GPT GROUP — Investor Presentation 2013

Oct 27, 2013

ProPerty to ProsPerity 2013 Strategy Update

The GPT Group 2013 Investor Presentation

the journey since 2009

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clean uP
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→Funds management
→Development
→New profit sources
grow →Accretive acquisitions
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→Enhanced capital allocation framework →Reduced debt costs →Improved productivity →Aligned organisational structure with strategy →S&P rating A- →Refined strategy →Management changes, new skills →Capital management initiatives

• →Re-capitalisation →Exit of non-core assets →Board refresh →Exit B&B JV

2013 strategy review

Deep dive into fundamentals Sought Challenged external conventional insights wisdom

the journey since 2009 02 / 57

The GPT Group 2013 Investor Presentation

the journey ahead

ahead →FUM value included in NAV →Demonstrated organic growth →Further growth platforms identified →Price premium →Maintain low cost of capital →Increased active earnings →Significant product for balance sheet and funds →Income streams from property solutions →Outperformance →Opportunistic activity →$10 billion growth in FUM →Flexible development model →Customer centric approach →Strategic business intelligence capability →MER < 45 bps →Funds Management →Development →New profit sources →Capital allocation culture →Fortress balance sheet

driven by total return: target > 9%

the journey ahead 03 / 57

The GPT Group 2013 Investor Presentation

caPability Sector specialists

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asset base grouP Portfolio retail Portfolio office Portfolio logistics Portfolio
No. assets 65 assets 16 shopping centres 20 assets 29 assets
GLA 2,630,000 sqm 980,000 sqm GLA 1,010,000 sqm NLA 640,000 sqm GLA
No. tenants 3,920+ tenants 3,500+ tenants 350+ tenants 70+ tenants
AUM $14.8b AUM $7.5b AUM $6.3b AUM $1.0b AUM
Platform emPloyees
Investment Management 12
Funds Management 11 Under
development
Asset Management 212
Leasing 17
Development 25
Support Functions 152
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Scale and end to end capability in each sector

capability 04 / 57

The GPT Group 2013 Investor Presentation

business model & caPability

development Anthony McNulty John Thomas

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asset management Matthew Faddy

investment management Carmel Hourigan

caPital allocation

funds management Nicholas Harris

business optimisation Mark Fookes James Coyne Phil Taylor

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corporate development Michael O’Brien

business model and capability 05 / 57

The GPT Group 2013 Investor Presentation

gPt’s PrinciPles for driving success

factor

gPt aPProach

capital allocation

asset quality

Strong NAV growth beyond capital growth Ability to allocate the right amount of capital to the right assets at the right time Taking advantage of diferences between NTA and the security price Assets consistently attracting high levels of demand for space Provides stronger income growth over time and ensures greater resilience in performance through difficult periods

capital management

Strong balance sheet management, low leverage, low cost of capital, and better access to capital sources Having capacity to access opportunities when pricing is most attractive

scale Delivers economies and the opportunity to reduce the expense burden Provides opportunities to invest in areas outside the core sector focus Sector specialisation creates advantages through relationships, operational excellence or asset quality development Lower than average exposure to development as a proportion of total assets

gPt’s principles for driving success 06 / 57

The GPT Group 2013 Investor Presentation

imPlications for gPt

driven by total return

→ Sector specialists in a diversified framework with flexible approach

→ Capital allocation is fundamental to everything we do

$10 billion increase in fum

frugal approach and fortress balance sheet

→ Earnings: 90% passive, 10% active

→ Active earnings to comprise predominantly Funds Management fees

→ Target low MER of less than 45 basis points

→ Capacity to be opportunistic

implications for gPt 07 / 57

tThe GPT Groupg tg 2013 Investor Presentation

TiTle of secTion driven by total return

section name

08 / 5 97

The GPT Group 2013 Investor Presentation

Portfolio Core sector strategy

To own and actively manage a diversified portfolio of quality assets delivering a secure, reliable investment targeting superior risk adjusted returns over time

gPt 10 year irr to 30 june 2013

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10.1% 9.6% 10.0%
9.0%
Retail Office Logistics
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Key drivers of total return performance within GPT business model:

→ Flexibility to allocate capital into individual sector opportunities that have the superior business case at a point in time;

→ Stock selection rather than sector weighting;

→ Ability to ‘dial up’ or ‘dial down’ different sector streams at appropriate times in the cycle; and

→ End to end capability within sectors.

GPT has delivered strong historical 10 year returns above the benchmark of 9 per cent.

Portfolio 09 / 57

The GPT Group 2013 Investor Presentation

Portfolio Investment Snapshot

gPt balance sheet weightings ($bn)

2011 to 2013 weighting and portfolio strategies:

→ Rationalise the retail portfolio to have dominant retail centres, evolve retail mix and ensure scale and synergies maintained;

→ Internalise office portfolio, enhance end to end capability and grow GWOF platform; and

→ Grow logistics portfolio and provide platform to become a major logistics provider.

