Gdi Property Group · ASX:GDI
Gdi Property — H1 FY2025 Earnings Presentation
37 slides from Gdi Property's earnings presentation, Feb 24, 2025
Slide 1: Half Year Results
SS Lk Half Year Results [\cP 24 February 2025
Slide 2: Acknowledgement of Country and contents
Acknowledgement of Country GDI acknowledges and pays respect to the past, present and future Traditional Custodians and Elders of this nation and the continuation of INTRODUCTION DELIVERING ON FINANCIAL SNAPSHOT cultural, spiritual and educational practices of STRATEGY Aboriginal and Torres Strait I
Slide 3: Continued Strong Leasing Momentum
Over 16,000sqm of office space leased1 since beginning of FY25 > Continued leasing momentum from FY23/FY24 > Diversified offering allows us to work with existing tenants on expansion or relocation options FFO growth > 26% FFO2 growth from previous corresponding period > Property FFO2 increased 38% f
Slide 4: Core Properties: WS2 Vision, Collaboration and Partnerships
Awards WS2 – Vision, Collaboration and first-class Partnerships Property Council Awards WA 2024 Winner - Best Innovation Award The vision: to transform an underused annex on the Westralia Square site Commendation - Best Sustainable leveraging strong existing transport and pedestrian networks. Creati
Slide 5: Leasing and re-positioning Core Properties
MILL GREEN COMPLEX Assisting existing tenants – Transactions with eight existing tenants to assist them to expand, relocate or consolidate within the precinct 197 St Georges Terrace - Leasing up in accordance with our targeted part floor fitout strategy > Leased, renewed or relocated tenants occupyi
Slide 6: Asset sales
ASSET SALES AT A PREMIUM TO BOOK GDI No. 46 Property Trust > Two of the dealerships (GDI No. 46 Property Trust) sold via Burgess Rawson auctions at a 2+% premium to last independent valuation > A third was sold off market (settled post balance date) at a 22+% premium to last independent valuation >
Slide 7: Co-living JV Continues to Contribute High Returns
CO-LIVING JV CONTINUES TO CONTRIBUTE HIGH RETURNS > Continues to deliver on objective of achieving 20% return on initial invested capital, with an FFO contribution of $3.5 million for the period. Newman > Bedded down acquisition of Newman and immediately rebranded to The Lodge, Newman > Commenced re
Slide 8: Financial Snapshot
˃ Weighted average capitalisation rate of 6.7% ˃ Well within policy of sub 40% ˃ Average rate/sqm of NLA of $8,2931 ˃ LVR of 41% (covenant of 50%) and ICR of 2.0X (covenant 1.5X) on the syndicated facility FFO per security (cents) 4.0 NTA GEARING 3.5 3.0 3.07 2.5 2.64 2.45 2.0 1.5 FFO DISTRIBUTION 1
Slide 9: Contributors to FFO
Property Division FFO1 higher than previous corresponding period > 38% increase in Property FFO on previous corresponding period > Westralia Square complex +$5.6 million to $15.4 million > Mill Green +$1.1 million to $7.9 million > Carparks + $0.2 million to $2.4 million > Funds Business FFO benefit
Slide 10: Debt and Interest Rates
Syndicated Facility drawn to $361.3 million with undrawn debt of $35.2 million 31 December 2024 Maturity Facility Utilised Unutilised Secured Date $’000 $’000 $’000 Syndicated Facility Tranche A Yes December 2026 346,500 326,331 20,169 Tranche B Yes December 2026 50,000 35,000 15,000 A combination o
Slide 11: Perth Market Key Trends
> Positive net absorption continues +25,000sqm over six-month period ending January 20251 > Overall vacancy of 15.1%, a decrease from 15.5% in July 2024 > Leasing activity levels are good (expansionary activity, renewals) > Smallest sub-lease vacancy since 2011, 0.9% > Modest supply outlook > Tenant
Slide 12: WA Economy
GSP Growth Population Growth GROSS STATE PRODUCT PROJECTED TO 2031 AVG. OVER 4 YEARS Gross State Product (GSP) growth Total population to increase by 9.0% forecast to average 2.4%p.a. over the to 3.3 million people through 2035 next four years. Exports Infrastructure Spend % OF AUSTRALIAN EXPORTS OV
