Goodman Group (GMG) Earnings Call Transcript & Summary

Welcome security holders, proxy holders and guests. The Goodman Group Annual General Meetings will start shortly. [Operator Instructions] A virtual AGM online guide is available in the Investor Center on the Goodman website and includes step-by-step instructions on how to attend and participate in the meeting. The guide includes a phone number to call should you require assistance during the meeting. Today's meeting will now begin, hosted by Goodman Group Chairman, Mr. Stephen Johns.

Good morning, ladies and gentlemen. My name is Stephen Johns, Chairman of Goodman Group, and I now declare the Annual General Meetings of Goodman Group open. I'd like to begin by acknowledging the traditional custodians of the land on which we are meeting today and acknowledge my gratitude to the people of the Eora nation that we share this land my understanding of the cost of that sharing and my hope and belief that we can move to a place of equity, justice and partnership together. Here in the Goodman head office in Sydney, I'm joined by our CEO, Greg Goodman and 3 of our independent directors, Mark Johnson, Penny Winn and Phillip Pryke, along with Company Secretary, Carl Bicego. Joining us on the line are our non-city-based independent directors, Rebecca McGrath in Melbourne; Chris Green in New York; and David Collins in Hong Kong; and Executive Directors, Danny Peeters in Brussels; and Anthony Rozic here in Sydney. Eileen Hoggett from our auditors, KPMG, is also present here in our city office. Today's agenda will start with my Chairman's presentation, followed by a short video before I hand over to Greg Goodman, who will present his CEO address. We will then move to the formal business where we will handle questions and undertake voting before the meeting closes. I will now turn to the formal Chairman's address. Goodman delivered another very strong result in 2021 during a year of constant change, particularly with all the challenges posed by the pandemic. The increases in operating profit and earnings per security exceeded our initial market guidance and the substantial growth of assets under management and work in progress provides a strong platform for the future. The group's focus has been on remaining agile, embracing the opportunities presented to make changes for the better. Through our determination to create a more sustainable environment, we accelerated our environmental, social and governance targets, and redesigned the way our teams worked around the world to prioritize their safety and well-being in the short term while enabling greater diversity and flexibility in the longer term. Our response to the rise of the digital economy has also created positive momentum in the business across all markets. I attribute the group's success in these conditions to our strategy, which is being executed consistently by our leadership teams around the world. Goodman's business strategy is fit for purpose and all encompassing. Our property investment, ESG and remuneration strategies are all aligned with a clear focus on providing profitable and sustainable long-term outcomes. I believe one of Goodman's greatest strengths is our ability to balance the attention to detail required in compliance and risk management, which is fundamentally important to running a listed business with our entrepreneurial spirit, which remains undiminished. I largely credit this to the group's remuneration strategy that enables all of our people globally to see themselves as owners in the business, fostering not only an innovative culture but also creating a loyal and experienced team who remain engaged and committed to Goodman. Investing in high-quality locations for the long term has always been at the heart of Goodman's strategy, which has been refined over time to adapt to a changing world. Our asset sale program in recent years has allowed us to reinvest in infill markets, which we believe will lead to higher intensification of use and a greater focus on sustainability, in addition to providing superior investment returns. Customer demand outweigh supply to these properties, driven by the growing consumer expectation to have goods delivered faster. This demand