Gdi Property Group · ASX:GDI
Gdi Property — FY2018 Earnings Presentation
32 slides from Gdi Property's earnings presentation, Aug 20, 2018
Slide 1: GDI Property Group Annual results presentation
For personal use only GDI PROPERTY GROUP Annual results presentation 20 August 2018
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
For personal use only INTRODUCTION LINKING EQUITY MILL GREEN, TO PERFORMANCE PERTH 2
Slide 4: Overview
Overview For personal use only FFO of 8.40 cents per Distribution of 7.75 cents per NTA – $1.18 per security security security Securityholder return in FY18 Absolute Total Return in Loan to value ratio on Principal of 33.41% FY18 of 12.28% Facility of 8.9% LINKING EQUITY TO PERFORMANCE 3
Slide 5: Operational highlights
Operational highlights… Transactions Sold 66 Goulburn Street, Sydney, for $252.0 million, having bought it for $136.0 million in July 2014 For personal use only Bought Westralia Square, 141 St Georges Terrace, Perth, for $216.3 million, or $6,626/sqm, heavily weighting the wholly owned portfol
Slide 6: …leads to financial success
…leads to financial success NTA1 of $1.18 per security Absolute total return For personal use only of $0.06 on 30 June 2017 NTA per security of $1.12 20% Significant increase in Westralia Square (+$38.75 million), profit on 18% sale of 66 Goulburn Street, Sydney (+$5.0 million) and valuation g
Slide 7: Financial results
For personal use only FINANCIAL RESULTS LINKING 6 SUNRAYEQUITY DRIVE,TO PERFORMANCE INNALOO 6
Slide 8: Contributors to FFO and AFFO
Contributors to FFO and AFFO Property Division FFO in line with smaller portfolio June 18 June 17 For personal use only At the commencement of FY17, wholly owned portfolio was valued at $’000 $’000 $812.0 million compared to $664.2 million at 30 June 2018 Property Division FFO1 48,506 53,715 W
Slide 9: Balance sheet remains in a strong position
Balance sheet remains in a strong position Jun-18 Jun-17 Pro forma for post balance sheet events $'000 $'000 For personal use only Current assets Cash and cash equivalents GDI No. 42 Office Trust 22,361 23,113 Trade and other receivables - Ashfield property 2,892 3,122 Non-current assets held for sa
Slide 10: Debt profile and interest rate hedging
Debt profile and interest rate hedging As at 30 June 2018, drawn debt on the Principal Facility of $59.4 million Amended Board hedging policy to give management more flexibility around hedging, particularly when drawn debt is <$100.0 million Undrawn debt of $55.6 million to fund working capita
Slide 11: The property portfolio
For personal use only THE PROPERTY PORTFOLIO LINKING 235 EQUITY STANLEY TO PERFORMANCE STREET, TOWNSVILLE 10
Slide 12: Portfolio overview
Portfolio overview For personal use only LINKING EQUITY TO PERFORMANCE 11
Slide 13: For personal use only
12 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 14: Perth market
Perth market Vacancy by grade – Perth CBD ANZ/Property Council Survey – Business confidence survey For personal use only Jan 2018 July 2018 Change Sqm Premium 6.4% 4.1% 2.2% 14,681 A Grade 18% 17.7% 0.3% 128,573 B Grade 31.1% 31.6% 0.5% 151,743 C Grade 22.7% 22.9% 0.2% 46,225 D Grade 31.6% 18.7% 12.
