CHARTER HALL GROUP — Interim / Quarterly Report 2020

Feb 18, 2020

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2 Chifley Square, Sydney
Charter Hall Group 2020 Half Year Results
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Charter Hall Group

2020 Half Year Results

19 February 2020

• 1 Highlights and Strategy

• 2 Property Funds Management

• 3 Property Investment

Agenda

• 4 Financial Result

• 5 Outlook and Guidance

• 6 Additional Information

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David Harrison Managing Director & Group CEO

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Sean McMahon Chief Investment Officer

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Russell Proutt Chief Financial Officer

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Charter HalCharter Ha l Group 2020 Half Year Results l Group 2020 Half Year Results

Highlights and Strategy

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Arnott's, Distribution Facility, Huntingwood, Sydney 3

Charter Hall Group 2020 Half Year Results

Highlights and Strategy

Group highlights[1]

Group investment capacity remains at $4.1bn

Group Returns

Property Investments

Operating earnings Total Property Investment $ 226m (PI) return[4] Statutory profit[2] 12.5[%] $ 313m OEPS Property Investment portfolio $ 48.5cps 2.1bn (13.5% growth) Total platform return[3] Property Investment (PI) yield 23.5[%] 6.1[%]

1. Figures and statistics on this slide and throughout this presentation are for the 6 months to 31 December 2019 unless otherwise stated

2. Attributable to stapled securityholders

3. Total Platform Return is calculated as growth in net tangible assets (NTA) per security plus distributions per security divided by the opening NTA per security for the 12 months to 31 December 2019

Investment Capacity

Funds Management

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FUM growth (6 months)
$
8.5bn
to
$
38.9bn (27.9% growth)
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Group investment capacity Maintained[$] 4.1bn

Balance sheet

Gross transactions $ 6.3bn

NTA growth (6 months) 12.1[%]

Property Funds Management (PFM) yield[5] 11.6[%]

Debt Maturity and rating 6.6yrs / Baa1

1. Total Property Investment Return is calculated as distributions received from funds plus growth in investment value divided by the opening investment value of the PI portfolio for the 12 months to 31 December 2019. This excludes investments in new vehicles held for less than a year and investments in Direct funds

2. Property Funds Management (PFM) yield is calculated as PFM operating earnings post tax per security (includes 50% allocation of net interest) divided by the opening NTA per security for the 12 months to 31 December 2019

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Charter Hall Group 2020 Half Year Results

Highlights and Strategy

Our strategy

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

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Access

Accessing equity from listed, wholesale and retail investors

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Deploy

Creating value through attractive investment opportunities

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Manage

Funds management, asset management, leasing and development services

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Invest

Investing alongside our capital partners

6 months Gross equity deployed $ 3.0bnbn

Gross transactions

Gross equity deployed Gross transactions FUM $ $ $ 3.0bnbn 6.3bn 38.9bn Divestments Acquisitions FUM growth $ $ $ 0.6bn 5.8bn 8.5bn 3 years Gross equity deployed Gross transactions FUM growth $ $ $ 9.1bn 16.2bn 19.9bn Divestments Acquisitions $ $ 2.9bn 13.2bn 5 years Gross equity deployed Gross transactions FUM growth $ 12.6bn $ $ 24.3bn 26.2bn Divestments Acquisitions $ $ 5.5bn 18.8bn

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Increase in Pl to $2.1bn

$ 248m 12.5[%]

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13.4%

Total Property Investment return

Increase in Pl $ 789m 60.5% Total Property Investment return 11.9[%]

Increase in Pl $ 163.1%

$ 1.3bn

Total Property Investment return 14.5[%]

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Charter Hall Group 2020 Half Year Results

Highlights and Strategy

Earnings growth

Operating earnings per security growth

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Pre-tax OEPS
Post-tax OEPS
62.4cps
56.3cps
43.5cps
40.5cps 47.4cps 48.5cps
30.4cps 37.7cps
35.9cps
27.5cps
25.3cps
FY14 FY15 FY16 FY17 FY18 FY19 1H FY20
Post-tax growth 8.5% 10.5% 18.1% 5.0% 25.5%
Pre-tax growth 8.5% 10.5% 33.2% 7.4% 29.4%
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Operating earnings per security growth (excluding CHOT Performance fee)

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OEPS excl CHOT performance fee post-tax

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39.4cps
33.6cps 33.8cps 33.1cps
30.4cps
27.5cps
25.3cps
FY14 FY15 FY16 FY17 FY18 FY19 1H FY20
Post-tax growth 8.5% 10.5% 10.4% 0.7% 16.5%
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Charter Hall Group 2020 Half Year Results

Property Funds Management

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242 Exhibition Street, Melbourne

Charter Hall Group 2020 Half Year Results

Property Funds Management

Group funds management portfolio

Consistent growth in all equity segments

	Portfolio value ($bn)	Lettable area (m sqm)	No. of Properties	No. of Tenancies	Net income ($m)	WALE (years)	Occupancy (%)	WACR (%)
31 December 2019 38.9 7.7 1,116 4,145 2,073 8.9 97.7 5.32
30 June 2019 30.4 6.6 844 3,419 1,713 8.2 97.9 5.58

Diversification by equity source

Asset type diversification

WALE by sector

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Social Infrastructure
$1.4bn
Retail Equity$5.7bn SC Retail 4%
15% $4.0bn
10% Office
$18.0bn
46%
Wholesale Industrial &
Listed Fund Equity Logistics
$8.1bn $25.1bn $7.9bn
21% $38.9bn 64% 20% $38.9bn
Diversified & Long WALE
$7.6bn
20%
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13.1
11.2
10.8
6.7
6.4
SC Retail Office Industrial & Social Diversified &
Logistics Infrastructure Long WALE
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Charter Hall Group 2020 Half Year Results

Property Funds Management

Funds under management growth FUM growth of 27.9% in 1H FY20, to $38.9bn

Funds under management movement ($bn)

Funds under management by equity source ($bn)

