CHARTER HALL GROUP — Annual Report 2018

Aug 21, 2018

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22 August 2018 Charter Hall Group 2018 Full Year Results

12 months to 30 June 2018

2 Market Street, Sydney NSW

Charter Hall Group I 2018 Full Year Results

2018 Full Year Results

Agenda

1. Group Highlights

2. Property Funds Management

3. Property Investment

4. Financial Result

5. Folkestone Acquisition

6. Outlook and Guidance

7. 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 Group I 2018 Full Year Results

Our Strategy 1. Group Highlights

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Coles, 2 Sturton Road SA

Charter Hall Group I 2018 Full Year Results

Group Highlights

Group highlights[1]

Group maintained $3.4bn of investment growth capacity

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Group returns Property Investments Funds Management Balance sheet
12.3%
$176m operating earnings 17.0% FUM growth 0.0% balance sheet
Total Property Investment
$250m statutory profit [2] to $23.2bn gearing [6]
Return [4]
5.0% OEPS $1.7bn Property $3.5bn in gross 27.3% look through
growth Investment portfolio transactions gearing [7]
30.7% OEPS growth
15.0% 6.3% Property Investment 4.3% Property Funds 6.1% NTA per security
Total Platform Return [3] yield Management yield [5] growth [8]
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1. Figures and statistics on this slide and throughout this presentation are for the 12 months to 30 June 2018 unless otherwise stated

2. Attributable to stapled securityholders

3. Total Platform Return is calculated as growth in net tangible assets (NTA) per security plus distributions per security divided by the opening NTA per security

4. Total Property Investment Return is calculated as distributions received from funds plus growth in investment value divided by the opening investment value of the PI portfolio. This excludes investments held for less than year and investments in Direct funds.

5. Property Funds Management (PFM) yield is calculated as PFM operating earnings per security divided by the opening NTA per security

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

7. Look through gearing calculated as Charter Hall’s look through debt (net of cash) / total assets (net of cash) of the PI Portfolio plus Charter Hall’s balance sheet

8. Net tangible assets per stapled security is calculated as assets less liabilities, net of intangible assets and related deferred tax.

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Charter Hall Group I 2018 Full Year Results

Group Highlights

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

Accessing equity from listed, wholesale and retail investors

Deploy

Creating value through attractive investment opportunities

Manage

Funds management, asset management, leasing and development services

Invest

Investing alongside our capital partners

1 YEAR

GROSS EQUITY RAISED GROSS FUM GROWTH INCREASE IN PI TO $1.7bn $1.7bn TRANSACTIONS $3.4bn $179m 11.7% $3.5bn PROPERTIES TOTAL PROPERTY INVESTMENT RETURN[2] ACQUISITIONS DIVESTMENTS 330 12.3% $2.5bn $1.0bn 3 YEAR GROSS EQUITY RAISED GROSS FUM GROWTH INCREASE IN PI TRANSACTIONS $5.5bn $9.6bn $762m 80.7% $12.5bn ADDITIONAL PROPERTIES TOTAL PROPERTY INVESTMENT RETURN[2] ACQUISITIONS DIVESTMENTS 55 22.5% $8.5bn $4.0bn 5 YEAR GROSS EQUITY RAISED GROSS FUM GROWTH INCREASE IN PI TRANSACTIONS $8.7bn $13.3bn $1.2bn 211.4% $17.9bn ADDITIONAL PROPERTIES TOTAL PROPERTY INVESTMENT RETURN[2] ACQUISITIONS DIVESTMENTS 131 14.0% $12.1bn $5.8bn

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Charter Hall Group I 2018 Full Year Results

Group Highlights

Operational highlights

Office

Industrial

Retail

126 LEASING DEALS EXECUTED ACROSS 156,000sqm

42 LEASING DEALS EXECUTED ACROSS 550,000sqm

485

LEASING DEALS EXECUTED ACROSS 81,000sqm

MAJOR PRE-LEASES TO VANGUARD, SA GOVERNMENT, CBUS AND BHP

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LEASES EXECUTED ACROSS

130 LONSDALE

56%

23,000sqm

TO MAJORS

PRE-LEASED

$2,151m

GROSS TRANSACTIONS

$393m

GROSS TRANSACTIONS

$1,001m

GROSS TRANSACTIONS WITH INCREASED NONCORE DIVESTMENTS AS WE CURATE PORTFOLIOS

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DEVELOPMENT PROJECTS COMPLETION VALUE $1.6bn

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DEVELOPMENT PROJECTS COMPLETION VALUE $1.7bn

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DEVELOPMENT PROJECTS DEVELOPMENT SPEND $329m

$4.3bn $682m $844m NEW AND REFINANCED DEBT FACILITIES[1] NEW AND REFINANCED DEBT FACILITIES[1] NEW AND REFINANCED DEBT FACILITIES[1]

1 Reflects new and refinanced debt facilities within CHC managed funds. In addition, during FY18, new and refinanced debt facilities at the Corporate level totalled $452m.

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Charter Hall Group I 2018 Full Year Results

Group Highlights

Sustained growth

5 year post-tax OEPS growth of 10.5% per annum

Operating earnings per security growth[1]

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Distributions per security growth
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Pre-tax OEPS
Post-tax OEPS
43.5cps
40.5cps
37.7cps
35.9cps
30.4cps
27.5cps
25.3cps
22.9cps
FY13 FY14 FY15 FY16 FY17 FY18
10.4% 8.5% 10.5% 18.1% 5.0%
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2
DPS (grossed up)
DPS
36.9cps
30.0cps
31.8cps
26.9cps
24.2cps
22.3cps
20.2cps
FY13 FY14 FY15 FY16 FY17 FY18
10.4% 8.5% 11.1% 11.5% 6.0%
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1. Operating earnings per security prior to FY14 restated to include security-based benefits expense

2. Grossed up distribution includes franking credits of 5.1cps paid to securityholders in FY18

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Charter Hall Group I 2018 Full Year Results

2. Property Funds Management

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2 Hume Highway, Chullora NSW

