Slide 1: 2008 Annual Results
For personal use only 2008 Annual Results 27 February 2009
Slide 2: Agenda
Agenda For personal use only Performance Strategy Capital Management Operational Overview – Core business – Other investments Outlook 2
Slide 3: Performance
For personal use only 3 Performance
Slide 4: Results Overview
Results Overview For personal use only Realised operating income of $468.8 million in line with October PDS forecast Quality domestic portfolio (80% of real estate investments) performing well $1.6 billion capital raising completed Strengthened balance sheet – Net debt to total assets 33.7%
Slide 5: Operating Results in Line with Forecast
Operating Results in Line with Forecast(1) For personal use only Segment FY08 FY 08 Forecast Actual ($m)(1) ($m) Retail, Office, Industrial and Funds Management Australia(2) $536 $537.4 Hotel/Tourism $57 $62.3 Seniors Housing and Funds Management Europe ($12) ($16.2) Development $28 $31.4 Financing
Slide 6: Australian Investment Portfolio Demonstrating Resilience
Australian Investment Portfolio Demonstrating Resilience For personal use only % of Dec 07 Dec 08 Change in Cap Occupancy(2) WALE(2) Comparable investments(2) Cap Cap rate(2) Rate (bp) income rate(2) growth(1) Retail 47% 5.8% 6.2% 40 99.1% - 4.5% Office 26% 5.9% 6.6% 70 99.0%(3) 5.2 yrs 7.8% Industr
Slide 7: Retail Portfolio Cap Rates and Quality
Retail Portfolio Cap Rates and Quality For personal use only Cap rate expansion since 31-Dec-07 Current cap rates Source: Company reports. Source: Company reports. Relative quality assessment Comments Second highest weighting to regional shopping centres (86%) Cap rate and cap rate expansion ref
Slide 8: Office Portfolio Cap Rates and Quality
Office Portfolio Cap Rates and Quality For personal use only Cap rate expansion since 31-Dec-07 Current cap rates Source: Company reports. Source: Company reports. Relative quality assessment Comments Cap rate expansion consistent with listed peer group GPT has highest weighting towards Premium
Slide 9: Balance Sheet Position
Balance Sheet Position Improved Post Capital Raising For personal use only 30 June 2008 31 December 2008 ($m) ($m) ASSETS Cash 426 962 Real estate related assets 13,087 11,721 Other assets 299 298 Intangible assets 58 49 Total assets 13,870 13,030 LIABILITIES Current borrowings 1,158 547 Non-current
Slide 10: Covenant Position
Covenant Position Significant Headroom For personal use only Adjusted Dec-08 gearing provides ~$2.4 billion (~20%) headroom vs balance sheet gearing covenant Approximately 120bp of cap rate expansion headroom across entire asset base before balance sheet gearing reaches covenant level Estimates
Slide 11: Strategy
For personal use only 11 Strategy
Slide 12: Strategic Focus
Strategic Focus Australian Real Estate For personal use only 12
Slide 13: Capital Management
For personal use only 13 Capital Management
Slide 14: Capital Management Overview
Capital Management Overview For personal use only Capital raising proceeds reduced net debt and improved liquidity Gearing well within covenants – $1.9 billion headroom(1) (40% headline covenant) Liquidity position remains comfortable Well positioned balance sheet Continue to exercise oppo
Slide 15: Balance Sheet Overview
Balance Sheet Overview For personal use only Dec 08 Dec 07 Covenant Total assets $13b $14b Gearing Headline(1) 33.7% 34.6% 40% Look through(1) 46.6% 45.7% 55% Interest cover(2) Headline 2.5x 3.9x 2x Net debt reduced to $4,051 million(3) Corporate credit ratings – S&P: BBB (stable outlook) – Mood
Slide 16: Debt Expiry Profile
Debt Expiry Profile For personal use only 16
Slide 17: Liquidity Position
