Goodman Group · ASX:GMG
Goodman — Investor Day (June 2014)
40 slides from Goodman's investor day presentation, Jun 12, 2014
Slide 1: Goodman operational and earnings update
Goodman operational and earnings update Date 11 June 2014 Release Immediate Goodman Group (Goodman or Group) advises that it will host an Investor and Analyst Update tomorrow, 12 June, with the attached presentation forming an integral part of the briefing. It provides updates from each of the Group
Slide 2: About Goodman
About Goodman Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom, North America and Brazil. Goodman Group, comprised of the stapled entities Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited, is
Slide 3: Investor update
Goodman Group Investor update 12 June 2014 Global partner + Global platform
Slide 4: Important notice and disclaimer
Important notice and disclaimer + This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071), Goodman Funds Management Limited (ABN 48 067 796 641; AFSL Number 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839) and Goodman Logistics (HK) Lim
Slide 5: Contents
Contents + Section 1 Introduction and financial update + Section 2 Regional updates - Australia - North America - Brazil - United Kingdom - Continental Europe - Japan - Greater China - New Zealand + Section 3 Funds management + Section 4 Customer service model 3
Slide 6: Section 1: Quarterly operational highlights
Section 1+ Quarterly operational highlights Munich Airport Logistics Centre, Germany
Slide 7: Financial update
Financial update + Goodman Group has remained committed to: – The Own + Develop + Manage strategy of industrial real estate – Focusing on core markets with a prudent and disciplined approach to investing in markets and rollout of the development work book – Gearing around 20% providing appropriate r
Slide 8: Regional Updates
Section 3 + Regional Updates Interlink, Hong Met cash, Bungaribee Kong ,Australia
Slide 9: Australia
Australia+ Section 2+ Jason Little, Results General overview Manager Australia Stockyards Industrial Estate, Australia M7 Business Hub, Australia
Slide 10: Australia
Australia + Business confidence continues to impact decision making and business investment requirements + The Australian economy is transitioning away from mining with the consumer, housing and export sectors expected to drive economic growth back toward trend by 2015 + The industrial sector has be
Slide 11: Australia
Australia Acquisition Sydney Corporate Park Sydney Corporate Park, Alexandria Bungarribee Industrial Estate, Eastern Creek Bungarribee Industrial Estate, Eastern Creek, NSW Valuation A$343 million Estimated end value A$420 million Land area 144,000 sqm Land area 351,000 sqm Lettable area 116,732 sqm
Slide 12: North America
North America+ Brandon Birtcher, CEO North America Kroger Distribution Center, United States
Slide 13: North America
North America + Long term interest rates to remain low in order to sustain America’s recovery + Positive economic data indicates economic growth will accelerate in 2014 + US unemployment rate continued to decline to 6.3% at April 2014 + Key industrial demand drivers (industrial production, retail sa
Slide 14: North America
North America Acquisition Sydney Corporate Park Oakland Airport Distribution Center, Oakland Rancho Cucamonga, Bungarribee Inland Industrial Empire Estate, West Eastern Creek, NSW Valuation US$45 million Estimated end value US$150 million Land area 74.9 acres Land area 19 acres Lettable area 1,589,0
Slide 15: Brazil
Brazil+ Danny Peeters, CEO Brazil IBP, Rio de Janeiro
Slide 16: Brazil
Brazil + General slowdown in the economy since mid 2013 (GDP growth around 2%), affecting entrepreneurial sentiment and capital markets + Bank financing costs have increased, however financing is still available, both for development and stabilised portfolios + Key infrastructure (road, airports, se
Slide 17: Brazil
Brazil Acquisition Sydney Corporate Park Itupeva, Sao Paulo, Brazil International Bungarribee Business Park, Industrial RioEastern Estate, de Janeiro, Brazil Creek, NSW Estimated end value R$795 million / US$350 million Estimated end value R$440 million / US$195 million Land area Land area 197,941 s
Slide 18: United Kingdom
United Kingdom+ Charles Crossland, MD UK Logistics & Jim Johnston, MD UKBP Arlington Business Park, Theale, Andover,United United Kingdom Kingdom
Slide 19: United Kingdom
United Kingdom Economy + UK economy is improving, inflation low, business confidence is up and occupier markets are improving + GDP growth forecast is expected to be over 3% during 2014 Capital markets + Demand outstripping supply with transaction volumes and prices improving UK wide + 15 year prime
Slide 20: United Kingdom
United Kingdom Acquisition Sydney Corporate Park Kuehne & Nagel, Derby East sideBungarribee Locks, Birmingham Industrial Estate, Eastern Creek, NSW Estimated end value £150m Estimated end value £180m Land area 120 acres Land area 7.08 acres 645,000 sq ft B1 Offices, 125 Residential Units, 625 Studen
