Sydney NSW 2000
10 February 2020
2019 Annual Result Data Pack
GPT provides its 2019 Annual Result Data Pack which has been approved for release by the GPT Group Company Secretary.
-ENDS-
For more information, please contact:
INVESTORS MEDIA Brett Ward Grant Taylor Head of Investor Relations & Corporate Communications Manager Affairs +61 437 994 451 +61 403 772 123
For personal use only use personal For
Level 51, MLC Centre, 19-29 Martin Place, Sydney NSW 2000 www.gpt.com.au
2019 Annual
Result For personal use only use personal For 2019 Annual Result
Market Briefing
10 February 2020 For personal use only use personal For The GPT Group acknowledges the Traditional Custodians of the lands on which our business and assets operate, and recognises their ongoing connection to land, waters and community.
We pay our respects to First Nations Elders past, present
and emerging. For personal use only use personal For
Artwork created by Molly Wallace Agenda
4 2019 Annual Result Highlights | Bob Johnston
9 Financial Summary & Capital Management
| Anastasia Clarke
13 Office & Logistics | Matthew Faddy
26 Retail | Chris Barnett
33 Funds Management | Nicholas Harris
36 Summary & Outlook | Bob Johnston
2019 Annual Result For personal use only use personal For RESULTS PRESENTATION 4
Our Strategic + Growing our Office & Logistics portfolio Delivering attractive + High weighting to NSW and VIC markets returns Focus + Increased the development pipeline to an expected end value of approximately $5 billion1 5yr avg. Total + Total Assets Under Management of Return 13.3% $25.3 billion 5yr avg. FFOps growth 4.0%
5yr avg. DPS growth 4.5%
Shifting our TARGET 2019 FOCUS GROUP strategic SYDNEY & MELBOURNE EARNINGS COMPOSITION Office asset Logistics Office Logistics 40% Logistics NSW 20% 41% Office 16% allocation 16% 52% 36%
VIC 36%
Retail Funds Retail Retail 40% NT QLD Management 42% 43% 2% 10% 6%
1. Includes both GPT direct interest and Fund opportunities
The GPT Group | 2019 Annual Result | 10 February 2020 4 For personal use only use personal For 2019 Annual Consistently delivering strong returns Result 2.6% 4.0% $5.80 8.7% FINANCIAL FFO GROWTH DISTRIBUTION NTA PER TOTAL HIGHLIGHTS PER SECURITY GROWTH PER SECURITY RETURN SECURITY UP 3.9 PER CENT
Investment Portfolio Portfolio Revaluation $ occupancy 96.5% gains 342.2M
Like for like Weighted Average income growth 3.5% Capitalisation Rate 4.95%
161 Castlereagh Street, Sydney
For personal use only use personal For The GPT Group | 2019 Annual Result | 10 February 2020 5
RESULTS PRESENTATION 5 RESULTS PRESENTATION 6 Executing on Strategy Executing on Strategy
Office & Retail Developments Darling Park Acquisition & Development Opportunity Expected end value of $800 million Expected end value, including Cockle Bay Park development, of >$1 billion1 Current + Darling Park 1&2 and Cockle Bay Wharf 25% interest in the premium Sydney CBD $2.1 billion office and retail complex with an initial yield of 32 Smith Street, Parramatta, office - + 5.3% and average fixed rental growth profile of 4.0% per annum development + Cockle Bay Park Development Expected yield on cost of - 25% interest in a $2 billion landmark Sydney CBD office development opportunity that will provide future approximately 6.75% and an end - value >$320 million growth with an expected IRR of >12%. Development cost of approximately $400 million (GPT’s share) Proposed 2020 commencements + 300 Lonsdale office development - Expected yield on cost of >6.5% and Growing GPT’s Investment in Logistics an end value of $220 million Expected development end value of >$1 billion - Subject to securing a pre-commitment and authority approvals + Western Sydney logistics acquisitions + Andrews Road, Penrith, logistics acquisition + Melbourne Central retail expansion - Acquired five assets for $212 million with an - Construction has commenced on a 50,000sqm - $70 million expansion and an initial yield of 5.4% fund-through opportunity, leased for 10 years expected yield on cost of >6.5% + Truganina, Melbourne logistics development + Truganina, Melbourne logistics acquisition + Rouse Hill Town Centre, Sydney, retail - Completed Stage 1 (26,500sqm) with five - Secured 23,000sqm pre-leased facility for $42m expansion future stages planned due to settle on completion in 2020 - $200 million expenditure with an + Wembley Business Park, Brisbane logistics + New land acquisitions expected yield on cost of >6.0% development - Western Sydney - 36 hectares2 has been secured - Construction of first two assets underway - Western Melbourne - 48 hectares has been with an expected yield on cost of >6% secured
1. GPT direct interest
2. Excludes 10 hectares attributable to Andrews Road, Penrith, fund-through development The GPT Group | 2019 Annual Result | 10 February 2020 6 For personal use only use personal For Environmental Sustainability
The GPT Group | 2019 Annual Result | 10 February 2020 7 For personal use only use personal For
RESULTS PRESENTATION 7 RESULTS PRESENTATION 8 Social Responsibility Social Responsibility
The GPT Group | 2019 Annual Result | 10 February 2020 8 For personal use only use personal For Finance & Treasury
Annual Result 2019 For personal use only use personal For
Artists impression – 550 BourkeRESULTS Street PRESENTATION and 181 Williams Street,9 Melbourne RESULTS PRESENTATION 10 Financial Summary Financial Summary
12 Months to 31 December ($ million) 2019 2018 Change
Funds From Operations (FFO) 613.7 574.6 6.8% $ Valuation increases 342.2 910.7 880M STATUTORY NET PROFIT Treasury instruments marked to market (82.7) (39.6) AFTER TAX Other items 6.8 6.0 Net Profit After Tax (NPAT) 880.0 1,451.7 2.6% Funds From Operations (cents per stapled security) 32.68 31.84 2.6% FFO PER SECURITY GROWTH Funds From Operations (FFO) 613.7 574.6 6.8% Maintenance capex (55.2) (53.2) Lease incentives (61.0) (60.9) 4.0% DISTRIBUTION PER Adjusted Funds From Operations (AFFO) 497.5 460.5 SECURITY GROWTH Distribution (cents per stapled security) 26.48 25.46 4.0%
The GPT Group | 2019 Annual Result | 10 February 2020 10 For personal use only use personal For Segment Result Segment Result
12 Months to 31 December 2019 2018 Change Comments ($ million) Strong comparable income growth of 6.2% driven by strong leasing outcomes and Office 276.3 268.7 ▲ 2.8% higher rents. Segment result was offset by reduced income post the sale of MLC
Operations net income up 15.4% driven by acquisitions and development Logistics 121.0 109.9 ▲ 10.1% completions, offset by lower development profits
Operations net income up 0.9% due to fixed rent increases offset by lower Retail 326.0 326.2 ▼ 0.1% turnover rent, increased downtime and lower development profits
Funds Management 46.3 42.6 ▲ 8.7% Strong growth due to a 5.6% increase in assets under management
Net Income 769.6 747.4
Net interest expense (108.0) (124.4) ▼ 13.2% Lower average cost of debt by 60 basis points to 3.6%
Corporate overheads (35.3) (34.2)
Tax expense (12.6) (14.2)
Corporate (155.9) (172.8)
Funds From Operations 613.7 574.6
The GPT Group | 2019 Annual Result | 10 February 2020 11 For personal use only use personal For
RESULTS PRESENTATION 11 RESULTS PRESENTATION 12 Capital Management
DomesticDomesticDomestic ForeignForeignForeign CapitalCapital ManagementManagement CPICPICPI Bonds BondsBondsbankbankbank debt debtdebt bankbankbank 2%2%2% debtdebtdebt 2%2%2% SecuredSecuredSecured Foreign9%9%9% ModestModest gearing gearing of of 22.1% 22.1% Domestic bankbankbank debt debtdebt ++ Capital Management CPI Bonds bank SuccessfullySuccessfullySuccessfully completed completedcompleted $867 $867$867 million millionmillion equity equityequity raising raisingraising to toto bank debt 3%3%3% ++ SourcesSources ofof 2% 2% debt fundfundfund acquisition acquisitionacquisition and andand growth growthgrowth opportunities opportunitiesopportunities 9% Secured + Modest gearing of 22.1% DrawnDrawn bankCommercialCommercialCommercial debt ++ IncreasedIncreasedIncreased liquidity liquidityliquidity to toto $1.4 $1.4$1.4 billion billionbillion USPPUSPPUSPP 3%PaperPaperPaper + Successfully completed $867 million equity raising to Sources of BankBankBank Debt DebtDebt 9%9%9% IssuedIssuedIssued US$400 US$400US$400 million millionmillion of ofof debt debtdebt in inin US USUS Private PrivatePrivate DebtDebt 44%44%44% 14%14%14% ++ fund acquisition and growth opportunities Commercial PlacementPlacementPlacement market marketmarket for forfor an anan average averageaverage term termterm of ofof 12.9 12.912.9 years yearsyears AsAsDrawnAs at atat 31 3131 December DecemberDecember DebtDebtDebt Capital CapitalCapital + Increased liquidity to $1.4 billion USPP Paper andandand margin marginmargin of ofof 170 170170 basis basisbasis points pointspoints 201920192019 MarketsBankMarkets Debt 9% Issued US$400 million of debt in US Private Debt 44% 86%86%86%14% + HedgingHedging reduced reduced following following the the sale sale of of MLC, MLC, with with ++ Placement market for an average term of 12.9 years As at 31 December Debt Capital hedginghedginghedging level levellevel subsequently subsequentlysubsequently increasing increasingincreasing as asas a a aresult resultresult of ofof and margin of 170 basis points 2019 Markets DomesticDomesticDomestic MTNs MTNsMTNs thethethe equity equityequity raising raisingraising 86% + Hedging reduced following the sale of MLC, with 23%23%23% ++ S&PS&PhedgingS&P A AA and andand level Moody’s Moody’sMoody’s subsequently A2 A2A2 credit creditcredit increasing ratings ratingsratings as a result of ForeignForeignForeign MTNs MTNsMTNs 7%7%7% Domestic MTNs the equity raising $m$m$m 23% +KeyKeyS&P Statistics Statistics A and Moody’s A2 creditDec Decratings 2019 2019 DecDec 2018 2018 700700700 DebtDebt Foreign MTNs $1.4b$1.4b$1.4b 600600600 7% MaturityMaturity $m liquidityliquidityliquidity NetNetKeyNet tangible tangibletangible Statistics assets assetsassets per perper security securitysecurity Dec $5.802019$5.80$5.80 Dec $5.582018$5.58$5.58 500500500700 Debt $1.4b NetNetNet gearing gearinggearing 22.1%22.1%22.1% 26.3%26.3%26.3% 400400400600 ProfileProfile liquidity Net tangible assets per security $5.80 $5.58 AsAsMaturityAs at atat 31 3131 December DecemberDecember 300300300500 WeightedWeighted average average cost cost of of debt debt 3.6%3.6%3.6% 4.2%4.2%4.2% 201920192019 Net gearing 22.1% 26.3% Profile 200200200400 WeightedWeighted average average term term to to maturity maturity 7.77.77.7 years yearsyears 6.36.36.3 years yearsyears As at 31 December 100100100300 Weighted average cost of debt 3.6% 4.2% InterestInterestInterest cover covercover ratio ratioratio 6.7x6.7x6.7x 5.7x5.7x5.7x 2019 200000 1H1H1H2H2H2H1H1H1H2H2H2H1H1H1H2H2H2H1H1H1H2H2H2H1H1H1H2H2H2H1H1H1H2H2H2H1H1H1H2H2H2H1H1H1H2H2H2H1H1H1H2H2H2H1H1H1H2H2H2H1H1H1H2H2H2H1H1H1H2H2H2H1H1H1H2H2H2H1H1H1H2H2H2H1H1H1H2H2H2H Weighted average term to maturity 7.7 years 6.3 years DrawnDrawnDrawn debt debtdebt hedging hedginghedging 82%82%82% 83%83%83% 100 202020202020 202120212021 202220222022 202320232023 202420242024 202520252025 202620262026 202720272027 202820282028 202920292029 203020302030 203120312031 203220322032 203320332033 203420342034 CreditCreditCreditInterest ratings ratingsratings cover (S&P (S&P(S&Pratio / /Moody’s)/ Moody’s)Moody’s) AA A/ A2/6.7x/ A2A2 AA A/ A2/5.7x/ A2A2 0 CPICPICPI Bonds Bonds Bonds1HUSUS2HUS P 1HPrivateP rivate rivate2H P1H PlacementsP lacements lacements2H 1H 2H 1HMediumMediumMedium2H 1H Term 2H Term Term1H Notes Notes2H Notes1H 2HDrawnDrawnDrawn1H 2H Bank BankBank1H Facilities2H FacilitiesFacilities1H 2H 1HUndrawnUndrawn2HUndrawn1H 2H B BankB1H ank ank 2H Facilit Facilit Facilit1H ies2H ies ies Drawn debt hedging 82% 83% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Credit ratings (S&P / Moody’s) A / A2 A / A2 CPI Bonds US P rivate P lacements MediumTheTheThe GPT GPTGPT Term Group GroupGroup Notes | 2019 || 20192019Drawn Annual AnnualAnnual Bank Result ResultResult Facilities | 10 || 1010 February FebruaryFebruaryUndrawn 2020 20202020 B ank Facilit121212 ies
The GPT Group | 2019 Annual Result | 10 February 2020 12 For personal use only use personal For Office & Logistics
Annual Result 2019 For personal use only use personal For RESULTS PRESENTATION 14 Office Highlights Office Highlights
Portfolio Size & Geographic Exposure 6.2% 10.0% 147,600sqm PORTFOLIO TOTAL PORTFOLIO LEASES LIKE FOR LIKE RETURN SIGNED Office Retail $6.3bn INCOME GROWTH (12 MONTHS) $6.1bn Sydney 59% Key Highlights Melbourne 31% Brisbane 10%
+ Portfolio occupancy of 98.3%1 up 1.2% in the 12 months + WALE extended to 5.3 years as a result of significant leasing progress Assets Under Management of $13.1 billion with 24 prime assets in deepest office markets + Logistics + Office valuation gains of $271.2 million, WACR firming to 4.85% $2.4bn + Operations Net Income up 2.8% to $275.3 million as result of underlying portfolio growth and acquisitions / divestments + Low vacancy in Sydney and Melbourne, and improving conditions in Brisbane
580 George Street, Sydney
1. Occupancy excludes Queen & Collins, Melbourne as under redevelopment
The GPT Group | 2019 Annual Result | 10 February 2020 14 For personal use only use personal For Office Valuations & Market Fundamentals Office Valuations & Market Fundamentals
+ Office valuation gains in 12 months of $271.2 million, with market rental growth contributing over 50% of increase $271.2m + Melbourne Central Tower together with Governor Phillip & Governor Macquarie Towers PORTFOLIO VALUATION UPLIFT and 2 Park Street in Sydney achieved highest uplift + Low vacancy in Sydney and Melbourne, with high levels of pre-commitment for new supply 4.85% PORTFOLIO WACR
Vacancy by Grade by Market sqm Gross Supply vs. Vacancy Rate Tot al Vacancy Rate Prime Vacancy Rate 400,000 Pre-leased Supply Vacant Supply Vacancy Rate (RHS) Vacancy Rate - 20y Avg. 14.0% GPT Portfolio 350,000 12.0% % 300,000 11.7% 100 10.0% Prime Office 11.7% 8.9% 250,000 7.8% 8. 0% 8.5% 200,000 7.2% 5.0% 6. 0% 150,000 3.4% 5.4% 4. 0% 5.0% 4.8% 100,000 3.4% 50,000 2. 0% 1.8% 0.5% - 0. 0%
Sydney Melbourne Brisbane Parramatta 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Syd CBD Melb CB D Bris CBD
Source: JLL Research, GPT Research. Source: Data includes all grades; JLL Research, GPT Research.
