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Page Investor Presentation2012 Half Year Results Briefing26 June 2012

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Page2012 Half Year Results Briefing Investor Presentation 26 July 2012

1H12

Results

Briefing

Agenda.

2

1H12 Result 3 Residential 17

Investment

Property 6Strategy

& Outlook 26

Commercial

& Industrial 11 Appendices 29

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1H12 Result First half operating highlights.

3

Group Operating profit and EPS up 5%

Distributions in line with guidance

Establishment of new $850m debt facility, extending the Group’s debt maturity profile and

reducing borrowing costs

Investment

Property

Strong portfolio metrics maintained: occupancy 98.7% and WALE 5.7 years

~52,000 sqm of leasing activity including good progress on 2013 expiries

Revaluation gain of $34m

Commercial

& Industrial

Secured commitments in excess of 100,000 sqm for new industrial space including a

41,000 sqm pre-leased facility for CEVA in Brisbane

Solid forward workload of 234,000 sqm

Residential Strong EBIT growth underpinned by contribution from key projects

Top 10 projects - FY12 sales targets 70% secured

Significant increase in contracts on hand to 1,316 with 59% expected to settle in 2H12

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1H12 Result Group financial results.

4

1H12 1H11

Investment Property $88m $82m

Commercial & Industrial $10m $13m

Residential $38m $26m

Corporate $(13)m $(12)m

Operating EBIT $123m $108m

Operating profit after tax $68m $65m

Investment property revaluation gain $34m $25m

Unrealised loss on interest rate derivatives $(12)m $(5)m

Statutory profit after tax $90m $85mFor

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1H12 Result Key operatingmetrics.

5

Operating EPS up 5% on 1H11

Gearing remains within target range

(25-35%)

Debt maturity profile extended to 3.7

years from 3.3 years

No corporate debt maturities before

September 2013

Improved average cost of debt

NTA per security of $3.46 remains

unchanged

− Impact of MTM of interest rate

derivatives

Key metrics 1H12 1H11

Operating EPS 11.8c 11.2c

DPS 10.5c 10.5c

% recurrent earnings 72% 76%

Jun 12 Dec 11

Gearing1 32.6% 33.0%

Weighted average debt maturity 3.7 yrs 3.3 yrs

Weighted average cost of debt2 7.8% 8.1%

NTA per security $3.46 $3.46

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

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

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Investment

PropertyFinancialperformance.

7

Results 1H12 1H11

EBIT $88m $82m

Revaluation gain1 $34m $25m

Metrics2 Jun 12 Dec 11

Portfolio value $2.3bn $2.2bn

Occupancy (by income) 98.7% 99.3%

Industrial occupancy 99.0% 100.0%

Office occupancy 100.0% 100.0%

Comparable rental growth 3.2% 3.3%

WALE (by income) 5.7 yrs 5.8 yrs

Industrial WALE 6.5 yrs 6.7 yrs

Office WALE 4.7 yrs 4.6 yrs

Average cap rate 8.30% 8.34%

1. Includes gains on internal developments of $10m (1H12) and $7m (1H11)

2. Metrics exclude properties under development, except for portfolio value

Strong EBIT growth of 7% driven by

− Comparable rental growth of 3.2%

− Full period of income from

developments completed in 2011

Strong portfolio metrics maintained

− Occupancy of 98.7%

− WALE of 5.7 years

Revaluation gain of $34m

Active management of lease expiry

profile

− One third of FY13 expiries

renewed in 1H12For

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2%

10%14% 12% 9%

53%

FY12 FY13 FY14 FY15 FY16 FY17+

~52,000 sqm of leasing activity in 1H12

− Tenant retention of 92% (by income)

− Average incentives of 10%

− WALE of 5 years

Near term expiry profile being

progressively de-risked

− 2% of income expiring in FY12

− 10% of income expiring in FY13

(down from 15% at Dec 11)

− 88% of portfolio income expiring post

FY13

Investment

PropertyLeasing activity and expiry profile.

8

1H12 office leasing Area (sqm) Expiry

TNT 7,650 2023

SPI Powernet 5,800 2015

Vanguard Investments 3,400 2020

Apple & AGN 500 2017

1H12 industrial leasing

Schweppes 25,700 2015

Danks 8,500 2018

Lease expiry profile1

1. By portfolio income, excludes properties under development and vacancy

88% expiring post FY13

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52%43%

5%

Industrial

Office

Other

42%

39%

16%

3%

NSW

VIC

QLD

SA & WA

Investment

PropertyPortfolio positioning.

9

Geographic

diversity1

Sector

diversity1

Balanced exposure to industrial and office

sectors

Majority of portfolio located in Sydney,

Melbourne and Brisbane

Average portfolio age less than 10 years

requiring low maintenance capex

Average 3.4% pa fixed rent increases over

95% of portfolio income

83% of income from government, ASX

listed and multinational companies

1. By portfolio value, excludes properties under development

42%

39%

16%

3%

NSW

VIC

QLD

SA & WA

52%43%

5%

Industrial

Office

Other

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Investment

PropertyFY12 outlook.

