For personal use only - asx.com.au · PDF fileFor personal use only 265,000 sqm to quality tenants. Page Investor Presentation ... QLD Honda & Spec, Northgate3 18 90% 6,750

Page Investor Presentation2011 Full Year Results Briefing8 February 2012

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Agenda

2

Financial

Performance 3Capital

Management 27

Investment

Property 6Strategy

& Outlook 33

Commercial

& Industrial 11 Appendices 36

Residential 18

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FY11 operating highlights

Financial performance

3

Group – EPS up 6% & DPS up 5%, in line with guidance

– Debt platform now fully unsecured through establishment of $675m syndicated bank debt facility

– Introduced high quality capital partners across the platform - GIC and LaSalle Investment

Management

Investment

Property

– Strong portfolio metrics maintained: occupancy 99.3% and WALE 5.8 years

– 265,000 sqm of leasing activity, representing ~20% of portfolio income

Commercial

& Industrial

– Completed 13 projects with an estimated end value of $300m

– Good progress on redevelopment of 357 Collins St, Melbourne - 50% committed with a further

20% under heads of agreement

– Solid forward workload of 210,000 sqm

Residential – 15% increase in gross lot sales

– Successful releases of 7 new projects, with strong sales recorded, particularly in NSW & VIC

– 939 contracts on hand, 64% expected to settle in FY12For

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Group financial results


4

FY11 FY10

Investment Property $165m $161m

Commercial & Industrial $29m $32m

Residential $76m $68m

Corporate $(28)m $(26)m

Operating EBIT $242m $235m

Operating profit after tax $135m $128m

Investment property revaluation gain $59m $39m

Impairment of development and joint venture assets $(30)m -

Unrealised loss on interest rate derivatives $(24)m $(1)m

Statutory profit after tax $141m $166mFor

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Key operating metrics


5

FY11 FY10

Operating EPS 23.5c 22.1c

DPS 21.5c 20.5c

% recurrent earnings (EBIT) 68% 69%

Development ROACE1 9.5% 8.9%

NTA per security $3.46 $3.52

Gearing2 33.0% 29.5%

1. Development EBIT plus NTA uplift on internal developments / average capital employed (before impairments)

2. Interest bearing debt / total tangible assets (cash adjusted), based on the drawn amount of debt excluding fair value adjustments and associated derivative financial instruments

– Operating EPS and DPS up, in line with guidance

– Recurrent earnings consistent with target range (60-70%)

– Gearing remains within target range (25-35%)

– Development ROACE continues to improve towards 12% target

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Investment Property

7

Results FY11 FY10

EBIT $165m $161m

Revaluation gain1 $59m $39m

Metrics

Portfolio value2 $2.2bn $2.1bn

Occupancy (by income) 99.3% 97.7%

Industrial occupancy 100.0% 100.0%

Office occupancy 100.0% 99.9%

Comparable rental growth 3.3% 3.2%

WALE (by income) 5.8 yrs 5.0 yrs

Average cap rate 8.34% 8.38%

1. Includes gains on internal developments of $22m (FY11) and $7m (FY10)

2. Includes properties under development and assets held for sale

– EBIT of $165m, up 2%

– Strong portfolio metrics maintained

with improved occupancy and WALE

– ~$170m of internally developed

product completed in FY11

• WALE of 11 years

• Average yield on cost of ~8.5%

– Significant leasing activity of

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Leasing activity

Investment Property

8

– Renewals, new leases and expansions

represent ~20% of portfolio income

• Office renewals: 40,000 sqm

• Industrial renewals: 150,000 sqm

• New leases: 59,000 sqm

• Expansions: 16,000 sqm

– Average rental increases on renewals of 3.2%

– Average incentives on leasing activity <5%

– Tenant retention of 95% (by income)

Major renewals Area (sqm) Expiry

Office

Nestle 17,200 2023

Commonwealth Government 10,700 2017

NSW Government 9,100 2016

Industrial

Coles 42,900 2032

Stramit 19,300 2019

DHL 17,700 2015

National Foods 14,500 2015

BAM Wines 13,400 2018

Sumitomo 12,400 2014

Major new leases

Costco 25,000 2019

CEVA 20,300 2018

NYK Logistics 10,700 2017

Expansions

Coles 11,800 2032

BAM Wines 4,200 2018

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Security of income

Investment Property

9

– Strong earnings visibility

• High occupancy and tenant retention

• 2% of portfolio income expiring in FY12

• Actively managing 2013 expiries (65% in 2H13)

– High quality portfolio with low capex requirements

(~$4m in FY11)

• Average age of office and industrial portfolio

remains low at <8 years

• 3.9 star weighted average NABERS energy

rating for office assets

– Strong tenant covenant with 82% of income from

government, ASX listed and multinational

companies

Lease expiry profile1

WALE (years)1 FY11 FY10

Industrial 6.7 5.8

Office 4.6 4.0

Portfolio 5.8 5.0

1. By portfolio income

2%

15% 14%11%

8%

50%

FY12 FY13 FY14 FY15 FY16 FY17+

Axis Title

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Positioning and outlook

Investment Property

10

– EBIT growth expected to continue

• Portfolio occupancy remains high

• Average 3.4% fixed rent reviews over

95% of portfolio income

• 357 Collins St income producing in

2H12 (70% committed or under heads

of agreement)

– Internal development pipeline expected to

deliver $370m of new product at an

average yield on cost of ~9%

• Forecast cost to complete of ~$200m

Track record of EBIT growth

Strong occupancy (by income)

