CHARTER HALL GROUP — Interim / Quarterly Report 2021

Feb 16, 2021

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Charter Hall Group Half Year FY21 Results

17 February 2021

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Charter Hall Group
2021 Half Year Results
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David Harrison
Managing Director
& Group CEO
Sean McMahon
Chief Investment
Officer
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Russell Proutt
Chief Financial
Officer
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Agenda

1. Highlights and Strategy

2. Property FundsManagement

3. Property Investment

4. Financial Result

5. Outlook and Guidance

6. Additional Information

Cover: David Jones Castlereagh Street, Sydney (Settlement anticipated March 2021)

Left: 130 Lonsdale Street, Melbourne

2

Highlights and Strategy

ALDI Distribution Centre, Dandenong, Melbourne

Charter Hall Group 2021 Half YearResults

Highlights and Strategy

Group Highlights[1]

Investment Capacity

Group Returns

Group Returns	Property Investments	Funds Management	Investment Capacity
Operating earnings (6 months)	Property Investment portfolio	FUM growth (6 months)	Group investment capacity6
$129m	$2.0bn	$5.8bn	$6.4bn
Statutory profit2 (6 months)		to
$173m		$46.4bn
			Balance sheet
OEPS (6 months)	Total Property Investment return4	Gross transactions (6 months)	NTA growth (6 months)
27.8cps	10.9%	$6.2bn	3.8%
Return on Contributed Equity3	Property Investment yield	Property Funds Management yield5	Net balance sheet gearing
13.1%	6.0%	4.8%	0.0%

1. Figures and statistics throughout this presentation are for the six months to 31 December 2020 unless otherwise stated

2. Attributable to stapled securityholders

3. Return on contributed equity is calculated as total operating earnings post-tax per security divided by the opening contributed equity per security for the 12 months to 31 December 2020

4. 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 2020

5. Investment capacity calculated as cash plus undrawn debt facilities for CHC and the funds management platform. At 31 December 2020, cash was $1.1bn. Excludes committed and unallotted equity.

6. Total Property Investment (PI) 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 six months to 31 December 2020 (annualised). This excludes investments in new vehicles held for less than a year and investments in Direct funds

Charter Hall Group 2021 Half Year Results

4

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 along side our capital partners

6 months 3 years 5 years
	Gross equity deployed $2.8bn Gross transactions $6.2bn FUM $46.4bn PI Portfolio stable at $2.0bn Divestments $1.3bn Acquisitions $4.9bn FUM growth $5.8bn Total PI return 10.9%
	Gross equity deployed $12.1bn Gross transactions $21.0bn FUM growth $24.5bn Increase in Pl $397m Up 24.3% Divestments $3.7bn Acquisitions $17.3bn Total PI return 10.2%
	Gross equity deployed $16.1bn Gross transactions $30.8bn FUM growth $30.5bn Increase in Pl $0.9bnUp 79.4% Divestments $6.9bn Acquisitions $23.4bn Total PI return 11.7%

Charter Hall Group 2021 Half Year Results

5

Highlights and Strategy

Operating Earnings Growth

Operating earnings per security growth

• 5 Year CAGR (post-tax) 20.3%[1]

• 5 Year CAGR (pre-tax) 25.8%[1]

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86.6cps
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OEPS (pre tax) cps
OEPS (post-tax) cps
69.3cps
56.3cps
43.5cps
40.5cps 47.4cps
33.6cps
37.7cps
30.4cps
35.9cps
27.5cps
27.8cps
FY15 FY16 FY17 FY18 FY19 FY20 1H FY21
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Operating earnings per security growth (excluding CHOT Performance fee)

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5 Year CAGR (post-tax) 14.4% [1]
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55.0cps [2]
53.9cps
39.4cps
33.6cps 33.8cps
30.4cps
27.5cps
27.8cps
FY15 FY16 FY17 FY18 FY19 FY20 1H FY21
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1. 5 Year CAGR’s from period 1 July 2015 to 30 June 2020

2. Based on upgraded FY21 earnings guidance of no less than 55.0cps

Charter Hall Group 2021 Half Year Results

6

Highlights and Strategy

Charter Hall Performance

Outperformance relative to AREIT Index

Total Shareholder Return vs ASX 200 Property Accumulation Index (XPJAI): 1-Year, 3-Year, 5-Year & Since Listing Returns (Compound Annual Growth Rate)

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CHC XPJAI
39.6% p.a.
37.0% p.a.
32.1% p.a.
19.0% p.a.
7.0% p.a.
5.4% p.a.
4.5% p.a.
-4.6% p.a.
1
1 Year 3 Years 5 Years Since Listing
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1. Listed July 2005 Source: UBS

Charter Hall Group 2021 Half Year Results

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Charter Hall Group
2021 Half YearResults
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Property Funds Management

