GARDA Property Group · ASX:GDF
GARDA Property — FY2022 Earnings Presentation
35 slides from GARDA Property's earnings presentation, Aug 1, 2022
Slide 1: Garda Property Group Full Year Results Presentation 30 June 2022
For personal use only GARDA PROPERTY GROUP (ASX: GDF) FULL YEAR RESULTS PRESENTATION | 30 JUNE 2022
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation (Presentation) has been prepared on behalf of GARDA Property Group (GDF or Group or GARDA), comprising GARDA Holdings Limited (GHL) and its controlled entities and GARDA Capital Limited (ACN 095 039 366) (AFSL 246714) (GCL) as responsible entity of
Slide 3: Group Overview: Financial Metrics
GROUP OVERVIEW FINANCIAL METRICS For personal use only Balance Sheet Return Profile $354 Million1 25.1% MARKET CAPITALISATION FY22 TOTAL SHAREHOLDER RETURN $2.05 46.3% NTA PER SECURITY FY22 RETURN ON EQUITY 35.6% 4.6%2 GEARING CURRENT DPU YIELD 81.6% 90.2% TAX ADVANTAGED INCOME FY22 PAYOUT RATIO 1.
Slide 4: Group Overview: Property Metrics
GROUP OVERVIEW PROPERTY METRICS For personal use only Real Estate Platform Portfolio Metrics $650.7 Million1 5.7 Years PORTFOLIO VALUE WALE 17 90.7% PROPERTIES PORTFOLIO OCCUPANCY ~142,000m² 5.05% PORTFOLIO NLA PORTFOLIO CAP RATE (WACR) ~160,000m² 3.6% DEVELOPMENT PIPELINE FIXED ANNUAL RENT INCREASE
Slide 5: Contents
For personal use only CONTENTS FY22 HIGHLIGHTS 6 Property Performance | NTA | ASX Performance | Leasing INDUSTRIAL DEVELOPMENT 13 Capital Allocation | Timing PROPERTY PORTFOLIO 25 Metrics | Portfolio Overview FINANCE 28 Capital Management | Guidance | FFO | Income Statement | Balance Sheet GLOSSARY
Slide 6: FY22 Highlights
For personal use only FY22 HIGHLIGHTS 41 Bivouac Place, Wacol
Slide 7: Highlights: Key Outcomes for the Year Ended June 2022
HIGHLIGHTS KEY OUTCOMES FOR THE YEAR ENDED 30 JUNE 2022 AND POST BALANCE DATE EVENTS For personal use only Property revaluations and transactions have driven a 29% increase in portfolio value, reflected in NTA increasing $0.60 to $2.05 per security. Significant industrial development project leasing
Slide 8: Property Performance
PROPERTY PERFORMANCE 31.1% INCREASE IN PORTFOLIO PROPERTY VALUE THROUGHOUT FY22 For personal use only ▪ GARDA’s total property portfolio value has increased $154.5 million, or 31.1%, $154.5m 5.05% throughout FY22 driven largely by positive property revaluations. FY22 VALUE INCREASE CAPITALISATION RA
Slide 9: Valuation Overview
VALUATION OVERVIEW For personal use only 4.49% 5.54% INDUSTRIAL CAP RATE OFFICE CAP RATE Valuation Valuation Cap Rate Occupancy WALE Property Sector Date ($m) (%) % (years) Acacia Ridge, 69 Peterkin St Industrial Apr 2022 23.0 4.00% 100% 6.6 Berrinba, 1-9 Kellar St Industrial Apr 2022 14.0 4.50% 100
Slide 10: Net Tangible Assets
NET TANGIBLE ASSETS 41.4% INCREASE IN NTA PER SECURITY TO $2.05 For personal use only CONSISTENT NTA PER SECURITY VALUE GROWTH ACROSS MULTIPLE VALUATION PROGRAMS. April-June 2022 October 2021 10
Slide 11: Security Price Performance
SECURITY PRICE PERFORMANCE 39% OUTPERFORMANCE AGAINST THE ASX200 A-REIT INDEX THROUGHOUT FY2022. For personal use only GDF ASX SECURITY PRICE HAS APPRECIATED TO $1.535 PER SECURITY OVER FY22, REPRESENTING TSR OF 25.1%. GDF.ASX XPJ.ASX 150% 140% 130% 120% 110% 39% Outperformance 100% 90% 80% 01 Jul 2
Slide 12: Leasing
LEASING STRONG OUTCOMES IN BRISBANE INDUSTRIAL DEVELOPMENTS AND MELBOURNE CITY-FRINGE OFFICE For personal use only Project Leasing 24,410m² ▪ Both Richlands and Pinnacle West, Wacol (Building A and B) are fully leased, representing 24,410m² PROJECT LEASING of built form industrial NLA. ▪ Richlands –
