GPT Group Annual Report 2020

FY2020 Annual Report · GPT Group

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Annual Report 2020

2020Introduction

Introduction

Welcome to The GPT Group 2020 Annual Report.

The Group has changed its corporate reporting this year to describe how we create value for investors
and other stakeholders. GPT’s Annual Report is prepared with reference to the International Integrated
Reporting Framework to communicate our strategy and our ability to create value over the short, medium
and long term. We also report on our performance and progress in financial, environmental, social and
governance matters.

GPT welcomes feedback from investors and stakeholders on this integrated Annual Report, as we continue to refine and enhance
our corporate reporting.

In this report references to ‘GPT’, ‘Group’, ‘we’, ‘us’ and ‘our’ refer to The GPT Group, unless otherwise stated. Information in this
Annual Report is stated as at 31 December 2020 unless otherwise indicated. References in this report to a ‘year’, ‘2020’ and ‘FY20’ refer
to the financial year ended 31 December 2020 unless otherwise stated. All values are expressed in Australian currency unless otherwise
indicated. Key statistics for the Retail and Office divisions include The GPT Group’s weighted interest in the GPT Wholesale Shopping
Centre Fund (GWSCF) and the GPT Wholesale Office Fund (GWOF) respectively.

Reporting suite
The 2020 Annual Report is the primary document in our reporting suite. It summarises the value created by GPT’s business activities
together with the annual financial report for the Group. Further information is available in our broader reporting suite, which includes:

Results Presentation and Data Pack

Property Compendium

Climate Disclosure Statement

Annual Result 2020

Data Pack

A summary of GPT’s
operating and financial
performance and key
developments in our
business and portfolio,
accompanied by a data
supplement released
every six months.

Consolidated
information about
the assets in the
Group's property
portfolio.

Property Compendium

A statement of the steps
we are taking to identify,
assess and manage
climate change risks and
opportunities, prepared
in accordance with
TCFD recommendations.

Prepared with reference to
the recommendations of the
Task Force on Climate-related
Financial Disclosures
Released February 2021

Climate Disclosure
Statement 2020

Corporate Governance Statement

Tax Transparency Report

Sustainability Report

A statement of how
GPT addresses the ASX
Corporate Governance
Council’s Corporate
Governance Principles
and Recommendations
(4th Edition).

A report in
accordance with
the voluntary Tax
Transparency Code
as part of the Group's
commitment to tax
transparency.

In accordance with the Australian
Board of Taxation Voluntary Tax
Transparency Code.

Tax Transparency
Report 2020

In accordance with the
ASX Corporate Governance Council’s
Corporate Governance Principles
and Recommendations (4th Edition)

Corporate Governance
Statement 2020

A detailed report
of our sustainability
policies, priorities
and progress along
with future targets,
released annually.
(To be released
March 2021.)

Sustainability Report 2020

Cover image: One One One Eagle Street, Brisbane

GPT acknowledges the Traditional Custodians of the lands on which our business and assets operate,
and recognise their ongoing connection to land, waters and community. We pay our respects to
First Nations Elders past, present and emerging.

20202020The GPT Group | Annual Report 2020BUSINESS
OVERVIEW

HOW WE
CREATE VALUE

Contents

01. Overview
02. About GPT

04. Letter to Securityholders

08. Responding to COVID-19

10. Megatrends

12. Our Strategy

28. Performance and Prospects
28. Group Performance

32. Office

33. Logistics

34. Retail

35. Funds Management

67. Financial Statements
68. Consolidated Statement

of Comprehensive Income

69. Consolidated Statement
of Financial Position

70. Consolidated Statement
of Changes in Equity

14. Our Business Model

36. Prospects

16. How We Create Value
18. Growing and predictable earnings

20. Thriving places

22. Empowered people

24. Sustainable environment

26. Prospering customers, suppliers and

communities

38. Risk Management
39. Key risks

42. Climate-related risks

44. Governance
47. Director biographies

50. Directors' Report
52. Remuneration Report

66. Auditor’s Independence Declaration

71. Consolidated Statement of Cash Flows

72. Notes to the Financial Statements

117. Directors' Declaration

118. Independent Auditor’s Report

125. Securityholder Information
126. Investor calendar

127. Corporate directory

Navigating this report
The below icons are used throughout this report to indicate where an activity affects or contributes to how GPT creates value.

Value we create

Growing
and predictable
earnings

Thriving
places

Empowered
people

Sustainable
environment

Prospering
customers, suppliers
and communities

PERFORMANCE AND PROSPECTSRISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020Business Overview

About GPT

GPT is a vertically integrated diversified property group that owns and actively
manages its $24.4 billion portfolio of high quality Australian office, logistics and retail assets.
The Group leverages its real estate management platform to enhance returns through
property development and funds management.

Listed on the Australian Securities
Exchange (ASX) since 1971, today The GPT
Group is a constituent of the S&P/ASX 50
with a substantial investor base of more
than 32,000 securityholders.

Our vision
To be the most respected property
company in Australia in the eyes of
our investors, people, customers and
communities.

Our purpose
To create value for investors by
providing high quality real estate
spaces that enable people to excel and
our customers and communities to
prosper in a sustainable way.

Our values
Each day, our core values guide our
employees as they work to deliver
on our purpose.

Safety First – Everyone, Always
We care about people above
everything else.

Deliver Today, Create Tomorrow
We focus on the present and
the future to deliver consistent,
dependable performance.

Value Differences, Play as a Team
We embrace our diverse
backgrounds, experiences and
perspectives, working together
for the best outcome.

Raise the Bar
We think big, take initiative, share
ideas and challenge the status quo.

Speak Up
We are courageous and speak up
about things that matter.

Portfolio diversity across locations

Darwin, 2%
1 Retail

Melbourne, 38%

11 Office
10 Logistics
5 Retail

South East
Queensland, 10%
2 Office
4 Logistics
1 Retail

NSW, 50%

11 Office
27 Logistics
5 Retail

3,600+

Tenants

32,000+

Securityholders

~500

Employees

~$8.8b

Market capitalisation

The GPT Group | Annual Report 2020
BUSINESS
OVERVIEW

Our portfolio
GPT owns a diversified portfolio of high quality properties across Australia.

Office

» 24 assets

» 1,000,000 sqm NLA

» 360+ tenants 1

Logistics

» 41 assets

» 1,140,000 sqm GLA

» 90+ tenants

Retail

» 12 shopping centres

» 960,000 sqm GLA

» 3,100+ tenants

» $5.6 billion GPT owned portfolio

» $3.0 billion GPT owned portfolio

» $5.5 billion GPT owned portfolio

» $12.9 billion assets under management

» $3.0 billion assets under management

» $8.5 billion assets under management

properties

$24.4b

Assets under management

Portfolio diversity across
asset classes

1. Excludes retail tenants.

50 Old Wallgrove Road, Eastern Creek, NSW

40% Office39% Retail 21% LogisticsHOW WE CREATE VALUEPERFORMANCE AND PROSPECTSRISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020

Business Overview

Letter to Securityholders

This year, the Group has adopted an integrated reporting approach in our Annual Report to communicate
our strategy and ability to create value over the short, medium and long term. This reflects the way the Group
incorporates financial, environmental, social and governance matters in its strategic business decisions.

The effects of the COVID-19 pandemic resulted in a challenging year for the Group. We commenced 2020
with strong momentum and the expectation of delivering earnings and distribution growth. However, the
onset of COVID-19 rapidly changed the operating landscape and we had to adapt our approach swiftly.
The Group responded well to the uncertainty and evolving challenges, maintaining a strong focus on working
with our customers to help them operate successfully and safely through the pandemic, whilst continuing
to execute on strategy and positioning the business to benefit from the emerging economic recovery.

2020 Annual Result
The impacts of COVID-19 have resulted in
both lower net operating income, reflecting
the rent relief provided to our tenants, and
a material reduction in the valuation of our
Retail portfolio.

Notwithstanding the impacts of the
pandemic, the Group delivered Funds
From Operations (FFO) of $554.7 million
for the 12 months to 31 December 2020,
down 9.6 per cent on the prior year.
The Group recorded a statutory net loss
after tax in 2020 of $213.1 million compared
to a statutory net profit after tax of
$880.0 million in 2019. With the additional
securities issued in 2019 as part of the
equity raising, FFO per security decreased
12.9 per cent to 28.48 cents. Net tangible
assets per security was down 4.0 per cent
to $5.57 1 and Total Return for the year
was -2.4 per cent, reflecting the property
valuation decline.

A second half 2020 distribution of
13.2 cents per security was declared on
15 February 2021, resulting in a full year
distribution of 22.5 cents per security.
This is down 15.0 per cent compared
to the 2019 full year distribution of
26.48 cents per security and reflects
the impact of COVID-19 on income and
operating cashflows, and the additional
securities on issue.

GPT's portfolio of high quality Office
assets continued to deliver strong results.
Operating net income was $280.2 million,
up 1.8 per cent on 2019. The portfolio has
a weighted average lease expiry (WALE)
in excess of five years and occupancy
of 94.9 per cent.2 Despite government
restrictions and subdued leasing conditions,
the Group concluded 99,600 square metres
of signed leases across the portfolio, with
an additional 26,500 square metres under
Heads of Agreement. In the second half of
the year, leasing volumes improved, with the
number of Heads of Agreement executed
doubling from the first half of the year.
All Office assets were independently
revalued as at 31 December 2020, resulting
in a valuation decline of 1.2 per cent or
$73.8 million over the year and a weighted
average capitalisation rate (WACR) of
4.89 per cent.

Vickki McFadden
Chairman

The Group divested its interest in
Farrer Place, Sydney in line with the
30 June 2020 book value of $584.6 million
in December 2020.

GPT’s Logistics portfolio delivered
outstanding results in 2020, with operating
net income growth of 15.2 per cent to
$139.3 million, and comparable income
growth of 3.1 per cent. The portfolio has
high occupancy of 99.8 per cent and a long
WALE of 6.7 years. All Logistics assets were
independently revalued 3 as at 31 December
2020, resulting in a valuation uplift of
9.3 per cent or $227.8 million over the year,
attributed to strong investor demand for
high quality logistics assets. The WACR for
the portfolio firmed to 4.84 per cent.

Government restrictions and the
mandatory Code of Conduct in response
to COVID-19, heavily impacted the
performance of shopping centres in 2020.
In addition to the impacts of the Code of
Conduct, the implications of restrictions
imposed in Victoria from July to November
2020, weighed heavily on the Group’s Retail
portfolio performance.

Approximately 400 leasing deals were
completed during the year and Retail
portfolio occupancy was 98.0 per cent at
31 December 2020. A higher level of rental
collection rates in the second half of the
year and the completion of 83 per cent
of COVID-19 rental arrangements,
strengthened the full year financial result
from the portfolio, compared to the first
half. Operating net income for the Retail
portfolio was $220.8 million for the year
down 31.3 per cent, impacted by lower
property income primarily due to rental
assistance provided to our tenants, and
provisions for expected credit losses
in the portfolio.

The GPT Group | Annual Report 2020
BUSINESS
OVERVIEW

Bob Johnston
Chief Executive Officer
and Managing Director

With the exception of Melbourne Central,
which is in the heart of the Melbourne CBD,
there was a strong rebound of customer
visitations to our shopping centres once
restrictions were eased and customers
were able to return back to our assets.
Excluding Melbourne Central, our customer
visitation numbers in December 2020 were
approximately 95 per cent of December
2019 levels. Solid sales growth was evident
following the easing of restrictions,
indicating that people were very keen to
return to shopping centres.

All Retail assets were independently
revalued as at 31 December 2020, resulting
in a revaluation decline of 13.7 per cent
or $866.5 million over the year. The
largest component was the revaluation
of Melbourne Central, one of Australia’s
leading retail destinations, which has
unfortunately been impacted by the
delayed reopening of the Melbourne
CBD and our borders being closed to
international tourists and students.
The WACR for the portfolio softened
to 5.06 per cent.

Our Funds Management business
provides access to third party capital
and continues to deliver growth for
the Group. With $12.9 billion in assets
under management, consisting of the
GPT Wholesale Office Fund (GWOF) and
the GPT Wholesale Shopping Centre Fund
(GWSCF), with assets of $9.0 billion and
$3.9 billion respectively, the platform
has significant scale. Funds Management
earnings of $47.2 million was up 1.9 per cent
on the prior year.

In response to the high level of
uncertainty in the period, the Group
reduced or deferred spending on
non-essential and discretionary items
across the business. Developments
planned at Rouse Hill and Melbourne
Central have been deferred until such time
as market conditions are more favourable,
but remain strategic opportunities for
the Group. In addition, the 2020 Short
Term Incentive Compensation Scheme
and the 2020-2022 Long Term Incentive
Scheme were withdrawn.

The Group maintained a strong balance
sheet position and a prudent approach
to capital management during the year
given the uncertainty of the economic
impact of COVID-19 on our tenants, the
timing of the expected recovery and
the potential impact on asset valuations.
The Board and Management undertook
detailed scenario modelling to ensure the
Group was well placed to navigate through
the unprecedented events. Gearing
as at 31 December 2020 was a modest
23.2 per cent, with $1.8 billion of available
liquidity held in cash and undrawn bank
facilities. The Group maintains strong
A/A2 credit ratings from S&P and
Moody’s respectively.

Executing on strategy to create
long term value
Owning and managing a diversified portfolio
of high quality real estate in Australia’s
largest cities is core to our strategy and
provides us with the opportunity to benefit
from sectors with favourable trends while
reshaping our exposure to others.

Our aim is to deliver growing and
predictable earnings and maximise total
returns for investors over the long term
through the successful execution of
our strategy. The Group leverages its
extensive real estate experience to create
value through disciplined investment,
development, asset management and
funds management.

Portfolio growth in the logistics sector
has been a core strategic focus over the
past three years and the Group has made
strong progress in securing development
and investment opportunities in
this sector. This has resulted in our
Logistics portfolio doubling since 2017
to $3.0 billion, including growth of
$542.5 million or 22 per cent in 2020.

Given the structural tailwinds from
e-commerce and supply chain
transformation, growth in logistics in
high-tenant demand locations will continue
to be an ongoing focus for the Group.
GPT’s Logistics development pipeline has
an estimated end value of approximately
$1 billion.4

1. Includes all right-of-use assets of GPT Group.

2. Excludes assets under or held for development.

3. Excludes assets held for sale and acquired during the second half of the year.

4. Estimated end value on completion of underway and pipeline projects at GPT share.

HOW WE CREATE VALUEPERFORMANCE AND PROSPECTSRISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020Business Overview

Letter to Securityholders (continued)

In February 2021, we announced a capital
partnership with Canadian real estate
firm QuadReal Property Group. The 50:50
joint venture has an objective to acquire
and develop a high quality portfolio of
Australian prime logistics assets, with a
targeted investment of $800 million. GPT
will provide development and management
services to the partnership. This is
consistent with our strategy to grow our
position in the logistics sector and to
expand our Funds Management platform.

In December 2020, GWOF achieved its
carbon neutral operating portfolio target.
Each of GWOF’s operating assets were
independently certified as carbon neutral
using the NABERS verification pathway
of the Australian Government’s Climate
Active for Buildings, in alignment with the
International Greenhouse Gas Protocol.
The Green Building Council of Australia
has recognised this outcome as a first for
a national property portfolio within the
World Green Building Council network.

The sale of the Group's interest in Farrer
Place in Sydney during the year, reinforces
our existing balance sheet capacity and
ensures that we have ample capacity
to grow our exposure to logistics and
to pursue other opportunities that may
emerge in line with our strategic focus.

We also progressed two Office
developments in the period. At 32 Smith,
practical completion was achieved in
January 2021. The asset is 70 per cent
leased including Heads of Agreement
and we expect to make further leasing
progress in 2021 given it is a new landmark
building in the growing Parramatta CBD.
Queen & Collins, Melbourne, being
redeveloped for GWOF, is expected to
reach practical completion in May 2021, and
is currently 20 per cent leased including
Heads of Agreement.

GPT is advancing six Office projects through
planning ahead of the next market cycle,
which are expected to have an end value of
approximately $3.5 billion 5 on completion.

Climate change and sustainability
Recognising the importance of continued
action to address climate change, in
August 2020 GPT announced a target to
achieve carbon neutral operations across
all managed assets by 2024, six years
ahead of our original 2030 target.

GPT recognises the importance of
identifying, managing, and transparently
reporting on climate change risks
and opportunities that could have a
material impact on GPT’s assets and on
the communities in which we operate.
Our second Climate Disclosure Statement
was released in February 2021 and outlines
our progress and priorities in addressing
climate-related risk, in accordance with
the Task Force on Climate-related Financial
Disclosures (TCFD). The statement is
available on GPT’s website.

GPT’s success depends on strong,
productive relationships with our tenants,
customers, supply chain partners, and local
communities. The Group contributes to
the community by acting as a responsible
business in accordance with our
commitments and obligations. We respect
and uphold human rights in line with the
United Nations Guiding Principles on
Business and Human Rights and continue
to take action to enhance transparency
in this area.

During 2020, we released the Group’s
Human Rights Statement, which articulates
our long-standing commitment to
respecting human rights across our
operations and in our engagement with third
parties. Demonstrating this commitment,
GPT’s inaugural Modern Slavery Statement
was released in December 2020 and
articulates the actions we have taken and
propose to take to identify and prevent
modern slavery taking place within our
operations and across our supply chains.

Our ongoing work to promote reconciliation
saw the Group progress or complete
97 per cent of the actions from our Stretch
Reconciliation Action Plan during 2020, as
we offered our communities and our people
the opportunity to explore the culture
and traditions of First Nations people
through our reconciliation commitments
and activities.

Safety at GPT
Safety remains a core value and key priority
for everyone at GPT. This unequivocal
focus on safety extends across our people,
tenants, customers, communities and
supply partners.

In addition to the launch of a new Safety
Procedures Manual during the year
following a business-wide review of our
safety management systems, 97 per cent
of our people participated in a Safety
Leadership Program. The program focused
on the importance of safety and providing
leaders with the skills to lead and influence
behaviours and beliefs that are essential for
a strong safety culture.

This year with the emergence of COVID-19,
GPT participated with key industry bodies
to determine common asset level safety
standards and practices in accordance
with health advice. Additional resources
and funds were also deployed to ensure
we maintained safe environments across
our portfolio and within our premises.

Diversity and inclusion
The Group continued to make progress
towards our diversity and inclusion targets
during 2020, and we were named an
Employer of Choice for Gender Equality
by the Workplace Gender Equality Agency
(WGEA) for the third consecutive year.
GPT was also recognised for the first time
as a Bronze Employer for LGBTIQ+ inclusion
in the Australian Workplace Equality Index
(AWEI) small employer category. The
Group’s CEO continues to be an active
member of the Property Male Champions
of Change which focusses on developing
strategies to improve inclusion and reduce
gender bias.

5. Includes both GPT direct and Funds opportunities.

The GPT Group | Annual Report 2020
BUSINESS
OVERVIEW

Corporate governance and
Board renewal
Good corporate governance is a central
part of GPT’s commitment to our
securityholders. The Board strives to
ensure that GPT meets high standards
of governance across our operations.

The Board is committed to maintaining
a diversity of skills, experience and
attributes amongst its members. The Board
continued our proactive process of Board
succession and renewal during the year,
with the appointment of Robert Whitfield
AM and the retirement of Gene Tilbrook.

Rob Whitfield AM joined the Board
in May 2020 and brings extensive
experience in banking, finance and the
public sector, which will be a valuable
contribution to the Board, enhancing the
Board’s skills and experience. Rob will be
standing for election at the 2021 Annual
General Meeting.

After more than ten years of service,
Gene Tilbrook retired from the Board
at the end of December 2020. During
his tenure, Gene made a substantial
and valuable contribution to the Board,
particularly in his service on and leadership
of the Sustainability and Risk Committee,
and as a member of the Nomination
and the Audit Committee. We thank
Gene for his commitment and valuable
contribution to GPT.

We extend our thanks to the Board for their
efforts in steering the Group through the
unprecedented challenges of 2020, and for
their support and guidance to management
as the demands on their time, experience
and expertise intensified during the year.

2021 outlook
GPT remains well positioned, with a strong
balance sheet, a high quality portfolio,
an experienced management team and
a strategy to create long term value for
securityholders.

Acknowledging there continues to be a
high level of uncertainty in our operating
environment, we are optimistic about the
outlook for 2021. Following the lifting of
COVID-19 restrictions and with the planned
rollout of vaccines gaining momentum,
we expect potential risk of disruption to
operations to reduce over the course of
2021, particularly in the second half.

Favourable economic indicators such as
strong consumer confidence, robust jobs
growth, high household savings rates and
a more buoyant housing market are strong
indicators of a solid economic recovery.

However, the path of the recovery may
be uneven and disrupted by unexpected
events and the differing approaches taken
by each state government. Melbourne’s
CBD in particular is currently lagging in its
recovery when compared to Sydney and
this will have a bearing on the recovery
of assets like Melbourne Central. We have
strong conviction that Melbourne
Central will recover and once again be
a key destination.

Due to the uncertain operating conditions,
we are not providing earnings and
distribution guidance for 2021 at this
time. We will continue to monitor trading
conditions, and currently expect to provide
2021 earnings and distribution guidance
with the release of our March 2021 Quarter
Operational Update.

On behalf of the Board and management,
we extend our thanks to our employees
for their commitment, hard work and
resilience during this challenging year.

Finally, we thank our investors for their
continued support of GPT.

Vickki McFadden
Chairman

Bob Johnston
Chief Executive Officer
and Managing Director

32 Smith, Parramatta, NSW
(Artist's impression)

HOW WE CREATE VALUEPERFORMANCE AND PROSPECTSRISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020Business Overview

Our financial position
Given the effect of government measures
and the uncertainty of the duration of
the pandemic, we withdrew guidance for
2020 Funds From Operations (FFO) and
distributions on 19 March.

GPT has remained in a strong financial
position throughout the year, with prudent
gearing, limited near term debt maturities
and significant available liquidity. The Group
maintains A/A2 credit ratings from S&P and
Moody’s respectively. Our strong financial
position has allowed the Group to continue
to progress our strategic priorities
while providing the flexibility to manage
through the current challenging operating
environment.

We increased the frequency of asset
valuations to provide investors with an
independent assessment of the immediate
and longer term effect of the pandemic on
the value of our assets. Our directly owned
retail assets were valued at the end of
May and all investment assets were valued
at the end of June and again at the end
of December as the pandemic’s effects
became more apparent.

The Group reduced or deferred spending
on non-essential and discretionary items
across the business. In addition, the 2020
Short Term Incentive Compensation
scheme and the 2020 – 2022 Long
Term Incentive scheme were withdrawn.
In April, we deferred the commencement
of the Rouse Hill Town Centre retail
expansion and the Melbourne Central
office and retail development until such
time as market conditions are more
supportive. These initiatives have helped to
ensure that we remain in a strong financial
position and are well-positioned for the
post-pandemic recovery.

In June GPT announced that as a result
of the uncertainty created by the effects
of the COVID-19 pandemic and the
application of the mandatory Code of
Conduct, the Group adjusted the timing
of the declaration of its distributions to
coincide with the release of the Group’s
financial results in February and August
each year. In addition, the Group amended
its distribution payout policy to align with
free cashflow.

Category

Performance measure

Achievement Commentary

Safety and
People

Develop Safety Leadership
Program and ensure
more than 75 per cent
of employees undertake
training in 2020

Culture Dashboard tracking
at or above target

Progressing diversity and
inclusion objectives including
achievement of 40:40:20
gender balance at all levels
of the organisation, and
First Nations representation
among employees at
2.2 per cent

Financial

FFO and distribution growth
per security target of at least
3.5 per cent

» Safety Leadership program launched and the target for completion
of Safety Leadership training was exceeded with 97 per cent of
employees having completed this by year end.

