Slide 1: Results for the year ended 30 June 2011
Goodman Group Results for the year ended 30 June 2011+ For personal use only 18 August 2011 building momentum + delivering opportunities
Slide 2: Important notice and disclaimer
Important notice and disclaimer For personal use only + This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL Number 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839)). Th
Slide 3: Contents
Contents For personal use only + Section 1 Highlights + Section 2 Results overview + Section 3 Operational performance + Section 4 Outlook and summary + Appendices – Results analysis – Investment – Development – Management – Capital management 3
Slide 4: Section 1 Highlights
For personal use only Section 1+ Highlights M7 Business Hub, Australia 4
Slide 5: Highlights
Highlights For personal use only + Focused strategy delivering: – Operating profit after tax of $384 million up 24% on FY2010 – Fully diluted operating EPS of 5.661 cents up 8% on FY2010 – Statutory accounting profit of $392 million – including revaluations and other non-operating items – Distributi
Slide 6: Highlights
Highlights For personal use only + Occupancy increased to 96% (93% at June 2010) Own + Retention at 76% and WALE of 5.3 years + Leased ~1.9 million sqm across the Group and managed funds platform, generating a reversion of +2.3% + Development activity across all core markets providing global diversi
Slide 7: Section 2 Results overview
For personal use only Section 2+ Results overview Andover Business Park, UK 7
Slide 8: Results overview
Results overview For personal use only + Underlying fundamentals robust across all business FY2011 activities: Operating earnings ($M) 383.9 1 – Operating performance above guidance Operating earnings per security (cents) 5.77 Operating earnings per security (fully diluted) 5.66 – Credit metrics and
Slide 9: FY2011 results – profit and loss
FY2011 results – profit and loss For personal use only 30 June 2011 income statement + Full year operating profit of $383.9 million FY2010 FY2011 $M $M – Statutory profit of $392.0 million due to stabilising Investment (look through) 448.5 443.2 valuations Management 53.7 62.6 Development 41.7 121.6
Slide 10: FY11 results – balance sheet
FY11 results – balance sheet For personal use only + Strong balance sheet maintained through prudent 30 June 2011 balance sheet capital management initiatives 30 Jun 2010 30 Jun 2011 $M $M – Actively recycling development holdings, third party capital Stabilised assets 2,310 2,409 utilisation and mo
Slide 11: Group liquidity position
Group liquidity position For personal use only + Cash and available lines of credit of $1,301.3 million: – $227.8 million available cash – $1,073.5 million available lines + Headline gearing reduced to 23.0% + Average debt maturity profile of 5.6 years + ICR increased to 4.5x (2.6x look through) + S
Slide 12: Section 3 Operational performance
For personal use only Section 3+ Operational performance Highbrook Business Park, New Zealand 12
Slide 13: Investment
Investment For personal use only + Property fundamentals remain robust reflecting Investment ($m) FY10 FY11 quality of the portfolio and customers: Direct 176.4 166.6 – Occupancy increased to 96% (93% at June 2010) Fund cornerstones 272.1 276.6 – Retention rate at 76% Look through EBITDA 448.5 443.2
Slide 14: Development
Development For personal use only + Development demand driven by shortage of Development ($M) FY10 FY11 prime assets: Net revenue 72.7 157.6 – WIP increased to $1.8 billion (from $1.3 billion as at 30 EBITDA 41.7 121.6 June 2010) Key metrics FY10 FY11 + Prudent low risk strategy focused on pre-sold
Slide 15: Development
Development For personal use only + 5 year average development workbook running at ~A$2 billion + Disciplined approach to prime developments with appropriate risk/returns Australia + New Zealand Continental Europe + 41 development sites + 29 development sites + 2.6m sqm of developable GLA + 1.6m sqm
Slide 16: Management
Management For personal use only + $14.4 billion of external assets under management, up Management ($M) FY2010 FY2011 14% (22% on a constant currency basis): Fund management fees 69.8 64.1 – IIF business fully integrated Property service fees 55.8 56.9 – Ability to pursue large scale transactions l
Slide 17: Management - AUM
Management - AUM For personal use only + Major new initiatives during the year: – Completed €300 million GELF capital raising – Successful privatisation of IIF and launch of Goodman Trust Australia – Sale of Goodman’s 50% interest in Interlink to CPPIB – GAIF inaugural $175 million Australian Medium
Slide 18: Management platform
Management platform For personal use only Goodman’s six largest funds GAIF GTA GELF ABPP GHKLF GMT1 Total assets $4.3bn $2.6bn $2.0bn $1.9bn $1.5bn $1.2bn GMG co-investment 43.7% 19.9% 27.9% 35.7% 20.0% 16.7%2 GMG co-investment $1.1bn $0.3bn $0.3bn $0.3bn $0.2bn $0.1bn2 Number of properties 106 61 8
