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bdo A-REIT SuRvEy 2009
InTRoducTIon
Dear Colleagues,
BDO Corporate Finance is pleased to present the fifteenth edition of the BDO A-REIT Survey (“the BDO Survey”).
The BDO Survey covers the financial year ended 30 June 2009 (“FY09’) – a period in which volatility and concerns continued to permeate the A-REIT Sector (“the Sector”). Nevertheless by the end of the year the first signs of recovery were emerging.
The S&P/ASX Property 300 Index (“Property Index”) had fallen 44% from its peak in October 2007 to 1,388 at 30 June 2008. This significant decline has continued over the past year with the Property Index reaching a low of 533 on 6 March 2009 (representing a total fall of 79% from the October 2007 high). As at 30 June 2009 the Property Index had recovered to close at 739.
The correction in market prices of A-REITs resulted in many entities trading at considerable discounts to their asset backing. As the equity markets recovered and debt markets thawed insolvency and default risks diminished. In response to this the market prices of a number of these entities experienced significant rebounds from their low bases.
Key findings of the BDO Survey include:
• Only4ofthe58entitiessurveyedrecordedapositivetotalreturnfortheyear;
• Over91%oftheentitieshaverecordedafallinpropertyvaluesoverthe12months;
• 95%ofentitiestradedatadiscounttonettangibleassets(“NTA”) and for the first time since the 2002 BDO Survey, entitiesarenowpricedonaveragebelowtheirNTA(amedianshare/unitpricediscounttoNTAof55%);
• 8entitiessuspendeddistributionsduringtheperiod;and
• Entitieswithinternationalassetscontinuetounder-performthosewhichmainlyowndomesticproperties.
Following on from positive feedback in relation to our 2008 Survey, (where we accounted for the diversity of the A-REITs by classifying each as either a traditional unit trust or a stapled entity/company), we have again ranked the entities in each classification. We believe that this more appropriately distinguishes the results of those entities that have embarked upon a strategy of earnings diversification through utilising a stapled or corporate structure, from those that remain essentially as passive investors in property. We hope readers find this classification useful.
Our in depth knowledge of, and interest in, Australian listed and unlisted property funds has established us as leading independent advisers to the industry and we remain committed to following and analysing the trends in both the A-REIT Sector and the growing global property market.
On behalf of our national corporate finance team, we hope you find the BDO Survey to be a valuable tool for benchmarking the performance of the A-REIT Sector in Australia.
Best Regards,
Sebastian Stevens National Director, Corporate Finance
AbouT bdo
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IndEx
1 2009 TOP PERFORMERS 7
1.1 Top 3 unit trusts for 2009 8
1.2 Top 3 stapled entities/companies for 2009 10
2 CONTENDERS & CRITERIA 13
2.1 The contenders 14
2.2 Name changes 16
2.3 Scoring summary 16
2.4 Survey period 17
3 GENERAL FINDINGS 18
3.1 Summary of performance measures & benchmarks 20
3.2 Financial criteria 21
3.3 Investment criteria 22
3.4 Make-up performance of the Australian listed property sector 23
3.5 Market performance of A-REIT sector to 30 June 2009 25
3.6 Market performance of A-REIT sector year to October 2009 27
3.7 Asset values and write-downs 28
3.8 Capital raisings 31
3.9 Gearing analysis 32
3.10 Location of property assets 34
3.11 Weighted average investment rates 36
3.12 Weight average lease expiry 37
4 FULL RANKINGS 38
5 DETAILED SURVEY RESULTS 42
6 EXPLANATION OF CRITERIA AND RANKING 61
6.1 Financial criteria 62
6.2 Investment criteria 63
6.3 Method of ranking 64
6.4 Newcomers 66
6.5 Removals & small cap exclusions 66
7 BDO CORPORATE FINANCE PROPERTY EXPERTISE 68
8 DISCLAIMER 74
9 CONTACT US 75
1 2009 Top pERfoRmERS
2009 BDO A-REIT Survey8
2009 Top pERfoRmERS
1.1 Top 3 unit trusts for FY09
These traditional unit trusts typically include stand-alone trusts which provide investors with pure exposure to the underlying real estate portfolio. Management of the properties is generally contracted out to external professional property managers. Historically, these entities have made up the majority of the Sector.
Top 3 trusts Ranking
Overall Financial Investment
ING Real Estate Healthcare 1 7 5
CFS Retail Property Trust 5 27 2
Bunnings Warehouse Property Trust 6 32 1
#1 ING Real Estate Healthcare
Year Listed 2006
Trust background:
ING Real Estate Healthcare Fund invests in healthcare related properties including hospitals, specialist medical office buildings, medical centres, rehabilitation facilities, residential aged-care, medical related laboratories and other purpose-built healthcare facilities. ING Real Estate Healthcare Fund has an Australian portfolio of seven healthcare assets located in Queensland and Victoria.
Performance highlights:
• Toppedtheoneyearreturncategorywithapositivereturnof8%(theaverage of all entities for FY09 was negative 50%)
• Aboveaveragethreeyearreturnofnegative5%(theaverageofallentitieswas negative 33%)
• Aboveaveragedividendyieldof12%(theaverageofallentitieswas9%)
• RelativelysmalldeclineinNTAof15%(theaverageofallentitieswas46%)
2009 BDO A-REIT Survey 9
#2 CFS Retail Property Trust
Year Listed 1994
Trust background:
The CFS Retail Property Trust’s portfolio comprises interests in regional and sub-regional shopping centres across Australia. At 30 June 2009 the Trust had 24 retail assets and total gross assets of $7.3 billion.
Performance highlights:
• RelativelystrongOne-yearreturnofnegative5%(theaverageofallentities was negative 50%)
• Achievedapositivethreeyearreturnof2%(relativetotheaverageofallparticipants of negative 33%)
• RelativelysmalldeclineinNTAof13%(theaverageofallentitieswas46%)
#3 Bunnings Warehouse Property Trust
Year Listed 1998
Trust background:
The Bunnings Warehouse Property Trust was established in 1998 with a focus on warehouse retailing properties, in particular, warehouses leased to Bunnings. The Trust’s portfolio has grown to a total of 60 properties as at June 2009 (53 established Bunnings warehouses, 1 Bunnings distribution centre, 1 development site for a Bunnings warehouse, 4 office/warehouse industrial properties, and a bulky goods showroom complex) with a total value of approximately $956 million.
Performance highlights:
• Thirdintheone-yearreturncategorywith5%(theaverageofallentitieswas negative 50%)
• Relativelystrongthreeyearreturnof1%(theaverageofallentitieswasnegative 33%)
• RelativelysmalldeclineinNTAof16%(averageofallentitieswas46%)
The top 3 unit trusts were in the top 5 entities overall in BDO’s Half Year 2009 survey.
Their ranking in the current BDO Survey indicates they were able to continue their strong performance in the second half of FY09.
2009 BDO A-REIT Survey10
1.2 Top 3 stapled entities/companies for FY09
Stapled securities typically consist of a unit in a property trust and a share in a management or operating company that cannot be traded separately. We also include in this category those entities that operate only as companies. As discussed in previous BDO Surveys, the majority of the growth in the Sector in recent years has been driven by an increase in the number of stapled securities.
Top 3 stapled entities/companies Ranking
Overall Financial Investment
Ardent Leisure Group 2 9 3
ALE Property Group 3 3 6
Cromwell Group 4 5 15
#1 Ardent Leisure Group
Year Listed 2003
Company background:
Ardent Leisure Group (formerly Macquarie Leisure Group) is owner and operator of leisure assets including Dreamworld, WhiteWater World, d’Albora Marinas, AMF and Kingpin Bowling, Goodlife Health Clubs, as well as a growing portfolio of family entertainment assets in the USA through Main Event.
Performance highlights:
• Secondintheone-yearreturncategorywithapositive8%result(theaverageof all entities was negative 50%)
• Seventhinthethree-yearreturncategorywithanegative9%result(theaverage of all entities was negative 33%)
• Strongoperatingcashyieldof14%(11thoverall)versusanaverageforallentities of 10%
• Aboveaveragedividendyieldof11%(averageforallentitieswas9%)
2009 BDO A-REIT Survey 11
#3 Cromwell Group
Year Listed 2006
Company background:
Formed in 2006 following the merger of Cromwell Corporation Limited and several unlisted property trusts, the Cromwell Group is engaged in property investment, property management and property development. Cromwell currently has over $1.7 billion in assets under management and services over 240 tenants throughout Australia.
Performance highlights:
• Seventhofallentitiesindistributionreturnwithdistributionyieldof14%
• Ninthofallentitiesinone-yearreturncategorywithareturnofnegative21%(relative to the average of all entities of negative 50%)
• Eleventhinthree-yearreturncategorywithanegative13%return(averageofall entities was negative 33%)
#2 ALE Property Group
Year Listed (stapling) 1998
Company background:
ALE Property Group is Australia’s largest listed freehold owner of pubs, owning over 100 pubs across Australia. All of the pubs in the portfolio are leased to the Australian Leisure and Hospitality Group Limited for an average initial term of around a further 20 years.
Performance highlights:
• Sixthintheone-yearreturncategorywithnegative15%(averageofallentities was negative 50%)
• Secondinthethreeyearreturncategorywithapositive4%return(averageofall entities was negative 33%)
• Aboveaverageoperatingcashyieldanddividendyield(12%and13%respectively)
• NochangeinNTA(averagedeclineofallentitiesinNTAof46%)
Strong operating cash and dividend yields have supplemented relatively good investment returns to elevate these entities above the pack.
2conTEndERS & cRITERIA
2009 BDO A-REIT Survey14
2.1 The contenders
The BDO Survey is based on the annual reports of entities within the real estate investment and development sector of Australia as at 30 June 2009. Fifty-eight entities (twenty-five unit trusts and thirty-three stapled entities/companies) with combined total assets of $190 billion have been included in the 2009 Edition. This compares to fifty-eight entities with combined total assets of $217 billion included in the 2008 Edition. Each year the eligibility of participants for inclusion in the BDO Survey is reassessed.
