CHARTER HALL GROUP — Annual Report 2013

Aug 27, 2013

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Charter Hall Group

Full Year Results 12 months to 30 June 2013

Agenda

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David Harrison Joint Managing Director

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David Southon Joint Managing Director

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Paul Altschwager Chief Financial Officer

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• 1 Results summary and Group overview

• 2 Operational performance

• 3 Financial performance

• 4 Strategy, outlook and guidance

• 5 Additional information

1

Charter Hall Group / Full year results 30 June 2013

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Results Summary and Group Overview

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Key achievements

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12 months to 30 June 2013

OEPS growth Investment 11.3%[1 ] yield +12% 6.7%[2 ] to 7.5%

$1.0 billion net equity inflows

$3.1 billion transactions $2.1bn of acquisitions $1.0bn of divestments

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18% Australian
FUM growth
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1. FY12 is stated prior to specific items relating to the net CQO transaction fee, CHOF4 performance fee clawback and restructuring costs which total a net loss of $8.7m. There are no specific items in FY13. 2. Property funds investment yield quoted above excludes direct property investments (DRF). Co-investment yield of 7.1% in FY12 results presentation included DRF.

3

Charter Hall Group / Full year results 30 June 2013

Another active year

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Results summary

• Increase in operating earnings per security to 23.94cps, up 11.3%[1 ]

• Statutory profit after tax of $54.8m, up from $16.7m

• Operating earnings of $71.8m, up 12.9%[1 ]

• Distribution of 20.2cps, up 11.0%

• NTA per security is $2.13, in line with 30 June 2012

• Property investments operating earnings up 12.7%

• Property funds investment yield increased from 6.7%[2] to 7.5%

• Co-invested a further $99m, partially funded by $58m of recycled capital

• 18% growth in Australian FUM over the year, 38% increase over the past 3 years

• Acquired $2.1bn of property assets during the year

• Secured $1.0bn in net equity or $1.2bn of gross equity

• Property funds management EBITDA margin on revenue increased from 33.1% to 34.1%

• FY12 is stated prior to specific items relating to the net CQO transaction fee, CHOF4 performance fee clawback and restructuring costs which total a net loss of $8.7m. There are no specific items in FY13.

• Property funds investment yield quoted above excludes direct property investments (DRF). Co-investment yield of 7.1% in FY12 results presentation included DRF.

4

Charter Hall Group / Full year results 30 June 2013

Solid securityholder returns

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Results summary

Charter Hall was the best performing A-REIT in FY13, with a total securityholder return of 80.6%

Distribution per security growth

Total performance over 1 and 3 years to 30 June 2013[1 ]

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70%
60%
80.6%
50%
40%
30%
25.8%
20% 22.8%
24.2%
10% 13.4%
8.6%
0%
1 Year 3 Years
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3 Years
(%pa)
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ASX 200 Accumulation Index

ASX 200 Property Accumulation Index

Charter Hall Group Securityholders

1. UBS and S&P/ASX

2. FY12 OEPS pre-specific items

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20.20
18.20
16.50
12.55
FY10 FY11 FY12 FY13
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Operating earnings per security growth[2 ]

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23.94
21.51
20.60
16.44
FY10 FY11 FY12 FY13
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1. Security price as at 28 June 2013 was $3.87

5

Charter Hall Group / Full year results 30 June 2013

Our strategy in action

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Group overview

Our strategy is to use our specialist property expertise to access, deploy and manage equity and invest alongside our partners to create value and provide superior returns for our clients and Charter Hall securityholders.

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ACCESS DEPLOY MANAGE INVEST
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Access to multiple equity sources $1.2bn gross equity secured during FY13 $179m additional gross equity secured since 1 July 2013	Creating value through attractive investment opportunities $2.1bn property assets acquired during FY13 6 new partnerships and funds established since June 2012	Property funds management, asset management, leasing & development services 301,924sqm lettable area leased 7.5% property co-investment yield (12% growth)	Investing alongside our capital partners $603m Charter Hall property investments As at 30 June 2013 $99m additional Charter Hall capital co-invested during FY13
Access to multiple equity sources	Creating value through attractive investment opportunities	Property funds management, asset management, leasing & development services	Investing alongside our capital partners
$1.2bn gross equity secured during FY13	$2.1bn property assets acquired during FY13	301,924sqm lettable area leased	$603m Charter Hall property investments As at 30 June 2013
$179m additional gross equity secured since 1 July 2013	6 new partnerships and funds established since June 2012	7.5% property co-investment yield (12% growth)	$99m additional Charter Hall capital co-invested during FY13

6

Charter Hall Group / Full year results 30 June 2013

Australian focused property platform Group overview

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Charter Hall manages a $10.3bn total property portfolio

NO. OF PROPERTIES	NO. OF TENANTS	LETTABLE AREA (SQM)	TOTAL ASSETS ($M) FY13	GROSS INCOME ($M)
2002	2,968	2.8m	10,3231	909
Equity	source diversification		Asset type diversification
	June 2013		June 2013

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Equity source diversification
June 2013
Retail Investor Funds
$1.7bn (16%)
Listed
$2.2bn (21%)
Wholesale
Partnerships and
Mandates
Wholesale Pooled
$3.7bn (37%)
$2.7bn (26%)
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Industrial
$1.1bn (11%)
Retail Residential
$3.0bn (29%) $0.1bn (1%)
Office
$6.1bn (59%)
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1. Represents Charter Hall’s total funds management platform as at 30 June 2013 2. Excludes three residential development projects worth $0.1bn

7

Charter Hall Group / Full year results 30 June 2013

Sector focused investment strategy

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Group overview

Our investment strategy, focusing on core property asset sectors, should endure macroeconomic cycles and generate growing income and capital returns, consistent with the investment appetite of investors in the real estate asset class.

Charter Hall Group property platform by sector

	Portfolio Size	No. of	No. of	Gross income	WALE	Occupancy	Average cap rate
	($bn)	properties	tenants	($m)	(years)	(%)	(%)
Retail	3.0	105	2,272	216	6.7	98.0	8.3
Office	6.1	56	645	595	5.1	96.8	7.9
Industrial	1.1	39	51	98	10.9	99.9	8.1
Total	**10.21 **	**2001 **	2,968	909	6.1	97.4	8.0

Office

Retail

Industrial

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Bankwest Place, Perth, WA (CPOF and partners)

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Secret Harbour Shopping Centre, Rockingham, WA (CQR)

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Volkswagen, Chullora, NSW (CPIF)

1. Excludes three residential development projects worth $0.1bn

8

Charter Hall Group / Full year results 30 June 2013

Expertise across risk/return spectrum

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Group overview

A significant manager of wholesale, listed and retail investor capital

Risk vs. Target Return Profile

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Target Return
Development
20% + $0.3bn
Office
Retail
15 – 17% Industrial
Wholesale Partnerships Wholesale Pooled Diversified
11 – 14% $1.8bn $0.6bn
Listed (CQR) Retail Investor
Funds
$0.2bn
$2.0bn
$0.3bn
$0.9bn $1.3bn
9 – 11% $2.2bn $0.7bn
Risk
Core Core Active Opportunistic
Institutional Investors / Institutional Investors / Institutional Investors /
Pension Funds / Individuals Pension Funds Pension Funds
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• Target return = distribution yield + capital appreciation (change in NTA)

9

Charter Hall Group / Full year results 30 June 2013

Operational Performance

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High proportion of annuity income

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Quality of earnings

Operating earnings[1] of $71.8m, up 12.9% from $63.6m[2 ]

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90% of operating earnings generated 62% of operating earnings generated
from annuity style income from property investments
45.0 (62% property investments, 28% property funds management) Direct property
investment
$39.6m
40.0 7%
Property funds
35.0 $33.4m management
38%
30.0
$27.3m
$24.1m
25.0
FY12
20.0 FY13
15.0
10.0
$6.1m
$4.9m Property funds
5.0
Investment
55%
-
Direct property Property funds Property funds
investment investment management
Property Investments 38% operating
62% operating earnings earnings
$m
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1. Operating Earnings as detailed in note 3b of the Preliminary Financial Report 2. FY12 is stated prior to specific items