Slide 13: Perth market strongest performing office market
The Perth market has been the strongest performing office market over the last two years 100.0 80.0 60.0 34.87* 40.0 20.0 87.58 63.46 53.78 22.31 0.0 (,000sqm) -99.96 -20.0 -40.0 -60.0 -80.0 -100.0 -120.0 Adelaide CBD Brisbane CBD Melbourne CBD Perth CBD Sydney CBD *Net absorption for Perth CBD woul
Slide 14: Perth CBD Vacancy and Net Absorption
Perth CBD Vacancy Perth CBD Tenant New Premises (Re-sizing) – still expanding 45 Expansion 35 No Change JUL 24 JUL 24 Reduction Number of Transactions 15.5% 15.1% 25 15 Why Stable? 5 (5) Net Absorption Supply/Withdrawals + 25,186 SQM + 21,288 SQM (15) 2022 2023 2024 Perth CBD Occupancy by sqm 1990-2
Slide 15: Supply Gap Emerging 2025-2029
Supply Gap Emerging 2025-2029 Perth CBD Supply Pipeline (% of stock) FORECAST > 10% Supply % of Stock 20-year Average EQ: Lot 4, 21 The Esp. Rolling 3-yr Average EQ: 9 The Esp. 8% 6% Last 4-year 4% supply gap 2% 0% -2% -4% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 20
Slide 16: Perth CBD vacancy to trend downwards in 2026
Perth CBD vacancy to trend downwards in 2026 Perth CBD vacancy forecast Net Supply Sqm (RHS) 30% 150,000 Vacancy FORECAST > Vacancy 20K Sqm Net Absorption p.a. 130,000 25% Vacancy 40K Sqm Net Absorption p.a. 110,000 20% 90,000 15% Vacancy 70,000 Supply Sqm Last 4-year supply gap 10% 50,000 30,000 5%
Slide 17: Property Portfolio
Independent valuation Carrying Value 31/12/24 30/6/24 Details Date $m Cap rate % $m $m 141 St Georges Terrace, Perth Westralia Square 31/12/24 395.0 6.38 395.0 385.2 143 St Georges Terrace, Perth (WS2) 31/12/24 105.0 6.38 105.0 99.1 197 St Georges Terrace, Perth 31/12/23 205.0 7.25 211.1 209.5 5 Mil
Slide 18: Property Portfolio Key Statistics
Weighted average lease expiry1 Key Statistics Occupancy1 87% 100% WALE by occupied area1 5.15 years Weighted average capitalisation rate2 6.73% 80% Average value psm3 $8,293 Total NLA (sqm)2 123,951 60% 1. Excludes 1 Mill Street but includes the showrooms in the Autoleague portfolio and the two Pert
Slide 19: Property Portfolio
Westralia Square, Perth WS2, Perth 197 St Georges Tce, Perth 5 Mill Street, Perth Valuation Date 31 December 2024 31 December 2024 31 December 2023 31 December 2023 Valuation ($m) 395.0 105.0 205.0 54.0 Carrying Value ($m) 395.0 105.0 211.1 54.0 NLA (sqm) 32,581 9,468 26,127 7,148 Value ($/sqm) 11,1
Slide 20: Property Portfolio
1 Mill Street, Perth 180 Hay Street, Perth Murray Street, Perth 301-311 Wellington Street, Perth 3 Valuation Date 31 December 2023 31 December 2023 31 December 2024 31 December 2024 Valuation ($m) 38.3 18.8 44.8 25.3 Carrying Value ($m) 38.3 18.8 44.8 25.3 NLA (sqm) 6,648 4,927 - - Value ($/sqm) 5,7
Slide 21: Property Portfolio
Autoleague WA Stanley Place, Townsville Valuation Date 31 December 2023 2 April 2024 Valuation ($m) 125.6 43.5 Carrying Value ($m) 125.5 43.7 NLA (sqm) n/a 12,820 Value ($/sqm) - 3,408 Discount Rate (%) 7.263 8.50 Capitalisation rate (%) 6.393 8.00 Occupancy1 (of NLA) (%) 100.0 86.2 WALE 2 (years) 5
Slide 22: Fund Business Highlights
GDI No. 43 Property Trust GDI No. 36 Perth CBD Office Trust Council approval to remove both the road Lease transactions with existing tenants has reduced easement and the fixed term right of use provides short-term expiry risks IKEA with the opportunity for long-term tenure and Capital support from
Slide 23: Strategy Execution
> Leased or renewed over 16,000sqm of office space, including assets in the Funds Business > Notwithstanding lower levels of reported lease enquiries, GDI was very active > Focus is on leasing remaining space and growth opportunities > Boosting total FFO and property FFO in line with leasing strateg
Slide 24: Strategy Execution
