Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — FY2017 Earnings Presentation
22 slides from Growthpoint Properties Australia's earnings presentation, Sep 25, 2017
Slide 1: Consistent business model and strategy – FY17 Annual Results Asia Roadshow
Consistent business model and strategy FY17 Annual Results Asia Roadshow 25-27 September 2017 Growthpoint Properties Australia Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409 www.growthpoint.com.au
Slide 2: About the presenters
About the presenters Tim Collyer, B.Bus (Prop), Grad Dip Fin & Inv, AAPI, F Fin, MAICD Managing Director Tim is the Managing Director at Growthpoint Properties Australia and has over 28 years’ experience in ASX listed and unlisted property funds management, property investment and development, prope
Slide 3: Growthpoint Properties Australia: Overview
Growthpoint Properties Australia: The four pillars of our investment offering are: Overview 1 100% Who are we? Our history investment in Australia Growthpoint (GOZ) is an ASX-listed GOZ commenced in its current form in All of the Group’s properties are located in Australia where our management landl
Slide 4: Disciplined growth continues in FY17
Disciplined growth continues in FY171 10.3% Increased NSW Increased office 4.9% exposure to exposure to increase in net tangible assets increase in 26% 66% distributions from 20% from 56% (NTA) Returns Property Capital Management Sustainability Increased Increased improved Gearing average debt avera
Slide 5: Consistent business model delivering for Securityholders
Consistent business model delivering for Securityholders Funds From Operations (FFO) (¢) Distributions (¢) Total Securityholder return comparison per stapled security FY13-FY17 per stapled security over 1, 3 and 5 years (%, p.a.)2 CAGR1 7.1% FY13-FY17 25.5 CAGR1 4.1% 15.9 16.4 22.9 21.8 21.5 14.2 20
Slide 6: Economic outlook, property outlook and Growthpoint's response
Economic outlook Property outlook Office Industrial Retail –– Stable domestic economy –– Declining vacancy, growing population, –– Largely stable across all States –– Significant structural –– Near term cash rate outlook significant infrastructure spending and headwinds remain, –– Tenancy demand bet
Slide 7: 89% of property concentrated on Australia's Eastern Seaboard
89% of property concentrated on Geographic diversity by property value as at 30 June 2017 Australia’s Eastern Seaboard1 VIC 29% 89% QLD 28% located on NSW 26% Australia’s SA 6% Eastern Seaboard ACT 5% Office properties WA 5% Industrial properties Brisbane, QLD TAS 1% Sector diversity $935.0m by prop
Slide 8: Key Portfolio Metrics
Key Portfolio Metrics Top ten tenants Annual rent review type (%) Net property income per State Portfolio lease expiry profile (%) by passing rent as at 30 June 2017 as at 30 June 2017 / Territory for FY17 ($m) per financial year, by income 47 % WALE (yrs) Woolworths 17 5.3 NSW Police 8 6.9 71.9 Com
Slide 9: New generation office development proposed for Richmond, Victoria
New generation office development proposed for Richmond, Victoria The new Richmond office development will offer the Melbourne metro office market a new benchmark in quality and amenity. Located in a prominent and commanding position at the front of the Botanicca Corporate Park, this new generation
Slide 10: Property portfolio: Summary
Property portfolio: Summary nnSignificant portfolio re-weighting undertaken in FY17: –– Increased exposure to NSW (20% to 26%) and office sector (56% to 66%) –– De-risked portfolio via $259.1 million strategic asset sales nnMaintained high levels of occupancy with low lease expiries in FY18 and FY19
Slide 11: Capital Management: Strategic execution
