Pilgrim's Pride Annual Report 2023

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FY2023 Annual Report · Pilgrim's Pride

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ANNUAL REPORT 2023

Contents

Our Business

FY23 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 FY24

Financials

Defining future places of

belonging

Image: Tonsley Village, SA

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 1

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 to
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.

Image: Golden Bay, WA

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 2

Values
People

Centric

People are always at the centre
of our ideas, considerations
and decisions.

Creative

Intelligence

Unwavering

Commitment

We are tenacious, accountable
and trusted to deliver quality.

We are driven by imagination,
innovation and future-focused
thinking. We also apply a
considered and deliberate
approach to design and solve
problems creatively.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 3

FY23 Performance
at a Glance

“The strong FY23 result is on the back of the Group’s continuing
focus on monetising the high number of contracts on hand at the
start of the financial year, many of which had high margins as a result
of strong price growth.”

Brendan Gore

Managing Director and Chief Executive Officer

Operational

1,339

LOTS SOLD1

COMPARED TO
3,163 IN FY22

2,594

LOTS SETTLED1

REVENUE OF

$363.7m

$$476.4m

CONTRACTS
ON HAND1

LAND BANK WEIGHTED TO
UNDERSUPPLIED
EAST COAST
MARKETS

TWO NEW
PROJECTS
COMMENCED
DEVELOPMENT/SALES
DURING FY23

Includes equivalent lots.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 4

Financial

$70.1
million

OPERATING AND STATUTORY
PROFIT2 AFTER TAX

34%

INCREASE
ON FY22

$107.0
million
EBITDA3
29.0%

MARGIN OF

NTA
of $1.29
6%

INCREASE
ON FY22

OPERATING
EARNINGS OF
14.79 CENTS
PER SHARE
37%

INCREASE
ON FY22

OPERATING CASH
INFLOW4 OF
$89.0
MILLION

FY23 DIVIDEND OF
7.50 CENTS
PER SHARE
FULLY FRANKED
20%

INCREASE
ON FY22

GEARING5
OF 27.7%

2 Operating profit is a non-IFRS measure that is determined to present the ongoing activities of the Group in a way that reflects its

operating performance. Operating profit excludes unrealised fair value gains/(losses) arising from the effect of revaluing assets and
liabilities and adjustments for realised/(unrealised) transactions outside the core ongoing business activities.

3 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
4 Before acquisitions.
5 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash) / (Total assets less cash, less intangible assets).

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 5

Group Strategy

Strategic focus on optimising land bank for future
growth and value creation.

MAINTAIN
STRONG CAPITAL
MANAGEMENT

VALUE
CREATION

INVEST IN HIGH
QUALITY LAND
IN STRATEGIC
LOCATIONS ACROSS
THE COUNTRY

EXPAND PRODUCT
OFFERING AND
GEOGRAPHIC
PRESENCE TO
APPEAL TO A
WIDER VARIETY
OF CUSTOMERS

Strategic Pillars

MASTERPLANNED
COMMUNITIES

TOWNHOUSES

APARTMENTS

ENABLED BY:

Positive environmental and social impact

Engaged and high-performing team

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 6

Image: Flagstone, QLD (Artist’s Impression)

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 15,400
lots6 across 22 projects, providing opportunities for investors ranging from mums and dads to
institutional and wholesale investors to participate in land development projects.

M U N ITIE

WHOLESALE/
INSTITUTIONAL
8,953 lots6
$2.8bn GDV

M
E
N
T

NED CO M

N
LA
P
R
E
T
S
A
M

OWNED
20,238 lots6
$8.6bn GDV

T
N
E
M

RETAIL
4,362 lots6
$1.2bn GDV

JOINT VENTURES
2,177 lots6
$1.0bn GDV

TOWNHOUS E S

Includes equivalent lots.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 7

National Reach

35,730
LOTS7

$13.5b

END VALUE

PROJECTS
NATIONALLY

ACT

QLD

VIC

NSW

PROJECTS:

Includes equivalent lots.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 8

Leading Australian
developer with a
proven track record
for nearly 130 years

Large, nationally
diverse land bank
provides economies
of scale to deliver
a wide range
of product at
lower cost

Proven ability
to expand
business into new
opportunities such
as townhouses and
low-rise apartments

Image: Brabham Estate, WA

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 9

Chairman’s Review

Dear Shareholders,

I am pleased to present Peet’s Annual Report for
the year ended 30 June 2023.

Peet is a leading national residential developer since
commencing almost 130 years ago. We have a
proven track record of creating high quality master
planned communities, townhouses and apartments
that are located in desirable urban locations and key
growth corridors.

Our geographically diverse pipeline of projects
provides our management team with the ability
to manage our comprehensive land bank and our
capital through market cycles.

Despite the challenging economic backdrop, I am
pleased to present the high level details of our
strong financial results:

• FY23 dividends of 7.5 cents per share, fully franked,

compared to 6.25 cents per share in FY22.

The contributing factors behind our record profit
performance, and outlook for FY24 and beyond, are
covered in the Managing Director and CEO’s Review
and in the Review of Operations forming part of the
2023 Directors’ Report.

Focus on Value Creation

Peet is uniquely positioned to respond quickly to
market recovery and take advantage of a shortage
of market supply, with key projects having
environmental and planning approvals in place. We
expect significant value to be unlocked through the
Flagstone City Centre, the University of Canberra
project and new project commencements currently
programmed for the next four years.

• A record financial result for FY23 of operating8
and statutory profit9 after tax of $70.1 million,
representing an increase of 34% on FY22.

Peet is well positioned for growth with its key
strategic focus areas for FY24 and beyond
continuing to be:

• An operating and statutory earnings per share

of 14.8 cents for FY23, compared to 10.8 cents
in FY22.

• Continued focus on capital management and

monetising of contracts on hand, with increased
positive cash flows from operations of $89.0
million (before acquisitions).

• Gearing10 of 27.7% at 30 June 2023, compared

with 29.9% at 30 June 2022.

• Investing in high quality land in strategic locations

across the country;

• Expanding product offering and geographic
presence to appeal to a wider variety of
customers; and

• Maintaining strong capital management.

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.
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).

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 10

Strong Shareholder Returns

Peet is pleased to have returned $173 million11
to shareholders since FY18 through fully franked
dividends and our on-market share buy-back.
The disciplined application of our capital
management framework and strong balance
sheet drives strong shareholder benefits as our
financial performance improves.

Dividends

Subsequent to year end, the Directors declared a
final dividend for FY23 of 4.0 cent per share, fully
franked. This brings the total dividend for FY23 to
7.5 cents per share, fully franked. This compares
to the FY22 dividend of 6.25 cents per share, fully
franked. The final FY23 dividend is to be paid on
Monday, 16 October 2023, with a record date of
Monday, 11 September 2023.

The Directors have resolved to keep the Company’s
Dividend Reinvestment Plan deactivated.

On-market share buy-back

Our value driven on-market share buy-back
continues and has reduced our shares on issue by
c.4%. This further benefits our per-share dividends
through time with the current book NTA of $1.29
and average buy-back price of c.$1.05 per share.

“ We are focused on value creation

for our shareholders, driven through
a strong platform for growth and a
portfolio of high quality, low cost
base projects across the country.”

I would like to thank my fellow Board members,
including our Managing Director and CEO Brendan
Gore and the entire Peet team for their continued
commitment and focus to deliver on our Group
strategy and achieve record earnings in FY23.

Following nine years on the Board, Vicki Krause
and Bob McKinnon have advised that they will retire
at the upcoming Annual General Meeting (AGM).
On behalf of the Board, I congratulate both Vicki
and Bob on their professional and dedicated
services to Peet and warmly wish them well for
their future endeavours.

I’d also like to extend a warm welcome to newly
appointed Non-executive Directors, Margaret
Kennedy, Michelle Tierney and Greg Wall. Their
significant experience and skills across a broad
range of industry sectors, including property,
financial services and funds management, will
complement and strengthen the Board’s experience
and expertise.

As required by the Peet Constitution, Margaret,
Michelle and Greg will offer themselves for election
by shareholders at the 2023 AGM.

As part of the succession planning for the Board,
and to ensure an orderly transition process, I have
informed the Board of my intentions to retire as
Chairman and Director in the next 12 to 18 months.

Finally, I would like to extend our appreciation to our
shareholders, partners and key stakeholders for their
ongoing support of Peet and our management team,
and we look forward to sharing our progress with
you throughout the next 12 months.

Tony Lennon

Chairman

11 Includes final FY23 dividend of 4.0 cents per share.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 11

Managing Director
and CEO’s Review

Dear Shareholders,

I am pleased to report on the Group’s performance
for the year ended 30 June 2023 (FY23).

FY23 Record Performance

The Peet Group achieved a record operating profit12
and statutory profit13 after tax of $70.1 million for
the year ended 30 June 2023, which represents an
increase of 34% on the previous financial year which
was also a record earnings performance.

The Group reported EBITDA14 of $107.0 million
during FY23, compared to $86.0 million in FY22,
with an EBITDA14 margin of 29%, compared to the
margin achieved in FY22 of 30%.

The material improvement in profit was driven by:

• prudent focus on monetising the high number of

contracts on hand at the start of the financial year,
many of which had high margins as a result of
strong price growth;

• the changing product mix, including an

improved performance from medium density
townhouse product;

• continued focus on creating and unlocking value

by appropriately managing the Group’s significant
land bank; and

• continued focus on cost management and

operational efficiencies.

Due to challenging economic conditions and Peet’s
measured responses, sales activity during FY23
reduced from elevated levels in FY22. The Group
sold 1,399 lots15 across its Funds Management,
Development and Joint Venture projects, compared
to 3,163 lots15 in FY22.

Multiple interest rate rises and inflationary pressures
contributed to more subdued market conditions
during FY23, reducing the borrowing capacity
of buyers, especially of first home buyers. This,
together with continued supply chain constraints
and labour shortages impacting builders, has
negatively impacted consumer sentiment.

Peet responded to the underlying market and
broader economic conditions by reducing the
number of new stage releases and allocating
resources to the creation of lots pre-sold during the
peak 2022 selling period.

Peet proactively focused on protecting its balance
sheet and its high level of contracts on hand during
FY23, resulting in strong settlements of 2,594 lots15,
compared to 2,514 lots15 in FY22. This was
achieved by the close management of construction
programs and the low cancellation rate for
unconditional contracts.

The Group enters FY24 in a strong capital position,
with gearing16 at 30 June 2023 within the target
range of 20% to 30% (at 27.7%), and a still
solid level of contracts on hand with a value of
$476.4 million.

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 Includes equivalent lots.
16 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash) / (Total assets less cash, less intangible assets).

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 12

Capital Management

Well-positioned for growth

The Group’s continuing focus on capital
management, and the monetising of contracts on
hand during FY23, contributed to increased cash
inflows from operations (prior to acquisitions) of
$89.0 million, compared with $80.1 million in FY22.

As at 30 June 2023 the Group had:

Peet has a strong platform for growth with
significant value to be unlocked as we deliver
against our strategy:

Investing in high quality land in strategic
locations across the country

• Land bank weighted to undersupplied east coast

• gearing17 of 27.7% compared with 29.9% at 30

markets.

June 2022;

• net interest-bearing debt18 (including Peet Bonds)
of $253.3 million, compared with $245.2 million at
30 June 2022;

• cash and available debt facility headroom of

$148.3 million; and

• Recent acquisitions have resulted in increasing

embedded margins.

• Key projects have environmental and planning

approvals in place.

• Significant value creation to be unlocked through

Flagstone Town Centre and University of
Canberra project.

• a weighted average debt maturity of more than

• Continue to assess selective acquisitions to

two years.

restock the pipeline.

The Group has a strong balance sheet and sufficient
financial capacity to fund the current portfolio of
projects, including accelerating delivery of product, if
required, to meet increases in demand.

During FY23, Peet extended its on-market share buy-
back of up to 5% of its issued ordinary shares. As at
30 June 2023, the Company had acquired 18.6 million
of its ordinary shares, representing approximately 76%
of the total shares to be acquired. On 7 August 2023,
the Company announced that the on-market buy-back
has been extended for a further 12 months to 30
August 2024.

Peet has $75 million of Peet Bonds maturing on
7 June 2024. They will be repaid on maturity via
cash and available headroom in the senior debt
facility and/or other refinancing options available.

Expanding product offering and geographic
presence to appeal to a wider variety of customers

• Targeting infill projects of major capital cities.

• Two new projects commenced
development/sales during FY23.

• First settlements from nine new projects over
the next four years increasing activation of the
landbank to c.83%.

• Continued focus on increasing the Group’s

townhouse pipeline - currently at 1,200 nationally.

Maintaining strong capital management

• $150m of liquidity available.

• Gearing of 27.7% - within target range.

• Focus on improving operating cash flows.

• Maintaining a disciplined approach to capital

management by aligning production levels and
development spend with sales demand.

• Group well positioned to consider capital

management initiatives to further improve
shareholder returns.

17 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash) / (Total assets less cash, less intangible assets).
18 Including net debt of syndicates consolidated under AASB10.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 13

Value creation

Group Outlook

• Good visibility of future earnings underpinned

by a low-cost land bank.

• Ability to leverage well established funds

management capability where appropriate to
unlock value.

• Continue to assess opportunities to maximise

cycles to unlock value as appropriate.

ESG Commitment

Peet has a long track-record of demonstrating
our commitment to sustainability. We have a
clear framework that focuses on sustainable
practices that create long-term shared value for our
communities, shareholders and people.

Our social sustainability strategy focuses on issues
that will have meaningful impact on both our
residents and our team. Through our partnership
with Black Dog Institute, we also know that
mental health affects 1 in 5 Australians each year.
Supporting mental wellbeing is a priority we share
with the Perth Scorchers, where we are proud to
be the Principal Partner of the men’s and women’s
teams. It was a natural extension for us to bring the
partnerships together to further the conversation
around mental health by engaging players as mental
health ambassadors. By having role models share
their own experiences, we aim to break down the
barriers for people to feel comfortable seeking
support when they most need it.

Environmental sustainability remains a key priority
across the Group, with a broad range of initiatives
and milestones achieved this year. We were pleased
to be recognised for our commitments by being
named Australia’s Most Sustainable Community
Developer by Capital Finance International, and
Brabham Estate being awarded the 2023 Platinum
Waterwise Development of the Year, adding to its
already impressive green credentials.

