Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — Investor Presentation (June 2019)
30 slides from Growthpoint Properties Australia's investor presentation, Jun 27, 2019
Slide 1: Space to thrive: Portfolio Update and Equity Raising
STRICTLY PRIVATE AND CONFIDENTIAL Space to thrive Portfolio Update and Equity Raising 27 June 2019 Growthpoint Properties Australia Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409 www.growthpoint.com.au NOT FOR DISTRIBUT
Slide 2: Important information
Important information. DISCLAIMER This presentation and its appendices (Presentation) is dated 27 June 2019 and has been prepared by Growthpoint Properties Australia Limited ACN 124 093 901 (both in its capacity as responsible entity of Growthpoint Properties Australia Trust ARSN 120 121 002 and in
Slide 3: Agenda
572-576 Swan Street, Richmond, VIC Agenda. 1. Equity raising overview 4 2. Growthpoint update 6 3. Equity raising and financial impact 10 Appendix Presenting today: A. Pro forma balance sheet 16 B. Growthpoint overview 19 C. Key investment risks 22 D. International offer restrictions 26 Timothy Coll
Slide 4: Equity raising overview
100 Skyring Terrace, Newstead, QLD Equity raising overview NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 5: Equity Raising overview
Equity Raising overview. Growthpoint is undertaking an equity raising comprising (together, the Equity Raising): A fully-underwritten institutional placement to raise approximately $150 million (Placement) A non-underwritten security purchase plan to raise up to $15 million (SPP)1 The procee
Slide 6: Growthpoint update
Growthpoint update 75 Dorcas Street, South Melbourne, VIC NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 7: Business update
Business update. June valuations Capital management Lease expiry profile2 27 of Growthpoint’s 57 properties, initiatives 40% representing 46% of total portfolio value, Reset the interest rate swap book by 2% are currently being independently valued cancelling existing swaps with a total as at 30
Slide 8: Growthpoint development projects update
Growthpoint development projects update. Current development projects Future pipeline Construction of a Expansion of Internal new 19,300 sqm Woolworths development office building in Distribution Centre opportunity under Richmond, VIC in Gepps Cross, SA consideration Construction currently trackin
Slide 9: Growthpoint's $3.8 billion portfolio is well-diversified across mainland Australian states
Growthpoint’s $3.8 billion portfolio is well-diversified across mainland Australian states with 87% weighting to eastern seaboard cities1. Sector diversity (%) Geographic diversity (%) Occupancy (%) by property value by property value by income NSW 25% Office 69% WA 8% SA 5% ACT 5% Occupied 99% Vaca
Slide 10: Equity raising and financial impact
15 Green Square Close, Fortitude Valley, QLD Equity raising and financial impact NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 11: Equity Raising details
Equity Raising details. Structure Placement to raise approximately $150 million, fully-underwritten by J.P. Morgan Securities Australia Limited Non-underwritten SPP to provide eligible Securityholders1 with the opportunity to acquire up to $15,000 of new Securities Issue price of $3.97 per Sec
Slide 12: Financial impact and guidance
Financial impact and guidance. Reaffirmation of FY19 FFO per Security guidance of at least 25.0 cents, including the impact of the Equity Raising1 FY20 guidance1 including the impact of the Equity Raising of: FFO per Security of at least 25.4 cps DPS of 23.8 cps Balance sheet impact: Pro
Slide 13: Equity Raising timetable
Equity Raising timetable. Event Date1 Record date for SPP (the date that eligibility to participate in the SPP was determined) 7.00pm on Wednesday, 26 June 2019 Trading halt and announcement of the Equity Raising Thursday, 27 June 2019 Placement bookbuild Thursday, 27 June 2019 Announcement of the o
Slide 14: Conclusion
Conclusion. P Growthpoint continues to deliver on its successful business model with strategic acquisitions located in favoured office and logistics markets that are anticipated to grow Balance sheet primed to deliver Growthpoint’s strategy with a low cost of capital: pro forma gearing of 31.6%, P w
Slide 15: Appendices
Appendices 836 Wellington Street, West Perth, WA NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 16: Appendix A: Pro forma balance sheet
