Slide 1: Interim Result 2017
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Slide 2: Agenda
SECTION SPEAKER AGENDA 2017 lnterim Result Highlights Bob Johnston Financial Summary & Capital Management Anastasia Clarke Retail Vanessa Orth Office & Logistics Matthew Faddy Funds Management Nicholas Harris Summary & Outlook Bob Johnston INTERIM RESULT 2017
Slide 3: 2017 Interim Result Highlights
RESULTS PRESENTATION 3 2017 Interim Result Highlights 2017 Interim Result Highlights Key Outcomes in the first half 3.5% 7.0% 16.9% $ 4.88 24.1% Growth in Growth in Total Net Tangible Assets Net gearing Funds From Operations Distribution Return per security per security per security Group highlights
Slide 4: Progressing strategic priorities
Progressing strategic priorities Progressing strategic priorities Business Outcomes 4.7% $480M 96.9% 5.2YRS 5.39% $10.7B Portfolio like for Valuation Total portfolio Weighted Weighted Funds Under like income uplift occupancy Average Lease average cap rate Management growth Expiry INVESTMENT PORTFOLI
Slide 5: Finance & Treasury
FINANCE & TREASURY INTERIM RESULT 2017
Slide 6: Financial Summary
Financial Financial Summary Summary 6 MONTHS TO 30 JUNE ($ MILLION) 2017 2016 CHANGE CO Stron Funds From Operations (FFO) 279.8 269.8 3.7% grow Valuation increases 480.0 379.9 Treasury items marked to market (3.7) (65.7) Other items (3.8) 2.4 Net Profit After Tax (NPAT) 752.3 586.4 28.3% Cont Funds
Slide 7: Segment Result
RESULTS PRESENTATION 7 Segment Segment Result Result 6 MONTHS TO 30 JUNE ($ MILLION) 2017 2016 CHANGE Retail 157.0 148.6 Office 127.9 107.1 Logistics 46.2 49.7 Funds Management 17.5 29.2 Net Income 348.6 334.6 4.2% Net interest expense (47.2) (50.1) Corporate overheads (14.2) (13.8) Tax expense (7.4
Slide 8: Capital Management
Capital Management Capital Management • NTA increased 6.3 per cent to $4.88 underpinned by strong portfolio revaluation gains • Gearing remains low • Hedging levels increased and average rate reduced KEY STATISTICS JUN 2017 DEC 2016 Average Hedging At Dec 2016 At Jun 2017 Net tangible assets per sec
Slide 9: Retail
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Slide 10: Retail Highlights
Retail Highlights Retail Highlights Key Portfolio Statistics 3.8% 2.1% $11,100 99.6% $120.6m 5.28% Portfolio like for Specialty sales Specialty sales Total portfolio Valuation Weighted like income MAT growth productivity occupancy uplift average cap rate growth per sqm • Total 12 month portfolio ret
Slide 11: Retail Valuations
RESULTS PRESENTATION 11 Retail Valuations Retail Valuations • 4 assets externally valued in GPT portfolio for 6 months to June 2017 • Delivering a total revaluation uplift of $120.6m • Weighted average cap rate compression of 11bps to 5.28 per cent Insert Photo VALUATION UPLIFT 1H 2017 (MILLION) PRO
Slide 12: Retail Leasing
Retail Leasing Retail Leasing • Highly productive portfolio attracting strong retailer demand reflected in stable leasing spreads and occupancy • Active remixing ensuring assets are responding to shopper trends and upweighting to retailers in growth categories • New consumer brands continue to enter
Slide 13: Retail Sales
RESULTS PRESENTATION 13 Retail Sales Retail Sales $11,100 Portfolio MAT Growth by Category 3.4% Specialty Sales 15.4% per sqm 12.7% 12.1% Total Centre MAT 3.9% 8.6% Growth 4.9% 5.2% Comparable Specialty 3.6% 3.4% 3.1% 3.0% per sqm Growth 2.7% 2.5% 2.1% 15.4% -1.7% -4.1% 4.9% Mini Major MAT Growth -7
Slide 14: Retail Development
Retail Development Retail Development Sunshine Plaza Macarthur Square • $240m retail expansion opened in March 2017 • David Jones, H&M, Coles, Fresh Food Market, Dining Precinct, and 45 specialties • Aldi and Harris Scarfe due to open end 2017 Wollongong Central • $68m repositioning including introd
Slide 15: Active Management
RESULTS PRESENTATION 15 Active Management Active Management Shifting the retail mix based on trends and new retail supply Local & Created by Me Retail Shift [2014 – 2017] Emerging Artisan for Me Evidenced % of GLA Variance retailer Knowing where it Personalised and and trends executed Specialty crea
