CHARTER HALL GROUP — Annual Report 2019

Aug 19, 2019

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Charter Hall Group 2019 Full Year Results 2 Chifley Square, Sydney NSW
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Charter Hall Group

2019 Full Year Results

20 August 2019

• 1 Highlights and Strategy

• 2 Property Funds Management

• 3 Property Investment

Agenda

• 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 HalCharter Ha l Group 2019 Fu l Year Results l Group 2019 Ful l Year Results

Highlights and Strategy

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Chullora Logistics Park, 2 Hume Highway, Chullora NSW 3
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Charter Hall Group 2019 Full Year Results

Highlights and Strategy

Group highlights[1] Group investment capacity of $4.1bn

Group Returns Property Investments Funds Management Balance Sheet Operating earnings Total property investment return[4] FUM growth Balance sheet gearing $221m 9.1[%] 31.1[%] 5.4[%] Statutory profit[2] to Investment Capacity $ $ $ 235m 30.4bn 314m OEPS growth Property investment portfolio Gross transactions Look through gearing $ $ 25.5[%] 1.8bn (8.1% growth) 5.0bn 30.8[%] Total platform return[3] Property investment yield Property funds management yield[5] Weighted average debt maturity 11.1[%] 6.3[%] 6.0[%] 7.1yrs

1. Figures and statistics on this slide and throughout this presentation are for the 12 months to 30 June 2019 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 in new vehicles held for less than a year and investments in Direct funds

5. Property Funds Management (PFM) yield is calculated as PFM operating earnings post tax per security (includes 50% allocation of net interest) divided by the opening NTA per security

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Charter Hall Group 2019 Full Year Results

Highlights and Strategy

Our strategy

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

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Access

Accessing equity from listed, wholesale and retail investors

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Deploy

Creating value through attractive investment opportunities

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Manage

Funds management, asset management, leasing and development services

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Invest

Investing alongside our capital partners

1 year

Gross equity raised $ 3.4bn

Gross transactions $ 5.0bn

Acquisitions Divestments $ $ 4.2bn 0.8bn 3 years Gross equity raised Gross transactions $ $ 7.5bn 13.7bn Acquisitions Divestments $ $ 9.6bn 4.1bn 5 years Gross equity raised Gross transactions $ $ 10.6bn 20.0bn Acquisitions Divestments $ $ 14.5bn 5.5bn

FUM

$ 30.4bn Properties 844 FUM growth $ 13.0bn FUM growth $ 19.0bn

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$7.2bn

$ 138m

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8.1%

Total property investment return 9.1[%]

Increase in Pl $ 745m 67.9% Total property investment return 12.9[%]

Increase in Pl

$1.1bn 156.0%

Total property investment return 13.3[%]

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Charter Hall Group 2019 Full Year Results

Highlights and Strategy

Sustained growth Strong growth in earnings underpinning distribution growth

Operating earnings per security growth

Distributions per security growth

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Pre-tax OEPS
Post-tax OEPS 56.3cps
43.5cps
47.4cps
40.5cps
30.4cps 37.7cps
35.9cps
27.5cps
25.3cps
FY14 FY15 FY16 FY17 FY18 FY19
Post tax growth
8.5% 10.5% 18.1% 5.0% 25.5%
Pre tax growth
8.5% 10.5% 33.2% 7.4% 29.4%
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DPS (grossed up)
DPS 1 40.0cps
36.9cps
30.0cps 33.7cps
31.8cps
26.9cps
24.2cps
22.3cps
FY14 FY15 FY16 FY17 FY18 FY19
8.5% 11.2% 11.5% 6.0% 6.0%
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1. Grossed up distribution includes franking credits of 6.3cps paid to securityholders in FY19 (5.1cps in FY18)

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Charter Hall Group 2019 Full Year Results

Property Funds Management

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130 Lonsdale Street, Melbourne VIC 7
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Charter Hall Group 2019 Full Year Results

Property Funds Management

Group funds management portfolio

82% east coast weighting

	Portfolio value ($bn)	Lettable area (m sqm)	No. of Properties	No. of Tenancies	Net income1 ($m)	WALE1 (years)	Occupancy1 (%)	WACR (%)
30 June 2019 30.4 6.6 844 3,419 1,713 8.2 97.9 5.58
30 June 2018 23.2 5.4 330 2,447 1,634 7.7 98.1 5.74

Diversification by equity source

Asset type diversification

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Social Other
Retail Equity Infrastructure $0.4bn
$5.0bn16% $1.4bn5% 1% Shopping Centre Retail
$4.0bn
13%
Long WALE Retail
Wholesale $2.9bn
Equity 10%
$19.1bn
Listed Fund 63% Office
$6.3bn $30.4bn $14.1bn $30.4bn
21% 46%
Industrial
$7.6bn
25%
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WALE by sector

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10.6
10.0
7.8
6.9
Office Retail Social Industrial
Infrastructure
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1. June 2018 reported on a Gross Income basis

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Charter Hall Group 2019 Full Year Results

Property Funds Management

Funds under management growth 5 year FUM growth of 21.5% per annum

• FUM growth of 31.1% in FY19, to $30.4bn

Funds under management movement ($bn)

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$30.4bn
$1.0bn
$1.2bn
$1.6bn
$4.2bn ($0.8bn)
$23.2bn
Jun-18 Acquisitions Divestments Folkestone Net Capex Jun-19
Acquisition revaluations
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Funds under management by equity source ($bn)

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Wholesale Listed Retail
$30.4bn
$5.0bn
$23.2bn $6.3bn
$2.9bn
$19.8bn
$4.4bn
$17.5bn $2.8bn
$19.1bn
$2.5bn $4.1bn
$13.6bn $15.9bn
$2.5bn
$11.5bn $1.9bn
$12.9bn
$1.7bn $2.2bn $12.4bn
$2.0bn $9.5bn
$7.8bn
Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19
18.0% 28.7% 13.7% 17.0% 31.1%
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Charter Hall Group 2019 Full Year Results

Property Funds Management

FY19 transactional activity

• Acquisition activity led by the Office and Industrial sectors

($m)	Office	Industrial	Long WALE Retail	Shopping Centre Retail	Social Infrastructure / Other	Total
Acquisitions	2,266	899	505	304	177	4,151
Divestments	(491)	(107)	(38)	(164)	(5)	(805)
Net transactions	1,775	792	467	140	172	3,346
Gross transactions	2,757	1,006	543	468	182	4,956

