GPT GROUP - Annual Report 2019 | FinancialReports.eu

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27 March 2020

2019 Annual Review

GPT provides its 2019 Annual Review which is authorised for release by the GPT Group Board.

-ENDS-

For more information, please contact:

For more information, please contact:
INVESTORS	MEDIA
Brett Ward	Grant Taylor
Head of Investor Relations & Corporate	Communications Manager
Affairs
+61 437 994 451	+61 403 772 123

www.gpt.com.au

Level 51, MLC Centre, 19-29 Martin Place, Sydney NSW 2000

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2019 Annual 2018 Review INTERIM ~~RESULT~~ PROPERTY COMPENDIUM

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About this report

GPT’s Annual Review includes financial summaries derived from the 2019 Annual Financial Report and 2019 Annual Result announcement, which were released on Monday, 10 February 2020. The GPT 2019 Annual Financial Report is available on GPT’s website, www.gpt.com.au or on request from the GPT Securityholder Centre on 1800 025 095 (freecall within Australia).

GPT has engaged Ernst & Young to undertake limited assurance procedures over a number of non-financial key performance indicators that the company deems material to its operations. Ernst & Young’s assurance statement is available on GPT’s website at www.gpt.com.au.

AGM information

GPT’s Annual General Meeting (AGM) will be held at GPT’s Head Office, Level 51 MLC Centre 19 Martin Place, Sydney New South Wales (or such other venue as advised to securityholders if this venue is no longer available) on Wednesday, 13 May 2020, commencing at 10.00am (Sydney time). Securityholders may also participate in the Meeting online. Given the current situation, we strongly encourage all securityholders to vote by proxy or to participate and vote using our online platform rather than attending in person. Additionally, the Chairman’s address will be immediately announced to the ASX on the day.

Investor calendar

13 May 2020	Annual General Meeting
June 2020	June 2020 Half Year Distribution Announcement
10 August 2020	2020 Interim Result Announcement
August 2020	June 2020 Half Year Distribution Payment

An investor calendar is also available on GPT’s website at www.gpt.com.au/investor-centre/key-dates-events.

ntents
The GPT Group	2
Our Strategic Focus	4
Letter to Securityholders	6
Financial Performance	10
Operational Performance	12
Sustainability	20
People & Community	23
Board of Directors	26
Leadership Team	28
Remuneration Report	30
Financial Summary	34
Securityholder Information	36
Corporate Directory	37

Note: All information included in this report includes GPT owned assets and GPT’s interest in the Wholesale Funds (GWOF and GWSCF) unless otherwise stated.

8 Exhibition Street, Melbourne

The GPT Group

GPT is an owner and manager of a $14.85 billion diversified portfolio of high quality Australian retail, office and logistics property assets and together with GPT’s funds management platform the Group has $25.3 billion of property assets under management (AUM).

GPT owns some of Australia’s most prominent real estate assets, including Melbourne Central and Highpoint Shopping Centre in Melbourne, Australia Square, Governor Phillip Tower & Governor Macquarie Tower, Darling Park and 2 Park Street in Sydney and One One One Eagle Street in Brisbane.

Listed on the Australian Securities Exchange (ASX) since 1971, GPT is today one of Australia’s largest diversified listed property groups with a market capitalisation of approximately $10.9 billion. GPT is one of the top 50 listed stocks on the ASX by market capitalisation as at 31 December 2019.

Our vision is to be the most respected property company in Australia, making astute capital allocation decisions, delivering best in class performance from our assets and capitalising on opportunities we create.

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Office Portfolio

24 assets 1,080,000 sqm NLA 470+ tenants $6.1bn portfolio

$13.1bn assets under management

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Logistics Portfolio

35 assets

1,010,000 sqm GLA 80+ tenants $2.4bn portfolio

$2.4bn assets under management

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Retail Portfolio

12 shopping centres 960,000 sqm GLA 3,200+ tenants

$6.3bn portfolio $9.8bn assets under management

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Retail
Office
Logistics
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Darwin 1
NT
QLD
WA
1 2 3 Brisbane
SA
NSW
5 11 25
Sydney
VIC
5 11 7
Melbourne
TAS
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Grow our Office and Logistics portfolio
Retain a high weighting to NSW and VIC markets
Increase the development pipeline to an expected end value of approximately $5 billion[1]

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Shifting our strategic asset allocation
TARGET 2019
Office Office
40% 41%
Logistics Logistics
20% 16%
40% 43%
Retail Retail
1. Includes both GPT direct interest and Fund opportunities.
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Delivering
attractive 5 YEAR AVERAGE TOTAL RETURN
13.3%
returns
5 YEAR AVERAGE
FFO PER SECURITY GROWTH
4.0%
5 YEAR AVERAGE
DPS GROWTH
4.5%
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FOCUS GROUP
Sydney & Earnings
Melbourne Composition
NSW
Logistics
Office
52% 16%
VIC 36%
36%
Funds 42%
Retail
10% Management
NT
2%
QLD 6%
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21 Shiny Drive, Truganina

We commenced 2019 with a clear strategy to grow our investment in the Logistics sector whilst continuing to deliver strong performance from our diversified portfolio and ensuring the business is well positioned for the future. 2019 has been an exceptional year for the Group with the Logistics portfolio growing by 29 per cent, the successful completion of a $867 million equity raising and growth of the development pipeline to approximately $5 billion. The engaged and motivated team at GPT were instrumental in the successful achievement of our objectives and the quality performance of our portfolio.

2019 Annual Result

The Group delivered strong financial results for the year. Net Profit after Tax for the year was $880 million and Funds from Operations (FFO) was $613.7 million, representing FFO growth of 2.6 per cent per security on the prior period. The value of our real estate portfolio increased again this year with a valuation gain of $342.2 million, primarily driven by our Office and Logistics assets, reflecting the strong investment demand and rental growth being achieved. Net Tangible Assets per security increased 3.9 per cent to $5.80 and the Group’s Total Return for the year was a healthy 8.7 per cent.

The Office portfolio delivered outstanding results in 2019, achieving 6.2 per cent comparable income growth for the

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Vickki McFadden Bob Johnston
CHAIRMAN CEO & MANAGING DIRECTOR
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period, and a Total Return of 10.0 per cent. Occupancy increased to 98.3 per cent with 148,000 square metres of leases signed in the period, and the Weighted Average Lease Expiry (WALE) of the portfolio increased to 5.3 years. Total Office Assets Under Management increased to $13.1 billion. The Group’s 50 per cent stake in the MLC Centre was divested for $800 million during the period, which resulted in a return of 20 per cent per annum from the asset over the past three years. This was subsequently followed by the acquisition of a 25 per cent interest in Darling Park 1 & 2 and Cockle Bay Wharf for $531 million. Our ongoing focus on our customer resulted in the Group maintaining its market leading customer satisfaction score and more than 70 per cent of leases signed in the period consisted of renewals and expansions by existing tenants. These results reflect the quality of our assets, the leasing progress made by our team and the favourable market conditions in Sydney and Melbourne.

In Logistics, the Group continues to deliver growth through both development and investment acquisitions. Operations net income increased by 15.4 per cent, and the Total Return for the Logistics portfolio was 12.1 per cent. Strong leasing outcomes were achieved, with 231,600 square metres of leases signed. Portfolio occupancy has remained high at 95.7 per cent, including terms agreed. The Logistics portfolio

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increased in value by $545 million in the 12 months, and is now valued at $2.4 billion. This growth was achieved through the acquisition of investment assets and land, development completions and valuation increases. The two new developments, located in Eastern Creek in Sydney and Truganina in Melbourne, completed during the year are now fully leased. A further four facilities are currently under development with completion expected during 2020.

The Group’s Retail portfolio continued to deliver solid results for the period despite weak consumer sentiment prevailing for most of the year. Specialty sales productivity increased to $11,667 per square metre, making GPT’s portfolio one of the most productive amongst its peers. The Retail portfolio recorded a modest reduction in valuation during the year reflecting cautious investor sentiment and lower future rental growth assumptions. Pleasingly, occupancy for the Retail portfolio was above 99 per cent and while tenant retention remained high at 75 per cent, over 70 new retailers were introduced to our assets during the year. Personalisation, experience and convenience continue to be thematics that influence how we position our assets to respond to the changing demands of our customers.

Development of new high quality product to complement our existing portfolio remains a focus for the Group. At 32 Smith Street, Parramatta, construction is progressing well on a new 26,400 square metre office tower, with completion forecast for December 2020. The landmark tower is now 64 per cent committed or at terms agreed, and has an expected end value in excess of $320 million on completion. The acquisition of Darling Park 1 & 2 and Cockle Bay Wharf in Sydney provides the Group with access to an exciting future development opportunity of a 73,000 square metre office and entertainment complex. An International Design Competition was held late in 2019 and this project will now progress to the final planning phase, with commencement targeted for 2022. In Melbourne, we have advanced plans for a $260 million development on Lonsdale Street above Melbourne Central. The development comprises a 20,000

square metre office building with strong sustainability credentials, and 7,000 square metres of retail with a focus on dining and entertainment. The project will reinforce Melbourne Central’s strong retail market position and provide the Group with a new, well located prime office asset. Similarly, we continue to progress plans for a $200 million expansion of the Rouse Hill Town Centre, introducing a further 20,000 square metres of retail and commercial space and 150 residential apartments transforming the centre into a world class mixed use asset. In Logistics, the development pipeline has grown with a number of land holdings secured. This provides the Group with the opportunity to deliver over 550,000 square metres of prime logistics facilities in the coming years with an expected end value on completion of more than $1 billion.

GPT’s Funds Management business provides access to third party capital and continues to deliver growth for the Group. During the period, assets under management grew by 5.6 per cent to $13.3 billion. The GPT Wholesale Office Fund (GWOF) grew by $1 billion over the year following the acquisition of 2 Southbank Boulevard in Melbourne, coupled with strong valuation gains, and the Fund has a $2 billion pipeline of future development opportunities that will underpin the future growth of our management platform.

Corporate Governance & Board Renewal

The Board regards strong corporate governance as a fundamental component of our commitment to securityholders, customers, people and communities in which GPT operates. GPT’s Board strives to ensure that it meets high standards of governance across all aspects of its operations.

