Goodman Property Trust Annual Meeting 2020 1
Goodman Property Trust Annual Meeting 2020 Keith Smith Meeting agenda Chairman and Independent Director Review the operating performance of the Trust and + the strategy for a more challenging economic environment Consider and vote on one ordinary resolution + re-appointment of Susan Paterson as an Independent - Director 2
Goodman Property Trust Annual Meeting 2020 Keith Smith Questions and answers Chairman and Independent Director 332-013-351 You can send a question at any time, these will be addressed at the end of the presentations. To ask a question Click on the speech bubble icon 1 on the top centre of the page Type your question in the text 2 box and click the send arrow 3
Goodman Property Trust Annual Meeting 2020 Keith Smith Voting Chairman and Independent Director Online voting is available at anytime. 332-013-351 To cast a vote Click on the bar graph icon 1 on the far right of the page Click on either “For, Against or 2 Abstain” and it will change colour to orange to show your vote has been received 4
Goodman Property Trust Annual Meeting 2020 Board and executives Leonie Freeman Keith Smith Greg Goodman John Dakin Independent Director Chairman & Independent Director Non-executive Director Executive Director and CEO Phil Pryke Andy Eakin Susan Paterson Peter Simmonds Chief Financial Officer Independent Director Non-executive Director Independent Director 5
Goodman Property Trust Annual Meeting 2020 Keith Smith Advisors Chairman and Independent Director Trustee Covenant Trustee Services Limited + PricewaterhouseCoopers Auditor + 6
Goodman Property Trust Annual Meeting 2020 Keith Smith Meeting formalities Chairman and Independent Director Nominated Chairman + Notice of meeting properly given + Quorum confirmed + 7
Goodman Property Trust Annual Meeting 2020 Goodman Property Trust Annual Meeting 2020 Year in review $ 284.4 m Profit before tax $ 175 m New equity 100 % Auckland industrial weighting Gateway warehouses, Highbrook Business Park 8
Goodman Property Trust Annual Meeting 2020 Keith Smith COVID-19 impacts Chairman and Independent Director Health and safety of staff, customers and + contractors continued to be first priority Goodman classified as an essential business + Income receipts representing around 95% of rent + due over last four months has been paid Remain cautious of longer-term economic impacts + 9
Goodman Property Trust Annual Meeting 2020 Keith Smith Distribution policy Chairman and Independent Director Amended to ensure the business can continue to grow + sustainably Adopting a pay-out ratio of between 80% and 90% of + cash earnings 1 aligns distributions with the underlying cashflows from GMT’s stabilised portfolio Cash distributions of at least 5.3 cents per unit are + expected to be paid in FY21 1 Cash earnings is a non-GAAP financial measure that assesses underlying operating cashflows, after adjusting for borrowing costs and Manager’s base fee capitalised to land and expenditure related to building maintenance. 10
Goodman Property Trust Annual Meeting 2020 Financial overview Gateway warehouses, Highbrook Business Park 11
Goodman Property Trust Annual Meeting 2020 Andy Eakin Chief Financial Officer FY20 highlights $ 261.9 m $ 165.8 m 6.65 cpu Portfolio revaluation Profit after tax FY20 cash distribution $ 145.3 m 28.1 % 172.7 cpu Net tangible asset backing Total Unitholder Return 1 Net rental income 12 months to 31 March 2020 1 GMT’s stock market performance calculated on an accumulation basis, aligned with performance fee calculation. NCI Packaging, Savill Link
Goodman Property Trust Annual Meeting 2020 Andy Eakin Gearing and liquidity Chief Financial Officer $1.2 billion of asset sales since 2014 with more than $800 + Andy Eakin Chief Financial Officer million reinvested into new development projects Greater financial flexibility with $175 million of new equity, + raised at $2.10 per unit Committed gearing of just 20.6% + Refinancing of bank facilities provides almost $400 million of + liquidity 13
Goodman Property Trust Annual Meeting 2020 Andy Eakin Treasury initiatives Chief Financial Officer 96% of drawn debt from Bank debt + 4% non-bank sources USPP notes 32% Undrawn bank facilities of + almost $400 million GMT credit rating of BBB + reaffirmed with debt rated Bonds 64% BBB+ Funding sources shown on a drawn basis as at 31 March 2020 14
