Gpt Group · ASX:GPT
Gpt — The GPT Group — Shareholder Meeting (May 2009)
82 slides from Gpt's shareholder meeting presentation, May 25, 2009
Slide 1: Meeting of GPT Securityholders - Chairman's Address
MEETING OF GPT SECURITYHOLDERS On 25 May 2009 at 2:00pm Chairman’s Address: Good afternoon ladies and gentlemen. Welcome to the Annual General Meeting of the GPT Group, I am pleased that you were all able to join us today. My name is Peter Joseph and I am the Chairman of the GPT Group. This meeting
Slide 2: Chairman's address: market conditions and meeting order
And, while it is true that all Real Estate Investment Trusts have been hit hard by the global crisis, unfortunately, for GPT, the continuing overhang of the JV has been unequivocally negative. Securityholders have suffered as a result, and for that we owe you, GPT’s investors, our sincere apologies.
Slide 3: Chairman's address: asset sales and REIT sector performance
(2) banks’ unwillingness to lend has meant that asset sales are very difficult to achieve, as prospective buyers are unable to finance their purchases. GPT reported a substantial accounting loss for the 2008 year, as noted in the financial statements that you have all received. However, this result
Slide 4: New CEO and board renewal
Finally, we have appointed a new CEO, Michael Cameron, who comes to us with a very strong background in both operational and financial management. His previous roles include CFO positions with St George Bank, CBA and Lend Lease. Michael has already proven to be a very strong leader and outstanding a
Slide 5: Exiting offshore investments and equity raisings
As we exit our offshore investments, we will also simplify our structure, reduce costs, and reduce our exposure to currency volatility. The second strategic initiative that I should comment further on is our decision to raise equity twice in the course of the past twelve months. Once again we recogn
Slide 6: Where is GPT now?
Where is GPT now? Following our most recent capital raising, we have • amongst the strongest balance sheets of the AREIT sector, with debt to assets at 21% on a proforma basis • liquidity to enable us to meet all commitments through to December 2010, including the expiry of over $2.4bn of debt throu
Slide 7: CEO's Address
CEO’s Address: Good afternoon everyone. I have now been in the CEO role for 25 days. Can I start by saying it is an absolute honour and privilege to be appointed to the role and it’s a responsibility that I take very seriously. GPT is an outstanding organisation with a 38 year history and a great cu
Slide 8: Results for 2008
My first few weeks have also been an opportunity for me to evaluate the capabilities of the organisation and begin to set the tone and direction for the future. Results Let me now turn to the results for 2008. • The Realised Operating income for the year was in line with the October forecast at $468
Slide 9: Office, industrial and funds management
Office The office portfolio consisting of interests in 20 buildings, with over 600,000 square metres of prime quality space, is also one of Australia’s largest. • Comparable income growth for the portfolio was 7.8%, • Over 92,000 square metres, which is equivalent to more than the entire space in th
Slide 10: Developments, awards and sustainability
Reflecting current market conditions GPT has only two significant development projects underway – Charlestown Square in Newcastle and One One One Eagle Street in Brisbane. It is unlikely that we will commence any other projects until the market conditions are favourable. • Capital required for these
Slide 11: Other investments and joint venture exit
• GPT Halverton and the Hamburg Trust both located in Europe, and • The Joint Venture Fund with Babcock & Brown. GPT is currently in the process of transitioning the management of the Joint Venture assets to GPT and we are now seeking to accelerate a full exit from the Joint Venture. Since December
Slide 12: Strategy and outlook
