Gpt Group · ASX:GPT
Gpt — The GPT Group — FY2019 Earnings Presentation
38 slides from Gpt's earnings presentation, Feb 10, 2020
Slide 1: 2019 Annual Result Presentation
10 February 2020 2019 Annual Result Presentation For personal use only GPT provides its 2019 Annual Result Presentation which is authorised for release by the GPT Group Board. -ENDS- For more information, please contact: INVESTORS MEDIA Brett Ward Grant Taylor Head of Investor Relations & Corporate
Slide 2: 2019 Annual Result Market Briefing
For personal use only 2019 Annual Result Market Briefing 10 February 2020
Slide 3: Acknowledgement of Traditional Custodians
The GPT Group For personal use only 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. Artwork created by Molly W
Slide 4: Agenda
For personal use only Agenda 4 2019 Annual Result Highlights | Bob Johnston 9 Financial Summary & Capital Management | Anastasia Clarke 13 Office & Logistics | Matthew Faddy 26 Retail | Chris Barnett 33 Funds Management | Nicholas Harris 36 Summary & Outlook | Bob Johnston Annual Result 2019
Slide 5: Our Strategic Focus
Our Strategic + Growing our Office & Logistics portfolio Delivering attractive + High weighting to NSW and VIC markets returns Focus + Increased the development pipeline to an For personal use only expected end value of approximately $5 billion1 5yr avg. Total + Total Assets Under Management of $25.
Slide 6: 2019 Financial Highlights
2019 Consistently delivering strong returns Annual For personal use only Result FINANCIAL 2.6% FFO GROWTH 4.0% DISTRIBUTION $ 5.80 8.7% NTA PER TOTAL HIGHLIGHTS PER SECURITY GROWTH PER SECURITY RETURN SECURITY UP 3.9 PER CENT Investment Portfolio Portfolio Revaluation $342.2M occupancy 96.5% gains L
Slide 7: Executing on strategy
Executing on strategy For personal use only Office & Retail Developments Darling Park Acquisition & Development Opportunity Expected end value of $800 million Expected end value, including Cockle Bay Park development, of >$1 billion1 Current + Darling Park 1&2 and Cockle Bay Wharf + 32 Smith Street,
Slide 8: Environmental Sustainability
Environmental Sustainability For personal use only The GPT Group | 2019 Annual Result | 10 February 2020 7
Slide 9: Social Responsibility
Social Responsibility For personal use only The GPT Group | 2019 Annual Result | 10 February 2020 8
Slide 10: Finance & Treasury
For personal use only Finance & Treasury Annual Result 2019 Artists impression – 550 Bourke Street and 181 Williams Street, Melbourne
Slide 11: Financial Summary
Financial Summary For personal use only 12 Months to 31 December ($ million) 2019 2018 Change Funds From Operations (FFO) 613.7 574.6 6.8% Valuation increases 342.2 910.7 $ 880M STATUTORY NET PROFIT Treasury instruments marked to market (82.7) (39.6) AFTER TAX Other items 6.8 6.0 Net Profit After Ta
Slide 12: Segment Result
Segment Result For personal use only 12 Months to 31 December 2019 2018 Change Comments ($ million) Strong comparable income growth of 6.2% driven by strong leasing outcomes and Office 276.3 268.7 ▲ 2.8% higher rents. Segment result was offset by reduced income post the sale of MLC Operations net in
Slide 13: Capital Management
Capital Management Domestic Foreign CPI Bonds bank debt bank 2% 2% debt Secured + Modest gearing of 22.1% For personal use only 9% bank debt + Successfully completed $867 million equity raising to Sources of 3% fund acquisition and growth opportunities + Increased liquidity to $1.4 billion Drawn Com
Slide 14: Office & Logistics
For personal use only Office & Logistics Annual Result 2019
Slide 15: Office Highlights
