Gpt Group · ASX:GPT
Gpt — H1 2019 Earnings Presentation
27 slides from Gpt's earnings presentation, Aug 12, 2019
Slide 1: 2019 Interim Result Market Briefing
2019 Interim Result Market Briefing 12 August 2019
Slide 2: Agenda
Agenda 3 2019 Interim Result Highlights | Bob Johnston 6 Financial Summary & Capital Management | Anastasia Clarke 10 Office & Logistics | Matthew Faddy 19 Retail | Chris Barnett 24 Funds Management | Nicholas Harris 26 Summary & Outlook | Bob Johnston Interim Result 2019
Slide 3: Our Strategic Focus
+ Growing our Office & Logistics Delivering attractive Our Strategic portfolio returns Focus + Retaining high weighting to NSW and VIC markets 5yr avg. NTAps + Increased the development growth 8.2% pipeline to an expected end value 5yr avg. FFOps of over $1.6 billion growth 4.3% + Total Assets Under
Slide 4: Executing on growth strategy
Executing on growth strategy Office and Retail Darling Park Acquisition & Developments Development Opportunity Expected end value of $800 million Expected end value, including Cockle Bay Park development, of >$1 billion1 Current + Darling Park 1&2 and Cockle Bay Wharf + 32 Smith Street, Parramatta,
Slide 5: Financial Highlights
2019 Consistently delivering strong returns Interim Result FINANCIAL 2.0% FFO GROWTH 4.0% DISTRIBUTION $ 5.66 9.6% NTA PER TOTAL HIGHLIGHTS PER SECURITY GROWTH PER SECURITY RETURN SECURITY UP 1.4 PER CENT Investment Portfolio Portfolio Revaluation $131M occupancy1 95.7% gains Like for like Weighted
Slide 6: Finance & Treasury
Finance & Treasury Interim Result 2019 Artists impression – 550 Bourke Street and 181 Williams Street, Melbourne
Slide 7: Financial Summary
Financial Summary 6 Months to 30 June ($ million) 2019 2018 Change Funds From Operations (FFO) 295.9 289.4 2.2% Valuation increases 130.8 456.7 $ 352.6M STATUTORY NET PROFIT Treasury instruments marked to market (82.3) (8.9) AFTER TAX Other items 8.2 (8.7) (51.6%) Net Profit After Tax (NPAT) Funds F
Slide 8: Segment Result
Segment Result 6 Months to 30 June ($ million) 2019 2018 Change Comments Operations net income up 0.8% due to fixed rent increases offset by lower Retail 157.3 157.8 ▼(0.3%) turnover rent, downtime and a lower development contribution. Strong comparable income growth of 6.5% driven by leasing succes
Slide 9: Capital Management
Capital Management Domestic bank debt 2% CPI Bonds Foreign bank debt + Conservative gearing policy of 25-35% with 2% 5% Secured bank debt preference to be below 30% 3% + Successfully completed $867 million equity raising to Sources of Commecial Paper fund acquisition and growth opportunities 9% Draw
Slide 10: Office & Logistics
Office & Logistics Interim Result 2019
Slide 11: Office Highlights
Office Highlights Portfolio Size & Geographic Exposure1 6.5% PORTFOLIO 10.9% TOTAL PORTFOLIO $114.8M VALUATION LIKE FOR LIKE RETURN UPLIFT Office Retail $6.3bn INCOME GROWTH (12 MONTHS) $5.9bn Sydney 59% Melbourne 31% Key Brisbane 10% Highlights + Office valuation gains driven by Melbourne and Sydne
Slide 12: Office Valuations & Market Fundamentals
Office Valuations & Market Fundamentals + Market rental growth has driven over 70% of valuation uplift Office Portfolio + Gains led by Melbourne Central Tower, 181 William/550 Bourke Streets and Australia Square + Sydney and Melbourne experiencing low vacancy, with the Brisbane market improving, sup
Slide 13: Office Leasing
Office Leasing + Renewals secured with Nine, William Buck, 97.1% 5.0year 116,800sqm PORTFOLIO WALE BY TOTAL LEASING VOLUME Sunsuper, Morgans Financial + New Leases and expansions agreed with Momentum Energy, Heinz, Adobe and Amazon Including 78,900sqm of terms agreed Web Services OCCUPANCY1 INCOME1
Slide 14: Darling Park 1 & 2 and Cockle Bay Wharf Acquisition
+ Acquisition of a 25% interest in Darling Park 1 Darling Park & 2 and Cockle Bay Wharf has been Acquisition completed + Two premium grade assets in central Sydney together with the attractive Cockle Bay Park development opportunity + In close proximity to transport hubs and bordering Darling Harbou
