12 Aug 2021

GARDA Annual Results Presentation

FULL YEAR RESULTS PRESENTATION | June 2021 GARDA PROPERTY GROUP (ASX: GDF) DISCLAIMER 2 This presentation ( Presentation ) has been prepared on behalf of GARDA Property Group ( GDF or Group or GARDA ), comprising GARDA Holdings Limited ( GHL ) and its controlled entities and GARDA Capital Limited (ACN 095 039 366) (AFSL 246714) ( GCL ) as responsible entity of the GARDA Diversified Property Fund ARSN 104 391 273 (the Fund ). The information and statements in this Presentation were prepared or are made only as of the date of this Presentation, unless otherwise stated. This Presentation contains general and summary information about the current and currently proposed activities of GARDA. It doe s not purport to be complete or contain all information which would be relevant to GDF stapled securities, or existing or prospective investors of GARDA. Other than as required by law, no member of the Group or any of their related ent ities and their respective directors, employees, officers or advisers give any warranties in relation to the statements and information contained in or referred to in this Presentation. This Presentation has been compiled from sources which GARDA believes to be reliable. However, it is not audited, and is not a p rospectus, product disclosure statement or other disclosure document ( Disclosure Document ) as defined in the Corporations Act 2001 ( Cth ) ( Corporations Act ), and has not been lodged with the Australian Securities and Investments Commission ( ASIC ). It is not, nor does it purport to be, complete or include all the information that a disclosure document may contain. Historical financial and other ‘continuous disclosure’ information required by law can be fou nd at the GARDA website www.gardaproperty.com.au and in the financial statements (also available on the website). Nothing contained in the Presentation constitutes investment, legal, tax or other advice. It is not an offer of securities, o r a recommendation to buy or sell securities in GARDA. It has been prepared for general information only, and without taking into account the investment objectives, financial situation or needs of individuals. Any existing or prospecti ve investor should not rely on this Presentation, but consider the appropriateness of the information in any product disclosure statement ( PDS ) or other public sources having regard to their own objectives, financial situation and needs and seek appropriate advice, i ncl uding financial, legal and taxation advice appropriate to their jurisdiction. GARDA does not guarantee any particular rate of return or the performance of the Group, nor does it guarantee the repayment of capi tal or any particular tax treatment. This Presentation contains certain “forward looking statements” with respect to the financial condition, results of operation s a nd business relating to the Group. These forward looking statements may involve subjective judgments. The words “forecast”, “estimate”, “likely”, “anticipate”, “believe”, “expect”, “project”, “opinion”, “predict”, “outlook”, “guida nce ”, “intend”, “should”, “could”, “may”, “strategy”, “target”, “plan” and other similar expressions are intended to identify forward looking statements. The forward looking statements are by their nature subject to significant and unknown risks, uncert ainties, vagaries and contingencies, many (if not all) of which are outside the control of members of the Group. Various risk factors may cause the actual results or performance of the Group to be materially different from any future results or performance expressed or implied by such forward looking statements. There can be no assurance that any forward looking statements are attainable or will be realised. Past performance should also not be relied upo n as being indicative of future performance. No representation, warranty or guarantee, whether express or implied, is made or given by any member of the Group that any forward looking statement will or is likely to be achieved. Exc ept as required by law, GARDA is not liable to release updates to the forward looking statements to reflect any changes. A number of figures, amounts, percentages, prices, estimates, calculations of value and fractions in this