Entity name Size (1) Sector
Abacus Property Group 1,446 Multi sector
ALE Property Group 921 Hotels, pubs and entertainment precincts
APN UKA European Retail Trust 1,112 Retail shopping centres
Ardent Leisure Group 745 Hotels, pubs and entertainment precincts
Aspen Group 621 Multi sector
Astro Japan Property Trust 1,820 Multi sector
Australand Property Group 3,662 Development
Australian Education Trust 462 Office buildings
AV Jennings Limited 480 Development
Becton Property Group Limited 546 Development
Bunnings Warehouse Property Trust 1,000 Retail shopping centres
Carindale Property Trust 451 Retail shopping centres
Cedar Woods Properties Limited 163 Development
Centro Properties Group 18,235 Retail shopping centres
Centro Retail Trust 2,925 Retail shopping centres
CFS Retail Property Trust 7,322 Retail shopping centres
Challenger Diversified Property Group 850 Multi sector
Challenger Kenedix Japan Trust 841 Retail shopping centres
Challenger Wine Trust 266 Industrial estate
Charter Hall Group 524 Multi sector
Commonwealth Property Office Fund 3,157 Office buildings
Cromwell Group 1,309 Multi sector
Devine Limited 673 Development
Dexus Property Group 8,351 Multi sector
FKP Property Group 3,773 Development
Galileo Japan Trust 1,051 Multi sector
GEO Property Group 393 Office buildings
conTEndERS & cRITERIA
2009 BDO A-REIT Survey 15
Entity name Size (1) Sector
Goodman Limited 8,583 Industrial estate
GPT Group 9,660 Multi sector
Growthpoint Properties Australia Trust 672 Development
Hedley Leisure & Gaming Property Fund 962 Hotels, pubs and entertainment precincts
ING Industrial Fund 3,629 Industrial estate
ING Office Fund 2,969 Office buildings
ING Real Estate Community Living Group 632 Office buildings
ING Real Estate Entertainment Fund 413 Hotels, pubs and entertainment precincts
ING Real Estate Healthcare Fund 208 Office buildings
Lend Lease Corporation 8,319 Development
Macquarie CountryWide Trust 2,126 Retail shopping centres
Macquarie DDR Trust 1,898 Retail shopping centres
Macquarie Office Trust 4,434 Office buildings
Mirvac Group 7,374 Multi sector
Mirvac Industrial Trust 565 Industrial estates
Mirvac Real Estate Investment Trust 1,021 Multi sector
Multiplex European Property Fund 510 Retail shopping centres
Peet Limited 648 Development
Prime Retirement & Aged Care Property Trust 1,384 Office buildings
Rabinov Property Trust 252 Multi sector
Real Estate Capital Partners USA Property Trust 363 Multi sector
RNY Property Trust 186 Office buildings
Stockland Corporation 14,461 Multi sector
Sunland Group Limited 897 Development
Thakral Holdings Group 1,205 Retail shopping centres
Tishman Speyer Office Fund 1,249 Office buildings
Trafalgar Corporate Group 302 Office buildings
Trinity Group 330 Multi sector
Valad Property Group 1,268 Multi sector
Westfield Group 49,322 Retail shopping centres
Westpac Office Trust 1,202 Office buildings
Note 1: Total assets as at 30 June 2009 ($ Millions)
Of the fifty-eight entities participating in the BDO Survey, 43% are traditional unit trusts, with the remaining entities either having stapled or corporate structures.
2009 BDO A-REIT Survey16
2.2 Name changes
The following entities have changed names since the 2008 BDO Survey.
old name new name date of change
Babcock and Brown Japan Property Trust Astro Japan Property Trust 28 July 2008
Orchard Industrial Property Fund Growthpoint Properties Australia 19 August 2009
Macquarie Leisure Trust Ardent Leisure Trust 28 August 2009
Australian Commercial Property Trust Rabinov Property Trust 27 April 2009
2.3 Scoring summary
Explanation of the criteria used in this survey together with the and methods of weighting and ranking is included at Section 6. A summary of the scoring for the 2009 BDO Survey is as follows.
Total overall score of survey weighted score 2009 %
Financial criteria 300 60
Investment criteria 200 40
Total overall 500 100
2009 BDO A-REIT Survey 17
2.4 Survey period
The BDO Survey only takes into account information disclosed in each entity’s annual report for the year ended 30 June 2009. For those entities with 31 December year ends, half year reports to 30 June 2008 and 2009 have been used together with the annual report to 31 December 2008 to create comparable results for the year ended 30 June 2009.
$14 bIllIonThe total assets of the thirty-three participants in the inaugural 1995 BDO A-REIT Survey. This has grown to the fifty-eight entities with total assets of $190 billion in the 2009 BDO Survey.
This is the fifteenth edition of the BDO A-REIT Survey which has tracked changing dynamics of the listed Australian property industry.
3gEnERAl fIndIngS
2009 BDO A-REIT Survey20
3.1 Summary of performance measures and benchmarks
financial criteria high low Average
Cash yield on weighted average net assets 46% (3)% 10%
Distribution return on investment 26% 0% 9%
Tax advantaged distributions 100% 0% 33%
Movement in NTA 6% (423)%1 (46)%
Premium/(Discount) to NTA 53% (84)% (46)%
Investment criteria high low Average
Total rate of return on investment (one year) 8% (90)% (50)%
Total rate of return on investment (three year) 5% (75)% (33)%
Volume of trading on ASX (liquidity) 335% 0% 86%
benchmarks Average all participants
Gearing ratio 46%
Weighted average interest rate on borrowings 5%
Average property valuation movement (on gross assets)
(16)%
Average lease term to expiry (years) 7
1 Centro Properties Group’s NTA per share fell from positive $0.69 at 30 June 2008 to negative $2.23 at 30 June 2009.
gEnERAl fIndIngS
2009 BDO A-REIT Survey 21
3.2 Financial criteria
financial criteria median 2009 median 2008
Operating cash yield 7.6% 6.9%
Distribution return on investment 8.6% 7.1%
Tax advantaged distributions 20% 47%
Movement in NTA (40)% (4)%
Premium to NTA (54)% 0%
Not surprisingly, 2009 presented some interesting results in the financial criteria:
• WenotedlastyearthatitwasthefirsttimeinthehistoryoftheBDOSurveythemedianNTAhadfallen(medianNTAfellby4% during FY08). Further declines in property values and write-downs of other assets during FY09 have caused a significant reduction in NTA of 40%. As with last year, declines in property values have a compound effect on NTA, due to the effect of gearing.
• ThemedianoperatingcashyieldanddistributionreturnoninvestmenthaveincreasedslightlyduringFY09.Thishasbeencaused by reductions in the denominators of those criteria (average unitholder funds and average share price respectively).
• Wenotethateightentities(14%ofparticipants)havenotpaidadistributionduringFY09(comparedwithonefromtheprevious year). Entities are choosing not to distribute profits in order to improve gearing ratios and otherwise stabilise their operations.
2009 BDO A-REIT Survey22
3.3 Investment criteria
Investment criteria median 2009 median 2008
1 Year return (55)% (47)%
3 Year return (31)% (1)%
Liquidity 76% 55%
With a median Sector return of negative 55% (compared with 47% for the previous year) it is not surprising that the investment returns for Sector entities experienced during the year were poor.
• Onlyfourentities(INGRealEstateHealthCare,BunningsWarehousePropertyTrust,CarindalePropertyTrustandArdent Leisure Group) achieved positive returns. 10 entities returned greater than negative 80% during the year.
• TherehasbeenasignificantdeclineinthreeyearreturnforFY09,astheeffectoftwoyearsofpoorperformancenow constitute a more significant portion of the three year timeframe. The median three year return has fallen from negative 1% to negative 31%.
• LiquidityhasimprovedduringFY09,howeverconsideringthesignificantoneyearnegativereturnthisindicatesthevolume has been driven by sellers. Liquidity may also have increased during the period as a result of significant capital raisings undertaken during FY09 (please refer to Section 3.8).
2009 BDO A-REIT Survey 23
3.4 Make-up of the Australian listed property sector
We have included a summary of the make up of the Australian listed property sector to provide readers with an understanding of what and who are the key sectors and players. In the first graph is the number of entities in each category covered in our survey and their respective gross assets.
The dominant sector is retail shopping centres, driven by the scale of Westfield Group as displayed in the graph of entities constituting the Property Index. The diversified (or “multi sector”) sector has the highest number of participants (16) and the next largest total assets to the retail sector.
Make-up of the Australian listed property sector
-
10
20
30
40
50
60
70
80
90
100
0
2
4
6
8
10
8
12
14
16
Retail shopping centres
Industrial estates
Hotels, pubs & entertainment
precincts
Office buildings
Multi sector Development
Tota
l ass
ets
($ b
illio
ns)
Num
ber o
f ent
itie
s
Total assets Number of entities
The most represented sector in terms of number of entities is the diversified sector. The retail sector has the highest total assets.
2009 BDO A-REIT Survey24
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Westfield group
Stockland Trust group
GPT Group Dexus Property group
CFS Retail property trust
Mirvac Group Other
Perc
enta
ge o
f Pro
pert
y In
dex
Westfield Group (the largest real estate investment trust in the world) represented nearly 45% of the Property Index as at 30 June 2009, the next largest entity was Stockland Group representing 14%. The top 6 entities comprising the Property Index constitute 84%, of the Property Index.
Make-up of the Property Index by entity
2009 BDO A-REIT Survey 25
3.5 Market performance of A-REIT sector to 30 June 2009
The five year period from 1 July 2004 to 30 June 2009 has seen the returns of the Property Index underperform relative to the All Ordinaries.
In the chart below comparing the Property Index performance versus the All Ordinaries performance, we have also included the returns of Westfield Group. As discussed previously Westfield Group comprises a significant portion (45%) of the Property Index. Westfield Group has outperformed relative to the Property Index for the five year period ended 30 June 2009 with a 26% decline. The sector as a whole (inclusive of Westfield Group) has ended the five year period 55% lower. The implication therefore is that the Property Index return would have been significantly less if it was not for the performance of the Westfield Group.
