Slide 1: Goodman Group FY22 Results
GOODMAN GROUP FY22 RESULTS Operating profit $1.5 billion, statutory profit $3.4 billion and 24% EPS growth Artist’s impression, multi storey development, South Sydney, Australia 16 August 2022
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER – This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 – This document contains certain “forward-looking statements”. The words “anticipate”, “believe”, 071), Goodman Funds Management Limited (ABN 48067 796 641; AFSL Number 223621) as the
Slide 3: Contents
CONTENTS Section 01 Highlights Section 02 Results overview Section 03 Operational Section 04 Outlook performance Appendices 1. Results analysis 2. Property investment 3. Development 4. Management 5. Capital management 3 GOODMAN GROUP 1H FY22 RESULTS
Slide 4: Highlights
Goodman Business Park, Stage 5, Greater Tokyo, Japan 01 HIGHLIGHTS 4 GOODMAN GROUP 1H FY22 RESULTS
Slide 5: Highlights
HIGHLIGHTS Goodman is responding to strong demand for industrial space across our portfolio, delivering opportunities for our customers and investors. $1.5bn $3.4bn OPERATING PROFIT STATUTORY PROFIT + The Group has delivered a strong FY22 result. The + Our customers need for more productivity and su
Slide 6: Highlights
HIGHLIGHTS + Significant progress on ESG targets and outcomes: + Available liquidity of over $2.8 billion for the Group in – Goodman’s global operations are maintaining certification under the Climate Active program for being a Carbon Neutral addition to equity commitments3, cash and undrawn debt of
Slide 7: Group and Partnership Highlights
GROUP AND PARTNERSHIP HIGHLIGHTS 98.7% 3.9% 4.5m 8.5% OCCUPANCY NPI GROWTH SQUARE METRES LEASED GROUP GEARING OWN High occupancy maintained at Like for like NPI growth of 3.9% ¹ Across the global portfolio equating With look through gearing of 19.6% 98.7%¹ and WALE of 5.2 years¹ to $552 million of a
Slide 8: Results Overview
Port Melbourne Industrial Estate, Melbourne, Australia 02 RESULTS OVERVIEW 8 GOODMAN GROUP 1H FY22 RESULTS
Slide 9: Results Overview
RESULTS OVERVIEW + Statutory accounting profit of $3,414.0 million FY21 FY22 – Includes significant property valuation gains, derivative and foreign currency mark-to-market Operating profit ($M) 1,219.4 1,528.0 movements and other non-cash, non-recurring items Statutory accounting profit ($M) 2,311.
Slide 10: Profit and Loss
PROFIT AND LOSS + Full year statutory accounting profit of $3,414.0 million includes property valuations, Income statement derivative mark-to-markets, share based payments and other non-cash or non- FY21 FY22 recurring items $M $M – Revaluation gains for FY22 across the Group and Partnerships were $
Slide 11: Balance Sheet
BALANCE SHEET + Group balance sheet remains well positioned Balance sheet – Gearing 8.5% (6.8% in FY21) and 19.6% on a look-through basis. 4 5 AS AT AS AT + Stabilised investment properties grew mainly through revaluations and 30 JUNE 2021 30 JUNE 2022 completed development inventory $M $M + Growth
Slide 12: Group Liquidity Position
GROUP LIQUIDITY POSITION + Cash and available lines of credit (excluding Partnership debt and equity) of $2.8 billion as at 30 June 2022 – $1.1 billion in cash, $1.7 billion of available lines – Weighted average debt maturity profile of 6.2 years + Gearing at 8.5%¹ (19.6%² look-through). Consistent
Slide 13: Operational Performance
Roma Road Development, Auckland, New Zealand 03 OPERATIONAL PERFORMANCE 13 GOODMAN GROUP 1H FY22 RESULTS
Slide 14: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE + During FY22, Goodman continued its concerted efforts to make ESG fundamental to our business and core operations + Our 2030 Sustainability Strategy provides a blueprint and is a fundamental contributor to our strong performance and long-term strategy. PROPERTY
