Slide 1: GPT Annual Result
For personal use only GPT ANNUAL RESULT 23 February 2015
Slide 2: 2014 Annual Result Highlights
2014 ANNUAL RESULT HIGHLIGHTS Delivering on strategy with a disciplined, consistent and transparent approach For personal use only Delivering consistent results from core business − 4.1% EPS1 growth − 9.6% Total Return Disciplined capital allocation and capital management − $2 billion of transac
Slide 3: Our Outlook
OUR OUTLOOK Strong performance in a subdued environment For personal use only Fundamentals remain mixed Business confidence and consumer sentiment remain subdued though helped by the recent ECONOMY interest rate cut and fuel costs Improvement in the contribution of the non-mining sectors over
Slide 4: 2014 Annual Result Summary
2014 ANNUAL RESULT SUMMARY Financial summary For personal use only 12 months to 31 December ($m) 2014 2013 Change (%) Net Profit After Tax 645.3 571.5 12.9 Less: Valuation increases (249.5) (92.2) Add: Treasury items marked to market 89.1 (20.3) Less: Distribution on exchangeable securities (25.0)
Slide 5: Increasing profitability from Development and Funds Management
2014 ANNUAL RESULT HIGHLIGHTS Increasing profitability from Development and Funds Management 12 months to 31 December ($m) 2014 2013 Change ($m) For personal use only Retail NOI 248.7 264.3 15.6 Asset divestments Office NOI 141.8 144.1 2.3 Higher average vacancy Acquisitions and development Logi
Slide 6: Active Management
ACTIVE MANAGEMENT All business areas delivering results For personal use only Focus on management divisions delivering results FFO contribution from the management company up 31% on prior year Development capability creating significant value 31 December 2014 Funds Logistics RMP Asset Total ($
Slide 7: Capital Management
CAPITAL MANAGEMENT Strong capital position For personal use only 31 Dec 2014 31 Dec 2013 Change Net tangible assets per security $3.94 $3.79 4.0% Total borrowings $2,718m $2,310m 17.7% Gearing (net debt to total tangible assets) 26.3% 22.3% 400 bps Look through gearing 28.2% 23.2% 500 bps (n
Slide 8: Capital Management: Active management creating platform for growth
CAPITAL MANAGEMENT Active management creating platform for growth For personal use only Extending maturity and diversifying capital sources − US$175 million US Private Placement for 15 years issued in the first half at a margin of 144 basis points over BBSW − $150 million 6 year medium term notes
Slide 9: Investment Portfolio Overview
INVESTMENT PORTFOLIO OVERVIEW Quality result and positioned for growth For personal use only Portfolio has undergone significant rebalancing − $2 billion in transactions in 2014 (>$4 billion since 2012) Portfolio remixing delivering results − Specialty retail sales growth up 4.2% − GWOF best per
Slide 10: Total Portfolio Return
TOTAL PORTFOLIO RETURN Return in excess of target For personal use only Investment portfolio return of 9.3% drives Group Total Return performance of 9.6% Weighted average cap rate firmed 23 basis points to 6.27% with logistics leading performance Total Portfolio Return 10
Slide 11: Retail Portfolio
RETAIL PORTFOLIO 2014 Highlights – Portfolio is in great shape with key indicators improving For personal use only Retail markets 2.9% like for like income growth Retail sales growth above the long term average Growth driven by food and retail services Online sales growth moderating 99.5% occu
Slide 12: Retail Development
RETAIL DEVELOPMENT $1.3 billion pipeline with mixed use opportunities being pursued to enhance returns For personal use only Retail development pipeline Forecast Development Property Cost Opportunity GPT Assets Casuarina Square1 $28m Leisure and entertainment Melbourne Central $125m Rooftop mixed us
Slide 13: Office Portfolio Performance
OFFICE PORTFOLIO PERFORMANCE 2014 Highlights – Portfolio substantially de-risked and vacancy further reduced For personal use only Office markets (1.1%) like for like income growth Leasing markets remain variable with recovery in demand in Sydney and Melbourne Strong demand for high quality asse
Slide 14: Office Markets
