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Brookfield Renewable — Brookfield Australia Investments Group (Multiplex SITES Trust) — FY2010 Earnings Presentation
50 slides from Brookfield Renewable's earnings presentation, February 2011
Slide 1: December 2010 Financial Results and Corporate Profile
BROOKFIELD Multiplex SITESOFFICE Trust PROPERTIES December 2010 Financial Results and Corporate AUSTRALIA Profile (BOPA) INITIAL February PUBLIC 2011 OFFERING
Slide 2: Important Notice
Important Notice Whilst this presentation has been prepared in good faith, no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained in the presentation (any of which may change witho
Slide 3: Agenda
Agenda 1. Financial Results 2. Q&A Appendices • Overview of Multiplex SITES • Corporate Profile 2
Slide 4: Financial Results
FINANCIAL RESULTS
Slide 5: SITES Distributions
SITES Distributions In accordance with the terms for Multiplex SITES, the distribution rate is currently the three month bank bill rate plus a margin of 390 bps. Below is a summary of the quarterly distributions and the rates paid during the past 12 months. Quarterly Period Ended Distribution Ra
Slide 6: Highlights for the year ended 31 December 2010
Highlights for the year ended 31 December 2010 Financial Funds from operations(1) for the period of $192.1 million Net profit after tax attributable to stapled security holders of $62.4 million for the period Capital / Funding Completed property-level and corporate debt financings totaling $1.
Slide 7: Highlights for the year ended 31 December 2010
Highlights for the year ended 31 December 2010 Operational Replenished Construction workbook, increasing workbook to $5.4 billion in Australasia (up from $3.3 billion at June 2010) Workbook driven by the award of the following projects over $100 million in the 6 months to December: − Fiona Stanl
Slide 8: Overview of Earnings – Funds from Operations
Overview of Earnings – Funds from Operations 12 Months 12 Months Change (A$m) to 31 Dec 2010 to 31 Dec 2009 Commercial property operations 122.9 121.9 1.0 Residential development operations (6.9) (5.3) (1.6) Constructions 84.1 43.0 41.1 Services 7.8 (1) 9.9 (2.1) Corporate (General and Admin) (15.8)
Slide 9: Overview of Earnings – Net Income
Overview of Earnings – Net Income 12 months to 12 months to Change (A$m) 31 December 2010 31 December 2009 Funds from Operations 192.1 141.1 51.0 Depreciation/Amortisation (25.7) (17.3) (8.4) Fair Value Adjustments 41.9 (351.8) 393.7 Provisions (31.4) (129.9) 98.5 Minority Interest (34.9) (18.9) (16
Slide 10: Balance Sheet - Assets
Balance Sheet - Assets 31 December 31 December Change (A$m) 2010 (A$m) 2009 (A$m) Cash and equivalents 213.7 265.8 (52.1) Trade and other receivables 617.7 899.8 (282.1) Inventories 559.1 665.8 (106.7) Other assets 310.7 170.5 140.2 Investment in promissory note 1,300.0 1,300.0 (0.0) Equity accounte
Slide 11: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity 31 December 31 December Change (A$m) 2010 (A$m) 2009 (A$m) Liabilities Trade and other payables 625.0 525.8 99.2 Interest bearing loans and borrowings 2,399.0 3,373.2 (974.8) Non-interest bearing loans and borrowings 238.0 337.4 (99.4) Other liabilities 172.0 1
Slide 12: External Debt Maturity Profile
External Debt Maturity Profile 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec Rate (%) Term (Yr) Total 2011 2012 2013 2014 2015 Floating Fixed Commercial Properties 8.0 1.7 3,177.4 1,051.0 1,198.4 751.2 176.8 - 1,180.2 1,997.2 Residential Properties 8.3 1.1 220.7 158.9 17.2 44.6 - - 164.1 56.6 Finance Leases -
Slide 13: Outlook
Outlook 12 Brookfield
Slide 14: Overview of Multiplex SITES
OVERVIEW OF MULTIPLEX SITES
Slide 15: Multiplex SITES – Capital Structure
Multiplex SITES – Capital Structure Multiplex SITES are Step-up Income-distributing Trust-issued Exchangeable Securities, which are fully paid units issued by Multiplex SITES Trust Brookfield Funds Management Limited is the responsible entity of Multiplex SITES Trust SITES are listed on the AS
Slide 16: Multiplex SITES – Capital Structure
Multiplex SITES – Capital Structure Brookfield Australia Investments Limited and Brookfield Australia Property Trust guarantee the face value of the SITES on redemption and any unpaid distributions in the year preceding redemption on an unsecured and subordinated basis The guarantees rank ahead
