Lendlease Group · ASX:LLC
Lendlease — Non-Deal Roadshow (July 2004)
104 slides from Lendlease's roadshow presentation, Jul 20, 2004
Slide 1: US Investor Roadshow — 15 & 16 July 2004
20 July 2004 The Manager The Manager Companies Section Companies Section Australian Stock Exchange Limited New Zealand Exchange Limited Pages: one hundred and four (104) pages Dear Sir STOCK EXCHANGE ANNOUNCEMENT LEND LEASE CORPORATION LIMITED US INVESTOR ROADSHOW — 15 & 16 JULY 2004 With reference
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Slide 3: The Court & The Plaza at King of Prussia
__ The Court & The Plaza _at King of Prussia
Slide 4: King of Prussia Mall, Pennsylvania
King of Prussia Mall, Pennsylvania _ Joint Owner: The Plaza 1961: ‘The Court 1981 2,850,000 50% 1996 ae / Ki namark. Associates : Largest enclosed retail shopping mall on the east coast of the Ss. 8 department stores 350 specialty shops 36 restaurants _
Slide 5: Ownership Structure
Ownership Structure ——-e Lend Lease King of Prussia Associates Kingmak Associates (50% partnership interest) rmouth Lend Lease KOP, Inc (50% partnership interest) Kravo Investments, Inc 32.5% interest Frost Family Trusts 22.5% interest Simon Property Group 80% interest Powell Family 20% interest Pow
Slide 6: Asset Valuation
———- Lend Lease Asset Valuation (US$m) Valuation Summary Property Free & Clear (1) June 30, 2003 $633.0 $ 46.4 June 30, 2004 $744.0 $47.2 Forward 12 Month Net Operating Income (2) Overall Average Rate of Return (OAR) 7.3% 6.3% Mortgage Balance ($210.8) ($201.6) $422.2 Equity Position of Partnership
Slide 7: Occupancy Summary
Occupancy Summary Lend Lease Gross Lettable Area (GLA) and Occupancy as of June 30, 2004 Land Area—126 Acres Owned Sq ft Unowned Sq ft Total Sq ft Occupancy % The Plaza In-Line GLA 744,589 96.9 JC Penney 171,558 100 Strawbridge’s 193,500 100 Neiman Marcus 138,775 100 Nordstrom 225,000 100 Sears 215,
Slide 8: In-Line Rollover
In-Line Rollover In-line Rollover Statistics — The Court & The Plaza Lend Leas Fiscal Year Sq ft Rolling* Percentage Rolling % Cum. Percentage % Vacant 36,640 3.70% 3.70% 2005 46,888 4.73% 8.43% 2006 173,820 17.54% 25.96% 2007 80,577 8.13% 34.09% 2008 93,421 9.42% 43.52% 2009 160,565 16.20% 59.72% 2
Slide 9: Historical Financial Analysis
Historical Financial Analysis Actual FY01 Actual FY02 —__— Lend Leas Actual FY03 Actual FY04 Avg. Effective Rent per sq ft ($) (1) 37.26 38.82 38.40 39.49 In-Line Occupancy (2) 91.9% 95.6% 94.1% 96.3% Net Operating Income (US$’000) 20,385 22,626 22,232 23,224 Interest Expense (US$000) (8,706) (8,427
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Slide 13: Lend Lease Locations
nd Lease Locat gegen ee Innere neaerl Ue ea ue ane eee I) vit COX Ewe Eo i a De 2D ee es Oo 7 ed UN J i De TAA = es ee Goue: eta : — Be ity 4 Fort Campbell = 4,255 homes i E: ae : ES Le ef i a
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Slide 23: - The Army F SS MINN clus.