10

Portfolio remains well positioned

− Strong 1H12 EBIT contribution

− High occupancy, strong tenant

covenant and limited expiry risk

− Fixed rental increases across majority

of portfolio income

− Earnings contribution from major

development projects

− Coles expansion, QLD

3Q12 completion

− 357 Collins Street, VIC

4Q12 completion

Coles

Parkinson, QLD

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Commercial

& Industrial

12

Market conditions remain challenging

Lower EBIT in 1H12 but total

contribution in line with 1H11

Secured commitments in excess of

100,000 sqm for new industrial space

Forward workload up with completions

skewed to 2H12

Two facilities proposed for the logistics

JV (ALJV)3 with an end value of $89m

− 2H12: QLS & Ceva (21,700 sqm)

− 1H13: Ceva (41,000 sqm)

FinancialPerformance.

Results1 1H12 1H11

Revenue $65m $86m

EBIT $10m $13m

NTA uplift $10m $7m

Total contribution $20m $20m

Development activity

Built form - Third party (sqm) 28,400 66,600

Built form - Internal (sqm) 38,500 34,200

Land sales (sqm) 127,000 103,000

Metrics Jun 12 Dec 11

Capital employed2 $441m $469m

Forward workload (sqm) 234,000 210,000

1. Includes ALZ share of joint ventures and PDAs

2. Total assets less non interest bearing liabilities at period end, before FY11 impairments

3. Australand Logistics Joint Venture with GIC - ALZ interest 19.9%

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Commercial

& IndustrialForwardworkload.

13

INTERNAL DEVELOPMENT

GLA/NLA

Estimated

end value Timing

(sqm) ($m) % to go 2H12 1H13

NSW Building F, Rhodes Corporate Park 17,700 91 38%

QLD Coles, Parkinson (expansion) 11,800 34 10%

Flint St, Richlands 15,000 22 100%

VIC 357 Collins Street, Melbourne 32,350 200 10%

BIC & Spec, Keysborough 29,950 31 55%

DEVELOPED FOR EXTERNAL SALE

GLA/NLA

Estimated

end value Revenue Revenue timing

(sqm) ($m) % to go 2H12 1H13

NSW QLS & Ceva, Eastern Creek 21,700 29 82%

GME Kingray, Winston Hills 16,000 28 100%

QLD Honda & Spec, Northgate 6,700 18 76%

Ceva, Berrinba 41,000 60 100%

VIC Boundary Rd, Westpark 26,400 23 100%

PFG, Westpark 12,100 14 100%

Australian Ballet & Spec, Altona 28,200 22 90%

Fellowes, Melb Airport 7,400 7 40%

Border Express, Melb Airport 19,000 17 100%

SA Electrolux, Beverley 25,500 28 100%

Forward workload of 234,000 sqm

across 15 projects, end value ~$625m

5 developments to be held internally with

an estimated end value of ~$380m

− ~9% expected average yield on cost

− Forecast cost to complete of ~$130m

10 projects developed for external sale

with an estimated end value of ~$245m

− 8 facilities due for completion in 2H12

− 78% leased/owner occupied

A more detailed table outlining the forward workload is set out in the Appendices

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Commercial

& IndustrialIndustrial market outlook.

14

Industrial completions

* Only includes properties currently under construction

Source: Jones Lang LaSalle REIS 2Q12

Tenant enquiry is encouraging but conversion

remains challenging

Non-discretionary and large retailers most

active

Tightening vacancy levels

− Prime grade vacancy <3% (except

Brisbane)

− High level of tenant renewal activity ~80%

Limited supply

− Supply remains relatively constrained

− Limited speculative activity

Strong investment demand for prime assets

with quality tenant covenants 0

500

1,000

1,500

2,000

2,500

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12

sq

m (000's

)

Sydney Melbourne Brisbane

Prime industrial vacancy Jun 12 Dec 11

Melbourne 1.7% 1.7%

Sydney 2.1% 2.6%

Brisbane 7.0% 7.7%

Source: Savills

*

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Commercial

& IndustrialOffice developments.

15

2 office assets under development with a

combined end value of ~$290m

Expected yield on cost of ~8.75%

357 Collins St, Melbourne

70% office space committed

Quality tenants with a 9 year WALE

Expected completion 4Q12

Building F, Rhodes Corporate Park

Affordable proposition and local amenity

driving enquiry

~35% committed with a further 20% under

negotiation

Limited competing supply with expected

completion 1H13Building F

Rhodes Corporate Park, NSW

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Commercial

& IndustrialFY12 outlook.

