Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — H1 FY2016 Earnings Presentation
44 slides from Growthpoint Properties Australia's earnings presentation, Feb 22, 2016
Slide 1: Half Year Results Presentation
Growthpoint Properties Australia (ASX Code: GOZ) Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409 www.growthpoint.com.au For personal use only Half Year Results Presentation For the six months ended 31 December 2015 22 Fe
Slide 2: Important information
Important information This presentation and its appendices (“Presentation”) is dated S-X of the rules and regulations of the U.S. Securities and Exchange guidance on future earnings or financial position and estimates are For personal use only 22 February 2016 and has been prepared by Growthpoint Pr
Slide 3: Contents
Contents Executive For personal use only Management Team Overview 4 Distributions and security price 25 Highlights of HY16 5 Relative forecast income yields 26 Property Portfolio 6 Summary 27 Key Metrics 7 Conclusion 28 Revaluations 8 Focus for the year ahead 29 Leasing 9 Appendices 30 Office Acquis
Slide 4: Overview
Overview For personal use only –– Quality property portfolio providing growing income stream –– Pure landlord –– Same executive management team since 2009 –– 20.5 cps FY16 distribution guidance –– At least 21.3 cps FY16 distributable income guidance Timothy Collyer Managing Director 1-3 Pope Court,
Slide 5: Highlights of HY16
Highlights of HY16 For personal use only Property issuance for seven years at all-in cost Portfolio lease expiry profile (%) of 4.46% p.a. per financial year • Significant leasing success with over • 20.7% return on equity for CY151 100 38,325 square metres of new and 80 renewed leases undertaken in
Slide 6: Property Portfolio
Property Portfolio For personal use only –– $2.6 billion property portfolio 10.1% increase from 30 June 2015 –– 6.6 year WALE –– 7.1% weighted average cap rate –– $173.9 million annual rental income –– 7.6% increase in net property income Michael Green Head of Property Building C, 211 Wellington Roa
Slide 7: Property Portfolio: Key Metrics
Property Portfolio: Key Metrics For personal use only As at 31 December 2015 Industrial Office1 Total Number of properties no. 38 19 57 Total value $m 1,222.5 1,389.0 2,611.5 % of portfolio value % 47 53 100 Occupancy % 100 95 97 Like-for-like value change HY16 $m / % of asset value 15.5 / 1.3 61.5
Slide 8: Property Portfolio: Revaluations
Property Portfolio: Revaluations For personal use only • Property portfolio valued at $2.6 billion following $162.0 million of acquisitions and net valuation increase • Value increase attributable to revaluations, on a like-for-like basis (excluding FY16 acquisitions), was $77.0 million in HY16; a 3
Slide 9: Property Portfolio: Leasing
Property Portfolio: Leasing Leases completed in HY16 For personal use only Address Sector Tenant Start date Term NLA Car Annual rent (yrs) (sqm) Parks increases (%) A1, 32 Cordelia Street South Brisbane QLD Office Jacobs Group (Australia) Q4, FY15 11.41 6,896 50 Fixed 3.75% A1, 32 Cordelia Street So
Slide 10: Office Acquisitions - HY16
Office Acquisitions - HY16 For personal use only Building C, 255 London Circuit, 211 Wellington Rd, Canberra ACT Mulgrave VIC • 100% leased to the • Fund-through development Commonwealth of expected to complete late Australia represented by 2016 the Department of Foreign Affairs and Trade (DFAT) • D
Slide 11: Industrial Acquisitions - HY16
