AI assistant
GARDA PROPERTY GROUP — Capital/Financing Update 2018
May 29, 2018
64972_rns_2018-05-29_181b9356-aaeb-4941-8e7d-ab66794e40be.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
==> picture [173 x 37] intentionally omitted <==
ASX Announcement / Media Release
GARDA Diversified Property Fund (GDF)
30 May 2018
FUND UPDATE
GARDA Capital Limited ( GARDA ) as responsible entity of GARDA Diversified Property Fund ( GDF or Fund ), is pleased to provide an update on leasing activity and property projects since last reported at half year. A summary is as follows:
-
Portfolio WALE[1] increases to 5.8 years and portfolio occupancy[1] remains stable at 95%
-
6,503m² of leasing recently completed, removing 9% of previously reported ‘at risk’ income due to expire in the first half of FY19
-
Wacol and Pinkenba industrial projects nearing practical completion with pre-committed leases expected to start in July 2018
-
Botanicca 9 office project is on schedule with excavation of basements progressing
LEASING
GARDA has recently finalised 6,503m² of leasing renewals:
| Property | Tenant | Term | Area | Building | Occupancy | WALE |
|---|---|---|---|---|---|---|
| (m²) | NLA (m²) | (yrs) | ||||
| Cairns | Qld State – DTMR | 3 years - 1 Dec 18 | 4,579 | 14,739 | 90% | 3.2 |
| Varsity Lakes | Serco | 5 years - 1 July 18 | 1,924 | 3,994 | 89% | 3.4 |
Following the positive leasing outcomes, the Fund’s portfolio WALE is 5.8 years and the portfolio occupancy is 95%.
AT RISK INCOME[2]
==> picture [447 x 128] intentionally omitted <==
----- Start of picture text ----- Botanicca 9 - 17%56%14%4% 3% 5%1%Vacant H1FY19 H2FY19 FY20 FY21 FY22+----- End of picture text -----
1 WALE and occupancy (by income) calculated as at 30 June 2018 for known leasing events, subject to documentation.
2 Portfolio expiry profile calculated including Botanicca 9, a building currently under construction that will be available for lease in Q4 FY19.
Level 21, 12 Creek Street, Brisbane QLD 4000[| ] GPO Box 5270, Brisbane QLD 4001 P. (07) 3002 5300[|] F. (07) 3002 5311[|] [email protected]
==> picture [173 x 37] intentionally omitted <==
PROJECTS UPDATE
Construction of the Wacol (Brisbane) industrial facility is well advanced and is expected to complete by the end of the current financial year. Volvo Group Australia will commence their 10 year lease by late July 2018 following completion of their fitout.
Construction of the Pinkenba (Brisbane) industrial facility is nearing practical completion. It is expected the tenant will begin their 15 year lease in mid-July 2018.
Botanicca 9, the Fund’s new 7,254m² office building in Richmond (Melbourne) is proceeding well with excavation continuing of the three level basement car parking. This building is anticipated to be completed 4Q FY19.
FY18 DISTRIBTUIONS
Distributions for FY18 will total 9 cents per unit, representing a current yield of 7.66%[3] . The final quarterly distribution will be announced by the end of June 2018 for distribution in August 2018.
EXECUTIVE CHAIRMAN’S COMMENT
Matthew Madsen, GARDA’s Executive Chairman commented:
“GARDA’s active management of its portfolio continues to deliver positive results with approximately 12,000m² of lettable area being leased this financial year. With only 4% of Fund income due to expire in the 2019 financial year, our major focus will be the marketing and leasing of our under construction Botanicca 9 (7,254m²) office project, in Richmond. The Melbourne City Fringe market is one of the tightest leasing markets in the country with only 2.5% vacancy and limited new uncommitted supply”.
-Ends-
For more information please contact:
Matthew Madsen Paul Brown Executive Chairman Manager, Investor Relations GARDA Capital Group GARDA Capital Group Phone: 07 3002 5300 Phone: 07 3002 5362 [email protected] [email protected]
3 Current yield calculated on ASX closing price of $1.175 on 29 May 2018.
Level 21, 12 Creek Street, Brisbane QLD 4000[| ] GPO Box 5270, Brisbane QLD 4001 P. (07) 3002 5300[|] F. (07) 3002 5311[|] [email protected]
==> picture [173 x 37] intentionally omitted <==
About GARDA Diversified Property Fund (ARSN 104 391 273)
GDF is an ASX listed real estate investment trust (REIT) which invests in commercial offices and industrial facilities along the eastern seaboard of Australia. GDF currently holds eleven assets, three of which are under construction. GDF’s property portfolio is independently valued at $305 million.
About GARDA Capital Limited
GARDA Capital Group is an ASX listed (ASX: GCM) real estate investment and funds management group. The GARDA Capital Group is co-invested in GDF holding a 13.5% stake.
GARDA Capital Limited is the responsible entity of GDF, is a member of the GARDA Capital Group and holds AFSL 246714 which permits it to act as the responsible entity for GDF.
Level 21, 12 Creek Street, Brisbane QLD 4000[| ] GPO Box 5270, Brisbane QLD 4001 P. (07) 3002 5300[|] F. (07) 3002 5311[|] [email protected]