All Ordinaries vs Property Index – 1 July 2004 to 30 June 2009
200
180
160
140
120
100
80
60
40
20
0
All Ordinaries Property Index Westfield Group Indexed
2004 2005 2006 2007 2008
45%The amount of the Property Index represented by Westfield Group at 30 June 2009.
2009 BDO A-REIT Survey26
The one year performance to 30 June 2009 relative to the All Ordinaries is graphed below. As mentioned in the 2008 Survey, whereas the Property Index was has historically been a defensive sector in difficult times, property related enterprises have been punished far more than the broader market.
Again, Westfield Group has outperformed the Property Index and for the first half of FY09 also outperformed the All Ordinaries. We have outlined below some key reasons why Westfield Group has performed so resiliently.
Westfield Group:
• ishighlygeographicallydiversified,thestrongperformanceoftheAustralianretailsectorhasoffsetthedecliningfundamentalsintheUKandUSAregions;
• hasstrongbargainingpowerduetoitsscalewhichfacilitatesfavourabletermswithtenantsleadingtorelativelymorestablecashflows;
• hasgearing(35%)belowthemarketaverage(46%);and
• hasaleaseexpiry(10years)wellabovethemarketaverage(6-8years).
All Ordinaries vs Property Index – 1 July 2008 to 30 June 2009
130
120
110
100
90
80
70
60
50
40
All Ordinaries Property Index Westfield Group Indexed
Jul2008
Aug2008
Sep2008
Oct2008
Nov2008
Dec2008
Jan2009
Feb2009
Mar2009
Apr2009
May2009
Jun2009
2009 BDO A-REIT Survey 27
3.6 Market performance of A-REIT sector year to October 2009
Both the All Ordinaries and the Property Index have rallied since 30 June 2009. At the time of writing the BDO Survey the Property Index had outperformed the All Ordinaries over the four months to 22 October 2009, increasing by 32% relative to the 24% increase in the All Ordinaries.
The Property Index has recovered partly as a result of the significant capital raisings undertaken during FY09 and generally improving economic confidence, particularly in Australia. The capital raisings have somewhat “de-risked” many Property Index members relative to their position prior to the capital raisings due to lower gearing levels and resolving covenant breaches.
All Ordinaries vs Property Index – July 2009 to October 2009
90
95
100
105
110
115
120
125
130
135
140
All Ordinaries Property Index
Jul2009
Aug2009
Sep2009
Oct2009
32%The appreciation of the Property Index over the period from 1 July 2009 to 22 October 2009.
2009 BDO A-REIT Survey28
3.7 Asset values and write downs
Over 90% of the entities covered in the BDO Survey have seen their property valuations fall over the year. This has led to a decline in value of the gross property assets of the Sector as a whole of 9% since 30 June 2008.
Gross property assets including by region for the five years to 30 June 2009
Europe AsiaAustralia US NZ
160
140
120
100
80
60
40
20
FY05 FY06 FY07 FY08 FY09
Gro
ss p
rope
rty
asse
ts ($
bill
ion)
2009 BDO A-REIT Survey 29
The ranges in size of percentage write-downs of property values are expressed below. Approximately 40% of entities reported a write-down in property value of greater than 20%. The largest write-down as a percentage of property values was Macquarie DDR Trust (44%) whereas only four entities, (all developers), recorded no write-down (AV Jennings Limited, Becton Property Group, Devine Limited and Lend Lease Corporation).
Property write-downs ranges (by percentage of property value written down)
0
5
10
15
20
25
0-(10)% (10) - (20)% (20) - (30)% (30) - (40)% (40) - (50)%
Num
ber o
f ent
ities
40%The number of entities reporting write downs of greater than 20% for FY09.
Over 90% of entities covered in the BDO Survey have reported a fall in property value during FY09. As discussed further at Section 3.8 significant capital raisings have been undertaken to dilute the effects of these devaluations.
2009 BDO A-REIT Survey30
We have provided the average percentage size of the write-downs by sector. The average percentage write-down was approximately 16% and most sectors were around this level except for development (10%) and industrial estates (28%).
The large decline in Industrial Estates was a product of large write-downs by Mirvac Industrial Estate 43%, Challenger Wine Trust 30% and the ING Industrial Fund 25%. We note there are only four entities in the Industrial Estates sector.
Average percentage property write-down by sector
30%
25%
20%
15%
10%
5%
0%Overall average
Retail shopping centres
Industrial estates
Hotels, pubs & entertainment
precincts
Office buildings
Multi sector Development
2009 BDO A-REIT Survey 31
GPT Group Westfield Group
Stockland Corporation
Mirvac Group Dexus Property Group
Goodman Limited
Other
3,500
3,000
2,500
2,000
1,500
1,000
500
-
($) b
illio
n
3.8 Capital raisings
FY09 has been characterised by a significant number of capital raisings. We have collated data based on those entities who increased their contributed equity by greater than 10% during FY09 and present the findings below. The total amount of capital raised during FY09 by those entities was $15.6 billion.
The funds were used by the entities primarily to reduce debt and gearing ratios (which had been affected by property devaluations and falls in the value of other assets) and otherwise strengthen their financial positions.
Capital raisings by entity
$15.6 bIllIonCapital raised by entities who increased contributed equity by greater than 10% during FY09. The proceeds have been used to offset the effects of property value write-downs and stabilise gearing levels.
2009 BDO A-REIT Survey32
3.9 Gearing analysis
Gearing (defined as total borrowings divided by total assets) has continued to increase during FY09 with the average gearing of survey participants increasing to 46% from the FY08 level of 44%. The increase has been caused by significant property devaluations and write-downs in the value of other assets, as opposed to increased borrowing by survey participants. Had it not been for the capital raisings discussed at Section 3.8 gearing would have increased further.
Survey participants average gearing history
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 200915%
20%
25%
30%
35%
40%
45%
50%
With the exception of 2007 gearing has increased every year since 1998, when it was less than 20%
2009 BDO A-REIT Survey 33
We have also analysed average gearing by sector. Average gearing increased in the more traditional property trust sectors, including retail, industrial estates and commercial. These were the sectors that experienced the largest write downs in property asset values.
The Multi sector entities experienced a slight increase in gearing whereas the developers have seen a marked reduction from c43% to c36%. Notable decreases in gearing in this sector include AV Jennings Limited (from 46% to 21%), Cedar Woods Properties Limited (from 96% to 51%), FKP Property Group (from 40% to 28%) and Sunland Group Limited (from 8% to 5%). These developers reduced debt levels throughout the year (an average of 33% reduction) in order to achieve the lower gearing reflected below.
Average gearing by sector with prior year comparison
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Overall Retail shopping centres
Industrialestates
Hotels, Pubs & Entertainment
precincts
Officebuildings
Mul� sector Development
30-Jun-08 30-Jun-09
2%Increase in simple average gearing of survey participants compared with previous year.
2009 BDO A-REIT Survey34
3.10 Location of property assets
A majority of property assets owned by the BDO Survey participants are located in Australia (63%). The next largest geographical concentration is the USA, with approximately 27% of entities owning some property assets there. Six entities continue to own property assets in the USA totalling greater than $1bn, these are Centro Properties Group, Dexus Property Group, Macquarie DDR Trust, Macquarie Office Trust, Tishman Speyer Office Trust and Westfield Group.
Location of property assets
Europe AsiaAustralia US NZ
FY07 FY08 FY09
Europe AsiaAustralia US NZ
Europe AsiaUS NZAustralia (63%) (27%) (7%) (2%) (1%)
2009 BDO A-REIT Survey 35
We have also included the breakdown of the international property assets and the total value of international assets over the five years to 30 June 2009. There was a decline in the value of the international assets during FY09, driven mainly by a decline in USA property assets.
Location and value of international assets for the five years to 30 June 2009
60
50
40
30
20
10
-FY05 FY06 FY07 FY08 FY09
Europe NZUS Asia
63%Percentage of property assets located in Australia
2009 BDO A-REIT Survey36
3.11 Weighted average interest rates
The weighted average interest rate on borrowings (“WAIR”) reflects a number of factors including the lender’s assessment of the borrower’s risk and of the quality and location of assets securing the borrowings, and the borrower’s gearing and interest coverage. Overall during FY09 the average WAIR fell from 6.49% to 5.37%, a result of a reduction in the Reserve Bank of Australia’s cash rate target over that approximate period from 7.25% at the beginning of FY09 to 3.00% at the end of FY09. This would indicate that as a result of hedging and fixed interest borrowings, interest rates are not as sensitive to movements in cash rates.
The Development sector again recorded the highest weighted average interest rate of 6% (nearly a percentage lower than the previous year WAIR of 7%).
Consistent with previous years the retail and hotels, pubs and entertainment precincts are the sectors that recorded the lowest results.
Weighted average interest rate by sector with prior year comparison
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
Overall Retail shoppingcentres
Industrialestates
Hotels, Pubs &Entertainment
precincts
Officebuildings
Multi sector Development
30-Jun-08 30-Jun-09
2009 BDO A-REIT Survey 37
3.12 Weighted average lease expiry
The weighted average term to expiry for leases (“WALE”) is a measure of the security and stability of future tenure and income, however, a shorter term to expiry in some situations may be viewed as a positive as it allows for earlier rental re-negotiations to take advantage of any market movements.
Hotels, pubs and entertainment precincts again had the highest average lease expiry of 16 years, a result of Ale Property Group (19 years), Hedley Leisure and Gaming Property Fund (16 years) and the ING Real Estate Entertainment Fund (12 years) having above average WALEs.
The sector with the shortest WALE is industrial estates at 4 years, a reduction from the 7 years for FY08.
Weighted average lease expiry by sector with prior year comparison
-
2
4
6
8
10
12
14
16
18
Overall Retail shoppingcentres
Industrialestates
Hotels, Pubs &Entertainment
precincts
Officebuildings
Multi sector Development
30-Jun-08 30-Jun-09
6.8 yEARSThe average weighted average lease expiry of all participants.