Slide 16: Enhancing The Experience To Drive Preference And Productivity
Enhancing The Experience To Drive Preference And Productivity Enhancing the Experience to drive preference and productivity Executing on our Data Strategy Smart Investments in Technology Focused on driving market share GPT 2017 Interim Result 16 RESULTS PRESENTATION 16
Slide 17: Retail Market Outlook
RESULTS PRESENTATION 17 Retail Market Retail MarketOutlook Outlook Australian Retail Sales GPT Retail Income GPT Portfolio forecast to grow at 4.7% over the next solid income growth supported by stable 75% located in catchments with strong population 10 years* occupancy and flat leasing spreads grow
Slide 18: Office
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Slide 19: Office Highlights
RESULTS PRESENTATION 19 Office Highlights Office Highlights Key Portfolio Statistics 5.8% $321.2m 97.4% 49,300m2 5.25% 5.3yrs Portfolio like for Valuation Total portfolio Leases Weighted Office like income uplift occupancy signed average cap rate WALE growth Portfolio commentary OFFICE FINANCIAL 1H
Slide 20: Office Valuations
Office Valuations Office Valuations • Total valuation gain for six months of $321.2m WEIGHTED AVERAGE VALUATION UPLIFT • Cap rate compression of 30bps to 5.25% Sydney Melbourne Brisbane • MLC Centre uplift of $105.2m following the sale of co-owner’s 50% interest +10.9% +2.6% +0.8% VALUATION UPLIFT 1
Slide 21: Office Leasing
RESULTS PRESENTATION 21 Office Leasing Office Leasing • 49,300sqm signed leases and 92,200sqm terms agreed 1H 2017 • Sydney exposure to be expanded by 42,000sqm of Metropolitan developments • Opportunity to capture income growth, with over one third of Sydney and Melbourne leases to expire 2017-2020
Slide 22: Active Asset Management
Active Asset Management Active Asset Management Citigroup Centre, Sydney Darling Park 3, Sydney 580 George Street, Sydney • 12 month total return of 17.8% • 12 month total return of 18.6% • 12 month total return of 19.3% • Over 30,000sqm leased in 3 years, • Lobby and retail upgrade completed • Lobb
Slide 23: Office Development
RESULTS PRESENTATION 23 Office Development Office Development 32 Smith St, Parramatta • Design competition awarded to Fender Katsalidis Architects • Construction is targeted to commence in 2018 with completion in 2020 • Expected end value of over $230 million - yield on cost over 7% Property Details
Slide 24: Office Development
Office Development fice Development Office Development Bay p & Wharf, SmithCockle Corner Bay& Wharf, Streets, Phillip Smith Streets, Sydney Parramatta uing engagement • Continuing with authorities engagement on proposed with authorities on proposed me scheme • Approximately ximately 70,000sqm office
Slide 25: Office Market Outlook
RESULTS PRESENTATION 25 Office Market Outlook Office Market Outlook • Sydney and Melbourne CBDs have been experiencing high levels of demand for prime grade accommodation despite the overall net absorption rate for Sydney declining from peak levels • Demand for prime grade accommodation in the Brisb
Slide 26: Office Market Outlook
Office Market Outlook Office Market Outlook • Vacancy to remain at low levels in the next 2-3 years in the Sydney and Melbourne CBDs, below average long term rates • Melbourne CBD has largest supply pipeline, however is forecast to experience the highest demand • Despite improving conditions in the
Slide 27: Logistics
LOGISTICS INTERIM RESULT 2017
Slide 28: Logistics Highlights
Logistics Highlights Logistics Highlights Key Portfolio Statistics 3.8% $38.2m 95.0% 139,400m2 6.39% 8.0yrs Portfolio like for Valuation Total portfolio Leases Weighted Logistics like income uplift occupancy signed average cap rate WALE growth Portfolio commentary LOGISTICS FINANCIAL 1H 2017 1H 2016
Slide 29: Logistics Development
RESULTS PRESENTATION 29 Logistics Development Logistics Development • Completions and projects underway of $215m • Strong 1H leasing outcomes achieved with WALE of 9.6 years • Four projects under construction in Sydney and Brisbane • Future development pipeline of 67 hectares 1H 2017 COMPLETIONS 100
Slide 30: Logistics Market Outlook