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Brisbane City Council Bus Terminal, Brisbane QLD
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Rockdale Plaza, Rockdale NSW 10 & 12 Shelley Street, Sydney NSW
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Telstra, Exhibition Exchange, Melbourne VIC
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Charter Hall Group 2019 Full Year Results

Property Funds Management

Development activity

Continues to drive asset creation and attract capital

• Development completions have added $1.1bn of FUM over the last 12 months

• Development pipeline has increased from $3.5bn at June 2016 to over $6.5bn today

• Increased development pipeline results in less reliance on capital transaction activity

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

• Capital continues to be attracted by Charter Hall’s ability to deliver new investment stock

Development activity (completion value $m)	Completions (12 months)	Committed projects	Uncommitted projects2	Total pipeline3
Office	674	2,183	2,041	4,224
Industrial	310	808	1,183	1,991
Retail1	117	84	55	139
Social Infrastructure	26	122	42	164
Total / weighted average 1,127 3,197 3,321 6,518

1. Reflects development spend only and excludes existing centre value

1. Includes potential end value of uncommitted development projects 3. $2.4bn included in FUM at 30 June 2019

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Charter Hall Group 2019 Full Year Results

Property Funds Management

Leasing activity

Deals completed over the last 12 months

	Office	Industrial	Retail	Social Infrastructure
Existing assets leased (lettable area sqm) Major leases	174,511	392,389	125,899	8,668
Developments leased (lettable area sqm) Major leases	32,1571	183,195	-	2,517
Lettable area (sqm)	206,668	575,584	125,899	11,185
Value2 $2.2bn $0.9bn $0.9bn $0.07bn
WALE (years) 8.5 8.1 6.4 12.0

1. Includes AustralianSuper lease at 130 Lonsdale, executed post-balance date

2. Lease NLA/property NLA x property value. Retail value is Lease income/property income x property value

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Charter Hall Group 2019 Full Year Results

Property Funds Management

Equity flows

37,000 investor customers across Wholesale, Listed & Direct

Diversified equity sources with $3.4bn gross equity raised across 16 funds in the 12 months to 30 June 2019:

• Strong wholesale equity flows with $1.8bn raised in pooled funds CPOF and CPIF

• 5 successful equity raisings across CLW, CQR and CQE for a total of $692m raised in the Listed market

• Continued strength in Direct funds with $691m raised in the year

($m)	FY16	FY17	FY18	FY19
Wholesale pooled funds	606	776	649	1,802
Wholesale partnerships	467	217	322	219
Listed funds	76	988	77	692
Direct funds	318	355	653	691
Gross equity raised	1,467	2,336	1,701	3,404
Net equity raised	1,099	1,689	1,487	3,287

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

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Charter Hall Group 2019 Full Year Results

Property Funds Management

FY20 – Year to date FUM

$4.4bn of transactions since 30 June 2019

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$0.6bn $0.2bn $0.1bn ($0.1bn) $34.6bn
$0.7bn
$0.8bn
$30.4bn $1.8bn
Jun-19 Chifley Tower, Sydney 242 Exhibition St, Telstra Exchanges 201 Elizabeth St, Metcash Brisbane ATO Mount Gravatt Divestments Aug-19
Melbourne Sydney
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Asset type diversification

FY20 year to date transactions

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Social Other
Infrastructure $0.4bn Shopping Centre Retail
$1.4bn 1% $4.0bn
4% 12%
Long WALE
Investments
$3.6bn
10%
$17.4bnOffice $34.6bn
51%
Industrial
$7.8bn
22%
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($m)	Office	Industrial	Long WALE Investments	Total
Acquisitions	3,375	184	700	4,259
Divestments	(47)	-	(44)	(91)
Net transactions	3,327	184	656	4,168
Gross transactions	3,422	184	744	4,350

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Charter Hall Group 2019 Full Year Results

Property Investment

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242 Exhibition Street, Melbourne VIC 15
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Charter Hall Group 2019 Full Year Results

Property Investment

Property investment portfolio

81% east coast weighting

	Portfolio value ($m)	No of properties	WALE1 (years)	Occupancy1 (%)	WARR (%)	WACR (%)	WADR (%)
30 June 2019 1,844 793 7.6 97.7 3.5 5.64 6.9
30 June 2018 1,706 298 7.2 97.9 3.6 5.80 7.1

Diversification by property investment

Diversification by sector

Geographic allocation

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Social
DVP CQE Wholesale SC Infrastructure/
DCSF $5m $118m $99m Maxim 11%
$36…
Shopping Centre
CLW Retail
$201… CQR 22%
$300m
Maxim
$25m
CCT
$12m
LWHP
AOF $1,844m $96m Office
$48m 40% $1,844m
BSWF LWIPs Long WALE
$105m $11m Retail
9%
CLP
$106m
CHOT CPIF
$264m $127m Industrial
CPOF 18%
$291m
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NZ
WA 1%
12%
ACT
2%
TAS NSW
1% 41%
SA
3%
$1,844m
VIC
20%
QLD
20%
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1. June 2018 reported on a Gross Income basis

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Charter Hall Group 2019 Full Year Results

Property Investment

Property investment portfolio movement

• During the 12 months to 30 June 2019 the property investment portfolio increased by 8.1% (+$138m) to $1,844m predominantly driven by the investment in CQE

• • PI yield of 6.3% remains attractive

Property investment movement

Property investment portfolio yield

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10.0%
$1,844m
($24m) $1,706m
$76m
$1,844m
$1,527m 8.0%
$86m
$1,098m 6.0%
$1,706m
$944m
$720m 4.0%
2.0%
0.0%
Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19
Jun 18 Net investments Change in valuation Other Jun 19
PI Portfolio ($m) PI Yield (%)
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Charter Hall Group 2019 Full Year Results

Property Investment

Diversified earnings resilience Top 10 asset exposures represent only 11.4% of earnings

• 72% repeat customers across 1,933 leases

• Tenant retention rate of 69% for the 12 months to 30 June 2019

Top 10 tenants by net income

Property investment earnings (by sector)

Top 10 asset exposures[1]

