VICINITY CENTRES TRUST — Interim / Quarterly Report 2018

Apr 30, 2018

Mandurah Forum, WA

==> picture [1059 x 146] intentionally omitted <==

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

March 2018 quarterly update
1 May 2018
----- End of picture text -----

Portfolio strengthened

FY18 funds from operations (FFO) earnings guidance firmed to 18.2 cents per security[1 ]

==> picture [49 x 41] intentionally omitted <==

Sustained improvement in portfolio quality

Unrivalled premium CBD retail exposure with settlement of Sydney CBD Centres[2 ]

Chadstone, Australia’s number one centre, MAT up 24% to $1.99b

DFOs, Australia’s leading Outlet Centre portfolio, MAT up 4.6%

Progressing targeted divestments of ~$300m of non-core assets, with two centres sold for a combined $109m at a 3.1% premium to book value

Retail sales showing signs of improvement

Development pipeline delivery unlocking value and demonstrating capability

Chadstone $666m[3] major development yield improved to 7.0%

Mandurah Forum opened final stage and trading strongly

The Glen opened stage two and trading strongly

Meaningful growth opportunities

Significant development pipeline

Australia’s largest shopping centre solar investment project launched

Alternative income streams continue to grow strongly

Opportunity for significant mixed-use development at many assets

FY18 FFO guidance firmed to 18.2 cps, the top end of previous guidance range[1 ]

Distribution guidance for FY18 is to payout 100% of adjusted funds from operations (AFFO)[1]

1. Assuming no material deterioration to existing economic conditions. 2. Queen Victoria Building, The Galeries and The Strand Arcade. 3. 100% interest. Vicinity’s share is 50%.

==> picture [472 x 455] intentionally omitted <==

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

Queen Victoria Building, NSW
----- End of picture text -----

Vicinity Centres | March 2018 quarterly update | 1 May 2018

2

Portfolio quality and performance benefiting from ongoing active management

Specialty MAT has improved 22%[1] , and average asset value up 50%[2] , since merger

==> picture [49 x 41] intentionally omitted <==

Comparable specialty store sales

==> picture [500 x 322] intentionally omitted <==

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

Mar-18
11,000
10,500
Including Chadstone $10,243 [1]
10,000 Divested $930m of assets Acquired Sydney CBD Centres $9,918
Acquired Ellenbrook, Divested Toormina Gardens
9,500 Livingston and
DFO Brisbane
9,000
$8,412 Divested Acquired
$510m of assets remaining
8,500
25% of DFO
South Wharf
8,000
Divested $220m
of assets
7,500
7,000
Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17
MAT per sqm ($)
----- End of picture text -----

Improvement in metrics since merger

		**Mar-183 **	Jun-15	Change
	Number of retail assets	76	88	(12)
	Specialty sales per sqm4	$9,918	$8,412	18%
	Specialty occupancy cost4	14.8%	15.4%	(60 bps)
	Average asset value (100%)	$358m2	$239m	50%
	Weighted average capitalisation rate	5.42%	6.30%	(88 bps)

1. Only March 2018 includes Chadstone same-store specialty sales and the Sydney CBD Centres acquired in April 2018.

2. Excludes DFO Perth, WA, which is under construction and includes Sydney CBD Centres acquired in April 2018.

3. Includes Sydney CBD Centres acquired in April 2018.

4. Comparable. Excludes divestments and development-impacted centres in accordance with Shopping Centre Council of Australia (SCCA) guidelines.

Vicinity Centres | March 2018 quarterly update | 1 May 2018

3

Unrivalled premium retail offer across Australia’s three largest CBDs

Swap of premium Sydney assets settled

==> picture [49 x 41] intentionally omitted <==

Sydney CBD Centres

1.1b[Increase in assets under management ] $

24 225[Specialty MAT/sqm ] $ ,

5.0%[Specialty MAT growth]

16.3%[Specialty occupancy costs]

60m[Visitors annually ]

Acquired 50% interests in Queen Victoria Building, The Strand Arcade and The Galeries in exchange for a 49% interest in Chatswood Chase Sydney Presence in all three major CBDs provides unique competitive advantage in attracting best of class international and domestic retailers

Strong future potential at Sydney CBD Centres from customer growth, new transport infrastructure and opportunities to add value

==> picture [500 x 454] intentionally omitted <==

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

The Strand Arcade, NSW
----- End of picture text -----

Vicinity Centres | March 2018 quarterly update | 1 May 2018

4

Chadstone performing very strongly post development

Consumers attracted by unparalleled high quality experience and expanded luxury, dining and entertainment offer

