GARDA Property Group · ASX:GDF
GARDA Property — FY2024 Earnings Presentation
37 slides from GARDA Property's earnings presentation, Aug 1, 2024
Slide 1: FY24 Year Results Presentation
For personal use only FY24 Year Results Presentation | 1 August 2024 GARDA PROPERTY GROUP (ASX: GDF)
Slide 2: Disclaimer
DISCLAIMER This presentation (Presentation) has been prepared on behalf of Garda Property Group (GDF or Group or Garda), comprising Garda Holdings Limited (GHL) and its controlled entities and Garda Capital Limited (ACN 095 039 366) (AFSL 246714) (GCL) as responsible entity of the Garda Diversified
Slide 3: Overview
For personal use only OVERVIEW Pinnacle West, Wacol
Slide 4: Group Overview
GROUP OVERVIEW WHO IS GARDA AND WHAT IS ITS STRATEGY For personal use only REAL ESTATE PLATFORM Internally managed REIT with predominantly south-east Queensland exposure. $509 million 83% Industrial PORTFOLIO VALUE AS PERCENT OF PROPERTY A proven “develop to own” industrial sector focus. Proportiona
Slide 5: Financial Year 2024 Key Highlights
FINANCIAL YEAR 2024 KEY HIGHLIGHTS For personal use only Real Estate PlatformFY24 KEY FINANCIAL AND OPERATIONAL OUTCOMES Complete exit of Melbourne office portfolio at a 21% discount to book value. 6.3 CPS 36.5% Completion of 12,912m² Richlands industrial facility in FY24 DISTRIBUTIONS GEARING Decem
Slide 6: FY24 Operational Outcomes
FY24 OPERATIONAL OUTCOMES KEY STRATEGY EXECUTION RESULTS GREATER THAN FFO GUIDANCE For personal use only Exit from Industrial Proactive Increased Melbourne pipeline capital lending Office delivery management Three remaining assets in the 12,912m² Richlands industrial 9.6 million securities were Gard
Slide 7: Garda Performance: Latent Value Exists Versus Peers
GARDA PERFORMANCE LATENT VALUE EXISTS VERSUS PEERS Garda continues to trade at deeper discounts to industrial REIT peers. For personal use only 1 ASX Performance Since May 2022 (rebased) 2 ASX discount to NTA (%) Peer1 (Ind.) Peer2 (Ind.) GDF.ASX Peer3 (Off./Ind.) Peer4 (Off.) 105% Peer 1 (Ind.) Pee
Slide 8: Garda Performance: Latent Value Exists Versus Peers
GARDA PERFORMANCE LATENT VALUE EXISTS VERSUS PEERS ASX security price to NTA disconnect, represented by a 33% discount to NTA of $1.71 per security. For personal use only The market barely ascribes value to the 25-hectare 3 Garda Implied Value Discount developable industrial land site at North Lakes
Slide 9: Garda Historical Performance
GARDA HISTORICAL PERFORMANCE NTA, GEARING AND PAYOUT RATIO ARE STABLE 1 Gearing (%) 2 NTA per security ($) For personal use only $2.05 $1.96 38% $1.71 36% 36% 37% 34% $1.45 $1.18 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 3 Payout Ratio (%) 4 WALE at 5 Years 105% 5.6 5.5 5.7 101% 98% 93% 90%
Slide 10: Finance
For personal use only FINANCE 41 Bivouac Pl, Wacol
Slide 11: Funds From Operations (FFO)
FUNDS FROM OPERATIONS (FFO) FY24 FY23 For personal use only $000 $000 Net loss after tax1 (42,926) (4,934) Adjustments for non-cash items and one-off items: Valuations – (deduct increases) / add back decreases: Investment properties 39,295 6,470 Derivatives 3,385 (638) Asset disposals – (deduct gain
Slide 12: Capital Management
CAPITAL MANAGEMENT 2 Hedge Profile Key Debt Metrics – 30 June 2024 For personal use only Fixed Variable ▪ 9.6 million stapled securities bought back at Total debt facilities $270.0 million average price of $1.21 representing 4% of Drawn debt $217.2 million securities on issue. Cash $17.0 million 31%
Slide 13: Income Statement
