Gdi Property Group · ASX:GDI
Gdi Property — FY2016 Earnings Presentation
48 slides from Gdi Property's earnings presentation, Aug 22, 2016
Slide 1: Annual results presentation
For personal use only GDI PROPERTY GROUP Annual results presentation 22 August 2016
Slide 2: Disclaimer
Disclaimer This presentation has been prepared and issued by GDI Property Group Limited (ACN 166 479 189) and GDI Funds Management Limited (ABN 34 107 354 003, AFSL Number 253 142) as responsible entity of GDI Property Trust (ARSN 166 598 161). Shares in GDI Property Group Limited are stapled to uni
Slide 3: Introduction
For personal use only INTRODUCTION LINKING EQUITY MILL GREEN, TO PERFORMANCE PERTH 2
Slide 4: Overview
Overview For personal use only NTA – $1.01 per security FFO of 9.11 cents per Distribution of 7.75 cents security per security FFO CAGR of 12.14% Absolute Total Return in Absolute Total Return since p.a. since IPO FY16 of 9.85% IPO – 12.54% p.a. LINKING EQUITY TO PERFORMANCE 3
Slide 5: Continue to deliver on strategy
Continue to deliver on strategy FFO1,2 of 9.11 cents per security Absolute Total Return For personal use only of 10.83%, or 0.89 cents per security, on FY15 16% CAGR of 12.14% p.a. since IPO 14% Does not include profit on sale of 233 Castlereagh Street, 12% Sydney 10% NTA3 of $1.01 per sec
Slide 6: Highlights
Highlights Completed the sale of 233 Castlereagh Street, Sydney, for Cash profit from sale of 233 Castlereagh Street, Sydney $156.0 million For personal use only $’000 Cash profit of $32.3 million not included in either FFO or AFFO Acquisition price 121,000 Acquisition costs 664 Acquired 50 Ca
Slide 7: Financial results
For personal use only FINANCIAL RESULTS LINKING EQUITY 66 GOULBURN TO ST, PERFORMANCE SYDNEY 6
Slide 8: Contributors to FFO and AFFO
Contributors to FFO and AFFO FY16 FY15 Property Division FFO due to sale of 233 Castlereagh $’000 $’000 Street, Sydney For personal use only Property Division FFO 60,309 62,750 All other assets like for like increased FFO contribution by 3.62% Funds Management FFO 4,280 2,930 Other 52 - Funds
Slide 9: Balance sheet in a strong position
Balance sheet in a strong position 2016 GDI Property Group’s balance sheet is in a sound $'000 position, with a loan to value ratio (LVR) on its For personal use only Current assets primary facility of 36.43% vs a bank covenant LVR of 50.00% Cash and cash equivalents 28,394 Other assets 4,849 Si
Slide 10: Debt profile
Debt profile Drawn debt on the primary facility of $289.9 million Undrawn debt of $35.1 million to fund working capital requirements For personal use only Debt provided to GDI No. 42 Office Trust, secured only by the assets in GDI No. 42 Office Trust, included in consolidated accounts Facility
Slide 11: Interest rate hedging
Interest rate hedging Board hedging policy of at least 50% of drawn debt hedged Have not terminated or restructured any hedges For personal use only Currently 52% hedged (primary facility) Drawn debt of GDI No. 42 Office Trust unhedged All in cost of drawn debt for the period of 4.18% (inc
Slide 12: The property portfolio
For personal use only THE PROPERTY PORTFOLIO LINKING 307 EQUITY QUEEN TO PERFORMANCE ST, BRISBANE 11
Slide 13: Portfolio overview
Portfolio overview For personal use only LINKING EQUITY TO PERFORMANCE 12
Slide 14: Portfolio overview
Portfolio overview Total NLA1 Portfolio occupancy1,2 WALE (by NLA) 1,2 WACR1 For personal use only 16 August 2016 148,357 81% 4.7 years 7.6% 30 June 2015 108,374 89% 3.8 years 7.7% Portfolio lease expiry profile as at 16 August 2016 50% 40% 30% 20% 10% 0% Vacant FY 17 FY 18 FY 19 FY 20 FY 21 FY 22+
Slide 15: Mill Green Complex
Mill Green Complex For personal use only LINKING EQUITY TO PERFORMANCE 14
Slide 16: Perth Market overview
Perth Market overview What we said August 2015 What we are saying now For personal use only Current market vacancy rate of 16.6%, up from 14.8% in Current market vacancy rate of 21.8%, up from 16.6% January 2015 twelve months ago Expect vacancy to peak at +/- 20% in late 2015, early With lit
Slide 17: Mill Green Complex
Mill Green Complex 197 St Georges Terrace near full occupancy Key metrics as at: Aug 2016 Jun 2016 Jun 2015 A small 360sqm vacancy, created from an existing tenant For personal use only reducing its NLA as part of a lease extension, leased within Independent valuation date 31 Dec 15 31 Dec 14 a
Slide 18: St Georges Terrace, Perth
197 St Georges Terrace, Perth For personal use only Actual view from Level 10 Refurbished foyer LINKING EQUITY TO PERFORMANCE 17
