GARDA Property Group · ASX:GDF
GARDA Property — GARDA Diversified Property Fund — H1 FY2019 Earnings Presentation
39 slides from GARDA Property's earnings presentation, Feb 20, 2019
Slide 1: Half Year Results Presentation
For personal use only HALF YEAR RESULTS PRESENTATION 20 FEBRUARY 2019 GARDA DIVERSIFIED PROPERTY FUND (ASX CODE: GDF) ARSN 104 391 273
Slide 2: Disclaimer
DISCLAIMER This presentation (Presentation) has been prepared on behalf of GARDA Capital Limited (ACN 095 039 366) (AFSL 246714) (GARDA) as responsible entity of the GARDA For personal use only Diversified Property Fund ARSN 104 391 273 (GDF or the Fund). The information and statements in this Prese
Slide 3: GDF at a Glance
GDF AT A GLANCE For personal use only $ 330 MILLION 1 $210 MILLION 99% 5.7 YEARS 3.3% $ 0.09/unit WEIGHTED AVERAGE OCCUPANCY 2 WALE2 RENT REVIEWS FY2019 Distribution FORECAST 32.2% $1.31 6.78% ALIGNED MANAGER WEIGHTED AVERAGE GARDA Capital LVR3 NTA Per Unit CAP RATE4 holds 13.82% of GDF units 1. Bas
Slide 4: Results - Overview
RESULTS - OVERVIEW For personal use only 31 DECEMBER 2018 31 DECEMBER 2017 ($,000) ($,000) Statutory Net Profit 12,870 4,740 Fair value movement of investment properties 593 274 Net loss / (gain) on fair value movement of derivative financial instrument 475 177 Incentives amortisation and rent strai
Slide 5: Highlights
HIGHLIGHTS For personal use only $8 MILLION LITIGATION $25 MILLION PL ACEMENT SETTLEMENT RECEIVED COMPLETED » S uccessful settlement of a litigation matter resulted in an $8.0 » The Fund completed a $25 million placement at $1.25 per unit in million payment being received by the Fund in December 201
Slide 6: Leasing Overview
LEASING OVERVIEW For personal use only » A number of new leases in Cairns has resulted in the occupancy of the building increasing to 98%. MURARRIE » The remaining vacant level (880m²) at Murarrie has been leased to Youi Insurance for a term of five years. This property is now 100% FULLY occupied wi
Slide 7: Capital Improvements Program
CAPITAL IMPROVEMENTS PROGRAM For personal use only BOTANICCA 9 MAINTENANCE CAPEX - CAPITAL ADDITIONS - CONSTRUCTION - $0.1 MILLION $3.9 MILLION $13.6 MILLION » Reinvestment into the properties continued during the financial year through the capital improvements program with $3.9 million deployed int
Slide 8: Capital Management
CAPITAL MANAGEMENT For personal use only KEY DEBT METRICS1 » The Fund completed a $25.0 million placement in October 2018. Total debt facilities $126.5 m » The Fund secured a new $7.853 million facility from St. George Bank in September 2018 following revaluation of the portfolio. Drawn debt $99.9 m
Slide 9: Balanced Returns
BALANCED RETURNS GDF DISTRIBUTIONS AND NTA For personal use only UPLIFT PER UNIT Distributions per unit » The Fund has delivered balanced returns consisting of both tax-advantaged income and NTA Increase capital growth. $0.200 $0.174 $0.170 » The Fund has outperformed the S&P/ASX 200 A-REIT index si
Slide 10: Performance Since IPO
PERFORMANCE SINCE IPO For personal use only GROWTH IN AUM 330 15% Upon Completion of 51% Botannica 9 CAP RATE (%) 284 8.90% 8.13% 7.37% 23% 6.78% 188 $ millions 154 140 IPO FY16 FY17 FY18 FY19 2015 2016 2017 2018 Since the initial public offer of GDF in July 2015 GARDA has: Increased assets under ma
Slide 11: Performance Since IPO
PERFORMANCE SINCE IPO WALE (YEARS) For personal use only 5.9 Increased the resilience of the portfolio 5.6 5.7 » WALE is now 5.7 years (up from 3.5 years) 4.1 » A more balanced sector diversification profile 3.5 » Now 68% / 32% office / industrial, from 95% / 5%. » Increased geographic diversificati
Slide 12: GDF v AREIT Peers
GDF v AREIT PEERS For personal use only FORECAST FY2019 DPU YIELD (%) WALE (YEARS) 7.2% 6.6% 6.5% 6.3% 5.8% 6.2 5.7% 5.7 5.3 5.24 4.7 4.3 CMA GDF CIP IDR GOZ IDR GDF GOZ CIP CMA PREMIUM/(DISCOUNT) TO NTA GEARING (%) 15.0% 37% 37% 8.5% 35% 35% 33% 7.1% 32% 3.8% GDF CIP IDR GOZ CMA GDF IDR CMA CIP GOZ