INCOME STATEMENT FY24 FY23 $000 $000 For personal use only Revenue Rental and recovery revenue 27,129 28,781 Interest and lending revenue 3,647 2,775 Other income 674 418 Net gain in fair value of financial instruments - 638 Total revenue and other income 31,450 32,612 Expenses Property expenses (6,
Slide 14: Balance Sheet
BALANCE SHEET 30 Jun 2024 30 Jun 2023 $000 $000 For personal use only Current assets Cash and cash equivalents 17,002 13,164 Trade and other receivables 150 257 Financial assets ❶ 26,177 11,953 Investment properties held for sale ❷ 13,298 111,750 Other assets 741 1,215 Derivative financial instrumen
Slide 15: Net Tangible Assets Reconciliation
NET TANGIBLE ASSETS RECONCILIATION NTA RESET FOLLOWING OFFICE DIVESTMENTS AND INDUSTRIAL REVALUATIONS For personal use only Bldg B, Pinnacle West, Wacol 15
Slide 16: Property Portfolio
For personal use only PROPERTY PORTFOLIO 56-72 Bandara St, Richlands
Slide 17: Property Portfolio
PROPERTY PORTFOLIO INTEGRATED SOUTH-EAST QUEENSLAND INDUSTRIAL PLATFORM Geography and Sector (by Value) For personal use only Cairns / Office Brisbane / Industrial 17% 109-135 Boundary Road, North Lakes 70-82 Main Beach Road, Pinkenba 83% 326 & 340 Thynne Road, Morningside 38, 56, 69 Peterkin Street
Slide 18: Valuation Overview
VALUATION OVERVIEW 5.58% 7.75% 6.06% INDUSTRIAL CAP RATE CAIRNS CAP RATE PORTFOLIO CAP RATE For personal use only ▪ Six of 12 properties were independently valued in May 2024 for the purposes of the full Valuation Property Sector Valuation Cap Rate year reporting, resulting in a $3.7 million (or 0.7
Slide 19: Asset Divestments
ASSET DIVESTMENTS FULL EXIT FROM CONTINUALLY DETERIORATING MELBOURNE OFFICE MARKET Successful exit from the Melbourne suburban office portfolio For personal use only • $104.1 million of office properties divested during FY24. • Including the Box Hill sale in April 2023, Garda has fully divested all
Slide 20: Asset Divestments: 372-402 Progress Road, Wacol
ASSET DIVESTMENTS 372-402 PROGRESS ROAD, WACOL For personal use only ▪ The property has been sold unconditionally and is expected to settle on 20 August 2024 for $13.5 million. ▪ The 4.1 hectare site has a DA approval in place for ~ 14,876m² of built form across four tenancies. ▪ The estimated devel
Slide 21: Lease Expiry Profile
LEASE EXPIRY PROFILE MANAGEABLE EXPIRY PROFILE IN FY25 AND FY26, UNDERPINNING PROPERTY INCOME ▪ FY25 expiry is isolated to the strongly performing Cairns Corporate Tower, Garda’s only office property, where For personal use only 2,707m² of NLA is due to expire across five tenancies. ▪ 898m² - Qld go
Slide 22: Industrial Development
For personal use only INDUSTRIAL DEVELOPMENT Acacia Ridge – Stage 2
Slide 23: Brisbane Industrial Supply
BRISBANE INDUSTRIAL SUPPLY RENT GROWTH EXPECTED TO CONTINUE AS FUTURE SUPPLY REDUCES Future industrial supply remains constrained. Future DA approved supply likely remains contingent on continued market rent growth. For personal use only ▪ The Brisbane market supply for CY24 is estimated at ~670,000
Slide 24: Development Track Record
DEVELOPMENT TRACK RECORD STRONG HISTORY OF ACQUIRING LAND AND DEVELOPING PRIME INDUSTRIAL ASSETS 1 1-9 Kellar Street, Berrinba 2 69 Peterkin Street, Acacia Ridge For personal use only ▪ Speculatively developed ▪ 6,262m² facility completed in 5,683m² multi tenant facility January 2022 as a pre-commit
Slide 25: 38-56 Peterkin Street, Acacia Ridge
