GPT GROUP — Annual Report 2020

Feb 14, 2021

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15 February 2021

2020 Annual Result Presentation

GPT provides its 2020 Annual Result Presentation which is authorised for release by the GPT Group Board.

-ENDS-

For more information, please contact:

INVESTORS MEDIA Penny Berger Grant Taylor Head of Investor Relations Communications Manager & Corporate Affairs +61 402 079 955 +61 403 772 123

www.gpt.com.au

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

15 February 2021

The GPT Group acknowledges the Traditional Custodians of the lands on which our business and assets operate, and recognises their ongoing connection to land, waters and community.

We pay our respects to First Nations Elders past, present and emerging.

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Artwork created by Molly Wallace

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2020 Year in Review | Bob Johnston Finance and Treasury | Anastasia Clarke Office and Logistics | Matthew Faddy Retail | Chris Barnett Funds Management | Nicholas Harris Outlook for 2021 | Bob Johnston

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2020 Year in Review

Portfolio Size and Geographic Exposure

High quality diversified Remain focused Pipeline of portfolio, integrated on growing our attractive management platform logistics portfolio developments and optimal capital providing organic structure positions us growth well for the recovery opportunities

• » Group delivered a creditable result despite an extraordinarily difficult operating environment

• Extended lockdown in Melbourne but recovery underway

• Office and Logistics net billings collection remained high

• Retail net billings collection improved materially in 2H 2020 as shopping centres re-opened

• Portfolio occupancy remains solid

• » Executing on strategy, with continued growth in Logistics achieved through development and acquisitions

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Office Retail
$5.6b NSW 50% $5.5b
VIC 38%
QLD 10%
NT 2%
Logistics
$3.0b
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• » Logistics development completions and acquisitions of ~$400m in 2020

• » Well positioned to benefit from the economic recovery

THE GPT GROUP | 2020 ANNUAL RESULT

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2020 Annual Result

Financial Summary

28.48cents 22.50cents Funds From Operations Distribution per security per security $ 5.57 -2.4% Net Tangible Assets Total Return[1] per security

Investment portfolio

Portfolio Assets under $ occupancy 98.4% management 24.4b Weighted average Weighted average lease expiry 4.7yrs capitalisation rate 4.95%

1. Total Return is defined as the change in Net Tangible Assets (NTA) per security plus distributions per security declared over the year, divided by the NTA per security at the beginning of the year

THE GPT GROUP | 2020 ANNUAL RESULT

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2020 Rent Collection and COVID-19 Waivers

• » Supported our customers to ensure our assets are well positioned for the recovery

• » 94% of net billings collected in 2020

• Office 98%, Logistics 100%, Retail 88%

» 86% of tenant deals agreed

f	dl d
Sector » 86% o tenan	Deals agreed Tenant rent waivers ($m)1 Provisions for receivables ($m)2 Total ($m) eas agree
Office	99% 6.5 5.0 11.5
Logistics	100% 0.2 0.1 0.3
Retail	83% 64.9 18.6 83.5
Total	86% 71.6 23.7 95.3

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1
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($24m)
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1. Rent waivers include $39m processed, $22m agreed and $11m estimated 2. Provisions relate to uncollected rent not waived for the 12 months to 31 December 2020

THE GPT GROUP | 2020 ANNUAL RESULT

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Investment Property Valuations

• » All assets independently revalued[1] as at 31 December 2020

• » Logistics portfolio valuation gains offset by further Retail portfolio valuation decline

• » Office portfolio valuation increased modestly in 2H 2020 supported by market transactions

• » Portfolio valuation movement flat for 2H 2020 and down 4.8% for the full year

• » Spread between discount rates and 10-year Australian Government bond yield greater than 500bps and well above the long-term average

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	Office	Logistics	Retail
2H 2020 Valuation Movement (6 months to 31 December 2020)	+0.5%	+6.5%	-3.6%
2020 Valuation Movement (12 months to 31 December 2020)	-1.2%	+9.3%	-13.7%
Capitalisation Rate	4.89%	4.84%	5.06%
31 December 2020	(+4bps since June 2020)	(-45bps since June 2020)	(+2bps since June 2020)
Discount Rate	6.19%	6.20%	6.33%
31 December 2020	(-13bps since June 2020)	(-19bps since June 2020)	(consistent with June 2020)
Key Changes to Valuation Assumptions	Incentives increased	Valuation metric compression	Market rents lowered
31 December 2020	240bps		2.30%

1. Excludes assets held for sale or acquired in the period

THE GPT GROUP | 2020 ANNUAL RESULT

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Sustainability

• » GPT accelerated its target for all managed assets to be certified as operating carbon neutral by the end of 2024

• » 100% of GWOF’s operational buildings certified carbon neutral in 2020 using the NABERS verification pathway of Climate Active for Buildings, in alignment with the International Greenhouse Gas Protocol

• » Ranked 2nd globally for real estate companies listed in the Dow Jones Sustainability Index

