CHARTER HALL GROUP — Annual Report 2020

Aug 19, 2020

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130 Lonsdale Street, Melbourne VIC
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Charter Hall Group

2020 Full Year Results

20 August 2020

Charter Hall Group 2020 Full Year Results

1. Highlights and Strategy

2. Property Funds Management

3. Property Investment

4. Financial Result

Agenda

5. Outlook and Guidance 6. Additional Information

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Sean McMahon

David Harrison

Sean McMahon Russell Proutt Chief Investment Chief Financial Officer Officer

Managing Director & Group CEO

Charter Hall Group 2020 Full Year Results

Highlights and Strategy

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Dandenong Distribution Centre, Dandenong South, Melbourne VIC

Charter Hall Group 2020 Full Year Results

Highlights and Strategy

Group highlights[1] Group investment capacity of $5.0bn

Group Returns

Operating earnings $ 323m Statutory profit[2] $ 346m

Property Investments

Property Investment portfolio $ 2.0bn 10.0% growth

Funds Management

FUM growth $ 10.1bn to $ 40.5bn 33.2% growth

Investment Capacity

Group investment capacity[6]

$ 5.0bn

Balance sheet

Total Property Investment (PI) return[4] 10.0[%]

OEPS

69.3cps

Total platform return[3]

Property Investment (PI) yield 6.2[%]

18.8[%]

1. Figures and statistics on this slide and throughout this presentation are for the 12 months to 30 June 2020 unless otherwise stated 2. Attributable to stapled securityholders

2. 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 for the 12 months to 30 June 2020

Gross transactions $ 8.3bn

NTA growth

9.6[%]

Property Funds Management (PFM) yield[5] 10.5[%]

Balance sheet gearing

0%

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 PI portfolio for the 12 months to 30 June 2020. This excludes investments in new vehicles held for less than a year and investments in Direct funds

2. 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 for the 12 months to 30 June 2020

3. Investment capacity calculated as cash plus undrawn debt facilities for CHC and the funds management platform. At 30 June 2020, cash was $1.4bn

Charter Hall Group 2020 Full Year Results

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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 deployed $ 5.1bn

Gross transactions

$ 8.3bn

FUM

$ 40.5bn

Increase in Pl to $2.0bn

$ 184m

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10.0%

3 years Gross equity deployed

$ 10.2bn

5 years Gross equity deployed $ 14.0bn

Divestments

$ 1.0bn

Gross transactions

$ 16.8bn

Divestments

$ 2.8bn

Gross transactions

$ 25.8bn

Acquisitions $ 7.3bn

Acquisitions $ 14.0bn

FUM growth

$ 10.1bn

FUM growth $ 20.7bn

FUM growth $ 27.0bn

Total Property Investment return

10.0[%]

Increase in Pl

$ 501m 32.8% Total Property Investment return

10.4[%]

Increase in Pl

$ 114.8% 1.1bn

Divestments

$ 5.8bn

Acquisitions $ 19.9bn

Total Property Investment return

13.1[%]

Charter Hall Group 2020 Full Year Results

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Highlights and Strategy

Operating in the COVID-19 environment

Charter Hall strategy demonstrating its resilience

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Access

• Accelerating demand for industrial & logistics

• Direct flows have averaged $95m per month during FY20

• Continued securing wholesale pooled and partnership inflows

• Listed inflows of $1.4bn during FY20

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Deploy

Manage

• -

• Continued momentum in sale Proportion of rent from SME and leaseback transactions tenants of 10.2% across the funds platform

• Pivoted volume toward Industrial & logistics

  • Platform benefited from high occupancy, long WALE portfolios and resilient tenant industries

• Taken advantage of reduced buyer competition

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Invest

• Incremental balance sheet investments weighted towards Industrial & Logistics & Long WALE portfolios

• Balance sheet highly diversified with Top 10 asset exposures representing only 7.4% of Group earnings

• High proportion of government and strong covenant corporate tenants in resilient industries

Charter Hall Group 2020 Full Year Results

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Highlights and Strategy

53.9cps

Operating earnings growth

Operating earnings per security growth

Operating earnings per security growth (excluding CHOT Performance fee)

OEPS (pre-tax) cps OEPS (post-tax) cps

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86.6cps
69.3cps
56.3cps
43.5cps
40.5cps 47.4cps
35.9cps [37.7cps]
27.5cps [30.4cps]
[25.3cps]
[22.9cps]
19.2cps [20.7cps]
15.8cps
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FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
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39.4cps
33.6cps [33.8cps]
30.4cps
27.5cps
25.3cps
22.9cps
19.2cps [20.7cps]
15.8cps
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FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Charter Hall Group 2020 Full Year Results

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Highlights and Strategy

15 years as a listed company

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’07 ’14 ’19
Launches CPIF, now Launches LWIP and Secures Telstra Exchange
valued at $5.2bn LWHP, with a current and BP portfolios for
’05 ’11 combined value of $2.5bn ’17 combined value of $1.6bn
Charter Hall lists on the Charter Hall celebrates its Charter Hall FUM grows to
ASX with FUM of $1.0bn 20 year anniversary $20bn
’06 ’12 ’18
Launches CPOF, now Creation of CHOT, now Charter Hall acquires FLK
valued at $7.1bn valued at $3.5bn. Launches $2.6bn FUM
’10 CLP, now valued at $2.0bn ’16 ’20
Charter Hall acquires IPO of the Charter Hall FUM exceeds $40bn,
Macquarie Group’s real Long WALE REIT (CLW), doubling in 3 years
estate platform for $108m now valued at $3.6bn
plus co-investments
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Charter Hall Group 2020 Full Year Results

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Highlights and Strategy

15 years as a listed company 15 years of outperformance relative to the AREIT index

Total Shareholder Return vs. ASX 200 Property Accumulation Index (XPJAI) (Compound Annual Growth Rate)

