Gpt Group · ASX:GPT
Gpt — The GPT Group — Q1 2013 Earnings Presentation
26 slides from Gpt's earnings presentation, Apr 30, 2013
Slide 1: GPT 2013 March Quarter Result Update
For personal use only GPT 2013 MARCH QUARTER <<<<<<<< RESULT UPDATE 11
Slide 2: March Quarter Highlights
MARCH QUARTER HIGHLIGHTS A positive start to 2013 For personal use only Low gearing and Continued high US$250m raised from extended debt occupancy inaugural USPP maturity Completed $300 million 161 Castlereagh Street reaches redevelopment of Highpoint Practical Completion GWOF acquires Distribution
Slide 3: Investment Management: Portfolio Summary
INVESTMENT MANAGEMENT Quality underpins strong fundamentals For personal use only PORTFOLIO SUMMARY Portfolio WALE Occupancy WACR Size(1) Retail $4.87bn 4.4 years 99.7% 6.07% Office $2.78bn 5.5 years 95.7% 6.83% Logistics & Business Parks $0.99bn 5.6 years 98.5% 8.30% Total $8.64bn 4.9 years 98.3% 6
Slide 4: Retail: Occupancy continues to increase
RETAIL Occupancy continues to increase For personal use only 31 Mar 2013 31 Dec 2012 Comparable total centre sales growth(1) 0.9% 1.3% Comparable specialty sales growth(1) 1.3% 1.5% Specialty sales psm(1) $8,975 $8,964 Specialty occupancy costs(1) 18.0% 17.9% Occupancy rate 99.7% 99.5% Weighted aver
Slide 5: Retail: Cautious consumer environment continues
RETAIL Cautious consumer environment continues For personal use only Comparable Change in Annual Retail Sales Growth by Category 10% 9.0% 0.9% Total 8% 7.1% Centre 6% 5.1% 4.0% 4% 1.3% 1.8% 2.2% Specialty 2% 0.9% 1.3% 0.1% 0% -2% -1.5% -1.5% -4% -2.6% -2.2% -2.4% -3.7% -6% -8% -7.0% Food Catering DD
Slide 6: Retail: Market outlook subdued, but growth drivers improving
RETAIL Market outlook subdued, but growth drivers improving For personal use only Supportive monetary policy and low unemployment Stable economic growth anticipated Cash Rate and Unemployment(1) IMF Forecast: Australian GDP Growth(2) 15% 5% Cash Rate (LHS) Unemployment Rate Forecast 4% Forecast Annu
Slide 7: Retail Development: Highpoint Update
RETAIL DEVELOPMENT Dominant regional centres will continue to outperform For personal use only HIGHPOINT UPDATE Opened on schedule on 14 March 2013, fully leased Several International retailers have been secured (such as Top Shop, Zara, Samsung, Gap and Apple) Trading performance: - Customer v
Slide 8: Office: Metrics remain robust in first quarter
OFFICE Metrics remain robust in first quarter For personal use only 31 Mar 2013 31 Dec 2012 Occupancy (including terms agreed) 95.7% 95.8% Weighted average lease expiry 5.5 years 5.4 years Leases signed 22,925 sqm 135,646 sqm(1) Terms agreed at period end 14,430 sqm 36,409 sqm(1) Weighted average ca
Slide 9: Office: Strong focus on tenant retention
OFFICE Strong focus on tenant retention For personal use only 22,925 sqm leased during the quarter with 14,430 sqm at HOA Continued focus on future expiries LEASING TRANSACTIONS Asset Status Tenant Sqm Term 2 Park Street Signed Lease Citigroup 18,470 sqm 10 years Australia Square Signed Leases V
Slide 10: Office: Fundamentals remain weak
OFFICE Fundamentals remain weak For personal use only Weak demand across most markets resulting in higher vacancy and incentives Sydney: Improved activity in smaller space requirements (<1,000 sqm) Melbourne: Weak demand and excess supply with significant sublease space Brisbane: Significant
Slide 11: Office: Developments on track
OFFICE Developments on track For personal use only 161 CASTLEREAGH STREET (ANZ TOWER) Tower reached practical completion in March 96% leased to ANZ, Herbert Smith Freehills and Boston Consulting Group Due for completion in mid 2013 6.7% yield 150 COLLINS STREET Scheduled for completion in
Slide 12: Logistics & Business Parks: Increased occupancy and long WALE
LOGISTICS & BUSINESS PARKS Increased occupancy and long WALE maintained For personal use only 31 Mar 2012 31 Dec 2012 Occupancy 98.5% 98.2% Weighted average lease expiry 5.6 years 5.8 years Leases signed 1,993 sqm 55,696 sqm(1) Weighted average capitalisation rate 8.30% 8.30% Logistics and Business
Slide 13: Logistics & Business Parks: Market conditions remain positive
LOGISTICS & BUSINESS PARKS Market conditions remain positive For personal use only Manageable forecast supply with limited speculative activity Vacancy low across most markets Good enquiry in prelease market, long lead time to execution INDUSTRIAL MARKET Industrial Current Prime Prime Net Curr
Slide 14: Funds Management: Continuing growth for existing funds
FUNDS MANAGEMENT Continuing growth for existing funds For personal use only GWOF GWSCF $14.3m valuation uplift $8.3m valuation uplift Leading performance Short term performance continues over longer term strong post write off of 161 Castlereagh Street acquisition costs reached practical co
Slide 15: Funds Management: $6.8 billion of FUM
FUNDS MANAGEMENT $6.8 billion of FUM For personal use only KEY FUND METRICS GWOF GWSCF 31 Mar 31 Dec 31 Mar 31 Dec 2013(1) 2012 2013 2012 GPT Ownership Interest (%) 20.2% 20.4% 23.2% 23.3% Number of assets 14 14 10 10 AUM (Funds under Management) $3,757m $3,665m $3,044m $2,962m Gearing 8.4% 7.3% 28.
