Gpt Group · ASX:GPT

Gpt — The GPT Group — H1 2010 Earnings Presentation

134 slides from Gpt's earnings presentation, Aug 24, 2010

  1. Slide 1: Interim Result 24 August 2010

    For personal use only Interim Result 24 August 2010

  2. Slide 2: Notes

    Notes AjuoO esn feuosied JOS The GPT Group

  3. Slide 3: Agenda

    For personal use only Agenda MICHAEL CAMERON, CEO and Managing Director ƒ Performance ƒ Strategy ƒ Operations MICHAEL O’BRIEN, CFO ƒ Financial Overview ƒ Capital Management MICHAEL CAMERON, CEO and Managing Director ƒ Outlook ƒ Questions 3

  4. Slide 4: Notes

    Notes AjuoO esn feuosied JOS The GPT Group

  5. Slide 5: Performance

    For personal use only Performance

  6. Slide 6: Notes

    Notes AjuoO esn feuosied JOS The GPT Group

  7. Slide 7: Reinvigorating GPT

    7 For personal use only Reinvigorating GPT

  8. Slide 8: Notes

    Notes AjuoO esn feuosied JOS The GPT Group

  9. Slide 9: Reinvigorating GPT

    For personal use only Reinvigorating GPT GPT has returned to Strength, Stability and Earnings Growth and is on track to being Australia’s “Best Performing” property group ƒ Working investors’ capital hard ƒ Developing quality assets ƒ Engaging the best people ƒ Enriching the community 9

  10. Slide 10: Notes

    10 For personal use only Notes

  11. Slide 11: Highlights

    For personal use only Highlights 9 Realised operating income $205.8 million (up 12.5%) 9 Comparable income growth 3.8% 9 $580 million raised within wholesale funds (GWOF) 9 Charlestown Square and One One One Eagle Street on target 9 Average forecast debt cost reduced by 0.7%, rating increased to A-

  12. Slide 12: Other Key Information

    For personal use only Other Key Information Notes ROI per ordinary security (adjusted)(1) 6 months 6 months to Jun 2010 30 Jun 10 Weighted average number of securities (million) 1,855.5 Realised operating income (ROI) ($m) 205.8 Less distribution on exchangeable securities ($m) 12.4 Total ($m) 193.4

  13. Slide 13: Result Summary

    Result Summary Strength, stability and earnings growth For personal use only 6 months 6 months 30 Jun 10 30 Jun 09 Realised Operating Income (ROI) from continuing operations ($m) 197.2 168.5 Discontinuing operations ($m) 8.6 14.5 Total Realised Operating Income ($m) 205.8 183.0 A-IFRS net profit/(lo

  14. Slide 14: Core portfolio historical performance

    Other Key Information Notes Core portfolio historical For personal use only performance Internal rate of return (IRR) 2000 - 2009 Retail 10.8% Office 9.9% Industrial/Business Parks 10.0% Total 10.5% Note: Excludes wholesale fund assets, homemaker centres and any divestments. 14 IRR is unlevered, bas

  15. Slide 15: Strong Core Portfolio

    Strong Core Portfolio 3.8% comparable income growth For personal use only Investments(1) Comparable Weighted Weighted Occupancy(2) (%) income growth average lease average cap rate (%) (%) expiry(2) (%) (years) Retail 47.4 4.0 - 6.25 99.5 Office(3) 19.7 3.9 5.3 7.20 95.7 Industrial/Business 8.6 2.2 6

  16. Slide 16: Notes

    16 For personal use only Notes

  17. Slide 17: Strategy

    For personal use only Strategy

  18. Slide 18: Notes

    18 For personal use only Notes

  19. Slide 19: Our Strategy

    For personal use only Our Strategy Our Purpose We create and sustain environments that enrich people’s lives Our Strategy We own and actively manage a diversified portfolio of quality Australian property assets, delivering long term benefits For our investors… For our customers… We are a secure, rel

  20. Slide 20: Notes

    20 For personal use only Notes

  21. Slide 21: Strategy Journey

    Strategy Journey Reinvigorating GPT For personal use only Re‐capitalisation S&P rating A‐ Strategic capital Working capital allocation hard Exit of non‐core Refinement of Reduce debt costs Additional revenue assets strategy High productivity opportunities Board refresh Management Organisational High

  22. Slide 22: Notes

    22 For personal use only Notes

  23. Slide 23: Strategic Focus 2010: Closing the NTA gap

    Strategic Focus 2010 Closing the NTA gap For personal use only Theoretical Security Price Impact of Initiatives Being Reviewed 23

