GPT Group · ASX:GPT
GPT — The GPT Group — FY2005 Earnings Presentation
36 slides from GPT's earnings presentation, February 2006
Slide 1: 2005 Annual Results
2005 Annual Results The GPT Group
Slide 2: Overview
Overview • Internalisation update • Core portfolio performance • Joint Venture update • Capital Management overview • Group outlook 2 Annual Results 2005
Slide 3: Reconciliation of Distributable Amount
Reconciliation of Distributable Amount Actuals ($m) Profit after tax (A-IFRS) 566.8 Plus Finance Costs 205.5 Internalisation costs 62.3 Other (Net) 9.4 Less Fair Value and Revenue Adjustments 341.7 Net gain on disposal of properties 10.0 Equals Realised Operating Income 492.3 3 Annual Results 2005
Slide 4: Results in line with EM
Results in line with EM EM Actuals ($m) Forecast ($m)* Property Income 643.3 641.3 JV Income 20.2 20.2 Trust Expenses (6.0) (7.2) Management & Admin (28.0) (27.6) Net Interest – domestic (137.5) (134.4) Total distribution 492.0 492.3 *Adjusted to remove the impact of the sale of an interest in Sunsh
Slide 5: Strong Operating Performance
Strong Operating Performance 2002 2003 2004 2005** Distribution (cps) 20.4 21.2 22.0 24.4 Growth 3.5% 3.9% 3.8% 10.9% Earnings (cps) 20.4 21.6 21.3 24.4 Underlying growth* 3.6% 3.1% 3.1% 14.5% NTA per security $2.60 $2.73 $3.02 $3.16 1 Yr Return 12.8% 8.2% 33.6% 16.7% •Excludes the impact of the cha
Slide 6: GPT: Asset Breakdown
GPT: Asset Breakdown • JV investment represents 8% total investment assets Hotels Communities 9% 1% Industrial 4% Retail 44% Office 34% JV 8% 6 Annual Results 2005
Slide 7: Retail
Retail Penrith development: complete November 2005 7 Annual Results 2005
Slide 8: Key Results: Retail
Key Results: Retail • Comparable income up 4.3% (5.9% overall) • Strong sales and operating results* — Total centre comparable MAT growth up 3.6% — Specialty comparable MAT growth up 3.3% — Regional specialty sales/sqm at $9,083 — Regional specialty occupancy costs at 14.7% • Occupancy high and arre
Slide 9: Retail Developments: Existing Projects
Retail Developments: Existing Projects • Melbourne Central ($260m: 100%) — Complete Sept 2005 — Trading well — 8% yield on cost • Penrith ($70m: 50%) Melbourne Central — Complete Nov 2005 — Fully leased — 9% yield on cost • Macarthur Square ($109m: 50%) — Stage 1 complete Nov 2005 — Stage 2 due Marc
Slide 10: Retail Developments: Future Projects
Retail Developments: Future Projects Rouse Hill Town Centre, NSW 10 Annual Results 2005
Slide 11: Rouse Hill Town Centre
Rouse Hill Town Centre • Strong growth potential — Trade area larger than regional average — Strong population growth — Household income significantly above average • Major retail, leisure and community destination — 70,000 sqm — Majors secured • $470 million development • Future expansion potential
Slide 12: Office
Office National @ Docklands, VIC Citigroup, 2 Park Street, Sydney 12 Annual Results 2005
Slide 13: Key Results: Office
Key Results: Office • Comparable income flat (up 1.7% overall) • Occupancy increased to 94.9%* • 108,000 sqm leased to December 05 — Terms agreed over an additional 36,400 sqm • Manageable lease expiry profile — Average lease term 6.2 years* • Darling Park Stage 3 — Completed ahead of schedule (end
Slide 14: Hotel/Tourism
Hotel/Tourism Ayers Rock Resort, NT 14 Annual Results 2005
Slide 15: Key Results: Hotel/Tourism
Key Results: Hotel/Tourism • Comparable income up 8.9% (24.5% overall) • Ayers Rock Resort — Revenue +8.4% — Room Nights Sold +3.0% — Room Rate +4.2% — GPT Income +8.2% • Four Points by Sheraton Sydney — Revenue +4.3% — Room Nights Sold (5.5%) — Room Rate +12.2% — GPT Income +8.1% 15 Annual Results
Slide 16: Key Results: Hotel/Tourism
Key Results: Hotel/Tourism • Lodges Portfolio — Revenue (4.9%) — Room Nights Sold (5.8%) — Room Rate (0.4%) — Income + 118%* • Brisbane Holiday Inn — Revenue +9.5% — Room Nights Sold +3.0% — Room Rate +11.9% — Income +69.5% *Includes impact of acquisitions during 2004 and 2005 16 Annual Results 2005
Slide 17: Industrial/Business Park
Industrial/Business Park Quad 3: Olympic Park, NSW Effem Facility: Somerton, VIC 17 Annual Results 2005
Slide 18: Key Results: Industrial/Business Park
Key Results: Industrial/Business Park • Comparable income up 7.5% (15.2% overall) • High occupancy – 98.4% (incl. land leases) • Long average lease term – 6.1 years • Austrak, Somerton — Coles Myer National Distribution Centre (74,700 sqm) — Labelmakers (22,200 sqm) — P&O Terminal lease • Further ac
Slide 19: Urban Communities
Urban Communities Twin Waters, QLD 19 Annual Results 2005
Slide 20: Joint Venture: Update
Joint Venture: Update • GPT income from JV $28.2 million — 1.0 cps distribution, net of funding costs — Includes Babcock & Brown contribution of $5.8m • Acquisition program well advanced — $3.5 billion acquired (at mid Feb 2006)* — Pipeline remains strong — Spreads at or near target • Well placed to