Charter Hall Group I 2018 Full Year Results

Property Funds Management

Group Funds Management portfolio

			Portfolio Value	Lettable Area	No. of	No. of	Gross Income	WALE1	Occupancy	WACR2
			($bn)	(m sqm)	Properties	Tenants	($m)	(years)	(%)	(%)
30	Jun	18	23.2	5.4	330	2,447	1,634	7.7	98.1	5.74
30	Jun	17	19.8	5.1	329	2,658	1,454	7.7	98.0	6.07

Diversification by equity source Asset type diversification WALE by sector

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Retail
Equity 9.7
Shopping Centre
$2.9bn
Retail
12%
$3.8bn 8.1
16%
Office
$11.1bn 6.3
48%
Listed
Long WALE
Fund Wholesale
Retail
$4.4bn Equity
19% $23.2bn $15.9bn $23.2bn $2.3bn
10%
69%
Industrial
$6.1bn
Office Retail Industrial
26%
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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 Group I 2018 Full Year Results

Property Funds Management

Funds under management growth

5 year FUM growth of 18.6% per annum

Funds under management movement ($bn)

Funds under management by equity source ($bn)

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Wholesale Listed Retail
$23.2bn
$2.9bn
$19.8bn
$0.7bn $23.2bn $4.4bn
$17.5bn $2.8bn
($1.0bn) $1.2bn
$2.5bn
$2.5bn $4.1bn
$15.9bn
$13.6bn
$2.5bn
$11.5bn $1.9bn
$12.9bn
$12.4bn
$19.8bn $9.9bn $1.7bn $2.2bn
$1.7bn $2.0bn
$9.5bn
$1.8bn
$7.8bn
$6.5bn
Jun-17 Acquisitions Divestments Net Capex Jun-18 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18
revaluations
16.1% 18.0% 28.7% 13.7% 17.0%
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Charter Hall Group I 2018 Full Year Results

Property Funds Management

Property Investment portfolio returns

• 1

• • The Property Investment Portfolios total property return over the five years to 30 June 2018 is 14.0% per annum, outperforming the MSCI/IPD Unlisted Wholesale Property Fund Index (NAV post fees) which returned 11.1% over the same period

• The below chart shows the total property return of each core Property Investment relative to its sector specific MSCI/IPD index

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19.3%
17.6%
13.9% 14.0%
13.3% 13.3% 12.8% 13.1%
12.1%
11.7% 11.7%
11.1% 11.1% 11.2% 11.1%
9.9%
9.4% 9.4% 9.4%
9.0%
CHOT CPOF CPIF CLP LWHP LWIPs Wholesale SC CQR CLW CHC
2013 to 2018 2013 to 2018 2013 to 2018 2013 to 2018 2013 to 2018 2014 to 2018 2013 to 2018 2013 to 2018 2017 to 2018 2013 to 2018
Office Office Industrial Industrial Retail Retail Retail 2 Retail Diversified Diversified
CHC Total Return (% p.a.) MSCI/IPD Benchmark (% p.a.)
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1. Total Property Investment Return is calculated as distributions received from funds plus growth in investment value divided by the opening investment value of the Property Investment Portfolio. This excludes investments held for less than a year and investments in Direct funds.

2. Includes CHC’s investments in Wholesale Shopping Centre (SC) Funds RP2, RP6 and CPRF

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Charter Hall Group I 2018 Full Year Results

Property Funds Management

FY18 transactional activity

• Consistent transaction volume across core sectors

• Average acquisition value of $74m versus average divestment value of $26m

($m)	Office	Industrial	Long WALE Retail	Shopping Centre Retail	Total
Acquisitions	1,528	371	293	333	2,525
Divestments	(623)	(22)	(38)	(337)	(1,020)
Net transactions	905	349	255	(4)	1,505
Gross transactions	2,151	393	331	670	3,545

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2 Market Street, Sydney Coca Cola Amatil, Richlands QLD 231 Elizabeth Street, Sydney NSW Hastings Deering, Acacia Ridge QLD
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Charter Hall Group I 2018 Full Year Results

Property Funds Management

Development activity Continues to drive asset creation and attract capital

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

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

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

• • Average committed project size of $270m for office, 1

• $81m for industrial and $41m for retail

• Total pipeline includes 35 office, industrial and retail projects

Development activity (completion value $m)	Committed projects	Uncommitted projects2	Total pipeline3
Office	1,048	571	1,619
Industrial	568	1,132	1,700
Retail1	98	231	329
Total / weighted average	1,714	1,934	3,648

1. Reflects development spend only and excludes existing centre value

2. Includes potential end value of uncommitted development projects

3. $1.2bn included in FUM at 30 June 2018

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Charter Hall Group I 2018 Full Year Results

Property Funds Management

Equity flows

Diversified equity sources with $1,701m gross equity raised in the 12 months to 30 June 2018:

• Across the Group, six pooled unlisted funds continue to raise new equity

• $971m raised in Wholesale Funds and Partnerships with further equity raising underway in CPOF and CPIF

• $653m raised in unlisted Direct Funds

($m)	FY15	FY16	FY17	FY18
Wholesale Pooled Funds	653	606	776	649
Wholesale Partnerships	598	467	217	322
Listed Funds1	274	76	988	77
Direct Funds2	180	318	355	653
Gross equity raised	1,714	1,467	2,336	1,701
Net equity raised	1,297	1,099	1,689	1,487

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 Group I 2018 Full Year Results

3. Property Investment

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1 Shelley Street, Sydney NSW

Charter Hall Group I 2018 Full Year Results

Property Investment

Property Investment portfolio

			Portfolio Value	No of	WALE	Occupancy	WARR1	WACR	WADR2
			($m)	Properties	(years)	(%)	(%)	(%)	(%)
30	Jun	18	1,706	298	7.2	97.9	3.6	5.80	7.1
30	Jun	17	1,527	292	7.4	97.7	3.6	6.09	7.3

Diversification by Property Investment

Diversification by sector

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DCSF Wholesale SC
CLW $57m $89m Shopping
$195m Centre Retail
CQR 24%
CCT $328m Office
$11m
40%
BSWF
$102m
$1,706m $1,706m
LWHP
CHOT $85m
$246m
LWIPs Long WALE
$32m Retail
11%
CLP
$149m
CPOF CPIF
$259m DIF4 $121m Industrial
$31m
25%
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1. WARR is the weighted average rent review and is weighted by gross income

2. WADR is the weighted average discount rate and is weighted by the Investment value of each Property Investment

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Charter Hall Group I 2018 Full Year Results