2013+ to have greater focus on sector scale, specialisation and stock opportunities rather than sector weightings.

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$0.8
$1.0
$2.6
$2.8
$5.3 $4.4
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dec 2011
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sep 2013
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Retail Office Logistics

Continue focus on sector specialisation

Portfolio

10 / 57

The GPT Group 2013 Investor Presentation

Portfolio Benefits of diversification

total return correlations – from 1986 (27 yrs) (%)

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PRime SeCOnDaRy PRime SeCOnDaRy PRime SeCOnDaRy
OffiCe OffiCe RetaiL RetaiL inDuStRiaL inDuStRiaL
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total returns between core sectors show strong positive correlation >60%

Prime ofce	100
Secondary Ofce	97	100
Prime Retail	66	62	100
Secondary Retail	78	80	82	100
Prime Industrial	86	87	58	83	100
SecondaryIndustrial	87	91	63	89	95	100

capital growth correlations – from 1986 (27 yrs) (%)

Highly correlated capital growth between sectors due to uniform changes in direction to cap rates

Prime ofce	100
Secondary Ofce	97	100
Prime Retail	68	67	100
Secondary Retail	79	81	84	100
Prime Industrial	89	89	61	84	100
SecondaryIndustrial	91	93	68	90	94	100

income return correlations – from 1986 (27 yrs) (%)

Lower correlations evident within income returns

Prime ofce	100
Secondary Ofce	69	100
Prime Retail	-48	-3	100
Secondary Retail	-1	58	72	100
Prime Industrial	34	80	42	81	100
SecondaryIndustrial	41	86	24	77	92	100

Source: IPD and GPT Research

Diversified portfolio enables consistency of income through the cycle

Portfolio 11 / 57

The GPT Group 2013 Investor Presentation

Portfolio Weightings

Source: IPD and GPT Research

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Prime Property sectors
Total Return & Volatility of Returns (%)
Over a shorter time period,
there has been a convergence
in return performance
retail office industrial diversified best case
28 yrs 3 yrs Volatility (1 Standard Dev)
Equal weighting to each sector
Assumes 100% weighting to best performing sector each quarter
Prime Property
Total Return Variance (10 Years)
The return variance within sectors %
is much greater than the variance 16 14.6
between sectors 14 12.5 12.3
12 8.9% – 9.2%
variance within
Stock selection is more critical to 10 sectors*
performance than sector weightings 8 2.2% variance
6
between
sectors
4
Important to maintain a significant
5.4
presence in each sector to preserve 2
3.4 3.4
sector scale and capability Prime office Prime retail Prime industrial
15.3
13.2
10.2 10.6 10.9 10.4
9.3 8.9 9.6 9.7
5.2
4.2
2.8 3.5 3.2
total return (cagr %) 0.7 0.3
0.3 0.5 0.4
total return (10 years)
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Stock selection is more critical to performance than sector weightings Important to maintain a significant presence in each sector to preserve sector scale and capability

• Based on variance between upper and lower quartiles

• ** Based on variance between sector medians

Capital allocation decisions focused on stock selection rather than sector allocation

Portfolio

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The GPT Group 2013 Investor Presentation

caPital allocation Framework delivers su erior decisions p

toP-down aPProach

ReSeaRCH inPutS PORtfOLiO StRategy → Macroeconomic position Office Retail Logistics → Market data → GPT House view forecasts by sector PORtfOLiO iRR → GPT Bespoke 5 year average cash ‘White Paper’ and yield outcomes external research → Strategic insights and business →Individual asset plans intelligence

• →Asset valuation metrics →Budget/re-forecast of asset plans →Leasing and capital strategies →Asset houseviews for all sectors

bottom-uP aPProach

OutPutS

→ Sector tilts

→ Hold/buy/sell recommendation

→ Alternative uses of capital

• →Capital mgt

• →Fund stakes

• →New funds & revenue streams

→ Development/ refurbishments

The rigour of our process drives returns and a unique competitive advantage

capital allocation 13 / 57

The GPT Group 2013 Investor Presentation

caPital allocation Analysis of opportunities

theoretical example of pricing matrix

Focus on long term real estate performance as measured by 10 year IRR 5 year average cash yield utilised as proxy for risk

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High risk? High risk?
Too optimistic in the second Good purchase?
half of cash flow?
Target 9%
Overpriced? Yield trap?
Too conservative in the Mispriced terminal?
second half of the cash flow? Low risk asset?
Low risk asset?
Why the high yield?
10 year irr
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5 year average cash yield

