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Kiwi Income Property Trust

Auckland asset tour

7 March 2012

2

Agenda

KIP office operations 29

Overview 4 Australian retail operations 21

KIP development operations 35

KIP retail operations 13

Sylvia Park 47 Notes: All data as at 31-Dec-11 and currency in New Zealand dollars unless otherwise stated The Trust’s financial year ends on 31 March

Overview

Chris Gudgeon

National Bank Centre, Auckland

4

Intensive asset management

Overview

5

Commonwealth Bank of Australia

Market Cap A$77.8 billion1

Colonial First State Global Asset Management

FUM A$141.9 billion1

CFSGAM Property

FUM A$18 billion1

Listed Property

Business & Private Banking

Wealth Management International Financial Services Retail Banking Services

CommInsure Colonial First State

Kiwi Income Property Trust (KIP)

New Zealand diversified

Portfolio statistics

Assets under Mgmt: NZ$2.1b1

Net gearing ratio: 34.5%1

NTA p/unit: $1.01

Portfolio occupancy: 96.7%1

CFS Retail Property Trust (CFX)

Australian retail

Portfolio statistics1

Assets under Mgmt: A$8.7b

Gearing: 28.1%

NTA p/unit: $2.06

Portfolio occupancy: 99.7%

Commonwealth Property Office Fund (CPA)

Australian office

Portfolio statistics1

Assets under Mgmt: A$3.5b

Gearing: 19.0%

NTA p/unit: $1.13

Portfolio occupancy: 97.2%

Institutional Banking & Markets

1 As at 31 December 2011

Overview: CFSGAM credentials

Corporate strength

6

South Australia

3 Retail assets

3 Office assets

40 Employees

Tasmania

2 Retail assets

19 Employees

Western Australia

2 Retail assets

4 Office assets

1 Industrial asset

30 Employees

CFSGAM Property has the scale, experience and expertise to drive asset performance

94 assets across Australia

and New Zealand 45 Retail assets 42 Office assets 4 Industrial assets 3 Hotel assets

1.8+ million sqm in retail

GLA under management

1.0 million sqm in office

NLA under management

520+ office tenants

5,900+ retail tenants

270+ million shoppers

through the retail centres each year

950+ employees


One of Australia’s largest fully-integrated real estate managers

New Zealand

6 Retail assets

6 Office assets

126 Employees

Victoria

15 Retail assets

6 Office assets

1 Hotel asset

462 Employees

Queensland

8 Retail assets

2 Office assets

1 Industrial asset

1 Hotel asset

99 Employees

New South Wales/ACT

9 Retail assets

21 Office assets

2 Industrial assets

1 Hotel asset

177 Employees

7


Retail management expertise

Chadstone Shopping Centre, VIC Australia’s largest shopping centre

Myer Melbourne, VIC Iconic Melbourne CBD retail development

Sylvia Park, Auckland New Zealand’s largest enclosed shopping centre

– One of the largest in-house asset management teams in Australia and New Zealand with over 730 retail management employees

– A$13.8 billion of retail assets under management

– In-house leasing team provides access to a wide range of local, national and international tenant relationships (5,900+ tenants across portfolio)

– Proven development expertise with over A$1.5 billion in retail developments successfully completed in the past three years

– Experienced joint-venture partner in retail ownership, management and development

8

– 26+ years of experience in office funds management

– 42 office buildings, 520+ tenants and A$5.4 billion of office assets under management across Australia and New Zealand

– In-house team of 33 employees in office funds and asset management

– Intensive focus on actively managing assets through leasing, refurbishment, and developments to drive performance

– Sustainability principles integrated in management processes and applied to all existing assets, acquisitions and new developments

– Experienced joint-venture partner in office ownership, management and development


