Goodman Group · ASX:GMG

Goodman — Goodman Property Trust — H1 FY2021 Earnings Presentation

36 slides from Goodman's earnings presentation, Nov 23, 2020

  1. Slide 1: Goodman Property Trust Interim Result 2021

    Goodman Property Trust Interim Result 2021 1

  2. Slide 2: Contents

    Goodman Property Trust Interim Result 2021 Contents 03 Overview 05 Financial result 12 Capital management 15 Investment portfolio 23 Development programme 27 Outlook 31 Appendix Presented by: John Dakin Chief Executive Officer + James Spence Director - Investment Management + Andy Eakin Chief Financ

  3. Slide 3: Overview

    Goodman Property Trust Interim Result 2021 Overview Gateway warehouses, Highbrook Business Park 3

  4. Slide 4: Overview

    Goodman Property Trust Interim Result 2021 Overview Portfolio metrics remain strong following 94,393 sqm of leasing  Occupancy of 99.7%, retention rate of 76%1, WALE of 5.4 years $108 million of investment commitments in line with strategy to invest in the Auckland industrial market  Acquisition o

  5. Slide 5: Financial results

    Goodman Property Trust Interim Result 2021 Financial results The Gate Industry Park, Penrose 5

  6. Slide 6: Financial highlights

    Goodman Property Goodman PropertyTrust TrustInterim Result Interim 2021 Result 2021 Financial highlights $186.4m $140.2m 182.4cpu 21.5% Profit before tax Portfolio revaluation Net tangible asset backing Loan-to-value ratio1 4.2% Net property income growth2 3.11cpu Cash earnings3 2.65cpu 1H FY21 dist

  7. Slide 7: Net property income

    Goodman Property Trust Interim Result 2021 Net property income Net property income bridge ($m)  Net property income up $3.0 million or 4.2% for 78.0 1H (~7% excluding the impact of rental 77.0 abatements) 76.0 +0.1  $2.2 million of rental abatement impact1, with +1.5 -2.2 rental relief focussed on

  8. Slide 8: Cash earnings

    Goodman Property Trust Interim Result 2021 Cash earnings Cash earnings summary ($m) 1H21 1H20  1H FY21 cash earnings of 3.11 cents per unit Operating earnings before tax1 56.0 53.7  Distributions of 2.65 cents per unit for the period Tax on operating earnings (9.6) (9.0) represents 85.2% of cash e

  9. Slide 9: Capital growth

    Goodman Property Trust Interim Result 2021 Capital growth Net tangible assets (cents per unit)  NTA increased 9.7 cents per unit (5.6%) in the first 190.0 six months of FY21 to 182.4 cents per unit  4.4% increase in portfolio value main contributor 185.0  $7.4 million revaluation gains on develop

  10. Slide 10: Investment property

    Goodman Property Trust Interim Result 2021 Investment property Investment property ($m)  Total investment property increased by 3,400 $268.3 million to $3.3 billion 3,342.3 +2.9 +9.8 54.5  Acquisitions and developments adding 3,300 $125.7 million +129.9 69.7 3,200  Interests in leasehold land val

  11. Slide 11: Gearing

    Goodman Property Trust Interim Result 2021 Gearing Loan to value ratio1 (LVR)  GMT continues to be conservatively 23% leveraged, providing significant resilience and capacity for both 22% 22.3% +0.8% acquisitions and investment in its +0.8% -0.9% +0.5% 21.5% development pipeline 21%  LVR of 21.5%

  12. Slide 12: Capital management

    Goodman Property Trust Interim Result 2021 Capital management Highbrook Business Park 12

  13. Slide 13: Managing funding risk

    Goodman Property Trust Interim Result 2021 Managing funding risk Maturity profile1 ($m)  Funding diversity extended through issuance of two 250 tranches of wholesale bonds: + $50 million of 8 year 2.262% fixed rate bonds 200 + $150 million of 10 year 2.559% fixed rate bonds 100 100 100  FY22 bank

  14. Slide 14: Managing interest rate risk

    Goodman Property Trust Interim Result 2021 Managing interest rate risk Hedging profile  Effective hedging levels increased through issuance of 8 and 10 year 100% wholesale bonds at underlying rates of ~40 bps and ~56 bps 90%  Following wholesale bond issuance, hedge levels managed through 80% clos

  15. Slide 15: Investment portfolio

    Goodman Property Trust Interim Result 2021 Investment portfolio Courier Post, Highbrook Business Park 15

  16. Slide 16: GMT's property portfolio

    Goodman Property Trust Interim Result 2021 GMT’s property portfolio $3.3bn Property portfolio 1.1m sqm Net lettable area 11 Estates 16

