Gpt Group · ASX:GPT
Gpt — The GPT Group — H1 2016 Earnings Presentation
28 slides from Gpt's earnings presentation, Aug 15, 2016
Slide 1: 2016 Interim Result
1 For personal use only 2016 INTERIM RESULT 15 August 2016
Slide 2: Agenda
Agenda 2 For personal use only Section Speaker Page 2016 Interim Result Highlights Bob Johnston 3 Financial Summary & Capital Management Anastasia Clarke 5 Retail Vanessa Orth 9 Office & Logistics Matthew Faddy 14 Funds Management Nicholas Harris 23 Summary & Outlook Bob Johnston 26
Slide 3: 2016 Interim Result Highlights
2016 Interim Result Highlights 3 For personal use only Delivering results from core business Investment Portfolio Performance 6.1% FFO1 per security 14.3% Total Return 3.8% Portfolio like for like $ 380m Portfolio valuation growth income growth uplift Distribution Capital Management Portfolio leasin
Slide 4: Progress on Group Strategy
Progress on Group Strategy 4 For personal use only Retail, Office & Logistics portfolios all delivering strong returns Investment • • Full year Group Total Return expected to be greater than 11.5% Portfolio • 86% of the investment portfolio is in the Sydney and Melbourne markets • GWOF terms renewed
Slide 5: Financial Summary
Financial Summary 5 For personal use only 6 months to 30 June ($ million) 2016 2015 Change Net Profit After Tax 586.4 421.9 39.0% Deduct: Valuation increases 379.9 146.0 Deduct: Distribution on exchangeable securities - 1.7 Add back: Treasury items marked to market 65.7 (7.3) Deduct: Other items 2.4
Slide 6: Segment Result
Segment Result 6 For personal use only 6 months to 30 June ($m) 2016 2015 Retail 148.6 149.7 Comparable income growth of 3% offset by asset sales including Dandenong Office 107.1 107.3 Comparable income growth of 6% offset by lower GWOF income due to 1H performance fee and Fund accrual for a final p
Slide 7: GWOF Performance Fee
GWOF Performance Fee 7 For personal use only • GPT earned a performance fee from GWOF in 1H16 • GWOF terms renewal included a final performance fee to GPT for accrued outperformance − GWOF has accrued for the final performance fee expense − Payable to GPT in 2H16 and does not form part of GPT’s 1H16
Slide 8: Capital Management
Capital Management 8 For personal use only • Upgrade of GPT’s long term rating with Standard and Poor’s to A • Reduced weighted average cost of debt by 30 basis points to 4.3% • Further diversified the Group’s funding sources and increased the weighted average debt term to 5.9 years • Net gearing de
Slide 9: Retail | Highlights
Retail | Highlights 9 For personal use only Key Portfolio Statistics Retail Financial Highlights 2016 2015 Change 3.0% 43.2m Property Net Income 120.9 127.8 (5.4%) $ Income from GWSCF 17.8 18.2 (2.2%) Portfolio like for like Valuation uplift income growth Portfolio commentary and market conditions 4
Slide 10: Retail | Specialty Sales
Retail | Specialty Sales 10 For personal use only Portfolio Insights Moving Annual Change in Retail Sales by Category1 • Specialty sales growth has 16.4% moderated to 4.2% in June from 6.5% in Dec 15 Specialty breakdown • Improved performance in 10.7% 9.8% Department Stores and Mini Majors 6.2% • Ge
Slide 11: Retail | Leasing
Retail | Leasing 11 For personal use only Leasing Highlights • Strong specialty sales growth and productivity is translating into an improvement in leasing spreads and low levels of vacancy • Actively shifting the retail mix into growth categories such as food catering and down weighting in certain
Slide 12: Retail | Development
Retail | Development 12 For personal use only Casuarina Square Charlestown Square Entertainment & Lifestyle precinct – $34m International Mini-Major remix – $44m • Creation of a new entertainment & lifestyle precinct, • Re-vitalised an existing precinct to strengthen asset “The Quarter”, to enhance
Slide 13: Retail | Sunshine Plaza Development
Retail | Sunshine Plaza Development 13 For personal use only • Dominant asset in a growth market • High productivity of $11,800 per sqm • Trade area will continue to benefit from population growth, new infrastructure and tourism • $400m expansion includes 105 new specialties, David Jones, Big W, Int
Slide 14: Office | Highlights
Office | Highlights 14 For personal use only Key Portfolio Statistics Office Financial Highlights 2016 2015 Change 6.0% 287.3m Property Net Income 83.2 76.6 8.6% $ Income from GWOF 25.1 31.1 (19.3%) Portfolio like for like Valuation uplift income growth Portfolio commentary and market conditions • P