4full RAnkIngS
2009 BDO A-REIT Survey40
full RAnkIngS
Entity current year rank prior year rank
ING Real Estate Healthcare Fund 1 N/A
Ardent Leisure Group 2 46
ALE Property Group 3 7
Cromwell Group 4 3
CFS Retail Property Trust 5 9
Bunnings Warehouse Property Trust 6 31
Westfield Group 7 8
Lend Lease Corporation 8 14
Carindale Property Trust 9 30
Westpac Office Trust 10 37
Macquarie CountryWide Trust 11 40
GEO Property Group 12 50
Stockland Corporation 13 24
Cedar Woods Properties Limited 14 29
Challenger Diversified Property Group 15 18
Real Estate Capital Partners USA Property Trust 16 33
Commonwealth Property Office Fund 17 15
Devine Limited 18 1
Challenger Wine Trust 19 2
Astro Japan Property Trust 20 20
Dexus Property Group 21 22
ING Office Fund 22 28
Australand Property Group 23 4
Charter Hall Group 24 36
Peet Limited 25 N/A
Sunland Group Limited 26 10
Mirvac Industrial Trust 27 53
Australian Education Trust 28 34
RNY Property Trust 29 49
2009 BDO A-REIT Survey 41
Entity current year rank prior year rank
Abacus Property Group 30 13
Challenger Kenedix Japan Trust 31 19
Multiplex European Property Fund 32 17
Trafalgar Corporate Group 33 54
Rabinov Property Trust 34 6
AV Jennings Limited 35 56
Goodman Limited 36 11
Aspen Group 37 12
Growthpoint Properties Australia 38 35
GPT Group 39 41
Hedley Leisure & Gaming Property Fund 40 52
Mirvac Group 41 32
Macquarie Office Trust 42 39
ING Real Estate Community Living Group 43 44
Mirvac Real Estate Investment Trust 44 47
Thakral Holdings Group 45 23
ING Real Estate Entertainment Fund 46 38
Centro Properties Group 47 58
ING Industrial Fund 48 16
Becton Property Group Limited 49 5
Macquarie DDR Trust 50 43
Galileo Japan Trust 51 26
Prime Retirement & Aged Care Property Trust 52 21
Centro Retail Trust 53 57
Valad Property Group 54 48
Tishman Speyer Office Fund 55 25
FKP Property Group 56 27
APN UKA European Retail Trust 57 55
Trinity Group 58 42
Four entities that ranked 30th or below last year have made the top ten this year - a great achievement.
5dETAIlEd SuRvEy RESulTS
2009 BDO A-REIT Survey44
opERATIng cASh yIEld
Entity nameoperating cash yield
Rank Entity nameoperating cash yield
Rank
Abacus Property Group 7% 32 Growthpoint Properties Australia Trust 8% 25
ALE Property Group 12% 13 Hedley Leisure & Gaming Property Fund 8% 28
APN UKA European Retail Trust 8% 26 ING Industrial Fund 5% 44
Ardent Leisure Group 14% 11 ING Office Fund 4% 50
Aspen Group 4% 46 ING Real Estate Community Living Group 12% 14
Astro Japan Property Trust 8% 29 ING Real Estate Entertainment Fund 9% 21
Australand Property Group 10% 18 ING Real Estate Healthcare Fund 9% 20
Australian Education Trust 7% 33 Lend Lease Corporation 14% 10
AV Jennings Limited 26% 6 Macquarie CountryWide Trust 11% 15
Becton Property Group Limited 33% 3 Macquarie DDR Trust 5% 42
Bunnings Warehouse Property Trust 7% 37 Macquarie Office Trust 7% 30
Carindale Property Trust 5% 41 Mirvac Group 1% 55
Cedar Woods Properties Limited 37% 2 Mirvac Industrial Trust 6% 38
Centro Properties Group 25% 7 Mirvac Real Estate Investment Trust 4% 49
Centro Retail Trust 3% 53 Multiplex European Property Fund 15% 9
CFS Retail Property Trust 5% 43 Peet Limited 3% 52
Challenger Diversified Property Group 9% 22 Prime Retirement & Aged Care Property Trust 4% 47
Challenger Kenedix Japan Trust 10% 16 Rabinov Property Trust 5% 45
Challenger Wine Trust 8% 24 Real Estate Capital Partners USA Property Trust 14% 12
Charter Hall Group 8% 23 RNY Property Trust 5% 40
Commonwealth Property Office Fund 7% 34 Stockland Corporation 8% 27
Cromwell Group 9% 19 Sunland Group Limited 27% 5
Devine Limited 27% 4 Thakral Holdings Group 3% 51
Dexus Property Group 7% 35 Tishman Speyer Office Fund -1% 57
FKP Property Group 2% 54 Trafalgar Corporate Group 10% 17
Galileo Japan Trust 18% 8 Trinity Group -3% 58
GEO Property Group 46% 1 Valad Property Group -1% 56
Goodman Limited 7% 31 Westfield Group 7% 36
GPT Group 4% 48 Westpac Office Trust 6% 39
2009 BDO A-REIT Survey 45
Trinity Group
Tishman Speyer Office Fund
Valad Property Group
Mirvac Group
FKP Property Group
Centro Retail Trust
Peet Limited
Thakral Holdings Group
ING Office Fund
Mirvac Real Estate Investment Trust
GPT Group
Prime Retirement & Aged Care Property Trust
Aspen Group
Rabinov Property Trust
ING Industrial Fund
CFS Retail Property Trust
Macquarie DDR Trust
Carindale Property Trust
RNY Property Trust
Westpac Office Trust
Mirvac Industrial Trust
Bunnings Warehouse Property Trust
Westfield Group
Dexus Property Group
Commonwealth Property Office Fund
Australian Education Trust
Abacus Property Group
Goodman Limited
Macquarie Office Trust
Astro Japan Property Trust
Hedley Leisure & Gaming Property Fund
Stockland Corporation
APN UKA European Retail Trust
Growthpoint Properties Australia
Challenger Wine Trust
Charter Hall Group
Challenger Diversified Property Group
ING Real Estate Entertainment Fund
ING Real Estate Healthcare Fund
Cromwell Group
Australand Property Group
Trafalgar Corporate Group
Challenger Kenedix Japan Trust
Macquarie CountryWide Trust
ING Real Estate Community Living Group
ALE Property Group
Real Estate Capital Partners USA Property Trust
Ardent Leisure Group
Lend Lease Corporation
Multiplex European Property Fund
Galileo Japan Trust
Centro Properties Group
AV Jennings Limited
Sunland Group Limited
Devine Limited
Becton Property Group Limited
Cedar Woods Properties Limited
GEO Property Group
-5.00% 5.00% 15.00% 25.00% 35.00% 45.00%
Units Stapled Entities/Companies
10%Average operating cash yield of all participants
2009 BDO A-REIT Survey46
dISTRIbuTIon RETuRn on InvESTmEnT
Entity namedistribution
return on investment
Rank Entity namedistribution
return on investment
Rank
Abacus Property Group 14% 8 Growthpoint Properties Australia Trust 14% 10
ALE Property Group 13% 15 Hedley Leisure & Gaming Property Fund 10% 22
APN UKA European Retail Trust 0% 58 ING Industrial Fund 9% 30
Ardent Leisure Group 11% 20 ING Office Fund 12% 19
Aspen Group 14% 11 ING Real Estate Community Living Group 10% 23
Astro Japan Property Trust 20% 2 ING Real Estate Entertainment Fund 8% 33
Australand Property Group 14% 12 ING Real Estate Healthcare Fund 12% 16
Australian Education Trust 12% 18 Lend Lease Corporation 5% 41
AV Jennings Limited 0% 57 Macquarie CountryWide Trust 14% 9
Becton Property Group Limited 0% 56 Macquarie DDR Trust 0% 54
Bunnings Warehouse Property Trust 7% 39 Macquarie Office Trust 9% 27
Carindale Property Trust 8% 35 Mirvac Group 5% 42
Cedar Woods Properties Limited 5% 44 Mirvac Industrial Trust 18% 4
Centro Properties Group 0% 55 Mirvac Real Estate Investment Trust 8% 31
Centro Retail Trust 3% 47 Multiplex European Property Fund 19% 3
CFS Retail Property Trust 7% 38 Peet Limited 4% 46
Challenger Diversified Property Group 13% 13 Prime Retirement & Aged Care Property Trust 4% 45
Challenger Kenedix Japan Trust 12% 17 Rabinov Property Trust 5% 40
Challenger Wine Trust 18% 5 Real Estate Capital Partners USA Property Trust 26% 1
Charter Hall Group 10% 24 RNY Property Trust 17% 6
Commonwealth Property Office Fund 8% 32 Stockland Corporation 9% 29
Cromwell Group 14% 7 Sunland Group Limited 9% 28
Devine Limited 5% 43 Thakral Holdings Group 2% 48
Dexus Property Group 7% 37 Tishman Speyer Office Fund 0% 53
FKP Property Group 2% 49 Trafalgar Corporate Group 9% 25
Galileo Japan Trust 0% 50 Trinity Group 0% 52
GEO Property Group 13% 14 Valad Property Group 0% 51
Goodman Limited 8% 34 Westfield Group 8% 36
GPT Group 9% 26 Westpac Office Trust 11% 21
2009 BDO A-REIT Survey 47
9%Average distribution return on investment of all participants
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
APN UKA European Retail Trust
AV Jennings Limited
Becton Property Group Limited
Centro Properties Group
Macquarie DDR Trust
Tishman Speyer Office Fund
Trinity Group
Valad Property Group
Galileo Japan Trust
FKP Property Group
Thakral Holdings Group
Centro Retail Trust
Peet Limited
Prime Retirement & Aged Care
Cedar Woods Properties Limited
Devine Limited
Mirvac Group
Lend Lease Corporation
Rabinov Property Trust
Bunnings Warehouse Property
CFS Retail Property Trust
Dexus Property Group
Westfield Group
Carindale Property Trust
Goodman Limited
ING Real Estate Entertainment
Commonwealth Property Office
Mirvac Real Estate Investment
ING Industrial Fund
Stockland Corporation
Sunland Group Limited
Macquarie Office Trust
GPT Group
Trafalgar Corporate Group
Charter Hall Group
ING Real Estate Community
Hedley Leisure & Gaming
Westpac Office Trust
Ardent Leisure Group
ING Office Fund
Australian Education Trust
Challenger Kenedix Japan Trust
ING Real Estate Healthcare Fund
ALE Property Group
GEO Property Group
Challenger Diversified Property
Australand Property Group
Aspen Group
Growthpoint Properties Australia
Macquarie CountryWide Trust
Abacus Property Group
Cromwell Group
RNY Property Trust
Challenger Wine Trust
Mirvac Industrial Trust
Multiplex European Property Fund