Property Investment

Property Investment portfolio movement

• During the 12 months to 30 June 2018 the Property Investment Portfolio increased by 11.7% (+$179m) to $1,706m

• The decrease in yield has been driven by the improved quality and WALE of the Portfolio, together with compressing cap rates

• The Property Investment yield remains attractive at 6.3%

Property Investment movement

Property Investment portfolio yield

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$98m ($20m)
$1,706m
$65m
$37m ($1m)
$1,527m
Jun 17 Office Industrial Long Change in Other Jun 18
WALE valuation
Retail
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$1,706m 10.0%
$1,527m
8.0%
$1,098m
6.0%
$944m
$720m
4.0%
$548m
2.0%
0.0%
Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18
PI Portfolio ($m) PI Yield (%)
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Charter Hall Group I 2018 Full Year Results

Property Investment

Diversified earnings resilience

Top 10 asset exposures represent only 15.3% of earnings

• 65% repeat customers across 1,380 leases

• Tenant retention rate of 77.4% in FY18

Top 10 tenants by gross income Property Investment earnings (by Sector)

Top 10 asset exposures[1]

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Wesfarmers 13.8% # 1 2.3%
Woolworths 9.8% # 2 2.2%
Shopping
Centre
Government 7.3% Retail # 3 2.1%
Office 28%
Commonwealth Bank 4.3% 38% # 4 1.7%
Telstra 3.7% # 5 1.5%
Suncorp 2.2% # 6 1.4%
Macquarie Bank 1.8% Long WALE # 7 1.3%
Retail
10%
JBS 1.4% # 8 1.0%
Industrial
Allianz 1.2% # 9 0.9%
24%
Inghams 1.1% # 10 0.9%
1.
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1. Asset exposure measured as Gross income of property, weighted for CHPT ownership stake, divided by post-tax OEPS

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Charter Hall Group I 2018 Full Year Results

Property Investment

Sustainability

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

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

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

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

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

Our People: Our Places: Our Partnerships

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Gave 330 days of our People’s time with 81% of employees volunteering in the community

Contributed

$600,000 for community programs and services

$1.3 Million or 46,054qm in space

INNOVATION

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

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

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Charter Hall Group I 2018 Full Year Results

4. Financial Result

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231 Elizabeth Street, Sydney NSW

Charter Hall Group I 2018 Full Year Results

Financial Result

Earnings Summary

• Operating profit after tax of $175.8m, up 16.2%

• PI operating earnings of $103.9m, up 22.2%

• PFM operating earnings pre-tax of $98.9m, up 15.4%

• OEPS post-tax growth of 5.0% to 37.7cps

• OEPS pre-tax growth of 7.4% to 43.5cps

• DPS growth of 6.0% to 31.8cps comprising:

• 20.1cps distribution from Charter Hall Property Trust (CHPT)

• 11.7cps fully franked dividend from Charter Hall Limited (CHL)

  • 5.1cps of franking credits distributed

	($m)	FY18	FY17	Change %
	PI operatingearnings	103.9	85.0	22.2%
	PFM operatingearningspre-tax	98.9	85.7	15.4%
	Operating earnings pre-tax	202.8	170.7	18.8%
	Tax	(27.0)	(19.5)	38.5%
	Operating earnings post-tax	175.8	151.2	16.2%
	Change in PropertyInvestment valuation1	98.4	118.3	(16.8%)
	Amortisation and impairment of intangibles	(2.7)	(4.3)	(37.2%)
	Reversal/(impairment)of investment injoint venture	7.3	(10.5)	169.5%
	Other non-operatingitems	(28.6)	2.9	(1086%)
	Total non-operating items	74.4	106.4	(30.1%)
	Statutory profit after tax	250.2	257.6	(2.9%)
	OEPSpre-tax(cps)	43.5	40.5	7.4%
	OEPSpost-tax(cps)	37.7	35.9	5.0%
	DPS(cps)	31.8	30.0	6.0%
	Distributionpayout ratio	84%	83%	0.9%

1. Includes the Group's proportionate share of non-operating items of equity accounted investments on a look through basis and investments held at fair value through profit and loss

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Charter Hall Group I 2018 Full Year Results

Financial Result

Segment result

• Both PI and PFM segments contributed to growth in earnings in FY18

• PI EBITDA growth driven by:

• Growth in Property Investments Portfolio

• 3.6% WARR across Property Investments Portfolio

• Strong market rental reversions in Office

• PFM EBITDA growth driven by:

• PFM revenue growth of 12.6% outpacing total PFM expense growth of 10.4%

	($m) Property Investment EBITDA	FY18 102.8	FY17 83.8	Change % 22.8%
	PFM EBITDA	102.4	89.2	14.7%
	EBITDA	205.2	173.0	18.6%
	Depreciation	(3.5)	(3.5)	(0.4%)
	Interest income	1.1	1.2	(12.4%)
	Operating earnings pre-tax	202.8	170.7	18.8%
	Tax	(27.0)	(19.5)	(38.5%)
	Operating earnings post-tax	175.8	151.2	16.2%
	PI Yield	6.3%	6.9%	(0.6%)
	PFM Yield	4.3%	5.1%	(0.8%)
	PFM EBITDA Margin1	50.9%	49.9%	1.0%

1. PFM EBITDA Margin calculated as PFM EBITDA divided by PFM revenue

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Charter Hall Group I 2018 Full Year Results

Financial Result

Property funds management composition

• PFM revenue up 12.6% to $201.0m

• Investment management revenue up 9.5% to $144.3m: – Diversified contribution to investment management fees from all funds and partnerships

• – Continued momentum in FUM driving funds management

• – Transaction fees earned from active acquisition and divestment program

• – Outperformance driving performance fees

• • Property services revenue up 21.1% to $56.7m: – Increased development activity across office and industrial underpinning growth in development related fees

