Gdi Property Group · ASX:GDI
Gdi Property — H1 FY2019 Earnings Presentation
33 slides from Gdi Property's earnings presentation, Feb 18, 2019
Slide 1: Half yearly results presentation
GDI PROPERTY GROUP Half yearly results presentation 18 February 2019
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
INTRODUCTION LINKING EQUITY MILL GREEN, TO PERFORMANCE PERTH 2
Slide 4: Introduction
Introduction NTA1 of $1.21 per security Substantial progress on asset management strategies of $0.03 on 30 June 2018 NTA per security of $1.18 Leasing successes at 197 St Georges Terrace, Perth (90.1% occupied, up from 77.0% at 30 June 2018) Valuation increases in Mill Green, Perth (+$8.9
Slide 5: Financial Results
FINANCIAL RESULTS LINKING 6 SUNRAYEQUITY DRIVE,TO PERFORMANCE INNALOO 4
Slide 6: Contributors to FFO and AFFO
Contributors to FFO and AFFO Property Division FFO higher than previous corresponding period due Dec 18 Dec 17 largely to Westralia Square being held for the full period $’000 $’000 Westralia Square returning over 12% p.a. on its acquisition price with Property Division FFO 26,525 23,255 no expi
Slide 7: Balance sheet remains in a strong position
Balance sheet remains in a strong position Dec-18 Jun-18 Pro forma for post balance sheet events $'000 $'000 Current assets Cash and cash equivalents GDI No. 42 Office Trust 10,581 22,361 Trade and other receivables - Ashfield property 3,919 2,892 Non-current assets held for sale 43,110 43,110 Other
Slide 8: Debt profile and interest rate hedging
Debt profile and interest rate hedging As at 31 December 2018, drawn debt on the Principal Facility of $59.4 Last hedge from GDI Property Group’s IPO expired in December 2018 million Current intention is to remain unhedged, particularly when LVR on the Undrawn debt of $55.6 million to fund w
Slide 9: The Property Portfolio
THE PROPERTY PORTFOLIO LINKING EQUITY 235 STANLEY TO PERFORMANCE STREET, TOWNSVILLE 8
Slide 10: Portfolio overview
Portfolio overview LINKING EQUITY TO PERFORMANCE 9
Slide 11: Perth property map
10 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 Forrest Centre 225 SGT LINKING EQUITY TO PERFORMANCE Old Woodside Perth CBD QV1 (Chevron) New Woodside
Slide 12: Perth market
Total Persons Employed (000) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 1,240 1,260 1,280 1,300 1,320 1,340 1,360 2007 Dec-2013 2008 2009 Apr-2014 Source: JLL Research Source: JLL Research 2010 Aug-2014 2011 2012 Dec-2014 2013 Apr-2015 Perth market 2014 Aug-2015 2015 LINKING EQUITY TO PERFORMANCE 2016
Slide 13: Westralia Square
Westralia Square Completed the fit out of the only vacant floor, Level 7, as a show floor for future leasing Key metrics as at : Dec-18 Jun-18 Fit out can be viewed at https://vimeo.com/301530637 (1) Independent valuation date Jun-18 Jun-18 Commenced upgrade of the lifts, end of trip facilitie
Slide 14: Westralia Square – Lobby refurbishment and Level fitout
Westralia Square – Lobby refurbishment and Level 7 fitout Lobby – front Lobby – back Amenities Reception – Level 7 Work stations – Level 7 Breakout room – Level 7 Kitchen – Level 7 Reception – Level 7 Views from Level 7 LINKING EQUITY TO PERFORMANCE 13
Slide 15: 197 St Georges Terrace, Perth
197 St Georges Terrace, Perth Majority of vacancies resulting from the departures of Clough Projects (May 17), Chevron (Sept 17), A.E.M.O (Sept 17) Key metrics as at : Dec-18 Jun-18 and Aker Solutions (Feb 18) now either leased or subject to Independent valuation date Dec-18 Dec-17 heads of agreem
Slide 16: 197 St Georges Terrace, Perth
197 St Georges Terrace, Perth Our patient approach to leasing the vacancies arising in FY17 and FY18 has resulted in effective rents at levels higher than would have been achieved if occupancy was GDI Property Group’s primary objective FY17 and FY18 expiries As at February 2019 24 AKER SOLUTIONS (Fe
Slide 17: 5 Mill Street, Perth
5 Mill Street, Perth Very manageable lease expiry profile, with only two suites Key metrics as at : Dec-18 Jun-18 vacant as at 31 December 2018 Given the success of the leasing the property we do not Independent valuation date Dec-18 Dec-17 anticipate these suites being vacant for long Independe
Slide 18: 1 Mill Street, Perth
