Goodman Group · ASX:GMG
Goodman — Investor Presentation (June 2016)
31 slides from Goodman's investor presentation, Jun 16, 2016
Slide 1: Goodman Update: Operational and Strategy Update
InvestorGroup Goodman Update Operational and Strategy Update 11 June 2015 16 June 2016
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), 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 Goodman Logistics (HK) Lim
Slide 3: Contents
Contents + Section 1 Group overview + Section 2 Regional updates + Section 3 Funds management + Section 4 Customer service model + Section 5 Airgate Business Park
Slide 4: Section 1: Group overview
Section 1+ Group overview Nick Vrondas, Group CFO
Slide 5: Group overview
Group overview + “Lower for Longer” - Low inflation and low growth environment across the majority of global platform + Significant liquidity in capital markets driven by government stimulus packages and low interest rate Consistent themes environment, albeit increasing credit margins and messaging
Slide 6: Group overview
Group overview + Urban renewal sales ahead of original targets and cash realisation has accelerated A$2.1bn of urban + Anticipated to transact further sites in the short term renewal transacted + Potential pipeline of 35,000 units across the Australian portfolio maintained + Key focus on planning an
Slide 7: Section 2: Regional updates
Section 2+ Regional updates Centenary Distribution Centre, Australia
Slide 8: Australia – Jason Little, General Manager
Australia – Jason Little, General Manager Economic backdrop Snapshot¹ + Forecast GDP growth of 2.6% p.a. on average between 2017-2020 + Low interest rate and inflation environment expected to Assets under management A$13.9bn continue in the medium term + Key driver of industrial demand is consumptio
Slide 9: Australia – Jason Little, General Manager
Australia – Jason Little, General Manager Development Leasing Urban renewal Port Botany Industrial Estate, Banksmeadow Southgate Industrial Estate, Banksmeadow Carter Street Precinct, Homebush Customer Toll and Jewel Fine Foods Customer Linfox Current zoning IN2 Industrial Lettable area 44,479 sqm R
Slide 10: New Zealand - John Dakin, CEO
New Zealand - John Dakin, CEO Economic backdrop + The domestic economy is adjusting to the continued decline in export Snapshot¹ dairy prices, which has been partly offset by a fall in the exchange rate + Other export sectors remain strong and tourism is booming, with Assets under management A$2.4bn
Slide 11: New Zealand - John Dakin, CEO
New Zealand - John Dakin, CEO Value Add Development Leasing Tamaki Estate, Panmure, Auckland Highbrook Business Park, Auckland Viaduct Precinct, Auckland Asset type Auckland Industrial Asset type Auckland Industrial Asset type VXV20 - Auckland Office Lettable area 20,400 sqm Lettable area 10,415 sqm
Slide 12: Japan - Paul McGarry, CEO
Japan - Paul McGarry, CEO Economic backdrop Snapshot¹ + Forecast GDP growth of 0.4% p.a. from 2016-2020 + Negative interest environment is expected to continue for the near-to medium term Assets under management A$1.7bn + Key drivers for industrial demand will continue to be Stabilised properties 18
Slide 13: Japan - Paul McGarry, CEO
Japan - Paul McGarry, CEO Stabilised Development Development Goodman Business Park, Stage 1, Chiba Goodman Business Park, Stage 2, Chiba Goodman Akamatsudai, Kobe Asset type Multi-tenant industrial Asset type Multi-tenant industrial Asset type Built to suit Lettable area 116,000 sqm Lettable area 12
Slide 14: Greater China - Phil Pearce, Managing Director
Greater China - Phil Pearce, Managing Director Hong Kong economic backdrop China economic backdrop + Hong Kong GDP is forecast to grow between 1-2% + The Chinese government has set the target p.a. in 2016, down from 2.4% p.a. in 2015 GDP growth rate in 2016 to a range of 6.5- + Declining tourist arr
Slide 15: Greater China - Phil Pearce, Managing Director
Greater China - Phil Pearce, Managing Director Development Development Divestment YTO Best YTO Huiyang Industrial Park P1 and 2, Guangdong Chongqing Airport Logistics Park P5, Chongqing Portfolio in Tianjin and Nanjing Customer JD.com Customer YTO Express and Best Logistics Wuqing E-Commerce Park, T
Slide 16: Europe - Philippe Van der Beken, Managing Director
