Fleetwood (FWD) investor relations material

Deal rationale and strategic fit

• Acquisition of Red Dog Village expands presence in Karratha, a key resource region with high demand for transient worker accommodation, and adds 2,169 modern rooms.

• Combined with Searipple Village, creates the leading integrated accommodation platform in Karratha, supporting major concurrent projects and addressing a forecasted shortfall of 1,500 beds over the next three to five years.

• Strengthens a vertically integrated model, supporting both immediate and long-term workforce and residential needs through modular manufacturing and adaptable facilities.

• Enables support for transition from construction-phase to longer-term residential solutions in partnership with local stakeholders.

• Supports major resource and infrastructure projects in a supply-constrained market.

Financial terms and conditions

• Acquisition price is AUD 20 million (plus GST), significantly below replacement value, funded through a term debt facility.

• Settlement expected in December 2026, with operational management commencing January 2027.

• Expected to increase annualised EBIT by AUD 10–20 million, depending on occupancy and market conditions.

• Maintains disciplined balance sheet flexibility.

Synergies and expected cost savings

• Combined portfolio enables more effective yield management, occupancy optimisation, and stable earnings through project cycles.

• Modular construction capability allows rapid expansion, asset renewal, and upgrades to meet evolving workforce needs.

• Smithfield closure delivers AUD 8–9 million in annualised savings from Q2 FY 2027.

• Redevelopment potential to modernise, expand, or repurpose assets.