Gpt Group · ASX:GPT
Gpt — The GPT Group — Investor Presentation (May 2009)
40 slides from Gpt's investor presentation, May 7, 2009
Slide 1: Equity Raising and Strategic Initiatives Presentation
For personal use only Equity Raising and Strategic Initiatives Presentation 7 May 2009 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 2: Important Notice
IMPORTANT NOTICE For personal use only This Presentation is issued by GPT RE Limited as responsible entity for General Property Trust and GPT Management Holdings Limited (together, The GPT Group). This Presentation is in relation to an Entitlement Offer of New Stapled Securities of The GPT Group to
Slide 3: Agenda
GPT - Equity Raising and Strategic Initiatives Presentation For personal use only Executive Summary Financial Analysis Appendices A. Key Risks and Other Information B. International Selling Restrictions 3 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 4: Executive Summary
For personal use only Executive Summary NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 5: Executive Summary
Executive Summary For personal use only GPT Entitlement Offer and Institutional Placement to raise a minimum of $1.2 billion of equity to strengthen its balance sheet – Approximately $1.1 billion fully underwritten Institutional Entitlement Offer – $120 million fully underwritten Institutional Pla
Slide 6: Rationale for the Raising
Rationale for the Raising For personal use only Gearing covenant headroom and liquidity issues have been the overriding concern for investors An equity raising provides the most holistic solution to the issues facing GPT and allows GPT to engage banks on refinancing. The equity raising: – Materi
Slide 7: Rationale for the Raising
Rationale for the Raising (Continued) For personal use only Gearing below does not reflect positive impacts from - Any take-up of the Retail Entitlement Offer - Positive impact of exchange rate movements since 31 December 2008 Pro forma balance sheet gearing1 Pro forma look through gearing1 60% 60
Slide 8: Liquidity
Liquidity For personal use only Net funding requirement to 31 December 2010 to reduce from $1.5 billion to $0.3 billion. Refinancing requirement can be funded by a combination of – Retail take-up of Entitlement Offer (up to $470 million) – Extension of $0.4 billion secured bilateral facilities (cu
Slide 9: Offer Overview
Offer Overview For personal use only 1 for 1 non-renounceable Entitlement Offer and institutional Placement at $0.35 per stapled security to raise up to $1.7 billion – Institutional Entitlement Offer (approximately $1.1 billion) and Placement ($120 million) fully underwritten – $470 million retail
Slide 10: Offer Overview
Offer Overview (Continued) For personal use only Relative value 63% discount to pro forma 14% 2009 DPS yield on issue price2 NTA per security $1.00 $0.95 16% 13.7% 14% 12.6% $0.80 (63% ) 12% 10.5% 9.7% 9.9% 10% 8.7% $0.60 8.1% 8.0% 8% $0.40 $0.35 6% 4% $0.20 2% 0% $0.00 GPT offer GPT offer Mirvac CF
Slide 11: Babcock & Brown Joint Venture
Babcock & Brown Joint Venture For personal use only GPT can now seek an accelerated exit from the Babcock & Brown Joint Venture – GPT acknowledges the Joint Venture is unlikely to have any material value in the future – GPT no longer constrained by debt covenants All exit options will be conside
Slide 12: Distributions
Distributions For personal use only Guidance for full year 2009 DPS of 4.8 cents1 DPS of 4.4 cents annualising 2H09 forecast DPS of 2.2 cents 2009 base case guidance consistent with market guidance provided in ASX Announcement of 30 April 2009 Participation in DRP suspended for the March qua
Slide 13: Indicative Timetable
Indicative Timetable For personal use only Placement and Institutional Entitlement Offer opens 10.00am (Sydney time) Thursday 7 May 2009 Securityholder declaration forms due to Orient Capital 4.00pm (Sydney time) Thursday 7 May 2009 Placement and Institutional Entitlement Offer closes 9.30am (Sydney
Slide 14: Financial Analysis
For personal use only Financial Analysis NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 15: Balance Sheet Impact of Strategic Initiatives
Balance Sheet Impact of Strategic Initiatives For personal use only Pro forma balance sheet gearing1 — sensitivity analysis Based on $1.2 billion minimum raising Assumes zero retail take-up — 100% retail take-up reduces balance sheet gearing post raising by c.4% 45% Balance sheet gearing covenan
Slide 16: Balance Sheet Impact of Strategic Initiatives
Balance Sheet Impact of Strategic Initiatives For personal use only Pro forma look through gearing1 — sensitivity analysis Based on $1.2 billion minimum raising Assumes zero retail take-up — 100% retail take-up reduces look through gearing post raising by c.3% 60% Look through gearing covenant =
Slide 17: Balance Sheet Impact of Strategic Initiatives
Balance Sheet Impact of Strategic Initiatives For personal use only Pro forma NTA per security1 — sensitivity analysis Based on $1.2 billion minimum raising Assumes zero retail take-up — 100% retail take-up reduces NTA per security post raising by c.$0.09 $1.50 $1.25 $1.00 $0.75 1.43 $0.50 0.95
Slide 18: Distribution Impact of Strategic Initiatives
Distribution Impact of Strategic Initiatives For personal use only Pro forma 2009 DPS (cents) Based on $1.2 billion minimum raising Assumes zero retail take-up — pro forma 2009 DPS with 100% retail take-up is forecast at 4.5 cents 8.0 7.0 6.0 5.0 4.0 6.6 3.0 4.8 4.4 2.0 1.0 0.0 Base case forecas
Slide 19: Distribution Guidance
Financial Analysis Distribution Guidance For personal use only Year ending 31 Dec 09 Forecast $m1 Retail, Office, Industrial and Funds Management Australia2 529 Hotel / Tourism 50 US Seniors Housing and Funds Management Europe (13) Development 2 Financing costs (191) Other corporate costs (22) Total
Slide 20: Balance Sheet
Financial Analysis Balance Sheet For personal use only 31 December 2008 31 December 2008 $ million Actual Adjustments5 Pro forma post offer ASSETS Cash 962 (748) 214 Real estate related assets1 11,714 (205) 11,509 Other assets 305 305 Intangible assets 49 49 Total assets 13,030 (953) 12,077 LIABILIT
Slide 21: Appendix A: Key Risks and Other Information