11

Charter Hall Group / Full year results 30 June 2013

Property investments total $603m Property investments (Charter Hall Group balance sheet)

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• Charter Hall’s property investments total $603m[1] , up from $530m as at 30 June 2012

• Delivered FY13 operating earnings of $44.5m[1] , 62% of total operating earnings

• Annualised property funds investment yield of 7.5%, up from 6.7%[3 ]

• WALE of 5.6 years and 97% occupancy

Property Investments by Equity Source

Property Investments by Sector

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Listed
17.1%
Direct [2]
9.1%
Retail Funds and
Syndicates
8.2%
Wholesale Pooled
Funds
28.4%
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Wholesale
Partnerships
37.2%
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Industrial
$79m (13%)
Office
$311m (52%)
Retail
$213m (35%)
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1. Includes direct property and investment in property funds, excludes development investments and CIP 2. Includes Direct Retail Fund which is 100% owned by Charter Hall Group as at 30 June 2013 3. Property funds investment yields exclude direct property (DRF)

12

Charter Hall Group / Full year results 30 June 2013

Property investment portfolio Property investments (Charter Hall Group balance sheet)

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	Ownership	Charter Hall	FY13 Charter	Proportion of	Market	Discount	Weighted	Charter Hall
	stake	investment	Hall Investment	Charter Hall	cap rate	rate	average	investment
	30/06/13	30/06/132	income	investment			rental	yield
			30/06/13	portfolio			reviews	30/06/131
				30/06/13			30/06/13
	(%)	($m)	($m)	(%)	(%)	(%)	(%)	(%)
Listed Fund (CQR)	9.2%	103.1	9.1	17.1%	8.3%	9.1%	4.0%4	8.9%
Wholesale Partnership Funds (CHOT, CLP, BP Fund, RP2, KS)	16.5%	224.1	14.0	37.2%	7.8%	9.3%	3.7%	7.6%
Wholesale Pooled Funds (CPOF, CPIF)	12.6%	171.4	11.6	28.4%	7.9%	9.4%	3.8%	6.8%
Retail Investor Funds (CHDPF, PFA, DIF)	3.9%	11.1	0.9	1.8%	8.3%	9.5%	3.7%	8.1%
Funds to be realised (DPF, CHUF)	23.2%	38.2	2.8	6.3%	8.1%	9.4%	3.7%	5.9%
Total/Weighted Average – Property Funds Investment	14.1%	547.8	38.43	90.8%	8.0%	9.3%	3.9%	7.5%
Direct property investments (DRF)	100.0%	55.2	4.9	9.2%	10.3%	11.1%	3.4%	11.7%
Total Property Investments	22.0%	603.0	43.3	100.0%	8.2%	9.5%	3.8%	7.8%

1. Calculated based on FY13 earnings (annualised) generated by CHC equity investment divided by weighted average investment

2. Does not include any funds / mandates / partnerships where CHC has no co-investment

3. Per page 11, Property Funds Investment Operating Earnings = $39.6m. Difference is net interest income of $1.5m less $0.4m trust expenses 4. Australian specialty leases only

13

Charter Hall Group / Full year results 30 June 2013

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Property funds management EBITDA up 14.6% Property funds management

• Property funds management operating earnings of $27.3m[1 ]

• Total revenue equates to 87bps of FUM[2 ] (65bps from annuity and 22bps from non-annuity sources)

Annuity style revenue (75%)

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$M FY13 FY12 Growth
45.0
Revenue 83.5 74.9 11.5%
40.0 37.9 39.1 Net operating expenses (55.0) (50.0) 9.9%
Property funds management EBITDA 28.5 24.9 14.6%
35.0
EBITDA margin on revenue [3] 34.1% 33.1% 100bps
30.0 EBITDA margin on cost [3] 51.8% 49.4% 240bps
25.0
20.0
FY12
15.0
12.1 12.7 FY13
10.5
10.0 8.2 8.8 9.0
6.6
5.5
5.0 2.8 2.5
1.2 1.6
-
Investment Property Management Facilities and Project Leasing Services Development Transaction and Project Leasing
Management Management (excl. project leasing) Management (incl performance fees
CIP)
$M
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1. Per page 11, property funds management earnings = $27.3m. Difference to EBITDA is $1.2m of depreciation expense 2. Based on average FUM

2. FY12 EBITDA margin restated to include CIP

14

Charter Hall Group / Full year results 30 June 2013

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Australian FUM platform growth of 18%

Property funds management

• Group FUM up 16% to $10.3bn at 30 June 2013

• Australian property FUM has increased by $1.5bn over the last year to $9.9bn

• Offshore property FUM has reduced to $0.4bn

Total Group FUM

Australian FUM by Equity Source

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12
$10.7bn
$10.2bn $10.3bn [1 ]
10
$8.9bn
8
6
$9.9bn
4 $3.4bn $7.2bn $8.5bn $8.4bn
2
$3.4bn
0
Jun-09 Jun-10 Jun-11 Jun-12 Jun-13
Australian FUM Offshore FUM
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12
10
$1.7bn
8 $1.5bn $1.5bn $1.8bn
$1.5bn $3.5bn $1.6bn
6 $6.5bn
$3.2bn
$5.4bn
4
$3.6bn
2
$2.5bn
0
Jun-10 Jun-11 Jun-12 Jun-13
Wholesale Listed Retail
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1. Includes CQR Poland portfolio contracted for sale as at 30 June but expected to settle at the end of September 2013.

15

Charter Hall Group / Full year results 30 June 2013

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Secured inflows across the funds platform

Property funds management

• Secured $1.2bn in gross new equity during FY13 from a range of equity sources investing across the funds platform

• A further $179m of gross equity secured since 1 July 2013

	FY12	FY13
	($M)	($M)
Wholesale Pooled Funds	175	147
Wholesale Partnerships	8002	599
Listed Funds	-	142
Direct Funds	53	288(1)
Gross equity secured (Australian FUM)	1,028	1,176
Net equity secured (Australian FUM)3	**1792 **	1,003		4.6x

1. Includes $185m secured as part of the PFA platform

2. Includes Charter Hall Office Trust where $800m of new wholesale equity was secured to replace outgoing listed equity following privatisation of CQO. 3. Net equity secured represents gross equity inflows less equity outflows related to Australian FUM

16

Charter Hall Group / Full year results 30 June 2013

$1.2 billion of gross equity secured

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Property funds management

$164m

Bankwest Place & Bank of Queensland Building New office partnerships

$78m RP2

New retail partnership

$77m $185m Direct Industrial PFA Diversified Fund 1&2 Property Trust Appointed manager & responsible entity

$25m 144 Stirling Street Trust

$132m Charter Hall Retail REIT Placement / UPP / DRP

$119m $91m Core Plus Existing office funds Industrial Fund DRP

$97m Bunnings Portfolio New retail partnership

$198m Core Logistics Partnership New industrial partnership

Notes:

• Represents equity invested and not undrawn equity commitments

• Equity raisings above plus $11m raised by Charter Hall through the Charter Hall DRP total $1,176 gross equity secured on page 16.