	($m)	FY18	FY17	Change%
	Fund management fees	88.0	75.0	17.4%
	Transaction and performance fees	56.3	56.7	(0.7%)
	Investment management revenue	144.3	131.7	9.5%
	Property management fees	14.8	16.4	(9.7%)
	Development management fees Leasing fees	19.1 18.3	11.3 14.8	69.0% 23.6%
	Facilities and project management fees	4.5	4.2	7.1%
	Property services revenue	56.7	46.8	21.1%
	PFM revenue	201.0	178.5	12.6%
	PFM expenses	(71.6)	(65.1)	(9.9%)
	Corporate expenses	(27.0)	(24.2)	(11.5%)
	Total PFM expenses PFM EBITDA	(98.6) 102.4	(89.3) 89.2	(10.4%) 14.7%

• Successful leasing activity supporting high occupancy

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Charter Hall Group I 2018 Full Year Results

Financial Result

Operating cashflow

• FY18 distribution covered 114% by operating cashflow

• The cashflow variance between FY18 operating earnings and operating cashflow is primarily driven by timing and includes:

• Timing of cash payment of Property Investment distributions

• Non cash items primarily depreciation

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$176m ($10m)
($3m)
$6m
$169m
$148m
Operating Earnings Earnings vs distributions Non-cash items Change in working Operating Cashflow Distribution
received capital
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Charter Hall Group I 2018 Full Year Results

Financial Result

Balance sheet and return metrics

• Strong balance sheet maintained:

• Considerable financial flexibility with undrawn lines and cash in hand

• NTA per security growth of 6.1% to $3.82

• Strong return metrics on capital employed in the business

	($m)	30 June 2018	30 June 2017
	Cash	95	174
	Property investment	1,706	1,527
	Other assets	150	106
	Intangibles	63	65
	Total assets	2,014	1,873
	Total liabilities	156	151
	Total equity	1,858	1,722
	NTA per stapled security1	$3.82	$3.60

Return metrics	30 June 2018	30 June 2017
Returnonequity (pre-tax)2	12.1%	13.3%
Returnonequity (post-tax)2	10.5%	11.6%
Totalpropertyinvestmentreturn3	12.3%	19.8%
Totalplatform return4	15.0%	27.6%

Note: Balance sheet presented is the consolidated balance sheet of CHC which includes Charter Hall Direct Diversified Consumer Staples Fund (DCSF) at 100%

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

2. Return on equity is calculated as total operating earnings pre-tax/post tax per security divided by the opening NTA per security

3. Total Property Investment (PI) Return is calculated as growth in the PI portfolio value plus distributions received divided by the weighted average PI portfolio value

4. Total Platform Return is calculated as growth in net tangible assets (NTA) per security equity plus distribution per security divided by the opening NTA per security

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Charter Hall Group I 2018 Full Year Results

Financial Result

Debt and capital management

• Headstock capital structure repositioned in FY18

• All borrowings moved to unsecured format

• Corporate investment grade credit rating of Baa1 from Moody’s

• Corporate facility expanded to $200m plus a separate $20m bank guarantee line extended to May 2023

• 10 year, US$175m (A$231.5m) US Private Placement which is due to settle on 24 August 2018

• Group wide capital portfolio continues to deliver in line with strategy

• Substantial funding capacity available across the Group with $3.4bn of available liquidity

• $6.4bn of new and refinanced debt facilities agreed in FY18 with no material maturities in FY19

	Key debt metrics funds platform Combined fund facilitylimits($m)	30 June 2018 10,256	30 June 2017 8,611
	Combined fund undrawn debt ($m)	2,870	2,313
	Totalgroupcash($m)	526	679
	Look throughgearing (%)	27.3%	20.1%
	Look through weighted average debt maturity (yrs) 1 Look through weighted average cost of debt2	4.3 4.17%	4.3 4.09%
	Lookthrough interestratehedging (%)	56%	65%

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

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$5bn
$4bn
$3bn
31.9%
$2bn
39.2%
$1bn
27.4%
- 0.0% 36.1%
Corporate 3 Office Retail Industrial Diversified
Drawn Debt Undrawn Debt
Debt Facility ($m)
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1. 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 3. Includes undrawn USPP $231.5m

26

Charter Hall Group I 2018 Full Year Results

5. Folkestone Acquisition

27

Only About Children, Hawthorn, VIC

Charter Hall Group I 2018 Full Year Results

Folkestone Acquisition

Folkestone acquisition overview An ASX listed diversified real estate group

• Folkestone Limited (ASX: FLK) is a diversified real estate fund manager and developer, listed on the ASX on 14 June 2000

• 1

• • Charter Hall has agreed to acquire all the shares in FLK for $205m , to be funded with current available investment capacity (>$500m)

• Similar to CHC’s business model, the funds management platform comprises of listed, unlisted and direct retail funds, with both private clients and institutional capital

• FLK’s balance sheet capital is focused on strategic co-investments with:

• The majority invested in Folkestone Education Trust (ASX: FET), the largest landlord within the early learning sector; and

• Investment in social infrastructure, office, retail, industrial and residential sectors with selective development activity

• FLK expands Charter Hall’s investible universe into social infrastructure in the early learning sector which is highly fragmented with low institutional participation, underpinned by high quality covenants and long WALE triple net leases

• Early learning is a growth sector - a government subsided education and labour supply mechanism for the economy, underpinned by population growth and workforce participation

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FET
Funds management Development
Co-investment and
~$1.6bn FUM investments
management rights
Unlisted
Unlisted
Unlisted value-add / Non-active
FET & other FET fund Maxim funds Seniors Living
income funds development Active (subject to
co-investments ~$1.03bn FUM ~$113m FUM fund
~$235m FUM funds planning)
~$60m FUM
~$170m FUM
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1 Excludes c.1.4m CHC service rights (subject to CHC share price) to be issued to FLK management (excluding Greg Paramor) vesting over 3 years

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Charter Hall Group I 2018 Full Year Results

Folkestone Acquisition

FET Overview

FET is an ASX listed A-REIT and the largest owner of early learning properties with 410 properties

Business description

• FET is a specialist early learning property owner which owns 410 properties primarily located in metropolitan areas

  • Also owns a 3.9% stake in Arena and a 15% stake in Folkestone’s CIB Fund[1]

• Strong operator profile, with 29 tenants across the portfolio

• Goodstart accounts for 50% of rent, with top 5 tenants accounting for ~80%

• Majority of leases are triple net – net effective rents

• Track record of developing centres and has a pipeline of $170.3m

Portfolio overview[2]

ortfolio overview2
Total assets		$1.03bn
NTA	$2.78 ps / $711m
Number of assets		410
Number of tenants		29
Passing yield		6.3%
Occupancy		100%
WALE		9.9
Rental growth (like for like)		2.8%
Development pipeline		$170.3m
Co-investments	CIB1: 15% / $17.3m ARF: 3.9% / $22.3m