» Indicators on the Culture Dashboard are tracking at or above our

target position.

» Pulse surveys of employees indicated that 86% agreed that the

measures GPT had put in place to support them during the pandemic
had helped them to navigate through this period more easily than may
have otherwise been the case.

» 40:40:20 gender balance was achieved at the Board and among the
overall Management and Professional cohorts. GPT also received
its third consecutive Workplace Gender Equality Agency (WGEA)
Employer of Choice for Gender Equality citation in February 2020, and
increased the percentage of females in the top quartile from 46 per
cent in 2019 to 48 per cent in 2020. The Group was also recognised as
a Bronze employer for LGBTIQ+ inclusion in the Australian Workplace
Equality Index Small Employer category. Regrettably, our ability to
enhance First Nations representation was impacted by the deferral of
recruitment in response to pandemic.

» Prior to March, GPT was well placed to achieve its FFO growth target.

Management responded to the economic disruption created by
COVID-19 by immediately implementing measures to reduce operating
costs, defer all unnecessary expenditure and recruitment.

» Negotiations with tenants regarding rental relief in accordance with
the commercial tenancies Code of Conduct became a primary area
of focus, as well as the implementation of a customer engagement
plan for a successful COVID safe return to our assets. Throughout the
period, prudent gearing and significant liquidity was maintained and
limited near term debt maturities achieved.

KEY

Stretch

Between Target and Stretch

Target

Between Threshold and Target

Threshold

Below threshold

BUSINESS OVERVIEWPERFORMANCE AND PROSPECTSFINANCIAL STATEMENTSThe GPT Group | Annual Report 2020DIRECTORS' REPORTRISK MANAGEMENTGOVERNANCESECURITYHOLDER INFORMATIONHOW WE CREATE VALUE
Category

Performance measure

Achievement Commentary

Strategy

Portfolio occupancy greater
than 96.5% at year end

Achieved 98.4 per cent occupancy for combined Retail, Office and
Logistics portfolio.

Increase the Group’s
exposure to the Logistics
sector through appropriate
acquisitions and
developments

Practical completion of
32 Smith, Parramatta and
Queen & Collins Office
developments in line with
development targets

Secure a new capital
partnership

Raise at least $300 million of
new equity for GWOF

Achieve carbon neutral
certification for GWOF
portfolio. Implement strategy
for GPT managed portfolio
to achieve Carbon Neutral
status by 2024

Reduction in operational
emissions, energy, waste and
water consumption. Increase
recycling level of waste

Develop and publish the
Group’s first Modern Slavery
Policy by Dec 2020

Achieve 2020 commitments
in the Group’s Stretch
Reconciliation Plan (2018-21)

Environment
and Social
Responsibility

Four logistics developments were completed in the period and
successfully leased. A further four logistics developments were
commenced or committed to and $205 million of logistics assets
were acquired.

Both developments were delayed as a result of COVID-19
disruptions. 32 Smith achieved practical completion in January 2021
and Queen & Collins is expected to achieve practical completion in
the first half of 2021.

Secured an $800 million Logistics capital partnership with QuadReal.

Completed capital raising securing $289 million of $300 million target
for GWOF. This result was considered a success in the context of the
prevailing market conditions.

GWOF portfolio certified as carbon neutral in 2020. Strategy approved
for GPT managed portfolio to reach this target by 2024.

Targets to reduce emissions, energy and water consumption and
increase waste recycling achieved.

Modern Slavery Statement published and initiatives to demonstrate
ongoing progress identified.

97.0 per cent of RAP action items were progressed or completed during
the year, including:

» Launch of First Nations Engagement Strategy;

» More than 60 per cent participation rate in voluntary employee online

learning module;

» All active development projects included First Nations consultation;

and

» NAIDOC and National Reconciliation week campaigns held at each GPT

Retail and Office asset.

KEY

Stretch

Between Target and Stretch

Target

Between Threshold and Target

Threshold

Below threshold

Remuneration ReportThe GPT Group | Annual Report 2020 Directors’ Report

3. 2020 STIC outcomes by Executive KMP
The 2020 STIC outcomes for the KMP are below. STIC outcomes for the balance of the eligible employees 1 are ordinarily
determined in March post the issue of the Remuneration Report however no awards will be made to any employee in respect
of the 2020 performance period.

Executive KMP

Position

Bob Johnston

Chief Executive Officer
and Managing Director

Anastasia Clarke

Chief Financial Officer

Mark Fookes

Chief Operating Officer

Actual STIC
awarded

Actual STIC
awarded as a
% of maximum
STIC

% of
maximum
STIC award
forfeited

100%

Cash
component

Equity
component
(# of GPT
securities) 2

1. i.e. excluding the KMP.
2. Had the 2020 STIC plan been operative the number of deferred GPT securities granted would be calculated by dividing 50% of the Actual STIC awarded by GPT’s 30-day VWAP

of $4.6576 immediately before the end of the performance period and vested subject to service on 31 December 2021.

4. Group performance measures for LTI Plans currently relevant

LTI performance
measurement
period

Performance
measure

LTI

Performance
measure hurdle

2018

2018-20

Relative TSR versus
ASX200 AREIT
Accumulation Index
(including GPT)

– 10% of PR vest at Index
performance, up to 100% at
Index plus 10% (pro-rata vesting
in between)

Total Return

10% of PR vest at 8.5% Total
Return, up to 100% at 10.0%
Total Return (pro-rata vesting
in between)

2019

2019-21

Relative TSR versus
ASX200 AREIT
Accumulation Index
(including GPT)

10% of PR vest at Index
performance, up to 100% at
Index plus 10% (pro-rata vesting
in between)

Total Return

10% of PR vest at 8.5% Total
Return, up to 100% at 10.0%
Total Return (pro-rata vesting
in between)

2020 2020-22

Relative TSR versus
ASX200 AREIT
Accumulation Index
(including GPT)

10% of PR vest at Index
performance, up to 100% at
Index plus 10% (pro-rata vesting
in between)

Total Return

10% of PR vest at 7.5% Total
Return, up to 100% at 9.0%
Total Return (pro-rata vesting
in between)

Weighting

Results

Vesting % by
performance
measure

Overall
Plan Vesting
Outcome
%

50%

TSR result
was beneath
the Index by
19.11%

Compound
TR result
of 7.10% is
beneath
threshold

50%

N/A

50%

N/A

—

N/A

50%

2020-22 LTI withdrawn

5. 2018-2020 LTI outcomes by Executive KMP

Senior Executive

Position

Bob Johnston

Chief Executive Officer and Managing Director

Anastasia Clarke

Chief Financial Officer

Mark Fookes

Chief Operating Officer

Performance
rights granted

Performance
rights vested

Performance
rights lapsed

420,467

153,595

157,435

—

420,467

153,595

157,435

Executive KMP

Bob Johnston Chief Executive
Officer & Managing Director

Anastasia Clarke
Chief Financial Officer

Mark Fookes
Chief Operating Officer

Plan

2020
2019

Grant date

—
24 May 2019

—
2 April 2019

Fair value per
performance right 2

Performance
rights granted
as at 31 Dec 20

—
$3.18

—
$3.94

—
413,551

—
160,511

—
156,734

Maximum value to
be recognised in
future years

—
$118,759

—
$72,008

—
$70,313

Vesting date

—
31 Dec 21

1. For the avoidance of doubt, the GPT incentive plans (i.e. STIC and LTI) use face value grants of performance rights based on the VWAP of GPT securities for specified periods;

reference to fair value per performance right is included in this table to comply with accounting standards.

2. Reflects fair value per performance right as at the grant date.

7. Reported remuneration – Executive KMP – Actual Amounts Received 1

Fixed Pay

Variable or "at risk" 2

Executive KMP

Bob Johnston Chief Executive
Officer & Managing Director

Anastasia Clarke
Chief Financial Officer

Mark Fookes
Chief Operating Officer

Total

Plan

2020
2019

Base Pay Superannuation

$1,438,709
$1,439,233

$853,709
$829,233

$818,709
$809,233

$3,111,127
$3,077,699

$21,348
$20,767

$64,044
$62,301

Other 3

$7,061
$8,455

$3,840
$4,985

$7,279
$10,050

$18,180
$23,490

STIC

LTI

Total

$0
$1,314,232

$0
$1,556,288

$0
$683,828

$0
$651,774

$0
$542,260

$0
$592,872

$0
$2,649,834

$0
$2,691,420

$1,467,118
$4,338,975

$878,897
$2,081,073

$847,336
$2,084,696

$3,193,351
$8,504,744

1. This table discloses the cash and other benefit amounts actually received by GPT’s executive KMP, as distinct from the accounting expense. As a result, it does not align to

Australian Accounting Standards.

2. Gross dollar values for the equity components have been calculated by multiplying the number of securities by GPT's 2019 VWAP ($6.0209). Future awards under this plan will be

calculated with reference to the 30-day VWAP immediately before the end of the relevant performance period.

3. Other may include death and total/permanent disability insurance premiums, service awards, GPT superannuation plan administration fees, professional memberships,

subscriptions and/or other benefits.

8. Reported remuneration – Executive KMP – AIFRS Accounting 1

Executive KMP

Bob Johnston Chief Executive
Officer & Managing Director

Anastasia Clarke
Chief Financial Officer

Mark Fookes
Chief Operating Officer

Total

Fixed Pay

Variable or "at risk"2

Plan

2020

2019

2020
2019

2020

2019

Base Pay Superannuation

$1,468,141

$1,418,885

$867,590

$860,899

$852,887

$827,474

$3,188,618

$3,107,258

$21,348

$20,767

$21,348

$20,767

$21,348

$20,767

$64,044

$62,301

Other

$7,061

$8,455

$3,840

$4,985

$7,279

$10,050

STIC

LTI

Total

$338,592

$189,658

$2,024,800

$1,302,460

$1,038,467

$3,789,034

$161,843

$104,161

$1,158,782

$658,420

$405,098

$1,950,169

$154,255

$636,642

$103,261

$419,781

$1,139,030

$1,914,714

$18,180

$654,690

$397,080

$4,322,612

$23,490

$2,597,522

$1,863,346

$7,653,917

1. This table provides a breakdown of remuneration for executive KMP in accordance with statutory requirements and Australian accounting standards.
2. This column records the amount of the fair value of the awards under the various STIC and LTI plans expensed in the relevant financial years, and does not represent actual awards

made to executives or the face value grant method.

Remuneration ReportThe GPT Group | Annual Report 2020 Directors’ Report9. GPT security ownership – Executive KMP as at 31 December 2020

Executive KMP

(start of period) 1

GPT
Holdings

Employee Security Schemes (ESS)

2020
DSTIC

2018-20
LTI

Total ESS
for 2020

Purchase/

(Sales)
during period 2

GPT
Holdings
(end of period) 3

Gross
Value of
GPT

Holdings 4

MSHR
Guideline 5

Bob Johnston
Chief Executive Officer
and Managing Director

Anastasia Clarke
Chief Financial Officer

Mark Fookes
Chief Operating Officer

1,689,078

389,581

1,222,362

Nil

1,689,078

$7,867,050

$2,190,000

(154,153)

235,428

$1,096,529

$875,000

Nil

1,222,362

$5,693,273

$840,000

1. GPT Holdings (start of period) include GPT securities obtained as sign on grants (Mr Johnston only), DSTIC up to and including 2019, LTI plans up to and including the 2017-19 LTI plan

and private holdings.

2. Movement in GPT security holdings as a result of the sale of vested, unrestricted security holdings and/or the sale or purchase of additional private holdings on the individuals own

account during the 2020 calendar year.

3. GPT Holdings (end of period) is the sum of GPT Holdings (start of the period) plus DSTIC and LTI securities obtained under ESS and adjusted for any purchases or sales during the
period. Note that some of the securities do not become actual holdings for the individual until after the conclusion of the performance year when Group results are known which
allow the conversion of performance rights under the various plan terms.

4. The GPT Holdings (end of period) multiplied by GPT’s December 2020 30-day VWAP of $4.6576 to derive a dollar value.
5. GPT’s Minimum Security Holding Requirement (MSHR) guideline requires the CEO to acquire and maintain a holding equal to 150% of base salary. For other KMP and Leadership

Team members the holding requirement is equal to 100% of base salary. Individuals have four years from commencement of employment to achieve the MSHR before it is assessed
for the first time.

10. GPT performance rights – Executive KMP

Executive KMP

Bob Johnston
Chief Executive Officer
and Managing Director

Anastasia Clarke
Chief Financial Officer

Mark Fookes
Chief Operating Officer

Performance rights

Performance rights
that lapsed in 2020 1

Performance rights
still on foot at 31 Dec 20 2

420,467

153,595

157,435

413,551

160,511

156,734

1. The sum of performance rights that were awarded to a participant in the 2018-2020 LTI that did not vest at the end of the performance period, and as a result, lapsed and/or

performance rights that may have been granted under the 2020 DSTIC that also lapsed had that plan been operative.

2. The total of unvested performance rights currently on foot excluding any GPT securities or performance rights that may have lapsed up to 31 December 2020. This represents the
current maximum number of additional GPT securities to which the individual may become entitled subject to satisfying the applicable performance measures in the 2019-2021 LTI
plan on foot. plan. As such, these performance rights represent the incentive opportunity over future years, are subject to performance and hence “at risk”, and as a result, may
never vest.

BUSINESS OVERVIEWPERFORMANCE AND PROSPECTSFINANCIAL STATEMENTSThe GPT Group | Annual Report 2020DIRECTORS' REPORTRISK MANAGEMENTGOVERNANCESECURITYHOLDER INFORMATIONHOW WE CREATE VALUE

GOVERNANCE

Who are the
members
of the Committee?

What is the scope
of work of the
Committee?

The Committee consists of the following four Non-Executive Directors:

» Tracey Horton AO (HRRC Chairman)

» Vickki McFadden

» Angus McNaughton

» Mark Menhinnitt

The Committee operates in accordance with the HRRC Charter and undertakes the following activities on behalf of
the Board:

» Oversee the management of culture

» Consider and recommend any changes to the remuneration framework to the Board for approval

» Oversee the implementation of key policies and practices in support of GPT’s remuneration framework and from

time to time, review their appropriateness

» Periodically review and make recommendations to the Board for approval in relation to the remuneration for

Non-Executive Directors

» Review annually and make recommendations to the Board for approval in relation to the remuneration package
for the CEO and any other executive Director. In consultation with the CEO, review and approve remuneration
packages for the Leadership Team (excluding the CEO) and approve the annual salary review budget for all other
employees

» Recommend to the Board for approval the key performance indicators for the CEO and having regard to the
performance assessment undertaken by the Chairman of the Board, recommend to the Board incentive plan
outcomes for the CEO to the Board for approval

» Review the annual Remuneration Report and make recommendations to the Board for its inclusion in the

Annual Report

» Review and monitor the succession plan for the Leadership Team (excluding the CEO, which is a responsibility

of the Nomination Committee 1)

» Review and approve GPT’s diversity & inclusion strategy, and oversee the implementation of key processes

and procedures in support of this and report progress to the Board

» Monitor and oversee talent development and employee engagement initiatives, and oversee the implementation

of processes and procedures to support the implementation of those initiatives.

1. The full Board are members of the Nomination Committee and no additional fees are paid for membership. Further information about the role and responsibility of committees is

set out in their respective Charters, which are available on GPT’s website: www.gpt.com.au.

REMUNERATION – NON-EXECUTIVE DIRECTORS

What are the
key elements
of the
Non-Executive
Director
Remuneration
Policy?

» The Board determines the remuneration structure for Non-Executive Directors based on recommendations from

the Human Resources and Remuneration Committee.

» Non-Executive Directors are paid one fee for participation as a Director in all GPT related companies (principally

GPT RE Limited, the Responsible Entity of General Property Trust and GPT Management Holdings Limited).

» Non-Executive Director remuneration is composed of three main elements:

› Main Board fees

› Committee fees, and

› Superannuation contributions at the statutory superannuation guarantee contribution rate.

» Non-Executive Directors do not participate in any short or long term incentive arrangements and are not entitled

to any retirement benefits other than compulsory superannuation.

» Non-Executive Directors are subject to the Group’s Minimum Security Holding Policy as detailed on page 66 of

this Report.

» Non-Executive Director remuneration is set by reference to comparable entities listed on the ASX (having regard

to GPT’s industry sector and market capitalisation).

» External independent advice on remuneration levels for Non-Executive Directors is sought annually. In the event

that a review results in changes, the new Board and Committee fees are effective from
1 January in the applicable year and advised in the ensuing Remuneration Report.

» Fees (including superannuation) paid to Non-Executive Directors are subject to an aggregate limit of $1,800,000
per annum, which was approved by GPT securityholders at the Annual General Meeting on 5 May 2015. As an
Executive Director, Mr Johnston does not receive fees from this pool as he is remunerated as one of GPT’s senior
executives.

Remuneration ReportThe GPT Group | Annual Report 2020 Directors’ Report1. Board and committee fees1,2

Chairman

Members

2020
2019

Board Fee

$450,000
$430,000

$170,000
$170,000

Audit
Committee

$40,000
$40,000

$20,000
$20,000

Sustainability and
Risk Committee

Human Resources and
Remuneration Committee

$34,000
$34,000

$17,000
$17,000

$34,000
$34,000

$17,000
$17,000

In addition to the fees noted in the table, all Non-Executive Directors receive reimbursement for reasonable travel, accommodation and other expenses incurred while undertaking
GPT business.

2. Fees for Non-Executive Directors are inclusive of superannuation.

2. Reported remuneration – Non-Executive Directors – AIFRS accounting 1,2

Fixed Pay

Non-Executive Director - Current

Fees

Superannuation

Other 3

Vickki McFadden
Chairman

Tracey Horton AO 4

Mark Menhinnitt 5

Angus McNaughton

Michelle Somerville

Gene Tilbrook

Robert Whitfield AM 6

2020
2019

$428,652
$409,233

$201,826
$132,695

$184,453
$38,813

$189,041
$192,124

$207,306
$207,306

$204,566
$197,750

$97,729
—

$21,348
$20,767

$19,173
$12,606

$17,523
$3,687

$17,959
$18,252

$19,694
$19,694

$19,434
$18,786

$9,284
—

Non-Executive Director – Former

Fees

Superannuation

Fixed Pay

Swe Guan Lim 8

Eileen Doyle 9

Total

2020
2019

—
$189,041

—
$76,843

$1,513,573
$1,433,805

—
$17,959

—
$7,300

$124,415
$119,051

—
—

$859
$1,377

—
—

Other 7

—
$507

—
—

$859
$1,884

1. This table provides a breakdown of remuneration for Non-Executive Directors in accordance with statutory requirements and Australian accounting standards.
2. No termination benefits were paid during the financial year.
3. Other may include death and total/permanent disability insurance premiums and/or GPT superannuation plan administration fees.
4. Ms Horton joined GPT on 1 May 2019, and was appointed Chairman of the Human Resources and Remuneration Committee from 16 May 2019.
5. Mr Menhinnitt joined GPT on 1 October 2019.
6. Mr Whitfield joined GPT on 14 May 2020.
7. See Footnote 3, above.
8. Mr Lim retired from the GPT Board on 31 December 2019.
9. Ms Doyle retired from the GPT Board on 15 May 2019.

Total

$450,000
$430,000

$220,999
$145,301

$201,976
$42,500

$207,000
$210,376

$227,000
$227,000

$224,859
$217,913

$107,013
—

Total

—
$207,507

—
$84,143

$1,638,847
$1,564,740

Non-Executive Director

Vickki McFadden

Tracey Horton AO

Angus McNaughton

Mark Menhinnitt

Michelle Somerville

Gene Tilbrook

Robert Whitfield AM 3

Private holdings (# of securities)

Minimum security holding requirement (MSHR)

Balance
31 Dec 19

Purchase
/(Sale)

Balance
31 Dec 20

MSHR
assessment 1

MSHR
guideline 2

MSHR
assessment date

52,525

60,000

112,525

$527,976

$450,000

7,525

8,196

15,000

36,663

51,071

—

15,000

16,892

15,000

—

March 2022

May 2023

22,525

25,088

$121,358

$170,000

$149,898

$170,000

November 2022

30,000

$164,475

$170,000

October 2023

36,663

51,071

—

$179,936

$170,000

December 2020

$237,868

$170,000

—

$170,000

May 2020

May 2024

1. The MSHR is assessed by the higher of cost or the current market value (derived by multiplying the number of holdings at the end of the period by GPT's December 2020 30-day

VWAP of $4.6576).

2. The MSHR for Non-Executive Directors is equal to 100% of base fees. Individuals have four years from commencement of employment to achieve the MSHR before it is assessed for

the first time.

3. Mr Whitfield was appointed to the Board in May 2020.

REMUNERATION ADVISORS

During the year, advisors did not provide any remuneration recommendations in relation to KMPs, as defined in Section 9B of the
Corporations Act 2001.

CLAWBACK AND MALUS
GPT’s Clawback Policy provides the Board with the discretion to modify remuneration outcomes as a result of adverse circumstances
that arise or become known after remuneration has been granted, paid or vested. Individuals who participate in the STIC and LTI are
subject to these awards being adjusted, cancelled or clawed back if a trigger event occurs. No trigger events occurred in 2020, and the
Board did not enact the Clawback Policy during the reporting period.

MINIMUM SECURITY HOLDING REQUIREMENT
GPT’s Minimum Security Holding Policy requires Non-Executive Directors, the CEO, other KMPs and members of the Leadership Team
to build (initially over four years from appointment) and maintain a minimum holding of GPT securities. The guideline requires the CEO
to maintain a holding equal to 150% of base salary. For Non-Executive Directors, other KMP and Leadership Team members, the MSHR is
equal to 100% of base salary or fees.

Remuneration ReportThe GPT Group | Annual Report 2020 Directors’ Report

The Directors’ Report, including the Remuneration Report, is signed in accordance with a resolution of the Directors of the GPT Group.

Vickki McFadden
Chairman

Sydney
15 February 2021

Bob Johnston
Chief Executive Officer
and Managing Director

Sydney
15 February 2021

Auditor's Declaration

Auditor’s Independence Declaration
As lead auditor for the audit of General Property Trust for the year ended 31 December 2020, I declare
that to the best of my knowledge and belief, there have been:

(a)

no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and

(b)

no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of General Property Trust and the entities it controlled during the period.

