GPT GROUP — Annual Report 2011

Feb 19, 2012

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1

Agenda

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• Strategy

• Business Performance

Michael Cameron CEO

• Financial Result

• Capital Management

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Michael O’Brien CFO

Note: All information included in this presentation includes GPT owned assets and GPT’s interest in the Wholesale Funds (GWSCF and GWOF) unless otherwise stated. All retail data excludes the Queensland Homemaker City portfolio.

2

Strategy

2011 annual result Delivering on our promises

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Strong operating performance Active capital management Well positioned for growth

3

Strategy

Strong operating performance Increased operating earnings in 2011

 Operating profit of $438.8m[(1)] , up 7.0%

 Statutory profit of $246.2m

• EPS growth of 8.1%[(2)]

• DPS growth of 9.2%

• Comparable income growth of 3.6%

 Expansion through development

Growth in Realised Operating Income ($m)

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438.8
410.0
375.8
2009 2010 2011
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All numbers for the twelve months to 31 December 2011 compared with the previous corresponding period.

• (1) Statutory profit of $246.2m, adjusted for change in fair value of assets ($45.7m), release of foreign currency translation reserve $47.6m, financial instruments marked to market and foreign exchange gains/(losses) $150.3m, and other items $40.4m.

• (2) EPS defined as ROI per ordinary security.

4

Strategy

2011 performance Strong returns for investors

 For investors, GPT offers a secure, reliable investment targeting superior risk-adjusted returns over time

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Above market returns
Total securityholder returns
Targets 2011
12 months to 31 Dec 2011
EPS growth > CPI+1% 8.1% [(1)] - well ahead of 10.5%
target
Total returns > 9% 4.9% - impacted by
mark to market
derivative movement
-1.5% GPT
Leading relative Total 10.5% - well above AREIT 200
Securityholder Return AREIT index Accumulation
Index
-10.5%
ASX 200
Accumulation
Index
(1) EPS defined as ROI per ordinary security.
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5

Strategy

Capital management Active management of capital levers

• Cost of debt reduced by 80bps[(1)]

• Low gearing at 22.9% and average term of debt 5.3 years

• Activated on-market buy-back

• Completed $517 million sell-down in wholesale funds

• Strategy to opportunistically increase exposure to Industrial

• Selective asset divestment

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Effective
debt
manage-
ment
Active
Capital
portfolio Security
management
manage- buy-back
levers
ment
Leverage
via
funds
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• (1) Average cost of debt in 2011 compared to average cost in 2010.

6

Strategy

Well positioned for growth High quality core portfolio generating stable returns Total portfolio average occupancy

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Retail: 95% regional
99.1%
98.8% 98.8%
5% 95% 98.5% 98.4%
5 yr average:
Other
Regional 98.7%
Office: 100% prime
2007 2008 2009 2010 2011
43% 57%
A grade Premium
Comparable income growth
3.7% 3.6%
3.2%
Industrial: 100% prime
100%
Prime
2009 2010 2011
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7

Strategy

Well positioned for growth Platforms to accelerate performance

• Rental growth

• Development

 Expense discipline

• Funds growth

 Capital management

• Other revenue sources

• Portfolio management

• Asset acquisitions

8

Financial Result 2011 annual result summary Operating earnings per security up 8.1% and distribution up 9.2%

GPT Financial Summary

Year to 31 December ($m)	2011	2010
Total Realised Operating Income (ROI) 438.8		410.0
Changes in fair value of assets – Core 84.7		102.8
Changes in fair value of assets – Non-core (39.0)		236.8
Release of Foreign Currency Translation Reserve(FCTR) (47.6)		39.6
Financial instruments marked to market and net foreign exchangegains/(losses) (150.3)		5.2
Other (40.4)		(87.1)
A-IFRS net profit/(loss) 246.2		707.3
ROI per ordinary security (cents)(1) 22.4		20.7
Distribution per ordinary security (cents) 17.8		16.3

(1) ROI per ordinary security is post distribution on exchangeable securities.

9

Financial Result

Segment performance Strong contributions from all business units

Realised Operating Income by segment

	Year to 31 December ($m)	2011	2010	Comment
	Retail	310.1	267.3	Comparable income growth of 3.6% plus Charlestown impact
	Office	118.7	114.8	Comparable income growth of 4.0%
	Industrial	56.6	54.4	Comparable income growth of 2.8%
	Funds Management	84.2	94.3	GPT sell-down completed Distribution growth of 7.3%
	Non-core	31.9	57.7	Divestment of Ayers Rock Resort and US Seniors portfolio completed
	Corporate
	- Interest expense	(131.9)	(149.8)	Reduced amount and cost of debt
	- Corporate overheads(1)	(30.8)	(28.7)	Impacted by one off items
	Total Realised Operating Income (ROI)(2)	438.8	410.0

(1) Includes corporate tax benefit.

