Gpt Group · ASX:GPT
Gpt — H1 2018 Earnings Presentation
100 slides from Gpt's earnings presentation, Aug 13, 2018
Slide 1: Interim Result
The GPT Group INTERIM RESULT
Slide 2: Agenda
SECTION SPEAKER AGENDA 2018 Interim Result Highlights Bob Johnston Financial Summary & Capital Management Anastasia Clarke Retail Vanessa Orth Office & Logistics Matthew Faddy Funds Management Nicholas Harris Summary & Outlook Bob Johnston INTERIM RESULT 2018
Slide 3: 2018 Interim Result Financial Highlights
RESULTS PRESENTATION 3 2018 Interim Result Financial Highlights 2018 Interim Result Financial Highlights 3.2% 2.5% Our Vision To be the most respected property company in Australia in the eyes of our Investors, People, Customers and FFO GROWTH DISTRIBUTION GROWTH Communities PER SECURITY PER SECURIT
Slide 4: Progress on Strategic Priorities
Progress on Strategic Priorities Progress on Strategic Priorities Investment Portfolio Balance Sheet & Capital Management + Portfolio occupancy of 97.4% + Net Gearing at 24.7% + Like for Like income growth 3.9% + Interest rate hedging at 79% + Revaluation gains of $457 million + Credit ratings A / A
Slide 5: Finance & Treasury
FINANCE & TREASURY INTERIM RESULT 2018
Slide 6: Financial Summary
Financial Summary Financial Summary 6 MONTHS TO 30 JUNE ($ MILLION) 2018 2017 CHANGE $728.5m Funds From Operations (FFO) 289.4 279.8 3.4% STATUTORY NET PROFIT Valuation increases 456.7 480.0 AFTER TAX Treasury items marked to market (8.9) (3.7) Other items1 (8.7) (4.9) Net Profit After Tax (NPAT) Fu
Slide 7: Segment Result
RESULTS PRESENTATION 7 Segment Result Segment Result 6 MONTHS TO 30 JUNE 2018 2017 Operations net income has increased 3.2% as a result of ($ MILLION) structured rent increases. This was offset by lower Development net income. Retail 157.8 157.0 ▲ 0.5% As a result of continued high occupancy levels
Slide 8: Capital Management
Capital Management Capital Management + Issued A$90 million HKD bond for 13 year term at 137 basis points KEY STATISTICS margin JUN 2018 DEC 2017 + Further diversified funding sources with 53% sourced from debt Net tangible assets per security $5.31 $5.04 capital markets Net gearing 24.7% 24.4% + Co
Slide 9: Retail
GPT The GPT Group . INTERIM RESULT 2018
Slide 10: Retail Portfolio
Retail Portfolio Retail Portfolio 2.3% 4.4% 99.7% PORTFOLIO TOTAL SPECIALTY PORTFOLIO Retail Portfolio Quality & LIKE FOR LIKE MAT GROWTH OCCUPANCY Geographic Exposure INCOME GROWTH NT QLD 6% + Stable property income growth, partially offset by rising 8% Key electricity costs across the portfolio. M
Slide 11: Retail Sales
RESULTS PRESENTATION 11 Retail Sales Retail Sales Portfolio MAT Growth by Category 17.4% 4.4% Total Specialty MAT Growth 12.0% 10.4% 7.5% 6.9% 4.4% 3.9% 2.3% Specialties >400sqm Specialties <400sqm 0.5% 12.8% 1.7% -0.6% -3.2% -2.7% -4.1% -6.8% -7.3% Specialty Sales Productivity (<400sqm) Total Centr
Slide 12: Retail Leasing
Retail Leasing Retail Leasing + High quality portfolio continues to be in strong demand resulting in low vacancy and sustainable occupancy costs + Specialty rental CAGR of +4.5% (over the term of the lease) on new deals completed 1H 2018 + Introduced 48 new retail brands to the portfolio Portfolio L
Slide 13: Office & Logistics
OFFICE & LOGISTICS INTERIM RESULT 2018
Slide 14: Office Highlights
Office Highlights Office Highlights 5.5% $ 377.9M 14.4% PORTFOLIO VALUATION TOTAL PORTFOLIO LIKE FOR LIKE UPLIFT RETURN Office Portfolio Quality & INCOME GROWTH (12 MONTHS) Geographic Exposure + Office valuation gains primarily driven by market rental Key growth, WACR of 5.02% Highlights + Leases si
