Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — HY15 Earnings Presentation
41 slides from Growthpoint Properties Australia's earnings presentation, Mar 4, 2015
Slide 1: Half year results presentation
For personal use only Half year results presentation FOR THE SIX MONTHS ENDED 31 DECEMBER 2014 Investor Lunches - Sydney / Melbourne - 4-5 March 2015 GROWTHPOINT PROPERTIES AUSTRALIA (ASX CODE: GOZ) Growthpoint Properties Australia Trust ARSN 120 121 002 | Growthpoint Properties Australia Limited AB
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only DISCLAIMER compliance with Article 11 of Regulation S-X of the rules and regulations Forward-looking statements including projections, indications or guidance on This presentation and its appendices (“Presentation”) is dated 16 February of the U.S. Securit
Slide 3: Contents and executive management team
CONTENTS EXECUTIVE MANAGEMENT TEAM For personal use only Highlights of HY15........................................ 4 APPENDICES TOP 5 OFFICE PROPERTIES Appendix A: Property Portfolio ................... 20 1 Charles St, Parramatta, NSW .................. 6 Appendix B: Detailed Financial Results ...
Slide 4: Highlights of HY15
HIGHLIGHTS OF HY15 For personal use only PROPERTY FINANCIAL 1 Significant leasing success 1 7.4% increase in NTA per stapled security (maintenance of 98% occupancy) 2 19.9% total security holder return for CY141 2 4.5% uplift in like-for-like property values 3 19.2% return on equity for CY142 3 CY14
Slide 5: Five largest office properties
For personal use only FIVE LARGEST OFFICE PROPERTIES/ GROUP OF PROPERTIES 1 CHARLES STREET, PARRAMATTA, NSW
Slide 6: SW1 Office Complex, South Brisbane, QLD
SW1 OFFICE COMPLEX, SOUTH BRISBANE, QLD For personal use only 1CB2, 42 MERIVALE ST, SOUTH BRISBANE, QLD COMBINED PROPERTY KEY METRICS 2.5 star NABERS rated, six-level, A-grade office building including AS AT 31 DECEMBER 2014 two levels of basement parking. $257.3m BOOK VALUE: $45.5m CAP RATE: 7.5% W
Slide 7: 1 Charles St, Parramatta, NSW
1 CHARLES ST, PARRAMATTA, NSW For personal use only • The property comprises a prominent A-grade PROPERTY KEY METRICS AS AT 31 DECEMBER 2014 commercial office building of 31,954m2 $255.0m and 444 car spaces consisting of two inter- connecting towers and was completed in 2003. • The building was purp
Slide 8: Building C, Gore Hill Technology Park, Artarmon, NSW
BUILDING C, GORE HILL TECHNOLOGY PARK, 219-247 PACIFIC HWY, ARTARMON, NSW For personal use only • A recently constructed, 5 star Green Star, PROPERTY KEY METRICS AS AT 31 DECEMBER 2014 A-grade office building, comprising two ground $100.0m and five upper office levels. • Acquired as a development fu
Slide 9: GE Buildings, 572-576 Swan St, Richmond, VIC
GE BUILDINGS, 572-576 SWAN ST, RICHMOND, VIC For personal use only GE BUILDING 2, 572-576 SWAN ST, RICHMOND, VIC COMBINED 3.5 star NABERS rated, four-level office building with three PROPERTY KEY METRICS AS AT 31 DECEMBER 2014 levels of basement parking. $129.2m BOOK VALUE: $76.0m CAP RATE: 8.00% WA
Slide 10: 333 Ann St, Brisbane, QLD
333 ANN ST, BRISBANE, QLD For personal use only • This is a 24-level A-grade office building in the PROPERTY KEY METRICS AS AT 31 DECEMBER 2014 Brisbane CBD, the property includes 92 car $95.0m spaces. • 3.5 star NABERS energy rating BOOK VALUE CY14 leasing deals TENANT START DATE TERM (yrs) ANNUAL
