For personal use only

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2 1H12 Results Briefing Agenda. 1H12 Result 3 Residential 17 Investment Property 6 Strategy & Outlook 26 Commercial & Industrial 11 Appendices July

3 1H12 Result First half operating highlights. 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 Commercial & Industrial 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 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 26 July

4 1H12 Result Group financial results. 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 $85m 26 July

5 1H12 Result Key operating metrics. 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 Gearing % 33.0% Weighted average debt maturity 3.7 yrs 3.3 yrs Weighted average cost of debt 2 7.8% 8.1% NTA per security $3.46 $ Interest bearing debt / total tangible assets (cash adjusted), based on the drawn amount of debt excluding fair value adjustments and associated derivative financial instruments June All 2012 in cost of debt excluding 2012 establishment Half Year Results fees andbriefing net of interest income 26 July

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7 Investment Property Financial performance. 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 1H12 Results 1H12 1H11 EBIT $88m $82m Revaluation gain 1 $34m $25m Metrics 2 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) June Metrics 2012exclude properties 2012 under Half development, Year Results except Briefing for portfolio value 26 July

8 Investment Property Leasing activity and expiry profile. ~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) 1H12 office leasing Area (sqm) Expiry TNT 7, SPI Powernet 5, Vanguard Investments 3, Apple & AGN H12 industrial leasing Schweppes 25, Danks 8, Lease expiry profile 1 88% of portfolio income expiring post FY13 88% expiring post FY13 53% 2% 10% 14% 12% 9% June By 2012 portfolio income, excludes 2012 Half properties Year under Results development Briefing and vacancy 26 July 2012 FY12 FY13 FY14 FY15 FY16 FY17+ 8

9 Investment Property Portfolio positioning. Balanced exposure to industrial and office sectors Sector diversity 1 5% 5% Majority of portfolio located in Sydney, Melbourne and Brisbane Average portfolio age less than 10 years requiring low maintenance capex Industrial Industrial Office Office Other Other 43% 43% 52% 52% Average 3.4% pa fixed rent increases over 95% of portfolio income 83% of income from government, ASX listed and multinational companies Geographic diversity 1 NSW NSW VIC VIC QLD QLD SA & WA SA & WA 16% 16% 39% 3% 39% 3% 42% 42% June By 2012 portfolio value, excludes 2012 properties Half Year under Results development Briefing 26 July

10 Investment Property FY12 outlook. 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 26 July

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12 Commercial & Industrial Financial Performance. 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) Results 1 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 Metrics Jun 12 Dec 11 Capital employed 2 $441m $469m Forward workload (sqm) 234, , Includes ALZ share of joint ventures and PDAs 2. Total assets less non interest bearing liabilities at period end, before FY11 impairments June Australand 2012 Logistics Joint 2012 Venture Half Year with GIC Results - ALZ Briefing interest 19.9% 26 July

13 Commercial & Industrial Forward workload. 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 ~$245m 8 facilities due for completion in 2H12 78% leased/owner occupied INTERNAL DEVELOPMENT GLA/NLA Estimated end value Timing (sqm) ($m) % to go 2H12 1H13 NSW Building F, Rhodes Corporate Park 17, % QLD Coles, Parkinson (expansion) 11, % Flint St, Richlands 15, % VIC 357 Collins Street, Melbourne 32, % BIC & Spec, Keysborough 29, % DEVELOPED FOR EXTERNAL SALE GLA/NLA Estimated end value Revenue Revenue timing (sqm) ($m) % to go 2H12 1H13 NSW QLS & Ceva, Eastern Creek 21, % GME Kingray, Winston Hills 16, % QLD Honda & Spec, Northgate 6, % Ceva, Berrinba 41, % VIC Boundary Rd, Westpark 26, % PFG, Westpark 12, % Australian Ballet & Spec, Altona 28, % Fellowes, Melb Airport 7, % Border Express, Melb Airport 19, % SA Electrolux, Beverley 25, % 26 July 2012 A more detailed table outlining the forward workload is set out in the Appendices 13

