GOODMAN GROUP — Interim / Quarterly Report 2013

Feb 20, 2013

Results for the half year ended 31 December 2012

==> picture [78 x 78] intentionally omitted <==

Global partner + Global platform

1

Important notice and disclaimer

==> picture [78 x 78] intentionally omitted <==

• • This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071) Goodman Funds Management Limited (ABN 48 067 796 641; AFSL Number 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839) and Goodman Logistics (HK) Limited (Company Number 1700359; ARBN 155911142 – A Hong Kong company with limited liability)). 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 Goodman Group’s other announcements released to 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 uses operating profit and operating EPS to present a clear view of the underlying profit from operations. Operating profit comprises profit attributable to Securityholders, adjusted for property valuations, derivative and foreign currency mark to market and other non-cash or non-recurring items. It is used consistently and without bias year on year for comparability. A reconciliation to statutory profit is provided in summary on page 10 of this Presentation and in detail on page 3 of the Directors’ Report as announced on ASX and available from the Investor Centre at www.goodman.com.
• • This document 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. Neither the Group, nor any other person, gives any representation, warranty, assurance or guarantee that the occurrence of the events expressed or implied in any forward looking-statements in this document will actually occur.
• • This document does not constitute an offer, invitation, solicitation, recommendation, advice or recommendation with respect to the issue, purchase, or sale of any stapled securities or other financial products in the Group.
• • This document 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.

2

Contents

==> picture [78 x 78] intentionally omitted <==

+ Section 1 Highlights

• • Section 2 Results overview
• • Section 3 Operational performance
• • Section 4 Outlook and summary

• Appendices

• Results analysis

• Investment

• Development

• Management

• Capital management

3

==> picture [694 x 499] intentionally omitted <==

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

Section 1+ Section 1+
Highlights
Highlights
Goodman Interlink, Hong Kong
Erfurt, Zalando, Germany
----- End of picture text -----

4

Highlights

==> picture [78 x 78] intentionally omitted <==

+ Focused strategy delivering sustainable growth:

• Operating profit[1] of $266 million, up 16% on 1H FY12

• Operating EPS[1] of 16.2 cents[2] , up 6% on 1H FY12

• Distribution per security of 9.7 cents, up 8% on 1H FY12

• Total assets under management of $21 billion, up 10% on 1H FY12

+ Global operating platform:

• Established operations in key global markets

• Provides diversity and access to a broad range of growth opportunities

• Established Brazilian joint venture WTGoodman, with forecast total end value of $1.1billion across four development sites in Sao Paulo and Rio de Janeiro

• Settlement on the consolidation of the Japan management platform to occur in March 2013

+ Strength and focus of Group’s strategy delivering results :

• The ‘active’ developments and management businesses contributed 42% of operating EBIT, trending to 50% over medium term

• Development book can grow to $2.5 billion over the short term, driven by structural changes in the occupier market and entry into the Americas

• Business growth accelerating at a faster pace in China, Continental Europe and Australia driven by strong development demand with over $1.1 billion of new commitments in 1H FY13

• Enquiry levels reflect the improving macro economic sentiment coming out of China and US

• Quality asset management team executing on day to day operational activities

• Operating profit and operating EPS comprises profit attributable to security holders adjusted for property valuations, derivative and foreign currency mark to market and other non-cash or non-recurring items

• Calculated based on weighted average diluted securities of 1,636.7 million which includes 5.8 million LTIP securities which have achieved the required performance hurdles and will vest equally in September 2013 and September 2014

5

Highlights

==> picture [78 x 78] intentionally omitted <==

+ Investment demand from global capital partners remains strong:

• Capital partnering approach to new and existing markets: raised $1.8 billion of new third party equity in 1H FY13

• Three of the Group’s largest funds extended for between 5 and 7 years

• Contemporary fund management structure aligns investor interests

• Capital partnering approach to investing Goodman capital

• Open and transparent approach to governance, compliance and operation of funds key to attracting global capital

• Fund initiatives key driver of offshore earnings and increased management earnings

+ Prudent capital management enables the Group to take advantage of long-term growth opportunities in a sustainable manner:

• Selective pre-committed and pre-sold approach to development activities, 78% of all developments pre-sold

• Successfully raised $449 million via an institutional placement and security purchase plan

• Debt markets open to prudent operators: procured debt facilities of $1.5 billion with average term of 4.3 years across Group and managed funds

• Gearing reduced to 21%[1 ] , $1.6 billion of liquidity fully covering debt maturities to FY16

+ Well positioned to deliver FY13 operating EPS of 32.3 cents (up 6% on FY12)

1. Calculated as total interest bearing liabilities over total assets, both net of cash and fair values of cross currency swaps used to hedge foreign liabilities denominated in currencies other than those to which the proceeds are applied equating to $101 million – refer to note 6 of the Financial Statements

6

==> picture [78 x 78] intentionally omitted <==

Highlights

	+	High occupancy maintained at 96%
Own	+	Retention rate of 78% and WALE of 4.7 years
	+	Like for like rental growth at 2.1%
	+	Leased 1.3 million sqm across the platform equating to $130 million of property income
	+	WIP at $2.0 billion across 63 projects in 10 countries with a forecast yield on cost of 8.6%
	+	Development commitments of $1.1 billion with 77% pre-committed and 70% pre-sold to funds or third parties
	+	Ability to finance and attract capital for development activities is a key point of difference when dealing with
Develop		customers
	+	Americas to contribute to development book in 2H FY13
	+	Increased development capital allocated to North America, Japan and China in line with growth in development
		book to $2.5 billion over the medium-term
	+	Total assets under management (AUM) of $21.0 billion, external AUM increased to $17.3 billion (up 13% on 1H
		FY12)
	+	Raised $1.8 billion of new third party equity, $1.5 billion net of investor liquidity
Manage	+	Continued focus on asset recycling: disposed $300 million of property assets across all regions
	+	$3.1 billion1in undrawn debt and equity providing opportunities for funds to participate in development
		opportunities from the Group and broader market
	+	Grew operating profit by 16% and reduced gearing to 21%2(33.9% look through)
Corporate	+ +	ICR 4.8x (2.8x look through) Successful implementation of the Hong Kong stapling restructure
	+	Successful restructure of the Goodman PLUS totalling $327 million