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Return on Contributed Equity
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23.3%
CHC XPJAI Return on contributed equity (pre-tax) %
Return on contributed equity (post-tax) %
25.8% p.a.
22.1% p.a.
21.5% p.a.
15.1%
11.6%
15.7% p.a. 11.5%
18.6%
9.2% p.a.
12.7%
10.2% 10.1%
4.4% p.a. 8.7%
3.1% p.a.
2.0% p.a.
3 Years 5 Years 10 Years Since Listing FY16 FY17 FY18 FY19 FY20
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Source: UBS

Charter Hall Group 2020 Full Year Results

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Property Funds Management

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ALDI Prestons Distribution Centre, Prestons NSW

Charter Hall Group 2020 Full Year Results

Property Funds Management

Group funds management portfolio High occupancy and sector leading WALE’s

				Portfolio value	Lettable area	No. of	No. of	Net rent	WALE	Occupancy	WACR
				($bn)	(m sqm)	Properties	Tenancies	($m)	(years)	(%)	(%)
	30	June	2020	40.5	7.9	1,104	4,051	2,167	8.6	97.5	5.27
	30	June	2019	30.4	6.6	844	3,419	1,713	8.2	97.9	5.58

Diversification by equity source

Asset type diversification

WALE by sector

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Social Infrastructure
$2.7bn
Retail Equity
6.6%
$6.1bn 14.4
14.9% SC Retail
$3.8bn
9.3% 12.3
Industrial &
Logistics 10.9
Listed Funds $10.4bn
$8.2bn Long WALE 25.5% Anchor WALE11.7 year
20.2% Retail
$4.0bn
9.9% 6.7
$40.5bn $40.5bn 5.8
Wholesale
Equity
$26.3bn
64.9% SC Retail Office Industrial & Long WALE Social
Office Logistics Retail Infrastructure
$19.7bn
48.7%
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Charter Hall Group 2020 Full Year Results

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Property Funds Management

Funds under management growth FUM growth of 33.2% in FY20, to $40.5bn

Funds under management movement ($bn)

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$1.3bn $40.5bn
$1.4bn
$8.5bn ($1.1bn)
$30.4bn
FY19 Acquisitions Divestments Net Capex FY20
revaluations
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Funds under management by equity source ($bn)

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Wholesale Listed Retail
5-year FUM CAGR: 22.6% 30.5% 26.2%
$40.5bn
$6.1bn
$30.4bn $8.2bn
$5.0bn
$23.2bn
$26.3bn
$6.3bn
$19.8bn $2.9bn
$17.5bn
$2.8bn $4.4bn
$19.2bn
$2.5bn
$13.6bn $4.1bn
$15.9bn
$2.5bn
$1.9bn
$12.9bn
$2.2bn $12.4bn
$9.5bn
Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20
YoY Growth
28.7% 13.7% 17.0% 31.1% 33.2%
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Charter Hall Group 2020 Full Year Results

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Property Funds Management

FY20 transactional activity 67% growth in transactional activity

($m)	Office	Industrial & Logistics	Long WALE Retail	Shopping Centre Retail	Social Infrastructure / Other	Total
Acquisitions	3,334	1,906	1,212	62	760	7,275
Divestments	(229)	(107)	(194)	(420)	(72)	(1,023)
Net transactions	3,106	1,799	1,018	(358)	688	6,252
Gross transactions	3,563	2,014	1,407	482	832	8,297

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ALDI Distribution Centre, Prestons, Sydney NSW

BP Forestville, Sydney NSW

2 Chifley Square, Sydney NSW

Arnott’s Distribution Facility, Huntingwood, Sydney NSW

Charter Hall Group 2020 Full Year Results

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Property Funds Management

Development activity Development continues to drive FUM growth & attract capital

Development activity (completion value ($m) Completions (last 12 months) Committed projects Uncommitted projects2 Total pipeline3	Development activity (completion value ($m) Completions (last 12 months) Committed projects Uncommitted projects2 Total pipeline3	Development activity (completion value ($m) Completions (last 12 months) Committed projects Uncommitted projects2 Total pipeline3	Development activity (completion value ($m) Completions (last 12 months) Committed projects Uncommitted projects2 Total pipeline3	Development activity (completion value ($m) Completions (last 12 months) Committed projects Uncommitted projects2 Total pipeline3
Office	1,319	870	3,339	4,209
Industrial & Logistics	328	1,348	916	2,264
Long WALE Retail	-	116	-	116
Retail1	-	19	32	51
Social Infrastructure	25	116	29	145
Total / weighted average 1,672 2,470 4,316 6,786

1. Reflects development spend only and excludes existing centre value 2. Includes potential end value of uncommitted development projects

2. $2.5bn included in FUM at 30 June 2020

Charter Hall Group 2020 Full Year Results

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Property Funds Management

Equity flows

Diversified equity sources with $5.1bn gross equity flows across 24 funds in the last 12 months

• Wholesale equity raisings of $2.6bn including raisings in CPOF, DVP, CHAIT and Telstra Exchanges Trust

• Listed equity flows of $1.4bn with 6 raisings across CLW, CQR and CQE

• Continued strength in Direct funds with $1.1bn raised in the year

• 37,000 investor customers across Wholesale, Listed & Direct

($m) FY17 FY18 FY19 FY20	($m) FY17 FY18 FY19 FY20	($m) FY17 FY18 FY19 FY20	($m) FY17 FY18 FY19 FY20	($m) FY17 FY18 FY19 FY20
Wholesale pooled funds	776	649	1,802	1,272
Wholesale partnerships	217	322	219	1,298
Listed funds	988	77	692	1,369
Direct funds	355	653	691	1,136
Gross equity 2,336 1,701 3,404 5,076
Net equity 1,689 1,487 3,287 4,585

Charter Hall Group 2020 Full Year Results

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Property Investment

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2 Chifley, Square, Sydney NSW

