Slide 1: Annual Results 27 February 2008
For personal use only Annual Results 27 February 2008
Slide 2: Overview
Overview For personal use only Very strong 2007 result Rapid change in market conditions – Credit crisis – Real estate cycles turning UK/US – Repricing of risk Consequences for operation of Joint Venture Business well placed – Prudent gearing/minimal refinancing risk – Stable Australian base
Slide 3: Key Achievements 2007
Key Achievements 2007 For personal use only Solid financial results – Underlying earnings per security growth 7.0% – Distribution growth of 5.1% (28.9 cps) Delivery of strategy – Continued focus on driving performance from core portfolios – Launch of Wholesale Shopping Centre Fund – Establishmen
Slide 4: Delivery of Strategy
Delivery of Strategy For personal use only 4
Slide 5: Ownership
For personal use only 5 Ownership
Slide 6: Management
For personal use only 6 Management
Slide 7: Development
For personal use only 7 Development
Slide 8: Financial Highlights
For personal use only Financial Highlights
Slide 9: Key Results
For personal use only 9 Key Results
Slide 10: Strong Distribution Growth (cps)
Strong Distribution Growth (cps) For personal use only 10
Slide 11: Key Results
Key Results For personal use only 2007 2006 Realised operating income $605.1m $558.6 ↑ 8.3% Total distributions* $597.0m $559.8m ↑ 6.6% Distribution per security 28.9 cps 27.5 cps ↑ 5.1% Earnings per security 29.4 cps 27.5 cps ↑ 7.0% Revaluations $764.5m $853.0m ↓ 10.4% NTA $3.86 $3.60 ↑ 7.2% *Equal
Slide 12: Reconciliation: Realised Operating Income
Reconciliation Realised Operating Income For personal use only 31 December 2007 $m Net Profit (after tax) 1,182.5 Adjustments: Property revaluations (764.5) JV adjustments – realised 61.3 Profit on sale (workplace6) 21.4 Mark to market of derivatives 51.9 Non cash revenue adjustments 21.3 Depreciati
Slide 13: Diversified Investments and Income
Diversified Investments and Income For personal use only Total Income Total Investment* *US Seniors Housing and Joint Venture equals contributed equity. Office and Retail include GPT’s equity interest in the GPT Wholesale Office and Shopping Centre Funds. 13
Slide 14: Earnings Breakdown
Earnings Breakdown For personal use only Realised operating income ($m) Retail 292.9 Office 189.9 Industrial 47.7 Hotel/Tourism 72.5 Seniors Housing 19.9 Funds Management 8.6 Corporate (177.4) Joint Venture 151.0 TOTAL 605.1 Earnings per security (cents)* 29.4 Joint Venture 3.7 Base business 25.7 *A
Slide 15: Capital Management
For personal use only Capital Management
Slide 16: Capital Management Initiatives
Capital Management Initiatives For personal use only €2.01 billion facility completed – Broad range of providers – 0.024% increase in margin – Currency flexibility – AUD, EUR, USD, GBP or other Distribution Reinvestment Plan – $165.5 million raised – Underwriting in place (at GPT’s option) Sal
Slide 17: Balance Sheet Overview
Balance Sheet Overview For personal use only Dec 07 Dec 06 Total assets $14b $12b ↑ 16.4% Gearing Headline 36.3% 35.8% ↑ 0.5% Look through 46.8% 46.7% ↑ 0.1% Interest cover* Headline 3.9% 3.6% ↑ 0.3% Look through 2.8% 3.0% ↓ 0.2% Total borrowings $4,995.0 million Percentage of secured debt 7.0%
Slide 18: Debt Profile by Currency
Balance Sheet Debt Profile by Currency For personal use only Weighted average Interest bearing cost of debt1 liabilities Australia ($A) 6.04% A$2,129.3m Europe (€)2 4.24% €1,239.5m US ($US)3 5.01% US$670.1m Weighted Average* 5.14% 1 Inclusive of margins and fees 2 AUD/EUR conversion rate 0.6000 3 AU
Slide 19: Maturity Profile
Balance Sheet Maturity Profile For personal use only Average term to expiry of 3.7 years 2008 maturities covered by existing capacity 19
Slide 20: Expiry Profile
Balance Sheet Expiry Profile For personal use only $ billion 2008 Maturities (note 17) $1.2 GPT Halverton/Hamburg Trust 7 Year Facilities ($0.3) Required financing $0.9 Euro syndicated capacity $0.9 Further undrawn facilities under negotiation and $1.45 expected to roll forward 20