Slide 11: Five largest industrial properties
For personal use only FIVE LARGEST INDUSTRIAL PROPERTIES/ GROUP OF PROPERTIES 27-49 LENORE DRIVE, ERSKINE PARK, NSW
Slide 12: Woolworths Distribution Centres
WOOLWORTHS DISTRIBUTION CENTRES For personal use only Growthpoint owns six out of the 10 regional grocery COMBINED PROPERTY KEY WOOLWORTHS DISTRIBUTION METRICS CENTRES IN AUSTRALIA distribution centres in Woolworths’ grocery supply AS AT 31 DECEMBER 2014 chain accounting for an estimated 80% of Wool
Slide 13: Airport Properties
AIRPORT PROPERTIES 10KM 1 COMBINED PROPERTY KEY MELBOURNE AIRPORT, VIC 45-55 SOUTH CENTRE RD For personal use only 1 BOOK VALUE: $8.8m CAP RATE: 9.75% METRICS MELBOURNE AS AT 31 DECEMBER 2014 40 ANNANDALE RD WALE: 2.2yrs LETTABLE AREA: 14,082m2 $144.4m BOOK VALUE: $38.5m CAP RATE: 8.75% SITE AREA: 2
Slide 14: Linfox Properties, Erskine Park, NSW
LINFOX PROPERTIES, ERSKINE PARK, NSW For personal use only 1 ERSKINE PARK, NSW COMBINED PROPERTY KEY METRICS AS AT 31 DECEMBER 2014 27-49 LENORE DR Purpose built pharmaceutical $122.4m warehouse facility. BOOK VALUE: $53.9m CAP RATE: 7.00% WALE: 8.7yrs LETTABLE AREA: 29,476m2 SITE AREA: 71,410m2 BOO
Slide 15: 9-11 Drake Blvd, Altona, VIC
9-11 DRAKE BLVD, ALTONA, VIC For personal use only • Three adjoining distribution warehouses each PROPERTY KEY METRICS AS AT 31 DECEMBER 2014 with separate street access, mezzanine office, $27.0m Early Suppression Fast Response sprinklers and environmentally sustainable design features. • Acquired f
Slide 16: 213-215 Robinsons Rd, Ravenhall, VIC
213-215 ROBINSONS RD, RAVENHALL, VIC For personal use only • A high-spec distribution and production facility PROPERTY KEY METRICS AS AT 31 DECEMBER 2014 attached to a two level high-spec office. • Acquired for $23.2 million in October 2013 $26.1m BOOK VALUE 7.00% CAP RATE 10.5yrs WALE 213-215 ROBIN
Slide 17: Conclusion
For personal use only CONCLUSION GE BUILDING 2, 572-576 SWAN STREET, RICHMOND, VIC
Slide 18: Focus for the period ahead
FOCUS FOR THE PERIOD AHEAD For personal use only PROPERTY PORTFOLIO • Focus on leasing • Consider potential sales to enhance portfolio • Development opportunities within existing portfolio being assessed FINANCIAL MANAGEMENT • Debt capital markets issue • Utilise historically cheap debt • Focus on k
Slide 19: Appendices
For personal use only APPENDICES 120-132 ATLANTIC DRIVE, KEYSBOROUGH, VIC
Slide 20: A.1 Key metrics
APPENDIX A: PROPERTY PORTFOLIO A.1. KEY METRICS AS AT 31 DECEMBER 2014 For personal use only INDUSTRIAL OFFICE1 TOTAL NO. OF PROPERTIES 34 17 51 TOTAL / AVERAGE VALUE $1,079.0m / $31.7m $1,154.6m / $67.9m $2,233.6m / $43.8m % OF PORTFOLIO VALUE 48% 52% 100% OCCUPANCY 99% 98% 98% LIKE FOR LIKE VALUE
Slide 21: A.2 Revaluations
APPENDIX A: PROPERTY PORTFOLIO A.2. REVALUATIONS For personal use only • Property portfolio valued at $2.2 billion following 211 Wellington Road, Mulgrave acquisition and 42-44 Garden Street, Kilsyth disposal • Value increase attributable to revaluations, on a like-for-like basis (excluding the rece
Slide 22: A.3 Leasing
APPENDIX A: PROPERTY PORTFOLIO A.3. LEASING For personal use only TERM ANNUAL RENT AREA CAR PARKS PROPERTY STATE SECTOR TENANT START DATE (yrs) INCREASES (m2) (No.) 1231-1241 Sandgate Road, Nundah QLD Office Zambrero Property Group Q1, FY15 7.0 Fixed 3.50% 70 – CB1, 22 Cordelia Street, South Brisban
