GMT Investor Briefing

Level 2, 18 Viaduct Harbour Avenue, Auckland | PO Box 90940, Victoria Street West, Auckland 1142
Tel +64 9 375 6060 | www.goodman.com/nz



nzx release+
GMT Investor Briefing
Date 12 March 2018
Release Immediate
A briefing for institutional investors and analysts is being held at Highbrook Business
Park today.
A copy of the presentation has been provided to the NZX.

For further information, please contact:

John Dakin Andy Eakin
Chief Executive Officer Chief Financial Officer
Goodman (NZ) Limited Goodman (NZ) Limited
(09) 375 6063 (09) 375 6077
(021) 321 541 (021) 305 316


James Spence
Director Investment Management
Goodman (NZ) Limited
(09) 903 3269
(021) 538 934

About Goodman Property Trust:
GMT is an externally managed unit trust, listed on the NZX. It has a market capitalisation of around $1.7 billion, ranking it
in the top 20 of all listed investment vehicles. The Manager of the Trust is a subsidiary of the ASX listed Goodman
Group, Goodman Group is also the Trust’s largest investor with a cornerstone unitholding of 21%.
GMT is New Zealand’s leading industrial and business space provider. It has a substantial property portfolio, with a value
of $2.6 billion, which accommodates around 200 customers. The Trust holds an investment grade credit rating of BBB
from Standard & Poor’s.

---

BRIEFING
INVESTOR
Goodman Property Trust 2018

Presenters:
John Dakin
Chief Executive Officer
James Spence
Director - Investment Management
Michael Gimblett
General Manager Development
Kimberley Richards
Director - Investment Management
& Capital Transactions
Andy Eakin
Chief Financial Officer
Goodman Overview3
Global Trends11
GMT Investment Strategy17
Development Programme32
VXV Precinct44
Balance Sheet Strength51
Summary58
CONTENTS
02
12 MARCH 2018

0 3
BUSINESS MODEL
Goodman is a global industrial property group. It owns, develops and manages
industrial real estate, including logistics facilities, warehouses and business parks,
in 16 countries.
Goodman’s success is founded on:
The quality and
integrity of our people.
Our unrivalled knowledge
of the industrial property
markets in which we operate.
The long-term
relationships we build
with our customers.

0 4
GOODMAN STRATEGY
＋Goodman has a global footprint with investments and managed funds in Asia,
Australia, Europe, NZ, UK, the US and Brazil
＋established investment partnerships with international investors
＋managed fund structure preferred by these partners
＋major urban centres within growing consumer markets
＋capitalising on growth in e-commerce and technological change
＋strategic land holdings provide development pipeline and urban regeneration
opportunities
＋low debt level provides balance sheet strength
global footprint
investment focus

0 5
INVESTMENT MANAGEMENT
PHILOSOPHY
＋long-term strategic partners have invested across a range of structures including
partnerships, JV’s and clubs
＋focus on maximising real estate returns by region manages competing interests
＋portfolio approach leverages market position for all stakeholders
＋Goodman cornerstone typically 20-25%
＋Goodman works with its partners to establish an optimal governance structure
＋vehicles typically have an Investment Committee to make key decisions and monitor
vehicle strategy / budget
＋detailed reporting framework
＋where appropriate vehicles have majority independent boards
structure
corporate governance

0 6
INVESTMENT PARTNERS
＋16 geographic funds investing
in high quality real estate
＋AUD$34.6 billion assets under
management (US$27.0 billion)
＋remuneration linked to fund
performance

0 7
GLOBAL RELATIONSHIPS
wide customer base

0 8
ALIGNMENT OF INTERESTS
＋Goodman Group holds a 21.2% cornerstone in Goodman Property Trust (“GMT”),
consistent with its global fund platform strategy
＋Board maintains a majority of independent directors, who are required to hold the
equivalent of two years fees in GMT units
＋fee structure requires that:
-fund management fees are used to subscribe for new units
1
-any performance fee earned is also used to subscribe for new units
2
＋New Zealand staff remuneration includes a long term incentive component that is paid
by the Manager in GMT units
＋performance rights in GMT, awarded to staff but not yet vested, total 15.2 million units
highly aligned Manager
highly aligned people
1
Until FY19 and at the discretion of the independent directors.
2
At the discretion of the independent directors.