Susan Horlin
Partner
PricewaterhouseCoopers

Sydney
15 February 2021

PricewaterhouseCoopers, ABN 52 780 433 757
One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au
Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124
T: +61 2 9659 2476, F: +61 2 8266 9999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

The GPT Group | Annual Report 2020Financial
Statements

Contents

FINANCIAL STATEMENTS

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

NOTES TO THE FINANCIAL STATEMENTS
RESULT FOR THE YEAR
1. Segment information

OPERATING ASSETS AND LIABILITIES
2. Investment properties

3. Equity accounted investments

4. Trade and other receivables

5. Intangible assets

6. Inventories

7. Payables

8. Provisions

9. Taxation

CAPITAL STRUCTURE
10. Equity and reserves

11 Earnings per stapled security

12. Distributions paid and payable

13. Borrowings

14. Financial risk management

15. Other fair value disclosures

OTHER DISCLOSURE ITEMS
16. Cash flow information

17. Lease revenue

18. Commitments

19. Contingent liabilities

20. Security based payments

21. Related party transactions

22. Auditor’s remuneration

23. Parent entity financial information

24. Accounting policies

25. Events subsequent to reporting date

DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT

68
69
70
71

72
72

77
77
86
89
90
91
92
92
93

95
95
97
98
98
100
105

105
105
106
107
107
107
109
110
110
111
116

117
118

Year ended 31 December 2020

Financial Statements

Revenue
Rent from investment properties
Property and fund management fees
Development revenue
Development management fees

Fair value adjustments and other income
Fair value (loss)/gain on investment properties
Share of after tax (loss)/profit of equity accounted investments
Interest revenue
Gain on financial liability at amortised cost
Net foreign exchange gain

Total revenue, fair value adjustments and other income

Expenses
Property expenses and outgoings
Management and other administration costs
Development costs

Depreciation expense

Amortisation and impairment of software
Other amortisation expense
Other impairment expense/(reversal)
Impairment loss on trade and other receivables
Finance costs
Net loss on fair value movements of derivatives
Net impact of foreign currency borrowings and associated hedging loss

Total expenses

(Loss)/profit before income tax expense

Income tax expense

Net (loss)/profit for the year

Other comprehensive income
Items that may be reclassified to profit or loss, net of tax
Movement in hedging reserve
Movement in fair value of cash flow hedges

Total other comprehensive income

Note

14(b)

9(a)

10(c)
10(c)

31 Dec 20
$M

31 Dec 19
$M

625.8
83.5
1.2
6.2

716.7

(365.6)
(99.4)
1.1
2.1
0.4

(461.4)

255.3

157.8
63.3
1.0

3.5

7.4
0.1
3.4
62.4
105.7
39.6
15.1

459.3

(204.0)

9.1

(213.1)

(22.4)
(1.7)

(24.1)

653.8
89.0
58.6
5.6

807.0

310.8
266.3
1.5
2.5
—

581.1

1,388.1

170.2
81.7
52.8

1.9

4.9
0.1
(12.1)
0.9
110.7
74.4
10.8

496.3

891.8

11.8

880.0

(6.3)
16.3

10.0

Total comprehensive (loss)/income for the year

(237.2)

890.0

Net (loss)/profit attributable to:
» Securityholders of the Trust
» Securityholders of other entities stapled to the Trust

Total comprehensive (loss)/income attributable to:
» Securityholders of the Trust
» Securityholders of other entities stapled to the Trust

(240.1)
27.0

(264.2)
27.0

850.4
29.6

860.4
29.6

Basic earnings per unit attributable to ordinary securityholders of the Trust
Earnings per unit (cents per unit) – (loss)/profit from continuing operations

11(a)

(12.3)

45.3

Basic earnings per stapled security attributable to ordinary stapled securityholders of the GPT Group
Earnings per stapled security (cents per stapled security) – (loss)/profit from continuing operations

11(b)

(10.9)

46.9

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

The GPT Group | Annual Report 2020Consolidated Statement of Financial Position

As at 31 December 2020

Assets
Current assets
Cash and cash equivalents
Trade receivables
Other receivables
Inventories
Derivative assets
Prepayments
Other assets
Current tax assets

Assets classified as held for sale – investment properties

Total current assets

Non-current assets
Investment properties
Equity accounted investments
Intangible assets
Inventories
Property, plant and equipment
Derivative assets
Right-of-use assets
Deferred tax assets
Other assets

Total non‑current assets

Total assets

Liabilities
Current liabilities
Payables
Borrowings
Derivative liabilities
Lease liabilities – other property leases
Provisions
Current tax liabilities

Total current liabilities

Non-current liabilities
Borrowings
Derivative liabilities
Lease liabilities – investment properties
Lease liabilities – other property leases
Provisions

Total non‑current liabilities

Total liabilities

Net assets

Equity
Securityholders of the Trust (parent entity)
Contributed equity
Reserves
Retained earnings

Total equity of the Trust securityholders

Securityholders of other entities stapled to the Trust
Contributed equity
Reserves
Accumulated losses

Total equity of other stapled securityholders

Total equity

Note

31 Dec 20
$M

31 Dec 19
$M

4(a)
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—

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108.5

699.9

10,323.6
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4,543.0
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456.4
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4,541.2

11,326.6

8,673.2
(47.6)
2,700.9

8,673.2
(23.5)
3,123.5

11,326.5

11,773.2

332.0
19.6
(788.9)

(437.3)

332.0
37.3
(815.9)

(446.6)

10,889.2

11,326.6

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

Year ended 31 December 2020

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Financial StatementsThe GPT Group | Annual Report 2020

Consolidated Statement of Cash Flows

Year ended 31 December 2020

Note

31 Dec 20
$M

31 Dec 19
$M

Cash flows from operating activities
Receipts in the course of operations (inclusive of GST)
Payments in the course of operations (inclusive of GST)
Proceeds from sale of inventories
Payments for inventories
Distributions received from equity accounted investments
Interest received
Income taxes refunded/(paid)
Finance costs paid

Net cash inflows from operating activities

16(a)

Cash flows from investing activities
Payments for acquisition of investment properties
Payments for operating capital expenditure on investment properties
Payments for development capital expenditure on investment properties
Proceeds from disposal of investment properties (net of transaction costs)
Payments for property, plant and equipment
Payments for intangibles
Investment in equity accounted investments
Proceeds from disposal of equity accounted investments

Net cash inflows/(outflows) from investing activities

Cash flows from financing activities
Proceeds from issue of stapled securities (net of transaction costs)
Proceeds from borrowings
Repayment of borrowings
Repayment of principal elements of lease payments
Payment for termination and restructure of derivatives
Distributions paid to securityholders

Net cash outflows from financing activities

Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

716.9
(279.1)
1.2
(10.0)
159.5
1.3
1.3
(100.9)

490.2

(245.7)
(60.6)
(265.6)
61.8
(3.6)
(14.5)
(9.2)
583.9

46.5

—
2,417.9
(2,201.7)
(6.8)
(36.2)
(441.6)

(268.4)

268.3
104.2

372.5

820.0
(289.4)
58.6
(21.0)
168.4
1.4
(10.2)
(113.2)

614.6

(280.7)
(89.6)
(284.0)
796.3
(1.0)
(13.5)
(540.8)
—

(413.3)

853.6
2,701.7
(3,081.9)
(6.2)
(137.2)
(485.8)

(155.8)

45.5
58.7

104.2

Year ended 31 December 2020

These are the consolidated financial statements of the
consolidated entity, GPT Group (GPT or the Group), which
consists of General Property Trust (the Trust), GPT Management
Holdings Limited (the Company) and their controlled entities.

The notes to these financial statements have been organised
into sections to help users find and understand the information
they need to know. Additional information has also been provided
where it is helpful to understand GPT’s performance.

The notes to the financial statements are organised into the
following sections:

Note 1 – RESULT FOR THE YEAR: focuses on results and
performance of GPT.

Notes 2 to 9 – OPERATING ASSETS AND LIABILITIES: provides
information on the assets and liabilities used to generate
GPT’s trading performance.

Notes 10 to 15 – CAPITAL STRUCTURE: outlines how GPT
manages its capital structure and various financial risks.

Notes 16 to 25 – OTHER DISCLOSURE ITEMS: provides information
on other items that must be disclosed to comply with Australian
Accounting Standards and other regulatory pronouncements.

Key judgements, estimates and assumptions
In applying GPT’s accounting policies, management has made
a number of judgements, estimates and assumptions regarding
future events.

The COVID-19 pandemic has created heightened levels of
economic uncertainty, resulting in management’s judgements
and estimates having a greater impact on the result for the period
than would normally be the case.

GPT has assessed key judgements and estimates in light of
COVID-19 and adjusted underlying assumptions accordingly.

Management has made key assumptions relating to the levels of
debt forgiveness (rent waivers) to be provided to tenants (including
both SME tenants as defined by the commercial tenancy Code of
Conduct, and other impacted tenants). While steady progress has
been made in finalising leasing deals under the Code of Conduct,
there are still a number of deals that remain unresolved. Therefore,
management has used their judgement to determine estimated
amounts of rent waivers for the year to 31 December 2020.
These have been reflected as a write-off of trade receivables.
For remaining uncollected trade receivables at 31 December 2020,
management has assessed that there is an increased level of
risk associated with the collection of these balances due to the
financial impacts of the pandemic on tenants. Management has
therefore made material judgements in relation to the likelihood
of collecting these amounts, which have been reflected in the
estimated credit loss allowance for trade receivables. See note 4.

Future uncertainty caused by COVID-19 has also impacted
estimates of future investment property income and investment
property prices, resulting in significant impacts to the valuations
of some investment properties. GPT has had all investment
properties independently valued by expert valuers who have
included estimates of the impacts of COVID-19 in the valuations,
both in the short term and any consequential impacts to
the medium and long term on general market conditions.
Management has reviewed the investment property valuations for
both accuracy and the reasonableness of the assumptions used
to determine fair value. A sensitivity analysis has been included in
note 2(d), showing indicative movements in investment property
valuations should certain key metrics differ from those assumed in
the valuations.

The following judgements, estimates and assumptions have the
potential to have a material impact on the financial statements:

Area of judgements and estimates

Assumptions underlying

Lease liabilities
Investment properties*
Trade receivables*
Management rights
IT development and software
Inventories
Deferred tax assets
Security based payments
Equity accounted investments
Right-of-use assets*

Lease term, incremental borrowing rate
Fair value
Measurement of expected credit loss
Impairment trigger and recoverable amounts
Impairment trigger and recoverable amounts
Lower of cost and net realisable value
Recoverability
Fair value
Assessment of control versus disclosure guidance
Recoverable amount

Items marked with * contain judgements and estimates which have been significantly impacted by COVID-19.

Note

2
2
4
5
5
6
9
20
24(c)
24(d)(vii)

RESULT FOR THE YEAR
1. Segment Information
GPT’s operating segments are described in the following table. The chief operating decision makers monitor the performance of the
business on the basis of Funds from Operations (FFO) for each segment. FFO represents GPT’s underlying and recurring earnings from its
operations, and is determined by adjusting the statutory net profit after tax for certain items which are non-cash, unrealised or capital in
nature. FFO includes impairment losses related to uncollected trade receivables. FFO has been determined in accordance with guidelines
issued by the Property Council of Australia.

Financial StatementsThe GPT Group | Annual Report 2020Segment

Retail

Office

Types of products and services which generate the segment result

Ownership, development (including mixed use) and management of predominantly regional and sub-regional
shopping centres as well as GPT’s equity investment in GPT Wholesale Shopping Centre Fund.

Ownership, development (including mixed use) and management of prime CBD office properties with some
associated retail space as well as GPT’s equity investment in GPT Wholesale Office Fund.

Logistics

Ownership, development (including mixed use) and management of logistics assets.

Funds Management Management of two Australian wholesale property funds in the retail and office sectors.

Corporate

Cash and other assets and borrowings and associated hedges as well as net finance costs, corporate
management and administration expenses and income tax expense.

a) Segment financial information

31 December 2020

The segment financial information provided to the chief operating decision makers for the year ended 31 December 2020 is set out below:

Financial performance by segment

Rent from investment properties
Property expenses and outgoings
Income from Funds
Fee income
Management & administrative expenses

Operations Net Income

Development management fees
Development revenue
Development costs
Development management expenses

Development Net Income

Interest revenue
Finance costs

Net Finance Costs

Segment Result Before Tax
Income tax expense

Funds from Operations (FFO)

Note

b(ii)
b(iii)
b(iv)
b(v)
b(vi)

b(vii)
b(viii)

b(ix)

b(x)

b(i)

Retail
$M

287.3
(93.1)
28.3
10.4
(12.1)

220.8

1.9
4.6
—
(1.6)

4.9

—
—

—

225.7
—

225.7

Office
$M

273.5
(57.3)
70.5
3.6
(10.1)

280.2

4.5
—
—
(2.8)

1.7

—
—

—

281.9
—

281.9

Logistics
$M

Funds
Management
$M

Corporate
$M

169.9
(29.1)
—
—
(1.5)

139.3

—
1.2
(1.0)
(0.1)

0.1

—
—

—

139.4
—

139.4

—
—
—
61.1
(13.9)

47.2

—
—
—
—

—

—
—

—

47.2
—

47.2

—
—
—
—
(26.1)

(26.1)

—
—
—
—

—

1.1
(103.8)

(102.7)

(128.8)
(10.7)

(139.5)

Reconciliation of segment assets and liabilities to the Consolidated Statement of Financial Position

Office
$M

Logistics
$M

Funds
Management
$M

Corporate
$M

Current Assets
Current assets

Total Current Assets

Non-Current Assets
Investment properties
Equity accounted investments
Inventories
Other non-current assets

Total Non‑Current Assets

Total Assets

Current and non-current liabilities

Total Liabilities

Net Assets

Retail
$M

46.9

4,753.9
803.3
37.1
10.2

5,604.5

5,65 1.4

7.8

—

122.0

2,691.8
2,910.5
—
21.4

5,623.7

24.6

2,877.9
—
4.8
6.1

2,888.8

3,010.8

31.9

5,643.6

5,599.1

2,978.9

531.0

—
10.0
—
531.7

541.7

—

—
—
—
—

—

1,072.7

15,358.6

4,405.1

4,469.4

4.405.1

4,469.4

(3,332.4)

10,889.2

Total
$M

730.7
(179.5)
98.8
75.1
(63.7)

661.4

6.4
5.8
(1.0)
(4.5)

6.7

1.1
(103.8)

(102.7)

565.4
(10.7)

554.7

Total
$M

699.9

10,323.6
3,723.8
41.9
569.4

14,658.7

BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTS31 December 2019

The segment financial information provided to the chief operating decision makers for the year ended 31 December 2019 is set out below:

Financial performance by segment

Rent from investment properties
Property expenses and outgoings
Income from Funds
Fee income
Management & administrative expenses

Operations Net Income

Development management fees
Development revenue
Development costs
Development management expenses

Development Net Income

Interest revenue
Finance costs

Net Finance Costs

Segment Result Before Tax
Income tax expense

Funds from Operations (FFO)

Note

b(ii)
b(iii)
b(iv)
b(v)
b(vi)

b(vii)
b(viii)

b(ix)

b(x)

b(i)

Retail
$M

376.3
(106.4)
45.5
14.5
(8.3)

321.6

2.4
21.9
(17.0)
(2.9)

4.4

—
—

—

326.0
—

326.0

Office
$M

266.1
(57.0)
72.2
4.3
(10.3)

275.3

3.1
—
—
(2.1)

1.0

—
—

—

276.3
—

276.3

Logistics
$M

Funds
Management
$M

Corporate
$M

147.0
(24.9)
—
0.1
(1.3)

120.9

0.1
36.7
(35.9)
(0.8)

0.1

—
—

—

121.0
—

121.0

—
—
—
61.9
(15.6)

46.3

—
—
—
—

—

—
—

—

46.3
—

46.3

—
—
—
—
(35.3)

(35.3)

—
—
—
—

—

1.5
(109.5)

(108.0)

(143.3)
(12.6)

(155.9)

Reconciliation of segment assets and liabilities to the Consolidated Statement of Financial Position

Retail
$M

Office
$M

Logistics
$M

Funds
Management
$M

Corporate
$M

Current Assets
Current assets

Total Current Assets

Non-Current Assets
Investment properties
Equity accounted investments
Inventories
Other non-current assets

Total Non‑Current Assets

Total Assets

Current and non-current liabilities

Total Liabilities

Net Assets

—

13.7

5,356.6
990.8
71.8
10.2

6,429.4

6.4

2,532.5
3,542.2
—
28.0

6,102.7

25.9

2,438.4
—
6.0
12.1

2,456.5

2,470.2

31.9

6,423.0

6,076.8

2,438.3

—

—
—
—
—

—

Total
$M

789.4
(188.3)
117.7
80.8
(70.8)

728.8

5.6
58.6
(52.9)
(5.8)

5.5

1.5
(109.5)

(108.0)

626.3
(12.6)

613.7

Total
$M

258.8

10,327.5
4,543.0
77.8
660.7

245.1

—
10.0
—
610.4

620.4

15,609.0

865.5

15,867.8

4,477.0

4,541.2

(3,611.5)

11,326.6

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020b) Reconciliation of segment result to the Consolidated Statement of Comprehensive Income

FFO to Net (loss)/profit for the year

i)
Segment result
FFO
Adjustments
Fair value (loss)/gain on investment properties
Fair value (loss)/gain and other adjustments to equity accounted investments
Amortisation of lease incentives and costs
Straightlining of rental income

Valuation (decrease)/increase

Net loss on fair value movement of derivatives
Net impact of foreign currency borrowings and associated hedging loss
Net foreign exchange gain
Gain on financial liability at amortised cost

Financial instruments mark to market and net foreign exchange movements

Impairment (expense)/reversal
Other items

Total other items

Consolidated Statement of Comprehensive Income
Net (loss)/profit for the year

ii) Rent from investment properties
Segment result
Rent from investment properties
Less: share of rent from investment properties in equity accounted investments
Eliminations of intra-group lease payments
Adjustments
Amortisation of lease incentives and costs
Straightlining of rental income
Impairment loss on trade and other receivables

Consolidated Statement of Comprehensive Income
Rent from investment properties

iii) Property expenses and outgoings
Segment result
Property expenses and outgoings
Less: share of property expenses and outgoings in equity accounted investments

Consolidated Statement of Comprehensive Income
Property expenses and outgoings

iv) Share of after tax profit of equity accounted investments
Segment result
Income from funds
Share of rent from investment properties in equity accounted investments
Share of property expenses and outgoings in equity accounted investments
Development revenue – equity accounted investments
Development costs – equity accounted investments
Adjustments
Fair value (loss)/gain and other adjustments to equity accounted investments

Consolidated Statement of Comprehensive Income
Share of after tax (loss)/profit of equity accounted investments

31 Dec 20
$M

31 Dec 19
$M

554.7

613.7

(365.6)
(295.4)
(56.9)
5.4

(712.5)

(39.6)
(15.1)
0.4
2.1

(52.2)

(3.4)
0.3

(3.1)

310.8
72.6
(47.8)
6.6

342.2

(74.4)
(10.8)
—
2.5

(82.7)

12.1
(5.3)

6.8

(213.1)

880.0

730.7
(114.3)
(1.5)

(56.9)
5.4
62.4

789.4
(94.2)
(1.1)

(47.8)
6.6
0.9

625.8

653.8

(179.5)
21.7

(188.3)
18.1

(157.8)

(170.2)

98.8
114.3
(21.7)
4.6
—

(295.4)

117.7
94.2
(18.1)
—
(0.1)

72.6

(99.4)

266.3

Year ended 31 December 2020

v) Fee income
Segment result
Fee income
Adjustments
Management expenses offset in fee income

Consolidated Statement of Comprehensive Income
Property and fund management fees

vi) Management and administration expenses
Segment result
Operations
Development
Eliminations of intra-group lease payments
Transfer to Finance costs – leases
Less: depreciation expense
Less: impairment and amortisation of software
Less: other amortisation expense
Less: other impairment expense
Adjustments
Other
Management expenses recognised within fee income

Consolidated Statement of Comprehensive Income
Management and other administration costs

vii) Development revenue
Segment result
Development revenue
Less: share of after tax profit of equity accounted investments

Consolidated Statement of Comprehensive Income
Development revenue

viii) Development costs
Segment result
Development costs
Less: share of after tax loss of equity accounted investments

Consolidated Statement of Comprehensive Income
Development costs

ix) Finance costs
Segment result
Finance costs – borrowings
Finance costs – leases

Consolidated Statement of Comprehensive Income
Finance costs

Income tax expense

x)
Segment result
Income tax expense
Adjustment
Tax impact of reconciling items from segment result to net (loss)/profit for the year

Consolidated Statement of Comprehensive Income
Income tax expense

31 Dec 20
$M

31 Dec 19
$M

75.1

8.4

80.8

8.2

83.5

89.0

(63.7)
(4.5)
1.5
1.9
3.5
7.4
0.1
0.1

(1.2)
(8.4)

(70.8)
(5.8)
1.1
1.2
1.9
—
—
—

(1.1)
(8.2)

(63.3)

(81.7)

5.8
(4.6)

58.6
—

1.2

58.6

(1.0)
—

(52.9)
0.1

(1.0)

(52.8)

(103.8)
(1.9)

(109.5)
(1.2)

(105.7)

(110.7)

(10.7)

(12.6)

1.6

0.8

(9.1)

(11.8)

Financial StatementsThe GPT Group | Annual Report 2020c) Net profit on disposal and derecognition of assets

Details of disposals during the year:
Cash consideration
Less: transaction costs

Net consideration

Carrying amount of net assets sold

Profit on sale and derecognition before income tax

The carrying amounts of assets and liabilities as at the date of disposal were:
Investment properties
Equity accounted investments

Net assets

OPERATING ASSETS AND LIABILITIES
2.

Investment Properties

31 Dec 20
$M

31 Dec 19
$M

650.0
(4.5)

645.5

800.0
(3.7)

796.3

(645.5)

(796.3)

—

61.8
583.7

645.5

796.3
—

796.3

Basis of valuation
In line with the Valuation Policy, GPT independently values each asset (including investment property assets disclosed within equity
accounted investments) at least annually. However, in light of the current economic environment, the Group independently valued all
investment properties as at the reporting date (excluding assets held for sale and acquired during the second half of the year).

These valuations were undertaken having regards to the following factors:

» The government legislated the Code of Conduct for commercial tenancies, in addition to implementing various health and other

economic measures which have impacted GPT’s properties, tenants and cash flows;

» Independent valuers will analyse and then reflect transaction evidence in their key valuation assumptions, including capitalisation and

discount rates, when the evidence becomes available. The fair value assessment of GPT’s portfolio as at the reporting date includes an
estimate of the impacts of COVID-19 using information available at the time of preparation of the financial statements, including the
impact of rent relief estimated to be granted to tenants. Independent valuers have also adjusted a number of assumptions, including
increasing allowances for incentives and lease up periods for current vacancies and near term lease expiries and lowering forecast
market rental growth rates; and

» In the event that COVID-19 impacts are more severe or prolonged than anticipated, this may have a further adverse impact on the fair

value of GPT’s investment properties.

The independent valuations contained material valuation uncertainty clauses given the impacts of COVID-19. The valuations can be relied
upon at the date of valuation however, a higher level of valuation uncertainty than normal is assumed.

GPT provides factual information to the independent valuers, including passing rent information, outstanding incentives and capital
expenditure forecasts which the independent valuers then use to form their own assessment. Management has reviewed the investment
property valuations for both accuracy and reasonableness of the assumptions used to determine fair value. The fair values, as assessed
by the independent valuers, are shown in the following tables.

Investment properties

Retail
Office
Logistics
Properties under development

Total investment properties

Investment
properties

Less lease
liabilities
31 Dec 20

Fair value

Investment
properties

Less lease
liabilities
31 Dec 19

Note

(i)
(ii)
(iii)
(iv)

(vi)

4,753.9
2,437.8
2,666.7
465.2

10,323.6

(7.8)
—
—
—

(7.8)

4,746.1
2,437.8
2,666.7
465.2

5,356.6
2,410.5
2,223.8
336.6

10,315.8

10,327.5

(6.4)
—
—
—

(6.4)

Fair value

5,350.2
2,410.5
2,223.8
336.6

10,321.1

BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTSe

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.
1

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020

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Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020

vi) Reconciliation

Opening balance at the beginning of the year
Additions – operating capital expenditure
Additions – development capital expenditure
Additions – interest capitalised 1
Asset acquisitions
Transfers to assets held for sale
Transfers to/(from) properties under development
Transfer from inventory
Ground leases of investment properties
Disposals
Fair value adjustments
Lease incentives (includes rent free)
Leasing costs
Amortisation of lease incentives and costs
Straightlining of leases

Office
$M

Logistics
$M

Properties
under
development
$M

31 Dec 20
$M

31 Dec 19
$M

2,410.5
6.1
22.3
0.3
—
—
—
—
—
—
(0.7)
22.4
2.0
(23.9)
(1.2)

2,223.8
8.0
8.9
—
205.0
(103.0)
182.7
—
—
(58.2)
197.2
10.8
1.7
(16.5)
6.3

336.6
—
194.5
9.5
40.7
—
(182.7)
—
—
—
66.4
—
—
—
0.2

10,327.5
28.4
247.4
10.3
245.7
(108.5)
—
—
1.4
(61.8)
(365.6)
43.7
6.6
(56.9)
5.4

10,128.8
51.4
269.1
9.5
296.4
—
—
39.6
6.4
(796.3)
310.8
44.8
8.2
(47.8)
6.6

Retail
$M

5,356.6
14.3
21.7
0.5
—
(5.5)
—
—
1.4
(3.6)
(628.5)
10.5
2.9
(16.5)
0.1

Closing balance at the end of the year

4,753.9

2,437.8

2,666.7

465.2

10,323.6

10,327.5

1. A capitalisation interest rate of 3.1% (2019: 3.6%) has been applied when capitalising interest on qualifying assets.

Land and buildings which are held to earn rental income or for capital appreciation or for both, and which are not wholly occupied by GPT,
are classified as investment properties.