• » GPT and its Funds retained the maximum 5 star status as measured by GRESB for ESG management and performance

• » GPT Office Portfolio average NABERS Energy rating of 5.8 stars[1]

• » GPT Retail Portfolio average NABERS Energy rating of 4.4 stars[2]

• » Released inaugural Modern Slavery Statement

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100%

GWOF operational buildings certified carbon neutral

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Ranked 2nd

Globally in real estate Dow Jones Sustainability Index

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1. 5.8 stars with Green Power and 5.1 stars without Green Power 2. Without Green Power

THE GPT GROUP | 2020 ANNUAL RESULT

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Group Strategy

Our purpose is to create value for investors by providing high quality real estate spaces that enable people to excel and our customers and communities to prosper in a sustainable way

Strategic Priorities

• » Grow our high quality real estate portfolio through developments and acquisitions in Australia’s largest property markets

• » Exceed customer expectations by leveraging our extensive real estate skills to deliver leading asset management and sustainability performance

• » Increase capital allocation to Logistics through development and acquisition of quality assets in high demand locations

• » Extend our capital partnerships with investors through unlisted real estate funds and direct mandates to deliver attractive risk adjusted returns over the long term

Execution

• » Logistics portfolio growth from $1.9b to $3.0b over past two years

• » Worked closely with customers to manage through the COVID-19 pandemic while adjusting to meet their changing expectations

• » Attained industry leading Sustainability certification and recognition

• » Increased capital allocation to Logistics, now accounting for 21% of Group assets

• » Capital partnership with QuadReal Property Group for $800m Logistics portfolio

• » Sold 1 Farrer Place, providing further balance sheet capacity to pursue emerging growth opportunities

• » Maintain disciplined and prudent capital management

THE GPT GROUP | 2020 ANNUAL RESULT

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Finance and Treasury

Financial Summary

($m)	2020	2019	Change
Funds From Operations (FFO)	554.7	613.7	(9.6%)
Valuation (decreases)/increases	(712.5)	342.2
Treasury instruments marked to market	(52.2)	(82.7)
Other items	(3.1)	6.8
Net (Loss) / Profit After Tax	(213.1)	880.0
Funds From Operations per security (cents)	28.48	32.68	(12.9%)
Operating Cash Flow	490.2	614.6	(20.2%)
Free Cash Flow	438.3	498.1	(12.0%)
Distribution per security (cents)	22.50	26.48	(15.0%)

$ 554.7m

Funds From Operations

-$ 213.1m

Statutory net loss after tax

22.5cents

Distribution per security

THE GPT GROUP | 2020 ANNUAL RESULT

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Segment Result

($m)	2020	2019	Change	Comments
Retail	225.7	326.0	(30.8%)	Net property revenue reduced 28%; property cost savings 12.5%; COVID-19 rent impact of -$83.5m
Office	281.9	276.3	2.0%	Contribution from acquisition of Darling Park, offset by dilution in GPT’s co-ownership stake in GWOF; COVID-19 rent impact of -$11.5m
Logistics	139.4	121.0	15.2%	Contribution from acquisitions and developments fully leased on completion and increased occupancy; COVID-19 rent impact of -$0.3m
Funds Management	47.2	46.3	1.9%	Growth from GWOF acquisitions and developments, cost savings, partially offset by devaluations in GWSCF
Finance Costs	(102.7)	(108.0)	(4.9%)	Cost of debt 3.1%, saving 50bps on 2019
Corporate	(36.8)	(47.9)	(23.2%)	Bonus schemes cancelled, discretionary cost savings and JobKeeper received
Funds From Operations	554.7	613.7	(9.6%)
Maintenance capex	(32.0)	(55.2)	(42.0%)	Reduction and deferral of discretionary capex
Lease incentives	(59.0)	(61.0)	(3.3%)	Decrease due to lower leasing in Retail offset by successful leasing in Office and Logistics portfolio
Adjusted Funds From Operations	463.7	497.5	(6.8%)

THE GPT GROUP | 2020 ANNUAL RESULT

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Capital Management

• » Modest gearing of 23.2%

• » Liquidity of $1.8b which fully funds current commitments through to 2024

• » Issued $300m of 12 year domestic MTNs at a margin of 160bps

• » Issued ~A$200m equivalent HKD MTNs for an average 11 year term at an average margin of 173bps

• » Extended $1.4b of bank facilities by an average of 1.7 years

• » Average 63% hedged over the next 2.5 years

• » Cost of debt ~2.5% for 2021

» Cost of debt ~2.5% for 2021
Key Statistics	2020	2019
Net Tangible Assets per security1	$5.57	$5.80
Net Gearing	23.2%	22.1%
Weighted average cost of debt	3.1%	3.6%
Weighted average term to maturity	7.8 years	7.7 years
Interest cover ratio	6.4x	6.7x
Credit ratings (S&P/Moody’s)	A/A2	A/A2

