GPT 2013 INTERIM RESULT
AGENDA Business Performance Michael el C Cameron on Outlook CEO EO Financial Performance Mark F Fook ookes es CFO FO Capital Management Carm rmel H Houri rigan Portfolio Performance Head o of I Investme tment t Investment Management Mana nagement nt 2
2013 INTERIM RESULT Driving total returns Disciplined capital allocation Flexible and Hyper- opportunistic efficient team organisation 3
GPT A total return business Rigorous capital allocation Dynamic portfolio management Disciplined balance sheet with capacity NTA Change Development and FM to enhance returns Tot otal l Ret eturn > 9% 9% High occupancy and fixed rental increases Distribution Growth platforms to enhance earnings 100% of AFFO 1 “Jaws” and low MER Low gearing and active buy-back 4 (1) Adjusted Funds From Operations
ACQUISITION STRATEGY Security buy-back is our investment benchmark Disciplined consideration of market fundamentals Office Prime assets with robust total return Fund-throughs only with strong pre-leasing Prime assets with robust total return Industrial Fully activate existing land bank Profitable development opportunities Reposition and actively manage Retail Asset scrub De-risk long term performance 5
STRATEGY Five year strategy update The strategy will embrace: - Evolution not revolution - Capital allocation as the driver of total returns - Maximising the financial potential of Australian ‘core’ property - An organisation that’s flexible, opportunistic and not bound by industry convention - A frugal, entrepreneurial culture that will deliver on the aspirations of investors and tenants Further detail to be provided in October 2013 6
INTERIM RESULT HIGHLIGHTS An active start to 2013 Sale of Homemaker $300m Fortitude Valley A$100m Highpoint completed for Acquisition of Sale of Erina HKD issue expansion $100m 3 Figtree Drive Fair completed completed completed for $19m for $397m GWSCF raises $230m in new equity Jun Apr May Jan Feb Mar 2013 2013 2013 2013 2013 2013 Internalisation of A$243m USPP property management Issue completed of GWOF completed GWOF acquires 50% Sale of Homemaker Interest in 8 Exhibition Buy-back Aspley and Jindalee Street for $160m extended for completed for $92m 12 months $780m development of 161 Castlereagh St completed 7
2013 INTERIM RESULT SUMMARY Performance against key targets 2013 T 2013 Target et 30 30 June 2013 2013 Ou Outcom ome EPS (1) growth > 5% 6. 6.0% 0% On track 12 Month Total Return (2) > 9% 8. 8.6% 6% Below target Leading relative Total Securityholder Return (3) 10. 10.2% 2% Below target 8 (1) EPS defined as ROI (less distributions to exchangeable securities) per ordinary security (2) Total return is defined as DPS plus change in NTA for the 12 months to 30 June 2013 (3) Total securityholder return is defined as distributions received plus change in security price
2013 INTERIM RESULT SUMMARY 6.0% increase in earnings per security 6 months to 30 June ($m) 2013 2013 2012 Change Tot otal l Rea eali lised Oper ed Operating I Incom ome ( e (ROI) OI) 236. 236.5 227. 227.2 4.1% Valuation movements 31.6 122.2 Financial instruments marked to market and FX 8.3 (55.1) movements Other (1) (19.4) (18.8) A-IFRS n net et pr prof ofit 257.0 257. 275. 275.5 6.7% ROI per ordinary security (cents) (2) 12.7 12.0 6.0% Distribution per ordinary security (cents) 10.1 9.5 6.3% 9 (1) Other is principally amortisation of lease incentives and rent free, amortisation on intangibles expense and the relevant tax impact (2) ROI per ordinary security is post distribution on exchangeable securities
SEGMENT PERFORMANCE Management company moving to profitability 6 months to 30 June ($m) 2013 2013 2012 Change Impact of asset sales offset by comparable income growth of 1.5% Retail NOI 139.6 160.4 13.0% Contribution from 111 Eagle St offset Office NOI 73.1 68.0 7.5% by comparable income growth of -0.7% Logistics & Business Parks NOI 37.1 32.4 14.5% Impact of asset acquisitions and Fund Distributions 35.8 33.5 6.9% developments plus comparable income growth of 3.2% Asset I t Income me 285. 285.6 294. 294.3 Increased distributions from higher interest in GWSCF Management Company Fees 25.2 23.6 6.8% Management Expenses (29.5) (42.3) 30.3% Increase in Funds Management fees Tax Benefit/(Expense) (0.6) 2.1 Impact of Fit for Growth and other Ma Manage agement C Compan any (4.9) 9) (16. 16.6) optimisation initiatives Net Interest Expense (49.8) (59.2) 15.9% Reduced amount and cost of debt Non-Core Income 5.6 8.7 Realise sed O Oper erating I Incom ome (1) 236.5 236. 227.2 4.1% 227. 1) 10 (1) Realised Operating Income is pre distribution on exchangeable securities
