Gpt Group · ASX:GPT
Gpt — The GPT Group — Q3 2013 Earnings Presentation
24 slides from Gpt's earnings presentation, September 2013
Slide 1: GPT 2013 September Quarter Result Update
GPT 2013 SEPTEMBER QUARTER <<<<<<<< RESULT UPDATE 11
Slide 2: September Quarter Highlights
SEPTEMBER QUARTER HIGHLIGHTS Delivering on core property principles Guidance upgraded Low gearing with Robust portfolio targeting at least $2.8 billion metrics maintained 6% EPS growth for 2013 capacity(1) GWOF and GWSCF the best GWSCF successfully raised performing funds in the $178 million, with $
Slide 3: Investment Management: Resilient portfolio maintains solid fundamentals
INVESTMENT MANAGEMENT Resilient portfolio maintains solid fundamentals PORTFOLIO SUMMARY As at 30 September 2013 Portfolio Size WALE Occupancy WACR Retail $4.4bn 4.3 years 99.6% 6.00% Office $2.8bn 5.4 years 95.4%(1) 6.78% Logistics & Business Parks $1.0bn 5.6 years 95.4% 8.27% Total $8.3bn 4.9 year
Slide 4: Retail: Occupancy levels remain steady
RETAIL Occupancy levels remain steady 30 Sep 2013(2) 30 Jun 2013 Comparable total centre sales growth(1) 0.3% 1.0% Comparable specialty sales growth(1) 0.8% 1.1% Specialty sales psm(1) $9,174 $8,984 Specialty occupancy costs(1) 18.2% 18.2% Occupancy rate 99.6% 99.5% Weighted average capitalisation r
Slide 5: Retail: The cautious consumer environment remains
RETAIL The cautious consumer environment remains 10% Comparable Change in Annual Retail Sales Growth by Category 8.1% 8% 6% 4.5% 4.0% 4% 3.5% 2% 0.8% 1.2% 0.8% 0.3% 0% -0.1% -2% -1.0% -1.0% -1.5% -4% -2.7% -6% -4.8% -8% -7.8% -7.9% -10% Mobile Phones Apparel Food Retail Mini & Other Majors Total Spe
Slide 6: Retail: Early indications of growth driver improvement
RETAIL Early indications of growth driver improvement Supportive monetary policy and weaker dollar Stable economic growth anticipated Cash Rate and Exchange Rate(1) IMF Australian Economic Growth Forecast(2) Annual Real GDP Growth Cash Rate (LHS) 8% $A/$US (RHS) 1.2 5% Forecast 7% 4% Exchange Rate 1
Slide 7: Office: Portfolio metrics remain solid
OFFICE Portfolio metrics remain solid 30 Sep 2013 30 Jun 2013 Occupancy (including terms agreed) 95.4% 95.2% Weighted average lease expiry 5.4 years 5.6 years Leases signed during the quarter 26,110 sqm 19,310 sqm Terms agreed at period end 16,790 sqm 27,560 sqm Weighted average capitalisation rate
Slide 8: Office: Solid work on retaining existing tenants
OFFICE Solid work on retaining existing tenants Solid activity year to date with 72,840 sqm of signed leases Renewals representing 78% of September quarter 2013 leasing activity LEASING TRANSACTIONS Asset Status Tenant Sqm Term 8 Exhibition Street Signed Lease UBS 4,950 sqm 12 years Brisbane Tra
Slide 9: Office: Demand showing signs of improvement
OFFICE Demand showing signs of improvement Leading indicators suggesting space markets passing the trough – NAB business confidence survey showing stages of improvement on a rolling twelve month basis – Prime grade net absorption for Eastern Seaboard CBD average starting to recover from a three ye
Slide 10: Logistics & Business Parks: Stable portfolio metrics
LOGISTICS & BUSINESS PARKS Stable portfolio metrics 30 Sep 2013 30 Jun 2013 Occupancy 95.4% 98.5% Weighted average lease expiry 5.6 years 5.4 years Leases signed during the quarter 37,580 sqm 36,750 sqm Weighted average capitalisation rate 8.27% 8.27% Logistics and Business Parks Lease Expiry (By Ar
Slide 11: Logistics & Business Parks: Demand driven by logistics companies
LOGISTICS & BUSINESS PARKS Demand driven by logistics companies Industrial Project Completions(1) Supply and demand forecast for CY13 3.0 Under Construction Total Gross Lettable Area likely to be near 10 year averages Completed 2.5 (milllon sqm) and at a similar level to 2012 2.0 1.5 1.35 Logist