The Board takes a proactive and thoughtful approach to succession, and an essential part of our governance framework. We also strive to ensure the Board members hold the right balance and diversity of skills, perspective and experience to enhance the long term performance of

Melbourne Central, Melbourne

GPT. In April 2019, GPT appointed Tracey Horton AO as a Non-Executive Director and she was subsequently formally elected to the Board at the AGM in May. Tracey has significant strategy, governance, risk management and remuneration experience from a range of listed, government and not-forprofit boards and we know her perspectives will greatly benefit the Group and its stakeholders. In December, Lim Swe Guan announced his retirement from the Board, and we would like to take this opportunity to thank Swe Guan for his hard work and wish him well in his future endeavours. More recently, we announced the appointment of Mark Menhinnitt as a Non-Executive Director. Mark brings a wealth of investment management, construction, development and urban regeneration experience in the real estate and infrastructure sectors, drawn from his 30 year career at Lendlease. Mark will stand for election at this year’s AGM.

As a market leading owner and manager of a $25 billion portfolio of office, logistics and retail properties across Australia, we recognise the importance of transparently identifying and managing the foreseeable climate change risks and opportunities. In keeping with our strong track record in disclosure and our long history of leadership in sustainability, GPT released its inaugural Climate Disclosure Report in February 2020. The report outlines the steps we are taking to identify, assess and manage climate change risks and opportunities, and is aligned to the recommendations of the Taskforce on Climate Related Financial Disclosures. We commend this report to you, a copy of which is available on our website.

You can find more on our achievements in environmental and social sustainability later in this report.

Climate Change & Sustainability

In 2017, we announced our target of making GPT’s portfolio carbon neutral by 2030. A key element in this plan is to achieve a carbon neutral position for all assets owned by GWOF by the end of 2020. In late 2019 we announced that two GWOF assets achieved Carbon Neutral Building Certification and were also the first buildings in Australia to certify with both NABERS and Climate Active in alignment with the international Greenhouse Gas Protocols. These outcomes and our ongoing work mean we are on track to achieve our target for all GWOF assets to be certified carbon neutral this year.

In 2019 GPT maintained a leadership position in the property industry for delivering sustainable business outcomes, ranking third globally in the DJSI and achieving a GRESB survey outcome that places us in the top 20 per cent of respondents.

Safety at GPT

Safety is a core value and priority at GPT, with the Board and Leadership Team taking an active role in promoting safety as an integral element of our culture. With millions of people visiting GPT’s assets each year, the safety of our people, our customers and the community is front and centre for management. During 2019, the Group commenced several streams of work in regard to safety initiatives, focusing on safety leadership, culture and systems improvements. In September 2019, GPT held a Safety Leadership conference, comprised of 120 senior managers and employees from across the business. The aim of the conference was to continue the journey to elevate GPT’s safety culture to a leadership position, acknowledging that all members of the GPT team have a part to play in ensuring that our employees and the people who visit our assets go home safely whether they be our customers, contractors or the broader community.

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Diversity & Inclusion

GPT is proud to have a culture of inclusiveness, equality and diversity. Our positive culture is underpinned by our core values and we actively promote these values within the business and externally. Our people engagement score remains well above the Australian National Average, with Diversity and Inclusion one of the highest ranking categories in our staff engagement survey.

In 2019 GPT entered in to a 10-year partnership with the CareerTrackers Indigenous Internship Program which provides internships, work experience and employment opportunities for First Nations Australians. We were also awarded Employer of Choice for Gender Equality status by the Workplace Gender Equality Agency for the second year running, and we have continued our work toward further improving LGBTI inclusion. You can read more about our workplace activities later in this report.

2020 Outlook

The outlook for the Group in 2020 will be influenced by the effects on the economy, our tenants, customers and the communities in which we operate, resulting from the Coronavirus [COVID-19] pandemic and the response of governments and business to slow its spread.

While we acknowledge the challenges before us with this quickly evolving situation, the Group is well placed to respond to this uncertainty, with a high quality portfolio and very strong financial position which includes $1.3 billion of available liquidity held in cash and undrawn bank facilities. Gearing remains low at approximately 22 per cent, with less than $100 million of debt maturing through to December 2021. The Group maintains strong A/A2 credit ratings from S&P and Moody’s respectively.

We would like to thank all securityholders for their ongoing support and our employees for continuing to raise the bar and for delivering excellent outcomes for all stakeholders.

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Vickki McFadden Chairman

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Bob Johnston CEO and Managing Director

Financial Performance

EARNINGS GROWTH DISTRIBUTIONS UP $ 880m 2.6% 4.0% 8.7% NET PROFIT AFTER TAX FUNDS FROM OPERATIONS TO 26.48 CENTS PER TOTAL RETURN PER SECURITY SECURITY

Year ended 31 December	2019 ($m)	2018 ($m)		Change
Funds From Operations (FFO)	613.7	574.6		6.8%
Valuation increases	342.2	910.7
Financial Instruments mark to market and net foreign exchange loss	(82.7)	(39.6)
Other items1	6.8	6.0
Net Profit after Tax	880.0	1,451.7	q	39.4%

FFO per ordinary security (cents)	32.68	31.84		2.6%
Distribution per ordinary security (cents)	26.48	25.46		4.0%
As at 31 December	2019	2018		Change
Total assets ($m)	15,867.8	14,778.0		7.4%
Total borrowings ($m)	3,897.5	4,114.9	q	5.3%
Net tangible assets per security ($)	5.80	5.58		3.9%
Net gearing (%)	22.1	26.3	q	420 bps

Other items include net impairment expenses/reversals, amortisation of intangibles, AASB16 Leases non-FFO adjustment and related tax impact.

22.1% 3.6% GEARING WEIGHTED AVERAGE COST OF DEBT

96.5% PORTFOLIO OCCUPANCY

Well-Diversified Sources of Drawn Debt

AS AT 31 DECEMBER 2019

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USPP 44%
Domestic MTNs 23%
Foreign bank debt 9%
Commercial Paper 9%
Foreign MTNs 7%
Secured bank debt 3%
Domestic bank debt 2%
CPI Bonds 2%
kets 86%
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14
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GPT has an A (stable) credit rating from Standard & Poors and an A2 (stable) credit rating from Moody’s.

GPT Portfolio Diversity[1]

AS AT 31 DECEMBER 2019

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Retail 43%
Office 41%
Logistics 16%
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Based on GPT-owned assets plus GPT’s proportional interest in the Wholesale Funds (GWOF and GWSCF).

Office Portfolio

GPT’s office portfolio comprises ownership in 24 high quality assets across the three major capital cities on the eastern seaboard of Australia.

The Group’s office investments total $6.1 billion and comprise assets held on the Group’s balance sheet together with an investment in the GPT Wholesale Office Fund (GWOF). The Group has $13.1 billion of assets under management including Australia Square in Sydney, Melbourne Central Tower together with 181 William Street and 550 Bourke Street in Melbourne, and One One One Eagle Street in Brisbane.

10.0% TOTAL PORTFOLIO RETURN (12 MONTHS)

$ 271.2m PORTFOLIO VALUATION UPLIFT

147,600sqm LEASES SIGNED

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As at 31 December 2019 2018
Number of Assets [1] 24 25
Portfolio value $6.1 billion $5.9 billion
Comparable income growth 6.2% 5.8%
Occupancy [2] 98.3% [3] 97.1%
Weighted average lease expiry 5.3 years 5.2 years
Weighted average capitalisation rate 4.85% 4.95%
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GPT and GWOF owned assets. 2. Occupancy including signed leases. 3. Excludes Queen & Collins, Melbourne as is undergoing redevelopment.

Top Ten Tenants[4] AS AT 31 DECEMBER 2019

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Government 6 .2% 3. 3% QBE
CBA 6 .0% 3.0 % NBN Co
Members
IAG 5 .2% 2. 9% Equity
Bank
Deloitte 4 .3% 2. 4% NAB
Amazon Web
Services 3 .3% 2. 1% Citibank
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Tenant Mix [5] Geographic Weighting
AS AT 31 DECEMBER 2019 AS AT 31 DECEMBER 2019
SYDNEY
59%
MELBOURNE
31%
Banking 18%
Insurance 15%
Info and Comms Technology 13%
Accounting & Finance 13%
Legal 11% BRISBANE
Other Business Services 8% 10%
Other 8%
Government 8%
Mining & Energy 3%
Co-working/Serviced offices 3%
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Based on gross rent.
By area.

Office Developments

32 Smith Street Parramatta

Construction is progressing well on a new 26,400 square metre office tower at 32 Smith Street, Parramatta, with completion forecast for December 2020. The landmark tower is now 64 per cent leased[1] , with QBE anchoring the development. The project is expected to have an end value in excess of $320 million, and a 6 star Green Star environmental rating.

Artist’s impression.

Cockle Bay Park Sydney

The development opportunity at Cockle Bay Park is progressing well, with the project expected to deliver approximately 63,000 square metres of office space together with a 10,000 square metre retail and entertainment precinct. A Stage 1 Development Application approval has been achieved and an International Design Competition was held late in 2019, with a scheme by Henning Larsen selected as the winner. This exciting project will now progress to the final planning phase, with commencement of the project targeted for 2022.

Artist’s impression.

300 Lonsdale Street Melbourne

GPT has advanced plans for the Frame at 300 Lonsdale Street above Melbourne Central. The development is set to incorporate approximately 20,000 square metres of prime office accommodation, integrated into the retail centre below. The distinctive, timber framed structure is targeted to deliver a minimum 5 Star NABERS Energy and Water rating, and a 6 Star Green Star rating.

Artist’s impression.

Including Heads of Agreement post balance date.

Logistics Portfolio

GPT’s logistics portfolio consists of ownership in 35 high quality logistics and business park assets.

The Group’s logistics portfolio is made up of $2.4 billion of assets located across Australia’s eastern seaboard. With facilities located in major industrial areas including western Sydney, Melbourne’s west and Brisbane’s south, the portfolio has a long WALE of 7.3 years.

12.1% TOTAL PORTFOLIO RETURN (12 MONTHS)

$ 117.1m PORTFOLIO VALUATION UPLIFT

231 600 , sqm LEASES SIGNED

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As at 31 December 2019 2018
Number of Assets 35 28
Portfolio value $2.4 billion $1.9 billion
Comparable income growth 3.3% 2.8%
Occupancy [1] 94.4% 97.2%
Weighted average lease expiry 7.3 years 7.1 years
Weighted average capitalisation rate 5.40% 5.78%
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Includes signed leases.