Slide 15: Office Development Pipeline
Office Development Pipeline 300 Lonsdale Street, Melbourne Central + Seeking pre-commit for 20,000sqm complex above retail centre to be delivered in 2022 + Further enhance Melbourne Central as a dominant mixed use precinct. Office building connects with proposed rooftop entertainment and dining prec
Slide 16: Logistics Highlights
Logistics Highlights Portfolio Size & Geographic Exposure1 2.2% PORTFOLIO 16.9% 121,300SQM TOTAL PORTFOLIO LEASES Office $5.9bn Retail LIKE FOR LIKE RETURN SIGNED $6.3bn INCOME GROWTH (12 MONTHS) Sydney 69% Melbourne 22% Key Outcomes Brisbane 9% + Acquisition of five investment assets in Western Syd
Slide 17: Logistics Portfolio Performance
Logistics Portfolio Performance $51.4M >70% 34 VALUATION UPLIFT TENANTS ASX LISTED ASSETS / GLOBAL ENTITIES 148,300SQM TOTAL LEASING VOLUME 50 Old Wallgrove Road, Eastern Creek Including 27,000sqm of terms agreed sqm Eastern 1,400,000 Gross Take-Up Take-Up 10y Avg. Vacancy Seaboard 1,200,000 + Easte
Slide 18: Logistics Portfolio Growth
Brisbane, QLD Logistics Portfolio Growth Underway $75m | Active Pipeline $75m Berrinba + $282 million of acquisitions and + Pre-commitment with international logistics company across 20,500sqm, due for completion 1H 2020 development completions across six assets in Western Sydney, + Speculative deve
Slide 19: Retail
Retail Interim Result 2019 Sunshine Plaza, Queensland
Slide 20: Retail Highlights
Retail Highlights Portfolio Size & Geographic Exposure 1.4% PORTFOLIO 99.5% PORTFOLIO $ 11,512 SPECIALTY SALES Office LIKE FOR LIKE OCCUPANCY PRODUCTIVITY $5.9bn Retail INCOME GROWTH PER SQUARE METRE NSW 41% $6.3bn VIC 44% Key Outcomes QLD 10% NT 5% + Retail segment FFO contribution of $157.3 millio
Slide 21: Retail Sales
Retail Sales Portfolio MAT Growth by Category 0.7% TOTAL SPECIALTY MAT GROWTH 9.0% 5.7% 4.9% 4.5% 2.7% 3.4% 2.5% 1.9% 1.0% 0.7% SPECIALTY SALES PRODUCTIVITY (<400sqm) -0.7% -4.3% -4.4% -5.4% -5.7% $11,512 1.0% -10.9% Specialty Sales Specialty Sales Homewares Health & Beauty Dining Retail Services De
Slide 22: Retail Leasing
Retail Leasing Strong portfolio Quality portfolio Unique retailer Growing network of existing retailers occupancy with new retailer offers responding demand to customer trends 247 LEASING DEALS 58 NEW RETAILERS New F&B precincts at both Melbourne Central and Charlestown which are due for completion
Slide 23: Retail Development
Retail Development Melbourne Central Continued progression on the proposed $70 million rooftop retail expansion including approximately 7,000sqm of retail over two levels + Expansion of leisure and entertainment precinct including dining, education, wellness and retail markets + Pre-leasing well pro
Slide 24: Funds Management
Funds Management Interim Result 2019 Darling Park, Sydney
Slide 25: Funds Management Highlights
Funds Management Highlights Funds Management Financial Summary ($M) $ 13.3B ASSETS UNDER 8.2% TOTAL 7.6% FFO Segment 1H 2019 1H 2018 CHANGE MANAGEMENT RETURN GROWTH Result (7.2% annual increase) 22.7 21.1 7.6% Key Outcomes + GWOF exercised pre-emptive right to acquire a 50% interest in 2 Southbank B
Slide 26: Summary & Outlook
Summary & Outlook Market Outlook Group Outlook + House price stabilisation, coupled with lower interest + The Office portfolio continues to benefit from high rates and tax cuts, should provide support for improved occupancy and fixed rental increases economic conditions and consumer sentiment + The
Slide 27: Disclaimer
Disclaimer The information provided in this presentation has been prepared by The GPT Group comprising GPT RE Limited (ACN 107 426 504) AFSL (286511), as responsible entity of the General Property Trust, and GPT Management Holdings Limited (ACN 113 510 188). The information provided in this presenta