GPT GROUP — Annual Report 2006

Feb 23, 2006

2005 Annual Results

The GPT Group

Overview

• Internalisation update
• Core portfolio performance
• Joint Venture update
• Capital Management overview
• Group outlook

Reconciliation of Distributable Amount

	Actuals \$m\$
Profit after tax (A-IFRS)	566.8
Plus
Finance Costs	205.5
Internalisation costs	62.3
Other (Net)	9.4
Less
Fair Value and Revenue Adjustments	341.7
Net gain on disposal of properties	10.0
Equals
Realised Operating Income	492.3

Results in line with EM

	EM	Actuals (\$m)
	Forecast (\$m)*
Property Income	643.3	641.3
JV Income	20.2	20.2
Trust Expenses	(6.0)	(7.2)
Management & Admin	(28.0)	(27.6)
Net Interest – domestic	(137.5)	(134.4)
Total distribution	492.0	492.3

*Adjusted to remove the impact of the sale of an interest in Sunshine Plaza

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Strong Operating Performance

$\overline{a}$

	2002	2003	2004	2005**
Distribution (cps)	20.4	21.2	22.0	24.4
Growth	3.5%	3.9%	3.8%	10.9%
Earnings (cps)	20.4	21.6	21.3	24.4
Underlying growth*	3.6%	3.1%	3.1%	14.5%
NTA per security	\$2.60	\$2.73	\$3.02	\$3.16
1 Yr Return	12.8%	8.2%	33.6%	16.7%

-Excludes the impact of the change in fee, performance fees paid and costs associated with the Lend Lease merger proposal, the Stockland takeover offer and internalisation proposal.

** Growth based on previous corresponding period. Excludes the impact of the adoption of A-IFRS on the financial statements. Earnings per security is before fair value adjustments, recognition of rent frees, amortisation of lease incentives, profit on disposal of properties, costs associated with internalisation and finance costs to securityholders.

GPT: Asset Breakdown

• JV investment represents 8% total investment assets

Retail

Penrith development: complete November 2005

$\overline{7}$ Annual Results 2005

Key Results: Retail

• Comparable income up 4.3% (5.9% overall) $\bullet$
• Strong sales and operating results*
• Total centre comparable MAT growth up 3.6%
• Specialty comparable MAT growth up 3.3%
• Regional specialty sales/sqm at \$9,083
• Regional specialty occupancy costs at 14.7%
• Occupancy high and arrears low**
• $-$ Vacancy less than 0.5% GLA
• Arrears less than 0.1% of annual billings

*Excluding centres impacted by development ** GPT managed assets

Retail Developments: Existing Projects

• Melbourne Central (\$260m: 100%) $\bullet$
• Complete Sept 2005
• Trading well
• $-8%$ yield on cost
• Penrith (\$70m: 50%)
• Complete Nov 2005
• Fully leased
• $-9%$ yield on cost
• Macarthur Square (\$109m: 50%) $\bullet$
• Stage 1 complete Nov 2005
• Stage 2 due March 2006
• $-8%$ yield on cost

Melbourne Central

Penrith

Retail Developments: Future Projects

Rouse Hill Town Centre, NSW

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Rouse Hill Town Centre

• Strong growth potential
• Trade area larger than regional average
• Strong population growth
• Household income significantly above average
• Major retail, leisure and community destination
• $-70,000$ sqm
• Majors secured
• \$470 million development $\bullet$
• Future expansion potential

National @Docklands, VIC

Citigroup, 2 Park Street, Sydney

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Key Results: Office

• Comparable income flat (up 1.7% overall)
• Occupancy increased to 94.9%* $\bullet$
• 108,000 sqm leased to December 05 $\bullet$
• Terms agreed over an additional 36,400 sqm
• Manageable lease expiry profile
• Average lease term $6.2$ years*
• Darling Park Stage 3 $\bullet$
• Completed ahead of schedule (end 2005)
• Leasing underway (three floors remaining)