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Slide 24: Residential Communities Initiative Agenda
ne RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) be AGENDA « The Case for Change e RCI Program Overview ~ Background ~ RCI Process ~ Successes ~ Remaining Projects / Others ~ Developer and Local (Large / Small) Business Participation ¢ Current
Slide 25: The Case for Change
RESIDENTIAL COMMUNITIES INITIATIVE Assistant Secretary of the Army (installations and Environment) THE CASE FOR CHANGE “Without the ability to attract and retain the best men and women the Armed Forces will not be able to do their job.” *_.. and perhaps mostimportant, we must forge anew compact with
Slide 26: The Case for Change — Initial Challenges
ne RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) be THE CASE FOR CHANGE -- INITIAL CHALLENGES « Identify Problem — Inadequate funding ($7B backlog of revitalization / deficit) — Bureaucratic Practices — Non-core competency e Examine Alternative
Slide 27: RCI Background
RESIDENTIAL COMMUNITIES INITIATIVE Assistant Secretary of the Army (installations and Environment) RCI BACKGROUND e 1992-1993 -- Get out of housing business -- not a core competency « Considered NAF Corporation for U.S. and Overseas Housing Authority ¢ 1996 -- Obtained legislation (MHPI authorities)
Slide 28: RCI Background 1998-2002
ne RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) be RCI BACKGROUND -- 1998-2002 e Streamlined process — Acquisition / RFQ — Community Development and Management Plan (CDMP) flexibility — Organization ¢ Staffed and trained workforce e Privatized
Slide 29: RCI Background — Our Focus
ne RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) be RCI BACKGROUND -- OUR FOCUS SOLUTION TO FIX FAMILY HOUSING IN THE U.S. VISION -- Quality residential communities on Flagship Installations GOAL -- Eliminate inadequate Family Housing in U.S. i
Slide 30: RCI Process
RESIDENTIAL COMMUNITIES INITIATIVE Assistant Secretary of the Army (installations and Environment) RCI PROCESS PROJECT CONCEPT TO TRANSFER Prepare / issue / see . Transition to Award RFQ* Develop CDMP™/ Notify Congress Partner Operations Obtai I Solicitation ain Approvals Oversee CDMP Execution ® De
Slide 31: RCI Process — CDMP Components
RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) be RCI PROCESS -- CDMP COMPONENTS DEVELOPMENT FINANCIAL PROPERTY PLAN PLAN MANAGEMENT PLAN e Master plan ° Life-cycle * Operations cash flow « Renovation / « Maintenance construction « Sources/ uses
Slide 32: Housing Area
RESIDENTIAL COMMUNITIES INITIATIVE Assistant Secretary of the Army (installations and Environment) Housing Area Yrs 21-30 Yrs 31-40 ak a LS Lee Yrs 41-50
Slide 33: RCI Process — CDMP Financial Waterfall
RESIDENTIAL COMMUNITIES INITIATIVE Assistant Secretary of the Army (installations and Environment) RCI PROCESS -- CDMP FINANCIAL WATERFALL AVERAGE PER MONTH PER UNIT/DWELLING BASED ON FORT HOOD FAMILY HOUSING FY 2005 BUDGET Basic Allowance for Housing (BAH) L,Utilities (20% of BAH) L, Operating Expe
Slide 34: RCI Process — What's Next?
ne RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) be RCI PROCESS ONCE CDMP IS DEVELOPED / APPROVED, WHAT'S NEXT? « Transition to partner e Real estate deal -- lease and conveyance e Partnership -- Limited Liability Corporation or Limited Liabili
Slide 35: RCI Process — Portfolio / Asset Management
ne RESIDENTIAL COMMUNITIES INITIATIVE Ay Assistant Secretary of the Army (installations and Environment) ba RCI PROCESS -- PORTFOLIO / ASSET MGT (PAM) PROTECTING INTERESTS FOR 50+ YEARS « Program designed to: - Monitor health of RCI Portfolio ~ Report to stakeholders on program and projects for next
Slide 36: Monitor and Protect Army Interests
RESIDENTIAL COMMUNITIES INITIATIVE Assistant Secretary of the Army (installations and Environment) Monitor and Protect Army Interests and Investment; Sustain Quality
Slide 37: Why Is Portfolio Management Needed?