Slide 17: Corporate Profile
CORPORATE PROFILE
Slide 18: Overview of Operations
Overview of Operations Commercial Properties – Invested in 52 properties, comprising 1,284,000 sqm in Australia and New Zealand – High rents, high occupancy levels and long-term leases to Government and institutional grade tenants – Steady cashflow from stable operating income – 2 development proj
Slide 19: Top Markets, Premier Portfolio
Top Markets, Premier Portfolio Our portfolio includes well-located, prominent assets in Australia’s top markets Value NOI Cap Market Sqm (000’) (1) (A$m) (A$m) (2) Rate % Sydney - Office 450.1 2,050.3 163.9 7.2 Brisbane - Office 76.9 406.1 30.1 7.8 Melbourne - Office 211.6 944.1 71.9 7.0 Perth - Off
Slide 20: Commercial Property Investments
Commercial Property Investments $5.7 billion of commercial property investments across 52 completed assets (including $787.9 million of equity accounted property investments) and 7 development projects Investment by Market ($) Investment by Sector ($) Sydney Brisbane Melbourne Office Retail & Indust
Slide 21: Long Term Lease Profile
Long Term Lease Profile 6.7 years weighted average lease term and minimal near-term lease expiries - limits market risk Average Lease term by market 7.9 7.7 7.0 7.0 6.7 4.8 2.9 3.0 Sydney Brisbane Melbourne Perth Canberra New Zealand Retail & Average Industrial 20
Slide 22: Leasing Exposure: Low Rollover Profile
Leasing Exposure: Low Rollover Profile Limited vacancy and rollover exposures - ensures continuity of income stream combined with low levels of capital expenditure and leasing costs. Lease Expiry Profile 700,000 600,000 500,000 400,000 NLA m2 300,000 200,000 100,000 - Currently 2011 2012 2013 2014 2
Slide 23: Diversified, High Credit Quality Tenants
Diversified, High Credit Quality Tenants NLA Sqm Remaining Credit Tenant Name (000's) Building Sector Lease Term Rating State of Victoria 78 Southern Cross East Government 10.7 AAA Commonwealth Bank of Australia 64 Darling Park Tower 1 and CBA Building Banking / Investment 9.4 AA Commonwealth of Aus
Slide 24: Industry Leading Occupancy Rates
Industry Leading Occupancy Rates Office Vacancy Our portfolio occupancy rate is Rates 96.2% 17.0% 13.8% 10.4% 9.0% 8.1% 7.7% 6.6% 5.4% 5.2% 4.4% 3.8% 3.2% 2.7% 1.1% 0.5% 0.0% Sydney Brisbane Melbourne Perth Canberra New Zealand Retail & Total Industrial Brookfield Q4 2010 Market Notes: * Office mark
Slide 25: Commercial Developments
Commercial Developments Premium quality assets under construction with a solid pipeline for the future Ownership Under Construction Interest (%) Buildable (sqm) Pre-leased (%) Claremont Quarter (1) 50 29,399 95 City Square 100 86,400 72 115,799 Ownership Interest Estimated Pipeline for Future Develo
Slide 26: Residential Development
Residential Development Brookfield
Slide 27: Residential Development
Residential Development Brookfield Residential’s pipeline of almost 14,300 residential lots and apartment units will provide the basis for continued growth in our key markets Market presence across Australia positions us well to take advantage of distressed opportunities in the current market De
Slide 28: Residential Development
Residential Development Apartments No of Units Completed Stock 106 Apartments work in progress 217 Sites held for future development 1,542 Under option 1,235 3,100 Communities Completed Lots 62 Communities work in progress 2,485 Sites held for future development 4,748 Under option 3,900 11,195 27
Slide 29: Construction
Construction Brookfield
Slide 30: Construction
Construction As at 31 December 2010, the construction portfolio has total contract value of approximately $5.4 billion across the residential, commercial, heath, retail and engineering sectors within Australia and New Zealand Closing Opening New Projects Work Foreign Balance Balance June Secured C
Slide 31: Construction
Construction As at 31 December 2010, the Australasian construction workbook is as follows: Asset Approximate Contract Completion Project Name Location Value (A$m) Date Fiona Stanley Hospital WA 1,629 Q3 2013 City Square WA 736 Q3 2012 Hilton Surfers Paradise Hotel and Residences QLD 369 Q4 2011 NS
Slide 32: Services
Services Brookfield
Slide 33: Services
