Aegis060308

Financials
Wilbur Tong
ASX: MPF Bloomberg: MPF AU Reuters: MPF.AX 06 March 2008
Multiplex Acumen Property Fund
1H08 Result: Solid result in a challenging
market
Event
MPF reported a 1H08 NPAT of $15.97M, up 73.9% over the pcp.
Reported normalised net profit for 1H08 was $12.6M, up 16.3% on
1H07. MPF booked a $3.4M gain on asset disposals (most notably
from IPG and Mirvac unlisted funds). NTA remained at the FY07 level
of $1.43 per unit. 1H08 normalised EPU grew 13.1% to 6.23cpu, while
distributions grew 3.4% over the pcp to 5.5cpu.
Implications
Overall we believe MPF has delivered a solid 1H08 result. Retained
cash earnings have increased 11.3% to $14.8M, which provides scope
for MPF to ensure smooth DPU delivery over the short term. MPIF had
a strong period with $35.9M of inflows, providing MPF with a relatively
cheap source of capital in an increasingly challenging market. MPF's
fund-of-funds business model continues to benefit investors seeking
exposure to the unlisted property trust/syndicate market, offering
liquidity and diversification that would otherwise be unachievable from
direct property investments. Declining values experienced in the LPT
securities allocation have been off-set by the increase in value of the
unlisted allocation of the Fund. MPF's Fund gearing is at 17%, with a
'look through' gearing of 61%. We see higher risk going forward at the
'look through' level with cap rates expected to soften over CY08, in
particular secondary assets. Our valuation of MPF has dropped
to $1.46 from $1.58 on the pcp and reflects a FY08 distribution yield of
11% (based on current share price of $1.00).
Investment Opinion
The research on this company has been commissioned and as such
Aegis has received a fee for its initiation and ongoing research
coverage.
No part of either the fee received by Aegis or the compensation paid to
its analysts involved in preparing this report was, is or will be directly or
indirectly, related to the valuation, earnings forecast or views
expressed in this report.
Key Information
Price Performance
Market Statistics
Key Assumptions
Share Price $1.00
Valuation $1.46
Market Cap (M) $205
Shares (M) 202.86
% of Market 0.01
% of Sector 0.04
12 Month Range $0.91 - $1.42
Company Risk
Share Price Risk
Ethical rating
Performance against indices (%)
3 Months 6 Months 12 Months
MPF (24.5) (23.7) (19.0)
Sector (34.6) (32.8) (31.8)
Market (20.0) (14.7) (7.5)
Beta: 0.8
Market risk premium (%): 5.5
Risk free rate (%): 6.1
WACC (%): 10.0
Forecast cashflow (years): 10
Residual value % of total valuation: 55.9
Nominal terminal growth rate (%): 3.0
Earnings Summary
1 NPAT and EPS are adjusted by removing non-recurring items. All the above statistics are derived from normalised earnings.
Yr to Jun NPAT
Rep $M
NPAT1
Adj $M
EPS1
c
EPS chg
%
PER
x
PER rel
All Ords x
PER rel
Sector x
DPS
c
Yield
%
Franking
%
Deferred Tax
%
2007A 29.69 21.34 10.9 4.6 9.2 0.6 0.8 10.7 10.7 0 56
2008F 27.32 23.98 11.8 8.6 8.4 0.6 0.8 11.0 11.0 0 50
2009F 24.08 24.08 11.9 0.3 8.4 0.7 0.9 11.4 11.4 0 50
2010F 24.98 24.98 12.3 3.7 8.1 0.7 0.9 11.7 11.7 0 50
AEGIS Equities Research Pty Ltd ABN 72 085 293 910
Level 6 33 York Street Sydney NSW 2000 Australia
Locked Bag 7 Australia Square Sydney NSW 1215
Phone +61 2 8296 1100 Fax +61 2 9299 3777 Email mail@aegis.com.au Web www.aegis.com.au
Page 1 of 5

Year end Jun. All figures in A$M
Notes:1. The risk ratings are on a 12 month perspective, where five stars denotes low risk and one star denotes high risk. Company risk takes into account expected
financial, strategic and execution risks associated with the company. Share price risk is a measure of the expected volatility of the price and other trading factors.
2. The Ethical rating rates a company on an ethical investment basis where five stars denote very good and one star a poor rating. The score is based on four key factors:
areas of operating, environmental, corporate governance and social factors. For more information see www.aegis.com.au.