Slide 15: Property Investment
PROPERTY INVESTMENT + Available space remains restricted in our markets. Consequently, underlying Property investments property fundamentals remain strong, supporting high occupancy, rent growth and cash flows FY21 FY22 – Occupancy of 98.7%2 Direct ($M) 79.3 103.7 – WALE has increased to 5.2 years2
Slide 16: Development
DEVELOPMENT + Strong demand is driven by customers seeking greater productivity and sustainable Developments solutions to improve their supply chain – Growth in WIP to $13.6 billion FY21 FY22 – Increased scale and higher value projects have seen the average development period for Development earning
Slide 17: Management
MANAGEMENT + External AUM of $68.7 billion, up 27% on FY21 Management – AUM increase supported by strong revaluation gains, development completions and acquisitions FY21 FY22 + Strong performance of the Partnerships and AUM growth increasing management earnings to $588.4 million, up 28% on FY21 Mana
Slide 18: Management Platform
MANAGEMENT PLATFORM GAIP GHKLP GNAP GEP GCLP GAP GMT3 GJCP GUKP4 AUSTRALIA HONG KONG USA EUROPE CHINA AUSTRALIA NEW ZEALAND JAPAN UK Total assets ($B) 13.8 10.9 8.4 7.0 6.9 6.6 4.4 4.1 2.5 GMG co-investment (%) 28.6 20.3 55.0 19.8 20.0 19.9 24.9 14.4 35.3 GMG co-investment ($B) 3.0 1.7 3.8 0.9 0.9 1
Slide 19: Outlook
04 OUTLOOK 19 GOODMAN GROUP 1H FY22 RESULTS
Slide 20: Outlook
OUTLOOK Bungarribee Industrial Estate, Sydney, Australia + Goodman is positioned well to continue to adapt to + The Partnerships are positioned well following strong Global markets remain volatile, but ongoing market volatility and geopolitical tensions. We returns and investor support in FY22. We b
Slide 21: Outlook
OUTLOOK + We remain focused on our development led growth + The Group continues to maintain a strong balance strategy, which is providing well located assets for the sheet, which combined with retained income, provides Group and our partners significant liquidity, stability and financial resources t
Slide 22: Appendix: Results Analysis
Goodman Huiyang Industral Park, Huiyang, China 01 APPENDIX RESULTS ANALYSIS 22 GOODMAN GROUP 1H FY22 RESULTS
Slide 23: Profit and Loss
PROFIT AND LOSS Property Non-operating Total investment Management Development Operating expenses items Category $M $M $M $M $M $M Gross property income 138.0 137.4 – – – 0.6 Management income 511.4 – 511.4 – – – Development income 1 1,441.6 – 77.0 1,364.6 – – Distributions from investments 0.8 0.8
Slide 24: Reconciliation Non-Operating Items
RECONCILIATION NON-OPERATING ITEMS Year ended 30 Total June 2022 Non-operating items in statutory income statement $M $M Property valuation related movements Net gain from fair value adjustments attributable to investment properties 260.1 Share of net gain from fair value adjustments attributable to
Slide 25: Financial Position
FINANCIAL POSITION Property Direct Assets investment Development Other Total As at 30 June 2022 $M $M $M $M $M Cash – – – 1,056.0 1,056.0 Receivables – – 211.1 257.1 468.8 Inventories 502.4 – 1,613.7 – 2,116.1 Investment properties 1,286.6 – 137.1 – 1,423.7 Investments accounted for using equity met
Slide 26: Business Performance Analysis
BUSINESS PERFORMANCE ANALYSIS + Operating margins have steadily increased + ROA has increased – Longer term benefits of focused strategy, capital management and funding now emerging in fee – Positive performance from investment property on a like-for-like basis revenue – More assets and developments
Slide 27: Net Tangible Asset Movement
NET TANGIBLE ASSET MOVEMENT 27 GOODMAN GROUP FY22 RESULTS
Slide 28: Property Valuations
