Goodman : GMT Annual Meeting Presentation

Goodman Property Trust

Annual Meeting 2020

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Goodman Property Trust Annual Meeting 2020

Meeting agenda

• Review the operating performance of the Trust and the strategy for a more challenging economic environment
• Consider and vote on one ordinary resolution
• • re-appointmentof Susan Paterson as an Independent Director

Keith Smith

Chairman and Independent Director

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Goodman Property Trust Annual Meeting 2020

Questions and answers

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Keith Smith

Chairman and Independent Director

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Goodman Property Trust Annual Meeting 2020

Voting

Online voting is available at anytime.	332-013-351

To cast a vote

1. Click on the bar graph icon on the far right of the page
2. Click on either "For, Against or Abstain" and it will change colour to orange to show your vote has been received

Keith Smith

Chairman and Independent Director

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Goodman Property Trust Annual Meeting 2020

Board and executives

Keith Smith	Greg Goodman	Leonie Freeman	John Dakin
Chairman & Independent Director	Non-executive Director	Independent Director	Executive Director and CEO

Susan Paterson	Phil Pryke	Peter Simmonds	Andy Eakin
Independent Director	Non-executive Director	Independent Director	Chief Financial Officer

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Goodman Property Trust Annual Meeting 2020

Advisors

+	Trustee	Covenant Trustee Services Limited
+	Auditor	PricewaterhouseCoopers

Keith Smith

Chairman and Independent Director

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Goodman Property Trust Annual Meeting 2020

Meeting formalities

• Nominated Chairman
• Notice of meeting properly given
• Quorum confirmed

Keith Smith

Chairman and Independent Director

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Goodman Property Trust Annual Meeting 2020

Year in review

$284.4m

Profit before tax

$175m

New equity

100%

Auckland industrial weighting

Gateway warehouses, Highbrook Business Park

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Goodman Property Trust Annual Meeting 2020

COVID-19 impacts

• Health and safety of staff, customers and contractors continued to be first priority
• Goodman classified as an essential business
• Income receipts representing around 95% of rent due over last four months has been paid
• Remain cautious of longer-term economic impacts

Keith Smith

Chairman and Independent Director

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Goodman Property Trust Annual Meeting 2020

Distribution policy

• Amended to ensure the business can continue to grow sustainably
• Adopting a pay-out ratio of between 80% and 90% of cash earnings1 aligns distributions with the underlying cashflows from GMT's stabilised portfolio
• Cash distributions of at least 5.3 cents per unit are expected to be paid in FY21

1 Cash earnings is a non-GAAP financial measure that assesses underlying operating cashflows, after adjusting for borrowing costs and Manager's base fee capitalised to land and expenditure related to building maintenance.

Keith Smith

Chairman and Independent Director

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Goodman Property Trust Annual Meeting 2020

Financial overview

Gateway warehouses, Highbrook Business Park

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Goodman Property Trust Annual Meeting 2020

Andy Eakin

Chief Financial Officer

FY20 highlights

$	m	$	m	6.65cpu
261.9	165.8
Profit after tax	m	Portfolio revaluation		FY20 cash distribution
$	cpu	28.1%
145.3	172.7		Total Unitholder Return1
Net rental income		Net tangible asset backing
				12 months to 31 March 2020

1 GMT's stock market performance calculated on an accumulation basis, aligned with performance fee calculation.

Goodman Property Trust Annual Meeting 2020

	Andy Eakin
Gearing and liquidity
Chief Financial Officer

+ $1.2 billion of asset sales since 2014 with more than $800	Andy Eakin
million reinvested into new development projects	Chief Financial Officer

• Greater financial flexibility with $175 million of new equity, raised at $2.10 per unit
• Committed gearing of just 20.6%
• Refinancing of bank facilities provides almost $400 million of liquidity

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Goodman Property Trust Annual Meeting 2020

Treasury initiatives

• 96% of drawn debt from non-bank sources

Andy Eakin

Chief Financial Officer

Bank debt

4%

• Undrawn bank facilities of almost $400 million
• GMT credit rating of BBB reaffirmed with debt rated BBB+

USPP notes

32%

Bonds 64%

Funding sources shown on a drawn basis as at 31 March 2020

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Goodman Property Trust Annual Meeting 2020

Operational review

Westney Industry Park

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Goodman Property Trust Annual Meeting 2020

Investment strategy

• Industrial property plays a critical role in supply chains
• Continued urbanisation and growth of e-commerce contributing to increased demand for warehouse and logistics space
• GMT positioned to take advantage of these global trends
• Auckland is the preferred investment market, commercial centre of the country and its largest consumer market

John Dakin

Chief Executive Officer Executive Director

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Goodman Property Trust Annual Meeting 2020