Astro Japan Property Trust
Real Estate Capital Partners USA
Units Stapled Entities/Companies
2009 BDO A-REIT Survey48
TAx AdvAnTAgEd dISTRIbuTIon
Entity nameTax
advantaged distribution
Rank Entity nameTax
advantaged distribution
Rank
Abacus Property Group 20% 30 Growthpoint Properties Australia Trust 0% 46
ALE Property Group 82% 13 Hedley Leisure & Gaming Property Fund 100% 2
APN UKA European Retail Trust 0% 58 ING Industrial Fund 27% 26
Ardent Leisure Group 43% 21 ING Office Fund 83% 11
Aspen Group 0% 57 ING Real Estate Community Living Group 100% 3
Astro Japan Property Trust 0% 56 ING Real Estate Entertainment Fund 44% 19
Australand Property Group 47% 17 ING Real Estate Healthcare Fund 100% 4
Australian Education Trust 100% 1 Lend Lease Corporation 0% 45
AV Jennings Limited 0% 55 Macquarie CountryWide Trust 15% 32
Becton Property Group Limited 0% 54 Macquarie DDR Trust 0% 44
Bunnings Warehouse Property Trust 28% 25 Macquarie Office Trust 1% 35
Carindale Property Trust 24% 27 Mirvac Group 1% 36
Cedar Woods Properties Limited 0% 53 Mirvac Industrial Trust 100% 5
Centro Properties Group 0% 52 Mirvac Real Estate Investment Trust 0% 43
Centro Retail Trust 0% 51 Multiplex European Property Fund 47% 16
CFS Retail Property Trust 53% 15 Peet Limited 0% 42
Challenger Diversified Property Group 43% 20 Prime Retirement & Aged Care Property Trust 20% 29
Challenger Kenedix Japan Trust 16% 31 Rabinov Property Trust 100% 6
Challenger Wine Trust 12% 33 Real Estate Capital Partners USA Property Trust 0% 41
Charter Hall Group 37% 22 RNY Property Trust 100% 7
Commonwealth Property Office Fund 7% 34 Stockland Corporation 24% 28
Cromwell Group 82% 12 Sunland Group Limited 0% 40
Devine Limited 0% 50 Thakral Holdings Group 94% 10
Dexus Property Group 34% 23 Tishman Speyer Office Fund 0% 39
FKP Property Group 0% 49 Trafalgar Corporate Group 100% 8
Galileo Japan Trust 0% 48 Trinity Group 0% 38
GEO Property Group 0% 47 Valad Property Group 0% 37
Goodman Limited 30% 24 Westfield Group 60% 14
GPT Group 45% 18 Westpac Office Trust 100% 9
2009 BDO A-REIT Survey 49
33%Average tax advantaged distribution of all participants
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%
APN UKA European Retail Trust
Aspen Group
Astro Japan Property Trust
AV Jennings Limited
Becton Property Group Limited
Cedar Woods Properties Limited
Centro Properties Group
Centro Retail Trust
Devine Limited
FKP Property Group
Galileo Japan Trust
GEO Property Group
Growthpoint Properties Australia
Lend Lease Corporation
Macquarie DDR Trust
Mirvac Real Estate Investment
Peet Limited
Real Estate Capital Partners USA
Sunland Group Limited
Tishman Speyer Office Fund
Trinity Group
Valad Property Group
Mirvac Group
Macquarie Office Trust
Commonwealth Property Office
Challenger Wine Trust
Macquarie CountryWide Trust
Challenger Kenedix Japan Trust
Abacus Property Group
Prime Retirement & Aged Care
Stockland Corporation
Carindale Property Trust
ING Industrial Fund
Bunnings Warehouse Property
Goodman Limited
Dexus Property Group
Charter Hall Group
Ardent Leisure Group
Challenger Diversified Property
ING Real Estate Entertainment
GPT Group
Australand Property Group
Multiplex European Property Fund
CFS Retail Property Trust
Westfield Group
ALE Property Group
Cromwell Group
ING Office Fund
Thakral Holdings Group
Westpac Office Trust
Trafalgar Corporate Group
RNY Property Trust
Rabinov Property Trust
Mirvac Industrial Trust
ING Real Estate Healthcare Fund
ING Real Estate Community
Hedley Leisure & Gaming
Australian Education Trust
Units Stapled Entities/Companies
2009 BDO A-REIT Survey50
movEmEnT In nTA
Entity namemovement
in nTARank Entity name
movement in nTA
Rank
Abacus Property Group -55% 41 Growthpoint Properties Australia Trust -65% 48
ALE Property Group 0% 3 Hedley Leisure & Gaming Property Fund -62% 46
APN UKA European Retail Trust -59% 45 ING Industrial Fund -54% 39
Ardent Leisure Group -27% 17 ING Office Fund -45% 35
Aspen Group -52% 38 ING Real Estate Community Living Group -57% 44
Astro Japan Property Trust -33% 22 ING Real Estate Entertainment Fund -32% 20
Australand Property Group -45% 34 ING Real Estate Healthcare Fund -15% 10
Australian Education Trust -16% 12 Lend Lease Corporation -25% 16
AV Jennings Limited -8% 6 Macquarie CountryWide Trust -57% 43
Becton Property Group Limited -86% 57 Macquarie DDR Trust -64% 47
Bunnings Warehouse Property Trust -16% 11 Macquarie Office Trust -68% 51
Carindale Property Trust -2% 4 Mirvac Group -54% 40
Cedar Woods Properties Limited 5% 2 Mirvac Industrial Trust -66% 49
Centro Properties Group -423% 58 Mirvac Real Estate Investment Trust -34% 24
Centro Retail Trust -76% 55 Multiplex European Property Fund -68% 52
CFS Retail Property Trust -13% 9 Peet Limited -11% 7
Challenger Diversified Property Group -13% 8 Prime Retirement & Aged Care Property Trust -49% 36
Challenger Kenedix Japan Trust 6% 1 Rabinov Property Trust -32% 21
Challenger Wine Trust -39% 28 Real Estate Capital Partners USA Property Trust -34% 25
Charter Hall Group -40% 31 RNY Property Trust -21% 13
Commonwealth Property Office Fund -29% 19 Stockland Corporation -34% 26
Cromwell Group -25% 15 Sunland Group Limited -29% 18
Devine Limited -3% 5 Thakral Holdings Group -40% 29
Dexus Property Group -43% 33 Tishman Speyer Office Fund -70% 53
FKP Property Group -38% 27 Trafalgar Corporate Group -33% 23
Galileo Japan Trust -42% 32 Trinity Group -67% 50
GEO Property Group -40% 30 Valad Property Group -75% 54
Goodman Limited -57% 42 Westfield Group -22% 14
GPT Group -81% 56 Westpac Office Trust -52% 37
2009 BDO A-REIT Survey 51
46%Average decline in NTA of all survey participants over FY09
-450.00% -400.00% -350.00% -300.00% -250.00% -200.00% -150.00% -100.00% -50.00% 0.00% 50.00%
Centro Properties Group
Becton Property Group Limited
GPT Group
Centro Retail Trust
Valad Property Group
Tishman Speyer Office Fund
Multiplex European Property Fund
Macquarie Office Trust
Trinity Group
Mirvac Industrial Trust
Growthpoint Properties Australia
Macquarie DDR Trust
Hedley Leisure & Gaming Property Fund
APN UKA European Retail Trust
ING Real Estate Community Living Group
Macquarie CountryWide Trust
Goodman Limited
Abacus Property Group
Mirvac Group
ING Industrial Fund
Aspen Group
Westpac Office Trust
Prime Retirement & Aged Care Property Trust
ING Office Fund
Australand Property Group
Dexus Property Group
Galileo Japan Trust
Charter Hall Group
GEO Property Group
Thakral Holdings Group
Challenger Wine Trust
FKP Property Group
Stockland Corporation
Real Estate Capital Partners USA Property Trust
Mirvac Real Estate Investment Trust
Trafalgar Corporate Group
Astro Japan Property Trust
Rabinov Property Trust
ING Real Estate Entertainment Fund
Commonwealth Property Office Fund
Sunland Group Limited
Ardent Leisure Group
Lend Lease Corporation
Cromwell Group
Westfield Group
RNY Property Trust
Australian Education Trust
Bunnings Warehouse Property Trust
ING Real Estate Healthcare Fund
CFS Retail Property Trust
Challenger Diversified Property Group
Peet Limited
AV Jennings Limited
Devine Limited
Carindale Property Trust
ALE Property Group
Cedar Woods Properties Limited
Challenger Kenedix Japan Trust
Units Stapled Entities/Companies
2009 BDO A-REIT Survey52
pREmIum/(dIScounT) To nTA
Trust namepremium/
(discount) to nTA
Rank Trust namepremium/
(discount) to nTA
Rank
Abacus Property Group -46% 25 Growthpoint Properties Australia Trust -65% 42
ALE Property Group -23% 13 Hedley Leisure & Gaming Property Fund -74% 50
APN UKA European Retail Trust -80% 55 ING Industrial Fund -60% 33
Ardent Leisure Group -8% 5 ING Office Fund -40% 20
Aspen Group -38% 19 ING Real Estate Community Living Group -77% 52
Astro Japan Property Trust -61% 36 ING Real Estate Entertainment Fund -64% 41
Australand Property Group -66% 43 ING Real Estate Healthcare Fund -41% 21
Australian Education Trust -77% 51 Lend Lease Corporation 53% 1
AV Jennings Limited -62% 39 Macquarie CountryWide Trust -61% 38
Becton Property Group Limited -61% 37 Macquarie DDR Trust -79% 54
Bunnings Warehouse Property Trust -12% 6 Macquarie Office Trust -57% 32
Carindale Property Trust -37% 18 Mirvac Group -42% 22
Cedar Woods Properties Limited -4% 4 Mirvac Industrial Trust -70% 47
Centro Properties Group 0% 58 Mirvac Real Estate Investment Trust -63% 40
Centro Retail Trust -84% 57 Multiplex European Property Fund -52% 28
CFS Retail Property Trust -14% 9 Peet Limited 21% 2
Challenger Diversified Property Group -47% 26 Prime Retirement & Aged Care Property Trust -67% 44
Challenger Kenedix Japan Trust -74% 49 Rabinov Property Trust -36% 16
Challenger Wine Trust -36% 17 Real Estate Capital Partners USA Property Trust -60% 34
Charter Hall Group -47% 27 RNY Property Trust -83% 56
Commonwealth Property Office Fund -22% 12 Stockland Corporation -13% 8
Cromwell Group -29% 14 Sunland Group Limited -20% 10
Devine Limited -21% 11 Thakral Holdings Group -55% 29
Dexus Property Group -29% 15 Tishman Speyer Office Fund -61% 35
