Gpt Group · ASX:GPT
Gpt — The GPT Group — FY2022 Earnings Presentation
42 slides from Gpt's earnings presentation, Feb 20, 2023
Slide 1: 2022 Annual Result Presentation
20 February 2023 For personal use only 2022 Annual Result Presentation The GPT Group (‘GPT’) provides its 2022 Annual Result Presentation. -ENDS- This announcement is authorised for release by The GPT Group Board. For more information, please contact: INVESTORS MEDIA Penny Berger Grant Taylor Head o
Slide 2: Market Briefing Annual Result 2022
For personal use only Agenda Market Briefing Annual Result 2022 20 February 2023
Slide 3: Acknowledgement of Country
For personal use only Agenda GPT acknowledges the Traditional Custodians of the lands on which our business operates. We pay our respects to Elders past, present and emerging; and to their knowledge, leadership and connections. We honour our responsibility for Country, culture and community in the A
Slide 4: Agenda
For personal use only 2022 Full year in review | Bob Johnston 4 Results and Capital management | Anastasia Clarke 8 Retail | Chris Barnett 13 Office | Martin Ritchie 22 Logistics | Chris Davis 30 Outlook and 2023 Guidance | Bob Johnston 38 Agenda Agenda Annual Result 2022
Slide 5: 2022 Annual Result Financial summary
2022 Annual Result Financial summary For personal use only 32.4cents 25.0cents Funds From Operations Distribution per security, up 12.4% per security, up 7.8% $5.98 3.9% Net Tangible Assets per 12 month security, down 1.8% Total Return1 Investment portfolio Portfolio occupancy 97.5% Assets under man
Slide 6: Portfolio valuation metrics
Portfolio valuation metrics Overall portfolio revaluation loss of $159.3m For personal use only Office Logistics Retail 2022 Valuation movement (12 months to 31 Dec 2022) -$316.0m +$63.4m +$93.3m -5.0% +1.4% +1.7% 2H 2022 (6 months to 31 Dec 2022) -$322.8m -$52.0m -$4.0m 1H 2022 (6 months to 30 Jun
Slide 7: 2022 highlights
2022 highlights 32.4b $ » Funds under management expanded to $19.1b, with assets under management of $32.4b Assets under For personal use only management − $2.8b UniSuper direct real estate mandate − $2.7b Australian Core Retail Trust (ACRT) GPT Portfolio1 » Retail remixing and leasing enhancing cus
Slide 8: Leadership in ESG
Leadership in ESG Integrating climate response and nature positive objectives For personal use only » Targeting to achieve Climate Active Carbon Neutral (for Buildings) certifications for all assets that GPT operationally controls and has an ownership interest in, by the end of 20241 » Partnering wi
Slide 9: Results and Capital management
For personal use only Agenda Results and Capital management Annual Result 2022
Slide 10: Financial result
Financial result $469.3m $620.6m For personal use only Statutory Net Profit After Tax Funds From Operations ($m) 2022 2021 Change 620.6 554.5 Valuation (decreases)/increases (159.3) 924.3 Treasury instruments marked to market and other items 8.0 (56.0) 469.3 1,422.8 32.40 28.82 12.4% 562.1 520.4 8.0
Slide 11: Segment result
Segment result ($m) 2022 2021 Change Comments For personal use only Movement in COVID allowances (2022: +$1.4m, 2021: -$62.9m) and rent Retail 289.8 233.9 23.9% reviews (+$8.6m), offset by sale of Casuarina and Wollongong (-$17.0m) Full year contribution from acquisitions and developments (+$13.3m),
Slide 12: Interest rate hedge profile 2023-2025
Interest rate hedge profile 2023-2025 61% hedged over the next 3 years at an average fixed rate of 2.9% For personal use only 100% Hedge profile 90% 78% 80% % of Drawn debt 70% 62% 60% 50% 42% 40% 30% 3.5% 20% 3.1% 2.5% 10% 0% Agenda 2023 % Hedged 2024 Hedge rate 2025 8 Exhibition Street, Melbourne
Slide 13: Capital management
Capital management Key Statistics 2022 2021 Comments For personal use only Net Tangible Assets per security $5.98 $6.09 Driven by a valuation decrease of $159.3m Within stated range of 25%-35% and material headroom to 50% debt Net Gearing 28.5% 28.2% covenant. Modest level of development capital com
Slide 14: Retail
For personal use only Agenda Retail Annual Result 2022
Slide 15: Retail overview