Slide 19: Section 4 Outlook and summary
For personal use only Section 4+ Outlook and summary Keylink Industrial Estate, Australia 19
Slide 20: Outlook and summary
Outlook and summary For personal use only + Maintain position as a leading industrial property and business partner in all the markets we operate in + Focus on higher and better use to maximise returns Own + Recycle assets on balance sheet and within managed funds + Pro-rata equity in funds trending
Slide 21: Appendix 1 Results analysis
For personal use only Appendix 1+ Results analysis Interlink, Hong Kong 21
Slide 22: Profit and loss
For personal use only Profit and loss 22
Slide 23: Profit and loss (cont)
Profit and loss (cont) For personal use only GMG results Year ended Year ended Increase / 30 Jun 2010 30 Jun 2011 (decrease) $M $M $M Property investment1 329.2 329.5 0.3 Management services 108.3 104.6 (3.7) Development 72.7 157.6 84.9 Operating revenue net of property expenses 510.2 591.7 81.5 Unr
Slide 24: Profit and loss (cont)
Profit and loss (cont) For personal use only + Total income by business segment for year ended 30 June 2011 Category Total Investment Management Development Unallocated Non- operating items1 $M $M $M $M $M $M Gross property income 225.1 225.2 (0.1) Fund management income 64.0 63.9 0.1 Property servi
Slide 25: Profit and loss (cont)
Profit and loss (cont) For personal use only Category Total Investment Management Development Unallocated Non- operating items1 $M $M $M $M $M $M EBIT – per statutory accounts 411.4 329.5 62.6 121.6 (43.1) (59.2) Net loss from fair value adjustments on investment 26.4 26.4 properties Share of net ga
Slide 26: Reconciliation non-operating items
Reconciliation non-operating items For personal use only Non-operating items in statutory profit and loss 30 Jun 2011 Notes $M $M Property valuation Net (loss) from fair value adjustments on investment properties (26.4) Share of net gain from fair value adjustments on investment properties in associ
Slide 27: Financial position
Financial position For personal use only + Headline gearing of 23.0% As at 30 June 2011 Direct Investments Developments Other Total assets $M $M $M $M $M Cash 227.8 227.8 Receivables 21.1 205.2 186.2 412.5 Inventories 484.9 484.9 Investment properties 2,408.5 516.2 2,924.7 Investments accounted for
Slide 28: Property valuations
Property valuations For personal use only + Property valuations have remained stable with prime yields firming over the period + WACR stable at 7.9% + Funding and investor appetite for prime real estate remains strong with limited opportunities available 30 June 2011 property valuations (look throug
Slide 29: Net tangible assets
Net tangible assets For personal use only + Movement in net tangible assets for the year ended 30 June 2011 Net tangible asset reconciliation $M $M Per security Total equity at 1 July 2010 4,746.6 0.75 Valuation of non-current assets during the year Valuation of investments properties (26.4) Valuati
Slide 30: Appendix 2 Investment
For personal use only Appendix 2+ Investment Kobe, Japan 30
Slide 31: Own: Leasing
Own: Leasing For personal use only Across the Group and Funds platform: + ~1.9 million sqm leased + Reversion of +2.3% on new leasing deals + Like for like NPI growing at ~3% + Occupancy increased to 96% across all markets – up 3% from June 2010 Division Leasing area (sqm) Net annual rent (A$M) Aver
Slide 32: Customers
Customers For personal use only Hfjdhfs hjhjhjhjhjhjhj hjhjhj 1. Includes customers of Goodman Group direct portfolio and its managed funds and is based on income 32
Slide 33: Direct portfolio detail – Australia
Direct portfolio detail – Australia For personal use only Portfolio snapshot Key metrics1 Total assets A$2.1 billion + 29 properties with a total value of $2.1 billion Customers 231 located across key Australian markets Number of properties 29 + Leasing deals remain strong across the Occupancy 97% p
Slide 34: Direct portfolio detail – UK
Direct portfolio detail – UK For personal use only Portfolio snapshot Key metrics1 + 70% of properties located in the core South Total assets A$0.3 billion East and Midlands markets Customers 11 Number of properties 11 + Weighted average lease expiry of 5.5 years Occupancy 81% + Cap rates stabilised
Slide 35: Appendix 3 Development
For personal use only Appendix 3+ Development Interlink, Hong Kong 35
Slide 36: Developments
Developments For personal use only FY2011 Developments Completions Commitments Work in progress Value ($M) 773 1,418 1,817 Area (m sqm) 0.5 1.2 1.3 Yield (%) 8.9 8.6 8.7 Pre-committed (%) 96 82 86 Weighted Average Lease Term (years) 12.7 10.2 8.5 Development for Third Parties or Funds (%) 94 91 91 A