17

Charter Hall Group / Full year results 30 June 2013

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Capital recycling continues to progress

Capital management of the Charter Hall investment portfolio

CHC capital recycled ($m) FY12 FY13 Total	CHC capital recycled ($m) FY12 FY13 Total	CHC capital recycled ($m) FY12 FY13 Total
Equity realised
Mentone Showrooms 16 - 16
DPF 14 3 17
Excess CQO special distribution 38 4 42
CHUF - 8 8
CHOF5 - 13 13
DRF - 30 30
Total proceeds realised 68 58	126
CHC capital redeployed
CQR 16 4 20
CHOT - 7 7
PFA - 5 5
RP2 (Bateau Bay) 2 18 20
BP Fund (Bunnings) - 15 15
Core Logistics Partnership - 11 11
DRF minority buyout - 16 16
Keperra Square - 22 22
Other - 1 1
Total Redeployment 18 99 117

We recycle our capital to seed additional high value opportunities for CHC and our clients

• Over the past 2 years, $126m has been realised and $117m redeployed

• Over the next 18 months, a further $112m is targeted for recycling with $48m of asset sales already completed or contracted since year end

CHC capital to be recycled over the next 18 months	$M
Equity to be realised
DRF (net of property debt)	42
CHOF4/5 (includes $5m WorkZone preferred equity)	21
685 La Trobe Street	11
CHUF	30
DPF	8
Total proceeds to be realised (target)	112
Completed or contracted since 1 July 2013 (42% of target)	48

18

Charter Hall Group / Full year results 30 June 2013

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Progressive realisation of specific funds

Capital management

In line with our stated strategy, Charter Hall is progressing the realisation of funds which have reached or are approaching the end of their investment term:

• Total $580m FUM targeted to be exited in over the next 18 months upon realisation of these funds

• Total $101m of CHC’s capital available for redeployment

Non-core fund			Fund size	CHC co-investment	Strategy
	at	30	June 2013 ($m)	at 30 June 2013 ($m)
CHOF’S			348	21	Progressive sale of assets with realisation expected by June 2014
CHUF			116	30	Progressive realisation of investments
DPF			52	8	400 Kent Street and 53 Berry Street sold post balance date with final $8m of industrial assets targeted to be sold during FY14
DRF			42	42	Home HQ Nunawading sold post balance date and Menai Central expected to settle in September 2013
CHIF’S			22	Nil	CHIF4 sold the Bushells Building post balance date facilitating wind-up. CHIF3 and 6 targeted for wind-down
TOTAL			580	101

Note: PSF wound-up during FY13 and post balance date 1MPT unitholders voted to sell interest in No.1 Martin Place to CHOT

19

Charter Hall Group / Full year results 30 June 2013

Financial Performance

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Key financial metrics

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Financial performance

GROUP	FY13	FY12	Change
Statutory profit after tax	$54.8m	$16.7m	228.8%
Operating earnings1	$71.8m	$63.6m	12.9%
Operating earnings per security (OEPS)	23.94cps	21.51cps	11.3%
Distribution per security (DPS)	20.20cps	18.20cps	11.0%
Return on Equity3(NAV basis)	9.8%	8.6%	+120bps
Return on Equity3(NTA basis)	11.2%	9.9%	+130bps
BALANCE SHEET	At 30 June 2013	At 30 June 2012	Change
Funds under management – Total	$10.3bn	$8.9bn	16.2%
Funds under management – Australia	$9.9bn	$8.4bn	18.4%
Total Group assets	$819m	$876m	(6.5%)
NAV per security	$2.45	$2.46	(0.4%)
NTA per security	$2.13	$2.13	0.0%
Balance sheet gearing2	1.9%	1.4%	+50bps
Look through gearing	34.3%	32.2%	+210bps

1. FY12 is stated prior to specific items relating to the net CQO transaction fee, CHOF4 performance fee clawback and restructuring costs which total a net loss of $8.7m. There are no specific items in FY13.

2. Net of cash

3. Return on equity calculated as operating earnings / average NTA or NAV respectively

21

Charter Hall Group / Full year results 30 June 2013

Income statement

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Financial performance by segment

• Operating earnings growth of 12.9%[1] to $71.8m

• Total property investment operating earnings growth of 12.7% to $44.5m

• Direct property investment income is reducing as the strategy to selldown DRF portfolio is progressed

• Strong property funds investment growth of 18.4%

• Property funds management earnings increased by 13.1%

• OEPS growth of 11.3%

• Distribution per security growth of 11.0%

$M	FY13	FY12	Change %
Direct property investment	4.9	6.1	(19.6%)
Property funds investment	39.6	33.4	18.4%
Property funds management	27.3	24.1	13.1%
Operating earnings before specific items2	71.8	63.6	12.9%
Specific items (prior period only)1	-	(8.7)
Operating earnings2	71.8	54.8	31.0%
Non-cash security based benefit expense	(3.0)	(2.3)
Other non-operating items	(14.0)	(35.9)
Statutory profit after tax	54.8	16.7	228.1%
OEPS (cps)	23.94	21.51	11.3%
DPS (cps)	20.20	18.20	11.0%
Payout ratio	84.4%	84.6%

• $14.2m reinvestment into DRP with a 45% participation rate at $3.85 for June 2013 half

• FY12 is stated prior to specific items relating to the net CQO transaction fee, CHOF4 performance fee clawback and restructuring costs which total a net loss of $8.7m. There are no specific items in FY13. 2. Consistent with prior periods, excludes non-cash security based benefit expense (treated as a non-operating item).

22

Charter Hall Group / Full year results 30 June 2013

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Property investment earnings growth of 12.7% Financial performance

• Operating earnings from all property investments up 12.7% to $44.5m

• Existing funds - 3.2% like for like NOI growth, $1.6m net benefit from acquisitions and reduced borrowing costs

• $2.2m contribution from new investments in 2013

• ($2.2m) from wind down of DRF and other sales

• $2.4m reduction in net interest expense resulting from improved working capital debt management, reduction in facility limit and lower base rates

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$2.2m ($2.2m) $2.4m
$1.6m
$1.0m
$44.5m
$39.5m
FY12 Existing funds - like Existing funds - Growth from new Realisation of DRF Reduction in interest FY13
for like NOI growth refinancing, investments and other sales expense
acquisitions
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23

Charter Hall Group / Full year results 30 June 2013

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Property funds management growth of 13.1%

Financial performance

• Property funds management operating earnings up 13.1%

• Revenue growth of 11.5%

• Annuity revenue up 7.0% with $2.7m increase in leasing, and underlying fund management fee growth of $3.6m (9.5%) (excluding impact of the loss of CQO US fees in FY12 of $2.4m)

• Non-annuity revenue up 27.1% driven by increased FUM delivering increased transaction fees

• Property funds management EBITDA margin of 34.1%

• Like for like EBITDA margin excluding restructuring costs up 240bps to 35.5%

$M

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||||||
|---|---|---|---|---|
|$M|FY13|FY12 Growth %|
|Annuity style revenue|62.4|58.3|7.0%|
|Non-annuity style revenue|21.1|16.6|27.1%|
|Total property funds management revenue|83.5|74.9|11.5%|
|Net operating expenses|(53.8)|(50.0)|7.6%|
|Restructuring costs|(1.2)|-|[2 ]|
|Property funds management EBITDA|28.5|24.9|14.5%|
|Depreciation|(1.2)|(0.7)|63.6%|
|Property funds management operating earnings|27.3|24.1|13.1%|
|EBITDA margin on revenue - headline|34.1%|33.1%|+100bps|
|EBITDA margin on revenue - like for like|[1 ]|35.5%|33.1%|+240bps|
|Revenue / Average FUM|87bps|77bps|
|Net Operating Expenses / Average FUM|57bps|51bps|

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1. Excludes $1.2m restructuring costs incurred in FY13

2. Restructuring costs in FY12 were treated as a specific item

24

Charter Hall Group / Full year results 30 June 2013

Operating cashflow

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Financial performance

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($7.8m)
$3.0m ($2.0m) $1.3m ($14.2m)
$71.8m
$66.3m
$60.7m
$52.1m
Operating Change in Change in Earnings vs Depreciation Operating CHOF4 Operating Distribution
Earnings receivables payables distribution Cashflow performance fee Cashflow (per
received clawback statutory
accounts)
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25

Charter Hall Group / Full year results 30 June 2013

Balance sheet

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Financial position

Balance sheet ($m) 30-Jun-13 30-Jun-12 Cash 12.2 39.3 Property investments 603.0 614.0 Development investments 59.7 66.7 Other tangible assets 47.8 56.9 Intangibles 96.1 98.7 Total assets 818.8 875.6 Borrowings 27.5 51.5 Other liabilities 51.1 67.8 Total liabilities 78.5 119.2 Net assets attributable to non-controlling interest - (27.4) Total equity post non-controlling interest 740.3 728.9 Shares on issue 302,262 296,168 Net tangible assets per security 2.13 2.13 NAV per security 2.45 2.46 Balance sheet gearing (net of cash) 1.9% 1.5% Look-through gearing1 34.3% 32.2% Available liquidity2($m) 65.2 106.3 2.00 2.02 2.04 2.06 2.08 2.10 2.12 2.14 2.16 2.18
	$2.13 3.6c (1.0c) (1.7c) 1.2c (2.1c) $2.13
	NTA - Jun 12 Operating surplus Fair value adjustments PFA management rights Security issuance Other NTA - Jun 13 3