Logistics Market Outlook Logistics Market Outlook Sydney Melbourne Brisbane Outperformance expected in the Take up of existing stock is creating a Demand improving from low base medium term more balanced market Enquiry for product increasing, pursing Increasing exposure through Deals secured, drivin
Slide 31: Funds Management
RESULTS PRESENTATION 31 Heading FUNDS MANAGEMENT INTERIM RESULT 2017
Slide 32: Funds Management Highlights
unds Management Highlights undsFunds Funds Management Management Highlights Highlights Management Highlights unds Management business delivered a strong Total eturn of 17.0% for the full year TOTAL RETURN GPT unds Management business delivered • Funds Management a strong aTotal business delivered st
Slide 33: Fund Update
RESULTS PRESENTATION 33 Fund Update Fund Update GPT Wholesale Office Fund GPT Wholesale Shopping Centre Fund • 13.5% total return for the 12 months to 30 June 2017 • 13.4% total return for the 12 months to 30 June 2017 • Continued strong portfolio fundamentals including • New Fund terms unanimously
Slide 34: Summary & Outlook
Summary & Outlook Summary & Outlook • Progressing metropolitan office • Focus on Eastern Seaboard markets development projects • Upgrade to guidance reflects benefitting investment returns and performance of underlying income growth • Commencing works on next round portfolio of Logistics development
Slide 35: Disclaimer
RESULTS PRESENTATION 35 Disclaimer 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 in
Slide 36: 2017 Interim Result Data Pack
2017 INTERIM RESULT DATA PACK
Slide 37: Contents
CONTENTS GPT Overview 36 Financial Performance 42 Retail Portfolio 54 Office Portfolio 68 Logistics Portfolio 84 Development 98 Funds Management 100 Note: All information included in this pack includes GPT owned assets and GPT’s interest in the Wholesale Funds (GWOF and GWSCF) unless otherwise state
Slide 38: GPT Overview
2017 INTERIM RESULT GPT OVERVIEW GPT Overview
Slide 39: GPT Overview
GPT Overview GPT’s core portfolio consists of high quality properties in the retail, office and logistics sectors. The portfolio includes some of the most iconic buildings in Australia and award winning developments. GPT Portfolio Diversity Retail Portfolio Office Portfolio Logistics Portfolio As at
Slide 40: GPT Portfolio Metrics
GPT OVERVIEW 37 GPT Portfolio Metrics Across the three sectors, GPT has maintained high occupancy and a long WALE. Portfolio Size Comparable Income Growth1 WALE Occupancy WACR Retail $5.61b 3.8% 4.1 years 99.6% 5.28% Office $4.77b 5.8% 5.3 years 97.4% 5.25% Logistics $1.48b 3.8% 8.0 years 95.0% 6.39
Slide 41: GPT Securityholder Overview
GPT Securityholder Overview GPT Securityholders by Geography GPT Securityholders by Type As at 30 June 2017 As at 30 June 2017 Australia & New Zealand 57% Domestic Institutions 48% North America 22% Foreign Europe (ex UK) 8% Institutions 43% Asia 7% Retail UK 6% Investors 9% GPT OVERVIEW 38
Slide 42: Glossary
GPT OVERVIEW 39 Glossary A-Grade As per the Property Council of Australia’s ‘A Guide to Office Building Quality’ GFA Gross Floor Area AFFO Adjusted Funds From Operations: Adjusted Funds From Operations is GLA Gross Lettable Area defined as FFO less maintenance capex, leasing incentives and one-off G
Slide 43: Glossary (continued)
NPAT Net Profit After Tax Specialty Tenants Retail tenancies with a GLA below 400 sqm NTA Net Tangible Assets Sqm Square metre Ordinary Securities Ordinary securities are those that are most commonly traded on the ASX: Total Portfolio Return The unlevered portfolio return as calculated by IPD The AS
Slide 44: GPT Overview
GPT OVERVIEW 41 530 Collins Street, Melbourne
Slide 45: Financial Performance
2017 INTERIM RESULT FINANCIAL PERFORMANCE Financial Performance
Slide 46: Financial Summary
Financial Summary 6 months to 30 June 2017 2016 Change Funds From Operations ($m) 279.8 269.8 Up 3.7% Net profit after tax ($m) 752.3 586.4 Up 28.3% FFO per ordinary security (cents) 15.54 15.02 Up 3.5% FFO yield (based on period end price) 6.5% 5.6% Up 90 bps Distribution per ordinary security (cen
Slide 47: Results Summary
