Growthpoint Properties Australia · ASX:GOZ
Growthpoint Properties Australia — FY2012 Earnings Presentation
28 slides from Growthpoint Properties Australia's earnings presentation, Aug 20, 2012
Slide 1: Annual Results Presentation Year Ended 30 June 2012
Growthpoint Properties Australia (ASX Code: GOZ) Annual Results Presentation Year Ended 30 June 2012 20 August 2012 Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409 70 Distribution Street, Larapinta, QLD
Slide 2: Contents
Contents Glossary & Disclaimer 1 Overview 2 Financial Results 3 Movements in Net Tangible Assets per Security 4 Debt & Capital Management 5-6 Comparative Returns 7 Growth in Security Price, Distributions, Market Capitalisation & Free Float 8 Office Portfolio 9-10 Industrial Portfolio 11-12 Developme
Slide 3: Glossary & Disclaimer
Glossary & Disclaimer IFRS International Financial Reporting Standards A-REIT Australian Real Estate Investment Trust Balance Sheet Gearing borrowings divided by total assets BILAT the Facility Agreement between GOZ and National Australia Bank dated 17 February 2012 cps cents per stapled security dp
Slide 4: Overview
Overview STRONG OPERATING • Statutory profit of $49.5 million; 13.5% above FY2011 PERFORMANCE • Distributable income of $57.7 million; 17.7 cps; 58.5% above FY2011 • Distributions paid and provided of $57.4 million; 17.6 cps - above guidance & 2.9% above FY2011 result • 21.6% total return year to 30
Slide 5: Financial Results
Financial Results FY2012 FY2011 Change % Change Statutory accounting profit ($'000) 49,487 43,373 6,114 14% Distributable income ($'000) 57,713 36,407 21,306 59% Distributions paid / payable ($'000) 57,383 36,480 20,903 57% Distributions per security (cents) 17.6 17.1 0.5 3% Payout ratio 99% 100% -1
Slide 6: Movements in Net Tangible Assets per Security
Movements in Net Tangible Assets per Security • Property revaluations added 10 cents to NTA or 3.2% over the year to 30 June 2012 • Movement in interest rate swaps reduced NTA by 13 cents over the year to 30 June 2012. Yield curve for swap valuations reached historical lows in June 2012. Swap valuat
Slide 7: Debt & Capital Management
Debt & Capital Management Debt Maturity Profile • Weighted average maturity of debt is 3.5 years as at 30 June 2012 Syndicated facility (SFA) 522-550 Wellington Road, Mulgrave, VIC • Increased facility by $105 million to $765 million, effective 1 Feb 2012 Pro forma at • Tranched facility into 3 tran
Slide 8: Debt & Capital Management (continued)
Debt & Capital Management (continued) • Swaps restructured to better match debt maturity and take advantage of low swap rates • During the year, the following hedge transactions occurred: — Effective 1 February 2012, two new 5 year $50 million swaps were executed at 4.15% per annum and 4.12% per ann
Slide 9: Comparative Returns
Comparative Returns • GOZ has outperformed most benchmarks over the last 6 months, 1 year and 3 year periods 33-39 Richmond Road, Keswick, SA • GOZ’s high distribution yield provides much of the total return • GOZ’s fixed annual rent increases and stable cost base contribute to a projected growing d
Slide 10: Growth in Security Price, Distributions, Market Capitalisation & Free Float
Growth in Security Price, Distributions, Market Capitalisation & Free Float1 38-40 Annandale Road, Tullamarine, VIC 1 In these figures, “GOZN” and “GOZNA” securities are valued at their issue price of $1.90 2 Date of transaction announcement Growthpoint Properties Australia Annual Results - Year End
Slide 11: Office Portfolio
Office Portfolio 30 Jun 20121 30 Jun 2011 Office portfolio % 49% 35% 33-39 Richmond Road, Keswick, SA Book value (million) $800.6 $431.8 Number of assets 14 8 WACR 8.3% 8.3% Weighted average discount rate 9.6% 9.6% Weighted average terminal yield 8.7% 8.7% WARR 3.6% 3.5% WALE 6.0 yrs 7.2 yrs Weighte
Slide 12: Office Portfolio (continued)
Office Portfolio (continued) % of % of The Rental Property Clock Major Tenant Office Rent Portfolio Rent 1 GE Capital Finance Australasia 14% 7% 2 Commomwealth of Australia 9% 5% 3 Sinclair Knight Merz 7% 4% 4 Energex 7% 3% 5 Runge Limited 4% 2% 6 Fox Sports 4% 2% 7 Downer Mining 4% 2% 8 Coffey Inte
Slide 13: Industrial Portfolio
Industrial Portfolio 30 Jun 2012 30 Jun 2011 Industrial portfolio % 51% 65% Book value (million) $834.2 $813.1 Number of assets 27 30 WACR 8.4% 8.6% Weighted average discount rate 9.8% 10.0% Weighted average terminal yield 8.7% 9.0% WARR 2.8% 2.8% WALE 8.5 yrs 8.9 yrs Weighted average building age 8
Slide 14: Industrial Portfolio (continued)
Industrial Portfolio (continued) % of % of Major Tenant Industrial Rent Portfolio Rent 1 Woolworths Limited 57% 28% 2 Coles Group Limited 10% 5% 3 Star Track Express 5% 3% 4 Fletcher Building (Laminex) 3% 1% 5 Willow Ware Australia 3% 1% 6 Paper Australia 2% 1% 7 The Reject Shop 2% 1% 8 ARB Corporat
Slide 15: Developments Update