Charter Hall Group 2020 Full Year Results

Property Investment

Property Investment portfolio 81% east coast weighting

				Portfolio value	No. of	WALE	Occupancy	WARR	WACR	WADR
				($bn)	Properties	(years)	(%)	(%)	(%)	(%)
	30	June	2020	2.0	1,027	8.7	97.6	3.3	5.25	6.5
	30	June	2019	1.8	793	7.6	97.7	3.5	5.64	6.9

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Diversification by sector
Social Infrastructure
$226m Industrial &
11.1% Logistics
$325m
16.0%
SC Retail
$227m
11.2%
$2,028m
Long WALE
Retail
$386m
19.0%
Office
$864m
42.6%
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Geographic allocation
NZ
WA 0.3%
13%
TAS
1%
ACT
1%
SA
3%
NSW
42%
$2,028m
VIC
23%
QLD
16%
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Charter Hall Group 2020 Full Year Results

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Property Investment

Property Investment portfolio movement PI yield of 6.2% remains attractive

Property Investment portfolio movement

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$68m ($26m)
$2,028m
$143m
$1,844m
Jun-19 Net investments Change in Other Jun-20
valuation
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Property Investment portfolio yield

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10.0%
Portfolio value $m PI Yield %
$2,028m
8.0%
$1,844m
$1,706m
$1,527m
6.0%
$1,098m
$944m
4.0%
2.0%
-
Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20
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Charter Hall Group 2020 Full Year Results

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Property Investment

Diversified PI earnings Top 10 asset exposures represent only 7.4% of Group earnings (post-tax)

– 74% repeat customers across 2,130 leases

• Tenant retention rate of 86.5% for the 12 months to 30 June 2020

Top 10 tenants by net income[1]

Property Investment earnings (by sector)

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Social
Government 10.4% Infrastructure
9% Industrial &
Telstra 8.4% Logistics
16%
Wesfarmers 8.3%
SC Retail
Woolworths 6.5%
18%
Coles Group 3.9%
BP 3.6%
Commonwealth Bank 3.6%
Macquarie Group 1.8%
Office
40%
Amazon 1.8%
Long WALE Retail
Goodstart Early Learning 1.8% 17%
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Top 10 asset exposures[2]

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1 1.4%
# 2 1.3%
# 3 1.0%
# 4 0.9%
# 5 0.5%
# 6 0.5%
# 7 0.5%
# 8 0.4%
# 9 0.4%
# 10 0.4%
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1. Proportion of CHPT net income by tenant

2. Asset exposure measured as net income of property, weighted for CHPT ownership stake, divided by post-tax group OEPS Charter Hall Group 2020 Full Year Results

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Property Investment
ESG
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Environment

Climate resilience

Net zero target

Implementation of Scope 1 and Scope 2 Net Zero by 2030 pathway.

Renewable Energy

21MW of solar installed across our retail, industrial and office portfolios, in partnership with our tenant customers, when operating at capacity has the potential to generate 32.3MWh of energy, equivalent to powering 2,150 homes, over a twelve month period.

Sustainable Portfolios

Australia’s largest Green Star footprint with 230 assets achieving a Green Star Performance or Design and As Built ratings and 8 office funds in top 11 portfolios in NABERS Sustainable Portfolios index.

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Social

Strong communities

Pledge 1%

$933,000 donated to the community through our partnerships, including $500,000 for bushfire relief and recovery.

60% of employees engaged in volunteering. 45,285sqm in Pledge 1% space, valued at $1.9m provided for community use.

Engaged employees

93% employee engagement score and Charter Hall was recognised in the Women’s Index – Australia as one of the leading ASX listed companies to demonstrate gender equality.

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Governance

Responsible Business

TCFD alignment underway

Climate Strategy evolving to prepare our business for a low carbon economy and/or business as usual climate scenarios.

Working to protect human rights

Mandatory employee Modern Slavery training. High risk suppliers engaged through pre-qualification survey, measuring awareness and understanding of modern slavery issues.

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Charter Hall Group 2020 Full Year Results

Financial Result

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Arnott’s Distribution Centre, Huntingwood, Sydney NSW

Charter Hall Group 2020 Full Year Results

Financial Result

Earnings summary

• DI EBITDA increased with accelerated completion of Folkestone developments

• PFM EBITDA increase includes CHOT performance fee of $98m and strong transaction activity

• OEPS growth of 46.3% with growth excluding CHOT performance fee also strong at 36.8%

• DPS growth of 6.0% on FY19 to 35.7cps

• Distribution payout ratio of 52% in the year

• 7.5cps of franking credits distributed

($m) FY19 FY20 Change %	($m) FY19 FY20 Change %	($m) FY19 FY20 Change %	($m) FY19 FY20 Change %
PI EBITDA	110.8	120.0	8.3%
DI EBITDA	7.8	17.1	119.9%
PFM EBITDA1	156.6	289.0	84.5%
EBITDA 275.2 426.1 54.8%
Depreciation	(4.7)	(10.6)	125.5%
Interest income/expense	(8.3)	(11.9)	43.3%
Operating earnings pre-tax	262.2	403.6	53.9%
Tax (41.5) (80.8) 94.7%
Operating earnings post-tax 220.7 322.8 46.3%
Non operating items
Change in Property Investment valuation2 75.8 67.8 (10.6%)
Other non-operating items2 (61.2) (44.7) (27.0%)
Statutory profit after tax 235.3 345.9 47.0%
OEPS pre-tax (cps) 56.3 86.6 53.9%
OEPS post tax (cps) 47.4 69.3 46.3%
OEPS post tax excluding CHOT performance fee (cps) 39.4 53.9 36.8%
DPS (cps) 33.7 35.7 6.0%
Distribution payout ratio 71% 52% (20%)

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

Charter Hall Group 2020 Full Year Results

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Financial Result

Property funds management

• PFM revenue up 56.8% to $412.3m

• Investment management revenue up 69.8% to $357.1m:

