Gdi Property Group · ASX:GDI
Gdi Property — H1 FY2018 Earnings Presentation
33 slides from Gdi Property's earnings presentation, Feb 19, 2018
Slide 1: GDI Property Group Half yearly results presentation
For personal use only GDI PROPERTY GROUP Half yearly results presentation 19 February 2018
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
For personal use only INTRODUCTION LINKING EQUITY MILL GREEN, TO PERFORMANCE PERTH 2
Slide 4: Overview
Overview For personal use only NTA – $1.12 per security FFO of 3.865 cents per Distribution of 3.875 cents per security security Securityholder return in the Absolute Total Return in the Loan to value ratio on Principal period of 25.73% period of 3.84% Facility of 9.5% LINKING EQUITY TO PERFORMANCE
Slide 5: Operational highlights
Operational highlights… Transactions Sold 66 Goulburn Street, Sydney, for $252.0 million, having bought it for $136.0 million in July 2014 For personal use only Bought Westralia Square, 141 St Georges Terrace, Perth, for $216.25 million, or $6,626/sqm, heavily weighting the wholly owned portfo
Slide 6: …leads to financial success
…leads to financial success NTA1 of $1.12 per security Absolute total return For personal use only on 30 June 2017 NTA per security of $1.12 20% Profit on sale of 66 Goulburn Street, Sydney (+$5.0 million) and 18% valuation gain at 50 Cavill Avenue, Surfers Paradise (+$10.5 million) 16% largel
Slide 7: Financial results
For personal use only FINANCIAL RESULTS LINKING EQUITY 66 GOULBURN TO ST, PERFORMANCE SYDNEY 6
Slide 8: Contributors to FFO and AFFO
Contributors to FFO and AFFO Property Division FFO primarily due to the significantly smaller size of Dec 17 Dec 16 the portfolio compared to the corresponding period For personal use only $’000 $’000 For the two assets held for both periods Property Division FFO 23,255 31,233 50 Cavill Avenue
Slide 9: Balance sheet in a strong position
Balance sheet in a strong position Dec-17 Jun-17 Pro forma for post balance sheet events $'000 $'000 For personal use only Current assets Cash and cash equivalents 16,818 23,113 Trade and other receivables 3,690 3,122 Non-current assets held for sale - 223,000 Other assets 10,078 1,705 Total current
Slide 10: Debt profile and interest rate hedging
Debt profile and interest rate hedging As at 31 December 2017, drawn debt on the Principal Facility of $59.4 Board hedging policy of at least 50% of drawn debt hedged million Maintained hedging at the bottom of the range since IPO until For personal use only Undrawn debt of $55.6 million to
Slide 11: The property portfolio
For personal use only THE PROPERTY PORTFOLIO LINKING 235 EQUITY STANLEY TO PERFORMANCE STREET, TOWNSVILLE 10
Slide 12: Portfolio overview
Portfolio overview For personal use only LINKING EQUITY TO PERFORMANCE 11
Slide 13: For personal use only
12 Treasury Exchange Plaza Elizabeth Quay St Martins Tower Allendale Square BCG Centre 100 SGT 108 SGT 140 SGT Quadrant Brookfield Place 2 BHP Convention Centre Westralia Square Alluvion Mill Green Forrest Centre 225 SGT LINKING EQUITY TO PERFORMANCE Old Woodside Perth CBD QV1 (Chevron) New Woodside
Slide 14: Perth market
Perth market Supply constrained 60,000 For personal use only 50,000 40,000 “The overall office vacancy rate in the Perth CBD has already 30,000 peaked and is now in a steady downward trend, according to the 20,000 latest Office Market Report by the Property Council of Australia. 10,000 0 The overall
Slide 15: Perth market – JLL investment matrix
Perth market – JLL investment matrix 2018 For personal use only Strategic Divestment Maximum Returns ‘Expensive’ / Strong Rental Growth ‘Cheap’ / Strong Rental Growth Sydney & Melbourne Canberra ‘Expensive’ / Weak Rental Growth ‘Cheap’ / Weak Rental Growth Adelaide Brisbane Perth 2020 Strategic Dive
Slide 16: St Georges Terrace, Perth
197 St Georges Terrace, Perth By taking a patient approach to leasing vacant space Key metrics as at: Dec-17 Jun-17 achieving effective rents in excess of market and most For personal use only recent valuation Independent valuation date Dec-17 Dec-16 Based on current enquiry levels, anticipate t
Slide 17: St Georges Terrace, Perth
197 St Georges Terrace, Perth Key What we disclosed in August 2017 Current For personal use only Leasing strategy of bottom up, with patience to allow the market to meet our expectations of effective rents 24 AKER SOLUTIONS (Feb 2018) Likely departure, excellent 360 degree views. Last floor to
