Gpt Group · ASX:GPT
Gpt — Investor Day (June 2012)
65 slides from Gpt's investor day presentation, Jun 27, 2012
Slide 1: GPT Investor Day
For personal use only GPT Investor Day WEDNESDAY 27 JUNE 2012 1
Slide 2: Welcome and Introduction
For personal use only Welcome and Introduction Michael Cameron, CEO and Managing Director
Slide 3: Recent highlights
Introduction GPT Investor Day Recent highlights For personal use only One One One Eagle Street reached practical completion and 82% commitments Sold 2/3 interest in Newcastle land holding Sold 50% interest in Casuarina and Westfield Woden to GWSCF Signed AFL with Myer at Casuarina 3
Slide 4: GPT's competitive advantage
Introduction GPT Investor Day GPT’s competitive advantage For personal use only High quality, diversified asset portfolio Active property management Deep capability Strong capital management 4
Slide 5: Agenda and Speakers
Introduction GPT Investor Day Agenda For personal use only Speakers Mark Fookes Head of Investment Management Matthew Faddy Head of Asset Management Brett Williams Retail Portfolio Manager Max Ryerson Digital Marketing Manager David Burgess Portfolio Manager - Office, Logistics and Business Parks Lu
Slide 6: Investment Management
For personal use only Investment Management Mark Fookes, Head of Investment Management
Slide 7: Focused on portfolio investment performance
Investment Management Investment Management Focused on portfolio investment performance For personal use only Integrated portfolio management structure aligned to the goal of strategic allocation of capital Centralised approach to investment management results in synergies and efficiencies acros
Slide 8: Strategic approach to capital allocation
Investment Management Investment Management Strategic approach to capital allocation For personal use only Capital allocation framework used to actively manage the portfolio composition A strategic ‘whole of portfolio’ approach looking across all investment opportunities and uses of capital >9%
Slide 9: Diversified portfolio positioned to deliver superior risk adjusted returns
Investment Management Investment Management Diversified portfolio positioned to deliver superior risk For personal use only adjusted returns GPT has a high quality portfolio of assets in 20 Year Sector Correlations1 the retail, office and logistics and business 82% parks sectors 59% 50% Historic
Slide 10: Moving towards a more balanced portfolio
Investment Management Investment Management Moving towards a more balanced portfolio For personal use only Portfolio weighting Target portfolio weighting As at 31 December 2011 Logistics and Logistics and Business Parks 9% Business Parks 15% Office Retail 30% 50% Retail Office 61% 35% Retail weigh
Slide 11: Actively managing the portfolio composition
Investment Management Investment Management Actively managing the portfolio composition For personal use only Acquisition and divestment decisions will be based on the individual circumstances and prospects for each asset Divestment of 50% of Casuarina Square and Westfield Woden to GWSCF Decis
Slide 12: Asset Management
For personal use only Asset Management Matthew Faddy, Head of Asset Management
Slide 13: Seamless control and management
Asset Management Asset Management Seamless control and management For personal use only Team of dedicated retail, office, logistics and business parks professionals Focus on active portfolio GPT’s integrated property and asset management, customer service, management approach leasing, operations
Slide 14: Sector focus with national synergies
Asset Management Asset Management Sector focus with national synergies For personal use only Investment Asset Development Management Management Management National Director National Director Office, Leasing - Office, National Director National Director National Director National Director Logistics a
Slide 15: Shopper experience – providing 'something special'
Asset Management Asset Management Shopper experience – providing ‘something special’ For personal use only • Wi Fi • Customer • Mobile Touch Point Program • QR Code GPT PLACE DIGITAL campaigns SERVICE Customised • SAKG • Facebook Training • Place Making Program • Twitter • Instagram Charlestown Squa
Slide 16: Tenant engagement – 'understanding our customer'
Asset Management Asset Management Tenant engagement – ‘understanding our customer’ For personal use only Defined customer engagement plan “Customer service is the main differentiator when Account management of top customers seeking office-space for our Focus on understanding their business and
Slide 17: Generating enhanced returns via internalised management
