Gpt Group · ASX:GPT
Gpt — The GPT Group — FY2006 Earnings Presentation
46 slides from Gpt's earnings presentation, Feb 22, 2007
Slide 1: Annual Results Presentation
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Slide 2: Agenda
Agenda Strategy Financial highlights Strategy highlights Investment Portfolio performance Joint Venture update The GPT Graup
Slide 3: GPT Strategy
GPT Strategy # Investment portfolio v ~ Ongoing active management to drive returns ~ Expansion through acquisitions and developments « Joint Venture Y ~ Focus on building long term value through funds and asset management ~ Additional capital commitment « GPT positioning i ~ Identify additional grow
Slide 4: Highlights
Highlights « EM forecasts delivered — 27.5cps » Joint Venture with Babcock & Brown — Fully invested ($5.9 billion) — Expanded (additional capital, funds management) » Funds management platform established — Successful launch of GPT Wholesale Office Fund (GWOF) — GWOF portfolio expanded — The Zenith
Slide 5: Highlights
Highlights « Australian investment portfolio expanded — Highpoint Shopping Centre — Industrial and office acquisitions « Expanded development pipeline ($3 billion) » Strong income performance delivered* ~ Office up 10.8% ~ Hotel/Tourism up 6.7% ~ Industrial up 5.7% ~ Retail up 4.1% *On a cornparable
Slide 6: Financial Highlights
Slide 7: Key Results
Key Results Forecasts met Distribution up 12.7% Total return 45.2% Strong balance sheet ~ Gearing 35.8% ~ BBB+ credit rating reaffirmed ~ Distribution Reinvestment Plan introduced (Mar 07) The GPT Graup
Slide 8: Reconciliation of Distributable Amount
Reconciliation of Distributable Amount Consolidated $m AS Le 1,384.0 (P&L) oe | | (872.4) (10.8) _ ce i 16.6 we i 13.6 27.6 ay 558.6 (Note 3) ci i 492.3 Ua 13.5% - | _ 2 - _. The GPT Graup
Slide 9: Strong Distribution Growth (cps)
Strong Distribution Growth (cps) 30 27.5 25 24.4 20 15 2001 2002 2003 2004 2005 2006 The GPT Graup
Slide 10: Total Return Above Index (December 2006)
Total Return Above Index (December 2006) 50 (~ ae GPT &P/ASX Property 200 Index 1 Year 3 Years 5 Years 10 Years The GPT Group
Slide 11: Strong Balance Sheet
Strong Balance Sheet » Total assets $12 billion « Gearing 35.8%* « Total borrowings $4.3 billion — $2,587 million AUD ~ €764.3 million (AUD equivalent $1,280 million) ~ US $341.8 million (AUD equivalent $433 million) « Interest cover 3 times * « Current effective interest rate 5.04% ~ Weighted avera
Slide 12: Diversified Asset Base
Diversified Asset Base* Australian Industrial _ ) US Seniors Housing | 5% a Australian Office _| 21% Australian Retail 49% * Office includes GPT investment in GWOF. JV equals contributed equity. The GPT Graup
Slide 13: Strategy Highlights
Slide 14: US Seniors Housing
Slide 15: Acquisition Overview
Acquisition Overview « Established portfolio ~ 95% interest in 19 Seniors Housing properties ~ Well capitalised, quality assets Strong management platform ~ 20% interest in Benchmark Assisted Living (“BAL”) ~ Largest owner-operator of assisted living properties in New England Sector forecast to deli
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Slide 17: Funds Management
Funds Management « Key strategic initiative ~ Diversifies capital sources ~ Leverages GPT skill base ~ Balance sheet management « GPT Wholesale Office Fund ~ Fund grown to $2.36 billion ~ Strong performance delivered for investors ~ GPT co-investment 40% « Strong team in place « Excellent platform f
Slide 18: Joint Venture Expansion
Slide 19: Expansion of Development Pipeline
Slide 20: Increased Development Opportunities: $3 billion
Increased Development Opportunities: $3 billion « Retail - $1.5 billion ~ Expanded with Highpoint acquisition ~ Rouse Hill Town Centre Stage 1 opens end 2007 « Office - 818 Bourke Street and Darling Island underway ~ Future potential at 77 Eagle Street (GPT) and Brisbane Transit Centre (GWOF) # Indu
Slide 21: Australian Retail
Slide 22: Retail
Retail « Total assets $5.8 billion ~ Addition of Highpoint Shopping Centre ~ Completion of developments =» Comparable income up 4.1% « Net revaluations $496.7 million « Solid operating meirics ~ Comparable specialty sales up 2.3% ~ Regional Centres’ specialty sales psm $8,584 ~ Regional Centres’ spe
Slide 23: Development Pipeline: Progress Continues