FINANCIAL PERFORMANCE 43 Results Summary Segment performance 6 months to 30 June ($m) 2017 2016 Retail Operations net income 152.0 141.7 Development net income 5.0 6.9 157.0 148.6 Office Operations net income 127.3 106.5 Development net income 0.6 0.6 127.9 107.1 Logistics Operations net income 45.1
Slide 48: Funds From Operations to Adjusted Funds From Operations
Funds From Operations to Adjusted Funds From Operations 6 months to 30 June ($m) 2017 2016 Core business 348.6 334.6 Non-core operations – 5.0 Financing and corporate overheads (68.8) (69.8) Funds From Operations 279.8 269.8 Maintenance capital expenditure (21.4) (25.5) Lease incentives (including r
Slide 49: NTA Movement
FINANCIAL PERFORMANCE 45 NTA Movement Securities on Issue Number of Securities (million) Opening balance 1 January 2017 1,798.0 Issue of securities 3.6 30 June 2017 balance 1,801.6 Net Assets No. of Securities NTA per Security NTA Movement ($m) (million) ($) NTA position as at 31 December 2016 8,246
Slide 50: Capital Management Summary
Capital Management Summary Gearing ($m) As at 30 June 2017 Interest Cover ($m) 30 June 2017 Total assets 12,532.9 Funds From Operations 279.8 Less: intangible assets (32.2) Add: taxes deducted 7.4 Less: Cross currency swap assets (169.5) Add: Finance Costs for the period 47.7 Total tangible assets 1
Slide 51: Look Through Gearing
FINANCIAL PERFORMANCE 47 Look Through Gearing Look Through Gearing as at 30 June 2017 GPT Group GWOF GWSCF Other2 Total Share of assets of non-consolidated entities Group total tangible assets 12,331.2 12,331.2 Plus: GPT share of assets of non-consolidated entities 1,701.9 1,137.6 1,165.2 4,004.7 Le
Slide 52: Debt
Debt Debt Cost Average Debt % of Average Debt Interest Rate Sources of Drawn Debt Average for period ending 30 June 2017 ($m) (%) (%) As at OF SOURCES 30 June 2017 DEBT DRAWN Hedged debt 1,906 67% 2.9% Floating debt 938 33% 1.9% Total debt1 2,845 100% 2.5% Margin 1.2% Domestic MTNs 30% Fees 0.4% Dom
Slide 53: Debt Facilities
FINANCIAL PERFORMANCE 49 Debt Facilities Current Debt Facilities as at 30 June 2017 Current Forward Start Debt Facilities Outstanding ($m) (equiv) Maturity Date Limit ($m) (equiv) Available ($m) (equiv) Start Date Maturity Date Limit ($m) (equiv) Medium Term Notes 30 19 Nov 17 30 0 30 Oct 17 29 Nov
Slide 54: Debt Facilities (continued)
Outstanding ($m) (equiv) Maturity Date Limit ($m) (equiv) Available ($m) (equiv) Bank Bilateral 115 30 Sep 21 115 0 Bank Bilateral 0 30 Nov 21 100 100 Bank Bilateral 100 12 Dec 21 100 0 Medium Term Notes 50 16 Aug 22 50 0 Medium Term Notes 200 7 Nov 23 200 0 US Private Placement 146 19 Jun 25 146 0
Slide 55: Debt Maturity Profile
FINANCIAL PERFORMANCE 51 Debt Maturity Profile Debt Maturity Profile As at 30 June 2017 (A$ millions) 600 513 415 394 261 263 200 200 200 150 146 75 69 64 50 30 5 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20
Slide 56: Liquidity Profile
Liquidity Profile Liquidity Profile As at 30 June 2017 0.6 0.5 0.4 0.3 ($bn) 0.2 0.1 0.0 Cash balance Undrawn Current Forward Start Development/Capex Retained Debt facility Excess liquidity 30 Jun 2017 existing liquidity Facilities earnings expiries at 31 Dec 2017 facilities FINANCIAL PERFORMANCE 52
Slide 57: Hedging Profile
FINANCIAL PERFORMANCE 53 Hedging Profile Hedging Profile as at 30 June 2017 Average Rate on Hedged Balance Principal Amount of Derivative Principal Amount of Hedging Position excl Margins Financial Instruments ($m) Fixed Rate Borrowings ($m) 30 June 2017 2.77% 1,645 725 30 June 2018 2.89% 1,765 725
Slide 58: Retail Portfolio
2017 INTERIM RESULT RETAIL PORTFOLIO Retail Portfolio
Slide 59: Retail Portfolio Overview
Retail Portfolio Overview GPT is a leading owner, manager and developer of Australian retail property. GPT’s retail investments of $5.6 billion include a portfolio of assets held on the Group’s balance sheet and an investment in the GPT Wholesale Shopping Centre Fund (GWSCF). Darwin New South Wales
Slide 60: Retail Portfolio Summary
RETAIL PORTFOLIO 55 Retail Portfolio Summary The GPT retail portfolio is well positioned with a high level of occupancy at 99.6%. The retail portfolio achieved comparable income growth of 3.8% over the 6 months to 30 June 2017. Top Ten Tenants1 Geographic Weighting As at 30 June 2017 As at 30 June 2