Vacancy rate reflecting position as at 31 December for each year. The GPT Group | 2019 Annual Result | 10 February 2020 15 For personal use only use personal For
RESULTS PRESENTATION 15 RESULTS PRESENTATION 16 Office Leasing OfficeOffice LeasingLeasing Office Leasing
147,600147,600sqmsqm 98.398.3%% CommunityCommunity && SIGNEDSIGNED LEASESLEASES PORTFOLIOPORTFOLIO sqm % AmenityAmenity WithWith anan additionaladditional147,600 29,400sqm29,400sqm ofof termsterms agreedagreed OCCUPANCYOCCUPANCY98.3¹¹ Community & SIGNED LEASES PORTFOLIO Amenity With an additional 29,400sqm of terms agreed OCCUPANCY¹ ++ StrongStrong leasingleasing outcomesoutcomes achievedachieved withwith 20202020 andand 20212021 expiryexpiry reducedreduced fromfrom 29%29% toto 17%17%inin thethe 1212 months²months² SustainabilitySustainability + Strong leasing outcomes achieved with 2020 and 2021 expiry reduced ++ WALEWALE extendedextendedfrom 29% toto 5.3 5.3to 17% yearsyearsin and andthe renewals12renewals months² securedsecured withwith keykey customers:customers: Sustainability + WALE extended to 5.3 years and renewals secured with key customers: DarlingDarling ParkPark 1,1, SydneySydney 17,200sqm17,200sqm Darling Park 1, Sydney 17,200sqm TechnologyTechnology EnablementEnablement Workplace6,Workplace6, SydneySydney 18,200sqm18,200sqm Technology Workplace6, Sydney 18,200sqm Enablement MelbourneMelbourne CentralCentral TowerTower 13,700sqm13,700sqm CustomerCustomer CentricityCentricity Melbourne Central Tower 13,700sqm 33 FlexibleFlexible 111111 EagleEagle Street,Street, BrisbaneBrisbane 7,500sqm7,500sqm ++ CustomerCustomerCustomer satisfactionsatisfaction scoreCentricityscore ofof 86%,86%, highesthighest scorescore inin peerpeer setset OnOn--demanddemand 3 Flexible 111 Eagle Street, Brisbane 7,500sqm ++ RenewalsRenewals+ Customer andand expansionsexpansions satisfaction makemake score upup >70%>70% of 86%, ofof 20192019 highest leasingleasing score in peer set SpaceSpace On-demand MelbourneMelbourne CentralCentral TowerTower 7,700sqm7,700sqm ++ TargetedTargeted+ upgradesupgradesRenewals andand and investmentinvestment expansions programprogram make up >70% of 2019 leasing Space Melbourne Central Tower 7,700sqm + Targeted upgrades and investment program 1.1. OccupancyOccupancy excludes excludes Queen Queen & & Collins, Collins, Melbourne Melbourne as as under under redevelopment redevelopment 2.2. IncludesIncludes leases leases signed signed post post balance balance date date TheThe GPT GPT Group Group | |2019 2019 Annual Annual Result Result | |10 10 February February 2020 2020 1616 3.3. SurveySurvey conduced conduced1. Occupancy by by Campbell Campbell excludes Scholtens, Scholtens, Queen number number & Collins, one one Melbourne position position on on as a a underrolling rolling redevelopmentthree three-year-year average average basis basis 2. Includes leases signed post balance date The GPT Group | 2019 Annual Result | 10 February 2020 16
3. Survey conduced by Campbell Scholtens, number one position on a rolling three-year average basis For personal use only use personal For Office Acquisitions & Divestments OfficeOffice Acquisitions Acquisitions & Divestments & Divestments
+ Significant transaction activity in 2019, investing in high quality assets providing greater control for the Group + Significant transaction activity in 2019, investing in high quality assets providing greater control for the Group + Acquired stake in Darling Park 1 & 2, Sydney, made up of two premium office assets and a harbourfront development opportunity + Acquired stake in Darling Park 1 & 2, Sydney, made up of two premium office assets and a harbourfront development opportunity + GPT Wholesale Office Fund acquired the remaining 50% share of 2 Southbank Boulevard, Melbourne for $326 million + GPT Wholesale Office Fund acquired the remaining 50% share of 2 Southbank Boulevard, Melbourne for $326 million + Divested MLC Centre for $800 million, capitalising on leasing and asset upgrades completed over past 5 years + Divested MLC Centre for $800 million, capitalising on leasing and asset upgrades completed over past 5 years
CBA renewal of CBA$ $ renewal of M M 17,200sqm 531$ M 326$ M 17,200sqmPURCHASE 531PRICE PURCHASE 326PRICE PURCHASE PRICE PURCHASE PRICE
sqm sqm 101,900 sqm 53,300 sqm OFFICE NLA101,900 OFFICE NLA53,300 OFFICE NLA OFFICE NLA
% % 98.1 % 99.2 % OCCUPANCY98.1¹ OCCUPANCY99.2¹ OCCUPANCY¹ OCCUPANCY¹
years years Darling Park 1 & 2 6.3 years 2 Southbank Boulevard 5.7 years 25% AcquisitionDarling by GPT Park 1 & 2 WALE1 6.3 50% Acquisition2 Southbank by GWOF BoulevardWALE 1 5.7 25% Acquisition by GPT WALE1 50% Acquisition by GWOF WALE1
1. As at 31 December 2019 1. As at 31 December 2019 The GPT Group | 2019 Annual Result | 10 February 2020 17
The GPT Group | 2019 Annual Result | 10 February 2020 17 For personal use only use personal For
RESULTS PRESENTATION 17 RESULTS PRESENTATION 18 Office Portfolio Composition Office Portfolio Composition Office Portfolio Composition Portfolio rebalancing towards newer, less capital + Portfolio rebalancing towards newer, less capital + intensive assets and securing development intensive assets and securing development +opportunitiesPortfolio rebalancing for value creationtowards newer, less capital % +opportunitiesPortfolio rebalancing for value creationtowards newer, less capital 6.2% intensive assets and securing development 6.2PORTFOLIO Consistent high returns delivered over past 5 years, PORTFOLIO + Consistentopportunities high forreturns value delivered creation over past 5 years, LIKE6.2 FOR LIKE% + with average annual like for like growth of 5.9% LIKE6.2 FOR LIKE with average annual like for like growth of 5.9% PORTFOLIO + Consistent high returns delivered over past 5 years, INCOME GROWTH +85% of portfolio subject to structured rental increases, INCOMELIKE FOR GROWTH LIKE + 85%with of average portfolio annual subject like to structuredfor like growth rental of increases, 5.9% LIKE FOR LIKE + averaging 3.9% INCOME GROWTH averaging 3.9% + 85% of portfolio subject to structured rental increases, averaging 3.9% Operations Net Income ($) and Like for Like Growth (%) Operations Net Income ($) and Like for Like Growth (%) Operations Net Income ($) and Like for Like Growth (%) $300 10% $300 $267.7 $275.3 10% $247.8 $267.7 $275.3 $250$300 $223.9 $247.8 10% $250$300 $209.5 $223.9 $267.7 $275.3 8%10% $209.5 $247.8 $267.7 $275.3 8% $200 $247.8 $250 $223.9 $200 $209.5 $223.9 6%8% $209.5 6% $150$200 6.3% 6.3% 6.2% $150$200 6.3% 6.3% 5.8% 6.2% 5.0% 5.8% 4%6% $100$150 6.3% 6.3% 5.0% 6.2% 4% Millions ($m) Millions $100$150 5.8% 6.2% Millions ($m) Millions 5.0% 2%4% $50$100 5.0% 2%
Millions ($m) Millions $50$100 Millions ($m) Millions 2% $0$50 0%2% Like for Like Income Growth (%)
$0$50 0% Like for Like Income Growth (%) 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
$0 0% Like for Like Income Growth (%) $0 0% Like for Like Income Growth (%) 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 The GPT Group | 2019 Annual Result | 10 February 2020 18 The GPT Group | 2019 Annual Result | 10 February 2020 18
The GPT Group | 2019 Annual Result | 10 February 2020
The GPT Group | 2019 Annual Result | 10 February 2020 18 For personal use only use personal For Office Development Pipeline Office Development Pipeline
PHOTO FROM GROUND REQUESTED
Construction Progress at 31 January 2020 Artists impression Artists impression
32 Smith Street, Parramatta
+ Construction progressing well, due for practical completion in late 2020 + Asset 64% leased¹ with QBE anchoring the development + Parramatta prime vacancy of 0.5% with new space under + 32 Smith is designed to reduce energy and water consumption, with a 5 Star NABERS construction substantially pre-committed Energy rating and 6 Star Green Star rating targeted + Positive net absorption of 46,900sqm in 2019 with tenant + Smart building attributes focused on customer experience and driving operational relocations into the Parramatta market performance + Significant infrastructure investment, including Sydney + Expected yield on cost of ~6.75% and an end value in excess of $320 million Metro West, that will double rail capacity between Sydney CBD and Parramatta, cutting travel time to ~20 minutes
1. Including Heads of Agreement agreed post balance date
The GPT Group | 2019 Annual Result | 10 February 2020 19 For personal use only use personal For
RESULTS PRESENTATION 19 RESULTS PRESENTATION 20 Office Development Pipeline Office Development Pipeline
Artists impression of indicative building scale Artists impression Cockle Bay Park, Sydney Frame, 300 Lonsdale Street, Melbourne
+ International Design Competition for Cockle Bay Park is + Further enhance Melbourne Central as a dominant mixed use precinct, incorporating nearing completion an office building, connected to elevated garden spaces and a new rooftop retail, entertainment and dining precinct + Project will deliver approximately 63,000sqm of office space together with a 10,000sqm retail and entertainment precinct + Designed by the award-winning architecture and urban design practice ARM Architecture, featuring a hotel-inspired sky lobby and floor plates of approximately + Targeting commencement in 2022 2,000sqm + Expected end value of ~$2 billion with a development IRR + The building is targeted to deliver a minimum 5 Star NABERS Energy and Water rating, >12% a 6 Star Green Star rating, and WELL Gold Standard + Expected yield on cost for office component >6.50% and end value in excess of $220 million
The GPT Group | 2019 Annual Result | 10 February 2020 20 For personal use only use personal For Logistics Highlights Logistics Highlights
Portfolio Size & Geographic Exposure 15.4% 12.1% 231,600sqm OPERATIONS TOTAL PORTFOLIO LEASES SIGNED Office $6.1bn Retail NET INCOME RETURN $6.3bn GROWTH (12 MONTHS)
Sydney 68% Melbourne 24% Key Highlights Brisbane 8%
+ Portfolio occupancy of 95.7%¹ with long WALE of 7.3 years + Like for Like income growth for 12 months of 3.3% + Logistics valuation gains in 12 months of $117.1 million, WACR firming to 5.40% Logistics + Land acquired in Sydney and Melbourne, projects underway and pipeline has capacity to $2.4bn deliver over 550,000sqm of prime logistics facilities with an expected end value in excess of $1 billion + Sector continues to benefit from sustained tenant and investor demand, with limited vacancy in prime markets
21 Shiny Drive, Truganina 1. Includes leases signed post balance date
The GPT Group | 2019 Annual Result | 10 February 2020 21 For personal use only use personal For
RESULTS PRESENTATION 21 RESULTS PRESENTATION 22 Logistics Leasing Logistics Leasing
Demonstration of active leasing strategies to drive value and lease future expiries, + Demonstration of active leasing strategies to drive value and lease future expiries, + with strong focus on customer relationships with strong focus on customer relationships sqm % New Truganina facility completed and fully leased1 231,600sqm 95.7% + New Truganina facility completed and fully leased1 231,600SIGNED LEASES 95.7PORTFOLIO + SIGNED LEASES PORTFOLIO + 2020 and 2021 expiry reduced from 21% to 8% in the 12 months With an additional 27,500sqm of terms agreed OCCUPANCY¹ + 2020 and 2021 expiry reduced from 21% to 8% in the 12 months Retention rate for 2019 expiries of 74% + Retention rate for 2019 expiries of 74%
Development New 24% New 24% Leasing 26% Yennora, NSW Camellia, NSW Yatala, QLD Total Leasing Volume Yennora, NSW Camellia, NSW Yatala, QLD Total Leasing Volume 33,200sqm 29,500sqm 22,500sqm 33,200sqm 29,500sqm 22,500sqm 259,100sqm across 23 deals
Wetherill Park, NSW Altona North, VIC Eastern Creek, NSW Wetherill Park, NSW Altona North, VIC Eastern Creek, NSW 20,500sqm 18,800sqm 15,200sqm 20,500sqm 18,800sqm 15,200sqm
Renewal 50%
1. Includes leases signed post balance date 1. Includes leases signed post balance date The GPT Group | 2019 Annual Result | 10 February 2020 22
The GPT Group | 2019 Annual Result | 10 February 2020 22 For personal use only use personal For Logistics Portfolio Growth Logistics Portfolio Growth
+ Portfolio growth of $545 million during the year to $2.4 billion + Acquired five prime logistics facilities totalling $212 million in Sydney + Secured a 23,000sqm facility in Truganina, Melbourne for $42 million settling in 2020, pre-leased to an international logistics company for a 10 year term + Two developments completed in Eastern Creek, Sydney and Truganina, Melbourne, with a further four facilities underway and due for completion in 2020 2019 Developments 2 facilities totaling $105m Composition of Portfolio Growth $117m $2.4b $110m $212m $1.9b $106m
2019 Acquisitions 5 facilities totaling $212m 2020 Acquisitions 1 facility totaling $42m 29% Growth in 2019
Dec-18 Land Investment Development & Valuation uplift Dec-19 acquisitions operational capex 2020 Underway Developments 4 facilities totaling $167m
The GPT Group | 2019 Annual Result | 10 February 2020 23 For personal use only use personal For
RESULTS PRESENTATION 23 RESULTS PRESENTATION 24 Logistics Market Context Logistics Market Context
Other 14% + Australia population is projected to grow ~20% by 2030 Population is expected to be increasingly urbanised, with Wholesale Transport, Postal & + Trade Warehousing Population ~70% in capital cities Growth 8% Eastern 37% Seaboard Industrial Take-Up Manufacturing by Industry Over $130 billion being invested in transport infrastructure + 17% (2019) investment by State and Federal Governments Infrastructure Investment + Investment is concentrated in NSW & Victoria Retail Trade 24% + Trade through Australian ports is expected to increase by Trade ~5% per annum over the long term Expansion + Anticipated to drive demand near ports, intermodal + Eastern Seaboard take-up dominated by Transport, terminals and key road networks Postal and Warehousing and Retail Trade, collectively making up 61% of 2019 demand + Melbourne’s West has been the most active market, + Online sales reflect approximately 9% of total retail sales making up 24% of national take-up E-commerce & + With convenience, speed, and variety of offering driving + Investment demand for Logistics remains strong, with Supply Chain increased need for inventory management local and global capital seeking exposure to the sector Sophistication
Source: JLL Research, GPT Research.
The GPT Group | 2019 Annual Result | 10 February 2020 24 For personal use only use personal For Logistics Development Pipeline LogisticsLogistics DevelopmentDevelopment PipelinePipeline
++ LandLand parcels parcels secured secured in in key key growth growth corridors: corridors: ++ TruganinaTruganina (Boundary (Boundary Road), Road), Melbourne: Melbourne: 32.8 32.8 hectare hectare site site secured secured on on deferred deferred settlement settlement terms terms >550,000>550,000sqmsqm ++ TruganinaTruganina (Niton (Niton Drive), Drive), Melbourne: Melbourne: 14.9 14.9 hectare hectare site site forming forming part part of of The The Gateway Gateway Logistics Logistics Hub Hub PIPELINEPIPELINE CAPACITY CAPACITY ++ KempsKemps Creek, Creek, Sydney: Sydney: 33.4 33.4 hectare hectare site site secured secured on on deferred deferred settlement settlement terms terms ++ Penrith,Penrith, Sydney: Sydney: 10.2 10.2 hectare hectare site site acquired acquired with with a a fund fund--throughthrough development development underway underway ++ Glendenning,Glendenning, Sydney: Sydney: 3.13.1 hectare hectare site site acquired, acquired, speculative speculative facility facility to to commence commence in in 1H 1H 2020 2020 >$1>$1 billionbillion ++ TargetingTargeting yield yield on on cost cost in in excess excess of of 6% 6% PIPELINEPIPELINE EXPECTED EXPECTED END END VALUE VALUE ++ AnticipateAnticipate commencement commencement of of projects projects across across three three states states in in 2020 2020
LandLand ExpectedExpected GLA GLA CompletedCompleted UnderwayUnderway EstimatedEstimated EstimatedEstimated Timing Timing StateState (Hectares)(Hectares) (sqm)(sqm) (sqm)(sqm) (sqm)(sqm) EndEnd Value Value 20202020 20212021 20222022 20232023 20242024 2025+2025+ TruganinaTruganina (Gateway) (Gateway) VICVIC 23.023.0 142,000142,000 26,50026,500 -- $200m$200m TruganinaTruganina (Boundary (Boundary Road) Road) VICVIC 32.832.8 128,200128,200 -- -- $205m$205m KempsKemps Creek Creek NSWNSW 33.433.4 162,300162,300 -- -- $445m$445m PenrithPenrith (fund (fund-through)-through) NSWNSW 10.210.2 50,10050,100 -- 50,10050,100 $80m$80m GlendenningGlendenning NSWNSW 3.13.1 17,10017,100 -- -- $45m$45m YennoraYennora NSWNSW 1.11.1 4,8004,800 -- 4,8004,800 $12m$12m BerrinbaBerrinba QLDQLD 16.116.1 74,30074,300 -- 34,90034,900 $150m$150m ActiveActive Development Development Pipeline Pipeline 119.7119.7 578,800578,800 26,50026,500 89,80089,800 ~$1,137m~$1,137m 100%100% LeasedLeased¹ ¹ 1.1. IncludingIncluding Heads Heads of of Agreement Agreement post post balance balance date date
TheThe GPT GPT Group Group | |2019 2019 Annual Annual Result Result | |10 10 February February 2020 2020 2525 For personal use only use personal For
RESULTS PRESENTATION 25 Retail
Annual Result 2019 For personal use only use personal For Retail Highlights Retail Highlights
Portfolio Size & Geographic Exposure 1.2% 99.6% $11,667 PORTFOLIO PORTFOLIO SPECIALTY SALES Office LIKE FOR LIKE OCCUPANCY PRODUCTIVITY $6.1bn Retail INCOME GROWTH PER SQUARE METRE NSW 41% $6.3bn VIC 44% Key Highlights QLD 10% NT 5%
+ Retail segment FFO contribution of $326.0 million for 12 months to Dec 2019, which is in line with 2018 + Valuation decline of $46 million (<1% of portfolio value) for 12 months to Dec 2019, and a Logistics WACR1 of 4.89% $2.4bn + Successful launch of new dining precincts at Melbourne Central and Charlestown Square + Completion of Sunshine Plaza development on 28 March 2019 + Strong progress with development proposals for Melbourne Central and Rouse Hill, scheduled to commence mid 2020.
Melbourne Central, Melbourne
1. Weighted Average Capitalisation Rate
The GPT Group | 2019 Annual Result | 10 February 2020 27 For personal use only use personal For
RESULTS PRESENTATION 27 RESULTS PRESENTATION 28 Retail Sales Retail Sales
SPECIALTY SALES PRODUCTIVITY (<400sqm) Specialty Sales Productivity by Category 11.1% MAT $psm growth
$ 7.6% 11,667per sqm (psm) 5.8% 3.3% 2.1% 1.9% 2.3% 1.1% 0.5% TOTAL SPECIALITY SALES PRODUCTIVITY -0.7% -1.1% GROWTH (PSM) -2.0% -2.4%
-6.5% -7.0% % 1.9 DDS Dining Leisure Cinemas Food Retail Homewares Tot al Centre
AVERAGE TOTAL SPECIALTY TENANT SALES Supermarkets General Retail General Retail Services Healt h & Beauty Tot al Specialties Tech & Appliances & Tech Department St ores >$1.6 million pa
per store Fashion, Footwear & Accessories
Statistics exclude development impacted centres (Sunshine Plaza, Macarthur Square, Wollongong)
The GPT Group | 2019 Annual Result | 10 February 2020 28 For personal use only use personal For Retail Leasing
Retail Leasing New Dining + 459 leasing deals completed introducing over 70 precincts new retailers to the portfolio in 2019 delivered + Strong retail demand reflected in high portfolio occupancy + Holdovers down from the half, and in-line with 2018 at 5.7% of specialty rent + New specialty leases achieving fixed increases of 4.8%
Portfolio Leasing Statistics The Corner – Charlestown Square ELLA – Melbourne Central DEC 2019 Portfolio Occupancy 99.6% + Precinct opened fully leased (Dec 19) + Precinct opened fully leased (Oct 19) Retention Rate 75% + Introduction of 10 new retailers + Introduction of 13 unique and iconic Avg. Annual Fixed Increase1,2 4.8% including well-known local dining Melbourne food retailers retailers Avg. Lease Term1,2 4.7 years + Strong synergies with office tower and Tenancy mix reflecting the uniqueness access to train station Leasing Spread1,2 (2.2%) + of the Hunter Region Solid trading performance since 0.5% + % Debt of Annual Billings + Trading performance exceeding opening Specialty Occupancy Cost2 17.0% expectations
1. New leases 2. Specialties <400sqm
Statistics exclude development impacted centres (Sunshine Plaza, Macarthur Square, Wollongong) & holdovers The GPT Group | 2019 Annual Result | 10 February 2020 29 For personal use only use personal For
RESULTS PRESENTATION 29 RESULTS PRESENTATION 30 Retail Portfolio Retail Shift – Total Specialties (5 Year CAGR 2014-2019) Retail Portfolio Retail Offer that is responding to GLA Sales PSM Total Rent SQM Growth Growth customer demand Why Data? DiningRetail Shift – Total Specialties (5 Year3.0% CAGR 2014-5.3%2019) DataRetail driven culture Portfolio – using digital technology and Retail Offer that is responding to Health & Beauty GLA Sales5.3% PSM Total7.6% Rent data to create value, drive market share…. SQM Growth Growth customer demand Leisure 2.1% 5.2% Dining 3.0% 5.3% Why Data? Apparel 1.1% (0.7%) Data driven culture – using digital technology and Health & Beauty 5.3% 7.6% odataVisitation to create & GPS value, drive market share….o Centre WiFi o Customer o Social Platforms Responding to Leisure 2.1% 5.2% Database o Mobile o Quantium Data o Website Use customer feedback Apparel 1.1% (0.7%) o Sales Reports Data o Visitation & GPS o Centre WiFi and creating reasons Customer Sources Social Platforms o o Respondingfor visitation to Database o Mobile o Quantium Data o Website Use customer feedback o Sales Reports Data and creating reasons Sources for visitation Melbourne Central - Customer Solution for Online Returns Parkmore Outdoor Cinema
Investment in Melbourne Central - Customer Data Customer physical spaces Solution for Online Returns Parkmore Outdoor Cinema Analysis Insights Investment in Data Customer physical spaces Leasing Prediction Tool Net Promoter Score o Analysis Insightso o Tableau Dashboards o Voice of Customer o Machine Learning (AI) o Customer Data Platform On3 – Melbourne Central Main St Dining Precinct – Rouse Hill “Creating a Single View
o Leasing Prediction Tool o Net Promoter Score Tableau Dashboards Voice of Customer o o The GPT Group | 2019 Annual Result | 10 February 2020 30 o Machine Learning (AI) o Customer Data Platform On3 – Melbourne Central Main St Dining Precinct – Rouse Hill “Creating a Single View
The GPT Group | 2019 Annual Result | 10 February 2020 30 For personal use only use personal For Retail Melbourne Central Development #1 MOST PRODUCTIVE SHOPPING CENTRE IN AUSTRALIA1
5.7% pa MARKET GROWTH FORECAST (2020-2029)2
Artists impression Artists impression
+ Approx. $70 million - 7,000sqm of retail, focused on entertainment, dining and leisure + Approval received for Development Application + Retail pre-leasing well progressed, currently at 40% + Forecast Return | ~ 6.5% stabilised yield + Target Commencement | mid 2020
Artists impression
1. Shopping Centre Big Guns Publication 2019 2. GPT Research – using Deloitte Access Economic Forecasts For personal use only use personal For The GPT Group | 2019 Annual Result | 10 February 2020 31
RESULTS PRESENTATION 31 RESULTS PRESENTATION 32
Retail Rouse Hill Development
7.6% pa SALES PRODUCTIVITY GROWTH (2017-2019)
6.1% pa MARKET GROWTH FORECAST (2020-2029)1
Artists impression Artists impression
+ Approx. $200 million - 20,000sqm of retail and commercial space + Residential integrated within retail scheme and adjacent to existing asset + Development Application lodged + Forecast Return | > 6% stabilised yield + Target Commencement | mid 2020
Artists impression
1. GPT Research – using Deloitte Access Economic Forecasts
The GPT Group | 2019 Annual Result | 10 February 2020 32 For personal use only use personal For Funds Management
Annual Result 2019 For personal use only use personal For RESULTS PRESENTATION 34 Funds Management Highlights Funds Management Highlights
Funds Management Financial Summary ($M) $13.3B 5.6% 8.7% ASSETS UNDER AUM GROWTH FFO Segment 2019 2018 CHANGE MANAGEMENT GROWTH Result 46.3 42.6 8.7%
Key Highlights
+ GWSCF continued its asset recycling strategy with the sale of Norton 2010 2019 Plaza for $153 million GWOF acquired a 50% interest in 2 Southbank Boulevard, Melbourne for + $ % $ $326 million AUM 5.3b 11 13.3b + GWOF raised $260 million of new equity from a mix of existing and new 9 year CAGR investors in 2019 GWOF completed a 6.5 year $200 million MTN issue at a cost of 2.5% + Earnings $11.2m 17% $46.3m
9 year CAGR
The GPT Group | 2019 Annual Result | 10 February 2020 34 For personal use only use personal For GWOF – $2 Billion Development Pipeline GWOF - $2 Billion Development Pipeline
Artists impression Artists impression Artists impression Corner of George & Bathurst, Sydney Queen & Collins, Melbourne 51 Flinders Lane, Melbourne
GWOF Indicative Timing GWOF Asset Ownership Spend share 2019 2020 2021 2022 2023 2024 2025
Queen & Collins, Melbourne 100% $238m $238m
Cockle Bay Park, Sydney 50% $800m $40m $760m
51 Flinders Lane, Melbourne 100% $400m $400m (at 32 Flinders Street)
Skygarden, Brisbane 100% $400m $400m (at Riverside Centre)
Cnr of George & Bathurst, Artists impression Sydney 100% $150m $150m Artists impression Cockle Bay Park, Sydney (at 580 George Street) Skygarden, Brisbane
Development approved Under consideration
The GPT Group | 2019 Annual Result | 10 February 2020 35 For personal use only use personal For
RESULTS PRESENTATION 35 RESULTS PRESENTATION 36 Summary & Outlook Summary & Outlook
Market Outlook Group Outlook
+ Recovery in residential sector, low interest rates and + 2020 income growth underpinned by structured rental on-going infrastructure spend expected to support growth across the portfolio, high occupancy and lower economic growth interest rates + GPT’s core markets of Sydney & Melbourne will + Development pipeline providing enhanced growth continue to benefit from strong population growth, outlook densification and low unemployment + Capital allocation will continue strategic re-weight + Strong investor demand for real estate toward office and logistics
2020 Guidance FFO per security growth of 3.5% DPS growth of 3.5%
The GPT Group | 2019 Annual Result | 10 February 2020 36 For personal use only use personal For 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 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 in this presentation 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. 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 this presentation - 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, officers, 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 31 December 2019 unless otherwise indicated. All values are expressed in Australian currency unless otherwise indicated. Funds from Operations (FFO) is reported in the Segment Note disclosures which are included in the financial report of The GPT Group for the 12 months ended 31 December 2019. FFO is a financial measure that represents The GPT Group’s underlying and recurring earnings from its operations. This is determined by adjusting statutory net profit after tax under Australian Accounting Standards for certain items which are non-cash, unrealised or capital in nature. FFO has been determined based on guidelines established by the Property Council of Australia. A reconciliation of FFO to Statutory Profit is included in this presentation. Key statistics for the Retail and Office divisions include GPT Group’s weighted interest in the GPT Wholesale Shopping Centre Fund (GWSCF) and the GPT Wholesale Office Fund (GWOF) respectively.