Slide 13: Industrial Development
For personal use only INDUSTRIAL DEVELOPMENT
Slide 14: 'Build to Own' Industrial Development Pipeline
‘BUILD TO OWN’ INDUSTRIAL DEVELOPMENT PIPELINE For personal use only DEVELOPMENT PIPELINE OF ~160,000M² OF HIGH QUALITY BRISBANE INDUSTRIAL ASSETS Morningside ▪ Facility extension 5,700 Acacia Ridge Stage 1B 4,575 Wacol, Pinnacle East ▪ DA approved 13,745 1 North Lakes ▪ DA approved – earth works 97
Slide 15: Development Pipeline: Capital Allocation and Status
‘BUILD TO OWN’ INDUSTRIAL DEVELOPMENT PIPELINE CAPITAL ALLOCATION AND STATUS For personal use only 2022 2023 Jun 22 Sep 22 Dec 22 Jun 23 Sep 23 Acacia Ridge (Stage 2) ▪ Construction of 15,000m² industrial facility at a contracted cost of $17.9m ▪ Completion expected April 2023 12 months - $18 millio
Slide 16: 38-56 Peterkin Street (Stage 2), Acacia Ridge
38-56 PETERKIN STREET (STAGE 2) ACACIA RIDGE, QUEENSLAND For personal use only ASSET SUMMARY LEASING, CONSTRUCTION AND VALUE OUTCOMES Land Area (m²) 34,270 ▪ Construction at stage 1 (69 Peterkin Street) completed in January 2022 and is Lettable Area (m²) 15,000 fully leased until January 2029 (7 yea
Slide 17: 38-56 Peterkin Street (Stage 2): Valuation Movement
38-56 PETERKIN STREET (STAGE 2) ACACIA RIDGE, QUEENSLAND For personal use only ACACIA RIDGE (STAGE 2) SHOULD DELIVER $1.9 MILLION IN PROPERTY INCOME PER ANNUM WHEN FULLY LEASED 1 VALUATION MOVEMENT THROUGH DEVELOPMENT ($ million) NLA: 15,000m2 1. Rent estimated as $125/m² 2. ‘On completion’ value is
Slide 18: Progress Road (Pinnacle West), Wacol
498 PROGRESS ROAD (PINNACLE WEST) WACOL, QUEENSLAND For personal use only ASSET SUMMARY Land Area (m²) 41,750 LEASING, CONSTRUCTION AND VALUE OUTCOMES Building C Lettable Area (m²) 6,000 ▪ Construction of Building A (3,360m²) and Building B (8,050m²) has commenced Building B Lettable Area Under Deve
Slide 19: Progress Road (Pinnacle West): Valuation Movement
498 PROGRESS ROAD (PINNACLE WEST) WACOL, QUEENSLAND For personal use only BUILDINGS A & B WILL DELIVER AN ADDITIONAL $1.5 MILLION IN PROPERTY INCOME PER ANNUM FROM FEBRUARY 2023. VALUATION MOVEMENT THROUGH DEVELOPMENT ($ million) NLA: 17,410m2 1. Building B has been contracted at $10.3 million and B
Slide 20: 56-72 Bandara Street, Richlands
56-72 BANDARA STREET RICHLANDS, QUEENSLAND For personal use only ASSET SUMMARY Land Area (m²) 30,351 LEASING, CONSTRUCTION AND VALUE OUTCOMES Lettable Area (m²) 13,000 ▪ Ausdeck has recently pre-committed the entire facility (13,000m²) for 10 years Occupancy (by income) ‘on completion’ 100% with a t
Slide 21: 56-72 Bandara Street: Valuation Movement
56-72 BANDARA STREET RICHLANDS, QUEENSLAND For personal use only RICHLANDS WILL DELIVER AN ADDITIONAL $1.8 MILLION IN PROPERTY INCOME PER ANNUM FROM JULY 2023 VALUATION MOVEMENT THROUGH DEVELOPMENT ($ millions) NLA: 13,000m2 1. Contract estimate currently at tender process subject to final DA approv
Slide 22: 109-135 Boundary Road (Pinnacle North Lakes)
109-135 BOUNDARY ROAD (PINNACLE NORTH LAKES) NORTH LAKES, QUEENSLAND For personal use only ASSET SUMMARY PROJECT UPDATE Gross Land Area (m²) 323,800 Total Useable Land (m²) 250,951 ▪ GARDA’s development application (DA) has recently achieved approval, allowing various bulk earths works and civil wor
Slide 23: 109-135 Boundary Road: Valuation Movement
