Goodman Property Trust

Full year results to 31 March 2010

May 2010

1 Contents

+ Section 01 Overview + Section 02 Financial performance + Section 03 Investment portfolio + Section 04 Development portfolio + Section 05 Outlook + Appendices

2 Section 01+

Overview

Steel and Tube, Highbrook Business Park Overview

+ Sound operating result - Operating earnings of $77.5 million (FY09, $83.8 million) - Property valuations decline of 3.3% (FY09, 10.3%) - Net property income increased by 2.4% to $106.2 million - Distributable earnings of 9.1 cpu, distribution of 8.5 cpu + Strong balance sheet - Completed $150 million Bond Issue with BBB+ Standard & Poors Rating - $53 million of asset sales completed - $175 million of bank debt refinanced - 37.0% gearing and average facility term of 2.24 years + Resilient portfolio performance - 96% occupancy and 5.8 years WALT - Continuation of development pipeline with three pre-commitments commenced

4 Section 02+

Financial performance

DHL Global Forwarding, Westney Industry Park

5 Financial overview

+ Balance sheet strengthening has impacted earnings. Distributable earnings have declined from $83.8 million (10.0 cpu) to $77.5 million (9.10 cpu)

Earnings reconciliation

6 Financial performance

Period ended March 10 ($ million) March 09 ($ million) Change (%)

Net rental income 106.2 103.7 2.4

Administrative expenses (6.8) (7.3) 7.2

Operating earnings before interest and tax 99.4 96.4 3.1

Interest (20.2) (9.4) (115.7)

Operating earnings before tax 79.2 87.0 (9.0)

Tax payable (1.7) (3.2) 46.6

Operating earnings after tax 77.5 83.8 (7.5)

Loss on realisation of Property (2.1) (0.2)

Fair value gain on swaps 13.2 2.3

Revaluation (loss)/gain (49.9) (172.8)

Tax deferred (17.8) 12.8

Performance fee (3.5) -

Changes in cash flow hedge reserve (24.4) -

(Loss)/Profit (7.0) (74.1)

Weighted average units on issue 851.1 838.8

Gross distributable EPU (c) 9.31 10.38 (10.3)

Cash distributable EPU (c) 9.10 10.00 (9.0)

Note: Values in table above are calculated to three decimal places and may not appear to sum accurately due to rounding

7 Assets and liabilities

Period ended March 10 ($ million) March 09 ($ million) Change (%)

Total assets1 1,510.4 1,564.3 (3.4)

Property assets 1,474.1 1,512.6 (2.5)

Borrowings2 544.7 533.9 2.0

Liabilities 660.9 662.1 (0.2)

Equity 849.5 902.2 (5.8)

Underlying total borrowings to property assets (%) 37.0% 35.3%

NTA backing per unit (cpu) 97.8 105.6 (7.4)

Adjusted NTA backing per unit (cpu)3 99.2 107.4 (7.6)

Note: Values in table above are calculated to three decimal places and may not appear to sum accurately due to rounding 1 Includes GMT’s proportionate share of jointly controlled entities 2 Borrowings net of cash, March 09 adjusted for proceeds of unconditional asset sale for $12.1 million which settled 2 April 2009 3 Adjusted for derivative financial instruments and deferred tax on revaluations

8 Capital management

+ Level of debt optimal for a low risk property trust + Borrowings are significantly below covenants + Weighted average hedge term of 3.6 years + Currently 72% hedged for the next year and then 67% in year two + Credit markets have improved although risks remain

9 Capital management – debt diversity

+ Goodman Bonds rated BBB+ + Raised $150 million of debt, for a 5.5 year term at 200 bps over swap + Increased tenor of debt from 1.45 years to 2.24 years

10 Earnings outlook

+ Operational Earnings outlook of 8.6 to 8.8 cpu for FY11 compared to 9.10 cpu for FY10 + Decline in operational earnings due to: - Impact of higher debt costs - Dilution from asset sales + Sustainability of earnings dependant on: - Credit margins – currently average 170 bps - Changes to tax rates – removal of building depreciation and depreciation loading would reduce FY11 operational earnings by 6% to 7% + FY10 distributions represented 93.4% of operational earnings + Board policy of distribution around 90% of operational earnings remains + Distribution guidance will be clarified following the budget

11 Section 03+

Investment portfolio

15 Show Place, Show Place Office Park

12 Portfolio performance

+ Portfolio remains 96% occupied + WALT of 5.8 years compared to 5.9 years in FY09 + 22,446 sqm leased to new customers + 91,880 sqm leased to existing customers + Completed rent review programme resulted in average growth of 2.8% - 4% growth from market reviews + Arrears at all time low of $99,000 (30 days+) or 0.1% of annual income + Three defaults in the period - Largest default – Gluck at Westney Industry Park. Annual rental - $614k - Facility leased to ADP (65% owned by Air New Zealand) - Nil lost income

