ASX ANNOUNCEMENT

ASX ANNOUNCEMENT

1 26 February, 2008
VALAD ANNOUNCES 139% INCREASE IN UNDERLYING EARNINGS;
REAFFIRMS FY08 FORECAST Solid performance from diverse operations across 13 countries Proven funds platform, raising A$1.2 billion of equity and debt in 2H08 AUM of A$20.5 billion, diversified by sector, geography and business line Continued focus on integration and consolidation of Australasian, European and
UK platforms SYDNEY: Valad Property Group (ASX: VPG) today announced underlying earnings 1 of A$74.7 million for the six months to 31 December 2007, an increase of 139% on the
previous corresponding period. Distributions for the period were 6.25 cents per security, up
from 5.40 cents per security and underlying earnings per security were unchanged at 5.00
cents. Valad reaffirms its forecast earnings and distribution per security for FY08 of 12.5
cents, subject to market conditions not deteriorating further.

Valad traditionally has an earnings skew towards the second half of the year and this year
is no different. Our 1H08 EPS represents 40% of expected full year earnings. We have had
an excellent start to the second half of FY08 and remain comfortable that we will meet our
earnings and distribution forecasts, said Valads Chairman Stephen Day.

Each of our four business lines including Property Ownership, Development & Trading,
Funds Management and Valad Capital Services (VCS) are tracking well and have provided
the Group with solid broad-based performance. Our presence across 13 countries enables
us to manage earnings by focusing on the sectors and geographies where opportunities
exist, added Mr Day.

Capital Management
No unfunded debt expiring in FY08 On balance sheet gearing (net debt / total assets) of 32%; look through 2 gearing of 41% A$1.2 billion of debt available including over A$450 million available for general
corporate purposes Fund debt is plain vanilla, non-recourse to Valad and backed by property assets Plan to maintain gearing at lower end of target range (40% to 50% on a look
through basis). Non-core asset sales, establishing VCS fund product and other
recycling opportunities may see gearing temporarily drop below range Jennifer Lambert, Valads Group Chief Financial Officer, said, In the six months to
December we have raised more than A$2 billion in debt from seven banks for our balance
sheet, joint ventures and funds. Since December 2007 we have raised more than A$400
million on the same basis. Valad maintains strong relationships with major financiers and 1 After income tax and before non-cash items (being: amortisation of intangibles, movement in fair value of investment properties and employee securities ownership plan non-cash benefits). 2 Look through gearing defined as on balance sheet gearing in addition to Valads share of gearing in all Joint Ventures, including KVSI, Goldfields, Craigieburn, VCP and Vuro. ASX ANNOUNCEMENT

2 we remain comfortable with our financial position. We are also pleased to advise that none
of our facilities are subject to cross collateralisation, indemnities or guarantees.

Operational Highlights
Property Ownership 145 properties on balance sheet and within JVs valued at
A$1.8 billion and generating solid recurring earnings Development & Trading 43 development projects with completion value of A$2.3
billion delivering pipeline of earnings.1H08 profits were derived solely from UK
assets. Expect earnings from Australia and NZ to contribute in 2H08 Funds Management Excellent start to 2H08 with more than A$1.2 billion of debt
and equity raised into four funds; anticipate 2H08 fund margins to improve in light
of new fund and strategic joint venture initiatives VCS - Tracking ahead of forecasts in terms of both coupon and profit share;
plans to introduce third party equity by end of calendar year Valad is benefiting from having a well diversified, simple business structure.

The Property Ownership business performed strongly achieving 46% of 1H08 EBITDA. The
portfolio is weighted to Australia and New Zealand with approximately 60% of the Groups
total property assets by value and number.

Commenting on the Groups property ownership in the UK, Peter Hurley, Valads Executive
Chairman Europe said, Valad has been reasonably insulated from the full force of the UK
market downturn given our value-add approach. Cap rate increases have been somewhat
offset by Valads focus on properties where there are lease-up and repositioning
opportunities. This drives higher rents and has a positive impact on valuations, all other
things being equal.

The Trading & Development business contributed 10% of 1H08 EBTIDA. These earnings
were generated entirely from the UK where the Group successfully delivered on its
trademark model of opportunistically acquiring, adding value to and divesting property
assets. This is demonstrated by the sale of six properties sold at a premium to the price that
Valad acquired them in July 07.

The Funds Management business contributed 17% of 1H08 EBITDA, with the global
platform now comprising 17 major funds.

We have a market leading funds management platform, as evidenced by our ability to raise
A$1.2 billion in debt and equity from Australian and global investors in the first two months
of this year, in an environment where all fund raising is challenging. This achievement is a
clear reflection of investors recognition of our proven value-add approach, said Mr Day.
The Group has been particularly active launching funds in both Australia and Europe/UK
during 2H08.

