GPT GROUP — Interim / Quarterly Report 2018

Oct 23, 2018

24 October 2018

September Quarter Operational Update

The GPT Group (“GPT” or “Group”) today announced its operational update for the September 2018 quarter, and upgraded 2018 guidance for FFO per security growth and Distribution per security growth to 3.5 per cent for the full year 2018.

Key Operational Highlights

• Total Office leases of 36,017 sqm signed during the quarter, and occupancy of 97.5 per cent (96.6 per cent at 30 June 2018)

• Acquired Eclipse Tower at 60 Station Street, Parramatta, for $277.6 million, reflecting an initial yield of 5.34 per cent

• Total Centre comparable MAT growth of 3.4 per cent (2.3 per cent at 30 June 2018)

• Combined Retail Specialty comparable MAT growth of 5.4 per cent (4.4 per cent at 30 June 2018)

• Retail specialty sales of $11,495 per square metre (psqm) at 30 September ($11,404 psqm at 30 June 2018)

• Total Logistics leases of 66,776 sqm signed during the quarter, and occupancy of 96.7 per cent (96.6 per cent at 30 June 2018)

• GPT issued a $200 million 6 year medium term note at a margin of 133 basis points over 3 month BBSW

• GPT Wholesale Office Fund (GWOF) priced a US$250 million (A$351 million) US Private Placement (USPP) debt issue for an average term of 14 years at a margin of 167 basis points over 3 month BBSW

Commenting on the successful debt capital markets issuance by the Group and GWOF during the period, GPT’s Chief Financial Officer, Anastasia Clarke, noted the success of both transactions is testament to the high credit quality of both GPT and GWOF, with the GWOF issue 10 times oversubscribed.

GPT’s Chief Executive Officer, Bob Johnston, said the Group was pleased to announce an upgrade to guidance for 2018, now forecasting to deliver FFO per security growth and Distribution per security growth of 3.5 per cent for the full year.

“The upgrade to our guidance reflects the additional income arising from our recent purchase of the Eclipse office tower, and the stronger contribution from the Office and Logistics portfolio,” said Mr Johnston.

“The investment portfolio has continued to perform well, with occupancy remaining high. The Group has made good progress on our new Sydney Logistics developments, with Huntingwood 1B completed and fully leased, and terms agreed over half of the building at Eastern Creek.”

-ENDS-

For more information, please contact:

INVESTORS	MEDIA
Brett Ward	Julia Clarke
Head of Investor Relations & Corporate Affairs	Group Media Manager
+61 437 994 451	+61 415 661 128

www.gpt.com.au

QUARTERLY MARKET UPDATE

Comparable Annual Retail Sales Growth by Category

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Portfolio MAT Growth by Category
3.4%
16.8%
Total Centre MAT 14.9%
Growth
10.8%
10.1%
7.6%
5.4%
4.1%
3.4% 3.5%
5.4% 0.3%
-0.4%
Combined Specialty -2.3% -2.4% -2.4%
MAT Growth -4.0%
-7.8%
$
11,495
Specialty Sales
per sqm [1]
(up 3.7%)
1. Specialties <400sqm Excludes development impacted centres - Sunshine Plaza, Macarthur Square and Wollongong Central.
Total centre Dept Stores DDS Supermarkets Cinemas Total Specialties Tech & Appliances General Retail Leisure Homewares Health & Beauty Food Retail Dining Fashion,Footwear&Accessories Retail Services Jewellery
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GPT September Quarter 2018 Market Update

Monthly Retail Sales Growth

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Combined Specialty Sales
6 month growth: 5.8% 6 month growth: 5.5%
3 month growth: 5.5%
8.1% 8.0% 8.0%
7.2%
7.0%
6.8%
5.5%
5.3%
4.4%
4.1%
2.4%
1.9%
0.8%
Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18
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Excludes development impacted centres (Sunshine Plaza, Macarthur Square and Wollongong Central) and assets sold in the period to calculate comparable quarterly and six month growth data to 30 September 2018

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GPT September Quarter 2018 Market Update