OFFICE MARKETS Vacancy exposure well positioned in the current markets For personal use only PERTH BRISBANE High vacancy 15.8% Market Falling net effective rents -30.7% High vacancy 16.8% Falling net effective rents -9.9% GPT Portfolio ADELAIDE High occupancy 93.2% High vacancy 15.0% L
Slide 15: Logistics Portfolio Performance
LOGISTICS PORTFOLIO PERFORMANCE 2014 Highlights – Acquisitions and developments driving returns For personal use only (0.5%) Industrial markets like for like income growth Strong investment demand driving cap rate compression Patchy leasing demand with most activity from transport and storage
Slide 16: Logistics Portfolio
LOGISTICS PORTFOLIO Strategically recycling capital to enhance portfolio For personal use only $80m Development Profits/Revaluations Land Acquisitions $47m in development profits $44m replenishing land banks (Wacol, Brisbane) $33m in investment portfolio revaluations $101m in total land bank $181m i
Slide 17: 2015 Portfolio Priorities
2015 PORTFOLIO PRIORITIES Value creation through development and leasing For personal use only Casuarina Square – commence construction of new leisure and entertainment precinct Rouse Hill Town Centre – convert expansion opportunity RETAIL Charlestown Square – secure international retailers
Slide 18: Funds Management
FUNDS MANAGEMENT Strong performance and quality drives capital inflows For personal use only FUM Historical Growth 16% per annum growth since 2010 Successfully raised $1.4 billion of new capital across the Office $9.6b and Shopping Centre funds, inclusive of DRP $6.6b $7.1b $5.3b $5.6b Listing o
Slide 19: Property Prosperity
= PROPERTY 10 PROSPERITY ¢ Delivering consistent returns from the core portfolio e Funds Management outperformance ¢ Development capability creating material value ¢ Disciplined capital allocation and management delivers consistent long term performance targeting >9% Total Return EPS growth guidance
Slide 20: Appendices
For personal use only GPT ANNUAL RESULT Appendices
Slide 21: Retail
For personal use only RETAIL 21
Slide 22: Retail: Key performance indicators have improved
RETAIL Key performance indicators have improved For personal use only Strong specialty sales productivity 12 months to 31 December 2014 2013 Specialty MAT sales psm1 $9,754 $9,285 High occupancy at 99.5% representing 36 vacancies Specialty Occupancy Cost1 17.9% 18.3% Specialty occupancy cost h
Slide 23: Retail: Specialty sales up 4.2% in 2014
RETAIL Specialty sales up 4.2% in 2014 For personal use only Monthly Specialty Sales Growth1 Moving Annual Change in Retail Sales by Category1,2 26.2% 7.3% 5.8% 12.1% 5.0% 5.0% 5.1% 4.8% 4.5% 7.5% 6.8% 5.9% 5.4% 4.7% 3.9% 4.2% 3.7% 2.5% 2.0% 1.8% 1.5% 3.1% 3.2% 0.3% (0.2%) (0.1%) (2.7%) Retail Servi
Slide 24: Retail: Investing in the right centres and catchments
RETAIL Investing in the right centres and catchments is driving stronger sales growth For personal use only Asset contribution to specialty MAT sales growth of 4.2%1 40% Contribution to portfolio specialty growth 30% Rouse Hill Charlestown 28% 25% 20% Melbourne Penrith Central 19% 18% 10% Macarthur
Slide 25: Retail: Retail trade indicators strong
RETAIL Retail trade indicators strong For personal use only Retail Trade Growth (by state) Growth in share market and housing market has NSW VIC QLD supported consumer spending 14% SA WA Total Annual Growth (m/m) 12% 10% Retail trade growth above the long term average in 8% 2014, with key states
Slide 26: Office
For personal use only OFFICE 26
Slide 27: Office: Tenant demand improving throughout 2014
OFFICE Tenant demand improving throughout 2014 E.W.G, Government For personal use only Resources, 2% Material improvement in inspections, proposals and deals Construction executed over 2014. Approximately 60% of inspections were in 5% Finance & 2H 2014 Other 12% Insurance 29% Demand led by small
Slide 28: Office: Sydney leading activity
OFFICE Sydney leading activity Leasing Enquiry versus Net Absorption For personal use only Demand versus Supply Sydney and Melbourne CBD Sydney and Melbourne CBD Office 120,000 150,000 6% Leasing Enquiry 5% Net Absorption Net Supply 80,000 100,000 sqm. per month (LHS) % of Total Stock sqm. per annum