Office management expertise

145 Ann Street, QLD A-grade development asset in Brisbane CBD

5 Martin Place, NSW A-grade development asset in Sydney CBD

Vero Centre, Auckland Premium asset in Auckland CBD

9

Research and market analysis Asset planning Strategic delivery

• Economic research • Country/region research • Consumer research • Global and emerging trends • Identification of potential

opportunities and threats

• Long-term strategic view • Short-term strategy • Develop strategic asset plan • Develop asset vision and

positioning • Identify specific asset

opportunities • Set measurable targets/goals for

success

• Strategic leasing • Property management strategy • Development master planning • Performance, monitor and

report • Financial management

Marketing

Operations

Retailer relationship management

Financial management

Leasing

Performance monitoring and reporting

Internal asset management support services

I n t e n s i v e a s s e t m a n a g e m e n t p r o c e s s

We focus on long-term value enhancement

Overview

Intensive asset management approach

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Overview

Responsible property investment

Focused on portfolio efficiencies 1. Statistics as at 31 March 2011

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KIP retail operations Karl Retief – Manager Retail Portfolio Gordon Bray – Manager Retail Leasing

Australian retail operations Martin James – General Manager, Major Leasing, Tenancy Design & Delivery

KIP office operations David Johnson – Manager Commercial Portfolio

Overview

Presenters

KIP development operations Mark Luker – General Manager Development

Sylvia Park Karl Retief – Manager Retail Portfolio Gordon Bray – Manager Retail Leasing

KIP retail operations

Karl Retief and Gordon Bray

Sylvia Park, Auckland

13


Retail operation credentials

Manager – Retail Portfolio Karl Retief

Manager – Retail Leasing Gordon Bray

General Manager – Development Mark Luker

Team 93

No. of key retail assets 6

Total portfolio value $1.24 billion

Tenants 788

Services Leasing

Development

Retail marketing and research

Risk management

Property management

Tenant management

Facilities management

Store design The Plaza, Palmerston North

14


NZ retail observations

– Consumers benefiting from low mortgage rates

– Sales growth firmed in last quarter of 2011

– Still in ‘sales’ mentality, bargain hunting!

– Major performances improving in particular supermarkets, Farmers, Kmart

– Strong NZ dollar helping with stock imports

– Retailers focusing on ‘Just In Time’ supply chain initiatives once again

– Occupancy levels remain strong in larger, well maintained centres

– Australian retailers still see NZ retail landscape as positive

– New store designs continue to evolve to attract shoppers – innovation, marketing, branding

LynnMall, Auckland

The Plaza, Palmerston North

15

Total sales by centre All statistics to 31-Dec-11 and incl. GST

MAT $m

Mvmt %

Occupancy rate %

Sylvia Park 440.8 +7.0 100.0

Northlands 390.5 +24.5 99.7

LynnMall 221.6 +5.3 97.9

The Plaza 192.3 +7.5 100.0

North City 101.9 +4.2 98.4

Centre Place 70.4 -21.4 82.6

Total portfolio 1,417.5 +8.8 97.8

Specialty gross occupancy cost (GOC)

– Affordability for retailers maintained, with specialty GOC ratio improving from 14.4% to 13.4% over the 12 months to 31-Dec-11

Forecast sales2

– Growth in 2012 is expected to be ~3-4%

– Supported by stronger economic and employment growth and improving consumer sentiment

– Growth over the long term is expected to be in line with nominal GDP at ~4%

Unaffected centre sales by category1

All statistics to 31-Dec-11 and incl. GST

MAT $m

Mvmt %

Supermarkets 186.6 +5.3

Department and discount department stores 81.2 +2.5

Cinemas 14.4 -6.1

Mini-majors 122.1 +15.6

Specialty 319.6 +4.4

Commercial services 41.0 +10.8

Total portfolio 764.9 +6.2

1 Unaffected centre sales looks to provide a more ‘normalised’ picture of sales trends. Sales:

• Include only those centres which have not undergone redevelopment in either period of comparison and therefore excludes The Plaza and Centre Place

• Excludes Northlands which has seen significant increased trading levels post the February 2011 earthquake

2 CFSGAM Research December 2011


Strong focus on driving retail sales growth and maintaining high occupancy rates

16


Online experience – ‘bricks and clicks’

– NZ Retailers Association (NZRA) indicates

• 5.1% of retail sales in NZ go through internet (AC Nielsen Research 2011)

• NZ shoppers purchased 4 or more items online in 2010, preference for items not available locally

– Gen-Y (18-29 years old) most active online shopper venturing offshore for cheap deals