Goodman Property Trust Annual Meeting 2020 Operational review Westney Industry Park 15
Goodman Property Trust Annual Meeting 2020 John Dakin Investment strategy Chief Executive Officer Executive Director Industrial property plays a critical role in supply chains + Continued urbanisation and growth of e-commerce + contributing to increased demand for warehouse and logistics space GMT positioned to take advantage of these global trends + Auckland is the preferred investment market, commercial + centre of the country and its largest consumer market 16
Goodman Property Trust Annual Meeting 2020 Goodman Property Trust Annual Meeting 2020 Property portfolio $ 3.1 bn Value 99 % Occupancy 17
Goodman Property Trust Annual Meeting 2020 John Dakin Customer focus Chief Executive Officer Executive Director Portfolio focused on storage, + logistics and distribution Large proportion of customers’ + businesses were classified as essential throughout lockdown Mainfreight image Support was directed at the most + vulnerable businesses, those with limited financial capacity 18
Goodman Property Trust Annual Meeting 2020 Development programme Active Healthcare, Highbrook Business Park 19
Goodman Property Trust Annual Meeting 2020 John Dakin Completed developments Chief Executive Officer Executive Director El Kobar units Highbrook Business Park Estate March 2020 Completion 5,330 sqm NLA Hellmann Highbrook Business Park Estate December 2019 Completion 3,548 sqm NLA 20
Goodman Property Trust Annual Meeting 2020 John Dakin Completed developments Chief Executive Officer Executive Director Paramount Highbrook Business Park Estate December 2019 Completion 2,999 sqm NLA NZ Food Network Highbrook Business Park Estate October 2019 Completion 1,024 sqm NLA 21
Goodman Property Trust Annual Meeting 2020 Goodman Property Trust Annual Result 2020 NCI Packaging Savill Link 22
Goodman Property Trust Annual Meeting 2020 John Dakin Development progress Chief Executive Officer Executive Director Over 80% of the portfolio has been built since 2004 + Eleven new facilities completed in FY20 + Provides almost 35,000 sqm of high-quality space - Value on completion was $158.6 million, contributing - $22.5 million of fair value gains Projects are 100% leased with a weighted average - lease term of more than 10 years Around $100 million of work in progress + 23
Goodman Property Trust Annual Meeting 2020 Goodman Property Trust Annual Meeting 2020 Mt Wellington acquisitions Mt Wellington Estate
Goodman Property Trust Annual Meeting 2020 Goodman Property Trust Annual Meeting 2020 7,350 sqm OfficeMax Warehouse extension Highbrook 880 Panel, solar array 20 % Electrical demand Warehouse extension
Goodman Property Trust Annual Meeting 2020 John Dakin Sustainability - Carbon Chief Executive Officer Executive Director Green House Gas emissions + FY19 CDP rating of B- - Emissions inventory completed for FY20 - Independent audit assurance - Future targets + Carbon neutral business operations by 2025 - 100% renewable energy use by 2025 - 26
Goodman Property Trust Annual Result 2020 Goodman Foundation 1,250 Tonnes of food rescued 3.6 Million meals (equivalent)
Goodman Property Trust Annual Meeting 2020 John Dakin Business outlook Chief Executive Officer Executive Director COVID-19 is constraining economic growth globally + GMT’s investment strategy is focused on urban logistics + property in Auckland The Trust is uniquely placed to benefit from the growing + demand for distribution facilities close to consumers Market fundamentals remain strong with good levels of + customer demand GMT is a well capitalised and resilient business that will + continue to be managed prudently 28
Goodman Property Trust Annual Meeting 2020 Greg Goodman Goodman Group Chief Executive Officer Executive Director 394 Properties under management $49.2 bn Total assets under management As at 31 December 2019. 29
Goodman Property Trust Annual Meeting 2020 Questions Highbrook Business Park 30
Goodman Property Trust Annual Meeting 2020 Formal business Resolution 1: Re-appointment of Susan Paterson As an ordinary resolution, that Unitholders approve the re-appointment of Susan Paterson as an Independent Director of the Manager. Susan P an Pat ater erson Independent Director 31
Goodman Property Trust Annual Meeting 2020 Voting and close We will now close the poll and conclude the meeting + The result will be announced on the NZX + 32
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