Goodman Group · ASX:GMG
Goodman — Investor Presentation (June 2012)
41 slides from Goodman's investor presentation, Jun 20, 2012
Slide 1: Investor update
Goodman Group Investor update 20 June 2012 building the future+
Slide 2: Important notice and disclaimer
Important notice and disclaimer + This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL Number 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839)). This document is a prese
Slide 3: Contents
Contents + Section 1 Quarterly operational highlights + Section 2 Regional updates – North America – Australia – New Zealand – Greater China – Japan – Continental Europe – United Kingdom + Section 3 Funds management + Section 4 Global platform 3
Slide 4: Section 1: Quarterly operational highlights
Section 1+ Quarterly operational highlights Rheinberg Logistics Centre, Germany
Slide 5: Quarterly operational highlights
Quarterly operational highlights Local expertise and capital partnering approach to new markets + Established North American operating platform with local operator having 73 years of experience: – Secured 4 sites with an end value in excess of US$700 million to be completed over the next four years
Slide 6: Quarterly operational highlights
Quarterly operational highlights1 + High occupancy maintained at 96% across all markets + Retention at 78% and WALE of 5.2 years Own + 1.5 million sqm leased year to date – representing $148 million in annual rental income across the Group and managed funds + Rental reversion of 0.7% on new leasing
Slide 7: Section 2: Regional updates
Section 2+ Regional updates Interlink, Hong Kong
Slide 8: North America
North America+ Brandon Birtcher, CEO North America Kroger Distribution Center, United States
Slide 9: North America strategic rationale
North America strategic rationale Access to top tier + Access to strong land venture opportunities in A-class markets across North America sites and + Opportunity to have a local team join Goodman with a proven track record in development and long-term development relationships in the North American
Slide 10: Capital partnership approach
Capital partnership approach + Goodman has agreed commercial terms for a new partnership to undertake logistics development and ownership in North America: – Partnership to be known as Goodman North America Partnership (GNAP) – Platform, team, investment strategy and target markets endorsed by capit
Slide 11: Birtcher overview
Birtcher overview + Birtcher is an industrial and logistics focused real estate developer with over 73 years experience + Birtcher entities have developed more than 5.6 million sqm (60 million sqf) of projects over the past 40 years + Developed logistics product for leading logistics providers, reta
Slide 12: Selected past developments
Selected past developments + Kroger Distribution Center, Paramount, CA + Corona Crossroads, Corona, CA − Developed for Kroger − Multiple tenants − Strategic regional dry warehouse and distribution − Industrial and cold storage distribution − 51,271 sqm (551,879 sqf) / total cost US$64 million − 75,6
Slide 13: Senior management team
Senior management team CEO North America (Brandon Birtcher) Head of Equities & Chief Development COO US General Counsel US Funds Management US Officer US (Dan Grable) (Alan Cockburn) (Aaron Morgan) (Shannon Hondl) Brandon Birtcher fourth- generation family business owner. Has personally overseen 10
Slide 14: Investment strategy and target markets
Investment strategy and target markets + Investment strategy designed to secure opportunities on a through cycle basis: – Total return focus that recognises both short and long term opportunities – Returns currently maximised through development led opportunities – Flexibility retained to take advan
Slide 15: Secured development sites
Secured development sites LA – Inland Empire Oakland Lehigh Valley – Philadelphia Land area 267 acres Land area 19 acres Land area 278 acres (3 stages) GLA 440,946 sqm / 4.7 million sqf GLA 34,813 sqm / 374,725 sqf GLA 438,468 sqm / 4.7 million sqf Use Warehouse Use Warehouse Use Warehouse End value
Slide 16: Australia
Australia+ Jason Little, General Manager Australia Westpark Industrial Estate, Australia
Slide 17: Australia
Australia1 Strategy Milestones + Australia’s largest industrial and business space provider + Overall occupancy 98%: − Retention 73% + High quality property portfolio > 80% located in Sydney − Incentives 6% Own and Melbourne − Rental growth 0.6%, resulting in positive valuations + Steady valuation g
Slide 18: Australia continued
Australia continued As at 31 March 2012 (A$) GAIF GTA GADF KGIT1 GMG Total assets $4.7 bn $2.7 bn $0.2 bn $0.4 bn $2.6 bn GMG co-investment 43.4% 19.9% 20.0% 40.0% - GMG co-investment $1.1 bn $0.3 bn $0.02 bn $0.1 bn - Number of properties 107 57 2 6 32 Occupancy 98% 98% 100% 100% 97% Weighted avera
Slide 19: New Zealand
New Zealand+ John Dakin, CEO New Zealand Highbrook HDL, New Zealand
Slide 20: New Zealand
New Zealand Strategy Milestones + Overall occupancy 96%: + Largest industrial and business space provider in NZ − Retention 84% + High quality property portfolio predominately located in − Incentives < 10% Auckland − WALE 5.4 years Own + Capital recycled from asset sales into value adding + Leverage
Slide 21: New Zealand continued
New Zealand continued As at 31 March 2012 (A$) GMT Highbrook Development Limited GMG Development Land Total assets $1.3 bn $0.5 bn $0.04 bn GMG co-investment 17% 25% 100% GMG co-investment $0.1 bn $0.1 bn $0.04 bn Number of properties/estates 22 - - Occupancy 96% - - Weighted average lease expiry 5.