– Online activity

• Gen-Y most active for fashion, cosmetics, gifts

• Gen-X most active for sporting, outdoor, deals and group buying, cosmetics and beauty

• Baby boomers most active for liquor, health, electrical

– Retailers see internet as another distribution channel to sell products

– Bricks represent: sensory, social, entertainment, low risk, immediate experience – can’t achieve this over internet

– iPhone/Android apps to communicate with shoppers specials, deals, portals to investigate, research, stock checks

Source: AC Nielsen and Global Markets (CBA) Research

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-6%

-4%

-2%

0%

2%

4%

6%

8%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

1989 1992 1995 1998 2001 2004 2007 2010 2013

% c

h Y

oY

% c

han

ge Y

oY

Real retail turnover Real GDP (RHS) Forecast GDP (RHS)

Forecast

Retail sales

improving

– New Zealand retail trade is gaining momentum following a pause in late 2010

– Nominal retail sales grew by 6.4% pa as at 30 September 2011, aided by the Rugby World Cup and higher inflation from an increase in GST

– Real retail sales up 4.0% pa as at 30 September 2011

Retail sales

outlook

– Outlook for New Zealand’s retail sales growth is one of steady improvement, supported by economic and employment growth

– Consumer likely to remain cautious while global economy remains uncertain

– Outlook 2012: 2% to 4% growth

– Outlook long-term: 4.0% or CPI plus 2% growth

Source: Statistics New Zealand, OECD, ASB forecasts and CFSGAM Research 1 Core retail sales for 12 months ending 30 September 2011 2 Estimated resident population at 30 June 2010

Region Retail sales

$m1

Population millions2

Sales per capita

Auckland 18,193 1,460 $12,464

Waikato 4,649 412 $11,298

Wellington 5,916 483 $12,241

Remainder of North Island 10,763 974 $11,046

Canterbury 6,747 566 $11,927

Remainder of South Island 5,751 473 $12,171

Total 52,019 4,368 $11,911


Outlook: Steady rate of retail sales growth expected

Retail turnover and economic growth

Retail turnover and population

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Sylvia Park Auckland

Northlands Christchurch

The Plaza Palmerston North

Net lettable area: 71,152 sqm

Number of tenants: 207

Occupancy rate: 100.0%

– December sales +7.0% for the year

– 91 upcoming lease renewals

– Opportunity to improve retail mix and precincting

– Potential foodcourt refresh




– Sales growth continues +24.5% for the year

– Solid demand for retail space

– Master planning of centre expansion

– CERA demands for detailed engineering evaluations




– Stable trade post development

– Sales +7.5% for the year

– Market research and segmentation analysis

– Tenancy mix refinement opportunity with expiries


Current focus and activity

19

LynnMall Auckland

Centre Place Hamilton

North City Porirua




– Progressive tenancy upgrades

– Sales increased 5.3% for the year

– Foodcourt upgrade completed

– Branding refresh for logo and signage

– Master planning progressing




– Redevelopment to introduce Farmers department store and remix




– Sales growth 4.2% for the year

– Remixing opportunities through lease renewals

– Council upgrade of CBD and road closure

– Johnsonville stalled

– BMS upgrade to save energy



Australian retail operations

Martin James

Chadstone Shopping Centre, Melbourne

21


CFSGAM Property asset management credentials

Our role is to ensure retail space is maximised for optimum investment performance

Chief Operating Officer David Marcun

Head of Retail Operations George Karabatsos

Head of Commercial & Industrial Operations

Jon Lesquereux

Team 730+

Assets 45 (retail), 42 (office)

Total portfolio c. $18 billion (incl NZ)

Tenants 5,900+ (retail), 520+ (office)

Coverage Australia and New Zealand

Services Leasing

Development

Retail marketing

Risk management

Property management

Tenant management

Retail

Office

Chadstone Shopping Centre, Melbourne

Grosvenor Place, Sydney

22


Supporting KIP strategy

– Development support

• Master planning

• Major tenant relationships

• International retailer relationships

• Tenancy mix - retail precincts

– Efficiency and excellence (process and reporting)