Slide 18: Mill Street, Perth
5 Mill Street, Perth 5 Mill Street now fully occupied Key metrics as at: Dec-17 Jun-17 Achieved outstanding results from small (<200sqm) For personal use only fitted out suites Independent valuation date Dec-17 Dec-16 Very manageable FY18, FY19 lease expiry profile Independent valuation ($M) 5
Slide 19: Mill Street, Perth
1 Mill Street, Perth Signed a Memorandum of Understanding with Lendlease Key metrics as at: Dec-17 Jun-17 Development Pty Limited (‘Lendlease’) in relation to all of For personal use only the Mill Green Complex Independent valuation date Dec-17 Dec-16 Any new development would involve demolishin
Slide 20: Westralia Square
Westralia Square Settled the acquisition of Westralia Square on 27 October Key metrics as at: Dec-17 2017 For personal use only Immediately commenced work on refurbishing the Independent valuation date Oct-17 vacant Level 7 to create a show floor, with that work now completed Independent valuati
Slide 21: Cavill Avenue, Surfers Paradise
50 Cavill Avenue, Surfers Paradise Capital expenditure program now all but complete Key metrics as at: Dec-17 Jun-17 Total spent on capex and incentives in line with original For personal use only budget of $16.0 million Independent valuation date Dec-17 Jun-17 Having completed the outdoor are
Slide 22: Liverpool Road, Ashfield
223 – 237 Liverpool Road, Ashfield 100% leased to NSW Government Property (Department Key metrics as at: Dec-17 Jun-17 of Family and Community Services) until 31 December For personal use only 2020 Independent valuation date Jun-17 Jun-17 Significant rent reversion potential, or STCA, redevelopm
Slide 23: Stanley Street, Townsville
235 Stanley Street, Townsville Have responded to an ATO RFP for a new 10 year lease and remain confident on retaining it as a tenant Key metrics as at: Dec-17 Jun-17 For personal use only Have also commenced negotiations with DHS to Independent valuation date Jun-17 Jun-17 renew its lease Lift
Slide 24: Funds business
For personal use only FUNDS BUSINESS LINKING 50 EQUITY CAVILL TO PERFORMANCE AVE, SURFERS PARADISE 23
Slide 25: Funds Management business
Funds Management business Launched and closed the offer of units for GDI No. 43 Property Trust, raising $95.7 million, GDI Property Group’s largest unlisted fund raising to For personal use only date GDI No. 43 Property Trust acquired 6 Sunray Drive, Innaloo, home to Perth’s only IKEA Home Furni
Slide 26: Strategy
For personal use only STRATEGY LINKING 66 EQUITY GOULBURN TO ST, PERFORMANCE SYDNEY 25
Slide 27: CY18 all about asset management
CY18 all about asset management GDI Property Group believes there is significant upside in its portfolio of wholly owned and managed assets and that it can deliver a total return of in excess of 12%p.a. on a rolling three year basis off its current asset base and capital structure For personal use
Slide 28: Why GDI Property Group?
Why GDI Property Group? •Delivered an annualised total return since listing of 13.95% p.a. For personal use only Proven track record •This return has been largely crystallised •Demonstrated restraint, but can still uncover acquisitions (Westralia Square and IKEA) •Market capitalisation of +/- $650 m
Slide 29: Appendix
For personal use only APPENDIX LINKING 235 EQUITY STANLEY TO PERFORMANCE STREET, TOWNSVILLE 28
Slide 30: Profit or Loss
Profit or Loss Group Trust 2017 2016 2017 2016 For personal use only Half year ended 31 December $'000 $'000 $'000 $'000 Revenue from ordinary activities Property income 33,109 38,854 33,109 38,854 Funds management income 918 804 - - Interest income 139 97 112 88 Profit on sale of non-current asset
Slide 31: NPAT to AFFO
NPAT to AFFO For personal use only Group 31 December 2017 31 December 2016 $'000 $'000 Total comprehensive income for the year 19,837 55,601 Portfolio acquisition and other transaction costs 11,784 374 Contribution resulting from consolidation of GDI No. 42 Office Trust (3,089) (3,739) Distributions
Slide 32: Property by property information
Property by property information 31 December 31 December Period ended 31 December 2017 2017 2016 For personal use only $m $m $m Property Incentives Maintenance and Lease AIRFS NPI1 FFO AIRFS NPI1 FFO Capex spent Capex spent costs 1 Mill Street 0.01 5 Mill Street 0.12 197 St Georges Terrace 0.57 Mill
Slide 33: For personal use only
Unsaved Document / 29/07/2013 / 16:23 For personal use only LINKING EQUITY TO PERFORMANCE 32