GPT GROUP — Interim / Quarterly Report 2020

Aug 9, 2020

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10 August 2020

2020 Interim Result Presentation

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

-ENDS-

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

2020 Interim Result

Market Briefing 10 August 2020

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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

|Interim Result 2020
Agenda|Half Year Review | Bob Johnston
4
Financial Summary & Capital Management | Anastasia Clarke
9
Office & Logistics | Matthew Faddy
13
Retail | Chris Barnett
30
Funds Management, Sustainability & Outlook| Bob Johnston
36|
|---|---|
|||

January & February 2020

GPT maintained the strong momentum from 2019

• • Guidance for FFO per security (FFOps) & Distribution per security (DPS) growth of 3.5%
• • High quality diversified portfolio with capital allocation focused on growing our logistics portfolio and development pipeline expected to enhance returns and growth
• • Strong capital position and liquidity to fund growth initiatives

From March 2020

The operating environment became significantly more challenging

• • Guidance was withdrawn for FFOps and DPS growth
• • Health and safety of our people, our customers and our communities was paramount Increased safety measures to specifically address COVID-19
• • Amended distribution policy to align with free cash flow, targeting a payout ratio of 95 to 105 per cent
• • Prudent capital management and strong liquidity position further reinforced with deferral of development projects and non-essential capital expenditure
• • Implemented initiatives to reduce on-going operating costs
• • Engaged with industry bodies and the Government on the commercial tenancy ‘Code of Conduct’ and proactively engaged with tenants to begin negotiations

While we are dealing with the COVID-19 pandemic we are simultaneously preparing for the recovery and focused on the future

• • Our high quality diversified portfolio, integrated management platform and optimal capital structure positions us well for the future
• • Remain focused on growing our logistics portfolio
• • Pipeline of attractive development opportunities when market conditions improve

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The GPT Group 2020 Interim Result | 10 August 2020

2020 Interim Result

Financial Summary

$5.525.52

12.55CPS 9.30CPSCPS

CPS 9.30CPSCPS $5.525.52 (0.1)% FFO DISTRIBUTION NTA TOTAL PER SECURITY PER SECURITY PER SECURITY RETURN[1]

Investment Portfolio

Portfolio 98.1% occupancy Weighted Average 4.9 YRS Lease Expiry

Assets Under $ 24.5B Management Weighted Average 5.00% Capitalisation Rate

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The GPT Group 2020 Interim Result | 10 August 2020

Reviewing the Half Year

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Office

• 1 January + Positive fundamentals with low vacancy rates and manageable supply outlook

• to + Occupancy at 97.5% and 27,600sqm of

• mid-March leasing completed

• • Slowing in market rental growth rates anticipated
• • Good progress on 32 Smith Street
• • Attendance rates declined significantly as tenants implemented work-from-home arrangements

Mid-March

to

30 June

• • Increase in sub-lease space and tenant leasing decisions being delayed
• • 32 Smith Street remains on-track
• • Deferred 300 Lonsdale Street development

Logistics

• • Occupancy at 98.6% and 38,500sqm of leasing completed
• • Growing through acquisitions and development, completing 3 new facilities and acquiring 2 new assets
• • Low market vacancy rates and strong demand from occupiers and investors
• • Occupancy increased to 99.8% at 30 June + Progressing development pipeline with 2 projects underway
• • Early re-zoning of Kemps Creek precinct
• • Investment demand remains competitive

Retail

• • Positive retail sales momentum with Total Centre sales growth of 3.0% and Combined Specialty sales growth of 3.9% in the first two months of 2020
• • Specialty sales of $11,489psqm as at February 2020
• • Centre foot traffic in-line with prior year in January and February
• • Measures to contain the spread of COVID19 resulted in lower levels of foot traffic and a reduced number of stores trading
• • Developments at Rouse Hill and Melbourne Central deferred
• • Significant reduction in cashflow while negotiations underway
• • 91% of stores open in June

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The GPT Group 2020 Interim Result | 10 August 2020

COVID-19 Tenant Negotiations

• • Commercial tenancies Code of Conduct was legislated in each state and territory requiring landlords to provide rent relief to qualifying tenants impacted by COVID-19 for a period of up to six months
• • Relief has also been provided to certain tenants not eligible for assistance under the Code of Conduct materially impacted by COVID-19
• • Rent collection rates for Q2 averaged 67% with retail the most impacted with collections of 36%

• July collection rate of 81%

• • Tenant negotiations advanced – all deals are bespoke and on a case-by-case basis
• • Prudent approach taken on assumptions for rent waivers and provisioning for completed deals and deals yet to be finalised

Rent Collection	Office Logistics Retail Total 99% 100% 90% 95% 94% 98% 36% 67% 97% 99% 63% 81% Deals agreed1 Tenant rent waivers ($M)2 Provisions for receivables ($M)3 Total ($M) 50% $8.0 $1.6 $9.6 77% $0.8 $0.7 $1.5 26% $42.8 $32.7 $75.5 32% $51.6 $35.0 $86.6 2 3 $539m ($438m) $101m ($52m) ($35m) $13m
Quarter 1
Quarter 2
1H 2020
Sector
Office
Logistics
Retail
Total

