Goodman Group · ASX:GMG
Goodman — Goodman Property Trust — H1 FY2024 Earnings Presentation
34 slides from Goodman's earnings presentation, Nov 23, 2023
Slide 1: Every Step Counts – Interim Result 2024
GOODMAN PROPERTY TRUST INTERIM RESULT 2024 EVERY STEP COUNTS
Slide 2: Contents
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 CONTENTS PRESENTED BY: James Spence Chief Executive Officer Andy Eakin Chief Financial Officer 03 06 16 OVERVIEW INVESTMENT PORTFOLIO FINANCIAL RESULT 22 26 Unless otherwise indicated, all numerical data provided in this presentation is stated as at 30 Se
Slide 3: Overview
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 OVERVIEW 3
Slide 4: Targeted investment strategy continues to produce earnings growth
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | OVERVIEW Targeted investment strategy continues to produce earnings growth Structural drivers in the Auckland industrial market remain sound + The Auckland industrial market continues to outperform, with near zero vacancy for prime industrial space. + S
Slide 5: Year to date
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | OVERVIEW YEAR TO DATE Portfolio + Portfolio occupancy of 99.6% and WALT of 6.4 years + 93,561 sqm of stabilised leasing during the period, producing an average rental uplift of 27.1% + Underlying like-for-like net property income growth of 6.2% for the
Slide 6: Investment Portfolio
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 INVESTMENT PORTFOLIO 6
Slide 7: Property portfolio
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | INVESTMENT PORTFOLIO GMT’s urban logistics portfolio provides Property portfolio essential supply chain infrastructure, facilitating the efficient storage and distribution of goods and materials. PROPERTY PORTFOLIO $4.7bn NET LETTABLE AREA1 1.1m sqm OCC
Slide 8: Stabilised portfolio leasing
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | INVESTMENT PORTFOLIO Stabilised portfolio leasing LEASED IN FY24 RENTAL UPLIFT 93,561 sqm 27.1% CORE PORTFOLIO AVERAGE WAREHOUSE RATE1 AVERAGE LEASE UP PERIOD $199 psm 2.0 months AVERAGE NEW LEASE TERM AVERAGE INCENTIVE 7.3 years 2.6% 1 Weighted average
Slide 9: Rent reversion
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | INVESTMENT PORTFOLIO MARKET RENT & UNDER-RENTING Rent reversion Warehouse rent $psm Highbrook 151 +46 197 + Valuer assessed potential rent reversion to market is 22.8%1, Core excl. Highbrook 142 +48 190 which equates to under-renting of $48.6 million pe
Slide 10: Income & stability
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | INVESTMENT PORTFOLIO TOP 10 CUSTOMERS1 Income & stability total net lettable area (sqm) per customer, including subsidiary companies % of income New Zealand Post 12% Mainfreight 7% + Top 10 customers account for 39% of portfolio income1 DHL 4% + 65% of
Slide 11: Customer base
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | INVESTMENT PORTFOLIO Customer base CUSTOMER INDUSTRY EXPOSURE1 % of portfolio income + 217 customers across 167 buildings, with 78% focused on warehousing or distribution + In our recent survey of GMT customers, businesses were asked about their Aucklan
Slide 12: Development completions
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | INVESTMENT PORTFOLIO Development completions TOTAL PROJECT COST WALT NET LETTABLE AREA YIELD ON COST GREEN STAR BUILT TARGET $228.1m 16.4 years 61,451 sqm 5.3% 5 Star 12
Slide 13: Work in progress
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | INVESTMENT PORTFOLIO TOTAL PROJECT COST $324.5m NET LETTABLE AREA 68,013 sqm WALT 14.2 years YIELD ON ADDITIONAL COST 8.2% LEASED Work in progress 93% 13
Slide 14: Realising value from within
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | INVESTMENT PORTFOLIO Future value to be realised through redevelopment of the value-add portfolio over time. Focused on maintaining and growing cashflows from existing improvements, introducing future development optionality where possible. Penrose Indu
Slide 15: Preparing the pipeline
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | INVESTMENT PORTFOLIO Preparing the pipeline + High construction and financing costs continue to be a barrier to commencing new developments + The focus for GMT’s value add portfolio remains on maintaining and growing cashflows, introducing future develo
Slide 16: Financial Result
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 FINANCIAL RESULT 16
Slide 17: Financial highlights
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | FINANCIAL RESULT Financial highlights NET PROPERTY INCOME OPERATING EARNINGS BEFORE TAX1 $100.1m 13.5% increase in rental revenue $68.1m 5.9% increase on prior period UNDERLYING CASH EARNINGS2 DISTRIBUTIONS 3.75 cpu 6.5% growth in underlying earnings 3.
