Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Sign up Log in

GPT GROUP Investor Presentation 2011

Feb 24, 2011

65009_rns_2011-02-24_f605958d-cfa5-4bdc-be12-3e406e6de410.pdf

Investor Presentation

Open in viewer

Opens in your device viewer

Agenda

  • Financial Results Michael O'Brien
  • Capital Management Michael O'Brien
  • Business Performance Michael Cameron
  • Investment Management
  • Funds Management
  • Development
  • Sustainability

Strategy Michael Cameron

Outlook Michael Cameron

Reinvigorating GPT

In 2010 GPT delivered on its promise of

Strength, Stability and Earnings Growth

  • GPT has achieved realised operating income of \$410m
  • GPT has delivered on its 2010 objectives

GPT is on track to being

Australia's "Best Performing" Property Group

Note: All information included in this presentation includes GPT owned assets and GPT's interest in the Wholesale Funds (GWSCF and GWOF) unless otherwise stated. All retail data excludes the Queensland Homemaker City portfolio.

Strategy

(1) EPS defined as Realised Operating Income (ROI) per ordinary security.

4

2010 Highlights – Operational Scorecard has been delivered

Financial performance improved

  • 9ROI of \$410 million up 9%
  • Cost of debt reduced by 80bps(1)
  • 9 Credit ratings improved 9
  • Statutory profit up to \$707 million
  • NTA increased to \$3.60
  • Total return of 9.1%
  • 9 Top 3 performing AREIT by total securityholder return(2)
  • 9 EPS growth, while impacted by the 2009 capital raising, is turning around – up 6% in the second half

Solid operational performance

9Higher occupancy and long leases

Strategy

  • 9 Achieved 3.2% average comparable income growth
  • 9c\$800m capital raising for funds

Major development completed

9 Completed \$470m Charlestown Square retail expansion

(2) Performance measured against a subset of the S&P / ASX Property Index (peer companies).

9

9

9

(1) Compared with 2010 guidance.

2010 Highlights – Strategic Scorecard has been delivered

Exit of non core assets

  • 9 Sale of Ayers Rock Resort announced October 2010
  • 9 Sale of US Seniors announced February 2011

Portfolio management and capital allocation

9Framework in place

Closing the NTA gap

9 Good progress on all initiatives

Announced Asset Sales SOLD! H2O Portfolio
soLD! 120 Miller Rd, Villawood SOLD! Kings Canyon Resort
soLD! Lizard Island Resort SOLD! Alliance Portfolio
SOLD! Cradle Mountain Lodge SOLD! Alice Springs Resort
SOLD! Heron and Wilson Island Resorts SOLD! Hamburg Trust business
SOLD! Cannon Hill Homemaker City SOLD! Wrotham Park Lodge
soLD! Dunk Island Resort SOLD! SAF Assets
soLD! 973 Fairfield Rd, Yeerongpilly SOLD! Bergedorf Portfolio (Hamburg Trust)
SOLD! Bedarra Island Resort SOLD! Homemaker City Assets (4)
soLD! Floreat Forum SOLD! Four Points by Sheraton
soLD! Silky Oaks Lodge SOLD! Brampton Island Resort
soLD! Joint Venture (Europe) SOLD! Joint Venture (US Retail)
soLD! El Questro SOLD! US Multi-family Portfolio (BBR)
SOLD! Avers Rock Resort soLD! US Seniors Portfolio

2010 Highlights – Closing the NTA gap Substantial progress on closing the gap initiatives

(1) Comparison using the NTA value at the time that the strategy for 'closing the gap' was announced. NTA value has since increased to \$3.60 – the discount to the updated NTA value at 22 Feb 2011 was 13.9%.

Strategic Focus 2011 Continuing progress towards best performance

  • 1.Close the gap to NTA
  • 2.Optimise capital allocation
  • 3.Enhance growth potential
  • 4.Equip employees for high performance

2010 Result Summary Operating performance ahead of FY 2009

  • 9.1% increase in Realised Operating Income
  • Return to statutory profitability
  • Earnings per security of 20.7 cents
  • Distribution per security of 16.3 cents 80% payout ratio

GPT Financial Summary

12 months to 31 Dec 2010 2009 Change
Total Realised Operating Income (\$m) 410.0 375.8 $\triangle$ 9%
A-IFRS net profit/(loss) (\$m) 707.3 (1,070.6) $\uparrow$ 166%
ROI per ordinary security (cents) $(1)$ 20.7 23.8 $\sqrt{13\%}$
Distribution per ordinary security (cents) (1) 16.3 22.5 $\sqrt{28\%}$

9(1) Post 5 to 1 security consolidation. ROI and distribution per ordinary security reflect the impact of the May 2009 capital raising.

