Gdi Property Group · ASX:GDI
Gdi Property — H1 FY2020 Earnings Presentation
27 slides from Gdi Property's earnings presentation, Feb 24, 2020
Slide 1: GDI Property Group Half year results presentation
For personal use only GDI PROPERTY GROUP Half year results presentation 24 February 2020
Slide 2: Disclaimer
Disclaimer This presentation has been prepared and issued by GDI Property Group Limited (ACN 166 479 189) and GDI Funds Management Limited (ABN 34 107 354 003, AFSL Number 253 142) as responsible entity of GDI Property Trust (ARSN 166 598 161). Shares in GDI Property Group Limited are stapled to uni
Slide 3: Introduction
Introduction NTA1 per security of $1. 32 For personal use only of $0.06 on 30 June 2019 NTA per security of $1.26 Valuation gains at Westralia Square (+$31.0 million) and Mill Green ($+13.0 million) FFO2,3 of 4.397 cents per security Payout ratio of 88% of FFO and 114% of AFFO Distribution of 3.875
Slide 4: Significant progress in first half
Significant progress in first half Westralia Square leasing Acquisition of 180 Hay Street, Perth For personal use only Leased 14,522sqm of lower level accommodation for 5 and 6 years to Exchanged a conditional1 contract to acquire 180 Hay Street, Perth, for Minister for Works $12.59 million 12,689sq
Slide 5: Significant progress in first half
Significant progress in first half GDI No. 46 Property Trust Major Perth development opportunities For personal use only Purchased a $98.0 million portfolio of 17 metropolitan Perth properties 1 Mill Street (Portfolio) occupied by high profile car dealerships and service centres No response from WAP
Slide 6: Contributors to FFO and AFFO
Contributors to FFO and AFFO Property Division FFO marginally higher than previous corresponding Dec 19 Dec 18 period For personal use only $’000 $’000 Property Division FFO does not include any return from the asset held Property Division FFO 27,033 26,525 by GDI No. 42 Office Trust (235 Stanley St
Slide 7: Balance sheet remains in a strong position
Balance sheet remains in a strong position Dec-19 Jun-19 Pro forma for post balance sheet events $'000 $'000 For personal use only Current assets Cash and cash equivalents 13,719 18,775 Trade and other receivables 3,321 2,819 Non-current assets held for sale 102,268 - Other assets 15,878 2,574 GDI N
Slide 8: Debt profile and interest rate hedging
Debt profile and interest rate hedging As at 30 June 2019, drawn debt on the Principal Facility of $71.0 million Board hedging policy gives management more flexibility around hedging, particularly when drawn debt is <$100.0 million For personal use only Undrawn debt of $64.0 million to fund working
Slide 9: Perth market
Elizabeth Quay Treasury 8 Exchange Plaza St Martins Tower Allendale Square BCG Centre 100 SGT 108 SGT Quadrant 140 SGT Brookfield Place 2 Convention Centre BHP Alluvion Forrest Centre 225 SGT 240 St Georges Terrace Bishop C Perth market LINKING EQUITY TO PERFORMANCE QV1 (Chevron) New Woodside For pe
Slide 10: Perth market
Perth market GDP growth and population growth, 2019 to 2028 Overall Investment Pipeline by State 2.0% 140 Queensland Western Australia 4 For personal use only Victoria 120 1.6% 100 17.6 New South Wales AUD Billions 80 1.2% Population Growth 39.3 1.7 60 125 0.8% 27.5 40 75.5 47.2 2.2 20 0.4% South Au
Slide 11: Westralia Square
Westralia Square Signed two leases with Minister for Works over 14,522sqm Key metrics as at: Dec-19 Jun-19 of the lower levels (1-5, 8,9 and 10) For personal use only 12,689sqm to WAPOL for 5 years1 commencing 1 Independent valuation date Dec-19 Jun-19 February 2021 Independent valuation ($M) 316.00
Slide 12: Westralia Square – stack plan
Westralia Square – stack plan For personal use only LVL 17,18 Vacant – UGL departed 5 January 2020 – Commenced refurbishment works Existing leases varied to facilitate WAPOL’s relocation in the building. LVL 11-16 Will become vacant during FY21 LVL 10 BDM – New 6-year lease commencing 1 February 202
Slide 13: WS2
WS2 Having reviewed allowable plot ratio for a new development on excess land at Westralia Square (WS2), have increased the size of the proposed scheme to approximately 9,130sqm of NLA over 11 floors For personal use only Scheme requires the precincts adjoining owners’ consent to lodge a DA Adjoinin
