Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — Debt Investor Presentation (May 2018)
54 slides from Growthpoint Properties Australia's debt investor presentation, May 2018
Slide 1: Green AMTN Investor Presentation – May 2018
Growthpoint Properties Australia (ASX Code: GOZ) Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409 www.growthpoint.com.au Green AMTN Investor Presentation – May 2018
Slide 2: Introduction
Introduction Dion Andrews, B.Bus, FCCA Chief Financial Officer, Company Secretary Dion is a Chartered Accountant and is responsible for the financial reporting obligations of the Group as well as debt structuring, raising debt capital and technology. Dion has over 15 years’ experience in accounting
Slide 3: Contents
Contents 15 Green Square Close, Fortitude Valley, QLD Overview 4 Appendices 32 Property portfolio 8 Appendix 1: CBI Certificate 33 Appendix 2: EY Assurance Statement 34 Recent performance 13 Appendix 3: State of key office markets 37 Appendix 4: State of key industrial markets 38 Operating sustainab
Slide 4: Overview
Overview 5 Murray Rose Avenue, Sydney Olympic Park, NSW
Slide 5: Growthpoint Properties Australia: Overview
Growthpoint Properties Australia: Overview Who are we? Our history Key portfolio highlights1 Growthpoint (GOZ) is an ASX-listed GOZ commenced in its current form in landlord with a mandate to invest in 2009 with A$650 million of industrial Australian office, industrial and retail real property. It h
Slide 6: Objectives and goals for sustainable growth
Objectives and goals for sustainable growth Increase Reposition & Enhance existing Increase liquidity Borrow prudently Operate sustainably distributions diversify property assets and free float ss Maintain gearing within ss We are in the early stages of portfolio 35%-45% range a long journey embeddi
Slide 7: Ownership
Ownership Strong Supportive Parent • GRT was the first South African Growthpoint company to issue a Green Bond on Securityholders (%) Growthpoint Properties Limited of the Johannesburg Stock Exchange. as at 31 December 2017 South Africa (“GRT”) owns 65.1% of the The R1.1 billion (USD94 million) bond
Slide 8: Property portfolio
Property portfolio 3 Murray Rose Avenue, Sydney Olympic Park, NSW
Slide 9: 87% of properties located on Eastern seaboard
87% of properties located on 26% Eastern seaboard1 Queensland $858.3m – Office $617.1m – Industrial $241.2m At 31 December 2017 Office properties Industrial properties 27% New South Wales $882.3m – Office $692.8m – Industrial $189.5m Office portfolio 98% Occupied 5% Australian Capital Territory $163
Slide 10: High quality tenants and low near-term expiries
High quality tenants and low near-term expiries Top ten tenants Portfolio lease expiry profile (%) Annual rent review type (%)1 by passing rent as at 31 December 2017 per financial year, by income as at 31 December 2017 48 WALE Tenant type % (yrs) 1 WARR 7 Woolworths (Distribution) Listed 15 5.0 red
Slide 11: Top five office properties/property groups by value
Top five office properties/property groups by value 59% of office portfolio $1,270.8m total value of top five properties / property groups 6.4yrs SW1 Complex, 1 Charles St, Sydney Olympic Park, 75 Dorcas St, Bldgs 1, 2, & 3, 572-576 weighted average South Brisbane, QLD Parramatta, NSW NSW South Melb
Slide 12: Top five industrial properties/property groups by value
Top five industrial properties/property groups by value 79% of industrial portfolio $893.6m total value of top five properties / property groups 5.2yrs Woolworths Linfox properties, Melbourne Airport Knoxfield industrial Perth Airport industrial weighted average Distribution Centres Erskine Park, NS
Slide 13: Recent performance
Recent performance Building B, 211 Wellington Road, Mulgrave, VIC
Slide 14: Highlights for HY18
Highlights for HY18 Property Sustainability • $3.3 billion property portfolio • Maintained average office portfolio • Like-for-like valuation uplift of $124.6 million, NABERS energy rating at 4.5 stars or 4% over HY18 • Improved gender diversity • Cap rate compression of 17 bps to 6.36% (46% of empl