2010 Balance Sheet Summary Increase in NTA to \$3.60

  • 4% increase in NTA per security
  • Gearing remains low at 24.9%(1)

GPT Balance Sheet

A
t
3
1
D
s
a
e
c		 2
0
1
0		 2
0
0
9
\$
(
)
T
t
l
t
o
a
a
s
s
e
s
m		 9
7
5
2
,		 9
1
6
3
,
\$
T
l
b
i
(
)
t
o
a
o
r
r
o
w
n
g
s
m		 2
4
3
5
,		 2
1
8
4
,
N
t
t
i
b
l
t
e
a
n
g
e
a
s
s
e
s
\$
i
(
)
t
p
e
r
s
e
c
u
r
y		 3
6
0		 3
4
6
(
)
2
G
(
%
)
i
e
a
r
n
g		 2
9
4		 2
3
5
I
i
(
)
t
t
t
n
e
r
e
s
c
o
v
e
r
r
a
o
x		 3
7		 2
9

Balance sheet asset mix(3) As at 31 Dec 2010

(1) As at 31 Dec 2010. Note that following settlement of the US Seniors Housing sale, the gearing ratio will reduce to approximately 22.5%.

(2) Based on net debt.

(3) Assets in GPT's balance sheet portfolios + investments in GWOF and GWSCF.

2010 Segment Performance Reflects implementation of strategy

Realised Operating Income by segment

\$
(
)
1
2
t
h
t
3
1
D
m
o
n
s
o
e
c
m		 2
0
1
0		 2
0
0
9		 C
t
o
m
m
e
n
R
i
l
t
e
a		 2
6
3
7.		 2
6
8
3		 (
1
)
C
b
l
i
4
%
7
o
m
p
a
r
a
e
n
c
o
m
e
u
p
O
f
f
i
c
e		 1
1
4
8		 1
1
4
5		 (
1
)
C
b
l
i
1.
6
%
o
m
p
a
r
a
e
n
c
o
m
e
u
p
I
d
i
l
t
n
u
s
r
a		 4
4
5		 4
9
9		 C
b
l
i
2
%
7
o
m
p
a
r
a
e
n
c
o
m
e
u
p
(
2
)
F
d
M
t
u
n
s
a
n
a
g
e
m
e
n		 9
4
3		 9
8
6		 E
i
k
l
d
d
D
1
0
t
t
q
u
y
s
a
e
s
s
o
o
w
n
e
c
H
l
/
T
i
t
o
e
o
u
r
s
m		 2
9
6		 3
3
5		 R
d
d
b
f
t
e
u
c
e
n
u
m
e
r
o
a
s
s
e
s
U
S
S
i
H
i
e
n
o
r
s
o
u
s
n
g		 2
3
7		 1
8
6		 H
i
h
g
e
r
o
c
c
u
p
a
n
c
y
E
F
d
M
t
u
r
o
p
e
a
n
u
n
s
a
n
a
g
e
m
e
n		 4
4		 (
2
1.
0
)		 G
P
T
H
l
l
d
i
2
0
0
9
t
a
v
e
r
o
n
s
o
n
(
3
)
O
h
t
e
r		 0
0		 1.
5
C
t
o
r
p
o
r
a
e
I
t
t
n
e
r
e
s
e
x
p
e
n
s
e
-
C
h
d
t
o
r
p
o
r
a
e
o
v
e
r
e
a
s
-		 (
)
1
4
9
8
(
2
8
)
7		 (
)
1
7
5
1
(
3
3
)
7		 R
d
d
d
b
l
l
t
e
u
c
e
e
e
v
e
f
f
A
h
i
d
i
i
i
c
e
e
e
c
e
n
c
e
s
v
(
4
)
T
l
R
l
i
d
O
i
I
(
R
O
I
)
t
t
o
a
e
a
s
e
p
e
r
a
n
g
n
c
o
m
e		 4
1
0.
0		 3
8
7
5.

(1) Change in 2009 ROI reflects change in Melbourne Central to classify 100% of carpark as retail.