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Woolworths 10.4% # 1 1.8%
Social
Infrastructure/Other
Wesfarmers 9.0% 4% # 2 1.7%
Government 7.5% # 3 1.4%
Shopping
Centre
Coles Group 6.0% Retail # 4 1.3%
26%
Telstra 2.9% # 5 1.3%
Goodstart Early
Learning 2.6% Office # 6 1.0%
45%
Commonwealth Bank 2.5% Long WALE # 7 0.8%
Retail
Inghams 1.9% 10% # 8 0.7%
Amazon 1.8% # 9 0.7%
Industrial
15%
Macquarie Group 1.8% # 10 0.7%
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1. Asset exposure measured as net income of property, weighted for CHPT ownership stake, divided by post-tax OEPS Charter Hall Group 2019 Full Year Results

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Property Investment

Environment, Social & Governance

Environment

Social

Leading green initiatives

Create strong and engaged communities

• Australia’s largest Green Star footprint

• Our People - 378 employee volunteer days

• Our Places - provided over $1.7m or 46,054sqm in space for use by community organisations, health and wellbeing activities

• Energy improvements across the Office portfolio with weighted average ratings increasing from 4.71 Star NABERS Energy to 4.77 NABERS Energy

• Through our Partnerships we invested $775,000 in community programs and services and a further $196,000 for Rural Aid to support drought affected communities

• Onsite renewable energy, in partnership with our tenant customers resulting in 5.2MW of solar PV across the portfolio, generating 7,598MWh of electricity p.a. (507 homes)

• 87% employee engagement and high levels of engagement with our tenant and investor customers

• Stage 1 Retail PPA across 14 shopping centres creating 11,316 kW of solar PV, generating 16,950 MWh of electricity p.a. (1,130 homes)

• Building on our WELL footprint in our offices, existing buildings and new developments

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Governance

Embed a high standard of ethics into our actions

• Developed and launched our new purpose and values

• Became a Signatory to the UN Global Compact

• Developed an understanding of our supply chain and human rights and modern slavery risks

• Ongoing management of our information security practices in alignment with the ISO 27001 framework and regulatory requirements.

• Climate Change risk assessments and adaptation plans in development across all portfolios.

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Charter Hall Group 2019 Full Year Results

Financial Result

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1, 10 & 12 Shelley Street, Sydney NSW 20
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Charter Hall Group 2019 Full Year Results

Financial Result

Earnings summary

• EBITDA of $275.2m, a 34.1% increase over FY18

• Expansion of property funds management platform continuing to underpin organisational growth

• Interest expense in FY19 attributable to USPP issuance that funded in August 18

• Operating earnings and OEPS growth of 25.5% to $220.7m and 47.4cps

• DPS growth of 6.0% to 33.7cps at a distribution payout ratio of 71%

• 6.3cps of franking credits distributed

	($m)	FY18	FY19	Change %
	PI EBITDA	103.8	110.8	6.7%
	DI EBITDA	-	7.8
	PFM EBITDA1	101.4	156.6	54.4%
	EBITDA	205.2	275.2	34.1%
	Depreciation	(3.5)	(4.7)
	Interest income/expense	1.1	(8.3)
	Operating earnings pre-tax	202.8	262.2	29.3%
	Tax	(27.0)	(41.5)
	Operating earnings post-tax	175.8	220.7	25.5%
	Non operating items
	Change in Property Investment valuation2	98.4	75.8
	Other non-operating items2	(24.0)	(61.2)
	Statutory profit after tax	250.2	235.3	(5.9%)
	OEPS pre-tax (cps)	43.5	56.3	29.3%
	OEPS post tax (cps)	37.7	47.4	25.5%
	OEPS post tax excluding CHOT performance fee (cps)	33.8	39.4	16.6%
	DPS (cps)	31.8	33.7	6.0%
	Distribution payout ratio	84%	71%	(13%)

1. In assessing the financial performance of the business, net operating expenses are considered to be primarily related to the Property Fund Management business

2. 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 2019 Full Year Results

Financial Result

Property funds management

• PFM revenue up 39.0% to $262.9m

• Investment management revenue up 45.8% to $210.3m:

• Continued momentum in FUM driving funds management fee growth of 29.5%

• Transaction fees earned from active acquisition and divestment program

2

• $50m of the CHOT performance fee has been accrued in FY19

• Property services revenue up 17.1% to $52.6m:

• Successful leasing activity supporting high occupancy

• PFM expense includes FLK business from 7 November 2018

($m)	FY18	FY19	Change %
Fund management fees	88.0	114.0	29.5%
Transaction and performance fees	56.3	96.3	71.3%
Investment management revenue	144.3	210.3	45.8%
Property management fees1	12.0	14.6	20.7%
Development fees	19.1	15.8	(17.3%)
Leasing fees1	9.2	15.9	73.3%
Facilities and project management fees	4.5	6.3	38.9%
Property services revenue	44.8	52.6	17.1%
PFM revenue	189.1	262.9	39.0%
PFM expenses1	(60.7)	(78.0)	28.7%
Corporate expenses	(27.0)	(28.3)	4.4%
Total PFM expenses	(87.7)	(106.3)	21.2%
PFM EBITDA	101.4	156.6	54.4%
PFM EBITDA Margin	53.6%	59.6%	6.0%

1. FY18 includes a restatement between property management fees and leasing fees $11.9m and PFM expenses $11.9m relating to a move to Retail leasing cost recovery. No impact to PFM EBITDA 2. As at 30 June 2019, CHOT accrued a total performance fee liability of $118m (unaudited)

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Charter Hall Group 2019 Full Year Results

Financial Result

Operating cashflow

• FY19 distribution covered 123% by operating cashflow

• The cashflow difference between FY19 operating earnings and operating cashflow is primarily driven by timing

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$9m
$221m $4m ($33m)
($7m)
$194m
$157m
1
Operating Earnings Earnings vs distributions Non-cash items Change in working capital Tax expense vs cash tax Operating Cashflow Distribution
received paid
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1. Includes CHOT performance fee accrual of $50m (to be cash paid in FY20)

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Charter Hall Group 2019 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 remains at $3.90

• Retained earnings and revaluations are partly offset by higher intangibles following the acquisition of FLK

