Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Sign up Log in

GPT GROUP Annual Report 2014

Feb 12, 2014

65009_rns_2014-02-12_ad9ca740-d883-43b9-ae7a-46595533831a.pdf

Annual Report

Open in viewer

Opens in your device viewer

GPT 2013 ANNUAL RESULT 13 FEBRUARY 2014

2013 ANNUAL RESULT HIGHLIGHTS

Delivering on strategy

2013 ANNUAL RESULT HIGHLIGHTS

High level of activity over the year

Significant Leasing Activity

  • 551 retail deals
  • 123,700 sqm office
  • 156,600 sqm logistics

Portfolio

  • \$92m valuation uplift
  • \$352m distributions paid

Capital Management

  • HKD issue and USPP
  • Security buy-back

\$1.1 billion Transactions

Acquisitions

  • 8 Exhibition Street
  • 3 logistics assets
  • Seed asset (Metropolitan office fund)

Disposals

  • Erina Fair
  • Carlingford Court
  • Homemaker Centres

Development

  • Highpoint expansion
  • Liberty Place
  • \$300m developments commenced

Funds Management

  • 11.2% total return
  • Internalisation of 8 GWOF assets

Sustainability

  • Two Green Globes
  • GRESB
  • DJSI

OUR APPROACH

Target earnings composition

90% earnings from Australian Investment Property

  • Driven by Total Return
  • Sector specialists in a diversified framework
  • Effective capital allocation core to performance
  • Flexibility around portfolio weightings
  • Development to enhance returns
  • Strong alignment of interest
  • Frugal approach with fortress balance sheet

Grow to 10% active earnings

  • Targeting \$10bn increase in Australian FUM
  • Maintains low cost of capital
  • Secure, stable earnings
  • Development to enhance returns and grow FUM
  • Rigorous corporate governance structure

OUR POSITION

GPT's value opportunity

Quality Portfolio

  • Positioned for long term performance
  • Active portfolio approach
  • Diversified with multi-sector expertise

OUR OUTLOOKTargeting Total Return > 9% in 2014

C
O
O
E
N
M
Y		 T
h
i
i
d
f
d
f
i
d
i
A
l
i
's
f
t
t
e
r
e
s
e
e
n
c
e
o
r
e
n
e
e
c
o
n
e
n
c
e
n
s
r
a
a
r
e

v
w
u
u
u
R
E
T
A
I
L		 C
d
i
h
h
d
t
t
o
n
s
u
m
e
r
s
p
e
n
n
g
a
s
g
a
e
r
e
m
o
m
e
n
u
m

R
i
l
C
l
l
l
d
b
f
i
t
t
t
e
g
o
n
a
e
n
r
e
s
a
r
e
e
p
a
c
e
o
e
n
e

w
W
l
l
i
d
i
i
i
i
l
l
b
l
i
i
d
t
t
e
p
r
c
e
a
c
q
s
o
n
s
e
m
e

u
w
O
C
F
F
I
E		 f
f
f
L
d
i
i
d
i
i
i
l
i
i
i
i
d
d
t
t
t
t
t
e
a
n
g
n
c
a
o
r
s
p
o
n
o
a
n
n
e
c
o
n
p
o
n
n
o
c
e
e
m
a
n

C
i
d
d
i
k
i
h
h
d
i
f
i
f
i
l
t
t
t
o
n
n
u
e
e
-r
s
n
g
r
o
u
g
r
e
u
c
n
g
u
u
r
e
e
x
p
r
y
p
r
o
e

S
S
f
f
f
l
i
i
i
i
i
l
l
i
d
B
l
h
d
i
i
i
i
i
t
t
t
t
t
t
e
e
c
e
a
c
q
s
o
n
s
p
r
o
e
a
a
n
c
e
e
e
e
r
s
c
a
o
n
n
e
n
a
n
o
e
r

v
u
w
v
v
O
G
S
C
S
L
I
T
I		 S
l
/
d
d
b
l
i
l
l
i
d
i
i
i
d
l
t
t
t
t
u
p
p
y
e
m
a
n
a
a
n
c
e
w
c
o
n
n
u
e
o
r
v
e
a
c
v
y
a
n
v
a
u
e

f
A
i
i
i
i
h
l
i
i
d
t
t
t
t
c
q
s
o
n
o
a
s
s
e
s
a
a
o
n
p
s
e

u
w
v
u
u
C
i
h
d
l
b
l
i
h
d
i
2
0
1
3
t
t
t
t
t
o
n
n
u
e
e
e
v
e
o
p
m
e
n
m
o
m
e
n
u
m
e
s
a
s
e
n
2
0
1
4
T
A
R
G
E
T		 T
l
R
9
%
t
t
o
a
e
u
r
n

>
S
E
P
h
f
3
%
t
g
r
o
o
w

i
i
i
i
f
D
b
1
0
0
%
A
F
F
O
t
t
t
t
s
r
u
o
n
p
a
y
o
u
r
a
o
o

:

2013 ANNUAL RESULT SUMMARY

6.1% increase in earnings per security

\$
h
D
b
(
)
1
2
3
1
t
t
m
o
n
s
o
e
c
e
m
e
r
m		 2
0
1
3		 2
0
1
2		 C
h
a
n
g
e
T
l
R
l
i
d
O
i
I
(
R
O
I
)
t
t
o
a
e
a
s
e
p
e
r
a
n
g
n
c
o
m
e		 4
7
1.
8		 5
4
6.
4
3
4
%
V
l
i
t
t
a
u
a
o
n
m
o
v
e
m
e
n
s		 9
2
2		 1
9
6
1
F
i
i
l
i
k
d
k
d
F
X
t
t
t
t
t
n
a
n
c
a
n
s
r
u
m
e
n
s
m
a
r
e
o
m
a
r
e
a
n
m
o
v
e
m
e
n
s		 2
0
3		 (
)
4
0
4
(
)
O
1
h
t
e
r		 (
1
2
8
)		 (
1
6
)
7
N
P
f
i
A
f
T
t
t
t
e
r
o
e
r
a
x		 5
1.
5
7		 5
9
4.
5
3
9
%
(
)
R
O
I
d
i
i
t
t
p
e
r
o
r
n
a
r
y
s
e
c
u
r
y
c
e
n
s		 2
5.
7		 2
4.
2
6
1
%
(
2
)
(
)
D
i
i
b
i
d
i
i
t
t
t
t
s
r
o
n
p
e
r
o
r
n
a
r
s
e
c
r
c
e
n
s
u
y
u
y		 2
0
4		 1
9
3
%
5
7
T
l
R
l
i
d
O
i
I
(
R
O
I
)
t
t
o
a
e
a
s
e
p
e
r
a
n
g
n
c
o
m
e		 4
7
1.
8		 5
4
6.
4
3
4
%
L
O
f
f
i
t
e
s
s
:
n
e-
o
e
m
s		 0
9		 (
)
1
3
5
L
D
i
i
b
i
h
b
l
i
i
t
t
t
e
s
s
:
s
r
u
o
n
o
n
e
x
c
a
n
g
e
a
e
s
e
c
u
r
e
s		 (
)
2
5
0		 (
)
2
5
0
F
d
F
O
i
(
F
F
O
)
t
n
s
r
o
m
p
e
r
a
o
n
s
u		 4
4
7.
7		 4
1
7.
9
7
1
%
L
M
i
d
l
i
i
t
t
e
s
s
:
a
n
e
n
a
n
c
e
c
a
p
e
x
a
n
e
a
s
e
n
c
e
n
v
e
s		 (
)
9
1.
0		 (
)
7
4
5
A
d
j
d
F
d
F
O
i
(
A
F
F
O
)
t
t
s
e
n
s
r
o
m
p
e
r
a
o
n
s
u
u		 3
5
6.
7		 3
4
3.
4
3
9
%

  1. Other includes amortisation expense, profit/(loss) on sale, one-off items and the relevant tax impact

  2. Represents distributions declared in 2013 less a 2012 distribution of 5.1c declared and paid in 2013

2013 ANNUAL RESULT SUMMARY

Management divisions increase profitability

\$
h
D
b
(
)
1
2
3
1
t
t
m
o
n
s
o
e
c
e
m
e
r
m		 2
0
1
3		 2
0
1
2		 C
h
a
n
g
e		 D
i
f
t
t
t
e
s
m
e
n
o
a
s
s
e
s
v
R
i
l
N
O
I
t
e
a		 2
6
4
3		 3
0
0
9		 1
2
2
%
O
f
f
i
N
O
I
c
e		 1
4
4
1		 1
3
5
6		 6
3
%		 F
l
l
i
l
i
f
O
O
u
y
e
a
r
n
c
u
s
o
n
o
n
e
n
e
O
S
E
l
t
t
n
e
a
g
e
r
e
e
L
i
i
N
O
I
t
o
g
s
c
s		 7
6
2		 6
9
3		 1
0
0
%
F
d
D
i
i
b
i
t
t
u
n
s
r
u
o
n
s		 7
4
9		 6
8
2		 9
8
%		 A
i
i
i
d
d
l
t
t
c
q
s
o
n
s
a
n
e
e
o
p
m
e
n
s
u
v
I
M
E
t
t
t
n
v
e
s
m
e
n
a
n
a
g
e
m
e
n
x
p
e
n
s
e
s		 (
)
7
1		 (
)
8
9		 I
d
i
i
b
h
t
t
t
n
c
r
e
a
s
e
n
e
s
m
e
n
n
o
v
f
d
d
f
t
u
n
s
a
n
s
r
o
n
g
e
r
p
e
r
o
r
m
a
n
c
e
I
M
t
t
t
n
v
e
s
m
e
n
a
n
a
g
e
m
e
n		 5
5
2.
4		 5
6
5.
1
A
M
t
t
s
s
e
a
n
a
g
e
m
e
n		 5.
8		 (
)
6.
1		 A
M
d
t
t
s
s
e
a
n
a
g
e
m
e
n
a
n
D
l
R
M
P
f
i
b
l
D
l
R
i
l
&
M
j
P
j
t –
t
t
e
v
e
o
p
m
e
n
e
a
a
o
r
r
o
e
c
s		 2.
8		 (
)
8.
3		 (
)
t
t
e
e
o
p
m
e
n
p
r
o
a
e
v
D
l
L
i
i
t –
t
e
v
e
o
p
m
e
n
o
g
s
c
s		 (
)
1.
8		 (
)
0.
7		 I
i
h
i
t
t
t
n
v
e
s
m
e
n
n
g
r
o
w
n
D
l
(
L
i
i
)
t
t
e
e
o
p
m
e
n
o
g
s
c
s
v
F
d
M
t
n
s
a
n
a
g
e
m
e
n
u		 2
1.
7		 1
6.
0		 3
6
%
5		 h
i
F
U
M
7.
5
%
t
g
r
o
w
n
N
I
E
t
t
t
e
n
e
r
e
s
x
p
e
n
s
e		 (
)
9
5
5		 (
)
1
0
3
7		 7
9
%
U
l
l
d
M
&
A
d
i
i
i
E
t
t
t
t
n
a
o
c
a
e
a
n
a
g
e
m
e
n
m
n
s
r
a
o
n
p
e
n
s
e
s
x		 (
)
2
2
1		 (
)
2
2
3		 0
b
i
i
d
i
i
5
t
t
a
s
s
p
o
n
r
e
u
c
o
n
n
f
d
b
t
t
a
e
r
a
g
e
c
o
s
o
e
v
/
T
(
E
)
B
f
i
t
a
p
e
n
s
e
e
n
e
x
x		 (
)
2
7		 1.
9		 B
i
t
u
s
n
e
s
s
s
e
m
e
n
s
n
o
w
C
O
N
R
l
i
d
i
I
t
o
n-
o
r
e
e
a
s
e
p
e
r
a
n
g
n
c
o
m
e		 1
1.
2		 1
4
5		 g
f
i
b
l
t
p
r
o
a
e
R
l
i
d
O
i
I
t
e
a
s
e
p
e
r
a
n
g
n
c
o
m
e		 4
1.
8
7		 4
5
6.
4		 3
4
%