ne RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) be WHY IS PORTFOLIO MANAGEMENT NEEDED? 71,000 Families 50 Plus Year ~~ \ : : ae ~-<No. Cost os $600 Million Direct Ground Lease: , po ~ Investment $8.5 Billion in .' : “Partner in 20 Minitial ~ o
Slide 38: RCI Process — Resulting Deals
ne RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) be RCI PROCESS -- RESULTING DEALS " Privatization projects are complex / multi-$B, 50-year deals « Army out-leases underlying land; transfers title of improvements « Partner collects rents equiva
Slide 39: RCI Plan — 45 Installations
RESIDENTIAL COMMUNITIES INITIATIVE Assistant Secretary of the Army (installations and Environment) RCI PLAN -- 45 INSTALLATIONS (35 PROJECTS) 83,303 Family Housing Units; >93% of U.S. Owned inventory ; | ak a LS Lee Projects Transferred (36.576 Houses) Ft Carson, CO - 1999 Ft Hood, TX- 2001 Ft Lewis
Slide 40: 14 Installations Transferred
RESIDENTIAL COMMUNITIES INITIATIVE Assistant Secretary of the Army (installations and Environment) 14 INSTALLATIONS (11 PROJS) TRANSFERRED Project (# Houses) vt Inv Initial Ft Carson $10.1M 1 $229M Ft Hood $52.0M 1 $266M Ft Lewis $0 1 $321M Ft Meade $0 | $460M Ft Bragg $49.4M 1 $447M Presidio of Mon
Slide 41: Before / After at Fort Hood
RESIDENTIAL COMMUNITIES INITIATIVE Assistant Secretary of the Army (installations and Environment) BEFORE / AFTER AT FORT HOOD 5,622 HOUSES TRANSFERRED TO PARTNER OCT 2001 Coe a ay i a ee LC yy LD Gy yy - Out of 290 deficit, 290 built a on . - 935 replacements / major renovations completed
Slide 42: 15 More Installations Awarded
ne RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) be 15 MORE INSTALLATIONS (9 PROJS) AWARDED Project (# Houses) Status Govt Invest / Initial Scope / Initial Period Walter Reed AMC-Ft Detrick 1963 GMH Selected Jul 2003 $1.2M ?$71M / 3-5 years Tra
Slide 43: RCI Program — 45 Installations
RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) be RCI PROGRAM -- 45 INSTALLATIONS (83,303 HOUSES; >93% OF ARMY'S U.S. INVENTORY) Northeast y 4 Pacific .. = Southwest : Southeast my, “Wert Shatter / Schofield Brks Projects Transferred fe 2004 / 2
Slide 44: Small Business Participation
RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) be SMALL BUSINESS PARTICIPATION e 2 of 9 RCI evaluative criteria involve small / disadvantaged business plans and usage e Partners hold several Small Business Forums; intent is to seek partnerships
Slide 45: Major Lessons Learned
RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) ky MAJOR LESSONS LEARNED * Projects are financially rewarding -- 1st 19 leveraging 18 to 1 e PAM oversight (HQ / Installation levels) paramount to RCI success e internal / external stakeholder invol
Slide 46: Success Is Not Without Its Challenges
RESIDENTIAL COMMUNITIES INITIATIVE aie Assistant Secretary of the Army (installations and Environment) ky SUCCESS IS NOT WITHOUT ITS CHALLENGES « $850M Investment Cap *« Taxation Determination — Increase / Eliminate Cap ¢ Utilities — Keep Current Scoring Rules — Privatization Impacts e Off-Post Adeq
Slide 47: The Future — Privatization of Army Lodging
ne RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) be THE FUTURE PRIVATIZATION OF ARMY LODGING (PAL) WHY PRIVATIZE? 2 FO « 80% of lodging requires replacement or renovation e Un-funded bill to fix lodging = $1B+ e PAL consistent with Leadership d