1. As at 3 August for the managed portfolio

2. Total rent waivers include agreed deals and estimates for deals yet to be completed for the 6 months to 30 June

3. Provisions relate to uncollected rent not waived for the 6 months to 30 June

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The GPT Group 2020 Interim Result | 10 August 2020

Valuations & COVID-19 Impact

	Office	Logistics	Retail
Valuation change	-1.7%1	+2.3%	-10.5%1
Cap rates	+ Unchanged at 4.85%	+ Firmed by 11 basis points to 5.29%	+ Softened by 15 basis points to 5.04%
Discount rates	+ Firmed by 9 basis points to 6.32%	+ Firmed by 22 basis points to 6.39%	+ Firmed by 27 basis points to 6.35%
Market rents & growth rates	+ Market rents unchanged + 10-year average market rent growth reduced 40 basis points to 3.3%	+ Market rents unchanged + 10-year average market rent growth remains largely unchanged at 3.0%	+ Market rents lowered by 130 basis points + 10-year average market rent growth reduced 58 basis points to 2.74%
	+ Average incentive on current vacancy increased by
Leasing	400 basis points + Average downtime on current vacancy increased by	+ Allowances have been increased to account for short term leasing risk	+ Equivalent incentive increased by 600 basis points + Equivalent downtime increased by 2.2 months
	3.4 months
COVID-19 allowance	+ 0.2% of portfolio value	+ 0.1% of portfolio value	+ 1.7% of portfolio value

1. Reflects change in value of directly owned assets plus the change in equity value of the Group’s investment in the relevant wholesale fund.

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The GPT Group 2020 Interim Result | 10 August 2020

Finance & Treasury

Interim Result 2020

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Financial Summary

6 Months to 30 June ($ million)	2020	2019	Change
Funds From Operations (FFO) Valuation (decreases)/increases	244.5 (711.3)	295.9 130.8	(17.4%)
Treasury instruments marked to market	(51.5)	(82.3)
Other items Net (Loss) / Profit After Tax	(0.8) (519.1)	8.2 352.6
Funds From Operations (cents per security)	12.55	16.36	(23.3%)
Operating Cash Flow	204.1	272.0	(25.0%)
Free Cash Flow	182.0	205.9	(11.6%)
`
Distribution (cents per security)	9.30	13.11	(29.1%)

$ 519.1M

STATUTORY NET LOSS AFTER TAX

9.3 CENTS

DISTRIBUTION PER SECURITY

99.6%

OF FREE CASH FLOW

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The GPT Group 2020 Interim Result | 10 August 2020

Segment Result & Free Cash Flow

6 Months to 30 June ($ million) 2020 2019	Change Comments
Retail 79.2 157.3	(49.7%) Income & fees reduced 37%; property cost savings 13%; COVID rent impact of $75.5m
Office 139.9 138.7	0.9% Contribution from acquisition of Darling Park; offset by dilution in GPT’s co- ownership stake in GWOF; COVID rent impact of $9.6m
Logistics 64.4 57.1	12.8% Contribution from acquisitions and developments fully leased on completion
Funds Management 24.2 22.7	6.6% Growth from GWOF acquisitions and developments partially offset by devaluations in GWSCF
Finance Costs (49.1) (59.5)	(17.5%) Cost of debt 3.1%, saving 70bps on comparable 1H19
Corporate (14.1) (20.4)	(30.9%) Bonus schemes cancelled, discretionary cost savings and JobKeeper received
Funds From Operations 244.5 295.9	(17.4%)
Maintenance capex (18.5) (30.8)	(39.9%) Reduction and deferral of discretionary capex
Lease incentives (28.9) (23.0)	25.7% Increase due to successful leasing in Office and Logistics portfolio
Adjusted Funds From Operations 197.1 242.1	(18.6%)

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The GPT Group 2020 Interim Result | 10 August 2020

Capital Management

• • Modest gearing of 25.1%
• • Liquidity in excess of $1.2 billion which fully funds all current commitments until 2023
• • In February, issued $300 million 12-year debt in the domestic MTN market at margin of 160 basis points
• • Prior to COVID-19, extended $1.2 billion of bank facilities by an average of 1.5 years
• • Hedging at 86% over the next 12 months
• • S&P A (stable) and Moody’s A2 (stable) credit ratings

Key Statistics	Jun 2020	Dec 2019
Net tangible assets per security	$5.52	$5.80
Net gearing	25.1%	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	6.0x	6.7x
Credit ratings (S&P / Moody’s)	A / A2	A / A2

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Domestic
CPI bank
Bonds debt
Foreign
Sources of 2% 2% bank debt
Drawn 17% Secured
Debt USPP41% Bank Debt bank debt2%
As at 30 June 2020 21% Commercial
Debt Capital Paper
Markets 4%
79%
Domestic
MTNs
Foreign MTNs 25%
7%
Debt 600 $1.2b
liquidity
500
Maturity
Profile 400
As at 30 June 2020
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
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
CPI Bonds US Private Placements Medium Term Notes Drawn Bank Facilities Undrawn Bank Facilities
$ millions
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The GPT Group 2020 Interim Result | 10 August 2020

