GPT 2013 SEPTEMBER QUARTER <<<<<<<< RESULT - - PowerPoint PPT Presentation

1 1

GPT 2013 SEPTEMBER QUARTER <<<<<<<< RESULT UPDATE

2 2

SEPTEMBER QUARTER HIGHLIGHTS

Delivering on core property principles

2

Highp hpoint nt e expans nsion n deliv ivered s sig ignif ific icant reval aluati ation u uplift Lo Low gear aring w wit ith $2.8 .8 b billi lion cap apac acit ity(1)

1)

Gu Guidance u e upgraded ed target eting a g at least st 6% 6% E EPS g S growth for 2013 2013 GW GWOF and nd GW GWSCF th the be best t performing fund unds i in n the he Mer ercer er/IPD PD Unlisted ed Po Pooled ed Property Fund und Ind Index GW GWSCF succes essfull lly r raised ed $178 m 178 million, w with $569 m 569 million n raised o

• ver t

the he l last 12 12 mont nths hs GPT leadership position in sustainability continues as evidenced by Green Globe awards, DJSI Sustainability Index and GRESB results

(1) Includes investment capacity of GWOF and GWSCF

Rob

• bust p

por

• rtfoli

lio

• metric

ics m main aintain ined

3 3

INVESTMENT MANAGEMENT

Resilient portfolio maintains solid fundamentals

PORTFOLIO SUMMARY

As a at 30 30 Sept eptem ember ber 2013 2013 Por

• rtfol
• lio
• Size

WALE LE Oc Occupa pancy WAC ACR Retail $4.4bn 4.3 years 99.6% 6.00% Office $2.8bn 5.4 years 95.4%(1) 6.78% Logistics & Business Parks $1.0bn 5.6 years 95.4% 8.27% Total $8.3bn 4.9 years 96.8% 6.51%

(1) Includes Heads of Agreement

3

4 4

RETAIL

Occupancy levels remain steady

30 30 Sep 2013 ep 2013(2) 30 Jun 2013 Comparable total centre sales growth(1) 0.3% 1.0% Comparable specialty sales growth(1) 0.8% 1.1% Specialty sales psm(1) $9,174 $8,984 Specialty occupancy costs(1) 18.2% 18.2% Occupancy rate 99.6% 99.5% Weighted average capitalisation rate 6.00% 6.03%

(1) Includes GPT and GWSCF assets and excludes Homemaker assets and assets under development. Growth is for the 12 months compared to the prior 12 months (2) Erina Fair divested and excluded from 30 Sep 2013 analysis

4

5 5

RETAIL

The cautious consumer environment remains

Specialties breakdown

5

0.3%

• 2.7%
• 1.5%

3.5%

• 7.8%

4.0% 0.8% 8.1% 4.5% 1.2% 0.8%

• 0.1%
• 1.0% -1.0%
• 4.8%
• 7.9%
• 10%
• 8%
• 6%
• 4%
• 2%

0% 2% 4% 6% 8% 10% Total Centre Dept Store DDS Supermarket Mini & Other Majors Other Retail Total Specialties Retail Services Food Catering Mobile Phones Apparel Food Retail General Retail Jewellery Homewares Leisure

Comparable C e Change i e in Annual Retail S Sales G es Grow

• wth b

by Categ egor

• ry

Note: Includes GPT and GWSCF assets and excludes development impacted centres. Growth for the 12 months compared to the prior 12 months.

6 6 0% 1% 2% 3% 4% 5% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Annual Real GDP Growth

IMF Australian Economic Growth Forecast(2)

(1) Data source: RBA Oct-13 (2) Data source: IMF World Economic Outlook Oct-13 (3) Data source: ASX, monthly rests. ABS Established Houses Index (weighted average of 8 capital cities), quarterly rests (4) Data source: Westpac-MI Consumer Sentiment Index, base index=100. ABS Retail Trade, seasonally adjusted

Forecast

6

RETAIL

Early indications of growth driver improvement

Supp pportive m mone netary p poli licy a and we d weaker d doll llar Stable e e econom

• mic g

grow

• wth a

anticipated ed

0.0 0.2 0.4 0.6 0.8 1.0 1.2 2003 2005 2007 2009 2011 2013 0% 1% 2% 3% 4% 5% 6% 7% 8% Exchange Rate Cash Rate

Cash Rate and Exchange Rate(1)

Cash Rate (LHS) $A/$US (RHS)

• 60%
• 40%
• 20%

0% 20% 40% 60%

• 25%
• 15%
• 5%

5% 15% 25% 2003 2005 2007 2009 2011 2013 Moving Annual Growth Moving Annual Growth

House Prices and S&P/ASX 200(3)

House Prices (LHS) ASX 200 (RHS)

