Gdi Property Group · ASX:GDI
Gdi Property — Bell Potter Emerging Leaders Conference 2025
25 slides from Gdi Property's conference presentation, May 28, 2025
Slide 1: Bell Potter Conference Presentation
ASX ANNOUNCEMENT 28 MAY 2025 BELL POTTER CONFERENCE PRESENTATION GDI1 is pleased to issue the attached presentation which is to be delivered to the Bell Potter Emerging Leaders Conference today. Media Enquiries: Stephen Burns David Williams Managing Director & CEO Chief Financial Officer For persona
Slide 2: For personal use only
For personal use only
Slide 3: 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 units in GDI P
Slide 4: Acknowledgement of Country and contents
Acknowledgement of Country GDI acknowledges and pays respect to the past, present and future Traditional Custodians and For personal use only Elders of this nation and the continuation of INTRODUCTION FINANCIAL SNAPSHOT PERTH MARKET cultural, spiritual and educational practices of Aboriginal and Tor
Slide 5: GDI represents
GDI represents > Office building total return specialist > Perth exposure – Core CBD > Syndication funds business origins > Co-living JV, car parks and car yards exposure Our point of difference > Small team For personal use only > Active with key skills in leasing, asset management, development, ac
Slide 6: Perth Office and Car Park Assets
Mill Green (197 St Georges Terrace + 1 and 5 Mill Street) Westralia Square 1 +2 (141 St Georges Terrace) 301-311 Wellington Street 419 Murray Street Perth 180 Hay Street 1 Adelaide Terrace NLA – 40,445 sqm NLA - 32,598 (WS1) , 9,500 (WS2) sqm NLA 25,000sqm Landholding of 3,667sqm NLA – 4,925 sqm NLA
Slide 7: WS2 – Vision, Collaboration and first-class Partnerships
Awards WS2 – Vision, Collaboration and first-class Partnerships Property Council Awards WA 2024 Winner - Best Innovation Award The vision: to transform an underused annex on the Westralia Square site Commendation - Best Sustainable leveraging strong existing transport and pedestrian networks. Creati
Slide 8: Mill Green Complex at December 2024
MILL GREEN COMPLEX AT 31 DECEMBER 2024 Assisting existing tenants – Transactions with eight existing tenants to assist them to expand, relocate or consolidate within the precinct 197 St Georges Terrace - Leasing up in accordance with our targeted part floor fitout strategy > Leased, renewed or reloc
Slide 9: Financial Snapshot as at 31 December 2024
˃ Weighted average capitalisation rate of 6.7% ˃ Well within policy of sub 40% ˃ Average rate/sqm of NLA of $8,2931 ˃ LVR of 41% (covenant of 50%) and ICR of 2.0X (covenant 1.5X) on the syndicated facility FFO per security (cents) For personal use only 4.0 NTA GEARING 3.5 3.0 3.07 2.5 2.64 2.45 2.0
Slide 10: Highlights from our most recent results
Highlights from our most recent results (6 months to December 2024) > Strong 26% FFO growth over PCP > Featuring 36% Property FFO growth over PCP, reflecting lease-up > Stable $1.19 NTA per security > Co-living JV returns in line with our hurdle of 20% return on initial invested capital > First half
Slide 11: What's happening in the Perth office market?