0 9
GMT FEE STRUCTURE
＋GMT’s fee structure has led the market for externally managed vehicles, key
features include:
-tiered fund management fee
-a performance fee component based on relative total return with carry
forward of any under / over performance
-property service fees and development service fees
＋service fees are periodically reviewed by the Independent Directors through an
industry benchmarking exercise undertaken by external consultants
＋the management expense ratio for the Trust was 0.44% of average property
assets in FY17, well below the market average
competitive basis
external review

10
BUSINESS FUNCTIONS
＋core business functions are kept in house to maintain direct customer
relationships and to ensure high quality service delivery
＋approximately 60 FTE staff work in the city and satellite offices, the average
tenure is 5.6 years
＋portfolio, asset, property and building managers
＋development managers, project managers, co-ordinators and engineers
＋accountants, finance managers, treasury and lease administration
＋funds management, capital transactions, forecasting and modelling, IR, legal,
marketing and business administration
inhouse management
specific roles

11
GLOBAL
TRENDS
CourierPost, HighbrookBusiness Park

12
GATEWAY CITIES
＋four billion people live in cities,
this is expected to surpass six
billion by 2045
＋feature main port, rail and air
transport infrastructure
＋attract people, capital and
innovation
＋consumers in large cities are
expected to account for 81% of
global consumption and
generate >90% of global
consumption growth
Locations where Goodman is focusing its investment

13
＋global retail spending is
expected to grow 27% to
US$28.9 trillion by 2021.
＋e-commerce sales are expected
to grow by more than 70%, to
US$4.5 trillion over the same
timeframe
Global E-Commerce Sales Forecast 2016-2021
Excludes travel and event tickets / US$ trillions
e-COMMERCETRENDS
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
$0.0tn
$0.5tn
$1.0tn
$1.5tn
$2.0tn
$2.5tn
$3.0tn
$3.5tn
$4.0tn
$4.5tn
$5.0tn
201620172018201920202021
retail e-commerce sales% change% of total retail sales
Source: emarketer2017

14
＋growth in online sales increasing demand for distribution space
＋supply chain pressures with faster and cheaper deliveries required, shorter
product life cycles, increased transportation costs
＋highlights the importance of locations close to the consumer
＋modern warehousing provides operational efficiencies, driving customer demand
＋more labour intensive than traditional warehouse distribution operations
＋mature e-commerce operators taking fulfilment logistics in-house
property trends
e-COMMERCE

15
INDUSTRIAL PROPERTY
TRENDS
Goodman QingpuCentre, ShanghaiGoodman Business Park, Tokyo
multi-storey industrial

16
robotics and automation
INDUSTRIAL PROPERTY
TRENDS
Amazon Fulfilment Centre, Colorado
https://www.youtube.com/watch?v=14z_zk2QEBs

HighbrookBusiness Park
17
GMT INVESTMENT
STRATEGY

＋GMT predominantly invested
in Auckland industrial
locations
＋high quality portfolio
＋asset sales have provided
significantbalance sheet
capacity
GMT OVERVIEW
Auckland
~99%
Christchurch
~1%
$2.6bn
1
total property
portfolio
98.2%
property
occupancy
6.2 years
WALT
$1.7bn
2
market
capitalisation
32.4%
3
Loan to value
ratio (look
through
basis)
200+
customers
1m sqm
Net lettable
area
6.5%
weighted
average
capitalisation
rate
1
TotalpropertyportfolioincludesGMT’sproportionatesharein thepropertiesownedbyitsViaductjointventure.
2
MarketcapitalisationofGoodmanPropertyTrustOrdinaryUnitsasat8 March2018.
3
Ona proportionatelyconsolidatedbasisincludingGMT’sinterestsin itsViaductjointventure.
18

