loss and Other Comprehensive Income ................................................................ 60
Consolidated Balance Sheet ............................................................................................................................................. 61
Consolidated Statement of Changes in Equity ................................................................................................................. 62
Consolidated Statement of Cash Flows ............................................................................................................................ 63
Notes to the Consolidated Financial Statements .............................................................................................................. 64
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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
24 August 2022. 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
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the year ended 30 June 2022
Consolidated Balance Sheet
As at 30 June 2022
Revenue
Expenses
Finance costs (net of capitalised borrowing costs)
Share of net profit of associates and joint ventures
Profit before income tax
Income tax expense
Profit for the year
Attributable to:
Owners of Peet Limited
Non-controlling interests
Profit for the year
Notes
5
6
6
10
8
2022
$’000
266,608
(215,624)
(3,085)
24,095
71,994
(19,913)
52,081
52,316
(235)
52,081
2021
$’000
220,267
(188,720)
(5,342)
14,033
40,238
(12,153)
28,085
28,500
(415)
28,085
Total comprehensive income for the year
52,081
28,085
Earnings per share for profit attributable to the ordinary equity holders of the Company
Basic and diluted earnings per share
Notes
7
Cents
10.83
Cents
5.90
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
Land vendor liabilities
Borrowings
Lease liabilities
Other financial liabilities
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
13
14
17
17
17
15
14
17
17
10
8
15
18
18
2022
$’000
55,380
23,046
19,871
205,400
303,697
41,977
–
451,693
188,006
2,938
2,507
1,922
689,043
992,740
27,679
14,808
49,935
1,958
–
10,028
17,397
121,805
19,554
250,683
1,766
3,162
17,630
13,031
305,826
427,631
565,109
374,733
584
168,173
543,490
21,619
565,109
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
–
264,430
3,723
–
15,286
13,233
296,672
357,203
532,595
378,916
(1,449)
138,814
516,281
16,314
532,595
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The above consolidated balance sheet should be read in conjunction with the accompanying notes.
Consolidated Statement of Changes in Equity
For the year ended 30 June 2022
Consolidated Statement of Cash Flows
For the year ended 30 June 2022
Contributed
equity
$’000
Reserves
$’000
Retained
profits
$’000
Notes
Total
$’000
Non-
controlling
interest
$’000
Total
equity
$’000
378,916
(2,557)
119,980
496,339
16,729
513,068
Balance at 1 July 2020
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
Balance at 1 July 2021
Profit for the year
Other comprehensive income
Total comprehensive income for the year
Share buyback, including transaction costs
Share-based payments
Vesting of performance rights
Transactions with non-controlling interest
Dividends paid
Balance at 30 June 2022
18
18,25
18
18
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
378,916
(1,449)
138,814
516,281
16,314
532,595
–
–
–
(4,183)
–
–
–
–
374,733
–
–
–
–
3,323
(635)
(655)
–
584
52,316
52,316
(235)
52,081
–
–
–
–
52,316
52,316
(235)
52,081
–
–
–
–
(4,183)
3,323
(635)
(655)
–
–
–
5,540
(4,183)
3,323
(635)
4,884
(22,957)
(22,957)
–
(22,957)
168,173
543,490
21,619
565,109
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Payments for purchase of land
Interest and other finance costs paid
Distributions and dividends received from associates and joint ventures
Interest received
Income tax paid
Net cash inflow from operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Payments for investment in associates and joint ventures
Payment for acquisition of Peet Flagstone City Pty Ltd (net of cash acquired)
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 (outflow)/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
Proceeds from share issue to non-controlling interest (net of transaction costs)
Share buy back (including transaction costs)
Net cash outflow from financing activities
Net (decrease)/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
Notes
2022
$’000
2021
$’000
20
276,715
(177,363)
(33,917)
(21,593)
16,210
21
(13,877)
46,196
(1,163)
(13,766)
(14,908)
4,663
(650)
4,975
(20,849)
(22,957)
(122,635)
112,500
–
–
(1,797)
4,931
(4,134)
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)
–
–
(34,092)
(26,603)
(8,745)
64,125
55,380
17,287
46,838
64,125
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
CONTENTS
BASIS OF REPORTING
1. Reporting entity .......................................................................................................................................................... 65
2. Basis of preparation .................................................................................................................................................... 65
3. How to read the financial report ................................................................................................................................. 67
PERFORMANCE FOR THE YEAR
4. Segment information .................................................................................................................................................. 68
5. Revenue ...................................................................................................................................................................... 70
6. Expenses .................................................................................................................................................................... 71
7. Earnings per share ...................................................................................................................................................... 71
8. Taxes ........................................................................................................................................................................... 72
OPERATING ASSETS AND LIABILITIES
9.
Inventories .................................................................................................................................................................. 74
10. Investments accounted for using the equity method ................................................................................................ 74
11. Receivables ................................................................................................................................................................. 77
12. Contract assets ........................................................................................................................................................... 77
13. Payables ...................................................................................................................................................................... 78
14. Land vendor liabilities ................................................................................................................................................. 78
15. Provisions ................................................................................................................................................................... 78
16. Interests in joint operations ........................................................................................................................................ 79
CAPITAL MANAGEMENT
17. Financial liabilities ....................................................................................................................................................... 80
18. Contributed equity and reserves ................................................................................................................................ 84
19. Dividends .................................................................................................................................................................... 85
20. Reconciliation of profit after income tax to net cash outflow from operating activities ............................................ 85
BASIS OF REPORTING
A. GOING CONCERN BASIS
This section of the financial report sets out the basis of
$303.7 million, current liabilities of $121.8 million, cash
preparation of the consolidated financial statements.
and available headroom in its senior bank debt facility of
Where an accounting policy is specific to one note, the
$136.5 million. Further, for the year ended 30 June 2022
policy is described in the note to which it relates.
the Group generated operating cash flows of $80.1 million
At 30 June 2022, the Group had current assets of
before land acquisitions.
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
On 5 July 2017, Peet Limited issued 500,000 Series 2,
Tranche 1 bonds with a face value of $100 per bond (the
Bonds). The Bonds are unsecured and interest bearing at a
floating interest rate of BBSW plus 4.65% with a maturity
date of 5 October 2022. As such the Bonds are classified
as a current liability on the Group’s balance sheet at 30
in Australia. Its registered office and principal place of
June 2022.
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:
Subsequent to 30 June 2022 Peet Limited has received
confirmation from its senior banks that they have credit
approval for an increase of $100 million in the senior
bank debt facility limit. This variation is in the process of
being formally documented. Peet is assessing several
alternatives including utilising senior debt facility capacity
and/or raising new debt from existing or new sources to
refinance the Bonds. Given the approved increase in the
• has been prepared in accordance with Australian
senior bank debt facility limit, together with the existing
Accounting Standards and Interpretations issued by
cash and available headroom in its senior bank debt facility
the Australian Accounting Standards Board and the
and the other options available, the Directors are confident
Corporations Act 2001;
• complies with International Financial Reporting
Standards (IFRS) as issued by the International
Accounting Standards Board (IASB);
• has been prepared under the historical cost convention,
except for derivative financial instruments and financial
the Group will be able to repay the Bonds by the maturity
date. As such, it is appropriate to prepare the financial
statements on a going concern basis.
21. Fair value measurement ............................................................................................................................................. 86
assets which have been measured at fair value;
OTHER NOTES
22. Remuneration of auditors ........................................................................................................................................... 87
23. Contingencies and commitments .............................................................................................................................. 87
• provides comparative information in respect of the
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 ................................................................................................... 87
ASIC Corporations Instrument 2016/191.
25. Share-based payments ............................................................................................................................................... 90
26. Matters subsequent to the end of the financial year ................................................................................................. 92
27. Other accounting policies ........................................................................................................................................... 93
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Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
2. BASIS OF PREPARATION continued
C. ASSOCIATES
D. INVESTMENTS IN JOINT ARRANGEMENTS
F. CHANGES IN ACCOUNTING POLICIES
B. PRINCIPLES OF CONSOLIDATION
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
recognise further losses, unless it has incurred obligations
or made payments on behalf of the associate.