(2) Realised Operating Income is pre distribution on exchangeable securities.

10

Financial Result

Management expenses Income growth continues to exceed expense growth

 Comparable income growth of 3.6% outpacing comparable management expense growth of 1.5%

Expenses

Year to 31 December ($m)	2011	2010
Corporate Overheads	30.8	28.7
Portfolio Expenses	48.3	44.4
Add back: Tax Benefit	8.6	5.7
Less: One-off Items(1)	(7.4)	0.3
Ongoing Management Expenses	80.3	79.1

‘Jaws’ for year to 31 December 2011 ‘Jaws’ = 2.1% 3.6% 1.5% Comp Expense Income growth growth

(1) One-off items include redundancy costs and costs incurred on non-recurring projects.

11

Financial Result

Balance sheet Well positioned balance sheet

GPT Balance Sheet

As at 31 December	2011	2010
Total assets ($m) 9,279 9,752
Total borrowings ($m) 2,144 2,453
Net tangible assets per security ($) 3.59 3.60
Gearing (%)(1) 22.9 24.9
Look through gearing (%)(1) 24.4 29.9
Interest cover ratio (x) 4.2 3.7
Credit ratings
As at 31 December	2011	2010
Standard & Poor’s A– (stable) A– (stable)
Moody’s A3 (stable) A3 (stable)

12 (1) Based on net debt.

Capital Management

Capital management Progressive reduction in cost of debt

• Average cost of debt reduced through:

• Tight liquidity management

• Cancellation of expensive loans

• Renegotiation of existing loans

• Termination of expensive hedges as asset sale proceeds received

• Cost of debt in 2012 is earnings enhancing

Average cost of debt

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8%
7.4%
7% 6.6%
6.2%
6%
Fees
5%
Margin
4%
3%
Floating
rate
2%
Fixed rate
1%
0%
Actual 2010 Actual 2011 Target 2012
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13

Capital Management

Capital management Flat maturity profile with long tenor

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Debt maturity profile [(1)]
Drawn Facility
A$ million
1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2H
2012 2013 2014 2015 2016 2017 2018 20192019 2029
500
466
375
325 325
266 275
211 212 225 236 236 225
150 150
105 105
75 85 85
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• $150 million bond issue in January 2012

• lengthened tenor

• diversified sources of debt

• Weighted average term to maturity of 5.3 years, ahead of medium term target of > 4 years

14 (1) Pro forma – includes January 2012 Medium Term Note issue.

Capital Management

Capital management Progress on security buy-back

• Buy-back commenced On-market security buy-back 25 May 2011

As at 20 January 2012
Securities acquired	46.1m
% of securities on issue(1)	2.5%
Cost	$140.1m
Average price paid	$3.04
Average discount to NTA	15.3%
Value created(2)	$25.8m

• Completed half of current target

• Disciplined approach to deliver accretion to earnings and NTA

• (1) Proportion of the number of securities on issue at the commencement of the buy-back.

• (2) Value created calculated as the difference between the cost of securities purchased and NTA.

• Buy back period: 12 months from 25 May 2011. Current target is 5% of issued securities.

15

Capital Management

Earnings drivers Progress in removing earnings drags

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Yield on NTA [(1)]
Initiatives Update
6.6%

Target exceeded,
Efficiency gains
more opportunities
6.1%
Capital

Significant gains 5.8%
management
Reduced stake in

Completed
wholesale funds
2009 2010 2011
Sale of non
–
income producing Slow progress
assets
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(1) 2009 yield has been adjusted for the capital raising undertaken that year.

16

Investment Management

Investment Management 3.6% comparable income growth

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Retail Office Industrial
$5.3bn $2.6bn $0.8bn
GWSCF
interest GWOF
$0.4bn interest GPT
$0.7bn owned
GPT GPT
$0.8bn
owned owned
$4.9bn $1.9bn
  
Comparable income Comparable income Comparable income
growth of 3.6% growth of 4.0% growth of 2.8%
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•  

• WACR of 6.21% WACR of 7.07% WACR of 8.44% (2010: 6.21%) (2010: 7.14%) (2010: 8.48%)

Assets as at 31 December 2011. Income for the 12 months to 31 December 2011 compared to the previous corresponding period.

