Gpt Group · ASX:GPT
Gpt — The GPT Group — FY2018 Earnings Presentation
27 slides from Gpt's earnings presentation, Feb 11, 2019
Slide 1: 2018 Annual Result Market Briefing
2018 ANNUAL RESULT MARKET BRIEFING 11 February 2019
Slide 2: Agenda
SECTION SPEAKER SLIDE AGENDA 2018 Annual Result Highlights Bob Johnston 3 Financial Summary & Capital Management Anastasia Clarke 6 Retail Mark Fookes 10 Office & Logistics Matthew Faddy 16 Funds Management Nicholas Harris 23 Summary & Outlook Bob Johnston 26 Annual Result 2018
Slide 3: Our Vision and Focus
OUR VISION To be the most respected property company in Australia in the eyes of our Investors, People, A high quality Customers and portfolio of Communities Australian real estate in the best markets OUR FOCUS Focus on quality assets and markets that we believe will provide long term growth for our
Slide 4: 2018 Annual Result Financial Highlights
2018 Annual Result Financial Highlights Consistently delivering strong returns 3.5% 3.5% $5.58 15.8% FFO GROWTH DISTRIBUTION GROWTH NTA PER SECURITY TOTAL PER SECURITY PER SECURITY UP 10.7 PER CENT RETURN The GPT Group 2018 Annual Result 4
Slide 5: Progress on Strategic Priorities
Progress on Strategic Priorities Investment Portfolio Balance Sheet & Capital Management + Portfolio occupancy of 97.8% + Net gearing at 26.3% + Like for like income growth 3.8% + Interest rate hedging at 83% + Revaluation gains of $911 million + Credit ratings unchanged at A / A2 + Weighted Average
Slide 6: Finance & Treasury
FINANCE & TREASURY Annual Result 2018
Slide 7: Financial Summary
Financial Summary 12 MONTHS TO 31 DECEMBER ($ MILLION) 2018 2017 CHANGE $1,451.7M Funds From Operations (FFO) 574.6 554.2 3.7% STATUTORY NET PROFIT Valuation increases 910.7 717.7 AFTER TAX Treasury items marked to market (39.6) (2.9) Other items 6.0 (1.0) Net Profit After Tax (NPAT) 1,451.7 1,268.0
Slide 8: Segment Result
Segment Result 12 MONTHS TO 31 DECEMBER 2018 2017 ($ MILLION) Strong contribution from Melbourne Central, Charlestown and Retail 326.2 318.4 ▲ 2.4% Rouse Hill Office 268.7 248.9 ▲ 8.0% Acquisition of Eclipse Tower, plus strong contribution from MLC, 1 Farrer Place and Australia Square Logistics 109.
Slide 9: Capital Management
Capital Management KEY STATISTICS + Diversified sources of debt DEC 2018 JUN 2018 + Gearing policy of 25 – 35% Net tangible assets per security $5.58 $5.31 + Targeting ‘A-space’ credit ratings Net gearing 26.3% 24.7% Weighted average cost of debt 4.2% 4.3% Weighted average term to maturity 6.3 years
Slide 10: Retail
RETAIL Annual Result 2018
Slide 11: Retail Highlights
Retail Highlights 2.2% 3.6% 99.6% Retail Portfolio Quality & Exposure NT LIKE FOR LIKE TOTAL SPECIALTY PORTFOLIO QLD 6% INCOME GROWTH MAT GROWTH OCCUPANCY 9% NSW 41% 44% + $6.2 billion retail portfolio Key + Like for like income growth of 2.2% led by strong results VIC Outcomes from Charlestown, Mel
Slide 12: Retail Sales
Retail Sales Portfolio MAT Growth by Category 12.6% 11.4% 9.7% 3.6% 3.6% 7.3% 6.5% 6.1% 3.2% Total Specialty MAT Growth 2.4% 0.7% Specialties >400sqm Specialties <400sqm -1.1% -2.1% -2.4% 6.9% 2.5% -3.7% -6.6% Specialty Sales Productivity (<400sqm) -10.2% $ 11,460 2.5% General Retail Cinemas Tech &
Slide 13: Retail Leasing
Retail Leasing + High quality portfolio is well positioned with low vacancy + Introduction of new retail concepts and remixing to growth categories at Highpoint as part of the re-leasing program in 2018 and fixed increases of 4.7% achieved on deals completed in 2018 + Delivered positive leasing spre
Slide 14: Retail Development: Sunshine Plaza