38-56 PETERKIN STREET ACACIA RIDGE, QUEENSLAND Construction is well advanced, with practical completion expected in December 2024. Tenant leasing inquiry is positive, with several For personal use only tenant engagements currently underway. Fully leased annualised net property income is forecast at
Slide 26: Peterkin Street, Acacia Ridge
69 PETERKIN STREET ACACIA RIDGE, QUEENSLAND A tenant vacating the property has allowed Garda to activate the balance of land at the rear of the existing 6,262m² warehouse. A For personal use only 3,000m² expansion will occur at a cost of ~$7.0 million. A substantial market rent reversion for the ent
Slide 27: 109-135 Boundary Rd, North Lakes Valuation Journey
109-135 BOUNDARY RD, NORTH LAKES VALUATION JOURNEY – PERMITTING, OPERATIONAL WORKS TO ESTATE QUALITY LAND After acquiring the site for $16m, Garda will have invested approximately $35 million creating 25ha of estate quality land. Upon For personal use only completion a cumulative ~$65 million increa
Slide 28: Built Form at North Lakes
BUILT FORM AT NORTH LAKES OPTIONALITY WITH LOT 1, 2 & 3 DA APPROVALS ANTICIPATED BY Q1CY25 Lot 1-3 Metrics Lot 1 Lot 2 Lot 3 Land (m²) 33,312m² 54,328m² 12,456m² For personal use only NLA (m²) 11,020m² 23,376m² 5,917m² Estimated Costs @ $1,550/m² $17.1m $36.5m $9.2m Estimated Rent @ $185/m² $2.0m $4
Slide 29: Lot 1, North Lakes
LOT 1, NORTH LAKES For personal use only 11,020m² Up to 8 TOTAL LOT 1 NLA TENANCIES 1,200m² - 1,400m² SMALL USER CONFIGURATIONS DA lodged and expected approval in late CY24. Debt headroom available for construction funding. ~10 month construction period. Potential access to income in H2FY26. 29
Slide 30: Lot 2, North Lakes
LOT 2, NORTH LAKES For personal use only 23,376m² Up to 6 TOTAL LOT 2 NLA TENANCIES 2,600m² - 6,000m² SMALL USER CONFIGURATIONS DA approved and construction ready. Construction pricing received at $36.5 million. ~12 month construction period. Potential access to income in H2FY26. 30
Slide 31: Lot 3, North Lakes
LOT 3, NORTH LAKES For personal use only 5,917m² 1-2 TOTAL LOT 3 NLA TENANCIES 2,443m² - 2,769m² SMALL USER CONFIGURATIONS DA lodged and expected approval in late CY24. Debt headroom available for construction funding. ~10 month construction period. Potential access to income in H2FY26. 31
Slide 32: Lending
For personal use only LENDING
Slide 33: Real Estate Lending
REAL ESTATE LENDING ENHANCED RETURNS FROM LENDING Garda will continue to increase its lending activities in FY25, primarily to the residential and FY25 FCST industrial sectors. 18% For personal use only FY24 12% FY23 9% Attractive double-digit returns have been achieved. $26.2 million June 2024 Depl
Slide 34: Guidance
For personal use only GUIDANCE North Lakes (render)
Slide 35: Guidance
GUIDANCE PROJECT DELIVERY CONTINUES TO ORGANICALLY GROW NET PROPERTY INCOME 6.3 cps 0.9 cps 7.2 cps For personal use only FY25 DISTRIBUTION GUIDANCE FY24 FULLY FRANKED DIVIDEND FY25 INCOME RETURN GUIDANCE 1 FY26 Additional NPI from Projects ($m) Distribution & Dividend Guidance ▪ FY25 distribution g
Slide 36: Glossary
GLOSSARY DEFINITIONS AND EXPLANATIONS Item / Term Definition / Explanation For personal use only CCT Cairns Corporate Tower office building located at 15 Lake Street, Cairns. EBIT Earnings before income tax as defined by Garda’s Syndicated Facility Agreement. Funds from Operations is the Group’s und
Slide 37: For personal use only
For personal use only w: gardaproperty.com.au e: info@gardaproperty.com.au Level 21, 12 Creek Street, Brisbane QLD 4000 p: +61 7 3002 5300 GPO Box 5270, Brisbane QLD 4001