==> picture [49 x 41] intentionally omitted <==

Annual MAT on track to achieve $2b during $1.99b the June 2018 quarter

MAT across Australia for 17[th] consecutive year[1] , #1 >60% higher than next peer

#1[Luxury precinct in Australia ]

12.8%[Annual growth in visitation to over 22m]

10.6%[Same-store specialty MAT growth ]

15.5%[Specialty occupancy costs ]

Victoria’s Secret flagship store in Australia 1st announced

7.0% Yield on $666m development[2] , exceeding feasibility expected return

==> picture [527 x 426] intentionally omitted <==

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

Artist’s impression
----- End of picture text -----

==> picture [155 x 19] intentionally omitted <==

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

1. Big Guns Survey 2018.
2. 100% interest. Vicinity’s share is 50%.
----- End of picture text -----

Vicinity Centres | March 2018 quarterly update | 1 May 2018

5

DFO portfolio continues to perform strongly

Leading owner and manager of Outlet Centres in Australia

==> picture [49 x 41] intentionally omitted <==

#1[Australia’s leading Outlet Centre portfolio ]

4.6%[MAT growth]

18.7%[Average leasing spread March 2018 quarter]

15.8%[Annualised total return since acquisition ]

$9,957[Specialty MAT/sqm ]

10.9%[Specialty occupancy costs ]

DFO South Wharf, VIC

Vicinity Centres | March 2018 quarterly update | 1 May 2018

6

Portfolio sales by store type

Sales have improved across the majority of categories

	Actual MAT	Actual MAT	Comparable1 growth	Comparable1 growth	Comparable1 growth
	MAT Mar-182 ($m) % of portfolio sales (%)		MAT		Quarter
			Mar-182 (%) Dec-17 (%)		Mar-182 (%)
Specialty stores	6,694	39	0.4	(0.7)	1.9
Mini majors	2,095	12	4.4	2.1	4.8
Specialties and mini majors	8,789	52	1.2	(0.1)	2.4
Supermarkets	4,579	27	2.0	1.5	1.6
Discount department stores	1,583	9	2.9	1.3	3.3
Other retail3	1,226	7	1.4	1.9	0.8
Department stores	803	5	(3.8)	(4.5)	0.3
Total portfolio	16,980	100	1.4	0.5	2.0

==> picture [49 x 41] intentionally omitted <==

Specialty stores

Including Chadstone same-store sales and excluding pre-development centres[4] , growth was 1.7% (versus 0.4%)

Mini majors

Including Chadstone same-store sales and excluding pre-development centres[4] , growth was 6.1% (versus 4.4%)

Supermarkets and discount department stores

Growth improving but performance across brands remains mixed

Note: Totals may not sum due to rounding.

1. Excludes divestments and development-impacted centres in accordance with SCCA guidelines.

2. Includes Sydney CBD Centres acquired in April 2018 where full sales history is available.

3. Other retail includes cinemas, travel agents, auto accessories, lotteries and other entertainment.

4. Pre-development centres are Bankstown Central, Chatswood Chase Sydney, Galleria, QueensPlaza and The Myer Centre Brisbane.

Vicinity Centres | March 2018 quarterly update | 1 May 2018

7

Portfolio specialty store performance

Retail services, leisure and food catering showing solid growth

	Actual MAT	Actual MAT	Comparable1 growth	Comparable1 growth	Comparable1 growth
	MAT Mar-182 ($m) % of portfolio sales (%)		MAT		Quarter
			Mar-182 (%) Dec-17 (%)		Mar-182 (%)
Apparel	2,348	35	(2.6)	(3.1)	(0.6)
Food catering	1,041	16	2.8	2.5	3.0
General retail3	611	9	1.2	(0.6)	4.7
Retail services	580	9	6.5	7.6	4.0
Food retail	544	8	(2.1)	(2.7)	(3.1)
Jewellery	510	8	0.5	(4.5)	2.0
Leisure	449	7	4.2	3.3	4.4
Homewares	377	6	1.5	(0.9)	1.3
Mobile phones	234	3	(0.4)	(5.4)	10.0
Total specialty stores	6,694	100	0.4	(0.7)	1.9

==> picture [49 x 41] intentionally omitted <==

Apparel

Impact from tenant administrations has reduced and benefits of remixing to stronger performing brands are being realised

Men’s apparel (+3.4%) performing strongly, jeaneries & unisex and fashion accessories showing improvement

Food catering

Cafes & restaurants (+3.9%) and take-away food (+2.1%) continue to perform well as exposure to this category expands

General retail

Cosmetics (+6.1%) remains strong

Retail services

Strong sales continuing, particularly in hairdressing and beauty (+8.7%) and optometrists (+4.0%)

Food retail

Remixing high performing specialties to larger formats (>400 sqm) is impacting category performance

Leisure

Sporting goods (+11.3%) and books (+10.6%) showing strong growth

Homewares

Electrical/computers showing solid growth (+2.4%) as impact from Dick Smith administration wanes

Note: Totals may not sum due to rounding.

