Goodman Property Trust
Annual Meeting 2020
1
Goodman Property Trust Annual Meeting 2020
Meeting agenda
- Review the operating performance of the Trust and the strategy for a more challenging economic environment
- Consider and vote on one ordinary resolution
- re-appointmentof Susan Paterson as an Independent Director
Keith Smith
Chairman and Independent Director
2
Goodman Property Trust Annual Meeting 2020
Questions and answers
You can send a question at any time, | 332-013-351 |
these will be addressed at the end of | |
the presentations. |
To ask a question
- Click on the speech bubble icon on the top centre of the page
- Type your question in the text box and click the send arrow
Keith Smith
Chairman and Independent Director
3
Goodman Property Trust Annual Meeting 2020
Voting
Online voting is available at anytime. | 332-013-351 |
To cast a vote
- Click on the bar graph icon on the far right of the page
- Click on either "For, Against or Abstain" and it will change colour to orange to show your vote has been received
Keith Smith
Chairman and Independent Director
4
Goodman Property Trust Annual Meeting 2020
Board and executives
Keith Smith | Greg Goodman | Leonie Freeman | John Dakin |
Chairman & Independent Director | Non-executive Director | Independent Director | Executive Director and CEO |
Susan Paterson | Phil Pryke | Peter Simmonds | Andy Eakin |
Independent Director | Non-executive Director | Independent Director | Chief Financial Officer |
5
Goodman Property Trust Annual Meeting 2020
Advisors
+ | Trustee | Covenant Trustee Services Limited |
+ | Auditor | PricewaterhouseCoopers |
Keith Smith
Chairman and Independent Director
6
Goodman Property Trust Annual Meeting 2020
Meeting formalities
- Nominated Chairman
- Notice of meeting properly given
- Quorum confirmed
Keith Smith
Chairman and Independent Director
7
Goodman Property Trust Annual Meeting 2020
Year in review
$284.4m
Profit before tax
$175m
New equity
100%
Auckland industrial weighting
Gateway warehouses, Highbrook Business Park | 8 |
Goodman Property Trust Annual Meeting 2020
COVID-19 impacts
- Health and safety of staff, customers and contractors continued to be first priority
- Goodman classified as an essential business
- Income receipts representing around 95% of rent due over last four months has been paid
- Remain cautious of longer-term economic impacts
Keith Smith
Chairman and Independent Director
9
Goodman Property Trust Annual Meeting 2020
Distribution policy
- Amended to ensure the business can continue to grow sustainably
- Adopting a pay-out ratio of between 80% and 90% of cash earnings1 aligns distributions with the underlying cashflows from GMT's stabilised portfolio
- Cash distributions of at least 5.3 cents per unit are expected to be paid in FY21
1 Cash earnings is a non-GAAP financial measure that assesses underlying operating cashflows, after adjusting for borrowing costs and Manager's base fee capitalised to land and expenditure related to building maintenance.