Slide 15: Benefits of recent portfolio repositioning
Benefits of recent portfolio repositioning Divestments since December 2015 Acquisitions since December 2015 Office -$106.3m QLD ACT QLD NSW VIC +$727.3m Industrial -$258.5m VIC +$46.0m 31 Dec 15 31 Dec 17 NSW exposure 21% 27% QLD WA Office exposure 53% 66% 0 FFO DPS NTA Gearing CAGR +5.4%1 CAGR +4.4
Slide 16: Positive economic fundamentals support outlook
Positive economic fundamentals support outlook Unemployment (%) NAB Business Survey (net balance) Population growth (%) 30 2.3 6.4 20 6.2 1.7 1.6 1.6 1.6 6.0 10 Forecast 0 5.8 5.6 -10 5.4 -20 5.2 -30 Business Confidence Business Conditions NSW VIC QLD ACT Australia 5.0 -40 Total Population (m) Dec 1
Slide 17: Operating sustainably
Operating sustainably 5 Murray Rose Avenue, Sydney Olympic Park, NSW
Slide 18: Sustainability at the core of what we do
Sustainability at the core of what we do ... 2050 Commitment 100% reduction on Scope 1 and Scope 2 emissions by 2050 against 2016 base year. This new target is aligned with international climate NABERS average energy rating Investor communications improved 4.5s change actions and states Growthpoint’
Slide 19: ... and embedded into our operations
... and embedded into our operations ASSET MANAGEMENT LEASING Ongoing maintenance and investment Growthpoint has introduced a “green to improve green credentials of lease” program under which all ACQUISITIONS: 75 Dorcas St, DEVELOPMENT AND CAPEX: Growthpoint owned properties, new leases are consider
Slide 20: Growing portfolio by investing in sustainable development projects
Growing portfolio by investing in sustainable development projects New generation office development proposed for Richmond, VIC The new Richmond office development will offer the Melbourne metro office market a new benchmark in quality and amenity. Located in a prominent and commanding position at t
Slide 21: Growthpoint Green Bonds: Use of proceeds
Growthpoint Green Bonds: Use of proceeds • Proceeds fully allocated immediately upon bond issuance and throughout bond tenor to Eligible Assets • Currently, Eligible Assets comprise a portfolio of six commercial buildings valued at 3 Murray Rose 5 Murray Rose 15 Green Square 33-39 Richmond Building
Slide 22: Green Bond Opportunity
Green Bond Opportunity A Green Bond provides the opportunity to: • Reinforce our commitment to a transition to a low carbon economy; • Future-proof the sustainability of our funding program by opening up investment opportunities for a wider group of investors; and • Support the growth of the sustain
Slide 23: Growthpoint Green Bonds: External review
Growthpoint Green Bonds: External review • EY has provided pre-issuance assurance that the Framework is aligned to the Green Bond Principles and the CBS (refer appendix 2) in our opinion Growthpoint’s bond issuance • EY has also provided pre-issuance assurance that the Use in relation to its 2018 Gr
Slide 24: Growthpoint Green Bonds: Process for project evaluation and selection
Growthpoint Green Bonds: Process for project evaluation and selection Eligible Assets may be added or removed over time. The process for identifying replacement Eligible Assets is detailed in the Framework, with an overview below: 1 2 3 4 5 6 7 Finance and Consider Consult with Confirm Add to regist
Slide 25: Growthpoint Green Bonds: Management of proceeds and reporting
Growthpoint Green Bonds: Management of proceeds and reporting Initial allocation Reporting • Proceeds will be fully allocated on issuance, with Growthpoint recognises investor interest in reporting and transparency and will report intention to maintain full allocation throughout tenor. as follows: I
Slide 26: Financial Overview
Financial Overview 15 Green Square Close, Fortitude Valley, QLD
Slide 27: Five year historical financial performance
Five year historical financial performance 6 months to Years ended 30 June 31 Dec 2017 FY17 FY16 FY15 FY14 FY13 Financial performance Investment income $m 261.0 383.4 302.1 361.5 198.5 171.5 Profit for the period $m 207.3 278.1 219.4 283.0 117.3 94.0 Financial position Total assets $m 3,400.0 3,328.