Development Pipeline: Progress Continues « Melbourne Central ~ Performance demonstrating success of development ~ Income up 7.3% ~ Future growth (On3 completion, rental growth) « Macarthur Square ~ Completed July 2006 ~ $110 million development (GPT share) ~ Forecast year one yield 8% # Rouse Hill T
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Slide 29: Rouse Hill Town Centre
Slide 30: Future Opportunities: $1.5 billion
Future Opportunities: $1.5 billion 2006 2007 2008 2009 2010 =» Masterplanning ~ Highpoint Shopping Centre ~ Sunshine Plaza ~ Forestway Shopping Centre The GPT Graup
Slide 31: Australian Office
Slide 32: Office
Office « $2.6 billion investment ~ GPT assets $1.7 billion ~ Investment in GWOF $900 million « Comparable income up 10.8% « Strong net revaluations ($276 million) « Over 98% space committed* « 108,500 sqm leased* ~ Terms agreed over an additional 11,500 sqm « Manageable lease expiry profile* ~ Avera
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Slide 35: Hotel/Tourism
Hotel/Tourism « $845 million investment « Comparable income up 6.7%* « Solid result in challenging market ~ Cyclone Larry impacts ~ One-off costs ~ Improved performance second half « Ongoing focus on driving revenue/reducing cost « Growth forecast ~ Inbound tourism ~ Voyages consolidation complete *
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Slide 37: Industrial/Business Park
Industrial/Business Park « Portfolio grown to $660 million ~ $160 million new acquisitions ~ Improved diversity and expansion potential « Comparable income up 5.7% # High occupancy — 97% (by income) ~ Long average lease term — 6.6 years # Development focus ~ Coles and Labelmakers at Somerton complet
Slide 38: Joint Venture
Slide 39: Joint Venture: 2006 Highlights
Joint Venture 2006 Highlights Full investment of JV capital by December 2006 Embedded value in the Portfolio Extension and evolution of JV business model ~ Focus on building long term value through funds and asset management ~ Additional capital commitment Acquisition of 50% interest in Halverton Th
Slide 40: Joint Venture: 2006 Earnings
Joint Venture 2006 Earnings Subsequent to year end the JV has entered into a contract to sell 23% of the German residential portfolio at a profit after tax of $A115m. If this transaction completed in 2006 as planned, Top Up would not have been necessary. - The GPT Graup
Slide 41: Joint Venture: 2006 Key Metrics
Joint Venture 2006 Key Metrics US Retail 11% German Residential 36% US Multifamily 8% European Light Industrial (HBI) 24% a) German Office European Retail 5% 16% ve . . | . ui : = a i i i i = = i eal i iL S S = i i i i S = i i - - o - / -—hCrti“‘COséCSésés~S co ] - - - a ae _ _ _ - ] - _ i i - - - -
Slide 42: Joint Venture: German Residential
Joint Venture German Residential « Embedded value in the Portfolio ~ 60% of portfolio re-valued at an 11% uplift to book cost « Sale of assets delivers significant value ~ 23% of portfolio sold at an after tax profit of $115m ~ Quality of retained portfolio improved « Near term focus on optimising p
Slide 43: Joint Venture: Halverton
Joint Venture Halverton # Light Industrial Portfolio has scale, diversity, growth « Proven asset management capability — London based, but “on the ground and local” - Improving KPI's - Strong acquisition pipeline « Solid progress in funds management - German Office Partnership established — Light In
Slide 44: Joint Venture: European Retail
Joint Venture European Retail # Continuing to expand the JV’s asset management capabilities ~ London based team, with local asset managers ~ Current team comprises 13 professionals and growing « Multiple funds management initiatives in the private equity market « Medium term strategy to create a mul
Slide 45: Joint Venture: Other Portfolios
Joint Venture Other Portfolios US Retail Portfolio as a “beachhead” position Continue to evaluate the BNP multi family transaction with B&B German Office Portfolio provides an exposure to a growth sector Continue to evaluate mezzanine debt opportunities The GPT Graup
Slide 46: Joint Venture: Outlook
Joint Venture Outlook « Targeting ROE of 12% to 15%* ~ On track to deliver within this range in 2007 ~ Focus now on 2008 earnings « Multiple funds management initiatives in 2007 ~ Light industrial portfolio ~ Halverton funds ~ European retail initiatives * Based on 100% of joint venture capital, inc