The GPT Group | 2019 Annual Result | 10 February 2020 37 For personal use only use personal For
RESULTS PRESENTATION 37 2019 Annual Result
Data Pack For personal use only use personal For Contents
38 GPT Overview
42 Financial Performance
52 Retail Portfolio
62 Office Portfolio
80 Logistics Portfolio
98 Development
102 Funds Management
Note: All information included in this pack includes GPT owned assets and GPT’s
interest in the Wholesale Funds (GWOF and GWSCF) unless otherwise stated. For personal use only use personal For GPT Overview
Annual Result 2019 For personal use only use personal For 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 31 December 2019 • 12 shopping centres • 24 assets • 35 assets • 960,000 sqm GLA • 1,080,000 sqm NLA • 1,010,000 sqm GLA • 3,200 + tenants • 470 + tenants • 80 + tenants • $6.3b portfolio • $6.1b portfolio • $2.4b portfolio • $9.8b AUM • $13.1b AUM • $2.4b AUM Retail 43% Oce 41%
Logistics 16% For personal use only use personal For
Highpoint Shopping Centre, Victoria 580 George Street, Sydney TNT Erskine Park, Sydney
GPT OVERVIEW 38 GPT OVERVIEW 39 GPT Portfolio Metrics
Across the three sectors, GPT has maintained high occupancy and a long WALE.
Portfolio Size ($b) Comparable Income Growth1 (%) WALE (years) Occupancy (%) WACR (%) Retail 6.33 1.2 3.9 99.6 4.89
Office 6.08 6.2 5.3 98.3 4.85
Logistics 2.44 3.3 7.3 94.4 5.40
Total 14.85 3.5 5.0 96.5 4.95
Structured Rental Increases2
Retail ffice Logistics Specialties Fixed 85% Fixed 93% Fixed 75% Other 15% Other 7% 4.7% Other 25% 3.9% 3.1% Average fixed Average fixed Average fixed Increase Increase Increase
For personal use only use personal For 1. Income for the 12 months to 31 December 2019 compared to the previous corresponding period. 2. Structured rent reviews for the 12 months to 31 December 2020. Other includes market reviews and expiries in 2020. Glossary
A-Grade As per the Property Council of Australia’s ‘A Guide to Office Building Quality’ GLA Gross Lettable Area AFFO Adjusted Funds From Operations: Adjusted Funds From Operations is GWOF GPT Wholesale Office Fund defined as FFO less maintenance capex, leasing incentives and one-off items calculated in accordance with the PCA ‘Voluntary Best Practice GWSCF GPT Wholesale Shopping Centre Fund Guidelines for Disclosing FFO and AFFO’ HoA Heads of Agreement AREIT Australian Real Estate Investment Trust IFRS International Financial Reporting Standards ASX Australian Securities Exchange IPD Investment Property Databank AUM Assets under management IRR Internal Rate of Return Bps Basis Points LBP Logistics & Business Parks Capex Capital expenditure Major Tenants Retail tenancies including Supermarkets, Discount Department Stores, CBD Central Business District Department Stores and Cinemas CO2 Carbon Dioxide MAT Moving Annual Turnover CPI Consumer Price Index MER Management Expense Ratio: Management Expense Ratio is defined as management expenses divided by assets under management cps Cents per security Mini-Major Tenants Retail tenancies with a GLA above 400 sqm not classified as a DPS Distribution per security Major Tenant EBIT Earning Before Interest and Tax MTN Medium Term Notes EPS Earnings per security: Earnings per security is defined as Funds From N/A Not Applicable Operations per security NABERS National Australian Built Environment Rating System FFO Funds From Operations: Funds From Operations is defined as the underlying earnings calculated in accordance with the PCA ‘Voluntary Best NAV Net Asset Value Practice Guidelines for Disclosing FFO and AFFO’ Net Gearing Net gearing is defined as debt less cash less cross currency derivative
For personal use only use personal For FUM Funds under management assets add cross currency derivative liabilities divided by total tangible assets less cash less cross currency derivative assets less right of use Gearing The level of borrowings relative to assets assets less lease liabilities – investment properties GFA Gross Floor Area NLA Net Lettable Area
GPT OVERVIEW 40 GPT OVERVIEW 41
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: TR Total Return: Total Return at GPT Group level is calculated as the change The ASX defines ordinary securities as those securities that carry no in Net Tangible Assets (NTA) per security plus distributions per security special or preferred rights. Holders of ordinary securities will usually have declared over the year, divided by the NTA per security at the beginning of the right to vote at a general meeting of the company, and to participate in the year any dividends or any distribution of assets on winding up of the company on the same basis as other ordinary securityholders TSR Total Securityholder Return: Total Securityholder Return is defined as distribution per security plus change in security price PCA Property Council of Australia Total Tangible Assets Total tangible assets is defined as per the Constitution of the Trust and Premium Grade As per the Property Council of Australia’s ‘A Guide to Office Building Quality’ equals Total Assets less Intangible Assets reported in the Statement of Prime Grade Includes assets of Premium and A-Grade quality Financial Position psm Per square metre USPP United States Private Placement PV Present Value VWAP Volume weighted average price Retail Sales Based on a weighted GPT interest in the assets and GWSCF portfolio. GPT WACD Weighted average cost of debt reports retail sales in accordance with the Shopping Centre Council of Australia (SCCA) guidelines WACR Weighted average capitalisation rate
ROCE Return on capital employed WALE Weighted average lease expiry For personal use only use personal For Financial Performance
Annual Result 2019 For personal use only use personal For Financial Summary
12 months to 31 December 2019 2018 Change Funds From Operations ($m) 613.7 574.6 6.8% Net profit after tax ($m) 880.0 1,451.7 39.4% FFO per ordinary security (cents) 32.68 31.84 2.6% FFO yield (based on period end price) 5.8% 6.0% Distribution per ordinary security (cents) 26.48 25.46 4.0% Distribution yield (based on period end price) 4.7% 4.8% Net interest expense ($m) (108.0) (124.4) 13.2% Interest capitalised ($m) 9.5 13.7 4.2m Weighted average cost of debt 3.6% 4.2% 60 bps Interest cover 6.7 times 5.7 times The weighted average number of ordinary stapled securities was 1,878.1 million for 2019 and 1,804.4 million for 2018. The period end price was $5.60 at 31 Dec 2019 and $5.34 at 31 Dec 2018. As at 31 Dec 19 As at 31 Dec 18 Change Total assets ($m) 15,867.8 14,778.0 7.4% Total borrowings ($m) 3,897.5 4,114.9 5.3% NTA per security ($) 5.80 5.58 3.9% Net gearing 22.1% 26.3% 420 bps Net look through gearing 24.8% 29.0% 420 bps
Weighted average term to maturity of debt 7.7 years 6.3 years 1.4 years For personal use only use personal For Credit ratings (S&P/Moody's) A stable/A2 stable A stable/A2 stable Unchanged Weighted average term of interest rate hedging 4.0 years 4.4 years 0.4 years
FINANCIAL PERFORMANCE 42 FINANCIAL PERFORMANCE 43 Results Summary
Segment performance 12 months to 31 December ($m) 2019 2018 Retail Operations net income 321.6 318.6 Development net income 4.4 7.6 326.0 326.2 Office Operations net income 275.3 267.7 Development net income 1.0 1.0 276.3 268.7 Logistics Operations net income 120.9 104.8 Development net income 0.1 5.1 121.0 109.9 Funds Management 46.3 42.6 Net financing costs (108.0) (124.4) Corporate management expenses (35.3) (34.2) Tax expenses (12.6) (14.2) Funds From Operations (FFO) 613.7 574.6 Valuation increase 342.2 910.7 Financial instruments mark to market movements and net foreign exchange movements (82.7) (39.6) Other items 6.8 6.0
Net Profit After Tax (NPAT) 880.0 1,451.7 For personal use only use personal For Funds From Operations to Adjusted Funds From Operations
12 months to 31 December ($m) 2019 2018 Core business 769.6 747.4 Financing and corporate overheads (155.9) (172.8) Funds From Operations 613.7 574.6 Maintenance capital expenditure (55.2) (53.2) Lease incentives (including rent free and leasing costs) (61.0) (60.9)
Adjusted Funds From Operations 497.5 460.5 For personal use only use personal For
Highpoint Shopping Centre, VIC
FINANCIAL PERFORMANCE 44 FINANCIAL PERFORMANCE 45 NTA Movement
Securities on Issue Number of Securities (million) Opening balance 1 January 2019 1,804.9 Issue of securities 143.0 31 December 2019 balance 1,947.9
Net Assets No. of Securities NTA per Security NTA Movement ($m) (million) ($) NTA position as at 31 December 2018 10,073.8 1,804.9 5.58
FFO 613.7 0.34 Revaluations 342.2 0.19 Mark to market of Treasury (72.7) (0.04) Distribution (514.3) (0.30) Issue of securities 853.6 143.0 0.03 Other (5.0) – Movement in NTA 1,217.5 0.22
NTA position as at 31 December 2019 11,291.3 1,947.9 5.80 For personal use only use personal For Capital Management Summary
Gearing ($m) As at 31 December 2019 Interest Cover ($m) 31 December 2019
Total assets 15,867.8 Funds From Operations 613.7
Less: Intangible assets (35.3) Add: taxes deducted 12.6
Less: Right of use asset (51.6) Add: Finance Costs for the period1 109.5
Less: Lease Liabilities – investment properties (6.4) Earnings Before Interest and Tax (EBIT) 735.8
Less: Cross currency swap assets (425.3) Finance Costs1 109.5
Adjusted total tangible assets 15,349.2 Interest Cover 6.7 times
Current borrowings 478.1 1. Excludes Finance costs – leases.
Non-current borrowings 3,419.4
Less: Net cross currency derivative positions (425.3)
Total borrowings1 3,472.2 Net Gearing2 22.1%
1. Includes unamortised establishment costs and other adjustments. As at 31 December 2019, drawn debt is $3,450 million. 2. Calculated net of cash, cross currency derivative positions, lease liabilities in relation to investment
properties and excludes right of use asset. For personal use only use personal For
FINANCIAL PERFORMANCE 46 FINANCIAL PERFORMANCE 47 Look Through Gearing
Look Through Gearing as at 31 December 2019 GPT Group GWOF GWSCF Other2 Total
Share of assets of non-consolidated entities Group adjusted total tangible assets 15,349.2 15,349.2
Plus: GPT share of assets of non-consolidated entities 1,989.7 1,289.5 2,024.7 5,303.9
Less: total equity investment in non-consolidated entities (1,610.6) (949.8) (1,982.6) (4,543.0)
Total look through assets 15,349.2 379.1 339.7 42.1 16,110.1
Group total borrowings 3,472.2 3,472.2
Plus: GPT share of external debt of non-consolidated entities 333.5 308.9 0.0 642.4
Total look through borrowings 3,472.2 333.5 308.9 0.0 4,114.6
Total Look through cash 104.2 8.7 5.4 36.3 154.6
Look through gearing based on net debt1 24.8%
1. Calculated net of cash, cross currency derivative positions, lease liabilities in relation to investment properties and excludes right of use asset.
2. Retail, office and other assets (held in joint ventures). For personal use only use personal For Debt Maturity Profile
Existing liquidity is sufficient to cover all near term maturities with undrawn committed facilities and cash of $1399 million. Debt Maturity Profile 700 As at 31 December 2019
600
500
400 A$ millions
300
200
100
0 1H 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 1H 2H 1H 2H
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 For personal use only use personal For
CPI Bonds US Private Placements Medium term notes Drawn bank facilities Undrawn bank facilities
*Assumes commercial paper is refinanced with committed bank facilities and September 2020 MTN shown based on the early call date in March 2020.
FINANCIAL PERFORMANCE 48 FINANCIAL PERFORMANCE 49 Proforma Liquidity Profile
Liquidity Profile As at 31 December 2019 1.5 1.4 1.3 1.2 1.1 1.0 0.9 0.8
($bn) 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 Cash balance Undrawn Current Development/Capex Acquisitions Retained Debt maturities Liquidity at
31 December 2019 facilities liquidity earnings 31 December 2020 For personal use only use personal For Hedging Profile
62% hedged over the next 4 years at an average rate of 1.8%.
100 90 80 70 60 50 40
Per cent of drawn debt drawn of Per cent 30 20 10 0 Jun 21 Jun 22 Jun 23 Jun 24 Jun 20 Dec 21 Dec 22 Dec 23 Dec 19 Dec 20 Dec 24
Fixed rate debt Interest rate swaps Floating rate debt For personal use only use personal For
50 Old Wallgrove Road, Eastern Creek
FINANCIAL PERFORMANCE 50
FINANCIAL PERFORMANCE 51 For personal use only use personal For
Riverside Centre, Brisbane Retail Portfolio
Annual Result 2019 For personal use only use personal For Retail Portfolio Overview
GPT is a leading owner, manager and developer of Australian retail property. GPT’s retail investments of $6.3 billion include a portfolio of assets held on the Group’s balance sheet and an investment in the GPT Wholesale Shopping Centre Fund (GWSCF).
Darwin New South Wales Northern Territory 1 GPT Owned GPT Owned • Charlestown Square • Casuarina Square (50%) • Rouse Hill Town Centre GWSCF Owned 1 • Westfield Penrith (50%) • Casuarina Square (50%) NT GWSCF Owned QLD • Macarthur Square (50%)1 Queensland Brisbane • Wollongong Central GPT Owned 1 WA 1 • Sunshine Plaza (50%) SA Victoria GPT Owned NSW Sydney • Melbourne Central 5 • Highpoint Shopping Centre (16.7%) VIC GWSCF Owned 5 Melbourne Number of assets in each state • Chirnside Park • Highpoint Shopping Centre (83.3%) TAS • Northland Shopping Centre (50%)1
• Parkmore Shopping Centre For personal use only use personal For
1. Not managed by GPT. Note: GLA and number of tenancies is updated on an annual basis, as at 31 December 2019. All totals and averages are based on GPT’s balance sheet portfolio and weighted ownership interest in the GWSCF portfolio.
RETAIL PORTFOLIO 52 RETAIL PORTFOLIO 53 Retail Portfolio Summary
Top Ten Tenants1 Geographic Weighting As at 31 December 2019 As at 31 December 2019
Cotton On NSW 41% Woolworths Myer Wesfarmers Clothing Just Group VIC 44%
4.0% 2.7% 2.5% 2.5% 2.4%
QLD 10% NT 5%
1.9% 1.6% 1.6% 1.6% 1.6%
Coles Group Hoyts Country Road Accent Footwear Retail Apparel Group Ltd Group
1. Based on gross rent (including turnover rent). For personal use only use personal For Retail Portfolio Summary
GLA 31 Dec 19 31 Dec 19 External or Centre Specialty Specialty Ownership (100% Interest) Fair Value Cap Rate Internal Occupancy MAT Occupancy MAT1 State (%) (sqm) ($m) (%) Valuation (%) ($m) Cost1(%) ($psm) GPT Portfolio Casuarina Square NT 50 54,900 248.0 6.00 Independent 98.6 357.5 18.0 9,844 Charlestown Square NSW 100 94,900 1,003.0 5.25 Internal 99.5 562.2 15.5 11,917 Highpoint Shopping Centre VIC 17 150,900 412.5 4.25 Independent 99.2 1,032.1 19.0 11,511 Melbourne Central VIC 100 56,300 1,618.0 4.50 Independent 100.0 587.5 18.5 13,837 Rouse Hill Town Centre NSW 100 69,700 680.2 5.50 Independent 99.9 477.4 13.6 10,138 Sunshine Plaza QLD 50 107,700 683.5 4.75 Independent N/A 588.8 18.5 10,018 Westfield Penrith NSW 50 91,400 736.0 4.75 Internal 99.8 691.0 18.8 12,132 GWSCF Portfolio Casuarina Square NT 50 54,900 248.0 6.00 Independent 98.6 357.5 18.0 9,844 Chirnside Park VIC 100 39,000 320.6 5.50 Internal 99.6 304.6 15.3 12,187 Highpoint Shopping Centre VIC 83 150,900 2,062.5 4.25 Independent 99.2 1,032.1 19.0 11,511 Macarthur Square NSW 50 107,200 601.3 4.75 Internal N/A 593.8 17.2 8,885 Northland Shopping Centre VIC 50 97,000 494.2 5.25 Internal 99.4 549.2 17.5 9,166 Parkmore Shopping Centre VIC 100 36,800 276.9 6.00 Internal 100.0 280.4 14.6 10,044 Wollongong Central NSW 100 55,000 458.9 5.75 Independent N/A 345.5 15.6 8,947 GPT Weighted Total 960,800 4.89 99.62 2,864.22 17.02 11,6672 1. Represents Specialty Tenancies less than 400 sqm.
2. Excludes development impacted centres (Sunshine Plaza, Macarthur Square and Wollongong Central). For personal use only use personal For
RETAIL PORTFOLIO 54 RETAIL PORTFOLIO 55 Income and Fair Value Schedule
Income 12 months to 31 Dec ($m) Fair Value Reconciliation Fair Value Development Maintenance Lease Net Other Fair Value % of 31 Dec 18 Capex Capex Incentives Acquisitions/Sales Revaluations Adjustments 31 Dec 19 Portfolio 2018 2019 Variance ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) (%) GPT Portfolio Casuarina Square 18.1 17.0 (1.1) 300.8 3.8 4.7 0.9 0.0 (62.2) 0.0 248.0 3.9 Charlestown Square 55.8 52.7 (3.1) 977.3 12.8 4.0 4.8 0.0 4.1 0.0 1,003.0 15.8 Highpoint Shopping Centre 18.4 18.0 (0.4) 435.0 4.1 1.3 2.7 0.0 (30.6) 0.0 412.5 6.5 Melbourne Central 78.4 78.6 0.2 1,513.0 43.9 9.0 6.2 0.0 45.9 0.0 1,618.0 25.6 Rouse Hill Town Centre 38.1 39.6 1.5 635.2 15.6 3.9 2.7 0.0 22.8 0.0 680.2 10.7 Sunshine Plaza 22.3 28.1 5.8 607.5 33.2 4.1 4.7 0.0 34.0 0.0 683.5 10.8 Westfield Penrith 35.6 35.9 0.3 716.3 2.1 0.4 1.8 0.0 15.4 0.0 736.0 11.6 Assets Sold During the Period Homemaker Maribyrnong 0.8 0.0 (0.8) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Equity Interests GPT Equity Interest in GWSCF (28.5%)1 46.3 45.5 (0.8) 1,013.7 0.0 0.0 0.0 0.0 (75.5) 11.6 949.8 15.0 Total Retail Portfolio 313.8 315.4 1.6 6,198.8 115.5 27.4 23.8 0.0 (46.1) 11.6 6,331.0 100.0 1. Represents GPT’s equity accounted interest in the net assets of the Fund, including net revaluations of investment property and mark to market movements of financial instruments. Net income for the 12 months to 31 December 2019 represents GPT’s share of FFO for the period.
Note: Differences due to rounding. For personal use only use personal For Retail Sales Summary
Comparable Comparable Specialty Centre MAT Centre MAT Growth Specialty MAT Growth1 Specialty MAT1 Occupancy Cost1 ($m) (%) (%) ($psm) (%) GPT Portfolio Casuarina Square 357.5 (2.4) (5.7) 9,844 18.0 Charlestown Square 562.2 (3.9) (1.6) 11,917 15.5 Highpoint Shopping Centre 1,032.1 0.3 (2.0) 11,511 19.0 Melbourne Central 587.5 2.3 (0.7) 13,837 18.5 Rouse Hill Town Centre 477.4 5.1 5.7 10,138 13.6 Westfield Penrith2 691.0 1.0 (0.9) 12,132 18.8 GWSCF Portfolio Casuarina Square 357.5 (2.4) (5.7) 9,844 18.0 Chirnside Park 304.6 1.2 (3.0) 12,187 15.3 Highpoint Shopping Centre 1,032.1 0.3 (2.0) 11,511 19.0 Northland Shopping Centre3 549.2 1.5 (0.3) 9,166 17.5 Parkmore Shopping Centre 280.4 4.8 1.3 10,044 14.6 GPT Weighted Total4 2,864.2 0.7 (0.5) 11,667 17.0 1. Represents Specialty Tenancies less than 400 sqm. 2. Analysis provided by Scentre Group. 3. Analysis provided by Vicinity Centres.
4. Excludes development impacted centres (Sunshine Plaza, Macarthur Square and Wollongong Central). For personal use only use personal For
RETAIL PORTFOLIO 56 RETAIL PORTFOLIO 57 Comparable Change in Retail Sales by Category
Comparable Change in Retail Sales by Category as at 31 December 2019 MAT ($m) 12 Months Growth (%) Department Store 97.2 (6.6) Discount Department Store 227.0 2.1 Supermarket 453.8 3.3 Cinemas 58.7 (6.9) Other Retail¹ 177.9 (1.0) Total Specialties 1,849.6 0.7 • Specialties >400sqm 494.4 4.2 • Specialties <400sqm 1,355.3 (0.5) Total Centre 2,864.2 0.7
Total Specialty Sales Split Fashion, Footwear & Accessories 524.5 (2.1) Technology & Appliances 348.6 7.6 Dining 295.5 2.1 Health & Beauty 277.2 3.4 Leisure 129.3 (3.0) Food Retail 94.4 1.2 General Retail 71.0 (8.3) Jewellery 68.0 (8.1) Homewares 32.3 (1.4) Retail Services 9.0 1.7 Total Specialties 1,849.6 0.7
For personal use only use personal For Note: Excludes development impacted centres (Sunshine Plaza, Macarthur Square and Wollongong Central). 1. Other Retail includes automotive accessories, car wash, general entertainment, fitness, lotto, pad sites/bulky goods and travel agencies. Retail Sales
Specialty MAT Growth1
6.5% 5.9%
4.2% 4.2%
3.2% 2.7% 2.6% 2.5% 2.1% 2.1% 1.8% 1.7% 1.5% 1.2% 1.1% 0.5% 0.4% 0.2% 0.3%
-0.1% -0.5%
Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun 17 Dec 17 Jun 18 Dec 18 Jun 19 Dec 19
Note: From December 2014, based on GPT weighted interest.
For personal use only use personal For Excludes development impacted centres (Sunshine Plaza, Macarthur Square and Wollongong Central). 1. Represents Specialty Tenancies less than 400 sqm.
