BWP GROUP — Investor Presentation 2004

Aug 11, 2004

August 2004

www.bunningspropertytrust.com.au

Presentation Outline

• $\triangleright$ Structure
• ▶ Key Events/Results

• Tenant Performance

• Acquisition/Development Process

• Portfolio

• Capital Management

• $\triangleright$ Financial Performance

• Outlook

Structure Overview

• Manager: Bunnings Property Management (BPML) Super
• Subsidiary of WES; but
• Independent board
  • Bill Cairns (Chairman); AVR; ex GPT, FAL, WAN 雛
  • Robert McChaig; Founder of Colliers, Multiplex; PAO (Chair) 髅
  • Peter Mansell; WAN, FAL, JDV (Chair), ZFX (Chair) 鞣
  • Gene Tilbrook, WES, Gresham, ARG 鞣
• Independent property valuations
• Tenant: Bunnings Pty Ltd (Bunnings) Collage Street
• Subsidiary of WES
• Register Seconds
• WES 22%
• "Institutions" approximately 28%
• Retail approximately 50%

• Acquisitions/developments (\$52.2m) Support
• 1 development site acquired & 1 established property
• 3 warehouses developed & 1 substantially completed
• 1 distribution centre developed
• contracts exchanged on Thornleigh property
• $\geq 14.6\%$ market rent review uplift on 20 properties
• $\triangleright$ Revaluation of 24 properties up 20.8% on book value
• $\triangleright$ Plans for first tenant other than Bunnings

Results - highlights at 30 June 2004

The Tenant $-$ a strong performer with 125 Warehouses

The Tenant – recent activity and outlook

• 2004 Trading Super
• \$3.8b revenue; $\uparrow$ 11.7% on pcp
• store on store cash sales 1 11%, trade sales 1

• $$375m$ EBITA; $\uparrow$ 12.7% on pcp

• Series 3000 Warehouse

• margin & inventory management improvements

6 BWH upgrades

Series 5000 Warehouse

5 former BBC HWH refits

Outlook 12 openings scheduled for 2005; then 8 to 12 pa

two 3000 Series openings in 2005

Series 7000 Warehouse

Addin 2004

The Tenant $-100\%$ occupancy; 10.8 yr ave. lease expiry

n

Acquisition/Development Process - greenfields

• Bunnings identifies site
• visible & accessible/usually industrial land
• typically 3 hectares/significant catchment area
  • option to purchase
• Bunnings may offer to BPML T
• full development proposal
• negotiated outcome
• If offer accepted by BPML
• BPML purchases site
  • Bunnings usually Project Manager

Acquisition of developed properties

Ex Bunnings

• IPO properties, others
• Ex BBC Hardware Ltd (18 acquired by WES via SMI)
• 5 purchased by BWP to date & 1 under contract
• 4 sold by WES on VP basis
• more BWP purchases possible
• Ex third party vendors (approximately 65)
  • one purchased (Fyshwick, Dec 02)
  • more opportunistic purchases possible

Portfolio - 50 properties; geographic spread improving

Portfolio - NZ and 3000 series opportunities

• $\triangleright$ New Zealand
• Bunnings rollout 25 stores (targeted)
• 2 BWH stores completed to date
• Logical growth opportunity for BWP
• BWP prepared for opportunities
• $\geq$ 3000 Series
• Metro and regional properties
• 29 locations identified by Bunnings
• Bunnings rollout 4 pa (targeted)
• 2 openings scheduled in 2005

Portfolio - growth being maintained

ACCES 2014

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Portfolio - 14.6% uplift from 20 rent reviews

Property	Passing rent \$000 pa	Market review \$000 D.	Uplift %	Effective date
Altona, VIC	Karl I	866	49.9	24 Sep 03
Balcatta, WA	1711	1,305	KALES	25 Sep 03
Broadmeadows, VI	722	859	19.0	24 Sep 03
Burleigh Heads, OLD	1,017	1,113	9.5	22 Oct 03
Cannon HiggeLD	946	1.125	18.9	18 Mar 04
Croydon, VIC	778	870	Alia	24 Sep 03
Epping, VIC	783	916	TAS	12 Mar 04
Fountain Calle, VIC	833	965	15.8	24 Sep 03
Joondalup, WA	805	906	12.5	225 Sep 03
Mandurah, WA	$\sqrt[6]{11}$	765	7.6	2 Dec 03
Mentone, VIC	944	990	4.9	24 Sep 03
Minchinbury NSW	955	1,256	31.6	31 Dec 03
Northland VIC	861	17030	19.6	24 Sep 03
Nunawading, VIC	1,222	1,400	\$14.6	24 Sep 03
Sandown, VIC	778	815	A B	24 Sep 03
Scoresby, VIC	833	1,000	20.0	24 Sep 03
Southport, QLD	1,009	1.103	9.3	10 Nov 03
Sunshine, VIC	722	WS C	1.9	24 Sep 03
Tuggeranong, ACT	842	1,070	27.0	1 Dec 03
Underwood, QLD	952	1,023	7.4	22 Oct 03
Total	17,546	20,113	14.6