  17. Slide 17: Portfolio metrics

    Goodman Property Trust Interim Result 2021 Portfolio metrics 99.7% Occupancy 100% Auckland warehouse and logistics weighting 5.4 years Weighted average lease term $46.3m Development completions1 1.6% Land weighting 1 Valuation upon completion MetroBox, Savill Link 17

  18. Slide 18: Portfolio leasing

    Goodman Property Trust Interim Result 2021 Portfolio leasing Lease expiry profile (% of portfolio income)  Occupancy of 99.7% following leasing for the year 25% across 94,393 sqm (8.8% of portfolio): 20% + 90,547 sqm with existing customers + 9.7% rental increase achieved2 with incentives 15% avera

  19. Slide 19: Customer base

    Goodman Property Trust Interim Result 2021 Customer base Top ten customers (% of portfolio income)  Top 10 customers account for 32% of portfolio income, generally NZ Post focused on storage, logistics and distribution DHL OfficeMax Fletcher Building Industry exposure (% of income) Coda T&G Global

  20. Slide 20: Customers

    Goodman Property Trust Interim Result 2021 Customers  COVID-19 continues to disrupt markets  Approximately 40% of GMT’s customers (70% by income), were utilising their premises to some degree through the Alert Level 4 restrictions. Over 90% of customers (by income) were open to some extent from Al

  21. Slide 21: Savill Link extension

    Goodman Property Trust Interim Result 2021 Savill Link extension Strategic investment in proven logistics location $70.0m Purchase price 13.3ha Land area Savill Link Acquisition properties 21

  22. Slide 22: Portfolio valuation

    Goodman Property Trust Interim Result 2021 Portfolio valuation Portfolio summary as at 30 September 2020 Valuation $m Cap rate Initial Yield WALE years Occupancy Net lettable area sqm Highbrook Business Park 1,609.3 5.0% 4.9% 6.3 99% 453,458 Savill Link 390.4 5.0% 4.9% 6.0 100% 129,466 M20 Business

  23. Slide 23: Development programme

    Goodman Property Trust Interim Result 2021 Development programme El Kobar Units, Highbrook Business Park 23

  24. Slide 24: Completed developments

    Goodman Property Trust Interim Result 2021 Completed developments GMT saw minimal disruption to its construction timetable due to COVID-19, completing two projects totalling 12,895 sqm since 31 March 2020  7,401 sqm extension developed on a pre-committed basis for OfficeMax  Savill Drive Units (5,

  25. Slide 25: Current development programme

    Goodman Property Trust Interim Result 2021 Current development programme Work-in-progress summary Estate Total project cost Lettable area Expected Leased  Current development programme consists of 30,649 $m sqm completion date1 sqm across six projects at Highbrook, Westney and Highbrook 33.4 8,676

  26. Slide 26: Work-in-progress

    Goodman Property Trust Interim Result 2021 Work-in-progress Waiouru Point, Highbrook Business Park 4,416 sqm Westney 4,500, Westney Industry Park 4,970 sqm M20 9,000, M20 Business Park 9,630 sqm 68 Westney Road, Westney Industry Park 3,421 sqm 26

  27. Slide 27: Outlook

    Goodman Property Trust Interim Result 2021 Outlook M20 Business Park 27

  28. Slide 28: Outlook

    Goodman Property Trust Interim Result 2021 Outlook  The COVID-19 pandemic has changed the global landscape and is causing a rapid and pronounced change in the way we live, work, and consume  Recent events have highlighted the important role a secure and efficient supply chain plays in the orderly

  29. Slide 29: Questions

    Goodman Property Trust Interim Result 2021 Questions Savill Link 29

  30. Slide 30: Thank you

    Goodman Property Trust Interim Result 2021 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

  31. Slide 31: Appendix

    Goodman Property Trust Interim Result 2021 Appendix Highbrook Drive, Highbrook Business Park 31

  32. Slide 32: Work-in-progress

    Goodman Property Trust Interim Result 2021 Work-in-progress Total project Lettable Completion Development Address Estate cost area Leased date $m sqm 68 Westney Road 68 Westney Road, Mangere Westney Industry Park 6.6 3,421 Oct-20 100% Waiouru Point 4-6 Waiouru Road, East Tamaki Highbrook Business Pa

  33. Slide 33: Completed developments

    Goodman Property Trust Interim Result 2021 Completed developments OfficeMax Expansion Estate Highbrook Business Park Completion September 2020 NLA 7,401 sqm Savill Drive Units Estate Savill Link Completion May 2020 Area 5,493 sqm 33

  34. Slide 34: Profit or loss

    Goodman Property Trust Interim Result 2021 Profit or loss 34

  35. Slide 35: Balance sheet

    Goodman Property Trust Interim Result 2021 Balance sheet 35

  36. Slide 36: Cash flows

    Goodman Property Trust Interim Result 2021 Cash flows 36

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