Top Ten Tenants[2] AS AT 31 DECEMBER 2019

Geographic Weighting[3] AS AT 31 DECEMBER 2019

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Rand TNT
Coles Group IVE Group Toll Transport Australia
13.6% 7.6% 5.9% 4.8% 4.8%
4.2% 3.5% 3.2% 3.0% 2.8%
Pact Group Australian Goodman Schenker ACR Supply
Pharmaceutical Fielder Australia Partners
Industries
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NSW
68%
VIC QLD
24% 8%
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Based on net rent.
Excludes assets under development.

Logistics Developments

>[$] 1bn

PIPELINE EXPECTED END VALUE

>550 000 , sqm PIPELINE CAPACITY

COMPLETED IN 2019

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50 Old Wallgrove Road, Eastern Creek

Completed in January 2019, the asset comprises a modern 30,100 square metre office and warehouse facility located in the established market of Eastern Creek. It is located approximately 16 radial kilometres west of the Parramatta CBD and benefits from its close proximity to the M7 and M4 Motorways. The asset is leased to ACR Supply Partners.

21 Shiny Drive, Truganina

Completed in December 2019, the asset forms the first facility completed at GPT’s Gateway Logistics Hub. 21 Shiny Drive is a modern dual tenancy office and warehouse facility with a gross lettable area of 26,500 square metres and also features a super awning. The asset benefits from its close proximity to the Western Ring Road.

PROJECTS UNDERWAY

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Wembley Business Park (2 Ironbank Close), Berrinba

Located in Brisbane, GPT is developing two facilities comprising a total area of approximately 20,500 square metres. The asset has been pre-leased to an international logistics provider upon completion.

Wembley Business Park (30 Ironbank Close), Berrinba

Comprising an industrial office and warehouse facility of approximately 14,400 square metres, the new facility has been leased to two occupiers.

128 Andrews Road, Penrith

Located in the western Sydney suburb of Penrith, this development is due for completion in the second half of 2020. The facility will comprise approximately 50,100 square metres of modern high-clearance warehouse space, and upon completion is leased for a 10 year term.

38A Pine Road, Yennora

Activating surplus land at 38 Pine Road, this development will comprise approximately 4,800 square metres of modern warehouse space. The facility has been pre-leased for a 5 year term.

Images in the ‘Projects Underway’ section are artist’s impressions.

Wollongong Central, Wollongong

Retail Portfolio

GPT is a leading owner, manager and developer of Australian retail property.

The Group’s retail investments total $6.3 billion and comprises a portfolio of high quality assets held on the Group’s balance sheet and an investment in the GPT Wholesale Shopping Centre Fund (GWSCF). With a focus on assets that dominate their catchment areas, GPT has total retail assets under management of $9.8 billion including Melbourne Central, Rouse Hill Town Centre and Highpoint Shopping Centre.

4.4% TOTAL PORTFOLIO RETURN (OVER 12 MONTHS)

99.6% SHOPPING CENTRE AREA OCCUPIED

$ 11,667 SPECIALTY SALES PRODUCTIVITY ($PSM)

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As at 31 December 2019 2018
Number of shopping centres [1] 12 13
Portfolio value $6.3 billion $6.2 billion
Comparable income growth 1.2% 2.2%
Comparable total centre sales growth [2] 0.7% 2.4%
Comparable total specialty sales growth [2] 0.7% 3.6%
Specialty sales productivity [2] $11,667 per sqm $11,460 per sqm
Occupancy 99.6% 99.6%
Weighted average capitalisation rate 4.89% 4.88%
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GPT and GWSCF owned assets.
Based on GPT weighted interest and excludes assets under development. Growth is for the 12 months compared to the prior 12 months.

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Top Ten Tenants [3]
AS AT 31 DECEMBER 2019
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Geographic Weighting AS AT 31 DECEMBER 2019

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Cotton On
Woolworths Myer Wesfarmers Clothing Just Group
4.0% 2.7% 2.5% 2.5% 2.4%
1.9% 1.6% 1.6% 1.6% 1.6%
Coles Group Hoyts Country Road Accent Retail
Group Footwear Apparel
Ltd Group
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VIC NSW
44% 41%
QLD NT
10% 5%
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Based on gross rent (including turnover rent).

Retail Developments

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Melbourne Central

GPT has received Development Application approval for a new $70 million retail development at Melbourne Central, adjacent to the proposed new office building “The Frame”. The project will introduce a new 7,000 square metre retail, dining and entertainment precinct, with 40% of the development’s income already pre-leased.

The project will achieve a minimum five-star, Green star rating for both design and as built.

Melbourne Central was ranked ‘Most Productive Shopping Centre in Australia’ in 2019 and this development will capitalise on the strong market growth forecast for the next decade.

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Rouse Hill Town Centre

GPT has progressed plans for a $200 million expansion of Rouse Hill Town Centre, introducing a further 20,000 square metres of retail and commercial space.

The asset has been achieving strong sales productivity growth and sits in the high growth market of North West Sydney, which is now benefiting from significant infrastructure investment. The launch of the North West Metro and the Rouse Hill station has brought instant benefits to the centre with noticeable increases in traffic to the adjoining precinct contributing to the centre strong specialty sales productivity growth which has averaged 7.6% over the last 3 years.

The focus of the coming months is to advance design, confirm authority approvals and finalise leasing deals with several key tenants that are pre-leased prior to commencing the project. The development will achieve a minimum five-star, Green star rating for both design and as built.

Images used above are artist’s impressions.

Funds Management

The GPT Funds Management platform comprises two wholesale funds in the retail and office sectors with a combined $13.3 billion of funds under management. For the 12 months to 31 December 2019, the Funds delivered a total return of 6.8%.

The GPT Wholesale Office Fund (GWOF) owns 18 high quality office assets, located across Australia’s key CBD office markets. At 31 December 2019, the Fund had a value of $8.8 billion.

The GPT Wholesale Shopping Centre Fund (GWSCF) provides wholesale investors with exposure to seven high quality retail assets. At 31 December 2019, the Fund had a value of $4.5 billion.

$ 13.3b IN FUNDS UNDER MANAGEMENT

6.8% TOTAL RETURN TO GPT DELIVERED BY FUNDS MANAGEMENT PLATFORM

$ 0.7b GROWTH IN FUNDS UNDER MANAGEMENT 12 MONTHS TO 31 DECEMBER 2019

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18.0%
15.8%
16.0%
Growth in AUM 14.0%
12.0%
and EBIT 10.0%
(5 year CAGR) 8.0% 6.7%
6.0%
4.0%
2.0%
0.0%
Assets Under Management (AUM) Growth Underlying Earnings Before Interest
and Taxes (EBIT) Growth
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GPT Wholesale Office Fund Development Opportunities

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Queen & Collins Streets Melbourne

Redevelopment is underway at Queen & Collins in Melbourne which is 100% owned by GWOF. The project will deliver refurbishment of the whole building and 35,000 square metres NLA of office space, with completion expected in 2021.

51 Flinders Lane Melbourne

GWOF owns a 100% interest in the existing 32 Flinders Street car park, adjacent to 8 Exhibition Street which is 50% owned by the fund. The Fund is currently exploring redevelopment opportunities for the site.

Images used above are artist’s impressions.

GWOF Development Pipeline

The Fund has various development opportunities on land already owned in Sydney, Melbourne and Brisbane. These opportunities are being explored as medium to long term asset creation projects, subject to funding, consultation and approvals from the Investor Representation Committee and the Board.

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GWOF Indicative Timing
Ownership GWOF
Asset Share Spend 2019 2020 2021 2022 2023 2024 2025
Queen & Collins,
100% $238m $238m
Melbourne VIC
Cockle Bay Park,
50% $800m $40m $760m
Sydney NSW
51 Flinders Lane (at 32 Flinders
100% $400m $400m
Street), Melbourne VIC
Skygarden (at Riverside Centre),
100% $400m $400m
Brisbane QLD S
Corner of George & Bathurst
(at 580 George Street), 100% $150m $150m
Sydney NSW
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Under consideration

Development approved

Listed in the

top 1% of the Dow Jones Sustainability Index (DJSI) real estate companies

60% emissions intensity reduction since 2005

GRESB Green Star ranking in the top quintile for 8th year in a row

46%

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water intensity reduction
since 2005
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100% of GPT-managed assets recognised National Reconciliation Week

31% closed loop recycling rate in 2019

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GPT released its inaugural
TCFD-aligned report in Feb 2020
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80%

of GPT staff gave time, money or effort to the community in 2019

5.5

Office portfolio NABERS Energy Rating with GreenPower Solpod project at Highpoint, Victoria

Sustainability

As part of our vision to be the most respected property company in Australia, GPT responds to a number of major Environmental, Social and Governance (ESG) benchmarks each year, including GRESB and the Dow Jones Sustainability Index (DJSI). Our investors, customers, peers and the community expect us to perform well in sustainability, and these benchmarks are a key way we demonstrate our commitment and action. Pleasingly, we’ve maintained a leadership position in our industry for delivering sustainable business outcomes, ranking third globally in the DJSI and achieving a GRESB survey outcome that places us in the top 20 per cent of respondents. We have a lot of work in the space planned for 2020 and beyond and look forward to reporting our results to you.

The GPT Group has a goal to be carbon neutral by 2030 for all GPT assets, and by the end of 2020 for all assets owned by the GPT Wholesale Office Fund (GWOF). In 2019, GPT delivered its first carbon neutral buildings as part of GWOF’s commitment. 8 Exhibition St, Melbourne and workplace[6] , Pyrmont, became the first buildings in Australia to achieve the certification under both the NABERS and Climate Active standards, and in line with the Greenhouse Gas Protocol. This certification process will provide a pathway to deliver carbon neutral buildings across the remainder of GPT and GWOF’s portfolio.

An Energy Master Plan has been developed to ensure that the zero emissions milestone is achieved in a manner that reduces total energy cost and price volatility, engages partners to ensure ongoing ease of implementation, and contributes to the reliability of supply. A holistic balance of strategies are being implemented, with efficiency at the core. The Energy Masterplan will build on the 45 per cent improvement in energy efficiency that the Group has achieved since 2005 and ensure new efficiencies are systematically maintained. The Group is focused on rolling out solar arrays on all sites where it is feasible to augment existing grid supplies, and has installed Solpod technology, a pre-fabricated mobile rooftop system on eight assets. We are continuing with the implementation of demand response programs, a battery safety study, off-site renewables procurement and plans for electrification of our gas infrastructure to eliminate emissions and reduce exposure to an escalating gas market.

