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Australian Securities Exchange Company Announcements Platform Centuria Property Funds No. 2 Limited For personal use only CENTURIA INDUSTRIAL REIT 2018 Goldman Sachs Small and Mid-Cap Conference Presentation Sydney 18 April 2018, Centuria

SLIDE 1 Australian Securities Exchange – Company Announcements Platform

Centuria Property Funds No. 2 Limited CENTURIA INDUSTRIAL REIT

2018 Goldman Sachs Small and Mid-Cap Conference Presentation

Sydney 18 April 2018, Centuria Property Funds No. 2 Limited (CPF2L) as Responsible Entity of Centuria Industrial REIT (ASX:CIP) provides a presentation that will be used at the Goldman Sachs ninth annual Small and Mid-Cap Conference being held today in Sydney. – Ends – For more information or to arrange an interview, please contact: Ross Lees Trust Manager – CIP Centuria Property Funds No. 2 Limited Phone: 02 8923 8923 Email: ross.lees@centuria.com.au Tim Mitchell Group Head of Investor Relations Centuria Capital Group Phone: 02 8923 8923 Email: tim.mitchell@centuria.com.au About Centuria Property Funds No. 2 Limited Centuria Property Funds No. 2 Limited (CPF2L), a wholly-owned subsidiary of Centuria Capital Group (CNI), is the Responsible Entity for the ASX listed Centuria Industrial REIT (CIP). CIP is Australia’s largest ASX-listed income focused industrial investment vehicle and is included in the S&P ASX300 index. CIP owns a portfolio of 39 high quality industrial assets with a value exceeding $1 billion, the properties are located in key metropolitan locations throughout Australia. CPF2L, combined with Centuria Property Funds Limited (CPFL), the Responsible Entity for the ASX listed Centuria Metropolitan REIT (CMA), has $3.7 billion of funds under management in 17 unlisted property funds, one open-ended diversified property fund and two listed REITs. CNI is an ASX-listed specialist investment manager with $4.6 billion in funds under management. www.centuria.com.au

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SLIDE 2 PAGE 1 CENTURIA INDUSTRIAL REIT (ASX:CIP) I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 1 ASHBURN ROAD, BUNDAMBA, QLD

Centuria Industrial REIT

Goldman Sachs Small and Mid-Cap Conference

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SLIDE 3

1H18 Results

CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

1

Overview

2

Portfolio Overview

3

Summary 1 ASHBURN ROAD, BUNDAMBA, QLD

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Section 1

CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

Overview

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SLIDE 5 PAGE 4 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

Centuria Capital

ASX-listed specialist investment manager

1. Includes 31 Kendall Street, Williams Landing, VIC, as if complete
2. Includes post 31 December 2017 acquisitions
3. Above chart at 31 December 2017

Property fund management

Listed Property $2.0b 1 Unlisted Property $1.7b 2

$0.9b

Assets Under Management

Investment Bonds

17 fixed term funds

$3.7

Assets Under Management 1,2 Assets Under Management Industrial REIT (CIP) $1

Assets Under Management 1 Office REIT (CMA) $0.9b Centuria Diversified Property Funds

$4.6b

Assets Under Management 1,2

Centuria Capital Group

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SLIDE 6 PAGE 5 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

CIP , Australia’s largest ASX listed income focused industrial REIT

Key Metrics at 31 December 2017

40.6%

Gearing 3

95.9%

Portfolio

ccupancy 4

4.9yrs

Portfolio WALE 4

High quality assets

$1.0b

Portfolio value

19.4cpu

FY18 distribution guidance

$608m

Market capitalisation 1

7 .9%

FY18 forecast distribution yield 1

1. Based on CIP closing price of $2.45 on 31 March 2018
2. Source: Moelis & Company
3. Gearing is defined as total borrowings minus cash / total assets minus cash and goodwill
4. By income

12 month total unit holder return

utperforming S&P/ASX300

A-REIT Index at -0.1% 2

6.7

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SLIDE 7 PAGE 6 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

CIP has a simple strategy – to deliver income and capital growth to investors from a portfolio of high quality Australian industrial assets; by – focusing on ‘fit for purpose’ assets that are relevant to our quality customer base – anticipating and meeting the needs of our customers to ensure high retention and occupancy – Re-positioning assets to maximise value to unit holders 24-32 Stanley Drive Somerton, VIC

Strategy

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SLIDE 8 PAGE 7 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

1. Source: ASX disclosures at 31 December 2017

– Only ASX listed REIT with 100% exposure to Australian industrial real estate – Large scale, geographically diversified industrial portfolio – Included in S&P/ASX 300 Index – Portfolio has grown significantly over the past five years