12

Office & Logistics

Interim Result 2020

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Office Highlights

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1.2% 97% 5.2
years
OPERATIONS RENT COLLECTED OFFICE WALE
NET INCOME 1H 2020 (BY INCOME)
GROWTH
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Key Highlights
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• • Operations Net Income of $139.4 million, with fixed rent increases and portfolio composition changes partially offset by lower occupancy and COVID-19 rental assistance and provisions
• • Office occupancy of 94.4%¹ and Office WALE of 5.2 years¹
• • Collection rates remain high, reflecting diversity and quality of customer base
• • Office valuations moderated by 1.7%, WACR of 4.85%

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Portfolio Size &
Geographic Exposure
Office Retail
$5.7bn
$6.1bn
Sydney 59%
Melbourne 32%
Brisbane 9%
Logistics
$2.6bn
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• • High quality, modern portfolio of new or recently refurbished assets, well placed to respond to evolving trends

• Excludes Queen & Collins (undergoing redevelopment), 32 Flinders Street (currently configured as a carpark) and 87-91 George Street (held for development)

Melbourne Central Tower

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The GPT Group 2020 Interim Result | 10 August 2020

Office Return to Workplace

• • Office assets remained open throughout the period, with some shared facilities within our assets closed in accordance with government directives
• • A range of measures have been employed across the business and asset operations to support our tenants in returning to the office, including:

• Increased cleaning frequency

• Air-conditioning systems maximising fresh air volumes

• Monitoring and management of lift capacities

• Wayfinding and introduction of social distancing signage

• • Working with customers to conclude temporary rental relief arrangements related to COVID-19

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COMMON AREA LIFT MONITORING ENTRY/EXIT HAND SANITISER CLEANING & MANAGEMENT MANAGEMENT STATIONS

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TENANCY CONCIERGE SOCIALLY END OF TRIP CLEANING SUPPORT & DISTANCED HYGIENE ASSISTANCE SEATING & MANAGEMENT

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LOBBY & VISITOR PARKING COVID-19 SUPPORTING MANAGEMENT AVAILABILITY CASE SIGNAGE MANAGEMENT & MATERIALS

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The GPT Group 2020 Interim Result | 10 August 2020

Office Leasing & Market Update

Office Leasing

1H 2020 Leasing:

• • Signed leases totalling 37,800sqm concluded with an additional 19,600sqm of Heads of Agreement (HoA)
• • Renewals concluded with McMillan Shakespeare, ShineWing and Salesforce

2H 2020 Leasing:

• • Conversion of 1H 2020 heads of agreement to signed leases of 15,600sqm
• • Heads of agreement of 27,100sqm in July 2020

Vacancy by Area	As at June 2020	Including July 2020 HoA¹
Uncommitted Vacancy²	5.6%	4.2%
Lease Expiry by Income	As at June 2020	Including July 2020 HoA¹
2020	2%	1%
2021²	10%	8%

Leasing Strategy:

• • Virtual marketing to showcase space without the need for physical inspection, including virtual reality

• Increased engagement with customers across the portfolio

• • Occupant user surveys to understand return to the office plans
• • Proactively focused on securing renewals, minimising downtime

Market Update

• • Increased vacancy with softer demand and new supply resulted in back-fill vacancy and increased levels of sublease space

Prime Vacancy	2Q 2020	10 year Average
Sydney CBD	7.0%	8.1%
Melbourne CBD	7.5%	6.2%
Brisbane CBD	11.0%	9.3%

Source: JLL Research

• • Recovery in job ads a forward indicator of demand

Daily SEEK Job Ads - Australia

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1. Includes heads of agreement post balance date 2. Excludes expected development completions of 32 Smith Street, Parramatta and Queen & Collins, Melbourne

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The GPT Group 2020 Interim Result | 10 August 2020

Office Customer Update

• • Diverse and high quality tenant base proving resilient, with strong rent collection rate of 97% for 1H 2020
• • Well managed, prime grade assets are best placed to support the safety, health and wellbeing of occupants with adaptable technology, building management and monitoring capabilities and experienced on-site teams

Office Income by Industry¹

Lift Movements²

(5 February 2020 = 100)

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Banking, 20% Information and
Communications Technology,
14%
Insurance, 14%
Co-working/Serviced
offices, 3%
Mining & Energy,
3%
Other, 7%
Legal, 12%
Government, 7%
Other Business Services, 9% Accounting & Finance, 10%
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Index
Sydney CBD (5 assets)
100 Melbourne CBD (4 assets)
90 Brisbane CBD (1 asset)
80
70
60
50
40
30
20
10
0
5 Feb 19 Feb 4 Mar 18 Mar 1 Apr 15 Apr 29 Apr 13 May 27 May 10 Jun 24 Jun 8 Jul 22 Jul
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1. Reflective of office tenants, including signed leases commencing after the balance date

