Gdi Property Group · ASX:GDI
Gdi Property — H1 FY2017 Earnings Presentation
36 slides from Gdi Property's earnings presentation, Feb 20, 2017
Slide 1: GDI Property Group Half yearly results presentation
For personal use only GDI PROPERTY GROUP Half yearly results presentation 20 February 2017
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
For personal use only INTRODUCTION 235 STANLEY LINKING STREET, EQUITY TOWNSVILLE TO PERFORMANCE 2
Slide 4: Overview
For personal use only Overview NTA – $1.07 per security FFO of 4.73 cents per Distribution of 3.875 cents security per security Total securityholder Achieved sales $24.4 return in period of Absolute Total Return in period of 9.8% million above 16.2% independent valuation LINKING EQUITY TO PERFORMANC
Slide 5: Executing on strategy
Executing on strategy Asset sales crystallising NTA upside and providing firepower for future acquisitions 25 Grenfell Street, Adelaide For personal use only – +$9.9 million premium above last independent valuation – settled 5 January 2017 307 Queen Street, Brisbane – +$14.5 million premium ab
Slide 6: Executing on strategy
Executing on strategy Occupancy continuing to improve across the remaining portfolio For personal use only Mill Green 66 Goulburn 50 Cavill Stanley 197 SGT 5 Mill St 1 Mill St St Ave Place Ashfield August 20161 98.37% 87.26% - 79.54% 65.75% 87.84% 100.00% February 20171 100.00% 91.10% - 93.33% 73.
Slide 7: Guidance and buy-back
Guidance and buy-back Forecast FFO for FY17 of not less than 8.20 cents per security1 FFO for second half of not less than 3.47 cents per security For personal use only Forecast distribution for FY17 of not less than 7.75 cents per security1 Distribution for the second half of not less than
Slide 8: Financial results
For personal use only FINANCIAL RESULTS LINKING EQUITY 66 GOULBURN TOSYDNEY ST, PERFORMANCE 7
Slide 9: Contributors to FFO and AFFO
Contributors to FFO and AFFO Dec 16 Dec 15 Property division FFO slightly lower than previous $’000 $’000 corresponding period, primarily due to contribution from 233 Castlereagh Street, Sydney, in previous For personal use only Property Division FFO 31,233 31,679 period: Funds Management FFO 2,78
Slide 10: Strong balance sheet following settlements
Strong balance sheet following settlements 31 December 2016 Settlements Distribution 28 February 2017 $’000 $’000 For personal use only Current assets Cash and cash equivalents 11,577 24,408 (20,879) 15,106 Non‐current assets held for sale 264,908 (264,908) ‐ Other assets 9,440 9,440 GDI No. 42 Offi
Slide 11: Debt profile
Debt profile Drawn debt on the primary facility of $289.9 million as at 31 December 2016 Following settlements, drawn debt of $49.4 million For personal use only Undrawn debt of $65.6 million to fund working capital requirements and capital management initiatives Debt provided to GDI No. 42
Slide 12: Interest rate hedging
Interest rate hedging Board hedging policy of at least 50% of drawn debt hedged Maintained hedging at the bottom of the range since IPO For personal use only Have resisted restructuring or breaking any hedges until settlement of 307 Queen Street, Brisbane Currently $40 million of primary fac
Slide 13: The property portfolio
For personal use only THE PROPERTY PORTFOLIO 50 CAVILL LINKING AVE, SURFERS EQUITY PARADISE TO PERFORMANCE 12
Slide 14: Portfolio overview
For personal use only Portfolio overview LINKING EQUITY TO PERFORMANCE 13
Slide 15: Portfolio overview
Portfolio overview Portfolio For personal use only Total NLA1 WALE (by NLA) 1,2 WACR1 occupancy1,2 15 February 2017 103,296 86% 4.1 years 7.3% 16 August 2016 148,357 81% 4.7 years 7.6% Portfolio lease expiry profile as at 15 February 2017 50% 40% 30% 20% 10% 0% Vacant FY 17 FY 18 FY 19 FY 20 FY 21 F
Slide 16: Perth tenant and building map
15 Treasury Exchange Plaza Elizabeth Quay St Martins Tower Allendale Square BCG Centre 100 SGT 108 SGT 140 SGT Quadrant Brookfield Place 2 BHP Convention Centre Westralia Square Alluvion Mill Green Complex Forrest Centre LINKING EQUITY TO PERFORMANCE 225 SGT Old Woodside QV1 (Chevron) New Woodside F
Slide 17: Mill Green Complex
Mill Green Complex Signs of improvement in Perth market Key metrics as at: Feb 2017 Dec 2016 Jun 2016 Limited new supply forecast for next 5+ years (new For personal use only Woodside building adding 48,484sqm in CY18) Independent valuation date 31 Dec 16 31 Dec 15 Anticipate effective rents t
Slide 18: St Georges Terrace, Perth
For personal use only 197 St Georges Terrace, Perth LINKING EQUITY TO PERFORMANCE 17
Slide 19: St Georges Terrace, Perth
197 St Georges Terrace, Perth Lease expiry profile as at 15 February 2017 100% Key metrics as at: Feb 2017 Dec 2016 Jun 2016 For personal use only Independent valuation date 31 Dec 16 31 Dec 15 Independent valuation ($M) 236.50 241.00 80% Independent valuation /NLA ($) 8,942 9,076 Carrying value ($M