17

Investment Management

Investment Management – Retail High occupancy with low arrears

Key operating metrics

Year to 31 December	2011	2010
Comparable income growth 3.6% 4.7%
Comparable total centre sales growth(1) 0.3% 0.7%
Comparable specialty sales growth(1) 1.2% 0.5%
Specialty sales psm(1) $8,958 $8,801
Specialty occupancy costs(1) 17.6% 17.7%
Occupancy 99.4% 99.9%
Arrears(2) 0.5% 0.3%

• (1) Includes GPT and GWSCF assets and excludes Homemaker assets, Norton Plaza and assets under development. Growth is for the 12 months compared to the prior 12 months.

• (2) Includes GPT, GWSCF and Queensland Homemaker assets.

18

Investment Management

Investment Management – Retail Resilient income despite sales slowdown

• 1.2% specialty sales growth reflected more subdued trading conditions in the second half of 2011

• Continuing to add value through active tenancy re-mixing

 In 2012, 86% of specialty stores have structured rental increases of 4.5%

• Retail income has relatively low immediate sensitivity to sales slowdown

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Re-leasing Spreads Vacancies
Hypothetical example Hypothetical example
(2011: 2%) (2011: 0.6%)
-2.5% spread -5.0% spread -0.2% change -0.4% change
Components of earnings
-$1.1m -$2.2m Net Income -$1.5m -$3.0m
-0.06c -0.12c EPS -0.08c -0.16c
-0.3% -0.5% EPS Growth -0.4% -0.7%
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19

Investment Management

Investment Management – Retailer health Active re-mixing strategies in place

 Re-leasing spreads positive 2% in 2011

 ‘Retail barometer’ used to anticipate and pre-empt retailer issues

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 Active retail mixing strategies to minimise exposure to at-risk categories
Case study – Rouse Hill Town Centre
GLA Rent GLA Rent
(sqm) ($ p.a) (sqm) ($ p.a)
Borders 1,872 735,000 Gym 1,333
Restaurant 1 175
Restaurant 2 195
Service 70
Storage 99
Total 1,872 786,000
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20

Investment Management

Investment Management – Office Strong income growth of 4% achieved in 2011

Key operating metrics

Year to 31 December	2011	2010
Comparable income growth 4.0% 1.6%
Occupancy 94.2% 93.5%
Occupancy (including terms agreed)(1) 96.5% 97.8%
Weighted average lease expiry 4.7 years 5.2 years
Leases signed 93,651 sqm 105,744 sqm
Terms agreed at year end 13,287 sqm 18,426 sqm

 NABERS Energy rating of 5 stars including green power, highest in the sector[(2)]

(1) Excluding development leasing. 21 (2) Source: Citi Research Jan 2011.

Investment Management

Investment Management – Office Quality portfolio reflected in performance

• 57% of GPT’s Office portfolio is premium grade – the largest proportion of any Australian REIT

• Consistently high occupancy, well ahead of market average

• 83% of GPT’s portfolio is subject to fixed increases of 4%

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Quality Occupancy [(1)]
GPT v Peers GPT v National
100% 100.0%
GPT Average 97.8%
80%
97.5%
60%
96.5%
95.0%
40%
92.5%
20% 92.8%
0%
90.0%
GPT Peer 1 Peer 2 Peer 3 Peer 4 Peer 5
2006 2007 2008 2009 2010 2011
Premium Grade A Grade Other
GPT National
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(1) Occupancy including terms agreed. Source of national average: Jones Lang LaSalle Research, Dec 2011.

22

Source: GPT, Company reports.

Investment Management

Investment Management – Office environment Conditions mixed across the CBD markets

• Rising rents and positive net absorption in major CBD office markets in 2011

• Prime assets continue to perform well

• Sydney market supported by below average supply over next three years

• GPT’s exposure to financial services sector pressure limited by low expiry profile

Prime gross effective rent

Sydney CBD supply

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$/sqm 2012-2014 ‘000sqm Net increase in supply (sqm)
150
Average Gross
$1,000
Effective Rent
Forecast
$800 100
$600 Average
Average 2004-11
50 Supply
$400
Forecast
$200
0
$0 2004 2006 2008 2010 2012-14
2002 2004 2006 2008 2010
-50
Sydney CBD Melbourne CBD Brisbane CBD
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Source: Jones Lang LaSalle Research, Dec 2011.