＋high quality portfolio situated in key industrial locations close to consumers and benefitting from
new infrastructure
＋assets actively managed to maximise earnings, value and balance sheet strength
＋rental reversion potential assessed at 2.5%, market review structures incorporated into new leases
＋value adding opportunities with a number of estates held significantly below replacement cost
＋development programme improving asset quality and growth profile of GMT
＋balance sheet capacity expected to support build out of remaining land holdings
＋new land opportunities difficult to secure with cyclically high values
property portfolio
development led growth
targeting
STRATEGIC FOCUS
＋increased growth in rental cashflows and cash earnings
＋the completion of the current development programme
＋creation of a lower capex portfolio
＋resilient portfolio with the balance sheet capacity to be opportunistic should markets turn
19

＋greatestpopulation and
commercial heart of the country
＋geographically constrained
＋largest property market
＋demographic forecasts show
differential growth over the next
30 years
＋major infrastructure projects
underway
AUCKLAND LOCATIONS
20

WHY INDUSTRIAL?
Unique characteristics include:
＋flexibility of design suitable
for range of uses
＋growing logistics sector, due
to urbanisation and
consumer trends
＋lower lifecycle costs
＋high land component
＋industrial occupiers more
resilient through economic
cycles
＋smaller asset sizes means
more liquid investment
market
Source: CBRE
NZ property yields by sector %
21

22
Spicers, HighbrookBusiness Park
Local consumer population
(within a 20 minute truck drive radius
668,609
Total purchasing power$18.4bn
CASE STUDY
＋customer has occupied the
16,973 sqm unit at Highbrook
since 2006
＋initial yield on cost of 8.8%
＋average capex of 1 bppa, 13 bps
pa including full refurbishment of
the property
＋the building has been re-leased
and will incur no downtime
INDUSTRIAL BUILDING LIFECYCLE
Development
FY18
Upgrade
$575,000
1.4% of asset value
Leased
12 year lease
Capex: 1 bppa
New customer
FY19
10year lease
2.2% rental increase
Total average capex including refurbishment: 13 bps pa
FY06

23
Prepared Produce, SavillLink
Local consumer population
(within a 20 minute truck drive radius
668,609
Total purchasing power$18.4bn
CASE STUDY
＋customer has occupied the
1,486 sqm unit at SavillLink
since 2006
＋initial yield on cost of 7.7%
＋average capex of 10 bps pa,
28 bps pa including full
refurbishment of the property
＋the building has been vacated
and re-leased with one month
downtime
INDUSTRIAL BUILDING LIFECYCLE
FY06
Development
Vacant
1 month
FY18
Upgrade
Leased
12 year lease
Capex: 10 bps pa
New customer
FY19
6 year lease
15.6% rental increase
Total average capex including refurbishment: 28 bps pa
$84,000
2.1% of asset value

24
＋asset sales providing funding
capacity for the development
programme
＋divesting Greenlane and
Christchurch assets
ASSET RECYCLING –4 YEARS
disposals
1
$784 million
yielding 7.3%
developments
2
$375 million
yielding 9.1%
1
Includingcontractedsalesyettosettle.
2
Yieldonadditionalspend.
7 Show Place, Show Place Office Park, Addington
Central Park Corporate Centre, Greenlane
Gateway Units – artists impression, HighbrookBusiness Park

＋disposals, development activity
and strategic investments have
transformed GMT
＋portfolio now predominately
Auckland industrial
＋office investment is focused in the
VXV Precinct
＋improving quality reflected in the
portfolio metrics
＋GMT’s direct property return of
13.8% in FY17, 3.2% better than
the MSCI benchmark
PORTFOLIO TRANSFORMATION
25
Industrial
60.0%
Development
Land12.0%
Office Park
28.0%
Asset diversity 2013
Industrial
84.5%
Development
Land4.7%
Office Park
10.7%
Asset diversity 2018
Key metricsFeb-18
1
Mar-13
Portfolio value ($m)
2,358
1,931
Netlettable area(sqm)
1,031,658
1,000,418
Customers
201256
Auckland weighting (%)
99.391.6
Portfolio occupancy (%)
9896
Weighted average cap rate (%)
6.58.1
Weighted average lease term(years)
6.25.3
Development commitments ($m)
164.8117.8
Relative property return (%)
2
3.2(0.2)
1
Portfolio adjusted for contracted sales yet to settle
2
MSCI NZ all universe index year ended 31 March 2017
Note: Asset diversity shows portfolio on completion of pending sales and commenced developments.

