Gpt Group · ASX:GPT
Gpt — H1 2005 Earnings Presentation
34 slides from Gpt's earnings presentation, Aug 4, 2005
Slide 1: 2005 Mid Year Results Presentation
2005 MID YEAR RESULTS PRESENTATION |
Slide 2: Agenda
AGENDA Mid Year financial results Internalisation update Joint Venture update Portfolio update Group strategy
Slide 3: New Reporting Standards
NEW REPORTING STANDARDS Application of A-IFRS results in less transparency Cash flows and distributions unchanged, income statement materially different Increases volatility in income statement
Slide 4: Result Reconciliation
RESULT RECONCILIATION Reconciliation of distributable amount Actuals ($m) Profit after tax (A-IFRS) 66.2 Plus Finance Costs 205.5 Internalisation costs and Other 44.3 Less Fair Value and Revenue Adjustments (76.4) Net gain on disposal of properties (9.3) Equals Amounts payable to securityholders 230
Slide 5: Strong Operating Performance
STRONG OPERATING PERFORMANCE 2002 2003 2004 2005** (6 mths) Distribution (cps) 20.4 21.2 22.0 11.4 Growth 3.5% 3.9% 3.8% 4.6% Earnings (cps) 20.4 21.6 21.3 11.4 Underlying growth* 3.6% 3.1% 3.1% 3.0% NTA per security $2.60 $2.73 $3.02 $3.03 1 Yr Return 12.8% 8.2% 33.6% 11.2% * Excludes the impact of
Slide 6: Transition Update
TRANSITION UPDATE Internalisation Management team established in MLC Centre 6 June Continuity of management All senior roles filled (existing GPT team) General Manager, JV appointed Systems/ premises in place Transaction costs in line with forecasts Transition of retail centres/business 15 August Re
Slide 7: Structure
Te TT, iS STRUCTURE
Slide 8: lone
Wu ke <5 aa lone a5 er Of on co 2 3 a o £ fo 3 S £ oO & i be consolidated from 30 June, Voyages w *Note
Slide 9: GPT Board
GPT BOARD Board comprised of 8 members Peter Joseph OAM (Chair) Eric Goodwin Malcolm Latham AM Ken Moss Brian Norris Elizabeth Nosworthy AO Tan Martin (new) Nic Lyons (new) Committees Audit & Risk Management Nomination and Remuneration Committee
Slide 10: Joint Venture: Asset Update
JOINT VENTURE: ASSET UPDATE $1.1 billion of seed assets acquired on 30 June A$450m capital committed Assets performing to expectations German Residential Portfolio Stable occupancy Strong capital flows into the sector Opportunities to recycle capital Prague Retail Soft opening March 2005 Vacancy red
Slide 11: Joint Venture Investment Strategy
JOINT VENTURE INVESTMENT STRATEGY Stable cashfiows, with strong covenants Leveraged to 75%, non recourse debt, hedged Locked in yield spread IRR on ordinary equity 15%, after tax Upside potential Cap rate compression (market, portfolio premium) Management ‘value add’ Exit Options Trading Securitisat
Slide 12: JV Pipeline
JV PIPELINE $1.1 billion assets acquired Extensive pipeline of opportunities Focussing on portfolios / assembling portfolios High level of involvement in portfolio investment strategies Approval processes / protocols agreed and understood Strong alignment between GPT and B&B Joint Venture target - $
Slide 13: Joint Venture / Operating Platform
JOINT VENTURE / OPERATING PLATFORM GPT Team General Manager, JV appointed Appointed Investment Manager, Europe Short Listed Investment Analyst Appointed GPT portfolio teams assisting where appropriate Joint Venture Committee 3 GPT and 3 Babcock & Brown appointments Operating processes / protocols es
Slide 14: GPT: Asset Breakdown
