Goodman Group · ASX:GMG
Goodman — Goodman Property Trust — FY2022 Earnings Presentation
36 slides from Goodman's earnings presentation, May 19, 2022
Slide 1: Essential Infrastructure
ESSENTIAL GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 INFRASTRUCTURE
Slide 2: Contents
GOODMAN GOODMAN PROPERTY PROPERTYTRUST TRUST| |ANNUAL ANNUALRESULT RESULT2022 2022 CONTENTS 03 06 08 13 OVERVIEW SUSTAINABILITY FINANCIAL RESULT CAPITAL MANAGEMENT 17 24 28 INVESTMENT DEVELOPMENT SUMMARY PORTFOLIO PROGRAMME & OUTLOOK PRESENTED BY: JOHN DAKIN Chief Executive Officer ANDY EAKIN Chief
Slide 3: Overview
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 OVERVIEW 3 Dicker Data, M20 Business Park
Slide 4: Adapting and Thriving in the New Normal
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 ADAPTING AND THRIVING IN THE NEW NORMAL A rapidly growing digital economy is one of the key structural trends driving customer demand for urban logistics space + E-commerce has become an important demand driver for well-located distribution facilities in l
Slide 5: Portfolio, Capital Management, FY22 Result
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 PORTFOLIO + Portfolio occupancy of 99.4%, WALE of 6.3 years, following 268,042 sqm of stabilised leasing during the period + Underlying like for like NPI growth of 5.1% for the year + $660.4 million revaluation contributing to an ungeared property portfoli
Slide 6: Sustainability
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 SUSTAINABILITY 6 M20 Business Park – including one of the two DC fast chargers installed within the portfolio in 2022
Slide 7: Sustainability Highlights
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 SUSTAINABILITY HIGHLIGHTS + Toitū carbonzero certified operations for FY22; 50% lower emissions than FY20 base + Improved CDP climate score of B + Sustainable Finance Framework established; inaugural issue of $150 million of green bonds PORTFOLIO 2025 TARG
Slide 8: Financial Result
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 FINANCIAL RESULT 8 Mainfreight, Savill Link
Slide 9: Financial Highlights
GOODMAN GOODMAN PROPERTY PROPERTYTRUST TRUST| |ANNUAL ANNUALRESULT RESULT2022 2022 FINANCIAL HIGHLIGHTS Highbrook Business Park PROFIT BEFORE TAX OPERATING EARNINGS BEFORE TAX1 NET TANGIBLE ASSET BACKING LOAN TO VALUE RATIO2 $763.8m $118.3m 260.6 cpu 21.3% TOTAL RETURN3 FY22 DISTRIBUTION CASH EARNIN
Slide 10: Net Property Income
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 NET PROPERTY INCOME NET PROPERTY INCOME BRIDGE + Income from acquisitions and $m developments, in addition to like- for-like rental growth, has offset the impact of value-add assets 162.0 being taken off-line for redevelopment + Underlying like-for-like re
Slide 11: Cash Earnings
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 CASH EARNINGS CASH EARNINGS CALCULATION $m + FY22 cash earnings of 6.66 cents per unit, a 6.1% increase FY22 FY21 % change on FY212,3 Operating earnings before tax1 118.3 114.9 3.0% + Distributions of 5.50 cents per unit for the period represent 82.6% of c
Slide 12: Capital Growth
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 CAPITAL GROWTH NET TANGIBLE ASSETS + NTA increased 48.1 cents per unit or 22.6% cents per unit for the year to 260.6 cents per unit 280 + 16.1% increase in portfolio value main contributor +0.9 260 +1.9 + $27.0 million revaluation gain from 260.6 developme
Slide 13: Capital Management
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 CAPITAL MANAGEMENT 13 Gateway warehouses, Highbrook Business Park
Slide 14: Gearing
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 GEARING LOAN TO VALUE RATIO + Gearing within preferred range of 20-30% % and significantly below covenant maximum of 50% Covenant maximum 50% + LVR of 21.3% at 31 March 2022 with fully committed LVR of 25.8%1,2 40% + Committed developments complete over pe
Slide 15: Managing Funding Risk
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 MANAGING FUNDING RISK MATURITY PROFILE1 + Liquidity and diversity of funding extended through capital $m management initiatives: − $200 million, six-year wholesale bond issuance, 3.656% fixed − extension of total bank facilities from $400 million to $670 m
Slide 16: Managing Interest Rate Risk
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 MANAGING INTEREST RATE RISK HEDGING PROFILE + High level of hedging provides protection in a rising % interest rate environment 100% + Weighted average debt cost reduced to 3.2%, FY23 expected to be 3.8% 90% 80% 70% 60% 50% 40% BORROWING METRICS 30% 31-Mar
Slide 17: Investment Portfolio
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 INVESTMENT PORTFOLIO 17 NZ Post, Highbrook Business Park
Slide 18: New Acquisition: Sleepyhead, Ōtāhuhu
