CHARTER HALL GROUP — Annual Report 2017

Aug 22, 2017

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Western Sydney University, Parramatta, NSW

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Agenda

1. Group Highlights

2. Property Funds Management

3. Property Investment

4. Financial Result

5. Outlook and Guidance

6. Additional Information

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David Harrison Managing Director & Group CEO

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Sean McMahon

Chief Investment Officer

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Russell Proutt Chief Financial Officer

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Charter Hall |

Artist impression of 11 Breakfast Creek Road, Newstead, QLD

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Group Highlights – FY17

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Group Returns Property Investments Funds Management Balance Sheet
19.8%
19.7% statutory profit 13.7% FUM growth 0% balance sheet
Total Property
growth to $19.8bn gearing [4]
Investment Return [2]
30.7% OEPS growth
18.1% OEPS $1.5bn Property $5.2bn in gross 20.1% look through
growth Investment portfolio transactions gearing [5]
27.6% 6.9% Property 5.1% Property Funds 18.1% NTA per
Total Platform Return [1] Investment yield Management yield [3] security growth [6]
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Note figures and statistics on this slide are for the 12 months to 30 June 2017 unless otherwise stated

1. Total Platform Return calculated as the distributions per security plus the growth in NTA per security divided by the opening NTA per security adjusted for contributed equity

2. Total Property Investment Return calculated as distributions received from funds plus the growth in investment value divided by the opening investment value of the Property Investment Portfolio. This excludes any investments held for less than a year

3. Property Funds Management (PFM) yield calculated as operating earnings per security post-tax of the PFM business divided by opening NTA adjusted for contributed equity. The PFM pre-tax yield was 6.6%

4. Balance sheet gearing calculated as debt (net of cash) / gross assets (less cash)

5. Look through gearing calculated as Charter Hall Group’s look through debt (net of cash) / total assets (net of cash)

6. Net tangible assets (NTA) per stapled security ($) is calculated using assets less liabilities, net of intangible assets and related deferred tax

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Our Strategy

We use our property expertise to access, deploy, manage and invest equity in our core real estate sectors – office, retail and industrial – to create value and generate superior returns for our customers.

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ACCESS

DEPLOY

MANAGE

INVEST

Accessing equity from wholesale, retail and listed investors.

Creating value through

attractive investment opportunities.

Funds management, asset management, leasing and development services.

Investing alongside our capital partners.

1 YEAR $2.3bn gross equity raised

$5.2bn

gross transactions

$2.4bn

FUM growth

$430m increase in PI[1] to $1.5bn 39% growth

$3.0bn acquisitions $2.3bn divestments

329 assets

19.8%[2]

Total Property Investment Return

3 YEAR

$5.5bn

$11.5bn

gross equity raised gross transactions

$7.8bn acquisitions $3.7bn divestments

$8.4bn

FUM growth

117 additional assets

$807m increase in PI

112% growth 16.1%[2] p.a. Total Property Investment Return

• 5 YEAR $ 8.1bn gross equity raised

$17.3bn

gross transactions

$11.7bn acquisitions $5.6bn divestments

$11.4bn

$1,050m increase in PI

FUM growth 220% growth 144 additional assets [[2]]

14.7%[[2]] p.a.

Total Property Investment Return

1. PI refers to the Property Investment Portfolio

2. Total Property Investment Return calculated as distributions received from funds plus the growth in investment value divided by the opening investment value of the Property Investment Portfolio. This excludes any investments held for less than a year

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Sustained Growth

Operating earnings per security growth[1]

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35.9cps
30.4cps
27.5cps
25.3cps
22.9cps
20.7cps
FY12 FY13 FY14 FY15 FY16 FY17
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Distributions per security growth

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30.0cps
26.9cps
24.2cps
22.3cps
20.2cps
18.2cps
FY12 FY13 FY14 FY15 FY16 FY17
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1. Operating earnings per security prior to FY14 restated to include security-based benefits expense

2. Compound annual growth rate (CAGR) from 30 June 2012 to 30 June 2017

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Charter Hall |

Reject Shop Distribution Centre, VIC

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Group Funds Management Portfolio

			Portfolio Value ($bn)	Portfolio Size (m sqm)	No. of Assets	No. of Tenant Customers	Gross Income ($m)	WALE1 (years)	Occupancy (%)	WACR2 (%)
30	Jun	17	19.8	5.6	329	2,658	1,454	7.7	98.0	6.07
30	Jun	16	17.5	4.8	296	2,550	1,306	7.9	98.6	6.54

Diversification by equity source

Asset type diversification

WALE by sector

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Listed Wholesale
Fund Equity Industrial
$4.1m $12.9m 26%
21% 65%
Office
46%
$19.8bn $19.8bn
Retail
Equity
$2.8m
14% Retail - Long
WALE
10%
Retail - Shopping
Centres
18%
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9.2
8.5
6.5
Office Retail Industrial
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1. WALE is the weighted average lease expiry for the Property Funds Management portfolio and is weighted by gross income

2. WACR is the weighted average cap rate for the Property Funds Management portfolio and is weighted by gross asset value

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Funds Under Management Growth

Funds under management movement ($bn)

Funds under management by equity source ($bn)

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$3.0bn ($2.3bn)
$0.5bn $19.8bn
$1.1bn
$17.5bn
FY16 Acquisitions Divestments Net Capex FY17
revalutions
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$19.8bn
$17.5bn $2.8bn
$2.5bn
$4.1bn
$13.6bn
$2.5bn
$11.4bn $1.9bn
$9.9bn $1.7bn $2.2bn
$8.4bn $1.7bn $2.0bn
$1.5bn
$1.8bn
$1.6bn $12.4bn $12.9bn
$9.5bn
$7.8bn
$6.5bn
$5.4bn
Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17
Wholesale Listed Retail
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1. Compound annual growth rate (CAGR) from 30 June 2012 to 30 June 2017

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Property Investment Portfolio Returns

• The Total Property Investment Return[1] from 30 June 2012 to 30 June 2017 is 14.7% per annum, outperforming the MSCI/IPD Unlisted Wholesale Property Fund Index (NAV post fees) which returned 10.3% over the same period

• The Total Property Investment Return reflects the equity IRR achieved from each core Property Investment and is compared to the sector specific MSCI/IPD index over the same period