As a values-driven organisation, our biggest
asset is our people and fostering a culture that
promotes engagement and sense of belonging.
We encourage a culture of innovation and creativity,
whilst demonstrating unwavering commitment to
delivering high quality outcomes for our partners
and stakeholders.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 14

Residential markets continue to adjust from their
peak following interest rate increases, inflationary
pressures and low consumer confidence. Despite
markets being at or close to bottoming, and with
an improvement in enquiry levels, we expect the
market will require a stabilisation in interest rates
before buyer confidence begins to return and market
conditions begin to normalise.

Markets remain undersupplied, with underlying
fundamentals remaining positive including low
unemployment, above-average wage growth,
and increasing immigration. Peet will continue
to focus on executing our strategic objectives
and maintaining a disciplined approach to capital
management. The Group remains well positioned
to navigate the current environment, with a flexible
delivery program in place to respond strongly to
a recovery in activity and to take advantage of a
shortage of market supply.

Given the current economic backdrop, which
Peet expects to persist throughout 1H24, Peet
will continue to adopt a cautious approach as it
enters FY24 with earnings expected to be strongly
weighted to 2H24.

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 FY23 performance.

Lastly, thank you to our shareholders, customers
and key stakeholders who continue to support Peet.
I look forward to updating you on our progress
during the coming year.

Brendan Gore

Managing Director and
Chief Executive Officer

“ Peet will continue to focus on executing

our strategic objectives and maintaining a
disciplined approach to capital management.
The Group remains well positioned to navigate
the current environment, with a flexible
delivery program in place to respond strongly
to a recovery in activity and to take advantage
of a shortage of market supply.”

Image: Tonsley Village, SA

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 15

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.

48%
of EBITDA19,20

COMPRISED21
57%
OF GROUP’S
LAND BANK

20,238 lots22

GDV23
$8.6 billion

19 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures.
20 Before inter-segment transfers and other unallocated items.
21 By number of lots.
22 Includes equivalent lots.
23 Gross Development Value.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 16

LOTS SOLD24

LOTS SETTLED24

FY23
616

FY23
769
Revenue of
$265.1 million

FY22

1,022

FY22

655
Revenue of
$201.3 million

EBITDA25

FY23
$58.2 million

FY22

$43.8 million

EBITDA25
MARGIN

FY23
22%

FY22

22%

24 Includes equivalent lots.
25 EBITDA is a non-IFRS measure. Calculated before intersegment transfers and other unallocated items.

Image: Fort Largs, SA (Artist’s Impression)

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 17

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.

34%
of EBITDA26,27

COMPRISED28
37%
OF GROUP’S
LAND BANK

13,315 lots29

GDV30
$4.0 billion

26 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates.
27 Before inter-segment transfers and other unallocated items.
28 By number of lots.
29 Includes equivalent lots.
30 Gross Development Value.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 18

LOTS SOLD31

LOTS SETTLED31

FY23
521

FY23
1,137

FY22

1,513

FY22

1,338

REVENUE32

FY23
$33.9 million

FY22

$48.2 million

EBITDA33,34

FY23
$21.7 million

FY22

$33.7 million

EBITDA33,34
MARGIN

FY23
64%

FY22

70%

31 Includes equivalent lots.
32 Includes share of net profit of equity accounted investments.
33 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates.
34 Before intersegment transfers and other unallocated items.

Image: Newhaven Tarneit, VIC

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 19

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.

18%
of EBITDA35,36

35 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in joint ventures.
36 Before inter-segment transfers and other unallocated items.
37 By number of lots.
38 Includes equivalent lots.
39 Gross Development Value.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 2 0

COMPRISED37
6%
OF GROUP’S
LAND BANK

2,177 lots38

GDV39
$1.0 billion

LOTS SOLD40

LOTS SETTLED40

FY23
262

FY23
688

FY22

628

FY22

521

REVENUE41

FY23
$64.2 million

FY22

$34.4 million

EBITDA42,43

FY23
$41.3 million

FY22

$19.6 million

EBITDA42,43
MARGIN

FY23
64%

FY22

50%

40 Includes equivalent lots.
41 Includes share of net profit of equity accounted investments.
42 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in joint ventures.
43 Before intersegment transfers and other unallocated items.

Image: Googong, NSW

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 21

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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 2 2

Peet recognised as a leader in sustainable residential development

In recognition of Peet’s Environmental, Social and
Governance (ESG) commitments and focus on creating
long-term shared value for shareholders, customers and
partners, Peet was announced as the Best Sustainable
Community Developer (Australia) 2023 by Capital Finance
International (CFI).

Judges highlighted Peet’s environmentally conscious
development with particular focus on water conservation,
energy efficiency, circular economies, biodiversity
preservation and land restoration.

Peet’s commitment to driving social outcomes and
creating opportunities for inclusion and belonging within
its communities contributed to the award win, including
community engagement activities, its national grants
program, and partnerships with the Perth Scorchers
and Black Dog Institute. Initiatives promoting employee
wellbeing and engagement were also highlighted by
the judges.

Brabham awarded Platinum Waterwise Development of the Year 2023

Brabham Estate added to its sustainability credentials
having been awarded the Platinum Waterwise
Development of the Year at the 2023 Waterwise
Recognition Event, celebrating Western Australia’s
most water efficient new urban areas.

The award supports developers to implement best-practice
water efficiency standards in the design and delivery of
new land developments. Brabham Estate was recognised
for its waterwise and sustainable initiatives.

With a 6-Star ‘Green Star’ accreditation from the Green
Building Council of Australia, Brabham Estate offers a
Waterwise Front Landscaping Package that aims to save
homeowners up to 50% of their total water usage in their

gardens. The package includes a smart controller installed
into every home that automatically adjusts watering times
based on weather data received from the Weather Station
installed in the Estate’s first Smart Park.

The Estate is home to the Green Homes Display,
Australia’s most sustainable two-storey display home*.
This international award-winning display home showcases
a waterwise garden display containing water-tolerant plant
species, drought-tolerant lawn, treated soils to help retain
moisture and even a worm farm and compost.

Brabham Estate is developed in partnership with
Development WA.

*Based on CSIRO database and correct as at July 2022.

Image: L-R: Hon. Simone Frances McGurk, Minister for Training, Water and Youth, Renato Colasante, Manager of Partnering Development WA, Luke Oliver,
Senior Development Manager Peet Limited, Mr Ross Love, CEO at Water Corporation

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 2 3

Walking together towards reconciliation

Peet is pleased to have launched its first Reflect
Reconciliation Action Plan (RAP).

to foster community inclusion, embracing and celebrating
cultural diversity and promoting community wellbeing.

Peet has a long history of consulting and collaborating
with Aboriginal and Torres Strait Islander Peoples across
the country. Since commencing our formal reconciliation
journey, it has been important to listen, learn, and have
conversations about how we can respect, recognise and
celebrate Aboriginal and Torres Strait Islander culture and
heritage within our operations and communities.

Throughout this period we have worked in consultation
with our Cultural Advisor and community consultants,
along with the members of the RAP Working Group,
who have helped guide and inform the engagement
process and the outcomes included within the RAP.

Chloe Watego, a Gubbi Gubbi-based woman was engaged
to design custom artwork to support Peet’s RAP. The
artwork shares the story of Peet’s purpose Defining future
places of belonging, and the journey each person makes
towards reconciliation through listening and engaging
with Aboriginal and Torres Strait Islander Peoples.

Peet’s approach to sustainability and driving positive social
impact aligns with the commitments included in its RAP

As we continue this journey of belonging together, we
respect Aboriginal and Torres Strait Islander Peoples’
continued connection with Country and value the rich
cultural contribution they make to the communities in
which we live, work and play.

Image: Managing Director and CEO, Brendan Gore, with artwork designed by Chloe Watego

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 24

Image: Celebrating NAIDOC Week at Brabham Estate, WA

Driving energy efficient built form outcomes

As Peet continues to focus on positive environmental
outcomes across the portfolio, opportunities are
proactively identified to reduce energy consumption in
building design, reducing a project’s carbon footprint and
delivering cost savings for homebuyers.

Peet’s latest built form development in Adelaide,
Woodville Rd, will be designed with all 185 homes
to be 100% electric. All homes are designed
to optimise solar orientation through the urban grid
orientation and crossover location.

The Little Eagle 82-townhouse development in Nudgee,
Brisbane, will also feature 100% electric homes, as will
the 36 townhouses at The Landing, Strathpine. Electric
heat pump hot water systems, electric cooktops and
LED lighting will be featured in all homes across both
projects reducing operating greenhouse gas emissions and
reducing energy peak demand.

At Googong in regional NSW, Peet has committed to
exceeding the legislated BASIX energy target, which sets a
benchmark on energy saving requirements for the approval

of all NSW homes. The compliance program is being
delivered through a rebate program for all dwellings where
occupants are incentivised to deliver to the requirements of
the Googong Design guidelines. A rebate is provided to the
owner at the time of occupancy on sufficient delivery of
the sustainability incentives.

Image: Little Eagle Nudgee, Brisbane, QLD (Artist Impression)

Image: Woodville Rd, Adelaide, SA (Artist’s Impression)

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 2 5

Corporate Calendar FY24

24 August 2023
Release of results for FY23

11 September 2023
Record date for FY23 annual
dividend of $0.04 per share

2 January 2024
Interest payment date for
unlisted bonds issued in 2021

February 2024
Release of results for 1H24

22 September 2023
Annual Report and Notice of 2023
AGM dispatched to shareholders

1 April 2024
Interest payment date for unlisted
bonds issued in 2021

2 October 2023
Interest payment date for unlisted
bonds issued in 2021

7 June 2024
Final interest payment date and
maturity date for unlisted bonds
issued in 2019

16 October 2023
Payment date for FY23 final
dividend of $0.04 per share

25 October 2023
2023 AGM

7 December 2023
Interest payment date for unlisted
bonds issued in 2019

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 2 6

Image: Tonsley Village, SA

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 27

Financials
2023

Contents

Directors’ Report ............................................................................................................................................................... 29

Auditor’s Independence Declaration ................................................................................................................................. 57

Corporate Governance Statement .................................................................................................................................... 58

Financial Report ................................................................................................................................................................ 59

Directors’ Declaration ........................................................................................................................................................ 96

Independent Auditor’s Report to the Members of Peet Limited ...................................................................................... 97

Securityholder Information ............................................................................................................................................. 104

Corporate Directory ......................................................................................................................................................... 106

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 2 8

Directors’ Report
Year ended 30 June 2023

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 2023 (“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, FAICD, FCPA, FCIS, FGIA

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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 2 9

Directors’ Report
Year ended 30 June 2023

1. DIRECTORS continued

ANTHONY JAMES LENNON (ANTHONY),
BA, Grad Dip Bus Admin

NON-EXECUTIVE DIRECTOR

Anthony Lennon joined Peet in 1991 and became a Director in 1996.

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,

primarily as a corporate and financial advisor to Australian and international public and privately-owned companies.

Mr Allen is a Non-executive Director of Eclipx Group Limited, where he chaired its Audit and Risk Management

Committee from March 2015 to November 2022 and retired from that Committee in March 2023. He remains a

member of its Remuneration Committee. He is also a Non-executive Director of TopCo Investments Pte Ltd, a

Singapore company which is the holding company of Real Pet Food Company Limited, where he chairs its Risk and

Sustainability Committee and is the Deputy Chair of its Finance and Audit Committee.

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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 3 0

VICKI KRAUSE,
BJuris LLB W.Aust, GAICD

INDEPENDENT NON-EXECUTIVE DIRECTOR

Vicki Krause was appointed to the Board of Peet Limited in April 2014.

An experienced commercial lawyer, Ms Krause had a 25 year career as a senior corporate executive with the

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.

He is the former Managing Director of Austal Ships and Fleetwood Corporation Limited and spent 28 years with Capral

Aluminium (formerly Alcan Australia) in various financial and senior executive positions.

Mr McKinnon is a Director of DGL Group Limited; the former Non-executive Chairman of M8 Sustainable Limited; and

was previously a Non-executive Director of Bankwest, Brierty Limited, Programmed Maintenance Services Limited

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 2023, the Group employed 194 people in offices throughout Australia and managed and marketed a land

bank of more than 35,700 lots in the growth corridors of major mainland Australian cities.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 31

Directors’ Report
Year ended 30 June 2023

3. REVIEW OF OPERATIONS AND CONSOLIDATED RESULTS

OPERATING AND FINANCIAL REVIEW

KEY RESULTS 1

• Operating profit 2 and statutory profit 3 after tax of $70.1 million

• Earnings per share of 14.8 cents per share

• FY23 dividends of 7.5 cents per share, fully franked

• Revenue 4 of $363.7 million, with 2,594 lots settled 6

• EBITDA 5 margin of 29% on EBITDA 5 of $107.0 million

• Net cash inflows from operations (before acquisitions) of $89.0 million

• $476.4 million worth of contracts on hand 6 as at 30 June 2023

• Gearing 7 of 27.7%

FINANCIAL COMMENTARY

The Peet Group achieved a record operating profit 2 and statutory profit 3 after tax of $70.1 million for the year ended

30 June 2023 (“FY23”), which represents an increase of 34% on the previous financial year (“FY22”) which was also

a record earnings performance.

The material improvement in profit was driven by:

• prudent focus on monetising the high number of contracts on hand at the start of the financial year, many of which

had high margins as a result of strong price growth;

• the changing product mix, including an improved performance from medium density townhouse product;

• continued focus on unlocking value by appropriately managing the Group’s significant landbank; and

• continued focus on cost management and operational efficiencies.

The Group derived EBITDA 5 of $107.0 million during FY23, compared to $86.0 million in FY22, with an EBITDA 5 margin

of 29%, compared to the margin achieved in FY22 of 30%.

The performance has resulted in:

• an operating and statutory earnings per share of 14.8 cents for FY23, compared to operating and statutory earnings

per share of 10.8 cents in FY22; and

• strong cash inflows from operations (before acquisitions) of $89.0 million, compared to $80.1 million in FY22.

1 Comparative period is 30 June 2022, 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 $318.9 million (FY22: $266.6 million) and share of net profits from associates and joint ventures of $44.8 million (FY22: $24.1 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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 3 2

OPERATIONAL COMMENTARY

Sales activity during FY23 reduced from elevated levels in FY22 (FY23: 1,399 lots 8, compared to FY22: 3,163 lots 8).

