Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — H1 FY2014 Earnings Presentation
31 slides from Growthpoint Properties Australia's earnings presentation, Feb 17, 2014
Slide 1: Half Year Results Presentation
27-49 LENORE DR, ERSKINE PARK, NSW GROWTHPOINT PROPERTIES AUSTRALIA (ASX CODE: GOZ) For personal use only HALF YEAR RESULTS PRESENTATION Six months ended 31 December 2013 17 February 2014 Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093
Slide 2: Important Information and Disclaimer
IMPORTANT INFORMATION DISCLAIMER rules and regulations of the U.S. Securities and Exchange Commission. Forward-looking statements including projections, indications or guidance This presentation and its appendices (“Presentation”) is dated 17 February Investors should also be aware that certain fina
Slide 3: Contents
CONTENTS HIGHLIGHTS FOR THE HALF YEAR 4 EXECUTIVE FINANCIAL RESULTS MANAGEMENT TEAM For personal use only Financial Results 6 Movements in Net Tangible Assets per Stapled Security 7 Debt Management – Interest Rate Hedging 8 Debt Management – Gearing 9 EQUITY & SECURITYHOLDERS $150 Million Equity Rai
Slide 4: Highlights for the Half Year
HIGHLIGHTS FOR THE HALF YEAR For personal use only SECURITY PRUDENT HOLDER TRANSACTIONS CAPITAL INCOME RETURNS COMPLETED MANAGEMENT SECURITY DISTRIBUTIONS ›› Total securityholder ›› Raised $174.7 million ›› NTA per security ›› Long WALE of 6.6 years ›› 9.4 cps for 1H143 (up return of 21.1%¹ for in n
Slide 5: Financial Results
For personal use only FINANCIAL RESULTS 81 DERBY STREET, SILVERWATER, NSW
Slide 6: Financial Results
FINANCIAL RESULTS For personal use only HY 2014 HY 2013 CHANGE % CHANGE STATUTORY ACCOUNTING PROFIT ($'000) 63,492 33,967 29,525 86.9% STATUTORY ACCOUNTING PROFIT PER SECURITY (¢) 15.0 8.7 6.3 71.9% DISTRIBUTABLE INCOME ($'000) 42,049 36,820 5,229 14.2% DISTRIBUTABLE INCOME PER SECURITY (¢) 9.9 9.4
Slide 7: Movements in Net Tangible Assets per Stapled Security
MOVEMENTS IN NET TANGIBLE ASSETS PER STAPLED SECURITY For personal use only $2.12 $2.10 ›› The 5.5% increase in NTA per stapled security is attributable $2.08 to increases in property values, $2.06 a reduction in the interest rate $2.04 swap book liability, Growthpoint $2.02 retaining profit and the
Slide 8: Debt Management: Interest Rate Hedging
DEBT MANAGEMENT INTEREST RATE HEDGING For personal use only HEDGING MATURITY PROFILE $250m 4.70% $200m 4.50% $150m 4.30% $100m 4.10% $50m 3.90% 0 3.70% 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 Nominal value of hedging expiring - $40m - - $60m $205m $160m - - $200m Weighted average interest
Slide 9: Debt Management: Gearing
DEBT MANAGEMENT GEARING For personal use only REDUCTION IN GEARING AND COST OF DEBT AS AT 31 DECEMBER 60% 10% BALANCE SHEET GEARING 9% ALL-IN COST OF DEBT 50% 8% 40% 7% 6% 30% 5% 4% 20% 3% 10% 2% 1% 0 0 2009 2010 2011 2012 2013 Balance sheet gearing 55.3% 54.0% 45.6% 46.8% 40.5% All-in cost of debt
Slide 10: Equity & Security Holders
BLDG C, GORE HILL TECHNOLOGY PARK, 219-247 PACIFIC HWY, ARTARMON, NSW For personal use only EQUITY & SECURITY HOLDERS
Slide 11: $150 Million Equity Raising
$150 MILLION EQUITY RAISING For personal use only ›› $150 million equity raising completed in October and November 2013 ›› Offer price of $2.45 per new Growthpoint stapled security (well above NTA and a small discount to trading prices) ›› $50 million placement to existing and new institutional inve
Slide 12: Equity Capital
EQUITY CAPITAL For personal use only MARKET CAPITALISATION & FREE FLOAT AS AT 31 DECEMBER DISTRIBUTION REINVESTMENT PLAN $1,200m 100% DISTRIBUTION Price Discount Amount Securities Participation $1,100m PERIOD raised issued 90% $1,000m 80% $ % $ no. % $900m $800m 70% June 2012 2.02 3 21.6m 10.7m 66.4
Slide 13: Securityholder Returns
SECURITYHOLDER RETURNS For personal use only SECURITY PRICE DISTRIBUTIONS AS AT 31 DECEMBER PER STAPLED SECURITY $2.50 19¢ $2.40 18¢ $2.30 17¢ $2.20 16¢ $2.10 15¢ $2.00 14¢ $1.90 13¢ $1.80 12¢ $1.70 11¢ $1.60 10¢ 2009 2010 2011 2012 2013 FY10 FY11 FY12 FY13 FY14 projected $1.64 $1.93 $1.93 $2.21 $2.