Retail overview $303.5m 4.5% For personal use only Segment contribution, Comparable up 23.5% income growth 99.4% 5.03% Portfolio occupancy, Weighted average up from 99.1% capitalisation rate $13.0b 9.4% Assets under Total Specialty management, up 56.7% sales growth vs 2019 $ 12,259psm Agenda Special
Slide 16: National retail sales growth above 20-year average
National retail sales growth above 20-year average Strong Total Retail sales growth in 2022 For personal use only » Retail Sales growth up 11.4% on 2021 — Strong labour market, wage growth and household savings levels driving discretionary spending — Retail price inflation Store based sales have bee
Slide 17: Leasing momentum continues
Leasing momentum continues » Strong occupancy with high levels of deal activity and tenant retention For personal use only » 103 retailers new to the portfolio » Average lease term of 4.7 years all with fixed base rents and annual increases » Leasing spreads improving » Tenants on holdover decreasin
Slide 18: Centre sales outperform 2019
Centre sales outperform 2019 » 2022 delivered strong sales growth with Total Centre sales up 6.8% and Total Specialty sales up 9.4% on 2019 For personal use only — Strong performance delivered across most specialty retailer categories driven by Leisure (+18.8%), Fashion (+9.8%) and Dining (+9.7%) —
Slide 19: Melbourne Central recovery
Melbourne Central recovery » Retail sales continue to recover, with December monthly sales inline with 2019 (-0.1%) For personal use only » Total Specialty MAT for the 12 months has improved to $14,210/sqm, down 1.5% on 2019 — Leisure (+21.4%), Food Retail (+13.7%) and Technology & Appliances (+11.5
Slide 20: Highpoint leasing and development driving record MAT
Highpoint leasing and development driving record MAT » Successful delivery of new Coles supermarket precinct and tenant remixes bringing new brands and flagships to the market For personal use only » Total Centre MAT reaching record high of $1.2b » Strong leasing demand driving occupancy up to 99.9%
Slide 21: Growing Funds Management
Growing Funds Management GPT appointed as manager of UniSuper and Australian Core Retail Trust For personal use only (ACRT) » UniSuper Portfolio − Karrinyup Shopping Centre, Western Australia − Marrickville Metro, New South Wales − Dapto Mall, New South Wales − Malvern Central, Victoria » ACRT Portf
Slide 22: Retail outlook
Retail outlook » Quality of the portfolio well positioned to continue to grow sales and For personal use only customer traffic » Household savings and low unemployment should soften the impact of interest rate increases » Retail sales growth expected to moderate from current high levels, but will re
Slide 23: Office
For personal use only Agenda Office Annual Result 2022
Slide 24: Office overview
Office overview For personal use only $334.9m 3.4% Segment contribution, Comparable income up 9.6% growth 87.9% 5.03% Portfolio occupancy Weighted average (88.5% including HoA) capitalisation rate 4.9yrs $14.7b Weighted average Assets under management, lease expiry up 4.8% Agenda One One One Eagle S
Slide 25: Challenging office market conditions
Challenging office market conditions » Vacancy rates remain elevated with occupier demand favouring prime office space For personal use only » Continue to see demand for fitted space with at least 43% of market briefs in Sydney CBD and Melbourne CBD requesting fitted space1 » Occupiers >3,000sqm con
Slide 26: Office portfolio leasing results
Office portfolio leasing results » 104,300sqm1 of leasing across 145 deals, for an average lease term of 4.9 years For personal use only — 85% of leases by Net Lettable Area (NLA) commenced in 2022 or in 2023 Key leasing transactions 2 — 3.8% average gross face leasing spread Breakdown of leasing 7,
Slide 27: 2023 leasing outlook
2023 leasing outlook » Currently 12% portfolio vacancy, with another 9% expiring in 2023 1 For personal use only » Focused leasing strategy targeting occupancy >90% by December 2023 GPT lease expiry profile1 GPT Office occupancy vs Eastern seaboard Prime grade average As at 31 December 2022 15% 100%
Slide 28: Innovative workplace products
Innovative workplace products » Our differentiated workplace products are designed to fulfil the changing needs of our customers For personal use only — Offer speed to market, reduced downtime and rental premium while diversifying our customer base » Larger customers are attracted to our enhanced lo
