CHARTER HALL GROUP — Interim / Quarterly Report 2019

Feb 21, 2019

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22 February 2019 Charter Hall Group 2019 Half Year Results

6 months to 31 December 2018

10 & 12 Shelley Street, Sydney NSW

Charter Hall Group I 2019 Half Year Results

2019 Half Year Results

Agenda

1. Group Highlights

2. Property Funds Management

3. Property Investment

4. Financial Result

5. Outlook and Guidance

6. Additional Information

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David Harrison Managing Director & Group CEO

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Sean McMahon Chief Investment Officer

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Russell Proutt Chief Financial Officer

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Charter Hall Group I 2019 Half Year Results Our Strategy 1. Group Highlights

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Richlands Distribution Facility (Coca Cola Amatil), 220-260 Orchard Road, Richlands QLD

Charter Hall Group I 2019 Half Year Results

Group Highlights

Group highlights[1] Group investment capacity of $2.6bn

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Group returns Property Investments Funds Management Balance sheet
12.0% 22.4% FUM growth to
$108m operating earnings 5.5% balance sheet
Total Property Investment $28.4bn
$134m statutory profit [2] gearing
Return [4] (6 months)
Property Investment $3.8bn in gross
13.0% OEPS 33.2% look through
portfolio $1.8bn transactions
growth pcp gearing
30.7% OEPS growth (6 months)
(6.7% growth)
12.3% 6.0% Property Investment 4.9% Property Funds Weighted average debt
Total Platform Return [3] yield Management yield [5] maturity 7.1yrs
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1. Figures and statistics on this slide and throughout this presentation are for the 6 months to 31 December 2018 unless otherwise stated

2. Attributable to stapled securityholders

3. Total Platform Return is calculated as growth in net tangible assets (NTA) per security plus distributions per security divided by the opening NTA per security for the 12 months to 31 December 2018

4. Total Property Investment Return is calculated as distributions received from funds plus growth in investment value divided by the opening investment value of the PI portfolio for the 12 months to 31 December 2018. This excludes investments held for less than a year and investments in Direct funds

5. Property Funds Management (PFM) yield is calculated as PFM operating earnings post tax per security (includes 50% allocation of net interest) divided by the opening NTA per security for the 12 months to 31 December 2018

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Charter Hall Group I 2019 Half Year Results

Group Highlights

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

Deploy

Creating value through attractive investment opportunities

Manage

Funds management, asset management, leasing and development services

Invest

Investing alongside our capital partners

6 MONTHS

GROSS EQUITY RAISED $1.2bn

GROSS EQUITY RAISED	GROSS		FUM
$1.2bn	TRANSACTIONS $3.8bn		$28.4bn
	ACQUISITIONS	DIVESTMENTS	PROPERTIES
3 YEAR	$3.1bn	$0.7bn	820
GROSS EQUITY RAISED	GROSS		FUM GROWTH
$6.0bn	TRANSACTIONS $14.5bn		$12.5bn
	ACQUISITIONS	DIVESTMENTS
5 YEAR	$10.1bn	$4.4bn
GROSS EQUITY RAISED	GROSS		FUM GROWTH
$13.5bn	TRANSACTIONS $31.3bn		$17.9bn
	ACQUISITIONS $22.0bn	DIVESTMENTS $9.3bn

INCREASE IN PI TO $1.8bn $115m 6.7%

TOTAL PROPERTY INVESTMENT RETURN 12.0%[1] INCREASE IN PI $518m 28.5% TOTAL PROPERTY INVESTMENT RETURN 13.3% INCREASE IN PI $1.2bn 65.8 % TOTAL PROPERTY INVESTMENT RETURN 14.2%

1. 12 months to 31 December 2018

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Charter Hall Group I 2019 Half Year Results

Group Highlights

Operational highlights

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Office

95 LEASING DEALS EXECUTED ACROSS 134,000sqm

Industrial

17 LEASING DEALS EXECUTED ACROSS 197,000sqm

Retail

210 LEASING DEALS EXECUTED ACROSS 52,000sqm

Social Infrastructure

12 LEASING DEALS EXECUTED ACROSS 6,000sqm

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130 LONSDALE

72%

PRE-LEASED

$2,295m GROSS TRANSACTIONS

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DEVELOPMENT PROJECTS COMPLETION VALUE $2.6bn

$1.4bn

NEW AND REFINANCED DEBT FACILITIES[1]

$818m

GROSS TRANSACTIONS

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DEVELOPMENT PROJECTS COMPLETION VALUE $2.2bn

$869m

NEW AND REFINANCED DEBT FACILITIES[1]

LEASES EXECUTED ACROSS

29,000sqm TO MAJORS

$680m

GROSS TRANSACTIONS

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DEVELOPMENT PROJECTS DEVELOPMENT SPEND $285m

$1.5bn

NEW AND REFINANCED DEBT FACILITIES[1]

$11m

GROSS TRANSACTIONS

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DEVELOPMENT PROJECTS DEVELOPMENT SPEND $167m

$347m

NEW AND REFINANCED DEBT FACILITIES[1]

1. Reflects new and refinanced debt facilities within CHC managed funds.

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Charter Hall Group I 2019 Half Year Results

Group Highlights

Sustained growth

Strong growth in earnings underpinning distribution growth

Operating earnings per security growth

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Operating earnings per security growth Distributions per security growth
DPS (grossed up) 2
DPS
Pre-tax OEPS
Post-tax OEPS 27.7cps 1, 2
1 20.0cps
24.0cps 1 18.3cps
1
23.1cps
19.6cps
16.5cps
14.4cps
20.4cps 13.3cps 15.6cps
12.1cps
15.0cps
11.0cps
13.7cps
12.4cps
1H FY14 1H FY15 1H FY16 1H FY17 1H FY18 1H FY19 1H FY14 1H FY15 1H FY16 1H FY17 1H FY18 1H FY19
10.5% 10.5% 30.7% 4.2% 13.0% 10.0% 9.9% 8.3% 8.3% 6.0%
1. Compound annual growth rate (CAGR) from 1H FY14 to 1H FY19
2. Grossed up distribution includes franking credits of 3.5cps paid to securityholders in 1H FY19 (2.7cps in 1H FY18)
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Charter Hall Group I 2019 Half Year Results

