21 November 2013

Charter Hall Group

Investor Day 2013

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Charter Hall Group

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Agenda

Overview of Charter Hall vision, values and strategy 1

David Southon & David Harrison, Joint Managing Directors

Our view of real estate markets around the nation 2

Chris Freeman, Research Manager

Wholesale funds – Growth, positioning and performance

3 Andrew Glass, Head of Wholesale Pooled Funds Adrian Taylor, Head of Wholesale Partnerships

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Break

Retail investor funds – Capitalising on our position and leveraging off growth 4 in SMSFs

Richard Stacker, Head of Charter Hall Direct Property

Update on operations

5 Craig Newman, Head of Office and Industrial Asset Management John Courtney, Head of Retail Asset Management

Closing remarks 6

David Harrison, Joint Managing Director

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Charter Hall Group Investor Day 2013

Overview of Charter Hall Vision, Values and Strategy David Southon & David Harrison, Joint Managing Directors

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Charter Hall Group

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What do we stand for?

A 3 minute video

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Charter Hall Group Investor Day 2013

Charter Hall Group

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Our Vision

Vision, purpose, values, strategy and goals

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OUR VISION The smart property choice

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OUR PURPOSE

To grow investor wealth through smart property outcomes

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OUR VALUES INTEGRITY ACCOUNTABILITY PASSION EXPERTISE COLLABORATION

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OUR STRATEGY

To use our specialist property expertise to access, deploy, manage and co-invest equity alongside our partners in the core real estate sectors of office, retail and industrial to create value and provide superior income and capital returns for our clients and Charter Hall securityholders .

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PRODUCT PERFORMANCE PARTNER PEOPLE To provide innovative and sustainable To drive sustainable To be a trusted To be the products for our investors, customers returns for our and valued partner to place for people and the community investors and people all of our stakeholders in property

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OUR GOAL To be Australia’s best and most highly regarded property investment and funds management business

Charter Hall Group Investor Day 2013

Charter Hall Group

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Investing in our Brand

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Office Digital Screens

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Industrial Pylon Sign

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Retail Signage

Charter Hall Group Investor Day 2013

Charter Hall Group

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Upgraded Investor Centre

www.charterhall.com.au

Charter Hall’s new Investor Centre

Our Investor Centre provides investors with access to information on Charter Hall Group, our listed and unlisted managed funds and provides a facility for prospective investors to find the right investment opportunity
New functionality for CHC investors:
Calendar
Results page
Meetings page
Analyst coverage
Improved corporate information including capabilities and services, a property search facility for all stakeholders, and a new careers section

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Charter Hall Group Investor Day 2013

Charter Hall Group

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New Way of Working

Adding value to Charter Hall and our clients

Physical space designed to support a workforce that is empowered to work anywhere, anytime with a focus on the business results
Being an employer of choice, attracting and retaining people who align with Charter Hall’s values of integrity, accountability, passion, expertise and collaboration.
Increased productivity through knowledge sharing, respect, trust, collaboration and supportive technology
A Group wide initiative breaking down barriers, empowering individuals and teams, and supporting our vision to be ‘the smart property choice’

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Charter Hall Group Investor Day 2013

Charter Hall Group

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Corporate Responsibility and Sustainability

Sustainability continues to be a core part of how we manage risks and enhance value across ~~our business~~

To grow investor wealth by delivering smart property outcomes
To actively work to reduce our consumption of natural resources
To make a positive contribution to the communities where we work and operate
To create a safe and engaging work environment that attracts, develops, retains and supports high performing people

We recognise that responding to environmental and social factors builds stakeholder support and contributes to our commercial success

Charter Hall Group Investor Day 2013

Charter Hall Group

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Evolution of the Business Model

Repositioning of the business 2010-2013

	FY10	21 Nov 2013	Comment
Property Funds Management
Domestic FUM	$7.9bn	$10.1bn	Total FUM
			broadly
Total FUM	$10.3bn	$10.3bn	in line
Offshore / Non Core			Repositioning
Opportunistic FUM	44%	3%	substantially
(% of portfolio)			complete
Property Funds	22%	35%1	Improvement in
Management Margin			margin
Property Investments
Property Investment	$600m	$616m	Improved
Portfolio			quality
Property investments			Repositioning
in offshore / non core	37%	3%	substantially
(% of portfolio)			complete
Co-investment yield	5.7%	7.5%1	Improvement in
			property
			investment yield
Group Performance
OEPS	16.44 cps	23.94cps1	13.3% CAGR
			growth
ROE	6.5%	11.2%1	Improved ROE
Gearing	6.6%	1.9%1	Low gearing
Market Cap	$750m	$1.2bn	Security price
			growth

Progress since FY10

Focus on smart solutions for investors, tenants and communities in Australian retail, office and industrial sectors
Repositioned products including delisting Office Trust, divesting offshore and non core assets, discontinuing opportunistic funds series
Enhanced Fund Services capability to align to sector and support future growth
Retail Investor platform expanded
Developed wholesale partnership/mandate offering for global institutional investors and domestic pension funds
New products launched for wholesale and direct investors
Strong balance sheet maintained
Improvement in earnings quality across the funds management and investment portfolio

Consistent outperformance of A REIT sector TSR, EPS and DPS growth.

Group performance, margin and yield information based on FY13 results

Charter Hall Group Investor Day 2013

Charter Hall Group

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Charter Hall Competitive Advantages

Focused – domestic focus, specific asset sectors with specialist professionals
Multiple sources of equity – through the cycle diversity of equity flows
Track record – long term relationships with investors built on consistent performance
Senior management – experience, industry reach and agility

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Charter Hall Group Investor Day 2013

Charter Hall Group

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Recap on FY14 Activity to date

Completed a $150m equity raising target for CPIF
Successfully closed DIF2 capital raising oversubscribed at $135m
CLP has increased total equity committed to $356m and total investment capacity to $525m through an additional $98m of equity commitments (including CHC’s $49m)
About $300m of industrial acquisitions have been contracted or completed since year end
CHOT acquired the remaining 50% interest in No.1 Martin Place, Sydney, funded via $103m equity raising (CHC contributed its $15m pro-rata stake)
Completed or contracted asset sales realising $49m of Charter Hall equity (44% of FY14 target), recycled into further CLP long WALE industrial investment
CQR completed a €174.5m sale of its Polish portfolio and redeployed $60m net equity proceeds into the acquisition of Southgate Plaza Shopping Centre acquired on a 7.5% yield
$1.4bn of new and refinanced debt since 30 June 2013

Charter Hall Group Investor Day 2013

Charter Hall Group

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$331m of Gross Equity in Funds Secured FY14 to date

$77m Direct Industrial Fund No.2 Completed equity raise

$16m Charter Hall Retail REIT DRP

$6m Core Plus Office Fund IRP

$31m $103m Core Plus Charter Hall Office Trust Industrial Fund Acquisition of remaining Completed equity raise 50% No.1 Martin Place

$98m Core Logistics Partnership Additional equity commitment

Notes:

Represents equity invested and not undrawn equity commitments
Excludes $14m raised through the CHC DRP

Charter Hall Group Investor Day 2013

Charter Hall Group

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What next?

Positioned for growth 2014+

Strategy FY14 objectives • Continue to achieve the investment objectives of our investors
~~ACCESS~~ • Enhance return on equity
Source equity to invest into core real estate sectors targeting growth in the Australian FUM platform of 6-10% pa
Realise a further $112m of capital in property and development investments and redeploy over the next 18 months
Drive further growth in property investment portfolio earnings and capital value
Diversify sources of debt funding for the managed funds platform
Continue to capitalise on a scalable operating platform to service FUM growth
Reweight the investment portfolio by increasing the proportion of retail and industrial investments

Charter Hall Group Investor Day 2013

Charter Hall Group

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Solid Earnings Growth Expected in FY14

Charter Hall is well positioned to continue to capitalise on our ability to access, deploy, manage and co-invest across core property sectors of office, retail and industrial

We confirm guidance provided to the market in August 2013 and barring unexpected events, continue to forecast:

Growth in FY14 operating earnings per security of approximately 7%[1]
The distribution payout ratio is expected to be between 85% and 95% of operating earnings per security[2]

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This growth guidance applies to both the existing operating earnings measure and amended operating earnings (including security based benefit expense)
Payout ratio has increased from 80-90% in FY13, due to a change in accounting for security based benefit expense effective FY14. Expected FY14 operating cash flow and distributions are not impacted by this non-cash item.

Charter Hall Group Investor Day 2013

Questions?

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Our View of Real Estate Markets Around the Nation Chris Freeman, Research Manager

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Research

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Research at Charter Hall

Charter Pack and promotion

Detailed research reports for use internally and major investment partners
Viewed as fund management IP, so rarely publicly distribute or actively promote detailed forecasts and analysis

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Charter Hall Group Investor Day 2013

Capital Fundamentals

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Research

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Capital Fundamentals

Fixed interest rates and property yield spread

Secure property appears very attractive in the current interest rate environment
Upward movements in bond yields likely to see a reallocation away from fixed interest. AMP’s October Global Investor Survey showed 23% of respondents reducing Government Bond Exposure, with a corresponding 23% increasing direct property allocations

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Source: JLL, RBA, Westpac, Charter Hall Research

Charter Hall Group Investor Day 2013

Research

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Capital Fundamentals Significant reallocating to property is planned

Figure 3. Net increase or decrease in allocations expected in next quarter

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Bonds
Property
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Net percentage of survey respondents to increase or decrease allocations to each asset category.

