GOODMAN GROUP — Management Reports 2010

Mar 30, 2010

==> picture [91 x 91] intentionally omitted <==

31 March 2010

The Manager Company Notices Section ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000

Dear Sir

GOODMAN GROUP (GOODMAN) INVESTOR NEWSLETTER TO SECURITYHOLDERS

The attached Goodman investor newsletter was dispatched to Securityholders today.

Please contact the undersigned in relation to any queries.

Yours sincerely

==> picture [90 x 55] intentionally omitted <==

Carl Bicego Company Secretary

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 for Goodman Industrial Trust ARSN 091 213 839

March 2010

investor

==> picture [32 x 32] intentionally omitted <==

==> picture [80 x 72] intentionally omitted <==

Welcome to our first newsletter

I am pleased to present Goodman Group’s new newsletter, investor insight+ which we have introduced to give Securityholders an overview of recent events, announcements and activities that have been undertaken across the Group.

In this edition, we provide an overview of Goodman’s results for the half year ended 31 December 2009, and review some of the major development announcements we have made in recent months. We also update you on our sustainability initiatives and answer some of your frequently asked questions.

If you would like to view an online version of investor

inside+

Half year results 2 Developments 4 Sustainability 6 Q&A 7 Upcoming key dates 8 Securityholder info 8

insight+, which contains interactive features, such as video footage of the groundbreaking and signing event for our Interlink development in Hong Kong, please visit GMG Investor Centre on www.goodman.com.

I hope you find investor insight+ informative and I welcome any feedback you may have on this newsletter.

==> picture [121 x 122] intentionally omitted <==

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

02
Half year results
----- End of picture text -----

Greg Goodman Group Chief Executive Officer

‘‘Our first half activities have established a solid platform for growth’’

==> picture [121 x 122] intentionally omitted <==

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

06
Sustainability
----- End of picture text -----

==> picture [121 x 122] intentionally omitted <==

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

04
Developments
----- End of picture text -----

half year results overview+

$139m

operating profit

2.8 cents

1.5 cents

earnings per distribution security per security

$12.6b

external assets under management

financial results

Goodman achieved an operating profit after tax of $139 million for the first half of the 2010 financial year, which is consistent with the guidance that we issued in August 2009.

We have also reaffirmed our full year guidance for an estimated operating profit after tax of $310 million, equating to 5.7 cents per security on an undiluted basis and an expected distribution of 3.4 cents per security.

We have also reaffirmed our While the Group reported a full year guidance for an statutory loss of $500 million estimated operating profit for the half year ended after tax of $310 million, 31 December 2009, primarily equating to 5.7 cents per reflecting property and security on an undiluted basis equity revaluations, we now and an expected distribution consider that valuations in our of 3.4 cents per security. core markets have stabilised. This is evidenced by The first half of the year increased investor demand was a transition period for and the growing number of Goodman. We addressed transactions taking place, the key financial challenges providing a more transparent we were presented with view of property values. following the global economic downturn and sought to refine our business model and position the Group well for the future.

At a Group level, the recapitalisation undertaken in August 2009 has substantially improved our financial position over the half year period. Our gearing, measured as net debt (or total debt less cash) divided by total assets less cash, has reduced to 25%. The available liquidity as at 31 December 2009 of $1.4 billion is sufficient to meet all of our debt maturities until the first half of FY2013.

outlook

Our first half activities have established a solid platform for growth. We have refocused on our core business activities and on leveraging our leading market position, global investor relationships and global operating platform. We are well placed to continue building momentum across all of our business activities and to grow value for all of the Group’s stakeholders.