Slide 21: In Summary
In Summary For personal use only Balance sheet well positioned – $2,823.6 million current undrawn facilities – 2008 maturities totalling $0.9b (absorbed by current capacity under Euro syndicated of $0.9b) – Limited short-term funding required Gearing within policy ranges and in line with covenan
Slide 22: Operational Review
For personal use only Operational Review
Slide 23: Ownership Portfolio
For personal use only Ownership Portfolio
Slide 24: Australian Retail Portfolio
Australian Retail Portfolio For personal use only Outlook remains positive – Potential rate rises balanced by tax cuts Performance strong – Comparable income up 4.8%* Portfolio positioned for strong ongoing growth Key Operating Metrics – Dec 07** Comparable total centre sales growth 4.5% Compa
Slide 25: Australian Office Portfolio: Outlook
Australian Office Portfolio For personal use only Outlook very positive Total Vacancy GPT’s Portfolio Prime Rental Growth* Source: JLL Research Q4/07. *Gross effective. **Includes GPT owned and GWOF owned assets. 25
Slide 26: Australian Office Portfolio
Australian Office Portfolio For personal use only Performance strong – Comparable income up 6.3%* Positioned for growth** – Portfolio 98.7% committed – Reviews/renewals in 2008 by area 30%** – WALE by area 6.0 years *GPT owned assets only. **Includes GPT owned and GWOF owned assets. 26
Slide 27: Australian Industrial/Business Park Portfolio
Australian Industrial/Business Park Portfolio For personal use only Outlook very positive Performance strong – Comparable income up 3.7% Strategic focus successful – Acquire/control strategic development sites – Sydney Olympic Park, Sydney – Austrak Business Park, Somerton, Melbourne Austrak B
Slide 28: Australian Hotel/Tourism Portfolio
Australian Hotel/Tourism Portfolio For personal use only Performance solid despite conditions – Comparable income down -1.0%* – Four Points up ↑ – Lodges up ↑ – Ayers Rock Resort down ↓ Portfolio positioned for long term performance – Ayers Rock Resort - unique asset in dominant position *Reflec
Slide 29: US Seniors Housing Portfolio
US Seniors Housing Portfolio For personal use only Performance strong – Portfolio performing in line with expectations – 6.8% forecast yield achieved* – Occupancy stable US economic environment uncertain Portfolio resilient – High quality portfolio in strong markets – Excellent manager in Benc
Slide 30: Development
For personal use only Development
Slide 31: Development
Development For personal use only Owned and managed pipeline $4.9 billion Development important value driver for the Group GPT Wholesale Funds • Ongoing development profits • Exclusive access to quality product • Capital recycling • Strong returns • Annuity fee streams • Quality management • Par
Slide 32: Development Teams
Development Teams For personal use only High quality, experienced teams established 32
Slide 33: Development Pipeline: Retail
Development Pipeline Retail: GPT owned For personal use only Est. Forecast Forecast Status cost Yield Timing Rouse Hill Town Centre, NSW $470m 7% 2006-2008 Complete Mar 08 Charlestown Square, NSW $450m 7-7.5% 2008-2010 Commenced Jan 08 Erina $20m 7-7.5% 2008-2009 DA lodged Sunshine Plaza, Qld* $125m
Slide 34: Rouse Hill Town Centre
Rouse Hill Town Centre For personal use only 34
Slide 35: Rouse Hill Stage Opening
Rouse Hill Stage 1 Opening For personal use only 35
Slide 36: Rouse Hill Stage Opening
Rouse Hill Stage 1 Opening For personal use only 36
Slide 37: Charlestown Square Aerial
Charlestown Square Aerial For personal use only 37
Slide 38: Charlestown Square Redevelopment proposal
Charlestown Square Redevelopment proposal – context plan For personal use only 38
Slide 39: Development Pipeline: Office