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.
The consolidated financial statements comprise the
financial statements of the Group and the entities it
controlled at the end of, or during the year ended 30 June
2022. The Group controls an investee if and only if the
Group has:
• 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 comprehensive
income from the date the Group gains control until the date
the Group ceases to control the subsidiary.
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
deficit balance. All intra-group assets and liabilities, equity,
income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on
consolidation.
Joint arrangements are arrangements of which two or more
The accounting policies adopted in the preparation of the
parties have joint control. Joint control is the contractual
financial report are consistent with those followed in the
agreed sharing of control which exists only when decisions
preparation of the Group’s annual financial statements
about the relevant activities require unanimous consent
for the year ended 30 June 2021, except for changes
of the parties sharing control. Joint arrangements are
arising from the adoption of new and amended accounting
classified as either a joint operation or joint venture, based
standards and interpretations effective as at 1 July 2021.
on the rights and obligations arising from the contractual
obligations between the parties to the arrangement.
Several other amendments and interpretations apply for
the first time on 1 July 2021, but do not have a material
To the extent the joint arrangement provides the Group
impact on the Group. The Group has not early adopted
with rights to the individual assets and obligations arising
any standard, interpretation or amendment that has been
from the joint arrangement, the arrangement is classified
issued but is not yet effective.
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
3. HOW TO READ THE FINANCIAL REPORT
The notes to the financial statements are set out in four
specific sections:
• Performance for the year
• Operating assets and liabilities
• expenses, including its share of any expenses
• Capital management
incurred jointly.
• Other notes
To the extent the joint arrangement provides the Group with
rights to the net assets of the arrangement, the investment
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.
Where an accounting policy is specific to one note, the
policy is described in the note to which it relates.
Key estimates are described in the following notes:
• Note 5 – constraints on project management & selling
fees and estimates on percentage completion
E. CHANGES IN OWNERSHIP INTERESTS
The Group
treats
transactions with non-controlling
• Note 8 – deferred tax assets
• Note 9 – net realisable value
interests that do not result in a gain or loss of control as
• Note 11 – ECL allowance
transactions with equity owners of the Group. A change
in ownership interest results in an adjustment between
the carrying amounts of the controlling and non-controlling
interests to reflect their relative interests in the subsidiary.
Any difference between the amount of the adjustment
to non-controlling interests and any consideration paid or
received is recognised in a separate reserve within equity
attributable to owners of Peet Limited.
• Note 21 – fair value estimation
Financial risks and its management are detailed in the
respective notes it pertains to. The Group’s activities
expose it to financial risks including (note 17):
• 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.
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 6 6
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 67
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
PERFORMANCE FOR THE YEAR
FUNDS MANAGEMENT
This section focuses on the results and performance of
with external capital providers. Peet and/or the external
Peet enters into asset and funds management agreements
the 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
been identified as the executive management group.
The executive management group assesses
the
performance of the operating segments based on multiple
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
charges amortised through cost of sales) and tax (“EBIT”)
and profit after tax.
The share of profits from associates and joint ventures is
included as segment revenue as it is treated as revenue for
internal reporting purposes.
The Group operates only in Australia.
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
The executive management group considers the business
share of the profits.
to have the following reportable business segments:
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.
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PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 6 8
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 69
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
5. REVENUE
SALE OF LAND AND BUILT FORM
Revenue from related parties included above:
Related party expenses
2022
$’000
2021
$’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.
Revenue from contracts with
customers
– Sales of land and built form
– Project management and
selling services
Other income
213,331
47,923
5,354
266,608
162,490
50,848
6,929
220,267
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.
PROJECT MANAGEMENT
Project management represents a single performance
obligation that is satisfied over time for the oversight
and management of the development. The consideration
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.
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.
2022
$’000
2021
$’000
Revenue from related parties ¹
Associates
Project management and selling services
32,949
Syndicate administration services
1,174
32,498
1,429
Joint arrangements
Project management and selling services
3,786
37,909
4,967
38,894
1. Refer to note 3 for how information on related party transactions is disclosed.
6. EXPENSES
KMP remuneration 1
Short-term employee benefits
Post-employment benefits
Share-based payments
2022
$’000
4,441
165
2,211
6,817
2021
$’000
4,126
157
1,107
5,390
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
during the year (cost of sales).
2022
$’000
2021
$’000
BORROWING COSTS
Profit before income tax includes
the following specific expenses:
Borrowing costs incurred for the construction of any
qualifying asset are capitalised during the period of time
Land and development costs
141,275
121,770
that is required to complete and prepare the asset for its
Net realisable value adjustments
Amortised interest and finance expense
1,941
8,499
–
intended use or sale. Other borrowing costs are expensed
9,480
in the period they are incurred. The capitalisation rate used
Total land and development cost
151,715
131,250
Depreciation 1
– Right-of-use assets
– Property, plant and equipment
Amortisation
1,341
956
167
1,341
849
806
Total depreciation and amortisation
2,464
2,996
to determine the amount of finance costs to be capitalised
is the weighted average interest rate applicable to the
Group’s outstanding borrowings during the year (refer
note 17).
7. EARNINGS PER SHARE
30,887
15,294
15,264
61,445
25,482
15,909
13,083
54,474
215,624
188,720
Profit attributable to the ordinary
equity holders of the Company
($’000)
Weighted average number of
ordinary shares used as the
denominator in calculating basic
earnings per share
Basic and diluted earnings per
share (cents)
2022
52,316
2021
28,500
483,029,946
483,300,489
10.83
5.90
7,814
318
5,418
432
11,790
15,700
(16,837)
(16,208)
There are 1,200,000 options excluded from the calculation
of diluted earnings per share as they are anti-dilutive. They
could potentially dilute basic earnings per share in the future.
Refer note 25 for the number of Performance Rights (PRs)
outstanding at 30 June 2022. These PRs are contingently
issuable shares and accordingly not included in diluted
3,085
5,342
earnings per share.
Employee benefits expense 2
Project management, selling and other
operating costs
Other expenses
Total other expenses
Total expenses
Finance costs
Interest and finance charges
– Bank borrowings
– Lease liabilities
Interest on corporate bonds
Amount capitalised
Total finance costs
1. Refer to note 27 (b), (c) and (d) for accounting policies.
2. Refer to note 27 (e) for accounting policies.
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 70
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 71
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
8. TAXES
A. INCOME TAX EXPENSE
Major components of tax expense
Current income tax expense
Current tax
Adjustments for prior periods
Deferred income tax expense
Deferred tax
Adjustments for prior periods
Deferred income tax expense included
in income tax expense comprises:
2022
$’000
2021
$’000
17,566
(32)
17,534
2,322
57
2,379
19,913
10,031
1,399
11,430
2,135
(1,412)
723
12,153
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.
Deferred tax assets are recognised for deductible
temporary differences and unused tax losses only if it is
Increase in deferred tax assets
(516)
(1,262)
probable that future taxable amounts will be available to
utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is
a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the
same taxation authority.
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. Utilisation of the tax losses also depends
on the ability of the entity, to satisfy certain tests at
the time the losses are recouped.
Increase in deferred tax liabilities
Tax reconciliation
Profit before income tax
Tax at Australian tax rate of 30%
2,895
2,379
1,985
723
71,994
21,598
40,238
12,071
Tax effect of amounts which are not
assessable or deductible:
Share of net profit of associates
(1,608)
Employee benefits
Franking credits
Deferred tax assets not recognised
Sundry items
Under/(over) provision in prior periods
806
(692)
232
(448)
25
116
332
(1,492)
371
768
(13)
19,913
12,153
RECOGNITION AND MEASUREMENT
Current taxes
The income tax expense for the period is the tax payable
on the current period’s taxable income based on the
applicable income tax rate, adjusted by changes in
deferred tax assets and liabilities attributable to temporary
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.