2. Property Funds Management

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ATO Building, 12-26 Franklin Street, Adelaide SA

Charter Hall Group I 2019 Half Year Results

Property Funds Management

Group funds management portfolio 83% east coast weighting

			Portfolio Value	Lettable Area	No. of	No. of	Gross Income	WALE1	Occupancy	WACR2
			($bn)	(m sqm)	Properties	Tenancies	($m)	(years)	(%)	(%)
31	Dec	18	28.4	6.3	820	3,157	1,883	8.0	98.1	5.65
30	Jun	18	23.2	5.4	330	2,447	1,634	7.7	98.1	5.74

Diversification by equity source

Asset type diversification

WALE by sector

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Retail Social Other
Equity Infrastructure $0.4bn Shopping Centre
Retail
$4.5bn $1.2bn 1% $3.9bn 10.2
16% 4%
14% 9.3
8.0
Long WALE
Retail 6.7
$2.7bn
Wholesale 10%
Listed Fund $5.8bn $28.4bn $18.1bnEquity $28.4bn
20% 64%
Office Industrial
$13.1bn $7.1bn
46% 25% Office Retail Social Industrial
Infrastructure
WALE is the weighted average lease expiry for the Property Funds Management portfolio and is weighted by gross income
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1. WALE is the weighted average lease expiry for the Property Funds Management portfolio and is weighted by gross income

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

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Charter Hall Group I 2019 Half Year Results

Property Funds Management

Funds under management growth 5 year FUM growth of 22.3% per annum

• Post 31 December 2018, the DVP wholesale partnership was formed with seed assets totaling $113m including the 50.5% interest in 1 Brisbane. CHC has sold down to a 10% interest with 90% owned by two institutional investors. DVP has total additional capacity of $500m.

Funds under management movement ($bn)

Funds under management by equity source ($bn)

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Wholesale Listed Retail
$28.4bn
$4.5bn
$28.4bn
$0.5bn
$0.7bn
$23.2bn
$1.6bn
$5.8bn
$3.1bn ($0.7bn) $2.9bn
$19.8bn
$17.5bn $2.8bn $4.4bn
$18.1bn
$2.5bn
$23.2bn $4.1bn
$13.6bn $15.9bn
$2.5bn
$11.5bn $1.9bn
$12.9bn
$12.4bn
$1.7bn $2.2bn
$2.0bn $9.5bn
$7.8bn
Jun-18 Acquisitions Divestments Folkestone Net Capex Dec-18 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Dec-18
Acquisition revaluations
18.0% 28.7% 13.7% 17.0% 22.4%
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Charter Hall Group I 2019 Half Year Results

Property Funds Management

Major property investment portfolio returns

• 1

• • The Property Investment Portfolios total property return over the five years to 31 December 2018 is 14.2% per annum, outperforming the MSCI/IPD Unlisted Wholesale Property Fund Index (NAV post fees) which returned 11.1% over the same period

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

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21.2%
15.9%
13.7% 14.4%13.7% 13.6% 14.0% 14.2%
12.9%
11.8% 11.8%
11.1% 11.1% 11.1%
10.4%
9.5% 9.5% [3]
8.9% 8.9% 8.9%
8.1%
7.6% [4]
2
CHOT CPOF BSWF CPIF CLP LWHP LWIPs Wholesale SC CQR CLW CHC
2013 to 2018 2013 to 2018 2017 to 2018 2013 to 2018 2013 to 2018 2013 to 2018 2014 to 2018 2013 to 2018 2013 to 2018 2016 to 2018 2013 to 2018
Office Office Office Industrial Industrial Retail Retail Retail Retail Diversified Diversified
Net Return (% p.a.) MSCI/IPD Benchmark (% p.a.)
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1. Total Property Investment Return is calculated as distributions received from funds plus growth in investment value divided by the opening investment value of the Property Investment Portfolio. This excludes investments held for less than a year and investments in Direct funds.

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

3. S&P ASX 200 / Retail A-REIT index (Source: UBS Australian REIT Month in Review – December 2018)

4. S&P ASX 200 A-REIT Accumulation index (Source: IRESS)

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Charter Hall Group I 2019 Half Year Results

Property Funds Management

1H FY19 transactional activity

• Acquisition activity led by the Office and Industrial sectors

($m)	Office	Industrial	Long WALE Retail	Shopping Centre Retail	Social Infrastructure	Total
Acquisitions	1,850	730	317	161	9	3,067
Divestments	(445)	(88)	(38)	(164)	(2)	(737)
Net transactions	1,405	642	279	(3)	7	2,330
Gross transactions	2,295	818	355	325	11	3,804

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10 Shelley Street, Sydney NSW 12 Shelley Street, Sydney NSW
(Suncorp) (American Express)
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196-200 Maggiolo Drive, Paget, 35-45 Frankston Road, Dandenong VIC
South Mackay QLD (Bunnings) (Bombardier)
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Charter Hall Group I 2019 Half Year Results

Property Funds Management

Development activity Continues to drive asset creation and attract capital

• Development completions have added $2.6bn of FUM over the last 3 years

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

• Development pipeline has increased from $2.6bn in December 2015 to $5.3bn today

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

Development activity	Completions	Committed	Uncommitted	Total
(completion value $m)	(12 months)	projects	projects2	pipeline3
Office	673	1,089	1,499	2,588
Industrial	408	590	1,646	2,236
Retail1	69	153	132	285
Social Infrastructure	42	103	64	167
Total / weighted average	1,192	1,935	3,341	5,276

1. Reflects development spend only and excludes existing centre value

2. Includes potential end value of uncommitted development projects

3. $1.8bn included in FUM at 31 December 2018

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Charter Hall Group I 2019 Half Year Results