99.5% 100.0% 99.0% 99.4% 97.7% 99.3%

FY06 FY07 FY08 FY09 FY10 FY11

$103m$111m

$136m

$154m$161m $165m

FY06 FY07 FY08 FY09 FY10 FY11

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Commercial & Industrial

12

Results FY11 FY10

Revenue1 $181m $261m

EBIT $29m $32m

NTA uplift2 $22m $7m

ROACE3 11.4% 10.1%

Impairments $23m -

Development activity

Built form - Third party (sqm) 113,000 97,000

Built form - Internal (sqm) 84,000 88,000

Land sales (sqm) 271,000 348,000

Metrics

Average capital employed4 $446m $378m

Forward workload (sqm) 210,000 228,000

1. Includes ALZ share of joint ventures and PDAs

2. Gains on internal developments reported as NTA uplift from 1 July 2010

3. EBIT plus NTA uplift on internal developments / average capital employed

4. Total assets less non interest bearing liabilities (3 point average), before impairments

– Revenue and EBIT down reflecting change in

recognition of internal development gains

– ROACE (including NTA uplift) increased,

reflecting continued delivery of development

pipeline

– Completion of 13 projects valued at ~$300m

including:

• Kmart ($72m) & Best & Less ($44m)

– Impairments of $23m across six estates in

Brisbane due to weaker than expected market

conditions in 2011

• Represents ~5% of total divisional capital

– Formation of Logistics JV with GIC

• Target investment size $450m

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Forward workload


13

INTERNAL DEVELOPMENT

Estimated end

value ($m)

% complete

31 Dec 11

GLA/NLA

(sqm) 1H12 2H12 % leased

NSW Building F, Rhodes Corporate Park 90 31% 17,700 0%

QLD Coles, Parkinson (expansion) 34 32% 11,800 100%

Flint St, Richlands 22 0% 15,000 0%

VIC 357 Collins Street, Melbourne 192 74% 32,350 70%1

Pacific Drive, Keysborough 31 0% 30,650 0%

DEVELOPED FOR

EXTERNAL SALE

Estimated end

value ($m)

% complete

31 Dec 11

GLA/NLA

(sqm) 1H12 2H12 % leased

NSW QLS & Spec, Eastern Creek (JV) 29 18% 21,700 60%

Gibbon Rd, Winston Hills 27 0% 19,600owner

occupier2

GME Kingray, Winston Hills 27 0% 16,000owner

occupier

QLD Honda & Spec, Northgate3 18 90% 6,750 30%

VIC Boundary Rd, Westpark 23 0% 26,400 0%

Coles, Spring Hill 23 70% 5,500 95%

Toll, Altona (GIC)3 15 90% 17,700 100%

Fellowes, Melb Airport (JV) 7 0% 7,400 100%

SA Electrolux, Beverley 20 0% 25,500 100%

– Forward workload of 210,000 sqm

across 14 projects, end value ~$560m

– 5 developments to be held in the

investment portfolio with an estimated

end value of ~$370m

• 3 industrial assets - expected yield

on cost of ~9.5%

• 2 office assets - expected yield on

cost of 8.75%

– 9 projects developed for external sale

with an estimated end value of ~$190m 1. Includes 20% under heads of agreement

2. Owner occupier name remains confidential

3. 100% profit contribution in 1H12 and included in forward workload

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Case study - Coles, Parkinson


14

– Integrated platform provides a unique

value proposition for customers

– New 20 year lease to Coles triggered

by 11,800 sqm expansion

• Total GLA 54,200 sqm

• $155m end value

• Yield on cost >9.5%

– Leveraging off strong client base

• 8th Wesfarmers transaction

• ~ 50% repeat business across the

platform

ACQUISITIONPROJECT

CREATIONDESIGN &

CONSTRUCTPROJECT

MANAGEMENTDEVELOPMENT MANAGEMENT

ASSET OWNERSHIP

Coles - Parkinson

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Industrial market outlook


15

Industrial completions

Source: Jones Lang LaSalle REIS 4Q11

– Low vacancy levels

• Prime grade vacancy <3% (except Brisbane)

• Strong absorption of secondary product in 2H11

• High level of tenant renewal activity

– Limited supply

• Supply remains below 10 year average

• Limited speculative activity

– Demand remains relatively subdued

• Owner occupier demand improving

• Limited pre-commitment demand

• 3PL and non-discretionary retail most active

– Strong investment demand for prime assets with

quality tenant covenants

Prime industrial vacancy

Melbourne 1.7%

Sydney 2.6%

Brisbane 7.7%

Source: Savills 2H11

0

500

1,000

1,500

2,000

2,500

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11

sq

m (000's

)

Sydney Melbourne Brisbane

10 year average

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5.3% 5.5%

4.4% 3.9%

2008 2009 2010 2011

Office developments


16

357 Collins St, Melbourne

– 50% committed with a further 20% under heads of

agreement

• Quality tenants with a 9 year WALE

– Melbourne CBD prime vacancy rate remains low at 3.9%

– Expected to be income producing in 2H12 with end value

of $192m and yield on cost 8.5%

Building F, Rhodes Corporate Park

– Located in a fully leased 75,000 sqm corporate park

– A grade office accommodation with 5 star Green Star and

5 star NABERS energy rating target

– Affordable proposition and local amenity driving enquiry

– Limited competing supply with expected completion in

1H13

– End value of $90m and yield on cost ~9%

Melbourne CBD prime vacancy

Building F - Rhodes Corporate Park, NSW

Source: Jones Lang LaSalle REIS 4Q11

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Positioning & outlook


17

– Operating conditions remain challenging with

pre-commitment demand relatively subdued

– Leverage market leading position in industrial

sector

• Integrated platform

• GIC logistics JV - $230m uncommitted

– Targeting 12% ROACE in FY12

• Marginally lower EBIT expected

• Increased NTA uplift driven by major office

projects: 357 Collins St and Rhodes F

– Solid forward workload of 210,000 sqm and

67,500 sqm of land sales contracted for

settlement in FY12357 Collins St, VIC

Kmart - Eastern Creek, NSW

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Residential

19

Results1 FY11 FY10

Revenue $587m $538m

EBIT $76m $68m

ROACE2 8.6% 8.3%

Impairments $7m -

Lots sold 1,654 1,544

Contracts on hand (lots) 623 633

Contracts on hand (value) $348m $300m

Activity3

Gross lots sold 2,536 2,197

Gross contracts on hand (lots) 939 1,055

Metrics

Average capital employed4 $888m $812m

Lots under management3 21,800 21,000

Pipeline end value3 $8.1bn $7.5bn


2. EBIT / average capital employed

3. Includes 100% of joint ventures and PDAs

4. Total assets less non interest bearing liabilities (3 point average), before impairments

– EBIT up 13%, with gross lot sales up 15%

– Solid level of contracts on hand

• Average value up 18%

• 64% of gross contracts expected to

settle in FY12

– Capital employed increased due to

• Impact of wet weather (SEQ & WA)