Strategy GPT’s strategy has been refocused onto the Group’s domestic business – the ownership, management and development of quality Australian real estate, which already forms the bulk of the Group’s investments and income. As we have recently stated, GPT will, over time, exit the majority of its n
Slide 13: Stronger balance sheet and conclusion
As a result of strengthening the balance sheet, we now have more bargaining power with the banks, we are no longer seen as a forced seller by potential acquirers of our non-core assets, and we have less constraints on being able to accelerate an exit from our Babcock & Brown Joint Venture. We are no
Slide 14: Annual General Meeting May 2009
ANNUAL GENERAL MEETING 25 May 2009
Slide 15: Donna Byrne
DONNA BYRNE Head of Investor Relations and Corporate Affairs
Slide 16: Peter Joseph, Chairman
PETER JOSEPH Chairman The GPT Group
Slide 17: Operating Environment
Operating Environment Well publicised crisis within the global banking sector Western economies are generally in, or moving into, recession Equities prices globally have fallen Real estate sector – Asset values under pressure – Capital markets debt not been available – Banks wishing to reduc
Slide 18: Relative Price Performance
Relative Price Performance Jan 08 – May 09 Source: IRESS as at 11 May 2009. 5
Slide 19: Relative Price Performance
Relative Price Performance Jan 08 – May 09 Source: Bloomberg as at 11 May 2009. Note: S&P/ASX 200 A-REIT Index (Australia); S&P 500 REITS Index (US); FTSE 350 Real Estate Index (UK); TSE REIT Index (Japan) 6
Slide 20: GPT's Responses
GPT’s Responses Clear strategy to return to core strengths – Own, manage and develop quality Australian real estate Non-core asset sales to improve liquidity and reduce leverage Two equity raisings since mid 2008 New CEO and Board changes 7
Slide 21: GPT Post May 2009 Capital Raising
GPT Post May 2009 Capital Raising Pro forma balance sheet leverage 21% – Amongst the lowest of the A-REITs Liquidity to fully fund all commitments through to December 2010 On “positive watch” from the major credit ratings agencies Clear strategy to accelerate exit from the Joint Venture Hi
Slide 22: Peter Joseph, Chairman
PETER JOSEPH Chairman The GPT Group
Slide 23: Michael Cameron, CEO
MICHAEL CAMERON Chief Executive Officer and Managing Director
Slide 24: 2008 Results Overview
2008 Results Overview Realised operating income $468.8 million – In line with October 2008 forecast NTA per security $1.43 Distribution per security 17.7 cents Total assets $13 billion Headline gearing 33.7% 11
Slide 25: Reconciliation: Realised Operating Income
2008 Results Reconciliation: Realised Operating Income 2008 ($m) Realised Operating Income 468.8 Changes in fair value of assets (1,122.8) Foreign Exchange movement (544.6) Derivative movement (839.0) Impairment expenses (1,127.1) Other items (88.8) Net profit/(loss) after tax (3,253.5) 12
Slide 26: Australian Retail Portfolio
2008 Results Australian Retail Portfolio Comparable income up 4.5%(1) Comparable total centre sales growth 3.5%(2) Occupancy over 99%(2) Close to 200 million customer visits (1) GPT owned assets only. (2) GPT and GWSCF owned assets. 13
Slide 27: Australian Office Portfolio
2008 Results Australian Office Portfolio Comparable income up 7.8%(1) Portfolio occupancy 99%(2) Weighted average lease term 5.2 years 92,000 sqm leased (1) GPT owned assets only. (2) Committed space including rental guarantees. 14
Slide 28: Australian Industrial/Business Park Portfolio
2008 Results Australian Industrial/ Business Park Portfolio Comparable income up 3.8% Portfolio occupancy 100% Average lease term 7.2 years 15
Slide 29: Australian Funds Management
2008 Results Australian Funds Management Assets under management $5.3 billion – GWOF $3.2 billion – GWSCF $2.1 billion Low debt to total assets – Office Fund 18% – Shopping Centre Fund 9% 16
Slide 30: Developments Underway