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Domestic bank
debt
2%
Sources of Drawn Debt CPI Bonds Secured bank debt
2% 3%
As at 31 December 2020
Commercial
Paper
USPP 14%
41% Bank Debt
5%
Debt Capital
Markets Domestic
95% MTNs
26%
Debt Maturity Profile Foreign MTNs
As at 31 December 2020 12%
600
$
500 1.8b
400 Liquidity
300
200
100
0
1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
CPI Bonds US Private Placements Medium Term Notes Drawn Bank Facilities Undrawn Bank Facilities
$m
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THE GPT GROUP | 2020 ANNUAL RESULT

1. 2020 does not include 2H 2020 distribution of 13.2cps declared on 15 February 2021

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Office and Logistics

Office Overview

Portfolio Size and Geographic Exposure

99,600sqm 5.1years 98% Signed Leases Office WALE Net billings (by income) collected

Summary

• » Segment contribution of $281.9m up 2.0%, with fixed rent increases and portfolio composition changes partially offset by lower occupancy and COVID-19 rental assistance and provisions

• » Office occupancy of 94.9%[1]

• » Divestment of the Group’s interest in 1 Farrer Place, Sydney for 584.6m, in line with 30 June 2020 valuation

• » Office valuations broadly flat on June 2020, WACR of 4.89%

• » Development of 32 Smith in Parramatta achieved practical completion in January 2021, 70% leased including Heads of Agreement (HoA)

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Office Retail
$5.6b $5.5b
Sydney 54%
Melbourne 36%
Brisbane 10%
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Logistics $3.0b

THE GPT GROUP | 2020 ANNUAL RESULT

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1. Excludes assets under development

Office Valuations

• » All assets independently valued as at 31 December 2020, with WACR of 4.89%

• » Second half valuations broadly flat on June 2020

• Uplift driven primarily by metro assets 32 Smith and 4 Murray Rose Avenue

• Valuers have increased incentives, which were offset by a firming of discount rates

– Valuers have increased incentives, whic of discount rates	h were offset by a	firming
	Valuation
Office Portfolio (includes GWOF Equity Interest)	Movement ($m)	Change
6 months to 30 June 2020	-$105.0	-1.7%
6 months to 31 December 2020	+$31.2	+0.5%
Total 12 months	-$73.8	-1.2%

• » Divestment of 1 Farrer Place, Sydney (25% share) successfully completed

• Sale proceeds of $584.6m in line with 30 June 2020 valuation

• Achieved an average total return over the past 5 years of 12% per annum

THE GPT GROUP | 2020 ANNUAL RESULT

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Office Leasing

• » Achieved 99,600sqm of signed leases with additional 26,500sqm at HoA across operational portfolio and developments

• » Office Occupancy of 94.9%[1] and WALE of 5.1 years

• » Technology users remain active with 13 deals including Salesforce, ELMO Software and Empired

Leases concluded with key customers

Darling Park 1, Sydney	16,800sqm
8 Exhibition Street, Melbourne	14,900sqm
550 Bourke Street, Melbourne	6,800sqm
Melbourne Central Tower	6,700sqm
Darling Park 3, Sydney	5,900sqm

2020 Heads of Agreements by Quarter

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40,000 40
35
30,000 30
25
20,000 20
16
13
10,000 10
0 0
1Q 2020 2Q 2020 3Q 2020 4Q 2020
Area (sqm) Deal Count (#)
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1. Excludes assets under development

THE GPT GROUP | 2020 ANNUAL RESULT

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Office Development Completion

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70%
Committed [1]
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32 Smith, Parramatta

• » Achieved practical completion in January 2021

• » Leasing well progressed with 70% now committed[1]

• » Increased floor area achieved through approval of an additional mezzanine office floor, with a HoA in place

• » The 28-level tower features touch free access and lift controls, an Integrated Communications Network backbone adaptable for latest technologies and thermal heat mapping sensors

heat mapping sensors
32 Smith, Parramatta
Expected End Value	>$330m
Expected Yield on Cost	>6.4%
Office NLA	26,900sqm
Retail NLA	300sqm
Carparks	110
Sustainability	6 Star Green Star – Design rating achieved 6 Star NABERS Energy (with Green Power) rating targeted

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Includes HoA

THE GPT GROUP | 2020 ANNUAL RESULT

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Office Development Pipeline

• » Queen & Collins, Melbourne is progressing with completion in 2Q 2021

• » Progressing pipeline to take advantage of the next market cycle. Expected end value on completion in excess of $3.5b[1]