This is attributable to a combination of external factors and the Company’s measured response to those factors.

Multiple interest rate rises and inflationary pressures contributed to more subdued market conditions during FY23,

reducing the borrowing capacity of buyers, especially of first home buyers. This, together with continued supply chain

constraints and labour shortages impacting builders, has negatively impacted consumer sentiment.

Peet has responded to the underlying market and broader economic conditions by reducing the number of new stage

releases and allocating resources to the creation of lots pre-sold during the peak 2022 selling period.

As previously communicated to the market, Peet pro-actively focused on protecting its balance sheet and its high level

of contracts on hand during FY23, resulting in strong settlements (FY23: 2,594 lots 8, compared to FY22: 2,514 lots 8)

during the year. This was achieved by the close management of construction programs and the low cancellation rate for

unconditional contracts.

The Group enters FY24 in a strong capital position, with gearing 9 at 30 June 2023 within the target range of 20% to 30%

(27.7%, compared to 30 June 2022: 29.9%), and a still solid level of contracts on hand with a value of $476.4 million.

Development projects

Key highlights

Lot sales 8

Lot settlements 8:

– Land only

– Medium Density

Revenue

EBITDA 10

EBITDA 10 margin

FY23

616

769

682

$265.1m

$58.2m

22%

FY22

1,022

655

577

$201.3m

$43.8m

22%

Var (%)

(40%)

17%

18%

12%

32%

33%

Earnings from Development projects are derived from settlements, and with the focus on creating lots to meet

settlement targets, the Development business performed strongly during FY23. Lot settlements from Flagstone City

(Qld), which was previously included in Funds Management prior to the purchase of the remaining 50% interest in the

property, first settlements from new project commencements in Queensland and South Australia and the settlement of

the New Beith (Qld) property contributed positively.

Includes equivalent lots.

8
9 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash)/(Total assets less cash, less intangible assets).
10 EBITDA is a non-IFRIS measure and is calculated before inter-segment transfers and other unallocated items.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 3 3

Directors’ Report
Year ended 30 June 2023

3. REVIEW OF OPERATIONS AND CONSOLIDATED RESULTS continued

Funds Management projects

Key highlights

Lot sales 11

Lot settlements 11

Revenue

Share of net profit of equity accounted investments

EBITDA 12

EBITDA 12 margin

FY23

521

1,137

$19.4m

$14.5m

$21.7m

64%

FY22

1,513

1,338

$38.3m

$10.0m

$33.7m

70%

Var (%)

(66%)

(15%)

(49%)

45%

(36%)

(6%)

The performance of the Group’s Funds Management projects is predominantly driven by sales from syndicates and

settlements from co-investment projects. Lower sales in FY23, compared to FY22 has resulted in lower fee income.

While overall settlements were lower in FY23, compared to FY22, the strong performance from Newhaven (Vic)

contributed positively to the overall performance.

Joint Ventures

Key highlights

Lot sales 11

Lot settlements 11

Revenue

Share of net profit of equity accounted investments

EBITDA 12

EBITDA 12 margin

FY23

262

688

$34.4m

$29.8m

$41.3m

64%

FY22

628

521

$25.8m

$13.6m

$19.6m

50%

Var (%)

(58%)

32%

33%

119%

111%

14%

Joint ventures performed strongly on the back of increased lot settlements and equity accounted profits, particularly at

Googong (NSW).

Land portfolio metrics

Lot sales 11

Lot settlements 11

Contracts on hand 11 as at 30 June

– Value

CAPITAL MANAGEMENT

FY23

1,399

2,594

FY22

3,163

2,514

Var (%)

(56%)

$476.4m

$930.0m

(49%)

The Group’s continuing focus on capital management and the monetising of contracts on hand during FY23 contributed

to increased cash inflows from operations (prior to acquisitions) of $89.0 million (FY22: $80.1 million).

As at 30 June 2023, the Group had:

• gearing 13 of 27.7% (30 June 2022: 29.9%);

• net interest-bearing debt 14 (including Peet Bonds) of $253.3 million, compared with $245.2 million at 30 June 2022;

• cash and available debt facility headroom of $148.3 million; and

• a weighted average debt maturity of more than two years.

Includes equivalent lots

11
12 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures and is calculated before inter-segment transfers and other unallocated items.
13 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash)/(Total assets less cash, less intangible assets).
14 Including net debt of syndicates consolidated under AASB10.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 3 4

The Group has a strong balance sheet and sufficient financial capacity to fund the current portfolio of projects, including

accelerating delivery of product, if required, to meet increases in demand.

During FY23, Peet Limited extended its on-market share buy-back of up to 5% of its issued ordinary shares. As at

30 June 2023, the Company had acquired 18.6 million of its ordinary shares, representing approximately 76% of the

total shares to be acquired. On 7 August 2023, the Company announced that the on-market buy-back has been

extended for a further 12 months to 30 August 2024.

Peet has $75 million of Peet Bonds maturing on 7 June 2024. They will be repaid on maturity via cash and available

headroom in the senior debt facility and/or other refinancing options available.

DIVIDENDS

Subsequent to year end, the Directors declared a final dividend for FY23 of 4.0 cents per share, fully franked. This brings

the total dividend for FY23 to 7.5 cents per share, fully franked. This compares to the FY22 dividend of 6.25 cents per

share, fully franked. The final FY23 dividend is to be paid on Monday, 16 October 2023, with a record date of Monday,

11 September 2023.

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, cultural

heritage 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’s financial risk management policies are set out in note 17 to the Financial Report.

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 and product typology (house and

land, medium density townhouses and low-rise apartments).

GROUP STRATEGY

Peet is well positioned for growth and value creation with its key strategic focus areas for FY24 and beyond continuing

to be:

• investing in high quality land in strategic locations across the country;

• expanding product offering and geographic presence to appeal to a wider variety of customers; and

• maintaining strong capital management.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 3 5

Directors’ Report
Year ended 30 June 2023

3. REVIEW OF OPERATIONS AND CONSOLIDATED RESULTS continued

OUTLOOK

Residential markets continue to adjust from their peak as a result of interest rate increases, inflationary pressures and

low consumer confidence.

Despite markets being at or close to bottoming, and with an improvement in enquiry levels, we expect the market will

require a stabilisation in interest rates before buyer confidence begins to return and market conditions begin to normalise.

Markets remain undersupplied, with underlying fundamentals remaining positive including low unemployment, above-

average wage growth, and increasing overseas migration.

Peet will continue to focus on executing our strategic objectives and maintaining a disciplined approach to capital

management. The Group remains well positioned to navigate the current environment, with a flexible delivery program

in place to respond strongly to a recovery in activity and to take advantage of a shortage of market supply.

Given the current economic backdrop, which Peet expects to persist throughout 1H24, Peet will continue to adopt a

cautious approach as it enters FY24 with earnings expected to be strongly weighted to 2H24.

4. EARNINGS PER SHARE

Basic and diluted earnings per share

2023
Cents

14.8

2022
Cents

10.8

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 2023. 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 FY23 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 2022, the Directors declared a final dividend of 4.0 cents per share, fully franked, in respect of the year ended

30 June 2022. The dividend of $19.0 million was paid on Friday, 14 October 2022.

In February 2023, the Directors declared an interim dividend of 3.5 cents per share, fully franked, in respect to the year

then ending 30 June 2023. The dividend of $16.5 million was paid on Thursday, 13 April 2023.

Subsequent to year end, the Directors declared a final dividend for FY23 of 4.0 cents per share, fully franked. This brings

the total dividend for FY23 to 7.5 cents per share, fully franked. This compares to the FY22 dividend of 6.25 cents per

share, fully franked. The final FY23 dividend is to be paid on Monday, 16 October 2023, with a record date of Monday,

11 September 2023.

The Directors have resolved to keep the Company’s Dividend Reinvestment Plan deactivated.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 3 6

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 would require the Group to report its annual greenhouse gas (“GHG”) emissions and energy use if it had

operational control of facilities (sites) that emit greenhouse gases, produce energy, or consume energy at or above the

specified GHG emission and energy thresholds per financial year.

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 FY23 reporting period.

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

–

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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 37

Directors’ Report
Year ended 30 June 2023

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, Mr A J Lennon will retire by rotation and offer himself for re-election. Any other Board of Directors’-

related matters will be announced separately to the market.

12. REMUNERATION

Dear Shareholder,

Peet is pleased to present its Remuneration Report for the year ended 30 June 2023. 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 $70.1 million for the 2023 financial year,

compared to an operating net profit after tax and a statutory profit after tax of $52.3 million in the previous year.

While the statutory financial statements show total revenue of $363.7 million and earnings before interest, tax,

depreciation and amortisation (“EBITDA”) of $107.0 million for the 2023 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 $545.2 million and EBITDA of $189.1 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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 3 8

Key remuneration outcomes during the year ended 30 June 2023 included:

• The MD’s base pay for the year ended 30 June 2023 was amended for the first time since the year ended 30 June 2015.

• NEDs’ fees were increased during the year ended 30 June 2023 after last being increased in the year ended 30 June 2019.

• During the year, long-term incentive performance conditions were tested as at 30 June 2022 in respect to the

performance over the three years ended on that date, and following approval from shareholders at the 2022 Annual

General Meeting, resulted in the full vesting of performance rights (FY20 performance rights).

• Short-term incentives will be paid to KMP in respect of the year ended 30 June 2023, 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 2023 are included

in the tables on pages 44 and 45.

There are no changes to the base pay of the KMP for the year ending 30 June 2024.

We encourage our shareholders to use the cash value of remuneration realised table on page 44 to assess the

remuneration outcomes for KMP in the year ended 30 June 2023 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 2023 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

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 3 9

Directors’ Report
Year ended 30 June 2023

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

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

T Gallagher

Chief Operating Officer (appointed 1 November 2022)

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

$1,008,535

Refer below 4

T Gallagher 5

On-going appointed 1 November 2022

$525,000

3 months base pay inclusive of superannuation

B C Fullarton

On-going commenced 21 October 2013

$485,000

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

1. Base pays, inclusive of superannuation, for the year ended 30 June 2023. 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.

5. T Gallagher was appointed as Chief Operating Officer on 1 November 2022.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 4 0

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

following key criteria for good reward governance practices:

• 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 2023

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 2024 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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 41

Directors’ Report
Year ended 30 June 2023

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 were amended with effect from 1 July 2022 (after previously being amended with effect from

1 July 2018). The fees payable to 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.

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 2023

and 2022 ranged between 50% and 100% of the relevant Executive’s base pay. However, the Board of Directors has

the discretion to either pay over and above or less than these amounts.

Each year, the Remuneration Committee considers the appropriate targets and key performance indicators (“KPIs”)

to link to the STI plan and the level of payout if targets are met for the Managing Director and Chief Executive Officer

(“MD”). This may include setting any maximum payout under the STI plan and minimum levels of performance to

trigger payment of STI. The MD will then generally set the STI KPIs to apply to the other Executives.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 4 2

KPIs for the MD are set by reference to the following criteria:

• financial;

• strategy;

• stakeholder engagement;

• people, processes and culture; and

• health, safety and environment.

For the year ended 30 June 2023, the MD was assessed as follows against the KPIs:

Category

Financial

Strategic

Stakeholder

People, processes and culture

Health, safety and environment

Weighting (%)

Achieved (%)

70.00%

10.00%

7.50%

5.00%

70.00%

10.00%

7.50%

5.00%

100.00%

For the year ended 30 June 2022, the MD’s KPIs linked to the STI plan were based on similar criteria. For the year

ended 30 June 2022 the MD was assessed to have been eligible to 100.00% of his maximum STI entitlement.

For the year ended 30 June 2023, the KPIs for Executives were determined by the MD, based on the above criteria.

The Executives were assessed to have been eligible for between 87.5% and 100% of their maximum STI entitlement

in respect to FY23.

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.

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 2023 and 2022

ranged between 50% and 100% of the relevant Executive’s base pay.

Each year, the Remuneration Committee considers the appropriate targets and KPIs to link to the LTI plan and the level

of payout if targets are met for the Executives. This may include setting any maximum payout under the LTI plan and

minimum levels of performance to trigger payment of LTI. Further details of the Company’s LTI structures are included

in the section titled ‘Share-based compensation’.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 4 3

Directors’ Report
Year ended 30 June 2023

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 45. The Company believes that the additional information provided in the 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

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

218,008

218,774

121,721

130,487

99,097

92,517

121,721

115,244

159,097

152,517

983,243

913,732

–

1,008,535

1,849,375

937,300

–

1,702,887

1,623,271

1,008,535

1,849,375

937,300

–

Other key management personnel

T Gallagher 5

P J Dumas

D Scafetta

B C Fullarton

Total

2023

2022

2023

2022

2023

2022

2023

2022

331,875

459,708

460,000

324,708

326,432

457,500

412,500

1,573,791

1,198,932

250,294

254,625

276,450

175,000

242,500

220,000

922,419

671,450

99,977

661,085

191,641

155,424

–

434,080

–

1,350,566

191,641

–

10,000

–

22,891

21,877

12,781

13,049

10,405

9,252

12,781

11,524

10,405

9,252

25,292

23,568

94,555

88,522

19,167

25,292

25,000

25,292

23,568

27,500

97,251

76,068

Total 5
$

240,899

240,651

134,502

143,536

109,502

101,769

134,502

126,768

169,502

161,769

3,876,445

1,884,600

4,665,352

2,659,093

701,313

1,400,710

953,091

680,424

525,000

1,161,580

660,000

3,944,027

2,138,091

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 2022 and June 2023. 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. T Gallagher was appointed as Chief Operating Officer on 1 November 2022. The remuneration shown above only includes the amounts attributable to the period as KMP.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 4 4

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

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

218,008

218,774

121,721

130,487

99,097

92,517

121,721

115,244

159,097

152,517

–

983,243

1,008,535

913,732

937,300

1,702,887

1,008,535

1,623,271

937,300

10,000

Other key management personnel

T Gallagher 5

P J Dumas

D Scafetta

B C Fullarton

Total

2023

2022

2023

2022

2023

2022

2023

2022

331,875

250,294

459,708

254,625

460,000

276,450

324,708

175,000

326,432

175,000

457,500

242,500

412,500

220,000

1,573,791

922,419

1,198,932

671,450

–

22,891

21,877

12,781

13,049

10,405

9,252

12,781

11,524

10,405

9,252

25,292

23,568

94,555

88,522

19,167

25,292

25,000

25,292

23,568

27,500

97,251

76,068

–

1,039,017

1,276,523

1,039,017

1,276,523

277,552

314,054

396,317

188,864

238,336

246,103

299,621

1,026,543

934,274

–

Total 5
$

240,899

240,651

134,502

143,536

109,502

101,769

134,502

126,768

169,502

161,769

3,066,087

3,161,123

3,854,994

3,935,616

878,858

1,053,679

1,157,767

713,864

763,336

973,603

959,621

3,620,004

2,880,724

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 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.

