BWP GROUP — Investor Presentation 2005

Feb 22, 2005

February 2005

www.bunningspropertytrust.com.au

Presentation Outline

• Structure

• ▶ Key Events/Results

• Tenant Performance

• Portfolio

• Capital Management

• Financial Performance

• Outlook Support

Structure

• Manager: Bunnings Property Management (BPML) SALES BY
• Subsidiary of WES; but ...
• Independent board
  • Bill Cairns (Chairman); AVR; ex GPT, FAL, WAN
  • John Austin, MREEF, ex JLL, GRW Property 籪
  • Peter Mansell; WAN, FAL, JDV, ZFX 籪
  • Gene Tilbrook; WES, Gresham, ARG
• Independent property valuations
• $\triangleright$ Tenant: Bunnings Pty Ltd
• Subsidiary of WES
• Register Sept
• WES 23%
• "Institutions" approximately 24%
• Retail, other approximately 53%

$\triangleright$ Acquisition, development & upgrades (\$19.1m)

• purchase of Thornleigh ex BBC HWH
• completion of BWH at Maitland
• upgrades at Fountain Gate, Mile End, Tuggeranong
• progression of upgrades at Nunawading, Northland
• $\triangleright$ Positive revaluation results
• 23.4% uplift from Coffs Harbour, Geraldton
• $\triangleright$ 8 market rent review notices served

Results - highlights at 31 Dec 2004

The Tenant $-127$ Warehouses across AUS & NZ

The Tenant – recent activity and outlook

1H05 trading performance Support

• \$2.1b revenue; $\uparrow$ 7.1% on pcp
• $\frac{1}{2}$ store on store cash sales 1 7%, trade sales $\sqrt{1\%}$
• trading EBITA \$228m; $\uparrow$ 10.7% on pcp

Series 3000 Warehouse

Series 5000 Warehouse

• trading EBITA/sales 10.8%; vs 10.5% in pcp
• progress on trade business strategy, pilot cross docking model

eunana) znapat 1H05 network

• 4 openings
• 9 BWH upgrades/refurbs

2H05 network outlook

• 6 to 8 new openings (total 10 to 12 for FY05) Series 7000 Warehouse
• 4 upgrades/refurbs (total 13 in FY05)

Tangan di Kabupatén Ba

The Tenant $-$ 100% occupancy; 10.3 yr ave. lease expiry

BWP Portfolio - 51 properties; geographic spread improving

Portfolio - growth through acquisition and revaluation

Portfolio - 8 market rent review notices issued in 1H05

¹results received post books close for 1H05

Portfolio $-23.4\%$ uplift from 2 revaluations

• At least 9 further revaluations likely pre 30 Jun 05 Service
• Portfolio weighted ave cap rate 8.45% Sure

Portfolio - acquisition and development

Thornleigh, NSW

• 19km northwest of Sydney CBD, major arterial Pennant Hills Rd
• $1.2$ ha site, 5,130m² retail area
• \$13.3m purchase
• rent \$1,000,000 pa; 7.5% cap rate

Maitland, NSW

• Hunter Valley
• 3.4 ha site, 12,600m² retail area
• \$10.7m purchase e.
• rent \$961,650 pa; 9.0% cap rate ju.

Portfolio - property upgrade programme

	Capital Expenditure C.	Incremental Rent (\$pa)	Status
Fountain Gate, VIC	1,572,000	129,690	complete 1H05
Mile End, SA	258,800	26,159	complete 1H05
Tuggeranong, ACT	245,000	22,050	complete 1H05
Sub-total	2,075,800	177,899
Nunawading, VIC	3,100,000	248,000	complete 11 Feb 05
Northland, VIC	2,920,000	233,600	WIP
Lismore, NSW	409,000	35,788	WIP
Sub-total	6,429,000	517,388

Portfolio - Bayswater tenancy development

Background

• adjacent BWH on Canterbury Rd (Melbourne)
• $-$ -8,200m² site valued at \$1.8m (inc. developed car park)
• $\sim$ 2,459m² GLA
  • capital estimate \$2m

Council approvals

• maximum 2 tenancies, minimum tenancy 1,000m²
• restricted retail

Status

• pre leasing campaign in progress; tenants other than Bunnings
• construction commencement imminent

Portfolio - capital commitment outlook

Portfolio - prospects for BWP

Ex Bunnings

• organic rollout of 8 to 12 stores pa
• Ex BBC Hardware Ltd (18 acquired by WES via SMI)
• 6 purchased by BWP to date
  • 4 sold by WES on VP basis; more possible
• 7 held by WES
• Ex third party vendors (approximately 70)
• one purchased (Fyshwick, Dec 02)
• more opportunistic purchases possible

Capital Management - overview

• \$156m equity raised post IPO Allan
• \$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 September 18
• preferred range of 20% to 40% (debt to total assets)
• weighted average cost 5.7% (exc. margins)
• facilities from NAB & WBC totalling \$225m
• Distribution reinvestment plan Sure
• currently suspended

Capital Management - gearing on target

• \$167m hedged Dec 04 to Sep 06 inc. Super
• 5.7% weighted ave rate (exc. margins/fees) ∕
• 4.1 yrs weighted ave maturity Service

Financial Performance -DPU growth

Financial Performance - DPU growth analysis

• Late receival of market rent review results (MRR) impact: Super
• 1H04 contribution from 6 MRR booked in 2H04
• 1H04 DPU artificially low, 2H04 DPU artificially high
• 1H05 contribution from 5 MRR will be booked in 2H05
• 1H05 contribution tha (only 3 results known)

			\wearanananananananananananananananananana
	2H03	1H04	2H04	1H05
DPU (cents)
Actual	5.35		5.87	5.79
- "Smoothed" 1	5.35	5.58	5.81	$> 5.81^2$

¹hypothetical reallocation of MRR results ²tba when outstanding 2 MRR known

Outlook

• Acquisition opportunities ex Bunnings rollout (8 to 12 pa) Service
• ex BBC properties
  • ex third party owners
  • New Zealand rollout (target 25)
  • 3000 Series rollout 4 pa (target)
• Rent reviews an ongoing process Service
• Revaluations each property at least every 3 years Service

---------------------------------------	2004/05 2005/06 2006/07	2007/08	2008/09
Rent reviews
Revaluations			,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Financial performance - solid total returns

Disclaimer

To the maximum permitted by law, Bunnings Property Management Limited disclaims all liability and responsibility for any direct or indirect loss or damage that may be suffered by any person through relying on anything contained in or omitted from this presentation.