Project	Ownership	Lettable Area2
Queen & Collins Melbourne, VIC	100% GWOF	~35,000sqm	Office NLA ~20% leased including HoA
87-91 George Street Parramatta, NSW	100% GWOF	~30,000 to ~75,000sqm	Stage 1 DA being advanced
Cockle Bay Park Sydney, NSW	25% GPT / 50% GWOF	~73,000sqm	Stage 1 DA secured with Stage 2 DA submission 3Q 2021
Cnr of George & Bathurst Sydney, NSW	100% GWOF	~10,000sqm	Progressing scheme
300 Lonsdale Street Melbourne, VIC	100% GPT	~21,000sqm	Targeting pre-commitment tenants
51 Flinders Lane Melbourne, VIC	100% GWOF	~30,000sqm	DA approved in 2020, expected commencement 2022
Skygarden Brisbane, QLD	100% GWOF	~29,000sqm	Progressing scheme

1. Includes both GPT direct and Fund opportunities 2. Office and Retail area, subject to authority approvals

THE GPT GROUP | 2020 ANNUAL RESULT

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Future of Office | GPT View

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Hybrid Model

Anticipate large organisations continue to evolve to a hybrid model, with a portion of the working week at home

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Physical office to remain important

Socialisation aspects and face-to-face interaction increasingly important

Collaboration Innovation Learning Culture

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Vibrant CBDs

CBDs will remain predominant location for the majority of office occupiers

Flexibility

Increased demand for flexible space, including team and collaboration spaces

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Healthy Buildings and ESG Investments

Heightened focus on health and wellbeing, minimisation of environmental footprint

THE GPT GROUP | 2020 ANNUAL RESULT

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Customer Insights | GPT Response

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5
Space&Co.
Venues
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• » Proactively engaging with customers, responding to evolving flexibility requirements and focus on health, wellbeing and sustainability

• » Experienced team with track record in creating and managing space

Flexibility

Space&Co.

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• » Curated flexible on-demand spaces

• » Rapidly evolving with focus on collaboration and team rooms

• » High customer advocacy for the offer with ~50% of 2020 Space&Co. income from existing GPT tenants

Healthy Buildings and ESG Investments

Healthy Building Upgrades

• » Touch free lift and access enablement through smart phone app

Furnished Suites

• » Furnished and cabled office suites providing a “ready to move in” solution

• » Ideal for growing businesses and satellite offices

Lease Flexibility

• » Large occupiers looking for core and flex spaces

• » Short form lease, facilitating faster documentation and ease of use

• » Improved air quality through air filtration upgrades to MERV 14/15 (common in healthcare settings) and ultraviolet air purification

• » Piloted at 580 George Street, Sydney with wider roll-out underway

Investing in Sustainability

• » Carbon neutral certification achieved for all GWOF operational assets

• » NABERS Energy rating (with Green Power) of 5 stars or above for all assets[1]

• Excludes assets being held for development or under development/refurbishment

THE GPT GROUP | 2020 ANNUAL RESULT

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Office Market Outlook

• » Over the long term, prime assets have outperformed secondary assets, with higher net absorption and lower vacancy[1]

• » Prime assets expected to benefit as occupiers upgrade to assets that provide healthy, modern and technology enabled spaces

• » Expect to see divergence in performance of prime and secondary assets, with accelerated obsolescence of older product

• » Vacancy rates likely to remain elevated given new supply and potential sublease space

• » Continued investor demand for quality assets, with low interest rate environment and appetite for Australian real estate

Vacancy ↑

Effective Rents ↓ 2021 Outlook

Investor Demand – Prime ↔

Investor Demand – Secondary ↓

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Premium A Grade
63% 37%
GPT’s Office
Portfolio
100% Prime ²
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1. JLL Research, December 2002 – December 2020 2. By Value. Excludes assets held for development (32 Flinders Street and 87-91 George Street)

THE GPT GROUP | 2020 ANNUAL RESULT

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GPT’s Office Portfolio Resilience

• » 100% prime grade portfolio[1 ] across eastern seaboard in deepest office markets

• » Portfolio benefits from a diverse mix of high quality occupiers

• Majority financial and insurance institutions, global technology and professional services

• Collected 98% of net billings in 2020

• » As restrictions ease we expect to see accelerated return in Sydney and Melbourne, in line with trends in other markets

2021 Focus

Return to the Office[2]

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80% 80%
66% 68% 69%
63%
45%
31%
Melbourne Sydney CBD Brisbane CBD Perth CBD Canberra Adelaide CBD Hobart CBD Darwin CBD
CBD
Jul-20 Jan-21
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• » Focused on the present and positioning our portfolio of high quality assets for future growth

Safety, health and wellbeing of occupants

Customer engagement

Completing leasing transactions and maintaining high collection rates

Progressing our development projects

1. Excludes assets held for development (32 Flinders Street and 87-91 George Street)

THE GPT GROUP | 2020 ANNUAL RESULT

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1. Property Council of Australia. Level of occupancy in CBD office buildings based on responses from Property Council members who own or manage office buildings. January period reflects 27 January 2021 – 4 February 2021

Logistics Overview

Portfolio Size and Geographic Exposure

15.2% 99.8% 6.7 years Logistics Portfolio Logistics WALE FFO growth Occupancy (by income)

