Goodman Group · ASX:GMG
Goodman — Goodman Property Trust — FY2024 Earnings Presentation
32 slides from Goodman's earnings presentation, May 28, 2024
Slide 1: Annual Result 2024
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Slide 2: Contents
CONTENTS OVERVIEW FINANCIAL § ~RESULT INVESTMENT PORTFOLIO SUMMARY & OUTLOOK PRESENTED BY:
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Slide 4: Year in Review
YEAR IN REVIEW © 8) a + Portfolio occupancy of 99.5% and WALT of + 93% increase in operating earnings Portfolio Capital Management + $310 million extension of bank facilities 62 years after tax to $1214 million to $14 billion 141,284 sqm of stabilised leasing during the + 48% increase in underlying
Slide 5: Portfolio
Ay WELL ANS ALLL dof de oom 4 Me Col » p Uy ak GOODMAN PROPERTY TRUST | ANNUAL RESULT 2024
Slide 6: Customers
— MAINFREIGHT, — = i FACKELMANN, NORTHPOINT, HIGHBROOK NZPOST;ROSEDALE
Slide 7: Development work in progress
TT LLL: *60RomaRoad Boris = Completing June 2024 t SS 50,261 sqm of work-in-progress to complete in FY25 Work-in-progress is 89% leased, with a WALT of 96 years and a yield on additional cost of 8.3%. Exposure to build-to-lease development is just 0.4% of the total portfolio Work in progress summary
Slide 8: Portfolio performance
AY ass SS : = % : ; === PERFORMANCE 141,284 sqm of space, or 12% of the portfolio, was leased on new or revised terms in FY24: rental uplift of 21.5% achieved on these leases, with an average warehouse rate of $200 psm on core portfolio leases average new lease term of 6.2 years and 2.5 month lease
Slide 9: Rent reversion
RENT REVERSION FY25 stabilised portfolio review profile 10-year lease expiry profile % of stabilised portfolio income: 8% No review 6% Expiry @ 4% Capped market review @ 1% Market review @ 11% OPI review = 9% Pre-agreed rent > @ 61% Fixed review - weighted average review 2.9% % of stabilised portfol
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Slide 12: Tawharau Lane case study
Overs 6 ENzsec| Tawharau Lane's annual operational greenhouse gas emissions are more than 80% below an equivalent reference building, helping to minimise our customers’ carbon footprint CASE STUDY + + + + + Completed in 2023, the three warehouse development totalling 8.135 sqm was designed to be hig
Slide 13: Delivering on our commitments
DELIVERING ON OUR COMMITMENTS The progress made on GMT’s sustainability targets is delivering more operationally efficient properties that reduce customers’ emissions and lower their occupancy costs Target Progress Impact Target 5 Green Star rating from PF 100% | 5 and 6 Green Star ratings achieved
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Slide 15: Financial summary
FINANCIAL SUMMARY Net property income Operating earnings after tax' 14.7% increase in net property income 9.3% increase in operating earnings Underlying cash earnings? Distributions L44cpu 6.20 cpu 4.8% growth in underlying cash earnings 51% increase in cash distributions Loss after tax Net tangible
Slide 16: Net property income
NET PROPERTY INCOME Net property income + Net property income increased by $m $261 million to $2031 million, a 14.7% 210 increase on FY23 4H +16 + Completion of $868.9 million of om a 2031 developments contributed significantly . to the increase in net property income +106 this year 190 . + Underlyi
Slide 17: Financial performance
FINANCIAL PERFORMANCE Statement of comprehensive income $m ee ee ee Property income 2441 213.8 14.2% Property expenses (41.0) (36.8) 114% Net property income 203.1 177.0 14.7% Interest cost (47.3) (29.8) 58.7% Interest income 06 03 100.0% Net interest costs (46.7) (29.5) 58.3% Administrative expense
Slide 18: Cash earnings
CASH EARNINGS Cash earnings + Underlying cash earnings of 744 cents per unit are a 4.8% increase $m on FY23 en eee + Including the $2.3 million benefit of the change to diminishing value Operating earnings before tax 1356 1265 7.2% for building depreciation, cash earnings of: Current tax on operatin
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Slide 20: Interest
INTEREST Hedging profile Borrowing metrics 100% 12 month forward hedging level 70% 84% 20% Weighted average debt cost 48% 4.0% ICR covenant (>2.0x) 2.5x 3.6x 80% 70% 60% 50% 40% 80% 20% 10% 0% Y1 yY2 Ys Y4 Y5 + 70% hedged for the next 12 months; providing ongoing protection in the persistently high
Slide 21: Liquidity
LIQUIDITY Maturity profile! Funding metrics ™ ET Non-bank funding (% of debt drawn) 57% TA% Available liquidity $760 million $739 million Weighted average debt term (drawn)? 3.2 years 36 years LVR covenant (<60%) 32.1% 27.0% 200 + Liquidity was extended through capital management initiatives: — Exte
Slide 22: Gearing
GEARING + LVR of 31.5% with fully committed LVR Loan-to-value ratio of 32.1%, significantly below covenant % Covenant maximum, maximum of 50% 50%. wee ee ew ww ww wn a ee ee ee ee ee ee + Current committed development programme to complete mid-FY25 + While the short-term gearing outlook is aig above
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Slide 24: Looking forward
LOOKING FORWARD + The strength and consistency of GMT’s operating results demonstrate the resilience and agility of our business in more challenging market conditions + The locational advantages of the portfolio ensure GMT is well positioned to continue delivering essential infrastructure for the Au
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Slide 26: Disclaimer
“The information and opinions in this presentation were prepared by Goodman Property Services (NZ) Limited on beh: ‘of Goodman Property Trust or one ofits subsidiaries (GMT), GMT makes no representation or warranty as tothe acouracy or completeness of the information in this presentation. Opinions i
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Slide 28: Portfolio estates summary
= mull © 7s _ Ce =) ea. > _— ce Lid a. =) Ge a. huhu Wirt y Park a Road Estate jelling Rosedale Roma, li Total portfolio fainfreight, NZ DHL, Linfox, Supply Chain Solutions Winstone Containeroo, Camelspace Fletcher Building 100.0 100: 100.0 1000 100: 100.0 96. 100.0 100.0
Slide 29: Customer base
CUSTOMER BASE Industry Exposure Top 10 customers % of portfolio income % of stabilised portfolio income: New Zealand Post 10% Mainfreight 1% DHL 4% Fletcher Building 3% Freightways 3% Officemax 2% Coda % i " fe Linfox % Supply Chain Solutions 2% ok 50k 100k 160k ™Stabilised NLA (sqm) Development NLA
Slide 30: Statement of comprehensive income
STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 March 2024 Property income M1 2441 213.8 Property expenses (410) (368) Net property income 203.1 177.0 Interest cost 24 (47.3) (29.8) Interest income 24 06 03 Net interest cost (46.7) (29.5) Administrative expenses 6 (3.6) (3.4) Manager's base
Slide 31: Balance sheet
BALANCE SHEET Asat 31 March 2024 Non-current assets Investment property 13 45339 47912 Other assets 19 28 Investment property contracted for sale 14 Derivative financial instruments 52 384 429 Property, plant and equipment 38 Tax receivable 69 Deferred tax assets 12 301 Related party asset 7 565 - T
Slide 32: Statement of cashflows
STATEMENT OF CASHFLOWS For the year ended 31 March 2024 Cash flows from operating activities Property inoome received 242.2 212.4 Property expenses paid (48.7) (40.7) Interest income received 06 03 Interest costs paid on borrowings (435) (242) Interest costs paid on lease liabilities (34) (33) Admin
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