GARDA Property Group · ASX:GDF
GARDA Property — Garda Diversified Property Fund — H1 FY2017 Earnings Presentation
32 slides from GARDA Property's earnings presentation, Feb 21, 2017
Slide 1: Garda Diversified Property Fund Half Year Results Presentation
GARDA DIVERSIFIED HALF YEAR RESULTS PRESENTATION 21 FEBRUARY 2017 PROPERTY FUND For personal use only (ASX CODE: GDF)
Slide 2: GDF at a Glance
GDF AT A GLANCE $183 MILLION For personal use only COMMERCIAL AND INDUSTRIAL PORTFOLIO ~$120 MILLION MARKET CAPITALISATION FY2017 DISTRIBUTION 3.8 YEARS 93% $1.11 GUIDANCE WALE 1,2 OCCUPANCY 1 NTA PER UNIT $0.094 /UNIT PAID QUARTERLY ALIGNED 8.13% 33.5% MANAGER FY2017 PAYOUT RATIO GUIDANCE WEIGHTED
Slide 3: Operational Highlights
OPERATIONAL HIGHLIGHTS For personal use only ACQUISITION (AUGUST 2016) $29.5 million acquisition of industrial facility in Mackay on an initial yield of 7.7%¹. CAPITAL MANAGEMENT – EQUITY (DECEMBER 2016) Completion of a $20 million private placement at an 8% premium to the 5 day VWAP. CAPITAL MANAGE
Slide 4: Results - Overview
RESULTS - OVERVIEW For personal use only 31 DEC 2016 ($) 31 DEC 2015 ($) % MOVEMENT Statutory Net Profit 3,589,000 3,390,000 5.9% Adjustments: Fair value movement in investment properties 1,685,000 590,000 Interest rate swaps mark to market (540,000) 491,000 Incentives amortisation and rent straight
Slide 5: Operations
For personal use only 01 OPERATIONS
Slide 6: Capital Transactions - Acquisition
CAPITAL TRANSACTIONS - ACQUISITION For personal use only • On 19 August 2016, the Fund settled the acquisition of a modern industrial distribution facility for $29.5 million, acquired on an initial yield of 7.7%1. • The property is wholly leased to Wesfarmers subsidiary Blackwoods until 2029, provid
Slide 7: Capital Transactions - Divestment and Acquisition Outlook
CAPITAL TRANSACTIONS For personal use only DIVESTMENT • GDF is considering divesting the Brisbane Airport property located at 12-14 The Circuit, Brisbane Airport and is currently conducting an expressions of interest based sales campaign. • This ten year old property has a current book value of $22.
Slide 8: At Risk Income and Leasing
AT RISK INCOME AND LEASING • FY2017 renewal risk is now fully mitigated following the 2,200m² Kuehne & Nagel renewal at the Lytton industrial property. For personal use only • FY2018 renewal risk is detailed in the graph below. • Portfolio vacancy is located in Cairns, Murarrie and Varsity Lakes. •
Slide 9: Capital Management - Equity
CAPITAL MANAGEMENT - EQUITY • Net tangible assets (NTA) at 31 December 2016 of $1.11 per unit. For personal use only • Currently trading at $1.081 per unit representing a 2.7% discount to NTA. • In December 2016, the Fund completed a $20 million private placement at a subscription price of $1.08, re
Slide 10: Capital Management: Debt
CAPITAL MANAGEMENT: DEBT • Repayment of $20 million in January 2017 reducing LVR from 43.6% to 32.6%. For personal use only SENIOR DEBT FACILITY Drawn 1 Limit • A $1.5 million draw was completed in January 2017 to finance the ongoing capital improvements program, increasing LVR to 33.5%. Senior Debt
Slide 11: Capital Improvements Program