16

QLS & Ceva

Eastern Creek, NSW

Strong industrial market share being maintained

− Leasing of selective speculative development

− Servicing owner occupier demand

− Strong presence in Melbourne market

− 100% zoned landbank

Strong third party capital and tenant

relationships

− $220m committed in GIC JV with a further

$230m headroom

− High level of repeat business

Solid forward workload of 234,000 sqm

(estimated end value of $625m)

FY12 outlook

− Operating conditions to remain challenging

− Stronger EBIT contribution in 2H12

− FY12 EBIT expected to be lower than FY11

− FY12 NTA uplift expected to be in line with FY11

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Residential Financial performance.

18


2. Includes 100% of joint ventures and PDAs

3. Total new sales and contracts on hand for the 6 months to 30 June

4. Total assets less non interest bearing liabilities at period end, before FY11 impairments

Strong EBIT growth due to increased

contribution from key projects with higher

average sales prices and margins

Lot sales down but contracts on hand up

significantly

− 15% increase in overall sales activity

− 1,316 contracts on hand, 59%

expected to settle in 2H12

Capital employed higher than expected

reflecting

− Buy out of JV partner at Carlton, VIC

− Lower sales rates, particularly in SEQ

Results1 1H12 1H11

Revenue $260m $233m

EBIT $38m $26m

Lots sold 489 605

Contracts on hand (lots) 824 605

Contracts on hand (value) $406m $303m

Activity2

Sales activity3 1,031 894

Gross lots sold 654 998

Gross contracts on hand (lots) 1,316 951

Metrics Jun 12 Dec 11

Capital employed4 $910m $908m

Lots under management2 21,300 21,800

Pipeline end value2 $8.0bn $8.1bn

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0

100

200

300

400

Ja

n 1

1

Fe

b 1

1

Ma

r 1

1

Ap

r 1

1

Ma

y 1

1

Ju

n 1

1

Ju

l 11

Au

g 1

1

Se

p 1

1

Oct 1

1

No

v 1

1

De

c 1

1

Ja

n 1

2

Fe

b 1

2

Ma

r 1

2

Ap

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2

Ma

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2

Ju

n 1

2

9%

16%

34%

41%

0

250

500

750

1,000

QLD WA VIC NSW

Contracts on hand Lots sold

Residential 1H12 operational highlights.

19

Sales and contracts

(by lots)1


Monthly sales activity

(by lots)1

6%

14%

33%

47%

QLD WA NSW VIC

Contracts on hand

Lots sold

Key projects contributing to 1H12 result

− Greenhills Beach, NSW

− Cockburn Central, WA

− Kangaroo Point, QLD

− Parkville, VIC

Good progress on planning approvals

− Point Cook, VIC & Ashlar, NSW

Delivery of medium density projects underway

− Linc, Wolli Creek (100% pre-sold)

− Stage 1, Clemton Park (100% pre-sold)

Stronger activity in the second quarter

− Sales activity in 2Q12 improved to ~200 lots per month

− VIC and NSW continue to provide largest share of

activity

Monthly average

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57%

29%

14%

PDA

JV

Wholly Owned

72%17%

11%

Land

Housing & medium densityHigh density 72%

17%

11%

Land

Housing & medium densityHigh density

Residential Market overviewVIC.

20


The overall market is in mild oversupply but this is not uniformly spread

Supply side has responded with builders reducing activity

Sentiment has softened with weaker employment outlook

Earnings resilience supported by diversity of pipeline - by location, product

type, ownership structure and price point

11 active projects - 513 gross contracts on hand

Geographic and product diversity

Pipeline by

ownership

(by lots)1

57%

29%

14%

PDA JV WO

72%17%

11%

Land


VIC54%

VIC

NSW

WA

QLD

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Residential Market overviewNSW.

21


Continued undersupply providing advantages to projects with secured approvals

State Government actively assisting new construction activity and fast tracking

projects – Ashlar and Clemton Park

Pipeline is well diversified across land and built form projects

572 gross contracts on hand securing revenues for FY12 to FY14 with future

releases planned including Wolli Creek, Clemton Park & The Ponds

Pipeline type

diversity

(by lots)1

Project Contracts on hand1 Value1

Wolli Creek (JV) 213 $124m

Clemton Park (JV) 112 $52m

The Ponds (PDA) 130 $48m

Lidcombe (JV) 41 $26m

Greenhills Beach 21 $18m

Shell Cove (JV) 31 $10m

NSW23%

VIC

NSW

WA

QLD

33%

36%

31%Land

Housing & medium density

High density

72%17%

11%

Land


72%17%

11%

Land


72%17%

11%

Land

Housing & medium densityHigh densityF

or p

erso

nal u

se o

nly



9%

VIC

NSW

QLD

WA

Residential Market overviewSE QLD.

