Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — FY2019 Earnings Presentation
38 slides from Growthpoint Properties Australia's earnings presentation, Aug 22, 2019
Slide 1: Positioned for growth. 2019 Annual Results Presentation
positioned for growth. 2019 Annual Results Presentation 22 August 2019 Growthpoint Properties Australia Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409 www.growthpoint.com.au
Slide 2: Agenda
Agenda. 1. FY19 Highlights and Conditions 2. Financial Position and Summary 3. Q&A 100 Skyring Terrace, Newstead, QLD
Slide 3: FY19 Highlights and Conditions
FY19 Highlights and Conditions Timothy Collyer Managing Director 836 Wellington Street, West Perth, WA
Slide 4: Our business strategy
Our business strategy. Performance is driven through the following strategic initiatives: Our goal is to provide 1. 2. 3. Invest in Maximise Maintain Securityholders quality assets. value. occupancy. with sustainable We seek to invest in the Asset retention and High levels of tenant best quality com
Slide 5: Highlights for FY19
Highlights for FY19. Completed $386 million in Funds From Property Operations portfolio value property transactions1 Development pipeline of $353 million 25.1cps $ 4.0bn +0.4% on FY18 +18.7% on 30 June 2018 Like-for-like portfolio valuation growth of 10% Distributions Net Property per security Incom
Slide 6: Strong returns and significant transactions
Strong returns and significant Property acquisitions Strategic divestments Development pipeline Equity raisings transactions. $ 341m $ 45m $ 353m $ 309m $174m Jun 2019 $161m $ 250m Feb 2019 Dec 20182 $ 45m Placement & Apr 20193 SPP launched $91m $54m Successful Oct 20182 Jan 2019 US Private Asset 4.
Slide 7: Value creation
Value Value creation creation. case study: 75 Dorcas St, June 2016 South Melbourne, Purchased for VIC $166.0 million Growthpoint’s targeted acquisitions reflecting an initial yield of 6.6% creating value for our Securityholders. What we liked at the time: tt The high quality of the improvements Grow
Slide 8: Development update
Development Development project: Construction of new 19,300 sqm office building underway in update. Richmond, VIC ttConstruction currently tracking ahead of schedule with completion expected in first quarter of 2020 ttFeedback from active tenants is positive, with a number shortlisting the developme
Slide 9: Financial Position and Summary
Financial Position and Summary Dion Andrews Chief Financial Officer 599 Main North Road, Gepps Cross, SA
Slide 10: FY19 P&L analysis
FY19 P&L analysis. +5.4% change due to; LFL portfolio growth of +$3.6m, contribution from Components of Funds from Operations (FFO) FY19 FY18 Change new acquisitions of +$13.1m offset Net Property Income $’000 230,388 218,512 5.4% by reductions from properties sold -$4.8m Add back amortisation of in
Slide 11: Capital management and gearing
Capital management and gearing. tt Raising $309 million Items influencing gearing (%) for the year ended 30 June 2019 of equity over the year has reduced gearing to +0.9% +0.2% +0.8% 30.1%1, below the bottom +1.6% +1.7% -1.2% of our target range of 35- +3.2% -2.1% 45% 33.9% 34.3% tt Free float has a
Slide 12: Movements in NTA
Movements in NTA. Uplift driven by: Movements in NTA ($) per stapled security +$0.020 $3.520 tt 33 bps fall in weighted +$0.021 $3.500 +$0.010 +$0.004 average capitalisation rate +$0.277 of property portfolio since -$0.002 30 June 2018 to 5.9% tt Raising equity at a price above NTA also contributed
Slide 13: Debt book well balanced
Debt book well balanced. tt May issue of $161 million Debt maturity profile ($m) At 30 June 20191 into USPP market to Weighted repay short-term bridge Bank debt Institutional term loan USPP Undrawn bank debt Bank debt / average debt non-bank debt2 facility extended debt maturity maturity profile 500
Slide 14: Strategy and outlook
Strategy and outlook. nn Well positioned – A strong balance sheet with GOZ’s investment focused in the growth sectors of office and industrial nn Growth orientated – Development and expansion within the portfolio to continue, along with deploying capital raised for accretive acquisitions nn Focus on