2 Chifley Square, Sydney

8

Property Funds Management

Group Funds Management Portfolio

14.4% FUM growth over six months

		Portfolio value	Lettable area	No. of	Net rent	WALE	Occupancy	WACR
		($bn)	(m sqm)	Properties	($m)	(years)	(%)	(%)
31	December 2020	46.4	8.5	1,395	2,317	9.1	97.2	5.11
30	June 2020	40.5	7.9	1,104	2,167	8.6	97.5	5.27

FUM by equity source

FUM by sector

WALE by sector

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SC Retail
$3.8bn 15.1
14.1
8.1%
Social Infrastructure Industrial & Logistics
Direct (Retail) Equity
$6.8bn Wholesale Equity $3.1bn $12.3bn 11.0
$30.1bn 6.7% 26.5%
14.6%
64.9% 11.6 year
Anchor WALE
Listed
6.7
Funds
5.6
$9.5bn
20.5%
$46.4bn $46.4bn
Long WALE Retail
Office
$6.0bn SC Retail Office Industrial & Long WALE Social
$21.2bn
12.9% Logistics Retail Infrastructure
45.8%
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Charter Hall Group 2021 Half Year Results

9

Property Funds Management

Diversified Tenant Customers

The top 20 tenants make up 58% of platform rent

• 25% of platform leases are NNN

• Cross-sector relationships continue to drive platform growth

Top 20 platform tenants by net income

	12.5% 6.4% 5.9% 5.2% 5.1% 3.3% 2.7% 2.1% 1.9% 1.8% 1.6% 1.5% 1.5% 1.4% 1.1% 1.0% 0.8% 0.8% 0.7% 0.7% FUM ($bn) Rent ($bn) WACR (%) Government % of Sector (%) GLA/NLA m2 mil $/m2 NLA				Social Infrastructure / Other 3.1 0.1 5.39 - 0.4 6,175
		Industrial & Logistics	Long WALE Retail	Office		Shopping Centre Retail Total
		12.3	6.0	21.2		3.8	46.4
		0.6	0.3	1.0		0.3	2.3
		4.94	5.08	4.99		6.15	5.11
		4.8	-	26.0		0.3	12.5
		4.8	1.0	1.6		0.7	8.5
		2,557	6,236	12,990		5,632	5,403

Charter Hall Group 2021 Half Year Results

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Property Funds Management

Funds Under Management Growth FUM growth of 14.4% in 1H FY21, to $46.4bn

Funds under management movement ($bn)

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$1.2bn $46.4bn
$4.9bn
($1.3bn) $1.1bn
$40.5bn
June-20 Acquisitions Divestments Net Capex 1H FY21
revaluations
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Funds under management by equity source ($bn)

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$46.4bn
$40.5bn $6.8bn
$6.1bn
$9.5bn
$30.4bn
$8.2bn
$5.0bn $30.1bn
$23.2bn
$26.3bn
$19.8bn $2.9bn $6.3bn
$17.5bn
$2.8bn $4.4bn
$19.2bn
$2.5bn
$4.1bn
$2.5bn $15.9bn
$12.4bn $12.9bn
Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 1H FY21
YoY Growth
13.7% 17.0% 31.1% 33.2% 14.4%
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4.5-year FUM CAGR Wholesale 21.7% Listed 34.0%

Retail 25.0%

Charter Hall Group 2021 Half Year Results

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Property Funds Management

1H FY21 Transactional Activity

Transactional activity led by Industrial & Logistics and Long WALE Retail sectors

– 27 funds participated in transactions during the half

										Social
		Industrial &		LongWALE						Infrastructure/			Shopping Centre
		Logistics		Retail			Office			Other			Retail		Total
Acquisitions		1,446		1,904			923			588			-		4,861
Divestments		(370)		(217)			(477)			(214)			(57)		(1,335)
Net transactions		1,076		1,687			446			374			(57)		3,526
Gross
transactions		1,816		2,122			1,400			802			57		6,196

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Bunnings, 450 Stafford Road, Stafford

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bp Greenlane, Auckland

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Telstra Exchange, 76-78 Pitt Street, Sydney

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Coles Distribution Centre, 2 Sturton Road, Adelaide

Charter Hall Group 2021 Half Year Results

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Property Funds Management

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Development Drives FUM Growth

$5.2bn of completions and committed projects

Completion value($m)

	Completions	Committed	Uncommitted	Total
	(last 12	projects	projects2	pipeline3
	months)
Industrial & Logistics	465	1,062	890	1,952
Long WALE Retail	-	75	-	75
Office	1,319	2,052	2,2684	4,320
Social Infrastructure	51	169	34	203
Shopping Centre Retail1	-	19	32	51
Total / weighted average	1,835	3,376	3,224	6,600

