Gdi Property Group · ASX:GDI
Gdi Property — H1 FY2016 Earnings Presentation
44 slides from Gdi Property's earnings presentation, Feb 22, 2016
Slide 1: GDI Property Group Half year results presentation
GDI PROPERTY GROUP Half year results presentation 22 February 2016
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
INTRODUCTION LINKING EQUITY MILL GREEN, TO PERFORMANCE PERTH 2
Slide 4: Overview
Overview NTA – $0.99 per FFO for the period ended 31 FFO guidance for FY16 – 8.80 security December 15 – 4.82 cents per cents per security security Portfolio occupancy Absolute Total Return WALE – 3.4 years Gearing – 31% – 88% since IPO – 12.43% LINKING EQUITY TO PERFORMANCE 3
Slide 5: Strong first half
Strong first half FFO1 of $26.0 million, 59% of the ‘as is’ FFO guidance provided Absolute total return4 of 3.9% for the period in August 2015 Absolute total return since listing of 12.43% p.a. ‘As is’ FFO skewed to the first half as a result of expiry of Total securityholder return5 of 2.
Slide 6: We continue to deliver on strategy
We continue to deliver on strategy Completed the sale of 233 Castlereagh Street, Sydney, for Cash profit from sale of 233 Castlereagh Street, Sydney $156.0 million $’000 Cash profit of $32.3 million not included in either FFO or AFFO Acquisition price 121,000 Exchanged contracts to acquire 50
Slide 7: Well positioned for balance of FY16 and beyond
Well positioned for balance of FY16 and beyond Property portfolio well positioned with limited downside risk but with upside potential through leasing and other asset management initiatives Only 5% of the portfolio’s NLA is subject to expiries in remainder of FY16, largest exposure in FY17 is at
Slide 8: Extracting value
Extracting value GDI Property Group’s strategy remains unchanged: Maximising the income and capital potential in the existing property portfolio Acquiring well located properties at below replacement cost that offer an opportunity to create value through active asset management Optimising th
Slide 9: Extracting value
Extracting value On completion of its asset management strategies, GDI Property Group will look to divest individual properties Converting real estate to cash should bridge the security price gap to NTA All capital management initiatives will be reviewed on any sale Targeting one / two sales
Slide 10: Financial Results
FINANCIAL RESULTS LINKING EQUITY 66 GOULBURN TO ST, PERFORMANCE SYDNEY 9
Slide 11: Profit and Loss
Profit and Loss Group Net property income for the period totalled $28.8 million Year ended − Included in net property income was $3.3 million from 233 31 December 2015 Castlereagh Street, Sydney $'000 Revenue from ordinary activities − The passing yield on the balance of the portfolio was 6.9% of
Slide 12: NPAT to AFFO
NPAT to AFFO Period ended GDI Property Group does not include any transactional profits in 31 December its FFO or FFO guidance 2015 − 233 Castlereagh Street, Sydney, was revalued to its sale price $'000 at the time the Put and Call Options were entered in to Total comprehensive income for the peri
Slide 13: Balance sheet in a strong position
Balance sheet in a strong position As at GDI Property Group’s balance sheet is in a sound position, with 31 December 2015 an LVR of 31%1 as at 31 December 2015 (bank Covenant Gearing $'000 31% vs Covenant of 50%) Total current assets 52,039 − LVR forecast to increase to 33% following the acquisiti
Slide 14: Debt profile