• Strong return metrics on capital employed in the business

($m)	30-Jun-18	30-Jun-19
Cash	95	114
Property investment	1,706	1,844
Development investment	58	59
Other assets1,2	92	272
Intangibles	63	126
Total assets	2,014	2,415
Borrowings2	0	268
Other liabilities	156	187
Total liabilities	156	455
Total equity	1,858	1,960
NTA per stapled security3	$3.82	$3.90
Return metrics	30-Jun-18	30-Jun-19
Return on equity (pre-tax)4	12.1%	14.8%
Return on equity (post-tax)4	10.5%	12.4%
Total property investment return5	12.3%	9.1%
Total platform return6	15.0%	11.1%

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

1. Includes DCSF assets, distributions and fees receivable

2. Net of swap mark-to-market of $39m relating to the USPP notes (representing USPP repayment value of $231.5m)

3. 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

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

5. 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 a year and investments in Direct funds

6. 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

Charter Hall Group 2019 Full Year Results

24

Financial Result

Debt and capital management

• Group continued to be managed in line with strategy

• Substantial funding capacity available across the Group with $4.1 billion of available liquidity

• $6.3 billion of new and refinanced debt facilities agreed in FY19 with no material maturities in FY20

Key debt metrics funds platform	30-Jun-18	30-Jun-19
Combined fund facilitylimits($m)	10,256	12,872
Combined fund undrawn debt($m)	2,870	3,547
Totalgroupcash($m)	526	596
Look throughgearing (%)	27.3%	30.8%
Look through weighted average debt maturity (yrs.)1	4.3	4.3
Look through weighted average cost of debt2	4.17%	3.58%
Look through interest rate hedging (%) 56% 62%

Drawn debt ($m) and gearing (%) by sector

1. Duration is based on facility limits

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7,000 Undrawn Debt
6,000 Drawn Debt
5,000
4,000
31.9%
3,000
2,000
37.2%
1,000
17.3%
5.4% 33.1% 24.4%
0
Corporate Office Retail Industrial Diversified Social
Infrastructure
Debt Facility ($m)
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1. 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

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Charter Hall Group 2019 Full Year Results

Outlook and Guidance

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Woolworths Dandenong Centre, Dandenong South, VIC

Charter Hall Group 2019 Full Year Results

Outlook & Guidance

FY20 earnings guidance

Our guidance is as follows:

• Based on no material change in current market conditions and reflects changes in FUM thus far in FY20, our FY20 guidance is for 18%-20% growth in post-tax operating earnings per security over FY19

• FY20 guidance also includes $132 million for the CHOT performance fee, payable in April 2020, with $50 million of this amount already accrued in FY19 earnings

• When the impact of the CHOT performance fee is removed from both FY19 and FY20 earnings, guidance implies post tax operating earnings growth of 11-13% over FY19

• FY20 distribution per security guidance is for 6% growth over FY19

• Future distribution payout ratio of 60% – 95% of OEPS

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9 Castlereagh Street, Sydney NSW 27
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Charter Hall Group 2019 Full Year Results

Additional Information

• Management Team

• Property Funds Management

• Property Investment

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Charter Hall Group 2019 Full Year Results

1 Martin Place, Sydney NSW

Appendix 6.1 Management Team

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Charter Hall Group 2019 Full Year Results Charter Hall Group 2019 Full Year Results

Appendix – Management Team

Deep Management Bench Charter Hall Executive Leadership Group

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David Harrison

Managing Director & Group CEO

31 years industry experience

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Sean McMahon

Russell Proutt

Natalie Devlin

Adrian Taylor

Richard Stacker

Greg Chubb

Steven Bennett

Sheridan Ware

Chief Investment Chief Financial Officer Officer

Chief Experience Officer

Office CEO

Industrial CEO

Retail CEO

Direct CEO

Chief Information

& Technology Officer

30 years industry 29 years industry 22 years industry 26 years industry 25 years industry 30 years industry 18 years industry 20 years industry experience experience experience experience experience experience experience experience

30

Charter Hall Group 2019 Full Year Results

Appendix 6.2 Property Funds Management

31

Charter Hall Group 2019 Full Year Results

Appendix – Property Funds Management

Operational highlights

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Office

144 Leasing deals executed across 207,000sqm

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Industrial

45

Leasing deals executed across 576,000sqm

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Retail

447

Leasing deals executed across 57,000sqm

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Social Infrastructure

18

Leasing deals executed across 11,000sqm

12

130 Lonsdale

100[%]

Pre-leased

2,757m

Gross transactions

12

Development projects completion value $4.2bn

$2.9bn New and refinanced debt facilities[1]

1,006m

Gross transactions

28

Development projects completion value $2.0bn

$1.8bn

New and refinanced debt facilities[1]

Leases executed across 69,000sqm

To majors

1,010m

171m

Gross transactions

Gross transactions

29

5

Development projects development spend Development projects development spend $0.2bn $0.2bn $1.0bn $0.4bn New and refinanced debt facilities[1] New and refinanced debt facilities[1]

1. Reflects new and refinance debt facilities within CHC managed funds Charter Hall Group 2019 Full Year Results

32

Appendix – Property Funds Management

Charter Hall group property overview[1]

NT

NT
4properties valued at $0.1bn
Office	-
Retail	1
Industrial	1
Social Infrastructure	2

WA

WA
73properties valued at $3.1bn
Office	7
Retail	25
Industrial	22
Social Infrastructure	19

SA 52properties valued at $1.3bn Office 4 Retail 9 Industrial 9 Social Infrastructure 30	VIC
	199properties valued at $6.7bn
	Office 14
	Retail 31
	Industrial 49
	Social Infrastructure 104
	Other 1

199 13

QLD

QLD
232properties valued at $5.9bn
Office	17
Retail	51
Industrial	30
Social Infrastructure	134

NSW/ACT

NSW/ACT Office Retail Industrial Social Infrastructure	17 51 30 134
222properties valued at $12.6bn
Office	22
Retail	54
Industrial	50
Social Infrastructure	94
Other	2
TAS
13properties valued at $0.4bn
Office	2
Retail	7
Industrial	2
Social Infrastructure	2