Source: AMP Global Investment Survey, October 2013 Charter Hall Group Investor Day 2013

2020

Research

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Capital Fundamentals

A-REIT share price/NTA history by type

This reallocation is occurring at a time when ‘rent-collecting’ A-REIT’s have broadly grown to be at (or above) NTA
Thereby effectively transitioning from being net sellers to buyers of assets

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Source: Bloomberg, Charter Hall Research

Charter Hall Group Investor Day 2013

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Research

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Capital Fundamentals

Australian superannuation growth

With the strong recovery of the equities market the total assets of Australian Superannuation Funds exceeded Australian GDP for the first time since 2007
In FY13 superannuation assets rose by $217bn, while nominal GDP grew by $37bn. A clear relationship to property pricing is evident as funds are reallocated toward or away from alternate assets

Australian GDP vs Total Superannuation Assets

Growth in Super Assets (over GDP) vs Prime Yields

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Source: ABS, APRA, JLL, Charter Hall Research

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Charter Hall Group Investor Day 2013

Office Market

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Research

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Office Markets

Employment and vacancy

But while capital drivers are strong, full time employment growth has slowed notably from mid-2011
This corresponds to rising vacancy in office markets over the past two years

Employment Growth by Type & Population Ratio

Major CBD Vacancy Rates

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Rising vacancy
Slowing growth
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Source: ABS, JLL, Charter Hall Research

Charter Hall Group Investor Day 2013

Research

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Office Markets

Major CBD absorption vs. ASX 200

However, the performance of the equities market provides a strong leading indicator that tenant demand is likely to recover, with the caveat that this has largely been driven by growth in multiples

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Source: JLL/IRESS/Charter Hall Research

Charter Hall Group Investor Day 2013

Research

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Office Markets

Corporate profits and professional job advertisements

This is reinforced by improved corporate profitability and a recent rise in professional job advertisements
Real corporate profits have started to recover and major banks saw revenues rise 5.8% in FY13. In line with the financials recovery, Sydney and Melbourne posted net absorption of 34,200sqm and 23,268sqm in Q3 respectively
Albeit off a low base, professional job advertisements have seen gains in the past three months. Sydney has seen consecutive gains in the past five months, which is the strongest consecutive improvement since 2010. Melbourne has seen four months of gains which is reflected by annual net absorption moving into slightly positive territory

Real Australian Corporate Profits vs Net Absorption

Professional Job Advertisements vs Net Absorption

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Source: JLL / ABS / APRA / DOE / Charter Hall Research

Charter Hall Group Investor Day 2013

Research

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Office Markets

Department of Employment forecasts

5 year employment growth expectations from the Department of Employment still favour Perth and Brisbane
However these markets are likely to see the greatest supply impact over the medium term

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Source: DOE / Charter Hall Research

Charter Hall Group Investor Day 2013

Research

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Office Markets

Committed and uncommitted supply

Upcoming supply is significant in all markets moving forward
Having seen significant levels of stock come online in 2013, Melbourne now has the lowest relative level of supply under construction

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Source: JLL / Charter Hall Research

Charter Hall Group Investor Day 2013

Research

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Office Markets

Strategy in action

Acquired Bankwest Place, Perth for $458m in Joint Venture with CPOF and institutional partners
12 year lease to Commonwealth Bank of Australia
Well below market rents
Looks through current cycle
Acquired 9 Castlereagh Street in Sydney for $172.5m in

CPOF

Well below replacement cost
Medium-term income certainty
7.6% yield attractive in current market
Acquired BOQ Building in Brisbane via joint venture

with global partner and CPOF

Under construction, due late 2014
55% pre-committed by Bank of Queensland for 12 years
Rapidly evolving precinct with good amenity
Only 5,000sqm+ tenancy option completing in 2014

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Bankwest Place, WA

9 Castlereagh St, NSW

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Charter Hall Group Investor Day 2013 29

BOQ Building, Brisbane, Qld

Retail Market

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Research

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Retail Market

Non discretionary sectors continue to outperform

Retail turnover remains below trend, with non-discretionary expenditure significantly outperforming
Department stores causing a significant drag on overall growth numbers

Rolling Annual Retail Turnover by Type

20yr CPI Index by Category

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Source: ABS, Charter Hall Research

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Research

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Retail Market

Centre composition and exposure to food retailing by GLA

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15.3%
29.6%
59.7%
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Source: Urbis, Charter Hall Research

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Research33

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Retail Market

Retail leasing spreads and occupancy costs

Looking at leasing spreads of listed A-REITs shows that sub-regional and neighbourhood centre owners are still seeing positive leasing spreads, while tougher retail conditions are being reflected in centers focused on discretionary trade
The substantially lower occupancy costs for neighbourhood and sub-regional centres further reinforces this asset class as Charter Hall’s preferred exposure

Major A-REIT Releasing Spreads

Average Occupancy Costs by Centre Type

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Source: ASX, Urbis, Charter Hall Research

Charter Hall Group Investor Day 2013

Research

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Retail Property Sector

Retail turnover growth by category

Consumer confidence and retail turnover are closely correlated, but a discrepancy has been evident in the past two years. The rise in confidence evident since late 2011 has thus far not translated into retail sales, but there is likely to be a correction
Household savings rates are also elevated, and while much of this is due to deleveraging, a consumer’s incentive to save beyond this is reduced by low returns on cash at present. Given effective deleveraging from housing price gains, savings ratios may decline over coming years

Consumer Confidence and Retail Turnover

Household Savings vs. 3yr Term Deposit Rate

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Source: ABS, RBA, Westpac, Charter Hall Research

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Research

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Retail Market

Relative yields in retail sector

Yield recompression appears highly likely, with neighbourhood and sub-regional centres trading above long run averages

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Neighbourhood

Avg: 8.03% Peak: 6.64% Now: 8.51%

Sub-Regional

Avg: 7.45% Peak: 6.32% Now: 7.66%

Regional:

Avg: 6.31% Peak: 5.58% Now: 6.10%

Source: JLL, RBA, Westpac, Charter Hall Research

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Research

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Retail Market

Relative yields in retail sector

Neighbourhood and sub-regional assets trading significantly higher than the peak yield witnessed in 2007
Looking at the average spread relative to regional centres shows a yield disparity not evident since 2001. When this is put into context of the current interest rate environment, the yield spread represents an excess return almost 50% that of a 3 year term deposit at present – showing a compelling case for quality neighbourhood and sub-regional centres.

Relative Yield Movements vs. 2007 Peak

Relative Spread to Regional Yields

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Source: JLL, RBA, Charter Hall Research

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Research

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Retail Market

Strategy in action

Acquired Bateau Bay Square in NSW for $164m with global partner
Supermarket orientated, sub-regional centre
CQR raised $119m to buy three neighbourhood centres
Tamworth, Dubbo and Lake Macquarie
9.6% average yield across portfolio, non-discretionary focussed
CQR acquired Southgate Plaza in South Australia for $60m
Recycled European capital
7.5% year one yield with 8 year WALE
Low occupancy cost for tenants
Established $239m BP Fund in partnership with Domestic Superannuation Partner
Long term leases with fixed growth
Exceptionally strong tenant covenant
Hardware and garden retailing performing strongly, up 3.9% over year to September. Household Goods (Ex H&G) down - 0.2%

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Bateau Bay Square, NSW

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Bunnings Warehouse, BP Portfolio

Charter Hall Group Investor Day 2013

Industrial Market

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Research39

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Industrial Market

Broad supply and demand

Industrial property’s demand and supply profile suggests it is arguably the best placed asset class
Demand for space in 2012 was the highest since 2005, with real development approvals 18% below the 10 year average and 43% below the 2007/8 peak

Major Industrial Leasing Activity

Real Value of Factory & Warehouse DA’s ($m)

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Source: JLL, ABS, Charter Hall Research

Charter Hall Group Investor Day 2013

Research

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Industrial Market

Gross corporate profits – manufacturing vs. logistics

Manufacturing’s decline is shown in gross corporate profit levels, a clear drag on industrial tenant demand
Logistics, fuelled by internet retailing and the high $AUD has seen profits rise by 55% in five years

Source: ABS, Charter Hall Research

Charter Hall Group Investor Day 2013

Research41

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Industrial Market

Supply and demand 2013

Thus far over 60% of major leases tracked have been for new premises via either pre-lease or design and construction agreements. Traditional leases of existing stock represents 35% of activity, with the majority of demand for prime grade assets
In the major capitals 743,672sqm of industrial supply has been added thus far in 2013 according to JLL data. Of this, 76% has been committed prior to completion. There is presently just under 1.26 million sqm under construction, which also has a commitment rate slightly above 76%

2013 Leasing Activity by Type and City

Supply Under Construction by City

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500,000 D&C Pre‐lease Occupier Leased Sub‐Lease
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Sydney Melbourne Brisbane Perth Adelaide
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Source: Charter Hall analysis of JLL Data

Charter Hall Group Investor Day 2013

Research 42 Industrial Market

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Supply under construction by city and precinct

Toll Ipec Super Retail Group Bunnings Distribution Blue Star Linfox

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Source: Charter Hall analysis of JLL Data

Charter Hall Group Investor Day 2013

Research

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Industrial Market

Vacancy by grade yield spreads

There is a greater quantum of secondary stock available for lease, with tenants clearly favouring prime assets
While yield spreads to secondary assets are very attractive, the risk profile is substantially heightened due to higher vacancy levels and lower take-up

Prime and Secondary Vacancy Levels

Industrial Yields vs Fixed Interest

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Source: Knight Frank, JLL, RBA, Westpac, Charter Hall Research

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44Research Industrial Market

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Composition of returns

The industrial sector has marginally outperformed over the longer term, with a lower level of volatility than broader property
However, this performance may be understated as IPD’s basket is significantly overweight in Sydney, the softest performing market, with almost double the weighting warranted relative to economic demand

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Institutional Property Weightings vs State Final Demand Average Returns & Index Weighting
(Sep06 – Sep13)
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Source: IPD, ABS, Charter Hall Research

Charter Hall Group Investor Day 2013

Research

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Industrial Market

Strategy in action

Retail funds closed $211 million DIF1 Portfolio
DIF1 lease expiry profile 12.1 years
Closed $120m equity raising for DIF2 oversubscribed
DIF2 targeting 10+ year WALE
Current assets possess a 13.0 year lease expiry profile
Launched Core Logistics Partnership (CLP)
In conjunction with key capital partners
$400m capacity with $352m of investment committed to date
Core Plus Industrial Fund (CPIF)
Strongly performing industrial fund over 1,3 & 5 years
Growing to circa $900m of assets once fully invested
Acquired K-Mart Canning Vale for $70.5m on 10.8% yield in growth area with low speculative supply
165,000sqm of GLA land bank, $225m end value

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Australia Post Distribution Centre, Melbourne, Vic.

