Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — FY2010 Earnings Presentation
42 slides from Growthpoint Properties Australia's earnings presentation, Aug 17, 2010
Slide 1: Financial Year End Results and Equity Raising Presentation
Growthpoint Properties Australia (ASX Code:GOZ) Financial Year End Results and Equity Raising Presentation 17 August 2010 Coles Group property, Goulburn, NSW
Slide 2: Contents
Contents • Executive Summary • FY10 Annual Results Summary • Portfolio Acquisition and Rights Offer Summary • Financial Impact • Portfolio Acquisition Impact • Timetable and Conclusion • Key Risks • Glossary 2
Slide 3: Important Notice
Important Notice This presentation has been prepared by Growthpoint Properties Australia Limited ACN 124 093 901 (both in its capacity as responsible entity of Growthpoint Properties Australia Trust ARSN 120 121 002 and in its own capacity). In receiving this presentation, you are agreeing to the fo
Slide 4: Important Notice (cont.)
Important Notice (cont.) Past performance Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. Future performance and forward looking statements This presentation contains ce
Slide 5: Executive Summary
Star Track Express property, Tullamarine, VIC Executive Summary
Slide 6: Executive Summary
Executive Summary Result Highlights • Operating performance for FY10 in line with market guidance • Statutory profit from operations of $46.7 million (including fair value movements in investment properties and financial derivatives), equating to distributable profit of $22.4 million (14.0 cents per
Slide 7: Executive Summary (cont.)
Executive Summary (cont.) Capital Raising • Portfolio Acquisition to be funded by: • A renounceable Rights Offer of approximately $101 million • Existing Syndicated Debt Facilities (“Debt Facility”) headroom and upsizing1 • Offer Price of $1.90 per Stapled Security, which implies a pro forma FY11 di
Slide 8: FY10 Annual Results Summary
The Reject Shop property, Tullamarine, VIC FY10 Annual Results Summary
Slide 9: Results Summary
Results Summary Growthpoint Properties Australia reports positive FY10 results, in line with market guidance • Key result highlights: – Operating performance for FY10, in line with market guidance – Statutory profit from operations of $46.7 million (including fair value movements in investment prope
Slide 10: Results Summary
Results Summary FY 2010 H2 June 2010 H1 December 2009 $ million $ million $ million Net property income 59.3 31.0 28.3 Net profit 46.7 13.5 33.2 Distributions paid/payable 22.3 13.5 8.8 As at 30 June 2010 As at 31 December 2009 Change $ million $ million $ million Total assets 774.8 750.0 24.8 Inter
Slide 11: Results Summary – Distributable Income
Results Summary – Distributable Income FY 2010 H2 June 2010 H1 December 2009 Item $ million $ million $ million Net property income 59.3 31.0 28.3 Net interest (34.0) (16.2) (17.8) Management fee (0.3) (0.1) (0.2) Fund expenses (2.6) (1.1) (1.5) Distributable income 22.4 13.6 8.8 Distributions paid
Slide 12: Portfolio Acquisition and Rights Offer Summary
SKM Building, SW1: 32 Cordelia Street, South Brisbane, QLD Portfolio Acquisition and Rights Offer Summary
Slide 13: Portfolio Acquisition and Rights Offer
Portfolio Acquisition and Rights Offer Portfolio • Acquisition of 7 Queensland based properties comprising 2 office buildings, a car park and 4 industrial properties from the Property Acquisition Solutions Group for total price of $171.51 million due to complete on 28 September 2010 (subject to sati
Slide 14: Rights Offer (cont.)
