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GOODMAN GROUP Interim / Quarterly Report 2011

Feb 23, 2011

64998_rns_2011-02-23_b6f1354c-3f96-41d0-a329-25e423e47746.pdf

Interim / Quarterly Report

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Goodman Group

Results for the half-year ended 31 December 2010

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24 February 2011

building momentum + delivering opportunities

1

Important notice and disclaimer

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    • This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL Number 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839)). This document is a presentation of general background information about the Group’s activities current at the date of the presentation. It is information in a summary form and does not purport to be complete. It is to be read in conjunction with the Goodman Limited Half Year Financial Report lodged with the Australian Securities and Investments Commission and Australian Securities Exchange (ASX) and Goodman Group’s other announcements released to the ASX (available at www.asx.com.au). It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with professional advice, when deciding if an investment is appropriate.
    • This presentation is not an offer or invitation for subscription or purchase of securities or other financial products. This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or to any “US person” (as defined in Regulation S under the US Securities Act of 1933, as amended (Securities Act) (US Person)). Securities may not be offered or sold in the United States or to US Persons absent registration or an exemption from registration. The stapled securities of Goodman Group have not been, and will not be, registered under the Securities Act or the securities laws of any state or jurisdiction of the United States.
    • This announcement contains certain "forward-looking statements". The words "anticipate", "believe", "expect", "project", "forecast", "estimate", "likely", "intend", "should", "could", "may", "target", "plan" and other similar expressions are intended to identify forwardlooking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Due care and attention has been used in the preparation of forecast information. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements.

2

Contents

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    • Section 1 Highlights
    • Section 2 Results overview
    • Section 3
    • Section 4

  • Operational performance

Outlook and summary

+ Appendices

  • IIF transaction update

  • Results analysis

  • Investment

  • Development

  • Management

  • Capital management

3

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Section 1+
Highlights
M7 Business Hub, Australia
4
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Highlights

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    • Operating profit after tax of $170.5 million up 23% on 1HFY10
    • Fully diluted operating EPS of 2.6 cents[1]

  • On target to deliver full year operating profit after tax of $380 million (up 23% on FY10), equating to fully diluted operating EPS of 5.5 cents[2]

  • Half year result delivering 47% of full year EPS guidance[2]

    • Distribution per security of 1.5 cents, representing a 56% payout ratio

  • Anticipating a 60% payout ratio for the full year, consistent with the Group’s distribution policy

    • Delivering on strategy of prudently exploring growth opportunities and building operating momentum as markets recover
    • Offshore operations contributed 48% of EBIT - expected to grow to in excess of 50% in the second half

  • Asia and Europe expected to contribute strongly to EBIT growth

    • Investment EBIT contributing 77% of earnings, 23% from Development and Management

  • Anticipating 30-35% FY11 EBIT contribution from Development and Management

  • Expecting Development and Management to make 40-50% EBIT contribution over the medium term, as these segments return to normalised levels and additional growth opportunities are pursued

    • Continue to strengthen balance sheet and liquidity position, while diversifying funding sources

  • Inaugural US$325 million senior, unsecured note issue in the US 144A/Reg S bond market

  • Refinanced / raised A$2.1bn across managed fund platform

  • Continue to look at all debt capital markets for diversity and tenor

  • 2.6 cents on a fully diluted basis adjusted for the CIC hybrid securities and options - this equates to 2.7 cents on an undiluted basis 2. On a fully diluted basis adjusted for the CIC hybrid securities and options

5

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Highlights

+ Increased occupancy across all markets up 2% to 95% from June 2010
Own + Retention rate of 72% and WALE of 5.5 years
+ Leasing rental growth of 3.4% achieved
+ $0.7 million of new commitments across 9 countries with WIP at $1.5 billion
+ $10 billion development pipeline has been restocked with efficient capital management
+ 89% of commitments pre-sold or in funds, balance in negotiation for third party take-out,
Develop + 97% of new projects fully pre-committed
+ WIP of 0.9 million sqm with 0.3 million sqm development across Asia, 0.3 million sqm in Europe and the balance in
Australia and New Zealand
+ Langfang development progressing through master planning process – targeting formal Provincial level government
approval by end of 2011
+ AUM stable on a constant currency basis
+ $1.5 billion of new committed equity for managed funds
Manage + Attracting third party capital and leveraging investment partnerships to underpin opportunistic growth
+ Forecasting strong AUM growth over next 12 months – proposed trust scheme to acquire IIF’s $2.5 billion property
portfolio and actively exploring opportunities to increase the size and scale of Asian and European operations
+ Cornerstone interests reducing to longer term target of 20%
+ Balance sheet gearing maintained at 24.5%
Capital + ICR enhanced to 4.8x
management + $1.45 billion of liquidity with all debt maturities covered to FY2013
+ Successfully arranged $549 million of new debt facilities increasing debt maturity profile to 3.7 years
6

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Section 2+
Results overview
Millennium Centre, New Zealand
7
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Results overview

+ Underlying fundamentals showing positive momentum

  • First half operating performance supports upper end of guidance for full year

  • Property valuations stable with liquidity returning to all markets

  • Positive movement in derivative mark to markets

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1H FY11
Operating earnings ($M) 170.5
Statutory accounting profit ($M) 226.0
Operating earnings per security (cents)1 2.7
Operating earnings per security (fully diluted) (cents)2 2.6
Distribution per security (cents) 1.5
Payout ratio (%) 56
As at
31 Dec 2010
NTA3 $0.47
Gearing (balance sheet)4 24.5%
Available liquidity ($B) $1.45
WACR (look through) 7.8%

  1. Operating earnings and EPS excludes unrealised gains on property revaluations, AIFRS and other non-cash adjustments and calculated based on weighted average securities of 6,353.3 million

  2. Calculated based on weighted fully diluted average securities of 7,248.0 million and excludes treasury (ESAP) securities

  3. Diluted for CIC Hybrid securities and CIC Options

  4. Calculated as net debt less cash / total assets less cash

8

Profit and loss

+ Half year operating profit of $170.5 million

  - 7% movement in A$ offset by hedges

  • 7.0% ROA in investment, improving occupancy and rents

  • Development margins for work in progress >15% ROC

  • AUM reduction due to FX

  • Services margin ~ 60%

  • Development ROA increasing

    • Represents operating EPS of 2.7 cents per security (2.6 cents fully diluted) and DPS of 1.5 cents per security

