CHARTER HALL GROUP — Interim / Quarterly Report 2018

Feb 21, 2018

==> picture [141 x 39] intentionally omitted <==

22 February 2018 Charter Hall Group 2018 Half Year Results

6 months to 31 December 2017

Western Sydney University, 1 Parramatta Square, Parramatta NSW

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Agenda

1. Group Highlights

2. Property Funds Management

3. Property Investment

4. Financial Result

5. Outlook and Guidance

6. Additional Information

==> picture [137 x 137] intentionally omitted <==

David Harrison Managing Director & Group CEO

==> picture [137 x 137] intentionally omitted <==

Sean McMahon

Chief Investment Officer & Industrial CEO

==> picture [137 x 137] intentionally omitted <==

Russell Proutt Chief Financial Officer

2

Charter Hall |

Artist impression of GPO Tower, Adelaide, SA

==> picture [128 x 346] intentionally omitted <==

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Group Highlights Group maintained $3.2bn of investment growth capacity

Group Returns $121m statutory profit

==> picture [182 x 51] intentionally omitted <==

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

Funds Management
----- End of picture text -----

Property Investments

11.9% 10.4% FUM growth Total Property to $21.9bn Investment Return[2] (6 months)

==> picture [183 x 147] intentionally omitted <==

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

Balance Sheet
0% balance sheet
gearing [4]
----- End of picture text -----

30.7% OEPS growth $2.0bn in gross 4.3% OEPS $1.6bn Property 26.8% look through transactions growth pcp Investment portfolio gearing[5] (6 months) 2.6% NTA per security 19.5% 6.4% Property 4.5% Property Funds growth[6] Total Platform Return[1] Investment yield Management yield[3] (6 months)

1. Total Platform Return is calculated as growth in net tangible assets (NTA) per security plus distribution per security divided by the weighted average NTA per security for the 12 months to 31 December 2017

2. Total Property Investment (PI) Return is calculated as growth in the PI portfolio value plus distributions received divided by the weighted average PI portfolio value for the 12 months to 31 December 2017

3. Property Funds Management (PFM) yield is calculated as PFM operating earnings per security divided by the weighted average NTA per security for the 12 months to 31 December 2017

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

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

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

4

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Our Strategy

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

==> picture [55 x 43] intentionally omitted <==

==> picture [60 x 58] intentionally omitted <==

==> picture [61 x 54] intentionally omitted <==

ACCESS

DEPLOY

MANAGE

INVEST

Accessing equity from wholesale, retail and listed investors.

Creating value through attractive investment opportunities.

Funds management, asset management, leasing and development services.

Investing alongside our capital partners.

6 MONTHS[1]

$0.9bn gross equity raised

$2.0bn

gross transactions

$2.1bn

FUM growth

$104m increase in PI to $1.6bn

6.8% growth

$1.5bn acquisitions $0.5bn divestments

336 properties

11.9%[2,3] Total Property Investment Return

3 YEAR[1]

5 YEAR[1]

$5.4bn

$11.5bn

$9.2bn

gross equity raised

gross transactions

FUM growth

$7.9bn acquisitions $3.6bn divestments

66 additional properties

$8.4bn

$18.0bn

$11.9bn

gross equity raised gross transactions FUM growth $12.4bn acquisitions 141 additional properties $5.6bn divestments

$836m increase in PI

105.1% growth 23.2%[2] Total Property Investment Return $1.1bn increase in PI 190.7% growth 13.6%[2] Total Property Investment Return

1. For the period ending 31 December 2017

2. Total Property Investment (PI) Return is calculated as growth in the PI portfolio value plus distributions received divided by the weighted average PI portfolio value 3. 12 months to 31 December 2017

5

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Operational Highlights

OFFICE

67 Leasing deals executed across 72,000sqm

Major pre-leases to Vanguard SA Government, CBUS and Telstra Super

INDUSTRIAL

30 Leasing deals executed across 464,000sqm

175,000sqm new pre-leases on existing land holdings

RETAIL

234 Leasing deals executed across 43,000sqm

7 leases executed across 18,000sqm to Majors

130 Lonsdale now 55% pre-leased

$1,004m

gross transactions

9 development projects completion value $2.3bn

$2.9bn new and refinanced debt facilities

$316m

gross transactions

24 development projects completion value $1.7bn

$266m new and refinanced debt facilities

$705m gross transactions with increased non-core divestments as we curate portfolios

14 development projects development spend $392m

$418m new and refinanced debt facilities

1. Figures on this page refer to the 6 months to 31 December 2017

6

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Sustained Growth

FY16 OEPS to FY18 OEPS (guidance) reflects growth of 10.3% per annum

Operating earnings per security growth[1]

Distributions per security growth

==> picture [355 x 312] intentionally omitted <==

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

20.4cps
19.6cps
15.0cps
13.7cps
12.4cps
11.3cps
1H FY13 1H FY14 1H FY15 1H FY16 1H FY17 1H FY18
----- End of picture text -----

==> picture [354 x 317] intentionally omitted <==

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

15.6cps
14.4cps
13.3cps
12.1cps
11.0cps
9.8cps
1H FY13 1H FY14 1H FY15 1H FY16 1H FY17 1H FY18
----- End of picture text -----

1. Operating earnings per security prior to FY14 restated to include security-based benefits expense 2. Compound annual growth rate (CAGR) from 1H FY13 to 1H FY18

7

|

Charter Hall

==> picture [229 x 346] intentionally omitted <==

485 Dohertys Rd, Truganina VIC

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Group Funds Management Portfolio

