GARDA PROPERTY GROUP — Interim / Quarterly Report 2016

Jan 21, 2016

INSERT TITLE HEREGARDA DIVERSIFIED

1 | GARDA DIVERSIFIED PROPERTY FUND OPERATIONAL UPDATE

INSERT TITLE HEREGDF OVERVIEW

PORTFOLIO

$140.7M 8.9% PORTFOLIO VALUE WEIGHTED AVERAGE Valuations at 1 April 2015. CAP RATE

3.3 YEARS WALE

93% OCCUPANCY

(agreed leases, subject to documentation)

CAPITAL

$0.0225 per unit Paid October 2015 $0.0225 per unit Due 27 January 2016

$0.09 per unit FULL YEAR DISTRIBUTION FORECAST

$1.028

32% LVR

NTA PER UNIT

As at 30 June 2015

2 | GARDA DIVERSIFIED PROPERTY FUND OPERATIONAL UPDATE

GDF SINCE LISTING

LEASING

2,716m² leased or renewed across the portfolio assets, further mitigating income risk in FY16 and FY17 and resulting in a relatively stable portfolio WALE of 3.3 years and an occupancy of 93%.

CAPITAL INVESTMENT

Capital reinvestment program is being executed as expected. $3m investment anticipated by June 2016.

DISTRIBUTIONS - QUARTERLY

$0.0225 per unit paid in October 2015

$0.0225 per unit declared for December 2015 quarter and due to be paid 27 January 2016 Full year distribution forecast of $0.09 per unit inline with PDS forecast¹

ON MARKET BUY-BACK

3.3 million GDF units have been bought back at a weighted average price of $0.97 per unit, representing a 5.6% discount to NTA[2] .

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1. As per product disclosure statement dated 22 May 2015 2. NTA as at 30 June 2015

3 | GARDA DIVERSIFIED PROPERTY FUND OPERATIONAL UPDATE

1. PORTFOLIO - LEASING

• Tenant retention has been a primary focus during first half of the 2016 financial year.

• New leasing outcomes also achieved.

• Materially GDF’s 4th largest tenant representing 6% of fund income, Fulton Hogan, have renewed 1,847m² in Richmond for 6 years from 1 July 2016 to 30 June 2022.

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PORTFOLIO LEASING COMPLETED
PROPERTY TENANT NLA (M²) TERM START DATE RENT REVIEW
Richmond Fulton Hogan * 1,847 6 years 01/07/2016 3.50%
Cairns Dep. Of Public Works 286 2 years 01/11/2015 4.00%
Cairns Cape Flattery Silica Mines * 260 7 years 01/12/2015 3.50%
Cairns Morgans Financial * 123 7 years 01/06/2016 3.50%
Murarrie Automatic Data Processing * 200 6 years 01/04/2016 3.75%
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* Agreed leases subject to documentation

4 | GARDA DIVERSIFIED PROPERTY FUND OPERATIONAL UPDATE

AT RISK INCOME – FY16 & FY17

• At July 2015 the net income that was due to expire through FY16 was 5% and through FY17 was 10%.

• 2,716m² has been leased or renewed during the first half reducing FY16 expiry to 1% and FY17 expiry to 4%.

• Continued focus on addressing remaining FY16 and FY17 lease expiries and portfolio vacancy including:

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TENANT PROPERTY NLA (M²) EXPIRY
Native Title Tribunal Cairns 401 June 2016
Qld State Government Cairns 110 June 2016
Kuene & Nagel Lytton 2,200 December 2016
Qld Police Varsity Lakes 953 February 2017
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• However FY18 expiries are a key focus for management.

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LEASE EXPIRY PROFILE
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PORTFOLIO REVIEW

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32%
26%
16%
7%
6%
4%
3% 3%
1% 2%
Vacant FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2025
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30-Jun-15 31-Dec-15
3.3 3.3
95% 93%
Occupancy (by income) WALE (by income)
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5 | GARDA DIVERSIFIED PROPERTY FUND OPERATIONAL UPDATE

2. DEBT MANAGEMENT

DEBT FACILITY - COVENANTS @ 31 DEC 2015	DEBT FACILITY - COVENANTS @ 31 DEC 2015	DEBT FACILITY - COVENANTS @ 31 DEC 2015		DEBT FACILITY - DRAWN @ 31 DEC 2015	DEBT FACILITY - DRAWN @ 31 DEC 2015	DEBT FACILITY - DRAWN @ 31 DEC 2015
	Actual	Covenant			Drawn	Limit
LVR	32%	45%		Facility 1	$42.6m	$42.6m
Interest Cover Ratio	6x	2.5x		Facility 2	$2m	$20.7m

• Initial drawn amount of $42.6m was fixed for 4 years at an annualised rate of 3.845% per annum.