Summary

• » Segment contribution of $139.4m, with 100% of net billings collected and comparable income growth of 3.1%

• » Portfolio growth of 22% to $3.0b with 165,100sqm developed and acquired

• » Development pipeline with an expected end value of ~$1b[1]

• » Capital partnership established via GPT QuadReal Logistics Trust to jointly invest in development opportunities and acquisitions

• » Portfolio valuation uplift of $227.8m

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Office Retail
$5.6b $5.5b
Sydney 63%
Melbourne 28%
Brisbane 9%
Logistics
$3.0b
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1. Estimated end value on completion of underway and pipeline projects at GPT share

THE GPT GROUP | 2020 ANNUAL RESULT

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Logistics Leasing

• » Achieved signed leases of 185,500sqm plus 11,100sqm at Heads of Agreement (HoA) across operational portfolio and developments

• » High occupancy of 99.8% and WALE of 6.7 years

• » Average fixed rent increases of 3.2% across 93% of portfolio income

• » Quality customer base, more than 70% of income from ASX listed groups and multi-nationals[1]

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Transport, Postal & Warehousing Trade (Retail & Wholesale)
Toll Coles
Scott’s Refrigerated Australian Pharmaceutical
31%
Logistics Portfolio 30% Industries
TNT Super Retail Group
Income
Linfox Wesfarmers
DHL by Customer Industry Unilever
Type
Schenker
Other Manufacturing
12%
ACPE IVE Group
26%
TPG Telecom Pact Group
QBE Visy
Computershare Goodman Fielder
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1. By Income, multi-nationals inclusive of listed and unlisted groups

THE GPT GROUP | 2020 ANNUAL RESULT

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Logistics Portfolio Growth

~45% of investment portfolio created through GPT development pipeline[³]

• » Growth of $542.5m in 2020 to reach $3.0b

• » Acquired three assets for $202.2m

• » Delivered four developments with a value of $195.5m

• » Divested Yatala asset with net proceeds of $58.2m, achieving 12% premium[1]

• » Valuation uplift of 9.3%, with WACR firming from 5.40% to 4.84% in the 12 months

GPT Logistics Portfolio ²

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Investment Portfolio
Assets Under Development $3.0b
$2.4b
$1.9b
$1.5b
2017 2018 2019 2020
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1. Premium to Book Value at divestment date 2. As at 31 December of each year, includes Assets Held for Sale 3. By Value

THE GPT GROUP | 2020 ANNUAL RESULT

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Logistics Development Completions

• » Five development completions

• Four facilities delivered in 2020 totalling 90,000sqm

• Additional 17,100sqm facility delivered in February 2021

• » Introducing new high quality customers including Visy and DHL

• » GPT Logistics team have strong track record of delivering projects and securing leasing outcomes

					Yield on
	Suburb	State	Completion	Fair Value¹	Cost	Area	WALE by Income¹	Tenant
2 Ironbark Close	Berrinba	QLD	1H 2020	$57.0m	6.1%	20,600sqm	9.2 years	DHL
30 Ironbark Close	Berrinba	QLD	1H 2020	$31.3m	6.5%	14,400sqm	4.5 years	JB Hi-Fi and Windoware
38A Pine Road	Yennora	NSW	1H 2020	$13.6m	5.8%	4,800sqm	4.2 years	Westcon Group
128 Andrews Road	Penrith	NSW	2H 2020	$93.6m	5.4%	50,200sqm	9.7 years	Visy
2020 Completions				$195.5m	5.8%	90,000sqm	8.3 years
42 Cox Place	Glendenning	NSW	1H 2021	$44.4m²		17,100sqm		Negotiations advancing

1. As at 31 December 2020 2. Forecast end value

THE GPT GROUP | 2020 ANNUAL RESULT

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Logistics Developments Underway

• » Four developments are being progressed with an expected end value on completion of $158m[1,2]

• » Three projects to be undertaken on a speculative basis with terms agreed for a new development in Melbourne

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Artist’s impression
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Artist’s impression
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Wembley Business Park, Berrinba, QLD

$ 33m 16,300sqm Forecast End Value Forecast GLA

2H 2021

Forecast Completion

Metroplex Place, Wacol, QLD

$ 38m 17,100sqm Forecast End Value ¹ Forecast GLA

2H 2021

Forecast Completion

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Artist’s impression
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Artist’s impression
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Gateway Logistics Hub, Truganina, VIC

$ 39mm

39mm 24,000sqm Forecast End Value Forecast GLA 2H 2021 Stage 2 Forecast Project Stage Completion

Gateway Logistics Hub, Truganina, VIC

$ 48m 29,800sqm Forecast End Value Forecast GLA

2H 2021 Stage 3 Forecast Project Stage Completion

Confidential HoA[²] Tenant

1. End value at 100%, Metroplex Place to be held within GPT QuadReal Logistics Trust 2. Gateway Stage 3 project subject to execution of binding Agreement for Lease being concluded with pre-commitment tenant. HoA signed in January 2021