Cons nsum umer we wealt lth i h impr proving Con

• nsu

sumer er s sentiment st stabilisi sing

80 90 100 110 120 130

• 2%

0% 2% 4% 6% 8% 10% 2003 2005 2007 2009 2011 2013 Index Moving annual % change

Consumer Sentiment and Retail Sales Growth(4)

Australian Retail Turnover (LHS) Consumer Sentiment (RHS)

7 7

OFFICE

Portfolio metrics remain solid

30 30 Sep 2013 ep 2013 30 30 Jun 2013 2013 Occupancy (including terms agreed) 95.4% 95.2% Weighted average lease expiry 5.4 years 5.6 years Leases signed during the quarter 26,110 sqm 19,310 sqm Terms agreed at period end 16,790 sqm 27,560 sqm Weighted average capitalisation rate 6.78% 6.78%

8

5% 6% 11% 6% 8% 12% 9% 5% 7% 12% 3% 16% Vacant 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+

Office P e Portfol

• lio L
• Lease E

se Expiry P Prof

• file (

e (by A Area)

8 8

OFFICE

Solid work on retaining existing tenants

 Solid activity year to date with 72,840 sqm of signed leases

 Renewals representing 78% of September quarter 2013 leasing activity

Ass sset St Statu tus Te Tenant Sqm qm Te Term 8 Exhibition Street Signed Lease UBS 4,950 sqm 12 years Brisbane Transit Centre Signed Lease Australia Post 4,160 sqm 5 years Melbourne Central Tower HoA Rigby Cooke 2,230 sqm 10 years Riverside Centre Signed Lease Marsh 1,870 sqm 5 years 2 Park Street Signed Lease Chubb 1,740 sqm 7 years

LEASING TRANSACTIONS

9

9 9

OFFICE

Demand showing signs of improvement

10

 Leading indicators suggesting space markets passing the trough

– NAB business confidence survey showing stages of improvement on a rolling twelve month basis – Prime grade net absorption for Eastern Seaboard CBD average starting to recover from a three year decline – Strongest quarter of net absorption in Q3, since mid 2009 – On a rolling 12 months basis, the ANZ job ads has also turned up from its decline and has been increasing for the last 3 months

(1) Data source: GPT and National Australia Bank. Rolling annual monthly results aggregation (2) Data source: GPT and Jones Lang LaSalle. Q3 2013

Eastern Seaboard CBDs: Prime Grade Net Absorption(2) NAB Business Confidence Survey(1)

• 20
• 15
• 10
• 5

5 10 15 Dec 03 May 04 Oct 04 Mar 05 Aug 05 Jan 06 Jun 06 Nov 06 Apr 07 Sep 07 Feb 08 Jul 08 Dec 08 May 09 Oct 09 Mar 10 Aug 10 Jan 11 Jun 11 Nov 11 Apr 12 Sep 12 Feb 13 Jul 13

• 200,000
• 150,000
• 100,000
• 50,000

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000

Jun 03 Dec 04 Jun 06 Dec 07 Jun 09 Dec 10 Jun 12 Dec 13

Square Metres

Quarterly Growth Annual Growth

10

10

LOGISTICS & BUSINESS PARKS

Stable portfolio metrics

30 30 Sep 2013 ep 2013 30 Jun 2013 Occupancy 95.4% 98.5% Weighted average lease expiry 5.6 years 5.4 years Leases signed during the quarter 37,580 sqm 36,750 sqm Weighted average capitalisation rate 8.27% 8.27%

12

6% 1% 7% 13% 3% 31% 17% 1% 4% 0% 3% 14% Vacant 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+

Logistics a s and B Busi sines ess P s Parks L s Lease se Expiry (By A Area)

11

11

LOGISTICS & BUSINESS PARKS

Demand driven by logistics companies

 Supply and demand forecast for CY13 likely to be near 10 year averages and at a similar level to 2012  Logistics providers and major retailers continue to provide the majority of leasing demand  Overall rents have modestly increased during the third quarter and over the past 12 months  Evidence of cap rate tightening for prime product with solid lease covenants

13

(1) Data source: GPT and Jones Lang LaSalle. Q3 2013

Industrial Project Completions(1) Industrial Leasing Activity (by industry sector)(1)

1.35 0.83 0.50 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2007 2008 2009 2010 2011 2012 2013 (f) Total Gross Lettable Area (milllon sqm)

Under Construction Completed

15% 25% 39% 27% 16% 22% 30% 26%

• 500,000

1,000,000 1,500,000 2,000,000 2,500,000 2007 2008 2009 2010 2011 2012 2013 YTD Avg.

