GPT GROUP — Annual Report 2014

Feb 22, 2015

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GPT 23 February 2015 ANNUAL RESULT

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2014 ANNUAL RESULT HIGHLIGHTS

Delivering on strategy with a disciplined, consistent and transparent approach

 Delivering consistent results from core business

• 4.1% EPS[1] growth

• 9.6% Total Return

• Disciplined capital allocation and capital management

• $2 billion of transactions

• 26.3% gearing

 Proven Funds Management and Development capabilities

• $1.4 billion of Funds Management capital raised on the back of leading performance

• − $75 million of Development value created

• Simple, straight forward business providing certainty of future earnings

• 9% Total Return target

• 5% EPS[1] growth guidance

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1. Defined as Funds From Operations per security growth.

OUR OUTLOOK

Strong performance in a subdued environment

• Fundamentals remain mixed

• Business confidence and consumer sentiment remain subdued though helped by the recent

• ECONOMY interest rate cut and fuel costs

• Improvement in the contribution of the non-mining sectors over the second half of 2014  New South Wales and Victoria have continued a positive growth trend  For GPT, retail conditions have improved over the last twelve months, aided by house price

• GPT CORE growth and the quality of the portfolio MARKETS  Divergence in office market performance to continue. Demand led by finance, property & business services, and technology companies

• High demand for yield continues to drive logistics returns

 EPS[1] growth of 5% 2015  GUIDANCE & Distribution payout ratio: 100% of AFFO TARGETS  Total Return > 9%

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1. Defined as Funds From Operations per security growth.

2014 ANNUAL RESULT SUMMARY

Financial summary

14 ANNUAL RESULT SUMMARY ancial summary
12 months to 31 December ($m)	2014	2013	Change(%)
Net Profit After Tax 645.3 571.5			 12.9
Less: Valuation increases (249.5) (92.2) Add: Treasury items marked to market 89.1 (20.3) Less: Distribution on exchangeable securities (25.0) (25.0) Less: Other1 (7.8) 13.7 Funds From Operations (FFO) 452.1 447.7 Less: Maintenance capex and lease incentives (95.1) (91.0) Adjusted Funds From Operations (AFFO) 357.0 356.7 Weighted average securities on issue (million) 1,685.5 1,738.0
Funds from Operations per stapled security (cents) 26.81 25.76			 4.1
Distribution per stapled security (cents) 21.2 20.4			 3.9

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1. Other includes amortisation expense, profit/(loss) on sale and the tax impact.

2014 ANNUAL RESULT HIGHLIGHTS

Increasing profitability from Development and Funds Management

12 months to 31 December ($m)	2014	2013	Change($m)	Change($m)
Retail NOI	248.7	264.3		15.6	Asset divestments
Office NOI	141.8	144.1		2.3	Higher average vacancy
Logistics NOI	85.9	76.2		9.7	Acquisitions and development completions
Fund distributions	87.1	74.9		12.2	Increased co-investment
Investment Management expenses	(7.6)	(7.1)		0.5
Investment Management	555.9	552.4		3.5
Asset Management	5.6	5.8		0.2
Development – Retail & Major Projects	1.9	2.8		0.9
Development – Logistics	6.5	(1.8)		8.3	Increased development activity
Funds Management	32.5	21.7		10.8	FUM growth
Net interest expense & exchangeable distribution Corporate overheads & one-off items	(128.5) (30.1)	(120.5) (21.2)1	 	8.0 8.9	MER = 38 bps 30 basis points lower average cost of debt
Tax expenses	(2.8)	(2.7)		0.1
Non-core income	11.1	11.2		0.1
Funds From Operations	452.1	447.7		4.4

1. Reflects adjustment of the FY13 reported item for one-off item as required by FFO methodology.

5

ACTIVE MANAGEMENT

All business areas delivering results

• Focus on management divisions delivering results

• FFO contribution from the management company up 31% on prior year

• Development capability creating significant value

31 December 2014 ($m)	Funds Management1	Logistics Development	RMP Development	Asset Management	Total
Revenue	35.2	20.7	4.5	17.3	77.7
Expenses	(13.0)	(14.2)	(2.6)	(11.7)	(41.5)
Funds From Operations	22.2	6.5	1.9	5.6	36.2
NTA Uplift	-	46.7	27.9	-	74.6
Total Contribution	22.2	53.2	29.8	5.6	110.8

Up 31% Development profit to NTA

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1. Excluding income and expenses attributable to warehoused assets.