FKP Property Group -57% 31 Trafalgar Corporate Group -71% 48
Galileo Japan Trust -79% 53 Trinity Group -46% 24
GEO Property Group -67% 45 Valad Property Group -70% 46
Goodman Limited -13% 7 Westfield Group 6% 3
GPT Group -55% 30 Westpac Office Trust -42% 23
2009 BDO A-REIT Survey 53
46%Average discount to NTA of all participants
-100.00% -80.00% -60.00% -40.00% -20.00% 0.00% 20.00% 40.00% 60.00%
Centro Retail Trust
RNY Property Trust
APN UKA European Retail Trust
Macquarie DDR Trust
Galileo Japan Trust
ING Real Estate Community Living Group
Australian Education Trust
Hedley Leisure & Gaming Property Fund
Challenger Kenedix Japan Trust
Trafalgar Corporate Group
Mirvac Industrial Trust
Valad Property Group
GEO Property Group
Prime Retirement & Aged Care Property Trust
Australand Property Group
Growthpoint Properties Australia
ING Real Estate Entertainment Fund
Mirvac Real Estate Investment Trust
AV Jennings Limited
Macquarie CountryWide Trust
Becton Property Group Limited
Astro Japan Property Trust
Tishman Speyer Office Fund
Real Estate Capital Partners USA Property Trust
ING Industrial Fund
Macquarie Office Trust
FKP Property Group
GPT Group
Thakral Holdings Group
Multiplex European Property Fund
Charter Hall Group
Challenger Diversified Property Group
Abacus Property Group
Trinity Group
Westpac Office Trust
Mirvac Group
ING Real Estate Healthcare Fund
ING Office Fund
Aspen Group
Carindale Property Trust
Challenger Wine Trust
Rabinov Property Trust
Dexus Property Group
Cromwell Group
ALE Property Group
Commonwealth Property Office Fund
Devine Limited
Sunland Group Limited
CFS Retail Property Trust
Stockland Corporation
Goodman Limited
Bunnings Warehouse Property Trust
Ardent Leisure Group
Cedar Woods Properties Limited
Centro Properties Group
Westfield Group
Peet Limited
Lend Lease Corporation
Units Stapled Entities/Companies
2009 BDO A-REIT Survey54
onE yEAR RETuRn
Entity name1 year return
Rank Entity name1 year return
Rank
Abacus Property Group -61% 34 Growthpoint Properties Australia Trust -47% 25
ALE Property Group -15% 6 Hedley Leisure & Gaming Property Fund -56% 31
APN UKA European Retail Trust -81% 50 ING Industrial Fund -83% 52
Ardent Leisure Group 8% 2 ING Office Fund -50% 28
Aspen Group -65% 36 ING Real Estate Community Living Group -88% 56
Astro Japan Property Trust -41% 20 ING Real Estate Entertainment Fund -76% 47
Australand Property Group -40% 18 ING Real Estate Healthcare Fund 8% 1
Australian Education Trust -54% 29 Lend Lease Corporation -20% 8
AV Jennings Limited -49% 26 Macquarie CountryWide Trust -24% 12
Becton Property Group Limited -90% 58 Macquarie DDR Trust -68% 43
Bunnings Warehouse Property Trust 5% 3 Macquarie Office Trust -69% 44
Carindale Property Trust 5% 4 Mirvac Group -57% 32
Cedar Woods Properties Limited -46% 23 Mirvac Industrial Trust -60% 33
Centro Properties Group -62% 35 Mirvac Real Estate Investment Trust -47% 24
Centro Retail Trust -67% 42 Multiplex European Property Fund -67% 39
CFS Retail Property Trust -5% 5 Peet Limited -15% 7
Challenger Diversified Property Group -22% 10 Prime Retirement & Aged Care Property Trust -80% 49
Challenger Kenedix Japan Trust -49% 27 Rabinov Property Trust -65% 37
Challenger Wine Trust -40% 19 Real Estate Capital Partners USA Property Trust -42% 22
Charter Hall Group -42% 21 RNY Property Trust -67% 41
Commonwealth Property Office Fund -27% 14 Stockland Corporation -30% 15
Cromwell Group -21% 9 Sunland Group Limited -67% 40
Devine Limited -40% 17 Thakral Holdings Group -70% 45
Dexus Property Group -37% 16 Tishman Speyer Office Fund -80% 48
FKP Property Group -83% 53 Trafalgar Corporate Group -66% 38
Galileo Japan Trust -88% 55 Trinity Group -82% 51
GEO Property Group -55% 30 Valad Property Group -89% 57
Goodman Limited -86% 54 Westfield Group -25% 13
GPT Group -71% 46 Westpac Office Trust -22% 11
2009 BDO A-REIT Survey 55
-50%Average one year return of all participants
-100.00% -80.00% -60.00% -40.00% -20.00% 0.00% 20.00%
Becton Property Group Limited
Valad Property Group
ING Real Estate Community Living Group
Galileo Japan Trust
Goodman Limited
FKP Property Group
ING Industrial Fund
Trinity Group
APN UKA European Retail Trust
Prime Retirement & Aged Care Property Trust
Tishman Speyer Office Fund
ING Real Estate Entertainment Fund
GPT Group
Thakral Holdings Group
Macquarie Office Trust
Macquarie DDR Trust
Centro Retail Trust
RNY Property Trust
Sunland Group Limited
Multiplex European Property Fund
Trafalgar Corporate Group
Rabinov Property Trust
Aspen Group
Centro Properties Group
Abacus Property Group
Mirvac Industrial Trust
Mirvac Group
Hedley Leisure & Gaming Property Fund
GEO Property Group
Australian Education Trust
ING Office Fund
Challenger Kenedix Japan Trust
AV Jennings Limited
Growthpoint Properties Australia
Mirvac Real Estate Investment Trust
Cedar Woods Properties Limited
Real Estate Capital Partners USA Property Trust
Charter Hall Group
Astro Japan Property Trust
Challenger Wine Trust
Australand Property Group
Devine Limited
Dexus Property Group
Stockland Corporation
Commonwealth Property Office Fund
Westfield Group
Macquarie CountryWide Trust
Westpac Office Trust
Challenger Diversified Property Group
Cromwell Group
Lend Lease Corporation
Peet Limited
ALE Property Group
CFS Retail Property Trust
Carindale Property Trust
Bunnings Warehouse Property Trust
Ardent Leisure Group
ING Real Estate Healthcare Fund
Units Stapled Entities/Companies
2009 BDO A-REIT Survey56
ThREE yEAR RETuRn
Entity name3 year return
Rank Entity name3 year return
Rank
Abacus Property Group -31% 26 Growthpoint Properties Australia Trust -54% 50
ALE Property Group 4% 2 Hedley Leisure & Gaming Property Fund -70% 57
APN UKA European Retail Trust -63% 56 ING Industrial Fund -48% 46
Ardent Leisure Group -9% 7 ING Office Fund -22% 18
Aspen Group -31% 27 ING Real Estate Community Living Group -61% 55
Astro Japan Property Trust -30% 25 ING Real Estate Entertainment Fund -45% 41
Australand Property Group -26% 20 ING Real Estate Healthcare Fund -5% 5
Australian Education Trust -40% 36 Lend Lease Corporation -16% 15
AV Jennings Limited -34% 34 Macquarie CountryWide Trust -23% 19
Becton Property Group Limited -54% 49 Macquarie DDR Trust -48% 45
Bunnings Warehouse Property Trust 1% 4 Macquarie Office Trust -41% 37
Carindale Property Trust 5% 1 Mirvac Group -31% 32
Cedar Woods Properties Limited -29% 24 Mirvac Industrial Trust -50% 47
Centro Properties Group -75% 58 Mirvac Real Estate Investment Trust -32% 33
Centro Retail Trust -58% 52 Multiplex European Property Fund -58% 53
CFS Retail Property Trust 2% 3 Peet Limited -21% 17
Challenger Diversified Property Group -31% 31 Prime Retirement & Aged Care Property Trust -31% 28
Challenger Kenedix Japan Trust -31% 30 Rabinov Property Trust -28% 23
Challenger Wine Trust -16% 14 Real Estate Capital Partners USA Property Trust -37% 35
Charter Hall Group -20% 16 RNY Property Trust -53% 48
Commonwealth Property Office Fund -9% 8 Stockland Corporation -16% 13
Cromwell Group -13% 11 Sunland Group Limited -28% 22
Devine Limited -14% 12 Thakral Holdings Group -27% 21
Dexus Property Group -12% 10 Tishman Speyer Office Fund -47% 44
FKP Property Group -44% 39 Trafalgar Corporate Group -43% 38
Galileo Japan Trust -31% 29 Trinity Group -46% 43
GEO Property Group -46% 42 Valad Property Group -59% 54
Goodman Limited -57% 51 Westfield Group -8% 6
GPT Group -44% 40 Westpac Office Trust -12% 9
2009 BDO A-REIT Survey 57
-33%Average three year return of all participants
-80.00% -70.00% -60.00% -50.00% -40.00% -30.00% -20.00% -10.00% 0.00% 10.00%
Centro Properties Group
Hedley Leisure & Gaming Property Fund
APN UKA European Retail Trust
ING Real Estate Community Living Group
Valad Property Group
Multiplex European Property Fund
Centro Retail Trust
Goodman Limited
Growthpoint Properties Australia
Becton Property Group Limited
RNY Property Trust
Mirvac Industrial Trust
ING Industrial Fund
Macquarie DDR Trust
Tishman Speyer Office Fund
Trinity Group
GEO Property Group
ING Real Estate Entertainment Fund
GPT Group
FKP Property Group
Trafalgar Corporate Group
Macquarie Office Trust
Australian Education Trust
Real Estate Capital Partners USA Property Trust
AV Jennings Limited
Mirvac Real Estate Investment Trust
Mirvac Group
Challenger Diversified Property Group
Challenger Kenedix Japan Trust
Galileo Japan Trust
Prime Retirement & Aged Care Property Trust
Aspen Group
Abacus Property Group
Astro Japan Property Trust
Cedar Woods Properties Limited
Rabinov Property Trust
Sunland Group Limited
Thakral Holdings Group
Australand Property Group
Macquarie CountryWide Trust
ING Office Fund
Peet Limited
Charter Hall Group
Lend Lease Corporation
Challenger Wine Trust
Stockland Corporation
Devine Limited
Cromwell Group
Dexus Property Group
Westpac Office Trust
Commonwealth Property Office Fund
Ardent Leisure Group
Westfield Group
ING Real Estate Healthcare Fund
Bunnings Warehouse Property Trust