1. Fund investments are subject to Investment Committee approval

2. Calculated as total interest bearing liabilities over total assets, both net of cash and fair values of cross currency swaps used to hedge foreign liabilities denominated in currencies other than those to which the proceeds are applied equating to $101 million – refer to Note 6 of the Financial Statements

7

==> picture [78 x 78] intentionally omitted <==

==> picture [248 x 240] intentionally omitted <==

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

Section 2+
Section 2+
Results Results
overview Overview
----- End of picture text -----

==> picture [115 x 9] intentionally omitted <==

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

M7 Business Hub, Australia
----- End of picture text -----

8

Results overview

+ Operating results ahead of initial targets:

• Property fundamentals remain sound

• Result driven by growth in development and management activities

• Maintained liquidity and low gearing

==> picture [78 x 78] intentionally omitted <==

	1H FY13
Operating profit ($M)	265.7
Statutory accounting profit ($M)	154.6
Operating EPS (cents)1	16.2
Distribution per security (cents)	9.7

• Development commitments and enquiry levels a positive lead indicator into 2014 performance

• • Investment EBIT contributing 58% of earnings, 42% Development and Management:

• 65% Investment and 35% Development and Management on a look through basis

==> picture [190 x 146] intentionally omitted <==

==> picture [181 x 144] intentionally omitted <==

		As at
		31 Dec 2012
	NTA ($) Gearing (balance sheet)2(%)	2.64 21.1
	Available liquidity ($B)	1.6
	WACR (look through) (%)	7.9

1. Operating profit and operating EPS comprises profit attributable to security holders adjusted for property valuations, derivative and foreign currency mark to market and other non-cash or non-recurring items and calculated based on weighted average securities of 1,636.7 million which includes 5.8 million LTIP securities which have achieved the required performance hurdles and will vest equally in September 2013 and September 2014

2. Calculated as total interest bearing liabilities over total assets, both net of cash and fair values of cross currency swaps used to hedge foreign liabilities denominated in currencies other than those to which the proceeds are applied equating to $101 million – refer to Note 6 of the Financial Statements

9

Profit and loss

• • Half year operating profit of $265.7 million:

• Investments continue to trend up on increasing rents with ROA of >7%

• Increased scale improving management margins

• Transactional activity levels in the funds a key driver of management income for the half

• Development volumes continue to increase, driving increased EBIT and average ROA over 10%

• Statutory profit of $154.6 million includes property valuations, derivative mark-to-markets and other noncash or non-recurring items

• • Operating EPS of 16.2 cents per security, up 6% on 1H FY12
• • DPS of 9.7 cents per security, up 8% on 1H FY12

==> picture [78 x 78] intentionally omitted <==

Income statement

		1H FY12 $m	1H FY13 $m
	Investment (look through)	239.0	254.9
	Management	36.0	56.0
	Development Unallocated operating expenses Operating EBITDA (look through)	71.0 (17.2) 328.8	83.1 (19.9) 374.1
	Operating EBIT (look through)	325.7	371.9
	Look through interest and tax adjustment1	(67.9)	(64.5)
	Operating EBIT	257.8	307.4
	Net borrowing costs	0.9	(19.9)
	Tax expense	(4.6)	(10.7)
	Operating profit (pre minorities)	254.1	276.8
	Minorities2	(24.9)	(11.1)
	Operating profit (post minorities) Weighted average securities (million) 3	229.2 1,474.7	265.7 1,636.7
	Operating EPS (cps)	15.2	16.2
	**Non operating items4 **
	Property valuations	1.3	(39.4)
	Derivative and foreign currency mark to market	(1.6)	(52.3)
	Other non-cash or non-recurring items	(28.9)	(19.4)
	Statutory profit	200.0	154.6

1. Reflects adjustment to GMG proportionate share of managed funds’ interest and tax 2. Includes Goodman PLUS

2. Includes 5.8 million LTIP securities which have achieved the required performance hurdles and will vest equally in September 2013 and September 2014

3. Refer Appendix 1 slide 24

10

Balance sheet

+ Strong balance sheet maintained:

• $449 million equity raising provides funding for long-term growth opportunities

• Managed fund equity raisings and asset recycling

• • Fund cornerstones stable over the half but expected to grow with AUM
• • Development holdings increasing on the back of increased activity in Japan, China and North America
• • $1.6 billion of liquidity fully covering maturities to FY16

+ Resulting in the following key metrics:

• Gearing of 21.1%[3] (33.9% look through)

• NTA of $2.64 per security[2 ]

==> picture [78 x 78] intentionally omitted <==

Balance sheet

		30 June 2012	31 Dec 2012
		$m	$m
	Stabilised investment properties	2,259	2,137
	Fund cornerstones1	2,937	3,025
	Development holdings	1,529	1,582
	Intangibles	783	800
	Cash	311	378
	Other assets	401	491
	Total assets	8,220	8,413
	Interest bearing liabilities	(2,347)	(2,153)
	Other liabilities	(698)	(610)
	Total liabilities	(3,045)	(2,763)
	Minorities	(319)	(326)
	Net assets (post minorities)	4,856	5,324
	Net asset value ($)	3.03	3.11
	**Net tangible assets ($)2 **	2.54	2.64
	Balance sheet gearing3(%)	23.9	21.1

1. Includes Goodman’s investments in its managed funds and other investments 2. Based on 1,713.2 million securities on issue

2. Gearing calculated as total interest bearing liabilities over total assets, both net of cash and fair values of cross currency swaps used to hedge foreign liabilities denominated in currencies other than those to which the proceeds are applied equating to $101 million - refer to Note 6 of the Financial Statements