+ ICR at 4.8x up from 3.8x at FY10

+ $380 million forecast earnings

  • 65 - 70% Investment EBIT contribution

  • 30 - 35% Management and Development EBIT contribution

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31 December 2010 income statement

1H FY10 1H FY11
$m $m
Investment (look through) 236.1 224.5
Management 26.0 30.6
Development 6.5 35.7
Unallocated operating expenses (13.7) (13.5)
Operating EBITDA (look through) 254.9 277.3
Operating EBIT (look through) 250.7 274.6
Look through interest and tax adjustment1 (70.6) (59.7)
Operating EBIT 180.1 214.9
Net borrowing costs (19.4) (2.4)
Tax benefit/(expense) (4.8) (5.9)
Operating PAT (pre minorities) 155.9 206.6
Minorities2 (17.4) (36.1)
Operating PAT (post minorities) 138.5 170.5
Weighted average securities (undiluted) (million) 4,912.1 6,353.3
Operating EPS (cps) 2.8 2.7
Non operating items3
Valuation movements (551.8) (10.2)
Derivative mark to market 8.8 73.5
Non-operating and non-cash items (95.8) (7.8)
Statutory profit/(loss) (500.3) 226.0
  1. Reflects adjustment to GMG proportionate share of Fund interest and tax 2. Includes Goodman PLUS and CIC Hybrid Securities 3. Refer Appendix 2 slide 31

9

Balance sheet

    • Strong balance sheet maintained through prudent capital management initiatives

  • Actively recycling development holdings, third party capital utilisation and monetising land

  • Minimal net investment into funds

    • Revaluations stable with liquidity returning to all markets
    • $1.45 billion of liquidity covering maturities to FY2013
    • Key metrics:

  • Gearing of 24.5% (35.9% look through)

  • NTA of $0.47 per security[3]

    • FX movements have resulted in $191 million reduction in net asset value
    • Derivatives positive mark to market movement of $109.9 million still in net liability position ($50.1 million at Group and $115.5 million look through) that will be amortised over life of the instruments

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31 December 2010 balance sheet

30 Jun 2010 31 Dec 2010
$m $m
Stabilised assets 2,310 2,250
Fund cornerstones1 2,372 2,383
Development holdings 1,245 1,161
Intangibles 929 826
Cash 515 221
Other assets 227 259
Total assets 7,598 7,100
Interest bearing liabilities (2,276) (1,910)
Other liabilities (600) (489)
Total liabilities (2,876) (2,399)
Minorities (798) (573)
Net assets (post minorities) 3,924 4,128
Net asset value (per security) 0.62 0.60
Net tangible assets (per security)2 0.47 0.48
Net tangible assets (per security) – diluted3 0.46 0.47
Balance sheet gearing4 24.9 24.5

  1. Includes Goodman’s investments in its managed funds and its other investments

  2. Undiluted for CIC Hybrid securities and options based on 6,856.7 million securities on issue

  3. Calculated based on fully diluted securities of 7,751.4 million and excludes treasury (ESAP) securities 4. Calculated as net debt less cash / total assets less cash

10

Property valuations

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+ Revaluations stable with liquidity returning to all markets

    • Property valuation indices in major operating markets signal a stabilisation of asset values with positive momentum apparent in Hong Kong and China
    • WACR of 7.8% - down from 7.9% as at 30 June 2010
    • Strong investor demand for prime investment assets with prime yields firming by up to 25 basis points

31 December 2010 property valuations (look through)

Book value
(GMG exposure)		 P&L
Movement
Since
June 2010		 WACR WACR
movement
since June
$ million $ million % %
Australia 4,185 15 8.2 -
New Zealand 210 - 8.6 -
Hong Kong 347 8 6.8 (0.2)
China 108 (5) 8.7 (0.5)
Japan 164 6 6.0 -
UK 1,413 (16) 7.8 -
Continental Europe 760 (6) 7.7 (0.2)
Total / Average 7,187 2 7.8 (0.1)

11

Highbrook Business Park, New Zealand 12

Investment

    • Retained high quality and well located property portfolio - which remains a core activity of the Group
    • Overall quality and cash flows remain sound

  • Occupancy increased to 95%

  • Minimal arrears

  • Retention rate at 72%

    • Improved occupancy and rent evident in all markets supported by strength of customer relationships

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Investment ($m) 1H FY10 1H FY11
Direct 85.4 81.7
Cornerstones 150.7 142.8
Look through EBITDA 236.1 224.5
Key metrics1 1H FY10 1H FY11
WACR (%) 8.1 7.8
WALE (yrs) 5.6 5.5
Customer retention (%) 71 72
Occupancy (%) 94 95

  1. Key metrics shown in the above table relate to Goodman and managed fund properties

    • Investments (direct or in Funds) to grow organically through development pipeline and opportunistically when appropriate

13

Development

    • Development remains a key component of the Goodman business model

  • Built-out value of all projects under Group control estimated to exceed $10 billion

+ Development activity and enquiry increasing in all core markets

  • $734 million of new commitments to long term occupiers with on average greater than 11 year lease terms

  • Third party funding secured for 77% of projects, with the balance under negotiation or identified

  • Active negotiations in core Continental European markets exceeding 225,000 sqm

  • Langfang site now covers 10 square kilometres and is progressing through the master planning stage – targeting formal Provincial level government approval by end of 2011

  • Growing commitment to China with over 400,000 sqm of commenced developments and secured land sites

    • End value of current WIP has increased to $1.5 billion with 33 projects in 9 countries

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Development ($m) 1H FY10 1H FY11
Revenue 19.5 48.7
EBITDA 6.5 35.7
Key metrics 1H FY10 1H FY11
Work in progress ($bn) 1.0 1.5
Work in progress (m sqm) 0.4 0.9
Number of developments 16 33
Balance sheet development (%) 33 23
Pre-commitment (%) 61 76
Yield (%) 9.1 9.0
Work in progress (end value) $B
Opening (June 2010) 1.3
Completions (0.4)
Commitments 0.7
FX (0.1)
Closing (December 2010) 1.5
    • Proven capability, customer confidence and strength of relationships reflected in major developments announced over 1HFY11

14

Development projects

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+ Major development projects Australia & New Zealand

Australia – Bungarribee Industrial Estate

Customer Metcash
Area 82,015 sqm
Lease term 15 years
Contracted owner GAIF / GADF

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Australia – Oakdale Industrial Estate

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Customer DHL
Area 36,165 sqm
Lease term 10 years
GAIF /
Contracted owner
Brickworks
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Australia – Stockyards Industrial Estate