Capital Management: Strategic execution Growthpoint Maintain gearing Extend average $245.7 million continued to within 35%-45% range debt maturity new equity in FY17 strengthen its capital position over the 45% 5.5 2H16 DRP course of FY17, 43.1% 5.0 5.0 yrs ($42.2m) whilst supporting the Group’s tra
Slide 12: Strategy and FY18 objectives
Strategy and FY18 objectives Primary objective: Increase distributions for Securityholders Other objectives: –– Achieve FFO and distribution guidance: Disciplined Financial Growth Returns –– FFO: at least 23.6 cps –– Distributions: 22.0 cps –– Continue to evaluate investment opportunities, focus on
Slide 13: Appendices
FY17 Annual Results Presentation Appendices Building 2, 572-576 Swan Street Richmond, VIC
Slide 14: Appendix 1: state of key office markets
Appendix 1: 4% of 15% of Growthpoint Growthpoint Portfolio Brisbane - CBD Brisbane - Fringe Portfolio state of key office markets Vacancy 15.5% Prime Secondary Vacancy 17.7% Prime Secondary R $700 gross $550 gross R $534 gross $425 gross R Average face rent per sqm per annum I 37% 38% I 37% 38% I In
Slide 15: Appendix 2: state of key industrial markets
Appendix 2: state of key industrial markets R Average face rent per sqm per annum I Indicative incentives Y Average core market yield 7% of Brisbane Growthpoint Rents Rents Portfolio decreasing increasing 565,905 sqm* / incentives / incentives decreasing Prime Secondary increasing Stable R $111 net
Slide 16: Appendix 3: Portfolio overview – Five year performance summary
Appendix 3: Portfolio overview – Five year performance summary As at 30 June 2017 2016 2015 2014 2013 Number of properties no. 58 58 53 51 44 Total value $m 3283.8 2,832.60 2,372.50 2,093.70 1,694.50 Occupancy % 99 99 97 98 98 Like-for-like value change $m / % of asset value 138.6 / 5.2 130.2 / 5.5
Slide 17: Appendix 4: Leasing
Appendix 4: Leasing Leases completed in FY17 Term Annual rent NLA Car At 30 June 2017 Address Sector Tenant Start date (yrs) increases (%) (sqm) Parks 333 Ann Street Brisbane QLD Office St Hilliers Property Q2, FY17 5.0 Fixed 3.75% 503 - 15 Green Square Close Fortitude Valley QLD Office Duy Khuong N
Slide 18: Appendix 4: Leasing (cont.)
Appendix 4: Leasing (cont.) Term Annual rent NLA Car Address Sector Tenant Start date (yrs) increases (%) (sqm) Parks Greater of CPI 81 Derby Street Silverwater NSW Industrial IVE Group Australia Q1, FY18 5.0 & 3.00% 7,984 83 33-39 Richmond Road Keswick SA Office Funk Leasing Q1, FY18 5.0 Fixed 3.50
Slide 19: Appendix 5: Top five office properties/property groups by value
Appendix 5: Top five office properties/property groups by value 56% of office portfolio $1,222.2m total value of top five properties / property groups 6.8yrs SW1 Complex, 1 Charles St, Sydney Olympic Park, 75 Dorcas St, Bldgs 1, 2, & 3, 572-576 weighted average South Brisbane, QLD Parramatta, NSW NS
Slide 20: Appendix 6: Top five industrial properties/property groups by value
Appendix 6: Top five industrial properties/property groups by value 83% of industrial portfolio $913.1m total value of top five properties / property groups 5.4yrs Woolworths Linfox properties, Melbourne Airport Knoxfield Industrial 9-11 Drake Boulevard, weighted average Distribution Centres Erskine
Slide 21: Appendix 7: Sydney Olympic Park, NSW
Appendix 7: Sydney Olympic Park, NSW Sydney Olympic Park Growthpoint’s Sydney Olympic highlights Park assets, key statistics (as at 30 June 2017) • Located 16 kilometres west of Sydney’s CBD, Sydney Olympic Park was —— $252.3 million total property value redeveloped for the 2000 Sydney —— 6.3% avera
Slide 22: Thank you
Contact details: Retail Investors: Computershare Investor Services Pty Limited, GPO Box 2975, Melbourne VIC 3001 Australia Phone (within Australia): 1300 850 505 Phone (outside Australia): +61(0)3 9415 4000 Fax: +61(0)3 9473 2500 Email: webqueries@computershare.com.au Institutional Investors: Aaron
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