Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — H1 FY2011 Earnings Presentation
23 slides from Growthpoint Properties Australia's earnings presentation, Feb 22, 2011
Slide 1: Interim Results Presentation for the Six Months Ended 31 December 2010
For personal use only GROWTHPOINT PROPERTIES AUSTRALIA LIMITED (ASX Code: GOZ) INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2010
Slide 2: Disclaimer
DISCLAIMER For personal use only Every effort has been made to provide up-to-date, accurate and complete information in this presentation, however, neither the Group nor any of its related entities (as that term is defined in the Corporations Act 2001 (Cth)), employees, advisers, agents or other con
Slide 3: Agenda
AGENDA For personal use only 1. Overview 2. Financial Highlights 3. Portfolio Overview 4. Property Market 5. Strategy & Outlook Worldpark, 33 – 39 Richmond Road, Keswick, SA 2
Slide 4: Overview
For personal use only OVERVIEW 3
Slide 5: Overview - GOZ
OVERVIEW - GOZ $101m equity $46.5m purchase of $2.00 raising completed World Park Adelaide For personal use only GOZ Share Price $1.90 Market $171.5m, 7 property $1.80 capitalisation portfolio acquired of $400m with associated rights 23 investment 33 investment GOZ achieves 14.0 properties propertie
Slide 6: GOZ at a Glance
GOZ AT A GLANCE* For personal use only To provide investors with a tradable security producing consistently growing income returns and long-term capital appreciation. Objective and Investment Mandate Invest in well-located property assets in Australia diversified by sector (office, industrial and re
Slide 7: Performance - Months Ended December 2010
PERFORMANCE – 12 MONTHS ENDED 31 DECEMBER 2010 For personal use only Total Returns (12 months ended 31 December 2010) GOZ Performance Income Return⁵ 10.2% Capital Return⁶ 18.1% Total Return 28.3% Sources: 1. UBS Government Bond Index-All Maturities 2. UBS Bank Bill Index 3. S&P / ASX 300 Accumulatio
Slide 8: Financial Highlights
For personal use only FINANCIAL HIGHLIGHTS 7
Slide 9: Results Highlights
RESULTS HIGHLIGHTS For personal use only HY 2010 HY 2009 Change ITEM $ million $ million $ million Net property income 36.9 28.3 8.6 Net profit 24.8 33.2 (8.4) Distributions paid / payable 15.8 8.8 7.0 Distributions per stapled security (cents)¹ 8.4 5.5 2.9 As at Dec 2010 As at Jun 2010 Change ITEM
Slide 10: Distributable Income
DISTRIBUTABLE INCOME For personal use only HY 2010 HY 2009 $ million $ million Net property income 36.9 28.3 Net interest expense (19.3) (17.8) Operating and trust expenses (1.8) (1.7) Distributable income 15.8 8.8 Distributions paid/payable 15.8 8.8 • GOZ Securityholders – 8.4 cents per security HY
Slide 11: Balance Sheet
BALANCE SHEET For personal use only As at Dec 2010 As at Jun 2010 Change ITEM $ million $ million $ million Current assets Cash and cash equivalents 19 17 2 Other assets¹ 15 11 4 Total current assets 34 28 6 Non-current assets Investment property 978 747 231 Less Straight line rental adjustments (34
Slide 12: Capital Management
CAPITAL MANAGEMENT For personal use only Equity raising Rights issue of $101m successfully completed September 2010 Hedging Maturity Profile Offer price $1.90 30% 100% FY 11 pro forma DPS yield on offer price 9.0% 27% (Discount)/premium to pro forma NTA per security (4.5%) 90% 25% (Discount)/premium
Slide 13: Property Overview
For personal use only PROPERTY OVERVIEW 12
Slide 14: Acquisitions & Divestments
ACQUISITIONS & DIVESTMENTS For personal use only Acquisitions Purchase Price Initial Yield Property ($ million) SW1 Carpark, South Brisbane, QLD $9.7 9.0% 52 Merivale Street, South Brisbane, QLD $62.4 8.7% 32 Cordelia Street, South Brisbane, QLD $60.7 8.1% 13 Business Street, Yatala, QLD $14.9 8.5%
Slide 15: Property Overview - Assets
PROPERTY OVERVIEW - ASSETS For personal use only Sector Diversity - December 2009 Sector Diversity - December 2010 1% 18% 81% 100% Industrial Industrial Office Car park Geographic Diversity- December 2009 Geographic Diversity- December 2010 15% 2% 11% 8% 34% 10% 49% 12% 23% 34% VIC QLD SA WA NSW VIC
Slide 16: Property Overview - Tenancy
PROPERTY OVERVIEW - TENANCY For personal use only Lease Expiry Profile 100% 100% 90% 90% 80% 80% 70% 64% 70% 60% 60% Annual Rent Expiries 50% 50% 40% 40% Cumulative 30% 30% Rent Expiries 20% 20% 10% 4% 6% 7% 6% 6% 10% 3% 3% 2% 0% 0% 0% 0% • Diversifying quality tenancy base with acquisitions, whilst
Slide 17: Property Overview - Tenancy Continued
PROPERTY OVERVIEW – TENANCY CONTINUED For personal use only % of Tenant No. of Major Tenant Portfolio Ownership WALE leases Rent 1 Woolworths 46% 11.7 6 ASX Top 10 by Market Cap 2 Coles Group Limited 8% 11.1 1 ASX Top 10 by Market Cap 3 Sinclair Knight Mertz 6% 7.8 1 Private Company 4 Star Track Exp
Slide 18: Property Overview - Valuations
PROPERTY OVERVIEW – VALUATIONS For personal use only Properties Ave. % Change Number of % Change Book Independently Value ($m) Capitalisation Average Market properties value Valued as at 31 Rate Yield December 2010 21 $736.3 8.6% 0.3% 0% Properties acquired Ave. Number of in the 6 Months to 31 Value
Slide 19: Property Market
For personal use only PROPERTY MARKET 18
Slide 20: Property Market
PROPERTY MARKET For personal use only •Market stable with low vacancy and tenants considering pre-commitments •Rental levels flat, with moderate growth expected from late 2011 Industrial •Yield compression has been mild – Cap rates – Prime 8.0% to 8.5%, secondary 9.0% plus •GDP of 2.7% seasonally ad
Slide 21: Strategy & Outlook
For personal use only STRATEGY & OUTLOOK 20
Slide 22: Strategy & Outlook
STRATEGY & OUTLOOK For personal use only Strategy Outlook Clear Investment Strategy Positive outlook Office, retail, industrial property landlord Market expectations that asset values will be Domestic Australia focus stable/ increase Not developer, fund manager or lender Portfolio well
Slide 23: Thank You
For personal use only THANK YOU For further information contact: Timothy Collyer, Managing Director Aaron Hockly, Company Secretary and General Counsel Investor information line: 1800 260 453 www.growthpoint.com.au
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