THE GPT GROUP | 2020 ANNUAL RESULT

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Logistics Development Pipeline

• » Development pipeline of ~$1b[1]

• » Added to land bank with two sites secured in Queensland and Victoria

• » Progressing estate in Kemps Creek (Yiribana Logistics Hub) in Western Sydney, with land rezoning achieved in June 2020

GPT Underway Pipeline Estimated End Expected Timing	GPT Underway Pipeline Estimated End Expected Timing	GPT Underway Pipeline Estimated End Expected Timing	GPT Underway Pipeline Estimated End Expected Timing	GPT Underway Pipeline Estimated End Expected Timing
Suburb State Ownership (sqm)² (sqm)³ Value ($m)¹	2021	2022	2023	2024+
Gateway Logistics Hub Truganina VIC 100% 53,800 61,600 $178
865 Boundary Road Truganina VIC 100% 128,200 $205
Foundation Estate Truganina VIC 100% 10,000 $19
Austrak Business Park Somerton VIC 50% 121,300 $100
Yiribana Logistics Hub Kemps Creek NSW 100% 160,000 $445
407 Pembroke Road Minto NSW 50% 19,500 $23
Wembley Business Park Berrinba QLD 100% 16,300 21,800 $75
Metroplex Place Wacol QLD 50% 17,100 $19
Development Pipeline 87,200 522,400 $1,064

1. Estimated end value on completion of underway and pipeline projects at GPT share. Net of stages completed prior to February 2021 2. Includes project subject to finalisation of lease with pre-commitment tenant 3. Lettable area subject to authority approvals

THE GPT GROUP | 2020 ANNUAL RESULT

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Logistics Acquisitions

• » Acquired investment assets for $202.2m in 2020 adding 75,100sqm to the portfolio

• » Foundation Estate acquired in December 2020 comprising three facilities plus adjoining development land, with a long WALE and quality tenants

• » 917 Boundary Road in Truganina acquired in February 2021

• Fund-through development acquired within the GPT QuadReal Logistics Trust

• Leased to HB Commerce for 10 years from completion in 1H 2022

– Leased to HB Commerce f	or 10 years from c	ompleti	on in 1H 202	2
				Purchase	Initial		WALE by
	Suburb	State	Acquisition	Price	Yield	Area	Income¹	Tenant
21-23 Wirraway Drive	Port Melbourne	VIC	1H 2020	$32.4m	4.9%	7,200sqm	5.0 years	Computershare
1 Botero Place	Truganina	VIC	1H 2020	$42.2m	4.8%	23,800sqm	9.4 years	DHL
Foundation Estate	Truganina	VIC	2H 2020	$127.6m	4.2%	44,100sqm	8.1 years	Laverton Cold Storage, Couriers Please, Victorian Freight Specialists, General Pants Co., Super Rack
2020 Acquisitions				$202.2m	4.4%	75,100sqm	7.8 years
917 Boundary Road (Fund-through)	Truganina	VIC	1H 2021	$137.1m²	4.1%	70,000sqm	10.0 years³	HB Commerce, trade via VidaXL brand

1. As at 31 December 2020 2. Purchase price at 100%, to be held within GPT QuadReal Logistics Trust 3. From forecast completion in 1H 2022

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Logistics Sector Outlook

Market Outlook

• » Continued strength in tenant demand with eastern seaboard take-up in 2020 32% above the 10 year average[1]

• » Low vacancy with Sydney 3.6%, Melbourne 2.4% and Brisbane 5.3%[2]

• » Investment metrics expected to continue to firm, supported by strong investor demand

• » Logistics outlook underpinned by:

GPT Portfolio Growth

• » Unlocking value through product creation

• Five facilities completed since January 2020

• Four underway developments expected to complete in 2H 2021

• Land bank of 122 hectares for future development[4]

• Pipeline inclusive of underway projects of ~$1b

• » Assessing acquisition opportunities in target markets

E-commerce acceleration

Australians spent ~$44.18b on online retail in 2020, up 44.4% on prior 12 month period[3]

• » Modern portfolio with low capital intensity and attractive cash-oncash yield

• » Long WALE assets attracting high quality customers in growth sectors

Supply chain sophistication

Retailers investing in optimising supply chains and logistics functions

Urbanisation

Concentration and growth of population centres supported by infrastructure investment

1. JLL Research, Q4 2020. Average of prior 10 year period 2010 - 2019 2. Urbis Industrial Vacancy Study, Q3 2020, stock >10,000sqm

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1. NAB Online Retail Sales Index. Comparison of 12 months to December 2020 against 12 months to December 2019 4. Includes land to settle in coming periods. Land area at 100%, includes 40 hectares held in joint ventures

