Slide 1: Results for the year ended 30 June 2010
Goodman Group Results for the year ended 30 June 2010+ For personal use only 19 August 2010
Slide 2: Important notice and disclaimer
Important notice and disclaimer For personal use only + This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL Number 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839)). Th
Slide 3: Contents
Contents For personal use only + Section 1 Introduction + Section 2 Results overview + Section 3 Operational performance + Section 4 Outlook and summary + Appendices – Results analysis – Investment – Development – Management – Capital management 3
Slide 4: Section 1 Introduction
For personal use only Section 1+ Introduction Interlink InterlinkIndustrial Estate, Industrial Estate, Australia Australia 4
Slide 5: Introduction
Introduction For personal use only + Fully diluted operating EPS of 5.25 cents1, with operational momentum continuing into FY11 + Operating profit after tax of $310.0 million + Statutory accounting loss of $562.6 million – reflecting property and equity investment revaluations and other non-operatin
Slide 6: Key achievements
Key achievements For personal use only + Investment earnings contributed 82% of operating EBIT + Occupancy up 1% on a like for like basis to 93% from December 09 – direct portfolio occupancy at 95% Own + Retention at 75% and WALE of 5.5 years + Net operating income flat at property level + Leased 2
Slide 7: Section 2 Results overview
For personal use only Section 2+ Results overview McPhersons Distribution Centre, Australia 7
Slide 8: Results overview
Results overview For personal use only + Underlying fundamentals remain sound despite subdued FY2010 global markets Operating earnings ($M) 310 – > 7% ROA in investment, stable occupancy and rents Operating earnings per security (cents)1 5.6 Operating earnings per security (fully diluted) (cents)1,
Slide 9: FY2010 results – profit and loss
FY2010 results – profit and loss For personal use only + Full year operating profit of $310.0 million 30 June 2010 income statement FY2009 FY2010 $M $M – Statutory loss of $562.6 million primarily incurred in the first Investment (look through) 533.5 448.5 half – includes unrealised property valuati
Slide 10: FY10 results – balance sheet
FY10 results – balance sheet For personal use only + Revaluations have resulted in $0.6 billion reduction in 30 June 2010 balance sheet aggregate assets since 30 June 2009 30 Jun 2009 30 Jun 2010 $M $M – Look-through portfolio weighted average cap rate of 7.9% post Stabilised assets 2,820 2,310 reva
Slide 11: Property valuations
Property valuations For personal use only + Property valuations stabilising in 2H FY2010, driven by improved liquidity + Stabilised investment property and land values down approx. 9% – WACR of 7.9%, unchanged from June 2009 – Reduced short term market rent growth assumptions to flat – was 2 to 3% 3
Slide 12: Intangibles, derivatives and currency
Intangibles, derivatives and currency For personal use only + Intangible impairment of $26 million relates to Intangibles – segment carrying values European Business Parks and Logistics Adjusted for acquisitions, – New capital initiatives and improving demand trends support Book value impairments Bo
Slide 13: Section 3 Operational performance
For personal use only Section 3+ Operational performance M7 Business Hub, Australia 13
Slide 14: Investment
Investment For personal use only + Focus on high quality properties Investment ($m) FY09 FY10 Direct 207.8 176.4 + Overall cash flows remain stable Cornerstones 325.7 272.1 – Occupancy at 93% Look through EBITDA 533.5 448.5 – Minimal arrears - remained flat over 12 months Key metrics1 FY09 FY10 – Re
Slide 15: Development
Development For personal use only + Development business re-activated in FY2010 Q2 Development ($m) FY09 FY10 Revenue 118.0 72.7 – WIP increased from $0.6 billion to $1.3 billion EBITDA 89.8 41.7 + Development commencements matched to third party equity (excluding Interlink): Key metrics FY09 FY10 –
Slide 16: Development
Development For personal use only + Commencements increasing following prudent re- activation of developments after recapitalisation + Enquiry increasing for new A grade facilities, however with longer lead times + Low point in cycle was $175 million in 2H09 16
Slide 17: Development
