GARDA Property Group · ASX:GDF
GARDA Property — H1 FY2020 Earnings Presentation
32 slides from GARDA Property's earnings presentation, Feb 20, 2020
Slide 1: Half Year Results Presentation
For personal use only GARDA PROPERTY GROUP (ASX: GDF) Half Year Results Presentation 20 February 2020
Slide 2: Disclaimer
Disclaimer This presentation (Presentation) has been prepared on behalf of GARDA Property Group (Group or GARDA), comprising GARDA Holdings Limited (GHL) and its controlled entities and GARDA Capital Limited (ACN 095 039 For personal use only 366) (AFSL 246714) (GCL) as responsible entity of the GAR
Slide 3: Snapshot
Snapshot GARDA Property Group (ASX: GDF or GARDA) is an internally managed real estate investment, For personal use only development and funds management group with a focus on industrial and commercial properties on the east coast of Australia. 6.1% 6.4% $405m 6.60% FY20 FFO Yield1 FY20 Distribution
Slide 4: Overview
For personal use only Overview GARDA Property Group Half Year Results 2020 4
Slide 5: Highlights
Highlights Key outcomes during H1 FY20 For personal use only $200 million debt restructure in progress Internalisation of Management - GARDA is well advanced in restructuring its existing debt facilities - GARDA internalised its management function in with St. George Bank (current limit $131.6 milli
Slide 6: Financial Performance
Financial Performance The following table provides a reconciliation For personal use only of statutory profit and FFO: 31 December 31 December 2019 2018 $000 $000 $000 FFO 7,697 6,451 Fair value movement in investment properties: Increase in independent valuations 3,310 - Acquisition costs (4,560) -
Slide 7: Peer Analysis
Peer Analysis GARDA Property Group For personal use only = FY20 earnings yield FY20 dividend yield = Average: 5.9% Average: 5.5% 6.2% 6.4% 6.3% 5.8% 5.8% 5.9% 6.0% 6.1% 5.5% 5.7% 5.7% 5.7% 5.3% 5.3% 5.0% 5.0% CIP GDI AOF GOZ COF GDF IAP AD I CIP GDI AOF GOZ COF AD I IAP GDF Premium/(Discount) to NTA
Slide 8: Capital Management
Capital Management Debt and equity For personal use only − GARDA completed a $31.5 million placement at $1.40 per Key Debt Metrics - Senior Bank Loans Current Debt Post-Restructure unit in September 2019 to partially fund the acquisitions of a Total debt facilities $180.7 million $200 million $41.0m
Slide 9: Acquisitions Summary
Acquisitions Summary Of Major Tenants Wallace NLA (m2 ) Gross Income Rent Review Lease Expiry 5,504 $0.7m 3.50% 31 July 2028 326 & 340 Thynne Road, Morningside International For personal use only Komatsu 11,475 $1.7m 3.25% 14 July 2023 Total 16,979 $2.4m − Acquired for $41.0 million on 30 September
Slide 10: Leasing
Leasing 7.9 Active period with significant leasing For personal use only occurring in both established portfolio Years and projects. Box Hill WALE − Planet Innovation, who has been a tenant for six years at the Box Hill office asset, has committed to a new seven year lease for the entire building (5
Slide 11: At Risk Income
At Risk Income Management of year on year lease Lease expiry profile1,2 For personal use only expiry remains positive with strong tenant retention rates. Established portfolio vacancy at 3% includes 802m² at Gold Coast and 1,158m² at Cairns. Botanicca 9 (7,109m²) represents 14% current vacancy. When
Slide 12: Property Portfolio
For personal use only Property Portfolio GARDA Property Group Half Year Results 2020 12
Slide 13: Transformation of GARDA
Transformation of GARDA GARDA has grown to approximately $405m in assets up from $140m over the past five years. For personal use only 01 August 2016 02 03 04 05 06 07 08 June 2017 July 2017 April 2018 June 2019 June 2019 July 2019 September 2019 Acquired Sold Acquired Pinkenba Acquired Heathwood Co
Slide 14: AUM Growth
− GARDA has grown its property portfolio by 189% from $140 AUM Growth million in 2015. Portfolio Value For personal use only − Increase in FY20 YTD AUM has been delivered through the Portoflio Value ($ millions) $41.0 million acquisition of $405m $434m Morningside industrial assets. $363m $284m − Up
Slide 15: Portfolio Improvement
Portfolio Improvement Quality, Resilience, Diversification. For personal use only WALE (years) 5.8 5.3 5.6 Quality – The portfolio quality, as measured by the continued 5.6 compression of the weighted average capitalisation rate is 4.1 reflective of both the positive asset outcomes in the establishe
Slide 16: Property Portfolio