Slide 48: The Future — Unaccompanied Personnel Housing
ne RESIDENTIAL COMMUNITIES INITIATIVE Se Assistant Secretary of the Army (installations and Environment) be THE FUTURE UNACCOMPANIED PERSONNEL HOUSING PRIVATIZATION WHY CONSIDER PRIVATIZING? © Opportunity to consider whether benefits of RCI privatization are applicable to UPH MAJOR ISSUES e Mandator
Slide 49: Summary
RESIDENTIAL COMMUNITIES INITIATIVE Assistant Secretary of the Army (installations and Environment) SUMMARY Privatization: ¢ Fixes family housing in U.S. - provides quality communities e Shows positive results at first sites « Protects Army / Soldier / Family interests with a Portfolio and Asset Mana
Slide 50: Overview
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Slide 51: Project Locations
_ nano Project Pe HCA Fort Hood Ext Usiga: Sate Hors Hickarn AFB Dale Falls. 1,BS6 Maries Fort Campbell Tore Sirocizhe 4,288 Meera Jobn Perry VP Howneess tii Hecate mT m im I) ene ie eee) ee sian ith i Dae Hawaill Army ACT Harty Jackecr 7,700 Homes Aelia Pe cai ie Port Orum abode cL angi 2,516 Morus
Slide 52: Organization Roles
Deputy Asset Manager or Communications Director Housing Market Analyst Manag
Slide 53: Initial Development Period
—____________________ cE ee Initial Development Period : g years (2067 to 2006) i : ; New. Hones . is . 7 — ara i y a : hae Rerovated Homes - — 4622 Converted Homes (2s to 4-br) S16. a HH enh
Slide 54: Projected Gross Revenue
el EY It Projected Gross Reverus indiéal Development Period New Homa — Renivated Homes A years anus te 2007) Sot iat usi ng Su D li nan Hc TAT ICT nt
Slide 55: Projected Gross Revenue
Se __ Revers Pr 04 Projected Gross Feveran Fiat? Months of Gperatansy : ee me es : aay : : ; Tn initial Dewelopevent Period : 6 years {20058 to BOO) | iC | y a Nes ri ; . New Honma ae ; ag1 : \ Henewated Homes | . ab Local Beles Community Pacitinn:
Slide 56: Air Force Hawaii
ir Force Hawaii Ss Ac ru i evelopment Scope ita) Dewalapment Period hhew Home : Renovated Homes BAH Revenue = Year 7 — - a
Slide 57: Development Scope and BAH Revenue
nue Le oe : . . Toon imuee Der BOM BAH Reverine ~ Voor 1 cs _ inal Development Scope - ve ee i Phe: : Lg f . / initial Ceewalogpement Porind . : Be Lo eo a » Mew Homes _~ . - ig ese 4 oe ie i TT i — Commameity Facies Le ee
Slide 58: Fort Drum, New York
t Drum, New: ork ae tnitial Development Poviod “0 yeare (2004 ta 2014) New Homes . ; : “4878 Renevated Homes. : 48a0 sin Lucci
Slide 59: Fort Hood Family Housing
t Hood Family Housing ease Lhe y / —
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Slide 62: Fort Hood, Texas — Location
FORT HOOD. TEXAS - LOCATION “APPROXIMATELY 60 MILES NORTH OF AUSTIN, 50 MILES SOUTH OF WACO * 98% OF ALL MILITARY FAMILY MEMBERS LIVE WITHIN 10 MILES OF THE FLAGPOLE *62 YEARS YOUNG *WWil TRAINING CAMP FOR THE ARMY'S TANK DESTROYER TACTICS & FIRING CENTER
Slide 63: Fort Hood Statistical Snapshot
FORT HOOD STATISTICAL SNAPSHOT ‘* 209, 089 ACRES -— 335 SQUARE MILES | MANOE UVER AREA: 138,266 ACRES _ _ - LIVE FIRE IM PACT AREA: 63,000 00 ACRES. > 446 MILES, Ol PAVED ROADS | a MILES OF TAN ae /-1935 MILES OF UTILITY LINES ; . SY »2 AIRFIELDS ; : empty MOBILIZATION SITE ING-MILITARY CONSTRUCTION
Slide 64: Fort Hood: The Only Division Installation
