Wotso Property : WOT Half Yearly Report and Accounts

r personal use only

P r o p e r t y b y n a m e , f l e x i b l e b y n a t u r e

I N T E R I M

R E P O R T

H A L F - Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 1

CONTENTS

3 Directors' Report

only	8	Balance Sheet
	9	Statement of Profit or Loss and
	Other Comprehensive Income
	10	Statement of Cash Flows
use	11	Statement of Changes in Equity
12	Notes to the Financial Statements
	21	Directors' Report - Continued
personal	21	Directors' Declaration
22	Auditors Independence
	Declaration and Audit Report
	Annexures:
	25	WOTSO Financial Statements
	36	Planloc Financial Statements
2 WOTSO Property - December 2021
r

Adelaide, SA

Operates flexible workspaces, largely targeted towards small to medium enterprises in city fringe, suburban and regional locations. It has grown to 20 locations across Australia with revenue largely derived from the use of private offices on monthly terms and memberships for the use of open-plan co-workingspaces, events spaces and meeting rooms.

The property owning entities of the group that make up the segment we call "BlackWall Property". A portfolio of

15 commercial properties across 5 Australian states and the ACT with 12 including accommodation for WOTSO.

Directors' Report

WOTSO Property (WOT or the Group) will pay a distribution of 3.0 cents per security on 8 April 2022. In the last 6 months WOT has acquired a further 2 properties bringing total acquisitions to 5 properties in the last 12 months. WOT owns 15 properties

onlyencompassing just over 80,000 sqm of NLA and operates around 40,000 sqm of flexible space.

useSo what is WOTSO Property? personalr

Key Numbers

$1.50	3.0 cents
Adjusted Net Asset
Value (NAV) per	Interim Distribution
Stapled Security
5 new		26%
properties purchased
since start of		Net Gearing
pandemic

WOTSO Property - December 2021 3

	Our Portfolio				Yandina
only						Sunshine Coast
					Fortitude Valley
							Chermside
							Gold Coast
use						Newcastle
					Pyrmont
		Mandurah					Brookvale
							Cremorne*
							Villawood
							Penrith
							Zetland
personal						Bondi Junction
					North Strathfield
					Neutral Bay
							Manly
	Properties	Dec 2021	Jun 2021	Jun 2020		Penrith Town Centre
	Property Valuation	$347,090,000	$335,100,000	$298,100,000	Adelaide
	Number of Properties	15	14	11
	Area^	80,106m2	87,383m2	78,285m2		Dickson
	Occupancy	95%	82%	80%
	WOTSO					Symonston
					Woden
	Sites	19 (excl. Cremorne)	18	17
	Desks	6,223	6,178	5,236
	Occupied Desks	4,019	4,209	3,096
	Occupancy	65%	68%	59%		*  Cremorne property purchase due for
	Annualised Turnover	$20,000,000	$21,000,000	$8,950,000
	(Dec 2021/Jun 2021)		settlement in March 2022.
							^The decrease in area is driven by the sale
		BlackWall Properties with WOTSOs			Hobart	of Toowoomba (appr. 10,500 sqm), partially
		BlackWall Properties without WOTSOs				offset by the addition of Cremorne and
					Mandurah (appr. 3,000 sqm) and some minor
		WOTSO sites at 3rd party properties
					movements in NLA across other properties.
4	WOTSO Property - December 2021
r

Property Investment Review

Our property portfolio continues to grow with a further two acquisitions committed in the first half of the year, bringing our total acquisitions to five over the last 12 months. Our five new properties have added over 6,000 sqm of Net Lettable Area (NLA) to our portfolio with the majority to be occupied by WOTSO's flexible space offering. We also sold our Toowoomba asset in September, it was a small legacy property that had few growth prospects.

onlyAll of the five acquisitions fit our strategy of growth in suburban and regional ocations with a focus of WOTSO becoming a key tenant to drive enhanced returns to our investors. We detailed our Brookvale and Newcastle purchases in our 2021 Annual Report and both of these sites are now ready and housing WOTSO members. Newcastle officially opened in December and has around 50 members. Brookvale has only just opened its doors so we will hopefully see its growth over the next few months.