Slide 15: Office Leasing
RESULTS PRESENTATION 15 Office Leasing Office Leasing 53,300sqm Leasing activity has resulted in an increased Melbourne Central Tower | Accelerating income + ACCC vacated 7,600sqm in December 2017 signed leases in H1 2018 portfolio occupancy of 96.6% with a further 28,600sqm terms agreed + Asset occ
Slide 16: Office Valuations
Office Valuations Office Valuations + Valuation uplift of $377.9m driving a 12 month Total Effective Rental Growth by Market - Prime 1 year growth Portfolio Return of 14.4% Net Effective Rents ($/sqm pa) +12% + Market rental growth has driven 72% of total valuation $800 Sydney $807 gains $700 +13% +
Slide 17: Logistics Highlights
RESULTS PRESENTATION 17 Logistics Highlights Logistics Highlights 3.6% 96.6% 10.0% PORTFOLIO PORTFOLIO TOTAL PORTFOLIO LIKE FOR LIKE OCCUPANCY RETURN Logistics Portfolio INCOME GROWTH (12 MONTHS) Geographic Exposure + High portfolio occupancy and long WALE of 7.4 years Key + 49,500sqm of leases sign
Slide 18: Office & Logistics Development
Office & Logistics Development Office & Logistics Development 4 Murray Rose, Sydney Olympic Park Melbourne Central Rooftop Huntingwood, NSW (Stage 1B) 65% committed to NSW Rural Fire Service and HoAs Seeking pre-commit for 20,000sqm complex above retail centre 11,000sqm facility on track for August
Slide 19: 32 Smith Street, Parramatta
RESULTS PRESENTATION 19 32 Smith Street, Parramatta 32 Smith Street, Parramatta Development Update + Terms agreed over 13,600sqm, representing 51% of Office NLA + Demolition of existing building has commenced + Contractor to be appointed imminently and construction set to commence in Q4 2018 subject
Slide 20: Funds Management
FUNDS MANAGEMENT INTERIM RESULT 2018
Slide 21: Funds Management Highlights
RESULTS PRESENTATION 21 Funds Management Highlights Funds Management Highlights FUND 15.9% 13.5% 20.6% TOTAL GPT FUND RETURN ASSETS INVESTMENT (1YR) ANNUAL INCREASE TOTAL RETURN PROFIT GWOF $7.5 bn 13.9% $1.5 bn IN ASSETS UNDER (12 MONTHS) GROWTH MANAGEMENT GWSCF $4.9 bn 8.4% $1.0 bn Total $12.4 bn
Slide 22: Fund Updates
Fund Updates Fund Updates GPT • Achieved an 8.4% total return for the 12 months to 30 June 2018 • Distribution reinvestment plan take-up of 28% (excluding GPT) Wholesale • Portfolio quality improved with $1.2 billion of asset recycling over Shopping past 18 months Centre − Super-regional weighting i
Slide 23: Summary & Outlook
RESULTS PRESENTATION 23 Summary & Outlook Summary & Outlook ECONOMIC OUTLOOK SECTOR OUTLOOK GROUP OUTLOOK + Strong population growth at 1.5% p.a. + Low wages growth and competition remain + Office and logistics sectors will continue to + Unprecedented infrastructure spend in major headwinds for reta
Slide 24: Disclaimer
Disclaimer S,/413,-*+ The information provided in this presentation has been prepared by The GPT Group comprising GPT RE Limited (ACN 107 426 504) AFSL (286511), as responsible entity of the General Property Trust, and GPT Management Holdings Limited (ACN 113 510 188). The information provided in th
Slide 25: Riverside Centre, Brisbane
RESULTS PRESENTATION 25 Riverside Centre, Brisbane
Slide 26: Interim Result Data Pack
2018 INTERIM RESULT DATA PACK
Slide 27: Contents
CONTENTS GPT Overview 26 Financial Performance 30 Retail Portfolio 40 Office Portfolio 54 Logistics Portfolio 70 Development 84 Funds Management 86 Note: All information included in this pack includes GPT owned assets and GPT’s interest in the Wholesale Funds (GWOF and GWSCF) unless otherwise stated
Slide 28: GPT Overview
2018 INTERIM RESULT GPT OVERVIEW GPT Overview
Slide 29: GPT Overview
