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FKP PROPERTY GROUP

comprising FKP LIMITED ABN 28 010 729 950 and FKP PROPERTY TRUST ARSN 099 648 754

the responsible entity of which is FKP FUNDS MANAGEMENT LIMITED

ABN 17 089 800 082, AFS Licence number 222273

ASX ANNOUNCEMENT Date 28 October 2005

Subject AGM 2005 – Chairman’s Address

In my first year as chairman I am proud to confirm another record profit delivered by the group, reflecting an impressive increase of 50% in net profit after tax for 2004/2005. That result reflected good earnings per security growth of 12% for the year and growth in dividends / distributions of 67% over the prior year. Another outstanding result for the group was reaching 35% recurring income for 2004/2005. This was primarily delivered through growth in the group’s retirement investment business and positions FKP very well to meet its recurring income objective of 50% by 2008. This is a target that was set in 2003 as part of the group’s strategic 5 year vision. The Board is very pleased with these results. Peter Brown will provide more detail of these results, following my presentation. I would also mention that management is well advanced with the implementation of the new IFRS accounting standards and as reported in the Annual Report, the expected adjustments to the 2005 result are not material. At the previous AGM, securityholders voted in favour of the stapling proposal, allowing FKP to restructure, and trade as a stapled entity, in order to better position the group to meet its future ambitions. The benefits of that restructure can already be seen, through improved financial capacity, and the increase in securityholder value by approximately 65% since announcing the stapling proposal. I have already outlined FKP’s excellent annual result. That result exceeded the Product Disclosure Statement forecast, issued by the group in October 2004, and was achieved in a year, which saw the group raise approximately $130m of new equity.

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Indeed 2005 was an eventful and exciting year for your company. In 2005/2006 FKP will continue to further invest in retirement village assets, in order to achieve its stated recurring income objectives. Since the release of its annual result, the group has acquired a portfolio of retirement villages across Brisbane, the Gold Coast and Adelaide, and through the joint venture vehicle formed with Macquarie Bank has entered into a takeover offer, for the leading retirement village operator in New Zealand, Metlifecare, and yesterday acquired another New Zealand retirement village operator Private Life Care. The joint venture with Macquarie Bank is seen as an important step for the Group as its couples the Group’s development and management skills of retirement village assets with Macquarie Bank’s financial capacity and experience in overseas transactions. The joint venture will seek further acquisitions in both Australia and New Zealand. I would like to thank my fellow Directors for another year of commitment and contribution to the group.

Some of you maybe aware that sadly in January of this year the founder of Peter Kurts Properties Limited, Mr Peter Kurts passed away, aged 81. An extremely successful, self-made property developer and investor, he will be remembered for his straightforward approach to business, belief in mentoring, determination and passion. He was also a remarkable yachtsman, having represented Australia in six Admiral’s Cups, competed in 31 Sydney-Hobart races (winning two) and led the tall ships into Sydney Harbour for Australia’s bicentennial. He sailed around Cape Horn aged 70, and frequently skippered his own yacht “Love and War” single-handedly from Sydney to Lord Howe Island. Whilst having never joined the Board of FKP after the merger in 1998, his contributions importantly helped shape the group as it is today.

There have been several changes to the Board this year. I thank founding Director Des Forrester, who will not seek re-election today, for his dedication and extensive contribution to the Board and for his efforts as Managing Director of the construction business from 1987 to 2000. I wish you well in your further pursuits. Mr Len McKinnon who is based I Sydney joined the Board in May 2005. Len’s professional experience in property finance will prove valuable to the group. I also thank former Chairman John Jamieson, who retired from the Board after last year’s AGM, for his strong leadership and contribution to the growth of the group over his time on the Board and his 3 years as Chairman.

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On behalf of the Board, I would like to take this opportunity to also thank the management team and their staff, for their professionalism and dedication to the delivery of the group’s outstanding result for 2004/2005 The Board and management will continue to focus on the delivery of FKP’s stated five year strategic plan. We are one third of our way through this financial year and at this stage are pleased with current trading. Increased investment in the retirement and property investment & funds management divisions are prime areas for growth as these business divisions contribute to a secure future for FKP by providing securityholders dependable recurring income. Our land division, with its flagship Peregian Springs estate continues its strong performance, despite slowing residential markets experienced across Australia. The development division is in an enviable position, with its premium quality development pipeline, across all property markets, securing future earnings, and leaving the team to focus on profit delivery. Further expansion is also planned into the NSW and Victorian markets. The outlook for 2005/2006 is positive for continued growth in EPS and distributions and we are on track for another year of record profits. I thank you for your ongoing support. Ben Macdonald Chairman

Annual General Meeting 2005Managing Director’s Address

Peter Brown

2

Presentation Outline

Strategic Vision

Financial Highlights

Divisional Overview

3

FKP Strategic Vision

Vision to become a fully diversified national property group

FKP remains committed to our key strategic objectives– Diversification of operating activities

