Gpt Group · ASX:GPT
Gpt — H1 2021 Earnings Presentation
43 slides from Gpt's earnings presentation, Aug 16, 2021
Slide 1: 2021 Interim Result Presentation
16 August 2021 2021 Interim Result Presentation GPT provides its 2021 Interim Result Presentation which is authorised for release by the GPT Group Board. -ENDS- For more information, please contact: INVESTORS MEDIA Penny Berger Grant Taylor Head of Investor Relations & Corporate Communications Manag
Slide 2: Interim Result 2021 Market Briefing
2021 Interim Result 2021 Agenda Market Briefing 1516 February August 2021
Slide 3: Traditional Custodians Acknowledgement
The GPT Group acknowledges the Traditional Custodians of the lands on which our business and assets operate, and recognises their ongoing connection to land, waters and community. We pay our respects to First Nations Elders past, present and emerging. Artwork created by Molly Wallace
Slide 4: 2021 Half Year in Review agenda
2021 Half Year in Review | Bob Johnston 4 Finance and Treasury | Anastasia Clarke 9 Office and Logistics | Matthew Faddy 13 Retail | Chris Barnett 28 Funds Management | Nicholas Harris 36 Summary and outlook | Bob Johnston 39 Agenda 2021 Interim Result 2021
Slide 5: Strong first half recovery interrupted by recent COVID-19 restrictions
Strong first half recovery interrupted by recent COVID-19 restrictions » Strong momentum in six months to 30 June 2021 − Operating environment strengthened from economic recovery − Minimal disruptions from COVID-19 − Robust recovery in retail sales − 104% of 1H 2021 Retail net billings collected − C
Slide 6: Financial summary
2021 Interim Result Financial summary 15.64cents 13.3cents Funds From Operations Distribution per security, up 24.6% per security, up 43.0% $5.86 10.2% Net Tangible Assets per security, up 5.2%1 Total Return2 Investment portfolio Portfolio occupancy 95.6% Assets under management $25.3b Weighted aver
Slide 7: Logistics driving increased portfolio valuation
Logistics driving increased portfolio valuation Overall portfolio valuation increased $471.7m (+3.3%) » Office portfolio valuation metrics supported by strong investor demand and transactions » Logistics portfolio significant valuation gain driven by firming investment metrics and unprecedented inve
Slide 8: Delivering on strategic priorities
Delivering on strategic priorities » Logistics portfolio more than doubled since 2017 to $3.4b, with extensive $1.4b development pipeline1 » GPT QuadReal Logistics Trust targeted investment increased to $1b, with 53% of initial $800m committed STRATEGIC PRIORITIES » $780m of Office development compl
Slide 9: Demonstrating leadership in sustainability
Demonstrating leadership in sustainability Maximum 2nd globally Industry-leading World-leading Industry-leading 5 Star status for GPT, in real estate ESG performance GWOF carbon neutral portfolio carbon neutral target GWOF and GWSCF certification2 1 1 75% reduction 5.8 Star Employer of $450,000 Stre
Slide 10: Finance and Treasury
Agenda and Treasury Finance 2021 Interim Result 2021
Slide 11: Financial summary 1H 2021
Financial summary 1H 2021 $760.5m $302.3m Statutory Net Profit After Tax Funds From Operations ($m) 1H 2021 1H 2020 Change Funds From Operations (FFO) 302.3 244.5 23.6% Valuation increases/(decreases) 471.7 (711.3) Treasury instruments marked to market 0.5 (51.5) Other items (14.0) (2.1) Net Profit
Slide 12: Segment result
Segment result ($m) 1H 2021 1H 2020 Change Comments Cash collections 104%, outstanding net debt of $22m. Reduction in Retail 140.8 79.2 77.8% COVID-19 allowances, offset by normalisation of operating expenses Cash collections 100%. Sale of Farrer Place in December 2020 offset Office 134.5 139.9 (3.9
Slide 13: Capital management
Capital management Key Statistics Jun 2021 Dec 2020 Net Tangible Assets per security $5.86 $5.57 Net Gearing 24.5% 23.2% Weighted average cost of debt 2.7% 3.1% Sources of Drawn Debt As at 30 June 2021 Weighted average term to maturity 7.4 years 7.8 years Interest cover ratio 7.9x 6.4x Domestic bank
Slide 14: Office and Treasury
Agenda Finance Office and Treasury 2021 Interim Result 2021
Slide 15: Office overview
