==> picture [114 x 24] intentionally omitted <==

GARDA Property Group

Level 21, 12 Creek Street W gardaproperty.com.au Brisbane QLD 4000 E [email protected] GPO Box 5270 P +61 7 3002 5300 Brisbane QLD 4001

11 October 2021

VALUATIONS AND DEVELOPMENT PIPELINE

GARDA Property Group (“GARDA”) today provides a presentation on its recent property revaluation program and industrial development pipeline.

– END –

Authorised for release by: Matthew Madsen (Executive Chairman)

For more information please contact:

Paul Brown

Manager, Investor Relations GARDA Property Group Phone: 07 3002 5362 [email protected]

Page 1 of 1

==> picture [229 x 45] intentionally omitted <==

GARDA PROPERTY GROUP (ASX: GDF) VALUATIONS AND DEVELOPMENT | October 2021

==> picture [997 x 277] intentionally omitted <==

DISCLAIMER

This presentation ( Presentation ) has been prepared on behalf of GARDA Property Group ( GDF or Group or GARDA ), comprising GARDA Holdings Limited ( GHL ) and its controlled entities and GARDA Capital Limited (ACN 095 039 366) (AFSL 246714) ( GCL ) as responsible entity of the GARDA Diversified Property Fund ARSN 104 391 273 (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.

This Presentation contains general and summary information about the current and currently proposed activities of GARDA. It does not purport to be complete or contain all information which would be relevant to GDF stapled securities, or existing or prospective investors of GARDA. Other than as required by law, no member of the Group or any of their related entities and their respective directors, employees, officers or advisers give any warranties in relation to the statements and information contained in or referred to in this Presentation.

This Presentation has been compiled from sources which GARDA believes to be reliable. However, it is not audited, and is not a prospectus, product disclosure statement or other disclosure document ( Disclosure Document ) as defined in the Corporations Act 2001 (Cth) ( Corporations Act ), 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 disclosure document may contain. Historical financial and other ‘continuous disclosure’ information required by law can be found at the GARDA website www.gardaproperty.com.au and in the financial statements (also available on the website).

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 securities in GARDA. 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 product disclosure statement ( 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 does not guarantee any particular rate of return or the performance of the Group, nor does it guarantee the repayment of capital or any particular tax treatment.

This Presentation contains certain “forward looking statements” with respect to the financial condition, results of operations and business relating to the Group. These forward looking statements 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. The forward looking statements 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 Group. Various risk factors may cause the actual results or performance of the Group to be materially different from any future results or performance expressed or implied by such forward looking statements. There can be no assurance that any forward looking statements are attainable or will be realised. Past performance should also not be relied upon as being indicative of future performance. No representation, warranty or guarantee, whether express or implied, is made or given by any member of the Group that any forward looking statement will or is likely to be achieved. Except as required by law, GARDA is not liable to release updates to the forward looking statements to reflect any changes.

A number of figures, amounts, percentages, prices, estimates, calculations of value and fractions in this Presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures, amounts, percentages, prices, estimates, calculations of value and fractions may differ from the figures, amounts, percentages, prices, estimates, calculations of value and fractions set out in this Presentation. All references to dollars or $ in this Presentation are to Australian currency.

To the maximum extent permitted by law, any and all liability in respect of the Presentation (and any forward looking statement) 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. GARDA is listed on the Australian Securities Exchange ( ASX ) and all applicable obligations and restrictions contained in (without limitation) the ASX Listing Rules and Corporations Act apply accordingly. The acknowledgements referred to above may be pleaded as a bar to any claim that any reader may bring.

Persons who come into possession of this Presentation (including through a website) who are not in Australia should seek advice on and observe any legal restrictions on distribution in their own jurisdiction. Distribution of this Presentation outside of Australia (whether electronically or otherwise) may be restricted by law. Persons who receive this Presentation outside of Australia are required to observe any such restrictions. Failure to comply with such restrictions may find you in violation of applicable securities laws.