Slide 21: Continental Europe
Philippe Van der Beken + Managing Director Continental Europe Rheinberg Logistics Centre, Germany
Slide 22: Continental Europe
Continental Europe + Low growth and low interest rate environment + No meaningful activity seen in peripheral or secondary European markets + Demand for new space is expected to be consistent with last year in the core European markets + Supply is mostly driven by “Build to Suit” activity but increa
Slide 23: Continental Europe
Continental Europe Acquisition Sydney Corporate Park Zalando, Monchengladbach, Germany Amazon, Wroclaw,Industrial Bungarribee Poland Estate, Eastern Creek, NSW End value €95 million Estimated end value €76 million Land area 225,187 sqm Land area 224,072 sqm Lettable area 134,343 sqm Lettable area 12
Slide 24: Japan
Japan+ Paul McGarry CEO Japan Goodman Kobe, Japan
Slide 25: Japan
Japan + Japanese economy grew at 5.9% annualised in Q1 2014, as consumers rushed to purchase large-ticket items prior to the consumption tax increase taking effect on 1 April 2014 + Major Japanese corporations have announced wage increases starting April 2014, which may contribute to increased consu
Slide 26: Japan
Japan Acquisition Sydney Corporate Park Goodman Sakai, Sakai City, Osaka Bungarribee Goodman Mizue,Industrial KawasakiEstate, Eastern City Tokyo BayCreek, NSW Valuation A$290 million Land area 29,800 sqm Land area 66,100 sqm Lettable area 130,059 sqm Lettable area 58,700 sqm Contracted owner GJCF Co
Slide 27: Greater China
Section 3+ Greater Capital China+ Management Philip Pearce, Initiatives Managing Director Greater China Pudong International Airport Logistics Park, Pudong International Airport Logistics Park,China China
Slide 28: Greater China
Greater China Hong Kong + Economic growth is supported by tourism spending and strong domestic consumption, with GDP growing by 2.5% year on year + Available logistics space in Hong Kong continues to be limited with market vacancy at 0.5% + Savills forecast a net reduction of ~186,000 sqm by 2017 Ma
Slide 29: Greater China
Greater China Acquisition Sydney Corporate Park ATL Logistics Centre - Container Terminal 3 Kwai Tsing, HK Bungarribee Pudong Industrial International Estate, Airport EasternPark, Logistics Creek, NSW China US$585 million (25% and 50% interest in ATL and CT3 US$200 million Valuation Valuation respec
Slide 30: New Zealand
New Zealand+ John Dakin, CEO New Zealand Highbrook Office Max Highbrook HDL,Park Business New, Zealand New Zealand
Slide 31: New Zealand
New Zealand + A strengthening economy where rising business confidence is driving positive leasing and development outcomes for Goodman Property Trust - GDP is forecast to be around 4.0% this year with a period of sustained growth forecast for the next 2-3 years - Interest rates are moving off histo
Slide 32: New Zealand
New Zealand Acquisition Sydney Corporate Park Highbrook, Business Park, East Tamaki Fonterra, Auckland Bungarribee Industrial Estate, Eastern Creek, NSW Estimated end value In excess of NZ$1.2 billion Estimated end value NZ$92.6 million Land area 107 hectares Land area 4,265 sqm Lettable area 263,38
Slide 33: Funds Management
Section 2+ Funds Management - Nick Kurtis, Group Head of Equities Goodman Interlink, Hong Kong
Slide 34: Funds Management
Funds Management + Increased allocations to real estate globally – Yield focused investment policy in low bond yield environment + Acceptance that returns will be lower for longer – Some investors reviewing return hurdles to compete + Focus remains on partnering with best in class managers – Access
Slide 35: Tailored governance and reporting arrangements
Tailored governance and reporting arrangements Best practice corporate governance and reporting standards are tailored to meet strategic partners’ preferences + Goodman works with its strategic partners to structure an optimal governance approach – Club / JV vehicles typically have an Investment Com
Slide 36: Section 4: Customer service model
Section 4+ Richard Harry, General Manager Business Development Matsudo Centre, Japan
Slide 37: Goodman + Customers
Goodman + Customers + Goodman is actively engaging with our senior customers across our global platform Integrated “in house” industrial property platform + We work to the premise that corporate real estate is fundamentally a two geared operation- inherently local with respect to delivery and ongoin
Slide 38: Case Study: DB Schenker
Case Study: DB Schenker + Our first transaction with Schenker was for a 52,000sqm facility in Tisselt, Belgium in January 2005 + That relationship has now grown to 13 facilities across 5 countries totalling 352,000sqm, making them our 6th largest customer globally + Based on our positive track recor
Slide 39: Case Study: DB Schenker
Case Study: DB Schenker 37
Slide 40: Thank you
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