23 Source: Jones Lang LaSalle Research, Dec 2011.

Investment Management

Investment Management – Industrial High occupancy driving income growth

• Income growth driven by structured rental increases, low vacancy and limited downtime periods

 78% of portfolio subject to fixed increases averaging 3.3%

• 9% of leases expire in 2012

Key operating metrics

Year to 31 December	2011	2010
Comparable income growth 2.8% 2.7%
Occupancy 98.4% 98.4%
Weighted average lease expiry 6.2 years 6.5 years
Leases signed 35,028 sqm 58,984 sqm

24

Investment Management

Investment Management – Industrial environment Limited supply and low vacancy support performance

 Container throughput growth indicates future positive demand

 Soft pre-lease market although more enquiries emerging

 Rents and high occupancy levels supported by below average supply

Container throughput growth[(1)] Industrial historical supply

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‘000sqm
Sydney Melbourne Brisbane
1,600
12%
9% 7.1% 7.9% 1,200
6.6% 10 year
6% average
800
3%
0% 400
(3%)
0
(6%) 2001 2003 2005 2007 2009 2011
2009 2010 2011 10 Yr CAGR
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Source: Bureau of Infrastructure, Transport and Regional Economics (BTRE). (1) TEU – Twenty foot equivalent units.

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Source: Jones Lang LaSalle Research, Q4 2011.
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25

Investment Management

Investment Management strategy Portfolio management approach

• Capital allocation framework used to actively manage the portfolio

• Analysis of historic returns and future forecast investment performance

• Informed by extensive research and market analysis

• Portfolio strategy:

• Retail, Office and Industrial only

• High quality assets

• Office and Industrial sectors are the focus of near term incremental investment

GPT Portfolio Diversity as at 31 December 2011

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Industrial
9%
Office
Retail
30%
61%
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26

Funds Management

Funds Management Solid performance for 2011

GWOF as at 31 Dec 2011	GWOF as at 31 Dec 2011
Total assets	$3.3 bn
Gearing(1)	12.9%
Occupancy	98.3%
WACR	7.24%
One year total return (post fees)	8.8%
GWSCF as at 31 Dec 2011
Total assets	$2.2 bn
Gearing(1)	11.3%
Occupancy	99.2%
WACR	6.53%
One year total return (post fees)	10.3%

Returns to GPT ($m)	2011
GWOF distribution GWSCF distribution Total distributions received GWOF fees GWSCF fees Total fees received Total Income	53.6 22.8
	76.4 14.5 9.4
	23.9
	100.3
Expenses (incl tax expense)	(16.1)
Net Income	84.2

(1) Based on gross debt.

27

Funds Management

Funds Management Significant capital raised in past 18 months

• New issue and GPT sell down completed at NTA

• Other secondaries at a 1% discount to NTA

• New and existing investors participated in the equity raisings

• Strong demand at NTA

• Funds demonstrating good liquidity

Equity Raised since June 2010	($m)
New Issue – GWOF	414
GPT sell-down: GWOF GWSCF Total GPT sell-down	275 242
	517
Other secondaries	172
Total Raised	1,103

28

Funds Management

Funds Management Enhanced returns from sell-down

 GPT has received an enhanced return of 80 basis points from the completion of its sell-down in the funds

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GPT holding at 30 June 2010 GPT holding at 31 December 2011
(Office and Retail: 33%) (Office: 23%, Retail: 20%)
3.8% (1.6%)
2.5% (1.0%)
8.8%
8.0%
6.5% 6.6%
Dist’n Fees [(1)] Segment Total Dist’n Fees [(1)] Segment Total
Yield Costs [(2)] Income Yield Costs [(2)] Income
Return Return
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(1) Includes fund, property and development management fees. 29 (2) Includes tax expense.

Development

Development $3.2bn pipeline with significant projects underway

 Highpoint and Wollongong Central developments commenced in 2011[(1)]  Agreement to lease reached with Lion Group for 100% of 5 Murray Rose

 New development opportunities actively investigated

	GPT	Funds	Total
Underway 113 558 671
Planned 895 0 895
Pipeline 1,220 380 1,600
Total 2,228 938 3,166

(1) Both Highpoint and Wollongong Central are owned by the GPT Wholesale Shopping Centre Fund.

