Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — H1 2025 Earnings Presentation
58 slides from Growthpoint Properties Australia's earnings presentation, Feb 20, 2025
Slide 1: 1H25 results
Third-party funds: 13 Business Street, Yatala, QLD Growthpoint Properties Australia ASX: GOZ 1H25 results creating value beyond real estate 20 February 2025
Slide 2: Agenda
Agenda Speakers Overview Financial Direct Funds performance portfolio management 3 8 12 21 Sustainability Priorities Supplementary Ross Lees Dion Andrews Michael Green & outlook information Chief Executive Officer Chief Financial Officer Chief Investment & Managing Director Officer 24 27 32 Acknowle
Slide 3: Overview
Overview Ross Lees Chief Executive Officer & Managing Director Direct portfolio: 100 Skyring Terrace, Newstead, QLD
Slide 4: Growthpoint snapshot
Growthpoint snapshot 1 as at 31 December 2024 Growthpoint Properties Australia | AUM $5.4b Directly held Third party $4.1b | 50 assets $1.3b | 15 assets Industrial & logistics Office Retail AUM $1.6b | 29 assets AUM $2.9b | 29 assets AUM $0.9b | 7 assets 1. Pro forma for settlement of three Victoria
Slide 5: Our purpose, our vision, our strategy
Our purpose Creating value beyond real estate Why we exist Our vision To create sustainable value in everything we do, What we will accomplish together by being the forward-thinking, trusted partner of choice Our strategy Deliver growth through funds partnerships, How we turn our vision to reality u
Slide 6: 1H25 snapshot
1H25 snapshot 1H25 performance driven by strategic capital management and high-quality portfolio with momentum into 2H25 Financial performance Capital management Direct portfolio and funds management metrics Direct office Direct industrial Funds portfolio portfolio2 management FFO Distribution1 Pro
Slide 7: 1H25 strategic highlights & guidance
1H25 strategic 1H25 demonstrates momentum in executing strategic and highlights & guidance growth initiatives Portfolio Grow Efficient allocation Sustainable performance of capital future proofing • 100,058 sqm of industrial • Established the • Generated cash proceeds • Achieved 2024 GRESB leasing c
Slide 8: Financial performance
Financial performance Dion Andrews Chief Financial Officer Third-party funds: Cammeray Square, Cammeray, NSW
Slide 9: 1H25 financial results
1H25 financial results Resilient FFO performance and momentum in funds management Like-for-like Property FFO up 0.9% (ex. Components of FFO 1H25 1H24 % change lease surrender payments and divestments) Property FFO $m 141.7 145.4 (2.5) – Office (0.3%), Industrial 3.7% Funds management revenue $m 5.9
Slide 10: Gearing
Gearing Divestments – Net Capital recycling activity proceeds of GALP, the DXI reduced gearing through 1H25 stake sale and sale of 3 Millennium Court, Knoxfield, VIC reduced pro forma Proforma gearing1 Gearing movement gearing as at 31 December 2024 For the six months ended 31 December 2024 Target g
Slide 11: Capital management
Group pro forma debt maturity profile Capital as at 31 December 2024 ($m) management 707 Institutional term loan USPP Bank debt FY28 Sustainability linked loans Strategic capital management undrawn bank 162 (SLL) (bank debt) debt to repay ensures sufficient undrawn FY25 fixed loan 471 476 SLL (undra
Slide 12: Direct portfolio
Direct portfolio Michael Green Chief Investment Officer Direct portfolio: 1500 Ferntree Gully Road & 8 Henderson Road, Knoxfield, VIC
Slide 13: Direct property portfolio – snapshot
1 Direct property portfolio – snapshot Active management of high-quality portfolio and leasing 1H25 leasing: success has increased WALE and maintained high occupancy Office: 13,671 sqm or 3.3% of office portfolio income Geographic Total portfolio Occupancy WACR WALE Industrial: 100,058 sqm value sec
Slide 14: Direct portfolio – lease expiry
Direct portfolio – lease expiry Leasing track record: averaged c.162,000 sqm of portfolio leasing Long WALE portfolio and historical leasing success per year, or 14% of portfolio income, over the past 5 years provides secure income stream Weighted average lease expiry by total portfolio income, as a
Slide 15: Active portfolio management
