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CENTURIA CAPITAL GROUP Capital/Financing Update 2021

Oct 12, 2021

64677_rns_2021-10-12_aa9e4ffe-f7e8-417b-9de7-49416a8e3ce1.pdf

Capital/Financing Update

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UNLISTED:
BLOOMFIELD MEDICAL
CENTRE, ORANGE, NSW
LISTED: 110 NORTHCORP
BOULEVARD,
BROADMEADOWS, VIC
UNLISTED:
CENTURIA GOVERNMENT ​INCOME
PROPERTY FUND, FOOTSCRAY, VIC
LISTED: 101 MORAY STREET,
LISTED: 56-88 LISBON STREET, SOUTH MELBOURNE, VIC
FAIRFIELD, NSW
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Centuria Capital Group

MARKET UPDATE ASX: CNI | 13 OCT 2021

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A S X : C N I
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1

C E N T U R I A C A P I T A L G R O U P

A leading Australasian real estate funds manager Included in the S&P/ASX200 Index

bn $18.1

GROUP AUM

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REAL ESTATE AUM[1] $17.2bn

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$6.1bn LISTED REAL ESTATE

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$11.1bn $0.9bn INVESTMENT BONDS UNLISTED REAL ESTATE

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$3.5bn $2.3bn $0.3bn CENTURIA CENTURIA ASSET PLUS INDUSTRIAL REIT OFFICE REIT LIMITED ASX: CIP ASX: COF NZX: APL

CENTURIA LIFE $7.8bn $1.5bn $1.8bn INVESTMENT BONDSCENTURIA SINGLE MULTI ASSET MULTI ASSET ASSET CLOSED ENDED OPEN ENDED GUARDIAN FRIENDLY FUNDS FUNDS FUNDS SOCIETY

Note: AUM as at 30 September 2021. All figures above are in Australian dollars (currency exchange ratio of AU$1.000:NZ$1.0486). Numbers presented may not add up precisely to the totals provided due to rounding 1. Includes commenced development projects valued on an as if completed basis, cash and other assets, assets exchanged but not settled. Does not include assets exchanged post 30 September 2021

2

C E N T U R I A C A P I T A L G R O U P

A S X : C N I

Strong momentum across Centuria’s Australasian platform

  • Group real estate AUM[1] expands to $18.1bn underpinned by $6.1bn listed real estate AUM and $11.1bn unlisted real estate AUM

  • $1.6bn total FY22 year to date real estate acquisition activity[1 ] (includes $0.9bn of acquisitions[2] undertaken since FY21 results announced in August)

  • Centuria Listed Real Estate: AUM grows to $6.1bn following major portfolio acquisitions by COF and CIP

  • Strong contribution from single asset funds including settlement of $224m Centuria Govt. Income Fund No.1 and launch of $63m Centuria Govt. Income Fund No.2

  • Centuria Healthcare: unlisted healthcare AUM of $1.1bn, CHPF open ended fund increases to $301m[3] underpinned by seven asset acquisitions for $117m[3]

  • Primewest: $372m of unlisted acquisitions, introducing new unlisted funds for wholesale investors, identified pipeline for Daily Needs Retail mandate

  • Centuria NZ: AUM of $2.3bn, strong contribution from the $514m unlisted multi-asset Centuria Industrial Fund (NZ)

  • Centuria Bass Credit: Successful launch of open-ended, Centuria Bass Credit Fund to Centuria and Primewest wholesale investors

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LISTED: 29 PENELOPE CRESCENT, ARNDELL PARK, NSW
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  • 1.Note: AUM as at 30 September 2021. All figures above are in Australian dollars (currency exchange ratio of AU$1.000:NZ$1.0486). Numbers presented may not add up precisely to the totals provided due to rounding. Includes commenced development projects valued on an as if completed basis, cash and other assets, assets exchanged but not settled. Does not include assets exchanged post 30 September 2021

  • Includes acquisitions exchanged, to be settled 3. Includes development projects on an accounting carrying value basis

C E N T U R I A C A P I T A L G R O U P A S X : C N I 3

Executing $1.6bn of acquisitions

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SELECT PROPERTY ACQUISITIONS

$1.6bn Total FY22 year to date real estate acquisition activity[1]