CAPITAL MANAGEMENT

A fortress balance sheet

A
D
b
3
1
t
s
a
e
c
e
m
e
r		 2
0
1
3		 2
0
1
2		 C
h
a
n
g
e
N
i
b
l
i
t
t
t
t
e
a
n
g
e
a
s
s
e
s
p
e
r
s
e
c
r
u
y		 \$
3
9
7		 (
)
\$
1
3
3
7		 1
6
%		 I
i
l
i
f
5
t
n
c
r
e
a
s
e
n
a
a
o
n
s
o
c
v
u
l
d
i
i
M
T
M
f
1
t
p
u
s
e
r
v
a
v
e
s
o
c
T
l
b
i
t
o
a
o
r
r
o
w
n
g
s		 \$
2
3
1
0
m
,		 \$
2
1
4
4
m
,		 7
8
%
(
)
2
G
i
e
a
r
n
g		 2
2
3
%		 2
1
%
7		 6
0
b
p
s
W
i
h
d
f
d
b
t
t
t
e
g
e
a
v
e
r
a
g
e
c
o
s
o
e		 5
1
%		 5
6
%		 b
5
0
p
s		 O
f
h
l
t
t
n
e
o
e
o
w
e
s
i
h
A
R
E
I
T
t
t
n
e
s
e
c
o
r
W
i
h
d
i
t
t
t
t
t
e
g
e
a
e
r
a
g
e
e
r
m
o
m
a
r
v
u
y		 5
5
e
a
r
s
y		 4
5
e
a
r
s
y		 0
1
e
a
r
s
y		 B
f
i
f
H
K
D
d
U
S
P
P
t
e
n
e
o
a
n
b
d
i
o
n
s
s
u
e
s
(
2
)
L
k
h
h
i
t
o
o
r
o
u
g
g
e
a
r
n
g		 2
3
2
%		 2
3
9
%		 b
7
0
p
s
I
i
t
t
t
n
e
r
e
s
c
o
e
r
r
a
o
v		 5
5
x		 1
5
x		 0
4
x
f
W
i
h
d
i
t
t
t
t
e
g
e
a
e
r
a
g
e
e
r
m
o
n
e
r
e
s
v
h
d
i
t
r
a
e
e
g
n
g		 5
9
y
e
a
r
s		 2
4
y
e
a
r
s		 3
5
y
e
a
r
s		 h
d
i
i
l
7
2
%
e
g
n
g
n
p
a
c
e

  1. Includes final 2012 distribution of 5.1c declared and paid in 2013

  2. Based on net debt

Total Return analysis

  1. Made up of 20.4c distribution for 2013 plus final 2012 distribution of 5.1c declared and paid in 2013

Asset portfolio delivered an 8.0% Total Portfolio Return

Total Portfolio Return(1) 12 months to 31 December 2013

  1. 1 and 3 year unlevered returns calculated by IPD. These include equity interests in the wholesale funds and exclude logistics development land. 10 year returns exclude equity interest in the wholesale funds, homemaker centres, logistics development land and any divestments.