1. Calculated by incorporating Charter Hall’s proportional share of total assets (net of cash) and debt (net of cash) of the funds in which it co-invests

2. Available liquidity is defined as cash plus undrawn debt less bank guarantees held for AFSL licence requirements

3. PFA management rights (intangible) acquired August 2012 for $5.2m

26

Charter Hall Group / Full year results 30 June 2013

Group debt platform

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Balance Sheet Management

• Across fund platform, $0.9bn of new and refinanced debt in FY13 with a further $1.3bn new / refinanced debt since 30 June 2013

• Weighted average cost of debt¹ of 5.7%, down from 6.2% at 30 June 2012

• Weighted average maturity[2] of 3.2 years, up from 3.1 years at 30 June 2012

• $4.2bn of drawn debt across platform, with a further $0.9bn available undrawn capacity from existing facilities³

• CHC balance sheet gearing is 1.7%, and look through gearing is 34.3%

• CHC $75 million debt facility extended to August 2015 with a 100bps reduction in pricing

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----- Start of picture text -----

Gearing 42% 42%
40%
37%
34% 34% 34%
33% [4 ] 36% [4 ]
Balance Sheet Gearing 33% [4 ]
Look-through Gearing
2.1 years² 3.3 years¹ 4.4 years¹ 1.6 years¹
0%
CHC CQR Wholesale Unlisted Funds Retail Investor Funds
2.1 years 3.7 years [2 ] 4.4years [2 ] 1.6 years [2 ]
----- End of picture text -----

1. Cost of debt is on a look through basis and includes debt facilities refinanced in July and August 2013

2. Debt duration is on a look through basis based on facility limits and includes debt facilities refinanced in July and August 2013 3. Includes debt facilities refinanced in July and August 2013

3. Gearing factors in post balance date CQR Poland sale and debt repayment forecast in September 2013

Charter Hall Group / Full year results 30 June 2013

27

Security based benefits expense

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Change in reporting treatment effective FY14

• Security based benefit expense has been treated as non-operating item in prior years and FY13

• From FY14, security based benefits expense will be included in operating earnings

• • No cash impact

• Payout ratio will be increased to maintain distribution profile

• • Will apply from FY14 – A proforma FY13 operating earnings including the security based benefits expense would be 22.9cps

• – FY13 distribution remains unchanged but payout ratio increases to 88%

	$M	FY13	FY13
		Actual	Proforma
	Total Revenue	131.1	131.1
	Net Operating Expenses	(55.7)	(55.7)
	Non-cash security based benefit expense		(3.0)
	EBITDA	75.4	72.4
	Net Interest Expense, depreciation + NCI	(3.6)	(3.6)
	Operating earnings	71.8	68.8
	Non-cash security based benefits expense1	(3.0)	-
	Other non-operating items	(14.0)	(14.0)
	Statutory profit	54.8	54.8
	OEPS (cps)	23.9	22.9
	DPS (cps)	20.2	20.2
	**Operating cash flow per security1 **	22.4	22.4
	Payout ratio	84.4%	88.2%

1. Non-cash security-based benefits expense is independently fair valued at allocation date, based on a Monte Carlo simulation basis per AASB 2. The fair value calculated multiplied by the number of PROP securities issued to executives, determines the accounting expense.

2. Operating cashflow excluding CHOF4 performance fee clawback payment in June 2013 (treated as a specific item in FY12)

28

Charter Hall Group / Full year results 30 June 2013

Strategy, Outlook and Guidance

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Delivering on FY13 strategic objectives

Strategy

FY13 objectives

FY13 achievements

ACCESS DEPLOY MANAGE

INVEST

• CPIF ranks as 1[st] and CPOF 2[nd] best

• • performing wholesale fund in their sector Continue to achieve the investment objectives for year to 30 June 2013[1 ]

• of our investors • ROE(NTA basis) up from 9.9% to 11.2%

• • • Enhance return on equity 18% growth in Australian FUM • Secured $1.2bn of gross new equity

• • Source equity to invest into core real estate flows sectors targeting growth in the Australian FUM • 6 new partnerships and funds added

• platform by 6-10% pa • $58m of capital realised and $99m of

• • Realise and redeploy a further $100m of capital invested capital in property and development • Property funds investment yield up from

• investments over the next 2 years 6.7% to 7.5% (12% growth)

• • Drive further growth in property investment • Property funds investment portfolio portfolio earnings and capital value WALE of 5.6 years •

• • 302,000sqm of leasing in FY13 Diversify sources of debt funding for the managed funds platform • Refinanced $0.9bn of debt

• •

• • Operating EPS up 11.3% to 23.94cps Continue to capitalise on a scalable operating platform to service FUM growth • Property funds management margin up 240bps on a like for like basis

• Source: IPD/Mercer wholesale pooled property funds index (multi-asset funds).

Charter Hall Group / Full year results 30 June 2013

30

FY14 strategic objectives

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Strategy

FY14 objectives

~~ACCESS~~

• Continue to achieve the investment objectives of our investors

• Enhance return on equity

DEPLOY

• Source equity to invest into core real estate sectors targeting growth in the Australian FUM platform of 6-10% pa

• Realise a further $112m of capital in property and development investments and redeploy over the next 18 months

• Drive further growth in property investment portfolio earnings and capital value

MANAGE

• Diversify sources of debt funding for the managed funds platform

• Continue to capitalise on a scalable operating platform to service FUM growth

~~INVEST~~

• Reweight the investment portfolio increasing the proportion of retail and industrial investments

31

Charter Hall Group / Full year results 30 June 2013

FY14 transactional activity to date

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Activity since 30 June 2013

Since balance date Charter Hall has:

• Completed the CPIF $150m equity raising target

• Participated in the $103m CHOT equity raising with Charter Hall Group investing a further $15m

• CHOT acquired the remaining 50% interest in No.1 Martin Place, Sydney

• Completed or contracted asset sales realising $48m of Charter Hall equity including the sale of Home HQ Nunawading for $48m[1 ] on behalf of joint owners DRF and CQR

• Refinanced $1.3bn of debt

• 100% share before repayment of property debt, net CHC proceeds $10m.

32

Charter Hall Group / Full year results 30 June 2013

Well positioned to capture deal flow

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FY14 earnings growth drivers

• High property portfolio occupancy with average 3.9% rental reviews supporting stable property income growth from property funds investment portfolio

• Appetite from all targeted equity sources for Australian real estate

• Renewed appetite from retail investors for quality long WALE assets

• Reducing debt costs and disciplined capital management

• Recycling capital into higher economic yield investments with a focus on earnings accretion

33

Charter Hall Group / Full year results 30 June 2013

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Solid earnings growth expected in FY14

FY14 earnings guidance

Barring unexpected events, we forecast:

• FY14 operating earnings growth of approximately 7%[1 ]

• The distribution payout ratio is expected to be between 85% and 95% of operating earnings per security[2 ]

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1. This growth guidance will apply to both the existing operating earnings measure and amended operating earnings (including security based benefit expense)

2. Payout ratio has increased from 80-90% in FY13, due to a change in accounting for security based benefit expense effective FY14 (refer slide 28). Expected FY14 operating cash flow and distributions are not impacted by this non-cash item.