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Wholesale Listed Retail
$38.9bn
$5.7bn
$30.4bn
$8.1bn
$0.9bn $38.9bn
$1.2bn $5.0bn
$6.9bn ($0.6bn)
$23.2bn
$6.3bn $25.1bn
$19.8bn $2.9bn
$17.5bn $2.8bn $4.4bn
$30.4bn $19.2bn
$13.6bn $2.5bn $4.1bn
$15.9bn
$1.9bn $2.5bn
$2.2bn $12.4bn $12.9bn
$9.5bn
Jun-19 Acquisitions Divestments Net Capex 1H FY20 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 1H FY20
revaluations
28.3% 13.7% 17.0% 31.1% 27.9%
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Charter Hall Group 2020 Half Year Results

Property Funds Management

1H FY20 transactional activity

• Strong transactional activity in Office, Industrial & Logistics, Diversified & Long WALE

($m)	Office	Industrial & Logistics	Diversified & Long WALE	Shopping Centre Retail	Social Infrastructure	Total
Acquisitions	2,455	727	2,498	62	43	5,785
Divestments	(229)	(96)	(58)	(169)	(12)	(563)
Net transactions	2,226	632	2,440	(107)	31	5,222
Gross transactions	2,684	823	2,555	230	56	6,348

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BP Minchinbury, Sydney

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Arnotts, Distribution Facility, Huntingwood, Sydney

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2 Chifley Square, Sydney

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Telstra, Exhibition Exchange, Melbourne

Note: Statistics on this page may not add due to rounding

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Charter Hall Group 2020 Half Year Results

Property Funds Management

Development activity

Continues to drive asset creation and attract capital

• Development completions of $0.6bn over the last 12 months

• Industrial development pipeline increasing despite completions

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

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

Development activity (completion value $m)	Completions (12 months)	Committed projects	Uncommitted projects2	Total pipeline3
Office	251	1,533	2,720	4,253
Industrial & Logistics	249	1,016	1,212	2,228
Retail1	61	135	32	167
Social Infrastructure	8	114	41	155
Total / weighted average 568 2,798 4,005 6,803

1. Reflects development spend only and excludes existing centre value

2. Includes potential end value of uncommitted development projects 3. $2.9bn included in FUM at 31 December 2019

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Charter Hall Group 2020 Half Year Results

Property Funds Management

Equity flows

37,000 investor customers across Wholesale, Listed & Direct

Diversified equity sources with $3.0bn gross equity deployed across 12 funds in the 6 months to 31 December 2019:

• Wholesale equity raisings of $1.4bn including raisings in CPOF, DVP, CHAIT and newly established Telstra Exchanges Trust

• Strong Listed equity flows with three raisings in CLW generating $863m of equity flows

• Continued strength in Direct funds with $674m raised in the half year

($m)	FY17	FY18	FY19	1H FY20
Wholesale pooled funds	776	649	1,802	453
Wholesale partnerships	217	322	219	977
Listed funds	988	77	692	875
Direct funds	355	653	691	674
Gross equity deployed	2,336	1,701	3,404	2,978
Net equity deployed	1,689	1,487	3,287	2,852

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

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Charter Hall Group 2020 Half Year Results

Property Funds Management

Leasing activity

Deals completed over the last 12 months

	Office	Industrial & Logistics	Shopping Centre Retail	Social Infrastructure
Existing assets leased (lettable area sqm) Major leases	140,872	629,151	109,137	27,770
Developments leased (lettable area sqm) Major leases	47,784	254,776	8,432	2,517
Lettable area (sqm)	188,656	883,927	117,569	30,287
Value1 $2.0bn $1.8bn $0.9bn $0.2bn
WALE (years) 9.2 8.9 5.9 10.7

1. Lease NLA/property NLA x property value. Shopping Centre Retail value is Lease income/property income x property value

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Charter Hall Group 2020 Half Year Results

Property Investment

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Bunnings Claremont, Perth

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Charter Hall Group 2020 Half Year Results

Property Investment

Property Investment portfolio

82% east coast weighting

	Portfolio value ($m)	No. of Properties	WALE (years)	Occupancy (%)	WARR (%)	WACR (%)	WADR (%)
31 December 2019 2,092 1,044 8.9 97.6 3.5 5.34 6.7
30 June 2019 1,844 793 7.6 97.7 3.5 5.64 6.9

Diversification by property investment

Diversification by sector

Geographic allocation

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Social NZ
DCSF $46mOther $99mCQE $298mCHOT Infrastructure5% TAS 12%WA 0.5%
$36m 1%
ACT
CLW
$262m BSWF Diversified & 1%
$110m Long WALE SA NSW
LWIPs DVP 30% Office 3% 43%
$12m $38m 39%
$73mCHET $2,092m $2,092m $2,092m
VIC
LWHP CPOF
21%
$110m $319m
BPP
$88m
Other
CLP
$41m
$87m
CPRF Industrial &
CPIF $57m Logistics QLD
$132m CQR 10% SC Retail 18%
$286m 16%
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Charter Hall Group 2020 Half Year Results

Property Investment

Property Investment portfolio movement

• During the 6 months to 31 December 2019 the Property Investment portfolio increased by 13.4% (+$248m) to $2,092m predominantly driven by $151m of net investments and $97m of revaluations

• PI yield of 6.1% remains attractive

Property Investment movement

Property Investment portfolio yield

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$97m $2,092m
$151m
$1,844m
Jun-19 Net Investments Change in valuation Dec-19
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10.0%
$2,092m
$1,844m 8.0%
$1,706m
$1,527m
6.0%
$1,098m
$944m
4.0%
2.0%
0.0%
Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Dec 19
PI Portfolio ($m) PI Yield (%)
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Charter Hall Group 2020 Half Year Results

Property Investment

Diversified PI earnings Top 10 asset exposures represent only 6.0% of earnings

• 78% repeat customers across 2,236 leases

• Tenant retention rate of 81% for the 6 months to 31 December 2019

Top 10 tenants by net income

Property Investment earnings (by sector)

Top 10 asset exposures[1]

