Gpt Group · ASX:GPT
Gpt — The GPT Group — H1 2006 Earnings Presentation
41 slides from Gpt's earnings presentation, Aug 29, 2006
Slide 1: Mid Year Results Presentation, August 2006
— — | — — n = S D D oO Ls © D > Oo = August 2006
Slide 2: Agenda
Agenda « Highlights ~ Group highlights ~ Financial highlights « Operating Performance « Strategic Initiatives ~ Joint Venture update ~ Funds management platform » Strategy The GPT Group
Slide 3: Group Highlights
Slide 4: Highlights
Highlights » Delivery of financial forecast ~ Results in line with EM forecast ~ Distribution growth 19.3% Strong balance sheet Solid results from existing operations Progress on strategic initiatives ~ JV fully invested ~ Launch of first wholesale fund Outlook remains positive The GPT Group
Slide 5: Financial Highlights
Slide 6: Reconciliation of Distributable Amount
Reconciliation of Distributable Amount Consolidated $m Profit after tax 696.5 Less Fair value adjustments 454.6 Net gain on disposal of properties 2.0 Plus Revenue adjustments 20.5 Internalisation costs 7.1 Other (Net) 7.6 Realised operating income 275.1 Realised operating income Jun 05 230.3 Increa
Slide 7: Strong distribution growth
Strong distribution growth 15 13 11 eae a fa fo June 02 10.6 June 03 June 04 Dec 04 Ju 13.9 (Forecast) neO5 Dec05 Juned6 Dec 06 The GPT Group
Slide 8: Total Return Above Index (June 2006)
Total Return Above Index (June 2006) % 30 f~ Gl cet 9 sapiasx Property 200 Index 26.7 41 Year 3 Years 5 Years The GPT Group
Slide 9: Diversified Asset Base
Diversified Asset Base* JV Equity 12% Industrial 6% Hotel/Tourism 8% *At June 2006, adjusted for the creation of the GPT Wholesale Office Fund in July 2006. Office includes GPT investment in GWOF. JV equals contributed equity. The GPT Group
Slide 10: Strong Balance Sheet
Strong Balance Sheet* « Total assets $11 billion Gearing of 32.8% Total borrowings $3.6 billion ~ $2,590 million AUD ~ €600 million (AUD equivalent $1,032 million) Interest cover 3.3** times Current effective interest rate 5.01% ~ Weighted average length of debt 2.9 years *At June 2006, adjusted for
Slide 11: Significant increase in Net Asset Backing
Significant increase in Net Asset Backing* « Net asset backing per security $3.47 « Strong increase on Dec 2005 $3.16 « Increase in net revaluations $462.2 million “Excludes provision for June quarter distribution payrnent (approximately 6.9 cents per security). The GPT Group
Slide 12: Interest Rate Hedge Profiles Limits Risk
Interest Rate Hedge Profiles Limits Risk At 30 June, adjusted for creation of GPT Wholesale Office Fund July 2006 swe Actual Exposures _ sr . _ _ oe Lo. Loo
Slide 13: Retail
Slide 14: Retail
Retail « Total assets $5.4 billion ~ Interests in 16 shopping centres ~ 9 Homemaker City centres «» Comparable income growth 3.5% « Net revaluations $264.9 million The GPT Group
Slide 15: Retail
Retail « Solid sales performance in moderating market* ~ Total centre comparable MAT growth 1.8% ~ Specialty comparable MAT growth 1.4% « Regional specialty sales $9,117 sqm* ~ Regional specialty occupancy costs 15% «» Occupancy high and arrears low ~ Vacancy less than 1% GLA ~ Arrears less than 0.1
Slide 16: Development Pipeline: Progress Continues
Development Pipeline: Progress Continues « Macarthur Square ~ Completed July 2006 ~ $109 million development ~ Forecast year yield 8% « Rouse Hill Town Centre underway ~ $470 million greenfield development ~ Target yield 7% ~ Excellent trade area demographics The GPT Group
Slide 17: Wee
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Slide 18: Rouse Hill Town Centre
Slide 19: Development Pipeline Remains Strong
Development Pipeline Remains Strong Rouse Hill (06-08) _$470m 2006 2007 2008 2009 *Estimated timing and cost only The GPT Group
Slide 20: ANNE
ANNE The GPT Group
Slide 21: GPT Office Investment
GPT Office Investment 237.0 237.0 24.4 24.4 294.2 294.2 330.9 330.9 332.5 332.5 5.4 5.4 313.3 313.3 50.7 170.0 141.1 63.0 293.4 478.7 257.2 94.6 342.2 249.6 - 862.3 3,678.2 2,400.0 The GPT Group
Slide 22: Office