Manufacturing Wholesale & Retail Trade Transport and Storage Other

12

12

LOGISTICS & BUSINESS PARKS

Two new acquisitions in logistics

Quar arry Road ad, Y Yat atal ala, Q QLD  $44.5 million  Prime logistics facility in SE QLD  Built in 2009  Three tenants with a 2.4 year WALE  Initial Yield 10.09% Pine R e Roa

• ad,

d, Y Yen ennor

• ra, NSW

 $43.6 million  Strategically located logistics facility  Fully leased to DB Schenker with a 2.3 year WALE  Initial Yield 9.43%

13

Quarry Road, Yatala, QLD Pine Road, Yennora, NSW

LBP BP Portfol

• lio
• Grow
• wth S

Summary  In Jan 2012 – $0.8 billion portfolio  At Sep 2013 – $1.4 billion (including developments)  Have undertaken $307 million in acquisitions  Current developments total $313 million  Seeking further value add opportunities

13

13

FUNDS MANAGEMENT

Both Funds continue to perform strongly

• 11.3% one year total return
• Ranked highest in the Mercer/IPD Unlisted

Property Fund Index over one year

• Successfully raised $178m of equity,

completing the $500m target capital raise with a total of $569m raised

• Gearing reduced to 16.4%
• Highpoint cap rate compression

resulting in an upward revaluation

• f $42m
• Achieved global number 6 ranking, and

number 1 for retail in GRESB

• 10.8% one year total return
• Number 1 performing office fund over
• ne, three and five years
• 2nd overall fund in the Mercer/IPD

Unlisted Property Fund Index over one year

• Global leader (listed and unlisted)

in the 2013 Global Real Estate Sustainability Benchmark (GRESB),

• ut of 543 entries
• GPT internalised the property

management of eight GWOF assets

14

GW GWOF GW GWSCF

14

14

FUNDS MANAGEMENT

Growth in FUM to $7.2 billion

GW GWOF GW GWSCF 30 30 Sep 13 ep 13 30 Jun 13 30 30 Sep 13 ep 13 30 Jun 13 GPT Ownership Interest (%) 20.2% 20.1% 20.4% 21.9% Number of assets 15 15 10 10 AUM (Funds under Management) $4,076m $4,021m $3,168m $3,070m Gearing 12.1% 12.4% 16.4% 25.3% One Year Total Return (post-fees) 10.8% 10.6% 11.3% 9.3%

KEY FUND METRICS

15

15

15

CAPITAL MANAGEMENT

Maintaining a disciplined approach

30 30 Sep 2013 ep 2013 30 Jun 2013 Total borrowings ($m) $2,141m $2,046m Gearing (%)(1) 21.2% 19.9% Weighted average cost of debt 5.05% 5.21% Weighted average term to maturity 6.0 years 6.6 years 30 30 Sep 2013 ep 2013 30 Jun 2013 Standard & Poor’s A– (stable) A– (stable) Moody’s A3 (stable) A3 (stable)

GPT BALANCE SHEET CREDIT METRICS

(1) Based on net debt

16

16

16

46% 11% 4% 19% 5% 11% 4% Domestic bank debt Foreign bank debt Secured bank debt Domestic MTNs Foreign MTNs USPP CPI Bonds

305 216 75 405 100 425 250 50 146 196 85

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2014 2015 2016 2017 2018 2019 2022 2025 2028 2029 Facilities

CAPITAL MANAGEMENT

Long and diversified debt expiry profile

 $270 million purchased through buyback (year to date)  $2.8 billion capacity(1) with diversified borrowings and long flat maturity profile

Debt m t matu turity pro rofile Sources o es of debt bt 17

A$ millions

(1) Includes investment capacity of GWOF and GWSCF

17

17

GUIDANCE

Upgraded guidance for 2013

 Targeting EPS(1) growth of at least 6% for 2013  Payout ratio of 80% of ROI

(1) EPS defined as Realised Operating Income (ROI) per ordinary security

19

18

18

APPENDICES<<<<<<<<

19

19

CAPITAL MANAGEMENT

Hedging profile

21

3.89% 3.77% 3.75% 3.74% 3.70% 3.72% 3.73% 3.72% 3.71% 4.06% 3.89% 3.92% 3.87% 500 1,000 1,500 2,000 2,500 3,000 3,500 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 $ m millio ions Forecast Debt Interest rate swaps Fixed rate debt WA fixed rate

20

20

RETAIL

Specialty monthly sales growth

Note: Includes GPT and GWSCF assets and excludes development impacted centres. Represents the growth for the month compared to the corresponding month in the prior year.