Retail

Retail Overview

Portfolio Size and Geographic Exposure

98.0% 4.8% 95% Portfolio Nov and Dec 2020 Dec 2020 Customer occupancy Total Centre Sales Growth[1] Visitations vs. pcplevels

Summary

• » Segment contribution of $225.7m impacted by lower property income due to rental waivers and provisions

• » High net billings collection rate of 88% strengthened result in 2H 2020

• » Completion of 83% of COVID-19 rental arrangements

• » Valuation decline of 13.7% for the 12 months to 31 December 2020 and WACR of 5.06%

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Office Retail
$5.6b VIC 44% $5.5b
NSW 41%
QLD 10%
NT 5%
Logistics
$3.0b
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1. Excluding Melbourne Central and Travel Agencies. Comparison to pcp 2. Excluding Melbourne Central

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Retail Sales and Customer Insights

Sales Recovery in November and December 2020

• » Recovery evident across all states post easing of Government restrictions, particularly in the last two months of 2020 for Victoria

• » Customer visitations in December 2020 across portfolio at 95% of 2019 levels[1]

	Combined months	Combined months
	Nov and Dec	2020 (vs 2019)2
	Centre Sales Growth	Total Spec Sales Growth
NSW/NT	6.4%	5.5%
VIC	0.7%	0.3%
Portfolio	4.8%	4.1%

Insights – Retail Categories

• » A number of retail categories had sales growth in 2020[2] :

• Supermarkets (+5.6%), Discount Department Stores (+6.9%), Mini Major Technology (+22.2%) and Mini Major Leisure/Sports (+4.8%)

• » Several categories impacted by Government restrictions in 2020:

• Cinemas, Travel, Entertainment and Food Catering well placed for rebound in 2021

Portfolio Sales and Traffic Growth (Jul – Dec 2020)[3]

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Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
10.0%
0.0%
-10.0%
-20.0%
-30.0%
-40.0%
VIC Govt Restrictions
-50.0%
Total Centre Total Specialties
Total Centre ex VIC Total Specialties ex VIC
Traffic ex MC
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1. Excluding Melbourne Central 2. Excluding Melbourne Central and Travel Agencies 3. Comparison to pcp

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Retail Market Conditions

Retail Sales Recovery

• » ABS Retail Trade Growth tracking above historical averages

• » Growth led by Household Goods and a resurgence in Apparel

Consumer Confidence …. 10 Year High

• » Improved consumer confidence reaching 10 year high in December 2020

• » Robust jobs growth, house price appreciation and record low interest rates supporting sentiment and spending

• » Increased levels of household savings, sitting at its highest level in decades, provides additional capacity for further discretionary spending growth in 2021

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Retail Market Share

GPT Portfolio

• » Recovery in portfolio sales driven by both market growth and market share gains from online

• » Growth of online market share reduced from peak of 26% down to 16% in December 2020 as customers returned to normal shopping behaviours

Online Insights

• » Domestic omni-channel retailers, main beneficiaries of rapid growth in online through the COVID-19 period

• » Transactional data has shown omni-channel retailers with prominent “physical store networks” performed strongly through 2020

• » Customer research … reluctant shift to online during COVID-19 restrictions with an intention to return to previous shopping habits

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Retail Leasing Update

Achieving Structured Leases with Fixed Increases

• » Despite challenging conditions, retailer demand remained solid, 404 deals completed

• » Leasing deals reflect strategy of securing tenants and reducing holdovers

• » New leasing deals continue to have base rents with average annual fixed increases

• » COVID-19 rental assistance - agreements reached with 83% of retailers

	12 months to Dec 2020
Deals Completed	404
Portfolio Occupancy	98.0%
Retention Rate	72.2%
Average Annual Fixed Increase1,2	4.3%
Average Lease Term1,2	4.0 years
Leasing Spreads1,2	(14.1%)
Holdovers as % of Base Rent	7.7%

1. New leases 2. Specialties <400sqm

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Retail Valuations

• » All assets independently valued as at 31 December 2020

• » Revaluation movement in 2H 2020 of -$204.5m (-3.6%), predominantly driven by Melbourne Central (-8.8%)

• » WACR at 5.06% (+17bps yoy), no movement in capitalisation rates on valuations completed in second half

• » Stabilisation allowances in valuations reduced by half since June 2020, as trading recovers post COVID-19

6 months to Dec 2020 Valuation Movement

	Dec 2020 Valuation ($m)	($m)	Change
Rouse Hill Town Centre	$645.2	+$7.1	+1.1%
Charlestown Square	$874.5	+$8.5	+1.0%
Casuarina Square (50%)	$209.8	+$0.9	+0.4%
Westfield Penrith (50%)	$641.0	-$16.0	-2.4%
Highpoint (16.67%)	$350.0	-$11.7	-3.3%
Sunshine Plaza (50%)	$595.0	-$22.7	-3.7%
GWSCF (28.5%)	$759.3	-$29.9	-3.9%
Melbourne Central	$1,464.6	-$140.7	-8.8%
Total 6 months to Dec 2020		-$204.5	-3.6%
Total 12 months to Dec 2020		-$866.5	-13.7%