13 Leasing performance

+ Major stabilised portfolio leasing deals completed throughout year:

Customer Commencement Area (sqm) Term Net annual rental

Fletcher Building 1 April 2010 3,833.8 6 years $1,190,822

Simply Logistics 1 March 2010 6,769.2 11 years $784,230

Air New Zealand 1 July 2012 4,955.0 7 years $1,345,156

ADP 1 December 2009 5,120.6 10 years $596,929

Tapper Transport 1 April 2010 6,112.0 6 years $870,000

Solid Energy 1 January 2010 3,802.0 9 years $1,263,300

Transpower 1 November 2009 1,324.3 7.2 years $352,820

Yates 18 August 2009 4,114.4 5 years $614,929

TOTAL 36,031.3 7.6 years $7,018,186

+ Active management has secured $18.2 million (15.4%) of portfolio income during the period maintaining GMT WALT at 5.8 years

14 Portfolio metrics

+ Lease expiry profile

+ 7.0% of income was due to expire in FY10 + 8.2% of income expiring in FY11

15 Asset diversity

31 March 2010

+ Continued reduction in office assets + Business park increased significantly from 22.3% to 26.0%

16 GMT customers

GMT Top 10 customers as at 31 March 2010 (by size) + Top 10 customers make up 32.3% of portfolio income

GMT customers as at 31 March 2010 (by type)

17 Valuations

+ Annual devaluation of $49.9m resulting in a total devaluation of $223 million since March 2008 + 3.3% decline in values in FY10 versus 10.3% in FY09 + Industrial portfolio remained constant while office portfolio declined by 4% and the development portfolio declined by 13% + GMT market capitalisation rate reduced from 8.7% at March 2009 to 8.6% at March 2010 + GMT market rents reduced by 1.5%, however contract rents are 6% below market reflecting vacancy of 4% + Increased divergence between prime and secondary property

Market Mar 10 Valuation Annual Weighted Valuation Summary Cap Rate Shift bps Rent Shift $M gain/loss Change % Cap Rate bps

Office Portfolio 470.9 (19.2) (3.9%) 8.72% 0.14% (2.0%) Industrial Portfolio 808.0 (1.4) (0.2%) 8.58% (0.24%) (1.1%) Development Portfolio 195.2 (29.3) (13.1%) - - -

Total 1,474.1 (49.9) (3.3%) 8.63% (0.10%) (1.5%)

Note: Values in table above are calculated to three decimal places and may not appear to sum accurately due to rounding

18 Investment market commentary

+ 2008 – lack of transactions over $5 million with lower sales driven by the economic slowdown and tightened banking criteria + 2009 – investment market rebounded with majority of sales by institutions to private investors and syndicates + Transactions throughout 2009 were dominated by office, followed by industrial and then retail

Investment sales volumes $5 million plus

2009 2008 2007

Volume Volume Volume Number Number Number $ million $ million $ million

Auckland $1,125 88 $791 67 $2,695 153

Wellington $358 23 $155 17 $630 34

Christchurch $110 9 $104 10 $157 15

TOTAL $1,593 120 $1,050 94 $3,482 204

Source: CBRE Research

Source: CBRE Research

19 Auckland investment market overview

Auckland industrial yields

+ Average prime industrial yields have compressed 6 basis points in the 6 months to March 2010

+ Average secondary Auckland industrial yields compressed 21 basis points in the six months to March 2010

Source: CBRE Research Auckland CBD office yields + Average prime Auckland CBD office yields have softened 15 basis points in the past six months

20 Source: CBRE Research Auckland occupier market

+ Occupier markets have further deteriorated in the second half of 2009 with increasing vacancies and softening rents. + Industrial and suburban office markets have been less impacted than the CBD.

Vacancy current vacancy 1 year ago Industrial All grades 6.7% 4.8% Southern Corridor office All grades 7.5% 5.2% CBD office Prime 14.3% 0.5% A Grade 10.4% 5.3%

Source: Colliers International Research 1 as at February 2010

2 as at December 2009

3 as at 31 March 2010

21 Section 04+

Development portfolio

Schneider Electric Highbrook Business Park

22 Development activity

+ Demand for design builds improved in the second half of FY10 + Pre commitments secured: - Ingram Micro, M20 Business Park - IBM, Highbrook Business Park - K mart, M20 Business Park + Competition has declined – GMT has secured three of four substantial developments in South Auckland in FY10 + Construction market highly competitive – tender pricing circa 15% down from peaks

23 Development outlook

+ GMT retains dominant platform for industrial and suburban office development + Enquiry levels continuing to build but still subdued on a relative basis + Strategy continues to focus on pre-committed development + Competitive construction environment expected to remain throughout FY11