34

Charter Hall Group / Full year results 30 June 2013

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Additional information

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Additional information

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Section	Section	Slide
1	Group overview	38
2	Activity by sector since 30 June 2012	39
3	Property funds management platform	42
4	Property investment portfolio	44
5	Fund updates	46
6	Financial information	51
7	Capital management and funding	55
9	Glossary	58

37

Charter Hall Group / Full year results 30 June 2013

Charter Hall Group

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Group overview

Property Investment

$603m co-investments / $44.5m operating earnings (62% total Group OEPS)

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OFFICE
$311m
(52% of portfolio)
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RETAIL
$213m
(35% of portfolio)
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INDUSTRIAL
$79m
(13% of portfolio)
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Property Funds Management $10.3bn FUM / $27.3m operating earnings (38% total Group OEPS)

Access

Deploy

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11% [1% ]
16%
21%
29%
59%
Listed investors
Wholesale investors
63%
Retail investors
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Office
Retail
Industrial
Residential
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Manage

• Investment management

• Asset management

• Property management

• Development management

• Leasing services

• Transaction services

• Capital management

38

Charter Hall Group / Full year results 30 June 2013

Office

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Activity since 30 June 2012

• Secured a net $900m of Australian office properties on behalf of fund investors and partners, increasing our office portfolio by 20%

• Established two new partnerships between CPOF and institutional investors which resulted in the acquisition of Bankwest Place, Perth and the acquisition of the new Bank of Queensland headquarters on Brisbane CBD fringe

• Active leasing across the office portfolio having signed new leases and renewals over 108,000sqm most recently securing DLA Piper for 6,000sqm at No.1 Martin Place, Sydney and Citibank renewed for 18,500sqm at 2 Park Street, Sydney

• Completed raising for the $55m 144 Stirling Street Trust and appointed manager of the $422m PFA Diversified Property Trust

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Bankwest Place, Perth, WA

• CPOF ranks as the 2[nd] highest performing wholesale office fund in Australia over the year to 30 June 2013[1 ] and 130 Stirling Street Trust ranked as the 3[rd] best performing syndicate over 3 years to 30 June 2013[1] .

• Source: IPD/Mercer wholesale pooled property funds index (multi-asset funds).

39

Charter Hall Group / Full year results 30 June 2013

Retail

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Activity since 30 June 2012

• Established three new wholesale partnerships to

• separately acquire Bateau Bay Square for $164m, a $235m Bunnings portfolio and a retail centre in Keperra, Brisbane for $63m - CHC invested $52m alongside its institutional partners

• In October last year, CQR raised $119m equity to fund the acquisition of three assets for $101m and more recently acquired Secret Harbour Shopping Centre for $33m

• In line with its stated strategy, CQR contracted to sell its Polish portfolio for €174.5m expected to be settled at the end of September, and together with DRF sold Home HQ Nunawading in Victoria for $48m

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Bateau Bay Square, NSW

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Secret Harbour Shopping Centre, WA

40

Charter Hall Group / Full year results 30 June 2013

Industrial

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Activity since 30 June 2012

• Secured a net $256m of long WALE, strong covenant properties and land banks on behalf of fund investors and partners

• Established the $400m Core Logistics Partnership with two Australian institutional investors which has now acquired 7 assets with a $232m on-completion value

• CPIF closed its equity raising securing its $150m target providing capacity to grow the portfolio to approximately $850m once fully invested

• CPIF ranks as #1 performing wholesale industrial fund in Australia over the year to 30 June 2013[1 ]

• DIF1 equity raising closed oversubscribed at $120m and DIF2 equity raising launched in December 2012 progressing well having now raised $81m of the $120m target

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AMCOR logistics facility, Scoresby, VIC

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Metcash Distribution Centre, Canning Vale, WA

1. Source: IPD / Mercer wholesale pooled property funds index (industrial - total funds) 30 June 2013.

41

Charter Hall managed funds

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As at 30 June 2013

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----- Start of picture text -----

Listed fund Wholesale pooled funds and partnerships Retail investor funds
$2.2bn $5.1bn $1.3bn
($103m co-invested) ($396m co-invested) ($11m co-invested)
CHDPF PFA
CQR [1 ] Partnerships Pooled
$0.5bn $0.4bn
$2.2bn $2.7bn $2.4bn
($11m / 4%) ($0.2m / 0%)
($103m / 9%)
CHOT RP2 CPOF
$2.0bn (BB Square) $1.8bn DIF1&2
$0.2bn CHIF 7&8 [3 ]
($159m / 15%) ($115m / 12%) $0.3bn
($18m / 20%) $0.1bn
($0.2m / 0%)
BP Fund
CLP CPIF
(Bunnings)
$0.2bn $0.6bn
Mandates [4 ] $0.2bn
($11m, 5.0%) ($57m / 13%)
($14m / 13%)
$1.0bn
Keperra
Square
Wholesale $0.1bn
mandates ($22m / 36%)
$1.0bn
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Funds being realised $0.7bn ($121m equity to be realised)

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----- Start of picture text -----

CHOF4 [1 ] CHOF5 [1 ]
$0.1bn $0.3bn
($1m / 3%) ($17m / 15%)
CHIF 3, 6 DPF
& 1MPT [2 ] $0.1bn
$0.2bn ($20m/20%)
DRF
CHUF
$0.1bn $42m
($30m/24%) ($42m / 100%)
685 LaTrobe
$11m
($11m / 50%)
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1. FUM definition includes on completion value for development assets

2. Includes 1MPT which was wound-up post balance date

3. 130 Stirling Street Trust (CHIF7) and 144 Stirling Street Trust (CHIF8)

4. Includes interest in 275 George St (50%), Bankwest Place (67%) (all of which are co-owned with CPOF); 50% of RP1 (co-owned with CQR); Riverside Centre and other assets

42

Charter Hall Group / Full year results 30 June 2013

Charter Hall managed funds

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As at 30 June 2013

As at 30 June 2013
	Total	Sector	Equity	No. of	Lettable	Occupancy	Weighted	WALE	Weighted
	property		Source	properties	area		average rent	(by income	average cap
	assets				(sqm)		review	in years)	rate
	($m)
Top 5 Managed Funds
CQR1	2,175	Retail	Listed	87	668,395	97%	4.0%2	6.4	8.3%
CHOT	2,032	Office	Wholesale	18	340,430	97%	3.8%	4.4	7.7%
CPOF	1,793	Office	Wholesale	15	287,275	97%	4.0%	5.2	7.8%
CPIF	560	Industrial	Wholesale	21	400,410	99%	3.2%	9.6	8.3%
CHDPF	491	Office	Retail	9	103,519	95%	3.7%	4.3	8.3%
Other Funds
Wholesale partnerships (RP2, BP Fund, CLP, KS)	665	Retail/Industrial	Wholesale	18	339,946	99%	3.5%	7.7	7.9%
Retail investor funds (DIF1, DIF2, PFA, 1MPT, CHIF 7&8)	988	Office/Retail/ Industrial	Retail	21	424,067	98%	3.7%	6.0	8.3%
3rdparty mandates3	1,038	Office/Retail	Wholesale	12	128,094	99%	3.6%	9.0	7.6%
Sub-total / Weighted average	9,742			190	2,692,135	97%	3.8%	6.1	8.0%
Funds being realised (CHIF 3&6; DPF, CHUF, CHOF 4&5)	514	Residential/Office/ Retail	-	11	35,970	100%	3.5%	6.0	8.3%
Direct property and other (685 La Trobe,DRF)	66	Office/Retail	Direct	2	22,239	98%	3.7%	4.3	8.3%
Total / Weighted average	10,323			203	2,750,323	97%	3.8%	6.0	8.0%

1. Includes offshore portfolio

2. Based on Australian specialty leases only

3. Includes interest in 275 George St (50%), BankWest Place (67%) and Brisbane Square (67%), co-owned with CPOF; 50% of RP1, co-owned with CQR; Riverside Centre and other assets. No. of properties excludes properties already in CPOF and CQR