Slide 23: A.4 Office acquisition
APPENDIX A: PROPERTY PORTFOLIO A.4. OFFICE ACQUISITION For personal use only 211 WELLINGTON RD, PROPERTY KEY METRICS MULGRAVE, VIC • Seven level office building 22 kilometres south $62.6m ACQUISITION AND east of Melbourne CONSTRUCTION COSTS & SUPPORTED BY • 12,718m2 of lettable area plus 650 car par
Slide 24: A.5 Case study: acquisition of CB1 and CB2
APPENDIX A: PROPERTY PORTFOLIO A.5. CASE STUDY: ACQUISITION OF CB1 AND CB2, SOUTH BRISBANE, QLD For personal use only Growthpoint acquired the CB1 and CB2 towers in early 2012 with a strategy to: 1 Extend leases of upcoming expiries 2 Increase rents to market rates 3 Improve asset value through amen
Slide 25: A.6 Diversity of income and assets
APPENDIX A: PROPERTY PORTFOLIO A.6. DIVERSITY OF INCOME AND ASSETS For personal use only SECTOR DIVERSITY (%) KEY METRICS BY MARKET VALUE, AS AT 31 DECEMBER 2014 AS AT 31 DECEMBER 2014 INDUSTRIAL OFFICE1 TOTAL TOTAL / AVERAGE VALUE $1,079.0m / $31.7m $1,154.6m / $67.9m $2,233.6m / $43.8m INDUSTRIAL
Slide 26: A.7 Market overview - Industrial
APPENDIX A: PROPERTY PORTFOLIO A.7. MARKET OVERVIEW - INDUSTRIAL1 For personal use only GROSS TAKE-UP BY INDUSTRY SECTOR IN 2014 (%) NATIONAL INDUSTRIAL SUPPLY PIPELINE *AS AT 4Q14 TRANSPORT & STORAGE 34% SQM (‘000s) MANUFACTURING 24% RETAIL TRADE 16% 3,000 WHOLESALE TRADE 14% 2,500 OTHER 8% PROPERT
Slide 27: A.8 Market overview - Office
APPENDIX A: PROPERTY PORTFOLIO OFFICE VACANCY RATES AS AT 4Q14 A.8. MARKET OVERVIEW - OFFICE1 30% For personal use only 25% 20% Four of the six markets have experienced the worst of 15% the downturn and are now GROWTH RENTS 10% SLOWING FALLING expected to record positive 5% rental growth over the sh
Slide 28: B.1 Financial results
APPENDIX B: DETAILED FINANCIAL RESULTS B.1. FINANCIAL RESULTS For personal use only HY15 HY14 CHANGE % CHANGE STATUTORY ACCOUNTING PROFIT ($'000) 141,824 63,492 78,332 123.4 STATUTORY ACCOUNTING PROFIT PER SECURITY (¢) 25.6 15.0 10.6 70.7 DISTRIBUTABLE INCOME ($’000) 56,447 42,049 14,398 34.2 DISTRI
Slide 29: B.2 Movements in net tangible assets
APPENDIX B: DETAILED FINANCIAL RESULTS B.2. MOVEMENTS IN NET TANGIBLE ASSETS For personal use only • 7.4% increase in NTA per stapled security over HY15 MOVEMENTS IN NTA PER STAPLED SECURITY $2.36 $2.34 $2.32 $2.30 $2.28 $2.26 $2.24 $2.22 $2.20 $2.18 $2.16 $2.14 30 JUNE 2014 Property Swap Retained R
Slide 30: B.3 Debt management - gearing
APPENDIX B: DETAILED FINANCIAL RESULTS B.3. DEBT MANAGEMENT - GEARING For personal use only REDUCTION IN GEARING AND COST OF DEBT AS AT 31 DECEMBER 2014 65% 8.5% BALANCE SHEET GEARING 60% 8.0% ALL-IN COST OF DEBT 55% 7.5% 50% 7.0% 45% 6.5% 40% 6.0% 35% 5.5% 30% 5.0% 25% 4.5% JUN 2010 JUN 2011 JUN 20
Slide 31: B.4 Debt management - interest rate hedging
APPENDIX B: DETAILED FINANCIAL RESULTS B.4. DEBT MANAGEMENT - INTEREST RATE HEDGING For personal use only INTEREST RATE HEDGING $200m $180m $160m $140m $120m $100m $80m $60m $40m $20m 0 Weighted KEY DETAILS average Time to maturity 1.8yrs 2.5yrs 3.5yrs 3.9yrs 4.1yrs 4.1yrs 4.8yrs 4.9yrs 3.7yrs Fixed
Slide 32: B.5 Operating expenses