• Continued momentum in FUM driving funds management fee growth of 34.5%

• Transaction fees earned from active acquisition and divestment program

• $98m of the $148m CHOT performance fee was recognised in FY20 (cash paid in March 2020)

• Property services revenue up 4.9% to $55.2m:

• Growth in FUM driving increases across property management, facilities and project management fees

• Development fees driven by continued development activity

($m) FY19 FY20 Change %	($m) FY19 FY20 Change %	($m) FY19 FY20 Change %	($m) FY19 FY20 Change %
Fund management fees	114.0	153.3	34.5%
Transaction and performance fees	96.3	203.8	111.7%
Investment management revenue	210.3	357.1	69.8%
Property management fees	14.6	17.4	19.2%
Development fees	15.8	16.8	6.3%
Leasing fees	15.9	13.2	(17.0%)
Facilities and project management fees	6.3	7.8	23.7%
Property services revenue	52.6	55.2	4.9%
PFM revenue	262.9	412.3	56.8%
PFM expenses	(78.0)	(90.1)	15.5%
Corporate expenses	(28.3)	(33.2)	17.3%
Total PFM expenses (106.3) (123.3) 16.0%
PFM EBITDA 156.6 289.0 84.6%
PFM EBITDA Margin 59.6% 70.1% 10.5%

• PFM EBITDA increase of 84.6% to $289.0m

Charter Hall Group 2020 Full Year Results

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Financial Result

Operating cashflow

• 2.4 times coverage of FY20 distribution by operating cashflow

• The cashflow difference between FY20 operating earnings and operating cashflow is primarily driven by timing of earnings recognition and receipt of cash

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$15m $402m
$52m
$18m
$323m ($5m)
$166m
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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Charter Hall Group 2020 Full Year Results

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Financial Result

Balance sheet and return metrics

• Increase in cash reflects receipt of performance fees and retained earnings, resulting in net zero gearing

• Utilised investment capacity from June 2019 to deploy into Property Investments, which along with revaluations, has grown the Property Investment Portfolio to $2.0bn

• NTA per security growth of 9.6% since June 2019 to $4.28, driven by revaluations and retained earnings

• Strong return metrics on capital employed in the business

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 $73m 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. Return on contributed equity is calculated as total operating earnings post-tax per security divided by the opening contributed equity per security

6. 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

7. 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

($m) 30 June 2019 30 June 2020	($m) 30 June 2019 30 June 2020	($m) 30 June 2019 30 June 2020
Cash	114	239
Property investment	1,844	2,028
Development investment	59	48
Other assets1,2	272	238
Intangibles	126	119
Total assets 2,415 2,672
Borrowings2	268	298
Other liabilities	187	228
Total liabilities	455	526
Total equity 1,960 2,146
Contributed equity per stapled security $3.73 $3.71
NTA per stapled security3 $3.90 $4.28
Balance sheet gearing 5.4% 0.0%
Look through gearing 30.8% 29.1%
Return metrics
Return on equity (pre-tax)4 14.8% 22.2%
Return on equity (post-tax)4 12.4% 17.8%
Return on contributed equity (post-tax)5 12.7% 18.6%
Total property investment return6 9.1% 10.0%
Total platform return7 11.1% 18.8%

Charter Hall Group 2020 Full Year Results

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Financial Result

Capital management $5.0bn of liquidity/investment capacity

Funds Platform Balance Sheet gearing (by equity source)

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100.0%
Funds platform debt metrics [1] 30 Jun 19 30 Jun 20
90.0%
Total platform facility limits ($m) 12,872 16,553
80.0%
Total platform undrawn debt ($m) 3,547 3,585
70.0%
Total platform cash ($m) 596 1,411
60.0%
Look through weighted average debt maturity (yrs.) [2] 4.3 4.2
50.0%
Look through weighted average cost of debt [3] 3.6% 2.5%
40.0%
Average Gearing 41.8%
Look through interest rate hedging (%) 62% 61% 29.7%
30.0%
28.2%
20.0%
22.7%
18.3%
10.0%
0.0%
Wholesale Pooled Listed Direct Wholesale
Partnerships
% of Platform FUM: % of Platform FUM: % of Platform FUM: % of Platform FUM:
% of Platform FUM 30% 20% 15% 35%
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1. Total platform includes Corporate debt facility limits of $452m, drawn to nil net of cash

2. Duration is based on facility limits

3. 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

Charter Hall Group 2020 Full Year Results

26

Outlook & Guidance

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GPO Exchange, Adelaide SA

Charter Hall Group 2020 Full Year Results

Outlook & Guidance

FY21 – Year to date activity $1.3bn of net transactions since 30 June 2020

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$0.1bn $0.1bn $0.0bn ($0.1bn) $41.8bn
$0.2bn
$0.2bn
$0.7bn
$40.5bn
Jun-20 Ampol Owens-Illinois Minto Hassall St Brownes Dairy Visy, Epping West Ryde Aug-20
(Visy) Facility Marketplace
Asset type diversification FY21 year to date transactions
Social
Infrastructure
$2.7bn
6.6%
SC Retail
$3.7bn9.1% Industrial & Logistics ($m) Office Industrial &Logistics Long WALE Retail SC Retail Total
$10.9bn
26.8%
-
Long WALE Acquisitions $0.1bn $0.5bn $0.7bn $1.3bn
Retail
$4.7bn
11.6%
- - -
$41.8bn Divestments ($0.1bn) ($0.1bn)
Net
$0.1bn $0.5bn $0.7bn ($0.1bn) $1.3bn
transactions
Gross
Office $0.1bn $0.5bn $0.7bn $0.1bn $1.4bn
transactions
$19.9bn
49.0%
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Charter Hall Group 2020 Full Year Results

