Gpt Group · ASX:GPT
Gpt — The GPT Group — FY2018 Earnings Presentation
100 slides from Gpt's earnings presentation, February 2019
Slide 1: Annual Result
The GPT Group ANNUAL RESULT
Slide 2: Agenda
SECTION SPEAKER AGENDA 2018 Annual Result Highlights Bob Johnston Financial Summary & Capital Management Anastasia Clarke Retail Mark Fookes Office & Logistics Matthew Faddy Funds Management Nicholas Harris Summary & Outlook Bob Johnston ANNUAL RESULT 2018
Slide 3: Our Vision and Our Focus
RESULTS PRESENTATION 3 OUR VISION To be the most respected property company in Australia in the eyes of our Investors, People, A high quality Customers and portfolio of Communities Australian real estate in the best markets OUR FOCUS Focus on quality assets and markets that we believe will provide l
Slide 4: 2018 Annual Result Financial Highlights
2018 Annual Result Financial Highlights 2018 Annual Result Financial Highlights Consistently delivering strong returns 3.5% 3.5% $5.58 15.8% FFO GROWTH DISTRIBUTION GROWTH NTA PER SECURITY TOTAL PER SECURITY PER SECURITY UP 10.7 PER CENT RETURN The GPT Group 2018 Annual Result 4 RESULTS PRESENTATION
Slide 5: Progress on Strategic Priorities
RESULTS PRESENTATION 5 Progress on Strategic Priorities Progress on Strategic Priorities Investment Portfolio Balance Sheet & Capital Management + Portfolio occupancy of 97.8% + Net gearing at 26.3% + Like for like income growth 3.8% + Interest rate hedging at 83% + Revaluation gains of $911 million
Slide 6: Finance & Treasury
FINANCE & TREASURY ANNUAL RESULT 2018 RESULTS PRESENTATION 6
Slide 7: Financial Summary
RESULTS PRESENTATION 7 Financial Summary Financial Summary 12 MONTHS TO 31 DECEMBER ($ MILLION) 2018 2017 CHANGE $1,451.7M Funds From Operations (FFO) 574.6 554.2 3.7% STATUTORY NET PROFIT Valuation increases 910.7 717.7 AFTER TAX Treasury items marked to market (39.6) (2.9) Other items 6.0 (1.0) Ne
Slide 8: Segment Result
Segment Result Segment Result 12 MONTHS TO 31 DECEMBER 2018 2017 ($ MILLION) Strong contribution from Melbourne Central, Charlestown and Retail 326.2 318.4 ▲ 2.4% Rouse Hill Office 268.7 248.9 ▲ 8.0% Acquisition of Eclipse Tower, plus strong contribution from MLC, 1 Farrer Place and Australia Square
Slide 9: Capital Management
RESULTS PRESENTATION 9 Capital Management Capital Management KEY STATISTICS + Diversified sources of debt DEC 2018 JUN 2018 + Gearing policy of 25 – 35% Net tangible assets per security $5.58 $5.31 + Targeting ‘A-space’ credit ratings Net gearing 26.3% 24.7% Weighted average cost of debt 4.2% 4.3% W
Slide 10: Retail
The GPT Group ANNUAL RESULT 2018 ae , —— i] \
Slide 11: Retail Highlights
RESULTS PRESENTATION 11 Retail Highlights Retail Highlights 2.2% 3.6% 99.6% Retail Portfolio Quality & Exposure NT LIKE FOR LIKE TOTAL SPECIALTY PORTFOLIO QLD 6% INCOME GROWTH MAT GROWTH OCCUPANCY 9% NSW 41% 44% + $6.2 billion retail portfolio Key + Revaluation uplift of $161.0 million, WACR of 4.88
Slide 12: Retail Sales
Retail Sales Retail Sales Portfolio MAT Growth by Category 12.6% 11.4% 3.6% 9.7% 7.3% 6.5% 6.1% 3.6% 3.2% Total Specialty MAT Growth 2.4% 0.7% Specialties >400sqm Specialties <400sqm -1.1% 6.9% 2.5% -2.1% -2.4% -3.7% -6.6% Specialty Sales Productivity (<400sqm) -10.2% $ 11,460 2.5% Cinemas DDS Super
Slide 13: Retail Leasing
RESULTS PRESENTATION 13 Retail Leasing Retail Leasing + High quality portfolio is well positioned with low vacancy + Introduction of new retail concepts and remixing to growth categories at Highpoint as part of the re-leasing program in 2018 and fixed increases of 4.7% achieved on deals completed in
Slide 14: Retail Development
Retail Development Retail Development Sunshine Plaza Retail Offer Stage One + 40 retail brands new to the Sunshine + Opened fully leased Coast market including on 15 November 2018 a number of including 33 new international brands and specialty stores and a national flagship stores refurbished Myer +
