Goodman Group · ASX:GMG
Goodman — Goodman Property Trust — H1 2022 Earnings Presentation
38 slides from Goodman's earnings presentation, Nov 11, 2021
Slide 1: Interim Result 2022
Interim Result 2022 Goodman Property Trust 1
Slide 2: Contents
Goodman Property Trust Interim Result 2022 Contents Overview Capital management 03 26 Investment Summary & portfolio outlook 06 30 Sustainability Appendix 17 34 Financial result 21 Presented by: ◼ John Dakin Chief Executive Officer ◼ James Spence Director - Investment Management ◼ Andy Eakin Chief F
Slide 3: Overview
Goodman Property Trust Interim Result 2022 Overview 3
Slide 4: Structural trends
Goodman Property Trust Interim Result 2022 Structural trends Growth of e-commerce and the digital economy: E-commerce % of total retail sales New Zealand ◼ The growth in e-commerce has accelerated with the pandemic. Consumers are increasingly opting for the safety and convenience of online shopping
Slide 5: Results overview
Goodman Property Trust Interim Result 2022 Results overview An investment strategy focused on urban logistics has positioned GMT to benefit from the growing digital economy, structural changes and significant customer demand. Portfolio ◼ Portfolio occupancy of 99.5%, WALE of 5.8 years1, following 16
Slide 6: Investment portfolio
Goodman Property Trust Interim Result 2022 Investment portfolio Gateway warehouses – Highbrook Business Park 6
Slide 7: Land acquisition
Goodman Property Trust Interim Result 2022 Land acquisition Land area Purchase price 34ha $75m Acquisition properties Acquisition remains conditional 7
Slide 8: New developments
Goodman Property Trust Interim Result 2022 New developments Total Project Cost $97.3m Lettable area Stanley Black & Decker – Highbrook Business Park Artist’s impression 16,373 sqm Yield on total cost 5.1% NZ Blood – Highbrook Business Park Artist’s impression 8
Slide 9: Work in progress
Goodman Property Trust Interim Result 2022 Work in progress Projects underway Total project cost Total lettable area 10 $354.2m 87,803 sqm Mainfreight – Favona Artist’s impression As at 11 November 2021, including newly announced developments. 9
Slide 10: Work-in-progress
Goodman Property Trust Interim Result 2022 Work-in-progress Work-in-progress summary1 ◼ Current development programme of 87,803 sqm has a total project Lettable area Expected cost of $354.2 million, a yield on cost of 5.5%, and is currently 79% Estate sqm completion date2 leased M20 Business Park 9,
Slide 11: Development pipeline
Goodman Property Trust Interim Result 2022 Development pipeline Regeneration of existing brownfield sites is providing more sustainable development opportunities, closer to consumers. We expect this activity to continue to be a major source of development into the future. Development land 87 ha acro
Slide 12: GMT's property portfolio
Goodman Property Trust Interim Result 2022 GMT’s property portfolio Efficient and desirable distribution locations Property portfolio Net lettable area $4.3bn 1.1m sqm Occupancy WALE1 99.5 % 5.8 years 1 Includes leased developments Portfolio metrics do not include the acquisition of land adjoining V
Slide 13: Leasing
Goodman Property Trust Interim Result 2022 Leasing Leased in FY22 Average lease up period Passing rental growth 169,122 sqm 15.5% of portfolio 3 months from vacancy or PC date to lease 9.7% on stabilised leasing deals commencement date Core portfolio average warehouse rate Average lease term Average
Slide 14: Portfolio valuation
Goodman Property Trust Interim Result 2022 Portfolio valuation Portfolio summary as at 30 September 2021 Value Cap rate Initial yield WALE Occupancy Net lettable area Capital value $m years sqm psm Highbrook Business Park 2,175.3 4.1% 3.9% 6.1 100% 469,588 4,632 Savill Link 550.9 4.0% 3.9% 6.6 100%
Slide 15: Rental profile
Goodman Property Trust Interim Result 2022 Rental profile ◼ Underlying like-for-like rental growth for 1H22 of 5.1% ◼ Portfolio assessed to be ~9% under-rented ($16.3m)1 Portfolio review profile % of portfolio income 80% ◼ 20% of portfolio is subject to market review or expiry prior to the end of FY
Slide 16: Customer base
Goodman Property Trust Interim Result 2022 Customer base ◼ Top 10 customers accounting for 35% of portfolio income, generally Top ten customers focused on storage, logistics and distribution % of portfolio income, including subsidiary companies ◼ 2% of GMT’s portfolio weighted towards retail (cafes,
Slide 17: Sustainability
Goodman Property Trust Interim Result 2022 Sustainability Native revegetation, Pukekiwiriki Crater, Highbrook 17
Slide 18: Core sustainability initiatives
Goodman Property Trust Interim Result 2022 Core sustainability initiatives ◼ Targeting 5 star Green Star design-build rating on all new developments ◼ Committed to reducing and offsetting embodied carbon in all new developments ◼ Increased development on existing infill locations, with over 70% of f