Slide 61: Retail Portfolio Summary
Retail Portfolio Summary The high quality retail portfolio has been created over approximately 40 years and currently consists of interests in 13 shopping centres. GLA (100% 30 Jun 17 30 Jun 17 External or Annual Centre Occupancy Specialty Interest) Fair Value Cap Rate Internal Turnover Cost Sales S
Slide 62: Retail Sales Summary
RETAIL PORTFOLIO 57 Retail Sales Summary Comparable Comparable Centre MAT Centre MAT Specialty MAT Specialty MAT Specialty ($m) Growth Growth ($psm) Occupancy Cost GPT Portfolio Casuarina Square 387.5 (0.2%) (2.8%) 11,338 16.4% Charlestown Square 560.8 6.3% 4.3% 12,353 14.0% Highpoint Shopping Centr
Slide 63: Comparable Change in Retail Sales by Category
Comparable Change in Retail Sales by Category Retail sales showed positive growth over the 12 months to 30 June 2017 with total centre sales up 3.4% and specialties up 2.1%. Comparable Change in Retail Sales by Category as at 30 June 2017 MAT ($m) 12 Months Growth Department Store $103.8m (1.7%) Dis
Slide 64: Retail Sales
RETAIL PORTFOLIO 59 Retail Sales Retail specialty sales have increased 2.1% over the 12 months to 30 June 2017. Specialty MAT Growth 6.5% 5.9% 4.4% 4.2% 4.2% 3.9% 4.0% 3.6% 3.2% 2.8% 2.7% 2.6% 2.3% 2.1% 2.1% 1.8% 1.5% 1.2% 1.1% 0.5% 0.4% 0.2% Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 D
Slide 65: Lease Expiry Profile
Lease Expiry Profile Weighted Average Lease Expiry (by base rent) as at 30 June 2017¹ Major Tenants 9.9 years Mini-Major Tenants 4.4 years Specialty Tenants 2.8 years Weighted Total 4.1 years Total Centre Total Specialty Tenants 16% 18% 15% 14% 16% 16% 16% 16% 13% 9% 8%1 8% 9%1 5% 3% 2% 2% 2H 2017 2
Slide 66: External Valuation Summary
RETAIL PORTFOLIO 61 External Valuation Summary 62% of the GPT retail portfolio was valued externally in the 6 months to 30 June 2017. Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) GPT Portfolio Casuarina Square NT 50% 31 Dec 16 CBRE 313.0 5.75% Charlestown Square NSW 100% 30 Jun
Slide 67: Income and Fair Value Schedule
Income and Fair Value Schedule Income 6 months to 30 Jun ($m) Fair Value Reconciliation Fair Value Development Maintenance Lease Net Other Fair Value % of 31 Dec 16 Capex Capex Incentives Acquisitions Sales Revaluations Adjustments 30 Jun 17 Portfolio 2016 2017 Variance ($m) ($m) ($m) ($m) ($m) ($m)
Slide 68: Retail Sustainability
RETAIL PORTFOLIO 63 Retail Sustainability Water (Total) Emissions Waste % Area GLA Litres/m2 kg CO2-e/m2 Recycled/Reused GPT Portfolio Casuarina Square 54,700 2,127 89 27% Charlestown Square 93,500 591 18 67% Highpoint Shopping Centre 154,000 1,000 51 32% Melbourne Central 56,000 2,002 99 17% Rouse
Slide 69: Contribution to portfolio specialty MAT sales growth
Retail Retail – Specialty MATgrowth Specialty MAT growth 2 Contribution by asset to 2.1% Specialty MAT growth1 2.0% Contribution to portfolio specialty MAT sales growth 1.5% Melbourne Central 6.0% 1.5% 1.0% Charlestown 4.3% 0.9% Rouse Hill 0.5% Northland 3.2% Norton Plaza 0.7% 0.4% Parkmore -2.0% -2
Slide 70: Contribution to portfolio specialty MAT sales growth
RETAIL PORTFOLIO 65 Retail Retail––Specialty Specialty MAT growth MAT growth 1 Contribution by commodity group to 2.1% Specialty MAT growth1 1.5% Contribution to portfolio specialty MAT sales growth General Retail 8.0% Retail Services 1.0% 8.6% 0.8% 0.7% Food Catering 0.5% 2.7% Jewellery Leisure 0.5
Slide 71: Rouse Hill Town Centre
Rouse Hill Town Centre Rouse Hill Data Sydney Metro Northwest • New station to be located directly 42km outside the Rouse Hill Town Centre from Sydney CBD • Services expected to start in 1H 2019, with a train every 4 minutes at peak times • Travel time of 45 minutes to 425,500 Martin Place station t
Slide 72: International Retail Real Estate Markets
RETAIL PORTFOLIO 67 International Retail Real Estate Markets International Retail Real Estate Markets Shopping Centre Space • Australian shopping centre space per capita is less (Sqm per capita) than half that of the US 2.19 − Total US retail space per capita is estimated at 5.14sqm versus Australia