Slide 13: Current Projects: Brisbane Industrial
CURRENT PROJECTS For personal use only BRISBANE INDUSTRIAL
Slide 14: Brisbane Industrial
BRISBANE INDUSTRIAL For personal use only 1 Pinkenba 2 1 2 Lytton 3 Berrinba 4 5 6 Heathwood 5 Wacol 4 3 6 Progress Road, Wacol GARDA DIVERSIFIED PROPERTY FUND HALF YEAR RESULTS PRESENTATION 20 FEBRUARY 2019 | 14
Slide 15: Brisbane Industrial
BRISBANE INDUSTRIAL For personal use only » The majority of new A-grade speculative space has been absorbed. » Solid tenant demand for tenancies of 4,000m2 – 8,000m2 is being experienced, however tenant demand for tenancies of greater than 10,000m² is still soft. » Accordingly there is a strong mark
Slide 16: Berrinba Industrial Development
BERRINBA INDUSTRIAL DEVELOPMENT For personal use only » The Fund acquired an 11,940m² industrial site in November 2018 for $3.0 million. » 1-9 Huntress St, Berrinba is located within the established industrial estate ‘SouthWest 1 Enterprise Park’, approximately 23 kilometres south of the Brisbane CB
Slide 17: Wacol Industrial Development
WACOL INDUSTRIAL DEVELOPMENT For personal use only » The Fund has acquired a 4.1hectare site for $5.9 million and will settle the acquisition in May of this year. » The site is located on Progress Road, Wacol, a major dual lane arterial road that has just received an upgrade and widening and connect
Slide 18: Melbourne: Botanicca
For personal use only MELBOURNE BOTANICCA 9
Slide 19: Under Construction – Botanicca
UNDER CONSTRUCTION – BOTANICCA 9 For personal use only PROPERT Y OVERVIEW » The property will be a five level 7,175m2 A-Grade commercial office building designed to 5 Star NABERS rating (energy). » Floor plates range from 1,200m2 to 1,500m2. » Valuation reflects net rents of $450/m2 for office. PROP
Slide 20: Botanicca – Project Update
BOTANICCA 9 – PROJECT UPDATE For personal use only » Construction of the Botanicca 9 project is well advanced, with completion due in May 2019. » The major structural works have now been completed with all slab pours and roof being completed. » Lifting installation is underway and all other services
Slide 21: Melbourne City Fringe Market Overview
MELBOURNE CITY FRINGE MARKET OVERVIEW For personal use only FUTURE SUPPLY AND PRE-COMMITMENT 20,000 2019 2020 18,000 16,000 14,000 12,000 (m2) 10,000 8,000 6,000 4,000 2,000 Available 0 Pre Botanicca 9 9-11 Cremorne St 54 Wellington St 17 Harcourt Pde 600 Church St 57 Balmain St Botanicca 3 (Growthp
Slide 22: Outlook and Guidance
For personal use only OUTLOOK AND GUIDANCE
Slide 23: Objectives
OBJECTIVES For personal use only The Fund’s key objectives for H2FY19 include: » Oversee the completion of construction and leasing of Botanicca 9 which is due for completion in May 2019; » Lodge the development applicaton for the Wacol facility; » Commence construction of the Berrinba facility; » C
Slide 24: At Risk Income
AT RISK INCOME For personal use only » Minimal near term existing expiry. » In discussion with Grant Thornton and Kuehne and Nagel regarding FY2020 expiries. » Botanicca 9 is a key leasing outcome to be executed. » The project is currently under construction in one of the strongest performing and ti
Slide 25: FY2019 Outlook
FY2019 OUTLOOK For personal use only » GDF will continue to seek opportunities to grow AUM in lower incentivised markets. - G DF AUM increased by $95.8 million during FY18 and is expected to grow similarly during FY19. » GDF is specifically seeking: - Industrial assets in Brisbane; - C ommercial off
Slide 26: FY2019 Guidance
FY2019 GUIDANCE For personal use only » F Y2019 distribution guidance at $0.09 per unit paid in equal quarterly distributions. » E xpected tax advantaged income of approximately 70%. » A t current trading pricing of $1.36 per unit, reflects a distribution yield of 6.62%. » F ull year payout ratio fo
