Goodman Group · ASX:GMG
Goodman — Macquarie Goodman Group — Q3 FY07 Earnings Presentation
21 slides from Goodman's earnings presentation, April 2007
Slide 1: Macquarie Goodman Group Operational Update Q3 - FY07
Macquarie Goodman Group Operational Update Q3 - FY07 1
Slide 2: Contents
Contents Section 1 Overview Section 2 UK Logistics Platform Section 3 Regional Operations Section 4 Appendices 2
Slide 3: Section 1 – Overview
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Slide 4: Third Quarter in Review
Third Quarter in Review Æ Assets under management up 5% to $34.9 billon (+$1.5 billon) Æ Asia Pacific up 9% to $11.1 billion Æ Europe up 3% to $23.8 billion Æ Strong European fund performance over CY06 Æ New initiatives in progress across the UK and Australia Æ Development volumes remain consistent
Slide 5: Acquisition of Rosemound
Acquisition of Rosemound Æ UK logistics/warehouse market is being redeveloped Æ 73% of stock is greater than 7 years old with only 27% considered A grade Æ Institutional grade stock around 20 million sqm with 10% pa being added Æ Land holdings are paramount due to scarcity and planning issues Æ Rose
Slide 6: Section 2 – UK Logistics Platform
Section 2 – UK Logistics Platform
Slide 7: European Funds Management
European Funds Management Æ European wholesale fund management platform stands at $23.8 billon Æ $14 billion in business space Æ Target of 4 key wholesale business space funds in the region Æ ABPP: UK Business Park Fund Æ AEBPF: European Business Park Fund Æ AELF: European Logistics Fund Æ Proposed
Slide 8: UK Logistics Real Estate Market
UK Logistics Real Estate Market Æ Current UK logistics stock is approx 50 million sqm Æ 40% of users are either retailers or 3PLs Æ 91% of future demand is expected to be driven by retailers and 3PLs Æ Large proportion of available logistics property is ageing Æ 73% of stock is over 7 years old and
Slide 9: UK Logistics Platform
UK Logistics Platform Æ Rosemound is a specialist UK logistics developer Æ 14 individual sites located in key logistics locations Æ Total land area > 4 million sqm Æ Established in 2002 by the former directors/shareholders of Kingspark Developments Æ Executive Director – David Keir Æ CEO – Jason Dal
Slide 10: UK Logistics Platform - Rosemound
UK Logistics Platform - Rosemound Æ The portfolio is located in strategic SE, NW and Midlands locations Æ Close proximity to key infrastructure routes Æ Compliments existing warehoused stabilised portfolio NDA GLA Site (acres) (sq ft) 1 Andover, Hampshire 99 1,750,000 2 Bridgwater, Somerset 48 900,0
Slide 11: Strategic Rationale
Strategic Rationale Æ Provides access to highly sought after investment opportunities Æ Enhances the proposed offering for the UKLF Æ Land to be warehoused for launch of fund Æ Allows the Group to service its global customer base in the UK Æ Provides scope to deepen existing customer relationships a
Slide 12: Consideration and Financial Impact
Consideration and Financial Impact Æ Acquisition of land and business for £336 million ($840 million) pre- acquisition costs and net of working capital Æ £261 million ($653 million) payable on completion Æ £30 million ($75 million) contingent on land approvals Æ £291 million ($728 million) total (co
Slide 13: Section 3 – Regional Operations
Section 3 – Regional Operations
Slide 14: Regional Update - Asia Pacific
Regional Update - Asia Pacific Management services Æ Growth in AUM of 9% to $11.1 billion Æ $0.3 billion growth in AREIT Æ $0.3 billion growth in MGWA Æ MGWA is undertaking a $500 million equity raising Æ Has acquired 6 assets from the Group for $211 million at a 7.6% cap rate Æ Entitlement issue to
Slide 15: Regional Update - Asia Pacific
Regional Update - Asia Pacific Development activity Æ $336 million of development completions during the period Æ 76% within managed fund platform Æ $221 million of new development commencements during the period Æ 76% pre-committed, 11.3 year WALT Æ 79% within managed fund platform Æ New major deve
Slide 16: Regional Update - Asia Pacific
Regional Update - Asia Pacific Investments Æ MGWA acquired $211 million from the Group Æ Conducting $500 million raising Æ Group committing to reinvestment of $150 million (30% pro-rata share) Æ Raising has been structured in 2 tranches – 50% in July 2007 and 50% in January 2008 Æ Group has entered
Slide 17: Regional Update - Europe
Regional Update - Europe Management services Æ Growth in AUM of 3% to $23.8 billion Æ $0.1 billion growth in wholesale platform Æ $0.9 billion growth in direct/indirect funds management platform Æ AELF has acquired $125 million over the period Æ Launched Dec ‘06 with $450 million in initial assets a
Slide 18: Regional Update - Europe
Regional Update - Europe Management services (cont) Æ Significant outperformance by ABPP of 7.8% over CY06 Æ Exceeded benchmark of 17.8% Æ Outperformance driven by access to development landbank within fund and strong market fundamentals Æ Consolidation of Akeler acquisition in December 2006 to driv
Slide 19: Regional Update - Europe
Regional Update - Europe Development activity Æ $106 million of development completions during the period Æ 67% within managed fund platform Æ $264 million of new development commencements during the period Æ 87% precommitted, 11.7 years WALT Æ 61% within managed fund platform Æ New major developmen
Slide 20: Regional Update - Europe
Regional Update - Europe Investments Æ AELF second close completed with the Group retaining 27% Æ First close in December 2006 the Group held 40% Æ Second close facilitated a number of investors to complete due diligence process Æ Current Group holding in line with long term cornerstone holding leve
Slide 21: Thank you
You Thank you Disclaimer This presentation for the quarter ended 31 March 2007 has been prepared by Macquarie Goodman Group (Macquarie Goodman Management Limited ABN 69 000 123 071 and its controlled entities including Macquarie Goodman Funds Management Limited ABN 48 067 796 641, AFSL Number 223621
Macquarie Goodman Group — Q3 FY07 Earnings Presentation on 6ix