Gdi Property Group · ASX:GDI
Gdi Property — H1 FY2023 Earnings Presentation
28 slides from Gdi Property's earnings presentation, Feb 20, 2023
Slide 1: Half year results
Half year results 20 February 2023
Slide 2: Table of contents
Table of contents Acknowledgement of Country 01 02 03 GDI acknowledges and pays respect to the past, present and future Traditional Custodians and Elders of this nation Operational Financial Debt and and the continuation of cultural, spiritual and educational practices of Aboriginal and Torres Strai
Slide 3: Operational highlights – WS2
Operational highlights – WS2 Lightweight steel and timber development of approximately Once operational, 9,500sqm of NLA on Westralia WS2 is also expected Square carpark to generate significantly less emissions than a Utilises existing concrete structure standalone building for foundation support du
Slide 4: Operational highlights – Leasing
Operational highlights – Level 4, 5 Mill Street Leasing Levels of enquiry post re-opening and inevitable COVID-19 wave necessitated employing a second leasing person in August 2022 ˃ Nevertheless, levels of enquiry did not immediately translate to leasing Level 11, 197 St Georges Terrace transaction
Slide 5: Operational highlights - Co-living joint venture
Operational highlights - GDI has always focused on acquiring assets below replacement cost and executing strategies to extract additional value from those assets. Co-living joint venture The joint venture provides access to true experts in remote accommodation, complimenting GDI’s funds management c
Slide 6: Financial snapshot
Financial snapshot NTA NTA upside from WS21 Gearing $1.25 per security 4.00–5.00 cents per security 27% FFO Distribution 2.64 cents per security 2.50 cents per security 1. Based on indicative valuation of WS2 on practical completion 6
Slide 7: Debt and capital management
Debt and capital management Principal Facility drawn to $260.3 million Interest rate caps protect from with undrawn debt of $52.7 million rising rates ˃ On practical completion of WS2, Tranche E terminates, with the limit transferring to Tranche C $100m $50m ˃ In discussions with bank to increase th
Slide 8: The Perth market
The Perth market Perth CBD Net Absorption 60,000 30.00% 40,000 25.00% 20,000 20.00% Net Absorption (sqm) 0 -20,000 15.00% Total population to increase by -40,000 Economy is projected to be 25% 13.0% to 3.1 million people 10.00% -60,000 larger by 2031 through 2031 5.00% -80,000 -100,000 0.00% 2013 20
Slide 9: The portfolio – Westralia Square, Perth
The portfolio – Westralia Square, Perth 31 December 2022 30 June 2022 Valuation date 31 December 2022 31 December 2021 Valuation1 $382.0 million $372.5 million Have now completed most major capital works items, including upgrading the foyer and all the Carrying value1 $382.0 million $376.9 million b
Slide 10: The portfolio – 197 St Georges Terrace, Perth
The portfolio – 197 St Georges Terrace, Perth 31 December 2022 30 June 2022 Valuation date 31 December 2022 30 June 2022 197 St Georges Terrace has become a releasing Valuation $207.5 million $218.0 million story following the departures of Jacobs Carrying value $207.5 million $218.0 million (Worley
Slide 11: The portfolio – 5 Mill Street, Perth
The portfolio – 5 Mill Street, Perth 31 December 2022 30 June 2022 Valuation date 31 December 2022 30 June 2022 Valuation $58.0 million $58.0 million 5 Mill Street has always been an asset that has high appeal to the occupier market – its well Carrying value $58.0 million $58.0 million located, has
Slide 12: The portfolio – 1 Mill Street, Perth
The portfolio – 1 Mill Street, Perth 31 December 2022 30 June 2022 Valuation date 31 December 2022 30 June 2022 Valuation $36.0 million $36.0 million Following the positive occupier feedback on the embodied carbon strategy at WS2, we have now Carrying value $36.0 million $36.0 million designed a new
Slide 13: The portfolio – Perth CBD carparks
The portfolio – Perth CBD carparks 31 December 2022 30 June 2022 Valuation date 31 December 2022 1 December 2021 Purchased in December 2021 on an approximately 5% Valuation $74.50 million $68.75 million passing cash yield, well below the previous 4 year average Carrying value $74.50 million $68.75 m
Slide 14: The portfolio – 180 Hay Street, Perth
The portfolio – 180 Hay Street, Perth 31 December 2022 30 June 2022 Valuation date 31 December 2022 31 December 2021 Valuation $20.50 million $18.40 million Purchased vacant possession in July 2020 for $12.6 million Carrying value $20.50 million $18.40 million Capitalisation rate 8.00% 8.00% Have su