28

Outlook & Guidance

FY21 operating earnings guidance

• Based on no material change in current market conditions, FUM growth already achieved in FY21 and assuming the COVID-19 operating environment does not deteriorate markedly from here, FY21 guidance is for post-tax operating earnings per security of approximately 51.0 cps

• FY21 distribution per security guidance is for 6% growth over FY20

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2 Park Street, Sydney NSW

Charter Hall Group 2020 Full Year Results

Additional Information

6.1 Management Team 6.2 Property Funds Management 6.3 Property Investment

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Chullora Logistics Park, 2 Hume Highway, Chullora NSW

Charter Hall Group 2020 Full Year Results

Appendix 6.1 Management Team

Charter Hall Group 2020 Full Year Results

Appendix – Management Team

Management Bench Experience Charter Hall Executive Leadership Group

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David Harrison

Managing Director & Group CEO

33 years industry experience

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Sean McMahon

Chief Investment Officer

• 31 years industry experience

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Russell Proutt

Chief Financial Officer

• 30 years industry experience

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Natalie Devlin

Chief Experience Officer

• 23 years industry experience

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Carmel Hourigan[1]

Richard Stacker

Greg Chubb

Office CEO

Retail CEO

Industrial & Logistics CEO

• 29 years industry 26 years industry 31 years industry experience experience experience

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Steven Bennett

Sheridan Ware

Direct CEO

Chief Information

& Technology Officer

• 19 years industry 21 years industry experience experience

• Commences late 2020 Charter Hall Group 2020 Full Year Results

32

Appendix 6.2 Property Funds Management

Charter Hall Group 2020 Full Year Results

Appendix – Property Funds Management

Charter Hall Group property overview[1]

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$0.1bn
$6.7bn
$3.4bn
$1.7bn
$18.1bn
$36b
$9.9bn
$0.4bn
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1. Excludes 21 New Zealand assets; valued at $0.1bn (predominantly childcare assets) Charter Hall Group 2020 Full Year Results

34

Appendix – Property Funds Management

Charter Hall managed funds

Office $19.6bn

CPOF CHOT BSWF[1] $7.1bn $3.5bn $0.6bn CCT Mandates DVP $ $ $ 0.5bn 0.6bn 0.5bn Chifley 242X/201E CHAIT $1.1bn $0.7bn $0.4bn

DOF PFA $ $ 2.3bn 1.3bn

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CLW
$
1.0bn
Listed Equity
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Social Infrastructure / Other $2.7bn

Industrial & Logistics Shopping Centre Retail Long WALE Retail 10.4bn $3.8bn $4.0bn CPIF CLP CPRF RPs[2] LWHP LWIPs[3] $ $ $ $ $ $ 5.2bn 2.0bn 0.3bn 0.6bn 1.5bn 0.6bn CHALWF CPOF $ 0.3bn $

Industrial & Logistics

$10.4bn

CIB CHET $ $ 0.1bn 0.4bn

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DATs DCSF Other MAXIM
$ $ $ $
0.2bn 0.1bn 0.2bn 0.2bn
BW Trust
$
0.1bn
CLW CQR CQE CLW
$ $ $ $
1.0bn 0.4bn 1.3bn 0.4bn
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DIFs DCSF $ $ 1.5bn 36m

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CLW CQR
$ $
1.3bn 2.8bn
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Note: Numbers 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. RPs include RP1, RP2 and RP6

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

Charter Hall Group 2020 Full Year Results

35

Appendix – Property Funds Management

Wholesale Pooled and Partnerships

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FUM Gearing $ 26.3bn 32[%] Pooled: $12.3bn Partnerships: $14.0bn Occupancy WALE 97[%] 7.7 yrs

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Cap rate CHC investment $ 5.1[%] 1.3bn

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ALDI Brendale Distribution Centre, Brendale QLD

Charter Hall Group 2020 Full Year Results

Appendix – Property Funds Management

Major wholesale property investment portfolio returns

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

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25.6%
13.7% 13.9%
12.8% 12.8% 12.8%
12.2%
11.8%
11.0% 10.8% 10.8%
9.7%
8.3%
2.2% 2.2%
-0.7%
-2.7% -2.7%
CHOT CPOF BSWF CPIF CLP LWHP LWIP LWIP2 CPRF
2015 to 2020 2015 to 2020 2015 to 2020 2015 to 2020 2015 to 2020 2015 to 2020 2015 to 2020 2017 to 2020 2017 to 2020
Net Return (% p.a.) MSCI/IPD Benchmark
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Charter Hall Group 2020 Full Year Results

37

Appendix – Property Funds Management

Listed

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

FUM Gearing
$
8.2bn 23 [%]
Occupancy WALE
98 [%] 10.7
yrs
Cap rate CHC investment [1]
$
5.8 [%] 0.7bn
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1. Held at accounting value not market value
Charter Hall Group 2020 Full Year Results
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242 Exhibition Street, Melbourne VIC

Appendix – Property Funds Management

Charter Hall Direct

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FUM
$
6.1bnbn
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FUM Gearing $ 6.1bnbn 28[%] Occupancy WALE 98[%] 9.0 yrs Cap rate CHC investment $ 5.4[%] 0.1bn

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10 Shelley Street, Sydney NSW

Charter Hall Group 2020 Full Year Results

Appendix – Property Funds Management

Direct funds net return since inception

The active Direct Funds have returned 13.0% p.a out performing the benchmark[1 ] by 4.4%

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

2
Title
Net Return (% p.a.)
Benchmark (% p.a.)
18.9%
15.1%
13.8%
13.0%
11.2%
8.6% 8.5% 9.8% 8.5% 9.6% 9.7% 8.5%
7.7%
7.0%
6.2% 7.9%
5.4%
4.9%
DIF2 (WS) DIF3 (WS) DIF4 BW Trust DAT DAT2 DCSF PFA (Ordinary) DOF (WSA)
2013-2020 2014-2020 2016-2020 2014-2020 2015-2020 2016-2020 2017-2020 2017-2020 2014-2020
Australian Industrial Australian Industrial Australian Industrial Australian Retail Australian Retail Australian Retail Australian Diversified Australian Office Australian Office
& Logistics & Logistics & Logistics
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1. Benchmark refers to the MSCI/IPD Unlisted Core Wholesale Property Fund Index at June 2020.