14 sqm (000's) Commercial & Industrial Industrial market outlook. 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 2,500 2,000 1,500 1,000 Strong investment demand for prime assets 500 with quality tenant covenants 0 Prime industrial vacancy Jun 12 Dec 11 Melbourne 1.7% 1.7% Sydney 2.1% 2.6% Brisbane 7.0% 7.7% Industrial completions Source: Savills '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12* 26 July 2012 Sydney Melbourne Brisbane * Only includes properties currently under construction Source: Jones Lang LaSalle REIS 2Q12 14

15 Commercial & Industrial Office developments. 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 1H13 Building F Rhodes Corporate Park, NSW 26 July

16 Commercial & Industrial FY12 outlook. 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 26 July 2012 QLS & Ceva Eastern Creek, NSW 16

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18 Residential Financial performance. 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 1. Includes ALZ share of joint ventures and PDAs 2. Includes 100% of joint ventures and PDAs 3. Total new sales and contracts on hand for the 6 months to 30 June June Total 2012 assets less non interest 2012 Half bearing Year liabilities Results at period Briefing end, before FY11 impairments 26 July 2012 Results 1 1H12 1H11 Revenue $260m $233m EBIT $38m $26m Lots sold Contracts on hand (lots) Contracts on hand (value) $406m $303m Activity 2 Sales activity 3 1, Gross lots sold Gross contracts on hand (lots) 1, Metrics Jun 12 Dec 11 Capital employed 4 $910m $908m Lots under management 2 21,300 21,800 Pipeline end value 2 $8.0bn $8.1bn 18

19 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 For personal use only Residential 1H12 operational highlights. 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 1, % Sales and contracts (by lots) 1 16% 33% 34% 47% 41% 14% 6% QLD WA VIC NSW Contracts on hand Lots sold 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 Contracts on hand QLD WA NSW VIC Monthly sales activity (by lots) 1 Monthly average Lots sold Sales activity in 2Q12 improved to ~200 lots per month VIC and NSW continue to provide largest share of activity June Includes % of joint 2012 ventures Half and Year PDAs Results Briefing 26 July

20 Residential Market overview VIC. The overall market is in mild oversupply but this is not uniformly spread VIC 54% 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 gross contracts on hand Pipeline by ownership (by lots) 1 14% 14% 57% Geographic and product diversity PDA PDA JV JV WO Wholly Owned 29% 29% June Includes % of joint 2012 ventures Half and Year PDAs Results Briefing 57% 26 July 2012 Land 11% Land 11% 1 Housing & 17% Land Housing & medium density medium density High density High density 17% 20 Housing & 72%

21 Residential Market overview NSW. Continued undersupply providing advantages to projects with secured approvals NSW 23% 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 Project Contracts on diversity (by lots) Land 1 31% 11% 11% 33% Land Land Housing & medium density 17% Housing 17% Housing & 72% High 72% medium medium density density 36% High High density density 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 June Includes % of joint 2012 ventures Half and Year PDAs Results Briefing 26 July

22 VIC NSW Residential 9% Market overview SE QLD. WA QLD 9% 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 gross contracts on hand with an end value of $74m Geographic diversity 26 July 2012 Northshore Hamilton, QLD 22

23 Jun 10 Sept 10 Dec 10 Mar 11 Jun 11 Sept 11 Dec 11 Mar 12 Jun 12 For personal use only Residential Market overview WA. WA 14% 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 gross contracts on hand with an end value of $28m Listings and rental vacancy Number of house listing (LHS) Vacancy (RHS) 20,000 15,000 10,000 5, % 4.0% 3.0% 2.0% 1.0% 0.0% Number of house listing (LHS) Vacancy (RHS) Source: Real Estate Institute WA July 2012 Port Coogee, WA 23

