CHARTER HALL GROUP — AGM Information 2008

Nov 9, 2008

Charter Hall 2008 Annual General Meeting 10 November 2008

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Group update

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FY08 highlights
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	FY08	FY07	Change
NPAT (AIFRS)	$67.5m	$43.2m	56%
Basic EPS (AIFRS)	16.31cps	12.00cps	36%
Underlying NPAT1	$52.7m	$34.2m	54%
Underlying EPS	12.74cps	9.51cps	34%
DPS	12.60cps	10.44cps	21%

EPS and DPS

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EPS DPS 12.74 12.60
34%
10.44
9.51
47%
7.10
6.47
FY06 FY07 FY08
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NOTES:

1. Excluding fair value adjustments, gains on sale and unrealised foreign exchange gains.

Charter Hall AGM 2008 4

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FY08 highlights
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FY08 Revenue $88.5 million

FY08 EBITDA $66.8 million[1]

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Development
9%
Corporate EBITDA
(annuity) 17%
Transaction
fees
8%
CHPT Revenue
Trust EBITDA
Performance 46%
(annuity) 61%
fees
Corporate EBITDA
14%
(other) 22%
Services fees
23%
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NOTE:

1. Corporate EBITDA (annuity) includes base fund management, development management and property management income. Corporate EBITDA (other) includes all other corporate income streams.

Charter Hall AGM 2008 5

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Property expertise
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Charter Hall is first and foremost a property specialist

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Expert property skills Expert capital sourcing skills
$3.5 billion
developed or
Development
under Raised more than
$550 million over
development CHC equity
last 3 years
Acquired $4
Acquisitions billion over last Raised more than
11 years $1.3 billion of
Wholesale
external equity
Performance ensures access to capital equity
over the last 3
Sold $2 billion
Sales years
over last 11 years
Raised $250
Capital finances property activities
Leased more than Retail equity million over last
750,000m [2] , 3 years
Leasing
majority in last 5
years
Negotiated or
Asset and Manage close to Debt finance secured more
property $4 billion in than $1.4 billion
management property of debt in CY08
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Expert property skills

Charter Hall AGM 2008 6

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Property expertise
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Charter Hall development expertise

• Projects developed or under development have a total completion value of $3.5 billion[1] (including CIP)

• Projects across sectors and geographies

Development projects by sector

Development projects by geography

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Residential
SA NZ
$724m
$156m $73m
VIC QLD
$308m $774m
Office
$1,796m
Industrial
$599m
WA
$621m
Bulky Retail NSW
$433m
$1,619m
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NOTE:

1. Includes Charter Hall developments since 1997 and CIP developments since inception.

Charter Hall AGM 2008 7

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Property expertise
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Charter Hall leasing expertise

• CHC has extensive relationships with repeat business tenants across all mainstream commercial sectors

• Leased 140,700m[2] to major office tenants

• Leased 445,829m[2] to major industrial tenants (mostly through CIP)

• Leased 160,400m[2] to major retail tenants[1]

Office tenants (‘000m[2] )

Industrial tenants (‘000m[2] )

Retail tenants (‘000m[2] )

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Telstra Corporation 50.0 Coles Myer
Commonwealth Bank 25.0 Toll 70.2
American Express 17.0 Laminex 49.5
Clough 15.5 Warehouse Group 46.0
Hutchison Telecom. 8.0 Star Track Express 44.0
Dimension Data 6.0 Fosters 30.2
Parsons Brinckerhoff 5.8 The Reject Shop 26.6
Medicare 5.3 DHL Danzas 22.8
Police&Nurses Credit Union 4.1 Bax + Schenker 16.9
KPMG 4.0 Alinta 16.1
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123.6 Bunnings 95.4
Harvey Norman 16.8
The Good Guys 10.1
Super A Mart 5.9
Woolworths 5.8
Coles 4.0
Fantastic Furniture 3.7
Bev Marks 3.4
Spotlight 3.2
Truscots 2.9
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NOTE: 1. Includes sale and leaseback to Bunnings of 95,400m[2] .