AT THE 2004

Portfolio - market rent review analysis

$\triangleright$ Process

• licensed surveys of premises by BWR
• independent expert advice procured by BWP
• 3 negotiated outcomes (results consistent with BWP advice)
• 17 determinations (7 valuers, mutual appointment)
• $\triangleright$ Results varied widely
• range $+1.9\%$ to $+31.6\%$ uplift
• averages: VIC (+13.6%), WA (+13.3%), QLD (+11.2%)
• Impact Support
• \$1.7m kicker to 2003/04 revenue (41% of revenue uplift)
• \$2.6m contribution on annualised basis

Portfolio - 20.8% uplift from 24 revaluations

Property	Book value \$000	Current market value \$000	Change %	Current valuation yield %
Altona, VIC	8,200%	10,250	25.0	8.50
Balcatta, WA	11,700	15,500	225	8.50
Broadmeadows, VIC	8,450	10,700	26.6	8.00
Burleigh Heads, Q@	10,200	12,350	$21.1^\circ$	8.50
Cannon Hill	9,400	12,600	34.0	8.50
Croydon, VIC	9,200	10/500	24.1	8.25
Epping VIC	9,500	11.400	20.0.	8.OO
Fountain Cate WIC	10,500	12,100	$\sqrt{2}$	8.00
Frankston, MC	16,994	20,000	$17.7^{\circ}$	8.00
Joondalup, WA	8,300	10.800	30.1	850
Mandurah, WA	27350	൭൧൛൛	23.8	850
Maribyrnong, VIC	7,562	s oon '	5.8	310/a
Mentonie, VIC	12,100	12,400	2.5	82.OO
Midland, WA	9,784	11,900	21.6	8.50
Minchinbury NSW	10,000	15,750	57.5	8.OO
Northland MIC	10,900	13,400	22.9	7.75
Nunawading, VIC	16,395	18,100	10.4	7.75
Oakleigh South, VI	16,163	19,000	A 6	8.00
Sandown, VIC	9,400	9,900	57. 28	8.25
Scoresby, VIC	10,200	11,800	经5.7	8.50
Southport, QLD	10,200*	12,350.	21.1	8.50
Sunshine, VIC	8,450	8,900	5.3	8.25
Tuggeranong, ACT	8,600	12,610	46.6	8.50
Underwood, QLD	9,400	11,300	20.2	8.50
Total	248,948	300,710	20.8

AT THE 2004

Portfolio - Thornleigh acquisition

• Contracts exchanged, settlement imminent
• 7^th former BBC HWH purchase by BWP (6^th-from WES)

Snapshot

• 19km northwest of Sydney CBD
• major arterial Pennant Hills Rd, retail precinct
• $1.2$ ha site, 5,130 $m^2$ GLA
• \$13.3m purchase
• rent \$1,000,000 pa (\$195/m²)
• $7.5\%$ cap rate

Portfolio - Bayswater tenancy development

• A tenant other than Bunnings a first for BWP
• Council approvals
• maximum 2 tenancies, minimum tenancy 500m²
• restricted retail
• Shapshot
  • adjacent new BWH on Canterbury Rd
  • 8,200m² site valued at \$1.8m (inc. developed car park)
  • $2,459$ m² GLA
  • pre leasing campaign commenced
  • capital estimate \$2m

¹includes stamp duty

ASSESSMENT

Capital Management - overview

• \$156m equity raised post IPO Seconds
• \$25.0m underwritten UPP (Nov 03)
• \$33.7m placement (Nov 02)
• \$29.5m one for eight rights issue (Oct 01)
• \$23.9m placement (Sept 01)
• \$44.0m one for three rights issue (Jan 00)
• Borrowings Allen Company
• Preferred range of 20% to 40% (debt to total assets)
• Weighted average cost 6.0% (inc. margins)
• NAB bill facility limit \$175m
• \$13.7m interest free loans repaid during 2003/04
• Distribution reinvestment plan Seconds
• Uptake Feb 04 : 44% unitholders (57% unitholdings)
• 2.5% market discount (Aug 04 : \$1.54 per unit)

Capital Management - gearing within range

Capital Management - debt actively managed

30 Jun 04: 5.75% weighted average (exc. margins/fees) Series

ASSESSMENT

Financial Performance - DPU growth momentum

FY 2004 DPU 11.38 cents (1 8.4% on pcp) Support

ASSESSMENT

Financial Performance - solid total returns

Source: Bloomberg, UBS Warburg

Outlook

• Acquisition opportunities Super
• ex Bunnings rollout (8 to 12 pa)
• former BBC properties (ex WES & others)
• New Zealand BWH rollout
• 3000 Series rollout
• Portfolio upgrades/redevelopments Super
• Rent reviews 7 properties in 2004/05 $\sum_{n=1}^{\infty}$
• Revaluations each property at least every 3 years September

UNIMENNASIOSEISEN TAINA KUULIISEN TEINEIN VAIKEESTA KUULIINAN KUULIISESTA KUULIINAN KUULIISESTA KUULIINA KEEN		$2004/05$ 2005/06 2006/07 2007/08	00000000000000000000000000000000000000 2008/09
Rent reviews
Revaluations