• New acquisitions securing medium

term earnings

• Restructure of projects to improve

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Operational highlights

Residential

20

– Successful launches particularly in NSW & VIC

• Clemton Park, NSWStage 1 - 97% sold

• Greenhills Beach, NSW

Stages 1 & 2 - 87% sold

• Discovery Point, Wolli Creek, NSW

Linc & Arc - 86% sold

• Burwood, VIC

10 stages - 95% sold

• Clyde North, VIC Stages 1 & 2 - 82% sold

• Greenvale, VIC

Stages 1 & 2 - 77% sold

– Expanding third party relationships

• LaSalle Investment Management -

Clemton Park and Wolli Creek, NSW

Sales activity (by lots)1


Contracts on hand (by lots)1

6%

14%

33%

47%

QLD WA NSW VIC

Contracts on hand

Lots sold

12%17%

41%

30%

0

100

200

300

400

QLD WA NSW VIC

6%

14%

33%

47%

0

500

1,000

1,500

2,000

QLD WA NSW VIC

Contracts on hand Lots sold

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Victoria overview

Residential

21

– Easing established house price outlook but expected to stabilise during 2012

– Owner occupiers & FHB’s (>60% of sales) expected to sustain market, investor share of sales ~20%

– 16 projects with 12 active in 2012

– Diverse geographic locations and price points provides trading resilience

– 90% of lots in joint ventures and PDAs

VIC diversity by price point1Geographic diversity

1. By lots, includes 100% of joint ventures and PDAs

0% 20% 40% 60%

<$200k

$200k - $300k

$300k - $400k

$400k - $500k

$500k - $600k

$600k - $700k

$700k - $800k

$800k - $900k

% of pipeline by product type

Medium / High Density

Land

0% 20% 40% 60%

<$200k

$200k - $300k

$300k - $400k

$400k - $500k

$500k - $600k

$600k - $700k

$700k - $800k

$800k - $900k

% of pipeline by product type

Medium / High Density

Land

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New South Wales overview

Residential

22

– Continued undersupply providing

advantages to projects with secured

approvals

– State Government actively assisting new

construction activity and fast tracking

projects - Ashlar & Clemton Park

– Pre-sales have been strong, underpinning

earnings outlook

• Clemton Park, Stage 1 (97% sold)

• Greenhills Beach, Stages 1 & 2 (87% sold)

• Wolli Creek, Linc & Arc (86% sold)

– 9 projects with 7 active in 2012

Project name

Value of contracts

on hand secured2

Greenhills Beach $55m

Wolli Creek, Discovery Point $54m

Clemton Park $16m

Lidcombe $9m



Product type

diversity1

Land

Medium

density

High density

35%

36%

29%Land

Housing & medium density

High density

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South East Queensland overview

Residential

23

– Activity remains restrained due to lack of

confidence

• Weak employment conditions

(ex resources)

• Low interstate migration

– Demand largely being met through churn in

established housing stock

– Housing affordability has improved with

Brisbane median price down 9% from peak

– Hamilton Reach - 62% sold (56 sales, $40m)

– Kangaroo Point (Stage 1) completion mid 2012

– Low exposure to QLD, only 9% of pipeline

Yungaba - Kangaroo Point, QLD

Net interstate migration

Source: ANZ Australian housing chartbook, January 2012

-40

-30

-20

-10

0

10

20

30

40

50

60

91' 93' 95' 97' 99' 01' 03' 05' 07' 09' 11'

An

nual r

olli

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um

(000's

)

NSW

VIC

QLD

WA

-40

-30

-20

-10

0

10

20

30

40

50

60

91' 93' 95' 97' 99' 01' 03' 05' 07' 09' 11'

An

nual r

olli

ng S

um

(000's

)

NSW

VIC

QLD

WA

-40

-30

-20

-10

0

10

20

30

40

50

60

91' 93' 95' 97' 99' 01' 03' 05' 07' 09' 11'

An

nual r

olli

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um

(000's

)

NSW

VIC

QLD

WA

-40

-30

-20

-10

0

10

20

30

40

50

60

1991 1996 2001 2006 2011

An

nual r

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(000s)

NSW

VIC

QLD

WA

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22%

51%

14% 13%

<$200k $200k - $400k $400k - $600k >$600k

Western Australia overview

Residential

24

– Employment improving and rental market

tightening

– Established housing stock being absorbed in

Perth metro area

– Improving consumer sentiment stabilising

market with further improvement expected in

2012

– 10 projects with 9 active

• Port Coogee sales momentum improving

• East Perth - 88% sold and settled

• Cockburn Central - 97% sold

Price point positioning1

Port Coogee, WA


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$455k $436k $474k $501k$559k

$0m

$100m

$200m

$300m

$400m

Dec 09 Jun 10 Dec 10 Jun 11 Dec 11

CO

H to

tal v

alu

e

Average contract value

COH total value (LHS)

