2018 Half Year Results Presentation For the six months ended 31 - PowerPoint PPT Presentation

2018 Half Year Results Presentation For the six months ended 31 December 2017 20 February 2018 Growthpoint Properties Australia Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409 www.growthpoint.com.au

Agenda Executive Management Team 1. HY18 Highlights 2. Market Conditions Timothy Collyer Michael Green 3. Financial Management Managing Director Head of Property 4. Property Portfolio 5. Strategy and FY18 Objectives Aaron Hockly Dion Andrews Chief Operating Offjcer Chief Financial Offjcer Important information This presentation and its appendices (“Presentation”) is dated 20 February 2018 and has been prepared by Growthpoint Properties Australia Limited ACN 124 093 901 (both in its capacity as responsible entity of Growthpoint Properties Australia Trust ARSN 120 121 002 and in its own capacity). Units in Growthpoint Properties Australia Trust are stapled to shares in Growthpoint Properties Australia Limited and, together form Growthpoint Properties Australia (“Growthpoint”). By receiving this Presentation, you are agreeing to the restrictions and limitations outlined on slide 39. Refer to slide 39 for other important information. 2 Growthpoint Properties Australia Half Year Results Presentation for the six months ended 31 December 2017 | 20 February 2018

HY18 Highlights and Market Conditions 1 Charles Street, Parramatta, NSW

Highlights for HY18 Securityholder returns Property • 12.5 cents in FFO per security • $3.3 billion property portfolio • Like-for-like valuation uplift of $124.6 million, or • 11.0 cents in distributions per security 4% over HY18 • 21.3% CY17 return on equity (CY17: 12.7%) • Cap rate compression of 17 bps to 6.36% • 17.0% 1 average Total Securityholder Return • 42,741 sqm of leasing completed 3 over past 5 years Significant Transactions Growth • Acquisitions: $114.1 million • Potential development of new 20,000 sqm complex at Richmond • Divestments: $90.8 million • Sell assets with underlying residential value • Equity raised: $52.3 million 2 • Continue to explore direct and listed property opportunities Capital Management Sustainability • Lowered gearing to 35.8% 4 • Maintained average offjce portfolio NABERS energy rating at 4.5 stars • Net tangible assets increased 6.9% to $3.08 per security • Improved gender diversity (48% of employees female) 1. Source: UBS Investment Research, Annual compound returns to 31 December. 2. Under the Distribution Reinvestment Plan for the distribution payable on 28 February 2018, prior to withholding tax. 3. Includes leasing completed post 31 December 2017. 4. Gearing calculation changed during the period from interest bearing liabilities divided by total assets to interest bearing liabilities less cash divided by total assets less cash. This change brings Growthpoint’s gearing calculation more closely in line with industry peers. 4 Growthpoint Properties Australia Half Year Results Presentation for the six months ended 31 December 2017 | 20 February 2018

Highlights for HY18 (continued) Guidance New Leases upgraded during period to: • Westpac: 7 Laffer Drive, Bedford Park, SA – 6,343 sqm offjce At least lease, 7 year term, 24.3cps annual rent increases of 3.00% FY18 FFO • Toll: 10 Butler 22.2cps Perth industrial IDR interest Woolworths, Boulevard, Adelaide Airport, SA – 8,461 sqm portfolio acquired Mulgrave FY18 DPS industrial lease, 4 divested year term, annual rent • Acquisition of portfolio • 18.2% interest in increases of 3.25% 1 of four modern Industria REIT (ASX: • Property sold for industrial properties IDR) purchased for • Direct Couriers: $90.8 million settled October 2017 $68.1 million in July 101-111 South Centre • 38% premium to 2017 • Price $46.0 million at Road, Melbourne book value 8.1% yield • 7.2% DPS yield Airport, Vic – • 5.2% yield on sale forecast FY18 14,082 sqm industrial price, record for a lease, 10 year term, • ASX trading price well Woolworths facility annual rent increases to above acquisition price • Settled in December the greater of CPI and 2017 3.50% 1. Documents in process of being executed. 5 Growthpoint Properties Australia Half Year Results Presentation for the six months ended 31 December 2017 | 20 February 2018