GPT Overview GPT’s core portfolio consists of high quality properties in the retail, office and logistics sectors. The portfolio includes some of the most iconic buildings in Australia and award winning developments. GPT Portfolio Diversity Retail Portfolio Office Portfolio Logistics Portfolio As at
Slide 30: GPT Portfolio Metrics
GPT OVERVIEW 27 GPT Portfolio Metrics Across the three sectors, GPT has maintained high occupancy and a long WALE. Portfolio Size Comparable Income Growth1 WALE Occupancy WACR Retail $5.99b 2.3% 4.1 years 99.7% 4.97% Office $5.35b 5.5% 5.3 years 96.6% 5.02% Logistics $1.67b 3.6% 7.4 years 96.6% 6.17
Slide 31: Glossary
Glossary A-Grade As per the Property Council of Australia’s ‘A Guide to Office Building Quality’ GLA Gross Lettable Area AFFO Adjusted Funds From Operations: Adjusted Funds From Operations is GWOF GPT Wholesale Office Fund defined as FFO less maintenance capex, leasing incentives and one-off items c
Slide 32: Glossary (continued)
GPT OVERVIEW 29 NTA Net Tangible Assets Specialty Tenants Retail tenancies with a GLA below 400 sqm Ordinary Securities Ordinary securities are those that are most commonly traded on the ASX: Sqm Square metre The ASX defines ordinary securities as those securities that carry no TR Total Return: Tota
Slide 33: Financial Performance
2018 INTERIM RESULT FINANCIAL PERFORMANCE Financial Performance
Slide 34: Financial Summary
Financial Summary 6 months to 30 June 2018 2017 Change Funds From Operations ($m) 289.4 279.8 3.4% Net profit after tax ($m)1 728.5 751.2 3.0% FFO per ordinary security (cents) 16.04 15.54 3.2% FFO yield (based on period end price) 6.4% 6.5% Distribution per ordinary security (cents) 12.61 12.30 2.5
Slide 35: Results Summary
FINANCIAL PERFORMANCE 31 Results Summary Segment performance 6 months to 30 June ($m) 2018 2017 Retail Operations net income 156.8 152.0 Development net income 1.0 5.0 157.8 157.0 Office Operations net income 132.9 127.3 Development net income 0.6 0.6 133.5 127.9 Logistics Operations net income 51.8
Slide 36: Funds From Operations to Adjusted Funds From Operations
Funds From Operations to Adjusted Funds From Operations 6 months to 30 June ($m) 2018 2017 Net Operating Income 370.2 348.6 Financing and corporate overheads (80.8) (68.8) Funds From Operations 289.4 279.8 Maintenance capital expenditure (26.7) (21.4) Lease incentives (including rent free) (29.8) (2
Slide 37: NTA Movement
FINANCIAL PERFORMANCE 33 NTA Movement Net Assets No. of Securities NTA per Security NTA Movement ($m) (million) ($) NTA position as at 31 December 20171 9,075.0 1,801.6 5.04 FFO 289.4 0.16 Revaluations 456.7 0.25 Mark to market of Treasury (1.1) (0.00) Distribution (227.6) (0.13) Issue of securities
Slide 38: Capital Management Summary
Capital Management Summary Gearing ($m) As at 30 June 2018 Interest Cover ($m) 30 June 2018 Total assets 13,654.2 Funds From Operations 289.4 Less: Intangible assets (29.2) Add: Income tax expense 8.0 Less: Cross currency swap assets (172.7) Add: Finance Costs 59.5 Total tangible assets 13,452.3 Ear
Slide 39: Look Through Gearing
FINANCIAL PERFORMANCE 35 Look Through Gearing Look Through Gearing as at 30 June 2018 GPT Group GWOF GWSCF Other2 Total Share of assets of non-consolidated entities Group total tangible assets 13,452.3 13,452.3 Plus: GPT share of assets of non-consolidated entities 1,861.7 1,398.0 1,314.3 4,574.0 Le
Slide 40: Debt
Debt Debt Cost Average for period Average Debt % of Average Debt Interest Rate Sources of Drawn Debt ending 30 June 2018 ($m) (%) (%) As at OF SOURCES 30 June 2018 DEBT DRAWN Hedged debt 2,388 73% 2.7% Floating debt 901 27% 1.9% Total debt 3,289 100% 2.5% Margin 1.3% USPP 29% Domestic MTNs 25% Fees
