22 November 2017 ASX ANNOUNCEMENT GROWTHPOINT PROPERTIES AUSTRALIA (ASX Code: GOZ) Growthpoint ’s Key Metrics Presentation to the combined Annual General Meeting and at 30 September 2017 General Meeting Total property portfolio $3.2 billion value Pursuant to ASX Listing Rule 3.13.3, the Chairman’s and Managing Director’s Distribution guidance FY18 22.2 cents address for today’s combined Annual General Meeting of Growthpoint Number of properties 57 Properties Australia Limited and General Meeting of the unitholders of Growthpoint Properties Australia Trust are attached, along with the Office / industrial 64% / 36% presentation slides Average property age 9.9 years Occupancy 98% Webcast Weighted average lease 5.8 years expiry Today’s combined meeting will be webcast live at https://edge.media- Weighted average rent 3.3% server.com/m6/p/yd5wuwdd for the benefit of securityholders not being able to review (assumes CPI of 1.9%) be present. Weighted average 6.5% capitalisation rate A link to a recording of this webcast will be made available on Growthpoint’s website shortly after the conclusion of the meetings. NTA per stapled security $2.88 (as at 30 June 2017) Balance sheet gearing 39.5% For further information, please contact: Percentage debt fixed 75% Weighted average debt 5.0 years Investor Relations and Media maturity Daniel Colman, Investor Relations Manager Average NABERS rating 4.5 stars Telephone: +61 401 617 167 (energy) info@growthpoint.com.au Growthpoint Properties Australia Growthpoint Properties Australia is a publicly traded ASX listed A-REIT (ASX Code: GOZ) that specialises in the ownership and management of quality investment property. GOZ owns interests in a diversified portfolio of 57 office and industrial properties throughout Australia valued at approximately $3.2 billion and has an investment mandate to invest in office, industrial and retail property sectors. Growthpoint is included in the S&P/ASX 200 Index and has been issued with an investment grade rating of Baa2 for senior secured debt by Moody’s. GOZ aims to grow its portfolio over time and diversify its property investment by asset class, geography and tenant exposure through individual property acquisitions, portfolio transactions and corporate activity (M&A transactions) as opportunities arise. www.growthpoint.com.au Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409
Annual General Meeting of Growthpoint Properties Australia Limited Meeting of the unit holders of Growthpoint Properties Australia Trust 2.00 pm , Level 42, 101 Collins Street, Melbourne, Vic 3000 Wednesday, 22 November 2017 _____________________________________________________________________ CHAIRMAN’S ADDRESS Welcome to the combined annual general meeting of Growthpoint Properties Australia Limited and the general meeting of Growthpoint Properties Australia Trust. I am your Chairman, Geoff Tomlinson. P lease note that today’s proceedings are being webcast live for the benefit of securityholders not able to be present. A link to a recording of this webcast will be made available on Growthpoint’s website approximately two hours after the close of today’s m eeting. As we have a quorum for these meetings, I am pleased to declare the meetings officially open. The notice of meetings was sent to all securityholders on 23 October 2017 and I propose to take it as read. In addition to the securityholders present, I would like to welcome representatives from our auditors, Dean Waters and Sarah Greaney of KPMG, and our directors: They are, from your right, Timothy Collyer, our Managing Director; Maxine Brenner; Estienne de Klerk; Grant Jackson; Francois Marais; Norbert Sasse and our recently appointed director, Josephine Sukkar AM. Also present today is Aaron Hockly, our Company Secretary and Chief Operating Officer. And I would also like to introduce the other members of Growthpoint’s executive management team, being our Chief Financial Officer, Dion Andrews, and our Head of Property, Michael Green, who are both seated at the front of the audience.
Finally, I would like to welcome Growthpoint’s employees, most of whom are also present today. The agenda for today is as follows: 1. A presentation on the business and its strategy by Managing Director, Tim Collyer; 2. Presentation of the combined annual report for the company and the trust. I will call for questions and comments following the presentation of these acco unts. The company’s auditors, KPMG, are in attendance to answer any questions securityholders may have in relation to the audit, the auditor’s report, the accounting policies adopted and the independence of the auditor. Please address questions to me in the first instance and I will direct them as appropriate. 3. I will then explain the voting procedures and address each of the remaining items of business set out in the notice of meetings. Securityholders will have the opportunity to ask questions or make comments in relation to each item. After the meeting, directors, management and KPMG will be available for discussions with individual securityholders over refreshments to be served in this room. FY17 was a transformational year for Growthpoint Properties Australia. With a clear goal to achieve a higher weighting in the office sector and NSW market, the Group identified the GPT Metro Office Property Fund (GMF) as a vehicle that matched its strategic objectives. Over the course of FY17 the acquisition was completed and the assets are now fully integrated into the portfolio. Management and the board identified the GMF opportunity observing a disconnect between pricing in the direct property market and the listed market, and validation of this strategy has come in the form of significant valuation gains on the GMF assets, up 9% at 30 June 2017 on prior valuations. Where this pricing disconnect exists and a strategic advantage can be obtained, management has the boards ’ support to continue to evaluate and pursue other 2
listed opportunities that are accretive to earnings and in the best interests of Growthpoint securityholders. Importantly during FY17 we were also able to take advantage of strong pricing conditions to divest a number of assets either considere d ‘non - core’ to the Group, or assets we believed had reached their peak value to Growthpoint. These sales and including the recent disposal of the Mulgrave property helped the Group to reduce gearing to 38.4%. This lower level of gearing, coupled with the successful issue of AUD208 million long term debt finance in the USPP market, gives the board confidence that the balance sheet is in a good position. In aggregate, this restructuring of the property and debt portfolios leaves the Group well placed as we move into FY18, with high quality assets and tenants, low levels of upcoming lease expiries and a strong balance sheet. What’s most pleasing is the markets ’ recognition of Growthpoint’s progress in a total shareholder return sense, with GOZ considerably outperforming the ASX300 AREIT accumulation index over 1, 3 and 5 years. The Group has been ably managed by Tim Collyer and a consistent executive management team since establishment and I wish to thank all employees as well as my fellow directors for their contribution to our success. I will now hand over to the Managing Director, Tim Collyer. ______________________________________________________________________________ MANAGING DIRECTOR ’S ADDRESS Security holders, ladies and gentlemen, I welcome you to the Growthpoint Properties Australia Annual General Meeting. Financial results Growthpoint produced attractive returns for its securityholders in FY17 . Funds from operations per security rose strongly, 11.4% higher than FY16, to provide for a distribution per security of 21.5 cents, growth of 4.9%. 3
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