GARDA Property Group · ASX:GDF
GARDA Property — FY2023 Earnings Presentation
31 slides from GARDA Property's earnings presentation, Jul 27, 2023
Slide 1: Annual Results Presentation June 2023
For personal use only GARDA PROPERTY GROUP (ASX: GDF) Annual Results Presentation | June 2023
Slide 2: Disclaimer
DISCLAIMER This presentation (Presentation) has been prepared on behalf of GARDA Property Group (GDF or Group or GARDA), comprising GARDA Holdings Limited (GHL) and its controlled entities and GARDA Capital Limited (ACN 095 039 366) (AFSL 246714) (GCL) as responsible entity of the GARDA Diversified
Slide 3: Chairman's Review
CHAIRMAN’S REVIEW KEY OPERATIONAL MESSAGES FINANCIAL PROPERTY For personal use only ▪1 Distributions for FY24 have been reduced to 6.3cps (FY23: 7.2cps) 1▪ The loss on sale of Box Hill and Mackay of $11.7 million, representing 5.5 cents of representing a 100% payout ratio (FY23: 100.6%) due to the i
Slide 4: Group Overview
GROUP OVERVIEW For personal use only Real Estate Platform Financial Position $600 Million1 $1.96 PORTFOLIO VALUE NTA PER SECURITY 4.9 Years 33.7% WALE GEARING 91% 6.3 CPS PORTFOLIO OCCUPANCY FY24 DPS GUIDANCE ~140,000m² | 28,000m² 5.1%2 DEVELOPMENT PIPELINE UNDER CONSTRUCTION FORECAST FY24 DISTRIBUT
Slide 5: GARDA Performance
GARDA PERFORMANCE 1 NTA per security ($) 2 Return on equity (%) $2.50 50% 46.3% For personal use only $2.05 $1.96 $2.00 40% 29.0% $1.45 30% $1.50 20% $1.00 10% $0.50 0% -0.9% $- FY21 FY22 FY23 -10% FY21 FY22 FY23 3 DPS (cents) | Payout Ratio (%) 4 ASX discount to NTA (%) 8.0 110% Peer 1 (Ind.) Peer
Slide 6: Net Tangible Assets Reconcile
NET TANGIBLE ASSETS RECONCILE 4.4% DECREASE IN NTA PER SECURITY FOLLOWING ASSET RECYCLING PROGRAM For personal use only ▪ Properties divested in the asset recycling program including: ▪ Mackay sold for $35.5 million in December 2022, representing an initial yield of 7.4%; and ▪ Box Hill sold for 40.
Slide 7: Highlights
HIGHLIGHTS KEY OUTCOMES FOR THE YEAR ENDED 30 JUNE 2023 Valuations and Rent Growth Asset Recycling For personal use only ▪ 13 of 15 properties valued for financial year end resulting in a ▪ Recycling of established property remains the preferred form of ✓ ✓ modest fair value loss of $6.5 million. ca
Slide 8: Valuation Overview
VALUATION OVERVIEW INDEPENDENT VALUATION OUTCOMES 4.90% 6.36% 5.60% INDUSTRIAL CAP RATE OFFICE CAP RATE PORTFOLIO CAP RATE For personal use only Valuation Valuation Cap Rate Movement Occupancy WALE Property Sector Date ($m) (%) (%) (%) (years) ▪ Asset sales during the reporting period included Acaci
Slide 9: Asset Recycling Program
ASSET RECYCLING PROGRAM $75 MILLION OF CAPITAL HAS BEEN RELEASED AND ALLOCATED TO INDUSTRIAL PIPELINE 69-79 Diesel Drive, Mackay For personal use only ▪ GARDA acquired Mackay in 2016 for $29.5 million. ▪ Sale occurred on 8 December 2022 for $35.5 million, representing a 20.3% premium to the original
Slide 10: Portfolio Leasing
PORTFOLIO LEASING HIGH TENANT RETENTION RATES IN CAIRNS For personal use only 3,693m² 91% FY23 OFFICE LEASING PORTFOLIO OCCUPANCY Portfolio Leasing ▪ Limited portfolio leasing has occurred during the financial year given only 2% of gross income was due to expire. ▪ Eight office leases representing 3
Slide 11: Lease Expiry Profile
LEASE EXPIRY PROFILE LIMITED REVENUE EXPIRY IN FY24 ‘At Risk’ Income For personal use only ▪ Limited income is at risk in FY24, with only three small office tenancies in Cairns due to expire, representing 641m² or 1% of gross income. ▪ FY25 expiry includes: ▪ Berrinba (industrial) – TLC Warehouse So
Slide 12: Industrial Development
For personal use only INDUSTRIAL DEVELOPMENT
Slide 13: Brisbane Industrial Market Overview
BRISBANE INDUSTRIAL MARKET OVERVIEW CONTINUED MARKET RENT GROWTH EXPECTED For personal use only ▪ Market rents across Brisbane have grown at approximately 10% y-o-y (prime and super-prime) with established precincts providing superior locations with last mile logistics style accommodation growing at
Slide 14: 'Build to Own' Industrial Development Pipeline
‘BUILD TO OWN’ INDUSTRIAL DEVELOPMENT PIPELINE 28,000M² TO BE COMPLETED IN FY24 WITH BULK EARTH AND CIVIL WORKS TO BE COMPLETED AT NORTH LAKES AND WACOL For personal use only Morningside ▪ Asset extension 5,700 Acacia Ridge Stage 1B ▪ Asset extension 4,575 DA approved with early works program underw
Slide 15: Industrial Development Pipeline: Project Capital Requirements
INDUSTRIAL DEVELOPMENT PIPELINE PROJECT CAPITAL REQUIREMENTS Immediate development Bulk and civil works prior to development of built form FY23 FY24 Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 For personal use only Richlands ▪ Construction of 13,000m² facility well advanced with $16 million to complete compl
