GARDA Property Group · ASX:GDF
GARDA Property — H1 FY23 Earnings Presentation
29 slides from GARDA Property's earnings presentation, Feb 7, 2023
Slide 1: GARDA Property Group Interim Results Presentation December 2022
For personal use only GARDA PROPERTY GROUP (ASX: GDF) Interim Results Presentation | December 2022
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation (Presentation) has been prepared on behalf of GARDA Property Group (GDF or Group or GARDA), comprising GARDA Holdings Limited (GHL) and its controlled entities and GARDA Capital Limited (ACN 095 039 366) (AFSL 246714) (GCL) as responsible entity of
Slide 3: Group Overview
GROUP OVERVIEW For personal use only Real Estate Platform Financial Position $622.9 Million1 $2.01 PORTFOLIO VALUE NTA PER SECURITY 5.3 Years 34.6% WALE GEARING 91.2% 7.2 CPS PORTFOLIO OCCUPANCY FY23 DPS GUIDANCE ~160,000m² | 25,000m² 5.0%2 DEVELOPMENT PIPELINE IN CONSTRUCTION FORECAST FY23 DISTRIBU
Slide 4: Highlights
HIGHLIGHTS MANAGING BALANCE SHEET AND DELIVERING REVENUE GROWTH For personal use only Brisbane Industrial Rent Growth ✓ • Continued tenant demand exceeding available supply in land constrained markets has resulted in strong rental growth and reduction in incentives. • Continued rental growth is expe
Slide 5: Security Price Performance
SECURITY PRICE PERFORMANCE GDF SECURITY PRICE PERFORMANCE VERSUS ASX300 A-REIT INDEX For personal use only PERFORMANCE IN LINE WITH THE ASX300 A-REIT INDEX FOLLOWING A BROADER SELL-OFF OF A-REITS 105% 100% 95% 90% 85% 80% 75% 70% 65% 31 Dec 21 31 Jan 22 28 Feb 22 31 Mar 22 30 Apr 22 31 May 22 30 Jun
Slide 6: Asset Recycling Program
ASSET RECYCLING PROGRAM CONTINUES TO BE THE PREFERRED FORM OF CAPITAL MANAGEMENT FOR THE DEVELOPMENT PIPELINE For personal use only 69-79 Diesel Drive, Mackay ▪ GARDA acquired Mackay in 2016 for $29.5 million. Settled 8 December 2022 ▪ Sale occurred on 8 December 2022 for $35.5 million, representing
Slide 7: Portfolio Leasing
PORTFOLIO LEASING STRONG OUTCOMES IN CAIRNS AND MELBOURNE CITY FRINGE For personal use only 2,729m² 95.2% OFFICE LEASING CAIRNS OCCUPANCY Portfolio Leasing ▪ Limited portfolio leasing has occurred following an active first half of CY22 where 29,613m² of established NLA was leased and 24,410m² of ind
Slide 8: Lease Expiry Profile
LEASE EXPIRY PROFILE IMMATERIAL ‘AT RISK’ INCOME UNTIL FY25, UNDERPINNING PORTFOLIO REVENUE For personal use only ‘At Risk’ Income ▪ Limited income is at risk in FY23 and FY24, with only 3% of gross income, represented by eight small leases in Cairns across 1,352m², due to expire. ▪ FY25 expiry incl
Slide 9: Valuation Cycle
VALUATION CYCLE For personal use only MAJORITY OF THE PORTFOLIO WILL BE INDEPENDENTLY VALUED FOR 1 APRIL 2023 ▪ Independent valuations were received for three office assets located at Box Hill, Cairns and Hawthorn East. ▪ Box Hill, a 5,702m² single tenant property with an 8.4-year WALE was valued at
Slide 10: Valuation Overview
VALUATION OVERVIEW INDEPENDENT VALUATIONS For personal use only 4.27% 5.63% INDUSTRIAL CAP RATE OFFICE CAP RATE Dec 2022 Valuation Valuation Cap Rate Occupancy WALE Property Sector Carrying Date ($m) (%) % (years) Value ($m) Acacia Ridge, 69 Peterkin St Industrial Apr 2022 23.0 23.0 4.00% 100% 6.1 B
Slide 11: Industrial Development
For personal use only INDUSTRIAL DEVELOPMENT
Slide 12: 'Build to Own' Industrial Development Pipeline
‘BUILD TO OWN’ INDUSTRIAL DEVELOPMENT PIPELINE For personal use only DEVELOPMENT PIPELINE OF ~160,000M² OF HIGH QUALITY BRISBANE INDUSTRIAL ASSETS Morningside ▪ Asset extension 5,700 Acacia Ridge Stage 1B ▪ Asset extension 4,575 North Lakes ▪ DA approved – earth works to commence by May 2023. Strong
Slide 13: Industrial Development Pipeline
INDUSTRIAL DEVELOPMENT PIPELINE PROJECT CAPITAL REQUIREMENTS STAGED OVER THE COMING 18 MONTHS For personal use only Immediate development FY23 FY24 Bulk and civil works prior to development of built form Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Pinnacle West, Wacol ▪ Construction of two separate 8,050m² a
Slide 14: Progress Road (Pinnacle West), Wacol, Queensland
498 PROGRESS ROAD (PINNACLE WEST) WACOL, QUEENSLAND For personal use only ASSET SUMMARY PROJECT STATUS Land Area (m²) 41,750 ▪ Construction of Building B (8,050m²) is well advanced with practical completion Building C Lettable Area (m²) 6,000 expected late-March and leases commencing by April 2023.