Retail: 2013 highlights

  • Solid income growth supported by high occupancy and fixed structured reviews
  • Improvement in sales growth over the second half
  • Enhanced portfolio composition with the divestment of Erina Fair, Homemaker Centres and Carlingford Court
  • Successful delivery of the Highpoint development
  • Progression of the \$1.2 billion retail development pipeline

  • GWSCF delivers sector leading performance

    1. Source: Mercer/IPD
    1. For 100% of the asset. GPT owns a 16.7% share on balance sheet and GWSCF owns a 50% share in the fund.

Retail: High occupancy with solid comparable income growth

h
D
b
1
2
3
1
t
t
m
o
n
s
o
e
c
e
m
e
r		 2
0
1
3		 2
0
1
2
T
l
P
f
l
i
R
t
t
t
o
a
o
r
o
o
e
u
r
n		 7
5
%		 8
4
%
C
b
l
i
h
t
o
m
p
a
r
a
e
n
c
o
m
e
g
r
o
w		 2
5
%		 3
0
%
(
)
1
C
b
l
l
l
h
t
t
t
t
o
m
p
a
r
a
e
o
a
c
e
n
r
e
s
a
e
s
g
r
o
w		 1
1
%		 1
3
%
(
)
1
C
b
l
i
l
l
h
t
t
o
m
p
a
r
a
e
s
p
e
c
a
y
s
a
e
s
g
r
o
w		 1
8
%		 1
5
%
(
)
1
S
i
l
l
t
p
e
c
a
y
s
a
e
s
p
s
m		 \$
9
4
5
8
,		 \$
8
9
6
4
,
(
)
1
S
i
l
t
t
p
e
c
a
y
o
c
c
u
p
a
n
c
y
c
o
s
s		 1
8
1
%		 1
7
9
%
O
c
c
p
a
n
c
u
y		 9
9
6
%		 9
9
5
%
N
l
i
i
t
t
e
a
a
o
n
n
c
r
e
a
s
e
v
u		 \$
4
2
9
m		 \$
1
0
3
6
m
W
i
h
d
i
l
i
i
t
t
t
t
e
g
e
a
v
e
r
a
g
e
c
a
p
a
s
a
o
n
r
a
e		 5
9
9
%		 6
0
7
%
  1. Includes GPT and GWSCF assets and excludes assets under development. Growth is for the 12 months compared to the prior 12 months

Retail: Wealth effect fuelling recent momentum and improved outlook

Headwinds

  • COGS pressure from falling AUD
  • Business costs pressure

Tailwinds

  • Improving consumer confidence
  • Accelerating retail sales growth
  • Online growth slowing
  • International entrants

Portfolio Implications

  • Improved sales growth
    1. Data source: ABS Retail Trade, seasonally adjusted, monthly % change from corresponding month of prior year
    1. Data source: NAB Online Retail Sales Index, monthly % change from corresponding month of prior year

Retail: Continue to invest in prime regional centres

  • Maintain focus on dominant regionals
  • Progress the \$1.2 billion retail development pipeline
  • Reposition Dandenong for sale

  • Improve retention levels

    1. Source: IPD September 2013, applied and charted by GPT.
    1. Source: ABS (trade area weighting applied by GPT)
    1. Source: ABS (Aus benchmark)

Office: 2013 highlights

  1. Source: Mercer/IPD

  2. Expiries from 2014-2016 reduced from 40% to 24%(1)

  3. Strong total portfolio return of 8.8%
  4. 123,700 sqm of signed leases (12,000 sqm at HOA)
  5. Internalised property management for \$3 billion of assets
  6. Acquisition of 8 Exhibition Street by GWOF and subsequent releasing of major tenants
  7. Completion of \$780 million Liberty Place development
  8. GWOF #1 performing office fund with a 10.0% total return(2)

Office: Strong total return in difficult leasing environment

1
2
h
3
1
D
b
t
t
m
o
n
s
o
e
c
e
m
e
r		 2
0
1
3		 2
0
1
2
T
l
P
f
l
i
R
t
t
t
o
a
o
r
o
o
e
u
r
n		 8
8
%		 9
2
%
C
b
l
i
h
t
o
m
p
a
r
a
e
n
c
o
m
e
g
r
o
w		 0
%
7		 3
8
%
(
)
1
O
c
c
u
p
a
n
c
y		 9
0
6
%		 9
5
8
%
W
i
h
d
l
i
t
e
g
e
a
e
r
a
g
e
e
a
s
e
e
p
r
v
x
y		 8
5
e
a
r
s
y		 4
5
e
a
r
s
y
L
i
d
e
a
s
e
s
s
g
n
e		 1
2
3
0
0
7
s
q
m
,		 1
3
6
4
6
5
s
q
m
,
T
d
i
d
d
t
e
r
m
s
a
g
r
e
e
a
p
e
r
o
e
n		 1
2
0
1
5
s
q
m
,		 3
6
4
0
9
s
q
m
,
N
l
i
i
t
t
e
a
a
o
n
n
c
r
e
a
s
e
v
u		 \$
3
3
5
m		 \$
9
0
5
m
W
i
h
d
i
l
i
i
t
t
t
t
e
g
e
a
v
e
r
a
g
e
c
a
p
a
s
a
o
n
r
a
e		 6
7
2
%		 6
8
6
%