Slide 15: Retail Development
RESULTS PRESENTATION 15 Retail Development Retail Development Melbourne Central Rouse Hill Town Centre + Progressive enhancement of the existing asset | $50 million during 2019 + Proposed $170 million expansion, including additional 16,300sqm of retail and 2020 and 4,500sqm of commercial space + Pro
Slide 16: Office & Logistics
OFFICE & LOGISTICS ANNUAL RESULT 2018
Slide 17: Office Highlights
RESULTS PRESENTATION 17 Office Highlights Office Highlights 5.8% PORTFOLIO $ 598.5M 16.9% VALUATION TOTAL Office Portfolio Geographic Exposure LIKE FOR LIKE UPLIFT RETURN INCOME GROWTH Premium 54% + $5.9 billion office portfolio Key + Office valuation gains driven by Sydney assets, WACR of Outcomes
Slide 18: Office Valuation & Market Fundamentals
Office Valuation & Market Fundamentals Office Valuation & Market Fundamentals Net Supply vs Vacancy Rate by Market + Valuation uplift for 12 months of $598.5 million for the Office portfolio, representing an increase of 11% sqm Net Supply (LHS) Vacancy Rate (RHS) Vacancy Rate - 10y Avg. 400,000 20%
Slide 19: Office Leasing
RESULTS PRESENTATION 19 Office Leasing Office Leasing + 158,400sqm of signed leases with a further 19,400sqm terms agreed + Increased occupancy to 97.1% with limited vacancy in Melbourne + Renewals secured with Mills Oakley, Baker McKenzie, AusNet Services and Microsoft + New leases agreed with CUB,
Slide 20: Office Portfolio Growth
Office Portfolio Growth Office Portfolio Growth Eclipse Tower, 32 Smith, Parramatta 60 Station St, Parramatta + QBE pre-commitment across 13,600sqm, Acquisition Date September 2018 representing 51% of NLA Asset Area 25,700sqm + Target completion in late 2020 Purchase Price $277.6 million + Expected
Slide 21: Logistics Highlights
RESULTS PRESENTATION 21 Logistics Logistics Highlights Highlights 2.8% $ 151.2M 15.2% PORTFOLIO VALUATION TOTAL Logistics Portfolio LIKE FOR LIKE UPLIFT RETURN INCOME GROWTH Geographic Exposure + $1.9 billion logistics portfolio Key + High portfolio occupancy of 97.2% and long WALE of 7.1 years Outc
Slide 22: Logistics Portfolio Growth
Logistics Portfolio Growth Logistics Portfolio Growth + Three prime logistics assets acquired, totalling $102 million, in Sunshine, Derrimut and Truganina in Melbourne’s West + Replenishing the Logistics land bank through the acquisition of 8.9 hectares of land in Truganina with capacity to deliver
Slide 23: Funds Management
RESULTS PRESENTATION 23 FUNDS MANAGEMENT ANNUAL RESULT 2018
Slide 24: Funds Management Highlights
Funds Management Highlights Funds Management Highlights FUNDS MANAGEMENT $ 12.6B ASSETS UNDER 11.3% TOTAL 15.1% PROFIT FINANCIAL SUMMARY ($M) Segment Result 2018 42.6 2017 37.0 CHANGE 15.1% MANAGEMENT RETURN GROWTH + Funds Management business delivered a strong total AUM and EBIT Growth Key return o
Slide 25: Fund Update
RESULTS PRESENTATION 25 Fund FundUpdate Update • Achieved a 12.7% total return for the year to 31 December 2018 FUND TOTAL FUND RETURN GPT GPT • Leading its unlisted office fund peers over five, seven and ten ASSETS 1 year 3 years INVESTMENT Wholesale years GWOF $7.8b 12.7% 13.6% $1.5b Office Fund •
Slide 26: Summary & Outlook
Summary & Outlook Summary & Outlook ECONOMIC OUTLOOK SECTOR OUTLOOK GROUP OUTLOOK • Economic outlook has softened but expected to • Retail assets in strong catchments with a • Office and logistics sectors will continue to remain healthy compelling proposition will grow productivity outperform • Sydn
Slide 27: Disclaimer
RESULTS PRESENTATION 27 Disclaimer Disclaimer The information provided in this presentation has been prepared by The GPT Group comprising GPT RE Limited (ACN 107 426 504) AFSL (286511), as responsible entity of the General Property Trust, and GPT Management Holdings Limited (ACN 113 510 188). The in
