GOODMAN GROUP — Interim / Quarterly Report 2010

Nov 14, 2010

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Goodman quarterly operational update – September 2010

Date 15 November 2010 Release Immediate

Goodman Group (Goodman or Group) has today announced an operational update for the quarter ended 30 September 2010. Key operational highlights for the period are:

• • 400,000 sqm leased across the Group and managed funds with 3.2% rental growth, representing $38.7 million of net property income
• • Stable occupancy at 95% for the direct portfolio and 93% across the Group and managed funds with a weighted average lease expiry of 5.3 years
• • $235 million of new development commitments secured during the quarter, with a further $252 million of new commitments secured post 30 September
• • 94% pre-committed and 100% pre-sold on new commitments[1 ]
• • Assets under management stable at $12.7 billion on a constant currency basis
• • New initiatives announced (post 30 September) relate to the privatisation of J-REP (Japan) and ING Industrial Fund
• • A range of new capital management initiatives including:

• Completed US$325 million bond issue in the United States 144A/Reg S bond market

• €300 million fully underwritten equity raising for Goodman European Logistics Fund

• A$268 million of land sales in Hong Kong and the United Kingdom

Goodman Group Chief Executive Officer, Mr Greg Goodman said, “Today’s quarterly update highlights the solid start that the Group has made in the 2011 financial year. The range of initiatives undertaken during the period reflects the momentum that continues to build across our operations and demonstrates that Goodman is well positioned to capitalise on high quality opportunities. Accordingly, we reaffirm our operating EPS guidance of 5.3 to 5.5 cents.”

More information is available in the attached presentation.

• ENDS –

1Subject to final legal documentation and due diligence

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

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

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

Goodman Group Operational update Q1 – FY2011 November 2010

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building momentum + delivering opportunities

Contents

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• Section 1 Key Achievements + Section 2 Own + Section 3 Develop + Section 4 Manage + Section 5 Corporate

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Key achievements

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	+	Occupancy stable at 93% – direct portfolio occupancy at 95%
Own	+	Retention at 73% and WALE of 5.3 years
	+	~0.4 million sqm leased during the quarter - representing $38.7 million of net property income across the Group and
		managed funds platform
	+	Development commitments of $235 million for Q1 FY2011 in line with expectations
	+	Secured a further $252 million of commitments post the end of the quarter
Develop	+	WIP at $1.4 billion with a forecast yield on cost of 8.9%
	+	94% of new projects pre-committed and 100% pre-sold1
	+	Actively managing land bank with over $268 million in land sales
	+	External Assets Under Management (AUM) stable at $12.7 billion on a constant currency basis
	+	Launched new initiatives – proposed J-REP and IIF privatisations
Manage
	+	€300 million equity raise for GELF, underwritten by APG, PGGM and Goodman
	+	Fund capital management – de-risking balance sheet, enhancing fund flexibility and liquidity
Corporate	+	Inaugural US$325 million senior, unsecured note issue in the US 144A/Reg S bond market
	+	FY2011 EPS guidance reaffirmed at 5.3 to 5.5 cents on a fully diluted basis

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1Subject to final legal documentation and due diligence

Own: Leasing

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Across the Group and Funds platform:

• • ~400,000 sqm leased during the quarter
• • Leasing rental growth of 3.2% achieved
• • Minimal rental arrears and tenant defaults

Division	Leasing area (sqm)	Net annual rent (A$m)	Average lease term (yrs)	Occupancy at 30
				September 2010 (%)
Australia – Direct	46,633	7.3	4.0	97
Australia – GAIF	106,564	9.9	5.7	96
New Zealand – GMT	34,212	4.5	4.1	95
Hong Kong – GHKLF	87,478	8.5	2.6	95
China - GCLH	18,030	1.2	2.7	99
UK/Europe - Direct	829	0.2	6.1	84
UK – ABPP	2,302	0.5	7.9	89
Europe – GELF	110,199	5.9	3.5	96
Europe - GEBPF	4,414	0.7	5.0	66
Total	410,661	38.7	4.1	94

