Slide 1: Results for the year ended 30 June 2009
For personal use only Goodman Group Results for the year ended 30 June 2009 28 August 2009
Slide 2: Important notice and disclaimer
Important notice and disclaimer For personal use only + This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL Number 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839)). Th
Slide 3: Contents
Contents For personal use only + Section 1 Introduction + Section 2 Results overview + Section 3 Market overview + Section 4 Summary + Appendices 3
Slide 4: Section 1 Introduction
For personal use only Section 1+ Introduction Anagni Industrial Estate, Italy
Slide 5: Introduction: FY09 result consistent with strategic initiatives
Introduction For personal use only + FY09 result consistent with announcement of strategic initiatives on 6 August 2009 + Underlying fundamentals remain sound – Customer occupancy remains high at 94% across the Group and its managed Funds – Sufficient enquiry for new developments ($1.5 billion of gr
Slide 6: Recent initiatives recap
Recent initiatives recap For personal use only + As announced on 6 August 2009, Goodman has successfully implemented a series of initiatives that significantly strengthen its platform Group capital + $1.3 billion raised via a fully underwritten institutional placement and 1 for 1 non-renounceable en
Slide 7: Group business model and outlook
Group business model and outlook For personal use only + Goodman will continue to focus on its core business of owning, developing and managing industrial property – Significant opportunities to consolidate the business within existing Asia Pacific and European markets where Goodman has a strong pre
Slide 8: Section 2 FY09 results
For personal use only Section 2+ FY09 results Venlo North Logistics Centre, The Netherlands
Slide 9: FY09 results – profit and loss
FY09 results – profit and loss For personal use only 30 June 2009 income statement + Full year operating profit of $408.1 million – $0.9 billion in pre-committed development projects were FY08A FY09A $m $m withdrawn as a means of capital rationalisation Investment 449 534 – Withdrawal from projects
Slide 10: FY09 results – balance sheet
FY09 results – balance sheet For personal use only + $1.2 billion reduction in aggregate asset valuations for FY09 30 June 2009 balance sheet (pre initiatives) 30 June 2008 30 June 2009 + Adverse FX and interest rate movements have led to a $0.2 $m $m billion derivatives mark to market liability pos
Slide 11: Pro forma balance sheet
Pro forma balance sheet For personal use only + $1.8 billion equity raising ($2.0 billion post the exercise of options) and the joint venture with CPPIB significantly reduces Group leverage Upfront Options initiative 30 June 2009 conversion 30 June 2009 30 June 2009 adjustments (pro forma) adjustmen
Slide 12: Capitalisation rates
Capitalisation rates For personal use only + Liquidity starting to return to the market + Less property being offered for sale + Asset markets stabilising – Australia - $237 million Sold at a premium to book of 8.0% on a yield of 8.2% – Europe – $305 million Sold at a premium to book of 4.0% on a yi
Slide 13: Section 3 Market overview
For personal use only Section 3+ Market overview Highbrook, New Zealand
Slide 14: Leasing
Leasing For personal use only + Maintain close customer contact + Low propensity for customers to re-locate leading to less “churn” costs + Minimal new supply keeping vacancy low + Minimal rental arrears (less than 0.4%) + New Rents struck inline with passing rents (+0.1%) Division Leasing Area Net
Slide 15: Developments
Developments For personal use only + Pre-lease opportunities still exist – 872,051 sqm of shortlisted enquiries + Less competitive market + Pre-funded / pre-leased developments + Attractive risk-adjusted returns – Higher cap rates – Lower costs – Higher rents FY09 Developments Completions Commitment
Slide 16: Management services
Management services For personal use only + Core funds are in a sound position Business space AUM Third party AUM – Property performance sound (94% occupancy) growth drivers FY09 $ billion – Balance sheets strengthened (42.9% weighted average Open 14.3 gearing) Acquisitions on market 0.7 Acquisition