1. Excludes divestments and development-impacted centres in accordance with SCCA guidelines.

2. Includes Sydney CBD Centres acquired in April 2018 where full sales history is available.

3. General retail includes giftware, pharmacy and cosmetics, pets, discount variety, tobacconists, florists and toys.

Note: Percentages above relate to MAT growth.

Vicinity Centres | March 2018 quarterly update | 1 May 2018

8

Mandurah Forum – $320m[1] major development

Final stage completed and successfully opened in March 2018

==> picture [49 x 41] intentionally omitted <==

Project involved a complete centre transformation

Final stage opened 22 March 2018

Included new-format 4,000sqm David Jones store, H&M, premium fashion mall and over 100 specialty stores

Customer traffic for first five weeks up over 160% compared to corresponding period prior to development commencing

Same-store specialty sales up 8.5% for March 2018 Back-fill and tenant remixes to be completed by mid-2018

Expected to exceed project feasibility Target initial yield of >6% and IRR of >10%

Outdoor dining precinct

1. 100% interest. Vicinity’s share is 50%.

Vicinity Centres | March 2018 quarterly update | 1 May 2018

9

The Glen – Stage two of $430m[1] major redevelopment opened

First two stages of development successfully completed

==> picture [49 x 41] intentionally omitted <==

Stage one, fresh food precinct, exceeding expectations since opening in October 2017

Stage two casual dining precinct successfully opened in March 2018

Includes first-to-market high street casual dining offers from HuxtaGO, Capricho, Chinta Ria Soul and Omi Wagyu

Stage three to open October 2018 and includes homewares, lifestyle and apparel

Remains on program to complete in stages through to 2020

Including smaller-format David Jones, H&M, Uniqlo, premium food and casual dining

Over 500 apartments to be built by 2021

Third party developer to pay $60m for residential air rights Introduces 500 new households on-site at the centre

Expected to exceed project feasibility

Target initial yield of >6% and IRR of >10%

1. 100% interest. Vicinity’s share is 50%.

Stage two – food gallery

Vicinity Centres | March 2018 quarterly update | 1 May 2018

10

DFO Perth – $150m[1] development of Perth’s first DFO

Nearing completion, on track for third quarter 2018 opening

==> picture [49 x 41] intentionally omitted <==

Reinforces Vicinity’s leadership in Outlet Centres Leasing progressing well - tenants include Polo Ralph Lauren, Coach, Furla, Tommy Hilfiger, Calvin Klein and Skechers Centrally located adjacent to Perth Airport Costco to open on an adjacent site in 2020, subject to planning approvals, further enhancing visitation to the precinct

Expected to exceed target initial yield of >10% and IRR of >15%

Artist’s impression

1. 100% interest. Vicinity’s share is 50%.

Vicinity Centres | March 2018 quarterly update | 1 May 2018

11

Future project – Galleria

Retail expansion to reinforce centre as premier retail destination in north east Perth

==> picture [49 x 41] intentionally omitted <==

Artist’s impression

Vicinity Centres | March 2018 quarterly update | 1 May 2018

12

Future project – Chatswood Chase Sydney

Reinforce centre as Sydney’s dominant luxury and international retail, premium food and leisure destination

==> picture [49 x 41] intentionally omitted <==

Artist’s impression

Vicinity Centres | March 2018 quarterly update | 1 May 2018

13

Future project – The Myer Centre Brisbane

Reinforce centre as Brisbane CBD’s premier retail destination

==> picture [49 x 41] intentionally omitted <==

Artist’s impression

Vicinity Centres | March 2018 quarterly update | 1 May 2018

14

Future project – Bankstown Central

Opportunity to create a new revitalised Bankstown CBD, capitalising on future metro line

==> picture [49 x 41] intentionally omitted <==

==> picture [752 x 454] intentionally omitted <==

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

Land owned by Vicinity
Future metro station
Artist’s impression
----- End of picture text -----

Vicinity Centres | March 2018 quarterly update | 1 May 2018

15

Future project – Box Hill Central

Create new town centre that leverages existing bus, tram, rail and road infrastructure, with significant residential population growth