Our 2 new properties are:

use22 Ormsby Terrace, Mandurah, WA

Mandurah is Western Australia's largest regional city and less than an hour from Perth. It is WOT's first asset in WA and will soon house WA's first WOTSO. The property was once home to the Australian Sailing Museum and represents over 1,500 sqm of NLA, which is currently vacant. The $2 million purchase price we think represents good value in the current Australian market. Mandurah is home to an

existing coworkspace that is run in partnership by local government and economic personaldevelopment groups. This space was looking for partners to help it continue its operations and WOTSO will allow this to occur through housing its existing tenants

s the foundation members for WOTSO Mandurah. WOTSO will open in the final quarter of FY22 and upon maturity we expect it to yield above 20% on the $2 million purchase price.

233-237 Military Rd, Cremorne, Sydney, NSW

In December WOT exchanged contracts on this property on Sydney's lower North Shore with settlement due in March 2022. It is 500 metres from our WOTSO Neutral Bay property that is currently subject to a lease and not owned by the Group. It is a high visibility site with approximately 1,400 sqm of NLA. You can expect some trademark WOTSO signage to front one of Sydney's busiest roads. The building previously housed a 2nds World retail outlet and offices for many years.

r

	Mandurah		Cremorne
Property		WOT	Independent	Dec 2021	Jun 2021
Investment Portfolio	Ownership	Yield*	Valuer Yield	$'000	$'000
Dickson, ACT	100%	4.1%	6.6%	31,450	31,300
Symonston, ACT	100%	5.9%	7.3%	8,600	8,400
Pyrmont, NSW	46%	4.4%	5.4%	148,000	150,100
Villawood, NSW	99%	8.1%	6.5%	22,000	22,000
Penrith, NSW	100%	6.8%	6.7%	21,500	21,500
Newcastle, NSW^	100%	1.3%	n/a	7,000	6,000
Brookvale, NSW^	100%	n/a	n/a	4,300	4,200
Sunshine Coast, QLD	100%	7.6%	7.4%	24,200	24,200
Yandina, QLD	100%	13.1%	8.6%	23,000	20,200
Gold Coast, QLD	100%	10.5%	7.4%	20,100	19,800
Fortitude Valley, QLD	100%	2.8%	6.7%	9,500	8,600
Adelaide, SA	100%	5.6%	7.5%	7,450	7,100
Hobart, TAS	100%	9.6%	7.7%	8,200	8,200
Mandurah, WA^	100%	n/a	n/a	2,100	-
Toowoomba, QLD†	-	n/a	-	-	3,500
Total Property Investment Portfolio (Owned)		337,400	335,100
Cremorne, NSW	100%	n/a	n/a	9,690	-
(to be settled in 2022)‡
Total Property Investment Portfolio			347,090	335,100
*WOT Yield is the current return of each property to WOT investors. It is comprised of the property's
passing yield plus WOTSO EBITDA for that property (if applicable).
^Newcastle, Brookvale and Mandurah were purchased in the 2021 calendar year and have not been
independently valued.
† Toowoomba was sold for $3.5 million during the period ended 31 Dec 2021.
‡Contracts have been exchanged on the purchase of Cremorne and settlement will occur in Mar 2022.
BlackWall Properties with WOTSOs
BlackWall Properties without WOTSOs
The value of properties is based on the most recent independent valuation, adjusted to include any
capital expenditure since valuation. These adjustments don't assume any value margin but simply add
the amount of capital spent. All properties were independently valued in November 2020, except for
recent acquisitions: Newcastle, Brookvale, Mandurah and Cremorne. Additionally, Pyrmont and Yandina
were independently valued at 31 December 2021.						5
			WOTSO Property - December 2021