Asset Management Asset Management Generating enhanced returns via internalised management For personal use only Reduced leakage of management Enhanced returns from integrated and leasing fees to external parties property and asset management - $1m annual office and logistics and business parks C
Slide 18: Benefits from internalised property management
Asset Management Asset Management Benefits from internalised property management For personal use only People Alignment of performance management Talent attraction, retention and ongoing learning and development Enhanced Removal of the middle man customer Creating a direct working relationsh
Slide 19: Retail Investment
For personal use only Retail Investment Brett Williams, Retail Portfolio Manager
Slide 20: Australian Retail Sector
Retail Australian Retail Sector Whilst the retail sector is challenging now, GPT continues to For personal use only believe in the future of retail as a strong investment class The retail sector has historically outperformed other property asset classes, achieving higher returns with lower volatil
Slide 21: Australian Retail – Shopping Centre Evolution
For personal use only Australian Retail – Shopping Centre Evolution Retail 21 21
Slide 22: Retail sales growth – GPT is actively addressing structural impacts
Retail Australian Retail Sector Retail sales growth – GPT is actively addressing For personal use only structural impacts Structural Potential Impact GPT’s Response Change Online • Online retailing will continue to grow • GPT will evolve the mix of stores, invest Retailing • Successful retailers wil
Slide 23: Retail Portfolio
Retail Retail Portfolio GPT believes quality regional shopping centres which For personal use only dominate their trade area will continue to outperform other retail asset classes 95% of the portfolio comprises regional shopping centres, one of the highest proportions out of its peer group Retail
Slide 24: Retail portfolio income growth
Retail Retail Portfolio Despite the cyclical and structural retail headwinds, For personal use only GPT’s retail portfolio is well positioned to continue to deliver solid income growth GPT’s retail portfolio has performed strongly, with high levels of occupancy and strong income growth 86% of th
Slide 25: GPT will reduce its weighting in retail towards 50% over time
Retail Retail Portfolio GPT will reduce its weighting in retail towards 50% For personal use only over time The divestment of a 50% interest in Westfield Woden and 50% of Casuarina Square reduces GPT’s retail weighting to 58% (55% post reinvestment) Retail Strategy Target Portfolio Weighting 50% (
Slide 26: Case Study: Digital Strategy
For personal use only Case Study: Digital Strategy Max Ryerson, Digital Marketing Manager
Slide 27: Adapting to changing market environments
Asset Management Digital Strategy Adapting to changing market environments For personal use only Shoppers’ habits are changing Smartphone Penetration 67% By 2015 internet 52% of population visit sites for info on product they are thinking of buying access on smartphone will exceed access on deskto
Slide 28: GPT's multi-channel approach
Asset Management Digital Strategy GPT’s multi-channel approach For personal use only Mobile applications Website personalisation Rewards Way finding Wifi QR codes Digital signage Email Geo-fencing Social Media 28
Slide 29: Key differentiators of GPT's multi-channel approach
Asset Management Digital Strategy Key differentiators of GPT’s multi-channel approach For personal use only Door-to-door journey - Home/office – centre – home/office Customisation - Content based on persona Rewards - Relevant to the customer 29
Slide 30: An ongoing evolution
Asset Management Digital Strategy An ongoing evolution For personal use only Office Wifi Remaining & Mobile websites Largest 5 Retail Logistics and Social media Retail Centres portfolio Business Parks QR Codes 2011/2012 2012 2013 2013/2014 30 EVOLUTION
Slide 31: Digital strategy supporting physical centres
Asset Management Digital Strategy Digital strategy supporting physical centres For personal use only Provide an all-present and multi-channel approach to engaging with customers and their needs Personalised contextually relevant information Rewarding loyalty and advocacy to our assets New re
Slide 32: Office Investment
For personal use only Office Investment David Burgess, Portfolio Manager - Office, Logistics and Business Parks
Slide 33: GPT – a leader in office
Office Office Portfolio GPT – a leader in office For personal use only Prime Office Assets - GPT vs. Listed Peers GPT is one of the leading owners, (portfolio size) $5.4b developers and managers of office $4.0b property in Australia $3.1b $3.0b $1.8b Substantial scale in the office markets with
Slide 34: Leveraging extensive asset management, leasing and development expertise
