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nzx release+

GMT Annual Meeting of Unitholders

Date

7 July 2021

Release

Immediate

WELCOME

Good afternoon ladies and gentlemen and welcome to this annual meeting of Unitholders. I'm Keith Smith, Independent Director and Chair of Goodman (NZ) Limited, the Manager of Goodman Property Trust.

It's pleasing to be hosting a physical meeting again after the disruption to public gatherings last year. Adopting a hybrid format for this event allows us to engage with all our investors, either in person or via a live webcast. The technology also allows our two Australian-based directors to participate in the Meeting while trans-Tasman travel is restricted.

Today's presentations will focus on the strong operating performance of the Trust, new sustainability commitments and our strategy for future growth. The meeting will also consider three ordinary resolutions relating to the re-appointment of Independent Directors.

Before we proceed, I would like to cover off some health and safety matters relating to the use of this venue.

In the unlikely event of an emergency you will be required to evacuate and assemble outside in a designated safe area. Should this occur please exit the room through the rear doors and follow the directions of Eden Park staff.

The bathrooms are also located through these rear doors, in the foyer of this meeting room.

Level 2, 18 Viaduct Harbour Avenue, Auckland | PO Box 90940, Victoria Street West, Auckland 1142

Tel +64 9 375 6060 | www.goodman.com/nz

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A key difference between a virtual meeting and a physical one is in the way voting is conducted and how questions are dealt with.

INSTRUCTIONS FOR WEBCAST PARTICIPANTS

For Unitholders participating through the live webcast, polling on the three resolutions has now opened. Votes can be cast by selecting the polling icon on the instruction screen and following the prompts. Votes can be amended up until the time the poll closes, which is at the conclusion of the meeting.

Now the meeting has started, questions can also be submitted through the webcast portal. We have allocated time at the end of the presentations to answer these, but they can be submitted at any stage.

If you experience any technical issues casting your vote or submitting questions, please refer to the instructions provided in the Virtual Annual Meeting Guide that accompanied the Notice of Meeting.

ATTENDANCE AND BOARD COMPOSITION

I would now like to introduce the members of the Board and executives of the Manager who are in attendance today. In addition to myself we have David Gibson, Laurissa Cooney, Andy Eakin and John Dakin.

Leonie Freeman, Greg Goodman and Phil Pryke join us online.

We have progressed our Board renewal programme since the last meeting and I'm pleased to welcome Laurissa and David as new Independent Directors. Their appointments follow the retirement of Peter Simmonds and Susan Paterson, after more than 10 years of valued service.

Laurissa and David are both experienced and capable Directors who will continue the strong governance and oversight that has characterised the growth of GMT. They will speak later in the meeting, outlining their professional achievements and areas of interest and expertise.

Level 2, 18 Viaduct Harbour Avenue, Auckland | PO Box 90940, Victoria Street West, Auckland 1142 Tel +64 9 375 6060 | www.goodman.com/nz

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REPRESENTATIVES OF TRUSTEE AND ADVISORS

In addition to the directors and executives present today, we also have representatives of the Trustee and other advisors present. These representatives will be available to answer any questions if required.

MEETING FORMALITIES

I'd now like to work through some of the formalities of an annual meeting.

I'd like it noted that, in accordance with the Trust Deed, I have been nominated by the Trustee to act as Chair of this meeting and I have now tabled this nomination.

I also confirm that the meeting has been properly convened and notice has been formally given to Unitholders.

And finally, I can confirm that we have satisfied the requirements for a quorum. Now the formalities have been addressed we can proceed.

Level 2, 18 Viaduct Harbour Avenue, Auckland | PO Box 90940, Victoria Street West, Auckland 1142 Tel +64 9 375 6060 | www.goodman.com/nz

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YEAR IN REVIEW

It has been a challenging 12 months since we last met, with the rapid spread of COVID- 19 disrupting lives and economies all around the world. I'm pleased to note that New Zealand has avoided the worst of these impacts and that GMT has continued to deliver strong results for investors and other stakeholders.

The Board has been extremely pleased with the performance of the Trust and this year's statutory profit of almost $650 million before tax is a record for GMT.

While the pandemic has brought some challenges, it has also accelerated structural changes that are positive for our business. Advances in technology and changes in consumer behaviour are contributing to a growing digital economy.

An investment strategy focused on the urban logistics segment of the Auckland industrial market has positioned GMT to benefit from these trends. The continued growth of the city and the rapid expansion of online retailing is adding to the strong demand for well-located distribution space close to consumers.

These positive market dynamics are reflected in the Trust's operating results. Unitholders familiar with our reporting will know that cash earnings are our preferred measure of underlying operating performance. The Trust recorded a 2.9% increase in cash earnings this year to 6.4 cents per unit, and paid cash distributions of 5.3 cents per unit. The lower level of distribution is consistent with a revised distribution policy that now includes a target payout ratio of between 80% and 90% of cash earnings.

With the risks of COVID-19 in New Zealand being contained, the operating outlook has improved markedly from this time last year. Our guidance for FY22 reflects the improvement in business confidence, with a forecast increase in cash distributions to at least 5.5 cents per unit.

Level 2, 18 Viaduct Harbour Avenue, Auckland | PO Box 90940, Victoria Street West, Auckland 1142 Tel +64 9 375 6060 | www.goodman.com/nz

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INVESTMENT RETURNS

The forecast distribution equates to a cash yield of 2.3% at the current trading price of around $2.40 per unit. The metric is the strongest in the sector, reflecting the appeal of our investment strategy to investors. It's a broad group that includes a growing proportion of offshore funds. Collectively these investors now own around 20% of the Trust, up from 13% two years ago.

The relative strength of GMT's stock price through the period of market volatility associated with the early stages of the pandemic partly reflects the greater diversity and liquidity within the register.

The Trust has significantly outperformed the listed property sector on a total return basis over the past two years. The quantum of the outperformance in FY20 created a carry forward amount that resulted in Goodman, as Manager of the Trust, earning a performance fee this year of $13.7 million.

The relative performance measure means a performance fee is only earned when GMT out-performs its listed property peer-group and provides positive total returns to investors.

The Trust Deed requires that this fee is used to subscribe for new units in GMT. Given Goodman's substantial cornerstone investment in the Trust, the requirement reinforces an already strong alignment of interests between Goodman and other Unitholders.

SUSTAINABLE GROWTH

The Trust's sustainability programme is an area in which we have made significant progress over the last 12 months. A sustainable investment strategy leads to positive economic, environmental, and social outcomes for our business, our stakeholders and the world more broadly.

Addressing the impacts of climate change is a key focus and we have achieved a significant milestone this year, becoming a Toitū carboNZero certified business. Independent assurance from Toitū Envirocare confirms our greenhouse gas emissions have been measured in accordance with international standards and that we have

Level 2, 18 Viaduct Harbour Avenue, Auckland | PO Box 90940, Victoria Street West, Auckland 1142 Tel +64 9 375 6060 | www.goodman.com/nz

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Goodman Property Trust published this content on 07 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 July 2021 02:21:06 UTC.