Office: Difficult fundamentals however beyond the trough

35%

Leading property indicators highlight mid 2013 as the trough in the cycle

Eastern Seaboard CBD Office Markets:

However, likely to be subdued growth in the short term

Prime Rents v IncentivesFace Rent %QoQ (LHS) 31%2.0%3.0%4.0%

Eastern Seaboard CBD Office: Annual Net Absorption

Source: Jones Lang LaSalle, GPT Research

Office: Enhancing the portfolio

2012-2013: De-risking Portfolio

  • De-risking future lease expiries
  • Leasing to drive total return
  • Internalisation of property management
  • Delivered strong total return

Lease Expiry (% by area) at Dec-11 vs. Dec-13

2014 Priorities

  • Enhance portfolio diversification
  • Maintain focus on prime assets
  • Repositioning of MLC Centre
  • Leasing of existing vacancy
  • Completion of 150 Collins Street

Logistics: 2013 highlights

Achieved initial growth targets 8.6% Total Portfolio Return\$107 million acquisitions \$377 million development product underway

  • Initial growth strategy target achieved(1)
  • Strong portfolio performance with 8.6% total portfolio return
  • \$107 million of investment product acquired
  • \$377 million of development product committed
  • 8 year+ WALE post completion of developments
  • Renewal of major tenant at Rosehill

Logistics: Maintaining strong performance

h
D
b
1
2
3
1
t
t
m
o
n
s
o
e
c
e
m
e
r		 2
0
1
3		 2
0
1
2
f
T
l
P
l
i
R
t
t
t
o
a
o
r
o
o
e
r
n
u		 8
6
%		 1
1
%
5
C
b
l
i
h
t
o
m
p
a
r
a
e
n
c
o
m
e
g
r
o
w		 1
0
%		 2
7
%
O
c
c
p
a
n
c
u
y		 9
6
2
%		 9
8
2
%
W
i
h
d
l
i
t
e
g
e
a
e
r
a
g
e
e
a
s
e
e
p
r
v
x
y		 1
5
e
a
r
s
y		 8
5
e
a
r
s
y
(
1
)
L
i
d
e
a
s
e
s
s
g
n
e		 1
5
6
6
3
9
s
q
m
,		 6
8
1
3
3
s
q
m
,
/
(
)
N
l
i
i
d
t
t
e
a
a
o
n
n
c
r
e
a
s
e
e
c
r
e
a
s
e
v
u		 \$
2
9
m		 \$
(
)
1
1
6
m
W
i
h
d
i
l
i
i
t
t
t
t
e
g
e
a
v
e
r
a
g
e
c
a
p
a
s
a
o
n
r
a
e		 8
3
3
%		 8
3
0
%

Logistics: Industrial market providing steady performance

  • Steady level of supply forecast for 2014
  • Greatest activity in western Sydney and Melbourne's west
  • Positive capital and rental growth

Australian Industrial Market Supply

Source: Jones Lang LaSalle, GPT Research

Logistics: Continuing to opportunistically expand the platform

S
2
0
1
2
2
0
1
4
G
h
t
t
t
r
o
w
r
a
e
g
y
:
-
P
h
1
a
s
e
C
i
l
t
a
p
a
V
l
a
u
e		 A
e
r
a
g
e
v
W
A
L
E		 i
Y
l
d
e
A
i
i
i
t
c
q
u
s
o
n
s		 \$
2
2
2
i
l
l
i
m
o
n		 3
2
y
e
a
r
s		 9
1
%
D
l
t
e
v
e
o
p
m
e
n
s		 \$
3
7
7
i
l
l
i
m
o
n		 1
7
4
y
e
a
r
s		 8
2
%
P
f
l
i
t
t
o
r
o
o
p
o
s
d
l
t
e
e
o
p
m
e
n
s
v		 \$
1,
4
2
9
i
l
l
i
m
o
n		 8
7
y
e
a
r
s		 8
1
%

  • Continue to grow platform
  • Reinvestment in the development pipeline
  • Logistics fund opportunities
  • Releasing of short term WALE
  • Progress planning for town centre site at Sydney Olympic Park
  • Recycling of non core assets

Targeting \$10 billion increase in FUM

  • \$110 million seed asset acquisition in 2013 (Optus Centre, Brisbane)
  • \$381 million in developments underway
  • \$1.2 billion in acquisition agreements in relation to CPA bid

Funds Management Growth Pathway

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 2013 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 financial report of The GPT Group for the year ended 31 December 2013.

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 non-recurring or capital in nature. ROI is not prescribed by any Australian Accounting Standards. The adjustments that reconcile the ROI to the Statutory Profit after tax 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.

