Gdi Property Group · ASX:GDI
Gdi Property — H1 FY2015 Earnings Presentation
44 slides from Gdi Property's earnings presentation, Feb 23, 2015
Slide 1: GDI Property Group Half yearly results presentation
For personal use only GDI PROPERTY GROUP Half yearly results presentation 23 February 2015
Slide 2: Disclaimer
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 uni
Slide 3: Introduction
For personal use only INTRODUCTION LINKING EQUITY MILL GREEN, TO PERFORMANCE PERTH 2
Slide 4: A solid first half
A solid first half FFO1 of $23.97 million, representing 52% of full year FFO guidance of $46.27 million For personal use only Paid our forecast distribution of 3.75 cents per stapled security Payout ratio of 89% of FFO and 100% of AFFO NTA2 per security of $0.96, up $0.03 from 30 June 2014 a
Slide 5: On track for FY15
On track for FY15 Confirm full year guidance of FFO of 8.2 cents per security and distribution of 7.5 cents per security For personal use only Balance sheet in a sound position with no debt expiry until 16 December 2016 Gearing of 34%1 Unutilised bank facilities of $34 million as at 31 Decem
Slide 6: Financial results
For personal use only FINANCIAL RESULTS LINKING EQUITY TO ST, 233 CASTLEREAGH PERFORMANCE SYDNEY 5
Slide 7: Profit and Loss
Profit and Loss Total comprehensive income for the period of $36.1 million, includes revaluations of +$25.5 million, mark to market loss on interest rate swaps of -$2.6 million and acquisition expenses relating to 66 Goulburn St, Sydney of -$7.6 million For personal use only Property income +$5.
Slide 8: NPAT to AFFO
NPAT to AFFO FFO of $23.97 million, 52% of full year guidance of $46.27 million Cash received from guarantees at 233 Castlereagh St, Sydney, 66 Goulburn St, Sydney and 307 Queen St, Brisbane, not For personal use only included in Property revenue Portfolio acquisition and other transaction cos
Slide 9: Balance sheet in a strong position
Balance sheet in a strong position Property revaluations of $25.5 million equivalent to 4.5 cents per security For personal use only Principle contribution from the revaluation of 233 Castlereagh St, Sydney to $156 million as a result of the conditional sale announced on 6 November 2014 233 Ca
Slide 10: Debt profile
Debt profile Drawn debt of $309 million, split between 5 year (Tranche A) and 3 year (Tranche B) maturities For personal use only No expiry until FY17 (December 2016) Facility size Drawn Undrawn Expiry $’000 $’000 $’000 Tranche A 85,000 85,000 - Dec 18 Tranche B 228,000 224,000 4,000 Dec 16 Tran
Slide 11: Interest rate hedging
Interest rate hedging Board hedging policy of at least 50% of drawn debt hedged For personal use only post the acquisition of 66 Goulburn St, Sydney at 49%, but is expected to remain below target given strategy to sell 233 Castlereagh St, Sydney All in cost of drawn debt for the period of 4.71
Slide 12: Guidance and strategy
For personal use only GUIDANCE AND STRATEGY LINKING 66 EQUITY GOULBURN TO ST, PERFORMANCE SYDNEY 11
Slide 13: Guidance and strategy
Guidance and strategy Confirm Offer Document1 forecasts for FY15 FFO of 8.2c per security and distribution of 7.5c per security For personal use only Strategy remains unchanged, but management’s objectives for FY15 include: Strategy as detailed at 30 June 2014 Status as at 23 February 2014 Sell
Slide 14: Guidance and strategy
Guidance and strategy Strategy as detailed at 30 June 2014 Status as at 23 February 2014 For personal use only Lease at least 2,000sqm of net lettable area at 66 • Approximately 3,200sqm leased or subject to Heads of Goulburn St, Sydney Agreement Including the Guarantees1, increase occupancy to • Oc
Slide 15: Announcement of security buyback
Announcement of security buyback GDI Property Group today announces that its Board has approved an on-market securities buy-back For personal use only Should market conditions permit, GDI Property Group intends to undertake the buy-back of up to 5% of GDI Property Group securities over a 12 mont
Slide 16: The property portfolio
For personal use only THE PROPERTY PORTFOLIO LINKING 307 EQUITY QUEEN TO PERFORMANCE ST, BRISBANE 15
Slide 17: Portfolio overview
Portfolio overview For personal use only LINKING EQUITY TO PERFORMANCE 16
Slide 18: Portfolio overview
Portfolio overview Total NLA of 128,290 sqm For personal use only As at 16 February 2015, portfolio occupancy1 of 89% WALE1 (by NLA) of 4.2 years (by NLA), 4.6 years excluding 233 Castlereagh St, Sydney Weighted average capitalisation rate (WACR) of 8.0%, excluding 233 Castlereagh St, Sydney
Slide 19: Mill Green Complex
Mill Green Complex For personal use only LINKING EQUITY TO PERFORMANCE 18
Slide 20: Mill Green Complex
Mill Green Complex For personal use only LINKING EQUITY TO PERFORMANCE 19
Slide 21: Mill Green Complex
Mill Green Complex 197 St Georges Terrace near full occupancy For personal use only A full floor tenant negotiated an early release, but the half floor sub tenant remains in occupation 5 Mill Street is continuing to lease up well Remain committed to having at least Heads of Agreement for all
Slide 22: St Georges Terrace, Perth
197 St Georges Terrace, Perth For personal use only Actual view from Level 10 Refurbished foyer LINKING EQUITY TO PERFORMANCE 21
Slide 23: St Georges Terrace, Perth
