Goodman New Zealand Limited & Goodman Property Services Limited Units · NZX:GNZ
Goodman New Zealand Limited & Goodman Property Services Limited Units — Goodman Property Trust — H1 FY2015 Earnings Presentation
30 slides from Goodman New Zealand Limited & Goodman Property Services Limited Units's earnings presentation, Nov 12, 2014
Slide 1: GMT interim result to 30 September 2014
GMT interim result+ to 30 September 2014 12 November 2014 Air New Zealand, the Fonterra development and the Vodafone Building
Slide 2: Contents
contents+ 01 delivering on strategy+ 02 Viaduct Quarter+ 03 financial result+ 04 investment portfolio+ 05 development portfolio+ 06 outlook+ Murray Barclay, General Manager Property Services , Goodman, with David Gell, Property Asset Manager, Bridgestone New Zealand Ltd
Slide 3: Delivering on strategy
01 delivering on strategy+ Michael Gimblett, Goodman Development Manager and Andrew Rolf, Fletcher Construction Project Manager on the Fonterra construction site.
Slide 4: Delivering on strategy
01 delivering on strategy+ A growing economy is continuing to generate strong customer demand for high quality, well located business space. The strategy of the Trust has been refined to take advantage of these conditions with a range of new initiatives being implemented, they include Accelerated de
Slide 5: Viaduct Quarter
02 Viaduct Quarter+ Fonterra under construction and the Vodafone building
Slide 6: Viaduct location
02 Viaduct location+ 6
Slide 7: Viaduct joint venture
02 Viaduct joint venture+ + Viaduct Quarter identified as key area of commercial growth in Auckland's unitary plan + Location and asset class is consistent with GMT’s investment strategy, $235 million already committed + Some of the Trust’s strongest performing office assets over the last 10 years +
Slide 8: Viaduct joint venture
02 Viaduct joint venture+ + The existing joint venture partner disposed of its interests in the Vodafone, KPMG, Microsoft and HP buildings at March 2014 valuations + The Air New Zealand building, which was originally acquired by GMT in 2006 for $55.0 million, is being sold into the joint venture at
Slide 9: Viaduct joint venture
02 Viaduct joint venture+ + Mandate to grow to around $500 million over time + New opportunities will require GNZ Board approval + Investing in high quality, campus style office properties, occupied by major customers on long term leases + Investment hurdles of the joint venture are aligned with the
Slide 10: Financial result
03 financial result+ Bridgestone New Zealand Ltd at Glassworks Industry Park, Christchurch
Slide 11: Financial result
03 financial result+ + Net rental income increased 4.9% to $66.2 million + Distributable earnings before tax1 of $55.5 million or 4.53 cpu (4.18 cpu in pcp) Earnings + Distributable earnings after tax1 of $52.4 million or 4.28 cpu (3.78 cpu in pcp) and Profit + $65.3 million before tax profit compar
Slide 12: Financial performance
03 financial performance+ 6 months ended 30 Sep 2014 30 Sep 2013 Change $m $m % Net rental and related income 66.2 63.1 4.9 Gain on disposal of property investments 4.3 - - Unrealised movement in fair value of property investments 13.7 6.1 124.4 Movement in fair value of derivative financial instrum
Slide 13: Financial position
03 financial position+ as at 30 Sep 2014 31 Mar 2014 Change $m $m % Total assets 2,196.8 2,118.3 3.7 Property assets 2,120.1 2,039.8 3.9 Net borrowings1 787.9 734.2 (7.3) Total liabilities 908.3 852.7 (6.5) Equity 1,288.5 1,265.6 1.8 Loan to Value (%)2 36.5 36.0 NTA per unit (cpu) 3 102.1 100.4 1.7
Slide 14: Capital management
03 capital management+ + Active capital management programme: – Disposal of $64.21 million of assets to fund development – Suspension of the Distribution Reinvestment Plan – Seek to maintain funding diversity + Strong balance sheet position: – 36.5%2 loan to value ratio at the bottom of the Board’s
Slide 15: Capital management
03 capital management+ + Currently 70.5%1 hedged with an average remaining term of 3.4 years across its swap book + $600 million refinancing of the Trust’s main facility in October 2014 with syndicate extended to include HSBC + Weighted remaining term of GMT bank facility now 3.5 years Debt faciliti
Slide 16: Investment portfolio
04 investment portfolio+ Panasonic, Highbrook Business Park DHL Warehouse, Glassworks Industry Park, Christchurch
Slide 17: Investment portfolio
04 investment portfolio+ + Over 71,000 sqm of space secured on new or revised terms + WALT of 5.5 years + Average occupancy of around 97% + Occupancy 97% at 30 September 2014 Look through net property income bridge1 H1 FY14 to H1 FY15 75.0 1.2 69.2 70.0 3.3 66.0 3.0 65.0 3.0 66.2 (1.3) 63.0 60.0 55.