Developments Update Energex, Nundah, QLD Eight level; 12,910m 2 plus 215 car parks; A Grade Description office building Developer/builder Property Solutions Group / Hutchinsons Major tenants Pre-committed to Energex and Powerlink WALE on completion 1 13.7 years % Complete 63% Forecast completion Pra
Slide 16: Significant Acquisitions for FY2012
Significant Acquisitions for FY2012 333 Ann Street CB1 & CB2, SW1 219-247 Pacific Highway 10-12 Mort Street 1 Brisbane South Brisbane Artarmon Canberra Acquired December 2011555 December 2011555 December 2011555 June 2012555 Price $109.95 million $96.84 million $82.69 million $55.80 million Lettable
Slide 17: Growthpoint Properties Limited (GRT) – South Africa
Growthpoint Properties Limited (GRT) – South Africa1 • GRT owns 64.5% of the securities of GOZ (at 20 August 2012) and is its major Key Facts securityholder Listing GRT is listed on the Johannesberg Stock Exchange (JSE) • GRT first invested in GOZ in September 2009 and has a holding valued at Rankin
Slide 18: Outlook
Outlook Existing portfolio • Focus on successful negotiation of upcoming lease expiries • Smooth integration of soon to be completed development assets • Execution of asset management strategies in relation to ongoing improvement of buildings’ green credentials • Investigation of potential expansion
Slide 19: Appendix i - Key Achievements
Appendix i - Key Achievements Strong financial returns l TSR of 21.6% 1 for FY2012 versus 11.0% 2 for the A-REIT sector l TSR over a 3 year period to June 2012 is 19.7% 1 per annum versus 12.2% 2 for the A-REIT sector l GOZ price has traded above NTA per security since January 2012 Portfolio diversi
Slide 20: Appendix i - Key Achievements (continued)
Appendix i - Key Achievements (continued) Successful equity raisings l GOZ has raised/issued $640.4 million 1 of equity in the last 3 years l Successful $102.6 million rights issue completed in July 2011 on the back of Rabinov Property Trust Takeover and a $166.4 million rights issue completed in Ja
Slide 21: Appendix ii - Financial Position
Appendix ii - Financial Position As at 30 Jun 2012 As at 30 Jun 2011 Assets ($'000) ($'000) Cash and cash equivalents 35,289 24,144 Investment properties 1 1,469,646 1,157,535 Other receivables 100,790 168 Other assets 1,357 8,263 Total assets 1,607,082 1,190,110 Liabilities Borrowings 732,456 667,2
Slide 22: Appendix iii - Distributable Income
Appendix iii - Distributable Income FY12 FY11 Change Change ($'000) ($'000) ($'000) % Property income 124,005 88,419 35,586 40% Property expenses (15,063) (9,217) (5,846) 63% Net property income 108,942 79,202 29,740 38% Interest and other income 4,677 3,029 1,648 54% Total operating income 113,619
Slide 23: Appendix iv - Office Property Market
Appendix iv - Office Property Market Office Supply – Capital City CBDs ('000 sqm) • National vacancy rate at 7.8% in Q2/2012 700 0.14 Forecast • Close to 500,000m2 to be supplied in 2012 600 0.12 3-year average forecast • Supply tapers off quickly in 2013 and 2014 (2012- 2014) = 8.0% 500 0.1 400 0.0
Slide 24: Appendix iv - Office Property Market (continued)
Appendix iv - Office Property Market (continued) Office Sales Australia (≥AUD 5.0 million) Worldpark, 33-39 Richmond Road, Keswick, SA • Sales of office buildings have “cooled”. Only one sale above $100 million in Q2, 2012 • In 2012 $2.5 billion in sales YTD • Offshore investors slowed, but will rem
Slide 25: Appendix v - Industrial Property Market
Appendix v - Industrial Property Market National Industrial Take-up • Whilst the annual industrial take-up was below the 10 year average in 2011 into 2012, supply of new stock has been limited • Pre-commitment lead demand with some limited “speculative development” coming into the market Source: Jon
Slide 26: Appendix v - Industrial Property Market (continued)
Appendix v - Industrial Property Market (continued) Average Prime Industrial Yields • Prime industrial yields stabilised in 2010 and have been maintained in the 8.0% to 9.0% range • Spread between bond rates and yield has opened up as AUS bond rates have fallen • Prime yields to be tested below 8.0%
Slide 27: Appendix v - Industrial Property Market (continued)
Appendix v - Industrial Property Market (continued) Forecast Rent Avg. Prime Net Growth (p.a.) Rent ($/m2) 2011-2021 134 Lillkar Road, Goulburn, NSW Melbourne South East 80 2.50% Melbourne West 69 3.05% Sydney South 147 2.55% Sydney Outer West 108 2.62% Brisbane 114 3.15% Perth 139 3.23% Adelaide 85
Slide 28: For more information contact us
For more information contact us at: Growthpoint Properties Australia Level 10, 379 Collins Street Melbourne VIC 3000 572-576 Swan Street, Richmond, VIC P: +61 3 8681 2900 F: +61 3 8681 2910 E: info@growthpoint.com.au Investor services line: 1800 260 453 www.growthpoint.com.au
Growthpoint Properties Australia — FY2012 Earnings Presentation on 6ix