THE GPT GROUP For personal use only
14 February 2022
2021 Annual Financial Report - GPT Management Holdings Limited
The GPT Group ('GPT') provides the 2021 Annual Financial Report for GPT Management Holdings Limited which is authorised for release by The GPT Group Board.
-ENDS-
For more information, please contact:
INVESTORS AND MEDIA Penny Berger
Head of Investor Relations and Corporate Affairs +61 402 079 955
Level 51, 25 Martin Place, Sydney NSW 2000 | www.gpt.com.au |
onlyuse personalForThis financial report covers both GPT Management Holdings Limited (the Company) as an individual entity and the Consolidated Entity consisting of
GPT Management Holdings Limited and its controlled entities.
GPT Management Holdings Limited is a company limited by shares, incorporated and domiciled in Australia.
Through GPT's internet site, GPT has ensured that its corporate reporting is timely, complete and available globally at minimum cost to the Company. All press releases, financial reports and other information is available on GPT's website: www.gpt.com.au.
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GPT MANAGEMENT HOLDINGS LIMITED AND ITS CONTROLLED ENTITIES
CONTENTS
Directors' Report ........................................................................................................................................................................................ | ||
only | ||
Auditor's Independence Declaration..................................................................................................................................................... | ||
Financial Statements ................................................................................................................................................................................. | ||
Consolidated Statement of Comprehensive Income .......................................................................................................................... | ||
Consolidated Statement of Financial Position ..................................................................................................................................... | ||
Consolidated Statement of Changes in Equity.................................................................................................................................... | ||
Consolidated Statement of Cash Flows ............................................................................................................................................... | ||
N | tes to the Financial Statements......................................................................................................................................................... | |
Result for the year........................................................................................................................................................................... | ||
use | 1. Segment information .................................................................................................................................................................... | |
Operating assets and liabilities................................................................................................................................................... | ||
2. Equity accounted investments | ||
3. Trade receivables.......................................................................................................................................................................... | ||
4. Intangible assets .......................................................................................................................................................................... | ||
5. Inventories...................................................................................................................................................................................... | ||
6. Property, plant and equipment .................................................................................................................................................... | ||
7. Other assets .................................................................................................................................................................................. | ||
8. Payables......................................................................................................................................................................................... | ||
personal | 9. Provisions....................................................................................................................................................................................... | |
10. Taxation ........................................................................................................................................................................................ | ||
Capital structure.............................................................................................................................................................................. | ||
11. Equity and reserves .................................................................................................................................................................... | ||
12. | Earnings per share .................................................................................................................................................................... | |
13. | Dividends paid and payable ...................................................................................................................................................... | |
14. | Borrowings .................................................................................................................................................................................. | |
15. | Financial risk management ...................................................................................................................................................... | |
Other disclosure items .................................................................................................................................................................. | ||
16. | Cash flow information................................................................................................................................................................. | |
17. | Commitments .............................................................................................................................................................................. | |
18. | Lease receivables....................................................................................................................................................................... | |
19. | Contingent liabilities.................................................................................................................................................................... | |
20. | Security based payments .......................................................................................................................................................... | |
21. | Related party transactions......................................................................................................................................................... | |
22. Auditors remuneration ................................................................................................................................................................ | ||
23. | Parent entity financial information ............................................................................................................................................ | |
24. | Fair value disclosures ................................................................................................................................................................ | |
25. | Change in accounting policy ..................................................................................................................................................... | |
26. Accounting policies ..................................................................................................................................................................... | ||
27. | Events subsequent to reporting date ...................................................................................................................................... | |
Di ectors' Declaration ............................................................................................................................................................................... | ||
For |
Independent Auditor's Report.................................................................................................................................................................
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GPT MANAGEMENT HOLDINGS LIMITED AND ITS CONTROLLED ENTITIES
DIRECTORS' REPORT
For the year ended 31 December 2021
The Directors of GPT Management Holdings Limited (the Company), present their report together with the financial statements of GPT Management Holdings Limited and its controlled entities (the Consolidated Entity) for the full year ended 31 December 2021. The Consolidated Entity is a for profit entity and is stapled to the General Property Trust (Trust). The GPT Group (GPT or the Group) financial statements include the results of the stapled entity as a whole.