Development Pipeline Office: GPT owned For personal use only Forecast Forecast Status Est. cost Yield Timing workplace6, Sydney* $140m 7.6% 2007-2008 Sold to GWOF Under construction 818 Bourke Street, Melbourne $110m 7.8% 2006-2007 Complete Nov 07 Eagle Street, Brisbane $630m 7-7.5% 2008-2011 DA app
Slide 40: Artist's impression of workplace6
Artist’s impression of workplace6 For personal use only 40
Slide 41: workplace6
workplace6 For personal use only Contemporary office asset – Waterfront site – 18,000 sqm office building – Certified 6 Star Green Star Design Rating (first in NSW) – Office space fully leased (Google and Accenture) Project commenced April 2007 Forecast completion by November 2008 Sold to GW
Slide 42: Artist's impression of Eagle Street
Artist’s impression of 111 Eagle Street For personal use only 42
Slide 43: Development Pipeline: Industrial
Development Pipeline Industrial: GPT owned For personal use only Est. Est. Forecast Status cost Yield Timing Sydney Olympic Park, Samsung $170m 7.5% 2009-2013 Pending new SOP masterplan Sydney Olympic Park, other sites $210m 7.5% 2013-2016 Pending new SOP masterplan Austrak Business Park, Somerton,
Slide 44: GPT sites – Sydney Olympic Park
For personal use only GPT 44 sites – SOP – Green = Investment; Orange = Development
Slide 45: Development Pipeline: Funds
Development Pipeline Funds For personal use only Est. cost Forecast Status Timing Retail Wollongong Central, NSW $300m 2008-2010 DA Submitted 2007 Chirnside Park, Vic $120m 2009-2010 Masterplanning Highpoint Shopping Centre, Vic (100%) $400m 2009-2011 Masterplanning Office 545 Queen Street, Brisbane
Slide 46: Joint Venture
For personal use only Joint Venture
Slide 47: Joint Venture Overview
Joint Venture Overview For personal use only Continued delivery of return – EM forecasts met 2005-2006 – Targets met 2007 – Access to operating platform in Europe In discussions to accelerate redemption of capital and lower GPT risk profile – Responds to changing real estate and debt markets – R
Slide 48: Joint Venture 2007 Performance
Joint Venture 2007 Performance For personal use only GPT ROE target achieved Top Up repaid in full 65% of GPT Income from rental income 55% of GPT Income is preferred income Income (1) 12 months to Target Dec 07 JV Net Profit ($m) 239.7 239.7 JV ROE 12.8% 13.0% GPT Income ($m) (2)(3) Preferr
Slide 49: Joint Venture Investment by Region
Joint Venture Investment by Region For personal use only Virtually no exposure to the UK Germany displaying resilience – GDP growth continues, though moderating – Stable occupier markets – Continued real estate fund inflows – Balance sheet lenders cautious but active US market uncertainty – Re
Slide 50: Joint Venture Valuation Summary
Joint Venture Valuation Summary For personal use only All assets marked to market at year end 45% of assets re-valued externally in 2H07 Several divestment initiatives are well advanced at values supporting book values Portfolio Book Cost Book Value Uplift over (AUD m) (AUD m) Book Cost German
Slide 51: Joint Venture Debt Summary
Joint Venture Debt Summary For personal use only $4.97 billion in debt at year end Gearing 69.6% 96% fixed or hedged for weighted average >5 years Weighted average term to expiry >6 years Debt Maturity (at February 2008) 51
Slide 52: Joint Venture Outlook
Joint Venture Outlook For personal use only 2008 initiatives well progressed – Euro light industrial securitisation – German retail divestment – German residential divestment – Focus on operational improvement ROE Targets – Rebased GPT JV income to exclude trading profits (rental income only) -
Slide 53: Funds Management
For personal use only Funds Management
Slide 54: Funds Management
Funds Management For personal use only Business successfully grown – $0 June 2006 – now over $8.5 billion Significant platform in place – Resources in Australia and Europe – Good access to product Established relationships with key investors – Focus on wholesale market – Domestic and internati