Industrial Acquisitions - HY16 For personal use only 1-3 Pope Court, 34 Reddalls Rd, Beverley SA Kembla Grange NSW • Newly Constructed 14,459 • 14.1 hectare property square metre warehouse primarily comprised of on 25,660 square metres of an asphalt car park with land extensive hail mesh • The wareh
Slide 12: Case study: Charles Street, Parramatta, NSW
Case study: 1 Charles Street, Parramatta, NSW For personal use only Growthpoint acquired 1 Charles Street in June 2014 in the expectation that the property 1 Charles Street, Book value: Lettable area: value would rise (yields lower) due to: Parramatta, NSW $277.5m 32,314m2 • growing demand for quali
Slide 13: Property Portfolio: Summary
Property Portfolio: Summary For personal use only • Significant leasing success with 38,325 square metres of new and renewed leases undertaken in HY16 • A further 1,300 square metres of leasing undertaken since 31 December 2015 at 333 Ann Street, Brisbane • $162.0 million of new property acquisition
Slide 14: Financial Management
Financial Management For personal use only –– NTA per security of $2.60 at 31 December 2015 up 4.8% since 30 June 2015 –– Gearing at 37.6% –– $1.38 billion debt facilities –– Operating costs 0.4% of gross assets Dion Andrews Chief Financial Officer Building 2, 572-576 Swan Street, Richmond, VIC
Slide 15: Financial results
Financial results For personal use only HY16 HY15 Change % Change Statutory accounting profit $'000 125,818 141,824 (16,006) (11.3) Statutory accounting profit per stapled security ¢ 22.1 25.6 (3.5) (13.7) Distributable income $'000 61,024 56,739 4,285 7.6 Distributable income per stapled security ¢
Slide 16: Movements in net tangible assets
Movements in net tangible assets For personal use only Movements in net tangible assets per stapled security $2.65 $2.60 $2.55 $2.50 $2.45 $2.40 30 Jun 15 Property SWAP Equity raising 31 Dec 15 revaluations revaluations & retained earnings $2.48 +0.111 – 0.001 +0.010 $2.60 • 4.8% increase in NTA per
Slide 17: Debt Management: Gearing
Debt Management: Gearing For personal use only Reduction in Gearing and cost of debt as at month end 65% 8.5% 60% 8.0% Balance sheet gearing 55% 7.5% All-in cost of debt 50% 7.0% 45% 6.5% 40% 6.0% 35% 5.5% 30% 5.0% 25% 4.5% Jun 2010 Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun 2015 Dec 2015 Balance sheet
Slide 18: Debt Management: Interest rate hedging
Debt Management: Interest rate hedging For personal use only Interest Rate Hedging $60m $50m $40m $30m $20m $10m Weighted average 0 Time to maturity (yrs) 2.5 3.1 3.1 3.8 4.5 4.5 5.0 5.5 3.9yrs Fixed Rate (%) 3.20 3.57 3.55 3.70 2.36 2.36 2.42 2.48 3.06% Maturity date Jul 18 Jan 19 Jan 19 Nov 19 Jun
Slide 19: Operating and capital expenses
Operating and capital expenses For personal use only Operating expenses CY15 CY14 Change %Change Total operating expenses $’000 9,672 8,677 995 11.5 Average gross asset value $’000 2,385,140 2,011,095 374,045 18.6 Operating expenses to average gross assets % 0.41 0.43 N/A (0.02) Capital expenditure
Slide 20: Financial results: Summary
Financial results: Summary For personal use only • 4.8% increase in NTA per stapled security • $250 million debt capital markets issuance for seven years at all-in cost of 4.46% p.a. • 20.7% return on equity for CY15 • Moody’s confirmed Baa2 rating with a stable outlook on senior secured debt WorldP
Slide 21: Strategy & performance
Strategy & performance For personal use only –– 18.1% p.a. total Securityholder return over five years –– 16.7% total return for CY15 –– Market capitalisation of $1.8 billion –– Distributions increased by average of 3.9% p.a. over five years Aaron Hockly Chief Operating Officer 1 Charles Street, Par
Slide 22: FY16 Goals