CAPITAL MANAGEMENT

Strong capital position

	31 Dec 2014	31 Dec 2013		Change
Net tangible assets per security	$3.94	$3.79		4.0%
Total borrowings	$2,718m	$2,310m		17.7%
Gearing (net debt to total tangible assets)	26.3%	22.3%		400 bps
Look through gearing (net debt to total tangible assets)	28.2%	23.2%		500 bps
Weighted average term to maturity	5.8 years	5.5 years		0.3 years
Interest cover ratio	5.4 x	5.5 x		0.1 x
Weighted average term of interest rate hedging	6.6 years	5.9 years		0.7 years
Average interest rate hedging	75%	74%		1.0%

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CAPITAL MANAGEMENT

Active management creating platform for growth

 Extending maturity and diversifying capital sources

• US$175 million US Private Placement for 15 years issued in the first half at a margin of 144 basis points over BBSW

• $150 million 6 year medium term notes (MTN) at a fixed coupon of 4.5% priced at a margin of 120 basis points over BBSW

 Buyback program

• Buyback active in 1H2014, acquiring 11.4 million securities

• Cumulatively, from 2011 to Dec 2014, GPT has bought back 174 million securities (average price $3.37)

• 2015 Redemption of Exchangeable Securities funded with Equity

• Exchangeable Securities redeemed at an attractive valuation

• Equity raising of $325 million and Security Purchase Plan (SPP) capped at $50 million (at $4.23 per security)

• Transaction is accretive to 2015 FFO per security on an equity funded basis – estimated FFO yield at issue price[1] 6.7% versus 10% coupon on the Exchangeable Securities (7.7% notional on $325 million redemption value)

• Based on $4.23 issue price and estimated FFO yield per security calculated as 2014 FFO per security escalated at 5% for 2015, being the FY15 FFO per security growth guidance announced by GPT.

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INVESTMENT PORTFOLIO OVERVIEW

Quality result and positioned for growth

• Portfolio has undergone significant rebalancing

• $2 billion in transactions in 2014 (>$4 billion since 2012)

• Portfolio remixing delivering results

• Specialty retail sales growth up 4.2%

• GWOF best performing office fund

• Logistics development profit $47 million

• 2015 focus on driving occupancy and converting development opportunities

• Retail – progressing masterplanning in strong catchments

• Office – build on 2014 leasing success to increase occupancy

• Logistics – deliver development pipeline

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TOTAL PORTFOLIO RETURN

Return in excess of target

• Investment portfolio return of 9.3% drives Group Total Return performance of 9.6%

• Weighted average cap rate firmed 23 basis points to 6.27% with logistics leading performance

Total Portfolio Return

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RETAIL PORTFOLIO

2014 Highlights – Portfolio is in great shape with key indicators improving

2.9% like for like income growth

Retail markets

• Retail sales growth above the long term average

• Growth driven by food and retail services

99.5%

occupancy

• Online sales growth moderating

Portfolio commentary

• Delivered a Total Portfolio Return of 9.0%

4.2% specialty sales MAT growth

• Annual specialty sales up 4.2% (compared to 2.9% in 2013)

• Lower occupancy cost at 17.9% and improved productivity at $9,754psm

$115.0m revaluation uplift

• WACR at 5.87% reflects the high quality of the portfolio

Outlook

• Positive sales growth expected to continue, albeit apparel still challenging

5.87% weighted average cap rate

• Dominant regional assets in strong catchments expected to outperform

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RETAIL DEVELOPMENT

$1.3 billion pipeline with mixed use opportunities being pursued to enhance returns