FY12 outlook

Residential

25

Projects contributing to

higher average price in FY12

Kangaroo Pt, QLD $980k

Greenhills Beach, NSW $820k

Lidcombe, NSW (JV) $680k

Burwood, VIC $670k

Targeting 12% ROACE in FY12, driven by

earnings growth and lower capital employed

– Average value per lot expected to be significantly

higher

• Contracts on hand average value up 18% on

Dec 2010

• Increased contribution of substantially pre-

sold medium density projects

• Sales momentum at Greenhills Beach

expected to continue

– Volume growth not expected in FY12

– Emergence of new projects with strong margins

– Targeting reduction in average capital employed

• ~$200m of contracts on hand expected to

settle in 1H12

Contract on hand

average value1


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FY12 outlook (cont’d)

Residential

26

– Top 10 projects contribute approximately 80% of targeted EBIT

• These projects are either substantially pre-sold or have a strong track record of sales

• These projects are 100% zoned with planning approvals in place

– Recent acquisitions and existing projects will underpin earnings in the medium term

Projects Type1 State

FY12 target

gross lot sales

Target lot

sales secured

Average

price

Burwood H/MD VIC 92 33% $670k

Carlton (JV) H/MD VIC 100 90% $490k

Cranbourne West Land VIC 102 3% $215k

Clyde North (JV & PDA) Land VIC 168 2% $235k

Cockburn Central H/MD WA 94 97% $430k

Greenhills Beach Land NSW 170 39% $820k

Greenvale Land VIC 108 0% $250k

Kangaroo Point HD QLD 48 77% $980k

Lidcombe (JV) H/MD NSW 108 15% $680k

Parkville (JV) H/MD VIC 100 98% $480k

Projects

Value of

contracts secured2

Greenhills Beach, NSW $55m

Cockburn Central, WA $39m

Kangaroo Point, QLD $33m

Parkville, VIC $12m

Lidcombe, NSW $9m

Top 10 projects Major projects settling in 1H12

1. H/MD – Housing / medium density, HD – High density


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FY11 highlights

Capital management

28

Unsecured

debt

platform

– Debt platform fully unsecured following the establishment of a $675m syndicated bank facility

– Key benefits include:

• Improvement to debt maturity profile

• Reduced concentration of facilities expiring in any given year

• Diversification of funding sources with participation from 5 new lenders

• Reduced cost of debt

US private

placement

– First issuance by the Group into the USPP market raising US$170m

– Further diversification of funding sources

– Improvement to debt maturity profile: issuance had 10.5 year weighted average maturity

Other

initiatives

– Expanded capital partnering initiatives with introduction of GIC and LaSalle Investment

Management

– Successful implementation of the capital reallocation approved by securityholders at the AGM

– Balance sheet well positioned with significant headroom to covenantsFor

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$520m

$304m$371m

$134m$29m

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

$325m

$650m

Key metrics

Capital management

29

31 Dec 11 31 Dec 10

Gearing1 33.0% 29.5%

Look-through gearing2 33.3% 30.6%

Weighted average debt maturity 3.3 years 2.1 years

Undrawn facilities plus cash $548m $641m

Weighted average cost of debt3 8.1% 8.6%

% of debt fixed by hedges 72% 80%

Weighted average hedge maturity 4.0 years 4.2 years

Debt maturity profile

$300m

$437m

$385m$325m

$650m

2011 2012 2013 2014

Undrawn

Drawn


2. Interest bearing debt plus share of off-balance sheet interest bearing debt / total tangible assets plus share of off-balance sheet assets (cash adjusted) based on the drawn amount of debt excluding

fair value adjustments and associated derivative financial instruments

3. All in cost of debt excluding establishment fees and net of interest income

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Free cash flow

Capital management

30

– Free cash flow has improved in FY11

• Strong level of cash generation in

2H11

• In line with timing of settlements

and business activity

– Free cash flow excludes payments for

land acquisitions which will contribute

to future revenue

– Improvement in development returns

expected to provide additional support

to free cash flow profile of the Group

Free cash flow summary $m FY11 FY10

Receipts 742 711

Payments (513) (512)

Net interest (80) (66)

Distributions received 36 9

Tax 0 2

ASSETS distribution (27) (25)

Free cash flow 158 120

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Net tangible assets

Capital management

31

– NTA per security reduced by ~2% in FY11

– Property revaluation gains and retained earnings were offset by impairments and the

mark to market of the derivative book

NTA per security reconciliation

$3.52 $3.46

$0.10$(0.05)

$(0.13) $0.02

NTA 1 Jan 11 Propertyrevaluations

Impairments MTM of derivatives

Retainedoperatingearnings

NTA 31 Dec 11For

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Summary

Capital management

32

Improved capital position

– Debt maturity profile extended to 3.3 years from 2.1 years

– No debt maturities before June 2013

– Reduced concentration of facilities expiring in any year

– Fully unencumbered balance sheet

– Improved average cost of debt

Ongoing focus

– Maintain gearing within target range 25-35%

– Look for further opportunities to improve funding diversity and duration

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Continued progress on strategic objectives

Strategy & Outlook

34

Key sectors Maintain focus on the core sectors of residential, industrial and office where

we have distinct competitive advantages

Recurring

earnings

Target 60-70% of Group EBIT from recurrent earnings

– Group continues to perform in line with target range

Development

returns

Improve development divisions’ ROACE to at least 12% in FY12

– Group expects to achieve a step up in ROACE in FY12, driven both by

increased earnings and reduced capital employed in the development divisions

Capital

management

Prudent capital management

– Gearing of 33.0% as at 31 December 2011 (within target range of 25-35%)

– Successful introduction of high quality capital partners across the platform

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Group outlook and guidance

Strategy & Outlook

35

Outlook

– Cautious outlook for 2012

– Domestic economy remains soft outside of resources

– Pace at which business and consumer confidence is restored is key

– Group remains cautiously optimistic with a well leased investment portfolio, solid forward

workload for C&I and a healthy level of residential contracts on hand

Group earnings and distributions guidance

– Budgeting for an increase in FY12 operating earnings per security

– FY12 distribution guidance of 21.5 cents per securityFor

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Australand Property Group

Business model

37

RECURRENT INCOME

(60-70% of Group EBIT)