What’s happening in the Perth office market? > Positive long-term implications of a supply gap are emerging > Low sub-lease space on offer > Upwards pressure on rents expected to lead to strong rental growth in 2027+ > Break even construction rents mooted to be $1,200 - $1,300sqm for For personal us
Slide 12: WA Economy
GSP Growth Population Growth GROSS STATE PRODUCT PROJECTED TO 2031 AVG. OVER 4 YEARS Gross State Product (GSP) growth Total population to increase by 9.0% forecast to average 2.4%p.a. over the to 3.3 million people through 2035 next four years. For personal use only Exports Infrastructure Spend % OF
Slide 13: Perth market strongest performing office market
The Perth market has been the strongest performing office market over the last two years 100.0 80.0 60.0 34.87* For personal use only 40.0 20.0 87.58 63.46 53.78 22.31 0.0 (,000sqm) -99.96 -20.0 -40.0 -60.0 -80.0 -100.0 -120.0 Adelaide CBD Brisbane CBD Melbourne CBD Perth CBD Sydney CBD *Net absorpt
Slide 14: Perth CBD vacancy and tenant demand
Perth CBD Vacancy Perth CBD Tenant New Premises (Re-sizing) – still expanding 45 Expansion 35 No Change JUL 24 DEC 24 Reduction Number of Transactions 15.5% 15.1% 25 15 Why Stable? For personal use only 5 (5) Net Absorption Supply/Withdrawals + 25,186 SQM + 21,288 SQM (15) 2022 2023 2024 Perth CBD O
Slide 15: Supply Gap Emerging 2025-2029
Supply Gap Emerging 2025-2029 Perth CBD Supply Pipeline (% of stock) FORECAST > 10% Supply % of Stock 20-year Average EQ: Lot 4, 21 The Esp. Rolling 3-yr Average EQ: 9 The Esp. 8% For personal use only 6% Last 4-year 4% supply gap 2% 0% -2% -4% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Slide 16: Perth CBD vacancy to trend downwards in 2026
Perth CBD vacancy to trend downwards in 2026 Perth CBD vacancy forecast Net Supply Sqm (RHS) 30% 150,000 Vacancy FORECAST > Vacancy 20K Sqm Net Absorption p.a. 130,000 25% Vacancy 40K Sqm Net Absorption p.a. 110,000 For personal use only 20% 90,000 15% Vacancy 70,000 Supply Sqm Last 4-year supply ga
Slide 17: Our thoughts on various issues: office markets
OUR THOUGHTS ON VARIOUS ISSUES Office markets at or near bottom > Cyclical bottom passed for most Australian office markets > Structural challenges including WFH and ESG are really important when making comparisons > Different timing for each market (Perth, Brisbane, Adelaide, Sydney being the stron
Slide 18: Funds Management and Co-living JV Focus
OUR THOUGHTS ON VARIOUS ISSUES Funds Management Business Focus > Actively realising a number of fund assets (car yards and IKEA) > Focus on optimising the underlying investor returns > Covid added a few years to investor time frames, increasing their desire for liquidity > Remains a yield focussed m
Slide 19: NTA Price Gap
OUR THOUGHTS ON VARIOUS ISSUES NTA Price Gap > Focus on executing on strategy, particularly efforts to increase property FFO > Leasing efforts have boosted occupancy across key properties > Increasing the lease tenure and property income will ultimately help optimise the property value For personal
Slide 20: GDI is well positioned to benefit
GDI is well positioned to benefit For personal use only GDI Approach 19
Slide 21: Business Model
Ensure the GDI skills and capability DRIVEN BY: INVESTMENT matches our ability to execute on our Proposition • Entering and exiting markets and recycling our capital strategy. GDI must have an elite team ACHIEVE OPTIMAL To be the best office building total • To maximise to property RETURNS THROUGH A
Slide 22: Key Statistics
Weighted average lease expiry1 Key Statistics Occupancy1 87% 100% WALE by occupied area1 5.15 years Weighted average capitalisation rate2 6.73% 80% Average value psm3 For personal use only $8,293 Total NLA (sqm)2 123,951 60% 1. Excludes 1 Mill Street but includes the showrooms in the Autoleague port
Slide 23: Property Portfolio
Independent valuation Carrying Value 31/12/24 30/6/24 Details Date $m Cap rate % $m $m • Office 82% of the portfolio 141 St Georges Terrace, Perth Westralia Square 31/12/24 395.0 6.38 395.0 385.2 • Car parks and car yards 18% 143 St Georges Terrace, Perth (WS2) 31/12/24 105.0 6.38 105.0 99.1 • Core
Slide 24: Co-living JV continues to contribute high returns
CO-LIVING JV CONTINUES TO CONTRIBUTE HIGH RETURNS > Continues to deliver on objective of achieving 20% return on initial invested capital, with an FFO contribution of $3.5 million for the period (6 months to December 2024) Newman > Bedded down acquisition of Newman and immediately rebranded to The F
Slide 25: For personal use only
For personal use only
GDI Property Group — Bell Potter Emerging Leaders Conference 2025 on 6ix