Slide 14: St Georges Terrace, Perth
197 St Georges Terrace, Perth Occupancy stable since June 2019 Key metrics as at: Dec-19 Jun-19 For personal use only former Chevron training rooms (ground and mezzanine) Independent valuation date Dec-19 Dec-18 being operated as conference facilities by existing tenant, but shown as vacant in prope
Slide 15: Mill Street, Perth
5 Mill Street, Perth Occupancy decreased from 89% at June 2019 to 85% at Key metrics as at: Dec-19 Jun-19 31 December 2019, largely as a result of Accenture For personal use only Australia Pty Limited’s departure (603sqm) Independent valuation date Dec-19 Dec-18 New full floor naming rights tenant (
Slide 16: Mill Street, Perth
1 Mill Street, Perth Key metrics as at : Dec-19 Jun-19 For personal use only Independent valuation date Dec-19 Dec-18 Independent valuation ($M) 33.50 30.50 Independent valuation /NLA ($) 5,038 4,587 Carrying value ($M) 33.50 30.54 Capitalisation rate (%) 7.75 8.00 Discount rate (%) 7.50 8.25 NLA (s
Slide 17: Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise Capital expenditure program now complete Key metrics as at: Jun-19 Jun-19 For personal use only Occupancy increased to 97% with only three vacant suites Independent valuation date Dec-18 Dec-18 Undertook a sales campaign during the year and the asset has subsequent
Slide 18: Stanley Street, Townsville
235 Stanley Street, Townsville Department of Human Services has agreed to a new six Key metrics as at: Dec-19 Jun-19 year lease commencing 1 March 2020 for 4,644sqm, For personal use only being its current lease (2,322sqm) plus the area it Independent valuation date Jun-19 Jun-19 subleases from the
Slide 19: Funds Management business
Funds Management business Funds Management business FFO of $2.0 million ($2.6 million previous corresponding period) For personal use only $0.8 million from distributions received from GDI No. 42 Office Trust Minimal transactional fees Highlight was securing 17 metropolitan Perth properties for $98.
Slide 20: Funds Management business
Funds Management business GDI No. 27 Total Return Fund GDI No. 38 Diversified Property Trust All assets now sold Originally a seven asset portfolio purchased from Underperforming fund, but an investor IRR of UGL on a sale and leaseback basis with four of For personal use only approximately 3.75% tho
Slide 21: Distribution policy
Distribution policy GDI aims to deliver a consistent 12.0% p.a. total return, measured both Distribution vs FFO vs AFFO annually and on a three year rolling basis For personal use only Total return is measured as NTA growth + distributions 60.0 In theory, the total return could be either all distrib
Slide 22: Why GDI?
Why GDI? • Delivered an annualised total return since listing of 15.79% p.a. For personal use only Total return focused • This return has been largely crystallised and reinvested • Demonstrated restraint • Market capitalisation of +/- $800 million Size matters • Large enough to secure outstanding op
Slide 23: Appendix
For personal use only APPENDIX LINKING EQUITY 235 STANLEY TO PERFORMANCE STREET, TOWNSVILLE 22
Slide 24: Profit or Loss
Profit or Loss GDI Trust 2019 2018 2019 2018 For personal use only $'000 $'000 $'000 $'000 Revenue from ordinary activities Property income 35,103 37,751 35,123 37,771 Funds management income 1,064 1,144 - - Interest revenue 45 111 40 105 Other income - 928 - 928 Total revenue from ordinary activiti
Slide 25: NPAT to AFFO
NPAT to AFFO GDI For personal use only 31 December 2019 31 December 2018 $'000 $'000 Total comprehensive income for the period 59,546 39,489 Acquisition expenses and discontinued acquisition - 7 Contribution resulting from consolidation of GDI No. 42 Office Trust (2,297) (4,211) Distributions / fund
Slide 26: Property by property information
Property by property information Dec 19 Dec 18 Dec 19 For personal use only $m $m $m Property Incentives and Capex Maintenance Lease AIFRS NPI1 FFO AIFRS NPI1 FFO spent Capex spent costs 1 Mill Street - - - 5 Mill Street - 0.6 0.8 197 St Georges Terrace - 1.5 0.9 Mill Green, Perth 7.6 10.0 8.3 9.6 -
Slide 27: For personal use only
For personal use only LINKING EQUITY TO PERFORMANCE 26