5. T Gallagher was appointed as Chief Operating Officer on 1 November 2022. The remuneration shown above only includes the amounts attributable to the period as KMP. Share based payments includes those

granted in the period prior to becoming a KMP.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 4 5

Directors’ Report
Year ended 30 June 2023

13. REMUNERATION REPORT (AUDITED) continued

The relative proportions of remuneration that are linked to performance and those that are fixed based on the above

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

T Gallagher 2

P J Dumas

D Scafetta

B C Fullarton

Fixed remuneration

At risk STI

At risk LTI

2023

2022

2023

2022

2023 1

2022 1

100%

33%

40%

46%

49%

50%

100%

30%

42%

46%

–

33%

28%

24%

25%

–

30%

24%

23%

–

34%

32%

30%

26%

25%

–

40%

34%

31%

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.

2. T Gallagher was appointed as Chief Operating Officer on 1 November 2022. The above split relates to his remuneration attributable to the period as KMP.

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 and any set performance hurdles have been met, subject to

the Board’s discretion.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 4 6

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 PRs 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 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.

During FY23, the Company received a waiver from the ASX Listing Rules that allowed the Board to apply discretion in

respect to the vesting of PRs, subject to obtaining shareholder approval. This approval was obtained at the 2022 AGM.

Refer to the notice of that meeting and results of that meeting for further information and to Note 3 on page 49.

Options granted under the PESOP and PRs granted under the PPRP carry no dividend or voting rights.

LAPSE OF OPTIONS AND/OR PRs

Unexercised options and/or PRs will lapse upon the earlier to occur of a variety of events specified in the rules of the

PESOP and PPRP including, on the date or in circumstances specified by the Board in the invitation, failure to meet the

options’ or PRs’ exercise conditions in the prescribed period or on a specified anniversary date of grant of the options or

PRs, as determined by the Board.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 47

Directors’ Report
Year ended 30 June 2023

13. REMUNERATION REPORT (AUDITED) continued

The table below summarises the status of the Company’s options and performance rights granted to Executives:

d
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b
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3 4

0
0
0

0
0
2
1

0
0
0

0
0
2
1

–

7
9
7
7
9
8

–

4
5
7

4
4
2
1

7
6
6

2
9
8

8
0
8

5
3
3
1

9
8
0
7
5
6

–

8
2
8

9
0
2
1

0
2
6
7
6
8

9
2
6

5
5
3
1

6
8
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4
5
5
1

2
9
1
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6
4

6
8
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4
5
7

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9
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6
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PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 4 8

NOTE 1

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 20 November 2019,

19 November 2020, 16 November 2021 and 26 October 2022, being the dates of Peet Limited’s 2019, 2020, 2021 and

2022 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 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”),

1 July 2021 to 30 June 2024 (“FY22 Performance Period”) and 1 July 2022 to 30 June 2025 (“FY23 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 FY20 Performance Period, the proportion of PRs to vest subject to FUM growth was 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

50%

Pro-rata between 50% and 70%

Pro-rata between 70% and 100%

100%

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 4 9

Directors’ Report
Year ended 30 June 2023

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 terms, none of the FY20 PRs subject to the FUM growth condition satisfied that condition. However, the Board

was of the view that this was 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 was subject to Peet obtaining shareholder

approval and the notice of the 2022 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. Shareholders

approved the amendment at the 2022 AGM. The FUM growth-related FY20 PRs were fully vested in FY23.

For the FY21 and FY22 Performance Period 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

50%

Pro-rata between 50% and 70%

Pro-rata between 70% and 100%

100%

For the FY23 Performance Period 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 $30 million

$30 million

$30 million to $50 million

$50 million to $60 million

Greater than $60 million

50%

Pro-rata between 50% and 70%

Pro-rata between 70% and 100%

100%

The FY21, FY22 and FY23 PRs remain unvested.

NOTE 4

The PRs granted in respect to FY20 Performance Period were convertible to ordinary shares on a 1:1 basis, with 60%

subject to the EPS growth vesting condition.

The PRs granted in respect to the FY21, FY22 and FY23 Performance Periods are convertible to ordinary shares on a

1:1 basis, with 75% subject to the EPS growth vesting condition.

The EPS growth vesting condition will be measured as the average growth in operating EPS over the relevant

Performance Period, with the EPS derived for the previous financial year as the base year.

The earnings component of EPS is calculated as net profit measured in accordance with Australian Accounting

Standards, excluding write-downs of inventories and development costs and increases in the carrying value of

inventories during the relevant financial year, and is subject to other adjustments at the Board’s discretion.

EPS growth is then compared to the Board’s internal target EPS growth for the relevant performance period.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 5 0

Of the PRs subject to EPS growth, the proportion vested for the FY20 Performance Period and to vest for the FY21

and FY22 Performance Periods is 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

50%

Pro-rata between 50% and 80%

Pro-rata between 80% and 100%

Greater than 120% of the EPS growth target

100%

Of the PRs subject to EPS growth, the proportion to vest for the FY23 Performance Period will be as follows:

Performance level

Less than 67% of the EPS growth target

67% of the EPS growth target

67% to 100% of the EPS growth target

100% to 133% of the EPS growth target

Proportion of performance rights that may be eligible to vest

50%

Pro-rata between 50% and 80%

Pro-rata between 80% and 100%

Greater than 133% of the EPS growth target

100%

Additionally is it proposed that EPS growth of more than 133% of the EPS Target will be available to apply to any

shortfall in the FUM growth targets (set out above), up to a maximum of 100% of the FY23 PRs granted.

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 therefore resolved that 100% of the FY20 PRs subject to the EPS growth condition vested

in accordance with their terms.

FY21, FY22 and FY23 PRs remain unvested.

NOTE 5

Net Change – Other shows T Gallagher’s PRs held prior to his appointment as COO on 1 November 2022.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 51

Directors’ Report
Year ended 30 June 2023

13. REMUNERATION REPORT (AUDITED) continued

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

Net Change
– Other 1

Exercised
during
the year

Lapsed/
forfeited
during
the year

Balance
at end of
the year

Vested and
exercisable
at the end
of the year

Directors

A W Lennon

T J Allen

V Krause

R J McKinnon

A J Lennon

B D Gore

Other key management personnel

T Gallagher

P J Dumas

D Scafetta

B C Fullarton

–

6,172,243

1,335,808

–

1,634,750

729,486

1,167,070

417,219

385,430

231,788

321,192

599,298

–

(1,937,025)

(86,207)

(692,417)

(162,790)

(454,653)

–

5,571,026

2,097,797

930,310

1,327,763

798,484

1,033,609

–

278,736

167,625

210,728

Includes performance rights held by T Gallagher prior to his appointment as COO on 1 November 2022..

During the year ended 30 June 2023, 1,554,886 PRs (2022: 904,344) had vested and 3,333,092 (2022: 178,067) were

exercised by KMP at $ Nil exercise price. In order to settle the PRs exercised during year ended 30 June 2023, the

Company purchased ordinary shares in the Company on-market on behalf of KMP.

On 26 October 2022, 1,335,808 FY23 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 2022 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 2023, no PRs (includes PRs exercisable by non-KMP) have vested or 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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 5 2

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%

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

2023

70,143

34.1%

70,143

34.1%

14.79

36.6%

14.79

36.6%

7.50

1.24

(15.1%)

(13.4%)

23.7%

(21.7%)

31.9%

DETAILS OF REMUNERATION: CASH BONUSES, OPTIONS AND PRs

For each cash bonus, grant of options and/or PRs included in the tables within the remuneration report, the percentage

of the available bonus or grant that was paid, or that vested and the percentage that was forfeited because the person

did not meet the service and performance criteria, is set out below. Generally, no part of the bonuses forfeited is

payable in future years. Subject to the rules of the PESOP and PPRP no options or PRs will vest if the conditions are not

satisfied, subject to the discretion of the Board (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%

–

2023

2022

2021

2020

–

100%

–

2025

2024

2023

2022

–

778,686

295,118

–

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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 5 3

Directors’ Report
Year ended 30 June 2023

13. REMUNERATION REPORT (AUDITED) continued

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

T Gallagher 3

95%

P J Dumas

88%

12%

D Scafetta

100%

B C Fullarton

100%

2023

2022

2021

2020

2023

2022

2021

2020

2023

2022

2021

2020

2023

2022

2021

2020

–

100%

–

100%

–

100%

–

100%

–

2025

2024

2023

2022

2025

2024

2023

2022

2025

2024

2023

2022

2025

2024

2023

2022

234,210

70,843

–

224,680

91,624

–

135,117

55,100

–

187,233

69,269

–

1.
2.
3. T Gallagher was appointed as Chief Operating Officer on 1 November 2022. The Maximum total Value of grant yet to expense includes performance rights held prior to becoming a KMP.

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 2023.

Directors

B D Gore

Other key management personnel

T Gallagher 4

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
$

34%

32%

30%

26%

25%

1,167,496

1,808,451

364,649

336,866

202,583

280,722

90,000

661,308

176,465

434,094

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.
4. T Gallagher was appointed as Chief Operating Officer on 1 November 2022.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 5 4

LOANS TO DIRECTORS AND OTHER KEY MANAGEMENT PERSONNEL

There were no loans made to KMP, or their personally-related entities, during the financial year.

VOTING AND COMMENTS MADE AT THE COMPANY’S 2022 ANNUAL GENERAL MEETING

The instructions given to validly appointed proxies in respect of the resolution pertaining to the Company’s 2022

Remuneration Report were as follows:

For

237,070,362

85.88%

Against

38,863,065

14.08%

Proxy’s discretion

122,280

0.04%

Abstain

55,518

The motion was carried as an ordinary resolution on a poll.

INTERESTS IN THE SHARES AND BONDS OF THE COMPANY

Directors

A W Lennon

T J Allen

V Krause

R J McKinnon

B D Gore

A J Lennon

Received
during the
year on
exercise of
PRs

Other
changes
during the
year 1

Balance at
the end of
the year

Balance at
the start of
the year

Bonds

Other
changes
during the
year

Balance at
the end of
the year

–

97,764,685

1,875

(1,875)

Balance at
the start of
the year

97,764,685

142,054

–

50,000

–

18,264

160,318

–

50,000

7,243,704

1,331,344

5,306,679

1,937,025

1,331,344

–

Other key management personnel

T Gallagher

P J Dumas

D Scafetta

B C Fullarton

–

1,265,949

1,020,000

603,850

86,207

692,417

162,790

454,653

540,702

626,909

–

1,958,366

1,182,790

1,058,503

Includes shares held by T Gallagher prior to his appointment as COO on 1 November 2022.

Since 30 June 2023, no PRs (includes PRs exercisable by non-KMP) have vested or are exercisable at the date of this

report. No other options and PRs have been issued.

END OF REMUNERATION REPORT (AUDITED)

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 5 5

Directors’ Report
Year ended 30 June 2023

14. INDEMNITY OF OFFICERS AND AUDITORS

During the financial year, the Company paid a premium in respect of a Directors’ and Officers’ insurance policy that

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.

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 57.

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

23 August 2023

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 5 6

Auditor’s Independence Declaration

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 57

Corporate Governance Statement
Year ended 30 June 2023

A copy of the Group’s corporate governance policies and practices in place during the financial year ended 30 June 2023

is available at the following link:

https://www.peet.com.au/-/media/peet/documents/corporate/corporate/corporate-governance/

22082551ppc2023corporategovernancestatement.pdf

Unless otherwise stated, these are consistent with the 4th edition of the ASX Corporate Governance Council’s

Principles and Recommendations.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 5 8

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

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
23 August 2023. 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

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 5 9

Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the year ended 30 June 2023

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

2023
$’000

318,908

(266,351)

(2,502)

44,775

94,830

(24,918)

69,912

70,143

(231)

69,912

2022
$’000

266,608

(215,624)

(3,085)

24,095

71,994

(19,913)

52,081

52,316

(235)

52,081

Total comprehensive income for the year

69,912

52,081

Earnings per share for profit attributable to the ordinary equity holders of the Company

Basic and diluted earnings per share

Notes

Cents

14.79

Cents

10.83

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with

the accompanying notes.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 6 0

Consolidated Balance Sheet
As at 30 June 2023

Current assets

Cash and cash equivalents

Receivables

Contract assets

Inventories

Total current assets

Non-current assets

Receivables

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

Other financial liabilities

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

1. Refer to note 2 (g).

Notes

2023
$’000

38,790

19,535

6,139

181,305

245,769

45,879

537,349

194,353

2,962

2,209

1,778

784,530

1,030,299

48,733

8,841

74,445

1,562

2,650

12,332

23,911

172,474

12,277

217,656

1,249

4,688

19,872

13,192

268,934

441,408

588,891

366,416

327

200,760

567,503

21,388

588,891

Restated 1
2022
$’000

55,380

23,046

16,970

205,400

300,796

41,977

451,693

188,006

2,938

2,507

1,922

689,043

989,839

27,679

14,808

49,935

1,958

–

10,028

17,397

121,805

19,554

250,683

1,766

3,162

16,760

13,031

304,956

426,761

563,078

374,733

584

166,142

541,459

21,619

563,078

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 61

Consolidated Statement of Changes in Equity
For the year ended 30 June 2023

Contributed
equity
$’000

Reserves
$’000

Retained
profits
$’000

Notes

Total
$’000

Non-
controlling
interest
$’000

Total
equity
$’000

Balance at 1 July 2021 – Restated

2(g)

378,916

(1,449)

136,783

514,250

16,314

530,564

Profit for the year

Other comprehensive income

Total comprehensive income for the year

–

Share buyback, including transaction costs

(4,183)

–

3,323

(635)

(655)

–

584

52,316

(235)

52,081

–

52,316

(235)

52,081

–

(4,183)

3,323

(635)

(655)

–

5,540

(4,183)

3,323

(635)

4,885

(22,957)