11

Group liquidity position

==> picture [78 x 78] intentionally omitted <==

• • Goodman Group has cash and available lines of credit of $1.6 billion at 31 December 2012:

• $378.1 million cash

• $1,189.7 million available lines

• • Significant covenant headroom maintained
• • Average debt maturity profile of 5.5 years
• • ICR at 4.8 times (2.8 times look through)
• • Debt markets remain open to the Group and managed funds:

• $0.2 billion through debt capital markets with an average expiry of 9.8 years

• $1.3 billion of bank facilities with an average expiry of 3.5 years

Goodman Group debt maturity profile

==> picture [343 x 250] intentionally omitted <==

12

==> picture [78 x 78] intentionally omitted <==

==> picture [196 x 207] intentionally omitted <==

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

Section 3+
Operational
Performance
----- End of picture text -----

==> picture [193 x 30] intentionally omitted <==

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

Interlink, Hong Kong
Goodman Fiege Brieseleang, Berlin
Osaka Nanko, Japan
----- End of picture text -----

Investment

• • Property fundamentals remain stable reflecting quality of the portfolio and customers:

• Maintained occupancy at 96%

• Retention remains high at 78%

• WALE of 4.7 years

• Like for like rental growth of 2.1%

• • Direct investments reducing in line with asset recycling initiatives
• • Cornerstone investments growing in line with growth in AUM

==> picture [78 x 78] intentionally omitted <==

Investment ($m)	1H FY12	1H FY13
Direct	84.1	81.1
Cornerstones	154.9	173.8
Look through EBITDA	239.0	254.9
**Key metrics1 **	1H FY12	1H FY13
WACR (%)	7.8	7.9
WALE (yrs)	5.2	4.7
Customer retention (%)	75	78
Occupancy (%)	96	96

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

2. • Property valuations stable with the exception of UK which declined

14

Development

• • Development demand continues to be driven by structural changes:

• E-commerce, supply chain efficiencies, building obsolescence, 3PL consolidation

+ Development WIP at $2.0 billion

• Americas to contribute to 2H FY13 WIP

• • Development book growing to $2.5 billion, driven by:

• Entry into the Americas

• Increased volume in China with development commitments expected to reach 800,000sqm in FY13

• Structural changes to customer needs either maintaining or increasing demand in other markets

• • Prudent low risk strategy focused on pre-sold and pre-committed developments

• 70% of new developments for third parties or funds

• 77% of new developments pre-committed

• China and Japan only markets with meaningful speculative led developments

==> picture [78 x 78] intentionally omitted <==

	Development ($m) Revenue EBITDA	1H FY12 86.0 71.0	1H FY13 102.1 83.1
	Key metrics	1H FY12	1H FY13
	Work in progress ($B)	2.1	2.0
	Work in progress (million sqm)	1.6	1.7
	Number of developments	58	63
	Development for third parties or funds (%)	85	78
	Pre-commitment (%)	87	73
	Yield (%)	8.9	8.6

	Work in progress (end value)	$B
	Opening (June 2012)	1.9
	Completions	(0.9)
	Commitments FX Closing (December 2012)	1.1 (0.1) 2.0

15

Management

• • External assets under management (AUM) of $17.3 billion increased 13% from 1H FY12
• • Development completions organically growing AUM
• • Fund initiatives and transactional activities key driver of revenue growth
• • Raised $1.8 billion in new third party equity, $1.5 billion net of investor liquidity

• Contemporary fund structure aligns investor interests

• • Global capital partners and customers attracted to sector specialist and development capabilities:

==> picture [78 x 78] intentionally omitted <==

Management ($m)	1H FY12	1H FY13
Fund management fees	36.3	51.1
Property service fees2	30.7	35.7
Revenue	67.0	86.8
EBITDA	36.0	56.0
Key metrics	1H FY12	1H FY13
Number of managed vehicles	13	14
External AUM (end of period) ($bn)	15.3	17.3

• Global capital available to partner in new markets

• • Continuing to pursue further long-term debt capital market alternatives in managed funds

• GAIF completed US$185 million unsecured note issue with 7 to 12 year maturities

+ Opportunities for funds to participate in growth opportunities

• $0.9 billion in undrawn debt facilities

• $2.2 billion[1] in undrawn equity

• Fund investments are subject to Investment Committee approval

• Includes gross up of property outgoings of $7.7 million (2012: $8.6 million)

16

Management – AUM

• • Major new initiatives completed during the half year include:

• Secured US$890 million for GNAP alongside CPPIB

• CPPIB doubled their equity commitment for GCLH to US$800 million

• Establishment of a US$1 billion development partnership in Japan with ADIC

• External equity commitments of US$100 million for GJCF

• $638 million equity raise for GAIF and fund extension to 2019

• GAIF acquired ten assets for $200 million with active asset management opportunities

• KGIT acquired second Australian logistics portfolio totalling $300 million

==> picture [78 x 78] intentionally omitted <==

==> picture [205 x 184] intentionally omitted <==

• GHKLF extended for a further 7 years to 2020

==> picture [434 x 225] intentionally omitted <==

==> picture [206 x 186] intentionally omitted <==

17

Management platform

==> picture [78 x 78] intentionally omitted <==

	Goodman’s six largest managed vehicles	Goodman’s six largest managed vehicles	Goodman’s six largest managed vehicles	Goodman’s six largest managed vehicles	Goodman’s six largest managed vehicles	Goodman’s six largest managed vehicles
	GAIF	GTA	GELF	GHKLF	ABPP	**GMT1 **
Total assets	$5.1bn	$2.9bn	$2.4bn	$1.8bn	$1.6bn	$1.3bn
GMG co-investment	38.4%	19.9%	28.4%	20.0%	43.1%	18.1%2
GMG co-investment	$1.1bn	$0.3bn	$0.4bn	$0.2bn	$0.3bn	$0.2bn2
Number of properties	114	57	91	14	25	20
Occupancy	97%	97%	98%	99%	91%	96%
Weighted average lease expiry	6.0 yrs	3.5 yrs	5.0 yrs3	2.9 yrs	5.9 yrs3	5.4 yrs
WACR	8.2%	8.1%	7.6%	6.1%	8.5%	8.3%4
Gearing	34.8%	38.6%	37.8%	26.5%	50.6%	35.4%
Weighted average debt expiry	4.5 yrs	2.6 yrs	2.6 yrs	2.4 yrs	3.2 yrs	3.2 yrs

