GARDA Property Group · ASX:GDF
GARDA Property — GARDA Diversified Property Fund — Shareholder Meeting (November 2016)
30 slides from GARDA Property's shareholder meeting presentation, Nov 18, 2016
Slide 1: 2016 AGM Chairman's Address and Presentation
ASX Announcement / Media Release GARDA Diversified Property Fund (GDF) 18 November 2016 GARDA Diversified Property Fund For personal use only 2016 AGM Chairman’s Address and Presentation Good morning Ladies and Gentlemen, it is 9:30am and as there is a quorum present, I declare this meeting open. We
Slide 2: Chairman's Address (continued)
GARDA continued to mitigate lease expiry risk for the Fund, and executed new leases and existing renewals representing approximately 10.5% of the portfolio’s net lettable area. The leases executed kept the WALE at a relatively stable 3 years. Over the year your Directors oversaw diligent capital man
Slide 3: GARDA Diversified Property Fund Annual General Meeting
GARDA DIVERSIFIED PROPERTY FUND (GDF) For personal use only ANNUAL GENERAL MEETING 18 NOVEMBER 2016
Slide 4: Important Information
IMPORTANT INFORMATION This presentation (Presentation) has been prepared on behalf of GARDA Capital Limited (ACN 095 039 366) (AFSL 246714) (GARDA) as responsible entity of the GARDA Diversified Property Fund (GDF or the Fund). The information and statements in this Presentation were prepared or are
Slide 5: Agenda
AGENDA For personal use only 1 CHAIRMAN’S WELCOME AND INTRODUCTION 2 BOARD OF DIRECTORS 3 MANAGING DIRECTOR’S ADDRESS 4 QUESTIONS 5 BUSINESS OF THE MEETING 3 | GARDA DIVERSIFIED PROPERTY FUND | ANNUAL GENERAL MEETING
Slide 6: Board of Directors
BOARD OF DIRECTORS For personal use only DAVID USASZ, INDEPENDENT CHAIRMAN MATTHEW MADSEN, MANAGING DIRECTOR MARK HALLETT, NON-EXECUTIVE DIRECTOR PHILIP LEE, NON-EXECUTIVE DIRECTOR LEYLAN NEEP, EXECUTIVE DIRECTOR 4 | GARDA DIVERSIFIED PROPERTY FUND | ANNUAL GENERAL MEETING
Slide 7: Managing Director's Address
MANAGING DIRECTOR’S For personal use only ADDRESS
Slide 8: FY Highlights
INSERT FY 16 - HIGHLIGHTS TITLE HERE For personal use only 93.6% STATUTORY NET PROFIT FUNDS FROM OPERATIONS DISTRIBUTIONS $17.86m $9.1m $8.5m PAYOUT RATIO 19.04 cents per unit 9.68 cents per unit 9.00 cents per unit $12.45m (8.9%) $0.10 (10%) VALUATION INCREASE INCREASE IN NTA PER UNIT TO $1.13 Tota
Slide 9: FY16 Performance
FY16 - PERFORMANCE For personal use only FY2016 PER UNIT $ (93,804,456 UNITS ON ISSUE) Statutory net profit 17,864,000 19.04 cents Less fair value movement in investment properties (10,093,000) Add Interest rate swaps marked to market 1,127,000 Add Other 178,000 Funds from operations (FFO) 9,076,000
Slide 10: Property Valuations Increase
PROPERTY VALUATIONS INCREASE For personal use only 2015 2016 2016 INCREASE INVESTMENT PROPERTIES $ CAP RATE $ % 7-19 Lake Street, Cairns 37,000,000 8.50% 42,200,000 14.05% 12-14 The Circuit, Brisbane Airport 20,000,000 8.60% 22,400,000 12.00% B2, 747 Lytton Road, Murarrie 13,600,000 8.39% 14,100,000
Slide 11: ASX Performance
ASX PERFORMANCE For personal use only • GDF performance since listing against the S&P/ASX 200 A-REIT and S&P/ASX 300 AREIT indices. GDF.ASX XPJ.ASX XPK.ASX 125% 120% 115% 110% 105% 100% 95% 90% 85% 02/07/15 01/10/15 05/01/16 08/04/16 12/07/16 11/10/16 9 | GARDA DIVERSIFIED PROPERTY FUND | ANNUAL GEN
Slide 12: Debt Overview
DEBT OVERVIEW The total interest cost of the drawn facilities is 3.55%. For personal use only • SENIOR DEBT FACILITY Drawn Limit • Balanced between fixed ($45.6m) and floating ($34m) facilities. Senior Debt $79.6m $83.6m • Currently LVR of 43.6%. SENIOR DEBT FACILITY - COVENANTS POST ACQUISITION Act
Slide 13: Acquisition (August 2016)
ACQUISITION (AUGUST 2016) • On 26 August 2016, GDF settled the acquisition of a modern industrial distribution facility for $29.5 million. For personal use only • It has been acquired on an initial yield of 7.7%¹ • The property is wholly leased to Wesfarmers subsidiary Blackwoods until 2029, providi
Slide 14: Fund Objectives
FUND OBJECTIVES For personal use only • The Fund’s objective is to provide sustainable and growing distributable income derived from investments in commercial offices in city and suburban markets as well as industrial facilities along the eastern seaboard of Australia. • The Fund will maintain a con