			Portfolio	Lettable	No. of	No. of	Gross	WALE1	Occupancy	WACR2
			Value ($bn)	Area (m sqm)	Properties	Tenants	Income ($m)	(years)	(%)	(%)
31	Dec	17	21.9	5.5	336	2,617	1,541	7.7	97.8	5.91
30	Jun	17	19.8	5.1	329	2,658	1,454	7.7	98.0	6.07

==> picture [183 x 13] intentionally omitted <==

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

Diversification by equity source
----- End of picture text -----

Asset type diversification WALE by sector

==> picture [776 x 201] intentionally omitted <==

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

Retail Equity
$2.8bn Shopping Centre
9.7
13% Retail
$3.8bn
Office 17% 8.4
$10.0bn
46%
6.3
Listed Fund Long WALE
Retail
$4.4bn
$2.3bn
20% $21.9bn $21.9bn 10%
Wholesale
Equity
$14.6bn
Industrial
67%
$5.8bn
27%
Office Retail Industrial
----- End of picture text -----

1. WALE is the weighted average lease expiry for the Property Funds Management portfolio and is weighted by gross income

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

9

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Funds Under Management Growth

Funds under management movement ($bn)

Funds under management by equity source ($bn)

==> picture [342 x 241] intentionally omitted <==

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

$0.4bn
$21.9bn
$0.6bn
$1.5bn ($0.5bn)
$19.8bn
Jun 2017 Acquisitions Divestments Net Capex Dec 2017
revaluations
----- End of picture text -----

==> picture [345 x 241] intentionally omitted <==

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

$21.9bn
$19.8bn $2.8bn
$17.5bn $2.8bn
$4.4bn
$2.5bn $4.1bn
$13.6bn
$2.5bn
$14.6bn
$11.5bn $1.9bn
$12.9bn
$9.9bn $12.4bn
$1.7bn $2.2bn
$8.4bn $1.7bn $2.0bn
$9.5bn
$1.5bn
$1.8bn
$7.8bn
$1.6bn
$6.5bn
$5.4bn
Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Dec-17
----- End of picture text -----

==> picture [200 x 8] intentionally omitted <==

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

Unlisted Wholesale Listed Unlisted Retail
----- End of picture text -----

1. Compound annual growth rate (CAGR) from 30 June 2012 to 31 December 2017

10

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Property Investment Portfolio Returns

• The Property Investment Portfolios total property return[1] over the five years to 31 December 2017 is 13.6% per annum, outperforming the MSCI/IPD Unlisted Wholesale Property Fund Index (NAV post fees) which returned 10.9% over the same period

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

==> picture [753 x 276] intentionally omitted <==

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

18.3%
18.2%
13.6%
13.3%
12.8% 12.7%12.8%
11.8% 12.1% 12.3% 11.8% 12.2%
10.8% 10.6% 10.8% 10.5% 10.9%
9.7% 9.7% 9.7%
CHOT CPOF CPIF CLP LWHP LWIPs Wholesale SC 2 CQR CLW CHC
2012 to 2017 2012 to 2017 2012 to 2017 2012 to 2017 2012 to 2017 2014 to 2017 2012 to 2017 2012 to 2017 2016 to 2017 2012 to 2017
Office Office Industrial Industrial Retail Retail Retail Retail Diversified Diversified
Net Return (% p.a.) MSCI/IPD Benchmark (% p.a.)
----- End of picture text -----

1. Total Property Investment (PI) Return is calculated as growth in the PI portfolio value plus distributions received divided by the weighted average PI portfolio value for the 12 months to 31 December 2017 2. Includes CHC’s investments in Wholesale Shopping Centre (SC) Funds RP2, RP6 and CPRF

11

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

1H FY18 Transactional Activity

• Consistent transaction volume across core sectors

• Average acquisition value of $70m versus average divestment value of $20m

	($m)	Office	Industrial	Long WALE Retail	Shopping Centre Retail	Total
	Acquisitions	707	311	293	216	1,526
	Divestments	297	6	38	158	499
	Net transactions	409	305	255	58	1,027
	Gross transactions	1,004	316	331	374	2,025

12

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Development Activity

Continues to drive asset creation and attract capital

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

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

• Total pipeline includes 47 office, industrial and retail projects

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

• Average committed project size of $234m for office, $58m for industrial and $16m[1] for retail

Development activity (completion value $m)	Committed projects	Uncommitted projects2	Total Pipeline3
Office	1,405	941	2,346
Industrial	816	856	1,672
Retail1	131	261	392
Total	2,352	2,058	4,410

1. Reflects development spend only and excludes existing centre value

2. Includes potential end value of uncommitted development projects

3. $1.7bn included in FUM at 31 December 2017

13

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Equity Flows

Diversified equity sources with $880m gross equity raised in the 6 months to 31 December 2017:

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

• $480m raised in Wholesale Funds and Partnerships with further equity raising underway in CPOF

• $323m raised in Direct Funds with further equity raising underway in open Direct Funds

($m)	FY15	FY16	FY17	1H FY18
Wholesale Pooled Funds	653	606	776	232
Wholesale Partnerships	598	467	217	248
Listed Funds1	274	76	988	78
Direct Funds2	180	318	355	323
Gross equity raised	1,705	1,467	2,336	880
Net equity raised	1,297	1,099	1,689	783

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

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

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

14

Charter Hall |

WeWork, 333 George Street, Sydney NSW

==> picture [226 x 352] intentionally omitted <==

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Property Investment Portfolio

			Portfolio	No. of	WALE	Occupancy	WARR1	WACR	WADR2
			Value ($m)	Properties	(years)	(%)	(%)	(%)	(%)
31	Dec	17	1,631	303	7.4	97.8	3.5	5.93	7.3
30	Jun	17	1,527	292	7.4	97.7	3.6	6.09	7.3