22

Activity levels remain at historic lows

Interstate migration remains low but has stabilised

Affordability relative to other cities has improved significantly

Infill projects (Kangaroo Point & Hamilton) attracting enquiry and sales activity

8 active projects - 125 gross contracts on hand with an end value of $74m

Northshore

Hamilton, QLD

9%

VIC

NSW

WA

QLD

Geographic diversity

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Residential Market overviewWA.

23

Improving fundamentals as level of established housing on market is absorbed

Rental vacancies remain extremely low with rents escalating

Solid employment outlook driving interstate and international migration levels,

underpinning demand

7 active projects - 106 gross contracts on hand with an end value of $28m

Port Coogee, WA

Listings and rental vacancy

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Ju

n 1

0

Au

g 1

0

Oct 1

0

De

c 1

0

Fe

b 1

1

Ap

r 1

1

Ju

n 1

1

Au

g 1

1

Oct 1

1

De

c 1

1

Fe

b 1

2

Ap

r 1

2

Ju

n 1

2

Vac

ancy

List

ings

Number of house listing (LHS) Vacancy (RHS)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

0

5,000

10,000

15,000

20,000

Ju

n 1

0

Se

pt 1

0

De

c 1

0

Ma

r 1

1

Ju

n 1

1

Se

pt 1

1

De

c 1

1

Ma

r 1

2

Ju

n 1

2

Number of house listing (LHS) Vacancy (RHS)

Source: Real Estate Institute WA

WA14%

VIC

NSW

QLD

WA

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Residential Major projects.

24

Top 10 projects Type1 State

Previous FY12

target lot sales2

Revised FY12

target lot sales2

Revised targeted lot sales

secured at 30 Jun 12

Expected

average price

Burwood H/MD VIC 92 92 82% $670k

Carlton (JV) H/MD VIC 100 100 94% $490k

Cranbourne West Land VIC 102 102 48% $215k

Clyde North (JV & PDA) Land VIC 168 140 34% $235k

Cockburn Central H/MD WA 94 94 100% $430k

Greenhills Beach Land NSW 170 135 74% $820k

Greenvale Land VIC 108 108 47% $250k

Kangaroo Point HD QLD 48 48 79% $980k

Lidcombe (JV) H/MD NSW 108 108 62% $680k

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

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


Solid progress delivering sales at major projects

− Top 10 projects expected to contribute ~80% of targeted FY12 EBIT

− Targeted FY12 sales at these projects are 70% secured

Targeted sales on two projects (Clyde North and Greenhills Beach) have been moderated to reflect current

market conditions

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$349k$386k

$355k

$531k$493k

FY10 1H11 FY11 1H12 Average value of contracts on hand at 30 Jun 12

Residential FY12 outlook.

25

Average value per lot1

Targeting 15-20% increase in EBIT for FY12

− Volumes expected to be lower than FY11

− Strong level of contracts on hand with 59% expected to settle in 2H12

− Average value per lot expected to be significantly higher

− Continued contribution from projects with strong margins

Targeted FY12 sales of top 10 projects are 70% secured


Greenhills Beach, NSW

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Strategy

& OutlookProgress on strategic objectives.

27

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

have 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%

Group has made significant improvement in its return on development capital over the

last two years

Group continues to target a 12% ROACE - unlikely to be achieved in FY12

Capital

management

Prudent capital management

Gearing of 32.6% as at 30 June 2012 (within target range of 25-35%)

Development pipeline fully funded with no corporate debt maturities until

September 2013

Free cash flow coverage of distributions

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Strategy

& OutlookGroup outlook and guidance.

28

Outlook

Trading conditions expected to remain challenging for the remainder of 2012 however the Group

remains well positioned to deliver earnings growth

− Well leased investment portfolio

− Solid forward workload for C&I

− Strong level of residential contracts on hand

Group earnings and distributions guidance

FY12 operating earnings per security expected to grow 3-4%

Reaffirm FY12 distribution guidance of 21.5 cents per security

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Australand

Property

Group

30

RECURRENT INCOME

(60-70% of Group EBIT)

INVESTMENT PORTFOLIO

Commercial

& Industrial

$2.6bn1$2.3bn

ResidentialOffice

& Industrial

$8.0bn1

GROWTH

(30-40% of Group EBIT)

DEVELOPMENT PIPELINE

OPTIMUM MIX OF RECURRENT INCOME AND GROWTH

Business model.

1. Estimated pipeline end values

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1H12

$m

1H11

$m

Investment Property 88 82

Commercial & Industrial 10 13

Residential 38 26

Corporate (13) (12)

Operating EBIT 123 108

Net interest (42) (30)

Profit before tax 81 78

Tax 0 0

Non-controlling interest (ASSETS) (12) (13)

Operating profit after tax 68 65

31

Summary of profit and loss statement.

Financial

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Page2012 Half Year Results Briefing Investor Presentation 26 July 2012 32

1H12 operating segment.