accelerated during the pandemic, and we have seen significant growth in e-commerce penetration in all our markets. We have a patient and long-term approach to managing capital, and Goodman's overriding objective is to deliver sustainable profits underpinned by cash flow. Maintaining a strong balance sheet to secure financial sustainability remains central to the group's strategy. Our financial position is typified by low gearing levels and strong liquidity to provide Goodman with the ability to seize quality opportunities in markets as they arise as well as providing a safeguard during turbulent economic times. The group's strong relationship with its global investment partners, which are some of the world's largest interim funds who have co-invest with equipment around the world, further strengthens our financial position. The scale and complexity of our projects, resulting principally from our focus on infill markets leads to a significantly lower longer development time frames often exceeding 5 years. Similarly, our increased focus on ESG is aligned with our long-term financial sustainability. We expect our environmental and sustainability goals will take 5 to 10 years to implement. This will continue to evolve as we incorporate appropriate targets into our objectives over time. Given the long-term nature of Goodman's approach to real estate investment, the Board reviewed the group's remuneration arrangements to provide even greater alignment between security holders and our senior leadership team. The outcome is the introduction of a 10-year long-term incentive plan with the existing 5-year plan remaining in place for all other team members. This new plan is market leading. It has been designed to support our twin objectives of encouraging long-term decision-making and retaining key leaders in extremely competitive industrial markets around the world. For the first time, the plan also incorporates environmental and sustainability targets in assessing operational performance. As you'll see later in the meeting, the support for the remuneration report will fall short of the 75% threshold required to avoid a first strike. This is mainly due to different approaches in the method of valuing the proposed grants to executive directors under the new tenured plan. The Board has adopted an economical fair value measure to reflect the fact that the performance rights are subject to conditions tested over a 4-year period and which will take up to 10 years to best. A number of investors focus on the straightforward measure of face value, and I recognize that on this basis, they have considered the awards to the executive directors as overly generous. I'm disappointed in this outcome, given that in our view, the plan is a market-leading initiative designed to best align the interest of our investors with Goodman's long-term business strategy. Nevertheless, with this outcome in mind, the Board will review Goodman's remuneration strategy in the new year so that we can continue to incentivize our people to deliver on our strategy while also meeting the expectations of our security holders. At today's meeting, independent directors, Rebecca McGrath and David Collins together with Executive Director, Danny Peeters, will be standing for reelection. You will hear from them during the formal business section of the meeting in support of their reelection. Penny Winn has decided not to stand for reelects this year and will retire from the Board at the conclusion of today's meeting. On behalf of the Board, I'd like to extend my gratitude to Penny for her valuable contribution during her time with Goodman, and we wish her well in her future endeavors. As we seek to appoint a new director, we will look to maintain a diverse board, both in relation to gender and geographic representation and with the appropriate mix of skills. On behalf of the Board, I sincerely thank our people for their commitment and the determination in achieving excellent results in FY '21. I also extend my gratitude to you, our security holders, for your ongoing support of Goodman. Before I hand over to the group CEO, Greg Goodman, we will show you a short video to highlight Goodman's global strategy. Thank you very much. [Presentation]