Top 10 Tenants by Gross Income

Diversification by Property Investment

Diversification by Sector

==> picture [813 x 249] intentionally omitted <==

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

Wesfarmers 11.6% DCSF Wholesale SC
CLW $55m $88m Shopping
Centre Retail
Woolworths 10.0% $194m 25%
CQR Office
CCT
Government 8.3% $8m $325m 38%
BSWF
Telstra 4.0% $101m
Macquarie Bank 2.8% $1,631m
$1,631m
CHOT
Commonwealth Bank 2.5% LWHP
$206m
$84m
Metcash 1.6% LWIPs Long WALE
$31m Retail
Automotive Holdings Group 1.6% CLP 12%
$142m
CPOF
Suncorp 1.3% $245m DIF4 CPIF
$118m Industrial
$30m 25%
Coca Cola 1.0%
----- End of picture text -----

1. WARR is the weighted average rent review and is weighted by gross income

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

16

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Property Investment Portfolio Movement

• During the 6 months to 31 December 2017 the Property Investment Portfolio increased by 6.8% (+$104m) to $1,631m

• The Property Investment yield remains attractive at 6.4%

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

Property Investments movement

Property Investment Portfolio Earnings

==> picture [754 x 284] intentionally omitted <==

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

10.0%
$28m $1,631m $1,631m
$1,527m
$59m
8.0%
$1,098m
$5m 6.0%
$11m $944m
$1,527m
$720m
4.0%
$548m
2.0%
0.0%
Jun 2017 Office Industrial Long WALE Change in Dec 2017 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Dec 17
valuation
PI Portfolio ($m) PI Yield (%)
----- End of picture text -----

17

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Major Tenant Customer Relationships

65% repeat tenant customers across 1,450 leases

• Tenant retention rate of 77.5% in 1H FY18

• CHC continues to be a major player within the sale and leaseback market with over $3.0bn sale and leaseback transactions over the 5 years to 31 December 2017

• CHC continues to see success sourcing off-market opportunities through loyal existing tenant customers

• Management believe there is still opportunity to do more sale and leaseback transactions within new and existing sectors

• Global market volatility likely to continue to assist the sale and leaseback story as corporates continue strategic efforts to ensure balance sheet stability and focus on their core business operations/efficiencies

Examples of CHC’s Sale and Leaseback Relationships

==> picture [97 x 46] intentionally omitted <==

==> picture [100 x 32] intentionally omitted <==

==> picture [87 x 58] intentionally omitted <==

==> picture [102 x 32] intentionally omitted <==

==> picture [89 x 50] intentionally omitted <==

==> picture [101 x 26] intentionally omitted <==

==> picture [110 x 63] intentionally omitted <==

==> picture [141 x 78] intentionally omitted <==

==> picture [68 x 68] intentionally omitted <==

==> picture [94 x 44] intentionally omitted <==

==> picture [126 x 78] intentionally omitted <==

18

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Sustainability

==> picture [123 x 48] intentionally omitted <==

==> picture [79 x 30] intentionally omitted <==

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

==> picture [78 x 77] intentionally omitted <==

Office national average weighted energy ratings of 4.5 Stars . Retail national average weighted energy ratings of 3.75 Stars

250kWh solar system recently installed at Singleton Square. Increasing the renewable footprint in our portfolio to 800kW of solar PV generating over 1200MWh of electricity per annum.

==> picture [338 x 146] intentionally omitted <==

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

Singleton Square, Singleton NSW
----- End of picture text -----

==> picture [134 x 48] intentionally omitted <==

==> picture [52 x 53] intentionally omitted <==

Charter Hall is part of the international Philanthropy movement Pledge 1%. Our Pledge is through:

Our People: Our Places: Our Partnerships

==> picture [102 x 56] intentionally omitted <==

==> picture [64 x 57] intentionally omitted <==

==> picture [91 x 46] intentionally omitted <==

$500,000 Donated to our community partners

161 days $1.4m of our People’s time of space contributed volunteering in the to the community community

==> picture [120 x 48] intentionally omitted <==

==> picture [72 x 41] intentionally omitted <==

Charter Hall has four registered International WELL Buildings Projects

Charter Hall achieved International WELL Building Silver Ratings for New and Existing Interiors in the Perth and Melbourne Offices.

19

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Financial Result

Bunnings Warehouse, Mackay South QLD

==> picture [239 x 344] intentionally omitted <==

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Earnings Summary

• Statutory profit after tax of $120.6m[1]

• Change in Property Investment valuation[2] of $28.3m

• OEPS pre-tax growth of 8.3% to 24.0cps

• PI operating earnings up 23.3% to $51.0m

• PFM operating earnings pre-tax up 21.3% to $60.8m

• DPS growth of 8.4% to 15.6cps comprising:

• 9.4cps distribution from Charter Hall Property Trust (CHPT)

• 6.2cps fully franked dividend from Charter Hall Limited (CHL)  2.7cps of franking credits distributed

$m	1H FY18	1H FY17	Change %
PI operating earnings	51.0	41.3	23.3%
PFM operating earnings pre-tax	60.8	50.1	21.3%
Operating earnings pre-tax	111.7	91.4	22.2%
Tax	(16.6)	(10.6)	(56.2%)
Operating earnings post-tax	95.1	80.8	17.7%
Change in Property Investment valuation2	28.3	99.1	(71.5%)
Amortisation and impairment of intangibles	(1.4)	(3.8)	64.1%
Income taxes3	0.3	(2.8)	111.9%
Other non-operating items	(1.8)	-	-
Total non-operating items	25.5	92.5	(72.5%)
Statutory profit after tax	120.61	173.3	(30.4%)
OEPS pre-tax (cps)	24.0	22.2	8.3%
OEPS post-tax (cps)	20.4	19.6	4.3%
DPS (cps)	15.6	14.4	8.4%
Distribution payout ratio	76%	73%	3.9%