1 Mill Street, Perth Not looking at any immediate long term leasing of 1 Mill Key metrics as at : Dec-18 Jun-18 Street, Perth given both the time of the cycle and its redevelopment opportunities. Independent valuation date Dec-18 Dec-17 Continuing to work with Lendlease Developments Pty Limited,
Slide 19: 50 Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise Occupancy increased to 98.34% (up from 97.59%) with now Key metrics as at : Dec-18 Jun-18 only one suite remaining vacant Significantly increasing effective rents on new leases and Independent valuation date Dec-18 Dec-17 renewals Independent valuation ($M) 100
Slide 20: Adding value at 50 Cavill Avenue, Surfers Paradise
Adding value at 50 Cavill Avenue, Surfers Paradise February 2016 February 2019 21 21 20 20 19 19 18 18 17 17 16 16 15 15 14 14 13 13 12 12 11 11 10 10 9 9 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 G G Cash paid = $49.2 million Cash spent = $17.6 million Now worth = $100.0 million LINKING EQUITY TO PERFORMANCE
Slide 21: 235 Stanley Street, Townsville
235 Stanley Street, Townsville Australian Taxation Office (ATO) advised that it would Key metrics as at : Dec-18 Jun-18 not be renewing its lease on expiry in February 2020 Of the 7,440sqm leased to ATO, 2,322sqm is sub Independent valuation date Jun-18 Jun-18 leased to Department of Human Servi
Slide 22: Funds Management Business
FUNDS MANAGEMENT BUSINESS LINKING 50 EQUITY CAVILL TO PERFORMANCE AVE, SURFERS PARADISE 21
Slide 23: Funds Management business
Funds Management business Funds Management business FFO before income tax expense of $2.58 million for the period $1.25 million of distributions received from GDI No. 42 Office Trust $1.33 million of management fees No transactional fees in the period Highlight for the period was the sale
Slide 24: Funds Management business
Funds Management business GDI No. 27 Total Return Fund GDI No. 38 Diversified Property Trust Originally a three asset fund, now only owns 46 Originally a seven asset portfolio purchased from Mount St, Burnie UGL on a sale and leaseback basis with four of Burnie is held for sale with expectatio
Slide 25: Strategy and Outlook
STRATEGY AND OUTLOOK LINKING 6 SUNRAYEQUITY DRIVE,TO PERFORMANCE INNALOO 24
Slide 26: FY19 strategy and outlook
FY19 strategy and outlook Significant upside in portfolio of wholly owned and managed assets that can deliver a total return of in excess of 12.0%p.a. on a rolling three year basis off an extremely conservative capital structure Releasing Westralia Square, Perth Development of bespoke building
Slide 27: Why GDI Property Group?
Why GDI Property Group? •Delivered an annualised total return since listing of 14.83% p.a. Total return focused •This return has been largely crystallised •Demonstrated restraint, but can still uncover acquisitions (Westralia Square and IKEA) •Market capitalisation of +/- $725 million Size matters •
Slide 28: Distribution policy
Distribution policy GDI Property Group aims to deliver a consistent 12.0%p.a. total return, Distribution vs FFO vs AFFO measured both annually and on a three year rolling basis 60.0 Total return is measured as NTA growth + distributions In theory, the total return could be either all distribut
Slide 29: Appendix
APPENDIX LINKING 235 EQUITY STANLEY TO PERFORMANCE STREET, TOWNSVILLE 28
Slide 30: Profit or Loss
Profit or Loss Group Trust 2018 2017 2018 2017 Half year ended 31 December $'000 $'000 $'000 $'000 Revenue from ordinary activities Property income 37,751 33,109 37,771 33,109 Funds management income 1,144 918 - - Interest income 111 139 105 112 Profit on sale of non-current asset - 5,040 - 5,040 Ot
Slide 31: NPAT to FFO
NPAT to FFO Group 31 December 2018 31 December 2017 $'000 $'000 Total comprehensive income for the year 39,489 19,837 Acquisition expenses and discontinued acquisitions 7 11,784 Contribution resulting from consolidation of GDI No. 42 Office Trust (4,211) (3,089) Distributions / funds management fees
Slide 32: Property by property information
Property by property information Dec 18 Dec 17 Period ended 31 December 2018 $m $m $m Maintenance Incentives and Property AIRFS NPI1 FFO AIRFS NPI1 FFO Capex spent Capex spent Lease costs 1 Mill Street - - - 5 Mill Street 0.1 0.4 197 St Georges Terrace 0.8 0.5 Mill Green, Perth 8.3 9.6 10.13 11.15 0
Slide 33: Linking equity to performance
LINKING EQUITY TO PERFORMANCE 32