Office Office Portfolio Leveraging the Group’s extensive asset management, For personal use only leasing and development expertise Dedicated account managers for individual tenants across the portfolio ensures a consistent approach to client engagement Common asset management of balance sheet an
Slide 35: Strategy to increase office portfolio weighting
Office Office Portfolio Strategy to increase office portfolio weighting For personal use only GPT is targeting expansion in the office portfolio to 35% from the current 30% Opportunity to partner with GWOF to access a broader array of opportunities and diversify risk Office Strategy Target Portf
Slide 36: Leader in sustainability
Office Office Portfolio Leader in sustainability For personal use only Office Portfolio NABERS Rating 4.8 5.0 4.4 4.6 GPT was an early adopter of 4.0 3.7 incorporating world leading 3.2 3.3 2.7 2.8 sustainable technologies into office buildings Investment in sustainable assets helps future-proof
Slide 37: Actively managing the risks
Office Office Portfolio Actively managing the risks For personal use only Responding to portfolio challenges: 2014 lease expiries include: - Freehills (MLC Centre) - 20,000sqm Strategies are being pursued to mitigate these - Citigroup (Citigroup Centre) - 34,000sqm risks and create opportunities f
Slide 38: Proactively managing capital expenditure
Office Office Portfolio Proactively managing capital expenditure For personal use only Office represents the largest component of capex across the three portfolios Both historical and forecast levels of maintenance capex for the balance sheet portfolio are within industry averages for institutio
Slide 39: Disciplined approach to development
Office Office Portfolio Disciplined approach to development For personal use only One One One Eagle Street, Brisbane: Practical completion achieved in June 82% of space committed well ahead of 40% target at PC Strategy and Outlook for Office Portfolio Development: Will not undertake speculativ
Slide 40: MLC Centre update
Office Office Portfolio MLC Centre update For personal use only Decision to hold the asset Commence repositioning strategy Focused on leasing of impending vacating space and delivering the facade works Further opportunities to enhance retail MLC Centre, Sydney 40
Slide 41: Case Study: One One One Eagle Street, Brisbane
For personal use only Case Study: One One One Eagle Street, Brisbane Luke Briscoe, National Director Leasing – Office, Logistics and Business Parks
Slide 42: Case study: One One One Eagle Street, Brisbane
Office Case study: One One One Eagle Street, Brisbane For personal use only Sky rise Approach to Leasing Ernst & Young 9,000 sqm A changing market High rise The onset of the GFC Arrow Energy 14,800 sqm Reposition the marketing Mid rise Norton Rose Value vs quality 5,100 sqm Various Four
Slide 43: Logistics and Business Parks Investment
For personal use only Logistics and Business Parks Investment David Burgess, Portfolio Manager - Office, Logistics and Business Parks
Slide 44: Consistent and dependable performance
Logistics and Business Parks Logistics and Business Parks Portfolio Consistent and dependable performance For personal use only Historical Industrial Market Total Industrial property is a mature Return and stable investment class: 11.1% 10.9% 10.3% 9.8% - High quality income streams - Attractive t
Slide 45: Strategy to increase logistics and business parks portfolio weighting
Logistics and Business Parks Logistics and Business Parks Portfolio Strategy to increase logistics and business parks For personal use only portfolio weighting GPT is targeting expansion in the logistics and business parks portfolio to 15% from 9% Long term outlook for industrial is positive wit
Slide 46: Implementation of strategy
Logistics andIndustrial Business Parks Logistics and Business Parks Portfolio Implementation of strategy For personal use only Strategy to be executed via acquisitions and development delivery Defined acquisition criteria relating to quality of improvements and sub market location Development
Slide 47: Team in place to deliver on growth strategy
Logistics andIndustrial Business Parks Logistics and Business Parks Portfolio Team in place to deliver on growth strategy For personal use only Fully internalised property management allows GPT to develop and maintain closer tenant relationships Demonstrated leasing capability with sustained hig
Slide 48: Positive market fundamentals
Logistics andIndustrial Business Parks Logistics and Business Parks Portfolio Positive market fundamentals For personal use only Post GFC supply in the industrial markets has remained below historical averages, with 2010 being National Industrial Supply a low point in the delivery of new Sqm ('000