1. Attributed to securityholders

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 3. Non-operating deferred income tax expense

21

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Segment Result

• PI operating earnings growth driven by:

• 3.5% WARR across Property Investments Portfolio

• Strong market rental reversions in Office

• Growth in Property Investments Portfolio

• PFM operating earnings growth driven by:

• PFM revenue growth of 14.7% outpacing total PFM expense growth (including corporate) of 7.2%

	$m	1H FY18	1H FY17	Change %
	PI revenue	50.7	41.1	23.3%
	Interest and expenses	0.3	0.2	33.3%
	PI operating earnings	51.0	41.3	23.3%
	PFM revenue	107.5	93.7	14.7%
	PFM expenses	(34.9)	(32.9)	(5.9%)
	Corporate expenses	(11.9)	(10.7)	(11.1%)
	Total PFM expenses	(46.7)	(43.6)	(7.2%)
	PFM operating earnings pre-tax	60.8	50.1	21.3%
	Operating earnings pre-tax	111.7	91.4	22.2%
	Tax	(16.6)	(10.6)	(56.2%)
	Operating earnings post-tax	95.1	80.8	17.7%
	PI Yield	6.4%	7.0%	(0.6%)
	PFM Yield	4.5%	4.7%	(0.2%)
	PFM EBITDA Margin1	58.3%	55.4%	2.9%
	Corporate MER2	10.9 bps	11.2 bps	(0.3 bps)

The format of Segment Note 3 has been amended in the 1H FY18 Interim Financial Report. The note ceased to include the gross up of proportionately consolidated income and expenses 1. PFM EBITDA Margin calculated as PFM operating earnings (excluding depreciation and tax expense) divided by PFM revenue

1. Corporate MER calculated as Corporate expenses divided by closing FUM, as basis points

22

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Property Funds Management Composition

• PFM revenue up 14.7% to $107.5m

• Investment Management revenue up 16.5% to $82.2m:

• Continued momentum in FUM driving funds management and transaction fees

• Outperformance driving performance fees

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

• Property services revenue up 9.2% to $25.3m:

• Value adding development services

• Successful leasing activity driving high occupancy

$m	1H FY18	1H FY17	Change %
Fund management fees	42.6	35.7	19.3%
Transaction and performance fees	39.6	34.8	13.7%
Investment management revenue	82.2	70.5	16.5%
Property management fees	8.9	7.5	17.7%
Development management fees	7.1	5.5	29.9%
Leasing fees	7.5	8.3	(10.4%)
Facilities and project management fees	1.9	1.9	1.8%
Property services revenue	25.3	23.2	9.2%
PFM revenue	107.5	93.7	14.7%
PFM expenses	(34.9)	(32.9)	(5.9%)
Corporate expenses	(11.9)	(10.7)	(11.1%)
Total PFM expenses	(46.7)	(43.6)	(7.2%)
PFM operating earnings pre-tax	60.8	50.1	21.3%
Tax	(16.6)	(10.6)	(56.2%)
PFM operating earnings post-tax	44.2	39.5	11.9%

23

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Operating Cashflow

• 1H FY18 distribution covered 75% by operating cashflow

• The negative cashflow variance between 1H FY18 operating earnings and operating cashflow is primarily driven by timing and includes:

• An interim payment related to the CHOT performance fee accrued at 31 December to be cash paid in March 2018 (no claw back)[1] . This contributes $25m of the $36m change in working capital movement. The balance of the CHOT Portfolio performance fee is payable in FY20.

• Other working capital movements driven by timing of fees and payment of expenses in the first half

• Timing of cash payment of Property Investment distributions

• Cash payment of FY17 tax and PAYG instalments versus 1H FY18 accrued operating tax expense

==> picture [766 x 241] intentionally omitted <==

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

$95m ($36m)
$73m
($4m) $1m $2m ($4m)
$55m
Operating Earnings Change in working Earnings vs Security based Depreciation Tax expense vs cash Operating Cashflow Distribution
capital distributions received benefits expense tax paid
----- End of picture text -----

24

1. CHOT carries a $110m performance fee liability at 31 December 2017 this liability will reduce to $85m when the $25m interim payment is paid in March 2018

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Balance Sheet

• Strong balance sheet maintained:

• Cash position of $87m to fund identified and pipeline investments

• Considerable financial flexibility with total headstock investment capacity of approximately $250m

• NTA per security growth of 2.6% to $3.69 per security

• Financial return metrics continue to deliver on strategy

$m	31 Dec 2017	30 Jun 2017
Cash	$87m	$174m
Property Investments	$1,631m	$1,527m
Other assets	$137m	$106m
Intangibles	$64m	$65m
Total assets	$1,919m	$1,873m
Total liabilities	$137m	$151m
Total equity	$1,782m	$1,722m
NTA per security1	$3.69	$3.60
Balance sheet gearing2	0.0%	0.0%
Investments look through gearing3	26.8%	20.1%
Return Metrics	31 Dec 2017	30 Jun 2017
Return on Equity4	10.6%	11.6%
Total Property Investment Return5	11.9%	19.8%
Total Platform Return6	19.5%	27.6%

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

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

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

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

4. Return on equity is calculated as total operating earnings post-tax per security divided by the weighted average NTA per security for the 12 month period

5. Total Property Investment (PI) Return is calculated as growth in the PI portfolio value plus distributions received divided by the weighted average PI portfolio value for the 12 months period

6. Total Platform Return is calculated as growth in net tangible assets (NTA) per security equity plus distribution per security divided by the weighted average NTA per security for the 12 month period