Property Funds Management

Leasing activity Deals completed over the last 12 months

	Office	Industrial	Retail	Social Infrastructure
Existing assets leased (lettable area) Major leases	131,403	284,947	89,403	12,197
Developments leased (lettable area) Major leases	53,888	99,154	-	-
Lettable Area	185,291	384,101	89,403	12,197
Value1 $1.97bn $0.76bn $0.69bn $0.06bn
WALE (years) 8.6 9.2 6.0 10.1

1. Lease NLA/property NLA x property value. Retail value is Lease gross income/property gross income x property value

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Charter Hall Group I 2019 Half Year Results

Property Funds Management

Equity flows

Diversified equity sources with $1,220m gross equity raised in the 6 months to 31 December 2018:

• Across the Group, thirteen funds have raised equity in the half

• $172m raised in Listed funds with CLW completing two successful equity raisings

• Continued strength in Direct Funds with $305m raised in the half

($m)	FY16	FY17	FY18	1H FY19
Wholesale Pooled Funds	606	776	649	638
Wholesale Partnerships	467	217	322	105
Listed Funds1	76	988	77	172
Direct Funds2	318	355	653	305
Gross equity raised	1,467	2,336	1,701	1,220
Net equity raised	1,099	1,689	1,487	1,125

• Equity flows includes equity received or returned only and excludes undrawn equity commitments 1. Listed Funds include equity raised in CHC, CQR, CLW & CQE

• Funds and syndicates for retail, SMSF and high net worth investors

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Charter Hall Group I 2019 Half Year Results

3. Property Investment

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Dandenong South Industrial Centre (Bombardier), 34-35 Frankston Road, Dandenong VIC

Charter Hall Group I 2019 Half Year Results

Property Investment

Property Investment portfolio 81% east coast weighting

			Portfolio Value	No of	WALE	Occupancy	WARR1	WACR	WADR2
			($m)	Properties	(years)	(%)	(%)	(%)	(%)
31	Dec	18	1,821	762	7.5	97.8	3.5	5.73	7.0
30	Jun	18	1,706	298	7.2	97.9	3.6	5.80	7.1

Diversification by Property Investment

Diversification by sector

Geographic allocation

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Wholesale Social
DVP CQE SC Infrastructure WA NZ
DCSF $27m $116m $104m 6% 13% 1%
Shopping TAS
$46m CQR Centre Retail 1%
CLW $310m 23% ACT NSW
1%
$218m 40%
SA
CCT Office 3%
$12m 40%
LWHP
BSWF $1,821m$1,821m $93m $1,821m $1,821m
$105m Long WALE
LWIPs Retail VIC
$11m 10% 20%
CLP
CHOT $103m
$252m
CPIF
DIF4 $124m
CPOF
$31m Industrial QLD
$269m 21% 21%
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1. WARR is the weighted average rent review and is weighted by gross income

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

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Charter Hall Group I 2019 Half Year Results

Property Investment

Property Investment portfolio movement

• During the 6 months to 31 December 2018 the Property Investment Portfolio increased by 6.7% (+$115m) to $1,821m predominantly driven by the investment in CQE

• PI yield of 6.0% remains attractive

• The decrease in yield continues to be driven by the improved quality and WALE of the Portfolio

Property Investment movement

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($13m)
$50m
$1,821m
$114m
$25m ($43m)
$1,706m
($18m)
Jun 18 Office Industrial Retail Social Change in Other Dec 18
Infrastructure valuation
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Property Investment portfolio yield

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10.0%
$1,821m
$1,706m
$1,527m 8.0%
$1,098m 6.0%
$944m
$720m 4.0%
2.0%
0.0%
Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Dec 18
PI Portfolio ($m) PI Yield (%)
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Charter Hall Group I 2019 Half Year Results

Property Investment

Diversified earnings resilience

Top 10 asset exposures represent only 10.8% of earnings

• 71% repeat customers across 1,824 leases

• Tenant retention rate of 78% for the six months to 31 Dec 2018

Top 10 asset exposures[1]

Top 10 tenants by gross income

Property Investment earnings (by Sector)

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(by Sector)
Woolworths 9.6% Social
Infrastructure
Wesfarmers 7.8% 3%
Shopping
Government 6.9% Centre
Retail
27%
Coles Group 5.9%
Commonwealth Bank 3.8%
Office
37%
Telstra 3.2%
Suncorp 2.4%
Long
WALE
Goodstart Early Learning 2.2% Retail
10%
Inghams 2.1%
Industrial
Metcash 1.6%
23%
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1 1.7%
# 2 1.6%
# 3 1.3%
# 4 1.3%
# 5 1.1%
# 6 1.0%
# 7 0.8%
# 8 0.7%
# 9 0.7%
# 10 0.6%
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1. Asset exposure measured as Gross income of property, weighted for CHPT ownership stake, divided by post-tax OEPS

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Charter Hall Group I 2019 Half Year Results

Property Investment

Sustainability

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ENHANCING WORKPLACE

Becoming a leader in health and wellbeing in our communities by:

• Increasing our footprint of WELL rated buildings

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BUILDING COMMUNITY

Creating Australia’s largest community network of hubs:

• Supporting Two Good to deliver 20,000 meals to domestic violence shelters across Australia

• Registering the CHOT Portfolio in the inaugural WELL Portfolio pilot

• Developing our Human Rights Framework and understanding the modern slavery risks in our supply chain

• Building community spaces for our customers, which are supported by social enterprise, such as Portal at 1 Martin Place, Sydney NSW

• Creation of new Charli app for enhanced workplace experience for tenant customers

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ECO INNOVATION

Working towards net zero emissions and resilient communities by:

• Developing a carbon emission reduction pathway to net zero

• Continued investment in renewable energy with an additional 2,175kWh solar PV installed between Jul-Dec 2018 across Industrial, Office, Retail and Bunnings assets. Increasing renewables in our portfolio to 4,081kW of solar PV generating over 6,111MWh of electricity per annum, which equates to powering 407 homes.