Artist impression: 555 Collins Street, Melbourne

1. Reflects development spend only and excludes existing centre value

2. Includes potential end value of uncommitted development projects

3. $3.6bn included in FUM at 31 December 2020

4. All $2.3bn of uncommitted Office developments have approved DA’s

Charter Hall Group

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2021 Half Year Results

Property Funds Management

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– Strong period of inflows from all equity sources – Continued creation of new Wholesale Partnerships, including the ALDI & Ampol portfolios, together with the PGGM Partnership

• Growth in equity inflows continues with growth in scale

• Over 45,000 investors across FUM platform

Equity Inflows

($m)	FY18	FY19	FY20	1H FY21
Wholesale pooled funds	649	1,802	1,272	766
Wholesale partnerships	322	219	1,298	1,140
Listed funds	77	692	1,369	392
Direct funds	653	691	1,136	520
Gross equity inflows	1,701	3,404	5,076	2,819
Net equity inflows	1,487	3,287	4,585	2,433

Charter Hall Group 2021 Half Year Results

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Charter Hall Group
2021 Half YearResults
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Property Investment

ALDI Distribution Centre, Dandenong, Melbourne

Property Investment

Property Investment Portfolio

80% east coast weighting

– Property investment WALE increased from 8.7 to 9.1 years

	Portfolio Value	No. of	WALE	Occupancy	WARR	WACR	WADR
	($bn)	Properties	(years)	(%)	(%)	(%)	(%)
31 December 2020	2.0	1,322	9.1	97.1	3.0	5.15	6.3
30 June 2020	2.0	1,027	8.7	97.6	3.3	5.25	6.5

Diversification by sector

Geographic allocation

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NZ
SC Retail WA
1%
$217m 14%
10.7%
Industrial & Logistics TAS
$344m
1%
Social Infrastructure 17.0% ACT
$247m 1%
12.2%
SA
4%
NSW
42%
$2,028m $2,028m
Long WALE Retail
$404m
19.9%
Office
VIC
$816m 23%
40.3%
QLD
15%
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Charter Hall Group 2021 Half Year Results

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Property Investment

Property Investment Portfolio Movement

PI yield of 6.0% remains attractive

Property Investment portfolio movement

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$67m ($67m)
$2,028m $2,028m
Jun-20 Change in valuation Net investments Dec-20
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Property Investment portfolio yield

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10.0%
$2,028m $2,028m
8.0%
$1,844m
$1,706m
$1,527m
6.0%
$1,098m
4.0%
2.0%
-
Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Dec-20
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Portfolio value $m PI Yield %

Charter Hall Group 2021 Half Year Results

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Property Investment

Diversified Property Investment Earnings

Top 10 asset exposures represent only 10.4% of Group earnings (post-tax)

• 77% repeat customers across 2,547 leases

• Tenant retention rate of 85.6% for the 6 months to 31 December 2020

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Top 10 tenants by net income [1] Property Investment earnings Top 10 asset exposures [2]
(by sector)
Government 11.7% # 1 1.8%
SC Retail
Industrial & Logistics
Wesfarmers 10.0% 14% # 2 1.6%
15%
Telstra 6.4% # 3 1.2%
Social Infrastructure
Woolworths 5.9% # 4 1.2%
11%
Long WALE Retail
Coles Group 4.6% 16% # 5 1.1%
BP 4.3% # 6 0.8%
Commonwealth Bank 3.0% # 7 0.7%
Amazon 2.9% # 8 0.7%
Macquarie Group 2.3% # 9 0.6%
Office
44%
AMPOL 2.2% # 10 0.6%
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1. Proportion of CHPT net income by tenant

2. Asset exposure measured as net income of property, weighted for CHPT ownership stake, divided by post-tax group OEPS

Charter Hall Group

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2021 Half Year Results

Property Investment

ESG

Ronald McDonald House Charities Jessie Street Centre, Sydney

Urban farm 1 Shelley Street, Sydney

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Environment

Climate resilience

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Social

Strong Communities

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Governance

Responsible Business

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Recognised in 2020 PRI Leaders Group for our work in climate reporting

Progressing with our roadmap to align with TCFDrecommendations

Signatory to World Green		Re	cognised in 2020 PRI	Leveraging our spaces,		Recognised as early		Progressing with our
Building Council Net Zero		Leaders Group for our		profits and peoples		adopter and amongst		roadmap to align with
Buildings commitment		work in climate reporting		time towards		the first building portfolio		TCFDrecommendations
				community		internationally
–	64% of Retail energy needs	–	Increased Australia’s largest	organisations	–	Charter Hall	–	Published our first Modern Slavery
	being powered by 14 MW		Green Star footprint, with 234	– Partnered with community		workplaces, CHOT		Statement outlining our efforts to
	solar across operating assets		Green Star rated buildings	and social enterprises to		and CPOF achieved a		prevent occurrences of modern
–	Industrial & logistics portfolio renewable footprint increased by 3.3MW of solar since June	–	15 Funds completed GRESB Assessment, and Group achieved A Public Disclosure Rating. CPIF	create meaningful employment for young and disadvantage people	–	WELL portfolio score Activated precincts to improve experience	–	slavery in our supply chain Ongoing implementation of COVIDSafe return to work
	(total solar in sector 12.5MW)		awarded Industrial Global	– Foundation for Young		as our customers		initiatives following government
			Development Sector Leader	Australians (FYA)		return to their		guidelines to safeguard the
		–	2020 Ongoing climate change adaptation planning across	– Kick Start Cafe – Two Good Co.		workplaces		health, safety and wellbeing of our customers, people and the community
			portfolios

