GARDA Property Group · ASX:GDF
GARDA Property — Garda Diversified Property Fund — FY2016 Earnings Presentation
32 slides from GARDA Property's earnings presentation, Aug 29, 2016
Slide 1: Full Year Results Presentation
GARDA DIVERSIFIED FULL YEAR RESULTS PRESENTATION PROPERTY FUND (GDF) 29 AUGUST 2016 For personal use only
Slide 2: Annual Results Highlights
INSERT ANNUAL TITLE RESULTS HERE- HIGHLIGHTS For personal use only 93.6% STATUTORY NET PROFIT FUNDS FROM OPERATIONS DISTRIBUTIONS $17.86m $9.1m $8.5m PAYOUT RATIO 19.04 cents per unit 9.67 cents per unit 9.00 cents per unit $12.45m (8.9%) $0.10 (10%) VALUATION INCREASE INCREASE IN NTA PER UNIT TO $1
Slide 3: Annual Results - Income and Distributions
ANNUAL RESULTS - INCOME AND DISTRIBUTIONS For personal use only FY2016 PER UNIT $ (93,804,456 UNITS ON ISSUE) Statutory net profit 17,864,000 19.04 cents Less Fair value movement in investment properties (10,093,000) Add Interest rate swaps marked to market 1,127,000 Add Other 178,000 Funds from ope
Slide 4: Annual Results - Portfolio Valuations
ANNUAL RESULTS - PORTFOLIO VALUATIONS For personal use only 2015 2016 2016 INCREASE INVESTMENT PROPERTIES $ CAP RATE $ % 7-19 Lake Street, Cairns 37,000,000 8.50% 42,200,000 14.05% 12-14 The Circuit, Brisbane Airport 20,000,000 8.60% 22,400,000 12.00% B2, 747 Lytton Road, Murarrie 13,600,000 8.39% 1
Slide 5: Capital Management: Equity
CAPITAL MANAGEMENT: EQUITY • Unitholders approved an on-market buy-back facility of up • Buy-back facility closed on 10 May 2016. For personal use only to 20 million units. • Increase in ASX trading price to $1.051, a 7% • 3.4 million units were bought back at an average price of discount to 30 June
Slide 6: Capital Management: Debt
CAPITAL MANAGEMENT: DEBT The Fund has a long term gearing target of between 30% and For personal use only • FACILITY LIMIT AND DRAWN BALANCE AT 30 JUNE 2016 35% but may operate at up to 45% loan to value ratio (LVR). Drawn Limit Senior Debt $45.6m $63m • The Fund has entered into interest rate swaps
Slide 7: Capital Improvements Program
CAPITAL IMPROVEMENTS PROGRAM For personal use only • The capital improvements program saw $2.7 million reinvested into the properties, particularly in Cairns and Box Hill being the two older assets, nearing 30 years in age. • This reinvestment is expected to continue at a similar or greater rate to
Slide 8: Leasing During FY2016
LEASING DURING FY2016 For personal use only PORTFOLIO LEASING COMPLETED PROPERTY TENANT NLA (m²) TERM START DATE RENT REVIEW Richmond Fulton Hogan 1,847 6 years 1/07/16 3.50% Vasity Lakes QLD Police Service 968 3 years 1/02/17 4.00% Murrarrie Automatic Data Processing 204 5 years 1/03/16 3.75% Cairn
Slide 9: Acquisition (August 2016)
ACQUISITION (AUGUST 2016) • On 26 August 2016, GDF settled the acquisition of a modern industrial distribution facility for $29.5 million. For personal use only • It has been acquired on an initial yield of 7.7%¹ • The property is wholly leased to Wesfarmers subsidiary Blackwoods until 2029, providi
Slide 10: Acquisition - Funding
ACQUISITION - FUNDING The acquisition (~$31.5m total acquisition cost) was wholly debt For personal use only • SENIOR DEBT FACILITY POST ACQUISITION funded through senior debt facilities provided by St. George Drawn Limit Bank. Senior debt $77.4m $83.6m • This debt has not been hedged and is subject
Slide 11: Fund Objectives
FUND OBJECTIVES For personal use only • The Fund’s objective 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 Fund will maintain a con
Slide 12: FY2017 Outlook and Distribution Guidance
FY2017 OUTLOOK AND DISTRIBUTION GUIDANCE DISTRIBUTIONS For personal use only • FY2017 distribution guidance of $0.094 per unit, a 4.4% increase on FY2016 distributions. • Represents a payout ratio of ~84% at 42% LVR after the recent Blackwood’s acquisition. • At current market price of $1.051, refle
Slide 13: Appendix: Financials
For personal use only APPENDIX 1 FINANCIALS
Slide 14: Income Statement
INCOME STATEMENT For personal use only 30 JUNE 2016 30 JUNE 2015 INCOME STATEMENT $000’S $000’S Property rental income 17,106 17,434 Property expenses (4,823) (5,131) Trust level expenses (1,558) (1,796) Finance costs (1,745) (12,450) Net loss of financial liabilities held at fair value through prof
Slide 15: Funds From Operations (FFO)
FUNDS FROM OPERATIONS (FFO) For personal use only FUNDS FROM OPERATIONS 30 JUNE 2016 30 JUNE 2015 $000’S $000’S Net profit/(loss) 17,864 (6,302) Net loss on financial liabilities held at fair value 1,127 2,445 Fair value movement in investment properties (10,093) 711 Loss on sale of investment prope