B. DEFERRED TAX ASSETS
At 1 July 2020
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
At 1 July 2021
Credited/(charged):
– to profit or loss
– to equity
Total deferred tax assets
Set off against deferred tax
liabilities pursuant to set off
provisions
At 30 June 2022
C. DEFERRED TAX LIABILITIES
Movements
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
At 1 July 2021
Charged/(credited):
– to profit or loss
Total deferred tax liabilities
Set off against deferred tax liabilities
pursuant to set off provisions
At 30 June 2022
Inventory
$’000
Cash flow
hedges
$’000
Receivables
$’000
Tax losses
$’000
Property,
plant and
equipment
(including
leases)
$’000
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
302
(60)
242
Total
$’000
22,290
1,262
23,552
(23,552)
–
3,916
459
13,531
1,409
3,995
242
23,552
201
–
4,117
(459)
–
–
1,658
–
15,189
338
–
1,747
(1,038)
–
2,957
(184)
35
93
516
35
24,103
(24,103)
–
Total
$’000
36,853
1,985
38,838
(23,552)
15,286
Finance
charges
$’000
25,825
Accrued
income
$’000
Inventory
$’000
4,189
1,463
Share of joint
arrangements
$’000
5,221
2,289
28,114
405
4,594
1,048
2,511
(1,757)
3,464
Other
$’000
155
–
155
28,114
4,594
2,511
3,464
155
38,838
2,450
30,564
272
4,866
(635)
1,876
808
4,272
–
155
2,895
41,733
(24,103)
17,630
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 72
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 73
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
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
2022
$’000
466,388
141,688
76,490
684,566
2021
$’000
309,269
144,306
87,947
541,522
Total inventory 2,3
657,093
489,925
Current
Non-current
Total inventory
205,400
451,693
657,093
114,898
375,027
489,925
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
inventories, in particular what costs are necessary
to sell inventories under AASB 2 Inventories. The
Group has adopted the IFRIC agenda decision with
no impact on the current period profit/(loss).
(27,473)
(51,597)
when determining net realisable value (NRV) of
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.
2. Total inventory includes the acquired inventory of Peet Flagstone City Pty Ltd. Refer to note 24 (b) on
asset acquisition.
10. INVESTMENTS ACCOUNTED FOR
USING THE EQUITY METHOD
Investments in associates and joint ventures are accounted
3. Total current inventory includes the land in New Beith, QLD sold in January 2022 which is expected
to settle in the first half of FY23.
for using the equity method of accounting.
RECOGNITION AND MEASUREMENT
Land held for development and resale is stated at the
lower of cost and net realisable value. Cost includes the
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
2022
$’000
2021
$’000
Carrying amount at 1 July
232,622
232,061
Acquisitions
Dividends
Capital returns
Share of profit after income tax
Derecognition of investment in Peet
Flagstone City Pty Ltd (note 24 (b))
16,927
(16,210)
(4,663)
24,095
(64,765)
–
(11,210)
(2,262)
14,033
–
B. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (JVs) INCLUDING SUMMARISED
FINANCIAL INFORMATION
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
e
r
u
t
n
e
v
t
n
o
i
j
i
r
o
e
t
a
c
o
s
s
a
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
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 2022
% $’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Associates
Peet Alkimos Pty Limited, WA
45
8,479
296,495
79,267
34,986
190,721
84,971
19,349
(2,514)
(1,093)
Peet Caboolture Syndicate Limited, QLD 20
7,445
28,380
12,643
696
22,486
Peet Werribee Land Syndicate, VIC
17
11,249
14,460
10,318
1,157
14,234
4,870
2,700
21,271
47,330
1,346
8,082
269
1,387
3,653
576
824
21,931
149,947
83,100
64,420
24,358
14,500
52,174
5,771
6,998
15,520
15,497
1,731
3,121
–
19,560
476
18,898
9,780
9,449
10,262
22,164
7,291
1,151
1,647
6,536
175,897
6,869
54,000
121,564
60,782
96,485
27,587
13,794
16,720
43,660
197
59,472
711
355
599
188,006
4,262
431
216
4,469
24,095
Peet Alkimos Pty Limited, WA
33
8,065
390,154
112,227
35,759
250,233
69,125
34,493
(4,028)
(1,344)
Joint Ventures*
Peet No.1895 Pty Limited, VIC
Peet Golden Bay Pty Limited, WA
Peet Mt Barker Pty Limited, SA
Googong Township Unit Trust, NSW
Peet Brabham Pty Ltd, WA
Other associates and JVs
Total
50
50
50
50
50
As at 30 June 2021
Associates
Peet Caboolture Syndicate Limited, QLD 20
Peet Werribee Land Syndicate, VIC
Joint Ventures*
Peet Flagstone City Pty Limited, QLD
Peet No.1895 Pty Limited, VIC
Peet Golden Bay Pty Limited, WA
Peet Mt Barker Pty Limited, SA
Googong Township Unit Trust, NSW
Peet Brabham Pty Ltd, WA
Other associates and JVs
Total
17
50
50
50
50
50
50
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
4,225
181,174
54,454
5,317
125,628
62,814
30,451
90,256
21,767
54,181
17,067
8,584
32,892
–
23,609
11,804
11,373
526
18,301
9,150
17,426
2,759
3,397
1,740
21,202
21,506
990
4,419
4,756
3,014
3,586
4,963
2,152
900
1,815
603
615
2,482
1,078
450
908
6,029
153,700
33,000
121,973
60,987
54,024
13,896
6,948
10,943
39,873
49,468
1,068
280
140
965
232,622
5,402
942
471
1,822
14,033
Carrying amount at 30 June
188,006
232,622
* Refer to note 10(c) for further breakdown of financial information of joint ventures
The Group assesses, at each balance date, the carrying
value of investments in associates and joint ventures to
ensure the assets are not impaired.
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 74
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 75
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD continued
11. RECEIVABLES
Related party balances with associates and joint ventures
B. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (JVs) INCLUDING SUMMARISED
FINANCIAL INFORMATION continued
Peet Flagstone City Pty Ltd became a wholly owned subsidiary of Peet Limited. Refer to note 24 (b) for details.
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 as disclosed in note 11.
During the year, Peet Limited has provided a cash advance facility to a shareholder of Peet Alkimos Pty Ltd. The cash
advance facility is measured at fair value on recognition date. Fair value of $3.2 million is measured as the net present
value of all estimated cash inflows and outflows over the term of the facility. 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
As at 30 June 2022
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 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
1 Excluding trade and other payables and provisions
Cash and cash
equivalents
$’000
6,230
5,664
6,660
21,835
313
3,625
5,525
4,450
1,614
2,597
407
Current
financial
liabilities 1
$’000
338
–
628
21,500
–
–
–
–
–
–
–
Non-current
financial
liabilities 1
$’000
54,000
–
–
61,290
56,789
48,757
33,000
–
–
67,328
49,431
Interest
expense
$’000
Income tax
expense/
(benefit)
$’000
–
–
–
–
57
–
–
–
–
–
26
134
491
706
3,137
299
2,128
8
386
778
922
157
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
2022
$’000
7,314
105
8,022
(3,434)
11,039
23,046
19,124
(1,971)
24,824
–
41,977
65,023
2021
$’000
7,728
1,276
12,708
(3,143)
7,356
25,925
included above:
Current
Trade receivables
Loans to associates and joint ventures
– At amortised cost (net of ECL allowance)
– At fair value
Non-current
Loans to associates and joint ventures
– At amortised cost (net of ECL allowance)
– At fair value
17,157
Other receivables
(91)
Total
2022
$’000
2021
$’000
648
3,021
4,588
11,039
9,565
7,356
17,153
24,824
–
58,252
17,067
30,312
5,430
72,751
Movements in loans to associates and joint ventures:
30,312
5,430
52,809
78,734
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 (2021: $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 8%.
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
57,604
64,300
and note 21 for fair value disclosures.
12. CONTRACT ASSETS
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
2022
$’000
2021
$’000
19,871
11,528
–
19,871
3,726
15,254
1. These amounts represent project management and performance fees payable from associates and
other managed entities for services provided. 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 were receivable from residents in the Lattitude Lakelands retirement
village, who entered into an agreement to pay the fee upon their departure. In June 2022, Peet sold
this business and the right to receive these deferred management fees.
