Growthpoint Properties Australia · ASX:GOZ

Growthpoint Properties Australia — FY2009 Earnings Presentation

26 slides from Growthpoint Properties Australia's earnings presentation, Aug 25, 2009

  1. Slide 1: Growthpoint Australia Annual Results, Year Ended 30 June 2009

    1 For personal use only GROWTHPOINT AUSTRALIA (ASX Code: GOZ) ANNUAL RESULTS Financial Year Ended 30 June 2009

  2. Slide 2: Agenda

    AGENDA 2 For personal use only INTRODUCTION AND SUMMARY FINANCIAL REVIEW OPERATIONAL OVERVIEW ACQUISITIONS AND DEVELOPMENTS PROSPECTS QUESTIONS

  3. Slide 3: Introduction and Summary

    3 For personal use only INTRODUCTION AND SUMMARY Perth Airport, 2 Horrie Miller Drive

  4. Slide 4: Growthpoint Australia in Summary

    GROWTHPOINT AUSTRALIA IN SUMMARY 4  Growthpoint Properties Australia (ASX Code: GOZ) is an ASX listed stapled For personal use only entity that invests in quality income producing property in Australia  Major security holder is Growthpoint Properties Limited of South Africa (JSE Code: GRT). GRT is

  5. Slide 5: Growthpoint Australia in Summary (cont'd)

    GROWTHPOINT AUSTRALIA IN SUMMARY (cont’d) 5  A$144 million renounceable rights issue, underwritten by GRT is to be For personal use only completed by late September  Quality property portfolio, to be diversified to office, retail and industrial property markets over time Office Major tenant 23 ind

  6. Slide 6: Summary of Results

    SUMMARY OF RESULTS 6 Office For personal use only Profit from $14.9 m Higher interest cost and R12,4 billion operations 2008: $18.2 m management fees A$1,9 billion Office Net ($210.1) m AIFRS, non-cash R12,4 billion loss 2008: $35.5 m adjustments (below) A$1,9 billion Major (non-cash)items Office R1

  7. Slide 7: Total Return Performance

    TOTAL RETURN PERFORMANCE 7 Total returns to 30 June 2009 For personal use only -42.1% S&P/ASX 300 Prop Acc. Index -11.8% 16.2% -50.8% UBS Commercial 300 -25.0% 9.6% -24.1% UBS Retail 300 -6.1% 15.1% -85.5% UBS Industrial 300 -41.9% 23.8% -41.7% Growthpoint Australia -1.5% 24.1% -100.0% -80.0% -60.0%

  8. Slide 8: Financial Review

    8 For personal use only FINANCIAL REVIEW Broadmeadows 120 Northcorp Boulevard

  9. Slide 9: Income Statement (Extracts)

    INCOME STATEMTENT (Extracts) 9 YE June YE June HY Dec For personal use only Increase/ ITEM 2009 2008 2008 (decrease) $ million $ million $ million Net property income 55.0 52.5 2.5 27.5 Net interest (37.4) (31.9) (5.5) 16.8) Management fee (1.9) (1.4) (0.5) (1.0) Funds expenses (0.8) (0.9) 0.1 (0.5)

  10. Slide 10: Balance Sheet (Extracts)

    BALANCE SHEET (Extracts) 10 As at June As at June As at Dec 2009 2008 Increase/ ITEM 2008 For personal use only (decrease) $ million $ million $ million Current assets Cash and cash equivalents 7 17 (10) 28 Other assets 3 11 (8) 1 Total current assets 10 28 (18) 29 Non-current assets Investment prop

  11. Slide 11: Debt Overview

    DEBT OVERVIEW 11 For personal use only ITEM $ million LVR ** Beginning of Period – 30 June 2008 517 63% Change During Period (11) Closing Balance – 30 June 2009 506 76% Debt repayment - Placement (45) - Rights Issue (131) Est. closing balance * 330 50% * Post recapitalisation ** Based upon book valu

  12. Slide 12: Debt Facility

    DEBT FACILITY 12  New facility (post balance date) - NAB and Westpac to 30 June 2012 For personal use only  Facility limit - $480 million, with options to upsize  Key covenants:  Loan to value ratio (LVR)  Default LVR 70% to 31 December 2010, 65% thereafter  Operating LVR 60%: between 60% to 6