–

(22,957)

166,142

541,459

21,619

563,078

–

374,733

584

166,142

541,459

21,619

563,078

–

(8,317)

–

366,416

–

3,439

(3,696)

–

327

70,143

(231)

69,912

–

70,143

(231)

69,912

–

(8,317)

3,439

(3,696)

(35,525)

–

(8,317)

3,439

(3,696)

(35,525)

200,760

567,503

21,388

588,891

18,25

Share-based payments

Vesting of performance rights

Transactions with non-controlling interest

Dividends paid

Balance at 30 June 2022

Balance at 1 July 2022

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

Dividends paid

Balance at 30 June 2023

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 6 2

Consolidated Statement of Cash Flows
For the year ended 30 June 2023

Cash flow s 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 inflow/(outflow ) from investing activities

Cash flows from financing activities

Dividends paid

Repayment of borrowings

Proceeds from borrowings

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 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

2023
$’000

2022
$’000

338,787

(242,622)

(51,906)

(25,304)

36,903

749

(19,541)

37,066

(900)

–

(9,230)

1,525

(5,000)

15,052

1,447

(35,525)

(120,649)

161,420

(50,000)

(1,978)

–

(8,371)

(55,103)

(16,590)

55,380

38,790

276,715

(177,363)

(33,917)

(21,593)

16,210

(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)

(34,092)

(8,745)

64,125

55,380

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 6 3

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

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

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 ................................................................................................................................ 83

19. Dividends .................................................................................................................................................................... 84

20. Reconciliation of profit after income tax to net cash inflow from operating activities ............................................... 84

21. Fair value measurement ............................................................................................................................................. 85

OTHER NOTES

22. Remuneration of auditors ........................................................................................................................................... 86

23. Contingencies and commitments .............................................................................................................................. 86

24. Parent entity financial information and subsidiaries ................................................................................................... 87

25. Share-based payments ............................................................................................................................................... 89

26. Matters subsequent to the end of the financial year ................................................................................................. 91

27. Other accounting policies ........................................................................................................................................... 92

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 6 4

BASIS OF REPORTING

A. GOING CONCERN BASIS

This section of the financial report sets out the basis of

$245.8 million, current liabilities of $172.5 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

$148.3 million. Further, for the year ended 30 June 2023

policy is described in the note to which it relates.

the Group generated operating cash flows of $89.0 million

At 30 June 2023, the Group had current assets of

before land acquisitions.

On 4 April 2019, Peet Limited issued 75,000 notes with a

face value of $1,000 per note (the Notes). The Notes are

unsecured and carry a fixed interest rate of 6.75%. The

Notes are due to be repaid on 7 June 2024 and as such

the Notes are classified as a current liability on the Group’s

balance sheet at 30 June 2023.

Peet is assessing several alternatives including utilising

senior debt facility capacity and/or raising new debt from

existing or new sources to refinance the Notes. Given the

existing cash and available headroom in its senior bank

debt facility and the other options available, the Directors

are confident the Group will be able to repay the Notes by

the maturity date. As such, it is appropriate to prepare the

financial statements on a going concern basis.

1. REPORTING ENTITY

This financial report covers the consolidated financial

statements for the Consolidated Entity consisting of Peet

Limited and its subsidiaries (Group). The Financial Report

is presented in the Australian currency. Peet Limited is a

company limited by shares, incorporated and domiciled

in Australia. Its registered office and principal place of

business is; Level 7, 200 St Georges Terrace, Perth WA

6000. The nature of the operations and principal activities

of the Group are described in the Directors’ Report. Peet

Limited is a for- profit entity.

2. BASIS OF PREPARATION

The Financial Report is a general purpose financial report

which:

• has been prepared in accordance with Australian

Accounting Standards and Interpretations issued by

the Australian Accounting Standards Board and the

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 some financial assets and liabilities which

have been measured at fair value;

• 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

ASIC Corporations Instrument 2016/191.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 6 5

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

2. BASIS OF PREPARATION continued

The Group’s share of its associates’ post-acquisition

B. PRINCIPLES OF CONSOLIDATION

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

2023. The Group controls an investee if and only if the

Group has:

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

• power over the investee (i.e. existing rights that give it

investment.

the current ability to direct the relevant activities of the

investee);

• exposure, or rights, to variable returns from its

involvement with the investee; and

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

• the ability to use its power over the investee to affect

or made payments on behalf of the associate.

its returns.

Unrealised gains on transactions between the Group and

The Group re-assesses whether or not it controls an

its associates are eliminated to the extent of the Group’s

investee if facts and circumstances indicate that there are

interest in the associates. Unrealised losses are also

changes to one or more of the three elements of control.

eliminated unless the transaction provides evidence of an

Consolidation of a subsidiary begins when the Group obtains

impairment of the asset transferred.

control over the subsidiary and ceases when the Group

D. INVESTMENTS IN JOINT ARRANGEMENTS

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.

Joint arrangements are arrangements of which two or more

parties have joint control. Joint control is the contractual

agreed sharing of control which exists only when decisions

about the relevant activities require unanimous consent

of the parties sharing control. Joint arrangements are

Profit or loss and each component of other comprehensive

income (OCI) are attributed to the equity holders of the

classified as either a joint operation or joint venture, based
on the rights and obligations arising from the contractual

parent of the Group and to the non-controlling interests,

obligations between the parties to the arrangement.

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.

C. ASSOCIATES

To the extent the joint arrangement provides the Group

with rights to the individual assets and obligations arising

from the joint arrangement, the arrangement is classified

as a joint operation and as such, the Group recognises its:

• assets, including its share of any assets held jointly;

• liabilities, including its share of any liabilities incurred

Associates are all entities over which the Group has

jointly;

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.

• share of revenue from the sale of the output by the joint

operation; and

• expenses, including its share of any expenses incurred

jointly.

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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 6 6

E. CHANGES IN OWNERSHIP INTERESTS

3. HOW TO READ THE FINANCIAL REPORT

The Group

treats

transactions with non-controlling

The notes to the financial statements are set out in four

interests that do not result in a gain or loss of control as

specific sections:

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

• Performance for the year

• Operating assets and liabilities

interests to reflect their relative interests in the subsidiary.

• Capital management

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.

F. CHANGES IN ACCOUNTING POLICIES

• Other notes

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:

The accounting policies adopted in the preparation of the

financial report are consistent with those followed in the

• Note 5 – constraints on project management & selling

fees and estimates on percentage completion

preparation of the Group’s annual financial statements

• Note 9 – net realisable value

for the year ended 30 June 2022, except for changes

arising from the adoption of new and amended accounting

standards and interpretations effective as at 1 July 2022.

Several other amendments and interpretations apply for

the first time on 1 July 2022, but do not have a material

impact on the Group. The Group has not early adopted

any standard, interpretation or amendment that has been

issued but is not yet effective.

G. RESTATEMENT OF COMPARATIVES

The prior period comparatives have been restated to

reduce contract assets, deferred tax liability and opening

retained earnings as at 1 July 2021 by an amount of

$2.9 million, $0.9 million and $2.0 million, respectively,

to eliminate the Group’s historic ownership interest in

contract assets. The restatement has no impact on the

Consolidated Statement of Profit or Loss and Other

Comprehensive income, basic and diluted earnings per

share and the Consolidated Statement of Cash Flows.

• Note 11 – ECL allowance

• Note 15 – provision for development costs to complete

• 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 L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 67

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 6 8

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PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 6 9

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

5. REVENUE

SALE OF LAND AND BUILT FORM

2023
$’000

2022
$’000

Revenue from the sale of land and built form is recognised

on settlement of the sale. This represents the point when

Revenue from contracts with customers

control (title) has passed to the customer.

– Sales of land and built form 1

– Project management and

selling services 2

Other income

283,566

213,331

25,439

47,923

9,903

5,354

318,908

266,608

1. Revenue from sales of land in the reporting period includes the settlement revenue of New Beith, Qld

($76.1 million).

2. Revenue reduction in the reporting period is consistent with the lower lot sales volumes.

RECOGNITION AND MEASUREMENT

The main streams of revenue recognised by the Group

relate to the sale of land and built form, and the provision

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.

of management and selling services. Revenue from

SELLING SERVICES

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

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

recognised will not occur when the associated uncertainty

An analysis of sales fall over rates and minimum

with the variable consideration is subsequently resolved.

selling prices is performed for all business

When a performance obligation is satisfied by transferring

segments by location. This analysis, on a portfolio

a promised good or service to the customer before the

basis, is used to determine an appropriate

customer pays consideration or before payment is due,

constraint for revenue recognised against project

the Group presents the revenue as a contract asset,

management and selling fees.

unless the Group’s rights to the amount of consideration

are unconditional, in which case the Group recognises

a receivable.

Percentage completion

An analysis of development milestones is

performed to determine an appropriate percentage

The Group recognises contract fulfilment costs as an asset

of completion for completed lots.

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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 70

Revenue from related parties included above:

Related party expenses

2023
$’000

2022
$’000

Revenue from related parties ¹

Associates

KMP remuneration 1

Short-term employee benefits

Project management and selling services

13,379

32,949

Post-employment benefits

Syndicate administration services

950

1,174

Share-based payments

Joint arrangements

Project management and selling services

2,019

16,348

3,786

37,909

1. Refer to note 3 for information about related party transactions.

2023
$’000

5,218

192

2,066

7,476

2022
$’000

4,441

165

2,211

6,817

1. Refer to note 3 for how information on related party transactions is disclosed.

6. EXPENSES

LAND AND DEVELOPMENT COSTS

Land and development costs represent the portion of the

land and development costs associated with the lots sold

2023
$’000

2022
$’000

during the year (cost of sales).

BORROWING COSTS

Profit before income tax includes
the following specific expenses:

Land and development costs

188,099

141,275

Net realisable value adjustments

Amortised interest and finance expense

–

7,199

1,941

8,499

Total land and development cost

195,298

151,715

Depreciation 1

– Right-of-use assets

– Property, plant and equipment

Amortisation

1,364

947

165

1,341

956

167

Total depreciation and amortisation

2,476

2,464

32,503

17,441

18,633

68,577

30,887

15,294

15,264

61,445

Employee benefits expense 2

Project management, selling and other
operating costs

Other expenses 3

Total other expenses

Total expenses

Finance costs

Interest and finance charges

– Bank borrowings

– Lease liabilities

Interest on corporate bonds

Amount capitalised

Total finance costs

Borrowing costs incurred for the construction of any

qualifying asset are capitalised during the period of time

that is required to complete and prepare the asset for its

intended use or sale. Other borrowing costs are expensed

in the period they are incurred. The capitalisation rate used

to determine the amount of finance costs to be capitalised is

the weighted average interest rate applicable to the Group’s

outstanding borrowings during the year (refer note 17).

7. EARNINGS PER SHARE

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)

2023

70,143

2022

52,316

474,145,115 483,029,946

14.79

10.83

266,351

215,624

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 to note 25 for the number of Performance Rights (PRs)

outstanding at 30 June 2023. These PRs are contingently

issuable shares and accordingly not included in diluted

earnings per share.

14,207

203

7,814

318

12,221

11,790

(24,129)

(16,837)

2,502

3,085

1. Refer to note 27 (b), (c) and (d) for accounting policies.
2. Refer to note 27 (e) for accounting policies.
3. This includes fair value adjustments on Other Financial Liabilities (refer to note 10 (b)).

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 71

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

8. TAXES

RECOGNITION AND MEASUREMENT

A. INCOME TAX EXPENSE

Current taxes

2023
$’000

2022
$’000

22,311

17,566

(507)

(32)

21,804

17,534

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

2,322

settle the liability simultaneously.

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:

Decrease/(increase) in deferred
tax assets

Increase in deferred tax liabilities

Tax reconciliation

Profit before income tax

Tax at Australian tax rate of 30%

Tax effect of amounts which are not
assessable or deductible:

Share of net profit of associates

Employee benefits

Franking credits

Deferred tax assets not recognised

Sundry items

Under/(over) provision in prior periods

2,779

335

3,114

24,918

2,379

19,913

1,040

(516)

2,074

3,114

2,895

2,379

94,830

28,449

71,994

21,598

(237)

(118)

(2,777)

206

(433)

(172)

(1,608)

806

(692)

232

(448)

24,918

19,913

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

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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 72

B. DEFERRED TAX ASSETS

Inventory
$’000

3,916

201

–

4,117

(225)

–

3,892

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

At 1 July 2022

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 2023

C. DEFERRED TAX LIABILITIES

Movements

At 1 July 2021 – Restated

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

At 1 July 2022

Charged/(credited):

– to profit or loss

Total deferred tax liabilities

Set off against deferred tax liabilities
pursuant to set off provisions

At 30 June 2023

Cash flow
hedges
$’000

Receivables
$’000

Tax losses
$’000

Property, plant
and equipment
(including
leases)
$’000

459

13,531

1,409

3,995

1,658

–

15,189

338

–

1,747

(1,038)

–

2,957

(459)

–

15,189

1,747

2,957

24,103

(2,457)

–

12,732

758

–

2,505

(206)

–

2,751

1,090

1,185

Other
$’000

242

(184)

Total
$’000

23,552

516

24,103

(24,103)

–

(1,040)

23,065

(23,065)

–

Total
$’000

37,968

2,895

40,863

(24,103)

16,760

Finance
charges
$’000

28,114

Accrued
income
$’000

Inventory
$’000

Share of joint
arrangements
$’000

3,724

2,511

3,464

2,450

30,564

272

3,996

(635)

1,876

808

4,272

Other
$’000

155

–

155

30,564

3,996

1,876

4,272

155

40,863

5,391

35,955

(3,235)

761

(2,104)

(228)

2,022

6,294

–

155

2,074

42,937

(23,065)

19,872

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 73

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

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.

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.

2023
$’000

452,399

198,327

94,475

745,201

2022
$’000

466,388

141,688

76,490

684,566

9. INVENTORIES

Cost of acquisition

Capitalised development costs

Capitalised finance costs

Total inventory at cost

Provision for write-downs
to net realisable value 1

Total inventory

Current

Non-current

Total inventory

(26,547)

(27,473)

10. INVESTMENTS ACCOUNTED FOR
USING THE EQUITY METHOD

718,654

657,093

Investments in associates and joint ventures are accounted

for using the equity method of accounting.