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9% target return
Development
Each category in the GPT investment universe gWOf
gWSCf
is given a target return
Share buyback
LBP
The investment opportunity is assessed against
Office
its target, providing a spread to target
Retail
8.00% 9.00% 10.00% 11.00%
Return Bands
spread analysis
This measure is then compared to spreads from
other opportunities in the GPT investment universe
to provide appropriate risk adjusted benchmarks
-2.00% -1.00% 0.00% 1.00% 2.00%
Spread from target return
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capital allocation 14 / 57

The GPT Group 2013 Investor Presentation

caPital allocation

Acquisitions and developments are measured against the buyback

(1) Based on a $500m buyback at NTA vs. an acquisition at an unlevered return of 9.0%, with the acquisition sized to achieve the same post transaction gearing

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acquisition or develoPment security buy back
Potential →Strong return potential →Increased shareholder value when conducted at
benefits →Additional diversification of asset and tenant base the right price
→Partnership opportunities with Funds →Minimal transaction costs
→Increase in fees →Well understood risk profile
→Increase in AM fees
Potential →Capital exposure →Higher gearing
risks
→Market/leasing risk →Reduced capacity
→Development risk
based on moving to
impact of a buyback [(1) ] (%) impact of an acquisition [(1) ] (%)
equivalent gearing
levels, an acquisition
needs to outperform
a buyback on a risk
adjusted basis
0.4
0.3
9.0 9.3 9.0 9.4
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gPt target acquisition total total return impact return Post

gPt target buyback total total return impact return Post

capital allocation 15 / 57

The GPT Group 2013 Investor Presentation

retail Trends and response

online retail Penetration

• →Decrease weighting from apparel and increase exposure to food, service and experience based retail

• →Evolve the retail mix towards successful formats; and ensure that development plans have flexibility to re-configure majors boxes

retail Price harmonisation

• →Scrutinise portfolio composition against asset ‘quality’ criteria with divestment of less productive malls

omni-channel retailing

• →Reduce exposure to apparel retailers that do not incorporate an omni-channel strategy

• →Identify the requirements for infrastructure to support retailers online strategy

ageing Population and improved longevity

• →Increase weighting towards service and community facilities

• →Focus on regional centres that fulfil (or have the potential to fulfil) a town centre role and have the associated infrastructure

overseas →Prime regional centres to remain a focus and drawcard for retailer international retailers entry →Proactively target prospective overseas retailers

retail 16 / 57

The GPT Group 2013 Investor Presentation

retail

Evolving the retail mix active remixing to decrease weighting towards apparel and increasing exposure to food, service, and experience based retail

rouse hill retail specialties composition

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2010 Proportion of Specialty GLA
2013 Proportion of Specialty GLA
apparel food retail general leisure homewares food jewellery mobile
catering services retail retail Phones
tenant count
2010 64 34 22 15 10 12 11 7 7
2013 57 38 27 13 11 7 11 7 5
41.1%
39.0%
17.6%
14.2%
10.9%
10.2% 10.2%
9.5%
8.4% 7.4% 8.0%
6.0%
4.3% 4.8%
2.5% 2.6%
1.8% 1.6%
Proportion of specialty lettable area
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Source: GPT data as at 30 June 2013 and 30 June 2010. Excludes vacant tenancies.

retail 17 / 57

The GPT Group 2013 Investor Presentation

retail

Integrated capabilities to drive returns

the $300m expansion of highpoint has delivered strong returns across the group

revaluation uPlift $210m

gwscf benefits → significant development profit achieved → #1 performing wholesale fund over 1 year → successful equity raise

gPt benefits → significant development profit achieved → increase in asset management fees $1.5m pa → increase in fund management fees $1.2m pa

retail 18 / 57

The GPT Group 2013 Investor Presentation

retail

Incrementally develop when time is right casuarina – mixed use elements and staged approach to development

stage 1 Mixed use

stage 2 Leisure & Entertainment

stage 3 Myer Expansion

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retail 19 / 57

The GPT Group 2013 Investor Presentation

office

Leading capability with proven track record

• → Market leading leasing success driving capital value upside

• → Outperformance in GWOF and balance sheet against target and relative peer group

• → Leading office wholesale fund in Australian market

• → GWOF ranked #1 in GRESB score

• → End to end office capability – Investment management; Development; Asset management; Property management

gPt Performance

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% Cap rate
Compression
-15
Peer Set
GPT
-10
Reduction
in future
-5 income risk
0
5
10
0.20 0.10 0.00 -0.10 -0.20 -0.30 %
Movement in Cap Rate
FY17
Reduction in expiry profile Present to
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Source: Company

gPt relative office returns vs Peer group benchmark

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1 year 3 year
total return (%)
9.6 8.8 8.7 8.9
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Peer Benchmark