  13. Slide 13: Interest Rate Hedging

    INTEREST RATE HEDGING 13  Fund policy to remain hedged 75% of debt For personal use only  As at 30 June 2009, interest rate swaps outstanding were $512.7 million, covering 101% of current debt, with an average maturity of 3.6 years and average cost of 6.24% per annum excluding margin  Mark to mar

  14. Slide 14: Operational Overview

    14 For personal use only OPERATIONAL OVERVIEW Tullamarnie, 60 Annandale Road

  15. Slide 15: Operational Overview

    OPERATIONAL OVERVIEW 15 GLA VACANCY For personal use only VACANCY % m2 m2 Balance at 1 July 2008 687,106 - 0% Gross lettable area (GLA) adjustments - - Disposals (24,184) - 0% Acquisitions (existing buildings) - - Developments and extensions 26,527 - 0% Lease expired in the period - - Renewals of ex

  16. Slide 16: Total Lease Expiry Profile

    TOTAL LEASE EXPIRY PROFILE 16 GOZ Lease Expiry Profile (by Current Rental) For personal use only % 80% 68% 70% 60% 50% 40% 30% 20% 7% 6% 6% 10% 3% 3% 4% 4% 0% 0% 0% 0% 0 1 2 3 4 5 6 7 8 9 r fte 1 1 1 1 1 1 1 1 1 1 n- n- n- n- n- n- n- n- n- n- ea Ju Ju Ju Ju Ju Ju Ju Ju Ju Ju er Th

  17. Slide 17: Sectoral Analysis

    SECTORAL ANALYSIS* 17 For personal use only Geographic Value diversity 2% 11% 14% 49% Industrial VIC QLD 100% WA 24% SA NSW * Based upon property value

  18. Slide 18: Property Valuations

    PROPERTY VALUATIONS 18 For personal use only ITEM $ million Cap rate Opening balance – 30 June 2008 820 6.8% Add Capital Expenditure 45 7.3% Less Property Sales (24) 8.7% Loss of Sale (2) Revaluation of Property (167) Closing balance – 30 June 2009 662 8.9%  Valuation as at 30 June 2009 at average

  19. Slide 19: Tenant Analysis

    TENANT ANALYSIS* 19 For personal use only Tenant Tenant Rating ** breakdown 6% 6% AAA 12% Woolworths 26% A- Government Not rated Listed domestic 8% Private domestic Listed international 6% 68% 68% * Based upon percentage of rent income as at 30 June 2009 ** Star Track Express is 50% owned by the Com

  20. Slide 20: Acquisitions, Disposals and Developments

    20 For personal use only ACQUISTIONS, DISPOSALS AND DEVELOPMENTS Tullamarine, 75 Annandale Road

  21. Slide 21: Acquisitions and Disposals

    ACQUISITIONS AND DISPOSALS 21 SALE For personal use only INITIAL PROPERTY DATE PRICE YIELD $m (1) Acquisitions Nil Disposals 91 Transport Avenue, Adelaide Airport, SA Dec 2008 $7.6 8.0% 50-52 Koornang Road, Scoresby, VIC Jan 2009 $5.5 9.5% 26 William Angliss Drive, Laverton, VIC May 2009 $3.6 8.0% 8

  22. Slide 22: Developments Completed and in Progress

    DEVELOPMENTS COMPLETED AND IN PROGRESS 22 Spent to For personal use only Total 30 June Expected ITEM cost Tenant m² 2009 yield $ million $ million 2 Horrie Miller Drive, Perth Airport 32 20 Woolworths 15,549 7.0% Star Track 40 Annandale Road, Tullamarine 8 7 10,939 9.0% Express Total 40 27 26,488 7.

  23. Slide 23: Prospects

    23 For personal use only PROSPECTS Brisbane Airport, 3 Viola Place

  24. Slide 24: Operating Environment

    OPERATING ENVIRNMENT 24  A-REITs recapitalised - $17.6 billion raised during 2008 and 2009, For personal use only significantly reducing gearing  Property transaction volumes increasing, with greater liquidity in markets  Major challenges during next 12 – 24 months  Debt markets remain constrain

  25. Slide 25: Outlook

    OUTLOOK 25 For personal use only  Recapitalisation and restructure provides a stable financial platform. Rights issue of $144.4 million is to be completed by late September  Fund will be able to review accretive acquisition opportunities in office, retail and industrial property sectors, diversify

  26. Slide 26: Thank You

    26 For personal use only THANK YOU Wodonga 28 Bilston Drive, Barnawatha

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