  24. Slide 24: Notes

    24 For personal use only Notes

  25. Slide 25: Strategic Focus 2010/11

    Strategic Focus 2010/11 Driving for best performance For personal use only ƒ Working capital hard ƒ Delivering accretive acquisitions and developments ƒ Achieving sustainable growth through customer and revenue focus ƒ Enhancing our culture and capabilities 25

  26. Slide 26: Notes

    26 For personal use only Notes

  27. Slide 27: Focus on enhancing culture

    Reinvigorating GPT Focus on enhancing culture For personal use only ƒ Accountability ƒ Customer focus ƒ Excellence - Better informed decisions - Rigorous processes - Innovation 27

  28. Slide 28: Notes

    28 For personal use only Notes

  29. Slide 29: Operations

    For personal use only Operations

  30. Slide 30: Retail Valuations

    Other Key Information Notes Valuations For personal use only ƒ 60% of all retail assets valued externally year All information includes GPT owned assets and GPT’s interest in to June 2010 GWSCF, unless otherwise stated. ƒ Portfolio weighted average cap rate(1) 6.25%, (6.26% Dec 09), (6.26% Jun 09) R

  31. Slide 31: Retail Portfolio

    Retail Portfolio Performance driven by high occupancy For personal use only (1) ƒ Comparable income up 4.0% ƒ Comparable centre MAT growth 1.4% ƒ Lower sales growth reflects stimulus in 2009 ƒ Yield differential (based on quality) re-emerging Key Operating Metrics 30 Jun 10 30 Jun 09 Comparable inco

  32. Slide 32: Specialty Lease Expiry Profile

    Other Key Information Notes Specialty Lease Expiry Profile By Base Rent For personal use only Note: Excluding non-core Homemaker City Portfolio and assets under development. Excludes tenancies over 400 sqm. GPT Retail Specialty Total MAT Growth 32 Note: Excludes development affected centres, non-cor

  33. Slide 33: Retail Portfolio: Improved sales growth expected in 2011

    Retail Portfolio Improved sales growth expected in 2011 For personal use only ƒ 150 basis point increase in interest rates over the last year has impacted household budgets, leading to weak sales growth over 2010 ƒ Improvements in economic, employment and wages growth expected to support improved sa

  34. Slide 34: Office Valuations

    Other Key Information Notes Valuations For personal use only ƒ 79% of all office assets valued externally All information includes GPT owned assets and GPT’s interest in GWOF, year to June 2010 unless otherwise stated. ƒ Portfolio weighted average cap rate 7.20%, (7.27% Dec 09), (7.13% Jun 09) Offic

  35. Slide 35: Office Portfolio

    Office Portfolio Performance reflects quality For personal use only ƒ Comparable income up 3.9% ƒ 95.7% space committed, above market (90.8%) ƒ Weighted average lease term 5.3 years (by area) ƒ 530 Collins refurbished to 5 Star NABERS Energy rating (HSBC Centre refurbishment in progress) GPT Versus

  36. Slide 36: Lease Expiry by Area

    For personal use only Other Key Information Notes (1) Lease Expiry by Area (as at 1 July 2010) 36 (1) Individual GPT and GWOF expiry profiles available in additional disclosures.

  37. Slide 37: Office Portfolio: Market conditions to improve

    Office Portfolio Market conditions to improve For personal use only ƒ Positive net absorption in first half National Prime Gross Effective Rents ƒ Supply constraints expected to continue ƒ Rental growth and occupancy levels forecast to improve in 2011 ƒ Vacancy expected to peak in 2010 with future r

  38. Slide 38: Industrial Valuations

    Other Key Information Notes Valuations For personal use only ƒ 50% of all industrial assets valued externally year to June 2010 ƒ Portfolio weighted average cap rate 8.45%, (8.43% Dec 09), (8.25% Jun 09) Industrial Portfolio - Weighted Average Capitalisation Rate (WACR) 38

  39. Slide 39: Industrial/Business Park Portfolio

    Industrial/Business Park Portfolio Solid performance For personal use only ƒ Comparable income up 2.2% Structured Rent Increases ƒ Portfolio occupancy 97.0% (by income) ƒ Average lease expiry 6.9 years ƒ Average increase (by income) 3.3%(1) ƒ 30,000 sqm of leasing achieved 6 months to June 2010 ƒ 5

  40. Slide 40: Lease Expiry by Income

    For personal use only Other Key Information Notes Lease Expiry by Income (as at 1 July 2010) 40

  41. Slide 41: Industrial/Business Park: Positive demand outlook

    Industrial/Business Park Portfolio Positive demand outlook For personal use only ƒ Demand outlook positive as inventories and imports rise ƒ Tenant enquiry robust across retail and logistics ƒ New supply below historical average with limited speculative development ƒ Positive rental growth in 2011 a

  42. Slide 42: Notes

    42 For personal use only Notes

  43. Slide 43: Australian Funds Management: Market leading performance

    Australian Funds Management Market leading performance For personal use only ƒ Strong performance against Fund Summary peers(1) Fund Metrics GWOF GWSCF - GWSCF No. 1 (retail) Total Assets $3.1b $2.0b - GWOF No. 1 (office) GPT Investment $895.6m $595.7m - Prudent capital management GPT Investment 33.