Developments One One One Eagle Street, Brisbane Artist’s impression Underway Charlestown Square commenced January 2008 – Forecast completion - late 2010 One One One Eagle Street commenced May 2008 – Profit achieved on sale of two thirds of project – Forecast completion - late 2011 17
Slide 31: Rouse Hill Town Centre
Dow Jones. Sustainability Indexes Member 2008/09 o Banksia environmental BEST DunLvers People’s Choice BOSS so Winner 2008 Rouse Hill Town Centre
Slide 32: Other Investments
OTHER INVESTMENTS
Slide 33: Realised Operating Income Core vs Non Core
Realised Operating Income Core vs Non Core Movement Dec 07 to Dec 08 % at 31 December 2008 CORE +5% -23% NON CORE 20
Slide 34: Liquidity
Liquidity Refinancing requirement to Capital Needs 2009 to end 2010 December 2010 secured $ billion Then, no material debt Proforma cash balance 0.2 maturities until October 2012 Equity raising 1.7 Assumes Undrawn debt facilities 1.4 Current Liquidity 3.3 – Zero refinancing Debt expiries 2.4 –
Slide 35: Strategic Focus Australian Real Estate
Strategic Focus Australian Real Estate 22
Slide 36: Outlook
Outlook Globally real estate values remain under pressure Core domestic business demonstrating resilience – High occupancy (all portfolios) – Long lease terms (office/industrial) Distribution guidance FY09 4.5 cents per security Strong balance sheet post capital raising Focus - owning, man
Slide 37: Annual General Meeting May 2009
ANNUAL GENERAL MEETING 25 May 2009
Slide 38: Peter Joseph, Chairman
PETER JOSEPH Chairman The GPT Group
Slide 39: Director's Report and Financial Statements
cM 1 ~DIRECTOR’S REPORT =a rINANCIAL = et MENS
Slide 40: Item: Resolutions
— ITEM 2 _ RESOLUTIONS
Slide 41: Resolution
ESOLUTION 1
Slide 42: Eric Goodwin, Director
ERIC GOODWIN Director The GPT Group
Slide 43: Discussion
DISCUSSION fight
Slide 44: Voting Card
Voting Card GPT MANAGEMENT HOLDINGS LIMITED ACN 113 510 188 GENERAL PROPERTY TRUST ARSN 090 110 357 iPT GROUP) TheGPTGroup; «Te SETCROUE) ANNUAL GENERAL MEETING Monday, 25 May 2009 SECURITYHOLDER / PROXYHOLDER ADMISSION / VOTING CARD INN 0000 POLL VOTING In a poll, please mark a box below to indicat
Slide 45: Proxies Resolution 1
PROXIES Resolution 1 Number of Votes For Against Open* 2,618,598,005 2,471,863,750 124,102,516 22,631,739 * Includes 17,068,244 votes in favour of the Chairman 32
Slide 46: Resolution 1: Re-election of Mr Eric Goodwin
RESOLUTION 1 Re-election of Mr Eric Goodwin as a Director To consider and, if thought fit, pass the following ordinary resolution of the Company: – “That Mr Eric Goodwin, who retires in accordance with rule 49 of the Company’s Constitution, being eligible, be re-elected as a Director of the Compan
Slide 47: Resolution
ESOLUTION 2
Slide 48: Lim Swe Guan, Director
LIM SWE GUAN Director The GPT Group
Slide 49: Discussion
DISCUSSION Slee |
Slide 50: Proxies Resolution 2
PROXIES Resolution 2 Number of Votes For Against Open* 2,618,793,966 2,577,344,260 18,857,512 22,592,194 * Includes 17,012,816 votes in favour of the Chairman 37
Slide 51: Resolution 2: Election of Mr Lim Swe Guan
RESOLUTION 2 Election of Mr Lim Swe Guan as a Director To consider and, if thought fit, pass the following ordinary resolution of the Company: – "That Mr Lim Swe Guan, who ceases to hold office in accordance with rule 48(d) of the Company’s Constitution, being eligible, be elected as a Director of
Slide 52: Remuneration Report Resolution
2s EMUN ESOLUTION 3 ERATION RE
Slide 53: Ian Martin, Chairman Nomination and Remuneration Committee
Ian Martin Chairman Nomination and Remuneration Committee
Slide 54: Discussion
DISCUSSION Slee |
Slide 55: Proxies Resolution 3
PROXIES Resolution 3 Number of Votes For Against Open* 2,616,398,630 1,799,515,723 793,834,313 23,048,594 * Includes 17,502,921 votes in favour of the Chairman 42
Slide 56: Resolution 3: Remuneration Report
RESOLUTION 3 Remuneration Report To consider and, if thought fit, pass the following non- binding ordinary resolution of the Company: – "That the Remuneration Report for the year ended 31 December 2008 be adopted." * Note: This Resolution is advisory only and does not bind the Company. 43