Slide 15: FY2017 Outlook and Distribution Guidance
FY2017 OUTLOOK AND DISTRIBUTION GUIDANCE DISTRIBUTIONS For personal use only • FY2017 distribution guidance of $0.094 per unit, a 4.4% increase on FY2016 distributions. • Represents a payout ratio of ~84% at 42% LVR after the recent Blackwood’s acquisition. • At current market price of $1.001, refle
Slide 16: Appendix: Financials
For personal use only APPENDIX 1 FINANCIALS
Slide 17: Income Statement
INCOME STATEMENT For personal use only • A net profit of $17.9 million was generated during 30 JUNE 2016 30 JUNE 2015 the year, an increase of $24.2 million compared to INCOME STATEMENT $000’S $000’S prior year (before recapitalisation and ASX listing) Property rental income 17,106 17,434 loss of $6
Slide 18: Funds From Operations (FFO)
FUNDS FROM OPERATIONS (FFO) For personal use only • FFO of $9.1 million was generated during the FUNDS FROM OPERATIONS period representing an increase of $8.6 million from the prior year (2015: $0.5 million). 30 JUNE 2016 30 JUNE 2015 $000’S $000’S • The increase in FFO is a result of a decrease in
Slide 19: Balance Sheet
BALANCE SHEET For personal use only • Net tangible assets for the year ended 30 June 30 JUNE 2016 30 JUNE 2015 BALANCE SHEET 2016 are $1.130 per unit, an increase of $0.102 $000’S $000’S per unit on prior year NTA per unit of $1.028. Assets • The portfolio delivered a $12.45 million increase Cash an
Slide 20: Appendix: GDF Overview
For personal use only APPENDIX 2 GDF OVERVIEW
Slide 21: GDF at a Glance
GDF AT A GLANCE $183 MILLION For personal use only COMMERCIAL AND INDUSTRIAL PORTFOLIO ~ $100 MILLION MARKET CAPITALISATION 93% $1.11 1 FY17 DISTRIBUTION 3.9 YEARS GUIDANCE WALE OCCUPANCY NTA PER UNIT $0.094/UNIT PAID QUARTERLY 8.13% 43.6% 4.5 TIMES 53% WEIGHTED AVERAGE TAX DEFERRED CAP RATE LVR INT
Slide 22: Diversified Portfolio
DIVERSIFIED PORTFOLIO PORTFOLIO INCOME (by location) For personal use only Melbourne 30% Brisbane 26% CAIRNS 7-19 Lake Street, Cairns ($42.2m) MACKAY 69-79 Diesel Drive, Mackay ($29.5m) Gold Coast 7% BRISBANE Mackay 12% Cairns 25% GOLD COAST 747 Lytton Road, Murarrie ($14.1m) 12-14 The Circuit, Airp
Slide 23: WALE and Occupancy
WALE AND OCCUPANCY • Significant improvement in WALE possible during FY17 as material tenant expiry is managed particularly at the Richmond property For personal use only (FY18 expiry) and in Cairns (FY19 expiry). WALE by income (Years) Oct 16 Oct 16 12.3 12.3 3.9 2.7 3.2 3.9 2.7 2.3 3.1 3.2 2.8 2.5
Slide 24: At Risk Income
AT RISK INCOME For personal use only • Leasing risk in FY17 has been mitigated following the commitment of Kuhne Nagel for their existing 2,200m2 tenancy at the Lytton industrial property. • Heads of agreement for this renewal has now been reached. • The Manager has engaged with a number of key tena
Slide 25: Questions?
For personal use only QUESTIONS?
Slide 26: Business of the Meeting
BUSINESS OF THE MEETING For personal use only
Slide 27: Business of the Meeting
BUSINESS OF THE MEETING For personal use only 1 FY16 FINANCIAL STATEMENTS AND REPORT RESOLUTION 1 2 Approval of Additional 10% Placement Capacity 25 | GARDA DIVERSIFIED PROPERTY FUND | ANNUAL GENERAL MEETING
Slide 28: FY16 Financial Statements and Report
1. FY16 FINANCIAL STATEMENTS AND REPORT To receive and consider the Annual Financial Report and Financial Statements, the Directors’ Report and Auditor’s Report for For personal use only GARDA Diversified Property Fund for the financial year ended 30 June 2016. STATEMENT OF FINANCIAL POSITION STATEM
Slide 29: Resolution - Approval of Additional 10% Placement Capacity
2. RESOLUTION 1 - Approval of Additional 10% Placement Capacity To consider, and if thought fit, pass the following as a special resolution: For personal use only “That, for the purposes of ASX Listing Rule 7.1A and for all other purposes, approval is given for the issue of up to an additional 10% o
Slide 30: GARDA Diversified Property Fund Annual General Meeting
For personal use only GARDA DIVERSIFIED PROPERTY FUND ANNUAL GENERAL MEETING | 18 NOVEMBER 2016
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