255 London Circuit, Canberra, ACT Appendix A: Pro forma balance sheet NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 17: Pro forma balance sheet
Pro forma balance sheet. as at 31 December capital management Equity Raising3 2018 initiatives1 adjustments pro forma $’000 $’000 $’000 $’000 Assets Cash and cash equivalents 40,955 40,955 Investment properties 3,815,575 3,815,575 Other assets 136,008 136,008 Total assets 3,992,538 3,992,538 Liabili
Slide 18: Balance sheet primed to deliver Growthpoint's strategy
Balance sheet primed to deliver Growthpoint’s strategy. Secured bank loans Limit Drawn Maturity Change in gearing and cost of debt (%) $m $m 55% 7.0% 4.7 yrs Weighted Syndicated Facility 6.7% average debt - Facility B 100 7 Mar-23 Gearing maturity 50% target range 6.5% - Facility C 245 245 Dec-21 35
Slide 19: Appendix B: Growthpoint overview
3 Murray Rose Avenue, Sydney Olympic Park, NSW Appendix B: Growthpoint overview NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 20: Simple business model – strong track record of returns
Simple business model – strong track record of returns. Property Capital management Returns Future debt capital markets issuance to further Total Securityholder return (%)1 diversify and extend funding profile 23.5% 23.0% Maintain prudent gearing settings 17.4% Continue to seek well-leased, we
Slide 21: Growthpoint's investment principles
Growthpoint’s investment principles. An investment in Growthpoint is a 100% real property 75 Dorcas Street, South Melbourne investment underpinned by four core principles: 100% of income from 100% investment in Australia property All of Growthpoint’s properties are located Growthpoint does not have
Slide 22: Appendix C: Key investment risks
Appendix C: Key investment risks 27-49 Lenore Drive, Erskine Park, NSW NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 23: Key investment risks
Key investment risks. PROPERTY ACQUISITIONS BUILDINGS CONDITION AND DEFECTS FUNDING AND REFINANCING RISK A key element of the Group’s future strategy will involve the The Group’s properties are professionally managed by Market volatility has had a significant impact on the real estate acquisition of
Slide 24: Key investment risks continued
Key investment risks continued. Changes to the unitholder composition could impact MARKET PERCEPTION RISK FIXED NATURE OF COSTS Growthpoint Properties Australia Trust and its controlled The extent to which the Equity Raising enhances value for Many costs associated with the ownership and management
Slide 25: Key investment risks continued
Key investment risks continued. LITIGATION AND DISPUTES Legal and other disputes (including industrial disputes) may arise from time to time in the ordinary course of operations. Any such dispute may impact on earnings or affect the value of the Group’s assets. FOREIGN EXCHANGE/CURRENCY RISK All inf
Slide 26: Appendix D: International offer restrictions
1 Charles St, Parramatta, NSW Appendix D: International offer restrictions NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 27: International offer restrictions
International offer restrictions. This document does not constitute an offer of Securities in any NEW ZEALAND Any offer is not made to you with a view to the Securities being jurisdiction in which it would be unlawful. In particular, this This document has not been registered, filed with or approved
Slide 28: International offer restrictions continued
International offer restrictions continued. UNITED KINGDOM The Securities are being marketed in the United Kingdom in No prospectus has been, or will be, filed in the Provinces with Neither this document nor any other document relating to the compliance with the National Private Placement Regime (wi
Slide 29: International offer restrictions continued
International offer restrictions continued. STATUTORY RIGHTS OF ACTION FOR DAMAGES OR a) the Group will not be liable if it proves that the purchaser RESCISSION purchased the Securities with knowledge of the Securities legislation in certain of the Provinces may provide misrepresentation; purchasers
Slide 30: Glossary
Glossary. A-REIT Australian Real Estate Investment Trust Growthpoint or the Group Growthpoint Properties ASX Australian Securities Exchange Australia comprising the Company, the Trust and their Board the board of directors of the Company and the respective controlled entities Responsible Entity Plac
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