Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — Non-Deal Roadshow (October 2016)
49 slides from Growthpoint Properties Australia's roadshow presentation, Oct 3, 2016
Slide 1: Joint GRT & GOZ Non-deal roadshow
GRT: Growthpoint Properties Limited www.growthpoint.co.za GOZ: For personal use only 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 Joint GRT & GOZ Non-deal roadsh
Slide 2: Important information
Important information Disclaimer Financial Information gearing. Forward looking statements, opinions and estimates are based For personal use only This presentation and its appendices (“Presentation”) is dated 3 October Information for GRT is shown in South African Rand and for GOZ in on assumptions
Slide 3: Contents
Contents For personal use only Presenters 4 FY16 office acquisitions 34 FY16 industrial acquisitions 35 Growthpoint Properties Limited of South Africa (GRT) 5 Debt Management – Gearing 36 FY16 Highlights 6 Operating expenses and capital expenditure 37 Growth in dividends, tangible assets and market
Slide 4: Presenters
Presenters For personal use only Norbert Sasse Timothy Collyer Aaron Hockly Chief Executive Officer - GRT, Managing Director - GOZ Chief Operating Officer -GOZ Director - GOZ B.Bus (Prop), Grad Dip Fin & Inv, AAPI, F BA, LLB, GDLP, GradDipAcg, MAppFin, BCom (Hons) (Acc), CA (SA) Fin, MAICD FCIS, MAI
Slide 5: Growthpoint Properties Limited of South Africa (GRT)
GRT is the largest primary JSE listed REIT in South Africa. Included in the JSE Top 40 Index and with a market capitalisation of over USD 5.3 billion, GRT offers the largest and most liquid way to gain exposure to commercial For personal use only property in South Africa. GRT has property investment
Slide 6: GRT: FY16 highlights
GRT: FY16 highlights For personal use only R112.5bn Dividend per share of 183.3 cents representing growth of 6.0% property assets 27.2% 26.1% expense -to-income RSA expenses under control growth in gross revenue 27.8% FY15 R5.1bn 30.5% 19.8% distributable income growth loan-to-value ratio 5.7% RSA g
Slide 7: GRT: Highlights
GRT: Highlights For personal use only #1 Top 5 % Excellent corporate governance largest South African, Constituent FTSE Russell primary listed REIT EPRA/NAREIT Emerging Index % Transparent reporting R3.8bn 7th year % Sustainable quality of average value Inclusion in FTSE/JSE earnings traded/month Re
Slide 8: GRT: Growth in dividends, tangible assets and market capitalisation
GRT: Growth in dividends, tangible assets and market capitalisation For personal use only Growth in dividends cents per share Growth 89.5¢ 94.5¢ 183.8¢ FY16 +6.0% 84.4¢ 44.5¢ 44.5¢ 173.4¢ FY15 +7.5% 78.5¢ 82.8¢ 161.3¢ FY14 +8.3% 72.7¢ 76.3¢ 149.0¢ FY13 +7.2% 67.8¢ 71.2¢ 139.0¢ FY12 +7.2% Interim div
Slide 9: GRT: Contribution to distributable income
GRT: Contribution to distributable income For personal use only RSA V&A Waterfront GOZ 19.8% Listed Investments Growth 21% Growth R5 072m 22 0.4% R4 232m 772 15.2% R3 497m 345 8.2% 429 8.5% 165 4.7% 658 15.5% 513 14.7% 368 8.7% 332 9.5% 3,849 75.9% 2,861 67.6% 2,487 71.7% FY14 FY15 FY16 The Annex, S
Slide 10: GRT: Expense to income ratios (IFRS)
GRT: Expense to income ratios (IFRS) For personal use only RSA Property Expense Ratio V&A Waterfront Property Expense Ratio GOZ Property Expense Ratio Operating Expense Ratio 30.7% 30.8% 29.9% 28.6% 27.8% 27.2% 2.9% 3.1% 3.3% 3.8% 3.8% 2.7% 17.4% 16.8% 16.0% 5.3% 4.8% 27.8% 27.7% 4.4% 26.6% 24.8% 24
Slide 11: GRT: Consolidated balance sheet (extracts)
GRT: Consolidated balance sheet (extracts) For personal use only FY16 FY15 Increase/ (decrease) Rm Rm Rm Property portfolio(1) 104,690 93,574 11.9% RSA 73,752 71,550 3.1% GOZ(2) 30,938 22,024 40.5% 50% Investment in V&A Waterfront 6,616 6,047 9.4% Other property-related investments 440 742 (40.7%) N
Slide 12: GRT: RSA capital management
GRT: RSA capital management For personal use only Moody’s recalibration Debt Funding Equity Funding • National Scale Aaa.za - one of only two SA corporates • Bank margins increased since last year • Global Scale Baa2/P-2 – capped at sovereign rating • Negative outlook – based on that of sovereign •
Slide 13: GRT: RSA diversified borrowings – nominal value