30

Development

Development Projects underway

As at Dec 2011	Portfolio	Total Cost ($m)	Forecast to Complete ($m)	Forecast to Complete ($m)	Target Yield
			GPT	Funds
Highpoint Wollongong Central 111 Eagle St 161 Castlereagh St(1) 5 Murray Rose Retail Retail Office Office Industrial 200(2) 224 464(2) 380 60 34 0 60 0 19 102 193 61 202 0 10.0%(3) 7.0% 7.0% 6.7% 8.5%
Total 1,328 113 558 −

Development timeline – current projects

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Highpoint
Wollongong Central
111 Eagle St
161 Castlereagh St
5 Murray Rose
2012 2013 2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
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Note: Development costs exclude external co-owners’ contributions. (1) Grocon is undertaking the development of 161 Castlereagh St. (2) Includes only GPT and the Funds 66.67% share. (2) GPT yield target including fees.

31

Development

Development One One One Eagle Street update

• 53% of floor space committed vs previous forecast of 40% by PC[(1)]

• Target yield of 7% fully leased

• Norton Rose, Gadens, Ernst & Young and ANZ committed to 26,906 sqm

• Others committed total 6,929 sqm

• Leases to date have averaged $809/sqm rent and 25% incentives

• Achieved 6 star Green Star rating and targeting 5 Star NABERS Energy rating[(3)]

Leasing	Leasing
One One One Eagle St 64,000 sqm
Signed and/or committed 33,835 sqm
Fully committed target date Jul 2014
Estimated 2012 income impact -$7 million
Cost (GPT share2)	($m)
Spent to 31 Dec 2011 170
Remaining to be spent 60
Total 230

(1) Committed via Heads of Agreement or Agreement for Lease.

• (2) Excluding GPT’s ownership interest in GWOF.

• (3) New 6 Star NABERS rating opportunity currently being explored.

32

Development

Development Highpoint update

• Construction activity commenced in March 2011

• Completion on track for early 2013

• Target yield of 10% to GPT[(1)]

• Approximately 100 new specialty stores, David Jones, Woolworths and 1,000 new car spaces

• Strong interest from international flagship retailers

• Leasing campaign commenced Sept 2011 with 21 of the 103 new specialty leases already in place

Leasing	Total GLA
Highpoint 31,200 sqm
Signed and/or committed 18,200 sqm
Cost (GPT share)	($m)
Spent to 31 Dec 2011 16
Remaining to be spent 34
Total 50
Cost (GWSCF share)	($m)
Spent to 31 Dec 2011 48
Remaining to be spent 102
Total 150

(1) Includes property management and funds management fees.

33

Business Performance

Sustainability Achievements in 2011

Environment

Awards

In 2011 GPT avoided $15.9 million in costs[(1)] :

1. $1.4m of waste 2. $3.8m of water

2. $10.2m electricity 4. $0.5m gas

On target to achieve an average NABERS Energy rating of 4.5 stars (excluding Green Power) for the Office portfolio

Social

People

• 444 employees, 55% female

• $1.5m invested in local community partnerships

• Training hours above target

• 64% of employees volunteering

• New work environment: mobility and savings

• Feedback from >9,000 customers

• Culture renewal program underway

• Community Investment Plans for six retail assets

• DJSI “Gold Class” Sustainability Leaders

• Global RE Sustainability Benchmark Top Ten

• 2011 Landcom Urban Design Award Charlestown

• 2011 Green Globe Business Sustainability Award

• 2011 PCA Thinc Award for Best Sustainable Dev’t - Existing Building

• Best Office Architecture 2011 Asia Pacific Property Awards (Eagle St)

34 (1) Compared to baseline year 2005.

Outlook

2012 strategic priorities Optimising the business, building sustainable growth 1  Streamlining key business processes Optimise GPT  Minimising cost of funding 2  Actively managing the portfolio Strategically  Increasing investment in quality Industrial allocate capital 3  Equip employees Renewing GPT’s culture for high  Developing people with a focus on the future performance 4  Enhancing rental income Build sustainable  growth Building on growth platforms

35

Outlook

Well positioned for growth Platforms to accelerate performance

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Funds Other
Develop- Asset
ment + manage- + revenue + acquisitions
ment sources
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• Appointment of new resources for each growth platform

• Strategic plans in place and feasibility studies underway

• Exciting sources of additional revenue, including pilot program around energy supply and distribution

• Active assessment of acquisition opportunities

36

Senior team Focused on high performance and shaping the future

Outlook

Leadership Team

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Michael Mark Fookes Nicholas Harris Anthony Matthew Faddy O’Brien Investment Funds McNulty Property & Asset CFO Management Management Development Management

