Gpt Group · ASX:GPT
Gpt — FY2002 Earnings Presentation
25 slides from Gpt's earnings presentation, December 2002
Slide 1: Annual Results 2002
GPT Annual Results 2002
Slide 2: Strategies
Strategies u Improving portfolio quality u Diversity in earnings u Leveraging core skills u Accessing capital cost effectively GPT
Slide 3: Growth Profile Enhanced
Growth Profile Enhanced December Year End 1999 2000 2001 2002 Distribution 19.1 19.3 19.7 20.4 (cents per unit) Earnings 18.86 19.30 19.70 20.41 (cents per unit) EPU Growth 2.5% 2.3% 2.1% 3.6% GPT
Slide 4: Financial Performance
Financial Performance Net operating income +6.0% Total assets $6.7 billion Total borrowings $1.36 billion Gearing 20.3% NTA per unit $2.60 GPT
Slide 5: Outlook for Growth
Outlook for Growth u Portfolios well positioned for growth u Developments underway – $620m commenced – $500m plus next 5 years u Balance sheet capacity u Growth initiatives GPT
Slide 6: Retail $3.3 billion (50%)
Retail $3.3 billion (50%) Nas ~ t Lage sae) = r al =e Oey ¥
Slide 7: Key Results: Retail
Key Results: Retail u Income up 12% u Portfolio in great shape to deliver growth – Total centre sales per sqm up 3.0% – Specialty sales per sqm up 3.3% – Average specialty base rents up 4% – Specialty occupancy costs at 14.1% – Arrears and vacancies very low GPT
Slide 8: Sales Productivity Benchmarks
$/sqm Pe nri th $0 $10,000 $12,000 $2,000 $4,000 $6,000 $8,000 Pla za Ch Er arl ina es Fa tow ir nS qu are Su ns hin eP laz Ma ca a rth ur Sq ua re W od W en ol Pla on za go ng Ce ntr al Performance Ca rlin gfo rd Ca Co su urt Me ari na lbo Sq urn ua eC re en tra lR eta Da il nd en on gP December 20
Slide 9: Occupancy Cost Benchmarks
Me lbo urn eC en tra lR 11.0% 13.0% 15.0% 17.0% 9.0% eta Da nd il en on Ch gP arl laz es a tow nS qu Ca are su ari na Sq ua re Pe nri th Pla Su za ns hin eP laz a Er ina Performance Ma Fa ca ir rth ur Sq ua Ca re rlin gfo rd Co urt W od W en ol Pla on za go ng Ce December 2002 ntr al GPT Retail Port
Slide 10: Homemaker Assets Deliver Growth
Homemaker Assets Deliver Growth u Outperformance over acquisition forecasts u Occupancy 99% u Rental growth 9.9% at review opportunity u Acquisitions (Fortitude Valley, Moorabbin) u Value $341m (10% of Retail Portfolio) GPT
Slide 11: Retail Developments
Retail Developments u Complete – Sunshine Plaza ($20m) u Underway – Floreat Forum ($46m) – Erina Fair ($105m) – Melbourne Central ($226.5m) u Masterplanning – Penrith Plaza – Macarthur Square – Wollongong Central – Charlestown Square GPT
Slide 12: Retail Portfolio Outlook
Retail Portfolio Outlook u Growth – Operating metrics in great shape – Access to renewals in key assets – Homemaker assets delivering – Full ownership of Penrith Plaza u Accretive development program – Benefits flowing from 2003 u Continue to review portfolio GPT
Slide 13: Office $2.5 billion (39%)
Office $2.5 billion (39%)
Slide 14: Key Results: Office
Key Results: Office u Income up over 13% u Occupancy remains high – Continued success in re-leasing u Strong lease expiry profile – Average lease term 5.3 years u National Building well progressed – Construction underway GPT – Yield of 8%
Slide 15: Ongoing Leasing Success
Ongoing Leasing Success 50% 45.3% 45% 40% 35% u 75,000 sqm to 31 Dec 2002 30% % of Area 25% 20% 13.1% 13.3% u Average lease term 5.3 years 15% 10.3% 9.3% 10% 5.6% 5% 3.2% 0% Vacant 2003 2004 2005 2006 2007 Beyond Office Lease Expiry Profile at 31 Dec 2002 GPT
Slide 16: Office Portfolio Outlook
Office Portfolio Outlook u Quality assets, strong covenants u Leveraged to Sydney market u Minimal vacancy – majority in Sydney u Balanced expiry profile u Limited near term expiries GPT
Slide 17: Hotel/Tourism $500 million (8%)
Hotel/Tourism $500 million (8%)
Slide 18: International Visitor Arrivals
International Visitor Arrivals Inbound Forecast (post events) 8,000 Actual Forecast 7,000 Sep 11 Visitors (000) 6,000 5,000 4,000 Gulf War 3,000 Asian Crisis 2,000 1,000 0 91 93 94 98 07 10 92 95 96 97 99 00 01 02 03 04 05 06 08 09 19 19 19 19 20 20 19 19 19 19 19 20 20 20 20 20 20 20 20 20 Years So
Slide 19: Key Results: Hotel/Tourism
Key Results: Hotel/Tourism u Ayers Rock Resort – Occupancy -2.0% – Room Rate +9.0% – GPT Income +8.0% u Four Points by Sheraton Sydney – Occupancy +11.0% – Room Rate -1.0% – GPT Income +17.0% u Well positioned for growth post refurbishment/expansion GPT
Slide 20: Industrial/Business Park $200 million (3%)
Industrial/ Business Park $200 million (3%)
Slide 21: Key Results: Industrial/Business Park
Key Results: Industrial/Business Park u Income up u Acquisition of 7 Parkview Drive u Developments – Quad 2 complete – Stage 1 Camellia complete (API) – Stage 2 Camellia, 43% pre-leased – Quad 3 (DA approved) – Quad 4 (future opportunity) u Average lease expiry 5.6 years u Occupancy 95% GPT
Slide 22: Capital Management
Capital Management u Total Assets $6.7 billion u Gearing of 20.3% (limit 40%) u Termination of DRP u Borrowings − Maturities from within one month to 2029 − 92% hedged − Current effective interest rate 6.16% − Average duration 4.8 years u S&P ratings (Long term: A+, Short term: A-1) u Continue to ac
Slide 23: On Track for Continued Growth
On Track for Continued Growth u Earnings growth at 3.6% u Portfolios well positioned u Low debt u Confident of ability to continue to deliver earnings growth GPT
Slide 24: GPT
GPT
Slide 25: Appendix: Office Portfolio Snapshot
Appendix: Office Portfolio Snapshot Offices Occ Term Passing/ Market/ Value (%) m2 m 2* (per m2)** Australia Square (50%) 96.1 1.9 589 520 6,800 HSBC Centre 95.4 3.1 419 424 5,400 MLC Centre (50%) 99.2 5.9 633 627 8,200 Tattersalls 57.6 1.9 487 445 4,700 Melbourne Central 99.5 4.5 416 401 4,400 530