CHARTER HALL GROUP — AGM Information 2018

Nov 14, 2018

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15 November 2018 Charter Hall Group Annual General Meeting 2018

2 Market Street, Sydney NSW

Charter Hall Group I 2018 Annual General Meeting

2018 Annual General Meeting

Agenda

1. Chair’s Address

2. Managing Director’s Address

David Clarke

David Harrison

3. Formal Business

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Charter Hall Group I 2018 Annual General Meeting Our Strategy 1. Chair’s Address

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Coles, 2 Sturton Road SA

Charter Hall Group I 2018 Annual General Meeting

2018 Annual General Meeting

Board of Directors

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David Clarke Chair

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David Ross Non-Executive Director

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Anne Brennan Non-Executive Director

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Karen Moses Non-Executive Director

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Philip Garling Non-Executive Director

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David Harrison Managing Director & Group CEO

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Charter Hall Group I 2018 Annual General Meeting

2018 Annual General Meeting

Sustained Growth

TOTAL PERFORMANCE OVER 1, 3, 5 YEARS (%P.A)[1]

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24.6%
19.3%
17.1%
13.0%
11.7% 12.0%
11.2% 11.1%
9.7%
1 Year 3 Years p.a. 5 Years p.a.
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Charter Hall Group securityholders S&P/ASX 200 Property Accumulation Index Mercer/IPD Wholesale Pooled Property Funds Index

1. Source: MSCI/IPD, UBS and S&P/ASX. Returns are shown to 30 September 2018

OPERATING EARNINGS PER SECURITY GROWTH[2]

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Pre-tax OEPS
Post-tax OEPS
43.5cps
40.5cps
37.7cps
30.4cps 35.9cps
27.5cps
25.3cps
22.9cps
FY13 FY14 FY15 FY16 FY17 FY18
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DISTRIBUTIONS PER SECURITY GROWTH

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DPS (grossed up)
DPS
36.9cps
30.0cps
26.9cps 31.8cps
24.2cps
22.3cps
20.2cps
FY13 FY14 FY15 FY16 FY17 FY18
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1. Operating earnings per security prior to FY14 restated to include security-based benefits expense

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Charter Hall Group I 2018 Annual General Meeting

2. Managing Director’s Address

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1 Shelley Street, Sydney NSW

Charter Hall Group I 2018 Annual General Meeting

Property Funds Management

Group Funds Management Portfolio[1]

	Portfolio Value	No. of	Gross Income	WALE	Occupancy	WACR
	($bn)	Properties	($m)	(years)	(%)	(%)
Nov 18	26.4	779	1,759	7.7	97.9	5.76
Jun 18	23.2	330	1,634	7.7	98.1	5.74
Jun 17	19.8	329	1,454	7.7	98.0	6.07

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Diversification by equity source Asset type diversification WALE by sector
Social Other
Unlisted
Retail Infrastructure 1% 9.5 9.6
Equity 5%
16%
7.9
Industrial
24%
6.5
Listed Office
Funds $26.4bn $26.4bn 46%
20%
Unlisted Shopping
Wholesale Centre Retail
Equity 14%
64% Long WALE
Office Retail Social Industrial
Retail
Infrastructure
10%
1. Portfolio value and number of properties as at 7 November. All other values as at 30 September.
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Charter Hall Group I 2018 Annual General Meeting

Property Funds Management

Funds Under Management Growth

Continued strong FUM growth – up 13.8% YTD

Funds under management movement ($bn)

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$26.4bn
$1.6bn
$1.8bn ($0.4bn) $0.2bn
$0.0bn
$23.2bn
Jun-18 Acquisitions Disposals Revaluations Capex Folkestone Nov-18
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Funds under management by equity source ($bn)
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Unlisted Wholesale Equity
Listed Funds
Unlisted Retail Equity
$26.4bn
$4.2bn
$23.2bn
$2.9bn
$19.8bn $5.4bn
$4.4bn
$17.5bn $2.8bn
$2.5bn
$4.1bn $16.8bn
$13.6bn $15.9bn
$2.5bn
$11.5bn $1.9bn
$12.9bn
$12.4bn
$9.9bn $1.7bn $2.2bn
$1.7bn
$2.0bn $9.5bn
$1.8bn
$7.8bn
$6.5bn
Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Nov-18
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Charter Hall Group I 2018 Annual General Meeting