Domestic economy and property market remain supportive Unemployment (%) NAB Business Survey (net balance) Population growth (%) 2.3 30 6.4 20 1.7 6.2 1.6 1.6 1.6 10 6.0 Forecast 0 5.8 5.6 -10 5.4 -20 5.2 -30 NSW VIC QLD ACT Australia Business Co nfidence Business Conditions 5.0 -40 Total Population (m) Sep 07 Sep 10 Sep 13 Sep 16 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 7.9 6.3 4.9 0.4 24.6 * Dotted lines are long -run averages since Sep 98 Source: Australian Bureau of Statistics (ABS), NAB Group Economics Source: NAB Group Economics Source: ABS, 30 June 2017 National office vacancy and net absorption Australian online retail sales and national industrial annual gross take-up Australian online retail sales ($bn) LHS 30 3,000,000 200,000 12.0 National industrial annual gross take-up (sqm) RHS 150,000 25 2,750,000 10 Year 10.0 Ave. 100,000 2,500,000 20 8.0 50,000 15 2,225,000 0 6.0 -50,000 10 2,000,000 4.0 -100,000 5 1,750,000 2.0 -150,000 Net absorption (sqm) LHS Total vacancy (%) RHS 0 1,500,000 -200,000 0.0 2013 2014 2015 2016 2017 Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 Jan 17 Jul 17 Jan 18 Source: Property Council of Australia (PCA) Source: NAB Group Economics, JLL Research 6 Growthpoint Properties Australia Half Year Results Presentation for the six months ended 31 December 2017 | 20 February 2018

Financial Management 2 and 10 Hugh Edwards Drive, Perth Airport, WA

HY18 Highlights Statutory profit Funds From Operations Distributions Payout ratio to FFO $207.3m 12.5cps 11.0cps 88.3% 83% increase on prior corresponding period NTA per share Gearing reduced to Average cost of debt increased 6.9% to 35.8% 1 4.4% $3.08 From 38.5% 1 at 31 December 2017 from $2.88 at 30 June 2017 at 30 June 2017 1. Gearing calculation changed during the period from interest bearing liabilities divided by total assets to interest bearing liabilities less cash divided by total assets less cash. This change brings Growthpoint’s gearing calculation more closely in line with industry peers. 8 Growthpoint Properties Australia Half Year Results Presentation for the six months ended 31 December 2017 | 20 February 2018

Areas of interest: Gearing further reduced over HY18 • Proceeds from above- Key items influencing gearing (%) book value sale of 522-550 Wellington Road, Mulgrave used to pay down debt at 41% 40.7% 1 end of CY17 270bps • Book value of property 40% portfolio increased reduction since +2.2% $124.6 million, or 4% on a 30 June 2017 39% 38.5% 1 like-for-like basis over HY18 38% • Gearing conservatively placed at bottom end of +0.7% 37% target gearing range (35%- -1.5% -2.0% +1.3% 45%) offering balance sheet -0.1% 36% 35.8% 1 fmexibility -1.2% 35% -2.1% 34% 33% Pay down Purchase Perth Sell 522-550 31 Dec 16 30 Jun 17 excess cash Sell Nundah Purchase IDR stake industrial Sell 10 Gassman Distribution paid Wellington Road Revaluations 31 Dec 17 1. Gearing calculation changed during the period from interest bearing liabilities divided by total assets to interest bearing liabilities less cash divided by total assets less cash. This change brings Growthpoint’s gearing calculation more closely in line with industry peers. 9 Growthpoint Properties Australia Half Year Results Presentation for the six months ended 31 December 2017 | 20 February 2018

Areas of interest: Movements in NTA Uplift to NTA driven by: Movements in NTA per stapled security ($) • 17 bps fall in weighted average capitalisation rate 3.10 to 6.36% $3.08 +$0.04 +$0.01 3.05 +$0.16 • Sale of assets at signifjcant -$0.01 premium to book value 3.00 • Improvement in market 2.95 rents - particularly in Sydney and Melbourne 2.90 $2.88 6.9% • Excellent leasing outcomes increase since 2.85 30 June 2017 2.80 2.75 $2.72 2.70 2.65 Property Profit on Financial Equity raising 31 December 30 June 31 December revaluations property sale instruments & retained 2016 2017 2017 revaluations earnings (DRP) 10 Growthpoint Properties Australia Half Year Results Presentation for the six months ended 31 December 2017 | 20 February 2018

Areas of interest: Upcoming debt maturities • $200 million of bank debt Debt maturity profile ($m) maturing in FY19, and $315 million maturing in FY20 Bank debt Institutional term loan USPP Undrawn bank debt • Considering further debt capital markets issuance 400 • Well diversifjed debt funding profjle 300 • Aim to take advantage 81 of favourable pricing environment, while also 200 250 234 extending weighted average 200 200 tenor 150 150 100 130 78 0 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 11 Growthpoint Properties Australia Half Year Results Presentation for the six months ended 31 December 2017 | 20 February 2018