Slide 28: Debt maturity profile
Debt maturity profile December 2017 proforma ($m)1 Bank debt Institutional term loan USPP Undrawn bank debt Green MTN 500 450 81 400 350 200 384 300 250 200 250 150 200 200 100 150 130 50 78 0 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 Weighted average debt maturity Bank debt / Non-
Slide 29: Debt management and gearing
Debt management and gearing Summary of debt facilities (as at 31 Dec 2017) Change in gearing and cost of debt (%) Secured Limit Drawn 65% 8.0% Balance sheet bank loans ($’000) ($’000) Maturity gearing 60% 7.5% Syndicated Facility target range Balance Sheet Gearing 55% 7.0% All-in cost of debt - Faci
Slide 30: Summary
Summary 5 Murray Rose Avenue, Sydney Olympic Park, NSW
Slide 31: Key takeaways
Key takeaways WWTrack record of delivery and experienced management team WWEmbedding sound sustainability practices in everything we do WWWell diversified portfolio WWStrong Securityholder support WWHigh levels of occupancy and long WALE WWWell diversified funding profile WWCommitment to maintaining
Slide 32: Appendices
Appendices 33-39 Richmond Road, Keswick, SA
Slide 33: Appendix 1: CBI Certificate
Appendix 1: CBI Certificate Certification This is to certify that the Growthpoint Properties Australia Limited Issued by Growthpoint Green Bond I Has met the criteria for certification by the Climate Bonds Standard Board on behalf of the Climate Bonds Initiative 09.04.18 Sean Kidney Chair of the Cli
Slide 34: Appendix 2: EY Assurance Statement
Appendix 2: EY Assurance Statement Growthpoint Properties Australia Green AMTN Investor Presentation | May 2018 34
Slide 35: Appendix 2: EY Assurance Statement (continued)
Appendix 2: EY Assurance Statement (continued) Growthpoint Properties Australia Green AMTN Investor Presentation | May 2018 35
Slide 36: Appendix 2: EY Assurance Statement (continued)
Appendix 2: EY Assurance Statement (continued) Growthpoint Properties Australia Green AMTN Investor Presentation | May 2018 36
Slide 37: Appendix 3: State of key office markets
Appendix 3: State of key office markets 4% of 15% of Growthpoint Growthpoint Portfolio Brisbane - CBD Brisbane - Fringe Portfolio (as at 31 December 2017) Vacancy 15.0% Vacancy 17.1% Prime Secondary Prime Secondary R $714 gross $559 gross R $543 gross $433 gross R Average face rent per sqm per annum
Slide 38: Appendix 4: State of key industrial markets
Appendix 4: State of key industrial markets (as at 31 December 2017) R Average face rent per sqm per annum I Indicative incentives Y Average core market yield 7% of Brisbane Growthpoint Portfolio Rents Rents 479,388 sqm* decreasing increasing / incentives / incentives Prime Secondary increasing Stab
Slide 39: Appendix 5: Summary financials
Appendix 5: Summary financials HY18 HY17 Change % Change Net property income and distributions from securities $'000 108,823 113,476 (4,653) (4.1%) Statutory accounting profit $'000 207,291 113,005 94,286 83.4% Statutory accounting profit per security ¢ 31.3 17.6 13.7 77.8% Funds From Operations (FF
Slide 40: Appendix 6: Financial position
Appendix 6: Financial position as at 31 December 2017 as at 30 June 2017 $’000 $’000 Assets Cash and cash equivalents 31,521 31,459 Investment properties 3,285,000 3,180,275 Other assets 83,432 116,638 Total assets 3,399,953 3,328,372 Liabilities Borrowings 1,237,186 1,299,380 Distributions payable
Slide 41: Appendix 7: Five year performance summary
Appendix 7: Five year performance summary As at 31 December 2017 2016 2015 2014 2013 Number of properties no. 56 59 57 51 49 Total value $m 3,285.0 3,194.7 2,611.5 2,233.6 1,800.8 Occupancy % 98 99 97 98 98 HY like-for-like value change $m / % of asset value 124.6 / 4.0 59.6 / 2.2 77.0 / 3.2 95.2 /
Slide 42: Appendix 8: Operating and capital expenses
Appendix 8: Operating and capital expenses Operating expenses 12 months to 12 months to 31 Dec 17 31 Dec 16 Total operating expenses $'000 13,066 11,198 Expected to Average gross assets value $'000 3,295,858 2,915,574 remain around 0.40% Operating expenses to average gross assets % 0.40 0.38 based o
Slide 43: Interest rate hedging and fixed interest