• Committing to an additional 11,316 kW of solar PV, across 14 retail shopping centres. Once completed, generating 16,950 MWh of electricity per annum, enough energy to power and additional 1,130 homes

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Portal Café on The Mezzanine, 1 Martin Place, Sydney NSW
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Charter Hall Group I 2019 Half Year Results

4. Financial Result

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Western Sydney University, 1 Parramatta Square, Parramatta NSW

Charter Hall Group I 2019 Half Year Results

Financial Result

Earnings summary

• EBITDA of $134.2m, a 19.0% increase over 1H FY18

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

• Interest expense in the half attributable to USPP issuance that funded in August

• Operating earnings and OEPS growth of 13.0% to $107.5m and 23.1cps

• DPS growth of 6.0% to 16.5cps at a distribution payout ratio of 72%

• 3.5cps of franking credits distributed

	($m) Propertyinvestment(PI)	1H FY19 52.1	1H FY18 50.2	Change % 3.8%
	Development investment(DI)	1.4	-	-
	Propertyfunds management(PFM) EBITDA	80.7 134.2	62.6 112.8	28.9% 19.0%
	Depreciation	(2.4)	(1.9)	(26.1%)
	Interest expense/income Operating earnings pre-tax	(2.9) 128.9	0.8 111.7	- 15.4%
	Tax	(21.4)	(16.6)	(28.5%)
	Operating earnings post-tax	107.5	95.1	13.0%
	Non operating items
	Change inpropertyinvestment valuation1	48.7	48.6	0.2%
	Other non-operatingitems1	(22.7)	(23.1)	1.7%
	Statutory profit after tax	133.5	120.6	10.7%
	OEPSpre-tax(cps)	27.7	24.0	15.4%
	OEPSpost-tax(cps)	23.1	20.4	13.0%
	DPS(cps)	16.5	15.6	6.0%
	Distributionpayout ratio	72%	76%	-

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

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Charter Hall Group I 2019 Half Year Results

Financial Result

Property funds management

• PFM revenue up 24.8% to $126.2m

• Investment management revenue up 27.5% to $104.8m:

• Continued momentum in FUM driving funds management fee growth of 21.6%

• Transaction fees earned from active acquisition and divestment program

• $20m of the CHOT performance fee has been accrued in the half[2]

• Property services revenue up 13.2% to $21.4m:

• Successful leasing activity supporting high occupancy

• Total revenue growth of 24.8% outpacing expense growth of 18.4%

($m)	1H FY19	1H FY18	Change%
Fund management fees	51.8	42.6	21.6%
Transaction and performance fees	53.0	39.6	33.8%
Investment management revenue	104.8	82.2	27.5%
Property management fees1	6.6	5.8	13.8%
Development fees	6.9	7.1	(2.8%)
Leasing fees1	6.0	4.1	46.3%
Facilities and project management fees	1.9	1.9	0.0%
Property services revenue	21.4	18.9	13.2%
PFM revenue	126.2	101.1	24.8%
PFM expenses1	(32.9)	(26.6)	(23.7%)
Corporate expenses	(12.6)	(11.9)	(5.9%)
Total PFM expenses	(45.6)	(38.5)	18.4%
PFM EBITDA	80.7	62.6	28.9%
PFM EBITDA Margin	63.9%	61.5%	2.4%

1. 1H FY18 includes a restatement between property management fees and leasing fees $6.4m and PFM expenses $6.4m relating to a move to Retail leasing cost recovery. No impact to PFM EBITDA 2. As at 31 December 2018, CHOT accrued a total performance fee liability of $105m

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Charter Hall Group I 2019 Half Year Results

Financial Result

Operating cashflow

• 1H FY19 distribution covered 93% by operating cashflow

• Similar to previous years, operating cashflow is anticipated to fully cover FY distributions

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$5m
($38m)
$8m
$108m
($11m)
$77m
$71m
1
Operating Earnings Earnings vs distributions Non-cash items Change in working capital Tax expense vs Operating Cashflow Distribution
received cash tax paid
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1. Includes CHOT performance fee accrual of $20m (to be cash paid in FY20)

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Charter Hall Group I 2019 Half Year Results

Financial Result

Balance sheet and return metrics

• Strong balance sheet maintained:

• Considerable financial flexibility with undrawn lines and cash in hand

• NTA per security remains at $3.82

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

• Strong return metrics on capital employed in the business

	($m)	31 Dec 2018	30 June 2018
	Cash	115	95
	Property investment	1,821	1,706
	Development investment	88	58
	Other assets1,2	192	92
	Intangibles	135	63
	Total assets	2,351	2,014
	Borrowings2	268	0
	Other liabilities	159	156
	Total liabilities	427	156
	Total equity	1,924	1,858
	NTA per stapled security3	$3.82	$3.82
	Return Metrics	31 Dec 2018	30 June 2018
	Return on equity (pre-tax)4	12.8%	12.1%
	Return on equity (post-tax)4	11.0%	10.5%
	Total property investment return5	12.0%	12.3%
	Total platform return6	12.3%	15.0%

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 $76m, distributions and fees receivable

2. Net of swap mark-to-market of $19.5m relating to the USPP notes (representing USPP repayment value of $231.5m)

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

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

5. Total Property Investment Return is calculated as distributions received from funds plus growth in investment value divided by the opening investment value of the PI portfolio for the 12 months to 31 December 2018. This excludes investments held for less than a year and investments in Direct funds

6. Total Platform Return is calculated as growth in net tangible assets (NTA) per security plus distributions per security divided by the opening NTA per security for the 12 months to 31 December 2018

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Charter Hall Group I 2019 Half Year Results

Financial Result

Debt and capital management

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

• Substantial funding capacity available across the Group with $2.6 billion of available liquidity

• $4.1 billion of new and refinanced debt facilities agreed in 1H19 with no material maturities in FY20