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Coles Myer Logistics Centre, Perth, WA

Charter Hall Group Investor Day 2013 45b

Questions?

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Wholesale Pooled – Growth positioning and performance

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Wholesale Pooled Funds

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Wholesale Pooled Funds FUM contribution

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Charter Hall manages a $10.3bn total property portfolio
NO. OF PROPERTIES NO. OF TENANTS LETTABLE AREA (SQM) TOTAL ASSETS ($M) FY13 GROSS INCOME ($M)
200 2,968 2.8m 10,323 909
FUM Equity Sources CHC Balance Sheet Co-Investment
($10.3 billion as at June 2013) ($603 million as at June 2013)
Listed
Retail Investor Funds 17.1%
$1.7bn (16%)
Listed
Wholesale
$2.2bn (21%)
Partnerships
37.2%
Direct
9.1%
Retail Funds and
Wholesale Syndicates
Pooled Wholesale 8.2%
$2.7bn (26%) Partnerships and
Mandates
$3.7bn (37%) Wholesale
Pooled Funds
28.4%
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Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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Wholesale Pooled Funds

Key characteristics

Investment mandate for Core Plus Office Fund (CPOF) and Core Plus Industrial Fund (CPIF) focussed principally on core type returns with ability to undertake projects to enhance value
Value created through enhancement works is fully captured through NTA uplift
CHC maintains co-investment stake for alignment of interest with unit holders
Key decision making recommendations are driven by the Manager for approval by a separate Investment Committee (comprising 2 independent members and 2 CHC executives)
Unlisted pooled funds remain a cost effective investment product for institutions that have a preference for the Manager to make recommendations on key investment and operational decisions

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPOF and CPIF FUM

Growth in CPOF and CPIF FUM ($m)

Cumulative CPOF and CPIF Equity Commitments

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2500m
$2,360
2000m $2,100
$1,826 $1,900
$1,764
1500m
$1,560
1000m
$919
500m
$386
0m
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
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1800m
1600m
$1,589
1400m
$1,407
1200m
$1,204
1000m
$1,085 $1,030
$975 $975
800m
600m
400m $500
200m
0m
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
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The Wholesale Pooled Funds business has grown FUM from $386m in 2006 to $2.4 billion as at today
Charter Hall’s Core Plus Office and Industrial Funds have received over $1.5 billion in equity commitments from major institutional and pension funds investors since 2006
This FUM growth in wholesale pooled funds reflects more than 14% pa over the last 3 years and more than 29% pa since 2006

Analysis focuses purely on CPOF and CPIF wholesale pooled funds and excludes other present or historic wholesale funds managed by the Charter Hall Group.

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPOF and CPIF FUM

Charter Hall Co-Investment Stake (CPOF and CPIF) (% of committed equity)

Number of assets under management (CPOF and CPIF)

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25%
40
23% 24% 23%
35
36 20%
30 31 19% 19%
29 30 30 30 18%
25 15%
15%
20
12%
10%
15 18
10
5%
5
1
0 0%
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
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The wholesale pooled fund business is now responsible for the management of 36 investment grade office and industrial assets across the major metropolitan markets of Australia
Charter Hall typically seeds the core wholesale funds at inception and then retains its co-investment (in dollar terms)
As the fund’s have grown since inception the weighted co-investment stake in CPOF and CPIF has reduced from 23% in 2006 to 12% in 2013

Analysis based on FUM of CPOF and CPIF. Excludes assets owned or historically delivered by CHOF4 and CHOF5.

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPOF and CPIF occupancy

CPOF and CPIF Occupancy Performance

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100%
100% 100%
100%
98%
98% 98%
96% 97% 97%
96%
94%
92%
90%
88%
86%
84%
82%
80%
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
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The Wholesale Pooled Fund team in conjunction with Charter Hall’s specialist Asset Management and Property Management teams have focused acutely on tenant retention through the market cycle
Both CPOF and CPIF retain market leading occupancy ratios, relative to the market overall and relative to wholesale peers

Occupancy represents core vacancy which excludes intentional asset vacancies due to planned asset redevelopment within CPOF.

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPOF

$ 1.8 bn office portfolio

Portfolio characteristics Key metrics	Portfolio characteristics Key metrics
Gross property assets	$1.82 billion
Total debt	$825 million
Gearing (look through)	45%
Number of assets	15
Occupancy1	97%
Weighted average lease expiry1	5.1 years
CBD assets1	92%
Prime grade assets	89%
Weighted average cap rate	7.8%
Weighted average rent review (next 12 months)	4.0%
Rent reviews (FY13)	81% fixed, 18% CPI, 1% market
Charter Hall co-investment	$115m / 12%

Core assets as at 30 September 2013, adjusted for development projects during FY14

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPIF

Outperformance

CPOF has outperformed the IPD/Mercer Wholesale Property Funds Index (total office funds) over 1, 3 and 5 year periods to 30 June 2013

CPOF Performance to June 2013

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9.9%
9.1%
8.8% 8.7%
7.8% 7.9%
2.7%
1.3% 1.2% 1.4%
0.9% 1.3%
12 Months(%) 24 Months (%pa) 36 Months (%pa) 60 Months (%pa)
Charter Hall CPOF Average Wholesale Office Fund Excess Over Peers
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CPOF’s performance relative to peers, despite the “headwinds” it faced during the GFC and the transaction costs involved in acquiring $1.8bn of real estate assets, provides evidence of the Manager adding value for unitholders

Source: IPD/Mercer Wholesale Pooled Property Index (total funds – office). Stamp duty amortised over 12 months.

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPOF

Acquisition and leasing activity

Major Activity over 18 months

11 Exhibition Street, Melbourne Re-leased 11,748sqm of space to BUPA 10 year term Secured 18 months ahead of expiry

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9 Castlereagh St, Sydney $172m 21,000sqm

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Bank West Place, Perth (33%) $153m ($458m for 100%) 61,565sqm

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BOQ, Brisbane (50%) Completion value $87.8m ($175.6m for 100%) 22,550sqm

May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPOF

Enhancement strategy

Key events during FY13

Planning consent obtained for a new building at 333 George St, Sydney and a significant expansion and upgrade of 570 Bourke St, Melbourne
Combined both projects are forecast to generate 5% NTA accretion and improve overall quality of portfolio

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333 George Street, Sydney, NSW

570 Bourke Street, Melbourne, Vic.

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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Enhancing Value from Core Assets

570 Bourke Street, Melbourne

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CPOF acquired 50% for $75m in June 2008 at a 7.0% cap rate
The balance of the asset was purchased from the joint owner for $76.5m in September 2010 at 8.0% cap rate
The asset has now been re-valued to $178 million ($151m acquisition price) as at 30 June 2013 at 7.75% cap rate
Development team has prepared a redevelopment plan to add 15,800sqm of NLA (increases total NLA to 51,100sqm)
Project comprises floor plate expansion of lower 10 levels (1,100sqm to 2,700sqm) and renewal of ground floor lobby and retail spaces
A-Grade asset in established CBD location offering large podium floors (similar to Docklands or suburban locations)
State of the art end of trip facilities and 4.5 star NABERS rating

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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Enhancing Value from Core Assets

570 Bourke Street, Melbourne

Highly accretive returns using available floor space potential at effectively no land cost
Returns enhanced by value uplift of the existing asset due to “repositioning” effect of new podium and lobby renewal
Development Consent has been achieved and preferred builder is firming up final costing and delivery strategy
Project remains income producing during works as high rise section of tower will continue to operate
Large floor plate levels (10 x 2,700sqm) can be offered at rents comparable to Docklands precinct

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Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPIF

Review event completed and well supported

CPOF is an open-ended investment vehicle with a long-term investment mandate
A Review Event occurred in 2013 where some unit holders redeemed (or sold) their stake due to changes in their investment strategy
Demand from existing unit holders for additional units was well in excess of redemption demand. No requirement to fund redemptions through asset sales or securing external equity
Primary issue of up to $200 million of new equity is underway with both new and existing investor demand. Additional equity will be used to fund 333 George Street and 570 Bourke Street projects

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPIF

$665m industrial portfolio

Portfolio characteristics Key metrics	Portfolio characteristics Key metrics
Portfolio Value	$665 million
Total net debt	$130 million
Gearing (look-through)	20%
Number of assets	24
Occupancy	99%
Weighted average lease expiry	8.5 years
Core assets	95%
Weighted average cap rate	8.38%
Weighted average fixed rent review (next 12 months)	3.2%
Charter Hall equity co-investment stake	$57m / 11%

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPIF

Outperformance

Outperformed the industrial component of the IPD/Mercer Wholesale Property Funds Index (total funds) over all time periods to 30 June 2013

CPIF Relative Performance to 30 June 13

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9.7%
8.6% 8.5% 8.5%
8.2%
7.8%
2.8%
2.0%
1.1%
0.7%
0.8%
0.3%
12 Months(%) 24 Months (%pa) 36 Months (%pa) 60 Months (%pa)
Charter Hall CPIF Average Wholesale Industrial Fund Excess Over Peers
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Source: IPD/Mercer Wholesale Pooled Property Index (total funds – industrial). Stamp duty ammortised over 12 months.