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19.3% 19.5%
15.0%
14.7% 14.7%
13.1% 13.0%
11.9% 12.0% 11.9% 12.0%
10.5% 10.5% 10.3%
10.0% 10.0% 10.0% 9.8%
CPOF CPIF CHOT 2 CQR RP2 & RP6 LWHP CLP LWIPs CHC
2012 to 2017 2012 to 2017 2012 to 2017 2012 to 2017 2013 to 2017 2013 to 2017 2013 to 2017 2014 to 2017 2012 to 2017
Office Industrial Office Retail Retail Retail Industrial Retail Diversified
Net Return (% p.a.) MSCI/IPD Benchmark (% p.a.)
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1. Total Property Investment Return calculated as distributions received from funds plus the growth in investment value divided by the opening investment value of the Property Investment Portfolio. This excludes any investments held for less than a year

2. This reflects CHCs Total Property Investment Return from privatisation date of CQO, however the actual Total Property Investment Return of CHCs initial investment in CQO is 23.2%

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Transactional Activity

• Transaction revenue is a regular feature of earnings which we expect to continue

• Performance fees continue to contribute to PFM earnings with whole of fund/partnership fees expected to contribute in coming years

• Refer to Appendix 1 for Portfolio Performance Fee timing schedule

	Office	Industrial	Retail	TOTAL
Acquisitions	$922m	$1,354m	$687m	$2,963m
Divestments	($894m)	($941m)	($417m)	($2,252m)
Net transactions	$29m	$413m	$270m	$711m
Gross transactions	$1,816m	$2,295m	$1,104m	$5,215m
Coca Cola Amatil, Richlands, QLD

1. Transactions for the 12 months to 30 June 2017

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Development Activity

Continues to drive asset creation and attract capital

• Development activity is undertaken by funds/partnerships to enhance income yield and total returns

• In-house development skills are a core competency of Charter Hall

• Total pipeline includes 48 office, industrial and retail projects

• Majority of projects are de-risked through pre-leases and fixed price building contracts

Development Activity (completion value)	Committed Projects	Uncommitted Projects1	Total Pipeline2
Office	$577m	$1,514m	$2,091m
Industrial	$657m	$999m	$1,655m
Retail3	$625m	$272m	$897m
Total	$1,859m	$2,784m	$4,643m

1. Includes potential end value of uncommitted development projects

2. $2.0bn included in FUM at 30 June 2017

3. Reflects end value of development spend only

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Equity Flows

Equity flows have generated $3bn in undrawn debt and cash within funds platform

Diversified equity sources with $2,336m gross equity raised during the year including:

• $988m in Listed Funds including $692m from the successful IPO of Charter Hall Long WALE REIT

• $993m in Wholesale Funds and Partnerships

• $355m in Direct Funds with further equity raising underway in PFA, DOF and DIF4

	FY14	FY15	FY16	FY17
Wholesale Pooled Funds	$651m	$653m	$606m	$776m
Wholesale Partnerships	$261m	$598m	$467m	$217m
Listed Funds1	$260m	$274m	$76m	$988m
Direct Funds2	$277m	$180m	$318m	$355m
Gross equity raised	$1,449m	$1,705m	$1,467m	$2,336m
Net equity raised	$987m	$1,297m	$1,099m	$1,689m

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

1. Listed Funds include equity raised in CHC, CQR and CLW

2. Funds and syndicates for retail, SMSF and high net worth investors

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Charter Hall |

570 Bourke Street, Melbourne, VIC

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Property Investment Portfolio

			Portfolio Value ($m)1	No. of Properties	WALE2 (years)	Occupancy (%)	WARR3 (%)	WACR4 (%)	WADR5 (%)	Tenant Retention Rate (%)
30	Jun	17	1,527	292	7.4	97.7	3.6	6.09	7.3	76.2%
30	Jun	16	1,098	258	8.8	98.6	3.4	6.46	7.9	79.3%

Top 10 Tenant Customers by Gross Income

Diversification by Sector

Diversification by Fund

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Woolworths 11.8%
CLW
Wesfarmers 11.2% DCSF $166m CQR
$40m $321m Office Retail -
Government 8.3% DIF4 39% Shopping
$29m Centres
Telstra 3.0% CPIF RP2 26%
$117m $6m
Commonwealth Bank 2.6% LWHP
$50m
Macquarie Bank 1.8%
$1,527m LWIPs $1,527m
Metcash 1.7% CLP $29m
$139m CPRF
Retail - Long
Suncorp Metway 1.3% $45m
WALE
RP6
Aurizon 1.0% $34m 8%
BSWF
Westpac 0.9% $100m
CHOT
$213m
CPOF Industrial
67% Repeat Tenant Customers [[6]] $236m 27%
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67% Repeat Tenant Customers[[6]] across 1,800 leases

1. Portfolio Value represents all Property Investments

2. WALE is weighted by gross income of the Property Investment Portfolio

3. WARR is weighted by gross income of the Property Investment Portfolio

4. WACR is weighted by the Investment value of each Investment

5. WADR is weighted by the Investment value of each Investment

6. Repeat Tenant Customers are those with multiple leases across CHC funds

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Property Investment Portfolio Movement

• During the year the Property Investment Portfolio increased by 39% (+$430m) to $1,527m including:

• $304m of net investments

• $118m of property valuations (net)

• Attractive PI earnings yield of 6.9%

• PI yield falling due to improved quality and WALE, together with compressing cap rates

Property Investment Portfolio movement ($m)

Property Investment Portfolio Earnings

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10.0%
$1,527m
$118m $1,527m
8.0%
$9m $7m
$135m
$1,098m
$160m
6.0%
$944m
$1,098m
$720m
4.0%
$548m
$477m
2.0%
0.0%
Jun-16 Office Industrial Retail Other Property Jun-17 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17
valuations Investment Portfolio Co-investment Yield (%)
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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Capital Deployment

• On 28[th] April 2017, Charter Hall announced to the market a $275m Institutional Placement to fund the majority of $333m of contracted, committed or identified investments

• Capital deployment is currently ahead of schedule, with $250m deployed/committed into identified investments