GPT Group

gwof Performance (%)

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gwof mercer/iPd all Peer 1 Peer 2 Peer 3
office index
1 Year 3 Year 5 Year
10.9
10.2
8.5
8.6 8.5 7.3 6.8 8.1
6.4
6.0
4.8
2.8
1.6
1.7%
-1.2
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Source: IPD

office 20 / 57

The GPT Group 2013 Investor Presentation

office Trends and response

densification

• →Embrace densification and assist clients in providing solutions

• →Focus on assets with capability to deliver denser workspaces with enhanced amenities

• →Focus on assets with a ‘point of difference’ and quality overlay

offshoring

• →Robust tangible and intangible Quality Assessment Criteria →Ensuring the buildings meet the quality definitions to provide customers appropriate work environments to support superior workforce retention/attraction

inter-market movements

sustainability

• →Greater impact in Sydney with wider discrepancy of rents →Opportunity in other sub markets with significant price point differences

• →More open geographic mandate although rigid quality criteria →Continued focus on Green Star rating in order to provide superior tenant satisfaction

• →Innogen initiatives to drive superior cost and sustainability outcomes →Potential to partner with corporates to assist with CSR requirements

flexible work Practices

• →Provide amenity to offer workplace flexibility →Utilise relationships with customers to provide flexible solutions for businesses across state offices

• →MCT trial at the Victorian State Office. Liquid Space concept on vacant areas

office 21 / 57

The GPT Group 2013 Investor Presentation

office Implications for GPT Office Portfolio

diversity →Improve diversity without sacrificing quality →Historical risk/return performance supports increasing A Grade exposure maintain quality →Maintain strategy to focus on prime office assets →Tangible and intangible quality assessment beyond traditional measures of quality Price Point →Broaden rental price point and sub market exposure across portfolio control →Prefer 100% ownership or control of an asset →Management control where possible

asset diversification existing Portfolio

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Premium v a-grade
asset diversification existing Portfolio
Total Returns – Risk adjusted
Premium a grade
64% GPT 36% 20 yr total return
GWOF correlation
Prem a grade
a grade 95%
B grade 94% 93%
20 yrs 10 yrs
Prem A Grade B Grade
2.94
2.84
2.39
2.37 2.30
2.03
sharp ratio
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office 22 / 57

The GPT Group 2013 Investor Presentation

logistics Trends and response

supply chain efficiencies

• →Continued focus on prime locations in proximity to major infrastructure nodes

• →Provide facilities that are adaptable to changes in technology

• →Location for skilled labour

consolidation of warehouses

• →Greater focus on quality criteria to avoid investing in obsolete facilities →Facilities to have ability to provide required efficiencies

• →Recycling and reposition of assets to meet the future needs of users →Platform to deliver new product

land side capacity constraints

• →Risk mitigation around modes of transport

• →Position portfolio that has optionality around road and rail →Leverage into relationships with Port operators

‘last mile’ challenges

• →Further investigation around challenges of the ‘last mile’

→Cross portfolio opportunities →Deep understanding of population growth trends

decline in manufacturing

→Focus on mitigating risk associated with manufacturing sector

→Understanding of functional obsolescence of facilities

implications of →Understanding ‘last mile’ implications e-commerce

logistics 23 / 57

The GPT Group 2013 Investor Presentation

logistics Value added since 2012

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caPital value average wale yield
strategy Part 1: growth via high quality investment Product
existing investments $222m 3.3 years 9.1% [(1)]
6 Assets acquired since January 2012
Value identified in prime quality product
with short WALEs
strategy Part 2: develoPment of Prime logistics facilities
total developments (on completion) $313m 17.7 years 7.9% [(2)]
Toll NQX fund through
Erskine Park developments
Portfolio Post develoPments
all assets $1,425m 8.1 years 8.2% [(3)]
(1) Weighted Initial Yield
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• (2) Weighted Capitalisation Rate on Completion

• (3) Weighted Capitalisation Rate

logistics 24 / 57

The GPT Group 2013 Investor Presentation

logistics Next steps

2012

objective

establish logistics platform with end to end capability activate existing land banks grow investment portfolio

outcome

• →Internalised property management

• →Established development capability

• →Dedicated capital transactions team

• →20 leases executed across portfolio

• →Land bank activation commenced

• →$208m of investment product acquired

• →Strong portfolio performance

2013

objective establish delivery capacity deliver existing pipeline projects continue on market acquisitions

outcome

• →Acquisition of $107m of investment product

• →13 leases executed across platform

• →Five new projects valued at approx. $328m committed with average 17 year WALE

• →Development projects valued at $140m on target/completed

• →Development team expanded to 8

• →Strong portfolio performance

2014 outlook

objective continue expansion of platform establish unlisted fund grow committed pipeline to deliver asset strategy for balance sheet and funds

