CHARTER HALL GROUP — AGM Information 2009

Nov 10, 2009

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Charter Hall Group Group Update from the Joint Managing Directors Annual General Meeting 11 November 2009

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Joint Managing Directors’ Group Update

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333 George Street, Sydney NSW (CPOF)

Charter Hall Business Overview

• Charter Hall is a property funds manager with in-house development and property services skills

  • Listed as a stapled security on ASX and is included in the S&P/ASX A-REIT 200 Index

• ASX Ticker: CHC

• Charter Hall Limited (CHL) Charter Hall Property Trust (CHPT) Alignment through co-investment

• Funds Management Platform

• • Funds Management AUM $3,236m

• • Asset Management Wholesale Investor Funds

• • Transactions $2,759m

• • Property Management Retail Investor Funds • Opportunistic Core Plus Leasing $477m

• • $781m $1,978m Development Management

• • Advisory

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Charter Hall Group AGM 2009

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Charter Hall Business Overview

� Domestic focus with strong region-wide presence

• Largest manager of core plus and opportunistic real estate funds in Australasia

• 65 staff across Australia and New Zealand

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Charter Hall Group
AGM 2009
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Charter Hall Business Overview

� Property specialist with a focus on fundamentals

Expert capital sourcing skills

Expert property skills

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$3.5 billion
Development developed or under
Raised more than
development
CHC equity $600 million over
last 4 years
Acquired $4 billion
Acquisitions
over last 12 years
Raised more than
Wholesale $1.2 billion of
Performance ensures access to capital capital external equity over
the last 4 years
Sold $2.2 billion
Sales
over last 12 years
Capital finances property activities Raised $250
Retail capital million over last
Leased more than
3 years
Leasing 825,000m [2] , majority
in last 5 years
Negotiated or
Asset and secured more than
Debt finance
Manage $3.2 billion $1.1 billion of debt
property
management in property in last 12 months
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Charter Hall Group AGM 2009

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Charter Hall Business Overview

� Across the risk/return spectrum

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Return
20%+
OPPORTUNISTIC
CHOF4, CHOF5, CHOF6
Core risk
with enhanced
returns
15% SSF – OFFICE Enhanced
(club-style)
CORE PLUS
11-12%
CPOF, CPIF, CPRF
CORE
9-11%
CHUF, DPF, CHPT, CHIF 2-6
Lower Risk Higher Risk
Core investments 70% core, 30% enhanced Enhanced returns Development opportunities
REIT, HNW and retail investors Wholesale investors Wholesale investors Wholesale investors
Charter Hall Group
AGM 2009 6
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Charter Hall Business Overview

� Manager of high quality portfolios

Top 10 tenants (by income)[1]

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Telstra 13.1%
Coles Group 8.6%
Westpac Group 8.0%
Commonw ealth Government 5.1%
American Express 4.2%
Queensland Gas 3.6%
Mercer 2.9%
Wesfarmers (ex-Coles) 2.1%
Woolw orths 1.7%
Wilson Car Park 1.6%
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Lease expiry profile (by income)[1]

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VACANT 2.6%
FY10 5.3%
FY11 7.5%
FY12 7.0%
FY13 5.3%
FY14 4.5%
FY15 7.5%
FY16 3.4%
FY17 5.3%
FY18 8.6%
FY19+ 36.8%
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Weighted Average Fixed Rental Growth pa[1]

WALEs (by income)[1]

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CPOF 4.02%
CPIF 3.21%
CPRF 3.48%
DPF 3.63%
CHUF 3.59%
2
CHC 3.63%
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CPOF 6.7yrs
CPIF 9.8yrs
CPRF 8.7yrs
DPF 7.6yrs CPOF – Core Plus Office Fund
CPIF – Core Plus Industrial Fund
CHUF 8.2yrs CPRF – Core Plus Retail Fund
DPF – Diversified Property Fund
CHC2 8.2yrs CHUF – Charter Hall Umbrella Fund
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NOTE: Charter Hall Group 1. As at 30 June 2009 AGM 2009 2. CHC is weighted for its co-investment stakes in the underlying funds

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FY09 Summary

• Over FY09, CHC has substantially de-risked its balance sheet and managed funds through asset sales and equity raising initiatives

• Elimination of CHC balance sheet debt

• Asset sales of $228 million across CPOF, CPRF and DPF

• Refinanced $1.1 billion of debt in FY09

• Maintained strong occupancy, weighted average lease expiry (WALE) and weighted average rent review (WARR) metrics across the managed funds investment portfolios

• Attracted a strategic investor in Gandel Group to both CHC and managed funds

• Successfully completed and leased two office projects totalling 52,000m[2] NLA with a combined value of $400 million

• Gained inclusion in the S&P/ASX 200 Index

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Charter Hall Group AGM 2009

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FY09 Summary

	FY09	FY08
Underlying Earnings1	$34.8m	$52.7m
Underlying EPS2	7.61cps	12.74cps
DPS	4.96cps	12.60cps
NPAT (AIFRS)	($82.2m)	$67.5m

	30 JUNE 09 PF3	30 JUNE 08
AUM	$3.4bn	$3.9bn
Total Group Assets	$498m	$802m
Total Group Net Assets	$483m	$492m
NTA	$0.69	$1.19
Gearing4	nil	31%