Slide 37: Developments
Developments For personal use only + Maintained development pipeline at $10 billion: – $0.6 billion of development pipeline committed in FY11 – Development pipeline restocked (Moorabbin, land options), in excess of $10 billion – Forecast GLA over 6.8 million sqm – Development pipeline allocated as A
Slide 38: Appendix 4 Management
For personal use only Appendix 4+ Management Belleville Logistics Centre, France 38
Slide 39: Global platform
Global platform For personal use only As at 30 June 2011 (Australian currency) 39
Slide 40: Goodman Australia Industrial Fund
Goodman Australia Industrial Fund For personal use only Key events Key metrics1 + Total leasing of approximately 420,727 sqm Total assets A$4.3 billion + Approximately 218,000 sqm of development pre- Interest bearing liabilities A$1.7 billion commitments secured providing a total end value of $274 G
Slide 41: Goodman Trust Australia
Goodman Trust Australia For personal use only Key events Key metrics1 + GTA launched 29 March 2011 following successful IIF Total assets A$2.6 billion Unitholder vote and scheme approval Interest bearing liabilities A$1.0 billion + Portfolio comprises $2.6 billion of high quality industrial Gearing2
Slide 42: Goodman European Logistics Fund
Goodman European Logistics Fund For personal use only Key events Key metrics1 + Completed €300 million rights issue: Total assets A$2.0 billion – Dutch asset managers APG (€150 million) and PGGM (€100 Interest bearing liabilities A$0.7 billion million) received their full subscription Gearing2 36.9%
Slide 43: Arlington Business Parks Partnership
Arlington Business Parks Partnership For personal use only Key events Key metrics1 + Total leasing of 34,099 sqm (£7.4 million) during FY2011 Total assets A$1.9 billion (including extensions of 2012 onwards lease expiries) – Interest bearing liabilities A$0.9 billion reducing vacancy to 8% 70% Geari
Slide 44: Goodman Hong Kong Logistics Fund
Goodman Hong Kong Logistics Fund For personal use only Key events + Strategically located and diversified portfolio benefited Key metrics1 from strong economic recovery to achieve 99% Total assets A$1.5 billion occupancy (highest occupancy since December 2008) Interest bearing liabilities A$0.3billi
Slide 45: Goodman Property Trust
Goodman Property Trust For personal use only Key events1 Key metrics1 + Active portfolio management: Total assets $A1.2 billion – Over 140,378 sqm of space leased to new and existing Interest bearing liabilities $A0.5 billion customers, equating to NZ$20.8 million (16.5%) of portfolio Gearing2 36.7%
Slide 46: Appendix 5 Capital management
For personal use only Appendix 5+ Capital management Uxbridge, United Kingdom 46
Slide 47: Group financial covenants
Group financial covenants For personal use only Covenants Test Covenant Result Headroom Net liabilities1 as a percentage of net tangible assets is Gearing ratio 55.0% 29.9% 25.1% not more than 55.0% Interest cover ratio EBITDA to interest expense at least 2.0x 2.0x 4.5x 2.5x Secured debt as a percen
Slide 48: Currency mix
For personal use only Currency mix 48
Slide 49: Financial risk management
Financial risk management For personal use only Financial risk management in line with Group Board policy + Interest risk management: – 89% hedged over next 12 months – Weighted average hedge maturity of 4.4 years – Weighted average hedge rate of 5.13%1 vs spot2 2.31% – Current “all in” net WACD 3.8
Slide 50: Financial risk management
Financial risk management For personal use only Interest rate + Interest rates are hedged to 89% over next 12 months + Weighted average hedge rate of 5.13%1 vs spot2 2.31%: - NZD – (hedge 8.14%, spot 4.20%) - JPY – (hedge 3.32%, spot 0.47%) - HKD – (hedge 2.70%, spot 1.15%) - GBP – (hedge 8.40%3, sp
Slide 51: Financial risk management
Financial risk management For personal use only Interest rate hedging profile Euro payable GBP payable HKD payable NZD payable JPY payable Fixed Fixed1 Fixed Fixed rate Fixed rate rate rate % rate As at June €M % £M % HK$M % NZ$M ¥M % 2012 (538.0) 3.24 (425.0) 8.20 (1,750.0) 2.90 (110.0) 8.79 (1,200
Slide 52: Financial risk management
Financial risk management For personal use only Foreign currency denominated balance sheet hedging maturity profile Currency Maturity Weighted average Amount receivable1 Amount payable1 exchange rate NZ$M 2012 / 2013 1.2413 A$150.7M NZ$187M HK$M 2014 /2015 / 2016 7.3167 A$294.8M HK$2,150M ¥M 2016 87
Slide 53: Exchange rates
Exchange rates For personal use only + Statement of Financial Position – exchange rates as at 30 June 2011 – AUDGBP – 0.6667 (30 June 2010 : 0.5666) – AUDEUR – 0.7405 (30 June 2010 : 0.7050) – AUDHKD – 8.3336 (30 June 2010 : 6.5923) – AUDSGD – 1.3156 (30 June 2010 : 1.1831) – AUDNZD – 1.2953 (30 Jun
Slide 54: Thank you
For personal use only thank+you hjhj h54