Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — FY2015 Earnings Presentation
49 slides from Growthpoint Properties Australia's earnings presentation, Aug 17, 2015
Slide 1: Annual Results Presentation for the year ended 30 June 2015
Continued growth, For personal use only consistent strategy & superior returns Annual Results Presentation For the year ended 30 June 2015 17 August 2015 Growthpoint Properties Australia Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 9
Slide 2: Important information
Important information Disclaimer pro forma historical financial information included in this Presentation Forward-looking statements including projections, indications or For personal use only This presentation and its appendices (“Presentation”) is dated 17 August does not purport to be in complian
Slide 3: Contents
Contents Executive For personal use only Management Team FY15 Overview 4 Debt Management Overview of Growthpoint 5 – Gearing 28 Key results for FY15 – Interest rate hedging 29 – Strategy and Performance 6 Operating expenses 30 – Property Portfolio 7 Five year performance summary 31 – Financial Manag
Slide 4: FY15 Overview
For personal use only FY15 Overview 10-12 Mort Street, Canberra, ACT
Slide 5: Overview of Growthpoint
Overview of Growthpoint Our “pure landlord” investment philosophy For personal use only What is Growthpoint? 1 100% investment Growthpoint is an ASX-listed landlord investing in Australian office, industrial and in Australia retail real property with a portfolio currently worth $2.4 billion. All of
Slide 6: Key results for FY15: Strategy and Performance
Key results for FY15: Strategy and Performance For personal use only Securityholder returns 21.3%p.a. 36.4% Total Securityholder return FY15 total Securityholder for 5 years to 30 June 2015 , 1 return1 7.1% above sector return of 14.2%2 Second highest A-REIT 21.2cps 20.5cps FY15 distributable FY16 d
Slide 7: Key results for FY15: Property Portfolio
Key results for FY15: Property Portfolio For personal use only Over Property portfolio valued at 69,000m2 $2.4B as at 30 June 2015. of new and extended leasing during FY15 14.3% above 30 June 2014 Out of a 1,050,611m² portfolio $119.5m 6.7yrs 1 of property acquired WALE during FY15 $186m 7.3% valuat
Slide 8: Key results for FY15: Financial Management
Key results for FY15: Financial Management For personal use only FY15 distribution Increase in net tangible guidance of assets (NTA) per security of 19.7cps 14.8% achieved over FY15 from $2.16 to $2.48 Gearing reduced to 4.7yrs 37.0% from 40.9% at 30 June 2014 Weighted average debt term at 30 June 2
Slide 9: Property Portfolio
For personal use only Property Portfolio 1 Charles Street, Parramatta, NSW
Slide 10: Portfolio overview
Portfolio overview For personal use only Key metrics for the five years ended 30 June 2015 FY151 FY14 FY13 FY12 FY11 No. of properties 53 51 44 42 37 Total value $m 2,372.5 2,093.7 1,694.5 1,634.8 1,244.9 Occupancy % 97 98 98 99 100 Total lettable area m² 1,050,611 1,036,740 917,989 900,676 844,037
Slide 11: Portfolio overview (cont.)
Portfolio overview (cont.) Diversified by sector Quality tenants For personal use only by property value as at 30 June 2015 by gross income as at 30 June 2015 Top ten tenants Office 51% Listed company 58% by passing rent as at 30 June 2015 Industrial 49% Government owned 22% % WALE Private company &
Slide 12: Leasing
Leasing Leases completed in FY15 For personal use only Address Sector Tenant Start date Term Annual rent NLA Car Parks (yrs) increases (m²) (%) 1231-1241 Sandgate Road Nundah QLD Office Zambrero Property Group Q1, FY15 7.0 Fixed 3.50 70 - CB1, 22 Cordelia Street South Brisbane QLD Office Integrated
Slide 13: Leasing (cont.)
