Growthpoint Properties Australia Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409 www.growthpoint.com.au space to thrive 2018 Annual Results Presentation For the year ended 30 June 2018 | 16 August 2018
Agenda Executive Management Team 1. FY18 Highlights 2. Opportunities and Performance 3. Financial Management Timothy Collyer Dion Andrews Managing Director Chief Financial Offjcer 4. Property Portfolio 5. Summary Michael Green Yien Hong* Chief Investment Offjcer General Counsel & Company Secretary Important information This presentation and its appendices (“Presentation”) is dated 16 August 2018 and has been prepared by Growthpoint Properties Australia Limited ACN 124 093 901 (both in its capacity as responsible entity of Growthpoint Properties Australia Trust ARSN 120 121 002 and in its own capacity). Units in Growthpoint Properties Australia Trust are stapled to shares in Growthpoint Properties Australia Limited and, together form Growthpoint Properties Australia (“Growthpoint”). By receiving this Presentation, you are *Yien has been appointed on a 12 month contract covering for Aaron Hockly, Chief agreeing to the restrictions and limitations outlined on slide 48. Refer to slide 48 for other important information. Operating Offjcer, who is on parental leave and expected to return in April 2019. 2 Growthpoint Properties Australia Full Year Results Presentation for the year ended 30 June 2018 | 16 August 2018
FY18 Highlights, Opportunities & Performance 5 Murray Rose Avenue, Sydney Olympic Park, NSW
Highlights for FY18 Securityholder returns Property n 25.0 cents in Funds From Operations n Net tangible assets increased 10.8% to $3.19 per security (FFO) per security n Like-for-like valuation uplift of $193.8 million, or n 22.2 cents in distributions per security 6.2% over FY18 n 22.3% Total Securityholder Return 1 over the n Cap rate compression of 28 bps to 6.25% 12 months to 30 June 2018 n 132,433 sqm of leasing completed 2 Signifjcant Transactions Opportunities n Acquisitions: $205.4 million 3 n Sell assets with underlying residential value n Divestments at premium to book value: n Continue to explore direct and listed property $90.8 million opportunities, as well as expansion of existing properties n New 19,300 sqm offjce development to begin in Richmond, Victoria Capital Management Sustainability n Lowered gearing to 33.9% 4 n NABERS energy rating across offjce portfolio increased to 4.6 stars n Maintained Weighted Average Debt Maturity at 5 years n Improved gender diversity (50% of employees female) 1. Source: UBS Investment Research. 2. Includes leasing completed post 30 June 2018. 3. Includes acquisition of 836 Wellington Street, West Perth, WA for $91.3 million, expected to settle in October 2018. 4. Gearing calculation changed during the period from interest bearing liabilities divided by total assets to interest bearing liabilities less cash divided by total assets less cash. This change brings Growthpoint’s gearing calculation more closely in line with industry peers. 4 Growthpoint Properties Australia Full Year Results Presentation for the year ended 30 June 2018 | 16 August 2018
Considered investment decisions in competitive direct market Market opportunities not limited to direct property acquisition Robust capital position well placed for future growth LISTED NEW RETAIL BIDDING ON MARKET DIRECT MARKET DIRECT BALANCE EQUITY MARKETS REVIEW PROPERTY SHEET CAPITAL INVESTMENTS 18.2% $91.3m $1.5bn Completed detailed review of retail market in May 2018 – Continue 33.9% Opportunities Good access to equity Stake in Industria REIT Inaugural investment to believe no investment reviewed in FY18 capital (ASX: IDR) into Perth offjce market in retail is correct strategy Gearing – reduced by t Supportive majority $0.8bn at this time 460bps, below bottom of Securityholder in ‘AAA’ target gearing range 8.3 yr Growthpoint Properties Opportunities rated WALE Limited (JSE code: GRT) Tenant bid on in FY18 $320m t GRT has a stated $137.3m internationalisation Undrawn debt strategy to increase Direct properties offshore EBITDA 5yrs contribution to 30% (from acquired in FY18 1 15%) WADM – maintained due to t Ongoing support from Portfolio opportunities to maximise value extension of near-term debt domestic and other facilities offshore institutional investors STRATEGIC INTERNAL DEVELOPMENT DIVESTMENTS OPPORTUNITIES Sell property with residential Pipeline of >$200m in development conversion upside and expansion opportunities, led by: Capacity to take advantage of the right opportunities 522-550 Wellington Road, Quads 2 & 3, Botanicca 3 development at Gepps Cross Expansion, SA Mulgrave, VIC Sydney Olympic Park, NSW Richmond, VIC 1. Includes acquisition of 836 Wellington Street, West Perth, WA for $91.3 million, expected to settle in October 2018. 