Europe - Philippe Van der Beken, Managing Director Economic backdrop Snapshot¹ + Eurozone forecast annual GDP growth of 1.6% p.a. for 2016 and 1.8% p.a. for 2017 + Low interest rate and inflation environment 7% Assets under management A$5.2bn expected to continue in the medium term 51% 13% Stabilise
Slide 17: Europe - Philippe Van der Beken, Managing Director
Europe - Philippe Van der Beken, Managing Director Development Development Leasing Signed France, Brie and Le Mans - Carrefour Germany, Hamburg – Interlink Amazon - Leipzig, Saran and Montélimar Asset type FY16: 2 warehouses (dry and chilled storage) Lettable area 38,489 sqm Asset type 3 logistics w
Slide 18: United Kingdom
Jim Johnston, MD Business Parks United Kingdom - Charles Crossland, MD Logistics Economic backdrop Snapshot¹ + Brexit vote 23 June + 2016 Forecast GDP of 2% South East + Inflation of 0.3% Assets under management A$1.9bn Midlands + Unemployment of 5.1% + Consumer expenditure largest driver of GDP gro
Slide 19: United Kingdom
Jim Johnston, MD Business Parks United Kingdom - Charles Crossland, MD Logistics Leasing Development Development Northampton Commercial Park, Northampton Centrum Logistics Park, Burton on Trent Eastside Locks, Birmingham Customer Clipper Logistics Ltd Customer Palletforce Asset type Mixed use develo
Slide 20: North America - Brandon Birtcher, CEO
North America - Brandon Birtcher, CEO Economic backdrop + Key industrial demand drivers of industrial production, trade, retail sales, and consumer product inventories have staged a strong recovery + US economy continues steady growth with 2.4% p.a. recorded in 2015 + Consumption represents nearly 7
Slide 21: North America - Brandon Birtcher, CEO
North America - Brandon Birtcher, CEO Leasing Value add Redevelopment Goodman Commerce Center Eastvale Goodman Logistics Center SFS II Goodman Logistics Center El Monte Location Eastvale, CA – Inland Empire West Location Santa Fe Springs, CA – Los Angeles Lettable area El Monte, CA – Los Angeles Cus
Slide 22: Brazil – Cesar Nasser, CEO
Brazil – Cesar Nasser, CEO Economic backdrop Snapshot¹ + GDP forecast growth of 1.9% p.a. on average + Interest rates (Selic Index) are expected to decrease from 13.7% p.a. in 2017 to 9.4% p.a. Assets under management A$0.2bn + Inflation rates (IPCA Index) should stabilise at 4.5% p.a. after reachin
Slide 23: Brazil - Cesar Nasser, CEO
Brazil - Cesar Nasser, CEO Development Leasing Stabilised Goodman Betim – Minas Gerais Goodman Caxias – Rio de Janeiro Goodman Campo Grande – Rio de Janeiro Customer Large US retailer Customer Brazilian Post Office / Rio Olympic Committee Customer Via Varejo Lettable area 62,597 sqm Lettable area 63
Slide 24: Section 3: Funds management
Section 3+ Funds management Nick Kurtis, Group Head of Equities Centenary Distribution Centre, Australia
Slide 25: Key trends
Key trends + Asset and investment strategy – Focus on increasing exposure to ‘gateway cities’ – Reduce exposure to low barrier entry markets – Core assets currently expensive in most markets – Development and asset repositioning remains the main method to undertake investment – Monetise existing lan
Slide 26: Section 4: Customer service model
Section 4+ Customer service model Richard Harry General Manager, Business Development
Slide 27: Customer service model
Customer service model + Key Question: What are we learning from our customers that we then apply to our own operational strategy? + Two geared customer service model: - Underpins the importance of executing at operational level in the short term - Mid to long term strategic direction + Allows activ
Slide 28: Customer Service Model
Customer Service Model Graben Logistics Centre - Germany Xindu North Industrial Park – Chengdu, China Interlink – Hong Kong Customer Amazon Customer Walmart Customer DHL - Deutsche Post Lettable area 712,014 sqm Lettable area 936,764 sqm Lettable area 26,810 sqm Geographical Geographical Geographica
Slide 29: Section 5: Airgate Business Park
Section 4+ Customer service model Richard Harry General Manager, Business Development
Slide 30: Airgate Business Park
Airgate Business Park Location 283 Coward St, Mascot + Airgate Business Park is located approximately 8 kilometres south of the Sydney CBD in Mascot. Southern Cross Drive is approximately 2 GLA 40,983 sqm kilometres away and provides direct access to the Eastern Distributor Site area 7.7 ha and the
Slide 31: Thank you
thank+you