Goodman New Zealand Limited & Goodman Property Services Limited Units · NZX:GNZ
Goodman New Zealand Limited & Goodman Property Services Limited Units — Goodman Property Trust — H1 2013 Earnings Presentation
34 slides from Goodman New Zealand Limited & Goodman Property Services Limited Units's earnings presentation, Nov 13, 2012
Slide 1: Half year results to 30 September 2012: Highbrook acquisition and capital raising
Half year results to 30 September 2012 Highbrook acquisition and capital raising 13 November 2012
Slide 2: Disclaimer and important information
Disclaimer and important information This presentation has been prepared by Goodman (NZ) Limited (“GNZ”) in its capacity as manager of the Goodman Property Trust (“Trust”), and is provided so that you may consider an invitation to participate in the proposed underwritten private placement of units (
Slide 3: Disclaimer and important information
Disclaimer and important information NEW ZEALAND The offer of Units referred to in this presentation is made in New Zealand only to investors: a) whose principal business is the investment of money or who, in the course of and for the purposes of their business, habitually invest money (for the purp
Slide 4: Disclaimer and important information
Disclaimer and important information SINGAPORE This presentation has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this presentation and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of Un
Slide 5: Executive summary
Executive summary Half year result + GMT has recorded a sound financial performance with improved profitability and a distributable earnings result consistent with earlier expectations Highbrook + Acquisition of Goodman Group’s 25% holding in Highbrook Development Limited (HDL) proposal (Goodman Acq
Slide 6: Contents
contents +01 interim result page 7 +02 highbrook acquisition page 8 +03 acquisition consideration page 18 +04 appendix - interim result page 25 +05 appendix - acquisitions page 31 Defined terms used in this document have the same meaning ascribed to them in the Glossary of the Notice of Meeting and
Slide 7: Interim result
Interim result Earnings & Profit + $37.6 million before tax profit compared to $34.9 million in pcp + $31.6 million after tax profit compared to $29.1 million in pcp + Distributable earnings before tax of $41.0 million or 4.07 cpu + Distributable earnings after tax of $37.6 million or 3.73 cpu + Net
Slide 8: Highbrook acquisition
+02 highbrook acquisition 8
Slide 9: Highbrook Business Park overview
Highbrook Business Park overview + Over 100 hectares of developable land strategically located in Auckland’s East Tamaki + Development started in 2005, with 240,000 sqm of prime industrial, office and business park assets now completed + The estate attracts some of New Zealand’s leading corporates a
Slide 10: Highbrook Business Park, New Zealand's premier business estate
Set amongst parklands and esplanade reserves, Highbrook Business Park is regarded as New Zealand's premier business estate
Slide 11: Highbrook Business Park – current structure
Highbrook Business Park – current structure + GMT is acquiring the remaining interests in Highbrook Business Park – 50% of HDL from Goodman Group and Fisher (25% each) – 25% of HBPL Properties from Fisher + Following the acquisition of these interests, GMT will have full ownership of Highbrook Busin
Slide 12: Acquisition benefits
Acquisition benefits + The acquisition of the remaining interests in Highbook Business Park is consistent with the Trust’s investment strategy1 and is expected to provide immediate and longer term benefits to the Trust + These benefits include: – enhancements to an already high quality property port
Slide 13: Improved portfolio metrics
Improved portfolio metrics + The following table summarises the portfolio impact of the Acquisitions with improvements to the quality and age of the GMT portfolio 1. Analysis excludes development land 13
Slide 14: Improved asset diversity
Improved asset diversity Asset diversification: pre Acquisitions Asset diversification: post Acquisitions Note: These charts represent the portfolio upon completion of all commenced development and infrastructure projects 14
Slide 15: Greater development potential
Greater development potential Highbrook Business Park + Development is a key element of GMT’s strategy for growth + Proven track record of successful projects that extend the customer base + GMT has built a quality portfolio that is difficult to replicate + Increased development capacity provides gr
Slide 16: Underpins financial strength
Underpins financial strength + The distributable earnings profile of the Trust is expected to FY13 Pre-tax distributable earnings guidance on a weighted average be maintained, on a weighted average issued Unit basis, issued Unit basis as a result of the acquisitions and associated equity initiatives