Slide 41: Debt Maturity Profile
FINANCIAL PERFORMANCE 37 Debt Maturity Profile Undrawn committed facilities of $812 million. 600 Debt Maturity Profile As at 30 June 2018 (A$ millions) 500 400 $ millions 300 200 100 0 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2018 2019 2020 2021 2022
Slide 42: Liquidity Profile
Liquidity Profile Liquidity Profile As at 30 June 2018 1.0 0.9 0.8 0.7 0.6 ($bn) 0.5 0.4 0.3 0.2 0.1 0.0 Cash balance Undrawn Current Development/Capex Retained Debt facility Excess liquidity 30 June 2018 existing liquidity earnings expiries at 31 Dec 2018 facilities FINANCIAL PERFORMANCE 38
Slide 43: Hedging Profile
FINANCIAL PERFORMANCE 39 Hedging Profile Hedging Profile as at 30 June 2018 Average Rate on Hedged Balance Principal Amount of Derivative Principal Amount of Hedging Position excl Margins Financial Instruments ($m) Fixed Rate Borrowings ($m) 30 June 2018 2.82% 1,915 725 30 June 2019 2.68% 2,215 475
Slide 44: Retail Portfolio
2018 INTERIM RESULT RETAIL PORTFOLIO Retail Portfolio
Slide 45: Retail Portfolio Overview
Retail Portfolio Overview GPT is a leading owner, manager and developer of Australian retail property. GPT’s retail investments of $6.0 billion include a portfolio of assets held on the Group’s Balance Sheet and an investment in the GPT Wholesale Shopping Centre Fund (GWSCF). Darwin New South Wales
Slide 46: Retail Portfolio Summary
RETAIL PORTFOLIO 41 Retail Portfolio Summary Top Ten Tenants1 Geographic Weighting As at 30 June 2018 As at 30 June 2018 Cotton On NSW 42% Wesfarmers Woolworths Clothing Myer Just Group VIC 44% 4.8% 4.0% 2.8% 2.8% 2.5% QLD 8% NT 6% 1.9% 1.4% 1.3% 1.2% 1.2% Hoyts Country Road BB Retail Retail Apparel
Slide 47: Retail Portfolio Summary
Retail Portfolio Summary GLA 30 Jun 18 30 Jun 18 External or Centre Specialty Specialty (100% Interest) Fair Value Cap Rate Internal MAT Occupancy MAT2 State Ownership (sqm) ($m) (%) Valuation Occupancy ($m) Cost2 ($psm) GPT Portfolio Casuarina Square NT 50% 55,000 302.2 5.50% Independent 99.5% $355
Slide 48: Income and Fair Value Schedule
RETAIL PORTFOLIO 43 Income and Fair Value Schedule Income 6 months to 30 Jun ($m) Fair Value Reconciliation Fair Value Development Maintenance Lease Net Other Fair Value % of 31 Dec 17 Capex Capex Incentives Acquisitions Sales Revaluations Adjustments 30 Jun 18 Portfolio 2017 2018 Variance ($m) ($m)
Slide 49: Lease Expiry Profile
Lease Expiry Profile Weighted Average Lease Expiry (by base rent) as at 30 June 20181 Major Tenants 9.3 years Specialty Tenants > 400sqm 4.6 years Specialty Tenants < 400sqm 2.9 years Weighted Total 4.1 years Total Centre Total Specialty Tenants < 400sqm 16% 18% 15% 15% 17% 17% 16% 16% 13% 8% 8% 6%1
Slide 50: Retail Sales Summary
RETAIL PORTFOLIO 45 Retail Sales Summary Comparable Comparable Centre MAT Centre MAT Specialty MAT Specialty MAT4 Specialty ($m) Growth Growth4 ($psm) Occupancy Cost4 GPT Portfolio Casuarina Square $355.9m (8.0%) (8.8%) 10,317 18.2% Charlestown Square $574.0m 2.3% 1.6% 12,671 14.2% Highpoint Shoppin
Slide 51: Comparable Change in Retail Sales by Category
Comparable Change in Retail Sales by Category Comparable Change in Retail Sales by Category as at 30 June 2018 MAT ($m) 12 Months Growth Department Store $106.9m (4.1%) Discount Department Store $222.1m (3.2%) Supermarket $422.2m (0.6%) Cinemas $62.8m (6.8%) Other Retail1 $166.3m 2.7% Total Specialt
Slide 52: Retail Sales
RETAIL PORTFOLIO 47 Retail Sales Specialty MAT Growth1 6.5% 5.9% 4.4% 4.2% 4.2% 3.6% 3.2% 2.8% 2.7% 2.6% 2.1% 2.1% 1.8% 1.7% 1.5% 1.2% 1.1% 0.5% 0.4% 0.2% 0.3% Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun 17 Dec 17
