GARDA Property Group · ASX:GDF
GARDA Property — H1 2024 Earnings Presentation
29 slides from GARDA Property's earnings presentation, Feb 8, 2024
Slide 1: Interim Results Presentation | December 2023
For personal use only GARDA PROPERTY GROUP (ASX: GDF) Interim Results Presentation | December 2023
Slide 2: Disclaimer
DISCLAIMER This presentation (Presentation) has been prepared on behalf of GARDA Property Group (GDF or Group or GARDA), comprising GARDA Holdings Limited (GHL) and its controlled entities and GARDA Capital Limited (ACN 095 039 366) (AFSL 246714) (GCL) as responsible entity of the GARDA Diversified
Slide 3: Group Overview
GROUP OVERVIEW For personal use only Real Estate Platform Financial Position $495 Million1 $1.73 PORTFOLIO VALUE PRO-FORMA NTA PER SECURITY 83% 30.1%3 INDUSTRIAL PORTFOLIO PRO-FORMA GEARING 5.2 Years2 6.3 CPS PRO-FORMA WALE FY24 DPS GUIDANCE ~145,000m² 5.2%4 DEVELOPMENT PIPELINE FORECAST FY24 DISTRI
Slide 4: Highlights
HIGHLIGHTS FINANCIAL PROPERTY For personal use only 1▪ Distributions are reaffirmed at 6.3cps: 1▪ GARDA’s portfolio is comprised entirely of its high quality, established Brisbane industrial portfolio of 115,000m² NLA, and the Cairns Corporate ▪ A full year payout ratio of approximately 105% of FFO
Slide 5: Key Outcomes
KEY OUTCOMES Portfolio composition Projects and Revenue Growth For personal use only ▪ 11 of 12 properties, representing 83% by value, are industrial assets. ▪ Richlands project completed and the 10-year lease commenced on ▪ Industrial concentration increases with delivery of development 22 December
Slide 6: GARDA Performance
GARDA PERFORMANCE 1 83% (by value) Industrial Portfolio 2 ASX discount to NTA (%) Peer 1 (Industrial) Peer 2 (Industrial) GARDA Peer 3 (Office) Peer 4 (Office) For personal use only 0% Industrial CCT -10% -13% -14% -20% 83% 17% -30% -30% -40% -43% -50% -45% 3 DPS (cents) | Payout Ratio (%) 4 NTA per
Slide 7: Net Tangible Assets Reconciliation
NET TANGIBLE ASSETS RECONCILIATION NTA RESET FOLLOWING MELBOURNE OFFICE PORTFOLIO SALE For personal use only 7
Slide 8: Valuation Overview
VALUATION OVERVIEW 5.01% 7.75% 5.62% INDUSTRIAL CAP RATE CAIRNS CAP RATE PORTFOLIO CAP RATE For personal use only Valuation Property Sector Valuation Cap Rate Movement Date ($m) (%) (%) ▪ Six properties (approximately 50% by value) were independently valued for Dec-23 Acacia Ridge, 69 Peterkin St In
Slide 9: Lease Expiry Profile
LEASE EXPIRY PROFILE LIMITED AT RISK REVENUE At Risk Income For personal use only ▪ FY25 expiry is isolated to the strongly performing Cairns Corporate Tower, GARDA’s only office asset, where 3,444m² of NLA is due to expire across seven tenancies. ▪ The primary focus is the renewal of two full floor
Slide 10: Melbourne Office Assets Sold
MELBOURNE OFFICE ASSETS SOLD For personal use only Exited Melbourne Office Portfolio ▪ Following the initial Melbourne office divestment in April 2023 where Box Hill was sold for $40.3 million, GARDA has 8-10 Cato Street, Hawthorn East successfully sold its remaining three Melbourne office propertie
Slide 11: Industrial Development
For personal use only INDUSTRIAL DEVELOPMENT
Slide 12: 56-72 Bandara St, Richlands
56-72 BANDARA ST, RICHLANDS CONSTRUCTION COMPLETED IN DECEMBER 2023 For personal use only Construction of the 12,912m² industrial facility completed in December 2023. VALUATION SUMMARY Ausdeck has commenced its 10-year lease, contributing $1.8 million ($140/m²) in Valuation Date 31 December 2023 ann
Slide 13: 'Build to Own' Industrial Development Pipeline
‘BUILD TO OWN’ INDUSTRIAL DEVELOPMENT PIPELINE ~ 145,000M² INDUSTRIAL PIPELINE WITH ACCESS TO MARKET RENTS AS CONSTRUCTION IS COMPLETED For personal use only Morningside 5,700 ▪ Asset extension Acacia Ridge Stage 1 ▪ Asset extension 5,684 Wacol, Pinnacle East ▪ Strong tenant inquiry for rear buildin
Slide 14: Industrial Development Pipeline: Project Capital Requirements
INDUSTRIAL DEVELOPMENT PIPELINE PROJECT CAPITAL REQUIREMENTS Immediate development FY24 FY25 Bulk and civil works prior to development of built form Dec 23 Mar 24 Jun 24 Sep 24 Dec 24 For personal use only Acacia Ridge ▪ Early works completed. ▪ Construction of the 15,000m² industrial facility is ex
Slide 15: 38-56 Peterkin Street, Acacia Ridge