Slide 15: Office | Valuations
Office | Valuations 15 For personal use only • All assets independently valued at 30 June 2016 • Valuation gains a function of income growth and cap rate firming Valuation Uplift Weighted Average Valuation Uplift 1H16 Sydney Melbourne Brisbane Property $m % +10.8% +4.2% +0.3% Australia Square $50.9
Slide 16: Office | Leasing
Office | Leasing 16 For personal use only • Significant leasing achieved over the last four years, increasing occupancy to 97.3% • Leasing results driven by the technology sector and continued demand from the smaller tenant market • 41,100 sqm of signed leases and 43,000 sqm of deals at heads of agr
Slide 17: Office | Sydney Leasing Activity
Office | Sydney Leasing Activity 17 For personal use only • Sydney market represents 57% of GPT’s portfolio weighting • Strong leasing results achieved in 1H 2016 − 25,500 sqm of signed leases and an additional 28,100 sqm of heads of agreement • Portfolio of ten assets well positioned in the market
Slide 18: Office | Lease Expiry
Office | Lease Expiry 18 For personal use only • Low expiry profile with opportunities to capture stronger market conditions • Portfolio weighted 89% to the strong markets of Sydney and Melbourne Lease Expiry by Income 17.2% 17.5% Expiry as at Dec-15 Expiry as at Jun-16 9.9% 10.0% 8.3% 8.0% 8.3% 7.9
Slide 19: Office | Asset Enhancement & Development
Office | Asset Enhancement & Development 19 For personal use only Asset Upgrades Darling Park – Development Opportunity • 580 George $25m lobby and retail upgrade. • 50% owned by GWOF Advancing stage 2 retail podium scheme • Development application anticipated to be lodged • Planning continues on ML
Slide 20: Logistics | Highlights
Logistics | Highlights 20 For personal use only Key Portfolio Statistics Logistics Financial Highlights 2016 2015 Change 0.1% 42.3m Property NOI 46.0 44.3 3.8% $ Income from GMF 1.4 1.4 - Portfolio like for like Valuation uplift Portfolio commentary and market conditions income growth • Portfolio ha
Slide 21: Logistics | Lease Expiry
Logistics | Lease Expiry 21 For personal use only • Active lease negotiations progressing for current vacancy and key 2017 expiries • Following the sale of Kings Park in July 2016 the 2017 expiry has reduced to 12.9% Lease Expiry Profile by Income Expiry as at Dec-15 18.2% Expiry as at Jun-16 12.9%
Slide 22: Logistics | Development & Land Bank
Logistics | Development & Land Bank 22 For personal use only Development • Commenced two speculative developments (44,600sqm GLA) at Abbott Rd, Seven Hills and Eastern Creek Drive, Eastern Creek • Secured three transactions at Metroplex, Wacol Land bank providing potential for approximately $450m of
Slide 23: Funds Management | Highlights
Funds Management | Highlights 23 For personal use only • Funds Management division has GPT Total Return for 12 months ended 30 June 2016 generated a Total Return of 17.6% 4.0% 17.6% • GPT Metro Office Fund (GMF) 8.0% − Takeover offer from Growthpoint recommended by the GMF Board 5.6% − Offer price d
Slide 24: Funds Management | GWSCF & GWOF
Funds Management | GWSCF & GWOF 24 For personal use only GPT Wholesale Shopping Centre Fund (GWSCF) • $240 million expansion of Macarthur Square progressing well • Introducing H&M and new format David Jones to Wollongong Central • Highpoint Shopping Centre continues to perform strongly, with expansi
Slide 25: Funds Management | GWOF Fund Terms
Funds Management | GWOF Fund Terms 25 For personal use only Item New terms • 50 bps up to $6 billion GAV (from 45 bps) Base management fee • 45 bps thereafter • Effective 1 July 2016 • Removal of performance fee structure Performance fee structure • Effective 1 July 2016 • Payment of a final perform
Slide 26: Summary & Outlook
Summary & Outlook 26 For personal use only • Economic conditions in NSW and Victoria continue to be favourable for Retail, Office and Logistics sectors • Good progress being made on development led investment opportunities • Balance sheet is in a very strong position • GWOF terms and liquidity revie
Slide 27: 2016 Interim Result
27 For personal use only 2016 INTERIM RESULT 15 August 2016
Slide 28: Disclaimer
Disclaimer 28 For personal use only 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