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$456m $273m $167m $63m
LISTED (CIP): LISTED (COF): UNLISTED OPEN-ENDED FUND (CHPF): UNLISTED SINGLE ASSET FUND:
EXCHANGED OR SETTLED EXCHANGED OR SETTLED EXCHANGED OR SETTLED EXCHANGED 21-25 NILE STREET,
12 INDUSTRIAL PROPERTIES 2 OFFICE PROPERTIES 7 HEALTHCARE PROPERTIES PORT ADELAIDE, SA
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Strong execution success across Centuria’s major real estate asset classes

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$735m
$893m
Acquisitions exchanged
New Acquisitions
at FY21 results that have
post FY21 results [1]
since settled
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$224m $272m $34m $54m
UNLISTED SINGLE ASSET FUND: INSTITUTIONAL SINGLE ASSET FUND: INSTITUTIONAL MANDATE: UNLISTED MULTI-ASSET FUND:
SETTLED 1 McNAB AVENUE, SETTLED 140 ST GEORGES TERRACE, SETTLED 20 ABERNETHY ROAD, SETTLED MOORA ALMOND ORCHARD
FOOTSCRAY, VIC PERTH, WA BYFORD, WA RIVERINA, NSW
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$196m FY22 year to date divestments

C E N T U R I A C A P I T A L G R O U P A S X : C N I 4

  1. Including assets exchanged but not settled as at 30 September 2021

Listed property: AUM grows to over $6bn

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ASX:
COF
Australia’s largest
CENTURIA pure-play Office REIT
OFFICE REIT
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ASX:
CIP
Australia’s largest pure-
CENTURIA play Industrial REIT
INDUSTRIAL REIT
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A quality portfolio of de-centralised, highly connected and affordable office space

A quality portfolio of fit for purpose industrial assets, situated in infill locations with close key infrastructure

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INCLUDED IN THE
AUM [1,2] 23 ACQUISITIONSFY22 YTD [1,2] INCLUDED IN THE FTSE EPRA
S&P/ASX Nareit Global
HIGH QUALITY
$2.3bn ASSETS $273m 300 Index Developed
Index
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INCLUDED IN THE
AUM [2] 75 ACQUISITIONSFY22 YTD [2] INCLUDED IN THE FTSE EPRA
S&P/ASX Nareit Global
HIGH QUALITY
$3.5bn ASSETS $456m 200 Index Developed
Index
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63%

PORTFOLIO INCOME FROM GOVERNMENT, 80% ASX LISTED & MULTINATIONAL TENANTS

PORTFOLIO INCOME FROM TELCO, CONSUMER STAPLES & PHARMACEUTICALS[3]

  1. Assuming the acquisition of a 50% interest in 203 Pacific Highway, St Leonards, NSW proceeds

  2. Includes assets exchanged but not settled at 30 June 2021

  3. Includes associates of Centuria Capital Group

  4. Includes exchanged acquisitions to be settled

  5. Based on the respective APL close price on 30 September 2021

  6. As at 30 June 2021

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NZX: Artist Impression
APL
Targeting long term
ASSET total returns
PLUS
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A yield plus growth investment strategy through select New Zealand real estate

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CNI MUNROE LANE DEVELOPMENT EARLY
AUM [4,5] CO-INVESTMENT [6]
NZ$147m CY23
$0.3bn 19.99% EST VALUE ON MUNROE LANE
COMPLETION TARGET COMPLETION
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71% PORTFOLIO INCOME FROM GOVERNMENT, NZX LISTED & MULTINATIONAL TENNANTS[3]

  1. Includes commenced development projects valued on an as if completed basis

C E N T U R I A C A P I T A L G R O U P A S X : C N I 5

Unlisted property: Servicing a distribution network of over 12,000 investors

SELECT UNLISTED REAL ESTATE FUND INITIATVES

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$301m $63m $194m
CENTURIA HEALTHCARE CENTURIA GOVERNMENT CENTURIA DIVERSIFIED
PROPERTY FUND INCOME PROPERTY FUND NO.2 PROPERTY FUND
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$71m $54m
NORTHGATE PRIMEWEST AGRICULTURE
GERALDTON TRUST [2] TRUST NO.2
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  • Open-ended fund • Launched a single asset • Recently acquired two expanded to $301m[1] closed-end fund industrial assets for $21m[1]