	Key debt metrics funds platform	31 Dec 2018	30 Jun 2018
	Combined fund facilitylimits($m)	11,849	10,256
	Combined fund undrawn debt($m)	2,287	2,870
	Totalgroupcash($m)	298	526
	Look throughgearing (%)	33.2%	27.3%
	Look through weighted average debt maturity (yrs)1	4.0	4.3
	Look through weighted average cost of debt2	4.05%	4.17%
	Look through interest rate hedging (%)	53%	56%

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

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4,500 Undrawn Debt
Drawn Debt
4,000 33.7%
3,500
3,000
2,500
2,000 37.1%
1,500
26.4%
1,000
500
37.0%
5.5% 27.7%
0
Corporate Office Retail Industrial Diversified Social
Infrastructure
Debt Facility ($m)
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1. Duration is based on facility limits

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

26

Charter Hall Group I 2019 Half Year Results

5. Outlook & Guidance

27

Only About Children, 160-162 Victoria Road, Northcote VIC

Charter Hall Group I 2019 Half Year Results

Outlook & Guidance

FY19 earnings guidance

We believe the property market landscape will continue to accommodate growth

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

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

Our guidance is as follows:

Based on no material change in current market conditions, our FY19 guidance is for 14%-17% growth in post-tax operating earnings per security over FY18

FY19 guidance includes a $40m accrual ($20m in each half) for the CHOT performance fee

The distribution payout ratio is expected to be between 70% and 95% of operating earnings per security post-tax

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10 Shelley Street, Sydney NSW
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28

Charter Hall Group I 2019 Half Year Results

6. Additional information - Property Funds Management - Property Investment

29

Charter Hall Group I 2019 Half Year Results

Appendix 6.1 Property Funds Management

30

Only About Children, 40-411 South Road, Brighton East VIC

Charter Hall Group I 2019 Half Year Results

Appendix – Property Funds Management

Charter Hall group property overview[1]

	4 Properties valued at $0.1bn	NSW ACT 8 QLD NT SA TAS 191 Properties valued at $6.3bn VIC Office 14 Retail 30 Industrial 44 Social Infrastructure 102 Other 1	NSW ACT 8 QLD NT SA TAS 191 Properties valued at $6.3bn VIC Office 14 Retail 30 Industrial 44 Social Infrastructure 102 Other 1	NSW ACT 8 QLD NT SA TAS 191 Properties valued at $6.3bn VIC Office 14 Retail 30 Industrial 44 Social Infrastructure 102 Other 1	NSW ACT 8 QLD NT SA TAS 191 Properties valued at $6.3bn VIC Office 14 Retail 30 Industrial 44 Social Infrastructure 102 Other 1	228 Properties valued at $5.6bn
	Office 0 Retail 1 Industrial 1 Social Infrastructure 2					Office 17
						Retail 51
						Industrial 29
						Social Infrastructure 131
	WA 71 Properties valued at $3.0bn Office 6 Retail 25 Industrial 22
						218 Properties valued at $11.9bn
						Office 20 Retail 54 Industrial 49 Social Infrastructure 93 Other 2
	47 Properties valued at $1.0bn Social Infrastructure 18	191
						12 Properties valued at $0.3bn
	Office 3 Retail 8 Industrial 8 Social Infrastructure 28
						Office 2
						Retail 6
						Industrial 2
						Social Infrastructure 2

1. Excludes 49 New Zealand assets; predominantly childcare valued at $0.2bn

31

Charter Hall Group I 2019 Half Year Results

Appendix – Property Funds Management

Charter Hall managed funds

Office $13.2bn Industrial $7.1bn

Retail $6.6bn

Social Infrastructure/ Other $1.5bn

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CHOT CPOF [1] BSWF [1] CLP CPIF LWHP RP2 LWIPs [3] CIB
$2.9bn $5.3bn $0.6bn $1.8bn $3.4bn $1.2bn $0.1bn $0.6bn $0.1bn
CCT Mandates DVP RP6 Mandates CPRF
$0.5bn $0.5bn $0.1bn $0.3bn $0.3bn $0.4bn
DOF PFA DIFs/CDC DCSF [2] DATs DCSF [2] Maxim
$2.0bn $0.7bn $1.0bn $37m $0.2bn $84m $0.1bn
SOPs BW Trust Altona Other
$0.1bn $0.1bn $47m $0.2bn
CLW [2] CLW [2] CQR CLW [2] CQE
$0.5bn $0.9bn $2.8bn $0.5n $1.1bn
Equity
Wholesale
Retail Equity
Listed Equity
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Note Statistics on this page may not add due to rounding

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

2. Diversified across the Office, Industrial and Retail sectors

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

32

Charter Hall Group I 2019 Half Year Results

Appendix – Property Funds Management

Office

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

ADRIAN TAYLOR OFFICE CEO

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FUM PROPERTIES $ 13.2 bn 62

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OCCUPANCY 97.7 %

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WALE CAP RATE CHC INVESTMENT 6.7 5.34 % $ 722 m yrs

33

Charter Hall Group I 2019 Half Year Results

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34

Charter Hall Group I 2019 Half Year Results

Appendix – Property Funds Management

Retail

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

GREG CHUBB RETAIL CEO

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FUM PROPERTIES $6.6bn 175

OCCUPANCY 98.0%

WALE CAP RATE CHC INVESTMENT 7.9yrs 5.88% $598m

35

Charter Hall Group I 2019 Half Year Results

Appendix – Property Funds Management

Charter Hall Direct

“Charter Hall Direct Property is Australia’s leading direct property fund manager, with $4.1 billion of real estate assets under management. We have a strong track record managing unlisted property funds and syndicates since 1995 and our products are consistently highly rated by external research groups.”