Financial

Commercial &

Industrial

$m

Total

Developer

$m

Investment

Property

$m1H12

Residential

$m

Corporate

$m

Total

$m

Sales Revenue

Property development sales 207.1 54.8 261.9 - - 261.9

Rent from investment properties - - - 105.7 - 105.7

Interest received or receivable 1.1 0.1 1.2 0.5 0.8 2.5

Management fees from joint ventures 8.1 - 8.1 - - 8.1

Other income from joint ventures 4.2 - 4.2 - - 4.2

Sundry income 2.6 0.0 2.6 6.6 1.3 10.5

Revenue from continuing operations 223.1 54.9 278.0 112.8 2.1 392.9

Property development sales from joint ventures 36.5 10.3 46.7 - - 46.7

Revenue including sales from joint venture entities 259.5 65.2 324.7 112.8 2.1 439.6

Segment result before interest and equity accounted results 35.7 7.4 43.1 84.6 - 127.7

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

Share of net profits of associates and jv’s accounted for using the equity method 2.3 2.2 4.4 3.2 - 7.6

Unallocated corporate costs - - - - (12.6) (12.6)

Earnings before interest and tax 38.0 9.5 47.5 87.8 (12.6) 122.6

Capitalised interest in cost of goods sold and other interest (44.5)

Interest income 2.5

Other fees charged between developer and trust -

Operating profit before tax 80.6

Income tax (expense)/credit on operating activities -

Net profit attributable to ASSETS hybrid equity holders (non-controlling interest) (12.5)

Net operating profit after income tax 68.2

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1H12

$m

1H11

$m

Gross finance costs 59 53

Less: capitalised interest – developer (24) (21)

Less: capitalised interest – investment property (7) (6)

Add: unrealised loss on interest rate derivatives 12 5

Finance costs in profit and loss 40 32

Less: unrealised loss on interest rate derivatives (12) (5)

Add: capitalised interest expensed via COGS 16 5

Finance costs included in operating profit 44 31

Interest income 3 1

Net interest expense in operating profit 42 30

33

Interest reconciliation.

Financial

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Jun 12 $m Dec 11 $m

Assets

Cash

Receivables

Inventories

Investment properties

Investments held for sale

Equity accounted investments

Other assets

88

208

1,047

2,269

-

262

123

93

190

1,097

2,165

72

234

101

Total assets 3,997 3,953

Liabilities

Interest bearing liabilities

Other liabilities

1,385

349

1,382

306

Total liabilities 1,734 1,687

Net assets 2,263 2,266

ASSETS hybrid equity 269 269

Net tangible assets 1,994 1,997

34

Balance sheet.Financial

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Securities on issue No. of securities

As at 1 January 2012 576,846,597

Movement in securities -

As at 30 June 2012 576,846,597

Weighted average number of securities 576,846,597

35

Net tangible assets $m $ per security

As at 1 January 2012 1,997 3.46

Gains from property revaluations 34 0.06

Unrealised loss on interest rate derivatives (44) (0.07)

Retained operating earnings / other 7 0.01

As at 30 June 2012 1,994 3.46

NTA and securities on issue reconciliation.

Financial

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$125m

$504m

$371m

$134m

$29m

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

$350m

$125m

$354m

$200m

Financial Key metrics.

36

Jun 12 Dec 11

Gearing1 32.6% 33.0%

Look-through gearing2 32.8% 33.3%

Weighted average debt maturity 3.7 yrs 3.3 yrs

Undrawn facilities plus cash $448m $548m

Weighted average cost of debt3 7.8% 8.1%

% of debt fixed by hedges 88% 72%

Weighted average hedge maturity 3.5 yrs 4.0 yrs

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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Statutory

balance sheet

Jun 12 Adjustments

Adjusted

balance sheet

Jun 12

Cash 88 - 88

Other assets 3,909 (35) 3,874

Total tangible assets 3,997 (35) 3,962

Interest bearing liabilities 1,385 (32) 1,353

Gearing1 32.6%

37

Reported gearing.Financial


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ALZ share of assets and liabilities

in joint ventures and associates

Jun 12

$m

Dec 11

$m

Assets

Cash

Inventories

Investment properties

Other assets

12

341

116

51

24

315

98

37

Total assets 520 475

Liabilities

Interest bearing liabilities

Other liabilities

112

146

137

103

Total liabilities 258 241

Equity accounted investments 262 234

38

Financial Look-through joint venture balance sheet.

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Facility limit $m

Drawn amount $m Maturity date Security

Carlton project facility 25 15 Aug 2013 Secured

Tranche A - syndicated 100 100 Sep 2013 Unsecured

Tranche B - syndicated 350 350 Jul 2014 Unsecured

Tranche C - syndicated 200 50 Sep 2015 Unsecured

Tranche 2015 - syndicated 304 304 Jan 2015 Unsecured

Tranche 2016 - syndicated 371 371 Sep 2016 Unsecured

Tranche D - syndicated 200 0 May 2017 Unsecured

US private placement1 134 134 May 2021 Unsecured

US private placement1 29 29 May 2023 Unsecured

Total 1,713 1,353

Available facilities 360

Cash 88

Available liquidity 448

39

Liquidity and debt facilities.