Office overview $134.5m 5.0yrs Segment contribution, Weighted average comparable growth up 1.8% lease expiry 5.8stars 4.87% NABERS Energy Weighted average (average)1 capitalisation rate Development Completions $780m Occupancy – Stabilised2 92.0% Occupancy – Signed leases 37,900sqm Incl. Development
Slide 16: Achieving leasing in a challenging environment
Achieving leasing in a challenging environment » Signed leases of 37,900sqm with Heads of Agreement (HoA) of 23,200sqm in 1H 2021 » Negotiations well advanced across 51,400sqm » Leasing sentiment in Sydney CBD ran ahead of Melbourne in 1H 2021, with smaller occupiers most active » GPT occupancy sust
Slide 17: Development completions of $780m
Development completions of $780m 32 Smith Queen & Collins Parramatta, NSW Melbourne, VIC 100% 100% GPT Ownership GWOF Ownership January 2021 June 2021 Practical Completion Practical Completion 6 Star 6 Star Green Star - Design rating¹ Green Star - Design rating¹ $325.0m $454.0m Fair Value 30 June 20
Slide 18: Development pipeline of >$3.5b
Development pipeline of >$3.5b¹ » Development pipeline delivering portfolio growth and enhanced returns » Targeting unlevered project IRRs of >12% » Sustainability focus targeting 6 Star Green Star ratings, creating assets that are carbon neutral from first day of operation, reducing embodied carbon
Slide 19: Listening to customers; investing to drive high occupancy and rental growth
Listening to customers; investing to drive high occupancy and rental growth Agility Flexibility Asset Investments » Speed to transact with inhouse » Leveraging Space&Co. to facilitate leasing » Healthy building upgrades including leasing and asset management teams transactions, for project requireme
Slide 20: Office portfolio outlook
Office portfolio outlook High quality assets in deepest office markets » Delivered a 12 month total return of 7.6% » $5.8b on balance sheet and $13.3b of assets under management » All prime grade assets and eastern seaboard focus Customer Industry – Office Tenant Income » Sustainability leadership w
Slide 21: Logistics
Agenda Logistics 2021 Interim Result 2021
Slide 22: Logistics overview
Logistics overview $75.5m 6.6yrs Segment contribution up 17.2%, comparable Weighted average growth up 1.6% lease expiry $3.4b 4.38% Logistics portfolio Weighted average up 13% in 1H 2021 capitalisation rate Total Return – 12 months 24.2% Signed leases 58,900sqm Completions and acquisitions exchanged
Slide 23: Developments and acquisitions driving growth
Developments and acquisitions driving growth » Completed $51.2m development at Glendenning, now leased for a 10 year term » Secured two fund-through acquisitions and two land parcels for future development with an estimated end value of $370m » In August 2021 additional land acquired by GPT QuadReal
Slide 24: High quality portfolio with diverse customer base
High quality portfolio with diverse customer base » High quality tenants, predominantly distribution centres, warehousing and cold storage » >70% income from ASX listed companies and multinationals » Strong WALE of 6.6 years » Broadening embedded customer relationships and expanding our footprint to
Slide 25: Developments of $170m underway
Developments of $170m underway » Four developments on track for completion in 2H 2021 » Leasing progressing well with 80% committed Artist’s impression Artist’s impression Artist’s impression Wembley Business Park – Stage 4 Metroplex Place Gateway Logistics Hub – Stage 3 Gateway Logistics Hub – Stag
Slide 26: Progressing Yiribana Logistics Estate in Kemps Creek
Progressing Yiribana Logistics Estate in Kemps Creek » Delivery of first facility expected in 2022 » Acquisition of additional land in 1H 2021 provides a 37.2 hectare site fronting Mamre Road » Combined site has capacity for ~182,000sqm of prime logistics space, with an estimated end value of $600m
Slide 27: Development pipeline of $1.4b
Development pipeline of $1.4b Expected Timing GPT Completions Pipeline Estimated End Suburb State Ownership (%) 2H 2021 (sqm) (sqm)¹ Value ($m)² 2021 2022 2023 2024+ Gateway Logistics Hub Truganina VIC 100 53,800 61,600 205 Boundary Road Truganina VIC 100 128,200 250 Foundation Estate Truganina VIC
Slide 28: Logistics portfolio outlook
Logistics portfolio outlook » Modern portfolio, low maintenance capex delivering attractive cash yield » Focused on product creation, with half of portfolio developed by GPT » Strategically located in key transport corridors » Sustainability investments including solar, water harvesting and batterie
