Gpt Group · ASX:GPT
Gpt — The GPT Group — FY2019 Earnings Presentation
37 slides from Gpt's earnings presentation, Feb 10, 2020
Slide 1: 2019 Annual Result Market Briefing
2019 Annual Result Market Briefing 10 February 2020
Slide 2: Acknowledgement of Traditional Custodians
The GPT Group acknowledges the Traditional Custodians of the lands on which our business and assets operate, and recognises their ongoing connection to land, waters and community. We pay our respects to First Nations Elders past, present and emerging. Artwork created by Molly Wallace
Slide 3: Agenda
Agenda 4 2019 Annual Result Highlights | Bob Johnston 9 Financial Summary & Capital Management | Anastasia Clarke 13 Office & Logistics | Matthew Faddy 26 Retail | Chris Barnett 33 Funds Management | Nicholas Harris 36 Summary & Outlook | Bob Johnston Annual Result 2019
Slide 4: Our Strategic Focus
Our Strategic + Growing our Office & Logistics portfolio Delivering attractive + High weighting to NSW and VIC markets returns Focus + Increased the development pipeline to an expected end value of approximately $5 billion1 5yr avg. Total + Total Assets Under Management of $25.3 billion Return 13.3%
Slide 5: 2019 Annual Result Financial Highlights
2019 Consistently delivering strong returns Annual Result FINANCIAL 2.6% FFO GROWTH 4.0% DISTRIBUTION $ 5.80 8.7% NTA PER TOTAL HIGHLIGHTS PER SECURITY GROWTH PER SECURITY RETURN SECURITY UP 3.9 PER CENT Investment Portfolio Portfolio Revaluation $342.2M occupancy 96.5% gains Like for like Weighted
Slide 6: Executing on strategy
Executing on strategy Office & Retail Developments Darling Park Acquisition & Development Opportunity Expected end value of $800 million Expected end value, including Cockle Bay Park development, of >$1 billion1 Current + Darling Park 1&2 and Cockle Bay Wharf + 32 Smith Street, Parramatta, office -
Slide 7: Environmental Sustainability
Environmental Sustainability The GPT Group | 2019 Annual Result | 10 February 2020 7
Slide 8: Social Responsibility
Social Responsibility The GPT Group | 2019 Annual Result | 10 February 2020 8
Slide 9: Finance & Treasury
Finance & Treasury Annual Result 2019 Artists impression – 550 Bourke Street and 181 Williams Street, Melbourne
Slide 10: Financial Summary
Financial Summary 12 Months to 31 December ($ million) 2019 2018 Change Funds From Operations (FFO) 613.7 574.6 6.8% Valuation increases 342.2 910.7 $ 880M STATUTORY NET PROFIT Treasury instruments marked to market (82.7) (39.6) AFTER TAX Other items 6.8 6.0 Net Profit After Tax (NPAT) Funds From Op
Slide 11: Segment Result
Segment Result 12 Months to 31 December 2019 2018 Change Comments ($ million) Strong comparable income growth of 6.2% driven by strong leasing outcomes and Office 276.3 268.7 ▲ 2.8% higher rents. Segment result was offset by reduced income post the sale of MLC Operations net income up 15.4% driven b
Slide 12: Capital Management
Capital Management Domestic Foreign CPI Bonds bank debt bank 2% 2% debt Secured + Modest gearing of 22.1% 9% bank debt + Successfully completed $867 million equity raising to Sources of 3% fund acquisition and growth opportunities + Increased liquidity to $1.4 billion Drawn Commercial Paper USPP Ban
Slide 13: Office & Logistics
Office & Logistics Annual Result 2019
Slide 14: Office Highlights
Office Highlights Portfolio Size & Geographic Exposure 6.2% PORTFOLIO 10.0% 147,600sqm TOTAL PORTFOLIO LEASES LIKE FOR LIKE RETURN SIGNED Office Retail $6.3bn INCOME GROWTH (12 MONTHS) $6.1bn Sydney 59% Melbourne 31% Key Highlights Brisbane 10% + Portfolio occupancy of 98.3% up 1.2% in the 12 months