Slide 53: External Valuation Summary
External Valuation Summary Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) GPT Portfolio Casuarina Square NT 50% 30 Jun 18 Savills 302.2 5.50% Charlestown Square NSW 100% 30 Jun 18 KF 968.0 5.25% Highpoint Shopping Centre VIC 17% 30 Jun 18 CBRE 447.0 4.13% Melbourne Central VIC 10
Slide 54: Retail Sustainability
RETAIL PORTFOLIO 49 Retail Sustainability Water (Total) Emissions Waste % Area GLA Litres/m2 kg CO2-e/m2 Recycled/Reused GPT Portfolio Casuarina Square 55,000 1,994 80 24% Charlestown Square 94,100 538 12 66% Highpoint Shopping Centre 154,300 965 47 38% Melbourne Central 56,700 2,099 99 17%1 Rouse H
Slide 55: Case Study: Melbourne Central
Investing in our Assets Case Study: Melbourne Central + Significant refurbishment across existing asset commenced in 2016 + Investment to support asset positioning in a high growth market Project Status $ 24m $ 36m $ 33m 2018 – 19 delivered underway future delivery schedule Translating to Retailer L
Slide 56: Retail Sales Categories
RETAIL PORTFOLIO 51 Retail Sales Categories Broad Category Sub Category Tenant Examples RETAIL Department Store Department Store David Jones, Myer Discount Department Store Discount Department Store Kmart, Big W, Target Supermarkets Supermarket Woolworths, Coles Fashion, Footwear & Unisex, Womenswea
Slide 57: Rouse Hill Town Centre
Rouse Hill Town Centre Rouse Hill Data Sydney Metro Northwest • New station to be located directly 42km outside the Rouse Hill Town Centre from Sydney CBD • Services expected to start in 1H 2019, with a train every 4 minutes at peak times • Travel time of 45 minutes to 439,250 Martin Place station t
Slide 58: Highpoint Shopping Centre, VIC
RETAIL PORTFOLIO 53 Highpoint Shopping Centre, VIC
Slide 59: Office Portfolio
2018 INTERIM RESULT OFFICE PORTFOLIO Office Portfolio
Slide 60: Office Portfolio Overview
Office Portfolio Overview GPT’s office portfolio comprises ownership in 22 high quality assets with a total investment of $5.4 billion. The portfolio includes assets held on the Group’s balance sheet and an investment in the GPT Wholesale Office Fund (GWOF). New South Wales Victoria GPT Owned GPT Ow
Slide 61: Office Portfolio Summary
OFFICE PORTFOLIO 55 Office Portfolio Summary The GPT office portfolio has exposure to 100% Prime Grade office assets and benefits from a diversified tenant base. Top Ten Tenants1 Tenant Mix by Industry Geographic Weighting As at 30 June 2018 As at 30 June 2018 As at 30 June 2018 ANZ Banking Governme
Slide 62: Income and Fair Value Schedule
Income and Fair Value Schedule Fair Value Reconciliation Income 6 months to 30 Jun ($m) Capex Fair Value Development Maintenance Lease Net Other Fair Value % of 31 Dec 17 Capex Capex Incentives Acquisitions Sales Revaluations Adjustments 30 Jun 18 Portfolio 2017 2018 Variance ($m) ($m) ($m) ($m) ($m
Slide 63: Office Portfolio Summary
OFFICE PORTFOLIO 57 Office Portfolio Summary Office Occupancy Office NLA (100% 30 Jun 18 30 Jun 18 Independent Inc. WALE Interest) Fair Value Cap Rate or Internal Inc. Signed Heads of by Income State Ownership (sqm) ($m) (%) Valuation Actual Leases Agreement (Years) GPT Portfolio Australia Square, S
Slide 64: Office Occupancy (GWOF Portfolio)
Office Occupancy Office NLA (100% 30 Jun 18 30 Jun 18 Independent Inc. WALE Interest) Fair Value Cap Rate or Internal Inc. Signed Heads of by Income State Ownership (sqm) ($m) (%) Valuation Actual Leases Agreement (Years) GWOF Portfolio Liberty Place, 161 Castlereagh Street, Sydney NSW 50% 56,400 71