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Customer Coca Cola Amatil
Area 41,378 sqm
Lease term 15 years
Contracted owner GAIF

Australia – Banfield Distribution Centre

Customer Kmart
Area 76,735 sqm
Lease term 15 years
Contracted owner GADF

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New Zealand – M20 Business Park

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Customer Bridgestone
Area 4,900 sqm
Lease term 8 years
Contracted owner GMT
Australia – Green Sqquare Industrial Estate
Australian Red
Customer Cross Blood
Service
Area 12,475 sqm
Lease term 20 years
Contracted owner 3 [rd] Party
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Australia – Green Sqquare Industrial Estate

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Note: Artist’s impressions may be subject to change

15

Development projects

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+ Major development projects UK & Europe

France – Saint-Mard

Customer French retailer
Area 50,000 sqm
Lease term 9 years
Contracted owner GMG

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Germany – Malsch

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Seifert Logistik
Customer Dienstleistung
GmbH
Area 46,032 sqm
Lease term 7 years
Contracted owner GELF
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Poland – Cracow Airport Logistics

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Customer Various
Area 14,025 sqm
Lease term 5 years
Contracted owner GMG / GELF
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Note: Artist’s impressions may be subject to change

UK – Andover

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Customer Co-op
Area 43,468 sqm
Lease term 20 years
Contracted owner 3 [rd] Party
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Germany – Werne

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Customer Pharbil
Area 16,931 sqm
Lease term 6 years
Contracted owner GELF
France – Saran
Customer Amazon
23,402 sqm
Area
extension
Lease term 6 years
Contracted owner GELF
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16

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Asian regional perspective

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  1. J-REP is Goodman’s platform in Japan and is majority owned by a 50/50 strategic alliance between Goodman and Macquarie (Macquarie Goodman Japan) 2. Includes Beijing Airport Logistics Park

Note: Artist’s impressions may be subject to change

17

Development projects

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+ Major development projects Asia

China – Beijing Airport Logistics Park

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Land area 81,847 sqm
Lettable area Phase 2: 26,048 sqm
Contracted
GCLH
owner
Expected
March 2012
completion date
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China – Kunshan Lujia Logistics Centre

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Lettable area 36,415 sqm
Contracted
GCLH
owner
Expected
May 2011
completion date
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Japan – JREP Logistation Moriya

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Nippon Express Co.,
Customer
Ltd.
Lettable area 33,185 sqm
Lease term 10 years
Contracted owner Third Party
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China – Pudong Airport Logistic Park

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Land area 172,260 sqm
Phase 1: 42,677 sqm
Lettable area
Phase 2: 55,846 sqm
Contracted
GMG
owner
Phase 1
Construction starts: 2Q
2011
Expected
completion Practical completion: 3Q
dates 2012
Phase 2
Completion by end 2014
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Hong Kong – Interlink

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Various – DHL, Yusen,
Customers Air & Sea Service,
Bel Logistics
Lettable area 224,000 sqm
74% pre-committed
Leasing
including current HOA
Contracted
GMG / GHKLF
owner
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Note: Artist’s impressions may be subject to change

18

Management

    • External Assets Under Management (AUM) unchanged on a constant currency basis ($1.0 billion movement resulting from FX)
    • Growth in AUM expected to be strong moving forward

  • $2.3 billion of available debt and equity across managed funds

  • Subject to successful completion, IIF acquisition will enhance the Group’s funds management platform with additional $2.6 billion of AUM

  • Development program in China and Europe to drive organic growth opportunities

  • Reorganisation and rebranding of Japanese business progressing

  • Positive commitments from global investors for core real estate assets evident in Asian and European markets

    • Strong private equity real estate investor demand for high quality product

  • ‘Core’ product remains key priority and appetite for risk remains low

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Management ($m) 1H FY10 1H FY11
Fund management fees 35.5 30.3
Property service fees 26.2 29.5
Revenue 61.7 59.8
EBITDA 26.0 30.6
Key metrics 1H FY10 1H FY11
Number of funds 9 11
External AUM (end of period) ($bn) 12.6 11.6
Change from Change from
3rd party AUM (1H FY11) $bn FY10
pre FX
Australia 4.3 -
Asia 2.1 1%
Europe 2.1 -
UK 1.9 (5%)
New Zealand 1.2 2%

  • Limited distressed opportunities across logistics space globally

    • EBITDA in line with expectation

  • MER > 50 bps of AUM / margin improving ~ 60%

  • Earnings impacted by foreign currency movements ($2 million)

19

Management - AUM

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  • Major new initiatives completed during the half include:

  • Completed €300 million GELF equity raising

  • Completed $1.5 billion refinance of GAIF debt facilities

  • Recommended offer to acquire 100% of IIF

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20

Management platform

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Goodman’s five largest Fund cornerstones Goodman’s five largest Fund cornerstones Goodman’s five largest Fund cornerstones Goodman’s five largest Fund cornerstones Goodman’s five largest Fund cornerstones
GAIF ABPP GELF GHKLF GMT1
Total assets $4.4bn $1.9bn $1.8bn $1.3bn $1.2bn
GMG co-investment 43.7% 35.7% 27.9% 20.0% 16.5%2
GMG co-investment $1.1bn $0.3bn $0.3bn $0.2bn $0.1bn2
Number of properties 107 28 83 15 21
Occupancy 96% 90% 96% 96% 95%
Weighted average lease expiry 6.4 yrs 7.8 yrs4 4.9 yrs4 2.6 yrs 5.5 yrs
Gearing 37.7% 46.3% 34.2% 26.7% 37.0%
Weighted average debt expiry 4.1 yrs 2.6 yrs 2.0 yrs 4.0 yrs 3.7 yrs2
WACR 8.3% 7.6% 7.7% 6.8% 8.6%
WACR at covenant3 10.7% 10.7% 14.0% 12.3% Not disclosed
Cap rate expansion to breach 240 bps 310 bps 630 bps 550 bps Not disclosed

  1. As at 30 September 2010 (as disclosed to the New Zealand stock exchange in November 2010)

  2. As at 31 December 2010

  3. Based on Fund gearing covenants that are currently most capable of triggering an event of default in each respective Fund 4. WALE of leased portfolio to next break as at 31 December 2010