CFS Retail Property Trust
ALE Property Group
Carindale Property Trust
Units Stapled Entities/Companies
2009 BDO A-REIT Survey58
lIQuIdITy
Entity name liquidity Rank Entity name liquidity Rank
Abacus Property Group 111% 19 Growthpoint Properties Australia Trust 36% 40
ALE Property Group 20% 44 Hedley Leisure & Gaming Property Fund 10% 53
APN UKA European Retail Trust 83% 28 ING Industrial Fund 146% 10
Ardent Leisure Group 51% 34 ING Office Fund 124% 15
Aspen Group 76% 29 ING Real Estate Community Living Group 103% 22
Astro Japan Property Trust 132% 14 ING Real Estate Entertainment Fund 39% 38
Australand Property Group 44% 36 ING Real Estate Healthcare Fund 17% 46
Australian Education Trust 47% 35 Lend Lease Corporation 87% 26
AV Jennings Limited 5% 57 Macquarie CountryWide Trust 164% 8
Becton Property Group Limited 115% 18 Macquarie DDR Trust 233% 4
Bunnings Warehouse Property Trust 54% 33 Macquarie Office Trust 173% 7
Carindale Property Trust 9% 55 Mirvac Group 159% 9
Cedar Woods Properties Limited 9% 54 Mirvac Industrial Trust 84% 27
Centro Properties Group 243% 3 Mirvac Real Estate Investment Trust 12% 52
Centro Retail Trust 138% 12 Multiplex European Property Fund 13% 51
CFS Retail Property Trust 104% 21 Peet Limited 14% 49
Challenger Diversified Property Group 30% 41 Prime Retirement & Aged Care Property Trust 14% 50
Challenger Kenedix Japan Trust 40% 37 Rabinov Property Trust 0% 58
Challenger Wine Trust 25% 42 Real Estate Capital Partners USA Property Trust 17% 45
Charter Hall Group 91% 23 RNY Property Trust 89% 25
Commonwealth Property Office Fund 119% 16 Stockland Corporation 140% 11
Cromwell Group 17% 47 Sunland Group Limited 89% 24
Devine Limited 9% 56 Thakral Holdings Group 15% 48
Dexus Property Group 132% 13 Tishman Speyer Office Fund 198% 5
FKP Property Group 75% 30 Trafalgar Corporate Group 39% 39
Galileo Japan Trust 117% 17 Trinity Group 68% 31
GEO Property Group 57% 32 Valad Property Group 335% 1
Goodman Limited 291% 2 Westfield Group 108% 20
GPT Group 192% 6 Westpac Office Trust 21% 43
2009 BDO A-REIT Survey 59
86%Average liquidity of all participants.
0.00% 50.00% 100.00% 150.00% 200.00% 250.00% 300.00% 350.00%
Rabinov Property Trust
AV Jennings Limited
Devine Limited
Carindale Property Trust
Cedar Woods Properties Limited
Hedley Leisure & Gaming Property Fund
Mirvac Real Estate Investment Trust
Multiplex European Property Fund
Prime Retirement & Aged Care Property Trust
Peet Limited
Thakral Holdings Group
Cromwell Group
ING Real Estate Healthcare Fund
Real Estate Capital Partners USA Property Trust
ALE Property Group
Westpac Office Trust
Challenger Wine Trust
Challenger Diversified Property Group
Growthpoint Properties Australia
Trafalgar Corporate Group
ING Real Estate Entertainment Fund
Challenger Kenedix Japan Trust
Australand Property Group
Australian Education Trust
Ardent Leisure Group
Bunnings Warehouse Property Trust
GEO Property Group
Trinity Group
FKP Property Group
Aspen Group
APN UKA European Retail Trust
Mirvac Industrial Trust
Lend Lease Corporation
RNY Property Trust
Sunland Group Limited
Charter Hall Group
ING Real Estate Community Living Group
CFS Retail Property Trust
Westfield Group
Abacus Property Group
Becton Property Group Limited
Galileo Japan Trust
Commonwealth Property Office Fund
ING Office Fund
Astro Japan Property Trust
Dexus Property Group
Centro Retail Trust
Stockland Corporation
ING Industrial Fund
Mirvac Group
Macquarie CountryWide Trust
Macquarie Office Trust
GPT Group
Tishman Speyer Office Fund
Macquarie DDR Trust
Centro Properties Group
Goodman Limited
Valad Property Group
Units Stapled Entities/Companies
6ExplAnATIon of cRITERIA & RAnkIng
2009 BDO A-REIT Survey62
A brief explanation of each criteria used in the BDO Survey is provided below.
6.1 Financial criteria
Operating cash yield on weighted average net assets/security holders’ equity
Calculated by dividing operating cashflow by the total of weighted average shareholder’s/unitholders’ funds and the simple average of reserves and any undistributed income.
The financial year end of the entity has been used in all cases, except for 31 December entities where 30 June figures have been sourced from half year reports.
Distribution return on investment
Calculated by dividing the distribution per ordinary share/unit paid for the entity’s financial year by the average of the market price of ordinary shares/units in the entity. The average market price is calculated on a daily closing price basis with prices sourced from Bloomberg.
Tax advantaged distribution component
The total percentage of the distribution from each entity which is tax deferred.
Where this information was not disclosed in the annual report, BDO attempted to obtain the detail required from other sources.
Average market price v average NTA per security (premium/discount to NTA)
Calculated by subtracting the average NTA per security from the average market price per security, and dividing this by the average NTA per security.
We have ranked this criteria with entities trading at a premium to NTA as the highest ranking.
We have assigned a premium/(discount) to NTA of zero for those entities with negative NTA’s at year end.
Movement in the NTA per security
Calculated by assessing the percentage increase (or decrease) in NTA per security over the entities’ financial year by using the opening and closing figures for NTA per security.
Where entities were listed during the year, BDO has assessed the opening NTA as being equal to the opening issue price.
In all cases the financial year end of the entity has been used, except for 31 December year ends where we have used NTA per unit from the 30 June 2008 and 2009 half year reports.
ExplAnATIon of cRITERIA & RAnkIng
2009 BDO A-REIT Survey 63
6.2 Investment criteria
Total rate of return on investment
This measure, over both the one year and three years ended 30 June 2009, records both the income return (i.e. distributions) and capital appreciation (i.e. movement in market price).
Information sourced from UBS and Bloomberg has been used to compile this criteria.
Entities which have traded for less than three years have been awarded a result based on a weighting of one third its one year return and two thirds the median sector three year return for this measure, and subsequently ranked accordingly.
Volume of trading on ASX (liquidity)
This liquidity measure is expressed as a percentage, and is calculated by dividing the total volume of units traded in each entity for the year ended 30 June 2009 by the weighted average total units on issue.
This provides an indication of relative liquidity, irrespective of entity size.
2009 BDO A-REIT Survey64
6.3 Method of ranking
A total score of 500 (maximum) has been used, comprising 300 points for all financial criteria and 200 points for all Investment criteria. In determining the final rankings the scores on each component were aggregated (not the rankings) such that that relative performances within each criterion are maintained in determining the overall rankings.
Financial criteria
The tests used in the financial criteria and assigned weightings are as follows.
financial criteria weighted score 2009
Cash operating yield 90
Distribution return on investment 75
Tax advantaged distributions 35
Average market price vs. NTA per unit 50
Movement in NTA per security 50
PERFECT SCORE 300
In each of the above tests the scores were scaled so that the top performer in each test received the maximum available score for that criterion. Ranks were then assigned based on the scaled scores.
2009 BDO A-REIT Survey 65
Investment criteria
The tests used in the investment criteria and assigned weightings are as follows.
Investment criteria weighted score 2009
Total rate of return on investment (one year) 100
Total rate of return on investment (three year) 50
Volume of trading on ASX 50
PERFECT SCORE 200
The above tests have been ranked using a variable points system for each test, based on the number and importance of aspects taken into account. In each of the tests the scores were scaled so that the top performer in each test received the maximum available score for that criterion. Ranks were then assigned based on the scaled scores.
Median results
For an entity which could not be scored equitably in a particular criteria, due to its recent listing, the unique nature of an entity’s activities, or lack of available information for the relevant criteria, that entity was allocated a median result for the purpose of ranking. This ranking was then weighted and scored as usual. For all such instances ‘N/A’ appears in the result column for the individual criteria tables. For those entities in which a three year investment return is not available, we have estimated a three year return based on the following: one third weighting to the one year investment return, and two thirds weighting to the median three year return.