GPT Management Holdings Limited is a company limited by shares, incorporated and domiciled in Australia. The registered office and principal place of business is Level 51, 25 Martin Place, Sydney NSW 2000.
onlyGPT is a vertically integrated diversified property group that owns and actively manages a $26.9 billion portfolio of high quality Australian office, logistics and retail assets. The Group leverages its real estate management platform to enhance returns through property development and funds management.
1. OPERATING AND FINANCIAL REVIEW
The Consolidated Entity's results are largely driven by the results of the Trust and the Wholesale Funds managed by the Consolidated Entity given that ma agement and other fees are driven by the asset value and performance of the underlying properties within these entities.
Ab ut GPT
Listed on the Australian Securities Exchange (ASX) since 1971, today The GPT Group is a constituent of the S&P/ASX 50 Index with a substantial useinv stor base of more than 32,000 securityholders.
GPT's vision is to be the most respected property company in Australia in the eyes of our investors, people, customers and communities. Our purpose is to create value for investors by providing high quality real estate spaces that enable people to excel and our customers and communities to prosper in a
u tainable way.
Review of operations and operating result
The Group commenced 2021 with solid momentum and expected to deliver an increase in Funds From Operations. Our interim results demonstrated that we were on track to deliver on these expectations however momentum was disrupted at the end of the second quarter when governments commenced instituting various measures to prevent the spread of the Delta variant of COVID-19 in the community. This culminated in restrictive lockdown measures that extended into the fourth quarter of 2021. The measures implemented by the New South Wales and Victorian governments also
personal | 31 Dec 20 |
inc uded the reintroduction of the Commercial Tenancy Code of Conduct requiring landlords to provide relief to eligible tenants in the form of rent waivers nd rent payment deferral. The impact was mainly felt across our Retail assets where only essential stores were able to continue trading. Leasing ctivity in the Office sector also slowed as customers delayed leasing decisions while most office staff were working from home. Pleasingly, our Logistics
portfolio remained resilient throughout the period. When restrictions eased, we saw a strong recovery in Retail rent collection and leasing activity across the Retail and Office portfolios.
Despite the lockdown measures; we continued to make good progress on implementing our strategy to increase our weighting to the Logistics sector, successfully completing several acquisitions and developments. Logistics now represents approximately 27 per cent of the Group's diversified property p rtf lio.
Office developments at 32 Smith and the GPT Wholesale Office Fund's Queen & Collins were completed during the year and the Fund's development at 51 Flinders Lane commenced in December. We progressed masterplans for mixed-use development schemes at Highpoint Shopping Centre and the Rou e Hill Town Centre. Post the period, we also announced the sale of a non-core retail asset Casuarina Square owned jointly by GPT and the GPT Wholesale Shopping Centre Fund.
The Group's gearing at the end of 2021 of 28.2 per cent remains below the mid-point of our target range of between 25 - 35 per cent, and our balance sheet liquidity position remains strong providing additional capacity for growth.
The Consolidated Entity's financial performance for the year ended 31 December 2021 is summarised below.
The net profit after tax for the year ended 31 December 2021 is $22,503,000 (2020: $67,373,000 loss).
31 Dec 21 | Restated(1) | Change | ||
$'000 | $'000 | % | ||
For | ||||
P operty management fees | 40,072 | 36,374 | 10 % | |
Development management fees and revenue | 18,773 | 19,693 | (5)% | |
Fund management fees | 99,810 | 83,647 | 19 % | |
Management costs recharged | 31,545 | 29,621 | 6 % | |
Proceeds from sale of inventory | 34,864 | 1,196 | 2,815 % | |
Other income | 982 | 4,706 | (79)% | |
Expenses | (203,992) | (232,536) | (12)% | |
Profit/(loss) from continuing operations before income tax expense | 22,054 | (57,299) | 138 % | |
Income tax credit/(expense) | 449 | (10,074) | (104)% | |
Net profit/(loss) for the year | 22,503 | (67,373) | 133 % |
- The comparatives have been restated to reflect the implementation of an IFRIC agenda decision, refer to note 25 for details.