25

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Debt and Capital Management

• Substantial funding capacity available across the Group funds platform with $3.2bn of available liquidity

• $3.6bn of new and refinanced debt facilities in 1H FY18

• Look through weighted average debt maturity¹ of 4.0 years

• Look through weighted average cost of debt² of 4.05%

• Look through interest rate hedging of 58% with an average maturity of 3.8 years

	Key debt metrics funds platform	31 Dec 2017	30 Jun 2017
	Combined fund facility limits ($m)	9,601	8,611
	Combined fund undrawn debt ($m)	2,852	2,313
	Total group cash ($m)	310	679
	Look through gearing (%)	26.8%	20.1%
	Look through weighted average debt maturity (yrs)1	4.0	4.3
	Look through weighted average cost of debt2	4.05%	4.09%
	Look through interest rate hedging (%)	58%	65%

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

==> picture [352 x 184] intentionally omitted <==

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

$5bn
33.6%
$4bn
$3bn 38.8%
25.1%
$2bn
$1bn 31.3%
26. 87 %
$0bn
Corporate Office Retail Industrial Diversified
Drawn Debt Undrawn Debt Look Through Gearing
Debt Facility
----- End of picture text -----

1. Duration is based on facility limits

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

26

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Outlook & Guidance

==> picture [200 x 18] intentionally omitted <==

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

231 Elizabeth Street, Sydney NSW
----- End of picture text -----

==> picture [229 x 346] intentionally omitted <==

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

FY18 Earnings Guidance

We believe the property market landscape will continue to accommodate growth

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

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

Our guidance is as follows:

Based on no material change in current market conditions our FY18 guidance for operating earnings per security post-tax is no less than 3% growth on FY17 OEPS of 35.9 cents per security, equivalent to 37.0 cents per security

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

Artist impression of Wesley Place, 130 Lonsdale Street, Melbourne VIC

28

Charter Hall |

441 Dohertys Road, Truganina VIC

|

Charter Hall

9 Castlereagh Street, Sydney NSW

==> picture [128 x 346] intentionally omitted <==

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Charter Hall Group Property Overview[1]

	NSW ACT VIC 8 QLD NT WA SA TAS Office 0 Retail 1 Industrial 1 2 Properties valued at $0.1bn Office 6 Retail 25 Industrial 15 46 Properties valued at $2.7bn Office 4 Retail 9 Industrial 7 20 Properties valued at $0.9bn 73 Properties valued at $4.8bn Office 12 Retail 27 Industrial 34	NSW ACT VIC 8 QLD NT WA SA TAS Office 0 Retail 1 Industrial 1 2 Properties valued at $0.1bn Office 6 Retail 25 Industrial 15 46 Properties valued at $2.7bn Office 4 Retail 9 Industrial 7 20 Properties valued at $0.9bn 73 Properties valued at $4.8bn Office 12 Retail 27 Industrial 34	NSW ACT VIC 8 QLD NT WA SA TAS Office 0 Retail 1 Industrial 1 2 Properties valued at $0.1bn Office 6 Retail 25 Industrial 15 46 Properties valued at $2.7bn Office 4 Retail 9 Industrial 7 20 Properties valued at $0.9bn 73 Properties valued at $4.8bn Office 12 Retail 27 Industrial 34	Office 12 Retail 48 Industrial 23 83 Properties valued at $4.5bn Office 14 Retail 55 Industrial 34 103 Properties valued at $8.7bn Office 1 Retail 6 Industrial 1 8 Properties valued at $0.2bn
	20 Properties valued at $0.9bn
	Office 4 Retail 9 Industrial 7

31

1. Excludes one New Zealand asset

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Charter Hall Managed Funds

Office $10.0bn

Industrial $5.8bn

Retail $6.0bn

==> picture [754 x 334] intentionally omitted <==

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

CHOT CPOF [1] BSWF [1] CLP CPIF LWHP RP2 LWIPs [3]
$2.7bn $3.7bn $0.5bn $1.5bn $2.8bn $1.0bn $0.1bn $0.6bn
75
CCT Mandates RP6 Mandates CPRF
$0.4bn $0.6bn $0.3bn $0.3bn $0.2bn
DOF PFA DIFs/CDC DCSF DAT DAT2 DCSF
$1.2bn $0.3bn $0.8bn $34m [2] $0.1bn $88m $28m [2]
Workzone BW Trust 8
$0.1bn $93m
CLW [2] CLW [2] CQR CLW [2]
$0.5bn $0.7bn $2.9bn $0.4bn
Equity
Wholesale
Retail Equity
Listed Equity
----- End of picture text -----

Note Statistics on this page may not add due to rounding

1. CPOF holds 49.9% of the units in the Brisbane Square Wholesale Funds (BSWF) 2. Diversified across the Office, Industrial and Retail sectors