(2) Comprises \$22.7m in funds management fees and \$86.8m in distribution income less \$11.5m in costs and a tax expense of \$3.7m.

(3) 'Other' includes development profit and Joint Venture in 2009.

11

(4) Realised Operating Income is pre distribution on exchangeable securities.

2010 Management Expenses Delivered corporate expense savings

Achieved 15% reduction in corporate overheads against target of 10%

E
p
e
n
s
e
s
x		 'J a
w		 '
s
\$
1
2
h
3
1
D
(
)
t
t
m
o
n
s
o
e
c
m		 2
0
1
0		 2
0
0
9		 D
e
c
e
m		 b
e		 2
0
1
0
r
C
O
t
h
d
o
r
p
o
r
a
e
e
r
e
a
s
v		 2
8
7		 3
3
7		 'J
f
P
t
l
i
E
o
r
o
o
x
p
e
n
s
e
s		 3
9
7		 3
0
2		 3.
2
%		 '
7
8
%
a
w
s
=
f
T
B
i
t
a
x
e
n
e		 5
7		 3
0		 C
b
l
o
m
p
a
r
a
e
(
1
)
A
d
d
b
k
f
f
i
t
a
c
o
n
e
o
e
m
s		 0
3		 1
1
1		 N O
I
h
t
g
r
o
w		 (
)
4.
6
%
O
i
M
t
n
g
o
n
g
a
n
a
g
e
m
e
n
E
x
p
e
n
s
e
s		 4
4
7		 8
0
7		 M O
i
n
g
o
n
g
t
a
n
a
g
e
m
e
n
E
x
p
e
n
s
e

reduction

Capital Management Delivering value through capital management

O
b
j
i
t
e
c
e
s
v		 P
r
o
g
r
e
s
s
F
l
i
f
i
l
d
t
t
t
t
a
e
n
m
a
r
p
r
o
e
a
n
u
y
d
t
t
e
e
n
e
n
o
r
x		 9
\$
2
b
i
l
l
i
f
d
d
d
f
i
l
i
i
t
t
o
n
o
e
e
n
e
a
n
n
e
a
c
e
s
x
w
9
\$
6
%
f
1
3
b
2
0
1
2
i
f
i
d
7
o
n
e
x
p
r
y
r
e
n
a
n
c
e
9
A
d
b
t
t
t
t
i
t
l
t
h
d
v
e
r
a
g
e
e
e
r
m
o
m
a
u
r
y
e
n
g
e
n
e
5
t
o
e
a
r
s
y
I
d
i
i
t
t
m
p
r
o
e
c
r
e
r
a
n
g
v		 9
U
d
b
S
&
P
A
d
M
d
's
A
3
t
t
p
g
r
a
e
s
o
a
n
o
o
o
y
y
-
R
d
f
d
b
t
t
e
c
e
c
o
s
o
e
u		 9
f
(
)
A
t
2
0
1
0
d
8
0
b
i
i
t
1
v
e
r
a
g
e
c
o
s
o
r
o
w
n
a
s
s
p
o
n
s
9
F
f
2
0
1
1
i
6
9
%
t
t
o
r
e
c
a
s
c
o
s
o
r
c
r
c
a
9
O
i
i
d
l
i
i
d
i
f
i
l
t
t
p
m
s
e
q
u
y
p
r
o
e
S
i
b
l
d
i
i
b
i
t
t
t
s
a
n
a
e
s
r
o
n
u
u
l
i
p
o
c
y		 9
8
0
%
f
R
l
i
d
O
i
I
t
o
e
a
s
e
p
e
r
a
n
g
n
c
o
m
e

Credit position Comfortably ahead on key credit measures

  • (1) Debt less cash/total tangible assets less cash.
  • (2) As at 31 Dec 2010. Note that following settlement of the US Seniors sale, the gearing ratio will reduce to approximately 22.5% and the look through gearing ratio will reduce to approximately 24.3%.

(3) EBIT (ROI less tax expense less interest expense) / interest expense as per loan covenant.