Slide 29: Office: Resource based states lagging
OFFICE Resource based states lagging Leasing Enquiry versus Net Absorption For personal use only Demand versus Supply Brisbane CBD Brisbane and Perth CBD Office 30,000 90,000 12% 9.6% 20,000 10% Net Absorption Net Supply sqm. per annum sqm. per month Leasing Enquiry (LHS) 40,000 8% % of Total Stock
Slide 30: Office: Leasing activity resulting in limited near term vacancies
OFFICE Leasing activity resulting in limited near term vacancies For personal use only Area % of Owner Tenant (sqm) Portfolio Expiry Progress Brisbane Brisbane Transit Brisbane City GWOF 4,200 0.1% Jun 15 Vacating Centre Council 545 Queen Street GWOF Flight Centre 8,100 0.5% Jan 17 Vacating Sydney 9
Slide 31: Office: Progressing MLC Centre repositioning
OFFICE Progressing MLC Centre repositioning For personal use only Redevelopment Progressing − Foodcourt works due to complete mid 2015 − End Of Trip facilities under construction − Tower floor works complete − DA lodged for stage 2 redevelopment − Facade works progressing well Successful Leasing
Slide 32: Office: Allocating capital in a disciplined way
OFFICE Allocating capital in a disciplined way For personal use only Office platform acquired five assets ($1.2 billion) in 2014 and completed one development at 150 Collins Street CBW acquisition an example of utilising platform to acquire large scale assets and enhancing returns Recycling ca
Slide 33: Logistics
For personal use only LOGISTICS 33
Slide 34: Logistics Portfolio: Benefitting from recent growth strategy
LOGISTICS PORTFOLIO Benefitting from recent growth strategy For personal use only Total Portfolio Return 12.7% $80m value creation Investment Development Recent acquisitions driving outperformance Delivering on activation of existing land banks Completed $181m of new product Cap rate compression fro
Slide 35: Logistics: Strong focus on key areas of business
LOGISTICS Strong focus on key areas of business For personal use only ENHANCEMENTS DEVELOPMENTS ACTIVE Maximising value at right point Adding value to existing Adding scale to the portfolio in the cycle assets within the portfolio with experienced development team Acquiring in the right market at th
Slide 36: Logistics: Opportunities in portfolio to create value
LOGISTICS Opportunities in portfolio to create value For personal use only ENHANCEMENTS DEVELOPMENTS ACTIVE Adding value to existing assets within the portfolio A number of opportunities to enhance value in the portfolio Urban renewal opportunities with >$2 billion in gross realisation − Sydne
Slide 37: Logistics: Flexible approach to development
LOGISTICS Flexible approach to development For personal use only ENHANCEMENTS DEVELOPMENTS ACTIVE Develop for Balance Sheet Develop for GPT Funds Develop and Sell Rand, Erskine Park 3 Murray Rose Chullora Joint Venture RRM, Erskine Park TNT, Erskine Park 2014 completion of Toll NQX Karawatha, TNT
Slide 38: Logistics: Disciplined management strategy
LOGISTICS Disciplined management strategy For personal use only ENHANCEMENTS DEVELOPMENTS ACTIVE $351 million in acquisitions since 2012 – well timed in the cycle and now benefitting from yield compression Recycling capital into land bank Opportunity for more non-core asset sales Logistics Por
Slide 39: Funds Management
For personal use only FUNDS MANAGEMENT 39
Slide 40: Funds Management: 35% growth with strong performance
FUNDS MANAGEMENT 35% growth with strong performance For personal use only $2.5 billion growth in funds under management Growth in Funds under Management − $2.1 billion in existing wholesale funds $9.6b GWOF acquired four Melbourne CBD assets $7.1b $0.4b $6.6b $3.8b GWSCF acquired interests in
Slide 41: Disclaimer
DISCLAIMER For personal use only The information provided in this presentation has been prepared by The GPT Group comprising GPT RE Limited (ACN 107 426 504) AFSL (286511), as responsible entity of the General Property Trust, and GPT Management Holdings Limited (ACN 113 510 188). The information pro