Highbrook
M20
Savill Link
Westney
Connect Industrial
The Gate
The Tamaki Estate
Penrose Industrial
614 Great South Road
VXV Portfolio
The Concourse
Christchurch Office
Preferred location
Higher quality
Core assets Value-add Sold properties Future disposals
26
PORTFOLIO MATRIX
＋strategic decision to focus
investment in key locations
within the Auckland industrial
market
＋93% of core assets have been
developed by Goodman
＋84% of assets sold have been
office
＋value add estates offer future
opportunity

27
8.5
The Concourse
11.9
Tamaki
11.2
Highbrook
17.2
Penrose &
Connect
GMT estates
MAP KEY
18.4
The Gate
14.5
SavillLink
10.1
Westney
10.9
M20
Example – The Gate
Local consumer population
(within a 20 minute truck drive radius)
668,609
Total purchasing power$18.4bn
CONSUMER
PURCHASING
POWER ($ bn)
Source: EsriDemographics – dataset 2016

AUCKLAND INDUSTRIAL MARKET
＋economic growth fuelling
occupier demand
＋low vacancy and rising market
rents a feature of most suburbs
＋expectations market rents will
grow 3-4% p.a. over the next
three years
＋yield compression slowing but
rental growth driving asset
values further
＋industrial land values now being
driven by offshore demand and
residential conversion factors
0.0
1.0
2.0
3.0
4.0
5.0
6.0
0
100,000
200,000
300,000
400,000
500,000
600,000
Vacant Stock (sqm)
Historic vacant stockHistoric vacancy
vacancy
50
60
70
80
90
100
110
120
130
140
20072008200920102011201220132014201520162017
$/sqm/annum
rentals
PrimeSecondary
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-250
250
750
1,250
1,750
2,250
2,750
($/sqm)
Historic valueHistoric yield
yield & value
250
300
350
400
450
500
20072008200920102011201220132014201520162017
$/sqm
land values
28
Source: CBRE

GMT PORTFOLIO-METRICS
＋occupancy was 98.2% and
WALT was 6.2 years at
February 2018
＋high occupancy supporting
build to lease programme
＋11.2% of portfolio income due
to expire in FY18-FY20
＋limited expiries also supporting
development initiatives
portfolio occupancy
lease expiry profile
Note: Portfolio occupancy and lease expiry profile is presented on a portfolio income basis
0%
5%
10%
15%
20%
25%
30%
35%
VacantFY18FY19FY20FY21FY22FY23FY24FY25FY26>FY26
VacantExpiring IncomeTerms Agreed
97%
96%
97%
98%98%
90%
92%
94%
96%
98%
100%
Mar-14Mar-15Mar-16Mar-17Feb-18
29

RENTAL REVERSION
＋passing rents have increased by
an average 5.3% pa when
reviewed to market
＋lease structure impacts timing of
reversion
＋44.5% of portfolio to revert to
market within next three years
30
Market
Review
29%
Fixed
48%
CPI
23%
Rent reviews by next review type
EstateReview typesqm
Annualised
increase
HighbrookBusiness ParkRenewal31,6317.3%
HighbrookBusiness ParkMarket review6,67613.2%
HighbrookBusiness ParkNew Lease2,8058.1%
Penrose Industrial Estate Renewal1,9965.2%
Penrose Industrial EstateNew Lease1,14610.2%
SavillLink New Lease1,4867.5%
The Gate Industry ParkRenewal4,7302.0%
The Gate Industry ParkMarket Review3,9872.7%

AUSTRALIAN COMPARISON
＋Auckland more land constrained
than Australian markets
＋tight rental range across the
Auckland market indicates no
differential being paid for location
in contrast to Sydney and
Melbourne
＋opportunity to drive market
rentals
31
EstateAucklandSydney MelbourneBrisbane
Prime industrial stock (m) sqm
4.111.510.35.4
Industrial land supply ha
1,1363,5836,8743,173
Prime warehouse rental ($)
120-135115-22065-170100-125
Prime capitalisation rate (%)
5.25-6.05.25-6.05.5-6.56.0-6.75
Forecast rental growth (%) pa
3.03.02.30.5
Prime vacancy (%)
2.02.03.04.0
Source: Colliers & Goodman