21

22

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Outlook and summary

+ Maintain position as a strong industrial property and business partner in all markets we operate in
+ Expand relationships with major investment partners to capture opportunities
Strategy
+ Focus on higher and better use to maximise development returns
+ Recycle assets when opportunistic pricing arises
+ Positive equity commitments for core real estate assets in Asian and European markets
+ Western European development demand exceeding expectations
Outlook + Growing commitment to China developments
+ Development and Management activities growing to 40 – 50% of EBIT contribution over the medium term
+ Offshore businesses growing to over 50% in the short term
Capital + Maintain gearing at current levels and pursue further diversification of funding sources
management + Continued mitigation of take-out and funding risk via pre-sales, development JVs and turn-key projects
+ Proven capability, global operating platform, extensive relationships with investment partners and customers, provides
leading market position, strong platform for growth and ability to explore high quality opportunities
+ Benefiting from global equity partners investing with specialised property operating businesses
Summary + Half year result delivering 47% of full year EPS guidance1
+ Full year earnings guidance of 5.51 cents per security and operating profit after tax of $380 million
  1. On a fully diluted basis adjusted for the CIC hybrid securities and options

23

24

IIF transaction update

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    • The IML Independent Directors have unanimously recommended that Unitholders vote in favour of the transaction in the absence of a superior competing proposal
    • Transaction continues to progress:

  • Scheme booklet has been sent to IIF Unitholders for consideration – Independent Expert’s report concludes that the transaction is fair and reasonable and in the best interests of Unitholders

  • IIF Unitholder meeting scheduled for 17 March 2011 – transaction requires the approval of 75% of Unitholders’ votes[1]

    • If the proposal is approved by IIF Unitholders, the expected Implementation date[2] (date on which the proposal will come into effect) is 29 March 2011

  • The Resolutions include a special resolution which must be passed by at least 75% of the votes cast being voted in favour – remaining two resolutions require more than 50% of the votes cast in favour 2. Dates are indicative only and subject to change

25

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A endix 2+
pp
Results analysis
Kobe, Japan
26
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Profit and loss

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27

Profit and loss (cont)

GMG results Half Year ended Half Year ended Increase /
31 Dec 2009 31 Dec 2010 (decrease)
$M $M $M
Property investment1 165.5 164.8 (0.7)
Management services2 54.8 50.6 (4.2)
Development 19.5 48.7 29.2
Operating revenue net of property expenses 239.8 264.1 24.3
Unrealised (losses)/gains on investment properties (478.3) 5.8 484.1
Non-operatingincome (43.8) (1.4) 42.4
Total income (282.3) 268.5 550.8
Expenses from operations (59.7) (55.6) 4.1
Impairment losses (73.5) (16.0) 57.5
Net interest expense (62.6) 71.1 133.7
Income tax (expense) / credit – current (4.8) (5.9) (1.1)
Minorityinterests (17.4) (36.1) (18.7)
Profit after tax attributable to Securityholders (500.3) 226.0 726.3
Add net loss from fair value adjustments on investment properties 195.9 2.9 (193.0)
Add unrealised loss/(gain) included in share of net results of equity accounted investments 282.4 (8.7) (291.1)
Add impairment loss on investments 73.5 16.0 (57.5)
Straight-ling of rent and amortisation of lease incentives 1.5 (0.6) (2.1)
Employee LTIP - 6.4 6.4
Other non-operating items3 42.3 2.0 (40.3)
Unrealised (gains)/losses on fair value of derivatives (8.8) (73.5) (64.7)
Non-operatingborrowingcosts 52.0 - (52.0)
Operating profit available for distribution 138.5 170.5 32.0
Operating basic earnings per security (cents) 2.8 2.7 (0.1)
Operating basic earnings per security (cents) – diluted 2.6 2.6 -
Distributionper security (cents) 1.50 1.50 -
Weighted average number of securities – EPS4 (million) 4,912.1 6,353.3 1,441.2
Weighted average number of securities – EPS4 (million)– diluted 5,829.9 7,248.0 1,418.1

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  1. Excludes straight-lining of rent and amortisation of lease incentives (non-operating income item)

  2. Excludes property services fees gross up of $6.9 million in 1H FY2010 and $9.2 million in 1H FY2011

  3. Refer to slide 31 for further information for 1H FY2010

  4. Excludes weighted average number of treasury (ESAP) securities on issue

28

Profit and loss (cont)

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+ Total income by business segment for the half year ended 31 December 2010

Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1
$M
$M
$M
$M
$M
$M
Distributions from investments
Income from disposal of inventories
Fund management income
Property services income
Development management income
Gross property income
Net loss from fair value adjustments on investment properties
Net gain on disposal of investment properties
Net gain on disposal of controlled entities
Share of net results of equity accounted investments
Net (loss)/gain on disposal of equity investments		 14.5
26.1
30.3
29.5
113.6
112.3
(2.9)
0.7
7.2
96.4
(1.6)		 14.5
111.7
68.6		 30.1
29.5
0.2		 26.1
0.2
113.6
0.7
6.6
18.4
1.5		 0.6
(2.9)
0.6
9.22
(3.1)
Total income 426.1 194.8 59.8 167.1 4.4
Development and property expenses and inventory cost of sales
Operating expenses
Impairment losses		 (148.4)
(64.8)
(16.0)		 (30.0) (29.2) (118.4)
(13.0)		 (16.2) (6.4)
(16.0)
EBIT 196.9 164.8 30.6 35.7 (16.2) (18.0)
Look through NPI adjustment (Goodman share of interest and tax) 59.7
Look through operating EBIT 224.5 30.6 35.7 (16.2)

  1. For reconciliation of non-operating and non-cash items refer to slide 31

  2. Includes share of associate and JVEs property valuation gain of $4.8 million, share of associate and JVE unrealised derivative gain $3.9 million, share of associate and JVEs profit on disposal of investment properties $0.1 million and share of impairment reversals in JVEs $0.4 million

29

Profit and loss (cont)

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Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-operating
items1
$M
$M
$M
$M
$M
$M
EBIT – per statutory accounts 196.9 164.8 30.6 35.7 (16.2) (18.0)
Valuation movement1
Non-operating and non-cash items1		 10.2
7.8		 10.2
7.8
Operating EBIT 214.9 164.8 30.6 35.7 (16.2) -
Net financing costs (statutory)
Add: fair value adjustments on derivative instruments		 71.1
(73.5)		 5.1 (7.5) 73.5
(73.5)
Net financing costs (operating)
Income tax expense
Minorities		 (2.4)
(5.9)
(36.1)		 5.1 (7.5)
(5.9)
(36.1)
Operating profit available for distribution 170.5 164.8 30.6 40.8 (65.7) -
Total distribution paid 102.9
  1. For reconciliation of non-operating items refer to slide 31