Financial

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

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Measure Covenant 1H12

Interest cover ratio (cash basis) >2.0x 2.8x

EBIT / cash interest paid

Investment Property interest cover ratio >1.3x 1.8x

Net operating income of IP / cash interest paid

Covenant gearing (look-through) <55% 43.9%

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% 45.3%

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

Priority debt <7.5% 1.0%

Secured debt / total tangible assets

Tangible net worth >$1.7bn $2.2bn

Total tangible assets less total liabilities

Debt covenants. Financial

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Interest rate hedging profile.

Financial

4.40%

4.60%

4.80%

5.00%

5.20%

5.40%

5.60%

$0m

$200m

$400m

$600m

$800m

$1,000m

$1,200m

$1,400m

2012 2013 2014 2015 2016 2017 2018 2019 2020

Interest Rate Hedge Profile

Hedge amount (LHS)

Hedge rate at Jun 2012 (RHS)

Hedge rate at Dec 2011 (RHS)

4.40%

4.60%

4.80%

5.00%

5.20%

5.40%

5.60%

$0m

$200m

$400m

$600m

$800m

$1,000m

$1,200m

$1,400m

2012 2013 2014 2015 2016 2017 2018 2019 2020

Interest Rate Hedge Profile

Hedge amount (LHS)

Hedge rate at Jun 2012 (RHS)

Hedge rate at Dec 2011 (RHS)

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Cap rates Jun 12 Dec 11 Jun 11

Industrial 8.71% 8.72% 8.74%

Office 7.82% 7.92% 7.87%

Portfolio 8.30% 8.34% 8.33%

Tenant profile2

ASX listed companies 34%

Multinational companies 42%

Government 7%

Other 17%

Total 100%

51%44%

5%

Industrial

Office

Other

Sector

diversity1

Rent review

structure2

89%

6%

5%

Fixed

> of fixed or CPI

Other

Portfolio details.Investment

Property

89%

6%

5%

Fixed

> of fixed or CPI

Other

52%43%

5%

Industrial

Office

Other

1. By portfolio value, excludes properties under development

2. By portfolio income, excludes properties under development and vacancy

42

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52%

1%

47%

NSW

QLD

VIC

35%

30%

30%

5%

VIC

NSW

QLD

WA & SA

Industrial - key metrics Jun 12

Portfolio value $1.1 bn

Number of assets 50

GLA 891,423 sqm

Occupancy (by income) 99.0%

Comparable rental growth 2.9%

Cap rate 8.71%

WALE (by income) 6.5 years

Portfolio age 6.7 years

Office - key metrics Jun 12

Portfolio value $1.0 bn

Number of assets 15

NLA 228,730 sqm

Occupancy (by income) 100.0%

Comparable rental growth 3.5%

Cap rate 7.82%

WALE (by income) 4.7 years

Portfolio age 10.1 years

Office

geographic

diversity

Industrial

geographic

diversity

43

Portfolio diversification.

Investment

Property

35%

30%

30%

5%

VIC

NSW

QLD

WA & SA

52%

1%

47%NSW

QLD

VIC

Note: Metrics exclude properties under development, except for portfolio value and number of assets

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88%

10%

2%

Fixed

> of fixed or CPI

Other

<1%2%

19%16%

8%

55%


2%

20%

8% 9% 12%

49%


95%

5%

Fixed

Other

Industrial

rent reviews

89%

6%

5%

Fixed

> of fixed or CPI

Other

Office rent

reviews

Industrial lease expiry Office lease expiry

44

95%

5%

Fixed

Other

Lease expiry profile and rent review structure.

Investment

Property

Note: By portfolio income, excludes properties under development and vacancy

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Portfolio Industrial Office

Wesfarmers - Coles (12%) Wesfarmers - Coles (17%) C’wealth Govt of Australia (11%)

C’wealth Govt of Australia (4%) LG Electronics Australia (5%) Nestle Australia (11%)

Nestle 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%) DHL Global Forwarding (3%) Qantas Airways (6%)

LG Electronics Australia (2%) Inchcape Motors Australia (3%) TNT Australia (5%)

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

Toll Holdings (2%) Retail Adventures (3%) National Australia Bank (4%)

H.J. Heinz Co. Australia (2%) Consolidated Paper (2%) Publishing and Broadcasting (3%)

45

Top 10 tenants by income.

Investment

Property

Note: By portfolio income, excludes properties under development and vacancy

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East/South East

22%

West26%

North12%

QLD19%

NSW14%

East/South EastWest

North

60%

19%

14%

7%

VIC

QLD

NSW

SA

70%30%

Industrial

Office

46

Pipeline positioning

($2.6bn estimated end value)

60%

19%

14%

7%

VIC

QLD

NSW

SA

Industrial landbank

positioning (360ha)

Pipeline positioning.