Liquidity Position For personal use only Approximately $475 million of 12 months to Dec 09 ($m) funding required over next 12 Cash and committed funds at 2,319 31/12/08 months Estimated capital expenditure 260 Available funding of $1.5 billion Maturing facilities (drawn and undrawn) 590 (Dec 09)
Slide 18: Hedging
Hedging For personal use only Policy to provide certainty over cashflows through cycles – Prudent capital and risk management – Long dated positions commensurate with asset profile Current mark to market net liability of $836.3 million reflects unprecedented market conditions – Interest rate mar
Slide 19: Operational Review
For personal use only 19 Operational Review
Slide 20: Core Business
For personal use only 20 Core Business
Slide 21: Australian Retail Portfolio
Australian Retail Portfolio For personal use only Operating performance strong GPT’s Portfolio(3) – Comparable income up 4.5%(1) – Sales growth slower; however supported by stimulus package and lower interest rates – Arrears and vacancies low Key Operating Metrics – Dec 08(2) Comparable total cent
Slide 22: Australian Retail Portfolio Valuations
Australian Retail Portfolio For personal use only Valuations Portfolio value $5.3 billion – GPT $4.6 billion – Investment in GWSCF $735 million Valuations resulted in $181.3 million reduction over the year (3.3%)(1) Portfolio weighted average cap rate 6.2% (5.8% Dec 07)(1) Outlook – Continue
Slide 23: Australian Office Portfolio
Australian Office Portfolio For personal use only Performance strong Geographic Spread(2) – Comparable income up 7.8%(1) Well positioned – Portfolio occupancy 99%(3) – Stepped rental increases average 4% – Weighted average lease term 5.2 years Manageable short term expiry ‘Blue chip’ tenant
Slide 24: Australian Office Portfolio Valuations
Australian Office Portfolio For personal use only Valuations(1) Asset Quality(2) – Portfolio value $2.9 billion; GPT $2.0 billion and investment in GWOF $953 million – Valuations resulted in $172.2 million decrease over the year (5.6%)(1) – Portfolio weighted average cap rate 6.63% (5.9% Dec 07)(1
Slide 25: Australian Industrial/Business Park Portfolio
Australian Industrial/Business Park Portfolio For personal use only Geographic spread Performance strong – Comparable income up 3.8% Solid fundamentals – Portfolio occupancy 100% – Stepped rental increases average 3.4% – Average lease term 7.2 years 38,400 sqm leased 2008 – 2009 expiry limited
Slide 26: Australian Industrial/Business Park Portfolio
Australian Industrial/Business Park Portfolio For personal use only Sale of non core assets – Sydney, Melbourne and Canberra Archives Buildings sold for $38.8 million(1) (4.5% below June 08 book values) Valuations – Portfolio value $819 million – Valuations resulted in $40 million reduction over
Slide 27: Australian Funds Management
Australian Funds Management For personal use only Key component of GPT’s strategy – Diversifies capital sources – Builds capital relationships beyond fund investments – Enhances return profile for GPT through fee streams and development profit realisation AUM now $5.3 billion – GWOF $3.2 billion
Slide 28: Development Overview
Development Overview For personal use only Ability to create new assets and enhance existing assets a critical component of GPT’s strategy and key long term value driver Capability across Retail, Office and Industrial/Business Park sectors Remaining capital requirement – One One One Eagle Stre
Slide 29: Developments: Rouse Hill Town Centre Completed
Developments Rouse Hill Town Centre Completed For personal use only Rouse Hill Town Centre opened successfully March 2008 – Trading well over first 9 months – On track to meet sales and investment return targets workplace6 – Completion of sale to GWOF – 100% committed 29
Slide 30: Developments: One One One Eagle Street