Leasing (cont.) Leases completed since 30 June 2015 For personal use only Address Sector Tenant Start date Term Annual rent NLA Car Parks (yrs) increases (m²) (%) 333 Ann Street Brisbane QLD Office QER Pty Ltd Q1, FY16 5.4 Fixed 4.00 679 5 333 Ann Street Brisbane QLD Office Prosperity Services Q1, F
Slide 14: Office Portfolio key metrics
Office Portfolio key metrics For personal use only Key statistics 17 Net office property income per State / Territory Geographic diversity As at 30 June 2015 FY15 by property value as at 30 June 2015 $1,206.6m 94% $50m QLD 38% Assets $40m NSW 30% VIC 16% 30 June 2014: 16 $30m Total value* Occupancy
Slide 15: Top five office properties / property groupings by value
Top five office properties / property groupings by value For personal use only Brisbane 1 CBD SW1 Office Complex, South Brisbane, QLD Combined Book Value: WALE: property $269.7m 5.2 yrs The SW1 Office buildings occupy a prime corner site in Brisbane’s premier fringe office location. It offers statis
Slide 16: Top five office properties / property groupings by value (cont.)
Top five office properties / property groupings by value (cont.) For personal use only 2 3 GE Buildings, Richmond, VIC Combined Book Value: WALE: Melbourne property $134.6m 2.7 yrs CBD Growthpoint’s office properties in statistics 2 M2 Richmond, Victoria offer significant Cap Rate: development upsid
Slide 17: Top five office properties / property groupings by value (cont.)
Top five office properties / property groupings by value (cont.) For personal use only 4 5 5 M2 2 4 Brisbane M4 CBD Sydney CBD 3 Bldg C, Gore Hill Tech Park, 1KM 333 Ann Street, 219-247 Pacific Highway, Brisbane, QLD 500M Artarmon, NSW A 24-level A-grade office building Bldg C, Gore Hill: The office
Slide 18: Industrial Portfolio key metrics
Industrial Portfolio key metrics For personal use only Key statistics 36 Net industrial property income per State Geographic diversity As at 30 June 2015 for FY15 by property value as at 30 June 2015 $1,165.9m 100% $50m VIC 47% Assets $40m QLD 21% NSW 12% 30 June 2014: 35 $30m Total value Occupancy
Slide 19: Top five industrial properties / property groups by value
Top five industrial properties / property groups by value For personal use only 70 Distribution Street, 20 Colquhoun Road, Linfox Properties, 28 Bilston Drive, 120 Northcorp Boulevard, Larapinta, QLD Perth Airport, WA Erskine Park, NSW Wodonga, VIC Broadmeadows, VIC Distribution Centre comprising Th
Slide 20: Office acquisition
Office acquisition For personal use only 211 Wellington Road, Mulgrave VIC Key statistics As at 30 June 2015 Another quality office development in partnership with Australand $62.6m This is the sixth development fund through project for Purchase price1 Growthpoint. Investment in this property was at
Slide 21: Industrial acquisitions
Industrial acquisitions For personal use only Three quality purchases expanded Key combined statistics the industrial portfolio As at 30 June 2015 In May 2015, Growthpoint purchased three modern warehouse properties, with leases to quality tenants, $56.9m 1500 Ferntree Gully Road & 8 Henderson Road,
Slide 22: Case study: 10-12 Mort Street, Canberra, ACT
Case study: 10-12 Mort Street, Canberra, ACT For personal use only June 2012 2012- 2015 June 2015 $55.8m Fully $85.0m •• occupied Purchase price for two Independent valuation A-grade buildings On a 7.0% capitalisation rate, Independently valued at $56 million 28% lower than at acquisition (9.75%) ••
Slide 23: Valuations
Valuations For personal use only Key changes to valuations Valuation changes for 6 months to 30 June 2015: included: Investment Property Portfolio1,2 Industrial Office Total • $24.0 million increase at 10-12 Mort $m $m $m Street, Canberra after an eight year extension of the lease to the Commonwealt
Slide 24: Property Portfolio: Summary