Slide 19: St Georges Terrace, Perth
197 St Georges Terrace, Perth Lease expiry profile as at 16 August 2016 Key metrics as at: Aug 2016 Jun 2016 Jun 2015 100% For personal use only Independent valuation date 31 Dec 15 31 Dec 14 Independent valuation ($M) 241.00 239.00 80% Independent valuation /NLA ($) 9,076 9,001 Carrying value ($M)
Slide 20: Mill Street, Perth
5 Mill Street, Perth For personal use only Mill Green LINKING EQUITY TO PERFORMANCE 19
Slide 21: Mill Street, Perth
5 Mill Street, Perth Lease expiry profile as at 16 August 20161 Key metrics as at: Aug 2016 Jun 2016 Jun 2015 100% For personal use only Independent valuation date 31 Dec 15 31 Dec 14 Independent valuation ($M) 53.00 54.00 80% Independent valuation /NLA ($) 7,376 7,515 Carrying value ($M) 53.24 54.6
Slide 22: Mill Street, Perth
1 Mill Street, Perth Key metrics as at: Aug 2016 Jun 2016 Jun 2015 For personal use only Independent valuation date 31 Dec 15 31 Dec14 Independent valuation ($M) 32.00 41.00 Independent valuation / NLA ($) 4,813 6,167 Carrying value ($M) 32.06 41.51 Capitalisation rate 8.25% 8.25% Discount rate 9.50
Slide 23: Goulburn Street, Sydney
66 Goulburn Street, Sydney Successfully extended three tenants over four floors with FY17 expiries (3,900sqm) For personal use only Consolidated Media Holdings Limited (CMHL) vacating 10,432sqm (11 floors) in August 2016, with some floors surrendered early to facilitate new leasing activity Fi
Slide 24: Goulburn Street, Sydney
66 Goulburn Street, Sydney Lease expiry profile as at 16 August 20161 Key metrics as at: Aug 2016 Jun 2016 Jun 2015 100% For personal use only Independent valuation date 30 Jun 16 30 Jun 15 Independent valuation ($M) 187.50 157.00 80% Independent valuation /NLA ($) 8,141 6,817 Carrying value ($M) 18
Slide 25: Queen Street, Brisbane
307 Queen Street, Brisbane Momentum in leasing leading to results Significant increase in occupancy to 80% at 30 June 2016, up For personal use only from 73% at 30 June 2015 Including signed leases and heads of agreement executed post 30 June 2016, occupancy has increased to 87% WALE of 4.0
Slide 26: Queen Street, Brisbane
307 Queen Street, Brisbane Lease expiry profile as at 16 August 20161 Key metrics as at: Aug 2016 Jun 2016 Jun 2015 100% For personal use only Independent valuation date 31 Dec 15 30 Jun 15 Independent valuation ($M) 126.50 122.50 80% Independent valuation /NLA ($) 6,465 6,260 Carrying value ($M) 12
Slide 27: Grenfell Street, Adelaide
25 Grenfell Street, Adelaide Vacancy increased to 23% as a result of Department of Water vacating 4,176sqm in April 2016; and For personal use only Minter Ellison exercising a right to break over 408sqm Completed the refurbishment of the vacated Department of Water floors Pursuing several
Slide 28: Grenfell Street, Adelaide
25 Grenfell Street, Adelaide Lease expiry profile as at 16 August 20161 Key metrics as at: Aug 2016 Jun 2016 Jun 2015 100% For personal use only Independent valuation date 31 Dec 15 31 Dec 14 Independent valuation ($M) 114.00 109.00 80% Independent valuation /NLA ($) 4,490 4,294 Carrying value ($M)
Slide 29: Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise Settled the acquisition of 50 Cavill Avenue, Surfers Paradise on 1 February 2016 For personal use only Immediately commenced a refurbishment program Ground floor foyer upgrade completed Upgrade of the lifts and replacement of the chillers Full refurbishme
Slide 30: Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise Lease expiry profile as at 16 August 20161 Key metrics as at: Aug 2016 Jun 2016 Feb 2016 100% For personal use only Independent valuation date 30 Jun 16 8 Dec15 Independent valuation ($M) 55.00 48.75 80% Independent valuation /NLA ($) 3,318 2,943 Carrying value ($M
Slide 31: Liverpool Road, Ashfield
223 – 237 Liverpool Road, Ashfield Settled the acquisition on 17 December 2015 Completed the establishment of GDI No. 42 Office Trust on For personal use only 16 June 2016 Income generated during this holding period recognised as interest income in both the consolidated accounts and GDI Proper
Slide 32: Liverpool Road, Ashfield
223 – 237 Liverpool Road, Ashfield Lease expiry profile as at 16 August 2016 Key metrics as at: Aug 2016 Jun 2016 100% For personal use only Independent valuation date 11 Feb 16 Independent valuation ($M) 36.00 80% Independent valuation /NLA ($) 3,704 Carrying value ($M) 36.00 60% Capitalisation rat
Slide 33: Stanley Street, Townsville