RETAIL PORTFOLIO 58 RETAIL PORTFOLIO 59 Independent Valuation Summary
Ownership Valuation Capitalisation Rate State (%) Date Valuer ($m) (%) GPT Portfolio Casuarina Square NT 50 31 Dec 19 Savills 248.0 6.00 Charlestown Square NSW 100 30 Jun 19 Cushman & Wakefield 988.0 5.25 Highpoint Shopping Centre VIC 17 31 Dec 19 CBRE 412.5 4.25 Melbourne Central VIC 100 31 Dec 19 Savills 1,618.0 4.50 Rouse Hill Town Centre NSW 100 31 Dec 19 Colliers 680.2 5.50 Sunshine Plaza QLD 50 31 Dec 19 CBRE 683.5 4.75 Westfield Penrith NSW 50 30 Jun 19 M3 733.0 4.75 GWSCF Portfolio Casuarina Square NT 50 31 Dec 19 Savills 248.0 6.00 Chirnside Park VIC 100 30 Sep 19 Colliers 318.7 5.50 Highpoint Shopping Centre VIC 83 31 Dec 19 CBRE 2,062.5 4.25 Macarthur Square NSW 50 30 Sep 19 Cushman & Wakefield 599.9 4.75 Northland Shopping Centre VIC 50 30 Sep 19 Savills 492.5 5.25 Parkmore Shopping Centre VIC 100 30 Sep 19 Urbis 275.2 6.00 Wollongong Central NSW 100 31 Dec 19 Colliers 458.9 5.75
Note: Valuations include ancillary assets. For personal use only use personal For Retail Sustainability
Water (Total) Emissions Waste % 2 2 Area GLA Litres/m kg CO2-e/m Recycled/Diverted GPT Portfolio Casuarina Square 54,900 1,764 88 26 Charlestown Square 94,900 508 62 32 Highpoint Shopping Centre 150,900 1,045 69 34 Melbourne Central 56,300 1,017 155 251 Rouse Hill Town Centre 69,700 1,341 40 31 Sunshine Plaza 107,700 655 70 48 Westfield Penrith 91,400 1,638 76 35 GWSCF Portfolio Casuarina Square 54,900 1,764 88 26 Chirnside Park 39,000 849 44 28 Highpoint Shopping Centre 150,900 1,045 69 34 Macarthur Square 107,200 1,307 67 28 Northland Shopping Centre 97,000 909 96 30 Parkmore Shopping Centre 36,800 875 67 47 Wollongong Central 55,000 677 76 37 Total Portfolio Average 1,046 75 33 Note: Sustainability data as at 31 December 2019 and as presented for assurance according to Global Reporting Initiative (GRI) Sustainability Reporting Standards and Greenhouse Gas Protocol. Full details and assurance available at gpt.com.au/sustainability.
1. Figure reflects combined Melbourne Central and Melbourne Central Tower recycling service. For personal use only use personal For
RETAIL PORTFOLIO 60 RETAIL PORTFOLIO 61 Retail Sales Categories
Broad Category Sub Category Tenant Examples
Department Store Department Store David Jones, Myer Discount Department Store Discount Department Store Kmart, Big W, Target
RETAIL Supermarkets Supermarket Woolworths, Coles, Aldi Fashion, Footwear & Unisex, Womenswear, Menswear, Footwear, Fashion Accessories, H&M, Uniqlo, Zara, Country Road, Peter Alexander, Witchery, Sportsgirl, Lovisa, Strandbags, Accessories Childrenswear Best & Less, Cotton On, Sunglass Hut, Foot Locker, Connor Dining Cafes, Restaurants, Food Court, Takeaway The Bavarian, Grill’d, The Coffee Club, Guzman y Gomez, McDonalds, Donut King, Boost Juice Food Retail Bakeries/Cakes/Pastries, Butcher, Delicatessen, Fruit & Bakers Delight, Michel’s Patisserie, Harris Farm, Dan Murphy, Healthy Life, Rainbow Meats, Vegetables, Liquor, Poultry, Seafood, Other Specialty Food Deliworld, 7-Eleven, Costi Seafood Health & Beauty Cosmetics, Hairdressing/Beauty/Laser, Massage & Nail Bars, Mecca, Sephora, Just Cuts, Laserclinics, OPSM, Terry White, Priceline, Chemist Warehouse, Optometrist, Pharmacy ProfessioNAIL General Retail Car Show Room, Discount Variety, Educational, Florist, Giftware, Toyota, Daiso, The Reject Shop, Riot Art & Craft, T2, Lincraft, Casey Toys, Tobacco Station, Pets, Toys, Miscellaneous Family Pets Homewares General Homewares Adairs, Bed Bath and Table, Habitania, Dusk, Robins Kitchen, Babyco Jewellery Jewellery Angus & Coote, Prouds, Swarovski, Pandora Leisure Athleisure, Books, Newsagents, Sports, Stationery Nike, Puma, Lorna Jane, Dymocks, Rebel, Kathmandu, Anaconda, InSport, Kikki K, Typo, Smiggle, QBD The Bookshop, Nextra Retail Services Key Cutting/Watch Repair & Shoe Repair, Other Retail Services Mister Minit, Looksmart Alterations, Bay Audio, Dry Cleaners, Watch Works Technology & Appliances Aggregators, Film Processing/Photography, Mobile & Apple, Samsung, JB Hi Fi, Camera House, Telstra, Optus, Shaver Shop, EB Games, Sanity Accessories, Music/Video/Games, Pure Brands Cinemas Cinemas Hoyts, Reading Cinemas Other Retail Car Wash, Automotive, Entertainment – General, Fitness, Lotto, Star Car Wash, Kmart Tyre and Auto, Strike Bowling, Timezone, Holey Moley, Fitness First, Pad Sites/Bulky Goods, Travel Agent Anytime Fitness, Flight Centre, Lotto
For personal use only use personal For Non-retail ATM, Banks/Insurance/Other Financial, Education, Medical, Petrol ANZ, CBA, Westpac, BUPA, Medicare, Currency Exchange, Australia Post, TAB, Station, Other Non Retail Mortgage Choice Office Portfolio
Annual Result 2019 For personal use only use personal For Office Portfolio Overview
GPT’s office portfolio comprises ownership in 24 high quality assets with a total investment of $6.1 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 Queensland GPT Owned GPT Owned GPT Owned • Australia Square (50%) • Melbourne Central Tower • One One One Eagle Street • 2 Park Street (50%) • 181 William and 550 Bourke (33.3%) Streets (50%) • Governor Phillip Tower & GWOF Owned Governor Macquarie Tower NT GWOF Owned • One One One Eagle Street (25%) QLD • 2 Southbank Boulevard (66.7%) • Darling Park 1 & 2 (25%) • 8 Exhibition Street (50%) • Riverside Centre Brisbane • 60 Station Street WA • Queen & Collins 2 • 4 Murray Rose Avenue SA • 150 Collins Street GWOF Owned • 530 Collins Street Sydney NSW • Liberty Place (50%) • 655 Collins Street 11 • Darling Park 1 & 2 (50%) • 750 Collins Street • Darling Park 3 • 181 William and 550 Bourke VIC • 580 George Street Streets (50%) 6 l Number of assets in each state 11 Melbourne • workplace • 800/808 Bourke Street • 32 Flinders Street
TAS For personal use only use personal For
All totals and averages are based on GPT’s balance sheet portfolio and weighted ownership interest in the GWOF portfolio.
OFFICE PORTFOLIO 62 OFFICE PORTFOLIO 63 Office Portfolio Summary
The GPT office portfolio has exposure to Prime Grade office assets and benefits from a diversified tenant base.
Top Ten Tenants1 Tenant Mix by Industry2 Geographic Weighting As at 31 December 2019 As at 31 December 2019 As at 31 December 2019
Amazon Web Government CBA IAG Deloitte Services SYDNEY 59%
6.2% 6.0% 5.2% 4.3% 3.3%
MELBOURNE 31%
3.3% 3.0% 2.9% 2.4% 2.1%
QBE NBN Co Members NAB Citibank BRISBANE Equity Bank 10%
Banking 18% Other Business Services 8% Insurance 15% Other 8% Info and Comms Technology 13% Government 8% Accounting & Finance 13% Mining & Energy 3% Legal 11% Co-working/Serviced offices 3%
For personal use only use personal For 1. Based on gross rent. 2. By area. Including signed leases. Income and Fair Value Schedule
Income Fair Value Reconciliation 12 months to 31 Dec ($m) Capex Development Fair Value & Other Maintenance Lease Net Other Fair Value % of 31 Dec 18 Capex Capex Incentives Acquisitions Sales Revaluations Adjustments 31 Dec 19 Portfolio 2018 2019 Variance ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) (%) GPT Portfolio Australia Square, Sydney 26.7 26.1 (0.6) 557.5 0.7 4.6 5.8 – – 24.9 – 593.5 9.8 2 Park Street, Sydney 35.9 37.4 1.5 762.5 – 0.9 3.5 – – 28.1 – 795.0 13.1 MLC Centre, Sydney 32.0 8.8 (23.2) 775.0 1.7 2.7 1.1 – (796.3) 15.8 – – – Governor Phillip Tower & Governor 25.3 27.4 2.1 564.5 2.0 1.1 2.9 – – 31.3 – 601.8 9.9 Macquarie Tower, Sydney Darling Park 1 & 2, Sydney1 – 10.5 10.5 – 0.5 1.8 0.5 533.0 – 8.6 – 544.4 8.9 60 Station Street, Parramatta 4.7 15.1 10.4 278.0 – 0.3 – – – 3.7 – 282.0 4.6 4 Murray Rose Avenue, Sydney Olympic Park 0.8 5.0 4.2 125.0 6.2 0.1 0.2 – – 0.0 – 131.5 2.2 Melbourne Central Tower, Melbourne 34.9 37.3 2.4 603.0 25.6 7.6 5.6 – – 54.7 – 696.5 11.4 181 William and 550 Bourke Streets, Melbourne 21.1 21.4 0.3 380.0 2.5 1.4 3.6 – – 16.5 – 404.0 6.6 One One One Eagle Street, Brisbane 18.8 20.1 1.3 300.0 0.2 0.3 1.9 – – 0.6 – 303.0 5.0 Assets Under Development 32 Smith Street, Parramatta – – – 62.0 53.4 – – – – 6.6 – 122.0 2.0 Equity Interests GPT Equity Interest in GWOF (22.9%)1 69.8 72.2 2.4 1,524.0 – – – – – 80.4 6.2 1,610.6 26.5 Total Office Portfolio 270.0 281.3 11.3 5,931.5 92.8 20.8 25.1 533.0 (796.3) 271.2 6.2 6,084.3 100.0
For personal use only use personal For 1. GPT Equity Interest in GWOF represents GPT’s equity accounted interest in the net assets of the Fund, including net revaluations of investment property and mark to market movements of financial instruments. Net income represents GPT’s share of FFO for the period.
OFFICE PORTFOLIO 64 OFFICE PORTFOLIO 65 Office Portfolio Summary
Office Occupancy Office NLA (100% 31 Dec 19 31 Dec 19 Inc. Signed Inc. Heads of WALE Ownership Interest) Fair Value Cap Rate Actual Leases Agreement by Income State (%) (sqm) ($m) (%) (%) (%) (%) (Years)
GPT Portfolio Australia Square, Sydney NSW 50 51,700 593.5 4.78 92.9 96.2 99.7 3.4
2 Park Street, Sydney NSW 50 73,300 795.0 4.75 98.3 99.2 99.2 4.0
Governor Phillip Tower & Governor Macquarie NSW 25 84,400 601.8 4.39 99.5 99.5 99.5 4.6 Tower, Sydney
Darling Park 1, Sydney DP1: 5.00 DP1: 100.0 DP1: 100.0 DP1: 100.0 DP1: 4.0 NSW 25 101,900 544.4 Darling Park 2, Sydney DP2: 5.00 DP2: 96.2 DP2: 96.2 DP2: 100.0 DP2: 8.7
60 Station Street, Parramatta NSW 100 25,100 282.0 5.13 100.0 100.0 100.0 2.8
4 Murray Rose Avenue, Sydney Olympic Park NSW 100 15,700 131.5 5.50 80.9 80.9 86.1 10.4
Melbourne Central Tower, Melbourne VIC 100 65,500 696.5 4.88 98.4 99.6 99.6 5.4
181 William and 550 Bourke Streets, Melbourne VIC 50 76,200 404.0 5.00 97.5 100.0 100.0 4.1
One One One Eagle Street, Brisbane QLD 33.3 63,800 303.0 5.00 100.0 100.0 100.0 5.8 For personal use only use personal For Office Occupancy Office NLA (100% 31 Dec 19 31 Dec 19 Inc. Signed Inc. Heads of WALE Ownership Interest) Fair Value Cap Rate Actual Leases Agreement by Income State (%) (sqm) ($m) (%) (%) (%) (%) (Years) GWOF Portfolio Liberty Place, 161 Castlereagh Street, Sydney NSW 50 56,500 792.5 4.38 100.0 100.0 100.0 8.4 Darling Park 1, Sydney DP1: 5.00 DP1: 100.0 DP1: 100.0 DP1: 100.0 DP1: 4.0 NSW 50 101,900 1,088.8 Darling Park 2, Sydney DP2: 5.00 DP2: 96.2 DP2: 96.2 DP2: 100.0 DP2: 8.7 Darling Park 3, Sydney NSW 100 29,800 595.7 4.88 100.0 100.0 100.0 5.8 580 George Street, Sydney NSW 100 37,100 660.0 4.88 95.3 99.1 99.1 4.9 workplace6, Sydney NSW 100 16,300 304.2 5.13 100.0 100.0 100.0 8.9 2 Southbank Boulevard, Melbourne VIC 100 53,300 672.0 4.88 96.7 99.2 100.0 5.7 8 Exhibition Street, Melbourne VIC 50 44,500 275.2 4.88 100.0 100.0 100.0 4.1 32 Flinders Street, Melbourne VIC 100 N/A 87.0 N/A N/A N/A N/A N/A Queen & Collins, Melbourne VIC 100 34,900 300.0 4.75 N/A N/A N/A N/A 150 Collins Street, Melbourne VIC 100 19,100 270.3 4.75 100.0 100.0 100.0 6.5 530 Collins Street, Melbourne VIC 100 65,300 711.6 4.75 93.5 94.7 94.7 3.7 655 Collins Street, Melbourne VIC 100 16,600 168.0 4.75 100.0 100.0 100.0 9.9 750 Collins Street, Melbourne VIC 100 41,400 315.6 4.75 0.0 100.0 100.0 15.8 800/808 Bourke Street, Melbourne VIC 100 59,600 600.2 4.88 100.0 100.0 100.0 7.6 181 William and 550 Bourke Streets, Melbourne VIC 50 76,200 404.0 5.00 97.5 100.0 100.0 4.1 One One One Eagle Street, Brisbane QLD 66.7 63,800 606.0 5.00 100.0 100.0 100.0 5.8
For personal use only use personal For Riverside Centre, Brisbane QLD 100 51,300 745.0 5.00 71.8 96.5 98.9 6.9 Total 1,083,400 4.85 94.31 98.31 99.01 5.3
1. Portfolio occupancy metrics exclude Queen & Collins as it is currently undergoing redevelopment.
OFFICE PORTFOLIO 66 OFFICE PORTFOLIO 67 Independent Valuation Summary
Ownership Valuation Capitalisation Rate State (%) Date Valuer ($m) (%) GPT Portfolio Australia Square, Sydney NSW 50 31 Dec 19 CBRE 593.5 4.78 2 Park Street, Sydney NSW 50 31 Dec 19 Knight Frank 795.0 4.75 Governor Phillip Tower & Governor Macquarie Tower, Sydney NSW 25 31 Dec 19 Savills 601.8 4.39 Darling Park 1 & 2, Sydney NSW 25 31 Dec 19 Cushman & Wakefield 544.4 DP1: 5.00 DP2: 5.00 60 Station Street, Parramatta NSW 100 31 Dec 19 Colliers 282.0 5.13 4 Murray Rose Avenue, Sydney Olympic Park NSW 100 31 Dec 19 Cushman & Wakefield 131.5 5.50 Melbourne Central Tower, Melbourne VIC 100 31 Dec 19 CBRE 696.5 4.88 181 William and 550 Bourke Streets, Melbourne VIC 50 31 Dec 19 Savills 404.0 5.00
One One One Eagle Street, Brisbane QLD 33.3 31 Dec 19 Colliers 303.0 5.00 For personal use only use personal For
Space&Co., 530 Collins Street, Melbourne Ownership Valuation Capitalisation Rate State (%) Date Valuer ($m) (%) GWOF Portfolio Liberty Place, 161 Castlereagh Street, Sydney NSW 50 31 Dec 19 Cushman & Wakefield 792.5 4.38 Darling Park 1 & 2, Sydney NSW 50 31 Dec 19 Cushman & Wakefield 1,088.8 DP1: 5.00 DP2: 5.00 Darling Park 3, Sydney NSW 100 30 Sep 19 Cushman & Wakefield 595.0 4.88 580 George Street, Sydney NSW 100 31 Dec 19 Colliers 660.0 4.88 workplace6, Sydney NSW 100 30 Sep 19 Cushman & Wakefield 304.0 5.13 2 Southbank Boulevard, Melbourne VIC 100 31 Dec 19 Colliers 672.0 4.88 8 Exhibition Street, Melbourne VIC 50 30 Sep 19 JLL 274.0 4.88 32 Flinders Street, Melbourne VIC 100 31 Dec 19 CBRE 87.0 N/A Queen & Collins, Melbourne VIC 100 31 Dec 19 JLL 300.0 4.75 150 Collins Street, Melbourne VIC 100 30 Sep 19 Savills 270.0 4.75 530 Collins Street, Melbourne VIC 100 30 Sep 19 Knight Frank 702.5 4.75 655 Collins Street, Melbourne VIC 100 30 Sep 19 CBRE 168.0 4.75 750 Collins Street, Melbourne VIC 100 30 Sep 19 Savills 315.0 4.75 800/808 Bourke Street, Melbourne VIC 100 30 Sep 19 Colliers 600.0 4.88 181 William and 550 Bourke Streets, Melbourne VIC 50 31 Dec 19 Savills 404.0 5.00 One One One Eagle Street, Brisbane QLD 66.7 31 Dec 19 Colliers 606.0 5.00
Riverside Centre, Brisbane QLD 100 31 Dec 19 Urbis 745.0 5.00 For personal use only use personal For
OFFICE PORTFOLIO 68 OFFICE PORTFOLIO 69 Office Sustainability
NABERS Energy Rating (including Green Power) NABERS Water Rating NABERS Energy Rating (excluding Green Power) 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 GPT Portfolio Australia Square, Sydney (Tower) 4.5 4.5 5.0 5.0 5.0 3.5 3.5 3.5 3.5 4.0 4.0 4.0 4.5 4.5 4.5 Australia Square, Sydney (Plaza) 5.5 5.5 5.5 5.5 5.5 4.0 3.5 4.0 4.0 4.0 5.0 5.0 5.0 5.5 5.5 2 Park Street, Sydney 5.0 5.0 5.0 5.0 5.0 3.5 3.5 4.0 4.0 4.0 4.5 4.5 4.5 4.5 4.5 Governor Macquarie Tower, Sydney 4.5 4.5 4.0 4.5 5.0 3.0 3.0 3.5 3.5 3.5 4.0 4.0 3.0 4.0 4.5 Governor Phillip Tower, Sydney 4.0 3.5 4.5 5.0 5.0 3.0 3.0 3.5 3.5 3.5 3.0 3.0 4.0 4.5 4.5 Darling Park 1, Sydney 5.0 5.0 5.0 5.5 5.5 3.5 3.5 4.0 3.5 3.5 5.0 5.0 5.0 5.0 5.0 Darling Park 2, Sydney 5.5 5.5 5.5 5.0 6.0 3.0 3.5 3.5 3.5 3.5 5.5 5.5 5.5 4.0 5.5 60 Station Street, Parramatta 5.0 5.0 4.0 4.0 5.0 5.0 Melbourne Central, Melbourne 5.0 5.5 5.5 5.0 5.5 3.0 3.0 3.0 3.0 3.0 4.5 4.5 4.5 4.5 5.0 181 William and 550 Bourke Streets, Melbourne 5.0 5.0 5.0 5.5 6.0/5.5 4.5 4.5 4.0 3.5 3.5 5.0 5.0 5.0 5.0 5.0/5.0
One One One Eagle Street, Brisbane 5.5 5.5 6.0 5.5 6.0 4.5 4.5 4.5 4.5 4.0 5.5 5.5 5.5 5.5 5.5 For personal use only use personal For
800/808 Bourke Street, Melbourne NABERS Energy Rating (including Green Power) NABERS Water Rating NABERS Energy Rating (excluding Green Power) 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 GWOF Portfolio Liberty Place, 161 Castlereagh Street, Sydney 5.0 5.0 5.5 5.0 6.0 3.5 3.5 4.0 4.0 4.0 5.0 5.0 5.0 5.0 5.0 Darling Park 1, Sydney 5.0 5.0 5.0 5.5 5.5 3.5 3.5 4.0 3.5 3.5 5.0 5.0 5.0 5.0 5.0 Darling Park 2, Sydney 5.5 5.5 5.5 5.0 6.0 3.0 3.5 3.5 3.5 3.5 5.5 5.5 5.5 4.0 5.5 Darling Park 3, Sydney 5.5 6.0 6.0 5.0 5.5 3.5 3.0 3.5 3.5 3.0 5.0 5.0 5.0 4.5 5.0 580 George Street, Sydney 5.0 5.5 5.5 5.0 6.0 3.5 3.0 3.0 3.0 3.5 4.5 4.0 3.0 4.5 5.0 workplace6, Sydney 5.5 5.5 5.5 5.5 6.0 4.0 3.5 4.5 4.5 4.5 5.0 5.0 5.0 5.0 5.0 2 Southbank Boulevard, Melbourne 5.0 5.5 5.5 4.5 5.5 3.5 4.0 3.5 3.5 3.5 4.5 4.5 4.5 4.5 4.5 8 Exhibition Street, Melbourne 4.5 4.5 5.0 4.5 6.0 4.5 3.5 3.5 3.5 3.0 4.5 5.0 4.5 4.5 5.0 Queen & Collins, Melbourne1 3.0 3.0 3.0 NR 2.0 2.0 NR 3.0 3.0 3.0 NR 150 Collins Street, Melbourne 4.5 5.0 5.0 2.5 4.0 3.5 3.5 5.0 5.0 530 Collins Street, Melbourne 5.0 5.5 5.5 5.0 6.0 3.0 3.0 3.0 3.0 3.0 4.5 4.5 4.5 4.5 4.5 655 Collins Street, Melbourne 4.0 5.0 5.0 4.5 4.5 4.5 3.5 3.0 3.0 3.0 4.0 4.0 4.0 4.5 4.5 750 Collins Street, Melbourne 4.5 5.5 5.5 5.0 6.0 4.0 5.0 5.0 4.5 5.0 5.0 5.0 5.0 5.0 5.0 181 William and 550 Bourke Streets, Melbourne 5.0 5.0 5.0 5.5 6.0/5.5 4.5 4.5 4.0 3.5 3.5 5.0 5.0 5.0 5.0 5.0/5.0 800/808 Bourke Street, Melbourne 5.0 5.5 5.5 5.5 6.0 3.5 3.0 3.0 3.5 3.5 5.0 5.0 5.0 5.0 5.0 One One One Eagle Street, Brisbane 5.5 5.5 6.0 5.5 6.0 4.5 4.5 4.5 4.5 4.0 5.5 5.5 5.5 5.5 5.5 Riverside Centre, Brisbane 5.0 5.5 5.5 5.0 6.0 3.5 3.5 3.5 3.5 3.5 4.5 4.5 4.5 4.5 5.0 Note: NABERS rating: 1 to 6 stars, 1 = poor performance, 6 = exceptional performance. Ratings are as at 31 December of each year. 1. Queen & Collins was acquired in December 2016 and was under tenant management until redevelopment commenced in 2019. 2016, 2017 and 2018 ratings are whole building scope and excluded from portfolio averages. The asset is
ineligible for NABERS while under redevelopment. For personal use only use personal For
OFFICE PORTFOLIO 70 OFFICE PORTFOLIO 71 Office Sustainability
Water Emissions Waste 2 2 Area NLA Litres/m kg CO2-e/m % Recycled/Diverted GPT Portfolio Australia Square, Sydney 51,700 869 64 42 2 Park Street, Sydney 73,300 673 64 39 4 Murray Rose Avenue, Sydney Olympic Park 15,700 404 41 19 60 Station Street, Parramatta 25,100 582 57 8 Governor Phillip Tower & Governor Macquarie Tower, Sydney 84,400 707 76 43 Darling Park 1 & 2, Sydney1 101,900 620 33 46 Melbourne Central Tower, Melbourne2 65,500 595 41 25 181 William and 550 Bourke Streets, Melbourne 76,200 677 29 29
One One One Eagle Street, Brisbane 63,800 566 28 34 For personal use only use personal For
150 Collins Street, Melbourne Water Emissions Waste 2 2 Area NLA Litres/m kg CO2-e/m % Recycled/Diverted GWOF Portfolio Liberty Place, 161 Castlereagh Street, Sydney 56,500 784 7 44 Darling Park 1 & 2, Sydney1 101,900 620 33 46 Darling Park 3, Sydney 29,800 840 34 37 580 George Street, Sydney 37,100 721 38 40 workplace6, Sydney 16,300 521 -15 43 2 Southbank Boulevard, Melbourne 53,300 579 35 39 8 Exhibition Street, Melbourne 44,500 571 4 27 Queen & Collins, Melbourne3 34,900 N/A N/A N/A 150 Collins Street, Melbourne 19,100 604 8 34 530 Collins Street, Melbourne 65,300 567 28 31 655 Collins Street, Melbourne 16,600 594 41 41 750 Collins Street, Melbourne4 41,400 N/A N/A N/A 800/808 Bourke Street, Melbourne 59,600 554 1 29 181 William and 550 Bourke Streets, Melbourne 76,200 677 29 29 One One One Eagle Street, Brisbane 63,800 566 28 34 Riverside Centre, Brisbane 51,300 821 33 42 Portfolio Average 655 35 40 Note: Sustainability data as at 31 December 2019 and as presented for assurance according to Global Reporting Initiative (GRI) Sustainability Reporting Standards and Greenhouse Gas Protocol. Full details and assurance available at gpt.com.au/sustainability 1. Darling Park 1 & 2, Sydney includes Cockle Bay Wharf. 2. Melbourne Central Tower waste recycling is a shared service with Melbourne Central retail centre. For personal use only use personal For 3. Queen & Collins was acquired in December 2016 and was under tenant management until redevelopment commenced in 2019. 4. Asset is currently under tenant management.
