GARDA Property Group · ASX:GDF
GARDA Property — GARDA Diversified Property Fund — FY2019 Earnings Presentation
34 slides from GARDA Property's earnings presentation, Aug 22, 2019
Slide 1: GARDA Diversified Property Fund Annual Results Presentation
For personal use only GARDA DIVERSIFIED PROPERTY FUND ( ASX CODE: GDF ) Annual Results Presentation 22 August 2019
Slide 2: Disclaimer
Disclaimer This presentation (Presentation) has been prepared on behalf of GARDA Capital Limited (ACN 095 039 366) (AFSL 246714) (GARDA) as responsible entity of the GARDA Diversified Property Fund For personal use only ARSN 104 391 273 (GDF or the Fund). The information and statements in this Prese
Slide 3: GDF at a glance – August 2019
GDF at a glance – August 2019 For personal use only $363 million1 $240 million Commercial and industrial portfolio market capitalisation Weighted average rent reviews FY2019 distribution 83% occupancy2 5.3 years 98% excluding Botanicca 9 WALE3 3.14% actual $0.09 /unit Aligned Manager 38.5% $1.356 6.
Slide 4: Funds From Operations
Funds From Operations For personal use only Statutory Net Profit 30 June 2019 ($) 30 June 2018 ($) 28,780,000 24,161,000 Adjustments: Fair value movement of investment properties (8,994,000) (14,330,000) Loss / (gain) on sale of investment properties (1,550,000) - Net loss / (gain) on fair value mov
Slide 5: FY19 Highlights
FY19 Highlights For personal use only Continue to maximise returns Consistent AUM Growth − Total shareholder return1 for the financial year of 26.9%. − $79 million increase increase in assets under management. − Re-valuations and development grew 7.0% increase in NTA.. − $40 million of acquisitions
Slide 6: Balanced Returns
− The Fund has Balanced Returns consistently delivered For personal use only regular tax-advantaged income and capital growth. − The Fund has GDF.ASX XPJ.ASX outperformed the S&P/ASX 200 A-REIT index since IPO by a total 145% of 17.4%1 (excluding distributions/dividends). 135% − Market capitalisatio
Slide 7: Balanced Returns
Balanced Returns For personal use only Distribution and NTA Uplift per Unit NTA ($ Per Unit) Distributions per units NTA increase per unit $1.37 $1.29 $1.21 $0.200 $0.174 $0.170 $0.170 $1.13 $1.02 $0.11 $0.08 $0.08 $0.08 $0.09 $0.094 $0.09 $0.09 FY16 FY17 FY18 FY19 2015 2016 2017 2018 2019 GARDA Div
Slide 8: NTA Movements
NTA Movements For personal use only 1.45 1.40 0.01 1.375 0.05 1.35 0.065 1.30 1.29 (0.01) (0.005) (0.025) NTA Vlaue ($) 1.25 1.20 1.15 1.10 1.05 1.00 30-Jun-18 Interest rate swap MTM Acquisition Costs Other Revaluation / Litigation Proceeds Gain on Sale 30-Jun-19 Development Profit GARDA Diversified
Slide 9: AUM Growth
− GDF has delivered 159% growth in AUM since IPO. AUM Growth Asset Under Management (AUM) $405m − Assets increased by $223 For personal use only $363m million to $363 million. $284m − $79 million increase in AUM during FY19 via: $188m $141m $154m • $40 million of acquisitions across six assets; • Fo
Slide 10: Portfolio Improvement
Portfolio Improvement 5.8 5.6 The composition of the GDF portfolio has improved since IPO, Wale (Years) For personal use only 5.3 with greater diversification and improved valuation. 4.1 − WALE (by income) has increased to over 5 years, indicative of a shift 3.5 to longer dated industrial assets and
Slide 11: Capital Management
− The Fund completed a $25.0 million placement in October 2018. Capital Management − As part of the Acacia Ridge acquisitions For personal use only Key Debt Metrics completed on 5 July 2019, a $6.0 million placement occurred to the assets vendors. Total debt facilities $162.3 m Drawn debt $139.7 m −
Slide 12: Leasing Overview
Leasing Overview 11,292m² leased through FY19 For personal use only 6,857m2 4,425m2 + including: in H2FY19 in H1FY19 − Long term Cairns tenant Grant Thornton recommitted for a further 10 years. − Following the acquisition of the Acacia Ridge and Archerfield assets, Freight and Logistics Queensland c
Slide 13: At Risk Income
At Risk Income1 Management of year-on-year For personal use only lease expiry remains positive with a strong tenant retention rate. FY20 (10%) and FY21 (7%) lease expiry is consistent with previous financial years. Construction of the Botanicca 9 office project completed in June 2019. Botanicca 9 43
Slide 14: Capital Improvements Program
Capital Improvements Program For personal use only MAINTENANCE CAPEX − Reinvestment into the broader portfolio continued through the capital improvements program, with $8.6 million $0.1m deployed into the existing GDF portfolio during FY19. − Cairns re-investment totalled $6.2m to finalise the groun
Slide 15: Capital Transactions
For personal use only Capital Transactions GARDA Diversified Property Fund Annual Results 2019 15
Slide 16: Divestment: Murrarie