Charter Hall Group 2021 Half Year Results

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Charter Hall Group
2021 Half YearResults
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Financial Result

12 Shelley Street, Sydney

Financial Result

Earnings Summary

• PI EBITDA increased by 6.3%, with continued recycling of capital into new funds and partnerships

• PFM EBITDA in 1H FY20 included $98m for the CHOT performance fee

• DPS growth of 6.0% on 1H FY20 to 18.6cps

• Distribution payout ratio of 67% in the half

• 3.2cps of franking credits distributed

($m)	1HFY20	1HFY21	Change%
PI EBITDA	56.8	60.4	6.3%
DI EBITDA	14.8	7.2	(51.4%)
PFM EBITDA1	228.2	97.1	(57.5%)
EBITDA	299.8	164.7	(45.1%)
Depreciation	(3.8)	(4.3)	13.2%
Interest income/expense	(5.5)	(3.7)	(32.7%)
Operatingearnings pre-tax	290.5	156.7	(46.1%)
Tax	(64.7)	(27.4)	(57.7%)
Operatingearnings post-tax	225.8	129.3	(42.7%)
Non operating items
Change in Property Investment valuation2	97.4	66.6	(31.6%)
Other non-operating items2	(10.0)	(22.7)	126.9%
Statutory profit after tax	313.2	173.2	(44.7%)
OEPSpre-tax (cps)	62.4	33.6	(46.1%)
OEPSpost tax(cps)	48.5	27.8	(42.7%)
OEPSpost tax excludingCHOT	33.1	27.8	(16.1%)
Distributionper security (cps)	17.5	18.6	6.0%
Payout Ratio	36%	67%

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

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

Charter Hall Group 2021 Half YearResults

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Financial Result

Property Funds Management

• Funds management fees up 25.4% driven by continued momentum in FUM growth

• Transaction and performance fees in 1H FY20 included $98m for the CHOT performance fee

• Property services revenue up 16.7% to $33.5m:

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

• Development fees driven by continued development activity

• Total PFM expenses down by 10.7% through cost control measures implemented during CY2020

($m)	1HFY20	1HFY21	Change%
Fund management fees	71.2	89.3	25.4%
Transaction and performance fees	187.4	27.1	(85.5%)
Investment management revenue	258.6	116.4	(55.0%)
Property management fees	8.3	9.4	13.3%
Development fees	9.0	12.5	38.9%
Leasing fees	7.5	7.6	1.3%
Facilities and project management fees	3.9	4.0	2.6%
Property services revenue	28.7	33.5	16.7%
PFM revenue	287.3	149.9	(47.8%)
PFM expenses	(43.3)	(36.4)	(15.9%)
Corporate expenses	(15.8)	(16.4)	3.8%
Total PFM expenses	(59.1)	(52.8)	(10.7%)
PFM EBITDA	228.2	97.1	(57.5%)

• PFM EBITDA margin expansion to 57.0% (excluding Transaction & Performance fees)

Charter Hall Group 2021 Half YearResults

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Financial Result

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1. Pending settlement
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Operating Cashflow

Sydney CBD

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$8m ($16m)
$129m
($32m)
$90m $86m
Operating Earnings Non-cash items Change in working Tax expense vs cash Operating Cashflow Distribution
capital tax paid
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– 1H FY21 distribution covered 150% by operating earnings and 105% by operating cashflow

Note: Figures do not add due to rounding

Charter Hall Group 2021 Half Year Results

23

Financial Result

Balance Sheet and Return Metrics

• Further strengthened cash position to $264m, balance sheet gearing remains 0%

• NTA per security growth of 3.8% since June 2020 to $4.44, driven by revaluations and retained earnings

• Strong return metrics on capital employed in the business

($m)	30 Jun 2020	31 Dec 2020
Cash	237	264
Property investment	2,028	2,028
Development investment	48	52
Other assets1	107	116
Intangibles	119	115
Total assets	2,538	2,575
Borrowings1	232	232
Other liabilities	227	189
Total liabilities	458	421
Total equity	2,080	2,154
Contributed equity per stapled security	$3.71	$3.69
NTAper stapled security2	$4.28	$4.44
Balance sheet gearing	0.0%	0.0%
Look through gearing	29.1%	28.1%
Return metrics
Return on NTA(pre-tax)3	22.2%	13.2%
Return on NTA(post-tax)3	17.8%	11.1%
Return on contributed equity (post-tax)4	18.6%	13.1%

Note: Balance sheet presented excludes the consolidation of the Charter Hall Direct Long WALE Fund (LWF). Reconciliation to financial statements can be found on slide 39.

