THE MARK OF QUALITY GOODMAN PROPERTY TRUST ANNUAL MEETING 2017 A - - PowerPoint PPT Presentation
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
ANNUAL MEETING 2017 GOODMAN PROPERTY TRUST
A PORTFOLIO OF THE VERY BEST INDUSTRIAL AND COMMERCIAL PROPERTIES
MEETING AGENDA
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Review the strategy and performance of the Trust
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Consider and vote on one ordinary resolution
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re-appointment of Susan Paterson as an Independent Director
BOARD AND EXECUTIVES
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Peter Simmonds Independent Director
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Leonie Freeman Independent Director
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Phil Pryke Non-executive Director
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Susan Paterson Independent Director
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Keith Smith Chairman and Independent Director
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Andy Eakin Chief Financial Officer
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John Dakin Executive Director and Chief Executive Officer Apology
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Greg Goodman Non-executive Director
TRUSTEE & ADVISORS
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Trustee, Covenant Trustee Services Limited
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Solicitors, Russell McVeagh
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Auditor, PricewaterhouseCoopers
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Tax advisors, KPMG
MEETING FORMALITIES
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Notice of meeting properly given
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Quorum confirmed
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Voting process outlined
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T H E M A R K O F Q U A L I T Y
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BUILDING QUALITY
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Disciplined investment strategy that is focused on portfolio quality and long-term growth
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Asset recycling is funding new development activity
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De-leveraging is providing substantial balance sheet capacity
SENIOR APPOINTMENT
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Peter Dufaur, who led GMT’s successful development programme, has left Goodman after 13 years
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Michael Gimblett is the new head of development. Mike has 10 years’ experience with Goodman
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T H E M A R K O F Q U A L I T Y
Coda — Savill Link improving financial metrics
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BALANCE SHEET STRENGTH
Features of GMT’s strong balance sheet include:
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a high quality asset base;
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reliable cashflows;
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a prudent level of debt; and
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secure and diverse debt facilities.
$
PROFT BEFORE TAX
$
OPERATING EARNINGS BEFORE TAX
$
PORTFOLIO REVALUATION
$
ASSET SALES IN FY17 30.6% LOOK THROUGH LOAN TO RATIO VALUE
NET TAGIBLE ASSET BACKING
$
NET RENTAL INCOME
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GOODMAN BONDS
MATURITY MAY 2024
$100million
WITH AN INTEREST RATE OF 4.54% P.A.
ISSUE CREDIT RATING
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CASH DISTRIBUTION
CASH EARNINGS
OPERATING EARNINGS BEFORE TAX
first quarter distribution
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FY18 DISTRIBUTION
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FY18 cash distributions maintained at 6.65 cents per unit
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Equivalent to a 6.45% after tax yield for 17.5% marginal taxpayer (1)
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Cash distribution of 1.6625 cents per unit
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Imputation of 0.3418 cents per unit
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Payment date 21 September 2017
guidance
(1) at the current trading price of $1.25 15
T H E M A R K O F Q U A L I T Y
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$
OF ASSET SALES
$
IN NEW DEVELOPMENT PROJECTS
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IN ACQUISITIONS
OVER THE LAST FIVE YEARS GMT HAS COMPLETED AND REINVESTED
Millennium Centre — Greenlane 17
PORTFOLIO TRANSFORMATION
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Greater investment in Auckland through development and strategic acquisitions
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Sales success reducing
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Development land just 7% of portfolio value
60.0% 28.0% 12.0% 77.4% 15.6% 7.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Industrial Office Park Development Land
2013 2017 Asset Diversity %
(portfolio value at 31 March 2017) 18
CUSTOMERS
WORKFORCE EMPLOYED IN GMT ASSETS
SQM RENTABLE AREA PROPERTY PORTFOLIO
PORTFOLIO OCCUPANCY
$
82.6 98.2 108.8 148.7 97.0 20 40 60 80 100 120 140 160 FY13 FY14 FY15 FY16 FY17 $ m
Other Highbrook
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DEVELOPMENT-+-QUALITY PRODUCT
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Average $107 million per annum of new project starts over the last five years
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Yield on cost typically between 6.0% and 7.5%
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15% to 20% revaluation gain on completion Development Projects $m
(total project cost including land value) Big Chill, Highbrook Business Park
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November 2016
VALUE$38.4m
NLA7,866sqm
Coda, Savill Link
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December 2016
VALUE$22.6m
NLA4,980sqm
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COMPLETED PROJECTS
Building 5, Highbrook Business Park Exeed, Highbrook Business Park
COMPLETIONNovember 2016
VALUE$16.4m
NLA3,467sqm
COMPLETIONMarch 2017
VALUE$8.1m
NLA2,796sqm
January 2017
VALUE$25.2m
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COMPLETED PROJECTS
Orora, M20 Business Park EDL Fasteners, Highbrook Business Park
COMPLETIONMay 2016
NLA11,288sqm
VALUE$12.5m
NLA4,664sqm
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At almost 50% of GMT’s portfolio value, Highbrook is a significant driver of its financial performance
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More than 75% complete with over 380,000 sqm of rentable area
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99% occupancy, 5.7 year average lease term and 6 year average building age
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80 customers and over 4,000 staff
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HIGHBROOKMASTER PLAN
Estate expected to be more than 90% complete within 3 years
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Greatest population and commercial heart
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Growing faster than
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New airport, port, rail and road infrastructure projects
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E-COMMERCE
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Growth in online sales increasing demand for distribution space
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Highlights the importance of locations close to the consumer
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Modern warehousing provides operational efficiencies, driving customer demand for prime assets in key markets
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NZ online spending currently 7.4% of total retail sales, relatively immature compared to the UK at around 20%
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Growing proportion of online sales from offshore
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GMT portfolio well positioned to benefit from online sales growth
property impacts local market
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$
ACQUISITION COST
OCCUPANCY
WEIGHTED AVERAGE LEASE TERM
GREEN STAR DESIGN RATING
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BUSINESS SPACE
Including amortised items, passing yield is 8.8%. 31
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Investing in high quality, Auckland, industrial and business space property
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Demographic and technological change support this strategy
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Development and transactional activity is enhancing the portfolio
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Asset recycling is providing balance sheet strength and creating a more resilient business
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Completing Highbrook Business Park remains an important objective
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BUSINESS STRATEGY
sustainable growth portfolio quality
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Highbrook Crossing — Highbrook Business ParkT H E M A R K O F Q U A L I T Y
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T H E M A R K O F Q U A L I T Y
BOARD RECOMMENDATION + RESOLUTION
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The Board considers Susan Paterson to be an Independent Director and unanimously recommend that Unitholders vote in favour of her re-appointment
formal business
As an ordinary resolution, that, Unitholders approve the re-appointment of Susan Paterson as an Independent Director of the Manager.
formal business
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VOTING AND CLOSE
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We will now proceed to a poll and conclude the meeting
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The result will be announced to the NZX