OFFICE PORTFOLIO 72 OFFICE PORTFOLIO 73 Lease Expiry Profile
Lease Expiry Profile (by Income)
14% 13% 13%
11% 11%
8% 8%
6% 5% 5% 4%
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+
Note: Includes Signed Leases. For personal use only use personal For OfficeOfficeOffice –– – SydneySydneySydney CBD CBD OfficeOffice – –SydneySydney CBD CBD 11 Sydney CBD: Rents and Incentives (4Q19) $1,300 Sydney CBD: Rents and Incentives (4Q19) 4 0% • Sydney’s vacancy increased slightly to 5.0% over the past $1,300 4 0% • Sydney’sOffice vacancy – Sydney increased slightly CBD to 5.0% over the past $1,177 1 $1,200 1 $1,200 Sydney CBD: Rents and Incentives (4Q19) $1,177 1 12 months due to negative net absorption in the CBD $1,300 Sydney CBD: Rents andGross Ince Incentiventives ( 4Q19) +4.8%4 0%3 5% • Sydney’s12Sydney’s months vacancy due vacancy to increasednegative increased net slightly slightlyabsorption to to5.0% 5.0% in overthe over CBD the the past past $1,300$1,100 Gross Incentive +4.8%1 3 5%4 0% • which was mainly a result of government moves to $1,100 (RHS) $1,177 $1,200$1,200 (RHS) $1,177 1 which was mainly a result of government moves to $1,000 1212 months months due due to tonegative negative net net absorption absorption in inthe the CBD CBD $1,000 Sydney CBD: RentsGross and IIncentivencentiv es (4Q19) +4.8%1 13 5%3 0% Parramatta. The overall CBD and metro office demand $1,100$1,300 Gross Incentive +4.8% 3 0%34 5% 0% •Parramatta.Sydney’s vacancy The overall increasedCBD and slightly metro to office 5.0% overdemand the past $1,100$9 00 (RHS) whichwhich was was mainly mainly a result a result of ofgovernment government moves moves to to $9 00 (RHS) $$8301,177 $1,000$1,200 $830 1
was positive at 41,000 sqm. The future supply pipeline aa $1,000 12 months due to negative net absorption in the CBD $8 00 +0.4%1 13 0%2 5% pp was positive at 41,000 sqm. The future supply pipeline aa GrossNet Incentive Face +4.8% 3 0% Parramatta. The overall CBD and metro office demand $8 00 +0.4% 2 5%3 5%
Parramatta. The overall CBD and metro office demand pp $9$1,100 00 Net Face
remains measured and has substantial pre-commitment. mm $9$7 00 Rent(RHS) (LHS) $830$830 qq remainswhich measuredwas mainly and a result has substantial of government pre- commitment.moves to mm $7 00 Rent (LHS) 1 ss aa was positive at 41,000 sqm. The future supply pipeline qq $8$1,000 00 +0.4% 12 5%2 0% // was positive at 41,000 sqm. The future supply pipeline aa 21.0%
pp +0.4% ss $8$6 00 Net Face 23 5% 0% 2 0% $$ pp // Net Face 21.0% Parramatta. The overall CBD and metro office demand $6 00 Net Effective 1 $$ +250bps remainsFace rental measured growth and remained has substantial solid at pre4.8%-commitment. for the year. mm $7 00$9 00 Net EffectiveRent (LHS) 1 • remains measured and has substantial pre-commitment. mm Face rental growth remained solid at 4.8% for the year. qq $7$5 00 Rent Rent(LHS) (LHS) * +250b$830ps • qq ss $5 00 2 0%1 5% ss Rent (LHS) * // 21.0% 1 was positive at 41,000 sqm. The future supply pipeline aa 2 0% $6// 00$8 00 21.0%+0.4%1 5%2 5%
There was minimal growth in effective rents due to $$ pp $6 00 Net EffectiveNet Face $$ $4 00 1 Net Effective • FaceThere rental was minimal growth remainedgrowth in solideffective at 4.8% rents for due the to year. $4 00 +250+2bp50sbps1 • Faceremains rental measured growth remainedand has substantial solid at 4.8% pre for-commitment. the year. $5mm 00$7 00 Rent (LHS)Rent * (LHS)
increasing incentives. qq $5$3 00 Rent (LHS) * 1 5%1 0% increasing incentives. $3ss 00 1 0%12 5% 0% ThereThere was was minimal minimal growth growth in ineffective effective rents rents due due to to $4// 00$6 00 21.0% $$ $4 00 Net Effective • Face rental growth remained solid at 4.8% for the year. +250bps1 •increasingincreasingPrime yields incentives. incentives. have firmed by 25 bps during 2019. $3 00$3$5 00 Rent (LHS) * 1 0%1 0% • Prime yields have firmed by 25 bps during 2019. D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 1 5% There was minimal growth in effective rents due to $4 00D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 Prime yields have firmed by 25 bps during 2019. • • Primeincreasing yields incentives. have firmed by 25 bps during 2019. $3 00 1 0% D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 Sydney CBD: Demand, Supply & Vacancy (4Q19) D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 Sydney CBD: Demand, Supply & Vacancy (4Q19) D ec -04 D ec -05 SydD ec -06 neyD ec -07 CBD ec -08 D: DU ec -09 ppD ece -10 r &D ec -11 Lower Prime Yields (4Q19) 9% Sydney CBD: Upper & Lower Prime Yields (4Q19) 300,000 Vacancy 1 2% 9% 300,000• Prime yieldsSydney ChaveBD: VacancyD efirmedman d, S ubypp l25y & bpsVaca nduringcy (4Q19 2019.) 1 2% 8% D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 Sydney CBD:Rate Dem (RHS)and, Supply & Vacancy (4Q19) D ec -04 SydD ecS -05 nyedyD ecn -06 CeByD ec -07 DC:B DU ecD -08 p: pUD ec -09eprp &De ec -10 r L &oD ec -11 w Leorw PeLowerri mPreim YPrimeiee lYdies l(d4sQ (149Q)19) Rate (RHS) 20y Avg. 7.8% 8%9% Lower Prime 20y Avg. 7.8% 9%7% 300,000200,000 VacancyVacancy 1 2%8% 200,000300,000 8% 1 2% 7%8% Sydney CRateBDRate: (RHS)De m(RHS)and, Supply & Vacancy (4Q19) 8%6% Sydney CBD: Upper & LoLowerweLowerr PPrimerim Primee Yields (4Q19) mm 20y Avg. 7.8% 5.0% 6% uu 100,000 20y Avg. 7.8% 4% mm 200,000 5.0% 8% 7% 9% nn uu 100,000200,000 Vacancy 4% 8% 7%5% Upper Prime nn dd nn 300,000 1 2% 5%ll Upper Prime 4.75% aa nn dd 8% 6%ee ll 4.75%
mm Lower Prime ii aa Rate (RHS) rr 0 5.0% 0% 6%
mm
5.0% ee 4% YY uu 100,000 4% ee
20y Avg. 7.8% ii rr 0 -15,9790% 4.25% uu 100,000 4% 4% nn pp YY ee 4.25% 7% nn 200,000 -15,979 8% 5% Upper Prime nn
dd Upper Prime pp 5% nn
ll dd 3% 4.75% aa
mm -63,164
ll 4.75% -100,000 Net Absorption -4% aa ee
3% qq ii rr ee mm -100,0000 -63,164 -4%0% 6%
Net Absorption ii
rr 4%
mm 0 0% ss 5.0% YY ee qq -15,979 4% 4.25%
Net Supply YY 10y Bond Yield ee (LHS) 2% uu 100,000 4% 4.25% pp
ss -15,979
pp Net Supply 10y Bond Yield nn (LHS) 2% -200,000 -8% 3% 5% Upper Prime nn (LHS) dd mm -100,000 -63,164 -4% 3% Net Absorption ll 4.75%1.20%
mm -63,164 -200,000aa -100,000 -8%-4% 1% qq Net Absorption (LHS)
ee
qq 1.20% ii ss rr 0 0% 1%
ss (LHS) Net Supply 4% 10y Bond Yield
2%YY ee -300,000 (LHS) Net Supply -15,979 -1 2% 2%0% 10y Bond Yield 4.25% pp -200,000 (LHS) -8% -300,000-200,000 (LHS) -1 2%-8% 0%1% 3% 1.20% mm -100,000 Net Absorption -63,164 -4% 1% 1.20% qq
ss Net Supply 10y Bond Yield -300,000-300,000 (LHS) -1 2%-1 2% 0% 0%2% D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 -200,000 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D(LHS) ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 -8% D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 1%D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 1.20% JLL Research Q4 2019, GPT Research. * The effective rent is calculated by deducting from the face rental the amortised present value of incentives over an assumed 10 year lease term
-300,000D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 -1 2% 0%D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 JLLonly use personal For Research1 Q4 2019, GPT Research. * The effective rent is calculated by deducting from the face rental the amortised present value of incentives over an assumed 10 year lease term D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 Change during theD ec -04 pastD ec -05 12 monthsD ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 1 Change during the past 12 months
JLL ResearchJLL Research Q4 2019, Q4 2019, GPT Research.GPT Research. * The *effective The effective rent isrent calculated is calculated by deducting by deducting from fromthe face the rentalface rental the amortised the amortised present present value value of incentives of incentives over anover assumed an assumed 10 year 10 leaseyear lease term term 1 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 Change during the pastD ec -04 12 monthsD ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 1 Change during the past 12 months
JLL Research Q4 2019, GPT Research. * The effective rent is calculated by deducting from the face rental the amortised present value of incentives over an assumed 10 year lease term 1 Change during the past 12 months
OFFICE PORTFOLIO 74 OFFICE PORTFOLIO 75 Office – Melbourne CBD OfficeOffice – Melbourne– Melbourne CBD CBD Melbourne CBD: Rents and Incentives (4Q19) 2 Office – Melbourne CBD $6 50 Melbourne CBD: Rents and Incentives (4Q19) 4 5% 2 Melbourne CBD: Rents and Incentives (4Q19) $623 2 • Melbourne’s vacancy rate ended 2019 at 3.4%, the $6 50 Melbourne CBD: Rents and Incentives (4Q19) 4 5% 2 $623 • Melbourne’s vacancy rate ended 2019 at 3.4%, the $6 50 $6 50 Net Face $623 +7.3%$6234 5%1 4 5% • Melbourne’s• Melbourne’s vacancy vacancy rate rateended ended 2019 2019 at 3.4%, at 3.4%, the the $6 00 Net Face +7.3%1 lowest level it has been in 31 years. This was driven $6 00 Net Face +7.3%1 1 4 0% lowest level it has been in 31 years. This was driven $6 00 $6 00 Melbourne CBD: Rents and IncenRenttNetives Face(LHS) (4Q19) +7.3%4 0% 2 lowestlowest level level it has it beenhas been in 31 in years. 31 years. This Thiswas wasdriven driven $6$5 50 Rent (LHS) 4 0% 44 5% 0% • Melbourne’sby a moderate vacancy level of rate net endedabsorption 2019 andat 3.4%, minimal the $5 50 Net Incentive Rent (LHS) $623 by a moderate level of net absorption and minimal $5 50 $5 50 Net Incentive 1 3 5% by a bymoderate a moderate level level of net of absorption net absorption and minimaland minimal $6$5 00 Net Incentive(RHS) Net Face +7.3%3 5% net supply. $5 00 Net Incentive 28.7%3 5% 43 0% 5% lowest level it has been in 31 years. This was driven $5 00 aa (RHS) Rent (LHS)
net supply. pp $5 00 (RHS) 28.7% aa (RHS) net supply. 28.7% 1 3 0% aa $4 50 net supply. pp $5 50 -21bps28.7% aa 1 3 0% pp $4 50 mm pp -21bps by a moderate level of net absorption and minimal Net Incentive 1 3 0%
1
$4 50 qq -21bps 3 0% mm $4 50 -21bps 3 5% ss Face and effective rental growth remained strong mm qq
• mm // $5$4 00 (RHS)
qq 2 5% Face and effective rental growth remained strong ss • qq
$$ 28.7% net supply. // $4 00 $413 aa Face and effective rental growth remained strong ss 2 5% • Face and effective rental growth remained strong ss • // $4 00 $$ pp
// $4 00 $413 2 5%
during the past 12 months. Incentives reduced 1 1 32 0% 5% $$ $4$3 50 $413 during the past 12 months. Incentives reduced $$ 1 -21bps8.2%$413
$3 50 mm Net Effective duringduringthe pastthe past12 months. 12 months. Incentives Incentives reduced reduced 8.2%1 1 2 0% $3 50 qq $3 50 Net Effective 8.2% 8.2%2 0% • Faceslightly and during effective the rentalyear. growth remained strong ss $3 00 Net EffectiveRentNet Effective (LHS) * 2 0%
// $4 00 slightly during the year. $3 00 Rent (LHS) * 22 5% 0% slightly during the year. $$ $413 slightly during the year. $3 00 $3 00 Rent (LHS)Rent * (LHS) * 1 5% during the past 12 months. Incentives reduced $3$2 50 8.2%11 5% Prime yields have firmed by 31 bps during 2019. $2 50 Net Effective 1 5% 1 5% Prime• yields have firmed by 31 bps during 2019. $2 50 $2 50 2 0% • PrimeslightlyPrimeyieldsyields during have have firmed the firmedyear. by 31 by bps 31 duringbps during 2019. 2019. $3$2 00 Rent (LHS) * 1 0% • $2 00 1 0% $2 00 $2 00 1 0% 11 5% 0% • Prime yields have firmed by 31 bps during 2019. $2 50
$2 00 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 1 0% D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21
Melbourne CBD: Demand, Supply & Vacancy (4Q19)
D ec -04 D ec -05 MDe ec -06 lboD ecu -07 rnDe ec -08 CBD ec -09 D: UD ec -10 ppeD ec -11 r &D ec -12LowD ec -13 er PD ec -14 rimD ec -15e YiD ece -16 ldsD ec -17 (4QD ec1 -18 9) D ec -19 D ec -20 D ec -21 Melbourne CBD: Demand, Supply & Vacancy (4Q19) Melbourne CBD: Upper & Lower Prime Yields (4Q19) MelboMurenlbeo CuBrnDe: CDBemD:a Dnde,m Saunpdp,l Sy u&p pVlayc &an Vcay c(a4nQc1y9 )(4Q19) 9% MelboMurenlbeo CuBrnDe: CUBppDe: rU &p pLeorw &e rL Powrimere P Yriiemldes Y (i4eQld1s9 )(4Q19) 300,000 1 2% 9% Lower Prime 300,000 Vacancy 1 2% 9% 9% Lower Prime 300,000300,000 Vacancy 1 2% 1 2% 8% Lower LowerPrime Prime 250,000 Melbourne CBD: DRateeVacancym a(RHS)nd, Supply & Vacancy (4Q19) 1 0% 8% Melbourne CBD: Upper & Lower Prime Yields (4Q19) 250,000 Rate (RHS) 1 0% 7%8% 250,000250,000 Rate (RHS) 1 0% 1 0% 7% 9% 300,000200,000 20y Avg. 7.2% 18% 2% 7% 7% Lower Prime 200,000mm Vacancy 20y Avg. 7.2% 8% 6%
200,000uu 8% mm 200,000 20y Avg. 7.2% 8% 6% 8% mm nn
uu 150,000 6% 250,000mm Rate (RHS) 1 0% 6%
uu 6%
nn Upper Prime nn 150,000uu 6% 5% 5.13% nn aa dd
nn 150,000 6% 7% Upper Prime nn
150,000 6% 5% ll 5.13%
nn Upper Prime aa rr dd nn 100,000 4% Upper Prime 5.13% ee 20y Avg. 7.2% 5% 200,000 8% ll aa 4.38%5.13% dd ii 5% ee aa rr
dd
100,000 4% ll
3.4% ee
mm 4% ll YY 4.38% pp rr ii ee 100,000 4% 6% rr ee
uu 100,000 4% 4.38%
3.4% ee ii 4% ee YY 4.38% pp ii ee 3.4% 5 0,0 00 2%
nn 4% YY
pp 150,000 3.4% 6% mm 4% YY pp
nn Upper Prime 5 0,0 00 2% 3% qq mm 5 0,0 00 21,5172% 5% 5.13% aa dd ss mm 5 0,0 00 2% 3%
qq ll mm 21,517 3% rr 0 0% 10y Bond Rate qq ss 100,000 21,517 4% 3% ee qq 21,517 4.38% ii ee ss 0 0% 2% 10y Bond Rate ss 3.4% 4% YY pp 0 0 5,7130% 0% 2% 10y Bond Rate Net Supply 10y Bond Rate -55 0,0 0,0 00 00 Net Absorption 5,713 2%-2% 2% 2% 1.20% -5 0,0 00mm Net Absorption Net Supply 5,713-2% 3%1% -5 0,0 00qq -5 0,0 00 Net AbsorptionNet Absorption(LHS) Net(LHS) Supply 21,517-2% -2% 1% 1.20% -100,000ss 0 (LHS) (LHS) 0%-4% 1% 1% 10y Bond Rate 1.20% -100,000 (LHS) (LHS) (LHS) (LHS) -4% 2%0% -100,000-100,000 5,713-4% -4% 0% -5 0,0 00 Net Absorption Net Supply -2% 0% 0% 1% 1.20% (LHS) (LHS) D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 -100,000 -4% D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 0% D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 JLL Research Q4 2019, GPT Research. * The effective rent is calculated by deducting from the face rental the amortised present value of incentives over an assumed 10 year lease term JLL Research1 Change Q4 2019, during GPT the Research. past 12 months * The effective rent is calculated by deducting from the face rental the amortised present value of incentives over an assumed 10 year lease term
JLL Research Q4 2019, D ecGPT -04 Research.D ec -05 D ec -06 D ec -07 D ec -08 * TheD ec -09 effectiveD ec -10 D ec -11rent Dis ec -12 calculatedD ec -13 D ec -14 by deductingD ec -15 D ec -16 fromD ec -17 theD ec -18 face D ecrental -19 D ec -20the amortisedD ec -21 present value of incentives over an assumed 10 year lease term 1 JLL Research Q4 2019, GPT Research. * The effective rent is calculated by deducting from the face rental the amortised present value of incentives over an assumed 10 year lease term D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 Change during the past 12 months D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 1
Change during1 Change the during past 12 the months past 12 months For personal use only use personal For JLL Research Q4 2019, GPT Research. * The effective rent is calculated by deducting from the face rental the amortised present value of incentives over an assumed 10 year lease term 1 Change during the past 12 months OfficeOffice – – BrisbaneBrisbane CBD CBD OfficeOffice ––BrisbaneBrisbane CBDCBD 3 Brisbane CBD: Rents and Incentives (4Q19) Brisbane CBD: Rents and Incentives (4Q19) • Brisbane’s vacancy rate reduced during the year to $8 00 4 5% OfficeBrisbane’s –vacancyBrisbane rate reduced CBDduring the year to 38.3% 3 • $8 00 Gross Incentive 4 5% 3 Brisbane CBD: Rents and Incentives (4Q19) 38.3% 1 11.7%, down from 13.2%, driven by a solid level of $7 00 Brisbane CBD: Rents and InGrosscenti vIncentivees (4Q1 9) -15bps 4 0% 11.7%,Brisbane’s down vacancy from 13.2% rate reduced, driven by during a solid the level year ofto $7 00 Net Face (RHS) -15bps1 4 0% • Brisbane’s vacancy rate reduced during the year to $8 00 Net Face (RHS) 38.3% 4 5% • demand and a low level of net supply. 300 George $8 00 Rent (LHS) Gross Incentive 38.3% 34 5% 5% 3 $6 00 $615 11.7%,demand down and afrom low 13.2%level of, driven net supply. by a solid 300 Georgelevel of $6 00 Rent (LHS) Gross Incentive -15bps$615 1 43 0%5% 11.7%, down from 13.2%, driven by a solid level of $7 00 Brisbane CBD: RenNetts aFacend Incenti(RHS)ves (4Q19) -15bps1 1 34 0% 0% Street completed in 4Q19 adding 47,700 sqm of new $7 00 Net Face (RHS) +2.3%1 • demandStreetBrisbane’s completed and vacancy a low in level rate 4Q19 ofreduced adding net supply. during47,700 300 thesqm George year of netow $8$5 00 Rent (LHS) +2.3% 34 5%0% demand and a low level of net supply. 300 George $6$5 00 Rent (LHS) Gross Incentive 38.3%$615 23 5% 5%
