GROWTHPOINT PROPERTIES AUSTRALIA — Capital/Financing Update 2017

Apr 18, 2017

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19 April 2017

ASX ANNOUNCEMENT GROWTHPOINT PROPERTIES AUSTRALIA (ASX Code: GOZ)

Further leasing success

Growthpoint Properties Australia ( “Growthpoint” ) is pleased to announce an 8 year lease extension to Orora Limited at 109 Burwood Road, Hawthorn, Victoria and a 7 year lease extension to PFD Food Services Pty Ltd at 1500 Ferntree Gully Road, Knoxfield, Victoria.

Growthpoint has now completed 35,666 square metres (sqm) of additional leasing since 31 December 2016. Full details are included in the table overleaf.

Lease to Orora Limited

The current lease to Orora of 4,898 sqm was due to expire in June 2018. A replacement 8 year lease of 4,358 sqm commencing from 14 June 2017 has been entered into. The lease provides for fixed rent increases of 3.25% per annum.

Since the time of announcing the takeover of the GPT Metro Office Fund (GMF) on 1 July 2016, the weighted average lease expiry at 109 Burwood Road, Hawthorn, has increased from 4.7 years to 6.4 years, and occupancy has increased to 85%.

Lease to PFD Food Services Pty Ltd

The previous lease to PFD of 2,985 sqm was due to expire in August 2019. A 7 lease term extension commencing on 1 September 2019 has been entered into, and now expires in August 2026. The lease is for office space on the site and provides for fixed rent increases of 3.25% per annum.

	Growthpoint’s Key Metrics	Growthpoint’s Key Metrics
	at 31 March 20171
	Total property portfolio		$3.1 billion
	value
	Distribution guidance FY17Number of properties		21.5 cents57
	Office / industrial		65% / 35%
	Average property age		9.5 years
	Occupancy		98%
	Weighted average lease		6.2 years
	expiry
	Weighted average rent		3.2%
	review
	(assumes CPI of 1.5%)
	Weighted average		6.7%
	capitalisation rate
	NTA per stapled security		$2.72
	(as at 31 December 2016)
	Balance sheet gearing		39.4%
	(pro forma after asset
	sales referred to in ASX
	announcement of 5 April
	2017)
	Percentage debt fixed		>75%
	(post settlement of USPP
	in June 2017)
	Average debt maturity post		5.3 years
	settlement of USPP
	(pro forma 31 December2016)
	Average NABERS rating		4.4 stars
	(energy)

Growthpoint’s Managing Director, Timothy Collyer, said:

“We are very pleased to announce lease extensions to two high quality tenants, Orora and PFD Food Services.

Leasing completed since 31 December 2016 has extended the weighted average lease expiry of Growthpoint’s property portfolio to 6.2 years, and further reduced the potential near term expiries (24 months) to 6% of the portfolio. This is a terrific outcome for the Group.

This further leasing success again demonstrates the attractiveness of Growthpoint’s property portfolio and the Group’s strategy to negotiate lease extensions with major tenants ahead of expiry, to maintain a long-term, secure, rental cash flow from the property portfolio. Over 98% of the portfolio is leased to government, listed, or large private companies.”

1 Includes the sale of assets as per ASX announcement dated 5 April 2017, and leasing update as per ASX announcement dated 10 April 2017

Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409

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Leasing undertaken since 31 December 2016

Property	Sector	Tenant	Start	Term	Annual	Net	Car
			date		rent	lettable	parks
					increases	area
						(sqm)
A4, 52 Merivale Street, South
Brisbane, Qld	Office	Subway Realty	Q3, FY17	7.0	4.00%	81	-
333AnnStreet,Brisbane, Qld	Office	FrontierSoftware	Q3,FY17	6.2	4.00%	333	4
102 Bennelong Parkway,		Charles Sturt			Not
Sydney Olympic Park, NSW	Office	University	Q4, FY17	1.0	applicable	470	11
		Guardian
Building C, 211 Wellington		Community Early
Road, Mulgrave, Vic	Office	Learning Centres	Q4, FY17	10.0	3.25%	922	57
109 Burwood Road, Hawthorn,
Vic	Office	Orora Limited	Q4, FY17	8.0	3.25%	4,358	190
					Greater of
120 Link Road, Melbourne		The Workwear			CPI &
Airport,Vic	Industrial	Group	Q1,FY18	10.0	3.5%	26,517	135
1500 Ferntree Gully Road,	Office/
Knoxfield, Vic	Industrial	PFD Food Services	Q1, FY20	7.0	3.25%	2,985	-
**Total / Weighted Average **	-	-	-	8.4	3.4%	35,666	397

Media and investor enquiries should be directed to:

Aaron Hockly, Chief Operating Officer, Growthpoint Properties Australia Telephone: +61 8681 2900, info@growthpoint.com.au

Growthpoint Properties Australia

Growthpoint Properties Australia is a publicly traded ASX listed A-REIT (ASX Code: GOZ) that specialises in the ownership and management of quality investment property. After allowing for recently announced transactions, Growthpoint owns interests in a diversified portfolio of 57 office and industrial properties throughout Australia valued at approximately $3.1 billion and has an investment mandate to invest in office, industrial and retail property sectors.

Growthpoint is included in the S&P/ASX 200 Index and has been issued with an investment grade rating of Baa2 for senior secured debt by Moody’s.

Growthpoint aims to grow its portfolio over time and diversify its property investment by asset class, geography and tenant exposure through individual property acquisitions, portfolio transactions and corporate activity (M&A transactions) as opportunities arise.

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