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

32

Charter Hall |

==> picture [75 x 41] intentionally omitted <==

==> picture [46 x 60] intentionally omitted <==

==> picture [63 x 58] intentionally omitted <==

==> picture [37 x 48] intentionally omitted <==

==> picture [62 x 46] intentionally omitted <==

==> picture [70 x 34] intentionally omitted <==

33

Charter Hall |

==> picture [75 x 41] intentionally omitted <==

==> picture [96 x 87] intentionally omitted <==

==> picture [63 x 58] intentionally omitted <==

==> picture [37 x 49] intentionally omitted <==

==> picture [62 x 46] intentionally omitted <==

==> picture [70 x 34] intentionally omitted <==

34

Charter Hall |

==> picture [76 x 41] intentionally omitted <==

==> picture [64 x 55] intentionally omitted <==

==> picture [63 x 58] intentionally omitted <==

==> picture [36 x 49] intentionally omitted <==

==> picture [68 x 51] intentionally omitted <==

==> picture [71 x 34] intentionally omitted <==

35

Charter Hall |

==> picture [141 x 39] intentionally omitted <==

Charter Hall Direct

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

RICHARD STACKER

GROUP EXECUTIVE – GLOBAL INVESTOR RELATIONS

==> picture [76 x 41] intentionally omitted <==

==> picture [63 x 55] intentionally omitted <==

==> picture [63 x 58] intentionally omitted <==

==> picture [36 x 49] intentionally omitted <==

==> picture [68 x 51] intentionally omitted <==

==> picture [70 x 34] intentionally omitted <==

FUM PROPERTIES $ 3.0 bn 55

OCCUPANCY WALE CAP RATE CHC INVESTMENT $ 99.8 % 9.6 6.25 % 87 m yrs

36

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

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Direct Funds Net Returns Since Inception

The active Direct Funds have returned 12.9% p.a. outperforming the benchmark[1] by 1.2%

==> picture [169 x 50] intentionally omitted <==

==> picture [138 x 52] intentionally omitted <==

==> picture [140 x 82] intentionally omitted <==

==> picture [144 x 84] intentionally omitted <==

20.0% 191%	20.0% 191%	20.0% 191%	20.0% 191%	20.0% 191%	20.0% 191%	20.0% 191%	20.0% 191%	20.0% 191%	20.0% 191%	20.0% 191%	20.0% 191%	20.0% 191%
13.5% 12.5% 12.3% 9.6% 11.1% 12.5% 12.8% 11.8%						14.7% 9.3% 7.1% 13.0% 17.7% . 11.7% 12.2% 12.9% 11.6% 11.4% 10.4% 12.4%
DIF2 2013-2017 Australian Industrial	DIF3 2014-2017 Australian Industrial	DIF4 2016-2017 Australian Industrial	CDC Trust 2014-2017 Adelaide Industrial	BW Trust 2014-2017 Australian Retail			DAT 2015-2017 Australian Retail	DAT2 2016-2017 Australian Retail	Workzone 2014-2017 Perth Office	PFA (Original) 2012-2017 Australian Office	DOF (Ordinary) 2010-2017 Australian Office	DOF (WSA) 2014-2017 Australian Office
Net Return (% p.a.) Benchmark (% p.a.) 1

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

37

|

Charter Hall

==> picture [168 x 18] intentionally omitted <==

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

Coca Cola Amatil, Richlands QLD
----- End of picture text -----

==> picture [229 x 346] intentionally omitted <==

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Property Investment Portfolio

	Ownership Stake (%)	Charter Hall Investment ($m)	Charter Hall PI Income ($m)	WALE (years)	WACR (%)	WADR (%)	WARR (%)	PI Yield 2 (%)
Office		562.3	17.1	5.4	5.6%	7.0%	3.8%	6.3%
Charter Hall Prime Office Fund(CPOF)	9.6%	245.5	6.9	6.4	5.7%	7.0%	3.8%	5.9%
Charter Hall Office Trust(CHOT)	14.3%	206.2	6.6	4.5	5.3%	6.9%	3.8%	6.4%
Brisbane Square Wholesale Fund(BSWF)	16.8%	100.9	3.4	6.3	6.1%	7.3%	3.6%	6.8%
Counter Cyclical Trust(CCT)	5.0%	8.3	0.1	3.8	5.8%	7.0%	3.9%	11.1%
Workzone Trust(Workzone)	2.0%	1.3	0.1	7.7	7.1%	7.5%	4.0%	9.1%
Charter Hall PFA Fund (PFA)	0.1%	0.2	0.0	8.6	7.2%	8.0%	3.4%	7.4%
Industrial		290.9	8.5	9.7	6.2%	7.5%	3.0%	6.0%
Core Logistics Partnership (CLP)	13.8%	142.4	4.2	10.1	6.2%	7.5%	3.0%	6.0%
Charter Hall Prime Industrial Fund (CPIF)	5.9%	118.2	3.2	8.9	6.2%	7.5%	3.1%	5.5%
Direct Investment Fund No. 4 (DIF4)	18.3%	30.3	1.1	11.4	6.4%	7.8%	2.9%	7.6%
Retail		528.5	16.9	6.9	6.0%	7.3%	3.9%	6.8%
Charter Hall Retail REIT(CQR)1	18.7%	325.5	11.5	6.7	6.2%	7.2%	4.1%	7.2%
LongWALE Hardware Partnership (LWHP)	12.9%	83.6	1.7	9.6	5.6%	7.2%	2.9%	5.3%
Charter Hall Prime Retail Fund(CPRF)1	38.0%	44.9	1.4	4.0	5.8%	7.5%	4.4%	6.3%
Retail PartnershipNo. 6(RP6)1	20.0%	36.5	1.0	3.6	5.6%	7.8%	3.5%	6.1%
LongWALE Investment Partnership (LWIP)	5.0%	21.0	0.7	16.7	5.9%	7.2%	2.0%	7.1%
LongWALE Investment Partnership2(LWIP2)	10.0%	10.5	0.4	17.4	5.9%	7.3%	2.0%	6.9%
Retail PartnershipNo. 2(RP2)1	5.0%	6.6	0.2	4.7	5.5%	7.3%	4.4%	6.7%
Diversified		249.3	7.4	11.0	6.3%	7.7%	2.8%	6.6%
Charter Hall LongWALE REIT(CLW)	20.4%	193.9	5.5	11.33	6.2%3	7.6%3	2.8%3	6.5%
Discretionary Consumer Staples Fund (DCSF)4	76.8%	55.4	1.9	9.3	6.7%	8.1%	2.7%	6.9%
Total Property Investments Portfolio		1,631.1	49.9	7.4	5.93%	7.3%	3.5%	6.4%