Slide 28: 2018 Annual Result
The GPT Group 2018 ANNUAL RESULT
Slide 29: Contents
CONTENTS GPT Overview 28 Financial Performance 32 Retail Portfolio 42 Office Portfolio 52 Logistics Portfolio 68 Development 82 Funds Management 86 Note: All information included in this pack includes GPT owned assets and GPT’s interest in the Wholesale Funds (GWOF and GWSCF) unless otherwise stated
Slide 30: GPT Overview
2018 ANNUAL RESULT GPT OVERVIEW GPT Overview
Slide 31: GPT Overview
GPT Overview GPT’s core portfolio consists of high quality properties in the retail, office and logistics sectors. The portfolio includes some of the most iconic buildings in Australia and award winning developments. GPT Portfolio Diversity Retail Portfolio Office Portfolio Logistics Portfolio As at
Slide 32: GPT Portfolio Metrics
GPT OVERVIEW 29 GPT Portfolio Metrics Across the three sectors, GPT has maintained high occupancy and a long WALE. Portfolio Size Comparable Income Growth1 WALE Occupancy WACR Retail $6.20b 2.2% 4.0 years 99.6% 4.88% Office $5.93b 5.8% 5.2 years 97.1% 4.95% Logistics $1.89b 2.8% 7.1 years 97.2% 5.78
Slide 33: Glossary
Glossary A-Grade As per the Property Council of Australia’s ‘A Guide to Office Building Quality’ GLA Gross Lettable Area AFFO Adjusted Funds From Operations: Adjusted Funds From Operations is GWOF GPT Wholesale Office Fund defined as FFO less maintenance capex, leasing incentives and one-off items c
Slide 34: Glossary
GPT OVERVIEW 31 NTA Net Tangible Assets Specialty Tenants Retail tenancies with a GLA below 400 sqm Ordinary Securities Ordinary securities are those that are most commonly traded on the ASX: Sqm Square metre The ASX defines ordinary securities as those securities that carry no TR Total Return: Tota
Slide 35: Financial Performance
2018 ANNUAL RESULT FINANCIAL PERFORMANCE Financial Performance
Slide 36: Financial Summary
Financial Summary 12 months to 31 December 2018 2017 Change Funds From Operations ($m) 574.6 554.2 3.7% Net profit after tax ($m)1 1,451.7 1,268.0 14.5% FFO per ordinary security (cents) 31.84 30.77 3.5% FFO yield (based on period end price) 6.0% 6.0% Distribution per ordinary security (cents) 25.46
Slide 37: Results Summary
FINANCIAL PERFORMANCE 33 Results Summary Segment performance 12 months to 31 December ($m) 2018 2017 Retail Operations net income 318.6 313.1 Development net income 7.6 5.3 326.2 318.4 Office Operations net income 267.7 247.8 Development net income 1.0 1.1 268.7 248.9 Logistics Operations net income
Slide 38: Funds From Operations to Adjusted Funds From Operations
Funds From Operations to Adjusted Funds From Operations 12 months to 31 December ($m) 2018 2017 Core business 747.4 698.3 Financing and corporate overheads (172.8) (144.1) Funds From Operations 574.6 554.2 Maintenance capital expenditure (53.2) (54.4) Lease incentives (including rent free and leasin
Slide 39: NTA Movement
FINANCIAL PERFORMANCE 35 NTA Movement Securities on Issue Number of Securities (million) Opening balance 1 January 2018 1,801.6 Issue of securities 3.3 31 December 2018 balance 1,804.9 Net Assets No. of Securities NTA per Security NTA Movement ($m) (million) ($) NTA position as at 31 December 20171
Slide 40: Capital Management Summary
Capital Management Summary Gearing ($m) As at 31 December 2018 Interest Cover ($m) 31 December 2018 Total assets 14,778.0 Funds From Operations 574.6 Less: intangible assets (26.8) Add: taxes deducted 14.2 Less: Cross currency swap assets (265.4) Add: Finance Costs for the period 125.8 Total tangibl
Slide 41: Look Through Gearing
FINANCIAL PERFORMANCE 37 Look Through Gearing Look Through Gearing as at 31 December 2018 GPT Group GWOF GWSCF Other2 Total Share of assets of non-consolidated entities Group total tangible assets 14,485.8 14,485.8 Plus: GPT share of assets of non-consolidated entities 1,857.7 1,383.8 1,396.3 4,637.