Retail development pipeline

Property	Forecast Cost	Development Opportunity
GPT Assets
Casuarina Square1	$28m	Leisure and entertainment
Melbourne Central	$125m	Rooftop mixed use
Rouse Hill Town Centre	$250m	Retail and mixed use
Highpoint Shopping Centre1	$100m	Second supermarket
Sunshine Plaza	$170m	David Jones expansion
Casuarina Square1	$250m	Myer expansion
GWSCF Assets
Macarthur Square	$85m	Retail expansion
Westfield Woden	$100m	Retail expansion
Chirnside Park	$65m	Additional mini-majors
Parkmore Shopping Centre	$125m	Retail expansion

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Casuarina Square – Student Accommodation

Completed	December 2014
Project Cost	$31 million
Valuation	$38.8 million
Development Profit	25%

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1. Includes GWSCF interest.

OFFICE PORTFOLIO PERFORMANCE

2014 Highlights – Portfolio substantially de-risked and vacancy further reduced

(1.1%)

like for like income growth

Office markets

• Leasing markets remain variable with recovery in demand in Sydney and Melbourne

• Strong demand for high quality assets resulting in cap rate compression

93.9%

occupancy

• National supply below historical averages although high in Perth and Brisbane

Portfolio commentary

167,244 sqm leases signed

• Strong year in leasing substantially de-risking the portfolio

• 3.3% increase in portfolio occupancy led by leasing success at MLC Centre

$58.3m

revaluation uplift

• Total Portfolio Return of 8.6% impacted by 1H14 write downs and acquisition costs

Outlook

6.41%

weighted average cap rate

• Portfolio well positioned with 3.6% expiry in 2015 and 7.7% p.a. average over next 5 years

• Sydney and Melbourne to outperform with superior supply/demand fundamentals

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OFFICE MARKETS

Vacancy exposure well positioned in the current markets

PERTH

• High vacancy 15.8%

• Falling net effective rents -30.7%

ADELAIDE

• High vacancy 15.0%

• Falling net effective rents -11.0%

MELBOURNE

Market

 Vacancy peaking 10.3%  Rising net effective rents 3.3% GPT Portfolio  Occupancy rising 97.3%  Low 2015 expiry 2.2%

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CANBERRA

 High vacancy 15.1%  Falling net effective rents -7.6%

BRISBANE

Market  High vacancy 16.8%  Falling net effective rents -9.9% GPT Portfolio  High occupancy 93.2%  Low 2015 expiry 3.3%

SYDNEY

• Market  Moderate vacancy 9.5%  Rising net effective rents 3.1% GPT Portfolio  Occupancy rising 90.4%  Low 2015 expiry 4.6%

GPT portfolio exposure

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Source: Market data JLL Q4.

LOGISTICS PORTFOLIO PERFORMANCE

2014 Highlights – Acquisitions and developments driving returns

(0.5%) like for like income growth

Industrial markets

• Strong investment demand driving cap rate compression

• Patchy leasing demand with most activity from transport and storage

95.3% occupancy

• Vacancy increases in main east coast markets with greater supply in 2014

Portfolio commentary

• Active growth strategy major contributor to 12.7% Total Portfolio Return

$285m development underway

• Strong development returns contributing $47 million to Group

• Actively managing portfolio

• Investing for future growth – recycling capital into land bank

$80.2m revaluation uplift

• Developments improving quality and WALE

• Enhancing existing assets to drive value

Outlook

7.72%

weighted average cap rate

• Investment demand to continue pressure on values

• Portfolio to benefit from inclusion of development product

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LOGISTICS PORTFOLIO

Strategically recycling capital to enhance portfolio

$80m Development Profits/Revaluations

$47m in development profits $33m in investment portfolio revaluations $181m in development completions (Toll NQX, TNT)

Land Acquisitions

$44m replenishing land banks (Wacol, Brisbane) $101m in total land bank $440m on completion value

$228m in WIP Erskine Park projects 3 Murray Rose

$184m Disposals Sydney Olympic Park (to GMF) Sunshine West

2014 Logistics Portfolio Growth

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$208m ($184m) $44m $1,350m
$30m
$80m
$1,172m
December 2013 Total Capex Divestments Total Revaluations GMF Equity Acquisitions December 2014
Interest
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2015 PORTFOLIO PRIORITIES

