Brookfield Asset Management Inc · NYSE:BAM
Brookfield Asset Management — Brookfield Office Properties Australia (Multiplex SITES Trust) — H1 2010 Earnings Presentation
51 slides from Brookfield Asset Management's earnings presentation, August 2010
Slide 1: Brookfield Office Properties Australia (BOPA) June 2010 Financial Results and Corporate Profile
BROOKFIELD OFFICE PROPERTIES Multiplex SITES Trust AUSTRALIA (BOPA) June 2010 Financial Results and Corporate Profile INITIAL PUBLIC OFFERING August 2010
Slide 2: Important Notice
Important Notice Whilst this presentation has been prepared in good faith, no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained in the presentation (any of which may change witho
Slide 3: Agenda
Agenda 1. Financial Results 2. Brookfield Properties Australian Office Transaction 3. Q&A Appendices • Overview of Multiplex SITES • Corporate Profile 2
Slide 4: Financial Results
FINANCIAL RESULTS
Slide 5: SITES Distributions
SITES Distributions In accordance with the terms for Multiplex SITES, from 1 April 2010 the distribution rate is the three month bank bill rate plus a margin of 390 bps. Below is a summary of the quarterly distributions and the rates paid during the past 12 months. Annualised Quarterly Period En
Slide 6: Highlights for the six month period to 30 June 2010
Highlights for the six month period to 30 June 2010 Financial Funds from operations(1) for the period of $80 million, Net profit after tax attributable to stapled security holders of $2 million for the period. Capital / Funding Completed property-level and corporate debt financings totalling $
Slide 7: Highlights for the six month period to 30 June 2010
Highlights for the six month period to 30 June 2010 Operational Achieved Practical Completion and sold the Deloitte Centre, Auckland for NZ$177 million. Replenished Construction workbook, increasing workbook to $3.3 billion in Australia. Awarded the following projects: − Auckland Data Centre,
Slide 8: Overview of Earnings – Funds from Operations
Overview of Earnings – Funds from Operations 6 Months 6 Months Change (A$m) to June 2010 to June 2009 Commercial property operations 66.6 63.9 2.7 Residential development operations (6.1) (3.1) (3.0) Constructions 34.3 33.0 1.3 Services 2.9 3.8 (0.9) Corporate (General and Admin) (17.9) (17.8) (0.1)
Slide 9: Overview of Earnings – Net Income
Overview of Earnings – Net Income 6 months to June 6 months to June Change (A$m) 2010 2009 Funds from Operations 79.7 79.8 (0.1) Depreciation/Amortisation (13.5) (9.0) (4.5) Fair Value Adjustments 23.3 (223.7) 247.0 Provisions (8.9) (54.3) 45.4 Minority Interest (18.2) (12.2) (6.0) "one-off" (costs)
Slide 10: Balance Sheet - Assets
Balance Sheet - Assets 30 June 2010 31 December Change (A$m) (A$m) 2009 (A$m) Cash and equivalents 264.1 265.8 (1.8) Trade and other receivables 936.3 899.8 36.5 Inventories 575.6 665.8 (90.2) Other assets 139.6 170.5 (30.9) Investment in promissory note 1,300.0 1,300.0 0.0 Equity accounted investme
Slide 11: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity 30 June 2010 31 December Change (A$m) (A$m) 2009 (A$m) Liabilities Trade and other payables 648.0 525.9 122.1 Interest bearing loans and borrowings 2,968.7 3,373.2 (404.5) Non-interest bearing loans and borrowings 606.2 337.4 268.8 Other liabilities 151.5 137.0
Slide 12: Balance Sheet – External Debt Maturity Profile
Balance Sheet – External Debt Maturity Profile Rate (%) 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec (1) Term (1) Total 2010 2011 2012 2013 2014 2015 Floating Fixed Commercial Properties 7.8 2.41 2,725.5 151.5 725.8 1,105.0 743.2 - - 1,058.1 1,667.5 Residential Properties 8.0 0.74 239.1 104.7 130.1 - 4
Slide 13: Brookfield Properties Australia Office Transaction
BROOKFIELD PROPERTIES AUSTRALIA OFFICE TRANSACTION 12
Slide 14: Brookfield Properties – Australia Office Transaction
Brookfield Properties – Australia Office Transaction On 30 July 2010, Brookfield Asset Management (BAM) (the Group’s ultimate parent company) agreed to enter into a transaction with Brookfield Office Properties Inc (BPO). BPO will loan BAM A$1.6 billion and receive a return calculated by referen
Slide 15: Brookfield Properties – Australia Office Transaction
Brookfield Properties – Australia Office Transaction No impact on SITES holders. No entity within the Group has entered into any arrangements in respect of the loan and option, as such, there is no change to the legal ownership of the properties unless and until the exercise by BPO of any of its
Slide 16: Outlook
Outlook 15 Brookfield