Slide 42: Debt Maturity Profile
Debt Maturity Profile Undrawn committed facilities and cash of $810 million. Debt Maturity Profile As at 31 December 2018 700 600 500 A$ millions 400 300 200 100 0 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20
Slide 43: Liquidity Profile
FINANCIAL PERFORMANCE 39 Liquidity Profile Liquidity Profile As at 31 December 2018 0.9 0.8 0.7 0.6 0.5 ($bn) 0.4 0.3 0.2 0.1 0.0 Cash balance Undrawn Current Development/Capex Retained Excess liquidity at 31 December 2018 existing liquidity earnings 31 December 2019 facilities
Slide 44: Hedging Profile
Hedging Profile Hedging Profile as at 31 December 2018 Average Rate on Hedged Balance Principal Amount of Derivative Principal Amount of Hedging Position excl Margins Financial Instruments ($m) Fixed Rate Borrowings ($m) 31 December 2018 2.56% 2,465 725 31 December 2019 2.56% 2,665 475 31 December 2
Slide 45: Financial Performance
FINANCIAL PERFORMANCE 41 Riverside Centre, Brisbane
Slide 46: Retail Portfolio
2018 ANNUAL RESULT RETAIL PORTFOLIO Retail Portfolio
Slide 47: Retail Portfolio Overview
Retail Portfolio Overview GPT is a leading owner, manager and developer of Australian retail property. GPT’s retail investments of $6.2 billion include a portfolio of assets held on the Group’s Balance Sheet and an investment in the GPT Wholesale Shopping Centre Fund (GWSCF). Darwin New South Wales
Slide 48: Retail Portfolio Summary
RETAIL PORTFOLIO 43 Retail Portfolio Summary Top Ten Tenants1 Geographic Weighting As at 31 December 2018 As at 31 December 2018 Cotton On NSW 41% Woolworths Myer Clothing Wesfarmers Just Group VIC 44% 4.0% 2.8% 2.7% 2.6% 2.5% QLD 9% NT 6% 2.2% 1.7% 1.5% 1.4% 1.3% Coles Group Hoyts Country Road Reta
Slide 49: Retail Portfolio Summary
Retail Portfolio Summary GLA 31 Dec 18 31 Dec 18 Centre Specialty Specialty (100% Interest) Fair Value Cap Rate MAT Occupancy MAT2 State Ownership (sqm) ($m) (%) Occupancy ($m) Cost2 ($psm) GPT Portfolio Casuarina Square NT 50% 55,100 300.8 5.50% 98.9% $366.4m 17.9% 9,872 Charlestown Square NSW 100%
Slide 50: Income and Fair Value Schedule
RETAIL PORTFOLIO 45 Income and Fair Value Schedule Income 12 months to 31 Dec ($m) Fair Value Reconciliation Development Fair Value & Other Maintenance Lease Net Other Fair Value % of 31 Dec 17 Capex Capex Incentives Acquisitions Sales Revaluations Adjustments 31 Dec 18 Portfolio 2017 2018 Variance
Slide 51: Retail Sales Summary
Retail Sales Summary Comparable Comparable Centre MAT Centre MAT Specialty MAT Specialty MAT4 Specialty ($m) Growth Growth4 ($psm) Occupancy Cost4 GPT Portfolio Casuarina Square $366.4m (7.0%) (6.4%) 9,872 17.9% Charlestown Square $584.2m 0.7% (0.6%) 12,221 14.8% Highpoint Shopping Centre $1,022.4m
Slide 52: Comparable Change in Retail Sales by Category
RETAIL PORTFOLIO 47 Comparable Change in Retail Sales by Category Comparable Change in Retail Sales by Category as at 31 December 2018 MAT ($m) 12 Months Growth Department Store $104.2m (3.7%) Discount Department Store $222.5m (1.1%) Supermarket $449.2m 0.7% Cinemas $63.0m (2.1%) Other Retail1 $170.