Key tenants (% annual rent)

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Other
14%
Mission
Australia
3%
Avenues Early
Learning
6% Goodstart Early
Learning
Best Start 50%
8%
G8 Education
8%
Only About
Children
11%
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Locational diversification

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Regional
32%
Metropolitan
68%
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1. Closed end wholesale fund with a portfolio of 24-hour police stations and law courts managed by FLK 2. 30 June 2018 numbers as reported by FET

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Charter Hall Group I 2018 Full Year Results

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3

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Folkestone Acquisition

Investment rationale

Folkestone acquisition will provide $1.6bn of incremental FUM and accretive earnings with a new growth pathway for CHC in the early learning and social infrastructure sectors

1

Adds $1.6bn of FUM to CHC’s funds management platform

Diversified FUM business model with strong management team complimenting CHC’s existing platform

Sector diversification – enters social infrastructure and early learning

Diversifies into the growing early learning sector, which is highly fragmented with low institutional participation. FET, the leading industry landlord, is underpinned by high quality covenants and long WALE triple net leases

Earnings accretion and attractive return on investment

Delivers FY19 OEPS accretion underpinned by high quality fund composition and substantially de-risked development investments, which generates an attractive return on investment

Platform integration benefits

Strategic alignment and expanded customer base via access to FLK’s network of high net worth investors for CHC’s Direct business

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Charter Hall Group I 2018 Full Year Results

Folkestone Acquisition

Group Funds Management portfolio post-transaction

	Portfolio Value	No. of Properties1	**WALE1 **	Occupancy1	WACR1
	($bn)		(years)	(%)	(%)
Pre	23.2	330	7.7	98.1	5.74
Post	24.8	757	7.8	98.2	5.78
Impact	+1.6	+427	+0.1	+0.1	+0.04

Diversification by equity source

Asset type diversification[2]

WALE by sector

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Social infrastructure
Other $1.2bn Shopping 9.7 9.8
Listed $0.3bn 5% Centre Retail
$5.4bn 1% $3.8bn 8.1
22% 15%
Long WALE 6.3
Retail
$2.3bn
9%
$24.8bn
$24.8bn
Office
Direct
$11.1bn
$3.4bn
45%
14% Wholesale
$16.1bn
65%
Industrial
$6.1bn
25% Office Retail Industrial Social
infrastructure
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• 1 Excludes Folkestone development investments and securities funds 2 Other reflects securities funds, hotels and seniors living

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Charter Hall Group I 2018 Full Year Results

Folkestone Acquisition

Property Investment portfolio post-transaction

	PI Portfolio Value	No. of Properties	WALE	Occupancy	WARR	WACR
	($m)		(years)	(%)	(%)	(%)
Pre	1,706	298	7.2	97.9	3.6	5.80
Post	1,791	708	7.3	98.0	3.6	5.82
Impact	+85	+410	+0.1	+0.1	-	+0.02

Diversification by Property Investment

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FET
DCSF Wholesale SC
$85m
$57m $89m
CLW
$195m
CQR
CCT $328m
$11m
BSWF
$102m
$1,791m LWHP$85m
LWIPs
CHOT $32m
$246m
CLP
$149m
CPOF CPIF
$259m DIF4 $121m
$31m
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Diversification by sector

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Social
infrastructure
$85m
5% Shopping Centre
Retail
$417m
23%
Office
$680m
38% $1,791m Long WALE
Retail
$190m
11%
Industrial
$420m
23%
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Charter Hall Group I 2018 Full Year Results

Folkestone Acquisition

Timetable

Process	Date
First court hearing to approve scheme booklet dispatch to Folkestone shareholders	Mid September 2018
Dispatch scheme booklet to Folkestone shareholders	Mid September 2018
Scheme meeting for Folkestone shareholders	Mid October 2018
Second court hearing to approve scheme meeting for Folkestone shareholders	Mid/late October 2018
Transaction completion (if approved)	Early November 2018

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Charter Hall Group I 2018 Full Year Results

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Charter Hall Group I 2018 Full Year Results

Outlook & Guidance

FY19 earnings guidance

We believe the property market landscape will continue to accommodate growth

• Asset growth is expected in submarkets that are underpinned by favourable property fundamentals where there is effective rental growth

• Continued equity flows expected for fund managers with strong track records

Our guidance is as follows:

Based on no material change in current market conditions, our FY19 guidance is for 5-7% growth in post-tax operating earnings per security over FY18

On the basis the FLK transaction is completed, our FY19 guidance is for 8-10% growth in post-tax operating earnings per security over FY18

The distribution payout ratio is expected to be between 85% and 95% of operating earnings per security post-tax

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9 Castlereagh Street, Sydney NSW
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Charter Hall Group I 2018 Full Year Results

7. Additional information - Property Funds Management - Property Investment

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Charter Hall Group I 2018 Full Year Results

Appendix 7.1 Property Funds Management

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

Charter Hall Group I 2018 Full Year Results

Appendix – Property Funds Management

Charter Hall group property overview[1]

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2 83
Properties valued at $0.1bn Properties valued at $4.7bn
Office 0 Office 13
Retail 1 Retail 46
Industrial 1 Industrial 24
NT
QLD 101
45
Properties valued at $9.5bn
Properties valued at $2.6bn
WA Office 15
Office 5
Retail 52
Retail 25
SA Industrial 34
Industrial 15
NSW
ACT
16
VIC
Properties valued at $0.9bn
Office 3 75 7
Retail 8 Properties valued at $5.2bn Properties valued at $0.3bn
TAS
Industrial 5 Office 12 Office 1
Retail 28 8 Retail 5
Industrial 35 Industrial 1
1. Excludes one New Zealand asset
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Charter Hall Group I 2018 Full Year Results