1. As at 30 September 2012 (as disclosed to the New Zealand stock exchange on 13 November 2012) 2. As at 31 December 2012

2. WALE of leased portfolio to next break at 31 December 2012

3. GMT’s WACR of 8.3% is post acquisition of the remaining interests in Highbrook Business Park

18

==> picture [78 x 78] intentionally omitted <==

Section 3+ ~~Section 4+~~ Capital Management Outlook and Initiatives Summary

Pudong International Airport Logistics Park, China China

==> picture [78 x 78] intentionally omitted <==

Outlook and summary

	+	Maintain position as a leading global industrial property operator and fund manager
Strategy	+ +	Fully operational in the largest and / or growing consumer economies Customer service model and asset management capabilities key to business model
	+	Focus is on execution of day to day operating activities
	+	Goodman well positioned to benefit from improving macro sentiment
	+	Logistics markets remain stable driving rental returns
	+	Active asset management driving incremental growth through higher and better use strategies
	+	Demand for core, high quality, stable yielding industrial real estate remains strong from global pension and sovereign funds.
		Natural owner of Goodman development book
Outlook
	+	Structural rather than cyclical change driving development demand: E-commerce, supply chain efficiencies, 3PL
		consolidation, building obsolescence
	+	Global capital partners attracted to sector specialist and development capabilities
	+	Continued capital flows expected into China, Australia, Japan and Europe
	+	North America and Brazil to commence developments in 2H FY13
	+	Low gearing enables the Group to pursue growth opportunities and absorb market shocks
Capital management	+	Focus remains on a low risk approach of pre-committed development matched to third party capital
	+	Maintain gearing around 25% and pursue further diversification of long-term funding sources within managed funds
	+	Proven track record, global operating platform, extensive relationships with global investment partners and customers
Summary	+	Benefiting from global capital partners and customers driving ‘active’ earnings growth
	+	FY13 earnings guidance of 32.3 cents per security up 6% on FY12 driven by growth in the development and
		management business

20

==> picture [78 x 78] intentionally omitted <==

Appendix 1+ Results analysis

Profit and loss

Total income by business segment for the year ended 31 December 2012

==> picture [78 x 78] intentionally omitted <==

Category Total Investment Management Development Unallocated Non- operating items	Category Total Investment Management Development Unallocated Non- operating items	Category Total Investment Management Development Unallocated Non- operating items	Category Total Investment Management Development Unallocated Non- operating items	Category Total Investment Management Development Unallocated Non- operating items	Category Total Investment Management Development Unallocated Non- operating items	Category Total Investment Management Development Unallocated Non- operating items
$M $M $M $M $M $M
Gross property income Fund management income Property services income Development income Income from disposal of inventories Distributions from investments Net gain 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 investments1 Net loss on disposal of equity investments	112.4 51.0 35.7 80.5 103.4 1.8 20.8 8.3 24.2 72.9 (3.1)	111.6 - - - - 1.8 - - - 107.5 -	- 51.0 35.7 - - - - - - 0.1 -	- - - 80.5 103.4 - - 7.9 24.2 0.9 -	- - - - - - - - - - -	0.8 - - - - - 20.8 0.4 - (35.6) (3.1)
Total income	507.9	220.9	86.8	216.9	-	(16.7)
Development and property expenses and inventory cost of sales Operating expenses Impairment losses	(145.3) (88.3) (31.3)	(30.5) - -	- (30.8) -	(114.8) (19.0) -	- (22.1) -	- (16.4) (31.3)
EBIT	243.0	190.4	56.0	83.1	(22.1)	(64.4)
Look through NPI adjustment (Goodman share of interest and tax within its fund investments)	64.5	64.5
Look through operating EBIT	307.5	254.9	56.0	83.1	(22.1)	(64.4)

1. Includes share of associate and JVE property valuation losses of $(29.5) million, share of associate and JVE unrealised derivative losses of $(5.8) million and other non-cash, non-operating items within associates of $(0.3) million

22

==> picture [78 x 78] intentionally omitted <==

Profit and loss (cont)

Category	Category	Total Investment Management Development Unallocated Non-operating items	Total Investment Management Development Unallocated Non-operating items	Total Investment Management Development Unallocated Non-operating items	Total Investment Management Development Unallocated Non-operating items	Total Investment Management Development Unallocated Non-operating items	Total Investment Management Development Unallocated Non-operating items
		$M $M $M $M $M $M
EBIT – per statutory accounts		243.0	190.4	56.0	83.1	(22.1)	(64.4)
Net gain from fair value adjustments on investment properties Net gain on disposal of investment properties Share of net loss from fair value adjustments on investment properties and interest rate swaps in associates and JVEs Impairment losses Straight-lining of rent and amortisation of lease incentives Share based payment expense Other non-cash, non-operating items		(20.8) (0.4) 35.6 31.3 (0.8) 13.9 5.6	- - - - - - -	- - - - - - -	- - - - - - -	- - - - - - -	(20.8) (0.4) 35.6 31.3 (0.8) 13.9 5.6
Operating EBIT		307.4	190.4	56.0	83.1	(22.1)	-
Net finance expense (statutory) Add: fair value adjustments on derivative financial instruments Add: foreign exchange loss Net finance expense (operating) Income tax expense Deferred tax expense Minorities		(66.4) 80.7 (34.2)
		(19.9) (10.9) 0.2 (11.1)
Operating profit available for distribution		265.7
Net cash provided by operating activities1		226.3