32
GMT DEVELOPMENT
STRATEGY
DEVELOPMENT
PROGRAMME
CSR , The Gate Industry Park

33
DEVELOPMENT
STRATEGY
＋development programme
continually improving the
portfolio, creating assets of a
quality and scale that can’t be
replicated or readily acquired
＋activity focused in key
Auckland locationswhere
supply is constrained
＋increased emphasis on
proximity to consumers
GMT Assets
MAP KEY
Unitary Plan Zoning
Business – Heavy Industry Zone
Business – Light Industry Zone
Future Urban Zone
West Auckland
Penrose
Otahuhu
Wiri
Glen Innes
East Tamaki
Source: Auckland Unitary Plan

＋over 850,000 sqm of current
portfolio developed by
Goodman
＋build to lease programme
maximising the efficiency and
value of remaining sites
＋programme supported by low
vacancy rate
Goodman development programme (NLA sqm)
PROVEN TRACK RECORD-
34
0%
1%
2%
3%
4%
5%
6%
7%
8%
0
20,000
40,000
60,000
80,000
100,000
120,000
20082009201020112012201320142015201620172018
Goodman design buildGoodman build to leaseAuckland industrial vacancy
Source: JLL & Goodman

The Hill, Highbrook Business ParkCSR, The Gate Industry Park
COMPLETION
May 2017
VALUE
$11.0m
NLA
4,937 sqm
ACCO, Highbrook Business Park
COMPLETION
June 2017
VALUE
$17.8m
NLA
7,503 sqm
COMPLETION
Aug 2017
VALUE
$16.9m
NLA
6,402 sqm
COMPLETED PROJECTS
35

Coda Stage 2, Savill LinkAB Equipment, HighbrookBusiness Park
Showroom Units, HighbrookBusiness Park
NLA
7,410 sqm
COMPLETION
Nov 2017
NLA
2,929 sqm
COMPLETION
Dec 2017
NLA
1,730 sqm
COMPLETION
Dec 2017
COMPLETED PROJECTS
36

＋seven developments
announced YTD, $164.8
million total project cost
＋$118.4 million of additional
spend, yielding 8.3%
＋13.1 ha of development land
utilised
＋63,468sqm of NLA
Gateway units – Artist Impression
Parade units– Artist Impression
FY18 DEVELOPMENTS
37
DevelopmentLocation
Additional
spend ($m)
NLA sqmCompletion date
Spicers HighbrookBusiness Park13.49,800Mar-18
FliwayexpansionWestneyIndustry Park2.71,895Feb-18
Gateway unitsHighbrookBusiness Park46.121,470Dec-18
Parade unitsHighbrookBusiness Park11.05,770Jul-18
Selwood unitsThe Concourse22.210,933Dec-18
SavillLink warehouse SavillLink11.78,500Nov-18
PlytechwarehouseHighbrookBusiness Park11.45,100Nov-18

＋active development projects
include 16 new warehouses
＋additional spend of $151.9 million
＋8.3% yield on additional spend
HIGHBROOK
WORK IN
PROGRESS

39
＋costs escalating but offset by
yield compression and rising
rents
＋quality of base build
specification also rising
＋developments typically
recording gains of 15-20%
when valued on completion
CONSTRUCTION COSTS
$250
$400
$550
$700
$850
$1,000
2012201320142015201620172018
Construction Cost $/m²
Warehouse rate

40
＋GMT land supply 27.1 ha
＋supports a further 134,800 sqm
of industrial and commercial
development
＋yield on additional spend
expected to range between
8-9%
DEVELOPMENT
PIPELINE
Remaining
land (ha)
Developable
NLA (sqm)
Additional
spend ($M)
HighbrookBusiness Park19.0101,300254
SavillLink6.224,30034
M20 Business Park1.99,20013
27.1134,800301

41
Penrose Industrial Estate
＋8.8 ha
＋35% site coverage
＋$681 sqm land and building value
＋yielding 6.8%
＋held circa 40% below replacement
cost
VALUE ADD
OPPORTUNITY