Appendix – Property Funds Management

Charter Hall managed funds

Office $11.0bn Industrial $6.1bn

Retail $6.1bn

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CHOT CPOF [1] BSWF [1] CLP CPIF LWHP RP2 LWIPs [3]
$2.9bn $4.5bn $0.6bn $1.6bn $3.0bn $1.0bn $0.1bn $0.6bn
CCT Mandates RP6 Mandates CPRF
$0.5bn $0.5bn $0.3bn $0.3bn $0.3bn
DOF PFA DIFs/CDC DCSF [2] DAT DAT2 DCSF [2]
$1.3bn $0.4bn $0.8bn $35m $0.1bn $0.1bn $28m
BW Trust
$0.1bn
CLW [2] CLW [2] CQR CLW [2]
$0.5bn $0.7bn $2.9bn $0.4bn
Equity
Wholesale
Retail Equity
Listed Equity
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Note Statistics on this page may not add due to rounding

• 1 CPOF holds 49.9% of the units in the Brisbane Square Wholesale Funds (BSWF)

• 2 Diversified across the Office, Industrial and Retail sectors

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

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Charter Hall Group I 2018 Full Year Results

Appendix – Property Funds Management

Office

“We create high-quality workplace environments for tenant customers and enhanced returns for our investors through actively managing, developing and acquiring assets to create one of the highest performing office property portfolios in Australia.”

ADRIAN TAYLOR

OFFICE CEO

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FUM PROPERTIES $ 11.1 bn 49

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OCCUPANCY 98.2 %

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WALE 6.3 yrs

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CAP RATE 5.46 %

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CHC INVESTMENT $ 680 m

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Charter Hall Group I 2018 Full Year Results

Appendix – Property Funds Management

Industrial

“As a leading industrial and logistics property group in Australia we create, own and manage a geographically diverse property portfolio that meets the strategic needs of our tenant customers while also meeting the long term return objectives of our investors.”

RICHARD STACKER INDUSTRIAL CEO

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FUM $6.1bn

PROPERTIES 116

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OCCUPANCY 98.0%

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WALE 9.7 yrs

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CAP RATE CHC INVESTMENT 6.07% $420m

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Charter Hall Group I 2018 Full Year Results

Appendix – Property Funds Management

Retail

“As the leading owner and manager of convenience based Retail and with a portfolio of supermarket anchored shopping centres, hardware, automotive showrooms and hospitality assets, we are focused on optimizing performance and providing a secure and growing income stream for our investors.”

GREG CHUBB RETAIL CEO

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FUM $6.1bn

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PROPERTIES OCCUPANCY 165 97.9%

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WALE 8.1 yrs

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CAP RATE CHC INVESTMENT 5.93% $607m

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Charter Hall Group I 2018 Full Year Results

Appendix – Property Funds Management

Charter Hall Direct

“Charter Hall Direct Property is Australia’s leading direct property fund manager, with $3 billion of real estate assets under management. We have a strong track record managing unlisted property funds and syndicates since 1995 and our products are consistently highly rated by external research groups.”

STEVEN BENNETT

HEAD OF DIRECT PROPERTY

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FUM PROPERTIES $3.0bn 54

OCCUPANCY 99.6%

WALE CAP RATE CHC INVESTMENT 9.3yrs 6.09% $89m

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Charter Hall Group I 2018 Full Year Results

Appendix – Property Funds Management

Direct funds net returns since inception

The active Direct Funds have returned 12.9% p.a. outperforming the benchmark[1] by 1.7%

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19.4%	19.4%	19.4%	19.4%	19.4%	19.4%	19.4%	19.4%	19.4%	19.4%	19.4%	19.4%	19.4%
13.2% 12.2% 11.5% 9.5% 11.0% 12.3% 11.6% 11.7%						13.3% 11.8% 9.3% 13.3% 17.4% 18.1% 11.5% 11.9% 12.0% 11.5% 10.7% 10.4% 12.1%
DIF2 2013-2018 Australian Industrial	DIF3 2014-2018 Australian Industrial	DIF4 2016-2018 Australian Industrial	CDC Trust 2014-2018 Adelaide Industrial	BW Trust 2014-2018 Australian Retail			DAT 2015-2018 Australian Retail	DAT2 2016-2018 Australian Retail	Workzone 2014-2018 Perth Office	PFA (Original) 2012-2018 Australian Office	DOF (Ordinary) 2010-2018 Australian Office	DOF (WSA) 2014-2018 Australian Office
Net Return (% p.a.) Benchmark (% p.a.)

1. Benchmark refers to the MSCI/IPD Unlisted Core Wholesale Property Fund Index

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Charter Hall Group I 2018 Full Year Results

Appendix 7.2 Property Investment

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1 Shelley Street, Sydney NSW

Charter Hall Group I 2018 Full Year Results

Appendix – Property Investment

Property Investment portfolio

	Ownership Stake (%)	Charter Hall Investment ($m)	Charter Hall PI Income ($m)	WALE (years)	WACR (years)	WADR (%)	WARR (%)	PI Yield2 (%)
Office		620.1	34.1	5.5	5.39%	6.8%	3.8%	6.1%
Charter Hall Prime Office Fund(CPOF)	8.4%	258.8	13.2	6.2	5.32%	6.8%	3.9%	5.6%
Charter Hall Office Trust(CHOT)	15.7%	246.4	13.4	4.3	5.23%	6.7%	3.9%	6.3%
Brisbane Square Wholesale Fund(BSWF)	16.8%	102.1	6.9	8.3	5.94%	7.1%	3.5%	6.7%
Counter Cyclical Trust(CCT)	5.0%	11.2	0.5	5.3	5.63%	7.0%	3.7%	8.9%
Workzone Trust(Workzone)	2.0%	1.4	0.1	7.2	7.13%	7.5%	4.0%	9.0%
Charter Hall PFA Fund (PFA)	0.1%	0.2	0.0	8.2	6.99%	7.7%	3.4%	7.4%
Industrial		300.7	17.3	9.9	6.01%	7.3%	3.0%	6.0%
Core Logistics Partnership (CLP)	13.8%	148.8	8.6	10.4	5.99%	7.3%	3.0%	6.2%
Charter Hall Prime Industrial Fund(CPIF)	5.9%	121.0	6.5	8.9	5.95%	7.2%	3.1%	5.5%
Direct Investment Trust No. 4 (DIF4)	16.4%	30.8	2.2	11.1	6.31%	7.6%	3.0%	7.0%
Retail		533.7	34.1	6.5	5.95%	7.3%	3.9%	6.7%
Charter Hall Retail REIT(CQR)1	18.7%	327.6	23.0	6.6	6.15%	7.3%	4.2%	7.2%
LongWALE Hardware Partnership (LWHP)	12.9%	85.5	3.6	8.9	5.49%	7.1%	2.9%	5.0%
Charter Hall Prime Retail Fund(CPRF)1	38.0%	45.7	2.9	4.0	5.75%	7.5%	4.3%	6.4%
Retail PartnershipNo. 6(RP6)1	20.0%	36.7	2.1	4.5	5.59%	7.8%	3.6%	6.1%
LongWALE Investment Partnership (LWIP)	5.0%	21.1	1.4	16.3	5.89%	7.2%	2.0%	7.1%
LongWALE Investment Partnership2(LWIP2)	10.0%	10.5	0.7	17.0	5.91%	7.3%	2.0%	7.0%
Retail Partnership No. 2 (RP2)1	5.0%	6.5	0.4	4.9	5.75%	7.3%	4.4%	6.5%
Diversified		251.7	14.9	10.5	6.26%	7.4%	2.9%	6.3%
Charter Hall LongWALE REIT(CLW)	20.4%	195.2	11.8	10.8	6.13%	7.3%	2.9%	6.5%
Discretionary Consumer Staples Fund (DCSF)	61.3%	56.5	3.1	8.6	6.69%	7.8%	2.9%	5.6%
Property Investment Total		1,706.1	100.43	7.2	5.80%	7.1%	3.6%	6.3%

