Gpt Group · ASX:GPT
Gpt — The GPT Group — FY2021 Earnings Presentation
41 slides from Gpt's earnings presentation, Feb 14, 2022
Slide 1: 2021 Annual Result Presentation
14 February 2022 2021 Annual Result Presentation For personal use only The GPT Group (‘GPT’) provides its 2021 Annual Result Presentation which is authorised for release by The GPT Group Board. -ENDS- For more information, please contact: INVESTORS AND MEDIA Penny Berger Head of Investor Relations a
Slide 2: Market Briefing Annual Result 2021
For personal use only Agenda Market Briefing Annual Result 2021 14 February 2022
Slide 3: Acknowledgement of Traditional Custodians
For personal use only 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. Agenda Annual Result 2021
Slide 4: Agenda
For personal use only 2021 Year in Review | Bob Johnston 4 Finance and Treasury | Anastasia Clarke 8 Office | Martin Ritchie 12 Logistics | Chris Davis 21 Retail | Chris Barnett 28 2022 Outlook | Bob Johnston 37 Agenda Agenda Annual Result 2021
Slide 5: 2021 Year in review
2021 Year in review » Strong momentum in 1H disrupted by Delta outbreak in 2H For personal use only − Restrictions more severe than 2020 − Retail rent collections in 3Q fell to 63% of gross billings, recovering to 101% in 4Q − Omicron has been a setback to the recovery − Melbourne Central continues
Slide 6: Financial summary
2021 Annual Result Financial summary For personal use only 28.82cents 23.2cents Funds From Operations Distribution per security, up 1.2% per security, up 3.1% $6.09 14.1% Net Tangible Assets Total Return1 per security, up 9.3% Investment portfolio Portfolio occupancy 97.7% Assets under management $2
Slide 7: Executing on strategic priorities
Executing on strategic priorities Our Priorities » Logistics portfolio expanded to $4.4b and now represents 27% of For personal use only portfolio weighting, with development pipeline1 of $1.6b Expand and optimise the portfolio − $1.3b of acquisitions exchanged and development completions2 Extend ca
Slide 8: Leadership in ESG
Leadership in ESG For personal use only Climate response Connection and community Disclosure and transparency Integrated approach » More carbon neutral building » Gender diversity of 50% achieved in » Independent verification and » Integrated risk management certified floor space than any other top
Slide 9: Finance and Treasury
For personal use only Agenda Finance and Treasury Annual Result 2021
Slide 10: Financial summary
Financial summary $1,422.8m $554.5m For personal use only Statutory Net Profit After Tax Funds From Operations ($m) 2021 20201 Change Funds From Operations (FFO) 554.5 554.7 - Valuation increases/(decreases) 924.3 (712.5) Treasury marked to market and other items (56.0) (55.4) Net Profit / (Loss) Af
Slide 11: Segment result
Segment result For personal use only ($m) 2021 2020 Change Comments Reduction in COVID-19 allowances (2021: $62.9m, 2020: $83.5m) Retail 233.9 225.7 3.6% partially offset by normalisation of operating expenses and negative rent reversions. Cash collection 91% of gross billings Sale of Farrer Place i
Slide 12: Capital management
Capital management Key Statistics 2021 2020 Sources of Drawn Debt As at 31 December 2021 For personal use only Net Tangible Assets per security $6.09 $5.57 Net Gearing 28.2% 23.2% Weighted average cost of debt 2.4% 3.1% CPI Bonds 2% Weighted average term to maturity 6.3 years 7.8 years Domestic bank
Slide 13: Office
For personal use only Agenda Office Annual Result 2021
Slide 14: Office overview
Office overview For personal use only $269.2m 11.2% Segment contribution Total Return down 4.5%, comparable Income Return growth of 2.0% of 4.7% 92.9% 4.77% Weighted Average Portfolio Occupancy, 94.8% excl. development Capitalisation Rate completions1 5.0years $4.5b+ Weighted Average Development Lea
Slide 15: Leasing momentum continues
Leasing momentum continues » 137,700sqm of signed leases across 119 transactions Office Occupancy by NLA at 31 December 2021 (%) 1 For personal use only Prime Market GPT » 102 of 138 leasing agreements were for spaces under 1,000sqm » Small tenants, government and technology tenants the most active
Slide 16: Future of work shapes our strategy
Future of work shapes our strategy » Identifying office space needs is challenging for our customers For personal use only » Pre-existing trends have been accelerated by the pandemic Work anywhere technology and behaviour Lease flexibility and on-demand space Distinctive spaces help win the war for