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPIF

Acquisition and leasing activity

Key events during and post FY13

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80 - 120 Canberra Street, 15 Huntingwood Drive,
Hemmant, Qld Huntingwood, NSW
$13.25m $16.2m
45,000sqm 12,740sqm
2 Bannister Road,
Canning Vale WA
$70.5m
83,250sqm
15 Long Street, 11 Huntingwood Drive,
Smithfield, NSW Huntingwood, NSW
$6.5m
$24m (end value)
5,400sqm
16,500sqm
May
Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13
12
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Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPIF Investment and Acquisition Strategy

Sourcing Assets

Attractive acquisition opportunities for both short and long WALE industrial assets
CPIF aims to offer long portfolio WALE (8.5 years) with targeted long term equity IRR in excess of 11%pa
Focussed on ‘true to label’ industrial offering that capitalises on access to deal flow via :
Charter Hall’s strength in sourcing and executing transactions
Existing and future land banks
CIP sourced pre-leased and land bank opportunities

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Smithfield, Sydney, NSW

Joint ownership opportunities

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPIF Investment and Acquisition Strategy

Land Bank “build-to-hold” Approach

Acquisition of land bank in Brisbane (Berrinba and Willawong) and Sydney (Smithfield) to create product
Development agreement with CIP to source and secure pre-lease commitments. CIP will bear development risk once pre-lease is obtained
CPIF will fund and own the completed asset with margin captured in unrealised NTA uplift
CPIF receives preferred return from the development. CIP receives balance of profit until 100% “catch up” after which any margin is shared equally
CPIF typically targets an equity IRR greater than 15% from land bank projects

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Berrinba, Brisbane, Qld

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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CPIF Investment and Acquisition Strategy Commercial Industrial Properties (CIP) pipeline

Charter Hall’s ownership (50% of CIP) provides visibility into its development pipeline
Typically $400 - $500m of prospective industrial assets under consideration at any point in time
CIP provides a source of pre-committed projects which are purchased at land-level and funded to hold for the long term

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Volkswagen Showroom, Chullora, NSW

Charter Hall Group Investor Day 2013

Wholesale Pooled Funds

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Enhancing Value from Core Assets

18-120 Canberra Street, Brisbane, Qld

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Acquired 4.8ha of freehold land in tightly held Port of Brisbane precinct
Purchase price of $13.25m in July 2012 with an acquisition yield of 6.4% with 6 months to lease expiry
Negotiated new lease (10 years) with existing tenant within eight weeks of settlement
Reversion to market lifted passing yield to 9.5%
Projected 5 year equity IRR in excess of 15% for a core land holding with development upside

Charter Hall Group Investor Day 2013

Wholesale Partnerships Adrian Taylor – Head of Wholesale Partnerships

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Wholesale Partnerships

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Wholesale Partnerships - Background

Wholesale Partnerships Comprise:

Partnerships which typically include two or more capital partners including Charter Hall
Wholesale Mandates which typically have no Charter Hall Co-Investment, however, may include an interest held alongside a Charter Hall managed fund or partnership
$0 to $3.7 billion from FY10

AUM Equity Sources ($10.3 billion as at June 2013)

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CHC Balance Sheet Co-Investment
($10.3 billion as at June 2013)
($603 million as at June 2013)
Retail Investor
Listed
Funds
17.1%
$1.7bn (16%) Listed
Wholesale
$2.2bn (21%)
Partnerships
37.2%
Direct
9.1%
Wholesale Retail Funds and
Syndicates
Pooled
Wholesale 8.2%
$2.7bn (26%)
Partnerships
and Mandates
Wholesale Pooled
$3.7bn (37%)
Funds
28.4%
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Charter Hall Group Investor Day 2013

Wholesale Partnerships

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Wholesale Partnerships - Scope

Some Partnership investors also invest within our pooled funds
Partnership formation allows access to specific sector exposures (office/retail/logistics) with:
ability to reflect investors individual risk appetites
ability to tailor to varying debt preferences
ability to allow investors greater say in fund structure and decisions through a seat on an Investment Committee that makes key decisions

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Brisbane Square, QLD

Charter Hall Group Investor Day 2013

Wholesale Partnerships

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Attracting investors and capturing demand

What investors want:

Access to opportunities
To leverage Charter Hall’s skills/resources and relationships
To be involved in establishing structure around their specific needs
To obtain high quality exposures to Australian investment opportunities
Direct and regular access to management
Alignment of interests with the manager
To regularly review opportunities to maximise returns

Capturing demand:

Investors will sometimes introduce their peers into a fund
Building loyalty from existing investors
Cultivating relationships with new partners
Recycling capital into new opportunities
Show partners visibility into the opportunity pipeline

Charter Hall Group Investor Day 2013

Wholesale Partnerships

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Partnerships Investment Timeline

Fund creation and major acquisitions over 18 months

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Value
Charter Hall Office Trust (CHOT)
17 assets/ $2,031m
Bank West Place
$458m
Keperra Square
Bunnings (BP Fund) 1 asset/ $63m
10 assets/ $239m
Core Logistics
Bateau Bay Square(RP2) Partnerships (CLP)
1 asset/ $164m
6 assets/ $231m
Bank of Queensland
1 asset/ $176m
(on completion)
50% No1 Martin
Place (CHOT) Somerton (CLP)
1 asset/ $220m 1 asset/ $121m
May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13
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Office

Retail Industrial

Charter Hall Group Investor Day 2013

Wholesale Partnerships

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Partnership Summary

Since August 2012 (excludes CHOT), the Partnership platform has invested in $1.5 billion of Office, Retail and Industrial assets. On average, these assets are less than 5 years old, have a 9 year WALE, high occupancy and have an average passing yield of 7.6%

passing yield of 7.6%	passing yield of 7.6%
Fund Sector No of Assets NLA (sqm) Indep. Valuation ($A'm) Avg Building Age WALE (by income) Cap Rate (%) Occupancy (%) No of Tenants
Charter Hall Office Trust Office 18 360,548 2,241 15 4.2 7.6 95.8 199
Riverside Centre, SA Office 1 23,044 76 24 7.2 8.5 100.0 3
Bateau Bay Square1 Retail 1 28,277 164 13 7.1 8.0 99.2 120
BP Fund (Bunnings) Retail 10 124,243 239 3 11.1 7.6 100.0 10
Core Logistics Partnership Industrial 7 300,064 352 1 9.3 7.9 91.4 14
Bank of Queensland2 Office	1 23,547 139 0 N/A 8.0 N/A N/A
Bank West Pl & Raine Sq Complex2 Office	1 61,564 462 2 9 7.5 96.5 61
Brisbane Square2 Office	1 59,108 410 7 8.4 7.0 99.5 17
Keperra Square1 Retail	1 15,387 63 3 8.5 7.5 98.0 57
Weighted Total	41 995,782 4,146 10 6.3 7.6 96.4 128
Weighted Total (Ex-CHOT)	23 635,234 1,905 5 9.0 7.6 97.1 37

1 WALE - based on Major tenants

2 Reflected at 100% ownership, total includes $360m held in CPOF

Charter Hall Group Investor Day 2013

Wholesale Partnerships

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Organic growth and alignment

Fund	Sector	CHC Co- invest ($A'm)	CHC Co- invest (%)	Indep. Valuation ($A'm)
Charter Hall Office Trust	Office	174.9	14.5%	2,241
Riverside Centre, SA	Office	Nil	Nil	76
Bateau Bay Square	Retail	17.6	20.0%	164
BP Fund (Bunnings)	Retail	14.5	13.0%	239
Core Logistics Partnership	Industrial	58.6	16.8%	352
Bank of Queensland1	Office	Nil	Nil	139
Bank West Pl & Raine Sq Complex1	Office	Nil	Nil	462
Brisbane Square1	Office	Nil	Nil	410
Keperra Square	Retail	22.8	35.6%	63
Total/ Average		288.4	15.4%2	4,146

1 Reflected at 100% ownership

2 Weighted average

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100 Skyring Terrace (Bank of Queensland) 73 under construction (30 Oct 2013)

Charter Hall Group Investor Day 2013

Wholesale Partnerships

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FY13 Growth Analysis – Diversification in line with CHC strategy

Charter Hall views everyday-needs retailing and logistics based industrial assets as well positioned to deliver stable income through the next cycle

By Sector

By State

Charter Hall Group Investor Day 2013

Wholesale Partnerships

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FY13 Growth Analysis – Strength of Tenants

By Gross Income

91% of portfolio income derived from Government or Investment Grade or equivalent tenants

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Top 10 Tenants
25% Wesfarmers (incl subsidaries)
16% Metcash
13% Bankwest
12% Bank of Queensland
8% Woolworths
8% Brisbane City Council
6% Suncorp
5% Fastline
5% Amcor
3% Visy
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Tenant Grade