==> picture [54 x 11] intentionally omitted <==

| Valuations & Development

VALUATIONS

OCTOBER 2021

41 Bivouac Place, Wacol

VALUATION HIGHLIGHTS

KEY OUTCOMES OF PORTFOLIO VALUATION CYCLE – OCTOBER 2021

==> picture [51 x 51] intentionally omitted <==

25 cents increase in NTA per security[1]

==> picture [47 x 44] intentionally omitted <==

$67.7m increase in Portfolio Value[2]

$1.70 | 17% NTA PER SECURITY

$558.9m | 14% PORTFOLIO VALUE

==> picture [49 x 49] intentionally omitted <==

Reduction in Gearing[3] 35.3% | 3.1% GEARING

==> picture [40 x 40] intentionally omitted <==

Cap Rate Compression[4] 5.27% | 51bps PORTFOLIO WACR

NTA increase from 30 June 2021.
Increase in portfolio value from the previously adopted independent valuations for relevant properties. 3. Gearing reduction from 30 June 2021.
Movement in capitalisation rates from the previously adopted independent valuations for relevant properties.

==> picture [54 x 11] intentionally omitted <==

| Valuations & Development

SECURITY PRICE PERFORMANCE

NTA PER SECURITY VERSUS ASX SECURITY PRICE SINCE INTERNALISATION[1]

==> picture [810 x 314] intentionally omitted <==

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

$1.80
GDF.ASX NTA per securtity
$1.60
$1.40
$1.20
$1.00
$0.80
$0.60
01-Dec-19 01-Mar-20 01-Jun-20 01-Sep-20 01-Dec-20 01-Mar-21 01-Jun-21 01-Sep-21 01-Dec-21
----- End of picture text -----

NTA and ASX security price chart from 1 December 2019 through 8 October 2021.

==> picture [54 x 11] intentionally omitted <==

| Valuations & Development

VALUATIONS AND FINANCIAL OUTCOMES

==> picture [54 x 50] intentionally omitted <==

GARDA has completed a portfolio valuation program as at 1 October 2021.
Valuation ▪ The program included nine established industrial assets, four commercial office assets and the recently acquired industrial development site at Richlands. Three properties, Mackay, North Lakes and Wacol (Pinnacle East), were not assessed.
Program ▪ The program resulted in a $67.7 million increase in independent valuations, consisting of $44.6 million in industrial, $20 million in office and a $3.1 million increase at Richlands (land).

==> picture [63 x 63] intentionally omitted <==

==> picture [66 x 65] intentionally omitted <==

Net Tangible Assets[1] (“NTA”) per security has increased $0.25 to $1.70 per security as at 1 October 2021, representing a 17.2% premium to the 30 June 2021 NTA of $1.45 per security.
▪ NTA of $1.70 also implies a 15.3% premium to the GDF ASX security price of $1.475 per security on 8 October 2021. ▪ Gearing reduces to 35.3%, from 38.4% as reported at 30 June 2021.
Financial ▪ NTA of $1.70 also implies a 15.3% premium to the GDF ASX security price of $1.475 per security on 8 October 2021. ▪
Impact Gearing reduces to 35.3%, from 38.4% as reported at 30 June 2021. ▪ Property portfolio is now independently valued at $558.9 million. ▪
Portfolio Portfolio WACR is now 5.27% - a compression of 51 basis points. Impact ▪ Sectoral composition (by value) consists of industrial (54%) (including industrial development land (13%)) and office (46%). ▪ 1 October 2021 WALE (by income) of 5.6 years and occupancy (by income) of 92%.
NTA calculated from unaudited management accounts.