1. Excludes 49 New Zealand assets; predominantly childcare valued at $0.1bn

33

Charter Hall Group 2019 Full Year Results

Appendix – Property Funds Management

Charter Hall managed funds

Office Industrial $14.1bn $7.6bn CPOF CHOT BSWF[1] CPIF CLP DVP[2] $ $ $ $ $ $ 5.6b 3.1bn 0.6b 3.7bn 1.8bn 13m n n CCT Mandates DVP[2] $ $ $ 0.5b 0.6b 50m n n DOF PFA SOP Opp DIFs/CDC DCSF[2] $ $ $ $ $ 2.0bn 1.0bn 38m 1.0bn 34m CLW[2] CLW[2] $ $ 0.7bn 1.0bn

Retail

Social Infrastructure / Other $1.8bn

$6.9bn

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

LWHP LWIPs [3] CPRF CIB
$ $ $ $
1.4bn 0.6b 0.4b 0.1bn
n n
RP6 Mandates RP2
CPOF
$ $ $
$ 0.3b 0.3b 0.1bn
6.0bn
n n
DATs BW Trust DCSF [2] Other MAXIM
$ $ $ $ $
0.2bn 0.1bn 85m 0.2bn 0.2bn
Altona
$
49m
CQR CLW [2] CQE CLW [2]
$ $ $ $
3.0b 0.5b 1.2bn 0.1bn
n n
----- End of picture text -----

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 sectors

3. LWIPs include LWIP and LWIP2. CLW hold 49.9% of the units in LWIP

34

Charter Hall Group 2019 Full Year Results

Appendix – Property Funds Management

Office

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FUM

$ 14.1bn

Occupancy

96.7[%]

Cap rate

5.29[%]

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Properties

66

WALE 6.9 yrs

CHC investment $ 737m

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Our business is focussed on creating a true partnership approach to deliver high-quality workplace environments that are productive and provide a better work day experience.”

Adrian Taylor Office CEO

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Western Sydney University, 1 Parramatta Square, Paramatta NSW
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35

Charter Hall Group 2019 Full Year Results

Appendix – Property Funds Management

Industrial

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FUM

$ 7.6bn

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Properties

164

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As one of the largest owners of Industrial and Logistics property in Australia, we go further in collaborating and partnering with our tenant customers to build longterm relationships, and deliver superior returns for our investor customers.”

Richard Stacker Industrial CEO

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Occupancy

99.3[%]

Cap rate

5.72[%]

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WALE 10.6 yrs

CHC investment $ 335m

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Richlands Distribution Facility, 220-260 Orchard Road, Richlands QLD
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36

Charter Hall Group 2019 Full Year Results

Appendix – Property Funds Management

Retail

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FUM

$ 6.9bn

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Properties

178

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As the leading owner and manager of community convenience Retail and long WALE retail, we are focused on optimising performance for sustainable growth and providing a secure income stream for our investors.”

Greg Chubb Retail CEO

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Occupancy

98.2[%]

Cap rate

5.90[%]

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WALE 7.8 yrs

CHC investment $ 576m

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Secret Harbour Square, Secret Harbour WA
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Charter Hall Group 2019 Full Year Results

Appendix – Property Funds Management

Charter Hall Direct[1]

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FUM $ 5.0bn

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Occupancy 99.2[%]

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Cap rate

5.71[%]

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Properties

78

WALE 8.8 yrs

CHC investment $ 36m

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Charter Hall Direct is Australia’s leading direct property fund manager, with $5.0 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 Direct CEO

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

24 Marshall Court, Altona North VIC
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1. Direct assets reflected in the Retail, Office & Industrial sector statistics

38

Charter Hall Group 2019 Full Year Results

Appendix - Property Funds Management

Major wholesale property investment portfolio returns

• The property investment portfolios total property return[1] over the five years to 30 June 2019 was 13.3% per annum, outperforming to MSCI/IPD unlisted wholesale property fund index (NAV post fees), which returned 10.8% over the same period

• The below chart shows the total property return of each major wholesale property investment relative to its sector specific benchmark index

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

22.7%
----- End of picture text -----

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

14.1% 14.3%
13.8% 13.8% 13.5% 13.3% 13.3%
12.9%
10.7% 10.9% 10.9% 10.8%
8.3% 8.2% 8.2% 8.2%
7.8%
2
CHOT CPOF BSWF CPIF CLP LWHP LWIPs Wholesale SC CHC
2014 to 2019 2014 to 2019 2017 to 2019 2014 to 2019 2014 to 2019 2014 to 2019 2014 to 2019 2014 to 2019 2014 to 2019
Office Office Office Industrial Industrial Retail Retail Retail Diversified
Net Return (% p.a.) MSCI/IPD Benchmark (% p.a.)
----- End of picture text -----

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 in new vehicles 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

39

Charter Hall Group 2019 Full Year Results

Appendix – Property Funds Management

Direct funds net return since inception

The active Direct Funds have returned 12.2.% p.a out performing the benchmark[1 ] by 2.0%

funds net return since inception ive Direct Funds have returned 12.2.% p.a out performing the benchmark1by 2.0%	funds net return since inception ive Direct Funds have returned 12.2.% p.a out performing the benchmark1by 2.0%	funds net return since inception ive Direct Funds have returned 12.2.% p.a out performing the benchmark1by 2.0%	funds net return since inception ive Direct Funds have returned 12.2.% p.a out performing the benchmark1by 2.0%	funds net return since inception ive Direct Funds have returned 12.2.% p.a out performing the benchmark1by 2.0%	funds net return since inception ive Direct Funds have returned 12.2.% p.a out performing the benchmark1by 2.0%	funds net return since inception ive Direct Funds have returned 12.2.% p.a out performing the benchmark1by 2.0%	funds net return since inception ive Direct Funds have returned 12.2.% p.a out performing the benchmark1by 2.0%	funds net return since inception ive Direct Funds have returned 12.2.% p.a out performing the benchmark1by 2.0%	funds net return since inception ive Direct Funds have returned 12.2.% p.a out performing the benchmark1by 2.0%	funds net return since inception ive Direct Funds have returned 12.2.% p.a out performing the benchmark1by 2.0%	funds net return since inception ive Direct Funds have returned 12.2.% p.a out performing the benchmark1by 2.0%
17% 2
14% 12% 9% 11% 10% 11% 11% 10%						12% 11% 9% 13% 16% 11% 11% 10% 10% 10% 11%
DIF2 2013-2019 Australian Industrial	DIF3 2014-2019 Australian Industrial	CDC Trust 2014-2019 Adelaide Industrial	DIF4 2016-2019 Australian Industrial	BW Trust 2014-2019 Australian Retail			DAT 2015-2019 Australian Retail	DAT2 2016-2019 Australian Retail	DCSF 2017-2019 Australian Diversified	PFA (Original) 2012-2019 Australian Office	DOF (WSA) 2014-2019 Australian Office
Net Return (% p.a.) Benchmark (% p.a.)