Slide 15: Office Valuations & Market Fundamentals
Office Valuations & Market Fundamentals + Office valuation gains in 12 months of $271.2 million, with market rental growth contributing over 50% of increase $271.2m PORTFOLIO VALUATION UPLIFT + Melbourne Central Tower together with Governor Phillip & Governor Macquarie Towers and 2 Park Street in Sy
Slide 16: Office Leasing
Office Leasing 147,600sqm 98.3% SIGNED LEASES PORTFOLIO Community & Amenity With an additional 29,400sqm of terms agreed OCCUPANCY¹ + Strong leasing outcomes achieved with 2020 and 2021 expiry reduced from 29% to 17% in the 12 months² Sustainability + WALE extended to 5.3 years and renewals secured
Slide 17: Office Acquisitions & Divestments
Office Acquisitions & Divestments + Significant transaction activity in 2019, investing in high quality assets providing greater control for the Group + Acquired stake in Darling Park 1 & 2, Sydney, made up of two premium office assets and a harbourfront development opportunity + GPT Wholesale Offic
Slide 18: Office Portfolio Composition
Office Portfolio Composition + Portfolio rebalancing towards newer, less capital 6.2% PORTFOLIO intensive assets and securing development opportunities for value creation + Consistent high returns delivered over past 5 years, LIKE FOR LIKE with average annual like for like growth of 5.9% INCOME GROW
Slide 19: Office Development Pipeline
Office Development Pipeline PHOTO FROM GROUND REQUESTED Construction Progress at 31 January 2020 Artists impression Artists impression 32 Smith Street, Parramatta + Construction progressing well, due for practical completion in late 2020 + Asset 64% leased¹ with QBE anchoring the development + Parra
Slide 20: Office Development Pipeline
Office Development Pipeline Artists impression of indicative building scale Artists impression Cockle Bay Park, Sydney Frame, 300 Lonsdale Street, Melbourne + International Design Competition for Cockle Bay Park is + Further enhance Melbourne Central as a dominant mixed use precinct, incorporating n
Slide 21: Logistics Highlights
Logistics Highlights Portfolio Size & Geographic Exposure 15.4% 12.1% 231,600sqm OPERATIONS TOTAL PORTFOLIO LEASES SIGNED Office $6.1bn Retail NET INCOME RETURN $6.3bn GROWTH (12 MONTHS) Sydney 68% Melbourne 24% Key Highlights Brisbane 8% + Portfolio occupancy of 95.7%¹ with long WALE of 7.3 years +
Slide 22: Logistics Leasing
Logistics Leasing + Demonstration of active leasing strategies to drive value and lease future expiries, 231,600sqm 95.7% SIGNED LEASES PORTFOLIO with strong focus on customer relationships + New Truganina facility completed and fully leased 1 With an additional 27,500sqm of terms agreed OCCUPANCY¹
Slide 23: Logistics Portfolio Growth
Logistics Portfolio Growth + Portfolio growth of $545 million during the year to $2.4 billion + Acquired five prime logistics facilities totalling $212 million in Sydney + Secured a 23,000sqm facility in Truganina, Melbourne for $42 million settling in 2020, pre-leased to an international logistics
Slide 24: Logistics Market Context
Logistics Market Context Other 14% + Australia population is projected to grow ~20% by 2030 Population + Population is expected to be increasingly urbanised, with Wholesale Trade Transport, Postal & Warehousing ~70% in capital cities 8% 37% Growth Eastern Seaboard Industrial Take-Up by Industry + Ov
Slide 25: Logistics Development Pipeline
Logistics Development Pipeline + Land parcels secured in key growth corridors: + Truganina (Boundary Road), Melbourne: 32.8 hectare site secured on deferred settlement terms >550,000sqm PIPELINE CAPACITY + Truganina (Niton Drive), Melbourne: 14.9 hectare site forming part of The Gateway Logistics Hu