outlook

• →Deliver committed projects for balance sheet and funds

• →Acquisitions to replenish land bank and provide future product

• →Enhance capital partnering →Continue with ‘fund through’ opportunities

• →Continue disciplined acquisitions of investment product

logistics 25 / 57

the gPt group 2013 Investor Presentation increase in fum

26 / 57

The GPT Group 2013 Investor Presentation

earnings comPosition target

10% from funds management fees Secure, stable earnings development profits will not be distributed Development will be used to enhance asset returns and grow FUM

earnings comPosition gPt today

earnings comPosition gPt target

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3%
10%
Funds Management Funds Management
Investment Property Investment Property
→
90%
97%
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earnings composition target 27 / 57

The GPT Group 2013 Investor Presentation

earnings comPosition target

Why 10%?

wacc (caPm) vs. risk rating

the ‘actives’ % inv Prop vs. wacc (caPm)

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9.0
8.5
8.0
7.5
7.0
6.5
0.90 1.10 1.30 1.50 1.70
wacc (%)
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risk rating

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8.9
8.7
8.5
8.3
8.1
7.9
R [2 ] = 0.8112
7.7
7.5
7.3
50 60 70 80 90
% earning from investment ProPerty
wacc (%)
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Defensives

Actives

GPT

earnings composition target 28 / 57

The GPT Group 2013 Investor Presentation

develoPment Enhance and grow

retail & major Projects development objectives:

→ Respond to demand for growth and outperformance

→ Sourcing and creating of assets

→ Confidence around delivery of pipeline

→ Flexible resourcing approach

→ Capacity to enhance M&A opportunities

flexible develoPment model

Variable development activity (e.g. respecting market conditions)

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Responding to
increasing FUM
Minimum Resource and development
Level activity
flexibility
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logistics development objectives:

→ Deliver committed pipeline

→ Increase asset production for balance sheet and funds

→ Broaden market share through ‘fund through’ and ‘development management’ activities

→ Deliver above target risk adjusted returns and enhance growth opportunities

logistics five year targets

target (p.a) Total investment grade $250 million+ assets committed Future project pipeline $500 million+ Project level return 7.5% – 11%

development 29 / 57

The GPT Group 2013 Investor Presentation

funds management Growth strategy

$7.2 billion in funds under management focus on investor returns

end to end capability in all sectors invest, develop, manage

gPt has raised 15% of $10.4 billion raised in the unlisted wholesale core sector since 2010[(1)]

(1) Source: Mercer/IPD Australian Pooled Property Fund Index

mercer/iPd unlisted Property funds index

equity raised – 2010 to 2013

gwof mercer/iPd all ofce index gwscf mercer/iPd all retail index 10.2% 10.9% 4.8% 8.5% 8.6% 1.7% 11.5% 5.5% 8.7% 9.3% 5.7% 8.7%	$m New Equity DRP participation Secondaries Total	gwof 689 248 513 1,449	gwscf 569 56 284 909	total 1,258 304 797 2,358

3 Year 5 Year

1 Year

funds management 30 / 57

The GPT Group 2013 Investor Presentation

funds management Growth strategy

focus on core space, potentially extend to core plus/value add in core sectors clearly defined mandates between funds, targeting different investor segments

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institutional non institutional
fund style investors investors status
GPT Group Balance Sheet Core Continue growth
GWOF Core Continue growth
GWSCF Core Continue growth
Logistics Fund Core Planned 2014 [(1)]
Metropolitan Office Fund Core Planned 2014 [(1)]
New Funds – Sub sectors of core Under development
Capital partners/Clubs – Niche sectors
Closed end Funds
existing
new
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(1) Indicative

funds management 31 / 57

The GPT Group 2013 Investor Presentation

funds management Target additional $10bn of FUM

funds management growth Pathway

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Sep 13 FUM Growth in Metropolitan Logistics New Funds Target FUM Existing Funds Office Fund Fund

Growth will be achieved from existing funds and the establishment of new funds and products

funds management 32 / 57

tThe GPT Groupg tg 2013 Investor Presentation

TiTle of secTion frugal approach and fortress balance sheet

section name 33 / 5 97

The GPT Group 2013 Investor Presentation

frugal aPProach Low Management Expense Ratio

why

mer Peer comparison (%)

inCReaSe PRODuCtivity

ReDuCe COStS

minimise waste focus on invest in invest in the and maximise activities that capabilities future and be maximise critical to ahead of efficiency to enable scalable value success the market growth

how

focus (Stop | go)