1. Net of swap mark-to-market of $36m relating to the USPP notes (representing USPP repayment value of $231.5m)

2. Net tangible assets (NTA) per stapled security ($) is calculated using assets less liabilities, net of intangible assets and related deferred tax

3. Return on NTA is calculated as total operating earnings pre-tax/post-tax per security divided by the opening NTA per security for the 12 months to 31 December 2020

4. Return on contributed equity is calculated as total operating earnings post-tax per security divided by the opening contributed equity per security for the 12 months to 31 December 2020

Charter Hall Group 2021 Half Year Results

24

Financial Result

Capital Management

Substantial funding capacity available across the Group with $6.4bn of available liquidity plus committed and uncalled equity

– $3.7bn of new and refinanced debt facilities agreed in 1H21 with no material maturities in FY21 or FY22

• Weighted average gearing across the funds is 28%

Funds Platform Balance Sheet Gearing (by Equity Source)

Funds platform debt metrics1	30 Jun 20	31 Dec 20
Total platform facility limits ($m)	16,553	18,394
Total platform undrawn debt ($m)	3,585	5,270
Total platform cash ($m)	1,411	1,084
Look through weighted average debt maturity (yrs)2	4.2	4.2
Look through weighted average cost of debt3	2.5%	2.3%
Look through interest rate hedging (%)	61%	52%

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35.0%
30.0% Average Gearing
29.5% 28.2%
28.4%
25.0%
23.5%
20.0%
15.0%
10.0%
5.0%
-
Wholesale Direct Listed
% Platform
FUM
65% 15% 21%
Balance Sheet Gearing (%)
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1. Total platform includes Corporate debt facility limits of $462m, drawn to nil net of cash

2. Duration is based on facility limits

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

Charter Hall Group 2021 Half Year Results

25

Outlook and Guidance

Coles Distribution Centre, 2 Sturton Road, Adelaide

Charter Hall Group 2021 Half YearResults

Outlook and Guidance

FY21 Operating Earnings Guidance

The Group’s previous FY21 guidance was for post-tax operating earnings per security (OEPS) growth of approximately 53.0cps.

Based on no material change in current market conditions and assuming the COVID-19 operating environment does not deteriorate markedly, FY21 guidance is for post-tax operating earnings per security of no less than 55.0 cps, excluding any accrued performance fees.

FY21 distribution per security guidance is unchanged at 6% growth over FY20.

242 Exhibition Street, Melbourne

Charter Hall Group 2021 Half Year Results

27

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Charter Hall Group
2021 Half YearResults
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Additional Information

Management Team Property Funds Management Property Investment

201 Elizabeth Street, Sydney

Additional Information

Management Bench Experience Charter Hall Executive Leadership Group

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David Harrison Managing Director & Group CEO

33 years industry experience

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Sean McMahon Chief Investment Officer

• 31 years industry experience

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Russell Proutt Chief Financial Officer

• 30 years industry experience

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Carmel Hourigan Office CEO

• 29 years industry experience

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Richard Stacker Industrial & Logistics CEO

• 26 years industry experience

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Natalie Devlin Chief Experience Officer

• 23 years industry experience

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Sheridan Ware Chief Information & Technology Officer

Greg Chubb

Steven Bennett

Retail CEO

Direct CEO

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

Charter Hall Group 2021 Half Year Results

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Additional Information

Charter HallGroup Property Overview[1]

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$0.1bn
$3.9bn $7.5bn
$2.0bn
$20.7bn
$10.9bn
$0.5bn
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1. Excludes New Zealand assets; Maxim and other smaller investments

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Additional Information

Charter Hall Managed Funds

Wholesale Equity Retail Equity Listed Equity	Industrial & Logistics $12.3bn CPIF $6.3bn CLP $2.0bn CHALWF $0.5bn CHPIP $0.3bn DIFs $1.8bn LWF $38m CLW $1.3bn CQR $0.1bn	Long WALE Retail $6.0bn LWHP $1.8bn LWIPs3 $0.7bn BPH $0.2bn DVP $0.1bn Ampol/bp $0.7bn DJs $0.1bn BW Trust $0.1bn LWF $0.2bn CLW $1.5bn CQR $0.6bn	Office $21.2bn CPOF $7.7bn CHOT $3.6bn BSWF1 $0.6bn CCT $0.5bn Mandates $0.9bn DVP $0.5bn Chifley $1.1bn 242X/201E $0.7bn CHAIT $0.4bn DOF $2.4bn PFA $1.8bn CLW $1.0bn	Social Infrastructure/ Other $3.1bn DVAP $0.1bn CHET $0.4bn Other $0.3bn MAXIM $0.2bn CQE $1.5bn CLW $0.7bn
					Shopping Centre Retail $3.8bn
					CPRF $0.3bn RPs2 $0.6bn
					CQR $2.8bn