Valuation: $1.46 Company risk 1: Share Price risk 1: Ethical rating 2:
Profit & loss summary 2007A 2008F 2009F 2010F
Operating revenue 29.79 32.13 35.87 36.89
Invest & other income (2.94) 1.46 (2.18) (2.17)
EBITDA 25.68 31.39 30.82 31.47
Depreciation/Amort 0.00 0.00 0.00 0.00
EBIT 25.68 31.39 30.82 31.47
Net Interest (4.22) (5.21) (4.50) (4.17)
Pre-tax profit 21.46 26.18 26.32 27.30
Tax expense 0.00 0.00 0.00 0.00
Minorities/Assoc./Prefs (0.13) (2.20) (2.24) (2.32)
NPAT 21.34 23.98 24.08 24.98
Non recurring items 8.35 3.34 0.00 0.00
Reported profit 29.69 27.32 24.08 24.98
NPAT add Goodwill & Pref 0.00 0.00 0.00 0.00
Adjusted profit 21.34 23.98 24.08 24.98
Cashflow summary 2007A 2008F 2009F 2010F
EBITDA 25.68 31.39 30.82 31.47
Working capital changes (6.97) 0.04 0.07 0.03
Interest and tax (4.64) (4.73) (4.50) (4.17)
Other operating items 0.00 (0.50) 0.38 0.15
Operating cashflow 14.07 26.19 26.78 27.48
Required capex 0.00 0.00 0.00 0.00
Maintainable cashflow 14.07 26.19 26.78 27.48
Dividends (14.50) (20.71) (22.74) (23.43)
Acq/Disp (34.24) (29.54) 0.00 0.00
Other investing items 0.00 2.54 0.00 0.00
Free cashflow (34.68) (21.51) 4.04 4.05
Equity 9.60 35.96 0.00 0.00
Debt inc/(red'n) 28.35 (4.38) (4.04) (4.05)
Balance sheet 2007A 2008F 2009F 2010F
Cash & deposits 4.65 10.00 10.00 10.00
Inventories 0.00 0.00 0.00 0.00
Trade debtors 14.39 9.42 9.42 9.42
Other curr assets 0.00 0.00 0.00 0.00
Total current assets 19.05 19.42 19.42 19.42
Prop., plant & equip. 0.00 0.00 0.00 0.00
Non-curr intangibles 0.00 0.00 0.00 0.00
Non-curr investments 381.00 411.99 411.99 411.99
Other non-curr assets 1.87 3.09 3.09 3.09
Total assets 401.92 434.49 434.49 434.49
Trade creditors 1.28 1.32 1.39 1.42
Curr borrowings 0.00 0.00 0.00 0.00
Other curr liabilities 5.50 7.01 7.40 7.54
Total current liab. 6.78 8.33 8.79 8.97
Borrowings 89.00 79.90 75.87 71.82
Other non-curr liabilities 8.78 9.05 9.05 9.05
Total liabilities 104.56 97.29 93.70 89.83
Minorities/Convertibles 9.60 46.66 48.90 51.23
Shareholders equity 297.36 337.20 340.78 344.66
Ratio analysis 2007A 2008F 2009F 2010F
Revenue growth (%) 24.5 7.9 11.6 2.9
EBITDA growth (%) 15.5 22.2 (1.8) 2.1
EPS growth (%) 4.6 8.6 0.3 3.7
EBITDA/Sales margin (%) 86.2 97.7 85.9 85.3
EBIT/Sales margin (%) 86.2 97.7 85.9 85.3
Tax rate (%) 0.0 0.0 0.0 0.0
Net debt/equity (%) 29.3 24.1 22.6 21.1
Net debt/net debt + equity (%) 22.7 19.4 18.4 17.4
Net interest cover (x) 6.1 6.0 6.9 7.6
Payout ratio (%) 98.4 93.3 95.9 95.2
Capex to deprec'n (%) 0.0 0.0 0.0 0.0
NTA per share ($) 1.43 1.43 1.44 1.45
ROA (%) 7.4 7.3 7.1 7.2
ROE (%) 8.1 8.3 8.3 8.5
Multiple analysis 2007A 2008F 2009F 2010F
Market cap (M) 205
Net debt ($M) 109.00
Peripheral assets ($M) (0.00)
Enterprise value ($M) 314.34
EV/EBIT (x) 12.2 10.0 10.2 10.0
EV/EBITDA (x) 12.2 10.0 10.2 10.0
EV/EBITDA All Ind (x) 7.4 6.6 6.1 5.6
EV/EBITDA rel All Ind (x) 1.7 1.5 1.7 1.8
P/E (x) 9.2 8.4 8.4 8.1
P/E rel All Ind (x) 0.6 0.6 0.7 0.8
P/E rel All Ind ex banks (x) 0.5 0.5 0.6 0.6
P/E sector (x) 12.1 10.6 9.5 8.6
P/E rel sector (x) 0.8 0.8 0.9 0.9
Assumptions 2007A 2008F 2009F 2010F
GDP growth (%) 2.50 3.02 3.64 3.32
Interest Rates (%) 6.33 7.12 7.50 7.38
Inflation (%) 3.09 2.47 2.50 2.50
Notes To Accounts
All income statement items (except reported profit) now exclude
Goodwill Amortisation as per the new IFRS requirements. We also
exclude revaluation gains from reported profit to estimate the
operating profit generated by the Fund.