67%33%

Industrial

Office

Commercial

& Industrial

Note: Includes 100% of joint ventures and PDAs

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Type Ownership State

Estimated

end value

($m)

% revenue

to go

GLA/NLA

(sqm)

Forward

workload

(sqm)

Estimated

completion

% leased

(by area)

% sold

(by area) % built

Building F, Rhodes Corporate Park Internal 100% NSW 91 38% 17,700 6,726 1H13 37% na 62%

Coles, Parkinson (expansion) Internal 100% QLD 34 10% 11,800 1,180 2H12 100% na 90%

Flint St, Richlands Internal 100% QLD 22 100% 15,000 15,000 2H12 0% na 0%

357 Collins Street, Melbourne Internal 100% VIC 200 10% 32,350 3,235 2H12 70% na 90%

BIC & Spec, Keysborough Internal 100% VIC 31 55% 29,950 16,473 2H12 41% na 45%

Sub total - Internal development 378 106,800 42,614 43%

QLS & Ceva, Eastern Creek1 Third party 50% NSW 29 82% 21,700 17,794 2H12 100% 0% 100%

GME Kingray, Winston Hills Owner occupier 100% NSW 28 100% 16,000 16,000 2H12 100% 100% 0%

Honda & Spec, Northgate Third party 100% QLD 18 76% 6,700 5,092 1H13 31% 26% 100%

Ceva, Berrinba1 Third party 100% QLD 60 100% 41,000 41,000 1H13 100% 0% 0%

Boundary Rd, Westpark Third party 100% VIC 23 100% 26,400 26,400 2H12 0% 0% 0%

PFG, Westpark Owner occupier 100% VIC 14 100% 12,100 12,100 2H12 100% 100% 0%

Australian Ballet & Spec, AltonaOwner occupier /

Third party100% VIC 22 90% 28,200 25,380 2H12 50% 50% 10%

Fellowes, Melb Airport Third party 50% VIC 7 40% 7,400 2,960 2H12 100% 100% 60%

Border Express, Melb Airport Third party 50% VIC 17 100% 19,000 19,000 2H12 100% 100% 0%

Electrolux, Beverley Third party 100% SA 28 100% 25,500 25,500 2H12 100% 0% 0%

Sub total – For external sale 246 204,000 191,226 78% 34%

Total 623 310,800 233,840

1. Proposed for the Australand Logistics Joint Venture with GIC – ALZ interest 19.9%

Forward workload.Commercial

& Industrial

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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

48

Pipeline overview.Commercial

& Industrial

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54%

22%

14%

9%

VIC

NSW

WA

QLD

49

67%31%

2%

Affordable

Medium range

Premium range

Pipeline by

product type

72%17%

11%

Land


72%17%

11%

Land


72%17%

11%

Land


Pipeline by

geography

Pipeline by

price point

Pipeline positioning.Residential

Note: By number of lots, includes 100% of joint ventures and PDAs

72%26%

2%

Affordable

Medium range

Premium range

54%

23%

14%

9%

VIC

NSW

WA

QLD

72%20%

8%

Land


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Land Housing & medium density High density

Projects 23 Projects 14 Projects 6

Lots 15,331 Lots 4,232 Lots 1,699

End value $4.5bn End value $2.4bn End value $1.1bn

Average age1 6.6 yrs Average age1 4.0 yrs Average age1 9.8 yrs

Development life1 14.0 yrs Development life1 5.0 yrs Development life1 5.2 yrs

The Ponds, NSW Parkville, VIC Kangaroo Point, QLD

50

Pipeline breakdown.Residential

Note: Includes 100% of joint ventures and PDAs

1. Weighted average by lots remaining

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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 2019

Elderslie Land 143 35 108 24 21 100% 2008 2014

Greenhills Beach Land 234 79 155 128 21 100% 2012 2014

Lidcombe H/MD 229 118 111 64 3 100% 2007 2014

Wolli Creek HD 707 - 707 402 - 100% 2015 2018

QLD Hamilton H/MD 447 - 447 334 100 100% 2012 2017

Hope Island Land 633 36 597 107 5 100% 2010 2017

Ivadale Lakes Land 652 467 185 46 4 100% 2003 2017

Kangaroo Point HD 175 33 142 124 6 100% 2012 2016

Park Ridge Land 319 - 319 69 - 100% 2014 2019

Springfield Land 276 92 184 44 9 100% 2010 2015

VIC Burwood H/MD 241 114 127 76 63 100% 2011 2013

Carlton H/MD 675 88 587 344 203 80% 2011 2017

Cranbourne West Land 681 308 373 79 10 100% 2010 2014

Greenvale Land 678 132 546 157 20 100% 2011 2016

WA Cockburn Central H/MD 486 237 249 116 16 100% 2008 2016

Port Coogee Land 378 101 277 343 2 100% 2007 2021

Pipeline detail.Major wholly owned projects

Residential

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

5,917 lots with an estimated on-completion value of $2.9bn

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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 678 - 678 393 112 50% 2013 2017

