CROMWELL PROPERTY GROUP — Earnings Release 2013

Aug 25, 2013

ASX Announcement

26 August 2013

CROMWELL PROPERTY GROUP REPORTS RECORD EARNINGS

• Operating earnings up 28% to $102.4 million (7.6 cps) and full year distributions of 7.25 cps

• Statutory accounting profit of $46.2 million (3.4 cps)

• Acquisitions totalling $641 million increased value of portfolio to $2.4 billion with NTA of 70 cps

• Strong increase in contribution from funds management business

• Forecast FY14 operating earnings of 8.3 cps and distributions of 7.5 cps

Cromwell Property Group (ASX: CMW) has today reported a 28% increase in operating earnings to a record $102.4 million with the Group’s $2.4 billion portfolio of property assets continuing to generate strong, stable cash flows.

The operating earnings equate to 7.6 cents per security (cps) and the result exceeded guidance of 7.5 cps. Distributions of 7.25 cps were paid throughout the year (including a June 2013 distribution paid in August). Cromwell has forecast an operating earnings increase of 8.8% to 8.3 cps and a 3.4% increase in distributions to 7.5 cps for the full year to 30 June, 2014.

Cromwell Chief Executive Officer Paul Weightman said the strong operating result was further evidence of the success of the Group’s disciplined and highly successful long-term investment strategy and the benefits of a strong, stable management team.

“We are pleased to have once again delivered a record operating earnings result while continuing to improve the size and quality of our portfolio throughout the year,” Mr Weightman said.

“This is consistent with our strategy of providing secure, steadily growing distributions to investors through the ownership of a portfolio of quality assets with a long weighted average lease expiry.”

Property Portfolio

Property investments continued to be the mainstay of the Group’s income, contributing $97.2 million after debt costs or 95% of operating earnings for the year, an increase of 21% over the previous year.

The increase included growth in “like for like” property income of 2.8%, among the highest in the sector. Growth also came via additional rental income from property acquisitions during the past 2 years including the NSW Portfolio and Brisbane CBD properties acquired in May 2013.

A total of 11 property assets were externally revalued at June 2013, representing approximately 48% of the property portfolio by value. Valuations fell a modest 1.8% during the year, reflecting the more difficult economic conditions encountered. The weighted average capitalisation rate (WACR) was 8.51% across the portfolio, compared with 8.28% at June 2012. The increase in cap rate was as a result of the acquisitions during the year.

The portfolio was 96.1% leased at year-end, with a 6.1 year weighted average lease expiry. Importantly, tenant quality remains high, with 46% of rental income at balance date underpinned by Government or Government owned/funded entities, and a further 37% from listed companies or their subsidiaries.

Cromwell Property Group (ASX:CMW) comprising Cromwell Corporation Limited (ABN 44 001 056 980) and Cromwell Property Securities Limited (ABN 11 079 147 809 AFSL 238052) as responsible entity for Cromwell Diversified Property Trust (ABN 30 074 537 051 ARSN 102 982 598).

Further information and media releases can be found at the Cromwell website: www.cromwell.com.au

Cromwell Property Group (ASX:CMW) ASX Announcement 26 August, 2013

Funds Management

Funds management earnings increased to $5.8 million in 2013 from $0.2 million in 2012, reflecting Cromwell’s continuing success in delivering new products to the market and an increase in recurring revenue from assets under management.

Mr Weightman said that the growth in contribution from funds management activities reinforced the value and future potential of Cromwell's internalised management platform.

“The funds management business is a valuable asset which provides the group with additional growth to complement Cromwell’s strong property income stream,” Mr Weightman said. “The business has built a considerable record of success in recent years with an attractive range of products and we anticipate continued significant growth in earnings in FY14.”

Capital management

Debt increased due to the additional borrowings drawn down to fund acquisitions. Gearing, however, decreased from 51% to 46% during the year as a result of new equity raised and remains well within the preferred range of 35-55%.

The average interest cost fell during the year from 6.9% to 6.4% reflecting lower variable interest rates as the Reserve Bank reduced the cash rate.

NTA per security increased during the year from $0.67 to $0.70, primarily as a result of the issue of new equity to fund acquisitions.

Distributions paid for the year were 7.25 cents up from 7.00 cents in 2012, including a June 2013 quarter distribution of 1.8125 cents per stapled security paid on 15 August 2013. This represents a growth in distributions per security of 3.6% in 2013.

Outlook

Mr Weightman said the outlook for Cromwell remained positive despite the continuing sluggish pace of economic growth, with Cromwell’s property portfolio expected to continue to deliver consistent earnings in 2014 and operating earnings per security to rise to 8.3 cents, an increase of 9.2% over 2013.

“We expect to achieve good growth in both operating earnings and distributions per security in 2014, underpinned by this strong property portfolio and the funds management business, which we believe can continue to deliver significant growth in future years,” Mr Weightman said.

Distributions are also expected to increase to 7.5 cps (annualised) from the September 2013 quarter, an increase of 3.4% on 2013 levels.

ENDS

Media Enquiries: Paul Weightman Managing Director/CEO (Cromwell) +61 411 111 028 pweightman@cromwell.com.au

Cromwell Securityholder Enquiries: Investor Services Centre 1800 334 533 (within Australia) +61 7 3225 7777 (outside Australia) invest@cromwell.com.au

Page 2 of 2