GPT 2013 SEPTEMBER QUARTER <<<<<<<< RESULT UPDATE 1 1
SEPTEMBER QUARTER HIGHLIGHTS Delivering on core property principles Gu Guidance u e upgraded ed Lo Low gear aring w wit ith Rob obust p por ortfoli lio o target eting a g at least st $2.8 .8 b billi lion metric ics m main aintain ined 6% 6% E EPS g S growth for 2013 2013 cap apac acit ity (1) 1) GW GWOF and nd GW GWSCF th the be best t GWSCF succes GW essfull lly r raised ed performing fund unds i in n the he $178 m 178 million, w with $569 m 569 million n Mer ercer er/IPD PD Unlisted ed Po Pooled ed raised o over t the he l last 12 12 mont nths hs Property Fund und Ind Index Highp hpoint nt e expans nsion n GPT leadership position in sustainability deliv ivered s sig ignif ific icant continues as evidenced by Green Globe awards, DJSI Sustainability Index and GRESB results reval aluati ation u uplift (1) Includes investment capacity of GWOF and GWSCF 2 2 2
INVESTMENT MANAGEMENT Resilient portfolio maintains solid fundamentals PORTFOLIO SUMMARY As a at 30 30 Sept eptem ember ber 2013 2013 Por ortfol olio o Size WALE LE Oc Occupa pancy WAC ACR Retail $4.4bn 4.3 years 99.6% 6.00% Office $2.8bn 5.4 years 95.4% (1) 6.78% Logistics & Business Parks $1.0bn 5.6 years 95.4% 8.27% Total $8.3bn 4.9 years 96.8% 6.51% (1) Includes Heads of Agreement 3 3 3
RETAIL Occupancy levels remain steady 30 30 Sep 2013 ep 2013 (2) 30 Jun 2013 Comparable total centre sales growth (1) 0.3% 1.0% Comparable specialty sales growth (1) 0.8% 1.1% Specialty sales psm (1) $9,174 $8,984 Specialty occupancy costs (1) 18.2% 18.2% Occupancy rate 99.6% 99.5% Weighted average capitalisation rate 6.00% 6.03% (1) Includes GPT and GWSCF assets and excludes Homemaker assets and assets under development. Growth is for the 12 months compared to the prior 12 months 4 4 4 (2) Erina Fair divested and excluded from 30 Sep 2013 analysis
RETAIL The cautious consumer environment remains Comparable C e Change i e in Annual Retail S Sales G es Grow owth b by Categ egor ory 10% 8.1% 8% 6% 4.5% 4.0% 3.5% 4% 1.2% 2% 0.8% 0.8% 0.3% 0% -0.1% -2% -1.0% -1.0% -1.5% -2.7% -4% -4.8% -6% -8% -7.8% -7.9% -10% Total Centre Dept Store DDS Supermarket Mini & Other Majors Other Retail Total Specialties Retail Services Food Catering Mobile Phones Apparel Food Retail General Retail Homewares Leisure Jewellery Specialties breakdown Note: Includes GPT and GWSCF assets and excludes development impacted centres. Growth for the 12 months compared to the prior 12 months. 5 5 5
RETAIL Early indications of growth driver improvement Supp pportive m mone netary p poli licy a and we d weaker d doll llar Stable e e econom omic g grow owth a anticipated ed Cash Rate and Exchange Rate (1) IMF Australian Economic Growth Forecast (2) Annual Real GDP Growth Cash Rate (LHS) 5% Forecast $A/$US (RHS) 8% 1.2 7% Exchange Rate 4% Cash Rate 1.0 6% 0.8 3% 5% 4% 0.6 2% 3% 0.4 2% 1% 0.2 1% 0% 0.0 0% 2003 2005 2007 2009 2011 2013 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Cons nsum umer we wealt lth i h impr proving Con onsu sumer er s sentiment st stabilisi sing House Prices and S&P/ASX 200 (3) Consumer Sentiment and Retail Sales Growth (4) Australian Retail Turnover (LHS) House Prices (LHS) Moving annual % change 10% 130 Moving Annual Growth Consumer Sentiment (RHS) 60% 25% Moving Annual Growth ASX 200 (RHS) 8% 120 40% 15% Index 6% 20% 110 5% 4% 0% 100 -5% 2% -20% 90 -15% 0% -40% -2% 80 -25% -60% 2003 2005 2007 2009 2011 2013 2003 2005 2007 2009 2011 2013 (1) Data source: RBA Oct-13 (2) Data source: IMF World Economic Outlook Oct-13 (3) Data source: ASX, monthly rests. ABS Established Houses Index (weighted average of 8 capital cities), quarterly rests 6 6 6 (4) Data source: Westpac-MI Consumer Sentiment Index, base index=100. ABS Retail Trade, seasonally adjusted
OFFICE Portfolio metrics remain solid 30 30 Sep 2013 ep 2013 30 30 Jun 2013 2013 Occupancy (including terms agreed) 95.4% 95.2% Weighted average lease expiry 5.4 years 5.6 years 26,110 sqm 19,310 sqm Leases signed during the quarter Terms agreed at period end 16,790 sqm 27,560 sqm Weighted average capitalisation rate 6.78% 6.78% Office P e Portfol olio L o Lease E se Expiry P Prof ofile ( e (by A Area) 16% 12% 12% 11% 9% 8% 7% 6% 6% 5% 5% 3% Vacant 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ 7 7 8