• Subsequently GDF has drawn $2m which has been applied to capital reinvestment and the on market buy back. This has been fixed for approximately 3.5 years to align with the initial $42.6m draw, at an annualised rate of 3.78% per annum.

• Weighted average annualised interest rate of 3.84%.

• Conservative capital structure with loan-to-value ratio of 32% with interest obligations serviced at 6 times income.

• Further draws are anticipated during FY16 which will be applied to the capital reinvestment program and any continued activity in the on market buy back.

6 | GARDA DIVERSIFIED PROPERTY FUND OPERATIONAL UPDATE

3. DISTRIBUTIONS

• First quarter FY16 GDF distribution was paid on 22 October 2015 at a rate of $0.0225 per unit.

• Second quarter FY16 distribution is due for payment on 27 January 2016 at a rate of $0.0225 per unit.

• GDF maintains its forecast FY2016 of $0.09 per unit annual distribution¹.

• FY2016 forecast tax advantage income of between 33% and 43%¹.

1. As per product disclosure statement dated 22 May 2015

7 | GARDA DIVERSIFIED PROPERTY FUND OPERATIONAL UPDATE

4. ON MARKET BUY-BACK

• GDF may acquire up to 20.0 million GDF units up to and including 11 May 2016, as approved by

• unitholders.

• 3.3 million units have been bought back since 2 July 2015.

• Units purchased back at a weighted average price of $0.97 representing a $0.06 discount to NTA ($1.028)¹.

• Average daily trading volume of 175,308 units supporting a liquid secondary market.

1. NTA as at 30 June 2015

8 | GARDA DIVERSIFIED PROPERTY FUND OPERATIONAL UPDATE

INSERT TITLE HERE

02 PORTFOLIO OF ASSETS

9 | GARDA DIVERSIFIED PROPERTY FUND OPERATIONAL UPDATE

PORTFOLIO SUMMARY – PROPERTY

7-19 LAKE STREET, CAIRNS, QLD

Date acquired: Jun-06 Occupancy: 83% Valuation @ 1 April 2015: $37,000,000 WALE: 3.4 (agreed leases, subject to documentation) Ownership interest: 100% Tenants: 27 NLA: 14,813m² NABERS: 5 star Car spaces: 254

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10 | GARDA DIVERSIFIED PROPERTY FUND OPERATIONAL UPDATE

PORTFOLIO SUMMARY – PROPERTY

572 - 576 SWAN STREET, RICHMOND, VIC

436 ELGAR ROAD, BOX HILL, VIC

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Date acquired: Nov-07

Valuation @ 1 April 2015: $31,600,000 Ownership interest: 100% NLA: 6,587m² Car spaces: 178

Occupancy: 100%

WALE: 3.3

(agreed leases, subject to documentation) Tenants: 2 NABERS: 5 star

Date acquired: Sept-07

Valuation @ 1 April 2015: $18,500,000 Ownership interest: 100% NLA: 5,725m² Car spaces: 197

Occupancy: 100% WALE: 3.5 Tenants: 3 NABERS: 2 star

11 | GARDA DIVERSIFIED PROPERTY FUND OPERATIONAL UPDATE

PORTFOLIO SUMMARY – PROPERTY

747 LYTTON ROAD, MURARRIE, QLD

12-14 THE CIRCUIT, BRISBANE AIRPORT, QLD

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Date acquired: May-07 Valuation @ 1 April 2015: $13,600,000 Ownership interest: 100% NLA: 3,617m² Car spaces: 167

Occupancy: 91% WALE: 2.9 Tenants: 4 NABERS: 3 star

Date acquired: Jan-07

Valuation @ 1 April 2015: $20,000,000 Ownership interest: 100% NLA: 4,675m² Car spaces: 51

Occupancy: 100% WALE: 3.9 Tenants: 1 NABERS: 5 star

12 | GARDA DIVERSIFIED PROPERTY FUND OPERATIONAL UPDATE

PORTFOLIO SUMMARY – PROPERTY

154 VARSITY PDE, GOLD COAST, QLD

142 BENJAMIN PLACE, LYTTON, QLD

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Date acquired: Aug-07 Valuation @ 1 April 2015: $12,000,000 Ownership interest: 100% NLA: 3,994m² Car spaces: 134