  • Recently acquired $35m target equity raise to 7 properties for $117m[1] commence

  • Divested one asset for $50m, reflecting a 43% premium to prior book value

  • Equity raise targeting $62m • 100% leased to SA completed government, 11.1 year WALE as at Dec-2021

  • 98.4% portfolio occupancy, 3.7 year WALE as at Sep-21

  • 100% portfolio occupancy, 11.4 year WALE as at Jun-2021

  • First close of PWAT2 multi-asset fund

  • Launched single asset closed-end wholesale fund

  • $42m target equity raise to $54m Moora almond commence orchard, Riverina NSW seed asset

  • Dominant shopping centre in the area, 49% of income derived from Coles and Kmart

  • 524 hectares, 7,800 megalitres of water entitlements

  • 96.3% occupancy, 4.7 year WALE as at Nov-21

  • 12 year triple net lease to Lachlan River Almonds

  • Includes development projects on an accounting carrying value basis

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C E N T U R I A C A P I T A L G R O U P A S X : C N I

  1. Excluded from CNI’s AUM. Exchanged post 30 September 2021

Unlisted property: Servicing a distribution network of over 12,000 investors

INSTITUTIONAL INITIATIVES

CENTURIA BASS CREDIT

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Dangar Street, Wickham, Newcastle, NSW
$930m $604m $500m $272m
$555m $210m
DAILY NEEDS RETAIL OFFICE HEALTHCARE 140 ST GEORGES
TOTAL COMMITTED OPEN-ENDED FUNDS [1]
MANDATE MANDATE MANDATE TERRACE FUND
LOAN BOOK AUM
(GIC) (GIC) (AXA IM & GROSVENOR GROUP) (BLACKROCK)
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  • Part of Primewest merger

  • Part of Primewest merger

  • $300m mandate upscaled $604m mandate filled, to $930m scope to expand

  • $255m filled, five assets

  • Two prime grade assets: Exchange Tower and One William Street, Perth, WA

  • Focus on non-discretionary spending assets

  • Embedded potential for MAT growth and infill development

  • $92m filled, two assets

  • Assessing opportunities that meet investment criteria

  • Focused on prime healthcare assets across Australia

  • $272m Primewest, Blackrock JV now settled

  • Prime 30,000sqm commercial tower in Perth CBD

  • Successful launch of open-ended, Centuria Bass Credit Fund to Centuria and Primewest wholesale investors

  • Centuria relationship assisting in originating transactions and assessing risk

  • Closed 7 deals across four Australian states, total loan facility limit of $149m over Q1 FY22

  • Financing largest deal to date

  • ($94m Dangar Street, Wickham, Newcastle project)

  • 93.3% of loan volumes secured by first mortgage security, gross average LVR of 63.9%

  • Centuria Bass Credit Fund (CBCF) and Bass Property Credit Fund (BPCF)

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C E N T U R I A C A P I T A L G R O U P

A S X : C N I

Progressing Centuria’s development pipeline Select case studies

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Artist Impression Artist Impression
95-105 South
57 Wyatt Street,
Gippsland Hwy,
Adelaide, SA
Dandenong Sth, VIC
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Late
$40m 4,600 55% Q4 CY21 CY22
EST. VALUE ON sqm PRE-COMMITTED TARGET TARGET
COMPLETION NLA COMMENCEMENT COMPLETION
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$89m ~40,300 8ha 2yr CY22
EST. VALUE ON sqm SITE AREA RENT GUARANTEE TARGET
COMPLETION MULTI ASSET ESTATE ON COMPLETION COMPLETION
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  • ~40,300sqm multi-unit industrial estate on an eight-hectare site. Increases Centuria Industrial REIT’s (ASX: CIP) exposure to the tightly held

  • southeast Melbourne industrial market. Development management agreement in place. Two year rent guarantee on completion. Five Star Green Star target.

Currently an underdeveloped on-grade car park and redundant two-storey building, which adjoins the Centuria-managed 80 Flinders Street office building and car park. Development Approval (DA) for an A-Grade asset has already been secured with strong support from the City of Adelaide to revitalise the precinct’s public spaces. Five Star Green Star and Five Star NABERS targets.