Slide 55: Rapid Growth in Assets Under Management
Rapid Growth in Assets Under Management For personal use only 55
Slide 56: Funds Management Results
Funds Management Results For personal use only Realised operating income $8.6 million – GWOF and GWSCF performance fee Raised over $2.5 billion in equity for new funds** – GWSCF – GRP – DAF – Domicilium Australia $5.1 billion assets under management (↑44%) – Established GWSCF – Acquisitions ($
Slide 57: GPT Wholesale Office Fund
Australian Wholesale Funds GPT Wholesale Office Fund For personal use only Open ended fund established July 2006 – Base fee 0.45% of asset value per annum – Performance fee up to 0.45% of asset value (capped) per annum Fund grown to $3 billion – Four acquisitions secured* – Three developments un
Slide 58: GPT Wholesale Shopping Centre Fund
Australian Wholesale Funds GPT Wholesale Shopping Centre Fund For personal use only Open-ended fund established March 2007 ($1.9 billion) – Base fee 0.45% of asset value per annum – Performance fee up to 0.45% of asset value (capped) per annum Fund grown to $2.1 billion – First acquisition (Nort
Slide 59: Europe: GPT Halverton
Europe GPT Halverton For personal use only Acquired July 2007 Substantial pan-European business – 160 people across 10 offices – €2 billion ($3.36 billion) assets under management – 6 funds established Generally ‘core plus’ funds with defined terms Fees – Acquisition – Asset management – Per
Slide 60: Funds Management Outlook
Funds Management Outlook For personal use only Focus on delivering performance from existing funds Ongoing investor demand – Continuing to diversify capital partners Good access to product – Potential opportunities in UK New funds – Marketing Northern European Light Industrial Fund (JV’s HBO
Slide 61: In Summary
In Summary For personal use only Strong growth delivered – Earnings per security up 7.0% – Distributions per security up 5.1% Business model established and delivering growth – Expansion and active management of investment portfolio – Continued growth in funds management – Development profits re
Slide 62: Appendices
For personal use only Appendices
Slide 63: Current Debt Facilities: GPT Bonds
Current Debt Facilities GPT Bonds For personal use only Fixed Floating Outstanding Yrs to /indexed Swapped margin over Tranche ccy $A equiv M Mat date maturity rate to float benchmark* floating MTN AUD 140.0 26-Jun-08 0.49 0.470 fixed MTN AUD 160.0 27-Jun-08 0.49 0.49 0.490 floating MTN AUD 100.0 22
Slide 64: Current Debt Facilities: Bank Facilities
Current Debt Facilities Bank Facilities For personal use only Floating Outstanding Yrs to Limit $A available A$ margin over Tranche ccy A$ equiv M Mat date maturity equiv M equiv M benchmark Multi option facility AUD 50.0 30-Jun-08 0.50 750.0 700.0 0.625 Short term notes AUD 45.8 30-Jun-08 0.50 500.
Slide 65: Controlled Entities – Bank Facilities
Current Debt Facilities Controlled Entities – Bank Facilities For personal use only Floating Outstanding Yrs to Limited A$ Available margin over Entity ccy A$ equiv M Mat date maturity equiv M A$ equiv M benchmark Halverton O/D Facility EUR 7.8 31-Mar-08 0.25 9.2 1.4 2.64 Somerton T1 AUD 16.6 31-Mar
Slide 66: Interest Rate Hedging
Balance Sheet Interest Rate Hedging For personal use only HEDGING PROFILE OVER TIME * Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec 07 08 08 09 09 10 10 11 11 12 12 AUD bal M 2,175 2,025 1,925 1,500 1,450 1,450 975 1,025 775 775 725 Rate 5.42 5.44 5.55 5.64 5.77 5.85 6.12 6.18 6.57 6.74 7.01 % hedged
Slide 67: Fair Value: Retail
Fair Value Retail For personal use only Dec 06 Fair Value Dec 07 Fair Value Cap Rate Property ($m) ($m) (%) Casuarina Square, NT $384.6 $415.0 6.00% Charlestown Square, NSW $444.2 $459.7 6.00% Dandenong Plaza, VIC $215.6 $225.0 7.25% Erina Fair, NSW $429.2 $409.8 5.50% Floreat Forum, WA $120.0 $135.