GPT: ASSET BREAKDOWN JV investment represents 5% total investment assets* Core Portfolio $8.7 billion Hotels Mplanned communities Industrial JV *At 30 June 2005 - excludes retail assets sold and includes equity investment in JV and acquisition of El Questro Resort
Slide 15: Retail
RETAIL
Slide 16: Key Results: Retail Portfolio
KEY RESULTS: RETAIL PORTFOLIO Income up 4% like with like (10.4% overall) Strong sales and operating results* Total centre MAT/sqm up 3.4% Specialty MAT/sqm up 6.5% Regional specialty sales/sqm at $9,520 Regional specialty occupancy costs at 14.5% Occupancy high and arrears low Vacancy less than 1%
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Slide 18: Melbourne Central
MELBOURNE CENTRAL
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Slide 20: Retail
Mf RETAIL
Slide 21: Retail development pipeline
~ id o E Q 2 v > v a a i= ° ind put wn ine Melbourne Penrith Plaza Central Macarthur Pipel Square Rouse Hill Regional Centre Charlestown Square
Slide 22: Office
OFFICE
Slide 23: Key Results: Office
KEY RESULTS: OFFICE Income up 0.4% like with like (4.3% overall) Occupancy increased to 94% 61,000 sqm leased to June 05 Terms agreed over 15,000 sqm Agreed terms with Rabo Australia for 9,000 sqm (DP3) Manageable lease expiry profile Average lease term 6.1 years Darling Park Stage 3 Completion ahea
Slide 24: Expiry Profile
EXPIRY PROFILE Office Lease Expiry Profile by Area 30 June 2005* Portfolio by Area 57.7% 60.0% 50.0% 40.0% ~ % 30.0%" 20.0% 10.0% 0.0%+ * Excludes Darling Park Stage 3
Slide 25: Hotel/Tourism
HOTEL/TOURISM
Slide 26: Strong Operating Results
STRONG OPERATING RESULTS Portfolio income up 13.5% like with like (46% overall) Ayers Rock Resort Revenue +13.1% Room Nights Sold +9,7% Room Rate +6.0% GPT Income +16.9% Four Points by Sheraton Sydney Revenue +4.1% Room Nights Sold (4.8%) Room Rate +9.9% GPT Income +3.1%
Slide 27: Recent Acquisitions
RECENT ACQUISITIONS Lodges Portfolio Revenue (5.3%) Room Nights Sold (7.4%) Room Rate +1.0% Portfolio successfully integrated Impacted by weak domestic conditions Portfolio enhanced with El Questro acquisition
Slide 28: Industrial/Business Park
INDUSTRIAL/ sem cays BUSINESS PARK oe
Slide 29: Key Results: Industrial/Business Park
KEY RESULTS: INDUSTRIAL/ BUSINESS PARK Income up 4.3% like with like (15.9% overall) High occupancy - 98.5% (incl. land leases) Long average lease term ~ 5.4 years Austrak, Somerton Coles Myer National Distribution Centre (74,700 sqm) Labelmakers (22,200 sqm) P&O Terminal lease Quad 4 and 5 Figtree
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Slide 31: Capital Management
CAPITAL MANAGEMENT Total assets $9.3 billion Gearing of 30.5% (limit 40%) Total borrowings $2.8 billion $2,320 million AUD 300 million Euro (AUD equivalent approx $480 million) Current effective interest rate 6.2% Strategy to extend duration $300m MTN issue 600m Euro facility established Note: Figur
Slide 32: GPT Strategy
GPT STRATEGY Core portfolio Ongoing active management to drive returns Expansion through acquisitions and developments Joint Venture Continued focus on converting pipeline assets, stable cashflows / locked in funding spreads Establishment of funds management platform GPT positioning Identify additio
Slide 33: In Summary
IN SUMMARY Core portfolio performance strong Smooth transition proceeding JV investment well progressed Growth opportunities domestically and offshore On track to deliver on strategy and forecasts
Slide 34: Questions
pe ee QUESTIONS