I NG OFFI CE FUND ANNUAL UNI THOLDER MEETI NG 16 November 2007 2 0 - - PowerPoint PPT Presentation

I NG OFFI CE FUND ANNUAL UNI THOLDER MEETI NG

16 November 2007

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2 0 0 7 RESULTS SUMMARY

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KEY STATI STI CS

(1) I ncludes one-off special distribution of 1¢

14% 19.0% 3 2 .8 % Twelve month total return 22% $1.42 $ 1 .7 3 Net asset value (per unit) 2% 39.4% 3 7 .6 % Gearing 12% 10.35 cents 1 1 .5 5 cents(1) Total distributions (per unit) 11% $111.7m $ 1 2 4 .3 m Distributable income 35% $2.6b $ 3 .5 b Total assets June 2006 June 2 0 0 7

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► Leased over 46,000 sqm during the year or 7% of portfolio ► Secured $19.4m annual rental income ► Maintained high portfolio occupancy at 96% ► Sustained long average lease term of 5.5 years ► Established new $1.4b unsecured debt facility

PORTFOLI O & FUND ACHI EVEMENTS

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A$60.2m 40 Cameron Ave Belconnen ACT Price Disposals A$446.0m ING Dutch Office Fund (20% ) THE NETHERLANDS A$129.5m Neuilly Victor Hugo Building (50% ) Paris FRANCE A$87.0m 1 Adelaide Tce Perth WA Price Acquisitions

ACQUI SI TI ONS & DI SPOSALS

NVH Building, Paris WTC Building, Netherlands

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POST 3 0 JUNE 2 0 0 7 ACTI VI TY

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► I OF has consistently outperform ed its office trust peer group

PERFORMANCE TO SEPTEMBER 2 0 0 7

22.6% 21.9% 20.4% 17.6% 15.3% 21.1% 19.8% 16.5% 0% 5% 10% 15% 20% 25% YTD 1yr 3yrs 5yrs IOF UBS Comm 200

Source: UBS

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Bastion Tower, Brussels Verizon Tower, Virginia

POST 3 0 JUNE 2 0 0 7 - ACQUI SI TI ONS

Wellington Central, Perth

Negotiated off market A$111.2m Bastion Tower (50% ) Brussels, BELGIUM Negotiated off market A$59.0m Verizon Tower (50% ) Virginia, USA Negotiated off market A$81.5m Wellington Central Perth, WA Price Acquisitions

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W ELLI NGTON CENTRAL, PERTH

► Acquired for A$ 8 1 .5 m Sept 2 0 0 7 ► New generation A grade building ► 8 levels office space, 3 levels parking ► Fully leased to Fed. Gov. for 1 0 years from com pletion ( est. March 2 0 0 9 ) ► Yield of 6 .2 5 % after costs w ith fixed annual increases

Artist’s impression Artist’s impression

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VERI ZON TOW ER, VI RGI NI A

► Acquired 5 0 % for US$ 5 2 .5 m Sept 2 0 0 7 ► Located in prem ier business park ► 1 4 levels office accom m odation, 5 ½ levels parking ► Value add and repositioning opportunity ► Stabilised yield of 7 .6 % after costs

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BASTI ON TOW ER , BRUSSELS

► Acquired 5 0 % for € 7 1 .2 m Oct 2 0 0 7 ► Rare, landm ark, high-rise office building ► Located in prestigious ‘European Quarter’ ► Stable office m arket – ‘W ashington DC of Europe’ ► Yield of 5 .4 % after costs

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AUSTRALI A 5 3 % Sydney 26% Melbourne 10% Brisbane 14% Perth 2% Canberra 1% EUROPE 2 3 % Amsterdam 6% Paris 4% Utrecht 4% Brussels 3% The Hague 2% Prague 2% Rotterdam 2%

GEOGRAPHI C DI VERSI TY

USA 2 4 % Washington DC 12% New York 8% Boston 2% Dallas 2%

► W ell diversified across core global office m arkets

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RI SK MANAGEMENT – I NTEREST RATES

€ Debt US$ Debt

% of debt hedged (fixed) % of debt hedged (fixed)

► W ell protected from interest rate m ovem ents

Note: Excl. current 900 Third Ave refinance which will increase % of debt hedged

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2009 2010 2011 2012

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2009 2010 2011 2012

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RI SK MANAGEMENT - CURRENCI ES

€ I ncom e US$ I ncom e

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2009 2010 2011 2012 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2009 2010 2011 2012

% of income hedged (fixed) % of income hedged (fixed)

► W ell protected from currency m ovem ents

OFFI CE MARKET VACANCY RATES

9.4% 7.5% 2.3% 2.1% 3.5% 1.3% 0.7% 5.6% 5.9% 1.2%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Sydney Melbourne Brisbane Canberra Perth Jun-06 Jun-07

Source: PCA

Vacancy rates - overseas office m arkets Vacancy rates - Australian office m arkets

7.6% 9.2% 18.2% 5.9% 10.0% 4.8% 8.9% 6.1% 9.5% 16.5%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

New York Washington D.C. Amsterdam Paris Brussels Jun-06 Jun-07

Source: JLL, PMA, ING Real Estate

► I m proving vacancy rates globally

PORTFOLI O LEASE EXPI RY PROFI LE

4% 8% 8% 13% 67% 0% 10% 20% 30% 40% 50% 60% 70% 80% Vacant FY08 FY09 FY10 FY11+

► Long average lease term to expiry of 5 .5 years

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I NGRE GLOBAL PLATFORM: A COMPETI TI VE ADVANTAGE

Globally… ► Corporate strength & support for transactions ► Ability to invest as locals ► Strong research capability ► Efficient cross border communication I n Australia… ► Highly experienced, stable management team ► Disciplined investment approach ► Personal approach to tenant relationships ► Strong performance culture

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Strategies to increase total returns include: ► Active asset m anagem ent to capture rental grow th opportunities ► Repositioning and value add strategies for new and existing assets ► Further expansion into strong office m arkets ► Continue recycling of capital through the sale of non core assets

GROW TH STRATEGI ES

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► Portfolio is in great shape w ith m inim al expiry risk ► W ell positioned to benefit from im proving office m arkets ► Strong balance sheet to capitalise on global investm ent opportunities ► Com petitive advantage via extensive I NG Real Estate global platform ► Com m itted to delivering sustainable and grow ing distributions w ithout com prom ising security of incom e

“Delivering on strategy”

OUTLOOK

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► Can distributions be paid earlier? ► Can the year end tax statem ents be provided any earlier? ► W hat sustainability initiatives is I OF undertaking? ► W here w ill I OF be looking for future investm ent opportunities?

FREQUENTLY ASKED QUESTI ONS

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THANK YOU

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