2. Lift calls each Wednesday during period across 10 assets. Reduced lift car capacities implemented in mid-June

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The GPT Group 2020 Interim Result | 10 August 2020

Evolution of Office

• • High quality, adaptive workplaces will remain a relevant and important part of high performing businesses
• • Culture and collaboration are best fostered face-to-face in communal spaces
• • Office space design and agile working practices are likely to evolve with the need for physical distancing

Corporate Culture Fostered & enhanced together in shared spaces

3:1 people in favour of the office for personal growth 18-24 year olds are likely to prefer working in the office to help to learn, be seen, network and collaborate – Savills Office FiT Survey

Education & Learning Opportunities to gain knowledge, working with & near colleagues

89% believe office will remain a necessity for corporate organisations – Savills Office FiT Survey

Business Building & Innovation Creative & collaborative activities most effective & productive in faceto-face in groups

“Even with a highly distributed workforce, we’ll need a place to come together.”

• “Now we can design this space especially for these new ways of working.”

• - Scott Farquhar, Atlassian, in relation to new Sydney headquarters (AFR 25 June 2020)

Workspace Configuration Potential for space & usage changes with need for physical distancing

84% miss the social connection and face-toface interaction they get from their colleagues in the office – Bates Smart, Remote Working Survey

Flexibility & Hub/Spoke Increased work from home, use of ondemand space & potential for “distributed workforce”

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The GPT Group 2020 Interim Result | 10 August 2020

Sydney Metropolitan Office Update

• • Greater Western Sydney has the third largest economy in Australia and is forecast to grow to 3 million people by 2036[1]
• • Sydney Metropolitan Office markets are expected to benefit from occupiers considering hub/spoke model post COVID-19
• • Office portfolio is ~10%[2] weighted to Sydney Metropolitan markets, to be increased through development pipeline

87-91 GEORGE STREET

Development site acquired, funded through GWOF Potential for 30,000 – 75,000sqm tower

32 SMITH STREET

26,400sqm tower due for completion in January 2021 64% leased including terms agreed

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SYDNEY
CBD
PARRAMATTA
CBD
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4 MURRAY ROSE AVENUE Occupancy of 97.1% 75% occupied by NSW Government entities

60 STATION STREET Acquired in 2018

Blue chip occupiers including Deloitte & NSW Government Occupancy of 100%

1. Western Sydney University (https://www.westernsydney.edu.au/rcegws/rcegws/About/about_greater_western_sydney)

2. Inclusive of 32 Smith Street underway

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The GPT Group 2020 Interim Result | 10 August 2020

Office Development Pipeline

• • 32 Smith Street is progressing well and is due for completion in January 2021
• • Pipeline of development opportunities within the existing portfolio, progressing planning and approval processes
• • Expected end value of pipeline projects in excess of $3.5 billion¹

	Ownership	Status	Comment²
32 Smith Street Parramatta, NSW	100% GPT	Underway	64% leased including terms agreed, QBE anchoring with 51% of tower
Queen & Collins Melbourne, VIC	100% GWOF	Underway	Refurbishment including restoration of heritage aspects and creation of a distinctive ground floor plane
87-91 George Street Parramatta, NSW	100% GWOF	Pipeline	Site acquired in 1H 2020, with potential for ~30,000 – ~75,000sqm tower
Cockle Bay Park Sydney, NSW	25% GPT / 50% GWOF	Pipeline	Office comprising ~63,000sqm plus ~10,000sqm retail/entertainment precinct
Cnr of George & Bathurst Sydney, NSW	100% GWOF	Pipeline	Adjacent to 580 George Street, potential for ~6,500sqm office extension above existing retail
300 Lonsdale Street Melbourne, VIC	100% GPT	Pipeline	Above Melbourne Central, potential for ~20,000sqm of office space
51 Flinders Lane Melbourne, VIC	100% GWOF	Pipeline	Adjacent to 8 Exhibition Street, potential for ~29,000sqm tower
Skygarden Brisbane, QLD	100% GWOF	Pipeline	Adjacent to Riverside Centre, potential for ~25,000sqm tower

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Artists impression
Cockle Bay Park, Sydney 32 Smith Street, Parramatta
Artists impression Artists impression Artists impression
Queen & Collins, Melbourne 87-91 George Street, Parramatta 300 Lonsdale Street, Melbourne
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1. Includes both GPT direct and Fund opportunities

2. NLAs are subject to authority approvals.

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The GPT Group 2020 Interim Result | 10 August 2020

Office Portfolio Resilience

5.2 100% years OFFICE WALE PRIME ASSETS¹ (BY INCOME)

• • GPT’s portfolio is made up of prime assets attractive to high-quality customers
• • Prime grade assets have benefited from lower vacancy and higher rates of net absorption over the long term
• • Office WALE >5 years, with a diverse customer base including Government, major Banks and Insurance companies, and global business such as Amazon
• • New and recently upgraded assets with modern technology, airconditioning and lifting capacity well placed to respond to evolving customer requirements
• • The benefits of a dynamic office environment cannot be fully replicated in a work from home setting
• • Skilled workforce attracted to companies with collaborative, vibrant and engaging environments to facilitate growth, mentoring and creativity
• • Continuing to progress activities to unlock development pipeline

