Gdi Property Group · ASX:GDI
Gdi Property — FY2017 Earnings Presentation
36 slides from Gdi Property's earnings presentation, Aug 21, 2017
Slide 1: Annual results presentation
For personal use only GDI PROPERTY GROUP Annual results presentation 21 August 2017
Slide 2: Disclaimer
Disclaimer This presentation has been prepared and issued by GDI Property Group Limited (ACN 166 479 189) and GDI Funds Management Limited (ABN 34 107 354 003, AFSL Number 253 142) as responsible entity of GDI Property Trust (ARSN 166 598 161). Shares in GDI Property Group Limited are stapled to uni
Slide 3: Introduction
For personal use only INTRODUCTION LINKING EQUITY MILL GREEN, TO PERFORMANCE PERTH 2
Slide 4: Overview
Overview For personal use only NTA – $1.12 per security FFO of 8.46 cents per Distribution of 7.75 cents per security security Securityholder return in FY17 of Absolute Total Return in FY17 of 24.58% Loan to value ratio of 8% 18.56% LINKING EQUITY TO PERFORMANCE 3
Slide 5: Operational highlights
Operational highlights… Sales 25 Grenfell Street, Adelaide, for an effective sales price of $124.0 million, a premium of $10.0 million over the last independent valuation For personal use only 307 Queen Street, Brisbane, for an effective sales price of $141.0 million, a premium of $14.5 millio
Slide 6: …leads to financial success
…leads to financial success NTA1 of $1.12 per security of 11.00 cents per security from 30 June 2016 For personal use only Absolute total return Significant valuation gains at 66 Goulburn Street, Sydney (+$35.5 million) and 50 Cavill Avenue, Surfers Paradise (+$22.6 million) 20% 18% FFO2,3 o
Slide 7: Post balance sheet
Post balance sheet Sale of 66 Goulburn Street, Sydney Acquisition of IKEA, Innaloo For personal use only Exchanged contracts to sell 66 Goulburn Street, Sydney, for $252.0 Acquisition of IKEA’s only Perth store for $143.5 million million, an effective sales price of approximately $228.0 million
Slide 8: Financial results
For personal use only FINANCIAL RESULTS LINKING EQUITY 66 GOULBURN TO ST, PERFORMANCE SYDNEY 7
Slide 9: Contributors to FFO and AFFO
Contributors to FFO and AFFO Property Division FFO primarily due to sales of 25 Grenfell Street, FY17 FY16 Adelaide and 307 Queen Street, Brisbane For personal use only $’000 $’000 Included in FFO (but not AIFRS) is: Property Division FFO 53,715 60,309 the final draw downs of the guarantee for
Slide 10: Balance sheet in a strong position
Balance sheet in a strong position Jun-17 Settlement1 Distribution2 Oct-17 Pro forma for post balance sheet events $'000 $'000 $'000 $'000 For personal use only Current assets Cash and cash equivalents 23,113 178,955 (20,838) 181,230 Trade and other receivables 3,122 - - 3,122 Non-current assets hel
Slide 11: Debt profile and interest rate hedging
Debt profile and interest rate hedging As at 30 June 2017, drawn debt on the principal facility of $49.4 million Board hedging policy of at least 50% of drawn debt hedged Undrawn debt of $65.6 million to fund working capital requirements Maintained hedging at the bottom of the range since IP
Slide 12: The property portfolio
For personal use only THE PROPERTY PORTFOLIO LINKING 235 EQUITY STANLEY TO PERFORMANCE STREET, TOWNSVILLE 11
Slide 13: Portfolio overview
Portfolio overview For personal use only LINKING EQUITY TO PERFORMANCE 12
Slide 14: For personal use only
13 Treasury Exchange Plaza Elizabeth Quay St Martins Tower Allendale Square BCG Centre 100 SGT 108 SGT 140 SGT Quadrant Brookfield Place 2 BHP Convention Centre Westralia Square Alluvion Mill Green Complex Forrest Centre 225 SGT LINKING EQUITY TO PERFORMANCE Old Woodside QV1 (Chevron) New Woodside F
Slide 15: Perth Market overview
Perth Market overview Continued improvement in Perth office market Limited new supply 60,000 3rd continuous quarter of positive net absorption For personal use only 50,000 Effective rents stabilising, with anticipated improvement through the second half of CY17 40,000 Limited new supply fore
Slide 16: St Georges Terrace, Perth
197 St Georges Terrace, Perth Over 30% of 197 St Georges Terrace either vacant Key metrics as at: Jun-17 Jun-16 (1,670sqm) or expiring in FY18 For personal use only Chevron lease expiry (4,643sqm) in September 2017 Independent valuation date Dec-16 Dec-15 AMEO (September 2017) and Aker Solutio
Slide 17: St Georges Terrace, Perth
197 St Georges Terrace, Perth For personal use only Leasing strategy of bottom up, with patience to allow the market to meet our expectations of effective rents 24 AKER SOLUTIONS (Feb 2018) Likely departure, excellent 360 degree views. Last floor to bring to 23 market with expectations of +/- $700
Slide 18: Mill Street, Perth
5 Mill Street, Perth 5 Mill Street all but full Key metrics as at: Jun-17 Jun-16 Occupancy increased to 98%1 of NLA, up from 76% at For personal use only 30 June 2016 Independent valuation date Dec-16 Dec-15 Only remaining space is a small suite on Level 6 Independent valuation ($M) 53.50 53.0
Slide 19: Mill Street, Perth