  44. Slide 44: Notes

    44 For personal use only Notes

  45. Slide 45: Australian Funds Management: Enhanced returns to GPT

    Australian Funds Management Enhanced returns to GPT For personal use only ƒ GPT income $52.2 million (six At Current Investment Level(1) GWOF (%) GWSCF (%) Consolidated (%) months to June 2010) 30 June 2010 Weighted - GWOF distributions: $23.9 million Average Cap Rate 7.29 6.68 7.02 Distribution Yie

  46. Slide 46: Notes

    46 For personal use only Notes

  47. Slide 47: Opportunity to further improve returns

    Australian Funds Management Opportunity to further improve returns For personal use only ƒ GPT to reduce holdings At Assumed 20% Investment Level(1) GWOF (%) GWSCF (%) Consolidated (%) - Enhances return on capital 30 June 2010 Weighted Average Cap Rate 7.29 6.68 7.02 - Ability to further extend rang

  48. Slide 48: Developments Complete and Underway

    For personal use only Other Key Information Developments Complete and GPT Funds Underway 2010 ($m) ($m) Charlestown Square 470 - One One One Eagle Street 197 210 Melbourne Central (Stage 1) 30 - 7 Parkview Drive 60 - 530 Collins Street (complete) - 25 Erskine Park Stage 2 (complete) 19 - ƒ Other pas

  49. Slide 49: Development: Disciplined approach

    Development Disciplined approach For personal use only Criteria for Investment Development Targets 3 Earnings accretive Accretive initial yields 3 Funding capacity IRR targets 3 Consistent with portfolio strategy Retail 10-13% 3 Appropriate risk profile Office 11-14% 3 Best use of investors’ capital

  50. Slide 50: Charlestown Square

    Other Key Information Notes Charlestown Square For personal use only ƒ Development expands the Centre to 88,000 sqm ƒ Targeting ecological footprint 30% less than a standard centre - Gas fired co-generation plant for electricity and air conditioning - Solar thermal technology Charlestown Square ($m)

  51. Slide 51: Charlestown Square expansion

    Developments Underway Charlestown Square expansion For personal use only ƒ $470 million, construction on program - First opening (Level 1 food offer) August 2010 - Expansion to complete late 2010 - ‘Backfill’ of existing centre first half 2011 ƒ Strong leasing - Majors all secured - 220 of 240 speci

  52. Slide 52: One One One Eagle Street

    For personal use only Other Key Information Notes One One One Eagle Street (GPT share) ($m) Spent to 30 June 2010 89 Remaining to be spent 2010 estimate 35 2011 estimate 73 Total 197(1) One One One Eagle Street (sqm) One One One Eagle St 64,000 Terms agreed (approx 20%) 13,000 Leasing Target by PC (

  53. Slide 53: One One One Eagle Street

    Developments Underway One One One Eagle Street For personal use only ƒ $600 million, commenced May 2008 ƒ On program for late 2011 completion ƒ Leasing consistent with commerce ƒ Target minimum yield 7%(1) ƒ Terms agreed for approx 13,000 sqm (20%) ƒ Progressed to Level 35 53 (1) Fully leased.

  54. Slide 54: Development land

    Other Key Information Notes Development land For personal use only ($m) Newcastle CBD 49.5 Erskine Park 65.0 17 Berry Street 5.0 Rouse Hill - Joint Venture (GPT Interest) 6.7 Talavera Road 10.2 54

  55. Slide 55: Industrial/Business Park and Retail developments

    Developments Underway Industrial/Business Park and Retail For personal use only ƒ Erskine Park development - Target facility – 12,700 sqm complete Feb 2010 - Year 1 yield 9% - Seeking further pre-commitments for remaining 140,000 sqm ƒ 7 Parkview Drive commenced August 2010 - $60 million development

  56. Slide 56: Notes

    56 For personal use only Notes

  57. Slide 57: Development: Long list of opportunities

    Development Long list of opportunities For personal use only Pipeline GPT Funds ($m) ($m) Sydney Olympic Park 360 - Q Centre - 290 Wollongong Central - 250 Erskine Park (Stages 3-5) 220 - Highpoint Shopping Centre 50 150 300 Lonsdale Street 170 - Melbourne Central Retail (Stage 2) 45 - Austrak Busin