Divestment For personal use only Murrarie Sold − This 3,617m2 property is located in the Brisbane suburban office market. − GARDA has previously communicated its intention to June 2019 recycle capital from the south-east Queensland suburban office assets given the high incentive structures that pres
Slide 17: Acquisitions: Acacia Ridge / Archerfield
Acquisitions For personal use only Acacia Ridge / Archerfield − A portfolio of assets were acquired on 5 July 2019 for a total consideration of $31.0 million plus costs. − All assets are considered to be near term redevelopment assets. Two of the assets (56 & 69 Peterkin Street, Acacia Ridge) are cu
Slide 18: Current Projects
For personal use only Current Projects GARDA Diversified Property Fund Annual Results 2019 18
Slide 19: Project Pipeline
Project Pipeline For personal use only − GARDA continues to build a project pipeline for GDF, with all acquisitions during the year providing further opportunity for the Fund in the Brisbane industrial market. − The Berrinba and Pinnacle on Progress industrial projects were acquired during FY19 and
Slide 20: Botanicca — Melbourne City Fringe
Botanicca 9 — Melbourne City Fringe For personal use only − Construction of the Botanicca 9 project completed in June 2019. − The project generated approximately $8.5 million profit upon completion (equivalent to 5 cents per unit), assessed on a vacant basis. − Leasing inquiry has improved as the ma
Slide 21: Berrinba Industrial Development
Berrinba Industrial Development For personal use only − The Fund acquired an 11,940m² industrial site in November 2018 for $3.0 million. − 1-9 Huntress St, Berrinba is located within the established industrial estate ‘SouthWest 1 Enterprise Park’, approximately 23 kilometres south of the Brisbane CB
Slide 22: Wacol Industrial Development
Wacol Industrial Development For personal use only − The Fund acquired a 4.1 hectare site for $5.9 million in May 2019. − Land recently revalued to $6.5 million. − The site is located on Progress Road, Wacol, a major dual lane arterial road that has just received an upgrade and widening and connects
Slide 23: Outlook and Guidance
For personal use only Outlook and Guidance GARDA Diversified Property Fund Annual Results 2019 23
Slide 24: Objectives
Objectives Projects For personal use only − Richmond - Complete the leasing of Botanicca 9. − Berrinba - Complete construction and manage leasing of the industrial facility. − Wacol - Achieve development approval and commence construction. − Acacia Ridge - Progress re-development options and leasing
Slide 25: FY 2020 Outlook
FY 2020 Outlook For personal use only − GDF will continue to seek opportunities to grow AUM in lower incentivised markets. − GDF AUM increased by $79 million during FY19. − Potential AUM growth to $405 million from future projects during FY20. − GDF is specifically seeking: − Industrial assets in Br
Slide 26: FY 2020 Guidance
FY 2020 Guidance For personal use only − FY2020 distribution guidance at $0.09 per unit paid in equal quarterly distributions. − Expected tax advantaged income of approximately 75%. − At current trading pricing of $1.481 per unit, reflects a distribution yield of 6.1%. − Full year payout ratio forec
Slide 27: GDF Portfolio
For personal use only GDF Portfolio GARDA Diversified Property Fund Annual Results 2019 27
Slide 28: GDF Portfolio
GDF Portfolio For personal use only GARDA Diversified Property Fund Annual Results 2019 28
Slide 29: Property Portfolio
Property Portfolio Classification Property Portfolio Type Independent Valuation¹ ($m) Cap Rate (%) NLA (m2) WALE2 Occupancy2 NABERS For personal use only 9-19 Lake Street, Cairns Office 57.0 8.25% 14,683 3.6 97% 5.0 154 Varsity Parade, Varsity Lakes Office 12.8 8.25% 3,994 2.6 83% 6.0 572-576 Swan S
Slide 30: Financial Information
For personal use only Financial Information GARDA Diversified Property Fund Annual Results 2019 30
Slide 31: Income Statement
Income Statement − Net profit attributable to unitholders For personal use only of $28.8 million, up 19% on the Income Statement prior comparable period. 30 Jun 19 30 Jun 18 − Increase in net profit includes $000's $000's $8.0 million receipt from successful settlement of litigation in December Prop
Slide 32: Funds from Operations
Funds from Operations For personal use only Funds from operations − FFO increased by $2.0 million Full Year 30 Jun 19 Full Year 30 Jun 18 $000's $000's to $13.2 million, representing a 17.9% increase on the prior Statutory Net Profit 28,780 24,161 comparable period. Adjustments: − Total distribution
Slide 33: Balance Sheet
Balance Sheet − Total assets increased to $356.3 million, representing a 22.6% increase on the 30 June Full Year 30 Jun 19 Full Year 30 Jun 18 2018 balance of $290.6 million. For personal use only Balance Sheet $000's $000's Assets − Cash and cash equivalents increased by $15.7 million, largely attr
Slide 34: For personal use only
AjuoO asn feuosied 10)
GARDA Diversified Property Fund — FY2019 Earnings Presentation on 6ix