GARDA Property Group · ASX:GDF
GARDA Property — HY25 Earnings Presentation
33 slides from GARDA Property's earnings presentation, Feb 6, 2025
Slide 1: Interim Results Presentation
For personal use only Interim Results Presentation | 6 February 2025 GARDA PROPERTY GROUP (ASX: GDF)
Slide 2: Disclaimer
DISCLAIMER This presentation (Presentation) has been prepared on behalf of Garda Property Group (GDF or Group or Garda), comprising Garda Holdings Limited (GHL) and its controlled entities and Garda Capital Limited (ACN 095 039 366) (AFSL 246714) (GCL) as responsible entity of the Garda Diversified
Slide 3: Overview
For personal use only OVERVIEW Pinnacle West, Wacol
Slide 4: Group Strategy: How Garda Invests in Real Estate
GROUP STRATEGY HOW GARDA INVESTS IN REAL ESTATE For personal use only Garda allocates capital to develop, own or lend within its preferred real estate sectors. “Develop to own” Provide debt capital to external developers Acquire established real estate if more compelling than “develop to own” Indust
Slide 5: Group Overview
GROUP OVERVIEW WHO IS GARDA AND WHAT IS ITS STRATEGY For personal use only REAL ESTATE PLATFORM Internally managed REIT with predominantly south-east Queensland exposure. $513 million 85% Industrial PORTFOLIO VALUE AS PERCENT OF PROPERTY VALUE A proven active approach, including a successful “develo
Slide 6: HY25 Financial Overview
HY25 FINANCIAL OVERVIEW For personal use only 7.2 CPS1 ~ 95%2 85% FY25 INCOME RETURN FORECAST FY25 FFO TAX ADVANTAGED REAFFIRMED PAYOUT RATIO DISTRIBUTIONS 40% $1.62 64% GEARING NTA PER SECURITY DEBT HEDGED FY25 income return of 7.2 cents per security includes a 6.3 cents per security fund distribut
Slide 7: HY25 Operational Outcomes
HY25 OPERATIONAL OUTCOMES ASSET SALES WILL RESET THE BALANCE SHEET AND REDUCE FUNDING REQUIREMENTS For personal use only North Lakes Industrial Cairns office Redeployment industrial land sale pipeline marketed for of capital into delivery sale new lending 14,777m² Acacia Ridge industrial In January
Slide 8: Garda Historical Performance
GARDA HISTORICAL PERFORMANCE NTA, GEARING AND PAYOUT RATIO ARE STABLE 1 Gearing 2 NTA per security For personal use only $2.05 $1.96 38% 40% 36% 37% $1.71 36% $1.62 34% $1.45 $1.18 FY20 FY21 FY22 FY23 FY24 HY25 FY20 FY21 FY22 FY23 FY24 HY25 3 Payout Ratio1 4 WALE 105% 5.6 5.5 5.7 101% 98% 93% 95% 4.
Slide 9: Garda Performance: Disconnect Between NTA and Security Price
GARDA PERFORMANCE A DISCONNECT BETWEEN NTA AND SECURITY PRICE The 31% discount to NTA represents $82.4 million and implies a 7.8% capitalisation rate on established properties. For personal use only 1 ASX Performance Since May 2022 (rebased)1,2 2 ASX discount to NTA (%)1,2 GDF.ASX Peer1 (Ind.) Peer2
Slide 10: Finance
For personal use only FINANCE 41 Bivouac Pl, Wacol
Slide 11: Net Tangible Assets Reconciliation
NET TANGIBLE ASSETS RECONCILIATION REMAINING FAIR VALUE MOVEMENTS HAVE NOW RESET NTA Increase Decrease Total For personal use only $1.80 $1.71 $1.70 -$0.03 -$0.02 $1.62 -$0.02 -$0.01 $1.60 -$0.01 $1.50 $1.40 $0.50 (31%) Discount to NTA $1.30 $1.20 $1.12 $1.10 $1.00 Bldg B, Pinnacle West, Wacol 11
Slide 12: Funds From Operations (FFO)
FUNDS FROM OPERATIONS (FFO) HY25 HY24 For personal use only $000 $000 Net loss after tax (10,193) (34,612) Adjustments for non-cash items and one-off items: Valuations – (deduct increases) / add back decreases: Investment properties 13,928 32,997 Derivatives 2,900 3,587 Asset disposals – (deduct gai
Slide 13: Capital Management
CAPITAL MANAGEMENT 2 Hedge Profile – 31 December 2024 Key Debt Metrics – 31 December 2024 For personal use only Fixed Variable ▪ The syndicated debt facility was drawn to $235.6 Total debt facilities $270.0 million million at 31 December 2024, providing $34.4 million Drawn debt $235.6 million of und
Slide 14: Income Statement
INCOME STATEMENT HY25 HY24 $000 $000 For personal use only Revenue Rental and recovery revenue ❶ 12,074 15,055 Interest and lending revenue ❷ 3,083 1,653 Other income 392 286 Total revenue and other income 15,549 16,994 Expenses Property expenses (2,906) (3,631) Bldg A, Pinnacle West, Wacol Corporat
Slide 15: Balance Sheet
BALANCE SHEET 31 Dec 2024 30 Jun 2024 $000 $000 For personal use only Current assets Cash and cash equivalents 14,477 17,002 Trade and other receivables 189 150 Financial assets ❶ 23,712 26,177 Investment properties held for sale ❷ 104,678 13,298 Other assets 2,622 741 Derivative financial instrumen
Slide 16: Property Portfolio
For personal use only PROPERTY PORTFOLIO 56-72 Bandara St, Richlands
Slide 17: Property Portfolio: Integrated South-East Queensland Industrial Platform
