Growthpoint Properties Limited · JSE:GRT
Growthpoint Properties — H1 FY2009 Earnings Presentation
38 slides from Growthpoint Properties's earnings presentation, Feb 19, 2009
Slide 1: Interim Results Presentation
Interim Results Presentation For The Six Months Ended December 2008
Slide 2: Agenda
Agenda Introduction & Highlights Financial Review Operational Overview Acquisitions, Disposals and Developments Prospects Questions Page 2
Slide 3: Growthpoint in Summary
Growthpoint in Summary INTRODUCTION AND HIGHLIGHTS The largest listed property company on the JSE with property assets valued at more than R29 billion Market capitalisation in excess of R19 billion Diversified property portfolio comprising 437 properties countrywide: Retail Office Industrial R10,1 b
Slide 4: Highlights For The Period Under Review
Highlights For The Period Under Review INTRODUCTION AND HIGHLIGHTS Distribution per 56,3 cents 10.2% linked unit Market capitalisation R19 billion 35% Page 4
Slide 5: Highlights For The Period Under Review
Highlights For The Period Under Review INTRODUCTION AND HIGHLIGHTS Inclusion in the JSE Top 40 index # 31 on JSE Inclusion in the MSCI emerging market index Inclusion in the EPRA/NAREIT emerging market index Page 5
Slide 6: Highlights For The Period Under Review
Highlights For The Period Under Review INTRODUCTION AND HIGHLIGHTS Successful rights offer R1,742 billion Development capital spent R1,161 billion Acquisitions concluded R261 million Page 6
Slide 7: Historic Distributions Per Linked Unit
Historic Distributions Per Linked Unit INTRODUCTION AND HIGHLIGHTS Distribution % of total Period (cents) distribution Increase 6 Months Dec ’05 39,10 48.1% 10.1% 6 Months June ’06 42,20 51.9% 11.9% Year to June ’06 81,30 100.0% 11.1% 6 Months Dec ’06 45,00 48.3% 15.1% 6 Months June ’07 48,10 51.7%
Slide 8: Historic Market Information
Historic Market Information INTRODUCTION AND HIGHLIGHTS R billion Cents 1800 Unit price NTAV per unit 1500 1200 900 600 300 2003 2004 2005 2006 2007 2008 Page 8
Slide 9: Share Price Performance
Share Price Performance INTRODUCTION AND HIGHLIGHTS Growthpoint vs ALSI and SAPY Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2008 2009 Page 9
Slide 10: Financial Review
Financial Review GROW TEPOINT PROPERTIES
Slide 11: Income Statement (Extracts)
Income Statement (Extracts) FINANCIAL REVIEW Dec 2008 Dec 2007 Increase/ June 2008 R million R million (decrease) R million Gross property revenue 1,558 1,314 18.6% 2,712 Property expenses (390) (327) 19.3% (675) Net property income 1,168 987 18.3% 2,037 Other operating expenses (30) (29) 3.4% (62)
Slide 12: Net Property Income Analysis
Net Property Income Analysis FINANCIAL REVIEW Dec 2008 Dec 2007 Increase/ R million R million (decrease) Net property income 1,168 987 18.3% Adjustments: Acquisitions and developments (305) (189) Disposals (1) (6) Adjusted “like for like” net property income 862 792 8.8% Retail 294 274 7.3% Office 3
Slide 13: Segmental Information
Segmental Information FINANCIAL REVIEW Retail Office Industrial Total R million R million R million R million Gross property revenue 567 624 367 1,558 Property expenses (156) (153) (81) (390) Net property income 411 471 286 1,168 Percentage of total 35.2% 40.3% 24.5% 100.0% Fair value of property as
Slide 14: Balance Sheet (Extracts)
Balance Sheet (Extracts) FINANCIAL REVIEW Dec 2008 Dec 2007 Increase/ June 2008 R million R million (decrease) R million Non-current assets 31,451 26,621 30,231 Direct property portfolio 29,116 24,180 20.4% 27,245 Intangible assets 1,783 1,880 1,832 Long term loans (BEE) 449 353 325 Listed property
Slide 15: Recent Yield Curves
Recent Yield Curves FINANCIAL REVIEW Rate 0 Years Page 15
Slide 16: Property Portfolio
Property Portfolio FINANCIAL REVIEW Dec 2008 Dec 2007 Increase/ June 2008 R million R million (decrease) R million Beginning of period 27,245 22,173 22,173 Acquisitions 261 826 2,266 Capital expenditure 1,161 533 1,145 Disposals (46) (9) (120) Transfer to investment property - - (42) held for sale S
Slide 17: Borrowings – Nominal Value
Borrowings – Nominal Value FINANCIAL REVIEW Refinance Dec 2008 Dec 2007 June 2008 date R million R million R million Investec Buildings loan March 2024 703 Old Mutual Feb 2013 658 Securitisation – issue I Nov 2010 805 Securitisation – issue II Jul 2011 969 Securitisation – series III Nov 2009 1,566
Slide 18: Fixed Interest Rate Expiry Profile
Fixed Interest Rate Expiry Profile FINANCIAL REVIEW R million Year Weighted average length of interest rate fixes of 9,8 years Page 18
Slide 19: Growthpoint Loan Facilities
Growthpoint Loan Facilities FINANCIAL REVIEW Total loan facilities R10,584 bn R million 3500 3000 3197 2500 2000 1500 1566 1658 1305 1415 1000 500 740 703 0 12 13-24 25-36 49-60 73-84 109-120 181-192 Expiring in months Page 19