1. Difference between operating profit pre-minorities and cash provided by operating activities of $(50.5) million relates to: - $(53.6) million of prepaid interest and capitalised interest

2. $3.1 million of working capital movements

23

Reconciliation non-operating items

==> picture [78 x 78] intentionally omitted <==

Non-operating Items in statutory profit & loss	Notes		Half Year ended
			31 Dec 2012
		$M	$M
Property valuations
Net gain from fair value adjustments on investment properties	1	20.8
Share of net gain from fair value adjustments on investment properties in associates and joint ventures	1	(29.5)
Deferred tax on fair value adjustment on investment properties	1	(0.2)
Subtotal			(8.9)
Impairment losses
Impairment – inventories	1	(14.7)
Impairment – receivables	1	(11.9)
Impairment – equity accounted investments	1	(2.8)
Impairment – other financial assets	1,2	(1.9)
Subtotal			(31.3)
Derivative and foreign currency mark to market
Fair value adjustments on derivative instruments – GMG		(80.7)
Unrealised foreign exchange gain		34.2
Fair value adjustments on derivative instruments – associates and joint ventures		(5.8)
Subtotal			(52.3)
Other non-cash or non-recurring items
Share based payment expense		(13.9)
Capital profits not distributed		0.4
Transaction related costs for strategic initiatives		(5.9)
Straight-lining of rent and amortisation of lease incentives		0.8
Subtotal			(18.6)
TOTAL			(111.1)

1. Property valuation losses totalling ($39.4) million (refer to slide 10). Of the ($1.9) million of Impairments of other financial assets, ($1.1) million relates to GEBPF property valuations, the remaining ($0.8) million relates to non-property related impairments (see note 2 below) and included in other non cash items

2. Non-property related impairments totalling ($0.8) million (refer to slide 10). Of the ($1.9) million of Impairments of other financial assets, ($0.8) million relates to non property related impairments (see note 1 above) and included in other non cash items

24

Financial position

As at 31 December 2012 Direct Assets $M Investments $M Developments $M Other $M Total $M	As at 31 December 2012 Direct Assets $M Investments $M Developments $M Other $M Total $M
Cash - - - 378.1	378.1
Receivables - 94.7 163.6 453.2	711.5
Inventories - - 837.7 -	837.7
Investment properties 2,136.9 - 368.0 -	2,504.9
Investments accounted for using equity method - 2,917.3 168.7 -	3,086.0
Other financial assets - 13.1 - -	13.1
Intangibles - - - 800.1	800.1
Other assets - - 43.7 37.6	81.3
Total assets 2,136.9 3,025.1 1,581.7 1,669.0	8,412.7
Interest bearing liabilities 2,153.1	2,153.1
Other liabilities 610.1	610.1
Total liabilities 2,763.2	2,763.2
Net assets/(liabilities)	5,649.5
**Gearing1 **	21.1%
**NTA (per security)2 **	$2.64
Asia Pacific 1,839.5 2,285.5 704.0 810.8	5,639.8
North America - - 82.8 3.9	86.7
Europe 297.4 739.6 794.9 854.3	2,686.2

==> picture [78 x 78] intentionally omitted <==

==> picture [158 x 239] intentionally omitted <==

1. Calculated as total interest bearing liabilities over total assets, both net of cash and fair values of cross currency swaps used to hedge foreign liabilities denominated in currencies other than those to which the proceeds are applied equating to $101 million – refer to Note 6 of the Financial Statements

2. Calculated based on 1,713.2 million number securities on issue

25

Property valuations

==> picture [78 x 78] intentionally omitted <==

+ Overall property valuations relatively stable with the exception of UK

• • WACR at 7.9%
• • Strong investor demand continues for prime investment assets
• • Negative sentiment from valuers on assets with shorter lease terms

31 December 2012 property valuations (look through)

	Book value	Book value	Movement since	WACR	WACR movement
	(GMG exposure) $M		June 2012 $M	%	since June 2012 %
Australia		4,885	21.3	8.1	-
New Zealand		301	-	8.3¹	(0.2)
Hong Kong		318	4.1	6.1	(0.1)
China		266	3.1	9.2	0.2
Japan		254	1.5	5.5	-
UK		1,838	(55.4)	8.4	0.3
Continental Europe		1,207	(14.0)	7.7	-
North America		77	-	n.a	-
Total / Average		9,146	(39.4)	7.9	(0.1)

1. New Zealand WACR of 8.3% is post acquisition of the remaining interests in Highbrook Business Park

26

==> picture [78 x 78] intentionally omitted <==

Appendix 2+ Investment

Leasing

==> picture [78 x 78] intentionally omitted <==

Across the Group and Funds platform:

• • ~1.3 million sqm leased during the half year

• Positive lease reversions of 2.7% on new leasing deals, with like for like NPI growing at 2.1%

+ Occupancy maintained at 96%

Division	Leasing area (sqm)	Net annual rent (A$M)	Average lease term	Occupancy at 31 December
			(years)	2012 (%)
Australia – Direct	145,698	18.3	3.7	96
Australia – GAIF	266,370	35.2	4.4	97
Australia – GTA	73,212	9.7	4.5	97
New Zealand – GMT1	88,000	8.4	4.0	96
Hong Kong – GHKLF	153,688	21.8	5.4	99
UK – ABPP	2,397	0.7	7.1	91
Europe – GELF	486,778	28.5	3.0	98
Other	92,887	7.5	3.5	94
Total	1,309,030	130.1	4.1	96

1. As at 30 September 2012 (as disclosed to the New Zealand stock exchange on 13 November 2012)

28

Customers

==> picture [78 x 78] intentionally omitted <==

==> picture [473 x 433] intentionally omitted <==

29

Geographic exposure

==> picture [78 x 78] intentionally omitted <==

Top 20 sub regions (by AUM)