Active portfolio management 13% average IRR across seven strategic Strategic divestments and partnerships leverage divestments in 1H25 the existing portfolio for growth and new funds SOLD Capital partnership: Divestment: six existing Growthpoint 3 Millennium Court industrial assets Knoxfield, VIC $1
Slide 16: Direct property portfolio – Office
Office portfolio Top ten tenants Direct property portfolio key metrics As at 31 December 2024 (by portfolio income) $2.6b – Office Portfolio value 12% 30 June 2024: $2.8b Quality office portfolio maintains strong occupancy and long WALE 92% 12% Occupancy 6% 30 June 2024: 92% 100% modern A-Grade port
Slide 17: 1H25 portfolio leasing – Office
1H25 portfolio leasing Focus on asset repositioning driving leasing success – Office Continued leasing success with high- c.30,000 sqm 65% Undergoing or completed of new leases in 1H25 for quality metro portfolio assets repositioning in CY24 repositioned space (by lettable area) Total leasing comple
Slide 18: Supply and demand in Office
Supply and demand in Office Persistent high construction costs is restricting supply while demand continues to increase Construction costs remain high, New supply is slowing allowing Continued increase in restricting future supply and demand to catch up demand since COVID-19 increasing demand pressu
Slide 19: Direct property portfolio – Industrial
Industrial portfolio Top ten tenants Direct property portfolio key metrics1 As at 31 December 2024 (by portfolio income) $1.4b – Industrial Portfolio value 42% 30 June 2024: $1.6b Increasing WALE, high occupancy in stable industrial assets 98% 9% Occupancy 7% 30 June 2024: 100% Modern logistics and
Slide 20: 1H25 portfolio leasing – Industrial
1H25 portfolio leasing Woolworths Distribution Centre expansions – maintaining trust in – Industrial long-term tenant partnerships Increased WALE provides stability and c.50,300 sqm $111m demonstrates long-term tenant demand Additional lettable area across two Invested into major expansions since 20
Slide 21: Funds Management
Funds Management Ross Lees Chief Executive Officer & Managing Director Third-Party Funds: 2 Constitution Avenue, Civic, ACT
Slide 22: Funds management – snapshot
Funds management – snapshot 1 Established funds management business, positioned to take advantage of opportunities in an improving market Funds primary sector by value 11 $1.3b $288m $34.4m Total co- Retail – 65% Unlisted funds AUM New AUM investment at 7 properties at 31-Dec-24 at 31-Dec-24 in 1H25
Slide 23: Funds management – transactions
Funds management New fund: Growthpoint Australia New fund: Growthpoint Canberra – transactions Logistics Partnership (GALP) Office Trust (GCOT) Recent transactions demonstrate funds growth momentum • Total $288 million new AUM created during the half1 2 Constitution Avenue, Canberra, ACT • Establish
Slide 24: Sustainability
Sustainability Ross Lees Chief Executive Officer & Managing Director Direct portfolio: 9-21 Kimpton Way, Altona, VIC
Slide 25: Sustainability performance
Sustainability performance Direct portfolio: 836 Wellington Street West Perth, WA Solar rooftop installation On track to achieve Net Zero Target by July 2025 commissioned in August 2024 GRESB performance Achieved our highest rating of 85/100, 5.2 stars exceeding the peer Energy rating 30 June 2024:
Slide 26: 1H25 sustainability actions
1H25 sustainability actions Continued progress to Net Zero Target, Net Zero Target and increased sustainability linked loans on track for achievement by 1 July 2025 Net Zero actions in place • Installation of 18 solar PV systems across eligible directly owned portfolio assets with total capacity of
Slide 27: Priorities & outlook
Priorities & outlook Ross Lees Chief Executive Officer & Managing Director Third-Party Funds: Rundle Place, Rundle Mall, SA
Slide 28: Key market drivers
Key market drivers Population growth and favourable market Australian population expected to grow by conditions underpins optimistic outlook 15% over next 10 years, driving demand across multiple asset classes Stabilising rate environment – with the market pricing Australia’s population New commerci
Slide 29: Pathway to growth
Pathway to growth Positioned to capitalise on Build scale in existing momentum asset classes Source and execute capital partnerships to grow • Build reputation for being a leader in Enhance capital existing asset classes position • Continue to deliver wholesale • Demonstrate capability through syndi