2

==> picture [596 x 679] intentionally omitted <==

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

operations The operating momentum across Goodman’s key markets Please see the ‘Reactivating our development business’ currently being explored with these investor groups.
in Asia Pacific and Europe feature on pages 4 and 5 for
Goodman’s global managed
continues to build. This has more details.
fund platform is well positioned
been supported by the
An important feature of our for growth following the
reactivation of our development
commenced development completion of a number of
business on a prudent pre-
projects is that we have capital management initiatives.
committed, pre-funded basis.
secured or identified third party $0.7 billion of new equity was
We have also continued to
funding, reducing Goodman’s raised during the half year with
see stable underlying property
exposure to debt and risk. further growth expected over
fundamentals, with our core
As we move forward, we will the remainder of FY2010.
investment portfolio recording
seek to continue matching the Highlights for the half year
94% occupancy at a weighted
funding of our development include the $320 million capital
average lease expiry of
pipeline against new capital raising in the Goodman
5.6 years.
from our equity partners. Australia Industrial Fund and
The reactivation of our the NZ$150 million bond issue
With valuations having
development business saw by Goodman Property Trust in
Goodman commence a stabilised globally, fund New Zealand.
investors are again entering the
number of new development
projects during the first half to market for high quality, well
managed property investment
the value of $0.7 billion. We
products, which offer attractive
were able to achieve a 100%
pricing. The strength of
leasing pre-commitment on
Goodman’s relationships with
all projects, except Interlink
global investor groups is a
in Hong Kong which is 50%
significant advantage that
pre-leased and optioned
provides us with access to
to two major international
capital, the ability to explore
customers. The positive
opportunities, and to grow our
momentum has continued into
the second half of the financial funds under management. We
expect to attract new equity to
year, with a further $0.3 billion
the Group this year based on
of new developments
some of the initiatives that are
commencing since January.
China/Hong Kong
goodman
Europe/UK$6.0b in assets $1.8b in assets20 properties stats
137 properties 251 people
285 people
Japan [1]
$0.7b in assets
15 properties
Australia
Total $6.5b in assets
$16.2b in assets 138 properties
178 people
331 properties
751 people [1] New Zealand
$1.2b in assets
21 properties
37 people
As at 31 December 2009 (Australian currency).
1. J-REP is Goodman’s platform in Japan and is a 50/50 strategic alliance between Goodman and Macquarie (Macquarie Goodman Japan), which owns 53% of J-REP.
----- End of picture text -----

investor relations 3

reactivating our development business+

==> picture [535 x 292] intentionally omitted <==

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

new
projects
----- End of picture text -----

The Group foreshadowed three major development opportunities at last year’s Annual General Meeting, which have subsequently been announced together with a further three new development projects.

We are pleased to provide Securityholders with an overview of each of these developments, which highlight the renewed activity within this important part of our integrated business model.

==> picture [87 x 88] intentionally omitted <==

Interlink – Hong Kong In early December, we announced together with our Hong Kong Logistics Fund, the construction of Interlink, a 222,000 sqm landmark warehouse and distribution development in Hong Kong’s Tsing Yi port district.

With a completion value of more than HK$4 billion (circa A$600 million), Interlink will be designed to high technical and environmental specifications. It will be one of Hong Kong’s most modern and efficient warehousing and distribution centres when completed in January 2012. A virtual tour of Interlink can be taken at www.interlinkhongkong.com.

Around half of Interlink’s gross lettable area (GLA) has been pre-leased and optioned to two leading global logistics operators, DHL Supply Chain (Hong Kong) Limited and Yusen Air & Sea Services (Hong Kong) Limited. The remaining GLA is attracting considerable interest with negotiations currently taking place with other logistics operators, equivalent to 77% of Interlink’s GLA.

On 3 March, we hosted a groundbreaking and signing event for Interlink. The event attracted a great deal of media interest and was attended by more than 170 people, including Goodman’s Group Chief Executive Officer, Greg Goodman, and Chairman, Ian Ferrier, senior representatives from DHL Supply Chain and Yusen, as well as a number of prospective customers, journalists and agents. The event demonstrated the quality and strength of our customer relationships within the region, the high level of interest in the Interlink development, and was a tangible way of marking the Group’s commitment to Asia and our strategic expansion in Hong Kong and China.

Above – left and top right: Interlink artists’ impressions. Above – bottom right: Victor Mok (DHL), Greg Goodman and Yasuhiko Nojima (Yusen).

4

==> picture [122 x 118] intentionally omitted <==

Kmart – Melbourne

Goodman confirmed in January, that it would construct a new 76,735 sqm facility at Interchange Industrial Estate, Hoppers Crossing in Melbourne, on behalf of Kmart.

The new facility will be strategically positioned in close proximity to major road infrastructure and the Port of Melbourne. The new development will enable Kmart to combine the functions of two existing facilities and to service its stores Australia wide, with a major focus on Victoria, South Australia, Tasmania and the Northern Territory.

Kmart has pre-committed to a 15 year lease plus options at the new facility, which is expected to be completed in February 2011, with an end value of approximately $65 million.

Staples – Växjö, Sweden

In late January, we also announced the Group’s first development in Sweden, a 21,581 sqm pre-committed distribution centre on behalf of Staples (formerly Corporate Express), the world’s largest office products company.