Value creation through development and leasing

RETAIL	 Casuarina Square – commence construction of new leisure and entertainment precinct  Rouse Hill Town Centre – convert expansion opportunity  Charlestown Square – secure international retailers  Melbourne Central – convert roof top mixed use opportunity
OFFICE	 MLC Centre – stage 1 completion, stage 2 DA  Occupancy – increase occupancy and focus on maximising rents  Asset specific leasing – focus on 1 Farrer Place and MLC Centre
LOGISTICS	 Development pipeline – delivery of committed projects at Erskine Park  Higher and better use strategies – Rosehill and Sydney Olympic Park  Leasing – focus on Melbourne vacancy  Opportunistic non-core asset sales – recycling capital into development pipeline

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FUNDS MANAGEMENT

Strong performance and quality drives capital inflows

FUM Historical Growth

• Successfully raised $1.4 billion of new capital across the Office and Shopping Centre funds, inclusive of DRP

• Listing of the GPT Metro Office Fund

• $255 million of equity raised

• Largest AREIT IPO in 2014

16% per annum growth since 2010

$9.6b

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$7.1b
$6.6b
$5.3b $5.6b
Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014
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• GWOF remains top performing core wholesale office fund[1 ]

GPT Total Return from Funds Management

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1.7% 11.8%
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• Continuing to review new sectors

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3.8%
6.3%
Distribution Capital Growth FM Business Total Return
Yield Contribution
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1. Based on the Mercer/IPD All Office Index.

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GPT Appendices ANNUAL RESULT

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RETAIL

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RETAIL

Key performance indicators have improved

• Strong specialty sales productivity

• High occupancy at 99.5% representing 36 vacancies  Specialty occupancy cost has improved  Leasing spreads of -4.2% representing $1.4m p.a. of income

• Holdovers represent 110 shops, down from 3.0% in 2013  Retention level of 61% on 2014 expiries

	12 months to 31 December	2014	2013
	Specialty MAT sales psm1	$9,754	$9,285
	Specialty Occupancy Cost1	17.9%	18.3%
	Occupancy	99.5%	99.6%
	Critical retailers2	34	40
	Holdovers3	2.8%	3.0%
	Arrears: % annual billings	0.4%	0.5%
	Annual centre traffic growth1	4.3%	(0.1%)

1. Based on GPT weighted interest. 2013 metrics have been weighted for comparison. Growth is for the 12 months compared to the prior corresponding 12 month period. Excludes development impacted centres.

2. Defined as retailers classified as Category 5 in GPT’s Critical Retailer Barometer.

3. Represents percentage of portfolio base rent.

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RETAIL Specialty sales up 4.2% in 2014

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Monthly Specialty Sales Growth [1 ] Moving Annual Change in Retail Sales by Category [1,2 ]
26.2%
7.3%
5.8%
12.1%
5.0% 5.0% 5.1%
4.8%
4.5% 3.9% 5.9% 4.2% 7.5% 6.8% 5.4% 4.7%
3.7% 2.5% 1.8% 1.5%
3.1% 3.2% 0.3% [2.0% ]
(0.2%) (0.1%)
(2.7%)
(0.1%)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Specialties breakdown
Total Centre Department Store Discount Department Store Supermarket Mini Majors Other Retail Total Specialties Mobile Phones Retail Services Food Retail General Retail Food Catering Leisure Homewares Jewellery Apparel
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1. Based on GPT weighted interest. Excludes development impacted assets (Highpoint, Wollongong and Dandenong). Monthly chart includes Highpoint from June 2014 and Northland from October 2014.

2. Wesfarmers and Woolworths have reported one less week of turnover compared to the comparable period last year.

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RETAIL

Investing in the right centres and catchments is driving stronger sales growth

Asset contribution to specialty MAT sales growth of 4.2%[1 ]

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40%
30% Rouse Hill
Charlestown 28%
25%
20% Melbourne Penrith
Central 19%
18%
10% Northland Macarthur
Parkmore 3%
Chirnside 2% Norton Plaza
Forestway Casuarina 1% 1% 1%
0%
0% Sunshine 2%
0%
Woden
-1%
-10%
-4% -2% 0% 2% 4% 6% 8% 10%
Contribution to portfolio specialty growth
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Specialty MAT Growth

Size of bubble indicates asset weighted proportion of total portfolio specialty sales

GPT assets GWSCF assets

1. Based on GPT weighted interest. Excludes development impacted assets (Highpoint, Wollongong and Dandenong).

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RETAIL

Retail trade indicators stron g

Retail Trade Growth (by state)

• Growth in share market and housing market has supported consumer spending

• Retail trade growth above the long term average in 2014, with key states NSW and Victoria outperforming.