22

0.6%

• 0.3%

3.6%

• 1.5%

4.2% 0.9%

• 2.9%

2.6% 1.7%

• 1.3%

0.6% 2.0% 1.3%

• 4%
• 3%
• 2%
• 1%

0% 1% 2% 3% 4% 5% Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13

21

21

RETAIL

Retail portfolio sales performance

Moving ng A Annual T ual Turno nover Occup cupanc ancy C Costs ( (%) Cent ntre N Nam ame Owner er Cent ntre M MAT $P $PSM Compar arab able le Cent ntre M MAT Gro Growth ( (%) Speci cialt alty MAT $P T $PSM Compar arab able le Speci cialt alty M MAT Gro Growth ( (%) Centre ( e (%) Speci cialt alty (%) %) Carlingford Court GWSCF 6,747 0.5% 8,852 0.7% 8.6% 16.9% Casuarina Square GWSCF/GPT 8,388 0.9% 10,685 4.4% 9.7% 15.6% Charlestown Square GPT 6,109 4.3% 8,989 4.8% 11.4% 16.9% Chirnside Park GWSCF 8,083

• 3.0%

10,137

• 2.8%

7.2% 15.3% Dandenong Plaza GPT 3,887

• 6.7%

6,315

• 8.6%

11.5% 19.0% Forestway GWSCF 15,822 2.0% 10,240

• 3.0%

6.4% 15.3% Melbourne Central Retail GPT 7,636 2.2% 9,228 1.2% 18.1% 21.7% Macarthur Square GWSCF/APPF 6,190

• 0.2%

9,048

• 0.1%

11.0% 17.9% Norton Plaza GWSCF 13,800 0.9% 10,995

• 1.5%

6.0% 13.8% Parkmore GWSCF 7,056 1.0% 8,338

• 0.9%

7.9% 15.3% Rouse Hill Town Centre GPT 6,424 3.8% 7,011 4.2% 9.3% 15.9% Sunshine Plaza GPT/APPF 8,391 3.6% 11,192 3.8% 10.8% 18.3% Westfield Penrith(1) GPT/Westfield 7,136 0.2% 10,325 0.7% 12.4% 20.1% Westfield Woden(1) GWSCF/Westfield 6,466

• 8.3%

8,675

• 5.2%

11.8% 20.1% Total P al Portfoli lio 6, 6,928 928 0. 0.3% 3% 9, 9,174 174 0. 0.8% 8% 10. 10.9% 9% 18. 18.2% 2% Centres es u under er d develop

• pmen

ment Highpoint GPT/GWSCF/HPG 6,004 27.1% 9,360 18.6% 14.2% 21.0% Wollongong Central GWSCF 5,176

• 6.9%

8,470

• 8.0%

14.2% 19.2%

23

(1) Analysis provided by Westfield GPT reports in accordance with the Shopping Centre Council of Australia guidelines

22

22

RETAIL

Valuation summary

As a

at 30 30 Sept eptem ember ber 2013 2013 As a at 30 30 June e 2013 2013 Inter eres est Valu luer er Valu luation

• n

Cap p Rate te Fai air V Val alue Cap p Rate te GP GPT P Por

• rtfoli
• lio

Highpoint(1) 33.33% Savills $306.4m 5.50% $291.5m 5.75% GWSCF CF Po Portfolio Highpoint(1) 50% Savills $919.3m 5.50% $873.7m 5.75% Wollongong Central(2) 100% CBRE $407.2m 6.50% $374.5m 6.50%

24

(1) Valuation Includes Homemaker Maribyrnong (2) Valuation undertaken on an ‘As if Complete’ less costs to completion

23

23

OFFICE

Valuation summary

As a

at 30 30 Sept eptem ember ber 2013 2013 As a at 30 30 June e 2013 2013 Inter eres est Valu luer er Valu luation

• n

Cap p Rate te Fai air V Val alue Cap p Rate te GWOF OF P Por

• rtfoli
• lio

800/808 Bourke Street 100% JLL $385.0m 6.50% $372.5m 6.50% 28 Freshwater Place 50% M3 $117.5m 7.00% $115.0m 7.00% The Zenith 50% Colliers $121.0m 8.50% $117.1m 8.50%

25

24

24

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 provided in this presentation is for general information only. It is not intended to be investment, legal or other advice and should not be relied upon as such. You should make your own assessment of, or obtain professional advice about, the information described in this paper to determine whether it is appropriate for you. You should note that returns from all investments may fluctuate and that past performance is not necessarily a guide to future

• performance. Furthermore, while every effort is made to provide accurate and complete information, The GPT Group does not

represent or warrant that the information in this presentation is free from errors or omissions, is complete or is suitable for your intended use. In particular, no representation or warranty is given as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in the information - such material is, by its nature, subject to significant uncertainties and contingencies. To the maximum extent permitted by law, The GPT Group, its related companies,

• fficers, employees and agents will not be liable to you in any way for any loss, damage, cost or expense (whether direct or

indirect) howsoever arising in connection with the contents of, or any errors or omissions in, this presentation. Information is stated as at 30 September 2013 unless otherwise indicated. All values are expressed in Australian currency unless otherwise indicated.

26