INTERIM RESULT >GPTARTWORK TO DATAPACKCOME For personal use only 2014 PB 1 CONTENTS 750 Collins Street, Melbourne, VIC GPT Overview 46 Financial Performance 56 Retail Portfolio 72 Office Portfolio 86 Logistics Portfolio 98 Development 110 For personal use only Funds Management 124 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. 42 GPT Overview INTERIM RESULT >GPT GPT OVERVIEW For personal use only 2014 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’s Investment Management team is focused on maximising returns across the portfolio. GPT Portfolio Diversity As at 30 June 2014 Highpoint Shopping Liberty Place, Connect@Erskine Park, Centre, VIC Sydney NSW Retail Portfolio Office Portfolio Logistics Portfolio Retail 51% Office 34% 16 shopping centres 23 assets 30 assets Logistics 15% 1,040,000 sqm GLA 1,120,000 sqm NLA 760,000 sqm GLA 3,600+ tenants 360+ tenants 80+ tenants For personal use only $4.5bn portfolio $3.0bn portfolio $1.3bn portfolio $8.1bn AUM $7.1bn AUM $1.5bn AUM 46 GPT PORTFOLIO OVERVIEW Total Portfolio Return for the rolling 12 months to 30 June 2014. IPD Total Return for the 12 months to 30 June 2014 Retail Office Logistics Total (Inc GWSCF Stake) (Inc GWOF Stake) Investment Portfolio Portfolio 8.4% 0.2% 8.6% 1.6% 8.1% 1.2% 8.0% 0.9% 7.6% 6.7% 6.4% 6.6% For personal use only Income Return Capital Return Total Return Note: Total Return figures include equity interests in wholesale funds and exclude logistics development land. Variance in total is due to rounding. 47 48 GPT PORTFOLIO METRICS Across the three sectors, GPT has maintained high occupancy and a long WALE. Comparable Portfolio Size1 Income Growth2 WALE Occupancy WACR Retail $4.53bn 2.6% 4.0 years 99.5% 5.96% Office $2.96bn (3.1%) 6.3 years 91.7% 6.56% Logistics $1.31bn 0.6% 5.5 years 95.3% 8.17% Total $8.80bn 0.3% 4.9 years 95.6% 6.43% Structured Rental Increases³ Retail Office Logistics Fixed 86% Fixed 85% Fixed 88% Other 14% Other 15% Other 12% 3.4% 4.5% 3.9% Average Average Average Increase Increase Increase For personal use only 1. Assets as at 30 June 2014. 2. Income for the six months to 30 June 2014 compared to the previous corresponding period. 3. For the six months to 31 December 2014. 47 48 GPT SECURITYHOLDER OVERVIEW GPTGPT Registry Securityholders by byGeography Geography GPT Securityholders by Type As at 30 June 2014 As at 30 June 2014 Domestic Australia 61% Institutions 50% North America 21% Foreign UK 5% Institutions 39% Europe (ex UK) 7% Retail Asia 6% Investors 11% For personal use only 49 50 DRIVERS OF EARNINGS AND VALUE For the rolling 12 months to 30 June 2014. Retail: 86% at 4.5% increase3 Derivatives Banks Office: 85% at 3.9% increase3 Gearing 60% 24.8% Bonds Logistics: 88% Development 40% at 3.4% increase3 Fixed Rental Cap Rates Increases Retail: 99.5% Valuation Retail: 5.96% 86% at 4.2% Office: 91.7% Office: 6.56% Logistics: 95.3% Logistics: 8.17% Development Fees 2H 2014 Expiries Acquisitions Retail: 12% Portfolio Mix $1.1bn Occupancy Office: 3% Retail: 51% 95.6% Logistics: 3% Office: 34% Divestments Innogen Logistics: 15% Other Fees Asset Scrub Others NTA Change New Profit 2 1.6% WANOS Sources Total Return LiquidSpace Average Term 8.4% 6.0 years Distribution EPS Yield FM Fees 6.8% 7.0% Income Existing Funds WACD4 4.81% Less Exchangeable Jaws MER < 45 bps New Funds 100% Hedged Less Capex AUD Expenses Capital Buy-back For personal use only 76% Hedged Fixed Maintenance Incentives Interest Expense 1. For the six months to 30 June 2014. 2. Weighted average number of securities. Refinancing 3. Structured rental increases for the six months to 31 December 2014. 12 months: Nil 4. Weighted average cost of debt. 49 50 STRATEGY ON A PAGE OUR PURPOSE Property to Prosperity We maximise the financial potential of Australian property with solutions that fulfil the aspirations of our investors, tenants and communities. FOR OUR FOR OUR FOR OUR FOR OUR FOR OUR INVESTORS TENANTS COMMUNITIES SECURITYHOLDERS PEOPLE We provide investors We provide property We are committed to We are a secure, We equip our people for with access to value in solutions, enabling being a highly trusted reliable investment, high performance, property to meet their businesses to prosper partner, creating value targeting superior creating a unified team investment needs. and connect. in our communities. risk adjusted returns with a culture of over time. achievement. OUR GOALS Measured over 1, 3 and 5 years: • Total return > 9% • Leading relative total shareholder return OUR ACHIEVEMENT CULTURE For personal use only ACCOUNTABLE EFFECTIVE AUTHENTIC FUTURE SHAPING CAN DO COURAGEOUS UNIFIED 51 52 GLOSSARY A Grade...........................As per the Property Council of Australia’s ‘A Guide to Office Building Quality’ AFFO ............................... Adjusted Funds From Operations AREIT ..............................Australian Real Estate Investment Trust ASX .................................Australian Securities Exchange AUM ................................ Assets under management Assets under management includes interests in joint ventures. Bps .................................Basis Points Capex..............................Capital expenditure CBD ...............................Central Business District CO2 .................................Carbon Dioxide CPI ..................................Consumer Price Index cps ..................................Cents per security DPS.................................Distribution per security EBIT ................................Earnings Before Interest and Tax EPS ................................. Earnings per security Earnings per security is defined as Funds From Operations per ordinary security. FFO ................................. Funds From Operations Funds From Operations is defined as the underlying earnings calculated in accordance with the PCA ‘Voluntary Best Practice Guidelines for Disclosing FFO and AFFO’. FUM ................................Funds under management Gearing ...........................The level of borrowings relative to tangible assets. GFA .................................Gross Floor Area GLA .................................Gross Lettable Area GWOF..............................GPT Wholesale Office Fund GWSCF ...........................GPT Wholesale Shopping Centre Fund HoA .................................Heads of Agreement IFRS ................................International Financial Reporting Standards IPD ..................................Investment Property Databank IRR ..................................Internal Rate of Return Jaws ...............................Jaws is defined as the combined benefit derived from the increase in income and the reduction in expenses. Major Tenants ................ Retail tenancies including Supermarkets, Discount Department Stores, Department Stores and Cinemas. MAT ................................Moving Annual Turnover MER ................................ Management Expense Ratio Management Expense Ratio is defined as management expenses divided by assets under management. For personal use only Mini-Major Tenants ........Retail tenancies with a GLA above 400 sqm not classified as a Major Tenant. 51 52 MTN ................................Medium Term Notes N/A .................................Not Applicable NABERS .........................National Australian Built Environment Rating System NAV .................................Net Asset Value NLA ................................Net Lettable Area NPAT ...............................Net Profit After Tax NTA .................................Net Tangible Assets per security. Ordinary Securities ........ Ordinary securities are those that are most commonly traded on the ASX. The ASX defines ordinary securities as those securities that carry no special or preferred rights. Holders of ordinary securities will usually have the right to vote at a general meeting of the company, and to participate in any dividends or any distribution of assets on winding up of the company on the same basis as other ordinary securityholders. PCA .................................Property Council of Australia Premium Grade..............As per the Property Council of Australia’s ‘A Guide to Office Building Quality’ Prime Grade ...................Prime Grade includes assets of Premium and A Grade quality. psm ................................Per square metre PV ...................................Present Value Retail Sales ....................100% of GPT and GWSCF assets. GPT reports retail sales in accordance with the Shopping Centre Council of Australia (SCCA) guidelines. ROCE ..............................Return on capital expenditure Specialty Tenants ...........Retail tenancies with a GLA below 400 sqm. INTERIM RESULT Sqm ................................Square metre TR ................................... Total Return FINANCIAL PERFORMANCE Total Return is defined as the sum of the change in Net Tangible Assets, plus the distribution per security over the period, divided by the NTA at the beginning of GPT the period. TSR ................................. Total Securityholder Return > Total Securityholder Return is defined as the distribution per security plus change in security price. Total Tangible Assets .....Total Tangible Assets is defined as per the Constitution of