Charter Hall AGM 2008 8

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Property expertise
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Property portfolio metrics[1]

	CHPT co-investment	Valuer’s market cap rate	Minimum fixed rental reviews	Valuer’s discount rate	Passing rent as % of market
	($m)	(%)	(% p.a.)	(%)	(%)
Direct Properties (Chullora)	17	8.25	3.63	8.9	121.5
Core Plus Office Fund (CPOF)	193	6.77	4.01	8.8	86.5
Core Plus Industrial Fund (CPIF)	58	7.09	3.00	8.9	96.5
Core Plus Retail Fund (CPRF)	155	7.04	3.21	8.8	97.2
Diversified Property Fund (DPF)	24	7.10	3.39	8.8	89.7
Charter Hall Umbrella Fund (CHUF)	50	6.98	3.48	8.9	93.5
Total/average	497	6.98	3.55	8.9	93.1

NOTE: 1. Post CPRF first close, 31 July 2008.

Charter Hall AGM 2008 9

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Property expertise
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Property portfolio metrics[1]

Weighted average lease expiry (By income)

Sector diversification (By income)

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Direct Properties 2.4
Industrial
DPF 7.6 19%
Retail
35%
CPIF 12.6
CPOF 8.0
CPRF 9.0
CHUF 9.5
Office
46%
Weighted Average 8.7
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NOTE: 1. Post CPRF first close, 31 July 2008.

Charter Hall AGM 2008 10

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Property expertise
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Property portfolio metrics[1]

CHPT weighted average lease expiry (By income)

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49.6%
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7.7% 8.0%
4.8% 5.4% 5.0% 5.8% 5.9%
4.0% 3.8%
FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY18+
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NOTE: 1. Post CPRF first close, 31 July 2008.

Charter Hall AGM 2008 11

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Funds management
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Funds under management of $3.89 billion[1]

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Charter Hall FUM
$3,895m
Wholesale Investor Funds Retail Investor Funds Property
$17m
$3,281m $596m
Opportunistic Core Plus
$847m $2,434m
CHOF4 CHOF5 CPOF CPIF CPRF DPF CHUF CHIFs Chullora
$490m $357m $1,600m $339m $495m $249m $223m $124m $17m
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NOTE: 1. Post CPRF first close, 31 July 2008.

Charter Hall AGM 2008 12

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Funds management
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Income streams

Income streams
	Charter Hall
	CIP1 CHOF42 CHOF53 CPOF CPIF CPRF DPF CHUF CHIF4 Direct � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � Opportunistic Core Plus Core (retail)
	CIP1	CHOF42	CHOF53	CPOF	CPIF	CPRF	DPF	CHUF	CHIF4	Direct
Investment returns
Direct property income										�
Co-investment income				�	�	�	�	�
Development investment income	�	�	�
Fees – enhance ROE
Base fund management fees		�	�	�	�	�	�	�	�
Property management fees				�	�	�	�		�	�
Development management fees		�	�	�	�	�
Performance fees		�	�	�	�	�	�	�	�
Transaction fees							�	�	�

NOTES:

1. Commercial and Industrial Properties Pty Ltd (CIP).

2. Charter Hall Opportunity Fund 4 (CHOF4).

3. Charter Hall Opportunity Fund 5 (CHOF5).

4. Charter Hall Investment Funds (CHIF2-6).

Charter Hall AGM 2008 13

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Capital management
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◆ Entered into or extended almost $1.4 billion of finance facilities in CY08 to 31 October

Entity	Amount	Term at establishment (years)	Provider(s)	Entered into
CHC $100m 3.0 NAB August CPOF $694m1 3.0 NAB, St George, CBA, Westpac2 January - June CPRF $250m 3.0 NAB, St George3 August DPF $70m 3.0 NAB October CHOF $263m Construction NAB, Westpac2 January - September
Total $1,377m

NOTES:

1. Includes $114 million of facilities for which credit approval has been received but facility agreements have not yet been signed. 2. Not in equal proportions.