24 Residential Major projects. 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 Top 10 projects Type 1 State Previous FY12 target lot sales 2 Revised FY12 target lot sales 2 Revised targeted lot sales secured at 30 Jun 12 Expected average price Burwood H/MD VIC % $670k Carlton (JV) H/MD VIC % $490k Cranbourne West Land VIC % $215k Clyde North (JV & PDA) Land VIC % $235k Cockburn Central H/MD WA % $430k Greenhills Beach Land NSW % $820k Greenvale Land VIC % $250k Kangaroo Point HD QLD % $980k Lidcombe (JV) H/MD NSW % $680k Parkville (JV) H/MD VIC % $480k 1. H/MD - Housing / medium density, HD - High density June Includes % of joint ventures 2012 Half and Year PDAs Results Briefing 26 July

25 Residential FY12 outlook. 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 Average value per lot 1 Greenhills Beach, NSW $531k $493k $349k $386k $355k FY10 1H11 FY11 1H12 Average value of contracts on hand at 30 Jun June Includes 2012 ALZ share of joint 2012 ventures Half Year and Results PDAs Briefing 26 July

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27 Strategy & Outlook Progress on strategic objectives. Key sectors Recurring earnings Development returns Capital management Maintain focus on the core sectors of residential, industrial and office where we have competitive advantages Target 60-70% of Group EBIT from recurrent earnings Group continues to perform in line with target range 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 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 26 July

28 Strategy & Outlook Group outlook and guidance. 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 26 July

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30 Australand Property Group Business model. INVESTMENT PORTFOLIO RECURRENT INCOME (60-70% of Group EBIT) DEVELOPMENT PIPELINE GROWTH (30-40% of Group EBIT) Office & Industrial $2.3bn Commercial & Industrial $2.6bn 1 OPTIMUM MIX OF RECURRENT INCOME AND GROWTH Residential $8.0bn June Estimated 2012 pipeline end values 26 July

31 Financial Summary of profit and loss statement. 1H12 $m 1H11 $m Investment Property Commercial & Industrial Residential Corporate (13) (12) Operating EBIT Net interest (42) (30) Profit before tax Tax 0 0 Non-controlling interest (ASSETS) (12) (13) Operating profit after tax July

32 Financial 1H12 operating segment. 1H12 Sales Revenue Residential $m Commercial & Industrial $m Total Developer $m Investment Property $m Corporate $m Property development sales Rent from investment properties Interest received or receivable Management fees from joint ventures Other income from joint ventures Sundry income Revenue from continuing operations Property development sales from joint ventures Revenue including sales from joint venture entities Segment result before interest and equity accounted results Development profit through valuation of properties transferred to APT Share of net profits of associates and jv s accounted for using the equity method Unallocated corporate costs (12.6) (12.6) Earnings before interest and tax (12.6) Capitalised interest in cost of goods sold and other interest 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 Total $m (44.5) July

33 Financial Interest reconciliation. 1H12 $m 1H11 $m Gross finance costs 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 Less: unrealised loss on interest rate derivatives (12) (5) Add: capitalised interest expensed via COGS 16 5 Finance costs included in operating profit Interest income 3 1 Net interest expense in operating profit July

34 Financial Balance sheet. Jun 12 $m Dec 11 $m Assets Cash Receivables Inventories Investment properties Investments held for sale Equity accounted investments Other assets ,047 2, ,097 2, Total assets 3,997 3,953 Liabilities Interest bearing liabilities Other liabilities 1, , Total liabilities 1,734 1,687 Net assets 2,263 2,266 ASSETS hybrid equity Net tangible assets 1,994 1, July

35 Financial NTA and securities on issue reconciliation. Net tangible assets $m $ per security As at 1 January , Gains from property revaluations Unrealised loss on interest rate derivatives (44) (0.07) Retained operating earnings / other As at 30 June , Securities on issue No. of securities As at 1 January ,846,597 Movement in securities - As at 30 June ,846,597 Weighted average number of securities 576,846, July

36 Financial Key metrics. Jun 12 Dec 11 Gearing % 33.0% Look-through gearing % 33.3% Weighted average debt maturity 3.7 yrs 3.3 yrs Undrawn facilities plus cash $448m $548m Weighted average cost of debt 3 7.8% 8.1% % of debt fixed by hedges 88% 72% Weighted average hedge maturity 3.5 yrs 4.0 yrs Debt maturity profile $650m $504m $125m $125m $350m $354m $371m $200m $300m $437m $385m $325m $134m $29m Undrawn Drawn 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. 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 June All 2012 in cost of debt excluding 2012 establishment Half Year Results fees andbriefing net of interest income 26 July