INVESTMENT PORTFOLIO

Commercial

& Industrial

$2.8bn1$2.2bn

ResidentialOffice

& Industrial

$8.1bn1

1. Estimated pipeline end values

GROWTH

(30-40% of Group EBIT)

DEVELOPMENT PIPELINE

OPTIMUM MIX OF RECURRENT INCOME AND GROWTHFor

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Financial

Summary of profit and loss statement

FY11

$m

FY10

$m

Investment Property 165 161

Commercial & Industrial 29 32

Residential 76 68

Corporate (28) (26)

Operating EBIT 242 235

Net interest (81) (85)

Profit before tax 161 150

Tax 1 4

Non-controlling interest (ASSETS) (27) (26)

Operating profit after tax 135 128

38

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FY11

$m

FY10

$m

Investment Property 164 167

Commercial & Industrial 18 22

Residential 62 50

Corporate (28) (26)

Unallocated interest (55) (64)

Profit before tax 161 150

Tax 1 4

Non-controlling interest (ASSETS) (27) (26)

Operating profit after tax 135 128

Financial

Profit before tax reconciliation

39

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Financial

FY11 operating segment

40

Commercial

& Industrial

$m

Total

Developer

$m

Investment

Property

$mFY11

Residential

$m

Corporate

$m

Elimination

$m

Total

$m

Sales Revenue

Property development sales 296.3 154.6 450.9 - - (24.2) 426.7

Rent from investment properties - - - 204.6 - - 204.6

Interest received or receivable 1.2 0.2 1.4 0.8 2.0 - 4.2

Management fees from joint ventures 11.1 - 11.1 2.6 0.2 - 13.9

Other income from joint ventures 14.7 - 14.7 - - - 14.7

Sundry income 15.1 0.1 15.2 1.4 12.0 - 28.6

Revenue from continuing operations 338.4 154.9 493.4 209.5 14.2 (24.2) 692.8

Property development sales from joint ventures 248.3 26.5 274.8 - - (14.3) 260.5

Revenue including sales from joint venture entities 586.8 181.4 768.2 209.5 14.2 (38.5) 953.3

Segment result before interest and equity accounted results 51.8 26.7 78.5 161.2 - (1.3) 238.5

Development profit through valuation of properties transferred to APT - - - - - 2.0 2.0

Share of net profits of associates and jv’s accounted for using the equity method 24.4 2.3 26.7 4.3 - (0.9) 30.1

Unallocated corporate costs - - - - (28.1) - (28.1)

Earnings before interest and tax 76.1 29.1 105.2 165.5 (28.1) (0.2) 242.5

Capitalised interest in cost of goods sold and other interest (85.5)

Interest income 4.2

Other fees charged between developer and trust -

Operating profit before tax 161.2

Income tax (expense)/credit on operating activities 0.9

Net profit attributable to ASSETS hybrid equity holders (non-controlling interest) (26.6)

Net operating profit after income tax 135.4For

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Financial

Interest reconciliation

FY11

$m

FY10

$m

Gross finance costs 116 104

Less: capitalised interest – developer (46) (39)

Less: capitalised interest – investment property (12) (4)

Add: unrealised loss on interest rate derivatives 24 1

Finance costs in profit and loss 82 62

Less: unrealised loss on interest rate derivatives (24) (1)

Add: capitalised interest expensed via COGS 28 27

Finance costs included in operating profit 86 88

Interest income 4 3

41

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Financial

Balance sheet

FY11

$m

FY10

$m

Assets

Cash

Receivables

Inventories

Investment properties

Investments held for sale

Equity accounted investments

Other assets

93

190

1,097

2,165

72

234

101

51

312

964

2,116

-

179

62

Total assets 3,953 3,684

Liabilities

Interest bearing liabilities

Other liabilities

1,382

306

1,122

262

Total liabilities 1,687 1,384

Net assets 2,266 2,300

NTA per security $3.46 $3.52

Gearing1 33.0% 29.5%


42

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Financial

Reported gearing

Statutory

balance sheet

Dec 11 Adjustments

Adjusted

balance sheet

Dec 11

Cash 93 - 93

Other assets 3,860 (24) 3,836

Total tangible assets 3,953 (24) 3,929

Interest bearing liabilities 1,382 (24) 1,358

Other liabilities 306 - 306

Total liabilities 1,687 (24) 1,663

Net assets 2,266 - 2,266

Gearing1 33.0%

43

1. Interest bearing debt / total tangible assets (cash adjusted), based on the drawn amount of debt excluding fair value adjustments and associated derivative financial instrumentsFor

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Financial

Look-through joint venture balance sheet

ALZ share of assets and liabilities

in joint ventures and associates

Dec 11

$m

Dec 10

$m

Assets

Cash

Inventories

Investment properties

Other assets

24

315

98

37

27

401

69

16

Total assets 475 514

Liabilities

Interest bearing liabilities

Other liabilities

137

103

264

71

Total liabilities 241 335

Equity accounted investments 234 179

44

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Financial

NTA and securities on issue reconciliation

Securities on issue Date No. of securities

As at 1 January 2011 576,837,197

Employee incentive scheme 11 March 2011 9,400

As at 31 December 2011 576,846,597

Weighted average number of securities 576,844,794

45

Net tangible assets $m $ per security

As at 1 January 2011 2,031 3.52

Gains from property revaluations 59 0.10

Impairment of development and joint venture assets (30) (0.05)

Losses on interest rate derivatives (76) (0.13)