Investment properties are initially recognised at cost and subsequently stated at fair value at each balance date. Fair value is based on
the latest independent valuation adjusting for capital expenditure and capitalisation and amortisation of lease incentives since the date
of the independent valuation report. Any change in fair value is recognised in the Consolidated Statement of Comprehensive Income in
the period.

Properties under development are stated at fair value at each balance date. Fair value is assessed with reference to reliable estimates
of future cash flows, status of the development and the associated risk profile. Finance costs incurred on properties undergoing
development are included in the cost of the development.

Lease incentives provided by GPT to lessees are included in the measurement of fair value of investment property and are amortised
over the lease term using a straightline basis.

BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTSb) Fair value measurement, valuation techniques and inputs
Critical judgements are made by GPT in respect of the fair values of investment properties. Fair values are reviewed regularly by
management with reference to independent property valuations, recent transactions and market conditions, using generally accepted
market practices. A description of the valuation techniques and key inputs are included in the following table:

Class
of assets

Retail

Fair value
hierarchy 1

Valuation
technique

Level 3

Discounted
cash flow (DCF)
and income
capitalisation
method

Office

Level 3

DCF and income
capitalisation
method

Logistics

Level 3

DCF and income
capitalisation
method

Inputs used to measure fair value

Gross market rent (per sqm p.a.)
10 year average specialty market rental growth
Adopted capitalisation rate
Adopted terminal yield
Adopted discount rate
Lease incentives (gross)
COVID-19 allowance (% of annual income)

Net market rent (per sqm p.a.)
10 year average market rental growth
Adopted capitalisation rate
Adopted terminal yield
Adopted discount rate
Lease incentives (gross)
COVID-19 allowance (% of annual income)

Net market rent (per sqm p.a.)
10 year average market rental growth
Adopted capitalisation rate
Adopted terminal yield
Adopted discount rate
Lease incentives (net)
COVID-19 allowance (% of annual income)

Level 3

Properties
under
development

Income
capitalisation
method, or land
rate

Net market rent (per sqm p.a.)
Adopted capitalisation rate
Adopted terminal yield
Adopted discount rate
Land rate (per sqm)
Profit and risk factor

1. Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Unobservable inputs
31 Dec 20

Unobservable inputs
31 Dec 19

$1,382 – $2,238
2.4% – 3.1%
4.50% – 6.25%
4.75% – 6.50%
6.00% – 7.00%
7.3% – 12.5%
7.3% – 20.1%

$430 – $1,435
2.5% – 3.7%
4.75% – 5.75%
5.00% – 6.00%
6.13% – 6.50%
10.0% – 38.5%
– 52.0%
0%

$70 – $530
2.6% – 3.4%
4.38% – 5.75%
4.63% – 6.00%
6.00% – 6.75%
8.3% – 30.0%
– 25.0%
0%

$109 – $655
5.00% – 5.25%
5.00% – 5.63%
6.00% – 6.38%
$250 – $500
15.0% – 16.9%

$1,330 – $2,423
2.8% – 3.6%
4.25% – 6.00%
4.50% – 6.25%
6.25% – 7.00%
5.0% – 7.5%
—

$425 – $1,620
3.3% – 4.3%
4.39% – 5.50%
4.63% – 5.75%
6.25% – 6.75%
15.0% – 37.5%
—

$65 – $515
2.8% – 3.2%
4.63% – 7.00%
5.00% – 7.25%
6.25% – 7.50%
10.0% – 30.0%
—

$85 – $655
5.13% – 5.63%
5.50% – 6.00%
6.50% – 6.63%
$217 – $531
5.0% – 15.0%

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020DCF method

Under the DCF method, the fair value is estimated using explicit assumptions regarding the benefits and
liabilities of ownership over the assets’ or liabilities’ life including an exit or terminal value. The DCF method
involves the projection of a series of cash flows from the assets or liabilities. To this projected cash flow series,
an appropriate, market-derived discount rate is applied to establish the present value of the cash flow stream
associated with the assets or liabilities.

Income capitalisation
method

This method involves assessing the total net market income receivable from the property and capitalising this
in perpetuity to derive a capital value, with allowances for capital expenditure and reversions.

Gross market rent

Net market rent

A gross market rent is the estimated amount of rent for which a property or space within a property should lease
between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after
proper marketing and wherein the parties have each acted knowledgeably, prudently and without compulsion.

A net market rent is the estimated amount for which a property or space within a property should lease between
a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper
marketing and wherein the parties have each acted knowledgeably, prudently and without compulsion and
excludes the building outgoings or cleaning costs paid by the tenant.

10 year average
specialty market
rental growth

The expected annual rate of change in market rent over a 10 year forecast period in specialty tenancy rents.
Specialty tenants are those tenancies with a gross lettable area of less than 400 square metres (excludes ATMs
and kiosks).

10 year average
market rental growth

The expected annual rate of change in market rent over a 10 year forecast period.

Adopted
capitalisation rate

The rate at which net market income is capitalised to determine the value of a property. The rate is determined
with regards to market evidence.

Adopted terminal
yield

The capitalisation rate used to convert income into an indication of the anticipated value of the property at the
end of the holding period when carrying out a discounted cash flow calculation. The rate is determined with
regards to market evidence.

Adopted
discount rate

The rate of return used to convert a monetary sum, payable or receivable in the future, into present value.
Theoretically it should reflect the opportunity cost of capital, that is, the rate of return the capital can earn if put
to other uses having similar risk. The rate is determined with regards to market evidence.

Land rate (per sqm)

The land rate is the market land value per sqm.

Profit and risk factor

The profit and risk factor is applied to the remaining costs of a development to reflect a target margin required
to complete the project. The factor will vary depending on the remaining leasing or construction required.

Lease incentives

A lease incentive is often provided to a lessee upon the commencement of a lease. Incentives can be a
combination of, or, one of the following: a rent free period, a fit-out contribution, a cash contribution or
rental abatement.

COVID-19 allowance

The COVID-19 allowance reflects the anticipated prospective rent relief granted to tenants in accordance with
the Code of Conduct principles.

BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTSc) Valuation process – investment properties
GPT manages the semi-annual valuation process to ensure that investment properties are held at fair value in GPT’s accounts and that
GPT is compliant with applicable regulations (for example the Corporations Act 2001 and ASIC regulations), the GPT RE Constitution and
Compliance Plan.

GPT has a Valuation Committee (committee) which is comprised of the Chief Operating Officer, Chief Financial Officer, Head of Funds
Management, Head of Transactions, Deputy Chief Financial Officer and General Counsel.

The purpose of the committee is to:

» approve the panel of independent valuers;

» review valuation inputs and assumptions;

» provide an escalation process where there are differences of opinion from various team members responsible for the valuation;

» oversee the finalisation of the valuations; and

» review the independent valuation sign-off and any comments that have been noted.

All independent valuations and internal tolerance checks are reviewed by the committee prior to these being presented to the Board
for approval.

Independent valuations
GPT’s independent valuations are performed by independent professionally qualified valuers who hold recognised relevant professional
qualifications and have specialised expertise in the investment properties being valued. Selected independent valuation firms form part of a
panel approved by the committee. Each valuation firm is limited to undertaking consecutive valuations of a property for a maximum period
of two years. Where an exceptional circumstance arises, the extension of the valuer’s term must be approved by the relevant Board.

The Valuation Policy requires an independent valuation at least annually for all completed investment properties. Properties under
development with value of $100 million or greater are independently valued at least every six months. Unimproved land is independently
valued at least every three years. Additional valuations will be completed in the event an internal tolerance check identifies the
requirement for an independent valuation.

In 2020, given the uncertainty caused by COVID-19, all properties were independently valued at both 30 June and 31 December 1.

Internal tolerance checks
Every six months, with the exception of properties independently valued, an internal tolerance check is prepared. The internal tolerance
check involves the preparation of a DCF and income capitalisation valuation for each investment property. These are produced using
a capitalisation rate, terminal yield and discount rates based on comparable market evidence and recent independent valuation
parameters. The tolerance measurement will typically be a mid-point of these two approaches.

These internal tolerance checks are used to determine whether the book value is in line with the fair value or whether an independent
valuation is required.

Properties under development
The valuation of the properties under development is determined by a development feasibility analysis for each parcel of land within
each asset. The development feasibility is prepared on an “as if complete” basis and is a combination of the income capitalisation
method and where appropriate, the discounted cash flow method. The cost to complete the development includes development costs,
finance costs and an appropriate profit and risk margin. These costs are deducted from the “as if complete” valuation to determine the
“as is” basis or “current fair value.”

The fair value of vacant land parcels is based on the market land value per square metre.

Highest and best use
The fair value of investment properties is calculated based on the highest and best use whether or not current use reflects highest and
best use. For all GPT investment properties current use equates to the highest and best use, with the exception of Sydney Olympic Park
Town Centre.

The masterplan for Sydney Olympic Park provides long term opportunities for the Town Centre to significantly increase the floor
space developed within the precinct, subject to development and planning approvals. The assets are currently leased and any future
redevelopment is also subject to the expiration of these leases. It is noted that the determination is exclusive of 5 Figtree Drive, Sydney
Olympic Park which has been determined by the independent valuer as at 31 December 2020 to retain its highest and best use as a
logistics asset.

1. Excludes assets held for sale and acquired during the second half of the year.

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020d) Sensitivity information – investment properties
Critical judgements are made by GPT in respect of the fair values of investment properties (including investment properties within equity
accounted investments). Fair values are reviewed regularly by management with reference to independent property valuations, recent
offers and market conditions, and using generally accepted market practices. The valuation process, critical assumptions underlying the
valuations and information on sensitivity are disclosed below and in note 2(b).

An independent valuer will typically conduct both an income capitalisation valuation and a discounted cash flow (DCF) valuation for each
asset, which informs a range of valuation outcomes. The valuer will then apply their expertise in determining an adopted value, which may
include adopting one of these specific approaches or a mid-point of these two approaches.

Given the higher prevalence of DCF based valuations, management have included a sensitivity table reflecting potential movements in
key DCF valuation variables, being discount rate and the market income growth rate. In conducting the sensitivity analysis, management
have selected sample of two assets for each portfolio, for which key metrics are typical of the portfolio to which they relate. For those
assets, the independent valuer conducted the sensitivity analysis in the following tables. Results for individual assets may differ based on
each asset’s particular attributes and market conditions.

The table below shows the sensitivity of the valuation to movements in the key variables of discount rate and market rental growth rates.

Retail valuation sensitivity

Discount Rate

Impact to valuation

10 Year Specialty Growth Rate

Impact to valuation

ii) Office valuation sensitivity

Discount Rate

Impact to valuation

10 Year Growth Rate

Impact to valuation

iii) Logistics valuation sensitivity

Discount Rate

Impact to valuation

10 Year Growth Rate

Impact to valuation

e) Lease receivables
Lease amounts to be received not recognised in the financial statements at balance date are as follows:

Less than 1 year
2 years
3 years
4 years
5 years
Due after five years

Total operating lease receivables

(0.25%)

2.0%

(0.25%)

(1.6%)

0.25%

(2.0%)

0.25%

1.7%

(0.25%)

0.25%

2.1%

(2.1%)

(0.25%)

(2.0%)

0.25%

1.9%

(0.25%)

0.25%

1.9%

(1.9%)

(0.25%)

(1.8%)

0.25%

1.9%

31 Dec 20
$M

31 Dec 19
$M

550.0
478.1
398.5
337.9
278.1
1,021.2

3,063.8

524.2
469.0
413.0
340.4
282.9
1,100.2

3,129.7

Lease amounts to be received includes future amounts to be received on non-cancellable operating leases, not recognised in the
financial statements at balance date. A proportion of this balance includes amounts receivable for recovery of operating costs on gross
and semi-gross leases which will be accounted for as revenue from contracts with customers as this income is earned. The remainder
will be accounted for as lease income as it is earned. Amounts receivable under non-cancellable operating leases where GPT’s right
to consideration for a service directly corresponds with the value of the service provided to the customer have not been included (for
example, variable amounts payable by tenants for their share of the operating costs of the asset). Leases have only been included where
there is an active lease in place and renewal has not been assumed unless there is reasonable certainty that the tenant intends to renew.

Investments in joint ventures
Investments in associates

Total equity accounted investments

a) Details of equity accounted investments

Name

i)
Joint ventures
2 Park Street Trust 1
1 Farrer Place Trust 1,2
Horton Trust
Lendlease GPT (Rouse Hill) Pty Limited 1,3

Total investment in joint venture entities

ii) Associates
GPT Wholesale Office Fund 1,4
GPT Wholesale Shopping Centre Fund 1,5
GPT Funds Management Limited
Darling Park Trust 1
DPT Operator Pty Limited 1
DPT Operator No.2 Pty Limited 1

Total investments in associates

Note

(a)(i)
(a)(ii)

31 Dec 20
$M

848.6
2,875.2

31 Dec 19
$M

1,431.1
3,111.9

3,723.8

4,543.0

Principal Activity

31 Dec 20
%

31 Dec 19
%

31 Dec 20
$M

31 Dec 19
$M

Ownership Interest

Investment property
Investment property
Investment property
Property development

Investment property
Investment property
Funds management
Investment property
Management
Management

50.00
—
50.00
50.00

21.87
28.48
100.00
41.67
91.67
91.67

50.00
50.00
50.00
50.00

22.93
28.49
100.00
41.67
91.67
91.67

804.6
—
28.1
15.9

848.6

1,579.6
759.3
10.0
526.3
—
—

2,875.2

795.8
594.3
29.7
11.3

1,431.1

1,610.6
949.8
10.0
541.5
—
—

3,111.9

1. The entity has a 30 June balance date.
2. On 14 December 2020, GPT disposed of its interest in 1 Farrer Place Trust.
3. GPT has a 50% interest in Lendlease GPT (Rouse Hill) Pty Limited, a joint venture developing residential and commercial land at Rouse Hill, in partnership with Urban Growth and the

NSW Department of Planning.

4. Ownership has decreased as a result of GPT not participating in the Distribution Reinvestment Plan (DRP) and equity raisings which occurred during the year.
5. Ownership has decreased as a result of GPT not participating in the DRP during the year.

For those joint ventures with investment property as the principal activity refer to note 2 for details on key judgements and estimates
relating to the valuation of these investment properties, including how COVID-19 impacts have been addressed.

For those joint ventures where the principal activity is property development refer to note 6 for details on key judgements and estimates.

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020b) Summarised financial information for associates and joint ventures
The information disclosed reflects the amounts presented in the 31 December 2020 financial results of the relevant associates and joint
ventures and not GPT’s share of those amounts. They have been amended to reflect adjustments made by GPT when using the equity
method, including fair value adjustments and modifications for differences in accounting policies.

Joint ventures

Current assets
Cash and cash equivalents
Other current assets

Total current assets

Non-current assets
Investment properties and loans
Other non-current assets

Total non‑current assets

Current liabilities
Financial liabilities (excluding trade
payables, other payables and provisions)
Other current liabilities

Total current liabilities

Net assets

Reconciliation to carrying amounts:
Opening net assets 1 January
Profit for the year
Capital injection
Issue of equity
Distributions paid/payable
Disposal of units in trust

Closing net assets

GPT’s share

Summarised statement
of comprehensive income
Revenue
Profit for the year
Total comprehensive income

2 Park Street Trust

1 Farrer Place Trust

Others

Total

31 Dec 20
$M

31 Dec 19
$M

31 Dec 20
$M

31 Dec 19
$M

31 Dec 20
$M

31 Dec 19
$M

31 Dec 20
$M

31 Dec 19
$M

30.3
0.7

31.0

20.2
1.8

22.0

1,610.0
—

1,590.0
—

1,610.0

1,590.0

31.3
0.6

31.9

19.8
0.6

20.4

1,609.1

1,591.6

—
—

—

—
—

—

—
—

—

12.2
5.7

17.9

1,203.5
—

1,203.5

24.3
8.6

32.9

11.8
18.4

30.2

57.0
7.2

64.2

2.6
3.8

6.4

7.9
0.4

8.3

62.1
15.0

77.1

3.1
0.3

3.4

42.1
19.1

61.2

40.3
7.9

48.2

1,667.0
7.2

2,855.6
15.0

1,674.2

2,870.6

33.9
4.4

38.3

47.2
9.5

56.7

1,188.5

88.0

82.0

1,697.1

2,862.1

1,591.6
84.1
—
—
(66.6)
—

1,526.2
131.2
—
—
(65.8)
—

1,609.1

1,591.6

804.6

795.8

1,188.5
12.0
—
3.2
(35.9)
(1,167.8)

—

1,107.2
117.5
—
9.4
(45.6)
—

1,188.5

82.0
4.8
2.8
—
(1.6)
—

88.0

594.3

44.0

82.8
0.6
—
—
(1.4)
—

82.0

41.0

2,862.1
100.9
2.8
3.2
(104.1)
(1,167.8)

2,716.2
249.3
—
9.4
(112.8)
—

1,697.1

2,862.1

848.6

1,431.1

72.8
84.1
84.1

73.8
131.2
131.2

31.4
12.0
12.0

61.2
117.5
117.5

25.6
4.8
4.8

5.2
0.6
0.6

129.8
100.9
100.9

140.2
249.3
249.3

BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTSii) Associates

GPT Wholesale
Office Fund

GPT
Wholesale Shopping
Centre Fund

Darling Park
Trust

GPT Funds
Management Limited
and others

Total

31 Dec 20
$M

31 Dec 19
$M

31 Dec 20
$M

31 Dec 19
$M

31 Dec 20
$M

31 Dec 19
$M

31 Dec 20
$M

31 Dec 19
$M

31 Dec 20
$M

31 Dec 19
$M

10.0

186.5

167.8
— 14,015.8 14,509.8
287.4
—
275.8
2,722.8
— 2,765.0

10.0

11,161.5

11,667.4

10.2
(0.2)
—
—
—

11,667.4 9,954.3
603.7
1,283.2
263.4
(437.2)

(496.7)
14.9
332.8
(356.9)

10.0

11.161.5

11,667.4

10.0

2,875.2

3,111.9

—
(0.2)

736.6
(496.7)

894.1
603.7

(0.2)

(496.7)

603.7

—

52.1

56.5

Total current assets
Total non-current assets
Total current liabilities
Total non-current liabilities

68.9
8,968.2
174.5
1,640.2

81.9
8,725.3
169.1
1,614.4

78.3
3,778.6
66.2
1,124.8

49.6
4,478.0
85.1
1,108.4

29.3
1,269.0
35.1
—

26.3
1,306.5
33.2
—

Net assets

7,222.4

7,023.7

2,665.9

3,334.1

1,263.2

1,299.6

Reconciliation to
carrying amounts:
Opening net assets 1 January
Profit/(loss) for the year
Acquisition of units in trust
Issue of equity
Distributions paid/payable

7,023.7
156.9
—
331.9
(290.1)

6,395.7
662.4
—
253.2
(287.6)

3,334.1
(668.4)
—
0.9
(0.7)

3,548.4
(104.5)
—
10.2
(120.0)

1,299.6
14.8
14.9
—
(66.1)

—
46.0
1,283.2
—
(29.6)

Closing net assets

7,222.4

7,023.7

2,665.9

3,334.1

1,263.2

1,299.6

GPT’s share

1,579.6

1,610.6

759.3

949.8

526.3

541.5

Summarised statement of
comprehensive income
Revenue
Profit/(loss) for the year
Total comprehensive
income/(loss)

Distributions
received/receivable
from their associates

413.0
156.9

550.2
662.4

224.7
(668.4)

316.5
(104.5)

98.9
14.8

27.4
46.0

156.9

662.4

(668.4)

(104.5)

14.8

46.0

52.1

56.5

—

10.0
—
—
—

10.0

10.0
—
—
—
—

10.0

—
—

—

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 20204. Trade and Other Receivables

a) Trade receivables

Current assets
Trade receivables 1
Accrued income
Related party receivables 2
Less: impairment of trade receivables

Total current trade receivables

31 Dec 20
$M

31 Dec 19
$M

50.2
7.2
24.6
(19.3)

62.7

8.7
13.8
26.3
(1.9)

46.9

1. This includes trade receivables relating to revenue from contracts with customers. Refer to note 17 for the methodology of apportionment between trade receivables relating to

AASB 15 Revenue from Contacts with Customers and other trade receivables balances.

2. The related party receivables are on commercial terms and conditions.

The following table shows the ageing analysis of GPT’s trade receivables.

Not yet
due
$M

2.1
1.1
0.1
—

0–30
days
$M

17.5
1.3
1.7
25.8

31 Dec 20

31–60
days
$M

61–90
days
$M

6.6
0.8
—
0.3

4.6
0.2
0.2
0.1

90+
days
$M

17.5
1.5
0.5
0.1

Total
$M

48.3
4.9
2.5
26.3

(1.3)

(5.6)

(3.0)

(2.0)

(7.4)

(19.3)

Retail
Office
Logistics
Corporate
Less: impairment of
trade receivables

Total loans and receivables

2.0

40.7

4.7

3.1

12.2

62.7

31 Dec 19

31–60
days
$M

61–90
days
$M

0.6
0.1
—
0.2

—

0.9

—
—
—
0.2

—

0.2

0–30
days
$M

2.9
12.8
1.9
28.2

—

45.8

Not yet
due
$M

—
—
—
—

—

90+
days
$M

1.5
0.4
—
—

Total
$M

5.0
13.3
1.9
28.6

(1.9)

—

46.9

b) Other receivables

Current assets
Distributions receivable from associates
Distributions receivable from joint ventures
Other receivables

Total current other receivables

31 Dec 20
$M

31 Dec 19
$M

23.0
2.2
5.5

30.7

30.7
10.8
6.9

48.4

On 7 April 2020, the National Cabinet announced a mandatory commercial tenancy Code of Conduct. The Code of Conduct aims to
help small and medium enterprise (SME) tenants with a turnover of less than $50 million, that qualify for the Federal Government’s
JobKeeper program, and are suffering financial stress or hardship. The Code of Conduct sets out principles to guide discussions between
commercial landlords and SME tenants for temporary changes to leasing arrangements during the COVID-19 period and is legislated and
regulated by the states and territories.

The application of the Code of Conduct requires GPT to engage with each of our SME tenants and provide cash flow support in a fair
and proportionate manner during the COVID-19 period. Importantly, the Code of Conduct allows the Group to negotiate commercial
outcomes on a case by case basis for those SMEs most impacted. While steady progress has been made in finalising agreements under
the Code of Conduct, there are still a number of deals that remain unresolved. GPT is also engaging with its non-SME tenants who have
sought assistance but are not eligible under the Code of Conduct. Assistance provided to tenants under the Code of Conduct has taken
the form of rent waivers, rent payment deferral or a combination of the two.

