Gpt Group · ASX:GPT
Gpt — FY2004 Earnings Presentation
28 slides from Gpt's earnings presentation, February 2005
Slide 1: Annual Results Presentation 2004
GPT Annual Results Presentation 2004
Slide 2: Highlights
Highlights • Underlying earnings per unit up 3.1%* • Distribution per unit up 3.8% • Strong underlying portfolio performance • Future growth – Retail development pipeline – Recent acquisitions * Before abnormal items, including profit on sale of properties and costs in relation to the Lend Lease mer
Slide 3: Consistent Earnings Growth
Consistent Earnings Growth 2001 2002 2003 2004 Distribution (cpu) 19.7 20.4 21.2 22.0 Growth 2.1% 3.5% 3.9% 3.8% Earnings (cpu) 19.7 20.4 21.6 21.3 Underlying growth* 2.1% 3.6% 3.1% 3.1% 1 Yr Total Return 9.9% 12.8% 8.2% 33.6% * Excludes the impact of the change in fee, and costs associated with the
Slide 4: Financial Performance
Financial Performance 2003 2004 Net Operating Income* +7.3% 5.4% Total Assets $7.7b $9.1b Total Borrowings $2.1b $2.7b Interest Cover 5.1x 4.8x Gearing 27.6% 29.7% NTA per unit $2.73 $3.02 • Excludes $16.5 million in costs associated with the Lend Lease merger proposal and Stockland takeover offer G
Slide 5: Retail $4.7 billion (53%)
Retail $4.7 billion (53%) GPT
Slide 6: Key Results: Shopping Centres
Key Results: Shopping Centres • Total Portfolio income up 8% • Specialty base rent per sqm up 5% • Strong sales and operating results – Total centre MAT/sqm up 4.4% – Specialty MAT/sqm up 6.4% – Regional specialty productivity at $9,355/sqm* – Regional specialty occupancy costs at 14.4%* *Excluding
Slide 7: Strong Shopping Centre Revaluations
Strong Shopping Centre Revaluations • 13 centres valued 6 months to December 2004 • Quality reflected in strong valuation increases – $612.5 million net increase • Average capitalisation rate of 6.5% GPT
Slide 8: Melbourne Central
Melbourne Central • Major stages now open – Level 3 entertainment precinct open mid 2005 • Only 3 uncommitted tenancies • Retail mix delivered on vision – Initial trading results positive GPT
Slide 9: Melbourne Central
Melbourne Central | ~ A, ~ SH rentey 5
Slide 10: Melbourne Central
Melbourne Central GPT
Slide 11: Melbourne Central
Melbourne Central GPT
Slide 12: Melbourne Central
Melbourne Central GPT
Slide 13: Penrith Plaza
Penrith Plaza • $138 million development commenced in June 2004 • Leasing progressing well • Completion end 2005 • On track to achieve Year 1 yield of 8% GPT
Slide 14: Macarthur Square
Macarthur Square • $200 million development ($100m GPT share) commenced in September 2004 • Leasing progressing well • Completion – Stage 1 – end 2005 – Stage 2 – early 2006 • On track to achieve Year 1 yield of 8% GPT
Slide 15: Strong Development Pipeline
Strong Development Pipeline 2002 2003 2004 2005 2006 2007 2008 Floreat Forum $48M Erina Fair $106M Melbourne Central $260M Penrith Plaza Complete $140M Underway Macarthur $100M Square Planned Rouse Hill $350M* * Approximate value Regional Centre & timing Charlestown Square Chirnside Wollongong Sunsh
Slide 16: Office $3.1 billion (34%)
Office $3.1 billion (34%) GPT
Slide 17: Key Results: Office
Key Results: Office • Income up 15% • Portfolio quality enhanced – Stage 2 National Building complete – Darling Park Stage 3 acquired – Refurbishments • Occupancy remains high (93.7%) – Over 120,000 sqm leased • Manageable lease expiry profile – Average lease term 6.4 years GPT
Slide 18: Manageable Expiry Risk
Manageable Expiry Risk Office Lease Expiry Profile by Area 31 December 2004* 60.0% 53.1% 50.0% 40.0% 30.0% 20.0% 13.5% 8.1% 10.0% 6.3% 6.1% 5.4% 7.5% 0.0% Vacant 2005 2006 2007 2008 2009 Beyond * Excludes Darling Park Stage 3 GPT
Slide 19: Office Portfolio Outlook
Office Portfolio Outlook • Improving market fundamentals • Portfolio well positioned – Quality improved – Manageable expiry profile • Minimal vacancy – majority in Sydney GPT
Slide 20: Hotel/Tourism $777 million (9%)
Hotel/Tourism $777 million (9%) GPT
Slide 21: Strong Operating Results
Strong Operating Results • Portfolio income up 28% • Ayers Rock Resort – Revenue +6.7% – Room Nights Sold +4.6% – Room Rate +1.9% – GPT Income +10.7% • Four Points by Sheraton Sydney – Revenue +14.4% – Room Nights Sold +5.6% – Room Rate +8.6% – GPT Income +12.7% GPT
Slide 22: Portfolio Expanded
Portfolio Expanded • Voyages Lodges (P&O Resorts) acquisition $218m • Perfect strategic fit (quality & scale) – Australia’s Natural Treasures • Significant benefits – Marketing/cross selling – Greater diversity – Cost savings – Expansion land • 9.4% yield (excl land), increasing to 10% year 2 GPT
Slide 23: Industrial/Business Park $328 million (4%)
Industrial/Business Park $328 million (4%) GPT
Slide 24: Key Results: Industrial/Business Park
Key Results: Industrial/Business Park • Income up 25% • Significant development potential – Homebush Bay - Quad 3 (complete) - Quad 4 - 8 Herb Elliott Avenue - 7 Figtree Drive – Austrak, Somerton GPT
Slide 25: Masterplanned Urban Communities
Masterplanned Urban Communities GPT
Slide 26: Capital Management
Capital Management • Total Assets $9.1 billion • Gearing of 29.7% (limit 40%) • Borrowings – Maturities from within 1 month to 2029 – 93% hedged – Current effective interest rate 6.09% – Average duration 2.9 years • S&P ratings (Long term: A+, Short term: A-1) GPT
Slide 27: In Summary….
In Summary…. • Performance strong – Retail – highly productive quality portfolio – Office – asset quality enhanced, improving market – Hotel – portfolio scale & diversity enhanced, exposure to major markets and sectors – Industrial – well leased, retain significant expansion and acquisition options
Slide 28: Questions
GPT Questions