Slide 14: Comparative Returns
COMPARATIVE RETURNS For personal use only 21.1% TOTAL RETURN COMPARISON OVER 5 YEARS TO 31 DECEMBER 20131 25% TOTAL SECURITYHOLDER RETURN FOR CY2013* 20% 15% 17.5% p.a. 10% 5% TOTAL SECURITYHOLDER 0 RETURN GOZ A-REIT2 GOVT CASH4 SHARES5 BONDS3 for five years to 31 December 2013* 17.5% 8.8% 4.3% 4.0%
Slide 15: Property Portfolio
5 VIOLA PLACE, BRISBANE AIRPORT, QLD For personal use only PROPERTY PORTFOLIO
Slide 16: Property Portfolio Overview
PROPERTY PORTFOLIO OVERVIEW For personal use only GROWTHPOINT IS WELL POSITIONED FOR FUTURE GROWTH ›› The property portfolio is modern, well leased to quality tenants with a: −− WALE of 6.6 years, −− a rising rental income through fixed annual rental increases, and −− a property occupancy of 98%. ››
Slide 17: Property Portfolio Overview (Continued)
PROPERTY PORTFOLIO OVERVIEW (CONTINUED) For personal use only 56+44+F 44% TOP TEN TENANTS OFFICE BY PASSING RENT MAJOR TENANT % of Portfolio Tenant WALE WOOLWORTHS 27% 8.7yrs GE CAPITAL FINANCE AUSTRALASIA 7% 4.2yrs LINFOX 5% 9.4yrs COMMONWEALTH OF AUSTRALIA - DEEWR 4% 3.2yrs 56% SINCLAIR KNIGHT MER
Slide 18: Property Portfolio Key Metrics
PROPERTY PORTFOLIO KEY METRICS AS AT 31 DECEMBER 20131 For personal use only INDUSTRIAL OFFICE TOTAL NO. OF PROPERTIES 34 15 49 TOTAL / AVERAGE VALUE $1,001.4m / $29.5m $799.4m / $53.3m $1,800.8m / $36.8m % OF PORTFOLIO VALUE 56% 44% 100% TOTAL / AVERAGE LETTABLE AREA 848,638 m2 / 24,960 m2 147,326
Slide 19: Leasing
LEASING For personal use only LEASE EXPIRY PROFILE PER FINANCIAL YEAR 100% 80% 60% 40% 20% 0 VACANT FY14 FY15 FY16 FY17 FY18 FY19 FY20+ 2% 3% 5% 4% 9% 12% 8% 57% RECENT LEASING TRANSACTIONS PROPERTY TENANT Space Leased Lease term Lease start date 333 ANN STREET, BRISBANE Anne Street Partners 867/m²
Slide 20: New Property Acquisitions
NEW PROPERTY ACQUISITIONS For personal use only 213-215 ROBINSONS PURCHASE PRICE 9-11 DRAKE PURCHASE PRICE 19&20 SOUTHERN CRT, PURCHASE PRICE 120-132 ATLANTIC PURCHASE PRICE RD, RAVENHALL, VIC BOULEVARD, KEYSBOROUGH, VIC4 DRIVE, KEYSBOROUGH, $23.2m ALTONA, VIC $24.1m 1 $18.8m 1 VIC $17.3m Located in
Slide 21: Conclusion
522-550 WELLINGTON ROAD, MULGRAVE, VIC For personal use only CONCLUSION
Slide 22: Investment Case for GOZ
INVESTMENT CASE FOR GOZ For personal use only ›› Excellent property portfolio fundamentals – quality tenants, diversified across office and industrial sectors, located in every Australian State and the ACT, 6.6 year WALE, negligible vacancies (2%) and limited lease expiry risk in the short term ›› R
Slide 23: Outlook and Strategy