2. The Professional Planner | The Zenith Fund Awards were issued 11 October 2019 by Zenith Investment Partners (ABN 27 130 132 672, AFSL 226872) and are determined using proprietary methodologies. The Fund Awards 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.

Charter Hall Group 2020 Full Year Results

40

Appendix – Property Funds Management

Leasing activity Deals completed over the last 12 months

	Office	Industrial & Logistics	Long WALE Retail	Shopping Centre Retail	Social Infrastructure
Existing assets leased (lettable area sqm) Major leases	130,500	590,300	-	56,100	84,100
Developments leased (lettable area sqm) Major leases	26,700	178,400	7,000	1,700	8,600
Lettable area (sqm)	157,200	768,700	7,000	57,800	92,700
Value1 $1.9bn $1.8bn $0.04bn $0.5bn $0.5bn
WALE (years) 7.4 7.9 12.3 5.5 11.3

1. Lease NLA/property NLA x property value. Shopping Centre Retail value is Lease income/property income x property value Charter Hall Group 2020 Full Year Results

41

Additional Information

Pledge 1%

As Australia endures droughts, bushfires and COVID-19, our community investment, aligned to Pledge 1%, sees us directly contribute to supporting vulnerable Australians and providing training and employment opportunities

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People

Places

Partnerships

60% our of people contributed to 266 volunteer days

Our team give 1% of their time to:

• personal and team volunteering

• dollar-matched workplace giving

• employee-led initiatives drive fundraising and volunteering opportunities

$1.9m or 45,285sqm of space contributed to the community

We’re actively contributing by:

• identifying and addressing local community needs

• activating vacant or underutilised spaces

• supporting new initiatives that create belonging

$933,000 donated in community partnerships, including $500,000 for bushfire relief and recovery

We support community partners including:

• Australian Red Cross, Foundation for Rural and Regional Renewal (FRRR), Property Industry Foundation, Foundation for Young Australians, Two Good Co. and many others

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42

Charter Hall Group 2020 Full Year Results

Appendix 6.3 Property Investment

Charter Hall Group 2020 Full Year Results

Appendix – Property Investment

CHPT Property Investment portfolio

		Charter Hall	Charter Hall PI
	Ownership stake	Investment	Income	WALE	WACR	WADR	WARR	**PI Yield2 **
	(%)	($m)	($m)	(years)	(%)	(%)	(%)	(%)
Office
Charter Hall Prime Office Fund(CPOF)	6.2	312.9	14.5	7.0	4.9	6.4	3.7	4.8
Charter Hall Office Trust(CHOT)	15.7	293.5	16.2	6.3	4.8	6.3	3.8	6.4
Brisbane Square Wholesale Fund(BSWF)	16.8	101.8	7.7	6.7	5.5	6.7	3.8	7.4
Charter Hall Australian Investment Trust(CHAIT)	10.0	18.2	1.5	3.6	6.5	7.0	3.7	8.8
Counter Cyclical Trust(CCT)	5.0	11.5	0.7	6.2	5.8	6.4	3.6	6.1
201 Elizabeth Street	5.9	9.6	0.2	2.7	5.0	6.5	4.0	3.5
Industrial & Logistics
Charter Hall Prime Industrial Fund(CPIF)	3.6	131.4	6.7	10.2	5.1	6.5	2.9	5.3
Core Logistics Partnership (CLP)	6.9	85.0	5.5	9.7	5.2	6.5	3.0	6.0
Shopping Centre Retail
Charter Hall Retail REIT(ASX:CQR) 3	9.9	207.9	19.9	7.2	6.0	6.7	4.11	7.4
Charter Hall Prime Retail Fund(CPRF)	29.4	47.3	4.1	4.3	6.2	7.1	4.11	7.2
Long WALE Retail
LongWALE Hardware Partnership (LWHP)	13.6	123.6	5.5	8.0	5.0	6.5	2.7	5.3
Charter Hall BP Partnership (BPP)	2.5	12.8	1.6	19.4	5.0	n/a	1.0	9.1
LongWALE Investment Partnerships(LWIPs)	9.6	11.6	0.8	14.4	5.7	n/a	1.2	6.8
Social Infrastructure
Charter Hall Social Infrastructure REIT(ASX:CQE)3	8.9	90.8	5.4	12.7	6.2	n/a	2.1	5.7
Charter Hall Exchanges Trust(CHET)	21.8	70.1	3.6	20.1	4.4	6.1	1.5	6.0
Diversified
Charter Hall LongWALE REIT(ASX:CLW) 3	12.2	271.4	15.9	14.0	5.4	6.6	2.2	6.7
DiscretionaryConsumer Staples Fund(DCSF)	39.7	43.0	3.5	6.8	5.8	6.8	3.1	10.5
Charter Hall DVP Fund(DVP)	13.0	35.5	1.2	3.2	4.8	6.3	3.9	3.9
Other investments4		150.0	5.5	n/a	n/a	n/a	n/a	n/a
Property Investment Total5	12.1	2,027.8	120.0	8.6	5.3	6.5	3.3	6.2

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

3. PI Yield is calculated as operating earnings divided by weighted average investment during the period. Excludes MTM movements in NTA 4. during the year 5.