Property Funds Management

Transactional Activity

Very strong transactional activity with gross transactions YTD of $2,164m

• All equity sources continue contributing to transaction volumes

• Gross transactions YTD does not include Folkestone acquisition

YTD FY19	Office	Industrial	Long WALE Retail	Shopping Centre Retail	Total
Acquisitions	1,052m	335m	293m	83m	1,764m
Divestments	(195m)	(84m)	(38m)	(83m)	(400m)
Net transactions	857m	251m	255m	-	1,363m
Gross transactions	1,247m	419m	331m	166m	2,164m
FY18	Office	Industrial	Long WALE Retail	Shopping Centre Retail	Total
Acquisitions	1,528m	371m	293m	333m	2,525m
Divestments	(623m)	(22m)	(38m)	(337m)	(1,020m)
Net transactions	905m	349m	255m	(4m)	1,505m
Gross transactions	2,151m	393m	331m	670m	3,545m

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Charter Hall Group I 2018 Annual General Meeting

Property Funds Management

Equity Flows[1]

Continued strong momentum in equity flows with $918m gross equity raised year to date

• Wholesale equity – CPIF and CPOF closed capital raisings with strong support from existing and new investors

• Direct Funds have continued to maintain their market leading status with a further $217m raised year to date across the four open ended funds

• Larger groups looking for co-invest and Partnership opportunities

• CLW successfully completed a $60m institutional placement in October

($m)	FY16	FY17	FY18	YTD FY19
Wholesale Pooled Funds	606	776	649	564
Wholesale Partnerships	467	217	322	77
Listed Funds	76	988	77	60
Direct Funds	318	355	653	217
Gross equity raised	1,467	2,336	1,701	918
Net equity raised	1,099	1,689	1,487	874

1. Equity flows includes equity received or returned only and excludes undrawn equity commitments

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Charter Hall Group I 2018 Annual General Meeting

Property Investment

Sustainability

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Delivering smart solutions that make a difference for our customers and the planet by:

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Increasing our Office portfolio NABERS Energy ratings to a 4.71 Star weighted average and maintaining our 3.5 Star NABERS Energy average weighted rating rating in Retail assets

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Maintaining Australia’s largest Green Star footprint with 178 Green Star Performance ratings across operating assets, and 18 Green Star Design and As Built ratings in our developments

Increasing our renewable footprint with increased renewable installations across our office, industrial and retail sectors to 2,456kW of solar PV generating over 3,670MWh of electricity per annum.

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Woolworths Dandenong Distribution Centre, Dandenong VIC
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Charter Hall is part of the international Philanthropy movement Pledge 1%. Our Pledge is through:

Our People: Our Places: Our Partnerships

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Gave 330 days of our Contributed People’s time with $1.3 Million or 81% of employees 46,054qm in space volunteering in the community

$600,000 for community programs and services

INNOVATION

Included in Top 20 most innovative companies in the ASX200 as rated by innovation consultants, Collective Campus

One of the first in the sector to embrace start-ups, launching Australia’s first PropTech accelerator program late last year

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Charter Hall Group I 2018 Annual General Meeting

Property Investment

Property Investment Portfolio

	Portfolio Value	No. of	WALE	Occupancy	WARR	WACR
	($m)	Properties	(years)	(%)	(%)	(%)
Nov 18	1,799	727	7.2	97.4	3.6	5.81
Jun 18	1,706	298	7.2	97.9	3.6	5.80
Jun 17	1,527	292	7.4	97.7	3.6	6.09

Diversification by Property Investment

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FET
CHOT
6%
14%
CLW
11%
DCSF
2%
DIF4
CPOF
2%
14%
CLP
8% $1,799m
CCT
1%
SSF
CPIF 2%
7% BSWF
6%
LWHP
5%
CQR LWIPs
17% Wholesale 1%
SC
6%
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Diversification by sector

