REGION GROUP — Interim / Quarterly Report 2024

Oct 22, 2023

23 October 2023

ASX Announcement

RGN Operational Update

Region Group (ASX: RGN) announces an operational update for the period ended 30 September 2023. Details of the update are attached.

This document has been authorised to be released to the ASX by the Board of RGN.

ENDS

Media, Institutional investor and analysts, contact:

Evan Walsh Chief Financial Officer Region Group (02) 8243 4900

Security holders should contact the RGN Information Line on 1300 318 976 with any queries.

Level 6, 50 Pitt Street Sydney NSW 2000

regiongroup.au

Region RE Limited ABN 47 158 809 851 AFS Licence 426603 as responsible entity of Region Retail Trust ARSN 160 612 788 and as responsible entity of Region Management Trust ARSN 160 612 626

1

Market Update Q1 FY24

Moggill Village, QLDPage 1

Market Update – Q1 FY24

Tenant Performance

Non-discretionary tenants driving resilient sales and low arrears

Comparable Total Portfolio Sales Growth

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4.2% Supermarket MAT sales growth

6.2% Non- discretionary specialty tenant MAT sales growth

(%)

Sept 2023 MAT growth1 Jun 2023 MAT growth1		Q1 FY24 vs Q1 FY23
Supermarkets 4.2% 3.4%		3.6%
Discount Department Stores 4.1% 9.4%		(0.7%)
Mini Majors 0.6% 2.2%		2.0%
Specialties 4.3% 7.5%		1.2%
Total 4.1% 4.5%		2.8%

Comparable Specialty Sales Growth

(%)

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1.3% Arrears consistent with June 2023

Sept 2023 MAT growth1 Jun 2023 MAT growth1		Q1 FY24 vs Q1 FY23
Non-discretionary 6.2% 8.2%		4.1%
Discretionary 1.7% 7.1%		(2.9%)
Total 4.3% 7.5%		1.2%

1. Moving annual turnover measures the growth in sales over the last 12 months compared to the previous 12-months. Includes comparable sales reporting tenants trading over 24 months

Page 2

Market Update – Q1 FY24

Specialty Leasing Activity

Continued momentum in deals with positive leasing spreads

	Renewals	New Leases	Total
Deals	52	55	107
Average uplift (%)	4.7%	(1.2%)	1.4%

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107

Total deals completed in Q1 FY24

4.7%

Consistent leasing spreads from renewals

4.3%

Average fixed rent reviews on achieved deals

97.8% Portfolio occupancy

Pakenham Central, VIC

Page 3

Market Update – Q1 FY24

Collingwood Park Shopping Centre, QLD

Capital Recycling and Guidance

Capital Recycling

• 10 properties worth circa $200m identified for sale

• Collingwood Park Shopping Centre (QLD) recently contracted for sale at book value with a cap rate of 5.25%

• An on-market campaign will shortly be commencing for Leura Shopping Centre (NSW) and Drouin Central (VIC)

• Proceeds from these sales will initially be used to pay down debt. Further capital management initiatives are being considered

Earnings guidance

• FY24 guidance is maintained at:

• FFO of 15.6 cps

• AFFO of 13.7 cps

• Target distribution payout ratio of approximately 100% of AFFO

• Guidance assumes:

• No balance sheet acquisitions or growth in funds management platform

• No material change in market conditions

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For further information, please contact:

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Anthony Mellowes Chief Executive Officer T: +61 2 8243 4900 E: anthony.mellowes@regiongroup.au

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Evan Walsh Chief Financial Officer T: +61 2 8243 4900 E: evan.walsh@regiongroup.au

Disclaimer

This presentation has been prepared by Region RE Limited (ABN 47 158 809 851) as responsible entity of Region Management Trust (ARSN 160 612 626) (Management Trust) and responsible entity of Region Retail Trust (ARSN 160 612 788) (Retail Trust) (together, Region Group or the Group). This presentation should be read in conjunction with the Financial Report published on the same date.

Information contained in this presentation is current as at the date of release. This presentation is provided for information purposes only and has been prepared without taking account of any particular reader’s financial situation, objectives or needs. Nothing contained in this presentation constitutes investment, legal, tax or other advice. Accordingly, readers should, before acting on any information in this presentation, consider its appropriateness, having regard to their objectives, financial situation and needs, and seek the assistance of their financial or other licensed professional adviser before making any investment decision.

This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, nor does it form the basis of any contract or commitment. Except as required by law, no representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions, or as to the reasonableness of any assumption, contained in this presentation.

The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, the Group. In particular, they speak only as of the date of these materials, they assume the success of the Group’s business strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from forward looking statements and the assumptions on which those statements are based. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements. Past performance is not a reliable indicator of future performance.

By reading this presentation and to the extent permitted by law, the reader releases each entity in the Group and its affiliates, and any of their respective directors, officers, employees, representatives or advisers from any liability (including, without limitation, in respect of direct, indirect or consequential loss or damage or loss or damage arising by negligence) arising in relation to any reader relying on anything contained in or omitted from this presentation.

The Group, or persons associated with it, may have an interest in the securities mentioned in this presentation, and may earn fees as a result of transactions described in this presentation or transactions in securities in RGN. All values are expressed in Australian dollars unless otherwise indicated. All references to “securities” are to a stapled RGN security comprising one security in the Region Retail Trust and one security in the Region Management Trust.

This document has been authorised to be given to the ASX by the Board of RGN.