PROPERTY PORTFOLIO INTEGRATED SOUTH-EAST QUEENSLAND INDUSTRIAL PLATFORM Geography and Sector (by Value) For personal use only Cairns / Office Brisbane / Industrial 15% 109-135 Boundary Road, North Lakes 70-82 Main Beach Road, Pinkenba 85% 326 & 340 Thynne Road, Morningside Gross 38, 56, 69 Peterkin
Slide 18: Valuation Overview
VALUATION OVERVIEW 5.69% 8.37% 6.21% INDUSTRIAL CAP RATE CAIRNS CAP RATE PORTFOLIO CAP RATE For personal use only ▪ Three of 11 properties were independently valued in December 2024 for the purposes of Valuation Property Sector Valuation Cap Rate the interim reporting, resulting in a $10.7 million d
Slide 19: Lease Expiry Profile
LEASE EXPIRY PROFILE MINIMAL EXPIRY IN FY25/26 WITH ~$4 MILLION UPSIDE FROM ACACIA RIDGE ▪ GHD exercised its five-year option for 869m² of office accommodation in Cairns, commencing in May 2025 at a rate of $592/m². For personal use only ▪ FY25 and FY26 expiry is largely isolated to the strongly per
Slide 20: Capital Transactions: North Lakes
CAPITAL TRANSACTIONS NORTH LAKES Garda has contracted to sell North Lakes project to an ESR managed fund for $114.0 million, less than a 2.5% discount to the For personal use only independent on completion valuation of $116.8 million. Total cost of the project, including holding cost, until settleme
Slide 21: Key Metrics Post North Lakes Transaction
KEY METRICS POST NORTH LAKES TRANSACTION SIMPLIFIED BALANCE SHEET PROVIDES OBSERVABLE ADVANTAGE OVER PEERS A Gearing (%) 43% 38% 34% For personal use only Portfolio value $408 million 27% 26% Gearing 26.0% PRO FORMA Peer 1 (Ind.) Peer 2 (Ind.) Garda Peer (Ind./Off.) Peer 4 (Off.) B FY25 DPS Guidance
Slide 22: Capital Transactions: Cairns Corporate Tower
CAPITAL TRANSACTIONS CAIRNS CORPORATE TOWER ▪ For personal use only Cairns Corporate Tower is the last remaining asset that Garda Diversified Property Fund owned at IPO in 2015, and its only office exposure. ▪ At the 2015 Garda IPO, Cairns was valued at $38.5 million, with an average passing rent of
Slide 23: Industrial Development
For personal use only INDUSTRIAL DEVELOPMENT Acacia Ridge – Stage 2
Slide 24: Development Track Record
DEVELOPMENT TRACK RECORD STRONG HISTORY OF ACQUIRING LAND AND DEVELOPING PRIME INDUSTRIAL ASSETS 1 1-9 Kellar Street, Berrinba 2 69 Peterkin Street, Acacia Ridge For personal use only ▪ Speculatively developed ▪ 6,262m² facility completed in 5,683m² multi tenant facility January 2022 as a pre-commit
Slide 25: 38-56 Peterkin Street, Acacia Ridge
38-56 PETERKIN STREET ACACIA RIDGE, QUEENSLAND For personal use only Construction reached practical completion in December 2024. Fully leased annualised net property income is forecast at $3.0 million. ▪ Stage 2 of the Acacia Ridge development reached practical + $3.0 million p.a. $200/m² completion
Slide 26: Peterkin Street, Acacia Ridge
69 PETERKIN STREET ACACIA RIDGE, QUEENSLAND A tenant vacating the property allowed Garda to activate the balance of land at the rear of the existing 6,262m² warehouse. A For personal use only 3,000m² expansion is possible at a cost of ~$7.0 million. A substantial market rent reversion for the entire
Slide 27: 109-135 Boundary Rd, North Lakes: Valuation Journey
109-135 BOUNDARY RD, NORTH LAKES VALUATION JOURNEY – PERMITTING, OPERATIONAL WORKS TO SETTLEMENT After acquiring the site for $16 million, Garda will have invested approximately $41 million creating 25ha of estate quality land. Upon For personal use only settlement, a $57 million gain will be crysta
Slide 28: Lending
For personal use only LENDING
Slide 29: Real Estate Lending
REAL ESTATE LENDING ENHANCED RETURNS FROM LENDING Garda continued to increase its revenue from its lending activities and has matched loan run FY25 FCST off to new deployment. 21% For personal use only FY24 12% FY23 9% $27.5 million Attractive double-digit returns have been achieved. Deployed capita
Slide 30: Guidance
For personal use only GUIDANCE 38-56 Peterkin Street, Acacia Ridge
Slide 31: FY25 Guidance Upgraded
FY25 GUIDANCE UPGRADED ADDITIONAL NET INCOME AND REDUCED INTEREST EXPENSE INTO FY26 FY25 FFO guidance has been upgraded. The distribution payout ratio is now 95%, in from 100%. For personal use only 6.3 cps 0.9 cps 7.2 cps FY25 DISTRIBUTION GUIDANCE FY24 FULLY-FRANKED DIVIDEND FY25 INCOME RETURN GUI
Slide 32: Glossary
GLOSSARY DEFINITIONS AND EXPLANATIONS Item / Term Definition / Explanation For personal use only Funds from Operations is the Group’s underlying and recurring earnings from its operations. It is determined by adjusting statutory net profit FFO (under AIFRS) for certain non-cash and other one-off ite
Slide 33: For personal use only
For personal use only w: gardaproperty.com.au e: info@gardaproperty.com.au Level 21, 12 Creek Street, Brisbane QLD 4000 p: +61 7 3002 5300 GPO Box 5270, Brisbane QLD 4001