30

Reconciliation non-operating items

Non-operating Items in statutory profit & loss Half Year ended
31 Dec 2010
$M $M
Property valuation
Net loss from fair value adjustments on investment properties (2.9)
Share of net loss from fair value adjustments on investment properties in associates (0.5)
Share of netgain from fair value adjustments on investmentproperties injoint ventures 5.3
Subtotal 1.9
Impairment losses
Impairment – inventories (0.6)
Impairment – receivables (5.9)
Impairment – other financial assets (0.9)
Impairment – intangible assets (8.6)
Subtotal (16.0)
Mark to market derivatives
Fair value adjustments on derivative instruments – GMG 73.5
Fair value adjustments on derivative instruments – associates 6.0
Fair value adjustments on derivative instruments –joint ventures (2.1)
Subtotal 77.4
Profits/(losses) on disposal of investment properties by associates and joint ventures
New Zealand (GMT) 0.2
Asia(MGJ) (0.1)
Subtotal 0.1
Other non-cash / non-operating items
Capital profits not distributed 0.9
Straight-lining rental income 0.6
Share based payment expense (6.4)
Loss on dilution of investment in associate (3.4)
Share of impairment reversals in JVEs 0.4
Subtotal (7.9)
TOTAL 55.5

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31

Financial position

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+ Headline gearing of 24.5%

Direct Assets
$M
Developments
$M
Investments
$M
As at 31 December 2010
Other
$M		 Total
$M
220.7
Cash		 220.7
237.9
17.8
207.1
Receivables		 462.8
422.5
Inventories		 422.5
2,249.9
470.4
Investment properties		 2,720.3
2,244.8
Investments accounted for using equity method		 2,244.8
120.6
Other financial assets		 120.6
Intangibles
826.0		 826.0
30.3
Other assets
52.0		 82.3
2,249.9
1,161.1
2,383.2
Total assets
1,305.8		 7,100.0
Interest bearing liabilities 1,909.5
Other liabilities 489.6
Total liabilities 2,399.1
Net assets/(liabilities) 4,700.9
Gearing1 24.5%
NTA (per security)2 $0.48
551.8
1,722.1
1,928.4
Asia Pacific		 4,202.3
609.3
661.1
321.5
Europe		 1,591.9

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  1. Gearing calculation based on debt (net of cash) over total assets (net of cash)

  2. Calculated based on 6,856.7 million number securities on issue less 36.3 million Treasury securities

32

Gearing bridge

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+ 30 June 2010 to 31 December 2010

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33

Net tangible assets

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+ Movement in net tangible assets for the half year ended 31 December 2010

Net tangible asset reconciliation $M
$M
Per security
Total equity at 1 July 2010 4,721.7
0.75
Foreign exchange
Valuation of non-current assets during the year
Valuation of investments properties
Valuation movements in associates and JVEs
Valuation of investments (includes IIF)
Impairment of intangibles and other assets
Movements in equity
Equity issues (net of issue costs and effect of ESAP and additional securities)
Movement in retained earnings, reserves (and other AIFRS adjustments)
Change in fair value of derivatives
Attributable to minority interests (includes Goodman PLUS and CIC Hybrid)		 (0.03)
(190.7)
(2.9)
8.7
4.8
(16.0)
(5.4)
-
225.0
(0.03)
176.1
0.03
35.3
0.01
(261.1)
(0.04)
Total equity as at 31 December 2010 4,700.9
0.69
Less Minorities
Less Intangibles		 (0.09)
(573.1)
(826.0)
(0.12)
Net tangible assets at 31 December 20101 3,301.8
0.48
Net tangible assets at 31 December 2010 – diluted2 3,655.3
0.47
  1. Calculated on 6,856.7 million securities being closing securities on issue of 6,893.0 million less 36.3 million securities related to ESAP
  1. Diluted for CIC options and hybrid, calculation based on fully diluted securities of 7,751.4 million

34

Net tangible asset bridge

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+ For half year ended 31 December 2010

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1
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  1. Calculated on 6,856.7 million securities being closing securities on issue of 6,893.0 million less 36.3 million securities related to ESAP and excludes minority interest

35

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Intangibles, derivatives and currency

    • Intangible impairment of $8.6 million relates to UK Business Parks and Logistics

Intangibles – segment carrying values

Adjusted for
Book value impairment Book value
30 June 2010 and FX 31 Dec 2010
$m $m $m
Continental Europe 570 (44) 526
UK Business Parks 193 (33) 160
UK Logistics 105 (17) 88
Australia - - -
New Zealand 5 - 5
Hong Kong 24 (4) 20
China 32 (5) 27
Total 929 (103) 826
    • Positive FX and interest rate movements have resulted in better gearing and positive mark to market movement but remain a drag on NTA of 2 cps

  • Cost of “out of the money” interest rate hedges will be spread over the life of the derivatives and have been factored into forecasts

1H FY11 derivative movements

    • No near term liquidity events from maturing cross currency swaps with maturities between 2012 to 2020
1H FY11 net movement 1H FY11 net movement 1H FY11 net movement Net asset/(liability) as at Net asset/(liability) as at Net asset/(liability) as at
from FY101
$m		 31 Dec 2010
$m
GMG Funds Total GMG Funds Total
Interest rate hedges (Group) 34.8 26.3 61.1 (122.3) (65.4) (187.7)
Cross currency swaps 69.9 - 69.9 59.9 - 59.9
Forward exchange contracts 5.2 - 5.2 12.3 - 12.3
Total 109.9 26.3 136.2 (50.1) (65.4) (115.5)
  1. Of the net movement, $77.4 million is reflected in the income statement.