Slide 21: Joint Venture: Portfolio Diversity
Joint Venture: Portfolio Diversity JV FUND PORTFOLIO:* JV FUND PORTFOLIO:* Asset Sector by Value (AUD) Geographic Distribution by Value (AUD) Light Industrial Poland Czech Republic 15% 2% United States 5% 16% Office Residential 8% 39% France 1% Netherlands Germany 6% 70% Retail 38% *At mid Feb 2006
Slide 22: Portfolio Update: German Residential
Portfolio Update: German Residential • Portfolio value $1.36 billion — Completed Dec 2005 $884m — Since completed or under contract Feb 2006 $474m • Performance on track* — 88% occupancy — €4.92 rent p/sqm — Average 2006 forecast yield - 6.3% (net of all costs) • Outlook — Strong capital inflows, ca
Slide 23: Portfolio Update: German Residential
Portfolio Update: German Residential • LOCATION GLA APTS* VALUE Hamburg North & West Germany (AMB) 113,232 1,564 98,881 North Germany 110,439 1,784 106,855 Salzgitter Berlin 115,869 1,260 264,504 Berlin Muenster Munich 24,779 558 53,805 West Germany 40,137 556 75,369 GERMANY Kiel 74,643 1,455 72,125
Slide 24: Portfolio Update: European Retail
Portfolio Update: European Retail • Portfolio value $865 million — Completed Dec 2005 $635m — Since completed or under contract Feb 2006 $230m • Overall performance on track* — 97% occupancy — Galerie Butovice not yet stabilised — Average 2006 forecast yield – 6.5% (net of all costs) • Outlook — Str
Slide 25: Portfolio Update: European Retail
Portfolio Update: European Retail Hamburg Berlin GERMANY POLAND CZECH 30 ASSETS REPUBLIC 300,000 SQM 25 Annual Results 2005
Slide 26: Portfolio Update: US Retail
Portfolio Update: US Retail • Portfolio value $471 million — $26m capital expenditure commitment over 2 years • Performance on track — 93% occupancy — US $282 sales p/sqft — 10% occupancy cost — Forecast 2006 yield – 7.6% (net of all costs) • Outlook — Selectively grow portfolio — Leverage relations
Slide 27: Portfolio Update: European Light Industrial
Portfolio Update: European Light Industrial • Portfolio value $538 million — Completed Dec 2005 $380m — Since completed or under contract Feb 2006 $160m — Portfolio target (minimum) $1.25b • Performance on track* — 92% occupancy — €3.99 p/sqm rent — 2006 forecast yield – 6.5% (net of all costs) • Ou
Slide 28: Portfolio Update: European Light Industrial
Portfolio Update: European Light Industrial NETHERLANDS Amsterdam Rotterdam BERLIN GERMANY Dusseldorf PARIS Frankfurt #Assets Tenants GLA (sqm) GLA % Munich France 5 37 46,000 9% FRANCE Netherlands 11 211 205,000 38% Germany 10 92 289,000 53% Total 26 340 542,000 100% * Portfolio at mid Feb 2006 28
Slide 29: Joint Venture: German Office
Joint Venture: German Office • Portfolio value $300 million — Completed Dec 2005 $126m (seed asset) — Under contract Feb 2006 $174m • Market Overview — Office market fundamentals improving — Favourable capital markets environment (selective) • Investment Strategy — Location secondary cities, inner c
Slide 30: Joint Venture: German Office
Joint Venture: German Office • Wurtemburgische Portfolio — Purchase price $174m — 33 properties located in secondary cities — 20 properties represent 85% of the portfolio — Remaining properties to be divested — 2006 forecast yield (passing) 6.6% (net of all costs) — Vacancy 11% — Under-rented 3 – 5%
Slide 31: Joint Venture: Summary
Joint Venture: Summary • $3.5 billion assets acquired • Outlook — Confident of fully investing by Dec 2006 — Strong and visible pipeline of opportunities — Earnings from JV on target — Continuing to pursue a range of Fund Management opportunities 31 Annual Results 2005
Slide 32: Capital Management
Capital Management • Total assets $10.4 billion • Gearing of 35% • Total borrowings $3.6 billion — $2,846 million AUD — €485 million (AUD equivalent $782 million) • Current effective interest rate 5.45% — Weighted average length of debt 3 years 32 Annual Results 2005
Slide 33: Capital Management: Interest Rates
Capital Management: Interest Rates Actual Exposures Actual Hedges 5,000.00 4,500.00 4,000.00 3,500.00 3,000.00 (A 2,500.00 UD Mill2,000.00 ion s) 1,500.00 1,000.00 500.00 0.00 (500.00) Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 33 Annual Results
Slide 34: Capital Management: Foreign Exchange
Capital Management: Foreign Exchange Average exchange Sell Euros AUD Equivalent rate 31-Dec-05 31-Dec-05 31-Dec-05 Maturity EUR(€ M) AUD/EUR AUD($M) Less than 1 year 24.2 0.5789 39.0 1- 2 years 31.1 0.5662 50.2 2 - 3 years 36.4 0.5668 58.6 3 - 4 years 41.0 0.5668 66.1 4 - 5 years 41.1 0.5645 66.3 Ov
Slide 35: In Summary
In Summary • Strong 2005 results — Delivered on forecast of 24.4 cps distribution — Transition successfully implemented — Strong performance from core portfolio — JV investment well progressed • Outlook — Funds management strategy — Complete JV investment — On track to deliver on 2006 forecasts 35 A
Slide 36: Questions
Questions www.gpt.com.au