43

Charter Hall Group / Full year results 30 June 2013

Property investment portfolio

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As at 30 June 2013

	Ownership	Charter Hall	FY13	Proportion of	Market	Discount	Minimum	FY13	FY12
	stake	investment	Charter Hall	Charter Hall	cap rate	rate	rental	Charter Hall	Charter Hall
			investment	investment			reviews	investment	investment
			income	portfolio				yield	yield
	(%)	($m)	($m)	(%)	(%)	(%)	(%)	(%)	(%)
Listed Fund		103.1	9.1	17.1
Charter Hall Retail REIT (CQR)	9.2	103.1	9.1	17.1	8.3	9.1	4.0	8.9	8.3
Wholesale Partnership Funds		224.1	14.0	37.2
Charter Hall Office Trust (CHOT)	14.5	159.0	11.8	26.4	7.7	9.2	3.8	7.7	6.5
Retail Partnership No. 2 – Bateau Bay (RP2)	20.0	17.7	1.3	2.9	8.0	9.5	3.1	7.7	n/a
BP Fund (Bunnings)	13.0	14.3	0.6	2.4	7.6	9.5	3.0	6.8	n/a
Core Logistics Partnership (CLP)	5.3	10.8	0.4	1.8	8.1	10.3	4.0	6.1	n/a
Keperra Square (KS)	35.6	22.42	0.0	3.7	7.8	9.5	4.0	n/a	n/a
Wholesale Pooled Funds		171.4	11.6	28.4
Core Plus Office Fund (CPOF)	12.3	114.7	7.7	19.0	7.8	9.3	4.0	6.7	6.3
Core Plus Industrial Fund (CPIF)	13.1	56.7	3.9	9.4	8.3	9.8	3.2	7.0	6.2
Retail Investor Funds		11.1	0.9	1.8
Charter Hall Direct Property Fund (CHDPF)	4.0	10.7	0.9	1.8	8.3	9.5	3.7	8.1	6.8
Direct Industrial Fund (DIF)	0.2	0.2	0.0	0.0	8.0	9.8	3.2	8.0	n/a
PFA Diversified Property Trust (PFA)	0.1	0.2	0.0	0.0	9.2	9.8	3.5	7.4	n/a
Funds being realised		38.2	2.8	6.3
Diversified Property Fund (DPF)	19.6	8.1	0.7	1.3	8.4	9.4	3.6	6.8	6.4
Charter Hall Umbrella Fund (CHUF)	24.2	30.1	2.2	5.0	8.0	9.4	3.7	5.7	5.4
Investment Trust costs (CHPT expenses)			(0.4)
Total/ Weighted Average: Property Funds Investment	14.1	547.8	38.0	90.8	8.0	9.3	3.9	7.5	6.7
Direct property investments (DRF)	100.0	55.2	4.9	9.2	10.3	11.1	3.4	11.7	9.9
Total/ Weighted Average: Property Investments	22.0	**603.01 **	42.9	100.0	8.2	9.5	3.8	7.8	7.1

1. Total property investments excludes development investments (co-investments in CHOF4/5, 685 La Trobe and CIP)

2. Includes $21.2m preferred equity notes (PENS) and $1.2m equity (10%) Charter Hall Group / Full year results 30 June 2013

44

Property investment portfolio metrics

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Property investment

Lease expiry profile[1 ] (30 June 2013)

Top 10 tenants (30 June 2013)

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----- Start of picture text -----

45%
41.2%
40%
35%
30%
25%
20%
16.4%
15%
12.2%
10.3%
10% 8.6%
8.3%
5%
2.9%
0%
Vacant FY14 FY15 FY16 FY17 FY18 FY19+
----- End of picture text -----

Tenant	% Portfolio leased
	(By gross income)
Australian Governments	8.6
Woolworths	5.9
Telstra	5.6
Wesfarmers	5.6
Macquarie Group	3.0
Westpac Group	2.5
Metcash	1.9
BHP Billiton	1.8
Citigroup	1.6
Commonwealth Bank	1.5
Total	37.8

1. Charter Hall Group’s position based on the lease expiry profile and investment exposure in each fund / partnership (weighted on a passing gross income basis)

45

Charter Hall Group / Full year results 30 June 2013

Core Plus Office Fund (CPOF)

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Key events during FY13

• CPOF outperforms the IPD/Mercer Wholesale Property Funds Index (total office funds) over 1, 3 and 5 year periods to 30 Jun 2013

• Acquired 9 Castlereagh Street (21,000sqm) in Feb 2013 for $172.5m

• Acquisition of a 33% interest of Bank West Place Perth for $154m (33%) as part of a larger transaction involving the expansion of the joint ownership arrangements of the Brisbane Square Wholesale Fund (BSWF)

• Acquisition of 50% interest in 24,000sqm development in Newstead, Brisbane that is 55% precommitted to Bank of Queensland , forecast completion value of $88m (50%)

• Independent valuation of all Fund assets delivered 2.1% like for like growth across the portfolio for financial year 2013

• Re-leased 11,748m2 of space at 11 Exhibition Street to Bupa for a new ten year term, which was secured 18 months ahead of lease expiry

• Progressed value enhancement strategy with planning consent obtained for a new building at 333 George St, Sydney and a significant expansion and upgrade of 570 Bourke St, Melbourne

Portfolio characteristics Key metrics	Portfolio characteristics Key metrics
Gross property assets	$1.8 billion
Totaldebt	$826 million
Gearing (look-through)	45.2%
Numberofassets	15
Occupancy1	97%
Weighted averagelease expiry1	5.2years
CBDassets1	92%
Prime grade assets	89%
Weighted average caprate	7.8%
Weighted average rent review (next12 months)	4.0%
Rent reviews (FY13)	81% fixed, 18% CPI,1%market
Charter Hallco-investment	$114.7m / 12.3%

1. Core assets

Source: IPD/Mercer Wholesale Pooled Property Index (total funds – office)

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----- Start of picture text -----

CPOF debt expiry profile (by facility limit)
600
500
400
300
200
100
0
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20+
----- End of picture text -----

46

Charter Hall Group / Full year results 30 June 2013

Core Plus Industrial Fund (CPIF)

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Key events during FY13

• Outperformed the Industrial component of the IPD/Mercer Wholesale Property Funds Index (total funds) over all time periods to 30 June 2013. (+1.4% pa excess return over 12mths)

• The fund secured $119m of the $150m equity target for its 2013 capital raising providing capacity to grow to $850m once fully invested. The balance was committed post balance date.

• Acquisition of 15 Huntingwood Dr, Huntingwood for $16.2m, leased to Danks for 10 years

• Management lodged a development application to develop 19,000 sqm multi-user estate on its 3.4ha parcel of land at 29 Faisal Hatia Way Berrinba Queensland

• CPIF acquired a 45,000sqm strategically located site at 80 Canberra Street, Hemnant in Queensland for $13m and finalised a new 10 year lease agreement, within three months of the acquisition, lifting the value by 20%

Portfolio characteristics Key metrics	Portfolio characteristics Key metrics
Grosspropertyassets	$560 million
Total debt	$58 million
Gearing (look-through)	9.0%
Number of assets	21
Occupancy	99.5%
Weighted average lease expiry	9.6years
Core assets	95%
Logistics assets	93%
Weighted average caprate	8.3%
Weighted average rent review (next 12 months)	3.2%
Charter Hall co-investment	$56.7m / 13.1%

• Secured national logistics company Northline for a new 16,500sqm logistics facility which will anchor stage 1 of its $80m Smithfield development

CPIF debit facility expiry profile (by facility limit)

Source: IPD/Mercer Wholesale Pooled Property Index (total funds – industrial)

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160
140
120
100
80
60
40
20
0
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20+
$m
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47

Charter Hall Group / Full year results 30 June 2013

Charter Hall Office Trust (CHOT)

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Key events during FY13

• Portfolio occupancy is steady at 97% with a WALE of 4.4 years

• Total leasing of 32,814sqm during FY13 with renewal of Citibank for 18,500sqm at 2 Park Street, Sydney and 6,000sqm new lease to DLA Piper at 1 Martin Place, Sydney

• Approval was granted by Martin Place Trust joint venture unitholders for CHOT to acquire the remaining 50% of No.1 Martin Place (settled 9th August)

• $103m equity raising in July 2013 from existing investors (pro-rata)

• An additional $200m debt facility secured in July 2013 with remaining weighted term to maturity of 3.1 years (across three tranches)

• Top tenants include Australian Governments, Macquarie Group, Telstra, Citigroup, Aurizon, Allianz and Wilson Parking