Thank you, Stephen, and good morning. The world is changing. The way we live, shop and work has evolved. And industrial real estate is now recognized as essential infrastructure to support people's changing lifestyles in the digital economy. These are structural changes that Goodman has spent the last decade preparing for. We have positioned our portfolio to leverage the ongoing e-commerce and retail evolution and increased consumer expectations that go with it. Demand for high-quality locations close to consumers has never been greater. This is reflected in the strong results we saw in FY '21 and is continuing into this financial year, where we expect our assets under management to grow to over $70 billion. And at our quarterly market update, we announced that earnings per share for FY '22 would be up more than 15%. This is on what was an already solid result last year where we achieved an operating profit of $1.2 billion, which was up 15% on prior year and statutory profit of $3.3 billion. We are seeing higher levels of profitability across our business with our development workbook, a key highlight, now standing at $12.7 billion across 81 projects. We've accelerated our development activity due to the growth in the customer demand. This is strongest in -- for markets closest to consumers. These are the sites that are difficult to acquire, get through planning and complex to develop. Now because of this, they are scarce, more highly valued by our customers and achieve cash flow growth over time. They also help reduce our impact on the environment. Over the last decade, we've focused our expertise and repositioned our portfolio on infill locations and our developments on urban regeneration. Infill locations require higher intensity of land use to maximize the space. This often means developing mortgage storage properties. As customer demand rises, the intensity of the development will continually increase. Rising customer demand and our team's active property management has also positively impacted the underlying property fundamentals around the world. This has meant the high occupancy of 98.4% globally, including some markets where we had little to no space available. Rental growth is strong at 3.2% and average lease terms are growing as customers aim to secure our property for the long term. Longer leases are a function of our customers' wanting to lock in these strategic locations as well as get a return on the large investments we are making in technology. Technology is the enabler that would allow them to get more out of their buildings, greater efficiency, better utilization and overall faster speed to market. Investors also are increasingly being drawn to the industrial asset class, which is driving cap rate compression and coupled with strong rental growth, we are seeing increased valuations. Last year, we had $5.8 billion in valuation growth across group and partnerships. And we're expecting this year to be on par or slightly ahead of that number. This means positive results for our capital partners. Our partnerships have achieved average total returns close to 18% for the last year while maintaining a significant liquidity and low leverage. The partnerships this year are on track for another strong one. As the role of the digital economy grows in people's lives, our role as providers of essential infrastructure grows along with it. So too does our commitment to sustainability and the communities we live in. Three years into our 2030 sustainable strategy, we're already well ahead and are on our way to transitioning our business to a truly resilient and low carbon company. We've accelerated the scale and the timing of our sustainability goals, including achieving carbon-neutral operations 4 years ahead of our target. And significant progress has been made on our global solar installation program. We're currently focused on how to measure and decarbonize our development projects as this is where we can make a positive impact. This is backed by a significant capital investment with over $700 million earmarked over the next 5 years on sustainability initiatives from the group and our partnerships around the world. Spearheading our contribution to the community, the Goodman Foundation was extremely busy this year. We worked closely with our charity partners to support the most vulnerable through the pandemic. We invested more in the existing partnerships and brought on new organizations as new issues rose to the full. Importantly, our people around the world continue to be instrumental in the success of your company. As co-owners in the business, they take the long-term view. Yet another challenging year for the world, the determination, innovation and integrity they have showed in supporting our customers, investors and all stakeholders is valued and appreciated. So thank you to our teams around the world. In closing, we had a successful year on a number of fronts financially, and we're in a solid position. It's been a strong start to FY '22, and we are forecasting operating earnings per security growth in excess of 15% on FY '21. We are executing our strategy, focusing on infill markets to deliver sustainable opportunities for our customers and investors, while securing cash flow growth for the long term. And finally, I'd like to thank the Board, our investors and all our stakeholders for their ongoing support. Thank you, and we will now move to the formal business of the day.