– Centre management: best practice benchmarking

• Weekly asset meetings

• Strategic asset plan for each retail asset

• Carpark operation expertise

• Strategic marketing overview

– Retail design: best practice benchmarking

• Centre Design Guidelines

• Design Critic Review for renewals

• Environmentally Sustainable Design

• Information exchange (12 retail design managers)

Northlands Shopping Centre, Christchurch

Northlands, Christchurch

23


Supporting KIP strategy – case studies

The Plaza Shopping Centre, Palmerston North

– $93 million redevelopment

– Increased NLA to over 32,000 sqm

– Opened on time and on budget

– Opened 100% leased

– MAT growth to 31 December 2011, +7.5%

Support from Australia

– Development leasing review

• Tenancy mix, tenancy carve up, leasing strategy

• Feasibility review

• Fortnightly meetings in New Zealand

• Attendance at Project Control Groups in Palmerston North

• Leverage Australian retailer relationships - Just Group, Cotton On Group, Speciality Fashion, JB Hi-Fi, OPSM, Witchery, Brazin Group etc

The Plaza, Palmerston North - After

The Plaza, Palmerston North - Before

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LynnMall Auckland


– Master planning

– Tenant relationships - JB Hi-Fi, Forever New

– Master planning

– Major tenant relationships

– Master planning, retail planning

– Feasibility reviews

– Leasing strategy assistance


Supporting KIP strategy – case studies

Static centre leasing support

– Standard minutes - risk/forward work load/strategy

– Right tenant/right location

– Record tenant bank

– Reviewing leasing process

– Monthly reporting

– Australian retailer meetings

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Australian retail observations

– Consumers benefiting from low unemployment, lower interest rates and solid wages growth

– Retail sales environment remains challenging with some discretionary spending being diverted to non-retail areas like travel

– Leasing for our Australian-managed centres was strong in the lead-up to Christmas (99.7% occupancy: CFS Retail Property Trust)

– National retailers are rationalising stores

– Food and services retailers continue to perform strongly while apparel sales have tempered

– Retailers continue to benefit from being located in well-managed shopping centres

– Retailers who have invested in their brand/product innovation/ digital marketing are benefiting most in the current environment

– Still strong demand from international luxury retailers in premium centres

– New entrants to market include GAP, Zara and Top Shop, with others mooted to enter in 2013

New Coach store at DFO Homebush

Queues outside Ralph Lauren, VIP day at Chadstone

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Online experience – ‘bricks and clicks’

– Total retail sales $240 billion1

• Online sales 3.9% (2012), 7.2% (2015), 11.8% (2020)

• UK (7.6%), USA (5%), Germany (5.9%), Japan (2.8%)

• Australian experience: 60% of online sales generated from domestic sites

– Online sales dominate a few retail categories

• Computers and software 60%, books 37%, sporting 11%

– Customers motivated by discount to retail price

• Books 58%, software 44%, beauty products 36%

– Constraints to online shopping

• 80% of population live within 7-minutes of a shopping centre

• 43% of retail spend on groceries and liquor

• Freight costs

• Touch, immediacy and fraud

– Opportunities for online shopping

• Range, price, convenience

• Multi channel marketing (bricks, clicks, social media)

• International retailers targeting Australia

Source: Urbis

27


Implications for NZ retail

DFO Moorabbin, Melbourne

– NZ retail market heavily reliant on Australian retail chain operations

– Australian retailers are expecting consumer confidence to return, improving sales and profitability

– Stores numbers are being rationalised to target investment in refreshing stores - new concepts and branding

– Selected expansion in prime locations

• CBD, regional or overseas

– Development of digital strategy in conjunction with existing store network

– Focus on the retail experience

• Service, product, marketing, visual merchandising and social media

– Landlord to improve customer amenity, product and experience

KIP office operations

David Johnson

Vero Centre, Auckland

29


Office credentials

Vero Centre, Auckland

Head of Office David Johnson

Team 3 asset managers 1 property manager 8 on-site facilities managers (contracted) Internalised facilities/property management model

No. of key assets 6

Total portfolio value $0.57 billion (as at 31-Dec-11)