==> picture [54 x 11] intentionally omitted <==

| Valuations & Development

VALUATION OVERVIEW

==> picture [61 x 62] intentionally omitted <==

==> picture [50 x 49] intentionally omitted <==

5.64% OFFICE CAP RATE

4.90%

INDUSTRIAL CAP RATE

Property	Sector	1 Oct 2021 Valuation ($m)	Cap Rate (%)	Cap Rate Movement (bps)	Movement in Valuation ($m)
Acacia Ridge,38 Peterkin St	Industrial / Redevelopment	7.0	6.25%	-100	0.8
AcaciaRidge, 56PeterkinSt	Industrial/Redevelopment	7.6	6.25%	-75	0.6
AcaciaRidge, 69PeterkinSt	Industrial	21.7	4.25%	N/A	10.2
Berrinba,1-9KellarSt	Industrial	13.3	4.75%	-50	1.3
Heathwood, 67 Noosa St	Industrial	17.8	4.50%	-200	6.0
Mackay, 69-79Diesel Dr1	Industrial	35.0	6.50%	0	0.0
Morningside, 326 & 340ThynneRd	Industrial	49.3	4.75%	-50	5.6
Pinkenba,70-82 Main Beach Rd	Industrial	32.0	4.75%	-25	5.8
Wacol,41 BivouacPl	Industrial	57.5	4.25%	-75	12.1
Wacol,PinnacleWest (Bldg C)	Industrial	13.9	4.50%	-50	1.4
Wacol,PinnacleWest (balanceland)	Industrial Land	10.3	N/A	N/A	0.5
North Lakes,109-135BoundaryRd1	Industrial Land	20.0	N/A	N/A	0.0
Wacol,PinnacleEast1	Industrial Land	7.2	N/A	N/A	0.0
Richlands, 56-72 Bandara St2	Industrial Land	9.9	N/A	N/A	3.1
Box Hill,436Elgar Rd	Office	45.5	4.75%	-75	6.5
Cairns,7-19Lake St	Office	90.0	6.625%	-12.5	3.5
Richmond, 572-576 SwanSt (Bot7)	Office	58.5	5.25%	-25	4.5
Richmond, 588ASwanSt (Bot 9)	Office	62.5	5.25%	-25	5.5
Total Portfolio		558.9	5.27%		67.7

Sector (by Value)

Office Industrial Land / Industrial Development 41% 46% 13%

Geography (by value)

Cairns Mackay Brisbane Melbourne 48% 6% 30% 16%

Mackay, North Lakes and Wacol (Pinnacle East) were not independently valued as part of this program and will be valued in line with GARDA’s valuation policy.
Richlands valuation dated 13 July 2021. $3.1 million increase is from the acquisition price of $6.8 million.

==> picture [54 x 11] intentionally omitted <==

| Valuations & Development

INDUSTRIAL DEVELOPMENT

==> picture [610 x 546] intentionally omitted <==

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

| Valuations & Development
----- End of picture text -----

‘BUILD TO OWN’ INDUSTRIAL DEVELOPMENT PIPELINE

~156,000M² OF INDUSTRIAL DEVELOPMENT TO BE CONSTRUCTED

==> picture [854 x 405] intentionally omitted <==

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

INDUSTRIAL DEVELOPMENT PIPELINE GFA [1] DELIVERY
North Lakes (new) 98,000
Wacol, Pinnacle East (new) 13,000
Richlands (new) 13,000
Wacol, Pinnacle West (Bldg A) 3,000
Acacia Ridge Stage 2 15,265
Wacol, Pinnacle West (Bldg B) 7,830
Acacia Ridge Stage 1B 6,000
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000
(m [2] )
Existing Pipeline New Pipeline Acquisitions²
1. GFA = gross floor area.
2. New pipeline acquisitions acquired during CY2021.
----- End of picture text -----

==> picture [54 x 11] intentionally omitted <==

| Valuations & Development

ILLUSTRATIVE PIPELINE VALUATION METRICS

==> picture [411 x 400] intentionally omitted <==

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

Indicative Valuation Metrics
$125/m²
AVERAGE RENT RATE
4.75%
INDUSTRIAL WACR
$2,632/m²
CAPITAL VALUE
156,000m²
PIPELINE GFA
$410 Million
ON COMPELTION VALUE
----- End of picture text -----

$125/m² p.a. is the assumed average rent rate used for 156,000m² of future pipeline GFA. The average net rent of GARDA’s comparable portfolio of established industrial assets is $128/m².
4.75% is the assumed weighted average capitalisation rate (WACR) used to estimate the on-completion value of 156,000m² of future pipeline GFA. The WACR of GARDA’s comparable portfolio of established industrial assets is 4.61%.
$2,632/m² capital value of future pipeline on completion value calculated as net rent rate of $125/m² divided by WACR of 4.75%.