Development For personal use only + Group and managed funds controlled land inventory can produce > $10 billion (~7 billion sqm) of product + WIP of $1.3 billion consumed 0.5 billion sqm (7%) of controlled land inventory held by the Group and managed funds Andover – UK + 3% identified as non-core an
Slide 18: Management
Management For personal use only + $12.6 billion of external Assets Under Management (AUM), Management ($m) FY2009 FY2010 down 4% on constant currency basis Base fees 81.2 59.6 – ($0.6) billion movement in unrealised revaluations Performance fees 5.2 10.2 – ($1.1) billion movement in currency Proper
Slide 19: Management - AUM
Management - AUM For personal use only + Major new initiatives during the year – Completed $320 million equity raising in GAIF – Launched US$300 million logistics fund in China (GCLH) with CPPIB – Launched $400 million development fund in Australia (GADF) with CPPIB – Established $1.3 billion relati
Slide 20: Section 4 Outlook and summary
For personal use only Section 4+ Outlook and summary Westney Industry Park, New Zealand 20
Slide 21: Outlook and summary
Outlook and summary For personal use only + Actively manage occupancy and retention rates above peers and competitors Own + Long term cornerstone interest target of 20% + Prudent rollout of the Group’s $10 billion development pipeline Develop + Focus on mitigating take-out and funding risk via pre-s
Slide 22: Appendix 1 Results analysis
For personal use only Appendix 1+ Results analysis Homebush Corporate Park, Australia 22
Slide 23: Profit and loss
For personal use only Profit and loss 23
Slide 24: Profit and loss (cont)
Profit and loss (cont) For personal use only GMG results Year ended Year ended Increase / 30 Jun 2009 30 Jun 2010 (decrease) $M $M $M Property investment1 378.7 329.2 (49.5) Management services 131.9 108.3 (23.6) Development 118.2 72.7 (45.5) Operating revenue net of property expenses 628.8 510.2 (1
Slide 25: Profit and loss (cont)
Profit and loss (cont) For personal use only + Total income by business segment for year ended 30 June 2010 Category Total Investment Management Development Unallocated Non-operating items1 $M $M $M $M $M $M Gross property income 237.4 236.2 1.2 Net loss from fair value adjustments on investment pro
Slide 26: Profit and loss (cont)
Profit and loss (cont) For personal use only Category Total Investment Management Development Unallocated Non-operating items1 $M $M $M $M $M $M EBIT – per statutory accounts (355.2) 329.2 53.7 41.7 (41.7) (738.1) Net loss from fair value adjustments on investment properties 210.0 210.0 Share of net
Slide 27: Reconciliation non-operating items
Reconciliation non-operating items For personal use only Non-operating items in statutory profit & loss Notes 30 Jun 2010 $M $M Property valuation Net loss from fair value adjustments on investment properties (210.0) Share of net loss from fair value adjustments on investment properties in associate
Slide 28: Financial position
Financial position For personal use only + Headline gearing of 24.9% As at 30 June 2010 Asia Pacific Europe Total $M $M $M Investment properties 2,189.1 608.3 2,797.4 Investments in funds 1,679.6 669.5 2,349.1 Other segment assets1 486.9 1,416.6 1,903.5 Cash 515.1 Other assets 33.1 Total assets 7,59
Slide 29: Capital allocation
Capital allocation For personal use only + Total property investment portfolio $4.7 billion – reduction in directly owned assets $0.5 billion – decrease of $0.4 billion cornerstone investment1 – $0.6 billion devaluation of direct property and proportionate share of Fund owned properties + Group owne
Slide 30: Gearing bridge
Gearing bridge For personal use only + 30 June 2009 to 30 June 20101 1. Cumulative movement to gearing 30
Slide 31: Net tangible assets
Net tangible assets For personal use only + Movement in net tangible assets for the year ended 30 June 2010 Net tangible asset reconciliation $M $M Per security Total equity at 1 July 2009 3,777.6 1.38 Valuation of non-current assets during the year Valuation of investments properties (210.0) Valuat
Slide 32: Net tangible asset bridge
Net tangible asset bridge For personal use only + For year ended 30 June 2010 1. Calculated on 6,333.4 million securities being closing securities on issue of 6,369.7 million less 36.3 million securities related to ESAP and excludes minority interest 32
Slide 33: Appendix 2 Investment
For personal use only Appendix 2+ Investment Wyatt Distribution Centre, Australia 33
Slide 34: Leasing
