Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — Shareholder Meeting (November 2018)
34 slides from Growthpoint Properties Australia's shareholder meeting presentation, Nov 21, 2018
Slide 1: ASX Announcement: Presentation to combined AGM and General Meeting
21 November 2018 ASX ANNOUNCEMENT GROWTHPOINT PROPERTIES AUSTRALIA (ASX Code: GOZ) Presentation to the combined Annual General Meeting and General Meeting Pursuant to ASX Listing Rule 3.13.3, the Chairman’s and Managing Director’s address for today’s combined Annual General Meeting of Growthpoint Pr
Slide 2: Chairman's Address
Annual General Meeting of Growthpoint Properties Australia Limited Meeting of the unit holders of Growthpoint Properties Australia Trust CHAIRMAN’S ADDRESS _______________________________________________________________________ Location: Level 42, 101 Collins Street, Melbourne, Vic 3000 Date: Wednes
Slide 3: Introduction of directors and meeting agenda
I will start by introducing our Directors. They are, from your right, Timothy Collyer, our Managing Director; Maxine Brenner; Estienne de Klerk; Grant Jackson; Francois Marais; Norbert Sasse and our recently appointed director, Josephine Sukkar. Also present today is Yien Hong, our Company Secretary
Slide 4: FY2018 performance and voting procedures
3. I will then explain the voting procedures and address each of the remaining items of business set out in the notice of meetings. Securityholders will have the opportunity to ask questions or make comments in relation to each item. After the meeting, directors, management and KPMG will be availabl
Slide 5: Strategy and five years of progress
Our strategy of acquiring high quality properties with stable income backed by high quality tenants remains relevant today. Strong fundamentals in the office and industrial sectors support the Group continuing to execute in these preferred markets, with a focus on continually improving and diversify
Slide 6: Net zero emissions commitment and solar projects
believe the progress we’ve made has contributed to our outperformance in total returns to Securityholders. Finally, recognising the increasing burden of energy costs for our tenants, and with a view to reducing our carbon footprint as an organisation, Growthpoint made a commitment in FY17 to move to
Slide 7: Managing Director's Address
_______________________________________________________________________ MANAGING DIRECTOR’S ADDRESS Thankyou Geoff. Security holders, ladies and gentlemen, I welcome you to the Growthpoint Properties Australia 2018 Annual General Meeting. Today, I will provide an overview of how we see the market, s
Slide 8: Infrastructure spending and economic fundamentals
o Huge infrastructure spending by Federal and State Governments totaling $324 billion which is supportive of the economy, our growing cities, as well as the accessibility of non-CBD precincts where a large proportion of our office building and industrial investment are located. o For commercial real
Slide 9: Valuations, NTA, gearing and portfolio growth
A fall in capitalisation rates and good leasing results over the year, provided for a 6.2% increase in property asset values, on a like for like basis, which assisted strong growth in Net Tangible Assets per security of 10.8%, to $3.19 per security. Growthpoint’s capital management position is healt
Slide 10: Tenant quality, occupancy and lease expiry
Growthpoint’s distribution is underpinned by the rental income we receive from tenants in our buildings, so we place a lot of focus on the quality of each tenant and their ability to pay rent over the lease term. The top 10 tenants include federal and state governments and larger international and d
Slide 11: Debt diversification and Newstead acquisition
- Debt that is diversified to a number of lenders. We have access to domestic bank debt, international debt providers and debt capital markets here and offshore - Debt headroom to fund future growth opportunities On Monday we announced the exciting acquisition of a modern A- Grade office building in
Slide 12: Leasing, Woolworths sites and acquisition approach
campaign for this A grade office, with high green credentials, is meeting with positive early momentum. We expect a yield on cost of between 7.5% and 8.5% when fully let. In respect of two key Woolworths Distribution sites, we are working on strategies that will enhance value and long-term rental in
Slide 13: FY2019 guidance and outlook
and cash consideration being paid to investors, there has been heightened interest in Growthpoint as an investment proposition from both domestic and offshore investors. To the outlook. Growthpoint’s FY2019 guidance is for FFO of “at least” 24.8 cents per security and a distribution of 23.0 cents pe
Slide 14: Space to thrive – 2018 Annual General Meeting
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 space to thrive 2018 Annual General Meeting 21 November 2018
Slide 15: Chairman's address
Chairman’s address A1, 32 Cordelia Street and A4, 52 Merivale Street, South Brisbane, QLD 255 London Circuit, Canberra, ACT
Slide 16: Simple business model – strong track record of returns
