FY2011 Financial Results David Blight 29 August 2011 Results - PowerPoint PPT Presentation

FY2011 Financial Results David Blight 29 August 2011

Results highlights Backdrop: continuation of tough financial market conditions   Operating profit after tax of $3.0 million Solid progress on key issues: Europe, property for income funds  Successful IHF acquisition (settled August 2011), AREIT Fund growth   Platform strong Actively pursuing new opportunities  2

Summary FY2011 financial results FY2011 FY2010 Change $000s $000s Revenue total 20,970 19,987 ▲ 4.9% Operating profit after tax 1 3,044 2,010 ▲ 51.4% Statutory profit / (loss) after tax (5,297) (5,224) ▼ 1.4% Operating EPS 2 2.00 cents 1.44 cents ▲ 38.9% Statutory EPS (3.88) cents (4.48) cents ▲ 13.4% Dividends (per share) 1.25 cents 1.25 cents – Funds under management (FUM) 3 $2.253 billion $2.496 billion ▼ 9.7% Notes 1. Refer appendices for reconciliation of operating profit to statutory (IFRS) profit 2. Basic earnings per share based on operating profit after tax 3. Closing figures as at 30 June in relevant year 3

Summary FY2011 financial results – balance sheet Net tangible asset backing per share June 2011 30.0 June 2011 June 2010 Change 24.0 (0.1) (4.2) $000s $000s 25.0 Tangible Assets 38,056 32,626 ▲ 16.6% 19.6 20.0 A$ cents per share Intangible Assets 227 7,203 ▼ 96.8% 17.0 ▼ 3.9% 15.0 Total Assets 38,283 39,829 Liabilities 1 6,778 5,819 ▲ 16.5% 10.0 ▲ 16.7% Net Tangible Assets (NTA) 31,278 26,807 Cash Cash 5.0 ▲ 2.1% NTA per share (cents) 19.6 19.2 - Total Assets Intangible Liabilities Net Tangible Share Price³ Assets Assets Balance sheet sound with $15.4 million in cash and no debt 2 Notes 1. Liabilities – includes trade and other payables and provisions 2. Cash reduced by $3.6 million post June 2011 balance date due to completion of IHF management rights transaction 3. APN share price information as at market close 30 June 2011 (Source: Bloomberg) 4

Funds under management 4,500 4,000 3,500 3,000 Listed Funds 2,500 $ million Private Funds 2,000 Real Estate Securities 1,500 Direct Funds 1,000 500 Europe - Jun 2008 Dec 2008 Jun 2009 Dec 2009 Jun 2010 Dec 2010 Jun 2011 Jun 2011 (inc. IHF)¹ FUM stabilising – securities funds inflows helping to offset EU reduction Notes 1. 30 June 2011 plus IHF - management rights acquired August 2011 5

Group business structure APN Property Group Limited FUM $2,452m 1 18 funds Growth engines Real Estate Securities Listed Funds Europe Private Funds Direct Funds Australia Asia  Fixed term  Open ended  Open ended  Open ended  Fixed term  Open ended and fixed Institutional / industry Retail investors Institutional / high net Institutional and retail Institutional and retail term funds      fund investors Australian funds worth investors investors investors Institutional and retail    Australian  FUM $991m  FUM $24m  FUM $199m  FUM $412m investors FUM $673m developments  6 funds  1 fund  1 fund  3 funds  5 funds  FUM $153m 2 funds  Notes 1. Includes IHF – management rights acquired August 2011 6

Real Estate Securities – Australia FUM 2000 1,675 APN AREIT Fund  Net inflows $94 million for FY11 1500  Net inflows since inception (January APN AREIT Fund APN Property for $ million 903 938 991 2009) in excess of $150 million 1000 Income Fund  Performance since inception 17.0% pa 500 (versus index of 7.7% pa) 1 $6.6m $581.8m 0  Low volatility of returns relative to index Jun 08 Jun 09 Jun 10 Jun 11  100% liquid Annuity Style Revenue  Currently yielding 8.8% pa 2 8.2 9.0 7.3 7.2  Highly rated by researchers $ million 6.0 APN Property for  Re-opened for applications 3.0 Income Funds  Limited liquidity option (Managed - Redemption Offer) introduced in Jun 09 Jun 10 Jun 11 December 2010 June 2011 FUM breakdown by fund  Steady progress toward longer term 566 liquidity solution 600 $million 400 Other funds  Funds terminated 237 153 200  Returning capital to investors 35 0 PFIF PFIF2 AREIT Other Notes 1. To 30 June 2011 2. Based on 30 June 2011 unit price of $1.1796 versus distribution rate on an annualised basis 7

