GOODMAN GROUP — Interim / Quarterly Report 2011

Feb 23, 2011

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Goodman delivers $171 million half year operating profit, up 23% on 1HFY10

Date 24 February 2011 Release Immediate

Goodman Group (‘Goodman’ or ‘Group’) today announced its results for the half year ended 31 December 2010. Key financial and operational highlights for the period are:

Financial highlights

• • Operating profit after tax[1] of $170.5 million, a 23% increase on same period last year
• • Fully diluted operating earnings per security (EPS) of 2.6 cents[2]
• • Distribution per security (DPS) of 1.5 cents
• • Statutory accounting profit of $226 million
• • Strong financial position with balance sheet gearing maintained at 24.5% and interest coverage ratio (ICR) of 4.8x
• • Net tangible assets ratio (NTA) of $0.47 per security[3]
• • Group’s liquidity at $1.45 billion, with weighted average debt maturity of 3.7 years
• • Strong momentum to deliver full year result of $380 million, up 23% on FY2010 equating to a fully diluted operating EPS of 5.5[4] cents per share
• • Full year guidance driven by growth in active earnings to 30% to 35% of operating EBIT, with more than 50% EBIT contribution by offshore operations

Operational highlights

• • Improved property fundamentals across core investment portfolio, with occupancy increasing to 95% and a weighted average lease expiry of 5.5 years
• • 48% EBIT contribution in 1HFY11 from offshore operations
• • $1.5 billion of committed third party equity raised across new and existing funds

1 Operating income is before unrealised gains and losses from investment property revaluations, mark to market of derivatives and other non-cash items and one off gains included in the statutory accounting profit.

2 2.6 cents is on a fully diluted basis for the CIC hybrid securities and CIC options. This equates to 2.7 cents on an undiluted basis.

3 $0.47 is on a fully diluted basis for the CIC hybrid securities and CIC options. This equates to $0.48 on an undiluted basis.

4 Fully diluted for CIC hybrid securities and CIC options.

Level 10, 60 Castlereagh Street, Sydney NSW 2000 | GPO Box 4703, Sydney NSW 2001 Australia Tel +61 2 9230 7400 | Fax +61 2 9230 7444 | info-au@goodman.com | www.goodman.com Goodman Limited ABN 69 000 123 071 Goodman Funds Management Limited ABN 48 067 796 641 AFSL Number 223621 as responsible entity of Goodman Industrial Trust ARSN 091213 839

• • $0.7 billion of new developments have commenced across nine countries, substantially pre-committed and matched to third party capital, growing work in progress to $1.5 billion

Goodman’s Group Chief Executive Officer, Mr Greg Goodman said, “We are pleased to announce the Group’s half year result which represents a 23% increase on the same period last year and delivers 47% of our 2011 full year EPS guidance. It reflects the strong platform for growth that we have established and the ongoing delivery of a range of initiatives across the Group and our managed funds.

“Operating momentum continued to build across our business during the first half of the financial year and Goodman has benefitted from a solid performance across all of our business units. Our development and management activities made a 23% contribution to overall operating EBIT, while geographically, our offshore businesses contributed 48%.

“We are well positioned for the second half of FY2011 and will continue to focus on the delivery of our current development and management activities in our key markets around the world, and new opportunities identified in Asia and Europe to drive earnings growth. This is expected to increase the operating EBIT contribution from our offshore businesses to over 50% in the second half of the year, with our development and management activities expected to make a second half EBIT contribution of 30% to 35%, growing to 40% to 50% over the medium-term.”

During the first half, underlying property fundamentals have been robust, driven by strong leasing results and development activities have increased in all of Goodman’s key markets. Development work in progress was $1.5 billion at the end of the reporting period reflecting a number of new projects commenced across Asia Pacific and Europe. Significantly, new developments continue to be undertaken on a prudent basis and primarily matched to third party capital, to mitigate risk and maintain the Group’s strong balance sheet.