A reminder that security holder questions will be addressed during the formal business section of today's meetings. [Operator Instructions]

[Audio Gap] the formal proceedings of the meeting. And Greg, thank you very much for a very informative and encouraging CEO address. The first item of business is consideration of the annual report and the accounts of Goodman Limited, Goodman Industrial Trust and Goodman Logistics Hong Kong Limited. I table a copy of the annual report before the meeting. Eileen Hoggett from KPMG, the auditors, is also available to answer any relevant questions in respect of the audit. I'll now respond to any questions submitted in relation to the annual report on the group's business. In this regard, I'm assisted by Alison Brink in moderating and asking the questions that have been submitted. Alison, are there any questions?

Yes, Mr. Chairman, we have a comment from the Australian Shareholders' Association regarding item A. The comment is, "The ASA congratulates the Goodman Group, its Board and management on yet another outstanding year with return to gain exceeding expectations and an ever strengthening outlook arising from rapid changes in global warehousing and logistics."

Thank you, Alison. And so I believe there are some other questions from the ASA, but we'll handle those later in the meeting when we get to the remuneration.

Correct.

Thank you. Are there any other questions on this item?

There are no other questions.

Well, there being no questions, or no further questions, we'll continue the meeting and go to general business. I'll now turn to the formal resolutions set out in the notice of meeting. And our fellow directors and I support the resolutions 1 through 8, put to security holders for consideration. To facilitate the orderly running of the meeting, I propose to combine the discussion and questions from resolutions 6, 7 and 8 relating to the grant of performance rights. After all the resolutions have been put to the meeting and discussed, I will display the proxy votes. In accordance with the Corporations Act and determinations made under our constitutions, each of today's resolutions will be decided by a poll. As you have been informed, voting is open and will close 10 minutes after the close of the meeting. Resolution 1. The first resolution for members to consider is to appoint KPMG as auditors of Goodman Logistics Hong Kong Limited and that its directors be authorized to fix the auditor's remuneration. This is a requirement that we deal with [ Angelie ] , which is acquired under these local requirements in Hong Kong. I now move that Resolution 1 be approved. I'll now address any questions submitted in relation to Resolution 1. Alison, are there any questions?

Mr. Chairman, there are no questions.

There being no questions, I'll then move to the next resolution. The second resolution for the meeting is to consider the reelection of Rebecca McGrath as a Director of Goodman Limited. You'll now hear from Rebecca, who will address the meeting in support of her reelection. Thank you, Rebecca.

Good morning, ladies and gentlemen. I have had the privilege of being a Non-Executive Director of Goodman since 2012 and have also taken on the roles of Chairman of the Risk and Compliance Committee and member of the Remuneration and Nomination Committees. The performance of the group during my time on the Board is something I have found most satisfying. It has also been very rewarding to you, our shareholders. The contemporary and well-planned strategy that has delivered strong and sustainable returns, coupled with prudent capital management, has seen the group emerge as one of the top 12 companies on the ASX. I largely attribute this success to Goodman's long-term vision and the commitment of the CEO and his high-caliber global team to consistently execute this strategy. Goodman is a modern company that is well positioned for the future, with a strategy reflecting on and leveraging the macro trends impacting our business and our stakeholders. These include urbanization, sustainability, and delivering on the rapidly growing needs of a digital economy. The group's strong focus on environmental, social and governance matters have been demonstrated through both our strategy and the policies that have been developed to support the long-term sustainable growth of the business. I believe in a strong focus on corporate governance and risk management and the transparency and the integrity that it demands. During my 9 years at Goodman, its transparent culture has allowed the Board to have open and dynamic discussions and add value in setting the long-term strategy. As mentioned earlier today, Goodman is either on track or deliver ahead of its targets outlined in the 2030 sustainability strategy. This strategy has been underpinned by a suite of improved policies under my stewardship as Chair of the Risk and Compliance Committee and endorsed by the Board. These new or updated policies include a sustainability statement with TCFD reporting of modern slavery statement, refreshed business ethics and code of conduct, a global safety framework and a contemporary risk management policy. I bring to the Board diverse international experience, having worked across a range of industries, including the energy and industrial sectors. My responsibilities on other Boards include being Chairman of OZ Minerals Limited and a Non-Executive Director of Macquarie Bank, Macquarie Group and the Investor Property Group. This provides me with a broad perspective on business and valuable insights into global markets, risk management, customer segments and industry best practice in some leading companies. I have been proud to be a Nonexecutive Director on the Goodman Board and seek your support for a further 3-year term. If reelected, I will continue to serve you diligently by working constructively with management and adding value to board deliberations while always maintaining a strong focus on corporate governance and risk management. Thank you very much.

Rebecca, thank you. I now move that resolution 2 be approved, and I'll address any questions submitted in relation to this resolution. Alison, are there any questions?

Mr. Chairman, there are no questions.

No questions. Thank you. Well, there being no questions, I'll move to the next resolution, which is resolution 3. The third resolution contains 2 parts and has the members to consider. Firstly, the reelection of Danny Peeters as a Director of Goodman Limited; and secondly, the reelection of Danny Peeters as a Director of Goodman Logistics Hong Kong Limited. Those are resolution 3A and 3B. You will now hear from Danny who will address the meeting in support of his reelection.

