GARDA Property Group · ASX:GDF
GARDA Property — Garda Diversified Property Fund — FY2017 Earnings Presentation
38 slides from GARDA Property's earnings presentation, Aug 23, 2017
Slide 1: Full Year Results Presentation
For personal use only GARDA DIVERSIFIED PROPERTY FUND (ASX CODE: GDF) FULL YEAR RESULTS PRESENTATION 23 AUGUST 2017
Slide 2: GDF at a Glance
GDF AT A GLANCE $233 MILLION AUM For personal use only COMMERCIAL AND INDUSTRIAL PORTFOLIO ~$130 MILLION MARKET CAPITALISATION 5.6 YEARS 94% $1.21 FY2017 DISTRIBUTION WALE OCCUPANCY NTA PER UNIT $0.094 /UNIT ALIGNED 7.37% 31.7% MANAGER FY2017 PAYOUT RATIO WEIGHTED AVERAGE CAP RATE LVR GARDA CAPITAL
Slide 3: Results - Overview
RESULTS - OVERVIEW For personal use only 30 June 2017($) 30 June 2016 ($) Movement Statutory Net Profit 20,121,000 17,864,000 12.6% Adjustments: Fair value movement in investment properties (9,517,000) (10,093,000) Loss of sale of investment properties 154,000 0 Net (gain)/loss of interest rate swap
Slide 4: Results - Portfolio Valuations
RESULTS - PORTFOLIO VALUATIONS For personal use only Jun-16 Independent Jun-17 Independent Investment Property Jun-17 Cap Rate Change valuations ($m) valuations ($m) 7-19 Lake Street, Cairns, QLD 41.0 8.50% 45.0 9.8% Land at 26-30 Grafton Street, Cairns, QLD 1.2 N/A 3.0 150.0% 69-79 Diesel Drive, Ma
Slide 5: GDF – Recent Performance
GDF – RECENT PERFORMANCE Net Tangible Assets ($ per unit) For personal use only WALE (years) $1.30 6 5.6 $1.21 5.5 $1.20 $1.13 5 $1.10 4.5 4.1 $1.02 $1.00 4 3.5 3.5 $0.90 3 $0.80 2.5 2015 2016 2017 2015 2016 2017 Occupancy (%) Cap Rate (%) 8.90% 100% 94% 93% 94% 9.00% 8.50% 8.13% 90% 8.00% 80% 7.37%
Slide 6: Operational Highlights
OPERATIONAL HIGHLIGHTS ASX PERFORMANCE For personal use only 22% outperformance of the S&P/ASX A-REIT 200 index since July 2016. PORTFOLIO REVALUATIONS $19.0 million increase in the portfolio valuations during the financial year contributing to a $0.10 increase to NTA per unit. CAPITAL TRANSACTIONS
Slide 7: GDF vs S&P/ASX A-REIT Index
GDF vs S&P/ASX A-REIT 200 INDEX • 7.13% outperformance against the S&P/ASX A-REIT 200 index since IPO on 2 July 2015. • 22.38% outperformance against the S&P/ASX A-REIT 200 index from 1 July 2016. For personal use only GDF.ASX S&P/ASX A-REIT 200 XPJ.ASX 115% 110% 105% 100% 95% 90% 85% 80% 01 Jul 16
Slide 8: GDF vs AREIT Peers
GDF vs AREIT PEERS For personal use only FY2017 DPU YIELD (%) WALE (Yrs) 6.4% 6.6% 6.6% 7.3% 8.0% 8.2% 3.9 4.4 4.6 5.6 6.1 7.8 7.2% 5.4 years CMA CIP AOF GDF GOZ IDF IDR AOF GOZ CMA GDF CIP PREMIUM (DISCOUNT) TO NTA GEARING (%) 27% 30% 32% 35% 39% 43% -3% -3% 3% 3% 6% 11% 34% 3% AOF CMA GDF IDR GOZ
Slide 9: FY2017 Operations
For personal use only FY2017 OPERATIONS
Slide 10: Capital Transactions - Activity and Outlook
CAPITAL TRANSACTIONS - ACTIVITY AND OUTLOOK For personal use only • GDF has executed a specific capital transaction strategy during financial year that has: • Diversified the portfolio, now weighted 40% industrial (by value); and • Recycled capital from Brisbane office to Brisbane industrial. • GDF
Slide 11: Capital Transaction - Divestment
CAPITAL TRANSACTION - DIVESTMENT JUNE 2016 - SOLD FOR $23.0 MILLION. For personal use only • This property was located within the commercial precinct of the Brisbane Airport Corporation (BAC). • The BAC has substantial land available for development and during 2016 leased new buildings at significan
Slide 12: Capital Transactions - Acquisitions
CAPITAL TRANSACTIONS - ACQUISITIONS For personal use only 69-79 Diesel Drive, Paget, QLD (Mackay) Lot 2001 Metroplex Westgate, Wacol, QLD 70-82 Main Beach Road, Pinkenba, QLD (Brisbane) (Brisbane) • August 2016 - acquired for $29.5 million on a capitalisation rate of 7.75%. • June 2017 - acquired fo