Slide 57: Resolution
ESOLUTION 4
Slide 58: Discussion
DISCUSSION Slee |
Slide 59: Proxies Resolution 4
PROXIES Resolution 4 Company Number of Votes For Against Open* 2,617,173,823 2,504,224,686 89,534,204 23,414,933 Trust Number of Votes For Against Open* 2,876,833,149 2,763,884,012 89,534,204 23,414,933 * Includes 17,803,654 votes in favour of the Chairman 46
Slide 60: Resolution 4: Proportional Takeover Provisions
RESOLUTION 4 Proportional Takeover Provisions To consider and, if thought fit, pass the following resolutions as special resolutions of the Company and the Trust: – “That the Constitutions of the Company and the Trust be amended by: – in case of the Constitution of the Company – deleting rules 79
Slide 61: Resolution
ESOLUTION 5
Slide 62: Discussion
DISCUSSION Slee |
Slide 63: Proxies Resolution 5
PROXIES Resolution 5 Number of Votes For Against Open* 2,617,489,025 2,590,900,322 3,202,287 23,386,416 * Includes 17,748,524 votes in favour of the Chairman 50
Slide 64: Resolution 5: Illegible Proxy Forms
RESOLUTION 5 Illegible Proxy Forms To consider and, if thought fit, pass the resolution as a special resolution of the Company: – “That the Constitution of the Company be amended by inserting a new rule 46(e) in the form set out in the explanatory memorandum to this Notice of Meeting.” 51
Slide 65: Resolution
ESOLUTION 6
Slide 66: Discussion
DISCUSSION Slee |
Slide 67: Proxies Resolution 6
PROXIES Resolution 6 Trust Number of Votes For Against Open* 2,876,562,639 2,833,511,460 19,144,094 23,907,085 * Includes 18,280,264 votes in favour of the Chairman 54
Slide 68: Resolution 6: Issue of Performance Rights
RESOLUTION 6 Issue of Performance Rights To consider and, if thought fit, pass the following special resolution of the Trust: – "That the Constitution of the Trust be amended by inserting a new rule 5.13 in the form set out in the Explanatory Memorandum to this Notice of Meeting, and renumbering t
Slide 69: Resolution
ESOLUTION 7
Slide 70: Discussion
DISCUSSION Slee |
Slide 71: Proxies Resolution 7
PROXIES Resolution 7 Company Number of Votes For Against Open* 2,604,446,578 2,571,171,010 21,290,955 11,984,613 Trust Number of Votes For Against Open* 2,864,105,904 2,830,830,336 21,290,955 11,984,613 * Includes 6,382,199 votes in favour of the Chairman 58
Slide 72: Resolution 7: GPT Group Stapled Security Rights Plan
RESOLUTION 7 Approval of the GPT Group Stapled Security Rights Plan To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company and of the Trust: – “That the GPT Group Stapled Security Rights Plan (the Plan), the terms and conditions of which are summari
Slide 73: Resolution 8.1
ESOLUTION 38.1
Slide 74: Discussion
DISCUSSION Slee |
Slide 75: Proxies Resolution 8.1
PROXIES Resolution 8.1 Number of Votes For Against Open* 2,261,608,025 2,238,962,002 10,555,028 12,090,995 * Includes 6,467,336 votes in favour of the Chairman 62
Slide 76: Resolution 8.1: Stapled Securities issued to Reco 175LS
RESOLUTION 8.1 Approval of Stapled Securities issued to Reco 175LS Aust Pte Limited To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company and the Trust: – “That approval is given, for the purposes of ASX Listing Rule 7.4 and for all other purposes,
Slide 77: Resolution 8.2
ESOLUTION 8.2
Slide 78: Discussion
DISCUSSION Slee |
Slide 79: Proxies Resolution 8.2
PROXIES Resolution 8.2 Number of Votes For Against Open* 2,261,468,791 2,238,334,788 11,014,934 12,119,069 * Includes 6,495,410 votes in favour of the Chairman 66
Slide 80: Resolution 8.2: Exchangeable Securities issued to Reco 175LS
RESOLUTION 8.2 Approval of Exchangeable Securities issued to Reco 175LS Aust Pte Limited To consider and, if thought fit, pass the following ordinary resolutions of the Company and the Trust: – “That approval is given, for the purposes of ASX Listing Rule 7.4 and for all other purposes, for the is
Slide 81: Discussion
DISCUSSION Slee |
Slide 82: Qa J o) = o o) o o =
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