Slide 20: Mill Street, Perth
For personal use only 5 Mill Street, Perth Mill Green LINKING EQUITY TO PERFORMANCE 19
Slide 21: Mill Street, Perth
5 Mill Street, Perth Lease expiry profile as at 15 February 20171 Key metrics as at: Feb 2017 Dec 2016 Jun 2016 100% For personal use only Independent valuation date 31 Dec 16 31 Dec 15 Independent valuation ($M) 53.50 53.00 80% Independent valuation /NLA ($) 7,446 7,376 Carrying value ($M) 53.50 53
Slide 22: Mill Street, Perth
1 Mill Street, Perth Key metrics as at: Feb 2017 Dec 2016 Jun 2016 For personal use only Independent valuation date 31 Dec 16 31 Dec 15 Independent valuation ($M) 30.00 32.00 Independent valuation / NLA ($) 4,513 4,813 Carrying value ($M) 30.00 32.06 Capitalisation rate 8.00% 8.25% Discount rate 8.5
Slide 23: Goulburn Street, Sydney
66 Goulburn Street, Sydney Consolidated Media Holdings Limited (CMHL) vacated 10,432sqm (11 floors) in August 2016, with some floors For personal use only surrendered early to facilitate new leasing activity Eight full floors leased, two part floors leased to seven new tenants with lease commenc
Slide 24: Goulburn Street, Sydney
66 Goulburn Street, Sydney Lease expiry profile as at 15 February 20171 Key metrics as at: Feb 2017 Dec 2016 Jun 2016 Independent valuation date 31 Dec 16 30 Jun 16 For personal use only 100% Independent valuation ($M) 202.00 187.50 Independent valuation /NLA ($) 8,811 8,141 80% Carrying value ($M)
Slide 25: Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise Completed approximately 70% of planned refurbishment works For personal use only Timing and cost within original budget expectations – HVAC, end of trip and lift lobby upgrades and refurbishment of all vacant floors all but complete Work commenced on ground f
Slide 26: Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise Lease expiry profile as at 15 February 20171 Key metrics as at: Feb 2017 Dec 2016 Jun 2016 100% Independent valuation date 31 Dec 16 30 Jun 16 For personal use only Independent valuation ($M) 65.00 55.00 Independent valuation /NLA ($) 3,921 3,318 80% Carrying value
Slide 27: Liverpool Road, Ashfield
223 – 237 Liverpool Road, Ashfield Initial discussions with Government Property NSW in relation to a lease extension For personal use only Commenced work on alternate use strategies Market evidence of viable residential conversion Key metrics as at: Feb 2017 Dec 2016 Jun 2016 Independent valua
Slide 28: Stanley Street, Townsville
235 Stanley Street, Townsville New 10 year lease for 1,738sqm to NDIS, increasing occupancy to 88% from 79% at the time of settlement (June For personal use only 2016) Discussing lease extensions with existing tenants, including Australian Tax Office and Department of Human Services Plan to br
Slide 29: Stanley Place, Townsville
235 Stanley Place, Townsville Lease expiry profile as at 15 February 20171 Key metrics as at: Feb 2017 Dec 2016 Jun 2016 For personal use only 100% Independent valuation date 1 Mar 16 1 Mar 16 Independent valuation ($M) 52.50 52.50 80% Independent valuation /NLA ($) 3,806 3,806 Carrying value ($M) 5
Slide 30: Funds business
For personal use only FUNDS BUSINESS 66 GOULBURN LINKING STREET, EQUITY SYDNEY TO PERFORMANCE 29
Slide 31: Funds Management business
Funds Management business Funds Management business is sub-scale at <$750.0 Case Study – GDI No. 40 Office Trust million FUM Acquired 80 George Street, Parramatta in June 2015 For personal use only Growing FUM back towards pre-IPO levels has been and for $38.7 million and immediately commenced
Slide 32: Appendix
For personal use only APPENDIX 235 STANLEY LINKING STREET, EQUITY TOWNSVILLE TO PERFORMANCE 31
Slide 33: Profit or Loss
Profit or Loss Group Trust 2016 2015 2016 2015 For personal use only Half year ended 31 December $'000 $'000 $'000 $'000 Revenue from ordinary activities Property income 38,854 38,207 38,854 38,207 Funds management income 804 2,294 - - Interest income 97 985 88 1,073 Other income 7 - 7 - Total reven
Slide 34: NPAT to AFFO
NPAT to AFFO Group 31 December 2016 31 December 2015 For personal use only $'000 $'000 Total comprehensive income for the year 55,601 17,037 Portfolio acquisition and other transaction costs 374 396 Contribution resulting from consolidation of GDI No. 42 Office Trust (3,739) - Distributions and fund
Slide 35: Property by property AIFRS NPI and FFO
Property by property AIFRS NPI and FFO 31 December 31 December 2016 2015 For personal use only $m $m AIFRS AIFRS NPI1 FFO NPI1 FFO Commentary • Like for like FFO lower notwithstanding higher occupancy due to: • One off outgoings charge (refund) from FY15 (+$500,000) • Lower tenant recharges ($250,00
Slide 36: For personal use only
Unsaved Document / 29/07/2013 / 16:23 For personal use only LINKING EQUITY TO PERFORMANCE 35