Slide 18: Key leasing deals
04 key leasing deals+ +Customer Over 35,000 sqm of vacant Estate space leased as part of Project Big Footprint NLA Turners Penrose Industrial Estate 15,200 sqm DSL Logistics Westney Industry Park 7,700 sqm Mainfreight Highbrook Business Park 6,700 sqm Kmart M20 Business Park 5,400 sqm YOUI Central P
Slide 19: Asset sales programme
04 asset sales programme+ + Disposal of six assets for $64.2 million1 at an average exit yield of 7.25% + $136 million of sales in the last 2.5 years + Sales to continue to fund new development activity $26.2 m $16.4 m Carter Holt Harvey $7.2 m $7.1 m SMEC NZ House Placemakers Big Chill 19 1. Includ
Slide 20: Development activity
05 development activity+ Genesis Building, Central Park
Slide 21: Development activity
05 development activity+ + $77.9 million of new development commitments yielding 8.0% + Three new warehouse developments at Highbrook including facilities for Ford and Steel & Tube + New 10,503 sqm facility for Steel & Tube at Savill Link + New car park building at Central Park to meet customer dema
Slide 22: Highbrook Business Park developments
05 Highbrook Business Park developments+ 22 Indicative illustration of development activity under way at Highbrook Business Park, Auckland
Slide 23: Central Park Corporate Centre developments
05 Central Park Corporate Centre developments+ 23 Indicative illustration of development activity under way at Central Park Corporate Centre Auckland
Slide 24: Development update
05 development update+ + New Developments – Commencement of over 36,836 sqm1 of new development projects - Total project cost of around $77.9 million - Forecast yield on cost of 8.0% + Land weighting of 10.5%2 at 30 September 2014 GMT development activity FY15 36,836 FY14 59,738 FY13 48,218 FY12 49,
Slide 25: Development completions
05 development completions+ Highbrook Business Park Highbrook Business Park Customer Pelikan Artline Customer Mainfreight NLA1 2,805 sqm NLA1 6,676 sqm WALT 9 years WALT 6 years Valuation $4.1m Valuation $11.4m Market Cap Rate 6.75% Market Cap Rate 6.75% 25 1. Net lettable area (net of canopies and
Slide 26: Development completions
05 development completions+ Glassworks Industry Park Glassworks Industry Park Customer MOVE Logistics Customer DHL NLA1 5,817 sqm NLA1 6,708 sqm WALT 8 years WALT 5 years Valuation $11.1m Valuation $13.0m Market Cap Rate 7.00% Market Cap Rate 7.13% 26 1. Net lettable area (net of canopies and yard)
Slide 27: Outlook
06 outlook+ Pelikan Artline, Highbrook Business Park
Slide 28: Outlook and summary
06 outlook and summary+ + Active strategy + Continuation of the Trust’s accelerated development programme Strategy + Asset disposals will fund new development activity + Focus on maximising portfolio rental streams + Strongly aligned capital partner New Joint + Focus on high quality, campus style of
Slide 29: Thank you
thank you+ Show Place Office Park, Addington, Christchurch
Slide 30: Distributable earnings
appendix distributable earnings+ Distributable earnings is an alternative performance measure used to assist investors in assessing the Trust’s underlying operating performance. For the six months ended 30 Sep 2014 30 Sep 2013 $m $m Profit after tax 60.2 65.4 Gain on disposal of property investments
Goodman Property Trust — H1 FY2015 Earnings Presentation on 6ix