GRT: RSA diversified borrowings – nominal value R25,444m R24,653m For personal use only Secured bank debt 400 Debt 400 Secured institutional financier capital Unsecured bank debt and institutional financier market 2,659 Debt capital Corporate bonds 12.0% market 3,284 Commercial paper Unsecured 14.9%
Slide 14: GRT: Loan to value and interest cover ratios
GRT: Loan to value and interest cover ratios For personal use only 42.0% 40.6% 36.8% 33.2% 33.7% 32.1% 30.5% 30.8% 27.4% 3.5x 3.7x 3.8x 3.4x 3.2x 3.3x 3.4x 3.3x 2.9x FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 South Africa GOZ (2) Group LTV (1) LTV (1) LTV (1) Interest cover ratio (incl V&A) Intere
Slide 15: GRT: Portfolio highlights
GRT: Portfolio highlights For personal use only V&A Waterfront Australia Retail Office Industrial (50%) (GOZ) Total Portfolio Value R29.2bn R33.3bn R11.3bn R7.8bn R30.9bn R112.5bn* Properties (No.) 58 182 227 1 58 526 NLA (square 1.4m 1.8m 2.3m 0.2m 1.1m 6.8m metres) *Includes 100% of GOZ and 50% of
Slide 16: GRT: Consolidated portfolio overview
GRT: Consolidated portfolio overview For personal use only Net property income Property portfolio (by value) as at 30 June 2016 as at 30 June 2016 RSA 70.7% RSA 65.6% GOZ 23.6% GOZ 27.5% V&A Waterfront 5.7% V&A Waterfront 6.9% Greenfield Industrial Park, Cape Town GRT & GOZ Joint Non-deal roadshow –
Slide 17: GRT: Retail
GRT: Retail For personal use only Net property income Leasing FY16 FY15 • Increased 45.5%; Acucap & Sycom • Renewal success rate improved to Size of Portfolio Rm Rm portfolio included for a full 12 months 89.3% but at the expense of lower Net property income 2,139 1,470 escalation on renewal rentals
Slide 18: GRT: Office
GRT: Office For personal use only Net property income • Arrears were however well contained FY16 FY15 at 3.7% of collectables • NPI increased 24.4%, mainly due to • Legal matters account for R8.6m of Size of portfolio Rm Rm the acquisition of Acucap & Sycom this balance, of which R7.8m was Net prope
Slide 19: GRT: Industrial
GRT: Industrial For personal use only Net property income Leasing FY16 FY15 • NPI increased 6.7% despite difficult • Manufacturing sector impacted by Size of portfolio Rm Rm trading conditions for our clients the weak macro; as such rentals have Net property income 952 892 come under pressure • “lik
Slide 20: GRT: Property investment activities
GRT: Property investment activities For personal use only R840.5m Acquisitions R1.1bn Disposals R2.4bn Development & capital expenditure R1.7bn Commitments The Towers, Sandton GRT & GOZ Joint Non-deal roadshow – Singapore, Hong Kong & Tokyo | 3 October 2016 20
Slide 21: Growthpoint Properties Australia (GOZ)
For personal use only Growthpoint Properties Australia (GOZ) Building B, 211 Wellington Road, Mulgrave, VIC
Slide 22: GOZ: Overview
GOZ: Overview Our “pure landlord” investment philosophy For personal use only What is GOZ? GOZ’s history 1 100% investment GOZ is an ASX-listed landlord with a GOZ commenced in its current form in Australia mandate to invest in Australian office, in 2009 with $650 million of industrial All of GOZ’s
Slide 23: GOZ: Key metrics as at October 2016
GOZ: Key metrics as at 1 October 2016 For personal use only 21.3cps Top ten tenants by passing rent as at 1 October 2016 WALE Portfolio lease expiry profile per financial year, as at 1 October 2016 distribution guidance FY17* % (yrs) 1% Vacant Woolworths Limited 18 5.9 3% FY17 42.5% NSW Police Commo
Slide 24: GOZ: Key metrics (cont.)
GOZ: Key metrics (cont.) For personal use only Over Property portfolio overview 59,000 sqm Number of properties no. Office1 26 Industrial 37 Total 63 of new and extended leasing during FY16, and over Total property value / average property value $m 2,035.5 / 78.3 1,226.4 / 33.1 3,261.9 / 51.8 39,000
Slide 25: GOZ: Key metrics (cont.)
GOZ: Key metrics (cont.) For personal use only Securityholder returns 19.6% p.a. 7.4% Total Securityholder return FY16 total Securityholder for 5 years to 30 June 2016 1 return1 At least 21.9cps 22.2cps FY16 distributable income FY17 distributable income guidance2 above guidance and 3.3% above FY15
Slide 26: GOZ: Key metrics (cont.)