MANAGEMENT EXPENSES 30% reduction in expenses $42.3m 6 months to 30 June ($m) 2013 2013 2012 Corporate Corporate Overheads 13.1 13.3 Costs $13.3m $29.5m Investment Management 3.2 4.1 Asset Management 4.7 10.4 Corporate Costs $13.1m Development Management 3.7 9.3 Portfolio Expenses $29.0m Funds Management 4.8 5.2 Portfolio Expenses Total Portfolio Expenses 16.4 29.0 $16.4m Tot otal l Managem emen ent Expen penses 29.5 29. 42.3 42. 2012 2013 11
CAPITAL MANAGEMENT Buy-back and distribution update GPT acquired an additional 25.2 Buy-back as at 30 June 2013 2013 million securities in the buy-back in Securities acquired 113.9m 2013 % of securities on issue 6.1% Buy-back to continue at levels Cost $368.6m accretive to earnings and NTA Average price paid $3.24 GPT pays out 80% of ROI which Average discount to NTA 14.0% equates to approximately 100% of AFFO Value created $50.4m GPT will move to FFO / AFFO in 2014 Distribution 2013 2013 2012 Tax deferred status to change to 6 months to 30 June industry norm Distribution (cps) 10.1 9.5 Proportion of ROI 80% 80% 12
CAPITAL MANAGEMENT Balance sheet demonstrates disciplined approach 30 J 30 Jun 31 Dec Change 2013 2013 2012 Net tangible assets per security $3.76 $3.73 0.8% Proceeds from asset Total borrowings $2,046m $2,144m 4.6% sales offset by security buy-back Gearing (1) 19.9% 21.7% 180bps Weighted average cost of debt 5.21% 5.08% 13 bps Higher rate, longer Weighted average term to maturity 6.6 years 5.4 years 1.2 years term debt secured Look through gearing (1) 21.9% 23.9% 200bps Interest cover ratio 5.4x 5.1x 0.3x Weighted average term of interest Increased hedging 6.4 years 2.4 years 4.0 years rate hedging term in 1H13 13 (1) Based on net debt
CAPITAL MANAGEMENT Significant progress on diversification and tenor Bank debt down to 49%, bonds increased to 51% of total facilities Tenor lengthened from 5.4 to 6.6 years as a result of issuing 12 and 15 year bonds in Hong Kong and USA Sources o es of debt bt Debt m t matu turity pro rofile Long & Lo g & CPI Bonds Flat t Facility 425 USPP 405 4% Expir irie ies 367 12% Domestic A$ millions Foreign bank debt 250 216 MTNs 196 35% 146 5% 100 85 75 50 Domestic MTNs 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H Foreign 30% bank debt 2013 2014 2015 2016 2017 2018 2019 2022 2025 2028 2029 Secured 10% bank debt 14 4%
INVESTMENT MANAGEMENT High occupancy and long WALE PORT RTFOLIO S SUMMA UMMARY RY GPT P Portfol olio D o Diver ersity Por ortfol olio o Com ompa parabl ble WALE LE Oc Occupa pancy WAC ACR LBP Si Size (1) Inco come 13% Gro rowth (2) 2) Retail $4.5 bn 1.5% 4.3 yrs 99.5% 6.03% Office $2.8 bn (0.7%) 5.6 yrs 95.2% 6.78% Office 34% LBP $1.0 bn 3.2% 5.4 yrs 98.5% 8.27% Retail Total $8.3 bn 0.9% 4.9 yrs 98.1% 6.53% 53% 15 (1) As at 30 June 2013 (2) Income for the six months to 30 June 2013 compared to the previous corresponding period
INVESTMENT MANAGEMENT 12 month portfolio total return of 8% Portfol olio o Total R Return Short term market 12 Mon 12 onths to 30 o 30 June 2013 2013 fundamentals weak across most sectors Retail Office LBP Investment Strong capital return (Inc. GWSCF Stake) (Inc. GWOF Stake) Portfolio Total Portfolio for office reflecting leasing success 3.1% 9.8% Retail impacted by 0.7% 9.1% 8.4% Charlestown and 1.4% 8.0% 0.8% 7.1% Dandenong 6.7% 6.6% 6.3% Income Return Capital Return Total Return 16 Note: Portfolio Total Return of 8.0% for assets held for the full 12 month period. Includes LBP land holdings.
INVESTMENT MANAGEMENT Strong total return linked to WALE Of Office e Tot otal R l Ret eturn vs vs WALE LE (1 (1) 18.0% 818 Bourke 16.0% (5.2 yrs, 15.9%) Melbourne Central Tower (5.1 yrs, 15.2%) 14.0% al Return 2 Park St 12.0% (5.3 yrs, 10.5%) Total R 10.0% Australia Square Portfolio (5.5 yrs, 11.1%) Farrer Place (5.6 yrs, 9.8%) 8.0% (3.0 yrs, 7.5%) 6.0% MLC Centre (3.8 yrs, 4.6%) 4.0% 2.0% 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 WALE Ye Year ars 30 30 June 2013 2013 17 Note: One One One Eagle Street excluded due to leases commencing over the period.
Recommend
More recommend