Real Estate Securities – Asia  ARA Asian Asset Income Fund APN AREIT Fund APN Property for  Acquired by APN in August 2010 Income Fund  Institutional / High Net Worth product $6.6m $581.8m  Total return of 20.3% for the year to June 2011  100% liquid  Currently yielding 13% pa  FUM steady since acquisition  Targeting new investors in FY2012  Full time team of 4 personnel  Singapore office established 8

Direct Real Estate Funds FUM 800 APN National Storage  Debt refinanced with NAB and Gresham 572 Property Trust  Deed of Cooperation with tenant to 600 455 445 412 facilitate refinance $ million 400  Distributions recommenced at 0.50 cpu per quarter 200  Valuations stabilised 0 APN Property Plus  Long term leases to Woolworths and 7- Jun 08 Jun 09 Jun 10 Jun 11 Portfolio Eleven Annuity Style Revenue 3.0  FY11 distribution yield on original 2.4 investment 9.00% pa 2.0 1.8 2.0 $ million APN Retirement  Portfolio sold to Lend Lease in March 1.0 Properties Fund 2011 -  Total return since inception (June 1999) Jun 09 Jun 10 Jun 11 of 13.1% pa June 2011 FUM breakdown by fund APN Regional  Valuations stabilised 271 300 Property Fund  $250,000 amortised per quarter from 200 earnings $ million 57 84  Strategic options under review 100 0 National Storage Property Plus Portfolio Regional Property Fund Property Trust 9

Private Funds FUM (Equity) 200 APN  Fully invested 158 159 153 127 Development 150  Australian institutional investors $ million Fund No 1 100  567 Collins Street, (joint venture with Leighton Properties) a prime vacant development site in the 50 Melbourne CBD with approval for 55,000m² office 0 development Jun 08 Jun 09 Jun 10 Jun 11  The Capitol, South Yarra (joint venture) a prime Annuity Style Revenue mixed use development site on the corner of Toorak 6.0 Road and Chapel Street, Melbourne 4.8  Graystone Group: a property development and 4.0 $ million 2.8 investment company, specialising in business 2.4 technology park developments in Queensland 2.0 APN  Fully invested - Development  Australian institutional investors Jun 09 Jun 10 Jun 11 Fund No 2  150 Collins Street, Melbourne: a prime commercial development site in Melbourne CBD with approval June 2011 FUM breakdown by fund for a 20,000m² office development 150 99  Industry Village, Port Melbourne: a 3.3ha site 100 $ million located less than 2km from the Melbourne CBD, 54 being subdivided and redeveloped as light industrial 50 and office 0 Development Fund No 1 Development Fund No 2 10

European Real Estate Funds APN European  Debt restructure and asset sale program FUM Retail Property announced March 2011 to run until November 2000 Group (AEZ) 2012 1,535 1,308  Partial fee deferral, full cost recovery remuneration 1500 basis $ million 954 1000 673 APN Vienna  Shopping Centre Nord continuing to perform Retail Fund robustly 500  Fund expiry October 2013 0  Recommenced distributions Jun 08 Jun 09 Jun 10 Jun 11 APN Poland  Manhattan Shopping Centre showing improved June 2011 FuM breakdown by fund Retail Fund trading performance 600  Fund expiry December 2011. Fund extension to optimise asset sale prospects under consideration 400 400 $ million APN Champion  Carrefour supermarket portfolio continuing to 139 Retail Fund perform relatively well 200 92 42  Greek market very challenging 0  Fund expiry October 2013 AEZ Vienna Poland Champion Notes 1. Euro Property Fund not shown in FUM breakdown (excluded as cross-investment into European syndicates) 11

New healthcare real estate platform  APN appointed responsible entity of the ING Real Estate Healthcare Fund on 12 August 2011  Only listed Australian healthcare fund $199 in assets under management  Occupancy (by income) 98.8%  WALE 11.6 years  Management team joined APN with significant co-investment  in the management vehicle Attractive sector prospects:  Key stats Ageing population growing  AREIT listed on ASX under code IHF Technology driving more health solutions  $186 million in property assets in Victoria and Queensland Healthcare industry continuing to experience significant  Occupancy (by income) 98.8% growth WALE 11.6 years Distribution yield of 8.0% pa 1  Government support direct and indirect 100% tax deferred (for 30 June 2011 distribution)  High quality tenant universe  Attractive lease structures Notes 1. Calculated as IHF security price of $0.81 at close of trading on 30 June 2011 versus 30 June 2011 half year distribution, annualised 12