Rights Offer (cont.) Offer Metrics Offer price1 $1.90 FY11 pro forma DPS guidance2 (Cents) 17.0 FY11 pro forma DPS yield on offer price2 9.0% Pro forma NTA per Stapled Security as at 30 June 2010 $1.99 Discount to Pro-forma NTA 4.7% Key Offer Dates Ex-date for Rights Offer and commencement of Rights
Slide 15: Sources and Application of Funds
Sources and Application of Funds • Proceeds from the equity raising, upsizing and drawdown of the existing Debt Facility will be used for the Portfolio Acquisition (refer to page 20 of this presentation for further details) Sources of Funds $m Uses of Funds $m Rights Offer1 101.1 Portfolio Acquisiti
Slide 16: Security Register Post Equity Raising
Growthpoint Properties Australia Security Register Post Equity Raising • Impact on Growthpoint Properties Australia security register is dependent on Rights Offer take-up by securityholders other than Growthpoint SA and Emira • In addition, Growthpoint SA may sell or renounce some of its Rights to e
Slide 17: Financial Impact
Caterpillar property, Tullamarine, VIC Financial Impact
Slide 18: Financial Impact
Financial Impact • FY11 distribution guidance of Distribution Per Security Guidance (cents) Yield based on Rights Issue Offer 17.1 cents per existing Stapled 1H FY11 2HFY11 FY11 Price 2 Security Existing Stapled Securities 8.4 8.7 17.1 9.0% • New Stapled Securities issued New Stapled Securities 4.5
Slide 19: Pro forma Balance Sheet
Pro forma Balance Sheet 30 June 2010 (pre Portfolio Equity raising and Portfolio 30 June 2010 (pro forma post Acquisition) Acquisition adjustments Portfolio Acquisition) $m $m $m Assets Cash 16.7 0.0 16.7 Investment Properties 756.9 182.61 939.4 Other assets 1.2 0.0 1.2 Total assets 774.9 182.6 957.
Slide 20: Debt and Hedging Profile (post Portfolio Acquisition)
Debt and Hedging Profile (post Portfolio Acquisition) • Existing Debt Facility with National Australia Bank and Westpac Banking Corporation upsized to fund Portfolio Acquisition • Debt Facility continues to have 30 June 2012 expiry • Following the Portfolio Acquisition, approximately $405 million of
Slide 21: Portfolio Acquisition Impact
SW 1 A4 – 52 Merivale Street, South Brisbane, QLD Portfolio Acquisition Impact
Slide 22: Improved Portfolio Scale and Diversity
Improved Portfolio Scale and Diversity • Addition of 7 high quality properties to the Group’s 30 Jun 2010 20 June 2010 portfolio Actual Pro forma – secure cash flows with fixed growth Portfolio Value $756.9 million $928.3 million1 – good WALE and tenants • High quality A-grade Brisbane office proper
Slide 23: Portfolio Valuations Summary
Portfolio Valuations Summary Valuation as at 31 30 June 2010 Valuation Change December 2009 No. of Market Market Market Type Properties Value $m Yield Value $m Yield $m % Value Yield Woolworths (WOW) 6 469.0 8.4% 481.7 8.2% 12.7 2.7% (0.2%) Non-Woolworths 18 209.5 9.1% 207.3 9.5% (2.2) (1.1%) 0.4% S
Slide 24: Increased Exposure to Queensland Property Market
Portfolio Acquisition Provides Increased Exposure to Queensland Property Market • Queensland exhibits strong population, employment and economic growth forecasts – Queensland is forecast to lead national pa growth forecasts over the next 4 years – Diversified economy with strength in key factors suc
Slide 25: Geographic and Sector Diversity
Geographic and Sector Diversity Growthpoint Properties Australia Assets (by value) Sector diversity (pre Portfolio Acquisition) Sector diversity (post Portfolio Acquisition) Industrial Office Car Park 100% 13% 1% Industrial 86% Geographic diversity (pre Portfolio Acquisition) Geographic diversity (p
Slide 26: Tenant Profile
Tenant Profile Growthpoint Properties Australia Tenant Profile (by rent) Lease expiry profile (post Portfolio Acquisition) Top 10 tenants (post Portfolio Acquisition) % Portfolio Tenant WALE1 100.0% leased Woolworths Limited 12.1 48% 75% Coles Group Limited 11.6 8% 80.0% Sinclair Knight Merz 8.3 6%
Slide 27: Portfolio Acquisition Details – SKM Building
Portfolio Acquisition Details SKM Building, SW1 – 32 Cordelia Street, South Brisbane, QLD Address 32 Cordelia Street, South Brisbane, QLD Property description Seven level office building Lettable area / car parks 10,052 square meters / 74 car parks Site area 2,667 square meters Ownership Long leaseh
Slide 28: Portfolio Acquisition Details – Merivale Street