Capital Management Debt maturity profile extended

  • Weighted average facility term to maturity of 5 years (up from 3.3 years at December 2009) v medium term target of > 4 years
  • New debt lines have flattened and lengthened maturity profile

Capital Management Debt cost reduced by 80 basis points in 2010

  • Liquidity optimised
  • New debt sourced at competitive margins
  • 'Forward starts' in place
  • Hedge restructuring undertaken
  • Substantially removed cost of debt as earnings "drag"

Average cost of debt

Core Portfolio3.2% income growth with high occupancy

Core portfolio performance

A
t
3
1
D
2
0
1
0
s
a
e
c		 C
b
l
o
m
p
a
r
a
e
i
n
c
o
m
e
h
t
g
r
o
w		 W
i
h
d
t
e
g
e
l
a
v
e
r
a
g
e
e
a
s
e
(
1
)
i
e
x
p
r
y		 (
2
)
O
c
c
p
a
n
c
u
y		 W
i
h
d
t
e
g
e
a
v
e
r
a
g
e
c
a
p
t
r
a
e
R
t
i
l
e
a		 4
7
%		 N
A		 9
9
9
%		 6
2
1
%
O
f
f
i
c
e		 %
1
6		 5
2
r
s
y		 %
9
7
8		 %
7
1
4
I
d
t
i
l
n
s
r
a
u		 %
2
7		 6
5
r
s
y		 %
9
8
4		 %
8
4
8

(2) Occupancy represents committed space.

Retail 4.7% comparable income growth

  • Solid income growth achieved despite subdued sales conditions
  • High occupancy and low level of arrears reflects quality of the portfolio

Key operating metrics

A
t
3
1
D
s
a
e
c		 2
0
1
0		 2
0
0
9
C
b
l
i
h
t
o
m
p
a
r
a
e
n
c
o
m
e
g
r
o
w		 4
%
7		 4
8
%
(
1
)
C
b
l
l
l
h
t
t
t
t
o
m
p
a
r
a
e
o
a
c
e
n
r
e
s
a
e
s
g
r
o
w		 0
7
%		 2
9
%
(
)
1
C
b
l
i
l
t
l
t
h
o
m
p
a
r
a
e
s
p
e
c
a
y
s
a
e
s
g
r
o
w		 0
%
5		 3
2
%
(
1
)
S
i
l
l
t
p
e
c
a
y
s
a
e
s
p
s
m		 \$
8
8
0
1
,		 \$
9
1
1
4
,
S
i
l
t
t
p
e
c
a
y
o
c
c
u
p
a
n
c
y
c
o
s
s		 1
7
7
%		 1
6
8
%
(
1
)
O
c
c
u
p
a
n
c
y		 9
9
9
%		 9
9
6
%
(
2
)
A
r
r
e
a
r
s		 %
0
3		 %
0
3

(1) GPT and GWSCF owned assets (excluding Homemaker City Portfolio, assets under development and Norton Plaza). Rouse Hill included in 2010 sales.

Retail Occupancy costs remain sustainable

  • High occupancy levels and low arrears indicate retail earnings growth is sustainable
  • Retailer profitability has grown in excess of sales resulting in higher EBIT margins
  • Quality regional centres have greater capacity to increase rents above sales growth over the medium term

19(1) Assumes 4.5% specialty rental growth. GPT and GWSCF owned assets.

Retail Improved sales outlook for 2011

  • Forecast sales growth of 3% in 2011
  • Underpinned by economic, employment and wages growth
  • GPT portfolio well positioned with almost full occupancy and a high proportion of structured rental increases

OfficeStrong occupancy and leasing outcomes

  • Comparable income growth at 1.6%
  • Strong leasing outcomes achieved in second half
  • Significant reduction in cash paid for lease incentives
  • Sustainability NABERS energy rating of 4.6 stars highest in the sector(1)

Key operating metrics

A
3
1
D
t
s
a
e
c		 2
0
1
0		 2
0
0
9
C
b
l
i
h
t
o
m
p
a
r
a
e
n
c
o
m
e
g
r
o
w		 1
6
%		 2
6
%
O
c
c
u
p
a
n
c
y		 9
3
5
%		 9
2
5
%
O
(
i
l
d
i
d
)
t
c
c
p
a
n
c
n
c
n
g
e
r
m
s
a
g
r
e
e
u
y
u		 9
7
8
%		 9
5
9
%
W
i
h
d
l
i
t
e
g
e
a
e
r
a
g
e
e
a
s
e
e
p
r
v
x
y		 5
2
e
a
r
s
y		 5
2
e
a
r
s
y
L
i
d
e
a
s
e
s
s
g
n
e		 1
0
5
7
4
4
s
q
m
,		 1
3
6
7
0
0
s
q
m
,
T
d
d
t
e
r
m
s
a
g
r
e
e
a
y
e
a
r
e
n		 1
8
4
2
6
s
q
m
,		 1
2
8
0
0
s
q
m
,

(1) Source: Citi Research Jan 2011. Including Green Power. Note: The 4.6 stars rating was for 2009. GPT's projected average rating for 2010 is 4.8 stars.