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

1. CPOF holds 49.9% of the units in the Brisbane Square Wholesale Funds (BSWF) 2. RPs include RP1, RP2 and RP6

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

Charter Hall Group 2021 Half Year Results

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Additional Information

Wholesale Pooled and Partnerships

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Gearing 29.5% WALE 8.3yrs CHC investment $1.3bn

FUM $30.1bn

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Occupancy 96.8%

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Cap rate 4.92%

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No. 1 Martin Place, Sydney

Charter Hall Group 2021 Half Year Results

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Additional Information

Wholesale Platform

Wholesale Partnership deals in 1H FY21

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Partner Tenant Size (m)
$682m
$353m
$141m [2]
Various $190m
Future
Development
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Wholesale Platform, FUM by Equity Origin[1]

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North America
9%
Middle East
1%
Europe
Asia Pacific
11%
26%
$30.1bn
99 Investors
Australia
53%
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1. Graph reflects external equity investors only and does not include investments held by CHPT

2. Tranche 2 only. Tranche 1 ($324m) was acquired in June 2020.

Charter Hall Group

33

2021 Half Year Results

Additional Information

Major Wholesale Property Investment Portfolio Returns Relative to sector specific benchmark indices

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22.2%
14.2%
12.3% 12.5% 12.6%
11.3% 11.3% 11.3% 11.2% 11.2%
1.3% 1.3%
CHOT CPOF CPIF CLP LWHP LWIP
2015 to 2020 2015 to 2020 2015 to 2020 2015 to 2020 2015 to 2020 2015 to 2020
Net Return (% p.a) MSCI/IPD Sector Benchmarks
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Charter Hall Group 2021 Half Year Results

34

Additional Information

Listed

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FUM $9.5bn

Occupancy 97.8%

Cap rate 5.64%

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Gearing 23.5%

WALE 11.2yrs CHC investment[1] $0.6bn

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Woolworths, Distribution Centre, Dandenong

1. Held at accounting value not market value

Charter Hall Group 2021 Half Year Results

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Additional Information

Charter Hall Direct

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FUM $6.8bn

Occupancy 97.9%

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Cap rate 5.22%

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Gearing 28.4%

WALE 9.0yrs CHC investment $0.1bn

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10 Shelley Street, Sydney

Charter Hall Group 2021 Half Year Results

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Additional Information

Direct Funds have returned an average of 12.0% p.a. since inception

Outperforming their respective MSCI/IPD indices by a factor of approximately 1.5x

-5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%	14.3% 12.4% 19.2% 10.4% 8.9% 9.0% 9.6% 15.1% 10.2% 11.1% 8.4% 8.3% 8.2% 7.5% 6.8% 5.0% 5.4% 8.2% 6.1%	14.3% 12.4% 19.2% 10.4% 8.9% 9.0% 9.6% 15.1% 10.2% 11.1% 8.4% 8.3% 8.2% 7.5% 6.8% 5.0% 5.4% 8.2% 6.1%	14.3% 12.4% 19.2% 10.4% 8.9% 9.0% 9.6% 15.1% 10.2% 11.1% 8.4% 8.3% 8.2% 7.5% 6.8% 5.0% 5.4% 8.2% 6.1%	14.3% 12.4% 19.2% 10.4% 8.9% 9.0% 9.6% 15.1% 10.2% 11.1% 8.4% 8.3% 8.2% 7.5% 6.8% 5.0% 5.4% 8.2% 6.1%	14.3% 12.4% 19.2% 10.4% 8.9% 9.0% 9.6% 15.1% 10.2% 11.1% 8.4% 8.3% 8.2% 7.5% 6.8% 5.0% 5.4% 8.2% 6.1%	14.3% 12.4% 19.2% 10.4% 8.9% 9.0% 9.6% 15.1% 10.2% 11.1% 8.4% 8.3% 8.2% 7.5% 6.8% 5.0% 5.4% 8.2% 6.1%	14.3% 12.4% 19.2% 10.4% 8.9% 9.0% 9.6% 15.1% 10.2% 11.1% 8.4% 8.3% 8.2% 7.5% 6.8% 5.0% 5.4% 8.2% 6.1%	14.3% 12.4% 19.2% 10.4% 8.9% 9.0% 9.6% 15.1% 10.2% 11.1% 8.4% 8.3% 8.2% 7.5% 6.8% 5.0% 5.4% 8.2% 6.1%	14.3% 12.4% 19.2% 10.4% 8.9% 9.0% 9.6% 15.1% 10.2% 11.1% 8.4% 8.3% 8.2% 7.5% 6.8% 5.0% 5.4% 8.2% 6.1%	14.3% 12.4% 19.2% 10.4% 8.9% 9.0% 9.6% 15.1% 10.2% 11.1% 8.4% 8.3% 8.2% 7.5% 6.8% 5.0% 5.4% 8.2% 6.1%
	-1.3%
	DIF2 (WS) 2013-2020 Australian Industrial & Logistics	DIF3 (WS) 2014-2020 Australian Industrial & Logistics	BW Trust 2014-2020 Australian Diversified / Long WALE	DAT 2015-2020 Australian Diversified / Long WALE	DAT2 2016-2020 Australian Diversified / Long WALE	LWF 2017-2020 Australian Diversified / Long WALE	PFA (Ordinary) 2017-2020 Australian Office	DOF (WSA) 2014-2020 Australian Office	DIF4 2016-2020 Australian Industrial & Logistics	WPS1 2020-2020 Australian Diversified / Long WALE
	Direct Fund (%p.a.) Benchmark (% p.a.)