aa $6 00 $615 supply, however, a large amount of this was offset by 11 2 5%
11.7%, down from 13.2%, driven by a solid level of pp $4 00 4 0% aa $7 00 -15bps 3 0% Streetsupply, completed however, a in large 4Q19 amount adding of47,700 this wassqm offset of ne wby Net Face (RHS) +2.3% 1 pp $5$4 00 +2.3% 3 0%
2 0% Street completed in 4Q19 adding 47,700 sqm of new mm $5 00 2 0%
building withdrawals. qq Rent (LHS) 3 5% demand and a low level of net supply. 300 George mm $6$3 00 $280 2 5% aa
ss $615 building withdrawals. qq 2 5% supply, however, a large amount of this was offset by // $3 00 $280 1 5% aa pp $4 00 ss 1 supply, however, a large amount of this was offset by Net Effect ive 1 $$ // pp $4 00 +2.3%+4.3% 31 0%5% Street completed in 4Q19 adding 47,700 sqm of new Net Effect ive 1 2 0% $$ mm $5$2 00 Rent (LHS) * +4.3% 12 0% 0% mm • buildingEffective withdrawals. rental growth was solid in the past 12 months, qq $3$2 00 $280 ss Effectivebuilding rentalwithdrawals. growth was solid in the past 12 months, qq $3 00 Rent (LHS) * $280 21 5%0% • // 1 5% aa supply, however, a large amount of this was offset by $1ss 00 Net Effect ive 1 //
$$ 1 5% pp $4 00 +4.3% 5% with an increase of 4.3% due to face rental growth and Net Effect ive 1
$1$$ 00 with an increase of 4.3% due to face rental growth and $2 00 +4.3% 125% 0% mm Rent (LHS) * • Effective rental growth was solid in the past 12 months, $2 00 1 0% • buildingEffective withdrawals. rental growth was solid in the past 12 months, qq $3 00$0 Rent (LHS) * $280 0% a small contraction in incentives. ss $0 0%
// $1 00 1 5% a small contraction in incentives. Net Effect ive 1 5% with an increase of 4.3% due to face rental growth and $$ $1 00 +4.3% 5% with an increase of 4.3% due to face rental growth and $2 00 Effective rental growth was solid in the past 12 months, $0 Rent (LHS) * 0%1 0% • a small contraction in incentives. $0 0% • Primea small yields contraction have firmedin incentives.by 38 bps during 2019. D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 • Primewith an yields increase have of firmed 4.3% dueby 38 to bpsface during rental 2019.growth and $1 00 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 5% $0 0% D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 • Primea small yields Bcontractionrisba nhavee CBD firmed: Dinem incentives.andby, Su 38ppl ybps & V aduringcancy (4 Q2019.19) D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 • Prime yieldsBrisban ehave CBD: firmedDemand,by Su p38ply bps& Va cduringancy (4Q 12019.9) D ec -04 D ec -05BrisD ec -06 banD ec -07 e CD ec -08BD:D ec -09 UpD ecp -10 er D ec& -11 LD eco -12 wer Prime Yields (4Q19) Vacancy Brisbane CBD: Upper & Lower Prime Yields (4Q19) 250,000 Vacancy 2 0% 9% 250,000 Brisbane CBD: Demand, Supply & VacRateanc (RHS)y (4Q19) 2 0% 9% D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 •200,000Prime yieldsBrisba havene CB Dfirmed: Demandby, S u38pp lbpsy & V duringaRatecan c(RHS)y (4 2019.Q19) 1 6% 8% D ec -04 D ec -05 BBrrDi ecs -06 isbbaDa ecn -07 nee CD ecC -08 BBDD ec: -09 :U UpD ecp -10 ppeerD ecr -11 & & L D ecL -12 oowweerr P Prrimimee Y Yieieldldss ( 4(4QQ1199)) 250,000200,000 Vacancy 21 0%6% 8%9% Lower Prime 250,000 Vacancy 2 0% 9% Lower Prime 150,000 Rate (RHS) 1 2% 7% Brisbane CBD: Demand, Supply & VacRateancy (RHS) (4Q19) 11.7% 7%8% 200,000150,000 20y Avg. 8.9% 11.7% 1 6%2% 8% Brisbane CBD: Upper & Lower Prime Yields (4Q19) 6.25% mm 200,000 20y Avg.Vacancy 8.9% 1 6% 6% Lower Prime 6.25%
uu 100,000 8% 9% mm 250,000 2 0% 6%7% UpperLower Prime Prime nn uu 150,000100,000 44,94711.7% 18% 2% 7% Upper Prime
nn Rate (RHS) nn 150,000 11.7% 1 2% 5% 5.00% 20y Avg. 8.9% dd
aa 44,947 ll nn 8% 6.25% 200,0005 0,0 00 20y Avg. 8.9% 14% 6% 5% 5.00% dd mm 6% ee aa rr
ll 6.25% ii 5 0,0 00 4% mm uu 100,000 12,310 8% 6% Lower Prime ee ee
rr Upper Prime
YY 4% ii uu nn 100,000 12,310 8% pp
ee 7% Upper Prime
44,947 YY 4% nn nn 150,0000 11.7% 10% 2% 5% pp 5.00% 44,947 dd
aa nn 0 0% ll 5% mm
5 0,0 00 4% 5.00% 20y Avg. 8.9% dd 3% aa ee ll
rr 6.25% qq
mm 5 0,0 00 4% ii mm 12,310 3%6% ee ee rr ss qq YY 4% -5 0,0 00 -4% ii uu 100,000 12,310 8% 10y Bond Rate ee pp Upper Prime ss
YY 4%
nn -5 0,0 000 0%-4% 2% pp Net 10y Bond Rate
44,947 nn 0 0% 5%
mm Net Supply 2% 5.00%
Net dd
aa 3% -100,000 -8% ll
mm qq 5 0,0 00 Absorption Net Supply 4% 3% ee
rr 1.20% ss qq -100,000-5 0,0 00 Absorption (LHS) 12,310 -4%-8% ii 1%
ee 10y Bond Rate
ss 1.20% -5 0,0 00 (LHS) (LHS) -4% YY 1%4% pp Net 2% 10y Bond Rate -150,000 0 0%-1 2% -150,000 (LHS)Net Net Supply -1 2% 0%2% -100,000mm Absorption Net Supply -8% 0%3% 1.20% qq -100,000 Absorption (LHS) -8% 1% ss -5 0,0 00 (LHS) -4% 1% 1.20% -150,000 (LHS) -1 2% 10y Bond Rate Net(LHS) 2%0%
-150,000 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 -1 2% Net Supply 0% D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 -100,000 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13AbsorptionD ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 -8% 1.20% D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 (LHS) 1% D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 -150,000 (LHS) -1 2%
JLL Research D ecQ4 -04 2019,D ec -05 GPTD ec -06 Research.D ec -07 D ec -08 D ec -09 D ec -10* TheD ec -11effectiveD ec -12 rentD ec -13 is calculatedD ec -14 D ec -15 byD ec -16 deductingD ec -17 Dfrom ec -18 theD ec -19 faceD ec -20 rentalD ec -21 the amortised present value of incentives over an assumed 10 year lease term
For personal use only use personal For 0% D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 JLL1 Change Research during Q4 the 2019, past GPT 12 monthsResearch. * The effective rent is calculated by deducting from the face rental the amortised present value of incentivesD ec -04 D ecover -05 anD ec -06 assumedD ec -07 10D ec -08 year leaseD ec -09 termD ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 1 Change during the past 12 months D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 JLL Research Q4 2019, GPT Research. * The effective rent is calculated by deducting from the face rental the amortised present value of incentives over an assumed 10 year lease term
JLL ResearchD ec -04 Q4 2019,D ec -05 GPTD ec -06 Research.D ec -07 D ec -08 D ec -09 D ec -10 * TheD ec -11 effectiveD ec -12 rentD ec -13 isD eccalculated -14 D ec -15 byD ec -16 deductingD ec -17 D ec -18fromD ecthe -19 faceD ec -20 rentalD ec -21 the amortised present value of incentives over an assumed 10 year lease term 1 Change during the past 12 months D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 1 Change during the past 12 months D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12
JLL Research Q4 2019, GPT Research. * The effective rent is calculated by deducting from the face rental the amortised present value of incentives over an assumed 10 year lease term 1 Change during the past 12 months
OFFICE PORTFOLIO 76 OFFICE PORTFOLIO 77
OfficeOffice – –ParramattaParramatta OfficeOffice ––ParramattaParramatta 4 Office – Parramatta Parramatta: Rents and Incentives (4Q19) 4 Parramatta: Rents and Incentives (4Q19) 44 • Parramatta’s vacancy rate remains low at 5.4%, with $6 00 PPararrarmamatattat:a :R Renentst sa nandd In Incecnentitvievse s( 4(Q4Q191)9) 3 0% Parramatta’s vacancy rate remains low at 5.4%, with $6 00 $549 3 0% •• Parramatta’sprimeParramatta’s vacancy vacancy vacancy only 0.5%, rate rate afterremains remains the deliverylow low at at 5.4%, 5.4%, of with with $6$6$5 00 0050 3 0%3 0% $5 50 $54+6.1%9 1 4 prime vacancy only 0.5%, after the delivery of $5$5 50 5000 Parramatta: RentsGross and IncentiveIncentiv es (4Q19) $54$5499 2 5% primeprime vacancy vacancy only only 0.5%, 0.5%, after after the the delivery delivery of of +6.1%1 4 Parramatta Square in 4Q19. The 62,000 sqm building $5 00 Gross (RHS)Incentive +6.1%+6.1%1 1 2 5% • Parramatta’s vacancy rate remains low at 5.4%, with $5$6$5$4 00 00 0050 GrossGross Incentive Incentive $414 23 5%2 0% 5% 4 Parramatta Square in 4Q19. The 62,000 sqm building (RHS) 4was4 Parramatta Parramatta 100% leased Square Square to government.in in 4Q19. 4Q19. The The Supply62,000 62,000 sqmcurrently sqm building building $4 50 $549 1 $4aa $5$4 50 50 5000 (RHS)(RHS) $41+64.5% 2 0%
prime vacancy only 0.5%, after the delivery of pp $41$4144 was 100% leased to government. Supply currently 1 1 waswas 100% 100% leased leased to to government. government. Supply Supplycurrentlycurrently aa $4 00 Gross Incentive +6+6.1%.5%1 1 2 0%
under construction is substantially pre-committed. mm $5$3 00 50 2 5% aa aa pp $4$4 00 00 +6+6.5%.5% 2 0%2 0% 16.7% qq 4 Parramatta Square in 4Q19. The 62,000 sqm building pp pp Net Face ss under construction is substantially pre-committed. mm $3 50 (RHS) 1 // $4$3 50 00 16.7% 1 5% mm mm underunder construction construction is is substantially substantially pre pre--committed.committed. qq $3$3 50 50 $-0bps414 $$ NetRent Face (LHS) 16.7%16.7% ss qq qq 1 wasParramatta 100% leased experienced to government. solid growth Supply in facecurrently and // $3 00 NetNet Face Face 1 1 5% • ss ss -0bps aa $4$2 00 50 +6.5%1 1 2 0% // // $$ $3$3 00 00 Rent (LHS) -0bps-0bps 1 5%1 5% pp $$ $$ • Parramatta experienced solid growth in face and RentRent (LHS) (LHS) ParramattaeffectiveParramatta rents experienced experienced of 6.1% and solid solid 6.5% growth growth respectively in in face face and andduring $2$2 50 00 1 0% •• under construction is substantially pre-committed. mm $2$3$2 50 50 50 16.7% qq NetNet EffectFace ive effective rents of 6.1% and 6.5% respectively during ss $2 00 1 1 0% effective2019.effective Incentives rents rents of of 6.1%were 6.1% andstable and 6.5% 6.5% at therespectively respectively low level during during // $2$3$2$1 00 00 0050 Net Effect ive -0bps 11 0%1 5% 0% $$ NetRentNetRent Effect Effect (LHS) (LHS) ive ive * • 2019.Parramatta Incentives experienced were stable solid at growththe low in level face and $1$2$1 50 50 00 Rent (LHS) * 5% 2019.of2019. 16.7%. Incentives Incentives were were stable stable at at the the low low level level $1$1 50 50 RentRent (LHS) (LHS) * * $1 00 5% ofeffective 16.7%. rents of 6.1% and 6.5% respectively during $1$2$1 00 00 00 5%15% 0% ofof 16.7%. 16.7%. Net Effect ive $1 50 • 2019.Prime Incentives yields have were firmed stableby 12at thebps lowduring level 2019. D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ecRent -12 D ec -13 (LHS)D ec -14 * D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21
• Prime yields have firmed by 12 bps during 2019. $1 00 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 5% •• PrimeofPrime 16.7%. yields yields have have firmed firmedbyby 12 12 bps bps during during 2019. 2019. D ec -04 D ec -04 D ec -05 D ec -05 D ec -06 D ec -06 D ec -07 D ec -07 D ec -08 D ec -08 D ec -09 D ec -09 D ec -10 D ec -10 D ec -11 D ec -11 D ec -12 D ec -12 D ec -13 D ec -13 D ec -14 D ec -14 D ec -15 D ec -15 D ec -16 D ec -16 D ec -17 D ec -17 D ec -18 D ec -18 D ec -19 D ec -19 D ec -20 D ec -20 D ec -21 D ec -21 Parramatta: Demand, Supply & Vacancy (4Q19) Parramatta: Upper & Lower Prime Yields (4Q19)
• Prime yields have firmed by 12 bps during 2019. 1 0% D ec -04 D ec -05 PaD ec -06rraDm ec -07 atD ect -08 a: UD ec -09 ppDe ec -10 r &D ec -11 LoDw ec -12 erD ec -13Pri Dm ec -14 e DY ec -15 ieldD ec -16 s (4D ec -17 Q19D ec -18 ) D ec -19 D ec -20 D ec -21 7 0,0 00 PPararrarmamatattat:a :D Dememanandd, S, Suuppplyl y& & V Vacaacnancyc y( 4(Q4Q191)9) PPararrarmamatattat:a :U Upppere r& & L Lowowere rP Prirmime eY iYeiledlds s( 4(Q4Q191)9) 7 0,0 00 Net Supply 1 0%9% Lower Prime 7 0,067 0,0 00 00 61,220 12.0% 1 0%1 0% Vacancy Net (LHS)Supply 9% Lower Prime 6 0,0 00 NetNet Supply Supply 61,220 12.0% 9%9%8% LowerLower Prime Prime 6 0,056 0,0 00 00 Parramatta: VacancyRateDem (RHS)an d, Supply & Vaca(LHS)ncy (4Q161,220961,220) 12.0%12.0% Parramatta: Upper & Lower Prime Yields (4Q19) VacancyVacancy (LHS)(LHS) 46,854 8% 5 0,0 00 Rate (RHS) 18% 0%8%7% 57 0,045 0,0 0,0 00 00 00 RateRate (RHS) (RHS) 20y Avg. 7.5% 8 .0% mm Net Supply 46,854 7% Lower Prime
uu 46,85446,854 4 0,0 00 20y Avg. 7.5% 61,220 8 .0% 7%9%7%6% 6.13% nn 6 0,0 00 12.0% mm 4 0,034 0,0 00 00 Vacancy 20y20y Avg. Avg. 7.5% 7.5%(LHS) 8 .0%8 .0% dd nn mm mm uu 6.13% 5.4% 6%ll
aa 8% uu uu nn 5% Upper Prime 6.13%6.13%
Net ee 5.00%
6%6%
3 0,0 00 ii
5 0,0 00 dd nn nn
nn Rate (RHS) rr
2 0,0 00 4 .0% ll 3 0,03 0,0 00 00 5.4% YY dd dd aa nn nn ee 46,854 5% Upper Prime
Net ee 5.00% ll ll Absorption 5.4%5.4% 7%4% ii aa aa pp 5%5% UpperUpper Prime Prime rr ee NetNet ee 5.00%5.00%
2 0,0 00 20y Avg. 7.5% 4 .0% YY ii 4 0,0 00 8 .0% ii ee rr rr mm 2 0,012 0,0 00 00 Absorption 4 .0%4 .0% (LHS) YY 4%YY mm ee ee pp uu 6% 6.13% AbsorptionAbsorption 4%4%3% qq pp pp nn
1 0,0 00
ss 3 0,0 00 (LHS) dd mm nn 0 0 .0% 1 0,01 0,0 00 00 (LHS)(LHS) 5.4% ll 3% mm mm qq aa 5%2% Upper Prime
Net ee 5.00% 3%3% ss ii qq qq rr 2 0,0 000 04 .0% .0% YY ss ss ee -1 0,00 000 Absorption 0 .0%0 .0% 2%4% 10y Bond Rate 1.20% pp 2%2%1% -1 1 0,0 0,0 00 00 (LHS) 10y Bond Rate 1.20% -1mm -2-1 0,0 0,0 00 00 -4 .0% 1%3%0% 10y10y Bond Bond Rate Rate 1.20%1.20% qq 1%1% -2ss 0,0 000 -40 .0% 0% -2-2 0,0 0,0 00 00 -4-4 .0% .0% 0%2%0% -1 0,0 00 10y Bond Rate
D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 1% 1.20% D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12
-2 0,0 00 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21 -4 .0% D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12
D ec -08 D ec -08 D ec -09 D ec -09 D ec -10 D ec -10 D ec -11 D ec -11 D ec -12 D ec -12 D ec -13 D ec -13 D ec -14 D ec -14 D ec -15 D ec -15 D ec -16 D ec -16 D ec -17 D ec -17 D ec -18 D ec -18 D ec -19 D ec -19 D ec -20 D ec -20 D ec -21 D ec -21 0% D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 JLL Research Q4 2019, GPT Research. * The effective rent is calculated by deducting from the face rental the amortised present value of incentivesD ec -04 D ec -04 D ec -05 overD ec -05 Dan ec -06 D ec -06assumedD ec -07 D ec -07 10D ec -08 D ecyear -08 D eclease -09 D ec -09 Dterm ec -10 D ec -10 D ec -11 D ec -11 D ec -12 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 1 JLLChange Research during Q4 2019, the past GPT 12 Research. months * The effective rent is calculated by deducting from the face rental the amortised present value of incentives over an assumed 10 year lease term 1JLLChangeJLL Research Research during Q4 Q4the 2019, 2019, past GPT 12 GPT months Research. Research. * The * The effective effective rent rent is iscalculated calculated by by deducting deducting from from the the face face rental rental the theamortisedamortised present present value value of ofincentives incentives over over an an assumed assumed 10 10 year year lease lease term term
1 Change1 Change during duringD ec -08the the past pastD ec -09 12 12 months monthsD ec -10 D ec -11 D ec -12 D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -21
D ec -13 D ec -14 D ec -15 D ec -16 D ec -17 D ec -18 D ec -19 D ec -20 D ec -04 D ec -05 D ec -06 D ec -07 D ec -08 D ec -09 D ec -10 D ec -11 D ec -12 For personal use only use personal For JLL Research Q4 2019, GPT Research. * The effective rent is calculated by deducting from the face rental the amortised present value of incentives over an assumed 10 year lease term 1 Change during the past 12 months Location Map – Darling Park & Cockle Bay
Barangaroo
Pyrmont Street Pitt Wynyard
Western Distributor Macquarie Street Macquarie
York Street Kent Street Martin Place Street Elizabeth
Pyrmont Bay Park
Clarence Street King Street
George Street
Sussex Street Pitt Street Mall Pyrmont Bridge Hyde Market Street Street Castlereagh Park Darling Harbour Cockle Bay Wharf Train
Park Street Ferry Town Harbour Street Hall Light rail Bathurst Street Sydney Metro ICC Sydney (expected For personal use only use personal For Convention & Tumbalong future station Exhibiton Centre Park locations) Liverpool Street Pedestrian bridge
OFFICE PORTFOLIO 78
OFFICE PORTFOLIO 79 For personal use only use personal For
2 Park Street and 161 Castlereagh Street, Sydney Logistics Portfolio
Annual Result 2019 For personal use only use personal For Logistics Portfolio Overview
GPT’s logistics portfolio consists of ownership in 35 high quality investment assets located across Australia’s Eastern Seaboard.