FY16 Goals For personal use only 1. Increase distributions to 3. Existing property assets 4. Increase liquidity and Securityholders enhanced value of Growthpoint’s • Distributions growing each distribution • Leasing of vacant space and leasing or securities period renewal of potential lease expiries
Slide 23: Equity capital
Equity capital Growthpoint For personal use only Securityholders* Key achievements As at 31 December 2015 • Market capitalisation increased over 12 months to 31 December 2015 from $1.5 billion to $1.8 billion • Will raise $40,132,194.121 from February 2016 distribution at an GRT 65.0% Institutional
Slide 24: Total Securityholder returns
Total Securityholder returns For personal use only Total Securityholder return Total Securityholder return comparison comparison year to 31 December 20151 per annum, over five years to 31 December 20151 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0 0 GOZ A-REIT2 Shares3 GOZ A-REIT2 Shares3 16.7% 14.4% 2.8
Slide 25: Distributions and security price
Distributions and security price For personal use only Distributions Security Price per stapled security as at 31 December 22¢ $3.20 $3.00 20¢ $2.80 18¢ $2.60 16¢ $2.40 $2.20 14¢ $2.00 12¢ $1.80 10¢ $1.60 FY12 FY13 FY14 FY15 FY161 2011 2012 2013 2014 2015 17.6¢ 18.3¢ 19.0¢ 19.7¢ 20.5¢1 $1.93 $2.21 $
Slide 26: Relative forecast income yields
Relative forecast income yields to 30 June 2016 For personal use only 7% 6% 5% 4% 3% 2% 1% 0% GOZ A-REIT A-REIT Australian Commonwealth Inflation6 distribution distribution distribution Shares Government yield1 yield2 yield (ex WFD)3 distribution yield4 10 year bond5 6.7% 5.0% 5.3% 5.0% 2.9% 1.7% 1.
Slide 27: Strategy and performance: summary
Strategy and performance: summary For personal use only • 16.7% total Securityholder return for CY15 • HY16 distribution guidance of 10.2 cps achieved, 20.5 cps forecast for FY16 • FY16 distributable income expected to be at least 21.3 cps • Establishment of sustainability framework underway, key ar
Slide 28: Conclusion
For personal use only Conclusion A4, 52 Merivale St, South Brisbane, QLD
Slide 29: Focus for the year ahead
Focus for the year ahead For personal use only Property portfolio Financial management Strategy & performance • Leasing existing vacancies and • Maintenance of operating costs at or • Consideration of M&A opportunities potential expiries over next two years below 0.4% of gross assets • Engagement wi
Slide 30: Appendices
For personal use only Appendices A1, 32 Cordelia St, South Brisbane, QLD
Slide 31: Appendix 1: Growthpoint Properties Limited (GRT) - South Africa
Appendix 1: Growthpoint Properties Limited (GRT) - South Africa1 For personal use only Growthpoint Properties Limited of South Africa (”GRT”) owns 65% of the securities of Key Facts Growthpoint (at 31 December 2015) and is Growthpoint’s major Securityholder. Listing GRT is listed on the Johannesburg
Slide 32: Appendix 2: 2016 Securityholder calendar
Appendix 2: 2016 Securityholder calendar* For personal use only 22 February 22 August • Results for the half year ended • Results for the year ended 30 June 2016 31 December 2015 announced to ASX announced to ASX 29 February 31 August • Distribution paid for the half year ended • Distribution paid f
Slide 33: Appendix 3: Distributable income
Appendix 3: Distributable income For personal use only Reconciliation from statutory profit to distributable income HY16 HY15 Change Change $’000 $’000 $’000 % Profit after tax 125,818 141,824 (16,006) (11.3) Less non-distributable items: - Straight line adjustment to property revenue (2,140) (3,614
Slide 34: Appendix 3: Distributable income (cont.)