181,305

537,349

718,654

205,400

451,693

657,093

A. MOVEMENTS IN CARRYING AMOUNTS
OF INVESTMENTS IN ASSOCIATES AND
JOINT VENTURES

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.

2023
$’000

2022
$’000

RECOGNITION AND MEASUREMENT

Carrying amount at 1 July

188,006

232,622

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

Acquisitions

Dividends

Capital returns

Share of profit after income tax

Derecognition of investment in Peet
Flagstone City Pty Ltd

–

(36,903)

(1,525)

44,775

–

16,927

(16,210)

(4,663)

24,095

(64,765)

Carrying amount at 30 June

194,353

188,006

are expected to be sold within the next 12 months.

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 L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 74

B. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (JVs) INCLUDING SUMMARISED

FINANCIAL INFORMATION

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As at 30 June 2023

% $’000

$’000

Associates

Peet Alkimos Pty Limited, WA

18,683

254,989

6,232

76,219

191,222

85,194

17,055

Peet Caboolture Syndicate Limited, QLD 20

11,577

27,551

12,216

1,900

25,013

Peet Werribee Land Syndicate, VIC

6,126

15,094

4,366

304

16,549

5,376

2,839

17,500

26,713

503

2,931

6,318

200

528

1,083

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

As at 30 June 2022

Associates

4,279

136,100

5,085

107,738

27,555

14,996

84,843

13,191

10,214

5,537

5,818

14,708

16,564

1,230

4,468

–

19,015

382

17,532

9,507

8,766

8,251

18,038

1,459

1,155

727

577

4,196

155,699

9,711

20,000

130,185

65,093

173,211

59,625

29,811

25,148

48,211

25,273

45,780

2,306

1,153

1,429

194,353

5,431

1,570

798

837

44,775

Peet Alkimos Pty Limited, WA

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

11,249

14,460

10,318

1,157

14,234

4,870

2,700

21,271

47,330

1,346

8,082

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

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

269

1,387

3,653

576

824

* Refer to note 10(c) for further breakdown of financial information of joint ventures

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.

In FY22, Peet Limited provided a cash advance facility to a shareholder of Peet Alkimos Pty Ltd. At 30 June 2023, the

liability is measured at fair value of $7.3 million (Current: $2.6 million, non-current: $4.7 million; 30 June 2022 non-current:

$3.2 million) which is based on the net present value of all estimated cash inflows and outflows over the term of the facility.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 75

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD continued

C. ADDITIONAL SUMMARISED INFORMATION IN RELATION TO AMOUNTS INCLUDED

IN ASSETS, LIABILITIES AND PROFIT/(LOSS) OF JOINT VENTURES

As at 30 June 2023

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 2022

Googong Township Unit Trust

Peet Golden Bay Pty Limited

Peet Mt Barker Pty Limited

Peet No. 1895 Pty Limited

Peet Brabham Pty Limited

1 Excluding trade and other payables and provisions

Cash and cash
equivalents
$’000

Current
financial
liabilities 1
$’000

4,055

5,483

4,998

4,223

6,230

5,664

6,660

21,835

313

–

25,254

338

–

628

21,500

–

Non-current
financial
liabilities 1
$’000

20,000

–

97,962

42,570

54,000

–

61,290

56,789

Interest
expense
$’000

Income tax
expense/
(benefit)
$’000

–

(7)

621

492

5,653

(316)

134

491

706

3,137

299

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 76

11. RECEIVABLES

Related party balances with associates and joint ventures

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

Non-current

Loans to associates and joint ventures 2

– Amortised cost

– ECL allowance

– At fair value

Total receivables

2023
$’000

8,218

1,420

3,522

(522)

6,897

19,535

23,832

(2,279)

24,326

45,879

65,414

2022
$’000

7,314

105

8,022

(3,434)

11,039

23,046

19,124

(1,971)

24,824

41,977

65,023

included above:

Current

Trade receivables

Loans to associates and joint ventures

– At amortised cost (net of ECL allowance)

– At fair value

Non-current

2023
$’000

2022
$’000

582

648

3,000

6,897

4,588

11,039

Loans to associates and joint ventures

– At amortised cost (net of ECL allowance)

21,553

– At fair value

Total

24,326

56,358

17,153

24,824

58,252

Movements in loans to associates and joint ventures:

2023
$’000

57,604

5,000

(15,052)

8,224

55,776

2022
$’000

64,300

650

(4,975)

(2,371)

57,604

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 (2022: $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 1

Refer to note 27(a) for accounting policy on financial assets

Carrying amount at 30 June

and note 21 for fair value disclosures.

1. This includes movements in ECL allowance and fair value adjustments.

KEY ESTIMATES
ECL allowance

ECL allowance is determined on a probability of

default on a loan by loan basis.

12. CONTRACT ASSETS

Current

Accrued income 1

Total contract assets

2023
$’000

6,139

2022
$’000

16,970

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 to note 5 for revenue related accounting policies.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 77

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

13. PAYABLES

RECOGNITION AND MEASUREMENT

Current

Trade payables and accruals

Advance from joint operators

Total payables

2023
$’000

2022
$’000

Where the Group enters into unconditional contracts with

land vendors to purchase properties for future development

45,116

3,617

48,733

24,936

2,743

27,679

that contain deferred payment terms, these borrowings are

initially measured at fair value and subsequently carried at

amortised cost. The unwinding of the discount applied to

the acquisition price is included in finance costs. Generally,

the land vendor holds the title over the property until

settlement has occurred.

Refer note 21 for fair value disclosures.

The below table analyses the maturity of the Group’s land

vendor liability obligation:

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.

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

Total contractual cash flows

In some joint arrangement contracts, costs are reimbursed

Carrying amount of liabilities

as incurred during development. As revenue is only

recognised on settlements, reimbursements received

are recognised as advance from joint operators until

15. PROVISIONS

settlement.

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

Employee entitlements

2023
$’000

2022
$’000

Provision for development costs
to complete

8,841

14,808

Non-current

8,841

14,808

Employee entitlements

Provision for development costs
to complete

13,845

23,075

Provision – Other

(1,568)

(3,521)

Total provisions

2023
$’000

9,230

13,845

–

23,075

21,118

2023
$’000

3,162

4,070

2022
$’000

15,197

9,230

13,845

38,272

34,362

2022
$’000

3,165

3,947

16,679

10,285

23,911

17,397

242

149

12,450

12,882

500

13,192

37,103

–

13,031

30,428

12,277

21,118

19,554

34,362

Movements in provisions during the financial year are set

out below:

1. Relating to the asset acquisition of Peet Flagstone City Pty Ltd in FY22.

Carrying amount at 1 July

– Additional provision recognised

– Paid during year

– Expired during the year

2023
$’000

30,428

17,216

(6,997)

(3,544)

2022
$’000

25,963

13,730

(7,888)

(1,377)

Carrying amount at 30 June

37,103

30,428

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 78

KEY ESTIMATES
Provision for development costs to complete

Costs not yet incurred for lots settled are taken

into account in the cost of sales for these lots.

The portion of cost of sales relating to these

future costs are recognised as a provision in the

Statement of Financial Position. The actual costs

may vary from the estimated future costs due to

variations in estimates.

RECOGNITION AND MEASUREMENT

Provisions are recognised when the Group has a present

legal or constructive obligation as a result of past events;

it is probable that an outflow of resources will be required

to settle the obligation; and the amount has been reliably

estimated. Provisions are not recognised for future

operating losses.

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 settled.

DEVELOPMENT COSTS TO COMPLETE

Provisions for development costs not yet incurred for lots

Provisions are measured at

the present value of

settled are recognised at each reporting date based on the

management’s best estimate of the expenditure required

estimated costs to complete.

to settle the present obligation at the balance date. The

discount rate used to determine the present value reflects

16. INTERESTS IN JOINT OPERATIONS

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

Details of aggregate share of assets, liabilities, revenue,

expenses and results of joint operations.

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.

Total
assets
$’000

Total
liabilities
$’000

Revenue
$’000

Expenses
$’000

6,533

1,935

5,679

4,009

107

(469)

18,965

266

20,595

15,615

7,615

2,176

7,815

6,659

590

372

4,396

1,350

22,567

4,099

7,269

6,516

As at 30 June 2023

The Village at
Wellard, WA

Lightsview
Joint Venture, SA

Redbank Plains
Joint Venture, QLD

As at 30 June 2022

The Village at
Wellard, WA

Lightsview
Joint Venture, SA

Redbank Plains
Joint Venture, QLD

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 79

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

CAPITAL MANAGEMENT

RECOGNITION AND MEASUREMENT

Borrowings are initially recognised at fair value, net of

This section outlines how the Group manages its capital

transaction costs incurred. Borrowings are subsequently

and related financing costs.

For the purpose of the Group’s capital management,

capital includes:

• issued capital;

• debt facilities; and

measured at amortised cost. Any difference between the

proceeds (net of transaction costs) and the redemption

amount is recognised in the statement of profit or loss

over the period of the borrowings using the effective

interest method.

For the purpose of presentation in the statement of cash

• other equity reserves attributable to the equity holders

flows, cash and cash equivalents includes cash on hand,

of the parent.

The Group’s objectives when managing capital are to:

deposits held at call with financial institutions, other short-

term, highly liquid investments with original maturities of

three months or less that are readily convertible to known

• safeguard its ability to continue as a going concern;

amounts of cash and which are subject to an insignificant

• continue to provide returns to shareholders and benefits

risk of changes in value, and bank overdrafts.

for other stakeholders;

Refer note 21 for fair value disclosures.

• maintain an efficient capital structure to reduce the cost

of capital; and

• ensure all covenants are complied with.

In order to maintain or adjust the capital structure, the Group

may adjust the amount of dividends paid to shareholders,

return capital to shareholders, issue new shares or sell

assets to reduce debt.

The Group monitors capital on the basis of the gearing ratio.

This ratio is calculated as total interest-bearing liabilities

(including deferred payment obligations) less cash, divided

by total assets adjusted for market value, net of cash and

cash equivalents less intangible assets. The market value

is based on the latest independent mortgage valuations,

adjusted for settlements, development costs and titled

stock between the date of valuation and 30 June 2023. At

30 June 2023, the bank covenant gearing ratio was 26.4%

(2022: 28.6%).

DEBT FACILITIES

The following provides details of the loans and borrowings

utilised as at 30 June 2023:

Facility
amount
$’000

Utilised
amount 2
$’000

Effective
interest
rate
%

Bank loans 1 – note a

300,000

143,360

7.8

Peet notes – note b

Peet notes 2019

Peet notes 2021

Face
value
$’000

Carrying
amount 3
$’000

Effective
interest
rate
%

75,000

74,445

74,296

150,000

148,741

7.2

9.3

17. FINANCIAL LIABILITIES

NET DEBT

1. Secured. During the reporting period, the Group’s main bank facility was increased from $175 million
to $275 million and was extended to 1 October 2025. The bank loan in Peet Flagstone City Pty Ltd
was repaid.

2. Excludes bank guarantees at 30 June 2023 of $36.7 million (30 June 2022 $33.7 million). Refer note 23

for bank guarantees information.
3. Net of transaction and finance costs.

Borrowings – Current

Borrowings – Non-current

Total borrowings*

Cash and cash equivalents

Net debt

2023
$’000

74,445

217,656

292,101

2022
$’000

49,935

250,683

300,618

(38,790)

(55,380)

253,311

245,238

* Excludes vendor financing. Refer note 14 for vendor financing on deferred payment terms.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 8 0

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 $835 million (2022: $807

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 2023.

The Group’s main bank facility of $275 million expires

on 1 October 2025. The Group also has bank facilities

associated with Peet Yanchep Land Syndicate ($17 million,

expires on 31 October 2024) and Peet R B Plains Pty Ltd

($6 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:

0 – 1 years

1 – 2 years

2 – 5 years

Total contractual cash flows

2023
$’000

11,117

23,795

132,524

167,436

2022
$’000

6,011

32,414

76,725

115,150

Carrying amount of liabilities

143,360

102,355

B. PEET BONDS AND NOTES

Peet bonds Series 2, Tranche 1

FY22 borrowings included Peet issued 500,000 Bonds

at a face value of $100 per bond with a maturity date of

5 October 2022. These bonds were unsecured and carry a

floating interest rate of BBSW+4.65% margin. The bonds

were fully repaid in October 2022.

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 note with a maturity date of 7 June 2024.

These notes are unsecured and carry a fixed interest rate

of 6.75%. These notes are classified as a current liability

as at 30 June 2023. Refer to note 2(a) for the repayment

of these notes.

Peet Notes 2021

as follows:

Face value of bonds and notes issued

150,000

200,000

2023
$’000

2022
$’000

Transaction costs

Cumulative interest expense

Cumulative coupon payable

(2,504)

(3,499)

147,496

196,501

32,537

36,179

(31,292)

(34,417)

1,245

1,762

Total bonds and notes liability

148,741

198,263

The bonds and notes are repayable as follows:

0 – 1 years

1 – 2 years

2 – 5 years

2023
$’000

86,199

6,424

83,043

2022
$’000

59,523

83,579

83,583

Total contractual cash flows

Carrying amount of liabilities

175,666

226,685

148,741

198,263

C. LEASE LIABILITIES

Current

Office space leases

Non-current

Office space leases

Total lease liabilities

2023
$’000

2022
$’000

1,562

1,958

1,249

2,811

1,766

3,724

During the year, total cash outflows for these leases is

$2.2 million (2022: $2.1 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:

0 – 1 years

1 – 2 years

2 – 5 years

2023
$’000

1,811

642

1,199

3,652

2,811

2022
$’000

2,149

1,465

385

3,999

3,724

On 4 June 2021, Peet issued 75,000 notes to eligible

Total contractual cash flows

professional and sophisticated investors at a face value

Carrying amount of liabilities

of $1,000 per note with a maturity date of 30 September

2026. These notes are unsecured and carry a floating

interest rate of BBSW+4.85% margin.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 81

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

17. FINANCIAL LIABILITIES continued

INTEREST RATE RISK

CHANGES IN LIABILITIES ARISING
FROM FINANCING ACTIVITIES

The Group’s main interest rate risk arises from cash, loans

to associates and joint ventures measured at fair value and

Borrowings
$’000

Lease
liabilities
$’000

300,618

(9,229)

–

712

292,101

3,724

(1,978)

1,065

–

2,811

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.

