Gpt Group · ASX:GPT
Gpt — The GPT Group — H1 2024 Earnings Presentation
31 slides from Gpt's earnings presentation, 2024
Slide 1: 2024 Interim Result Market Briefing
Experience First 2024 Interim Result GPT – 2024 INTERIM RESULT PRESENTATION Market Briefing 1
Slide 2: Agenda
Agenda GPT acknowledges the Traditional Custodians of the lands on which our business operates. We pay our respects to Elders past, present and emerging; and to their knowledge, leadership and connections. We honour our responsibility for Country, culture and community in the places we create and ho
Slide 3: 2024 Interim Result Highlights
2024 Interim Result Highlights Group Returns Real Estate Portfolio $309.1m 16.14c Management Platform - $34.4b AUM Investment Portfolio1 ($b) Funds Total Funds From Operations Funds From Operations Management2($b) ($b) Sectors Balance Sheet (+ Co-investments) per security Retail 4.8 (+0.8) 8.9 13.7
Slide 4: The GPT platform
The GPT platform 2-year FUM CAGR of 26% Funds Under Management bringing our Funds Under Management Jun-24 to $22.1b at the half year $22.1b Jun-23 $19.0b Jun-22 $13.9b Wholesale funds Partnership Mandates Management Platform - $34.4b AUM Investment Portfolio - $14.7b Funds Management - $22.1b2 Balan
Slide 5: Our ambition
Our ambition Position GPT to become Our execution strategy is underpinned by four Build upon Enduring value Australia’s leading fundamental elements existing creation foundations diversified real estate Investment proficiency investment manager, Exceptional operational capability is core to GPT’s an
Slide 6: Implementation plan
Implementation plan 2024 Priorities Clarify and embed strategy Focus Areas Align operational capability to support strategic growth areas Source Growth Capital Platform Performance Enhance Active Management Position GPT as an active investment partner across existing funds and partnerships • Initial
Slide 7: Integrated ESG strategy
Integrated ESG strategy 100% $2.3b #2 Owned and managed Retail of Sustainable financing Ranked REIT in S&P Global and Office Investment and /or Green debt across Corporate Sustainability Portfolio assets operating on the Management Platform Assessment 2024 Yearbook a carbon neutral basis1 Global Rep
Slide 8: Financials
Experience First GPT – 2024 INTERIM RESULT PRESENTATION Financials 8
Slide 9: 1H 2024 earnings drivers
1H 2024 earnings drivers FFO composition Direct property investments | 77.0% Trading profits Retail 0.8% 30.8% Management operations 9.7% Office Co-investment earnings 23.9% 12.5% Logistics 22.3% Direct property Co-investment Management investments earnings operations 77.0% of FFO 12.5% of FFO 9.7%
Slide 10: Investment Portfolio valuation metrics
Investment Portfolio valuation metrics 2024 Valuation movement Capitalisation Rate Discount Rate Investment Portfolio Total Return1 6 months to 30 June 2024 Movement since Dec 2023 Movement since Dec 2023 12 months to 30 June 2024 Total Investment Portfolio Retail (1.5%) 0.8% -$566.8m $41.7m 5.44% 6
Slide 11: Segment result
Segment result • Retail portfolio income growth driven by rent ($m) 1H 2024 1H 2023 Change reviews, positive leasing spreads and higher Investment Portfolio turnover rent Retail 137.7 131.8 4.5% • Slight decline in Office portfolio income from Office 107.0 107.6 (0.6%) delayed lease commencements pa
Slide 12: Strong financial position
Strong financial position Key Statistics Jun 2024 Comments Debt maturity profile ` 1,600 ` Undrawn Bank Facilities Within stated range of Drawn Bank Facilities Net gearing 29.6% 25%-35% and material 1,400 Medium Term Notes headroom to 50% covenant 1,200 US Private Placements CPI Bonds 1,000 No unfun
Slide 13: Retail
Experience First GPT – 2024 INTERIM RESULT PRESENTATION Retail 13
Slide 14: GPT Retail platform
GPT Retail platform Retail assets under management Investment portfolio results 17 $4.8b GPT $4.8b Owned or managed assets $13.7b Balance Sheet portfolio GWSCF $3.5b ($5.6b including $0.8b (GPT 28.5% equity interest) co-investment in GWSCF) $11.5b Moving Annual Turnover (MAT) Mandates $5.4b $183.8m
Slide 15: Leasing and occupancy
Leasing and occupancy 271 99.6% 3.9 years Deals completed Portfolio occupancy Weighted average lease (Jun 2023: 343) (Dec 2023: 99.8%) expiry (Dec 2023: 3.9 years) Total Specialty leasing metrics (Deals completed) Occupancy & Leasing Spreads 1H 2024 1H 2023 100% 10% Average annual fixed increase 4.9
