Gdi Property Group · ASX:GDI
Gdi Property — FY2020 Earnings Presentation
32 slides from Gdi Property's earnings presentation, Aug 24, 2020
Slide 1: Annual results presentation FY20
For personal use only GDI PROPERTY GROUP Annual results presentation FY20 24 August 2020
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: Significant progress in FY20
Significant progress in FY20 Westralia Square leasing Acquisition of 180 Hay Street, Perth For personal use only Leased 14,522sqm of lower level accommodation for 5 and 6 years to Exchanged a contract to acquire 180 Hay Street, Perth, for $12.6 million Minister for Works Comprises 4,925sqm of
Slide 4: Significant progress in FY20
Significant progress in FY20 GDI No. 46 Property Trust Major Perth development opportunities For personal use only Purchased a $98.0 million portfolio of 17 metropolitan Perth properties WS2 (Portfolio) occupied by high profile car dealerships and service centres on major arterial roads Increase
Slide 5: FY20 a year of financial consolidation
FY20 a year of financial consolidation Having transitioned the portfolio to be heavily weighted to Perth and de- levered the balance sheet, FY20 was a year of consolidation For personal use only Remained disciplined with our balance sheet Assets are well positioned to capture the expected upsi
Slide 6: A unique position heading in to FY21 and beyond
A unique position heading in to FY21 and beyond •Delivered an annualised total return since listing in 2013 of 14.90% p.a. For personal use only Total return focused •A track record of divesting and reinvesting •Demonstrated discipline and restraint •Principal Facility gearing of only 16% LVR Financ
Slide 7: Leasing to deliver earnings upside
Leasing to deliver earnings upside For personal use only PROPERTY DIVISION Westralia Square 180 Hay Street, Perth Mill Green 16,341 sqm to lease 4,925 sqm to lease 4,613 sqm to lease ‘As is’ FY21 FFO of $7.9 million ‘As is’ FY21 FFO of $(0.7) million ‘As is FY21 FFO of $18.6 million Fully let FFO of
Slide 8: Financial results
For personal use only FINANCIAL RESULTS 50 CAVILLEQUITY LINKING AVE, SURFERS PARADISE TO PERFORMANCE 7
Slide 9: Contributors to FFO and AFFO
Contributors to FFO and AFFO June 20 June 19 Property Division FFO lower than FY19 $’000 $’000 At Westralia Square, contribution lower ($22.5 million vs FY19 of $27.1 For personal use only million) due to departure of UGL and lower rents on MOW amended Property Division FFO 49,146 54,306 leases
Slide 10: Impact of COVID-19
Impact of COVID-19 Rent relief provided to tenants in the wholly owned portfolio to the period ended 30 June 2020 is summarised below: For personal use only Rent relief provided $’000 Rent waived (by agreement or accordance with the Code) 518 Rent deferred (by agreement or in accordance with the C
Slide 11: Balance sheet remains in a strong position
Balance sheet remains in a strong position Jun-20 Jun-19 Pro forma for post balance sheet events $'000 $'000 For personal use only Current assets Cash and cash equivalents 10,100 18,775 Trade and other receivables 5,581 2,819 Non-current assets held for sale 102,240 - Other assets 8,919 2,574 Total
Slide 12: Debt profile and interest rate hedging
Debt profile and interest rate hedging As at 30 June 2020, drawn debt on the Principal Facility of $120.0 million Board hedging policy gives management more flexibility around hedging, and undrawn debt of $85.0 million particularly when drawn debt is <$100.0 million For personal use only Incre
Slide 13: Property portfolio
For personal use only PROPERTY PORTFOLIO MILL GREEN, LINKING PERTH EQUITY TO PERFORMANCE 12
Slide 14: Perth market
Elizabeth Quay Treasury 13 Exchange Plaza St Martins Tower Allendale Square BCG Centre 100 SGT 108 SGT Quadrant 140 SGT Brookfield Place 2 Convention Centre BHP Alluvion Forrest Centre 225 SGT 240 St Georges Terrace Bishop C Perth market LINKING EQUITY TO PERFORMANCE QV1 (Chevron) New Woodside For p
Slide 15: Westralia Square
Westralia Square Signed two leases with Minister for Works over 14,522sqm Key metrics as at: Jun-20 Jun-19 of the lower levels (1-5, 8,9 and 10) For personal use only 12,689sqm to WAPOL for 5 years1 commencing 1 Independent valuation date Jun-20 Jun-19 February 2021 Independent valuation ($M) 32
Slide 16: St Georges Terrace, Perth
197 St Georges Terrace, Perth Post lock-down, some interest in the remaining vacant Key metrics as at: Jun-20 Jun-19 suites on levels 9 and 10 For personal use only Independent valuation date Dec-19 Dec-18 Liberty Serviced Offices consolidated its Perth CBD operations in to the building, taking