Keith Smith
Chairman and Independent Director
10
Goodman Property Trust Annual Meeting 2020
Financial overview
Gateway warehouses, Highbrook Business Park | 11 |
Goodman Property Trust Annual Meeting 2020
Andy Eakin
Chief Financial Officer
FY20 highlights
$ | m | $ | m | 6.65cpu |
261.9 | 165.8 | |||
Profit after tax | m | Portfolio revaluation | FY20 cash distribution | |
$ | cpu | 28.1% | ||
145.3 | 172.7 | Total Unitholder Return1 | ||
Net rental income | Net tangible asset backing | |||
12 months to 31 March 2020 |
1 GMT's stock market performance calculated on an accumulation basis, aligned with performance fee calculation.
Goodman Property Trust Annual Meeting 2020
Andy Eakin | |
Gearing and liquidity | |
Chief Financial Officer | |
+ $1.2 billion of asset sales since 2014 with more than $800 | Andy Eakin |
million reinvested into new development projects | Chief Financial Officer |
- Greater financial flexibility with $175 million of new equity, raised at $2.10 per unit
- Committed gearing of just 20.6%
- Refinancing of bank facilities provides almost $400 million of liquidity
13
Goodman Property Trust Annual Meeting 2020
Treasury initiatives
- 96% of drawn debt from non-bank sources
Andy Eakin
Chief Financial Officer
Bank debt
4%
- Undrawn bank facilities of almost $400 million
- GMT credit rating of BBB reaffirmed with debt rated BBB+
USPP notes
32%
Bonds 64%
Funding sources shown on a drawn basis as at 31 March 2020
14
Goodman Property Trust Annual Meeting 2020
Operational review
Westney Industry Park | 15 |
Goodman Property Trust Annual Meeting 2020
Investment strategy
- Industrial property plays a critical role in supply chains
- Continued urbanisation and growth of e-commerce contributing to increased demand for warehouse and logistics space
- GMT positioned to take advantage of these global trends
- Auckland is the preferred investment market, commercial centre of the country and its largest consumer market
John Dakin
Chief Executive Officer Executive Director
16
Goodman Property Trust Annual Meeting 2020
Property portfolio
$3.1bn
Value
99%
Occupancy
17
Goodman Property Trust Annual Meeting 2020
Customer focus
- Portfolio focused on storage, logistics and distribution
- Large proportion of customers' businesses were classified as essential throughout lockdown
- Support was directed at the most vulnerable businesses, those with limited financial capacity
John Dakin
Chief Executive Officer
Executive Director
Mainfreight image
18
Goodman Property Trust Annual Meeting 2020
Development programme
Active Healthcare, Highbrook Business Park | 19 |
Goodman Property Trust Annual Meeting 2020
Completed developments
John Dakin
Chief Executive Officer
Executive Director
El Kobar units
Estate | Highbrook Business Park |
Completion | March 2020 |
NLA | 5,330 sqm |
Hellmann
Estate | Highbrook Business Park |
Completion | December 2019 |
NLA | 3,548 sqm |
20
Goodman Property Trust Annual Meeting 2020
Completed developments
John Dakin
Chief Executive Officer
Executive Director
Paramount
Estate | Highbrook Business Park |
Completion | December 2019 |
NLA | 2,999 sqm |
NZ Food Network
Estate | Highbrook Business Park |
Completion | October 2019 |
NLA | 1,024 sqm |
21
Goodman Property Trust Annual ResultM eting20202020
NCI Packaging
Savill Link
22
Goodman Property Trust Annual Meeting 2020
Development progress
- Over 80% of the portfolio has been built since 2004
- Eleven new facilities completed in FY20
- Provides almost 35,000 sqm of high-quality space
- Value on completion was $158.6 million, contributing $22.5 million of fair value gains
- Projects are 100% leased with a weighted average lease term of more than 10 years
- Around $100 million of work in progress
John Dakin
Chief Executive Officer Executive Director
23
Goodman Property Trust Annual Meeting 2020
Mt Wellington acquisitions
Mt Wellington Estate
OfficeMax | 7,350sqm | ||
Goodman Property Trust Annual Meeting 2020 | |||
Warehouse extension | |||
Highbrook | |||
880 | |||
Panel, solar array
20%
Electrical demand
Warehouse extension
Goodman Property Trust Annual Meeting 2020
Sustainability - Carbon
- Green House Gas emissions
- FY19 CDP rating of B-
- Emissions inventory completed for FY20
- Independent audit assurance
- Future targets
- Carbon neutral business operations by 2025
- 100% renewable energy use by 2025
John Dakin
Chief Executive Officer Executive Director
26
Goodman Property Trust Annual Result 2020
Goodman
Foundation
1,250
Tonnes of food rescued
3.6
Million meals (equivalent)
Goodman Property Trust Annual Meeting 2020
Business outlook
- COVID-19is constraining economic growth globally
- GMT's investment strategy is focused on urban logistics property in Auckland
- The Trust is uniquely placed to benefit from the growing demand for distribution facilities close to consumers
- Market fundamentals remain strong with good levels of customer demand
- GMT is a well capitalised and resilient business that will continue to be managed prudently
John Dakin
Chief Executive Officer Executive Director
28
Goodman Property Trust Annual Meeting 2020
Goodman Group
Greg Goodman
Chief Executive Officer
Executive Director
394
Properties under management
$49.2bn
Total assets under management
As at 31 December 2019.
29
Goodman Property Trust Annual Meeting 2020
Questions
Highbrook Business Park | 30 |
Goodman Property Trust Annual Meeting 2020
Formal business
Resolution 1: Re-appointment of
Susan Paterson
As an ordinary resolution, that Unitholders approve the re-appointment of Susan Paterson as an Independent Director of the Manager.
Susan Paterson
Independent Director
31
Goodman Property Trust Annual Meeting 2020
Voting and close
- We will now close the poll and conclude the meeting
- The result will be announced on the NZX
32
Thank you
Disclaimer: The information and opinions in this presentation were prepared by Goodman (NZ) Limited on behalf of Goodman Property Trust and its subsidiaries (Goodman). Goodman makes no representation or warranty as to the accuracy or completeness of the information in this presentation.
Opinions including estimates and projections in this presentation constitute the current judgment of Goodman as at the date of this presentation. They are subject to change without notice. Such opinions are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond Goodman's control, and which may cause actual Meetings to differ materially from those expressed in this presentation.
Goodman undertakes no obligation to update any information or opinions whether as a Meeting of new information, future events or otherwise. This presentation is provided for information purposes only.
No contract or other legal obligations shall arise between Goodman and any recipient of this presentation.
Neither Goodman, nor any of its Board members, officers, employees, advisers or other representatives will be liable (in contract or tort, including negligence, or otherwise) for any direct or indirect damage, loss or cost (including legal costs) incurred or suffered by any recipient of this presentation or other person in connection with this presentation.
M20 Business Park, Wiri | 33 |
Attachments
- Original document
- Permalink
Disclaimer
Goodman Group published this content on 22 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2020 08:25:06 UTC