Slide 17: Overview of Multiplex SITES
OVERVIEW OF MULTIPLEX SITES
Slide 18: Multiplex SITES – Capital Structure
Multiplex SITES – Capital Structure Multiplex SITES are Step-up Income-distributing Trust-issued Exchangeable Securities, which are fully paid units issued by Multiplex SITES Trust. Brookfield Multiplex Funds Management Limited is the responsible entity of Multiplex SITES Trust. SITES are list
Slide 19: Multiplex SITES – Capital Structure
Multiplex SITES – Capital Structure Brookfield Multiplex Limited and Brookfield Multiplex Property Trust guarantee the face value of the SITES on redemption and any unpaid distributions in the year preceding redemption on an unsecured and subordinated basis. The guarantees rank ahead of holders
Slide 20: Corporate Profile
CORPORATE PROFILE
Slide 21: Overview of Australian Operations
Overview of Australian Operations Commercial Properties – Invested in 37 properties, comprising 1,049,896 sqm in Australia’s top markets – High rents, high occupancy levels and long-term leases to Government and institutional grade tenants – Steady cashflow from stable operating income – 2 develop
Slide 22: Top Markets, Premier Portfolio
Top Markets, Premier Portfolio Our portfolio includes well-located, prominent assets in Australia’s top markets. Value NOI Market Cap Market Sqm (000’) (1) (A$m) (A$m) (2) Rate % Sydney - Office 450.2 2,024.5 148.0 7.2 Brisbane - Office 76.9 394.0 29.2 7.8 Melbourne - Office 212.2 890.8 59.8 7.3 Per
Slide 23: Commercial Property Investments
Commercial Property Investments $5.0 billion of commercial property investments across 37 completed assets (including $762 million of equity accounted property investments) and 6 development projects. Investment by Market ($) Investment by Sector ($) Sydney Brisbane Perth Melbourne Office Retail Ind
Slide 24: Long Term Lease Profile
Long Term Lease Profile 7.1 years weighted average lease term and minimal near-term lease expiries - limits market risk. Average Lease term by market 8.0 7.9 7.7 7.0 7.1 4.8 4.6 3.3 Sydney Brisbane Melbourne Perth Canberra Retail Industrial Average 23
Slide 25: Leasing Exposure: Low Rollover Profile
Leasing Exposure: Low Rollover Profile Limited vacancy and rollover exposures - ensures continuity of income stream combined with low levels of capital expenditure and leasing costs. 600,000 500,000 400,000 NLA m2 300,000 200,000 100,000 - Currently 2010 2011 2012 2013 2014 2015 2016 2017 + Availabl
Slide 26: Diversified, High Credit Quality Tenants
Diversified, High Credit Quality Tenants Tenant Name Area sqm ('000's) Building Sector WALE Rating State Government of Victoria 70 Southern Cross East Government 11.2 AAA Commonwealth Bank of Australia 66 Darling Park Tower 1 and CBA Building Banking / Investment 10.0 AA Australian Tax Office 54 ATO
Slide 27: Industry Leading Occupancy Rates
Industry Leading Occupancy Rates Our office portfolio occupancy rate is 97.8%. Office Vacancy Rates 9.2% 9.3% 9.1% 9.0% 8.7% 8.1% 8.0% 4.3% 2.2% 1.1% 0.4% 0.0% Sydney Brisbane Melbourne Perth Canberra Total Source: JLL National Office Summary, (Grade A) Brookfield Q2 2010 Market 26
Slide 28: Commercial Developments
Commercial Developments Premium quality assets under construction with a solid pipeline for the future. Ownership Under Construction Interest (%) Buildable (sqm) Pre-leased (%) Claremont Quarter (1) 50 29,399 95 City Square 100 86,400 72 115,799 Ownership Interest Estimated Pipeline for Future Devel
Slide 29: Funds Management
Funds Management Brookfield
Slide 30: Funds Management
Funds Management The funds management business has circa $2.0 billion of funds under management as at 30 June 2010. Brookfield Multiplex Asset investment (%) as at Unaudited(1) FUM as at location 30 June 2010 30 June 2010 ($) Listed Funds Multiplex Prime Property Fund Australia 68.0 608 Multiplex
Slide 31: Residential Development
Residential Development Brookfield
Slide 32: Residential Development
Residential Development Brookfield Multiplex’s pipeline of almost 15,000 residential lots and apartment units will provide the basis for continued growth in our key markets. Market presence across Australia positions us well to take advantage of distressed opportunities in the current market. De
Slide 33: Residential Development
Residential Development Apartments No of Units Completed Stock 141 Work in Progress 321 Held for Future Development 2,948 3,410 Communities Completed Lots 72 Work in Progress 2,422 Held for Future Development 8,898 11,392 (1) Number of units/lots represent total, not Brookfield Multiplex’s proportio