Property Portfolio Integrated, commercial and industrial property platform For personal use only GARDA Property Group Half Year Results 2020 16
Slide 17: Property Portfolio
Property Portfolio GARDA Property Group For personal use only Classification Property Portfolio Type Independent Valuation ($m) Cap Rate (%) NLA (m2) WALE Occupancy NABERS Acacia Ridge, 38 Peterkin Street Industrial 6.00 7.50% 4,465 0.7 100% N/A Archerfield, 839 Beaudesert Rd Industrial 6.00 7.50% 4
Slide 18: Top tenants
Property Portfolio Top 10 tenants For personal use only % of Portfolio Tenant Property Industry Expiry Gross Income Planet Innovation1 Box Hill Science & Tech 10.3%2 Nov-27 J Blackwoods & Sons Mackay Industrials 9.9% Jan-29 Volvo Group Wacol Auto 9.6% Jul-28 Qld Gov (DTMR) Cairns Government 7.8% Nov
Slide 19: Development Projects
For personal use only Development Projects GARDA Property Group Half Year Results 2020 19
Slide 20: Project Pipeline
Project Pipeline Brisbane Industrial For personal use only − GARDA continues to execute its build to own strategy. New projects are retained as long term investment assets once developed. − All acquisitions during FY19 and FY20 increased the project pipeline in the Brisbane industrial market. − Proj
Slide 21: Berrinba Industrial Development
Project Pipeline Berrinba Industrial Development For personal use only − GARDA acquired an 11,940m² industrial site in November 2018 for $3.0 million. − 1-9 Huntress St, Berrinba is located within the established industrial estate ‘SouthWest 1 Enterprise Park’, approximately 23 kilometres south of t
Slide 22: Wacol Industrial Development
Project Pipeline Wacol Industrial Development For personal use only − GARDA acquired a 4.1 hectare site for $5.9 million in May 2019. − The site is located on Progress Road, Wacol, a major dual lane arterial road that has just received an upgrade and widening and connects with three of the major fre
Slide 23: Acacia Ridge Industrial Development
Project Pipeline Acacia Ridge Industrial Development For personal use only − The three Acacia Ridge assets are co-located transport orientated warehouse properties bordering the Acacia Ridge Intermodal Rail Terminal. − The three assets provide 61,400m² of land, allowing for approximately 27,000m² of
Slide 24: Melbourne City-Fringe Net Absorption
Leasing Melbourne City-Fringe Commercial / Botanicca 9 For personal use only Annual Net Absorption (m²) Annual Net Absorption (m²) 10 year average = 100,000m² per annum 208,811 181,584 172,748 162,867 86,881 30,198 2014 2015 2016 2017 2018 2019 Source – JLL market data GARDA Property Group Half Year
Slide 25: Future Supply & Pre-Commitment
Leasing Melbourne City-Fringe Commercial / Botanicca 9 For personal use only Future Supply & Pre-Commitment Pre Available 20,000m² 15,000m² 10,000m² 5,000m² - Botanicca 9 Botanicca 3 600 Church 54 Wellington 101 Moray 17 Harcourt 68 Clarke 57 Balmain (GARDA) (GARDA) (Growthpoint) Street Street Stree
Slide 26: Guidance
For personal use only Guidance GARDA Property Group Half Year Results 2020 26
Slide 27: FY2020 Guidance
FY2020 Guidance Operational Focus For personal use only − Advance immediate construction project pipeline of: − Berrinba; − Wacol (Building C); and − Acacia Ridge (stage 1), delivering an increase in assets of approximately $29 million. − Botanicca 9 leasing which is expected to deliver approximatel
Slide 28: Financial Information
For personal use only Financial Information GARDA Property Group Half Year Results 2020 28
Slide 29: Balance Sheet
Balance Sheet − A – Cash includes $5.0 million acquired as part of the internalisation of GCM and $2.0 million in rental guarantees 31 December 2019 30 June 2019 associated with the Acacia Ridge property acquisitions. For personal use only $000 $000 Assets − A – The prior comparative period included
Slide 30: Income Statement
Income Statement For personal use only 31 December 2019 31 December 2018 $000's $000's − A – Both property revenue and expenses increased as a result of the acquisitions of Property revenue A 13,938 12,353 the Acacia Ridge and Archerfield industrial portfolio in July 2019 and the acquisitions Other
Slide 31: Funds from Operations
Funds from Operations The following table provides a reconciliation For personal use only of statutory profit and FFO: 31 December 31 December 2019 2018 $000 $000 $000 FFO 7,697 6,451 Fair value movement in investment properties: Increase in independent valuations 3,310 - Acquisition costs (4,560) -
Slide 32: For personal use only
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