42
Connect Industrial Estate
＋4.6 ha
＋46% site coverage
＋$680 sqm land and building
value
＋yielding 6.8%
VALUE ADD
OPPORTUNITY

43
Tamaki Estate
＋5.8 ha
＋mixed use zoning
＋34% site coverage
＋$606 sqm land and building value
＋yielding 5.1%
VALUE ADD
OPPORTUNITY

44
VXV PRECINCT
Datacom Building , VXV Precinct

45
VXV PORTFOLIO
occupancy
WALT
NLA sqm
99%
10 YEARS
88,222
＋portfolio of seven modern, low rise
office assets jointly owned with
GIC
＋7,000 employees now working
within VXV portfolio
＋average building age of 7.4 years

0%
10%
20%
30%
40%
50%
60%
70%
80%
VacantFY19FY20FY21FY22FY23FY24FY25FY26>FY26
% of portfolio rent
Lease expiry profile
46
PORTFOLIO
METRICS
Fixed
83%
Market
16%
CPI
1%
Rent reviews (by next review)
0%5%10%15%20%
Technology Customer
Microsoft NZ
Hewlett Packard NZ
Bayleys Corporation
IBM New Zealand
KPMG/Kensington Swan
Auckland Transport
Datacom NZ
Air New Zealand
Fonterra Co-Operative
Top 10 customers
＋Fonterra Centre, BayleysHouse
and Datacom all 5 Green Star
Design rated
＋Air New Zealand renewed for
further eight years
＋technology customer leased top
floor of Datacom
＋outstanding ground rent reviews
settled

47
VXV Precinct / Wynyard Quarter
AREA OF URBAN
REGENERATION
＋additional residential apartments
and commercial space are
planned
＋3,000 residents and 25,000
workers expected by 2030
＋America’s Cup 2021

0%
2%
4%
6%
8%
10%
12%
14%
16%
0
100
200
300
400
500
600
Vacancy
Rent pa ($psm)
Auckland CBD office premium rent & vacancy
RentVacancy
Source:CBRE
Forecast
48
＋Auckland CBD office vacancy
at historic lows
＋vacancy to peak in 2019 with
the completion of Commercial
Bay
＋net effective rents, expected to
stabilise
＋CBD prime yields continue to
firm
＋record levels of offshore
investor interest and a number
of new entrants to the market
MARKET
TRENDS
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
Yield
Capital value ($psm)
Auckland CBD office premium yield & value
ValueYield
Source:CBRE
Forecast
Source:CBRE

49
OCCUPIER
TRENDS
Collaborative
Agile
& Flexible
Brand
Alignment
Authentic

50
INVESTMENT
STRATEGY
＋maintain premium space offer
＋maximise long-term cashflows
＋improve amenity to enhance
the location
＋investigate further opportunities
VXV Plaza
Goodman Office, KPMG Building
Fonterra CentreBayleysHouse

51
Ford —Highbrook Business Park
BALANCE SHEET
STRENGTH

FUNDING ENVIRONMENT
＋changing funding environment has influenced capital management strategy
＋bank funding retained for operational flexibility
＋institutional lending remains strong but banks’ preferred exposure levels have reduced to around
$100m per bank
＋pricing has stabilised at higher levels with tenors longer than three years no longer attractive
compared to other markets
＋USPP and domestic bond market remain very strong
funding market comparison
52
Funding market costs(approximate)

CAPITAL MANAGEMENT STRATEGY
＋maintain a degree of reliance on bank funding:
-targeting ~$300m of bank facilities
-tranche size set to minimise refinancing and re-pricing risk
＋bank debt provides operational flexibility, target of $100m - $200m of drawn bank debt:
-repayment flexibility in event of further asset sales
-any WPH third party refinancing may result in repayment of shareholder loans to GMT, and
bank debt repayment
＋gearing expected at lower end of 30% -35% band, providing:
-operating flexibility – capacity to fund acquisitions
-resilience – in the event of asset devaluations
＋liquidity (headroom) target to remain significant at $100m - $200m to provide for financial flexibility
＋liquidity / maturity profile to be maintained; no unfunded maturities within next 12 months
gearing
operational flexibility
53