Slide 15: The portfolio – IDOM dealerships
The portfolio – IDOM dealerships 31 December 2022 30 June 2022 Valuation date 30 June 2022 30 June 2022 Valuation $136.5 million $136.5 million IDOM Automotive Group has now sold its entire Australian business to a consortium led by Carrying value $136.5 million $136.5 million management and several
Slide 16: The portfolio – 235 Stanley Street, Townsville
The portfolio – 235 Stanley Street, Townsville 31 December 2022 30 June 2022 Valuation date 31 December 2022 31 December 2020 Valuation $51.0 million $51.5 million After two years of leasing inactivity, there has been a noticeable increase in activity since 30 June Carrying value $51.0 million $51.8
Slide 17: Guidance
Guidance 10% GDI’s financial GDI’s unique business model results in objective is to achieve inconsistent earnings, 10%+p.a. total return1, FFO and AFFO measured both annually and on a We confirm our intent to pay a cash distribution of not three-year cycle less than 5.00 cents per security for FY23,
Slide 18: Appendix – Profit or loss
Appendix – Profit or loss GDI Trust Dec-22 Dec-21 Dec-22 Dec-21 $'000 $'000 $'000 $'000 Revenue from ordinary activities Property revenue 30,776 27,444 29,579 27,547 Funds management income 1,193 1,416 - - Interest revenue 155 59 151 58 Total revenue from ordinary activities 32,125 28,919 29,729 27,
Slide 19: Appendix – Net profit after tax to FFO
Appendix – Net profit after tax to FFO GDI Dec-22 Dec-21 $’000 $’000 Total comprehensive income for the period 1,450 40,115 Acquisition expenses 10 3,598 Contribution resulting from consolidated trusts (4,515) (4,894) Distributions / funds management fees received from consolidated trusts 2,157 2,08
Slide 20: Appendix – Contributors to AFFO
Appendix – Contributors to AFFO Net interest expense significantly higher at $4.7 million Property Division FFO higher than previous ˃ Interest on the debt drawn to fund the construction of WS2 is corresponding period: currently capitalised Corporate and administration expenses decreased due to some
Slide 21: Appendix – Balance sheet
Appendix – Balance sheet Dec-22 Jun-22 Pro forma for post balance sheet events $’000 $’000 Current assets Cash and cash equivalents 13,354 12,570 Non-current assets held for sale 30 1,240 Derivative financial instruments - 528 Other assets 14,719 11,115 ˃ GDI No. 42 Office Trust (Stanley Place) $51.
Slide 22: Appendix – Funds business
Appendix – Funds business GDI No. 29 GDI No. 33 Office Trust Brisbane CBD Office Trust ˃ Originally a two-asset fund, now only ˃ Bought 10 Market Street, Brisbane in 2010 Fund Summary: Fund Summary: holding 5 strata suites in 251 Adelaide and decided to strata it in 2012 Terrace ˃ Established ˃ Esta
Slide 23: Appendix – Funds business
Appendix – Funds business GDI No. 36 GDI No. 38 Perth CBD Office Trust Diversified Property Trust ˃ Owns the iconic 1 Adelaide ˃ Originally a seven-asset portfolio Fund Summary: Fund Summary: Terrace, Perth purchased from UGL on a sale and leaseback basis with five of those assets ˃ Established ˃ Ag
Slide 24: Appendix – Funds business
Appendix – Funds business GDI No. 42 GDI No. 43 Office Trust Property Trust ˃ Originally a two-asset fund with ˃ Owns 6 Sunray Drive, Innaloo, home to Fund Summary: Fund Summary: similar asset management plans Perth’s only IKEA store ˃ Established ˃ Now only holding 235 Stanley Street, ˃ Established
Slide 25: Appendix – Funds business
Appendix – Funds business GDI No. 46 Property Trust ˃ Owns 17 Perth metropolitan properties Fund Summary: occupied by high profile car dealerships and service centres ˃ Established – 01 February 2020 ˃ Debt facility extended for another two years to February 2025 ˃ Capitalisation rate – 5.75% - 6.75
Slide 26: Appendix – Property information
Appendix – Property information December 22 December 21 December 22 Property Maintenance Incentives & IFRS NPI1 FFO IFRS NPI1 FFO Capex Spent capex spent lease costs $m $m $m $m $m $m $m 1 Mill Street - - - 5 Mill Street - 0.1 0.6 197 St Georges Terrace - 2.9 0.6 Mill Green, Perth 6.3 8.6 8.1 11.2 -
Slide 27: Disclaimer
Disclaimer This presentation has been prepared and issued by GDI Property Group Limited or warrant that the information in this presentation is free from errors (ACN 166 479 189) and GDI Funds Management Limited (ABN 34 107 354 003, or omissions, is complete or is suitable for your intended use. In
Slide 28: Tere)!
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