Property Portfolio: Summary For personal use only Milestones achieved • 100% occupancy for the industrial portfolio • Major leases to the Department of Employment and Transfield extended • Acquisition of four quality properties for $119.5 million1 with a combined WALE of 5.9 years • Valuation apprec
Slide 25: Financial Management
For personal use only Financial Management 51-65 Lenore Drive, Erskine Park, NSW
Slide 26: Financial results
Financial results For personal use only FY15 FY14 Change % Change Statutory accounting profit $'000 283,004 117,348 165,656 141.2 Statutory accounting profit per security ¢ 50.4 25.7 24.7 96.1 Distributable income $'000 118,910 91,290 27,620 30.3 Distributable income per security ¢ 21.2 20.0 1.2 6.0
Slide 27: Movements in net tangible assets
Movements in tangible assets For personal use only Movements in net tangible assets per security $2.50 $2.40 $2.30 $2.20 $2.10 $2.00 30 Jun 14 Property SWAP Equity raising 30 Jun 15 revaluations revaluations & retained earnings $2.16 +29.9¢ -2.0¢ +4.1¢ $2.48 120 Northcorp Boulevard, Broadmeadows, VI
Slide 28: Debt Management: Gearing
Debt Management: Gearing For personal use only Summary of debt facilities Reduction in gearing and cost of debt Secured Limit Drawn Maturity as at 30 June bank loans ($m) ($m) 65% 8.5% Syndicated Facility 60% 8.0% Balance sheet gearing - Facility A 255 255 December 2017 55% 7.5% All-in cost of debt
Slide 29: Debt Management: Interest rate hedging
Debt Management: Interest rate hedging For personal use only • The weighted average maturity of interest rate swaps is 3.1 years. Including $200 Interest Rate Hedging 75% million Loan Notes (which have a fixed $140m interest rate), total fixed debt maturity $120m increases to 5.0 years. $100m of deb
Slide 30: Operating expenses
Operating expenses For personal use only Operating expenses FY15 FY14 FY13 Total operating expenses $’000 9,123 8,4981 6,431 Average gross asset value $’000 2,211,504 1,810,053 1,662,816 Operating expenses to average gross assets % 0.41 0.47 0.39 Capital expenditure FY15 FY14 FY13 Total portfolio ca
Slide 31: Five year performance summary
Five year performance summary For the five years ended 30 June 2015 For personal use only Year ended 30 June FY15 FY14 FY13 FY12 FY11 Financial performance Investment income $m 361.5 198.5 171.5 115.8 97.6 Profit for the period $m 283.0 117.3 94.0 49.5 43.4 Financial position Total assets (at 30 Jun
Slide 32: Financial Management: Summary
Financial Management: Summary For personal use only Milestones achieved • 21.2 cps distributable income (up 6.0% from FY14) • $2.48 NTA per security (up14.8% from 30 June 2014) • Moody’s rating of Baa2 • First debt capital markets issuance: $200 million loan notes fixed for ten years Focus for the f
Slide 33: Strategy and Performance
For personal use only Strategy and Performance 120 Northcorp Boulevard, Broadmeadows, VIC
Slide 34: Adding value for Securityholders through our transparent business model
Adding FY15: Distributions of $110.7m 1 value for paid to Securityholders (19.7cps). Payout ratio of 93.1% Raise Capital: FY15: $73.7m new equity capital & $200m For personal use only Securityholders Raise equity capital from new debt capital Securityholders in Australia and elsewhere and debt capit
Slide 35: Equity Capital
Equity Capital For personal use only Growthpoint’s Market capitalisation and free float Securityholders* Location of Securityholders* significant increase as at 30 June as at 30 June 2015 as at 30 June 2015 in liquidity, freefloat and trading volumes $1,800m 90% GRT 65.0% South Africa 76.7% enabled
Slide 36: Distributions and security price
Distributions and security price For personal use only Security Price Distributions as at 30 June per stapled security $3.20 22¢ $3.00 20¢ $2.80 $2.60 18¢ $2.40 16¢ $2.20 14¢ $2.00 $1.80 12¢ $1.60 10¢ 2011 2012 2013 2014 2015 FY12 FY13 FY14 FY15 FY161 $1.93 $2.21 $2.40 $2.45 $3.13 17.6¢ 18.3¢ 19.0¢
Slide 37: Total Securityholder returns