New South Wales Victoria • Rosehill Business Park, Camellia • Citiwest Industrial Estate, Altona North • 10 Interchange Drive, Eastern Creek • Citiport Business Park, Port Melbourne • 16-34 Templar Road, Erskine Park • Austrak Business Park, Somerton (50%) • 36-52 Templar Road, Erskine Park • Sunshine Business Estate, Sunshine • 54-70 Templar Road, Erskine Park NT • 396 Mount Derrimut Road, Derrimut QLD • 67-75 Templar Road, Erskine Park • 29-55 Lockwood Road, Erskine Park • 399 Boundary Road, Truganina Brisbane • 21 Shiny Drive, Truganina WA • 57-87 Lockwood Road, Erskine Park 3 • 89-99 Lockwood Road, Erskine Park SA Queensland • 407 Pembroke Road, Minto (50%) • 4 Holker Street, Newington • 16-28 Quarry Road, Yatala NSW Sydney • 83 Derby Street, Silverwater • 59 Forest Way, Karawatha 25 • Sydney Olympic Park Town Centre1 • 55 Whitelaw Place, Wacol VIC • Quad 1, Sydney Olympic Park 7 Melbourne • Quad 4, Sydney Olympic Park l Number of investment assets in each state • 372-374 Victoria Street, Wetherill Park TAS • 38 Pine Road, Yennora • 18-24 Abbott Road, Seven Hills • 1A Huntingwood Drive, Huntingwood • 1B Huntingwood Drive, Huntingwood • 54 Eastern Creek Drive, Eastern Creek
For personal use only use personal For • 50 Old Wallgrove Road, Eastern Creek • 104 Vanessa Street, Kingsgrove • 64 Biloela Street, Villawood 1. Includes properties at 3, 5, 7 Figtree Drive and 6, 8 Herb Elliot Drive, Sydney Olympic Park. • 30-32 Bessemer Street, Blacktown Note: All totals and averages are based on GPT’s balance sheet portfolio.
LOGISTICS PORTFOLIO 80 LOGISTICS PORTFOLIO 81 Logistics Portfolio Summary
The GPT logistics portfolio has exposure to high quality assets with a long WALE.
Top Ten Tenants1 Geographic Weighting2 As at 31 December 2019 As at 31 December 2019
Rand Coles Group IVE Group Toll Transport TNT Australia
NSW 68% 13.6% 7.6% 5.9% 4.8% 4.8%
QLD 8%
4.2% 3.5% 3.2% 3.0% 2.8% VIC 24%
Pact Group Australian Goodman Schenker ACR Supply Pharmaceutical Fielder Australia Partners Industries
1. Based on net rent. For personal use only use personal For 2. Excludes assets under development. Lease Expiry Profile
Lease Expiry Profile (by Income) 34%
15%
11% 11% 9% 7% 6% 5% 3%
2020 2021 2022 2023 2024 2025 2026 2027 2028+
Note: Includes signed leases. For personal use only use personal For
LOGISTICS PORTFOLIO 82 LOGISTICS PORTFOLIO 83 Income and Fair Value Schedule
Income 12 months to 31 Dec ($m) Fair Value Reconciliation Fair Value Development & Maintenance Lease Acquisitions Net Other Fair Value % of 31 Dec 18 Other Capex Capex Incentives & Sales Revaluations Adjustments 31 Dec 19 Portfolio 2018 2019 Variance ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) (%) GPT Portfolio Rosehill Business Park, Camellia 5.9 6.6 0.7 86.0 0.1 0.1 1.3 – 4.0 – 91.5 3.8 10 Interchange Drive, Eastern Creek 2.7 3.7 1.0 33.3 – 0.2 3.7 – 2.3 – 39.5 1.6 16-34 Templar Road, Erskine Park 3.8 4.0 0.2 65.0 – – – – 4.5 – 69.5 2.9 36-52 Templar Road, Erskine Park 5.9 6.1 0.2 107.0 – – – – 5.0 – 112.0 4.6 54-70 Templar Road, Erskine Park 10.6 10.9 0.3 152.0 – – – – 10.0 – 162.0 6.6 67-75 Templar Road, Erskine Park 1.9 2.0 0.1 26.0 – – – – – – 26.0 1.1 29-55 Lockwood Road, Erskine Park 5.7 5.9 0.2 104.5 – 0.1 – – 8.9 – 113.5 4.7 57-87 & 89-99 Lockwood Road, Erskine Park – 2.7 2.7 – – – – 113.0 (6.0) – 107.0 4.4 407 Pembroke Road, Minto 2.6 2.7 0.1 30.5 – – 0.9 – 0.6 – 32.0 1.3 4 Holker Street, Newington 2.2 2.3 0.1 35.5 – 0.1 – – 2.1 – 37.7 1.5 83 Derby Street, Silverwater 2.3 2.3 0.0 40.0 – 0.3 – – 1.0 – 41.3 1.7 Sydney Olympic Park Town Centre 5.6 5.5 (0.1) 121.5 1.6 0.2 0.4 – 13.8 – 137.5 5.6 Quad 1, Sydney Olympic Park 2.0 2.0 0.0 28.0 – 0.4 0.2 – 0.4 – 29.0 1.2 Quad 4, Sydney Olympic Park 3.4 3.5 0.1 58.0 0.1 0.4 – – 4.3 – 62.8 2.6 372-374 Victoria Street, Wetherill Park 2.0 2.1 0.1 26.5 – 1.1 – – 3.7 – 31.3 1.3 38 Pine Road, Yennora 3.9 3.8 (0.1) 61.0 – 0.1 3.1 – 5.7 (2.9) 67.0 2.7 18-24 Abbott Road, Seven Hills 2.2 2.2 0.0 39.3 – – – – 2.3 – 41.6 1.7 1A Huntingwood Drive, Huntingwood 2.4 2.5 0.1 46.0 (0.1) 0.1 – – 0.8 – 46.8 1.9 1B Huntingwood Drive, Huntingwood 0.6 1.4 0.8 25.5 – – – – 1.1 – 26.6 1.1 54 Eastern Creek Drive, Eastern Creek 2.6 2.9 0.3 51.8 (0.1) – – – 0.3 – 52.0 2.1
For personal use only use personal For 50 Old Wallgrove Road, Eastern Creek – – 3.3 3.3 60.2 6.5 – – – 3.6 – 70.3 2.9 Completed January 2019 104 Vanessa Street, Kingsgrove – 1.4 1.4 – – – – 25.4 (1.4) – 24.0 1.0 64 Biloela Street, Villawood – 0.7 0.7 – – – – 41.7 (2.2) – 39.5 1.6 Income 12 months to 31 Dec ($m) Fair Value Reconciliation Fair Value Development & Maintenance Lease Acquisitions Net Other Fair Value % of 31 Dec 18 Other Capex Capex Incentives & Sales Revaluations Adjustments 31 Dec 19 Portfolio 2018 2019 Variance ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) (%) 30-32 Bessemer Street, Blacktown – 1.4 1.4 – – 0.1 – 43.8 (2.4) – 41.5 1.7 Citiwest Industrial Estate, Altona North 6.2 5.9 (0.3) 90.0 – 2.0 1.2 – 9.4 – 102.6 4.2 Citiport Business Park, Port Melbourne 5.5 5.6 0.1 82.5 – 0.8 1.2 – 6.3 – 90.8 3.7 Austrak Business Park, Somerton 11.7 11.8 0.1 182.4 – – 0.1 – 12.7 – 195.2 8.0 Sunshine Business Estate, Sunshine 4.3 4.7 0.4 78.0 – 0.1 – – 1.0 – 79.1 3.2 396 Mount Derrimut Road, Derrimut 0.1 0.6 0.5 12.4 – 0.1 – – 0.4 – 12.9 0.5 399 Boundary Road, Truganina 0.0 1.0 1.0 15.6 1.1 – – – 1.7 – 18.4 0.8 21 Shiny Drive, Truganina – – 0.1 0.1 11.0 19.1 – – – 4.6 – 34.7 1.4 Completed December 2019 16-28 Quarry Road, Yatala 2.1 2.1 0.0 44.8 – 0.5 – – 0.4 – 45.7 1.9 59 Forest Way, Karawatha 7.3 7.5 0.2 114.0 – 0.3 – – 10.7 – 125.0 5.1 55 Whitelaw Place, Wacol 0.9 0.9 0.0 16.5 – – – – 1.0 – 17.5 0.7 Assets Under Development 38A Pine Road, Yennora – Under development – – – – 5.9 – – – 1.9 2.9 10.7 0.4 128 Andrews Road, Penrith – Under development – – – – 6.3 – – 18.9 (1.1) – 24.1 1.0 42 Cox Place, Glendenning – Land – – – – 0.1 – – 17.6 (1.0) – 16.7 0.7 407 Pembroke Road, Minto – Land – – – 5.8 – – – – – – 5.8 0.2 2,6 & 10 Prosperity Street, Truganina – Land – – – 10.0 0.7 – – – – – 10.7 0.4 66 & 67 Niton Drive, Truganina – Land – – – – 0.2 – – 36.0 – – 36.2 1.5 Austrak Business Park, Somerton – Land – – – 32.8 1.1 – – – 4.9 – 38.8 1.6 2 Ironbark Close, Wembley Business Park, – – – – 22.6 – – – 1.8 11.9 36.3 1.5 Berrinba – Under development
For personal use only use personal For 30 Ironbark Close, Wembley Business Park, – – – – 7.6 – – – 0.3 8.2 16.1 0.7 Berrinba – Under development Stage 3, Wembley Business Park, – – – – – (0.3) 19.5 19.2 0.8 Berrinba – Land Total Logistics Portfolio 106.4 122.1 15.7 1,893.4 72.8 7.0 12.1 296.4 117.1 39.6 2,438.4 100.0
LOGISTICS PORTFOLIO 84 LOGISTICS PORTFOLIO 85 Logistics Portfolio Summary
Logistics Occupancy GLA (100% 31 Dec 19 31 Dec 19 Inc. Signed Inc. WALE Ownership Interest) Fair Value Cap Rate Actual Leases Heads of by Income State (%) (sqm) ($m) (%) (%) (%) Agreement (%) (Years) GPT Portfolio Rosehill Business Park, Camellia NSW 100 41,900 91.5 5.50 100.0 100.0 100.0 3.2 10 Interchange Drive, Eastern Creek NSW 100 15,200 39.5 4.88 100.0 100.0 100.0 7.8 16-34 Templar Road, Erskine Park NSW 100 15,200 69.5 5.00 100.0 100.0 100.0 9.5 36-52 Templar Road, Erskine Park NSW 100 24,500 112.0 5.25 100.0 100.0 100.0 15.1 54-70 Templar Road, Erskine Park NSW 100 21,000 162.0 5.25 100.0 100.0 100.0 15.5 67-75 Templar Road, Erskine Park NSW 100 12,700 26.0 5.50 100.0 100.0 100.0 2.1 29-55 Lockwood Road, Erskine Park NSW 100 32,200 113.5 4.75 100.0 100.0 100.0 10.0 57-87 & 89-99 Lockwood Road, Erskine Park NSW 100 37,700 107.0 4.63 100.0 100.0 100.0 10.2 407 Pembroke Road, Minto NSW 50 18,400 32.0 6.00 100.0 100.0 100.0 4.9 4 Holker Street, Newington NSW 100 7,400 37.7 5.75 100.0 100.0 100.0 6.7 83 Derby Street, Silverwater NSW 100 17,000 41.3 5.25 100.0 100.0 100.0 6.0 Sydney Olympic Park Town Centre1 NSW 100 26,500 137.5 N/A 100.0 100.0 100.0 2.2 Quad 1, Sydney Olympic Park NSW 100 4,800 29.0 6.25 100.0 100.0 100.0 2.4 Quad 4, Sydney Olympic Park NSW 100 8,100 62.8 5.63 100.0 100.0 100.0 10.2 372-374 Victoria Street, Wetherill Park NSW 100 20,500 31.3 5.75 100.0 100.0 100.0 5.2 38 Pine Road, Yennora NSW 100 33,800 67.0 5.50 100.0 100.0 100.0 3.2
18-24 Abbott Road, Seven Hills NSW 100 18,100 41.6 5.25 100.0 100.0 100.0 4.7 For personal use only use personal For 1A Huntingwood Drive, Huntingwood NSW 100 21,100 46.8 5.25 100.0 100.0 100.0 7.6 1B Huntingwood Drive, Huntingwood NSW 100 11,300 26.6 5.25 100.0 100.0 100.0 3.7 Logistics Occupancy GLA (100% 31 Dec 19 31 Dec 19 Inc. Signed Inc. WALE Ownership Interest) Fair Value Cap Rate Actual Leases Heads of by Income State (%) (sqm) ($m) (%) (%) (%) Agreement (%) (Years) 54 Eastern Creek Drive, Eastern Creek NSW 100 25,400 52.0 5.50 100.0 100.0 100.0 3.1 50 Old Wallgrove Road, Eastern Creek NSW 100 30,100 70.3 5.00 100.0 100.0 100.0 7.1 104 Vanessa Street, Kingsgrove NSW 100 7,100 24.0 5.25 100.0 100.0 100.0 4.5 64 Biloela Street, Villawood NSW 100 23,300 39.5 5.75 100.0 100.0 100.0 7.5 30-32 Bessemer Street, Blacktown NSW 100 20,100 41.5 5.50 100.0 100.0 100.0 6.0 Citiwest Industrial Estate, Altona North VIC 100 90,100 102.6 5.90 100.0 100.0 100.0 3.5 Citiport Business Park, Port Melbourne VIC 100 27,000 90.8 6.00 100.0 100.0 100.0 2.8 Austrak Business Park, Somerton VIC 50 210,000 195.2 5.25 80.6 80.6 80.6 6.1 Sunshine Business Estate, Sunshine VIC 100 52,800 79.1 5.75 100.0 100.0 100.0 6.9 396 Mount Derrimut Road, Derrimut VIC 100 10,700 12.9 6.25 100.0 100.0 100.0 2.0 399 Boundary Road, Truganina VIC 100 11,900 18.4 5.25 100.0 100.0 100.0 9.2 21 Shiny Drive, Truganina VIC 100 26,500 34.7 5.75 54.4 54.4 100.0 6.9 16-28 Quarry Road, Yatala QLD 100 40,800 45.7 7.00 55.1 55.1 55.1 3.2 59 Forest Way, Karawatha QLD 100 44,000 125.0 5.25 100.0 100.0 100.0 9.2 55 Whitelaw Place, Wacol QLD 100 5,600 17.5 5.50 100.0 100.0 100.0 12.4 Total 1,012,800 5.40 94.4 94.4 95.7 7.3
Note: Excludes assets under development.
1. Valued on ‘highest and best use’ basis following gazettal of Sydney Olympic Park Authority masterplan. For personal use only use personal For
LOGISTICS PORTFOLIO 86 LOGISTICS PORTFOLIO 87 Independent Valuation Summary
Ownership Valuation Capitalisation Rate State (%) Date Valuer ($m) (%)
GPT Portfolio Rosehill Business Park, Camellia NSW 100 31 Dec 2019 Knight Frank 91.5 5.50 10 Interchange Drive, Eastern Creek NSW 100 31 Dec 2019 Colliers 39.5 4.88 16-34 Templar Road, Erskine Park NSW 100 30 June 2019 Colliers 69.5 5.00 36-52 Templar Road, Erskine Park NSW 100 30 June 2019 Savills 112.0 5.25 54-70 Templar Road, Erskine Park NSW 100 30 June 2019 CBRE 162.0 5.25 67-75 Templar Road, Erskine Park NSW 100 30 June 2019 CBRE 26.0 5.50 29-55 Lockwood Road, Erskine Park NSW 100 30 June 2019 Colliers 113.5 4.75 57-87 & 89-99 Lockwood Road, Erskine Park NSW 100 24 May 2019 M3 107.0 4.63 407 Pembroke Road, Minto NSW 50 30 June 2019 CBRE 31.8 6.00 4 Holker Street, Newington NSW 100 31 Dec 2019 Knight Frank 37.7 5.75 83 Derby Street, Silverwater NSW 100 31 Dec 2019 JLL 41.3 5.25 Sydney Olympic Park Town Centre1 NSW 100 31 Dec 2019 Knight Frank 137.5 N/A Quad 1, Sydney Olympic Park NSW 100 30 June 2019 Colliers 28.8 6.25 Quad 4, Sydney Olympic Park NSW 100 30 June 2019 Colliers 62.5 5.63 372-374 Victoria Street, Wetherill Park NSW 100 31 Dec 2019 M3 31.3 5.75
38 Pine Road, Yennora NSW 100 31 Dec 2019 Colliers 67.0 5.50 For personal use only use personal For 18-24 Abbott Road, Seven Hills NSW 100 30 June 2019 Savills 41.6 5.25 1A Huntingwood Drive, Huntingwood NSW 100 30 June 2019 Savills 46.8 5.25 Ownership Valuation Capitalisation Rate State (%) Date Valuer ($m) (%)
1B Huntingwood Drive, Huntingwood NSW 100 30 June 2019 Savills 26.5 5.25 54 Eastern Creek Drive, Eastern Creek NSW 100 30 June 2019 CBRE 52.0 5.50 50 Old Wallgrove Road, Eastern Creek NSW 100 30 June 2019 Savills 70.4 5.00 104 Vanessa Street, Kingsgrove NSW 100 15 May 2019 M3 24.0 5.25 64 Biloela Street, Villawood NSW 100 15 May 2019 M3 39.5 5.75 30-32 Bessemer Street, Blacktown NSW 100 15 May 2019 M3 41.5 5.50 Citiwest Industrial Estate, Altona North VIC 100 31 Dec 2019 Savills 102.6 5.90 Citiport Business Park, Port Melbourne VIC 100 30 June 2019 JLL 89.5 6.00 Austrak Business Park, Somerton VIC 50 31 Dec 2019 CBRE 195.2 5.25 Sunshine Business Estate, Sunshine VIC 100 30 June 2019 CBRE 79.0 5.75 396 Mount Derrimut Road, Derrimut VIC 100 30 June 2019 Savills 12.9 6.25 399 Boundary Road, Truganina VIC 100 31 Dec 2019 Savills 18.4 5.25 21 Shiny Drive, Truganina VIC 100 31 Dec 2019 JLL 34.7 5.75 16-28 Quarry Road, Yatala QLD 100 30 June 2019 Savills 45.3 7.00 59 Forest Way, Karawatha QLD 100 31 Dec 2019 JLL 125.0 5.25 55 Whitelaw Place, Wacol QLD 100 31 Dec 2019 Savills 17.5 5.50
Note: Excludes assets under development.