Excluding Darling Park 3

Hotel/Tourism

Ayers Rock Resort, NT

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Key Results: Hotel/Tourism

• Comparable income up 8.9% (24.5% overall)
• Ayers Rock Resort

— Revenue	$+8.4%$
— Room Nights Sold	$+3.0\%$
— Room Rate	$+4.2%$
— GPT Income	$+8.2%$

• Four Points by Sheraton Sydney
• $+4.3%$ - Revenue
• Room Nights Sold $(5.5\%)$
• $+12.2\%$ - Room Rate
• GPT Income $+8.1%$

Key Results: Hotel/Tourism

• Lodges Portfolio

	Revenue	$(4.9\%)$
--	---------	-----------

• Room Nights Sold $(5.8\%)$
• Room Rate $(0.4\%)$
• Income $+ 118\%$ *

Brisbane Holiday Inn $\bullet$

— Revenue	$+9.5%$
- Room Nights Sold	$+3.0\%$
— Room Rate	$+11.9%$

• Income $+69.5%$

*Includes impact of acquisitions during 2004 and 2005

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Industrial/Business Park

Quad 3: Olympic Park, NSW

Effem Facility: Somerton, VIC

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Key Results: Industrial/Business Park

• Comparable income up 7.5% (15.2% overall)
• High occupancy 98.4% (incl. land leases)
• Long average lease term $-6.1$ years
• Austrak, Somerton
• Coles Myer National Distribution Centre (74,700 sqm)
• $-$ Labelmakers (22,200 sqm)
• P&O Terminal lease
• Further acquisitions
• 5 Figtree Drive, Homebush Bay
• 973 Fairfield Rd, Yeerongpilly
• Six assets acquired February 2005
• Quad 4 underway

Urban Communities

Twin Waters, QLD

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Joint Venture: Update

• GPT income from JV \$28.2 million
• 1.0 cps distribution, net of funding costs
• Includes Babcock & Brown contribution of \$5.8m
• Acquisition program well advanced
• $-$ \$3.5 billion acquired (at mid Feb 2006)*
• Pipeline remains strong
• Spreads at or near target
• Well placed to achieve original forecasts
• On track to be fully invested end 2006

* Includes completed and under contract

Joint Venture: Portfolio Diversity

JV FUND PORTFOLIO:* JV FUND PORTFOLIO:* Asset Sector by Value (AUD) Geographic Distribution by Value (AUD) Poland W Light Industrial ■ Czech Republic $2%$ 15% 5% ® United States 16% Office Residential $8%$ 39% France $1%$ $\blacksquare$ Netherlands .
⊪Germany $6%$ B Retail 38%

*At mid Feb 2006

Annual Results 2005

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Portfolio Update: German Residential

• Portfolio value \$1.36 billion
• Completed Dec 2005 \$884m
• Since completed or under contract Feb 2006 $$474m$
• Performance on track*
• $-88%$ occupancy
• $−$ €4.92 rent p/sqm
• Average 2006 forecast yield 6.3% (net of all costs)
• Outlook $\bullet$
• Strong capital inflows, capitalisation rates compressing
• Focus on portfolio optimisation
• Potential to realise trading profits in 2007

* Portfolio at 31 December 2005

Portfolio Update: German Residential

LOCATION	GLA	APTS*	VALUE
North & West Germany (AMB)	113,232	1,564	98,881
North Germany	110,439	1,784	106,855
Berlin	115,869	1,260	264,504
Munich	24,779	558	53,805
West Germany	40,137	556	75,369
Kiel	74,643	1,455	72,125
Muenster	51,950	639	40,247
Salzgitter	542,296	8,876	367,447
Central & North Germany	215,000	3,615	279,166
TOTAL	1,288,345	20,307	1,358,397

* Includes commercial and retail units

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Portfolio Update: European Retail

• Portfolio value \$865 million
• Completed Dec 2005 \$635m
• -Since completed or under contract Feb 2006 \$230m