Total Securityholder returns 1 For personal use only Securityholder returns Total return comparison 36.4% per annum, over 5 years to 30 June 20151 25% 20% Total Securityholder 15% return FY15 10% 15.5 21.6 23.6 10.8 36.4 5% 0 GOZ A-REIT2 Shares3 21.3% 14.2% 9.5% FY11 FY12 FY13 FY14 FY15 Total Securi
Slide 38: Relative income yields
Relative income yields For personal use only 7% 6% 5% 4% 3% 2% 1% 0% GOZ forecast A-REIT forecast Australian Shares Commonwealth Inflation5 distribution yield1 distribution yield2 forecast Government distribution yield3 10 year bond4 6.6% 5.1% 5.0% 3.0% 1.5% 1. FY16 distribution yield based on 30 Ju
Slide 39: Strategy and performance: Summary
Strategy and performance: Summary For personal use only Milestones achieved • 36.4% total Securityholder return for year to 30 June 20151 • 21.3% p.a. total Securityholder return for five years to 30 June 20151 • Added to S&P/ASX 200, MSCI Global Small Cap and S&P/ASX 300 indexes • Liquidity and tra
Slide 40: Conclusion
For personal use only Conclusion 1231-1241 Sandgate Road, Nundah, QLD
Slide 41: Focus for the year ahead
Focus for the year ahead For personal use only Increase distributions to Existing property assets Borrow prudently Securityholders enhanced • Maintain gearing within 35%-45% range. • Distributions growing each distribution • Leasing of vacant space and leasing or • Extend average debt maturity. peri
Slide 42: Appendices
For personal use only Appendices 45-55 South Centre Road, Melbourne Airport, VIC
Slide 43: Appendix 1: Growthpoint Properties Limited (GRT) - South Africa
Appendix 1: Growthpoint Properties Limited (GRT) - South Africa For personal use only Growthpoint Properties Limited of South Africa (”GRT”) owns 65% of the securities of Key Facts Growthpoint (at 30 June 2015) and is its major Securityholder. Listing GRT is listed on the Johannesburg Stock Other in
Slide 44: Appendix 2: Securityholder calendar
Appendix 2: Securityholder calendar* For personal use only 17 Aug 2015 31 Aug 2015 26 Nov 2015 Results for the full Distribution paid for Annual General year ended 30 June the half year ended Meeting (webcast 2015 announced to 30 June 2015 available for the ASX Securityholders Annual Tax Statement u
Slide 45: Appendix 3: Distributable income
Appendix 3: Distributable income For personal use only Reconciliation from statutory profit to distributable income FY15 FY14 Change Change $’000 $’000 $’000 % Profit after tax 283,004 117,348 165,656 141.2% Less non-distributable items: - Straight line adjustment to property revenue (5,316) (5,373)
Slide 46: Appendix 3: Distributable income (cont.)
Appendix 3: Distributable income (cont.) For personal use only Components of distributable income FY15 FY14 Change Change $’000 $’000 $’000 % Property income 197,240 172,283 24,957 14.5% Property expenses (25,441) (23,643) (1,798) 7.6% Net property income 171,799 148,640 23,159 15.6% Interest income
Slide 47: Appendix 4: Financial position
Appendix 4: Financial position For personal use only 30 June 2015 30 June 2014 $’000 $’000 Assets Cash and cash equivalents 26,858 21,321 Investment properties 2,343,840 2,075,893 Other assets 36,449 31,565 Total assets 2,407,147 2,128,779 Liabilities Borrowings 890,445 871,214 Distributions payable
Slide 48: Glossary
Glossary For personal use only $ or dollar refers to Australian currency unless otherwise indicated Growthpoint SA Growthpoint Properties Limited of South Africa (Growthpoint’s A-REIT Australian Real Estate Investment Trust or GRT majority Securityholder) which trades on the JSE under the code “GRT”
Slide 49: For more information contact us
For more information contact us at: Email: info@growthpoint.com.au Investor services line: 1800 260 453 For personal use only www.growthpoint.com.au Growthpoint Properties Australia Level 22, 357 Collins Street Melbourne VIC 3000 Thank you Growthpoint Properties Australia Annual Results Presentation
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