Slide 53: Retail Sales
Retail Sales Specialty MAT Growth1 6.5% 5.9% 4.2% 4.2% 3.6% 3.2% 2.8% 2.7% 2.6% 2.5% 2.1% 2.1% 1.8% 1.7% 1.5% 1.2% 1.1% 0.5% 0.4% 0.2% 0.3% Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun 17 Dec 17 Jun 18 Dec 18 Note: From De
Slide 54: External Valuation Summary
RETAIL PORTFOLIO 49 External Valuation Summary Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) GPT Portfolio Casuarina Square NT 50% 31 Dec 18 Savills 300.8 5.50% Charlestown Square NSW 100% 30 Jun 18 KF 968.0 5.25% Highpoint Shopping Centre VIC 17% 31 Dec 18 CBRE 435.0 4.13% Melb
Slide 55: Retail Sustainability
Retail Sustainability Water (Total) Emissions Waste % Area GLA Litres/m2 kg CO2-e/m2 Recycled/Reused GPT Portfolio Casuarina Square 55,100 1,753 72 23% Charlestown Square 94,800 514 60 59% Highpoint Shopping Centre 152,500 1,080 73 38% Melbourne Central 56,300 1,991 162 26%¹ Rouse Hill Town Centre 6
Slide 56: Retail Sales Categories
RETAIL PORTFOLIO 51 Retail Sales Categories Broad Category Sub Category Tenant Examples RETAIL Department Store Department Store David Jones, Myer Discount Department Store Discount Department Store Kmart, Big W, Target Supermarkets Supermarket Woolworths, Coles Fashion, Footwear & Unisex, Womenswea
Slide 57: Office Portfolio
2018 ANNUAL RESULT OFFICE PORTFOLIO Office Portfolio
Slide 58: Office Portfolio Overview
Office Portfolio Overview GPT’s office portfolio comprises ownership in 25 high quality assets with a total investment of $5.9 billion. The portfolio includes assets held on the Group’s balance sheet and an investment in the GPT Wholesale Office Fund (GWOF). New South Wales Victoria GPT Owned GPT Ow
Slide 59: Office Portfolio Summary
OFFICE PORTFOLIO 53 Office Portfolio Summary The GPT office portfolio has exposure to 100% Prime Grade office assets and benefits from a diversified tenant base. Top Ten Tenants1 Tenant Mix by Industry2 Geographic Weighting As at 31 December 2018 As at 31 December 2018 As at 31 December 2018 ANZ Ban
Slide 60: Income and Fair Value Schedule
Income and Fair Value Schedule Income Fair Value Reconciliation 12 months to 31 Dec ($m) Capex Development Fair Value & Other Maintenance Lease Net Other Fair Value % of 31 Dec 17 Capex Capex Incentives Acquisitions Sales Revaluations Adjustments 31 Dec 18 Portfolio 2017 2018 Variance ($m) ($m) ($m)
Slide 61: Office Portfolio Summary
OFFICE PORTFOLIO 55 Office Portfolio Summary Office Occupancy Office NLA (100% 31 Dec 18 31 Dec 18 Inc. WALE Interest) Fair Value Cap Rate Inc. Signed Heads of by Income State Ownership (sqm) ($m) (%) Actual Leases Agreement (Years) GPT Portfolio Australia Square, Sydney NSW 50% 51,600 557.5 4.92% 9
Slide 62: Office Occupancy
Office Occupancy Office NLA (100% 31 Dec 18 31 Dec 18 Inc. WALE Interest) Fair Value Cap Rate Inc. Signed Heads of by Income State Ownership (sqm) ($m) (%) Actual Leases Agreement (Years) GWOF Portfolio Liberty Place, Sydney NSW 50% 56,500 725.0 4.50% 100.0% 100.0% 100.0% 10.0 DP1: 5.40% DP1: 100.0%
Slide 63: External Valuation Summary
OFFICE PORTFOLIO 57 External Valuation Summary Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) GPT Portfolio Australia Square, Sydney NSW 50% 31 Dec 18 Colliers 557.5 4.92% Citigroup Centre, Sydney NSW 50% 31 Dec 18 CBRE 762.5 4.88% MLC Centre, Sydney NSW 50% 31 Dec 18 JLL 775.0 4
Slide 64: External Valuation Summary (GWOF)
Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) GWOF Portfolio Liberty Place, Sydney NSW 50% 31 Dec 18 C&W 725.0 4.50% DP1: 5.40% Darling Park 1 & 2, Sydney NSW 50% 30 Sep 18 JLL 965.0 DP2: 4.94% Darling Park 3, Sydney NSW 100% 30 Sep 18 JLL 550.0 5.06% 580 George Street, Sydney N
Slide 65: Office Sustainability
OFFICE PORTFOLIO 59 Office Sustainability NABERS Energy Rating (including Green Power) NABERS Water Rating NABERS Energy Rating (excluding Green Power) 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 GPT Portfolio Australia Square, Sydney (Tower) 4.0 4.5 4.5 5.0 5.0 3.0 3.