Office Highlights For personal use only Portfolio Size & Geographic Exposure 6.2% PORTFOLIO 10.0% 147,600sqm TOTAL PORTFOLIO LEASES LIKE FOR LIKE RETURN SIGNED Office Retail $6.3bn INCOME GROWTH (12 MONTHS) $6.1bn Sydney 59% Melbourne 31% Key Highlights Brisbane 10% + Portfolio occupancy of 98.3% up
Slide 16: Office Valuations & Market Fundamentals
Office Valuations & Market Fundamentals For personal use only + Office valuation gains in 12 months of $271.2 million, with market rental growth contributing over 50% of increase $271.2m PORTFOLIO VALUATION UPLIFT + Melbourne Central Tower together with Governor Phillip & Governor Macquarie Towers a
Slide 17: Office Leasing
Office Leasing For personal use only 147,600sqm 98.3% SIGNED LEASES PORTFOLIO Community & Amenity With an additional 29,400sqm of terms agreed OCCUPANCY¹ + Strong leasing outcomes achieved with 2020 and 2021 expiry reduced from 29% to 17% in the 12 months² Sustainability + WALE extended to 5.3 years
Slide 18: Office Acquisitions & Divestments
Office Acquisitions & Divestments For personal use only + Significant transaction activity in 2019, investing in high quality assets providing greater control for the Group + Acquired stake in Darling Park 1 & 2, Sydney, made up of two premium office assets and a harbourfront development opportunity
Slide 19: Office Portfolio Composition
Office Portfolio Composition For personal use only + Portfolio rebalancing towards newer, less capital 6.2% PORTFOLIO intensive assets and securing development opportunities for value creation + Consistent high returns delivered over past 5 years, LIKE FOR LIKE with average annual like for like grow
Slide 20: Office Development Pipeline
Office Development Pipeline For personal use only PHOTO FROM GROUND REQUESTED Construction Progress at 31 January 2020 Artists impression Artists impression 32 Smith Street, Parramatta + Construction progressing well, due for practical completion in late 2020 + Asset 64% leased¹ with QBE anchoring t
Slide 21: Office Development Pipeline
Office Development Pipeline For personal use only Artists impression of indicative building scale Artists impression Cockle Bay Park, Sydney Frame, 300 Lonsdale Street, Melbourne + International Design Competition for Cockle Bay Park is + Further enhance Melbourne Central as a dominant mixed use pre
Slide 22: Logistics Highlights
Logistics Highlights Portfolio Size & For personal use only Geographic Exposure 15.4% 12.1% 231,600sqm OPERATIONS TOTAL PORTFOLIO LEASES SIGNED Office $6.1bn Retail NET INCOME RETURN $6.3bn GROWTH (12 MONTHS) Sydney 68% Melbourne 24% Key Highlights Brisbane 8% + Portfolio occupancy of 95.7%¹ with lo
Slide 23: Logistics Leasing
Logistics Leasing For personal use only + Demonstration of active leasing strategies to drive value and lease future expiries, 231,600sqm 95.7% SIGNED LEASES PORTFOLIO with strong focus on customer relationships + New Truganina facility completed and fully leased 1 With an additional 27,500sqm of te
Slide 24: Logistics Portfolio Growth
Logistics Portfolio Growth For personal use only + Portfolio growth of $545 million during the year to $2.4 billion + Acquired five prime logistics facilities totalling $212 million in Sydney + Secured a 23,000sqm facility in Truganina, Melbourne for $42 million settling in 2020, pre-leased to an in
Slide 25: Logistics Market Context
Logistics Market Context For personal use only Other 14% + Australia population is projected to grow ~20% by 2030 Population + Population is expected to be increasingly urbanised, with Wholesale Trade Transport, Postal & Warehousing ~70% in capital cities 8% 37% Growth Eastern Seaboard Industrial Ta
Slide 26: Logistics Development Pipeline
