Goodman Group · ASX:GMG
Goodman — Macquarie Goodman Property Trust — H1 2004 Earnings Presentation
26 slides from Goodman's earnings presentation, 2004
Slide 1: MGP Interim Results to September 30
1 MGP Interim Results to September 30 1
Slide 2: Contents
2 Contents Section 1 – Highlights Section 2 – Financial Performance Section 3 – Capital Management Section 4 – The Portfolio Section 5 – Strategy Going Forward 2
Slide 3: Highlights
3 Highlights NPAT up 70% from $5.9m to $10.1m – includes gains from South City Shopping Centre of $4.175 million Cash distributions per unit up from 4.75 cents Total assets up 5.6% from $225.6m to $229.8m Underlying EPU up from 4.75 to 4.85 4 properties acquired – MGP share of purchases $77m 45,573
Slide 4: Results Overview
4 Results Overview Sept – 04 Sept-03 Change ($000) ($000) (%) Net operating income 10,736 11,049 -2.83 Operating expenses (987) (1,131) -12.71 EBIT 9,749 9,918 -1.71 Interest and finance charges (1,887) (3,206) -37.63 Net operating surplus after income tax 7,862 6,892 14.07 Taxation expense (1,917)
Slide 5: Distributions
5 Distributions Sept – 04 Sept-03 Change (cpu) (cpu) (%) Normalised weighted earnings per unit 4.85 4.75 2.10 before tax Forecast gross distributions per unit 11.30 9.48 19.20 Forecast Normalised Gross Distributions 9.30 9.00 3.37 per Unit 5
Slide 6: Assets and Liabilities
6 Assets and Liabilities Sept 04 Sept 03 Chang ($000) ($000) e (%) Total Assets ($000) 230,256 225,572 2.08 Total Property Assets ($000) 225,728 223,319 1.08 Total Borrowings 62,000 79,855 -22.36 Total Liabilities ($000) 67,530 86,939 -22.33 Total Equity ($000) 162,726 138,633 17.38 Loan to Value Ra
Slide 7: Capital Management
7 Capital Management Institutional Placement made early May, raising $20.9 million Revolving credit facility totalling $150 million with Westpac and Commonwealth Bank of Australia Dividend reinvestment plan - in place for September quarter distribution - zero discount 7
Slide 8: Tax
8 Tax MGP will not claim depreciation on property acquisitions and developments from April 1, 2004 due to the impending introduction of International Financial Reporting Standards (IFRS) and the effect they will have on the way that MGP accounts for deferred tax. This will result in increased taxati
Slide 9: Existing NZ GAAP
9 Existing NZ GAAP Depreciation Depreciation Claimed Unclaimed Net Profit before Tax 100 100 Taxation 15 33 Net Profit after Tax 85 67 Distribution Cash 85 67 Imputation Credits 15 33 100 100 9
Slide 10: IFRS
10 IFRS Depreciation Depreciation Claimed Unclaimed Net profit before Tax 100 100 Taxation – Current 15 33 Taxation – Deferred 18 0 33 33 Net Profit after Tax 67 67 Distribution Cash 67 67 Imputation Credits 15 33 82 100 10
Slide 11: Leasing Statistics
11 Leasing Statistics Occupancy rate increased from 98.3% to 99.2% Average lease term of 3.8 years 45,573 sqm (16.2%) of the portfolio leased comprising - 28,559 sqm from existing customers - 17,014 sqm from new customers Customer numbers up from 105 to 113 (excluding South City Shopping Centre) Maj
Slide 12: Major Leasing Transactions – a snapshot
12 Major Leasing Transactions – a snapshot Rental rate 2 Annual No. of Rate Per m $ per car Property Customer Total Area (m2) Passing parking P/A space per Rental spaces annum Auckland Distribution Centre, Wiri Linfox Logistics (NZ) LTD 9,426 $27 $250,000 Axiom Risk insurance LTD 661 $188 $124,535 2
Slide 13: Recent Rent Reviews
13 Recent Rent Reviews Property Lease Area Previous New Rental Total rental Rental ($psm) increase ($psm) Millennium Centre 1,431 210. 225.00 6% Millennium Centre 424 212 226.50 7% Millennium Centre 1,035 212 227.50 7% Central Park 2,149. 195 220.00 12% Central Park 74 175. 220.00 26% Central Park 3
Slide 14: Portfolio Occupancy
14 Portfolio Occupancy Vacant Occupied Property Classification Total NLA Space Space % Fletcher Challenge Complex Business Park 48,527 - 100.0% Penrose Industrial Estate Industrial Estate 44,453 - 100.0% Savill Drive Industrial Estate - - - The Gate Industrial Estate 50,018 - 100.0% BTI house Office
Slide 15: Lease Expiries and WALE
15 Lease Expiries and WALE 30% 25% WALE 3.8 years 20% 15% 10% 5% 0% <1 1-2 2-3 3-4 4-5 >5 15
Slide 16: Top 10 Customers
16 Top 10 Customers Armourguard 5% Vector Limited 6% Top 10 Customers account for 46.4 % of Bayleys Real Estate 6% rental income Fletcher Building Linfox 34% 6% Hewlett Packard 7% EDS (NZ) Limited 7% IBM Turners Auctions 8% 13% SCA 8% 16
Slide 17: 10 Year Lease Expiry
17 10 Year Lease Expiry 10 Year Lease Expiry Profile $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 17
Slide 18: Acquisitions
18 Acquisitions Savill Link purchased for $34.4 million by MGP and MGI in June 2004 to be developed into $130 million industry park over 5 years customer interest strong with Stage 1 works to begin early 2005 18
Slide 19: Savill Link Progress
19 Savill Link Progress Demolition work now 80% complete Initial stage of infrastructure works currently out to tender Works will include an initial extension of Savill Drive Currently in advanced discussions with two key Macquarie Goodman customers to develop a substantial portion of the site. 19
Slide 20: Savill Link Plan
Macquarie ‘CTelelolsat-la We Savill Link Plan
Slide 21: Acquisitions
21 Acquisitions Fletcher Site Purchased from Trans Tasman Properties for a total of $72 million in May 8.1 hectares with five office and 18 warehouse/industrial buildings Located close to four of MGP’s other assets in Penrose, Auckland Close proximity to Southern motorway on-ramp 21
Slide 22: Macquarie Goodman
Macquarie Goodman 22
Slide 23: Major Acquisitions
23 Major Acquisitions HP House Total purchase price of $25.8 million Situated in the high profile Viaduct Harbour, Auckland 7,369 sqm with 51.1% leased to Bayleys Real Estate Annual net rental of $2.5 million provides an initial yield of 9.7 % WALT of 3.8 years 23
Slide 24: Major Acquisitions
24 Major Acquisitions HSBC Centre (settled outside interim reporting period) High quality office situated on Auckland’s North Shore Total purchase price of $21.9 million Total rental income of $1.9 million, providing a yield of 9 per cent Net lettable area of 5,850 sqm WALT of 5.4 years 24
Slide 25: Asset Class and Geographic Diversity
25 Asset Class and Geographic Diversity Warehouse / Distribution 6% Wellington Business Park Other 5% 15% 5% Industrial Estate 25% Office Park 49% Auckland 95% 25
Slide 26: Strategy Going Forward
26 Strategy Going Forward Maintain high occupancy rate Achieve high customer retention Finalise development pre-commitments and deliver new product Acquire properties in strategic locations Continue to implement customer service model Develop relationships with key New Zealand based customers not cu
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