Held at accounting value not market value

• “Other investments” includes CHC’s 5% stake in Waypoint REIT (ASX: WPR), fair valued at $101.2m as at 30 June 2020 Weighted average ownership stake, excluding other investments

Charter Hall Group 2020 Full Year Results

44

Appendix – Property Investment

Charter Hall Prime Office Fund (CPOF)

Key events during FY20

• The Fund’s Gross Asset Value (GAV) grew by $1.5bn to $7.1bn in the 12 month period to 30 June 2020

• 130 Lonsdale Street reached practical completion in May 2020. The building was fully leased at practical completion with a WALE of 10.3 years

• The Fund’s Weighted Average Debt Maturity increased to 4.8 years (+0.6 years) in the 12 month period to 30 June 2020

• The Fund has successfully raised $947m of new equity in the 12 months to 30 June 2020

Debt expiry profile (by facility limit)[1]

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$1,213m
$700m
$300m
FY21 FY22 FY23 FY24 FY25 FY26+
----- End of picture text -----

Key metrics

Key metrics
Grosspropertyassets	$7.1bn
Gearing (balance sheet)	20.2%
Number of assets	27
Occupancy	97.5%
WALE	7.0years
WACR	4.93%
WARR	3.7%
Charter Hall Interest	6.2%
Charter Hall co-investment	$312.9m

Geographic allocation (by GAV)

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

SA
WA 4%
7%
QLD
10%
NSW
45%
VIC
34%
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1. Reflects CPOF balance sheet debt facilities

45

Charter Hall Group 2020 Full Year Results

Appendix – Property Investment

Charter Hall Office Trust (CHOT)

Key events during FY20

• Leasing – ~85,000sqm of leasing during FY20 including Australian Federal Police (AFP) 30 year pre-commitment at 140 Lonsdale St, Melbourne

• Development – As part of the Wesley Precinct, commenced construction of a new fully leased office tower at 140 Lonsdale Street and achieved Development Approval for the redevelopment of 150 Lonsdale Street

• Capital Management – Increased and extended CHOT’s $1.88bn bilateral debt facility with four domestic and four international banks

Debt expiry profile (by facility limit)

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$567m $567m
$494m
$152m
$100m
CY21 CY22 CY23 CY24 CY25 CY26 CY27
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Key metrics

	Key metrics
	Grosspropertyassets	$3.5bn
	Gearing (balance sheet)	44.9%
	Number of assets	10
	Occupancy	97.0%
	WALE	6.3years
	WACR	4.81%
	WARR	3.8%
	Charter Hall Interest	15.7%
	Charter Hall co-investment	$293.5m

Geographic allocation (by GAV)

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

WA
QLD
1%
7%
VIC NSW
26% 66%
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46

Charter Hall Group 2020 Full Year Results

Appendix – Property Investment

Charter Hall Prime Industrial Fund (CPIF)

Key events during FY20

• Acquisition of 8 core stabilised assets, for $840m with a combined WALE of 13.2 years improving the Fund’s closing WALE to 10.2 years

• 8 developments reached completion with a GAV of $242m

• Executed leases over 233,541sqm of GLA in the Fund’s stabilised portfolio and 136,050sqm of new pre-leases on existing land holdings

• Divested a portfolio of 3 non-core assets. CPIF now has an 90% allocation to the strong performing eastern seaboard markets

• Executed a new $150m debt facility agreement for a 5-year term

Debt expiry profile (by facility limit)

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$823m
$350m
$310m
FY21 FY22 FY23 FY24 FY25+
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Key metrics

	Key metrics
	Grosspropertyassets	$5.2bn
	Gearing (look-through)	18.1%
	Number of assets	70
	Occupancy	97.2%
	WALE	10.2years
	WACR	5.14%
	WARR	2.9%
	Charter Hall Interest	3.6%
	Charter Hall co-investment	$131.4m

Geographic allocation (by GAV)

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TAS
SA 2%
WA 3%
5%
QLD NSW
20% 36%
VIC
34%
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47

Charter Hall Group 2020 Full Year Results

Appendix – Property Investment

Core Logistics Partnerships (CLP)

Key events during FY20

• Acquired a 4.0 ha development site at Glendenning in NSW

• Development completions achieved with combined GAV of $155m at Eastern Creek and Woodpark Estate NSW, Drystone Estate VIC & Woolworths Launceston TAS

• Executed leases over 103,991sqm of GLA in the stabilised portfolio and agreements for lease over 26,292sqm of GLA on existing land holdings

• Executed a new 5-year, $100m debt facility improving debt maturity and lender diversification

Debt expiry profile (by facility limit)

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$288m $288m
$175m
FY21 FY22 FY23 FY24 FY25+
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Key metrics

	Key metrics
	Grosspropertyassets	$2.0bn
	Gearing	32.9%
	Number of assets	37
	Occupancy	99.9%
	WALE	9.7years
	WACR	5.25%
	WARR	3.0%
	Charter Hall Interest	6.9%
	Charter Hall co-investment	$85.0m

Geographic allocation (by GAV)

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TAS
SA
4% NSW
5%
16%
WA
12%
QLD
9%
VIC
54%
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48

Charter Hall Group 2020 Full Year Results

Appendix – Property Investment

Charter Hall Retail REIT (ASX: CQR)

Key events during FY20

• Acquired 20% interest in Pacific Square, Maroubra and Bass Hill Plaza in September 2019 and a total of 47.5% interest in a BP portfolio of Long WALE convenience retail assets in December 2019 and February 2020[1]

• Divested nine assets totalling $196m (Katherine, NT, Cooma, NSW, Bairnsdale, VIC, Moe, VIC, Kyneton, VIC, Erindale, ACT, Carnarvon, WA, Balo Square, NSW and Pemulwuy, NSW)

• Raised $100m and $304m of equity and UPP in February and April 2020 respectively

• Post balance date, acquired 52% share in Coles Distribution Centre, SA and contracted to divest West Ryde in July 2020

• Weighted average debt maturity is 3.9 years with no debt maturing until FY22

• 8.5MW solar installations completed at nine assets with the solar roll-out program under PPA now increased to 27 assets

Debt expiry profile (by facility limit)