Retained operating earnings 13 0.03

As at 31 December 2011 1,997 3.46

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Financial

Liquidity and debt facilities

Facility limit $m

Drawn amount $m Maturity date Security

Tranche B - syndicated 650 520 Jun 2013 Unsecured

Tranche C - syndicated 325 - Jun 2014 Unsecured

Tranche 2015 - syndicated 304 304 Jan 2015 Unsecured

Tranche 2016 - syndicated 371 371 Sept 2016 Unsecured

US private placement1 134 134 May 2021 Unsecured

US private placement1 29 29 May 2023 Unsecured

Total 1,813 1,358

Available facilities 455

Cash 93

Available liquidity 548

46

1. US Private placement at initial issuance amount (excludes fair value adjustments)

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Financial

Debt covenants

47

Measure Covenant FY11

Interest cover ratio (cash basis) >2.0x 2.9x

EBIT / cash interest paid

Investment Property interest cover ratio >1.3x 2.0x

Net operating income of IP / cash interest paid

Covenant gearing (look-through) <55% 43.2%

Total liabilities plus share of off-balance sheet liabilities / total tangible

assets plus share of off-balance sheet assets (cash adjusted)

Covenant gearing (contingent liabilities) <55% 44.7%

Total liabilities plus contingent liabilities / total tangible assets (cash adjusted)

Priority debt <7.5% 0.2%

Secured debt / total tangible assets

Tangible Net Worth >$1.7bn $2.2bn

Total tangible assets less total liabilities

ReportingCompliance

certificate bi-annuallyComplied

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Financial

Interest rate hedging profile

48

4.80%

4.90%

5.00%

5.10%

5.20%

5.30%

5.40%

5.50%

5.60%

5.70%

5.80%

$0m

$200m

$400m

$600m

$800m

$1,000m

$1,200m

$1,400m

2011 2012 2013 2014 2015 2016 2017 2018

Hedged amount (LHS)

Hedge rate at Dec 2011 (RHS)

Hedge rate at Dec 2010 (RHS)

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Investment Property

Portfolio details

Cap rates Dec 11 Jun 11 Dec 10

Industrial 8.72% 8.74% 8.70%

Office 7.92% 7.87% 7.98%

Portfolio 8.34% 8.33% 8.38%

Tenant profile2

ASX listed companies 33%

Multinational companies 42%

Government 7%

Other 18%

Total 100%

1. By portfolio value, excludes properties under development and properties held for sale

2. By portfolio income, excludes properties under development and properties held for sale

51%44%

5%

Industrial

Office

Other

Sector

diversity1

Rent review

structure2

89%

6%

5%

Fixed

> of fixed or CPI

Other

49

89%

6%

5%

Fixed

> of fixed or CPI

Other

52%43%

5%

Industrial

Office

Other

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32%

29%

33%

6%

VIC

QLD

NSW

WA & SA

Investment Property

Portfolio diversification

Industrial - key metrics Dec 11

Portfolio value1 $1.1 bn

Number of assets1 51

GLA 880,027 sqm

Occupancy (by income) 100%

Comparable rental growth 3.2%

Cap rate 8.72%

WALE (by income) 6.7 years

Portfolio age 6.3 years

Office - key metrics Dec 11

Portfolio value1 $1.0 bn

Number of assets1 15

NLA 228,730 sqm

Occupancy (by income) 100%

Comparable rental growth 3.4%

Cap rate 7.92%

WALE (by income) 4.6 years

Portfolio age 9.8 years

Office -

geographic

diversity

Industrial -

geographic

diversity

1. Includes properties under development and assets held for sale

32%

29%

33%

6%

VIC

QLD

NSW

WA & SA

50

35%

29%

30%

6%

VIC

QLD

NSW

WA & SA

46%

1%

53%VIC

QLD

NSW

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3%

26%

8% 9%12%

42%


Axis Title

95%

5%

Fixed

Other

Investment Property

Lease expiry profile and rent review structure

Industrial rent

reviews

89%

6%

5%

Fixed

> of fixed or CPI

Other

Office rent

reviews

Industrial lease expiry Office lease expiry

51

95%

5%

Fixed

Other

<1%

7%

19%14%

6%

54%


Axis Title

88%

10%

2%

Fixed

> of fixed or CPI

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Investment Property

Top 10 tenants by income

Portfolio Industrial Office

Wesfarmers - Coles (11%) Wesfarmers - Coles (15%) Nestle Australia (11%)

Nestle Australia (5%) LG Electronics Australia (5%) C’wealth Govt of Australia (10%)

C’wealth Govt of Australia (4%) H.J. Heinz Co. Australia (4%) PwC (9%)

PwC (4%) Schweppes Australia (4%) Tower Risk and Investment (7%)

Tower Risk and Investment (3%) Toll Holdings (3%) Wesfarmers - Coles (7%)

Qantas Airways (3%) Inchcape Motors Australia (3%) Qantas Airways (7%)

LG Electronics Australia (3%) DHL Global Forwarding (3%) TNT Australia (5%)

TNT Australia (2%) Costco (3%) State Govt of NSW (5%)

H.J. Heinz Co. Australia (2%) Retail Adventures (3%) National Australia Bank (4%)

Schweppes Australia (2%) Consolidated Paper (2%) Publishing and Broadcasting (3%)

52

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Investment Property

FY11 additions & disposals

53

Additions State TypeGLA sqm

Cost $m Major tenants Date

99 Station Road NSW Industrial 10,772 14.1 RF Industries Mar 11

Lot 122 Wonderland Drive1 NSW Industrial 51,660 72.5 Kmart Sep 11

Lots 37-39 & Part Lots 35-36 & 44-452 QLD Industrial 9,223 15.5 Salmat Apr 11 d

144-146 Atlantic Drive VIC Industrial 27,272 23.7 Tyres 4U & ESR Group Sep 11

22-28 Bam Wine Court (expansion) VIC Industrial 4,177 3.8 BAM Wines Dec 11

49-71 Pacific Drive VIC Industrial 25,163 21.4 Trimas Dec 11

1 & 15 Sunline Drive VIC Industrial 26,153 21.6 Arlec, Freight Specialists Apr 11

