Macquarie DDR Trust. Results Presentation February Scott Wolstein Dan Hurwitz James Hodgkinson David Dix

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1 Macquarie DDR Trust Results Presentation February 2004 Scott Wolstein Dan Hurwitz James Hodgkinson David Dix

2 lìíäáåé December results Unit price performance Financial risk management DDR market update MDT portfolio update New directors Review of strategy & outlook

3 The results

4 oéëìäíë=çå=íê~åâ US$ '000 A$ '000 Net Profit Attributable to MDT 925 1,265 Basic Earnings Per Unit 0.21c 0.29c Adjusted Earnings Per Unit 1.22c 1.70c Increased forecast distribution to 9.1% annualised to June 2004, rising to 9.4% to June 2005 $2.7m to retained earnings from gain on FX option at listing Interest rates & FX hedging rates better than PDS assumptions MDT s share of property revaluation at listing - US$4.0m Upfront borrowing costs expensed & funded from reserves First distribution to be paid in April 2004

5 méêáçç=êéëìäíë Financial Performance Net Property Income Interest Income Gain on Foreign Currency Option TOTAL INCOME Manager s Base Fee Upfront Borrowing Costs Other Operating Costs Interest Expense Withholding Tax Expense TOTAL EXPENDITURE Net Profit Net Loss attributable to Outside Equity Interest NET PROFIT ATTRIBUTABLE TO MDT Earnings per units (after upfront borrowing costs expensed) Earnings per unit (before upfront borrowing costs expensed) 31 Dec 03 US$ 000 6, ,960 8,825 (305) (5,506) (68) (1,689) (428) 7, c 1.22c 31 Dec 03 A$ 000 9, ,715 12,301 (426) (7,688) (93) (2,359) (601) 11,167 1, , c 1.70c

6 råáí=éêáåé=ééêñçêã~ååé Unit Price ($) ,000 10,000 8,000 6,000 4,000 2,000 Trading Volume ('000) Feb 04 9 Feb Jan Jan Dec Dec 03 1 Dec 03 The unit price of $1.05 on 23 February 2003 was up from post listing trading Post listing trading impacted by concerns about an appreciating Australian dollar Reinforcement of hedging strategy resulted in the unit price stabilising above $1.00 since 31 December 2003

7 Financial risk management

8 _çêêçïáåöë Amount US$374.5 million Weighted average remaining term 4.9 years Fixed component 80% Weighted average interest rate 4.15%* *based on a 30 day US LIBOR rate 1.15% As at 31 December 2003, the Trust s share of borrowings was US$303.2 m (A$402.9 m) Lower weighted average interest rate of 4.15% against a PDS assumption of 4.29% (reflected in updated forecasts) Trust s share of upfront borrowing costs has been expensed as incurred and an amount equal to the Trust s share of these costs has been transferred from equity consistent with PDS Effective gearing rate down at 49.2%, compared with PDS forecasts of 50.3%

9 cçêéáöå=éñåü~åöé=üéçöáåö Average Forw ard R ates for M D T Average Forward Rate AUD/USD FY04 FY05 FY06 FY07 FY08 Strategy largely protects distributions from exchange rate fluctuations over 5 years MDT s main policy is to maintain foreign exchange hedging over 5 years 100% of estimated distributions for the next 2 years 90% of estimated distributions for years 3-5 Hedging updated quarterly Weighted average exchange rate applied for all hedging US$0.6773

10 DDR market update

11 aao=ó ~=ëíêçåö=óé~ê DDR achieved exceptional results in a challenging market Q4 03 occupancy increased 0.4% to 95% Leased rate increased 0.4% to 95.6% Blended basis rentals increased 12.1% on expiring leases New lease rental rates increased approximately 22% Renewals increased approximately 7.3% Outstanding development pipeline, continued tenant roster expansion and an improving economy bodes well for future performance

reasonable occupancy costs: key for maintaining margins Tenant demand will be maintained by

12 méêñçêã~ååé=çêáîéêë Performance highlights Community Shopping Centre sector strength Sector of choice for successful retailers with growth aspirations Sector delivers strong sales and reasonable occupancy costs: key for maintaining margins Tenant demand will be maintained by the consumers desire for value and convenience Independence Commons, Missouri Carillon Place, Florida

and relationships with their best tenants MDT is only perpetual life JV the ideal home for core stabilised assets Other JV s

13 qüé=êçäé=çñ=gsûë=ó aao=c=jaq JV s are central to DDR s business strategy JV s provide DDR with opportunity to redeploy capital for higher returns (development, immature properties) JV s allow DDR to maintain ownership of their best properties and relationships with their best tenants MDT is only perpetual life JV the ideal home for core stabilised assets Other JV s for stabilised assets are closed end (KFC) or higher risk (Coventry) Riverdale Village, Minnesota The Plazas at Great Northern, Ohio