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Social
Infrastructure
Government 9.7% # 1 1.2%
5%
Telstra 8.0% # 2 1.1%
Diversified &
# 3 0.9%
BP 7.8% Long WALE Office
26% 35%
# 4 0.5%
Wesfarmers 7.7%
# 5 0.5%
Woolworths 7.7%
# 6 0.4%
Coles Group 4.6%
# 7 0.4%
Commonwealth Bank 3.3%
Industrial & # 8 0.4%
Goodstart Early Learning 1.9% Logistics
11% # 9 0.4%
SC Retail
Amazon 1.6% 23% # 10 0.3%
Macquarie Group 1.5%
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1. Asset exposure measured as net income of property, weighted for CHPT ownership stake, divided by post-tax OEPS Charter Hall Group 2020 Half Year Results

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Property Investment

ESG

Environment

Climate resilience

100% net zero target

In Scope 1 and Scope 2 emissions by 2030 from base buildings in Charter Hall operational control and work with our tenant customers and contractors to reduce our Scope 3 emissions

Climate risk exposure

100% of childcare centres assessed for climate risk exposure

Climate change adaptation

Planning completed for Office assets and underway for all Retail centres and Industrial & Logistics assets

Solar PV installed

6.9MW solar PV installed across the Office, Industrial & Logistics and Retail portfolios, generating 4,716MWh of renewable energy. This represents an increase of 1.7MW in the first six months of FY20, with the renewable energy generation for the period equivalent to powering 314 homes

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Social

Engagement and inclusion

Donations of $500,000 for bushfire emergency

Supporting Australian Red Cross and Foundation for Rural and Regional Renewal (FRRR) to deliver emergency relief and recovery support in bushfire affected communities

Supporting drought affected communities

Donations from our retail centres and customers resulted in the distribution of 800 large bales of hay, equating to 27 semi-trailer loads and 50 truckloads of water, approximately 180,000 litres across 20 farming and rural communities in which we operate

Pledge 1%

Charter Hall is part of the international Philanthropy movement Pledge 1%

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Governance

Responsible business

TCFD alignment underway

Commencing with a review of climate governance and strategy, climate risk and opportunities and climate metrics

Working to protect human rights

Suppliers in the Charter Hall supply chain invited to participate in pilot of Property Council pre-qualification supplier platform to assess and address human rights issues and modern slavery risks across shared operations and supply chains

UN Global Compact

Statement published on our progress as a signatory to the United Nations Global Compact in the September 2019 Sustainability Report

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Charter Hall Group 2020 Half Year Results

Financial Result

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130 Lonsdale Street, Melbourne

Charter Hall Group 2020 Half Year Results

Financial Result

Earnings summary

• EBITDA of $299.8m, a 123.4% increase over 1H FY19

• Continued expansion of property funds management platform and strong fund performance underpins segment profitability

• Interest expense change over 1H FY19 mainly attributable to a full half of USPP issuance (funded in August 18)

• Operating earnings and OEPS growth of 110.0% to $225.8m and 48.5cps

• DPS growth of 6.0% on 1H FY19 to 17.5cps

• Distribution payout ratio of 36% in the half

• 3.0cps of franking credits distributed

($m)	1H FY19	1H FY20	Change %
PI EBITDA	52.6	56.8	8.0%
DI EBITDA	1.4	14.8	928.3%
PFM EBITDA1	80.2	228.2	184.7%
EBITDA	134.2	299.8	123.4%
Depreciation	(2.4)	(3.8)	(60.5%)
Interest income/expense	(2.9)	(5.5)	(89.7%)
Operating earnings pre-tax	128.9	290.5	125.4%
Tax	(21.4)	(64.7)	(202.2%)
Operating earnings post-tax	107.5	225.8	110.0%
Non operating items
Change in Property Investment valuation2	48.7	97.4	100.0%
Other non-operating items2	(22.7)	(10.0)	(55.9%)
Statutory profit after tax	133.5	313.2	134.6%
OEPS pre-tax (cps)	27.7	62.4	125.5%
OEPS post tax (cps)	23.1	48.5	110.0%
OEPS post tax excluding CHOT performance fee (cps)	20.0	33.1	65.8%
DPS (cps)	16.5	17.5	6.0%
Distribution payout ratio	72%	36%	(50%)

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

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

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Charter Hall Group 2020 Half Year Results

Financial Result

Property funds management

• PFM revenue up 127.6% to $287.3m

• Investment management revenue up 146.7% to $258.6m:

• Continued momentum in FUM driving funds management fee growth of 37.5%

• Transaction fees earned from active acquisition and divestment program

  • 1

• $98m of the CHOT performance fee has been accrued in 1H FY20

• Property services revenue up 34.1% to $28.7m:

• All property services revenue lines increased over 1H FY19

• Successful leasing activity supporting high occupancy

• Development fees driven by continued development activity

• Total PFM expenses includes a full half of costs relating to the Folkestone business, whereas in 1H FY19 these expenses were only from 7 November 2018

	($m)	1H FY19	1H FY20	Change %
	Fund management fees	51.8	71.2	37.5%
	Transaction and performance fees	53.0	187.4	253.2%
	Investment management revenue	104.8	258.6	146.7%
	Property management fees	6.6	8.3	26.0%
	Development fees	6.9	9.0	30.5%
	Leasing fees	6.0	7.5	25.3%
	Facilities and project management fees	1.9	3.9	102.7%
	Property services revenue	21.4	28.7	34.1%
	PFM revenue	126.2	287.3	127.6%
	PFM expenses	(32.9)	(43.3)	(29.5%)
	Corporate expenses	(12.6)	(15.8)	(25.3%)
	Total PFM expenses	(45.6)	(59.1)	(28.3%)
	PFM EBITDA	80.7	228.2	184.6%
	PFM EBITDA Margin	63.9%	79.4%

1. As at 31 December 2019, CHOT accrued a total performance fee liability of $148m (unaudited)

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Charter Hall Group 2020 Half Year Results