• 1 Refers to contracted weighted average rent reviews of the specialty tenants only

• 2 PI Yield is calculated as operating earnings divided by weighted average investment during the period. Excludes MTM movements in NTA during the year 3 Excludes CIP PI earnings of $3.5m

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Charter Hall Group I 2018 Full Year Results

Appendix – Property Investment

Charter Hall Retail REIT (ASX:CQR)

Key events during FY18

• Acquired Salamander Bay, NSW and Highfields Village, QLD for the combined consideration of $215.5m and Gateway Plaza, Vic post balance date for 1

• $58.5m

1

• Divested 15 non-core assets for $309.0m

• Lake Macquarie/Mount Hutton redevelopment construction well advanced and Wanneroo Aldi opened June 2018

• Repaid and cancelled $50m debt facility maturing in July 2018 while introducing two new banks to the fund with FY24 expiries

	Key metrics
	Grosspropertyassets3 Total debt Gearing (balance sheet)4 Number of assets3 Occupancy (weighted byGLA)	$2.9bn $1.1bn 32.7% 59 98.1%
	WALE	6.6
	WACR	6.2%
	WARR5 Charter Hall interest Charter Hall co-investment	4.2% 18.7% $327.6m

• Weighted average debt maturity of 5.42 years with no debt maturing until FY21

Debt expiry profile[2] (by facility limit)

Geographic allocation (by GAV)

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SA NT
ACT
4% 1%
4%
VIC
10%
NSW
48%
WA
16%
QLD
17%
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$285m
$252m
$210m
$177m
$150m $125m
FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28+
Syndicated Bank Debt Bi-lateral Bank Debt USPP's JV's Undrawn
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• 1 Acquisitions and divestments calculated at CQR’s share

• 2 June 2018 pro-forma post funding of two new debt facilities and cancellation of $125m of Tranche C syndicated debt facility

• 3 Includes CQR’s ownership of the acquisition of Gateway Plaza post balance date

• 4 June 2018 pro-forma balance sheet gearing post asset acquisitions and disposals post balance date

• 5 Refers to contracted weighted average rent reviews of the specialty tenants only

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Charter Hall Group I 2018 Full Year Results

Appendix – Property Investment

Charter Hall Office Trust (CHOT)

Key events during FY18

• Equity return – 22.2% for 12 months to June 2018 (unit price, post final performance fee forecast)

• Valuations – valued at $2.9bn at 30 Jun-18 representing an increase of $114.0m or 4.2% against the Dec-17 external valuations

• Leasing – major lease secured over 5,287sqm (51% of NLA) for 12 years at Capital Hill with balance of building in advance discussions

	Key metrics
	Grosspropertyassets Total drawn debt Gearing (balance sheet)	$2.9bn $1.2bn 40.7%
	Number of assets	10
	Occupancy	98.3%
	WALE WACR WARR	4.3 5.2% 3.9%
	Charter Hall interest	15.7%
	Charter Hall co-investment	$246.4m

Debt expiry profile (by facility limit)

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$800m
$500m
FY18 FY19 FY20 FY21 FY22+
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Geographic allocation (by GAV)

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WA - 1%
VIC - 24%
QLD - 8%
NSW - 66%
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Charter Hall Group I 2018 Full Year Results

Appendix – Property Investment

Charter Hall Prime Office Fund (CPOF)

Key events during FY18

	Key metrics
	Grosspropertyassets	$4.5bn
	Total debt	$1.2bn
	Gearing (balance sheet)	24.4%
	Number of assets	24
	Occupancy	98.5%
	WALE WACR	6.2 5.3%
	WARR	3.9%
	Charter Hall interest	8.4%
	Charter Hall co-investment	$258.8m

• The Fund returned 15.8% in the 12 months to 30 June 2018, outperforming the MSCI / IPD Unlisted Wholesale Core Office Index benchmark (15.1%) over the same period and has consistently outperformed this benchmark over 3, 5 and 10 years

• The Fund’s Gross Asset Value (GAV) was $4.5bn at 30 June 2018, reflecting a net revaluation increase of $171m or +3.9% against the prior book value

• Settlement of 231 Elizabeth Street, Sydney and 2 Market Street, Sydney

• Practical completion of developments at 900 Ann Street, Brisbane and 105 Phillip St, Parramatta

• The Fund successfully priced a $413.3m US private placement, with a 9 year tenor, further diversifying CPOF’s sources of debt whilst lengthening its weighted average debt maturity

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Geographic allocation (by GAV)
WA
SA 10%
1%
NSW
45%
VIC
24%
QLD
19%
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Debt expiry profile (by facility limit)

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713
400 400 400
1
FY20 FY21 FY22 FY23+
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1 FY23+ includes $413m in US Private placements, to be funded in September 2018

