ABACUS GROUP — AGM Information 2017

Nov 13, 2017

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ASX ANNOUNCEMENT

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2017 AGM - Chairman’s Address

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Ladies and gentlemen, good morning and welcome to our 2017 Annual General Meeting. My name is John Thame and I will chair today’s meeting. As it is past the appointed time of 10 am, and the necessary quorum is present, I declare the meeting open.

Could I request that you now take a moment to ensure that your mobile phones are switched to silent for the duration of this meeting?

This meeting comprises the annual general meetings of the members of:

• Abacus Group Holdings Limited;

• Abacus Group Projects Limited; and

• Abacus Storage Operations Limited

in conjunction with the meetings of the members of:

• Abacus Trust;

• Abacus Income Trust; and

• Abacus Storage Property Trust.

All together ‘Abacus Property Group’

I would like to introduce the other directors who are here today:

• Frank Wolf – our managing director

• Bill Bartlett;

• Malcolm Irving;

• Jingmin Qian;

• Myra Salkinder; and

• Peter Spira

I would like to take a moment to say a few words to my fellow Director Mr Malcolm Irving. As part of our Board renewal plans, Malcolm has decided to not stand for re-election at this year’s AGM. Malcolm retires from the Board today following 15 years of impeccable service. Malcolm has been the Chairman of the Board’s Audit & Risk and Compliance committees for many years. I and my fellow board members would like to extend our gratitude and thanks to Malcolm for his invaluable contribution and leadership during his service over this time.

At the conclusion of this year’s AGM, the six member Abacus Board will now include 2 or 33% female members and further enhances the Group’s diversity practices.

Our order of business today will begin with a presentation by our Managing Director, Dr Frank Wolf. Then we will move through the business of the meeting. I will take questions relating to the resolutions as each is put to the meeting. After the conclusion of the formal business, we will open the meeting to questions.

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I encourage you to take the opportunity to ask questions about the management and performance of the Group over the last 12 months.

We have recently released our 2017 Annual Financial Report and our 2017 Securityholder Review. You may also have seen our results presentation in August. These provide a comprehensive summary and analysis of our performance over the 2017 financial year. I commend to you our operating and financial review that forms part of the directors’ report in our annual financial report. This review provides a detailed overview of our businesses. If you want copies of these documents, they are available here.

Frank will go into more detail about our results for the year and provide an update during his presentation but I would like to touch briefly on our results from the last year.

Abacus Property Group delivered a record result for the 2017 financial year. A result that highlighted impressive returns across the Abacus platform as each business unit contributed to the financial result. The record profits validated our diversified core plus strategy that we have closely followed over the years. This strategy provides resilience to our earnings.

At our AGM last year, the Group articulated our investment strategy for the foreseeable future. We indicated we would look to allocate our investment capital on strategies that would enhance our recurring earnings, specifically through acquisitions across the self-storage and office sectors. Acquisition funding would be through the expected realisations of our residential developments over the coming years.

This strategy would support our new distribution strategy we committed to last year to grow distributions to securityholders by 2-3% per annum. Pleasingly our strong results underwrote our growth in distributions per security of 3% to 17.5 cents to securityholders in FY17 and we are pleased to target another 3% growth in distributions to 18.0 cents in FY18.

We are very proud of the commitment and improvements to our sustainability protocol and strategies throughout the year. Abacus is pleased to deliver on our commitment to our sustainability reporting journey by producing our inaugural Sustainability report that was prepared in accordance with the Global Reporting Initiative’s G4 reporting guidelines ‘core’ requirements. Our GRI G4 core sustainability report for FY17 illustrates the environmental footprint from the Group’s operations, and management and key performance indicators over time, to help us manage and reduce our consumption of natural resources, all under a global accepted framework for sustainability reporting. We encourage you to read this report.

We will continue to improve on our reporting requirements to the community and the sustainability of our property portfolio.

To conclude, we are very proud of our record results for this financial year. While the financial results are strong we are also proud of delivering so successfully via our diversified core plus strategy. This continues to highlight our ability to grow returns across our business as we move through the differing cycles of each business sector.

Frank is going to spend more time discussing our strategic focus in FY18, but we are committed to reallocating balance sheet capital into assets that grow our recurring earnings and ensure the Group is well placed to grow distributions to securityholders in the future.

I would specifically like to mention that we have a very strong and experienced team at Abacus. They continue to do an excellent job and we have every confidence that they will continue to deliver long term securityholder returns. My board colleagues and I thank them for their commitment and engagement during the past year.

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Finally, we and the other members of our Board would like to thank you, our investors, for your continued support.

14 November 2017

Investor enquiries Neil Summerfield Head of Investor Relations (+61) 2 9253 8600 www.abacusproperty.com.au

About Abacus

Abacus Property Group is a diversified property group that specialises in investing in core plus property opportunities across Australia's commercial property markets. Abacus was established in 1996 and listed on the ASX in November 2002. Abacus has achieved a successful track record of acquiring property based assets and actively managing those assets to enhance income and capital growth. Abacus has a market capitalisation of over $2.3bn.

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