GPT 2013 ANNUAL RESULT APPENDICES

RETAIL

Portfolio remains resilient despite subdued sales environment

  • 21 vacancies across the GPT and GWSCF portfolios
  • Critical retailer count stable
  • Leasing spreads of -5.2% representing \$1.9m p.a. of income
  • Holdovers represent 105 shops, consistent with June 2013
  • Significant upside potential from increase in tenant retention to more normalised levels
h
D
b
1
2
3
1
t
t
m
o
n
s
o
e
c
e
m
e
r		 2
0
1
3		 2
0
1
2
(
)
1
V
i
a
c
a
n
c
e
s		 2
1		 2
6
(
)
2
'C
i
i
l
'
i
l
t
t
r
c
a
r
e
a
e
r
s		 4
0		 4
2
H
l
d
o
o
v
e
r
s		 3
0
%		 1
1
%
A
%
l
b
i
l
l
i
r
r
e
a
r
s
a
n
n
a
n
g
s
:
u		 0
%
5		 0
%
5
B
d
d
b
t
a
e
s		 \$
0
2
5
m		 \$
0
2
4
m
(
)
1
C
f
f
T
i
t
e
n
r
e
r
a
c		 0
-		 2
%
  1. Defined as retailers classified as Category 5 in GPT's Critical Retailer Barometer.

1. Excludes development impacted centres (2013: Dandenong and Wollongong Central, 2012: Highpoint and Wollongong Central)

RETAIL

Well positioned, dominant assets perform strongly

Melbourne Central

  • 9.6% total return in 2013
  • Valuation at \$998.2 m (3.1% growth)
  • Strong positioning in market
  • CBD Location (office tower; train station; RMIT University)

  • 44 million annual traffic

Rouse Hill Town Centre

  • Specialty MAT sales growth of 5.5%
  • 5 year anniversary with 89 leasing deals completed, strong tenant retention
  • Population growth forecast of 3.5% average annual growth (2013-2026)(1)
  • Future infrastructure (NWRL) strengthens asset (due 2018)

Charlestown Square

  • 3 years post development; specialty sales of \$9,078psm; 3.2% specialty MAT growth; 16.9% specialty occupancy cost
  • 2015 renewal profile and remixing opportunities

Highpoint Shopping Centre

  • 10.6% total return in 2013
  • Recent expansion delivered a revaluation uplift of \$210 m
  • Dominant positioning in market
  • Further value through masterplanning

  • Specialty sales of \$10,737psm
  • Gross state product growth of 5.6% in FY12/13(2)
  • Dominant positioning in market
  • Further value from incremental developments

Sunshine Plaza

  • Specialty sales of \$11,269psm
  • Valuation at \$399.2m (3.0% growth)
  • Dominant positioning in the market
  • Population growth forecast of 2.3% average annual growth (2013-2026)(1)

  • DA approval for additional 35,731sqm

  • Source: Location IQ / GPT Research. 2. Source: ABS Australian National Accounts – State Accounts

RETAILDevelop when the time is right

Casuarina Square – mixed use and a staged approach to development

STAGE 1Mixed use

Progress:

  • DA approved for student accommodation
  • Development cost \$35m
  • Development IRR >13%

STAGE 2Leisure & Entertainment

Progress:

DA approved STAGE 3Myer Expansion

Progress:

  • DA approved
  • Agreement for Lease with Myer
  • Timing to meet market conditions

Leasing to enhance value

  • over 101 transactions
  • Continuing to de-risk portfolio
  • 24% expiring over 2014-16
  • 16% reduction since Dec 11
  • Maintaining strong lease covenants
  • Average fixed 4% increases

136,000 sqm leased or at HoA Major leasing transactions completed in 2013

A
t
s
s
e		 T
t
e
n
a
n		 A
r
e
a
(
)
s
q
m
S
2
P
k
t
t
a
r
r
e
e		 C
i
i
t		 1
8
4
6
9
,
S
8
E
h
i
b
i
i
t
t
t
o
n
r
e
e
x		 E
&
Y
t
r
n
s
o
n
g
u		 1
4
8
8
8
,
F
P
l
1
a
r
r
e
r
a
c
e		 M
i
E
l
l
i
t
n
e
r
s
o
n		 9
5
0
3
,
S
A
l
i
t
u
s
r
a
a
q
u
a
r
e		 H
W
L
E
b
h
t
s
w
o
r		 6
1
9
2
,
S
A
l
i
t
s
r
a
a
q
a
r
e
u
u		 O
i
i
E
r
g
n
n
e
r
g
y		 1
4
5
5
,
S
8
E
h
i
b
i
i
t
t
t
o
n
r
e
e
x		 S
U
B		 4
9
4
7
,
C
M
l
b
l
t
e
o
r
n
e
e
n
r
a
u		 C
A
M
A		 3
0
8
5
,
C
M
l
b
l
t
e
o
r
n
e
e
n
r
a
u		 C
R
i
b
k
g
o
o
e
y		 2
2
2
9
,

Structure to create value

Proven Asset Management

  • 9.5% portfolio IRR over 10 years
  • Melbourne Central Tower: 10.4% total return in 2013 post internalisation of management

Strong Leasing Capability

  • Research led approach
  • Average 120,000 sqm pa leased over last 3 years
  • Reduced 2014-2016 expiry profile

Development

Acquisitions including fund-throughs -Liberty Place/150 Collins Street

  • Enhance assets
  • -MLC Centre
  • 530 Collins

Leasing to Create Value

Minimum Leasing Standards

  • minimum fixed increases
  • make good requirements
  • bank guarantees etc.