Slide 73: Office Portfolio
2017 INTERIM RESULT OFFICE PORTFOLIO Office Portfolio
Slide 74: Office Portfolio Overview
Office Portfolio Overview GPT’s office portfolio comprises ownership in 22 high quality assets with a total investment of $4.8 billion. The portfolio includes assets held on the Group’s balance sheet and an investment in the GPT Wholesale Office Fund (GWOF). New South Wales Victoria GPT Owned GPT Ow
Slide 75: Office Portfolio Summary
OFFICE PORTFOLIO 69 Office Portfolio Summary The GPT office portfolio has exposure to 100% Prime Grade office assets and benefits from a diversified tenant base. Top Ten Tenants1 Tenant Mix by Industry Geographic Weighting As at 30 June 2017 As at 30 June 2017 As at 30 June 2017 ANZ Banking Governme
Slide 76: Lease Expiry Profile
Lease Expiry Profile Lease Expiry Profile (by Income) 17% 14% 13% 11% 9% 9% 7% 7% 5% 5% 3% 2H 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027+ Sydney Melbourne Brisbane Note: Includes Signed Leases. OFFICE PORTFOLIO 70
Slide 77: Office Portfolio Summary
OFFICE PORTFOLIO 71 Office Portfolio Summary Office Occupancy Office NLA (100% 30 Jun 17 30 Jun 17 External or Inc. WALE Interest) Fair Value Cap Rate Internal Inc. Signed Heads of by Income State Ownership (sqm) ($m) (%) Valuation Actual Leases Agreement (Years) GPT Portfolio Australia Square, Sydn
Slide 78: Office Portfolio Summary (GWOF)
Office Occupancy Office NLA (100% 30 Jun 17 30 Jun 17 External or Inc. WALE Interest) Fair Value Cap Rate Internal Inc. Signed Heads of by Income State Ownership (sqm) ($m) (%) Valuation Actual Leases Agreement (Years) GWOF Portfolio Liberty Place, 161 Castlereagh Street, Sydney NSW 50% 56,400 620.0
Slide 79: External Valuation Summary
OFFICE PORTFOLIO 73 External Valuation Summary The entire GPT office portfolio was valued externally in the 6 months to 30 June 2017. Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) GPT Portfolio Australia Square, Sydney NSW 50% 30 Jun 17 Colliers 438.5 5.29% Citigroup Centre, Syd
Slide 80: External Valuation Summary (GWOF)
Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) GWOF Portfolio Liberty Place, 161 Castlereagh Street, Sydney NSW 50% 30 Jun 17 Urbis 620.0 4.88% DP1: 5.13% Darling Park 1 & 2, Sydney NSW 50% 31 Mar 17 KF 856.3 DP2: 5.13% Darling Park 3, Sydney NSW 100% 31 Mar 17 KF 467.0 5.13% 580
Slide 81: Office Sustainability
OFFICE PORTFOLIO 75 Office Sustainability NABERS Energy Rating (including Green Power) NABERS Water Rating 2008 2009 2010 2011 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016 GPT Portfolio Australia Square, Sydney (Tower) 4.0 4.5 5.0 4.5 4.0 4.0 4.0 4.5 4.5 3.5 4.0 4.0 4.0 4.0
Slide 82: NABERS Ratings GWOF Portfolio
NABERS Energy Rating (including Green Power) NABERS Water Rating 2008 2009 2010 2011 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016 GWOF Portfolio Liberty Place, 161 Castlereagh Street, Sydney – – – – – – 5.0 5.0 5.0 – – – – – – – 3.5 3.5 Darling Park 1, Sydney 4.5 4.0 5.5 5.5
Slide 83: Office Sustainability
OFFICE PORTFOLIO 77 Office Sustainability Water (Total) Emissions Waste Area NLA Litres/m2 kg CO2-e/m2 % Recycled/Reused GPT Portfolio Australia Square, Sydney 51,500 920 87 59% Citigroup Centre, Sydney 73,200 665 73 67% MLC Centre, Sydney 67,100 797 63 32% 1 Farrer Place, Sydney 84,800 702 94 62% M
Slide 84: Office Sustainability GWOF Portfolio
Water (Total) Emissions Waste Area NLA Litres/m2 kg CO2-e/m2 % Recycled/Reused GWOF Portfolio Liberty Place, 161 Castlereagh Street, Sydney 56,400 819 57 62% Darling Park 1 & 2, Sydney 101,900 780 36 59% Darling Park 3, Sydney 29,800 734 30 55% 580 George Street, Sydney 37,200 806 60 39% workplace ,
Slide 85: Income and Fair Value Schedule
OFFICE PORTFOLIO 79 Income and Fair Value Schedule Income Fair Value Reconciliation 6 months to 30 Jun ($m) Capex Fair Value Development Maintenance Lease Net Other Fair Value % of 31 Dec 16 Capex Capex Incentives Acquisitions Sales Revaluations Adjustments 30 Jun 17 Portfolio 2016 2017 Variance ($m
Slide 86: Office – Sydney CBD