Slide 13: Acquisitions – Pinkenba and Wacol
ACQUISITIONS – PINKENBA AND WACOL • Pinkenba and Wacol have been acquired on a ‘fund through basis’. For personal use only • All capital deployed by the Fund will earn interest returns reflective of the initial yield. • Both assets have long term pre-committed leases in place: • Pinkenba: 15 years t
Slide 14: Capital Management – Debt
CAPITAL MANAGEMENT – DEBT KEY DEBT METRICS • The Fund recently extended two debt tranches totalling $63.3 For personal use only FACILITY LIMIT $83,599,500 million for a further two years, now expiring in June 2020. DRAWN AMOUNT $63,350,000 • Weighted average term to maturity is 2.76 years. UNDRAWN C
Slide 15: Capital Improvements Program
CAPITAL IMPROVEMENTS PROGRAM • The capital improvements program accelerated during this financial year with approximately $6.3 million invested including: • $3.6 million at Lake Street, Cairns For personal use only • $0.9 million at Elgar Road, Box Hill • $1.6 million at Swan Street, Richmond • The
Slide 16: Leasing Outcomes
LEASING OUTCOMES • GDF continues to address material year on year lease expiry with positive renewal outcomes for the Fund. For personal use only • Approximately 9,200m2 has been leased across five transactions representing 15% of the portfolio gross income. • As a result, the two Melbourne assets a
Slide 17: At Risk Income
AT RISK INCOME 11% of Fund income is due to expire in FY2018 with two impending material expiries: 572 Swan Street, Richmond (VIC) 747 Lytton Road, Murarrie (QLD) For personal use only • 1,595m² handed back as part of Golder Associates 7 year • 1,988m2 Spotless tenancy. extension. • Expiry: April 20
Slide 18: Guidance and Outlook
For personal use only GUIDANCE AND OUTLOOK
Slide 19: FY2018 Objectives
FY2018 OBJECTIVES For personal use only FY2018 OBJECTIVES • The Fund’s key objectives for FY2018 include: • Address the remaining lease expiries due in FY2018 and also the FY2019 expiries; • Reducing vacancy in the portfolio and associated lost income with a specific focus on Cairns; • Deliver the t
Slide 20: FY2018 Distribution Guidance
FY2018 DISTRIBUTION GUIDANCE For personal use only DISTRIBUTIONS • FY2018 distribution guidance of $0.09 per unit reflects the sale of the higher yielding Eagle Farm office asset compared to the recent capital transactions which have increased portfolio WALE. • Payout ratio of approximately 95%. • A
Slide 21: FY2018 Outlook
FY2018 OUTLOOK For personal use only OUTLOOK • GDF will continue to seek opportunities to grow AUM in lower incentivised markets. • GDF is specifically seeking: • Industrial assets in Brisbane and Sydney; • Commercial office assets in Melbourne, Canberra and Sydney; and • Individual asset values of
Slide 22: GDF Portfolio
For personal use only GDF PORTFOLIO
Slide 23: Property Portfolio
PROPERTY PORTFOLIO For personal use only INDEPENDENT CAP PORTFOLIO PROPERTY PORTFOLIO TYPE NLA (m2) WALE OCCUPANCY NABERS VALUATION¹ ($m) RATE VALUE 572-576 Swan Street, Richmond Office 41.0 6.50% 6,587 5.4 100% 5.0 18% 436 Elgar Road, Box Hill Office 25.0 7.75% 5,725 3.7 100% 2.5 11% 7-19 Lake Stre
Slide 24: Diversified Portfolio
DIVERSIFIED PORTFOLIO PORTFOLIO VALUE (by location) For personal use only Gold Coast 6% Mackay 13% CAIRNS Melbourne 29% 7-19 Lake Street, Cairns ($48.0m) MACKAY 69-79 Diesel Drive, Mackay ($29.5m) Cairns 20% BRISBANE GOLD COAST 747 Lytton Road, Murarrie ($14.1m) 142 Benjamin Place, Lytton ($8.8m) Br
Slide 25: WALE and Occupancy
WALE AND OCCUPANCY For personal use only WALE by income (Years) 15.0 11.5 10.0 5.6 5.4 2.3 3.7 1.6 1.6 2.4 CAIRNS MURARRIE VARSITY LAKES LYTTON BOX HILL RICHMOND MACKAY PINKENBA WACOL PORTFOLIO TOTAL OCCUPANCY by income 95% 100% 100% 100% 100% 100% 100% 94% 90% 81% CAIRNS MURARRIE VARSITY LAKES LYTT