197 St Georges Terrace, Perth Lease expiry profile Key metrics as at 23 February 2015 70% For personal use only Independent valuation date 31 December 2014 60% Independent valuation $239 million Rate/sqm of NLA $9,000 50% Capitalisation rate 8.00% Discount rate 8.75% 40% Grade A 30% Total NLA (sqm)
Slide 24: Mill Street, Perth
5 Mill Street, Perth For personal use only Mill Green LINKING EQUITY TO PERFORMANCE 23
Slide 25: Mill Street, Perth
5 Mill Street, Perth Lease expiry profile Key metrics as at 23 February 2015 35% For personal use only Independent valuation date 31 December 2014 Independent valuation $54 million 30% Rate/sqm of NLA $7,516 25% Capitalisation rate 8.25% Discount rate 8.75% 20% Grade B NLA Total (sqm) 7,185 15% Typi
Slide 26: Mill Street, Perth
1 Mill Street, Perth Key metrics as at 23 February 2015 For personal use only Independent valuation date 31 December 2014 Independent valuation $41 million Rate/sqm of NLA $6,167 Capitalisation rate 8.25% Discount rate 9.00% Grade A NLA Total (sqm) 6,648 Typical floor plate (sqm) 1,900 Car parking 4
Slide 27: Castlereagh Street, Sydney
233 Castlereagh Street, Sydney For personal use only View from rooftop Refurbished foyer LINKING EQUITY TO PERFORMANCE 26
Slide 28: Castlereagh Street, Sydney
233 Castlereagh Street, Sydney For personal use only LINKING EQUITY TO PERFORMANCE 27
Slide 29: Castlereagh Street, Sydney
233 Castlereagh Street, Sydney Entered in to conditional put and call options to sell 233 Castlereagh St, Sydney on 6 November 2014 for an eventual settlement on 30 September 2015 For personal use only The Option Deed is conditional upon GDI Property Group procuring by 30 September 2015 delivery
Slide 30: Castlereagh Street, Sydney
233 Castlereagh Street, Sydney Lease expiry profile Key Metrics as at 23 February 2015 30.00% For personal use only Director’s valuation date 31 December 2014 Director’s valuation $156 million 25.00% Rate/sqm of NLA $7,843 Capitalisation rate N/A 20.00% Discount rate N/A Grade B 15.00% NLA Total 19,
Slide 31: Queen Street, Brisbane
307 Queen Street, Brisbane For personal use only Refurbished foyer Refurbished tenant lobby LINKING EQUITY TO PERFORMANCE 30
Slide 32: Queen Street, Brisbane
307 Queen Street, Brisbane For personal use only LINKING EQUITY TO PERFORMANCE 31
Slide 33: Queen Street, Brisbane
307 Queen Street, Brisbane The Brisbane CBD office market during the six month period ended 31 December 2014 was generally characterised by reasonable levels of tenant enquiry but minimal commitment. However, the early part of For personal use only 2015 points to a much stronger take up of office
Slide 34: Queen Street, Brisbane
307 Queen Street, Brisbane Lease expiry profile Key metrics as at 23 February 2015 30.00% For personal use only Independent valuation date 30 June 2014 Independent valuation $121 million 25.00% Rate/sqm of NLA $6,175 Capitalisation rate 8.00% 20.00% Discount rate 9.00% Grade B 15.00% NLA Total (sqm)
Slide 35: Grenfell Street, Adelaide
25 Grenfell Street, Adelaide For personal use only LINKING EQUITY TO PERFORMANCE 34
Slide 36: Grenfell Street, Adelaide
25 Grenfell Street, Adelaide For personal use only LINKING EQUITY TO PERFORMANCE 35
Slide 37: Grenfell Street, Adelaide
25 Grenfell Street, Adelaide New full floor lease to Regus Service Offices executed commencing 1 May 2015 For personal use only Heads of Agreement with Funds SA for 780sqm for 10 years Replacing two CY15 expiring leases, with one of those two reducing space and taking the balance of the floor
Slide 38: Grenfell Street, Adelaide
25 Grenfell Street, Adelaide Lease expiry profile Key metrics as at 23 February 2015 60.00% For personal use only Independent valuation date 31 December 2014 Independent valuation $109 million 50.00% Rate/sqm of NLA $4,293 Capitalisation rate 8.25% 40.00% Discount rate 9.00% 30.00% Grade A Total NLA
Slide 39: Goulburn Street, Sydney
66 Goulburn Street, Sydney For personal use only Concept design – tenancy foyer Concept design – Building entrance LINKING EQUITY TO PERFORMANCE 38
Slide 40: Goulburn Street, Sydney
66 Goulburn Street, Sydney For personal use only LINKING EQUITY TO PERFORMANCE 39
Slide 41: Goulburn Street, Sydney
66 Goulburn Street, Sydney Strong leasing activity over vacant space, in excess of management’s forecasts For personal use only Two four year leases executed and commenced for Level 7 (bottom level of office tower) Heads of Agreement for 1,500sqm (Level 12 and Part 11) Heads of Agreement for
Slide 42: Goulburn Street, Sydney
66 Goulburn Street, Sydney Lease expiry profile Key metrics as at 23 February 2015 70% For personal use only Independent valuation date 26 May 2014 60% Independent valuation $138 million Rate/sqm of NLA $5,992 50% Capitalisation rate 7.50% Discount rate 9.00% 40% Grade A 30% NLA Total (sqm) 23,029 T
Slide 43: Funds business
For personal use only FUNDS BUSINESS LINKING 25 EQUITY GRENFELL ST,TO PERFORMANCE ADELAIDE 42
Slide 44: Existing Funds Business
Existing Funds Business For personal use only Date AUM No. of Expected termination established $m properties Sector date (year) Update Complete asset refurbishments and GDI No. 27 June 2007 14.0 2 Office CY16 position both assets for sale in CY16 GDI No. 28 June 2007 14.0 1 Office CY17 Actively mana