==> picture [477 x 421] intentionally omitted <==

30

==> picture [78 x 78] intentionally omitted <==

Direct portfolio detail – Australia

Key metrics

Portfolio snapshot

Total assets	A$1.8 billion
Customers	235
Number of properties	28
Occupancy	96%
Weighted average cap rate	7.9%

• • 28 properties with a total value of $1.8 billion located across key Australian markets
• • Leasing deals remain strong across the portfolio:

• 145,698 sqm ($18.3 million net annual rental) of existing space leased

• customer retention 85% (rolling 12 months)

• average portfolio valuation cap rate of 7.9%

• • 96% occupancy and a weighted average lease expiry of 3.5 years

WALE of 3.5 years (by net income)

==> picture [216 x 213] intentionally omitted <==

Top 10 customers make up 28% of portfolio income

==> picture [370 x 211] intentionally omitted <==

31

==> picture [78 x 78] intentionally omitted <==

Direct portfolio detail – UK and CE

Key metrics

Portfolio snapshot

Total assets	A$0.3 billion
Customers	27
Number of properties	12
Occupancy	92%
Weighted average cap rate	8.0%

• • Occupancy at 92%
• • Strong WALE of 5.3 years
• • Active enquiry on remaining vacancy
• • Cap rates stable with current WACR of 8.0%

WALE of 5.3 years (by net income)

==> picture [247 x 227] intentionally omitted <==

Top 10 customers make up 80% of portfolio income

==> picture [408 x 207] intentionally omitted <==

32

==> picture [78 x 78] intentionally omitted <==

A endix 3+ pp Development

Developments

==> picture [78 x 78] intentionally omitted <==

1HFY13 Developments	Completions	Commitments	Work in progress
Value ($M)	920	1,147	2,005
Area (m sqm)	0.9	1.0	1.7
Yield (%)	8.6	8.6	8.6
Pre-committed (%)	92	77	73
Weighted Average Lease Term (years)	5.4	7.9	10.3
Development for Third Parties or Funds (%)	90	70	78
Australia / New Zealand (%)	35	55	48
Asia (%)	14	15	24
Europe (%)	51	30	28

Work in progress	On balance sheet	Third party funds	Total end value	Third party funds	Pre committed
by region	end value	end value		% of total	% of total
	$M	$M	$M
Australia / New Zealand	56	897	953	94	85
Asia	93	397	490	81	20
Europe	285	277	562	49	99
Total	434	1,571	2,005	78	73

34

Developments (cont)

+ Increased development pipeline in excess of $11 billion with entry into new markets

• Development pipeline restocked (Americas, China, Japan)

• Forecast GLA over 7 million sqm

• Development pipeline allocated as Asia Pacific 43%, Europe 45% and Americas 12%

+ The Group’s development future cash commitments

Commitments as at 31 December 2012	$M
Gross GMG cost to complete	344
Less pre-sold1cost to complete	(53)
Net GMG cost to complete	291
Net GMG managed funds cost to complete	926

1. Pre-sold projects are reimbursed by instalments throughout the project or at practical completion of the project

==> picture [78 x 78] intentionally omitted <==

==> picture [205 x 238] intentionally omitted <==

==> picture [221 x 169] intentionally omitted <==

35

==> picture [78 x 78] intentionally omitted <==

Appendix 4+ Management

==> picture [78 x 78] intentionally omitted <==

Global platform

==> picture [661 x 421] intentionally omitted <==

37

Goodman Australia Industrial Fund

==> picture [78 x 78] intentionally omitted <==

Key events

• • Successfully completed $638 million equity raising in December and fund extension to 2019
• • Completed US$185 million unsecured note issue with 7-12 year maturities
• • Acquired ten assets for $200 million with active asset management opportunities
• • Sold $111 million portfolio to KGIT
• • Committed to 123,955 million sqm of developments with an end value of $236 million
• • Leased 266,000 sqm in the half, representing $35.2 million of net property income

Key metrics[1 ]

Total assets	A$5.1 billion
Interest bearing liabilities	A$1.8 billion
Gearing2	34.8%
Customers	418
Number of properties	114
Occupancy	97%
Weighted average lease expiry³	6.0 years
Weighted average cap rate	8.2%
GMG co-investment (%)	38.4%
GMG co-investment ($b)	A$1.1 billion

• • Amended governance structure to bring into line with other Goodman funds

Debt maturity profile[4 ]

• Independent Board comprising three independent directors and two executive directors

• Securityholder Committee comprising five of the largest investors by investment size, one minority investor representative and the three independent directors

• • Continued interest from investors in various stages of due diligence

• As at 31 December 2012

• Calculated as IBL/total assets

• Including developments 4. Includes post December 2012 renegotiation of $225 million of bank debt facilities

38

Goodman Trust Australia

==> picture [78 x 78] intentionally omitted <==

Key events

• • Acquired 112 Talavera Road, North Ryde with subsequent development pre-commitment to Fujitsu for 11,600sqm office building
• • Work in progress of 202,638 sqm with end value of $403 million
• • Committed to 174,049 sqm of developments with an end value of $336 million
• • Leased 81,000 sqm in the half, representing $10.0 million of net property income

Key metrics[1 ]

Total assets	A$2.9 billion
Interest bearing liabilities	A$1.1 billion
Gearing2	38.6%
Customers	243
Number of properties	57
Occupancy	97%
Weighted average lease expiry	3.5 years
Weighted average cap rate	8.1%
GMG co-investment (%)	19.9%
GMG co-investment ($b)	A$0.3 billion

• • Pursuing a number of higher and better use alternatives in Sydney and Melbourne

Debt maturity profile[1 ]

1. As at 31 December 2012 2. Calculated as net debt/total assets

39

Goodman European Logistics Fund

==> picture [78 x 78] intentionally omitted <==

Key events

• • Significant weighting to core Western European countries >80%[4]
• • Acquisitions totalling $106 million completed from the Group in the half year
• • Leased 487,000 sqm in the half representing $28.5 million of net property income
• • Focus on diversify debt funding on the back of S&P and Moody’s ratings
• • Continued investor demand for investment in European logistics indicating support for future capital raisings