Slide 15: Appendices
Appendices 5 Murray Rose Avenue, Sydney Olympic Park, NSW
Slide 16: State of key office markets
State of key 3% of Growthpoint Portfolio Brisbane - CBD Brisbane - Fringe 20% of Growthpoint Portfolio office markets. Vacancy 11.0% Prime Secondary Vacancy 14.8% Prime Secondary R $734 gross $570 gross R $571 gross $459 gross R Average face rent per sqm per annum I 38% 40% I 39% 39% I Average incen
Slide 17: State of key industrial markets
State of key industrial markets. R Average face rent per sqm per annum I Average incentives Y Average core market yield 7% of Rents Rents Brisbane Growthpoint decreasing increasing Portfolio / incentives / incentives 407,520 sqm* increasing / decreasing / yields Stable yields Prime Secondary softeni
Slide 18: Portfolio Summary
Portfolio Summary. Sector diversity (%) Geographic diversity (%) Occupancy (%) by property value, as at 30 June 2019 by property value, as at 30 June 2019 by income, as at 30 June 2019 NSW 25% Office 69% WA 8% Occupied 98% SA 6% ACT 4% Vacant 2% QLD 29% Industrial 31% VIC 28% Tenant type (%) Tenant
Slide 19: High quality tenants and manageable near-term expiries
High quality tenants and manageable near-term expiries. Top ten tenants Portfolio lease expiry profile (%) by passing rent, as at 30 June 2019 per financial year, by income WALE % (yrs) Major lease expiries (>1% of portfolio income) Woolworths 14 5.3 Office NSW Police 8 4.9 Industrial Commonwealth o
Slide 20: Geographic diversity
Geographic diversity.* 86% of properties located on Eastern seaboard by property value, as at 30 June 2019 Office Metro properties (23 assets) Office CBD properties (3 assets) 29% Queensland Industrial properties (31 assets) $1,172.8m – Office $915.2m – Industrial $257.6m 25% New South Wales $971.4m
Slide 21: Top five office properties/ property groups by value
Top five office properties/ property groups by value. SW1 Complex, 1 Charles St, Bldgs. 1, 2, & 3, 570-576 Sydney Olympic Park, 100 Skyring Tce, South Brisbane, QLD Parramatta, NSW Swan St, Richmond, VIC NSW Newstead, QLD 56% (5 properties) (4 properties, incl. car park) (4 properties) of office por
Slide 22: Top five industrial properties/ property groups by value
Top five industrial properties/ property groups by value. Woolworths Linfox properties, Melbourne Airport Knoxfield industrial Perth Airport industrial Distribution Centres Erskine Park, NSW industrial properties, VIC properties, VIC properties, WA 80% (4 properties) (3 properties) (6 properties) (3
Slide 23: Summary Financials
Summary Financials. FY19 FY18 Change % Change Net property income $'000 230,388 218,512 11,876 5.4 Like-for-like property income $'000 206,522 203,080 3,442 1.7 Statutory accounting profit $'000 375,292 357,709 17,583 4.9 Statutory accounting profit per security ¢ 52.9 53.5 (0.6) (1.1) Funds From Op
Slide 24: Reconciliation from statutory profit to FFO
Reconciliation from statutory profit to FFO. FY19 FY18 Change Change $’000 $’000 $’000 % Profit after tax 375,292 357,709 17,583 4.9% Less non-FFO items: - Straight line adjustment to property revenue (6,237) (5,962) (275) - Net changes in fair value of investment property (201,581) (166,958) (34,62
Slide 25: Financial position
Financial position. as at 30 June 20191 as at 30 June 2018 $’000 $’000 Assets Cash and cash equivalents 30,172 31,463 Investment properties 3,983,750 3,291,800 Other assets 103,938 151,306 Total assets 4,117,860 3,474,569 Liabilities Borrowings 1,262,510 1,197,555 Distributions payable 84,424 75,643
Slide 26: Lease incentives
Lease incentives. Lease incentives for leasing completed in FY19 averaged 10% (20% office Average lease incentives (%) and 7% industrial). This includes fit-out, rent free, rental abatement and cash FY18 FY19 payments. Financial impact of lease incentives and leasing costs¹ 27 The impact of lease in
Slide 27: Operating and capital expenses