No. of tenants 114

Services Asset management

Property management Facilities management Leasing (direct and through agency)

30


Observations and environment: Auckland

National Bank Centre, Auckland

Key indicator 12 month outlook for

Premium CBD office space

Supply 31,000 sqm of refurbished space to come on line in 2013

Tenant demand

Will increase with improvement in economic conditions and employment growth later in 2012

Vacancy rates Reducing with neutral supply line and rising occupier demand

Rent Moderate growth expected in 2012 but momentum gathering thereafter

Buyer demand Investment activity increasing

Investment yields Forecast to remain stable

Positive trend Stable trend

Source: CBRE Auckland Property Market Outlook (December 2011)

31


Observations and environment: Wellington

The Majestic Centre, Wellington

Key indicator 12 month outlook for

Premium CBD office space

Supply

No premium space coming on-stream. ~100,000 sqm of other grades coming to market in 2011/2012.

Tenant demand

Some occupier relocation/contraction expected in 2012 but demand for this space is expected to be positive minimising vacancy downtime

Vacancy rates Expected to remain low

Rent Moderate growth expected. Opex increasing reflecting higher insurance premiums

Buyer demand Investment activity will increase once rental growth expectations firm

Investment yields Forecast to remain stable, with more substantial firming by 2013/2014

Positive trend Stable trend

Source: CBRE Auckland Property Market Outlook (December 2011)

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Vero Centre Auckland

National Bank Centre Auckland

21 Pitt Street Auckland




– Highlights

• New lease to Vero to FY18 (9,213 sqm)

• Russell McVeagh renewed to FY16 (7,453 sqm)

– 5 leases/renewals (8,414 sqm)

– Further significant extensions likely




– Leasing program

• Tower 1 – ANZ 6,642 sqm (FY14)

• Tower 2 – 3,036 sqm (FY12)

– 12 new leases YTD (3,372 sqm)

• Shieff Angland (585 sqm)

• KVB Kunlun (585 sqm)

– Strong tenant retention opportunities




– 9 year lease to Beca commencing Mar-12

– Lessor base build refurbishment

– ARC expiry FY15 (2,223 sqm)

KIP office operations Current focus and activity

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Unisys House Wellington

44 The Terrace Wellington

The Majestic Centre Wellington




– Key lease expiries

• Crown Law – 4,806 sqm (FY13)

• Dept of Labour – 9,345 sqm (FY14)

• Unisys – 2,403 sqm (FY15)

– Potential refurbishment coincident with leasing

– Attractive offering for government sector




– Leasing program

• Level 3 & Part Ground – 1,050 sqm

– Commerce Commission extended to FY17 (5,244 sqm)




– Seismic strengthening program

• Strong project team assembled

• Concept design complete

• Start mid-12 complete by Dec-14

– Strong tenant support

– Tenant retention/extension opportunities

KIP office operations Current focus and activity

KIP development operations

Mark Luker

Centre Place, Hamilton

35


Development operation credentials

General Manager – Development

Mark Luker

No. in team 4

Services Master planning

Refurbishment

Remixing

Developments

Tenancy coordination

Store design

Redevelopments

Centre Place, Hamilton

36


ASB North Wharf Auckland


– Create premium CBD fashion and entertainment centre for Waikato

– New major Farmers tenancy secured

– Leasing program to secure new specialty tenants, retain selected existing retailers

– Negotiating with new cinema operator for high quality CBD offer

– Completed base build design

– Approval of amended Resource Consent application (picking up minor design amendments)

– Forward focus on completion of ASB fitout design

– Ground floor retail leasing underway

– Surrounding area enhancing ASB environs and connectivity

– Expanded bus interchange (including bus layover facilities)

– AMETI road widening transportation initiative

– Auckland Unitary Plan (in consultation with Auckland Council)



37

KIP development operations: Centre Place

Strategy – Adding value through investment decisions

38

– $39.9 million stage 2 redevelopment to reposition Centre Place as a competitive CBD specialty centre with a focus on fashion, dining and entertainment

• A new 7,000 sqm full-line Farmers department store anchoring the Centre on a 15-year lease to open late 2013

• First stage ($10 million) foodcourt and dining lane successfully completed September 2011