109-135 BOUNDARY ROAD (PINNACLE NORTH LAKES) NORTH LAKES, QUEENSLAND For personal use only NORTH LAKES BUILT FORM CAN COMMENCE PRIOR TO COMPLETION OF BULK EARTH AND CIVIL WORKS VALUATION MOVEMENT THROUGH DEVELOPMENT ($ million) NLA1: ~ 97,000m2 1. Estimated bulk earths works and civil works. Subject
Slide 24: 372-402 Progress Road (Pinnacle East), Wacol
372-402 PROGRESS ROAD (PINNACLE EAST) WACOL, QUEENSLAND For personal use only ASSET SUMMARY Gross Land Area (m²) 41,350 NLA: 13,745m2 Lettable Area (m²) ~ 13,745 Occupancy (by income) ‘on completion’ N/A WALE (by income) ‘on completion’ N/A ‘AS IS’ VALUATION SUMMARY Valuation Date 1 May 2022 Capital
Slide 25: Property Portfolio
For personal use only PROPERTY PORTFOLIO Botanicca 9, Richmond
Slide 26: Total Property Overview
TOTAL PROPERTY OVERVIEW For personal use only Sector (by Value) Geography (by value) Top 10 Tenants Tenant Property Gross Income (%) 49% J Blackwoods & Sons Mackay 9.4% Planet Innovation Box Hill 9.0% 40% Volvo Group Wacol 8.8% Komatsu Morningside 6.4% 45% Golder Associates Botanicca 7 6.2% Pinkenba
Slide 27: Integrated, Commercial and Industrial Property Platform
PROPERTY PORTFOLIO INTEGRATED, COMMERCIAL AND INDUSTRIAL PROPERTY PLATFORM For personal use only 27
Slide 28: Finance
For personal use only FINANCE 41 Bivouac Pl, Wacol
Slide 29: Capital Management
CAPITAL MANAGEMENT STRONG CASH POSITION AND DEBT FACILITY HEADROOM For personal use only ▪ On 30 May 2022, GARDA extended its existing $280.0 million syndicated Key Debt Metrics – 30 June 2022 debt facility for an additional three years, now expiring in March 2026. Total debt facilities $320 million
Slide 30: Guidance: Outlook for FY23
GUIDANCE OUTLOOK FOR FY23 For personal use only Distributions ▪ FY23 distribution guidance of $0.072 per security, paid in $0.018 quarterly payments. Operational Focus – Projects and Leasing ▪ Expected tax advantaged income of between 90% and 95%. ▪ Successfully deliver the three Brisbane industrial
Slide 31: Funds From Operations
FUNDS FROM OPERATIONS For personal use only 30 Jun 30 Jun 2022 2021 $000 $000 Net profit after tax 140,519 35,689 Adjustments for non-cash items included in net profit after tax: Valuations – (deduct increases) / add back decreases: Investment properties (111,642) (50,671) Derivatives (12,832) (3,59
Slide 32: Income Statement
INCOME STATEMENT For personal use only 30 Jun 30 Jun 2022 2021 $000 $000 Revenue Revenue from ordinary activities ❶ 33,709 30,481 ❶ Revenue increased by $3.2 million. largely due to leases commencing Other income 68 243 following development, positive portfolio leasing outcomes and increase in recov
Slide 33: Balance Sheet
BALANCE SHEET For personal use only 30 Jun 30 Jun 2022 2021 $000 $000 Current assets Cash and cash equivalents 19,794 15,534 ❶ Prior comparative period included a non-core industrial asset located at Receivables and other assets 8,928 3,723 Lytton that was subsequently sold. Assets held for sale ❶ -
Slide 34: Glossary: Definitions and Explanations
GLOSSARY DEFINITIONS AND EXPLANATIONS For personal use only Item / Term Definition / Explanation Calculated as the FY22 forecast distribution rate of $0.072 per security divided by GARDA’s ASX 29 July 2022 opening price of $1.555 per FY22 Current DPU Yield security. Funds from Operations is the Grou
Slide 35: For personal use only
For personal use only w: gardaproperty.com.au e: info@gardaproperty.com.au Level 21, 12 Creek Street, Brisbane QLD 4000 p: +61 7 3002 5300 GPO Box 5270, Brisbane QLD 4001