Who is FKP?• FKP is a leading diversified property and

investment group• Core business: construction, development,

retirement , and funds management• Based in Queensland, but with operations in five

states• Listed on ASX in 1993; entered ASX200 in 2003• History of strong performance and solid returns to

shareholders• Under the direction of CEO, Peter Brown, FKP has

embarked on a new phase of national expansion

Interim Results- Highlights

• Net profit after tax up 40% to $16.5million (2002: $11.74million)

• Interim dividend of 7 cents per share fully franked, up 27% (2002: 5.5cents)

• Revenue increased marginally to $144.2million, but produced stronger profit yield

• Diversified revenue streams – all areas performed well

Key Financial Results - HY

10000.550Gearing (%)

-100100Level of Franking (%)

11145161NTA (cents)

275.57Dividend (cents)

3710.3614.36EPS (cents)

4011,73916,476Operating Profit After Tax ($‘000s)

1.2142.466144,204Total Revenue ($‘000s)

Change (%)20022003

Summary Balance Sheet

165,644196,317Total Equity11,276Outside Equity Interest

54,23073,241Retained Profits7,1896,035Reserves

104,225105,765Contributed Equity

165,644196,317Net Assets

92,341270,144Total Liabilities33,638111,975Non Current Liabilities58,703158,169Current Liabilities

257,985466,461Total Assets102,505218,193Non Current Assets155,480248,268Current Assets

2002 ($‘000s)2003 ($‘000s)

Half Year Results -Profit Growth History

1.1

6.9

10.3

14.3

0

2

4

6

8

10

12

14

16

2000 2001 2002 2003

EPS

(cen

ts)

Half Year Results -Profit Mix

Land Subdivision45%

Retirement25%

Residential Apartments

18%

Funds/Asset Management

0%Construction4%

Commercial Development

8%

South Australia2%

Tasmania4%

New South Wales12%

Victoria1%

Queensland81%

by Division by Geography

Half Year Results -Revenue

• Higher yield from stable revenue• Recurring revenue increased by 22%• Land and retirement divisions strongest performers

for the half year

Land Subdivision

25%

Retirement17%

Residential48%

Funds Management

0%

Construction7%

Commercial2%

Other1%

Half Year Results -Dividends

• Set goal in 2002 to lift EPS and dividends by a minimum of 10% per annum

• Have consistently exceeded this goal

1

55.5

7

0

1

2

3

4

5

6

7

8

2000 2001 2002 2003

Cen

ts

1.8

10.4

14.2

17.8

0

2

4

6

8

10

12

14

16

18

20

2000 2001 2002 2003

% R

etur

n

Half Year Dividend Payout History Return on Shareholders' Funds History

Half Year in Review -Key Contracts

• Stage 2 – Newstead Riverpark Gateway• part of $1 billion landmark urban renewal project

• 2 distinct precincts - mixed use and commercial

• in excess of 400 residentialapartments

• 20,000 sqm retail and commercial space

• end value $300 million

Half Year in Review -Key Project

• Peregian Springs• Over 1,700 lot master planned community• fully master planned community• Sold over 109 lots in the half year• Total sales to date 500 of the 1,783 lots• 1,283 left to settle• Gated community

Park Avenue approved• 96 prestige residences

• Coolum Ridges to come on line

Half Year in Review -Key Works in Progress

Residential Apartments• $30M Soho Apartments (Brisbane, QLD) - 88 of 96 sold• $32M Seamark on First (Sunshine Coast, QLD) - 60 of 70 sold• $30M Inn on the Park (Brisbane, QLD) - 90 of 94 sold• $40M 212 Margaret (Brisbane, QLD) - sold out• $45M Marquis on Main (Gold Coast, QLD) - 38 of 43 sold• $40M Macarthur Chambers (Brisbane QLD) - 51 of 75 sold• $20M Rosebery (Sydney, NSW) - 36 units