PROPERTY VALUATIONS Bedford Corporate Park, Bedford, United Kingdom + Revaluation gains across the global portfolio for the full year totalled $8.5 billion, with the Group’s share $2.6¹ billion. + Whilst cap rates have generally stabilised post 1H22, the favourable occupational market and uplift dri
Slide 29: Appendix: Property Investment
Venlo III Logistics Centre, Venlo, The Netherlands 02 APPENDIX PROPERTY INVESTMENT 29 GOODMAN GROUP 1H FY22 RESULTS
Slide 30: Leasing
LEASING 4.5m 99% SPACE LEASED OCCUPANCY Across the Partnerships: + 4.5 million sqm leased over the 12 months, equating to $551.9 million of annual property income¹ + High occupancy at 99%¹. Average lease Leasing area Net annual rent term Region SQM $M YEARS Australia / New Zealand 1,552 193.2 4.6 As
Slide 31: Customers
CUSTOMERS Helmond Logistics Centre, Helmond, The Netherlands 31 GOODMAN GROUP FY22 RESULTS
Slide 32: Direct Portfolio Detail
DIRECT PORTFOLIO DETAIL Crossways Corporate Park, Greater London, United Kingdom + Long term strategic portfolio with potential for higher and better use, re-zoning and redevelopment + 31 properties with a total value of $2.4¹ billion located primarily in the Sydney market – Represents a significant
Slide 33: Appendix: Development
03 APPENDIX DEVELOPMENT 33 GOODMAN GROUP 1H FY22 RESULTS
Slide 34: Developments
DEVELOPMENTS FY22 developments As at 30 June 2022 Completions Commencements Work in progress Value ($B) 6.0 7.9 13.6 Area (m sqm) 1.6 2.1 3.8 Yield (%) 6.9 6.3 6.6 Committed (%) 99 59 62 Weighted average lease term (years) 12.2 15.4 14.2 Development for third parties or 83 81 85 Partnerships (%) Aus
Slide 35: Appendix: Management
04 APPENDIX MANAGEMENT 35 GOODMAN GROUP 1H FY22 RESULTS
Slide 36: Global Platform
GLOBAL PLATFORM 36 GOODMAN GROUP FY22 RESULTS
Slide 37: Management – AUM
MANAGEMENT – AUM + The majority of Goodman’s assets reside in Partnerships – The Group manages 16 Partnerships with 48 investors who are represented on the Boards and Investment Committees independent of Goodman – Goodman maintains a 28% average equity cornerstone position in the Partnerships to ens
Slide 38: Appendix: Capital
Goodman Business Park, Greater Tokyo, Japan 05 APPENDIX CAPITAL 38 GOODMAN GROUP 1H FY22 RESULTS
Slide 39: Currency Mix
CURRENCY MIX 39 GOODMAN GROUP FY22 RESULTS
Slide 40: Financial Risk Management
FINANCIAL RISK MANAGEMENT The Group has a robust capital management framework + The Group has a robust capital management framework, under its Financial Risk Management (FRM) policy. This provides: – Stronger balance sheet which has been reflected in our credit ratings from S&P and Moody’s BBB+ / Ba
Slide 41: Financial Risk Management (Cont)
FINANCIAL RISK MANAGEMENT (CONT) + Interest rates are hedged to 77% over the next 12 months – Weighted average hedge rate of 2.46%¹,2,3 – NZD – hedge rate 1.35% – JPY – hedge rate 1.06% – HKD – hedge rate 1.36% – GBP – hedge rate 1.76% – Euro – hedge rate 0.73%² – USD – hedge rate 4.08% + Weighted a
Slide 42: Financial Risk Management (Cont)
FINANCIAL RISK MANAGEMENT (CONT) Foreign currency denominated balance sheet hedging maturity profile Weighted average Weighted average Amount maturity exchange rate Amount receivable1 payable1 NZ$ 3.5 years 1.0775 A$696.4m NZ$750.0m HK$ 3.7 years 5.6976 A$1,466.9m HK$8,340.0m US$ 3.7 years 0.7221 A$
Slide 43: Exchange Rates
EXCHANGE RATES Moorabbin Airport, Melbourne, Australia Statement of financial position – exchange rates as at 30 June 2022 Currency Exchange rate AUDGBP – 0.5676 (30 June 2021: 0.5432) AUDEUR – 0.6594 (30 June 2021: 0.6327) AUDHKD – 5.4241 (30 June 2021: 5.8222) AUDBRL – 3.5905 (30 June 2021: 3.7528
Slide 44: Thank You
THANK YOU For more information visit goodman.com Important Notice This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839) a