Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — FY2011 Earnings Presentation
16 slides from Growthpoint Properties Australia's earnings presentation, Aug 22, 2011
Slide 1: Annual Results Presentation, Year Ended 30 June 2011
For personal use only Growthpoint Properties Australia Annual Results Presentation Year Ended 30 June 2011 22 August 2011
Slide 2: Contents
Contents For personal use only 1 Glossary & Disclaimer 2 Overview 3 Financial Results 4 Distributable Income 5 Financial Position 6 Debt & Capital Management 7 Property Portfolio 8 Changes in Equity 9 Comparative Returns & Focus 10 Property Market Overview 11 Strategy 12 Summary & Outlook Timothy Co
Slide 3: Glossary & Disclaimer
Glossary & Disclaimer For personal use only A-IFRS Australian International Financial Reporting Standards A-REIT Australian Real Estate Investment Trust cps cents per stapled security dps distributions per stapled security Energex Nundah the building to be constructed at 1231-1241 Sandgate Road, Nun
Slide 4: Overview
Overview For personal use only FY11 Results •Statutory profit of $43.4m in line with •Distributable Income of $36.4m guidance •Distributions paid/payable of 17.1 cps (+22% of FY10 on 14.0 cps), consistent with market guidance • Direct property acquisitions and takeover of Rabinov Property Trust addi
Slide 5: Financial Results
Financial Results For personal use only FY2011 FY2010 CHANGE % CHANGE Statuatory accounting profit ($'000) 43,373 46,694 (3,321) -7% Distributable income ($'000) 36,407 22,452 13,955 62% Distributions paid / payable ($'000) 36,480 22,347 14,133 63% Distributions per security (cents) 17.1 14.0 3.1 22
Slide 6: Distributable Income
Distributable Income For personal use only FY2011 ($'000) FY2010 ($'000) CHANGE ($'000) % CHANGE Property income 88,419 66,909 21,510 32% Property expenses (9,217) (7,608) (1,609) 21% Net property income 79,202 59,301 19,901 34% Interest income 863 279 584 209% Other income 2,166 - 2,166 N/A Total o
Slide 7: Financial Position
Financial Position For personal use only Assets JUNE 2011 ($'000) JUNE 2010 ($'000) • Significant property asset growth to $1.16bn ($1.24bn including Energex Cash and cash equivalents 24,144 16,739 Nundah) Investment properties 1,157,703 747,300 • NTA substantially consistent with prior year. No sig
Slide 8: Debt & Capital Management
Debt & Capital Management For personal use only • Capital raising proceeds used to reduce debt. On the commencement of the new debt facility on 15 August 2011, LVR decreased to 50.2% and balance sheet gearing decreased to 48.6% (versus a facility default LVR of 65%) • Lending margin of 2.00% p.a. lo
Slide 9: Property Portfolio
Property Portfolio • Since 2009, the property portfolio has increased by circa 92% via the acquisition of 16 quality assets. GOZ’s Assets Acquired For personal use only acquisitions have increased distributions to investors PROPERTY ADDRESS DATE SECTOR PRICE INITIAL YIELD WALE AT ($m) ACQUISITION an
Slide 10: Property Portfolio: Lease Expiry Profile
Property Portfolio For personal use only Lease Expiry Profile – by income • GOZ’s portfolio is characterised by quality tenants and a 1 long WALE 82% 0.8 • Current WALE is 9.0 years, one of the longest of any ASX listed A-REIT 0.6 • Active asset management has been successfully employed to reduce an
Slide 11: Property Portfolio: Geographic and Sector Diversification
Property Portfolio For personal use only • GOZ has a well diversified portfolio geographically, with assets in each state. The portfolio has a 78% weighting to the key Australian Eastern Seaboard States • GOZ has successfully executed its diversification strategy throughout FY11 having moved from 10
Slide 12: Changes in Equity
Changes in Equity For personal use only Over 2 years GOZ has: • Undertaken a placement, 3 rights issues and a scrip takeover, raising over $450m in new equity • Increased its share price from $1.56 to $1.90 (closing prices at 30 June) • Paid or declared distributions totalling over $70m • Increased
Slide 13: Comparative Returns & Focus
Comparative Returns & Focus For personal use only COMPARATIVE RETURNS 5 AUGUST 2009 - 30 JUNE 2011* COMPARATIVE RETURNS FOR YEAR ENDED 30 JUNE 2011 Cash1 4.2% 2 Australian Bonds 5.4% 4 Australian Shares 8.7% 3 A-REITS (Listed Property) 11.1% 5 GOZ 22.9% * All figures are annualised • Since August 20
Slide 14: Strategy
Strategy For personal use only Industrial Office Retail • Quality base of industrial • Preferred sector of new • Lowest yielding asset class properties of $813.1m investment • Market uncertainty due to online • Market changing in AUS with • Office markets to outperform retailing, changing retail new
Slide 15: Strategy: Transactional ability and benefits of growth
Strategy For personal use only Demonstrated transactional ability Benefits of Growth • Individual property acquisitions • Diversify property portfolio • Examples: World Park Office Building, Adelaide ($46.5 m); and • Returns from property sectors are different over time Coles, Goulburn ($65.5m) • Te
Slide 16: Summary & Outlook
Summary & Outlook For personal use only • GOZ – simple and proven business model • Hold a quality, diversified property portfolio with quality tenants. 100% occupancy and long WALE of 9.0 years • The assets are owned “on balance sheet” and are controlled by GOZ • Revenue of GOZ comes from rent from
Growthpoint Properties Australia — FY2011 Earnings Presentation on 6ix