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

2. PI Yield is calculated as operating earnings divided by weighted average investment during the period . Excludes MTM movements in NTA during the year 3. Includes Virgin Australia Head Office which was acquired 4 January 2018

3. DCSF is included as a direct property investment in the 1H FY18 statutory accounts

39

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Charter Hall Retail REIT (CQR)

Key events during 1H FY18

• Acquired Salamander Bay, NSW and Highfields Village, QLD for the combined consideration of $215.5m

• Divested 11 non-core assets for $229.8m[1]

• Dan Murphy’s at Secret Harbour completed and opened in December 2017

• Lake Macquarie, Mount Hutton and Wanneroo re-developments underway

• Repaid and cancelled $50m debt facility maturing in July 2018

• Weighted average debt maturity of 5.6 years with no debt maturing until FY21

	Key metrics
	Gross property assets	$2.9bn
	Total debt	$1.0bn
	Gearing (balance sheet)2	33.9%
	Number of assets	66
	Occupancy (weighted by GLA)	97.8%
	WALE	6.7
	WACR	6.2%
	WARR	4.1%
	Charter Hall interest	18.7%
	Charter Hall co-investment	$325.5m

Debt expiry profile (by facility limit)

==> picture [350 x 169] intentionally omitted <==

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

$335m $335m
$252m
$177m
$150m
FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28
USPP Non-recourse JV bank debt
Bi-lateral Bank Debt Facilities Syndicated Bank Debt Facility
Undrawn
----- End of picture text -----

Geographic allocation (by GAV)

==> picture [360 x 205] intentionally omitted <==

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

NT
WA 1%
15%
ACT
4%
NSW
47%
SA
5%
VIC
10%
QLD
18%
----- End of picture text -----

1. Divestments calculated at CQR’s share and include divestments settling post balance date

2. December 2017 pro-forma balance sheet gearing post-contracted asset disposals

40

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Charter Hall Office Trust (CHOT)

Key events during 1H FY18

• The portfolio was independently valued at $2.7bn as at 31 December 2017 representing a net valuation increase of 5.0% against the 30 June 2017 book valuations

• Debt refinance was completed – debt facility increased by $100m to $1.3bn and extended term from 2.5 years to 4.0 years

• DA for new tower (circa 16,000sqm) at 140 Lonsdale was approved by the Minister for Planning

Key metrics

	Key metrics
	Gross property assets	$2.7bn
	Total debt	$1.2bn
	Gearing (balance sheet)	41.6%
	Number of assets	10
	Occupancy	98.9%
	WALE	4.5
	WACR	5.3%
	WARR	3.8%
	Charter Hall interest	14.3%
	Charter Hall co-investment	$206.2m

Debt expiry profile (by facility limit)

==> picture [344 x 174] intentionally omitted <==

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

$800m
$500m
FY18 FY19 FY20 FY21 FY22+
----- End of picture text -----

Geographic allocation (by GAV)

==> picture [205 x 178] intentionally omitted <==

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

WA
1%
VIC
24%
QLD
8%
NSW
67%
----- End of picture text -----

41

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Charter Hall Prime Office Fund (CPOF)

Key events during 1H FY18

• CPOF returned 15.3% in the 12 months to 31 December 2017, outperforming the MSCI / IPD Unlisted Wholesale Core Office Index benchmark which returned 14.9% over the same period. CPOF was the highest performing fund in the Index over 3 years to 31 December 2017 (17.2%)

• Significant development leasing progress at CPOF’s key development projects. Major tenants Telstra Super, CBUS and Vanguard secured at 130 Lonsdale St (50+% pre-committed)

• CPOF commenced a $500m equity raising with $340m equity committed at first close. Introduced two new offshore investors

• New unsecured debt facility entered into and facility size extended by $300m to total $1.5bn. The refinance introduces new offshore lending sources to the portfolio

Key metrics

	Key metrics
	Gross property assets	$3.7bn
	Total debt	$0.7bn
	Gearing (balance sheet)	21.6%
	Number of assets	22
	Occupancy	97.8%
	WALE	6.4
	WACR	5.7%
	WARR	3.8%
	Charter Hall interest	9.6%
	Charter Hall co-investment	$245.5m

Debt expiry profile (by facility limit)

==> picture [344 x 174] intentionally omitted <==

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

$700m
$400m $400m
FY18 FY19 FY20 FY21 FY22+
----- End of picture text -----

Geographic allocation (by GAV)

==> picture [212 x 193] intentionally omitted <==

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

WA
12%
SA
1%
NSW
36%
VIC
26%
QLD
25%
----- End of picture text -----

42

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Charter Hall Long WALE REIT (CLW)

Key events during 1H FY18

• Entered agreement to acquire Virgin Australia Head Office in Queensland[1]

• $90.8m purchase price, reflecting a portfolio capitalisation rate of 6.8%

• 100% occupied with 8.4 year WALE at settlement

• Improves portfolio diversification and increases weighting to Eastern Seaboard

• Portfolio revaluations resulted in a total gross uplift of $21.0m

• 1.5% increase on prior book values

• Successfully raised $94.1m of new equity via entitlement offer in December with proceeds utilised to fully fund Virgin Australia Head Office acquisition

• Delivered OEPS of 13.0cps for the period, outperforming PDS target of 12.8cps

Key metrics

	Key metrics
	Gross property assets2	$1.5bn
	Total debt	$0.4bn
	Gearing (balance sheet)3	28.6%
	Number of assets2	81
	Occupancy2	100.0%
	WALE2	11.3
	WACR2	6.2%
	WARR2	2.8%
	Charter Hall interest	20.4%
	Charter Hall co-investment	$193.9m