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6-8 Munroe Land,
Albany Auckland, NZ
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15yr EARLY
NZ$147m ~15,900 PRE-COMMITMENT CY23
EST. VALUE ON COMPLETION [1] sqmNLA COUNCIL ON COMPLETIONTO AUCKLAND COMPLETIONTARGET
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Asset Plus (NZX: APL) acquired Large greenfield ~4,200sqm corner site with three road frontages off-market in December 2019. Two thirds preleased to Auckland Council with a 15 year term lease from completion. Target completion expected early calendar year 2023.

  1. Reflected in CNI’s AUM on an as if complete basis

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C E N T U R I A C A P I T A L G R O U P A S X : C N I

Sustainability at Centuria Capital Developing a flexible and relevant sustainability framework

Centuria Capital will be releasing its first Sustainability Report later this year. Highlights to be featured in this report are summarised here. Centuria Capital’s sustainability framework flows through to the listed REITs (ASX:CIP and ASX:COF).

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Environmental data CENTURIA OFFICE REIT CENTURIA INDUSTRIAL REIT
ESG Reporting Climate Action
Energy, emission (scope 1 & 2), NABERS Sustainability 42 Hoepner Rd, Bundamba
Centuria Capital to release its first Centuria supports the
Sustainability Report recommendations of the TCFD and water data collected for assets Portfolio Index Ratings One of Australia’s first
within COF 4.7 Energy | 3.2 Water 5 Star Green Star Industrial assets
91%1 $1.0bn 94%2
Member of the Diversity Tenant Engagement Specialised healthcare real
Employee engagement
Council of Australia 91% of surveyed tenants estate under management
94% of employees enjoy
would recommend Centuria Completed $72.2m of social working at Centuria
as an asset manager and affordable housing
BOARD
DIVERSIFICATION
Appointment of 4 independent First Modern Slavery
directors to Group and RE Boards Culture & ESG Statement delivered GENDER DIVERSITY
Board Committee AT CENTURIA Employee training
CENTURIA CAPITAL: Kristie Brown Over a third of cleaning
Established [3] Code of Conduct
(ASX:COF) CPFL: Nicole Green Oversight of modern slavery, using the Property Council of contracts by value assessed 63% male employees Financial Education
(ASX:CIP) CPF2L: Jennifer Cook, diversity & inclusion, climate Australia 365 platform 37% female employees Cyber security
Natalie Collins change
ENVIRONMENTAL
SOCIAL
SELECT INITIATIVES
GOVERNANCE
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  1. Centuria Capital undertakes regular tenant surveys. The figure reported from the Group’s FY21 survey 2. Centuria Capital undertakes regular employee engagement surveys The reported figure is from the Groups FY21 survey 3. The Centuria Culture and ESG Board Committee is chaired by Susan Wheeldon, Independent Non-Executive Director of Centuria Capital Limited

C E N T U R I A C A P I T A L G R O U P A S X : C N I 9

Executing CNI’s strategy

  • CNI S&P/ASX 200 Index inclusion has strengthened corporate profile across Australasia with Centuria NZ and Primewest performing strongly

  • Increased platform size, greater asset-class diversity/geographic presence and larger Cap Trans team has dramatically increased deal flow

  • Larger in-house distribution network has demonstrated strong support for Centuria unlisted funds e.g. $224m Centuria Government Income Fund No.1

  • COF and CIP have received strong capital market support for recent major portfolio acquisitions ($0.7bn combined acquisitions)

  • Recent acquisitions for GIC Daily Needs Retail Mandate, strong pipeline as retail re-rating continues ($225m, 5 assets filled, $675m mandate capacity)

  • Centuria Healthcare and Centuria Industrial Fund (NZ) accessing unlisted investor demand for open-ended funds

  • CNI FY22 OEPS guidance of 13.2cps, DPS guidance of 11.0cps

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UNLISTED: 1 MCNAB AVENUE, FOOTSCRAY, VIC
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C E N T U R I A C A P I T A L G R O U P A S X : C N I

Definitions

Operating Segments: Group has six reportable operating segments. These reportable operating segments are the divisions which report to the Group’s Chief Executive Officers and Board of Directors for the purpose of resource allocation and assessment of performance.