Thank you, Chairman, and good morning, ladies and gentlemen. I've had the pleasure of both working for Goodman since 2006 and being Executive Director of Goodman Group for the past 8 years. I'm honored today to be standing for reelection to the Goodman boards. I've worked in the property and logistics sector for 30 years. And I'm a director of a number of Goodman's funds management entities, subsidiaries and partnerships in Europe and Brazil. As part of my role, I oversee Goodman's Brazilian business. Together with the local management teams, I'm directly responsible for the strategy and sustainable growth of this business. Aligned to the group's strategy, the focus is on developing modern high-quality properties that deliver on the needs of the rapidly growing digital economy in Brazil. While e-commerce penetration has been slow to develop in Brazil, it is projected to grow by 80% in the 5 years to 2025. Our team is leveraging our international experience to help position us to seize those opportunities as they arise. At the same time, I focused on bringing the same high standards of governance, risk management and sustainability that we apply across all our businesses. With Europe considered by many as innovators in ESG, our own European business leading the way in this area, my experience and insights have also helped set framework and priorities for the group's sustainability strategy. I greatly enjoy working for Goodman and contributing as a member of the Board. I believe its down to heart and open culture has been a large contributor to its success. This has been particularly apparent during the past 18 months, where the restrictions on travel forced us to rely more heavily on virtual communication and constructive work relationships that had been already established between team members in Goodman's global network. With over 60% of the group's earnings now sourced outside of Australia, I believe both my European and South American experience provides a different perspective and insight to the team as we continue to grow as a truly global company. If reelected to the Board, I remain committed to acting your interests and to add value to our business around the world. I'm generally excited by the opportunities that we are presented with and the challenges that this position offers. Thank you.

Danny, thank you very much. And as you've heard earlier in the meeting, Danny joins us from Brussels today, where I think it must be about midnight or 1:00 in the morning. But thank you, Danny. And I now move that resolutions 3A and 3B be approved. Are there any questions, Alison?

Mr. Chairman, there are no questions.

Thank you, Alison. There being no questions, then I will move to the next resolution, which is resolution 4. And this resolution is to consider the reelection of David Collins as the Director of Goodman Logistics Hong Kong Limited. And you'll now hear from David who will address the meeting in support of his reelection. Thank you, David.

Thank you, Chairman. I've been an independent Nonexecutive Director of Goodman Logistics Hong Kong Limited since February 2018 and I'm now seeking reappointment in that position. By way of background, I've spent most of my career in the accounting profession, starting with Pricewaterhouse in London and then some 27 years with KPMG in Hong Kong. I was a partner in the audit practice serving clients in Hong Kong and China across many industries and held a number of leadership roles in the firm, the last of which being Head of Risk Management. After retiring from KPMG in 2012, I've performed consulting work drawing on my accounting expertise, including assisting some NGOs and serving as an iNED. I am a Hong Kong permanent resident and continue to spend most of my time here. I have a strong knowledge of the local business, regulatory and social and geopolitical environment. My directorship of Goodman Logistics Hong Kong requires that I have good visibility of the affairs of the entire Goodman Group, owing to the interdependence of all the Goodman entities under the staking arrangement. And this is achieved by my access to the Goodman Board and committee meetings and papers as required as well as my interactions with the management. I've been most impressed with the high standard of corporate governance and reporting during my time on the board. And I believe my skills and experience will enable me to continue to make a strong contribution to support the company's continued success and maintaining its high standards of governance and compliance. I commit to performing my duties as an independent Nonexecutive Director in a diligent, robust and objective manner. I thank you for your continued support.

David, thank you very much indeed. I now move that resolution 4 be approved, and I'll address any questions which have been submitted or which are being submitted in relation to resolution 4. Alison, are there any questions?

Mr. Chairman, there are no questions.

Then I'll move to the next resolution, thank you, which is resolution #5. The fifth resolution of the meeting is to adopt the remuneration report for 2021. A voting exclusion applies to this resolution as set out in the notice of meetings. The directors and other key management personnel will not be voting any of their securities. I now move that solution which states that the remuneration report be adopted that, that resolution now be adopted for this meeting. And I know there are some questions to this, Alison? Could you...