Streamline automate Outsource

COntinuOuS imPROvement

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Peer 1 Peer 2 Peer 3 Peer 4 GPT Peer 5 Peer 6 Global
Best
Practice
0.89
0.71
0.53
0.50
0.45 0.47
0.35
0.27
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outcome

maximise total return

increase efficiency in key processes meR < 45bps Positive JaWS

GPT seeks to be hyper-efficient with a sustainable long term MER of less than 45 basis points including reinvestment in growth strategies

frugal approach 34 / 57

The GPT Group 2013 Investor Presentation

fortress balance sheet Significant capacity

a- / a3 / stable credit ratings

key credit measures balance sheet gearing (%)

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interest cover
ratio (x)
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Sep 2013 Bank
Covenant
21.2% 50%
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25% 30% 35%
Sep 2013
Bank
Covenant 5.6x
2.0x
>2.5x
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fortress balance sheet 35 / 57

The GPT Group

2013 Investor Presentation

summary and actions

36 / 57

The GPT Group 2013 Investor Presentation

key messages

driven by total return

non-negotiables for gPt’s strategy → Our business will be property-related

→ Our property asset investments will be in Australia

$10 billion increase in fum

→ Diversified but sector specialists

→ We will maintain a low cost of capital relative to peers

group performance metrics

frugal approach and fortress balance sheet

→ Key metric: Total Return > 9%

→ Secondary metric: Leading Total Securityholder Return

→ Both measured on a 1, 3 and 5 year basis

key messages 37 / 57

The GPT Group 2013 Investor Presentation

the journey ahead

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ahead
→FUM value included in NAV
→Demonstrated organic growth
→Further growth platforms identified
→Price premium
→Maintain low cost of capital
→Increased active earnings
→Significant product for balance sheet and funds
→Income streams from property solutions
→Outperformance
→Opportunistic activity
→$10 billion growth in FUM
→Flexible development model
→Customer centric approach
→Strategic business intelligence capability
→MER < 45 bps
→Funds Management
→Development
→New profit sources
→Capital allocation culture
→Fortress balance sheet
embedded Premium
harvest benefits
strategy activation
growth Platforms established
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driven by total return: target > 9%

the journey ahead 38 / 57

tThe GPT Groupg tg 2013 Investor Presentation

TiTle of secTionPurPose statement

Property to Prosperity

we maximise the financial potential of australian property with solutions that fulfil the aspirations of our investors, tenants and communities

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tThe GPT Groupg tg 2013 Investor Presentation

TiTle of secTion appendices caPability

key market trends shoPPing centre evolution retail develoPment PiPeline logistics growth strategy actions

return benchmarks gPt’s team

section name 40 / 5 97

the gPt group 2013 Investor Presentation

caPability Three pillar approach

CuStOmeR CentRiC aPPROaCH DeLiveRing exCeLLenCe extRaCting neW Revenue StReamS	fOCuS	DeLiveRaBLeS
	→Insights/intelligence →Experience →Engagement →Communication →Productive and proftable →Efciencies in operations →Specialist property solutions →Generate additional recurring active earnings	→Guest Experience Project →People First Program →5 Star Concierge Program →Structured customer engagement program →Growing assets under management →Achieving return targets with a strong focus on optimisation →Sector leading sustainability outcomes

Outperformance through complete property solutions for customers

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The GPT Group 2013 Investor Presentation

key market trends: CaPITaL SOURCES GROwInG

(1) Source: APRA (2) Source: Prequin

offshore trends

domestic trends

→ Strong demand from offshore investors continues for direct acquisitions, clubs and joint ventures → Investors remain underweight their target allocation to real estate

→ Superannuation assets continue to grow at more than 10% per annum → The default allocation to unlisted real estate has nearly doubled since 2004 → Strong demand for core pooled funds with aligned fund terms and strong managers

australian superannuation industry[(1)]

average real estate allocation[(2)]

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Current Allocation
10% 1.50 12%
Target Allocation
10%
8%
1.00 8%
6%
6%
4%
0.50 4%
2%
2%
0% 0.00 0%
04 05 06 07 08 09 10 11 12
Listed Property Allocation Total
Superannuation
Unlisted Property Allocation Assets
Asset Fund Plan
Superannuation SchemePrivate Sector Pension FundInsurance CompanyManagerPublic Pension Endowment Foundation Wealth FundSovereign
allocation
default investment
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imPlications: GPT is well positioned to capture growth

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The GPT Group 2013 Investor Presentation

key market trends: RETaIL

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The increasing
popularity of the
Australian market
for overseas retailers
e.g. Apple, Zara
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Leakage of retail consumption to online retailers via accelerated online shopping growth

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Key Retail Trends
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A narrowing of the price differential between online and in-store retail due to greater price discovery and transparency

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The impact of
retirement on income
and expenditure
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The selling of products through both online and bricks and mortar stores

key Point: Structural and cyclical trends in retail are likely to result in lower sales growth in the short to medium term

imPlications: GPT is evolving the retail mix and improving the shopping centre experience to capture greater share of retail wallet