Slide 65: External Valuation Summary
OFFICE PORTFOLIO 59 External Valuation Summary The entire GPT office portfolio was valued externally in the 6 months to 30 June 2018. Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) GPT Portfolio Australia Square, Sydney NSW 50% 30 Jun 18 Colliers 526.5 5.02% Citigroup Centre, Syd
Slide 66: External Valuation Summary (GWOF)
Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) GWOF Portfolio Liberty Place, 161 Castlereagh Street, Sydney NSW 50% 30 Jun 18 KF 710.0 4.63% DP1: 5.40% Darling Park 1 & 2, Sydney NSW 50% 31 Mar 18 JLL 928.0 DP2: 5.05% Darling Park 3, Sydney NSW 100% 31 Mar 18 JLL 540.0 5.05% 580
Slide 67: Office Sustainability
OFFICE PORTFOLIO 61 Office Sustainability NABERS Energy Rating (including Green Power) NABERS Energy Rating (excluding Green Power) NABERS Water Rating 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 GPT Portfolio Australia Square, Sydney (Tower) 4.0 4.5 4.5 4.5 5.0 3.5 4.
Slide 68: NABERS Energy Rating (GWOF)
NABERS Energy Rating (including Green Power) NABERS Energy Rating (excluding Green Power) NABERS Water Rating 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 GWOF Portfolio Liberty Place, 161 Castlereagh 5.0 5.0 5.0 5.5 5.5 5.0 5.0 5.0 5.0 5.0 – 3.5 3.5 4.0 4.0 Street, Syd
Slide 69: Office Sustainability
OFFICE PORTFOLIO 63 Office Sustainability Water (Total) Emissions Waste Area NLA Litres/m2 kg CO2-e/m2 % Recycled/Reused GPT Portfolio Australia Square, Sydney 51,500 917 70 54% Citigroup Centre, Sydney 73,400 612 71 43% MLC Centre, Sydney 67,000 992 57 32% 1 Farrer Place, Sydney 84,300 687 79 56% M
Slide 70: Office Sustainability (GWOF)
Water (Total) Emissions Waste Area NLA Litres/m2 kg CO2-e/m2 % Recycled/Reused GWOF Portfolio Liberty Place, 161 Castlereagh Street, Sydney 56,400 745 12 53% Darling Park 1 & 2, Sydney 101,800 608 30 39% Darling Park 3, Sydney 29,800 584 31 30% 580 George Street, Sydney 37,000 507 51 41% workplace6,
Slide 71: Lease Expiry Profile
OFFICE PORTFOLIO 65 Lease Expiry Profile Lease Expiry Profile (by Income) 16% 14% 13% 13% 10% 9% 7% 7% 5% 4% 2% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028+ Note: Includes Signed Leases.
Slide 72: Office – Sydney CBD
Office –– Sydney Office Sydney CBD CBD • A rebound in net absorption and further negative $1,200 Sydney CBD: Rents and Incentives (2Q18) 40% net supply due to withdrawals has maintained $1,100 35% downward pressure on the vacancy rate to being at $1,000 Incentives (RHS) $1,085 (+6.6%) the lowest lev
Slide 73: Office – Melbourne CBD
OFFICE PORTFOLIO 67 Office Office– –Melbourne MelbourneCBD CBD • Melbourne’s solid state economic backdrop has $600 Melbourne CBD: Rents and Incentives (2Q18) 45% $573 maintained strong net absorption levels, which have $550 Net Face (+8.5%) 40% significantly exceeded negative net supply and $500 Re
Slide 74: Office – Brisbane CBD
Office Office––Brisbane BrisbaneCBD CBD Brisbane CBD: Rents and Incentives (2Q18) • Brisbane’s recovery and tightening vacancy rate $800 38.8% 45% continued due to demand exceeding supply, however, $700 Net Face (+210bps) 40% demand is still tepid and down on last year, whilst $600 Rent (LHS) $597 3
Slide 75: Metropolitan & Mixed Use Opportunities
OFFICE PORTFOLIO 69 Metropolitan & Mixed Use Opportunities Parramatta Camellia • Second largest CBD in NSW • Draft Camellia Town Centre • 23km west of Sydney CBD Master Plan exhibited in 2018, identifying GPT's 8ha land parcel • Regional centre for as part of future mixed-use zone Greater Western Sy
Slide 76: Logistics Portfolio
2018 INTERIM RESULT LOGISTICS PORTFOLIO Logistics Portfolio
