Goodman Group · ASX:GMG
Goodman — Goodman Property Trust — Shareholder Meeting (July 2018)
35 slides from Goodman's shareholder meeting presentation, Jul 4, 2018
Slide 1: Annual Meeting 2018
Annual Meeting 2018 Goodman Property Trust
Slide 2: Meeting agenda
＋ Review the strategy and performance of the Trust ＋ Consider and vote on one ordinary resolution Meeting agenda - re-appointment of Leonie Freeman as an Independent Director 2
Slide 3: Board & executives
＋ Phil Pryke Non-executive Director ＋ Susan Paterson Independent Director Board & ＋ Peter Simmonds Independent Director executives ＋ Leonie Freeman Independent Director ＋ Andy Eakin Chief Financial Officer ＋ John Dakin Executive Director and Chief Executive Officer ＋ Keith Smith Chairman and Indepen
Slide 4: Trustee & advisors
＋ Trustee Covenant Trustee Services Limited ＋ Solicitors Russell McVeagh Trustee & advisors ＋ Auditor PricewaterhouseCoopers ＋ Tax advisors KPMG 4
Slide 5: Meeting formalities
＋ Notice of meeting properly given ＋ Quorum confirmed Meeting formalities 5
Slide 6: Overview
Overview NZ Post, Highbrook Business Park, East Tamaki 6
Slide 7: Strategic focus
＋ Development success and asset sales have transformed the portfolio Strategic ＋ Investment concentrated in the Auckland industrial focus sector ＋ $207.2 million profit before tax and strong balance sheet position ＋ Disciplined strategy that is focused on long-term growth 7
Slide 8: FY18 earnings
FY18 earnings $90.0 Cash earnings m 6.99 cpu Cash earnings per unit 6.65 cpu Cash distribution per unit Highbrook Interchange, East Tamaki 8
Slide 9: FY19 guidance
＋ Deleveraging will have an earnings impact while these funds are reinvested FY19 - cash earnings of around 7.0 cpu are forecast guidance - cash distributions of 6.65 cpu expected to be paid 9
Slide 10: Corporate reporting
＋ Expanded commentary encompassing - Health and safety Corporate - Sustainability reporting - Diversity Mundy Construction, Highbrook Business Park KiwiHarvest Central Park Corporate Centre 10 10
Slide 11: Financial results
Financial results Bayleys House, VXV Portfolio, Auckland 11
Slide 12: FY18 highlights
12 FY18 highlights $207.2 Profit before tax m $1.39 cpu Net tangible asset backing $106.3 Revaluation gain cpu 16.9 Total return % 12
Slide 13: FY18 asset disposals
FY18 $243.9m Asset Central Park Corporate Centre, Greenlane disposals Year to date $323.9m VXV Porfolio, Auckland Last 5 years $1.2b Millennium Centre, Greenlane
Slide 14: Balance sheet strength
Loan-to-value ratio (look-through basis, as at 31 March) 35.9% 34.2% 33.9% 30.6% 25.0% Balance -10.9% sheet 14.1% strength FY14 FY15 FY16 FY17 FY18 VXV Pro-forma Portfolio ＋ Loan to value ratio of just 25.0% after adjusting for contracted sales ＋ VXV Portfolio sale reduces pro-forma gearing to 14.1%
Slide 15: Treasury initiatives
Funding sources (drawn basis, 31 March 2018) USPP notes 19% Bank debt Treasury 32% initiatives Bonds 49% Excludes GMT’s 51% share of the WPH debt facility ＋ Two further issues of Goodman+Bonds - $100 million, 7 year fixed rate, 4.54% - $100 million, 5.5 year fixed rate, 4.0% ＋ GMT credit rating of B
Slide 16: Operating results
Operating results Gateway development, Highbrook Business Park, East Tamaki 16
Slide 17: Investment focus
＋ Development and asset sales have transformed the business over the last five years Investment ＋ GMT’s $2.2 billion portfolio is now 99% invested in the focus Auckland industrial market ＋ Focus reflects: - growth profile of New Zealand's gateway city - positive investment characteristics of industr
Slide 18: Gateway city