1. Benchmark refers to the MSCI/IPD Unlisted Core Wholesale Property Fund Index as at December 2020. Past performance is not a reliable indicator of future performance

2. DIF2, DIF3, DIF4, LWF, DAT, DAT2, DOF – returns assume Bonus Units or Entitlement Offer as per respective PDS

Charter Hall Group 2021 Half Year Results

37

Additional Information

CHPT Property Investment Portfolio

	Industrial & Logistics	Ownership stake (%) Charter Hall Investment ($m) Charter Hall PI Income ($m) WALE (years) WACR (%) WADR (%) WARR (%) PI Yield2 (%)
	Charter Hall Prime Industrial Fund(CPIF)	3.0 142.4 3.3 10.6 4.8 6.3 2.9 5.0
	Core Logistics Partnership (CLP)	5.8 78.9 2.3 9.2 4.9 6.3 3.0 5.7
	Charter Hall PGGM Industrial Partnership (CHPIP)	12.0 18.8 0.4 10.7 5.0 6.4 2.7 6.7
	Long WALE Retail
	LongWALE Hardware Partnership (LWHP)	14.9 155.8 3.4 8.1 4.8 6.2 2.7 5.2
	Ampol Service Stations(CHAPF)	5.0 34.7 0.1 18.9 5.5 5.2 1.0 1.3
	Other Long WALE Retail investments	33.3 0.8 n/a n/a n/a n/a n/a
	Office
	Charter Hall Prime Office Fund(CPOF)	6.0 310.9 7.7 7.0 4.9 6.2 3.6 4.7
	Charter Hall Office Trust(CHOT)	15.7 261.4 9.6 6.4 4.7 6.2 3.6 6.0
	Brisbane Square Wholesale Fund(BSWF)	16.8 103.3 4.4 6.2 5.5 6.6 3.5 7.8
	Other Office investments	57.7 2.2 n/a n/a n/a n/a n/a
	Social Infrastructure
	Charter Hall Social Infrastructure REIT(ASX:CQE)3	8.8 93.3 2.6 14.0 6.1 n/a 2.3 5.2
	Charter Hall Exchanges Trust(CHET)	14.5 50.7 1.9 19.6 4.3 5.6 0.2 6.6
	Shopping Centre Retail
	Charter Hall Retail REIT(ASX:CQR)3	10.0 210.3 7.5 7.5 6.0 6.7 3.31 6.9
	Charter Hall Prime Retail Fund(CPRF)	29.4 47.2 2.2 4.3 6.2 7.1 4.11 7.5
	Other Shopping Centre Retail investments	0.3 0.0 n/a n/a n/a n/a n/a
	Diversified
	Charter Hall LongWALE REIT(ASX:CLW)3	11.1 299.6 9.0 14.1 5.2 6.0 2.2 6.6
	Charter Hall Direct LongWALE Fund(LWF)	42.7 49.0 1.8 6.8 5.7 6.8 2.5 8.5
	Charter Hall DVP Fund(DVP)	11.1 32.5 0.6 6.9 4.8 6.2 3.5 3.5
	Other investments	47.7 0.8 n/a n/a n/a n/a n/a
	Property Investment Total4	11.9 2,027.8 60.4 9.1 5.1 6.3 3.0 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