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Retail Portfolio Strategy and Outlook

Retail Themes

• » “Winning Retailers” are omni-channel with both online platforms and physical stores

• » Reduced customer demand for traditional anchors leading to re-purposing of space

• » Customer spending on technology, leisure, personal services, dining and experiences will continue

GPT is responding to shifts in customer demand by investing to evolve our assets

Evolving Asset Offers

• » Rightsizing/remixing anchor tenants David Jones, Myer, Target and Kmart at Highpoint and Rouse Hill

• » Over 550 new retail brands introduced across portfolio over past 5 years

• » Remixing to growth categories, upweighting to omni-channel platforms

• » Introduction of co-working facility ‘Waterman’ at Highpoint in 2022

• » Australia’s largest high ropes course opened at Sunshine Plaza

Investment In Shopping Experience

• » Recent investment to reposition Highpoint and Melbourne Central as leading retail experiences

• » Online delivery platforms - Retailer Runner

Mixed Use Development Opportunities

• » Securing long term mixed use rights for Highpoint

• » Mixed use development opportunities at Rouse Hill and Melbourne Central

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Funds Management

Funds Under Management

Funds Management

$ $ 12.9b 400m Assets under Logistics partnership management secured

$ 339m New equity raised in GWOF

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Capital Partnership

Logistics Trust

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GWSCF GWOF
$3.9b Office 70% $9.0b
Retail 30%
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GPT Wholesale Funds – GWOF and GWSCF

• » GPT QuadReal Logistics Trust is a strategic partnership between GPT and QuadReal Property Group[1]

• » Capital commitment of $800m in 50:50 partnership

• » Trust is unseeded - Prime logistics portfolio to be created via acquisition and development

• » At February 2021 ~20% of the initial target committed comprising:

• $137m fund-through at Truganina, Melbourne

• $38m speculative development at Wacol, Brisbane

• » GPT to provide Investment Management, Capital Transactions, Property Management and Development Management services

• » $339m of new equity via GWOF equity raising and DRP

• » Carbon Neutral certification achieved for all GWOF operating buildings, while both funds retained 5 star status in GRESB

• » George Street, Parramatta acquisition expanded GWOF development pipeline to ~$3b, with debt capacity of over $1b to fund future development and acquisition opportunities

• » GWSCF distributions expected to be reinstated in 2021

• » Next fund liquidity reviews:

• GWOF July 2026

• GWSCF March 2027

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1. Fully owned by British Colombia Investment Management Corporation

Outlook for 2021

Priorities for 2021

• » Continue to grow Logistics portfolio via acquisition and development capitalising on structural tailwinds

• » Further expand Funds Management platform, with initial focus on the QuadReal capital partnership

• » Strong customer engagement to secure and maximise income from our existing investment portfolio

• » Progress development pipeline opportunities to activate as dictated by market conditions

• » Maintain strong sustainability credentials and progress towards 2024 carbon neutral target

2021 Outlook

• » Well positioned to benefit from economic recovery

• » Given continued uncertainty in operating environment, no 2021 earnings or distribution guidance provided

• » Expect to provide 2021 earnings and distribution guidance with March 2021 Quarter Operational Update

• » On-market buy-back announced for up to 5% of securities on issue, while maintaining capacity to invest in strategic growth opportunities

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181 William and 550 Bourke Streets, Melbourne
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Questions

Disclaimer

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

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

You should note that returns from all investments may fluctuate and that past performance is not necessarily a guide to future performance. While every effort is made to provide accurate and complete information, The GPT Group does not represent or warrant that the information in this presentation is free from errors or omissions, is complete or is suitable for your intended use. In particular, no representation or warranty is given as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this presentation - such material is, by its nature, subject to significant uncertainties and contingencies. To the maximum extent permitted by law, The GPT Group, its related companies, officers, employees and agents will not be liable to you in any way for any loss, damage, cost or expense (whether direct or indirect) howsoever arising in connection with the contents of, or any errors or omissions in, this presentation. Information is stated as at 31 December 2020 unless otherwise indicated.

All values are expressed in Australian currency unless otherwise indicated.

Funds from Operations (FFO) is reported in the Segment Note disclosures which are included in the financial report of The GPT Group for the 12 months ended 31 December 2020. FFO is a financial measure that represents The GPT Group’s underlying and recurring earnings from its operations. This is determined by adjusting statutory net profit after tax under Australian Accounting Standards for certain items which are non-cash, unrealised or capital in nature. FFO has been determined based on guidelines established by the Property Council of Australia. A reconciliation of FFO to Statutory Profit is included in this presentation. Key statistics for the Retail and Office divisions include GPT Group’s weighted interest in the GPT Wholesale Shopping Centre Fund (GWSCF) and the GPT Wholesale Office Fund (GWOF) respectively.

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