Leasing For personal use only + Flat like for like property rent growth + Minimal rental arrears and tenant defaults + ~2 million sqm leased in year + Global platform creating opportunities with marked increase in cross border enquiry + Minimal new supply keeping vacancy levels low Division Leasing
Slide 35: Customers
Customers For personal use only Top 20 global customers (look through)1 1. Includes customers of Goodman Group direct portfolio and its managed funds and is based on net rental income 35
Slide 36: Direct portfolio detail – Australia
Direct portfolio detail – Australia For personal use only Portfolio snapshot Key metrics1 + 31 properties with a total value of $1.9 billion located Total assets A$1.9 billion across key Australian markets Customers 223 + Leasing deals remain strong across the portfolio: Number of properties 31 – 35
Slide 37: Direct portfolio detail – UK
Direct portfolio detail – UK For personal use only Portfolio snapshot Key metrics1 + Leasing activity of 26,360 sqm Total assets A$0.4 billion + Strong enquiry on remaining vacant area Customers 18 + WALE of 5.3 years Number of properties 12 + Cap rates stabilised - with current WACR of 8.0% Occupan
Slide 38: Appendix 3 Development
For personal use only Appendix 3+ Development Interlink, Hong Kong 38
Slide 39: Developments
Developments For personal use only FY2010 Developments Completions Commitments Work in Progress Value ($M) 411 1,182 1,265 Area (m sqm) 0.5 0.6 0.6 Yield (%) 8.5 9.4 9.5 Pre-committed (%) 99 66 69 Weighted Average Lease Term (years) 7.6 8.1 8.9 Development for Third Parties or Funds (%) 100 71 73 As
Slide 40: Developments
Developments For personal use only + Continued to establish Funds to match development capital requirement for development pipeline – Development pipeline in excess of $10 billion – Forecast GLA over 6.9 million sqm – Development timeframe in excess of 10 years – Based on currency as at 30 June 2010
Slide 41: Appendix 4 Management
For personal use only Appendix 4+ Management Amazon, Germany 41
Slide 42: Management platform – Asia Pacific
Management platform For personal use only + Asia Pacific Goodman Managed Funds Asia Pacific GAIF GHKLF GMT1 GCLH MGJLF GADF4 Total assets (A$) $4.4bn $1.6bn $1.2bn $0.2bn $0.7bn $66.3m GMG co-investment (%) 43.8% 24.2% 16.8%2 20.0% n/a 20% GMG co-investment (A$) $1.1bn $0.2bn $0.1bn2 $0.04bn n/a $13
Slide 43: Management platform – Europe
Management platform For personal use only + Europe Goodman Managed Funds Europe ABPP GELF GEBPF CBRERT UK CBRERT CE Total assets (A$) $2.3bn $1.9bn $0.4bn $0.04bn $0.04bn GMG co-investment (%) 35.7% 38.3% 15.5% 20.0% 20.0% GMG co-investment (A$) $0.3bn $0.3bn $0.03bn $0.01bn $0.01bn Number of proper
Slide 44: Goodman Australia Industrial Fund
Goodman Australia Industrial Fund For personal use only Key events Key metrics1 + Successfully closed a fully subscribed A$200 million equity Total assets A$4.4 billion raising to existing unit holders Interest bearing liabilities A$1.7 billion Gearing2 38.6% + 12 month mandatory DRP approved by inv
Slide 45: Goodman Hong Kong Logistics Fund
Goodman Hong Kong Logistics Fund For personal use only Key events Key metrics1 + Commencement of Interlink development Total assets A$1.6 billion + Approximately 327,000 sqm leased during FY2010 Interest bearing liabilities A$0.4 billion + Completed 3 property disposals during the year, all in exces
Slide 46: Goodman Property Trust
Goodman Property Trust For personal use only Key events Key metrics1 + Strong balance sheet Total assets A$1.2 billion – Completed a 5 year, NZ$150 million senior secured bond issue, rated Interest bearing liabilities A$0.4 billion BBB+ by S&P – NZ$53 million of asset sales completed Gearing2 37.0%
Slide 47: Goodman China Logistics Holding
Goodman China Logistics Holding For personal use only Key events Key metrics1 + Goodman China Logistics Holding (GCLH) is a 80/20 joint Total assets A$0.2 billion venture between CPPIB and Goodman. Established in Interest bearing liabilities A$0.04 billion September 2009, GCLH invests in high qualit
Slide 48: Macquarie Goodman Japan Logistics Fund
Macquarie Goodman Japan Logistics Fund For personal use only Key events Key metrics1 + Macquarie Goodman Japan Logistics Fund (MGJLF) was Total assets (based on latest external valuations)2 A$0.7 billion established in 2008 as a core plus fund Interest bearing liabilities A$0.5 billion + MGJLF inves
Slide 49: Goodman Australia Development Fund