Slide 16: Balance Sheet
BALANCE SHEET For personal use only 30 JUNE 2016 30 JUNE 2015 BALANCE SHEET $000’S $000’S Assets Cash and cash equivalents 2,526 3,233 Trade and other receivables 318 353 Investment properties 153,527 140,650 Total Assets 156,371 144,236 Liabilities Trade and other payables 1,481 1,696 Borrowings (c
Slide 17: Appendix: GDF Overview
For personal use only APPENDIX 2 GDF OVERVIEW
Slide 18: GDF at a Glance
GDF AT A GLANCE $182.6 MILLION For personal use only COMMERCIAL AND INDUSTRIAL PORTFOLIO $1.11 FY2017 DISTRIBUTION 4.1 YEARS 93% NTA PER UNIT GUIDANCE $0.094/UNIT WALE OCCUPANCY AUGUST 2016 PAID QUARTERLY POST ACQUISITION 8.13% 42% 4.5 TIMES ALIGNED MANAGER WEIGHTED AVERAGE INTEREST COVER GARDA CAPI
Slide 19: Diversified Portfolio
DIVERSIFIED PORTFOLIO PORTFOLIO INCOME (by location) For personal use only Melbourne 30% Brisbane 26% CAIRNS 7-19 Lake Street, Cairns ($42.2m) MACKAY 69-79 Diesel Drive, Mackay ($29.5m) Gold Coast 7% BRISBANE Mackay 12% Cairns 25% GOLD COAST 747 Lytton Road, Murarrie ($14.1m) 12-14 The Circuit, Airp
Slide 20: Property Assets
PROPERTY ASSETS For personal use only PORTFOLIO INDEPENDENT NABERS PROPERTY PORTFOLIO AGE NLA (m2) CAP RATE (%) VALUE (%) VALUATION¹ (STARS) Office (79% by value) 9-19 Lake Street, Cairns 23% 27 14,956 8.50% $42,200,000 4.5 12-14 The Circuit, Brisbane Airport 12% 9 4,675 8.60% $22,400,000 5 Bldg 2,
Slide 21: Key Tenants
KEY TENANTS For personal use only TOP 10 TENANTS TENANT SECTOR RENT ($) % TOTAL LOCATION Commonwealth Govt (CASA) Federal Government $2.75m 14% Brisbane Golder Associates Engineering & Construction $2.58m 13% Melbourne Blackwoods & Sons Industrial Safety $2.45m 12% Mackay QLD State Govt (Transport &
Slide 22: Key Tenants
KEY TENANTS For personal use only 22 | GARDA DIVERSIFIED PROPERTY FUND FULL YEAR RESULTS PRESENTATION
Slide 23: WALE and Occupancy
WALE AND OCCUPANCY • Significant improvement in WALE possible during FY2017 as material tenant expiry is managed particularly at the Richmond property For personal use only (FY2018 expiry) and in Cairns (FY2019 expiry). WALE by income (Years) Jun Jun 15 15 Jun Jun 16 16 12.5 11 1 1 4.4 4 4.1 3.4 3.0
Slide 24: At Risk Income
AT RISK INCOME • Leasing risk in FY2017 has largely been mitigated with only one material lease, 2,200m² (Kuehne Nagel) at the Lytton industrial prop- For personal use only erty representing 2% of Fund income currently expiring on 31 December 2016 yet to be resolved. • Discussions with both the sitt
Slide 25: Lost Income/Vacancy
LOST INCOME/VACANCY • Vacancy and associated lost income is predominantly located in Cairns with minor impact from both Varsity Lakes and the Murarrie For personal use only office park assets. • Cairns vacancy is expected to reduce with the increasing building ‘offer’ as a result of the capital impr
Slide 26: Appendix: GDF Assets
INSERT TITLE HERE For personal use only APPENDIX 3 GDF ASSETS 26 | GARDA DIVERSIFIED PROPERTY FUND FULL YEAR RESULTS PRESENTATION
Slide 27: Portfolio Summary - Richmond and 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: 2.8 years Valuation: $19,400,000 WALE: 3.0 years Ownership interest: 100% Te
Slide 28: Portfolio Summary - Cairns and Varsity Lakes
PORTFOLIO SUMMARY – PROPERTY 7-19 LAKE STREET, 154 VARSITY PDE, For personal use only CAIRNS, QLD GOLD COAST, QLD Date acquired: Jun-06 Occupancy: 81% Date acquired: Aug-07 Occupancy: 89% Valuation (inc. land at Grafton St): $42,200,000 WALE: 3.0 years Valuation: $12,900,000 WALE: 2.6 years Ownershi
Slide 29: Portfolio Summary - Murarrie and 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: 2.4 years Valuation: $22,400,000 WALE: 3.4 years Ownership interest: 100%
Slide 30: Portfolio Summary - Mackay and 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: 12.5 years Valuation: $8,600,000 WALE: 2.5 Ownership interest: 100% Tenants: 1
Slide 31: Disclaimer
DISCLAIMER The information provided in and accompanying this presentation (Presentation) has been prepared on behalf of GARDA Capital Limited (ACN 095 039 366) (GARDA), and GARDA Funds Management Limited (ACN 140 857 405) (AFSL 398764) (GFML), in its capacity as responsible manager of the GARDA Capi
Slide 32: Garda Diversified Property Fund Full Year Results Presentation
For personal use only GARDA DIVERSIFIED PROPERTY FUND FULL YEAR RESULTS PRESENTATION | 29 AUGUST 2016
Garda Diversified Property Fund — FY2016 Earnings Presentation on 6ix