Gpt Group · ASX:GPT
Gpt — The GPT Group — FY2021 Earnings Presentation
40 slides from Gpt's earnings presentation, Feb 14, 2022
Slide 1: Annual Result 2021 Market Briefing
Agenda Market Briefing Annual Result 2021 14 February 2022
Slide 2: Acknowledgement of Traditional Custodians
The GPT Group acknowledges the Traditional Custodians of the lands on which our business and assets operate, and recognises their ongoing connection to land, waters and community. We pay our respects to First Nations Elders past, present and emerging. Agenda Annual Result 2021
Slide 3: Agenda
2021 Year in Review | Bob Johnston 4 Finance and Treasury | Anastasia Clarke 8 Office | Martin Ritchie 12 Logistics | Chris Davis 21 Retail | Chris Barnett 28 2022 Outlook | Bob Johnston 37 Agenda Agenda Annual Result 2021
Slide 4: 2021 Year in review
2021 Year in review » Strong momentum in 1H disrupted by Delta outbreak in 2H − Restrictions more severe than 2020 − Retail rent collections in 3Q fell to 63% of gross billings, recovering to 101% in 4Q − Omicron has been a setback to the recovery − Melbourne Central continues to be impacted by an i
Slide 5: Financial summary
2021 Annual Result Financial summary 28.82cents 23.2cents Funds From Operations Distribution per security, up 1.2% per security, up 3.1% $6.09 14.1% Net Tangible Assets Total Return1 per security, up 9.3% Investment portfolio Portfolio occupancy 97.7% Assets under management $26.9b Weighted average
Slide 6: Executing on strategic priorities
Executing on strategic priorities Our Priorities » Logistics portfolio expanded to $4.4b and now represents 27% of portfolio weighting, with development pipeline1 of $1.6b Expand and optimise the portfolio − $1.3b of acquisitions exchanged and development completions2 Extend capital partnerships − G
Slide 7: Leadership in ESG
Leadership in ESG Climate response Connection and community Disclosure and transparency Integrated approach » More carbon neutral building » Gender diversity of 50% achieved in » Independent verification and » Integrated risk management certified floor space than any other top quartile and 43% femal
Slide 8: Finance and Treasury
Agenda Finance and Treasury Annual Result 2021
Slide 9: Financial summary
Financial summary $1,422.8m $554.5m Statutory Net Profit After Tax Funds From Operations ($m) 2021 20201 Change Funds From Operations (FFO) 554.5 554.7 - Valuation increases/(decreases) 924.3 (712.5) Treasury marked to market and other items (56.0) (55.4) Net Profit / (Loss) After Tax 1,422.8 (213.2
Slide 10: Segment result
Segment result ($m) 2021 2020 Change Comments Reduction in COVID-19 allowances (2021: $62.9m, 2020: $83.5m) Retail 233.9 225.7 3.6% partially offset by normalisation of operating expenses and negative rent reversions. Cash collection 91% of gross billings Sale of Farrer Place in December 2020 ($28.3
Slide 11: Capital management
Capital management Key Statistics 2021 2020 Sources of Drawn Debt As at 31 December 2021 Net Tangible Assets per security $6.09 $5.57 Net Gearing 28.2% 23.2% Weighted average cost of debt 2.4% 3.1% CPI Bonds 2% Weighted average term to maturity 6.3 years 7.8 years Domestic bank debt 12% Interest rat
Slide 12: Office
Agenda Office Annual Result 2021
Slide 13: Office overview