Slide 77: Logistics Portfolio Overview
Logistics Portfolio Overview GPT’s logistics portfolio consists of ownership in 29 high quality logistics and business park assets located across Australia’s Eastern Seaboard. New South Wales Victoria • Rosehill Business Park, Camellia • Citiwest Industrial Estate, Altona North • 10 Interchange Driv
Slide 78: Logistics Portfolio Summary
LOGISTICS PORTFOLIO 71 Logistics Portfolio Summary The logistics portfolio delivered a Total Portfolio Return of 10%, underpinned by a high occupancy level of 96.6% and a long weighted average lease expiry of 7.4 years. Top Ten Tenants1 Geographic Weighting As at 30 June 2018 As at 30 June 2018 Rand
Slide 79: Lease Expiry Profile
Lease Expiry Profile Lease Expiry Profile (by Income) 34% 14% 13% 10% 5% 4% 4% 4% 4% 4% 3% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028+ Note: Includes Signed Leases. LOGISTICS PORTFOLIO 72
Slide 80: Income and Fair Value Schedule
LOGISTICS PORTFOLIO 73 Income and Fair Value Schedule Income 6 months to 30 Jun ($m) Fair Value Reconciliation Fair Value Development Maintenance Lease Net Other Fair Value % of 31 Dec 17 Capex Capex Incentives Acquisitions Sales Revaluations Adjustments 30 Jun 18 Portfolio 2017 2018 Variance ($m) (
Slide 81: Income and Fair Value Schedule (continued)
Income 6 months to 30 Jun ($m) Fair Value Reconciliation Fair Value Development Maintenance Lease Net Other Fair Value % of 31 Dec 17 Capex Capex Incentives Acquisitions Sales Revaluations Adjustments 30 Jun 18 Portfolio 2017 2018 Variance ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) (%) 54 Eastern
Slide 82: Logistics Portfolio Summary
LOGISTICS PORTFOLIO 75 Logistics Portfolio Summary Logistics Occupancy GLA (100% 30 Jun 18 30 Jun 18 Independent or Inc. WALE Interest) Fair Value Cap Rate Internal Inc. Signed Heads of by Income State Ownership (sqm) ($m) (%) Valuation Actual Leases Agreement (Years) GPT Portfolio Rosehill Business
Slide 83: Logistics Occupancy
Logistics Occupancy GLA (100% 30 Jun 18 30 Jun 18 Independent or Inc. WALE Interest) Fair Value Cap Rate Internal Inc. Signed Heads of by Income State Ownership (sqm) ($m) (%) Valuation Actual Leases Agreement (Years) 18-24 Abbott Road, Seven Hills NSW 100% 18,100 37.3 5.75% Independent 100.0% 100.0
Slide 84: Independent Valuation Summary
LOGISTICS PORTFOLIO 77 Independent Valuation Summary 66% of the logistics portfolio was valued independently in the 6 months to 30 June 2018. Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) GPT Portfolio Rosehill Business Park, Camellia NSW 100% 31 Dec 17 CBRE 81.4 6.50% 10 Interc
Slide 85: Independent Valuation Summary (continued)
Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) 38 Pine Road, Yennora NSW 100% 30 Jun 18 M3 54.0 7.00% 18-24 Abbott Road, Seven Hills NSW 100% 30 Jun 18 Savills 37.3 5.75% 1 Huntingwood Drive, Huntingwood2 NSW 100% 30 Jun 18 CBRE 61.2 5.57% 54 Eastern Creek Drive, Eastern Creek NS
Slide 86: Logistics – Sydney
LOGISTICS PORTFOLIO 79 Logistics Logistics–-Sydney Sydney ● Sydney remains a strong market, with land sqm Sydney Industrial Supply ('000 m2) availability becoming more constrained which is 1,400 reflected in land price growth. 1,200 ● New supply will end the year on a high in response 1,000 to recor
Slide 87: Logistics – Melbourne
Logistics Logistics–-Melbourne Melbourne sqm Melbourne Industrial Supply ('000 m2) ● Gross take-up has been strong during 2018, driven by demand for existing stock. 1,000 900 ● Population growth and a pipeline of infrastructure 800 Historical should continue to support demand. 700 average 600 ● Prim