Portfolio Acquisition Details SW 1 A4 – 52 Merivale Street, South Brisbane, QLD Address 52 Merivale Street, South Brisbane, QLD Property description Seven level office building Lettable area / car parks 9,453 square meters / 124 carparks Site area 2,331 square meters Ownership Long leasehold (999 ye
Slide 29: Portfolio Acquisition Details – Car Park
Portfolio Acquisition Details SW1 Car Park, 32 Cordelia Street & 52 Merivale Street, South Brisbane, QLD Property description Public car park to SW 1 development, South Brisbane,QLD Number of spaces 215 spaces over 2 levels. Site area 9,319 square meters Ownership Long leasehold (999 years) Construc
Slide 30: Portfolio Acquisition Details – 13 Business Street
Portfolio Acquisition Details 13 Business Street, Yatala, QLD Address 13 Business Street, Yatala, QLD Property description Office and warehouse building Lettable area 8,951 square meters Site area 1.863 hectares Ownership Freehold Constructed 2009 Tenant Reward Supply Co Pty Ltd Description Lease te
Slide 31: Portfolio Acquisition Details – 29 Business Street
Portfolio Acquisition Details 29 Business Street, Yatala, QLD Address 29 Business Street, Yatala, QLD Property description Modern office, warehouse and manufacturing facility Lettable area 8,680 square meters Site area 1.646 hectares Ownership Freehold Constructed 2009 Tenant CMC Coil Steels Pty Ltd
Slide 32: Portfolio Acquisition Details – Gassman Drive
Portfolio Acquisition Details 10 Gassman Drive, Yatala, QLD Address 10 Gassman Street, Yatala, QLD Property description Office and warehouse building Lettable area 3,188 square meters Site area 6,480 square meters Ownership Freehold Constructed 2008 Tenant Norman Ellison Carpets Lease term 9.0 years
Slide 33: Portfolio Acquisition Details – Macarthur Avenue
Portfolio Acquisition Details 670 Macarthur Avenue, Pinkenba, QLD Address 670 Macarthur Avenue, Pinkenba, QLD Property description Industrial facility Lettable area 5,577 square meters Site area 10,360 square meters Ownership Freehold Constructed 2006 Description Reliance Worldwide Pty Ltd (60% of G
Slide 34: Timetable and Conclusion
10 Gassman Drive, Yatala, QLD Timetable and Conclusion
Slide 35: Key Dates
Key Dates Event Indicative date Rights Offer announced via ASX 17 August 2010 Lodge Rights Offer Booklet, cleansing statement and appendix 3B 17 August 2010 Ex-date for Rights Offer and commencement of Rights Trading 19 August 2010 Rights Offer Record Date 25 August 2010 Despatch of Rights Offer Boo
Slide 36: Group Summary Post Portfolio Acquisition
Group Summary Post Portfolio Acquisition • Portfolio Acquisition will bring increased scale, geographic, tenant and sector diversity • Properties to be acquired maintain quality of Group’s portfolio characterised by secure, long term rental income from quality tenants and high quality 13 Business St
Slide 37: Key Risks
Woolworths property, Perth Airport, WA Key Risks
Slide 38: Key Risks
Key Risks • Market Perception Risk • Funding and Refinancing Risk • Acquisitions • Stapled Security Market Prices • Trust Taxation Status • Interest Rates • Property Valuation Risk • Insurance • Portfolio Acquisition Risk • Property Market Risks • Buildings Condition and Defects • Debt Covenants • P
Slide 39: Key Risks (cont.)
Key Risks (cont.) Market Perception Risk • The extent to which the Rights Offer enhances value for Securityholders depends on the Buildings Condition and Defects Rights Offer being viewed as a positive initiative by the market. There is a risk that this • The Group’s properties are professionally ma
Slide 40: Key Risks (cont.)
Key Risks (cont.) Funding and Refinancing Risk Litigation and Disputes • Market volatility has had a significant impact on the real estate sector and its ability to • Legal and other disputes (including industrial disputes) may arise from time to time in access capital from investors. The real estat
Slide 41: Glossary
Laminex (Fletcher Building) property, Tullamarine VIC Glossary
Slide 42: Glossary
Glossary $ All dollar values are in Australian dollars NTA Net tangible assets per Stapled Security ASX Australian Securities Exchange or ASX Limited The booklet comprising the offer to subscribe for New Stapled Offer Booklet Securities under the Rights Offer cps Cents per Stapled Security DPS Distr
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