Yes, Mr. Chairman. We have both a comment and a question from the ASA. The comment being, "The ASA supports the revised remuneration framework with extended testing periods but cannot support the use of economic value for the determination of the number of performance rights to be issued to executive directors as it significantly inflates the number of rights issues. At current security prices, the number of rights issued would be nearly 4x the number that would be issued under the usual practice of face value. At current security prices, the value of the award to the CEO is worth $37 million which compared with other successful companies as considered by the ASA to be excessive. A similar comment applies to the other executive directors. The new framework is likely to lead to similarly higher rights issues in future years, thereby compounding the generosity arising from the use of economic values. The question, why does Goodman Group continue to use economic value in place of -- in lieu face value when virtually no other major ASA company does so?"

Well, thank you very much for that question. And to a certain extent, I did cover this in my Chairman's address. But I think this is such an important question that I'd like to spend a bit more time to make sure that all of our security holders fully understand the decision that we have taken and certainly that the ASA's membership can be fully informed. So let me say at outset that we, as a Board and as a company, recognize that face value is often and regularly used in assessing the value performance rights in the market. And just to be clear, face value is a very straightforward, simple measure where you take the number of performance rights and multiply it by the current share price at the time. And I would pass this as a headline number. And actually, I'd also suggest that it's relevant where you have very short-term plans. And most of the plans are 2 or 3 years. So I think majority of plans are 3 years in the market. And whilst economic value in our view, in my view, in particular, is still relevant for a 3-year plan, the materiality is not all that significant. And so I can fully understand and accept that where 3-year plans in the market, which is the norm, that face value is used because it's very simple and easy to understand by everybody involved. But Goodman has got a different situation. Historically, we've had a 5-year plan, which is considerably longer than 3 years. And now we've gone for our senior people to a 10-year plan, which is obviously much, much, much longer than the standard 2 or 3 year plan, which is in the market. And it is totally inappropriate, in my view and in the view of the Board to adopt a simple headline number using the current share price when there are very many variables to determine the true value of the plan. So the economic value, which I would classify as fair value in our view, needs to be ascertained and has always been used by Goodman in working out what we are providing to our executives and indeed what our executives believe that they're receiving in value. And for our own people, our senior people to sign up to a 10-year plan, which has brought enormous benefits for the Goodman Group, enormous benefits. They needed to understand and appreciate what they were getting, and they understand the value -- the economic value of what was being proposed. So if I can just, without going into too much unnecessary detail, say that when the Board calculated economic value, we thought and knew this would be a very significant matter for proxy advisers, for investors and for the market generally, that we would get expert, outside advice, and we've got advice from one of the major 4 accounting firms, not our auditors, one of the other 3 major firms. And we also got advice from 2 international investment banks as to whether we are on the right track, how we should assess the economic value and how we should calculate it. And so the bottom line of this, and I take the number that you've quoted there as $37 million. I'm not sure our third numbers of $33 million or $35 million, but less -- it's well into the $30 million. At the headline number, which is the face value number, let's take Greg Goodman, who is probably the best example, we are awarding him or proposed to award him 1,560,000 performance rights. If you take the share price at the 30th of June, which was $21.17 it's about $33 million of headline value. We've had a tremendous run since the 30th of June, we've gone up about 15% from $21.17 to over $24 a record in the market last night. That's probably a $37 million or $38 million of headline value, but that's not the value that we believe Greg has got. And based on the expert advice and our own assessments as a Board, we have assessed value at $9.5 million. Still a considerable sum, but that is well and truly within the realms of [indiscernible] an outstanding CEO should be achieving. And just to put a further perspective, Greg has a salary of $1.4 million, no short-term incentive and long-term -- and this long-term incentive award. And so well over 90% of his potential remuneration is in variable pay, which is subject to performance. So the question is very important. So the headline number looks overly generous and that's what I said in my Chairman's address. It looks overly generous because $35 million, $37 million, $38 million, whatever the number might be calculated on the day is a very large number. $9.5 million is also a large number, but it's well within the realms of what executives of Greg's caliber and success we've achieved. And I think that needs to be understood. So that is the difference of opinion. And the reason just to be specific in the answer to your question, and I do apologize for the length of this answer, but just to be very specific. The reason we take into account economic value rather than the headline face value is that this is a 10-year plan, is there's a 4-year testing period where stretched targets need to be achieved in order to get 100% success rate and is also the shareholders -- total shareholders' return, which is a market assessment, so there's a 4-year testing period. And then those -- whatever the rights are that would be assessed with Reg, and may not be 100% and maybe something less than 100% of what he is being awarded now. We'll only best over another 7 years from the end of the year 4 to the end of year 10. So we take into account -- an economic value takes into account the time value of money, the volatility of share price, the likelihood of achieving the maximum payouts, the fact that these performance rates do not get dividends until they actually vest. There are many, many factors and it's a complicated calculation. And so the simple straightforward calculation of face value certainly is easier to understand and may well be appropriate for short-term plans. But in our view, it's totally inappropriate for a 10-year plan. Alison, are there any other questions on the line?