• Prime includes Premium and A Grade assets. Excludes 32 Flinders Street (configured as a carpark) and 87-91 George Street (development site)

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The GPT Group 2020 Interim Result | 10 August 2020

Logistics Highlights

99.8% m 39 800 $55.7 , sqm PORTFOLIO VALUATION DEVELOPMENT OCCUPANCY UPLIFT COMPLETIONS

Key Highlights

• • Operations Net Income of $64.7 million, up 13.7% on comparable period
• • High rent collection rate of 99% for 1H 2020
• • Continued portfolio growth with three developments completed and two assets acquired growing portfolio to 1,083,100sqm
• • WALE of 6.9 years and lease expiry to December 2021 of 5.6%
• • Logistics valuations uplift of 2.3% with WACR firming to 5.29%

Portfolio Size & Geographic Exposure

Retail $5.7bn

Office $6.1bn

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Sydney 64%
Melbourne 25%
Brisbane 11%
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Logistics $2.6bn

• • Development land at Mamre Road, Kemps Creek achieved re-zoning
• • Pipeline of development projects with an expected end value of ~$1billion¹

2 Ironbark Close, Berrinba

1. Inclusive of projects underway

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The GPT Group 2020 Interim Result | 10 August 2020

Logistics Customer & Leasing

99.8%

PORTFOLIO OCCUPANCY

>70% ASX LISTED / GLOBAL ENTITIES

6.9 years WALE (BY INCOME)

• Occupancy increased with let up of vacancies together with addition of fully let development completions and acquisitions

• Completed 118,300sqm of signed leases with an additional 8,700sqm at terms agreed

• Introduction of new tenants into the portfolio including DHL & JB Hi-Fi

Transport, Postal & Trade (Retail & Warehousing Wholesale) Toll Coles Rand Transport Australian Pharmaceutical TNT 30% 35% Industries DHL Unilever Linfox Portfolio Super Retail Group Schenker Income Woolworths Wesfarmers by Industry JB Hi-Fi 12% Other Manufacturing 23% Vodafone Hutchison IVE Group QBE Pact Group Computershare Goodman Fielder

Goodman Fielder Infrabuild

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The GPT Group 2020 Interim Result | 10 August 2020

Evolution of Logistics

• • Acceleration in e-commerce and parcel delivery volumes, with potential for increased inventory to be held locally to provide resilience
• • Pipeline of infrastructure projects and government stimulus expected to drive economic recovery post COVID-19
• • Lower population growth in the near term, however growth expected over longer term with Australia expected to remain a destination of choice

e-commerce

Acceleration in e-commerce penetration with evolving consumer behaviour

Australia Post reported parcel deliveries in April averaging almost 2 million parcels per day, up by 90% compared to last year[1]

Last Mile

Consumer desire for speed and convenience

Online accounts for ~10.7% of total retail trade in Australia, growing ~23.1% compared to 12 months prior

NAB Online Retail Sales Index, June 2020

Infrastructure Investment Governments focused on shovel ready projects that create jobs and drive investment

US research estimates that an incremental US$1bn growth in e-commerce sales requires an additional ~115,000sqm of distribution space to support this growth

Forrester Research, CBRE Research, 2018

Supply Chain Scrutiny Scrutiny beyond Tier 1 suppliers to assess/manage exposure to risk

In June 2020 the Federal Government committed $1.5 billion to immediately commence work on priority infrastructure projects; with joint assessment teams working on accelerating projects worth more than $72 billion in public and private investment[2]

“Just in Time” to “Just in Case” Potential for increased inventory to provide resilience

1. Australia Post (https://newsroom.auspost.com.au/article/expanding-operations-and-casual-hires-to-manage-parcel-demand)

2. Speech to CEDA by the Hon Scott Morrison, sourced from SBS (https://www.sbs.com.au/news/scott-morrison-announces-additional-1-5-billion-towardsshovel-ready-projects)

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The GPT Group 2020 Interim Result | 10 August 2020

Logistics Portfolio Growth

$ 2.6B

8.4%

PORTFOLIO VALUE 1H 2020 PORTFOLIO GROWTH

• • Acquired two facilities totalling $75 million and completed three developments totalling $89 million
• • Valuation uplift of 2.3% with WACR firming by 11 basis points to 5.29%
• • Strong investor demand for prime logistics facilities, with volume transacted in Q2 2020 being the second strongest on record¹

	National	NSW	VIC	QLD
Number of assets	40	26	9	5
Investment Portfolio²	$2.4b	$1.5b	$0.6b	$0.3b
WACR	5.29%	5.17%	5.46%	5.52%
Portfolio Occupancy	99.8%	100.0%	99.3%	100.0%
WALE by Income	6.9 years	7.5 years	5.1 years	7.6 years