Portfolio characteristics Key metrics Gross property assets $2.0 billion Total debt $961 million Gearing (look-through) 44.3% Number of assets 18 Occupancy 97% Weighted average lease expiry 4.4 years CBD assets 77% Prime grade assets 95% Weighted average cap rate 7.7% Weighted average rent review (next 12 months) 3.8% Charter Hall co-investment $159.0m / 14.5%	Portfolio characteristics Key metrics Gross property assets $2.0 billion Total debt $961 million Gearing (look-through) 44.3% Number of assets 18 Occupancy 97% Weighted average lease expiry 4.4 years CBD assets 77% Prime grade assets 95% Weighted average cap rate 7.7% Weighted average rent review (next 12 months) 3.8% Charter Hall co-investment $159.0m / 14.5%
Gross property assets	$2.0 billion
Total debt	$961 million
Gearing (look-through)	44.3%
Number of assets	18
Occupancy	97%
Weighted average lease expiry	4.4 years
CBD assets	77%
Prime grade assets	95%
Weighted average cap rate	7.7%
Weighted average rent review (next 12 months)	3.8%
Charter Hall co-investment	$159.0m / 14.5%

CHOT debt expiry profile (by facility limit)

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$600 m
$500 m
$400 m
$300 m
$200 m
$100 m
$0 m
FY14 FY15 FY16 FY17 FY18 FY19
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Charter Hall Group / Full year results 30 June 2013

Wholesale Partnerships and Mandates[1 ]

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Key events during FY13

• Retail Partnership No.2 – Acquired Bateau Bay Square in Bateau Bay, Central Coast NSW for $164m in August 2012, reflecting an 8% cap rate (20% CHC, 80% global institutional investor). The asset is a 29,162 square metre modern sub-regional shopping centre anchored by Woolworths, Coles, Kmart and Aldi.

• Bunnings Partnership (BP Fund) – Acquired $235m portfolio of 10 Bunnings properties (13% CHC, 87% Australian Superannuation Fund).

• Core Logistics Partnership (CLP) – Established a $400m wholesale core industrial partnership with two Australian institutional investors. Since establishment acquired a total of 6 properties (including post balance date transactions) with 100% occupancy and WALE of 12.2 years. On completion of the contracted new building projects, CLP will have a portfolio value of approximately $232 million before further acquisitions.

• Keperra Square Fund (KS) – Established new partnership which acquired Keperra Square in Brisbane for $62.9m, reflecting a cap rate of 7.75%. Keperra Square is a 17,000 sqm retail centre anchored by Woolworths and Aldi located on a 65,000 sqm site with expansion potential.

• Other mandates include the acquisition of the Bank of Queensland building in Newstead, Brisbane and Bankwest Place/ Raine Square complex, Perth.

Portfolio characteristics Key metrics	Portfolio characteristics Key metrics
Charter Hall partnerships Gross AUM 30 June 2013	$0.6 billion
Charter Hall external mandates Gross AUM 30 June 2013	$1.0 billion
Total undrawn equitycommitments	$83.5 million
Number of assets	18
Number ofpartnerships/mandates	6
Charter Hall’spartnershipco-investments:	$65.2 million
- Core Logistics Partnership	$10.8m / 5.3%
- RP2(Bateau BaySquare)	$17.7m / 20.0%
- BP Fund(Bunnings)	$14.3m / 13.0%
- Keperra Square	$22.3m / 35.6%

Wholesale Partnerships debt expiry profile (by facility limit)

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250
200
150
100
50
0
FY14 FY15 FY16 FY17 FY18
RP2 BP Fund CLP Keperra Square
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Charter Hall Group / Full year results 30 June 2013

Charter Hall Retail REIT (CQR)

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Key events during FY13

• Successfully raised $119 million of new equity for accretive transactions, the first S&P ASX A-REIT 200 stock to raise growth equity in several years above the value of its net tangible assets.

• Acquired three sub-regional shopping centres for $101m at an average yield of 9.6%

• Significantly progressed the REIT’s redevelopment pipeline with the $62m Gowrie St Mall redevelopment in Singleton opened on 20 August 2013

• Sold two non-core household retail assets for combined value of $67.8 million, one post balance date

• Sold its interest in its last United States joint venture entity with Regency Centres for a gross sale price of US$49m

• Entered into a conditional contract for the sale of the Polish portfolio for a gross sale price of €174.5m with settlement expected September 2013

• Refinanced existing corporate CQR facility in July 2013 increasing syndicated facility to $425m for 5 years at reduced pricing

• Australian portfolio increased to 97% of the REIT’s NTA, post completion of Polish sale. Post balance date, acquired Secret Harbour shopping centre and adjoining vacant land south of Rockingham WA for $33.2m.

• Represents CQR’s Australian grocery anchored portfolio only

• Post balance date initiatives

Portfolio characteristics1 Key metrics	Portfolio characteristics1 Key metrics
Grosspropertyassets	$1.7 billion
Total debt	$600m
Australian Balance Sheet Gearing	29.7%
Total number of assets	74
Occupancy	98%
Anchor WALE	10.7
Weighted average caprate	8.2%
Like for like NOIgrowth	2.8%
Weighted averaged rent review (next 12 months)	4.0%
Charter Hall co-investment	$103.1m / 9.2%

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CQR debt expiry profile
400
300
200
100
0
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20+
A$ CMBS Multi-Currency bank debt
Other A$ bank debt EUR bank debt
US$ property level debt (blank)
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Charter Hall Group / Full year results 30 June 2013

Detailed operating earnings

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	FY13	FY12	Variance	%
	($000s)	($000s)	($000s)
Direct Property Investment
Direct Property Investment Income	9,101	13,946	(4,845)	-34.7%
DRF interest expense	(2,289)	(4,789)	2,500	-52.2%
Non-controlling interest	(1,613)	(2,544)	931	-36.6%
Less: Operating Costs	(262)	(566)	304	-53.6%
Operating Earnings: Direct Property Investment	4,936	6,047	(1,111)	-18.4%
Property Funds Investment
Property Funds Investment Income	38,468	34,714	3,754	10.8%
Net Interest Income / (Expense)	1,486	(887)	2,373	-267.5%
Total Investment Income	39,954	33,827	6,127	18.1%
Less Operating Costs	(413)	(423)	10	-2.3%
Operating Earnings: Property Funds Investment	39,541	33,404	6,137	18.4%
Property Funds Management
Annuity FM Income	62,463	58,366	4,097	7.0%
Non-Annuity FM Income	21,043	16,534	4,509	27.3%
Funds Management Income	83,505	74,900	8,605	11.5%
Net Operating Expenses	(55,011)	(50,039)	(4,972)	9.9%
Depreciation	(1,186)	(725)	(461)	63.6%
Operating Earnings: Property Funds Management	27,308	24,136	3,172	13.1%
Group Operating Earnings	71,785	63,587	8,198	12.9%

1. Operating earnings as detailed in Note 3(b) of the Preliminary Financial Report

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Charter Hall Group / Full year results 30 June 2013

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Property funds management operating earnings

	FY13	FY12	Variance	%
	($000s)	($000s)	($000s)
Annuity Style Revenue
Fund management fees	39,123	37,932	1,191	3.1%
Property management fees	12,699	12,094	605	5.0%
Leasing fees (non-project)	8,154	5,533	2,621	47.4%
Facilities and Project Management fees	2,487	2,807	(320)	(11.4%)
Total Annuity Style Revenue	62,346	58,366	4,097	7.0%
Non-Annuity Style Revenue
Development Management fees	7,191	7,270	(79)	(1.1%)
Transaction and performance fees	10,472	6,551	3,921	59.9%
Project leasing fees	1,595	1,169	426	36.4%
CIP	1,784	1,544	240	15.5%
Total Non-Annuity Style Revenue	21,043	16,534	4,509	27.3%
Total funds management revenue	83,505	74,900	8,605	11.5%
Net Operating Expenses
Employee costs	(58,504)	(53,107)	(5,397)	10.2%2
Restructuring costs	(1,192)	-1	(1,192)	n/a
Non-employee costs	(11,889)	(9,328)	(2,561)	27.5%
Recoveries	16,573	12,396	4,177	33.7%
Net Operating Expenses	(55,011)	(50,039)	(4,972)	9.9%
Depreciation	(1,186)	(725)	(461)	63.6%
Operating Earnings: Property Funds Management	27,308	24,136	3,172	13.1%