2022
$’000
64,300
650
(4,975)
(2,371)
2021
$’000
91,753
5,452
(32,849)
(56)
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 76
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 77
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
13. PAYABLES
RECOGNITION AND MEASUREMENT
RECOGNITION AND MEASUREMENT
DEVELOPMENT COSTS TO COMPLETE
Current
Trade payables and accruals
Advance from joint operators
Total payables
2022
$’000
2021
$’000
Where the Group enters into unconditional contracts with
land vendors to purchase properties for future development
24,936
2,743
27,679
29,726
4,823
34,549
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
RECOGNITION AND MEASUREMENT
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.
settlement has occurred.
Refer note 21 for fair value disclosures.
The below table analyses the maturity of the Group’s land
vendor liability obligation:
Trade and other payables are presented as current liabilities
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.
0 – 1 years
1 – 2 years
2 – 5 years
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 settlement.
Total contractual cash flows
Carrying amount of liabilities
15. PROVISIONS
Refer note 21 for fair value disclosures.
14. LAND VENDOR LIABILITIES
Current
Instalments for purchase of
development property
Non-current
Instalments for purchase of
development property
Future interest component of
deferred payment 1
Total land vendor liabilities
Current
Rebates
2022
$’000
2021
$’000
Employee entitlements
Provision for development costs
to complete
14,808
14,808
23,075
(3,521)
19,554
34,362
–
–
–
–
–
–
Non-current
Employee entitlements
Provision for development costs to
complete
Total provisions
17,397
12,730
149
158
12,882
13,075
13,031
30,428
13,233
25,963
Movements in provisions during the financial year are set
out below:
1. Relating to the asset acquisition of Peet Flagstone City Pty Ltd during the year. Refer to Note 24 (b).
Carrying amount at 1 July
– Additional provision recognised
– Paid during year
– Expired during the year
2022
$’000
25,963
13,730
(7,888)
(1,377)
2021
$’000
26,882
4,488
(3,431)
(1,976)
2022
$’000
15,197
9,230
13,845
38,272
34,362
2022
$’000
3,165
3,947
10,285
2021
$’000
–
–
–
–
–
2021
$’000
2,455
3,295
6,980
Provisions are recognised when the Group has a present
Provisions for development costs not yet incurred for lots
legal or constructive obligation as a result of past events;
settled are recognised at each reporting date based on the
it is probable that an outflow of resources will be required
estimated costs to complete.
to settle the obligation; and the amount has been reliably
estimated. Provisions are not recognised for future
16. INTERESTS IN JOINT OPERATIONS
Details of aggregate share of assets, liabilities, revenue,
expenses and results of joint operations
Group’s share of:
Total
assets
$’000
Total
liabilities
$’000
Revenue
$’000
Expenses
$’000
7,615
2,176
7,815
6,659
590
372
4,396
1,350
22,567
4,099
7,269
6,516
7,966
3,526
5,341
3,613
4,197
2,126
9,360
7,742
22,391
4,675
10,748
9,374
As at 30 June 2022
The Village at
Wellard, WA
Lightsview
Joint Venture, SA
Redbank Plains
Joint Venture, QLD
As at 30 June 2021
The Village at
Wellard, WA
Lightsview
Joint Venture, SA
Redbank Plains
Joint Venture, QLD
operating losses.
Provisions are measured at
the present value of
management’s best estimate of the expenditure required
to settle the present obligation at the balance date. The
discount rate used to determine the present value reflects
current market assessments of the time value of money
and the risks specific to the liability. The increase in the
provision due to the passage of time is recognised as
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.
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
Carrying amount at 30 June
30,428
25,963
settled.
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 78
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 79
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
CAPITAL MANAGEMENT
17. FINANCIAL LIABILITIES
NET DEBT
This section outlines how the Group manages its capital
and related financing costs.
For the purpose of the Group’s capital management,
Borrowings – Current
capital includes:
• issued capital;
• debt facilities; and
Borrowings – Non-current
Total borrowings*
Cash and cash equivalents
Net debt
2022
$’000
49,935
2021
$’000
3,555
250,683
264,430
300,618
267,985
(55,380)
(64,125)
245,238
203,860
• other equity reserves attributable to the equity holders
of the parent.
* Excludes vendor financing. Refer note 14 for vendor financing on deferred payment terms.
The Group’s objectives when managing capital are to:
RECOGNITION AND MEASUREMENT
• safeguard its ability to continue as a going concern;
• continue to provide returns to shareholders and benefits
for other stakeholders;
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
• maintain an efficient capital structure to reduce the cost
amount is recognised in the statement of profit or loss over
of capital; and
the period of the borrowings using the effective interest
• ensure all covenants are complied with.
method.
In order to maintain or adjust the capital structure, the Group
For the purpose of presentation in the statement of cash
may adjust the amount of dividends paid to shareholders,
flows, cash and cash equivalents includes cash on hand,
return capital to shareholders, issue new shares or sell
deposits held at call with financial institutions, other short-
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
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.
by total assets adjusted for market value, net of cash and
Refer note 21 for fair value disclosures.
cash equivalents less intangible assets. The market value
is based on the latest independent mortgage valuations,
DEBT FACILITIES
adjusted for settlements, development costs and titled
The following provides details of the loans and borrowings
stock between the date of valuation and 30 June 2022. At
utilised as at 30 June 2022:
30 June 2022, the bank covenant gearing ratio was 28.6%
(2021: 25.7%).
Facility
amount
$’000
Utilised
amount 1
$’000
Effective
interest
rate
%
Bank loans – note a
264,000
102,355
5.9
Peet bonds and notes – note b
Series 2, Tranche 1
Peet notes 2019
Peet notes 2021
Face
value
$’000
Carrying
amount 2
$’000
Effective
interest
rate
%
50,000
75,000
75,000
49,935
74,213
74,115
200,000
198,263
5.4
7.2
5.4
1. Excludes bank guarantees. Refer note 23 for bank guarantees information.
2. Net of transaction and finance costs.
A. BANK LOANS
The bonds and notes are presented in the balance sheet
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 $807 million (2021:
$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 met during the reporting
period and as at 30 June 2022.
The Group’s main bank facility of $175 million expires
on 1 October 2024. The Group also has bank facilities
associated with Peet Flagstone City Pty Ltd ($64 million,
expires on 28 February 2024), Peet Yanchep Land Syndicate
($17 million, expires on 31 October 2024) and Peet R B
Plains Pty Ltd ($8 million, expires on 30 June 2024). The
table below analyses the maturity of the Group’s bank
loans based on the remaining period at reporting date to
the contractual maturity date:
2022
$’000
6,011
32,414
76,725
115,150
102,355
2021
$’000
7,433
20,171
54,018
81,622
70,330
0 – 1 years
1 – 2 years
2 – 5 years
Total contractual cash flows
Carrying amount of liabilities
B. PEET BONDS AND NOTES
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. Refer to note 2 (a) for the
repayment of these bonds.
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
as follows:
Face value of bonds and notes issued
200,000
200,000
2022
$’000
2021
$’000
Transaction costs
Cumulative interest expense
Cumulative coupon payable
(3,499)
(3,499)
196,501
196,501
36,179
24,392
(34,417)
(23,238)
1,762
1,154
Total bonds and notes liability
198,263
197,655
The bonds and notes are repayable as follows:
0 – 1 years
1 – 2 years
2 – 5 years
2022
$’000
59,523
83,579
83,583
Total contractual cash flows
226,685
2021
$’000
11,069
59,349
166,682
237,100
Carrying amount of liabilities
198,263
197,655
C. LEASE LIABILITIES
Current
Office space leases
Non-current
Office space leases
Total lease liabilities
2022
$’000
2021
$’000
1,958
1,797
1,766
3,724
3,723
5,520
During the year, total cash outflows for these leases is
$2.1 million (2021: $2.0 million).
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:
of 6.75%.
Peet Notes 2021
On 4 June 2021, Peet issued 75,000 notes to eligible
professional and sophisticated investors at a face value
0 – 1 years
1 – 2 years
2 – 5 years
> 5 years
of $1,000 per bond with a maturity date of 30 September
Total contractual cash flows
2026. These bonds are unsecured and carry a floating
Carrying amount of liabilities
interest rate of BBSW+4.85% margin.