38-56 PETERKIN STREET ACACIA RIDGE, QUEENSLAND ASSET SUMMARY Land Area (m²) 34,275 PROJECT OVERVIEW Lettable Area (m²) 15,000 For personal use only ▪ An early works program has been completed on site including servicing the site and Occupancy (by income) ‘on completion’ n/a construction of retaining
Slide 16: 109-135 Boundary Road, North Lakes
109-135 BOUNDARY ROAD NORTH LAKES, QUEENSLAND ‘AS IS’ VALUATION SUMMARY For personal use only Independent Valuation Date 31 Dec 2023 Independent Gross Realisation Value $116,850,000 Directors’ Valuation – 31 December 2023 $87,200,0001 Total Useable Land (m²) 250,950 Value ($) per square metre of use
Slide 17: 109-135 Boundary Road, North Lakes
109-135 BOUNDARY ROAD NORTH LAKES, QUEENSLAND North-west aspect render of Lot 2 built form. Lot 2 is expected to provide approximately 23,280m² of NLA, across 6 – 8 tenancies. Four For personal use only tenancies of approximately 3,000m² and two of approximately 5,500m² (capable of subdivision). Lot
Slide 18: 109-135 Boundary Road, North Lakes
109-135 BOUNDARY ROAD NORTH LAKES, QUEENSLAND For personal use only A Site view with access road trimmed in foreground B 800 metre retaining wall construction progress C Lot 4 building pad level set Bulk and Civil Works Update ▪ Bulk earth works are now largely complete with a total of 460,000m³ of
Slide 19: Pinnacle East, Wacol
PINNACLE EAST, WACOL 12 MONTH CONSTRUCTION DURATION For personal use only Western Corridor Development ▪ Pinnacle West, a 17,525m² industrial complex across three buildings reached practical competition in June 2023. ▪ Pinnacle East, Wacol is a 4.1 hectare site adjacent to Pinnacle West, located at
Slide 20: Property Portfolio
For personal use only PROPERTY PORTFOLIO 41 Bivouac Pl, Wacol
Slide 21: Property Portfolio: Integrated Industrial Property Platform
PROPERTY PORTFOLIO INTEGRATED INDUSTRIAL PROPERTY PLATFORM Sector (by Value) Geography (by value) For personal use only CCT Industrial Cairns Brisbane 17% 17% 83% 83% Tenant Property Gross Income (%) Volvo Group Wacol 13.4% Komatsu Morningside 9.5% Ausdeck Richlands 8.7% Pinkenba Operations Pinkenba
Slide 22: Finance
For personal use only FINANCE 41 Bivouac Pl, Wacol
Slide 23: Capital Management
CAPITAL MANAGEMENT CONSERVATIVE GEARING LEVELS | VARIABLE RATES REACHED THEIR PEAK? Hedge Profile Key Debt Metrics – 31 December 2023 Fixed Variable For personal use only Total debt facilities $290.0 million Drawn Debt 1 $187.2 million ▪ At 31 December 2023 the facility was drawn to $247.4 million b
Slide 24: Guidance
GUIDANCE PROJECT DELIVERY KEY TO REVENUE GROWTH FY24 Distribution and FFO Guidance For personal use only ▪ FY24 distribution guidance of $0.063 per security, paid in $0.01575 quarterly payments. ▪ The 7 February 2024 ASX closing price of $1.21 per security reflects a distribution yield of 5.2% and 3
Slide 25: Funds From Operations
FUNDS FROM OPERATIONS HY24 HY23 For personal use only $000 $000 Net loss after tax1 (34,612) (741) Adjustments for non-cash items and one-off items: Valuations – (deduct increases) / add back decreases: Investment properties 32,997 2,473 Derivatives 3,587 (49) Asset disposals – (deduct gains) / add
Slide 26: Income Statement
INCOME STATEMENT HY24 HY23 $000 $000 For personal use only Revenue Revenue from ordinary activities 16,708 16,016 Other income 286 161 Net gain in fair value of financial instruments - 49 Net gain in fair value of investment properties - - Total revenue and other income 16,994 16,226 Expenses 69 Pet
Slide 27: Balance Sheet
BALANCE SHEET PRO FORMA Pro Forma1 Movements 31 Dec 2023 30 Jun 2023 $000 $000 $000 $000 ❶ Receivables and other assets largely comprises commercial secured loans provided to external third parties. For personal use only Current assets Cash and cash equivalents 29,084 12,000 17,084 13,164 ❷ The decr
Slide 28: Glossary
GLOSSARY DEFINITIONS AND EXPLANATIONS Item / Term Definition / Explanation For personal use only CCT Cairns Corporate Tower office building located at 15 Lake Street, Cairns. DPS Distribution per security. EBIT Earnings before income tax as defined by GARDA’s Syndicated Facility Agreement. Calculate
Slide 29: For personal use only
For personal use only w: gardaproperty.com.au e: info@gardaproperty.com.au Level 21, 12 Creek Street, Brisbane QLD 4000 p: +61 7 3002 5300 GPO Box 5270, Brisbane QLD 4001