Slide 30: FY25 guidance
Direct portfolio: 599 Main North Road, Gepps Cross, SA FY25 guidance Guidance maintained as momentum builds FY25 FFO FY25 guidance distribution 22.3 - 23.1 cps guidance Guidance anticipates no significant 20.3 cps market movements or unforeseen circumstances occurring during the including 2.1 cps re
Slide 31: Questions
Thank you for joining us. Questions
Slide 32: Supplementary information
Supplementary information Financial Property information portfolio 33 43 Key market Additional metrics information 50 55 Third-party funds: Cammeray Square, Cammeray, NSW
Slide 33: Financial information
Third-party funds: 6 Kingston Park Court, Knoxfield, VIC Financial information
Slide 34: Financial performance
Financial performance FFO per security movement NTA2 per security movement $3.45 0.2 0.2 12.1 $0.02 $0.01 (0.3) (0.2) ($0.22) $3.21 ($0.05) 11.8 (0.2) 1H24 NPI1 Surrenders Funds Net Other 1H25 NTA Office Industrial Retained Other NTA FFO management borrowing FFO 30-Jun-24 revaluations revaluations c
Slide 35: Summary financials
Summary financials 1H25 1H24 Change % Change 1H25 1H24 Change % Change NPI1 $m 119.9 125.9 (6.0) (4.8) Office FFO $m 94.6 97.6 (3.0) (3.1) Like-for-like Property FFO $m 136.4 137.6 (1.2) (0.9) Industrial FFO $m 45.1 43.8 1.3 3.0 Fund management revenue $m 5.9 4.1 1.8 43.9 Distributions from Statutor
Slide 36: Reconciliation from statutory profit to FFO
Reconciliation from statutory profit to FFO 1H25 1H24 Change Change $m $m $m % Loss after tax (98.7) (120.4) 21.7 18.0 Adjustment for non-FFO items: - Straight line adjustment to property revenue (3.9) (5.4) 1.5 - Net loss in fair value of investment properties 152.8 198.0 (45.2) - Net gain in fair
Slide 37: Financial position
Financial position 1 31 December 2024 30 June 2024 $m $m Assets Cash and cash equivalents 54.0 42.2 Investment properties 4,115.0 4,503.7 Investment in securities and equity accounted investments 34.4 140.9 Intangible assets 6.8 7.2 Other assets 156.3 70.9 Total assets 4,366.5 4,764.9 Liabilities Bo
Slide 38: Additional financial information
Additional financial information Reconciliation of operating cashflow to FFO 1H25 1H24 Change $m $m $m Operating cashflow 55.6 74.5 (18.9) Lease incentives and leasing costs 33.5 15.5 18.0 Net (prepaid)/accrued operating activities (6.1) 1.2 (7.3) Net accrued capital expenditure 5.1 – 5.1 Provision
Slide 39: Lease incentives
Lease incentives Consolidated Statement of Profit and Loss 1H25 1H24 $m $m Property revenue (excluding incentives) 180.6 175.6 Lease incentives include fit out, rent free, Amortisation of tenant incentives (21.8) (19.5) rental abatement and cash payments. The Property revenue 158.8 156.1 tables on t
Slide 40: Capital expenses
Capital expenses Capital expenditure (Office) 1H25 1H24 Portfolio maintenance capex (Office) $m 17.6 12.2 Expected to average Average property asset value (Office) $m 2,708 3,039 0.3%-0.6% over the Capital expenditure to average property portfolio value (Office) % 0.65 0.40 medium term based on curr
Slide 41: Capital management
Capital management 2.8% 2.5 years 60%-100% Weighted average Weighted average Target fixed/hedged fixed/hedge maturity fixed debt rate debt 31-Dec-24 30-Jun-24 Carrying Carrying amount Fair value amount Fair value ($m) ($m) ($m) ($m) FY25 FY26 FY27 FY28 FY29 Total Current liabilities Cross currency i
Slide 42: Key debt metrics and changes during 1H25
Key debt metrics and changes during 1H25 31 December 2024 30 June 2024 Change Fixed debt maturity profile by Gross assets1 $m 4,366.5 4,765.0 (398.5) financial year Interest bearing liabilities1 $m 1,691.7 1,923.8 (232.1) Notional A$m Fixed rate (excluding margin) Total debt facilities $m 2,303.0 2,
Slide 43: Property portfolio
Direct portfolio: 75 Dorcas Street, South Melbourne, VIC Property portfolio
Slide 44: Direct portfolio summary
Direct portfolio 83% Sector diversity by value Industrial summary located on Eastern seaboard 35% Key portfolio metrics $4.1b Office 65% as at 31 December 2024 total portfolio value No. office properties Tenant use No. industrial properties by income 21% Logistics / distribution Queensland Office 29
Slide 45: Other portfolio metrics
