Gdi Property Group · ASX:GDI
Gdi Property — Bell Potter Foundations Real Estate Conference 2023
23 slides from Gdi Property's conference presentation, Nov 22, 2023
Slide 1: Bell Potter Conference Presentation
ASX ANNOUNCEMENT 22 November 2023 BELL POTTER CONFERENCE PRESENTATION GDI1 is pleased to issue the attached presentation which is to be delivered to the Bell Potter Foundations Real Estate Conference today. Media Enquiries: Stephen Burns David Williams Managing Director Chief Financial Officer For p
Slide 2: Presenters: Stephen Burns and David Williams
Mr Stephen Burns For personal use only Managing Director & CEO Mr David Williams CFO & Joint Company Secretary
Slide 3: Disclaimer
Disclaimer This presentation has been prepared and issued by GDI Property Group security holder or potential investor may require in order to determine Limited (ACN 166 479 189) and GDI Funds Management Limited (ABN 34 107 whether to deal in GDI Property Group securities. Whilst every effort is made
Slide 4: Introduction to GDI
Introduction to GDI Office building total return specialist Value driven approach to entering markets with agility and flexibility For personal use only Perth exposure Syndication funds business Co-living joint venture Carparks Active management – 14 people with specialist capabilities
Slide 5: Property portfolio
Property portfolio For personal use only Independent valuation Cap rate 30/6/23 30/6/22 30/6/23 Fair value % $m $m $m2 Date Key statistics 30/6/23 Details $m Occupancy 82.5% 141 St Georges Terrace, Perth (WS1) 30/6/23 371.0 6.25 371.0 376.9 10,382 WALE 5.2 years 143 St Georges Terrace, Perth (WS2) 3
Slide 6: Business model
Business model THE GDI VALUE PROPOSITION Core business Our objectives Result STRATEGY TO CREATE VALUE Ensure the GDI skills and capability DRIVEN BY INVESTMENT matches our ability to execute on our • Entering and exiting markets and ACHIEVE OPTIMAL SHORT TERM AND strategy. GDI must have an elite tea
Slide 7: Subsequent to results in August
Subsequent to results in August Leasing momentum continues in Perth Obtained a DA for a re-use and timber building on the Wellington Street carpark site WS2 tracking well For personal use only Co-living JV performing well at the operating level and we continue to monitor opportunities for gr
Slide 8: Focus on executing strategy
Focus on executing strategy Relentlessly focused on leasing efforts in Perth Recycling efforts are underway Senior management very focused on executing strategy with aligned goals For personal use only and remuneration Distribution to be maintained at 5 cents for FY24 (December DRP will be s
Slide 9: Leasing momentum continues
Leasing momentum continues At August (FY23 results) we announced c. 30,000m2 of leases, renewals and Heads of Agreement (HOA’s) – included c. 7,800m2 of HOA’s Since August we have: ˃ Converted c. 2,800m2 of the HOA’s to signed leases and very confident of converting the balance of c. 5,000m2 For
Slide 10: Leasing momentum continues
Leasing momentum continues 197 St Georges Terrace 5 Mill Street 1 Adelaide Terrace (Syndicate #36) For personal use only Our part floor fitout strategy is proving Leases up very well and suits smaller space Top two floors vacant successful user Very focussed on over 11,000m2 of space for M
Slide 11: Leasing momentum continues: key trends
Leasing momentum continues Key trends Fitted out part floors leasing well For personal use only (faster / better terms) Notwithstanding, whole floor deals are being negotiated in WS1, WS2 and 197 St Georges Terrace Tenants are seeking expansion space Greater pressure on incentives to reduce, than in
Slide 12: Strategy to attract tenants with discipline is key
Strategy to attract tenants with discipline is key Lower incentives for part floors Optimising lease term Capex aimed at income producing opportunities For personal use only Achieving strong rental outcomes in our core buildings because: We are prepared to adapt and move quickly Multiple t
Slide 13: Development ready, incorporating key office market trends
Development ready, incorporating key office market trends 1 Mill Street Wellington Street For personal use only Key trends GDI response ESG is here to stay Embodied carbon Timber and re-use Boutique rather than tower Work from / office utilisation Amenity to attract tenants Amenable fitout / par
Slide 14: Powered "only" by resources
WA: Common perceptions Powered “only” by resources WA Gross State Product (GSP) by industry For personal use only Source: JLL Research, ABS 13
Slide 15: Powered "only" by resources
WA: Common perceptions Powered “only” by resources But.. With diversification within the resources sector For personal use only Source: JLL Research, DMIRS, ga.gov.au, wgeh.com.au, talisonlithium.com 14
Slide 16: Migrants prefer the East Coast
WA: Common perceptions Migrants prefer the East Coast Migration – strongest in WA For personal use only Source: JLL Research, ABS 15
Slide 17: Migrants prefer the East Coast
WA: Common perceptions Migrants prefer the East Coast Australia is expected to be more resilient For personal use only Source: Oxford Economics, JLL Research 16
Slide 18: Migrants prefer the East Coast
WA: Common perceptions Migrants prefer the East Coast India will become a more relevant economy for us For personal use only Source: JLL Research, Department of Education, Skills and Employment, ABS 17
Slide 19: A high vacancy market
WA: Common perceptions A high vacancy market Sydney Downsizers Melbourne Downsizers For personal use only Perth Downsizers Brisbane Downsizers Large tenant moves > 1,000 sqm Source: JLL Research 18
Slide 20: A high vacancy market
WA: Common perceptions A high vacancy market Mixed conditions across Australia’s office markets For personal use only Source: JLL Research 19
Slide 21: A high vacancy market
WA: Common perceptions A high vacancy market WA is well positioned for long-term growth Major cities office employment, 2022 to 2032 For personal use only Source: Oxford Economics, JLL Research 20
Slide 22: Australian Equities vs Perth Office Property Returns
WA: Common perceptions Australian Equities vs Perth Office Property Returns ASX Total Returns vs Perth CBD Office Prime Grade Total Returns For personal use only Source: JLL Research. Market Index 21
Slide 23: For personal use only
For personal use only
GDI Property Group — Bell Potter Foundations Real Estate Conference 2023 on 6ix