The reportable operating segments are:

  • Property Funds Management: Management of listed and unlisted property funds

  • Developments: Completion of structured property developments which span sectors ranging from Commercial Office, Industrial and Health through to Affordable Housing and Residential Mixed Use

  • Property and Development Finance: Provision of real estate secured non-bank finance for development projects, bridge finance and residual stock

  • Investment Bonds Management: Management of the Benefit Funds of Centuria Life Limited and management of the Over Fifty Guardian Friendly Society Limited. The Benefit Funds include a range of financial products, including single and multi-premium investments

  • Co-investments: Direct interest in property funds and other liquid investments

  • Corporate: Overheads supporting the Group’s operating segments

Non-operating segments: Non-operating items comprises transaction costs, mark-to-market movements on property and derivative financial instruments, and all other non-operating activities. Includes Benefit Funds and Controlled Property Funds. Represents the operating results and financial position of the Benefit Funds which are required to be consolidated in the Group’s financial statements in accordance with accounting standards

AUM: Assets under management

CAGR: Compound annual growth rate

CIP: Centuria Industrial REIT comprises the Centuria Industrial REIT ARSN 099 680 252 and its subsidiaries. The Responsible Entity of CIP is Centuria Property Funds No. 2 Limited ACN 133 363 185

COF: Centuria Office REIT comprises the Centuria Office REIT ARSN 124 364 718 and its subsidiaries. The Responsible Entity of COF is Centuria Property Funds Limited ACN 086 553 639

CNI, CCG or the Group: Centuria Capital Group comprises of Centuria Capital Limited ABN 22 095 454 336 (the ‘Company’) and its subsidiaries and Centuria Capital Fund ARSN 613 856 358 (‘CCF’) and its subsidiaries. The Responsible Entity of

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CCF is Centuria Funds Management Limited ACN 607 153 588, a wholly owned subsidiary of the Company

CPFL: Centuria Property Funds Limited CPF2L: Centuria Property Funds No. 2 Limited DPS: Distribution per stapled security EPS: Earnings per stapled security IRR: Internal Rate of Return NPAT: Net Profit After Tax NTA: Net Tangible Assets REIT: Real Estate Investment Trust WACR: Weighted Average Capitalisation Rate WALE: Weighted Average Lease Expiry

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C E N T U R I A C A P I T A L G R O U P A S X : C N I

Disclaimer

This presentation has been prepared by Centuria Capital Limited and Centuria Funds Management Limited as responsible entity of Centuria Capital Fund (together the stapled listed entity CNI).

Centuria Property Funds Limited (ABN 11 086 553 639, AFSL 231 149) ('CPFL') and Centuria Property Funds Management No. 2 Limited (ABN 38 133 363 185, AFSL 340 304) ('CPF2L') are fully owned subsidiaries of CNI. CPF2L is the responsible entity for the Centuria Industrial REIT (ARSN 099 680 252) (ASX: CIP). CPFL is the responsible entity for the Centuria Office REIT (ARSN 124 364 718) (ASX: COF), the Centuria Diversified Property Fund (ARSN 611 510 699) and the rest of Centuria's unlisted property funds. Investment in Centuria's property funds is subject to risks that are set out in the Product Disclosure Statement ('PDS') for the fund. The PDS for any open fund is made available on Centuria’s website (centuria.com.au). Investors should read the PDS in full before making a decision to invest.

Past performance is not a guarantee of future performance.

This presentation is provided for general information purposes only. It is not a prospectus, 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 CNI or the acquisition of securities in CNI or its subsidiaries. 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 CNI.

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 own 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.

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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 CNI or any other investment product. The information in this presentation has been obtained from and based on sources believed by CNI to be reliable. To the maximum extent permitted by law, CNI and the members of the Centuria Capital Group 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, CNI 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 otherwise arising in connection with it. 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.

Neither CNI nor any member of Centuria Capital Group 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, CNI assumes no obligation 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 of CFML consider that distributable earnings reflect the core earnings of the Centuria Capital Fund. All dollar values are in Australian dollars ($ or A$) unless stated otherwise.

C E N T U R I A C A P I T A L G R O U P A S X : C N I 1 2

CENTURIA METROPOL ITAN REIT ASX:CMA 13

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