THE MARK OF QUALITY GOODMAN PROPERTY TRUST ANNUAL MEETING 2017 A PORTFOLIO OF THE VERY BEST INDUSTRIAL AND COMMERCIAL PROPERTIES
MEETING AGENDA + Review the strategy and performance of the Trust + Consider and vote on one ordinary resolution − re-appointment of Susan Paterson as an Independent Director 02
BOARD AND EXECUTIVES + Peter Simmonds Independent Director + Leonie Freeman Independent Director + Phil Pryke Non-executive Director + Susan Paterson Independent Director + Keith Smith Chairman and Independent Director + Andy Eakin Chief Financial Officer + John Dakin Executive Director and Chief Executive Officer Apology + Greg Goodman Non-executive Director 03
TRUSTEE & ADVISORS + Trustee, Covenant Trustee Services Limited + Solicitors, Russell McVeagh + Auditor, PricewaterhouseCoopers + Tax advisors, KPMG 04
MEETING FORMALITIES + Notice of meeting properly given + Quorum confirmed + Voting process outlined 05
2017 OVERVIEW Coda — Savill Link T H E M A R K 06 O F Q U A L I T Y
BUILDING QUALITY + Disciplined investment strategy that is focused on portfolio quality and long-term growth + Asset recycling is funding new development activity + De-leveraging is providing substantial balance sheet capacity 07
SENIOR APPOINTMENT + Peter Dufaur, who led GMT’s successful development programme, has left Goodman after 13 years + Michael Gimblett is the new head of development. Mike has 10 years’ experience with Goodman 08
FINANCIAL SUMMARY Coda — Savill Link T H E M A R K 09 O F Q U A L I T Y
BALANCE SHEET STRENGTH improving financial metrics Features of GMT’s strong balance sheet include: + a high quality asset base; + reliable cashflows; + a prudent level of debt; and + secure and diverse debt facilities. 10
FINANCIAL $ $ $ HIGHLIGHTS 220.5 m 121.7 m 114.7 m PORTFOLIO REVALUATION PROFT BEFORE TAX OPERATING EARNINGS BEFORE TAX $ $ 147.2 m ASSET SALES IN FY17 30.6 % 278.8 m 130.4 cpu NET RENTAL INCOME LOOK THROUGH LOAN NET TAGIBLE TO RATIO VALUE ASSET BACKING 11
GOODMAN BONDS 7 YEAR FIXED SENIOR RATE BONDS SECURED MATURITY MAY 2024 BBB + ISSUE CREDIT RATING $ 100 million WITH AN INTEREST RATE OF 4.54% P.A. 12
EARNINGS 9.51 cpu ANALYSIS OPERATING EARNINGS BEFORE TAX 7.08 cpu 6.65 cpu CASH EARNINGS CASH DISTRIBUTION 13
FY18 DISTRIBUTION + FY18 cash distributions maintained at 6.65 cents per unit guidance + Equivalent to a 6.45% after tax yield for 17.5% marginal taxpayer (1) + Cash distribution of 1.6625 cents per unit first quarter distribution + Imputation of 0.3418 cents per unit + Payment date 21 September 2017 (1) at the current trading price of $1.25 14
PROPERTY PORTFOLIO Courier Post – Highbrook Business Park T H E M A R K 15 O F Q U A L I T Y
OVER THE LAST FIVE YEARS GMT HAS COMPLETED ASSET $ 626.8 m RECYCLING OF ASSET SALES AND REINVESTED $ $ 180.3 m 535.3 m IN ACQUISITIONS IN NEW DEVELOPMENT PROJECTS 16 Millennium Centre — Greenlane
PORTFOLIO TRANSFORMATION Asset Diversity % + Greater investment in (portfolio value at 31 March 2017) Auckland through development and strategic acquisitions 90% 77.4% 80% + Sales success reducing 70% office weighting 60.0% 60% 50% + Development land just 7% of portfolio value 40% 28.0% 30% 20% 15.6% 12.0% 7.0% 10% 0% Industrial Office Park Development Land 2013 2017 17
1.0 m 98 % PROPERTY PORTFOLIO SQM PORTFOLIO RENTABLE AREA OCCUPANCY $ 240 17 , 000 2.4 bn PROPERTY PORTFOLIO WORKFORCE EMPLOYED CUSTOMERS IN GMT ASSETS 18