Slide 22: Greater China
Greater China+ Philip Pearce, Managing Director Greater China Pudong International Airport Logistics Park, China
Slide 23: Greater China
Greater China Strategy Milestones + Pre-eminent provider of logistics space in Hong Kong + Overall occupancy 99%: + To be positioned as clear number 2 in the China market within − Retention 71% the next 18 months − Incentives < 10% − Rental growth 8.5%, resulting in positive valuation Own + Increase
Slide 24: Greater China continued
Greater China continued As at 31 March 2012 (A$) GHKLF GCLH CIIL GMG Total assets $1.6 bn $0.3 bn $0.3 bn $0.2 bn GMG co-investment 20.0% 20% - 100% GMG co-investment $0.2 bn $0.03 bn - $0.2 bn Number of properties 14 7 1 - Occupancy 99% 99% 99% - Weighted average lease expiry 2.7 years 2.9 years 4.
Slide 25: Japan
Japan+ Paul McGarry, President & CEO Goodman Japan Limited Kobe, Japan
Slide 26: Japan
Japan Strategy Milestones + Modern properties in prime Osaka and Tokyo locations + Maintain occupancy >95% characterised by lack of + Overall occupancy 97%: Own supply − Average building age < 5 years + Increase investor base in Goodman Japan Core Fund − WALE 4.5 years (GJCF) + Structural changes dr
Slide 27: Japan continued
Japan continued As at 31 March 2012 ($A) GJCF1 GJDP2 Total assets (properties) $0.6 bn $0.5 bn3 GMG co-investment - 100% GMG co-investment - $0.1 bn Number of properties 10 2 Occupancy 97% - Weighted average lease expiry 4.5 years - 1. Goodman Japan Core Fund, formerly known as MGJLF 2. Goodman Japa
Slide 28: Continental Europe
Continental Europe+ Danny Peeters, CEO Continental Europe Nurnberg, Germany
Slide 29: Continental Europe
Continental Europe Strategy Milestones + Overall occupancy 96%: + Europe’s second largest logistics provider − Retention 88% + High quality portfolio > 80% located in Western Europe − Incentives < 10% Own − WALE 4.75 years + Active asset recycling to maintain quality of the portfolio + Valuations re
Slide 30: Continental Europe continued
Continental Europe continued As at 31 March 2012 (A$) GELF GPH (LUX) GEBPF GMG Total assets $2.2 bn $0.14 bn $0.3bn $0.1 bn GMG co-investment 30.8% 20% 15.5% - GMG co-investment $0.4 bn $0.03bn $0.05bn - Number of properties 92 5 5 1 Occupancy 97% 100% 77% 99% Weighted average lease expiry 4.9 years
Slide 31: United Kingdom
United Kingdom+ Charles Crossland, MD UK Logistics & Jim Johnston, MD UKBP Andover, United Kingdom
Slide 32: United Kingdom
United Kingdom Strategy Milestones + Premier business park and logistics landlord in UK + High quality portfolio located in South East and Midlands + Overall occupancy 89% Own + Active trading of the portfolio at optimal pricing or − Retention 60% through re-gearing initiatives − WALE 5.3 years + Ex
Slide 33: United Kingdom continued
United Kingdom continued As at 31 March 2012 (A$) ABPP GPH (JER) GMG Total assets $1.7 bn $0.1 bn $0.7 bn GMG co-investment 35.7% 20% - GMG co-investment $0.3 bn $0.01 bn - Number of properties 26 3 11 Occupancy 91% 100% 81% Weighted average lease expiry 6.3 years 4.8 years 3.6 years Asset Sale Deve
Slide 34: Section 3: Funds management
Section 3+ Funds Management - Nick Kurtis, Group Head of Equities Munich Airport Logistics Centre, Germany
Slide 35: Key capital partner trends
Key capital partner trends + Ability to form Investment Committee with like minded partners Strong governance + Visibility over key decisions such as acquisition, structure disposal, development and finance + Usually structured as JV or Club vehicles + Country specific factors remain strong investme
Slide 36: Top Sovereign Funds
Top 12 Sovereign Funds Fund Country Size US$bn TOTAL VALUE OF SOVERIGN 1 ADIA UAE – Abu Dhabi $627 FUNDS GLOBALLY US$5.0 trillion 2 Govt Pension Fund Norway $611 3 SAFE China $568 4 SAMA Saudi Arabia $533 5 CIC China $440 6 KIA Kuwait $296 7 HK Monetary Authority Hong Kong $293 8 GIC Singapore $157
Slide 37: Total value of global pension fund assets
Total value of global pension fund assets Source: Sovereign Wealth Fund Institute - www.swfinstitute.org 37
Slide 38: Top Global Pension Funds
Top 20 Global Pension Funds Fund Country Size US$bn 1 Govt Pension Investment Fund Japan $1,432 2 Govt Pension Fund Norway $550 3 ABP Netherlands $318 4 National Pension Service Korea $289 5 Federal Retirement Thrift United States $264 6 CALPERS United States $214 7 Local Govt Officials Japan $190 8
Slide 39: Section 4: Global platform
Section 4+ Global platform Consolidated Cargo Complex, Hong Kong
Slide 40: Global platform
Global platform - Europe/UK A$1.0bn in assets 12 properties 309 people USA : a” A$4.3bn in assets 4 : 24 people 147 properties + Total GMG Managed Funds A$3.7bn in assets A$15.5bn in assets 44 properties 350 properties 890 people ‘ Current Goodman global presence As at 31 March 2012 (Australian curr
Slide 41: Thank you
thank+you Important Notice This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839)). The details in this presentation provid