Debt profile Drawn debt of $225.1 million as at 31 December 2015 Pro forma debt of $260.0 million following settlement of 50 Cavill Avenue, Surfers Paradise, ongoing working capital requirements and successful completion of capital raising for GDI No. 42 Office Trust Requirement by 30 June 201
Slide 15: Interest rate hedging
Interest rate hedging Board hedging policy of at least 50% of drawn debt hedged Have not terminated or restructured any hedges Currently 67% hedged, reducing to 58% on a pro forma1 basis All in cost of drawn debt for the period of 4.38% (inclusive of line fees on undrawn facilities, but excl
Slide 16: The Property Portfolio
THE PROPERTY PORTFOLIO LINKING 307 EQUITY QUEEN TO PERFORMANCE ST, BRISBANE 15
Slide 17: Portfolio overview
Portfolio overview LINKING EQUITY TO PERFORMANCE 16
Slide 18: Portfolio overview
Portfolio overview Including 50 Cavill Avenue, Surfers Paradise 31 December 2015 1 February 2016 Total NLA 108,264 124,830 Portfolio occupancy1 88% 84% WALE (by NLA) 3.4 years 3.3 years FY16 expiries (%) 5% 4% FY17 expiries (%) 22% 20% Weighted average cap rate 7.4% 7.5% 35% 30% 1 Mill St 25% 50 Cav
Slide 19: Mill Green Complex
Mill Green Complex LINKING EQUITY TO PERFORMANCE 18
Slide 20: Mill Green Complex
Mill Green Complex 197 St Georges Terrace recently received at 5.5 Stars NABERS Key metrics as at: Dec-15 Jun-15 Energy rating, which together with the 4.5 Stars NABERS Water rating and 5 Stars NABERS Indoor Environment rating makes it one of Independent valuation date 31 December 15 31 December 1
Slide 21: 197 St Georges Terrace, Perth
197 St Georges Terrace, Perth Actual view from Level 10 Refurbished foyer LINKING EQUITY TO PERFORMANCE 20
Slide 22: 197 St Georges Terrace, Perth
197 St Georges Terrace, Perth 60% Key metrics as at: Dec-15 Jun-15 Independent valuation date 31 December 15 31 December 14 50% Independent valuation ($M) 241.00 239.00 Independent valuation /NLA ($) 9,076 9,001 40% Carrying value ($M) 241.00 243.57 Capitalisation rate 7.50% 8.00% 30% Discount rate
Slide 23: 5 Mill Street, Perth
5 Mill Street, Perth Mill Green LINKING EQUITY TO PERFORMANCE 22
Slide 24: 5 Mill Street, Perth
5 Mill Street, Perth 25% Key metrics as at: Dec-15 Jun-15 Independent valuation date 31 December 15 31 December 14 20% Independent valuation ($M) 53.00 54.00 Independent valuation /NLA ($) 7,376 7,515 Carrying value ($M) 53.00 54.65 15% Capitalisation rate 8.00% 8.25% Discount rate 8.50% 8.75% 10% N
Slide 25: 1 Mill Street, Perth
1 Mill Street, Perth Key metrics as at: Dec-15 Jun-15 Independent valuation date 31 December 15 31 December 14 Independent valuation ($M) 32.00 41.00 Independent valuation /NLA ($) 4,813 6,167 Carrying value ($M) 32.00 41.51 Capitalisation rate 8.25% 8.25% Discount rate 9.50% 8.75% NLA (sqm) 6,648 6
Slide 26: 66 Goulburn Street, Sydney
66 Goulburn Street, Sydney Refurbished floor LINKING EQUITY TO PERFORMANCE 25
Slide 27: 66 Goulburn Street, Sydney
66 Goulburn Street, Sydney All leases previously subject to Heads of Agreement now executed Heads of Agreement for lease renewal with Dealsong Pty Limited (Samuel Griffith Chambers) 10 year lease commencing 1 October 2016 Expect Consolidated Media Holdings Limited (CMH) (expiry August 2016;
Slide 28: 66 Goulburn Street, Sydney
66 Goulburn Street, Sydney 70% Key metrics as at : Dec-15 Jun-15 Independent valuation date 31 December 15 30 June 15 60% Independent valuation ($M) 169.00 157.00 Independent valuation /NLA ($) 7,339 6,817 50% Carrying value ($M) 169.00 157.00 Capitalisation rate 6.75% 7.00% 40% Discount rate 8.00%
Slide 29: 307 Queen Street, Brisbane
307 Queen Street, Brisbane Refurbished foyer Refurbished tenant lobby LINKING EQUITY TO PERFORMANCE 28