Slide 66: NABERS Ratings GWOF Portfolio
NABERS Energy Rating (including Green Power) NABERS Water Rating NABERS Energy Rating (excluding Green Power) 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 GWOF Portfolio Liberty Place, Sydney 5.0 5.0 5.0 5.5 5.0 – 3.5 3.5 4.0 4.0 5.0 5.0 5.0 5.0 5.0 Darling Park 1, Sydn
Slide 67: Office Sustainability
OFFICE PORTFOLIO 61 Office Sustainability Water Emissions Waste Area NLA Litres/m2 kg CO2-e/m2 % Recycled/Reused GPT Portfolio Australia Square, Sydney 51,600 901 71 48% Citigroup Centre, Sydney 73,400 609 55 35% MLC Centre, Sydney 66,900 1,284 95 32% 1 Farrer Place, Sydney 84,400 678 89 48% Melbour
Slide 68: Office Sustainability GWOF
Water Emissions Waste Area NLA Litres/m2 kg CO2-e/m2 % Recycled/Reused GWOF Portfolio Liberty Place, Sydney 56,500 732 14 48% Darling Park 1 & 2, Sydney 3 101,800 557 38 45% Darling Park 3, Sydney 29,800 759 36 29% 580 George Street, Sydney 37,000 550 45 39% workplace6, Sydney 16,300 597 30 44% 2 So
Slide 69: Lease Expiry Profile
OFFICE PORTFOLIO 63 Lease Expiry Profile Lease Expiry Profile (by Income) 16% 13% 13% 12% 11% 11% 6% 5% 5% 5% 4% 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029+ Note: Includes Signed Leases.
Slide 70: Office – Sydney CBD
Office – Sydney CBD Office – Sydney CBD Sydney CBD: Rents and Incentives (4Q18) $/sqm pa • Vacancy continues to tighten to a rate of 4.1%, $1,200 40% $1,122 driven by moderate net absorption and a near flat $1,100 (+6.4%) 35% level of net supply. $1,000 Incentives (RHS) $900 $826 30% • Face and effe
Slide 71: Office – Melbourne CBD
OFFICE PORTFOLIO 65 Office Office –– Melbourne MelbourneCBD CBD • Melbourne continues to experience strong net $/sqm pa Melbourne CBD: Rents and Incentives (4Q18) absorption levels, significantly exceeding a low level $600 $580 45% Net Face (+5.2%) of net supply, causing the vacancy rate to reach a
Slide 72: Office – Brisbane CBD
Office – Office – Brisbane Brisbane CBD CBD Brisbane CBD: Rents and Incentives (4Q18) • Brisbane’s vacancy rate continued to tighten to a rate $/sqm pa of 13.2%, due to moderate demand from an improving $800 38.5% 45% Incentives (RHS) State economy and negative net supply as a result of no $700 (-4
Slide 73: Office Portfolio
OFFICE PORTFOLIO 67 Highpoint Shopping Centre, VIC
Slide 74: Logistics Portfolio
2018 ANNUAL RESULT LOGISTICS PORTFOLIO Logistics Portfolio
Slide 75: Logistics Portfolio Overview
Logistics Portfolio Overview GPT’s logistics portfolio consists of ownership in 28 high quality logistics and business park assets located across Australia’s Eastern Seaboard. New South Wales Victoria • Rosehill Business Park, Camellia • Citiwest Industrial Estate, Altona North • 10 Interchange Driv
Slide 76: Logistics Portfolio Summary
LOGISTICS PORTFOLIO 69 Logistics Portfolio Summary The logistics portfolio delivered a Total Portfolio Return of 15.2%, underpinned by a high occupancy level of 97.2% and a long weighted average lease expiry of 7.1 years. Top Ten Tenants1 Geographic Weighting As at 31 December 2018 As at 31 December
Slide 77: Lease Expiry Profile
Lease Expiry Profile Lease Expiry Profile (by Income) 34% 16% 12% 8% 8% 5% 6% 4% 4% 3% 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028+ Note: Includes Signed Leases. LOGISTICS PORTFOLIO 70
Slide 78: Income and Fair Value Schedule
