Gpt Group · ASX:GPT
Gpt — The GPT Group — FY2023 Earnings Presentation
37 slides from Gpt's earnings presentation, Feb 19, 2024
Slide 1: 2023 Annual Result Presentation
ASX Announcement 19 February 2024 2023 Annual Result Presentation The GPT Group (‘GPT’) provides its 2023 Annual Result Presentation. -ENDS- For personal use only Authorised for release by The GPT Group Board. For more information, please contact: Investors Media Penny Berger Grant Taylor Head of In
Slide 2: 2023 Annual Result Market Briefing
Experience First For personal use only 2023 Annual Result GPT – 2023 ANNUAL RESULT PRESENTATION Market Briefing 1
Slide 3: Agenda
Agenda For personal use only 2023 Annual Result - Bob Johnston 4 Results and Capital management – Dean McGuire 7 Retail - Chris Barnett 12 Office - Martin Ritchie 19 Logistics - Chris Davis 26 Outlook and 2024 Guidance - Bob Johnston 33 GPT – 2023 ANNUAL RESULT PRESENTATION 2
Slide 4: Acknowledgement of Traditional Custodians
GPT acknowledges the Artwork: ‘Saltwater Spirit’ by Lowell Hunter (proud Traditional Custodians of the Nyul Nyul Saltwater man) lands on which our business and Bobbi Lockyer (proud Ngarluma, Kariyarra, Nyul operates. Nyul and Yawuru woman). We pay our respects to Elders past, present and emerging, a
Slide 5: 2023 Annual Result: Financial summary and investment portfolio
2023 Annual Result Financial summary Investment portfolio For personal use only 31.37c Funds From Operations per security, down 3.2% 25.0c Distribution per security, unchanged 98.2% Portfolio Occupancy (Incl. HoA) 4.5yrs Weighted average lease expiry $5.61 Net Tangible Assets per $32.6b Assets under
Slide 6: Overview of operations
Overview of operations • Strong leasing results achieved in Retail portfolio $32.6b AUM − Occupancy 99.8%, with high sales productivity and sustainable occupancy cost − Melbourne Central occupancy 100% and Moving Annual Turnover (MAT) up 17.1% on 2022 GPT Portfolio2 For personal use only • Office po
Slide 7: Portfolio valuation metrics
Portfolio valuation metrics Investment property valuation decline of $819.0m1 or 5.1% Retail Office Logistics For personal use only 2023 Valuation movement 12 months to 31 December 2023 -$178.7m -$555.8m -$84.7m -3.1% -9.2% -1.9% Capitalisation Rate Movement since 31 December 2022 5.43% 5.49% 5.26%
Slide 8: Results and Capital management
Experience First For personal use only Results and Capital GPT – 2023 ANNUAL RESULT PRESENTATION management 7
Slide 9: Financial result
Financial result ($m) Dec 2023 Dec 2022 Change For personal use only Net (loss)/profit after tax (240.0) 469.3 Valuation decrease 819.0 159.3 Treasury instruments marked 21.9 (8.0) to market and other items Funds from operations (FFO) 600.9 620.6 (3.2%) FFO per security (cents) 31.37 32.40 (3.2%) Ad
Slide 10: Segment result
Segment result ($m) 2023 2022 Change Comments Rent reviews, higher turnover rent and occupancy partially offset by divestments Retail 317.5 289.8 9.6% (+$32.2m), and lower GWSCF FFO (-$4.5m) primarily due to interest costs For personal use only Lower average occupancy partially offset by rent review
Slide 11: Interest rate hedge profile
Interest rate hedge profile 2024-2026 71% Hedge Profile For personal use only 100% 96% 10.0% 90% 9.0% hedged over the next 3 years 80% at an average fixed base rate of 3.5% 8.0% 70% 65% 7.0% 60% 51% 6.0% 5.2% 50% 5.0% 40% 4.0% 30% 3.6% 3.7% 3.0% 20% 3.2% 10% 2.0% Full year 2024 forecast all-in-cost
Slide 12: Capital management
Capital management Key Statistics Dec 2023 Dec 2022 Comments Net Tangible Assets per security $5.61 $5.98 Driven by a valuation decrease of $819m For personal use only Within stated range of 25%-35% and material headroom to 50% Net gearing 28.3% 28.5% covenant Liquidity $1.5b $1.1b Funds capital com