2022
$’000
2,149
1,465
385
–
3,999
3,724
2021
$’000
2,115
2,149
1,850
–
6,114
5,520
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 8 0
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 81
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
17. FINANCIAL LIABILITIES continued
The gain or loss from remeasuring the hedging instruments
LIQUIDITY RISK
INTEREST RATE SENSITIVITY
DEBT FACILITIES continued
D. DERIVATIVE FINANCIAL INSTRUMENTS
Current
Interest rate swap contracts
Total derivative financial instruments
2022
$’000
–
–
2021
$’000
1,529
1,529
In December 2021, all remaining interest rate swap
contracts expired.
CHANGES IN LIABILITIES ARISING FROM
FINANCING ACTIVITIES
Lease
liabilities
$’000
5,521
(1,797)
Borrowings
$’000
267,985
(10,135)
42,000
1 July 2021
Cash flows
Acquisition
of Flagstone
(note 24 (b))
Changes in fair value
Others
–
768
–
–
30 June 2022
300,618
3,724
Derivative
financial
instruments
$’000
1,529
–
–
(1,529)
–
–
at fair value is recognised in other comprehensive income
and deferred in equity in the hedge reserve, to the extent
that the hedge is effective. It is reclassified into profit or
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.
The Group’s policy is to protect part of the loans from
exposure to increasing interest rates. Accordingly, the
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.
During the year, the fixed interest rate on the interest rate
swap contracts was 3.11% (2021: 3.11%). The variable
INTEREST RATE SWAP CONTRACTS
base rates are between 0.56% and 1.50% (2021: 0.01%
Recognition and measurement
and 0.09%).
Derivatives are initially recognised at fair value on the date
a derivative contract is entered into and are subsequently
measured at fair value at each reporting period. The
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
accounting for subsequent changes in fair value depends
on whether the derivative is designated as a hedging
debt.
The notional principal amounts and periods of expiry of the
interest rate swap contracts were as follows. In December
2021, all remaining interest rate swap contracts expired.
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
and hedged items, as well as its risk management objective
and strategy for undertaking various hedge transactions.
The Group also documents how it will assess hedge
0 – 1 years
effectiveness (including the analysis of sources of hedge
ineffectiveness). Hedge accounting is only applied where
2022
$’000
–
–
2021
$’000
100,000
100,000
there is an economic relationship between the hedged
The full fair value of interest rate swap is classified as a
item and hedging instrument.
non-current asset or liability when the remaining maturity
is more than 12 months, otherwise current.
Liquidity risk includes the risk that the Group, as a result of
The sensitivity analysis below has been determined
their operations:
• will not have sufficient funds to settle a transaction on
its due date;
• will be forced to sell financial assets at a value which is
less than what they are worth; or
based on the exposure to interest rates in existence at
balance date, and the stipulated change taking place at the
beginning of the financial year and held constant throughout
the reporting period. A 100 basis point increase and 50
basis point decrease used in the interest rate sensitivity
analysis were determined based on the level of debt that
• may be unable to settle or recover a financial asset at all.
was renewed and forecasters’ economic expectations and
Prudent liquidity risk management implies maintaining
sufficient cash, the availability of funding through an
represents management’s assessment of the possible
change in interest rates.
adequate amount of committed credit facilities to meet
At 30 June 2022, the Group had the following mix of
obligations when due, and the ability to close-out market
financial assets and liabilities exposed to variable interest
positions. Due to the dynamic nature of the underlying
rates:
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
Group’s derivative and non-derivative financial instruments
can be located in their respective notes.
Financial assets
Cash and cash equivalents (floating)
Loans to associates and joint ventures
measured at fair value
2022
$’000
2021
$’000
55,380
35,863
64,125
37,669
The Group has unused borrowing facilities which can
Financial liabilities
further reduce liquidity risk (refer to note 17 for analysis of
maturities on borrowing facilities).
Borrowings (floating, unhedged)
(226,405)
(94,263)
Interest rate swap
–
(1,529)
CREDIT RISK
The cash component of financial assets is considered
The potential impact of a change in interest rates by +100/
-50 basis points on profit and equity has been tabulated
Post-tax profits
Increase/
(decrease)
Equity
Increase/
(decrease)
2022
$’000
476
(953)
2021
$’000
(283)
566
2022
$’000
476
(953)
2021
$’000
(283)
566
to have low credit risk as the counterparties are banks
below:
with high credit ratings assigned by international credit-
rating agencies. An expected credit loss provision of $5.4
million (2021: $3.2 million) has been recognised for loans
measured at amortised cost of $27.1 million (2021: $29.9
million) (refer to note 11 and 27).
-50 basis points
+100 basis points
INTEREST RATE RISK
The Group’s main interest rate risk arises from cash, loans
to associates and joint ventures measured at fair value and
long-term borrowings.
Borrowings issued at variable rates expose the Group to
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 at fixed rate are not subject
to interest rate risk.
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 8 2
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 8 3
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
18. CONTRIBUTED EQUITY AND RESERVES
A. MOVEMENTS IN ORDINARY SHARE CAPITAL
19. DIVIDENDS
Date
Details
30 June 2020
Closing balance
Movement for the year
30 June 2021
Closing balance
Share buyback
30 June 2022
Closing balance
Number
of shares
483,300,489
–
483,300,489
(4,167,796)
479,132,693
$’000
378,916
–
378,916
(4,183)
374,733
Declared and paid during the period
Prior year fully franked dividend 2.5 cents, paid on 11 October 2021 (2021: 1.0 cent)
2.25 cents, paid on 14 April 2022 (2021: 1.0 cent)
Dividend not recognised at year end
Final dividend 4.0 cents per share to be paid on 14 October 2022 (2021: 2.5 cents per share)
19,165
12,083
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% (2021: 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
2022
$’000
12,083
10,874
22,957
2021
$’000
4,833
4,833
9,666
63,239
10,028
(8,214)
58,514
6,371
(5,178)
65,053
59,707
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 2020
Share based payment
Buyback on vesting of performance rights 3
At 30 June 2021
At 1 July 2021
Share based payment
Buyback on vesting of performance rights 4
Transactions with non-controlling interest
At 30 June 2022
Share-based
payments
reserve 1
$’000
12,890
1,600
(492)
13,998
Non-
controlling
interest
reserve 2
$’000
(15,447)
–
–
(15,447)
13,998
(15,447)
3,323
(635)
–
16,686
–
–
(655)
(16,102)
Total
$’000
(2,557)
1,600
(492)
(1,449)
(1,449)
3,323
(635)
(655)
584
1. The share-based payments reserve is used to recognise the fair value of options and performance rights granted.
2. The non-controlling interest reserve is used to record the differences described in note 2(e) which may arise as a result of transactions with non-controlling interests that do not result in a loss of control.
3.
4. During the year, the Company purchased 540,660 shares to settle the vesting of FY16, FY18 and FY19 Performance Rights.
In FY21, 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 AFTER INCOME TAX TO NET CASH INFLOW FROM
OPERATING ACTIVITIES
Profit after income tax
Adjustments to reconcile profit after tax to net operating cash flows:
Depreciation
Amortisation of intangible assets
Net realisable value adjustments
Employee share-based payments
Equity accounting for investments in associates and joint ventures
Derivative instrument fair value adjustment
Interest received
Peet bonds and notes effective interest rate adjustment
Distributions and dividends from associates and joint ventures
Fair value adjustments an ECL provision
Loss on disposal of property, plant and equipment
Other
Change in operating assets and liabilities during the financial year
Decrease/(increase) in receivables
Increase in inventories
Increase in tax liabilities
Decrease in payables
Increase/(decrease) in provisions
Increase in deferred tax liabilities
Net cash inflow from operating activities
2022
$’000
52,081
2,297
167
1,941
2,688
(24,095)
(1,529)
160
608
16,210
(67)
721
(57)
–
3,913
(7,538)
3,657
(9,677)
2,337
2,379
46,196
2021
$’000
28,085
2,190
806
–
1,108
(14,033)
(2,878)
239
922
11,210
57
–
–
–
(2,053)
(11,466)
5,684
(5,244)
(919)
723
14,431
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 8 4
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 85
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
21. FAIR VALUE MEASUREMENT
VALUATION OF FINANCIAL INSTRUMENTS
For financial assets and liabilities, the Group uses the
following fair value measurement hierarchy:
For the above table, the fair value of Peet bonds is
measured using quoted market value on ASX (level 1) and
the fair value of Peet notes is measured using significant
observable inputs (level 2).