Slide 17: Leasing strategies
Leasing strategies GPT Lease Expiry Profile1 For personal use only Sydney CBD Parramatta Melbourne CBD Brisbane CBD 13% 12% 11% 7% 5% (sqm by Ownership) Vacant 2022 2023 2024 2025 Total Office Portfolio GPT 18,700 38,900 35,100 31,500 11,500 290,900 GWOF 51,200 28,400 44,600 51,700 34,000 603,500 GP
Slide 18: Promoting the high quality of the GPT portfolio
Promoting the high quality of the GPT portfolio Prime assets located in the deepest market For personal use only » Modern/recently refurbished lobbies with fresh and distinctive aesthetics » Amenity such as shared work/meeting spaces, cafes and end of trip facilities » High sustainability ratings of
Slide 19: Focus on the customer to be Landlord of choice
Focus on the customer to be Landlord of choice Customer centricity achieved Net Promoter Score1 of +72 For personal use only » Well resourced Leasing team in place » Increased resourcing of customer focused teams to offer high service » Hotel style concierge introduced at Queen & Collins, with wider
Slide 20: Growing through development
Growing through development » Delivered two developments in 2021 and pipeline opportunities of >$4.5b1 to grow portfolio and deliver enhanced returns For personal use only » Seeking pre-commitment for Cockle Bay Park and 300 Lonsdale Street, before commencing development » Stage 2 DA lodged for Cock
Slide 21: Office outlook
Office outlook GPT portfolio is well located, presented and serviced For personal use only » High quality, sustainable, modern assets » Customer service focus of on-site teams » Leasing team with demonstrated capability Income growth expected in 2022 » Average structured rent increases of 3.8% acros
Slide 22: Logistics
For personal use only Agenda Logistics Annual Result 2021
Slide 23: Logistics overview
Logistics overview For personal use only $154.7m 25.1% Segment contribution up 11.0%, comparable Total Return growth of 1.4% 98.8% 4.11% Portfolio Weighted Average Occupancy Capitalisation Rate 6.5years $1.3b Weighted Average Completions and Lease Expiry acquisitions exchanged1 GPT Logistics growth
Slide 24: Executing on growth strategy
Executing on growth strategy GPT Portfolio Growth 2017-2021 Strong growth delivered For personal use only GPT Portfolio ($b) Total Return (%) » 2021 growth of $1.4b from developments, settled acquisitions and 5.0 25.1 30.0 valuation uplift 4.5 15.2 12.1 15.1 20.0 11.2 » 26% portfolio value CAGR with
Slide 25: Completions and acquisitions exchanged of $1.3b
Completions and acquisitions exchanged of $1.3b $201m $669m For personal use only Investment Acquisition Development Completions Investment Acquisitions $308m $121m Ascot Capital Portfolio (23 logistics assets nationally) Purchase Price $596.7m | 100% GPT Fund-through Acquisitions1 Land Acquisitions
Slide 26: Quality portfolio and customer base
Quality portfolio and customer base » Portfolio expanded to 69 assets totalling 1.4 million sqm across Australia For personal use only » High occupancy of 98.8% and long WALE of 6.5 years » Diverse base of 110+ customers with 75% income from ASX listed companies and multinationals » Sustainability i
Slide 27: Logistics market
Logistics market Structural tailwinds driving tenant and investor demand For personal use only » Focus on efficient movement of goods, inventory management and growth in e-commerce » Transport and Retail tenants continue to drive demand » Weight of investor demand underpinning valuations Supply/dema
Slide 28: Development pipeline of $1.6b to capture future growth
Development pipeline of $1.6b to capture future growth » Landbank expanded across eastern seaboard growth corridors For personal use only » Four projects due for completion in 2022, expect to commence additional projects including the first stage of the Yiribana Logistics Estate Estimated Timing Und
Slide 29: Retail
For personal use only Agenda Retail Annual Result 2021
Slide 30: Retail overview
Retail overview For personal use only $233.9m 4.8% Segment Contribution Total Return up 3.6% 99.1% 5.03% Portfolio Occupancy Weighted Average Capitalisation Rate Specialty 6.2% $9,313psm Total Specialty Sales Sales Growth Productivity1 Leasing Deals Specialty $psm Sales Growth 10.6% Completed up 38.