Slide 16: Capital Management: Low gearing and long debt term
CAPITAL MANAGEMENT Low gearing and long debt term For personal use only GPT BALANCE SHEET 31 Mar 2013 31 Dec 2012 Total borrowings ($m) 2,190m 2,144m Gearing (%)(1) 21.7% 21.7% Weighted average cost of debt 5.08% 5.08% Weighted average term to maturity 6.3 years 5.4 years CREDIT METRICS 31 Mar 2013
Slide 17: Capital Management: Continued diversification of funding sources
CAPITAL MANAGEMENT Continued diversification of funding sources For personal use only US$250m (A$243m) inaugural USPP issue of 12 and 15 year notes - Pricing represents a margin of 170bps over BBSW Follows HKD800m (A$100m) 15 year bonds issued in January Sources of debt Debt maturity profile 4%
Slide 18: 2013 Group Strategic Priorities
2013 GROUP STRATEGIC PRIORITIES Four priorities to optimise and grow For personal use only Streamlining processes and maintaining expense discipline Optimise GPT Minimising cost of funding OPTIMISE Equip employees for Reinforcing GPT’s culture high Accelerating development of high potential
Slide 19: Guidance for 2013
GUIDANCE FOR 2013 On track to achieve target For personal use only Targeting EPS(1) growth of at least 5% for 2013 Payout ratio of 80% of ROI (1) EPS defined as Realised Operating Income (ROI) per ordinary security 19 19 19
Slide 20: Appendices
For personal use only APPENDICES<<<<<<<< 2020
Slide 21: Capital Management: Hedging profile
CAPITAL MANAGEMENT Hedging profile For personal use only 3,500 4.18% 4.22% 3,000 4.02% 4.08% 4.05% 4.04% 4.04% 3.99% 3.96% 3.95% 3.94% 2,500 2,000 $’M 1,500 1,000 500 0 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Forecast Debt Interest rate swaps Fixed rate debt WA f
Slide 22: Retail: Specialty monthly sales growth
RETAIL Specialty monthly sales growth For personal use only 8% 6.0% 6% 4.0% 4.1% 4% 3.6% 2% 1.7% 1.0% 1.0% 0.6% 0% 0.8% -0.3% -2% -1.5% -2.9% -4% -3.6% -6% May-12 Nov-12 Jan-13 Jul-12 Oct-12 Mar-13 Mar-12 Sep-12 Dec-12 Jun-12 Feb-13 Aug-12 Apr-12 Note: Includes GPT and GWSCF assets and excludes deve
Slide 23: Retail: Retail portfolio sales performance
RETAIL Retail portfolio sales performance For personal use only Moving Annual Turnover Occupancy Costs (%) Comparable Comparable Centre MAT Specialty Specialty Centre Name Owner Centre MAT Specialty MAT Centre (%) $PSM MAT $PSM (%) Growth (%) Growth (%) Carlingford Court GWSCF 6,672 -0.9% 8,761 -0.7
Slide 24: Retail: Valuation summary
RETAIL Valuation summary For personal use only As at 31 March 2013 As at 31 Dec 2012 Interest Valuer Valuation Cap Fair Cap Rate Rate Value GWSCF Portfolio Forestway 100% CBRE $83.6m 7.50% $81.5m 7.50% Macarthur Square 50% CBRE $401.3m 6.25% $394.2m 6.25% 24 24 24
Slide 25: Office: Valuation summary
OFFICE Valuation summary For personal use only As at 31 March 2013 As at 31 Dec 2012 Interest Valuer Valuation Cap Fair Value Cap Rate Rate GPT Portfolio One One One Eagle St 33% $220.0m 6.50% $208.6m 6.63% GWOF Portfolio One One One Eagle St 33% $220.0m 6.50% $208.0m 6.63% Darling Park 1 & 2 50% $5
Slide 26: Disclaimer
DISCLAIMER For personal use only The information provided in this presentation has been prepared by The GPT Group comprising GPT RE Limited (ACN 107 426 504) AFSL (286511), as responsible entity of the General Property Trust, and GPT Management Holdings Limited (ACN 113 510 188). The information pro