Slide 17: Funds management - fund summary
Funds management - fund summary For personal use only + Refinancing package provides significant headroom for Goodman’s funds – Weighted average gearing of 42.9%1,2 – Current weighted average cap rate of 7.7%2 – Weighted average cap rate to covenant breach of 10.6% for FY102 + Following summary is a
Slide 18: Section 4 Summary
For personal use only Section 4+ Summary Amazon, Germany
Slide 19: Summary
Summary For personal use only + Full year result achieved in context of market conditions and focus on strengthening our financial position + Property fundamentals resilient and market conditions showing signs of stabilising + Strategic focus on: – Prudent capital management – Leveraging our busines
Slide 20: Appendices
For personal use only Appendices+ M7 Business Hub, Australia
Slide 21: FY09 results – profit and loss
FY09 results – profit and loss For personal use only + FY09 operating profit of $408.11 million + Operating EPS of 17.4 cents and DPS of 9.65 cents Year ended Year ended Increase/ 30 June 2009 30 June 2008 (decrease) Operating earnings per security (cents)1 17.4 34.0 (48.7%) Distribution per securit
Slide 22: FY09 results – profit and loss
FY09 results – profit and loss For personal use only Operating income – FY08 to FY09 47 (37) 567 (32) (209) 31 (6) 408 25 22 FY08 operating Cornerstone Direct income Management Development Unallocated Borrow ing Tax Minorities FY09 operating income income operating costs income expenses (actual) NPA
Slide 23: FY09 results – profit and loss
FY09 results – profit and loss For personal use only GMG results Year ended Year ended Increase / 30 June 2009 30 June 2008 (decrease) $M $M $M Property investment 382.0 370.3 11.7 Management services 226.2 317.7 (91.5) Development 23.9 191.3 (167.4) Operating revenue net of property expenses 632.1
Slide 24: Total income by business segment
FY09 results – profit and loss For personal use only + Total income by business segment for year ended 30 June 2009 Category Total Property Management Realised Unallocated Unrealised investment gains / profit / (loss) / (Losses) Non-operating items $M $M $M $M $M $M Property income 264.3 264.3 Net u
Slide 25: Reconciliation of distribution
FY09 results – reconciliation of distribution For personal use only Category Total Property Management Realised Unallocated Unrealised investment gains / profit / (loss) / (losses) Non-operating items $M $M $M $M $M $M EBIT (965.7) 382.0 130.0 23.9 (32.5) (1,469.1) Unrealised gains/losses on investm
Slide 26: FY09 results – financial position
FY09 results – financial position For personal use only + Headline gearing of 47.9% As at 30 June 2009 Asia Pacific Europe Total $M $M $M Investment properties 2,314.4 1,219.6 3,534.0 Investments in funds 1,852.7 880.7 2,733.4 Other segment assets1 291.4 1,474.2 1,765.6 Cash 242.5 Other assets 307.5
Slide 27: FY09 results – capital allocation
FY09 results – capital allocation For personal use only + Total property investment portfolio $5.6 billion – reduction in directly owned assets $0.1 billion – increase of $0.1 billion cornerstone1, predominately from ABPP asset-for-equity swap – $1.2 billion devaluation of direct property and propor
Slide 28: FY09 results – net tangible assets
FY09 results – net tangible assets For personal use only + Movement in net tangible assets for the year ended 30 June 2009 Net tangible asset reconciliation $M $M Per security1 Net assets at 1 July 2008 4,669.1 2.79 Less: Minority interests (320.6) (0.19) Net assets attributable to security holders
Slide 29: Net tangible asset bridge
FY09 results – net tangible asset bridge For personal use only + For year ended 30 June 2009 $ per security 2.60 (0.67) (0.52) (0.11) (0.04) (0.41) 1.26 0.85 Net assets Equity raising Valuation of non- Change in fair Other movements Net assets Intangibles Net Tangible attributable to current value o
Slide 30: Valuations and asset sales