37 Financial Reported gearing. Statutory balance sheet Jun 12 Adjustments Adjusted balance sheet Jun 12 Cash Other assets 3,909 (35) 3,874 Total tangible assets 3,997 (35) 3,962 Interest bearing liabilities 1,385 (32) 1,353 Gearing % June Interest 2012 bearing debt / total 2012 tangible Half Year assets Results (cash adjusted), Briefingbased on the drawn amount of debt excluding fair value adjustments and associated derivative financial instruments 26 July

38 Financial Look-through joint venture balance sheet. ALZ share of assets and liabilities in joint ventures and associates Assets Cash Inventories Investment properties Other assets Jun 12 $m Dec 11 $m Total assets Liabilities Interest bearing liabilities Other liabilities Total liabilities Equity accounted investments July

39 Financial Liquidity and debt facilities. Facility limit $m Drawn amount $m Maturity date Security Carlton project facility Aug 2013 Secured Tranche A - syndicated Sep 2013 Unsecured Tranche B - syndicated Jul 2014 Unsecured Tranche C - syndicated Sep 2015 Unsecured Tranche syndicated Jan 2015 Unsecured Tranche syndicated Sep 2016 Unsecured Tranche D - syndicated May 2017 Unsecured US private placement May 2021 Unsecured US private placement May 2023 Unsecured Total 1,713 1,353 Available facilities 360 Cash 88 Available liquidity June US 2012 Private placement at 2012 initial Half issuance Year amount Results (excludes Briefingfair value adjustments) 26 July

40 Financial Debt covenants. 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 26 July

41 Financial Interest rate hedging Interest Rate Hedge profile. Profile $1,400m 5.60% $1,200m 5.40% $1,000m $800m $600m $400m 5.60% 5.20% 5.00% 4.80% $200m 5.40% 4.60% $0m % % 5.00% Hedge amount (LHS) Hedge rate at Jun 2012 (RHS) Hedge rate at Dec 2011 (RHS) 4.80% 26 July

42 Investment Property Portfolio details. 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% Sector diversity 1 Industrial Industrial Office Office Other Other 44% 5% 5% 51% 43% 52% Tenant profile 2 ASX listed companies 34% Multinational companies 42% Government 7% Other 17% Total 100% Rent review structure 2 Fixed Fixed > of fixed or CPI > of fixed or CPI Other Other 5% 5% 6% 6% 89% 89% 1. By portfolio value, excludes properties under development June By 2012 portfolio income, excludes 2012 Half properties Year under Results development Briefing and vacancy 26 July

43 Investment Property Portfolio diversification. Industrial geographic diversity VIC VIC NSW NSW QLD QLD WA & SA WA & SA 30% 30% 5% 5% 30% 30% 35% 35% 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) Portfolio age 6.5 years 6.7 years 26 Note: June Metrics 2012exclude properties 2012 under Half development, Year Results except Briefing for portfolio value and number of assets 26 July 2012 Office geographic diversity NSW NSW QLD QLD VIC VIC 47% 47% 52% 52% 1% 1% 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) Portfolio age 4.7 years 10.1 years 43

44 Investment Property Lease expiry profile and rent review structure. Industrial lease expiry Office lease expiry 55% 49% 19% 16% 8% 2% <1% FY12 FY13 FY14 FY15 FY16 FY17+ 20% 8% 9% 2% 5% 12% FY12 FY13 FY14 FY15 FY16 FY17+ Industrial rent reviews Fixed Fixed > of fixed or CPI > of fixed or CPI Other Other 5% 2% 6% 10% 89% 88% Office rent reviews Fixed Other Fixed 5% 95% 95% Other 26 Note: June By 2012 portfolio income, excludes 2012 Half properties Year Results under development Briefing and vacancy 26 July