Receivables are initially recognised at fair value and subsequently at amortised cost using the effective interest rate method less any
allowance under the ‘expected credit loss’ (ECL) model. GPT holds these financial assets in order to collect the contractual cash flows,
and the contractual terms are solely payments of outstanding principal and interest on the principal amount outstanding.

All loans and receivables with maturities greater than 12 months after the balance date are classified as non-current assets.

Rent waivers and other write-offs
Debts which management has determined will be subject to a rent waiver, or are otherwise uncollectible have been written off as at
31 December 2020, in accordance with the requirements of AASB 9 Financial Instruments. Bad debt write offs of $44.7 million relating
to COVID-19 abatements and other non recoverable amounts have been recognised during the financial year. Waivers which have been
reflected on invoices issued to tenants and which are not relating to previous outstanding debtors, have been shown as a reduction to
rent from investment properties on the Consolidated Statement of Comprehensive Income.

BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTSEstimated credit loss allowance
For remaining trade and other receivables balances which have not been written off, management has assessed whether these balances
are “credit impaired”, and recognised a loss allowance equal to the lifetime ECL.

Recoverability of receivables
At each reporting date, GPT assesses whether financial assets carried at amortised cost are ‘credit-impaired’. A financial asset is ‘credit-impaired’
when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset is expected to occur.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of the trade receivable and are a probability-
weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the
cash flows due to GPT in accordance with the contract and the cash flows that GPT expects to receive). A default on trade receivables is
when the counterparty fails to make contractual payments when they fall due and management determines that the debt is uncollectible,
or where management forgives all or part of the debt.

GPT analyses the age of outstanding receivable balances and applies historical default percentages adjusted for other current
observable data as a means to estimate lifetime ECL. Other current observable data may include:

» forecasts of economic conditions such as unemployment, interest rates, gross domestic product and inflation;

» financial difficulties of a counterparty or probability that a counterparty will enter bankruptcy; and

» conditions specific to the asset to which the receivable relates.

Debts that are known to be uncollectable are written off when identified.

As a result of COVID-19 GPT has reviewed its methodology to determine an estimated lifetime ECL, with historical default percentages
no longer the most appropriate means of predicting future default events. At 31 December 2020, GPT has assessed the likelihood of
future defaults and debt forgiveness taking into account several factors. These include the risk profile of the tenant, the asset location,
and tenant cash payment trends after the completion of rent relief agreements.

This has resulted in an ECL allowance of $19.3 million being recognised as at 31 December 2020. The remaining net balance of trade
receivables (excluding accrued income and related party receivables) is $30.9 million.

Intangible Assets

Costs
Balance at 31 December 2018
Additions
Write off

Balance at 31 December 2019
Additions
Write off

Balance at 31 December 2020

Accumulated amortisation and impairment
Balance at 31 December 2018
Amortisation
Impairment
Write off

Balance at 31 December 2019
Amortisation
Impairment
Write off

Balance at 31 December 2020

Carrying amounts
Balance at 31 December 2019
Balance at 31 December 2020

Management
rights
$M

IT development
and software
$M

55.8
—
—

55.8
—
(3.8)

52.0

(45.5)
—
—
—

(45.5)
—
—
3.8

(41.7)

10.3
10.3

64.3
15.7
(4.7)

75.3
13.6
(13.2)

75.7

(47.8)
(5.0)
(2.2)
4.7

(50.3)
(5. 1)
(2.3)
13.2

(44.5)

25.0
31.2

Total
$M

120.1
15.7
(4.7)

131.1
13.6
(17.0)

127.7

(93.3)
(5.0)
(2.2)
4.7

(95.8)
(5. 1)
(2.3)
1 7.0

(86.2)

35.3
41.5

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020Management rights
Management rights include property management and development management rights. Rights are initially measured at cost and
subsequently amortised over their useful life.

For the management rights of Highpoint Shopping Centre, management considers the useful life as indefinite as there is no fixed term
included in the management agreement. Therefore, GPT tests for impairment at balance date. Assets are impaired if the carrying value
exceeds their recoverable amount. The recoverable amount is determined using a discounted cash flow. A 13% pre-tax discount rate and
2.8% growth rate have been applied to these asset specific cash flow projections.

During the year management tested all inputs in the fair value assessment of the management rights and have adjusted these inputs
where they have been impacted by the COVID-19 pandemic. Based on this assessment management believes that the fair value of the
management rights remains appropriate and no impairment is required.

IT development and software
Costs incurred in developing systems and acquiring software and licenses that will contribute future financial benefits are capitalised.
These include external direct costs of materials and services and direct payroll and payroll related costs of employees’ time spent on
the project. Costs of employees time is capitalised where new functionality is being created and ceases once operating as intended.
Amortisation is calculated on a straightline basis over the length of time over which the benefits are expected to be received, generally
ranging from 5 to 10 years.

IT development and software are assessed for impairment at each reporting date by evaluating if any impairment triggers exist. Where
impairment triggers exist, management calculate the recoverable amount. The asset will be impaired if the carrying value exceeds the
recoverable amount. Critical judgements are made by GPT in setting appropriate impairment triggers and assumptions used to determine
the recoverable amount.

Management has reviewed the impairment indicators for the year including the COVID-19 pandemic and have recorded an impairment
where appropriate. Impairment has arisen as a result of software obsolescence and capital management strategies employed as part
of management’s response to the COVID-19 pandemic where software development projects have either been cancelled or delayed.
Management believe the carrying value reflects the recoverable amount.

Inventories

Development properties

Current inventories

Development properties

Non‑current inventories

Total inventories

31 Dec 20
$M

31 Dec 19
$M

53.6

41.9

95.5

9.4

77.8

87.2

Development properties held as inventory to be sold are stated at the lower of cost and net realisable value.

Cost
Cost includes the cost of acquisition, development, finance costs and all other costs directly related to specific projects including an
allocation of direct overhead expenses. A total of $2.6 million in finance costs have been capitalised to inventory for the year ended
31 December 2020 (2019: $5.4 million).

Net realisable value (NRV)
The NRV is the estimated selling price in the ordinary course of business less estimated costs to sell. At each reporting date,
management reviews these estimates by taking into consideration:

» the most reliable evidence; and

» any events which confirm conditions existing at the year end and cause any fluctuations of selling price and costs to sell.

Management has completed net realisable value assessments for each development taking into account the impacts of COVID-19
on these estimates including impacts on delivery timeframes and revenue assumptions, and has compared the results to the cost
of each development.

The amount of any write down is recognised as an impairment expense in the Consolidated Statement of Comprehensive Income.
An impairment expense of $0.3 million has been recognised for the year ended 31 December 2020 (2019: impairment reversal of
$15.0 million).

BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTS7. Payables

Trade payables and accruals
GST payables
Distribution payable to stapled securityholders
Interest payable
Levies payable
Other payables

Total payables

31 Dec 20
$M

31 Dec 19
$M

108.5
3.2
—
16.6
20.1
32.1

180.5

129.9
3.8
260.4
11.1
18.9
32.3

456.4

Trade payables and accruals represent liabilities for goods and services provided to GPT prior to the end of the financial year which are
unpaid. They are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method.

8. Provisions

Current provisions
Employee benefits
Other

Total current provisions

Non-current provisions
Employee benefits

Total non‑current provisions

31 Dec 20
$M

31 Dec 19
$M

15.3
14.4

29.7

1.1

13.4
13.9

27.3

1.2

Provisions are recognised when:

» GPT has a present obligation (legal or constructive) as a result of a past event;

» it is probable that resources will be expended to settle the obligation; and

» a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the obligation.

Provision for employee benefits
The provision for employee benefits represents annual leave and long service leave entitlements accrued for employees. The employee
benefit liability expected to be settled within twelve months after the end of the reporting period is recognised in current liabilities.

Employee benefits expenses in the Consolidated Statement of Comprehensive Income

Employee benefits expenses

31 Dec 20
$M

31 Dec 19
$M

86.3

115.7

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 20209. Taxation

a)
Income tax expense
Current income tax expense
Deferred income tax expense

Income tax expense in the Statement of Comprehensive Income

Income tax expense attributable to:
Profit from continuing operations

Aggregate income tax expense

b) Reconciliation of accounting proft to income tax expense

and current tax (asset) / liability

Net (loss)/profit for the year excluding income tax expense
Less: Trust loss/(profit) not subject to tax

(Loss)/profit which is subject to taxation at 30% tax rate
Tax effect of amounts not deductible/assessable in calculating
income tax expense:
Non-deductible revaluation items in the Company
Other non-assessable income
Equity accounted profits from joint ventures in the Company

Profit used to calculate effective tax rate

Other tax adjustments

Income tax expense

Effective tax rate

c) Current tax (liabilities) / assets
Opening balance at the beginning of the year
Income tax expense
Tax (receipts from)/payments made to tax authorities
Other deferred tax asset charged to income
Movements in employee benefits
Movements in provisions and accruals
Movements in reserves

Closing balance at the end of the year

d) Deferred tax assets
Employee benefits
Provisions and accruals
Right-of-use assets
Lease liabilities
Other

Net deferred tax asset

Movement in temporary differences during the year
Opening balance at the beginning of the year
Adoption of AASB 16
Income tax expense
Movement in reserves

Closing balance at the end of the year

31 Dec 20
Gross
$M

31 Dec 20
Tax impact
$M

31 Dec 19
Gross
$M

31 Dec 19
Tax impact
$M

—
9.1

9.1

(61.2)
43.1

(18.1)

28.4
—
(1.4)

8.9

0.2

9.1

31%

10.7
1.1

11.8

891.8
(866.0)

25.8

267.5
(259.8)

7.7

20.3
(5.6)
—

40.5

(1.0)

39.5

6.1
(1.7)
—

12.1

(0.3)

11.8

29%

31 Dec 20
$M

31 Dec 19
$M

(204.0)
143.7

(60.3)

94.5
—
(4.5)

29.7

0.6

30.3

2.2
(9.1)
(1.3)
(1.8)
12.5
—
(4.5)

(2.0)

5.0
2.0
(13.4)
16.6
(0.6)

9.6

20.5
—
(9.1)
(1.8)

9.6

0.8
(11.8)
10.2
1.5
(1.5)
0.9
2.1

2.2

17.5
2.0
(17.0)
19.0
(1.0)

20.5

20.1
1.2
(1.1)
0.3

20.5

BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTSTrust
Property investments are held by the Trust for the purposes of earning rental income. Under current tax legislation, the Trust is not liable
for income tax provided the taxable income of the Trust including realised capital gains is attributed in full to its securityholders each
financial year. Securityholders are subject to income tax at their own marginal tax rates on amounts attributable to them.

Company and other taxable entities
Income tax expense for the financial year is the tax payable on the current year’s taxable income. This is adjusted by changes in deferred
tax assets and liabilities attributable to temporary differences and for unused tax losses.

Deferred income tax liabilities and assets – recognition
Deferred income tax liabilities are recognised for all taxable temporary differences.

Deferred income tax assets are recognised for all deductible temporary differences, carried forward unused tax assets and unused tax
losses, to the extent it is probable that taxable profit will be available to utilise them. The carrying amount of deferred income tax assets
is reviewed and reduced to the extent that it is no longer probable that sufficient taxable profit will be available.

Deferred income tax liabilities and assets – measurement
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised
or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date.

Deferred income tax is provided on temporary differences at the reporting date between accounting carrying amounts and the tax cost
bases of assets and liabilities, other than for the following:

» Where taxable temporary differences relate to investments in subsidiaries, associates and interests in joint ventures:

› Deferred tax liabilities are not recognised if the timing of the reversal of the temporary differences can be controlled and it is

probable that the temporary differences will not reverse in the foreseeable future; and

› Deferred tax assets are not recognised if it is not probable that the temporary differences will reverse in the foreseeable future and

taxable profit will not be available to utilise the temporary differences.

Tax relating to equity items
Income taxes relating to items recognised directly in equity are recognised in equity and not in the Consolidated Statement of
Comprehensive Income.

Effective tax rate
The Board of Taxation has released a voluntary Tax Transparency Code (TTC). The TTC sets out a recommended set of principles and
minimum standards regarding the disclosure of tax information for businesses. GPT is committed to the TTC. The non-IFRS income tax
disclosures in note 9(b) include the recommended additional disclosures.

The Australian Accounting Standards Board have issued a Draft Appendix to the TTC outlining the method to calculate the effective tax
rate as shown in note 9(b), using:

» accounting profit before tax adjusted to exclude transactions which are not reflected in the calculation of income tax expense, including;

› Trust taxable income which is attributed in full to its securityholders; and

› Non tax related material items in the Company; and

» tax expense adjusted to exclude carry forward tax losses that have been recognised and prior year under/overstatements.

Attribution managed investment trust regime
The Trust made an election to be an attribution managed investment trust (AMIT). Under Australia’s taxation laws, unitholders of the Trust
pay income tax to the Federal Government on taxable income that is attributed to them as part of the Trust distribution process.

In the case where a GPT unitholder is an Australian resident, the unitholder pays tax on the taxable income attributed to them at their own
applicable tax rate. Where the unitholder is a non-resident, Managed Investment Trust (MIT) withholding tax applies at the rate of 15 per
cent where the place of payment is in a country that has an exchange of information agreement with Australia. If such an agreement
does not exist, a withholding tax rate of 30 per cent or 45 per cent applies, depending on the circumstances.

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020CAPITAL STRUCTURE
Capital is defined as the combination of securityholders’ equity, reserves and net debt (borrowings less cash). The Board is responsible
for monitoring and approving the capital management framework within which management operates. The purpose of the framework is
to safeguard GPT’s ability to continue as a going concern while optimising its debt and equity structure. GPT aims to maintain a capital
structure which includes net gearing levels within a range of 25 to 35 per cent that is consistent with a stable investment grade credit
rating in the “A category”.

At 31 December 2020, GPT is credit rated A (stable)/A2 (stable) by Standard and Poor’s (S&P) and Moody’s Investor Services (Moody’s)
respectively. The ratings are important as they reflect the investment grade credit rating of GPT which allows access to global capital
markets to fund its development pipeline and future acquisition investment opportunities. The stronger ratings improve both the
availability of capital, in terms of amount and tenor, and reduce the cost at which it can be obtained.

GPT is able to vary the capital mix by:

» issuing stapled securities;

» buying back stapled securities;

» activating the distribution reinvestment plan;

» adjusting the amount of distributions paid to stapled securityholders;

» selling assets to reduce borrowings; or

» increasing borrowings.

10. Equity and Reserves

a) Contributed equity

Other entities
stapled to the
Trust
$M

Trust
$M

Number

Ordinary stapled securities
Opening securities on issue and contributed equity at 1 January 2019
Securities issued – institutional placement
Security Purchase Plan
Transaction costs

1,804,890,426
131,795,717
11,243,173
—

7,825.7
794.3
66.3
(13.1)

Closing securities on issue and contributed equity at 31 December 2019 1,947,929,316

8,673.2

Opening securities on issue and contributed equity at 1 January 2020

1,947,929,316

8,673.2

Closing securities on issue and contributed equity at 31 December 2020 1,947,929,316

8,673.2

325.9
5.7
0.5
(0.1)

332.0

Total
$M

8,151.6
800.0
66.8
(13.2)

9,005.2

Ordinary stapled securities are classified as equity and recognised at the fair value of the consideration received by GPT. Any transaction
costs arising on the issue and buy back of ordinary securities are recognised directly in equity as a reduction, net of tax, of the
proceeds received.

b) Treasury securities
Treasury securities are securities in GPT that the Group has purchased, that are held by GPT Group Stapled Security Plan Trust for the
purpose of issuing securities under various employee security schemes. Refer to note 20 for further information. Securities issued to
employees are recognised on a first-in-first-out basis.

Opening balance 1 January 2019
Acquisition of securities by the GPT Group Stapled Securities Trust
Employee securities issued

Balance at 31 December 2019

Opening balance 1 January 2020
Acquisition of securities by the GPT Group Stapled Securities Trust
Employee securities issued

Balance at 31 December 2020

Number of
securities

59,028
774,921
(825,057)

8,892

8,892
869,071
(877,963)

—

—
4.8
(4.8)

—

—
4.0
(4.0)

—

BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTSc) Reserves

Foreign currency
translation reserve

Cash flow
hedge reserve

Cost of
hedging reserve

Employee incentive
scheme reserve

Total reserves

Other
entities
stapled
to GPT
$M

18.3
—

—

Trust
$M

(26.4)
—

—

Trust
$M

(18.5)
—

16.3

—

Balance at 1 January 2019
Movement in hedging reserve
Movement in fair value of
cash flow hedges
Security-based payment
transactions, net of tax

Balance at 31 December 2019

(26.4)

18.3

(2.2)

Balance at 1 January 2020
Movement in hedging reserve
Movement in fair value of
cash flow hedges
Security-based payment
transactions, net of tax

(26.4)
—

18.3
—

—

(2.2)
—

(1.7)

—

Balance at 31 December 2020

(26.4)

18.3

(3.9)

Other
entities
stapled
to GPT
$M

—
—

—

—
—

—

Trust
$M

11.4
(6.3)

—

5.1

5.1
(22.4)

—

(17.3)

Other
entities
stapled
to GPT
$M

Trust
$M

—
—

—

—
—

—

—
—

—

—
—

—

Other
entities
stapled
to GPT
$M

19.6
—

Other
entities
stapled
to GPT
$M

37.9
—

Trust
$M

(33.5)
(6.3)

—

16.3

—

(0.6)

19.0

—

(23.5)

19.0
—

(23.5)
(22.4)

(0.6)

37.3

37.3
—

—

(1.7)

—

(17.7)

—

(17.7)

1.3

(47.6)

19.6

Nature and purpose of reserves
Foreign currency translation reserve
The reserve is used to record exchange differences arising on translation of foreign controlled entities and associated funding of foreign
controlled entities. The movement in the reserve is recognised in net profit when the investment in the foreign controlled entity is disposed.

Cash flow hedge reserve
The reserve records the portion of the unrealised gain or loss on a hedging instrument in a cash flow hedge that is determined to be an
effective hedge relationship inclusive of share of cash flow hedge reserve of equity accounted investments.

Cost of hedging reserve
The reserve records the changes in the fair value of the currency basis that is part of cross currency interest rate swaps used to hedge
foreign currency borrowings, but is excluded from the hedge designations. This reserve is inclusive of share of cost of hedging reserve of
equity accounted investments. Refer to note 14 for further details.

Employee incentive scheme reserve
The reserve is used to recognise the fair value of equity-settled security based payments provided to employees, including key
management personnel, as part of their remuneration. Refer to note 20 for further details of the security based payments.

d) Retained earnings / accumulated losses

Balance at 1 January 2019
Net profit for the financial year
Less: Distributions paid/payable to ordinary stapled securityholders
Reclassification of employee incentive security scheme reserve to
retained earnings/accumulated losses

Balance at 31 December 2019

Balance at 1 January 2020
Net (loss)/profit for the financial year
Less: Distributions paid/payable to ordinary stapled securityholders
Reclassification of employee incentive security scheme reserve to
retained earnings/accumulated losses

Balance at 31 December 2020

Note

Trust
$M

2,791.1
850.4
(514.3)

(3.7)

3,123.5

3,123.5
(240.1)
(181.2)

Other entities
stapled to GPT
$M

(845.5)
29.6
—

Total
$M

1,945.6
880.0
(514.3)

—

(3.7)

(815.9)

2,307.6

(815.9)
27.0
—

2,307.6
(213.1)
(181.2)

(1.3)

—

(1.3)

2,700.9

(788.9)

1,912.0

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 202011. Earnings per stapled security

31 Dec 20
Cents

31 Dec 19
Cents

a) Attributable to ordinary securityholders of the Trust

Basic

Diluted

Basic

Diluted

Total basic and diluted earnings per security attributable to ordinary
securityholders of the Trust

(12.3)

45.3

45.2

b) Attributable to ordinary stapled securityholders of the GPT Group

Total basic and diluted earnings per security attributable to stapled
securityholders of the GPT Group

(10.9)

46.9

46.8

The earnings and weighted average number of ordinary securities (WANOS) used in the calculations of basic and diluted earnings per
ordinary stapled security are as follows:

c) Reconciliation of earnings used in calculating earnings

per ordinary stapled security
Basic and diluted earnings of the Trust
Basic and diluted earnings of the Company

Basic and diluted earnings of the GPT Group

d) Weighted average number of ordinary securities
WANOS used as the denominator in calculating basic earnings per
ordinary stapled security
Performance security rights at weighted average basis 1

WANOS used as the denominator in calculating diluted earnings per
ordinary stapled security

31 Dec 20
$M

31 Dec 19
$M

(240.1)
27.0

(213.1)

(240.1)
27.0

(213.1)

850.4
29.6

880.0

850.4
29.6

880.0

31 Dec 20
Millions

31 Dec 19
Millions

1,947.9

1,947.9
—

1,947.9

1,878.1

1,878.1
1.8

1,879.9

1. Performance security rights granted under the employee incentive schemes are only included in dilutive earnings per ordinary stapled security where the performance hurdles are

met as at the year end.

Calculation of earnings per stapled security
Basic earnings per stapled security is calculated as net profit/loss attributable to ordinary stapled securityholders of GPT, divided by
the weighted average number of ordinary stapled securities outstanding during the financial year which is adjusted for bonus elements
in ordinary stapled securities issued during the financial year. Diluted earnings per stapled security is calculated as net profit/loss
attributable to ordinary stapled securityholders of GPT divided by the weighted average number of ordinary stapled securities and
dilutive potential ordinary stapled securities. Where there is no difference between basic earnings per stapled security and diluted
earnings per stapled security, the term basic and diluted earnings per stapled ordinary security is used.

Distributions paid / payable
2020
6 month period ended 30 June 2020
6 month period ended 31 December 2020 1

Total distributions paid/payable for the year

2019
6 month period ended 30 June 2019
6 month period ended 31 December 2019

Total distributions paid/payable for the year

Cents per
stapled security

Total amount
$M

9.30
—

9.30

1 3.1 1
13.37

26.48

181.2
—

181.2

253.9
260.4

514.3

1. The December 2020 half yearly distribution of 13.2 cents per security, representing 100 per cent of free cash flow, was declared on 15 February 2021 and is expected to be paid on
26 February 2021. The distribution is 1.3 per cent lower than the 31 December 2019 distribution of 13.37 cents per security as a result of the impact of COVID-19 partially offset by a
reduction in maintenance capex and lease incentives. The December 2019 payout ratio was 103.4 per cent of AFFO under GPT’s previous distribution policy.

13. Borrowings

Current borrowings at amortised cost – unsecured 1
Current borrowings at amortised cost – secured

Current borrowings

Non-current borrowings at amortised cost – unsecured
Non-current borrowings at fair value through profit and loss – unsecured 2
Non-current borrowings at amortised cost – secured

Non‑current borrowings

Total borrowings 3 – carrying amount

Total borrowings 4 – fair value

31 Dec 20
$M

31 Dec 19
$M

514.0
5.0

519.0

1,186.2
2,294.0
88.2

3,568.4

4,087.4

473.4
4.7

478.1

1,192.4
2,138.6
88.4

3,419.4

3,897.5

4,1 24.1

3,994.1

1. Represents GPT’s commercial paper program which is an uncommitted line with a maturity period of generally three months or less and is classified as current borrowings.

These drawings are in addition to GPT’s committed facilities but may be refinanced by non-current undrawn bank loan facilities.

2. Cumulative fair value movements are shown in the following table.
3. Including unamortised establishment costs, fair value and other adjustments.
4. For the majority of borrowings, the carrying amount is a reasonable approximation of fair value. Where material difference arises, the fair value is calculated using market observable

inputs (level 2) and unobservable inputs (level 3). This excludes unamortised establishment costs.

All borrowings with maturities greater than 12 months after reporting date are classified as non-current liabilities.