235 Stanley Street, Townsville Exchanged to acquire the property on 19 February 2016 with occupancy of 74% and one lease (729sqm) expiring May 2016 For personal use only May expiry now extended for five years until May 2021 Signed heads of agreement for another 1,745sqm (net increase of 1,320s
Slide 34: Stanley Place, Townsville
235 Stanley Place, Townsville Lease expiry profile as at 16 August 20161 Key metrics as at: Aug 2016 Jun 2016 100% For personal use only Independent valuation date 1 Mar 16 Independent valuation ($M) 52.50 80% Independent valuation /NLA ($) 3,806 Carrying value ($M) 52.50 60% Capitalisation rate 9.0
Slide 35: Funds business
For personal use only FUNDS BUSINESS LINKING 25 EQUITY GRENFELL ST,TO PERFORMANCE ADELAIDE 34
Slide 36: Funds Management division
Funds Management division Continue to steadily grow assets under management Movement in AUM (AUM) For personal use only 400 $184.4 million at IPO now $356.1 million 350 Established GDI No. 42 Office Trust with AUM of $88.5 million 300 GDI Property Group holds 43.68% of the units on 250 $ mil
Slide 37: Guidance
For personal use only GUIDANCE LINKING 66 EQUITY GOULBURN TO ST, PERFORMANCE SYDNEY 36
Slide 38: The GDI Property Group business model
The GDI Property Group business model Maintaining distributions, funding capex and For personal use only GDI Property Group’s office market fundamentals incentives with a core-plus strategy Buy well located buildings with good light and easily We currently maintain a progressive distribution policy
Slide 39: FY17 and beyond
FY17 and beyond Nearing completion of asset management strategies on a number of assets 66 Goulburn Street, Sydney For personal use only 307 Queen Street, Brisbane 25 Grenfell Street, Adelaide Possible sale of one or more of these assets during FY17 In the absence of acquisition opportun
Slide 40: Appendix
For personal use only APPENDIX LINKING 307 EQUITY QUEEN TO PERFORMANCE ST, BRISBANE 39
Slide 41: Profit or Loss
Profit or Loss Group 2016 2015 For personal use only $'000 $'000 Revenue from ordinary activities Property income 74,558 77,178 Funds management income 3,709 2,908 Interest revenue 2,508 233 Other income 16 - Total revenue from ordinary activities 80,791 80,320 Net fair value gain on interest rate s
Slide 42: NPAT to AFFO
NPAT to AFFO Group For personal use only 2016 2015 $'000 $'000 Total comprehensive income for the year 47,701 75,940 Portfolio acquisition and other transaction costs 8,583 8,988 Contribution resulting from consolidation of GDI No. 42 Office Trust 743 - Cash received from guarantees 2,171 6,762 Stra
Slide 43: Property by property AIFRS NPI and FFO
Property by property AIFRS NPI and FFO FY16 FY15 $m $m For personal use only AIFRS AIFRS NPI1 FFO NPI1 FFO Commentary • FY16 AIFRS NPI (“NPI”) benefited from the fixed rental increases, the full year income from three new leases at 197 St Georges Terrace and increased occupancy at 5 Mill Street • FF
Slide 44: GDI Total Return Fund and GDI Office Trust
GDI No. 27 Total Return Fund GDI No. 29 GDI Office Trust Key statistics Key statistics For personal use only Established June 2007 Established December 2008 AUM $14 million AUM $9 million Gearing 35% Gearing 65% GDI Property Group GDI Property Group - - ownership ownership FY16 distributions FY16 di
Slide 45: GDI Brisbane Office Trust and Perth CBD Office Trust
GDI No. 33 Brisbane Office Trust GDI No. 36 Perth CBD Office Trust Key statistics Key statistics For personal use only Established May 2010 Established October 2012 AUM $36 million AUM $129 million Gearing 28% Gearing 48% GDI Property Group - GDI Property Group ownership - ownership FY16 distributio
Slide 46: GDI Diversified Property Trust and Office Trust
GDI No. 38 Diversified Property Trust GDI No. 40 Office Trust Key statistics Key statistics For personal use only Established June 2014 Established June 2015 AUM $42.475 million AUM $38.75 million Gearing 45% Gearing 35% GDI Property Group GDI Property Group - - ownership ownership FY16 distribution
Slide 47: GDI No. 42 Office Trust
GDI No. 42 Office Trust Key statistics For personal use only Established June 2016 AUM $88.5 million Gearing 35% GDI Property Group 43.68% ownership FY16 distributions • Income - • Capital - Total capital returned - Commentary Two asset fund established in June 2016 GDI Property Group ownership
Slide 48: For personal use only
Unsaved Document / 29/07/2013 / 16:23 For personal use only LINKING EQUITY TO PERFORMANCE 47