FUNDING DIVERSITY OVER TIME
2012 funding sources (drawn)
2018 funding sources (drawn
1
)
＋reduced reliance on bank
funding has been a key focus
over recent years
＋managing funding sources, not
bank facilities (HHL, HDL)
＋non-bank funding provides both
tenor and pricing benefits
＋most diversified funding in NZ
listed property sector
“Tighter capital requirements and rising cost of funds have resulted in margins required by banks
lifting +30-50bps for LPVs over the last 24 months.....LPVs which have previously diversified
funding through debt capital markets are best positioned to mitigate this impact.”
Forsyth Barr, Funding headwinds gearing up, 18 December 2017
1
adjusted for expected settlement of Central Park divestment
54

CURRENT FUNDING STRUCTURE
2018 debt maturity profile
2,3
1
excludes GMT’s 50% share of Viaduct Corporate Centre
2
based on expected 31 March 2018 debt levels and adjusted for the expected settlement of Central Park
3
excludes GMT’s 51% share of its Viaduct joint venture debt facility. GMT’s Viaduct joint venture has a $112 million debt facility maturing September 2019.
＋weighted average debt term to
expiry of 4.7 years (drawn
basis), up from 3.1 years in
2012
＋around $200 million of
headroom within bank facility
＋amounts of $150 million or less
are well suited to sourcing
funding in multiple markets
＋corporate credit rating of BBB
and issue rating of BBB+
facilitates debt market access
2012 debt maturity profile
1
55

BALANCE SHEET STRENGTH
strong financial metrics
loan to value ratio
at historical lows
＋look through loan to value ratio of 32.4%
＋allowing for contracted sales, pro forma 30 September gearing of 25.8%
＋debt currently around 63% hedged to reduce interest rate volatility
＋interest cover ratio will be greater than 3.0x in 2018, well above the covenant minimum of 2.0x
FY12FY171H18Pro forma
Borrowings for LVR $m
608762836
Assets for LVR $m
1,7072,4922,575
LVR %
35.630.632.425.8
56

CASH EARNINGS
＋cash earnings of around 7.0
cents per unit are forecast for
FY18
＋distribution represents 94%
of cash earnings at half year
＋development activity
contributing to strong growth
in cash earnings
$ millionFY12FY13FY14FY15FY16FY171H18
Operating earnings after tax (before
base fee)
80.790.999.6101.198.1106.051.4
Capitalisedborrowing costs
(18.9)(23.6)(22.8)(20.3)(17.1)(11.4)(4.7)
Maintenance capex
(10.7)(9.4)(8.0)(6.7)(5.0)(3.9)(1.3)
Cash earnings
51.157.968.874.176.090.745.4
Base fee
(6.0)(6.8)(6.7)(6.4)(6.3)(7.7)(3.9)
Adjusted cash earnings
45.151.162.167.769.783.041.5
Distribution (cpu)
6.256.256.256.456.656.653.33
Cash earnings (cpu)
5.325.425.696.046.117.083.53
% of distribution
118%115%110%107%109%94%94%
Adjusted cash earnings (cpu)
4.704.795.145.535.616.493.23
% of distribution
133%130%122%117%119%103%103%
57
introduction of fee for units
arrangement from FY15

SUMMARY
HighbrookBusiness Park
58

own
develop
manage
FOCUS
59
＋modern high quality assets with strong customer covenants in the best locations
＋industrial property is the preferred sector, unique characteristics make it a superior
long-term investment
＋Auckland is the favoured location, demographic and consumer trends support this
decision
＋development programme has created portfolio of unrivalled quality
＋essential business activity to service customers, while continually improving the portfolio
＋new land opportunities difficult to secure, value add opportunities increasingly important
＋assets and customer relationships to maximise rental cashflows and long-term value
＋balance sheet capacity funding development progamme
＋treasury initiatives to lower interest costs improving diversity and tenor
＋transition to cash earnings based distribution policy, headwinds while completing asset
disposals

THANK YOU
Datacom —VXV Precinct
60
THANKYOU