In February 2020, the Group released its inaugural Climate Disclosure Statement aligned to the Task Force on Climate related Financial Disclosures (TCFD) recommendations. The TCFD was formed to develop voluntary and consistent climate related financial risk disclosures for use by investors and other stakeholders. The report outlines the steps we are taking to identify, assess and manage climate change risks and opportunities. A copy of the TCFD Statement is available on our website.

Awards and Achievements

The Global Real Estate Sustainability Benchmark (GRESB) is an industry-driven organisation committed to assessing the sustainability performance of real estate portfolios around the globe. GPT maintains a Green Star (top quartile) status, a position held since the inception of the benchmark.

Recognised as an Employer of Choice (2018-2019) for the second year running.

GPT buildings workplace[6] and 8 Exhibition Street became the first buildings in Australia to achieve carbon neutral certification by NABERS and the Climate Active Carbon Neutral Standard in alignment with the international Greehouse Gas Protocol.

GPT is listed as an index member of the Dow Jones Sustainability Index.

GPT is committed to carbon neutrality, with the GPT Wholesale Office Fund becoming a signatory to the Net Zero Carbon Buildings Commitment. GWOF targets to deliver carbon neutrality by the end of 2020.

GPT is committed to promoting workplace LGBTI inclusion, education and support. GPT annually benchmarks itself with the Australian Workplace Equality Index and increased its score by 88% in 2019.

In 2019 GPT continued the work of its Stretch Reconciliation Action Plan, launched in 2018 to further its contribution in creating an environment which provides equal life opportunities for all Australians.

The GPT Foundation partners with seven Australian charities that support at-risk young people, and encourages staff members to get involved in different ways.

GPT earned the Bronze Class distinction in the SAM Sustainability Yearbook 2020 for its leading performance in the DJSI Corporate Sustainability Assessment.

Further information:

GPT’s reporting is fully integrated across all communications including comprehensive sustainability case studies and information provided throughout GPT’s website. For expanded commentary on GPT’s performance and priorities as well as the Group’s comprehensive suite of policies covering its commitment to sustainability, visit GPT’s website at www.gpt.com.au.

Our Environment

GPT is committed to reducing its environmental impact and aspires to be an overall positive contributor to environmental sustainability.

Climate Change and Energy

GPT is committed to achieving operational carbon neutrality in areas within its control by 2030. The Group is also committed to supporting and encouraging its stakeholders to reduce greenhouse gas emissions and energy use in areas within its influence. KEY ACHIEVEMENTS IN 2019 INCLUDED:

45% reduction in energy intensity since 2005
60% reduction in emissions intensity since 2005
$28 million of electricity and $1 million of gas related avoided costs[1]
• 166,575 tonnes CO2e greenhouse gas emissions avoided in 2019 compared to baseline emissions intensity
3.04 MW of solar photovoltaic systems installed

Water

GPT aims to use, source, re-use and discharge water efficiently. It recognises water is a constrained but essential resource to the sustainability of its business and more broadly to society and the environment, especially within Australia.

KEY ACHIEVEMENTS IN 2018 INCLUDED:

46% reduction in water intensity since 2005
$5.5 million of avoided costs[1]
1.4 million kilolitres of water saved in 2019 alone[1]

Waste and Resource Management

GPT is committed to a ‘closed loop’ approach to resource use and minimising waste to landfill in all areas within its control. This means that waste materials are recovered in a way that enables them to re-enter the same production cycles and be used for the same purpose, more systemically reducing virgin material loss and pollution when compared to targeting the ‘down-cycling’ or diversion of materials from landfill.

KEY ACHIEVEMENTS IN 2019 INCLUDED:

31% of total waste materials recovered to a closed loop recycling standard
Growth in organic recycling offset the impacts of reduced mixed container recycling due to closure of recycling facilities in Australia
Roll out of NABERS Waste ratings in GPT assets continued, with the achievement of the GPT’s first 4 Star NABERS Waste ratings
Compared to 2005 baseline.

Sustainability in GPT’s Portfolio

	Retail Portfolio	Office Portfolio
Emissions intensity	44% reduction since 2005	75% reduction since 2005
Energyintensity	39% reduction since 2005	50% reduction since 2005
Water intensity	38% reduction since 2005	54% reduction since 2005
Recycling/Diversion rate	33%	40%

People & Community

Social Sustainability at GPT

GPT reaches millions of Australians every day across the country. Our assets are destinations attracting people for work, shopping and leisure activities. We are proud, active members of the communities within which our assets are situated and know that the provision of environments that foster our People to excel and our Customers and Communities to prosper also creates value for our Investors. We are committed to three focus areas: health and wellbeing, social inclusion and community connection, and program delivery and engagement at multiple levels. At the societal level, our activities are aligned to GPT’s corporate strategy and matched to the core capabilities of the business. At the local level we believe we create the most value by helping to build the capacity of the communities within which we operate, on issues of most importance to them.

Stakeholder engagement is a business priority and ensures that we understand, and can appropriately respond to, the unique and specific challenges of each of our communities as they change over time.

2019 Key Activities

In the first half of the year the Group conducted an Employee Engagement Survey. GPT’s Sustainable Engagement Score was 80 per cent, which was 4 per cent higher than the Australian National Norm. It is pleasing to see that we increased scores in 11 out of the 16 categories and maintained our strength in areas such as Diversity and Inclusion, and Career Development and Learning.

GPT is committed to ensuring safety remains a key priority, where a high performing safety culture is adopted and sustained by all GPT employees across all workplaces. The Group undertook an extensive safety risk culture review, which led to the Group establishing a new company value in late 2019; Safety First – Everyone, Always. Our values are important in defining our organisational culture and in shaping our behaviours every day, and this further focuses our engagement in placing the safety of our colleagues, people who visit our assets, our business partners and supply chain above everything else.

Diversity & Inclusion

GPT has continued to make progress against our Diversity and Inclusion targets. During the first half of 2019, GPT increased female representation in our top quartile (by income) by 4 per cent to 46 per cent, and overall female representation in the Group increased to 55 per cent. GPT also maintained a gender balanced Board with the appointment of Tracey Horton on 1 May 2019. GPT’s commitment to Gender diversity was recognised in February 2019 with the achievement of the Workplace Gender Equality Agency’s (WGEA) Employer of Choice for Gender Equality citation. GPT has also continued its role as the national sponsor of the Property Council of Australia’s 500 Women in Property program.

GPT also continued to work toward improved LGBTI inclusion, conducting a survey and submitting a ranking to the Australian Workplace Equality Index (AWEI) for the third consecutive year. The survey and submission provide valuable feedback on how GPT is tracking on workplace inclusion, and gives insight into our opportunities for improvement. As one of over 100 Australian businesses taking part in the index, we see that our continued involvement in the AWEI is key to our commitment to be more inclusive for LGBTI identifying individuals in our workplace, across our assets and the communities within which we operate.

Stretch Reconciliation Action Plan

GPT is continuing to deliver on its Stretch Reconciliation Action Plan, a three year formal commitment to Australia’s reconciliation movement governed by Reconciliation Australia. We are proud to be progressing well against our objectives, and continuing to grow genuine trusted relationships with First Nations stakeholders in our communities.

In 2019, more than 100 employees participated in cultural learning workshops and activities including the Group’s first immersion experience to the Bawaka Homelands. These activities help foster our peoples’ understanding and awareness of Australia’s history and incredible cultures, and advance ways we can give voice and opportunities to First Nations Australians.

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Career Trackers 2019 Gala Dinner
23
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We signed a ten year commitment to CareerTrackers in 2019, which helps raise the profile of the property industry to First Nations university students, and we are pleased to continue to support the professional development of highly capable individuals through this program. In 2019 we also hosted Year 12 students as part of a CareerTrackers pilot program, and were very proud that two of the prestigious annual CareerTracker awards recognized our interns.

With our First Nations partners, GPT hosted more than 25 activations across the portfolio in 2019 supporting our customers and tenants to grow their understanding and engagement with their local First Nations community. We are also working closely with First Nations communities and partners on key development projects, incorporating Acknowledgment of Country features in our assets and incorporating local story into design features.

We are also pleased that in 2019 eight of our top ten suppliers now have formalised Reconciliation Action Plans, which is a way we can engage our broader network in contributing to reconciliation.

GPT Foundation

In its second year of operation, the GPT Foundation is working with seven community partners to foster positive outcomes for youth at risk, and coordinates GPT’s philanthropic activities including facilitating different ways for our people to give back to the community through fundraising, workplace giving and volunteering of their time. The Foundation is working particularly closely with ReachOut, Australia’s leading on-line mental health organisation for young people and their parents, and the Australia Childhood Foundation, an organisation that works to protect children and restore childhoods. Since its inception, GPT has seen a significant increase in participation of GPT employees in volunteering activities, with more than 80 per cent of our people contributing time, money and effort to the GPT Foundation in 2019. The Foundation is an important pillar of GPT’s engagement with the community and reflects the importance that we place on being an active community member.

Our Suppliers

GPT has voluntarily adopted the Australian Supplier Payment Code issued by the Business Council of Australia. This code aims to encourage payments to small businesses to be made in a timely manner to ensure they remain viable and maintain healthy cashflows and working capital.

We are committed to paying our small suppliers within 30 calendar days of providing a valid invoice. All suppliers are sent a supplier Registration Form including invoice requirements. Small suppliers are those who annually supply less than $250,000 worth of goods and services to GPT.

Over the 12 months to 31 December 2019 on average, 93 per cent of small suppliers were paid within the agreed terms based on the date of receipt of a valid invoice and 70 per cent were paid within agreed terms from the invoice date.

Our Customers

Throughout 2019, GPT has continued to develop a number of initiatives across digital, data and insights to better understand shopper motivations and needs, partner with retailers by sharing these insights and informing decision making to create value and drive performance and productivity. GPT is committed to maintaining a high standard of engagement with our partners through sharing research insights and hosting events on emerging trends. We continue to measure our performance through an annual industry survey which identifies retailers level of satisfaction with the Group and opportunities to improve our current relationships.