Sector	Investment	Size	Indicative timing	Update
Industrial	Charter Hall Prime Industrial Fund (CPIF)	$20m	Q3 FY17	Deployed
Industrial	Direct Industrial Fund No. 4 (DIF4)	$30m	Q4 FY17	Deployed
Office	Brisbane Square Wholesale Fund (BSWF)	$95m	Q4 FY17	Deployed
Office	Charter Hall Prime Office Fund (CPOF)	$30m	Q4 FY17	Deployed
Diversified	Direct Consumer Staples Fund (DCSF)	$25m	Q4 FY17	Deployed
Office	Charter Hall PFA Fund (PFA)	$10m	Q1 FY18	Deployed
Retail (Liquor)	Long WALE Investment Partnership (LWIP)	$10m	Q1 FY18	Deployed
Retail (Hardware)	Long WALE Hardware Partnership (LWHP)	$30m	Q1 FY18	Committed
Total identified investment	opportunities deployed / committed	$250m
Retail (Shopping)	Charter Hall Prime Retail Fund (CPRF)	$41m	Q1 FY18	Due Diligence Ongoing
Office	Counter Cyclical Trust (CCT)	$25m	During FY18	Sourcing Acquisitions
Retail (Shopping)	Retail Partnership No. 6 Trust (RP6)	$17m	During FY18	Sourcing Acquisitions
Total identified investment	opportunities with an indicative investment timing during FY18	$83m
Total identified investment	opportunities	$333m

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Major Cross Sector Tenant Customer Relationships

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Overview of Wesfarmers Subsidiary Leases

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Overview of Woolworths Group Subsidiary Leases

Sector	Area	Tenancies
	(NLA ‘000’s m2)	(#)
Retail	462	99
Industrial	282	6
Office	42	4
Total	786	109
% of Platform Gross Income	11.2%

Sector	Area	Tenancies
	(NLA ‘000’s m2)	(#)
Retail	470	136
Industrial	247	6
Office	1	1
Total	718	143
% of Platform Gross Income	11.8%

Tenant Customer Breakdown by Income

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Others
Target
2%
7%
Kmart
8%
Bunnings Coles
23% 60%
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Tenant Customer Breakdown by Income

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Big W
6% Dan Murphy's
ALH 1%
32% Others
2%
Woolworths
59%
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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Sustainability

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Charter Hall has 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.

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Office national average weighted energy ratings increased to 4.5 Stars . Retail national average weighted energy ratings achieved 3.77 Stars

National Average NABERS Weighted Rating	National Average NABERS Weighted Rating	National Average NABERS Weighted Rating
	Energy	Water
Office	4.50	3.40
Retail	3.77	3.49

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Charter Hall is a member of GRESB, with six funds responding in FY17. Existing funds CHOT and CPOF achieved top quartile Green Star status in FY16, while CPIF continued year on year improvements

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Charter Hall have joined international philanthropy movement Pledge 1%. Our Pledge is through Our People: Our Places: Our Partnerships

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Our People – pledge their time to making a difference in their communities

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Our Places – pledge spaces for use by community groups

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Our Partnerships – provide programs and services for our people, our customers and in our communities

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Charter Hall has four registered International WELL Building Projects

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Financial Result

Salamander Bay, Port Stephens, NSW

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Income Statement

OEPS pre-tax growth of 33.3%

• OEPS post-tax growth of 18.1% to 35.9cps and DPS growth of 11.5% to 30.0cps

• PI operating earnings up 8.2% to $85.0m

• PFM operating earnings pre-tax up 85.3% to $85.7m

• Property Investments[1 ] net valuation increase of $118.3m

• Statutory profit after tax growth of 19.7% to $257.6m

$m	FY17	FY16	Change %
PI operating earnings	85.0	78.5	8.2%
PFM operating earnings pre-tax	85.7	46.2	85.3%
Operating earnings pre-tax	170.6	124.7	36.8%
Tax	(19.5)	-	-
Operating earnings post-tax	151.2	124.7	21.2%
Property valuations (net)1	118.3	107.8	9.8%
Amortisation and impairment of intangibles	(4.3)	(8.5)	48.9%
Impairment of investment in joint venture	(10.5)	-	-
Gain on disposal of investments and inventory1	3.9	6.1	(36.1%)
Realised and unrealised losses on derivatives1	8.2	(10.3)	179.3%
Income taxes2	(4.1)	(1.7)	(142.2%)
Other non-operating items1	(5.0)	(2.9)	73.3%
Total non-operating items	106.4	90.5	17.6%
Statutory profit after tax	257.6	215.2	19.7%
OEPS pre-tax (cps)	40.5	30.4	33.3%
OEPS post-tax (cps)	35.9	30.4	18.1%
DPS (cps)	30.0	26.9	11.5%
Distribution payout ratio	83.5%	88.4%	(4.9%)

1. Includes the Group's proportionate share of non-operating items of equity accounted investments on a look through basis 2. Non-operating deferred income tax expense

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Segment Result

• PI operating earnings growth driven by:  3.6% WARR across Property Investments Portfolio

• Strong market rental reversions in Office

• Growth in Property Investments Portfolio

• PFM operating earnings growth driven by:

• PFM revenue growth of 34.2% outpacing total PFM expense growth of 7.0%

• FY17 tax expense to drive franking credits in FY18

$m	FY17	FY16	Change %
PI revenue	84.8	78.5	8.0%
Interest and expenses	0.2	(0.0)	-
PI operating earnings	85.0	78.5	8.2%
PFM revenue	178.5	133.0	34.2%
PFM expenses	(68.7)	(61.5)	11.6%
Corporate expenses	(24.2)	(25.2)	(4.2%)
Total PFM expenses	(92.8)	(86.8)	7.0%
PFM operating earnings pre-tax	85.7	46.2	85.3%
Operating earnings pre-tax	170.6	124.7	36.8%
Tax	(19.5)	-	-
Operating earnings post-tax	151.2	124.7	21.2%
PI Yield	6.9%	7.4%	(0.4%)
PFM Yield	5.1%	4.1%	1.0%
PFM EBITDA Margin1	49.9%	36.7%	13.2%
Corporate MER2	12.2bps	14.5bps	(2.3bps)