==> picture [122 x 118] intentionally omitted <==

==> picture [122 x 118] intentionally omitted <==

Toll IPEC has pre-committed to a 15 year lease on the new facility and the deal includes an option over a further 8,063 sqm of land suitable for its future expansion. Toll IPEC currently occupies more than 330,000 sqm in a number of Goodman facilities across Australia, and this announcement emphasises our strong, well established relationship.

The new distribution centre will enable Staples to consolidate its existing warehouse operations in Växjö and Borås into a single facility that will also benefit from a number of energy efficient and sustainable features, including extra insulation, and an energy efficient lighting system.

It was also announced that Goodman had separately agreed terms to sell the completed development to Swedish investor, Hemfosa Fastigheter for SEK 140 million (circa A$21 million).

The Co-operative Group – Andover, UK

In March, we confirmed that the development of a preleased 43,484 sqm regional distribution centre (RDC) would be undertaken for The Co-operative Group, one of the UK’s largest food retailers, on a 20 year lease.

Toll IPEC – Perth

A 16,295 sqm distribution Co-operative Group, one of centre is being developed the UK’s largest food retailers, for Toll IPEC at Stockyards on a 20 year lease. Industrial Estate in Hazelmere, Perth which is owned by The RDC to be constructed Goodman’s Australia Industrial at Andover Commercial Park, Fund. The development was Hampshire has a forecast value announced in early February on completion of £47.2 millon and will have an estimated (circa A$77.7 million) and is value on completion of one of the largest pre-lease $36.2 million. transactions to be announced The new distribution centre in the UK over the last will incorporate a range of 12 months. It will allow The sustainable design initiatives Co-operative Group to reshape and will become the regional its distribution network within hub for Toll IPEC’s Western this part of southern England.

The new distribution centre will incorporate a range of sustainable design initiatives and will become the regional hub for Toll IPEC’s Western Australian operations, enhancing its ability to service its customers in all parts of the state.

==> picture [122 x 118] intentionally omitted <==

Kmart – Auckland, New Zealand

We also announced in March that a second development would be commenced this year on behalf of Kmart. The latest development is for a 13,400 sqm warehouse and office facility at M20 Business Park (M20) in Auckland, which will become Kmart’s principal distribution hub for its New Zealand operations.

The facility is expected to be completed in early 2011, with an estimated total project cost of NZ$19.2 million (circa A$14.8 million), with Kmart pre-committing to a 12 year lease.

M20 forms part of Goodman Property Trust’s New Zealand portfolio and the Kmart development follows the announcement made last September that Ingram Micro had also committed to the development of a 10,355 sqm facility at M20.

==> picture [121 x 118] intentionally omitted <==

Top, left to right: Artists’ impressions of Kmart Melbourne – Australia, Staples, Växjö – Sweden, Toll Ipec, Perth – Australia, The Co-operative Group, Andover – UK. Bottom: Artist’s impression of Kmart, Auckland – New Zealand.

investor relations 5

sustainability+

==> picture [535 x 268] intentionally omitted <==

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

initiatives
----- End of picture text -----

• Goodman’s Herten

• In Australia, we are

6

Goodman from the sale of electricity back into the German electricity grid at above market rates.

• In Australia, the Coca Cola Amatil facility at M7 Business Park won the Development Excellence Award for Industrial Development at the annual Urban Taskforce Australia Awards in October. Goodman transformed what was previously a disused quarry site into a quality 31,702 sqm industrial facility featuring advanced architectural design and ecologically sustainable development principles, including a rain water harvesting system and a solar panel installation for renewable energy.

• In October, the CourierPost facility at Highbrook Business Park was recognised as the first building in New Zealand to achieve Green Star Certification for its environmentally sustainable design,

==> picture [105 x 104] intentionally omitted <==

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

q & a
----- End of picture text -----

==> picture [385 x 195] intentionally omitted <==

New Zealand and Above: The Coca Cola Amatil facility at M7 Business Park, Australia. Australia is now being collected and monitored to calculate the energy consumption and Greenhouse Gas emissions for the Group. We will use this information to set benchmarks and targets moving forward, and progressively introduce the collection and monitoring of energy consumption data to our other regions.

receiving four stars for best practice. The facility houses New Zealand’s largest courier operations centre and is capable of processing 18,000 items per hour. It has a number of features that maximise energy efficiency and reduce CO² emissions by 60% each year, when compared to a standard industrial building.