Simple business model – strong track record of returns nnInvestment mandate and business model unchanged since inception in 2009 nnStrategy remains relevant, delivering strong track record of Securityholder returns nnFocus to continue on acquiring quality property with stable income and long-term gr
Slide 17: Five years of growth
Five years of growth1 Property portfolio value Distribution per security Market capitalisation 103% from $1,694m to $3,447m 21% from 18.3 cents to 22.2 cents 152% from $967m to $2,438m Gender diversity of employees Gender diversity of Board NABERS average energy rating 50% (30 June 3013: 18% women)
Slide 18: Managing Director's address
Managing Director’s address 836 Wellington Street, West Perth, WA
Slide 19: Conditions remain supportive of commercial property
Conditions remain supportive of Commercial property nnOngoing demand for high quality office and industrial property nnBuoyant economy and strong business conditions driving leasing demand nn$324 billion1 infrastructure investment to benefit metro office and industrial property markets Unemployment1
Slide 20: FY18 Highlights
FY18 Highlights Securityholder Significant Property Capital returns Transactions Management nn 25.0 cents in Funds nn Acquisitions: $205.4m nn Like-for-like valuation nn Lowered gearing to From Operations nn Divestments at premium uplift of $193.8m, or 33.9% (FFO) per security to book value: $90.8m
Slide 21: Property Portfolio
Property Portfolio1 At 30 September 2018 84% of properties located on Eastern Seaboard Office properties ($2.2bn) Industrial properties ($1.1bn) (number of assets) 25% Queensland $876.9m $3.4bn – Office $632.0m – Industrial $244.9m 26% Office portfolio New South Wales 98% $893.5m 7 4 – Office $699.3
Slide 22: Property Portfolio (continued)
Property Portfolio1 (continued) Top ten tenants Portfolio lease expiry profile (%) Annual rent review type (%)3 by passing rent as at 30 September 2018 per financial year, by income as at 30 September 2018 52 Tenant Credit WALE type rating2 % (yrs) WARR 7 1 Woolworths Listed Baa2 15 4.2 8 68 3.3% NS
Slide 23: Supportive parent, conservative financial management
Supportive parent, conservative financial management GRT investment in Current market value Debt management GOZ (AUD invested) of GRT investment1 and gearing2 (AUD) $1,649.1m Weighted average Gearing target range debt maturity 5.0yrs 35-45% Currently 35.6% $1,002.7m All-in cost of debt Targeting fix
Slide 24: New property acquisition and equity raising
New property acquisition and equity raising Property Details Key characteristics Property type Office nn Landmark location in Newstead, within Brisbane’s Ownership 100% Freehold Title prestigious Urban Renewal Precinct Purchase Price $250.0m nn Completed in 2014 with architecture by ML Designs and h
Slide 25: Pipeline of growth opportunities to progress in FY19
Pipeline of growth opportunities to progress in FY19 Development Expansion / development Direct acquisitions Listed market – Office – Industrial opportunities Botanicca 3, Woolworths, Woolworths, 836 Wellington St, 100 Skyring Tce, nn 18.2% stake in Richmond, VIC Gepps Cross, Broadmeadows, West Pert
Slide 26: Summary
Summary nnReiterating FY19 Guidance –– FFO: Proforma FY19 FFO guidance increased to 24.8 cps1 –– Distributions: 23.0 cps nnFavoured office and industrial sectors continue to display superior growth prospects nnBalance sheet in good shape nnEnhanced returns to be generated from: –– Income from newly
Slide 27: Items of business
Items of business 75 Dorcas Street, South Melbourne, VIC
Slide 28: Item 1: Financial Reports – Company & Trust
Item 1: Financial Reports – Company & Trust 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 2018; and (b) the financial reports and the reports of the Directors and the auditors in res
Slide 29: Item 2: Remuneration report – Company only
Item 2: Remuneration report – Company 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 571,092,065 99.30 financial year end
Slide 30: Item 3: Re-election of Directors – Company only
Item 3: Re-election of Directors – Company only To consider and, if thought fit, pass the following resolutions as separate ordinary resolutions: (a) “That Mr Geoffrey Tomlinson, who retires under rule 11.1(d) of the Company’s Constitution and, being eligible, offers himself for re-election, be re-e
Slide 31: 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 To consider and, if thought fit, pass the following (a) Proxies Received resolution as an ordinary resolution: Vote Votes % “That for the purposes of ASX Listing Rule 10.14 and all other purposes
Slide 32: Item 5: Renewal of proportional takeover provisions
Item 5: Approval of renewal of proportional takeover provisions for a further three years – Company only To consider and, if thought fit, pass the following as a Proxies Received special resolution: “That the proportional takeover provisions in the Vote Votes % form of rule 8 of the Company’s Consti
Slide 33: Close of meeting
Close of meeting 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 120 Northcorp Boulevard, Broadmeadows, VIC Growthpoint Properties Australia Annual General Meeting | 21 Novem
Slide 34: Thank you
Contact details: 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 Institutional Investors: Daniel
Growthpoint Properties Australia — Shareholder Meeting (November 2018) on 6ix