Office « $2.4 billion investment ~ GPT assets $1.5 billion ~ Investment in GWOF $860 million « Comparable income up 14.5% « Strong net revaluations ($167.8 million) » Over 96% space committed” » 59,000 sqm leased to June 2006" ~ Terms agreed over an additional 21,700 sqm «» Manageable lease expiry p
Slide 23: Slide 23
Slide 24: Development
Development # 818 Bourke Street, Melbourne ~ Located in Docklands, Melbourne ~ Adjacent to National@Docklands ~ Cost approx $100 million (forecast yield 7.5%) # Quality campus style asset ~ A-grade quality building ~ 21,700 sqm office space over six levels # 10,650 sqm committed to Ericsson ~ 10 yea
Slide 25: oo . Dae We,
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Slide 26: Hotel/Tourism
Hotel/Tourism « $842 million investment ~ Four Points by Sheraton, Sydney ~ Voyages Resorts a Income up 2% (like with like) » Performance weaker following strong 2005 result ~ Weak leisure demand ~ Increased marketing costs ~ Cyclone Larry impacts ~ One off costs a Ongoing focus on driving revenue/r
Slide 27: The GPT Group
The GPT Group
Slide 28: Industrial/Business Park
Industrial/Business Park Portfolio grown to $607 million portfolio Comparable income up 8% High occupancy — 97% ~ Long average lease term — 5.8 years Net revaluations $12.2 million The GPT Group
Slide 29: Significant Growth Secured
Significant Growth Secured « Acquisitions ($150 million) ~ Portfolio of six assets acquired February 2006 ~ Wetherill Park, NSW ~ Port Adelaide, SA ~ Macquarie Park, NSW = Quad 4 underway ~ Due for completion end 06 s Austrak, Somerton ~ Labelmakers facility (22,200 sqm) complete ~ Coles Myer Nation
Slide 30: eT Tan
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Slide 31: Joint Venture
Joint Venture Highlights a On track to achieve full investment by Dec 2006 ~ $5.0 billion completed at June 30 ~ $0.8 billion currently under contract « On track to deliver JV EM forecasts for 2006 « Well positioned to deliver strong earnings growth in 2007 ~— First year of full investment ~ Additio
Slide 32: Joint Venture
Joint Venture June 2006 Snapshot Multifamily German Residential 8% bl 4296 US Retail 8% Light Industrial ___ 20% j German Office 5% (Mezzanine <1%) The GPT Group
Slide 33: Joint Venture
Joint Venture German Residential ] oo - . . | _ ] / / . . a *Settled and under contract The GPT Group
Slide 34: Joint Venture
Joint Venture European Retai a ii geil _ a Tinie Cash'n'Carry 8% i Shopping Centre 39% *Settled and under contract The GPT Group
Slide 35: Joint Venture
Joint Venture European Light Industrial* Netherlands Assets 41 GLA% 28) France Assets GLA% *Settled and under contract The GPT Group
Slide 36: Joint Venture
Joint Venture US Multifamily « $500m interest in a $1.2b multifamily portfolio ~ Stable cashflows, tenant diversity ~ Improving fundamentals ~ Significantly below replacement cost # Investment structure ~ One third equity interest $412m 6.3% yield ~ 10 Year mezzanine debt $84m 10.25% yield The GPT G
Slide 37: Joint Venture
Joint Venture US Multifamily Management by Alliance » Top Ten multi-family manager » Incentivised fee structure The GPT Group
Slide 38: Joint Venture
Joint Venture US Retail a The GPT Group
Slide 39: Joint Venture
Joint Venture Results «» Achievements — past 12 months ~ JV fully invested by Dec 2006 ~ Well diversified, but focused portfolio — Investment strategy delivered * Stable cash-flows « Attractive spreads * 75% gearing, non-recourse debt « Interest rates substantially hedged ~ Well positioned to delive
Slide 40: Funds Management
Funds Management « Key strategic initiative ~ Diversifies capital sources ~ Leverages GPT skill base ~ Balance sheet management « First fund launched July 2006 ~ $2.1 billion GPT Wholesale Office Fund ~ Strong demand ~ Excellent register (domestic and international investors) ~ GPT co-investment 40%
Slide 41: GPT Strategy
GPT Strategy « Core portfolio v ~ Ongoing active management to drive returns ~ Expansion through acquisitions and developments « Joint Venture v ~ Continued focus on converting pipeline assets, stable cashflows/locked in funding spreads ~ Maximising value ~ trading, securitisation, refinancing « GPT