1. PFM EBITDA Margin calculated as PFM operating earnings (excluding depreciation and tax expense) divided by PFM revenue 2. Corporate MER calculated as Corporate expenses divided by closing FUM, as basis points

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Property Funds Management Composition Scalable Business Model

• PFM revenue up 34.2% to $178.5m

• • Investment Management revenue up 41.1% to $131.6m:  Continued momentum in FUM driving funds management and transaction fees

• Outperformance driving performance fees

• Diversified contribution to investment management fees from all funds and partnerships

• Property services revenue up 18.1% to $46.9m:  Value adding development services

• Successful leasing activity driving high occupancy

$m	FY17	FY16	Change %
Fund management fees	75.0	62.6	19.9%
Transaction and performance fees	56.6	30.7	84.2%
Investment management revenue	131.6	93.3	41.1%
Property management fees	16.4	16.0	2.8%
Development management fees	11.3	8.2	37.9%
Leasing fees	14.8	11.2	32.1%
Facilities and project management fees	4.3	4.3	0.2%
Property services revenue	46.9	39.7	18.1%
PFM revenue	178.5	133.0	34.2%
PFM expenses	(68.7)	(61.5)	11.6%
Corporate expenses	(24.2)	(25.2)	(4.2%)
Total PFM expenses	(92.8)	(86.8)	7.0%
PFM operating earnings pre-tax	85.7	46.2	85.3%
Tax	(19.5)	0.0	-
PFM operating earnings post-tax	66.2	46.2	43.2%

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Cashflow

• FY17 Distribution covered 118% by operating cashflow

• Working capital movement driven by timing of fees and payment of expenses

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$19.5m $0.2m $156.3m
$151.2m ($11.7m)
($7.9m)
$3.6m
$1.4m $132.1m
Operating Change in working Earnings vs Security based Depreciation Tax expense vs Other Operating Distribution
Earnings capital Distributions benefits expense cash tax paid Cashflow
received
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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Balance Sheet

Significant liquidity

• Strong balance sheet maintained:

• Cash position of $174m to fund identified and pipeline investments

• Considerable financial flexibility with total investment capacity of approximately $300m

• NTA growth of 18.1% to $3.60 per security

• Financial return metrics continue to deliver on strategy

$m	30 June 2017	30 June 2016	Change %
Cash	$174m	$145m	20.0%
Property Investments	$1,527m	$1,098m	39.1%
Other assets	$106m	$102m	3.5%
Intangibles	$65m	$70m	(6.2%)
Total assets	$1,873m	$1,416m	32.3%
Total liabilities	$151m	$104m	44.3%
Total equity	$1,722m	$1,311m	31.4%
NTA per security1	$3.60	$3.04	18.1%
Balance sheet gearing2	0.0%	0.0%	-
Investments look through gearing3	20.1%	25.3%	(5.2%)
Return Metrics	30 June 2017	30 June 2016	Change %
Return on Equity pre-tax4	13.1%	10.8%	2.3%
Return on Equity post-tax4	11.6%	10.8%	0.8%
Total Property Investment Return5	19.8%	16.4%	3.4%
Total Platform Return6	27.6%	18.1%	9.5%

1. Net tangible assets (NTA) per stapled security ($) is calculated using assets less liabilities, net of intangible assets and related deferred tax

2. Balance sheet gearing calculated as debt (net of cash) / gross assets (less cash)

3. Look through gearing calculated as Charter Hall Group’s look through debt (net of cash) / total assets (net of cash)

4. Return on equity calculated as OEPS divided by opening NTA per security adjusted for contributed equity during the period

5. Total Property Investment Return calculated as distributions received from funds plus the growth in investment value divided by the opening investment value of the Property Investment Portfolio. This excludes any investments held for less than a year

6. Total Platform Return calculated as the growth in NTA per security plus the distribution per security divided by the opening NTA per security adjusted for contributed equity during the period

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Debt and Capital Management

• Substantial funding capacity available across the funds platform with $3.0bn of available liquidity

• $5.5bn of new and refinanced debt facilities in FY17

• Look through weighted average debt maturity¹ of 4.3 years

• Look through weighted average cost of debt² of 4.09% down from

Key debt metrics funds platform	Jun 17	Jun 16
Combined fund facility limits ($m)	8,611	7,527
Combined fund undrawn debt ($m)	2,313	1,667
Total group cash ($m)	679	431
Look through gearing (%)	20.1%	25.3%
Look through weighted average debt maturity (yrs)1	4.3	3.8
Look through weighted average cost of debt2	4.09%	4.55%
Look through interest rate hedging (%)	65%	70%

• 4.55%

Drawn Debt ($m) and Gearing (%) by Sector¹

• Interest rate hedging of 65% with an average maturity of 3.8 years

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

4,000 34.6%
3,500
3,000
37.6%
2,500
19.6%
2,000
1,500
1,000
30.3%
500
0.0%
0
Corporate Office Retail Industrial Diversified
Drawn Debt Undrawn Debt
Debt Facility ($m)
----- End of picture text -----

1. Debt duration is based on facility limits

2. Passing cost of debt is on a look through basis and includes floating rate, hedge rate, margins, line fee but excludes undrawn line fees and amortised borrowing costs

26

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017 Outlook & Guidance

333 George Street, Sydney, NSW

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017 FY18 Earnings Guidance

We believe the investment landscape will continue to accommodate growth

• Relative attractiveness of real assets

• Continued equity flows expected to real assets for institutional fund managers with strong track records

• We continue to expect asset values to remain well supported

Our guidance is as follows:

Based on no material change in current market conditions and having regard to the 18% earnings growth achieved in FY17 over FY16, our FY18 guidance is for operating earnings per security post-tax to be no less than FY17 of 35.9cps

Artist impression of 130 Lonsdale Street, Melbourne, VIC

The distribution payout ratio is expected to normalise within our longer term range, being 85% to 95% of operating earnings per security post-tax

Lansell Square, Bendigo, VIC

28

Charter Hall |

Berrinba Distribution Centre, QLD

Charter Hall |

1 Shelley Street, Sydney, NSW

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Charter Hall Group Overview[1]