Slide 13: Retail
Experience First For personal use only GPT – 2023 ANNUAL RESULT PRESENTATION Retail 12
Slide 14: Retail overview
Retail overview For personal use only $340.9m Segment contribution, up 12.3% 12.5% Comparable income growth 99.8% Portfolio occupancy 5.43% Weighted average capitalisation 7.4% Total Centre sales growth $12.8b Assets under management rate, up 40 bps GPT – 2023 ANNUAL RESULT PRESENTATION 13
Slide 15: Excellent leasing outcomes achieved
Excellent leasing outcomes achieved • High tenant demand for quality retail space For personal use only • Positive leasing spreads across renewals and new leases • Average lease terms of 5.2 years all with fixed base rents and annual increases • Specialty occupancy costs of 16.1% (78 bps below long-
Slide 16: Centre sales performance
Centre sales performance • Total Centre MAT up 7.4% on 2022 • Total Centre sales in the December 2023 quarter up 3.3% on prior year • Black Friday sales event continues to grow in customer popularity and For personal use only bolstered sales in November, delivering a 5.6% uplift compared to the prio
Slide 17: Melbourne Central achieves record MAT
Melbourne Central achieves record MAT Melbourne Central 2013 – 2023 Total Specialty Productivity (psm) $15,988 For personal use only $14,431 $14,269 $14,002 $12,379 $11,512 $10,458 $9,403 $8,978 • Record Total Centre MAT of $612.3m (+17.1% growth on 2022) as customers return to Melbourne CBD • Marke
Slide 18: GPT Retail Platform
GPT Retail Platform GPT is a leading retail property and asset management platform in Australia 16 Assets owned 1.3m sqm $10.3b For personal use only GLA Total MAT and/or managed New South Wales 4,000+ 207m Charlestown Square Dapto Mall Macarthur Square Macquarie Centre Marrickville Metro Retail ten
Slide 19: Retail outlook
Retail outlook • We expect retail sales growth to remain positive over 2024 For personal use only • Retailers expected to maintain healthy levels of profitability and sustainable occupancy costs • The Group will continue leasing strategies to drive sales productivity and position our assets to attra
Slide 20: Office
Experience First For personal use only GPT – 2023 ANNUAL RESULT PRESENTATION Office 19
Slide 21: Office overview
Office overview For personal use only $323.4m Segment contribution, down 3.4% -0.8% Comparable income growth 92.3% Portfolio occupancy (incl. HoA) 5.49% Weighted average capitalisation 4.7yrs Weighted average lease expiry $13.9b Assets under management rate, up 46 bps GPT – 2023 ANNUAL RESULT PRESEN
Slide 22: Office leasing market remains challenging
Office leasing market remains challenging • Vacancy rates in Sydney and Melbourne are elevated, with subdued demand and high incentives • Brisbane prime market outperformed with solid demand, vacancy trending lower and strong rental growth • Customers continue to prefer prime, high-quality workplace
Slide 23: Strong leasing results
Strong leasing results 133,800 sqm 5.1 years 35% 506 For personal use only Leased across 167 deals (incl. HoA) Average lease term Average gross incentive Customers, up 13% GPT and GWOF NLA Leasing activity breakdown Key Leasing 2023 Customer Area (sqm) Term (years) Asset By NLA By number of deals Co
Slide 24: Leasing remains a core focus
Leasing remains a core focus • Portfolio occupancy increased to 92.3% (including HoA) at December 2023 • 11% of the portfolio expiring in 2024 of which 6% occurs in the first half For personal use only GPT Office vs Market Prime Grade Average Occupancy Lease expiry profile (incl. HoA)2 17% 14% 13% 9
Slide 25: Portfolio well positioned for leasing in 2024