Key metrics[1 ]

Total assets	A$2.4 billion
Interest bearing liabilities	A$0.9 billion
Gearing2	37.8%
Customers	92
Number of properties	91
Occupancy	98%
Weighted average lease expiry3	5.0 years
Weighted average cap rate	7.6%
GMG co-investment (%)	28.4%
GMG co-investment ($b)	A$0.4 billion

Debt maturity profile[1 ]

1. As at 31 December 2012

2. Calculated as net debt/total assets less cash

3. WALE of leased portfolio to next break

4. Core Western European countries comprise Belgium, France, Germany and The Netherlands

40

Goodman Hong Kong Logistics Fund

==> picture [78 x 78] intentionally omitted <==

Key events

• • Seven year fund extension approved unanimously in December. Next liquidity review in 2020
• • Sold two assets for $51 million on a higher and better use alternative
• • Unanimous support form investors to increase weighting to Hong Kong Logistics

• Exclusive due diligence being undertaken on one asset

• Continue to evaluate land opportunities

Key metrics[1 ]

Total assets	A$1.8 billion
Interest bearing liabilities	A$0.5 billion
Gearing2	26.5%
Customers	194
Number of properties	14
Occupancy	99.4%
Weighted average lease expiry	2.9 years
Weighted average cap rate	6.1%
GMG co-investment (%)	20%
GMG co-investment ($b)	A$0.2 billion

• • Leased 153,000sqm in the half representing $21.8 million of net property income

Debt maturity profile[1 ]

• • Portfolio occupancy at 99% highlighting demand for logistics space
• • Governance structure unchanged and represents best practice

• Calculated as (total external debt less cash excluding rental deposits) / (total assets less cash excluding rental deposits less JV loan receivable)

• As at 31 December 2012

41

Arlington Business Parks Partnership

==> picture [78 x 78] intentionally omitted <==

Key events

• • Arlington Business Parks Partnership (ABPP) is a core plus unlisted fund which invests, develops and manages business parks located in key UK regional and urban fringe office markets
• • Portfolio comprising 22 business parks and 3 stand alone assets valued at $1.6 billion
• • Substantial development pipeline – 299 acres of consented land providing over 6.2 million sq ft of future development
• • Key focus on asset rotation and re-investment into pre-let and turnkey developments on existing land bank

Key metrics[1 ]

Total assets	A$1.6 billion
Interest bearing liabilities	A$0.8 billion
Gearing2	50.6%
Customers	155
Number of active business parks	25
Occupancy	91%
Weighted average lease expiry3	5.9 years
Weighted average cap rate	8.5%
GMG co-investment (%)	43.1%
GMG co-investment ($b)	A$0.3 billion

Debt maturity profile[1 ]

1. As at 31 December 2012

2. Calculated as net debt/total assets less cash 3. WALE of leased portfolio to next break at 31 December 2012

42

Goodman Property Trust

==> picture [78 x 78] intentionally omitted <==

Key events

• • A constituent in the leading NZX15 Index
• • Completed unit purchase plan and private placement equity raisings for NZ$90 million
• • Completed the acquisition for the remaining interests in Highbrook Business Park
• • Work in progress of 60,144sqm with end value of $103 million
• • Leased 88,000sqm in the half representing $8.4 million of net property income

Key metrics[1 ]

Total assets	A$1.3 billion
Interest bearing liabilities	A$0.5 billion
Gearing2	35.4%
Customers	243
Number of properties	20
Occupancy	96%
Weighted average lease expiry	5.4 years
Weighted average cap rate	8.3%³
GMG co-investment (%)4	18.1%
GMG co-investment ($b)4	A$0.2 billion

Debt maturity profile[1 ]

1. As at 30 September 2012 (as disclosed to the New Zealand Stock Exchange on 13 November 2012)

2. Calculated as net debt/property assets (includes GMT’s proportionate share of jointly controlled entities and total borrowings is net of cash) 3. Weighted average cap rate of 8.3% is post the acquisition of the remaining interests in Highbrook Business Park 4. As at 31 December 2012

43

==> picture [78 x 78] intentionally omitted <==

Appendix 5+ Capital management

Torun Logistics Centre, Poland

Group financial covenants

==> picture [78 x 78] intentionally omitted <==

Covenants	Test	Covenant	Result	Headroom
Gearing ratio	Net liabilities1as a percentage of net tangible assets is not more than 55.0%	55.0%	27.9%	27.1%
Interest cover ratio	EBITDA to interest expense at least 2.0x	2.0x	4.8x	2.8x
Priority debt	Secured debt as a percentage of total tangible assets is not more than 12.5%	12.5%	0%	12.5%
	Net unsecured debt (total unsecured debt less
Unencumbered real property assets	unrestricted cash) to be not more than 100% of the amount of unencumbered real property assets (all unencumbered direct assets including stabilised assets,	100%	57.3%	42.7%
	development WIP and land bank)
Unencumbered assets	Unsecured debt as a percentage of unencumbered assets is not more than 66.6%	66.6%	28.5%	38.1%

1. Net liabilities = total liabilities less cash and excludes trade payables, mark to market derivatives, deferred tax liabilities and provisions for Securityholder distributions

45

Currency mix

==> picture [269 x 234] intentionally omitted <==

==> picture [78 x 78] intentionally omitted <==

==> picture [270 x 248] intentionally omitted <==

46

Financial risk management

==> picture [78 x 78] intentionally omitted <==

Financial risk management in line with Group Board policy

+ Interest risk management:

• 92% hedged over next 12 months

• Weighted average hedge maturity of 6.0 years

• Weighted average hedge rate of 4.84%[1] vs spot 1.23%[2]

• Current “all in” net WACD 3.28%[3 ]

+ Foreign currency risk management:

• 86% hedged as at 31 December 2012, of which 68% is debt and liabilities and 32% is derivatives

• Weighted average maturity of derivatives is 4.4 years

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

• Spot refers to 5 year swap market rate as at 15 February 2013 3. Includes the AUD receiver leg from the cross currency swaps

47

Financial risk management (cont)

==> picture [78 x 78] intentionally omitted <==

Interest rate

• • Interest rates are hedged to 92% over next 12 months
• • Weighted average hedge rate of 4.84%[1] vs spot 1.23%[2]

• NZD – (hedge 4.39%, spot 3.57%)

• JPY – (hedge 1.19%, spot 0.29%)

• HKD – (hedge 1.37%, spot 0.89%)

• GBP – (hedge 8.04%[3] , spot 1.20%)

• Euro – (hedge 3.05%, spot 1.08%)

==> picture [337 x 223] intentionally omitted <==

• USD – (hedge 6.05%, spot 1.02%)

• • Weighted average maturity of 6.0 years
• • “All in” net WACD of 3.28%[4 ]

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

• Spot refers 5 year swap market rate as at 15 February 2013 3. Includes the 10 year EMTN £250 million at 9.75% fixed rate

• Includes the AUD receiver leg from the cross currency swaps

48

Financial risk management (cont)

==> picture [78 x 78] intentionally omitted <==

Interest rate hedging profile

	Euro payable GBP payable HKD payable NZD payable JPY payable USD payable AUD receivable
As at Dec	€M Fixed rate % £M Fixed1 rate % HK$M Fixed rate % NZ$M Fixed rate % ¥M Fixed rate % US$M Fixed rate % A$M Fixed rate %
2013	(610.1) 2.99 (311.7) 9.35 (1,250.0) 1.18 (200.0) 4.59 (15,200.0) 0.65 (395.0) 6.44 380.0 3.29
2014	(697.1) 2.56 (380.9) 8.52 (1,111.2) 1.68 (186.0) 4.50 (13,615.1) 0.70 (395.0) 6.44 380.0 3.29
2015	(451.0) 2.35 (502.5) 7.26 (1,093.2) 1.28 (120.0) 3.99 (7,757.5) 0.98 (395.0) 6.44 380.0 3.29
2016	(200.0) 4.50 (438.4) 7.53 (967.2) 1.34 (80.6) 4.26 (3,848.9) 1.50 (395.0) 6.44 380.0 3.29
2017	(158.1) 4.50 (382.0) 7.77 - - - - (1,200.0) 3.32 (395.0) 6.44 380.0 3.29
2018	(118.4) 4.50 (160.5) 8.81 - - - - (1,200.0) 3.32 (395.0) 6.44 196.8 3.30
2019	- - - - - - - - (1,200.0) 3.32 (395.0) 6.44 - -
2020	- - - - - - - - (1,200.0) 3.32 (395.0) 6.33 - -
2021	- - - - - - - - (1,200.0) 3.32 (395.0) 5.20 - -
2022	- - - - - - - - (1,200.0) 3.32 (395.0) 3.83 - -

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

49

Financial risk management (cont)

==> picture [78 x 78] intentionally omitted <==

Currency hedging profile

		Amount		Amount
Maturing in	Hedge rate	payable	Hedge rate	payable
year ending June
		HK$M		NZ$M
2013	4.9031	(50.0)	1.1932	(5.0)

Foreign currency denominated balance sheet hedging maturity profile

Currency	Maturity	Weighted average	**Amount receivable1 **	**Amount payable1 **
		exchange rate
NZ$M	2017 / 2018	1.2795	A$172.0M	NZ$220.0M
HK$M	2015 / 2016 / 2018	7.9202	A$209.2M	HK$1,650.0M
¥M	2016 / 2017	85.9348	A$180.4M	¥15,500.0M
£	2023	131.5400	¥11,300.0M	£85.9M
£	2017	0.6427	A$77.8M	£50.0M
€M	2016 / 2017 / 2018	0.7700	A$520.6M	€400.0M
US$M	2020/2021/2022	0.6247	US$355.0M	£221.8M
US$M	2020/2021/2022	0.7217	US$575.0M	€415.0M

1. Floating rates apply for the payable and receivable legs for the cross currency swaps except for the USDGBP, USDEUR and GBPJPY cross currency where the receivable for US$660 million is fixed at 6.375%, ¥11,300 million fixed at 3.32% and US$270M fixed at 6.0%.

50

Exchange rates

==> picture [78 x 78] intentionally omitted <==

• Statement of Financial Position – exchange rates as at 31 December 2012

• AUDGBP – 0.6428 (31 December 2011 : 0.6537) – AUDEUR – 0.7868 (31 December 2011 : 0.7813)

• AUDHKD – 8.0474 (31 December 2011 : 7.9675)

• AUDSGD – 1.2684 (31 December 2011 : 1.3297) – AUDNZD – 1.2608 (31 December 2011 : 1.3132) – AUDUSD – 1.0384 (31 December 2011 : 1.0101) – AUDJPY – 89.4600 (31 December 2011 : 78.5500) – AUDCNY – 6.4740 (31 December 2011 : 6.4617)

• Statement of Financial Performance – average exchange rates for the 6 months to 31 December 2012

– AUDGBP – 0.6523 (31 December 2011 : 0.6478) – AUDEUR – 0.8159 (31 December 2011 : 0.7466) – AUDHKD – 8.0543 (31 December 2011 : 8.0320) – AUDSGD – 1.2827 (31 December 2011 : 1.2947) – AUDNZD – 1.2731 (31 December 2011 : 1.2822) – AUDUSD – 1.0388 (31 December 2011 : 1.0307) – AUDJPY – 82.9750 (31 December 2011 : 79.9609) – AUDCNY – 6.5459 (31 December 2011 : 6.5904)

51

==> picture [78 x 78] intentionally omitted <==

Q & A

thank+ you

==> picture [78 x 78] intentionally omitted <==

53