Copyright © 2000 - 2007 Aegis Equities Holdings Pty Limited. All rights reserved.
This information must be read in conjunction with the Legal Notice which can be located at http://www.aegis.com.au/public/disclaimer.aspx.
Page 2 of 5

TABLE 1: RESULTS SUMMARY
Source: Company/Aegis Equities
Key Highlights
Reported result: After adjusting for minority interests (Multiplex Property Income Fund), MPF reported a 1H08 NPAT of
$15.97M, an increase of 73.9% on 1H07. MPF's 1H08 normalised NPAT was $12.6M, an improvement of 14% over the
pcp. Excluding disposal of investments, NPAT would be $9.2M, a 7% drop from $9.9M in the pcp.
Total assets Increased by 9.3% over the pcp to $439.2M.
Unlisted: This growth was driven by $13.9M in revaluation gains, and net investments of $20.3M.
Listed: Net investments totaled $13.1M, which was offset by a $16.5M decrease in the mark-to-market value of
listed securities.
Net tangible assets: NTA remained at the FY07 level of $1.43 per unit. Losses experienced in the LPT allocation have
been off-set by the increase in value of the unlisted allocation of the Fund.
Distribution: 1H08 distribution grew 3.4% to 5.5cpu, which led to a seventh consecutive increase in distributions.
Earnings per unit: Normalised EPU increased 13.1% on 1H08 to 6.23cpu. Excluding brokerage income, EPU stood at
5.78cpu, an improvement of 18.4% over the pcp. After stripping out asset disposals, our adjusted EPU was 4.54cpu,
7% down on pcp.
Retained earnings: Realised retained earnings for 1H08 was $14.8M, an improvement of 11.3% on the pcp.
Debt levels: MPF's 1H08 gearing was 17%, a decrease of 4.2% on the pcp and below MPF's target of 20%-
25%. Interest coverage on MPF is 6.5x. Interest rates are fixed on 93% of borrowings for an average of 3.4 years at
6.96% p.a. (including fees). On a look-through basis (including debt in underlying investments), gearing was 61%.
Income Fund: 1H08 saw the inflow of $35.9M into MPIF, bringing its total assets to $80.5M. MPF's investment in 100%
of the ordinary equity of the Income Fund realised an annualised return of 19.5%.
Distribution Reinvestment Plan (DRP): Due to the strong performance of MPF's Income Fund, MPF suspended the
DRP as of 11 September 2007.
($'000) 1H07 1H08 1H08 v 1H07
Income
Distribution Income 9,133 11,447 25%
Distributions from Equity Accounted Investments 2,539 2,539 0%
Interest Income 305 366 20%
Brokerage Income 1,243 916 -26%
Gain on Disposal 951 3,419 260%
Other -94 0 n/a
Total Income 14,077 18,687 33%
Expenses
Finance Costs-external -2,294 -3,091 35%
Responsible entity fees -687 -905 32%
Other -244 -971 298%
Total Expenses -3,225 -4,967 54%
Less Minority Interests 0 -1,094 n/a
Normalised NPAT 10,852 12,626 16%
Adjustments
Share of Associate Profit Less Distributions -1,761 3,344 n/a
Hedging 94 4 n/a
Reported NPAT 9,185 15,974 74%
DPU (per share) 5.32 5.50 3%
Page 3 of 5

Investment Portfolio
The investment portfolio is spread across 29 listed property securities, 32 unlisted property funds, 5 property sectors,
and 11 geographic areas. The weighted average lease duration is 5.7 years.