When the terms of a financial liability are modified, AASB 9 Financial Instruments requires an entity to perform an assessment to
determine whether the modified terms are substantially different from the existing financial liability. Where a modification is substantial,
it will be accounted for as an extinguishment of the original financial liability and a recognition of a new financial liability. Where the
modification does not result in extinguishment, the difference between the existing carrying amount of the financial liability and the
modified cash flows discounted at the original effective interest rate is recognised in the Consolidated Statement of Comprehensive
Income as a gain / loss on modification of financial liabilities. GPT management has assessed the modification of terms requirements
within AASB 9 and have concluded that these will not have a material impact for the Group.

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020

The following table outlines the cumulative amount of fair value movements that are included in the carrying amount of borrowings in the
Consolidated Statement of Financial Position.

Nominal amount
Unamortised borrowing costs

Amortised cost
Cumulative fair value movements

Carrying amount

31 Dec 20
$M

31 Dec 19
$M

1,907.4
(6.0)

1,901.4
392.6

2,294.0

1,715.7
(6.0)

1,709.7
428.9

2,138.6

Carrying value of cross currency interest rate swaps hedging the above foreign currency borrowings is reflected in the Consolidated
Statement of Financial Position within derivative assets totalling $368.9 million (December 2019: $425.3 million) and within derivative
liabilities totalling $17.3 million (December 2019: nil).

The maturity profile of borrowings as at 31 December 2020 is as follows:

Due within one year
Due between one and five years
Due after five years

Cash and cash equivalents

Total financing resources available at the end of the year
Less: commercial paper 2
Less: cash and cash equivalents held for the AFSL

Total financing resources available at the end of the year

Total
facility 1,2,3
$M

519.6
2,599.8
2,501.5

Used
facility 1
$M

519.0
758.8
2,401.5

5,620.9

3,679.3

Unused
facility 2,3
$M

0.6
1,841.0
100.0

1,941.6
372.5

2,314.1
(514.0)
(10.0)

1,790.1

1. Excluding unamortised establishment costs, fair value and other adjustments and $10.2 million bank guarantee facilities and its $2.1 million utilisation. This reflects the contractual

cash flows payable on maturity of the borrowings taking into account historical exchange rates under cross currency interest rate swaps entered into to hedge the foreign
currency borrowings.

2. GPT’s commercial paper program is an uncommitted line with a maturity period of generally three months or less and is classified as current borrowings. These drawings are in

addition to GPT’s committed facilities but may be refinanced by non-current undrawn bank loan facilities and are therefore excluded from available liquidity.

3. Including $100 million of forward starting facilities available to GPT.

Cash and cash equivalents includes cash on hand, cash at bank and short term money market deposits.

Debt covenants
GPT’s borrowings are subject to a range of covenants, according to the specific purpose and nature of the loans. Most bank facilities
include one or more of the following covenants:

» Gearing: total debt must not exceed 50 per cent of adjusted total tangible assets; and

» Interest coverage: the ratio of earnings before interest and taxes (EBIT) to finance costs on borrowings is not to be less than 2 times.

A breach of these covenants may trigger consequences ranging from rectifying and/or repricing to repayment of outstanding amounts.
GPT performed a review of debt covenants as at 31 December 2020 and no breaches were identified.

BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTS

14. Financial Risk Management
The GPT Board approve GPT’s treasury policy which:

» establishes a framework for the management of risks inherent to the capital structure;

» defines the role of GPT’s treasury; and

» sets out the policies, limits, monitoring and reporting requirements for cash, borrowings, liquidity, credit risk, foreign exchange, interest

rate and other derivative instruments.

a) Derivatives
As part of normal business operations, GPT is exposed to financial market risks which are principally interest rate risk on borrowings and
foreign exchange rate risk on foreign currency borrowings. GPT manages these risks through the use of derivative instruments including
interest rate swaps (fixed to floating, floating to fixed and floating to floating swaps), cross currency interest rate swaps and option based
derivatives. Regular coupons under these instruments are reported in finance costs in the Consolidated Statement of Comprehensive
Income along with the interest cost on borrowings to which it relates.

Derivatives are carried in the Consolidated Statement of Financial Position at fair value and classified according to their contractual
maturities. If they do not qualify for hedge accounting, changes in fair value (including amortisation of upfront payment including
premiums) are recognised in net gain / loss on fair value movements of derivatives in the Consolidated Statement of Comprehensive
Income. Where derivatives qualify for hedge accounting and are designated in hedge relationships, the recognition of any gain or loss
depends on the nature of the item being hedged. Refer to note 14(b) on hedge accounting. All of GPT’s derivatives were valued using
market observable inputs (level 2). For additional fair value disclosures refer to note 15.

Derivative Assets
Interest Rate Swaps – AUD
Cross Currency Interest Rate Swaps – fair value hedges
Cross Currency Interest Rate Swaps – fair value and cash flow hedges

Total Derivative Assets

Derivative Liabilities
Interest Rate Swaps – AUD
Cross Currency Interest Rate Swaps – fair value hedges
Cross Currency Interest Rate Swaps – fair value and cash flow hedges

Total Derivative Liabilities

Net Derivative Assets
Net Interest Rate Swaps – AUD

Net Cross Currency Interest Rate Swaps

31 Dec 20
$M

31 Dec 19
$M

1 11 .4
34.5
334.4

480.3

96.3
1 7.1
0.2

1 13 .6

366.7
1 5.1

351.6

1 1 2.6
45.3
380.0

537.9

98.2
—
—

98.2

439.7
1 4.4

425.3

GPT enters into ISDA (International Swap Derivatives Association) Master Agreements with its derivative counterparties. Under the
terms of these agreements, where certain credit events occur, there is a right to set-off the position owing/receivable to a single
counterparty to a net position as long as all outstanding derivatives with that counterparty are terminated. As GPT does not presently
have a legally enforceable right to set-off, these amounts have not been offset in the Consolidated Statement of Financial Position. In the
event a credit event occurred, the ISDA Master Agreement would have the effect of netting, allowing a reduction to derivative assets and
derivative liabilities of the same amount of $110.7 million (2019: $94.0 million).

b) Hedge Accounting
GPT’s objective is to manage the risk of volatility in FFO and NTA and whilst economic hedges exist to manage its financial market
risks, GPT has elected to apply hedge accounting only in relation to foreign currency borrowings. Foreign exchange and interest rate
risk arising from foreign currency borrowings is managed with cross currency interest rate swaps which convert foreign currency fixed
interest rate cash flows into Australian dollar floating interest rate cash flows.

At inception of the hedge relationship, GPT designates and documents the relationship between the hedging instrument and hedged
item and the proposed effectiveness of the risk management objective the hedge relationship addresses. GPT fully hedges 100% of
its foreign currency exposure in respect of foreign currency borrowings with cross currency interest rate swaps and therefore applies
a hedge ratio of 1:1. This means that whilst there are fair value movements from period to period, there is 100% matching of cash flows,
resulting in nil fair value movements over the duration of the borrowings nor FFO impact in any period. On an ongoing basis, GPT
determines and documents its assessment of prospective hedge effectiveness of all hedge relationships.

Cross currency interest rate swaps hedging foreign currency borrowings are designated in either dual fair value and cash flow hedges or
fair value hedges only.

100

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020
Fair value hedges
A fair value hedge is a hedge of the exposure to changes in fair value of the underlying item (foreign currency borrowings) that is
attributable to a particular risk (movements in foreign benchmark interest rates and if applicable, foreign exchange rates). All changes
in the fair value of the foreign currency borrowings relating to the risk being hedged are recognised in the Consolidated Statement
of Comprehensive Income together with the changes in the fair value of cross currency interest rate swaps with the net difference
reflecting the hedge ineffectiveness.

Cash flow hedges
A cash flow hedge is a hedge of the exposure to variability in cash flows attributable to a particular risk (movements in foreign
exchange rates) associated with a liability (foreign currency borrowings). The portion of the fair value gain or loss on the hedging
instrument that is effective (that which offsets the movement on the hedged item attributable to foreign exchange movements) is
recognised in Other Comprehensive Income and accumulated in the cash flow hedge reserve in equity and any ineffective portion is
recognised as net impact of foreign currency borrowings and associated hedging gain or loss directly in the Consolidated Statement
of Comprehensive Income.

Currency basis
A component of the cross currency interest rate swap is the currency basis. This is a liquidity premium that is charged for exchanging
different currencies, and changes over time. Where currency basis have been included in fair value hedge designations, movement in
currency basis are recognised in the Consolidated Statement of Comprehensive Income. In all other cases, currency basis have been
excluded from GPT’s fair value hedge designation with movements recognised in Other Comprehensive Income and accumulated in the
cost of hedging reserve in equity.

Hedging Instruments
The following table shows the nominal amount of derivatives designated in cash flow and/or fair value hedge relationships in time bands
based on the maturity of each derivative.

Cross currency interest rate swaps
USD exposure
AUD nominal amount
Average receive fixed interest rate
Average contracted FX rate (AUD/USD)

HKD exposure
AUD nominal amount
Average receive fixed interest rate
Average contracted FX rate (AUD/HKD)

31 Dec 20

31 Dec 19

Less than
1 year
$M

1 to 5
years
$M

Over
5 years
$M

Total
$M

Less than
1 year
$M

1 to 5
years
$M

Over
5 years
$M

Total
$M

—
—
—

145.8
3.6%
1.0283

1,311.9
3.8%
0.8042

1,457.7

—
—
—

449.7
2.9%
6.2847

449.7

—
—
—

1,457.7

258.0

—
—
—

1,457.7
3.8%
0.8266

258.0
3.4%
6.7951

The following table shows the impact on the Consolidated Statement of Comprehensive Income relating to hedge ineffectiveness of fair
value hedges and the impact on Other Comprehensive Income relating to movements in cash flow hedges and the cost of hedging reserve.

Fair Value Hedge Movements in Net profit
Fair value movements on foreign borrowings
Movement in Fair value hedges

Net loss from fair value hedge ineffectiveness in Net profit

Movement in Hedge Reserves in OCI
Movement in Cash flow hedge reserve
Movement in Cost of hedging reserve
Share of movement in Hedge reserves in equity accounted investments

Net (decrease)/increase in Hedge Reserves in OCI

In these hedge relationships, the main sources of ineffectiveness are:

31 Dec 20
$M

31 Dec 19
$M

36.3
(51.4)

(15.1)

(1.7)
(20.5)
(1.9)

(24.1)

(161.6)
150.8

(10.8)

15.6
(5.7)
0.1

10.0

» the effect of the counterparty and GPT’s own credit risk on the fair value of the swaps, which is not reflected in the fair value of the

hedged item; and

» changes in Australian and foreign swap interest rates which will impact the fair value of the Australian dollar margin and implied foreign

currency margin respectively.

101

c)
GPT’s primary interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. This mainly arises from borrowings. Interest rate risk inherent on borrowings issued at floating rates is managed
by entering into interest rate swaps that are used to convert a portion of floating interest rate borrowings to fixed interest rates, which
reduces GPT’s exposure to interest rate volatility.

The following table provides a summary of GPT’s gross interest rate risk exposure as at 31 December 2020 on interest bearing
borrowings as well as the net effect of interest rate risk management transactions. This excludes unamortised establishment costs and
fair value and other adjustments.

Fixed Rate Exposure
Fixed rate borrowings
Borrowings hedged via interest rate swaps

Effective Fixed Rate Borrowings

Floating Rate Exposure
Floating rate borrowings
Borrowings hedged via interest rate swaps

Effective Floating Rate Borrowings

31 Dec 20
$M

31 Dec 19
$M

3,006.4
247.6

3,254.0

672.9
(247.6)

425.3

2,655.7
159.3

2,815.0

794.1
(159.3)

634.8

Interest rate risk – sensitivity analysis
The impact on interest expense of a 0.25 per cent increase or decrease in market interest rates is shown below. Finance costs are
sensitive to movements in market interest rates on floating rate borrowings (net of any derivatives).

Impact on Statement of Comprehensive Income

Increase in interest rates of 0.25% (2019: 1%)
Decrease in interest rates of 0.25% (2019: 1%)

d) Liquidity risk
Liquidity risk is the risk that GPT, as a result of its operations:

» will not have sufficient funds to settle a transaction on the due date;

» will be forced to sell financial assets at a value which is less than what they are worth; or

» may be unable to settle or recover a financial asset at all.

GPT manages liquidity risk by:

» maintaining sufficient cash;

» maintaining an adequate amount of committed credit facilities;

31 Dec 20
$M

31 Dec 19
$M

(1.1)
1.1

(6.3)
6.3

» maintaining a minimum liquidity buffer in cash and surplus committed facilities for the forward rolling twelve month period;

» minimising debt maturity concentration risk by diversifying sources and spreading maturity dates of committed credit facilities and

maintaining a minimum weighted average debt maturity of 4 years; and

» maintaining the ability to close out market positions.

102

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020
The following table provides an analysis of the undiscounted contractual maturities of liabilities which forms part of GPT’s assessment of
liquidity risk:

31 Dec 20

31 Dec 19

1 year
or less
$M

Over 1
year to
2 years
$M

Over 2
years to
5 years
$M

Over 5
years
$M

Total
$M

1 year
or less
$M

Over 1
year to
2 years
$M

Over 2
years to
5 years
$M

Over 5
years
$M

Total
$M

Liabilities
Non-derivatives
Payables
Borrowings
Lease liabilities
Projected finance cost
from borrowings 1

Derivatives
Projected finance cost from
derivative liabilities 1,2

180.5
519.0
7.5

—
50.0
8.5

—

180.5
708.8 2,401.5 3,679.3
55.1
12.8

26.3

456.4
478.2
6.8

—
88.5
7.8

—
762.0
26.9

—

456.4
2,121.1 3,449.8
60.6

1 9.1

90.1

90.6

245.6

381.9

808.2

98.1

94.1

256.5

386.1

834.8

35.6

26.9

30.2

—

92.7

28.2

30.5

61.3

1.2

121.2

Total liabilities

832.7

176.0

1,010.9 2,796.2 4,815.8

1,067.7

220.9

1,106.7 2,527.5 4,922.8

Less cash and cash equivalents

372.5

—

372.5

104.2

—

104.2

Total liquidity exposure

460.2

176.0

1,010.9 2,796.2 4,443.3

963.5

220.9

1,106.7 2,527.5 4,818.6

Projected reduction to finance
costs from derivative assets 2

38.0

17.5

33.7

13.8

103.0

31.5

30.5

24.5

24.8

1 1 1 .3

Net liquidity exposure

422.2

158.5

977.2 2,782.4 4,340.3

932.0

190.4

1,082.2 2,502.7 4,707.3

1. Projection is based on the likely outcome of contracts given the interest rates, margins, forecast interest rate forward curves as at 31 December 2020 and 31 December 2019 up

until the contractual maturity of the contract. The projection is based on future non-discounted cash flows and does not ascribe any value to optionality on any instrument which
may be included in the current market values. Projected interest on foreign currency borrowings is shown after the impact of associated hedging.

2. In accordance with AASB 7, the future value of contractual cash flows of non-derivative and derivative liabilities only is to be included in liquidity risk disclosures. As derivatives are
exchanges of cash flows, the positive cash flows from derivative assets have been disclosed separately to provide a more meaningful analysis of GPT’s net liquidity exposure. The
methodology used in calculating projected interest income on derivative assets is consistent with the above liquidity risk disclosures.

e) Refinancing risk
Refinancing risk is the risk that credit is unavailable or available at unfavourable interest rates and credit market conditions resulting in
an unacceptable increase in GPT’s interest cost. Refinancing risk arises when GPT is required to obtain debt to fund existing and new
debt positions. GPT manages this risk by spreading sources, counterparties and maturities of borrowings in order to minimise debt
concentration risk, allow averaging of credit margins over time and reducing refinance amounts.

As at 31 December 2020, GPT’s exposure to refinancing risk can be monitored by the spreading of its contractual maturities on
borrowings in the liquidity risk table above or with the information in note 13.

f) Foreign exchange risk
Foreign exchange risk refers to the risk that the value of a financial commitment, asset or liability will fluctuate due to changes in foreign
exchange rates. GPT’s foreign exchange risk arises primarily from:

» firm commitments of highly probable forecast transactions for receipts and payments settled in foreign currencies or with prices

dependent on foreign currencies; and

» investments in foreign assets.

The foreign exchange risk arising from borrowings denominated in foreign currency is managed with cross currency interest rate swaps
which convert foreign currency exposures into Australian dollar exposures. Sensitivity to foreign exchange is deemed insignificant.

103

BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTSForeign currency assets and liabilities
The following table shows the Australian dollar equivalents of amounts within the Consolidated Statement of Financial Position which are
denominated in foreign currencies.

Assets
Derivative financial instruments

Liabilities
Derivative financial instruments
Borrowings 1

1. Excluding unamortised establishment costs.

United States Dollars

Hong Kong Dollars

31 Dec 20
$M

31 Dec 19
$M

31 Dec 20
$M

31 Dec 19
$M

306.9

—
1,796.5

1,796.5

355.0

—
1,821.9

1,821.9

62.0

17.3
503.5

520.8

70.3

—
322.7

322.7

g) Credit risk
Credit risk is the risk that a contracting entity will not complete its obligations under a contractual agreement, resulting in a financial loss
to GPT. GPT has exposure to credit risk on all financial assets included on the Consolidated Statement of Financial Position.

GPT manages this risk by:

» establishing credit limits for financial institutions and monitoring credit exposures for customers to ensure that GPT only trades and

invests with approved counterparties;

» investing and transacting derivatives with multiple counterparties that have a minimum long term credit rating of A- from S&P, or

equivalent if an S&P rating is not available, minimising exposure to any one counterparty;

» providing loans into joint ventures, associates and third parties, only where GPT is comfortable with the underlying property exposure

within that entity;

» regularly monitoring loans and receivables balances;

» regularly monitoring the performance of its associates, joint ventures and third parties; and

» obtaining collateral as security (where appropriate).

Receivables are reviewed regularly throughout the year. A provision for doubtful debts is recognised at an amount equal to lifetime ECL.
Refer to note 4(b) for the calculation of lifetime ECL. GPT’s policy is to hold collateral as security over tenants via bank guarantees (or less
frequently, collateral such as bond deposits or cash).

The maximum exposure to credit risk as at 31 December 2020 is the carrying amounts of financial assets recognised on GPT’s
Consolidated Statement of Financial Position. For more information refer to note 4.

104

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 202015. Other Fair Value Disclosures
Information about how the fair value of financial instruments is calculated and other information required by the accounting standards,
including the valuation process, critical assumptions underlying the valuations and information on sensitivity are disclosed in the
following table:

a) Fair value measurement, valuation techniques and inputs

Class of
assets / liabilities

Fair value
hierarchy 1

Valuation
technique

Derivative financial
instruments

Level 2

DCF
(adjusted for
counterparty credit
worthiness)

Inputs used to
measure fair value

» Interest rates

» Basis

» CPI

» Volatility

» Foreign exchange rates

Unobservable inputs
31 Dec 2020

Unobservable inputs
31 Dec 2019

Not applicable – all inputs are
market observable inputs

Foreign currency
borrowings

Level 2

DCF

» Interest rates

» Foreign exchange rates

Not applicable – all inputs are
market observable inputs

1. Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 — inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 — inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Counterparty
credit worthiness

Credit value adjustments are applied to derivatives assets based on that counterparty’s credit risk using the
observable credit default swaps curve as a benchmark for credit risk.

Debit value adjustments are applied to derivatives liabilities based on GPT’s credit risk using GPT’s credit default
swaps curve as a benchmark for credit risk.

OTHER DISCLOSURE ITEMS
16. Cash Flow Information

a) Cash flows from operating activities
Reconciliation of net (loss)/profit after tax to net cash inflows from operating activities:

Net (loss)/profit for the year
Fair value loss/(gain) on investment properties
Fair value loss on derivatives
Net impact of foreign currency borrowings and associated hedging loss
Gain on financial liability at amortised cost
Impairment expense/(reversal)
Share of after tax loss/(profit) of equity accounted investments (net of distributions)
Depreciation and amortisation
Non-cash employee benefits – security based payments
Non-cash revenue/expense adjustments
Profit on sale of inventories
Proceeds from sale of inventories
Payment for inventories
Movements in working capital and reserves (net of impairment)
Net foreign exchange gain
Other

Net cash inflows from operating activities

31 Dec 20
$M

31 Dec 19
$M

(213.1)
365.6
39.6
15.1
(2.1)
5.7
242.7
8.7
(0.4)
36.7
(0.2)
1.2
(10.0)
(2.1)
(0.4)
3.2

490.2

880.0
(310.8)
74.4
10.8
(2.5)
(12.1)
(97.0)
6.9
11.0
29.1
(5.8)
58.6
(21.0)
(10.8)
—
3.8

614.6

105

1 January 2019
Cash inflow/(outflow)
Foreign exchange adjustments
Opening balance adjustment on adoption of AASB 16
New leases and modification of lease
Other non-cash movements

31 December 2019

1 January 2020
Cash inflow/(outflow)
Foreign exchange adjustments
New leases and modification of lease
Other non-cash movements

31 December 2020

17. Lease Revenue

Segment Result
Lease revenue
Recovery of operating costs
Share of rent from investment properties in
equity accounted investments

Less:
Share of rent from investment properties in equity
accounted investments
Amortisation of lease incentives and costs
Straightlining of leases
Eliminations of intra-group lease payments
Impairment loss on trade and other receivables

Consolidated Statement of Comprehensive Income
Rent from investment properties

Cash
$M

58.7
45.5
—
—
—
—

104.2

104.2
268.3
—
—
—

372.5

Lease
liabilities
$M

Borrowings
$M

Total
net debt
$M

—
(7.8)
—
34.5
32.3
1.6

60.6

60.6
(8.5)
—
1.5
1.5

55.1

4,114.9
(380.2)
161.6
—
—
1.2

3,897.5

3,897.5
225.2
(36.3)
—
1.0

3,853.9

4,087.4

3,770.0

31 Dec 20

31 Dec 19

Retail

Office Logistics

Total

Retail

Office Logistics

Total

216.1
69.9

1 33.1
27.4

158.7
11.2

507.9
108.5

291.6
83.6

142.0
31.0

137.3
9.7

570.9
124.3

1.3

113.0

—

114.3

1.1

93.1

—

94.2

287.3

273.5

169.9

730.7

376.3

266.1

147.0

789.4

(114.3)

(56.9)
5.4
(1.5)
62.4

625.8

(94.2)

(47.8)
6.6
(1.1)
0.9

653.8

Rent from investment properties
Rent from investment properties in the Consolidated Statement of Comprehensive Income is recognised and measured in accordance
with AASB 16 Leases. This revenue is recognised on a straight line basis for the minimum contracted rent over the lease term with an
asset recognised as a component of investment properties relating to the fixed increases in operating lease rentals in future periods.
When GPT provides lease incentives to tenants, these costs are amortised against lease income on a straight line basis. Contingent
rental income is recognised as revenue in the period in which it is earned.

In addition to revenue generated directly from the lease, rent from investment properties includes non-lease revenue earned from
tenants, predominately in relation to recovery of asset operating costs, which is recognised and measured under AASB 15 Revenue from
Contracts with Customers.

Management has assessed if a rent waiver constitutes a lease modification under AASB 16 Leases and concluded that where rent
waivers relate to periods after the execution of an agreement with the tenant, this constitutes a lease modification. Rent waivers relating
to periods prior to the execution of an agreement are treated as write-offs under AASB 9 Financial Instruments where the rent waiver
offsets a receivable from the tenant (see note 4). Waivers which have been reflected on invoices issued to tenants and which are not
relating to previous outstanding debtors, have been shown as a reduction to rent from investment properties on the Consolidated
Statement of Financial Performance.