Financial Result

Operating cashflow

• 1H FY20 distribution covered 120% by operating cashflow

• The cashflow difference between 1H FY20 operating earnings and operating cashflow is primarily driven by timing of earnings recognition and receipt of cash

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$226m ($5m) $8m ($177m)
$46m $98m
$82m
Operating Earnings Earnings vs Non-cash items Change in working Tax expense vs cash Operating Cashflow Distribution
distributions received capital1 tax paid
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1. Includes increase in the CHOT performance fee accrual of $98m (with the full fee to be cash paid in April 2020)

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Charter Hall Group 2020 Half Year Results

Financial Result

Balance sheet and return metrics

• Utilised investment capacity from June 2019 to deploy into Property Investments, which along with revaluations, has grown the Property Investment Portfolio to $2.1bn

• NTA per security growth of 12.1% since June 2019 to $4.37, driven by revaluations and retained earnings

• Strong return metrics on capital employed in the business

($m)	30-Jun-19	31-Dec-19
Cash	114	57
Property investment	1,844	2,092
Development investment	59	69
Other assets1,2	272	446
Intangibles	126	123
Total assets	2,415	2,789
Borrowings2	268	357
Other liabilities	187	240
Total liabilities	455	597
Total equity	1,960	2,191
NTA per stapled security3	$3.90	$4.37
Balance sheet gearing	5.4%	9.1%
Look through gearing	30.8%	35.5%
Return metrics	30-Jun-19	31-Dec-19
Return on equity (pre-tax)4	14.8%	23.8%
Return on equity (post-tax)4	12.4%	19.0%
Total property investment return5	9.1%	12.5%
Total platform return6	11.1%	23.5%

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

1. Includes DCSF assets, distributions and fees receivable , including the CHOT performance fee accrual of $148m

2. Net of swap mark-to-market of $41m relating to the USPP notes (representing USPP repayment value of $231.5m)

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

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

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

6. Total Platform Return is calculated as growth in net tangible assets (NTA) per security plus distributions per security divided by the opening NTA per security

Charter Hall Group 2020 Half Year Results

23

Financial Result

Debt and capital management

• Group continued to be managed in line with strategy

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

• $6.4bn of new and refinanced debt facilities agreed in 1H20 with no material maturities in FY20 or FY21

• Weighted average gearing across the funds is 30%

Funds platform debt metrics1	30-Jun-19	31-Dec-19
Totalplatform facilitylimits($m)	12,872	15,817
Totalplatform undrawn debt($m)	3,547	3,808
Totalplatform cash($m)	596	312
Look through weighted average debt maturity (yrs.)2	4.3	4.5
Look through weighted average cost of debt3	3.6%	3.0%
Look through interest rate hedging (%) 62% 50%

Fund debt facilities – by sector

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$8.0bn
$7.0bn
$6.0bn
$5.0bn
$4.0bn
$3.0bn
$2.0bn
$1.0bn
-
Office SC Retail Industrial & Diversified & Long Social
Logistics WALE Infrastructure
Drawn debt Undrawn debt
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1. Total platform includes Corporate debt facility limits of $452m, drawn to $252m net of cash

2. Duration is based on facility limits

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

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Charter Hall Group 2020 Half Year Results

Outlook & Guidance

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Dandenong Distribution Centre, Dandenong South, Melbourne

Charter Hall Group 2020 Half Year Results

Outlook & Guidance

FY20 earnings guidance

Our guidance is as follows:

• The Group’s previous FY20 guidance was for post-tax operating earnings per security (OEPS) growth of approximately 30% over FY19

• Based on no material change in current market conditions and reflecting recent valuations, updated performance fee expectations and transactional activity, guidance is upgraded to approximately 40% OEPS growth in post-tax operating earnings per security over FY19

• FY20 guidance includes $98m for the CHOT performance fee, which in addition to the $50m recognised in FY19, will generate a $148m cash payment in April 2020

• When the impact of the CHOT performance fee is removed from both FY19 and FY20 earnings, guidance implies post-tax operating earnings per security growth of approximately 30% over FY19

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

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201 Elizabeth Street, Sydney 26

Charter Hall Group 2020 Half Year Results

Additional Information

• Management Team

• Property Funds Management

• Property Investment

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9 Castlereagh Street, Sydney

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Charter Hall Group 2020 Half Year Results

Appendix 6.1 Management Team

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Charter Hall Group 2020 Half Year Results Charter Hall Group 2020 Half Year Results

Appendix – Management Team

Deep Management Bench Charter Hall Executive Leadership Group

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David Harrison

Managing Director & Group CEO

32 years industry experience

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Natalie Devlin

Sean McMahon

Russell Proutt

Chief Investment

Chief Financial Officer

Chief Experience Officer

Officer

31 years industry 30 years industry 23 years industry experience experience experience

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Adrian Taylor

Richard Stacker

Office CEO

Industrial & Logistics CEO

27 years industry 26 years industry experience experience

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Sheridan Ware

Greg Chubb

Steven Bennett

Retail CEO

Direct CEO

Chief Information

& Technology Officer

31 years industry 19 years industry 21 years industry experience experience experience

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Charter Hall Group 2020 Half Year Results

Appendix 6.2 Property Funds Management

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Charter Hall Group 2020 Half Year Results

Appendix – Property Funds Management

Charter Hall group property overview[1]

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NT
3
3 QLD
WA 388
186 388
SA
186
73
NSW/ACT
73
458
458
VIC
VIC 306
306 properties valued at $8.7bn
Office 15
TAS
Diversified and Long WALE 78
Shopping Centre Retail 5 27
----- End of picture text -----

NT

NT
3properties valued at $0.1bn
Office	-
Diversified and LongWALE	1
ShoppingCentre Retail	-
Industrial & Logistics Social Infrastructure WA	- 2
186properties valued at $3.6bn
Office Diversified and LongWALE ShoppingCentre Retail Industrial & Logistics	7 75 10 12
Social Infrastructure	19

