Goodman Group · ASX:GMG
Goodman — Q3 FY2014 Earnings Presentation
32 slides from Goodman's earnings presentation, May 7, 2014
Slide 1: Goodman Group Quarterly Update
Goodman Group Goodman Group Quarterly Update For personal use only May 2014 Global partner + Global platform
Slide 2: Contents
Contents For personal use only + Section 1 Quarterly operational highlights + Section 2 Global development business + Section 3 North American platform + Section 4 Urban renewal + Appendices 2
Slide 3: Important notice and disclaimer
Important notice and disclaimer For personal use only + This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071), Goodman Funds Management Limited (ABN 48 067 796 641; AFSL Number 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839) and Good
Slide 4: Section 1: Quarterly operational highlights
For personal use only Section 1+ Quarterly operational highlights Munich Airport Logistics Centre, Germany
Slide 5: Quarterly operational highlights
Quarterly operational highlights For personal use only + Operational activities benefiting from a global operating platform + Globally, demand for and pricing of industrial real estate is increasing on the back of capital flows and limited supply – Barriers to entry: successful operators require cap
Slide 6: Quarterly operational highlights
Quarterly operational highlights For personal use only + Australian listed property operator and fund manager with globally diversified platform specialising in industrial and business space – 56% of AUM in Goodman’s key international markets – 77% of development work in progress in those key intern
Slide 7: Snapshot
Snapshot For personal use only A$26.4 billion A$22.0 billion A$2.7 billion A$4.4 billion total assets under management 13%¹ external assets under management 13%¹ Development work in progress 13%¹ direct property investment portfolio 12%¹ + 1,750 18 million 421 customers sqm of industrial and propert
Slide 8: Quarterly operational highlights
Quarterly operational highlights¹ For personal use only + Occupancy maintained at 96% across all markets + Retention at 73% and WALE of 4.9 years Own + 2.1 million sqm leased year to date – representing $248.9 million in annual rental income across the Group and managed funds + Positive reversions o
Slide 9: Quarterly operational highlights
Quarterly operational highlights For personal use only Sale Leasing Ashikaga, Ashikaga City, Japan Anagni, Italy Central West Distribution Centre, Laverton, VIC Amazon, Pforzheim, Germany Vatry, Framce Transaction Transaction Transaction Leasing Type Leasing Type Leasing Type Lettable area 23,952 sq
Slide 10: Section 2: Global development business
For personal use only Rheinberg Logistics Centre , Germany Section 2+ Global development business Bungarribee Industrial Estate, Australia
Slide 11: Global development business
Global development business For personal use only + Leveraging off structural changes in occupier market, in particular growth in e-commerce + Increasing contribution from North America with WIP exceeding US$200 million this calendar year + Named the largest European developer for the last three con
Slide 12: Global development business
Global development business For personal use only Sale Leasing Highbrook Business Park, Auckland, New Zealand Redbank Motorway Estate, Ipswich, QLD Goodman Chongqing Airport Logistics Park, China Estimated end Estimated end Estimated end $1.2 billion1 value $175 million¹ $140 million¹ value value Am
Slide 13: Global development business
Global development business For personal use only Sale Leasing Derby Commercial Park, Derby, United Kingdom Lille – Douai Logistics Centre, Lauwin – Planque France IBP, Rio de Janeiro, Brazil Estimated end Estimated end Value $100 million $230 million¹ $290 million¹ value value Land area 121,401 sqm
Slide 14: Section 3: North American platform
For personal use only Section 3+ Outlook Consolidated Cargo Complex, Hong Kong
Slide 15: North American platform
North American platform For personal use only + Goodman Group entered the North American market in June 2012 through the acquisition of Birtcher Development and the launch of Goodman North American Partnership (GNAP) + Goodman platform combines Goodman’s global expertise and Birtcher local knowledge
Slide 16: US industrial market snapshot