• New relocated mini-major Rebel Sport store opens June 2012

• Complements Hamilton City Council’s “City Heart” revitalisation scheme

Road closure facilitates improved pedestrian flows and urban environment

Improved availability and access for shopper parking

Key metrics

September 2011 valuation $86.5m

Project cost $39.9m

Forecast value on completion $140.0m

Forecast NOI on completion $11.0m

Incremental yield on total cost 8.4%

Centre NLA on completion 26,293 sqm

Number of shops on completion 118

MAT forecast1 $116.0m

1 Urbis Research (Aug-11)

Bryce Street entrance Dining Lane Foodcourt


Strategy – Adding value through investment decisions

39


Land holdings

WARD STREET

BRYCE STREET

VIC

TO

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ST

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ET

AN

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EA

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40

HCC – Carpark right hand turn (complete)

HCC – Ward St East upgrade (underway)

HCC Garden Place upgrade underway

HCC – signalised intersection (complete)


Working with Hamilton City Council

41

Tenancy type On completion

No. NLA [sqm]

Farmers 1 7,000

Cinemas 2 4,195

Mini-majors 2 1,690

Dining lane 6 1,010

Foodcourt 10 481

Specialty 90 11,898

ATM 7 19

Total 118 26,293

Pre-development 20,721

Dining lane

Foodcourt

Rebel Sport relocation

Ward Street retail pods

Farmers department store NEW SPECIALTY


Development 2012/2013: position on completion

42

Artist impression

Actual


Completed stages: foodcourt and dining lane

43

Artist impression

Actual


Completed stages: foodcourt and dining lane

Sylvia Park

Sylvia Park, Auckland

Karl Retief and Gordon Bray

45

Sylvia Park

Key attributes

– Located in the geographic heart of Auckland

– Superior carparking, access and public transport

– Strong market penetration in the primary/secondary trade area

– Easy to navigate layout and design, with strong customer experience focus

– Strong reputation and positioning

– Provides breadth of retail and attracts new retailers to New Zealand

– Provides the largest range of shops in an enclosed centre

• Strong supermarket offer

• Broad mix of fashion

• Attractive mix of food and beverage

• Well utilised foodcourt

Building grade: NZ Regional SC

Date completed: June 2007




Current valuation: $474.3m

Capitalisation rate: 6.75%

Notes: Property value as at 30-Sep-11.

Property statistics as at 31-Dec-11.

46

Sylvia Park

Retail catchment profile

— On main north/south railway line with own station

— Bus stations with 14 bus movements per hour through site

— Over 176,000 vehicles pass Sylvia Park per day

— 50% of Auckland’s population live within a 20-minute drive

Primary Secondary Tertiary Total

POPULATION 86,300 569,400 456,900 1,112,600

AGE PROFILE 100% 100% 100% 100%

0-14 23.1% 21.2% 24.5% 22.7%

15-19 6.9% 7.8% 7.8% 7.7%

20-29 16.5% 16.9% 13.2% 15.3%

30-39 17.7% 15.9% 15.5% 15.9%

40-59 23.4% 25.6% 25.8% 25.5%

60+ 12.4% 12.6% 13.3% 12.9%

HOUSEHOLDS 26,350 172,709 135,016 289,477

AVERAGE INCOME $65,764 $75,210 $69,082 $72,014

Source: Urbis Jan 2011

47

Sylvia Park Shopping Centre, Auckland

Sylvia Park

Aerial view

48

Convenience Precinct

Opened June 2006

NLA ~23,000 sqm

Anchors The Warehouse Extra Countdown Supermarket

Specialty ~50 shops, incl foodcourt

Fashion Precinct

Opened August 2006 / March 2007

NLA ~12,000 sqm

Specialty ~80 shops

Entertainment and Lifestyle Precinct

Opened March 2007

NLA ~20,000 sqm

Anchors Hoyts Borders Dick Smith Electronics Kathmandu

Specialty ~30 shops, incl dining lane

Homeware and General Merchandise Precinct

Opened June 2007

NLA ~15,000 sqm

Anchors PAK’nSAVE Supermarket Noel Leeming JB Hi-Fi The Baby Factory

Specialty ~40 shops

Sylvia Park

Intensive asset management: leasing

49

Sylvia Park

Intensive asset management: marketing

Building brand strength of Sylvia Park ‘This is the place’