Slide 19: Environmental sustainability
Goodman Property Trust Interim Result 2022 Environmental sustainability ◼ Solar PV arrays totalling 1.1MWp either complete or in progress, expected to produce 1,450MWh per annum and offset around 160 t-CO2-e per annum ◼ 400,000 litres of rainwater harvesting for non-potable use in toilets, building
Slide 20: Measuring sustainable performance
Goodman Property Trust Interim Result 2022 Measuring sustainable performance ◼ Electrical sub-metering at all new developments to measure energy intensity ◼ Ongoing Green Star Performance pilot for five industrial properties at Highbrook ◼ Undertaking NABERSNZ assessment for office properties at the
Slide 21: Financial result
Goodman Property Trust Interim Result 2022 Financial result Metrobox – Savill Link 21
Slide 22: Financial highlights
Goodman Property Trust Interim Result 2022 Financialhighlights Financial highlights Profit before tax Operating earnings before tax1 Net tangible asset backing Loan-to-value ratio2 $570.0m $60.2m 249.6cpu 17.5% Net property income growth3 Cash earnings4 1H22 distribution Weighted average debt term5
Slide 23: Net property income
Goodman Property Trust Interim Result 2022 Net property income Net property income bridge $m 80.0 79.0 -0.1 78.5 ◼ Net property income has increased by 78.0 $4.2 million (5.7%) for the period +2.6 77.0 ◼ Underlying rental growth and income 76.0 from acquisitions and completed developments have more
Slide 24: Cash earnings
Goodman Property Trust Interim Result 2022 Cash earnings Cash earnings calculation $m 1H22 1H21 % change ◼ 1H22 cash earnings of 3.29 cents per unit, a 8.2% Operating earnings before tax1 60.2 56.0 7.5% increase on 1H21 Tax on operating earnings (11.0) (9.6) 14.6% ◼ Distributions of 2.75 cents per u
Slide 25: Capital growth
Goodman Property Trust Interim Result 2022 Capital growth Net tangible assets cents per unit 270.0 250.0 +1.1 +0.9 249.6 ◼ NTA increased 37.1 cents per unit (17.5%) to 249.6 cents per unit 230.0 +35.1 ◼ 13.2% increase in portfolio value main contributor 210.0 212.5 ◼ $14.9 million revaluation gain f
Slide 26: Capital management
Goodman Property Trust Interim Result 2022 Capital management NCI – Savill Link 26
Slide 27: Gearing
Goodman Property Trust Interim Result 2022 Gearing Loan to value ratio 24% ◼ GMT continues to be conservatively leveraged within preferred range of 20%-30% 22% 22.6% +3.8% ◼ LVR of 17.5% at 30 September 2021 with fully 20% +0.4% committed LVR of 22.6% 19.2% -2.2% 18% +1.3% ◼ Committed developments c
Slide 28: Managing funding risk
Goodman Property Trust Interim Result 2022 Managing funding risk Maturity profile $m ◼ $310 million of available liquidity 300 ◼ First maturity, GMB030 in June 2022 ◼ Balance sheet strength and available liquidity 250 provides: ＋ Capacity for acquisitions ＋ Capacity for investment in development pip
Slide 29: Managing interest rate risk
Goodman Property Trust Interim Result 2022 Managing interest rate risk Hedging profile ◼ High level of hedging provides protection in a rising 100% interest rate environment 90% ◼ Weighted average debt cost reduced to 3.2% 80% ◼ Normalised interest cover ratio (ICR), excluding 70% one-off cash cost
Slide 30: Summary & outlook
Goodman Property Trust Interim Result 2022 Summary & outlook NCI - Savill Link 30
Slide 31: Summary & outlook
Goodman Property Trust Interim Result 2022 Summary & outlook Looking ahead ◼ The results of the deliberate repositioning of GMT’s portfolio are now being realised. Customer demand for high-quality space close to consumers continues to be strong ◼ Significant new leasing, high occupancy levels, susta
Slide 32: Questions
Goodman Property Trust Interim Result 2022 Questions Highbrook Business Park 32
Slide 33: Thank you
Goodman Property Trust Interim Result 2022 Thank you Disclaimer: The information and opinions in this presentation were prepared by Goodman (NZ) Limited on behalf of Goodman Property Trust and its subsidiaries (Goodman). Goodman makes no representation or warranty as to the accuracy or completeness
Slide 34: Appendix
Goodman Property Trust Interim Result 2022 Appendix Cottonsoft – Highbrook Business Park 34
Slide 35: Work-in-progress
Goodman Property Trust Interim Result 2022 Work-in-progress Work-in-progress summary as at 11 November 2021 Development Estate Lettable area sqm Completion date Leased Existing developments M20 9,000 M20 Business Park 9,665 Nov-21 100% Metroglass Yard Expansion Highbrook Business Park 2,120 Dec-21 1
Slide 36: Profit or loss
Goodman Property Trust Interim Result 2022 Profit or loss For the six months ended 30 September 2021 36
Slide 37: Balance sheet
Goodman Property Trust Interim Result 2022 Balance sheet As at 30 September 2021 37
Slide 38: Cash flows
Goodman Property Trust Interim Result 2022 Cash flows For the six months ended 30 September 2021 38
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