Goodman Group · ASX:GMG
Goodman — Q1 FY2018 Earnings Presentation
22 slides from Goodman's earnings presentation, Nov 9, 2017
Slide 1: Q1 FY2018 Quarterly Operational Update
GOODMAN GROUP " Q1 FY2018 QUARTERLY OPERATIONAL UPDATE 9 November 2017
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER For personal use only + This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071), Goodman Funds Management Limited (ABN 48 067 796 641; AFSL Number 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839) and Good
Slide 3: Contents
CONTENTS For personal use only + Section 1 Quarterly operational highlights + Section 2 Capital management + Section 3 Quarterly operations + Appendices - Leasing - Development - Management platform 3
Slide 4: Quarterly Operational Highlights
SECTION 1 - QUARTERLY OPERATIONAL HIGHLIGHTS For personal use only + Section 1 Quarterly Operational Highlights Centenary Distribution Centre, Australia
Slide 5: Operational Highlights
QUARTERLY OPERATIONAL HIGHLIGHTS For personal use only + Key highlights for the three months to 30 September 2017 include – $1.25 billion of asset sales executed as part of portfolio repositioning – $3.5 billion of development work in progress maintained with $0.5 billion of commencements – $33.9 bi
Slide 6: Operational Highlights
QUARTERLY OPERATIONAL HIGHLIGHTS For personal use only + Asset rotation and focus on gateway markets almost complete with a further $1.25 billion of asset sales in the quarter in line with guidance – ABPP sale completed during the quarter for ~$800 million – China and Australia portfolios transacted
Slide 7: Snapshot
SNAPSHOT For personal use only XX%¹ XX%¹ 0%¹ XX%¹ 7
Slide 8: Macro Environment Favours Logistics Real Estate
MACRO ENVIRONMENT FAVOURS LOGISTICS REAL ESTATE For personal use only + Macro structural factors continue to positively impact demand for logistics real estate Global consumption1 - Growing consumer demand in urban centres as consumption per capita increases significantly1 - Disruption from rapid ch
Slide 9: Liability Management
SECTION 2 - LIABILITY MANAGEMENT For personal use only + Section 1 Quarterly Operational Highlights Centenary Distribution Centre, Australia
Slide 10: Liability Management
LIABILITY MANAGEMENT For personal use only + Over the past few years the Group has been implementing a robust capital management framework, which includes a revised Financial Risk Management (FRM) policy. This provides; – Stronger balance sheet which has been reflected in higher credit ratings – Enh
Slide 11: Liability Management
LIABILITY MANAGEMENT For personal use only Significant capital management exercise undertaken during the quarter + Extended debt maturity profile for the long term to ensure the Group has the ability to continue to operate efficiently and invest through the cycle mitigating volatility in capital mar
Slide 12: Liability Management
LIABILITY MANAGEMENT For personal use only Debt Maturity Profile Pre / Post Liability Management Transaction Summary Drawn debt Type Size Maturity New issue EUR500m 2025 New issue US525m 2028 New issue US325m 2037 Repurchase (US325m) 2020 Tender (US325m) 2021 Tender (GBP129m) 2018 Tender (US220m) 20
Slide 13: Quarterly Operations
SECTION 3 - QUARTERLY OPERATIONS For personal use only + Section 1 Quarterly Operational Highlights Centenary Distribution Centre, Australia
Slide 14: Operations - Own
QUARTERLY OPERATIONS - OWN For personal use only + Underlying property fundamentals in our global portfolio remain sound Total AUM by type – Leased 0.9 million sqm across the platform over the period equating to $116 million of annual net property income – Maintained occupancy at 98% – Retention rem
Slide 15: Operations - Leasing
QUARTERLY OPERATIONS - LEASING¹ For personal use only Across the Group and Partnerships: + 0.9 million sqm leased during the period + Reversions of 3.2% on leasing transactions + High occupancy across the portfolio, increased to 98% Region Leasing area (sqm) Annual NPI ($M) Average lease term (years
Slide 16: Operations - Own
QUARTERLY OPERATIONS - OWN For personal use only Sale Leasing Costco, Goodman Commerce Centre, Eastvale, USA JD.com, Landport Logistics Estate, Tianjin, China Kuehne + Nagel, Tiel Logistics Centre, Netherlands Amazon, Pforzheim, Germany Vatry, Framce Customer Costco Customer JD.com Customer Keuhne +
Slide 17: Operations - Develop
QUARTERLY OPERATIONS - DEVELOP For personal use only + Development WIP of $3.5 billion across 76 projects with a Development WIP forecast yield on cost of 7.7% + Development commencements of $0.5 billion with 55% pre- committed and 90% developed for Partnerships or third parties + Development comple
Slide 18: Operations - Develop
QUARTERLY OPERATIONS - DEVELOP For personal use only Q1 FY18 Developments Completions Commencements Work in progress Value ($m) 516 486 3,482 Area (m sqm) 501 300 2,214 Yield (%) 8.1 7.8 7.7 Pre-committed (%) 87 55 62 Weighted Average Lease Term (years) 11.6 8.5 9.5 Development for Third Parties or
Slide 19: Operations - Develop
QUARTERLY OPERATIONS - DEVELOP For personal use only Sale Leasing Cdiscount, Saint Marde, France syncreon Technology, Carlise, Central PA, USA Chinese 3PL, Goodman Boluo Logistics Park, China Lettable area 24,000 sqm Lettable area 93,634 sqm Lettable area 86,818 sqm Amazon, Pforzheim, Germany Vatry,
Slide 20: Operations - Manage
QUARTERLY OPERATIONS - MANAGE For personal use only + External AUM of $30.2 billion Total AUM – Development work book and revaluations offsetting asset sale + Completion of sale of ABPP + Dilutionary effect from asset sales expected to moderate as targeted program reaches completion and the Partners
Slide 21: Management Platform
MANAGEMENT PLATFORM¹ For personal use only GAIP GHKLP GEP GAP GCLP GMT GJCP GNAP GUKP 1 Total assets $6.9bn $4.7bn $4.6bn $3.6bn $3.0bn $2.4bn $2.1bn $1.3bn $0.3bn² GMG co-investment 27.9% 20.0% 20.4% 19.9% 20.0% 21.1% 17.3% 55.0% 33.3% GMG co-investment $1.3bn $0.7bn $0.5bn $0.6bn $0.5bn $0.3bn $0.
Slide 22: Thank you
For personal use only thank+you