1. Valued on ‘highest and best use’ basis following gazettal of Sydney Olympic Park Authority masterplan. For personal use only use personal For
LOGISTICS PORTFOLIO 88 LOGISTICS PORTFOLIO 89 Logistics – Sydney LogisticsLogistics - -SydneySydney 11 • • NewNew stock stock of of 476,500 476,500 sqm sqm was was delivered delivered to to market market in in 2019 2019 whichwhich is is in in line line with with the the 10 10 year year average. average. sqsmqm SySdyndenye Iyn Idnudsutsrtiraila Sl uSpupplpyl (y' 0('0000 0sq smqm) ) 1,2001,200 • • DemandDemand remains remains positive positive and and has has been been driven driven by by the the TransportTransport and and Logistics Logistics industries, industries, with with lower lower levels levels of of take take-- 1,0001,000 upup for for pre pre-lease-lease and and D&C D&C in in line line with with restricted restricted land land supply. supply. 8 008 00 1010 year year • • VacancyVacancy remains remains low, low, at at 2.6%. 2.6%. 6 006 00 averageaverage • • GrowingGrowing e e-commerce-commerce in in addition addition to to significant significant infrastructure infrastructure 4 004 00 investment,investment, especially especially in in Western Western Sydney, Sydney, is is expected expected to to 2 002 00 supportsupport demand. demand. • • AverageAverage prime prime yields yields have have firmed firmed by by 27 27 bps bps during during 2019. 2019. 20152015 20162016 20172017 20182018 20192019
sqsmqm SySdyndenye Iyn Idnudsutsrtiraila: lT: oTtoatla vla vcaacnatn st tsotcokc kb yb gy rgardaed e(' 0('0000 0s qsmqm) ) sqsmqm SySdyndenye Iyn Idnudsutsrtiraila Dl eDmemanadn d(' 0('0000 0sq smqm) ) 7 007 00 1,2001,200 AllAll Other Other Pre-LeasePre-Lease and and D&C D&C
6 006 00 PrimePrime 1,0001,000 1010 year year 5 005 00 SecondarySecondary averageaverage 8 008 00 4 004 00 6 006 00 3 003 00 4 004 00 2 002 00
1 001 00 2 002 00
20152015 20162016 20172017 20182018 20192019
Oct-11Oct-11Apr-12Apr-12Oct-12Oct-12Apr-13Apr-13Oct-13Oct-13Apr-14Apr-14Oct-14Oct-14Apr-15Apr-15Oct-15Oct-15Apr-16Apr-16Oct-16Oct-16Apr-17Apr-17Oct-17Oct-17Apr-18Apr-18Oct-18Oct-18Apr-19Apr-19Oct-19Oct-19
Source:Source: Knight Knight Frank Frank Research Research October October 2019, 2019, JLL JLL Research Research Q4 Q4 2019, 2019, GPT GPT Research Research For personal use only use personal For Logistics – Melbourne Logistics - Melbourne 2 •• Demand has significantly outstripped supply delivered in 2019, resulting in vacancy contracting to 1.8%, the lowest ssqqm Mellbourrne IIndussttrriiaall Suppllyy ((''000000 ssqm)) of the eastern seaboard cities. 1,2001,200 1,0001,000 •• Melbourne’s West has been the most active market, recording 24% of national take up, or ~495,000sqm during 88 00 00
2019. 66 00 00 1010 yearyear averageaverage •• The Victorian economy has benefited from above average 44 00 00 population growth and investment in infrastructure. 22 00 00 •• Average prime yields have firmed by 56 bps during 2019.. 20152015 20162016 20172017 20182018 20192019
ssqqm Mellbourrne IIndussttrriiall:: Tottall vvaccantt ssttocck byy grrade ((''000 sqm)) Mellbourrne IIndussttrriiaall Deemaand ((''000000 ssqm)) ssqqm 77 00 00 All Otherther Prree-L-Leeaassee aandnd D&C 1,2001,200 Prime 66 00 00 1,0001,000 Secondary 1010 yearyear 55 00 00 averageaverage 88 00 00 44 00 00 66 00 00 33 00 00 44 00 00 22 00 00
11 00 00 22 00 00
20152015 20162016 20172017 20182018 20192019
Oct-11Oct-11 Apr-12Apr-12 Oct-12Oct-12 Apr-13Apr-13 Oct-13Oct-13 Apr-14Apr-14 Oct-14Oct-14 Apr-15Apr-15 Oct-15Oct-15 Apr-16Apr-16 Oct-16Oct-16 Apr-17Apr-17 Oct-17Oct-17 Apr-18Apr-18 Oct-18Oct-18 Apr-19Apr-19 Oct-19Oct-19
Source:Source: KnightKnight FrankFrank ResearchResearch OctoberOctober 2019,2019, JLLJLL ResearchResearch Q4Q4 2019,2019, GPTGPT ResearchResearch For personal use only use personal For
LOGISTICS PORTFOLIO 90 LOGISTICS PORTFOLIO 91 Logistics – Brisbane LogisticsLogistics --BrisbaneBrisbane 33 •• TakeTake-up-up remains remains positive, positive, well well outpacing outpacing supply supply delivered delivered sqsmqm BBrirsibsabnaen eIn Idnudsutsrtiraila Sl Supuplpyl y(' (0'00 0s qsmqm) ) inin 2019. 2019. 6 006 00
•• LeasingLeasing has has been been dominated dominated by by existing existing stock, stock, wit withh 5 005 00 secondarysecondary vacancy vacancy increasing increasing as as tenants tenants upgrade upgrade into into 4 004 00 qualityquality prime prime facilities. facilities. 1010 year year 3 003 00 averageaverage •• 20192019 w wasas a a record record year year of of investment investment activity activity for for Brisbane, Brisbane, surpassingsurpassing $1 $1 billion billion in in sales sales for for the the first first time time since since 2007. 2007. 2 002 00 •• AverageAverage prime prime yields yields have have firmed firmed by by 46 46 bps bps during during 2019. 2019. 1 001 00
20152015 20162016 20172017 20182018 20192019
sqsmqm BBrirsibsabnaen eIn Idnudsutsrtiraila Dl Dememanadn d(' (0'00 0s qsmqm) ) BBrirsibsabnaen eIn Idnudsutsrtiraila:l T: oTtoatla vl avcaacnatn st tsotcokc kb yb yg rgardaed e(' (0'00 0s qsmqm) ) sqsmqm 4 504 50 6 006 00 AllA llO Otherther PrPre-Le-Leaesaes ea ndand D&C D&C PrimePrime 4 004 00 1010 year year averageaverage 3 503 50 SecondarySecondary 5 005 00 3 003 00 4 004 00 2 502 50 3 003 00 2 002 00
1 501 50 2 002 00 1 001 00 1 001 00 5050
20152015 20162016 20172017 20182018 20192019
Oct-11Oct-11Apr-12Apr-12Oct-12Oct-12Apr-13Apr-13Oct-13Oct-13Apr-14Apr-14Oct-14Oct-14Apr-15Apr-15Oct-15Oct-15Apr-16Apr-16Oct-16Oct-16Apr-17Apr-17Oct-17Oct-17Apr-18Apr-18Oct-18Oct-18Apr-19Apr-19Oct-19Oct-19
Source:Source: Knight Knight Frank Frank Research Research October October 2019, 2019, JLL JLL Research Research Q4 Q4 2019, 2019, GPT GPT Research Research For personal use only use personal For Delivering on strategy with quality developments
29-55 Lockwood Road, 59 Forest Way, 54-70 Templar Road, 36-52 Templar Road, Erskine Park NSW Karawatha QLD Erskine Park NSW Erskine Park NSW
Cross-dock and distribution Logistics facility for Toll NQX Chilled food processing facility Refrigerated storage and facility for TNT Australia 44,000sqm for Retail Ready Meats distribution facility for Rand 32,200sqm 21,000sqm 24,500sqm 2014 2015 2017 55 Whitelaw Place, 54 Eastern Creek Drive, 1B Huntingwood Drive, 1A Huntingwood Drive, 18-24 Abbott Road, Wacol QLD Eastern Creek NSW Huntingwood NSW Huntingwood NSW Seven Hills NSW
Distribution Centre for Loscam Warehouse and distribution New facility leased to Cahill Redevelopment of facility for Easy Auto car showroom for AHG 5,600sqm facility for Silk Logistics Transport 11,300sqm IVE – Blue Star Printing and Hills Distribution Centre 25,400sqm 21,100sqm 18,100sqm 2018
50 Old Wallgrove Road, 21 Shiny Drive, 2 Ironbark Close, 30 Ironbark Close, 38a Pine Road,
Eastern Creek NSW Truganina VIC Wembley Business Park QLD Wembley Business Park QLD Yennora NSW For personal use only use personal For Speculative facility fully leased Speculative facility completed Pre-leased facility due for Speculative facility due for Pre-leased facility due for to ACR Supply Partners in December 2019 completion in 2020 completion in 2020 completion in 2020 30,100sqm 26,500sqm 20,500sqm 14,400sqm 4,800sqm 2020 2019
LOGISTICS PORTFOLIO 92 LOGISTICS PORTFOLIO 93 Logistics Development Pipeline
Stage 1 was completed Stages 1 & 2 The Gateway Logistics Hub, + in 4Q 2019 Wembley Business Park, + are underway Truganina Victoria Queensland
23ha 140,000sqm $200m 16ha 74,000sqm $150m site located in prime logistics space expected end site located south prime logistics space expected end Melbourne’s West when complete value of Brisbane when complete value
4 6 1 2 3 2 1 5 3
1 26,500sqm facility was completed in 4Q 2019
2 24,300sqm facility expected to be completed in 2020
3 29,300sqm facility which can be delivered from 2021 1 20,500sqm pre-committed facility to be delivered in 1H 2020, leased to an international logistics provider, with an expected end value of $48 million and 4 16,300sqm facility providing flexibility for smaller requirements which can targeting a yield on cost of >6% be delivered from 2021 2 14,400sqm uncommitted facility scheduled for completion in 1H 2020. The 5 15,900sqm facility providing flexibility for smaller requirements which can facility has an expected end value of $27 million, targeting a yield on cost of >6% be delivered from 2021
For personal use only use personal For 3 The remaining land can support up to 39,000sqm of new logistics space, 6 28,000sqm facility which can be delivered from 2021 with an expected end value of >$75 million
Denotes underway or completed stages Sydney Logistics Portfolio | GPT Logistics Portfolio - Sydney
17 M7 Penrith 16 14 11 Seven Hills M2 Blacktown A40
M4 A6 A44 3 A28 Erskine Park M4 Parramatta A3 2 Silverwater 1 A44 6 Eastern A1 A3 A40 A9 15 Creek A28 7 8 4 Smithfield 9 M12 Yennora Wetherill 5 A6 A4 M7 Park Old Wallgrove Rd, Eastern Creek, NSW Badgerys 13 Villawood Sydney Chullora A22 Old Wallgrove Rd, Eastern Creek, NSW Creek A22 A22 CBD A9 Western A28
Sydney Airport Kingsgrove A34 A36 M1
(planned) A6 A34 12 M5 Sydney City centres Planned Motorway Airport A9 10 Minto Arterial roads Airport Motorways West Connex TNTTNT Erskine Erskine Park, Park, NSW NSW
1 Erskine Park (7 Assets) 10 Pembroke Rd, Minto 1 Erskine Park (7 Assets) 10 Pembroke Rd, Minto 2 Eastern Creek (3 Assets) 11 Abbott Rd, Seven Hills 2 Eastern Creek (3 Assets) 11 Abbott Rd, Seven Hills 3 Huntingwood Dr, Huntingwood (2 Assets) 12 Vanessa St, Kingsgrove 3 12 Vanessa St, Kingsgrove 4 Victoria HuntingwoodSt, Wetherill Dr, Park Huntingwood (2 Assets)13 Biloela St, Villawood 5 Pine4 Rd, Victoria Yennora St, Wetherill Park 14 13Bessemer Biloela St, VillawoodBlacktown
For personal use only use personal For 6 Rosehill5 Pine Business Rd, Yennora Park, Camellia 15 14Mamre Bessemer Rd, Kemps St, Blacktown Creek (land) 7 Derby6 St,Rosehill Silverwater Business Park, Camellia 16 15Cox MamrePl, Glendenning Rd, Kemps (land) Creek (land) 8 Holker7 St,Derby Newington St, Silverwater 17 16Andrews Cox Pl, Rd, Glendenning Penrith (under (land) development) Abbott Rd, Seven Hills, NSW 9 Abbott Rd, Seven Hills, NSW Sydney8 OlympicHolker St, Park Newington (7 Assets) 17 Andrews Rd, Penrith (under development) 9 Sydney Olympic Park (7 Assets)
LOGISTICS PORTFOLIO 94 LOGISTICS PORTFOLIO 95 Melbourne Logistics Portfolio | GPT Logistics Portfolio - Melbourne
A58
A39 5 A58
M31
Campbellfield A29 A35 A55
M2 City centre M80 A46 Motorways M79
A40 A27 Arterial roads M80
Airport A41 M79
A40 A21 Boundary Rd, Truganina A35 M80 A40 Boundary Rd, Truganina M8 M2 C702 Derrimut Sunshine M3 A35 2 3 8 M80 A83 1 4 Truganina M1 Port Melbourne 7 6 Melbourne CBD M1 M1 A24 A26 GatewayGateway Logistics Logistics Hub (Shiny Hub Dr,(Shiny Truganina Dr, Truganina - complete) - complete)
1 Boundary Rd, Truganina 6 Citiwest Industrial Estate, Altona North 1 Boundary Rd, Truganina 6 Citiwest Industrial Estate, Altona North 2 Mount Derrimut Rd, Derrimut 7 Gateway Logistics Hub, Truganina 2 Mount Derrimut Rd, Derrimut 7 Gateway Logistics Hub, Truganina 3 Sunshine Business Estate, Sunshine (under development) 3 Sunshine Business Estate, Sunshine (under development) 4 Citiport Business Park, Port Melbourne 8 Boundary Rd, Truganina (land) For personal use only use personal For 4 Citiport Business Park, Port Melbourne 8 Boundary Rd, Truganina (land) 5 Austrak Business Park, Somerton 5 Austrak Business Park, Somerton Sunshine Business Estate, Sunshine
Sunshine Business Estate, Sunshine Brisbane Logistics Portfolio | GPT Logistics Portfolio - Brisbane
M1 A3
M7 Brisbane Airport
City centre M4 Brisbane Arterial roads CBD
Motorways
Airport M5 M1 A7 M3 WhitelawWhitelaw Pl, Pl, Wacol Wacol A17 Wacol M7 1 M2 M2 Springwood
M2 2 3 Berrinba A5 M6
M1 4 Yatala ForestForest Way, Way, Karawatha Karawatha
(Artist’s impression) Artist’s impression
1 Whitelaw Pl, Wacol 1 Whitelaw Pl, Wacol 2 Forest Way, Karawatha 2 Forest3 WembleyWay, Karawatha Business Park, Berrinba (under development) 4 Quarry Rd, Yatala For personal use only use personal For 3 Wembley Business Park, Berrinba (under development) 4 Quarry Rd, Yatala Wembley Business Park (Stage 1), Berrinba
Wembley Business Park (Stage 1), Berrinba
LOGISTICS PORTFOLIO 96
LOGISTICS PORTFOLIO 97 For personal use only use personal For
Sunshine Business Estate, Sunshine, VIC Development
Annual Result 2019 For personal use only use personal For Development Overview
Forecast Forecast Cost to Complete Target Total Cost Completion Sector Ownership Interest (%) ($m) GPT’s Share ($m) Fund’s Share ($m) Date Underway 38A Pine Road, Yennora, NSW Logistics 100% GPT 11 2 0 1H 2020 2 Ironbark Close, Wembley Business Park, Berrinba, QLD Logistics 100% GPT 44 10 0 1H 2020 30 Ironbark Close, Wembley Business Park, Berrinba, QLD Logistics 100% GPT 25 9 0 1H 2020 128 Andrews Road, Penrith, NSW Logistics 100% GPT 78 53 0 2H 2020 32 Smith Street, Parramatta, NSW Office 100% GPT 266 161 0 2H 2020 Queen & Collins, Melbourne, VIC Office 100% GWOF 238 0 211 1H 2021
Total Underway 662 235 211 For personal use only use personal For
DEVELOPMENT 98 DEVELOPMENT 99 Development Overview
Forecast Cost to Complete Forecast Sector Ownership Interest (%) Total Cost ($m) GPT’s Share ($m) Fund’s Share ($m) Future Pipeline Office 190 181 0 Melbourne Central, VIC 100% GPT Retail 70 67 0 Cockle Bay Park, Sydney, NSW Office 25% GPT / 50% GWOF 1,200 400 800 51 Flinders Lane, Melbourne, VIC Office 100% GWOF 400 0 400 Skygarden, Brisbane, QLD Office 100% GWOF 400 0 400 Corner George & Bathurst, Sydney, NSW Office 100% GWOF 150 0 150 42 Cox Place, Glendenning, NSW Logistics 100% GPT 39 22 0 407 Pembroke Road, Minto, NSW Logistics 50% GPT 15 9 0 Austrak Business Park, Somerton, VIC Logistics 50% GPT 67 45 0 Stage 3, Wembley Business Park, Berrinba, QLD Logistics 100% GPT 70 50 0 The Gateway Logistics Hub, Truganina, VIC Logistics 100% GPT 150 103 0 865 Boundary Road, Truganina, VIC1 Logistics 100% GPT 193 190 0 Mamre Road, Kemps Creek, NSW1 Logistics 100% GPT 378 367 0 Rouse Hill Town Centre, NSW Retail 100% GPT 200 200 0 Chirnside Park, VIC Retail 100% GWSCF 85 0 85 Highpoint Shopping Centre, VIC Retail 16.67% GPT / 83.33% GWSCF 100 17 83 Westfield Penrith, NSW Retail 50% GPT 50 50 0 Casuarina Square, NT Retail 50% GPT / 50% GWSCF 20 10 10 Total Future 3,777 1,711 1,928 Total Underway and Future Pipeline 4,439 1,945 2,139
1. Land secured on deferred settlement terms. For personal use only use personal For Rouse Hill
Rouse Hill M1 Cudgegong Rd Kellyville A3
A2 Showground Bella Vista Cherrybrook M7 A1 Norwest Castle Hill A28
Macquarie M2 Epping University A1 A40
A6 A28 Macquarie Park North Ryde A38 Chatswood M4
Crows Nest A3 A40 City centresA28 Victoria Cross
Motorways Barangaroo
A6 Martin Place Arterial roads Pitt St Central Sydney A22 CBD M7 Metro Northwest A28 West Connex A22 M1 A34 A36
Rouse Hill Town Centre development vision (Source: The GPT Group) Rouse Hill Location & Transport Map (Source: The GPT Group)
Rouse Hill is a significant regional centre in Sydney’s North West, located within 600 metres of Metro Northwest. 2019 2000
• GPT lodged a mixed-use Transport Oriented Master Plan SYDNEY METRO NORTHWEST NEW APARTMENTS Development Application in April 2019. First stage became operational in Masterplan includes 2,000 For personal use only use personal For 2019. Rouse Hill to Martin Place will apartments, 20,000sqm • The Master Plan covers an area of 10 hectares adjoining take 45 minutes, with trains running of retail, commercial and the existing Town Centre to the north. every 4 minutes at peak times. community spaces.
DEVELOPMENT 100
DEVELOPMENT 101 For personal use only use personal For
Artist impression, Corner of George & Bathurst Streets (at 580 George Street, Sydney) Funds Management
Annual Result 2019 For personal use only use personal For 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 significant co-investment in the Group’s managed funds. GPT’s Funds Management platform is made up of the GPT Wholesale Office Fund (GWOF) and the GPT Wholesale Shopping Centre Fund (GWSCF).
Fund Summary as at 31 December 2019 GWOF GWSCF Number of Assets 18 7 Total Assets $8.8b $4.5b Net Gearing 16.4% 23.6% One Year Equity IRR (post-fees) 10.3% -3.0%
Fund Details as at 31 December 2019 GPT's Ownership Interest 22.9% 28.5% GPT's Investment $1,610.6m $949.8m Established July 2006 March 2007 Weighted Average Capitalisation Rate 4.86% 4.87% Portfolio Occupancy 98.8% 99.4% GPT’s Share of Fund FFO $72.2m $45.5m GPT Base Management Fee $40.3m $21.6m
Liberty Place, Sydney For personal use only use personal For
FUNDS MANAGEMENT 102 FUNDS MANAGEMENT 103 GPT Funds Management Overview
Historical Growth in Funds under Management Growth in Funds under Management for the 12 months to 31 December 2019
$13.3b $12.6b $12.0b $0.6b $0.3b $0.2b $13.3b $10.4b $12.6b $9.6b $10.0b
$6.6b $7.1b $5.3b $5.6b
Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec18 Developments Acquisitions Divestments Dec 19 FUM & Asset Growth
GWOF performance versus benchmark GWSCF performance versus benchmark
17.00 10 8.1 14.715.014.7 7.37.7 7.47.8 7.37.7 7.58.0 13.8 14.0 6.57.0 6.8 6.9 7.1 13.2 13.2 13.4 5.9 5.76.4 12.8 12.7 12.7 13.0 4.9 4.9 5.4 12.75 12.2 12.1 12.2 5 4.6 4.5 4.7 11.9 11.1 11.3 11.4 11.2 10.4 10.6 10.3 10.7 2.4 9.4 1.4 0.1 8.50 0 -1.7
Total return (%) return Total -3.0 -2.9 4.25 -5
0.00 -10 -8.9 GWOF MSCI/Mercer Peer 1 Peer 2 Peer 3 GWSCF MSCI/Mercer Peer 1 Peer 2 Peer 3 Peer 4
All Oce Index All Retail Index For personal use only use personal For 1 Year 3 Years 5 Years 7 Years 10 Years 1 Year 3 Years 5 Years 7 Years 10 Years
Source: MSCI/Mercer. Note: Differences due to rounding. GWOF Overview
GWOF provides wholesale investors with exposure to 17 high quality office assets, located across Australia’s key CBD office markets. At 31 December 2019, the Fund had a value of $8.8 billion.
December 2019 December 2018 GWOF Ownership Composition As at 31 December 2019 Number of Assets1 18 18 Total Assets $8.8b $7.8b Net Gearing 16.4% 15.5% One Year Equity IRR (post-fees) 10.3% 12.7%
Fund Details as at 31 December 2019 Domestic Super Funds 44% GPT's Ownership Interest (%) 22.9% GPT 23% GPT's Ownership Interest ($m) $1,610.6m Oshore Pension Funds 16% Domestic – Other 8% Established July 2006 Oshore – Other 7% Weighted Average Capitalisation Rate 4.86% Sovereign Wealth Funds 2% Portfolio Occupancy (%) 98.8% GPT’s Share of Fund FFO ($m) $72.2m GPT Base Management Fee ($m) $40.3m
Inception to Date 1 January 2019 to (Annualised) 21 July 2006 Equity IRR 31 December 2019 to 31 December 2019
For personal use only use personal For Post fees 10.3% 9.7%
1. Includes 32 Flinders Street carpark.
FUNDS MANAGEMENT 104 FUNDS MANAGEMENT 105 GWOF Capital Management
Total borrowings for the Fund at 31 December 2019 were $1,455 million resulting in net gearing of 16.4%.
GWOF Capital Management Summary as at 31 December 2019 Net Gearing 16.4% Weighted Average Cost of Debt 3.9% Fees and Margins (included in above) 1.9% Weighted Average Debt Term 7.8 years Drawn Debt Hedging 78% Weighted Average Hedge Term 3.4 years
GWOF Loan Facilities Facility Limit ($m) Facility Expiry Amount Currently Drawn ($m) Bilateral Facility 75.0 31 March 2022 75.0 Bilateral Facility 50.0 1 April 2022 19.0 Medium Term Notes 150.0 18 May 2022 150.0 Bilateral Facility 100.0 30 September 2022 100.0 Bilateral Facility 50.0 31 March 2023 0.0 Bilateral Facility 75.0 1 April 2023 0.0 Bilateral Facility 100.0 30 September 2023 100.0 Bilateral Facility 150.0 27 November 2023 17.0 Bilateral Facility 200.0 1 April 2024 0.0 Bilateral Facility 100.0 31 October 2024 45.0 Medium Term Notes 200.0 12 January 2026 200.0 Medium Term Notes 200.0 22 February 2027 200.0 US Private Placement 99.1 18 June 2029 99.1 US Private Placement 99.1 18 June 2030 99.1
For personal use only use personal For US Private Placement 175.5 7 February 2032 175.5 US Private Placement 175.5 7 February 2034 175.5 Total 1,999.1 1,455.1 2 Southbank Boulevard, Melbourne GWSCF Overview
GWSCF provides wholesale investors with exposure to 7 high quality retail assets. At 31 December 2019, the Fund had a value of $4.5 billion.
December 2019 December 2018 GWSCF Ownership Composition As at 31 December 2019 Number of Assets 7 8 Total Assets $4.5b $4.8b Net Gearing 23.6% 24.4% One Year Equity IRR (post-fees) -3.0% 4.8%
Fund Details as at 31 December 2019 Domestic Super Funds 38% GPT's Ownership Interest (%) 28.5% GPT 28% GPT's Ownership Interest ($m) $949.8m Domestic – Other 14% Established March 2007 Oshore Pension Funds 12% Sovereign Wealth Funds 5% Weighted Average Capitalisation Rate 4.87% Oshore – Other 3% Portfolio Occupancy (%) 99.4% GPT’s Share of Fund FFO ($m) $45.5m GPT Base Management Fee ($m) $21.6m
Inception to Date 1 January 2019 to (Annualised) 31 March 2007 Equity IRR 31 December 2019 to 31 December 2019
Post fees -3.0% 5.5% For personal use only use personal For
FUNDS MANAGEMENT 106 FUNDS MANAGEMENT 107 GWSCF Capital Management
Total borrowings for the Fund at 31 December 2019 were $1,089 million resulting in net gearing of 23.6%.
GWSCF Capital Management Summary as at 31 December 2019 Net Gearing 23.6% Weighted Average Cost of Debt 3.7% Fees and Margins (included in above) 1.6% Weighted Average Debt Term 4.9 years Drawn Debt Hedging 78% Weighted Average Hedge Term 3.2 years
GWSCF Loan Facilities Facility Limit ($m) Facility Expiry Amount Currently Drawn ($m) Bilateral Facility 50.0 14 September 2022 50.0 Bilateral Facility 50.0 30 September 2022 47.0 Bilateral Facility 100.0 1 October 2022 100.0 Bilateral Facility 75.0 30 November 2022 75.0 Bilateral Facility 50.0 8 January 2023 50.0 Bilateral Facility 125.0 30 June 2023 75.0 Bilateral Facility 150.0 1 July 2023 150.0 Bilateral Facility 50.0 1 January 2024 42.0 Bilateral Facility 100.0 31 May 2024 100.0 Medium Term Notes 200.0 11 September 2024 200.0 Bilateral Facility 75.0 30 November 2024 0.0 Bilateral Facility 100.0 30 January 2025 0.0
Medium Term Notes 200.0 28 February 2028 200.0 For personal use only use personal For Total 1,325.0 1,089.0 Wollongong Central, NSW