FY09 results – valuations and asset sales For personal use only + $669 million devaluation of direct properties and proportionate 30 June 2009 property valuations (look through) share of Fund owned properties for 2H FY09 ($1,158 million GMG 2H09 Fund 2H09 Book value WACR for full year) Region moveme
Slide 31: Intangibles and derivatives
FY09 results – intangibles and derivatives For personal use only + A substantially audited review of intangibles valuation has been Intangibles – segment carrying values conducted Adjusted for Book value – Review based on DCF and has resulted in a $33 million write-down Book value acquisitions 30 Ju
Slide 32: Developments
Developments For personal use only + Development & development management (13% of Work in progress $B operating EBIT) Opening 3.1 Completions (2.1) – ROC of 6.4% (profit & fees) Projects Withdrawn (0.9) Commencements 0.5 Closing 0.6 Work In Progress On Balance Sheet Third Party Funds Total End Value
Slide 33: Funds management - AUM
Funds management - AUM For personal use only Assets Under Management + Total assets under management of $14.3 billion (excluding direct assets)1 + Diversified across markets in Australia, New Zealand, Hong Kong, Japan, UK and Europe 1. GMG holds a further $4.2 billion of assets under management on b
Slide 34: Funds management - customers
Funds management - customers For personal use only Top 20 Global Customer Base (Moody’s/S&P) 1. Includes customers of GMG and its managed funds and is based on net rental income 2. Parent company rating adopted for Coles, NYK Logistics and T-Mobile. 34
Slide 35: Capital management – liquidity
Capital management – liquidity For personal use only + Cash and available lines of credit of $308 million at 30 June 2009 Sources and uses of liquidity + Liquidity has been impacted by the following: Sources $m Uses $m Opening liquidity 1,686 Net investing cash flow 1,160 – A$ depreciation, particul
Slide 36: Capital management – currency mix
Capital management – currency mix For personal use only 36
Slide 37: Financial risk management
Financial risk management For personal use only + Financial risk management in line with Group board policy – interest risk management is conservative with: – 78% hedged in the first 12 months – Weighted average hedge maturity of 4.7 years – Weighted average hedge rate of 4.88%1 vs spot2 3.92% – FX
Slide 38: Financial risk management – capital hedging
Financial risk management For personal use only Capital hedging + The Group, historically hedged 100% of its capital investments to mitigate translation risk due to the volatility in foreign exchange rates + Where practical, the Group had funded its international commitments and investments in local
Slide 39: Financial risk management – interest rate
Financial risk management For personal use only Interest rate + Interest rates are hedged to 78% over next 12 months + Weighted average hedge rate of 4.88%1 vs spot2 3.92% - NZD – (hedge 7.48%, spot 5.37%) - JPY – (hedge 1.55%, spot 0.84%) - HKD – (hedge 4.27%, spot 2.66%) - GBP – (hedge 6.97%, spot
Slide 40: Interest rate hedging profile
Financial risk management For personal use only Interest rate hedging profile Euro payable GBP payable HKD payable NZD payable JPY payable Fixed Fixed1 Fixed Fixed rate Fixed rate rate rate % rate As at June €M % £M % HK$M % NZ$M ¥M % 2010 (660.0) 3.82% (785.0) 5.54% (1,530.4) 4.28% (173.0) 7.70% (1
Slide 41: Currency hedging profile
Financial risk management For personal use only Currency hedging profile Amount Amount Amount Maturing in Hedge rate payable Hedge rate payable Hedge rate payable year ending June €M HK$M NZ$M 2010 0.5667 (24.0) 5.3333 (68.5) 1.1491 (5.6) 2011 0.5273 (17.0) 5.0701 (62.6) 1.1630 (5.3) 2012 0.5229 (14
Slide 42: Exchange rates
Exchange rates For personal use only + Statement of Financial Position – exchange rates as at 30 June 2009 – AUDGBP – 0.4872 (30 June 2008 – 0.4860) – AUDEUR – 0.5751 (30 June 2008 – 0.6117) – AUDHKD – 6.2586 (30 June 2008 – 7.4812) – AUDSGD – 1.1699 (30 June 2008 – 1.3093) – AUDNZD – 1.2428 (30 Jun
Slide 43: Thank you
For personal use only thank+you