Slide 31: Strong leasing momentum continues
Strong leasing momentum continues For personal use only » Significant deal activity in 2021 » All key leasing metrics improved on December 2020 » All specialty leasing deals incorporate fixed base rents and annual increases 12 months 12 months to to Dec 2021 Dec 2020 Deals Completed 5 61 404 Portfol
Slide 32: Total Centre Sales Growth
Total Centre Sales Growth » Sales impacted in 2020 and 2021 from lockdown periods For personal use only » 4Q 2021 impacted by extended restrictions in NSW during October » November and December 2021 exceeded prior year and have returned to pre-COVID levels Total Centre Sales Total Centre Sales – Fou
Slide 33: Sales Growth by Category
Sales Growth by Category » Sales growth in 2021 despite longer lockdowns For personal use only » Total Centre sales up 3.7% and Total Specialty sales up 6.2% − NSW down 4.5% impacted by 4 months of trading restrictions − Victoria up 17% reflecting return to in-store shopping post extended lockdowns
Slide 34: Melbourne Central | 2021 Highlights and Outlook
Melbourne Central | 2021 Highlights and Outlook For personal use only 62 deals in 2021 | 25 new brands Australian first | New flagships | First to market » Strong retailer demand including Australian-first ‘Monopoly Dreams’ demonstrates conviction to the asset » Investment in flagship stores by new
Slide 35: Highpoint | Driving retail performance in Melbourne's western growth corridor
Highpoint | Driving retail performance in Melbourne’s western growth corridor 125 deals in 2021 | 40 new brands For personal use only Key flagships | International brands | First to market Mixed-Use Masterplan Approved » Mixed-use masterplan approved in December, allowing Highpoint to transform into
Slide 36: Rouse Hill | Enhancing our retail and mixed-use assets
Rouse Hill | Enhancing our retail and mixed-use assets 100% Occupied | Majors remix completed Mixed-Use Masterplan Approved For personal use only MAT exceeding 2019 levels1 Indicative render of Masterplan – as at 2020 » Expansion expected to commence late 2022, delivering 10,500sqm of additional ret
Slide 37: Retail portfolio strategy and outlook
Retail portfolio strategy and outlook Optimise the portfolio and product offer For personal use only » Premium assets driving strong leasing outcomes » Mixed-use opportunities to deliver long term growth Leading customer experiences » Continued investment in customer experiences − Solving the conven
Slide 38: 2022 Outlook
For personal use only Agenda 2022 Outlook Annual Result 2021
Slide 39: 2022 Outlook
2022 Outlook » Economic growth is forecast to accelerate as the disruption from the For personal use only pandemic diminishes » Retail portfolio performance expected to recover quickly as community confidence lifts » Higher Office leasing volume will result in an increase in capital for lease incent
Slide 40: Thank you for joining us
For personal use only Agenda Thank you for joining us Annual Result 2021 Questions
Slide 41: Disclaimer
Disclaimer For personal use only 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 pro