• • At a corporate level, Goodman’s energy consumption data in UK,

Q. Will any further distributions be paid in the 2010 financial year?

Q. Are further write-downs expected in Goodman’s assets across the countries in which you operate?

debt at conservative levels, proactively manage all debt expiries and closely manage operating costs across our business to maximise efficiencies. In our development business, we are focused on a pre-leased and prefunded approach and will seek to match our development pipeline with third party investor capital to minimise risk.

A. As part of Goodman’s half year results announcement, we reaffirmed that a total Distribution per Security (DPS) of 3.4 cents is expected to be paid for the full year ending 30 June 2010. An interim DPS of 1.5 cents was paid to Securityholders on 26 February 2010 for the half year ended 31 December 2009.

A. It is possible that further write-downs may occur, however we are seeing signs that the markets in which we operate have stabilised. We will provide a further update in August 2010 following the release of our full year results to the ASX.

Q. What is the Group’s gearing and liquidity position and how will you keep these at prudent levels?

==> picture [87 x 88] intentionally omitted <==

These estimates are for the full year and assume no material changes to market conditions and no further dilution from the exercise of options and hybrid securities. The distribution is reviewed by the Board at the end of each financial period.

A. The Group has a gearing ratio of 25% and $1.4 billion of liquidity. To retain our prudent gearing and liquidity position, we will continue to maintain

investor relations 7

securityholder information+

Key dates for 2010

21	June 2010	Announcement of estimated distribution
24	June 2010	Ex-distribution date
30	June 2010	Record date for distribution
19	August 2010*	Announcement of full year results
26	August 2010*	Distribution payment/Annual tax statement
25	November 2010*	Annual General Meeting

• Expected dates. Subject to confirmation.

Goodman Group Goodman Limited ABN 69 000 123 071

Goodman Industrial Trust ARSN 091 213 839

Responsible Entity

Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621

Offices

Registered office

Level 10 60 Castlereagh Street Sydney NSW 2000

GPO Box 4703 Sydney NSW 2001

Telephone: 1300 791 100 (within Australia) +61 2 9230 7400 (outside Australia) Facsimile: +61 2 9230 7444 Email: info-au@goodman.com Website: www.goodman.com

Securityholders can update the following information with Computershare online at www.investorcentre.com:

• change of address details;

• request to receive communication online;

• request to have payments made directly to a bank account; - provision of tax file numbers; or

• general queries about your securityholding.

Custodians

Trust Company Limited 35 Clarence Street Sydney NSW 2000

Perpetual Trustee Company Limited 123 Pitt Street Sydney NSW 2000

Auditor

KPMG

10 Shelley Street Sydney NSW 2000

ASX code

GMG

Security registrar

Computershare Investor Services Pty Limited Level 5 115 Grenfell Street Adelaide SA 5000

If you would like to provide any feedback on the investor insight+ newsletter, please email us at info-au@goodman.com.

GPO Box 1903 Adelaide SA 5001

Telephone: 1300 723 040 (within Australia) +61 3 9415 4000 (outside Australia) Facsimile: +61 8 8236 2305 Email: web.queries@computershare.com.au Website: www.computershare.com

This investor insight+ has been printed on Monza Satin. It contains 45% virgin fibre and 55% recycled fibre. It is manufactured by an ISO 14001 certified mill. Monza Satin is an FSC Mixed Sources Certified paper.

This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641; AFSL Number 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839)). It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with professional advice, when deciding if an investment is appropriate. This document is not an offer or invitation for subscription or purchase of securities or other financial products. This document does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or to any “US person” (as defined in Regulation S under the US Securities Act of 1933, as amended (Securities Act) (US Person)). Securities may not be offered or sold in the United States or to US Persons unless they are registered under the US Securities Act of 1933 or an exemption from registration is available. The stapled securities of Goodman Group have not been, and will not be, registered under the Securities Act or the securities laws of any state or jurisdiction of the United States. This document contains certain “forward looking statements”. The words “anticipate”, “believe”, “expect”, “project”, “forecast”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan” and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Due care and attention have been used in the preparation of forecast information. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Goodman Group. These may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. All values are expressed in Australian currency unless otherwise stated. Images contained in this document have been used to enable the visualisation of development concepts only and are not intended to definitively represent the final product. March 2010

8