Property portfolio

$3.1bn

Value

99%

Occupancy

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Goodman Property Trust Annual Meeting 2020

Customer focus

• Portfolio focused on storage, logistics and distribution
• Large proportion of customers' businesses were classified as essential throughout lockdown
• Support was directed at the most vulnerable businesses, those with limited financial capacity

John Dakin

Chief Executive Officer

Executive Director

Mainfreight image

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Goodman Property Trust Annual Meeting 2020

Development programme

Active Healthcare, Highbrook Business Park

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Goodman Property Trust Annual Meeting 2020

Completed developments

John Dakin

Chief Executive Officer

Executive Director

El Kobar units

Estate	Highbrook Business Park
Completion	March 2020
NLA	5,330 sqm

Hellmann

Estate	Highbrook Business Park
Completion	December 2019
NLA	3,548 sqm

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Goodman Property Trust Annual Meeting 2020

Completed developments

John Dakin

Chief Executive Officer

Executive Director

Paramount

Estate	Highbrook Business Park
Completion	December 2019
NLA	2,999 sqm

NZ Food Network

Estate	Highbrook Business Park
Completion	October 2019
NLA	1,024 sqm

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Goodman Property Trust Annual ResultM eting20202020

NCI Packaging

Savill Link

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Goodman Property Trust Annual Meeting 2020

Development progress

• Over 80% of the portfolio has been built since 2004
• Eleven new facilities completed in FY20
• • Provides almost 35,000 sqm of high-quality space
  • Value on completion was $158.6 million, contributing $22.5 million of fair value gains
  • Projects are 100% leased with a weighted average lease term of more than 10 years
• Around $100 million of work in progress

John Dakin

Chief Executive Officer Executive Director

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Goodman Property Trust Annual Meeting 2020

Mt Wellington acquisitions

Mt Wellington Estate

	OfficeMax	7,350sqm
	Goodman Property Trust Annual Meeting 2020
			Warehouse extension
	Highbrook
	880

Panel, solar array

20%

Electrical demand

Warehouse extension

Goodman Property Trust Annual Meeting 2020

Sustainability - Carbon

• Green House Gas emissions
• • FY19 CDP rating of B-
  • Emissions inventory completed for FY20
  • Independent audit assurance
• Future targets
• • Carbon neutral business operations by 2025
  • 100% renewable energy use by 2025

John Dakin

Chief Executive Officer Executive Director

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Goodman Property Trust Annual Result 2020

Goodman

Foundation

1,250

Tonnes of food rescued

3.6

Million meals (equivalent)

Goodman Property Trust Annual Meeting 2020

Business outlook

• COVID-19is constraining economic growth globally
• GMT's investment strategy is focused on urban logistics property in Auckland
• The Trust is uniquely placed to benefit from the growing demand for distribution facilities close to consumers
• Market fundamentals remain strong with good levels of customer demand
• GMT is a well capitalised and resilient business that will continue to be managed prudently

John Dakin

Chief Executive Officer Executive Director

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Goodman Property Trust Annual Meeting 2020

Goodman Group

Greg Goodman

Chief Executive Officer

Executive Director

394

Properties under management

$49.2bn

Total assets under management

As at 31 December 2019.

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Goodman Property Trust Annual Meeting 2020

Questions

Highbrook Business Park

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Goodman Property Trust Annual Meeting 2020

Formal business

Resolution 1: Re-appointment of

Susan Paterson

As an ordinary resolution, that Unitholders approve the re-appointment of Susan Paterson as an Independent Director of the Manager.

Susan Paterson

Independent Director

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Goodman Property Trust Annual Meeting 2020

Voting and close

• We will now close the poll and conclude the meeting
• The result will be announced on the NZX

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Thank you

Disclaimer: The information and opinions in this presentation were prepared by Goodman (NZ) Limited on behalf of Goodman Property Trust and its subsidiaries (Goodman). Goodman makes no representation or warranty as to the accuracy or completeness of the information in this presentation.

Opinions including estimates and projections in this presentation constitute the current judgment of Goodman as at the date of this presentation. They are subject to change without notice. Such opinions are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond Goodman's control, and which may cause actual Meetings to differ materially from those expressed in this presentation.

Goodman undertakes no obligation to update any information or opinions whether as a Meeting of new information, future events or otherwise. This presentation is provided for information purposes only.

No contract or other legal obligations shall arise between Goodman and any recipient of this presentation.

Neither Goodman, nor any of its Board members, officers, employees, advisers or other representatives will be liable (in contract or tort, including negligence, or otherwise) for any direct or indirect damage, loss or cost (including legal costs) incurred or suffered by any recipient of this presentation or other person in connection with this presentation.

M20 Business Park, Wiri

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