Slide 88: Logistics – Brisbane
LOGISTICS PORTFOLIO 81 Logistics –-Brisbane Logistics Brisbane sqm Brisbane Industrial Supply ('000 m2) ● Demand was steady during the first half 700 due to a strong second quarter. 600 ● The outlook for economic growth has improved. 500 Historical 400 average ● Vacancy is steady and is supported by
Slide 89: Sydney Industrial Market
Sydney Industrial Market GPT GPT Industrial Assets Logistics Assets Erskine Park Eastern Creek 1 Erskine Park 2 Eastern Creek 3 Huntingwood Dr, Huntingwood 4 Victoria St, Wetherill Park 5 Pine Rd, Yennora 6 Rosehill Business Park, Camellia 7 Derby St, Silverwater 8 Holker St, Newington 9 Sydney Olym
Slide 90: Sunshine Business Estate, Sunshine, VIC
LOGISTICS PORTFOLIO 83 Sunshine Business Estate, Sunshine, VIC
Slide 91: Development
2018 INTERIM RESULT DEVELOPMENT Development
Slide 92: Development Overview
Development Overview Forecast Forecast Cost to Complete Target Total Cost Completion Sector Ownership Interest (%) ($m) GPT’s Share ($m) Fund’s Share ($m) Date Underway Lot 21 Old Wallgrove Road, Eastern Creek, NSW Logistics 100% GPT 50 24 0 2H 2018 1B Huntingwood, Huntingwood, NSW Logistics 100% GP
Slide 93: Development Overview (continued)
DEVELOPMENT 85 Development Overview (continued) Forecast Forecast Cost to Complete Target Total Cost Completion Sector Ownership Interest (%) ($m) GPT’s Share ($m) Fund’s Share ($m) Date Future Pipeline MLC Centre, Sydney Office 50% GPT 35 35 0 100 Queen Street, Melbourne Office 100% GWOF 150 0 150
Slide 94: Funds Management
2018 INTERIM RESULT FUNDS MANAGEMENT Funds Management
Slide 95: GPT Funds Management Summary
GPT Funds Management Summary The Group’s Funds Management platform provides GPT with an important source of income through funds management, property management and development management fees. In addition, the platform provides GPT investors with access to a steady income stream through a significa
Slide 96: GPT Funds Management Overview
FUNDS MANAGEMENT 87 GPT Funds Management Overview Historical Growth in Funds under Management Growth in Funds under Management for the 12 months to 30 June 2018 $12.0b $12.4b $10.4b $10.7b $0.7b $12.4b $9.6b $10.0b $1.0b $10.7b $7.1b $6.6b $5.3b $5.6b Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec
Slide 97: GWOF Overview
GWOF Overview GWOF provides wholesale investors with exposure to 17 high quality office assets, located across Australia’s key CBD office markets. At 30 June 2018, the Fund had a value of $7.5 billion. June 2018 June 2017 GWOF Ownership Composition As at 30 June 20181 Number of Assets 17 17 Total As
Slide 98: GWOF Capital Management
FUNDS MANAGEMENT 89 GWOF Capital Management Total borrowings for the Fund at 30 June 2018 were $1,339 million resulting in net gearing of 17.4%. GWOF Capital Management Summary as at 30 June 2018 Net Gearing 17.4% Weighted Average Cost of Debt 4.2% Fees and Margins (included in above) 1.6% Weighted
Slide 99: GWSCF Overview
GWSCF Overview GWSCF provides wholesale investors with exposure to 8 high quality retail assets. At 30 June 2018, the Fund had a value of $4.9 billion. June 2018 June 2017 GWSCF Ownership Composition As at 30 June 20181 Number of Assets 8 8 Total Assets $4.9b $3.9b Net Gearing 25.2% 11.0% One Year E
Slide 100: GWSCF Capital Management
FUNDS MANAGEMENT 91 GWSCF Capital Management Total borrowings for the Fund at 30 June 2018 were $1,239 million resulting in net gearing of 25.2%. GWSCF Capital Management Summary as at 30 June 2018 Net Gearing 25.2% Weighted Average Cost of Debt 4.1% Fees and Margins (included in above) 1.7% Weighte