Australia’s largest ASX listed income focused industrial REIT

$2.0 bn 25 50 75 100% 1.0 0.5 1.5

Value of owned Industrial Portfolio (ex Business Parks) 1

0.0 CIP Peer 8 Represents Australian Industrial Property (ex Business Parks) as a % of assets Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 Peer 2 Peer 1 $0.3 bn $0.6 bn $0.8 bn $1.0 bn $1.1 bn $1.3 bn $1.4 bn $1.5 bn $1.8 bn NA $1,200 m 1,000 400 200 800 600

CIP Portfolio Value

Jun 14 Jun 15 Jun 16 Jun 17 Dec 17 CAGR 34%

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SLIDE 9 PAGE 8 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 Note: Investment sales greater than and equal to $5 million included; yields reflect reversionary yields Source: RCA / Colliers Edge Note: Yields reflect average prime industrial assets, as at December 2017 Source: Colliers International

Competition for assets drives transaction volumes

$9 AUD Billions 6 7 8 4 5 2 1 3 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 10% 9.0 8.5 9.5 8.0 7.5 6.0 7.0 6.5 Average Cap Rate Transaction Volume

Transaction Volumes and Average Cap Rate

NSW VIC QLD WA SA ACT Other Average Prime Yield Average Secondary Yield 6 7 8 4 5 2 1 3 Yield (%)

Average Industrial Yield by City (2017)

Houston Melbourne Shanghai Los Angeles Sydney Tokyo Chicago Frankfurt Munich Vancouver London Hong Kong Singapore Total average 5.1%

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SLIDE 10 PAGE 9 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 6.0 5.0 2.0 1.0 3.0 4.0

Australian GDP and CPI

0.0 CPI GDP Dec-2006 Mar-2007 Jun-2007 Sep-2007 Dec-2007 Mar-2008 Jun-2008 Sep-2008 Dec-2008 Mar-2009 Jun-2009 Sep-2009 Dec-2009 Mar-2010 Jun-2010 Sep-2010 Dec-2010 Mar-2011 Jun-2011 Sep-2011 Dec-2011 Mar-2012 Jun-2012 Sep-2012 Dec-2012 Mar-2013 Jun-2013 Sep-2013 Dec-2013 Mar-2014 Jun-2014 Sep-2014 Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016 Mar-2017 Jun-2017 Sep-2017 Dec-2017

Underlying conditions remain positive for industrial occupiers

65 60 55 40 45 35 50

Australian Manufacturing Purchasing Managers Index (3 months average)

May 09 May 10 May 11 May 12 May 13 May 14 May 15 May 16 May 17

Projected Average Population Growth (2018-2022)

3.0 % 0.3% 0.0%

0.4%

0.5% 0.6% 0.6% 0.6% 0.8% 0.8% 0.9% 1.0% 1.0% 1.0% 1.2% 1.3% 1.3% 1.3% 1.6% 2.7% Major Advanced Germany Japan France People’s Republic of China United States United Kingdom Hong Kong SAR Singapore Mexico Asia & Pacific Emerging & developing Canada World Indonesia Emerging market India Australia Nigeria 2.0 0.0 1.0

Source: ABS Source: RBA, Property Insights 2013/14 2014/15 2015/16 2016/17 eCommerce Share (%) Sales (AUD Millions)

Online Retail and eCommerce

Average monthly online Retail Sales Share of eCommerce Sales $1,000 $600 $400 $800 $200 38.5 39.5 37.5 35.5 35.0 36.0 37.0 38.0 39.0 36.5 Source: Source: ABS / Colliers Research Note: ‘eCommerce’ defined as ‘pure-online sales’ Source: IMF

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SLIDE 11 PAGE 10 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 1) Source: Knight Frank Research

Availability reducing across all key markets

Market supply 1

Available Space – Sydney

1,000 800 600 400 200 Apr 11 Aug 11 Dec 11 Apr 12 Aug 12 Dec 12 Apr 13 Aug 13 Dec 13 Apr 14 Aug 14 Dec 14 Apr 15 Aug 15 Dec 15 Apr 16 Aug 16 Dec 16 Apr 17 Aug 17 Dec 17 Prime Secondary 1,200 1,200 800 1,000 600 400 200

Available Space – Melbourne

Prime Secondary Apr 11 Aug 11 Dec 11 Apr 12 Aug 12 Dec 12 Apr 13 Aug 13 Dec 13 Apr 14 Aug 14 Dec 14 Apr 15 Aug 15 Dec 15 Apr 16 Aug 16 Dec 16 Apr 17 Aug 17 Dec 17 800 600 400 200