Office Office––SydneySydneyCBD Sydney CBD CBD Office Office –– Sydney Sydney CBD CBD • Sydney continues to outperform all other CBD • Sydney continues to outperform all other CBD SydneyCBD: Sydney CBD:Rents Rentsand andIncentives Incentives(2Q17) (2Q17) markets,recording markets, recordingeffective
Slide 87: Office – Melbourne CBD
OFFICE PORTFOLIO 81 Office–––Melbourne Office MelbourneCBD Melbourne CBD CBD Office •Office • The –– Melbourne Melbourne TheMelbourne Melbourne markethas market laggedCBD haslagged CBD Sydneythis Sydney thiscycle, cycle, MelbourneCBD: Melbourne CBD:Rents Rentsand andIncentives Incentives(2Q17) (2Q17
Slide 88: Office – Brisbane CBD
Office Office––Brisbane BrisbaneCBD Brisbane CBD CBD Office Office –– Brisbane Brisbane CBD CBD • Brisbane is experiencing a slow recovery, with • Brisbane is experiencing a slow recovery, with BrisbaneCBD: Brisbane CBD:Rents Rentsand andIncentives Incentives(2Q17) (2Q17) strengtheningdemand strengt
Slide 89: Metropolitan & Mixed Use Opportunities
OFFICE PORTFOLIO 83 Metropolitan & Mixed Use Opportunities
Slide 90: Logistics Portfolio
2017 INTERIM RESULT LOGISTICS PORTFOLIO Logistics Portfolio
Slide 91: Logistics Portfolio Overview
Logistics Portfolio Overview GPT’s logistics portfolio consists of ownership in 27 high quality logistics and business park assets located across Australia’s Eastern Seaboard. New South Wales Victoria • Rosehill Business Park, Camellia • Citiwest Industrial Estate, Altona North • 10 Interchange Driv
Slide 92: Logistics Portfolio Summary
LOGISTICS PORTFOLIO 85 Logistics Portfolio Summary The logistics portfolio delivered a Total Portfolio Return of 9.6%, underpinned by a high occupancy level of 95.0% and a long weighted average lease expiry of 8.0 years. Top Ten Tenants1 Key Operating Metrics Geographic Weighting As at 30 June 2017
Slide 93: Lease Expiry Profile
Lease Expiry Profile Lease Expiry Profile 41% (by Income) 15% 15% 9% 8% 3% 3% 3% 3% 0% 0% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027+ Note: Includes Signed Leases. LOGISTICS PORTFOLIO 86
Slide 94: Logistics Portfolio Summary
LOGISTICS PORTFOLIO 87 Logistics Portfolio Summary Logistics Occupancy GLA (100% 30 Jun 17 30 Jun 17 External or Inc. WALE Interest) Fair Value Cap Rate Internal Inc. Signed Heads of by Income State Ownership (sqm) ($m) (%) Valuation Actual Leases Agreement (Years) GPT Portfolio Rosehill Business Pa
Slide 95: Logistics Portfolio Summary (continued)
Logistics Occupancy GLA (100% 30 Jun 17 30 Jun 17 External or Inc. WALE Interest) Fair Value Cap Rate Internal Inc. Signed Heads of by Income State Ownership (sqm) ($m) (%) Valuation Actual Leases Agreement (Years) 18-24 Abbott Road, Seven Hills NSW 100% 18,100 32.5 6.25% External 50.0% 50.0% 100.0%
Slide 96: External Valuation Summary
LOGISTICS PORTFOLIO 89 External Valuation Summary 64% of the logistics portfolio was valued externally in the 6 months to 30 June 2017. Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) GPT Portfolio Rosehill Business Park, Camellia NSW 100% 31 Dec 16 CBRE 79.4 6.50% 10 Interchange
Slide 97: External Valuation Summary (continued)
Valuation Capitalisation Rate State Ownership Date Valuer ($m) (%) 372-374 Victoria Street, Wetherill Park NSW 100% 31 Dec 16 CBRE 21.8 8.00% 38 Pine Road, Yennora NSW 100% 30 Jun 17 m3 52.8 7.00% 18-24 Abbott Road, Seven Hills NSW 100% 30 Jun 17 CBRE 32.5 6.25% 1 Huntingwood Drive, Huntingwood NSW
Slide 98: Income and Fair Value Schedule
LOGISTICS PORTFOLIO 91 Income and Fair Value Schedule Income 6 months to 30 Jun ($m) Fair Value Reconciliation Fair Value Development Maintenance Lease Net Other Fair Value % of 31 Dec 16 Capex Capex Incentives Acquisitions Sales Revaluations Adjustments 30 Jun 17 Portfolio 2016 2017 Variance ($m) (
Slide 99: Income and Fair Value Schedule (continued)
Income 6 months to 30 Jun ($m) Fair Value Reconciliation Fair Value Development Maintenance Lease Net Other Fair Value % of 31 Dec 16 Capex Capex Incentives Acquisitions Sales Revaluations Adjustments 30 Jun 17 Portfolio 2016 2017 Variance ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) (%) Citiwest In
Slide 100: Logistics – Sydney