2009 BDO A-REIT Survey66
5.4 Newcomers
There are no new participants in the survey this year. There have been no IPOs in the sector for the twelve months ending 30 June 2009.
5.5 Removals and small capitalisation exclusions
Due to the significant number of entities that now have market capitalisations below the previous market capitalisation threshold ($50m) we have lowered the entry threshold to $15m for the 2009 Survey.
The following entities in the 2008 edition have been removed from the 2009 edition.
Entity name Reason for exclusion
Timbercorp Primary Infrastructure Results not released
Compass Hotel Group Results not released
Multiplex Prime Property Fund Market capitalisation below $15m at 30 June 2009
7bdo coRpoRATE fInAncE
2009 BDO A-REIT Survey70
BDO Corporate Finance has established itself as financial experts in the property sector and the general investment community.
The BDO Corporate Finance national team of 14 Directors and over 65 staff are the largest dedicated corporate finance team outside the Big 4. Recent achievements include:
• havingprovidedservicesonover$15billionofpropertytransactions;
• beingtheleadingaccountingadviserforIPOsin2007;and
• beingtheleadingproviderofIndependentExpert’sReportsforthelastthreeyears.
With our technical skills, independence and broad commercial experience we can provide an extensive range of services to the property sector that ensures our clients receive reports that assist key stakeholders in making decisions in relation to transactions.
Our service style sets us apart from our competitors, in that our service is delivered by a more experienced, senior professional team who not only specialise in providing high quality, timely advice but also offer individual solutions for our clients that exceed their expectations.
Through our extensive global network, we regularly work with our corporate finance specialists on cross border transactions. Our global network together with the distinctiveness of our local experience combine to help our achieve the desired results for our clients’ businesses.
BDO Corporate Finance has provided independent expert’s reports and independent accountant’s reports in the following property transactions.
Listed property experience
date client Transaction nature
Sep 2009 Macquarie DDR Trust Restructure
Sep 2009 Multiplex Prime Property Fund Corporate Advisory
Jun 2008 Pelorus Property Group Independent Expert Report
May 2008 Valad Property Group Valuation
Dec 2007 Valad Property Group Valuation
Oct 2007 MacarthurCook Industrial Property Fund Initial Public Offer
Sep 2007 WRF Securities Acquisition
Jan 2007 MacarthurCook Asian Real Estate Property Trust Initial Public Offer
bdo coRpoRATE fInAncE
2009 BDO A-REIT Survey 71
BDO Corporate Finance have been ranked number one in the Connect 4 Mergers and Acquisitions League Table for the provision of independent expert reports for the past three years.
date client Transaction nature
Jan 2007 SAI Capital Initial Public Offer
Jan 2007 Australian Unity Due Diligence
Jun 2006 Pelorus Property Investments Limited Capital Raising
Apr 2006 Lachlan Diversified Property Fund Restructure
Mar 2006 JF Meridian Management Limited Management Fee Restructure
Feb 2006 McLaughlins Financial Services Acquisition of Unlisted Trusts by MFS Diversified
Feb 2006 Telstra Stadium Valuation
Dec 2005 Austcorp TOWERS Trust Hybrid Security Offering
Oct 2005 MacarthurCook Property Securities Fund Rights Issue Rights Issue
Sep 2005 Pelorus Pipes – Bakehouse Fund Restructure
Aug 2005 MFS Diversified Trust Preferred Equity Raising
Jul 2005 Australand Property Group Further Stapling
Jul 2005 Australand Wholesale Property Trust #3, #4 Takeover
Jun 2005 Macquarie Bank/Medallist Joint Venture Valuation
Jun 2005 Over 50’s Group Due Diligence
Jun 2005 MacarthurCook Property Securities Fund Initial Public Offer
Apr 2005 Charter Hall Property Trust Stapling/Internalisation/Listing
Apr 2005 Macquarie Leisure Trust Group Management Fee Restructure
Nov 2004 McLaughlins Financial Services Limited Group Restructure
Oct 2004 GPT Management Ltd Takeover Offer
Sep 2004 FKP Limited Stapling/Restructure
Jun 2004 Macquarie Goodman Funds Management Limited Valuation – All FUM Rights
Jun 2004 Becton Property Group Initial Public Offer
May 2004 Australand Holdings Group Acquisition
Apr 2004 MFS Hotel Property Trust Restructure
Mar 2004 Australian Value Funds Management Acquisition
2009 BDO A-REIT Survey72
Unlisted property experience
date client Transaction nature
Oct 2009 AMICI Property Fund Independent Accountant’s Report
Sep 2009 Macquarie DDR Trust Restructure
Jun 2009 Align Funds Management Independent Accountant’s Report
Mar 2009 Eureka Funds Management Valuations
Aug 2008 Mirvac Investment Management Management Fee Review
Aug 2007 Becton Investment Management Limited Fund Independent Accountant’s Report
Jun 2007 Orchards Funds Management Due Diligence / Independent Accountant’s Report
Mar 2007 Austock Property Funds Management Acquisition of Ceramic Funds Management Group
Jan 2007 Key Capital Property Trust No 2 Independent Accountant’s Report
Dec 2006 WRF Southern River Synidacte Independent Accountant’s Report and Tax Advice
Jun 2006 Pelorus Storage Fund Capital Raising
Jun 2006 Lachlan Office Property Fund Capital Raising
Jun 2006 Key Capital Property Trust Independent Accountant’s Report
May 2006 Trilogy Funds Management Capital Raising
Apr 2006 Hyperion Property Syndicate Limited Capital Raising
Feb 2006 MFS Diversified Trust – Acquisition of 3 Trusts Acquisition
Jan 2006 WRF X-One Syndicate Independent Accountant’s Report and Tax Advice
Dec 2005 Toga Accommodation Fund Capital Raising
Oct 2005 Lachlan Office Property Fund Capital Raising
Sep 2005 Abacus Storage Funds Management Limited Capital Raising
Sep 2005 Macquarie Direct Property – Stapling of seven Unlisted Trusts
Stapling
Sep 2005 WRF Henley Brook Syndicate Independent Accountant’s Report and Tax Advice
Sep 2005 MacarthurCook Office Property Trust Independent Accountant’s Report
Aug 2005 Mariner Property Trust – Miller Street Trust Capital Raising
Aug 2005 Flowers Group Valuation
Jun 2005 Grant Samuel – Wholesale Funds Capital Raising
2009 BDO A-REIT Survey 73
date client Transaction nature
May 2005 WRF 9 to 5 Syndicate Independent Accountant’s Report and Tax Advice
Feb 2005 Becton Property Group Restructure
Jan 2005 Eureka Funds Management – Wholesale Funds Restructure
Dec 2004 Trilogy Capital Services Pty Limited Capital Raising
Nov 2004 Hyperion Property Syndicate Capital Raising
Nov 2004 Century Funds Management – Merger with Bankminister
Acquisition
Nov 2004 Mariner Property Group – Sydney Opera House Car Park
Capital Raising
Oct 2004 James Fielding Group – 4 Way Trust Merger
Oct 2004 Lachlan Office Property Fund Capital Raising
Oct 2004 Tankstream Capital – Tankstream Property Investment Fund
Capital Raising
Sep 2004 Investa Property Group – Collins Property Trust Capital Raising
Aug 2004 WRF VII Property Synducate Independent Accountant’s Report and Tax Advice
Feb 2004 Mariner Property Group – Mariner Property Trust #1 Capital Raising
Jan 2004 Domaine Property Group Capital Raising
The “Cornerstones of Our Success” are that we:
focus on what we do best•have expert skills•take global collaboration seriously•believe flexibility is important•
2009 BDO A-REIT Survey74
This Survey has been prepared by BDO Securities (NSW-VIC) Pty Limited AFS Licence 222438 (“BDO”).
Although BDO has taken due care to ensure the accuracy of this Survey, no warranties are given in relation to the statements and. information contained herein.
7.1 Sources of information
• AnnualReportsandHalf-yearReports.
• AustralianStockExchange
• S&PUBSPropertyAccumulatedIndexData–returnoninvestmentdata
• Bloomberg
• Otherpubliclyavailabledata
BDO disclaims all liability arising from any person acting on information and statements made herein.
The contents of this Survey should not be treated as advice to acquire, hold or dispose of securities and readers are advised to obtain professional advice before making any investment decision based on information contained in this Survey.
From time to time BDO partners and staff may hold relevant interests in securities issued by the Entities reported upon. BDO has not received any commission, brokerage or other undisclosed benefit as a result of any statements made.
Liability limited by a scheme approved under Professional Standards Legislation.
At all times, BDO is committed to protecting the privacy of our clients, contacts, and that of their staff. Any personal information held by BDO for financial or accounting purposes will only be used by BDO to support your relationship with us and to ensure you receive the most appropriate range of information and services. (BDO’s Privacy Statement is available upon request).
dISclAImER
2009 BDO A-REIT Survey 75
New South Wales
Sebastian Stevens - Director [email protected] Tel +61 2 9286 5555
South Australia
Gregory Wiese - Director [email protected] Tel +61 8 8223 1066
Western Australia
Sherif Andrawes - Chairman [email protected] Tel +61 8 9360 4200
Tasmania
Chris McTye - Director [email protected] Tel +61 3 6234 2499
Victoria
John Blight - Director [email protected] Tel +61 3 8320 2222
Queensland
Steven Sorbello - Partner [email protected] Tel +61 7 3237 5999
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BDO International is a world wide network of public accounting firms, called BDO Member Firms. Each BDO Member Firm is an independent legal entity. The network is coordinated by BDO Global Coordination B.V., incorporated in the Netherlands with its statutory seat in Eindhoven (trade register registration number 33205251) and with an office at Boulevard de la Woluwe 60, 1200 Brussels, Belgium, where the International Executive Office is located.BDO is the brand name for the BDO International network and for each of the BDO Member Firms.BDO in Australia is a national association of separate entities (each of which has appointed BDO (Australia) Limited ACN 050 110 275 to represent it in BDO International). Liability of each Australian entity is limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.This publication is issued exclusively for the general information of clients and staff of BDO in Australia.