DEVELOPMENT-+-QUALITY PRODUCT Development Projects $m + Average $107 million (total project cost including land value) per annum of new project starts over the 160 last five years 148.7 140 + Yield on cost typically between 6.0% and 7.5% 120 108.8 + 15% to 20% revaluation 98.2 97.0 100 gain on completion 82.6 80 60 40 20 0 FY13 FY14 FY15 FY16 FY17 $ m Other Highbrook 19
COMPLETED PROJECTS COMPLETION VALUE NLA Big Chill, Highbrook Business Park $38.4m 7,866sqm November 2016 20
COMPLETED PROJECTS COMPLETION VALUE NLA Coda, Savill Link $22.6m 4,980sqm December 2016 21
COMPLETED PROJECTS Building 5, Highbrook Business Park Exeed, Highbrook Business Park COMPLETION VALUE NLA COMPLETION VALUE NLA $16.4m 3,467sqm $8.1m 2,796sqm November 2016 March 2017 22
COMPLETED PROJECTS Orora, M20 Business Park EDL Fasteners, Highbrook Business Park COMPLETION VALUE NLA COMPLETION VALUE NLA $25.2m 11,288sqm $12.5m 4,664sqm May 2016 January 2017 23
HIGHBROOK BUSINESS PARK At almost 50% of GMT’s portfolio value, Highbrook is a significant driver of its financial performance 24
HIGHBROOK TODAY + More than 75% complete with over 380,000 sqm of rentable area + 99% occupancy, 5.7 year average lease term and 6 year average building age + 80 customers and over 4,000 staff 25
HIGHBROOKMASTER PLAN Estate expected to be more than 90% complete within 3 years 26
AUCKLAND FOCUSED + Greatest population and commercial heart of the country + Growing faster than other main centres + New airport, port, rail and road infrastructure projects 27
E-COMMERCE + Growth in online sales increasing demand for distribution space property impacts + Highlights the importance of locations close to the consumer + Modern warehousing provides operational efficiencies, driving customer demand for prime assets in key markets local market + NZ online spending currently 7.4% of total retail sales, relatively immature compared to the UK at around 20% + Growing proportion of online sales from offshore + GMT portfolio well positioned to benefit from online sales growth 28
VXV PRECINCT 29
$ 62.3 m ACQUISITION COST BAYLEYS 8 , 106 sqm 5 Star HOUSE GREEN STAR BUSINESS SPACE DESIGN RATING 9 year 100 % OCCUPANCY WEIGHTED AVERAGE LEASE TERM 30 Including amortised items, passing yield is 8.8%.
31
32
BUSINESS STRATEGY + portfolio quality Investing in high quality, Auckland, industrial and business space property + Demographic and technological change support this strategy + Development and transactional activity is enhancing the portfolio + Asset recycling is providing balance sheet strength and creating a sustainable growth more resilient business + Completing Highbrook Business Park remains an important objective 33
QUESTIONS Highbrook Crossing — Highbrook Business Park T H E M A R K 34 O F Q U A L I T Y
FORMAL BUSINESS Big Chill — Highbrook Business Park T H E M A R K 35 O F Q U A L I T Y
BOARD RECOMMENDATION + RESOLUTION The Board considers Susan Paterson to be an formal business Independent Director and unanimously recommend that Unitholders vote in favour of her re-appointment As an ordinary resolution, that, Unitholders approve the re-appointment of Susan Paterson as an Independent Director of the Manager. 36
VOTING AND CLOSE formal business + We will now proceed to a poll and conclude the meeting + The result will be announced to the NZX 37
THANK YOU THANK YOU Datacom — VXV Precinct
Recommend
More recommend