45 Investment Property Top 10 tenants by income. 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%) 26 Note: June By 2012 portfolio income, excludes 2012 Half properties Year Results under development Briefing and vacancy 26 July

46 Commercial & Industrial Pipeline positioning. Pipeline positioning ($2.6bn estimated end value) Industrial landbank positioning (360ha) 33% 67% 30% VIC QLD NSW SA 70% 14% 19% 7% East/ South 60% East West North QLD 19% 7% NSW 14% North 12% East/ South East 22% West 26% Industrial VIC 14% Office QLD NSW 19% 60% SA 26 Note: June Includes % of joint 2012 ventures Half and Year PDAs Results Briefing 26 July

47 Commercial & Industrial Forward workload. 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 % 15,000 15,000 2H12 0% na 0% 357 Collins Street, Melbourne Internal 100% VIC % 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 ,800 42,614 43% QLS & Ceva, Eastern Creek 1 Third party 50% NSW 29 82% 21,700 17,794 2H12 100% 0% 100% GME Kingray, Winston Hills Owner occupier 100% NSW % 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, Berrinba 1 Third party 100% QLD % 41,000 41,000 1H13 100% 0% 0% Boundary Rd, Westpark Third party 100% VIC % 26,400 26,400 2H12 0% 0% 0% PFG, Westpark Owner occupier 100% VIC % 12,100 12,100 2H12 100% 100% 0% Australian Ballet & Spec, Altona Owner occupier / Third party 100% 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 % 19,000 19,000 2H12 100% 100% 0% Electrolux, Beverley Third party 100% SA % 25,500 25,500 2H12 100% 0% 0% Sub total For external sale , ,226 78% 34% Total , , Proposed for the Australand Investor Logistics Presentation Joint Venture with GIC ALZ interest 19.9% 26 July

48 Commercial & Industrial Pipeline overview. NSW QLD VIC SA Landbank Gillman Botany Eastern Creek Macquarie Park Rhodes Winston Hills Berrinba Northgate Parkinson Pinkenba Richlands Rocklea Yatala Altona 357 Collins St Dandenong Freshwater (Stage 3) Keysborough Laverton Melbourne Airport Mulgrave Rowville West Park Beverley Burbridge Business Park Industrial pre-lease Industrial land & build Industrial speculative Industrial land sales Commercial 26 July

49 Residential Pipeline positioning. Pipeline by geography Pipeline by product type Pipeline by price point 2% 9% 8% 14% 23% Land 54% Housing & medium density High density 20% 72% Affordable Medium range Premium range 26% 72% 2% VIC NSW WA QLD 14% 22% 9% 54% Land Land Housing Housing & medium medium density density High High density density 17% 17% 11% 11% Affordable 72% 72% Medium range Premium range 31% 26 Note: June By 2012 number of lots, includes % Half Year of joint Results ventures Briefing and PDAs 26 July

50 Residential Pipeline breakdown. 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 age yrs Average age yrs Average age yrs Development life yrs Development life yrs Development life yrs The Ponds, NSW Parkville, VIC Kangaroo Point, QLD Note: Includes 100% of joint ventures and PDAs June Weighted 2012 average by lots 2012 remaining Half Year Results Briefing 26 July

51 Residential Pipeline detail. Major wholly owned projects NSW QLD 5,917 lots with an estimated on-completion value of $2.9bn Project Type 1 Total lots Lots sold Lots (to go) End value to go $m Contracts on hand Ownership Revenue start Estimated revenue finish Ashlar H/MD % Elderslie Land % Greenhills Beach Land % Lidcombe H/MD % Wolli Creek HD % Hamilton H/MD % Hope Island Land % Ivadale Lakes Land % Kangaroo Point HD % Park Ridge Land % Springfield Land % VIC Burwood H/MD % Carlton H/MD % Cranbourne West Land % Greenvale Land % WA Cockburn Central H/MD % Port Coogee Land % June H/MD 2012 Housing / medium 2012 density, Half Year HD Results High density Briefing 26 July