US industrial market snapshot For personal use only + Key industrial demand drivers (industrial production, retail sales, and consumer product inventories) have staged a strong recovery Summary + Supply remains constrained leading to continued positive net absorption + E-commerce is a “game changer”
Slide 17: Target markets + development pipeline
Target markets + development pipeline For personal use only + Development pipeline of US$1.4bn across 750 acres of land providing 15m sqft of product New Jersey Sqft 2.8m Oakland End Value US$350m Sqft 0.4m End Value US$45m Pennsylvania Sqft 4.7m End Value US$280m LA / Inland Empire Sqft 7.1m End Va
Slide 18: Market focus - Inland Empire
Market focus - Inland Empire For personal use only + Total industrial market size of 430m sqft - includes 128m sqft of Big Box (500k sqft+) warehousing Supply + Overall market vacancy of 4.2% with Big Box vacancy in Inland Empire West (IEW) at 1.6% + 33.9m sqft of space leased in 2013, up 10% on 201
Slide 19: Goodman logistics center Rancho Cucamonga
Goodman logistics center Rancho Cucamonga For personal use only Estimated end value US$150 million Site area 74.9 acres Building 1 555,000 sqft Building 2 1,034,000 sqft Total Lettable area 1,589,000 sqft Contracted owner GNAP Location Inland Empire West + Prime site strategically located in key Inl
Slide 20: Section 4: Urban renewal
For personal use only Section 2+ Urban renewal Westney Pinnacle Industry Park, Corporate Park,New Zealand Australia Banfield Distribution Centre, Australia Kobe, Japan
Slide 21: Urban renewal
Urban renewal For personal use only + Properties are acquired based on existing industrial use returns + Asset plans completed annually ensuring returns are maximised for individual properties + Higher and better use realised by redevelopment or a change of use + Goodman’s approach to urban renewal
Slide 22: Australian urban renewal pipeline
Australian urban renewal pipeline For personal use only Entity State Suburb Site Area Potential GFA Approx # of (ha) (sqm) apartments¹ Projects actively undergoing planning approval and consultation Fund NSW Epping 1.3 65,000 770 GMG NSW Homebush 27.0 540,000 4,025 GMG NSW Alexandria 2.1 52,500 622
Slide 23: Carter Street, Homebush
Carter Street, Homebush For personal use only Ownership GMG Site Area 27.0 ha Current zone B7 Business Park + R4 high density residential + B2 town centre (retail Proposed zone and commercial) + On exhibition 4,025 lots, FSR of 2:1 Relevant Authority Dept of Planning / Auburn Council Timing for appr
Slide 24: Fishermans Bend, Port Melbourne
Fishermans Bend, Port Melbourne For personal use only Ownership GMG + Funds Site Area 28.9 ha Lots 9,917 complying Current zone Capital City Zone Relevant Authority Dept of Planning / Melbourne City / Port Melb Timing for approval Est 2015 Planning Actions + Prepare and negotiate Business Case to de
Slide 25: Appendix 1: Leasing
For personal use only Appendix 1+ Leasing M20 Business Park, New Zealand 25
Slide 26: Leasing
Leasing For personal use only Across the Group and Funds platform: + Positive lease reversions of 5.2% on new leasing deals + Occupancy maintained at 96% with weighted average lease expiry of 4.9 years Region Leasing area (sqm) Net annual rent (A$M) Average lease term (years) Australia 845,854 106.9
Slide 27: Appendix 2: Development
For personal use only Appendix 2+ Development Kobe, Japan
Slide 28: Developments
Developments For personal use only Q3 FY14 Developments Completions Commitments Work in progress Value ($M) 1,232 1,537 2,659 Area (m sqm) 1.1 1.3 2.0 Yield (%) 8.6 8.3 8.4 Pre-committed (%) 93 61 65 Weighted Average Lease Term (years) 7.5 5.8 6.7 Development for Third Parties or Funds (%) 92 84 91
Slide 29: Appendix 3: Funds management
For personal use only Appendix 3+ Funds management Westney Pinnacle Industry Park, Corporate Park,New Zealand Australia Banfield Distribution Centre, Australia Kobe, Japan
Slide 30: Management platform
Management platform For personal use only Goodman’s Largest¹ managed vehicles GAIF GTA GELF GHKLF GMT2 ABPP EPF5 GCLH Total assets $5.7bn $3.3bn $3.2bn $2.8bn $1.9bn $1.5bn $1.1bn $1.0bn GMG co-investment 27.5% 19.9% 20.4% 20.0% 17.6%3 43.1% 38.0% 20.0% GMG co-investment $0.9bn $0.4bn $0.3bn $0.4bn
Slide 31: Global platform
For personal use only Global platform 31
Slide 32: Thank you
For personal use only thank+you 32