==> picture [49 x 41] intentionally omitted <==

==> picture [1000 x 455] intentionally omitted <==

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

Box Hill Central (North)
Box Hill Central (South)
Third party development sites proposed around Vicinity’s Box Hill Central, VIC
----- End of picture text -----

Vicinity Centres | March 2018 quarterly update | 1 May 2018

16

Intensive asset management driving tangible benefits

Significant opportunities drive operational initiatives and income growth

==> picture [49 x 41] intentionally omitted <==

==> picture [109 x 153] intentionally omitted <==

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

Rooftop
panels
----- End of picture text -----

Australia’s largest shopping centre solar investment project launched

Stage one $28m capital investment

11.2MW capacity being installed across five centres

Average yield ~14% and an IRR of ~14%

Next stage to target additional 10 centres

Driving operational improvements and growth in alternative income streams

Managed car parks – currently operating at 14 centres, 5 additional centres planned through to FY20

Electricity on sell – across 49 centres, 9 additional centres planned through to FY20

==> picture [125 x 52] intentionally omitted <==

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

Car park
shade panels
----- End of picture text -----

Vicinity media – currently over 80 screens, 30 additional screens planned for FY19

Solar installation at Elizabeth, SA – Artist’s impression

Vicinity Centres | March 2018 quarterly update | 1 May 2018

17

Well positioned for the future

Sustained portfolio quality and performance improvement, with opportunities to generate additional value for securityholders

==> picture [49 x 41] intentionally omitted <==

Significantly improved portfolio since merger Australia’s # 1 retail destination, Chadstone ($18,416/sqm[1] ) Australia’s leading Outlet Centre portfolio ($9,957/sqm[1] ) Unrivalled premium retail offer across Australia’s three largest CBDs ($17,023/sqm[1] )

Pro-active leasing strategy re-weighting portfolio to higher demand categories

One of Australia’s deepest development pipelines Significant pipeline providing opportunities to further expand and enhance portfolio performance

Substantial mixed-use opportunities

Market update in mid-2018

==> picture [580 x 414] intentionally omitted <==

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

Chadstone, VIC – Retail, office and hotel (underway)
----- End of picture text -----

1. Specialty sales per sqm. Same-store sales for Chadstone.

Vicinity Centres | March 2018 quarterly update | 1 May 2018

18

Investor calendar

Key dates

==> picture [49 x 41] intentionally omitted <==

	Key dates
	Ex-distribution date for June 2018 distribution	28 June 2018
	Record date for June 2018 distribution	29 June 2018
	FY18 annual results	15 August 2018
	June 2018 distribution payment	29 August 2018
	2018 Annual General Meeting	1 November 2018

Note: These dates are indicative only and may be subject to change.

Vicinity Centres | March 2018 quarterly update | 1 May 2018

19

Contact details and disclaimer

==> picture [49 x 41] intentionally omitted <==

For further information please contact:

Penny Berger Head of Investor Relations T +61 2 8229 7760 E penny.berger@vicinity.com.au

Troy Dahms Senior Investor Relations Manager T +61 2 8229 7763

E troy.dahms@vicinity.com.au

Disclaimer

This document is a presentation of general background information about the activities of Vicinity Centres (ASX:VCX) current at the date of lodgement of the presentation (1 May 2018). It is information in a summary form and does not purport to be complete. It is to be read in conjunction with other releases lodged with the Australian Securities Exchange by Vicinity Centres. 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 or without professional advice, when deciding if an investment objective is appropriate.

This presentation contains certain forecast financial information along with forward-looking statements in relation to the financial performance and strategy of Vicinity Centres. The words ‘anticipate’, ‘believe’, ‘expect’, ‘project’, ‘forecast’, ‘estimate’, ‘outlook’, ‘upside’, ‘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, financial position, performance and distributions are also forward-looking statements. The forward-looking statements included in this presentation are based on information available to Vicinity Centres as at the date of this presentation. Such forward-looking statements are not representations, assurances, predictions or guarantees of future results, performance or achievements expressed or implied by the forward-looking statements and involve known and unknown risks, uncertainties, assumptions and other factors, many of which are beyond the control of Vicinity Centres. The actual results of Vicinity Centres may differ materially from the anticipated results, performance or achievements expressed, projected or implied by these forward-looking statements and you should not place undue reliance on such forward-looking statements.

Except as required by law or regulation (including the ASX Listing Rules), Vicinity Centres disclaims any obligation to update these forward-looking statements.

Vicinity Centres | March 2018 quarterly update | 1 May 2018

20