36

Interlink, Hong Kong 37

Leasing

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    • Leasing rental growth of 3.4% achieved
    • ~1 million sqm leased during the first half
    • Minimal rental arrears and tenant defaults

+ Like on like property income +2.2% on direct portfolio

Division Leasing area (sqm) Net annual rent (A$m) Average lease term (years) Occupancy at 31 Dec 2010 (%)
Australia – Direct 69,171 10.3 4.0 97
Australia – GAIF 192,640 18.5 5.2 96
UK – ABPP & Colworth 16,215 5.0 6.0 90
UK - GMG 45,440 1.8 0.5 94
Europe – GELF 284,570 15.3 4.5 96
Europe – GMG 15,644 1.4 4.8 51
Hong Kong – GHKLF 190,696 18.5 2.3 96
China – GCLH 18,030 7.4 1.4 99
New Zealand – GMT 111,115 10.0 6.2 951
Europe - GPH 42,176 1.6 2.0 100
Europe - GEBPF 18,121 2.2 4.7 79
Total 1,003,818 92.0 4.1
  1. As at 30 September 2010 (as disclosed to the New Zealand stock exchange in November 2010)

38

Customers

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  1. Includes customers of GMG and its managed funds and is based on net rental income

  2. Everything Everywhere Ltd is the consolidation of T-mobile and Orange

39

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Direct portfolio detail - Australia

Key metrics[1]

Portfolio snapshot

Total assets A$1.9 billion
Customers 229
Number of properties 31
Occupancy 97.1%
Weighted average cap rate 8.0%
    • 31 properties with a total value of $1.9 billion located across key Australian markets

    • Leasing deals remain strong across the portfolio

    • 69,171 sqm ($10.3 million net annual rental) of existing space leased

    • customer retention 73% (rolling 12 months)

    • average portfolio valuation cap rate of 8.0%

    • 97% occupancy and a weighted average lease expiry of

  • 4.1 years

Long-dated WALE of 4.1 years (by net income)[1]

Top 10 customers make up 30% of portfolio income[1]

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  1. As at 31 December 2010

40

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Direct portfolio detail - UK

Key metrics[1]

Portfolio snapshot

Total assets A$0.3 billion
Customers 12
Number of properties 11
Occupancy 94.1%2
Weighted average cap rate 7.8%
    • Occupancy at 94.1%[2]
    • Vacancy relates to one property
    • Strong WALE of 6.4 years
    • Cap rates stable with current WACR of 7.8%

Long-dated WALE of 6.4 years (by net income)[1]

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Top 10 customers make up 90% of portfolio income[1]

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  1. As at 31 December 2010

  2. Excludes one property that is currently under option for sale to an occupier, including this property, occupancy would decrease to 86%

41

Belleville Logistics Centre, France42

Developments

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1HFY11 Developments Completions Commitments Work in progress
Value ($M) 356 734 1,485
Area (m sqm) 0.2 0.5 0.9
Yield (%) 9.9 8.5 9.0
Pre-committed (%) 100 97 76
Weighted Average Lease Term (years) 10.6 11.2 9.8
Development for Third Parties or Funds (%) 94 89 77
Asia Pacific (%) 39 65 69
UK/Europe (%) 61 35 31

+ Statistics excluding Interlink (from table above)

  • Work in Progress - pre-commitments increase to 96%

  • Work in Progress - development for third parties and Funds increases to 93%

Work in progress On balance sheet Third party funds Total end value Third party funds
by region end value end value % of total
$M $M $M
Asia Pacific 283 745 1,028 73
Europe 55 402 457 88
Total 338 1,147 1,485 77

43

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Developments

+ The Group has a development pipeline in excess of $10 billion

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  • Across Group and Funds

  • Based on currency as at 31 December 2010

  • Allocated as Asia Pacific $4 billion and Europe $6 billion

  • Forecast GLA of over 6.5 million sqm

  • Development timeframe in excess of 10 years

  • Land bank restocked with prudent capital management (Off balance sheet, options)

+ The Group’s development future cash commitments

Commitments as at 31 December 2010 $M
Gross GMG cost to complete 266
Less pre-sold1cost to complete (117)
Net GMG cost to complete 149
Net GMG managed funds cost to complete 404

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  1. Presold projects are reimbursed by instalments throughout the project or at practical completion of the project.

44

Uxbridge, United Kingdom 45

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Goodman Australia Industrial Fund

Key metrics[1]

Key events

Total assets A$4.4 billion
Interest bearing liabilities A$1.7 billion
Gearing2 37.7%
Customers 367
Number of properties 107
Occupancy 96%
Weighted average lease expiry3 6.4 years
Weighted average cap rate 8.3%
GMG co-investment 43.7%
GMG co-investment A$1.1 billion
    • Finalised a comprehensive restructure of GAIF’s debt platform

  • Moved to a senior unsecured debt structure

  • Refinanced A$1.5 billion of debt across new bilateral facilities

  • Increased the Fund’s debt maturity profile from 2.2 to 4.1 years

    • Total leasing of approx 192,640 sqm during 1H FY11
    • Asset disposals totalling $45.3 million (before cost)
    • Development commencement across 160,000 sqm of logistics facilities providing an end value of $149.5 million
    • Portfolio average capitalisation rate remains unchanged at 8.3%

Covenant compliance[1,4]

Debt maturity profile[1]

    • Gearing covenant[4]

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----- Start of picture text -----

Actual Headroom
Covenant
20% 25% 30% 35% 40% 45% 50% 55%
----- End of picture text -----

+ Fund ICR covenant[5,6]

==> picture [310 x 56] intentionally omitted <==

----- Start of picture text -----

Actual
Covenant Headroom
1.25x 1.50x 1.75x 2.00x
1. As at 31 December 2010
----- End of picture text -----

  1. Calculated as debt/total assets

  2. Including development assets

  3. Based on Fund covenants that are currently most capable of triggering an event of default in the Fund, excluding 5 small single-asset non-recourse facilities

  4. Covenant increases to ≥1.75x from 1 July 2011

  5. 31 December 2010 position adjusted for net cash and committed capital expenditure

46

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Arlington Business Parks Partnership (UK)

Key events

Key metrics[1]

    • Total leasing of 16,100 sqm (£3.7 million NPI) during 1H FY11 – reduced vacancy to 10%
Total assets A$1.9 billion
Interest bearing liabilities A$0.9 billion
Gearing2 46.3%
Customers 140
Number of active business parks3 28
Occupancy 90%
Weighted average lease expiry4 7.8 years
Weighted average cap rate 7.6%
GMG co-investment 35.7%
GMG co-investment A$0.3 billion
    • Continue to pursue land sales at highest and best use - Hammersmith and Aberdeen disposals of £88.3 million
    • Risk mitigated development pipeline – £91 million development pipeline 100% pre-committed
    • Strong retention rate of 87% with no customer failures

Covenant compliance[2]

    • Gearing covenant[5]

Debt maturity profile[1]

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----- Start of picture text -----

Actual Headroom
Covenant
20% 30% 40% 50% 60% 70% 80%
----- End of picture text -----

==> picture [355 x 166] intentionally omitted <==

    • Fund ICR covenant[6]

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----- Start of picture text -----