• Overall performance on track*

• $-97%$ occupancy
• Galerie Butovice not yet stabilised
• $-$ Average 2006 forecast yield $-6.5\%$ (net of all costs)
• Outlook
• Strong capital inflows, capitalisation rates compressing
• -Seek to selectively grow portfolio during 2006

* Portfolio at 31 December 2005

Portfolio Update: European Retail

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Portfolio Update: US Retail

• Portfolio value \$471 million
• \$26m capital expenditure commitment over 2 years
• Performance on track
• $-93%$ occupancy
• US \$282 sales p/sqft
• 10% occupancy cost
• $-$ Forecast 2006 yield $-7.6%$ (net of all costs)
• Outlook
• Selectively grow portfolio
• Leverage relationship with Colonial
• GPT asset management

Portfolio Update: European Light Industrial

• Portfolio value \$538 million

- Completed Dec 2005	\$380m
-Since completed or under contract Feb 2006	\$160m

• Portfolio target (minimum) \$1.25b

• Performance on track*

• $-92%$ occupancy
• $-\epsilon$ 3.99 p/sqm rent
• $-$ 2006 forecast yield $-$ 6.5% (net of all costs)
• Outlook
• Pipeline remains strong
• Portfolio aggregation strategy on track
• Upside through higher tenant retention
• * Portfolio at 31 December 2005

Portfolio Update: European Light Industrial

	#Assets	Tenants	GLA (sqm)	GLA %
France	5	37	46,000	9%
Netherlands	11	211	205,000	38%
Germany	10	92	289,000	53%
Total	26	340	542,000	100%

* Portfolio at mid Feb 2006

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Joint Venture: German Office

• Portfolio value \$300 million
• Completed Dec 2005 \$126m (seed asset)
• Under contract Feb 2006 $$174m$
• Market Overview
• Office market fundamentals improving
• Favourable capital markets environment (selective)
• Investment Strategy
• Location secondary cities, inner city locations
• Tenants multi tenanted, diversified
• Yields achieve spread targets, with growth potential
• Value-add increase AWLE, reduce costs, achieve scale

Joint Venture: German Office

• Wurtemburgische Portfolio
• Purchase price \$174m
• 33 properties located in secondary cities
• 20 properties represent 85% of the portfolio
• Remaining properties to be divested
• 2006 forecast yield (passing)
• $-\sqrt{a}$ cancy
• Under-rented
• Upside through vacancy and cost reduction, increased AWLE

6.6% (net of all costs)
11%
$3 - 5%$

Joint Venture: Summary

• \$3.5 billion assets acquired
• Outlook $\bullet$
• Confident of fully investing by Dec 2006
• Strong and visible pipeline of opportunities
• Earnings from JV on target
• Continuing to pursue a range of Fund Management opportunities

Capital Management

• Total assets \$10.4 billion
• Gearing of 35%
• Total borrowings \$3.6 billion
• $-$ \$2,846 million AUD
• $\epsilon$ 485 million (AUD equivalent \$782 million)
• Current effective interest rate 5.45%
• Weighted average length of debt 3 years

Capital Management: Interest Rates

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Capital Management: Foreign Exchange

	Sell Euros	Average exchange rate	AUD Equivalent
	31-Dec-05	31-Dec-05	31-Dec-05
Maturity	EUR(E M)	AUD/EUR	$AUD({$M})$
Less than 1 year	24.2	0.5789	39.0
$1 - 2$ years	31.1	0.5662	50.2
$ 2 - 3$ years	36.4	0.5668	58.6
$3 - 4$ years	41.0	0.5668	66.1
$4 - 5$ years	41.1	0.5645	66.3
Over 5 years	5.8	0.5480	9.4

Euro income hedged between 0.5789 and 0.5645 over next 5 years

In Summary

• Strong 2005 results
• Delivered on forecast of 24.4 cps distribution
• Transition successfully implemented
• Strong performance from core portfolio
• JV investment well progressed
• Outlook
• Funds management strategy
• Complete JV investment
• On track to deliver on 2006 forecasts

Questions

www.gpt.com.au