Presentation are su bje ct to the effect of rounding. Accordingly, the actual calculation of these figures, amounts, percentages, prices, estimates, calculations of value and fractions may differ from the figures, amounts, percentages, prices, estimates, cal culations of value and fractions set out in this Presentation. All references to dollars or $ in this Presentation are to Australian currency. To the maximum extent permitted by law, any and all liability in respect of the Presentation (and any forward looking stateme nt) is expressly excluded, including, without limitation, any liability arising from fault or negligence, for any direct, indirect or consequential loss or damage arising from any loss whatsoever arising from the use of the information in thi s Presentation or otherwise arising in connection with it. GARDA is listed on the Australian Securities Exchange ( ASX ) and all applicable obligations and restrictions contained in (without limitation) the ASX Listing Rules and Corporations Ac t a pply accordingly. The acknowledgements referred to above may be pleaded as a bar to any claim that any reader may bring. Persons who come into possession of this Presentation (including through a website) who are not in Australia should seek advi ce on and observe any legal restrictions on distribution in their own jurisdiction. Distribution of this Presentation outside of Australia (whether electronically or otherwise) may be restricted by law. Persons who receive this Pr ese ntation outside of Australia are required to observe any such restrictions. Failure to comply with such restrictions may find you in violation of applicable securities laws | 2021 Results Presentation CONTENTS | 2021 Results Presentation INTRODUCTION 4 Overview – Financial | Overview - Property HIGHLIGHTS 7 Valuations | NTA | Development Acquisitions | Asset Sales | Leasing PROPERTY 18 Metrics | Portfolio Overview FINANCE 21 Capital Management | FFO | Income Statement | Balance Sheet | Guidance Botanicca 9, Richmond INTRODUCTION | 2021 Results Presentation 1 - 9 Kellar St, Berrinba $1.45 NTA PER SECURITY 5 GROUP OVERVIEW FINANCIAL METRICS Return Profile | 2021 Results Presentation $ 317 M illion 1 MARKET CAPITALISATION Balance Sheet 5.6 % 2 FY22 FORECAST DPU YIELD 29% FY21 RETURN ON EQUITY 35 % FY21 TOTAL SHAREHOLDER RETURN 85% - 90% FY22 FORECAST PAYOUT RATIO 38.4% GEARING 4.1 times INTEREST COVER RATIO 1. Mark capitalisation based on GARDA’s 11 August 2021 ASX closing price of $1.395 per security. 2. Calculated as the FY22 forecast distribution rate of $0.072 per security divided by GARDA’s ASX 1 July 2021 opening price of $1.285 per security. ~160,000 m² ‘BUILD TO OWN’ DEVELOPMENT PIPELINE GFA 6 GROUP OVERVIEW PROPERTY METRICS Portfolio Metrics 5.78 % CAP RATE 5.5 Years WALE 91 % OCCUPANCY ~137,000m² PORTFOLIO NLA | 2021 Results Presentation $ 496 M illion 1 PORTFOLIO VALUE Real Estate Platform 17 PROPERTIES 3.2% FIXED ANNUAL RENT INCREASES 1. Pro - forma portfolio value totals $491 million. The value excludes Lytton ($10.7m and held for sale), valued accretive capital expenditure ($2.8m) and a small land parcel in Townsville ($1.2m) . It includes Richlands acquisition ($6.8m) due to settle in September 2021 and the third site of the Pinnacle East land acquisition ($2.8m ) t hat settled in July 2021. All property portfolio metrics are based of the pro - forma portfolio. FY21 HIGHLIGHTS | 2021 Results Presentation 41 Bivouac Place, Wacol Increase in Property Valuations HIGHLIGHTS KEY OPERATIONAL OUTCOMES - FY21 8 $30.6 Million Proceeds from 3 Asset Sales ‘Build to Own’ Development Pipeline Active Management - Leasing | 2021 Results Presentation ~160,000 m² INCREASED BY 124,000m² $56.0m | 22% VALUATION UPLIFT 14% Premium TO BOOK VALUE 26,160m² | 19% NLA LEASED OR PRE - COMMITTED PROPERTY PERFORMANCE 22% INCREASE IN INDEPENDENT V ALUATIONS 9 ? GARDA’s active management, in conjunction with continued strong market fundamentals drove a $56.0 million valuation increase. ? As a result of the revaluations, NTA per security increased $0.25 per security, or 21%, to $1.45 per security. ? The North Lakes acquisition was revalued in June 2021 resulting in a $4.0 million increase on its acquisition price of $16.0 million. ? The independent valuation program included