OfficeHighest quality portfolio

22

  • 56% of GPT's Office portfolio is premium grade the largest proportion of any Australian REIT
  • Occupancy(1) increased to 97.8% well ahead of market average of 91.4%
  • Average capitalisation rate firmed from 7.27% to 7.14%

OfficeImproved market conditions for 2011

  • Constrained supply in all markets and positive net absorption
  • Prime vacancies generally reducing, reinforcing expectations for solid rental and capital growth in 2011 and accelerating in 2012
  • Over 87% of leases(1) subject to fixed increases averaging 4% in 2011
  • Low 7.6% lease expiry in 2011

Source: Jones Lang LaSalle Research, Dec 10.

23 Source: Jones Lang LaSalle Research, Dec 10. (1) Refers to leases subject to a review in 2011, calculated based on area.

Industrial High occupancy and long WALE

  • Industrial portfolio maintains high occupancy and long dated WALE
  • Income growth of 2.7% continues positive trend
  • Strong leasing activity achieved

Key operating metrics

A
3
1
D
t
s
a
e
c		 2
0
1
0		 2
0
0
9
C
b
l
i
t
h
o
m
p
a
r
a
e
n
c
o
m
e
g
r
o
w		 2
7
%		 2
%
5
O
(
)
b
i
c
c
p
a
n
c
n
c
o
m
e
u
y
y		 9
8
%
4		 9
6
%
5
(
)
W
i
h
t
d
l
i
b
i
e
g
e
a
e
r
a
g
e
e
a
s
e
e
p
r
n
c
o
m
e
v
x
y
y		 6
5
e
a
r
s
y		 7
2
e
a
r
s
y
L
i
d
e
a
s
e
s
s
g
n
e		 8
9
8
4
5
s
q
m
,		 3
9
0
5
5
s
q
m
,

Industrial Positive demand and limited supply in 2011

  • Rental growth underpinned by improving tenant demand and limited uncommitted supply
  • 89% of portfolio(1) subject to fixed reviews of 3.3% in 2011
  • Increased focus on \$970 million development pipeline given improved market fundamentals

25Source: Bureau of Infrastructure, Transport and Regional Economics (BTRE). (1) Refers to leases subject to a review in 2011, calculated based on area

Funds Management Strong relationships with investors

  • The wholesale funds platform provides:
  • Income through funds, property and development management fees
  • Access to an additional source of capital
  • Stable earnings through GPT's co-investment
  • Leverage through scale and access to quality assets
  • Keys to success are the strong relationships GPT has with a wide base of high quality investors – demonstrated by support received for:
  • \$578 million capital raising in GWOF
  • \$216 million selldown of GPT's investment
  • \$31 million in DRP

Funds Management Solid performance in 2010

  • Solid one year returns with three year performance at or near top of the market(1)
  • GWOF acquired a 50% interest in a premium grade office development at 161 Castlereagh St and divested 179 Elizabeth St in line with strategy
  • Low gearing in both funds positions them well for expansion in 2011
F
d
u
n
s
u
m
m
a
r
y
A
t
3
1
D
2
0
1
0
s
a
e
c		 G
O
W
F		 G
S
C
W
F
T
t
l
A
t
o
a
s
s
e
s		 \$
3
1
b
n		 \$
2
1
b
n
G
P
T
I
t
t
n
e
s
m
e
n
v		 \$
8
9
7
6
m		 \$
3
9
3
9
m
G
P
T
I
t
t
n
e
s
m
e
n
v		 %
3
3
3		 %
2
1
9
O
Y
T
l
R
(
f
)
t
t
t
n
e
e
a
r
o
a
e
u
r
n
p
o
s
e
e
s		 8
6
%		 7
9
%
G
i
e
a
r
n
g		 1
0
8
%		 1
0
0
%

Funds Management Enhanced returns from fund sell down

  • GPT completed a \$216 million selldown of its fund investments, enhancing returns by 30 basis points out of a possible 100 basis points
  • Additional returns available by reducing to a target holding of 20%

(1) Includes fund, property and development management fees.