SA

SA		VIC
73properties valued at $1.4bn		306properties valued at $8.7bn
Office	4	Office	15
Diversified and LongWALE	16	Diversified and LongWALE	78
ShoppingCentre Retail	2	ShoppingCentre Retail	5
Industrial & Logistics	6	Industrial & Logistics	45
Social Infrastructure	32	Social Infrastructure	105

QLD

QLD
388properties valued at $6.7bn
Office	16
Diversified and LongWALE	118
ShoppingCentre Retail	10
Industrial & Logistics	21
Social Infrastructure	132
NSW/ACT
458properties valued at $17.8bn
Office	25
Diversified and LongWALE	144
ShoppingCentre Retail	30
Industrial & Logistics	40
Social Infrastructure	93

TAS

TAS
27properties valued at $0.4bn
Office	2
Diversified and LongWALE	13
ShoppingCentre Retail	-
Industrial & Logistics	1
Social Infrastructure	2

1. Excludes 47 New Zealand assets; predominantly childcare valued at $0.1bn

31

Charter Hall Group 2020 Half Year Results

Appendix – Property Funds Management

Charter Hall managed funds

Office

$17.9bn

CPOF CHOT BSWF[1] $ $ $ 6.9bn 3.4bn 0.6bn CCT Mandates DVP $ $ $ 0.5bn 0.6bn 0.5bn Chifley 201 Elzb.St CHAIT $ $ $ 1.2bn 0.4bn 0.4bn

DOF PFA $ $ 2.2bn 1.2bn

Industrial & Logistics

Shopping Centre Retail

Diversified & Long WALE, Social Infrastructure $8.9bn

$7.8bn

$4.3bn

CPIF CLP CPRF RPs[2] LWHP LWIPs[3] CHET $ $ $ $ $ $ $ 4.6bn 1.9bn 0.4bn 0.6bn 1.5bn 0.6bn 0.4bn Mandates CIB CPOF $ $ $ 0.5bn 0.1bn 6.0bn

==> picture [201 x 162] intentionally omitted <==

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

MAXIM DCSF DATs
$ $ $
0.2bn 0.2bn 0.2bn
Other BW Trust
$ $
0.2bn 0.1bn
CLW CQE
$ $
3.6bn 1.3bn
----- End of picture text -----

DIFs/CDC $ 1.3bn

CQR $ 3.2bn

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. RPs include RP1, RP2 and RP6

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

32

Charter Hall Group 2020 Half Year Results

Appendix – Property Funds Management

Wholesale Pooled and Partnerships

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Gearing 31.9%

FUM $ 25.1bn

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Occupancy WALE 97[%] 8.1 yrs Cap rate CHC investment $ 5.1[%] 1,383m

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Drystone Industrial Estate, Truganina, Melbourne 33

Charter Hall Group 2020 Half Year Results

Appendix - Property Funds Management

Major wholesale property investment portfolio returns

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

==> picture [26 x 7] intentionally omitted <==

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

27.5%
----- End of picture text -----

==> picture [783 x 286] intentionally omitted <==

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

15.9%
14.4%
13.8% 13.8% 13.8% 13.9% 13.7%
11.5%
10.9% 10.9%
10.2%
8.4%
6.8% 6.8% 6.5%
4.9% 4.9%
CHOT CPOF BSWF CPIF CLP LWHP LWIP LWIP2 CPRF
2014 to 2019 2014 to 2019 2014 to 2019 2014 to 2019 2014 to 2019 2014 to 2019 2014 to 2019 2016 to 2019 2016 to 2019
Net Return (% p.a.) MSCI/IPD Benchmark
----- End of picture text -----

34

Charter Hall Group 2020 Half Year Results

Appendix – Property Funds Management

Listed

==> picture [364 x 284] intentionally omitted <==

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

FUM Gearing
$
8.1bn 26.9%
Occupancy WALE
99 [%] 10.5
yrs
Cap rate CHC investment
$
5.8 [%] 647m
----- End of picture text -----

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BP, Forestville, Sydney 35

Charter Hall Group 2020 Half Year Results

Appendix – Property Funds Management

Charter Hall Direct

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FUM Gearing $ 5.7bn 25.0% Occupancy WALE 99[%] 9.3 yrs Cap rate CHC investment $ 5.5[%] 62m

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10 Shelley Street, Sydney 36

Charter Hall Group 2020 Half Year Results

Appendix – Property Funds Management

Direct funds net return since inception

The active Direct Funds have returned 12.7.% p.a out performing the benchmark[1 ] by 2.9%

Direct funds net return since inception The active Direct Funds have returned 12.7.% p.a out performing the benchmark1by 2.9%	Direct funds net return since inception The active Direct Funds have returned 12.7.% p.a out performing the benchmark1by 2.9%	Direct funds net return since inception The active Direct Funds have returned 12.7.% p.a out performing the benchmark1by 2.9%	Direct funds net return since inception The active Direct Funds have returned 12.7.% p.a out performing the benchmark1by 2.9%	Direct funds net return since inception The active Direct Funds have returned 12.7.% p.a out performing the benchmark1by 2.9%	Direct funds net return since inception The active Direct Funds have returned 12.7.% p.a out performing the benchmark1by 2.9%	Direct funds net return since inception The active Direct Funds have returned 12.7.% p.a out performing the benchmark1by 2.9%	Direct funds net return since inception The active Direct Funds have returned 12.7.% p.a out performing the benchmark1by 2.9%	Direct funds net return since inception The active Direct Funds have returned 12.7.% p.a out performing the benchmark1by 2.9%	Direct funds net return since inception The active Direct Funds have returned 12.7.% p.a out performing the benchmark1by 2.9%	Direct funds net return since inception The active Direct Funds have returned 12.7.% p.a out performing the benchmark1by 2.9%	Direct funds net return since inception The active Direct Funds have returned 12.7.% p.a out performing the benchmark1by 2.9%	Direct funds net return since inception The active Direct Funds have returned 12.7.% p.a out performing the benchmark1by 2.9%
19% 2
14% 12% 12% 11% 10% 11% 10% 9%						12% 11% 11% 13% 12% 16% 10% 10% 10% 9% 10% 9% 11%
DIF2 2013-2019 Australian Industrial & Logistics	DIF3 2014-2019 Australian Industrial & Logistics	CDC Trust 2014-2019 Adelaide Industrial & Logistics	DIF4 2016-2019 Australian Industrial & Logistics	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	PFA (Ordinary) 2017-2019 Australian Office	DOF (WSA) 2014-2019 Australian Office
Net Return (% p.a.) Benchmark (% p.a.)