Logistics Development Pipeline For personal use only + Land parcels secured in key growth corridors: + Truganina (Boundary Road), Melbourne: 32.8 hectare site secured on deferred settlement terms >550,000sqm PIPELINE CAPACITY + Truganina (Niton Drive), Melbourne: 14.9 hectare site forming part of Th
Slide 27: Retail
For personal use only Retail Annual Result 2019 Sunshine Plaza, Queensland
Slide 28: Retail Highlights
Retail Highlights For personal use only Portfolio Size & Geographic Exposure 1.2% PORTFOLIO 99.6% PORTFOLIO $ 11,667 SPECIALTY SALES Office LIKE FOR LIKE OCCUPANCY PRODUCTIVITY $6.1bn Retail INCOME GROWTH PER SQUARE METRE NSW 41% $6.3bn VIC 44% Key Highlights QLD 10% NT 5% + Retail segment FFO contr
Slide 29: Retail Sales
Retail Sales For personal use only SPECIALTY SALES PRODUCTIVITY (<400sqm) Specialty Sales Productivity by Category 11.1% MAT $psm growth $ 11,667per sqm (psm) 7.6% 5.8% 3.3% 2.1% 1.9% 2.3% 1.1% 0.5% TOTAL SPECIALITY SALES PRODUCTIVITY -0.7% GROWTH (PSM) -1.1% -2.0% -2.4% -6.5% 1.9% -7.0% Cinemas Lei
Slide 30: Retail Leasing
Retail Leasing New Dining For personal use only + 459 leasing deals completed introducing over 70 precincts delivered new retailers to the portfolio in 2019 + Strong retail demand reflected in high portfolio occupancy + Holdovers down from the half, and in-line with 2018 at 5.7% of specialty rent +
Slide 31: Retail Portfolio: Offer Responding to Customer Demand
Retail Portfolio Retail Offer that is Retail Shift – Total Specialties (5 Year CAGR 2014-2019) GLA Sales PSM Total Rent responding to SQM Growth Growth For personal use only customer demand Why Data? Dining 3.0% 5.3% Data driven culture – using digital technology and Health & Beauty 5.3% 7.6% data t
Slide 32: Retail Melbourne Central Development
Retail Melbourne Central Development For personal use only #1 MOST PRODUCTIVE SHOPPING CENTRE IN AUSTRALIA1 5.7% pa MARKET GROWTH FORECAST (2020-2029)2 Artists impression Artists impression + Approx. $70 million - 7,000sqm of retail, focused on entertainment, dining and leisure + Approval received f
Slide 33: Retail Rouse Hill Development
Retail Rouse Hill Development For personal use only 7.6% pa SALES PRODUCTIVITY GROWTH (2017-2019) 6.1% pa MARKET GROWTH FORECAST (2020-2029)1 Artists impression Artists impression + Approx. $200 million - 20,000sqm of retail and commercial space + Residential integrated within retail scheme and adja
Slide 34: Funds Management
For personal use only Funds Management Annual Result 2019 Darling Park, Sydney
Slide 35: Funds Management Highlights
Funds Management Highlights For personal use only Funds Management Financial Summary ($M) $ 13.3B ASSETS UNDER 5.6% AUM GROWTH 8.7% FFO Segment 2019 2018 CHANGE MANAGEMENT GROWTH Result 46.3 42.6 8.7% Key Highlights + GWSCF continued its asset recycling strategy with the sale of Norton 2010 2019 Pla
Slide 36: GWOF - $2 Billion Development Pipeline
GWOF - $2 Billion Development Pipeline For personal use only Artists impression Artists impression Artists impression Corner of George & Bathurst, Sydney Queen & Collins, Melbourne 51 Flinders Lane, Melbourne GWOF Indicative Timing GWOF Asset Ownership Spend share 2019 2020 2021 2022 2023 2024 2025
Slide 37: Summary & Outlook
Summary & Outlook For personal use only Market Outlook Group Outlook + Recovery in residential sector, low interest rates and + 2020 income growth underpinned by structured rental on-going infrastructure spend expected to support growth across the portfolio, high occupancy and lower economic growth
Slide 38: Disclaimer
Disclaimer For personal use only 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 pro