Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — Shareholder Meeting (November 2017)
29 slides from Growthpoint Properties Australia's shareholder meeting presentation, Nov 22, 2017
Slide 1: Growthpoint's Key Metrics – ASX Announcement
22 November 2017 For personal use only ASX ANNOUNCEMENT GROWTHPOINT PROPERTIES AUSTRALIA (ASX Code: GOZ) Growthpoint’s Key Metrics Presentation to the combined Annual General Meeting and at 30 September 2017 General Meeting Total property portfolio $3.2 billion value Pursuant to ASX Listing Rule 3.1
Slide 2: Chairman's Address
Annual General Meeting of Growthpoint Properties Australia Limited Meeting of the unit holders of Growthpoint Properties Australia Trust 2.00 pm, Level 42, 101 Collins Street, Melbourne, Vic 3000 For personal use only Wednesday, 22 November 2017 ______________________________________________________
Slide 3: Chairman's Address: Agenda and FY17 Review
Finally, I would like to welcome Growthpoint’s employees, most of whom are also present today. The agenda for today is as follows: For personal use only 1. A presentation on the business and its strategy by Managing Director, Tim Collyer; 2. Presentation of the combined annual report for the company
Slide 4: Chairman's Address (continued)
listed opportunities that are accretive to earnings and in the best interests of Growthpoint securityholders. Importantly during FY17 we were also able to take advantage of strong pricing For personal use only conditions to divest a number of assets either considered ‘non-core’ to the Group, or asse
Slide 5: Chairman's Address (continued)
The return on equity, which measures capital growth by changes in the NTA per security over the year plus the distribution yield, was very good at 18.6%. Growthpoint outperformed the S&P/ASX 300 A-REIT index in FY17 and For personal use only delivered a total securityholder return of 17.5% per annum
Slide 6: Managing Director's Address: Portfolio and Update
Police, the Commonwealth of Australia, David Jones/Country Road, Jacobs Group, Linfox, Samsung, Lion and ANZ Bank. Each tenant lease provides for annual rent increases to a fixed percentage, with For personal use only a small number of leases referenced to the consumer price index. The weighted aver
Slide 7: Guidance and Market Conditions
Seven leases totalling 21,213m² have been completed since 30 June 2017 and a further 60,000m² are under heads of agreement with lease documentation being negotiated for execution. For personal use only Acquisitions completed and a positive operating environment has enabled Growthpoint to raise its g
Slide 8: Strategy and FY18 Objectives
The weak spot is the retail market. Lower levels of consumer spending, together with heightened competition from internet retailers, soon to include Amazon, has placed pressure on retail margins and rents. For personal use only Our assessment is that retail property yields are too low for the growth
Slide 9: Gearing and Sustainability
Growthpoint’s gearing at 38.4% (post the Mulgrave property settlement) is towards the lower end of its target gearing range of 35% to 45%, and we are comfortable with this. Given Growthpoint enjoys an investment credit rating from Moody’s and has several debt capital markets open to it as an issuer
Slide 10: Annual General Meeting Presentation November 2017
For personal use only Annual General Meeting Presentation 22 November 2017 Growthpoint Properties Australia Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409 www.growthpoint.com.au
Slide 11: Chairman's address
2017 Annual General Meeting Presentation For personal use only Chairman’s address Geoffrey Tomlinson Independent Chairman & Director 255 London Circuit, Canberra, ACT
Slide 12: Track record of growing Securityholder returns
Track record of growing Securityholder returns For personal use only Funds From Operations (FFO) (¢) Distributions (¢) Total Securityholder Return (TSR) per stapled security FY13-FY17 per stapled security comparison over 1, 3 and 5 years CAGR1 7.1% (%, p.a.)2 FY13-FY17 25.5 CAGR1 4.1% 17.5 22.9 21.8
Slide 13: Managing Director's address
2017 Annual General Meeting Presentation For personal use only Managing Director’s address Timothy Collyer Managing Director 15 Green Square Close, Canberra, ACT
Slide 14: Agenda
Agenda For personal use only 1. FY17 highlights 2. Property portfolio 3. Update 4. Market conditions 5. Strategy and FY18 objectives 599 Main North Road, Gepps Cross, SA Growthpoint Properties Australia Annual General Meeting | 22 November 2017 5
Slide 15: Key highlights for FY17
Key highlights for FY17 For personal use only Property Securityholder returns • 94,921 sqm of leasing completed • 11.4% growth in FFO per security in FY17 (9% of total lettable area) • 4.9% growth in distributions per security • Portfolio reweighted into sectors • 18.6% return on equity (FY16: 13.5%
Slide 16: Geographic and sector diversity
87% of property concentrated on Geographic diversity by property value as at 30 September 2017 Australia’s Eastern Seaboard1 For personal use only VIC 30% 87% QLD 26% located on NSW 26% Australia’s SA 6% Eastern Seaboard WA 6% Office properties ACT 5% Industrial properties Brisbane, QLD TAS 1% Secto
Slide 17: Key Portfolio Metrics
Key Portfolio Metrics For personal use only Top ten tenants Annual rent review type (%) Tenant type (%) Tenants use (%) by passing rent as at 30 September 2017 as at 30 September 2017 by income as at 30 September 2017 by income as at 30 September 2017 % WALE (yrs) Woolworths 17% 5.1 NSW Police 9% 6.