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

2. The Professional Planner | The Zenith Fund Awards were issued 11 October 2019 by Zenith Investment Partners (ABN 27 130 132 672, AFSL 226872) and are determined using proprietary methodologies. The Fund Awards are solely statements of opinion and do not represent recommendations to purchase, hold or sell any securities or make any other investment decisions. Fund Awards are current for 12 months from the date awarded and are subject to change at any time.

37

Charter Hall Group 2020 Half Year Results

Appendix 6.3 Property Investment

38

Charter Hall Group 2020 Half Year Results

Appendix – Property Investment

CHPT Property Investment portfolio

		Ownership stake	Charter Hall	Charter Hall PI	WALE	WACR	WADR	WARR	**PI Yield2 **
		(%)	Investment	Income	(years)	(%)	(%)	(%)	(%)
			($m)	($m)
	Office		805.6	19.8	6.7	5.0	6.5	3.8	5.5
	Charter Hall Prime Office Fund(CPOF)	6.9	318.9	7.1	7.0	5.0	6.5	3.8	4.7
	Charter Hall Office Trust(CHOT)	15.7	298.0	7.9	6.7	4.9	6.4	3.8	6.0
	Brisbane Square Wholesale Fund(BSWF)	16.8	110.2	3.5	7.3	5.5	6.7	3.8	6.8
	Charter Hall DVP Fund(DVP)	13.5	37.7	0.5	3.1	4.9	6.6	3.9	4.1
	Charter Hall Australian Investment Trust(CHAIT)	10.0	18.4	0.4	4.0	6.5	7.1	3.7	5.9
	Counter Cyclical Trust(CCT)	5.0	12.0	0.3	6.7	5.8	6.6	3.6	5.3
	201 Elizabeth Street	5.9	10.4	0.1	1.9	5.0	6.8	4.0	3.5
	Industrial & Logistics		219.1	6.4	10.5	5.3	6.6	3.1	5.5
	Charter Hall Prime Industrial Fund(CPIF)	4.0	131.8	3.3	10.7	5.2	6.7	3.1	5.2
	Core Logistics Partnership (CLP)	7.2	87.3	3.1	10.4	5.3	6.6	3.0	5.9
	Shopping Centre Retail		342.7	12.9	6.3	6.1	7.1	4.2	7.4
	Charter Hall Retail REIT(ASX:CQR) 3	15.3	285.9	10.9	6.9	6.1	7.1	4.21	7.6
	Charter Hall Prime Retail Fund(CPRF)	29.4	56.8	2.0	4.6	6.0	7.2	4.21	7.1
	Diversified & Long WALE		625.8	14.9	13.2	5.2	5.6	2.8	6.3
	Charter Hall LongWALE REIT(ASX:CLW) 3	12.4	262.3	7.3	14.5	5.5	6.8	2.7	6.6
	LongWALE Hardware Partnership (LWHP)	13.5	110.1	2.6	8.1	5.2	6.7	2.8	5.3
	Charter Hall BP Partnership (BPP)	20.0	87.6	0.2	19.9	5.5	n/a	2.2	8.8
	Charter Hall Exchanges Trust(CHET)	21.8	73.1	1.4	20.6	4.4	6.1	2.7	6.3
	DiscretionaryConsumer Staples Fund(DCSF)	36.6	35.5	1.4	7.2	5.9	7.1	3.4	9.2
	LongWALE Investment Partnerships(LWIPs)	10.1	11.5	0.4	15.5	5.8	n/a	2.2	6.7
	Other investments		45.7	1.6	n/a	n/a	n/a	n/a	n/a
	Social Infrastructure		98.7	2.8	11.7	6.1	n/a	2.4	5.8
	Charter Hall Social Infrastructure REIT(ASX:CQE)3	10.6	98.7	2.8	11.7	6.1	n/a	2.4	5.8
	Property Investment Total4	13.4	2,091.8	56.8	8.9	5.3	6.7	3.5	6.1

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. Held at accounting value not market value

3. Weighted average ownership stake, excluding other investments

39

Charter Hall Group 2020 Half Year Results

Appendix – Property Investment

Charter Hall Prime Office Fund (CPOF)

Key events during H1 FY20

• The Fund’s Gross Asset Value (GAV) grew to $6.9bn in the 6 month period to 31 December 2019 driven by revaluation gains and the strategic acquisition of 2 Chifley Square, Sydney (25%) and 242 Exhibition Street, Melbourne (49.9%)

• The Fund’s Weighted Average Debt Maturity increased to 5.2 years (+1 year) in the 6 month period to 31 December 2019 driven by the execution of new debt facilities and refinancing of existing debt including:

• New 7-year $500m Asian Term Loan Facility

• New 6-year $300m Asian Term Loan Facility

• Refinancing $500m of Australian Bank Facilities

• The Fund raised $414m of new equity in the 6 month period to 31 December 2019, to pay down debt, increase funding for CPOF’s existing project pipeline and to provide future acquisition capacity

Debt expiry profile (by facility limit)[1]

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

$1,713m
$300m
$255m
FY20 FY21 FY22 FY23 FY24 FY25+
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1. Reflects CPOF balance sheet debt facilities

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Key metrics
Grosspropertyassets	$6.9bn
Gearing (balance sheet)	23.6%
Number of assets	27
Occupancy	97.7%
WALE	7.0years
WACR 5.0%
WARR 3.8%
Charter Hall Interest 6.9%
Charter Hall co-investment $318.9m

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Geographic allocation (by GAV)
----- End of picture text -----

