Slide 1: Goodman Group FY24 Results
GOODMAN GROUP 15 August 2024 FY24 RESULTS Goodman Business Park, Greater Tokyo, Japan
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER – This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 – This document contains certain “forward-looking statements”. The words “anticipate”, “believe”, 071), Goodman Funds Management Limited (ABN 48067 796 641; AFSL Number 223621) as the
Slide 3: Contents
CONTENTS SECTION 01 Highlights SECTION 02 Results overview SECTION 03 Operational performance 01 HIGHLIGHTS 02 RESULTS OVERVIEW SECTION 04 Outlook APPENDICES 1 Results analysis 2 Property investment 3 Development 4 Management 5 Capital management 3 GOODMAN GROUP 03 OPERATIONAL PERFORMANCE 04 OUTLOOK
Slide 4: Highlights
Artist’s impression – Lanceley Place, Sydney, Australia HIGHLIGHTS 4 GOODMAN GROUP FY24 RESULTS
Slide 5: Highlights
HIGHLIGHTS Goodman has reported a strong financial performance for FY24. The Group is benefitting from the successful execution of its strategy, and is $2,049M 14.0% OPERATING PROFIT FY24 EPS GROWTH well positioned to deliver essential infrastructure projects globally + Financial highlights + Goodma
Slide 6: Highlights
HIGHLIGHTS + Development – Work in progress (WIP)¹ of $13.0 billion with a development + The Group’s focus on enhancing asset value through alternative use and our development led strategy are $78.7BN TOTAL PORTFOLIO yield on cost (YOC) of 6.7% delivering returns for Securityholders – Commencements
Slide 7: Group and Partnership Highlights
GROUP AND PARTNERSHIP HIGHLIGHTS 98% 4.9% 2.7m 8.4% OWN OCCUPANCY NPI GROWTH SQUARE METRES LEASED GEARING High occupancy maintained at Like for like NPI growth at 4.9% Across the global portfolio equating to Headline gearing of 8.4%, 97.7% and WALE of 5.0 years $409 million of annual rental property
Slide 8: Results Overview
Goodman Commerce Center Eastvale, Greater Los Angeles, USA RESULTS OVERVIEW 8 GOODMAN GROUP FY24 RESULTS
Slide 9: Results Overview
RESULTS OVERVIEW FY23 FY24 + Cash aligned operating profit of $2,049.4 million up 15% on FY23 Operating profit ($M) 1,783.2 2,049.4 + Statutory loss of $98.9 million Statutory accounting profit / (loss) ($M) 1,559.9 (98.9) – Includes the Group's share of property revaluations, derivative and foreign
Slide 10: Profit and Loss: Income statement
PROFIT AND LOSS Income statement + Strong full year operating profit of $2,049.4 million FY23 FY24 – Property investment income up 7% to $567.1 million, with net equity investment, rent growth $M $M and development completions, offsetting disposals and transfers to developments – Management earnings
Slide 11: Balance Sheet
BALANCE SHEET + Group balance sheet remains well positioned with low financial leverage Balance sheet – Gearing at 8.4%4 (22.7%5 look-through). The Group’s Financial Risk Management policy range for AS AT AS AT gearing is 0-25%. Given our development activity and the consequential impact on long-ter
Slide 12: Group Liquidity Position
GROUP LIQUIDITY POSITION + Cash and available lines of credit (excluding Partnership debt and equity) of $3.8 billion as at 30 June 2024 – $1.8 billion in cash, $2.0 billion of availablelines – Issued €0.5 billion of new bonds and successfully tendered for €0.2 billion of the outstanding 2025 maturi
Slide 13: Operational Performance
OPERATIONAL PERFORMANCE 13 GOODMAN GROUP FY24 RESULTS
Slide 14: Property Investment
PROPERTY INVESTMENT + While the long-term structural demand drivers for logistics remain intact, demand has moderated. However, limited availability is supporting underlying property fundamentals in Property investments our markets, and we continue to maintain high occupancy and positive rental reve
Slide 15: Development
DEVELOPMENT + High quality development WIP stable at $13 billion Developments – Data centres represent 40% of current WIP FY23 FY24 – Large scale and higher value projects resulting in an average development period in WIP Development earnings ($M) 1,301.2 1,276.8 increasing to 25 months – Annualised
Slide 16: Significant Power Bank, Strong Data Centres
DATA CENTRES With a global power bank, proven development expertise and strong capital position Goodman is uniquely positioned to meet the growing digital infrastructure needs of the world’s largest technology companies. We continue to make strong progress on our data centre strategy that will enabl
Slide 17: Data Centres (Cont)
DATA CENTRES (CONT) Our strategically located global power bank continues GLOBAL POWERBANK to expand as we seek to reposition several of our 5.0 GW 40% UK / CONTINENTAL EUROPE industrial sites for higher and better use as data centres. 26% JAPAN Looking ahead, data centres are anticipated to be a ke
Slide 18: Our Global Network: Data Centre Power Bank
DATA CENTRE POWER BANK CONTINENTAL EUROPE/UK JAPAN NORTH 2.0 GW 1.3 GW AMERICA Power bank Power bank 0.2 GW Power bank HONG KONG SAR 0.5 GW Power bank OUR GLOBAL NETWORK AUSTRALIA/ POWER BANK STABILISED WIP NEW ZEALAND 5.0 GW 0.5 GW 0.4 GW 1.0 GW Power bank As at 30 June 2024.