nine of GARDA’s 16 investment properties. ? The portfolio weighted average capitalisation rate (WACR) compressed 65 basis points to 5.78%. ? The commercial WACR is 5.96% and industrial is 5.56%. ? Since the April valuations, a number of market transactions indicate strong tailwinds, signalling continued higher growth in asset prices. ? GARDA intends to revalue portfolio assets again in October 2021. $56.0m VALUATION UPLIFT | 2021 Results Presentation 5.78 % CAP RATE 7 - 19 Lake St, Cairns NET TANGIBLE ASSETS REVALUATIONS RESULTED IN A 23% INCREASE IN NTA PER SECURITY TO $1.45 10 $1.18 $1.45 $0.10 $0.01 $0.35 $0.02 $1.00 $1.10 $1.20 $1.30 $1.40 $1.50 $1.60 30-Jun-20 Net gain in fair value of investment properties Capital works Acquisition costs Interest rate swap positive movement 30-Jun-21 NTA ($) per Security Fall Rise | 2021 Results Presentation 11 6,214 6,000 7,830 15,265 3,000 13,000 13,000 98,000 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Acacia Ridge Stage 1A Acacia Ridge Stage 1B Wacol Building B Acacia Ridge Stage 2 Wacol Building A Richlands (new) Wacol (new) North Lakes (new) (m 2 ) INDUSTRIAL DEVELOPMENT PIPELINE GFA DELIVERY Under Construction Existing Pipeline New Pipeline Acquisitions | 2021 Results Presentation ‘BUILD TO OWN’ INDUSTRIAL DEVELOPMENT PIPELINE INCREASED BY 124,000m² DURING FY21 ‘BUILD TO OWN’ INDUSTRIAL DEVELOPMENT PIPELINE DELIVERY OVERVIEW 12 Property Property Value ($m) Activity Estimated Costs ($m) Duration Comments Start 69 Peterkin Street, Acacia Ridge $11.0m 6,214m² warehouse $6m remaining 4 months remaining Pre - committed to Austrans , due for completion Dec 21. Can stand further 6,000m² expansion 4th Qtr FY21 38 - 56 Peterkin Street, Acacia Ridge $13.2m Demolition & 15,000m² warehouse construction $16m 12 - 15 months Site able to be demolished upon completion of 69 Peterkin Street. 3rd Qtr FY22 Pinnacle on Progress West - 498 Progress Rd, Wacol $9.8m 8,000m² warehouse construction ( Building B) $6m 6 months Speculative build or pre - commit. Land value includes balance land for 3,500m² Bldg A. 3 - 4Qtr FY22 Pinnacle on Progress East - 372 - 402 Progress Rd, Wacol $7.2m Bulk earth & civil works - 4ha $5m 6 months Pinnacle on Progress East will support 13,000m² of GFA. Construction possible in FY23. 3 - 4Qtr FY22 56 - 72 Bandara St, Richlands $6.8m ~15,000m² warehouse construction $15m 9 - 12 months 3ha site due to settle in Sept 21. Speculative build or pre - commit. 3 - 4Qtr FY22 109 - 135 Boundary Road, North Lakes $20.0 Bulk earth & civil works - 32ha $20m 9 - 12 months Site will yield 22.5ha of land, supporting 98,000m² of GFA in the future. 4th Qtr FY22 $68.0m $68m | 2021 Results Presentation ACQUISITIONS 3 X INDUSTRIAL DEVELOPMENT SITES 13 109 - 135 Boundary Road, North Lakes North Lakes is positioned to provide ready connectivity to major business centres and national road, air and rail networks. Situated alongside the Bruce Highway / M1 and near the Gateway Motorway, the subject site sits 32km north of Brisbane’s CBD, 40 minutes drive from the Sunshine Coast and only 22 minutes from both Brisbane domestic and international airports. ? GARDA acquired the 32.38 hectare land parcel in June 2021 for $16.0 million (plus costs). ? North Lakes has since been independently valued on an ‘as is’ basis for $20.0 million. ? GARDA intends to develop a master planned industrial park for small, medium and large customers. ? It is anticipated that all relevant town planning approvals and construction permits will be received by Q4FY22. ? Bulk earth and civil works will then commence and is expected to take approximately 12 months to complete prior to construction of the industrial facilities. ? On completion of the bulk earth and civil works and allocations for internal roads and green space, the site will provide 22.4 hectares of net developable industrial land, delivering a potential 98,000m² of built form GFA. 98,000m² COMPLETED GFA | 2021 Results Presentation ACQUISITIONS 3 X INDUSTRIAL DEVELOPMENT SITES 14 372 - 402 Progress Road, Wacol (Pinnacle East) Wacol is an established industrial suburb, 21km by road south - west of the Brisbane CBD. The 4.1 hectare site is located on Progress Road, a major dual lane arterial road connecting to both the Ipswich Motorway and Centenary Highway (and Logan Motorway). The site is adjacent to GARDA’s existing site ‘Pinnacle West’. ? GARDA acquired three adjoining land parcels across three settlements for a total consideration of $7.2 million (plus costs) between May 2021 and July 2021. ? The amalgamated site comprises 41,250m² of land that will provide approximately 13,000m² of GFA when the two planned industrial buildings are developed. ? Development approval for the site is anticipated in the first half of CY2022 with civil works to be completed in the second and third quarters. ? The new site will complement the existing Wacol site with completion of civil works and commencement of construction expected to align with construction completion of Buildings A and B at ‘Pinnacle West’. 13,000m² COMPLETED GFA | 2021 Results Presentation ACQUISITIONS 3 X INDUSTRIAL DEVELOPMENT SITES 15 56 - 72 Bandara Street, Richlands Richlands is an established industrial suburb, 21km by road south - west of the Brisbane CBD. Richlands borders Wacol with the same quality access to the Ipswich Motorway and Centenary Highway, via Progress Rd. The site on Bandara Street backs onto the Metroplex Westgate industrial precinct. ? The purchase price for the 30,351m² land parcel is $6.8 million (plus costs). ? Richlands is due to settle on 23 September 2021. ? Bandara Street itself is currently undergoing significant development with 40,000m² of industrial buildings currently under construction. ? Bandara Street is not an arterial road and therefore provides a price competitive site with excellent access to various road networks, ideal for competing for pre - commit tenants. ? The site is flat and development ready with negligible preparation costs anticipated. ? On completion, the site is expected to deliver approximately 13,000m² of GFA. | 2021 Results Presentation 13,000m² COMPLETED GFA ASSET DISPOSALS $30.6 MILLION OF CAPITAL RECYCLED AT A 14% PREMIUM TO BOOK VALUES 16 839 Beaudesert Rd, Archerfield ? Archerfield settled on 14 April 2021 for a sale price of $7.0 million, representing a 12.9% premium to the property's independent valuation of $6.2 million. ? Archerfield was acquired in July 2019 as part of a portfolio of established industrial assets. The other three assets located at Acacia Ridge are at varying stages of re - development. 154 Varsity Pde, Varsity Lakes ? Varsity Lakes settled on 4 May 2021 for a sale price of $12.6 million, representing a 5.0% premium to the property's independent valuation of $12.0 million. ? GARDA had previously indicated it intended to sell the small commercial office asset. ? At settlement, the building was 60% occupied (by gross income) with a relatively short WALE of 2.0 years. 142 Benjamin Place, Lytton ? Lytton is under contract for $11.0 million, representing a 26.1% premium to the property’s independent valuation of $8.725 million. ? GARDA is currently completing a rectification works program. ? Settlement is due to occur in September 2021. | 2021 Results Presentation LEASING 26,160m² LEASED, REPRESENTING 19% OF NLA 17 ? 26,160m² has been leased or pre - committed since July 2020, representing 19% of current portfolio NLA. • 11,694m² of leasing at completed industrial developments located at Berrinba and Wacol (Pinnacle West - Bldg C). • 6,214m² of finalised pre - committed leasing at Acacia Ridge stage 1A. • 8,525m² of established office leased / finalised. ? Following long term leases in Cairns to Civil Aviation Safety Authority (CASA) and Queensland Government, represented by Hous ing and Public Works, Cairns occupancy has increased to 95% (from 88% at 31 December 2020) with a 4.7 year WALE. ? Following a number of leases commencing at Botanicca 9 (Melbourne), the asset is now 46% occupied with 4,260m² being actively marketed for rent. ? Limited FY22 expiry with an additional 5,587m², or 5% of portfolio gross income, becoming available. 