Slide 17: Mill Street, Perth
5 Mill Street, Perth Tenant departures largely a result of expansion that can’t Key metrics as at: Jun-20 Jun-19 be accommodated, business contraction, or M&A For personal use only Independent valuation date Dec-19 Dec-18 However, the market for small B grade fitted out suites has become more co
Slide 18: Mill Street, Perth
1 Mill Street, Perth Development Application has been finalised and is now ready for submission to the local planning authority. For personal use only The integrated development now includes; 45,000m2 prime office tower Broader precinct works to 5 Mill Street including enclosed food and dini
Slide 19: Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise Occupancy steady during 2020, although there has been Key metrics as at: Jun-20 Jun-19 some tenant turnover. For personal use only Leasing momentum has gained post lockdown: Independent valuation date Jun-20 Dec-18 Regus and Randstad have signed five and thre
Slide 20: Stanley Street, Townsville
235 Stanley Street, Townsville ATO lease extended for six months to 31 August 2020 Key metrics as at: Jun-20 Jun-19 DHS (Services Australia) signed a new six year lease For personal use only Independent valuation date Jun-19 Jun-19 commencing 1 March 2020 for 4,644 sqm, 2,322sqm of which it occu
Slide 21: IDOM Portfolio, Perth
IDOM Portfolio, Perth Settled the IDOM Portfolio in February 2020 on behalf of Key metrics as at: Jun-20 GDI No. 46 Property Trust For personal use only Independent valuation date Sep-19 17 metropolitan Perth properties occupied by high profile dealerships and service centres Independent valuati
Slide 22: Funds management
For personal use only FUNDS MANAGEMENT 235 STANLEY LINKING STREET, EQUITY TOWNSVILLE TO PERFORMANCE 21
Slide 23: Funds Management business
Funds Management business Funds Management business FFO of $6.0 million included $1.7 million from distributions received from GDI No. 42 Office Trust For personal use only $0.7 million from distributions received from GDI No. 42 Property Trust $1.2 million relating to the establishment of G
Slide 24: Funds Management business
Funds Management business GDI No. 29 Office Trust GDI No. 42 Office Trust Originally a two asset fund, now only holding 12 strata Originally a two asset fund with similar asset suites in 251 Adelaide Terrace management plans For personal use only 100 of the 112 strata suites sold with investor
Slide 25: Outlook
For personal use only OUTLOOK WESTRALIA SQ ‐ TO LINKING EQUITY 141PERFORMANCE ST GEORGES TCE 24
Slide 26: Distribution policy
Distribution policy GDI aims to deliver a consistent 12.0+%p.a. total return, measured both annually and on a three year rolling basis For personal use only Total return is measured as NTA growth + distributions In theory, the total return could be either all distribution or all NTA growth D
Slide 27: Appendix
For personal use only APPENDIX 235 STANLEY LINKING STREET, EQUITY TOWNSVILLE TO PERFORMANCE 26
Slide 28: Profit or Loss
Profit or Loss GDI Trust 2020 2019 2020 2019 For personal use only $'000 $'000 $'000 $'000 Revenue from ordinary activities Property income 67,663 74,547 67,759 74,597 Funds management income 2,206 2,129 - - Interest revenue 163 204 152 194 Other income 263 928 200 928 Total revenue from ordinary ac
Slide 29: NPAT to AFFO
NPAT to AFFO GDI For personal use only 2020 2019 $’000 $'000 Total comprehensive income for the year 66,740 85,070 Acquisition expenses and discontinued acquisition 5,448 7 Contribution resulting from consolidation of GDI No. 42 Office Trust (4,772) (6,594) Distributions / funds management fees rece
Slide 30: Property by property information
Property by property information FY21 FY20 FY19 FY20 "As is“1 For personal use only $m $m $m $m Property Incentives Capex Maintenance and Lease FFO IFRS NPI2 FFO IFRS NPI2 FFO spent Capex spent costs 1 Mill Street (0.6) - - - 5 Mill Street 2.8 0.5 0.2 1.3 197 St Georges Terrace 16.4 2.0 0.6 2.3 Mill
Slide 31: Westralia Square – leases explained
Westralia Square – leases explained For personal use only LVL 17,18 Vacant – UGL departed 5 January 2020 Existing leases varied to facilitate WAPOL’s relocation in the building. Levels 11 and 16 expired 31 July 2020 Level 11 subject to a heads of agreement for lease commencing FY22 LVL 11-16 L
Slide 32: For personal use only
For personal use only LINKING EQUITY TO PERFORMANCE 31