Slide 19: Management
MANAGEMENT + External AUM of $70.2 billion – The decrease in external AUM is mainly due to lower valuations and the internalisation of Goodman Management Property Trust NZ (GMT) . We continuously review our assets, capital structures, and global capital allocation, and anticipate to undertake furthe
Slide 20: Total Portfolio
TOTAL PORTFOLIO HONG KONG CONTINENTAL CONTINENTAL UNITED UNITED AUSTRALIA AUSTRALIA HONG KONG SAR USA USA EUROPE EUROPE JAPAN CHINA CHINA JAPAN NEW NEW ZEALAND 4 ZEALAND4 KINGDOM KINGDOM BRAZIL BRAZIL Portfolio ($B) 30.5 13.1 9.5 8.4 5.1 5.0 4.1 2.7 0.3 Number of Partnerships 8 1 1 2 3 1 1 3 1 GMG c
Slide 21: Sustainability
SUSTAINABILITY¹ + Guided by our 2030 Sustainability Strategy, Goodman continues to integrate ESG into its business targets SUSTAINABLE PEOPLE, CORPORATE PROPERTIES CULTURE AND GOVENANCE AND AND PLACES COMMUNITY PERFORMANCE + Goodman’s global operations are on track to remain + A gender ratio of 43%
Slide 22: Outlook
Artist’s impression – Goodman FRA02, Frankfurt, Germany OUTLOOK 22 GOODMAN GROUP FY24 RESULTS
Slide 23: Outlook
OUTLOOK Goodman has positioned itself + The location of our assets are suited to a range of alternative uses, providing essential infrastructure to the + The world is in the early phases of the digital infrastructure evolution and the adoption of new as a major provider of essential large consumer m
Slide 24: Outlook and FY25 Forecast
OUTLOOK Artist’s impression – Tsukuba Tech Central, Tokyo, Japan + The outlook for the Group remains positive + FY25 Forecast – The active rotation of our capital will continue to be a key – We are positioned well heading into FY25, with a strong strategy to fund sustained earnings growth over the l
Slide 25: Appendix: Results Analysis
APPENDIX RESULTS ANALYSIS 25 GOODMAN GROUP FY24 RESULTS
Slide 26: Profit and Loss
PROFIT AND LOSS Total Property investment Management Development Operating expenses Non-operating items Category $M $M $M $M $M $M Gross property income 106.1 102.0 – – – 4.1 Management income 680.8 – 680.8 – – – Development income 1,196.5 – – 1,196.5 – – Net gain from fair value adjustments on inve
Slide 27: Reconciliation of Non-Operating Items
RECONCILIATION OF NON-OPERATING ITEMS Year ended 30 Total June 2024 Non-operating items in statutory income statement $M $M Property valuation related movements Net gain from fair value adjustments attributable to investment properties 6.0 Share of net gain from fair value adjustments attributable t
Slide 28: Financial Position
FINANCIAL POSITION Property Direct Assets investment Development Other Total As at 30 June 2024 $M $M $M $M $M Cash – – – 1,785.3 1,785.3 Receivables – – 189.3 223.2 412.5 Inventories 244.6 – 2,114.3 – 2,358.9 Investment properties 1,146.7 – 631.6 – 1,778.3 Investments accounted for using equity met
Slide 29: Net Tangible Asset Movement
NET TANGIBLE ASSET MOVEMENT 1. Calculated based on 1,899.2 million securities being closing securities on issue. 29 GOODMAN GROUP FY24 RESULTS
Slide 30: Property Valuations
PROPERTY VALUATIONS + Revaluation movements across the global portfolio for the full year totalled -$5.1 billion, with the Group’s share -$1.5¹ billion + Over the full year the market rent, cashflow assumptions and development completions have helped to offset part of the loss due to cap rate moveme
Slide 31: Appendix: Property Investment
Crossways Commercial Park, Dartford, UK APPENDIX PROPERTY INVESTMENT 31 GOODMAN GROUP FY24 RESULTS
Slide 32: Leasing