4,465m² of this expiry is Austrans ’ current tenancy at 38 Peterkin St, Acacia Ridge. ? Austrans has pre - committed to Stage 1A of the Acacia Ridge development and its soon to expire 4,465m² will then allow GARDA to demolish both buildings at 38 and 56 Peterkin Street which form Stage 2 of the development. | 2021 Results Presentation 7 - 19 Lake St, Cairns 1 - 9 Kellar St, Berrinba PROPERTY PORTFOLIO | 2021 Results Presentation Botanicca 9, Richmond TOTAL PROPERTY OVERVIEW 19 Top 10 Tenants 48% 39% 13% Sector (by Value) Office Industrial Land / Industrial Development 18% 7% 44% 31% Geography (by value) Cairns Mackay Brisbane Melbourne 9% 5% 9% 8% 12% 57% Vacant FY22 FY23 FY24 FY25 FY26+ Lease Expiry (by income) ~137,000m² PORTFOLIO NLA ~160,000m² ‘BUILD TO OWN’ DEVELOPMENT PIPELINE Tenant Property Gross Income (%) J Blackwoods & Sons Mackay 9.9% Planet Innovation Box Hill 9.9% Volvo Group Wacol 9.4% Komatsu Morningside 6.8% Golder Associates Richmond 6.5% Pinkenba Operations Pinkenba 5.7% Qld Gov (DTMR) Cairns 5.3% Fujifilm Botanicca 9 5.1% Fulton Hogan Botanicca 7 3.7% McLardy McShane Botanicca 7 3.5% Top 10 Portfolio Tenants 65.8% | 2021 Results Presentation PROPERTY PORTFOLIO INTEGRATED, COMMERCIAL AND INDUSTRIAL PROPERTY PLATFORM 20 | 2021 Results Presentation FINANCE | 2021 Results Presentation 41 Bivouac Pl, Wacol CAPITAL MANAGEMENT STRONG CASH POSITION AND DEBT FACILITY HEADROOM 22 ? Strong cash position at 30 June 2021 with $15.5 million in cash. ? On 15 June 2021, GARDA secured a $28.0 million increase in its existing common terms debt facility to a limit of $228.0 million. ? At 30 June 2021, the facility was drawn to $210.0 million, providing a further $18 million in headroom. ? GARDA’s fully drawn all in cost of debt has improved slightly to 2.2%. ? Group gearing is 38.4%. ? GARDA’s has $100 million in long term interest rates swaps including: • $70 million for 7 years at 0.81%; and • $30 million for 10 years at 0.98%. ? Positive long term benchmark rate movement since entering these derivatives in March 2020 has resulted in a $2.0 million balance sheet asset from interest rate swap mark - to - market. ? Strong interest cover ratio of 4.1 times. ? GARDA continues to hold 4.2 million ‘treasury securities’ and 14.8 million employee security plan (ESP) securities. Key Debt Metrics – 30 June 2021 Total debt facilities $228 million Drawn Debt $210 million Cash $15.5 million Weighted average cost of debt (fully drawn) 2.2% Weighted average debt duration 1.7 years Hedge d debt $100 million Weighted average hedge duration 6.6 years Gearing 38.4% 50% 50% Participating Lenders STG ANZ 44% 56% Hedge Profile Fixed Variable | 2021 Results Presentation FUNDS FROM OPERATIONS 1 23 1. FFO (Funds from Operations) is the Group’s underlying and recurring earnings from its operations . It is determined by adjusting statutory net profit (under AIFRS) for certain non - cash and other one - off items . FFO is not recognised or covered by Australian Accounting Standards and has not been audited or reviewed by the auditor of the Group . 2. GARDA’s purchases of 56 and 69 Peterkin Street, Acacia Ridge on 5 July 2019 included provision for the receipt by GARDA of $ 2 , 000 , 000 in rental guarantees at any time in the subsequent two years . In accordance with Australian Accounting Standards, this amount was recorded as an asset in GARDA’s FY 20 financial statements . In July 2020 , GARDA released the rental guarantee into general funds . The Directors consider the rental guarantee to be part of underlying FY 21 earnings warranting inclusion in reported FFO . 3. Pursuant to Australian Accounting Standards, treasury securities and employee share plan securities and the distributions attaching thereto are not included in statutory accounts . The same approach has been adopted in FY 21 by GARDA for the purposes of calculating FFO, requiring an adjustment to FFO reported in FY 20 . 2021 $000 2020 $000 Net profit after tax 35,689 5,567 Adjustments for non - cash items included in net profit after tax: Valuations – (deduct increases) / add back decreases: Investment properties (50,671) 6,996 Derivatives (3,593) 1,425 Goodwill 33,586 - Asset disposals – (deduct gains) / add back losses: Investment properties (881) - Other accounting reversals – (deduct income) / add back expenses: Security based payments 740 444 Net lease contract and rental items (644) (730) Other 60 (14) Adjustments for one - off items: Add rental guarantee income 2 2,000 - Add back internalisation expenses - 1,268 Add back capitalised interest relating to development properties - 724 Deduct COVID - 19 government grants (119) - FFO 3 16,167 15,680 FFO per security (cents) 7.8 8.2 Distributions 15,017 16,430 Distributions per security (cents) 7.2 8.6 Payout ratio 92.9% 104.8% Tax Advantaged Distribution Component 77.3% 85.2% | 2021 Results Presentation 7 - 19 Lake St, Cairns INCOME STATEMENT 24 2021 $000 2020 $000 Revenue Revenue from ordinary activities ? 