Other portfolio metrics 31 December 2024 30 June 2024 Lease type Annual rent review type by income by income Number of assets 50 57 Gross Property portfolio value $4.1 billion $4.4 billion 6% Fixed over 4.00% 7% Number of tenants 167 170 Semi-gross CPI 13% 7% Portfolio occupancy 94% 95% Tenant reten
Slide 46: Office portfolio – top five assets
Office portfolio – top five assets (by value) 1 Charles Street, 75 Dorcas Street, 100 Skyring Terrace, Building 3, 570 Swan Street, 165-169 Thomas Street, Parramatta, New South Wales South Melbourne, Victoria Newstead, Queensland Richmond, Victoria Dandenong, Victoria Title Freehold Title Freehold T
Slide 47: Industrial portfolio – top five assets
Industrial portfolio – top five assets (by value) 70 Distribution Street, 20 Colquhoun Road, 599 Main North Road, 27-49 Lenore Drive, Hugh Edwards Dr & Tarlton Larapinta, Queensland Perth Airport, Western Australia Gepps Cross, South Australia Erskine Park, New South Wales Cres, Perth Airport, WA Ti
Slide 48: Top ten tenants – by income
Top ten tenants – by income Total portfolio % portfolio WALE Office tenants % portfolio WALE Industrial tenants % portfolio WALE as at 31 December 2024 income (yrs) as at 31 December 2024 income (yrs) as at 31 December 2024 income (yrs) Woolworths 12 8.7 Australian Comm. Government 12 3.1 Woolworths
Slide 49: Leases executed in 1H25
1H25 leases completed represent Average lease Leases executed in 1H25 8.1% of portfolio income term: 9.4 years Location Tenant Start date Term (yrs) NLA (sqm) New/renewal Office leases 104 Melbourne Street South Brisbane QLD MWE Hotels Aug-24 7.1 122 New 32 Cordelia Street South Brisbane QLD McNab A
Slide 50: Market drivers & metrics
Direct Portfolio: 27-49 Lenore Drive, Erskine Park, NSW Market drivers & metrics
Slide 51: Market drivers – interest rates and transaction volume
Market drivers – interest rates and transaction volume Stabilising rate environment Increasing confidence to deploy capital evidenced by – with the market expecting up to three investment volume increasing approximately 30% YOY interest rate reductions over CY25 Commercial real estate transaction va
Slide 52: Office face rent growth CY24
Office face rent growth CY24 Sydney Fringe -0.3% GOZ markets Other markets West Perth 0.2% 5.6% 1.3% Sydney South 0.2% Average face rent effective rent Norwest 1.4% growth over CY24 growth over Macquarie Park 1.7% in CY24 in GOZ North Sydney 1.7% GOZ markets markets Perth CBD 1.7% Sydney Olympic Par
Slide 53: Industrial market – gross take up
Industrial market – gross take up Industrial floorspace gross take-up across Australia per half year (m sqm) &(!!!!! &"% &"& &"! &!!!!!! $") $") $"# $"* $"( $"( $"' $"' $"' $(!!!!! $"% $"% $"% $"% $"% $"& $"& $"& $"! $!!!!!! !"# (!!!!! ! '+$' &+$( '+$( &+$* '+$* &+$# '+$# &+$) '+$) &+$, '+$, &+&! '+
Slide 54: Key market metrics
Key market metrics Prime Secondary % of GOZ Total Average face rent Average Average core Average face rent Average Average core Market portfolio vacancy per sqm / p.a. incentives market yield per sqm / p.a. incentives market yield Office markets Adelaide – CBD SA – 15.6% $622 gross 39% 6.75%-8.75% $
Slide 55: Additional information
Direct portfolio: 75 Dorcas Street, South Melbourne, VIC Additional information
Slide 56: Glossary
Glossary Term Definition Term Definition Term Definition ABS Australian Bureau of Statistics gearing Interest bearing liabilities less cash divided by total NPI Net property income plus distributions from equity ACT Australian Capital Territory, Australia assets less finance lease assets less intang
Slide 57: Important information
Important information This presentation has been prepared by Growthpoint Properties Australia Limited prove incorrect, there can be no assurance that actual outcomes for Growthpoint (ACN 124 093 901) in its personal capacity and as responsible entity of will not differ materially from statements mad
Slide 58: Contact us
Contact us Retail investors Computershare 1300 665 792 (within Australia) +61 (3) 9415 4366 (outside Australia) webqueries@computershare.com.au Institutional investors Alix Holston Head of Corporate Affairs and Investor Relations +61 418 312 837 investor.relations@growthpoint.com.au 2025 calendar. •
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