==> picture [408 x 215] intentionally omitted <==

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

Berrinba, 1-9 Kellar St
----- End of picture text -----

==> picture [54 x 11] intentionally omitted <==

| Valuations & Development

ILLUSTRATIVE ANALYSIS – POTENTIAL NTA UPSIDE

==> picture [183 x 384] intentionally omitted <==

	*Inputs, estimates and assumptions for illustrative purposes:*	*Inputs, estimates and assumptions for illustrative purposes:*
$410 Million	▪	156,000m² at $2,632/m² (based on $125/m² net rent capitalised at 4.75%).
ON-COMPLETION INDUSTRIAL VALUE
	▪	As the development of 156,000m² will occur over a multi-year period, it may
$209 Million PIPELINE COST TO BE FUNDED	▪ ▪	potentially be debt funded. Bulk and Civil earthworks - $22m (North Lakes $18m and Wacol $4m) Development costs - $187m ($1,200/m²)
$66 Million CARRYING VALUE OF DEVELOPMENT ASSETS	▪ ▪	$51.6 million of land at value on balance sheet today. $14.4 million of redevelopment asset value on balance sheet today.
$135 Million POTENTIAL NTA ACCRETION	▪	If realised, completing the pipeline should lead to significant NTA accretion.

==> picture [54 x 11] intentionally omitted <==

| Valuations & Development

ILLUSTRATIVE ANALYSIS – PROPERTY INCOME

==> picture [186 x 372] intentionally omitted <==

156,000m²				$125/m²
PIPELINE GFA				AVERAGE RENT RATE
	$19.5			Million
	NET PROPERTY INCOME PER ANNUM
~ $5.0 Million			▪	Indicative interest costs associated with debt funding the delivery of 156,000m² of industrial pipeline.
ANNUAL INTEREST EXPENSES TO FUND DELIVERY			▪	Assuming 100% debt funded and a weighted average cost of debt1 of 2.5%
~ $14.5 Million POTENTIAL GROWTH IN FFO PER ANNUM			▪ ▪	FY21 FFO per security guidance of 8.0 – 8.5 cents (or $16.7m – $17.7m) on 208.6 million securities. If realised, the pipeline should lead to significant FFO accretion (subject to the dilutive impact of any equity raise).
		1.	Current weighted average cost of debt is 2.2%.

==> picture [54 x 11] intentionally omitted <==

| Valuations & Development

PIPELINE – THE LOGICAL ORDER

==> picture [76 x 90] intentionally omitted <==

▪ Land available for redevelopment :

15,265m² of available GFA at Acacia Ridge stage 2 (CY 2022).
Currently developed land :
10,830m² of available GFA at Wacol, Pinnacle West (CY 2022).

==> picture [177 x 109] intentionally omitted <==

==> picture [177 x 110] intentionally omitted <==

==> picture [179 x 112] intentionally omitted <==

==> picture [177 x 109] intentionally omitted <==

==> picture [180 x 106] intentionally omitted <==

==> picture [179 x 110] intentionally omitted <==

▪ Undeveloped land

13,000m² of available GFA at Bandara Street, Richlands (CY 2022)
13,000m² of available GFA at Wacol, Pinnacle East (CY 2023)
98,000m² of available GFA at North Lakes (CY 2023-2027).

==> picture [145 x 146] intentionally omitted <==

==> picture [53 x 11] intentionally omitted <==

| Valuations & Development

==> picture [512 x 576] intentionally omitted <==

==> picture [230 x 44] intentionally omitted <==

w: gardaproperty.com.au
e: [email protected]

Level 21, 12 Creek Street, Brisbane QLD 4000 GPO Box 5270, Brisbane QLD 4001

p: +61 7 3002 5300

AI assistant

GARDA PROPERTY GROUP Investor Presentation 2021

64972_rns_2021-10-10_b0e8970b-1a90-4247-83e3-a826adfd8695.pdf