For personal use only Appendix A Key Risks and Other Information NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 22: Key Primary Business Risks
Key Primary Business Risks For personal use only Debt covenants GPT has various covenants in relation to its banking facilities, including: – A balance sheet gearing limit of 40%; – A look through gearing limit of 55%; and – A minimum interest cover ratio of 2.0 times Under the trust constitutio
Slide 23: Key Primary Business Risks
Key Primary Business Risks (Continued) For personal use only Availability of funding Real estate investment and development is highly capital intensive. GPT’s ability to raise funds on favourable terms for future refinancing, development and acquisitions depends on a number of factors including ge
Slide 24: Key Primary Business Risks
Key Primary Business Risks (Continued) For personal use only Babcock & Brown Joint Venture GPT had an investment of $1.2 billion in preferred capital in the Babcock & Brown Joint Venture as at 31 December 2008. Deterioration in economic conditions and property markets in the regions in which the B
Slide 25: Key Primary Business Risks
Key Primary Business Risks (Continued) For personal use only Accelerated exit from Babcock & Brown Joint Venture GPT has announced its intention to seek to accelerate the exit from the Babcock & Brown Joint Venture Exiting the Babcock & Brown Joint Venture is complicated and GPT is currently rev
Slide 26: Key Primary Business Risks
Key Primary Business Risks (Continued) For personal use only Interest rates and foreign exchange rates GPT is subject to the risk of: - Rising interest rates associated with borrowing on a floating interest rate basis. GPT manages its exposure to adverse fluctuations in floating interest rates by
Slide 27: Key Primary Business Risks
Key Primary Business Risks (Continued) For personal use only Highpoint put option The owners of the Highpoint Shopping Centre have the right to put the balance of their 50% interest, or a part thereof (but not less than 8.33%), exercisable during a 30 day window each year commencing on 1 July. The
Slide 28: Key Primary Business Risks
Key Primary Business Risks (Continued) For personal use only Non-core asset sales GPT, in line with its strategy of focusing on domestic core operations and reducing leverage, is undertaking a non- core asset realisation program. The assets identified for sale include: - The Australian hotel / tou
Slide 29: Other General Business Risks
Other General Business Risks For personal use only Property risks Property assets are by their nature illiquid investments. Therefore, it may not be possible for GPT to dispose of assets in a timely manner To the extent that GPT invests in properties for which there may be only a limited number
Slide 30: Other General Business Risks
Other General Business Risks (Continued) For personal use only Capital expenditure The risk of unforeseen capital expenditure requirements may impact returns to investors Fixed nature of significant costs Significant expenditures associated with each investment, such as mortgage payments, mainte
Slide 31: Other General Business Risks
Other General Business Risks (Continued) For personal use only Conflicts of interest with joint venture partners GPT currently undertakes joint ventures with co-owners on asset ownership and business partners on development projects At times, major decisions are and will be required to be made i
Slide 32: Other General Business Risks
Other General Business Risks (Continued) For personal use only Litigation and disputes Slater and Gordon Lawyers have announced an intention to bring a class action against GPT on behalf of those who purchased securities in the period 28 February 2008 to 6 July 2008. GPT denies that there is a pro
Slide 33: Other General Business Risks
Other General Business Risks (Continued) For personal use only Environmental matters GPT will, from time to time, be exposed to a range of environmental risks including soil and water contamination, construction (lead paint, asbestos, PCBs), cultural heritage (Aboriginal), flora and fauna (native
Slide 34: Other General Business Risks
Other General Business Risks (Continued) For personal use only Occupational health and safety The risk that GPT fails to comply with the necessary occupational health and safety legislative requirements across the jurisdictions that GPT operates in that could result in fines, penalties and compens
Slide 35: General Market Risks
General Market Risks For personal use only Negative effects of market influences The price of securities on ASX may rise or fall due to numerous factors which may affect the market performance of GPT, including: - Australian and international general economic conditions, including fluctuations in
Slide 36: Appendix B: International Selling Restrictions
For personal use only Appendix B International Selling Restrictions NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 37: International Selling Restrictions
International Selling Restrictions For personal use only The retail offer booklet is being sent to eligible retail securityholders on the register as at 7.00pm Singapore (Sydney time) on the record date with registered addresses in Australia and New Zealand. Neither This document and any other mater
Slide 38: International Selling Restrictions
International Selling Restrictions For personal use only Hong Kong (b) at any time to legal entities which are authorized or regulated to operate in the financial The contents of this document have not been reviewed or approved by any regulatory authority in markets or, if not so authorized or regul
Slide 39: International Selling Restrictions
International Selling Restrictions (Continued) For personal use only Switzerland Norway Neither the Securities nor the Entitlements may be publicly offered, sold or advertised, directly or The Disclosure Materials have not been approved by, or registered with, any Norwegian securities indirectly, in
Slide 40: International Selling Restrictions
International Selling Restrictions (Continued) For personal use only Ireland Sweden This document is not a prospectus and has not been prepared in accordance with the prospectus This document and any other materials in connection with the Offer relating to Ireland do not requirements under the Swedi