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Own: Leasing

Germany – Bremen

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[Photo
TBC]
[Photo
TBC]
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Customer	BLG
Lettable area	61,025 sqm
Lease term	3 years
Contracted owner	GELF
Rent	$3.1m pa

Australia – Chifley Business Park

Customer	Coca-Cola Amatil
Lettable area	12,235 sqm
Lease term	5 years
Contracted owner	GAIF
Rent	$0.9m pa

Hong Kong – Dynamic Cargo

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Customer	Fuji Xerox (HK)
Lettable area	10,819 sqm
Lease term	5 years
Contracted owner	GHKLF
Rent	$1.1m pa

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Australia – Acacia Link Industrial Estate

	Customer	Ceva Freight Australia
	Lettable area Lease term Contracted owner	9,712 sqm 3 years GAIF	[Photo TBC]
	Rent	$1.1m pa

Australia – Lidcombe Business Park

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Customer	Commonwealth Bank
Lettable area	8,068 sqm
Lease term	5 years
Contracted owner	GMG
Rent	$2.3m pa

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Netherlands – Waddinxveen

Customer	Royal Mail
Lettable area	7,255 sqm
Lease term	10 years
Contracted owner	GELF
Rent	$0.6m pa

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Develop

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Q1 FY2011 Developments	Completions	Commitments	Work in progress
Value ($M)	40	235	1,352
Area (mil sqm)	0.04	0.19	0.72
Yield (%)	11.1	8.5	8.9
Pre-committed (%)	100	94	73
Weighted average lease term (years)	6.4	9.8	9.7
Development for third parties or funds (%)	84	1001	78
Asia Pacific (%)	11	76	71
UK/Europe (%)	89	24	29

1Subject to final legal documentation and due diligence

Work in progress	On balance sheet	Third party funds	Total end value	Third party funds
by region	end value	end value		% of total
	$M	$M	$M
Asia Pacific	293	662	956	69%
Europe	-	397	397	100%
Total	293	1,059	1,352	78%

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Develop: Project update

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Germany - Malsch

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Seifert Logistik
Customer Dienstleistung
GmbH
Lettable area 46,032 sqm
Lease term (yrs) 7 years
Owner CBRERT UK
PC Date April 2011
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China - Kunshan

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Customer Spec
Lettable area 36,415 sqm
Lease term N/A
Owner GCLH
PC Date June 2011
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Australia – Oakdale Industrial Estate

Hong Kong – Interlink

• • 42% of contracted work complete

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Customer DHL
Lettable area 36,165 sqm
Lease term (yrs) 10
50% GAIF /
Owner
50% Brickworks
PC Date May 2011
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• • Heads of Agreement signed and under option for a further 20% of lettable area

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Customer Various
Lettable area 52,500 sqm
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Develop: Sales

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• Proceeds recycled to enhance investor returns and facilitate future commercial development opportunities.

UK - Hammersmith

Sale of residential land to St George/Berkeley Group

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Area 2.9 hectares
Contracted seller 100% ABPP
St George /
Purchaser
Berkeley Group
Disposal value A$137m
Strategy Vacant land
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UK – Browns Lane

Sale of residential land adjacent to logistics site following completion of infrastructure works on the full site

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Area 5.3 hectares
Contracted seller GMG
Purchaser Taylor Wimpey
Disposal value A$13m
Strategy Residential land
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Hong Kong – Seaview

Sale of non income producing land to redeploy capital across the Greater China business

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Area 8,473 sqm
50% GMG and
Contracted seller
50% GHKLF
Billion
Purchaser
Developments Ltd
Disposal value ~A$118m
Strategy Vacant land
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Manage: Fund summary

	Goodman’s Asia Pacific managed funds1	Goodman’s Asia Pacific managed funds1	Goodman’s Asia Pacific managed funds1	Goodman’s Asia Pacific managed funds1	Goodman’s Asia Pacific managed funds1	Goodman’s Asia Pacific managed funds1	Goodman’s Asia Pacific managed funds1	Goodman’s Asia Pacific managed funds1
	GAIF	GMT	GHKLF	MGJLF			GCLH	GADF2
Total assets (billion)	A$4.4	A$1.2	A$1.4	A$0.7			A$0.2	A$0.07
Number of properties	107	21	15	15			4	1
Number of customers	361	220	179	20			16	1
Occupancy	96%	95%	95%	91%			99%	100%
Weighted average lease expiry (yrs)	6.4	5.5	2.8	6.83			3.7	15