FORT HOOD: THE ONLY 2 DIVISION INSTALLATION IN US ARMY 40 Infantry Division 1% Cavalry Division 13% Corps Spt Cmd 21% Cavalry Bde 89% MP Bde 504th MI Bde 3d Signal Bde 13th Finance Group 2 HQ CMD/GARR " MEDDAC, DENTAG Operational Test Cmd 509 BRADLEYS Military Assiqned 12,888 17,797 6,571 470 1,112
Slide 65: The Fort Hood Community
THE FORT HOOD COMMUNITY: AN ENDURING INSTALLATION vl >169,404 Total Population Served Ton post schools ==" 52. motor pools-- Mi > 44,954 Soldiers/Airmen (+ 2 under construction) 7.2 miles of 615 teachers combat power M1 77,060 Retirees 17,419 students on/off post wl 17,301 On-Post Family Members e L
Slide 66: The Fort Hood Soldier
THE FORT HOOD SOLDIER MALE: 85% FEMALE: 15% 98% HAVE A HIGH SCHOOL DIPLOMA 50% ARE MARRIED; 9.4% TO ANOTHER SOLDIER 58% CAUCASIAN 27% AFRICAN AMERICAN 70% OF SGT AND BELOW HAVE 8% HISPANIC DEPENDENTS 1% NATIVE AMERICAN 2% ASIAN/PACIFIC ISLANDER 4% OTHER
Slide 67: Fort Hood: An Enduring Place
FORT HOOD: AN ENDURING PLACE T A Home of the most powerful corps in the world. A 335 square-mile installation A Largest investment in training devices/ simulations ($440M) in the Army 63,000 acres in the impact area 138,266 acres for maneuver area Largest aviation training area in the Western World
Slide 68: Fort Hood Training Areas
FORT HOOD TRAINING AREAS CSS Logistic Area in Combined Arms Tra
Slide 69: Force Provider for OEF & OIF-1
FORCE PROVIDER FOR OEF & OIF-1 DEPLOYMENT EXCELLENCE AWARD WINNER -— 2003! TF Ironhorse.(4 oe |NE- DIV) 45 of 52 separate — companies from 13 COSCOM Fort Hood!
Slide 70: Army Strategic Mobility Program (ASMP)
ARMY STRATEGIC MOBILITY PROGRAM (ASMP)
Slide 71: Railhead Spurs
RAILHEAD 4 SPURS CAN LOAD 164 RAILCARS IN A 24 HOUR PERIOD 13-14 DAYS TOLOADA DIVISION REQUIRED DEPLOYMENT TIME TO PORT NOT BEING MET 880 ACRES 12 LOADING SPURS 9 SORTING TRACKS LOAD 360 RAILCARS IN A 24 HOUR PERIOD RAIL-LOAD DIVISION TO PORT IN 6-7 DAYS (MEETS REQUIREMENT)
Slide 72: Airfield Operations
AIRFIELD OPERATIONS Robert Gray Army Airfield * Deployment apron too small . « Crash Rescue building old and poorly, Reo exnanded to building. . located inal ity 42 scheduled for completion Aug 03 assenger terminal capacity 429 * New passenger terminals scheduled soldiers ; ; for completion Fall 05
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Slide 75: Fort Hood Partnership Structure
*Seller’ Loan Fort Hoot General Partner FHEH Ine. (Actus Lend Lease} Limited Partners The Amy Actus Lend Lease Actus LL Manager (Actus LL) jenarce Contractor {All Star) Development Ser ices (Actus LL) Design & Corstnuction Contractor (Acts Ll) Construction Guarantor Lend Lease Corp)
Slide 76: Organization
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Slide 77: Inadequate Homes Eliminated
Le eI All Inade quate a Homes Eliminated inS Years 2” : —— 76% Decrease in Amber homes within Hie ie og 5 Wg | EDGE oe Lo yy C
Slide 78: Fusco me caleament ae
Fusco me caleament ae es BA ee ee * cat ¥.. ba & * 3 w >. ¥ * oan CTR CCT ELC eee ' TG : suc a 8 Ht vs ‘ Ci B18 TATE ie Ebi 2G 81-38 BBat AV em 0100 ® oe sees MI ~ ’ w + ee . - : i AU cnn eT he 85 ty Replacement a Malar Fhvnewatings Aapeon GR Me Tenkesieat Unarnte etiam Keamaiivn Appren $208 x Denui
Slide 79: Fort Hood Family Housing
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