LOGISTICS PORTFOLIO 71 Income and Fair Value Schedule Income 12 months to 31 Dec ($m) Fair Value Reconciliation Fair Value Development Maintenance Lease Net Other Fair Value % of 31 Dec 17 & Other Capex Capex Incentives Acquisitions Sales Revaluations Adjustments 31 Dec 18 Portfolio 2017 2018 Varian
Slide 79: Income and Fair Value Schedule (continued)
Income 12 months to 31 Dec ($m) Fair Value Reconciliation Fair Value Development Maintenance Lease Net Other Fair Value % of 31 Dec 17 & Other Capex Capex Incentives Acquisitions Sales Revaluations Adjustments 31 Dec 18 Portfolio 2017 2018 Variance ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) (%) Au
Slide 80: Logistics Portfolio Summary
LOGISTICS PORTFOLIO 73 Logistics Portfolio Summary Logistics Occupancy GLA (100% 31 Dec 18 31 Dec 18 Inc. WALE Interest) Fair Value Cap Rate Inc. Signed Heads of by Income State Ownership (sqm) ($m) (%) Actual Leases Agreement (Years) GPT Portfolio Rosehill Business Park, Camellia NSW 100% 41,900 86
Slide 81: Logistics Occupancy
Logistics Occupancy GLA (100% 31 Dec 18 31 Dec 18 Inc. WALE Interest) Fair Value Cap Rate Inc. Signed Heads of by Income State Ownership (sqm) ($m) (%) Actual Leases Agreement (Years) Citiwest Industrial Estate, Altona North VIC 100% 90,100 90.0 6.29% 100.0% 100.0% 100.0% 3.4 Citiport Business Park,
Slide 82: Independent Valuation Summary
LOGISTICS PORTFOLIO 75 Independent Valuation Summary 100% of the logistics portfolio was valued independently in the 12 months to 31 December 2018. Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) GPT Portfolio Rosehill Business Park, Camellia NSW 100% 31 Dec 18 Savills 86.0 5.75%
Slide 83: Independent Valuation Summary (continued)
Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) 54 Eastern Creek Drive, Eastern Creek NSW 100% 31 Dec 18 CBRE 51.8 5.50% Citiwest Industrial Estate, Altona North VIC 100% 31 Dec 18 Savills 90.0 6.29% Citiport Business Park, Port Melbourne VIC 100% 31 Dec 18 JLL 82.5 6.25% Austrak
Slide 84: Logistics – Sydney
LOGISTICS PORTFOLIO 77 Logistics Logistics–-Sydney Sydney sqm Sydney Industrial Supply ('000 m 2) • Economic conditions are positive with infrastructure investment benefiting key logistics 1,000 900 hubs and should underpin the demand drivers. 800 • Supply is forecast to moderate in 2019 and 700 His
Slide 85: Logistics – Melbourne
Logistics – Melbourne Logistics - Melbourne Melbourne Industrial Supply ('000 m 2) • Demand remained above historical averages in sqm 2018 due to solid activity in the secondary market. 1,000 900 • Future supply expectations are subdued over the 800 Historical near term horizon. 700 average 600 • De
Slide 86: Logistics – Brisbane
LOGISTICS PORTFOLIO 79 Logistics – Brisbane Logistics - Brisbane sqm Brisbane Industrial Supply ('000 m2) • Gross take-up remained steady in 2018 as the 1,000 improving economic conditions filter through. 900 800 • Low levels of supply will help support the Historical 700 average market as it gradua
Slide 87: Sydney Industrial Market
Sydney Industrial Market GPT GPT Industrial Assets Logistics Assets Erskine Park Eastern Creek 1 Erskine Park 2 Eastern Creek 3 Huntingwood Dr, Huntingwood 4 Victoria St, Wetherill Park 5 Pine Rd, Yennora 6 Rosehill Business Park, Camellia 7 Derby St, Silverwater 8 Holker St, Newington 9 Sydney Olym
Slide 88: Logistics Portfolio
LOGISTICS PORTFOLIO 81 Sunshine Business Estate, Sunshine, VIC
Slide 89: Development
2018 ANNUAL RESULT DEVELOPMENT Development