• Level 1: the fair value is calculated using quoted prices
OTHER FINANCIAL LIABILITIES
in active markets for identical assets and liabilities.
The financial liabilities are measured at fair value through
• 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).
• Level 3: the fair value is based on inputs for the asset or
profit or loss using discounted cashflows with significant
unobservable inputs at each reporting date (level 3).
KEY ESTIMATES
Fair value estimation
liability that are not based on observable market data.
The fair value of financial instruments traded in
There have been no transfers between levels during the
period.
FINANCIAL ASSETS
Certain loans to associates and joint ventures are carried
at 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).
At 30 June 2022, the fair value of these loans to associates
and joint ventures is $35.9 million (30 June 2021: $37.7
million).
LAND VENDOR LIABILITIES
active markets (such as publicly traded derivatives
and trading and available for sale securities) is
based on quoted market prices at the balance
date. The quoted market price used for financial
assets held by the Group is the current bid price;
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
reporting date.
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
on market conditions existing at each balance date.
The Group measures its land vendor liabilities at fair value at
• Interest rate swaps are valued using valuation
each reporting date. The land vendor liability resulting from
techniques, which employs the use of market
the acquisition of the remaining share of Peet Flagstone
observable inputs such as forward pricing and
City Pty Ltd (refer to note 24 (b)) is measured as the net
swap models.
present value of remaining contracted instalments with
significant unobservable inputs (level 3 of the fair value
hierarchy). The fair value as at 30 June 2022 for this liability
is $28.4 million.
PEET BONDS AND NOTES
The fair value of Peet bonds and notes as at 30 June 2022
is detailed below.
Peet bonds Series 2, Tranche 1
Peet Notes 2019
Peet Notes 2021
Total fair value
Total carrying value
2022
$’000
49,000
74,777
75,295
199,072
198,263
2021
$’000
50,000
76,620
76,260
202,880
197,655
• 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.
OTHER NOTES
COMMITMENTS
22. REMUNERATION OF AUDITORS
On 30 June 2022, the Group had a commitment of $67.1
million to pay for the acquisition of approximately 15
hectares of land from the University of Canberra in ACT.
2022
$
2021
$
The purchase price is expected to be paid in instalments
over seven years commencing in 2022. A further $5.5
million collaboration payment is to be paid by the Group to
389,250
338,065
the University of Canberra in equal instalments between
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)
7,800
52,225
7,500
56,350
97,479
51,173
168,792
69,030
597,927
688,186
2022 and 2029. These payments are subject to settlement,
which remains conditional at balance date, therefore no
liability has been recognised at 30 June 2022.
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:
23. CONTINGENCIES AND COMMITMENTS
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
Insurance bonds outstanding
2022
$’000
33,713
20,082
53,795
2021
$’000
21,905
14,539
36,444
All contingent liabilities are expected to mature within
1 year.
The Directors are not aware of any circumstances or
Balance sheet
Current assets
Total assets
Current liabilities
Total liabilities
Shareholders’ equity
Issued capital
Reserves
Share-based payments reserve
Retained profits
Total equity
Profit/(loss) for the year
Total comprehensive income
2022
$’000
2021
$’000
61,691
63,565
557,384
574,610
59,260
20,414
121,785
125,345
374,732
378,917
16,686
44,181
13,998
56,350
435,599
449,265
10,788
10,788
(20,151)
(20,151)
information, which would lead them to believe that these
GUARANTEES ENTERED INTO BY THE
contingent liabilities will eventuate and consequently no
PARENT ENTITY
provisions are included in the accounts in respect of these
matters.
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
2022
$’000
923
2021
$’000
689
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 8 6
PEE T LIMIT ED | ANNUA L REPOR T 2 0 2 2 | 87
Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
24. PARENT ENTITY FINANCIAL
ACQUISITION
INFORMATION AND SUBSIDIARIES
continued
B. SUBSIDIARIES
SIGNIFICANT INVESTMENTS IN SUBSIDIARIES
The consolidated financial statements incorporate the
assets, liabilities and results of the following significant
On 20 January 2022, Peet Limited acquired the remaining
50% shareholding in Peet Flagstone City Pty Ltd for
$46.2 million from Spirit Super. The first instalment of
$13.8 million was paid in January 2022. The remaining
purchase price is to be paid in three instalments over three
years to 2025.
subsidiaries in accordance with the accounting policy
This acquisition has given Peet a 100% ownership of Peet
described in note 2(a):
Flagstone City Pty Ltd.
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 Southern JV Pty Limited 2
Peet Brigadoon 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
Peet FL Pty Ltd 2
Peet Flagstone City Pty Ltd 2,3
Peet Yanchep Land Syndicate 2
Holding
2022
%
2021
%
This is an asset acquisition as the transaction did not meet
the definition of a business combination in accordance
with AASB 3 Business Combinations.
Details of the carrying values of identifiable assets and
liabilities as at the date of acquisition are:
Assets
Cash
Trade and other receivables
Inventory
Plant and equipment
Liabilities
Trade and other payables
Borrrowings 1
Provision
Carrying value of identifiable net assets
1.
Included intercompany loan of $6.9 million.
Details of the purchase price are as follows:
Equity accounted investment at the date
of acquisition
First instalment paid
Land vendor liability
Stamp duty and other costs
Total purchase price
Purchase
price
allocation
$’000
6,537
518
161,571
225
168,851
5,855
48,959
1,285
56,099
112,752
$’000
64,765
13,845
27,512
6,630
112,752
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
50
66.4
66.4
Incorporated in ACT.
Incorporated in WA.
1.
2.
3. Became a subsidiary during the year. However, it was accounted for as an associate in 2021 per note 10.
MATERIAL PARTLY-OWNED SUBSIDIARIES
DEED OF CROSS GUARANTEE
Financial information of subsidiaries that have material non-
Peet Limited and certain wholly-owned subsidiaries are
controlling interests is provided below. This information is
parties to a deed of cross guarantee under which each
based on amounts before inter-company eliminations.
company guarantees the debts of the other. By entering
Peet Yanchep Land
Syndicate
2022
$’000
1,802
85,210
1,423
21,243
21,619
1,343
(699)
235
2021
$’000
2,879
81,673
2,704
31,727
16,840
4,101
(1,238)
415
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Non-controlling interest
Revenue
Loss after tax
Loss attributable to
non-controlling interest
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.
Consolidated statement of profit or loss
Revenue
Expenses
Finance costs
Summarised cash flow information:
Share of net profit of associates
accounted for using the equity method
Peet Yanchep Land
Syndicate
Net realisable value adjustments
Profit before income tax
2022
$’000
(3,710)
3,656
(54)
2021
$’000
(153)
200
47
Income tax expense
Profit for the year
Total comprehensive income for
the year
Operating
Financing
Net (outflow)/inflow
2022
$’000
2021
$’000
235,507
216,632
(192,398)
(183,845)
(3,085)
23,579
(5,342)
13,211
(4,129)
–
59,474
40,656
(19,852)
(12,154)
39,622
39,622
28,502
28,502
Peet Limited has provided a $2.4 million loan to Peet
Yanchep Land Syndicate as at 30 June 2022 (30 June
2021: $2.4 million) and no loans to other partly-owned
subsidiaries. Peet has granted a guarantee of $6.0 million to
Peet Yanchep Land Syndicate as at 30 June 2022 (30 June
2021: $6.0 million). The Group has no further contractual
obligations to provide ongoing financial support.