Actual
Covenant Headroom
0.75x 1.00x 1.25x 1.50x 1.75x
----- End of picture text -----

  1. As at 31 December 2010

  2. Calculated as net debt/total assets less cash

  3. Comprise 23 active business parks and 5 standalone properties

  4. WALE of leased portfolio to next break as at 31 December 2010

  5. Based on Fund covenants that are currently most capable of triggering an event of default in the Fund, during the term of the CMBS LTV covenant waiver

  6. 12 months forward looking, adjusted for cash collateralisation of incentives

47

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Goodman European Logistics Fund

Key events

Key metrics[1]

    • Completed €300 million rights issue:
Total assets A$1.8 billion
Interest bearing liabilities A$0.6 billion
Gearing2 34.2%
Customers 68
Number of properties 83
Occupancy 96%
Weighted average lease expiry3 4.9 years
Weighted average cap rate 7.7%
GMG co-investment 27.9%
GMG co-investment A$0.3 billion

  • Demand from existing Unitholders totalled €30 million

  • Dutch asset managers, APG (€150 million) and PGGM (€100 million) received their full subscription

  • Goodman subscribed for €20 million (less than the €50 million maximum underwrite)

    • Leased approximately 284,500 sqm of space during 1H FY11 (including developments) with WALE of 4.8 years to next break
    • Commenced new developments in Germany (Werne & Malsch), Poland (Torun II extension) and France (Saran extension) at a total cost of €55.6 million, yielding 7.8%

Covenant compliance[4]

Debt maturity profile[1]

    • Loan to Value covenant[5]

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----- Start of picture text -----

Actual Headroom
Covenant
20% 30% 40% 50% 60% 70%
----- End of picture text -----

    • ICR measure[6]

==> picture [344 x 52] intentionally omitted <==

----- Start of picture text -----

Actual
Covenant Headroom
1.00x 1.50x 2.00x 2.50x 3.00x
----- End of picture text -----

  1. As at 31 December 2010

  2. Calculated as debt / (property assets + cash + JV investments and loans)

  3. WALE of leased portfolio to next break

  4. Based on Fund covenants that are currently most capable of triggering an event of default in the Fund

  5. As at 31 December 2010, adjusted for cash on balance sheet, development capex and committed but uncalled equity

  6. 12 month forward looking for leases with average break date >3.0 years

48

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Goodman Hong Kong Logistics Fund

Key events

Key metrics[1]

    • Approximately 190,700 sqm or 25% of the portfolio leased during 1H FY11 with portfolio occupancy reaching a 18 month high
Total assets A$1.3 billion
Interest bearing liabilities A$0.3 billion
Gearing2 26.7%
Customers 182
Number of properties 15
Occupancy 96%
Weighted average lease expiry 2.6 years
Weighted average cap rate3 6.8%
GMG co-investment 20.0%
GMG co-investment A$0.2 billion
    • Completed disposal of Seaview development for HK$875 million (100% interest)
    • Interlink development

  • Construction progressing well and remains on budget

  • Agreement for lease signed with Bel Logistics and HOA signed with 2 additional customers

  • 74% precommitted including current HOA , enquiry more than remaining space

    • Refinanced HK$1.0 billion of debt facilities for term of 7 years

Covenant compliance[1]

+ LVR covenant[4]

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----- Start of picture text -----

Actual Headroom
Covenant
20% 25% 30% 35% 40% 45% 50% 55%
----- End of picture text -----

+ ICR covenant

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----- Start of picture text -----

Actual
Covenant Headroom
1.00x 1.50x 2.00x 2.50x 3.00x 3.50x
1. As at 31 December 2010
----- End of picture text -----

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----- Start of picture text -----

2. Calculated a total debt / (total assets less JV loan receivable)
----- End of picture text -----

Debt maturity profile[1]

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  1. Stabilised portfolio only

  2. As at 31 December 2010, adjusted for cash on balance sheet and contracted asset sales

49

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Goodman Property Trust

Key metrics[1]

Key events

    • Sound portfolio performance[1]
Total assets A$1.2 billion
Interest bearing liabilities A$0.4 billion
Gearing2 37.0%
Customers 220
Number of properties 21
Occupancy 95%
Weighted average lease expiry 5.5 years
Weighted average cap rate 8.6%
GMG co-investment3 16.5%
GMG co-investment3 A$0.1 billion

  • WALE of 5.5 years

  • 95% occupancy

  • Over 45,000 sqm of space leased to new or existing customers in the quarter ended 30 September 2010

  • Average 2.2% rental growth from CPI, fixed and market rent reviews

    • Capital management programme completed[3]

  • NZ$638 million of bank refinancing (GMT proportionate share NZ$499.5 million) over the last 12 months

  • NZ$45 million seven year wholesale bond issue

Debt maturity profile[3]

  • September and December DRP underwritten, raising NZ$34.3 million to fund development opportunities

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    • Four new development pre-commitments for Bridgestone, Downer, PMP (NZ) Limited[4] , and Plytech International Limited (combined total project cost NZ$22.5 million)
    • 37.0% LVR consistent with target range of 35% to 40%[1]

  • As at 30 September 2010 (as disclosed to the New Zealand stock exchange in November 2010)

  • Calculated as net debt/property assets on GMT main syndicate facility

  • As at 31 December 2010

  • Includes extension and refurbishment of existing premises

50

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----- Start of picture text -----

Appendix 6+
Capital
management
Rainton Bridge, United Kingdom
51
----- End of picture text -----

Group financial covenants

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Covenants Test Covenant Result Headroom
Gearing ratio Net liabilities1 as a percentage of net tangible assets is not
more than60%(reducing to 55% from 30 June 2011)		 60% 30.8% 29.2%
Interest cover ratio EBITDA to interest expense at least2.0x 2.0X 4.8X 2.8X
Secured debt as a percentage of total tangible assets is not
Priority debt more than 5% (however specific permitted uses where ratio is 5% 0.5% 4.5%
either 2.5% or up to 7.5% over the short term)
Net unsecured debt (total unsecured debt less unrestricted
Unencumbered real property
assets		 cash) to be not more than 100% of the amount of
unencumbered real property assets (all unencumbered direct
assets including stabilised assets, development WIP and land		 100% 58.1% 41.9%
bank)
Unencumbered assets Unsecured debt as a percentage of unencumbered assets is
not more than 66.6%		 66.7% 29.4% 37.3%
  1. Net liabilities = total liabilities less cash and excludes trade payables, mark to market derivatives, deferred tax liabilities and provisions for security holder distributions