*Bank of Queensland – passing gross income ‘as if complete’

Charter Hall Group Investor Day 2013

Wholesale Partnerships

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FY13 Growth Analysis - Lease expiry profile

By Gross Income

Strong WALE of 9.0 years

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70%
60%
50%
40%
30%
20%
10%
0%
Vacant FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023+
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Charter Hall Group Investor Day 2013

Wholesale Partnerships

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Wholesale Mandates – Case Study

Bankwest Place and Raine Square, Perth

In June 2013, a domestic super fund and a global institutional investor, in partnership with Core Plus Office Fund (CPOF), acquired the $458m Bankwest Place Complex in Perth

Investment considerations:

New, long leased asset with minimal capex. acquired for $7,500sqm
Office 45,000sqm with a 12 year lease to BankWest (Commonwealth Bank subsidiary)
Significantly below market rent at $406sqm net rent with 4% fixed reviews p.a. and market review each 4 years (10% cap)
Retail – 9,831sqm including a 15 year lease to Coles supermarket
Opportunity to leverage Charter Hall’s local retail expertise to re-mix the underperforming speciality areas
Natural valuation growth from rent reversions
Significantly improving precinct (Perth City Link / King’s Square / One40 William St / transport hub including direct rail access etc)

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Bankwest Place, Perth WA

Charter Hall Group Investor Day 2013

Questions?

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Retail (Direct) Investor Funds Capitalising on our position and leveraging off growth in SMSFs Richard Stacker, Head of Charter Hall Direct Property

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Success and competitive advantage of the Direct model

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Direct FUM Contribution

Charter Hall manages a $10.3bn total property portfolio

NO. OF PROPERTIES NO. OF TENANTS LETTABLE AREA (SQM) TOTAL ASSETS ($M) FY13 GROSS INCOME ($M) 200 2,968 2.8m 10,323[1] 909

FUM Equity Sources ($10.3 billion as at June 2013)

CHC Balance Sheet Co-Investment ($603 million as at June 2013)

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Retail Investor Listed
Funds 17.1%
$1.7bn (16%) Listed
$2.2bn (21%) Wholesale
Partnerships
37.2%
Direct
9.1%
Retail Funds
Wholesale Pooled and Syndicates
Wholesale 8.2%
$2.7bn (26%)
Partnerships and
Mandates
$3.7bn (37%)
Wholesale Pooled
Funds
28.4%
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Charter Hall Investor Day Presentation November 2013

Direct Property

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Direct Growth in FUM

Direct Property business has seen growth of 47% in FUM in three years

Mixture of organic growth and acquisition of other management rights
Established new funds and syndicates (DIF, DIF2, CHIF7 and CHIF8)
Acquired management rights of PFA
FUM increase in 2012/13 in spite of smaller CHIF syndication series 2-6 (c$110m) rolling off
In 2013/14 some larger funds have or will soon roll off (c$400m - 1MPT, DPF, CHUF)

Growth in CH Direct FUM

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

$m
47% Increase in FUM to June 2013
$2,000
$1,800
$1,600
$1,670m
$1,400 $1,540m $1,516m
$1,478m
$1,200
$1,000 $1,140m
CHC $400m
$800
$600
Macquarie
$400 $740m
$200
$0
March 2010 FY2010 FY2011 FY2012 FY2013
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March 2010 (Macquarie Direct acquired)

Charter Hall Investor Day Presentation November 2013

Direct Property

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#1 Ranked in Sector and Growing Market Share

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CHC % of Unlisted Retail Sector
Direct have significantly increased market share 16%
and ranking over the past four years 14%
14%
12%
• Market share increased from 2% to 14% of the 10%
10%
unlisted retail sector
8% 9%
6%
• Ranking improved from outside Top 10 to Number 1 6%
4%
• Awards won by Direct recognising high quality of Awards won by Direct recognising high quality of 2%
product offering, including awards in the 2%
0%
increasingly important SMSF space 2009 2010 2011 2012 2013
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Awards won by Direct recognising high quality of Awards won by Direct recognising high quality of product offering, including awards in the increasingly important SMSF space

Unlisted Retail Fund Managers – CHC Ranking

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

10
10+
9
8
7
6
5
5
4
3
3
2
2
1
1
0
2009 2010 2011 2012 2013
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Source: PIR Survey

Charter Hall Investor Day Presentation November 2013

Direct Property

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Direct’s Competitive Advantage

Direct retain various competitive advantages in the retail investor funds market, including:

Institutional Manager regarded highly compared to non institutional peers
Demise, exit and sale of many previous competitors
Long established network of financial planning firms, private banks and HNW’s as clients
High quality product
Funds have the strongest research ratings in the industry
16 year track-record of outperformance of syndications
Clear fund exits – sale of assets at right time of the asset life/cycle
Brand has become widely known and acknowledged
Accessing ongoing growth in SMSF (both advised and nonadvised)

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202 Pier Street, Perth (WorkZone Trust)

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Australia Post Distribution Centre, Sydney (Direct Industrial Fund No.1)

Charter Hall Investor Day Presentation November 2013

Direct Property

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Direct’s Growth in Revenue

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Revenue (excluding CHC co-investments) has grown 96% over the past two years whilst returning 65% to Charter Hall

Increased market share and new funds/fee structure has translated to significant growth in Charter Hall transaction and annuity revenue
Capital light model being employed
Recycling Charter Hall capital whilst increasing revenue and FUM. Charter Hall capital being used to initially underwrite new funds/syndicates

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Growth in Charter Hall Direct Revenue
$m
(with and without co-investment income)
$20 $18.9m
$18
$15.3m
$16 $14.7m
$14 $12.5m
$12 $10.7m
$10
$7.8m
$8
37.2% 43.0%
$6 Increase Increase
$4
$2
$0
FY2011 FY2012 FY2013
Revenue (Incl. Co-Investment Income) Revenue (Excl. Co-Investment Income)
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New fund/syndicate model significantly increasing Charter Hall return on equity employed and margins in unlisted retail business
$m
$160 $140 $120 $100 $80 $60 $40 $20 $0

CHC Capital Invested

Capital increasing FUM 47%

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$139m
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$115m
$24m capital
returned
$49m
$66m capital
returned
30-Jun-12 30-Jun-13
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Charter Hall Investor Day Presentation November 2013

30-Jun-11

Direct Property

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Direct Business Model

Direct model is focused on growth in FUM from:

Single/multiple property syndications (>$50m)
Unlisted retail funds diversified by asset and geography (~$200m)
Sector specific (industrial, office, retail)
Acquisition of unlisted management rights e.g. PFA
Wind down of funds/syndicates at maturity and investors recycling into new investment opportunities

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130 Stirling Street, Perth (130 Stirling Street Trust)

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Civic Tower, Sydney (PFA Diversified Property Trust)

Charter Hall Investor Day Presentation November 2013

Direct Property

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Direct Product Asset Targets

Fund and syndicate style assets targeted

Criteria	Office	Retail	Industrial
$ size	$50m+	$10-$30m	$10-50m
Property Type	B+ above	Neighbourhood centres,	Prime grade
		Hardware
Location	CBD and fringes	Flexible	Near established
			precincts
Tenant	Brand names,	Brand anchors	Investment grade
	multi-tenanted	Wesfarmers &
		Woolworths
WALE	Single Tenant >7yrs	5yrs	10yrs+
	Multi-tenanted >4-5yrs
Occupancy	90-95%	95%+	100%
Development (fund through)		Yes
Gearing		45% - 50%
NTA - Fund level (structure)		>90 cents
Yield required on equity		7.5%. Year 1 & average
		over fund life >8%

Charter Hall Investor Day Presentation November 2013

Direct Property

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Direct Product Structure

Syndicate vs fund

Different characteristics to consider (sector, asset quality, size and risk) in developing product as well as understanding appetite and design/distribute product that meets investor needs
Refined product suite (legacy, current and future) and replicate success of recent products
Refresh value proposition and distribution sources, while remaining relevant to market
Wholesale and retail offerings

Characteristics	Syndicate	Fund
	e.g. WorkZone Trust	e.g. Direct Industrial Fund No.1
Sector	Office	Industrial
Asset quality	A-grade	Prime grade
WALE	12 years	13 years (mandate >10 years)
Size	1 asset valued at ~$120m	Portfolio of 7 assets valued at ~$210m
Gearing	45%	45%
Investment term	5 years	7 years (includes 2 year investment period)
Distribution yield	9%+ yield Year 1	8%+ yield Year 1

Charter Hall Investor Day Presentation November 2013

Direct Property

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Direct Fee Structure – Syndication and Fund

Type of fee WorkZone syndication	Direct Industrial Fund No.1
Fund size (asset value) $124.5m Base management fee 0.50% - 0.60% pa of GAV Transaction fee (origination fee) 1.80% - 2.30% of purchase price Disposal fee 1.00% - 1.50% of gross sale price Debt fee 0.4% of debt facility Performance fee 15% of the outperformance of the Trust over an IRR of 10% pa	$210.4m 0.60% pa of GAV 2.00% of purchase price 1.00% - 1.25% of gross sale price 0.4% of debt facility 15% of the outperformance of the Trust over an IRR of 10% pa

Charter Hall Investor Day Presentation November 2013

Direct Property

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Direct fund and syndicate performance

Direct’s ongoing funds and historical syndicates have performed strongly over the past 12 months and also over the long term

Products continue to provide strong annual returns to investors
DIF2 – 2013 start date and in investment phase (unit price fixed)
PFA – performance reflects revaluations of properties after taking over as RE in Aug 2012 (expected from DD prior to purchase)
Syndication performance over long term is very strong
Strong performance is seeing investors recycle on maturity of syndications capital into new funds

Note: Dates used on charts represents fund(s)/syndicate(s) inception, relaunch or acquisition.