Appendix 9: Interest rate hedging and fixed interest Weighted average fixed debt (as at 31 Dec 2017) Weighted average fixed • The weighted average hedging Time Fixed Face value debt (term) maturity of interest rate swaps at Maturity date to maturity rate of Swap Interest Rate Swaps (IRS) 6.0yrs 31 D
Slide 44: Appendix 10: Leasing completed since 30 June 2017
Appendix 10: Leasing completed since 30 June 2017 Leases completed in HY18 Term Annual rent NLA Car Address Sector Tenant Start date (yrs) increases (%) (sqm) Parks A1, 32 Cordelia Street South Brisbane QLD Office Jacobs Group (Australia) Q4, FY17 1.0 n/a 1,311 11 6 Parkview Drive Sydney Olympic Par
Slide 45: Appendix 10: Leasing completed since 30 June 2017 (continued)
Appendix 10: Leasing completed since 30 June 2017 (continued) Leases completed since 31 December 2017 Term Annual rent NLA Car Address Sector Tenant Start date (yrs) increases (%) (sqm) Parks 10 Butler Boulevard Adelaide Airport SA Industrial Toll Transport Q3, FY18 4.0 Fixed 3.25% 8,461 92 Car Park
Slide 46: Appendix 11: Lease incentives
Appendix 11: Lease incentives Lease incentives for leasing completed in HY18 averaged 25% (26% office and 23% industrial). This includes fit-out, rent free, rental abatement and cash payments Average lease incentives (%) Financial impact of lease incentives and leasing costs¹ The impact of lease inc
Slide 47: Appendix 12: Portfolio NABERS and Energy ratings
Appendix 12: Portfolio NABERS and Energy ratings Refer over slide for individual NABERS Energy Star Ratings Green Star Ratings(stars) NABERS Water Star Ratings property details. (stars) as at 30 June (stars)1 as at 30 June as at 30 June 4.86 5.00 4.80 4.80 4.80 4.50 4.50 4.41 4.20 3.94 3.75 3.38 FY1
Slide 48: Appendix 12: Portfolio NABERS and Energy ratings (continued)
Appendix 12: Portfolio NABERS and Energy ratings (continued) Address Green Star NABERS energy NABERS water 75 Dorcas Street South Melbourne VIC – 109 Burwood Road Hawthorn VIC – Bldg 2, 572-576 Swan Street Richmond VIC – Bldg B, 211 Wellington Road1 Mulgrave VIC – – Bldgs 1 & 3, 572-576 Swan Street
Slide 49: Appendix 13: Strategy and FY18 objectives
Appendix 13: Strategy and FY18 objectives Primary objective: Increase distributions for Securityholders –– Achieve upgraded FY18 FFO and distribution guidance: Returns Disciplined Financial Growth –– FFO: at least 24.3 cps –– Distributions: 22.2 cps –– Continue to evaluate investment opportunities,
Slide 50: Appendix 14: 100% real property investment
Appendix 14: 100% real property investment Growthpoint is a 100% real property investment underpinned by four core principles: 1. 100% investment 2. Limited development risk 3. 100% of income 4. Internalised management in Australia from property All of the Group’s properties are The Group does not o
Slide 51: Appendix 15: Growthpoint Properties Limited - South Africa (GRT)
Appendix 15: Growthpoint Properties Limited - South Africa (GRT) Growthpoint Properties Limited of South Africa (“GRT”) owns 65.1% of Key Facts (as at 31 December 2017)1 the securities of Growthpoint (at 31 December 2017) and is its major Securityholder. Listing GRT is listed on the Johannesburg Sto
Slide 52: Appendix 16: Board of Directors
Appendix 16: Board of Directors Geoffrey Tomlinson (70) Timothy Collyer (49) Maxine Brenner (55) Estienne de Klerk (48) Independent Chairman (since 1 July Managing Director (since 12 July 2010) Independent Director (since 19 March Director (since 5 August 2009) 2014) and Director (since 1 September
Slide 53: Important information
Important information Disclaimer does not purport to be in compliance with Article 11 of Regulation Forward-looking statements including projections, indications or This presentation and its appendices (“Presentation”) is dated May 2018 S-X of the rules and regulations of the U.S. Securities and Exc
Slide 54: Contact details
Contact details: Daniel Colman – Investor Relations Manager Email: Daniel.Colman@growthpoint.com.au Phone: +61 401 617 167 Growthpoint Properties Australia Level 31, 35 Collins Street Melbourne VIC 3000 www.growthpoint.com.au 33-39 Richmond Road, Keswick, SA
Growthpoint Properties Australia — Debt Investor Presentation (May 2018) on 6ix