Slide 68: Fair Value: Retail - Homemaker
Fair Value Retail - Homemaker For personal use only Dec 06 Fair Value Dec 07 Fair Value Cap Rate Property ($m) ($m) (%) Homemaker City, Aspley, QLD $65.9 $70.0 7.50% Homemaker City, Bankstown, NSW $51.7 $50.0 8.00% Homemaker City, Cannon Hill, QLD $20.9 $22.0 7.25% Homemaker City, Fortitude Valley,
Slide 69: Fair Value: Office
Fair Value Office For personal use only Dec 06 Fair Value Dec 07 Fair Value Cap Rate Property ($m) ($m) ( %) Australia Square, Sydney, NSW $237.6 $300.0 5.50%/5.75% MLC Centre, Sydney, NSW $339.5 $397.5 6.00% One One One Eagle Street, Brisbane, QLD* $27.4 $36.4 6.75% Melbourne Central, VIC $331.2 $3
Slide 70: Fair Value: Industrial
Fair Value Industrial For personal use only Dec 06 Fair Value Dec 07 Fair Value Cap Rate Property ($m) ($m) (%) 2-4 Harvey Road, Kings Park, NSW $32.2 $47.0 7.25% Citi-West Industrial Estate, Altona North, VIC $69.8 $76.3 7.50% Quad 1, Sydney Olympic Park, HSW $16.8 $19.3 7.25% Quad 2, Sydney Olympi
Slide 71: Fair Value: Industrial
Fair Value Industrial For personal use only Dec 06 Fair Value Dec 07 Fair Value Cap Rate Property ($m) ($m) (%) Austrak Business Park, Somerton, VIC $124.1 $144.7 7.25% 134-140 Fairbairn Road, Sunshine West, VIC $13.5 $14.0 7.25% 116 Holt Street, Pinkenba, QLD $14.3 $15.0 7.50% Block 1 & 4 Section 1
Slide 72: Fair Value: Hotel/Tourism
Fair Value Hotel/Tourism For personal use only Dec 06 Fair Value Dec 07 Fair Value * Property ($m) ($m) Cap Rate % Ayers Rock Resort, NT $426.7 $445.4 7.8% Four Points, NSW $206.8 $232.4 8.5% Lodges $214.7 $217.5 5.7%-9.1% Total $848.2 $895.3 Weighted average cap rate 7.9% * Includes interests in as
Slide 73: Retail: Sales Summary
Retail: Sales Summary For personal use only 73
Slide 74: Office Portfolio
Office Portfolio For personal use only Weighted average lease term 6 years (by area) 74
Slide 75: Industrial/Business Park Portfolio
Industrial/Business Park Portfolio For personal use only Weighted average lease term 7.6 years (by income) 75
Slide 76: Hotels Performance
Hotels Performance For personal use only Voyages Ayers Rock and Alice Springs Resort Dec 2007 Change % Occupancy 63.7% 0.4% Average Daily Rate $221 -6.7% Total Revenue (‘000) $120,678 -3.6% Voyages Lodges* Occupancy 64.0% 1.4% Average Daily Rate $265 2.3% Total Revenue (‘000) $90,980 0.6% Total Voya
Slide 77: Fund Summary
Fund Summary For personal use only Fund Fund AUM GPT Fund Profile Gearing Established co-investment (terms exclude extension options) range GWOF Q3 2006 AUD $3 billion AUD $1,060.5m Core Australian office assets. No defined term. 30-50% GWSCF Q1 2007 AUD $2.1 billion AUD $817.4m Core Australian reta
Slide 78: Questions
For personal use only Questions