Slide 26: Retail
Retail Annual Result 2019 Sunshine Plaza, Queensland
Slide 27: Retail Highlights
Retail Highlights Portfolio Size & Geographic Exposure 1.2% PORTFOLIO 99.6% PORTFOLIO $ 11,667 SPECIALTY SALES Office LIKE FOR LIKE OCCUPANCY PRODUCTIVITY $6.1bn Retail INCOME GROWTH PER SQUARE METRE NSW 41% $6.3bn VIC 44% Key Highlights QLD 10% NT 5% + Retail segment FFO contribution of $326.0 mill
Slide 28: Retail Sales
Retail Sales SPECIALTY SALES PRODUCTIVITY (<400sqm) Specialty Sales Productivity by Category 11.1% MAT $psm growth $ 11,667per sqm (psm) 7.6% 5.8% 3.3% 2.1% 1.9% 2.3% 1.1% 0.5% TOTAL SPECIALITY SALES PRODUCTIVITY -0.7% GROWTH (PSM) -1.1% -2.0% -2.4% -6.5% 1.9% -7.0% Cinemas Leisure Dining Health & B
Slide 29: Retail Leasing
Retail Leasing New Dining + 459 leasing deals completed introducing over 70 precincts delivered new retailers to the portfolio in 2019 + Strong retail demand reflected in high portfolio occupancy + Holdovers down from the half, and in-line with 2018 at 5.7% of specialty rent + New specialty leases a
Slide 30: Retail Portfolio
Retail Portfolio Retail Offer that is Retail Shift – Total Specialties (5 Year CAGR 2014-2019) GLA Sales PSM Total Rent responding to SQM Growth Growth customer demand Why Data? Dining 3.0% 5.3% Data driven culture – using digital technology and Health & Beauty 5.3% 7.6% data to create value, drive
Slide 31: Retail Melbourne Central Development
Retail Melbourne Central Development #1 MOST PRODUCTIVE SHOPPING CENTRE IN AUSTRALIA1 5.7% pa MARKET GROWTH FORECAST (2020-2029)2 Artists impression Artists impression + Approx. $70 million - 7,000sqm of retail, focused on entertainment, dining and leisure + Approval received for Development Applica
Slide 32: Retail Rouse Hill Development
Retail Rouse Hill Development 7.6% pa SALES PRODUCTIVITY GROWTH (2017-2019) 6.1% pa MARKET GROWTH FORECAST (2020-2029)1 Artists impression Artists impression + Approx. $200 million - 20,000sqm of retail and commercial space + Residential integrated within retail scheme and adjacent to existing asset
Slide 33: Funds Management
Funds Management Annual Result 2019 Darling Park, Sydney
Slide 34: Funds Management Highlights
Funds Management Highlights Funds Management Financial Summary ($M) $ 13.3B ASSETS UNDER 5.6% AUM GROWTH 8.7% FFO Segment 2019 2018 CHANGE MANAGEMENT GROWTH Result 46.3 42.6 8.7% Key Highlights + GWSCF continued its asset recycling strategy with the sale of Norton 2010 2019 Plaza for $153 million +
Slide 35: GWOF - $2 Billion Development Pipeline
GWOF - $2 Billion Development Pipeline Artists impression Artists impression Artists impression Corner of George & Bathurst, Sydney Queen & Collins, Melbourne 51 Flinders Lane, Melbourne GWOF Indicative Timing GWOF Asset Ownership Spend share 2019 2020 2021 2022 2023 2024 2025 Queen & Collins, Melbo
Slide 36: Summary & Outlook
Summary & Outlook Market Outlook Group Outlook + Recovery in residential sector, low interest rates and + 2020 income growth underpinned by structured rental on-going infrastructure spend expected to support growth across the portfolio, high occupancy and lower economic growth interest rates + GPT’s
Slide 37: Disclaimer
Disclaimer The information provided in this presentation has been prepared by The GPT Group comprising GPT RE Limited (ACN 107 426 504) AFSL (286511), as responsible entity of the General Property Trust, and GPT Management Holdings Limited (ACN 113 510 188). The information provided in this presenta