Debt expiry profile (by facility limit)

==> picture [344 x 173] intentionally omitted <==

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

$470m
FY18 FY19 FY20 FY21 FY22+
----- End of picture text -----

Geographic allocation (by GAV)

==> picture [210 x 193] intentionally omitted <==

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

NSW
11%
WA
23%
QLD
21%
TAS
1%
SA
22%
VIC
22%
----- End of picture text -----

1. Acquisition settled post balance date on 4 January 2018

2. Includes Virgin Australia Head Office which was acquired 4 January 2018

3. Reflects pro-forma 31 December 2017 balance sheet gearing adjusted for the settlement of Virgin Australia Head Office

43

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Core Logistics Partnership (CLP)

Key events during 1H FY18

• CLP have exchanged contracts for the divestment of non-core land parcels with a combined realisation value of $51.0m

• New leases over 190,200sqm of GLA executed during the half. These include 120,700sqm of leases on the Fund’s stabilised portfolio and 69,500sqm of new prelease on the Fund’s existing land holding at Drystone Estate and Connectwest Estate

• Two new pre-leased facilities at Drystone Estate, Victoria reached practical completion. These included Couriers Please (14,800sqm GLA) and Laverton Cold Storage expansion (12,800sqm GLA) with a combined on completion value of $52m

Key metrics

	Key metrics
	Gross property assets	$1.5bn
	Total debt	$0.3bn
	Gearing (balance sheet)	22.2%
	Number of assets	26
	Occupancy	99.8%
	WALE	10.1
	WACR	6.2%
	WARR	3.0%
	Charter Hall interest	13.8%
	Charter Hall co-investment	$142.4m

Debt expiry profile (by facility limit)

==> picture [381 x 174] intentionally omitted <==

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

$450m
FY18 FY19 FY20 FY21 FY22+
----- End of picture text -----

Geographic allocation (by GAV)

==> picture [194 x 194] intentionally omitted <==

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

WA NSW
14% 8%
QLD
12%
TAS
4%
SA
6%
VIC
57%
----- End of picture text -----

44

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Charter Hall Prime Industrial Fund (CPIF)

Key events during 1H FY18

• Acquisition of three assets for $311m settled during the period, this includes Hastings Deering portfolio at Acacia Ridge QLD ($118m) and a newly built Coca Cola facility at Richlands QLD ($157m) both with lease terms of 20 years improving the Fund WALE to 8.9 years from 7.7 years

• New leases over 260,500sqm of GLA were executed. These included 124,200sqm of executed leases on the Fund’s stabilised portfolio and 136,300sqm of new pre-lease on the Fund’s existing land holding

• CPIF exchanged contracts to divest part of Chullora Industrial Park for $23.3m at above book value

Key metrics

	Key metrics
	Gross property assets	$2.8bn
	Total debt	$0.5bn
	Gearing (balance sheet)	19.0%
	Number of assets	52
	Occupancy	94.0%
	WALE	8.9
	WACR	6.2%
	WARR	3.1%
	Charter Hall interest	5.9%
	Charter Hall co-investment	$118.2m

Debt expiry profile (by facility limit)

==> picture [380 x 174] intentionally omitted <==

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

$500m $498m
FY18 FY19 FY20 FY21 FY22+
----- End of picture text -----

Geographic allocation (by GAV)

==> picture [358 x 205] intentionally omitted <==

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

NT
WA
1%
TAS 10%
2%
SA
NSW
1%
34%
VIC
29%
QLD
23%
----- End of picture text -----

45

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Fund Key and Glossary

Listed Entities

CHC	Charter Hall Group
CQR	Charter Hall Retail REIT
CLW	Charter Hall Long WALE REIT
Wholesale
BSWF	Brisbane Square Wholesale Fund
CHOT	Charter Hall Office Trust
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	Long WALE Investment Partnership
LWIP2	Long WALE Investment Partnership No. 2
RP1	Retail Partnership No.1
RP2	Retail Partnership No.2
RP6	Retail Partnership No.6

Direct Funds

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

46

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

Contact Us

==> picture [113 x 114] intentionally omitted <==

==> picture [118 x 118] intentionally omitted <==

==> picture [120 x 123] intentionally omitted <==

David Harrison Managing Director & Group CEO

Charter Hall Group

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

Sean McMahon Chief Investment Officer & Industrial CEO

Charter Hall Group

T: +61 2 02 8651 9147

sean.mcmahon@charterhall.com.au

Philip Cheetham Head Of Listed Investor Relations

Charter Hall Group

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

==> picture [113 x 114] intentionally omitted <==

==> picture [113 x 113] intentionally omitted <==

Russell Proutt

Chief Financial Officer

Charter Hall Group

T: +61 2 8651 9493 russell.proutt@charterhall.com.au

Richard Stacker

Group Executive - Global Investor Relations

Charter Hall Group

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

47

Charter Hall | Charter Hall Group Half Year Results I 22 February 2018

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 31 December 2017 unless otherwise stated. All references to dollars ($) are to Australian dollars, unless otherwise stated.

48

Sydney Head Office Charter Hall | Le ~~vel 20, No.1 Martin Place~~ Sydney, NSW, 2000 T: +61 2 8651 9000

==> picture [248 x 68] intentionally omitted <==

Melbourne

Level 12, 570 Bourke Street Melbourne VIC 3000 T: +61 3 9903 6100

Brisbane

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

Perth

Level 5, St Georges Square 225 St Georges Terrace Perth WA 6000

T: +61 8 9269 5900

Adelaide

Level 2, 80 Pirie Street Adelaide SA 5000

T: +61 8 8417 5900

www.charterhall.com.au