CHARTER HALL RETAIL REIT — Capital/Financing Update 2017

Jun 15, 2017

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Charter Hall ASX Release Retail Management Limited ACN 069 709 468 AFSL 246996 Charter Hall Retail REIT divests Gladstone Charter Hall Retail REITResponsible entity of Square for $31.5 million and announces Level 20, No.1 Martin PlaceABN 34 357 213 849 14cpu 2H distribution GPO Box 2704 Sydney NSW 2001Sydney NSW 2000 16 June 2017 T +61 2 8651 9000 F +61 2 9221 4655 www.charterhall.com.au

Charter Hall Retail REIT (ASX:CQR) (CQR or the REIT) today announced that it has executed further on its re-positioning strategy, executing a contract to divest Gladstone Square for $31.5 million (100% interest). The asset was sold at book value, reflecting a yield of 7.25%.

The REIT further advises that it is pleased to declare a distribution of 14.0 cents per unit for the half year ending 30 June 2017. Total distributions for FY17 are 28.1cpu, which is in line with FY17 guidance for operating earnings expected to be 30.4 cents per unit and a distribution payout ratio range expected to remain between 90% and 95% of operating earnings.

Scott Dundas, Fund Manager of the REIT said: “The divestment of this non-core property is consistent with our strategy to reduce exposure to freestanding and smaller neighbourhood assets in order to support the acquisition of larger, higher growth assets and value accretive development.”

“This financial year we have divested five non-core properties for more than $100 million and with strong demand for retail assets we will continue to explore additional divestment opportunities. With the recent divestments at or above book value and the high quality investments into Highfields Village, Salamander Bay Shopping Centre and Arana Hills Plaza we are delivering on our strategy to enhance the quality of the CQR portfolio through strategic acquisitions, divestments and redevelopments in the year ahead,” Mr Dundas said.

The transactions are consistent with the REIT’s strategy to transition the portfolio from smaller noncore assets towards larger convenience based supermarket anchored shopping centres with strong demographic profiles where it can add value through active management.

It is anticipated that debt facilities used to fund recent acquisitions will be repaid through this and other future divestments.

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About Charter Hall Retail REIT

Charter Hall Retail REIT is a leading listed real estate investment trust with a portfolio of high quality Australian supermarket anchored neighbourhood and sub-regional shopping centres.

Charter Hall Retail REIT is managed by Charter Hall Group (ASX:CHC), is one of Australia’s leading fully integrated property groups, with over 26 years’ experience managing high quality property on behalf of institutional, wholesale and retail clients. Charter Hall has over $20.0 billion of funds under management across the office, retail and industrial sectors. The Group has offices in Sydney, Melbourne, Brisbane, Adelaide and Perth.

The Group’s success is underpinned by a highly skilled and motivated team with diverse expertise across property sectors and risk-return profiles. Sustainability is a key element of its business approach and by ensuring its actions are commercially sound and make a difference to its people, customers and the environment, Charter Hall can make a positive impact for its investors, the community and the Group. For further information on Charter Hall Group and Charter Hall Retail REIT go to www.charterhall.com.au

For further information, please contact For investor enquiries, please contact For media enquiries, please contact Scott Dundas Philip Cheetham Angus Booth Fund Manager Head of Listed Investor Relations Group Manager - External Affairs Charter Hall Retail REIT Charter Hall Charter Hall T +61 2 8651 9273 T +61 2 8651 9214 T +61 2 8651 9223 scott.dundas@charterhall.com.au philip.cheetham@charterhall.com.au angus.booth@charterhall.com.au

Christine Kelly Head of Retail Finance Charter Hall Retail REIT T +61 2 8651 9401 christine.kelly@charterhall.com.au

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