Slide 27: Appendix: Financial Information
APPENDIX 1 For personal use only FINANCIAL INFORMATION
Slide 28: Income Statement
INCOME STATEMENT For personal use only 31 DEC 2018 31 DEC 2017 » Net profit attributable to unitholders of $ 12.87 million, up 171% $000’S $000’S on the prior comparative period. Property revenue 20,435 9,797 » Increase in net profit largely attributable to an $8.0 million receipt following the succ
Slide 29: Funds From Operations
FUNDS FROM OPERATIONS For personal use only 31 DEC 2018 31 DEC 2017 » FFO increased by $0.93 million to $6.45 million, representing a $000’S $000’S 16.8% increase on the prior comparative period FFO of $5.52 Net profit/(loss) 12,870 4,740 million. » Total distributions increased compared to the prio
Slide 30: Balance Sheet
BALANCE SHEET For personal use only 31 DEC 2018 30 JUN 2018 » H1FY19 total assets increased to $319.5 million, representing a 9.9% increase on the 30 $000’S $000’S June 2018 balance of $290.6 million. Assets » Cash and cash equivalents increased by $6.5 million, largely attributable to the $8.0 Cash
Slide 31: GDF Portfolio
For personal use only GDF PORTFOLIO
Slide 32: $330m Portfolio Upon Completion
$330m PORTFOLIO UPON COMPLETION For personal use only PORTFOLIO VALUE (BY SECTOR) COMMERCIAL 68% INDUSTRIAL 32% PORTFOLIO VALUE (BY LOCATION) 44% 28% 15% 9% 4% 7-19 Lake Street, Cairns ($51.0m) 69-79 Diesel Drive, Mackay ($30.2m) 747 Lytton Road, Murarrie ($14.3m) 142 Benjamin Place, Lytton ($9.7m)
Slide 33: Property Portfolio
PROPERTY PORTFOLIO For personal use only INDEPENDENT PORTFOLIO PROPERTY PORTFOLIO TYPE CAP RATE (%) NLA (m2) WALE5 OCCUPANCY5 NABERS VALUATION¹ ($m) VALUE (%) 588 Swan Street, Richmond, VIC Office 62.5 2 5.75% 7,252 N/A N/A 5 19% 572-576 Swan Street, Richmond, Vic Office 52.3 5.75% 6,587 4.9 100% 5
Slide 34: Portfolio Summary – Property
PORTFOLIO SUMMARY – PROPERTY For personal use only 41 BIVOUAC PL ACE, WACOL , 70-82 MAIN BEACH ROAD, QLD PINKENBA , QLD Cap Rate 6.25% Occupancy 100% Cap Rate 7.4% Occupancy 100% Independent Valuation $35,250,000 WALE 9.5 years Independent Valuation $19,000,000 WALE 14.6 years Ownership interest 100
Slide 35: Portfolio Summary – Property
PORTFOLIO SUMMARY – PROPERTY For personal use only 69-79 DIESEL DRIVE, MACKAY, 142 BENJAMIN PL ACE, LY TTON, QLD QLD Cap Rate 7.50% Occupancy 100% Cap Rate 7.00% Occupancy 100% Independent Valuation $30,200,000 WALE 10.0 years Independent Valuation $9,700,000 WALE 1.2 years Ownership interest 100% T
Slide 36: Portfolio Summary – Property
PORTFOLIO SUMMARY – PROPERTY For personal use only 67 NOOSA STREET, 7-19 L AKE STREET, CAIRNS, QLD HEATHWOOD, QLD Cap Rate 7.4% Occupancy 100% Cap Rate 8.25% Occupancy 98% Independent Valuation $9,800,000 WALE 9.2 years Independent Valuation $51,000,000 WALE 3.2 years Ownership interest 100% Tenants
Slide 37: Portfolio Summary – Property
PORTFOLIO SUMMARY – PROPERTY For personal use only 572 - 576 SWAN STREET, 436 ELGAR ROAD, BOX HILL , VIC RICHMOND, VIC Cap Rate 5.75% Occupancy 100% Cap Rate 6.25% Occupancy 100% Independent Valuation $52,500,000 WALE 4.9 years Independent Valuation $29,000,000 WALE 3.9 years Ownership interest 100%
Slide 38: Portfolio Summary – Property
PORTFOLIO SUMMARY – PROPERTY For personal use only 747 LY TTON ROAD, MURARRIE, 154 VARSIT Y PDE, QLD GOLD COAST, QLD Cap Rate 8.00% Occupancy 100% Cap Rate 8.25% Occupancy 90% Independent Valuation $14,250,000 WALE 3.6 years Independent Valuation $14,000,000 WALE 2.9 years Ownership interest 100% Te
Slide 39: Garda Diversified Property Fund
For personal use only GARDA DIVERSIFIED PROPERTY FUND (ASX CODE: GDF)
GARDA Diversified Property Fund — H1 FY2019 Earnings Presentation on 6ix