	NSW ACT VIC 8 QLD NT WA SA TAS Office 0 Retail 1 Industrial 1 2 Assets valued at $0.1bn Office 9 Retail 22 Industrial 15 46 Assets valued at $2.7bn Office 4 Retail 10 Industrial 7 21 Assets valued at $1.0bn 71 Assets valued at $4.3bn Office 11 Retail 28 Industrial 32	NSW ACT VIC 8 QLD NT WA SA TAS Office 0 Retail 1 Industrial 1 2 Assets valued at $0.1bn Office 9 Retail 22 Industrial 15 46 Assets valued at $2.7bn Office 4 Retail 10 Industrial 7 21 Assets valued at $1.0bn 71 Assets valued at $4.3bn Office 11 Retail 28 Industrial 32	NSW ACT VIC 8 QLD NT WA SA TAS Office 0 Retail 1 Industrial 1 2 Assets valued at $0.1bn Office 9 Retail 22 Industrial 15 46 Assets valued at $2.7bn Office 4 Retail 10 Industrial 7 21 Assets valued at $1.0bn 71 Assets valued at $4.3bn Office 11 Retail 28 Industrial 32	Office 10 Retail 48 Industrial 19 77 Assets valued at $3.7bn Office 15 Retail 54 Industrial 35 104 Assets valued at $7.9bn Office 1 Retail 5 Industrial 1 7 Assets valued at $0.2bn
	21 Assets valued at $1.0bn
	Office 4 Retail 10 Industrial 7

1. Excludes one New Zealand asset acquired June 2017

31

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Charter Hall Managed Funds

Office $9.1bn

Industrial $5.2bn

Retail $5.5bn

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

CHOT CPOF [1] BSWF [1] CLP CPIF LWHP RP2 [2] LWIPs [3]
$2.6bn $3.4bn $0.5bn $1.3bn $2.3bn $0.7bn $0.1bn $0.6bn
75
Mandates RP6 Mandates CPRF
$0.6bn $0.3bn $0.3bn $0.2bn
DOF PFA Workzone DIFs/CDC DAT DAT2
$1.2bn $0.2bn $0.1bn $0.8bn $0.1bn $0.1bn
VA CHIF 8 BW Trust
8
$0.1bn $0.1bn $0.1bn
CLW [4] CLW [4] CQR CLW [4]
$0.4bn $0.7bn $2.8bn $0.3bn
Equity
Wholesale
Retail Equity
Listed Equity
----- End of picture text -----

Note Statistics on this page may not add due to rounding

1. CPOF holds 49.1% of the units in the Brisbane Square Wholesale Funds (BSWF)

2. CQR holds 47.5% of the units in RP2

3. LWIPs include LWIP1 and LWIP2. CLW hold 45% of the units in LWIP1

4. Charter Hall Long WALE REIT (CLW) is a $1.4bn listed REIT diversified across the Office, Industrial and Retail sectors

32

Charter Hall |

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33

Charter Hall |

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34

Charter Hall |

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35

Charter Hall | Charter Hall Group Half Year Results I 24 February 2017

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Charter Hall Direct

“Charter Hall Direct is Australia’s leading manager of unlisted property funds and syndicates for retail investors including high net worth, self managed super funds and mum and dad investors that are self directed or use financial advisers.”

RICHARD STACKER

GROUP EXECUTIVE – GLOBAL INVESTOR RELATIONS

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Best Direct Property Fund at the Money Management | Lonsec Fund Manager of the Year Awards in 2017

Best Direct Property Fund at the Professional Planner | Zenith Fund Awards in 2016

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FUM PROPERTIES $ 2.9 b 52

OCCUPANCY WALE CAP RATE 99.8 % 9.5 6.42 % yrs

Direct fund and syndicate assets reflected in the retail, office, Industrial sector statistics

36

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Direct Funds Net Returns Since Inception

• Charter Halls active Direct Syndicates & Funds have an average return of 13.0% p.a. Outperforming the MSCI/IPD Unlisted Core Wholesale Property Funds Index by an average of 1.8%[1]

• The above benchmark performance of the Direct Funds continues to attract equity flows into existing and new funds

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

22.1%
18.8%
17.5%
15.9%
13.3%
13.0%
12.4% 12.6% 12.7% 12.3% 12.3%
11.3% 11.4% 11.6% 11.5% 11.8%
10.8% 11.0%
10.2%
9.8% 9.6%
9.2%
6.9%
6.6%
144 Stirling St WZ Trust BW Trust VA Trust CDC Trust DIF2 DIF3 DAT DAT2 PFA DOF (Ordinary) DOF (WSA)
Trust 2014-2017 2014-2017 2014-2017 2014-2017 2013-2017 2014-2017 2015-2017 2016-2017 2012-2017 2010-2017 2014-2017
2012-2017
Perth Office Perth Office Australian Brisbane Office Adelaide Australian Australian Australian Australian Australian Australian Australian
Retail Industrial Industrial Industrial Retail Retail Office Office Office
Net Return (% p.a.) Benchmark (% p.a.)
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Note Income return is based on accumulation index, which assumes distributions are reinvested 1. Benchmark is MSCI/IPD Unlisted Core Wholesale Property Fund Index

37

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Portfolio Performance Review Dates

Fund	Portfolio Performance Review Dates
Charter Hall Office Trust (CHOT)	FY20
Charter Hall Prime Office Fund (CPOF)	3 yearly – FY18
Brisbane Square Wholesale Fund (BSWF)	3 yearly – FY19
Charter Hall Prime Industrial Fund (CPIF)	3 yearly – FY19
Core Logistics Partnership (CLP)	7 yearly – FY20 plus individual asset divestment performance fees
Long WALE Hardware Partnership (LWHP)	7 yearly – FY21 plus individual asset divestment performance fees
Retail Partnership No. 2 (RP2)	7 yearly – FY22
Retail Partnership No. 6 (RP6)	7 yearly – FY22
Direct Office Fund (DOF)	5 yearly – FY20
Charter Hall PFA Fund (PFA)1	5 yearly – FY23 or individual asset divestment performance fees
Charter Hall Direct BW Trust (BW Trust)	FY19
Charter Hall Direct VA Trust (VA)	FY20
Charter Hall Direct CDC Trust (CDC)	FY20
Charter Hall Direct Industrial Fund No. 2 (DIF2)	FY20
Charter Hall Direct Industrial Fund No. 3 (DIF3)	FY22
Charter Hall Direct Industrial Fund No. 4 (DIF4)	5 yearly – FY22
Charter Hall Direct Automotive Trust (DAT)	FY22
Charter Hall Direct Automotive Trust No. 2 (DAT2)	FY22