STEVEN BENNETT HEAD OF DIRECT PROPERTY

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FUM $4.1bn

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PROPERTIES 69

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OCCUPANCY 99.6%

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WALE 9.2 yrs

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CAP RATE CHC INVESTMENT 5.85% $77m

36

Charter Hall Group I 2019 Half Year Results

Appendix – Property Funds Management

Direct funds net returns since inception

The active Direct Funds have returned 12.4% p.a. outperforming the benchmark[1] by 1.4%

Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%	Appendix – Property Funds Management Direct funds net returns since inception The active Direct Funds have returned 12.4% p.a. outperforming the benchmark1 by 1.4%
18% 17% 18%
13% 12% 9% 11% 11% 12% 11% 11%						13% 12% 9% 13% 11% 11% 11% 12% 11% 10%								12%
DIF2 2013-2019 Australian Industrial	DIF3 2014-2019 Australian Industrial	CDC Trust 2014-2019 Adelaide Industrial	DIF4 2016-2019 Australian Industrial	BW Trust 2014-2019 Australian Retail			DAT 2015-2019 Australian Retail	DAT2 2016-2019 Australian Retail	DCSF 2017-2019 Australian Diversified	PFA (Original) 2012-2019 Australian Office	DOF (Ordinary) 2010-2019 Australian Office	DOF (WSA) 2014-2019 Australian Office
Net Return (% p.a.) Benchmark (% p.a.)

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

37

Charter Hall Group I 2019 Half Year Results

Appendix 6.2 Property Investment

38

M5M7 Logistics Park (GWA), 290 Kurrajong Road, Prestons NSW

Charter Hall Group I 2019 Half Year Results

Appendix – Property Investment

Property Investment portfolio

	Ownership	Charter Hall	Charter Hall	WALE	WACR	WADR	WARR	**PI Yield2 **
	stake%	Investment ($m)	PI Income ($m)	(years)	(%)	(%)	(%)	(%)
Office		637.3	17.4	5.7	5.23%	6.7%	3.8%	5.6%
Charter Hall Prime Office Fund(CPOF)	7.6%	268.7	6.3	6.6	5.16%	6.7%	3.8%	4.9%
Charter Hall Office Trust(CHOT)	15.7%	251.9	7.1	4.4	5.07%	6.6%	3.9%	5.8%
Brisbane Square Wholesale Fund(BSWF)	16.8%	104.7	3.5	8.1	5.73%	6.9%	3.7%	6.9%
Counter Cyclical Trust(CCT)	5.0%	11.7	0.5	4.9	5.77%	6.7%	3.7%	8.9%
Charter Hall PFA Fund (PFA)	0.1%	0.3	0.0	8.6	6.28%	7.2%	3.5%	7.1%
Industrial		259.0	8.5	9.7	5.74%	7.0%	3.0%	5.8%
Core Logistics Partnership (CLP)	9.2%	103.0	4.2	10.0	5.70%	6.9%	3.0%	5.9%
Charter Hall Prime Industrial Fund(CPIF)	5.1%	124.5	3.3	9.1	5.76%	7.1%	3.0%	5.5%
Direct Investment Trust No. 4 (DIF4)	14.1%	31.5	1.0	11.0	5.83%	7.4%	2.8%	6.2%
Retail		518.7	17.0	6.4	5.92%	7.2%	3.9%	6.5%
Charter Hall Retail REIT(ASX:CQR)1	17.7%	310.4	11.3	6.5	6.14%	7.3%	4.1%	7.2%
LongWALE Hardware Partnership (LWHP)	13.5%	93.4	2.3	8.8	5.44%	7.0%	2.9%	5.1%
Charter Hall Prime Retail Fund(CPRF)1	29.4%	59.5	1.7	5.1	5.79%	7.2%	4.5%	5.9%
Retail PartnershipNo. 6(RP6)1	20.0%	37.4	0.9	5.3	5.59%	7.3%	3.7%	5.1%
LongWALE Investment Partnership (LWIP)	0.1%	0.5	0.3	15.6	5.80%	7.2%	2.2%	6.6%
LongWALE Investment Partnership2(LWIP2)	10.0%	10.9	0.3	16.7	5.83%	7.3%	2.2%	6.6%
Retail Partnership No. 2 (RP2)1	5.0%	6.6	0.2	4.6	5.75%	7.3%	4.3%	6.2%
Diversified		290.6	8.4	10.8	6.23%	7.4%	3.0%	6.0%
Charter Hall LongWALE REIT(ASX:CLW)	19.0%	217.6	6.2	12.6	6.19%	7.3%	2.8%	6.3%
DiscretionaryConsumer Staples Fund(DCSF)	51.0%	45.7	1.6	8.1	6.26%	7.6%	3.1%	6.0%
Deep Value Partnership (DVP)	50.5%	27.3	0.6	1.9	6.49%	7.5%	4.0%	4.4%
Social Infrastructure		115.7	1.2	9.5	6.42%	n/a	2.4%	7.4%
Charter Hall Education Trust(ASX:CQE)	15.3%	115.7	1.2	9.5	6.42%	n/a	2.4%	7.4%
Property Investment Total		1,821.3	52.5	7.5	5.73%	7.0%	3.5%	6.0%

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

39

Charter Hall Group I 2019 Half Year Results

Appendix – Property Investment

Charter Hall Retail REIT (ASX:CQR)

Key events during 1H FY19

• Divested two lower growth assets for a total consideration of $76.1 million: Coomera Square, QLD (settled in December 2018) and a freestanding Woolworths asset in Young, NSW (settled in January 2019)

• Executed an unconditional contract to acquire Campbellfield Plaza, Vic for a total consideration of $74 million (settled in January 2019)

• Lake Macquarie Fair redevelopment substantially complete with new Coles opened January 2019

• Refinanced $335 million of debt facilities maturing in FY21 and FY22 with new facilities maturing over FY23 and FY24

• Weighted average debt maturity of 5.3 years with no debt maturing until FY22

	Key metrics1
	Grosspropertyassets	$2.8bn
	Total debt	$1.0bn
	Gearing (balance sheet)	32.2%
	Number of assets	58
	Occupancy (weighted byGLA)	98.1%
	WALE	6.5years
	WACR	6.1%
	WARR2	4.1%
	Charter Hall interest	17.7%
	Charter Hall co-investment	$310.4m