Operating and capital expenses. Operating expenses FY19 FY18 Total operating expenses $'000 13,943 13,362 Average gross assets value $'000 3,821,142 3,377,737 Expected to remain around Operating expenses to average % 0.36% 0.40% 0.40% based on current portfolio Capital expenditure FY19 FY18 Total po
Slide 28: Target fixed/hedged debt 65% to 100%
Target fixed/hedged debt 65% to 100%. Weighted average fixed debt Time Fixed Face value Maturity date to maturity rate of Swap Interest Rate Swaps (IRS) Weighted average fixed Jun-2023 4.0yrs 1.15% $75m debt (term) Jun-2023 4.0yrs 1.15% $25m 5.6yrs Jun-2024 5.0yrs 1.21% $100m Jun-2025 6.0yrs 1.29% $
Slide 29: Portfolio overview – ten year performance summary
Portfolio overview – ten year performance summary. As at 30 June FY19 FY18 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 Number of properties no. 57 57 58 58 53 51 44 42 37 25 Total value $m 3,983.8 3,356.1 3,283.8 2,832.6 2,372.5 2,093.7 1,694.5 1,634.8 1,244.9 756.9 Occupancy % 98 98 99 99 97 98 98 99 1
Slide 30: Leasing
Leasing. Leases completed in FY19 Term Annual rent NLA Car At 30 June 2019 Address Sector Tenant Start date (yrs) increases (sqm) Parks* Building C, 211 Wellington Road Mulgrave VIC Office Huili Group P/L T/A The Taste Corner Q1, FY19 5.0 Fixed 3.25% 145 2 102 Bennelong Parkway Sydney Olympic Park N
Slide 31: Leasing continued
Leasing continued 146,404 sqm of leasing since 30 June 2018, equivalent to 14% of the portfolio’s total lettable area1 Leases completed in FY19 (continued) Term Annual rent NLA Car Address Sector Tenant Start date (yrs) increases (sqm) Parks* A4, 52 Merivale Street South Brisbane QLD Office JLL Q4,
Slide 32: Equity capital overview
Equity capital overview. Market capitalisation and free float ($m) 3,386.91,2 Location of Growthpoint Growthpoint Securityholders* (%) Securityholders* (%) Market Capitalisation as at 1 August 2019 as at 1 August 2019 Free float 2,438.1 16 1 9 2,076.6 1,781.1 1,836.8 18 28 1,323.3 1,279.61,2 966.8 7
Slide 33: Growthpoint Properties Limited – South Africa
Growthpoint Properties Limited – South Africa.1 Growthpoint Properties Limited of South Africa (“GRT”) owns 62.22% Key Facts (as at 31 December 2018)1 of the securities of Growthpoint (at 1 August 2019) and is its major Securityholder. Listing GRT is listed on the Johannesburg Stock Exchange (JSE) O
Slide 34: Board of Directors
Board of Directors. 1. Geoffrey Tomlinson (71) 3. Maxine Brenner (57) 5. Grant Jackson (53) 7. Norbert Sasse (54) 1 2 BEC BA, LLB Assoc. Dip. Valuations, FAPI BCom (Hons) (Acc), CA (SA) Independent Chairman (since Independent Director (since 19 March Independent Director (since 5 August Director3 (s
Slide 35: 2019 Securityholder calendar
2019 Securityholder calendar.* 22 August 2019 • Results for the full year ended 30 June 2019 announced to ASX 30 August 2019 • Distribution paid for the half year ending 30 June 2019 • FY19 Annual Report sent to Securityholders 31 October 2019 • Investor Update released to ASX 21 November 2019 • Ann
Slide 36: Glossary of terms
Glossary of terms. A-REIT Australian Real Estate Investment Trust FYXX the 12 months ended on 30 June in the year listed i.e. MER management expense ratio comprising all the Group’s “FY19” means the 12 months ended 30 June 2019 costs other than interest divided by the average gross assets for ASX Au
Slide 37: Important information
Important information. Disclaimer as amended. These measures include Funds From Operations (FFO), FFO invested. Growthpoint does not guarantee any particular rate of return or the This presentation and its appendices (“Presentation”) is dated 22 August per security, distributions per Security, Geari
Slide 38: Contact details
1 Charles Street, Parramatta, NSW Contact details: Retail Investors: Computershare Investor Services Pty Limited, GPO Box 2975, Melbourne VIC 3001 Australia Phone (within Australia): 1300 850 505 Phone (outside Australia): +61(0)3 9415 4000 Fax: +61(0)3 9473 2500 Email: webqueries@computershare.com.
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