Goodman Australia Development Fund For personal use only Key events Key metrics1 Total assets $66.3 million + Launched in May 2010, Goodman Australia Development Interest bearing liabilities n/a Fund (GADF) is a 80/20 joint venture between CPPIB and Goodman Gearing2 n/a Customers 1 + GADF will be es
Slide 50: Arlington Business Parks Partnership (UK)
Arlington Business Parks Partnership (UK) For personal use only Key events Key metrics1 + Continued focus on leasing and asset management initiatives, Total assets A$2.3 billion with over 31,600 sqm of existing space leased within the last 12 Interest bearing liabilities A$1.2 billion months providi
Slide 51: Goodman European Logistics Fund
Goodman European Logistics Fund For personal use only Key events Key metrics1 Total assets A$1.9 billion + Secured 1 year extension of Fund debt facility to December 2012 and relaxation of debt financing covenants Interest bearing liabilities A$1.0 billion Gearing2 53.4% + Practical completion achie
Slide 52: Goodman European Business Parks Fund
Goodman European Business Parks Fund For personal use only Key events Key metrics1 + A$48.5 million (€34.2 million) facility extended for two years Total assets A$0.4 billion from January 2010 Interest bearing liabilities A$0.3 billion + Sale of Paris asset for A$39.7 million (€28 million) in March
Slide 53: CBRERT/GMG UK Co-investment Vehicle
CBRERT/GMG UK Co-investment Vehicle For personal use only Key events Key metrics1 Total assets $39.0 million + Launched in June 2010, the CBRERT/GMG UK co-investment Interest bearing liabilities n/a vehicle is a 80/20 joint venture between CB Richard Ellis Realty Trust and Goodman Gearing n/a Custom
Slide 54: CBRERT/GMG European Co-investment Vehicle
CBRERT/GMG European Co-investment Vehicle For personal use only Key events Key metrics1 Total assets $64.9 million + Launched in June 2010, the CBRERT/GMG UK co-investment Interest bearing liabilities n/a vehicle is a 80/20 joint venture between CB Richard Ellis Realty Trust and Goodman Gearing n/a
Slide 55: Appendix 5 Capital management
For personal use only Appendix 5+ Capital management Anagni Industrial Estate, Italy 55
Slide 56: Group financial covenants
Group financial covenants For personal use only + Goodman amended some of its key banking covenants as part of the refinancing process in August 2009, maintaining significant headroom Covenants Test Covenant Result Headroom Net liabilities1 as a percentage of net tangible assets is not Gearing ratio
Slide 57: Group liquidity position
Group liquidity position For personal use only + Cash and available lines of credit of $1,681.3 million – $515.1 million available cash – $1,166.2 million available lines + Headline gearing significantly reduced to 24.9% during FY2010 + Average debt maturity profile of 3.3 years + Successfully compl
Slide 58: Currency mix
For personal use only Currency mix 58
Slide 59: Financial risk management
Financial risk management For personal use only + Financial risk management in line with Group board policy – interest risk management: – 83% hedged over next 12 months – Weighted average hedge maturity of 4.4 years – Weighted average hedge rate of 5.89%1 vs spot2 2.28% – Current “all in” net WACD 4
Slide 60: Financial risk management
Financial risk management For personal use only Interest rate + Interest rates are hedged to 83% over next 12 months + Weighted average hedge rate of 5.89%1 vs spot3 2.28% - NZD – (hedge 8.05%, spot 4.40%) - JPY – (hedge 1.56%, spot 0.54%) - HKD – (hedge 2.81%, spot 1.53%) - GBP – (hedge 8.28%2, spo
Slide 61: Financial risk management
Financial risk management For personal use only Interest rate hedging profile Euro payable GBP payable HKD payable NZD payable JPY payable Fixed Fixed1 Fixed Fixed rate Fixed rate rate rate % rate As at June €M % £M % HK$M % NZ$M ¥M % 2011 (415.1) 3.78% (459.1) 7.61% (1,831.1) 3.04% (135.3) 7.77% (7
Slide 62: Financial risk management
Financial risk management For personal use only Currency hedging profile Amount Amount Maturing in Hedge rate payable Hedge rate payable year ending June HK$M NZ$M 2011 5.0557 (62.6) 1.1630 (5.3) 2012 4.9743 (62.6) 1.1768 (5.3) 2013 4.8940 (62.6) 1.1932 (5.0) Foreign currency denominated balance she
Slide 63: Exchange rates
Exchange rates For personal use only + Statement of Financial Position – exchange rates as at 30 June 2010 – AUDGBP – 0.5666 (30 June 2009 : 0.4872) – AUDEUR – 0.7050 (30 June 2009 : 0.5751) – AUDHKD – 6.5923 (30 June 2009 : 6.2586) – AUDSGD – 1.1831 (30 June 2009 : 1.1699) – AUDNZD – 1.2321 (30 Jun
Slide 64: Thank you
For personal use only Thank you+