CHARTER HALL GROUP — Earnings Release 2014

Aug 26, 2014

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Charter Hall Limited ASX Release ACN 113 531 150 Charter Hall Funds Management Limited Charter Hall Operating Earnings Per Level 20, No.1 Martin PlaceABN 31 082 991 786 Security up 10.4% GPO Box 2704 Sydney NSW 2001Sydney NSW 2000 27 August 2014 T +61 2 8651 9000 F +61 2 9221 4655 www.charterhall.com.au

Charter Hall Group (ASX:CHC) (‘Charter Hall’ or the ‘Group’) today announced its full year results for the 12 months to 30 June 2014.

Full Year Financial Results Summary:

• Statutory profit after tax of $82.1 million up 50% from $54.8 million

• Operating earnings of $81.2 million up 18.0% from $68.8 million

• Operating earnings of 25.3 cents per security up 10.4%

• Distribution of 22.3 cents per security up 10.4%

• Net Tangible Assets per security of $2.38 up 11.7%

Operational Performance:

• 15% growth in Australian funds under management (‘FUM’) to $11.5 billion

• Secured $1.45 billion of gross equity inflows during the year

• Completed $3.0 billion of property transactions during the year

• Co-invested a further $107 million into property funds during the year

• Property Investment yield increased to 7.7%

Charter Hall’s business is focused on its two key earnings streams, being Property Investment income generated from co-investing alongside our capital partners in property funds and partnerships and earnings generated from Property Funds Management, utilising our full service integrated platform.

Property Investments – Operating Earnings of $49.7 million, up 11.7%

Charter Hall’s Property Investments increased to $720 million during the year and generated an earnings yield of 7.7%. The portfolio has a weighted average lease expiry (‘WALE’) of 7.6 years, which has increased from 5.6 years 12 months ago, whilst maintaining a stable occupancy level at 97%.

Charter Hall has actively reweighted its Property Investment portfolio over the last three years increasing its exposure to long lease industrial and retail property. These sectors now represent 58% of the portfolio, with the remaining 42% invested in high quality predominantly CBD office portfolios.

David Harrison, Joint Managing Director, said: “The Group continues to deliver growth in both Property Investment earnings and Property Funds Management of 11.7% and 26.6% respectively. We will continue to invest alongside capital partners in long WALE investment grade assets leased to strong covenant tenants”.

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Property Funds Management – Operating Earnings of $34.6 million, up 26.6%

Charter Hall’s Australian FUM increased during the year by 15% or $1.6 billion, to $11.5 billion. The Group acquired quality assets comprising $750 million of industrial, $400 million of retail and $650 million of office.

FUM growth was facilitated by $1.45 billion of gross equity inflows secured across Charter Hall’s wholesale pooled and partnership, listed and retail investor funds.

Charter Hall has also continued to focus on redevelopment opportunities to enhance portfolio returns, with $1.2 billion of developments underway across all portfolios. This acquisition and redevelopment activity has also contributed to the strong result from Charter Hall’s property service divisions, with transaction and development management services in particular achieving a positive result.

Charter Hall’s Joint Managing Director, David Southon, said: “We have delivered strong growth in FUM of 15% to $11.5 billion, along with active management of the Group’s property portfolio evidenced by 436 leasing transactions during the year and $3 billion of property transactions. Investment into enhancing the management of our existing portfolios and tenant relationships continues to be a focus for the Group”.

Strategy and Outlook

During financial year 2015, the Group will focus on:

• Continuing to deliver strong fund performance for our investors

• Securing quality assets within our core property sectors

• Active management of our property portfolio

• Investing alongside capital partners

• Focusing on growing high quality earnings streams

• Maintaining growth in FUM across all equity sources

• Improving the efficiency and scalability of the platform.

David Harrison said: “Our strategic decision to increase our weighting to industrial and retail has delivered improved WALE and tenant covenant strength which has enhanced the portfolio quality for Charter Hall and our investors. Looking ahead we expect to deploy our balance sheet capacity alongside capital partners to further grow the Group’s long WALE property portfolios”.

“We continue our focus on active asset management across all sectors, tenant relationships and enhancement of assets to drive optimal outcomes for our investors. The Group’s platform continues to deliver scale benefits through greater sector penetration and transactional activity,” added David Southon.

Absent unexpected events, Charter Hall’s guidance for FY15 operating earnings per security growth is currently towards the lower end of a range of 5-7%, with achievement within this range primarily dependant on the timing of deployment of balance sheet investment capacity in FY15.

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About Charter Hall

Charter Hall Group (ASX:CHC) is one of Australia’s leading fully integrated property groups, with over 23 years’ experience managing high quality property on behalf of institutional, wholesale and retail clients. Charter Hall has over $11.5 billion of funds under management across the office, retail and industrial sectors. The Group has offices in Sydney, Melbourne, Brisbane, Adelaide and Perth.

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

For further information, please contact

For investor enquiries, please contact

For media enquiries, please contact

David Harrison Kylie Ramsden Rachel Mornington-West Joint Managing Director Head of Listed Investor Relations Head of Marketing and Communications T +61 2 8651 9142 Charter Hall Charter Hall david.harrison@charterhall.com.au T +61 2 8651 9204 T +61 2 8651 9248 - kylie.ramsden@charterhall.com.au rachel.mornington David Southon west@charterhall.com.au

Joint Managing Director T +61 2 8651 9143 david.southon@charterhall.com.au

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