Retail Development Sunshine Plaza Retail Offer Stage One + 40 retail brands new to the Sunshine + Opened fully leased Coast market including on 15 November 2018 a number of including 33 new international brands and specialty stores and a national flagship stores refurbished Myer + During first 6 wee
Slide 15: Retail Development
Retail Development Melbourne Central Rouse Hill Town Centre + Progressive enhancement of the existing asset | $50 million during 2019 + Proposed $170 million expansion, including additional 16,300sqm of retail and 2020 and 4,500sqm of commercial space + Proposed Retail Expansion | $70 million, appro
Slide 16: Office & Logistics
OFFICE & LOGISTICS Annual Result 2018
Slide 17: Office Highlights
Office Highlights 5.8% PORTFOLIO $ 598.5M 16.9% VALUATION TOTAL Office Portfolio Geographic Exposure LIKE FOR LIKE UPLIFT RETURN INCOME GROWTH Premium 54% + $5.9 billion office portfolio Key + Office valuation gains driven by Sydney assets, WACR of Sydney - 62% Outcomes 4.95% + Leases signed totalli
Slide 18: Office Valuation & Market Fundamentals
Office Valuation & Market Fundamentals Net Supply vs Vacancy Rate by Market + Valuation uplift for 12 months of $598.5 million for the Office portfolio, representing an increase of 11% sqm Net Supply (LHS) Vacancy Rate (RHS) Vacancy Rate - 10y Avg. 400,000 20% + Sydney experienced greatest valuation
Slide 19: Office Leasing
Office Leasing + 158,400sqm of signed leases with a further 19,400sqm terms agreed + Increased occupancy to 97.1% with limited vacancy in Melbourne + Renewals secured with Mills Oakley, Baker McKenzie, AusNet Services and Microsoft + New leases agreed with CUB, Westpac and NIB Customer Focus 2018 Le
Slide 20: Office Portfolio Growth
Office Portfolio Growth Eclipse Tower, 32 Smith, Parramatta 60 Station St, Parramatta + QBE pre-commitment across 13,600sqm, Acquisition Date September 2018 representing 51% of NLA Asset Area 25,700sqm + Target completion in late 2020 Purchase Price $277.6 million + Expected yield on cost of ~6.75%
Slide 21: Logistics Highlights
Logistics Highlights 2.8% PORTFOLIO $ 151.2M 15.2% VALUATION TOTAL Logistics Portfolio LIKE FOR LIKE UPLIFT RETURN INCOME GROWTH Geographic Exposure + $1.9 billion logistics portfolio Key + High portfolio occupancy of 97.2% and long WALE of 7.1 years Outcomes + 164,300 sqm of leases signed and 39,70
Slide 22: Logistics Portfolio Growth
Logistics Portfolio Growth + Three prime logistics assets acquired, totalling $102 million, in Sunshine, Derrimut and Truganina in Melbourne’s West + Replenishing the Logistics land bank through the acquisition of 8.9 hectares of land in Truganina with capacity to deliver 48,000sqm of GLA + Completi
Slide 23: Funds Management
FUNDS MANAGEMENT Annual Result 2018
Slide 24: Funds Management Highlights
Funds Management Highlights FUNDS MANAGEMENT 2018 2017 CHANGE $ 12.6B ASSETS UNDER 11.3% TOTAL 15.1% PROFIT FINANCIAL SUMMARY ($M) Segment Result 42.6 37.0 15.1% MANAGEMENT RETURN GROWTH + Funds Management business delivered a strong total AUM and EBIT Growth Key return of 11.3% for the full year (5
Slide 25: Fund Update
Fund Update • Achieved a 12.7% total return for the year to 31 December 2018 FUND TOTAL FUND RETURN GPT ASSETS INVESTMENT GPT • Leading its unlisted office fund peers over five, seven and ten 1 year 3 years Wholesale years GWOF $7.8b 12.7% 13.6% $1.5b Office Fund • Acquired 32 Flinders Street, Melbo
Slide 26: Summary & Outlook
Summary & Outlook ECONOMIC OUTLOOK SECTOR OUTLOOK GROUP OUTLOOK • Economic outlook has softened but expected to • Retail assets in strong catchments with a • Office and logistics sectors will continue to remain healthy compelling proposition will grow productivity outperform • Sydney & Melbourne ben
Slide 27: 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