1. Restructuring costs in FY12 were treated as a specific item

2. Employee costs grew as a result of an increase in headcount combined with remuneration reviews

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Charter Hall Group / Full year results 30 June 2013

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Reconciliation of operating earnings to statutory profit after tax

	FY13	FY12
	$000s	$000s
Operating earnings before specific items	71,785	63,586
Specific items1	-	(8,741)
Operating earnings	71,785	54,845
Non-cash security-based benefits expense	(3,035)	(2,338)
Fair value adjustments on derivatives	1,472	(9,933)
Fair value adjustment on investments and property, including re-measurement gains	(3,615)	(2,034)
Amortisation of management rights	(7,838)	(1,307)
Transfer from reserves of cumulative FX losses on disposal of foreign investments	(484)	(12,176)
Loss on disposal of investments, property and derivatives	(953)	(890)
Inventory write-down	-	(5,814)
Other2	(2,489)	(3,675)
Statutory profit after tax attributable to stapled securityholders	54,842	16,678

1. Specific items relate to the net CQO transaction fee, CHOF4 performance fee clawback and restructuring costs which total a net loss of $8.7m 2. Includes non-operating movements in equity accounted investments, amortisation charges and income taxes

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Charter Hall Group / Full year results 30 June 2013

Funds under management growth

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$1.0bn ($0.6bn)
$1.1bn ($0.4bn)
$0.1bn
$0.2bn
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	$0.2bn
								$10.3bn
				$9.8bn
$8.9bn
Jun-12	Revaluations	Acquisitions	Disposals	Dec-12	Revaluations	Acquisitions	Disposals	Jun-13
			FY10	FY11	FY12	1HY13	FY13	CAGR
			($BN)	($BN)	($BN)	($BN)	($BN)	(%)
Australia FUM
(excluding Development Funds)			6.6	7.6	7.8	9.0	9.6	13.7%
Development FUM			0.6	0.9	0.6	0.4	0.3	(20.6%)
Total Australian FUM			7.2	8.5	8.4	9.4	9.9	11.6%
Off-shore			3.0	2.2	0.5	0.4	0.4	(53.6%)
Total FUM			10.2	10.7	8.9	9.8	10.3	0.3%

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Charter Hall Group / Full year results 30 June 2013

Property funds debt programmes

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($M)	TOP 5 MANAGED FUNDS OTHER FUNDS CHC 1 CQR CHOT CPOF CPIF CHDPF WHOLESALE PARTNERSHIPS (EX CHOT) RETAIL INVESTOR FUNDS	TOP 5 MANAGED FUNDS OTHER FUNDS CHC 1 CQR CHOT CPOF CPIF CHDPF WHOLESALE PARTNERSHIPS (EX CHOT) RETAIL INVESTOR FUNDS
Asset values2	819 1,881 2,088 1,762 570 518	1,923 1,365
Net debt drawn2	14 680 926 806 51 242	884 531
CHC Ownership %	9% 15% 12% 13% 4%
Debt duration³ (years)	2.14 3.7 3.1 4.3 2.1 2.2	6.0 1.6
Gearing
Balance sheet	2% 33% 48% 39% 1% 47%	46% 39%
Look-through	34% 36% 44% 45% 9% 47%	46% 39%

1. CHC figures on a balance sheet basis and includes the consolidation of DRF.

2. Total look through assets and debt values shown net of cash as per the 30 June 2013 financial statements. CQR factors in post balance date Poland sale and debt repayment forecast in September 2013 3. Duration calculated on a weighted average basis and includes post balance date new and refinanced debt.

3. Duration of the CHC headstock facility only.

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Charter Hall Group / Full year results 30 June 2013

55

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Group and CHC look through debt maturity profile (by facility limit)

Group funds platform debt maturity profile

CHC look through debt maturity profile

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1,600 $1,509m 400
$1,407m
1,400 350
1,200 300
1,000 250
$860m $211m
800 $697m 200
$152m
600 150
$385m
400 100
$73m
$238m
200 50 $40m $47m
$28m
- - - - - - -
FY14 FY15 FY16 FY17 FY18 FY19+ FY14 FY15 FY16 FY17 FY18 FY19+
Wholesale Development Funds Retail Investor Funds
Wholesale Development Funds Retail Investor Funds
Wholesale Unlisted Funds CQR
Wholesale Unlisted Funds CQR
CHC
CHC
($M)
($M)
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1. The above maturity profile includes debt facilities refinanced in July and August 2013

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Charter Hall Group / Full year results 30 June 2013

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CHC look through swap maturity profile

• The swap maturity profile is on a look through basis to CHC managed funds in which CHC has an investment.

• The managed funds swap portfolio has a weighted average duration of 2.6 years.

• The weighted average swap rate is 4.3% across the maturity profile (compares to the 3 year swap rate as at 30 June 2013 of 3.1%)

Swap maturity profile

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250
48%
47%
200
150
100
14%
11%
50
1%
0% 0%
-
Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20
Swap notional ($M)
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1. Percentage hedged calculated using drawn debt as at 30 June 2013 and is projected on a straight line basis for illustrative purposes only. Charter Hall Group / Full year results 30 June 2013

57

Fund Key

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Listed entities	Funds being realised
CHC Charter Hall Group	CHOF4 Charter Hall Opportunity Fund 4
CQR Charter Hall Retail REIT	CHOF5 Charter Hall Opportunity Fund 5
Wholesale pooled funds	DPF Diversified Property Fund
CPOF Core Plus Office Fund	CHUF Charter Hall Umbrella Fund
CPIF Core Plus Industrial Fund	CHIF 3 & 6 Charter Hall Investment Funds
Partnerships	DRF Direct Retail Fund
CHOT Charter Hall Office Trust	1MPT No1 Martin Place Trust
BP Fund Bunnings portfolio	Retail investor funds
CLP Core Logistics Partnership	CHDPF Charter Hall Direct Property Fund
RP1 Retail partnership no.1 – Woolworths portfolio	DIF1 & 2 Direct Industrial Fund 1 & 2
RP2 Retail partnership no.2 – Bateau Bay Square	CHIF7 130 Stirling Street Trust
KS Retail partnership – Keperra Square	CHIF8 144 Stirling Street Trust
	PFA PFA Diversified Fund

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Charter Hall Group / Full year results 30 June 2013

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Disclaimer

This presentation has been prepared by Charter Hall Group (being 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)) (the “Group”). It is a presentation of general background information about the Group’s activities as at 30 June 2013 unless otherwise stated. It is a summary and does not purport to be complete. It is to be read in conjunction with the Charter Hall Preliminary Financial Report filed with the Australian Securities Exchange on 28 August 2013. 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 forward looking statements. 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.

All information here in is current as at 30 June 2013 unless otherwise stated, and all references to dollars ($) or A$ are Australian Dollars unless otherwise stated.

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Charter Hall Group / Full year results 30 June 2013

Further information

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David Harrison Joint Managing Director +61 2 8908 4033 david.harrison@charterhall.com.au

David Southon Joint Managing Director +61 2 8908 4025 david.southon@charterhall.com.au

Paul Altschwager Kylie Ramsden Chief Financial Officer Head of Listed Investor Relations +61 2 8295 1004 +61 2 8295 1016 paul.altschwager@charterhall.com.au Kylie.ramsden@charterhall.com.au

About Charter Hall Group:

Charter Hall Group (ASX:CHC) is one of Australia’s leading fully integrated property groups, with over 22 years’ experience managing high quality property on behalf of institutional, wholesale and retail clients. As at 30 June 2013 Charter Hall had $10.3 billion of funds under management across the office, retail and industrial sectors. The Group has offices in Sydney, Melbourne, Brisbane, Adelaide and Perth.

The Group’s success is underpinned by a highly skilled and motivated team with diverse expertise across property sectors and risk-return profiles. Sustainability is a key element of its business approach and by ensuring its actions are commercially sound and make a difference to its people, customers and the environment, Charter Hall can make a positive impact for its investors, the community and the Group.

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Charter Hall Group / Full year results 30 June 2013

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