There are no further questions Mr. Chairman.

Well, thank you very much. And I do apologize for the length of that answer just a moment ago, but I think it's exceptionally important for our security holders to understand why we've got criticism and certainly from some of our proxy advisers as to why we're being overly generous, because we certainly don't believe that's the case. Well, if there are no further questions on this matter, we'll go to the special business, which starts at Item 6, and it's items 6, 7 and 8. And they -- each of these resolutions relate to the grant of performance rights. A voting exclusion applies to these resolutions. And in summary, the executive directors cannot vote their securities on any of these 3 resolutions. We'll discuss any questions on these 3 resolutions after being formally put to the meeting. So the sixth resolution, as what I just mentioned a moment ago when talking about Greg Goodman, the sixth resolution of the meeting is to consider to the approval for all purposes, the grant of 1,560,000 10-year performance rights to and the acquisition of Goodman Group Securities by Greg Goodman, as described in the explanatory memorandum. I now move that, that resolution 6 be approved. Similarly, the seventh resolution of the meeting to consider is to approve, for all purposes, the grant of 625,000 10-year performance rights to and the acquisition of Goodman securities by Danny Peeters as described in the explanatory memorandum. I now move that resolution 7 be approved. Now the eighth resolution for the meeting is to consider -- for the meeting to consider is to approve for all purposes, the grant of 690,000 10-year performance rights to and the acquisition of Goodman Securities by Anthony Rozic, as described in the explanatory memorandum. I now move that resolution 8 be approved. I'll address any questions in relation to Resolution 6, 7 and 8 or 6 or 7 or 8, involving the grant of performance rights to Greg, Danny and Anthony. Alison, are there any questions on these 3 resolutions?

There are no questions, Mr. Chairman.

Well, thank you very much. And indeed, I think I did answer the main issue on that in the -- from my answer to the Australian Shareholders' Association a few minutes ago. So if there are no further questions, we'll move on. The proxy votes for resolutions 1 through 8 are now displayed on the screen. Please note that where open proxies are held by me as Chairman, I intend to vote undirected proxies in favor of each resolution. Resolutions 1 through 8 are also proposed as ordinary resolutions and will be approved if passed by more than 50% of the votes cast on the resolution. You'll see from the proxies on the screen that, in respect of number five, the adoption of remuneration report, the proxies are less than 75%, they stand at 58.32%. And the proxies for Resolutions 6, 7 and 8, which require a 50% half-mark so to speak are in mid-50s. So we will, of course, count all the rest of the votes from today's meeting, and we will announce the details of the final voting at the office to the ASX shortly after the conclusion of this meeting. As there is no other business to be considered, I thank you for your consideration today and now formally declare the meeting closed. Thank you very much, ladies and gentlemen.