– Experiential product launches and promotions

– ‘Off the Rack’ community campaign

– Fashion bloggers

– VIP fashion show

Entertainment leisure precinct appeal and strength

– Food reviewer

– ‘In the Kitchen’ campaign

National gift cards

– $3.27 million in sales to 31-Dec-11

– Growth of 18.9%

– Available online

Online strategy

– Developing smart phone app

– Fashion blogs, VIP rewards, vouchers, sale notifications and in-store mapping

All Whites promotional signing

VIP fashion show

50

Sylvia Park

Intensive asset management: sustainability

Sylvia Park Shopping Centre, Auckland

Sylvia Park equipped with a building management system

– Allows us to monitor, control and minimise energy use

All future tenancy fitouts to incorporate environmentally sustainable design principles

Waste minimisation progam well underway

ESD savings in 12 months to 31-Jan-12

– Water reduced 6%

– Waste reduced 4%

– Energy reduced 6%

51

Sylvia Park

Intensive asset management: development

Sylvia Park Shopping Centre, Auckland Sylvia Park, Auckland

– Private plan change approved by Council in September 2010 • Supports Council’s vision for a comprehensively

planned sub-regional centre with provision for retail, entertainment, office and residential activities

– Key provisions of the plan change include:

• Increase in total allowable GFA to 250,000 sqm (currently 71,152 sqm)

• Increase in allowable GFA for retail and entertainment activities to 130,000 sqm

– The successful conclusion of this plan change is an important and necessary step in the long-term strategic planning of the Trust’s most valuable asset

– Targeted growth node by Auckland Council recognised by ‘Principle Centre’ status in planning

Appendix 1 – ASB North Wharf

Wynyard Quarter, Auckland

53

Key project metrics

Total development cost $132.1m

Projected value on completion $140-$150m

Net rental pre-commitment ~93%

Target initial yield ~8.5%

ASB net lettable area 19,466 sqm

ASB initial lease term 18 years

Construction commenced Apr-11

ASB lease commencement Jul-13

Fixed annual rent increases 2.5%

HEAD OFFICE

Construction progress at Dec-11

Appendix 1 – KIP development operations: ASB North Wharf

ASB North Wharf

54


On completion

55


On completion

Appendix 2 – Office market summaries

National Bank, Auckland

57

Appendix 2 – Office market summaries

AUCKLAND1,3 WELLINGTON2, 3

Current Forecast Current Forecast

Supply ~52,000 sqm of new space over 2011/2012

Further 50,000 sqm of new space due to come on stream in 2013. No projects confirmed beyond this horizon

~101,000 sqm of new space over 2011/2012

No projects confirmed beyond 2012

Vacancy Current / (Prior year):1

- Core CBD total 13.1% (13.8%)

- Core Premium 11.2% (6.2%)

- Core A-grade 8.1% (9.8%)

Overall CBD: Vacancy peaked at 13.8% and now recovering, reducing to ~9% by 2015

Core Premium: Vacancy now peaked and expected to strongly improve, reducing to 4% by 2015

Core A-grade: Volatile vacancy expected with vacancies arising from new builds coming on-line

Current / (Prior year):

- Core CBD total 11.3% (9.4%)

- Core Premium 2.1% (2.5%)

- Core B-grade 12.9% 10.5%)

Core CBD: Increasing to a peak of 13.4% during 2012 recovering to 11% by 2015

Core Premium: Forecast to remain at low levels

Core B-grade: Increasing to a peak of 14.8% during 2013 then recovering thereafter

Rents CBD avg net effective:1 Current / (Prior year) - Premium $372/sqm ($360)

- A-grade $234/sqm ($224)

Both Premium and A-grade forecast to increase moderately during 2012 with good growth subsequently as economic conditions and vacancy improve

CBD avg gross effective: Current / (Prior year) - Premium $431/sqm ($420)

- B-grade $254/sqm ($257)