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The GPT Group 2013 Investor Presentation

key market trends: OffICE

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Adoption of denser
work space ratios
Provision of alternative
through fit-out or
working arrangements move to ABW
Densification
to accommodate a
diverse and changing
workforce
Migration of work to
lower cost markets
Flexible work Offshoring Likely to extend
beyond back office
practices
process to more highly
Key Office Trends skilled functions
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Key Office Trends
Sustainability Inter-market
movements
Continued adoption
of sustainable real
estate by tenants
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Movement of office
staff between CBD and
satellite CBD and office
park locations
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key Point: Offshoring and densification represent the two most significant structural changes

imPlications: GPT is adapting, diversifying and enhancing its quality portfolio

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The GPT Group 2013 Investor Presentation

key market trends: LOGISTICS

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Specialisation of
facilities to
Supply chain
accommodate fast
efficiencies
moving goods
Potential conversion
of inner and middle
ring facilities to Implications of Consolidation
e-commerce of warehouses
warehouses/locker
facilities
Key Logistics
Trends
Land side
Decline in
capacity
manufacturing
constraints
‘Last mile’
challenges
Obsolescence of
manufacturing facilities
Conversion to warehouse
and distribution
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Greater focus on
location attributes
and cost efficiencies
Increased specialisation
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Move towards larger,
more specialised
facilities to reduce costs
Increase in container
movements by rail
Move to multi-modal
facilities
Changing inner and
middle ring logistics
facilities towards
“satellite” hubs
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key Point: Supply chain challenges to result in continued focus on location and building efficiencies

imPlications: GPT is creating and acquiring assets around multi-modal locations and flexible logistics solutions

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The GPT Group 2013 Investor Presentation

australian retail Shopping Centre Evolution

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retail 46 / 57

The GPT Group 2013 Investor Presentation

retail $1.4 billion development pipeline

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% underway master Planning
Wollongong 100 $200m
Chirnside 100 $65m
Woden 50 $100m
Macarthur 50 $120m
Casuarina 50 $150m
Parkmore 100 $125m
Casuarina 50 $150m
Rouse Hill 100 $250m
Sunshine Plaza 50 $200m
gwscf
gPt
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The GPT Group 2013 Investor Presentation

logistics Successful growth strategy gPt has been growing and strengthening its capability with great success

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eastern creek,
silverwater
Completion of acquisitions 3 Figtree Drive Commence
5 Murray Rose SOP acquisition, developments
SOP, $70m $54m $19m $313m
Industrial
growth strategy
commenced
feb 12
dec 12 oct 13
jan 12 aPr 12 aug 12 aPr 13 jul 13 2013 +
yennora
citiport toll nqx and yatala
acquisition development acquisitions
$60m $84m $88m
acquisition & $1,425m
develoPment
$1,025m
acquisition
$832m
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The GPT Group 2013 Investor Presentation

actions Driven by Total Return

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from to actions
→Focus on creating →Focus on maximising →Refined capital
and sustaining financial potential allocation process
→Tight constraint on →More opportunities →New business intelligence
weightings and asset type to create value team established
→Research capability →Business intelligence →Flexibility around
capability portfolio mix
→Portfolio management
→Traditional →Holistic capital allocation →Retail: Transition assets
to become major activity
development model →Core skill base with flexibility
or town centres
→Asset centric approach →Customer centric approach
→Office: Relevant scale
and diversification
→LBP: Build scale,
diversification and
expertise
→Restructure Retail & Major
Projects development
team to flexible model
→Expand logistics
development capabilities
→Additional recurring
active earnings from
property solutions
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The GPT Group 2013 Investor Presentation

actions $10 billion increase in FUM

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from to actions
→3% of earnings →10% of earnings →Grow FUM by $10 billion
→Launch logistics fund
→Launch metropolitan
office fund
→Increase growth capacity
through acquisitions
→Review niche sectors
for specialisation
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The GPT Group 2013 Investor Presentation

actions Frugal approach and fortress balance sheet

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from to actions
→Cost reduction programs →Frugal approach with →Further reduction in
MER < 45 bps discretionary spend to
→Driven by
achieve MER targets
earnings growth →Driven by
total return →Measure and reward
→Disciplined capital
on Total Return
management →Fortress
balance sheet →STI to be based 100%
on Total Return
→Maintain capacity on
balance sheet to take
advantage of value
add opportunities
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The GPT Group 2013 Investor Presentation

return benchmarks

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area metric target
group – primary goal Total Return 9.0% measured over
1, 3 and 5 years
group – other Total Security holder Return Leading relative TSR
(1, 3 and 5 years)
Property Total Property Return 9.0%
Top quartile performance
against Regional Retail,
Prime Office and Prime
Industrial IPD indices
management expenses MER <45 basis points
funds management EBIT Margin >55%
developments Development margin Assessed on risk
of the project
third party fees EBIT Margin >25%
Stabilised EBIT Margin >20%
new Profit sources
or ROCE as appropriate
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Total Return will be the key performance metric for GPT