Opportunities to maximise value

Australia Square, Sydney

  • 11.5% total return in 2013
  • Renewal of three major tenants
  • Major tower capex completed
  • Focus on branding and site optimisation

2 Park Street, Sydney

  • Releasing of Citi hand back floors
  • Enhance value by maintaining premium services at competitive rental price point

Melbourne Central Tower

  • 10.4% total return in 2013
  • Well positioned with strong WALE
  • Further value add through innovative initiatives

1 Farrer Place, Sydney

  • Focus on tenant retention and leasing of GMT
  • Enhance IRR by de-risking cashflow

MLC Centre, Sydney

  • Progress repositioning
  • Execute capital works
  • Deliver retail redevelopment
  • Enhance value on completion
  • Refurbish/release vacant space

One One One Eagle Street

  • Focus on leasing remaining vacancy
  • Maintain asset as leading office building in market
  • Precinct opportunities

Update on major near term expiries

A
t
s
s
e		 T
t
e
n
a
n		 A
r
e
a
(
)
s
q
m		 E
i
p
r
x
y		 P
f
l
i
t
o
r
o
o
I
(
%
)
t
m
p
a
c		 P
r
o
g
r
e
s
s
S
A
l
i
t
u
s
r
a
a
q
u
a
r
e		 V
t
a
c
a
n		 4
3
1
7
,		 0
7
%		 h
l
f
l
l
i
3
t
o
e
o
o
r
s
p
s
s
e
s
w
u
u
,
P
k
S
2
t
t
a
r
r
e
e		 V
t
a
c
a
n		 2
4
9
5
,		 0
4
%		 f
l
/
i
5
t
t
p
a
r
o
o
r
s
s
e
s
u
C
C
M
L
t
e
n
r
e		 V
t
a
c
a
n		 2
3
4
9
3
,		 3
%
7		 L
l
2
3
3
9
6
3
l
i
t
e
v
e
s
p
u
s
s
u
e
s
-
,
1
F
P
l
a
r
r
e
r
a
c
e		 V
t
a
c
a
n		 9
2
4
5
,		 0
%
5		 G
P
T
L
l
4
3
4
l
i
5
t
e
v
e
s
p
u
s
s
u
e
s
-
,
C
M
l
b
l
T
t
e
o
u
r
n
e
e
n
r
a
o
w
e
r		 V
t
a
c
a
n		 6
7
5
7
,		 2
4
%		 L
l
4
2
4
4
l
i
t
e
e
s
p
s
s
e
s
v
u
u
-
,
E
l
S
1
1
1
t
t
a
g
e
r
e
e		 V
t
a
c
a
n		 9
9
6
3
,		 1
0
%		 I
i
i
t
t
n
n
e
g
o
a
o
n
s
M
j
2
0
1
4
i
i
a
o
r
e
x
p
r
e
s
C
M
l
b
l
T
t
e
o
u
r
n
e
e
n
r
a
o
w
e
r		 C
S
A		 8
6
5
7
,		 M
1
4
a
y		 1
8
%		 I
l
i
i
t
t
n
r
e
n
e
w
a
n
e
g
o
a
o
n
s
1
F
P
l
a
r
r
e
r
a
c
e		 C
o
r
r
s		 3
1
7
7
,		 M
1
4
a
y		 0
6
%		 A
i
l
k
i
t
t
c
e
m
a
r
e
n
g
v
y
S
2
P
k
t
t
a
r
r
e
e		 C
i
i
t		 6
8
9
1
,		 J
1
4
n
u		 1
1
%		 A
i
l
k
i
t
t
c
v
e
y
m
a
r
e
n
g
F
P
l
1
a
r
r
e
r
a
c
e		 S
G
t
t
t
a
e
o
v		 2
0
4
0
6
,		 D
1
4
e
c		 1
6
%		 l
d
M
i
E
l
l
i
9
5
0
3
t
t
s
q
m
e
a
s
e
o
n
e
r
s
o
n
,
M
j
2
0
1
5
i
i
a
o
r
e
x
p
r
e
s
S
8
1
8
B
k
t
t
o
u
r
e
r
e
e		 E
i
r
c
s
s
o
n		 3
8
9
5
,		 D
1
5
e
c		 1
1
%		 A
i
l
k
i
t
t
c
v
e
y
m
a
r
e
n
g
1
F
P
l
a
r
r
e
r
a
c
e		 B
A
M
L
o		 6
4
5
5
,		 A
1
5
g
u		 0
5
%		 I
l
i
i
t
t
n
r
e
n
e
a
n
e
g
o
a
o
n
s
w
D
l
i
P
k
T
2
a
r
n
g
a
r
o
e
r
w		 P
W
C		 3
9
3
6
6
,		 D
1
5
e
c-		 1.
3
%		 I
l
i
i
t
t
n
r
e
n
e
a
n
e
g
o
a
o
n
s
w

Leading Economic Indicators

  • Key leading indicators point to a potential upturn in economic and employment activity
  • Increase in vacancy rate although sub-lease space availability reduced in Sydney and Melbourne for 2 consecutive quarters

Leading Sentiment and Employment Indicators (Business Confidence & Conditions, Job Ads)