Portfolio well positioned for leasing in 2024 Three distinctive office products with a focused leasing strategy 100% 100% For personal use only Prime portfolio Portfolio certified carbon neutral1 78% 5.1 stars GPT Space&Co Portfolio constructed or NABERS energy refurbished since 2012 portfolio ratin
Slide 26: Office outlook
Office outlook • Market vacancy is expected to remain elevated however prime assets with appealing amenity will continue to be in demand For personal use only • Leasing to stay competitive. GPT’s three distinctive office products designed to cater to all market segments • GPT’s high quality portfoli
Slide 27: Logistics
Experience First For personal use only GPT – 2023 ANNUAL RESULT PRESENTATION Logistics 26
Slide 28: Logistics overview
Logistics overview For personal use only $198.5m Segment contribution, up 5.5% 5.5% Comparable income growth 99.5% Portfolio occupancy (Incl. HoA) 5.26% Weighted average capitalisation 5.4yrs Weighted average lease expiry $4.7b Assets under management rate, up 86bps GPT – 2023 ANNUAL RESULT PRESENTA
Slide 29: Market conditions remain favourable
Market conditions remain favourable • 2023 gross take-up of 2.2 million sqm with Industrial & Logistics Market Sydney Melbourne Brisbane demand normalising to the 10-year average For personal use only (2.4 million sqm)2 Vacancy1 0.5% 1.6% 1.4% • Transport/Postal users are the dominant occupier group
Slide 30: Strong leasing outcomes achieved
Strong leasing outcomes achieved • Total leasing1 of 168,000sqm and leasing spreads of 39% • High occupancy1 maintained at 99.5% For personal use only • Portfolio under-rented compared to market, 32% by income expiring in next three years with >15% average leasing spreads expected Key Leasing 2023 C
Slide 31: Development completions
Development completions • Five projects of $259.3m AUM delivered, adding 111,200sqm of prime logistics stock • Half of the Logistics portfolio has been created via the development pipeline 1 providing customers with high quality product and delivering enhanced returns For personal use only 24A & 24B
Slide 32: Developing high quality sustainable product
Developing high quality Mamre Road Precinct, Kemps Creek, NSW sustainable product • Progressing ~$2b AUM pipeline1 (52% Sydney, 36% Melbourne, 12% Brisbane) • Onsite works at Yiribana East Logistics Estate, Kemps Creek to commence For personal use only this quarter – DA achieved for two of six facil
Slide 33: Logistics outlook
Logistics outlook • Market vacancy expected to remain low through 2024, supporting rent growth For personal use only • Market supply expected to increase, however timing dependent on authority approvals, with delays particularly acute in Sydney • Executing leasing strategies to maximise income upsid
Slide 34: Outlook and 2024 Guidance
Experience First For personal use only Outlook and GPT – 2023 ANNUAL RESULT PRESENTATION 2024 Guidance 33
Slide 35: Outlook and 2024 Guidance
Outlook and 2024 Guidance Outlook • Operating environment remains uncertain, however interest rates appear For personal use only close to peak and inflation is trending lower. Transaction market remains subdued but is expected to improve as bond yields stabilise • Retail sales growth moderated in 2H
Slide 36: Thank you for joining us
Experience First For personal use only Thank you for joining us Questions GPT – 2023 ANNUAL RESULT PRESENTATION 35
Slide 37: Disclaimer
Disclaimer For personal use only This Presentation (Presentation) has been prepared by The GPT Group comprising GPT RE To the maximum extent permitted by law, The GPT Group, its related companies, officers, Limited (ACN 107 426 504; AFSL 286511), as responsible entity of the General Property Trust,