  58. Slide 58: Sustainability recognition

    Other Key Information ƒ 2010 recognition For personal use only - Rouse Hill Town Centre: ULI Award for Excellence and Innovation - Workplace6: PCA Award for Sustainable Development - VIC Premier's Sustainability Awards - Large Business winner - NSW DECCW Green Globe Awards - Commercial Property Sust

  59. Slide 59: Sustainable Communities: A competitive advantage

    Sustainable Communities A competitive advantage For personal use only ƒ GPT recognised locally and globally as the world leading property group in sustainability − Dow Jones Sustainability Index Global Real Estate Super Sector Leader − Leader in the Environmental Real Estate Index (Maastricht/Berkel

  60. Slide 60: Notes

    60 For personal use only Notes

  61. Slide 61: Financial Overview

    For personal use only Financial Overview

  62. Slide 62: Notes

    62 For personal use only Notes

  63. Slide 63: Segment performance

    2010 Interim Result Segment performance For personal use only Segment 6 months 6 months Comments 30 Jun 10 30 Jun 09 ($m) ($m) Retail 134.7 140.4 Ð Asset sales Comparable income up 4% Office 58.0 57.6 Ï Comparable income up 3.9% Industrial/Business Park 27.1 24.5 Ï Comparable income up 2.2% Australi

  64. Slide 64: Notes

    64 For personal use only Notes

  65. Slide 65: Realised Operating Income to Statutory Result

    2010 Interim Result Realised Operating Income to Statutory Result For personal use only 6 months 6 months 6 months 12 months 30 Jun 10 31 Dec 09 30 Jun 09 31 Dec 09 ($m) ($m) ($m) ($m) Core Business(1) 264.8 261.7 272.8 534.5 Non-core Operations 20.0 26.3 23.6 49.9 Financing and corporate overheads

  66. Slide 66: Notes

    66 For personal use only Notes

  67. Slide 67: Management expenses

    2010 Interim Result Management expenses For personal use only 6 mths 6 mths 6 mths 12 mths Expenses ($m) 30 Jun 10 31 Dec 09 30 Jun 09 31 Dec 09 Corporate Expenses 15.0 20.2 13.5 33.7(1) Portfolio Expenses 19.1 17.6 12.6 30.2 Tax Benefit 2.7 2.0 1.0 3.0 Total Management Expenses 36.8 39.8 27.1 66.9

  68. Slide 68: Gearing and Interest Cover

    Other Key Information Notes Gearing For personal use only 30 Jun 10 ($m) Total assets 9,476.9 Less: intangible assets (41.2) Total tangible assets 9,435.7 Current borrowings 1,670.1 Non-current borrowings 764.8 Total borrowings 2,434.9 Headline Gearing 25.8% Net Gearing(1) 25.5% Interest Cover 30 Ju

  69. Slide 69: Management expenses: maximising operational leverage

    2010 Interim Result Management expenses: maximising operational For personal use only leverage ƒ ‘Jaws’ measure - Comparable NOI June 2010 growth to Management Expense growth ƒ Need to balance cost focus with 3.8% ‘Jaws’ = 2.0% revenue focus ƒ Maximise ‘Jaws’ - maximise additional 1.8% earnings Ongo

  70. Slide 70: Notes

    70 For personal use only Notes

  71. Slide 71: Capital Management

    For personal use only Capital Management

  72. Slide 72: Notes

    72 For personal use only Notes

  73. Slide 73: Capital Management Strategy

    Capital Management Strategy Goals For personal use only Objectives Progress 9 $600 million new/$200 million extended Flatten maturity profile and extend 9 5 and 7 year facilities announced – tenor lengthens tenor Diversify debt sources 8 Bond market soft/expensive Improve credit rating 9 S&P upgrade

  74. Slide 74: Credit metrics

    Other Key Information Credit metrics ƒ Balance sheet will be managed to benchmarks established across key credit metrics For personal use only ƒ Benchmarks are consistent with ‘A category’ credit ratings ƒ GPT comfortably within all benchmarks 23.6% Dec’09 25.5% Jun’10 40% covenant Balance sheet gea

  75. Slide 75: Balance sheet overview

    2010 Interim Result Balance sheet overview For personal use only 30 Jun 10 31 Dec 09 Total assets ($b) 9.5 9.2 Total debt ($b) 2.4 2.2 Gearing(1) (%) 25.5 23.6 Interest cover(2) (x) 4.1 2.9 ƒ Weighted average cost of debt (including fees and margins) 7.49% ƒ Weighted average term to maturity 3.3 yea