CAPITAL IMPROVEMENTS PROGRAM For personal use only • The capital improvements program continued in H1FY2017 with approximately $3.9 million invested as follows: - $2.0 million at Lake Street, Cairns - $0.7 million at Elgar Road, Box Hill - $1.2 million at Swan Street, Richmond • The reinvestment in
Slide 12: GDF v S&P/ASX A-REIT Indices
GDF V S&P/ASX 200 A-REIT AND S&P/ASX 300 A-REIT For personal use only • 12.5% outperformance of the S&P/ASX A-REIT 200 index for the period 1 July 2016 through to 15 February 2017. • 12.3% outperformance of the S&P/ASX A-REIT 300 index for the period 1 July 2016 through to 15 February 2017. GDF.ASX
Slide 13: GDF v A-REIT Peers
GDF V AREIT PEERS FORECAST FY2017 EPU YIELD (%) FORECAST FY2017 EPU YIELD (%) FORECAST FY2017 DPU YIELD (%) For personal use only 9.6% 8.7% 8.7% 7.9% 8.1% 8.2% 8.3% 7.1% 7.2% 7.6% 7.7% 7.9% 7.1% 7.7% CUA CIP AOF CMA IDR GDF CUA AOF CMA IDR CIP GDF PREMIUM/(DISCOUNT) TO NTA GEARING (%) 43% 35% 28% 34
Slide 14: The Fund
For personal use only 02 THE FUND
Slide 15: Strategy and FY2017 Objectives
STRATEGY AND FY2017 OBJECTIVES For personal use only STRATEGY • The Fund’s purpose is to provide sustainable and growing distributable income derived from investments in commercial offices in city and suburban markets as well as industrial facilities along the eastern seaboard of Australia. • The Fu
Slide 16: FY2017 Outlook and Distribution Guidance
FY2017 OUTLOOK AND DISTRIBUTION GUIDANCE For personal use only DISTRIBUTIONS • FY2017 distribution guidance reaffirmed at $0.094 per unit, a 4.4% increase on FY2016 distributions. • FY2017 forecast payout ratio of approximately 93%. • Current trading price of $1.081, reflects a distribution yield of
Slide 17: GDF Portfolio
For personal use only 03 GDF PORTFOLIO
Slide 18: Diversified Portfolio
DIVERSIFIED PORTFOLIO PORTFOLIO INCOME (by location) For personal use only Melbourne 30% Brisbane 25% CAIRNS 7-19 Lake Street, Cairns ($42.2m) MACKAY Gold Coast 7% 69-79 Diesel Drive, Mackay ($29.5m) BRISBANE Mackay 12% Cairns 26% GOLD COAST 747 Lytton Road, Murarrie ($14.1m) 12-14 The Circuit, Airp
Slide 19: WALE and Occupancy
WALE AND OCCUPANCY FY2018 lease renewals provide an opportunity to materially improve portfolio WALE. For personal use only 12.0 12.0 WALE by income (Years) 4.31 1 3.8 2.5 2.9 2.9 4.31 2.2 1.9 2.1 3.8 2.5 2.9 2.9 2.2 1.9 2.1 7-19 Lake Street, 747 Lytton Road, 154 Varsity 142 Benjamin 12-14 The Circu
Slide 20: Property and Tenants
PROPERTY AND TENANTS PORTFOLIO INDEPENDENT NABERS PROPERTY PORTFOLIO AGE NLA (m2) CAP RATE (%) For personal use only VALUE (%) VALUATION¹ (STARS) Office (79% by value) 572-576 Swan Street, Richmond 18% 8 6,587 7.50% $33,500,000 5 436 Elgar Road, Box Hill 11% 29 5,725 8.50% $19,400,000 2.5 7-19 Lake
Slide 21: Property and Tenants (continued)
PROPERTY AND TENANTS (continued) For personal use only TOP 10 TENANTS (INCOME) Commonwealth Govt. 14% (CASA) Golder Associates 13% J. Blackwoods & Sons 12% QLD State Govt. 8% (Transport & Main Roads) Fulton Hogan 5% Spotless 5% CGI 5% Stellar Asia Pacific 4% Serco 4% Planet Innovations 3% 21 | GARDA
Slide 22: Appendix: Financial Information