Portfolio allocation: is 78% unlisted property securities, 21% listed property securities and 1% cash, in line with the
Fund's strategic objectives (refer Figure 1).
The portfolio is exposed to 31 different managers, with the top seven managers accounting for approximately 75% of the
portfolio by investment value (refer to Figure 3 below). They are major institutions with strong industry experience and
significant industry expertise.
Property sector diversification (refer to Figure 2). MPF has continued its bias towards the office sector, increasing its
weighting by 1.4% to 42%. The weighting to the retail sector has increased by 1.2% to 34%, and developments have
dropped 2% to 4%. Industrial and other (storage, healthcare, childcare) sectors weightings have marginally decreased,
0.9% and 0.5% respectively to 11% and 9%.
MPF has further diversified its portfolio geographically over the pcp. In July, 2007, MPF invested $12.8M in the Multiplex
European Property Fund (ASX: MUE) which owns a diversified portfolio of 67 properties in Germany. The portfolio is
now well spread geographically, with properties across all Australian states, as well as internationally in Europe, USA
and New Zealand (Figure 4).
MPF has limited exposure to Centro vehicles 6%, MCS21, MCS22 and MCS28 (unlisted). We view the underlying
assets in the unlisted vehicles as investment grade, however we are concerned with the outcome of Centro's refinancing
issues, and will be monitoring its progress closely.
FIGURE 1: ASSET CLASS DIVERSIFICATION AS AT 31
DECEMBER 2007
Source: MPF
FIGURE 2: PROPERTY SECTOR DIVERSIFICATION AS AT 31
DECEMBER 2007
Source: MPF
FIGURE 3: MANAGER DIVERSIFICATION
Source: MPF
FIGURE 4: GEOGRAPHIC DIVERSIFICATION
Source: MPF
Page 4 of 5

Parent Company - Corporate Action Issues
On 17 December 2007, Brookfield Asset Management (BAM) acquired all of the stapled securities of Multiplex Group,
which has resulted in BAM ultimately owning the responsible entity of Multiplex Capital Management Limited, with
ownership of 23.6% of the fund's units.
Brookfield is focused on property, power and infrastructure assets, with over US$95B of assets under management and
is co-listed on the New York and Toronto stock exchanges (NYSE/TSX:BAM). It is one of the largest owners of
commercial properties in the world.
Summary
We believe MPF has delivered a solid 1H08 result. Retained cash earnings have increased 11.3% to $14.8M, which
provides scope for MPF to guarantee smooth DPU delivery over the short- term. MPIF had a strong period with $35.9M
of inflows and the financial health of the Fund has allowed a seventh consecutive increase in distribution to an
annualised level of 11cpu.
The launch of MPIF continues to provided MPF with a steady capital flow, with improved funding flexibility to pursue
earnings-accretive investments. MPIF, which is a sub-trust of MPF, offers investors income-only returns whilst MPF
benefits from the capital gains achieved.
MPF's business model continues to be structured in a manner beneficial to investors seeking exposure to the high-
yielding unlisted property trust/syndicate market with a tax-deferred component. At the same time, they can benefit from
higher levels of liquidity and diversification, compared with investments in direct property or individual unlisted funds.
MPF's gearing was 17% over 1H08, a decrease of 4.2% on the pcp and below MPF's target of 20%-25%. On a look-
through basis (including debt in underlying investments), gearing was 61%. We are of the view that cap rates across the
Australian market are likely to soften over the short to medium term, with yields in secondary assets expected to re-rate
(expand). Over the coming 12-18 months, we expect spreads between premium and secondary grade assets to revert
back to long-term averages. We see risk to the health of the underlying unlisted vehicles due to the use of secondary
assets to achieve the higher yields on retail offerings. We remain cautious of the high gearing levels in the underlying
securities coupled with secondary assets, where cap rate softening can exert pressure on debt covenants and the
overall health of balance sheets.
Our valuation of MPF has dropped to $1.46 from $1.58 on the pcp due to revised revenue forecasts, and implies a FY08
distribution yield of 11% (based on current share price of $1.00).