Source: Jones Lang LaSalle, The Conference Board, NAB, ANZ, GPT Research

Growth through development and acquisitions

  1. Less acquisitions made during the period

  2. Assumes no growth in existing asset base from prior year and no acquisitions.

Prime eastern seaboard locations

BRISBANE3 assets

  • Adjacent to airport and Brisbane port
  • Major arterials and national M1 highway

MELBOURNE4 assets

  • Intermodal hub (train, road)
  • Proximity to city centre and ring road

Investment properties Development / land 2013 acquisitions

SYDNEY23 assets

  • Access to M1, M4 and Hume Motorways
  • Major logistics hubs of Homebush and Erskine Park
  • Proximity to major transport routes

Note: Diagrams for illustrative purposes only

Further expansion through development

\$377 million committed development pipeline to increase portfolio WALE to 8+ years

D
l
t
e
e
o
p
m
e
n
s
v		 D
l
t
e
e
o
p
m
e
n
v
C
t
o
s		 A
v
e
r
a
g
e
W
A
L
E		 T
t
a
r
g
e
i
Y
l
d
e		 C
l
i
t
o
m
p
e
o
n
T
l
l
N
Q
X
K
h
Q
l
d
t
o
a
r
a
w
a
a
,
,		 \$
8
4
6
m		 1
5
e
a
r
s
y		 6
%
7		 1
H
2
0
1
4
T
N
T
E
k
i
P
k
N
S
W
s
r
n
e
a
r
,
,		 \$
6
0
0
m		 1
5
y
e
a
r
s		 7
7
%		 H
1
2
0
1
5
S
R
A
N
D
E
k
i
P
k
N
W
s
r
n
e
a
r
,
,		 \$
6
0
0
m		 2
0
y
e
a
r
s		 8
7
%		 H
1
2
0
1
5
S
R
R
M
E
k
i
P
k
N
W
s
r
n
e
a
r
,
,		 \$
9
4
0
m		 2
0
e
a
r
s
y		 8
9
%		 1
H
2
0
1
5
C
S
C
I
M
D
V
I
t
o
m
e
r
o
n
,
,		 \$
8
1
m		 1
2
e
a
r
s
y		 0
%
7		 2
H
2
0
1
4
M
R
A
S
O
P
N
S
W
3
u
r
r
a
y
o
s
e
v
e
n
u
e
,
,		 \$
7
0
0
m		 /
n
a		 8
0
%		 H
1
2
0
1
5
C
i
i
i
d
D
l
P
l
t
t
t
o
m
m
e
e
v
e
o
p
m
e
n
p
e
n
e		 \$
3
7
7
m		 1
7
y
e
a
r
s		 8
2
%

LOGISTICS\$300m Erskine Park Estate 89% complete or underway

Development asset Existing asset Vacant land bank

TNT

31,902 sqm logistics facility Development cost: \$60m Completion: 1H 2015

GOODMAN FIELDER

WALE: 15.5 years

RRM

20,571 sqm cold storage facility Development cost: \$94m Completion: 1H 2015

RAND

23,757 sqm cold storage facility Development cost: \$60m Completion: 1H 2015

TARGETWALE: 8.1 years

LOGISTICSSydney Olympic Park development

6-8 Herb Elliot Avenue

Murray Rose Avenue

SOP TOWN CENTRE SITE

5.2 hectaresRunning yield: 8.5% FSR 3.2:1Potential mixed use opportunity

4 MURRAY ROSE AVENUE

15,000 sqm campus office building Development cost: \$85m In planning

3 MURRAY ROSE AVENUE

12,950 sqm campus office building Development cost: \$70m Completion: Mid 2015

Top performing core wholesale funds in retail and office

a2013 Highlights

  • \$7.1 billion of funds under management
  • GWOF and GWSCF the top performing wholesale core funds in their sector
  • 7.5% growth in FUM delivered through a combination of acquisitions and developments
  • Completion of \$569 million capital raising for GWSCF ahead of target
  • Internalisation of GWOF property management completed

GPT Total Return from Funds Management 12 Months Ended 31 December 2013

GPT Wholesale Office Fund performs strongly

  • 1 performing wholesale core office fund over 1, 3 and 5 years

  • 10% total return delivered in 2013
  • Acquisition of 8 Exhibition Street
  • Development at Liberty Place completed delivering significant valuation uplift
  • Low gearing of 11.7% supports fund growth

GPT Wholesale Shopping Centre Fund continues to perform well

  • 1 performing wholesale core retail fund over 1 year delivering 9.6% Total Return

  • Development at Highpoint completed delivering significant valuation uplift
  • \$569 million capital raising completed oversubscribed
  • Sale of Carlingford Court completed for \$177 million
  • Low gearing of 10.7% supports fund growth

GWSCF Total Return Performance Against Peers

More from GPT GROUP

Earnings Release 2026
May 5
Director's Dealing 2026
Apr 20
Share Issue/Capital Change 2026
Apr 20
Director's Dealing 2026
Apr 16
Capital/Financing Update 2026
Apr 15
Declaration of Voting Results & Voting Rights Announcements 2026
Apr 9
AGM Information 2026
Apr 9
Regulatory Filings 2026
Apr 1
Director's Dealing 2026
Mar 31
Share Issue/Capital Change 2026
Mar 31
View all filings →