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

2. The Professional Planner | Zenith Fund Awards are determined using proprietary methodologies. Fund Awards were issued October 5, 2018 and are solely statements of opinion and do not represent recommendations to purchase, hold or sell any securities or make any other investment decisions. Fund Awards are current for 12 months from the date awarded and are subject to change at any time.

40

Charter Hall Group 2019 Full Year Results

Appendix 6.3 Property Investment

41

Charter Hall Group 2019 Full Year Results

Appendix – Property Investment

Property Investment portfolio

		Ownership stake	Charter Hall	Charter Hall PI	WALE	WACR	WADR	WARR	**PI Yield3 **
		(%)	Investment	Income	(years)	(%)	(%)	(%)	(%)
			($m)	($m)
	Office		671.9	36.8	5.8	5.2%	6.6%	3.8%	6.0%
	Charter Hall Prime Office Fund(CPOF)	7.1%	291.1	13.4	7.1	5.1%	6.6%	3.8%	5.2%
	Charter Hall Office Trust(CHOT)	15.7%	263.7	15.2	4.3	5.0%	6.4%	3.8%	6.4%
	Brisbane Square Wholesale Fund(BSWF)	16.8%	104.8	7.2	7.8	5.6%	7.0%	3.9%	7.0%
	Counter Cyclical Trust(CCT)	5.0%	12.0	0.9	7.0	5.8%	6.7%	3.6%	8.1%
	Charter Hall PFA Fund (PFA)	0.0%	0.2	0.0	7.5	6.0%	7.0%	3.5%	7.1%
	Industrial		232.8	16.2	10.1	5.6%	6.9%	3.0%	5.9%
	Core Logistics Partnership (CLP)	9.2%	105.9	7.6	10.2	5.6%	6.8%	3.0%	6.3%
	Charter Hall Prime Industrial Fund(CPIF)	4.0%	126.9	6.7	10.0	5.6%	6.9%	3.1%	5.5%
	Direct Investment Trust No. 4 (DIF4)1	-	-	1.8	10.2	5.7%	7.1%	2.7%	6.1%
	Retail		506.4	34.3	6.4	6.0%	7.0%	3.9%	6.6%
	Charter Hall Retail REIT(ASX:CQR)2	16.2%	299.6	22.4	6.5	6.2%	7.2%	4.2%	7.1%
	LongWALE Hardware Partnership (LWHP)	13.4%	96.5	4.8	8.3	5.4%	6.9%	2.8%	5.2%
	Charter Hall Prime Retail Fund(CPRF)2	29.4%	56.6	3.7	4.9	6.0%	7.2%	4.2%	6.4%
	Retail PartnershipNo. 6(RP6)2	20.0%	35.9	2.0	5.0	5.7%	7.3%	3.6%	5.4%
	LongWALE Investment Partnership (LWIP)	0.1%	0.5	0.3	15.1	5.8%	n/a	2.2%	6.8%
	LongWALE Investment Partnership2(LWIP2)	10.0%	11.0	0.7	16.0	5.8%	n/a	2.2%	6.8%
	Retail Partnership No. 2 (RP2)2	5.0%	6.3	0.4	4.6	6.0%	7.5%	4.2%	6.5%
	Diversified		241.6	18.3	11.7	6.0%	7.1%	2.9%	6.6%
	Charter Hall LongWALE REIT(ASX:CLW)	15.2%	200.8	13.4	12.5	6.0%	7.0%	2.8%	6.5%
	DiscretionaryConsumer Staples Fund(DCSF)	41.9%	36.2	3.4	7.2	6.2%	7.4%	3.3%	6.3%
	Deep Value Partnership (DVP)	11.1%	4.6	1.4	3.4	5.9%	7.3%	3.9%	8.9%
	Social Infrastructure		117.7	4.4	9.9	6.2%	n/a	2.3%	6.2%
	Charter Hall Education Trust(ASX:CQE)	13.1%	117.7	4.4	9.9	6.2%	n/a	2.3%	6.2%
	Property Investment Sub-Total		1,770.3	110.0	7.6	5.6%	6.9%	3.5%	6.3%
	Other investments4		73.3	0.8
	Property Investment Total		1,843.6	110.8

1. Charter Hall sold its interests in DIF4 in June 2019

2. Other investments include AOF 9.9% stake and investment in MAXIM funds

3. Refers to contracted weighted average rent reviews of the specialty tenants only

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

42

Charter Hall Group 2019 Full Year Results

Appendix – Property Investment

Charter Hall Retail REIT (ASX:CQR)

Key events during FY19

• Acquired Campbellfield Plaza, Vic for $74 million (settled January 2019), Rockdale Plaza, NSW for $142m (settled April 2019)

• Contracted divestments totalling $61 million to be settled over FY20 (Balo, NSW, Katherine, NT and Carnarvon, WA)

• Completed an institutional placement and UPP to raise $165 million for the acquisition of Rockdale Plaza, NSW

• Lake Macquarie Square, NSW redevelopment completed

• Refinanced and increased CHRP2 existing debt facilities from $105 million to $110 million and extended the maturity to July 2024. Weighted average debt maturity of 4.9 years with no debt maturing until FY22

• 14 centres undergoing solar installation

Debt expiry profile (by facility limit)

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

$295m
$285m
$252m
$190m
$177m
$52m
FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28+
----- End of picture text -----

1. All metrics are on a look-through basis unless otherwise stated

2. Refers to contracted weighted average rent reviews of the specialty tenants only 3. Includes assets held for sale

Key metrics1
Grosspropertyassets	$3.0bn
Total debt	$1.0bn
Gearing (balance sheet)	32.9%
Number of assets	58
Occupancy (weighted byGLA)	98.1%
WALE	6.5years
WACR 6.18%
WARR2 4.2%
Charter Hall Interest 16.2%
Charter Hall co-investment $299.6m