1 Mill Street, Perth 1 Mill Street remains vacant Key metrics as at: Jun-17 Jun-16 Not looking at long term leasing given both the time of the For personal use only cycle and redevelopment opportunities Independent valuation date Dec-15 Dec-15 Independent valuation at 31 December 2016 decrease
Slide 20: Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise Capital expenditure program, including incentives and Key metrics as at: Jun-17 Jun-16 leasing fees, on time and on budget For personal use only Total budget at time of acquisition was $16.0 Independent valuation date Jun-17 Jun-16 million, tracking in line wit
Slide 21: Liverpool Road, Ashfield
223 – 237 Liverpool Road, Ashfield 100% leased to NSW Government Property (Department Key metrics as at: Jun-17 Jun-16 of Family and Community Services) until 31 December For personal use only 2020 Independent valuation date Jun-17 Feb-16 Significant rent reversion potential, or STCA, redevelopm
Slide 22: Stanley Street, Townsville
235 Stanley Street, Townsville Discussing lease extensions with existing tenants, Key metrics as at: Jun-17 Jun-16 particularly ATO and DHS For personal use only Plan to broaden the property’s appeal to the private as Independent valuation date Jun-17 Mar-16 well as the public sector Independent
Slide 23: Funds business
For personal use only FUNDS BUSINESS LINKING 50 EQUITY CAVILL TO PERFORMANCE AVE, SURFERS PARADISE 22
Slide 24: Funds Management business
Funds Management business Funds Management business is sub-scale at <$750.0 million FUM Case Study – GDI No. 40 Office Trust Following sales and revaluations, FUM in the Funds Management Acquired 80 George Street, Parramatta in June 2015 for $38.7 million For personal use only business is $323
Slide 25: GDI Total Return Fund and GDI Office Trust
GDI No. 27 Total Return Fund GDI No. 29 GDI Office Trust Key statistics Key statistics For personal use only Established June 2007 Established December 2008 AUM $7.5 million AUM $14 million Gearing 35% Gearing 65% GDI Property Group GDI Property Group - - ownership ownership FY17 distributions FY17
Slide 26: GDI Brisbane Office Trust and Perth CBD Office Trust
GDI No. 33 Brisbane Office Trust GDI No. 36 Perth CBD Office Trust Key statistics Key statistics Established For personal use only May 2010 Established October 2012 AUM $34 million AUM $129 million Gearing 27% Gearing 48% GDI Property Group - GDI Property Group ownership - ownership FY17 distributio
Slide 27: GDI Diversified Property Trust and Office Trust
GDI No. 38 Diversified Property Trust GDI No. 42 Office Trust Key statistics Key statistics For personal use only Established June 2014 Established June 2016 AUM $40.2 million AUM $99.0 million Gearing 37% Gearing 31% GDI Property Group GDI Property Group - 43.68% ownership ownership FY17 distributi
Slide 28: Outlook & guidance
For personal use only OUTLOOK & GUIDANCE LINKING 66 EQUITY GOULBURN TO ST, PERFORMANCE SYDNEY 27
Slide 29: A disciplined approach to capital management
A disciplined approach to capital management GDI Property Group has demonstrated discipline when it comes to buying properties, with all acquisitions since IPO performing extremely well: For personal use only UGL Portfolio (GDI No. 38 Diversified Property Trust) • Four of seven assets sold, $0.59
Slide 30: FY18 and beyond
FY18 and beyond On settlement of 66 Goulburn Street, Sydney, GDI Property Group will Weighting of balance sheet to Mill Green1 move to a significant net cash position For personal use only GDI Property Group will continue to monitor opportunities nationally and does intend to acquire properties
Slide 31: Appendix
For personal use only APPENDIX LINKING 235 EQUITY STANLEY TO PERFORMANCE STREET, TOWNSVILLE 30
Slide 32: Profit or Loss
Profit or Loss Group Trust 2017 2016 2017 2016 $'000 $'000 $'000 $'000 For personal use only Revenue from ordinary activities Property income 68,448 74,558 68,448 74,558 Funds management income 3,285 3,709 - - Interest revenue 345 2,508 218 2,491 Other income 7 16 7 - Total revenue from ordinary act
Slide 33: NPAT to AFFO
NPAT to AFFO Group 2017 2016 For personal use only $'000 $'000 Total comprehensive income for the year 107,316 47,701 Portfolio acquisition and other transaction costs 407 8,988 Contribution resulting from consolidation of GDI No. 42 Office Trust (5,864) (149) Distributions / funds management fees r
Slide 34: Property by property information
Property by property information FY18 FY17 FY16 FY 17 "As is" For personal use only $m $m $m $m Property Incentives AIRFS AIRFS Capex Maintenance and Lease FFO NPI1 FFO NPI1 FFO spent Capex spent costs 1 Mill Street (0.55) 0.26 0.01 0.00 5 Mill Street 4.59 1.77 0.02 0.80 197 St Georges Terrace 14.87
Slide 35: The GDI Property Group business model
The GDI Property Group business model Maintaining distributions, funding capex and incentives with a For personal use only GDI Property Group’s office market fundamentals core-plus strategy Buy well located buildings with good light and easily divisible floor We currently maintain a progressive dist
Slide 36: For personal use only
Unsaved Document / 29/07/2013 / 16:23 For personal use only LINKING EQUITY TO PERFORMANCE 35