Slide 20: Key Statistics and Ratios
Key Statistics and Ratios FINANCIAL REVIEW Dec 2008 Dec 2007 June 2008 Income statement Property expense ratio (%) 25.0% 24.9% 24.9% Operating expense ratio (%) 1.9% 2.2% 2.3% Interest cover ratio (times) 2.7 3.2 3.2 Balance sheet Net asset value per linked unit (cents) 1,418 1,367 1,545 Net tangibl
Slide 21: Linked units in issue
Linked units in issue FINANCIAL REVIEW Dec 2008 Balance at 30 June 2008 1,280,926,195 Units issued during the period - Balance at 31 December 2008 1,280,926,195 Units issued in terms of the rights offer 128,092,620 Units in issue after the rights offer 1,409,018,815 Page 21
Slide 22: Tradability and Liquidity
Tradability and Liquidity FINANCIAL REVIEW 6 months 6 months ended ended 31 December 31 December 2008 2007 Units traded 359,842,589 474,078,254 Monthly average 59,973,765 79,013,042 Linked units in issue (weighted average) 1,280,926,195 1,094,145,242 Linked units traded as a percentage of 28.1% 43.3
Slide 23: Unitholders holding > 1% at December 2008
Unitholders holding > 1% at December 2008 FINANCIAL REVIEW Name Units held Holding Public Investment Corporation 372,290,382 29.1% BEE Consortia 122,000,000 9.5% Old Mutual Group 84,889,707 6.6% Stanlib 74,556,705 5.8% Investec 38,837,814 3.0% Liberty 37,920,571 3.0% Investment Solutions 36,619,747
Slide 24: Operational Overview
Operational Overview GROW TEPOINT PROPERTIES
Slide 25: Growthpoint’s Property Portfolio
Growthpoint’s Property Portfolio OPERATIONAL OVERVIEW Retail Office Industrial Total Number of properties 55 137 245 437 GLA (m²) 965,426 1,202,809 2,366,013 4,534,248 Vacancy (m²) 28,464 63,157 64,584 156,205 Vacancy (%) 3.0% 5.3% 2.7% 3.5% Valuation (R million) 10,068 12,469 6,579 29,116 Value per
Slide 26: Growthpoint’s Property Portfolio
Growthpoint’s Property Portfolio OPERATIONAL OVERVIEW GLA Vacancy Vacancy % Balance at 1 July 2008 4,412,754 129,783 2.9% GLA adjustments 2,758 4,042 Disposals (17,245) (650) Acquisitions (existing buildings) 23,038 - Developments and extensions 112,943 23,898 Leases expired in the period 420,271 Re
Slide 27: Total Lease Expiry Profile
Total Lease Expiry Profile OPERATIONAL OVERVIEW Lease expiry profile from Jan to Dec each year % Jan ’09 Jan ’10 Jan ’11 Jan ’12 Jan ’13 Jan ’14 to to to to to and Dec ’09 Dec ’10 Dec ’11 Dec ’12 Dec ’13 beyond Page 27
Slide 28: Sectoral Analysis
Sectoral Analysis OPERATIONAL OVERVIEW Value GLA Page 28
Slide 29: Geographical Analysis
Geographical Analysis OPERATIONAL OVERVIEW Value GLA Page 29
Slide 30: Acquisitions, Disposals and Developments
Acquisitions, Disposals and Developments
Slide 31: Acquisitions
Acquisitions ACQUISITIONS, DISPOSALS AND DEVELOPMENTS Purchase price Initial Property R million Sector yield The Estuaries 55,0 Office 9.4% BCX – Faerie Glen 53,7 Office 8.5% 7 Sturdee Avenue, Rosebank 49,9 Office 8.8% Clayville Industrial Estate, Midrand 38,3 Industrial 9.5% Thynk Industrial Park 3
Slide 32: Disposals
Disposals ACQUISITIONS, DISPOSALS AND DEVELOPMENTS Selling price Property R million Sector Gersident 5,0 Industrial Industry Road 20,0 Industrial Braamfontein 4410 20,8 Office Total 45,8 Page 32
Slide 33: Developments Completed and In Progress
Developments Completed and In Progress ACQUISITIONS, DISPOSALS AND DEVELOPMENTS Spent to 31 Spent to 30 December Approved June 2008 2008 Expected Property R million R million R million Sector yield 100 Grayston (Investec) ext 475,0 - 475,0 Office 8.1% Montclare Place, Claremont 361,9 259,4 85,7 Offi
Slide 34: Acquisitions and Disposals in Progress
Acquisitions and Disposals in Progress ACQUISITIONS, DISPOSALS AND DEVELOPMENTS Acquisitions Cost Property R million Sector Initial yield The Grove, Somerset West B, C & D 77,1 Industrial 11.3% Whizprop, Stormill 50,0 Industrial 11.0% Total 127,1 Disposals Selling price Property R million Book value
Slide 35: Prospects
Prospects GROW TEPOINT
Slide 36: The Current Operating Environment
The Current Operating Environment PROSPECTS There has been a deterioration in the overall trading conditions since the last quarter of 2008 All key players in the property industry are being impacted by the slowing global and local economy as well as the global financial crisis Major challenges duri
Slide 37: The Current Operating Environment
The Current Operating Environment PROSPECTS Major opportunities during the next 12 to 24 months include: Building costs have started to come down, however rental levels have peaked Capitalisation rates are starting to increase creating opportunities for yield enhancing acquisitions Distressed seller
Slide 38: Thank You
GROWTFEPOINT PROPERTIES
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