Commercial Developments• $18.5M Stage 1 Norwest Business Park (Sydney, NSW) - 8,000sqm• $14M Paradise Road (Brisbane, QLD) - 120,000sqm• $75M Gateway 2000 - JV (Brisbane, QLD) - 78,000sqm

Half Year in Review -Key Works in Progress

Land Subdivisions• Peregian Springs (Sunshine Coast, QLD) - 1,283 lots available• Emmadale Park (Gladstone, QLD) - 303 lots available• Ocean Acres (Torquay, VIC) - 132 lots available• Diamond Creek (Melbourne, VIC) - 50 lots available• Castle Hill (Sydney, NSW) - 4 lots available

Retirement - FKP Australian Retirement Homes• The Domain (Gold Coast, QLD)• Bridgeman Downs (Brisbane, QLD)• Peregian Springs (Sunshine Coast, QLD)• Mingarra (Croydon, VIC)• Derwent Waters (Hobart, TAS)

Half Year in Review -Corporate Highlights

• Acquisition of Forest Place Group (FPG)

• Continued to meet objectives and milestones of the 5 yr growth strategy

• Rollout of new FKP brands

Five Year Strategy -Diversification

• Strong focus on building recurring income streams -retirement and funds management divisions

• Adopted diversification strategy to buffer cyclical nature of the property sector

• FKP has interests across all property sectors• Flexibility to invest capital in the division that can

maximise profits

4%

6%

19% 3%

47%

21%

2003-200417%

21%

20%0%

25%

17%

2002-2003 Profit MixConstructionFunds/Asset ManagementRetirementLand SubdivisionCommercial DevelopmentResidential Apartments

Five Year Strategy -Recurring Revenue (Retirement)

• Retirement division profit increased to $7.5 million at 31/12/2003 (2002: $3.2 million)

• Deferred Management Fees (DMF) increased to $6.7million (2002: $5.4 million)

• New retirement sales reached $15.3milliion (2002: $6.5million)

• FKP is well on the way to reaching the 5-year target of 5,000 units:• 3,790 independent living units and serviced apartments• 150 hostel and nursing home beds• 1,062 future development sites available

Five Year Strategy -Retirement Growth in Units

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

1998/99

1999/00

2000/01

2001/02

2002/03

2003/04

Years

Uni

ts

No of ILU units No of SA UNITS No of NH & Hostel beds

Five Year Strategy -Recurring Revenue (Funds Management)

• FKP Commercial Property Trust 1 – annualised 10.6% return

• Exceeds PDS forecast of 9.3%

• Entered contract to purchase $41M 31 Queen St, Melbourne (settled in Feb 04) as Property Trust No.2

Five Year Strategy -Geographical Expansion

• Following success in QLD, applying model to NSW and VIC• Controlled geographic expansion – NSW presence already

established and growing • Key projects

• Rosebery (Sydney, NSW) - 36 units• Norwest Business Park Stages 2,3 (Sydney NSW) - 30,000 sqm

(stage 2 - 20,000sqm mixed use commercial building)• Collingwood strata office (Melbourne, VIC) - 4,500sqm

1% 14%1%

79%

5%

2003-2004

0%

85%

1% 12%2%2002-2003 Revenue Mix

QueenslandNew South WalesSouth AustraliaTasmaniaVictoria

Five Year Strategy -Financial Growth

To date, FKP has been a strong performer – profit, revenue, returns to shareholders

12.117.1

26.7

36

05

10152025303540

2000/2001

2001/2002

2002/2003

2003/2004f'cast

Mill

ions

Net Profit after Tax

6

1012

15

02468

10121416

2000/2001

2001/2002

2002/2003

2003/2004f'cast

EPS

(cen

ts)

Dividend Payout History

Future profit drivers -Why is FKP a strong investment

Solid residential base in SE Qld

Residential expansion NSW, VIC

Commercial/industrial expansion NSW, VIC

Consolidation in retirement industry

Growth in funds management