GOZ: Key metrics (cont.) For personal use only FY16 distribution guidance of 20.5cps 21.3cps achieved FY17 distribution guidance 55.5% tax deferred, 0.9% tax free. 3.9% above FY161 Gearing increased to 4.2yrs 42.6% from 37.0% at 30 June 2015. Weighted average debt term at 30 June 2016 Within target
Slide 27: GOZ: Adding value for Securityholders through our transparent business model
GOZ: FY16: $40.1m new equity capital 1 & $250m new debt capital (FY15: Adding value for FY16: Distributions of $118.1m paid to Securityholders, 20.5cps Raise Capital: $73.7m and $200m). For personal use only (FY15: $110.7m, 19.7cps). Securityholders Payout ratio of 93.7% (FY15: 93.1%). Raise equity
Slide 28: GOZ: GMF takeover
GOZ: GMF takeover For personal use only • $321 million takeover for GPT Metro Office Fund (GMF) announced on 1 July 2016 • Over 95% acceptances as of 1 October 2016. Takeover substantially complete and accounting for 100% from 1 October 2016 • GMF comprises six A-grade office properties with a 5.5 y
Slide 29: GOZ: GMF takeover (cont.)
GOZ: GMF takeover1 (cont.) For personal use only 1 2 3 4 5 6 GMF key statistics GMF property portfolio statistics (as at 30 June 2016) Book Cap Lettable Site value rate WALE area area Major tenant —— $440.3 million total property $m % years sqm sqm value 1 15 Green Square Close, Fortitude Valley, QL
Slide 30: GOZ: Equity capital
GOZ: Equity capital For personal use only Market capitalisation and free float GOZ Securityholders1 Location of GOZ As at 1 October 2016 Securityholders1 As at 1 October 2016 $2.2bn $770.0m as at 1 October 2016 $1,836.8m $633.7m as at 30 June 2016 $1,781.1m $623.9m as at 30 June 2015 $1,323.3m GRT 6
Slide 31: GOZ: Relative income yields and trading premium
GOZ: Relative income yields and trading premium For personal use only Relative income yields Security price premium (discount) to NTA 6.2% GOZ forecast distribution yield1 45% 5.3% A-REIT forecast distribution yield2 40% 5.0% Australian Shares forecast distribution yield3 35% 1.98% Commonwealth Gove
Slide 32: GOZ: Leasing
GOZ: Leasing Leases completed in FY16 For personal use only Term Annual rent NLA Car Address Sector Tenant Start date (yrs) increases (%) (sqm) Parks A1, 32 Cordelia St South Brisbane QLD Office Jacobs Group (Australia) Q4, FY15 11.4 Fixed 3.75 6,896 50 A1, 32 Cordelia St South Brisbane QLD Office J
Slide 33: GOZ: Leasing (cont.)
GOZ: Leasing (cont.) Leases completed since 30 June 2016 For personal use only Term Annual rent NLA Address Sector Tenant Start date (yrs) increases (%) (sqm) Car Parks Part Level 9, 333 Ann Street Brisbane CBD QLD Office St Hilliers Property Q2, FY17 5.0 Fixed 3.75% 480 – Building 1, 572-576 Swan S
Slide 34: GOZ: $287.8 million of office acquisitions in FY16
GOZ: $287.8 million of office acquisitions in FY16 For personal use only Office portfolio value as at 30 June FY16 $1,596.2m FY15 $1,206.6m FY14 $1,049.8m FY13 $797.3m FY12 $800.6m 75 Dorcas Street, 255 London Circuit, Building C, 211 Wellington South Melbourne, VIC Canberra, ACT Road, Mulgrave, VIC
Slide 35: GOZ: $42.1 million of industrial acquisitions in FY16
GOZ: $42.1 million of industrial acquisitions in FY16 For personal use only Industrial Portfolio value at 30 June FY16 $1,236.3m FY15 $1,165.9m FY14 $1,043.9m FY13 $897.2m FY12 $834.2m 1-3 Pope Court, 34 Reddalls Road, Beverley, SA Kembla Grange, NSW Number of properties Major Tenant: Aluminium Majo
Slide 36: GOZ: Debt management – gearing
GOZ: Debt management – gearing1 For personal use only Summary of debt facilities Gearing & cost of debt Debt term Secured Limit Drawn as at 30 June bank loans ($m) ($m) Maturity 65% 8.0% Weighted average Balance Sheet Gearing All-in cost of debt 60% 7.5% Syndicated Facility 55% 7.0% debt term - Faci
Slide 37: GOZ: Operating expenses and capital expenditure
GOZ: Operating expenses and capital expenditure For personal use only Operating expenses FY16 FY15 FY14 Total operating expenses $’000 10,407 9,123 8,4981 Average gross asset value $’000 2,588,089 2,211,504 1,810,053 Operating expenses to average gross assets % 0.40 0.41 0.47 1. This figure excludes