Office overview $269.2m 11.2% Segment contribution Total Return down 4.5%, comparable Income Return growth of 2.0% of 4.7% 92.9% 4.77% Weighted Average Portfolio Occupancy, 94.8% excl. development Capitalisation Rate completions1 5.0years $4.5b+ Weighted Average Development Lease Expiry Pipeline3 To
Slide 14: Leasing momentum continues
Leasing momentum continues » 137,700sqm of signed leases across 119 transactions Office Occupancy by NLA at 31 December 2021 (%) 1 Prime Market GPT » 102 of 138 leasing agreements were for spaces under 1,000sqm » Small tenants, government and technology tenants the most active 98.9 97.9 » Gross Face
Slide 15: Future of work shapes our strategy
Future of work shapes our strategy » Identifying office space needs is challenging for our customers » Pre-existing trends have been accelerated by the pandemic Work anywhere technology and behaviour Lease flexibility and on-demand space Distinctive spaces help win the war for talent and earn the co
Slide 16: Leasing strategies
Leasing strategies GPT Lease Expiry Profile1 Sydney CBD Parramatta Melbourne CBD Brisbane CBD 13% 12% 11% 7% 5% (sqm by Ownership) Vacant 2022 2023 2024 2025 Total Office Portfolio GPT 18,700 38,900 35,100 31,500 11,500 290,900 GWOF 51,200 28,400 44,600 51,700 34,000 603,500 GPT + GWOF 69,800 67,200
Slide 17: Promoting the high quality of the GPT portfolio
Promoting the high quality of the GPT portfolio Prime assets located in the deepest market » Modern/recently refurbished lobbies with fresh and distinctive aesthetics » Amenity such as shared work/meeting spaces, cafes and end of trip facilities » High sustainability ratings of 5.8 star NABERS Energ
Slide 18: Focus on the customer to be Landlord of choice
Focus on the customer to be Landlord of choice Customer centricity achieved Net Promoter Score1 of +72 » Well resourced Leasing team in place » Increased resourcing of customer focused teams to offer high service » Hotel style concierge introduced at Queen & Collins, with wider rollout planned Embra
Slide 19: Growing through development
Growing through development » Delivered two developments in 2021 and pipeline opportunities of >$4.5b1 to grow portfolio and deliver enhanced returns » Seeking pre-commitment for Cockle Bay Park and 300 Lonsdale Street, before commencing development » Stage 2 DA lodged for Cockle Bay Park » GWOF’s e
Slide 20: Office outlook
Office outlook GPT portfolio is well located, presented and serviced » High quality, sustainable, modern assets » Customer service focus of on-site teams » Leasing team with demonstrated capability Income growth expected in 2022 » Average structured rent increases of 3.8% across 83% of office income
Slide 21: Logistics
Agenda Logistics Annual Result 2021
Slide 22: Logistics overview
Logistics overview $154.7m 25.1% Segment contribution up 11.0%, comparable Total Return growth of 1.4% 98.8% 4.11% Portfolio Weighted Average Occupancy Capitalisation Rate 6.5years $1.3b Weighted Average Completions and Lease Expiry acquisitions exchanged1 GPT Logistics growth in 2021 48% Developmen
Slide 23: Executing on growth strategy
Executing on growth strategy GPT Portfolio Growth 2017-2021 Strong growth delivered GPT Portfolio ($b) Total Return (%) » 2021 growth of $1.4b from developments, settled acquisitions and 5.0 25.1 30.0 valuation uplift 4.5 15.2 12.1 15.1 20.0 11.2 » 26% portfolio value CAGR with a Total Return of 15.