Disposals2 State TypeGLA sqm

Sale price $m Major tenants Date

1 & 7-15 Kellet Close NSW Industrial 23,267 31.3 Strandbags, Diageo Jun 11

Lot 14 Powers Road NSW Industrial 13,555 18.3 Sigma Jun 11

Lots 37-39 & Part Lots 35-36 & 44-45 QLD Industrial 9,223 15.6 Salmat Jun 11

62 Sandstone Place QLD Industrial 13,738 20.0 Kimberly Clark Jun 11

162 Australis Drive VIC Industrial 23,252 20.2 Queensland Cotton Jun 11

35-61 South Park Drive VIC Industrial 32,167 28.0 Priceline Jun 11

1. Investment property held for sale as at 31 December 2011, to be sold into the Australand Logistics JV (refer note 2)

2. Sale of 80.1% interest to Australand Logistics JV with GIC. Sale prices reflect 100% ownership

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60%

19%

14%

7%

VIC

QLD

NSW

SA

East/South East

20%

West28%

North12%

QLD19%

NSW14%

East/South East

West

70%30%

Industrial

Office


Pipeline positioning1

54

Pipeline positioning

($2.8bn estimated end value)

60%

19%

14%

7%

VIC

QLD

NSW

SA

Industrial landbank

positioning (394ha)


70%30%

Industrial

Office

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Pipeline flexibility

Landbank

Industrial

pre-lease

Industrial

land & build

Industrial

speculative

Industrial

land sales Commercial

NSW Botany

Eastern Creek

Macquarie Park

Rhodes

Winston Hills

QLD Berrinba

Northgate

Parkinson

Pinkenba

Richlands

Rocklea

Yatala

VIC Altona

357 Collins St

Dandenong

Freshwater (Stage 3)

Keysborough

Laverton

Melbourne Airport

Mulgrave

Rowville

West Park

SA Beverley

Burbridge Business Park

Gillman

55

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100,000

200,000

300,000

400,000

500,000

2004 2005 2006 2007 2008 2009 2010 2011


FY11 industrial land sales

56

Land sales by

geography (by sqm)

Historical land sales (sqm)

Average land price FY11

Melbourne $153/sqm

Brisbane $304/sqm

60%40%VIC

QLD

51%

9%

25%

14%

VIC

QLD

NSW

WA

average

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Residential

Pipeline positioning1

1. By number of lots, includes 100% of joint ventures and PDAs

57

67%31%

2%

Affordable

Medium range

Premium range

Pipeline by

product type

72%17%

11%

Land

Housing & medium densityHigh density

72%17%

11%

Land


72%17%

11%

Land


Pipeline by

geography

Pipeline by

price point

51%

9%

25%

14%

VIC

QLD

NSW

WA

54%

9%

23%

14%VIC

QLD

NSW

WA

71%21%

8%

Land


68%30%

2%

Affordable

Medium range

Premium range

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Residential

Pipeline breakdown1

Land Housing & medium density High density

Projects 30 Projects 17 Projects 11

Lots 15,511 Lots 4,626 Lots 1,700

End value $4.6bn End value $2.4bn End value $1.1bn

Average age2 5.2 yrs Average age2 2.9 yrs Average age2 8.7 yrs

Development life2 13.7 yrs Development life2 5.8 yrs Development life2 5.1 yrs

Croydon, VIC Hamilton, QLD Wolli Creek, NSW

58


2. Weighted average by lots remaining

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Pipeline emergence

Residential

59

– Recent acquisitions and existing projects will underpin earnings in the medium term

• Revenue commencement from 6 new projects is expected in FY13

• 36% of gross contracts on hand are expected to settle in FY13+

Medium density & apartments State FY13 FY14 FY15+

Ashlar NSW 750 lots

Clemton Park NSW 777 lots

Wolli Creek NSW 1,453 lots

Hamilton QLD 444 lots

Parkville VIC 500 lots

Westmeadows VIC 377 lots

Cockburn Central WA 261 lots

Land

Clyde north VIC 2,288 lots

Greenvale VIC 377 lots

Point Cook VIC 601 lots

Baldivis WA 837 lots


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Pipeline detail

60

Major wholly owned projects

5,523 lots with an estimated on-completion value of $2.7bn


Project Type1 Total lots Lots sold

Lots

(to go)

End value

to go $m

Contracts

on hand Ownership

Revenue

start

Estimated

revenue

finish

NSW Ashlar H/MD 750 - 750 454 - 100% 2015 2020

Elderslie Land 150 35 115 24 - 100% 2008 2014

Greenhills Beach Land 236 - 236 183 66 100% 2012 2013

Lidcombe H/MD 250 128 122 72 5 100% 2007 2014

Wolli Creek HD 663 - 663 340 - 100% 2016 2018

QLD Hamilton H/MD 444 - 444 322 56 100% 2013 2017

Hope Island Land 634 30 604 109 3 100% 2010 2017

Ivadale Lakes Land 630 439 191 46 2 100% 2003 2017

Kangaroo Point HD 167 - 167 150 37 100% 2012 2015

Park Ridge Land 283 - 283 62 - 100% 2013 2016

Springfield Land 270 85 185 42 8 100% 2010 2015

VIC Burwood H/MD 235 102 133 83 30 100% 2011 2013

Cranbourne West Land 700 276 424 88 3 100% 2010 2014

Greenvale Land 588 103 485 126 - 100% 2011 2015

WA Cockburn Central H/MD 485 130 355 156 91 100% 2008 2015

Port Coogee Land 360 91 269 365 1 100% 2007 2021

Somerley H/MD 211 181 30 12 3 100% 2007 2012For

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Pipeline detail

Major joint ventures and PDAs1

16,314 lots with an estimated on-completion value of $5.4bn



3. Excludes 225 lots sold under previous joint venture arrangement

Project Type2 Total lots Lots sold

Lots

(to go)