Page 5 of 5

Peter Leodaritsis
Managing Director
Phone: 61 2 8296 1100
peter.leodaritsis@aegis.com.au
Mamun Rashid
Chief Operating Officer
& General Counsel
Phone: 61 2 8296 1160
mamun.rashid@aegis.com.au
RESEARCH
Sharon Loaiza
Head of Research
Phone: 61 2 8296 1131
sharon.loaiza@aegis.com.au
Ravi Reddy
Head of Equities Analysis
Phone: 61 2 8296 1165
ravi.reddy@aegis.com.au
Rodney Lay
Head of SP
Phone: 61 2 8296 1106
rodney.lay@aegis.com.au
SALES
Craig Northey
Head of Sales
Phone: 61 2 8296 1114
craig.northey@aegis.com.au
Nigel O’Brien
Business Development Manager
Phone: 61 2 8296 1166
nigel.o’brien@aegis.com.au
Joyce Sivris
Business Development Manager
Phone: 61 2 8296 1125
joyce.sivris@aegis.com.au
Joanna Judd
Business Development Officer
Phone: 61 2 8296 1102
joanna.judd@aegis.com.au
IMPLEMENTED RESEARCH MODELS
Mandy Depangher
Client Services Manager
Phone: 61 2 8296 1159
mandy.depangher@aegis.com.au
CLIENT SERVICES INFORMATION TECHNOLOGY
Pamella McIntosh
Manager Client Services
Phone: 61 2 8296 1124
pamella.mcintosh@aegis.com.au
Evan Ferris
Chief Technical Officer
Phone: 61 2 8296 1116
evan.ferris@aegis.com.au
Disclaimer & Disclosure of Interest
This publication has been prepared by Aegis Equities Research Pty Limited (“Aegis”) (ACN 085 293 910), an Australian Financial
Services Licensee (AFSL no. 225072). Whilst the information contained in this publication has been prepared with all reasonable care
from sources, which Aegis believes are reliable, no responsibility or liability is accepted by Aegis for any errors or omissions or
misstatements however caused. Any opinions, forecasts or recommendations reflects the judgement and assumptions of Aegis as at
the date of publication and may change without notice. Aegis and its officers, agents, employees, consultants and its related bodies
corporate, exclude all liability whatsoever, in negligence or otherwise, for any loss or damage relating to this document to the fullest
extent permitted by law. This publication is not and should not be construed as an offer to sell or the solicitation of an offer to
purchase or subscribe for any investment. Any securities recommendation contained in this publication is unsolicited general
information only. Aegis is not aware that any recipient intends to rely on this publication or of the manner in which a recipient
intends to use it. In preparing our information, it is not possible to take into consideration the investment objectives, financial
situation or particular needs of any individual recipient. Investors should obtain individual financial advice from their investment
advisor to determine whether recommendations contained in this publication are appropriate to their investment objectives, financial
situation or particular needs before acting on such recommendations. This publication is not for public circulation or reproduction
whether in whole or in part and is not to be disclosed to any person other than the intended recipient, without obtaining the prior
written consent of Aegis. Aegis its officers, employees, consultants or its related bodies corporate may, from time to time hold
positions in any securities included in this report and may buy or sell such securities or engage in other transactions involving such
securities. Aegis and its Directors and associates declare that from time to time they may hold interests in and/or earn brokerage,
fees or other benefits from securities mentioned in this publication.
Aegis, its officers, employees, consultants and its related bodies corporate have not and will not receive, whether directly or
indirectly, any commission, fee, benefit or advantage, whether pecuniary or otherwise in connection with making any
recommendation contained in this report and/or on this web site. Aegis discloses that from time to time, it or its officers, employees
and its related bodies corporate may have an interest in the securities, directly or indirectly, which are the subject of these
recommendations; may buy or sell securities in the companies mentioned in this publication; may effect transactions which may not
be consistent with the recommendations in this publication; may have directorships in the companies mentioned in this publication;
and/ or may perform paid services for the companies that are the subject of such recommendations. However, under no
circumstances, has Aegis been influenced, either directly or indirectly, in making any recommendation contained in this report and/or
on this web site.
The information contained in this publication must be read in conjunction with the Legal Notice that can be located at
http://www.aegis.com.au/disclaimer.asp.

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