• In contrast, online sales growth has softened in line with a weakening dollar

Components of Consumer Wealth

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S&P/ASX200 Accumulation Index Growth Residential Property Price Index Growth
50%
40%
30%
9.1%
20%
10%
0%
-10% 5.6%
-20%
-30%
-40%
Annual growth (Q/Q)
Dec 04 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14
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NSW VIC QLD
14% SA WA Total
12%
10%
8%
6%
4%
2%
0%
-2%
Source: ABS Retail Trade (Trend), December 2014.
Online Retail Sales Growth versus AUD/USD
30% AUD/USD (RHS) Online Sales Growth (LHS) $1.20
25% $1.10
20%
$1.00
15% 8.9%
$0.90
10%
5% $0.80
$0.78
0% $0.70
Annual Growth (m/m)
Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14
Annual Growth (M/M)
Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jul 13 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 15
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Source: ABS 1350.0, December 2014; ABS 6416, November 2014.

Source: NAB/Quantium, December 2014; RBA, January 2015.

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OFFICE

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OFFICE

Tenant demand improving throughout 2014

• Material improvement in inspections, proposals and deals executed over 2014. Approximately 60% of inspections were in 2H 2014

• Demand led by small Finance & Business Services. Highest demand for 250-750sqm tenants (38% of all inspections)

• Impact of contraction of larger firms declining

Number of Inspections by Size Range per Month

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80
60
40
20
0
Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14
1,501sqm+ 751 - 1,500sqm 251 - 750sqm <250sqm
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E.W.G, Government
Resources, 2%
Construction
5%
Finance &
Other 12% Insurance
29%
2014
IT & Media GPT Inspections
13% by Industry Type
Real Estate Business
Services Services
15% 23%
Number of Inspections by Size
300
252
250 226
200
150 114
100
64
50
0
<250sqm 251 - 750sqm 751 - 1,500sqm 1,501sqm+
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OFFICE

Sydney leading activity

Leasing Enquiry versus Net Absorption Sydney and Melbourne CBD

Demand versus Supply Sydney and Melbourne CBD Office

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120,000 150,000 6%
80,000 Leasing Enquiry 100,000 5% Net Absorption Net Supply
(LHS)
40,000 50,000 4%
- - 3% 2.7%
Net 2%
-40,000 -50,000
Absorption 0.8%
-80,000 (RHS) -100,000 1% 12
0% %
-120,000 -150,000 2013 2014 2015(f) 2013 2014 2015 (f)
Syd Melb
Source: Colliers Edge, GPT Research
Face versus Effective Rental Growth GPT Lease Expiry Profile
Eastern Seaboard CBD Office Sydney and Melbourne
5% 3.6% 4.1% Sydney Melbourne Average
3.1% 3.3%
0%
15% 13.6%
-5% 11.3% 11.3%
-10%
10% Average 8.1% 8.0% 8.2% 7.9% 8.3%
-15%
5.5%
5% 4.6%
2.2%
Syd Melb
0%
Gross Face Rent Net Effect. Rent 2015 2016 2017 2018 2019
sqm. per month
% of Total Stock
sqm. per annum
Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14
% growth YoY
2012 2013 2014 2012 2013 2014
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Market data: JLL Q4

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OFFICE Resource based states lagging