End value

to go $m

Contracts

on hand Ownership

Revenue

start

Estimated

revenue

finish

NSW Clemton Park H/MD 777 - 777 394 74 50% 2013 2017

Lidcombe H/MD 412 222 190 125 16 50% 2007 2013

Shell Cove Land 2,600 1,500 1,100 450 19 PDA 1997 2021

The Ponds Land 1,328 1,002 326 139 25 PDA 2007 2013

Wolli Creek3 HD 790 - 790 506 184 50% 2013 2016

VIC Beveridge Land 3,800 - 3,800 940 - PDA 2015 2041

Carlton H/MD 586 88 498 319 104 50% 2011 2017

Clyde North Land 2,566 110 2,456 734 3 50% & PDA 2011 2026

Croydon Land 574 277 297 99 - 50% 2009 2014

Parkville H/MD 826 226 600 263 118 50% 2006 2019

Point Cook Land 601 - 601 212 - 50% 2013 2018

Sunbury Land 390 - 390 85 - PDA 2014 2017

Sunshine H/MD 654 372 282 116 16 50% 2009 2014

Wallan Land 1,697 387 1,310 232 4 50% 2009 2023

Westmeadows H/MD 377 - 377 93 - PDA 2013 2016

WA Baldivis Land 837 - 837 190 - 50% 2014 2019

Byford Land 400 52 348 67 31 50% 2010 2015

Port Coogee Land 405 269 136 138 2 50% 2006 2015

Yanchep Land 1,303 187 1,116 263 19 50% 2009 2020

61

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Pipeline overview1

Lots remaining End value ($m)

No.

projects Land

Housing &

medium

density

High

density Land

Housing

& medium

density

High

density

NSW 16 1,777 1,857 1,454 796 1,059 848

VIC 16 9,802 1,890 - 2,526 874 -

QLD 10 1,263 452 182 259 328 172

WA 16 2,669 427 64 1,009 185 33

Total 58 15,511 4,626 1,700 4,590 2,446 1,053

Wholly owned 25 2,826 1,865 832 1,052 1,122 491

JV / PDAs 33 12,685 2,761 868 3,538 1,324 562

Total 58 15,511 4,626 1,700 4,590 2,446 1,053


62

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Pipeline overview1

63

Lots remaining End value ($m)

No.

projects Land

Housing &

medium

density

High

density Land

Housing

& medium

density

High

density

NSW 16 966 1,374 1,058 460 800 594

VIC 16 5,567 1,012 - 1,416 479 -

QLD 10 1,263 452 176 259 328 162

WA 16 1,888 408 32 782 177 16

Total 58 9,684 3,246 1,266 2,917 1,784 772

Wholly owned 25 2,826 1,865 832 1,052 1,122 491

JV / PDAs 33 6,858 1,381 434 1,865 662 281

Total 58 9,684 3,246 1,266 2,917 1,784 772

1. Includes ALZ share of joint ventures and PDAsFor

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FY11 metrics1


2. Average sale price adjusted to exclude lots and revenue sold under PDA

structures as sales from PDAs are not included in reported revenue

64

72%17%

11%

Land


72%17%

11%

Land


72%17%

11%

Land


Lot sales by

geography

Lot sales by

segment

51%

9%

25%

14%

VIC

QLD

NSW

WA

Land FY11

Lots sold 1,077

Revenue $246m

Average sale price2 $246k

Housing & medium density FY11

Lots sold 429

Revenue $231m

Average sale price $538k

High density FY11

Lots sold 148

Revenue $110m

Average sale price $743k

62%

6%

18%

14%VIC

QLD

NSW

WA

65%26%

9%Land

Housing & medium densityHigh densityF

or p

erso

nal u

se o

nly


Residential

FY11 metrics1

65

Lots sold NSW VIC WA QLD Total

Land 113 791 120 53 1,077

Housing & medium density 84 243 72 30 429

High density 102 1 34 11 148

Total 299 1,035 226 94 1,654

Wholly owned 32 717 120 93 962

JV / PDAs 267 318 106 1 692

Total 299 1,035 226 94 1,654

Revenue ($m) NSW VIC WA QLD Total

Land2 39 136 58 13 246

Housing & medium density 61 130 27 13 231

High density 79 4 19 8 110

Total 179 270 104 34 587

Wholly owned 50 153 44 33 280

JV / PDAs 129 117 60 1 307

Total 179 270 104 34 587


2. Excludes revenue from projects under PDA structures

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66

Australand Holdings Limited (ABN 12 008 443 696)

Australand Property Limited (ABN 90 105 462 137; AFSLN 231 130) as the responsible entity of Australand Property

Trust (ARSN 106 680 424) and Australand ASSETS Trust (ARSN 115 338 513)

Australand Investments Limited (ABN 12 086 673 092; AFSLN 228 837) as the responsible entity of Australand

Property Trust No.4 (ARSN 108 254 413) and Australand Property Trust No.5 (ARSN 108 254 771)

Level 3, 1C Homebush Bay Drive

Rhodes NSW 2138

Ph: +61 2 9767 2000

Fax: +61 2 9767 2900

Disclaimer of liability

While every effort is made to provide accurate and complete information, Australand does not warrant or represent that the

information in this presentation is free from errors or omissions or is suitable for the recipients’ intended use. Subject to any

terms implied by law and which cannot be excluded, Australand accepts no responsibility for any loss, damage, cost or

expense (whether direct or indirect) incurred by any recipient as a result of any error, omission or misrepresentation in

information in this presentation. All information in this presentation is subject to change without notice.

Disclaimer

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Documents

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