Slide 49: Recent achievements
Logistics andIndustrial Business Parks Logistics and Business Parks Portfolio Recent achievements For personal use only Execution of the growth strategy is progressing; - First stage of property management internalisation - Completion of 5 Murray Rose Avenue 5 Murray Rose Avenue, Sydney Olympic Pa
Slide 50: Funds Management
For personal use only Funds Management Hamish Roth, Head of Private Capital
Slide 51: Established funds management platform
Funds Management Funds Management Established funds management platform For personal use only Long term partnership approach with our investors Funds Management platform is a key component of GPT’s strategy Diversifies capital sources Builds capital relationships beyond fund investments En
Slide 52: Investor Composition
Funds Management Funds Management Investor Composition For personal use only The Funds Management business enjoys established relationships with Australian and international wholesale investors Ownership composition As at 31 March 2012 GPT Domestic GPT Domestic 20% Super 23% Super 32% 47% Sovereig
Slide 53: Well positioned for growth
Funds Management Funds Management Well positioned for growth For personal use only Two paths: - Short term: Primary focus on expanding the existing wholesale funds - Longer term: Investigating the potential for new products in GPT’s areas of expertise; Australian retail, office and logistics and b
Slide 54: GPT Wholesale Shopping Centre Fund
For personal use only GPT Wholesale Shopping Centre Fund Hamish Roth, Head of Private Capital
Slide 55: Growth in funds through acquisitions
GPT Wholesale Shopping Centre Fund GPT Wholesale Shopping Centre Fund Growth in funds through acquisitions For personal use only Fund overview As at 31 March Post Acquisition of Casuarina and Woden Number of assets 9 11 Gross asset value $2.2 billion $2.8 billion Net asset value $1.9 billion $2.0 bi
Slide 56: Fund performance at 31 March 2012
GPT Wholesale Shopping Centre Fund GPT Wholesale Shopping Centre Fund Fund performance at 31 March 2012 For personal use only Stable distributions since fund inception Strong income at 5.45cpu, distribution yield of 6.0%1 1 year total return post fees of 8.9% 3 year total return post fees of
Slide 57: New acquisitions meet fund strategy
GPT Wholesale Shopping Centre Fund GPT Wholesale Shopping Centre Fund New acquisitions meet fund strategy For personal use only GWSCF Real Estate Strategy Regional Shopping Centres or the ability to be expanded to Prime assets Regional over the medium term Defined positioning Have a well defined pos
Slide 58: Fund outlook
GPT Wholesale Shopping Centre Fund GPT Wholesale Shopping Centre Fund Fund outlook For personal use only Positive returns outlook in a volatile world - 6.47% weighted average capitalisation rate - 6.00% distribution yield Driving performance through proactive leasing and marketing Development
Slide 59: GPT Wholesale Office Fund
For personal use only GPT Wholesale Office Fund Martin Ritchie, Fund Manager
Slide 60: Highest quality office portfolio in Australia
GPT Wholesale Office Fund GPT Wholesale Office Fund Highest quality office portfolio in Australia For personal use only Portfolio by Geography Canberra Fund overview as at 31 March 2012 2% Number of Assets 14 Brisbane 24% Gross Asset Value $3.5 billion Sydney Net Asset Value $2.9 billion 49% Gearing
Slide 61: Fund Performance at March 2012
GPT Wholesale Office Fund GPT Wholesale Office Fund Fund Performance at March 2012 For personal use only Strong income at 6.90cpu, distribution yield of 7.0%1 1 year total return post fees of 11.0% 3 year total return post fees of 5.1% vs. office sector index of 2.0% Gearing of 13.6% vs. off
Slide 62: Real Estate Strategy
GPT Wholesale Office Fund GPT Wholesale Office Fund Real Estate Strategy For personal use only GWOF Real Estate Strategy Rent setter • Seek to be a rent setter, not a rent taker in selected locations • Seek Premium-grade and high A-grade with high environmental Enhance asset ratings quality • Divest
Slide 63: Fund outlook
GPT Wholesale Office Fund GPT Wholesale Office Fund Fund outlook For personal use only Positive returns outlook in a volatile world - 7.23% weighted average capitalisation rate - 7.00% distribution yield Highest quality portfolio 62% premium grade - Divest Brisbane Transit Centre and 10 & 12 Mor
Slide 64: Conclusion
For personal use only Conclusion Judy Barraclough, Head of Strategy and Corporate Affairs
Slide 65: GPT's competitive advantage
Conclusion GPT Investor Day GPT’s competitive advantage For personal use only High quality, diversified asset portfolio Active property management Deep capability Strong capital management 65