Slide 24: Completions and acquisitions exchanged of $1.3b
Completions and acquisitions exchanged of $1.3b $201m $669m Investment Acquisition Development Completions Investment Acquisitions $308m $121m Ascot Capital Portfolio (23 logistics assets nationally) Purchase Price $596.7m | 100% GPT Fund-through Acquisitions1 Land Acquisitions1 Development Completi
Slide 25: Quality portfolio and customer base
Quality portfolio and customer base » Portfolio expanded to 69 assets totalling 1.4 million sqm across Australia » High occupancy of 98.8% and long WALE of 6.5 years » Diverse base of 110+ customers with 75% income from ASX listed companies and multinationals » Sustainability investments including s
Slide 26: Logistics market
Logistics market Structural tailwinds driving tenant and investor demand » Focus on efficient movement of goods, inventory management and growth in e-commerce » Transport and Retail tenants continue to drive demand » Weight of investor demand underpinning valuations Supply/demand dynamics » 2021 eas
Slide 27: Development pipeline of $1.6b to capture future growth
Development pipeline of $1.6b to capture future growth » Landbank expanded across eastern seaboard growth corridors » Four projects due for completion in 2022, expect to commence additional projects including the first stage of the Yiribana Logistics Estate Estimated Timing Underway Pipeline Estimat
Slide 28: Retail
Agenda Retail Annual Result 2021
Slide 29: Retail overview
Retail overview $233.9m 4.8% Segment Contribution Total Return up 3.6% 99.1% 5.03% Portfolio Occupancy Weighted Average Capitalisation Rate Specialty 6.2% $9,313psm Total Specialty Sales Sales Growth Productivity1 Leasing Deals Specialty $psm Sales Growth 10.6% Completed up 38.9% 561 Agenda 1. Speci
Slide 30: Strong leasing momentum continues
Strong leasing momentum continues » Significant deal activity in 2021 » All key leasing metrics improved on December 2020 » All specialty leasing deals incorporate fixed base rents and annual increases 12 months 12 months to to Dec 2021 Dec 2020 Deals Completed 5 61 404 Portfolio Occupancy1 99.1% 98
Slide 31: Total Centre Sales Growth
Total Centre Sales Growth » Sales impacted in 2020 and 2021 from lockdown periods » 4Q 2021 impacted by extended restrictions in NSW during October » November and December 2021 exceeded prior year and have returned to pre-COVID levels Total Centre Sales Total Centre Sales – Fourth Quarter (Quarterly
Slide 32: Sales Growth by Category
Sales Growth by Category » Sales growth in 2021 despite longer lockdowns » Total Centre sales up 3.7% and Total Specialty sales up 6.2% − NSW down 4.5% impacted by 4 months of trading restrictions − Victoria up 17% reflecting return to in-store shopping post extended lockdowns Sales Growth by Catego
Slide 33: Melbourne Central | 2021 Highlights and Outlook
Melbourne Central | 2021 Highlights and Outlook 62 deals in 2021 | 25 new brands Australian first | New flagships | First to market » Strong retailer demand including Australian-first ‘Monopoly Dreams’ demonstrates conviction to the asset » Investment in flagship stores by new and existing on-trend
Slide 34: Highpoint | Driving retail performance in Melbourne's western growth corridor
Highpoint | Driving retail performance in Melbourne’s western growth corridor 125 deals in 2021 | 40 new brands Key flagships | International brands | First to market Mixed-Use Masterplan Approved » Mixed-use masterplan approved in December, allowing Highpoint to transform into an Urban Village loca
Slide 35: Rouse Hill | Enhancing our retail and mixed-use assets
Rouse Hill | Enhancing our retail and mixed-use assets 100% Occupied | Majors remix completed Mixed-Use Masterplan Approved MAT exceeding 2019 levels1 Indicative render of Masterplan – as at 2020 » Expansion expected to commence late 2022, delivering 10,500sqm of additional retail and ~220 residenti
Slide 36: Retail portfolio strategy and outlook
Retail portfolio strategy and outlook Optimise the portfolio and product offer » Premium assets driving strong leasing outcomes » Mixed-use opportunities to deliver long term growth Leading customer experiences » Continued investment in customer experiences − Solving the convenience conundrum − Cust
Slide 37: 2022 Outlook
Agenda 2022 Outlook Annual Result 2021
Slide 38: 2022 Outlook
2022 Outlook » Economic growth is forecast to accelerate as the disruption from the pandemic diminishes » Retail portfolio performance expected to recover quickly as community confidence lifts » Higher Office leasing volume will result in an increase in capital for lease incentives » Asset values an
Slide 39: Thank you for joining us
Agenda Thank you for joining us Annual Result 2021 Questions
Slide 40: Disclaimer
Disclaimer The information provided in this presentation has been prepared by The GPT Group comprising GPT RE Limited (ACN 107 426 504) AFSL (286511), as responsible entity of the General Property Trust, and GPT Management Holdings Limited (ACN 113 510 188). The information provided in this presenta