30,481 29,116 Other income ? 243 1,172 Net gain on sale of investment properties 881 - Net gain in fair value of financial instrument ? 3,593 - Net gain in fair value of investment properties 50,671 - Total revenue 85,869 30,288 Expenses Property expenses ? (6,814) (6,368) Finance costs (3,753) (3,801) Employee benefits expense ? (3,308) (1,520) Corporate and trust administration expenses ? (1,748) (2,836) Internalisation expenses - (155) Depreciation (175) (1,269) Goodwill impairment expense ? (33,586) - Credit loss expense (369) - Security based payments expense ? (740) (444) Net loss in fair value of financial instrument - (1,425) Net loss in fair value of investment properties - (6,996) Total expenses (50,493) (24,814) Profit before income tax 35,376 5,474 Income tax benefit 313 93 Profit after income tax 35,689 5,567 ? Revenue increased by approximately $1.4 million, largely due to: • Interest and fees received from debt advisory and loans provided to external parties ($0.9 million); and • leases commencing following development, positive leasing outcomes and an increase in recovery income ($0.5 million). ? Prior comparative period included $0.5 million in litigation proceeds and sundry income, including: • $0.35 million for tenant m ake good cash payments that weren’t required to be utilised; and • $0.23 million in incentives and guarantees that were held but not required to be paid to the purchaser of Murarrie. ? Movement in the valuation of $100 million of interest rates swaps. ? Increased property expenses following completion of industrial development projects at Berrinb a and Wacol. ? Prior comparative period included only seven months of corporate employee expenses following the internalisation in November 2019. ? Prior comparative period included $1.1 million in fees that are not charged under the new internalised structure. ? Impairment of goodwill associated with the acquisition of GARDA Capital Group in FY20 (the Internalisation). ? $0.7 million non - cash expenses arising from security based payments transactions associated with employee security plan (ESP) securities. The prior comparative period only included seven months of non - cash expenses following the internalisation. | 2021 Results Presentation BALANCE SHEET 25 2021 $000 2020 $000 Current assets Cash and cash equivalents 15,534 20,488 Receivables and other assets 3,723 5,291 Assets held for sale ? 10,675 - Non - current assets Investment properties ? 485,570 417,447 Deposits on investment properties 713 - Property, plant and equipment 41 54 Derivative financial instrument ? 2,057 - Right - of - use assets 270 403 Deferred tax assets 264 - Intangible assets - 33,586 Total assets 518,847 477,269 Current liabilities Trade and other payables 3,045 3,338 Contract liabilities ? 472 605 Distribution payable 3,754 3,763 Lease liabilities 122 115 Current tax liability - 2 Non - current liabilities Tenant security deposits 246 350 Borrowings ? 209,030 186,653 Derivative financial instrument ? - 1,536 Provisions 78 48 Lease liabilities 130 252 Deferred tax liability - 49 Total liabilities 216,877 196,711 Net assets 301,970 280,558 ? Industrial property located at Lytton, QLD due to settle in September 2021. ? Investment properties increased as a result of: • $50.7 million fair value increase following independent valuations; • $39.0 million in acquisitions and capital expenditure on properties under construction; • $18.2 million of investment properties sold; • $10.7 million in assets being moved to assets held for sale (as per note 1); and • $5.8 million in capital expenditure on investment properties. ? Positive $3.6 million mark - to - market movement of $100 million worth of interest rate swaps. ? Contract liabilities of $0.5 million represent the reversal of tenant rental pre - payments that have been in cash. ? Non - current borrowings increased by $22.4m during the reporting period which assisted in the completion of Wacol construction ( Bldg C), portfolio capital expenditure, acquisitions