OFFICE Solid work on retaining existing tenants Solid activity year to date with 72,840 sqm of signed leases Renewals representing 78% of September quarter 2013 leasing activity LEASING TRANSACTIONS Ass sset St Statu tus Te Tenant Sqm qm Te Term 8 Exhibition Street Signed Lease UBS 4,950 sqm 12 years Brisbane Transit Centre Signed Lease Australia Post 4,160 sqm 5 years Melbourne Central Tower HoA Rigby Cooke 2,230 sqm 10 years Riverside Centre Signed Lease Marsh 1,870 sqm 5 years 2 Park Street Signed Lease Chubb 1,740 sqm 7 years 8 8 9
OFFICE Demand showing signs of improvement Leading indicators suggesting space markets passing the trough NAB business confidence survey showing stages of improvement on a rolling twelve month basis – Prime grade net absorption for Eastern Seaboard CBD average starting to recover from a three – year decline Strongest quarter of net absorption in Q3, since mid 2009 – On a rolling 12 months basis, the ANZ job ads has also turned up from its decline and has been – increasing for the last 3 months NAB Business Confidence Survey (1) Eastern Seaboard CBDs: Prime Grade Net Absorption (2) Quarterly Growth 500,000 15 Annual Growth 450,000 10 400,000 350,000 5 300,000 Square Metres 250,000 0 200,000 -5 150,000 100,000 -10 50,000 0 -15 -50,000 -20 -100,000 Dec 03 May 04 Oct 04 Mar 05 Aug 05 Jan 06 Jun 06 Nov 06 Apr 07 Sep 07 Feb 08 Jul 08 Dec 08 May 09 Oct 09 Mar 10 Aug 10 Jan 11 Jun 11 Nov 11 Apr 12 Sep 12 Feb 13 Jul 13 -150,000 -200,000 Jun 03 Dec 04 Jun 06 Dec 07 Jun 09 Dec 10 Jun 12 Dec 13 (1) Data source: GPT and National Australia Bank. Rolling annual monthly results aggregation (2) Data source: GPT and Jones Lang LaSalle. Q3 2013 9 9 10
LOGISTICS & BUSINESS PARKS Stable portfolio metrics 30 30 Sep 2013 ep 2013 30 Jun 2013 Occupancy 95.4% 98.5% Weighted average lease expiry 5.6 years 5.4 years Leases signed during the quarter 37,580 sqm 36,750 sqm Weighted average capitalisation rate 8.27% 8.27% Logistics a s and B Busi sines ess P s Parks L s Lease se Expiry (By A Area) 31% 17% 14% 13% 7% 6% 4% 3% 3% 1% 1% 0% Vacant 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ 12 10 10
LOGISTICS & BUSINESS PARKS Demand driven by logistics companies Industrial Project Completions (1) Supply and demand forecast for CY13 3.0 Total Gross Lettable Area Under Construction likely to be near 10 year averages Completed 2.5 (milllon sqm) and at a similar level to 2012 2.0 1.5 Logistics providers and major 1.35 0.50 1.0 retailers continue to provide the 0.83 0.5 majority of leasing demand 0.0 2007 2008 2009 2010 2011 2012 2013 (f) Industrial Leasing Activity (by industry sector) (1) Overall rents have modestly Manufacturing Wholesale & Retail Trade increased during the third quarter 2,500,000 Transport and Storage Other 40% 35% and over the past 12 months 2,000,000 22% 30% 1,500,000 25% 16% Evidence of cap rate tightening for 26% 20% 1,000,000 30% 15% prime product with solid lease 27% 39% 10% 500,000 covenants 25% 5% 15% - 0% 2007 2008 2009 2010 2011 2012 2013 Avg. YTD (1) Data source: GPT and Jones Lang LaSalle. Q3 2013 13 11 11
LOGISTICS & BUSINESS PARKS Two new acquisitions in logistics Quar arry Road ad, Y Yat atal ala, Q QLD LBP BP Portfol olio o Grow owth S Summary $44.5 million In Jan 2012 – $0.8 billion portfolio Prime logistics facility in SE QLD At Sep 2013 – $1.4 billion (including developments) Built in 2009 Have undertaken $307 million in acquisitions Three tenants with a 2.4 year WALE Current developments total $313 million Initial Yield 10.09% Seeking further value add opportunities Pine R e Roa oad, d, Y Yen ennor ora, NSW $43.6 million Strategically located logistics facility Fully leased to DB Schenker with a 2.3 year WALE Initial Yield 9.43% Quarry Road, Yatala, QLD Pine Road, Yennora, NSW 13 12 12
FUNDS MANAGEMENT Both Funds continue to perform strongly GW GWOF GWSCF GW 10.8% one year total return 11.3% one year total return Ranked highest in the Mercer/IPD Unlisted Number 1 performing office fund over Property Fund Index over one year one, three and five years Successfully raised $178m of equity, 2nd overall fund in the Mercer/IPD completing the $500m target capital Unlisted Property Fund Index over one raise with a total of $569m raised year Gearing reduced to 16.4% Global leader (listed and unlisted) in the 2013 Global Real Estate Highpoint cap rate compression Sustainability Benchmark (GRESB), resulting in an upward revaluation out of 543 entries of $42m GPT internalised the property Achieved global number 6 ranking, and management of eight GWOF assets number 1 for retail in GRESB 14 13 13
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