Slide 15: Westralia Square
Westralia Square Settled the acquisition of Westralia Square on 27 October Key metrics as at: Jun-18 Dec-17 2017 For personal use only Independent valuation date Jun-18 Oct-17 Immediately commenced work on refurbishing the vacant Level 7 to create a show floor which is currently Independent valu
Slide 16: Westralia Square – unlocking the value of excess land
Westralia Square – unlocking the value of excess land DA for bespoke ~3,300sqm office building on excess land to be lodged imminently For personal use only Can be leased as a stand alone building with 1,100sqm floor plates, or integrated in to levels 1,2 and 3 of Westralia Square creating ~2,900
Slide 17: St Georges Terrace, Perth
197 St Georges Terrace, Perth By taking a patient approach to leasing vacant space Key metrics as at: Jun-18 Jun-17 achieving effective rents in excess of market and most For personal use only recent valuation Independent valuation date Dec-17 Dec-16 Former Chevron training rooms (Ground and Mez
Slide 18: Mill Street, Perth
5 Mill Street, Perth 5 Mill Street now fully occupied Key metrics as at: Jun-18 Jun-17 Achieved outstanding results from small (<200sqm) For personal use only Independent valuation date Dec-17 Dec-16 fitted out suites Very manageable FY19, FY20 lease expiry profile Independent valuation ($M) 5
Slide 19: Mill Street, Perth
1 Mill Street, Perth Signed a Memorandum of Understanding (MOU) with Lendlease Developments Pty Limited (Lendlease) For personal use only The intention is to partner together to explore the development potential of Mill Green to create a leading commercial and retail precinct in the City of Pert
Slide 20: Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise Capital expenditure program now all but complete Key metrics as at: Dec-17 Jun-17 Having completed the outdoor area, relaunched 50 For personal use only Independent valuation date Dec-17 Jun-17 Cavill Avenue to the community in November 2017 Co working hub be
Slide 21: Stanley Street, Townsville
235 Stanley Street, Townsville ATO has advised that it does not intend to renew its Key metrics as at: Dec-17 Jun-17 lease on expiry For personal use only Independent valuation date Jun-18 Jun-17 DHS currently sub-lease 2,322sqm of the ATO space and have indicated an intention to address this su
Slide 22: Funds business
For personal use only FUNDS BUSINESS LINKING 50 EQUITY CAVILL TO PERFORMANCE AVE, SURFERS PARADISE 21
Slide 23: Funds Management business
Funds Management business Funds Management business FFO of $7.6 million $2.4 million from the establishment of GDI No. 43 Property Trust For personal use only $2.5 million from distributions received from GDI No. 42 Office Trust Highlight for the year was the establishment of GDI No. 43 Prop
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 For personal use only Mount St, Burnie UGL on a sale and leaseback basis with four of Burnie is held fo
Slide 25: Strategy
For personal use only STRATEGY LINKING 6 SUNRAYEQUITY DRIVE,TO PERFORMANCE INNALOO 24
Slide 26: FY19 Goals
FY19 Goals For personal use only Financial To have paid a Substantial increase New or extended distribution of 7.75c in NTA finance facility Significant progress with Business Leasing momentum Property Levels 9 and 10 and 1 Mill St development at Westralia Square majority of highrise following compl
Slide 27: Why GDI Property Group?
Why GDI Property Group? •Delivered an annualised total return since listing of 14.82% p.a. For personal use only Total return focused •This return has been largely crystallised •Demonstrated restraint, but can still uncover acquisitions (Westralia Square and IKEA) •Market capitalisation of +/- $675
Slide 28: Appendix
For personal use only APPENDIX LINKING 235 EQUITY STANLEY TO PERFORMANCE STREET, TOWNSVILLE 27
Slide 29: Profit or Loss
Profit or Loss Group Trust 2018 2017 2018 2017 $'000 $'000 $'000 $'000 For personal use only Revenue from ordinary activities Property revenue 70,875 68,448 70,875 68,448 Funds management revenue 4,710 3,285 - - Interest revenue 436 345 402 218 Other income - 7 - 7 Total revenue from ordinary activi
Slide 30: NPAT to AFFO
NPAT to AFFO Group 2018 2017 For personal use only $'000 $'000 Total comprehensive income for the year 75,761 107,316 Acquisition expenses and discontinued acquisitions 11,802 407 Contribution resulting from consolidation of GDI No. 42 Office Trust (6,972) (5,864) Distributions / funds management fe
Slide 31: Property by property information
Property by property information FY19 FY18 FY17 FY 18 "As is" For personal use only $m $m $m $m Property Incentives AIRFS AIRFS Capex Maintenance and Lease FFO NPI1 FFO NPI1 FFO spent Capex spent costs 1 Mill Street (0.6) - - - 5 Mill Street 3.7 0.2 0.8 197 St Georges Terrace 14.1 2.6 0.9 Mill Green
Slide 32: For personal use only
For personal use only LINKING EQUITY TO PERFORMANCE 31