Services The Services team provide integrated real estate, facilities management and project management services to commercial property owners and occupiers, infrastructure owners and residential investors Commercial Property – Manage more than 2,000,000 square meters and 2,000 leases/licences for
Slide 34: Portfolio Details
Portfolio Details Brookfield
Slide 35: Sydney
Sydney One Shelley Street Sydney Water NAB House IAG House Headquarters • 32,988 sqm • 23,331 sqm • 39,645 sqm • 38,743 sqm • 100% occupied • 100% occupied • 99% occupied • 100% occupied • 100% owned • 100% owned • 25% owned • 50% owned 34
Slide 36: Sydney
Sydney KPMG Tower 15 Blue Street ATO World Square Darling Park • 27,778 sqm • 15,874 sqm • 23,035 sqm • 111,894 sqm • 100% occupied • 97% occupied • 100% occupied • 98% occupied • 50% owned • 100% owned • 50% owned • 30% owned 35
Slide 37: Sydney
Sydney Ernst & Young American Express House Jessie Street Pittwater Place Sydney (including Centre 50 Goulburn St) • 67,998 sqm • 14,974 sqm • 12,074 sqm • 53,825 sqm • 100% occupied • 100% occupied • 97% occupied • 97% occupied • 50% owned (BPACB) • 100% owned (BPACB) • 100% owned • 100% owned 36
Slide 38: Sydney
Sydney King Street Wharf World Square Dee Why Luna Park Retail Retail Town Centre Car Park • 5,654 sqm • 15,933 sqm • 12,797 sqm • 389 parking spaces • 95% occupied • 99% occupied • 87% occupied • 100% owned • 100% owned • 50% owned • 100% owned 37
Slide 39: Sydney and Canberra
Sydney and Canberra Rosehill Alinga Street (Canberra) • 88,154 sqm • 16,331 sqm • 100% occupied • 100% occupied • 100% owned • 100% owned 38
Slide 40: Brisbane
Brisbane AMP Place CBA Building ANZ Centre Carole Park • 28,224 sqm • 28,277 sqm • 20,392 sqm • 39,074 sqm • 90% occupied • 97% occupied • 87% occupied • 100% occupied • 100% owned • 100% owned • 50% owned • 100% owned 39
Slide 41: Brisbane
Brisbane Great Western Meeandah Super Centre • 19,468 sqm • 15,146 sqm • 100% occupied • 95% occupied • 100% owned • 100% owned 40
Slide 42: Perth
Perth Bishop See BankWest Ernst & Young Perth Carillon City South Tower Tower Arcade and Tower • 17,836 sqm • 39,240 sqm • 11,528 sqm • 16,572 sqm • 100% occupied • 84% occupied • 100% occupied • 92% occupied • 50% owned • 50% owned • 100% owned • 50% owned 41
Slide 43: Melbourne
Melbourne Bourke Place Southern Cross Southern Cross Defence Plaza West Tower East Tower • 65,374 sqm • 47,370 sqm • 79,733 sqm • 19,089 sqm • 99% occupied • 100% occupied • 100% occupied • 98% occupied • 43% owned • 50% owned • 100% owned • 100% owned Note – 25% consolidated via (BPACB) BPACB 42
Slide 44: New Zealand
New Zealand ASB Bank Centre AIA House Gen-I Tower University Building • 33,443 sqm • 9,486 sqm • 22,614 sqm • 5,088 sqm • 96% occupied • 100% occupied • 99% occupied • 100% occupied • 100% owned • 100% owned • 100% owned • 100% owned (MNZPF) (MNZPF) (MNZPF) (MNZPF) 43
Slide 45: New Zealand
New Zealand Uniservices House The Plaza Telecom House EDS House • 7,438 sqm • 4,692 sqm • 15,664 sqm • 9,940 sqm • 100% occupied • 20% occupied • 0% occupied • 100% occupied • 100% owned • 100% owned • 100% owned • 100% owned (MNZPF) (MNZPF) (MNZPF) (MNZPF) 44
Slide 46: New Zealand
New Zealand Mangere Tel Tower Conservation House Valley Mega Centre 1 Distribution Centre • 7,593 sqm • 8,469 sqm • 65,273 sqm • 11,676 sqm • 100% occupied • 98% occupied • 100% occupied • 100% occupied • 100% owned • 100% owned • 100% owned • 100% owned (MNZPF) (MNZPF) (MNZPF) (MNZPF) 45
Slide 47: New Zealand
New Zealand Valley Mega Centre 2 The Hub • 7,724 sqm • 26,674 sqm • 85% occupied • 100% occupied • 100% owned • 100% owned (MNZPF) (MNZPF) 46
Slide 48: Commercial Development
Commercial Development Brookfield
Slide 49: Claremont Quarter
Claremont Quarter Ideally located between the city, river and ocean, Claremont Quarter is the heart of what has become known as the ‘Golden Triangle’, surrounded by Perth’s most affluent suburbs. The site area is approximately 29,000sqm and is being developed in two stages. Stage 1 (14,000sqm retail
Slide 50: City Square
City Square The property is situated at one of the most prestigious locations in Perth’s CBD, with extensive frontage on St Georges Terrace and access to Mounts Bay Road and two major east-west thoroughfares. The premium-grade 45 level tower will be the new premises for BHP Billiton for a term of 15
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