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

SA
WA 4%
7%
QLD
11%
NSW
47%
VIC
31%
----- End of picture text -----

40

Charter Hall Group 2020 Half Year Results

Appendix – Property Investment

Charter Hall Office Trust (CHOT)

Key events during H1 FY20

• Leasing – ~58,000sqm of leasing signed during the HY20

• Development - AFL with the Australian Federal Police (AFP) for the development of a new 22,750sqm office tower at 140 Lonsdale Street

• Treasury – New $1.7bn bilateral facility over four domestic and two international banks achieving favourable margins against the previous facility. Gearing target increased to 55%

• Terms agreed to extend Trust life by seven years

Debt expiry profile (by facility limit)

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

$566m $567m $567m
CY20 CY21 CY22 CY23 CY24 CY25
----- End of picture text -----

Key metrics
Grosspropertyassets	$3.45bn
Gearing (balance sheet)	40.0%
Number of assets	10
Occupancy	95.5%
WALE	6.7years
WACR 4.86%
WARR 3.8%
Charter Hall Interest 15.7%
Charter Hall co-investment $298.0m

Geographic allocation (by GAV)

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

WA
QLD
1%
7%
VIC
25%
NSW
67%
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41

Charter Hall Group 2020 Half Year Results

Appendix – Property Investment

Charter Hall Prime Industrial Fund (CPIF)

Key events during H1 FY20

• Acquisition of 3 core stabilised assets for $466m with a combined WALE of 19.0 years improving the Fund’s closing WALE to 10.7 years and strengthening CPIF’s relationship with key existing and new tenant customers such as Arnotts, Metcash & Viridian Glass

• 4 developments reached completion with a GAV of $107m at Chullora in NSW, Altona in VIC, Trade Coast in QLD & Launceston in TAS. A committed development pipeline of ~$600m on completion GAV is currently in delivery

• Maintained occupancy with leases executed over 37,471sqm of GLA in the Fund’s stabilised portfolio and 109,080sqm of new pre-leases on existing land holdings

• Divested a portfolio of 3 non-core assets in Darwin, Adelaide & Perth for a combined gross value of $81m achieving a sale price of 3% above book value. CPIF now has an 89% allocation to the strong performing eastern seaboard markets

Key metrics
Grosspropertyassets	$4.6bn
Gearing	15.8%
Number of assets	65
Occupancy	98.2%
WALE	10.7years
WACR 5.25%
WARR 3.1%
Charter Hall Interest 4.0%
Charter Hall co-investment $131.8m

• Executed a blend & extend across its $270m AUD swap book improving hedge maturity by 1.9 years to 7.3 years

Debt expiry profile (by facility limit)

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

$673m
$350m
$150m
FY20 FY21 FY22 FY23 FY24 FY25+
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Geographic allocation (by GAV)

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

SA TAS
WA 3% 2%
6%
NSW
34%
QLD
21%
VIC
34%
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42

Charter Hall Group 2020 Half Year Results

Appendix – Property Investment

Core Logistics Partnerships (CLP)

Key events during H1 FY20

• Exchanged to acquire a 4.0 hectare development site at Glendenning in NSW with a potential to deliver 21,000sqm of GLA and an on completion value of ῀$55m in line with CLP’s strategy to upweight in Sydney

• Executed leases over 142,481sqm of GLA. These included 112,199sqm of leases in the Fund’s stabilised portfolio and 30,282sqm of new preleases supporting the portfolio WALE of 10.4 years

• Development completions achieved for Prixcar at Drystone VIC and Woolworths at Launceston TAS for a combined on completion value of $66m

• Executed a new 5-year, $100m debt facility with Mitsubishi UFJ Financial Group (MUFG) improving debt maturity to 4.5 years and lender diversification

Key metrics
Grosspropertyassets	$1.9bn
Gearing	27.5%
Number of assets	37
Occupancy	98.7%
WALE	10.4years
WACR 5.33%
WARR 3.0%
Charter Hall Interest 7.2%
Charter Hall co-investment $87.3m

• Secured additional $150m equity commitment from VFMC & $25m from DIF4

Debt expiry profile (by facility limit)

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

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

Geographic allocation (by GAV)

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

WA
12% NSW
15%
TAS
4%
SA
QLD
5%
9%
VIC
55%
----- End of picture text -----

43

Charter Hall Group 2020 Half Year Results

Appendix – Property Investment

Charter Hall Retail REIT (ASX:CQR)

Key events during H1 FY20

• Acquired 20% interest in Pacific Square, Maroubra and Bass Hill Plaza in September 2019 and 14.7% interest in a BP portfolio of Long WALE convenience retail assets in December 2019[1]

• Divested five assets totalling $106.8m (Katherine, NT, Cooma, NSW, Bairnsdale, VIC, Moe, VIC and Kyneton, VIC)

• Contracted divestments totalling $70.6m to be settled in 2H 20 (Carnarvon, WA, Erindale, ACT and Balo Square, NSW)

• Increased WBC facility by $50m, maturing in FY22

• Weighted average debt maturity is 4.4 years with no debt maturing until FY22

• 14 centres undergoing solar installation with an additional 14 commencing in FY21

Debt expiry profile (by facility limit)

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

$335m
$295m
$252m
$211m
$190m $177m
FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28+
----- End of picture text -----

1. BP portfolio consists of 225 assets tenanted by BP

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

3. Pro-forma gearing post all contracted divestments: Carnarvon, Erindale (settled in January 2020) and Balo Square (settling in May 2020) 4. Refers to contracted weighted average rent reviews of the specialty tenants only

4. Includes BP portfolio

Key metrics2
Grosspropertyassets	$3.2bn
Gearing (balance sheet)3	33.0%
Number of shoppingcentres	55
Number of BP sites	225
Occupancy (weighted byGLA)	98.1%
WALE	6.9years
WARR4 4.2%
WACR5 6.11%
Charter Hall Interest 15.3%
Charter Hall co-investment $285.9m

Geographic allocation (by GAV)[6]