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Social
Infrastructure
6%
Industrial
22%
Office
39%
$1,799m
Shopping
Centre Retail Long WALE
23% Retail
10%
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Charter Hall Group I 2018 Annual General Meeting

3. Formal Business

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2 Hume Highway, Chullora NSW

Charter Hall Group I 2018 Annual General Meeting

Formal Business

Formal Business

• If there are any Securityholders who are eligible to vote who have not received their yellow card, please see a representative from Link Market Services desk

• Those Securityholders holding a red card are not eligible to vote but can speak at the meeting

• Visitors holding a blue card are not eligible to vote or speak at the meeting

• Copies of the Notice of Meeting, Explanatory Memorandum and Annual Report are available from the registration desk

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Charter Hall Group I 2018 Annual General Meeting

Formal Business

Item 1 – Annual Report

To receive and consider the Annual Report, consisting of the Financial Report and Director’s Report, and Auditor’s Report for the year ended 30 June 2018.

Note: There is no requirement for Securityholders to approve these reports.

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Charter Hall Group I 2018 Annual General Meeting

Formal Business

Item 2 – Re-election of Directors of CHL

To consider and, if thought fit, pass the following ordinary resolutions of CHL:

2.1 “That Ms. Anne Brennan, a Director of CHL retiring in accordance with the CHL Constitution, is re-elected as a Director of CHL.”

• 2.2 “That Mr. Philip Garling, a Director of CHL retiring in accordance with the CHL Constitution, is re-elected as a Director of CHL

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Charter Hall Group I 2018 Annual General Meeting

Formal Business

Item 2.1 – Proxies – Re-election of Anne Brennan

FOR: 356,634,321 (95.5%)

OPEN: 375,747 (0.1%)

AGAINST: 16,283,160 (4.4%)

ABSTAIN: 16,088

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Charter Hall Group I 2018 Annual General Meeting

Formal Business

Item 2.2 – Proxies – Re-election of Philip Garling

FOR: 364,166,860 (97.6%)

OPEN: 367,268 (0.1%)

AGAINST: 8,737,645 (2.3%)

ABSTAIN: 37,543

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Charter Hall Group I 2018 Annual General Meeting

Formal Business

Item 3 – Adoption of Remuneration Report

To consider and, if thought fit, pass the following ordinary resolutions of CHL:

“That the Remuneration Report included in the Annual Report for the year ended 30 June 2018 to be adopted.” Note: The vote on this resolution is advisory only and does not bind Charter Hall Group or the Directors of CHL.

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Charter Hall Group I 2018 Annual General Meeting

Formal Business

Item 3 – Proxies

FOR: 366,633,886 (98.2%)

OPEN: 354,616 (0.1%)

AGAINST: 6,163,225 (1.7%)

ABSTAIN: 157,589

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Charter Hall Group I 2018 Annual General Meeting

Formal Business

Item 4 – Issue of service rights to David Harrison – Performance Rights and Options Plan (Deferred portion of Short Term Incentive (STI) for FY18)

To consider and, if thought fit, pass the following ordinary resolutions of CHL:

“That approval is given for all purposes under the Corporations Act and the Listing Rules (in particular, Listing Rule 10.14) for the issue of 98,241 service rights to Mr. David Harrison as described in the Explanatory Memorandum.”

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Charter Hall Group I 2018 Annual General Meeting

Formal Business

Item 4 – Proxies

FOR: 369,488,317 (99.2%)

OPEN: 348,945 (0.1%)

AGAINST: 2,805,487 (0.7%)

ABSTAIN: 666,567

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Charter Hall Group I 2018 Annual General Meeting

Formal Business

Item 5 – Issue of performance rights to Mr. David Harrison – Performance Rights and Options Plan (Long Term Incentive (LTI))

To consider and, if thought fit, pass the following ordinary resolutions of CHL and CHPT:

“That approval is given for all purposes under the Corporations Act and the Listing Rules (in particular, Listing Rule 10.14) for the issue of 304,238 performance rights to Mr. David Harrison as described in the Explanatory Memorandum.”