(2) Includes tax expense.

28Note: Returns calculated based on 31 Dec 2010 data assuming 33% and 20% holdings respectively.

Non Core Asset SalesExit from hotels and offshore assets

  • Sale announced October 2010 Ayers Rock Resort
  • Completes exit from the Hotel and Tourism Sector
  • Exchange of binding sale contracts February 2011 US Seniors portfolio
  • Sale price US\$890 million

GPT asset mixAs at 31 Dec 2010

GPT asset mixPost non-core sales(1)

Development Charlestown Square expansion completed

  • GPT completed a \$470 million redevelopment of Charlestown Square increasing the size of the centre from 47,000 sqm to 88,000 sqm
  • Expected 40% reduction in ecological footprint, ahead of 30% target(1)
  • Stabilised yield of 7% and IRR of 10% expected
  • Early trading performance above expectations

Charlestown Square opened Nov 2010

Development One One One Eagle Street update

  • Completion date extended to March 2012 due to the Queensland floods
  • Subdued Brisbane property market and floods have resulted in:
  • Higher capital costs
    • Net write-down of \$27m (GPT's share)
  • Target yield of 7% fully leased
  • Norton Rose committed to 5,000sqm
  • Active negotiations for a further 36% of space Total 230
L
i
e
a
s
n
g
O
O
O
E
l
S
t
n
e
n
e
n
e
a
g
e		 6
4
0
0
0
s
q
m
,
S
i
d
l
g
n
e
e
a
s
e
s		 8
%
L
i
T
b
P
C
(
M
1
2
)
t
e
a
s
n
g
a
r
g
e
y
a
r		 4
0
%
F
l
l
i
d
i
h
i
2
t
t
t
7
u
y
c
o
m
m
e
w
n
h
P
C
t
t
m
o
n
s
p
o
s		 J
l
2
0
1
4
u
1
C
(
G
P
T
h
)
t
o
s
s
a
r
e		 \$
(
)
m
S
t
t
3
1
D
2
0
1
0
p
e
n
o
e
c		 1
2
1
R
i
i
t
b
t
e
m
a
n
n
g
o
e
s
p
e
n		 1
0
9

Development \$3.3 billion pipeline on balance sheet and in funds

GPT has \$2.1 billion of developments underway and planned with an additional \$1.25 billion of opportunities in the pipeline

U
d
n
e
r
w
a
y		 P
l
d
a
n
n
e
/
F
t
t
c
a
s
o		 l
t
c
o
m
p
e
e
\$
A
F
b
2
0
1
1
(
)
t
s
a
e
m		 G
P
T		 F
d
u
n
s
R
t
i
l
e
a
:		 R
i
l
t
e
a
C
S
h
l
t
a
r
e
s
o
n
q
w		 1
0		 - O
f
f
i
c
e
C
M
l
b
t
l
e
o
r
n
e
e
n
r
a
u		 2
0		 - I
d
t
i
l
n
s
r
a
u
O
f
f
i
c
e
:
S
1
1
1
E
l
t
a
g
e		 1
0
9		 1
0
9		 T
l
t
o
a
(
1
)
1
6
1
C
t
l
h
S
t
a
s
e
r
e
a
g		 - 2
7
0
I
d
t
i
l
n
s
r
a
u
:
5
M
R
u
r
r
a
y
o
s
e		 5
0		 -
T
l
t
o
a		 1
8
9		 3
7
9
O
w
n		 h
i
e
r
s
p
\$
A
t
F
b
2
0
1
1
(
)
s
a
e
m		 G
P
T		 F
d
n
s
u
R
t
i
l
e
a		 5
9
0		 4
0
0
O
f
f
i
c
e		 2
9
5		 -
I
d
i
l
t
n
u
s
r
a		 2
2
5		 -
T
t
l
o
a		 1,
1
1
0		 4
0
0
F
t
i
l
i
u
u
r
e
p
p
e
n
e
\$
A
F
b
2
0
1
1
(
)
t
s
a
e
m		 T
o		 l
C
t
t
a
o
s
F
t
i
l
i
t
t
l
u
u
r
e
p
p
e
n
e
o
a		 1,
2
0
5

GPT's direct share of the \$3.3bn pipeline is approximately \$1.3bn of underway and planned and \$1.1bn of the future pipeline

32Note: Development costs exclude co-owners' contributions. (1) Grocon is undertaking the development of 161 Castlereagh St.