Slide 16: Centre sales performance
Centre sales performance • Sales growth remains positive over the period compared to 1H 2023 up 4.0% • Continued growth in General Retail, Food Retail, Leisure and Health & Beauty • Specialty productivity of $13,052 psm up 2.3% on June 2023 Sales growth by category – 1H 2024 vs 1H 2023 Sales growth
Slide 17: Portfolio growth drivers
Portfolio growth drivers • Portfolio outperformance in Total Centre sales relative to ABS retail sales over 1H 2024 • Limited new supply of Gross Lettable Area (GLA) underpins strong rental levels and retailer demand — Specialty retailers expanding store footprints (~120sqm-200sqm) in regional centr
Slide 18: Office
Experience First GPT – 2024 INTERIM RESULT PRESENTATION Office 18
Slide 19: GPT Office platform
GPT Office platform Office assets under management Investment portfolio results Mandates $2.7b 32 $3.7b $14.9b Owned or managed assets Balance Sheet portfolio GPT $3.7b ($5.0b including $1.3b co-investment in GWOF) 1.26m sqm NLA GWOF $8.5b $158.3m (GPT equity interest 21.7%) Segment contribution3, d
Slide 20: Leasing and occupancy
Leasing and occupancy 80,700sqm 92.4% 4.9 years Total leasing1 (incl. HoA), 78 deals Portfolio occupancy (incl. HoA) Weighted average lease expiry (incl. HoA) (Jun 2023: 42,400sqm, 65 deals) (Dec 2023: 92.3%) (Dec 2023: 4.7 years) Leasing metrics on deals completed Lease renewal outcomes Based on sq
Slide 21: Leasing performance and expiries
Leasing performance and expiries Key leasing Lease expiry profile3 Tenancy Area1 Term Asset (levels) (sqm) (years) 111 Eagle St, Brisbane Confidential 7,500 6 51 Flinders Ln, Melbourne L4-9 4,500 10 Canberra Brisbane Melbourne Central Tower, Melbourne L3-5 4,400 8 Sydney Metro & Parramatta Melbourne
Slide 22: Portfolio growth drivers
Portfolio growth drivers • 100% Prime Grade Investment Portfolio1 concentrated on the eastern seaboard benefitting from a large share of leasing activity, with 92.4% occupancy • 75% of operating assets in the Investment Portfolio are new or refurbished since 2012, providing modern, appealing amenity
Slide 23: Logistics
Experience First GPT – 2024 INTERIM RESULT PRESENTATION Logistics 23
Slide 24: GPT Logistics platform
GPT Logistics platform Logistics assets under management Investment portfolio results 71 GPT $3.8b $3.8b $4.6b Owned or managed assets Balance Sheet portfolio ($4.1b including $0.3b co-investment in GQLT) 1.36m sqm GLA GQLT $0.6b (GPT equity interest 50.1%) $104.8m Mandates $0.3b Segment contributio
Slide 25: Leasing and occupancy
Leasing and occupancy 62,400 sqm 99.4% 5.4 years 36% Total leasing (incl. HoA) Portfolio occupancy (incl. HoA) Weighted average lease expiry Average leasing spread (Jun 2023: 85,600sqm) (Dec 2023: 99.5%) (incl. HoA) (Dec 2023: 5.4 years) (Dec 2023: 39%) • Quality tenant covenants with >70% of income
Slide 26: Development pipeline
Development pipeline • Progressing milestones across the >$3b Yiribana East Logistics Estate, Kemps Creek, NSW | Indicative Master Plan development pipeline1, inclusive of UniSuper’s >$1b Deer Park project in Melbourne • Pipeline ~90% weighted to Sydney and Melbourne • Commencing projects at Kemps C
Slide 27: Portfolio growth drivers
Portfolio growth drivers • Logistics sector underpinned by customer supply chain requirements, population growth and e-commerce • Market vacancy of 1.9% nationally and current enquiry expected to convert into increased take-up in 2H 2024 • GPT portfolio dominated by modern assets located in Sydney a
Slide 28: Outlook and 2024 Guidance
Experience First Outlook and GPT – 2024 INTERIM RESULT PRESENTATION 2024 Guidance 28
Slide 29: Outlook and 2024 guidance
Outlook and 2024 guidance Outlook • Improving market conditions in terms of transaction activity and capital mobility • GPT is well positioned with a premium multi- sector portfolio, complemented by a conservative capital profile and deep operational experience • Active pursuit of strategy to optimi
Slide 30: Thank you for joining us
Experience First Thank you for joining us Questions GPT – 2024 INTERIM RESULT PRESENTATION 30
Slide 31: Disclaimer
Disclaimer This Presentation (Presentation) has been prepared by The GPT Group comprising GPT RE To the maximum extent permitted by law, The GPT Group, its related companies, officers, Limited (ACN 107 426 504; AFSL 286511), as responsible entity of the General Property Trust, and employees and agen