“In our managed funds business, we raised $1.5 billion of new committed equity. We completed the half year with the Goodman-led consortium proposal to acquire 100% of the ordinary units in ING Industrial Fund (IIF) being unanimously recommended by the Board of ING Management Limited (IML) to IIF unitholders. We are currently working through the transaction conditions with IML and expect a completion date of 29 March 2011, subject to all conditions being satisfied, including a 75% vote in favour of the proposal by IIF unitholders.” Mr Goodman added.

Strategy

The Group remains committed to a prudent yet active approach in the delivery of its previously enunciated business strategy and is focused on maintaining its position as a strong industrial property and business space partner in all of the markets in which it operates. The strength of Goodman’s business is driven by its proven capability and global operating platform; its relationships with an extensive, high quality customer base; and, its ability to raise capital from global investment partners.

Goodman continued to build momentum across all of its business activities in the first half, capitalising on the completion of a range of initiatives that have established a sound platform for growth, while maintaining a strong financial position.

Level 10, 60 Castlereagh Street, Sydney NSW 2000 | GPO Box 4703, Sydney NSW 2001 Australia Tel +61 2 9230 7400 | Fax +61 2 9230 7444 | info-au@goodman.com | www.goodman.com Goodman Limited ABN 69 000 123 071 Goodman Funds Management Limited ABN 48 067 796 641 AFSL Number 223621 as responsible entity of Goodman Industrial Trust ARSN 091 213 839

“We are well positioned for growth, with solid momentum in our current development and management activities. We are actively pursuing growth opportunities and for the period ahead, expect additional third party equity to be committed to our Asian platform, facilitating the further expansion of our China, Hong Kong and Japan businesses. Increased demand from Western Europe and Poland is also expected to deliver a select number of high quality opportunities for the Group and our managed funds. Goodman will seek to opportunistically recycle assets, while focusing on the prudent rollout of our global development pipeline to mitigate take-out and funding risk, and ensuring development returns are maximised by leveraging higher and better use opportunities.” Mr Goodman said.

Operations

Goodman’s operations delivered operating EBIT of $274.6 million. The earnings composition was in line with the Group’s expectations, driven by an increased contribution from the active components of its business. Investments contributed 77%, with 12% from developments and 11% from management services. Operational highlights include the following:

Investments

Underlying property fundamentals strengthened over the first half. Overall occupancy increased to 95%, up 2% since June 2010, with a weighted average lease expiry across the investment portfolio of 5.5 years and continued low arrears.

Mr Goodman commented: “We have experienced robust underlying property fundamentals during the half year which is supported by the strength of our customer relationships. We achieved improved leasing activity across all markets resulting in approximately 1 million sqm of space leased, with rental growth of 3.4% on new leases. Customer demand for prime logistics and business space is expected to remain high, reflecting the limited availability of new supply. We are well positioned to capture this demand given our commitment to customers, the strength of our relationships, and flexible approach to meeting their needs.”

The Group’s direct investment portfolio recorded a small valuation gain for the half year of $1.9 million. Valuation indices in major markets have shown signs of stabilising as liquidity has returned. Positive momentum has been apparent in Hong Kong and China.

Developments

Developments contributed $35.7 million or 12% to the Group’s EBIT, reflecting the growth in development activity across the business.

The Group commenced $0.7 billion of new development projects during the first half across nine countries. An overall leasing pre-commitment of 97% was achieved on new projects with an average lease term in excess of 11 years, reflecting the high level of customer demand that exists in Goodman’s key markets of operation. 89% of current development commitments are for third parties or our funds, with the remaining 11% in negotiation for third party take-out.

As at 31 December 2010, the Group’s work in progress had grown to $1.5 billion across 33

projects, generating a yield on cost of 9.0%.