＋ Auckland is the commercial heart of the country ＋ Geographically constrained, largest property market Gateway city ＋ Economy is growing faster than other main centres ＋ Airport, port, rail and road infrastructure projects ＋ Population forecast to grow 1.5% pa to 2.3 million by 2043 18
Slide 19: Growth in e-commerce is driving demand for logistics space
Growth in e-commerce is driving demand for well-located and efficient logistics space CourierPost, Highbrook Business Park, East Tamaki 19
Slide 20: Industrial property
＋ Positive investment characteristics - short construction time frame Industrial - lower lifecycle costs property - smaller asset sizes and value - demand is responsive to economic growth - high land component allows for future changes of use 20
Slide 21: Total returns
MSCI - IPD Property Index (annualised total returns to 31 March 2018) Annualised Total Returns % 1 year 3 years 5 years 10 years 15 years Total Industrial 12.8 13.7 12.9 9.9 12.0 returns Office 12.0 10.7 11.1 7.5 11.0 Retail 7.5 9.6 9.9 7.7 11.1 All Property Index 10.5 11.2 11.2 8.2 11.3 ＋ Appraisal
Slide 22: Highbrook Business Park
Highbrook Business Park The Crossing 22
Slide 23: Highbrook Business Park
Highbrook Business Park Warehouse facilities 23
Slide 24: Highbrook Business Park
Highbrook Business Park DHL 24
Slide 25: Savill Link
Savill Link Rail connections Mainstream, Savill Link, Otahuhu Coda, Savill Link, Otahuhu 25
Slide 26: Development success
New projects $m (total project cost including land) 164.8 148.7 Development 98.2 108.8 97.0 success 54.1 FY14 FY15 FY16 FY17 FY18 FY19 Q1 ＋ 80% of the portfolio has been developed since 2004 ＋ $223 million of work in progress 26
Slide 27: Completed projects
COMPLETION May 2017 CSR The Gate Industry Park NLA (Build-to-lease) 4,937 sqm Completed projects COMPLETION Jun 2017 Beijer Highbrook Business Park NLA (Build-to-lease) 7,503 sqm COMPLETION Aug 2017 ACCO Highbrook Business Park NLA 6,402 sqm 27
Slide 28: Completed projects
COMPLETION Nov 2017 Coda Expansion NLA 7,354 sqm Savill Link Completed projects COMPLETION Dec 2017 AB Equipment NLA 2,919 sqm Highbrook Business Park (Build-to-lease) COMPLETION Mar 2018 Spicers Highbrook Business Park NLA 9,918 sqm
Slide 29: Auckland Estates
- AM f 1d Estate rk : art , Tamaki Estate : =f VABUEsde Penrose Industrial Estate @ : a\ PE 4 Highbrook Business Park
Slide 30: Asset diversity
Industrial weighting (on completion of contracted sales and commenced developments) 99.3% 84.4% 83.2% Asset 73.0% 75.0% diversity 72.0% FY14 FY15 FY16 FY17 FY18 Forecast ＋ Sales programme largely complete ＋ Development success continually improving portfolio - $672 million of new projects since FY14
Slide 31: Focused
＋ Asset sales have rebalanced the portfolio and deleveraged the balance sheet Focused ＋ Development programme has transformed the Trust ＋ GMT almost exclusively invested in the Auckland industrial market ＋ Continuation of current investment strategy to take advantage of growing demand for warehouse
Slide 32: Questions
Questions 32 Plytech, Highbrook Business Park, East Tamaki
Slide 33: Formal business
As an ordinary resolution, that, Unitholders approve the re-appointment of Leonie Freeman as an Independent Formal Director of the Manager. business The Board considers Leonie Freeman to be an Independent Director and unanimously recommend that Unitholders vote in favour of her re-appointment 33 33
Slide 34: Voting and close
＋ We will now proceed to a poll and conclude the meeting Voting ＋ The result will be announced to the NZX and close 34 34
Slide 35: Thank you
Thank you Highbrook Business Park, East Tamaki 35
Goodman Property Trust — Shareholder Meeting (July 2018) on 6ix