GPT’s office team also remains focused on delivering outstanding service to our customers which underpins our retention strategy. Annually the Group undertakes an independent customer survey across the office portfolio, achieving an 86% customer satisfaction score in 2019, an increase of 1% on the result achieved in 2018. The insights from this survey allow us to anticipate future customer needs and demand for new services.

Modern Slavery Response

GPT strongly supports the recent introduction of the Modern Slavery Act which seeks to drive more transparency in global supply chains and ensure that goods and services in Australia have not been exposed to modern slavery. In preparation for the implementation of legislation, GPT has established a Modern Slavery Committee to ensure the Group has in place processes and appropriate oversight to identify, manage and mitigate the risk of modern slavery in our supply chain and operations and develop a Modern Slavery Statement. In accordance with the legislation, GPT will report against the following criteria: the entity’s structure, operations and its supply chain; the Modern Slavery risk present in the entity’s operations and supply chains; policies and processes to address Modern Slavery in its operations and supply chain; and due diligence processes relating to Modern Slavery.

The Group is also participating in the Property Council of Australia’s Supplier Assessment Platform. The platform is designed to streamline the collection of our supply chain information from property industry suppliers and will be an important input into the process to assessing our supply chain for any potential risks of Modern Slavery.

Customer Focus

Customer Satisfaction Survey – Office by independent consultant Campbell Scholtens

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#1 GPT portfolio ranking to surveyed peers[1]

86%[Customer satisfaction ] score

+1%[Increase in score on ] prior year

Number one position on a rolling three-year average basis.

Melbourne Central, Melbourne

GPT’s Values and Culture

GPT is focussed on creating the conditions in which its people can realise their potential and consistently deliver high performance. GPT does this through the combination of a diverse workforce and inclusive culture, a dynamic and flexible work environment, advanced systems, mobile technology and a lean management structure to minimise costs and drive productivity. GPT’s shared sense of purpose – to create value by delivering superior returns to investors, and to provide environments that enable our people to excel and customers and communities to prosper – is underpinned by a culture that emphasises the following core values:

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SAFETY FIRST, DELIVER TODAY, VALUE DIFFERENCES,
EVERYONE ALWAYS CREATE TOMORROW PLAY AS A TEAM
RAISE THE BAR SPEAK UP
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A Culture Dashboard was developed during 2019 to assist the Board to monitor GPT’s performance in this area. Key areas of focus throughout the year include:

	Focus area		Commentary
	Engagement		GPT has a high calibre workforce, characterised by strong levels of employee engagement. Engaged,
			energised and enabled employees lead to superior business outcomes. GPT strives to enable a consultative
			work environment where employee views are sought out, respected, and where appropriate, acted upon.
			Typically, GPT conducts employee engagement surveys every 18 to 24 months and pulse surveys on focussed
			topics during the intervening period. In 2019, GPT achieved an overall sustainable engagement score of 80%
			(comparing favourably to the Australian National Norm) and a participation rate of 86%. GPT celebrates this
			result as it demonstrates strong employee alignment to our vision, purpose, values and strategy.
	Equal		GPT is committed to creating a diverse and inclusive workplace by providing equal opportunity in all aspects
	Opportunity		of employment. GPT is an inclusive employer where differences such as sexuality, sex, gender identity, race,
			beliefs, age or abilities are valued. The Board and management recognise that a diverse workforce reflects
			GPT’s diverse customer base and generates diversity in thought that enhances decision making processes and
			Group performance. During 2019, GPT achieved its second consecutive Workplace Gender Equality Agency
			(WGEA) Employer of Choice citation recognising GPT’s performance in this area as among the best employers
			in Australia. Sponsorship of the Property Council of Australia 500 Women in Property program continued as
			did GPT’s commitment to the CareerTrackers Indigenous Internship Program by signing a 10 year partnership
			with the not for profit organisation.
	Behaviour and		GPT is proud of its reputation for applying the highest ethical and moral standards in all its dealings. The
	Consequences		Code of Conduct (the Code) sets out the standard of behaviour expected of all employees, and aligns to GPT’s
			vision to be the most respected property company in Australia. The Code was updated during the year, better
			clarifying the expectations GPT holds of its employees and emphasising personal responsibility for meeting
			them. Disciplinary Guidelines were added to the Code and include possible actions should standards not
			be met. GPT’s expectations of its employees are regularly reinforced via compulsory training and direct
			communications from management.
	Safety		Everyone at GPT plays a part in ensuring that our colleagues and people that visit our assets go home safely
			– whether they be customers, contractors or members of the broader community. GPT is unequivocal in
			its commitment to ensuring that safety remains a key priority for every employee across every workplace.
			Safety has always been part of GPT’s DNA, and in 2019 the Group sought to emphasise its importance.
			During the period, GPT engaged an external partner to assist in a safety risk culture review which will form
			part of a holistic safety program, focussed on cultural transformation and safety leadership. A two day
			safety leadership conference was held for selected employees with the learnings shared across the broader
			employee base. The organisational values were also enhanced to include a new value “Safety First – Everyone,
			Always” demonstrating GPT’s explicit objective in this area.
	Risk Culture		GPT’s approach to risk management incorporates culture, people, processes and systems to enable the
			organisation to realise potential opportunities whilst managing potential adverse effects. GPT is committed to
			maintaining a transparent and accountable culture where risk is actively considered and managed in our day
			to day activities.

Board of Directors

The Boards of GPT RE Limited and GPT Management Holdings Limited have the same Directors comprising six Non-Executive Directors and one Executive Director. Members of the Board have significant experience in various fields, including funds management, property investment and development, financial markets, taxation, accounting and law.

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Vickki McFadden CHAIRMAN

Vickki was appointed to the Board on 1 March 2018 and is also a Chairman of the Nomination Committee and a member of the Human Resources and Remuneration Committee. She brings a broad range of skills and experience to the Group gained during an 19 year career spanning investment banking, corporate finance and corporate law, and through her current and previous board-level positions.

Vickki currently holds Non-Executive directorships in the following listed entities and other entities:

Tabcorp Holdings Limited (since 2017);
Newcrest Mining Limited (since 2016); and
Myer Family Investments Pty Limited (since 2011).

She is also a Member of Chief Executive Women and a Member of the Advisory Board and Executive Committee of the UNSW Business School.

Vickki was previously Chairman of Eftpos Payments Australia Limited, Chairman of Skilled Group Limited (prior to its acquisition by Programmed Maintenance Services Limited), a non-executive Director of Leighton Holdings Limited, President of the Takeovers Panel and a Managing Director of Investment Banking at Merrill Lynch Australia.

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Bob Johnston CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR

Bob was appointed to the Board as Chief Executive Officer and Managing Director in September 2015. Bob is also a member of the Nomination Committee. He has 32 years’ experience in the property sector including investment, development, project management and construction in Australia, Asia, the US and UK. Prior to joining GPT, Bob was the Managing Director of listed Australand Property Group and held senior executive positions within the Lendlease Group.

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Dr Eileen Doyle NON-EXECUTIVE DIRECTOR (RETIRED IN MAY 2019)

Eileen was appointed to the Board in March 2010. At the time of her retirement from the Board she was Chairman of the Sustainability and Risk Committee and a member of the Nomination Committee and the Audit Committee. She has diverse and substantial business experience having held senior executive roles and directorships in a wide range of industries, including research, financial services, building and construction, steel, mining, logistics and export. Eileen is also a Fellow of the Australian Academy of Technological Sciences and Engineering.

At the time of her retirement from the Board, Eileen held the position of Non-Executive Director in the following listed entities:

Boral Limited (since 2010); and
Oil Search Limited (since 2016).

Eileen was also previously a Director of Bradken Limited from 2011 to November 2015.

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Swe Guan Lim NON-EXECUTIVE DIRECTOR (RETIRED DECEMBER 2019)

Swe Guan was appointed to the Board in March 2015 and at the date of his retirement from the Board was a member of the Nomination Committee and the Audit Committee. Swe Guan bought significant Australian real estate skills and experience and capital markets knowledge to the Board, having spent most of his executive career as a Managing Director in the Government Investment Corporation (GIC) in Singapore.

Swe Guan is currently Chairman of Cromwell European REIT in Singapore (since 2017) and a Director of Sunway Berhad in Malaysia (since 2011). Swe Guan is also a member of the Investment Committee of CIMB Trust Cap Advisors and was formerly a Director of Global Logistics Property in Singapore until January 2018.

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Michelle Somerville NON-EXECUTIVE DIRECTOR

Michelle was appointed to the Board in December 2015 and is also the Chairman of the Audit Committee and a member of the Nomination Committee and the Sustainability and Risk Committee. She was previously a partner of KPMG for nearly 14 years specialising in external audit and advising Australian and international clients both listed and unlisted primarily in the financial services market in relation to business, finance risk and governance issues. Michelle currently holds the position of Non-Executive Director in the following entities:

IOOF Holdings Ltd (since 2019);
Bank Australia Limited (since 2014);
Save the Children (Australia) (since 2012); and
Down Syndrome Australia (since 2011).

Michelle is also an independent consultant to the UniSuper Ltd Audit, Risk and Compliance Committee (retired March 2020) and was previously a non-executive Director of Challenger Retirement and Investment Services Ltd.

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Gene Tilbrook NON-EXECUTIVE DIRECTOR

Gene was appointed to the Board in May 2010 and is also the Chairman of the Sustainability and Risk Committee and a member of the Nomination Committee and the Audit Committee. He brings extensive experience in finance, corporate strategy, investments and capital management.

Gene currently holds the position of Non-Executive Director in the following listed entities:

Orica Limited (since 2013); and
Woodside Petroleum Limited (since 2014).

Gene was also previously a Director of other listed entities including Fletcher Building Limited and Aurizon Holdings Limited (2010 to February 2016).

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NON-EXECUTIVE DIRECTOR Angus McNaughton

Angus was appointed to the Board in November 2018 and is also a member of the Human Resources and Remuneration Committee, Nomination Committee and the Audit Committee. He brings extensive experience in property investment, development and management and funds investment.