Available Space – Brisbane

Prime Secondary Apr 11 Aug 11 Dec 11 Apr 12 Aug 12 Dec 12 Apr 13 Aug 13 Dec 13 Apr 14 Aug 14 Dec 14 Apr 15 Aug 15 Dec 15 Apr 16 Aug 16 Dec 16 Apr 17 Aug 17 Dec 17

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SLIDE 12 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

Section 3

Portfolio

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SLIDE 13 PAGE 12 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

High quality assets accomodating quality tenants

Portfolio composition

1. Includes acquisition of Lot 14 Sudlow Road, Bibra Lake, WA and 207-219 Browns Road, Noble Park, VIC, exchanged on 29 June 2017

Portfolio Snapshot 1H18 FY17 1 1H17 Number of assets 39 38 37 Book value $m 1,005.2 961.2 911.9 WACR % 7.02 7.33 7.42 GLA sqm 766,539 757,944 693,620 Average asset size sqm 19,655 19,945 18,746 Occupancy by income % 95.9 92.1 96.1 WALE by income Years 4.9 4.4 4.4 AWH Woolworths Green's General Foods Visy Board The Reject Shop API Orora VIP Petfoods K & S Freighters Bradnam's Windows and Doors 1 2 3 4 5 6 7 8 9 10 Tenant % of total income Rank 8.1% 8.1% 6.4% 5.3% 4.3% 4.2% 3.9% 3.5% 3.4% 3.4%

18%

QLD SA WA NT NSW ACT VIC

39% 27% 2% 1% 1 3%

Geographic Diversification

(by value)

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SLIDE 14 PAGE 13 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

1. FY19 will further reduce to 10.2% following settlement of 39-45 Wedgewood Road, Hallam, VIC

– Record leasing in 1H FY18, 20.1% of portfolio leased over a six month period – 100% tenant retention in 1H FY18 driven by leasing transactions with major occupiers – Executed one of Australia’s largest leases, 83,781sqm to AWH – High occupancy of 95.9%, portfolio WALE of 4.9 years – Significant reduction in portfolio vacancy and near term forward lease expiry

Operational highlights

Active management generates record leasing volume

Weighted Average Lease Expiry (by income)

70 (%) 60 50 40 30 20 10 1H18 FY17 FY18 3.5% 5.0% FY20 14.2% 24.8% 47.3% FY19 1 11.2% 11.8% FY21 3.2% 4.9% Vacant 7.9% 4.1% FY22+ 62.1% WALE 4.9 years Occupancy 95.9% 47.3%

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SLIDE 15 PAGE 14 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

Transactional highlights

Acquisitions Divestment

207-219 Browns Road Noble Park, VIC – $37.0 million acquisition, 7.0% initial yield 2 – 8.8 year WALE 3 – Adjoins existing CIP four hectare asset at 500 Princes Highway, Noble Park Lot 14 Sudlow Road Bibra Lake, WA – $28.0 million acquisition, 8.8% initial yield 2 – 7.8 year WALE 3 – Re-leased 100% of the property ahead of settlement – Adjoins existing CIP asset at 310 Spearwood Avenue, Bibra Lake 92 Robinson Avenue Belmont, WA – $11.2 million acquisition, 11.0% initial yield 2 – 100% leased to Toll Transport until 2021 – High quality, fit-for-purpose asset in infill location situated between Perth CBD and Perth airport 39-45 Wedgewood Drive Hallam, VIC – $10.0 million divestment, 7.5% premium to book value – Settlement to occur in June 2018, ahead of FY19 lease expiry

Over $130m

1 transacted to improve portfolio quality

1. Includes CIP’s 7.7% interest in Propertylink Group and 43-45 Mica Street, Carole Park, QLD
2. Acquisition prices and initial yields before transaction costs
3. WALE by area

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SLIDE 16 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

Section 5

Summary

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SLIDE 17 PAGE 16 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

– CIP is Australia’s largest ASX focused income industrial REIT with 100% exposure to industrial assets – Managed by Centuria Capital (ASX:CNI), a specialist fund manager with $121m

1 co-investment

– CIP’s portfolio is nationally diversified with highest weightings towards NSW and VIC markets – The portfolio has undergone significant active management > Near term lease expiries have been significantly reduced over the last 12 months, increasing WALE to 4.9 years > Continued execution of complementary acquisition and disposal initiatives

Summary

– Australia’s industrial market continues to experience strong demand from domestic and international investors – Tenant demand improving > Adaptation towards emerging technological trends > Uplift from traditional manufacturing sectors – Forecast FY18 distributable earnings of 19.5-20.0 cents per unit – Forecast FY18 distribution of 19.4 cents per unit