Summary of movement in consolidated retained profits
Retained profits at the beginning of the
financial year
138,141
119,305
Profit for the year
Dividends paid
Retained profits at the end of the
financial year
39,622
(22,957)
28,502
(9,666)
154,806
138,141
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Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
24. PARENT ENTITY FINANCIAL
25. SHARE-BASED PAYMENTS
VESTING AND EXERCISE CONDITIONS
order is made for winding up the Company. Options
INFORMATION AND SUBSIDIARIES
continued
CONSOLIDATED BALANCE SHEET
PEET EMPLOYEE SHARE OPTION PLAN
(PESOP) AND PEET PERFORMANCE
RIGHTS PLAN (PPRP)
Set out below is a consolidated balance sheet at 30 June
The establishment of the PESOP was approved by the
2022 of the closed group consisting of Peet Limited and
Board and shareholders during the 2004 financial year
certain wholly owned subsidiaries.
and the Peet Limited PPRP was approved by shareholders
Current assets
Cash and cash equivalents
Receivables
Inventories
Total current assets
Non-current assets
Receivables
Inventories
Investments
Right-of-use assets
Property, plant and equipment
Intangible assets
2022
$’000
2021
$’000
51,887
44,587
63,958
37,379
182,366
114,898
278,840
216,235
51,355
227,200
343,484
2,507
2,734
1,922
59,800
290,701
265,904
3,848
3,092
2,193
Total non-current assets
629,202
625,538
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;
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.
granted under the PESOP and performance rights under
the PPRP carry no dividend or voting rights.
LAPSE OF OPTIONS AND PERFORMANCE
RIGHTS
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
Unexercised options and/or performance rights 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 performance rights’ exercise
conditions in the prescribed period or on the expiry date of
options and/or performance rights, as determined by the
relation to a proposed compromise or arrangement in
Board.
respect of the Company, or a resolution is passed or an
FAIR VALUE OF OPTIONS AND PERFORMANCE RIGHTS GRANTED
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.
Total assets
Current liabilities
Payables
Land vendor liabilities
Borrowings
Lease liabilities
Derivative financial instruments
Current tax liabilities
Provisions
Total current liabilities
Non-current liabilities
Land vendor liabilities
Borrowings
Lease liabilities
Other financial instruments
Deferred tax liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Retained profits
Total equity
908,042
841,773
• the period or periods during which any of the options
The inputs for assessing the fair value of the performance rights issued during the year under the PPRP were:
Grant Date
16 Nov 21
Exercise Price
Expiry date
Share price at
grant date
Risk free
interest rate
$0.00
16 Nov 36
$1.08
0.16%
Assessed
fair value
$0.99
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 $3,322,585 (2021: $1,600,218).
and/or performance rights may be exercised;
• the dates and times when the options and/or
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.
CONSIDERATION
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.
24,076
14,808
49,935
1,958
–
9,220
13,378
113,375
19,554
221,143
1,766
3,161
17,990
150
33,492
–
3,555
1,797
1,529
6,371
12,437
59,181
–
3,723
247,655
–
15,314
158
263,764
266,850
377,139
326,031
530,903
515,742
374,733
378,916
1,364
(1,315)
154,806
530,903
138,141
515,742
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Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
25. SHARE-BASED PAYMENTS continued
27. OTHER ACCOUNTING POLICIES
Financial assets at amortised cost (debt instruments)
FAIR VALUE OF OPTIONS AND PERFORMANCE RIGHTS GRANTED continued
A. FINANCIAL ASSETS
Set out below are summaries of options and performance rights granted under the plans:
Grant value 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 2022
Options
30 Nov 07
Performance rights
N/A
$4.10
$1.12
1,200,000
21 Dec 30
21 Dec 31
21 Dec 31
05 Dec 32
05 Dec 32
21 Nov 33
21 Nov 34
19 Nov 35
16 Nov 36
–
–
–
–
–
–
–
–
–
$0.957
269,103
$0.801
1,065,114
$0.849
$1.328
$1.299
580,682
349,739
264,590
$0.940
2,097,201
$1.044
2,253,147
$0.940
3,243,407
21 Dec 15
23 Nov 16
21 Dec 16
29 Nov 17
5 Dec 17
21 Nov 18
21 Nov 19
19 Nov 20
16 Nov 21
30 June 2021
Options
30 Nov 07
–
(178,067)
–
–
–
(8,620)
–
–
–
–
–
–
1,200,000
1,200,000
91,036
91,036
1,065,114
1,065,114
580,682
349,739
255,970
(353,974)
(838,883)
904,344
–
–
–
–
–
–
2,253,147
3,243,407
2,325,987
580,682
349,739
255,970
904,344
–
–
–
$0.990
–
2,325,987
10,122,983
2,325,987
(540,661)
(838,883) 11,069,426
3,246,885
11,322,983
2,325,987
(540,661)
(838,883) 12,269,426
4,446,885
Performance rights
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
21 Dec 31
21 Dec 31
05 Dec 32
05 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)
–
–
–
–
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
26. MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
The Directors have declared a final fully franked dividend of 4.0 cents per share in respect to the year ended 30 June 2022.
The dividend is to be paid on Friday, 14 October 2022, with a record date of Monday, 19 September 2022. 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.
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.
The classification of financial assets at initial recognition
depends on the financial asset’s contractual cash flow
characteristics and the Group’s business model for
This category is the most relevant to the Group. The Group
measures financial assets at amortised cost if both of the
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
• The contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding
managing them. With the exception of trade receivables
Financial assets at amortised cost are subsequently
that do not contain a significant financing component or for
measured using the effective interest (EIR) method and are
which the Group has applied the practical expedient, the
subject to impairment. Gains and losses are recognised in
Group initially measures a financial asset at its fair value
profit or loss when the asset is derecognised, modified or
plus, in the case of a financial asset not at fair value through
impaired.
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 financial assets at amortised cost includes
trade receivables, and loans to associates and JVs included
under Receivables.
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
refers to how it manages its financial assets in order to
separated embedded derivatives, are also classified as
generate cash flows. The business model determines
held for trading unless they are designated as effective
whether cash flows will result from collecting contractual
hedging instruments. Financial assets with cash flows
cash flows, selling the financial assets, or both.
SUBSEQUENT MEASUREMENT
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
For purposes of subsequent measurement, financial
criteria for debt instruments to be classified at amortised
assets are classified in four categories:
• Financial assets at amortised cost (debt instruments)
cost or at fair value through OCI, as described above,
debt instruments may be designated at fair value through
profit or loss on initial recognition if doing so eliminates, or
• Financial assets at fair value through OCI with recycling
significantly reduces, an accounting mismatch.
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.
N/A
$4.10
$1.12
1,200,000
1,200,000
1,200,000
The Group’s business model for managing financial assets
repurchasing in the near term. Derivatives, including
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Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
27. OTHER ACCOUNTING POLICIES continued
B. LEASES
C. INTANGIBLE ASSETS
E. TERMINATION BENEFITS
through profit or loss. ECLs are based on the difference
Right-of-use assets are measured at cost initially and then
below.
A. FINANCIAL ASSETS continued
IMPAIRMENT
The Group recognises an allowance for expected credit
losses (ECLs) for all debt instruments not held at fair value
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.
between the contractual cash flows due in accordance with
depreciated over the shorter of the asset’s useful life and the
the contract and all the cash flows that the Group expects
lease term on a straight-line basis. The cost of right-of-use
to receive, discounted at an approximation of the original
assets includes the amount of lease liabilities recognised,
effective interest rate. The expected cash flows will include
initial direct costs incurred, and lease payments made at or
cash flows from the sale of collateral held or other credit
before the commencement date less any lease incentives
enhancements that are integral to the contractual terms.
received. Right-of-use assets are subject to impairment.
ECLs are recognised in two stages. For credit exposures
The lease liability is initially measured at net present
for which there has not been a significant increase in credit
value of future
lease payments using the Group’s
risk since initial recognition, ECLs are provided for credit
incremental borrowing rate. The lease payments include
losses that result from default events that are possible
fixed payments less any lease incentives receivable and
within the next 12-months (a 12-month ECL). For those
variable lease payments that depend on an index or a rate.
credit exposures for which there has been a significant
The lease payments are allocated between repayment of
increase in credit risk since initial recognition, a loss
lease liability and interest expense (charged to profit or loss
allowance is required for credit losses expected over the
over the lease period). In addition, the carrying amount of
remaining life of the exposure, irrespective of the timing of
lease liabilities is remeasured if there is a modification or a
the default (a lifetime ECL).
change in the lease term.