Slide 29: Strategy case study: William & Bourke Streets
Strategy case study: 181 William & 550 Bourke Streets » Improved occupancy from 54.8% to 84.7% in 18 months following the departure of three major tenants For personal use only » Leasing success through building upgrades and the introduction of GPT’s workplace products and experiences » 80% of new c
Slide 30: Office outlook
Office outlook Occupier Outlook GPT’s Response For personal use only » Our workplace products target the most active part of the Leasing market to remain market challenging in 2023-2024 » Targeting >90% portfolio occupancy at December 2023 » Additional DesignSuites being delivered to drive leasing i
Slide 31: Logistics
For personal use only Agenda Logistics Annual Result 2022
Slide 32: Logistics overview
Logistics overview For personal use only $188.1m 3.0% Segment contribution, Comparable income up 21.6% growth 99.2% 4.40% Portfolio Weighted average occupancy capitalisation rate 6.2yrs $4.7b Weighted average Assets under management, lease expiry up 5% Agenda ADDRESS, 50 Old Wallgrove Road, Eastern
Slide 33: Occupier demand and low vacancy driving market rental growth
Occupier demand and low vacancy driving market rental growth For personal use only Demand driven by occupiers investing in the supply chain and a growing retail sector, underpinned by population growth » Real estate still makes up a proportionately small amount of total supply chain costs, with tran
Slide 34: Strong leasing outcomes achieved
Strong leasing outcomes achieved » Total leasing1 of 278,900sqm (2021: 182,300sqm) including 130,400sqm in Key leasing transactions For personal use only developments » High occupancy of 99.2% and WALE of 6.2 years 40,700sqm 38,100sqm » Strong rental outcomes being achieved 15% 9% 33,200sqm 15,200sq
Slide 35: Access to market rental growth
Access to market rental growth » Ability to capture upside through expiry profile and development For personal use only » 25% of portfolio to capture market rent growth in next 3 years — 21% lease expiry 2023-2025 — 4% are lease deals from 2022 that commence in 2023 » Three developments totaling 60,
Slide 36: Enhancing returns through development and QuadReal Fund
Enhancing returns through development and QuadReal Fund » Delivered >30% development margin and average yield on cost of 5.7% across 4 GPT development completions For personal use only » GPT QuadReal Logistics Trust (GQLT) well progressed with AUM of $0.5b and half of the $2b target committed includ
Slide 37: Future proofing the portfolio for transition to a low carbon future
Future proofing the portfolio for transition to a low carbon future Driving sustainability outcomes For personal use only Reuse & » Developing efficient buildings, designed to achieve minimum 5 Star Renewable Low Impact Sourcing Design Green Star ratings » Introducing onsite battery storage and prep
Slide 38: Logistics outlook
Logistics outlook GPT Logistics Strategy For personal use only » Maximise income opportunities in our prime portfolio » Enhance returns through development and QuadReal partnership » Broaden relationships with our high-quality customer base » Deliver on ESG by developing efficient and sustainably fo
Slide 39: Outlook and 2023 Guidance
For personal use only Agenda Outlook and 2023 Guidance Annual Result 2022
Slide 40: Outlook and 2023 Guidance
Outlook and 2023 Guidance Outlook For personal use only » Tighter monetary conditions are expected to moderate economic growth over the next 12 months » Volatility in bond yields creating uncertainty for valuation metrics » Higher cost of debt a headwind for 2023 FFO growth » Retail portfolio well p
Slide 41: Thank you for joining us
For personal use only Agenda Thank you for joining us Annual Result 2022 Questions
Slide 42: Disclaimer
Disclaimer This Presentation (Presentation) has been prepared by The GPT Group comprising GPT RE Limited (ACN 107 426 504; AFSL 286511), as responsible entity of the For personal use only General Property Trust, and GPT Management Holdings Limited (ACN 113 510 188) (together, GPT). The information p