Gpt Group · ASX:GPT
Gpt — Corporate Update (July 2008)
13 slides from Gpt's corporate update, Jul 7, 2008
Slide 1: Market update
Market update ASX announcement 7 July 2008
Slide 2: Guidance update summary
Guidance update summary Financial year ending 31 December 2008 guidance revised to reflect current environment – EPS guidance of 21.2 cents – DPS guidance of 20.0 cents Revision of distribution policy – Retain development profits – Payout 90-100% of other operating income June quarter DRP will
Slide 3: Market environment
Market environment Global financial, credit and property markets continue to be challenging GPT considers it prudent to expect market conditions to remain weak for the balance of 2008 Major reductions in transaction volumes globally and reduced demand for wholesale fund equity raisings Marke
Slide 4: Segment operating income - 2008 guidance
Segment operating income - 2008 guidance $m Previous Revised Retail, Office & Industrial 502 516 Hotel/Tourism 57 42 US Seniors Housing 24 15 Australian Funds Management 31 28 European Funds Management 26 (15) Joint Venture Fund 141 125 Development 88 29 Corporate (235) (275) Total 633 464 Portfol
Slide 5: Development profits
Development profits Sale of two-thirds interest in One One One Eagle Street to GWOF and existing capital partner – $29m development profit to GPT realised Follows sale of workplace6 development to GWOF in 2007 GPT only booked 60% of gain to operating income in both transactions - reflects GPT’
Slide 6: Joint Venture Fund
Joint Venture Fund Negotiations with Babcock & Brown continue Results for 2008 assumed to be $125m, reflecting no trading profits or capital recycling JV Fund has long term debt in place and will only realise assets when it makes sense to do so Expect the JV fund to materially downsize from
Slide 7: European Funds Management
European Funds Management Extremely challenging market conditions, resulting in deferral of fund launches GPT has undertaken a review of the GPT Halverton funds management platform Aim to reduce GPT Halverton annualised cost base by approximately 30% during Q3 and move business to breakeven po
Slide 8: Tourism portfolio
Tourism portfolio Tourism market negatively affected by the strong Australian dollar, rising fuel costs and aviation capacity reductions Weakness is evident in GPT’s Tourism portfolio, notwithstanding intensive operational management Four Points Hotel (Sydney) still performing strongly 8 ASX a
Slide 9: US Seniors Housing
US Seniors Housing Dramatic deterioration of US housing market and weakening broader economy has negatively impacted earnings Occupancies declining as new resident move-ins decrease Input cost inflation is also evident 9 ASX announcement 7 July 2008
Slide 10: Revised distribution policy
Revised distribution policy Realised development profits will be retained going forward Payout range of 90-100% of other operating income – Will be determined on composition of operating income, GPT capital management strategies and general market conditions Therefore a proportion of earnings
Slide 11: Distribution guidance
Distribution guidance Full year ended 31 December 2008 distribution guidance of 20.0 cents per security Expected payout ratio of 94% Distribution for the quarter ending 30 June 2008 at 4.2 cents per stapled security Underwriting of the June quarter DRP cancelled 11 ASX announcement 7 July 20
Slide 12: Capital position
Capital position Headline and look through gearing remain comfortably within policy ranges and debt covenants – Headline 36.3%1 (policy range 30-40%) – Look through 46.8%1 (policy range 40-50%) – Both expected to have improved in the period to 30 June 2008 Debt maturities total only $100m in 200
Slide 13: Outlook
Outlook Financial, credit and property market conditions are challenging Regardless, Management and the Board recognises that the revised earnings outlook is a very disappointing outcome for all stakeholders GPT remains committed to the strategy of ownership, development and funds management o