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tThe GPT Groupg tg 2013 Investor Presentation

gPt’s team A highly capable team with a wealth of experience

investment management

carmel hourigan, cio

brett williams, head of david burgess, head of investment – retail and investment – office & deputy head of im logistics

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More than 20 years of experience in the property and funds management industry. Previous roles as Managing Director of Lend Lease’s investment management business and CEO of Lend Lease’s managed funds – the Australian Prime Property Funds.

Over 20 years experience in the property industry working with AMP, Lend Lease and GPT in various roles including property management, valuation, development and acquisitions.

20 years of property and equity markets experience including property valuation roles across a number of jurisdictions and asset classes, followed by equity research roles at Credit Suisse and Citigroup.

appendix 53 / 57

tThe GPT Groupg tg 2013 Investor Presentation

gPt’s team A highly capable team with a wealth of experience

asset management

matthew faddy, head of asset management

vanessa orth, deputy head of asset management

luke briscoe, national director – leasing office & logistics

bruce sedgwick, national director – leasing retail

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Over 20 years experience in the real estate and finance sectors, responsible for leading a team of more than 250 people, setting and delivering retail, office and logistics asset strategies. Previous roles as Fund Manager for GWSCF, COO for Retail at Lend Lease and at PwC.

More than 15 years in a number of centre management and regional roles. Previous roles as National Director Retail and Divisional Director Retail at GPT.

Over 16 years experience in the real estate industry. Previous roles as Office Investment Manager and Associate Director Leasing at Colliers.

Over 25 years in the property industry. Previous roles as Project Director Development Leasing, Leasing Director at JLW and National Leasing Manager Retail at Lend Lease.

appendix 54 / 57

tThe GPT Groupg tg 2013 Investor Presentation

gPt’s team A highly capable team with a wealth of experience

funds management

nicholas harris, head of funds management

hamish roth, head of Private capital, funds management

martin ritchie, fund manager – gwof

michelle tierney, fund manager – gwscf

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Involved in the Australian property and property funds management industry for over 20 years, including seven years with BT Funds Management Limited and five years with Lend Lease as Fund Manager of the Lend Lease Real Estate Partners series of funds.

Involved in the Australian and global real estate and finance industries for over 20 years in both the public and private markets. Previously at NAB, AMP Capital Investors and Jones Lang LaSalle.

GWOF Fund Manager since 2006 fund inception and has 25 years experience in commercial real estate. Previously Head of Office Portfolio and at Knight Frank as Director, Management and Leasing.

More than 20 years shopping centre experience covering a broad spectrum of roles from marketing to management and leasing. Has previously held roles as Head of Property & Asset Management, GM – Retail Management and National Leasing Manager.

appendix 55 / 57

tThe GPT Groupg tg 2013 Investor Presentation

gPt’s team A highly capable team with a wealth of experience

development

anthony mcnulty, head john thomas, head of development – retail of development & major Projects – logistics & business Park development

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25 years of experience in the property industry both in Australia and overseas. His past experience includes the major redevelopments of Penrith Plaza and Melbourne Central, the award winning Rouse Hill Town Centre and One One One Eagle Street.

28 years of experience across the investment and development sectors of the property industry. Previous role as Managing Director and CEO of Investa Property Group.

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The GPT Groupt g tg 2013 Investor Presentation

gPt’s team A highly capable team with a wealth of experience

business optimisation and corporate development

mark fookes, cfo

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More than 20 years of experience in the property industry. Previous roles at GPT included Head of Investment Management and Head of Retail. Prior to GPT Mark was Head of Retail (Asia Pacific) at Lend Lease and General Manager of Retail Property Management and Leasing.

anastasia clarke, deputy cfo

michael o’brien, group executive corporate development

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Joined GPT in 2009. More than 20 years Previous roles as Group experience in the Treasurer, CFO of New property sector. City, a Japanese real Previous roles included estate company, CFO and COO at GPT. Head of Finance and Michael also held a Treasurer at Dexus and variety of roles at Lend corporate treasury and Lease including CEO project finance roles at of the retail business Lend Lease. managing GPT’s retail portfolio.

Phil taylor, head of People & Performance

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17 years experience in human resources in the banking and finance sector including 10 years within the real estate funds management industry.

james coyne, general counsel & company secretary

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In the role since 2004, his previous experience includes company secretarial and legal roles in construction, infrastructure and the real estate FM industry, both listed and wholesale.

appendix 57 / 57