  76. Slide 76: Sources of debt funding

    Other Key Information Sources of debt funding (30 June 2010) For personal use only Sources of Drawn Debt Sources of Debt Facilities 76

  77. Slide 77: Debt Maturity Profile

    Debt Maturity Profile(1) New and extended facilities improve duration For personal use only ƒ Weighted average facility term to maturity of 3.3 years (from Oct 2010) v medium term target of > 4 years ƒ New debt lines totalling $800 million maturing 2015 and 2017 have improved maturity profile 77 (1)

  78. Slide 78: Credit markets overview

    Other Key Information Credit markets overview For personal use only A$ Corporate Issuance Debt Capital Markets ƒ Market volatility starting to subside however investors remain sensitive to macroeconomic data and other news flow ƒ Demand for REITs and other corporate bond issuance has improved in glo

  79. Slide 79: Liquidity Profile – 2010

    Liquidity Profile – 2010 Well positioned For personal use only ƒ Significant liquidity headroom - Estimated position at end 2010 covers current capital commitments, 2011 expiries and progress towards 2012 expiry ƒ Ongoing liquidity headroom dependent on - Status of credit markets - Progress on addre

  80. Slide 80: Debt cost

    Other Key Information Debt cost (at end of June 2010) For personal use only Debt Interest rate ($m) (%) Hedged debt 2,073 6.04 Floating debt 362 3.00 Total debt 2,435 5.59 Margin 1.10 Fees 0.80 All-in cost of funds 7.49 ƒ Interest expense $64 million(1) for 6 months to 30 June 2010 (1) Netted for in

  81. Slide 81: Average Cost of Debt

    Average Cost of Debt(1) Reduced by 0.7% For personal use only 2.6% 1.9% 2.1% 5.6% 5.4% 5.6% ƒ Cost of debt 7.5% at June 2010 ƒ Average cost of debt forecast at 7.5% for 2010, lower than Feb 10 estimate - Cancellation of excess undrawn lines - Use of new favourable bank loan terms instead of MTNs 81

  82. Slide 82: Notes

    82 For personal use only Notes

  83. Slide 83: Summary of Financials

    For personal use only Summary of Financials ƒ Solid operating result - core business units contributing strongly ƒ Balance sheet remains in very strong position ƒ Clear Capital Management Strategy in place with significant progress made against objectives ƒ Credit metrics very healthy and consistent

  84. Slide 84: Notes

    84 For personal use only Notes

  85. Slide 85: Outlook

    For personal use only Outlook

  86. Slide 86: Notes

    86 For personal use only Notes

  87. Slide 87: Outlook: Signs of improvement

    Outlook Signs of improvement For personal use only ƒ The Australian economy will continue its recovery ƒ Investors are cautiously gaining confidence ƒ Recent transactions indicate valuations have stabilised ƒ Bank risk appetite continues to improve for strong credits ƒ Bond markets showing signs of

  88. Slide 88: Notes

    88 For personal use only Notes

  89. Slide 89: Outlook

    For personal use only Outlook ƒ Retail sales growth expected to improve in 2011 ƒ Office and industrial demand improving with supply constraints expected to continue ƒ Targeting - Total Returns > 9% - Average EPS growth of CPI +1% over 3 years(1) - Leading relative total securityholder return ƒ Expe

  90. Slide 90: Notes

    90 For personal use only Notes

  91. Slide 91: GPT's Highlights

    For personal use only GPT’s Highlights 9 Realised operating income $205.8 million (up 12.5%) 9 Comparable income growth 3.8% 9 $580 million raised within wholesale funds (GWOF) 9 Charlestown Square and One One One Eagle Street on target 9 Average forecast debt cost reduced by 0.7%, rating increased

  92. Slide 92: Questions

    For personal use only Questions

  93. Slide 93: Appendices

    For personal use only Appendices

  94. Slide 94: Core Portfolio

    Core Portfolio 92% of real estate investments For personal use only June 2010 December 2009 94 (1) US Seniors, GWOF & GWSCF based on GPT’s equity interest.

  95. Slide 95: Core Portfolio: Contributing majority of income

    Core Portfolio Contributing majority of income(1) For personal use only June 2010 June 2009 95 (1) Based on realised operating income.