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1 Botero Place, Truganina

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21-23 Wirraway Drive, Port Melbourne

$42.2M PURCHASE PRICE 23,800sqm GLA

9.9years

WALE BY INCOME 4.8% INITIAL YIELD

$ 32.4M PURCHASE PRICE 7,200sqm GLA 5.5years WALE BY INCOME 4.9% INITIAL YIELD

1. Cushman & Wakefield, Marketbeat Q2 2020

2. Inclusive of assets held for sale of $103.0m; exclusive of land and assets under development of $196.3m

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The GPT Group 2020 Interim Result | 10 August 2020

Logistics Development Completions

39,800sqm

1H 2020 COMPLETIONS (GLA)

2 Ironbark Close, Berrinba, QLD

$48.5m

5.25%

FAIR VALUE (30 JUNE 2020) CAP RATE (30 JUNE 2020)

20,600sqm 6.1% GLA YIELD ON COST

9.7years WALE BY INCOME

DHL (pre-lease) TENANT

m $89.1

1H 2020 COMPLETIONS - VALUE

30 Ironbark Close, Berrinba, QLD

5.63% CAP RATE (30 JUNE 2020)

$27.6m FAIR VALUE (30 JUNE 2020)

14,400sqm 6.5% GLA YIELD ON COST

5.0years WALE BY INCOME

JB Hi-Fi & Windoware TENANT

38A Pine Road, Yennora, NSW

$13.0m 5.00% FAIR VALUE (30 JUNE 2020) CAP RATE (30 JUNE 2020) 4,800sqm 5.8%% GLA YIELD ON COST

5.8%% YIELD ON COST Westcon (pre-lease) TENANT

4.7years WALE BY INCOME

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The GPT Group 2020 Interim Result | 10 August 2020

Logistics Developments Underway

67,200sqm UNDERWAY PROJECTS - GLA

m $129 UNDERWAY PROJECTS – EXPECTED END VALUE ON COMPLETION

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128 Andrews Road, Penrith, NSW
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$85m FORECAST END VALUE

50,100sqm GLA

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2H 2020
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FORECAST COMPLETION

• • Two projects underway in Western Sydney
• • Penrith is due for completion in 2H 2020 and is pre-leased for a 10 year term
• • Glendenning is being developed on a speculative basis, with positive leasing enquiry and limited competing stock

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Artists impression
$44m
FORECAST END VALUE
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17,100sqm GLA

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1H 2021
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FORECAST COMPLETION
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42 Cox Place, Glendenning, NSW
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The GPT Group 2020 Interim Result | 10 August 2020

Logistics Development Pipeline | Kemps Creek Update

33.4ha SITE AREA

~ m $445 EXPECTED END VALUE ON COMPLETION

• • The Mamre Road precinct achieved rezoning in June 2020

• Designated a warehousing industrial hub providing ~17,000 new jobs in Western Sydney

• The precinct is located within the Western Sydney Employment Area and includes site of a potential Western Sydney freight intermodal terminal

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• • GPT’s 33.4ha site was acquired in 2019 on delayed settlement terms

• Land settling October 2020 - April 2021

• Expected to support approximately 160,000sqm of prime logistics space when complete, subject to authority approvals

• Flexible configuration options with warehouses of ~19,000sqm to ~47,000sqm expected to be constructed

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~10km Close proximity to to future Western M4 & M7 Sydney Airport interchange

<5km Adjacent to established to proposed industrial precinct of intermodal Erskine Park

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The GPT Group 2020 Interim Result | 10 August 2020

Logistics Development Pipeline

b ~$1.0 >500,000sqm

PIPELINE EXPECTED END VALUE¹ PIPELINE CAPACITY¹

State Estimated Area GLA¹ Estimated End Value Estimated Delivery Comment Wembley Business Park, Berrinba QLD 38,200sqm $75m 2021-2022 Stage 1 & 2 delivered in 1H 2020 with 2 stages remaining Gateway Logistics Hub, Truganina VIC 115,400sqm $169m 2021-2023 First facility delivered in 2H 2019 with 5 stages remaining Boundary Road, Truganina VIC 128,200sqm $205m 2023+ To be delivered in multiple stages following buildout of Gateway Logistics Hub Mamre Road, Kemps Creek NSW ~160,000sqm $445m 2022+ Located in close proximity to the future Western Sydney Airport 1. Expected end value on completion. Net of stages already delivered and inclusive of projects underway at Penrith and Glendenning (expected end value of $129 million and expected GLA of 67,200sqm). GLA subject to authority approvals.