Sustainability Achievements in 2010

    1. Internationally recognised for sustainability leadership in real estate sector
  • 2.Significant gains in energy efficiency
    1. GPT office portfolio has the highest weighted average NABERS energy rating
    1. New community facilities included in \$470m Charlestown Square development and community research integral to our approach
    1. GPT food recovery program pilot launched in Western Sydney

Water Intensity È36%

Energy & Emissions È28%

Recycling Rate Up to 50%

Note: Relative to base year of 2005.

Strategic Priorities 2011

  • 1.Close the gap to NTA
  • 2.Optimise capital allocation
  • 3.Enhance growth potential
  • 4.Equip employees for high performance

Strategic Priorities 2011 1. Close the gap to NTA

  • Further reduction of investment in wholesale funds
  • Efficiency gains through optimising business processes
  • Sale of non-income producing assets

Strategic Priorities 2011 2. Optimise capital allocation

  • Capital allocation framework
  • Potential divestment of under performing assets
  • Assessment of investment opportunities against other capital options

Capital allocation framework

Strategic Priorities 2011

  1. Enhance growth potential over time

  2. Optimisation of core assets through customer centric approach

  3. Growth in Funds Management fees
  4. Accretive developments and acquisitions
  5. Additional revenue sources

Strategic Priorities 2011 4. Equip employees for high performance

  • Further capability building
  • New head office work environment
  • Upgrading technology tools
  • Frameworks to enhance innovation and continuous improvement
  • Development plans for all employees

Outlook for 2011

  • Retail: Improved sales outlook underpinned by economic, employment and wages growth
  • Office: Prime vacancy reducing, reinforcing expectations for solid rental and capital growth
  • Industrial: Improving tenant demand and limited uncommitted supply supports rental growth
  • Guidance: EPS(1) growth of at least CPI + 1%
  • Payout ratio of no less than 80% of ROI

Reinvigorating GPT

In 2010 GPT delivered on its promise of

Strength, Stability and Earnings Growth

  • GPT has achieved realised operating income of \$410m
  • GPT has delivered on its 2010 objectives
  • Optimising capital management
  • -Delivering income growth
  • Reducing costs
  • Completing major developments
  • Exiting non core assets

GPT is on track to being

Australia's "Best Performing" Property Group

Contact Information

Michael CameronChief Executive Officer andManaging Director

Tel: +61 2 8239 3565Mob: +61 410 437 597 Email: [email protected]

Tel: +61 2 8239 3544

Email: michael.o'[email protected]

Mob: +61 417 691 028

Michael O'BrienChief Financial Officer

Judy Barraclough Head of Strategy and Corporate Affairs

Tel: +61 2 8239 3752Mob: +61 418 962 301Email: [email protected]

The GPT Group

ABN 27 107 426 504 Level 52MLC Centre19 Martin PlaceSydney NSW 2000 Tel: +61 2 8239 3555Fax:+61 2 9225 9318

www.gpt.com.au

Disclaimer

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

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

You should note that returns from all investments may fluctuate and that past performance is not necessarily a guide to future performance. Furthermore, while every effort is made to provide accurate and complete information, the GPT Group does not represent or warrant that the information in this presentation is free from errors or omissions, is complete or is suitable for your intended use. In particular, no representation or warranty is given as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in the information - such material is, by its nature, subject to significant uncertainties and contingencies. To the maximum extent permitted by law, the GPT Group, its related companies, officers, employees and agents will not be liable to you in any way for any loss, damage, cost or expense (whether direct or indirect) howsoever arising in connection with the contents of, or any errors or omissions in, this presentation. Information is stated as at December 2010 unless otherwise indicated.

All values are expressed in Australian currency unless otherwise indicated.

More from GPT GROUP

Earnings Release 2026
May 5
Director's Dealing 2026
Apr 20
Share Issue/Capital Change 2026
Apr 20
Director's Dealing 2026
Apr 16
Capital/Financing Update 2026
Apr 15
Declaration of Voting Results & Voting Rights Announcements 2026
Apr 9
AGM Information 2026
Apr 9
Regulatory Filings 2026
Apr 1
Director's Dealing 2026
Mar 31
Share Issue/Capital Change 2026
Mar 31
View all filings →