Retail Portfolio Sales Performance by Centre

	Ownership	Centre MAT ($m)	Comparable Centre MAT Growth	Comparable Specialty MAT Growth	Comparable Combined MAT Growth1	Specialty MAT ($psm)	Specialty Occupancy Cost
GPT PORTFOLIO
Casuarina Square	50%	372.1	-8.3%	-7.5%	-7.2%	9,954	17.8%
Charlestown Square	100%	579.4	4.0%	2.9%	3.8%	12,634	14.3%
Highpoint Shopping Centre	16.7%	1,023.0	3.8%	2.9%	5.1%	11,354	18.9%
Melbourne Central Retail	100%	571.1	12.6%	7.3%	16.1%	13,286	18.0%
Rouse Hill Town Centre	100%	447.0	2.5%	7.6%	4.1%	9,267	14.3%
Westfield Penrith	50%	651.5	0.7%	0.7%	1.0%	12,149	18.5%
GWSCF PORTFOLIO
Casuarina Square	50%	372.1	-8.3%	-7.5%	-7.2%	9,954	17.8%
Chirnside Park	100%	282.0	3.2%	3.8%	3.2%	12,217	15.4%
Highpoint Shopping Centre	83.3%	1,023.0	3.8%	2.9%	5.1%	11,354	18.9%
Northland Shopping Centre	50%	529.2	-0.9%	-4.2%	-2.5%	9,052	18.7%
Norton Plaza	100%	116.4	-4.5%	-4.6%	-5.9%	11,572	14.9%
Parkmore Shopping Centre	100%	263.3	2.2%	5.7%	5.6%	9,688	14.6%
GPT Weighted Total		2,842.2	3.4%	3.3%	5.4%	11,495	16.8%

Note: All data excludes development impacted centres - Sunshine Plaza, Macarthur Square and Wollongong Central. 1. Includes Specialty and Mini-Majors tenants

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GPT September Quarter 2018 Market Update

Office & Logistics Leasing

Office Portfolio

• −During the quarter a total of 36,017sqm of signed leases were completed

• −Signed leases for the year to 30 September 2018 of 89,310sqm with an additional 39,117sqm at Heads of Agreement (HoA)

• −Practical completion reached at 4 Murray Rose, Sydney Olympic Park, in early October

Logistics Portfolio

• −During the quarter a total of 66,776sqm of signed leases were completed −Signed leases for the year to 30 September 2018 of 116,320sqm with an additional 47,933sqm¹ at HoA −Practical completion reached at 1B, Huntingwood in late August

97.5% Office Occupancy 96.7% Logistics Occupancy

	3Q Leasing Summary	Tenant	Status	Area	Term
	OFFICE
	One One One Eagle Street,Brisbane	Gadens	Signed	5,728	2years
	LibertyPlace,Sydney	WeWork	Signed	4,433	12years
	Riverside Centre,Brisbane	DWF	Signed	2,082	4 / 7years
	2 Park Street,Sydney	Turks Legal	Signed	1,903	7years
	All other leases signed during theperiod		Signed	21,870	5.5years
	2 Southbank Boulevard,Melbourne	Confidential	HoA	9,554	5 / 10years
	2 Southbank Boulevard,Melbourne	Confidential	HoA	3,612	3years
	LOGISTICS
	38 Pine Road,Yennora	DB Schenker	Signed	33,198	Confidential
	1B Huntingwood Drive,Huntingwood,Sydney	Cahill Transport	Signed	11,306	5years
	7 Figtree Drive,SydneyOlympic Park	BSA	Signed	3,457	2years
	Lot 21,Old Wallgrove Road,Eastern Creek,Sydney¹	Confidential	HoA	15,026	8years
	Citiwest Business Park,Altona North,Melbourne	Confidential	HoA	6,870	3.4years
	6 Herb Elliot Avenue,SydneyOlympic Park,Sydney	Confidential	HoA	4,148	3years

¹ Eastern Creek Lot 21 is under development, included in portfolio total

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GPT September Quarter 2018 Market Update

Eclipse - 60 Station Street, Parramatta

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Acquisition Summary

• • Acquired for $277.6 million
• • Initial yield of 5.34%
• • 100% occupied by Deloitte, QBE and Government Property NSW
• • WALE of 4 Years (by income)
• • Located adjacent to Parramatta train station

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Key Statistics

Quality A Grade, built in 2012 Area 25,729m[2] (typical floorplate 1,323m[2] ) Levels 19 office levels Parking 145 car spaces, 158 bike racks Sustainability 5 Star NABERS Energy 4 Star NABERS Water 5 Star Green Star Rating

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GPT September Quarter 2018 Market Update

Funds Management

150 Collins Street

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GPT Wholesale Office Fund

GPT Wholesale Shopping Centre Fund

• GWOF achieved a total return of 15.0% for the 12 months to 30 September 2018

• GWOF priced a US$250 million (A$351 million) long-dated US Private Placement debt issue at an average margin of 167 basis points over 3 month BBSW, extending the Fund’s debt term

• The Fund has recorded a valuation uplift of $96.7 million as the whole portfolio was independently revalued at 30 September 2018.

• GWOF settled on the acquisition of 32 Flinders Street, Melbourne for $87.1 million

• GWSCF achieved a total return of 5.5% for the 12 months to 30 September 2018

• GWSCF has delivered a total return of 9.9% over the past two years following the acquisition of a further 25% interest in Highpoint in September 2017

• The repositioning of Northland with five international mini-majors is progressing well with the opening of TK Maxx, JD Sport, and H&M in 2018. Sephora and another international mini-major are programmed to open in the first half of 2019

• A sale campaign to divest Maribyrnong Homemaker Centre commenced in September 2018

Highpoint Shopping Centre

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GPT September Quarter 2018 Market Update