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

Equity
IRR (%) Fund Performance
12% (12 months to 30 September 2013)
10%
10.50%
8%
8.60%
8%
6%
4%
2%
0%
-2%
-4%
-4%
-6%
CHDPF (Ordinary) DIF1 DIF2 PFA
(2010) (2010) (2012) (2012)
Equity Syndicate Performance
IRR (%)
30% (since inception to 30 September 2013)
25% 26.50%
20%
15%
14.80%
12.60% 12.60%
10% 11.30%
10.60% 10.10%
7.6%
5%
0%
130SS 144SS 1MPT CHIF 2 CHIF 3 CHIF 4 CHIF 5 CHIF 6
(2010) (2012) ( ) (1998) (1999) (2000) (2001) (2004) (Foundation
inc offer)
(2002)
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Charter Hall Investor Day Presentation November 2013

Growth in SMSF’s and Direct’s Approach to Accessing this Sector

Direct Property

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Continuing growth in SMSFs

Total Superannuation Growth in Past 5 Years

SMSFs sector continues to represent the largest growing segment of the $1.62 trillion super industry

Size of the superannuation industry rose by 15.5% in 12 months to June 2013 to $1.62 trillion
In the past five years SMSF’s represented 37.4% of the total growth in Australia’s superannuation
Total assets in SMSF’s now total $505 billion, showing a
16.6% compound growth rate over the past 10 years

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Total number of SMSFs in Australia is now 509,362, a 7% increase in 12 months to 30 June 2013

Growth in SMSF Assets ($b)

Sector is projected to continue to grow with 650 new funds registered each week
~$986k is average fund size

Source: Australian Prudential Regulation Authority (APRA)

Charter Hall Investor Day Presentation November 2013

Direct Property

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Profiling of SMSFs

Core Data research

Key reasons for moving to a SMSF structure

Core Data study captured the multiple perspectives on service provisions to SMSFs (trustees, financial planners and accountants)

1400 responses, including SMSF members (50%), accountants (25%) and financial planners (25%)
Strong correlation with investment knowledge, risk appetite and SMSFs size
Accountants are the top partner of SMSFs (41%) followed by financial planners (24%)
Key reasons for forming a SMSF include greater control, invest in direct assets , better performance, maximise outcomes within super and tax legislation and seeking reduced costs

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

5.8
Greater control over investments 4.3
5.9
3.4
Invest in direct assets (e.g.
2.0
residential property) 1.2
Seeking to deliver better 2.7
performance than existing 2.9
provider 3.4
2.3
To invest in a tailored solution
2.0
which meets my specific needs 1.5
1.4
To maximize outcomes within
2.1
super and tax legislation 3.0
1.4
Seeking reduced cost 2.0
2.8
1.4
Ability to borrow (for property
1.4
investments) 0.3 Financial Planners
0.4 Accountants
SMSF specialist expertise 1.0
0.0 SMSF Trustees
0.4
Estate planning 0.7
0.6
Looking for super solution for 0.3
partner (& potentially children) as 0.7
well as themselves 0.5
0.2
Less complex investment
0.5
structure
0.4
0.2
Other 0.3
0.4
0 2 4 6 8 10
Ranking Score (0-10)
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Charter Hall Investor Day Presentation November 2013

Direct Property

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Planned shifts in SMSF Asset Allocation

Core Data Research

SMSFs were asked about upcoming shifts in asset allocation expected in the next year

Cash and term deposits identified for reductions driven by low interest rates
SMSF trustees indicate growing interest in Australian equities and international equities, while Accountant advised and Financial Planner advised SMSFs are attracted to residential property and non-residential property

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

Decrease Unchanged Increase
Australian equities 4.8 38.4 56.8 Australian equities 16.9 44.9 Australian equities 38.2 11.8 53.7 34.5
International equities 8.9 41.1 International equities 50.0 17.6 59.6 International equities 22.8 3.9 65.5 30.6
Fixed income 33.6 55.5 11.0 Fixed income 20.6 57.4 22.1 Fixed income 11.8 74.4 13.7
Cash and term deposits 58.9 Cash and term deposits 34.2 6.8 30.9 39.7 Cash and term deposits 29.4 32.5 53.2 14.3
Residential property 8.2 49.3 Residential property 42.5 10.3 41.2 Residential property 48.5 2.3 85.1 12.6
Non-residential property 6.2 63.0 Non-residential property 30.8 8.1 52.2 Non-residential property 39.7 2.8 83.8 13.4
Alternatives 13.7 62.3 24.0 Alternatives 16.2 71.3 12.5 Alternatives 3.8 79.3 16.8
Collectibles - Art, cars, etc. 20.5 Collectibles - Art, cars, etc. 77.4 2.1 32.4 Collectibles - Art, cars, etc. 61.0 6.6 5.7 89.8 4.5
0 50 100 0 50 100 0 50 100
% % %
Financial Planners Accountants SMSF Trustees
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Charter Hall Investor Day Presentation November 2013

Direct Property

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Charter Hall Award Winner

Charter Hall 2013 winner of the Self Managed Super Fund Awards - Commercial Property, SMSF Member Category

Charter Hall was the most highly rated provider in Commercial Property from 19 property fund managers/advisers (including listed and unlisted managers)
Research from Core Data showing 82% of SMSFs are seeking information (over a relationship) - given this our distribution and marketing team target professional organisations with specific material for investing in commercial property

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Charter Hall Investor Day Presentation November 2013

Direct Property

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Leveraging SMSF Space

Strategy to target SMSF investors

• Education

Provision of educational tools and information packs
Dedicated section on Charter Hall website, signup for regular e-comms

• Partnerships

With financial planning dealerships/accountants/private banks with SMSF focus
Client sessions that support campaign initiatives and property market updates with SMSF partners

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• Direct communications

Use of current Charter Hall databases (~30,000 retail investors) and follow up with outbound sales calls (new role created)
Survey of SMSF investors to understand where they go to access information and make investment choices

• Advertising and Public Relations

PR campaign across major financial services and investment press
Brand awareness and be recognised as a “thought leader” in sector

Charter Hall Investor Day Presentation November 2013

Direct Property

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Our Distribution Channels

Equity Raise by Product Since January 2010

Direct accesses equity from multiple channels, with new equity averaging $156m pa since January 2010

• Direct consumers

SMSFs
Major, growing segment
~60% of our investor base
Investors with appetite for direct investments, desire for control and transparency

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

700.0m
New Equity flows of Average of $156m
600.0m pa Over 3.5 Years
593.5m
500.0m
400.0m
300.0m
200.0m
225.7m
100.0m 135.0m 120.8m 32.1m 34.0m 40.2m
5.7m
0.0m
DIF2 DIF1 Other PSF 144 SS 130 SS PFA Total
----- End of picture text -----

• Financial advice providers

Large dealerships – dominated by AMP and four banks
Private banks (HNW focus)
Boutiques (non product aligned)

• Wraps

~$20m monthly flow pre GFC (90% of total equity inflow)
Product type has changed post GFC and appetite and approvals from investors using wrap platforms is slowly returning

Approvals by Dealership and Wraps

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

180
160 6
140
120
100
80
149 3
60 5 3 2
40 3
20 49 47 1 53 3 64
27
18 13
0
DIF2 DIF1 144 SS 130 SS 1MPT CHDPF DPF CHUF
(since
Jan
2011)
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Dealerships

Wrap Products

Charter Hall Investor Day Presentation November 2013

Direct Short to medium term growth plans

Direct Property

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2013/14 FUM outlook

$400m roll off of legacy FUM in 2013/14. Replacement by higher margin funds/syndicates including:
WorkZone office syndication $124.5m
DIF2 acquisition capacity of $85m (Assets were $55m in June 2013, $135m at Nov 2013, expected to be fully invested $220m in 2014)
2x new syndicates in due diligence – retail, office (approx. $130m)
DIF3

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

$m Growth in CH Direct FUM
$2,000
$1,800
$1,600 $1,668m $1,700m
$1,400 $1,540m $1,516m
$1,478m
$1,200
$1,000 $1,140m
CHC $400M
$800
$600
Macquarie
$400 $740M
$200
$0
March 2010 FY2010 FY2011 FY2012 FY2013 Sep-14
(Macquarie (forecast
Direct includes new
syndicates not
acquired)
DIF3)
$m CHC Capital Invested
$160
$140
$139m
$120
$100 $115m
$24m capital
$80 returned
$60
$40 $49m
$20 $66m capital
returned $25m
$24m capital
$0 returned 99
30-Jun-11 30-Jun-12 30-Jun-13 30-Jun-14
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Charter Hall Investor Day Presentation November 2013

Direct Property

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Conclusion

Direct are the #1 fund manager in the unlisted retail funds sector
Direct’s business model is capital light and has translated to increased revenue and margins for CHC
Direct will continue to develop its product suite and distribution channels to target the growing SMSF sector
Direct will maintain investment performance to retain/attract capital
Direct will continue to strive to be the #1 brand in the unlisted retail property investment space.