Debt expiry profile (by facility limit)

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$335m
$295m
$252m
$190m
$177m
FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28+
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1. All metrics are on a look-through basis unless otherwise stated

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

Geographic allocation (by GAV)[3]

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SA NT
ACT
4% 1%
4%
VIC
13%
NSW
47%
WA
16%
QLD
15%
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40

Charter Hall Group I 2019 Half Year Results

Appendix – Property Investment

Charter Hall Education Trust (ASX:CQE)

Key events during 1H FY19

• Distribution of 8.0 cents per unit (“cpu”), an increase of 6.0% on pcp

• NTA per unit of $2.87, an increase of 3.2% from $2.78 per unit at 30 June 2018

• Debt facility of $347.0m refinanced in August 2018 including $100m institutional loan with AustralianSuper resulting in weighted average debt maturity of 4.6 years as at 31 December 2018

• Development pipeline of 27 sites with a forecast completion value of $167 million

	Key metrics
	Gross assets Total debt Gearing (balance sheet) Number of assets	$1.1bn $0.3bn 29.9% 413
	Occupancy	99.7%
	WALE	9.5years
	WACR	6.4%
	WARR	2.6%
	Charter Hall interest	15.3%
	Charter Hall co-investment	$115.7m

Debt expiry profile (by facility limit)

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$224m
$124m
FY19 FY20 FY21 FY22 FY23 FY24+
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Property Geographic allocation (by GAV)

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NZ ACT
WA NT 7% 1%
1%
TAS 4% NSW
1% 22%
VIC
29%
QLD
31%
SA
4%
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41

Charter Hall Group I 2019 Half Year Results

Appendix – Property Investment

Charter Hall Office Trust (CHOT)

Key events during 1H FY19

• Valuations – externally valued at $2.9bn at 31 Dec-18 representing a net increase of $94.7m or 3.4% against the Jun-18 book valuations

• Leasing HOA for a new pre-committed development

• Capital transactions – divestment of Capital Hill during the HY19 for $60m, after securing the QLD Government for 10 years over the entire asset

	Key metrics
	Grosspropertyassets Total drawn debt Gearing (balance sheet)	$2.9bn $1.2bn 40.5%
	Number of assets	9
	Occupancy	95.5%
	WALE	4.4years
	WACR	5.1%
	WARR	3.9%
	Charter Hall interest	15.7%
	Charter Hall co-investment	$251.9m

Debt expiry profile (by facility limit)

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$500m
$400m $400m
FY19 FY20 FY21 FY22 FY23 FY24+
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Geographic allocation (by GAV)

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QLD WA
8% 1%
VIC
24%
NSW
67%
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42

Charter Hall Group I 2019 Half Year Results

Appendix – Property Investment

Charter Hall Prime Office Fund (CPOF)

Key events during 1H FY19

• The Fund returned 15.3% in the 12 months to 31 December 2018, outperforming the MSCI Unlisted Wholesale Core Office Index benchmark by +1.7% over the same period. The Fund has consistently outperformed this benchmark over 3, 5 and 10 years

• The Fund’s Gross Asset Value (GAV) grew to $5.3bn during the period driven by revaluation uplift of $176.2m (+3.9%) and the strategic acquisition of:

• 555 Collins Street, Melbourne

• 2 Chifley Square, Sydney (Freehold)

• 50% of 10 Shelly Street, Sydney

• 50% of 12 Shelly Street, Sydney

• The Fund successfully executed ~83,000sqm of leases during the period further enhancing the portfolios resilience

Debt expiry profile (by facility limit)

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$713m
$700m
$400m
FY19 FY20 FY21 FY22 FY23 FY24+
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	Key metrics
	Grosspropertyassets	$5.3bn
	Total debt	$1.5bn
	Gearing (balance sheet)	27.7%
	Number of assets	26
	Occupancy	99.0%
	WALE	6.6years
	WACR	5.2%
	WARR	3.8%
	Charter Hall interest	7.6%
	Charter Hall co-investment	$268.7m

Geographic allocation (by GAV)

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SA
WA
2%
9%
QLD
NSW
15%
47%
VIC
26%
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43

Charter Hall Group I 2019 Half Year Results

Appendix – Property Investment

Charter Hall Long WALE REIT (ASX:CLW)

Key events during 1H FY19

• Operating EPS and DPS of 12.9 cents and NTA per security of $4.01

• Continued to actively manage the portfolio to enhance diversification, improve tenant quality and increase WALE

• Total acquisitions of $491.9 million, including entry into the agri-logistics sector via the $207 million Inghams portfolio acquisition

• Total divestments of $173.7m, including Grace Worldwide and 50% of ATO Adelaide

• WALE of 12.6 years, up from 10.8 years as at 30 June 2018

• Balance sheet gearing of 31.5% within target range of 25.0% to 35.0%

	Key metrics
	Grosspropertyassets	$1.9bn
	Total debt(balance sheet)	$0.5bn
	Gearing (balance sheet)	31.5%
	Number of assets	113
	Occupancy	100.0%
	WALE	12.6years
	WACR	6.2%
	WARR	2.8%
	Charter Hall interest Charter Hall co-investment	19.0% $217.6

• Weighted average debt maturity of 4.2 years

Debt expiry profile (by facility limit)

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$480m
$100m
FY19 FY20 FY21 FY22 FY23 FY24+
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Geographic allocation (by GAV)

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TAS
SA
1%
14%
QLD
25%
NSW
16%
WA
23%
VIC
21%
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44

Charter Hall Group I 2019 Half Year Results

Appendix – Property Investment

Core Logistics Partnership (CLP)

Key events during 1H FY19

• Acquisition of three assets for $84m settled during the half year including the Coles DC at Smeaton Grange NSW and the Coca Cola facility at Kewdale WA both an extension of existing customer relationships in the Fund.