Geographic allocation (by GAV)[3]

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

SA NT
ACT 4% 1%
4%
VIC
14%
NSW
48%
WA
15%
QLD
14%
----- End of picture text -----

Charter Hall Group 2019 Full Year Results

43

Appendix – Property Investment

Charter Hall Long WALE REIT (ASX:CLW)

Key events during FY19

• Operating EPS and DPS of 26.9 cents, reflecting 2% annual growth on FY18

• NTA per security of $4.09

• Total gross property transactions of $880.7 million, enhancing portfolio diversification, improving tenant quality and increasing WALE

• Executed lease extensions with major tenants, Inghams Group and SUEZ

• WALE of 12.5 years, up from 10.8 years as at 30 June 2018

• Balance sheet gearing of 27.5% within target range of 25.0% to 35.0%

• Weighted average debt maturity of 4.5 years

WALE

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

1.4
1.3
12.5
10.8 10.9
9.8
30 June 2018 30 June 2019 (static Lease extensions Net transaction 30 June 2019
portfolio) activity
----- End of picture text -----

Key metrics
Grosspropertyassets	$2.1bn
Total debt(balance sheet)	$0.5bn
Gearing (balance sheet)	27.5%
Number of assets	118
Occupancy	99.6%
WALE	12.5years
WACR 6.0%
WARR 2.8%
Charter Hall Interest 15.2%
Charter Hall co-investment $200.8m

Geographic allocation (by GAV)

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

ACT TAS
5% 1%
SA
13%
QLD
25%
NSW
17%
WA
21%
VIC
19%
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44

Charter Hall Group 2019 Full Year Results

Appendix – Property Investment

Charter Hall Education Trust (ASX:CQE)

Key events during FY19

• Distribution of 16.0 cents per unit (“cpu”), an increase of 6.0% on pcp

• NTA per unit of $2.96, an increase of 6.5% from $2.78 per unit at 30 June 2018

• Institutional placement of $120.0 million to fund the acquisition of 13 early learning centres (expected to be delivered at varying stages before June 2020)

• Development pipeline of 31 sites with a forecast completion value of $190 million

Debt expiry profile (by facility limit)

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

$224m
$173m
FY19 FY20 FY21 FY22 FY23 FY24+
----- End of picture text -----

Key metrics
Gross assets	$1.2bn
Total debt	$0.3bn
Gearing (balance sheet)	$23.1%1
Number of assets	4222
Occupancy	100.0%
WALE	9.93 years
WACR 6.2%
WARR 2.3%
Charter Hall Interest 13.1%
Charter Hall co-investment $117.7m

Geographic allocation (by GAV)

==> picture [189 x 182] intentionally omitted <==

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

NT NZ ACT
WA 0.5% 8% 1%
4% NSW
TAS
20%
0.5%
VIC
25%
QLD
SA 38%
4%
----- End of picture text -----

1. Look-through gearing of 24.7%

2. Includes 50% interest in Brisbane City Council Bus Network Terminal

3. Excludes CQE investment in CHCIB and ARF

45

Charter Hall Group 2019 Full Year Results

Appendix – Property Investment

Charter Hall Prime Office Fund (CPOF)

Key events during FY19

• The Fund returned 11.3% for the 12 months to 30 June 2019

• The Fund’s Gross Asset Value (GAV) grew to $5.6bn during the year driven by revaluation uplift of $314.1m (+7.0%) and the strategic acquisition of 555 Collins Street, Melbourne, 2 Chifley Square, Sydney (Freehold) and 50% of 10 and 12 Shelly Street, Sydney

• The Fund successfully executed over 150,000 sqm of leases during the period further enhancing the portfolios resilience, new leases of note include

• AustralianSuper at 130 Lonsdale Street, Melbourne over 16,200 sqm for 12 years

• NSW Government at 231 Elizabeth Street, Sydney over 21,700 sqm for 12 years

Debt expiry profile (by facility limit)

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

$700m
$400m $413m
$300m
FY20 FY21 FY22 FY23 FY24 FY25+
----- End of picture text -----

Key metrics
Grosspropertyassets	$5.6bn
Total debt	$1.5bn
Gearing (balance sheet)	20.8%
Number of assets	26
Occupancy	98.9%
WALE	7.1years
WACR 5.1%
WARR 3.8%
Charter Hall Interest 7.1%
Charter Hall co-investment $291.1m

Geographic allocation (by GAV)

==> picture [196 x 191] intentionally omitted <==

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

SA
WA 3%
9%
QLD NSW
14% 47%
VIC
27%
----- End of picture text -----

46

Charter Hall Group 2019 Full Year Results

Appendix – Property Investment

Charter Hall Office Trust (CHOT)

Key events during FY19

• CHOT achieved 18.0% equity return for 12 months to 30 Jun 2019 (unit price, pre final performance fee forecast)

• Valuations – externally valued at $3.1bn at Jun-19 representing a net increase of $103.7m or 3.4% against the Jun-19 book valuations

• Leasing – HOA for a new pre-committed development in Melbourne spanning 21,500sqm

• Capital transactions – after securing the QLD Government for 10 years over the entire asset, divested Capital Hill $60m

Debt expiry profile (by facility limit)

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

$500
$400 $400
FY19 FY20 FY21 FY22 FY23+
----- End of picture text -----

Key metrics
Grosspropertyassets	$3.1bn
Total drawn debt	$1.2bn
Gearing (balance sheet)	39.6%
Number of assets	9
Occupancy	95.1%
WALE	4.3years
WACR 5.01%
WARR 3.8%
Charter Hall Interest 15.7%
Charter Hall co-investment $263.7m

Geographic allocation (by GAV)

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

WA
QLD
1%
7%
VIC NSW
25% 67%
----- End of picture text -----

47

Charter Hall Group 2019 Full Year Results

Appendix – Property Investment

Charter Hall Prime Industrial Fund (CPIF)

Key events during FY19

• Acquisition of 12 assets for $372m settled with a combined WALE of 16.0 years improving the Fund’s closing WALE to 10.0 years. The acquisitions strengthen CPIF’s relationship with key existing and new tenant customers such as the Australian Federal Police, Metcash, Coles, Coca-Cola Amatil and Bombardier Transport