52 Residential Pipeline detail. Major JVs and PDAs 1 NSW 15,345 lots with an estimated on-completion value of $5.1bn Project Type 2 Total lots Lots sold Lots (to go) End value to go $m Contracts on hand Ownership Revenue start Estimated revenue finish Clemton Park H/MD % Lidcombe H/MD % Shell Cove Land 2,600 1,549 1, PDA The Ponds Land 1,324 1, PDA Wolli Creek HD % VIC Beveridge Land 3,800-3, PDA Clyde North Land 2, , % & PDA Croydon Land % Parkville H/MD % Point Cook Land % Sunbury Land PDA Sunshine H/MD % Wallan Land 1, , % Westmeadows H/MD PDA WA Baldivis Land % Byford Land % Port Coogee Land % Yanchep Land 1, , % Includes 100% of joint ventures and PDAs June H/MD 2012 Housing / medium 2012 density, Half Year HD Results High density Briefing 26 July

53 Residential Pipeline overview Lots under management 1 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, , ,701 VIC 15 9,818 1,809-11,627 2, ,472 QLD 9 1, , WA 8 2, , ,127 Total 43 15,331 4,232 1,699 21,262 4,507 2,409 1,133 8,049 Wholly owned 23 2,772 2, ,917 1,004 1, ,938 JV / PDAs 20 12,559 1, ,345 3,503 1, ,111 Total 43 15,331 4,232 1,699 21,262 4,507 2,409 1,133 8, June Includes % of joint ventures 2012 Half and Year PDAs Results Briefing 26 July

54 Residential Pipeline overview. ALZ share 1 Lots remaining End value ($m) No. projects Land Housing & medium density High density Total Land Housing & medium density High density Total NSW ,300 1,101 3, ,860 VIC 15 5,470 1,144-6,614 1, ,010 QLD 9 1, , WA 8 1, , Total 43 9,060 3,146 1,275 13,481 2,732 1, ,402 Wholly owned 23 2,772 2, ,800 1,004 1, ,870 JV / PDAs 20 6, ,681 1, ,532 Total 43 9,060 3,146 1,275 13,481 2,732 1, , June Includes 2012 ALZ share of joint 2012 ventures Half Year and Results PDAs Briefing 26 July

55 Residential HY12 metrics. ALZ share 1 Land 1H12 Lots sold 275 Revenue $144m Average sale price 2 $589k Housing & medium density 1H12 Lots sold 175 Revenue $87m Average sale price 2 $497k High density 1H12 Lots sold 39 Revenue $29m Average sale price $744k Lot sales by geography WA WA NSW NSW VIC VIC QLD QLD Lot sales by segment Land Land Land Housing & medium Housing Housing density& medium medium High density density High High density density 12% 12% 34% 34% 26% 26% 28% 28% 8% 11% 11% 17% 17% 36% 56% 72% 72% 1. Includes ALZ share of joint ventures and PDAs 2. Average sale price adjusted to exclude lots and revenue sold under PDA 26 June structures 2012 as sales from 2012 PDAs Half are Year not included Results in Briefing reported revenue 26 July

56 Residential HY12 metrics. ALZ share 1 Lots sold NSW VIC WA QLD Total Land Housing & medium density High density Total Wholly owned JV / PDAs Total Revenue ($m) NSW VIC WA QLD Total Land Housing & medium density High density Total Wholly owned JV / PDAs Total Includes ALZ share of joint ventures and PDAs June Excludes 2012 revenue from 2012 projects Half under Year PDA Results structures Briefing 26 July

57 1H12 Results Australand Holdings Limited (ABN ) Australand Property Limited (ABN ; AFSLN ) as the responsible entity of Australand Property Trust (ARSN ) and Australand ASSETS Trust (ARSN ) Australand Investments Limited (ABN ; AFSLN ) as the responsible entity of Australand Property Trust No.4 (ARSN ) and Australand Property Trust No.5 (ARSN ) Level 3, 1C Homebush Bay Drive Rhodes NSW 2138 Ph: Fax: 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. For personal use onlybriefing Disclaimer. 26 July