“Momentum continues to build within our development business and customer demand remains solid for prime quality logistics space. We are focused on the prudent rollout of our $10 billion development pipeline and have identified a number of opportunities in our key markets around

Level 10, 60 Castlereagh Street, Sydney NSW 2000 | GPO Box 4703, Sydney NSW 2001 Australia Tel +61 2 9230 7400 | Fax +61 2 9230 7444 | info-au@goodman.com | www.goodman.com Goodman Limited ABN 69 000 123 071 Goodman Funds Management Limited ABN 48 067 796 641 AFSL Number 223621 as responsible entity of Goodman Industrial Trust ARSN 091 213 839

the world, in particular China and Western Europe. To highlight this, in China we now have over 400,000 sqm of commenced developments and secured land sites.” Mr Goodman said.

Management

Overall, third party assets under management (AUM) were $11.6 billion at the end of the half, remaining stable on a constant currency basis. Management earnings represented 11% of EBIT and were in line with expectations.

The Group’s managed fund platform is well positioned with $1.1 billion in uncalled equity available and $1.2 billion in undrawn debt lines across the managed fund platform. New committed equity of $1.5 billion was raised in the first half, providing funding for the bid for IIF, and capital to fund the growth of our Goodman European Logistics Fund and Goodman Property Trust (GMT) in New Zealand. Separately, Goodman Australia Industrial Fund completed $1.5 billion of refinancing activities, while GMT undertook a $45 million private placement of bonds to institutional investors.

“The quality of Goodman’s operating platform and the strength of our relationships with global investor groups enable us to attract third party capital and participate in opportunities to deliver value across our managed fund platform.

We continue to see positive commitments flow from our global investor partners allocating capital to core real estate assets and managers with operating businesses. This is particularly evident in our Asian and European markets and will facilitate the medium-term growth of those businesses.” Mr Goodman said.

Capital Management

The Group is committed to maintaining a sound financial position and has further strengthened its balance sheet over the half year period. Gearing has been maintained at 24.5% and interest cover is at 4.8 times.

Available liquidity is currently $1.45 billion and the Group has a weighted average debt maturity profile of 3.7 years. Debt maturities are fully covered to FY2013.

During the period, the Group completed a US$325 million senior, unsecured note issue with a 10 year term, underscoring its commitment to exploring a range of capital sources and opportunities to diversify its funding sources and lengthen the term of its debt maturities.

Outlook

With Goodman’s known development and management activities and the strengthening contribution from its Asian and European businesses, the Group is well positioned to deliver a 2011 full year operating profit after tax of $380 million, equating to operating EPS of 5.5 cents.

- ENDS -

Level 10, 60 Castlereagh Street, Sydney NSW 2000 | GPO Box 4703, Sydney NSW 2001 Australia Tel +61 2 9230 7400 | Fax +61 2 9230 7444 | info-au@goodman.com | www.goodman.com Goodman Limited ABN 69 000 123 071 Goodman Funds Management Limited ABN 48 067 796 641 AFSL Number 223621 as responsible entity of Goodman Industrial Trust ARSN 091 213 839

For further information, please contact Goodman: Gregory Goodman Group Chief Executive Officer Tel +61 2 9230 7400

About Goodman

Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Europe and the United Kingdom. Goodman Group, comprised of the stapled entities Goodman Limited and Goodman Industrial Trust, is the largest industrial property group listed on the Australian Securities Exchange and one of the largest listed specialist fund managers of industrial property and business space globally.

Goodman’s global property expertise, integrated own+develop+manage customer service offering and significant fund management platform ensures it creates innovative property solutions that meet the individual requirements of its customers, while seeking to deliver longterm returns for investors

For more information please visit www.goodman.com

Level 10, 60 Castlereagh Street, Sydney NSW 2000 | GPO Box 4703, Sydney NSW 2001 Australia Tel +61 2 9230 7400 | Fax +61 2 9230 7444 | info-au@goodman.com | www.goodman.com Goodman Limited ABN 69 000 123 071 Goodman Funds Management Limited ABN 48 067 796 641 AFSL Number 223621 as responsible entity of Goodman Industrial Trust ARSN 091 213 839