106

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 202018. Commitments

a) Capital expenditure commitments
Commitments arising from contracts principally relating to the purchase and development of investment properties contracted for at
balance date but not recognised on the Consolidated Statement of Financial Position.

Retail
Office
Logistics
Properties under development
Corporate

Total capital expenditure commitments

31 Dec 20
$M

31 Dec 19
$M

22.0
97.4
17.1
42.8
0.8

180.1

31.8
86.1
12.5
188.5
3.7

322.6

In addition to the table above, during the year GPT contracted to purchase a logistics development site in Wacol, Brisbane as part of the
QuadReal joint venture partnership. Settlement is expected to occur in February 2021 for a total of $6.3 million (GPT’s 50% ownership).
This acquisition will be recognised as an equity accounted investment.

In 2019 GPT contracted to purchase a logistics development site in Kemps Creek, Sydney and paid a deposit of $6.8 million with $61.1
million committed to be paid by GPT at settlement in 2021.

In 2019, GPT has also contracted to purchase a logistics development site in Truganina, Melbourne at 865 Boundary Road for which GPT
paid a deposit of $5.1 million, with $28.9 million committed to be paid at settlement, which is expected to occur in 2022.

b) Commitments relating to equity accounted investments
GPT’s share of equity accounted investments’ commitments at balance date are set out below:

Capital expenditure

Total joint ventures and associates' commitments

31 Dec 20
$M

31 Dec 19
$M

76.1

133.0

19. Contingent Liabilities
A contingent liability is a liability that is not sufficiently certain to qualify for recognition as a provision where uncertainty may exist
regarding the outcome of future events.

As at 31 December 2020, GPT has no material contingent liabilities.

20. Security Based Payments
GPT currently has four employee security schemes – the General Employee Security Ownership Plan (GESOP), the Broad Based
Employee Security Ownership Plan (BBESOP), the Deferred Short Term Incentive Plan (DSTI) and the Long Term Incentive (LTI) Scheme.
No rights were granted in relation to these plans during the year.

a) GESOP
The Board believes in creating ways for employees to build an ownership stake in the business. As a result, the Board introduced the
GESOP in March 2010 for individuals who do not participate in the LTI.

Under the plan individuals who participate receive an additional benefit equivalent to 10 per cent of their short term incentives (STIC).
The amount after the deduction of income tax is invested in GPT securities to be held for a minimum of one year. The cost of this benefit
is recognised as an expense in the Consolidated Statement of Comprehensive Income.

b) BBESOP
Under the plan individuals who are not eligible to participate in any other employee security scheme may receive $1,000 worth of GPT
securities or $1,000 cash if GPT achieves at least target level performance. Securities must be held for the earlier of three years or the
end of employment. The cost of this benefit is recognised as an in the Consolidated Statement of Comprehensive Income.

c) DSTI
Since 2014, STIC is delivered to the senior executives as 50 per cent in cash and 50 per cent in GPT stapled securities (a deferred
component). The deferred component is initially awarded in the form of performance rights, with the rights converting to restricted GPT
stapled securities to the extent the performance conditions are met. For the 2016 and any subsequent plans, all the awarded stapled
securities will vest one year after conversion, subject to continued employment up to the vesting date.

107

BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTSd) LTI
At the 2009 AGM, GPT securityholders approved the introduction of a LTI plan based on performance rights. Any subsequent
amendments to the LTI plan have been approved by GPT securityholders.

The LTI plan covers each three year period. Awards under the LTI to eligible participants are in the form of performance rights which
convert to GPT stapled securities for nil consideration if specified performance conditions for the applicable three year period are
satisfied. Please refer to the Remuneration Report for detail on the performance conditions.

The Board determines those executives eligible to participate in the plan and, for each participating executive, grants a number of
performance rights calculated as a percentage of their base salary divided by GPT’s volume weighted average price (VWAP) for the final
month of the year preceding the plan launch.

Fair value of performance rights issued under DSTI and LTI
The fair value of the performance rights is recognised as an employee benefit expense with a corresponding increase in the employee
security scheme reserve in equity. For LTI, the fair value is measured at grant date. For DSTI, the fair value is measured at each reporting
date until the performance rights are converted to securities. Total share based payment expense based on the fair value is recognised
over the period from the grant date of the performance rights to the vesting date.

Non-market vesting conditions are included in assumptions about the number of rights that are expected to be vested. At each
reporting date, GPT revises its estimate of the number of performance rights that are expected to be exercisable and the employee
benefit expense recognised each reporting period takes into account the most recent estimate. The impact of the revision to original
estimates, if any, is recognised in the Consolidated Statement of Comprehensive Income with a corresponding adjustment to equity.

Management has assessed the number of rights that are expected to vest for the 2018 and 2019 LTI plans in relation to non-market
vesting conditions (Total Return) as a result of the impacts of the COVID-19 pandemic and determined that no rights are expected to
vest. This has decreased from December 2019 where the 2018 plan was expected to vest at 100% and the 2019 plan was expected to
vest at 50% for non-market conditions, resulting in the reversal of prior period amortisation in the current period.

Fair value of the performance rights issued under LTI is determined using the Monte Carlo simulation and the Black Scholes
methodologies. Fair value of the performance rights issued under DSTI is determined using the security price.

e) Summary table of all employee security schemes

Rights outstanding at 1 January 2019
Rights granted during 2019
Rights forfeited during 2019
Rights converted to GPT stapled securities during 2019 1

Rights outstanding at 31 December 2019

Rights outstanding at 1 January 2020
Rights forfeited during 2020
Rights converted to GPT stapled securities during 2020 2

Rights outstanding at 31 December 2020

Number of rights

DSTI

LTI

Total

1,221,672
1,254,814
(466,861)
(774,921)

7,847,089
2,647,673
(887,611)
(2,146,497)

9,068,761
3,902,487
(1,354,472)
(2,921,418)

1,234,704

7,460,654

8,695,358

1,234,704
(365,633)
(869,071)

7,460,654
(1,231,237)
(1,540,959)

8,695,358
(1,596,870)
(2,410,030)

—

4,688,458

1. Rights under the 2018 DSTI plan were converted to GPT stapled securities on 19 March 2019 and rights under the 2016 LTI Plan were converted to GPT stapled securities on 14 February 2019.
2. Rights under the 2019 DSTI plan were converted to GPT stapled securities on 19 March 2020 and rights under the 2017 LTI Plan were converted to GPT stapled securities on 13 February 2020.

Securities outstanding at 1 January 2019
Securities granted during 2019
Securities vested during 2019

Securities outstanding at 31 December 2019

Securities outstanding at 1 January 2020
Securities granted during 2020
Securities vested during 2020

Number of stapled securities

GESOP

BBESOP

Total

62,609
48,472
(70,161)

40,920

40,920
53,226
(44,153)

1 1 4,764
30,429
(48,055)

177,373
78,901
(118,216)

97,138

138,058

97,138
46,330
(51,1 19 )

138,058
99,556
(95,272)

Securities outstanding at 31 December 2020

49,993

92,349

142,342

108

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 202021. Related Party Transactions
General Property Trust is the ultimate parent entity.

Equity interests in joint ventures and associates are set out in note 3. Receivables from joint ventures and associates are on commercial
terms and conditions with detail being set out in note 4.

Key management personnel
Key management personnel compensation was as follows:

Short term employee benefits
Post employment benefits
Long term incentive award accrual

Total key management personnel compensation

31 Dec 20
$’000

31 Dec 19
$’000

5,375.3
188.5
397. 1

5,960.9

7,174.0
181.4
1,863.3

9,218.7

Information regarding individual Directors’ and Senior Executives’ remuneration is provided in the Remuneration Report.

There have been no other transactions with key management personnel during the year.

Transactions with related parties

Transactions with related parties other than associates and joint ventures
Expenses
Contributions to superannuation funds on behalf of employees

Transactions with associates and joint ventures
Revenue and expenses
Responsible Entity fees from associates
Property management fees
Development management fees from associates
Rent expense
Management fees from associates

Distributions received/receivable from joint ventures
Distributions received/receivable from associates
Payroll costs recharged to associates

Other transactions
Increase in units in joint ventures
Decrease in units in joint ventures
Increase in units in associates

31 Dec 20
$’000

31 Dec 19
$’000

(6,643.7)

(6,521.0)

61, 101.8
12,958.7
7,221.0
4,496.2
6,753.9

51,988.5
91 ,183.9
8,390.5

61,869.6
1 6,643.5
6,831.5
4,275.8
6,240.5

56,531.6
112,817.4
9,765.8

2,977.2
(583,900.0)
6,212.2

4,924.7
—
535,322.8

109

Audit services
PricewaterhouseCoopers Australia
Statutory audit and review of financial reports

Total remuneration for audit services

Other assurance services
PricewaterhouseCoopers Australia
Regulatory and contractually required audits
Other assurance services

Total remuneration for other assurance services

Total remuneration for audit and assurance services

Non-audit related services
PricewaterhouseCoopers Australia
Other services

Total remuneration for non audit related services

Total auditor’s remuneration

23. Parent Entity Financial Information

Assets
Current assets
Non-current assets

Total assets

Liabilities
Current liabilities
Non-current liabilities

Total liabilities

Net assets

Equity
Equity attributable to secutityholders of the parent entity
Contributed equity
Reserves
Retained earnings

Total equity

(Loss)/profit attributable to members of the parent entity

Total comprehensive (loss)/income for the year, net of tax, attributable to members of the parent entity

Capital expenditure commitments
Retail
Office
Logistics
Properties under development

Total capital expenditure commitments

31 Dec 20
$’000

31 Dec 19
$’000

1,416.4

1,343.5

245.8
100.0

345.8

225.9
–

225.9

1,762.2

1,569.4

18.0

–

1,780.2

1,569.4

Parent entity

31 Dec 20
$’000

31 Dec 19
$’000

300.8
15,709.9

443.0
16,166.4

16,010.7

16,609.4

106.8
4,501.7

4,608.5

11,402.2

8,696.5
(18.3)
2,724.0

11,402.2

(140.2)

6.8
20.9
12.7
30.3

70.7

558.0
4,305.5

4,863.5

11,745.9

8,696.5
4.0
3,045.4

11,745.9

719.1

11.3
19.0
5.6
126.3

162.2

Intercompany loan receivables are considered to be low risk, and therefore the impairment provision is determined as 12 months expected
credit losses. Applying the expected credit risk model does not result in any significant loss allowance being recognised in 2020.

The parent entity had current net assets of $194.0 million (2019: current net asset deficiency $115.0 million). The parent has access to
cash and undrawn financing facilities of $1,790.1 million as set out in note 13.

110

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 202024. Accounting Policies

a) Basis of preparation
The financial statements are a general purpose financial report which has been prepared:

» in accordance with the requirements of the Trust’s Constitution, Corporations Act 2001, Australian Accounting Standards and other

authoritative pronouncements of the Australian Accounting Standards Board and International Financial Reporting Standards;

» on a going concern basis. GPT has prepared an assessment of its ability to continue as a going concern, taking into account all

available information for a period of 12 months from the date of these financial statements. As set out in note 13, GPT has access
to $1,790.1 million in cash and undrawn loan facilities and future cash flow assessments have been made, taking into consideration
appropriate probability-weighted factors. GPT is confident in the belief that that it will realise its assets and settle its liabilities and
commitments in the normal course of business and for at least the amounts stated in the financial statements. The net deficiency
of net assets over current liabilities of $42.8 million arises as a result of the inclusion of borrowings due with 12 months (refer to note
24(b) for further information on going concern);

» under the historical cost convention, as modified by the revaluation for financial assets and liabilities and investment properties at fair

value through the Consolidated Statement of Comprehensive Income;

» using consistent accounting policies with adjustments to bring into line any dissimilar accounting policies being adopted by the

controlled entities, associates or joint ventures; and

» in Australian dollars with all values rounded in the nearest hundred thousand dollars in accordance with ASIC Corporations (Rounding in

Financial/Directors’ Reports) Instrument 2016/191, unless otherwise stated.

In accordance with Australian Accounting Standards, the stapled entity reflects the consolidated entity. Equity attributable to other
stapled entities is a form of non-controlling interest and represents the contributed equity of the Company.

Comparatives in the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position and notes to the
financial statements have been restated to the current year presentation. There was no effect on the profit for the year.

As a result of the stapling, investors in GPT may receive payments from each component of the stapled security comprising distributions
from the Trust and dividends from the Company.

The financial report was approved by the Board of Directors on 15 February 2021.

b) Going Concern
Due to the uncertainty created by COVID-19, GPT has performed additional procedures in relation to assessing going concern. GPT is
of the opinion that it is able to meet its liabilities and commitments as and when they fall due for at least a period of 12 months from the
reporting date. In reaching this position, GPT has taken into account the following factors:

» Available liquidity, through cash and undrawn facilities of $1,790.1 million (after allowing for refinancing of $514.0 million of outstanding

commercial paper as at 31 December 2020);

» Weighted average debt expiry of 7.8 years, with $5.0 million of debt (excluding commercial papers outstanding) due between the date

of this report and 31 December 2021;

» Interest rate hedging level of 75 per cent over the next 12 months;

» Primary covenant gearing of 25.1 per cent, compared to a covenant level of 50.0 per cent;

» Interest cover ratio at 31 December 2020 of 6.4 times, compared to a covenant level of 2.0 times; and

» Sensitivity analysis has been conducted which indicate that GPT will continue to comply with its covenants, including adequate levels

of headroom for both the gearing and interest cover ratios, and that GPT will have adequate cash flows to remain solvent.

111

Controlled entities
The consolidated financial statements of GPT report the assets, liabilities and results of all controlled entities for the financial year.

Controlled entities are all entities over which GPT has control. GPT controls an entity when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity.

Controlled entities are consolidated from the date on which control is obtained to the date on which control is disposed. The acquisition
of controlled entities is accounted for using the acquisition method of accounting. All intercompany balances and transactions, income
and expenses and profits and losses resulting from intra-group transactions have been eliminated.

Associates
Associates are entities over which GPT has significant influence but not control, generally accompanying a shareholding of between
20 per cent and 50 per cent of the voting rights. Management considered if GPT controls its associates and concluded that it does not
based on the following considerations.

GPT has a 21.87 per cent equity interest in GPT Wholesale Office Fund (GWOF) and a 28.48 per cent equity interest in GPT Wholesale
Shopping Centre Fund (GWSCF) as at 31 December 2020. GPT Funds Management Limited (GPTFM), which is wholly owned by the GPT
Group is the Responsible Entity of the Funds. The Board of GPT FM comprises six Directors, of which GPT can only appoint two. As a
result, the Group has significant influence over GPT FM and accordingly accounts for it as an associate using the equity method. The
Group also has significant influence over the Funds’ and accounts for its interests in them using the equity method.

GPT RE Limited (GPTRE), which is wholly owned by the GPT Group owns 91.67 per cent of Darling Park Operator No.1 Pty Limited and
Darling Park Operator No.2 Pty Limited, the Trustees of Darling Park Trust and Darling Park Trust No.2. These entities are governed by a
Unitholder Committee. The Unitholder and Joint Venture Agreement stipulates that each unit holder has one member, with voting rights
in proportion to their unitholding and all resolutions must be passed unanimously. As a result, management has determined that the
Group has significant influence over these entities.

Investments in associates are accounted for using the equity method. Under this method, GPT’s investment in associates is carried
in the Consolidated Statement of Financial Position at cost plus post acquisition changes in GPT’s share of net assets. GPT’s share of
the associates’ result is reflected in the Consolidated Statement of Comprehensive Income. Where GPT’s share of losses in associates
equals or exceeds its interest in the associate, including any other unsecured long term receivables, GPT does not recognise any further
losses, unless it has incurred obligations or made payments on behalf of the associate.

Joint arrangements
Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights
and obligations each investor has, rather than the legal structure of the joint arrangement. GPT has assessed the nature of its joint
arrangements and determined it has both joint operations and joint ventures.

Joint operations
GPT has significant co-ownership interests in a number of properties through unincorporated joint ventures. These interests are held
directly and jointly as tenants in common. GPT recognises its direct share of jointly held assets, liabilities, revenues and expenses in the
consolidated financial statements under the appropriate headings. The investment properties that are directly owned as tenants in
common are disclosed in note 2.

Joint ventures
Investments in joint ventures are accounted for in the Consolidated Statement of Financial Position using the equity method which is the
same method adopted for associates.

112

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020d) Other accounting policies
Significant accounting policies that summarise the recognition and measurement basis used and are relevant to an understanding of the
financial statements are provided throughout the notes to the financial statements.

Foreign currency translation

Functional and presentation currency

Items included in the financial statements of each of the GPT entities are measured using the currency of the primary economic
environment in which they operate (‘the functional currency’).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end
exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Statement of
Comprehensive Income.

Foreign operations

Non-monetary items that are measured in terms of historical cost are converted using the exchange rate as at the date of the initial
transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when
the fair value was determined. Translation differences of non-monetary items, such as equities held at fair value through profit or loss, are
reported as part of the fair value gain or loss.

Exchange differences arising on monetary items that form part of the net investment in a foreign operation are taken against a foreign
currency translation reserve on consolidation.

Where forward foreign exchange contracts are entered into to cover any anticipated excesses of revenue less expenses within foreign
joint ventures, they are converted at the ruling rates of exchange at the reporting period. The resulting foreign exchange gains and losses
are taken to the Consolidated Statement of Comprehensive Income.

ii) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST (or equivalent tax in overseas locations) except where the GST
incurred on purchase of goods and services is not recoverable from the tax authority, in which case the GST is recognised as part of the
cost of acquisition of the asset or as part of the expense item as applicable. Receivables and payables are stated inclusive of the amount
of GST. The net amount of GST receivable from, or payable to, the taxation authority is included with other receivables or payables in the
Consolidated Statement of Financial Position.

Cash flows are presented on a gross basis in the Consolidated Statement of Cash Flows. The GST components of cash flows arising from
investing or financing activities which are recoverable from, or payable to, the taxation authority are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

iii) Revenue

Revenue from contracts with customers

Revenue is recognised over time if:

» the customer simultaneously receives and consumes the benefits as the entity performs;

» the customer controls the asset as the entity creates or enhances it; or

» the seller’s performance does not create an asset for which the seller has an alternative use and there is a right to payment for

performance to date.

Where the above criteria is not met, revenue is recognised at a point in time. Management has assessed that there have been no
significant changes to the recognition of revenue as a result of the COVID-19 pandemic.

Other revenue

Rental revenue from investment properties is recognised on a straight line basis for the minimum contracted rent over the lease term
with an asset recognised as a component of investment properties relating to the fixed increases in operating lease rentals in future
periods. When GPT provides lease incentives to tenants, these costs are amortised against lease income on a straight line basis.
Contingent rental income is recognised as revenue in the period in which it is earned.

Revenue from dividends and distributions is recognised when they are declared.

Interest income is recognised on an accrual basis using the effective interest method.

Management has assessed that there have been no significant changes to the recognition of other revenue as a result of the
COVID-19 pandemic.

113

Type of revenue

Description

Recoveries revenue

Recharge revenue

Fund management fees

Fee income – property
management fees

The Group recovers the costs associated with general building and tenancy operation
from lessees in accordance with specific clauses within lease agreements. These are
invoiced monthly based on an annual estimate. The consideration for the current month
is due on the first day of the month. Revenue is recognised as the estimated costs are
consumed by the tenant. Should any adjustment be required based on actual costs
incurred, this is recognised in the Consolidated Statement of Financial Performance within
the same reporting period and billed annually.

The Group recovers costs for any additional specific services requested by the lessee
under the lease agreement. These costs are recovered in accordance with specific
clauses within the lease agreements. Revenue from recharges is recognised as the
services are provided. The lessee is invoiced on a monthly basis, where applicable. The
consideration for the current month is due on the first day of the month.

The Company provides fund management services to GPT Wholesale Office Fund (GWOF)
and GPT Wholesale Shopping Centre Fund (GWSCF) (the Funds) in accordance with the
Funds constitutions. The services are utilised on an ongoing basis and revenue is calculated
and recognised in accordance with the relevant constitution. The fees are invoiced on a
quarterly basis and consideration is payable within 21 days of the quarter end.

The Company provides property management services to the owners of property
assets in accordance with property services agreements. The services are utilised
on an ongoing basis and revenue is calculated and recognised in accordance with
the specific agreement. The fees are invoiced monthly with variable payment terms
depending on the individual agreements. Should an adjustment, as calculated in
accordance with the property services agreement be required, this is recognised in the
Consolidated Statement of Financial Performance within the same reporting period.

Fee income – property
management leasing fees
– over time

Under some property management agreements, the Company provides a lease
management service to the owners. These services are delivered on an ongoing basis and
revenue is recognised monthly, calculated in accordance with the property management
agreement. The fees are invoiced monthly with variable payment terms depending on the
individual agreements.

Fee income – property
management leasing fees
– point in time

Under some property management agreements, the Company provides a lease
management service to the owners. The revenue is recognised when the specific service
is delivered (e.g. on lease execution) and consideration is due 30 days from invoice date.

Development
management fees

Development revenue

The Company provides development management services to the owners of property
assets in accordance with development management agreements. Revenue is calculated
and recognised in accordance with the specific agreement. The fees are invoiced on a
monthly basis, in arrears, and consideration is due 30 days from invoice date.

The Company provides development management services to the owners of property
assets in accordance with development management agreements. Revenue is calculated
in accordance with the specific agreement and invoiced in accordance with the contract
terms. Consideration is due from the customer based on the specific terms agreed in the
contract and is recognised when the Company has control of the benefit.

Recognised

Over time

Point in time

Over time /
point in time

Point in time

Sale of inventory

Proceeds from the sale of inventory are recognised by the Company in accordance with a
specific contract entered into with another party for the delivery of inventory. Revenue is
calculated in accordance with the contract. Consideration is payable in accordance with
the contract. Revenue is recognised when control has been transferred to the buyer.

Point in time

iv) Government grants
The Group has received $8.8 million under the Federal Government’s JobKeeper program. The Group has also received $0.7 million in land
tax relief. These have been accounted for as government grants under AASB 120 Accounting for Government Grants and Disclosure of
Government Assistance. The standard provides the option to present these amounts as income or as a reduction in expenses. GPT has
elected to present these amounts as a reduction in expenses as this best reflects the underlying substance of the transaction for GPT.

114

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020v) Expenses
Property expenses and outgoings which include rates, taxes and other property outgoings, are recognised on an accruals basis.

vi) Finance costs
Finance costs include interest on borrowings and regular coupons paid or received under derivative instruments hedging GPT’s interest
rate risk on a portfolio basis, amortisation of discounts or premiums relating to borrowings and amortisation of ancillary costs incurred in
connection with the arrangement of borrowings. Finance costs are expensed as incurred unless they relate to a qualifying asset.

A qualifying asset is an asset under development which generally takes a substantial period of time to bring to its intended use or sale.
Finance costs incurred for the acquisition and construction of a qualifying asset are capitalised to the cost of the asset for the period of
time that is required to complete the asset. Where funds are borrowed specifically for a development project, finance costs associated
with the development facility are capitalised. Where funds are used from group borrowings, finance costs are capitalised using the
relevant capitalisation rate taking into account the Group’s weighted average cost of debt.

vii) Leases
Payments associated with short term leases and leases of low value assets are recognised on a straight-line basis as an expense in the
Consolidated Statement of Comprehensive Income. Short-term leases are leases with a lease term of 12 months or less. Low-value
assets comprise IT equipment and small items of office furniture.