Angus was previously the CEO and Managing Director of Vicinity Centres from August 2015 until December 2017. Prior to that time, Angus served as the Managing Director Property for Colonial First State Global Asset Management from 2011, before becoming the CEO and Managing Director of ASX-listed Novion Property Group in 2014. Angus led Novion through to the completion of the merger between Novion and Federation Centres, renamed as Vicinity Centres, in June 2015.

Angus does not currently hold any Non-Executive Director roles in other listed entities. Angus is a member of the REST Due Diligence Review Panel.

He was also previously Director, Real Estate of First State Investments in Singapore and Chief Executive Officer of Kiwi Income Property Trust in New Zealand.

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Mark Menhinnitt NON-EXECUTIVE DIRECTOR

Mark joined the GPT Board in October 2019 and is a member of the Nomination Committee and the Sustainability and Risk Committee.

Mark has significant investment management, construction, development and urban regeneration experience in the real estate and infrastructure sectors, drawn from his 30 year career at Lendlease including as CEO of Lendlease Australia.

Mark does not currently hold any Non-Executive roles in other listed entities.

Mark is a graduate member of the Australian Institute of Company Directors and a fellow of the Governance Institute of Australia.

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Tracey Horton AO NON-EXECUTIVE DIRECTOR

Tracey joined the GPT Board in May 2019 and is Chairman of the Human Resources and Remuneration Committee, and a member of the Nomination Committee and the Sustainability and Risk Committee.

Tracey currently holds the position of Non-Executive Director of listed entity Nearmap Ltd (since 2019) and is Acting President of the Australian Takeovers Panel and Deputy Chairman of the Australian Institute of Company Directors. Tracey is also Chair of the Australian Industry and Skills Committee and a Commissioner for Tourism Western Australia.

Tracey was previously a non-executive director of Navitas Limited from June 2012 to July 2019 (Chairman from November 2016 to July 2019), a non-executive director of Skilled Group and Automotive Holdings Group, president of the Chamber of Commerce and Industry (WA) and Winthrop Professor and Dean of the University of Western Australia’s Business School. Prior to that she held executive and senior management roles in North America with Bain & Company in North America, and in Australia with Poynton and Partners and the Reserve Bank of Australia.

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Darling Park, Sydney
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Leadership Team

The Leadership Team is responsible for all aspects of the management of the Group, its properties and services. This includes determining the strategic direction, managing assets, acquiring and selling properties, accessing funding and providing appropriate services to investors. The team has extensive experience in the A-REIT industry along with a diverse skill base and proven track record in delivering results.

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Bob Johnston CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR

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Anastasia Clarke CHIEF FINANCIAL OFFICER

Anastasia joined The GPT Group in 2009, and as Chief Financial Officer is responsible for capital management, financial reporting, accounting, tax and technology. Named one of Asia’s 25 Most Influential Women in Finance & Treasury in 2015, and with over 25 years of experience in the real estate industry, Anastasia’s past roles include Chief Financial Officer at New City Australia and Singapore, Treasurer and Head of Finance at Dexus Property Group and corporate treasury and project finance roles at Lendlease. Anastasia was President of the Property Council of Australia’s Capital Markets Division and is a current member of the Audit and Risk Committee of Western Sydney University.

Anastasia is a Fellow of the Australian Society of Certified Practicing Accountants, a Fellow of Chartered Accountants ANZ and holds a Bachelor of Accounting from the University of Technology, Sydney.

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Mark Fookes CHIEF OPERATING OFFICER

In his role as Chief Operating Officer Mark chairs the Investment and Valuation Committee, oversees the operations of the business and has responsibility for the Corporate Affairs, People and Performance, Sustainability, Procurement, Health and Safety, Risk and Internal Audit functions.

Mark has more than 30 years of experience in the property industry. He most recently held the position of Chief Financial Officer for three years and before that was Head of Investment Management. Prior to working at GPT, Mark was Head of Retail (Asia Pacific) at Lendlease and before that was General Manager of Retail Property Management and Leasing.

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Jacqui O’Dea CHIEF RISK OFFICER

As Chief Risk Officer (CRO), Jacqui has responsibility for the Risk, Audit, Sustainability, Procurement and Health and Safety functions of the business. Jacqui has more than 20 years’ experience in the property industry.

Prior to becoming CRO, Jacqui was GPT’s Deputy General Counsel and was also Company Secretary for the GPT Wholesale Funds. Before joining GPT, Jacqui worked as a Senior Legal Counsel at Lendlease and a lawyer with Ashurst (formerly Blake Dawson Waldron).

James Coyne GENERAL COUNSEL AND COMPANY SECRETARY

James is responsible for the legal, compliance and company secretarial activities of GPT. James was appointed the General Counsel/Company Secretary of GPT in 2004.

His previous experience includes company secretarial and legal roles in construction, infrastructure and the real estate funds management industry, both listed and wholesale.

Nicholas Harris HEAD OF FUNDS MANAGEMENT, GROUP STRATEGY AND RESEARCH

Nicholas is responsible for GPT’s funds management activities. He plays a key role in the development of GPT’s Group Strategy and oversees its Research and Transactions functions.

Nicholas has been involved in property and funds management for more than 30 years, holding property related roles at BT Funds Management Limited and Lendlease prior to joining The GPT Group in 2006.

Nicholas is a member of the Executive Board of the Asian Association for Investors in Non-listed Real Estate Vehicles (ANREV) and a member of the Property Council of Australia’s Global Investment Group committee. He is also a Fellow of the Financial Services Institute of Australasia.

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Matthew Faddy HEAD OF OFFICE & LOGISTICS

Matthew has over 25 years’ professional experience in leading successful teams in real estate, including finance management, funds management, asset management and portfolio management. As Head of Office & Logistics, Matthew is responsible for the investment, asset management, and development of the Group’s portfolio of office and logistics assets.

Matthew joined GPT in 2006 and has held leadership roles in both the Retail and Funds Management business units prior to his current role.

Matthew is a Fellow of Chartered Accountants ANZ and a Graduate of the Australian Institute of Company Directors.

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Chris Barnett HEAD OF RETAIL

Chris is responsible for GPT’s retail asset and investment management, as well as GPT’s retail and mixed use development function.

Chris has over 22 years of real estate and asset management experience, with the majority of this gained within the retail property sector. Chris has held various senior roles in Westfield and Scentre Group in Australia, New Zealand and the United States.

Most recently Chris has held the position of General Manager, Development and Strategic Asset Management (NSW/SA) at Scentre Group, where he was responsible for investment performance and the delivery of a number of development projects across Scentre’s NSW and South Australian portfolio.

Remuneration Report

The Human Resources and Remuneration Committee (the Committee) of the Board presents the Remuneration Report (Report) for the GPT Group. This Report has been audited in accordance with section 308(3C) of the Corporations Act 2001 .

The Board aims to ensure that the GPT Group’s remuneration platform is both market competitive and fair to all stakeholders; aligns performance measures to the achievement of GPT’s strategic objectives; and communicates the remuneration outcomes clearly and transparently.

Governance

Who are the members The Committee consists of the following three Non-Executive Directors: of the Committee? • Tracey Horton AO (Committee Chairman) • Vickki McFadden • Angus McNaughton 2019 saw renewal and change on the Committee in line with changes to the Board: • Gene Tilbrook stepped down from the Committee on 16 May 2019. What is the scope of In 2019 the Committee undertook the following activities on behalf of the Board: work of the Committee?

2019 saw renewal and change on the Committee in line with changes to the Board:

Tracey Horton joined GPT on 1 May 2019 and was appointed Chairman of the Committee from 16 May 2019 while Gene Tilbrook stepped down from the Committee on 16 May 2019.

In 2019 the Committee undertook the following activities on behalf of the Board:

Oversee the management of culture.
Implement, monitor, evaluate and oversee GPT’s remuneration framework.
Review and recommend to the Board for approval the remuneration for the Board, Chief Executive Officer and Managing Director (CEO) and approve remuneration for executives that are direct reports to the CEO.
Review and recommend to the Board for approval the key performance indicators for the CEO and assess the CEO’s performance against those key performance indicators.
Review compliance with legal and regulatory requirements associated with the activities of the Committee.
Oversee the succession planning process for the Leadership Team (excluding the CEO, which is a responsibility of the Nomination Committee[1] ).
Approve and oversee the implementation of GPT’s diversity & inclusion strategy, initiatives and policies.
Receive reports in relation to talent development and employee engagement initiatives.

Who is included in the GPT’s Key Management Personnel (KMP) are the individuals responsible for planning, controlling and managing Remuneration Report? the GPT Group (being the Non-Executive Directors, CEO, Chief Financial Officer (CFO), and the Chief Operating Officer (COO)).

Effective 1 January 2019 a Nomination Committee was formed consisting of the full Board. Further information about the role and responsibility of both the Committee and the Nomination Committee is set out in their respective Charters, which are available on GPT’s website (www.gpt.com.au). No additional fees are paid for membership of the Nomination Committee.