Slide 16: Pinnacle West Now Complete
PINNACLE WEST NOW COMPLETE DEVELOPED AND FULLY LEASED WITHIN FOUR YEARS OF ACQUISITION WORKS TO ESTATE QUALITY LAND CONSTRUCTION OF BUILT FORM INDUSTRIAL FACILITIES For personal use only A May 2019 B March 2020 C November 2020 D June 2022 E January 2023 Land Acquisition Bulk Earth Works Bldg C (6,00
Slide 17: Pinnacle East, Wacol
PINNACLE EAST, WACOL 12 MONTHS TO COMPLETE BULK EARTH WORKS PRIOR TO BUILT FORM For personal use only Western Corridor Development ▪ Pinnacle West, a 17,525m² industrial complex across three buildings reached practical competition in June 2023. ▪ Pinnacle East, is a 4.1 hectare site adjacent to Pinn
Slide 18: 109-135 Boundary Road, North Lakes, Queensland
109-135 BOUNDARY ROAD NORTH LAKES, QUEENSLAND For personal use only ~ 38,000m² of NLA across 4 buildings in advanced leasing discussions Early works program has ‘AS IS’ VALUATION SUMMARY commenced Valuation Date 1 May 2023 Valuation – development land $69,500,000 Total Useable Land (m²) 249,970 Bulk
Slide 19: 56-72 Bandara Street, Richlands, Queensland
56-72 BANDARA STREET RICHLANDS, QUEENSLAND ASSET SUMMARY Land Area (m²) 30,351 PROJECT STATUS Lettable Area (m²) 13,000 For personal use only ▪ Construction of the 13,000m² industrial facility is well advanced. Occupancy (by income) ‘on completion’ 100% ▪ The facility will provide 11,000m² of indust
Slide 20: 38-56 Peterkin Street, Acacia Ridge, Queensland
38-56 PETERKIN STREET ACACIA RIDGE, QUEENSLAND ASSET SUMMARY Land Area (m²) 34,275 PROJECT STATUS Lettable Area (m²) 15,000 ▪ Minor contamination was identified following demolition of the previous existing aged For personal use only Occupancy (by income) ‘on completion’ 0% improvements. ▪ Remediati
Slide 21: Property Portfolio
For personal use only PROPERTY PORTFOLIO 41 Bivouac Pl, Wacol
Slide 22: Portfolio Overview
PORTFOLIO OVERVIEW RECYCLING AND DEVELOPMENT IS REWEIGHTING PORTFOLIO TO BRISBANE INDUSTRIAL Sector (by Value) Top 10 Tenants Sector (by Value) Industrial Land / Development Office Mixed Use Industrial Land / Development Office Mixed Use Tenant Property Gross Income (%) For personal use only 4% Volv
Slide 23: Property Portfolio
PROPERTY PORTFOLIO INTEGRATED, COMMERCIAL AND INDUSTRIAL PROPERTY PLATFORM For personal use only 23
Slide 24: Finance
For personal use only FINANCE 41 Bivouac Pl, Wacol
Slide 25: Capital Management
CAPITAL MANAGEMENT INTEREST RATE HEDGING INCREASED TO $150 MILLION Hedge Profile Key Debt Metrics – 30 June 2023 Fixed Variable For personal use only Total debt facilities $290.0 million Drawn Debt $225.2 million ▪ At 30 June 2023, the facility was drawn to $225.2 million providing Cash $13.2 millio
Slide 26: Guidance
GUIDANCE PROJECT DELIVERY KEY TO REVENUE GROWTH FY24 Distribution and FFO Guidance ▪ FY24 distribution guidance of $0.063 per security, paid in $0.01575 quarterly payments. For personal use only ▪ The 26 July 2023 ASX closing price of $1.225 per security reflects a distribution yield of 5.1% and 38%
Slide 27: Funds From Operations
FUNDS FROM OPERATIONS 30 Jun 30 Jun For personal use only 2023 2022 $000 $000 Net profit / (loss) after tax1 (4,934) 140,519 Adjustments for non-cash items and one-off items: Valuations – (deduct increases) / add back decreases: Investment properties 6,470 (111,642) Derivatives (638) (12,832) Asset
Slide 28: Income Statement
INCOME STATEMENT FY23 FY22 $000 $000 For personal use only Revenue ❶ Revenue decreased due to the net impact of: Revenue from ordinary activities ❶ 31,556 33,709 ▪ reduced lease revenue and recovery income following the Other income 418 68 divestment of Mackay and Box Hill; Net gain in fair value of
Slide 29: Balance Sheet
BALANCE SHEET 30 Jun 30 Jun ❶ Receivables and other assets largely comprises commercial loans 2023 2022 provided to external third parties. For personal use only $000 $000 Current assets ❷ Three property assets held for sale at: Cash and cash equivalents 13,164 19,794 ▪ Botanicca 7 office building i
Slide 30: Glossary
GLOSSARY DEFINITIONS AND EXPLANATIONS Item / Term Definition / Explanation For personal use only DPS Distribution per security EBIT Earnings before income tax as defined by GARDA’s Syndicated Facility Agreement. Calculated as the forecast FY24 distribution rate of $0.063 per security divided by GARD
Slide 31: For personal use only
For personal use only w: gardaproperty.com.au e: info@gardaproperty.com.au Level 21, 12 Creek Street, Brisbane QLD 4000 p: +61 7 3002 5300 GPO Box 5270, Brisbane QLD 4001