1 July 2022

Cash flows

Lease renewal

Others

30 June 2023

LIQUIDITY RISK

Liquidity risk includes the risk that the Group, as a result of

INTEREST RATE SENSITIVITY

their operations:

• will not have sufficient funds to settle a transaction on

its due date;

The sensitivity analysis below has been determined

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

• will be forced to sell financial assets at a value which is

the reporting period. A 100 basis point increase and 50

less than what they are worth; or

• may be unable to settle or recover a financial asset at all.

Prudent liquidity risk management implies maintaining

sufficient cash, the availability of funding through an

adequate amount of committed credit facilities to meet

obligations when due, and the ability to close-out market

positions. Due to the dynamic nature of the underlying

business, the Group aims at maintaining flexibility in

funding by keeping committed credit lines available, and

regularly updating and reviewing its cash flow forecasts to

assist in managing its liquidity.

The Group has unused borrowing facilities which can

further reduce liquidity risk (refer to note 17 for analysis of

basis point decrease used in the interest rate sensitivity

analysis were determined based on the level of debt that

was renewed and forecasters’ economic expectations and

represents management’s assessment of the possible

change in interest rates.

At 30 June 2023, the Group had the following mix of financial

assets and liabilities exposed to variable interest rates:

Financial assets

Cash and cash equivalents (floating)

Loans to associates and joint ventures
measured at fair value

2023
$’000

2022
$’000

38,790

31,223

55,380

35,863

maturities on borrowing facilities).

Financial liabilities

CREDIT RISK

Borrowings (floating, unhedged)

(217,656)

(226,405)

The cash component of financial assets is considered

The potential impact of a change in interest rates by +100/

to have low credit risk as the counterparties are banks

-50 basis points on profit and equity has been tabulated

with high credit ratings assigned by international credit-

below:

rating agencies. An expected credit loss provision of $2.8

million (2022: $5.4 million) has been recognised for loans

measured at amortised cost of $27.3 million (2022: $27.1

million) (refer to note 11 and 27).

Post-tax profits
Increase/
(decrease)

Equity
Increase/
(decrease)

-50 basis points

2023
$’000

517

2022
$’000

476

2023
$’000

517

+100 basis points

(1,034)

(953)

(1,034)

2022
$’000

476

(953)

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 8 2

18. CONTRIBUTED EQUITY AND RESERVES

A. MOVEMENTS IN ORDINARY SHARE CAPITAL

Date

Details

30 June 2021

Closing balance

Share buyback

30 June 2022

Closing balance

Share buyback

30 June 2023

Closing balance

Number
of shares

483,300,489

(4,167,796)

479,132,693

(7,791,331)

471,341,362

$’000

378,916

(4,183)

374,733

(8,317)

366,416

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

attributable to the issue of new shares, options and/or performance rights for the acquisition of a business are not included

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 2021

Share based payment

Buyback on vesting of performance rights 3

Transactions with non-controlling interest

At 30 June 2022

At 1 July 2022

Share based payment

Buyback on vesting of performance rights 4

At 30 June 2023

Share-based
payments
reserve 1
$’000

Non-
controlling
interest
reserve 2
$’000

13,998

(15,447)

3,323

(635)

–

16,686

3,439

(3,696)

16,429

–

(655)

(16,102)

–

(16,102)

Total
$’000

(1,449)

3,323

(635)

(655)

584

3,439

(3,696)

327

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 3,756,353 shares to settle the vesting of FY16, FY17, FY18, FY19 and FY20 Performance Rights.

In FY22, the Company purchased 540,660 shares to settle the vesting of FY16, FY18 and FY19 Performance Rights.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 8 3

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

19. DIVIDENDS

Declared and paid during the period

Prior year fully franked dividend 4.0 cents, paid on 14 October 2022 (2022: 2.5 cents)

3.5 cents, paid on 13 April 2023 (2022: 2.25 cents)

2023
$’000

19,023

16,502

35,525

2022
$’000

12,083

10,874

22,957

Dividend not recognised at year end

Final dividend 4.0 cents per share to be paid on 16 October 2023 (2022: 4.0 cents per share)

18,854

19,165

Franking credit balance

Franking account balance as at the end of the financial year at 30% (2022: 30%)

Franking credits that will arise from the payment of income tax

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

70,331

12,332

(8,080)

63,239

10,028

(8,214)

74,583

65,053

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 in receivables

Increase in inventories

Increase in tax liabilities

Increase/(decrease) in payables

Increase in provisions

Increase in deferred tax liabilities

Net cash inflow from operating activities

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 8 4

2023
$’000

69,912

2,311

165

–

(257)

(44,775)

–

234

479

36,903

(3,547)

–

(41)

8,612

(61,562)

2,304

16,999

6,175

3,154

37,066

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

21. FAIR VALUE MEASUREMENT

VALUATION OF FINANCIAL INSTRUMENTS

For financial assets and liabilities, the Group uses the following fair value measurement hierarchy:

• Level 1: the fair value is calculated using quoted prices in active markets for identical assets and liabilities.

• Level 2: the fair value is determined using inputs other than quoted prices included in level 1 that are observable

for the asset or liability either directly (as prices) or indirectly (derived from prices).

• Level 3: the fair value is based on inputs for the asset or liability that are not based on observable market data.

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 2023, the fair value of these loans to associates and joint ventures is $31.2 million (30 June 2022: $35.9 million).

LAND VENDOR LIABILITIES

The Group measures its land vendor liabilities at fair value at each reporting date. The land vendor liability resulting from

the acquisition of the remaining share of Peet Flagstone City Pty Ltd in FY22 is measured as the net present value of

remaining contracted instalments with significant unobservable inputs (level 3 of the fair value hierarchy). The fair value as

at 30 June 2023 for this liability is $21.1 million (30 June 2022: $28.4 million).

PEET BONDS AND NOTES

The fair value of Peet bonds and notes as at 30 June 2023 is detailed below.

Peet bonds Series 2, Tranche 1

Peet Notes 2019

Peet Notes 2021

Total fair value

Total carrying value

2023
$’000

–

71,069

73,130

144,200

148,741

2022
$’000

49,000

74,777

75,295

199,072

198,263

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).

OTHER FINANCIAL LIABILITIES

The financial liabilities are measured at fair value through profit or loss using discounted cashflows with significant

unobservable inputs at each reporting date (level 3).

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 8 5

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

21. FAIR VALUE MEASUREMENT continued

OTHER NOTES

valuation techniques. The Group uses a variety of

Fees for other services

methods and makes assumptions that are based

on market conditions existing at each balance date.

– Tax compliance

– Tax advice

22. REMUNERATION OF AUDITORS

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

Total Fees to Ernst & Young
(Australia)

2023
$

2022
$

385,357

393,000

8,346

54,222

7,800

51,406

92,501

98,350

97,479

56,423

638,776

606,108

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

2023
$’000

36,716

27,789

64,505

2022
$’000

33,713

20,082

53,795

All contingent liabilities are expected to mature within

1 year.

The Directors are not aware of any circumstances or

information, which would lead them to believe that these

contingent liabilities will eventuate and consequently no

provisions are included in the accounts in respect of these

matters.

KEY ESTIMATES
Fair value estimation

The fair value of financial instruments traded in

active markets (such as publicly traded derivatives

and trading and available for sale securities) is

based on quoted market prices at the balance

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

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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 8 6

COMMITMENTS

B. SUBSIDIARIES

On 30 June 2023, the Group had a commitment of

SIGNIFICANT INVESTMENTS IN SUBSIDIARIES

$65.6 million (30 June 2022: $67.1 million) to pay for the

acquisition of approximately 15 hectares of land from

the University of Canberra in ACT. The purchase price

is expected to be paid in instalments over six years

commencing in 2023. A further $5.5 million collaboration

payment is to be paid by the Group to the University of

Canberra in equal instalments between 2023 and 2030.

The consolidated financial statements incorporate the

assets, liabilities and results of the following significant

subsidiaries in accordance with the accounting policy

described in note 2(a):

These payments are subject to settlement, which remains

Name of Subsidiary

conditional at balance date, therefore no liability has been

CIC Australia Pty Limited 1

recognised at 30 June 2023.

24. PARENT ENTITY FINANCIAL

INFORMATION AND SUBSIDIARIES

A. PARENT ENTITY FINANCIAL INFORMATION

SUMMARY FINANCIAL INFORMATION

Peet Craigieburn Pty Limited 2

Peet Southern JV 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

The individual financial statements for the parent entity

Peet Development Management Pty Limited

show the following aggregate amounts:

Restated
2022
$’000

2023
$’000

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

25,099

60,933

Peet No. 73 Pty Limited 2

860,278

556,625

Peet No. 127 Pty Limited 2

104,684

209,970

59,032

121,557

Lightsview Apartments Pty Limited 1

Peet Tonsley Pty Limited 2

JTP Homes Pty Limited 2

366,416

374,732

Peet Tonsley Apartments Pty Limited 2

16,429

267,463

16,686

43,650

Peet Keysborough Pty Limited 2

Peet Jumping Creek Pty Limited 2

Peet 2018 No.2 Pty Limited 2

650,308

435,068

Peet FL Pty Ltd 2

259,338

10,788

Peet Flagstone City Pty Ltd 2

Peet Yanchep Land Syndicate 2

Balance sheet

Current assets

Total assets

Current liabilities

Total liabilities

Shareholders’ equity

Issued capital

Reserves

Share-based payments reserve

Retained profits

Total equity

Profit for the year

Total comprehensive income

Holding

2023
%

2022
%

100

66.4

1.
2.

Incorporated in ACT.
Incorporated in WA.

GUARANTEES ENTERED INTO BY THE

PARENT ENTITY

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

2023
$’000

1,837

2022
$’000

923

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 87

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

24. PARENT ENTITY FINANCIAL

DEED OF CROSS GUARANTEE

INFORMATION AND SUBSIDIARIES
continued

B. SUBSIDIARIES continued

MATERIAL PARTLY-OWNED SUBSIDIARIES

Financial information of subsidiaries that have material non-

controlling interests is provided below. This information is

based on amounts before inter-company eliminations.

Peet Limited and certain wholly-owned subsidiaries are

parties to a deed of cross guarantee under which each

company guarantees the debts of the other. By entering

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.

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Non-controlling interest

Revenue

Loss after tax

Loss attributable to
non-controlling interest

Summarised cash flow information:

Peet Yanchep Land
Syndicate

The companies represent a ‘closed group’ for the purposes

of the Class Order.

2023
$’000

8,867

84,933

1,319

28,823

21,388

224

(688)

231

2022
$’000

1,802

85,210

1,423

21,243

21,619

1,343

(699)

235

Consolidated statement of profit or loss

Revenue

Expenses

Finance costs

Share of net profit of associates
accounted for using the equity method

2023
$’000

2022
$’000

318,236

235,507

(260,652)

(192,398)

(6,678)

44,319

(3,085)

23,579

Net realisable value adjustments

–

(4,129)

Profit before income tax

Income tax expense

Profit for the year

Peet Yanchep Land
Syndicate

Total comprehensive income for
the year

95,225

59,474

(24,967)

(19,852)

70,258

39,622

Operating

Investing

Financing

Net outflow

2023
$’000

(7,829)

(46)

7,821

(54)

2022
$’000

(3,710)

–

3,656

(54)

Peet Limited has provided a $2.4 million loan to Peet

Yanchep Land Syndicate as at 30 June 2023 (30 June

2022: $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 2023 (30 June

2022: $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

Subsidiaries joining the deed of cross
guarantee

Profit for the year

Dividends paid

Retained profits at the end of the
financial year

152,775

136,110

12,586

–

70,257

39,622

(35,525)

(22,957)

200,093

152,775

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 8 8

CONSOLIDATED BALANCE SHEET

25. SHARE-BASED PAYMENTS

Set out below is a consolidated balance sheet at 30 June

2023 of the closed group consisting of Peet Limited and

certain wholly owned subsidiaries.

PEET EMPLOYEE SHARE OPTION PLAN
(PESOP) AND PEET PERFORMANCE
RIGHTS PLAN (PPRP)

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

Total non-current assets

Total assets

Current liabilities

Payables

Land vendor liabilities

Borrowings

Lease liabilities

Other financial liabilities

Current tax liabilities

Provisions

Total current liabilities

Non-current liabilities

Land vendor liabilities

Borrowings

Lease liabilities

Other financial liabilities

Deferred tax liabilities

Provisions

Restated
2022
$’000

2023
$’000

38,731

25,837

172,591

237,159

48,279

453,355

236,623

2,209

2,924

1,778

51,887

41,686

182,366

275,939

51,355

227,200

343,484

2,507

2,734

1,922

745,168

629,202

982,327

905,141

48,340

8,841

74,445

1,562

2,650

12,332

23,325

24,076

14,808

49,935

1,958

–

9,220

13,378

The establishment of the PESOP was approved by the

Board and shareholders during the 2004 financial year

and the Peet Limited PPRP was approved by shareholders

at the 2008 AGM. Employees of any Group Company

(including Executive Directors) will be eligible to participate

in the PESOP and/or PPRP at the discretion of the Board.

INVITATIONS TO APPLY FOR OPTIONS AND/
OR PERFORMANCE RIGHTS

Eligible employees, at the discretion of the Board, may

be invited to apply for options and/or performance rights

on terms and conditions to be determined by the Board

including as to:

• the method of calculation of the exercise price of each

option;

• the number of options and/or performance rights being

offered and the maximum number of shares over which

each option and/or performance rights is granted;

• the period or periods during which any of the options

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;

171,495

113,375

• any applicable conditions which must be satisfied or

12,277

204,296

1,249

4,688

19,962

745

19,554

221,143

1,766

3,161

17,120

150

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

Total non-current liabilities

243,217

262,894

Unless the Board determines otherwise, no payment will

Total liabilities

Net assets

Equity

Contributed equity

Reserves

Retained profits

Total equity

414,712

567,615

376,269

528,872

366,415

374,733

1,107

1,364

200,093

152,775

567,615

528,872

be required for a grant of options and/or performance

rights under the PESOP and/or PPRP.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 8 9

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

25. SHARE-BASED PAYMENTS continued

respect of the Company, or a resolution is passed or an

VESTING AND EXERCISE CONDITIONS

Under the plans, options and/or PRs only vest if the

employees are still employed by the Group at the end of

the vesting period, subject to the Board’s discretion, and

any set performance hurdles have been met.

order is made for winding up the Company. Options

granted under the PESOP and performance rights under

the PPRP carry no dividend or voting rights.