Slide 18: Net property income
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | FINANCIAL RESULT Net property NET PROPERTY INCOME income $m 105 100 +1.2 + Net property income increased by 100.1 $11.9 million to $100.1 million, a 13.5% +4.9 increase on the first half of FY23 95 + Income from developments, in addition to like-for-lik
Slide 19: Operating earnings
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | FINANCIAL RESULT Operating OPERATING EARNINGS AFTER TAX earnings $m 70 + Strong operating performance and a lower effective tax rate are reflected in 12.3% increase in operating -8.1 60 +11.9 earnings after tax +1.5 +1.4 61.3 + 13.5% increase in net pro
Slide 20: Cash earnings
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | FINANCIAL RESULT Cash earnings CASH EARNINGS $m 1H24 1H23 % change + Underlying cash earnings of 3.75 cents per unit are a 6.5% like-for-like Operating earnings before tax 68.1 64.3 5.9% increase on the first half of FY23 Income tax on operating earning
Slide 21: Portfolio valuation
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | FINANCIAL RESULT Portfolio VALUATION SUMMARY valuation $m Highbrook Business Park Valuation 2,169.8 Cap rate 5.5% Initial yield 4.6% WALT years 5.6 Occupancy 99% Net lettable area sqm 488,619 Savill Link 525.6 5.4% 4.5% 5.7 100% 138,826 + $226.5 million
Slide 22: Capital Management
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 CAPITAL MANAGEMENT 22
Slide 23: Interest
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | CAPITAL MANAGEMENT Interest BORROWING METRICS 30-Sep-23 31-Mar-23 + 73% hedged for the next 12 months; 12 month forward hedging level 73% 84% providing protection within the high Weighted average debt cost 4.7% 4.0% interest rate environment ICR covenan
Slide 24: Liquidity
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | CAPITAL MANAGEMENT Liquidity FUNDING METRICS 30-Sep-23 31-Mar-23 Non-bank funding ( % of drawn debt) 61% 74% + Liquidity and diversity of funding was Available liquidity $538 million $739 million extended through capital Weighted average debt term (draw
Slide 25: Gearing
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | CAPITAL MANAGEMENT Gearing LOAN TO VALUE RATIO Covenant maximum 50% + Reported LVR of 28.7% with fully committed LVR of 30.5%, significantly below covenant maximum of 50% 40% + Committed developments complete over periods to FY25 + Preferred through cyc
Slide 26: Summary & Outlook
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 SUMMARY & OUTLOOK 26
Slide 27: Moving forward
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | SUMMARY & OUTLOOK Moving forward Resilience within a challenging economic environment + The economic outlook is uncertain, with high interest rates and geopolitical activity likely to constrain business activity. + GMT continues to prove resilient with
Slide 28: Questions
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 QUESTIONS 28
Slide 29: Thank you
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 THANK YOU The information and opinions in this presentation were prepared by Goodman (NZ) Limited on behalf of Goodman Property Trust or one of its subsidiaries (GMT). GMT makes no representation or warranty as to the accuracy or completeness of the infor
Slide 30: Appendix
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 APPENDIX 30
Slide 31: Profit or loss
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | APPENDIX Profit or loss 31
Slide 32: Balance sheet
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | APPENDIX Balance sheet 32
Slide 33: Cash flows
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | APPENDIX Cash flows 33
Slide 34: Development programme
GOODMAN PROPERTY TRUST | INTERIM RESULT 2024 | APPENDIX Development programme Development Estate Lettable area (sqm) Completion date Leased NZ Post Rosedale Rosedale Estate 17,752 Mar-24 100% Mainfreight Savill Link South Savill Link 23,300 Oct-24 100% Cotton On Roma Road Estate 18,230 May-24 100% 6
Goodman Property Trust — H1 FY2024 Earnings Presentation on 6ix