Slide 38: Appendices
For personal use only Appendices 45-55 South Centre Road, Melbourne Airport, VIC
Slide 39: Appendix 1: GRT's property portfolio
Appendix 1: GRT’s property portfolio For personal use only Retail Office Industrial RSA Total GOZ (1) (3) V&A (1) Number of properties 58 182 227 467 58 1 GLA (sqm) 1,420,570 1,799,391 2 251 089 5,471,050 1,109,545 206,838 Vacancy (sqm) 36,422 140,728 134 409 311,559 3,850 2,993 Vacancy (%) 2.6 7.8
Slide 40: Appendix 2: GRT – debt expiry profile per financier RSA
Appendix 2: GRT – debt expiry profile per financier RSA For personal use only 19% 19% 19% 18% 12% 7% 6% 0% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 ABSA Nedbank China Construction Omsfin Investec RMB JSE (Corporate Bonds) Standard Bank LibFin GRT & GOZ Joint Non-deal roadshow – Singapore, Hong Kong &
Slide 41: Appendix 3: GRT – fixed interest rate expiry profile RSA
Appendix 3: GRT – fixed interest rate expiry profile RSA For personal use only 26% 15% 14% 13% 11% 9% 8% 0% 4% Floating FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 GRT & GOZ Joint Non-deal roadshow – Singapore, Hong Kong & Tokyo | 3 October 2016 41
Slide 42: Appendix 4: GRT – Retail overview (RSA)
Appendix 4: GRT – Retail overview (RSA) Top 10 properties by value Fair value GLA Top 10 tenants GLA(1) For personal use only Rm sqm sqm Brooklyn Mall and Design Square (75%), Brooklyn, Pretoria 2,262 55,940 Edcon Holdings Ltd 128,757 Festival Mall, Kempton Park, Johannesburg 1,580 83,617 The Foschi
Slide 43: Appendix 5: GRT – Office overview (RSA)
Appendix 5: GRT – Office overview (RSA) Top 10 properties by value Fair value GLA Top 10 tenants GLA(1) For personal use only Rm sqm sqm Investec, 100 Grayston Drive, Sandton, Johannesburg 2,223 70,945 Investec Bank Ltd 83,781 The Woodlands, Woodmead, Johannesburg 2,010 119,261 Deloitte (South Afric
Slide 44: Appendix 6: GRT – Industrial overview (RSA)
Appendix 6: GRT – Industrial overview (RSA) Top 10 properties by value Fair value GLA Top 10 tenants GLA(1) For personal use only Rm sqm sqm Growthpoint Industrial Estate, Meadowdale, Germiston 404 61,246 The Bidvest Group Ltd 52,329 Hilltop Industrial Estate, Elandsfontein, Johannesburg 342 76,283
Slide 45: Appendix 7: GRT – split of V&A Waterfront property portfolio
Appendix 7: GRT – split of V&A Waterfront property portfolio For personal use only Property portfolio by value Property portfolio by GLA Developed vs. undeveloped Net property income as at 30 June 2016 as at 30 June 2016 by value as at 30 June 2016 as at 30 June 2016 Retail 53% Retail 23% Developed
Slide 46: Appendix 8: GOZ – top five office properties by value
Appendix 8: GOZ – top five office properties / property groups by value For personal use only SW1 Complex, 1 Charles Street, 75 Dorcas Street, Buildings 1, 2, & 3, Building C, South Brisbane, QLD Parramatta, NSW South Melbourne, VIC 572-576 Swan Street, 219-247 Pacific Highway, Richmond, VIC Artarmo
Slide 47: Appendix 9: GOZ – top five industrial properties by value
Appendix 9: GOZ – top five industrial properties / property groups by value For personal use only 70 Distribution Street, 20 Colquhoun Road, Linfox Properties, 120 Northcorp Boulevard, 599 Main North Road, Larapinta, QLD Perth Airport, WA Erskine Park, NSW Broadmeadows, VIC Gepps Cross, SA Distribut
Slide 48: Glossary
Glossary For personal use only $ refers to Australian currency for GOZ (unless otherwise indicated) NTA net tangible assets AFSL Australian Financial Services Licence Return on equity calculated as the percentage change in NTA plus the distribution for A-REIT Australian Real Estate Investment Trust
Slide 49: For more information contact us
For more information contact us at: For personal use only GRT: Lauren Turner Head, Investor Relations Tel:+27 (0) 11 944 6346 Fax:+27 (0) 86 649 6666 LTurner@growthpoint.co.za www.growthpoint.co.za GOZ: Aaron Hockly Chief Operating Officer Tel: +61 3 8681 2900 Fax: +61 3 8681 2910 aaron.hockly@growt
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