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Charter Hall Group I 2018 Full Year Results

Appendix – Property Investment

Charter Hall Long WALE REIT (ASX:CLW)

Key events during FY18

• Operating EPS and DPS of 26.4 cents for the period, reflecting 3.9% annual 1 growth

• Continue to improve portfolio tenant and geographic diversification, further increasing Eastern Seaboard weighting

• Strengthened high quality diversified portfolio with strategic Virgin Australia Head Office acquisition in Brisbane

• Divested Grace Worldwide facility and recycled proceeds into longer WALE 40 Tank Street, Brisbane[2]

• Portfolio revaluations resulted in a total gross uplift of $32.2m – 2.2% increase on prior book values

• 2.9% annual NTA per security growth

• Agreed terms to refinance $100m debt with new lender, extending debt tenor and diversifying lending sources

• Entered new $100m seven year swap increasing hedge duration and securing long term funding costs

Debt expiry profile[2] (by facility limit)

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$370m
$100m
FY19 FY20 FY21 FY22 FY23+
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• 1 Annual EPS and DPS growth on annualised

• 2 Forecast to settle in August 2018

• 3 Pro-forma post $100m debt refinance

	Key metrics
	Grosspropertyassets Total debt	$1.5bn $0.4bn
	Gearing (balance sheet)	30.6%
	Number of assets	81
	Occupancy	100.0%
	WALE	10.8
	WACR	6.1%
	WARR	2.9%
	Charter Hall interest	20.4%
	Charter Hall co-investment	$195.2m

Geographic allocation (by GAV)

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WA NSW
23% 12%
TAS QLD
1% 21%
SA
21%
VIC
22%
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Charter Hall Group I 2018 Full Year Results

Appendix – Property Investment

Core Logistics Partnership (CLP)

Key events during FY18

• New leases over 275,700sqm of GLA were executed. These include 158,600sqm of leases on the Fund’s stabilised portfolio and 117,100sqm of new preleases improving the Fund WALE to 10.4 years from 9.6 years

• Two new pre-leased facilities at Drystone Estate, Victoria reached practical completion. These included Couriers Please (14,800sqm GLA) and Laverton Cold Storage expansion (12,800sqm GLA)

• Diversified debt source with new $200m USPP with a 5 year expiry. This kept the weighted debt expiry constant at 2.9 years

	Key metrics
	Grosspropertyassets Total debt Gearing (balance sheet) Number of assets	$1.6bn $0.4bn 21.4% 27
	Occupancy	100.0%
	WALE	10.4
	WACR	6.0%
	WARR Charter Hall interest	3.0% 13.8%
	Charter Hall co-investment	$148.8m

Debt expiry profile (by facility limit)

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$350m
$200m
FY19 FY18 FY19 FY20 FY21 FY22 FY23
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Geographic allocation (by GAV)

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WA NSW
14% 8%
QLD
TAS 11%
5%
SA
6%
VIC
56%
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Charter Hall Group I 2018 Full Year Results

Appendix – Property Investment

Charter Hall Prime Industrial Fund (CPIF)

Key events during FY18

• Acquisition of five assets for $370m settled during the year, this includes Hastings Deering portfolio at Acacia Ridge QLD and a newly built Coca Cola facility at Richlands QLD both with triple net lease terms of 20 years improving the Fund WALE to 8.9 years from 7.7 years

• Completion of $240m of developments

• Acquisitions also include a strategic 58.8 hectare land parcel in Truganina VIC which is expected to deliver 250,000sqm of GLA on completion

• New leases over 382,200sqm of GLA were executed. These included 240,400sqm of executed leases on the Fund’s stabilised portfolio and 141,800sqm of new pre-leases on the Fund’s existing land holdings

	Key metrics
	Grosspropertyassets	$3.0bn
	Total debt	$0.7bn
	Gearing (balance sheet)	24.2%
	Number of assets	53
	Occupancy	95.6%
	WALE	8.9
	WACR	6.0%
	WARR	3.1%
	Charter Hall interest	5.9%
	Charter Hall co-investment	$121.0m

Debt expiry profile (by facility limit)

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$500m $498m
$500m $498m
FY18FY18 FY19FY19 FY20FY20 FY21FY21 FY22+FY22+
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Geographic allocation (by GAV)

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NT
WA
1%
10%
TAS
3%
SA NSW
1% 33%
VIC
30%
QLD
22%
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52

Charter Hall Group I 2018 Full Year Results

Additional information

Fund key and glossary

Listed entities

CHC	Charter Hall Group
CQR	Charter Hall Retail REIT
CLW	Charter Hall Long WALE REIT
Wholesale funds
BSWF	Brisbane Square Wholesale Fund
CHOT	Charter Hall Office Trust
CCT	Charter Hall Counter Cyclical Trust
CLP CPIF	Core Logistics Partnership 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	Direct PFA Fund
DAT, DAT2	Charter Hall Direct Automotive Trust Series
DCSF	Charter Hall Direct Consumer Staples Fund
Other
CAGR	Compound Annual Growth 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
WADR	Weighted Average Discount Rate
WALE	Weighted Average Lease Expiry
WARR	Weighted Average Rent Review

53

Charter Hall Group I 2018 Full Year Results

Additional information

Contact information

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David Harrison Managing Director & Group CEO Charter Hall Group

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

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Russell Proutt Chief Financial Officer Charter Hall Group

T: +61 2 8651 9493

E: russell.proutt@charterhall.com.au

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Sean McMahon Chief Investment Officer Charter Hall Group

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

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Philip Cheetham Head of Listed Investor Relations Charter Hall Group

T: +61 2 8651 9214

E: philip.cheetham@charterhall.com.au

54

Charter Hall Group I 2018 Full Year Results

Additional information

Disclaimer

IMPORTANT NOTICE & DISCLAIMER

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

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

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

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

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

All information contained herein is current as at 30 June 2018 unless otherwise stated. All references to dollars ($) are to Australian dollars, unless otherwise stated.

55

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

Charter Hall Group I 2018 Full Year Results

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Melbourne

Level 12, 570 Bourke Street Melbourne VIC 3000

T: +61 3 9903 6100

Brisbane

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

Perth

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

Adelaide

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

56

www.charterhall.com.au