  96. Slide 96: Remaining Non-Core Assets

    For personal use only Remaining Non-Core Assets Asset Asset Value(1) Income(2) 30 Jun 10 6 months Jun 10 ($m) ($m) Ayers Rock Resort 300.0 10.0 US Seniors Housing 204.6 11.4 Remaining Homemaker City Portfolio(3) 193.2 8.7 Interest in DAF/GRP 33.8 2.3 Ayers Rock Resort US Seniors Housing Occupancy 45

  97. Slide 97: Increase in Disclosures

    For personal use only Increase in Disclosures ƒ Income and capex by property - Core portfolio (income and fair value schedule) ƒ Funds - Income by asset - Valuations and cap rates per asset - Fair values and cap rates per asset - Income by category (distribution versus fees) - Total return by Fund ƒ

  98. Slide 98: Securities on Issue

    For personal use only Securities on Issue Number of Securities Opening balance 1 Jan 2010 9,277,584,743 5 to 1 security consolidation completed 19 May 2010 (7,422,055,312) 30 Jun 2010 balance post consolidation(1) 1,855,529,431 98 (1) Excludes exchangeable securities, which if converted at current c

  99. Slide 99: NTA Movement

    For personal use only NTA Movement Net No. NTA per Assets Securities security ($m) (million) ($) NTA position at 31 December 2009* 6,636.0 9,599.5 0.69 Acquisitions 13.0 Additions 303.9 Disposals (42.7) Revaluations 49.6 Movement in Cash/Receivables/Other (23.6) Movement in Assets 300.2 9,599.5 0.03

  100. Slide 100: Look Through Gearing

    For personal use only Look Through Gearing 30 Jun 10 GPT GWOF GWSCF US US Retail European Other(2) Group Seniors Funds Housing ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Share of assets of non-consolidated entities Group total tangible assets 9,435.7 9,435.7 - - - - - - (i) Plus: GPT share of assets of

  101. Slide 101: Core Assets Under Management

    For personal use only Core Assets Under Management Balance Funds Joint Owner Total Assets Sheet Share Under Assets Management ($m) ($m) ($m) ($m) Retail 4,571.6 2,024.0 418.7 7,014.3 Office 1,832.8 3,074.1 93.3 5,000.2 Industrial/Business 794.5 - - 794.5 Parks Total 7,198.9 5,098.1 512.0 12,809.0 10

  102. Slide 102: Debt Funded Investment Capacity at 30% Gearing

    For personal use only Debt Funded Investment Capacity at 30% Gearing Debt Current Investment Gearing Capacity (%) ($m) Balance Sheet 25.5 $600 Wholesale Funds - Office 11.6 $900(1) - Retail 9.9 $590 Total $2,090 ƒ Additional capacity available through Capital Partners, Co-owners and Associates ƒ Cri

  103. Slide 103: Current Debt Facilities: GPT bonds

    Current Debt Facilities GPT bonds For personal use only Tranche Outstanding A$m Maturity Date Fixed/ (equiv) Indexed Rate (%) Fixed MTN 100 7-Nov-2010 6.25 Floating MTN 123 7-Nov-2010 Fixed MTN(1) 199 22-Aug-2013 Floating MTN 12 22-Aug-2013 CPI indexed 85 10-Dec-2029 8.23 Total Borrowings 519 103 (1

  104. Slide 104: Current Debt Facilities: Bank facilities

    Current Debt Facilities Bank facilities For personal use only Tranche Outstanding Maturity Date Limit A$m Available A$m (equiv) A$m (equiv) (equiv) Euro Multi Option Syndicated 338 26-Oct-2010 1,462 1,125 Multi Option Bilateral - 22-Aug-2011 175 175 Bank Facility – 111 Eagle St 40 30-Nov-2011 151 11

  105. Slide 105: Hedging Profile

    For personal use only Hedging Profile ƒ Average drawn debt for 2010, based on current commitments: $2.4 billion ƒ Projected hedging to remain ~ 85% at December 2010 ƒ Hedge profile indicates potential over hedging caused by optionality in GPT’s hedge book - may be mitigated by steepening of the forw

  106. Slide 106: Projected AUD interest rate hedging

    Balance Sheet Projected AUD interest rate hedging For personal use only Hedging Position as at Average Rate on Principal amount of Principal amount of hedged balance excl derivative financial fixed rate Margins instruments borrowings ($m) ($m) 30 June 2010 6.04% 1,889 184 30 June 2011 5.91% 2,572 84

  107. Slide 107: Projected AUD interest rate hedging

    Balance Sheet Projected AUD interest rate hedging For personal use only 107

  108. Slide 108: USD interest rate hedging

    Balance Sheet USD interest rate hedging For personal use only Hedging Position as at Average Rate on Principal amount hedged balance of derivative excl Margins financial instruments (US$m) 30 June 2010 - - 30 June 2011 5.02% 130 30 June 2012 5.02% 130 30 June 2013 5.02% 130 30 June 2014 5.02% 130 30

  109. Slide 109: USD interest rate hedging

    Balance Sheet USD interest rate hedging For personal use only 109

  110. Slide 110: Retail Portfolio ($5.2 billion)

    Retail Portfolio ($5.2 billion)(1) Sub sector by diversity For personal use only Sub sector Asset Quality Regional 94% Sub Regional 1% Neighbourhood 1% Homemaker 4% 110 (1) Includes $595.7 million equity investment in GWSCF.