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The GPT Group 2020 Interim Result | 10 August 2020

Retail

Interim Result 2020

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Retail Highlights

Portfolio Size & Geographic Exposure

$ 98% 91% 9,910 PORTFOLIO STORES OPEN SPECIALTY SALES OCCUPANCY AT 30 JUNE PRODUCTIVITY PER SQUARE Office METRE $6.1bn

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NSW 40%
VIC 45%
QLD 10%
NT 4%
Logistics
$2.6bn
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Retail $5.7bn

Key Overview

• • Retail Segment FFO contribution of $79.2 million for 6 months to June 2020 impacted by:
• • Lower property income due to rental assistance and provisions offset by savings in property expenses
• • Reduction in fees from property income and deferment of development projects
• • Valuation decline of 10.5% for 6 months to June 2020, and a WACR of 5.04%

Melbourne Central, Melbourne

The GPT Group 2020 Interim Result | 10 August 2020 31

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COVID-19 Update

Portfolio

Update

As at

31 July 2020

Traffic and Stores Open

Outside of retail assets in Victoria,

managed portfolio demonstrating signs of recovery:

• • 95% of stores now open and trading
• • Customer visitation returning with traffic at 85% of 2019 levels

Retailer Assistance

• • Across managed portfolio , completed 26% of expected deals with retailers required by Code of Conduct
• • In majority of cases preferred position by retailers is not to defer rent beyond Dec 2020

Marketing and Communications

• • Focused on signage and messaging to encourage shopper adherence to government restrictions
• • Targeted shopper communications via online platforms
• • Supporting retailers with marketing initiatives (such as Retailer Runner) to assist driving sales

Victoria

Update

As at 31 July 2020

• • Victoria based assets have 62% stores open with traffic numbers at 73% of 2019 levels (excluding Melbourne Central)
• • Melbourne Central impacted given reliance on CBD workers, tourists and students, with traffic averaging 15-20% of its normal levels and only 37% of the stores open
• • Finalisation of discussions with retailers regarding rental assistance may take longer given uncertainty of impacts from recent restrictions
• • Focus on providing safe environments promoting adherence to government guidelines

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The GPT Group 2020 Interim Result | 10 August 2020

Portfolio Performance

Retail Sales and Traffic

• • Heavily impacted from mid March through to May with government restrictions introduced
• • Recovery evident from May in line with relaxation of restrictions

MAT at 30 June 2020:

• • Centre Sales down 10% and Total Specialty Sales down 11%

Categories that have performed well despite conditions:

• • Supermarkets up 1.2%; Discount Department Stores up 0.3%
• • Technology, Food Retail and General Retail, on average down 2.7%

Categories impacted by government restrictions include:

• • Cinemas, Dining and Retail Services, average decline of 16.9%

Market Share (Physical vs Online)

• • Government restrictions led to significant store closures and a corresponding shift to online retail purchasing
• • Omni-channel retailers benefited most from this shift
• • The result was a loss in market share across the portfolio, with sales diverting to online and smaller local centres out-performing as shoppers sought to limit travel movements
• • Since late April, there has been a rebound as shoppers begin to return to established shopping behaviours

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10%
0%
-10%
-20%
-30%
-40%
-50%
-60%
-70%
-80%
Jan-20 Feb-20 Mar-20 Mar-20 Apr-20 Apr-20 May-20 Jun-20
Government Peak
measures COVID-19
implemented related impacts
Centre Sales growth (%) Spec/Mini Majors growth (%) Traffic growth (%) Traffic growth - ex Melb Central (%)
Data: Based on weighted portfolio
25% 12%
10%
20%
8%
15%
6%
10%
4%
5%
2%
0% 0%
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
Portfolio online leakage (%) - LHS Portfolio market share (%) - RHS
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Source: Quantium

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The GPT Group 2020 Interim Result | 10 August 2020

Portfolio Performance

Retail Leasing

• • Whilst leasing deals have slowed over last 3 months, 173 deals have been completed for the 6 months to June
• • Occupancy remains strong at 98.0%
• • In conjunction with COVID-19 discussions we are addressing holdovers and imminent lease expiries
• • New leasing deals are consistent with pre-COVID-19 conditions and include base rent, fixed increases and structured lease terms

Portfolio Leasing Statistics

	JUN 2020
Portfolio Occupancy	98.0%
Retention Rate	66%
Avg. Annual Fixed Increase1,2	4.7%
Avg. Lease Term1,2	4.5 years
Leasing Spread1,2	(5.2%)
Holdovers as a % of Base Rent2	9.8%
Specialty Occupancy Cost2	19.7%

Retail Valuations

• • 100% of retail portfolio independently valued as at 30 June 2020
• • GPT retail portfolio outcomes in line with market update in May 2020
• • WACR expanded 15 basis points, now at 5.04%
• • Valuers have considered the Code of Conduct through short term rental assistance assumptions in addition to adjustments to forecast growth rates, vacancy downtime and market rents

ASSET	JUNE 2020 VALUATION ($M) FAIR VALUE ADJUSTMENT ($M) CHANGE CAP RATE MOVEMENT
Melbourne Central	$1,595.5 ($36.6) (2.3%) -
Rouse Hill Town Centre	$635.2 ($48.5) (7.1%) -
Sunshine Plaza (50%)	$617.5 ($69.6) (10.2%) +25bps
Westfield Penrith (50%)	$655.5 ($80.0) (10.9%) +25bps
Highpoint (16.67%)	$358.3 ($57.0) (13.8%) +25bps
Charlestown Square	$865.0 ($140.0) (14.0%) +25bps
Casuarina Square (50%)	$207.8 ($41.6) (16.8%) +25bps
GPT ASSETS	$4,934.8 ($473.3) (8.8%)
GWSCF Equity Interest (28.5%)	$767.2 ($188.7) (19.9%)
TOTAL	$5,702.0 ($662.0) (10.5%)