APPENDIX B: DETAILED FINANCIAL RESULTS B.5. OPERATING EXPENSES For personal use only OPERATING EXPENSES CY14 CY13 Total operating expenses ($’000) 8,6771 7,434 Average gross asset value ($’000) 2,011,095 1,712,474 OPERATING EXPENSES TO AVERAGE GROSS ASSETS (%) 0.43% 0.43% 1. This figure excludes $39
Slide 33: C.1 Securityholders, distributions and security price
APPENDIX C: PERFORMANCE GOZ SECURITYHOLDERS* AS AT 31 DECEMBER 2014 C.1. SECURITYHOLDERS, DISTRIBUTIONS For personal use only GRT 64.5% & SECURITY PRICE INSTITUTIONAL 28.3% RETAIL 6.5% DIRECTORS & EMPLOYEES 0.7% DISTRIBUTIONS SECURITY PRICE PER STAPLED SECURITY AS AT 31 DECEMBER 22¢ $2.80 20¢ $2.60
Slide 34: C.2 Comparative returns
APPENDIX C: PERFORMANCE C.2. COMPARATIVE RETURNS For personal use only TOTAL RETURN COMPARISON TOTAL RETURN COMPARISON RELATIVE FORECAST OVER ONE YEAR OVER FIVE YEARS INCOME YIELDS TO 31 DECEMBER 20141 PER ANNUM, TO 31 DECEMBER 20141 TO 30 JUNE 2015 30% 30% 10% 25% 25% 8% 20% 20% 6% 15% 15% 4% 10% 1
Slide 35: D: Growthpoint Properties Limited - South Africa (GRT)
APPENDIX D: GROWTHPOINT PROPERTIES LIMITED - SOUTH AFRICA (GRT)1 For personal use only • GRT owns 64.5% of the securities of GOZ (at 31 December KEY FACTS 2014) and is its major securityholder LISTING GRT is listed on the Johannesburg Stock Exchange (JSE) • GRT first invested in GOZ in August 2009.
Slide 36: E: 2015 Securityholder calendar
APPENDIX E: 2015 SECURITYHOLDER For personal use only CALENDAR* 16 February 27 February 3 March 17 August Results for the half year Distribution paid for Half year report sent to Results for the year ended 31 December the half year ended Securityholders ended 30 June 2015 2014 announced to 31 Decemb
Slide 37: F.1 Reconciliation from statutory profit to distributable income
APPENDIX F: DISTRIBUTABLE INCOME F.1. RECONCILIATION FROM STATUTORY PROFIT For personal use only TO DISTRIBUTABLE INCOME HY15 HY14 CHANGE CHANGE $’000 $’000 $’000 % PROFIT AFTER TAX 141,824 63,492 78,332 123.4 LESS NON-DISTRIBUTABLE ITEMS: - STRAIGHT LINE ADJUSTMENT TO PROPERTY REVENUE (2,047) (2,85
Slide 38: F.2 Components of distributable income
APPENDIX F: DISTRIBUTABLE INCOME F.2. COMPONENTS OF DISTRIBUTABLE INCOME For personal use only HY15 HY14 CHANGE CHANGE $’000 $’000 $’000 % Property income 98,077 83,764 14,313 17.1 Property expenses (12,723) (11,348) (1,375) 12.1 NET PROPERTY INCOME 85,354 72,416 12,938 17.9 Interest income 425 457
Slide 39: G: Financial position
APPENDIX G: FINANCIAL POSITION For personal use only AS AT 31 DEC 2014 AS AT 30 JUN 2014 ($’000) ($’000) ASSETS Cash and cash equivalents 28,251 21,321 Investment properties 2,177,950 2,075,893 Other assets 20,331 31,565 TOTAL ASSETS 2,226,532 2,128,779 LIABILITIES Borrowings 816,225 871,214 Distrib
Slide 40: Glossary
GLOSSARY For personal use only A-REIT Australian Real Estate Investment Trust GOZ/Group/ Growthpoint Properties Australia comprising the Company, the Trust and Growthpoint their controlled entities ASX Australian Securities Exchange Growthpoint SA/GRT Growthpoint Properties Limited of South Africa (
Slide 41: Thank you
For more information contact us at: Email: info@growthpoint.com.au For personal use only Investor services line: 1800 260 453 www.growthpoint.com.au Growthpoint Properties Australia Level 22, 357 Collins Street Melbourne VIC 3000 THANK YOU GROWTHPOINT 70 DISTRIBUTION ST, PROPERTIES LARAPINTA, QLDAUS
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