> Refinancing > Removal of Legacy Issues > Board Renewal > Significant Leasing Strategy and Guidance 24 Strategy Execution
Slide 25: Guidance for FY25
Distribution guidance of; , subject to no material change in circumstances or unforeseen events. We anticipate that a proportion of any cash distribution for FY25 will be paid out of capital. 2.50 cents per security cash distribution determined for December 20241, payable 28 February 2025 GDI remain
Slide 26: Business Model
Ensure the GDI skills and capability DRIVEN BY: INVESTMENT matches our ability to execute on our Proposition • Entering and exiting markets and recycling our capital strategy. GDI must have an elite team ACHIEVE OPTIMAL To be the best office building total • To maximise to property RETURNS THROUGH A
Slide 27: ESG Trends
“The environmental train has left the station” Primary ESG Themes – Perth ˃ Resources industry overtly focussing (offset dirty industry perception) ˃ Majors leading change through supply chain (a “must demonstrate” Emissions Commitment Emissions Commitment criteria) Net Zero by 2050 50% reduction by
Slide 28: GDI Opportunities | Construction Ready Projects
301-311 Wellington Street Perth ˃ DA approved for 28,000m2 NLA commercial and 51 residential unit development ˃ Setup for government tenant (whole of building) A Appendix 28 GDI Opportunities | Construction Ready Projects
Slide 29: GDI Opportunities | Construction Ready Projects
1 Mill Street Perth ˃ Existing Building 6,000m2 ˃ Approved DA 35,000m2 NLA (circa 1,800m2 NLA floor plates) ˃ Opportunity to stage in smaller sub- buildings (and speculate) ˃ Whole of building tenant opportunity for sub-buildings (circa 10,000m2 NLA stages) A Appendix 29 GDI Opportunities | Construc
Slide 30: The Portfolio | Weighted Average Lease Expiry
Westralia Square Westralia Square 2 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% Vacant FY25 FY26 FY27 FY28 FY29 FY30+ Vacant FY25 FY26 FY27 FY28 FY29 FY30+ 197 St Georges Terrace 5 Mill Street 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% A Vacant FY25 FY26 FY27 FY28 FY29 FY30+ Vacant FY25 FY2
Slide 31: The Portfolio | Weighted Average Lease Expiry
1 Mill Street 180 Hay Street 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% Vacant FY25 FY26 FY27 FY28 FY29 FY30+ Vacant FY25 FY26 FY27 FY28 FY29 FY30+ 235 Stanley Street Autoleague Portfolio 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% Vacant FY25 FY26 FY27 FY28 FY29+ FY30+ Vacant FY25 FY26 FY2
Slide 32: Balance Sheet
Dec-24 Jun-24 Balance sheet $’000 $’000 Current assets Cash and cash equivalents 15,064 17,014 Non-current asset held for sale 1,549 - Derivative financial instruments 19 536 Other assets 14,205 9,958 Total current assets 30,837 27,508 Non-current assets ˃ Includes GDI No. 42 Office Trust (Stanley P
Slide 33: Profit or Loss
GDI Trust Profit or loss Dec-24 Dec-23 Dec-24 Dec-23 $'000 $'000 $'000 $'000 Revenue from ordinary activities Property revenue 37,583 31,066 35,923 29,866 Funds management revenue 1,231 1,217 - - Interest revenue 295 219 1,341 1,234 Total revenue from ordinary activities 39,110 32,502 37,264 31,101
Slide 34: Net Profit after Tax to FFO
GDI Dec-24 Dec-23 $,000 $,000 Total comprehensive income / (loss) for the year 18,483 (7,388) Contribution resulting from consolidated trust (5,329) (5,031) Distributions / funds management fees received from consolidated trust 2,313 1,869 Straight lining adjustments (532) 302 Amortisation and depre
Slide 35: Property information
Property Period ended 31 December 2024 FFO 31 Dec 2024 FFO 31 Dec 2023 Capex Maintenance capex Incentives & lease costs $m $m $m $m $m 1 Mill St, Perth -0.2 -0.2 - - - 5 Mill St, Perth 2.0 2.1 0.1 - 0.8 197 St Georges Tce, Perth 6.1 4.9 1.7 0.1 1.9 Total Mill Green, Perth 7.9 6.8 1.8 0.1 2.7 Westral
Slide 36: 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 units in GDI P
Slide 37: GDI Property Group
GDI PROPERTY GROUP