14 MDT portfolio update

15 ié~ëáåö=ìéç~íé Solid leasing year in 2003 for DDR Perimeter Pointe, Georgia 1 million sf of new leases & 2.8 million sf of renewals Strong uplift in new & renewed lease rental levels Minimal new MDT leases reflect strong trend Base rent on Filene s Basement lease (Chicago) MDT occupancy increased to 98.8% from 97.3% at listing Master leased space reduced by 55% including leases signed but not occupied

16 ié~ëé=éñéáêó=éêçñáäé 40% 35% 37.55% 30% 25% % 20% 15% 13.78% 10% 7.62% 7.26% 7.62% 7.31% 9.97% 5% 1.50% 4.62% 2.76% 0% June 2004 June 2005 June 2006 June 2007 June 2008 June 2009 June 2010 June 2011 June 2012 June Annualised Base Rent Average lease expiry is 7.8 years

17 `Üìêå=áå=íÜÉ=rp=êÉí~áä=ã~êâÉí Highly competitive US retail market store closures (Kids R Us, Office Max, Circuit City) Chapter 11 (KB toys, Zany Brainy, Tower Records) No material impact on MDT Kids R Us is only store closure. Tenant obliged to meet lease obligations No KB Toys. Tower Records has affirmed lease Opportunity to re-lease space at equal or higher rents Keys to managing challenges - DDR property management & strength of real estate

18 jaq=ó ~=ëíêçåöi=çáîéêëáñáéç=éçêíñçäáç Public company 97.5% Parent company rated by Standards & Poors 88.0% Average years in business 31 Average market capitalisation 17.2 Top 10 Tenant Diversity Geographic Diversity by ABR g y y Jo Anne Stores 7% Bed Bath & Beyond 7% Best Buy 9% Barnes and Noble 9% Sports Authority 10% Office Max 7% Amc Entertainment 14% Home Depot 10% Kohls 13% TJ Max/ Marshalls 14% Georgia 14% Missouri 7% Florida 5% Ohio 20% Virginia 7% Massachusetts 22% Illinois 12% Minnesota 13%

19 New directors

20 kéï=~ééçáåíãéåíë Steven Guttman delivers complementary portfolio skills in US shopping centre investment management Chairman and CEO of Federal Realty Investment Trust for 30 years to January 2003 David Spruell provides corporate governance and investment management expertise 33 years experience includes roles at Prudential in Australia and CEO of Allianz Asset Management Australia for 6 years Non-executive director of Rabo Financial Advisors Limited and Director of The Efficient Frontier Pty Ltd An additional independent director will be appointed within 12 months of listing

21 Review of strategy & outlook

dêçïíü=çééçêíìåáíáéë Accretive expansion in line with investment criteria Right of first offer over a further 20 properties in the DDR portfolio

22 dêçïíü=çééçêíìåáíáéë Accretive expansion in line with investment criteria Right of first offer over a further 20 properties in the DDR portfolio Distribution Reinvestment Plan to be activated in the coming quarter Retained earnings for security of future income Belden Park Crossings, Ohio

pìãã~êó=~åç=çìíäççâ US market conditions favour Trust s properties Combined management expertise of DDR and Macquarie Property committed to generate out performance for investors Strong leasing

23 pìãã~êó=~åç=çìíäççâ US market conditions favour Trust s properties Combined management expertise of DDR and Macquarie Property committed to generate out performance for investors Strong leasing activity, increased rentals and improved occupancy support positive outlook Forecast distributions for the period ended 30 June 2004 increased to an annualised yield of 9.1 per cent, based on $1.00 issue price Distributions forecast to rise to 9.4 per cent to June 2005

24 Macquarie DDR Trust Results Presentation February 2004 Scott Wolstein Dan Hurwitz James Hodgkinson David Dix

25 j~åèì~êáé=aao=qêìëí This presentation has been prepared by Macquarie DDR Management Limited (MDML) for general information purposes only, without taking into account any potential investors personal objectives, financial situation or needs. Before investing in MDT, you should consider your own objectives, financial situation and needs or obtain independent financial, legal and/or taxation advice. Past performance information provided in this presentation may not be a reliable indication of future performance. Due care and attention has been exercised in the preparation of forecast information, however, forecasts, by their very nature, are subject to uncertainty and contingencies many of which are outside the control of MDML. Actual results may vary from forecasts and any variation may be materially positive or negative. Investments in MDT are not deposits with or other liabilities of Macquarie Bank Limited ABN (MBL) or of any Macquarie Bank Group company and are subject to investment risk, including possible delays in repayment and loss of income or principal invested. None of MBL, MDML or any other member company of the Macquarie Bank Group guarantees the performance of MDT or the repayment of capital from the fund or any particular rate of return. This information contained herein is current as at the date of this presentation. Macquarie Group

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