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Leasing Enquiry versus Net Absorption
Brisbane CBD
30,000 90,000
20,000
Leasing Enquiry
40,000
(LHS)
10,000
- -10,000
-10,000 Net
Absorption -60,000
-20,000 (RHS)
-30,000 -110,000
Face versus Effective Rental Growth
Brisbane and Perth CBD Office
30%
20%
10%
-1.5% 0.8%
0%
-10% -9.9% -15.2%
-20%
Bris Perth
Gross Face Rent Net Effect. Rent
sqm. per month sqm. per annum
Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14
% growth YoY
2012 2013 2014 2012 2013 2014
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Demand versus Supply
Brisbane and Perth CBD Office
12%
9.6%
10% Net Absorption Net Supply
8%
6%
4%
2% 0.4%
0%
-2%
-4%
-6%
2013 2014 2015(f) 2013 2014 2015(f)
Bris Perth
% of Total Stock
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Source: Colliers Edge, GPT Research

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GPT Lease Expiry Profile
Brisbane
Balance Sheet & GWOF
10% 9.2%
Balance Sheet 8.4%
8% Average
6% Average 5.6% 5.4% 5.5%
4% 3.3%
1.6%
2%
0.6%
0.0% 0.0% 0.0%
0%
2015 2016 2017 2018 2019 29
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Market data: JLL Q4

OFFICE

Leasing activity resulting in limited near term vacancies

93.2% occupied 2,470 sqm vacant1 90.4% occupied 37,900 sqm vacant1 97.3% occupied 3,895 sqm vacant1	Owner Tenant Area (sqm) % of Portfolio Expiry Progress
	Brisbane
	Brisbane Transit Centre GWOF Brisbane City Council 4,200 0.1% Jun 15 Vacating
	545 Queen Street GWOF Flight Centre 8,100 0.5% Jan 17 Vacating
	Sydney
	MLC Centre GPT NSW Government 5,000 0.8% Mar 16 In discussions
	2 Park Street GPT Gilbert + Tobin 9,280 1.9% Jun 16 Vacating
	Darling Park 3 GWOF Marsh Mercer 17,800 1.2% Nov 16 Likely to vacate
	Melbourne
	Melbourne Central GPT CSA 5,870 1.3% May 16 In discussions
	8 Exhibition Street GWOF AECOM 4,850 0.1% Jun 16 In discussions
	530 Collins Street GWOF Bank of Melbourne 7,000 0.3% Dec 16 Likely to vacate

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1. GPT balance sheet portfolio.

OFFICE Progressing MLC Centre repositioning

 Redevelopment Progressing

• Foodcourt works due to complete mid 2015

• End Of Trip facilities under construction

• Tower floor works complete

• DA lodged for stage 2 redevelopment

• Facade works progressing well

 Successful Leasing

• 23,000 sqm of leasing completed in 2014

• − Occupancy increased from 64% to 85%[1 ]

• 64% of former Freehills space leased

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1. Includes signed leases and Heads of Agreement.

OFFICE

Allocating capital in a disciplined way

• Office platform acquired five assets ($1.2 billion) in 2014 and completed one development at 150 Collins Street

• CBW acquisition an example of utilising platform to acquire large scale assets and enhancing returns

• Recycling capital to enhance quality and returns of portfolio with CBW acquisition and 818 Bourke Street sale

Corner Bourke & William Streets

818 Bourke Street

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	Acquisition CBW1	Divestment 818 Bourke Street
Total NLA	81,400 sqm	23,300 sqm
Sale Price	$608.1m	$152.5m
Market Yield	6.50%	7.20%
IRR	8.50%	8.00%
Occupancy	100%	100%
WALE1	5.2 years	4.0 years

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1. As at acquisition.

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LOGISTICS

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LOGISTICS PORTFOLIO

Benefitting from recent growth strategy

Total Portfolio Return 12.7% $80m value creation

Investment

Recent acquisitions driving outperformance Cap rate compression from 8.33% to 7.72% Portfolio quality improving with inclusion of new assets WALE increased to 6.2 years Active management across portfolio

Development

Delivering on activation of existing land banks Completed $181m of new product Development profit $46.7m Replenishing land banks (Wacol, Brisbane) $44m $101m invested in land bank $440m future pipeline

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Toll NQX, Karawatha, QLD

TNT Express, Erskine Park, NSW

RAND and RRM, Erskine Park, NSW

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LOGISTICS

Strong focus on key areas of business

ENHANCEMENTS

Adding value to existing assets within the portfolio

DEVELOPMENTS

Adding scale to the portfolio with experienced development team

ACTIVE

Maximising value at right point in the cycle Acquiring in the right market at the right time Selling to maximise value