3. Held at accounting value not market value

4. Weighted average ownership stake, excluding other investments

Charter Hall Group

38

2021 Half Year Results

Additional Information

Statutory Balance Sheet Reconciliation

($m) Statutory Balance Sheet Adj. 1: Reclassify LWF as Equity Accounted investment Adj 2: Reclassify mark-to-market on derivatives Investor Presentation (slide 24)	($m) Statutory Balance Sheet Adj. 1: Reclassify LWF as Equity Accounted investment Adj 2: Reclassify mark-to-market on derivatives Investor Presentation (slide 24)	($m) Statutory Balance Sheet Adj. 1: Reclassify LWF as Equity Accounted investment Adj 2: Reclassify mark-to-market on derivatives Investor Presentation (slide 24)	($m) Statutory Balance Sheet Adj. 1: Reclassify LWF as Equity Accounted investment Adj 2: Reclassify mark-to-market on derivatives Investor Presentation (slide 24)	($m) Statutory Balance Sheet Adj. 1: Reclassify LWF as Equity Accounted investment Adj 2: Reclassify mark-to-market on derivatives Investor Presentation (slide 24)
Cash 267 (3) - 264
Property Investment 1,968 60 2,028
Development Investment 52 - - 52
Investment Properties 181 (181) - -
Other assets 169 (17) (36) 116
Intangibles 115 - - 115
Total assets 2,752 (141) (36) 2,575
Borrowings 327 (59) (36) 232
Other liabilities 190 (1) - 189
Total liabilities	517	(60)	(36)	421
Total equity	2,235	(81)	-	2,154

Charter Hall Group 2021 Half Year Results

39

Additional Information

Portfolio Performance Review Dates

Fund	Portfolio Performance ReviewDates
Charter Hall Prime Office Fund (CPOF)	3 yearly – FY21, FY24, etc
Brisbane Square Wholesale Fund (BSWF)	3 yearly – FY22, FY25, etc
Charter Hall Direct Industrial Fund No. 4 (DIF4)	5 yearly – FY22, FY27, etc
Charter Hall Prime Industrial Fund (CPIF)	3 yearly – FY22, FY25, etc
Long WALE Hardware Partnership (LWHP)	7 yearly – FY22 plus individual asset divestment performance fees
Retail Partnership No. 2 (RP2)	7 yearly – FY22, etc
Retail Partnership No. 6 (RP6)	7 yearly – FY22, etc
Charter Hall Direct Industrial Fund No. 3 (DIF3)	FY22
Charter Hall Direct Automotive Trust (DAT)	FY22
Charter Hall Direct Automotive Trust No. 2 (DAT2)	FY22
Core Logistics Partnership (CLP)	FY23 plus individual asset divestment performance fees
Charter Hall Direct Long WALE Fund (LWF)	5 yearly – FY23, etc
Charter Hall PFA Fund (PFA)	5 yearly – FY23, etc plus individual asset divestment performance fees
Charter Hall Direct BW Trust (BW Trust)	FY24
Counter Cynical Trust (CCT)	FY25
Direct Office Fund (DOF)	5 yearly – FY25, etc

Charter Hall Group 2021 Half Year Results

40

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 Social Infrastructure REIT

Wholesale funds
BSWF	Brisbane Square Wholesale Fund
CHALWF	Charter Hall Aldi Logistics Wholesale Fund
CHOT	Charter Hall Office Trust
CCT	Charter Hall Counter Cyclical Trust
CLP	Core Logistics Partnership
CPIF	Charter Hall Prime Industrial Fund
CPOF	Charter Hall Prime Office Fund
CPRF	Charter Hall Prime Retail Fund
LWHP	Long WALE Hardware Partnership
LWIP, LWIP2	Long WALE Investment Partnership series
RP1, RP2, RP6	Retail Partnership series
DVP	Charter Hall DVP Fund
CHAIT	Charter Hall Australian Investment Trust
CHET	Charter Hall Exchanges Trust
BPP	Charter Hall bp Partnership
BPH	Charter Hall BP Holding Trust
CHAPF	Charter Hall Ampol Property Fund

Direct funds

Direct funds
BW Trust	Charter Hall Direct BW Trust (Direct syndicate)
DIF2, DIF3, DIF4	Charter Hall Direct Industrial Fund series
DOF	Charter Hall Direct Office Fund
PFA	Charter Hall Direct PFA Fund
DAT, DAT2	Charter Hall Direct Automotive Trust Series
LWF	Charter Hall Direct Long WALE Fund
WPS1	Charter Hall Wholesale Property Series No.1

Other

Other
CAGR	Compound Annual Growth Rate
DI	Development Investments
FUM	Funds Under Management
NTA	Net Tangible Assets
OEPS	Operating Earnings per Security
PFM	Property Funds Management
PI	Property Investments
WACR	Weighted Average Cap Rate
WADR	Weighted Average Discount Rate
WALE	Weighted Average Lease Expiry
WARR	Weighted Average Rent Review

Charter Hall Group 2021 Half Year Results

41

Additional Information

Further information

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David Harrison

Managing Director & Group CEO

Charter Hall Group

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

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Sean McMahon

Chief Investment Officer

Charter Hall Group

+61 2 8651 9147 sean.mcmahon@charterhall.com.au

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Russell Proutt

Chief Financial Officer

Charter Hall Group

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

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Philip Cheetham

Head of Listed Investor Relations

Charter Hall Group

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

Presentation authorised by the Board

Charter Hall Group 2021 Half Year Results

42

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charterhall.com.au/chc

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.

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