Slide 26: Portfolio Tenants
PORTFOLIO TENANTS Top 10 tenants (Gross Income) For personal use only Company Sector/Industry Rent ($m) Percentage Expiry Location of Portfolio Golder Associates Engineering & construction $2.66 13% Jan-25 Richmond, Melbourne J Blackwoods & Sons Industral safety $2.45 12% Jan-29 Mackay QLD Governmen
Slide 27: Appendix – Financial Information
For personal use only APPENDIX 1 FINANCIAL INFORMATION
Slide 28: Income Statement
INCOME STATEMENT • Net profit attributable to unitholders of $20.1 million, a 12.6% increase 30 June 2017 30 June 2016 For personal use only Income Statement $000’s $000’s on the prior financial year. Property revenue 19,935 17,106 • The net profit increase is primarily as a result of an increase in
Slide 29: Funds from Operations (FFO)
FUNDS FROM OPERATIONS (FFO) • FFO increased to $10.7 million, representing an 18.2% increase on the 30 June 2017 30 June 2016 For personal use only Funds from operations $000’s $000’s prior period FFO of $9.1 million. Net profit/(loss) 20,121 17,864 • The increase in FFO is mainly as a result of add
Slide 30: Balance Sheet
BALANCE SHEET • Cash temporarily increased to $11.4 million as a result of the sale 30 June 2017 30 June 2016 For personal use only Balance Sheet $000’s $000’s of 12-14 The Circuit, Eagle Farm in early June 2017. Proceeds have partially repaid debt and funded further acquisitions. Assets Cash and ca
Slide 31: GDF Assets Appendix
For personal use only GDF ASSETS APPENDIX 2
Slide 32: Portfolio Summary – Property
PORTFOLIO SUMMARY – PROPERTY For personal use only METROPLEX WESTGATE, WACOL, QLD Cap 6.25% Valuation $35,250,000 Ownership interest 100% NLA 9,994m² Car spaces N/A Occupancy 100% WALE 10.0 years Tenants 1 NABERS Exempt 70-82 MAIN BEACH ROAD PINKENBA, QLD Cap Rate 7.4% Valuation $19,000,000 Ownershi
Slide 33: Portfolio Summary – Property
PORTFOLIO SUMMARY – PROPERTY For personal use only 69-79 DIESEL DRIVE, MACKAY, QLD Cap 7.75% Valuation $29,500,000 Ownership interest 100% NLA 13,843m² Car spaces N/A Occupancy 100% WALE 11.5 years Tenants 1 NABERS Exempt 142 BENJAMIN PLACE, LYTTON, QLD Cap Rate 7.75% Valuation $8,800,000 Ownership
Slide 34: Portfolio Summary – Property
PORTFOLIO SUMMARY – PROPERTY For personal use only 572 - 576 SWAN STREET, RICHMOND, VIC Cap Rate 6.50% Valuation $41,000,000 Ownership interest 100% NLA 6,587m² Car spaces 178 Occupancy 100% WALE 5.4 years Tenants 2 NABERS 5 star 436 ELGAR ROAD, BOX HILL, VIC Cap Rate 7.75% Valuation $25,000,000 Own
Slide 35: Portfolio Summary – Property
PORTFOLIO SUMMARY – PROPERTY For personal use only 747 LYTTON ROAD, MURARRIE, QLD Cap 8.12% Valuation $14,100,000 Ownership interest 100% NLA 3,617m² Car spaces 169 Occupancy 95% WALE 1.6 years Tenants 5 NABERS 5.0 star 154 VARSITY PDE, GOLD COAST, QLD Cap Rate 8.25% Valuation $12,800,000 Ownership
Slide 36: Portfolio Summary – Property
PORTFOLIO SUMMARY – PROPERTY 7-19 LAKE STREET, CAIRNS, QLD For personal use only Cap 8.50% Valuation $48,000,000 (inc. land at Grafton St) Ownership interest 100% NLA 14,757m² Car spaces 254 Occupancy 81% WALE 2.3 years Tenants 27 NABERS 4.0 star 36 | GARDA DIVERSIFIED PROPERTY FUND FULL YEAR RESULT
Slide 37: Disclaimer
DISCLAIMER This presentation (Presentation) has been prepared on behalf of GARDA Capital Limited (ACN 095 039 366) (AFSL 246714) (GARDA) as responsible entity of the GARDA Diversified Property Fund ARSN 104 391 273 (GDF or the Fund). The information and statements in this Presentation were prepared
Slide 38: Financial Results
For personal use only 01 FINANCIAL RESULTS GARDA DIVERSIFIED PROPERTY FUND FULL YEAR RESULTS PRESENTATION | 23 AUGUST 2017
Garda Diversified Property Fund — FY2017 Earnings Presentation on 6ix