Consolidated Entity result
The net profit after tax compared to the loss recognised 2021, combined with increased proceeds from the sale expense and impairment expense compared to 2020.
at 31 December 2020 is largely due to the revaluation increment of financial instruments in of inventory and higher fund management fees, partially offset by increased remuneration
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GPT MANAGEMENT HOLDINGS LIMITED AND ITS CONTROLLED ENTITIES
DIRECTORS' REPORT
For the year ended 31 December 2021
Property Management
Retail
The Consolidated Entity is responsible for property management activities across the retail sector. Property management fees increased to $22,357,000 in 2021 (2020: $19,969,000) primarily as a result of increased property revenue associated with lower impacts of the COVID-19 pandemic compared to 2020 including lower recognition of rent waivers for tenants affected by the pandemic.
Office
The Consolidated Entity is responsible for property management activities across the office sector. Property management fees increased to $14,448,000 in 2021 (2020: $13,520,000) primarily as a result of lower membership fee waivers provided to Space&Co members during the COVID-19 pandemic compared to the previous year and increased property management fees as more assets became operational.
Logistics | ||
The Consolidated Entity is responsible for property management activities across the logistics sector. Property management fees increased to | ||
$3,267,000 in 2021 (2020: $2,885,000) as a result of property acquisitions and the conversion of properties from development assets to operating | ||
onlyassets. | ||
Development management fees and revenue | ||
D | v | lopment management fees have decreased by 5 per cent to $18,773,000 (2020: $19,693,000) compared to the previous year primarily due to a |
d | cr | ase in development activity as a result of the impacts of the COVID-19 pandemic. There was lower utilisation amongst the teams with projects |
b | ing postponed, including the Melbourne Central Rooftop and the Rouse Hill developments, including the Rouse Hill developments held in inventory. | |
Funds Management | ||
GPT Wholesale Office Fund (GWOF) | ||
The f | nd delivered a one year equity IRR of 12.3 per cent. GWOF's total assets increased to $9.8 billion, up $0.8 billion from 31 December 2020. The | |
use | ||
management fee income earned from GWOF 31 December 2021increased by $1.8 million as compared to 31 December 2020 due to the increase in the | ||
value of the portfolio. |
personalGPT's ownership reduced slightly to 21.81 per cent (Dec 2020: 21.87 per cent) due to not participating in GWOF's Distribution Reinvestment Plan (DRP).
GPT Wholesale Shopping Centre Fund (GWSCF)
The fund delivered a one year equity IRR of 6.2 per cent. GWSCF's total assets decreased by $0.4 billion to $3.5 billion, compared to 31 December 2020 with the sale of Wollongong Central in December 2021. The management fee income earned from GWSCF decreased $1.5 million as compared to 31 December 2020 due to the decrease in the value of the portfolio in 2020.
GPT's ownership in GWSCF was unchanged at 28.48 per cent (Dec 2020: 28.48 per cent).
GPT QuadReal Logistics Trust (GQLT)
The GPT QuadReal Logistics Trust is a partnership with QuadReal Property Group to create a prime Australian logistics portfolio with an original $800 million target, that has since been expanded to $1 billion. A number of assets were secured for this partnership during the year with approximately 70 per cent of the $1 billion committed, inclusive of pipeline projects, with $0.2 billion deployed to December 2021 (100 per cent).
Management costs recharged
Management costs recharged increased by 6 per cent to $31,545,000 compared to previous year due to increasing costs at the corporate level passed onto the assets.
Proceeds from sale of inventory
Proceeds from sale of inventory increased sigificantly to $34,864,000 due to the compulsory acquisition of land at Rouse Hill and increased Metroplex sales during the year.
Other income
Other income decreased during the period to $982,000 primarily due to a decrease in the share of profit recognised from the Lendlease GPT (Rouse ForHill) Pty Limited joint venture as no sales were made during the year..
Expenses
Expenses have decreased by 12 per cent overall to $203,992,000 compared to previous year primarily due to the revaluation increment of financial arrangements, offset partially by an increase in remuneration expenses caused by the reinstatement of the bonus scheme in the current year and increased costs relating to the sale of inventory.
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The GPT Group published this content on 13 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 February 2022 22:31:02 UTC.