Developments One One One Eagle Street Artist’s impression Underway For personal use only Charlestown Square commenced January 2008 – Construction on programme – Forecast completion late 2010 One One One Eagle Street commenced May 2008 – Sell down of two thirds of project completed – Realistic re
Slide 31: Other Investments
For personal use only 31 Other Investments
Slide 32: Joint Venture Results
Joint Venture Results For personal use only JV contribution to income $108.7 million Asset values reduced by 14.9% (2H08) – 83% of assets valued externally 2H08 – Weighted average cap rate of 7.2% $1.16 billion investment – Ordinary equity written down to nil 80% Loan to Value Ratio – Five l
Slide 33: Joint Venture Strategy
Joint Venture Strategy For personal use only Asset management transition in progress – GPT Halverton to asset manage all European assets – Greg Greenfield & Associates to continue to asset manage US Retail portfolio – Transition to be complete by 30th June 2009 Focus on managing to medium term e
Slide 34: European Funds Management: GPT Halverton
European Funds Management GPT Halverton For personal use only Assets under management €2 billion(1) – Six funds established in the industrial, office and retail sectors – Large institutions and retail investors Management of additional JV assets Ongoing focus on operating efficiencies – Employ
Slide 35: Hotel/Tourism Portfolio
Hotel/Tourism Portfolio For personal use only Portfolio income above PDS forecast – Operating conditions however, remain challenging Valuations – Asset values written down reflecting difficult operating and investment environment Sale process progressing slowly – Continuing discussions with pa
Slide 36: Summary
For personal use only 36 Summary
Slide 37: Summary
Summary For personal use only Result in line with forecast – Domestic portfolio exceeded expectations Core domestic business performing strongly Strength of financial position enhanced via capital raising – $1.9 billion headroom against covenants – Good liquidity – Focus on capital preservatio
Slide 38: Questions
For personal use only 38 Questions
Slide 39: Appendices
For personal use only 39 Appendices
Slide 40: Current Debt Facilities: GPT Bonds
Current Debt Facilities GPT Bonds For personal use only Outstanding $A Tranche Currency equiv M Mat date Yrs to maturity Fixed MTN AUD 74.7 30-Mar-09 0.24 Floating MTN AUD 99.1 30-Mar-09 0.24 Fixed MTN AUD 100.0 07-Nov-10 1.85 Floating MTN AUD 125.0 07-Nov-10 1.85 Fixed MTN AUD 200.0 22-Aug-13 4.64
Slide 41: Current Debt Facilities: Bank Facilities
Current Debt Facilities Bank Facilities For personal use only Outstanding A$ Yrs to Limit A$ Available A$ Tranche Currency equiv M Mat date maturity equiv M equiv M Multi-Option Bilat AUD 0.0 01-Sep-09 0.67 200.0 200.0 Multi-Option Bilat AUD 0.0 30-Sep-09 0.75 175.0 175.0 Multi-Option Syndicated EUR
Slide 42: Current Debt Facilities: Controlled Entities Bank Facilities
Current Debt Facilities Controlled Entities – Bank Facilities For personal use only Outstanding A$ Yrs to Limit A$ Available A$ Entity Currency equiv m Mat date maturity equiv M equiv M Hamburg Bridge Facility USD 42.7 30-Dec-09 1.00 42.7 0.0 Somerton AUD 75.9 31-Mar-11 2.25 77.5 1.6 GPT Halverton –
Slide 43: Balance Sheet: Interest Rate Hedging
Balance Sheet Interest Rate Hedging For personal use only HEDGING PROFILE OVER TIME(1) Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec 08 09 09 10 10 11 11 12 12 13 13 AUD bal M 1,217 1,352 1,462 2,074 2,096 2,117 1,925 1,975 1,925 1,875 1,825 Hedged COF(2) 6.00 6.36 6.51 6.84 7.03 7.10 7.14 7.21 7.73 7
Slide 44: Fair Value: Retail
Fair Value Retail For personal use only Dec 08 Fair Dec 07 Dec 08 Value Cap Rate Cap Rate Property ($m) (%) (%) Casuarina Square, NT 431.6 6.00 6.00 Charlestown Square, NSW 547.0 6.00 6.00 Dandenong Plaza, VIC 236.2 7.25 7.75 Erina Fair, NSW (50%) 422.6 5.50 5.75 Floreat Forum, WA 112.0 6.00 7.50 Me