Slide 29: Retail and Treasury
Agenda Finance Retail and Treasury 2021 Interim Result 2021
Slide 30: Retail overview
Retail overview $140.8m Segment contribution 98.9% 5.05% Weighted Average Portfolio Occupancy Capitalisation Rate Total Specialty +6.5% Specialty $9,769psm Sales Growth1 Sales (1H 2021 v 1H 2019) Productivity2 Leasing Deals Completed 412 Average Fixed Lease Terms 4.5yrs Highpoint Shopping Centre, VI
Slide 31: Strong leasing momentum evident
Strong leasing momentum evident » Highest deal count in any first half period since 2013 » Higher portfolio occupancy, improved leasing spreads and reduction in holdovers compared to December 2020 » Base rents with fixed annual rent increases being achieved on all deals, averaging 4.5 years 6 months
Slide 32: Sales growth well exceeding pre-COVID-19 levels
Sales growth well exceeding pre-COVID-19 levels Sales Growth by Category (1H 2021 v 1H 2019)1 24.4% 23.4% 13.5% 12.8% 9.6% 5.0% 6.5% 6.9% 6.5% 5.7% 1.8% 3.1% 1.5% -2.0% -0.3% -3.5% -48.5% Supermarkets Other Retail Leisure Total Centre DDS Cinemas General Retail Food Retail Dining Fashion Total Speci
Slide 33: Physical retail captures 87% share of growing market
Physical retail captures 87% share of growing market » Physical store sales continue to grow along with online retail sales » 32% of e-commerce transactions involve a physical store1 » Sophisticated omni-channel retailers in our portfolio experiencing stronger growth Westfield Penrith, NSW 1. Urbis
Slide 34: Brands continue to value physical footprints
Brands continue to value physical footprints » Strong retailer demand with more than 90 brands introduced to GPT’s portfolio in 1H 2021 » Retailer groups are investing in flagship stores and opening new concepts Highpoint Shopping Centre, VIC Melbourne Central, VIC » Remixes underway with existing »
Slide 35: Enhancing our retail and mixed-use assets
Enhancing our retail and mixed-use assets Rouse Hill Town Centre, NSW Highpoint Shopping Centre, VIC Sunshine Plaza, QLD » Total return 11.3% (12 months to June 2021) » One of Australia’s leading retail assets, » Dominant asset in SE QLD, trade area population located in a strong growth market with
Slide 36: Retail portfolio outlook
Retail portfolio outlook Quality assets in growth markets » $5.6b on balance sheet with $8.4b assets under management » Largest exposure to strong population growth markets of NSW and VIC relative to peers Assets well positioned to meet shifting customer demands » Leasing activity underpinned by on-
Slide 37: Funds Management
Agenda Finance and Treasury Funds Management 2021 Interim Result 2021
Slide 38: Funds management overview
Funds management overview $13.5b Sector diversity1 Assets under management up 4.7% Office 68% 7.9% Retail 29% Logistics 3% Contribution to Group earnings Assets under management $9.3b $3.9b Logistics Trust $0.3b2 Queen & Collins, Melbourne (Artist’s impression) 1. Assets under management, value by s
Slide 39: Leveraging the platform for expansion
Leveraging the platform for expansion GPT QuadReal Logistics Trust capital commitment increased to $1b » 53% of initial $800m target committed with five opportunities secured this year 1 − Two fund-through acquisitions with Bend Road, Keysborough and Boundary Road, Tarneit − One development underway
Slide 40: Summary and outlook
Agenda Finance Summary and andTreasury outlook 2021 Interim Result 2021
Slide 41: Summary and outlook
Summary and outlook » Strong first half momentum interrupted by recent COVID-19 restrictions. Impacts expected to be transitory with a recovery anticipated when restrictions are lifted » Further growth in Logistics through developments and acquisitions » Growth of Funds Management including delivery
Slide 42: Thank you for joining us
2021 Interim Result 2021 Agenda Thank you for joining us Questions
Slide 43: Disclaimer
Disclaimer The information provided in this presentation has been prepared by The GPT Group comprising GPT RE Limited (ACN 107 426 504) AFSL (286511), as responsible entity of the General Property Trust, and GPT Management Holdings Limited (ACN 113 510 188). The information provided in this presenta