Slide 90: Development Overview
Development Overview Forecast Forecast Cost to Complete Target Total Cost Completion Sector Ownership Interest (%) ($m) GPT’s Share ($m) Fund’s Share ($m) Date Underway 50 Old Wallgrove Road, Eastern Creek, NSW Logistics 100% GPT 53 6 0 1H 2019 Sunshine Plaza, QLD Retail 50% GPT 216 33 0 1H 2019 38
Slide 91: Rouse Hill
DEVELOPMENT 83 Rouse Hill Rouse Hill M1 Cudgegong Rd Kellyville A3 A2 Showground Bella Vista Cherrybrook A1 M7 A28 Norwest Castle Hill Macquarie M2 Epping University A1 A40 A6 A28 Macquarie Park A38 North Ryde Chatswood M4 Crows Nest A3 A40 City centres A28 Victoria Cross Motorways Barangaroo A6 Mar
Slide 92: Sydney Olympic Park
Park A6 A22 A22 A28 A34 A6 Sydney Olympic Park A34 M5 City centres M7 Motorways M2 Arterial roads A40 A28 Proposed Metro West A6 Parramatta A3 West Connex M4 Camellia Sydney A1 A40 A28 Olympic Park A6 Martin Place Sydney Central CBD A22 A22 A28 M1 A34 A36 A6 A34 M5 Sydney Olympic Park development vi
Slide 93: Camellia
River M Grand Avenu 85 M4 DEVELOPMENT matta Parra Camellia Camellia Precinct Camellia Town Centre James Ruse Drive GPT Site Camellia Precinct Parra Camellia Town Centre matta Parramatta CBD River Parramatta CBD Grand Avenue s Ruse Drive Parra matta River Jame Parramatta CBD Grand Avenue r Rive D uc
Slide 94: Funds Management
2018 ANNUAL RESULT FUNDS MANAGEMENT Funds Management
Slide 95: GPT Funds Management Summary
GPT Funds Management Summary The Group’s Funds Management platform provides GPT with an important source of income through funds management, property management and development management fees. In addition, the platform provides GPT investors with access to a steady income stream through a significa
Slide 96: GPT Funds Management Overview
FUNDS MANAGEMENT 87 GPT Funds Management Overview Historical Growth in Funds under Management Growth in Funds under Management for the 12 months to 31 December 2018 $12.4b $12.6b $12.0b $10.4b $12.0b $0.7b $0.1b ($0.1b) $12.6b $9.6b $10.0b $7.1b $6.6b $5.3b $5.6b Dec 2010 Dec 2011 Dec 2012 Dec 2013
Slide 97: GWOF Overview
GWOF Overview GWOF provides wholesale investors with exposure to 17 high quality office assets, located across Australia’s key CBD office markets. At 31 December 2018, the Fund had a value of $7.8 billion. December 2018 December 2017 GWOF Ownership Composition1 As at 31 December 2018 Number of Asset
Slide 98: GWOF Capital Management
FUNDS MANAGEMENT 89 GWOF Capital Management Total borrowings for the Fund at 31 December 2018 were $1,243 million resulting in net gearing of 15.5%. GWOF Capital Management Summary as at 31 December 2018 Net Gearing 15.5% Weighted Average Cost of Debt 4.0% Fees and Margins (included in above) 1.6% W
Slide 99: GWSCF Overview
GWSCF Overview GWSCF provides wholesale investors with exposure to 8 high quality retail assets. At 31 December 2018, the Fund had a value of $4.8 billion. December 2018 December 2017 GWSCF Ownership Composition1 As at 31 December 2018 Number of Assets 8 8 Total Assets $4.8b $4.9b Net Gearing 24.4%
Slide 100: GWSCF Capital Management
FUNDS MANAGEMENT 91 GWSCF Capital Management Total borrowings for the Fund at 31 December 2018 were $1,194 million resulting in net gearing of 24.4%. GWSCF Capital Management Summary as at 31 December 2018 Net Gearing 24.4% Weighted Average Cost of Debt 4.0% Fees and Margins (included in above) 1.5%