1. Based on CIP closing price of $2.45 as at 31 March 2018, and CNI disclosure of 21 Nov 2017

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SLIDE 18 PAGE 17 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

CIP , Australia’s largest ASX listed income focused industrial REIT

Key Metrics at 31 December 2017

40.6%

Gearing 3

95.9%

Portfolio

ccupancy 4

4.9yrs

Portfolio WALE 4

High quality assets

$1.0b

Portfolio value

19.4cpu

FY18 distribution guidance

$608m

Market capitalisation 1

7 .9%

FY18 forecast distribution yield 1

1. Based on CIP closing price of $2.45 on 31 March 2018
2. Source: Moelis & Company
3. Gearing is defined as total borrowings minus cash / total assets minus cash and goodwill
4. By income

12 month total unit holder return

utperforming S&P/ASX300

A-REIT Index at -0.1% 2

6.7

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SLIDE 19 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 PAGE 18 CA-CIP-17/04/18–00777 This presentation has been prepared by Centuria Property Funds No. 2 Limited (ABN 38 133 363 185, AFSL 340 304) (‘CPF2L’) as responsible entity of the Centuria Industrial REIT (ARSN 099 680 252 (‘CIP’ or the ‘Trust’). All information and statistics in this presentation are current as at 18 April 2018 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive or to contain all of the information that may be relevant, or which a prospective investor may require in evaluations for a possible investment in CIP . It should be read in conjunction with CIP’s periodic and continuous disclosure announcements which are available at www.centuria.com.au. The recipient acknowledges that circumstances may change and that this presentation may become outdated as a result. This presentation and the information in it are subject to change without notice and CPF2L is not obliged to update this presentation. This presentation is provided for general information purposes only. It is not a product disclosure statement, pathfinder document or any other disclosure document for the purposes of the Corporations Act and has not been, and is not required to be, lodged with the Australian Securities & Investments Commission. It should not be relied upon by the recipient in considering the merits of CIP or the acquisition of securities in CIP . Nothing in this presentation constitutes investment, legal, tax, accounting or other advice and it is not to be relied upon in substitution for the recipient’s own exercise of independent judgment with regard to the operations, financial condition and prospects of CIP . The information contained in this presentation does not constitute financial product advice. Before making an investment decision, the recipient should consider its own financial situation, objectives and needs, and conduct its

wn independent investigation and assessment of the contents of this presentation, including obtaining investment, legal, tax, accounting and such other advice as it considers necessary or appropriate. This presentation has been

prepared without taking account of any person’s individual investment objectives, financial situation or particular needs. It is not an invitation or offer to buy or sell, or a solicitation to invest in or refrain from investing in, securities in CIP

r any other investment product.

The information in this presentation has been obtained from and based on sources believed by CPF2L to be reliable. To the maximum extent permitted by law, CPF2L and its related bodies corporate make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this presentation. To the maximum extent permitted by law, CPF2L does not accept any liability (including, without limitation, any liability arising from fault or negligence) for any loss whatsoever arising from the use of this presentation or its contents or

therwise arising in connection with it.

This presentation contains information as to the past performance of CIP . Such information is given for illustrative purposes only, and is not – and should not be relied upon – as an indication of the future performance of CIP . This presentation may contain forward-looking statements, guidance, forecasts, estimates , prospects, projections or statements in relation to future matters (‘Forward Statements’). Forward Statements can generally be identified by the use of forward looking words such as “anticipate”, “estimates”, “will”, “should”, “could”, “may”, “expects”, “plans”, “forecast”, “target” or similar expressions. Forward Statements including indications, guidance or outlook on future revenues, distributions or financial position and performance or return or growth in underlying investments are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. No independent third party has reviewed the reasonableness of any such statements or assumptions. No member of CPF2L represents or warrants that such Forward Statements will be achieved or will prove to be correct or gives any warranty, express or implied, as to the accuracy, completeness, likelihood of achievement or reasonableness of any Forward Statement contained in this presentation. Except as required by law or regulation, CPF2L assumes no

bligation to release updates or revisions to Forward Statements to reflect any changes. The reader should note that this presentation may also contain pro forma financial information.

Distributable earnings is a financial measure which is not prescribed by Australian Accounting Standards (‘AAS’) and represents the profit under AAS adjusted for specific non-cash and significant items. The Directors consider that distributable earnings reflect the core earnings of the Trust. All dollar values are in Australian dollars ($ or A$) unless stated otherwise.

Disclaimer

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SLIDE 20 CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018

Thank you

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