Premium: Moderate growth expected in 2012 then good growth subsequently B-grade: Further falls expected through to 2012 with subsequent strong rebound as vacancy improves

Yields Current / (Prior year) - Premium 7.88% (7.90%)

- A-grade 9.23% (9.43%)

Moderate improvement in investment yields in 2012 for all grades expected to firm strongly over the next four years, Premium by 62bps and A-grade by 80bps

Current / (Prior year) - Premium 8.47% (8.47%)

- B-grade 10.10% (10.03%)

Moderate improvement in investment yields in 2012 for all grades expected to firm strongly over the next four years, Premium by 60bps and B-grade by 33bps

Source:

1 CBRE Auckland Property Market Outlook (December 2011)

2 CBRE Wellington Property Market Outlook (December 2011)

3 All data is expressed in calendar years. “Current” data is the forecast 2011 data. All prior year data is as at December 2010

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For further information please contact:

Mr Chris Gudgeon

Chief Executive

Kiwi Income Properties Limited

Manager of Kiwi Income Property Trust

Phone: +64 9 359 4011 or +64 21 855 907

Email: [email protected]

Mr Gavin Parker

Chief Financial Officer

Kiwi Income Properties Limited

Manager of Kiwi Income Property Trust

Phone: +64 9 359 4012 or +64 21 777 055


Mr Mat Chandler

Investor Relations and Corporate Affairs Manager

Colonial First State Global Asset Management

Phone: +61 2 9303 3484 or +61 407 009 687


Further information

Contact details

mailto:[email protected]



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Disclaimer

Kiwi Income Properties Limited is the manager (the ‘Manager’) of Kiwi Income Property Trust ('KIP'). The Manager is a subsidiary of Commonwealth Bank of Australia (the ‘Bank’) ABN 48 123 123 124. Neither the Bank nor any member of the Bank’s group of companies guarantees or in any way stands behind the performance of KIP or the repayment of capital by KIP. Investments in KIP are not deposits or other liabilities of the Bank or any member of the Bank’s group of companies, and investment-type products are subject to investment risk including possible delays in repayment and loss of income and principal invested.

The information contained in this presentation (the ‘Presentation’) is intended to provide general advice only and does not take into account your individual objectives, financial situation or needs. Some of the information in this Presentation is based on unaudited financial data which may be subject to change. You should assess whether the Presentation is appropriate for you and consider talking to a financial adviser or consultant before making any investment decision.

All reasonable care has been taken in relation to the preparation and collation of the Presentation. None of KIP, the Manager, New Zealand Permanent Trustees Limited (the 'Trustee'), the Bank, any member of the Bank’s group of companies, any of their respective officers, employees, agents or associates, or any other person accepts responsibility for any loss or damage howsoever occurring resulting from the use of or reliance on the Presentation by any person. Past performance is not indicative of future performance and no guarantee of future returns is implied or given.

Caution regarding forward-looking statements

This Presentation includes forward-looking statements regarding future events and the future financial performance of KIP. Any forward-looking statements included in this Presentation involve subjective judgement and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, KIP, the Manager, the Trustee, the Bank, members of the Bank's group of companies, and their respective officers, employees, agents or associates.

Actual results, performance or achievements may vary materially from any forward-looking statements and the assumptions on which those statements are based including, without limitation, in particular because of risks associated with the New Zealand economy which could affect the future performance of KIP’s property portfolio, its ability to obtain funding on acceptable terms, the risks inherent in property ownership and leasing, and KIP's business generally. Given these uncertainties, you are cautioned that this Presentation should not be relied upon as a recommendation or forecast by any of KIP, the Manager, the Trustee, the Bank, any member of the Bank's group of companies, or any of their respective officers, employees, agents or associates. None of KIP, the Manager, the Trustee, the Bank, any member of the Bank's group of companies, or any of their respective officers, employees, agents or associates undertakes any obligation to revise the forward-looking statements included in this Presentation to reflect any future events or circumstances.

Copyright and confidentiality

The copyright of this document and the information contained in it is vested in the Manager, the Bank and the Bank’s group of companies. This document should not be copied, reproduced or redistributed without prior consent.

March 2012

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