Lease liabilities are initially measured at the present value of the lease payments discounted using the interest rate implicit in the lease. If
that rate cannot be determined, GPT’s incremental borrowing rate is used. The incremental borrowing rate is calculated by interpolating
or extrapolating secondary market yields on the Group’s domestic medium term notes (MTNs) for a term equivalent to the lease. If there
are no MTNs that mature within a reasonable proximity of the lease term, indicative pricing of where the Group can price a new debt
capital market issue for a comparative term will be used in the calculation.

Lease liabilities are subsequently measured by:

» increasing the carrying amount to reflect interest on the lease liability;

» reducing the carrying amount to reflect the lease payments made; and

» remeasuring the carrying amount to reflect any reassessment or lease modifications.

Interest on the lease liability and any variable lease payments not included in the measurement of the lease liability are recognised in
the Consolidated Statement of Comprehensive Income in the period in which they relate. Interest on lease liabilities included in Finance
costs in the Consolidated Statement of Comprehensive Income totalled $1.9 million for the year.

There have been no changes to the lease term or incremental borrowing rate used for the measurement of lease liabilities as a result of
the COVID-19 pandemic.

Right-of-use assets are measured at cost less depreciation and impairment and adjusted for any remeasurement of the lease liability.
The cost of the asset include:

» the amount of the initial measurement of lease liability;

» any lease payments made at or before the commencement date less any lease incentives received;

» any initial direct costs; and

» restoration cost.

Right-of-use assets are depreciated on a straight-line basis from the commencement date of the lease to the earlier of the end of the
useful life of the right-of-use asset or the end of the lease term, unless they meet the definition of an investment property. Right-of-use
assets which meet the definition of an investment property form part of the investment property balance and are measured at fair value
in accordance with AASB 140 Investment Property (refer note 2 and following section on ground leases).

GPT determines the lease term as the non-cancellable period of a lease together with both:

» the periods covered by an option to extend the lease if it is reasonably certain to exercise that option; and

» periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option.

Management considers all the facts and circumstances that create an economic incentive to exercise an extension option or not
exercise a termination option. This assessment is reviewed if a significant event or a significant change in circumstances occurs which
affects this assessment and that is within the control of the lessee.

GPT tests right-of-use assets for impairment where there is an indicator that the asset may be impaired. An asset’s carrying amount is
written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

GPT has assessed the right-of-use assets for impairment indicators in light of the COVID-19 pandemic and has calculated the recoverable
amount where indicators exist. This has resulted in impairment expense of $2.9 million for the year.

GPT’s right-of-use assets are all property leases.

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BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSSECURITYHOLDER INFORMATIONThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTSGround Leases

A lease liability reflecting the leasehold arrangements of investment properties needs to be separately disclosed in the Consolidated
Statement of Financial Position and the carrying value of the investment properties will be adjusted (i.e. grossed up) so that the net of
these two amounts equals the fair value of the investment properties. The lease liabilities are calculated as the net present value of the
future lease payments discounted at the incremental borrowing rate.

e) Changes in accounting estimates
During the year there was a change in the estimated useful life of the property, plant and equipment assets related to the MLC Head
Office fitout. As the MLC asset related to this fitout is no longer owned by the Group, management has determined that the end of
the lease period, being 31 August 2025, is a more appropriate guide to determining the useful life for these assets. An adjustment has
therefore been performed for all relevant assets with a useful life beyond 31 August 2025. This has resulted in an increase to depreciation
of $1.8 million in the year ended 31 December 2020. The effect on depreciation in the following years is not expected to have a material
impact on future results.

f) New and amended accounting standards and interpretations adopted from 1 January 2020
There are no significant changes to GPT’s financial performance and position as a result of the adoption of the new and amended
accounting standards and interpretations effective for annual reporting periods beginning on or after 1 January 2020.

g) New accounting standards and interpretations issued but not yet adopted
There are no new standards or amendments to standards relevant to GPT.

25. Events subsequent to reporting date
The COVID-19 pandemic has created unprecedented economic and societal impacts and there remains significant uncertainty. In the
event the COVID-19 impacts are more severe or prolonged than anticipated, this may have further adverse impacts to the fair value
of the Group’s investment properties and its operating result. At the reporting date a definitive assessment of the future effects of
COVID-19 on the Group cannot be made, as the impact will depend on the magnitude and duration of the economic downturn, with the
full range of possible effects unknown.

On 15 February 2021, the Directors declared a distribution for the half year ended 31 December 2020 of 13.20 cents, being $257.1 million
which is expected to be paid on 26 February 2021.

On 15 February 2021, the Group announced an on-market buy-back of up to 5 per cent of GPT’s ordinary securities on issue.

Other than the above, the Directors are not aware of any matter or circumstances occurring since 31 December 2020 that has
significantly or may significantly affect the operations of GPT, the results of those operations or the state of affairs of GPT in the
subsequent financial years.

116

Notes to the Financial StatementsYear ended 31 December 2020Financial StatementsThe GPT Group | Annual Report 2020Directors’ Declaration

Year ended 31 December 2020

In the Directors of the Responsible Entity’s opinion:

a) The consolidated financial statements and notes set out on pages 68 to 116 are in accordance with the Corporations Act 2001, including:

» complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting

requirements; and

» giving a true and fair view of GPT’s financial position as at 31 December 2020 and of its performance for the financial year ended

on that date; and

b) the consolidated financial statements and notes comply with International Financial Reporting Standards as disclosed in note 24

to the financial statements.

c) There are reasonable grounds to believe that GPT will be able to pay its debts as and when they become due and payable. The
net deficiency of current assets over current liabilities at 31 December 2020 of $42.8 million arises as a result of the inclusion of
borrowings due within 12 months. GPT has access to cash and undrawn financing facilities of $1,790.1 million as set out in note 13 to
the financial statements.

The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer as required by Section 295A
of the Corporations Act 2001.

This declaration is made in accordance with a resolution of the Directors.

Vickki McFadden
Chairman

GPT RE Limited

Sydney
15 February 2021

Bob Johnston
Chief Executive Officer and Managing Director

117

Independent auditor’s report

To the stapled security holders of the GPT Group

Report on the audit of the financial report

Our opinion

In our opinion:

The accompanying financial report of General Property Trust (the Trust) and its controlled entities and GPT Management
Holdings Limited (the Company) and its controlled entities (together, GPT, the GPT Group or the Group) is in accordance with
the Corporations Act 2001, including:

(a) giving a true and fair view of the GPT Group's financial position as at 31 December 2020 and of its financial performance

for the year then ended

(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.

What we have audited
The Group financial report comprises:

●

the Consolidated Statement of Financial Position as at 31 December 2020

the Consolidated Statement of Comprehensive Income for the year then ended

the Consolidated Statement of Changes in Equity for the year then ended

the Consolidated Statement of Cash Flows for the year then ended

the Notes to the Financial Statements, which include significant accounting policies and other explanatory information

the Directors’ Declaration.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the financial report section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia.
We have also fulfilled our other ethical responsibilities in accordance with the Code.

Our audit approach

An audit is designed to provide reasonable assurance about whether the financial report is free from material misstatement.
Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

Liability limited by a scheme approved under Professional Standards Legislation.

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Financial StatementsThe GPT Group | Annual Report 2020

We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial report
as a whole, taking into account the geographic and management structure of the Group, its accounting processes and controls
and the industry in which it operates.

Materiality

Audit scope

Key audit matters

●

For the purpose of our audit we
used overall Group materiality of
$27.7 million, which represents
approximately 5% of the Group’s
Funds from Operations (FFO).

●

● We applied this threshold,

together with qualitative
considerations, to determine the
scope of our audit and the nature,
timing and extent of our audit
procedures and to evaluate the
effect of misstatements on the
financial report as a whole.

● We chose FFO because, in our
view, it is the key performance
indicator used by security holders
to measure the performance of the
Group. An explanation of what is
included in FFO is located in Note
1, Segment Information.

● We selected 5% based on our

professional judgement noting it is
also within the range of commonly
accepted profit related thresholds.

●

The structure of the Group is
commonly referred to as a stapled
group. In a stapled group, the
securities of two or more entities
are 'stapled' together and cannot
be traded separately. In the case of
the Group, the units in the Trust
have been stapled to the shares in
the Company. For the purposes of
consolidation accounting, the
Trust is the 'deemed' parent and
the financial report reflects the
consolidation of the Trust and its
controlled entities and the
Company and its controlled
entities.

●

Amongst other relevant topics, we
communicated the following key
audit matters to the Audit
Committee:

Valuation of investment
properties
Recoverability of trade
receivables
Carrying value of inventories

●

These are further described in the
Key audit matters section of our
report.

● Our audit focused on where the

Group made subjective
judgements; for example,
significant accounting estimates
involving assumptions and
inherently uncertain future events.

The Group holds equity accounted
investments in two wholesale real
estate investment funds. The
auditor of these funds (the
component auditor) assisted in
performing procedures on behalf
of the Group engagement team.

● We determined the level of

involvement we needed to have in
the audit work performed by the
component auditor to be able to
conclude whether sufficient
appropriate audit evidence had
been obtained. This included
written instructions and active
dialogue throughout the year.

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Independent Auditor’s Report

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report for the current period. The key audit matters were addressed in the context of our audit of the financial report as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Further, any commentary on
the outcomes of a particular audit procedure is made in that context.

Key audit matter

How our audit addressed the key audit matter

Valuation of investment properties
$10,323.6 million
Refer to note 2

We tested key controls related to the data inputs provided by
the Group to external valuers, as well as key controls over
review and approval of the valuations by appropriate
management.

The Group’s investment property portfolio is comprised of
office, retail and logistics properties including properties
under development in those categories.
Investment properties are valued at fair value at reporting
date using the Group’s policy as described in Note 2. The value
of investment properties is dependent on the valuation
methodology adopted and the inputs and assumptions in the
valuation models. The following assumptions are key in
establishing fair value:

● Capitalisation rate

● Discount rate

In accordance with the Group’s valuation policy, all
investment properties (with the exception of unimproved
land) must be externally valued by an independent valuation
expert at least once every 12 months. All investment
properties have been independently valued as at 31 December
2020 (excluding assets held for sale and those acquired during
the second half of the year).
We considered this a key audit matter because of:

•

the relative size of the investment property balance
in the consolidated statement of financial position;
the inherently subjective nature of the key
assumptions that underpin the valuations, including
capitalisation and discount rates; and
the extent of judgement involved in considering the
impact of the COVID-19 pandemic on investment
property valuations.

We obtained a selection of independent property market
reports and also worked together with PwC Real Estate
experts to develop an understanding of the prevailing market
conditions and their expected impact on GPT investment
properties.

We agreed the fair value in external investment property
valuation reports to the Group’s accounting records and
assessed the competency, capability and objectivity of the
external valuers.

We met with management to discuss the specifics of the
property portfolio including significant leasing activity, capital
expenditure and vacancies impacting the portfolio.

For a sample of key data inputs to the valuations, we agreed
details to supporting documentation. For example, we agreed
a sample of rental income in valuations to lease agreements.

For a sample of properties which were assessed as being at
greater risk of material misstatement, we performed the
following procedures, amongst others, to assess the
appropriateness of key assumptions used in the Group’s
assessment of fair value. We:

•

obtained the valuation and held discussions with
management to develop an understanding of the
basis for assumptions used.
assessed the appropriateness of the methodology
adopted and the mathematical accuracy of
valuations.
assessed the appropriateness of the capitalisation
rate and discount rate used in the valuations by
comparing them against market data for
comparable properties.
assessed the reasonableness of other key
assumptions in the valuation by considering
observable external market data such as comparable
sales.

• met with a selection of external valuation firms to
develop an understanding of their processes,
judgement and observations including how they

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Financial StatementsThe GPT Group | Annual Report 2020

dealt with uncertainties arising from COVID-19 in
the valuations.

In addition to the above, for selected properties under
development:
•

•

we compared key data inputs in the ‘as if complete’
valuation to underlying support; and
we compared a sample of key assumptions used
within the development’s ‘cost to complete’
schedule to appropriate evidence, for example,
expected future costs were agreed to contractor
forecast advice.

We assessed the reasonableness of the Group’s disclosures
against the requirements of Australian Accounting Standards.
In particular, we considered the adequacy of the disclosures
made in Note 2 which explains the basis of valuations, as well
as the inclusion of material valuation uncertainty clauses by
the independent valuers.

We developed an understanding and evaluated the impact of
COVID-19 and the Code of Conduct on tenant rental
receivables, and the processes and controls established by the
Group to calculate actual and expected rental waivers and the
ECL model.

For a sample of executed rent abatement deeds, we agreed
relevant terms to the general ledger and the model used to
calculate actual and expected rent waivers.

For the population of tenants for which rent waivers are
expected:
•

we assessed whether the Group’s significant
assumptions to calculate the expected abatement
were appropriate, for example by comparing the
expected rebate percentage to the rebate in similar
executed deals; and
we recalculated the rent abatement for a sample of
tenants.

Recoverability of trade receivables

$50.2m

Refer to note 4
As a result of COVID-19 and the commercial tenancies Code of
Conduct legislated in each state and territory, the GPT Group
has provided a significant volume of rental waivers to tenants
during the year. Tenant debtors which have been waived, or
are expected to be waived, have been written off as
uncollectible.

For remaining trade receivables balances which have not been
written off, the Group has assessed recoverability using an
Expected Credit Loss (ECL) model.

The Group has applied judgement in establishing the
assumptions used to assess expected rental waivers as well as
in the ECL model.

•

Given the higher receivables balance and the uncertainty
arising from COVID 19, as well as the extent of judgement
involved in determining expected rental waivers and future
expected credit losses, we consider this to be a key audit
matter.

For the Group’s ECL model:

•

we developed an understanding of the methodology
applied by portfolio and the basis for significant
assumptions.

• we tested, on a sample basis, the accuracy of the

data in the model to relevant supporting
information. We also tested the model for
mathematical accuracy.

• we considered the appropriateness of the

methodology and significant assumptions. For
example we considered the impact of COVID-19 on
the risk profile of specific tenants, and on groups of
tenants across the portfolios.
for a sample of lease tenant receivables, we tested
the data that informed the Group’s significant
assumptions such as tenant cash payment trends.

•

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Independent Auditor’s Report

Carrying value of inventories
$95.5 million
Refer to note 6

The Group develops a portfolio of sites for future sale which
are classified as inventory. The Group’s inventories are held at
the lower of the cost and net realisable value for each
inventory project.

The cost of the inventory includes the cost of acquisition,
development, capitalised finance costs and all other costs
directly related to specific projects including an allocation of
direct overhead expenses.

We considered the carrying value of inventories a key audit
matter given the significant judgement required by the Group
in estimating future selling prices and the costs to complete.
These judgements may have a material impact on the
calculation of net realisable value and therefore in
determining whether the value of a project should be written
down or have a previous impairment reversed.

We also assessed the reasonableness of the Group’s
disclosures against the requirements of Australian Accounting
Standards, including the impact of COVID-19.

For each project we obtained the Group’s latest Net Realisable
Value (NRV) models. We developed an understanding of how
the Group identified the relevant assumptions and sources of
data that are appropriate for calculating the NRV. We
performed the following procedures, amongst others:

●

discussed project specifics with management, for
example the life cycle of the project, key project risks
and the impact of COVID-19 and how it has been
reflected in the NRV models.

compared the estimated selling prices to market sales
data in similar locations or to recent sales in the project.

compared the forecasted costs to complete for the
project to the relevant construction advice (if
applicable).

compared the carrying value to the NRV to identify
projects with potential impairments.

traced each inventory acquisition and disposal to the
supporting settlement statement, contract and cash
support.

traced a sample of capital expenditure additions to
supporting documentation and tested whether they
were valid costs that could be capitalised in accordance
with the requirements of Australian Accounting
Standards.

tested the operating effectiveness of the control
surrounding the Valuation Committee’s review of
inventory valuations.

assessed the reasonableness of the disclosures relating
to inventories in the Group’s financial report against the
requirements of Australian Accounting Standards.

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Financial StatementsThe GPT Group | Annual Report 2020

Other information

The directors of GPT RE Limited, the Responsible Entity of General Property Trust, (the directors) are responsible for the other
information. The other information comprises the information included in the annual report for the year ended 31 December
2020, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of
assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard.

Responsibilities of the directors for the financial report

The directors are responsible for the preparation of the financial report that gives a true and fair view in accordance with
Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is
necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of the financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of
our auditor's report.

Report on the remuneration report

Our opinion on the remuneration report

We have audited the remuneration report included in pages 52 to 64 of the directors report for the year ended 31 December
2020.

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Independent Auditor’s Report

In our opinion, the remuneration report of the GPT Group for the year ended 31 December 2020 complies with section 300A of
the Corporations Act 2001.

Responsibilities

The directors are responsible for the preparation and presentation of the remuneration report in accordance with section 300A
of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit
conducted in accordance with Australian Auditing Standards.

PricewaterhouseCoopers

Susan Horlin
Partner

Sydney
15 February 2021

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Financial StatementsThe GPT Group | Annual Report 2020

Securityholder Information

GPT is listed on the Australian Securities Exchange (ASX) under the ASX Listing Code: GPT.

VOTING RIGHTS
Securityholders in the GPT Group are entitled to one vote for each dollar of the value of the total securities they hold in the Group.

SECURITYHOLDERS
Substantial Securityholders

Unisuper Limited
Vanguard Group
Blackrock
State Street Corporation

Distribution of Securities

1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over

Total Number of Securityholders

Number of Securities

297,332,491
183,628,450
163,118,343
125,992,619

Number of
Securityholders

Percentage of total
issued Securities

14,277
12,280
3,589
2,555
102

32,803

0.33
1.56
1.32
2.71
94.08

100.00%

There were 1,274 securityholders holding less than a marketable parcel of 112 securities, based on a close price of $4.50 as at
31 December 2020, and they hold 47,190 securities.

Twenty Largest Securityholders

HSBC Custody Nominees (Australia) Limited
J P Morgan Nominees Australia
BNP Paribas Nominees Pty Ltd
Citicorp Nominees Pty Limited
National Nominees Limited
Citicorp Nominees Pty Limited
BNP Paribas Noms Pty Ltd
HSBC Custody Nominees (Australia) Limited
Pacific Custodians Pty Limited
HSBC Custody Nominees (Australia) Limited
Charter Hall Wholesale Management Limited
Navigator Australia Ltd
Argo Investments Limited
AMP Life Limited
HSBC Custody Nominees (Australia) Limited-GSCO ECA
One Managed Investment Funds Limited
BNP Paribas Nominees Pty Ltd Hub24 Custodial Serv Ltd
Netwealth Investments Limited
BNP Paribas Noms (NZ) Ltd
The Trust Company (Australia) Limited

Total

Total Securities on Issue

Number of Securities

Percentage of
total issued Securities

649,705,381
419,347,992
337,314,702
217,177,778
84,745,692
20,763,844
19,839,853
18,866,464
6,077,382
4,861,923
4,158,011
4,106,457
3,480,667
3,426,358
2,620,806
2,550,000
2,515,343
2,306,340
1,962,019
1,917,228

1,807,744,240

1,947,929,316

33.35
21.53
17.32
11.15
4.35
1.07
1.02
0.97
0.31
0.25
0.21
0.21
0.18
0.18
0.13
0.13
0.13
0.12
0.10
0.10

92.81

125

Securityholder Information

ISSUE OF SECURITIES
No GPT securities were issued during the period 1 January 2020 to 31 December 2020.

A complete list of all securities issued since GPT’s inception in 1971 can be obtained from our website (www.gpt.com.au) or by calling the
GPT Securityholder Service Centre on 1800 025 095 (freecall within Australia).

INVESTOR INFORMATION

Securityholder Services – Link Market Services
You can access your investment online at www.linkmarketservices.com.au, signing in using your SRN/HIN, Surname and Postcode.
Functions available include updating your address details, downloading a PDF of your Annual Tax Statement and collecting FATCA/CRS
self certification.

Also online at www.linkmarketservices.com.au are regularly requested forms relating to payment instructions, name corrections and
changes and deceased estate packs.

For assistance with altering any of your investment details, please phone the GPT Registry on 1800 025 095 (free call within Australia)
or +61 1800 025 095 (outside Australia).

Electronic communications
GPT encourages our securityholders to receive investor communications electronically, including the Group Annual Report, as part of our
commitment to sustainability. These reports are available on our website at www.gpt.com.au.

To register for electronic investor communications, please go to www.linkmarketservices.com.au and register for online services.

Annual General Meeting 2021
GPT’s Annual General Meeting (AGM) will be held on 13 May 2021. Details will be provided in the Notice of Meeting. The Chairman's and
CEO's addresses will be announced to the ASX on the day.

Investor Calendar

13 May 2021
16 August 2021
16 August 2021
August 2021

Annual General Meeting
2021 Interim Result Announcement
June 2021 Half Year Distribution Announcement
June 2021 Half Year Distribution Payment

An investor calendar is also available on GPT’s website at www.gpt.com.au/investor-centre

Distribution Policy and Payments
GPT has a distribution policy that effectively aligns the Group’s capital management framework with our business strategy, which reflects
a sustainable distribution level to ensure a prudent approach to managing the Group’s gearing through market and economic cycles.

GPT makes distribution payments in Australian dollars to securityholders two times a year, for the six months ended 30 June and the
six months ended 31 December.

126

Securityholder InformationThe GPT Group | Annual Report 2020Registered Office
Level 51 MLC Centre
19 Martin Place
Sydney NSW 2000

Telephone: +61 2 8239 3555
Facsimile: +61 2 9225 9318

AUDITORS
PricewaterhouseCoopers
One International Towers Sydney,
Watermans Quay, Barangaroo
Sydney NSW 2000

PRINCIPAL REGISTRY
Link Market Services
GPT Security Registrar
Locked Bag A14
Sydney South NSW 1235

Within Australia: 1800 025 095 (free call)
Outside Australia: +61 1800 025 095

Fax: +61 2 9287 0303
Email: registrars@linkmarketservices.com.au
Website: www.linkmarketservices.com.au

Corporate Directory

THE GPT GROUP
Comprising:

GPT Management Holdings Limited
ACN 113 510 188 and

GPT RE Limited
ACN 107 426 504
AFSL 286511

As Responsible Entity for
General Property Trust ARSN 090 110 357

BOARD OF DIRECTORS
Vickki McFadden (Chairman)
Bob Johnston
Tracey Horton AO
Angus McNaughton
Mark Menhinnitt
Michelle Somerville
Gene Tilbrook 1
Robert Whitfield AM

Company Secretaries
James Coyne
Lisa Bau

Telephone: +61 2 8239 3555
Facsimile: +61 2 9225 9318

Audit Committee
Michelle Somerville (Chairman)
Angus McNaughton
Gene Tilbrook 1
Robert Whitfield AM

Human Resources and Remuneration Committee
Tracey Horton AO (Chairman)
Vickki McFadden
Angus McNaughton
Mark Menhinnitt

Nomination Committee
Vickki McFadden (Chairman)
Bob Johnston
Tracey Horton AO
Angus McNaughton
Mark Menhinnitt
Michelle Somerville
Gene Tilbrook 1
Robert Whitfield AM

Sustainability and Risk Committee
Gene Tilbrook (Chairman) 1
Tracey Horton AO
Mark Menhinnitt
Michelle Somerville
Robert Whitfield AM 2

1. Gene Tilbrook retired from the GPT Board on 31 December 2020.
2. Robert Whitfield AM assumed the role of Chairman of the Sustainability and Risk Committee from 1 January 2021.

127

128

The GPT Group | Annual Report 2020SECURITYHOLDER
INFORMATION

129

BUSINESS OVERVIEWHOW WE CREATE VALUERISK MANAGEMENTDIRECTORS' REPORTGOVERNANCEFINANCIAL STATEMENTSThe GPT Group | Annual Report 2020PERFORMANCE AND PROSPECTSLevel 51 MLC Centre
19 Martin Place
Sydney NSW 2000

www.gpt.com.au

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