Occupancy: 89% WALE: 2.3 Tenants: 4 NABERS: 5 star

Date acquired: Sept-07 Valuation @ 1 April 2015: $7,950,000 Ownership interest: 100% NLA: 5,677m² Car spaces: N/A

Occupancy: 100% WALE: 3.0 Tenants: 2 NABERS: N/A

13 | GARDA DIVERSIFIED PROPERTY FUND OPERATIONAL UPDATE

DISCLAIMER

This presentation ( Presentation ) has been prepared on behalf of GARDA Capital Limited (ACN 095 039 366) (AFSL 246714) ( GARDA ) as responsible entity of the GARDA Diversified Property Fund ( GDF or the Fund ).

The information and statements in this Presentation were prepared or are made only as of the date of this Presentation, unless otherwise stated. It is subject to change, and GARDA is not obliged to update this Presentation for any changes. No member of the GARDA Group or any of their related entities and their respective directors, employees, officers and advisers give any warranties in relation to the statements and information contained in or referred to in this Presentation.

This Presentation contains general and summary information, and does not purport to be complete or contain all information which would be relevant to existing or prospective investors of GDF.

This Presentation has been compiled from sources which GARDA believes to be reliable. However, it is not audited, and is not a product disclosure statement ( PDS ) or other disclosure document as defined in the Corporations Act 2001, and has not been lodged with the Australian Securities and Investments Commission ( ASIC ). It is not, nor does it purport to be, complete or include all the information that a PDS or other disclosure document may contain. Historical financial and other ‘continuous disclosure’ information required by law can be found at the GARDA website www.gardacapital.com.au and in the audited financial statements (also on the website). All references to dollars or $ in this Presentation are to Australian currency.

Nothing contained in the Presentation constitutes investment, legal, tax or other advice. It is not an offer of securities, or a recommendation to buy or sell units in GDF. It has been prepared for general information only, and without taking into account the investment objectives, financial situation or needs of individuals. Any existing or prospective investor should not rely on this Presentation, but consider the appropriateness of the information in any PDS or other public sources having regard to their own objectives, financial situation and needs and seek appropriate advice, including financial, legal and taxation advice appropriate to their jurisdiction. GARDA is not licensed to provide financial product advice in respect of any securities, including units in GDF. Neither the GARDA Group nor the Fund guarantee any particular rate of return or portfolio metrics or the performance of the Fund, nor do they guarantee the repayment of capital or payment of distributions from the Fund, or the valuations, or any particular tax treatment.

This Presentation contains certain “forward looking statements” ( Forecasts ) with respect to the financial condition, results of operations and business relating to the GARDA Group and the Fund. These Forecasts may involve subjective judgments. The words “forecast”, “estimate”, “likely”, “anticipate”, “believe”, “expect”, “project”, “opinion”, “predict”, “outlook”, “guidance”, “intend”, “should”, “could”, “may”, “strategy”, “target”, “plan” and other similar expressions are intended to identify forward-looking statements.

Any Forecasts are by their nature subject to significant and unknown risks, uncertainties, vagaries and contingencies, many (if not all) of which are outside the control of members of the GARDA Group. Various risk factors may cause the actual results or performance of GARDA or the Fund to be materially different from any future results or performance expressed or implied by such Forecasts. There can be no assurance that any Forecasts are attainable or will be realised. No representation, warranty or guarantee, whether express or implied, is made or given by any member of the GARDA Capital Group that any Forecast will or is likely to be achieved. Except as required by law, neither GARDA nor the Fund is liable to release updates to any Forecasts to reflect any changes.

GDF is listed on the ASX and all applicable obligations and restrictions contained in (without limitation) the Listings Rules and Corporations Act apply accordingly. To the maximum extent permitted by law, any and all liability in respect of the Presentation (and any Forecast) is expressly excluded, including, without limitation, any liability arising from fault or negligence, for any direct, indirect or consequential loss or damage arising from any loss whatsoever arising from the use of the information in this Presentation or otherwise arising in connection with it. The disclaimer and acknowledgements referred to above may be pleaded as a bar to any claim that any reader may bring.

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GARDA DIVERSIFIED PROPERTY FUND

OPERATIONAL UPDATE | JANUARY 2016