Slide 45: Fair Value: Retail - Homemaker
Fair Value Retail - Homemaker For personal use only Dec 08 Fair Dec 07 Dec 08 Value Cap Rate Cap Rate Property ($m) (%) (%) Homemaker City, Aspley, QLD 56.0 7.50 8.75 Homemaker City, Bankstown, NSW 30.7 8.00 10.00 Homemaker City, Cannon Hill, QLD 17.5 7.25 9.50 Homemaker City, Fortitude Valley, QLD
Slide 46: Fair Value: Office
Fair Value Office For personal use only Dec 08 Fair Dec 07 Dec 08 Value Cap Rate Cap Rate Property ($m) (%) (%) Australia Square, Sydney, NSW $290.1 5.50/5.75 6.50 MLC Centre, Sydney, NSW $410.1 6.00 6.50 Melbourne Central, VIC $380.0 6.13 6.63 818 Bourke Street, VIC(2) $127.5 - 6.75 Citigroup Centr
Slide 47: Fair Value: Industrial
Fair Value Industrial For personal use only Dec 08 Fair Dec 07 Dec 08 Value Cap Rate Cap Rate Property ($m) (%) (%) 2-4 Harvey Road, Kings Park, NSW 46.0 7.25 7.75 Citi-West Industrial Estate, Altona North, VIC 68.9 7.50 8.00 Quad 1, Sydney Olympic Park, NSW 20.5 7.25 7.50 Quad 2, Sydney Olympic Par
Slide 48: Fair Value: Industrial
Fair Value Industrial For personal use only Dec 08 Dec 07 Dec 08 Fair Value Cap Rate Cap Rate Property ($m) (%) (%) Austrak Business Park, Somerton, VIC 141.4 7.25 7.34 Austrak land, Somerton, VIC(1) 15.6 - - 407 Pembroke Road, Minto, NSW 15.8 - 7.75 134-140 Fairbairn Road, Sunshine West, VIC 13.6 7
Slide 49: Industrial and Business Parks Portfolio Cap Rates and Quality
Industrial and Business Parks Portfolio Cap Rates and Quality For personal use only Cap rate expansion since 31-Dec-07 Current cap rates Source: Company reports. Source: Company reports. Comments 7.9% weighted average cap rate in line with sector average ~50bp increase in line with average 60bp
Slide 50: Retail Sales Summary
Retail Sales Summary For personal use only 50
Slide 51: Hotel/Tourism Performance Summary
Hotel/Tourism Performance Summary For personal use only Voyages Ayers Rock and Alice Springs Resort Dec 2008 Change %(1) Occupancy 60% -4.0% Average Daily Rate $225 1.8% Total Revenue (‘000) $116,037 -3.8% Voyages Lodges Occupancy 62% -2.0% Average Daily Rate $256 -3.4% Total Revenue (‘000) $84,412
Slide 52: Top Tenants: Retail Portfolio
Top 10 Tenants(1) Retail Portfolio For personal use only Coles Group Woolworths Limited Myer Just Group Hoyts Colorado Group Brazin Group Sussan Corporation Luxottica Group Prouds (1) As percentage of gross portfolio income (GPT plus interest in GWSCF). Top ten tenants represent
Slide 53: Top Tenants: Office Portfolio
Top 10 Tenants(1) Office Portfolio For personal use only Federal Government Citibank Limited National Australia Bank BP Australia Freehills Telstra Ericsson State Government ANZ Banking Group PricewaterhouseCoopers (1) As percentage of gross portfolio income (GPT plus interest in
Slide 54: Top Tenants: Industrial/Business Park Portfolio
Top 10 Tenants(1) Industrial/Business Park Portfolio For personal use only Coles Myer Australian Pharmaceutical Industries Steinhoff Asia Pacific Vodafone Australia SuperCheap Auto Mitsubishi Motors EFFEM Foods Linfox Acer Computer Dairy Farmers (1) Top ten tenants represent 47.2
Slide 55: Fund Summary
Fund Summary For personal use only Fund Fund AUM GPT Fund Profile 31 Dec 08 Est. co-investment (terms exclude extension options) Gearing Australian Wholesale Funds GWOF Q3 2006 AUD $3.2 billion AUD $953m Core Australian office assets. No defined 18% term. GWSCF Q1 2007 AUD $2.1 billion AUD $735m Cor
Slide 56: Joint Venture Fund Overview
Joint Venture Fund Overview For personal use only 56
Slide 57: Joint Venture Fund Income
Joint Venture Fund Income For personal use only 57
Slide 58: Joint Venture Fund Debt
Joint Venture Fund Debt For personal use only 58