2. In equal proportions.

Charter Hall AGM 2008 14

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Capital management
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Debt finance management (at 30 September 2008)

• Headstock gearing 9.7%

• Look through gearing 42%

	Drawn	CHC	Tangible	Gearing	Duration	Percentage	Hedge	Average
	balance4	co-invest	assets4	level	remaining	hedged	duration	rate
Entity	($m)	(%)	($m)	(%)	(yrs)	(%)	(yrs)	(%)
Charter Hall Group (CHC)	$57m1	100%	$593m1	9.7%	2.8 yrs	105%	2.5 yrs	7.3%
Core Plus Office Fund (CPOF)	$666m	23%	$1,437m	46.4%	2.0 yrs	75%	6.4 yrs	7.6%
Core Plus Industrial Fund (CPIF)3	$151m1	25%	$386m1	39.1%	2.5 yrs	92%	7.7 yrs	7.4%
Core Plus Retail Fund (CPRF)	$181m	62%	$425m	42.6%	2.8 yrs	97%	6.3 yrs	8.4%
Diversified Property Fund (DPF)	$113m	17%2	$219m	51.5%	3.3 yrs	125%	6.2 yrs	7.8%
Charter Hall Opportunity Fund 4 (CHOF4)	$104m	3%	$217m	48.2%	1.7 yrs	37%	0.0 yrs	0.0%
Charter Hall Opportunity Fund 5 (CHOF5)	$134m	15%	$250m	53.4%	1.2 yrs	16%	1.0 yrs	8.6%

NOTES:

1. CHC: Net of proceeds from sale of Chullora, CPIF: Includes Chullora.

2. Stake increases to 24% when including short term bridging loan. 3. Consolidates 100% of the Coles Distribution Centre. 4. Net of cash.

Charter Hall AGM 2008 15

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Earnings and distribution
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• Market conditions have deteriorated substantially since Charter Hall announced Full Year Results (25 August)

• These challenging conditions impact Charter Hall’s ability to achieve FY09 EPS guidance of 13.4cps

• In this volatile time it is difficult to forecast the amount of non-recurring income

• The Board and Management replace FY09 forecast EPS[1] of 13.4cps with revised guidance of 9.73cps

• Revised FY09 EPS of 9.73cps based on conservative revenue adjustments outlined below

• No performance fees

• No transaction fees

• Development investment income limited to half of FY08 CIP contribution

• Based on revised EPS guidance, Board and Management intend to distribute 8.0cps for FY09

• Focus on paying out recurring earnings

• Subject to CHPT paying out 100% of taxable income

NOTE: 1. Previous and revised guidance EPS include tax benefit in income statement.

Charter Hall AGM 2008 16

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Charter Hall business model
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◆ Charter Hall business model is sustainable

Property specialist	– Charter Hall’s property expertise essential in current market
Quality property portfolio	– High quality tenants – Long WALEs – High fixed rental increases
Agile	– Simple business model and focus only on Australasia – Enables CHC to be flexible and quickly adapt
Continued access to equity funding	– CHC has committed equity ready for drawdown – Raising new equity commitments for new fund initiatives in current market
Continued access to debt funding	– CHC has good relationship with all major banks in Australia – CHC has refinanced or extended almost $1.4 billion of debt in CY08 to date
Opportunities	– Current climate reduces number of market participants and provides for excellent opportunities

Charter Hall AGM 2008 17

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Disclaimer
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This presentation has been prepared by Charter Hall Group (Charter Hall Limited (ABN 57 113 531 150) and Charter Hall Funds Management Limited (ABN 31 082 991 786) (AFSL 262861) as the Responsible Entity for Charter Hall Property Trust (ARSN 113 339 147)). It is a presentation of general background information about the Group’s activities current at the date stated on the relevant slide or otherwise at the date of this presentation, 4 November 2008. It is a summary and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. A reader should, before making any decisions in relation to their investment or potential investment in the Charter Hall Group, seek their own professional advice. This presentation is not an offer or invitation for subscription or purchase of securities or other financial products.

Indications of, and guidance on, future earnings and financial position and performance are “forward-looking statements”. Due care and attention has been used in the preparation of forecast information. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements.

Charter Hall AGM 2008 18