52

Group liquidity position

    • Cash and available lines of credit of $1,448.7 million at 31 December 2010

    • $220.7 million cash, $1,228.0 million available lines

    • Headline gearing at 24.5% as at 31 December 2010
    • Average Debt Maturity profile of 3.7 years
    • In November 2010, Goodman successfully issued US$325m notes in the United States 144A/Reg S bond market at a fixed coupon of 6.375%, maturing in November 2020

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53

Currency mix

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54

Financial risk management

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+ Financial risk management in line with Group board policy

  • interest risk management:

  • 86% hedged in the first 12 months

  • Weighted average hedge maturity of 4.6 years

  • Weighted average hedge rate of 5.42%[1] vs spot[2] 3.16%

  • Current “all in” net WACD 3.14%

  • FX rates 100% hedged on known net cash flows for 3 years at rates of:

  • HKD (hedge 4.9888, spot 7.8160)

  • NZD (hedge 1.1774, spot 1.3367)

  • Includes the 10 year EMTN £250 million at 9.75% fixed rate and the fixed AUD receiver leg from the cross currency swaps

  • Spot refers 5 year swap market rate as at 22 February 2010

55

Financial risk management

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Interest rate

    • Interest rates are hedged to 86% over next 12 months
    • Weighted average hedge rate of 5.42%[1] vs spot[2] 3.16%

  • NZD – (hedge 8.17%, spot 4.61%)

  • JPY – (hedge 1.09%, spot 0.70%)

  • HKD – (hedge 2.74%, spot 2.24%)

  • GBP – (hedge 8.37%[3] , spot 3.11%)

  • Euro – (hedge 3.72%, spot 2.82%)

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    • Weighted average maturity of 4.6 years
    • “All in” net WACD of 3.14%

  • Includes the 10 year EMTN £250 million at 9.75% fixed rate and the fixed AUD receiver leg from the cross currency swaps

  • Spot refers 5 year swap market rate as at 22 February 2010

  • Includes the 10 year EMTN £250 million at 9.75% fixed rate

56

Financial risk management (cont)

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Interest rate hedging profile

Euro payable
GBP payable
HKD payable
NZD payable
JPY payable
As at June €M
Fixed
rate
%
£M
Fixed1
rate
%
HK$M
Fixed
rate
%
NZ$M
Fixed rate
%
¥M
Fixed
rate
%
2011 (405.0)
3.53
(425.0)
8.08
(1,750.0)
2.90
(114.1)
8.43
(7,000.0)
1.45
2012 (384.1)
3.54
(425.0)
8.20
(1,750.0)
2.90
(110.0)
8.79
(7,226.8)
1.40
2013 (305.0)
3.63
(425.0)
8.20
(1,406.3)
2.76
(110.0)
8.79
(4,500.0)
0.89
2014 (191.1)
3.89
(425.0)
8.20
(760.0)
2.27
(110.0)
8.79
(4,500.0)
0.89
2015 (50.0)
4.50
(437.6)
7.96
(122.1)
1.98
(69.5)
7.30
(4,500.0)
0.89
2016 (50.0)
4.50
(388.7)
8.23
-
-
(50.0)
5.75
(4,229.5)
0.89
2017 (33.3)
4.50
(307.2)
9.03
-
-
(16.2)
5.75
-
-
2018 -
-
-
-
-
-
9.50
(266.0)
-
-
2019 -
-
-
-
-
-
9.78
(11.0)
-
-
  1. Includes the 10 year EMTN £250 million at 9.75% fixed rate

57

Financial risk management (cont)

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Currency hedging profile

Amount Amount
Maturing in Hedge rate payable Hedge rate payable
year ending June
HK$M NZ$M
2011 5.0701 (62.6) 1.1630 (5.3)
2012 4.9885 (62.6) 1.1768 (5.3)
2013 4.9077 (62.6) 1.1932 (5.0)

Foreign currency denominated balance sheet hedging maturity profile

Currency Maturity Weighted average exchange Amount receivable1 Amount payable1
rate
NZ$M 2012 / 2013 1.2413 A$150.7M NZ$187M
HK$M 2011 /2014 / 2015 6.7291 A$291.8M HK$1,950M
¥M 2015 82.2267 A$94.9M ¥7,800M
€M 2015/2016 0.6858 A$248.2M €170M
US$M 2020 0.6174 US$200M £123.5M
US$M 2020 0.7126 US$125M €89.1M
  1. Floating rates apply for the payable and receivable legs for the cross currency swaps except for the US$325m and NZ$102M cross currency where the receivable is at a fixed rate

58

Exchange rates

    • Statement of Financial Position – exchange rates as at 31 December 2010

(31 December 2009 : 0.5581)

  • AUDGBP – 0.6585

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  • (31 December 2009 : 0. 6241)

– AUDEUR – 0.7647 (31 December 2009 : 0. 6241) – AUDHKD – 7.9512 (31 December 2009 : 6.9669) – AUDSGD – 1.3126 (31 December 2009 : 1.2623) – AUDNZD – 1.3171 (31 December 2009 : 1.2354) – AUDUSD – 1.0163 (31 December 2009 : 0.8969) – AUDJPY – 82.8300 (31 December 2009 : 82.820) – AUDCNY – 6.7413 (31 December 2009 : 6.1338)

    • Statement of Financial Performance – average exchange rates for the 6 months to 31 December 2010

– AUDGBP – 0.6038 (31 December 2009 : 0.5324) – AUDEUR – 0.7137 (31 December 2009 : 0.5991) – AUDHKD – 7.3526 (31 December 2009 : 6.7553) – AUDSGD – 1.2567 (31 December 2009 : 1.2333) – AUDNZD – 1.2812 (31 December 2009 : 1.2430) – AUDUSD – 0.9454 (31 December 2009 : 0.8713) – AUDJPY – 79.5325 (31 December 2009 : 79.785) – AUDCNY – 6.3518 (31 December 2009 : 5.9522)

59

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thank+ you

Important Notice This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839)). The details in this presentation provide general information only. It is not intended as investment or financial advice and must not be relied upon as such. You should obtain independent professional advice prior to making any decision. This presentation is not an offer or invitation for subscription or purchase of securities or other financial products. This presentation does not constitute an offer of securities in the United States. Securities may not be offered of sold in the United States unless they are registered under the US Securities Act of 1933 or an exemption from registration is available. Past performance is no indication of future performance. All values are expressed in Australian currency unless otherwise stated. February 2011.

60

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