24 Section 05+

Outlook

Corporate Express Highbrook Business Park

25 Outlook

+ Economy - Experiencing slow recovery - Increased interest rates likely - Credit markets improving + Property Market - Caution in investment market given proposed tax changes - Demand for office space remains subdued - Industrial demand returning for both design build and existing space + GMT - Well capitalised - Positioned to be opportunistic where appropriate - Ongoing diversification of capital sources - Focus is securing income from investment portfolio and development portfolio

26 Thank you+

DHL Global Forwarding Westney Industry Park

Important Notice This presentation has been prepared by Goodman (NZ) Limited as the manager of Goodman Property Trust (“GMT”). The details in this presentation provide general information only. It is not intended as investment or financial advice and must not be relied upon as such. You should obtain independent professional advise prior to making any decision relating to your investment or financial needs. This presentation is not an offer or invitation for subscription or purchase of securities or other financial products. Past performance is no indication of future performance. All values are expressed in New Zealand currency unless otherwise stated. May 2010. Appendix – GMT property portfolio

GMT Market cap 2 Property Valuation Occupancy WALE Key customers ownership rate % $m % % yrs

Highbrook Business Park + HDL Assets 50 255.5 7.25 - 8.38 100 9.3 PaperLinX, Contract Logistics, Shell, GEON, Intermech, OfficeMax, Datamail, Just Group, Ford, Corporate Express, Schneider, Steel and Tube + HBPL Assets 75 148.3 8.00 - 8.50 98 7.1 DHL, McPherson's Consumer Products, CSR Building Products, Cottonsoft, Big Chill Distribution, Synnex NZ, BMW, NZ Post, Westpac M20 Business Park 100 66.1 8.61 100 3.8 Frucor Beverages, Kimberly-Clark, Ford, Gordon & Gotch, ACC, James Halstead Flooring Limited, Titan Plant Services Fletchers West 100 43.3 9.38 91 4.5 Fletcher Building, Synovate The Gate Industry Park 100 126.0 8.25 89 7.7 Crane Distribution, Geoff Penney, Winstone Wallboards, Recall, Norman Ellison Carpets, SCA Hygiene, Design Print, Tapper Transport Westney Industry Park 100 107.6 9.00 - 9.75 100 5.5 Linfox Logistics, Daniel Silva, Supply Chain Solutions, Toll, Fliway, PacNet Savill Link 100 70.8 8.25 - 8.50 100 5.7 Toll, Furniture City, Prepared Produce, Metropolitan Glass, Holden Enterprise Park 100 44.0 9.00 92 1.2 Warehouse Stationery, Network Distribution, Fonterra, Redpaths Furniture Penrose Industrial Estate 100 36.0 9.13 100 1.7 Turners Auctions, Pyne Gould Guiness, Gilbarco Gateside Industry Park 100 24.1 9.00 81 3.8 TNL Group, EnviroWaste Services, McDowall Freight, Toll 120 Pavilion Drive 100 8.5 8.38 100 10.9 Simply Viaduct Corporate Centre 50 140.6 8.38 - 8.63 99 6.9 Vodafone, KPMG, Microsoft, Hewlett Packard, Westpac Central Park Corporate Centre 100 111.5 9.13 93 3.4 Armourguard Security, Fonterra, SIMPL Group, Fairfax, CPSO, Restaurant Brands, Salesforce, Duffill Watts Millennium Centre, Phase Two 100 67.6 8.75 94 4.6 American Express, Catalyst Risk Management, Spotless Services, MWH, Pharmacy Brands, Lollipops Educare Air New Zealand House 100 57.4 8.75 100 9.3 Air New Zealand Millennium Centre 100 56.5 8.88 98 5.4 Mighty River Power, Genesis Energy, MYOB, First Rescue & Emergency NZ Yellow HQ 100 32.2 8.38 91 9.3 Chevron, Yellow Pages, Hollywood Bakery OnGas House 100 17.6 8.75 100 3.2 Vector, BTI, Arnotts Vector Centre 100 16.1 9.25 100 0.9 Vector Southpark Industrial Estate 100 21.6 8.85 97 3.5 Tyco, Bullet Freight, Halls Refrigerated Transport, Owens Transport Glassworks Industry Park 100 21.0 8.83 95 6.2 Agmech, Tullochs, Fisher & Paykel, NZ Safety, Big Chill Distribution Show Place Office Park 50 83.5 7.85 86 4.7 IAG NZ, Solid Energy, Transpower, Holcim, Nestle, Revera

1 Net of canopies and yards. 2 Weighted average lease expiry as at 31 March 2010.

28 Appendix – GMT developments

Expected date of Estimated Net lettable Market cap Property GMT ownership practical Market value on Lease term Occupancy area 1 rate completion completion % sqm $M % years %

Highbrook Business Park + IBM NZ 50 5,187 Nov 10 9.5 8.13 8 100

M20 Business Park + Kmart 100 13,420 Jan 11 20.3 8.00 12 100 + Ingram Micro NZ 100 10,355 May 10 14.6 8.13 10 100

1 Net of canopies and yards.

29