Slide 34: Construction
Construction Brookfield
Slide 35: Construction
Construction As at 30 June 2010, the construction portfolio has total contract value of approximately $3.3 billion across the residential, commercial, heath, retail and engineering sectors within Australia and New Zealand. Opening Closing Balance New Projects Work Foreign Balance December 2009 Sec
Slide 36: Construction
Construction As at 30 June 2010, the construction workbook is as follows: Asset Approximate Contract Completion Project Name Location Value (A$m) Date City Square WA 731 Q3 2012 NSW Schools – Western Sydney NSW 360 Q4 2010 Hilton Surfers Paradise Hotel and Residences QLD 369 Q4 2011 Claremont Shop
Slide 37: Services
Services Brookfield
Slide 38: Services
Services The Services team provide integrated real estate, facilities management and project management services to commercial property owners and occupiers, infrastructure owners and residential investors. Commercial Property – Manage more than 2 million square meters and 2,000 leases/licences fo
Slide 39: Portfolio Details
Portfolio Details Brookfield
Slide 40: Sydney
Sydney Macquarie Group Sydney Water NAB House IAG House Building Headquarters • 32,986 sqm • 23,330 sqm • 39,965 sqm • 38,743 sqm • 100% occupied • 100% occupied • 99% occupied • 100% occupied • 100% owned • 100% owned • 25% owned • 50% owned • Value of ownership • Value of ownership • Value of owne
Slide 41: Sydney
Sydney KPMG Tower 15 Blue Street ATO World Square Darling Park • 27,953 sqm • 15,872 sqm • 23,035 sqm • 111,725 sqm • 100% occupied • 97 % occupied • 100% occupied • 98% occupied • 50% owned • 100% owned • 50% owned • 30% owned • Value of ownership • Value of ownership • Value of ownership • Value o
Slide 42: Sydney
Sydney Ernst & Young American Express House Jessie Street Pittwater Place Centre (including Centre 50 Goulburn St) • 67,998 sqm • 14,974 sqm • 12,166 sqm • 53,898 sqm • 100% occupied • 100% occupied • 98% occupied • 97% occupied • 50% owned • 100% owned (MAFCB) • 100% owned • 100% owned (MAFCB) • Va
Slide 43: Sydney
Sydney King Street Wharf World Square Dee Why Luna Park Retail Retail Town Centre Car Park • 5,653 sqm • 16,187 sqm • 12,532qm • 389 parking spaces • 100% occupied • 99% occupied • 85% occupied • 100% owned • 100% owned • 50% owned • 100% owned • Value of ownership interest $6.6m • Value of ownershi
Slide 44: Sydney and Canberra
Sydney and Canberra Rosehill Alinga Street • 88, 487sqm • 16,329 sqm • 100% occupied • 100% occupied • 100% owned • 100% owned • Value of ownership • Value of ownership interest $87.4m interest $66.6m 43
Slide 45: Brisbane
Brisbane AMP Place CBA Building ANZ Centre Carole Park • 28,190 sqm • 28,277 sqm • 20,465 sqm • 39,074 sqm • 87% occupied • 100% occupied • 85% occupied • 100% occupied • 100% owned • 100% owned • 50% owned • 100% owned • Value of ownership • Value of ownership • Value of ownership • Value of owners
Slide 46: Brisbane
Brisbane Great Western Meeandah Super Centre • 19,468 sqm • 15,078 sqm • 100% occupied • 97.0% occupied • 100% owned • 100% owned • Value of ownership • Value of ownership interest $4.1m interest $50.1m • Value of adjacent land $11.3m 45
Slide 47: Perth
Perth Bishop See BankWest Ernst & Young Carillon City South Tower Tower Arcade and Tower • 17,836 sqm • 39,546 sqm • 11,476 sqm • 16,486 sqm total site • 100% occupied • 87% occupied • 99% occupied • 97% occupied • 50% owned • 50% owned • 100% owned • 50% owned • Value of ownership • Value of owners
Slide 48: Melbourne
Melbourne Bourke Place Southern Cross Southern Cross Defence Plaza West Tower East Tower • 65,546 sqm • 80,267 sqm • 19,089 sqm • 47,266 sqm • 99% occupied • 100% occupied • 100% occupied • 99% occupied • 43% owned • 100% owned • 100% owned • 50% owned • Value of ownership (MAFCB) • Value of ownersh
Slide 49: Commercial Development
Commercial Development Brookfield
Slide 50: Claremont Quarter
Claremont Quarter Ideally located between the city, river and ocean, Claremont Quarter is the heart of what has become known as the ‘Golden Triangle’, surrounded by Perth’s most affluent suburbs. The site area is approximately 29,000sqm and is being developed in two stages. Stage 1 (14,000 sqm retai
Slide 51: City Square
City Square The property is situated at one of the most prestigious locations in Perth’s CBD, with extensive frontage on St Georges Terrace and access to Mounts Bay Road and two major east-west thoroughfares. The premium-grade 45 level tower will be the new premises for BHP Billiton for a term of 15