  111. Slide 111: Retail Portfolio: Top ten tenants

    Retail Portfolio Top ten tenants For personal use only (1) % Income 1. Woolworths 6.5% 2. Wesfarmers 5.9% 3. Myer 4.0% 4. Just Group 2.7% 5. Hoyts 2.0% 6. Colorado Group 1.5% 7. Prouds 1.4% 8. Luxottica Group 1.3% 9. Sussan 1.2% 10. Red Group Retail 1.1% 111 (1) Based on gross rent (including turnov

  112. Slide 112: Retail Portfolio: Sales summary

    Retail Portfolio Sales summary For personal use only 112

  113. Slide 113: Retail Portfolio: Sales growth v long term trend

    Retail Portfolio Sales growth v long term trend For personal use only 113 Source: GPT Sales Reports. Represents Portfolio Moving Annual Turnover (MAT), excluding developments and Homemaker City Portfolio.

  114. Slide 114: Comparable change in retail sales by category

    Retail Portfolio Comparable change in retail sales by category For personal use only Period to 30 June 2010 12 Months 6 Months 3 Months Department Stores 1.8% 3.7% 1.0% Discount Department Stores -0.9% -6.1% -8.9% Supermarkets 3.7% 1.4% 1.3% Cinemas 12.7% 15.5% 6.7% Clothing & Shoes/Bags/Accessories

  115. Slide 115: Consumer Sentiment

    Consumer Sentiment Westpac Consumer Sentiment Index For personal use only CS Index Aug 10 Ï 119.2 ƒ August 2010 Consumer Sentiment reached 119.2, a level similar to the beginning of 2010 115 Source: Westpac Consumer Sentiment Index, August 2010.

  116. Slide 116: Retail Portfolio: Fair values

    Retail Portfolio Fair values (investment assets) For personal use only Property Jun 10 Fair Dec 09 Jun 10 Latest External Value Cap Rate Cap Rate Valuation ($m) (%) (%)(1) Casuarina Square $444.0 6.25 6.00 30 June 2010 Charlestown Square $751.8 6.00 6.00 31 March 2009 Dandenong Plaza $201.7 8.50 8.5

  117. Slide 117: Office Portfolio ($2.7 billion)

    Office Portfolio ($2.7 billion)(1) Geographic weighting For personal use only Asset Quality Source: Company Reports. 117 (1) Includes $895.6 million investment in GWOF.

  118. Slide 118: Office Portfolio: Top ten tenants

    Office Portfolio Top ten tenants For personal use only % income(1) 1. Commonwealth of Australia 6.9% 2. Citigroup 5.5% 3. National Australia Bank 4.6% 4. BP Australia 4.0% 5. Freehills Services 3.8% 6. State Government 3.5% 7. Commonwealth Bank of 3.2% Australia 8. PricewaterhouseCoopers 3.1% 9. Eri

  119. Slide 119: Office Portfolio: Over/under-renting by asset

    Office Portfolio Over/under-renting by asset For personal use only Offices Office Occ Office Occ Ownership Average Gross Estimated Over/Under- (%) (%) Lease Term Passing Gross rented by Area Rent Market Rent (%) (Years) ($psm) ($psm) (1) (2) (3) Australia Square, Sydney 97.0% 98.5% 50% 3.9 760 779 -

  120. Slide 120: Office Portfolio: Over/under-renting by asset

    Office Portfolio Over/under-renting by asset For personal use only Offices Office Occ Office Occ Ownership Average Gross Estimated Over/Under- (%) (%) Lease Term Passing Gross rented by Area Rent Market Rent (%) (Years) ($psm) ($psm) (1) (2) (3) Darling Park 1 & 2, Sydney 97.4% 97.8% 50% 8.4 734 672

  121. Slide 121: Office Portfolio: Fair values

    Office Portfolio Fair values (investment assets) For personal use only Property Jun 10 Fair Dec 09 Jun 10 Latest External Value Cap Rate Cap Rate Valuation ($m) (%) (%) (1) Australia Square, Sydney $269.9 7.15 7.15 31 March 2009 MLC Centre, Sydney $381.8 7.25 7.15 31 March 2009 Melbourne Central Tow

  122. Slide 122: Industrial/Business Park Portfolio ($795 million)

    Industrial/Business Park Portfolio ($795 million) Geographic weighting For personal use only 122