Committee key decisions and remuneration outcomes in 2019

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Platform component Key decisions and outcomes
Base pay (Fixed) • Implemented the annual review of employee base pay effective 1 January 2019, with an overall increase of 2.51%.
• Following benchmarking, implemented an annual review of Non-Executive Director base and committee fees effective
1 January 2019, with an average increase of 1.72% to bring Non-Executive Directors’ remuneration closer to market.
Short term incentive • Maintained Funds from Operations (FFO) growth per security as the primary measure of Group financial performance.
compensation (STIC) • The Group achieved an FFO growth per security outcome of 2.6%. The Committee exercised its discretion to adjust the
FFO per security outcome taking into account the dilution resulting from the equity raise and interest expense savings
from the hedge restructure. This resulted in an outcome between target and stretch and a STIC pool of $15.8 million.
• Maintained a deferred equity component of STIC vesting in one tranche at the end of the year following the conclusion
of the performance period.
• Determined that the calculation for the number of securities to be issued under the security-based component of
GPT’s STIC award be made by reference to the 30-day Volume Weighted Average Price (VWAP) immediately before the
end of the relevant performance period from 2020 onward [1] .
Long term incentive • Achieved a compound annual Total Return [2] for the 2017-19 period of 13.19%, exceeding the benchmark of 10% for
(LTI) compensation maximum award, and delivered a Total Securityholder Return (TSR) [3] of 41.33% which exceeded the ASX 200 AREIT
Accumulation Index (the Index) performance of 40.85% by 0.48% [4] .
• Implemented the 2019-2021 LTI with two performance measures, Total Return and Relative TSR.
• Maintained the same performance hurdles, ranges and vesting schedules as the prior year’s LTI plan.
• Determined that the calculation for the number of performance rights issued under future LTI plans, be made by
reference to the 30-day VWAP immediately prior to the commencement of the performance period from 2020 onward [5] .
Other employee • Continued the General Employee Security Ownership Plan (GESOP) for 108 STIC eligible employees not in the LTI.
ownership plans Under GESOP each participant receives an amount equal to 10% of their STIC (less tax) delivered in GPT securities,
which must be held for at least 1 year.
• Continued the Broad Based Employee Security Ownership Plan (BBESOP) for 258 employees ineligible for GESOP.
Under BBESOP, subject to GPT achieving the annual FFO growth per security target, participants receive $1,000 worth
of GPT securities that cannot be transferred or sold until the earlier of 3 years from the allocation date or cessation of
employment (or $1,000 cash (less tax) at the election of the individual).
Policy & governance • Operated in accordance with the Human Resources and Remuneration Committee Charter [6] .
• Completed an annual review of the Charter.
• Ensured clear accountabilities for culture and that systems to monitor it were in place.
• Ensured that the remuneration framework balances risk and return and promotes appropriate risk taking behaviours.
• Oversaw the implementation of key policies and practices in support of GPT’s remuneration and incentive framework.
• Sought independent external advice on market compensation benchmarks and practice, prevailing regulatory and
governance standards [7] .
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The number of securities to be issued under the security-based component of GPT’s STIC and LTI award is currently calculated with reference to the Quarter 4 (Q4), VWAP immediately preceding the commencement of the performance period i.e. 1 October 2018 to 31 December 2018.
Total Return is defined as the sum of the change in Net Tangible Assets (NTA) and distributions over the performance period, divided by the NTA at the beginning of the performance period.
TSR represents an investor’s return, calculated as the percentage difference between an initial amount invested in stapled securities and the final value of those stapled securities at the end of the relevant period, assuming distributions were reinvested.
Details of the 2017-19 LTI vesting outcome is set out in the 2019 Annual Financial Report available on GPT’s website, www.gpt.com.au.
Refer to footnote 1.
The Charter is available on GPT’s website (www.gpt.com.au).
During 2019, no remuneration recommendations in relation to Key Management Personnel, as defined by Division 1 of Part 1.2 of Chapter 1 of the Corporations Act 2001 , were made by these or other consultants.

Wollongong Central, Wollongong 31

GPT’s vision and financial goals linked to remuneration structures

GPT’S VISION & FINANCIAL GOALS

To be the most respected property company in Australia in the eyes of our Investors, Total Return > 8.5% People, Customers and Communities

Generate competitive Relative Generate competitive FFO Total Securityholder Return growth per security

TOTAL REMUNERATION COMPONENTS

BASE PAY (FIXED)

LONG TERM INCENTIVE (LTI) OTHER EMPLOYEE OWNERSHIP (VARIABLE) PLANS (VARIABLE)

SHORT TERM INCENTIVE COMPENSATION (STIC) (VARIABLE)

Base level of reward.

GESOP

Set around Australian market median • Discretionary, at risk, and with • Discretionary, at risk performance GESOP using external benchmark data. aggregate STIC funding aligned to rights, aligned to overall Group • Supplementary award for STIC
• Reviewed based on employee’s overall Group financial outcomes. financial outcomes. eligible individuals who are • Set around market median for ineligible for LTI.
Reviewed based on employee’s • Set around market median for
responsibilities, experience, skill and target performance with potential
performance. to achieve top quartile for stretch outcomes.
• External and internal stretch outcomes.
relativities considered.
Set around market median for target
target performance with potential performance with potential to achieve • Equal to 10% of STIC outcome (less to achieve top quartile for stretch outcomes. top quartile for stretch outcomes. tax) i.e. subject to same performance • Vesting determined by GPT criteria as STIC and delivered in GPT
• Determined by GPT and individual performance against Total Return and securities around the same time as performance against a mix of Relative TSR financial performance. the cash STIC payment. balanced scorecard measures which • Relative TSR is measured against
include financial and non-financial ASX200 AREIT Accumulation Index • Must be held for at least 1 year. measures. (including GPT).

BBESOP

Financial measures include FFO • Assessed over a 3 year performance • For individuals ineligible for STIC or LTI.
growth per security, and earnings at portfolio, fund and/or property level period, no re-testing. • GPT must achieve at least Target as relevant. • No value derived unless GPT meets outcome on annual FFO growth per
• Non-financial objectives focus on or exceeds defined performance security for the plan to operate. measures.
execution of strategy, delivery of • A grant of $1,000 worth of GPT key projects and developments, and • Delivered in GPT securities to align securities which must be held until the people and culture objectives. executive and securityholder interests. earlier of 3 years from the allocation
• Delivered in cash, or (for senior date or cessation of employment or $1,000 cash (less tax) at the election of
executives), a combination of 50% cash and 50% equity with deferred the individual. vesting for 1 year[1] .

ATTRACT, RETAIN, MOTIVATE AND REWARD HIGH CALIBRE EXECUTIVES TO DELIVER SUPERIOR PERFORMANCE BY PROVIDING:

Competitive rewards.
Opportunity to achieve incentives beyond base pay based on performance[2] .

ALIGN EXECUTIVE REWARDS TO GPT’S PERFORMANCE AND SECURITYHOLDER INTERESTS BY:

Assessing incentives against financial and non-financial business measures that are aligned with GPT strategy.
Delivering a meaningful component of executive remuneration in the form of equity subject to performance hurdles being achieved.
Enabling the Board to modify remuneration outcomes as a result of adverse circumstances becoming known post the granting, payment or vesting under the STIC or LTI schemes[3] .

Where deferred securities are awarded, the number allocated is determined by dividing 50% of the value of the total STIC by the Q4, VWAP immediately preceding the commencement of the performance period. The value of the award on the conversion date may vary as a result of security price having increased or decreased since that point in time.

Eligibility to participate in the STIC, LTI, GESOP and BBESOP schemes is generally limited to individuals who are employed on a permanent basis, satisfy the minimum service criteria applicable under each scheme, have not given or received notice of cessation of employment and are not subject to any formal performance management process.

All GPT employees who participate in STIC and LTI are subject to these awards being clawed back if the recipient has acted fraudulently, dishonestly, or where there has been a material misstatement or omission in the Group’s financial statements leading to the receipt of an unfair benefit.

Reported remuneration – Executive KMP – AIFRS Accounting[1]

Executive KMP	Fixed Pay Base pay Superannuation $1,418,885 $20,767 $1,520,636 $20,290	Variable or “At Risk” Other STIC LTI2 Total
Bob Johnston Chief Executive Ofcer and Managing Director 2019 2018		$8,455 $1,302,460 $1,038,467 $3,789,034 $8,354 $1,210,570 $1,168,869 $3,928,719
Anastasia Clarke Chief Financial Ofcer 2019 2018	$860,899 $20,767 $794,923 $20,290	$4,985 $658,420 $405,098 $1,950,169 $5,275 $548,232 $414,417 $1,783,137
Mark Fookes Chief Operating Ofcer 2019 2018	$827,474 $20,767 $825,109 $20,290 $3,107,258 $62,301 $3,140,668 $60,870	$10,050 $636,642 $419,781 $1,914,714 $10,585 $559,068 $467,160 $1,882,212
Total 2019 2018		$23,490 $2,597,522 $1,863,346 $7,653,917 $24,214 $2,317,870 $2,050,446 $7,594,068

Reported remuneration – Non-Executive Directors – AIFRS accounting[3,4]

Non-Executive Director – Current	Fixed Pay Salary & fees Superannuation Other5 Total
Vickki McFadden6 Chairman 2019 2018	$409,233 $20,767 – $430,000 $289,851 $16,481 – $306,332
Tracey Horton7 2019 2018	$132,695 $12,606 – $145,301 – – – –
Swe Guan Lim8 2019 2018	$189,041 $17,959 $507 $207,507 $186,000 $17,670 $908 $204,578
Mark Menhinnitt9 2019 2018	$38,813 $3,687 – $42,500 – – – –
Angus McNaughton10 2019 2018	$192,124 $18,252 – $210,376 $27,917 $2,652 – $30,569
Michelle Somerville 2019 2018	$207,306 $19,694 – $227,000 $204,500 $19,428 – $223,928
Gene Tilbrook 2019 2018	$197,750 $18,786 $1,377 $217,913 $183,000 $17,385 $1,103 $201,488
Non-Executive Director – Former
Rob Ferguson11 2019 2018	– – – – $137,949 $8,617 – $146,566
Brendan Crotty12 2019 2018	– – – – $159,292 $15,133 – $174,425
Eileen Doyle13 2019 2018	$76,843 $7,300 – $84,143 $214,596 $20,094 – $234,690
Total 2019 2018	$1,443,805 $119,051 $1,884 $1,564,740 $1,403,105 $117,460 $2,011 $1,522,576

This is an extract from the Remuneration Report contained in the 2019 Annual Financial Report which is available online at www.gpt.com.au.

This table provides a breakdown of remuneration for executive KMP in accordance with statutory requirements and Australian accounting standards.
This column records the amount of the fair value of performance rights under the various LTI plans expensed in the relevant financial years, and does not represent actual LTI awards made to executives or the face value grant method.
This table provides a breakdown of remuneration for Non-Executive Directors in accordance with statutory requirements and Australian accounting standards.
No termination benefits were paid during the financial year.
Other may include death and total/permanent disability insurance premiums and/or GPT superannuation plan administration fees.

Ms McFadden joined GPT on 1 March 2018 and was appointed Chairman of GPT from 3 May 2018.

Ms Horton joined GPT on 1 May 2019, and was appointed Chairman of the Human Resources and Remuneration Committee from 16 May 2019.
Mr Lim retired from the GPT Board on 31 December 2019.
Mr Menhinnitt joined GPT on 1 October 2019.
Mr McNaughton joined GPT on 1 November 2018.
Mr Ferguson retired from the GPT Board on 2 May 2018.
Mr Crotty retired from the GPT Board on 8 November 2018.
Ms Doyle retired from the GPT Board on 15 May 2019.