LEASING 2.7M 98% Goodman Industrial Goodman Center Industrial Lehigh Center Valley, Lehigh Easton, Valley, USAUSA Easton, SPACE LEASED OCCUPANCY Across the Partnerships: + 2.7 million sqm leased over the 12 months, equating to $409 million of annual property income¹ + High occupancy at 98%¹ . Leasin
Slide 33: Customers
CUSTOMERS Pioltello Logistics Centre, Milan, Italy 33 GOODMAN GROUP FY24 RESULTS
Slide 34: Direct Portfolio Detail
DIRECT PORTFOLIODETAIL + Long term strategic portfolio with potential for higher and better use, re-zoning and Port+ Business Park, Melbourne, Australia redevelopment + 16 properties with a total value of $1.4 billion + 94% occupancy and a weighted average lease expiry of 3.8 years + Average portfol
Slide 35: Appendix: Development
APPENDIX DEVELOPMENT 35 GOODMAN GROUP FY24 RESULTS
Slide 36: FY24 Developments
DEVELOPMENTS FY24 Developments As at 30 June 2024 Completions Commencements Work in progress Value ($B) 4.2 5.2 13.0 Area (m sqm) 1.3 1.9 4.0 Yield (%) 6.7 7.5 6.7 Committed (%) 99 67 63 Weighted average lease term (years) 8.8 9.1 12.9 Development for third parties or Partnerships (%) 88 54 71 Austr
Slide 37: Appendix: Management
APPENDIX MANAGEMENT 37 GOODMAN GROUP FY24 RESULTS
Slide 38: Global Platform
GLOBALPLATFORM THE AMERICAS CONTINENTAL $9.8BN EUROPE/UK Total portfolio $11.1BN ASIA 31 Total portfolio $23.2BN Properties 133 Total portfolio Properties 80 Properties TOTALPORTFOLIO $78.7BN PROPERTIES 436 AUSTRALIA/ COUNTRIES NEW ZEALAND 14 $34.6BN Total portfolio Current Goodman global presence.
Slide 39: Management – AUM
MANAGEMENT – AUM + The majority of Goodman’s assets reside in Partnerships – The Group manages 21 Partnerships with 52 investors who are represented on the Boards and Investment Committees independent of Goodman – Goodman maintains a 29% average equity cornerstone position in the Partnerships to sup
Slide 40: Appendix: Capital Management
Artist’s impression – Goodman Energy Park, Los Angeles, United States APPENDIX CAPITAL MANAGEMENT 40 GOODMAN GROUP FY24 RESULTS
Slide 41: Currency Mix
CURRENCYMIX CURRENCY MIX - OUTSTANDING DEBT CURRENCY MIX - INCLUDING THE IMPACT OF CAPITAL HEDGING FX SWAPS 54% USD 38% USD 35% EUR 25% EUR 16% HKD 9% JPY 8% GBP 1% CNY 2% CNY 7% NZD 5% JPY 41 GOODMAN GROUP FY24 RESULTS
Slide 42: Financial Risk Management
FINANCIAL RISK MANAGEMENT + The Group has a robust capital management framework, under its Financial Risk Management (FRM) policy. This provides: Goodman Utrecht Rochedale 1 Logistics Kunchi Motorway East Centre, China Estate, Maarssen, newBrisbane, retail Netherlands hub, Australia China – Stronger
Slide 43: Financial Risk Management (Cont)
FINANCIALRISK MANAGEMENT (CONT) + Interest rate payments are hedged to 79% over the next 12 months – Weighted average hedge rate of 3.23%¹,2,3 – NZD – hedge rate 2.89% – JPY – hedge rate 0.57% – HKD – hedge rate 2.07% – GBP – hedge rate 2.33% – Euro – hedge rate 3.21%² – USD – hedge rate 4.33% + Wei
Slide 44: Financial Risk Management (Cont)
FINANCIALRISK MANAGEMENT (CONT) Foreign currency denominated balance sheet hedging maturity profile Weighted average Weighted average Amount maturity exchange rate Amount receivable1 payable1 NZ$ 2.9 years 1.0729 A$838.9m NZ$900.0m HK$ 3.1 years 5.3605 A$1,627.2m HK$8,840.0m US$ 2.9 years 0.7137 A$1
Slide 45: Exchange Rates
EXCHANGE RATES Statement of financial position – exchange rates as at 30 June 2024 Currency Exchange rate AUDGBP – 0.5274 (30 June 2023: 0.5249) AUDEUR – 0.6226 (30 June 2023: 0.6109) AUDHKD – 5.2081 (30 June 2023: 5.2235) AUDBRL – 3.7304 (30 June 2023: 3.1911) AUDNZD – 1.0947 (30 June 2023: 1.0871)
Slide 46: Thank You
THANK YOU For more information visit goodman.com Important Notice This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839) a