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

$350m
$300m
$250m
$200m
$150m
$100m
$50m
$0
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29+
Drawn bank Non-recouse JV USPP's Undrawn
debt facilities drawn bank debt
----- End of picture text -----

1. BP Portfolio consists of 225 assets tenanted by BP

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

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

4. Includes BP portfolio

Key metrics[2]

	Grosspropertyassets	$3.25bn
	Gearing (balance sheet)	22.7%
	Number of Convenience retail assets	51
	Number of LongWALE retail assets	225
	Occupancy	97.3%
	WALE	7.2years
	WACR	6.03%
	WARR3	4.1%
	Charter Hall Interest	9.9%
	Charter Hall co-investment	$207.9m

Geographic allocation (by GAV)[4]

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ACT
3% SA
4%
VIC
14%
NSW
48%
WA
15%
QLD
16%
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49

Charter Hall Group 2020 Full Year Results

Appendix – Property Investment

Charter Hall Long WALE REIT (ASX: CLW)

Key events during FY20

• $1.4bn of earnings accretive investment activity, increasing portfolio WALE and enhancing tenant covenant strength and diversification

• New key tenants including Telstra, BP, Arnott’s and NSW Government

• Increased triple net lease exposure (46% NNN)

• Agreed key lease extensions with major industrial tenants Woolworths, Coles and SUEZ

• Reaffirmed and delivered upgraded FY20 EPS guidance of 28.3 cents despite impacts of COVID-19, demonstrating the resilience and defensive characteristics of CLW’s portfolio

• 5.2% annual EPS growth over FY19

• Portfolio WALE at 30 June 2020 was 14.0 years, up from 12.5 years at 30 June 2019

Sector diversification

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Agri-logistics
7%
Telco
Industrial & Exchanges
Logistics 10%
29%
Long WALE
Retail
27%
Office
27%
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1. Reflects balance sheet gearing, pro forma adjusted for the committed acquisition of Bunnings Palmerston and divestment of the interest in Waypoint REIT announced on 28 July 2020. Unadjusted balance sheet gearing as at 30 June 2020 was 26.1%.

Key metrics

Key metrics
Grosspropertyassets	$3.6bn
Gearing (balance sheet)1	24.2%
Number of assets	386
Occupancy	99.8%
WALE	14.0years
WACR	5.42%
WARR	2.2%
Charter Hall Interest	12.2%
Charter Hall co-investment	$271.4m

Geographic allocation (by GAV)

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NT & TAS
2%
ACT
3%
SA
QLD 9%
20%
NSW
VIC
29%
21%
WA
16%
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50

Charter Hall Group 2020 Full Year Results

Appendix – Property Investment

Charter Hall Social Infrastructure REIT (ASX: CQE)

Key events during FY20

• Completed a $100m institutional placement in May 2020 and $23m unit purchase plan in June 2020 reducing the gearing of CQE to 16.4%

• Settled the acquisition of 11 existing childcare centres ($64.8m) with a further 3 contracted ($12.6m) and forecast to settle in first half of FY21

• Disposed of 40 properties ($59.4m) including 26 properties in New Zealand

• Development pipeline of 24 sites with a forecast completion value of $149.2m

• Portfolio WALE increased to 12.7 years as a result of:

• 45 new 15-20 year leases with two operators

• 48 five year options renewed; and

Key metrics

Key metrics
Gross assets1	$1.3bn
Gearing (balance sheet)2	16.4%
Number of assets3	395
Occupancy4	99.5%
WALE	12.7years
WACR	6.23%
WARR	2.1%
Charter Hall Interest	8.9%
Charter Hall co-investment	$90.8m

• 44 leased extended associated with COVID-19 rental relief

Debt expiry profile (by facility limit)

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$200m $200m
$100m
FY23 FY25 FY26
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1. Excludes cash of $75.6m

2. Look-through gearing of 18.0%

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

4. Vacant properties contracted for disposal

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Geographic allocation (by annual rent)
TAS/NT
0.9%
NZ
SA 3.1%
6.9%
NSW/ACT
WA
22.8%
5.9%
VIC
23.5%
QLD
36.9%
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51

Charter Hall Group 2020 Full Year Results

Additional information

Portfolio performance review dates

	Fund	Portfolio Performance Review Dates
	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
	Core Logistics Partnership (CLP)	FY23 plus individual asset divestment performance fees
	Charter Hall Direct Consumer Staples Fund (DCSF)	5 yearly – FY23
	Charter Hall PFA Fund (PFA)	5 yearly – FY23 plus individual asset divestment performance fees
	Charter Hall Direct BW Trust (BW Trust)	FY24
	Counter Cynical Trust (CCT)	FY25
	Direct Office Fund (DOF)	5 yearly – FY25

52

Charter Hall Group 2020 Full Year Results

Additional information

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 Social Infrastructure REIT

Wholesale funds

Wholesale funds
BSWF	Brisbane Square Wholesale Fund
CHALWF	Charter Hall Aldi Logistics 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, LWIP2	Long WALE Investment Partnership series
RP1, RP2, RP6	Retail Partnership series
DVP	Charter Hall DVP Fund
CHAIT	Charter Hall Australian Investment Trust
CHET	Charter Hall Exchanges Trust
BPP	Charter Hall BP 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

Other
CAGR	Compound Annual Growth Rate
DI	Development Investments
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 2020 Full Year Results

Further information

Presentation authorised by the Board

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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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Sean McMahon

Chief Investment Officer Charter Hall Group

T: +61 2 8651 9147

E: sean.mcmahon@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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Philip Cheetham

Head of Listed Investor Relations Charter Hall Group

T: +61 2 8651 9214

E: philip.cheetham@charterhall.com.au

Charter Hall Group 2020 Full Year Results

54

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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 2020 unless otherwise stated. All references to dollars ($) are to Australian dollars, unless otherwise stated.

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charterhall.com.au

Charter Hall Group 2020 Full Year Results