• 5 developments reached completion with a GAV of $245m at Chullora & Huntingwood in NSW and Berrinba in QLD

• A 2.9% improvement of occupancy to 98.5% with leases executed over 401,749sqm of GLA. These include 254,760sqm of leases in the Fund’s stabilised portfolio and 146,989sqm of new pre-leases on existing land holdings

• $825m debt refinanced with Australian syndicated banks and entered into a new USPP & offshore bank facility improving debt maturity by 2.1 years to 6.3 years

Debt expiry profile (by facility limit)

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

$673m
$350m
$150m
FY20 FY21 FY22 FY23 FY24 FY25+
----- End of picture text -----

Key metrics
Grosspropertyassets	$3.7bn
Total debt	$0.5bn
Gearing	5.2%
Number of assets	64
Occupancy	98.5%
WALE	10.0years
WACR 5.6%
WARR 3.1%
Charter Hall Interest 4.0%
Charter Hall co-investment $126.9m

Geographic allocation (by GAV)

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

TAS NT
SA
2% 1%
4%
WA
8%
NSW
34%
QLD
19%
VIC
32%
----- End of picture text -----

48

Charter Hall Group 2019 Full Year Results

Appendix – Property Investment

Core Logistics Partnerships (CLP)

Key events during FY19

• Acquisition of four assets for $97m settled during the year including the Coles DC at Smeaton Grange NSW, the Coca Cola facility at Kewdale WA (both extensions of existing customer relationships in the Fund) and development land at Eastern Creek and Huntingwood East in NSW in line with CLP’s patient Sydney upweighting strategy

• New leases over 167,322sqm of GLA were executed. These included 88,460sqm of leases in the Fund’s stabilised portfolio and 78,862sqm of new preleases supporting the portfolio WALE of 10.2 years

• Refinanced $350m CBA facility and diversified the lenders with NAB and ING Bank joining foundation lender CBA. Secured a $100m 10-year USPP. Debt maturity increased to 4.9 years, an improvement from 3.3 years as at June 2018

Debt expiry profile (by facility limit)

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

$288m
$188m
$175m
FY20 FY21 FY22 FY23 FY24 FY25+
----- End of picture text -----

Key metrics
Grosspropertyassets	$1.8bn
Total debt	$0.4bn
Gearing	26.3%
Number of assets	34
Occupancy	100.0%
WALE	10.2years
WACR 5.6%
WARR 3.0%
Charter Hall Interest 9.2%
Charter Hall co-investment $105.9m

Geographic allocation (by GAV)

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WA NSW
13% 13%
TAS
4% QLD
SA 9%
5%
VIC
56%
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Charter Hall Group 2019 Full Year Results

Additional information

Portfolio performance review dates

	Fund	Portfolio Performance Review Dates
	Charter Hall Office Trust (CHOT)	FY20
	Core Logistics Partnership (CLP)	7 yearly – FY20 plus individual asset divestment performance fees
	Charter Hall Direct CDC Trust (CDC)	FY20
	Charter Hall Direct Industrial Fund No. 2 (DIF2)	FY20
	Direct Office Fund (DOF)	5 yearly – FY20
	Charter Hall Prime Office Fund (CPOF)	3 yearly – FY21
	Brisbane Square Wholesale Fund (BSWF)	3 yearly – FY22
	Charter Hall Direct Industrial Fund No. 4 (DIF4)	5 yearly – FY22
	Charter Hall Prime Industrial Fund (CPIF)	3 yearly – FY22
	Long WALE Hardware Partnership (LWHP)	7 yearly – FY22 plus individual asset divestment performance fees
	Retail Partnership No. 2 (RP2)	7 yearly – FY22
	Retail Partnership No. 6 (RP6)	7 yearly – FY22
	Charter Hall Direct Industrial Fund No. 3 (DIF3)	FY22
	Charter Hall Direct Automotive Trust (DAT)	FY22
	Charter Hall Direct Automotive Trust No. 2 (DAT2)	FY22
	Charter Hall Direct Consumer Staples Fund (DCSF)	5 yearly – FY23
	Charter Hall PFA Fund (PFA)	5 yearly – FY23 or individual asset divestment performance fees
	Charter Hall Direct BW Trust (BW Trust)	FY24
	Counter Cynical Trust (CCT)	FY25
	Deep Value Partnership (DVP)	FY26 plus individual asset divestment performance fees

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Charter Hall Group 2019 Full Year Results

Appendix – Property Investment

Fund key and glossary

Listed entities

Listed entities
ASX:CHC	Charter Hall Group
ASX:CQR	Charter Hall Retail REIT
ASX:CLW	Charter Hall Long WALE REIT
ASX:CQE	Charter Hall Education Trust
Wholesale funds
BSWF	Brisbane Square Wholesale Fund
CHOT	Charter Hall Office Trust
CCT	Charter Hall Counter Cyclical 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, LWIP 2	Long WALE Investment Partnership series
RP1, RP2, RP6	Retail Partnership series
DVP	Deep Value Partnership

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

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Charter Hall Group 2019 Full Year Results

Appendix – Additional information

Contact information

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David Harrison

Managing Director & Group CEO Charter Hall Group

Sean McMahon

Chief Investment Officer Charter Hall Group

Russell Proutt

Chief Financial Officer Charter Hall Group

Philip Cheetham

Head of Listed Investor Relations Charter Hall Group

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

T: +61 2 8651 9147

E: sean.mcmahon@charterhall.com.au

T: +61 2 8651 9493

E: russell.proutt@charterhall.com.au

T: +61 2 8651 9214

E: philip.cheetham@charterhall.com.au

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 2019 unless otherwise stated. All references to dollars ($) are to Australian dollars, unless otherwise stated.

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Charter Hall Group 2019 Full Year Results

Sydney Head Office

Brisbane

Sydney Head Office Melbourne Brisbane Perth Level 20, No.1 Martin Place Level 14, 570 Bourke Street Level 3, The Annex Level 5, St Georges Square Sydney NSW 2000 Melbourne VIC 3000 275 George Street 225 St Georges Terrace Brisbane QLD 4000 Perth WA 6000 T: +61 2 8651 9000 T: +61 3 9903 6100 T: +61 7 3228 2000 T: +61 8 9269 5900

Adelaide

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

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Charter Hall Group 2019 Full Year Results