Financial Summary

Financial Summary
For the year ended	31 Dec 19 $M 31 Dec 18 $M Change %
Retail – Operations net income – Development net income Ofce – Operations net income – Development net income Logistics – Operations net income – Development net income Funds management net income Corporate management expenses Net fnance costs Income tax expense Funds from Operations (FFO) Other non-FFO items: Valuation increase Financial instruments mark to market and net foreign exchange loss Other items1 Net proft for the year after tax FFO per ordinary stapled security (cents) Funds from Operations (FFO) Maintenance capex Lease incentives Adjusted Funds from Operations (AFFO) Distribution paid and payable Distribution per ordinary stapled security (cents)	321.6 318.6 0.9% 4.4 7.6 (42.1%)
	326.0 326.2 (0.1%) 275.3 267.7 2.8% 1.0 1.0 –
	276.3 268.7 2.8% 120.9 104.8 15.4% 0.1 5.1 (98.0%)
	121.0 109.9 10.1% 46.3 42.6 8.7% (35.3) (34.2) 3.2% (108.0) (124.4) (13.2%) (12.6) (14.2) (11.3%)
	613.7 574.6 6.8%
	342.2 910.7 (62.4%) (82.7) (39.6) 108.8% 6.8 6.0 13.3%
	880.0 1,451.7 (39.4%)
	32.68 31.84 2.6% 613.7 574.6 6.8% (55.2) (53.2) 3.7% (61.0) (60.9) 0.2%
	497.5 460.5 8.0%
	514.3 459.5 11.9% 26.48 25.46 4.0%

Other items include net impairment expenses/reversals, amortisation of intangibles, AASB16 Leases non-FFO adjustment and related tax impact.

As at 31 Dec 19	As at 31 Dec 18		Change
Total assets ($m) 15,867.8	14,778.0		7.4%
Total borrowings ($m) 3,897.5	4,114.9	q	5.3%
NTA per security ($) 5.80	5.58		3.9%
Net gearing (%) 22.1	26.3	q	420 bps
Net look through gearing (%) 24.8	29.0	q	420 bps
Weighted average term to maturity of debt (years) 7.7	6.3		1.4
Credit ratings (S&P/Moody's) A stable/A2 stable	A stable/A2 stable	Unchanged
Weighted average term of interest rate hedging (years) 4.0	4.4	q	0.4

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Casuarina Square, Darwin
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Five Year Financial Performance Summary

	2019	2018	2017	2016	2015
Total Securityholder Return (TSR) (%)	9.6	9.6	6.6	10.1	15.4
Total Return (%)	8.7	15.8	15.2	15.5	11.5
NTA (per security) ($)	5.80	5.58	5.04	4.59	4.17
FFO (per security) (cents)	32.68	31.84	30.77	29.88	28.28
Security price at end of calendar year ($)	5.60	5.34	5.11	5.03	4.78

This is an extract from the Financial Results contained in the 2019 Annual Financial Report. The 2019 Annual Financial Report is available upon request or online at www.gpt.com.au.

Securityholder Information

For full details of GPT’s recent announcements, activities and Annual Result information, visit the GPT website, www.gpt.com.au. To access information about your holding in GPT online, visit GPT’s Registry website https://investorcentre.linkmarketservices.com.au.

Access Your Investment Online

You can access your investment online at

www.linkmarketservices.com.au, signing in using your SRN/HIN, Surname and Postcode. Functions available include updating your address details, downloading a PDF of your Annual Tax Statement and collecting FATCA/CRS self certification.

Also online at www.linkmarketservices.com.au are regularly requested forms relating to payment instructions, name corrections and changes and deceased estate packs.

For assistance with altering any of your investment details, please phone the GPT Registry on 1800 025 095 (free call within Australia) or +61 1800 025 095 (outside Australia)

Receive Securityholder Updates Electronically

Sustainability is core to GPT’s vision and values. As part of our sustainability initiatives we would like to offer you the opportunity to receive notification of GPT’s investor communications electronically, including the 2019 Annual Financial Report and this Annual Review.

2019 Annual Financial Report

A copy of GPT’s 2019 Annual Financial Report is available to all securityholders upon request. The report can also be viewed online at www.gpt.com.au.

Stock Exchange Listings

GPT is listed on Australian Securities Exchange (ASX) in Australia under listing code GPT.

For more information

CONTACT US

P: +61 2 8239 3555 E: [email protected] Level 51, MLC Centre, 19 Martin Place Sydney NSW 2000

www.gpt.com.au

CONTACT GPT’S REGISTRY

We encourage securityholders to visit www.gpt.com.au to view the online versions of these reports.

As an investor opting to receive your securityholder updates electronically, you will benefit by receiving prompt information and have the convenience and security associated with electronic delivery. There are also significant cost savings associated with this method of communication and above all this is a responsible and environmentally friendly option.

Link Market Services

P: 1800 025 095 (free call within Australia) or +61 1800 025 095 (outside Australia) Locked Bag A14 Sydney South NSW 1235

www.linkmarketservices.com.au

To receive your investor communications electronically, please go to www.linkmarketservices.com.au and register for online services.

Distribution Policy and Payments

GPT has a distribution policy in place that effectively aligns the Group’s capital management framework with its business strategy, which reflects a sustainable distribution level to ensure a prudent approach to managing the Group’s gearing through market and economic cycles.

GPT makes distribution payments to securityholders two times a year, for the six months ended 30 June and the six months ended 31 December. GPT declares and pays its distribution in Australian dollars.

Corporate Directory

The GPT Group

Comprising:

GPT Management Holdings Limited ACN 113 510 188 and

GPT RE Limited ACN 107 426 504 AFSL 286511

Registered Office

Level 51 MLC Centre 19 Martin Place Sydney NSW 2000 Telephone: +61 2 8239 3555 Facsimile: +61 2 9225 9318

As Responsible Entity for General Property Trust ARSN 090 110 357

Board of Directors

Vickki McFadden (Chairman) Bob Johnston Gene Tilbrook Lim Swe Guan[1] Michelle Somerville Angus McNaughton Tracey Horton AO Mark Menhinnitt

Company Secretaries

James Coyne Lisa Bau Telephone: +61 2 8239 3555 Facsimile: +61 2 9225 9318

Nomination Committee

Vickki McFadden (Chairman) Bob Johnston Gene Tilbrook Lim Swe Guan[1] Michelle Somerville Angus McNaughton Tracey Horton AO Mark Menhinnitt

Human Resources and Remuneration Committee

Tracey Horton AO (Chairman) Gene Tilbrook Lim Swe Guan[1] Angus McNaughton

Audit Committee

Michelle Somerville (Chairman) Gene Tilbrook Lim Swe Guan[1] Angus McNaughton

Sustainability and Risk Committee

Gene Tilbrook (Chairman) Michelle Somerville Tracey Horton AO Mark Menhinnitt

Auditors

PricewaterhouseCoopers One International Towers Sydney, Watermans Quay, Barangaroo Sydney NSW 2000

Principal Registry

Link Market Services GPT Security Registrar Locked Bag A14 Sydney South NSW 1235

Within Australia: 1800 025 095 (free call) Outside Australia: +61 1800 025 095 Fax: +61 2 9287 0303 Email: [email protected] Website: www.linkmarketservices.com.au

Stock Exchange Quotation

GPT is listed on Australian Securities Exchange under ASX Listing Code GPT.

Retired as a Director 31 December 2019.

2 Southbank Boulevard, Melbourne

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AI assistant

GPT GROUP — Annual Report 2019

65009_rns_2020-03-26_27080de7-0590-4c89-8347-262b9e0447eb.pdf

27 March 2020

2019 Annual Review

About this report

AGM information

Investor calendar

Contents

The GPT Group

Office Portfolio

Logistics Portfolio

Retail Portfolio

2019 Annual Result

Corporate Governance & Board Renewal

Climate Change & Sustainability

Safety at GPT

Diversity & Inclusion

2020 Outlook

Financial Performance

Well-Diversified Sources of Drawn Debt

GPT Portfolio Diversity[1]

Office Portfolio

GPT’s office portfolio comprises ownership in 24 high quality assets across the three major capital cities on the eastern seaboard of Australia.

Top Ten Tenants[4] AS AT 31 DECEMBER 2019

Office Developments

32 Smith Street Parramatta

Cockle Bay Park Sydney

300 Lonsdale Street Melbourne

Logistics Portfolio

GPT’s logistics portfolio consists of ownership in 35 high quality logistics and business park assets.

Logistics Developments

>[$] 1bn

COMPLETED IN 2019

50 Old Wallgrove Road, Eastern Creek

21 Shiny Drive, Truganina

PROJECTS UNDERWAY

Wembley Business Park (2 Ironbank Close), Berrinba

Wembley Business Park (30 Ironbank Close), Berrinba

128 Andrews Road, Penrith

38A Pine Road, Yennora

Retail Portfolio

GPT is a leading owner, manager and developer of Australian retail property.

$ 11,667 SPECIALTY SALES PRODUCTIVITY ($PSM)

Retail Developments

Melbourne Central

Rouse Hill Town Centre

Funds Management

GPT Wholesale Office Fund Development Opportunities

Queen & Collins Streets Melbourne

51 Flinders Lane Melbourne

GWOF Development Pipeline

Sustainability

Our Environment

Climate Change and Energy

Water

KEY ACHIEVEMENTS IN 2018 INCLUDED:

Waste and Resource Management

KEY ACHIEVEMENTS IN 2019 INCLUDED:

Sustainability in GPT’s Portfolio

People & Community

Social Sustainability at GPT

2019 Key Activities

Diversity & Inclusion

Stretch Reconciliation Action Plan

GPT Foundation

Our Suppliers

Our Customers

Modern Slavery Response

Customer Focus

GPT’s Values and Culture

Board of Directors

Vickki McFadden CHAIRMAN

Bob Johnston CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR

Dr Eileen Doyle NON-EXECUTIVE DIRECTOR (RETIRED IN MAY 2019)

Swe Guan Lim NON-EXECUTIVE DIRECTOR (RETIRED DECEMBER 2019)

Michelle Somerville NON-EXECUTIVE DIRECTOR

Gene Tilbrook NON-EXECUTIVE DIRECTOR

NON-EXECUTIVE DIRECTOR Angus McNaughton

Mark Menhinnitt NON-EXECUTIVE DIRECTOR

GPT GROUP Annual Report 2019