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 NEW ACQUISITION Acquisition of Sleepyhead, Ōtāhuhu further enhances GMT’s redevelopment pipeline, providing another strong last mile option for our customers. PURCHASE PRICE $49.35m LAND AREA 4.0 ha 18 Acquisition unconditionally contracted post FY22 balan
Slide 19: Property Portfolio
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 PROPERTY PORTFOLIO Portfolio footprint further enhanced through $300 million of infill investments1 ■ EXISTING ESTATES ■ ACQUIRED PROPERTY PORTFOLIO NET LETTABLE AREA2 OCCUPANCY WALE3 $4.8bn 1.1m sqm 99.4% 6.3 years 19 1 Includes post balance date acquisit
Slide 20: Stabilised Portfolio Leasing
GOODMAN GOODMAN PROPERTY PROPERTYTRUST TRUST| |ANNUAL ANNUALRESULT RESULT2022 2022 STABILISED PORTFOLIO LEASING Highbrook Business Park LEASED IN FY22 AVERAGE LEASE UP PERIOD PASSING RENTAL GROWTH RETENTION1 268,042 sqm 2.5 months 11.4% 77% CORE PORTFOLIO AVERAGE WAREHOUSE RATE2 AVERAGE NEW LEASE TE
Slide 21: Property Returns
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 PROPERTY RETURNS + $660.4 million revaluation contributing 16.1% to PROPERTY RETURNS an ungeared property portfolio return of 20.1%1 + ~90% of GMT’s second half revaluation driven 16.1% 4.0% 20.1% by leasing and market related factors excluding cap rate co
Slide 22: Rental Profile
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 RENTAL PROFILE + Underlying like-for-like rental growth of 5.1%1 FY23 PORTFOLIO REVIEW PROFILE % of portfolio income + Core portfolio assessed to be ~10% under-rented ($17.9 million)2 100% + Average rental increase of 10.7% on new leases and renewals Curre
Slide 23: Customer Base
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 CUSTOMER BASE + 226 customers across 169 buildings, with 75% focused TOP 10 CUSTOMERS1 on warehousing or distribution % of portfolio, including subsidiary companies % of income + Top 10 customers accounting for 36% of portfolio income New Zealand Post Limi
Slide 24: Development Programme
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 DEVELOPMENT PROGRAMME 24 Roma Road
Slide 25: Work in Progress
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 WORK IN PROGRESS TOTAL PROJECT COST NET LETTABLE AREA $426.0m 99,741 sqm WALE YIELD ON COST 15.9 years 5.0% BROWNFIELD PROPORTION WITH REDEVELOPMENT PROJECTS EXISTING CUSTOMERS 72% 86% Dicker Data, M20 Business Park 25
Slide 26: Current Development Programme
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 CURRENT DEVELOPMENT PROGRAMME + Completed three developments in FY22 WORK IN PROGRESS SUMMARY across 9,773 sqm of NLA Lettable area Expected Estate Leased (sqm) completion date + Current development programme consists of 99,741 sqm with a total project cos
Slide 27: Construction Environment
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 CONSTRUCTION ENVIRONMENT + Construction pricing remains elevated due to pressures on labour, materials and timing + Our expectations are for a continuation of this environment, at least for the balance of this calendar year + With a substantial volume of w
Slide 28: Summary & Outlook
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 SUMMARY & OUTLOOK 28 M20 Business Park
Slide 29: Future Pathway
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 FUTURE PATHWAY Macro environment + The business environment is changing, with increased interest rates, inflation, geopolitical risks and the ongoing impacts of the pandemic, however, the long-term structural drivers of demand have not changed + Demographi
Slide 30: Questions
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 QUESTIONS 30 Highbrook Business Park
Slide 31: Thank You / Disclaimer
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 THANK YOU DISCLAIMER The information and opinions in this presentation were prepared by Goodman (NZ) Limited on behalf of Goodman Property Trust or one of its subsidiaries (GMT). GMT makes no representation or warranty as to the accuracy or completeness of
Slide 32: Appendix
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 APPENDIX 32 Highbrook Business Park
Slide 33: Work in Progress
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 WORK IN PROGRESS WORK IN PROGRESS Lettable area Development Estate Completion date Leased sqm NZ Blood Highbrook Business Park 3,290 Sep-22 100% Riverside Warehouses Highbrook Business Park 8,100 Nov-22 100% Stanley Black & Decker Highbrook Business Park 9
Slide 34: Profit or Loss
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 PROFIT OR LOSS 34
Slide 35: Balance Sheet
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 BALANCE SHEET 35
Slide 36: Cash Flows
GOODMAN PROPERTY TRUST | ANNUAL RESULT 2022 CASH FLOWS 36
Goodman Property Trust — FY2022 Earnings Presentation on 6ix