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OneSteel Distribution Centre (Direct Industrial Fund No.2)

Charter Hall Investor Day Presentation November 2013

100

Update on operations

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Group

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Portfolio summary

Charter Hall Group property platform by sector

	Portfolio Size	No. of	No. of	Gross income	WALE	Occupancy	Average cap rate
	($bn)	properties	tenants	($m)	(years)	(%)	(%)
Office	6.1	56	645	595	5.1	96.8	7.9
Industrial	1.1	39	51	98	10.9	99.9	8.1
Retail	3.0	105	2,272	216	6.7	98.0	8.3
Total	10.21	2001	2,968	909	6.1	97.4	8.0

As at 30 June 2013

Office

Industrial

Retail

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Bankwest Place, Perth, WA (CPOF and partners)

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Coles Distribution Centre, WA (CPIF)

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Secret Harbour Shopping Centre, Rockingham, WA (CQR)

Excludes three residential development projects worth $0.1bn

Charter Hall Group Investor Day 2013

102

Group

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Our reach

Asset and property management hubs in all major locations in Australia

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As at 30 June 2013

Charter Hall Group Investor Day 2013

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GROUP

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Integrated management capabilities

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

Sector
specialists
Capital
Transactions
Experienced
teams
9 Castlereagh Street, Sydney NSW Asset Development
Management
Management
Project leasing
teams Property
Management
Singleton Square, NSW
Sophisticated RM program Regarded by tenants
with major tenants as a “landlord of choice”
Owning 4-8% of core Portfolio with long WALE, sustainable income &
CBD office markets capital growth through the cycle
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Charter Hall Group Investor Day 2013

104

Group

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Asset Management Objective: maximise income and value

Team	 	30 professionals in Sydney, Melbourne, Brisbane and Perth offices Highly experienced team with diverse backgrounds
		Strategic Asset Plans
		Income, expenditure and capital budgets
Deliverables		Leasing analysis and recommendations
		Forecasting and Reporting
		Valuation assessments
		Tenants
Stakeholders	 	Investors/Funds Property & Facilities managers
		Charter Hall Group
		Investment in the skills and experience of people across sectors
		Building and maintaining strong tenant relationships
Operational		Best practice leasing
excellence		Integrated teams
		Implementation of effective sustainability initiatives

Charter Hall Group Investor Day 2013

105

Group

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Property Management Ob ective: Deliverin smart ro-active solutions j g , p

Team	 	Fully integrated in house services with experience and capabilities across all 3 sectors Regional locations supported by State capital and Head Office teams
		Property Business Planning
Deliverables	 	Financial management and reporting Account management
		Property Safety Management framework
		Tenants
Stakeholder	 	Investors/ Funds Communities
		Charter Hall Group
		Dedication to Funds
Operational		Centralised systems
excellence		Financial control practices
		Cost efficiencies

Charter Hall Group Investor Day 2013

106

Office and Industrial Portfolio

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Office

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Portfolio Weightings and Exposure

$ Value - by Group

$ Value - by State

Partnerships Pooled Direct

NSW VIC QLD WA SA/ ACT/ TAS

$ Value - by Precinct

$ Value - by Grade

CBD Suburban

Premium A B C

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108

Charter Hall Group Investor Day 2013

Office

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Active Leasing

605 Tenants

148,244 96% Sqm Average Leases completed occupancy

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

1,038,558 136
Sqm NLA Leases executed
----- End of picture text -----

Notes:

Figures as at 30 September 2013

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Charter Hall Group Investor Day 2013

Office

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Managing Lease Expiries

By Gross Income

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Charter Hall Group Investor Day 2013

Office

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Proactive Leasing Approach

Asset	Challenge	Activity	Activity
No 1 Martin Place,	Macquarie Grouplease	•	Agents appointed – CBRE + DTZ
Sydney	expiry 30,000 sqm Dec	•	Target tenant list and actively responding to current requirements
	14	•	New leases agreed with DLA Piper (6,000 sqm) and Charter Hall (2,450
	7,000 sqm Dec 16		sqm)
		•	Advanced discussions with several prospective tenants
2 Park Street, Sydney	Citigroup hand back	•	Agent appointed - Colliers
	space ~10,000 sqm Jul	•	Negotiations progressing with sub-lease tenants and new prospects
	13 + expiries	•	Leases agreed with Chubb, Hall Chadwick, Regus over 5,300 sqm
59 Goulburn Street,	OEH(State Govt) lease	•	Negotiations progressing with State Govt
Sydney	expiry	•	Preparing asset for future residential redevelopment
	10,000 sqm Dec 14	•	Short term lease strategy alternative plan being prepared
150 Lonsdale Street,	Telstra lease expiry	•	Working with Telstra on various accommodation options
Melbourne	13,800 sqm Sep 14	•	Negotiations progressing
225 St Georges	BHP hand back space	•	Agents appointed – CBRE + JLL
Terrace, Perth	13,139 sqm	•	Negotiations progressing with prospective tenants

111

Charter Hall Group Investor Day 2013

Office

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“Buy, Build, Hold” pipeline

Asset	NLA sqm	Value $m	Status	Status
171 Collins Street, Melbourne	31,000	$230	•	Complete
			•	Leasing remaining vacancy
Workzone West, Perth	15,573	$125	•	Complete
			•	100% Leased
Workzone East, Perth	12,338	$90	•	Underway
			•	50% Leased
175 Eagle Street, Brisbane	22,851	$150	•	Upgrade underway
			•	Leasing remaining vacancy
Bank of Queensland, Brisbane	24,000	$176	•	Works underway
			•	Leasing remaining vacancy
333 George Street, Sydney	14,300	$250	•	DA approved
			•	Marketing underway
570 Bourke Street, Melbourne	51,100	$334	•	DA approved – 15,000 sqm extension and
				refurbishment
			•	Marketing underway

112

Charter Hall Group Investor Day 2013

Office

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Enhancing amenities

Enhancement		Complete Underway
Foyer/Lobby upgrades		12 4
Lift upgrades		5 6
End of Trip facilities		5 3
Sustainability	Continued efficiency gains:
	•	Energy- 9% improvement
	•	Water – 3% improvement
	•	Waste – increased co-mingled

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171 Collins Street, Melbourne

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504 Pacific Hwy, St Leonards, NSW

113

Charter Hall Group Investor Day 2013

Industrial

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Portfolio summary

Fund	Assets	Value $m	WALE	Occupancy
Core Plus Industrial Fund	24	$665m	8.5 years	99%
Core Logistics Partnership	6	$352m	9.3 years	91%
Direct Industrial Fund	7	$210m	12.1 years	100%
Direct Industrial Fund No 2	2	$105m	13.0 years	100%
TOTAL	42	$1,332m	9.7 years	97%

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Coles Distribution Centre, Perth Airport, WA

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Melbourne Airport Business Park, Tullamarine, Vic

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Australian Post Distribution Centre, Rowville Vic

114

Charter Hall Group Investor Day 2013

Industrial

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“Buy, Build, Hold” pipeline

Asset	GLA sqm	Value $m	Status	Status
Toll NQX Facility, Rockhampton	7,000	$12.5	•	Under construction
QLD			•	100% Pre-committed
Blackwoods Logistics Facility,	13,800	$25	•	Under construction
Mackay QLD			•	100% Pre-committed
Northline Logistics Facility Long	16,500	$24	•	Under construction
St, Smithfield NSW			•	100% Pre-committed
MC Business Park, Berrinba, QLD	70,000	$100	•	Planning approval
			•	Marketing underway
Connect West Business Park, Darra	135,000	$190	•	Planning approval
QLD			•	Marketing underway
Smithfield Logistics Estate,	45,000	$65	•	Planning approval
Smithfield NSW			•	Marketing underway
Sherbrook Industrial Park,	30,000	$45	•	Planning approval
Willawong QLD			•	Marketing underway

115

Charter Hall Group Investor Day 2013

Industrial

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Active leasing

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

51 145,562 99% 1,083,000 17
Sqm Average
Tenants Sqm GLA Leases executed
Leases completed occupancy
----- End of picture text -----

101,873sqm leased or renewed in FY13
Leased or terms agreed on a further 43,689sqm to 30 September 2013

Major transactions include:

Australia Post - 10,507sqm
Northline Logistics - 16,500sqm
Chevron - 14,364sqm
Victorian Government - 10,472sqm
Tyne Containers - 45,000sqm
Expansion of 5,680sqm for Amcor at Scoresby and new 10 year lease over 41,893sqm

116

Charter Hall Group Investor Day 2013

Industrial

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Managing lease expiries

By Gross Income

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

80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23+
----- End of picture text -----

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117

Charter Hall Group Investor Day 2013

Retail portfolio John Courtney, Head of Portfolio Operations (AUS and NZ)

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Retail

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Key Portfolio Statistics

As at 30 September 2013

79[1] Retail assets across Australia in 1 listed and 4
- wholesale funds and partnerships
17 Sub Regional Shopping Centres
43 Neighbourhood Shopping Centres
19 Freestanding Supermarkets
Portfolio value over $2.3bn
1,550 specialty tenants - GLA of 191,000sqm
116 anchor tenants GLA of 409,000sqm
Over 600,000sqm of total Retail GLA

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Wanneroo Centre, WA

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Note 1 : count excludes all non Australian retail properties and retail properties in the Bunning's portfolio

119

Charter Hall Group Investor Day 2013

Retail

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Experienced operational teams

A team of over 140 people within the Retail Team working in collaboration with Charter Hall Services Divisions to deliver on operational excellence.

Dedicated retail experts within the Capital Transactions Team.

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Integrated Asset and Property Management teams with national coverage and local knowledge.