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

SA
ACT
4%
4%
VIC
13%
NSW
49%
WA
15%
QLD
15%
----- End of picture text -----

1. Includes assets held for sale

Charter Hall Group 2020 Half Year Results

44

Appendix – Property Investment

Charter Hall Long WALE REIT (ASX:CLW)

Key events during H1 FY20

• Delivered first half FY20 operating EPS and DPS of 14.0 cents

• Upgraded full year FY20 operating EPS guidance twice

• Barring any unforeseen events and no material change in current market conditions, CLW’s full year FY20 operating EPS guidance of 28.3 cents represents growth of 5.2% over FY19 operating EPS

• Total property acquisitions of $1.4bn, enhancing portfolio WALE, covenant strength and triple net lease exposure

• WALE of 14.5 years, up from 12.5 years as at 30 June 2019

Key metrics
Grosspropertyassets	$3.6bn
Gearing (balance sheet)1	23.8%
Number of assets	384
Occupancy	99.8%
WALE	14.5years
WACR 5.5%
WARR 2.7%
Charter Hall Interest 12.4%
Charter Hall co-investment $262.3m

• 47% of CLW’s portfolio (by net passing income) underpinned by triple net leases

WALE (years)

Geographic allocation (by GAV)

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

14.5
2.2
12.5
0.3
12.0
30 June 2019 31 Dec 2019 (static Lease extensions Acquisitions 31 Dec 2019
portfolio)
----- End of picture text -----

==> picture [219 x 193] intentionally omitted <==

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

NT & TAS
ACT
2%
SA 3%
QLD
9%
21%
NSW
WA
29%
15%
VIC
21%
----- End of picture text -----

1. Reflects balance sheet gearing, pro forma adjusted for the committed acquisition of The Glasshouse, Macquarie Park and Bunnings, Palmerston developments. Unadjusted balance sheet gearing as at 31 December 2019 reporting date was 20.0%.

45

Charter Hall Group 2020 Half Year Results

Appendix – Property Investment

Charter Hall Social Infrastructure REIT (ASX:CQE)

Key events during H1 FY20

• Distribution of 8.35 cpu, an increase of 4.4% on pcp

• NTA per unit of $3.05, an increase of 3.0% from $2.96 per unit at 30 June 2019

• Settled the acquisition of 7 existing childcare centres ($41.6m) with a further 8 contracted ($44.7m) and forecast to settle in second half of FY20

• Development pipeline of 30 sites with a forecast completion value of $184.8m

• Agreed new 20 year leases[1] with Goodstart on 40 properties on improved terms

Key metrics
Gross assets	$1.3bn
Gearing (balance sheet)2	24.9%
Number of assets3	421
Occupancy4	99.8%
WALE5	11.7years
WACR 6.1%
WARR 2.4%
Charter Hall Interest 10.6%
Charter Hall co-investment $98.7m

Debt expiry profile (by facility limit)

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

$200m $200m
$100m
FY23 FY25 FY26
----- End of picture text -----

1. Subject to documentation

2. Look-through gearing of 26.3%

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

4. Vacant property contracted for disposal in February 2020

Geographic allocation (by annual rent)

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

NZ
TAS/NT 7%
1%
SA
NSW/ACT
7%
23%
WA
5%
VIC QLD
23% 35%
----- End of picture text -----

1. Includes agreed leasing transactions agreed subject to documentation

46

Charter Hall Group 2020 Half Year Results

Additional information

Portfolio performance review dates

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

47

Charter Hall Group 2020 Half Year Results

Appendix – Property Investment

Fund key and glossary

Listed entities

Listed entities
ASX:CHC	Charter Hall Group
ASX:CQR	Charter Hall Retail REIT
ASX:CLW	Charter Hall Long WALE REIT
ASX:CQE	Charter Hall Social Infrastructure REIT

Wholesale funds

Wholesale funds
BSWF	Brisbane Square Wholesale Fund
CHOT	Charter Hall Office Trust
CCT	Charter Hall Counter Cyclical Trust
CLP	Core Logistics Partnership
CPIF	Charter Hall Prime Industrial Fund
CPOF	Charter Hall Prime Office Fund
CPRF	Charter Hall Prime Retail Fund
LWHP	Long WALE Hardware Partnership
LWIP, LWIP 2	Long WALE Investment Partnership series
RP1, RP2, RP6	Retail Partnership series
DVP	Charter Hall DVP Fund
CHAIT	Charter Hall Australian Investment Trust
CHPIP	Charter Hall PGGM Industrial Partnership
CHET	Charter Hall Exchanges Trust
BPP	Charter Hall BP Partnership

Direct funds

BW Trust	BW Trust (Direct syndicate)
CDC	Charter Hall Direct CDC Trust
DIF2, DIF3, DIF4	Direct Industrial Fund series
DOF	Direct Office Fund
PFA	Direct PFA Fund
DAT, DAT2	Charter Hall Direct Automotive Trust Series
DCSF	Charter Hall Direct Consumer Staples Fund

Other

Other
CAGR	Compound Annual Growth Rate
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

48

Charter Hall Group 2020 Half Year Results

Appendix – Additional information

Contact information

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David Harrison

Managing Director & Group CEO Charter Hall Group

Sean McMahon

Chief Investment Officer Charter Hall Group

Russell Proutt

Chief Financial Officer Charter Hall Group

Philip Cheetham

Head of Listed Investor Relations Charter Hall Group

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

T: +61 2 8651 9147

E: sean.mcmahon@charterhall.com.au

T: +61 2 8651 9493

E: russell.proutt@charterhall.com.au

T: +61 2 8651 9214

E: philip.cheetham@charterhall.com.au

Presentation authorised by the Board

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

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Charter Hall Group 2020 Half Year Results

Sydney Head Office

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

Brisbane

Melbourne Brisbane Level 14, 570 Bourke Street Level 3, The Annex Melbourne VIC 3000 275 George Street Brisbane QLD 4000 T: +61 3 9903 6100 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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Charter Hall Group 2020 Half Year Results