Slide 17: Transaction approvals
Transaction approvals + Unitholder approval is required for certain aspects of the Transaction due to the relationship between GMT and each of Goodman Group and Fisher, and because Units will be issued as part of consideration for the Acquisitions – Resolution: Approval of the Goodman Acquisition, t
Slide 18: Acquisition consideration
+03 acquisition consideration 18
Slide 19: Acquisition consideration
Acquisition consideration + The purchase price of the Acquisitions was determined by reference to the net asset value of HDL and the asset value of HBPL Properties as at 30 September 2012 + Goodman Group is to be paid in Units for its 25% holding in HDL – Issued at $1.00 per Unit, half in Units issu
Slide 20: Capital raising
Capital raising + Two separate initiatives targeting $80 million of equity to Placement metrics fund the cash component of the consideration for the Acquisitions and to provide capacity for future development Issue price $1.015625 activity Prior close $1.060 5 day VWAP $1.062 + Placement Discount to
Slide 21: Sources and uses
Sources and uses [To be updated from NOM] Cash Note: Values in the table above may not appear to sum accurately due to rounding 1. Unit Purchase Plan targeting $20.0 million (capped at $30.0 million) 21
Slide 22: Timetable
Timetable Event 2012/2013 Placement opens 11:00 am, 13 November Placement closes 5:00 pm, 13 November Placement allocations advised and offer confirmation letters dispatched Late, 13 November Placement result announced to NZX 14 November Placement settlement and allotment 16 November Notice of Meeti
Slide 23: Transaction summary
Transaction summary + Acquisitions represent excellent investment opportunity, enhancing GMT’s existing portfolio, extending its development capacity and underpining its future financial performance + Award winning, high quality estate that is being purchased with favourable consideration structure
Slide 24: BNZ Business Centre, Ford Building, Highbrook Business Park
BNZ Business Centre, Ford Building, Highbrook Business Park
Slide 25: Appendix - interim result
+04 appendix - interim result 25
Slide 26: Financial performance
Financial performance 6 months ended 30 September 2012 30 September 2011 Change $m $m % Distributable earnings before interest and tax 53.0 51.3 3.3 Interest (12.0) (11.1) (8.1) Distributable earnings before tax 41.0 40.2 2.0 Tax on distributable earnings (3.4) (3.3) (3.0) Distributable earnings aft
Slide 27: Financial position
Financial position as at 30 September 2012 31 March 2012 Change $m $m % Total assets 1,679.8 1,674.3 0.3 Property assets 1,641.6 1,629.5 0.7 Net borrowings 581.0 581.2 0.0 Liabilities 727.8 739.2 1.5 Equity 952.0 935.1 1.8 Net borrowings to property assets (%) 35.4 35.7 n/a NTA per Unit (cpu) 93.1 9
Slide 28: Capital management
Capital management GMT debt facilities maturity profile - $ millions + Strong balance sheet position: 200 – 35.4% loan to value ratio at the bottom of the 150 75 Board’s targeted range of 35% to 40% 150 – An interest cover ratio of 2.5 times1 and a weighted 100 100 26 100 average remaining term of 3
Slide 29: Investment portfolio
Investment portfolio Revenue reconciliation – portfolio income $ millions + Over 88,000 sqm of space secured on new or 58 revised terms 57 $0.7 $57.6 56 $1.8 + WALT of 5.4 years and occupancy rate of 96% 55 ($0.3) $55.4 54 + Customer retention rate in excess of 70% over 53 the last 2 years 52 51 + P
Slide 30: Development Update
Development Update The Crossing Stage 1 + Commencement of 35,900 sqm of development projects with a total project cost of $61.2 million – Forecast yield on cost of 8.8% – Includes activity at Central Park Corporate Centre, Glassworks Industry Park, M20 Business Park and Savill Link + Highbrook Busin
Slide 31: Appendix - acquisitions
+05 appendix - acquisitions 31
Slide 32: Highbrook Development Limited
Highbrook Development Limited HDL property portfolio + HDL is the entity developing Highbrook Business Park. Its property assets include investment properties, properties under development and development land. Note: Values in the table above may not appear to sum accurately due to rounding 1. The C
Slide 33: Highbrook Business Park Limited
Highbrook Business Park Limited + HBPL holds a portfolio of investment properties that were developed in the earlier stages of Highbrook Business Park HBPL property portfolio Note: Values in the table above may not appear to sum accurately due to rounding 33
Slide 34: Acquisition consideration
Acquisition consideration Acquisition consideration ,4 Note: Values in the table above may not appear to sum accurately due to rounding 1. Units will be issued at $1.00 per Unit. Therefore the value of Units shown is also the number of Units that will be issued 2 Goodman Group will receive two milli
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