1. Performance fee timing varies by unit class

38

Charter Hall |

No.1 Martin Place, Sydney, NSW

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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Property Investment Portfolio

($m)	Ownership Stake (%)	Charter Hall Investment	Charter Hall Income	WALE	WACR	WADR	WARR	PI Yield2
Office		549.1	25.3	5.6	5.8%	7.1%	3.7%	7.3%
Charter Hall Office Trust (CHOT)	14.3%	212.9	13.4	4.6	5.5%	7.0%	3.7%	8.6%
Charter Hall Prime Office Fund (CPOF)	10.5%	236.4	11.7	6.4	5.9%	7.2%	3.8%	6.2%
Brisbane Square Wholesale Fund (BSWF)	16.8%	99.6	0.2	6.8	6.1%	7.3%	3.6%	6.0%
Charter Hall PFA Fund (PFA)	0.1%	0.2	0.0	7.0	7.6%	8.2%	3.5%	7.8%
Industrial		285.8	16.5	9.1	6.4%	7.4%	3.0%	6.2%
Core Logistics Partnership (CLP)	13.8%	139.2	9.9	9.6	6.3%	7.6%	3.0%	6.3%
Charter Hall Prime Industrial Fund (CPIF)	6.0%	117.1	6.2	7.7	6.4%	7.6%	3.0%	6.1%
Direct Investment Trust No. 4 (DIF4)	21.2%	29.5	0.4	11.6	6.5%	6.0%	3.0%	6.6%
Retail		486.0	34.1	6.8	6.1%	7.4%	3.9%	7.3%
Charter Hall Retail REIT (CQR)1	18.6%	321.2	21.1	6.8	6.3%	7.4%	4.1%	7.7%
Charter Hall Prime Retail Fund (CPRF)	38.0%	44.8	1.9	4.1	5.8%	7.5%	4.4%	6.3%
Long WALE Invest Partnership (LWIP)	5.0%	19.0	5.2	17.2	6.0%	7.4%	2.0%	7.7%
Long WALE Invest Partner 2 (LWIP2)	10.0%	10.1	0.7	18.0	6.0%	7.4%	2.0%	7.3%
Long WALE Hardware Partnership (LWHP)	9.9%	50.2	2.6	9.4	5.7%	7.4%	2.9%	5.7%
Retail Partnership No. 2 (RP2)	5.0%	6.4	0.4	4.8	5.8%	7.5%	4.5%	7.1%
Retail Partnership No. 6 (RP6)	20.0%	34.3	2.1	3.3	5.8%	7.7%	3.3%	6.5%
Diversified		166.0	6.6	11.8	6.2%	7.4%	2.9%	6.3%
Charter Hall Long WALE REIT (CLW)	20.0%	166.0	6.6	11.8	6.2%	7.4%	2.9%	6.3%
Other3		59.9	2.3
Total4		1,546.7	84.8	7.4	6.1%	7.3%	3.6%	6.9%

1. WARR is contracted weighted average rent increases of specialty tenant customers

2. Yield is calculated as operating earnings divided by average investment during the period. Excludes MTM movements in NTA during the year

3. Other includes investments and income from funds realised during the year, direct property assets and CIP

4. Total includes investment in CIP which is not included as part of the Property Investment Portfolio or in the calculation of key Portfolio metrics

40

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Charter Hall Retail REIT (CQR)

Key events during FY17

• Acquired Arana Hills Plaza, QLD for $67.1m

• Disposal of non-core assets for $81.2m reflecting a combined 5.8% yield including Pakington Strand (50% share), Caboolture, Moe Kmart and Newstead

• Refinanced $100 million of FY19 maturities and increased liquidity by a further $225 million

• RP1 JV bank debt extended to FY22

• Weighted average debt maturity of 6.1 years

• Balance sheet gearing of 33.1% towards the lower end of the target range

• Secret Harbour development completed in June 2017

Key Metrics

	Key Metrics
	Grosspropertyassets	$2.8bn
	Total debt(look-through)	$1.0bn
	Gearing (balance sheet)	33.1%
	Gearing (look-through)	36.2%
	No. of assets	71
	Occupancy	98.0%
	Portfolio WALE(years)	6.8
	WACR	6.3%
	WARR Charter Hall interest	4.1% 18.6%
	Charter Hall co-investment	$321.2m

Debt expiry profile (by facility limit)

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

$382m
$263m
$252m
$177m
$150m
$50m
FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28
USPP Non-recourse JV bank debt
Bi-lateral Bank Debt Facilities Syndicated Bank Debt Facility
Undrawn
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Geographic allocation (by GAV)

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NT
WA 1%
15%
TAS
1%
NSW & ACT
SA
47%
5%
VIC
11%
QLD
20%
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41

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Charter Hall Office Trust (CHOT)

Key events during FY17

• The Fund achieved a 40.3% return for the 12 months to June 2017

• The portfolio was independently revalued to $2.6bn, a net valuation increase of $462.6m or 22% against the June 2016 book valuations

• The Fund divested of 5 Queens Road, St Kilda and Avaya House, North Ryde reflecting a $60m profit (or 37%) over the December 2015 book valuation

• Charter Hall realised an interim performance fee of $12.8m and extended the fund term by 3 years to April 2020

• Major leasing during the year included Amazon who now occupy 16,500sqm (22% NLA) at 2 Park Street, Sydney

Key metrics

	Key metrics
	Grosspropertyassets	$2.6bn
	Total debt	$1.1bn
	Gearing (balance sheet)	40.1%
	No. of assets	10
	Occupancy	99.2%
	WALE	4.6
	WACR	5.5%
	WARR Charter Hall interest	3.7% 14.3%
	Charter Hall co-investment	$212.9m

Debt expiry profile (by facility limit)[1]

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$500m
$400m
$400m
FY18 FY19 FY20 FY21 FY22+
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Geographic allocation (by GAV)
WA
2%
VIC
24%
QLD
8% NSW
66%
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1. Refinanced debt facility post 30 June 2017