	Goodman’s Europe managed funds1	Goodman’s Europe managed funds1	Goodman’s Europe managed funds1	Goodman’s Europe managed funds1	Goodman’s Europe managed funds1
	GELF	GEBPF	ABPP	CBRERT UK	CBRERT CE
Total assets (billion)	A$1.8	A$0.4	A$2.1	A$0.04	A$0.04
Number of properties	82	6	28	2	2
Number of customers	66	134	140	2	2
Occupancy	96%	66%	89%	100%	100%
Weighted average lease expiry (yrs)	5.0	2.63	8.13	6.5	3.9

1All figures quoted as at 30 September 2010

2 GADF was launched in May 2010, figures stated are based on the seed property being acquired at practical completion (post September 2010)

3 WALE of leased portfolio to next break as at 30 September 2010

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Manage: Fund capital management initiatives

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+ Goodman Australia Industrial Fund (GAIF)

• Refinance of $250 million CMBS completed with Challenger

• Capital Management Strategy implementation underway – debt extension and restructure for long term commenced

+ Goodman NZ Property Trust (GMT)

• DRP underwritten for September quarter with strong demand

• Renewal and extensions on NZ$355 million of bank debt facilities

• Bond issue of NZ$45 million completed with good follow on demand

+ Goodman Hong Kong Logistics Fund (GHKLF)

• New seven year HK$1.1 billion facility completed. Next expiry not until late 2013

• Strong demand from existing investors for units being acquired in the secondary market

• Seaview sold for HK$875 million

• The Fund is now in a strong liquidity and balance sheet position

+ Goodman European Logistics Fund (GELF)

• €300 million equity raising, structured with two major external underwriters (€150 million APG and €100 million PGGM minimum allotment) and €50 million GMG (scalable subject to demand)

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Corporate

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US$325 million senior, unsecured note issue

• • Successfully priced inaugural US$325 million debt issue in the United States 144A/Reg S bond market
• • Effective fixed interest coupon of 6.375% for a term of ten years
• • Extends the debt maturity profile of the Group and diversifies sources of capital
• • Additional bank funding facilities, retaining liquidity at $1.5 billion

IIF Transaction

• • Goodman led consortium has submitted an indicative, conditional and non-binding cash offer for IIF
• • Indicative Offer remains subject to the completion of due diligence, receipt of required consents and final approvals of the consortium members

Europa Capital JV

• • Establishment of a joint venture between Goodman and Europa Capital to acquire land sites suitable for the development of distribution and logistics property across the UK
• • The development joint venture will actively seek to recycle assets and has the capacity to invest up to £60m at any given time

J-REP

• • Macquarie Goodman Japan Pte Ltd (MGJ), a 50/50 joint venture between Goodman Group and Macquarie Group, has lodged a proposal with Japanese regulatory authorities to strengthen its Japanese logistics offering, conducted via J-REP
• • The transaction consists of:
• • Establishment of a new fund, Japan Logistics Development Vehicle, seeded with a precommited development for Nippon Express
• • Provision of a loan and accompanying warrants to J-REP for the purpose of providing development funding
• • A tender offer bid to J-REP shareholders available for acceptance until 1 December 2010
• • Rebranding J-REP to Goodman at the appropriate time

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thank+ you

Important Notice This document has been prepared by Goodman Group (Goodman International Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641) (AFSL 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839)). The details in this presentation provide general information only. It is not intended as investment or financial advice and must not be relied upon as such. You should obtain independent professional advice prior to making any decision. This presentation is not an offer or invitation for subscription or purchase of securities or other financial products. This presentation does not constitute an offer of securities in the United States. Securities may not be offered of sold in the United States unless they are registered under the US Securities Act of 1933 or an exemption from registration is available. Past performance is no indication of future performance. All values are expressed in Australian currency unless otherwise stated. November 2010.

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