  123. Slide 123: Industrial/Business Park: Top ten tenants

    Industrial/Business Park Portfolio Top ten tenants For personal use only % income(1) 1. Coles Myer 16.3% 2. Australian Pharmaceutical 14.2% Industries 3. Steinhoff Asia Pacific 12.4% 4. Goodman Fielder 10.9% 5. Vodafone Australia 10.2% 6. SuperCheap Auto 8.7% 7. Mitsubishi Motors 7.8% 8. Effem foods

  124. Slide 124: Industrial/Business Park: Fair values

    Industrial/Business Park Portfolio Fair values (investment assets) For personal use only Property Jun 10 Fair Value Dec 09 Jun 10 Latest External ($m) Cap Rate Cap Rate Valuation (%) (%) (1) 18-24 Abbott Road, Seven Hills $13.5 10.00 10.00 31 December 2008 Austrak Business Park, Somerton (50%) $139.

  125. Slide 125: Industrial/Business Park: Fair values

    Industrial/Business Park Portfolio Fair values (investment assets) For personal use only Property Jun 10 Fair Value Dec 09 Jun 10 Latest External Valuation ($m) Cap Rate Cap Rate (%) (%) (1) 4 Holker Street, Silverwater $30.0 8.50 8.50 31 December 2008 92-116 Holt Street, Pinkenba $15.3 9.25 9.00 31

  126. Slide 126: Australian Funds Management: Fees

    Australian Funds Management Fees For personal use only ƒ Funds management fee structure - Base fee 45 bps per annum of Asset Value - Performance fee 15% of the outperformance above 10 year bond yield plus 3% per annum (post base management fee) - Fees capped at 90 bps per annum ƒ Property management

  127. Slide 127: Australian Funds Management: Ownership composition

    Australian Funds Management Ownership composition For personal use only GWSCF No. % Fund GWOF No. % Fund GPT 1 33.4% GPT 1 33.8% Domestic Super Funds 6 20.7% Domestic Super Funds 16 38.4% Domestic - Other 8 13.8% Domestic - Other 5 7.0% Offshore Pension Funds 4 18.7% Offshore Pension Funds 6 12.8% S

  128. Slide 128: Fair values: GWOF

    Australian Funds Management Fair values: GWOF (investment assets) For personal use only Property Jun 10 Fair Value Dec 09 Jun 10 Latest External Valuation ($m) Cap Rate Cap Rate (%) (%)(1) Darling Park 1 & 2, Sydney $556.5 6.75 6.75 31 March 2010 Darling Park 3, Sydney $275.0 7.00 7.00 31 March 2010

  129. Slide 129: Fair values: GWSCF

    Australian Funds Management Fair values: GWSCF (investment assets) For personal use only Property Jun 10 Fair Value Dec 09 Jun 10 Latest External ($m) Cap Rate Cap Rate Valuation (%) (%)(1) Carlingford Court 167.9 7.50 7.50 31 December 2009 Chirnside Park 200.0 6.75 7.00 31 March 2010 Forestway Shop

  130. Slide 130: Capital management: GWOF

    Australian Funds Management Capital management: GWOF For personal use only ƒ Gearing 11.6% ƒ $578 million equity raised - $414 million new equity - Strong demand from existing and new investors - 6 new investors (51%) ƒ Weighted average cost of debt June quarter 7.8% - Includes fees and margin of 2.

  131. Slide 131: Capital management: GWSCF

    Australian Funds Management Capital management: GWSCF For personal use only ƒ Gearing 9.9% ƒ Weighted average cost of debt for June quarter 8.4% - Includes fees and margin of 2.3% - Weighted average term 1.5 years ƒ Drawn debt 82% hedged - Weighted average term 4.2 years 131

  132. Slide 132: Individual debt lines

    Australian Funds Management Individual debt lines For personal use only Wholesale Funds: Loan Facilities Facility Limit Facility Expiry Amount ($m) Currently Drawn ($m) GWOF Syndicated Facility $300 27-Jun-11 $106 One One One Eagle Street Facility $151 30-Nov-11 $43 Term Facility $60 18-Dec-12 $60 B

  133. Slide 133: Contact Information

    For personal use only Contact Information Michael Cameron Donna Byrne Michael O’Brien Chief Executive Officer and Head of Investor Relations and Chief Financial Officer Managing Director Corporate Affairs Tel: +61 2 8239 3565 Tel: +61 2 8239 3515 Tel: +61 2 8239 3544 Mob: +61 410 437 597 Mob: +61 40

  134. Slide 134: Disclaimer

    For personal use only Disclaimer 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

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