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Charter Hall Group I 2018 Annual General Meeting

Formal Business

Item 5 – Proxies

FOR: 333,345,512 (89.5%)

OPEN: 385,626 (0.1%)

AGAINST: 38,914,386 (10.4%)

ABSTAIN: 659,983

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Charter Hall Group I 2018 Annual General Meeting

Questions

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231 Elizabeth Street, Sydney NSW

Charter Hall Group I 2018 Annual General Meeting

Meeting closed

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Artist impression - GPO Exchange, 2-10 Franklin Street, Adelaide SA

Charter Hall Group I 2018 Annual General Meeting

Additional information

Contact information

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David Harrison Managing Director & Group CEO Charter Hall Group

T: +61 2 8651 9142 E: david.harrison@charterhall.com.au

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Russell Proutt Chief Financial Officer Charter Hall Group

T: +61 2 8651 9493

E: russell.proutt@charterhall.com.au

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Sean McMahon Chief Investment Officer Charter Hall Group

T: +61 2 02 8651 9147

E: sean.mcmahon@charterhall.com.au

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Philip Cheetham Head of Listed Investor Relations Charter Hall Group

T: +61 2 8651 9214

E: philip.cheetham@charterhall.com.au

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Charter Hall Group I 2018 Annual General Meeting

Additional information

Disclaimer

IMPORTANT NOTICE & DISCLAIMER

This presentation has been prepared by Charter Hall Funds Management Limited ACN 082 991 786)) (together, with its related bodies corporate, the Charter Hall Group).

This presentation has been prepared without reference to your particular investment objectives, financial situation or needs and does not purport to contain all the information that a prospective investor may require in evaluating a possible investment, nor does it contain all the information which would be required in a product disclosure statement prepared in accordance with the requirements of the Corporations Act 2001 (Commonwealth) (Corporations Act). Prospective investors should conduct their own independent review, investigations and analysis of the information contained in or referred to in this presentation and the further due diligence information provided.

Statements in this presentation are made only as of the date of this presentation, unless otherwise stated. Charter Hall Group is not responsible for providing updated information to any prospective investors. Any forecast or other forward looking statement contained in this presentation may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material.

In making an investment decision, prospective investors must rely on their own examination of the Charter Hall Group, and any other information they consider relevant. All information is provided as indicative only. This presentation is provided to each prospective investor on the condition that it is strictly confidential and is for the sole use of prospective investors and their advisers. It must not be provided to any other party without the written consent of Charter Hall Group which it may withhold in its absolute discretion.

None of Charter Hall Group, its officers, employees, advisers or securityholders (together, the Beneficiaries) guarantee or make any representation or warranty as to, or take responsibility for, the accuracy, reliability or completeness of the information contained in this presentation. Nothing contained in this presentation nor any other related information made available to prospective investors is, or shall be relied on, as a promise, representation, warranty or guarantee, whether as to the past, present or the future. To the extent permitted by law, the Beneficiaries disclaim all liability that may otherwise arise due to any information contained in this presentation being inaccurate, or due to information being omitted from this document, whether by way of negligence or otherwise. Neither the Beneficiaries nor any other person guarantees the performance of an investment with or managed by Charter Hall Group.

All information contained herein is current as at 7 November 2018 unless otherwise stated. All references to dollars ($) are to Australian dollars, unless otherwise stated.

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Sydney Head Office Level 20, No.1 Martin Place Sydney, NSW, 2000 T: +61 2 8651 9000

Charter Hall Group I 2018 Annual General Meeting

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Melbourne

Level 12, 570 Bourke Street Melbourne VIC 3000

T: +61 3 9903 6100

Brisbane

Level 22, Northbank Plaza 69 Ann Street Brisbane QLD 4000 T: +61 7 3228 2000

Perth

Level 5, St Georges Square 225 St Georges Terrace Perth WA 6000 T: +61 8 9269 5900

Adelaide

Level 2, 80 Pirie Street Adelaide SA 5000 T: +61 8 8417 5900

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www.charterhall.com.au