Appendix 3: Distributable income (cont.) For personal use only Components of distributable income HY16 HY15 Change Change $’000 $’000 $’000 % Property income 100,422 98,077 2,345 2.4 Property expenses (13,029) (12,723) (306) 2.4 Net property income 87,393 85,354 2,039 2.4 Interest income 315 425 (11
Slide 35: Appendix 4: Financial position
Appendix 4: Financial position For personal use only as at 31 Dec 2015 as at 30 Jun 2015 $’000 $’000 Assets Cash and cash equivalents 40,127 26,858 Investment properties 2,567,658 2,343,840 Other assets 42,677 36,449 Total assets 2,650,462 2,407,147 Liabilities Borrowings 995,308 890,445 Distributio
Slide 36: Appendix 5: Property portfolio - diversity of income and assets
Appendix 5: Property portfolio - diversity of income and assets For personal use only Sector diversity (%) Top ten Tenants Key Metrics by property value by passing rent as at 31 December 2015 As at 31 December 2015 as at 31 December 2015 % WALE Industrial Office1 Total (yrs) Total / average value ($
Slide 37: Appendix 6: Top five office properties by value
Appendix 6: Top five office properties/property groupings by value For personal use only Brisbane 1 CBD SW1 Office Complex, South Brisbane, QLD Combined Book Value: WALE: property $297.5m 6.5 yrs The four SW1 Office buildings, together with the underground car park, occupy a prime corner site statis
Slide 38: Appendix 6: Top five office properties by value (cont)
Appendix 6: Top five office properties/property groupings by value (cont) For personal use only 2 3 GE Buildings, Combined Book Value: Melbourne property $135.8m CBD Richmond, VIC statistics Cap Rate: 2 M2 Growthpoint’s three office buildings 3 7.29% in Richmond, Victoria offer significant WALE: M4
Slide 39: Appendix 6: Top five office properties by value (cont)
Appendix 6: Top five office properties/property groupings by value (cont) For personal use only 4 5 5KM M2 5 2 4 Brisbane M4 CBD M1 M3 Sydney M7 Bldg C, Gore Hill Tech Park, 1KM CBD 1231-1241 Sandgate Road, M5 219-247 Pacific Highway, Nundah, QLD M1 Artarmon, NSW Eight-level office building with Bld
Slide 40: Appendix 7: Top five industrial properties by value
Appendix 7: Top five industrial properties / property groups by value For personal use only 1 2 5KM Perth Brisbane CBD CBD M1 2 M3 M7 M5 70 Distribution Street, 1 20 Colquhoun Road, Larapinta, QLD M1 Perth Airport, WA 2KM Distribution Centre comprising This property is a Woolworths temperature-contr
Slide 41: Appendix 7: Top five industrial properties by value (cont)
Appendix 7: Top five industrial properties / property groups by value (cont) For personal use only 3 4 2KM Linfox Properties, Combined Book Value: property $134.0m M2 Erskine Park, NSW 3 10KM statistics M4 Sydney Cap Rate: M7 CBD 4 Three separate properties comprising 6.33% a modern warehouse, a tru
Slide 42: Appendix 7: Top five industrial properties by value (cont)
Appendix 7: Top five industrial properties / property groups by value (cont) For personal use only 5 5 HU ME FRE EW AY M31 Wodonga 28 Bilston Drive, Wodonga, VIC 2KM A distribution facility comprising two level office, temperature 28 Bilston Drive, Wodonga: Wodonga controlled / part ambient is the f
Slide 43: Glossary
Glossary For personal use only A-REIT Australian Real Estate Investment Trust Growthpoint SA Growthpoint Properties Limited of South Africa (Growthpoint’s ASX Australian Securities Exchange or GRT majority Securityholder) which trades on the JSE under the code “GRT” B billion HY11, HY12, the six mon
Slide 44: For more information contact us at:
For more information contact us at: Email: info@growthpoint.com.au Investor services line: 1800 260 453 For personal use only www.growthpoint.com.au Growthpoint Properties Australia Level 22, 357 Collins Street Melbourne VIC 3000 Thank you Growthpoint Properties Australia Half Year Results Presentat
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