GOODMAN GROUP — Regulatory Filings 2012

Mar 14, 2012

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Goodman notes Moody’s ratings upgrade

Date 15 March 2012 Release Immediate

Please refer to the attached release by Moody’s which upgrades Goodman’s issuer and senior unsecured ratings to Baa2 from Baa3. In addition, the subordinated rating on Goodman’s hybrid securities (Goodman PLUS) has been raised from Ba2 to Ba1. The outlook is stable.

For further information, please contact Goodman: Greg 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 long-term returns for investors.

For more information please visit www.goodman.com

Level 17, 60 Castlereagh Street, Sydney NSW 2000 | GPO Box 4703, Sydney NSW 2001 Australia Tel +61 2 9230 7400 | Fax +61 2 9230 7444 | info@goodman.com | www.goodman.com Goodman Limited ABN 69 000 123 071 Goodman Funds Management Limited ABN 48 067 796 641 AFSL Number 223621

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Rating Action: Moody's upgrades Goodman to Baa2, stable outlook

Global Credit Research - 14 Mar 2012

Sydney, March 14, 2012 -- Moody's Investors Service has today raised to Baa2 from Baa3 Goodman Group's ("Goodman") issuer and senior unsecured ratings. In addition, the subordinated rating on Goodman's hybrid securities has been raised from Ba2 to Ba1. The outlook is stable.

RATINGS RATIONALE

"Goodman's Baa2 rating reflects continued progress made by Goodman in creating a sustainable, long term, prudent business platform", said Maurice O'Connell, a Moody's Senior Analyst. "The current rating incorporates an expectation that Goodman's financial as well as business profile will be sustained in its current form", added O'Connell.

"The rating reflects Goodman's business model being better placed than in previous years to cope with adverse economic developments as a result of the group's establishment of relationships with capital partners as well as a strong focus on pre-sold and pre-committed developments".

In particular, Moody's expects that Goodman will maintain gearing at present levels, consistent with its demonstrated progress in de-risking its business model via lower gearing and a less aggressive approach to its development activities. Moody's expects the ratio of Net Debt/EBITDA to trend around 6 times in the next 2-3 years, a level that is supportive of the Baa2 rating.

The stable outlook reflects Moody's view that the current operating model is sustainable with development activity being undertaken in a prudent manner and via funds or capital partners funded substantially through retained earnings.

Goodman's Baa2 issuer and senior unsecured ratings are driven by the group's portfolio of directly and indirectly owned high quality and well-diversified industrial property assets, its track record and established client relationships within its funds platform, and its leading market position as a developer of industrial property assets. The rating also reflects our view that earnings will be inherently more volatile at Goodman than at a traditional REIT -- given the quantum of its funds management and development business, and the higher leveraged nature of around 40% of its gross rental income derived from its cornerstone investments -- and that its gearing should therefore be commensurately lower at any given rating level compared to traditional REITs.

The group's ratings could be considered for an upgrade if look-through Net Debt/EBITDA ratio falls below 4 times (and 2.5 times at the headstock level), and look-through fixed charge coverage rising above 4 times on a sustained basis. When considering these metrics, Moody's would exclude any profit from asset recycling. In addition, Moody's would look for Goodman to maintain a well-laddered debt maturity profile that is more consistent with its asset structure.

Downward rating pressures could eventuate if its look-through Net Debt/EBITDA ratio rose above 6.5 times (or headstock to above 5 times), and look-through fixed charge coverage fell below 2.2 times on a consistent basis. A material deterioration in the group's liquidity position (through a material reduction in available liquidity or build-up of short-term debt maturities), or evidence of meaningful increase in development risk or the emergence of financial support for its managed funds, could also lead to rating pressures.

The principal methodology used in rating Goodman Group was Moody's Approach for REITs and Other Commercial Property Firms published in July 2010. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

The Global Scale Credit Ratings on this press release that are issued by one of Moody's affiliates outside the EU are endorsed by Moody's Investors Service Ltd., One Canada Square, Canary Wharf, London E 14 5FA, UK, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that has issued a particular Credit Rating is available on www.moodys.com.

For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in

a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

Information sources used to prepare the rating are the following: parties involved in the ratings, public information, and confidential and proprietary Moody's Investors Service information.

Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.

Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see the ratings disclosure page on www.moodys.com for general disclosure on potential conflicts of interests.

Please see the ratings disclosure page on www.moodys.com for information on (A) MCO's major shareholders (above 5%) and for (B) further information regarding certain affiliations that may exist between directors of MCO and rated entities as well as (C) the names of entities that hold ratings from MIS that have also publicly reported to the SEC an ownership interest in MCO of more than 5%. A member of the board of directors of this rated entity may also be a member of the board of directors of a shareholder of Moody's Corporation; however, Moody's has not independently verified this matter.

Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.

Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history.

The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Maurice O'Connell Vice President - Senior Analyst Corporate Finance Group Moody's Investors Service Pty. Ltd. Level 10 1 O'Connell Street Sydney NSW 2000 Australia JOURNALISTS: (612) 9270-8102 SUBSCRIBERS: (612) 9270-8100

Terry Fanous Managing Director Corporate Finance Group JOURNALISTS: (612) 9270-8102 SUBSCRIBERS: (612) 9270-8100

Releasing Office: Moody's Investors Service Pty. Ltd. Level 10 1 O'Connell Street Sydney NSW 2000 Australia JOURNALISTS: (612) 9270-8102 SUBSCRIBERS: (612) 9270-8100

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