Overall solid performance. Focus on sustainable and high-quality development projects in response to growing demand in supply-constrained markets, particularly in the data center segment. I think they're in a solid position to adapt to the evolving macroeconomic environment and hopefully take advantage.
Ann summarised below :
Operational Result:
- Quality development projects in high-entry-barrier locations and long-term drivers for the digital economy support growth outlook for FY24.
- Demand for properties in supply-constrained markets is high, driven by supply chain improvements and increased productivity needs.
- Unprecedented demand from data center users due to growth in cloud computing and AI.
Financial Highlights:
- $12.7 billion of development work in progress (WIP) across 80 projects.
- Completed $1.0 billion of developments in the quarter with 98% committed.
- 4.9% like-for-like net property income (NPI) growth on properties in partnerships.
- 99% occupancy across partnerships.
- $82.9 billion total assets under management (AUM).
- Forecast FY24 operating EPS growth of 9%.
Property Investment:
- Portfolio concentrated in supply-constrained markets, ensuring high occupancy and positive rental growth.
- Like-for-like NPI growth of 4.9%.
- Portfolio occupancy of 99%, weighted average lease expiry of 5.41 years.
- Leased 2.41 million sqm across the platform over the 12-month period.
- Expectations of consistent rent reversion to market, supporting NPI growth in future periods.
Development: - Focus on development-led growth strategy for productivity gains in supply chain.
- $12.7 billion development work in progress.
- High pre-commitments with 98% completions committed and 62% of WIP committed.
- 79% of WIP built for third parties or partnerships.
Data Centers:
- 3.7 GW power bank, including secured and potential data center projects.
- Approximately 25% of WIP represents data centers under construction.
Management Platform:
- Total AUM increased to $82.9 billion.
- Weighted average cap rate across the group and partnerships portfolios of 4.53%.
- Capital constraints in real estate have reduced competition, providing opportunities for growth.
Sustainability:
- 2030 Sustainability Strategy focuses on low-carbon and resilient business practices.
- High scores in the Global Real Estate Sustainability Benchmark (GRESB) across various entities.
- Commitment to sustainable assets, demonstrated by projects like the Marl Logistics Centre in Germany.
Outlook:
- Structural trends of the digital economy remain intact.
- Continued growth in data requirements creates strong demand for powered sites.
- Interest rates, credit, and inflation are key drivers of uncertainty, leading to volatility in real estate markets.
- Cautious and prudent approach provides resources and liquidity to manage through uncertain economic environments.
- Confirmed forecast FY24 operating EPS growth of 9% and a full-year distribution of 30cps.
(20min delay)