1. New leases

2. Specialties <400sqm Statistics exclude development impacted centres (Sunshine Plaza) & holdovers

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The GPT Group 2020 Interim Result | 10 August 2020

Portfolio Strategy

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Responding to Changing Customer Preferences
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GPT Portfolio Quality
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• • Customers now demand convenience and during COVID have increased consumption of home delivery and online services
• • GPT’s “Retail Runner” responds to this customer demand which also supports retailers to maximise sales during and post-COVID

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Online ordering platform

• Pickup from retailer or from a designated “Click and

Collect” location at Centre

• Initially focused on food retailers, with intention to expand to other retail categories

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Portfolio of Leading Retail Assets

• • Melbourne Central ranked #1 with highest centre sales productivity[1]
• • 70% of GPT’s retail portfolio (by value) is ranked in the Top 20 in Australia based on specialty sales productivity[1]
• • GPT retail assets have an average annual sales turnover of ~$550 million

Located in Quality Markets

• GPT retail assets located in top 35% of Australia’s markets with exposure to strong population growth markets in NSW & VIC[2]

Investment in Assets to Meet Customer Expectations

Ensuring our retail assets have responded to customer needs across retailer offer, amenity and experience

• • 76% of portfolio has had refresh capital invested in last 5 years + Re-mixed to growth categories with over 530 new retailers introduced to portfolio over last 5 years

• Source: Shopping Centre Industry Big Guns – March 2020

• The quality of the market is evaluated across 320 different “SA3” market regions, weighted across Population Growth, Household Income, Retail Expenditure and Retail Supply

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The GPT Group 2020 Interim Result | 10 August 2020

Funds Management

Interim Result 2020

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Funds Management

Funds Management Financial Summary ($M) $ $ 12.8B 6.6% 289M 2020 2019 ASSETS UNDER EARNINGS NEW EQUITY Segment MANAGEMENT GROWTH RAISED IN GWOF

Segment 2020 2019 Result 24.2 22.7 GPT Wholesale Shopping Centre Fund

2020 2019 CHANGE

NEW EQUITY RAISED IN GWOF

24.2 22.7 6.6%

GPT Wholesale Office Fund

• • Well positioned with a high quality portfolio and 14.6% net gearing
• • Raised $289 million of new equity with five new investors participating
• • Expanded development pipeline to an estimated end value of approximately $3 billion with the George Street, Parramatta, acquisition
• • Over $1 billion of debt capacity to fund organic development pipeline or new acquisition opportunities
• • On-track to achieve Carbon Neutral certification for the portfolio in 2020
• • Next investor liquidity event in July 2026
• • Performance impacted by portfolio devaluations
• • Near-term focus on pandemic response and positioning for subsequent recovery
• • High quality portfolio of assets with mixed use opportunities over the longer term
• • Prudent capital management

• Net gearing 28.4%

• Next maturity in September 2022

• Distribution payout ratio reduced

• • Next investor liquidity event in March 2027

The GPT Group 2020 Interim Result | 10 August 2020 37

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• • GPT is bringing forward its Carbon Neutral portfolio commitment to 2024 (previously 2030)

• GWOF remains on-track to achieve its carbon neutral target by the end of 2020

• • The Group’s target covers all GPT managed assets
• • Launched our inaugural Climate Disclosure Statement in February and our new Sustainability Report in May 2020

• These reports demonstrate GPT’s commitment to embedding sustainability and governance principles in our day-to-day operations

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The GPT Group 2020 Interim Result | 10 August 2020

Responding near-term | Long-term growth

Well positioned for forecast economic conditions

• • Near-term economic and community conditions present challenges
• • Strong balance sheet with low gearing and high level of liquidity
• • High quality diversified portfolio with a focus on growing our Logistics exposure

Attractive pipeline of development opportunities in key sectors

• • 32 Smith Street progressing well and on track for completion
• • Logistics development pipeline a key source of growth with an estimated end value of ~$1 billion
• • Progressing Cockle Bay Park detailed planning

Clear strategic priorities

• • Progress delivery of Logistics development pipeline
• • Complete COVID-19 tenant negotiations
• • Strong focus on leasing and asset management
• • Leading the way with Carbon Neutral 2024 commitment

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The GPT Group 2020 Interim Result | 10 August 2020

Thank you for joining us

Questions

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Disclaimer

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

The information provided in this presentation is for general information only. It is not intended to be investment, legal or other advice and should not be relied upon as such. You should make your own assessment of, or obtain professional advice about, the information 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 30 June 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 6 months ended 30 June 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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The GPT Group 2020 Interim Result | 10 August 2020