42

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Charter Hall Prime Office Fund (CPOF)

Key events during FY17

• The Fund achieved a 19.2% return for the 12 months to 30 June 2017 being the highest performing office fund in the IPD office index over 1, 2, 3 and 5 years

• Three acquisitions were made: 105 Phillip St, Parramatta (partially completed development asset in partnership with Direct Office Fund); 990 LaTrobe St, Melbourne and 366-380 Queen St, Brisbane (development site)

• An additional 16.57% stake was acquired in BSWF which gives CPOF greater exposure to core assets at Brisbane Square, Brisbane and BankWest Tower, Perth

• Assets currently under construction include 900 Ann Street, Fortitude Valley (new Aurizon headquarters), 105 Phillip St, Parramatta (12 year pre-commitment to Government Property NSW) and Raine Square, Perth retail upgrade

• Development opportunities being progressed at 130 Lonsdale Street, Melbourne and GPO Adelaide with significant pre-commitment campaigns well underway

Key metrics

	Key metrics
	Grosspropertyassets	$3.4bn
	Total debt Gearing (balance sheet)	$0.7bn 26.4%
	No. of assets	21
	Occupancy	97.9%
	WALE WACR	6.4 5.9%
	WARR	3.8%
	Charter Hall interest	10.5%
	Charter Hall co-investment	$236.4m

• CPOFs equity raising closed oversubscribed by $41m to total $541m. The fund welcomed two new domestic investors and one new international investor in Q4 2017

Debt expiry profile (by facility limit)

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$400m $400m $400m
FY18 FY19 FY20 FY21 FY22+
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Geographic allocation (by GAV)

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WA
16%
SA
NSW
1%
36%
VIC
22%
QLD
25%
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43

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Charter Hall Long WALE REIT (CLW)

Key events during FY17

• Successful listing on the ASX on 8 November 2016

• Upgraded FY17 operating EPU 1.4% vs PDS forecast[1]

• Completed or committed to the following property acquisitions:

• SUEZ portfolio (10 industrial assets, $65.9m, 15 year WALE)

• LWIP hotel portfolio (three ALH operated hotels, $23.2m[2] , 15 year WALE)

• Bunnings Mackay ($28.5m, 9.4 year WALE)

• Revalued portfolio (excluding acquisitions) recording a gross $37.4m valuation uplift, or 3.1% increase on prior valuations

• 2.2% NTA per unit growth from IPO, post statutory adjustments including the write off of acquisition costs

• Introduced second leading Australian bank to REIT’s syndicated debt facility

Key metrics

	Key metrics
	Grosspropertyassets	$1.4bn
	Total debt	$0.4bn
	Gearing (balance sheet)	29.9%
	No. of assets	80
	Occupancy	100.0%
	WALE WACR	11.8 6.2%
	WARR	2.9%
	Charter Hall interest	20.0%
	Charter Hall co-investment	$166.0m

• $185m of new interest rate swaps, increasing look through hedging from 35% to 66%

• LWIP JV successfully issued A$200m[2] note for 10 year term at all-in cost of 5.0%

Debt expiry profile (by facility limit)

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$450m
FY18 FY19 FY20 FY21 FY22+
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Geographic allocation (by GAV)

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NSW
12%
WA
25%
QLD
16%
TAS
1%
SA
23%
VIC
23%
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44

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Core Logistics Partnership (CLP)

Key events during FY17

• CLP divested six assets for a combined realisation of $353m in FY17. These sales improved portfolio quality, ensured funding of CLPs development pipeline, provided a $120m capital return to the unitholders and crystallised performance fees of $7.3m to Group.

• Executed new leases over 164,000sqm of GLA during the year including Target, The Reject Shop & Rand at Drystone Estate with a combined total GLA of 117,000sqm.

• Delivered three new pre-leased facilities at Drystone Estate, Victoria including The Reject Shop (37,864sqm), Target (63,320sqm) and Rand (16,557sqm) with a combined value of $149m at 30 June 2017.

• Secured preleases to Couriers Please (15,000sqm) and Laverton Cold Storage (5,950sqm) at Drystone Estate with practical completion scheduled for August and October 2017 respectively.

Key metrics

	Key metrics
	Grosspropertyassets Total debt	$1.3bn $0.3bn
	Gearing (balance sheet)	21.3%
	No. of assets	23
	Occupancy	100%
	WALE	9.6
	WACR	6.3%
	WARR	3.0%
	Charter Hall interest	13.8%
	Charter Hall co-investment	$139.2m

Debt expiry profile (by facility limit)

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$450m
FY18 FY19 FY20 FY21 FY22+
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Geographic allocation (by GAV)

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

WA NSW
16% 8%
QLD
11%
TAS
4%
SA
6%
VIC
55%
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45

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Charter Hall Prime Industrial Fund (CPIF)

Key events during FY17

• CPIF settled on seven acquisitions for $311m during the period including 50% of Truganina Distribution Facility VIC ($51.25m), Somerton Logistics Centre VIC ($139.5m) and two properties leased to Primo in Chullora and Greenacre ($81.05m) in an off market transaction. The fund also sold twelve, predominantly smaller non-core assets during the year for $312m.

• CPIF executed new leases over 228,500sqm of GLA during the year. These included CUB (30,655sqm) at Rosehill Distribution Centre, Fastway Couriers (21,500sqm) at Chullora Logistics Park and GWA (30,000sqm) at M5/M7 Logistics Park.

• CPIF delivered three new development projects during the year including Berrinba Distribution Centre (19,000sqm), M5/M7 Logistics Park (25,000sqm) and Smithfield Distribution Centre (17,000sqm) with a collective value in excess of $130m. CPIF also has a committed development pipeline under construction that will deliver a further 160,000sqm of GLA that is worth $323m.

Key metrics

	Key metrics
	Grosspropertyassets	$2.3bn
	Total debt(net of cash)	$0.1bn
	Gearing (balance sheet)	7.5%
	No. of assets	48
	Occupancy	94.2%
	WALE	7.7
	WACR	6.35%
	WARR	3.0%
	Charter Hall interest	6.0%
	Charter Hall co-investment	$117.1m

• CPIF undertook a US Private Placement in May diversifying its debt sources and also completed equity raisings of $530m during the year.