For personal use only APPENDIX 1 FINANCIAL INFORMATION
Slide 23: Income Statement
INCOME STATEMENT For personal use only • Profit attributable to unitholders of $3.6 million, a 31 DEC 2016 31 DEC 2015 INCOME STATEMENT 5.9% increase on the corresponding period. $000’S $000’S Property rental income 9,441 8,493 • As a result of the industrial property acquired in August 2016, and th
Slide 24: Funds From Operations (FFO)
FUNDS FROM OPERATIONS (FFO) For personal use only • FFO of $5.2 million, representing a 28.5% increase on FUNDS FROM OPERATIONS the prior period FFO of $4.0 million. 31 DEC 2016 31 DEC 2015 $000’S $000’S • Increase in FFO is a result of additional lease revenue Net profit 3,589 3,390 during the year
Slide 25: Balance Sheet
BALANCE SHEET For personal use only • Cash has increased $20 million on the prior period as a 31 DEC 2016 30 JUNE 2016 BALANCE SHEET result of proceeds from the $20 million private placement $000’S $000’S Assets completed in December 2016. Cash and cash equivalents 22,156 2,526 • Investment properti
Slide 26: Appendix: GDF Assets
For personal use only APPENDIX 2 GDF ASSETS
Slide 27: Portfolio Summary - Swan Street Richmond, Elgar Road Box Hill
PORTFOLIO SUMMARY – PROPERTY 572 - 576 SWAN STREET, 436 ELGAR ROAD, For personal use only RICHMOND, VIC BOX HILL, VIC Date acquired: Nov-07 Occupancy: 100% Date acquired: Sept-07 Occupancy: 100% Valuation: $33,500,000 WALE: 2.2 years Valuation: $19,400,000 WALE: 4.3 years 1 Ownership interest: 100%
Slide 28: Portfolio Summary - Diesel Drive Mackay, Benjamin Place Lytton
PORTFOLIO SUMMARY – PROPERTY 69-79 DIESEL DRIVE, 142 BENJAMIN PLACE, For personal use only MACKAY, QLD LYTTON, QLD Date acquired: Aug-16 Occupancy: 100% Date acquired: Sept-07 Occupancy: 100% Valuation: $29,500,000 WALE: 12 years Valuation: $8,600,000 WALE: 2.9 Ownership interest: 100% Tenants: 1 Ow
Slide 29: Portfolio Summary - Lytton Road Murarrie, The Circuit Brisbane Airport
PORTFOLIO SUMMARY – PROPERTY 747 LYTTON ROAD, 12-14 THE CIRCUIT, For personal use only MURARRIE, QLD BRISBANE AIRPORT, QLD Date acquired: May-07 Occupancy: 86% Date acquired: Jan-07 Occupancy: 100% Valuation: $14,100,000 WALE: 1.9 years Valuation: $22,400,000 WALE: 2.9 years Ownership interest: 100%
Slide 30: Portfolio Summary - Lake Street Cairns, Varsity Pde Gold Coast
PORTFOLIO SUMMARY – PROPERTY 7-19 LAKE STREET, 154 VARSITY PDE, For personal use only CAIRNS, QLD GOLD COAST, QLD Date acquired: Jun-06 Occupancy: 83% Date acquired: Aug-07 Occupancy: 90% Valuation (inc. land at Grafton St): $42,200,000 WALE: 2.5 years Valuation: $12,900,000 WALE: 2.1 years Ownershi
Slide 31: Disclaimer
INSERT DISCLAIMER TITLE HERE This presentation (Presentation) has been prepared on behalf of GARDA Capital Limited (ACN 095 039 366) (AFSL 246714) (GARDA) as responsible entity of the GARDA Diversified Property Fund (GDF or the Fund). The information and statements in this Presentation were prepared
Slide 32: Garda Diversified Property Fund Half Year Results Presentation
For personal use only GARDA DIVERSIFIED PROPERTY FUND HALF YEAR RESULTS PRESENTATION | 21 FEBRUARY 2017
Garda Diversified Property Fund — H1 FY2017 Earnings Presentation on 6ix