Slide 12: Logistics & Business Parks: Two new acquisitions in logistics
LOGISTICS & BUSINESS PARKS Two new acquisitions in logistics Quarry Road, Yatala, QLD LBP Portfolio Growth Summary $44.5 million In Jan 2012 – $0.8 billion portfolio Prime logistics facility in SE QLD At Sep 2013 – $1.4 billion (including developments) Built in 2009 Have undertaken $307
Slide 13: Funds Management: Both funds continue to perform strongly
FUNDS MANAGEMENT Both Funds continue to perform strongly GWOF GWSCF 10.8% one year total return 11.3% one year total return Number 1 performing office fund over Ranked highest in the Mercer/IPD Unlisted one, three and five years Property Fund Index over one year 2nd overall fund in the Mer
Slide 14: Funds Management: Growth in FUM to $7.2 billion
FUNDS MANAGEMENT Growth in FUM to $7.2 billion KEY FUND METRICS GWOF GWSCF 30 Sep 13 30 Jun 13 30 Sep 13 30 Jun 13 GPT Ownership Interest (%) 20.2% 20.1% 20.4% 21.9% Number of assets 15 15 10 10 AUM (Funds under Management) $4,076m $4,021m $3,168m $3,070m Gearing 12.1% 12.4% 16.4% 25.3% One Year Tot
Slide 15: Capital Management: Maintaining a disciplined approach
CAPITAL MANAGEMENT Maintaining a disciplined approach GPT BALANCE SHEET 30 Sep 2013 30 Jun 2013 Total borrowings ($m) $2,141m $2,046m Gearing (%)(1) 21.2% 19.9% Weighted average cost of debt 5.05% 5.21% Weighted average term to maturity 6.0 years 6.6 years CREDIT METRICS 30 Sep 2013 30 Jun 2013 Stan
Slide 16: Capital Management: Long and diversified debt expiry profile
CAPITAL MANAGEMENT Long and diversified debt expiry profile $270 million purchased through buyback (year to date) $2.8 billion capacity(1) with diversified borrowings and long flat maturity profile Sources of debt Debt maturity profile 4% Facilities 11% A$ millions 425 405 5% 305 46% 250 216 196
Slide 17: Guidance: Upgraded guidance for 2013
GUIDANCE Upgraded guidance for 2013 Targeting EPS(1) growth of at least 6% for 2013 Payout ratio of 80% of ROI (1) EPS defined as Realised Operating Income (ROI) per ordinary security 17 19 17
Slide 18: Appendices
APPENDICES<<<<<<<< 1818
Slide 19: Capital Management: Hedging profile
CAPITAL MANAGEMENT Hedging profile 3,500 3,000 3.89% 4.06% 3.89% 3.92% 3.87% 3.77% 3.75% 3.74% 3.70% 3.72% 3.73% 3.72% 3.71% 2,500 2,000 $ millions 1,500 1,000 500 0 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Forecast Debt Interest rate swaps Fixed rat
Slide 20: Retail: Specialty monthly sales growth
RETAIL Specialty monthly sales growth 5% 4.2% 4% 3.6% 3% 2.6% 2.0% 2% 1.7% 1.3% 0.9% 1% 0.6% 0.6% 0% -0.3% -1% -1.3% -2% -1.5% -3% -2.9% -4% Nov 12 Jul 13 Jan 13 Apr 13 Jun 13 Sep 12 Oct 12 Sep 13 Dec 12 Feb 13 Mar 13 May 13 Aug 13 Note: Includes GPT and GWSCF assets and excludes development impacte
Slide 21: Retail: Retail portfolio sales performance
RETAIL Retail portfolio sales performance Moving Annual Turnover Occupancy Costs (%) Comparable Comparable Centre MAT Specialty Specialty Centre Name Owner Centre MAT Specialty MAT Centre (%) $PSM MAT $PSM (%) Growth (%) Growth (%) Carlingford Court GWSCF 6,747 0.5% 8,852 0.7% 8.6% 16.9% Casuarina S
Slide 22: Retail: Valuation summary
RETAIL Valuation summary As at 30 September 2013 As at 30 June 2013 Interest Valuer Valuation Cap Fair Value Cap Rate Rate GPT Portfolio Highpoint(1) 33.33% Savills $306.4m 5.50% $291.5m 5.75% GWSCF Portfolio Highpoint(1) 50% Savills $919.3m 5.50% $873.7m 5.75% Wollongong Central(2) 100% CBRE $407.2
Slide 23: Office: Valuation summary
OFFICE Valuation summary As at 30 September 2013 As at 30 June 2013 Interest Valuer Valuation Cap Fair Value Cap Rate Rate GWOF Portfolio 800/808 Bourke Street 100% JLL $385.0m 6.50% $372.5m 6.50% 28 Freshwater Place 50% M3 $117.5m 7.00% $115.0m 7.00% The Zenith 50% Colliers $121.0m 8.50% $117.1m 8.
Slide 24: 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