5 Growthpoint Properties Australia Full Year Results Presentation for the year ended 30 June 2018 | 16 August 2018
Post-balance date acquisitions and planned divestments Perth offjce asset acquisition Two Sydney Olympic Park assets placed on market n Entered transaction documents for acquisition of 836 Wellington Street, West Perth, WA n Formal marketing for sale of 6 Parkview Drive and 102 Bennelong Parkway, ‘Quads 2 and 3’, n $91.3 million acquisition price on a market yield of 6.25%. Sydney Olympic Park, NSW has begun Settlement expected to occur in October 2018 n Substantial site area of 14,423 sqm n 8.3 1 year Weighted Average Lease Expiry (WALE) n Signifjcant residential development opportunity n 100% leased to Commonwealth of Australia (Department under the current review of the Sydney Olympic of Home Affairs) Park Authority (SOPA) Masterplan 2030 n 11,973 sqm over 6 fmoors with 138 secured car parks Growthpoint’s fjrst offjce investment in Perth following a long period of due diligence on Perth offjce property market which is showing clear signs of a recovery 1. Remaining lease term as at 1 October 2018 6 Growthpoint Properties Australia Full Year Results Presentation for the year ended 30 June 2018 | 16 August 2018
Planned developments and expansions to begin in FY19 Woolworths Botanicca 3, DC, Gepps Richmond, VIC Cross, SA n 19,300 sqm, A-grade n Negotiating with offjce building tenant regarding n Designed to achieve: $50 to $60 million expansion of – 5-star NABERS Gepps Cross energy rating – 5-star Green Star rating n Building contract ~$80 million n Development yield on cost of between 7.5% and 8.5% 1 n Accretive to FFO per security 2 assuming ~50% leasing success at practical completion n Practical completion expected in second half of 2020 1. Determined by leasing success. 2. FY18 pro forma basis. 7 Growthpoint Properties Australia Full Year Results Presentation for the year ended 30 June 2018 | 16 August 2018
Track record of strong returns n FY19 FFO guidance takes into account the West Perth acquisition to settle in October 2018, up to $110 million of asset sales expected to take place throughout FY19 and the Dividend Reinvestment Plan activated for the August 2018 distribution. Long-term growth in FFO and distributions (cps) Total Securityholder returns (%) 2 26.0 25.5 At least 22.3 25.0 24.6 4.0% 25.0 CAGR 24.0 3.9% 16.2 23.0 22.9 23.0 CAGR 22.2 13.2 21.8 22.0 21.5 12.2 11.8 10.0 21.0 20.5 20.2 19.7 20.0 19.0 19.0 FFO per security Distributions per security 18.0 1 FY14 FY15 FY16 FY17 FY18 FY19 1 year 3 years 5 years Growthpoint S&P/ASX 300 A-REIT accumulation index 1. FY19 Guidance. 2. Source: UBS Investment Research. Annual compound return to 30 June 2018. 8 Growthpoint Properties Australia Full Year Results Presentation for the year ended 30 June 2018 | 16 August 2018
Financial Management 75 Dorcas Street, South Melbourne, VIC
FY18 Financial Management Highlights Statutory profit Distributions Funds From Operations Payout ratio to FFO $357.7m 22.2cps 25.0cps 88.8% 29% increase on prior corresponding period NTA per share Gearing reduced to Average cost of debt increased 10.8% to 33.9% 1 4.4% $3.19 From 38.5% 1 From 4.3% at From $2.88 at 30 June 2017 30 June 2017 at 30 June 2017 1. Gearing calculation changed during the period from interest bearing liabilities divided by total assets to interest bearing liabilities less cash divided by total assets less cash. This change brings Growthpoint’s gearing calculation more closely in line with industry peers. 10 Growthpoint Properties Australia Full Year Results Presentation for the year ended 30 June 2018 | 16 August 2018
Recommend
More recommend