Debt expiry profile (by facility limit)

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$500m $498m
FY18 FY19 FY20 FY21 FY22+
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Geographic allocation (by GAV)

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

NT
1%
WA
16% NSW
27%
TAS
4%
SA
1%
QLD
12%
VIC
39%
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46

Charter Hall |

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Target, Drystone Industrial Estate, 441 Doherty Road, Truganina, VIC
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Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Segment Earnings – Proportional Basis

|harter Hall
|
Segment Earnings – Proportional Basis
Charter Hall Group Full Year Results I 23 August 2017|harter Hall
|
Segment Earnings – Proportional Basis
Charter Hall Group Full Year Results I 23 August 2017|
|---|---|
|FY17 ($m)
Property Investments
Property Funds
Management
Total||
|
Property rental income
157.4
-
157.4||
|Property expenses
(31.4)
-
(31.4)||
|Management fee revenue
-
158.7
158.7||
|Net property development EBITDA1
3.6
-
3.6||
|Net operating expenses
(1.0)
(68.3)
(69.4)||
|Corporate expenses2
-
(22.8)
(22.8)||
|Security based benefits expense
-
(1.4)
(1.4)||
|EBITDA
128.5
66.2
194.7||
|EBITDA as a % of total EBITDA
66.0%
34.0%||
|Inter-segment fees and expenses3
(14.1)
23.0
8.9||
|Depreciation and amortisation expense
(0.2)
(3.5)
(3.7)||
|Net interest expense
(28.6)
-
(28.6)||
|Income tax expense
(0.7)|(19.5)
(20.1)|
|Operating earnings
85.0
66.2
151.2||
|Other Segment Items:||
|Realised gains/(losses) on disposal of investments4
32.6||
|EBITDA as a % of total EBITDA, including realised gains/(losses)5
70.9%
29.1%||

1. CIP Earnings before depreciation, interest and tax

2. Corporate expenses includes the costs to manage the listed stapled entity of CHC and non sector costs of managing the group wide platform including the Board, CEO, CFO, heads of group wide functions (People and IT), group finance, CHC investor relations, group marketing, corporate share of security-based benefits expense and restructuring costs.

3. Inter-segment fees and expenses are made up of fees and expenses paid by the funds to the Group whether treated as expenses or capitalised by the fund

4. Realised gains/(losses) are calculated on property disposals based on sales price less historical acquisition costs plus capital expenditure on a look through basis

5. This ratio is calculated by dividing the Property Investments and Property Funds Management EBITDA plus the realised gains/(losses) on disposal of investments by the total EBITDA plus realised gains/(losses) on disposal of investments

48

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Funds Management Platform Debt Profile

• The hedge portfolio has a duration of 3.8 years

• The weighted average hedge rate is 2.88%

• The weighted average cost of debt is 4.11%

Debt expiry profile ($m)

Group hedge maturity profile ($m)

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2,756
7,000 4.00%
2,245 6,000
3.50%
5,000
3.00%
1,452
4,000
2.50%
3,000
800
700
2.00%
2,000
382
276
1.50%
- 1,000
FY18 FY19 FY20 FY21 FY22 FY23 FY 24 & FY26 FY27+ 0 1.00%
25 Current Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23
Industrial Retail Office Diversified Corporate
Total Hedges Drawn Debt Hedge rate
----- End of picture text -----

1. Interest rate hedging as at 30 June 2017

2. Current drawn debt as at 30 June 2017and is projected on a straight line basis for illustrative purposes only

3. Hedge Rate is weighted average rate as at 30 June 2017. The look through weighted average cost of debt is 4.09%

49

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Fund Key and Glossary

Listed Entities

CHC	Charter Hall Group
CQR	Charter Hall Retail REIT
CLW	Charter Hall Long WALE REIT
Wholesale
BSWF	Brisbane Square Wholesale Fund
CHOT	Charter Hall Office Trust
CLP	Core Logistics Partnership
CPIF	Charter Hall Prime Industrial Fund
CPOF	Charter Hall Prime Office Fund
CPRF	Charter Hall Prime Retail Fund
LWHP	Long WALE Hardware Partnership
LWIP	Long WALE Investment Partnership
LWIP2	Long WALE Investment Partnership No. 2
RP1	Retail Partnership No.1
RP2	Retail Partnership No.2
RP6	Retail Partnership No.6

Direct Funds

BW Trust	BW Trust (Direct syndicate)
CDC	Charter Hall Direct CDC Trust
DIF2, DIF3, DIF4	Direct Industrial Fund series
DOF	Direct Office Fund
PFA	Charter Hall PFA Fund
VA	Charter Hall Direct VA Trust
DAT, DAT2	Charter Hall Direct Automotive Trust Series
Other
CAGR	Compound Annual Growth Rate
Cap Rate	Capitalisation Rate
FUM	Funds Under Management
NTA	Net Tangible Assets
OEPS	Operating Earnings per Security
PFM	Property Funds Management
PI	Property Investments
WACR	Weighted Average Cap Rate
WALE	Weighted Average Lease Expiry

50

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

Contact Us

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David Harrison Managing Director & Group CEO

Charter Hall Group

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

Sean McMahon Chief Investment Officer

Charter Hall Group

T: +61 2 02 8651 9147 sean.mcmahon@charterhall.com.au

Philip Cheetham Head of Listed Investor Relations

Charter Hall Group

T: +61 2 8651 9214 philip.cheetham@charterhall.com.au

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Russell Proutt

Chief Financial Officer

Charter Hall Group

T: +61 2 8651 9493

russell.proutt@charterhall.com.au

Richard Stacker

Group Executive - Global Investor Relations

Charter Hall Group

T: +61 2 8651 9260 richard.stacker@charterhall.com.au

51

Charter Hall | Charter Hall Group Full Year Results I 23 August 2017

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 30 June 2017 unless otherwise stated. All references to dollars ($) are to Australian dollars, unless otherwise stated.

52

Sydney Head Office Charter Hall | Le ~~vel 20, No.1 Martin Place~~ Sydney, NSW, 2000

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T: +61 2 8651 9000

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

Suite 604, 147 Pirie Street Adelaide SA 5000

T: +61 8 8417 5900

www.charterhall.com.au