Intangible assets primarily consist of software and are
Termination benefits are payable when employment is
shown at historical costs less depreciation.
terminated before the normal retirement date, or when an
Depreciation on intangible assets is calculated using the
straight-line method over their estimated useful lives as
• 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
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
providing termination benefits because of an offer made
to encourage voluntary redundancy. Benefits falling due
more than 12 months after balance date are discounted to
present value.
F. GOODS AND SERVICES TAX (GST)
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.
customise do not result in the recognition of an intangible
Receivables and payables are stated inclusive of the
software asset, then those costs that provide the Group
amount of GST receivable or payable. The net amount of
with a distinct service (in addition to the SaaS access) are
GST recoverable from, or payable to, the taxation authority
now recognised as expenses when the supplier provides
is included with other receivables or payables in the
For trade receivables and contract assets, the Group applies
For short-term leases and leases of low-value assets,
the services.
balance sheet.
a simplified approach in calculating ECLs. Therefore, the
lease payments are recognised on a straight-line basis as
Group does not track changes in credit risk, but instead
an expense in profit or loss. Short-term leases are leases
recognises a loss allowance based on lifetime ECLs at
with a lease term of 12 month or less. Low-value assets
each reporting date. The Group has established a provision
are generally small items of office equipment.
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.
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.
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.
Depreciation on property, plant and equipment is calculated
using the straight-line method to allocate their cost, net of
G. GOVERNMENT GRANTS
their residual values, over their estimated useful lives, as
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.
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.
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27. OTHER ACCOUNTING POLICIES continued
H. PARENT ENTITY FINANCIAL INFORMATION
TAX CONSOLIDATION LEGISLATION
I. NEW ACCOUNTING STANDARDS AND
INTERPRETATIONS ISSUED BUT NOT
YET EFFECTIVE
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
Other than below amendments, 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.
of the entities are set-off in the consolidated financial
Amendments to IAS 1: Classification of Liabilities as
statements.
Current or Non-current
The entities in the tax consolidated group entered into a
In January 2020, the IASB issued amendments to
tax sharing agreement which limits the joint and several
paragraphs 69 to 76 of IAS 1 to specify the requirements
liability of the wholly-owned entities in the case of a default
for classifying liabilities as current or non-current. The
by the head entity, Peet Limited. At the balance sheet date
amendments are effective for annual reporting periods
the possibilities of default were remote.
beginning on or after 1 January 2024 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.
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
Group.
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
wholly-owned entity.
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.
Directors’ Declaration
Year ended 30 June 2022
In the Directors’ opinion:
a. the financial statements and notes set out on pages 60 to 96 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 2022 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
24 August 2022
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Independent Auditor’s Report
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Independent Auditor’s Report
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Independent Auditor’s Report
Securityholder Information
DISTRIBUTION OF ORDINARY SHARES AND PEET BONDS
As at 30 August 2022 there were 2,173 current holders of ordinary shares and 574 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
Total
No of
Shareholders
% of Issued
Shares
No of PPCHB
Bondholders
% of Issued
PPCHB Bonds
543
592
341
614
83
2,173
0.03
0.38
0.56
3.75
95.28
100.00
511
55
4
3
1
574
33.21
25.56
5.69
8.56
26.98
100.00
There were 408 shareholdings of less than a marketable parcel of $500 (455 shares).
There were nil holdings of PPCHB Bonds of less than a marketable parcel of $500 (fi ve PPCHB Bonds).
SECURITYHOLDERS
The names of the 20 largest holders of ordinary shares as at 30 August 2022 are listed below.
Name
Scorpio Nominees Pty Ltd
Citicorp Nominees Pty Limited
HSBC Custody Nominees (Australia) Limited – A/C 2
HSBC Custody Nominees (Australia) Limited
J P Morgan Nominees Australia Pty Limited
Hurose Pty Ltd
Argo Investments Limited
Mr Warwick Donald Hemsley
National Nominees Limited
Ian Murray Charles Palmer & Helen Christina Palmer
Golden Years Holdings Pty Ltd
Mirrabooka Investments Limited
Mr Brendan David Gore
UBS Nominees Pty Ltd
BNP Paribas Noms Pty Ltd
Netwealth Investments Limited
Neweconomy Com Au Nominees Pty Limited <900 Account>
BNP Paribas Nominees Pty Ltd
CS Fourth Nominees Pty Limited
Warbont Nominees Pty Ltd
Total for 20 largest shareholders
Total other shareholders
Total ordinary shares on issue
Number of
Shares Held
% of
Shares Held
86,582,433
73,392,244
53,762,137
46,171,084
42,577,969
20,015,000
18,152,705
17,459,881
15,284,832
12,707,352
8,656,230
7,850,000
7,240,842
5,578,355
4,701,516
3,346,974
2,000,455
1,869,376
1,647,732
1,640,377
430,637,494
45,437,523
476,075,017
18.19
15.42
11.29
9.70
8.94
4.20
3.81
3.67
3.21
2.67
1.82
1.65
1.52
1.17
0.99
0.70
0.42
0.39
0.35
0.34
90.45
9.55
100.00
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Securityholder Information
The names of the 23 largest holders of PPCHB Bonds as at 30 August 2022 are listed below. These Bonds mature
5 October 2022.
Name
HSBC Custody Nominees (Australia) Limited
J P Morgan Nominees Australia Pty Limited
Grizzly Holdings Pty Limited
Keppoch Pty Limited
Finot Pty Limited
Citicorp Nominees Pty Limited
BT Portfolio Services Limited
Roni H Pty Ltd
National Nominees Limited
Invia Custodian Pty Limited
Netwealth Investments Limited
Hamilton Industries (Victoria) Pty Limited
Trancape Pty Ltd
Mrs Deborah Mary Meagher
Tobochin Pty Ltd
Bennypete 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
134,904
18,197
12,600
12,000
8,000
7,467
7,000
6,000
5,000
4,690
4,524
4,000
4,000
3,999
3,959
3,911
3,500
3,125
3,000
3,000
3,000
3,000
3,000
% of PPCHB
Bonds Held
26.98
3.64
2.52
2.40
1.60
1.49
1.40
1.20
1.00
0.94
0.90
0.80
0.80
0.80
0.79
0.78
0.70
0.63
0.60
0.60
0.60
0.60
0.60
261,876
238,124
500,000
52.38
47.62
100.00
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
Bondholders have certain rights to vote at meetings of bondholders but are not entitled to vote at general meetings,
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. These bonds mature
5 October 2022.
OPTIONS AND PERFORMANCE RIGHTS
As at 30 August 2022, Peet Limited had 1,200,000 options on issue, held by one key management person, as disclosed
elsewhere in the Annual Report.
As at 30 August 2022, Peet Limited had 7,822,541 performance rights on issue, held by a total of 10 KMP 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 30 August 2022, 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:
As disclosed in substantial holding notices lodged with ASX (as applicable) as at 30 August 2022:
• investor relations page with the latest Company announcements;
Name
Scorpio Nominees Pty Ltd and its associates
Allan Gray Australia Pty Ltd and its associates
L1 Capital Pty Ltd
Regal Funds Management Pty Ltd and its associates
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
26 August 2022
56,044,349
7 June 2022
28,624,760
20.50
18.36
11.77
5.95
• news service providing up to date information on the Company’s activities and projects; and
• access to annual and half year reports.
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“Community for us is super important.
We want to have a really good
relationship with our neighbours
and we want to become friends.”
Paula and George
at the New Resident Welcome Event
at Bluestone, Mt Barker
Corporate Directory
PEET LIMITED
A.B.N. 56 008 665 834
Website Address – www.peet.com.au
DIRECTORS
Tony Lennon, FAICD, Non-executive Chairman
Brendan Gore, BComm, FCPA, FCIS, FGIA, FAICD, Managing Director and Chief Executive Officer
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
GROUP COMPANY SECRETARY
Dom Scafetta, BComm, CA
REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS
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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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
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