Slide 15: 56-72 Bandara Street, Richlands, Queensland
56-72 BANDARA STREET RICHLANDS, QUEENSLAND For personal use only ASSET SUMMARY PROJECT STATUS Land Area (m²) 30,351 ▪ Construction of the DA approved industrial facility (13,000m²) is expected to Lettable Area (m²) 13,000 commence in February 2023 with a practical completion date of December 2023, a
Slide 16: 38-56 Peterkin Street (Stage 2), Acacia Ridge
38-56 PETERKIN STREET (STAGE 2) ACACIA RIDGE, QUEENSLAND For personal use only ASSET SUMMARY PROJECT STATUS Land Area (m²) 34,270 ▪ Demolition of the aged improvements at 38 and 56 Peterkin Street is complete. Lettable Area (m²) 15,000 ▪ Minor contamination was identified following the removal of fu
Slide 17: 109-135 Boundary Road (Pinnacle North), North Lakes
109-135 BOUNDARY ROAD (PINNACLE NORTH) NORTH LAKES, QUEENSLAND For personal use only ASSET SUMMARY Gross Land Area (m²) 323,800 Total Useable Land (m²) Lettable Area (m²) 250,951 ~ 97,000 DA APPROVED ‘AS IS’ VALUATION SUMMARY Valuation Date 1 May 2022 Capitalisation Rate / Discount Rate N/A / N/A (L
Slide 18: 372-402 Progress Road (Pinnacle East), Wacol
372-402 PROGRESS ROAD (PINNACLE EAST) WACOL, QUEENSLAND For personal use only ASSET SUMMARY NLA: 13,745m2 Gross Land Area (m²) 41,350 Lettable Area (m²) ~ 13,745 Occupancy (by income) ‘on completion’ N/A WALE (by income) ‘on completion’ N/A ‘AS IS’ VALUATION SUMMARY Valuation Date 1 May 2022 Capital
Slide 19: Property Portfolio
For personal use only PROPERTY PORTFOLIO Botanicca 9, Richmond
Slide 20: Portfolio Overview
PORTFOLIO OVERVIEW RECYCLING AND DEVELOPMENT SHIFTING PORTFOLIO WEIGHTING TO BRISBANE INDUSTRIAL For personal use only Sector (by Value) Top 10 Tenants Sector (by Value) Office Industrial Land / Industrial Development Office Industrial Land / Industrial Development Tenant Property Gross Income (%) P
Slide 21: Property Portfolio
PROPERTY PORTFOLIO INTEGRATED, COMMERCIAL AND INDUSTRIAL PROPERTY PLATFORM For personal use only 21
Slide 22: Finance
For personal use only FINANCE 41 Bivouac Pl, Wacol
Slide 23: Capital Management
CAPITAL MANAGEMENT ASSET RECYCLING DRIVES A REDUCTION IN VARIABLE RATE DEBT For personal use only Key Debt Metrics – 31 December 2022 ▪ On 23 December 2022, GARDA’s facility limit was reduced by $30.0 Total debt facilities $290.0 million1 million to $290.0 million following the divestment of Mackay.
Slide 24: Guidance: Outlook for FY23
GUIDANCE OUTLOOK FOR FY23 For personal use only Distributions ▪ FY23 distribution guidance of $0.072 per security, paid in $0.018 quarterly payments. Operational Focus – Projects and Leasing ▪ Expected tax advantaged income of between 95% and 100%. ▪ Successfully deliver leased industrial developmen
Slide 25: Funds From Operations
FUNDS FROM OPERATIONS For personal use only 31 Dec 31 Dec 2022 2021 $000 $000 Net profit / (loss) after tax1 (741) 64,739 Adjustments for non-cash items and one-off items: Valuations – (deduct increases) / add back decreases: Investment properties 2,473 (54,242) Derivatives (49) (2,877) Asset dispos
Slide 26: Income Statement
INCOME STATEMENT For personal use only 31 Dec 31 Dec 2022 2021 $000 $000 Revenue Revenue from ordinary activities ❶ 16,016 15,723 ❶ Revenue increased largely due to leases commencing following Other income 161 35 development, positive portfolio leasing outcomes and increase in recovery income. Net g
Slide 27: Balance Sheet
BALANCE SHEET For personal use only 31 Dec 30 Jun 2022 2022 $000 $000 Current assets Cash and cash equivalents 18,987 19,794 ❶ Two assets held for sale located at Receivables and other assets 12,238 8,928 ▪ Office building in Box Hill ($47.0 million); and Other assets – prepayments 2,496 Assets held
Slide 28: Glossary
GLOSSARY DEFINITIONS AND EXPLANATIONS For personal use only Item / Term Definition / Explanation Calculated as the FY23 forecast distribution rate of $0.072 per security divided by GARDA’s ASX closing price of $1.445 per security on 6 FY23 Current DPU Yield February 2023. Funds from Operations is th
Slide 29: For personal use only
For personal use only w: gardaproperty.com.au e: info@gardaproperty.com.au Level 21, 12 Creek Street, Brisbane QLD 4000 p: +61 7 3002 5300 GPO Box 5270, Brisbane QLD 4001