– Growth of recurring earnings – minimum 50% by 2008

– Measured expansion into NSW and Victoria

– Build on integrated business model

4

Highlights

Compound NPAT growth 46% pa from 2001

Net Profit After Tax ($m)

26.7

36.7

56.1

17.112.1

0

10

20

30

40

50

60

1 2 3 4 5

2001 20032002 2004 2005

+50%

5

Highlights

Compound EPS growth 34% pa from 2001

Earnings Per Security (CPS)

2001 20032002 2004 2005

34.530.8

10.715.1

23.5

0

5

10

15

20

25

30

35

40

1 2 3 4 5

+12%

6

Highlights

Compound DPS growth 43% pa from 2001

Distribution Per Security (CPS)

2001 20032002 2004 2005

25

1512

106

0.0

5.0

10.0

15.0

20.0

25.0

30.0

1 2 3 4 5

+67%

7

FKP business structure

FKP LimitedFKP Property Trust

Property Investment& Funds Mgt

Retirement Investment

FKP Property GroupStapled Security Holders

Norwest(50% interest)

Development

NSWVictoriaQueensland

Land

8

Highlights

All four business divisions delivered growth

Well on track to meet 50% recurring income objective

Divisional EBIT contribution:

30 June 2005

22%

43%

10%

25%

2005

%

11%19,392Development

1170%10,132Property Investment & Funds Management

35%22,975Retirement

38,206

2005

$’000Increase

20%Land

9

Highlights

Low gearing positions FKP well for growth objectives

Gearing

2001 20032002 2004 2005

20%

15% 16%

23%

7%

0%

5%

10%

15%

20%

25%

1 2 3 4 5

Divisional overview

11

Retirement InvestmentRetirement investment division delivered EBIT of $23m, up 35%

Retirement investment division constituted 25% of the group’s 2004/2005 earnings

Division delivered earnings growth due to larger portfolio and accumulated capital gains

FKP owns and operates approximately 5,300 units, since its recent acquisition of 14 retirement villages across Brisbane, Gold Coast and Adelaide

Portfolio size provides smoothing of cash flow for annuity style income

Actively seeking further business expansion

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NZ Retirement InvestmentFormed Retirement Villages New Zealand (RVNZ), an equally owned joint venture with Macquarie Bank

Recently acquired Private Life Care, a leading retirement village owner and operator in New Zealand with a total of 611 units

Recently acquired 60% of New Zealand’s leading retirement village operator Metlifecare, with an offer for the additional 40% soon to come. This will add a further 1,800 units

Retirement Investment

14

Property Investment & Funds MgtProperty investment & funds management division delivered EBIT of $10.1m first full year and constituted 10% of the group’s 2004/2005 earnings

Approximately $220m of assets owned and managed at October 2005

Active management has resulted in 99% portfolio occupancy

FKP Commercial Property Trust No. 1 continues to outperform PDS forecasts

Committed to launching new funds management product in this financial year

Continue to source investment opportunities to add to the existing property investment portfolio

Take advantage of FKP’s ability to build quality property through its internal development and construction skills, enjoying the benefits of its fully integrated business model

Property Investment & Funds Mgt

16

LandLand division delivered EBIT of $38.2m, up 20%

Land constituted 43% of the group’s 2004/2005 earnings

Peregian Springs estate performed very well with strong sales in the second half of the year

First half of the year included sale of school site at Coolum Ridges

Received development approval for Coolum Ridges (adjacent to Peregian Springs), now under appeal

Land holdings are well positioned in all respects to deal with the softer market currently being experienced

Interstate migration continues to Sunshine Coast, which has very strong employment growth

Land

18

Development divisionThree operating units

– Queensland

– NSW

– Victoria

Operations in− Commercial

− Industrial

− Retail

− Retirement units

− Residential apartments

− Construction Apartments

Commercial

Construction Projects

Brisbane

SydneyMelbourne

Sunshine Coast

Retirement

19

Development DivisionDevelopment division delivered EBIT of $19.4m, up 11%

This division constituted 22% of the group’s 2004/2005 earnings

Decision taken in 2003 to reduce apartment exposure in 2005/2006 is now validated

Successful acquisition of new projects to add to its premium quality pipeline across all property sectors

Higher emphasis on commercial development projects in 2005/2006

FKP will continue medium term roll out of Board approved development pipeline of over $1b

Continued roll out of retirement village unit pipeline of approximately 1,200 units

Construction team will continue to support the group’s expansion delivering quality product, and seek profitable external opportunities

Development Division

21

FKP Property Group

Off market transaction to acquire a 49.9% economic interest in Norwest Limited from Mulpha for $143m

Portfolio of 1,500 residential land lots and 42ha of commercial development in growth areas of Sydney

Expanded development pipeline provides sustainable earnings growth

Significant opportunities for FKP’s development, construction, retirement and funds management activities

Norwest Acquisition overview

Our People

It is the ability to work together which determines our success

Thank you to each employee for your contribution to FKP’s excellent record of growth and superior returns provided to securityholders

Growth. Diversity. Ambition.