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Judy James Coyne Rosemary Phil Taylor
Barraclough Legal Kirkby People &
Strategy & Sustainability Performance
Corporate
Affairs
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37

Outlook

Outlook for 2012 External environment: headwinds and tailwinds

Headwinds

Tailwinds

• 

• Global economic slowdown, Relatively strong domestic European debt crisis economy – potential for fast turnaround

• Low consumer confidence  Limited supply pipeline of

• Subdued retail sales quality property in retail, office and industrial sectors

• Financial services job cuts  Reducing interest rates

• High household savings rate

• Entry of international retailers

38

Outlook

Outlook for 2012 Earnings and value drivers

Portfolio		Core income growth based on structured rental
income		increases and high occupancy
		Impacted by phased lease-up of One One One Eagle St
Growth		Upside from implementation of growth strategies
		Capacity for accretive asset acquisitions
Operating		Productivity and efficiency improvements
expenses		Benefits of property management internalisation
Capital		Reduced cost of debt
management		Accretion from security buy-back
Asset values		Recent transactions at robust values
		Stable valuation outlook

(1) EPS defined as Realised Operating Income (ROI) per ordinary security.

39

Outlook

Outlook for 2012

 Targeting EPS[(1)] growth of at least CPI + 1% for 2012

• Payout ratio of no less than 80% of ROI

(1) EPS defined as Realised Operating Income (ROI) per ordinary security. Assumes CPI is 3%.

40

Strategy

2011 annual result Delivering on our promises

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Strong operating performance

Active capital management Well positioned for growth

41

Contact Information

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Michael Cameron Chief Executive Officer and Managing Director Tel: +61 2 8239 3565 Mob: +61 410 437 597 Email: michael.cameron@gpt.com.au

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Michael O’Brien Judy Barraclough Chief Financial Officer Head of Strategy and Corporate Affairs Tel: +61 2 8239 3544 Tel: +61 2 8239 3752 Mob: +61 417 691 028 Mob: +61 418 962 301 Email: michael.o’brien@gpt.com.au Email: judy.barraclough@gpt.com.au

The GPT Group ABN 27 107 426 504 Level 51 MLC Centre 19 Martin Place Sydney NSW 2000 Tel: +61 2 8239 3555 Fax:+61 2 9225 9318

www.gpt.com.au

42

Disclaimer

The information provided in this presentation has been prepared by the GPT Group comprising GPT RE Limited (ACN 107 426 504) AFSL (286511), as responsible entity of the General Property Trust, and GPT Management Holdings Limited (ACN 113 510 188).

The information provided in this presentation is for general information only. It is not intended to be investment, legal or other advice and should not be relied upon as such. You should make your own assessment of, or obtain professional advice about, the information described in this paper to determine whether it is appropriate for you.

You should note that returns from all investments may fluctuate and that past performance is not necessarily a guide to future performance. Furthermore, while every effort is made to provide accurate and complete information, the GPT Group does not represent or warrant that the information in this presentation is free from errors or omissions, is complete or is suitable for your intended use. In particular, no representation or warranty is given as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in the information - such material is, by its nature, subject to significant uncertainties and contingencies. To the maximum extent permitted by law, the GPT Group, its related companies, officers, employees and agents will not be liable to you in any way for any loss, damage, cost or expense (whether direct or indirect) howsoever arising in connection with the contents of, or any errors or omissions in, this presentation.

Information is stated as at 31 December 2011 unless otherwise indicated.

All values are expressed in Australian currency unless otherwise indicated.

ROI is reported in the Segment Note disclosures which are included in the audited financial report of GPT Group for the year ended 31 December 2011.

To provide information that reflects the Directors’ assessment of the net profit attributable to stapled securityholders calculated in accordance with Australian Accounting Standards, certain significant items that are relevant to an understanding of GPT’s result have been identified. The reconciliation ROI to Statutory Profit is useful as ROI is the measure of how GPT’s profitability is assessed.

ROI is a financial measure that is based on the profit under Australian Accounting Standards adjusted for certain unrealised items, non-cash items, gains or losses on investments or other items the Directors determine to be nonrecurring or capital in nature. ROI is not prescribed by any Australian Accounting Standards. The adjustments that reconcile the ROI to the Statutory Profit for the year may change from time to time, depending on changes in accounting standards and/or the Directors’ assessment of items that are non-recurring or capital in nature.

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