Access to a highly skilled Development Services Team with coverage in major capital cities

120

Charter Hall Group Investor Day 2013

Retail

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Disciplined Investment Strategy

			Typical
		Typical GLA	Anchor Tenants
Neighbourhood		< 10,000 sqm	Woolworths Coles	• Neighbourhood and sub-regional supermarket anchored
Sub-regional	10,000	to 40,000 sqm	Woolworths Coles Kmart Big W Target	• $20 - $100m asset value for CQR • Value up to $200m for wholesale funds
			Myer
			David Jones
Regional		40,000sqm+	Woolworths
			Coles
			DDS

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121

Charter Hall Group Investor Day 2013

Retail

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Transaction Activity

Acquisitions by CQR

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Secret Harbour, WA ($33m)

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Tamworth, NSW ($35m)

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Lake Macquarie, NSW (50% sale from DRF to CQR, 100% interest $70m)

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Dubbo, NSW ($31m)

South Gate, SA ($60m)

122

Charter Hall Group Investor Day 2013

Retail

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Transaction Activity

Acquisitions by wholesale funds and partnerships

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Bateau Bay Square, NSW ($164m)

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Keperra Square, QLD ($63m)

123

Charter Hall Group Investor Day 2013

Retail

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Results delivered “through the Asset Life-Cycle”

Fully vertically integrated platform
Functional teams work seamlessly to maximise
- value of the property throughout its life-cycle
Expert in niche sector of supermarket anchored retail centres
Retail is highly responsive to continual refurbishment and expansion.
Charter Hall has a proven track record in the development of retail centres.

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

Strategic Strategic
Asset
Asset Planning
Management
Value add Feasibility
Stable Project
asset delivery
Development
Management
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Charter Hall Group Investor Day 2013

Retail

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Property Management Resources

Our portfolio is managed across 12 hubs located throughout Australia

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Charter Hall Group Investor Day 2013

Retail

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Brand Strategy

Core Brand Idea

The community square for today

Targeting Customers

Customer Experience

Relevance

Local, people focused providing a belonging and connection

A place to meet A forum, the plaza, the common. Creating places that unite us as a community

Trend of service oriented and experience based shopping

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Charter Hall Group Investor Day 2013

Retail

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Brand Strategy

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Charter Hall Group Investor Day 2013

Retail

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Specialty Tenant Leasing Activity

Australia - specialty tenant lease expiry at 30 September 2013

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476 specialty
leases Specialty tenant Current specialty
Leasing deals
completed since WALE steady at retention rate of
completed on
1 July 2012 49,200 m2 GLA 3.1 years 85% and Overall
25% of the
-
201 renewals Occupancy rate
portfolio.
-
275 new deals steady at 98.2 %
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30%
25%
20% 18.1%
% ABR 15.6% 15.3% 16.1%
15% 13.0%
9.4%
10%
5.3%
5% 3.4% 3.8%
0%
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22+
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Tenancy profile and leasing data reflects Charter Hall Groups overall retail assets under management and no one fund

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Anchor Tenant Leasing Activity

Australian anchor tenant lease expiry at 30 September 2013

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10 Anchor tenant Anchor Tenant
37,000 m2 Major tenant Majors Leasing
deals completed WALE 11.7 years
GLA occupancy rate Deals completed
since 1 July 2012
100% on 9.5 % of the
Portfolio
70% 65.4%
60%
50%
40%
% ABR
30%
20%
8.0%
10% 3.4% 2.8% 5.7% 3.8% 7.6%
2.5%
0.8%
0%
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22+
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Tenancy profile and leasing data reflects Charter Hall Groups overall retail assets under management and no one fund

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Asset Enhancement and Redevelopment

Value of major developments completed from 1 July 2012 to 30 Sept 2013 - $98.9 m
Current major projects underway ( approved ) - $59.2 m
Forecast pipeline of projects to commence within the next 3 years – over $250 m

Start date June 2012 June 2012 January 2012 December 2012 Completion date May 2013 May 2013 August 2013 October 2013 Spend(A$m) 16.7 3.4 62 15.2 Year 1 yield 9.1 % 9.9% 8.3% 11.4%	Start date June 2012 June 2012 January 2012 December 2012 Completion date May 2013 May 2013 August 2013 October 2013 Spend(A$m) 16.7 3.4 62 15.2 Year 1 yield 9.1 % 9.9% 8.3% 11.4%
	Approved Projects underway Orange, NSW Lansell, VIC Caboolture, QLD
Start date June 2013 November 2013 November 2013 Completion date April 2014 April 2015 August 2014 Spend(A$m) 5.4 38 15.8 Year 1 yield 10.4% 9.4% 10.2%

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Charter Hall Group Investor Day 2013

Retail RETAIL Development Activity

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Singleton Square – NSW

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Lansell Square - VIC

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Allenstown Square - QLD

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South Hedland Square - WA

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Trends

A focus on service offerings and experience in centre and a connection with the local communities as the “meeting place”
Strong competition between Woolworths and Wesfarmers business in all of their retail formats i.e. Liquor, Supermarkets, DDS, Hardware
Innovation on product range
Improved store formats and designs
Increased international retailers presence
Aldi moving into SA and WA and moving into shopping centres as existing network

they attempt to find infill sites across their

The growing realisation that bricks and mortar can work hand in hand with online to grow retail sales in centre.

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Questions?

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Closing remarks David Harrison, Joint Managing Director

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Expertise across risk/return spectrum

A manager of wholesale, listed and retail investor capital

Risk vs. Target Return Profile

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Target Return
Development
20% + $0.3bn
Office
Retail
15 – 17% Industrial
Wholesale Partnerships Wholesale Pooled Diversified
11 – 14% $1.8bn $0.6bn
Listed (CQR) Retail Investor
Funds
$0.2bn
$2.0bn
$0.3bn
9 – 11% $2.2bn $0.7bn $0.9bn $1.3bn
Risk
Core Core Active Opportunistic
Institutional Investors / Institutional Investors / Institutional Investors /
Pension Funds / Individuals Pension Funds Pension Funds
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Target return = distribution yield + capital appreciation (change in NTA)

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Charter Hall Investor Day 2013 Thank you for your participation

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Disclaimer

This presentation has been prepared by Charter Hall Group (being Charter Hall Limited (ABN 57 113 531 150) and Charter Hall Funds Management Limited (ABN 31 082 991 786) (AFSL 262861) as the responsible entity for Charter Hall Property Trust (ARSN 113 339 147)) (the “Group”). It is a presentation of general background information about the Group’s activities and information is as at 30 September 2013, or as otherwise stated. It is a summary and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. A reader should, before making any decisions in relation to their investment or potential investment in the Charter Hall Group, seek their own professional advice. This presentation is not an offer or invitation for subscription or purchase of securities or other financial products.

Indications of, and guidance on, future earnings and financial position and performance are “forward-looking statements”. Due care and attention has been used in the preparation of forward looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements.

All information here in is current as at 30 September 2013, unless otherwise stated, and all references to dollars ($) or A$ are Australian Dollars unless otherwise stated.

Charter Hall Group Investor Day 2013

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AI assistant

CHARTER HALL GROUP — Investor Presentation 2013

64645_rns_2013-11-20_0df45fdf-085b-4b3b-b2d4-ab233fde1002.pdf

Charter Hall Group

Agenda

Overview of Charter Hall vision, values and strategy 1

Our view of real estate markets around the nation 2

Wholesale funds – Growth, positioning and performance

Break

Retail investor funds – Capitalising on our position and leveraging off growth 4 in SMSFs

Update on operations

Closing remarks 6

What do we stand for?

A 3 minute video

Our Vision

Vision, purpose, values, strategy and goals

OUR PURPOSE

OUR STRATEGY

Investing in our Brand

Upgraded Investor Centre

www.charterhall.com.au

Charter Hall’s new Investor Centre

New Way of Working

Adding value to Charter Hall and our clients

Corporate Responsibility and Sustainability

Evolution of the Business Model

Repositioning of the business 2010-2013

Progress since FY10

Charter Hall Competitive Advantages

Recap on FY14 Activity to date

$331m of Gross Equity in Funds Secured FY14 to date

Notes:

What next?

Positioned for growth 2014+

Solid Earnings Growth Expected in FY14

Questions?

Research at Charter Hall

Charter Pack and promotion

Capital Fundamentals

Capital Fundamentals

Fixed interest rates and property yield spread

Capital Fundamentals Significant reallocating to property is planned

Capital Fundamentals

A-REIT share price/NTA history by type

Capital Fundamentals

Australian superannuation growth

Australian GDP vs Total Superannuation Assets

Growth in Super Assets (over GDP) vs Prime Yields

Office Market

Office Markets

Employment and vacancy

Employment Growth by Type & Population Ratio

Major CBD Vacancy Rates

Office Markets

Major CBD absorption vs. ASX 200

Office Markets

Corporate profits and professional job advertisements

Real Australian Corporate Profits vs Net Absorption

Professional Job Advertisements vs Net Absorption

Office Markets

Department of Employment forecasts

Office Markets

Committed and uncommitted supply

Office Markets

Strategy in action

CPOF

with global partner and CPOF

Retail Market

Retail Market

Rolling Annual Retail Turnover by Type

20yr CPI Index by Category

Retail Market

Retail Market

Retail leasing spreads and occupancy costs

Major A-REIT Releasing Spreads

Average Occupancy Costs by Centre Type

Retail Property Sector

Retail turnover growth by category

Consumer Confidence and Retail Turnover

Household Savings vs. 3yr Term Deposit Rate

CHARTER HALL GROUP Investor Presentation 2013