NOTES:

1. Excluding fair value adjustments, impairments, gains on sale, non-cash tax benefits and non cash expenses 2. Underlying Earnings redefined in FY09 to exclude income tax benefit

2. Pro forma basis as per the full year results presentation released on 25 August 2009

3. Calculated as borrowings net of cash over total assets net of cash

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Charter Hall Group AGM 2009

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FY09 Group Revenue

Revenue composition

FY09 revenue breakdown ($57.9 million)

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$41.6m
Performance
FY08 Development Fees Transaction
Investment
2% Fees
FY09 3%
1%
$28.8m
Development
$26.4m
Management
Fees
19%
$20.4m
CHPT Revenue
45%
Property
Management
and Other Fees
$12.3m
4%
$7.5m
$6.7m
Base Asset
$1.5m
$0.9m
$0.4m Management
Fees
CHPT Revenue Services Fees1 Performance Fees Transaction Fees Development 26%
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NOTE:

1. Services fees include base asset management, development management, property management and other fees

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Charter Hall Group AGM 2009

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September 09 Update

� As a result of the September 2009 revaluations:

• Further asset value falls across the CHC-managed Investment Funds

• 8.09% weighted average market cap rate for CHPT’s investment portfolio

• CHC un-audited 30 September 2009 NTA $0.63

• CHC AUM $3.24bn

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	CHPT	MARKET	INCREASE	VALUERS’
	CO-INVESTMENT	CAP RATE	SINCE 30	DISCOUNT
			JUNE 2008	RATE
	($M)	(%)	(%)	(%)
Core Plus Office Fund (CPOF)	116	7.80%	0.97%	9.49%
Core Plus Industrial Fund (CPIF)	56	8.40%	1.19%	9.81%
Core Plus Retail Fund (CPRF)	112	8.20%	1.12%	9.72%
Diversified Property Fund (DPF)	20	8.21%	1.16%	9.48%
Charter Hall Umbrella Fund (CHUF)	44	8.14%	1.14%	9.65%
Total/weighted average	348	8.09%	1.09%	9.64%

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Charter Hall Group AGM 2009

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September 09 Update

� CHC balance sheet debt remains at nil

Group debt expiry profile

�Look through gearing 37.0% – All funds’ gearing non-recourse to investors including CHC �No significant debt expiries in managed funds until FY11 $0m $50m $100m $150m $200m $250m $300m $350m $400m
	$333m DPF
	2 CPIF
	$83m CPRF
	CPOF
	$162m
	$98m
	$67m
	1HFY10 2HFY10 1HFY11 2HFY11 1HFY12 2HFY12 1HFY13
DEBT FACILITY1 CHC	CPOF CPRF CPIF DPF
Net debt drawn ($m) nil Duration (years)3 1.8 435 Asset values ($m)2	245 356 595 83 132 90 2.4 1.8 2.2 2.1 158 1,194
GEARING METRICS
Current LVR3 nil LVR Covenant4 25% LVR headroom5 N/A	50% 34% 37% 57% 57% 55% 55% 65% 12% 38% 32% 5%

NOTES:

1. Analysis excludes development related debt

2. Asset values shown net of cash

3. Calculated on a weighted average basis

4. Property LVR covenants shown for all facilities Charter Hall Group

5. Headroom percentage calculated as the percentage by which asset values can fall before reaching LVR covenants. Calculated on a weighted average basis AGM 2009

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Well Positioned Business Model

Australian Pension Fund savings compounded by increasing inflows and investment returns

Australian Superannuation Funds are currently overweight the property asset class, however:

• ASX 200 index increasing 10% significantly alleviates overweight position and many funds will be at target weight

• Superannuation Industry is poised for exceptional growth over the next 7 years

• As one of the few fund managers to maintain a strong reputation in both the retail and wholesale space, CHC is highly leveraged to this growth

Self Managed Super Funds Industry, Corporate & Government Funds

Retail Unlisted

Wholesale Unlisted & Listed

CHC Managed Funds

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Charter Hall Group AGM 2009

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Group Outlook

� CHC is well positioned to substantially grow its business platform and earnings as the market recovers

• Well capitalised after successfully executed capital management initiatives

• Property specialist with products across the risk-return spectrum

� CHC has retained “brand quality” with wholesale and retail investors

• On-going support from wholesale investors and financial planners

� Continue to grow existing suite of funds

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• New developments to provide significant contribution to growth

• Transactional revenue to return with flow of capital

• Performance fees in the longer term

� New fund initiatives match changing investor appetite

• Wholesale (ie Special Situations Fund)

• Retail (ie closed-end syndicates)

� Expand and diversify equity sources for CHC managed funds

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Charter Hall Group AGM 2009

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Further information David Southon Joint Managing Director +61 2 8908 4025 davids@charterhall.com.au David Harrison Joint Managing Director +61 2 8908 4033 davidh@charterhall.com.au

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Disclaimer

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 of this presentation, 11 November 2009. It is a summary and does not purport to be complete. It is to be read in conjunction with the Charter Hall Consolidated Yearly Financial Report filed with the Australian Securities Exchange on 25 August 2009. 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.

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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.

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Charter Hall Group AGM 2009

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Sydney Melbourne Brisbane Perth Adelaide Auckland

charterhall.com.au