Valads Nordic Aktiv Fund 2, a follow on to the successful Nordic Aktiv Fund 1 raised A$150
million of equity and A$320 million of debt in early January 2008. V Plus, Valads open
ended platform for diversified value-add property investment, raised A$215 million in equity
in January 2008, bringing total equity in the fund to A$442 million. Valads UK Opportunity ASX ANNOUNCEMENT

3 Fund was launched in late January, raising A$340 million in debt and equity, with a mandate
to capitalise on counter-cyclical arbitrage opportunities in the UK market. VOF12 was
launched in February 2008, seeking to raise A$29.5 million from retail investors with the
offer fully underwritten by nabCapital c.A$30 million.

The VCS business contributed 28% of 1H08 EBITDA. The business is tracking ahead of
forecasts both in terms of coupon and profit share. The business is now advancing plans to
introduce third party equity to this business by the end of the calendar year which will free
up capacity, generate fee income and expand our product suite. Outlook

Our outlook is strong. We are confident in our ability to maintain and grow earnings based
on our diversified business platform of four key business lines across 13 countries.

Valad is well positioned to ride out current difficult market conditions and can react quickly
and opportunistically. We will continue to maintain prudent capital management and keep
gearing at the lower end of our target range, said Mr Day.

The Groups strategy over the next six months will involve: Consolidating and capitalising on our businesses in existing geographies Australia,
NZ, UK and Europe; Continuing to integrate our UK/European platform; Improving margins across the business; Focusing on high ROE opportunities; Utilising proven development and value adding skills; Leveraging investor bases across regions; and Realising strategic opportunities through our Kimco alliance.
For further information, please contact: Chairman Stephen Day Valad Property Group Tel:+61 2 8257 6606 Investor Relations Rebecca Thompson Valad Property Group Tel: +61 2 8257 6717 Mob: +61 416 079 329 Media Manager Anna Mitsios Valad Property Group Tel: +61 2 8257 6761
Mob: +61 407 955 481
About Valad Valad is a diversified, value adding property fund manager, investor, developer, and property
investment banker with an Asia Pacific and Pan European platform.
Valad has been providing domestic and international property investors with superior returns across
the full risk/return spectrum since 1995, currently has circa A$20 billion of Assets Under
Management, and is a Top 150 ASX Listed Company.
Valads revenue is well diversified by business line, as well as by property sector and by geography.
Valad's capital sources are also diversified, and include domestic and international pension funds,
wholesale investors, retail and high net worth investors, banks and financial partners. ASX ANNOUNCEMENT

4
Pursuing a global vision for its funds management business, Valad is building on its reputation for the
creation of innovative investment products across key property sectors, sourced by its talented team
of investment, property and finance professionals. Valads diverse array of managed funds range
from higher return opportunity funds to the lower risk core-style Valad Property Trust. Valad develops
sophisticated fund opportunities for domestic and international investors, providing the value-add
that underpins the Groups name and philosophy.
Valad will continue to seek opportunities to value add in existing and new markets to further grow
and diversify its earnings whilst meeting the aspirations of shareholders, investors and staff.
Our Vision
Valad strives to be recognised as a market leader in the regions within which the Group operates by
implementing a 'value-add' philosophy across each of its diversified business lines: property
ownership, development, funds management and capital services. www.valad.com.au Disclaimer
No information contained in this document should be construed as advice, a recommendation, an offer for the
sale of or a solicitation to hold, acquire, apply for, purchase or sell shares, financial products or other instruments
in the Valad Property Group (VPG) or any other entity. None of the information contained in this document
should be relied on or construed as financial product advice.
This information has been prepared without taking account of your objectives, financial situation or needs. Before
acting on this information, you should consider its appropriateness, having regard to your objectives, financial
situation and needs and seek appropriate independent advice.
VPG and its related entities do not make any representations or give any warranties that the information set out
in this document is or will remain accurate or complete at all times and they disclaim all liability for harm, loss,
costs, or damage which arises in connection with any use or reliance on the information.
The forecasts set out above are predictive in character. Whilst every effort has been taken to ensure that the
assumptions on which the forecasts are based are reasonable, the forecasts may be affected by incorrect
assumptions or by known or unknown risks and uncertainties. Actual outcomes may differ substantially from
those which are forecast to occur.
Past performance is not a reliable indicator of future performance.
US Disclaimer

This presentation is not an offer or invitation for subscription or purchase of or a recommendation of securities. It
contains general information only and does not take into account the investment objectives, financial situation
and particular needs of individual investors. Investors should obtain their own independent advice from a
qualified financial advisor having regard to their objectives, financial situation and needs. This presentation does
not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or to any U.S.
person.

No representation or warranty, express or implied, is made in relation to the accuracy or completeness of the
information and opinions expressed in the course of this presentation. To the maximum extent permitted by law,
each of Valad Property Group, all of its related bodies corporate and their representatives, officers, employees,
agents and advisors do not accept any responsibility or liability for any of the information or for any action taken
by you on the basis of the information or opinions expressed in the course of this presentation, including without
limitation any liability arising from negligence on the part of any person. No representation or warranty is given as
to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements
in relation to future matters contained in the information provided in this presentation. Such forecasts, prospects,
returns and statements are by their nature subject to significant uncertainties and contingencies many of which
are outside the control of Valad Property Group. You must make your own independent assessment of the
information and in respect of any action taken on the basis of the information..

Comments