OUTLOOK AND STRATEGY For personal use only THE FOCUS FOR GROWTHPOINT IN THE SHORT-MEDIUM TERM REMAINS: ›› Continuing to provide growing distributions to securityholders ›› Continued growth and diversification of the property portfolio via M&A transactions, direct property acquisitions and fund throu
Slide 24: Appendices
For personal use only APPENDICES 19 & 20 SOUTHERN COURT, KEYSBOROUGH, VIC
Slide 25: Growthpoint Properties Limited (GRT) - South Africa
APPENDIX 1 GROWTHPOINT PROPERTIES LIMITED (GRT) - SOUTH AFRICA1 For personal use only ›› GRT owns 63.5% of the securities of GOZ (at 31 December KEY FACTS 2013) and is its major securityholder LISTING GRT is listed on the Johannesburg Stock Exchange (JSE) ›› GRT first invested in GOZ in August 2009.
Slide 26: Distributable Income
APPENDIX 2 DISTRIBUTABLE INCOME RECONCILIATION FROM STATUTORY PROFIT TO DISTRIBUTABLE INCOME For personal use only HY 2014 HY 2013 CHANGE CHANGE $’000 $’000 $’000 % PROFIT AFTER TAX 63,492 33,967 29,525 86.9% LESS NON-DISTRIBUTABLE ITEMS: - Straight line adjustment to property revenue (2,856) (2,118
Slide 27: Distributable Income (Cont)
APPENDIX 2 DISTRIBUTABLE INCOME (CONT) COMPONENTS OF DISTRIBUTABLE INCOME For personal use only HY 2014 HY 2013 CHANGE CHANGE $’000 $’000 $’000 % Property income 83,764 73,037 10,727 14.7% Property expenses (11,348) (9,611) (1,737) 18.1% NET PROPERTY INCOME 72,416 63,426 8,990 14.2% Interest income
Slide 28: Financial Position
APPENDIX 3 FINANCIAL POSITION AS AT 31 DEC 2013 AS AT 30 JUN 2013 For personal use only ($’000) ($’000) ASSETS Cash and cash equivalents 9,412 9,405 Investment properties 1,791,858 1,646,915 Other receivables - 20,951 Other assets 7,712 3,127 TOTAL ASSETS 1,808,982 1,680,398 LIABILITIES Borrowings 7
Slide 29: Top Legal Securityholders
APPENDIX 4 TOP 20 LEGAL SECURITYHOLDERS REFER TO THE GRAPH AT THE BOTTOM OF SLIDE 12 FOR MORE INFORMATION IN RELATION TO BENEFICIAL SECURITYHOLDERS. RANK NAME NO. OF UNITS % OF UNITS For personal use only 1. GROWTHPOINT PROPERTIES LIMITED 302,107,917 63.51 2. NATIONAL NOMINEES LIMITED 32,502,960 6.8
Slide 30: Glossary
GLOSSARY 1H14 6 months ended 31 December 2013 For personal use only 2H14 6 months ending 30 June 2014 A-REIT Australian Real Estate Investment Trust BILAT the debt facility agreement between Growthpoint and National Australia Bank Limited dated 17 February 2012 (as amended) CPS cents per stapled sec
Slide 31: Thank You
120 NORTHCORP BOULEVARD, BROADMEADOWS, VIC For personal use only THANK YOU For more information contact us at: Email: info@growthpoint.com.au Investor services line: 1800 260 453 www.growthpoint.com.au Growthpoint Properties Australia Level 22, 357 Collins Street Melbourne VIC 3000
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