• New leases over 51,500sqm of GLA were executed. These included 36,200sqm of leases in the Fund’s stabilised portfolio and 15,300sqm of new preleases supporting the Fund WALE of 10.0 years.

• Refinanced $350m CBA facility and diversified the lenders with NAB and ING Bank joining foundation lender CBA. Debt maturity increased to 4.5 years, an improvement from 2.9 years as at June 2018

	Key metrics Grosspropertyassets	$1.8bn
	Total debt Gearing (balance sheet) Number of assets	$0.4bn 25.1% 31
	Occupancy	100.0%
	WALE	10.0years
	WACR	5.7%
	WARR Charter Hall interest	3.0% 9.2%
	Charter Hall co-investment	$103.0m

Debt expiry profile (by facility limit)

Geographic allocation (by GAV)

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$350m
$200m
FY19 FY20 FY21 FY22 FY23 FY24+
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----- Start of picture text -----

WA NSW
14%
11%
TAS QLD
5% 9%
SA
5%
VIC
56%
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45

Charter Hall Group I 2019 Half Year Results

Appendix – Property Investment

Charter Hall Prime Industrial Fund (CPIF)

Key events during 1H FY19

• Acquisition of eight assets for $296m settled during the half year with a combined WALE of 15.3 years improving the Fund closing WALE of 9.1 years. The acquisition introduces new tenant customers such as Bombardier Transport Australia and Australian Border Protection and increases foothold with existing customers such as Coca-Cola, Coles and Prixcar.

• Completion of $82m of developments at Chullora NSW and Berrinba QLD

• New leases over 134,900sqm of GLA were executed. These included 76,200sqm of executed leases on the Fund’s stabilised portfolio and 58,700sqm of new pre-leases on the Fund’s existing land holdings

• Issued A$150m USPP with a 9.5 year maturity improving portfolio debt maturity to 5.3 years

Debt expiry profile (by facility limit)

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$998m1
$150m
FY19 FY20 FY21 FY22 FY23 FY24+
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	Key metrics
	Grosspropertyassets	$3.4bn
	Total debt	$0.7bn
	Gearing (balance sheet) Number of assets Occupancy	22.4% 62 97.2%
	WALE	9.1years
	WACR	5.8%
	WARR	3.0%
	Charter Hall interest	5.1%
	Charter Hall co-investment	$124.5m

Geographic allocation (by GAV)

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TAS NT
SA
2% 1%
WA 1%
9%
NSW
35%
QLD
20%
VIC
32%
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1. Syndicated debt facility was refinanced in January 2019 for a 5 year maturity term

46

Charter Hall Group I 2019 Half Year Results

Appendix – Property Funds Management

Portfolio performance review dates

Fund	Portfolio Performance Review Dates
Charter Hall Office Trust (CHOT)	FY20
Charter Hall Prime Office Fund (CPOF)	3 yearly – FY21
Brisbane Square Wholesale Fund (BSWF)	3 yearly – FY19
Counter Cynical Trust (CCT)	FY25
Deep Value Partnership (DVP)	FY26 plus individual asset divestment performance fees
Charter Hall Prime Industrial Fund (CPIF)	3 yearly – FY19
Core Logistics Partnership (CLP)	7 yearly – FY20 plus individual asset divestment performance fees
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
Direct Office Fund (DOF)	5 yearly – FY20
Charter Hall PFA Fund (PFA)	5 yearly – FY23 or individual asset divestment performance fees
Charter Hall Direct BW Trust (BW Trust)	FY19
Charter Hall Direct CDC Trust (CDC)	FY20
Charter Hall Direct Industrial Fund No. 2 (DIF2)	FY20
Charter Hall Direct Industrial Fund No. 3 (DIF3)	FY22
Charter Hall Direct Industrial Fund No. 4 (DIF4)	5 yearly – FY22
Charter Hall Direct Automotive Trust (DAT)	FY22
Charter Hall Direct Automotive Trust No. 2 (DAT2)	FY22
Charter Hall Direct Consumer Staples Fund (DCSF)	5 yearly – FY23

47

Charter Hall Group I 2019 Half Year Results

Additional information

Fund key and glossary

Listed entities

ASX:CHC	Charter Hall Group
ASX:CQR	Charter Hall Retail REIT
ASX:CLW	Charter Hall Long WALE REIT
ASX:CQE	Charter Hall Education Trust
Wholesale funds
BSWF	Brisbane Square Wholesale Fund
CHOT	Charter Hall Office Trust
CCT	Charter Hall Counter Cyclical Trust
CLP	Core Logistics Partnership
CPIF	Charter Hall Prime Industrial Fund
CPOF CPRF	Charter Hall Prime Office Fund Charter Hall Prime Retail Fund
LWHP	Long WALE Hardware Partnership
LWIP, LWIP 2	Long WALE Investment Partnership series
RP1, RP2, RP6	Retail Partnership series
DVP	Deep Value Partnership

Direct funds

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

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Charter Hall Group I 2019 Half Year Results

Additional information

Contact information

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David Harrison Managing Director & Group CEO Charter Hall Group

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

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Russell Proutt Chief Financial Officer Charter Hall Group

T: +61 2 8651 9493

E: russell.proutt@charterhall.com.au

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Sean McMahon Chief Investment Officer Charter Hall Group

T: +61 2 8651 9147

E: sean.mcmahon@charterhall.com.au

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Philip Cheetham Head of Listed Investor Relations Charter Hall Group

T: +61 2 8651 9214

E: philip.cheetham@charterhall.com.au

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Charter Hall Group I 2019 Half Year Results

Additional information

Disclaimer

IMPORTANT NOTICE & DISCLAIMER

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

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

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

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

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

All information contained herein is current as at 31 December 2018 unless otherwise stated. All references to dollars ($) are to Australian dollars, unless otherwise stated.

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

Charter Hall Group I 2019 Half Year Results

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Melbourne

Level 14, 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

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www.charterhall.com.au