Lidcombe H/MD 459 295 164 110 41 50% 2007 2013

Shell Cove Land 2,600 1,549 1,051 436 31 PDA 1997 2025

The Ponds Land 1,324 1,061 263 115 130 PDA 2007 2013

Wolli Creek HD 788 - 788 560 213 50% 2014 2017

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

Clyde North Land 2,593 119 2,474 741 39 50% & PDA 2011 2027

Croydon Land 572 284 288 96 21 50% 2009 2014

Parkville H/MD 858 260 598 296 114 50% 2006 2018

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

Sunbury Land 390 - 390 89 - PDA 2014 2016

Sunshine H/MD 658 382 276 111 25 50% 2009 2016

Wallan Land 1,697 379 1,318 233 17 50% 2009 2024

Westmeadows H/MD 221 - 221 91 - PDA 2013 2017

WA Baldivis Land 837 - 837 181 - 50% 2014 2020

Byford Land 400 80 320 58 53 50% 2010 2015

Port Coogee Land 417 285 132 133 5 50% 2006 2016

Yanchep Land 1,303 218 1,085 269 21 50% 2009 2022

Pipeline detail.Major JVs and PDAs1

Residential

52


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

15,345 lots with an estimated on-completion value of $5.1bn

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Lots remaining End value ($m)

No. projects Land

Housing

& medium

density

High

density Total Land

Housing

& medium

density

High

density Total

NSW 11 1,577 1,721 1,495 4,793 703 1,037 961 2,701

VIC 15 9,818 1,809 - 11,627 2,554 918 - 3,472

QLD 9 1,285 452 156 1,893 266 337 146 749

WA 8 2,651 250 48 2,949 984 117 26 1,127

Total 43 15,331 4,232 1,699 21,262 4,507 2,409 1,133 8,049

Wholly

owned23 2,772 2,295 850 5,917 1,004 1,408 526 2,938

JV / PDAs 20 12,559 1,937 849 15,345 3,503 1,001 607 5,111

Total 43 15,331 4,232 1,699 21,262 4,507 2,409 1,133 8,049

53

Pipeline overviewLots under management1

Residential


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Pipeline overview.ALZ share1

Residential

Lots remaining End value ($m)

No. projects Land

Housing

& medium

density

High

density Total Land

Housing

& medium

density

High

density Total

NSW 11 841 1,300 1,101 3,242 393 786 681 1,860

VIC 15 5,470 1,144 - 6,614 1,410 600 - 2,010

QLD 9 1,285 452 150 1,887 266 337 136 739

WA 8 1,464 250 24 1,738 663 117 13 793

Total 43 9,060 3,146 1,275 13,481 2,732 1,840 830 5,402

Wholly

owned23 2,772 2,178 850 5,800 1,004 1,340 526 2,870

JV / PDAs 20 6,288 968 425 7,681 1,728 500 304 2,532

Total 43 9,060 3,146 1,275 13,481 2,732 1,840 830 5,402


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34%

28%

26%

12%WA

NSW

VIC

QLD

55

72%17%

11%

Land


72%17%

11%

Land


72%17%

11%

Land


Lot sales by

geography

Lot sales by

segment

Land 1H12

Lots sold 275

Revenue $144m

Average sale price2 $589k

Housing & medium density 1H12

Lots sold 175

Revenue $87m

Average sale price2 $497k

High density 1H12

Lots sold 39

Revenue $29m

Average sale price $744k

HY12 metrics.ALZ share1

Residential


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

structures as sales from PDAs are not included in reported revenue

56%36%

8%Land


34%

28%

26%

12%WA

NSW

VIC

QLD

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Lots sold NSW VIC WA QLD Total

Land 115 92 45 23 275

Housing & medium density 21 33 118 3 175

High density 1 - 5 33 39

Total 137 125 168 59 489

Wholly owned 84 95 131 59 369

JV / PDAs 53 30 37 - 120

Total 137 125 168 59 489

Revenue ($m) NSW VIC WA QLD Total

Land2 94 22 23 5 144

Housing & medium density2 17 22 46 2 87

High density 1 - 3 25 29

Total 112 44 72 32 260

Wholly owned 96 28 54 32 210

JV / PDAs 16 16 18 - 50

Total 112 44 72 32 260

HY12 metrics.ALZ share1

Residential


2. Excludes revenue from projects under PDA structures

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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.1H12

Results

Briefing

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for personal use only - · pdf filefor personal use only. ... ~52,000 sqm of leasing activity...

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