Slide 30: 307 Queen Street, Brisbane
307 Queen Street, Brisbane Occupancy at 307 Queen Street has decreased to 79%1 from 89%1 as at 30 June 2015, due to the expiry of the vacancy guarantee in December 2015 Strong momentum to begin 2016 Signed Heads of Agreement with three new tenants for over 750sqm Agreed terms to renew over 2
Slide 31: 307 Queen Street, Brisbane
307 Queen Street, Brisbane 25% Key metrics as at: Dec-15 Jun-15 Independent valuation date 31 December 15 30 June 15 Independent valuation ($M) 126.50 122.50 20% Independent valuation /NLA ($) 6,499 6,260 Carrying value ($M) 126.50 122.50 15% Capitalisation rate 7.50% 7.50% Discount rate 8.25% 8.25%
Slide 32: 25 Grenfell Street, Adelaide
25 Grenfell Street, Adelaide LINKING EQUITY TO PERFORMANCE 31
Slide 33: 25 Grenfell Street, Adelaide
25 Grenfell Street, Adelaide Occupancy [steady] at 95% (June 2015: 95%) Minister for Administrative Services (PIRSA) lease executed 8 year term commencing February 2016 for 5,885sqm Over 53% of NLA now subject to leases with expiries beyond 2020 Minister for Administrative Services (Dept.
Slide 34: 25 Grenfell Street, Adelaide
25 Grenfell Street, Adelaide 60% Key metrics as at : Dec-15 Jun-15 Independent valuation date 31 December 15 31 December 14 Independent valuation ($M) 114.00 109.00 50% Independent valuation /NLA ($) 4,491 4,294 Carrying value ($M) 114.00 111.14 40% Capitalisation rate 7.50% 8.25% Discount rate 8.50
Slide 35: 50 Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise Views from Level 20 LINKING EQUITY TO PERFORMANCE 34
Slide 36: 50 Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise LINKING EQUITY TO PERFORMANCE 35
Slide 37: 50 Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise Settled the acquisition of 50 Cavill Avenue, Surfers Paradise on 1 February 2016 Immediately commenced a refurbishment program Ground floor foyer upgrade completed Upgrade of the lifts and replacement of the chillers Full refurbishment of vacant floors
Slide 38: 50 Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise 45% Key metrics as at: Feb-16 40% Independent valuation date 8 December 15 Independent valuation ($M) 48.75 35% Independent valuation /NLA ($) 2,943 30% Carrying value ($M) 48.75 25% Capitalisation rate 9.25% 20% Discount rate 8.75% NLA (sqm) 16,566 15% Typical flo
Slide 39: Funds Business
FUNDS BUSINESS LINKING 25 EQUITY GRENFELL ST,TO PERFORMANCE ADELAIDE 38
Slide 40: Funds Business summary
Funds Business summary Continue to steadily grow FUM back to pre IPO levels Launch of GDI No. 42 Office Trust announced 19 February 2016, taking FUM to approximately $380.0 million We continue to monitor all investment markets, but maintain a disciplined approach to acquisitions and will not c
Slide 41: GDI No. 42 Office Trust
GDI No. 42 Office Trust Announced launch of GDI No. 42 Office Trust on 19 February 2016 Significant early interest from investors Investment highlights include Well located, institutional grade office buildings Exposure to two diversified markets with over 86% of the income provided by Gov
Slide 42: Guidance
GUIDANCE LINKING 66 EQUITY GOULBURN TO ST, PERFORMANCE SYDNEY 41
Slide 43: FY16 guidance
FY16 guidance GDI Property Group upgrades its FFO guidance to at least 8.80 cents per security for FY161 Upgraded from previous ‘as is’2 guidance of 8.20 cents per security Major reasons for upgrade: Net transactional fees from the Funds Business (+0.20 cents) Interest income from delayed
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Unsaved Document / 29/07/2013 / 16:23 LINKING EQUITY TO PERFORMANCE 44