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Sydney Olympic Park Town Centre, NSW

Metroplex, Wacol, QLD

5 Murray Rose, Sydney Olympic Park, NSW

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LOGISTICS

Opportunities in portfolio to create value

ENHANCEMENTS

DEVELOPMENTS

ACTIVE

• Adding value to existing assets within the portfolio

• A number of opportunities to enhance value in the portfolio

• Urban renewal opportunities with >$2 billion in gross realisation

• Sydney Olympic Park: 5 hectares in prime location, greater than 170,000 sqm of mixed used opportunities

• Rosehill – 8 hectares of land, potential urban renewal

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LOGISTICS

Flexible approach to development

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ENHANCEMENTS DEVELOPMENTS ACTIVE
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Develop for Balance Sheet Develop for GPT Funds Develop and Sell
Rand, Erskine Park 3 Murray Rose Chullora Joint Venture
RRM, Erskine Park
TNT, Erskine Park
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• 2014 completion of Toll NQX Karawatha, TNT Erskine Park, IMCD Somerton to balance

• $181 million sheet and the joint venture at Chullora sold to third parties

• Projects to be completed in 2015 includes Rand and RRM at Erskine Park for balance

• $285 million sheet and 3 Murray Rose, Sydney Olympic Park for GPT Metro Office Fund

• $440 million Future development pipeline – Metroplex, Somerton and Sydney Olympic Park

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LOGISTICS

Disciplined management strategy

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ENHANCEMENTS
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DEVELOPMENTS ACTIVE
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• $351 million in acquisitions since 2012 – well timed in the cycle and now benefitting from yield compression

• Recycling capital into land bank

• Opportunity for more non-core asset sales

Logistics Portfolio Growth

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$351m $44m [1 ] ($201m) $72m $1,350m [1 ]
$252m
$832m
December 2011 Capex Investment Land Acquisitions Divestments Revals & Other December 2014
Acquisitions
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1. Includes current land value of Metroplex, Wacol.

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FUNDS MANAGEMENT

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FUNDS MANAGEMENT

35% growth with strong performance

• $2.5 billion growth in funds under management

• $2.1 billion in existing wholesale funds

  • GWOF acquired four Melbourne CBD assets

  • GWSCF acquired interests in Northland and Highpoint

• $0.4 billion in GMF – largest AREIT IPO in 2014

• $1.4 billion of new equity raised

• $617 million in GWOF (unlisted raising and DRP)

  • Raising at 1.0% premium to CUV

Growth in Funds under Management

$9.6b

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$0.4b
$7.1b
$6.6b
$3.8b
$5.6b
$5.3b
$3.0b
$3.0b
$2.1b $2.2b
$5.4b
$3.2b $3.3b $3.7b $4.1b
Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014
GWOF GWSCF GMF
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• $504 million in GWSCF (unlisted raising and DRP)

  • Raising at 1.9% premium to CUV

• $255 million in GMF (IPO)

• 11.8% total return from the Funds Management business on GPT’s co-investments of $1.5 billion

		New Equity	Raised	in 2014
		GWOF	GWSCF	GMF	Total
	DRP	$167m	$82m	-	$249m
	New Equity	$450m	$422m	$255m	$1,127m
	Total	$617m	$504m	$255m	$1,376m

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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 2014 unless otherwise indicated.

All values are expressed in Australian currency unless otherwise indicated.

FFO is reported in the Segment Note disclosures which are included in the financial report of The GPT Group for the 12 months ended 31 December 2014.

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 FFO to Statutory Profit is useful as FFO is the measure of how GPT’s profitability is assessed.

FFO is a financial measure that represents GPT’s underlying and recurring earnings from its operations. This is determined by adjusting statutory net profit after tax under Australian Accounting Standards for certain items which are non-cash, unrealised or capital in nature. FFO has been determined based on guidelines established by the Property Council of Australia and is intended as a measure reflecting the underlying performance of the Group.

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