LOGISTICS PORTFOLIO 93 Logistics Logistics Logistics–-Sydney Sydney - Sydney Logistics - Sydney • •Gross take-up Gross hashas take-up been strong been in the strong in first half half the first Logistics - Sydney of • of2017, Gross with pre-lease take-up 2017, activity remaining has beenactivity wit
Slide 101: Logistics – Melbourne
Logistics Logistics–--Melbourne Melbourne Logistics Melbourne Logistics - Melbourne Take-up of •• Take-up of existing existingstock stockwas waselevated elevatedinin the first the first Melbourne Industrial Supply ('000 m 2) Melbourne Industrial Supply ('000 m 2) sqm half of 2017, pre-lease activity
Slide 102: Logistics – Brisbane
LOGISTICS PORTFOLIO 95 Logistics Logistics Logistics -Brisbane Brisbane –-Brisbane Logistics- -Brisbane Logistics Brisbane • Brisbane take-up remains subdued, Brisbane Industrial Supply ('000 m 2) • Brisbane take-up remains subdued, sqm Brisbane Industrial Supply ('000 m 2) howeverthere there has be
Slide 103: Sydney Industrial Market
Sydney Industrial Market GPT Industrial Assets Erskine Park Eastern Creek 1 Erskine Park 2 Eastern Creek 3 Huntingwood Dr, Huntingwood 4 Victoria St, Wetherill Park 5 Pine Rd, Yennora 6 Rosehill Business Park, Camellia 7 Derby St, Silverwater 8 Holker St, Newington 9 Sydney Olympic Park 10 Pembroke
Slide 104: Logistics Portfolio
LOGISTICS PORTFOLIO 97 Rand, Erskine Park, Sydney
Slide 105: Development
2017 INTERIM RESULT DEVELOPMENT Development
Slide 106: Development Overview
Development Overview GPT has over $600 million in development projects currently underway across the retail, office and logistics sectors, with a significant pipeline of future development opportunities. Forecast Forecast Cost to Complete Target Total Cost Completion Sector Ownership Interest (%) ($
Slide 107: Development Overview (continued)
DEVELOPMENT 99 Development Overview (continued) Forecast Forecast Cost to Complete Target Total Cost Completion Sector Ownership Interest (%) ($m) GPT’s Share ($m) Fund’s Share ($m) Date Planned Rouse Hill Town Centre, NSW Retail 100% GPT 250 250 0 Chirnside Park, VIC Retail 100% GWSCF 85 0 85 Melbo
Slide 108: Funds Management
2017 INTERIM RESULT FUNDS MANAGEMENT Funds Management
Slide 109: GPT Funds Management Summary
GPT Funds Management Summary The Group’s Funds Management platform provides GPT with an important source of income through funds management, property management and development management fees. In addition, the platform provides GPT investors with access to a steady income stream through a significa
Slide 110: GPT Funds Management Overview
FUNDS MANAGEMENT 101 GPT Funds Management Overview Historical Growth in Funds under Management Growth in Funds under Management for the 12 months to 30 June 2017 $0.6b $0.7b $10.7b $10.4b $0.4b $10.7b $10.0b $10.4b $10.4b $9.6b $6.6b $7.1b $5.3b $5.6b Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec
Slide 111: GWOF Overview
GWOF Overview GWOF provides wholesale investors with exposure to 17 high quality office assets, located across Australia’s key CBD office markets. At 30 June 2017, the Fund had a value of $6.8 billion. GWOF Ownership Composition As at 30 June 2017 June 2017 June 2016 Number of Assets 17 18 Total Ass
Slide 112: GWOF Capital Management
FUNDS MANAGEMENT 103 GWOF Capital Management Total borrowings for the Fund at 30 June 2017 were $1,187 million resulting in net gearing of 16.9%. GWOF Capital Management Summary as at 30 June 2017 Net Gearing 16.9% Weighted Average Cost of Debt1 4.2% Fees and Margins (included in above) 1.4% Weighte
Slide 113: GWSCF Overview
GWSCF Overview GWSCF provides wholesale investors with exposure to 8 high quality retail assets. At 30 June 2017, the Fund had a value of $3.9 billion. GWSCF Ownership Composition As at 30 June 2017 June 2017 June 2016 Number of Assets 8 9 Total Assets $3.9b $3.9b Net Gearing 11.0% 15.4% One Year Eq
Slide 114: GWSCF Capital Management
FUNDS MANAGEMENT 105 GWSCF Capital Management Total borrowings for the Fund at 30 June 2017 were $443 million resulting in net gearing of 11.0%. GWSCF Capital Management Summary as at 30 June 2017 Net Gearing 11.0% Weighted Average Cost of Debt 1 4.9% Fees and Margins (included in above) 1.9% Weight