of North Lakes and Wacol (Pinnacle East). | 2021 Results Presentation GUIDANCE OUTLOOK FOR FY22 26 Operational Focus ? Complete construction of Stage 1A of the Acacia Ridge re - development with Austrans to commence its pre - commit lease in November 2021. ? Advance town planning and receive relevant approvals at North Lakes and Pinnacle on Progress – East, with planned bulk earths works and civil works to commence in Q4FY22. ? Settle the 30,351m² industrial land acquisition located at Richlands in September 2021. ? Continue engagement with potential pre - commit tenants for Richlands and Wacol ( Bldg B – Pinnacle West). ? Continue to focus on leasing the remaining 4,260m² of commercial office NLA at Botanicca 9. Distributions ? FY22 distribution guidance of $0.072 per security. ? Distributions of $0.018 per security to be paid quarterly. ? Expected tax advantaged income of between 50% and 60%. ? At the current ASX trading price of $1.395 per security, reflects a distribution yield of 5.2%. ? Full year payout ratio is expected between 85% and 90% of FFO. | 2021 Results Presentation 41 Bivouac Pl, Wacol GLOSSARY DEFINITIONS AND EXPLANATIONS 27 Item / Term Definition / Explanation FY22 Forecast DPU Yield Calculated as the FY22 forecast distribution rate of $0.072 per security divided by GARDA’s ASX 1 July 2021 opening price of $1. 285 per security. Gearing Calculated a total assets less cash, divided by, total interest bearing liabilities less cash. GFA Gross Floor Area. Lytton 142 Benjamin Place, Lytton which is due to settle in September 2021. NLA Net Lettable Area. NTA Net Tangible Assets. Pinnacle East Three separate parcels of industrial development land acquired and then amalgamated in May, June and July 2021, at 372 - 402 Progr ess Rd, Wacol . Pinnacle West Industrial estate currently under development at 498 Progress Rd, Wacol . Portfolio Value 30 June 2021 total property investment assets valued at $496.2m, including Lytton ($10.7m and held for sale), valued accreti ve capital expenditure ($2.8m) and a small land parcel in Townsville ($1.2m). Pro - forma Portfolio Value 30 June 2021 Portfolio Value of $496.2m plus Richlands acquisition ($6.8m) due to settle in September 2021 and the third site of the Pinnacle East land acquisition ($2.8m) that settled in July 2021, less Lytton, value accretive capital expenditure and Townsville. Return on Equity (ROE) June 2021 NTA per security ($1.45) less June 2020 NTA per security ($1.18), add FY21 distributions ($0.072), divided by June 20 NTA per security. Richlands 56 - 72 Bandara Street, Richlands which is due to settle on 23 September 2021. Total Shareholder Return (TSR) 30 June 2021 closing ASX security price ($1.285) less 30 June 2020 closing ASX security price of ($1.005), add FY21 distribu tio ns ($0.072), divided by June 2020 closing ASX security price. WALE Weighted Average Lease Expiry (by gross income). | 2021 Results Presentation w: gardaproperty.com.au e: info@gardaproperty.com.au Level 21, 12 Creek Street, Brisbane QLD 4000 p: +61 7 3002 5300 GPO Box 5270, Brisbane QLD 4001

More from Garda Diversified Property Fund


Join Listcorp to create a personalised news feed, follow your favourite companies, save useful news, and more.

By joining Listcorp you agree to our Terms & Conditions and Privacy Policy

Information on this Website is provided for general information purposes only and is not a substitute for professional advice. ASX Information (including company announcements and prices) is delayed by at least 20 minutes. JSE Information (including company announcements and prices) is delayed by at least 15 minutes. Reliance on the information you access on or from this Website is solely at your own risk. We make no representation or warranty in relation to the future performance of the companies that appear on this Website. Investment in securities involves risk and you should obtain independent professional legal, financial, investment or company advice before acting on any of the information you access on this Website. Using, browsing or otherwise accessing this Website is subject to our Terms and Conditions and our Privacy Policy.

© 2022 Listcorp. ABN 60 166 140 307

Never miss news from Garda Diversified Property Fund (ASX:GDF) when you join Listcorp.