Slide 18: Update: post June 2017
Update: post 30 June 2017 For personal use only New Leases • Seven leases executed totalling 21,213 sqm • Heads of agreement signed for over LD 60,000 sqm SO Perth industrial IDR interest Woolworths, Richmond portfolio acquired Mulgrave development • Acquisition of portfolio • 18.2% interest • Prope
Slide 19: Economic and property outlook
Economic outlook Property outlook Office Industrial Retail For personal use only –– Stable domestic economy –– Declining vacancy, growing population, –– Largely stable across all States –– Significant structural –– Near term cash rate outlook significant infrastructure spending and headwinds remain,
Slide 20: Strategy and FY18 objectives
Strategy and FY18 objectives For personal use only Primary objective: Increase distributions for Securityholders Other objectives: –– Achieve upgraded FFO and distribution guidance: Disciplined Financial Growth Returns –– FFO: at least 24.3 cps –– Distributions: 22.2 cps –– Continue to evaluate inve
Slide 21: Items of business
2017 Annual General Meeting Presentation For personal use only Items of business 33-39 Richmond Road, Keswick, SA
Slide 22: Item 1: Financial Reports – Company & Trust
Item 1: Financial Reports – Company & Trust For personal use only To receive and consider: (a) the financial reports and the reports of the Directors and the auditors in respect of the Company for the financial year ended 30 June 2017; and (b) the financial reports and the reports of the Directors a
Slide 23: Item 2: Remuneration report – Company only
Item 2: Remuneration report – Company only For personal use only To consider and, if thought fit, pass the following Proxies Received resolution as an ordinary resolution: “That the Remuneration Report of the Company Vote Votes % (which forms part of the Directors’ Report) for the For 527,074,278 99
Slide 24: Item 3: Election and Re-election of Directors
Item 3: Election and Re-election of Directors – Company only For personal use only To consider and, if thought fit, pass the following resolutions as separate ordinary resolutions: (a) “That Ms Josephine Sukkar, who retires under rule 11.1(c) of the Company’s Constitution and being eligible, offers
Slide 25: Item 4: Approval of grant of Performance Rights to Timothy Collyer
Item 4: Approval of grant of Performance Rights to Timothy Collyer (Managing Director) - Company & Trust For personal use only To consider and, if thought fit, pass the following (a) Proxies Received resolution as ordinary resolution: Vote Votes % “That for the purposes of ASX Listing Rule 10.14 and
Slide 26: Item 5: Amendment of Trust Constitution
Item 5: Amendment of Trust Constitution – Trust only For personal use only To consider and, if thought fit, pass the following as a Proxies Received special resolution: “That, effective from the close of the Meeting, Vote Votes % the constitution of the Growthpoint Properties For 527,620,728 99.83 A
Slide 27: Item 6: Increase to Non-Executive Director maximum aggregate fees
Item 6: Approval of increase to Non-Executive Director maximum aggregate fees – Company only For personal use only To consider and, if thought fit, to pass the following as Proxies Received an ordinary resolution: “In accordance with the ASX Listing Rules 10.17 Vote Votes % and for all other purpose
Slide 28: Close of meeting
Close of meeting For personal use only Attendees are invited to join directors, auditors and staff for refreshments immediately following conclusion of meeting. Visit the Group’s website at www.growthpoint.com.au Swan Street development, Richmond, VIC Growthpoint Properties Australia Annual General
Slide 29: Contact details
Contact details: For personal use only Retail Investors: Computershare Investor Services Pty Limited, GPO Box 2975, Melbourne VIC 3001 Australia Phone (within Australia): 1300 850 505 Phone (outside Australia): +61(0)3 9415 4000 Fax: +61(0)3 9473 2500 Email: webqueries@computershare.com.au Instituti
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