LAPSE OF OPTIONS AND PERFORMANCE
RIGHTS

Generally, as a pre-condition to exercise, any exercise

Unexercised options and/or performance rights will lapse

conditions in respect of an option and/or performance right

upon the earlier to occur of a variety of events specified in

must be satisfied. However, the Board has the discretion

the rules of the PESOP and PPRP including, on the date or

to enable an option and/or performance right holder to

in circumstances specified by the Board in the invitation,

exercise options and/or performance rights where the

failure to meet the options’ or performance rights’ exercise

exercise conditions have not been met, including, for

conditions in the prescribed period or on the expiry date

example, where a court orders a meeting to be held in

of options and/ or performance rights, as determined by

relation to a proposed compromise or arrangement in

the Board.

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.

The inputs for assessing the fair value of the performance rights issued during the year under the PPRP were:

Grant Date

26 Oct 22

Exercise Price

Expiry date

Share price at
grant date

Risk free
interest rate

$0.00

26 Oct 37

$1.10

2.99%

Assessed
fair value

$0.87

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 $3,439,209 (2022: $3,322,585).

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 9 0

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 2023

Options

30 Nov 07

Performance rights

N/A

$4.10

$1.12

1,200,000

21 Dec 30

21 Dec 31

5 Dec 32

21 Nov 33

21 Nov 34

19 Nov 35

16 Nov 36

26 Oct 37

–

$0.96

$0.80

$0.85

$1.33

$1.30

$0.94

91,036

1,065,114

580,682

349,739

255,970

904,344

$1.04

2,253,147

$0.94

3,243,407

$0.99

2,325,987

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

26 Oct 22

30 June 2022

Options

30 Nov 07

–

(91,036)

(1,065,114)

(580,682)

(349,739)

(255,970)

(904,344)

(509,468)

–

1,200,000

–

1,743,679

–

(298,805)

2,944,602

(214,286)

2,111,701

–

3,193,501

–

$0.87

–

3,193,501

11,069,426

3,193,501 (3,756,353)

(513,091) 9,993,483

1,743,679

12,269,426

3,193,501 (3,756,353)

(513,091) 11,193,483

2,943,679

N/A

$4.10

$1.12

1,200,000

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

16 Nov 21

21 Dec 30

21 Dec 31

5 Dec 32

21 Nov 33

21 Nov 34

19 Nov 35

16 Nov 36

–

$0.96

$0.80

$0.85

$1.33

$1.30

269,103

1,065,114

580,682

349,739

264,590

$0.94

2,097,201

$1.04

2,253,147

$0.94

3,243,407

$0.99

–

2,325,987

–

(178,067)

–

(8,620)

–

1,200,000

91,036

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

–

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

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 2023.

The dividend is to be paid on Monday, 16 October 2023, with a record date of Monday, 11 September 2023. 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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 91

Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

27. OTHER ACCOUNTING POLICIES

Financial assets at amortised cost (debt instruments)

A. FINANCIAL ASSETS

INITIAL RECOGNITION AND MEASUREMENT

Financial assets are classified, at initial recognition, as

subsequently measured at amortised cost, fair value

through other comprehensive income (OCI), and fair value

through profit or loss.

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

The Group’s business model for managing financial assets

repurchasing in the near term. Derivatives, including

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.

PEE T L IMIT ED | A NNUA L REPOR T 2 0 2 3 | 9 2

IMPAIRMENT

B. LEASES

The Group recognises an allowance for expected credit

For leases with a lease term greater than 12 months that

losses (ECLs) for all debt instruments not held at fair value

are not considered low value leases (see below), right-of-

through profit or loss. ECLs are based on the difference

use assets and associated lease liabilities are recognised at

between the contractual cash flows due in accordance with

the commencement of the lease.

the contract and all the cash flows that the Group expects

to receive, discounted at an approximation of the original

effective interest rate. The expected cash flows will include

cash flows from the sale of collateral held or other credit

enhancements that are integral to the contractual terms.

Right-of-use assets are measured at cost initially and then

depreciated over the shorter of the asset’s useful life and the

lease term on a straight-line basis. The cost of right-of-use

assets includes the amount of lease liabilities recognised,

initial direct costs incurred, and lease payments made at or

ECLs are recognised in two stages. For credit exposures for

before the commencement date less any lease incentives

which there has not been a significant increase in credit risk

received. Right-of-use assets are subject to impairment.

since initial recognition, ECLs are provided for credit losses

that result from default events that are possible within

the next 12-months (a 12-month ECL). For those credit

exposures for which there has been a significant increase

in credit risk since initial recognition, a loss allowance is

required for credit losses expected over the remaining life

of the exposure, irrespective of the timing of the default (a

lifetime ECL).

The lease liability is initially measured at net present

value of future

lease payments using the Group’s

incremental borrowing rate. The lease payments include

fixed payments less any lease incentives receivable and

variable lease payments that depend on an index or a rate.

The lease payments are allocated between repayment of

lease liability and interest expense (charged to profit or loss

over the lease period). In addition, the carrying amount of

For trade receivables and contract assets, the Group applies

lease liabilities is remeasured if there is a modification or a

a simplified approach in calculating ECLs. Therefore, the

change in the lease term.

For short-term leases and leases of low-value assets,

lease payments are recognised on a straight-line basis as

an expense in profit or loss. Short-term leases are leases

with a lease term of 12 month or less. Low-value assets

are generally small items of office equipment.

Group does not track changes in credit risk, but instead

recognises a loss allowance based on lifetime ECLs at

each reporting date. The Group has established a provision

matrix that is based on its historical credit loss experience,

adjusted for forward-looking factors specific to the debtors

and the economic environment.

The Group considers a financial asset in default when

internal or external information indicates that the Group

is unlikely to receive the outstanding contractual amounts

in full before taking into account any credit enhancements

held by the Group. A financial asset is written off when

there is no reasonable expectation of recovering the

contractual cash flows.

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Notes to the Consolidated Financial Statements
For the year ended 30 June 2023

27. OTHER ACCOUNTING POLICIES continued

E. TERMINATION BENEFITS

C. INTANGIBLE ASSETS

Intangible assets primarily consist of software and are

shown at historical costs less depreciation.

Depreciation on intangible assets is calculated using the

straight-line method over their estimated useful lives as

below.

• Software – 5 years

Where costs incurred to configure or customise Software-

Termination benefits are payable when employment is

terminated before the normal retirement date, or when an

employee accepts voluntary redundancy in exchange for

these benefits. The Group recognises termination benefits

when it is demonstrably committed to either terminating

the employment of current employees according to a

detailed formal plan without possibility of withdrawal or

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

as- a Service (SaaS) arrangements result in the creation of a

resource which is identifiable, and where the company has

present value.

the power to obtain the future economic benefits flowing

F. GOODS AND SERVICES TAX (GST)

from the underlying resource and to restrict the access

of others to those benefits, such costs are recognised as

a separate intangible software asset and amortised over

the useful life of the software on a straight-line basis.

The amortisation is reviewed at least at the end of each

reporting period and any changes are treated as changes in

accounting estimates. Where costs incurred to configure or

customise do not result in the recognition of an intangible

software asset, then those costs that provide the Group

with a distinct service (in addition to the SaaS access) are

now recognised as expenses when the supplier provides

the services.

D. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are shown at historical cost

Revenues, expenses and assets are recognised net of the

amount of associated GST, unless the GST incurred is not

recoverable from the taxation authority. In this case it is

recognised as part of the cost of acquisition of the asset or

as part of the expense.

Receivables and payables are stated inclusive of the

amount of GST receivable or payable. The net amount of

GST recoverable from, or payable to, the taxation authority

is included with other receivables or payables in the

balance sheet.

Cash flows are presented on a gross basis. The GST

components of cash flows arising from investing or

financing activities which are recoverable from, or payable

to the taxation authority, are presented as operating

less depreciation. Historical cost includes expenditure that

cash flows.

is directly attributable to the acquisition of the items.

Depreciation on property, plant and equipment is calculated

using the straight-line method to allocate their cost, net of

their residual values, over their estimated useful lives, as

follows:

• Fixtures and fittings – 3 to 10 years

G. GOVERNMENT GRANTS

Government grants are recognised where there

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

• Leasehold improvements – 10 years

are expensed.

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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H. PARENT ENTITY FINANCIAL INFORMATION

TAX CONSOLIDATION LEGISLATION

Peet Limited and its wholly-owned Australian controlled

entities have implemented the tax consolidation legislation

as of 1 July 2003. Peet Limited is the head entity of the

tax consolidated group. Members of the group are taxed

as a single entity and the deferred tax assets and liabilities

of the entities are set-off in the consolidated financial

statements.

I. NEW ACCOUNTING STANDARDS AND
INTERPRETATIONS ISSUED BUT NOT
YET EFFECTIVE

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.

AMENDMENTS TO IAS 1: CLASSIFICATION OF

The entities in the tax consolidated group entered into a

LIABILITIES AS CURRENT OR NON-CURRENT

In January 2020 and October 2022, the IASB issued

amendments to paragraphs 69 to 76 of IAS 1 to specify

the requirements for classifying liabilities as current or non-

current. The amendments are effective for annual reporting

periods 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 and this will assessed at

each balance date going forward.

tax sharing agreement which limits the joint and several

liability of the wholly-owned entities in the case of a default

by the head entity, Peet Limited. At the balance sheet date

the possibilities of default were remote.

Assets or liabilities arising under tax funding agreements

with the tax consolidated entities are recognised as

amounts receivable from or payable to other entities in the

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.

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Directors’ Declaration
Year ended 30 June 2023

In the Directors’ opinion:

a. the financial statements and notes set out on pages 59 to 95 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 2023 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

23 August 2023

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Independent Auditor’s Report

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Independent Auditor’s Report

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Independent Auditor’s Report

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Independent Auditor’s Report

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Securityholder Information

DISTRIBUTION OF ORDINARY SHARES

As at 29 August 2023 there were 2,131 current holders of ordinary shares and 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

Number of
Shareholders

% of Issued
Shares

561

582

317

592

2,131

0.03

0.37

0.52

3.75

95.33

100.00

There were 404 shareholdings of less than a marketable parcel of $500 (414 shares).

SHAREHOLDERS

The names of the 20 largest holders of ordinary shares as at 29 August 2023 are listed below.

Number of
Shares Held

% of
Shares Held

86,582,433

74,912,544

49,862,654

38,984,384

37,794,964

20,703,836

18,913,127

18,152,705

17,459,881

12,707,352

11,927,977

8,656,230

7,278,678

7,240,842

5,000,000

4,543,295

3,252,090

1,877,764

1,872,758

1,528,344

429,251,858

42,011,568

471,263,426

18.37

15.90

10.59

8.27

8.03

4.39

4.01

3.85

3.70

2.70

2.53

1.84

1.54

1.06

0.96

0.69

0.40

0.32

91.09

8.91

100.00

Name

Scorpio Nominees Pty Ltd

Citicorp Nominees Pty Limited

HSBC Custody Nominees (Australia) Limited

J P Morgan Nominees Australia Pty Limited

HSBC Custody Nominees (Australia) Limited – A/C 2

Hurose Pty Ltd

PM Nominees C Pty Ltd

Argo Investments Limited

Mr Warwick Donald Hemsley

Ian Murray Charles Palmer + Helen Christina Palmer

National Nominees Limited

Golden Years Holdings Pty Ltd

UBS Nominees Pty Ltd

Mr Brendan David Gore

Mirrabooka Investments Limited

BNP Paribas Noms Pty Ltd

Netwealth Investments Limited

BNP Paribas Nominees Pty Ltd

Neweconomy Com Au Nominees Pty Limited <900 Account>

Mr Julian Charles Peet

Total for 20 largest shareholders

Total other shareholders

Total ordinary shares on issue

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SUBSTANTIAL SHAREHOLDERS

As disclosed in substantial holding notices lodged with ASX (as applicable) as at 29 August 2023:

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

13 June 2023

39,277,916

7 June 2022

28,624,760

18 April 2023

24,159,122

20.50

18.36

8.33

5.95

5.12

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

Retail Employees Superannuation Pty Limited as trustee
for the Retail Employees Superannuation Trust

1. Percentage of issued shares held as at the date notice provided.

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.

SECURITIES EXCHANGE LISTINGS

Peet Limited’s ordinary shares are listed on the Australian Securities Exchange (“ASX”). The Company’s ASX code is PPC.

OPTIONS AND PERFORMANCE RIGHTS

As at 29 August 2023, Peet Limited had 1,200,000 options on issue, held by one key management person, as disclosed

elsewhere in the Annual Report.

As at 29 August 2023, Peet Limited had 9,721,107 performance rights on issue, held by a total of nine KMP and other

senior managers.

These options and performance rights, which are not listed, were issued under the PESOP and PPRP, respectively.

PEET BONDS

As at as at 29 August 2023, Peet Limited had 75,000 unsecured and unsubordinated, 6.75% fixed-rate bonds on issue,

with a maturity date of 7 June 2024 and 75,000 unsecured and unsubordinated floating rate bonds on issue, with a

maturity date of 30 September 2026. Bondholders are not entitled to vote at general meetings, however, are entitled

to vote on certain matters that affect their rights under the bonds’ Trust Deed. The bonds were issued to professional

and sophisticated investors and are not listed.

WEBSITE ADDRESS

www.peet.com.au

The Peet Limited website offers the following features:

• investor relations page with the latest Company announcements;

• news service providing up to date information on the Company’s activities and projects; and

• access to annual and half year reports.

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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, FAICD, FCPA, FCIS, FGIA, Managing Director and Chief Executive Officer

Anthony Lennon, BA, Grad Dip Bus Admin, Non-executive Director

Trevor Allen, BComm (Hons), CA, FF, FAICD, Non-executive Director

Vicki Krause, BJuris LLB W.Aust, GAICD, Non-executive Director (retiring on 25 October 2023)

Robert McKinnon, FCPA, FCIS, FGIA, MAICD, Non-executive Director (retiring on 25 October 2023)

Margaret Kennedy, BComm, GAICD, Non-executive Director

Michelle Tierney, B.Arts Journalism & Communication, Post Grad Dip. Bus Admin., MBA, GAICD, Non-executive Director

Greg Wall AM, MA, GAlCD FFlN, Non-executive 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 17, 221 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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Notes

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Notes

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Notes

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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

Perth | Melbourne | Brisbane | Canberra | Adelaide